STOCK OPTIONS

12 Months Ended

Dec. 31, 2012

STOCK OPTIONS

STOCK OPTIONS

10. STOCK OPTIONS

        The Company has a Stock Incentive Plan which was approved in 1999. Under the 1999 Stock Incentive Plan, options are periodically granted to employees at a price not less than fair market value of the shares at the date of grant (or less than 110% of the fair market value if the participant owns more than 10% of the Company's outstanding Common Stock). The term of the stock incentive option may not exceed ten years from the date of grant; however, any stock incentive option granted to a participant who owns more than 10% of the Common Stock will not be exercisable after the expiration of five (5) years after the date the option is granted.

        A summary of the status of the Company's stock options as of December 31, 2012, 2011, and 2010, and changes during the years ended on those dates is presented below:

	2012									2011					2010
	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding—beginning of year		103,553		$	10.20		3.97				110,053		$	10.17		123,503		$	10.16
Granted		—			—						—			—		—			—
Exercised		—			—						—			—		—			—
Expired/Terminated		(13,676	)		7.74						(6,500	)		9.70		(13,450	)		10.08
Outstanding—end of year		89,877		$	10.58		3.59	$	—		103,553		$	10.20		110,053		$	10.17
Options exercisable at year-end		89,877		$	10.58		3.59	$	—		103,553		$	10.20		101,220		$	10.32
Shares available for grant		229,209									219,033					216,033

        The Company's unvested options vested in 2011 and 2010. The total fair value of the options vested during 2011 and 2010 was $26,000 and $60,000 respectively. Total compensation cost recognized in 2010 was approximately $42,000 respectively. There was no compensation cost recognized during 2012 and 2011.