—Stock Options and Incentive Compensation (amounts in thousands except number of shares and per share data)

For the Company, FASB ASC Topic 718, "Compensation – Stock Compensation," affects the stock options that have been granted and requires the Company to expense share-based payment ("SBP") awards with compensation cost for SBP transactions measured at fair value. The Company has elected to use the simplified method of calculating the expected term of the stock options and historical volatility to compute fair value under the Black-Scholes option-pricing model. The risk-free rate for periods within the contractual life of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant. Forfeitures have been estimated based upon the Company’s historical experience.

1993 Key Employee Stock Incentive Plan

The Company maintains the Amended and Restated 1993 Key Employee Stock Incentive Program (the "Incentive Plan"), which authorizes grants to officers and other key employees of the Company and its subsidiaries of (i) stock options that are intended to qualify as incentive stock options, (ii) nonqualified stock options and (iii) restricted stock awards. An aggregate of 2,700,000 shares of Common Stock, subject to adjustment upon occurrence of certain events to prevent dilution or expansion of the rights of participants that might otherwise result from the occurrence of such events, has been reserved for issuance pursuant to the Incentive Plan. An individual’s award of stock options is limited to 500,000 shares in a five-year period.

The following table summarizes the Company's Incentive Plan activity during the years ended October 31, 2015, 2014, and 2013:



	Options			Restricted Stock Awards

Outstanding at:	Options		Weighted Average Exercise Price	Restricted Shares		Weighted Average Grant Date Fair Value



November 1, 2012	362,085		$9.99	80,257		$10.18
Options exercised or restricted stock vested	(47,804	)	$6.28	(28,685	)	$10.18
Forfeited or expired	(78,147	)	$12.45	—		—
October 31, 2013	236,134		$9.93	51,572		$10.18
Granted	—		—	89,500		$19.65
Options exercised or restricted stock vested	(100,468	)	$10.55	(17,191	)	$10.18
Forfeited or expired	(12,333	)	$7.19	(7,000	)	$20.64
October 31, 2014	123,333		$9.69	116,881		$16.81
Granted	—		—	84,272		$11.22
Options exercised or restricted stock vested	(19,317	)	$8.19	(68,648	)	$14.99
Forfeited or expired	(13,350	)	$11.80	(8,250	)	$20.64
October 31, 2015	90,666		$9.70	124,255		$13.77

Restricted Stock Awards

The grant date fair value of each restricted stock award equals the market price of the Company's common stock on its date of grant. Compensation expense is recorded at the grant date fair value, less an estimated forfeiture amount, and is recognized over the applicable vesting periods. The vesting periods range between three months and four years. During the years ended October 31, 2015, 2014, and 2013, the Company recorded compensation expense related to the restricted stock awards of $1,010, $429, and $282, respectively. As of October 31, 2015, there was approximately $1,336 of total unrecognized compensation costs related to these restricted stock awards to be recognized over the next three fiscal years.

Stock Options

The exercise price of each stock option equals the market price of the Company's common stock on its grant date. Compensation expense is recorded at the grant date fair value, less an estimated forfeiture amount, and is recognized on a straight-line basis over the applicable vesting period. The Company's stock options generally vest over three years, with a maximum term of ten years. Incentive stock options were not granted during fiscal years 2015, 2014, and 2013.

For the fiscal years ended October 31, 2015, 2014, and 2013, the Company recorded compensation expense related to the stock options that vested during the period, effectively reducing pretax income by $15, $150, and $456, respectively.

There were 90,666 options outstanding and exercisable as of October 31, 2015 with a weighted average exercise price of $9.70. Cash received from the exercise of options for the fiscal years ended October 31, 2015, 2014, and 2013 was $159, $1,061, and $302, respectively. At October 31, 2015, the options outstanding had an intrinsic value of $96 and the options exercisable had an intrinsic value of $96. Options that have an exercise price greater than the market price on October 31, 2015 were excluded from the intrinsic value computation. The intrinsic value of options exercised during fiscal 2015, 2014, and 2013 was $18, $652, and $485, respectively.

The following table provides additional information regarding options outstanding as of October 31, 2015:



Exercise Prices	Options Outstanding	Exercise Price of Options Outstanding and Options Exercisable	Options Exercisable	Weighted Average Remaining Contractual Life


$14.74	16,000	$14.74	16,000	1.29
$2.11	8,000	$2.11	8,000	3.12
$5.30	19,666	$5.30	19,666	3.78
$12.04	36,000	$12.04	36,000	5.11
$8.10	11,000	$8.10	11,000	6.15
Totals	90,666		90,666

Incentive Bonus Plans

The Company maintains a Management Incentive Plan ("MIP") to provide the Chief Executive Officer and certain eligible employees ("participants") incentives for superior performance. The MIP is administered by the Compensation Committee of the Board of Directors and entitles the participants to be paid a cash bonus based upon varying percentages of their respective salaries, the level of achievement of the corporate goals established by the Compensation Committee and specific individual goals as established by the Chief Executive Officer (for employees other than the CEO). For fiscal years 2015, 2014 and 2013, the Compensation Committee established goals for participants based on the Company's earnings before interest, taxes, depreciation and amortization and return on invested capital. The incentive depends upon meeting the operating targets and, for participants at an operating unit, 50% is based upon attaining the corporate goals for the Company's performance. For fiscal 2015, the Company did not meet the established targets and therefore participants were not eligible for a bonus payout under the MIP. For fiscal 2014, participants in the MIP received an aggregate bonus of $3,360 under the MIP, which was paid in the first quarter of fiscal 2015. For fiscal 2013, participants in the MIP received an aggregate bonus of $3,293 under the MIP, which was paid in the first quarter of fiscal 2014.