Stock Based Compensation

9 Months Ended

Sep. 30, 2013

Note 4 – Stock Based Compensation

Accounting standards require companies to recognize the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant.

Note 4 – Stock Based Compensation (continued)

Stock option plan activity for the nine months ended September 30, 2013 is summarized below:


			Weighted
		Weighted	Average
		Average	Remaining	Average
		Exercise	Contractual	Intrinsic
	Shares	Price	Life (in years)	Value

Options outstanding, January 1, 2013	175,366	$ 9.66
Granted	-	-
Exercised	-	-
Forfeited	(1,531)	10.96
Options outstanding, September 30, 2013	173,835	9.65	1.3	$ 31,309
Options exercisable, September 30, 2013	173,835	$ 9.65	1.3	$ 31,309

Intrinsic value is calculated by subtracting exercise price of option shares from the market price of underlying shares as of September 30, 2013 and multiplying that amount by the number of options outstanding. No intrinsic value exists where the exercise price is greater than the market price on a given date.

All compensation expense related to the foregoing stock option plan has been recognized. The Company’s ability to grant additional options shares under the 1999 Plan has expired.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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