STOCK OPTIONS

3 Months Ended

Jan. 02, 2016

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

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 Stock Option Plan is the Company’s only equity compensation plan currently in effect. Under the 2010 Stock Option 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 ten years after the date of grant.

A summary of stock option activity is presented below:

	2016
	Shares			Weighted Average Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding, beginning of period		523,800		$	20.29	6.1 Years
Options:
Granted		—
Exercised		(100	)	$	14.40
Canceled or expired		—
Outstanding and expected to vest, end of period		523,700		$	20.29	5.9 Years	$	2,341,031
Exercisable, end of period		422,200		$	19.76	5.3 Years	$	2,266,936

Compensation cost charged to operations for the 13-week periods ended January 2, 2016 and December 27, 2014 was $104,000 and $105,000, respectively. The compensation cost recognized is classified as a general and administrative expense in the Consolidated Condensed Statements of Income.

As of January 2, 2016, there was approximately $183,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of approximately 0.5 years.