On February 20, 2019, the Compensation Committee and the Board of Directors of the Company adopted the 2019 Incentive Award Plan (the “2019 Plan”), to replace the Company’s 2008 Omnibus Incentive Plan (“2008 Plan”), which expired in March 2018. The 2019 Plan was approved during the second quarter of 2019 and authorizes 1,500,000 shares to be available for award grants.


Stock Options	Number of Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value as of Date Listed (in thousands)
Options outstanding at December 30, 2017	19,435	$	7.33	1.23	$	280
Exercised	(16,675)	$	7.33
Options outstanding at December 29, 2018	2,760	$	7.33	0.24	$	41
Exercised	(2,760)	$	7.33
Options outstanding at December 28, 2019	—	$	—	—	$	—

Annually, the Company grants restricted shares to its Board of Directors. The shares become fully vested one year from their grant date. The fair value of each restricted stock grant is based on the closing price of the Company's common stock on the date of grant. The Company amortizes the expense over the service period, which is the fiscal year in which the award is granted. In addition, the Company may grant restricted shares to certain members of management based on their services and contingent upon continued service with the Company. The restricted shares vest over a period of approximately three years from the grant date. The fair value of each restricted stock grant is based on the closing price of the Company's common stock on the date of grant.

On April 13, 2018, the Company granted 350,000, of which 90,417 have been forfeited, shares of restricted stock to certain members of Management as part of a Special Incentive Program. The number of shares granted may be increased up to 454,271 shares depending on the Company’s level of performance with regard to certain market conditions. Up to 454,271 shares may vest on April 13, 2022, depending on the satisfaction of certain service and market conditions.


			Compensation Expense
(thousands, except share amounts)					For the Fiscal Years Ended,					Unrecognized Expense as of,
Recipient of Grant	Grant Date	Restricted Shares	2019	2018	2017	December 28, 2019		December 29, 2018


Members of Management	February, 2017	146,564	$367	$439	$360	$	—	$	385
Chief Executive Officer	February, 2017	500,000	723	1,194	1,112	506		1,230
Board of Directors	April, 2017	14,980	—	—	241	—		—
Members of Management	February, 2018	116,958	562	549	—	615		1,176
Special Incentive Grant	April, 2018	350,000	1,120	1,436	—	3,428		6,633
Board of Directors	May, 2018	13,800	—	285	—	—		—
Board of Directors	May, 2019	10,590	285	—	—	—		—
Members of Management	May, 2019	23,560	202	367	—	458		—

In February 2017, as part of Mr. Recatto's employment agreement, the Company granted a restricted stock award of 500,000 shares of common stock, which vests through January 2021 in an amount based on the vesting table below, with the common stock price increase to be determined based on the increase in the price of the Company’s common stock (if any) from the closing price of the common stock as reported by Nasdaq on the employment commencement date ($15.00) and the common stock price on the potential vesting date (determined by using the weighted average closing price of a share of the Company's common stock for the 90-day period ending on the vesting date). If the stock price does not increase by $5.00, then

no shares shall vest. In fiscal 2019, the Company recorded approximately $0.7 million of compensation expense related to this award. In the future, the Company expects to recognize compensation expense of approximately $0.5 million over the remaining requisite service period, which ends January 31, 2021. The fair value of this restricted stock award as of the grant date was estimated using a Monte Carlo simulation model. Key assumptions used in the Monte Carlo simulation to estimate the grant date fair value of this award are a risk-free rate of 1.70%, expected dividend yield of zero, and an expected volatility assumption of 41.73%.

Vesting Table

Increase in Stock Price From the Employment Commencement Date to the Vesting Date

Total Percentage of Restricted Stock Shares to Be Vested

Less than $5 per share increase

—%

$5 per share increase

25%

$10 per share increase

50%

$15 per share increase

75%

$20 or more per share increase

100%

If the weighted average closing price of the Company's common stock increases by the marginal levels set forth in the above vesting table for 180 consecutive days during any period between the award date and final vesting date, Mr. Recatto shall become vested in 50% of the corresponding total percentage of restricted shares earned on the last day of the 180 day period. The remaining 50% of the corresponding shares will vest upon satisfaction of the service conditions at the end of the final vesting date in January 2022.


Restricted Stock (Nonvested Shares)	Number of Shares	Weighted Average Grant-Date Fair Value Per Share
Nonvested shares outstanding at December 30, 2017	685,999	$	14.52
Granted	480,755	21.81
Vested	(149,710)	14.57
Forfeited	(3,181)	17.75
Nonvested shares outstanding at December 29, 2018	1,013,863	$	18.20
Granted	34,150	26.54
Vested	(158,372)	16.52
Forfeited	(105,062)	22.01
Nonvested shares outstanding at December 28, 2019	784,579	$	18.39

The Employee Stock Purchase Plan of 2008 ("ESPP") is a shareholder approved plan under which all employees regularly scheduled to work 20 or more hours per week may purchase the Company’s common stock through payroll deductions at a price equal to 95% of the fair market values of the stock as of the end of the first day following each three-month offering period. An employee’s payroll deductions under the ESPP are limited to 10% of the employee’s regular earnings, and employees may not purchase more than $25,000 of stock during any calendar year.

As of December 28, 2019, the Company had reserved 109,585 shares of common stock available for purchase under the ESPP. In fiscal 2019, employees purchased 19,677 shares of the Company’s common stock with a weighted average fair market value of $25.82 per share.