NOTE 7 – STOCK-BASED COMPENSATION

Stock Option Plans

The Company has a 1994 Stock Option Plan, a 2002 Stock Option Plan, a 2005 Stock Option Plan, a 2008 Stock Option Plan and a 2011 Stock Option Plan for the benefit of certain directors, officers, and key employees. Under these plans, 6,350,000 shares of authorized common stock have been reserved for issuance pursuant to grants approved by the Compensation and Stock Option Committee of the Board of Directors. Stock options granted under these plans have a maximum duration of 10 years and may be subject to certain vesting requirements, which are generally five years. Restricted stock granted under these plans is generally for directors and certain key officers with vesting requirements of up to three years. Stock options and restricted stock granted under these plans are priced at the market value of the Company's common stock on the date of the grant. At September 30, 2011, there were 1,737,244 shares available for grant under the plans.

Stock based compensation is recognized as provided under FASB ASC Topic 718-10 and FASB ASC Topic 505-50. FASB ASC Topic 718-10 requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense over the requisite service period (generally the vesting period) in the financial statements based on their fair values. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized. Stock option compensation is recognized as an expense over the unvested portion of all stock option awards granted based on the fair values estimated at grant date in accordance with the provisions of FASB ASC Topic 718-10. The Company has applied the Black-Scholes valuation model in determining the fair value of the stock option awards. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated based on historical experience and future expectations.

There were no option grants during the six months ended September 30, 2011 or September 30, 2010.

Option activity for the six months ended September 30, 2011 was as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining ContractualTerm		Aggregated Intrinsic Value

Options outstanding, beginning of year		1,178,600		$	30.02
Granted		-			-
Exercised		(68,700	)		30.14
Forfeited		(17,100	)		31.42
Options outstanding, end of period		1,092,800		$	29.99		6.78	$	28,370,419
Options exercisable, end of period		298,200		$	25.69		3.84	$	9,022,964

The aggregate intrinsic value reflected in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price on September 30, 2011 and the exercise price, multiplied by the number of in-the-money options) that would have been received by option holders had all option holders exercised their options as of September 30, 2011. This amount will change as the stock's market price changes. The total intrinsic value of options exercised during the periods ended September 30, 2011 and 2010 was as follows:

	2011		2010
Three months ended	$	823,957	$	1,353,962
Six months ended	$	2,400,422	$	1,810,018

As of September 30, 2011, total unrecognized stock-based compensation expense related to non-vested stock options amounted to approximately $7.8 million, which is expected to be recognized over a weighted-average period of approximately 3.3 years.

Restricted Stock

On April 29, 2011, the Company granted 10,000 shares of restricted stock (which are equity classified) with a grant date fair value of $67.95 per share to its independent directors. All of the shares granted vested immediately.

On November 8, 2010, the Company granted 29,080 shares of restricted stock (which are equity classified), with a grant date fair value of $43.04 per share, to certain officers. One-third of the restricted stock vested immediately and one-third will vest on November 8, 2011 and 2012, respectively. On that same date, the Company granted an additional 15,871 shares of restricted stock (which are equity classified), with a grant date fair value of $43.04 per share, to certain executive officers. The 15,871 shares will vest on April 30, 2013 based on the Company's compounded annual EPS growth according to the following schedule:

		Compounded
Vesting		Annual
Percentage		EPS Growth
	100%	15% or higher
	67%		12% - 14.99%
	33%		10% - 11.99%
	0%	Below 10%

On April 30, 2010, the Company granted 10,000 shares of restricted stock (which are equity classified) with a grant date fair value of $35.28 per share to its independent directors. All of the shares granted vested immediately.

On November 9, 2009, the Company granted 41,346 shares of restricted stock (which are equity classified), with a grant date fair value of $26.73 per share, to certain officers. One-third of the restricted stock vested immediately, one-third vested on November 9, 2010 and the final third is scheduled to vest on November 9, 2011. On that same date, the Company granted an additional 23,159 shares of restricted stock (which are equity classified), with a grant date fair value of $26.73 per share, to certain executive officers. The 23,159 shares will vest on April 30, 2012 based on the Company's compounded annual EPS growth according to the following schedule:

		Compounded
Vesting		Annual
Percentage		EPS Growth
	100%	15% or higher
	67%		12% - 14.99%
	33%		10% - 11.99%
	0%	Below 10%

On November 10, 2008, the Company granted 50,000 shares of restricted stock (which are equity classified), with a grant date fair value of $16.85 per share, to certain officers. One-third of the restricted stock vested immediately, and one-third vested on November 10, 2009 and 2010, respectively. On that same date, the Company granted an additional 29,100 shares of restricted stock (which are equity classified), with a grant date fair value of $16.85 per share, to certain executive officers. The 29,100 shares will vest on November 10, 2011 based on the Company's compounded annual EPS growth according to the following schedule:

		Compounded
Vesting		Annual
Percentage		EPS Growth
	100%	15% or higher
	67%		12% - 14.99%
	33%		10% - 11.99%
	0%	Below 10%

Compensation expense related to restricted stock is based on the number of shares expected to vest and the fair market value of the common stock on the grant date. The Company recognized approximately $364,000 and $316,000, respectively, of compensation expense for the three months ended September 30, 2011 and 2010 and recognized approximately $1.4 million and $981,000, respectively, for the six months ended September 30, 2011 and 2010 related to restricted stock, which is included as a component of general and administrative expenses in the Company's Consolidated Statements of Operations. All shares are expected to vest.

As of September 30, 2011, there was approximately $939,000 of unrecognized compensation cost related to unvested restricted stock awards granted, which is expected to be recognized over the next 1.5 years.

A summary of the status of the Company's restricted stock as of September 30, 2011, and changes during the six months ended September 30, 2011, are presented below:

	Shares			Weighted Average Fair Value at Grant Date

Outstanding at March 31, 2011		59,836		$	22.62
Granted during the period		10,000			67.95
Vested during the period		(10,000	)		67.95
Cancelled during the period		-			-
Outstanding at September 30, 2011		59,836		$	22.62

Total share-based compensation included as a component of net income during the three months and six months ended September 30, 2011 and 2010 was as follows:

	Three months ended				Six months ended
	September 30,				September 30,
	2011		2010		2011		2010
Share-based compensation related to equity classified units:
Share-based compensation related to stock options	$	797,692		718,616		1,665,962		1,439,513
Share-based compensation related to restricted stock units		364,470		316,031		1,404,478		981,428

Total share-based compensation related to equity classified awards	$	1,162,162		1,034,647		3,070,440		2,420,941