STOCK INCENTIVE PLANS

3 Months Ended

Apr. 01, 2016

Note 6.

STOCK INCENTIVE PLANS

The Company has various stock incentive plans that provide for the granting of stock options, nonqualified stock options, SARs, restricted stock, performance units or shares and other incentive awards to certain employees and directors. SARs entitle the holder to receive cash, upon vesting, equal to the excess of the fair market value of a share of the Company’s common stock on the date of exercise over the fair market value of such share on the date granted. SARs have been granted at or above the market price of the Company’s stock at the date of grant, typically vest over periods up to three years, and expire ten years from the date of issue. No more than 50% of the cumulative number of vested SARs held by an employee can be exercised in any one calendar year.

As of April 1, 2016 there were 35,000 outstanding SARs and there was no activity during the three months ended April 1, 2016.

At April 1, 2016 and December 31, 2015, the aggregate liability related to SARs was $64,000 and $32,000, respectively, and is included in accrued expenses in the Condensed Consolidated Balance Sheets.