Stock Option Plans

In 2004, the Company has established a stock incentive plan (the "Plan"), as amended. Under the Plan, options were granted at an exercise price not less than the market value of the common stock on the date of grant and expire ten years from the date of grant. Officer options vest ratably over four years following the grant and are charged to expense using the straight-line method over the vesting period. Director options vest immediately and are charged to expense as of the date of grant.

The following table summarizes the amount and activity of each grant with outstanding unexercised options, the total value and variables used in the computation and the amount expensed and included in general and administrative expense in the Consolidated Statements of Operations for the three months ended March 31, 2019.



	Directors
Grant date	4/24/2009			5/7/2010			5/13/2011			5/4/2012			5/10/2013			5/9/2014			5/8/2015			5/6/2016			5/5/2017			5/11/2018			Subtotals
Total grant	32,500			32,500			32,500			35,000			35,000			30,000			35,000			32,500			27,500			27,500			320,000
Vested	32,500			32,500			32,500			35,000			35,000			30,000			35,000			32,500			27,500			27,500			320,000
Exercised	30,000			27,500			25,000			25,000			22,500			17,500			12,500			7,500			—			2,500			170,000
Forfeited	—			2,500			2,500			—			—			—			2,500			2,500			5,000			—			15,000
Exercisable at March 31, 2019	2,500			2,500			5,000			10,000			12,500			12,500			20,000			22,500			22,500			25,000			135,000
Remaining unexercised	2,500			2,500			5,000			10,000			12,500			12,500			20,000			22,500			22,500			25,000			135,000
Exercise price	$	32.68		$	38.76		$	41.82		$	39.29		$	44.42		$	47.03		$	51.07		$	57.74		$	59.41		$	49.46
Volatility	0.344			0.369			0.358			0.348			0.333			0.173			0.166			0.166			0.173			0.192
Expected life (years)	6.0			5.0			5.0			5.0			5.0			5.0			5.0			5.0			5.0			5.0
Assumed yield	4.54		%	4.23		%	4.16		%	4.61		%	4.53		%	4.48		%	4.54		%	3.75		%	3.45		%	3.70		%
Risk-free rate	2.19		%	2.17		%	1.86		%	0.78		%	0.82		%	1.63		%	1.50		%	1.23		%	1.89		%	2.84		%
Total value at grant date	$	222,950		$	287,950		$	297,375		$	257,250		$	278,250		$	109,500		$	125,300		$	151,125		$	165,550		$	169,400		$	2,064,650
Expensed in previous years	222,950			287,950			297,375			257,250			278,250			109,500			125,300			151,125			165,550			169,400			2,064,650
Expensed in 2019	—			—			—			—			—			—			—			—			—			—			—
Future expense	—			—			—			—			—			—			—			—			—			—			—
	Officers
Grant date	5/13/2011			5/4/2012			5/10/2013			5/9/2014			5/8/2015			5/6/2016			5/5/2017			5/11/2018			Subtotal						Grand Totals
Total grant	162,500			242,500			202,500			170,000			190,000			194,000			205,000			217,500			1,584,000						1,904,000
Vested	118,750			107,500			171,875			168,125			140,625			96,375			51,250			—			854,500						1,174,500
Exercised	103,750			92,455			129,375			46,126			20,625			3,750			—			—			396,081						566,081
Forfeited	43,750			135,000			30,625			1,875			3,125			1,875			—			—			216,250						231,250
Exercisable at March 31, 2019	15,000			15,045			42,500			121,999			120,000			92,625			51,250			—			458,419						593,419
Remaining unexercised	15,000			15,045			42,500			121,999			166,250			188,375			205,000			217,500			971,669						1,106,669
Exercise price	$	41.82		$	39.29		$	44.42		$	47.03		$	51.07		$	57.74		$	59.41		$	49.46
Volatility	0.330			0.315			0.304			0.306			0.298			0.185			0.170			0.177
Expected life (years)	8.0			8.0			8.0			7.0			7.0			7.0			7.0			7.0
Assumed yield	4.81		%	5.28		%	5.12		%	4.89		%	4.94		%	3.80		%	3.50		%	3.75		%
Risk-free rate	2.75		%	1.49		%	1.49		%	2.17		%	1.89		%	1.55		%	2.17		%	2.94		%
Gross value at grant date	$	1,366,625		$	1,518,050		$	1,401,300		$	1,349,800		$	1,584,600		$	1,136,840		$	1,324,300		$	1,313,700		$	10,995,215					$	13,059,865
Estimated forfeitures	367,937			845,100			211,925			14,887			26,062			86,628			91,642			83,157			1,727,338						1,727,338
Expensed in previous years	998,688			672,950			1,189,375			1,334,913			1,322,596			700,128			513,600			205,088			6,937,338						9,001,988
Expensed in 2019	—			—			—			—			176,957			65,637			77,040			76,908			396,542						396,542
Future expense	—			—			—			—			58,985			284,447			642,018			948,547			1,933,997						1,933,997
Weighted average term of remaining future expense (in years)	2.4

The table below summarizes the option activity for the three months ended March 31, 2019:



	Number of Shares		Weighted Average Exercise Price per share		Aggregate Intrinsic Value
Outstanding at January 1	1,114,169		$	52.40	$	543,662
Granted	—		—		—
Exercised	—		—		—
Expired/Forfeited	(7,500	)	56.07
Outstanding at March 31	1,106,669		52.38		2,056,820
Exercisable at March 31	593,419		50.86		1,627,519

The intrinsic value measures the price difference between the options’ exercise price and the closing share price quoted by the New York Stock Exchange as of the date of measurement. The intrinsic value for shares exercised during the period was calculated by using the closing share price on the date of exercise. At March 29, 2019, the final trading day of the first quarter, the closing share price of $51.37 was lower than the exercise price of the 210,875 and 227,500 outstanding options granted in 2016 and 2017, respectively. The weighted average remaining contractual life of the Company’s outstanding and exercisable options is 7.0 years and 6.0 years, respectively.