Quarterly report pursuant to Section 13 or 15(d)

COMMON AND PREFERRED STOCK

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COMMON AND PREFERRED STOCK
9 Months Ended
Sep. 30, 2013
COMMON AND PREFERRED STOCK [Abstract]  
COMMON AND PREFERRED STOCK
NOTE 5 COMMON AND PREFERRED STOCK

The Company's Articles of Incorporation authorize the issuance of up to 100,000,000 shares. The shares are classified in two classes, consisting of 95,000,000 shares of common stock, par value $.001 per share, and 5,000,000 shares of preferred stock, par value $.001 per share. The board of directors is authorized to establish one or more series of preferred stock, setting forth the designation of each such series, and fixing the relative rights and preferences of each such series. The Company has neither designated nor issued any shares of preferred stock.

Common Stock

The following is a schedule of changes in the number of common stock during the nine months ended September 30, 2013 and the year ended December 31, 2012:

 
 
Nine Months Ended
September 30, 2013
 
 
Year Ended
December 31, 2012
 
Beginning Balance
 
 
63,532,622
 
 
 
63,330,421
 
Stock Based Compensation
 
 
43,029
 
 
 
-
 
Stock Options Exercised
 
 
-
 
 
 
10,500
 
Restricted Stock Grants (Note 6)
 
 
299,401
 
 
 
890,379
 
Stock Repurchased
 
 
(2,036,383
)
 
 
-
 
Other Surrenders
 
 
(41,994
)
 
 
(698,678
)
Ending balance
 
 
61,796,675
 
 
 
63,532,622
 

2013 Activity

The Company's Chief Executive Officer receives shares of common stock as compensation in lieu of any cash base salary. For the nine months ended September 30, 2013, the Company issued 43,029 shares valued at $608,430 to the Chief Executive Officer as compensation in lieu of any cash base salary.

In the nine months ended September 30, 2013, 4,297 shares of common stock were surrendered by certain employees of the Company to cover tax obligations in connection with their restricted stock awards. The total value of these shares was approximately $64,000, which was based on the market price on the date the shares were surrendered.

In the nine months ended September 30, 2013, 37,697 shares of restricted common stock were surrendered by employees who terminated employment with the Company.

Stock Repurchase Program

In May 2011, the Company's board of directors approved a stock repurchase program to acquire up to $150 million of the Company's outstanding common stock. The stock repurchase program allows the Company to repurchase its shares from time to time in the open market, block transactions and in negotiated transactions.

During the third quarter of 2013, the Company repurchased 2,036,383 shares of its common stock under the stock repurchase program. These shares are now included in the Company's pool of authorized but unissued shares. This stock had a cost of approximately $26.1 million. The Company's accounting policy upon the repurchase of shares is to deduct its par value from Common Stock and to reflect any excess of cost over par value as a deduction from Additional Paid-in Capital.