Stock Compensation Plans

The Company has two share-based compensation plans, the 2006 Incentive Stock Plan ("2006 Plan") and the 1995 Non-Qualified Stock Option Plan ("1995 Plan"). At November 2, 2014, there were 605,850 shares available for future grants.

2006 Plan

The shareholders of the Company approved the Volt Information Sciences, Inc. 2006 Incentive Stock Plan (2006 Plan) in April 2007. The 2006 Plan permits the grant of Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock and Restricted Stock Units related to the Company’s common stock to employees and nonemployee directors of the Company through September 6, 2016.

The aggregate number of shares that may be issued pursuant to awards made under the 2006 Plan may not exceed 1,500,000 shares and the options will be granted at a price of no less than 100% of the fair market value of the Company’s common stock at the date of grant.

During fiscal 2013, the Company granted 110,000 shares of the Company’s common stock as restricted stock awards. The weighted average fair value for these shares at the grant date was $7.16. Compensation expense is recognized on a straight-line basis over the vesting period of 2.5 years.

During fiscal 2014, the Company granted 340,000 stock options to purchase shares of the Company's common stock. If certain stock price targets are not met on or prior to July 3, 2017, these options will expire. The closing price for the Company's stock must be no less than certain market targets for ten consecutive trading days for the stock options to be exercisable. These options expire seven years from the grant date. In addition, the Company granted 15,000 shares of the Company's common stock as restricted stock awards. The weighted average fair value for these shares at the grant date was $9.24. Compensation expense was recognized on the grant date since the shares vested immediately.

As of November 2, 2014, there was $493,000 of total unrecognized compensation cost related stock options to be recognized over a derived service period of 1.5 years. Additionally, there was $74,000 of total unrecognized compensation cost related to restricted shares to be recognized over a weighted average period of 0.9 years.

The following table summarizes transactions involving outstanding stock options and non-vested restricted stock and restricted stock unit awards (stock awards) under the 2006 plan:



	Stock Options							Restricted Stock
2006 Plan	Number of shares		Weighted average exercise price		Weighted average contractual life	Aggregate Intrinsic Value		Number of shares		Weighted average grant date fair value
					(in years)	(in thousands)
Outstanding - October 30, 2011	715,017		$7.51		7.31	$	232	—		$	—
Granted	—		—		—	—		—		—
Expired	(27,800	)	6.39		—	—		—		—
Forfeited	(149,267	)	11.25		—	—		—		—
Outstanding - October 28, 2012	537,950		6.53		6.43	314		—		—
Granted	—		—		—	—		110,000		7.16
Expired	(28,700	)	6.39		—	—		—		—
Forfeited	(25,100	)	7.22		—	—		—		—
Vested	—		—		—	—		(36,666	)	6.25
Outstanding - November 3, 2013	484,150		6.50		5.42	1,041		73,334		7.61
Granted	340,000		12.59		6.67	—		15,000		9.24
Expired	(34,600	)	6.39		—	—		—		—
Forfeited	(25,400	)	6.39		—	—		—		—
Vested	—		—		—	—		(65,000	)	7.97
Outstanding - November 2, 2014	764,150		$	9.22	5.43	$	776	23,334		$	7.68
Unvested at November 2, 2014	2,000		$	10.56	6.53	$	—	23,334		$	7.68
Vested and unexercisable at November 2, 2014	340,000		$	12.59	6.67	$	—	—		$	—
Exercisable at November 2, 2014	422,150		$	6.50	4.43	$	776

1995 Plan

In 1995, the Company adopted a Non-Qualified Stock Option Plan (1995 Plan) pursuant to which the Company’s Board of Directors could grant stock options to the key employees of the Company or of any subsidiary of the Company. The 1995 Plan terminated on May 16, 2005 pursuant to its terms. Options to purchase shares of common stock previously granted under the plan will remain outstanding until exercised, cancelled, forfeited or expired.

The following table summarizes transactions involving outstanding stock options under the 1995 plan:



1995 Plan	Number of shares		Weighted average exercise price		Weighted average contractual life	Aggregate Intrinsic Value
					(in years)	(in thousands)
Outstanding - October 30, 2011	28,650		$	12.21	1.39	$	—
Exercised	—		—		—	—
Expired	(10,950	)	10.42		—	—
Outstanding - October 28, 2012	17,700		13.31		1.01	—
Exercised	—		—		—	—
Expired	(10,200	)	9.27		—	—
Outstanding - November 3, 2013	7,500		18.81		0.76	—
Exercised	—		—		—	—
Expired	(7,500	)	18.81		—	—
Outstanding - November 2, 2014	—		—		—	—

Vested and exercisable at November 2, 2014	—		$	—	—	$	—

The Company estimates the fair value of each stock option grant using the Black-Scholes option-pricing model and Monte Carlo simulation when applicable. There were no option grants in fiscal 2013 and 2012. The assumptions used to estimate the fair value stock options were as follows for the 2014 fiscal year:



	November 2, 2014
Weighted-average fair value of stock option granted	$	3.21
Expected volatility	48.0		%
Expected term (in years)	7
Risk-free interest rate	2.25		%
Expected dividend yield	0.0		%

Share based compensation expense was recognized in Selling, Administrative and Other Operating Costs in the Company’s Consolidated Statements of Operations as follows (in thousands):



	Year ended
	November 2, 2014		November 3, 2013		October 28, 2012
2006 Stock Incentive Plan
Selling, administrative and other operating costs	$	1,198	$	416	$	127
Total	$	1,198	$	416	$	127