STOCK OPTIONS

Incentive Options

On May 3, 2005, the stockholders of the Company approved the 2005 Incentive Stock Option Plan (“2005 ISO Plan”) and the Company reserved 500,000 shares of common stock for options to be issued under the 2005 ISO Plan . During the years ended December 31, 2014, 2013 and 2012, options to purchase 48,250 shares, 49,000 shares and 61,000 shares, respectively, were granted under this plan. Each option becomes vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year.

Following is a summary of activity in the Incentive Stock Option Plans for the periods indicated:



	2014				2013				2012
	Shares		Exercise Price*		Shares		Exercise Price*		Shares		Exercise Price*
Options outstanding at beginning of year	292,350		$	26.68	330,730		$	21.82	377,480		$	19.27
Granted	48,250		52.67		49,000		42.70		61,000		32.76
Exercised	(27,700	)	24.33		(81,880	)	16.77		(99,650	)	19.26
Canceled	(11,100	)	35.42		(5,500	)	24.24		(8,100	)	17.20
Options outstanding at end of year	301,800		30.73		292,350		26.68		330,730		21.82
Options exercisable at end of year	172,450		$	22.30	154,950		$	21.57	192,830		$	19.48
Options available for grant at end of year	28,950				66,100				109,600

*Weighted Averages

Options outstanding and exercisable at December 31, 2014 were as follows:



Qualified Stock Options	Options Outstanding				Options Exercisable
	Shares	Remaining Contractual Life (yrs)*	Exercise Price*		Shares	Exercise Price*
Range of Exercise Price
$11.45 - $19.79	56,550	3.93	$	12.33	56,550	$	12.33
$22.39 - $42.70	197,500	5.74	$	30.70	115,900	$	27.16
$49.44 - $53.51	47,750	9.42	$	52.66	—	$	—
Total	301,800				172,450

*Weighted Averages

The weighted-average grant-date fair values of options granted during 2014, 2013, and 2012 were $27.23, $20.56 and $14.76, respectively. As of December 31, 2014, there was $1,673,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of five years.

Non-Qualified Options

On May 3, 2001, the stockholders of the Company approved the First Amended and Restated 1999 Non-Qualified Stock Option Plan ("FAR 1999 NQSO Plan") to add non-employee directors as eligible persons to receive grants of stock options. The Company reserved 400,000 shares of common stock for options to be issued under this plan. Options become vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year. No further option grants can be made under this plan.

On May 7, 2009, the stockholders of the Company approved the 2009 Equity Incentive Plan and the Company reserved 400,000 shares of common stock for this plan. Options become vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year.

Following is a summary of activity in the Non-Qualified Stock Option Plans for the periods indicated:



	2014				2013			2012
	Shares		Exercise Price*		Shares	Exercise Price*		Shares		Exercise Price*
Options outstanding at beginning of year	114,700		$	24.87	89,700	$	19.91	112,800		$	18.62
Granted	29,000		53.51		25,000	42.70		—		—
Exercised	(11,600	)	23.29		—	—		(23,100	)	13.62
Cancelled	—		—		—	—		—		—
Options outstanding at end of year	132,100		31.30		114,700	24.87		89,700		19.91
Options exercisable at end of year	71,100		$	19.85	57,900	$	19.89	38,100		$	21.91
Options available for grant at end of year	258,526				293,526			322,750

*Weighted Averages

Options outstanding and exercisable as of December 31, 2014 were as follows:



Non-Qualified Stock Options	Options Outstanding				Options Exercisable
	Shares	Remaining Contractual Life (yrs)*	Exercise Price*		Shares	Exercise Price*
Range of Exercise Price
$11.45	35,600	4.36	$	11.45	35,600	$	11.45
$22.39 - $42.70	67,500	6.33	32.23		35,500	28.28
$53.51	29,000	9.37	$	53.51	—	$	—
Total	132,100				71,100

*Weighted Averages

The weighted-average grant-date fair values of options granted during 2014 and 2013 were $27.72 and $20.56, respectively. There were no options granted in 2012. As of December 31, 2014, there was $115,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of five years.

During 2014, 2013 and 2012, 11,600, 0, and 23,100 non-qualified options were exercised, respectively, $270,000, $0, and $315,000 of cash receipts were received, respectively, and tax deductions of $262,000, $0, and $284,000 were realized, respectively, for the tax deductions from option exercises.

Restricted Stock Units

Following is a summary of activity in the Restricted Stock Units for the periods indicated:



	2014				2013				2012
	Shares		Exercise Price*		Shares		Exercise Price*		Shares		Exercise Price*
Options outstanding at beginning of year	10,724		$	32.49	11,375		$	24.24	19,750		$	22.96
Granted	6,000		53.51		4,224		42.70		—		—
Exercised	(4,681	)	29.56		(4,875	)	22.07		(6,125	)	21.13
Cancelled	—		—		—		—		(2,250	)	21.45
Options outstanding at end of year	12,043		44.10		10,724		32.49		11,375		24.24

*Weighted Averages

Restricted stock units vest 25% after one year following the award date and for an additional 25% of total awarded shares each succeeding year until fully vested. The weighted-average remaining contractual life in years for 2014, 2013, and 2012 were 2.39, 2.09 and 2.65, respectively. As of December 31, 2014, there was $121,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of four years.