11.	Share-Based Compensation

At July 4, 2015, the Company had three share-based employee compensation plans. The Company measures the fair value of share-based awards, if and when granted, based on the Black-Scholes method and using the closing market price of the Company’s common stock on the date of grant. Awards vest over periods ranging from one to three years and expire within 10 years of issuance. Share-based compensation expense related to awards is amortized in accordance with applicable vesting periods using the straight-line method. Share-based compensation expense of $611 and $368 was recognized for the twenty-six week

periods ended July 4, 2015 and June 28, 2014, respectively.

As of July 4, 2015, the Company had approximately $1.5 million of total unrecognized compensation cost related to all non-vested share-based awards granted under the Company’s various share-based plans, which the Company expects to recognize over approximately a three-year period. These amounts do not include the cost of any additional share-based awards that may be granted in future periods or reflect any potential changes in the Company’s forfeiture rate.

Incentive S

hare-Based

Plans

2000 Employee Stock Incentive Plan (the 2000 Plan)

The 2000 Plan, approved by the Company’s stockholders in April 2001, provided for the issuance of up to 1,500,000 shares of the Company’s common stock to officers and key employees of the Company and its subsidiaries or consultants and advisors utilized by the Company. As of July 4, 2015, options to purchase 25,000 shares of common stock granted under the 2000 Plan were outstanding.

2007 Omnibus Equity Compensation Plan (the 2007 Plan)

The 2007 Plan, approved by the Company’s stockholders in June 2007, provides for the issuance of up to 700,000 shares of the Company’s common stock to officers, non-employee directors, employees of the Company and its subsidiaries or consultants and advisors utilized by the Company. As of July 4, 2015, under the 2007 Plan, no shares of common stock were available for future grants and options to purchase 24,500 shares of common stock, as well as 296,667 restricted stock units, were outstanding.

The 2000 and 2007 Plans are expired and therefore no shares are available for grant thereunder.

2014 Omnibus Equity Compensation Plan (the 2014 Plan)

The 2014 Plan, approved by the Company’s stockholders in December 2014, provides for the issuance of up to 625,000 shares of the Company’s common stock to officers, non-employee directors, employees of the Company and its subsidiaries or consultants and advisors utilized by the Company. The Compensation Committee of the Board of Directors determines the vesting period at the time of grant. As of July 4, 2015, under the 2014 Plan, 200,000 restricted stock units were outstanding and 425,000 shares were available for awards thereunder.

Stock Options

There were no options granted during the twenty-six week

period ended July 4, 2015 and 15,000 options granted during the twenty-six week

period ended June 28, 2014. Activity regarding outstanding options for the twenty-six week period ended July 4, 2015 is as follows:

	All Stock Options Outstanding
	Shares				Weighted Average Exercise Price
Options outstanding as of January 3, 2015			53,000		$	7.65
Options granted			0
Options exercised			(3,500)		$	4.30
Options forfeited/cancelled			0

Options outstanding as of July 4, 2015			49,500		$	7.88

Options outstanding price range at July 4, 2015		$5.27	-	$9.81	$	7.88

Options exercisable as of July 4, 2015			27,000		$	9.47

Intrinsic value per share of outstanding stock options as of July 4, 2015			$1

Intrinsic value per share of stock options exercised for the thirteen week period ended July 4, 2015			$8

As of July 4, 2015 the Company did not have any unrecognized compensation cost related to non-vested stock option awards.

Restricted Stock

Units

From time-to-time the Company issues restricted stock units. These restricted stock units typically include dividend accrual equivalents, which means that any dividends paid by the Company during the three year vesting period become due and payable after the three year vesting period assuming the grantee’s restricted stock unit fully vests. Dividends for these grants are accrued on the dividend payment dates and included in accounts payable and accrued expenses on the accompanying consolidated balance sheet. Dividends for restricted stock units that ultimately do not vest are forfeited.

To date, the Company has only issued restricted stock units under the 2007 and 2014 Plans. The following summarizes activity in the restricted stock units under the 2007 and 2014 Plans during 2015:

	Number of Restricted Stock Units (in thousands)		Weighted Average Grant Date Fair Value per Share
Outstanding non-vested at January 3, 2015		500	$	6.61
Granted		-		-
Vested		3	$	6.61
Forfeited or expired		-		-
Outstanding non-vested at July 4, 2015		497	$	6.61

Based on the closing price of the Company’s common stock of $5.69 per share on July 2, 2015 (the last trading day prior to July 4, 2015), the intrinsic value of the non-vested restricted stock units at July 4, 2015 was approximately $2.8 million. As of July 4, 2015, there was approximately $1.5 million of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over three years.

Employee Stock Purchase Plan

The Company implemented the 2001 Employee Stock Purchase Plan with stockholder approval, effective January 1, 2001. Such Plan was subsequently amended, pursuant to stockholder approval where required, effective June 18, 2009 and September 16, 2009 (the 2001 Employee Stock Purchase Plan, as so amended, the “Purchase Plan”). Under the Purchase Plan, employees meeting certain specific employment qualifications are eligible to participate and can purchase shares of common stock semi-annually through payroll deductions at the lower of 85% of the fair market value of the stock at the commencement or end of the offering period. The purchase plan permits eligible employees to purchase shares of common stock through payroll deductions for up to 10% of qualified compensation. The Company has two offering periods in the Purchase Plan coinciding with the Company’s first two fiscal quarters and the last two fiscal quarters. Actual shares are issued on the first day of the subsequent offering period for the prior offering period payroll deductions. The number of shares issued at the beginning of the current period (as of January 5, 2015) was 32,940. As of July 4, 2015, there were 89,544 shares available for issuance under the Purchase Plan.