14.	EMPLOYEE STOCK PLANS

In May of 2007, our stockholders approved the 2007 Omnibus Incentive Compensation Plan to provide incentives and awards for directors, officers, and employees. “Awards” as defined in the Plan includes, with limitations, stock options (including restricted stock options), restricted stock awards, stock appreciation rights, performance shares, stock awards and cash awards, all on a stand-alone, combination, or tandem basis. The 2007 Omnibus Incentive Compensation Plan replaces the 1997 Stock Incentive Plan, which expired February of 2007. A total of 525,000 of our common shares outstanding were reserved for issuance under the Plan, of which 105,476 were available to be granted as of December 31, 2014.

Stock Options – Of the 358,073 options outstanding at December 31, 2014, 6,042 were issued under the 1997 Stock Incentive Plan and 352,031 were issued under the 2007 Omnibus Incentive Compensation Plan. All options outstanding at December 31, 2014 are incentive stock options with a term of ten years, 315,571 of which vest 20% each year on the anniversary date of the grant and 42,502 of which vest 16.67% each year. The following table summarizes activity relating to stock options:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2011		35,100		$	14.07
Granted		294,803			12.97
Exercised		(14,117	)		7.15
Forfeited or expired		(7,941	)		12.97
Outstanding at December 31, 2012		307,845		$	13.36
Granted		131,280			15.82
Exercised		(6,155	)		11.10
Forfeited or expired		(328	)		20.88
Outstanding at December 31, 2013		432,642		$	14.13
Granted		17,500			18.99
Exercised		(49,560	)		12.97
Forfeited or expired		(42,509	)		16.24
Outstanding at December 31, 2014		358,073		$	14.28		7.81	$	1,094,000
Exercisable at December 31, 2012		20,983		$	18.72
Exercisable at December 31, 2013		70,457			14.81
Exercisable at December 31, 2014		109,691			13.98		7.33	$	368,000

A summary of changes in unvested options for the period ended December 31, 2014 is as follows:

	Number of Options			Weighted Average Grant Date Fair Value
Unvested options outstanding, beginning of year		362,185		$	4.84
Granted		17,500			5.77
Vested		(100,755	)		4.67
Forfeited		(30,548	)		5.19
Unvested options outstanding, end of year		248,382		$	4.93

As of December 31, 2014 there was a total of $1.0 million in unrecognized compensation cost related to nonvested share-based compensation arrangements. The total amount of options expensed during the years ended December 31, 2014, 2013 and 2012 was $442,000, $308,000 and $150,000, respectively.

The fair value of each option granted is estimated on the grant date using the Black-Scholes Option Pricing Model. This model requires management to make certain assumptions, including the expected life of the option, the risk free rate of interest, the expected volatility, and the expected dividend yield. The risk free rate of interest is based on the yield of a U.S. Treasury security with a similar term. The expected volatility is based on historic volatility over a term similar to the expected life of the options. The dividend yield is based on the current yield at the date of grant. The following weighted average assumptions were made in estimating the fair value of the options granted in 2014 and 2013:

	2014			2013
Risk free rate of interest		1.7	%		1.3	%
Expected volatility		39.2	%		47.4	%
Dividend yield		1.9	%		2.1	%
Average expected life (in years)		5			5
Weighted-average grant-date fair value	$	5.77		$	5.59

The total intrinsic value of the options exercised was $217,000, $41,000, and $130,000 for the years ended December 31, 2014, 2013, and 2012, respectively.

Restricted Stock Awards – On June 30, 2010, the Compensation Committee (formerly the Personnel Committee) of the Board of Directors of the Company made grants of 22,047 shares of restricted stock under the Company’s 2007 Omnibus Incentive Compensation Plan to certain officers and employees of the Company. The restricted shares of stock, which are subject to the terms of a Restricted Stock Grant Agreement between the Company and each recipient, fully vested on June 30, 2013. Prior to vesting, the recipient was entitled to vote the shares and received the dividends as declared by the Company with respect to its common stock. Compensation expense for restricted stock was based on the fair value of the restricted stock awards at the time of the grant, which was equal to the market value of the Company’s common stock on the date of grant. The value of the restricted stock grants was amortized monthly into compensation expense over the three year vesting period.

The restricted shares had a fair value of $12.77 per share on the date of issuance. For the year ended December 31, 2013 and 2012, compensation expense of $21,000 and $57,000, respectively, was recognized related to non-vested restricted stock awards.