STOCKHOLDERS' EQUITY.

12 Months Ended

Dec. 31, 2016

STOCKHOLDERS' EQUITY.

STOCKHOLDERS' EQUITY.

8.            STOCKHOLDERS’ EQUITY.

Preferred Stock

The Company is authorized to issue 1,000,000 shares of preferred stock ($1 par value) of which none have been issued.  The Board of Directors is vested with the authority to determine and state the designations and relative preferences, limitations, voting rights, if any, and other rights of the preferred shares.

Common Stock

The Board of Directors approved the following cash dividends on the Company’s outstanding Class A and Class B Common Stock during the years ended December 31, 2016 and December 26, 2015:

Declaration Date	Record Date	Paid Date	Per Share
March 3, 2015	March 17, 2015	March 24, 2015	$	0.025
May 6, 2015	May 27, 2015	June 3, 2015	$	0.030
August 5, 2015	August 24, 2015	August 31, 2015	$	0.030
November 10, 2015	December 11, 2015	January 4, 2016	$	0.300
March 2, 2016	March 16, 2016	March 23, 2016	$	0.030
May 25, 2016	June 9, 2016	June 16, 2016	$	0.035
August 10, 2016	August 24, 2016	August 31, 2016	$	0.035
November 9, 2016	December 12, 2016	January 3, 2017	$	0.300

Convertible Class B Common Stock

Class B Common Stock is convertible into Class A Common Stock on a one-for-one basis. During 2016, 54,371 shares of Class B Common Stock were converted into Class A Common Stock. During 2015, 29,467 shares of Class B Common Stock were converted into Class A Common Stock. Holders of Class A Common Stock are entitled to elect one-third of the Board of Directors rounded to the lowest whole number.  Holders of Class B Common Stock elect the remainder of the directors.

Stock Options

On January 23, 2004, the Company’s Board of Directors approved, and the Company’s stockholders subsequently ratified, the 2004 Stock Option Plan, as amended, under which 1,297,440 shares of Class A Common Stock were reserved for grant. This plan expired on January 22, 2014. Under the terms of the stock option plans, both incentive stock options and non-statutory stock options were granted by a specially designated Stock Awards Committee.  The Stock Option Plan, as amended, also allowed for awards of common stock including restricted stock awards. Options granted under the stock option plans generally vest and become exercisable in annual installments of 331/3% beginning on the first anniversary date, and the options expire five or seven years after the date of grant.  The Company generally issues new shares to satisfy stock option exercises.

The following table summarizes the activity for stock options:

			Weighted - Average
	Options		Exercise Price
Outstanding, December 29, 2013	535,431		2.79
Exercised	(183,623	)	3.15
Outstanding, December 27, 2014	351,808		2.61
Exercised	(182,548	)	3.15
Outstanding, December 26, 2015	169,260		2.02
Exercised	(151,410	)	2.01
Outstanding, December 31, 2016	17,850		2.12

The total intrinsic value of options exercised during the fiscal years ended 2016, 2015 and 2014 approximated $1,771,913, $218,599 and $349,478, respectively.

Information about stock options outstanding and exercisable at December 31, 2016 is as follows:

	Outstanding			Exercisable
		Weighted -
		Average	Weighted -		Weighted -
		Remaining	Average		Average
Range of	Number	Contractual	Exercise	Number	Exercise
Exercise Price	Outstanding	Life in Years	Price	Exercisable	Price
2.12	17,850	0.75	2.12	17,850	2.12

At December 31, 2016 and December 26, 2015, the aggregate intrinsic value of options exercisable and the intrinsic value of all options outstanding approximated $242,335 and $862,495, respectively.

2012 Long-Term Incentive Plan

On May 23, 2012, the Company held its annual meeting of stockholders at which the Company’s stockholders approved the 2012 Long-Term Incentive Plan (the “2012 Plan”) which had previously been approved by the Board of Directors and recommended to the stockholders. The 2012 Plan was replaced by the 2016 Long-Term Incentive Plan described below; provided, however, any awards issued prior to the 2012 Plan’s termination will remain outstanding in accordance with their terms. The 2012 Plan authorized the issuance of 1,050,000 shares of the Company’s Class A Common Stock with certain officers being limited to receiving grants of 100,000 shares in any one year. Employees, contractors and non-employee directors of the Company and its subsidiaries were eligible to receive awards under the 2012 Plan. The following types of awards were permitted to be granted under the 2012 Plan:  (1) stock options (incentive and non-qualified); (2) stock appreciation rights; (3) restricted stock and restricted stock units; (4) dividend equivalent rights; (5) performance awards based on achieving specified performance goals; and (6) other awards.

2016 Long-Term Incentive Plan

On May 25, 2016, the Company held its annual meeting of stockholders at which the Company’s stockholders approved the 2016 Long-Term Incentive Plan (the “2016 Plan”) which had previously been approved by the Board of Directors and recommended to the stockholders. The 2016 Plan is effective until May 25, 2026; provided, however, any awards issued prior to the 2016 Plan’s termination will remain outstanding in accordance with their terms. The 2016 Plan authorizes the issuance of 1,000,000 shares of the Company’s Class A Common Stock (subject to increase of Prior Plan Awards as defined in the 2016 Plan) with certain officers being limited to receiving grants of 100,000 shares in any one year. Employees, contractors and non-employee directors of the Company and its subsidiaries are eligible to receive awards under the 2016 Plan. The following types of awards may be granted under the 2016 Plan: (1) stock options (incentive and non-qualified); (2) stock appreciation rights; (3) restricted stock and restricted stock units; (4) dividend equivalent rights; (5) performance awards based on achieving specified performance goals; and (6) other awards.

The following table summarizes the activity for the unvested restricted stock:

	Unvested
	Restricted		Weighted - Average
	Stock		Grant Date Fair Value
Unvested, December 29, 2013	110,431		3.99
Granted	60,896		6.87
Vested	(65,510	)	4.72
Unvested, December 27, 2014	105,817		5.19
Granted	122,890		8.43
Vested	(98,518	)	5.95
Forfeited	(13,761	)	7.87
Unvested, December 26, 2015	116,428		7.66
Granted	113,992		8.00
Vested	(100,754	)	7.45
Unvested, December 31, 2016	129,666		8.12

The total fair value of shares vested and recognized as stock-based compensation expense during the years ended December 31, 2016 and December 26, 2015 was $750,454 and $585,723 respectively.

Beginning in 2012, as a part of annual director compensation, a stock award is paid to each of the Company’s outside directors equal to $27,500 divided by the closing sales price on the grant date. The grants are made in quarterly increments. Shares granted during 2016 and 2015 totaled 18,182 and 24,409, respectively.

Total unrecognized compensation expense related to all share-based awards outstanding at December 31, 2016, was approximately $1,053,026 and is to be recorded over a weighted-average contractual life of 1.77 years.

As of December 31, 2016, 1,012,140 shares were reserved for the granting of future share-based awards compared to 627,540 shares at December 26, 2015.