Stock Option Plan

3 Months Ended

Mar. 31, 2014

Stock Option Plan

Note 4. Equity Compensation Plans

Prior to the adoption of the 2013 Plan , as defined below, the Corporation utilized a stock-based compensation plan, which is the 1999 Directors’ Stock Compensation Plan (the “Directors’ Plan”) for directors, and prior to its expiration, the 1999 Employees’ Long-Term Incentive Plan, or the Employees’ Plan, for employees.

The following table is a summary of the stock option activity for the three months ended March 31, 2014.

	Directors’ Plan				Employees’ Plan					2013 Plan
			Weighted					Weighted				Weighted
	Number		Average		Number			Average		Number		Average
	of		Exercise		of			Exercise		of		Exercise
	Shares		Price		Shares			Price		Shares		Price
Outstanding at December 31, 2013		103,500	$	21.30		82,000		$	22.06		—	$	—
Granted		—		—		—			—		—		—
Exercised		—		—		—			—		—		—
Expired		—		—		(28,500	)		21.85		—		—
Outstanding at March 31, 2014		103,500	$	21.30		53,500		$	22.17		—	$	—

The intrinsic value of options granted under the Directors’ Plan at March 31, 2014, was $6,600, the intrinsic value of options granted under the Employees’ Plan at March 31, 2014, was $825 and since there were no options granted under the 2013 Plan, the intrinsic value for the 2013 Plan is $0 for a total intrinsic value at March 31, 2014, of $7,425.

The Corporation has adopted the 2013 Incentive Compensation Plan (the “2013 Plan”), which the Corporation intends to use for all future equity grants to employees, directors or consultants until the termination or expiration of the 2013 Plan. During the first quarter of 2014, restricted stock grants were made totaling 7,500 shares of common stock. These grants have a vesting period of one year during which time the recipients have rights to vote the shares and to receive dividends. The grant date fair value of these shares was $138,000 and will be recognized over the twelve month restriction period at a cost of $11,500 per month less deferred taxes of $4,290 per month.