Note 11 – Stock Compensation Plans (continued) A summary of option activity for the year ended December 31, 2011 is presented below: The total intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was $26.0 million, $25.7 million  and $0.3 million, respectively. Net cash proceeds from the exercise of stock options were $16.6 million, $44.6 million and $0.8 million,  respectively. Income tax benefits were $7.2 million, $5.8 million and $0.1 million for the years ended December 31, 2011, 2010 and  2009, respectively. A summary of restricted share activity for the year ended December 31, 2011 is as follows: As of December 31, 2011, a total of 623,642 restricted shares have been awarded and are not vested. The Company distributed  302,924, 372,942 and 388,076 shares in 2011, 2010 and 2009, respectively, due to the vesting of these awards. The shares awarded  in 2011, 2010 and 2009 totaled 246,890, 400,980 and 372,398, respectively. The Company recognized compensation expense of $7.5  million, $8.0 million and $7.9 million, for the years ended December 31, 2011, 2010 and 2009, respectively, relating to restricted shares. As of December 31, 2011, the Company had unrecognized compensation expense of $29.3 million related to stock option awards and  restricted shares. The unrecognized compensation expense is expected to be recognized over a total weighted average period of two  years. The number of shares available for future grants for all plans at December 31, 2011 was 8,883,773. The Company offers to certain employees a performance unit component under its long-term incentive plan in which awards are earned  based on Company performance measured by two metrics over a three-year performance period. The Compensation Committee of the  Board of Directors can elect to make payments that become due in the form of cash or the Company’s common stock. A total of 34,756,  69,440 and 47,083 performance units were granted in 2011, 2010 and 2009, respectively. Performance units granted, if fully earned,  would represent 811,578 shares of the Company’s common stock at December 31, 2011. Since the inception of the plan, 159,641  performance units were canceled. Each performance unit has a cash value of $100. FINANCIAls ANd FOOTNOTEs Number  of shares weighted  average  Exercise  Price weighted  average  Remaining  contractual  Term aggregate  Intrinsic  Value  (millions) Outstanding – beginning of year 4,384,171  $ 23.80 Granted  713,500   49.91  Exercised  (937,347)  23.48  Canceled or expired  (70,274)  28.33  Outstanding – end of year 4,090,050  $ 28.35 7 years $ 50.2 Options expected to vest 3,991,457 $ 28.33 7 years $ 48.9 Options exercisable 1,806,166  $ 26.63 5 years $ 21.8 Number of shares weighted average Grant Date Fair Value Outstanding – beginning of year  698,352  $ 22.99 Granted  246,890   50.30  Vested  (302,924)  27.53  Canceled or expired  (18,676)  28.89  Outstanding – end of year  623,642  $ 31.41 63 THE TIMKEN COMPANY