Compensation Plan for Outside Directors

9 Months Ended

Sep. 30, 2011

Compensation Plan for Outside Directors [Abstract]

7. Compensation Plan for Outside Directors

The Company compensated its outside directors through the payment of cash fees and, from time to time, through the issuance of equity awards.

On June 10, 2009, the Company issued an aggregate of 2,305 shares of common stock and 8,350 restricted shares of common stock (the “Restricted Shares”) to our outside directors. The Restricted Shares vested in full in June 2010. Restricted Shares awarded to employees and directors are measured at their fair market value using the grant-date price of the Company’s shares. For the three- and nine-month periods ended September 30, 2010, the Company recognized nil and $37,696, respectively, of compensation expense related to these awards, which are included in operating expenses in the accompanying condensed consolidated statement of income.

The total accrued compensation cost for the three-month periods ended September 30, 2011 and 2010 in cash and equity awards amounts to $105,112 and $132,718 , respectively which were included in operating expenses. For the nine-month periods ended September 30, 2011 and 2010, the Company recognized $428,402 and $279,947 respectively, which amounts are included in operating expenses in the accompanying condensed consolidated statement of income.

- Definition

The entire disclosure for compensation costs, including compensated absences accruals, compensated absences liability, deferred compensation arrangements and income statement compensation items. Deferred compensation arrangements may include a description of an arrangement with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain amounts at designated future dates, usually including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares (units) issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

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