Note 10 — Stock Compensation Plans

In May 2017, Shareholders approved the Escalade, Incorporated 2017 Incentive Plan (2017 Incentive Plan), which is an incentive plan for key employees, directors and consultants with various equity-based incentives as described in the plan document. The 2017 Incentive Plan is a replacement for the 2007 Incentive Plan, which expired at the end of April 2017. All options issued and outstanding under the expired plans will remain in effect until exercised, expired or forfeited.

The 2017 Incentive Plan is administered by the Board of Directors or a committee thereof, which is authorized to determine, among other things, the key employees, directors or consultants who will receive awards under the plan, the amount and type of award, exercise prices or performance criteria, if applicable, and vesting schedules. Under the original terms of the plan and subject to various restrictions contained in the plan document, the total number of shares of common stock which may be issued pursuant to awards under the Plan may not exceed 1,661,598.

Restricted Stock Units

During 2019, and pursuant to the 2017 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 8,839 shares of common stock. In 2019, the Company awarded 11,400 restricted stock units to directors and 35,900 restricted stock units to employees. The restricted stock units awarded to directors time vest over two years (one-half one year from grant date and one-half two years from grant date) provided that the director is still a director of the Company at the vesting date. Director restricted stock units are subject to forfeiture, except for termination of services as a result of retirement, death or disability, if on the vesting date the director no longer holds a position with the Company. The 2019 restricted stock units awarded to employees are subject to a three year cliff vesting schedule, which means that these restricted stock units will fully vest, if at all, three years from the grant date provided that the employee is still employed by the Company on the vesting date. In addition, vesting of certain of the restricted stock units is subject to the Company meeting certain conditions based on Return on Equity and Adjusted EBITDA.

A summary of restricted stock unit activity is as follows:


		Weighted
	Number of	Average Grant
	Shares	Date Fair Value

Non-vested stock units as of December 30, 2017	103,076	$	11.92
Granted	74,528		12.39
Vested	(47,358)		12.34
Forfeited	(4,259)		11.65
Non-vested stock units as of December 29, 2018	125,987	$	12.05
Granted	47,300		11.54
Vested	(28,888)		12.40
Forfeited	(15,763)		12.08
Non-vested stock units as of December 28, 2019	128,636	$	11.78

When vesting is dependent on certain market criteria, the fair value of restricted stock units is determined by the use of Monte Carlo techniques. The market price of the Company’s stock on the grant date is used to value restricted stock units where vesting is not contingent on market criteria. In 2019, 2018, and 2017 the Company recognized $505 thousand, $591 thousand, and $504 thousand respectively in compensation expense related to restricted stock units and as of December 28, 2019 and December 29, 2018, there was $622 thousand and $754 thousand respectively, of unrecognized compensation expense related to restricted stock units.

Stock Options

Total compensation expense recorded in the statements of operations for 2019, 2018 and 2017 relating to stock options was $8 thousand, $13 thousand and $18 thousand, respectively. As of December 28, 2019 and December 29, 2018, there was $5 thousand and $13 thousand respectively, of total unrecognized compensation costs related to stock options. These costs are expected to be recognized over a weighted average period of 1.0 years. No stock options were awarded during 2019, 2018 or 2017.

The following table summarizes option activity for each of the three years ended 2019:


	Incentive Stock Options		Director Stock Options
	Granted	Outstanding	Granted	Outstanding

2019	—	20,000	—	—
2018	—	20,000	—	15,000
2017	—	29,250	—	15,000

The following table summarizes stock option transactions for the three years ended 2019:


	2019			2018				2017
		Option			Option				Option
	Shares	Price		Shares	Price		Shares		Price

Outstanding at beginning of year	35,000		$11.86 to $14.39	44,250		$5.85 to $14.39		72,375		$5.28 to $14.39
Issued during year	—		—	—		—		—		—
Canceled or expired	(5,000)	$	11.86	—				—
Exercised during year	(10,000)	$	11.86	(9,250)	$	5.85		(28,125)		$5.28 to $5.85
Outstanding at end of year	20,000	$	14.39	35,000		$11.86 to $14.39		44,250		$5.85 to $14.39
Exercisable at end of year	6,666			15,000				24,250
Weighted-average fair value of options granted during the year	—			—				—

The total intrinsic value of options exercised was $0.0 million, $0.1 million and $0.2 million for 2019, 2018 and 2017, respectively.

The following table summarizes information about stock options outstanding at December 28, 2019:

Options Outstanding

Options Exercisable

Weighted-Average

Range of

Number of

Remaining

Weighted-Average

Number of

Weighted-Average

Exercise Prices

Contractual Life

Exercise Price

14.39

20,000

2.17 years

14.39

6,666

14.39

During the year ended December 28, 2019, the following activity occurred under the Company’s stock option plan:


		Weighted Average
	Number of	Grant Date Fair
	Options	Value

Nonvested balance, beginning of year	20,000	$	2.52
Granted	—		—
Vested	(6,666)	$	2.52
Forfeited	—		—
Nonvested balance, end of year	13,334	$	2.52