COMPENSATION PLANS

9 Months Ended

Sep. 26, 2015

NOTE 8 - COMPENSATION PLANS

In April 2007, the Company adopted and the shareholders approved the 2007 Stock Incentive Plan (the “2007 SIP”) under which employees, independent contractors, and non-employee directors may be granted stock options, restricted stock, deferred stock awards, and stock appreciation rights, any of which may or may not require the satisfaction of performance objectives. Vesting requirements are determined by the Compensation Committee of the Board of Directors. The Company has reserved 2,550,000 shares for issuance under the 2007 SIP, of which 543,200 shares remain available for future grants as of September 26, 2015.

Compensation costs related to all share-based payments recognized in the statements of operations aggregated $1.1 million and $3.4 million for the three and nine months ended September 26, 2015, respectively, and $1.4 million and $4.2 million for the three and nine months ended September 27, 2014, respectively.

Stock Options

A summary of changes in options outstanding under the plans is summarized below:

	Shares			Weighted Average Exercise Price		Grant Date Fair Value
Outstanding at December 31, 2014		40,977		$	8.82	$	6.29
Granted		—			—		—
Exercised		(17,250	)	$	8.24	$	4.00
Expired		—			—		—
Outstanding at September 26, 2015		23,727		$	9.24	$	7.96

The aggregate intrinsic value (mean market price at September 26, 2015 less the weighted average exercise price) of options outstanding under the plans was approximately $1.2 million.

Restricted Stock Units

Beginning in the second quarter of 2009, the Company began granting restricted stock units to senior employees in lieu of incentive stock options. The vesting of these awards is dependent on the achievement of corporate objectives established by the Compensation Committee of the Board of Directors. Beginning in 2011, a three year vesting period was added to the performance criteria, which had the effect of requiring both the achievement of the corporate performance objectives and the satisfaction of the vesting period.

There were no restricted stock units issued in the three months ended September 26, 2015. For the nine months ended September 26, 2015, there were 85,272 restricted stock units issued. Total compensation costs related to these restricted stock units are $2.4 million. These costs are being recognized ratably over vesting periods ranging from three to five years. Total compensation cost related to restricted stock units was $1.1 million and $3.4 million for the three and nine months ended September 26, 2015, respectively, and $1.4 million and $4.2 million for the three and nine months ended September 27, 2014, respectively.