STOCK OPTIONS

Incentive Options

On May 7, 2015, the stockholders of the Company approved the 2015 Incentive Stock Option Plan (“2015 ISO Plan”) and the Company reserved 400,000 shares of common stock for options to be issued under the 2015 ISO Plan. During the years ended December 31, 2016 and December 31, 2015, options to purchase 21,000 and 29,500, respectively, shares 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.

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 year ended December 31, 2014, options to purchase 48,250 shares 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. No further option grants can be made under this plan as of 2015.

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



	2016				2015				2014
	Shares		Exercise Price*		Shares		Exercise Price*		Shares		Exercise Price*
Options outstanding at beginning of year	254,195		$	34.64	301,800		$	30.73	292,350		$	26.68
Granted	21,000		54.87		29,500		53.95		48,250		52.67
Exercised	(43,775	)	26.59		(75,355	)	26.11		(27,700	)	24.33
Canceled	(10,600	)	50.68		(1,750	)	53.61		(11,100	)	35.42
Options outstanding at end of year	220,820		37.39		254,195		34.64		301,800		30.73
Options exercisable at end of year	136,220		$	29.66	143,345		$	25.69	172,450		$	22.30
Options available for grant at end of year	353,450				370,750				28,950

*Weighted Averages

Options outstanding and exercisable at December 31, 2016 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 - $22.55	44,320	2.03	$	15.08	44,320	$	15.08
$24.69 - $42.70	96,350	5.30	$	34.07	73,750	$	32.64
$49.44 - $54.87	80,150	8.21	$	53.72	18,150	$	53.17
Total	220,820				136,220

*Weighted Averages

The weighted-average grant-date fair values of options granted during 2016, 2015, and 2014 were $27.48, $27.63 and $27.23, respectively. As of December 31, 2016, there was $1,302,000 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 as of 2009.

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:



	2016				2015				2014
	Shares		Exercise Price*		Shares		Exercise Price*		Shares		Exercise Price*
Options outstanding at beginning of year	127,300		$	32.05	132,100		$	31.30	114,700		$	24.87
Granted	—		—		—		—		29,000		53.51
Exercised	(14,900	)	13.73		(4,800	)	11.45		(11,600	)	23.29
Canceled	—		—		—		—		—		—
Options outstanding at end of year	112,400		34.48		127,300		32.05		132,100		31.30
Options exercisable at end of year	85,000		$	29.61	83,100		$	24.54	71,100		$	19.85
Options available for grant at end of year	207,608				232,522				258,526

*Weighted Averages

Options outstanding and exercisable as of December 31, 2016 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 - $22.55	18,400	2.36	$	11.45	18,400	$	11.45
$24.69 - $42.70	65,000	4.51	32.50		55,000	30.65
$49.44 - $54.87	29,000	7.37	$	53.51	11,600	$	53.51
Total	112,400				85,000

*Weighted Averages

The weighted-average grant-date fair value of options granted during 2014 were $27.72. There were no options granted in 2015 or 2016. As of December 31, 2016, there was $53,000 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 2016, 2015, and 2014, 14,900, 4,800, and 11,600 non-qualified options were exercised, respectively, $205,000, $55,000, and $270,000 of cash receipts were received, respectively, and tax deductions of $657,000, $187,000, and $262,000 were realized, respectively, for the tax deductions from option exercises.

Restricted Stock Awards

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



	2016				2015				2014
	Shares		Exercise Price*		Shares		Exercise Price*		Shares		Exercise Price*
Options outstanding at beginning of year	32,616		$	53.31	12,043		$	44.10	10,724		$	32.49
Granted	27,440		55.17		26,004		54.14		6,000		53.51
Exercised	(11,909	)	52.67		(5,431	)	36.85		(4,681	)	29.56
Canceled	(2,526	)	53.57		—		—		—		—
Options outstanding at end of year	45,621		54.58		32,616		53.31		12,043		44.10

*Weighted Averages

Restricted stock awards 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 2016, 2015, and 2014 was 2.89, 3.11 and 2.39, respectively. As of December 31, 2016, there was $1,959,000 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.