Note 4

9 Months Ended

Sep. 30, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

4.           The Company maintains an Incentive Stock Option and Stock Award Plan under which officers and key employees may acquire up to a maximum of 2,052,408 common shares. 

Stock Options

The Company’s Stock Option Plan ended on December 31, 2008.  Options were granted through December 31, 2008 at an option price not less than fair market value on the date of grant and are exercisable not earlier than six months nor later than ten years from the date of grant. Options vest over two and three year periods. As of September 30, 2011, 5 persons held outstanding options and were eligible to participate in the plan. Such options expire on various dates through April 8, 2014.

Under the stock option plan, the exercise price of each option equals the market price of the Company’s stock on the date of grant. For purposes of calculating the compensation cost consistent with GAAP USA guidelines, the fair value of each grant was estimated on the date of grant using the Black-Scholes option-pricing model. The Company has not issued any Incentive Stock Options since 2004, except for adjustments to previous grants for the 5% stock dividend declared in subsequent years.   It is the Company’s policy to issue new stock certificates to satisfy stock option exercises.

The following table summarizes information about stock options outstanding for the nine months ending September 30, 2011:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding at beginning of year		34,365		$	1.79
Granted		0		$	0.00
Forfeited		0		$	0.00
Exercised		(1,843	)	$	1.39
Outstanding, September 30, 2011		32,522		$	1.81		1.4	$	18,000
Exercisable, September 30, 2011		32,522		$	1.81		1.4	$	18,000

Restricted Shares

The employees will earn the restricted shares in exchange for services to be provided to the Company over a three year or five-year vesting period. All shares granted are governed by the Company’s Stock Award Plan, which was approved by shareholders in 2000. As of September 30, 2011, 174,066 restricted shares are outstanding on a dividend adjusted basis. Total unrecognized compensation cost related to unvested stock awards is approximately $223,000 and is expected to be recognized over a weighted average period of 2.3 years.

The following table summarizes information regarding Restricted Share activity for the nine months ending September 30, 2011:

	Shares			Weighted Average Grant Date Fair Value
Unvested at December 31, 2010		152,460		$	1.54
Granted		63,000		$	2.33
Vested		(41,394	)	$	0.99
Forfeited		0		$	0.00
Unvested, September 30, 2011		174,066		$	1.96