STOCK OPTIONS

9 Months Ended

Jul. 02, 2011

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

9. STOCK OPTIONS

The Company has options outstanding under two stock option plans, the 2004 Stock Option Plan (the “2004 Plan”) and the 2010 Stock Option Plan (the “2010 Plan”), which was approved by shareholders in the second quarter of 2010. Effective with this approval, the Company terminated the 2004 Plan. This action terminated the 400 authorized but unissued options under the 2004 Plan but it did not affect any of the options previously issued under the 2004 Plan. Options granted under the 2004 Plan are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted. The options expire ten years after the date of grant.

The 2010 Plan is the Company’s only equity compensation plan currently in effect. Under the 2010 Plan, 500,000 options were authorized for future grant. Options granted under the 2010 Plan are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted. The options expire six years after the date of grant. No options have been granted under the 2010 Plan and no options were granted during the 39 weeks ended July 2, 2011.

A summary of stock option activity is presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Fair Value		Weighted Average Contractual Term		Aggregate Intrinsic Value
Outstanding, October 2, 2010		421,064		$	22.88	$	6.87		6.5 years
Granted		—
Exercised		(3,964	)	$	12.04	$	3.53
Forfeited/Cancelled		(20,500	)	$	26.13	$	7.58
Outstanding and expected to vest at July 2, 2011		396,600		$	22.82	$	6.84		5.8 years	$	589,655
Exercisable at July 2, 2011		396,600		$	22.82	$	6.84		5.8 years	$	589,655

Compensation cost is recognized on a straight-line basis over the vesting period during which employees perform related services. As of July 2, 2011, all compensation cost related to stock options has been recognized.

Compensation cost for stock options is included in general and administrative expenses in the Company’s consolidated condensed statements of operations. Compensation cost for stock options was approximately $190,000 and $458,000 for the 39-week periods ended July 2, 2011 and July 3, 2010, respectively, and $34,000 and $145,000 for the 13-week periods ended July 2, 2011 and July 3, 2010, respectively.