NOTE D--STOCK-BASED COMPENSATION

The Company has various stock-based compensation plans. During the quarter ended January 31, 2013, the Company did not grant any stock compensation awards to employees or non-employee directors. During the nine months ended January 31, 2013, the Board of Directors of the Company approved grants of non-statutory stock options and performance-based restricted stock units to key employees and grants of service-based restricted stock units to key employees and non-employee directors. The employee non-statutory stock option grants totaled 125,000 shares of the Company’s common stock with an exercise price of $17.62 per share. The options vest evenly over a three-year period and have a ten-year contractual term. The employee performance-based restricted stock units totaled 129,075 units and the employee and non-employee director service-based restricted stock units totaled 63,025 units. The performance-based restricted stock units entitle the recipients to receive one share of the Company’s common stock per unit granted if applicable performance conditions are met and the recipient remains continuously employed with the Company until the units vest. The service-based units entitle the recipients to receive one share of the Company’s common stock per unit granted if they remain continuously employed with the Company until the units vest. All of the Company’s restricted stock units granted to employees cliff-vest three years from the grant date. The service-based restricted stock units granted to non-employee directors vest daily through the end of the two-year vesting period as long as the recipient continuously remains a member of the Board

For the three- and nine-month periods ended January 31, 2013 and 2012, stock-based compensation expense was allocated as follows:


	Three Months Ended				Nine Months Ended
	January 31,				January 31,
(in thousands)		2013		2012		2013		2012
Cost of sales and distribution	$	159	$	117	$	467	$	415
Selling and marketing expenses		224		162		654		551
General and administrative expenses		504		494		1,527		1,640
Stock-based compensation expense	$	887	$	773	$	2,648	$	2,606