8. Stock Options and Awards

Stock Options

As of December 29, 2018, the Company had one stock option plan, The Eastern Company 2010 Executive Stock Incentive Plan (the "2010 Plan"), for officers, other key employees, and non-employee Directors. Incentive stock options granted under the 2010 Plan must have exercise prices that are not less than 100% of the fair market value of the Company's common stock on the dates the stock 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 2010 Plan, non-qualified stock options granted to participants will have exercise prices determined by the Compensation Committee of the Company's Board of Directors. During 2018, no stock options or restricted stock were granted that were subject to the meeting of performance measurements and during 2017, 25,000 shares were granted but not issued. For the period of 2018, the Company used several assumptions which included an expected term of 3.5 years, volatility deviation of 29.5% and a risk free rate of 2.33%. For the period of 2017, the Company used several assumptions which included an expected term of 3.5 years, volatility deviation of 22.6% and a risk free rate of 1.47%.

The 2010 Plan also permits the issuance of Stock Appreciation Rights ("SARs"). The SARs are in the form of an option with a cashless exercise price equal to the difference between the fair value of the Company's common stock at the date of grant and the fair value as of the exercise date resulting in the issuance of the Company's common stock. During 2018, the Company issued 51,000 SARs and during 2017 149,500 SARs were issued.

Stock-based compensation expense in connection with SARs granted to employees during fiscal year 2018 was $276,778 and for 2017 was $172,806.

As of December 29, 2018, there were 274,500 shares of common stock reserved and available for future grant under the above noted 2010 Plan.

The following tables set forth the outstanding SARs for the period specified:

	Year Ended December 29, 2018					Year Ended December 30, 2017
	Units			Weighted - Average Exercise Price		Units			Weighted - Average Exercise Price
Outstanding at beginning of period		141,500		$	20.36		—		$	—
Issued		51,000			24.90		149,500			20.39
Forfeited		(3,333	)		19.10		(8,000	)		21.10
Outstanding at end of period		189,167			21.46		141,500			20.36

SARs Outstanding and Exercisable
Range of Exercise Prices		Outstanding as of December 29, 2018		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Exercisable as of December 29, 2018		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price
$	19.10-24.90		189,167		3.5	$	21.46		19,670		3.3		19.10

The following tables set forth the outstanding stock grants for the period specified:

	Year Ended December 29, 2018				Year Ended December 30, 2017
	Shares		Weighted - Average Exercise Price		Shares		Weighted - Average Exercise Price
Outstanding at beginning of period		25,000	$	—		—	$	—
Issued		—		—		25,000		—
Forfeited		—		—		—		—
Outstanding at end of period		25,000		—		25,000		—

Stock Grants Outstanding and Exercisable
Range of Exercise Prices		Outstanding as of December 30, 2017		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price		Exercisable as of December 29, 2018		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price
$	0.00		25,000		3.3		—		—		—		—

As of December 29, 2018, outstanding SARs and options had an intrinsic value of $1,104,410.