content_image/201512.jpg
## (a) Stock Options 

The following table is a summary of the balance and activity for the Plans related to stock options for the periods presented: 

<img src='content_image/201512.jpg'>

The expense recorded related to options granted during fiscal 2013 was determined using the Black-Scholes option pricing model and the provisions of Staff Accounting Bulletin (SAB) 107 and 110, which allow the use of a simplified method to estimate the expected term of “plain vanilla” options. The assumptions used in the option pricing model during fiscal 2013 were: (a) dividend yield of 0%; (b) historical volatility of 65%; (c) risk-free interest rates of 1.3%; and (d) an expected life of 6.25 years. The grant date fair value of options granted in 2013 was approximately $0.7 million. 

The expense recorded related to options granted during fiscal 2012 was immaterial. The assumptions used in the option pricing model during fiscal 2011 were: (a) dividend yield of 0%; (b) historical volatility of 65%; (c) risk-free interest rates ranging from 1.2% to 2.5%; 

and (d) an expected life of 6.25 years. The grant date fair value of options granted in 2011 was approximately $1.2 million. The total intrinsic value of options exercised in fiscal 2013 and fiscal 2011 was approximately $0.4 million and $0.1 million, respectively. No options were exercised in 2012. The Company generally issues new shares to satisfy option exercises. 

Shares available for future option, non-vested stock and restricted stock grants were 471,327 and 608,864 at the end of 2013 and 2012, respectively. 

