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STOCK REPURCHASE PROGRAM
9 Months Ended
Sep. 30, 2012
STOCK REPURCHASE PROGRAM  
STOCK REPURCHASE PROGRAM

8.                 STOCK REPURCHASE PROGRAM

 

On July 10, 2012, the Company authorized a Common Stock repurchase plan structured to comply with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934.  Under the plan, the Company purchased 38,315 shares in the three months ended September 30, 2012.  Notwithstanding the terms of the plan, the exact number of shares which may be purchased in the future pursuant to the plan is difficult to predict given the current market in the Company’s Common Stock.  The plan will expire on August 1, 2014 at the latest.

 

Pursuant to the Certificates of Designation, Preferences, Rights And Limitations of the Series I Class B and Series II Class B Convertible Preferred Stock, the Company would be prohibited from purchasing its Common Stock while dividends are in arrears.  Therefore, in order to continue the Common Stock repurchase plan, the Company plans to continue to pay dividends on the Series I Class B and Series II Class B Preferred Stock if such payments can be made in accordance with state law and other contractual obligations.  The Company paid such dividends on July 31, 2012 to the Series I Class B and Series II Class B Convertible Preferred Stockholders in the amounts of $38,813 and $134,025, respectively.  On September 28, 2012, the Company declared dividends to holders of the Series I Class B and Series II Class B Convertible Preferred Stock in the amounts of $12,938 and $44,675, respectively.  The dividends were paid on October 22, 2012 to shareholders of record as of the close of business on October 10, 2012.