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

Stock Incentive Compensation falls under the scope of FASB ASC Topic 718 "Compensation – Stock Compensation" and affects the stock awards 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. For stock options, the Company has elected to use the simplified method of calculating the expected term 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. For restricted stock and restricted stock units, the Company is computing fair value based on a twenty day EMA as of the close of business the Friday preceding the award date.

2016 Equity and Incentive Compensation Plan

On March 9, 2016, stockholders approved and adopted the 2016 Equity and Incentive Compensation Plan ("2016 Plan") which replaced the Amended and Restated 1993 Key Employee Stock Incentive Program. The 2016 Plan authorizes the Compensation Committee of the Board of Directors of the Company to grant to officers and other key employees, including directors, of the Company and its subsidiaries (i) option rights, (ii) appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) cash incentive awards, performance shares and performance units and (vi) other awards. An aggregate of 1,500,000 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, was reserved for issuance pursuant to the Incentive Plan. An individual’s award of options and / or appreciation rights is limited to 500,000 shares during any calendar year. Also, an individual's award of restricted shares, restricted share units and performance based awards is limited to 350,000 shares during any calendar year.

The Compensation Committee of our Board of Directors approved the grant of restricted stock and restricted stock units under both the Amended and Restated 1993 Key Employee Stock Incentive Program and the 2016 Plan shown in the table below for the fiscal year ended October 31, 2016:



	Granted	20-Day EMA
Restricted Stock (1)	312,251	$4.30
Restricted Stock Units (2)	21,539	$4.17

(1) 32,394 shares issued under the Amended and Restated 1993 Key Employee Stock Incentive Program and 279,857 shares issued under the 2016 Plan.

(2) 21,539 units issued under the 2016 Plan.

The following table summarizes the Company's Incentive Plan activity during the years ended October 31, 2016, 2015, and 2014:



	Stock Options				Restricted Stock				Restricted Stock Units
Outstanding at:	Options		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Restricted Shares		20 Day EMA (1)	Weighted Average Remaining Contractual Life	Restricted Share Units	20 Day EMA (1)



November 1, 2013	236,134		$9.93	5.59	51,571		$10.18	2.84	—	—
Granted	—		—		89,500		19.65		—	—
Options exercised or restricted stock vested	(100,468	)	$10.55		(17,190	)	$10.18		—	—
Forfeited or expired	(12,333	)	$7.19		(7,000	)	20.64		—	—
October 31, 2014	123,333		$9.69	5.15	116,881		$16.81	2.58	—	—
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	4.10	124,255		$13.77	2.28	—	—
Granted	—		—		312,251		$4.30		21,539	$4.17
Options exercised or restricted stock vested	—		—		(54,349	)	$16.53		—	—
Forfeited or expired	(1,000	)	$12.04		(5,817	)	$5.71		—	—
October 31, 2016	89,666		$9.67	3.09	376,340		$6.40	1.83	21,539	$4.17

(1) 20-day EMA effective with commencement of the 2016 Plan on March 9, 2016.

The Company recorded stock compensation expense related to stock options, restricted stock and restricted stock units during the fiscal years ended October 31, 2016, 2015 and 2014 as follows:



	2016		2015		2014
Stock options	$	—	$	15	$	150
Restricted stock	1,035		1,010		429
Restricted stock units	37		—		—
Total	$	1,072	$	1,025	$	579

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 2016, 2015, and 2014.

Stock options were not exercised during fiscal year ended October 31, 2016. Cash received from the exercise of options for the fiscal years ended October 31, 2015 and 2014 was $159, and $1,061, respectively. At October 31, 2016, the options outstanding had an intrinsic value of $72 and the options exercisable had an intrinsic value of $72. Options that have an exercise price greater than the market price on October 31, 2016 were excluded from the intrinsic value computation. The intrinsic value of options exercised during fiscal 2015 and 2014 was $18 and $652, respectively.

The following table provides additional information regarding options outstanding as of October 31, 2016:



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	.29
$2.11	8,000	$2.11	8,000	2.12
$5.30	19,666	$5.30	19,666	2.78
$12.04	35,000	$12.04	35,000	4.11
$8.10	11,000	$8.10	11,000	5.14
Totals	89,666		89,666

Restricted Stock Awards

The grant date fair value of each restricted stock award equals the fair value of the Company's common stock based on a 20 day exponential moving average as of the close of business on the Friday preceding the award date. 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 one to four years. As of October 31, 2016, there was approximately $1,553 of total unrecognized compensation costs related to these restricted stock awards to be recognized over the next three fiscal years.

Restricted Stock Units

The grant date fair value of each restricted stock unit equals the fair value of the Company's common stock based on a 20 day exponential moving average as of the close of business on the Friday preceding the award date. 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 one to three years. As of October 31, 2016, there was approximately $48 of total unrecognized compensation expense related to these restricted stock units that is expected to be recognized over the next three fiscal years.

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 year 2016, the Compensation Committee established goals for participants based on the Company's earnings before interest, taxes, depreciation and amortization. For fiscal years 2015 and 2014, 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 both fiscal 2016 and 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.