STOCK OPTIONS

9 Months Ended

Jun. 27, 2015

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

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

10. STOCK OPTIONS

The Company has options outstanding under two stock option plans, the 2004 Stock Option Plan (the “2004 Plan”) and the 2010 Stock Option Plan (the “2010 Plan”), which was approved by shareholders in the second quarter of 2010. Effective with this approval, the Company terminated the 2004 Plan. This action terminated the 400 authorized but unissued options under the 2004 Plan, but it did not affect any of the options previously issued under the 2004 Plan. Options granted under the 2004 Plan are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted. The options expire ten years after the date of grant.

The 2010 Stock Option Plan is the Company’s only equity compensation plan currently in effect. Under the 2010 Stock Option Plan, 500,000 options were authorized for future grant. Options granted under the 2010 Plan are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted. The options expire ten years after the date of grant.

During the 39-week period ended June 27, 2015, options to purchase 136,500 shares of common stock at an exercise price of $29.60 per share expired unexercised.

A summary of stock option activity is presented below:

	2015
	Shares			Weighted Average Exercise Price		Weighted Average Contractual Term		Aggregate Intrinsic Value
Outstanding, beginning of period		704,161		$	21.66		5.7 Years
Options:
Granted		-
Exercised		(28,361	)	$	12.54
Canceled or expired		(136,500	)	$	29.60
Outstanding and expected to vest, end of period		539,300		$	20.12		6.4 Years	$	2,758,920
Exercisable, end of period		436,550		$	14.27		5.8 Years	$	2,758,920

Compensation cost charged to operations for the 39-week periods ended June 27, 2015 and June 28, 2014 was $313,000 and $244,000, respectively, and for the 13-week periods ended June 27, 2015 and June 28, 2014 was $105,000 and $87,000, respectively. The compensation cost recognized is classified as a general and administrative expense in the Consolidated Condensed Statements of Income.

As of June 27, 2015, there was approximately $399,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of approximately one year.