NOTE 9

STOCK COMPENSATION PLANS

On December 9, 2015, the Company’s stockholders approved the 2015 Equity Compensation Plan, or the 2015 Plan, that replaced the 2005 Equity Compensation Plan, or the 2005 Plan, which expired on May 24, 2015. The 2015 Plan provides that grants may be in any of the following forms: incentive stock options, nonqualified stock options, stock units, stock awards, dividend equivalents and other stock-based awards. The 2015 Plan is administered and interpreted by the Compensation Committee of the Board of Directors, or the Committee. The Committee has the authority to determine the individuals to whom grants will be made under the 2015 Plan, determine the type, size and terms of the grants, determine the time when grants will be made and the duration of any applicable exercise or restriction period (subject to the limitations of the 2015 Plan) and deal with any other matters arising under the 2015 Plan. The Committee presently consists of three directors, each of whom is a non-employee director of the Company. All of the employees of the Company and its subsidiaries are eligible for grants under the 2015 Plan. Non-employee directors of the Company are also eligible to receive grants under the 2015 Plan.

The following summary reflects changes in the shares of Class A Stock under option:

	2018 Shares			2018 Weighted Average Exercise Price		2017 Shares			2017 Weighted Average Exercise Price		2016 Shares			2016 Weighted Average Exercise Price
Plan options
Outstanding at beginning of year		176,802		$	19.91		231,755		$	19.32		270,000		$	19.34
Granted		—			—		—			—		—			—
Exercised		(8,052	)		15.77		(54,953	)		17.42		(38,245	)		19.50
Expired		—			—		—			—		—			—
Outstanding at end of year		168,750		$	20.11		176,802		$	19.91		231,755		$	19.32

Options exercisable at year end		168,750		$	20.11		176,802		$	19.91		231,755		$	19.32

The total intrinsic value of options exercised during 2018, 2017 and 2016 were $176,000, $1,198,000 and $351,000, respectively. During 2018, we received $127,000 in cash from the exercise of options, with a $367,000 tax benefit realized for those options.

The following tables summarize information about employee and director stock options outstanding and exercisable at December 31, 2018:

Options Outstanding and Exercisable
Range of Exercise Price		Shares Outstanding at December 31, 2018		Weighted Average Remaining Life	Weighted Average Exercise Price		Aggregate Intrinsic Value
$	15.26 - 18.61		67,500	2.27 Years	$	18.48	$	1,106,663
$	18.62 - 22.66		101,250	4.03 Years	$	21.19	$	1,384,763

As of December 31, 2018, there was no unrecognized expense related to non-vested option shares granted under the Plan.

The following summary reflects changes in the shares of Class A Stock Restricted Stock Awards (RSA):

	2018 Shares			2018 Weighted Average Grant Date Fair Value		2017 Shares			2017 Weighted Average Grant Date Fair Value		2016 Shares		2016 Weighted Average Exercise Price
Plan RSA’s
Outstanding at beginning of year		5,000		$	38.10		5,000		$	27.70		—	$	—
Granted		5,000			38.51		11,568			38.08		5,000		27.70
Vested/Released		(5,000	)		38.10		(11,568	)		33.58		—		—
Cancelled		—			—		—			—		—		—
Unvested Outstanding at end of year		5,000		$	38.51		5,000		$	38.10		5,000	$	27.70

On May 2, 2018, 5,000 shares of Class A Stock were granted as restricted stock awards. The fair value per share was $38.51, the closing price of the Class A Stock as recorded on the NASDAQ Global Select Market on May 2, 2018. Prior to their release date, these restricted stock awards may be subject to forfeiture in the event of the recipient’s termination of service.

On June 28, 2017, 6,568 shares of Class A Stock were issued as fully vested restricted stock awards. The fair market value per share was $38.06, the closing price of the Class A Stock as recorded on the NASDAQ Global Select Market on June 28, 2017.

On May 3, 2017, 5,000 shares of Class A Stock, were granted as restricted stock awards. The fair value per share was $38.10, the closing price of the Class A Stock as recorded on the NASDAQ Global Select Market on May 3, 2017. The restricted shares vested one year from the date of grant.

On May 4, 2016, 5,000 shares of Class A Stock were granted as restricted stock awards. The fair market value per share was $27.70, the closing price of the Class A Stock as recorded on the NASDAQ Global Select Market on May 4, 2016. The restricted shares vested one year from the date of grant.

As of December 31, 2018, there was $63,800 total unrecognized expense related to non-vested awards of restricted shares awarded under the 2015 Plan. The cost will be recognized over 0.33 years, the remaining vesting period for the restricted stock awards.

The total intrinsic value of awards released during 2018 was approximately $191,000.