Note 12 - Equity Compensation

12 Months Ended

Oct. 01, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

12.  EQUITY COMPENSATION

In January 2007, the Board adopted the 2007 Equity Incentive Plan (“2007 Plan”), which was approved by shareholders in February 2007.  The 2007 Plan authorizes the Board to grant stock-based compensation awards to our officers, directors and key employees for up to 250,000 shares of Company common stock.  Awards may be in the form of restricted stock, non-restricted stock, restricted stock units, options or stock appreciation rights (SARs).  Total awards under the 2007 Plan may not exceed 250,000 shares, of which no more than 75,000 shares may be in the form of restricted stock, non-restricted stock or restricted stock units.  The per share exercise prices of options or SARs granted under the 2007 Plan must be no less than the fair market value of a share on the grant date.  The terms and conditions of each award may be set by the Board or a committee of the Board.  The 2007 Plan will expire on December 31, 2016 unless terminated earlier in accordance with the plan.

In March 1997, the Board adopted the 1997 Stock Option Plan (“1997 Plan”).  The 1997 Plan authorized the Board to grant options to our key officers and employees for up to 200,000 shares of our common stock.  Options granted under the 1997 Plan are generally granted at the fair market value on the date of grant.  These options become exercisable and vest at the greater of 1,000 shares per year or 20% of the grant.  Options expire 10 years from the date of grant for continuing employees, or three months after termination of employment for employees who leave the Company.  The 1997 Plan expired by its terms on October 20, 2007.  The expiration of the plan does not affect options outstanding under the plan, but no further options can be granted under the 1997 Plan.

In November 1991, the Board adopted the 1991 Stock Option Plan (“1991 Plan”).  The 1991 Plan authorized the Board to grant options for up to 200,000 shares of Company common stock to our officers and key employees and 50,000 shares to directors who are neither officers nor employees of the Company.  All other terms and conditions of the 1991 Plan are similar to the 1997 Plan.  The 1991 Plan expired by its terms on November 7, 2001.  The expiration of the plan does not affect options outstanding under the plan, but no further options can be granted under the 1991 Plan.

Shown below is a summary of activity under the Company’s three stock option plans.

				Outstanding					Exercisable
							Weighted				Weighted
							Average				Average
	Shares			Number of			Ex. Price		Number of		Ex. Price
	Available			Shares			Per Share		Shares		Per Share
Balance at 9/27/08		250,000			190,770		$	6.57		189,802	$	6.55
Fiscal Year 2009
Granted		(22,500	)		22,500			9.34
Exercised					(645	)		9.67
Forfeited					(1,289	)		9.88
Balance at 10/3/09		227,500			211,336			6.83		200,336		6.69
Fiscal Year 2010
Granted
Exercised					(57,547	)		4.91
Forfeited					(2,582	)		10.52
Balance at 10/2/10		227,500			151,207			7.50		148,207		7.46
Fiscal Year 2011
Granted		(37,000	)		37,000			14.90
Exercised					(28,645	)		4.01
Forfeited
Balance at 10/1/11		190,500			159,562		$	9.84		130,962	$	8.74

Shown below is a summary of stock options outstanding and exercisable at fiscal year-end 2011.

	Outstanding						Exercisable
					Weighted
			Weighted		Average				Weighted
			Average		Remaining				Average
Ranges of Exercise	Number of		Ex. Price		Contract		Number of		Ex. Price
Prices	Shares		Per Share		Life (yrs)		Shares		Per Share
$ 4.30  - $  6.18		39,385	$	5.44		1.0		39,385	$	5.44
9.18  -    9.67		62,846		9.41		5.2		62,846		9.41
10.52  -   14.90		57,331		13.35		6.7		28,731		11.80
$ 4.30  - $14.90		159,562	$	9.84		4.7		130,962	$	8.74

The total compensation cost related to non-vested awards not yet recognized at October 1, 2011 was approximately $164,000.

The Board of Directors adopted a stock purchase incentive plan in February 2000.  The 2000 Restricted Stock Plan was created to encourage our management employees to purchase and hold Span-America common stock.  Plan benefits are paid in shares of Company common stock.  Benefits earned and accrued under the plan were $5,318 in 2011, $7,788 in 2010, and $3,749 in 2009.  We issued stock valued at $5,318 in 2011, leaving a vested balance of $5,318 at October 1, 2011.  The plan expired by its terms in February 2010.