STOCK OPTIONS

Incentive Stock Option Plan

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. 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.

We also maintain other incentive option plans that have expired, under which previously granted awards remain outstanding. No additional grants may be awarded under these plans.

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



	2017				2016				2015
	Shares		Exercise Price*		Shares		Exercise Price*		Shares		Exercise Price*
Options outstanding at beginning of year	220,820		$	37.39	254,195		$	34.64	301,800		$	30.73
Granted	10,750		83.99		21,000		54.87		29,500		53.95
Exercised	(54,945	)	24.83		(43,775	)	26.59		(75,355	)	26.11
Canceled	(3,750	)	54.57		(10,600	)	50.68		(1,750	)	53.61
Options outstanding at end of year	172,875		43.91		220,820		37.39		254,195		34.64
Options exercisable at end of year	111,875		$	36.44	136,220		$	29.66	143,345		$	25.69
Options available for grant at end of year	344,950				353,450				370,750

*Weighted Averages

Options outstanding and exercisable at December 31, 2017 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 - $22.55	12,575		0.79	$	17.78	12,575	$	17.78
$24.69 - $42.70	80,650		4.38	$	34.57	73,850	$	33.82
$49.44 - $83.99	79,650		7.50	$	57.48	25,450	$	53.27
Total	172,875					111,875

*Weighted Averages

The weighted-average grant-date fair values of options granted during 2017, 2016, and 2015 were $36.00, $27.48 and $27.63, respectively. Stock option expense was $597,000, $787,000 and $735,000 for years ending 2017, 2016, and 2015, respectively. As of December 31, 2017, there was $998,000 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.

Equity Incentive Plan

Under the Company's 2009 Equity Incentive Plan the Company reserved 400,000 shares of common stock for options to purchase shares of common stock may be granted to non-employee directors. 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.



	2017	2016	2015
Options available for grant at end of year	176,294	207,608	232,522

We also maintain other incentive option plans that have expired, under which previously granted awards remain outstanding. No additional grants may be awarded under these plans.

Non-Qualified Options

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



	2017				2016				2015
	Shares		Exercise Price*		Shares		Exercise Price*		Shares		Exercise Price*
Options outstanding at beginning of year	112,400		$	34.48	127,300		$	32.05	132,100		$	31.30
Granted	—		—		—		—		—		—
Exercised	(45,400	)	22.73		(14,900	)	13.73		(4,800	)	11.45
Canceled	—		—		—		—		—		—
Options outstanding at end of year	67,000		42.43		112,400		34.48		127,300		32.05
Options exercisable at end of year	50,400		$	39.86	85,000		$	29.61	83,100		$	24.54

*Weighted Averages

Options outstanding and exercisable as of December 31, 2017 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 - $22.55	8,000		1.36	$	11.45	8,000	$	11.45
$24.69 - $42.70	30,000		5.02	39.99		25,000	39.45
$49.44 - $83.99	29,000		6.37	$	53.51	17,400	$	53.51
Total	67,000					50,400

*Weighted Averages

There were no options granted in 2015, 2016 or 2017. Stock option expense was $22,000, $27,000 and $35,000 for years ending 2017, 2016, and 2015, respectively. As of December 31, 2017, there was $30,000 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 2017, 2016, and 2015, 45,400, 14,900, and 4,800 non-qualified options were exercised, respectively, $1,032,000, $205,000, and $55,000 of cash receipts were received, respectively, and tax deductions of zero, $657,000, and $187,000 were realized, respectively, for the tax deductions from option exercises.

Restricted Stock Awards

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



	2017				2016				2015
	Shares		Exercise Price*		Shares		Exercise Price*		Shares		Exercise Price*
Options outstanding at beginning of year	45,621		$	54.58	32,616		$	53.31	12,043		$	44.10
Granted	33,620		84.34		27,440		55.17		26,004		54.14
Exercised	(16,189	)	56.03		(11,909	)	52.67		(5,431	)	36.85
Canceled	—		—		(2,526	)	53.57		—		—
Options outstanding at end of year	63,052		70.08		45,621		54.58		32,616		53.31

*Weighted Averages

Restricted stock awards 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 2017, 2016, and 2015 was 2.69, 2.89 and 3.11, respectively. Stock option expense was $1,250,000, $600,000 and $287,000 for years ending 2017, 2016, and 2015, respectively. As of December 31, 2017, there was $3,544,000 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.