STOCK OPTIONS

12 Months Ended

Oct. 01, 2016

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

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

11. 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. 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 year ended October 3, 2015, options to purchase 136,500 shares of common stock at an exercise price of $29.60 per share expired unexercised and options to purchase 3,000 shares of common stock at an exercise price of $22.50 were cancelled.

On April 5, 2016, the shareholders of the Company approved the 2016 Stock Option Plan and the Section 162(m) Cash Bonus Plan. Under the 2016 Stock Option Plan, 500,000 options were authorized for future grant and 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. Under the Section 162(m) Cash Bonus Plan, compensation paid in excess of $1,000,000 to any employee who is the chief executive officer, or one of the three highest paid executive officers on the last day of that tax year (other than the chief executive officer or the chief financial officer) will meet certain “performance-based” requirements of Section 162(m) and the related IRS regulations in order for it to be tax deductible.

No options were granted during the year ended October 1, 2016. The following table summarizes stock option activity under all plans:

	2016							2015
	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value		Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding, beginning of year		523,800		$	20.29				704,161		$	21.66
Options:
Granted		-							-
Exercised		(5,192	)	$	16.26				(40,861	)	$	12.84
Canceled or expired		-							(139,500	)	$	29.36
Outstanding and expected to vest, end of year		518,608		$	20.33	$	1,979,232		523,800		$	20.29	$	2,242,140
Exercisable, end of year		518,608		$	20.33	$	1,979,232		422,300		$	19.76	$	2,191,390
Weighted average remaining  contractual life		5.1 Years							5.5 Years
Shares available for future grant		500,000							43,000

Compensation cost charged to operations for the fiscal years ended October 1, 2016 and October 3, 2015 for share-based compensation programs was approximately $286,000 and $426,000, respectively. The compensation cost recognized is classified as a general and administrative expense in the Consolidated Statements of Income. As of October 1, 2016, there was no unrecognized compensation cost related to unvested stock options.

The following table summarizes information about stock options outstanding as of October 1, 2016:

	Options Outstanding and Exercisable
Range of Exercise Prices	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining contractual life (in years)
$12.04		66,000	$	12.04		2.6
$14.40		160,800	$	14.40		5.7
$22.50		201,808	$	22.50		7.7
$32.15		90,000	$	32.15		0.2
		518,608	$	20.33		5.1