Stock Based Compensation and Stock Options

6 Months Ended

Jul. 02, 2011

Stock Based Compensation and Stock Options [Abstract]

Stock Based Compensation and Stock Options

Note J – Stock Based Compensation and Stock Options

The Company has stock option plans for officers, other key employees, and non-employee directors. As of July 2, 2011 two plans have shares reserved for future issuance, the 1995 and 2010 plans.  Incentive stock options granted under the 1995 and 2010 plans must have exercise prices that are not less than 100% of the fair market value of the stock on the dates the options are granted. Restricted stock awards may also be granted to participants under the 2010 plan with restrictions determined by the Compensation Committee of the Company's Board of Directors. Under the 1995 and 2010 plans, nonqualified stock options granted to participants will have exercise prices determined by the Compensation Committee of the Company's Board of Directors. No options or restricted stock were granted in the first six months of 2011 or 2010.

As of July 2, 2011, there were 500,000 shares available for future grant under the above noted 2010 plan and there were no shares available for grant under the 1995 plan.  As of July 2, 2011, there were 570,500 shares of common stock reserved under all option plans for future issuance.

	Six Months Ended July 2, 2011				Year Ended January 1, 2011
	Shares		Weighted - Average Exercise Price		Shares		Weighted - Average Exercise Price
Outstanding at beginning of period	80,000		$	12.471	221,750		$	10.581
Granted	-			-	-			-
Exercised	(9,500	)		9.578	(141,750	)		9.514
Outstanding at end of period	70,500			12.861	80,000			12.471

Options Outstanding and Exercisable
Range of Exercise Prices	Outstanding as of July 2, 2011	Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price
$10.20	15,000	2.1	$10.200
$13.58	55,500	3.5	13.580
	70,500	3.2	12.861

At July 2, 2011, outstanding and exercisable options had an intrinsic value of $229,770.  The total intrinsic value of stock options exercised in the first six months of 2011 was $86,515.  For the six month periods ended July 2, 2011 and July 3, 2010, the Company recognized tax benefits of $16,453 and $19,370, respectively, resulting from the disqualification of incentive stock options that were exercised and sold prior to the required holding period.