Note 13 - Equity Compensation

12 Months Ended

Sep. 29, 2012

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

13.  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 2007 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 were 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.

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

				Outstanding					Exercisable
	Shares Available			Number of Shares			Weighted Average Ex. Price Per Share		Number of Shares		Weighted Average Ex. Price Per Share
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
Fiscal Year 2012
Granted
Exercised					(15,741	)
Forfeited
Balance at 9/29/12		190,500			143,821		$	10.44		123,621	$	9.71

Shown below is a summary of stock options outstanding and exercisable at fiscal year-end 2012.

			Outstanding						Exercisable
Ranges of Exercise Prices			Number of Shares		Weighted Average Ex. Price Per Share		Weighted Average Remaining Contract Life (yrs)		Number of Shares		Weighted Average Ex. Price Per Share
$ 6.18	-	$  6.18		23,894	$	6.18		0.4		23,894	$	6.18
9.18	-	9.67		62,596		9.41		4.2		62,596		9.41
10.52	-	14.90		57,331		13.35		5.7		37,131		12.50
$ 6.18	-	$14.90		143,821	$	10.44		4.2		123,621	$	9.71

The total compensation cost related to non-vested awards not yet recognized at September 29, 2012 was $73,722.

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 $2,470 in 2012, $5,318 in 2011, and $7,788 in 2010.  We issued stock valued at $5,318 in 2012, leaving a vested balance of $2,470 at September 29, 2012.  The plan expired by its terms in February 2010.