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Stock Options and Stock-Based Compensation
 3 Months Ended
Mar. 31, 2012
Stock Options and Stock-Based Compensation [Abstract]  
Stock Options and Stock-Based Compensation
Note 5 - Stock Options and Stock-Based Compensation

At the 2010 Annual Meeting, shareholders approved the 2010 Equity Incentive Plan (the "2010 Plan"). This reserves 400,000 shares of common stock for issuance in connection with stock options, restricted stock awards and other equity based awards to attract and retain the best available personnel, provide additional incentive to officers, employees and non-employee Directors and promote the success of our business. Such grants and awards will be structured in a manner that does not encourage the recipients to expose the Company to undue or inappropriate risk. Options issued under the 2010 Plan will qualify for treatment as incentive stock options for purposes of Section 422 of the Internal Revenue Code. Other compensation under the 2010 Plan will qualify as performance-based for purposes of Section 162(m) of the Internal Revenue Code, and will satisfy NASDAQ guidelines relating to equity compensation.
As of March 31, 2012, 19,727 shares of restricted stock had been granted under the 2010 Plan, as detailed in the following table:

Year
Granted
Vesting Term
(In Years)
Shares
Remaining Term
(In Years)
2011
4.0
1,500
2.9
2011
5.0
5,500
3.9
2012
3.0
2,027
2.9
2012
4.0
2,704
3.9
2012
5.0
7,996
4.9
   
19,727
4.1

The compensation cost related to these restricted stock grants was $302,000 and will be recognized over the vesting terms of each grant. In the first quarter of 2012, $24,000 of expense was recognized for these restricted shares, leaving $256,000 in unrecognized expense as of March 31, 2012. In the first quarter of 2011, $6,000 of expense was recognized for these restricted shares, leaving $105,000 in unrecognized expense as of March 31, 2011.
The Company established a shareholder-approved stock option plan in 1995 (the "1995 Plan"), under which the Company granted options to employees for 600,000 shares of common stock. Only incentive stock options were granted under the 1995 Plan. The option price of each option grant was determined by the Options Committee of the Board of Directors, and in no instance was less than the fair market value on the date of the grant. An option's maximum term was ten years from the date of grant, with 50% of the options granted vesting two years from the date of grant and the remaining 50% vesting five years from date of grant. As of January 16, 2005, all options under the 1995 Plan had been granted.
The Company applies the fair value recognition provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 718 "Compensation - Stock Compensation", to stock-based employee compensation. As of March 31, 2012, all outstanding options were fully vested and all compensation cost for options had been recognized. A summary of the status of outstanding stock options as of March 31, 2012 and changes during the three-month period then ended, is presented below.

   
Number of Shares
  
Weighted Average Exercise Price
  
Weighted Average Remaining Contractual Term (In years)
  
Aggregate Intrinsic Value
(In thousands)
 
Outstanding at December 31, 2011
  51,000  $16.47       
     Granted in 2012
  -   -       
     Exercised in 2012
  (9,000) $9.33     $59,000 
     Forfeited in 2012
  -   -        
Outstanding at March 31, 2012
  42,000  $18.00   2.8   - 
Exercisable at March 31, 2012
  42,000  $18.00   2.8   -