STOCK OPTIONS

Incentive Options

On May 7, 2015, the stockholders of the Company approved the 2015 Incentive Stock Option Plan (“2015 ISO Plan”) and the Company reserved 400,000 shares of common stock for options to be issued under the 2015 ISO Plan. During the year ended December 31, 2015, options to purchase 29,500 shares were granted under this plan. Each option becomes vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year.

On May 3, 2005, the stockholders of the Company approved the 2005 Incentive Stock Option Plan (“2005 ISO Plan”) and the Company reserved 500,000 shares of common stock for options to be issued under the 2005 ISO Plan. During the years ended December 31, 2015, 2014, and 2013, options to purchase zero shares, 48,250 shares and 49,000 shares, respectively, were granted under this plan. Each option becomes vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year. No further option grants can be made under this plan as of 2015.

Following is a summary of activity in the Incentive Stock Option Plans for the periods indicated:



	2015				2014				2013
	Shares		Exercise Price*		Shares		Exercise Price*		Shares		Exercise Price*
Options outstanding at beginning of year	301,800		$	30.73	292,350		$	26.68	330,730		$	21.82
Granted	29,500		53.95		48,250		52.67		49,000		42.70
Exercised	(75,355	)	26.11		(27,700	)	24.33		(81,880	)	16.77
Canceled	(1,750	)	53.61		(11,100	)	35.42		(5,500	)	24.24
Options outstanding at end of year	254,195		34.64		301,800		30.73		292,350		26.68
Options exercisable at end of year	143,345		$	25.69	172,450		$	22.30	154,950		$	21.57
Options available for grant at end of year	370,750				28,950				66,100

*Weighted Averages

Options outstanding and exercisable at December 31, 2015 were as follows:



Qualified Stock Options	Options Outstanding				Options Exercisable
	Shares	Remaining Contractual Life (yrs)*	Exercise Price*		Shares	Exercise Price*
Range of Exercise Price
$11.45 - $22.39	43,225	2.99	$	12.72	43,225	$	12.72
$22.55 - $42.70	138,970	5.40	$	31.88	91,570	$	29.30
$49.44 - $54.24	72,000	8.83	$	53.12	8,550	$	52.56
Total	254,195				143,345

*Weighted Averages

The weighted-average grant-date fair values of options granted during 2015, 2014, and 2013 were $27.63, $27.23 and $20.56, respectively. As of December 31, 2015, there was $1,713,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of five years.

Non-Qualified Options

On May 3, 2001, the stockholders of the Company approved the First Amended and Restated 1999 Non-Qualified Stock Option Plan ("FAR 1999 NQSO Plan") to add non-employee directors as eligible persons to receive grants of stock options. The Company reserved 400,000 shares of common stock for options to be issued under this plan. Options become vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year. No further option grants can be made under this plan as of 2009.

On May 7, 2009, the stockholders of the Company approved the 2009 Equity Incentive Plan and the Company reserved 400,000 shares of common stock for this plan. Options become vested and exercisable for up to 20% of the total optioned shares one year following the grant of the option and for an additional 20% of the total optioned shares after each succeeding year until the option is fully exercisable at the end of the fifth year.

Following is a summary of activity in the Non-Qualified Stock Option Plans for the periods indicated:



	2015				2014				2013
	Shares		Exercise Price*		Shares		Exercise Price*		Shares	Exercise Price*
Options outstanding at beginning of year	132,100		$	31.30	114,700		$	24.87	89,700	$	19.91
Granted	—		—		29,000		53.51		25,000	42.70
Exercised	(4,800	)	11.45		(11,600	)	23.29		—	—
Cancelled	—		—		—		—		—	—
Options outstanding at end of year	127,300		32.05		132,100		31.30		114,700	24.87
Options exercisable at end of year	83,100		$	24.54	71,100		$	19.85	57,900	$	19.89
Options available for grant at end of year	232,522				258,526				293,526

*Weighted Averages

Options outstanding and exercisable as of December 31, 2015 were as follows:



Non-Qualified Stock Options	Options Outstanding				Options Exercisable
	Shares	Remaining Contractual Life (yrs)*	Exercise Price*		Shares	Exercise Price*
Range of Exercise Price
$11.45 - $22.39	30,800	3.36	$	11.45	30,800	$	11.45
$22.55 - $42.70	67,500	5.33	32.23		46,500	29.59
$49.44 - $54.24	29,000	8.37	$	53.51	5,800	$	53.51
Total	127,300				83,100

*Weighted Averages

The weighted-average grant-date fair values of options granted during 2014 and 2013 were $27.72 and $20.56, respectively. There were no options granted in 2015. As of December 31, 2015, there was $80,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of five years.

During 2015, 2014, and 2013, 4,800, 11,600, and zero non-qualified options were exercised, respectively, $55,000, $270,000, and $0 of cash receipts were received, respectively, and tax deductions of $187,000, $262,000, and $0 were realized, respectively, for the tax deductions from option exercises.

Restricted Stock Units

Following is a summary of activity in the Restricted Stock Units for the periods indicated:



	2015				2014				2013
	Shares		Exercise Price*		Shares		Exercise Price*		Shares		Exercise Price*
Options outstanding at beginning of year	12,043		$	44.10	10,724		$	32.49	11,375		$	24.24
Granted	26,004		54.14		6,000		53.51		4,224		42.70
Exercised	(5,431	)	36.85		(4,681	)	29.56		(4,875	)	22.07
Cancelled	—		—		—		—		—		—
Options outstanding at end of year	32,616		53.31		12,043		44.10		10,724		32.49

*Weighted Averages

Restricted stock units vest 25% after one year following the award date and for an additional 25% of total awarded shares each succeeding year until fully vested. The weighted-average remaining contractual life in years for 2015, 2014, and 2013 were 3.11, 2.39 and 2.09, respectively. As of December 31, 2015, there was $1,242,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a period of four years.