Equity Plan

6 Months Ended

Jun. 30, 2013

Equity Plan

Equity Plan

10) Equity Plan

        The Company has maintained an Amended and Restated 2004 Equity Plan (the "2004 Plan") for directors, officers, and key employees. The Equity Plan provides for the grant of incentive and non-qualified stock options and restricted stock. The Equity Plan provides that the option price for both incentive and non-qualified stock options will be determined by the Board of Directors at no less than the fair value at the date of grant. Options granted vest on a schedule determined by the Board of Directors at the time of grant. Generally, options vest over four years. All options expire no later than ten years from the date of grant. The 2004 Plan was terminated on May 23, 2013. On May 23, 2013, the Company's shareholders approved the 2013 Equity Incentive Plan (the "2013 Plan") for equity awards including stock options and restricted stock for directors, officers, and key employees. As of June 30, 2013, there were no equity awards issued and 1,750,000 shares available for issuance under the 2013 Plan.

        Stock option activity under the 2004 Plan is as follows:

Total Stock Options	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2013		1,314,347		$	12.90
Granted		272,050		$	6.57
Exercised		(6,374	)	$	4.09
Forfeited or expired		(29,885	)	$	11.49
Outstanding at June 30, 2013		1,550,138		$	11.85		6.1	$	1,030,000
Vested or expected to vest		1,472,631					6.1	$	978,000
Exercisable at June 30, 2013		1,033,651					4.6	$	592,000

        As of June 30, 2013, there was $1,914,000 of total unrecognized compensation cost related to nonvested stock options granted under the 2004 Plan. That cost is expected to be recognized over a weighted-average period of approximately 3.22 years.

        Restricted stock activity under the 2004 Plan is as follows:

Total Restricted Stock Award	Number of Shares			Weighted Average Grant Date Fair Value
Nonvested shares at January 1, 2013		88,000		$	5.74
Granted		10,000		$	6.51
Vested		(40,000	)	$	5.16
Forfeited		—		$	—
Nonvested shares at June 30, 2013		58,000		$	6.28

        As of June 30, 2013, there was $198,000 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the 2004 Plan. The cost is expected to be recognized over a weighted-average period of approximately 1.1 years.