10. BENEFIT PLANS

Profit Sharing/401(k) Retirement Plan — The Bank has a 401(k) Retirement Plan (“401(k)”). The 401(k) offers a corporate match program of 100% of the first 3% of employee directed contributions and a 50% match up to an additional 2% of employee directed contributions. For the calendar year ending December 31, 2012 and 2011, we recognized expenses of $188,861 and $139,825, respectively.

Stock Option Plans - We have incentive compensation plans that permit the granting of incentive and non-qualified awards in the form of stock options. Generally, the terms of these plans stipulate that the exercise price of options may not be less than the fair market value of WSB’s common stock on the date the options are granted. Options predominantly vest over a two year period from the date of grant, and expire not later than ten years from the date of grant.

All outstanding options are vested and there is currently no unrealized compensation cost related to non-vested share based compensation arrangements.

Equity Incentive Plans — On April 27, 2011, the stockholders of WSB Holdings, Inc. approved the adoption of the WSB Holdings, Inc. 2011 Equity Incentive Plan, which reserve shares of common stock for issuance to certain key employees and non-employee directors. The maximum number of shares of our common stock that be issued with respect to awards granted under the plan is 500,000 plus (i) any shares of common stock that are available under the Washington Savings Bank 2001 Stock Option and Incentive Plan (the “2001 Plan”) as of its termination date (which was April 27, 2011) and (ii) shares of common stock subject to options granted under the 2001 Plan that expire or terminate without having been fully exercised. In no event, however, may the number of shares issuable pursuant to incentive stock options exceed 500,000. The period during which an option granted under the Plan will be exercisable, as determined by the Administrator, will be set forth in the agreement evidencing the option award. However, an incentive stock option may not be exercisable for more than ten years from its date of grant.

Information with respect to stock options is as follows:

	December 31,
	2012				2011
			Weighted				Weighted
			Average				Average
			Exercise				Exercise
	Shares		Price		Shares		Price

Outstanding at beginning of year	33,875		$	5.71	341,375		$	3.56
Exercised	(21,375	)	5.20		(70,500	)	3.16
Granted	—		—		—		—
Forfeited/expired	(7,500	)	5.20		(237,000	)	3.37

Outstanding at end of year	5,000		$	8.65	33,875		$	5.71
Exercisable at end of year	5,000		$	8.65	33,875		$	5.71

A summary of options outstanding and exercisable at December 31, 2012 is as follows:

Options Outstanding and Exercisable
			Weighted Average	Options
Exercise			Remaining	Currently
Price		Shares	Life (years.months)	Exercisable

$	8.6500	5,000	4.04	5,000

There were no options granted during 2012 or 2011. The total intrinsic value of options exercised during the years ended December 31, 2012 and 2011 was $12,184 and $6,213 respectively. The aggregate intrinsic value of all options outstanding and exercisable was $0 at December 31, 2012. There was no pre-tax stock-based compensation recognized in the Statements of Operations for the years ended December 31, 2012 and December 31, 2011. All outstanding options are vested and there is currently no unrealized compensation cost related to non-vested share based compensation arrangements.