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Stock Based Compensation
 12 Months Ended
Sep. 30, 2011
Stock Based Compensation [Abstract]  
Stock Based Compensation

NOTE 11 - STOCK BASED COMPENSATION

The Company maintains stock based compensation plans, which provide for the issuance of Company stock to certain directors, officers, key employees and affiliates.

On March 17, 2009 the stockholders of the Company approved the 2009 Incentive Compensation Plan (the "2009 Plan"). The 2009 Plan provides that the total number of shares of Company stock that may be subject to the granting of awards under the 2009 Plan ("Awards") at any time during the term of the 2009 Plan shall be equal to 800,000 shares of common stock and 160,000 shares of Class B stock. The foregoing limit shall be increased as provided for in the 2009 Plan. Persons eligible to receive Awards under the 2009 Plan include employees, directors, consultants and other persons who provide services to the Company. The 2009 Plan imposes individual limitations on the amount of certain Awards in part to comply with IRS Code Section 162(m). The Awards can be in the form of stock options, restricted and deferred stock, performance awards and other stock base awards as provided for in the 2009 Plan.

 

On July 1, 2011, 298,000 common stock options were issued under the 2009 Plan to employees. These options vest at 25% per year starting on October 1, 2012 and each year thereafter through October 1, 2015. As long as the employee remains employed by the Company, these options will be exercisable upon vesting and remain exercisable through October 1, 2021. The Company used the Black-Scholes pricing model to estimate the fair value of the options of $932,000 at time of grant. At September 30, 2011, $885,000 of compensation expense remained to be expensed over the next three years. The following assumptions were used to determine the fair value of the stock options during the year ended September 30, 2011:

 

Risk-free interest rate

    2.0%        

Expected life of options

    9.8 years  

Dividend yield

    0.0%        

Volatility

    34.2%      

As of September 30, 2011, 502,000 shares of Company common stock and 160,000 shares of Class B stock are available for granting of awards under the 2009 Plan.

The following table summarizes option activity under the 2009 Plan:

 

     Number of
Shares		      Option Price
Per Share		  

Options granted – July 1, 2011

      298,000       $ 7.689   
  

 

 

     

 

 

  

Options outstanding at September 30, 2011

      298,000       $ 7.689   
  

 

 

     

 

 

  

There were no awards granted or outstanding under the 2009 Plan as of September 30, 2010. The weighted average remaining contractual life on the options outstanding as of September 30, 2011 under the 2009 Plan is 10 years.

The 1997 Stock Option Plan (the "1997 Plan") provided for the issuance of incentive stock options and nonqualified stock options to purchase up to 1,200,000 shares of the Company's common stock, 1,200,000 shares of the Company's Class B stock and up to fifteen percent (15%) of the authorized common stock of any subsidiary. Under the terms of the 1997 Plan, option holders may tender previously owned shares with a market value equal to the exercise price of the options at exercise date, subject to compensation committee approval. Additionally, option holders may, upon compensation committee approval, surrender shares of stock to satisfy federal withholding tax requirements. Options become exercisable in a manner and on such dates and times as determined by a committee of the Board of Directors. Options expire not more than ten years from the date of grant. The option holders have no shareholder rights until the date of issuance of a stock certificate for such shares.

As of September 30, 2011, there were no options available for future grants under the 1997 Plan.

The following table summarizes option activity under the 1997 Plan:

 

     Number of
Shares		      Option Price
Per Share		  

Outstanding at September 30, 2011 and 2010

      27,500       $ 9.32   
  

 

 

     

 

 

  

The weighted average remaining contractual life on the options outstanding as of September 30, 2011 under the 1997 Plan is 5 years.