Stock Option Plan

3 Months Ended

Mar. 31, 2012

Stock Option Plan

Stock Option Plan

Note 4: Stock Option Plan

In fiscal 2004, the Company adopted a Stock Option Plan that provided for the issuance of 142,857 incentive options and 61,224 non-incentive options with respect to authorized common stock. As of March 31, 2012, all options under the 2004 Plan have been granted and (excluding forfeited options), are subject to exercise at the discretion of the grantees, and will expire in August of 2013 unless otherwise exercised or forfeited.

The Company accounts for the stock option plan in accordance with the provisions of FASB ASC 718-10. FASB ASC 718-10 requires the recognition of compensation expense related to stock option awards based on the fair value of the option award at the grant date. Compensation cost is then recognized over the vesting period. There were no options granted during the three months ended March 31, 2012 and 2011. There was no compensation expense recognized for the stock option plan during the three months ended March 31, 2012 and 2011, as all options were fully vested prior to these periods.

A summary of the status of the Company’s stock option plan as of and for the three months ended March 31, 2012, and for the year ended December 31, 2011 is presented below:

	Three months ended March 31,					Year ended December 31,
	2012					2011
	Shares			Weighted Average exercise price		Shares			Weighted Average exercise price
Outstanding at beginning of period		63,408		$	13.95		83,816		$	13.95
Granted		—			—		—			—
Exercised		—			—		—			—
Forfeited		(2,000	)		13.95		(20,408	)		13.95
Outstanding at end of period		61,408		$	13.95		63,408		$	13.95
Options exercisable at period-end		61,408		$	13.95		63,408		$	13.95

The following information applies to options outstanding at March 31, 2012:

Number outstanding	61,408
Exercise price on all remaining options outstanding	$13.95
Weighted-average remaining contractual life	1.50 years