Note

13.

Stock Based Compensation

The Plan is administered by the Compensation Committee or such other Board committee (or the entire Board) as

may

be designated by the Board (the “Committee”). At

July 1, 2018,

the Company has reserved approximately

5.5

million shares of Class A common stock for issuance, including options previously authorized for issuance under the

1999

Stock Incentive Plan.

The amounts of stock-based compensation expense recognized within operating income (*) in the periods presented are as follows:

	Years Ended
	July 1, 2018		July 2, 2017		July 3, 2016

	(in thousands, except per share data)

Stock options	$	429	$	446	$	432
Restricted stock awards		3,297		5,248		5,911
Total		3,726		5,694		6,343
Deferred income tax benefit		961		2,213		1,987
Stock-based compensation expense, net	$	2,765	$	3,481	$	4,356

Stock based compensation expense is recorded within the following line items of operating expenses:

	Years Ended
	July 1, 2018		July 2, 2017 (*)		July 3, 2016

	(in thousands)

Marketing and sales	$	989	$	1,624	$	2,306
Technology and development		198		315		493
General and administrative		2,539		3,755		3,544
Total	$	3,726	$	5,694	$	6,343

Stock-based compensation expense has

not

been allocated between business segments, but is reflected as part of Corporate overhead. (See

Note

15.

for details).

(*)

Excludes approximately

$0.4

milliom of stock-based compensation expense recorded within the gain on the sale of Fannie

May,

resulting from the acceleration of vesting of shares for Fannie

May

personnel, upon closing of the disposition.

Stock Options

The Company did

not

grant stock options during fiscal years

2018,

2017

and

2016.

The following table summarizes stock option activity during the year ended

July 1, 2018:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (000s)

Outstanding beginning of period		2,127,734		$	2.42
Granted		-		$	-
Exercised		(142,000	)	$	2.49
Forfeited/Expired		(17,500	)	$	9.83
Outstanding end of period		1,968,234		$	2.35	2.9	$	20,077

Options vested or expected to vest at end of period		1,968,234		$	2.35	2.9	$	20,077
Exercisable at July 1, 2018		1,580,234		$	2.29	2.8	$	16,207

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of fiscal

2018

and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on

July 1, 2018.

This amount changes based on the fair market value of the Company’s stock. The total intrinsic value of options exercised for the years ended

July 1, 2018,

July 2, 2017

and

July 3, 2016

was

$1.1

million,

$0.5

million and

$4.2

million, respectively.

The following table summarizes information about stock options outstanding at

July 1, 2018:

		Options Outstanding						Options Exercisable
Exercise Price		Options Outstanding		Weighted- Average Remaining Contractual Life (years)		Weighted- Average Exercise Price		Options Exercisable		Weighted- Average Exercise Price

$	1.79		895,000		2.3	$	1.79		770,000	$	1.79
$	2.22 – 2.44		32,000		1.5	$	2.43		32,000	$	2.43
$	2.63		1,000,000		3.3	$	2.63		750,000	$	2.63
$	3.26 – 10.20		41,234		4.7	$	7.63		28,234	$	6.94

			1,968,234		2.9	$	2.35		1,580,234	$	2.29

As of

July 1, 2018,

the total future compensation cost related to non-vested options

not

yet recognized in the statement of operations was

$0.4

million and the weighted average period over which these awards are expected to be recognized was

1.0

years.

Restricted Stock

The Company grants shares of Common Stock to its employees that are subject to restrictions on transfer and risk of forfeiture until fulfillment of applicable service conditions and, in certain cases, holding periods (Restricted Stock).

The following table summarizes the activity of non-vested restricted stock during the year ended

July 1, 2018:

	Shares			Weighted Average Grant Date Fair Value

Non-vested – beginning of period		1,352,873		$	7.44
Granted		921,473		$	9.50
Vested		(622,734	)	$	7.87
Forfeited		(683,339	)	$	9.46
Non-vested - end of period		968,273		$	7.70

The fair value of non-vested shares is determined based on the closing stock price on the grant date. As of

July 1, 2018,

there was

$4.3

million of total unrecognized compensation cost related to non-vested restricted stock-based compensation to be recognized over a weighted-average period of

1.8

years.