NOTE 12 – EMPLOYEE BENEFITS

The Company sponsors a 401(k) plan which covers substantially all employees.  Employees may elect to contribute to the plan up to the maximum percentage of compensation and dollar amount subject to statutory limitations.  Beginning January 1, 2013, the Company’s contribution was set using a matching formula of 100% of the first 3% of employee contributions and 50% of employee contributions in excess of 3%, up to 5%.  The Company’s contributions were approximately $684,000, $673,000 and $665,000 for 2017, 2016 and 2015, respectively.

The Company sponsors an Employee Stock Purchase Plan which covers substantially all employees.  Employees are allowed to direct the Company to withhold payroll dollars and purchase Company stock at market price on a payroll by payroll basis.  The Company has reserved 210,000 shares of common stock to be issued under the plan.  The plan allows for shares to be issued directly from the Company or purchased on the open market.