Disclosure of Compensation Related Costs, Share Based Payments

The 2009 Stock Incentive Plan (the “Plan”), was approved by the Board in June 2009 and approved by the shareholders in September 2009. The Plan replaced the 2000 Option Plan and the Non-employee Director Stock Plan (together, the “Prior Plans”). There are 3,588,682 shares still available for grant at July 31, 2015. Awards made under the Plan may take the form of stock options, restricted stock or restricted stock units. Each share issued pursuant to a stock option will reduce the shares available for grant by one, and each share issued pursuant to an award of restricted stock or restricted stock units will reduce the shares available for grant by two. We account for stock-based compensation by estimating the fair value of stock options and restricted stock unit awards granted under the Plan using the market price of a share of our common stock on the date of grant. We recognize this fair value as an operating expense in our consolidated statements of income ratably over the requisite service period using the straight-line method, as adjusted for certain retirement provisions. All awards have been granted at no cost to the grantee and/or non-employee member of the Board. Additional information regarding the Plan is provided in the Company’s 2009 Proxy Statement.

On June 7, 2013 and June 19, 2013 restricted stock units with respect to a total of 77,650 shares were granted to certain officers and key employees. The fair value of these awards was $4,816. These awards will vest on June 7, 2016.

On September 13, 2013, restricted stock units totaling 14,000 shares were granted to the non-employee members of the Board. The fair value of this award was $958. This award vested on May 1, 2014.

On June 6, 2014, restricted stock units with respect to a total of 91,000 shares were granted to certain officers and key employees. The fair value of these awards was $6,584. These awards will vest on June 6, 2017.

On June 6, 2014, restricted stock totaling 30,538 shares were granted to certain officers and key employees. The award was due to the financial performance of the Company based upon the 2014 annual incentive performance goals. The awards vested immediately upon grant and the fair value was $2,209 at the time of the grant.

On September 19, 2014, restricted stock totaling 13,955 shares were granted to the non-employee members of the Board. The awards vested immediately upon grant and the fair value was $990 at the time of the grant.

On June 5, 2015, restricted stock units with respect to a total of 104,200 shares were granted to certain officers and key employees. The fair value of these awards was $9,135. These awards will vest on June 5, 2018.

On June 5, 2015, restricted stock totaling 48,913 shares were granted to certain officers and key employees. The award was due to the financial performance of the Company based upon the 2015 annual incentive performance goals. The awards vested immediately upon grant and the fair value was $4,288 at the time of the grant.

At July 31, 2015, options for 352,300 shares (which expire between 2016 and 2021) were outstanding for the Plan and Prior Plans. Information concerning the issuance of stock options under the Plan and Prior Plans is presented in the following table:



	Number of option shares	Weighted average option exercise price
Outstanding at April 30, 2015	401,800	$	36.55
Granted	—	—
Exercised	49,500	36.46
Forfeited	—	—
Outstanding at July 31, 2015	352,300	$	36.56

At July 31, 2015, all 352,300 outstanding options were vested, and had an aggregate intrinsic value of $23,129 and a weighted average remaining contractual life of 4.87 years. The aggregate intrinsic value for the total of all options exercised during the three months ended July 31, 2015, was $2,926.

Information concerning the issuance of restricted stock units under the Plan is presented in the following table:




Unvested at April 30, 2015	193,930
Granted	104,200
Vested	(31,480	)
Forfeited	—
Unvested at July 31, 2015	266,650

Total compensation costs recorded for the three months ended July 31, 2015 and 2014, respectively, were $1,737 and $1,632 for the stock option, restricted stock, and restricted stock unit awards. As of July 31, 2015, there were no unrecognized compensation costs related to the Plan for stock options and $13,112 of unrecognized compensation costs related to restricted stock units which are expected to be recognized ratably through fiscal 2018.