STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2011

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

9. STOCKHOLDERS' EQUITY

Stock Option Plans

In July 1997, the Company's stockholders approved a stock option plan (the “1997 Plan”) for eligible key employees, directors, independent agents, and consultants who make a significant contribution toward the Company's success and development and to attract and retain qualified employees which expired in July 2007. Under the 1997 Plan, qualified incentive stock options and non-qualified stock options may be granted to purchase up to an aggregate of 500,000 shares of the Company's common stock, subject to certain anti-dilution provisions. The exercise price per share of common stock may not be less than 100% (110% for qualified incentive stock options granted to stockholders owning at least 10% of common shares) of the fair market value of the Company's common stock on the date of grant. In general, the options vest and become exercisable in four equal annual installments following the date of grant, although the Company's board of directors, at its discretion, may provide for different vesting schedules. The options expire ten years (five years for qualified incentive stock options granted to stockholders owning at least 10% of common shares) after such date. The Company filed with the Securities and Exchange Commission a Registration Statement on Form S-8 for the 1997 Plan on September 26, 1997 to register these securities. In accordance with terms of the 1997 Plan, no options were granted ten years after the effective date of the 1997 Plan, or July 2007. In July 2007, approximately 231,000 stock options expired unissued, and there are no shares available for grant remaining under the 1997 Plan.  As of December 31, 2011 there were 9,000 options outstanding under the 1997 Plan.

In August 2001, the Company's stockholders approved a stock option plan (the “2001 Plan”), with terms similar to the 1997 Plan. The 2001 Plan authorizes the granting of awards of up to an aggregate of 750,000 shares of the Company's common stock, subject to certain anti-dilution provisions. On December 16, 2003, stockholders approved an amendment to the 2001 Plan, which increased the number of shares authorized for grant from 750,000 shares to 1,750,000 shares, an increase of 1,000,000 shares. On June 17, 2009, our stockholders approved an amendment to the 2001 Plan to extend the term of the 2001 Plan from April 6, 2011 to April 23, 2019 and to authorize an additional 300,000 shares of our common stock for issuance under the 2001 Plan.  A total of 2,050,000 shares of common stock are now authorized for issuance under the amended 2001 Plan.  The Company filed with the Securities and Exchange Commission a Registration Statement on Form S-8 for the 2001 Plan on October 5, 2007 and on July 15, 2009 as amended to register these securities. As of December 31, 2011 options to purchase 1,261,425 shares of common stock were outstanding under the 1997 Plan and 2001 Plan, and a total of 269,098 shares available for grant remaining under the 2001 Plan.

The summary of the stock options activity is as follows for year ended:

	Shares			Weighted Average Exercise Price
Outstanding at December 31, 2010		1,346,425		$	7.81
2011
Options granted		-			-
Options exercised		(85,000	)		0.97
Options canceled or expired		--			--
Outstanding at end of year		1,261,425			8.27
Options exercisable at year end		1,163,925			7.16
Shares available for future grant		269,098			--

The Company did not grant any stock options during 2011.

The following table summarizes information relating to stock options by exercise price at December 31, 2011:

Option		Outstanding		Weighted Average Life		Weighted Average		Exercisable		Weighted Average Option
Exercise Price		Shares		(years)		Exercise Price		Shares		Price
$	0.83-2.00		576,925		3.76	$	1.01		576,925	$	1.01
	4.00-6.00		257,000		5.42		4.69		257,000		4.69
	13.00-14.00		125,000		6.38		13.51		117,500		13.53
	17.00-18.99		70,000		6.93		17.69		50,000		17.48
	19.00-21.00		112,500		6.75		20.57		62,500		20.23
	26.00-28.00		45,000		7.69		26.43		45,000		26.43
	29.00-31.00		75,000		7.88		29.53		55,000		29.64
			1,261,425		5.18	$	8.27		1,163,925	$	7.16

We did not grant any stock options during 2011. The weighted-average grant-date fair value for options granted during 2009 was $24.43 per share. During the 2011, 2010 and 2009, $82,450, $673,375 and $380,029 were received from stock options exercised by employees, respectively. The aggregate intrinsic value of options outstanding and exercisable as of December 31, 2011 was approximately $11.0 million. Aggregate intrinsic value represents the total pre-tax intrinsic value, based on the closing price of our common stock of $16.62 on December 30, 2011, which would have been received by the option holders had all option holders exercised their options as of that date. Total unrecognized compensation cost related to non-vested stock options outstanding as of December 31, 2011 was approximately $0.2 million which we expect to recognize over a weighted-average period of 1.5 years.