Note 9. Benefit Plans

Stock Incentive Plans

On May 1, 2012, the Company's shareholders approved the 2012 Equity Incentive Plan (the "2012 Plan"). The 2012 Plan authorizes the grant of up to 2,000,000 stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units and other awards for the purpose of providing the Company's non-employee directors, consultants, officers and other employees incentives and rewards for superior performance. As of December 31, 2012, no awards had been made under the 2012 Plan. During 2012, the Company's 1992 Incentive Plan, 1996 Director Stock Option Plan and 2002 Incentive Plan (the "2002 Plan") were terminated or expired pursuant to their terms with respect to the grant of additional awards thereunder. During the years ended December 31, 2012 and 2011, no awards were made under any of these plans. As of December 31, 2012, an aggregate of seventeen employees and officers held unexpired, unexercised options issued previously under the 2002 Plan. No awards were outstanding under the other expired plans.

A summary of the status of the Company's stock options at December 31, 2012 and 2011 is as follows:

	2012					2011
Options	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Options outstanding, beginning of year		231,000		$	1.68		543,500		$	1.44
Options exercised		(150,000	)		1.73		(177,500	)		1.25
Options canceled or expired		(4,000	)		1.59		(135,000	)		1.26
Options outstanding, end of year		77,000			1.59		231,000			1.68
Options exercisable		77,000			1.59		231,000			1.68
Options available for future grant		2,000,000					2,666,406

Data on options outstanding and exercisable at December 31, 2012 is as follows:

				Outstanding and Exercisable
Range of Exercise Prices		Number of Options		Weighted Average Remaining Life (Years)		Weighted Average Exercise Price
$	1.51 to $2.00		77,000		0.34	$	1.59

The fair value of options granted is determined on the date of grant using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including the expected volatility of the stock price.

401(k) Plan

The Company initiated an employees' savings plan (the "Plan") qualified under Section 401(k) of the Internal Revenue Code in May 1995. The Plan covers substantially all of the Company's employees. Effective January 1, 2009, the Company modified the Plan such that the Plan would operate on a safe harbor basis. Under the Plan, employees may defer up to 50% of their compensation, not to exceed the annual deferral limit. The Company's total matching contribution for 2012 and 2011 was $153 and $157, respectively, and consisted of a contribution equal to 50% of up to the first 4% of each participant's contributions. In addition to the matching contribution, the Company also provided a 3% safe harbor non-elective contribution in 2012 and 2011 of $302 and $280, respectively. The employer match and contribution were made in cash.

Agent Stock Purchase Plan

The Company initiated a nonqualified stock purchase plan (the "Agent Stock Purchase Plan") in May 2012. The purpose of the Agent Stock Purchase Plan is to promote and advance the interests of the Company and its stockholders by providing independent agents who qualify as participants with an opportunity to purchase the common stock of the Company. Under the Agent Stock Purchase Plan, payment for shares of common stock of the Company is made by either deduction from an agent's commission payment or a direct cash payment. Stock purchases are made at the end of each calendar quarter at the then current market value. The Company pays the sales commissions, if any, associated with such purchases.