16. STOCK BASED COMPENSATION

12 Months Ended

Oct. 31, 2012

Compensation and Retirement Disclosure [Abstract]

16. Compensation Plans

16.  STOCK BASED COMPENSATION

Stock Option and Incentive Plans

In April 1998, the Company’s shareholders approved the 1998 Incentive and Non Statutory Stock Option Plan (the “1998 Plan”).  In April 2003, the Company’s shareholders approved an increase in the authorized number of shares to be issued under the 1998 Plan from 1,500,000 to 2,000,000.  This plan provides for issuance of options to purchase up to 2,000,000 options to purchase the Company’s common stock under the administration of the compensation committee of the Board of Directors.  The intent of this plan is to issue options to officers, employees, directors, and other individuals providing services to the Company.  Of the total amount of shares authorized under this plan, 120,500 option shares are outstanding and 1,879,500 option shares are available for grant at October 31, 2012.

In April 2004, the Company’s shareholders approved the 2004 Stock Incentive Plan (the “2004 Plan”).  This plan provides for issuances of awards of up to 250,000 of the Company’s common stock in the form of restricted or unrestricted shares, or incentive or non-statutory stock options for the purchase of the Company’s common stock. Of the total amount of shares authorized under this plan, 149,000 option shares are outstanding, 26,000 restricted shares have been granted, and 75,000 shares are available for grant at October 31, 2012.

All incentive and non-qualified stock option grants had an exercise price equal to the market value of the underlying common stock on the date of grant. The following table summarizes the activity related to stock options and outstanding stock option balances during the last two fiscal years:

	Outstanding Options (Shares)			Weighted Average Exercise Price
Balance at October 31, 2010		304,500		$	2.63
Expired		(20,000	)		3.47
Balance at October 31, 2011		284,500			2.57
Expired		(15,000	)		4.09
Balance at October 31, 2012		269,500			2.48

In 2012 and 2011, the 15,000 and 20,000 respective options that expired were originally issued from the 1998 Plan.

The total shares available for grant under all plans are 1,954,500 at October 31, 2012.

The following table summarizes information pertaining to outstanding stock options, all of which are exercisable, as of October 31, 2012:

Exercise Price Range		Outstanding Options (Shares)		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Intrinsic Value
$	1.80 - $2.60		234,500		2.23	$	2.32	$	-
$	2.81 - $3.38		20,000		1.00		3.28		-
$	3.50 - $4.25		15,000		.06		4.07		-
			269,500		2.02	$	2.48	$	-

All of the outstanding options as of October 31, 2012 and 2011 were vested.

Outstanding options were granted with lives of 10 years and provide for vesting over a term of 5 years.