Stock-Based Compensation

12 Months Ended

Jan. 01, 2017

2016 Stock Incentive Plan. In 2016, the Company adopted a stock plan entitled the 2016 Stock Incentive Plan (the “2016 Plan”) and reserved and authorized a total of 4,000,000 shares of common stock for grant thereunder. As of January 1, 2017, 4,000,000 shares were available for future grant or issuance.

2006 Stock Incentive Plan. In 2006, the Company adopted a stock plan entitled the 2006 Stock Incentive Plan, as amended, (the “2006 Plan”) and reserved and authorized a total of 3,300,000 shares of common stock for grant thereunder. On June 9, 2011, the stockholders approved an amendment to the 2006 Plan increasing the number of shares of common stock available for issuance by an additional 1,000,000 shares. The 2006 Plan expired in 2016 and as of January 1, 2017, no shares were available for future grant or issuance under this plan.

On January 15, 2016, the Company granted 319,000 non-vested shares of stock to officers of the Company. These shares vest and become non-forfeitable 25% per year and are being expensed over their four-year vesting period. In addition, during 2016 the Company issued an aggregate of 8,140 non-vested shares of common stock to non-employee directors. The non-vested stock awards vest over five years at the rate of 20% on each anniversary date of the award, provided that the participant has continuously remained a director of the Company.

Stock-based compensation expense for the years ended January 1, 2017, January 3, 2016, and December 28, 2014 was $2.1 million, $1.4 million and $1.2 million, respectively.

A summary of all non-vested share activity for the year ended January 1, 2017 was as follows:



	Shares			Weighted Average Grant Date Price
Nonvested at January 3, 2016	468,770			$	7.40
Granted	327,140			12.28
Vested	$	(218,689	)	6.71
Nonvested at January 1, 2017	$	577,221		10.42

The fair value of the non-vested shares is based on the closing price of the Company's common stock on the date of grant. As of January 1, 2017, total non-vested stock-based compensation expense was approximately $4.5 million and the remaining weighted average vesting period for non-vested shares was 2.6 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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