12.

Capital Stock

Common Stock

The Company is authorized to issue 50,000,000 shares of common stock, par value $0.01 per share. At December 31, 2011, there were 19,408,512 shares of common stock issued and 18,150,262 shares outstanding.

Preferred Stock

Shareholders approved an amended Certificate of Formation for the Company on June 15, 2010 under which the Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. At December 31, 2011, there were no shares of preferred stock outstanding.

Amendment to Certificate of Formation

On June 15, 2010, our shareholders approved an amendment to our Certificate of Formation. Among other things, the amendment eliminated the following classes of capital stock:

(a) Non-voting common stock (5,000,000 shares authorized),

(b) Series A preferred stock (1,500,000 shares authorized of which 862,924 shares were canceled and not eligible for reissue),

(d) Convertible preferred stock (300,000 shares designated Series C and 200,000 shares designated as Series D),

(e) Series E preferred stock (500,000 shares authorized of which 317,744 shares were canceled and not eligible for reissue),

(f) Junior preferred stock (10,000,000 shares authorized).

No shares of these classes of capital stock were outstanding at December 31, 2011 or 2010. No shares of these classes of capital stock were issued in the three year period ended December 31, 2011. Effective December 31, 2009, all outstanding shares of Series C preferred stock and Series D preferred stock were redeemed and canceled.