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Note 16 - Stock Option and Purchase Plans
 12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

(16)         Stock Option and Purchase Plans


The Company’s stock compensation program provides for the grant of restricted stock (including performance-based restricted stock), unrestricted stock, stock options and stock appreciation rights. A total of 3,000,000 shares of common stock were reserved for issuance under the 2004 Equity Plan. On May 11, 2010, the 2004 Equity Plan was replaced with the 2010 Sypris Omnibus Plan. A total of 3,655,088 shares of common stock were registered for issuance under the 2010 Omnibus Plan. Additionally, awards under the 2004 Plan that are cancelled without having been fully exercised or vested are available again for new awards under the 2010 Omnibus Plan. The aggregate number of shares available for future grant as of December 31, 2014 and 2013 was 1,052,021 and 1,551,521, respectively.


The 2004 Equity Plan provides for restrictions which lapse after one, two, three or four years for certain grants or for certain other shares, one-third of the restriction is removed after three, five and seven years, respectively. The 2010 Omnibus Plan provides for restrictions which lapse after three years. During the restricted period, which is commensurate with each vesting period, the recipient has the right to receive dividends and voting rights for the shares. Generally, if a recipient leaves the Company before the end of the restricted period or if performance requirements, if any, are not met, the shares will be forfeited.


The Company has certain stock compensation plans under which options to purchase common stock may be granted to officers, key employees and non-employee directors. Options may be granted at not less than the market price on the date of grant. Stock option grants under the 2004 Equity Plan include both six and ten year lives along with graded vesting over three, four and five years of service. Stock option grants under the 2010 Omnibus Plan include a five year life along with vesting after three years of service.


Compensation expense is measured based on the fair value at the date of grant and is recognized on a straight-line basis over the vesting period. Fair value for restricted shares is equal to the stock price on the date of grant, while the fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing method. The Company uses historical Company and industry data to estimate the expected price volatility, the expected option life, the expected forfeiture rate and the expected dividend yield. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option.


The following weighted average assumptions were used to estimate the fair value of options granted using the Black-Scholes option-pricing model:


      Year ended December 31,   
      2014        2013   

Expected life (years)

    4.0       4.0  

Expected volatility

    53.3

%

    81.1

%

Risk-free interest rates

    1.73

%

    0.77

%

Expected dividend yield

    2.67       1.97  

A summary of the restricted stock activity is as follows:


            Weighted  
           

Average

 
    Number of    

Grant Date

 
    Shares    

Fair Value

 

Nonvested shares at January 1, 2014

    978,715     $ 4.00  

Granted

    283,000       2.80  

Vested

    (274,814 )     4.16  

Forfeited

    (98,000 )     3.72  

Nonvested shares at December 31, 2014

    888,901     $ 3.60  

The total fair value of shares vested during 2014 and 2013 was $773,000 and $1,344,000, respectively. In conjunction with the vesting of restricted shares and payment of taxes thereon, the Company received into treasury 98,251 and 114,552 restricted shares, respectively, at an average price of $2.81 and $4.22 per share, respectively, the closing market price on the date the restricted stock vested. Such repurchased shares were immediately cancelled.


The following table summarizes option activity for the year ended December 31, 2014:


            Weighted-     Weighted-          
           

average

    average     Aggregate  
    Number of    

Exercise Price

   

Remaining

    Intrinsic  
    Shares    

Per Share

    Term     Value  

Outstanding at January 1, 2014

    1,075,400     $ 3.95                  

Granted

    294,000       2.80                  

Exercised

    (201,589 )     2.56                  

Forfeited

    (37,500 )     3.52                  

Expired

    (74,311 )     6.74                  

Outstanding at December 31, 2014

    1,056,000     $ 3.72       2.85     $ 15,000  

Exercisable at December 31, 2014

    233,000     $ 4.16       1.20     $ 14,800  

The weighted average grant date fair value based on the Black-Scholes option pricing model for options granted in the years ended December 31, 2014 and 2013 was $0.99 and $2.08 per share, respectively. There were 201,589 and 208,000 options exercised in 2014 and 2013, respectively. The total intrinsic value of options exercised was $417,000 and $488,000 during the years ended December 31, 2014 and 2013, respectively.


As of December 31, 2014, there was $1,395,000 of total unrecognized compensation cost, after estimated forfeitures, related to unvested share-based compensation granted under the plans. That cost is expected to be recognized over a weighted-average period of 0.9 years. The total fair value of option shares vested was $9,000 and $67,000 during the years ended December 31, 2014 and 2013, respectively.