The Company has incentive stock plans, the Omnibus Incentive Plan (the Plan”) and the Omnibus Equity Compensation Plan (the Plan”). As a result of the approval of the Plan by the Company’s stockholders at the Company’s annual meeting, grants longer be issued under the Plan.

 

The Company believes that awards of long-term, equity-based incentive compensation will attract and retain directors, officers and employees of the Company and will encourage these individuals to contribute to the successful performance of the Company, which will lead to the achievement of the Company’s overall goal of increasing stockholder value. Awards granted under the Plan be in the form of incentive stock options, non-qualified stock options, shares of restricted or unrestricted stock, stock units, stock appreciation rights or other stock-based awards. Awards be granted subject to the achievement of performance goals or other conditions, and certain awards be payable in stock or cash, or a combination of the two. The Plan is administered by the Compensation Committee of the Company’s Board of Directors (the “Board”), which selects eligible employees, non-employee directors and other individuals to participate in the Plan and determines the type, amount, duration and other terms of individual awards. Grants under the Plan are settled primarily through the issuance of new shares of the Company’s common stock, shares of which were available for future issuance under the Plan as of

 

Stock-based compensation expense is calculated according to FASB ASC Topic , which requires stock-based compensation expense to be accounted for using a fair-value-based measurement. The Company recorded stock-based compensation expense of and during the -month periods ended and respectively. The Company records the compensation expense related to stock-based awards granted to individuals in the same classifications as the cash compensation paid to those same individuals. stock-based compensation costs have been capitalized as part of the cost of an asset as of

The following table represents stock option activity for

the -month periods ended and

:

As of the intrinsic value of both the outstanding and exercisable stock options was There were options exercised during the -month period ended The intrinsic value of the stock options exercised during the -month period ended was The Company received cash from the exercise of stock options during the -month period ended Upon the exercise of stock options, participants choose to surrender to the Company those shares from the option exercise necessary to satisfy the exercise amount and their income tax withholding obligations that arise from the option exercise. The effect on the cash flow of the Company from these “cashless” option exercises is that the Company remits cash on behalf of the participant to satisfy his or her income tax withholding obligations. The Company used cash of to remit the required income tax withholding amounts from “cashless” option exercises during the -month period ended

 

To determine the estimated fair value of stock options granted, the Company uses the Black-Scholes-Merton valuation formula, which is a closed-form model that uses an equation to estimate fair value. The following table sets forth the assumptions used to determine the fair value of the non-qualified stock options which were awarded to certain employees during the -month periods ended and which options vest over a -year period, assuming continued service.

 

For the -month periods ended and the Company recognized compensation expense associated with stock options as follows (in thousands):

 

As of total unrecognized stock option compensation expense amounted to which will be recognized as the underlying stock options vest over a weighted-average period of months. The amount of future stock option compensation expense could be affected by any future stock option grants and by the separation from the Company of any individual who has received stock options that are unvested as of such individual’s separation date.

The Board granted the following shares of non-vested stock to the Company’s non-employee directors:

 

 

These shares vest over a -year period, assuming continued service. The fair value of the non-vested stock granted to the Company’s non-employee directors was based on the closing price of the Company’s common stock on the date of each grant.

 

  The Company maintains a performance bonus plan for certain executive officers that provides for awards of shares of common stock in the event that the aggregate average market value of the common stock during the relevant fiscal year, plus the amount of cash dividends paid in respect of the common stock during such period, increases.

These individuals

instead be awarded cash, if and to the extent that insufficient shares of common stock are available for issuance from all shareholder-approved, equity-based plans or programs of the Company in effect. The performance bonus plan also imposes individual limits on awards and

provides that shares of common stock that be awarded will vest over a -year period. Compensation expense associated with performance bonus plan awards are recognized over a -year period – the fiscal year in which the award is earned, plus the -year vesting period.

 

In connection with the performance bonus plan, the Company granted shares of common stock and recognized or will recognize compensation expense as set forth below:

 

 

The table below sets forth the vesting of shares issued in connection with the grants of shares set forth in the above table. Each of the individuals holding shares that vested surrendered to the Company the number of shares necessary to satisfy the income tax withholding obligations that arose from the vesting of the shares. The table below also sets forth the taxes remitted to the appropriate taxing authorities on behalf of such individuals.

 

 

For the -month periods ended and the Company recognized compensation expense associated with stock grants, which is included in marketing and administrative expenses in the accompanying unaudited condensed consolidated statements of income, as follows (in thousands):

 

As of total unrecognized compensation expense related to the Company’s non-vested stock grants amounted to which will be recognized over the respective vesting terms associated with each block of non-vested stock indicated above, such grants having an aggregate weighted-average vesting term of months. The amount of future compensation expense related to the Company’s non-vested stock grants could be affected by any future non-vested stock grants and by the separation from the Company of any individual who has non-vested stock grants as of such individual’s separation date.