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STOCK OPTIONS AND AWARDS | 12 Months Ended
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Dec. 30, 2017
STOCK OPTIONS AND AWARDS [Abstract] |
STOCK OPTIONS AND AWARDS | 6. Stock Options and Awards Stock Options The Company accounts for its stock based awards in accordance with Accounting Standards Codification subtopic 718-10, Compensation ("ASC 718-10"), which requires a fair value measurement and recognition of compensation expense for all share-based payment awards made to its employees and Directors, including employee stock options and restricted stock awards. The Company estimates the fair value of granted stock options using the Black-Scholes valuation model. This model requires the Company to make estimates and assumptions including, without limitation, estimates regarding the length of time an employee will retain vested stock options before exercising them, the estimated volatility of the Company's common stock price and the number of options that will be forfeited prior to vesting. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Changes in these estimates and assumptions can materially affect the determination of the fair value of stock-based compensation and consequently, the related amount recognized in the Company's consolidated statements of operations. The Company used several assumptions which included an expected term of 3.5 years, volatility deviation of 22.6% and a risk free rate of 1.47%. As of December 30, 2017, the Company had one stock option plan, The Eastern Company 2010 Executive Stock Incentive Plan (the "2010 Plan"), for officers, other key employees, and non-employee Directors. Incentive stock options granted under the 2010 Plan must have exercise prices that are not less than 100% of the fair market value of the Company's common stock on the dates the stock options are granted. Restricted stock awards may also be granted to participants under the 2010 Plan with restrictions determined by the Compensation Committee of the Company's Board of Directors. Under the 2010 Plan, non-qualified stock options granted to participants will have exercise prices determined by the Compensation Committee of the Company's Board of Directors. During 2017, 25,000 shares were granted but not issued and during the year of 2016, no stock options or restricted stock were granted that were subject to the meeting of performance measurements. The 2010 Plan also permits the issuance of Stock Appreciation Rights ("SARs"). The SARs are in the form of an option with a cashless exercise price equal to the difference between the fair value of the Company's common stock at the date of grant and the fair value as of the exercise date resulting in the issuance of the Company's common stock. During 2017, the Company issued 149,500 SARs and during 2016 no SARs were issued. Stock-based compensation expense in connection with SARs granted to employees during fiscal year 2017 was approximately $172,806. As of December 30, 2017, there were 333,500 shares of common stock reserved and available for future grant under the above noted 2010 Plan. The following tables set forth the outstanding SARs for the period specified:
|  | Year Ended December 30, 2017 |  |  | Year Ended December 31, 2016 |
|  | Units |  |  | Weighted - Average Exercise Price |  |  | Units |  |  | Weighted - Average Exercise Price |
Outstanding at beginning of period |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Issued |  |  | 149,500 |  |  |  | 20.39 |  |  |  | — |  |  |  | — |
Forfeited |  |  | (8,000 | ) |  |  | 21.10 |  |  |  | — |  |  |  | — |
Outstanding at end of period |  |  | 141,500 |  |  |  | 20.36 |  |  |  | — |  |  |  | — |
SARs Outstanding and Exercisable |
Range of Exercise Prices |  |  | Outstanding as of December 30, 2017 |  |  | Weighted- Average Remaining Contractual Life |  |  | Weighted- Average Exercise Price |  |  | Exercisable as of December 30, 2017 |  |  | Weighted- Average Remaining Contractual Life |  |  | Weighted- Average Exercise Price |
$ | 19.10-21.10 |  |  |  | 141,500 |  |  |  | 4.2 |  |  | $ | 20.36 |  |  |  | — |  |  |  | — |  |  |  | — |
The following tables set forth the outstanding stock grants for the period specified:
|  | Year Ended December 30, 2017 |  |  | Year Ended December 31, 2016 |
|  | Shares |  |  | Weighted - Average Exercise Price |  |  | Shares |  |  | Weighted - Average Exercise Price |
Outstanding at beginning of period |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Issued |  |  | 25,000 |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at end of period |  |  | 25,000 |  |  |  | — |  |  |  | — |  |  |  | — |
Stock Grants Outstanding and Exercisable |
Range of Exercise Prices |  |  | Outstanding as of December 30, 2017 |  |  | Weighted- Average Remaining Contractual Life |  |  | Weighted- Average Exercise Price |  |  | Exercisable as of December 30, 2017 |  |  | Weighted- Average Remaining Contractual Life |  |  | Weighted- Average Exercise Price |
$ | 0.00 |  |  |  | 25,000 |  |  |  | 5.0 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
As of December 30, 2017, outstanding SARs and options had an intrinsic value of $1,484,375.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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