NOTE L

– STOCK OPTIONS

We have, subject to shareholder approval in

February 2018,

a Stock Option Plan (the “Plan”). Pursuant to the Plan, stock options

may

be granted to officers and our key employees which qualify as incentive stock options as well as stock options which are nonqualified. The exercise price of incentive stock options is at least the fair market value of the common stock on the date of grant. The exercise price for nonqualified options is determined by a committee of the Board of Directors. The options are generally exercisable after

three

years and expire

later than

ten

years from date of grant. There were

800,000

shares reserved under the Plan under which

options have yet been issued. There are options that were issued under option plans that have since expired that are still outstanding.

We have an Employee Stock Purchase Plan (“ESPP”) whereby employees purchase stock by making contributions through payroll deductions for

six

month periods. The purchase price of the stock is

85%

of the lower of the market price of the stock at the beginning of the

six

-month period or the end of the

six

-month period. In fiscal years

2017,

2016

and

2015

employees purchased

13,271,

13,747

and

13,648

shares at average purchase prices of

$105.85,

$96.00

and

$86.01,

respectively. ESPP expense of

$363,000,

$305,000

and

$328,000

was recognized for fiscal years

2017,

2016

and

2015,

respectively.

A summary of the status of our stock option plans as of fiscal years

2017,

2016

and

2015

and the changes during the years ended on those dates is represented below:

	Incentive Stock Options					Nonqualified Stock Options
				Weighted-					Weighted-
	Stock			Average		Stock			Average
	Options			Exercise		Options			Exercise
	Outstanding			Price		Outstanding			Price


Balance, September 28, 2014		295,645		$	60.83		249,379		$	53.38
Granted		114,488			100.94		55,152			106.96
Exercised		(70,792	)		47.30		(6,590	)		51.14
Canceled		(6,989	)		84.13		-			-


Balance, September 26, 2015		332,352			77.04		297,941			63.34
Granted		120,450			108.69		58,720			112.35
Exercised		(86,223	)		53.67		(44,777	)		42.53
Canceled		(10,792	)		97.07		-			-

Balance, September 24, 2016		355,787			92.81		311,884			75.56
Granted		121,508			129.35		59,786			129.94
Exercised		(78,114	)		65.49		(60,156	)		41.46
Canceled		(6,200	)		100.93		-			-

Balance, September 30, 2017		392,981		$	109.41		311,514		$	92.58
Exercisable Options September 30, 2017		51,719		$	81.54		137,856		$	62.21

The weighted-average fair value of incentive stock options granted during fiscal years ended

September 30, 2017,

September 24, 2016

and

September 26, 2015

was

$18.84,

$13.94

and

$15.27,

respectively. The weighted-average fair value of non-qualified stock options granted during the fiscal years ended

September 30, 2017,

September 24, 2016

and

September 26, 2015

was

$24.82,

$19.95

and

$21.90,

respectively. The total intrinsic value of stock options exercised was

$10.1

million,

$8.4

million and

$4.8

million in fiscal years

2017,

2016

and

2015,

respectively.

The total cash received from these option exercises was

$5.8

million,

$5.3

million and

$3.1

million in fiscal years

2017,

2016

and

2015,

respectively; and the actual tax benefit realized from the tax deductions from these option exercises was

$3.0

million,

$1.6

million and

$874,000

in fiscal years

2017,

2016

and

2015,

respectively.

The following table summarizes information about incentive stock options outstanding as of

September 30, 2017:

			Options Outstanding						Options Exercisable
			Number		Weighted-				Number
			Outstanding		Average		Weighted-		Exercisable		Weighted-
			at		Remaining		Average		at		Average
Range of			September 30,		Contractual		Exercise		September 30,		Exercise
Exercise Prices			2017		Life		Price		2017		Price
$57.15	-	$81.67		51,219		1.1	$	81.43		51,219	$	81.43
$93.17	-	$137.16		341,762		3.4		113.60		500		93.17
Total options				392,981		3.1		109.41		51,719		81.54

The following table summarizes information about nonqualified stock options outstanding as of

September 30, 2017:

			Options Outstanding						Options Exercisable
			Number		Weighted-				Number
			Outstanding		Average		Weighted-		Exercisable		Weighted-
			at		Remaining		Average		at		Average
Range of			September 30,		Contractual		Exercise		September 30,		Exercise
Exercise Prices			2017		Life		Price		2017		Price
$34.17	-	$47.59		60,000		2.7	$	41.17		60,000	$	41.17
$57.33	-	$81.67		57,856		4.1		72.95		57,856		72.95
$94.24	-	$131.30		193,658		5.5		114.38		20,000		94.24
Total options				311,514		4.7		92.58		137,856		62.21