Note 10 – Share-Based Compensation

3 Months Ended

Jun. 26, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE J – SHARE-BASED COMPENSATION

Total share-based compensation during the thirteen-week periods ended June 26, 2011 and June 27, 2010 was $86,000 and $107,000, respectively. Total share-based compensation is included in general and administrative expense in our accompanying Consolidated Statements of Earnings. As of June 26, 2011, there was $902,000of unamortized compensation expense related to stock options. We expect to recognize this expense over approximately three years and eleven months, which represents the requisite service periods for such awards.

On September 14, 2010, the Company adopted the 2010 Stock Incentive Plan (“the 2010 Plan”) which provides for the issuance of up to 150,000 additional shares pursuant to the 2010 Plan together with 171,000 shares that have not been issued under the 2001 Stock Option Plan (the “2001 Plan”) and the 2002 Stock Incentive Plan (the “2002 Plan”) plus any shares subject to any outstanding options or restricted stock grants under the 2001 Plan and the 2002 Plan that subsequently expire unexercised or are otherwise forfeited up to a maximum of an additional 100,000 shares.

During the thirteen-week period ended June 26, 2011, the Company granted 177,500 stock options having an exercise price of $17.75 per share, all of which expire five years from the date of grant. All 177,500 options granted vest ratably over a four-year period as follows: 25% on June 6, 2012, 25% on June 6, 2013, 25% on June 6, 2014 and the balance on June 6, 2015.

There were no share-based awards granted during the thirteen-week period ended June 27, 2010.

The weighted-average option fair values, as determined using the Black-Scholes option valuation model, and the assumptions used to estimate these values for stock options granted during the thirteen weeks ended June 26, 2011, are as follows:

Weighted-average option fair values	$	5.039
Expected life (years)		5.0
Interest rate		1.60	%
Volatility		28.90	%
Dividend yield		0	%

The expected dividend yield is based on historical and projected dividend yields. The Company estimates expected volatility based primarily on historical monthly price changes of the Company's stock equal to the expected life of the option. The risk free interest rate is based on the U.S. Treasury yield in effect at the time of the grant. The expected option tern is the number of years the Company estimates the options will be outstanding prior to exercise based on expected employment termination behavior.

Stock options outstanding:

Transactions with respect to stock options for the thirteen weeks ended June 26, 2011 are as follows:

			Weighted-		Weighted-
			Average		Average		Aggregate
			Exercise		Remaining		Intrinsic
	Shares		Price		Contractual Life		Value
Options outstanding at March 27, 2011		470,000	$	11.29		3.48	$	2,766,000
Granted		177,500		17.75		5.00		-
Expired		-		-		-		-
Exercised		-		-		-		-
Options outstanding at June 26, 2011		647,500	$	13.06		3.70	$	3,521,000
Options exercisable at June 26, 2011		455,000	$	11.09		3.29	$	3,372,000