Stock option plan

6 Months Ended

Apr. 30, 2015

Note 14 – Stock option plan:

On September 4, 2014, the Board approved the grant of a total of 246,000 non-qualified share options under FREIT's Equity Incentive Plan to certain FREIT Executive Officers, the members of the Board and certain employees of Hekemian & Co., Inc. The options have an exercise price of $18.45 per share, will vest over a 5 year period at 20% per year, and will expire 10 years from the date of grant, which will be September 3, 2024.

The following table summarizes stock option activity for the six-month period ended April 30, 2015:

	Six Months Ended April 30,
	2015
	No. of Options		Exercise
	Outstanding		Price
Options outstanding beginning of period		246,000	$	18.45
Options granted during period		—		—
Options outstanding end of period		246,000	$	18.45
Options expected to vest		238,620
Options exercisable at end of period		—

For the six and three-month periods ended April 30, 2015, compensation expense related to stock options granted amounted to $47,000 and $24,000, respectively. At April 30, 2015, there was approximately $408,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over a vesting period of approximately five (5) years.

The aggregate intrinsic value of options outstanding at April 30, 2015 was $442,800.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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