NOTE 15 – STOCK INCENTIVE PLANS

During 2005, the stockholders approved the 2004 Equity Incentive Plan (the “2004 Plan”) to provide equity incentives to selected persons. Awards may be granted to employees, officers, directors, consultants and advisors of the Company or subsidiary. Awards granted under the 2004 Plan may be either stock options or restricted stock awards and are designated at the time of grant. Options granted under the 2004 Plan to directors, consultants and advisors are non-qualified stock options. Options granted to officers and other employees may be incentive stock options or non-qualified stock options. Restricted stock awards may be made to any plan participant. As of December 31, 2013, there were 4,144 shares available for future grants under the 2004 Plan.

During 2013, the stockholders approved the 2013 Equity Incentive Plan (the “2013 Plan”) to provide equity incentives to selected persons. Awards may be granted to employees, officers, directors, consultants and advisors of the Company or subsidiary. Awards granted under the 2013 Plan may be either stock options or restricted stock awards and are designated at the time of grant. Restricted stock awards may be made to any plan participant. As of December 31, 2013, there were 300,000 shares available for future grants under the 2013 Plan.

Information regarding the Company's restricted stock grants activity for the years ended December 31, 2013 and 2012 are as follows:


	2013			2012
			Weighted			Weighted
			Average			Average
	Number of		Grant Date	Number of		Grant Date
	Shares		Fair Value	Shares		Fair Value

Unvested restricted stock, beginning of year	123,144	$	4.83	115,729	$	4.86
Granted	32,940		6.06	37,496		4.97
Forfeited	-		-	(2,234)		5.27
Vested	(30,162)		4.95	(27,847)		5.15
Unvested restricted stock, end of period	125,922	$	4.98	123,144	$	4.83

Total stock-based compensation related to restricted stock awards was $236 thousand and $153 thousand for the years ended December 31, 2013 and December 31, 2012, respectively. As of December 31, 2013 and 2012, there were $438 thousand and $477 thousand, respectively, of unrecognized compensation cost related to non-vested restricted stock awards which is expected to be recognized over a weighted average period of 2.3 years and 3.0 years.

During 1995, the stockholders approved a stock option plan for nonemployee directors and employees (the “1995 Plan”) and in 2001 the stockholders approved the 2001 Stock Option Plan (the “2001 Plan”) to provide equity incentives to employees, officers and directors. Both of these plans expired ten years following their approval, and therefore, at December 31, 2013 there were no authorized shares left to be granted in either plan.

Options granted under the 2001 Plan and the 2004 Plan to officers and other employees and which are incentive stock options, are subject to limitations under Section 422 of the Internal Revenue Code. The option price under each such grant shall not be less than the fair market value on the date of the grant. No option will be granted for a term in excess of ten years. The Company established a vesting schedule that must be satisfied before the options may be exercised.

As of December 31, 2013, there are 10,001 options outstanding which will expire between January 2014 and October 2014 under the 1995 Plan and 22,748 options outstanding under the 2001 Plan which will expire between January 2014 and October 2015. There were no options outstanding under the 2004 Plan at December 31, 2013.

Stock option transactions under all plans are summarized as follows:


			Weighted
			Average	Weighted
			Exercise	Average	Aggregate
	Number of		Price per	Contractual	Intrinsic
	Shares		Share	Term	Value

Outstanding, December 31, 2011	111,034	$	12.25
Options expired	(9,089)		9.12
Options forfeited	(46,194)		12.60
Outstanding, December 31, 2012	55,751		12.48
Options expired	(18,933)		8.93
Options forfeited	(4,069)		14.27
Outstanding, December 31, 2013	32,749	$	14.31	0.7	-
Exercisable, December 31, 2013	32,749	$	14.31	0.7	-

The following table summarizes information about stock options outstanding and exercisable at December 31, 2013:


		Weighted
Exercise	Number	Average Remaining	Number
Price	Outstanding	Life (Years)	Exercisable

12.63	6,708	1.8	6,708
13.39	6,361	1.1	6,361
14.67	14,090	0.0	14,090
16.45	5,590	0.8	5,590
	32,749	0.7	32,749

There were no stock options exercised during 2013 and options outstanding and exercisable had no intrinsic value at December 31, 2013.