. STOCK-BASED COMPENSATION

As of

November 29, 2020,

the Company had a

2018

Stock Option Plan (the

“2018

Plan”) and

other stock-based compensation plan. The

2018

Plan was adopted by the Board of Directors of the Company on

May 8, 2018

and approved by the shareholders of the Company at the Annual Meeting of Shareholders of the Company on

July 24, 2018

and provides for the grant of options to purchase up to

800,000

shares of common stock of the Company. Prior to the

2018

Plan, the Company had the

2002

Stock Option Plan (the

“2002

Plan”) which had also provided for the grant of stock options to purchase shares of the Company. All options granted under the

2018

Plan and

2002

Plan have exercise prices equal to the fair market value of the underlying common stock of the Company at the time of grant which, pursuant to the terms of such Plans, is the reported closing price of the common stock on the New York Stock Exchange on the date preceding the date the option is granted. Options granted under the Plans become exercisable

25%

one

year after the date of grant, with an additional

25%

exercisable each succeeding anniversary of the date of grant, and expire

years after the date of grant. Upon termination of employment or service as a director, all options held by the optionee that have

not

previously become exercisable shall terminate and all other options held by such optionee

may

be exercised, to the extent exercisable, on the date of such termination, for a limited time after such termination. Any shares of common stock subject to an option under the

2018

Plan which expire or are terminated unexercised as to such shares shall again become available for issuance under the

2018

Plan.

The

2002

Plan terminated on

May 21, 2018,

and authority to grant additional options under the

2002

Plan expired on that date. All options granted under the

2002

Plan will expire in

April 2028

or earlier.

During the

weeks and

weeks ended

November 29, 2020,

the Company granted options under the

2018

Plan to purchase a total of

and

132,100,

respectively, shares of common stock to its directors and certain of its employees. The future compensation expense to be recognized in earnings before income taxes is

$273

and will be recorded on a straight-line basis over the requisite service period. The weighted average fair value of the granted options was

$2.12

per share using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of

0.23%

0.42%;

expected volatility factor of

26.9%

30.0%;

expected dividend yield of

3.18%

3.49%;

and estimated option term of

4.3

7.6

years.

The risk-free interest rates were based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated terms of the options at the date of the grant. Volatility factors were based on historical volatility of the Company's common stock. The expected dividend yields were based on the regular quarterly cash dividend per share most recently declared by the Company and on the exercise price of the options granted during the

weeks and

weeks ended

November 29, 2020.

The estimated term of the options was based on evaluations of the historical and expected future employee exercise behavior.

The following is a summary of option activity for the

weeks ended

November 29, 2020:

	Outstanding Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value

Balance, March 1, 2020		510,634		$	12.45			$	480
Granted		132,100			12.55
Exercised		-			-
Terminated or expired		(5,850	)		12.88
Balance, November 29, 2020		636,884		$	12.46		5.44	$	592
Vested and exercisable, November 29, 2020		427,709		$	11.88		3.69	$	646