Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

3. Stock-Based Compensation

2006 Incentive Plan

On March 24, 2011, the Company’s Board of Directors approved an amendment and restatement of the 2006 Equity Incentive Plan (now called the 2006 Incentive Plan), which included an increase in the number of shares available for issuance thereunder by 250,000 shares.  The amendment and restatement was ratified by shareholders at the 2011 Annual Stockholders’ meeting held on May 24, 2011.  All references in this footnote 3 to the 2006 Incentive Plan and the number of shares reserved for issuance and available for future issuance thereunder include the effect of the amendment and restatement.

The Company’s 2006 Incentive Plan provides for the grant or issuance to officers, directors, employees and consultants of options with terms of up to ten years, restricted stock, issuances of stock bonuses or other stock-based awards, covering up to 500,000 shares of common stock.  As of June 30, 2011, 275,450 shares remained available for future grant under the 2006 Incentive Plan.

The Company granted stock unit awards (SUAs) covering 59,000 shares of common stock on May 24, 2011.  There were no previously granted awards that terminated during the first six months of 2011.  Historically, the SUAs vest over a period of two years for non-employee board members and four years for employees and are convertible into an equivalent number of shares of the Company’s common stock provided that the director or employee receiving the award remains continuously employed throughout the vesting period.  The Company records compensation expense related to the SUAs on a straight-line basis over the vesting term of the SUAs.  Employees are issued shares upon vesting, net of tax withholdings, unless the employee chooses to receive all shares and pay for the associated employment taxes.  No other types of equity-based awards have been granted or issued under the 2006 Incentive Plan.

A summary of activity for SUAs under the Company’s 2006 Incentive Plan for the six months ended June 30, 2011 is as follows:

	Number of Shares			Aggregate Intrinsic Value (1)
					(000s)
Unvested, December 31, 2010		94,700
Granted		59,000
Forfeited/Expired		(8,406	)
Converted to common stock		(26,194	)
Unvested, June 30, 2011		119,100		$	1,133
Available for grant, June 30, 2011		275,450

(1) The aggregate intrinsic value on this table was calculated based on the closing market value of the Company’s stock on June 30, 2011 ($9.51).

Expired Plans

As of June 30, 2011, the Company also had outstanding an aggregate of 275,821 options to acquire common stock under plans that had previously expired.  A summary of stock option activity for the Company’s expired stock option plans for the six months ended June 30, 2011 is as follows:

	Number of Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (2)
								(000s)
Outstanding, December 31, 2010		289,371		$	13.96
Granted		-			-
Exercised		-			-
Terminated/Expired		(13,550	)	$	19.13
Outstanding, June 30, 2011		275,821		$	13.71	3.3 years	$	14
Exercisable, June 30, 2011		275,821		$	13.71	3.3 years	$	14
Available for grant, June 30, 2011		-

(2) The aggregate intrinsic value on this table was calculated based on the amount, if any, by which the closing market value of the Company’s stock on the June 30, 2011 ($9.51) exceeded the exercise price of the underlying options, multiplied by the number of shares subject to each option.

All Stock-Based Compensation Plans

As of June 30, 2011, a total of 670,371 shares of common stock were reserved for issuance under the various stock option and stock-based plans including the previously expired plans.  As of June 30, 2011, the unamortized fair value of awards relating to outstanding SUAs and options was $1.0 million, which is expected to be expensed over a weighted average period of 3.2 years.