Note 11 - Stock Compensation Plans:

The Amended and Restated 2000 Graham Corporation Incentive Plan to Increase Shareholder Value, as approved by the Company's stockholders at the Annual Meeting on July 28, 2016, provides for the issuance of up to 1,375 shares of common stock in connection with grants of incentive stock options, non-qualified stock options, stock awards and performance awards to officers, key employees and outside directors; provided, however, that no more than 467 shares of common stock may be used for awards other than stock options.  Stock options may be granted at prices not less than the fair market value at the date of grant and expire no later than ten years after the date of grant.

In fiscal 2018, fiscal 2017 and fiscal 2016, 59, 82 and 34 shares, respectively, of restricted stock were awarded.  Restricted shares of 30, 43 and 15 granted to officers in fiscal 2018, fiscal 2017 and fiscal 2016, respectively, vest 100% on the third anniversary of the grant date subject to the satisfaction of the performance metrics for the applicable three-year period.  Restricted shares of 22, 31, and 12 granted to officers and key employees in fiscal 2018, fiscal 2017, and fiscal 2016 respectively, vest 33⅓% per year over a three-year term.  The restricted shares granted to directors of 7, 8 and 7 in fiscal 2018, fiscal 2017 and fiscal 2016, respectively, vest 100% on the first anniversary of the grant date.  The Company recognizes compensation cost over the period the shares vest.

During fiscal 2018, fiscal 2017, and fiscal 2016, the Company recognized $577, $621, and $653, respectively, of stock-based compensation cost related to stock option and restricted stock awards, and $125, $219 and $230, respectively, of related tax benefits.

The Company received cash proceeds from the exercise of stock options of $0, $137 and $97 in fiscal 2018, fiscal 2017 and fiscal 2016, respectively.  In fiscal 2018, fiscal 2017 and fiscal 2016, the Company recognized a $0, $(19) and $5, respectively, (decrease) increase in capital in excess of par value for the income tax (expense) benefit realized upon exercise of stock options and vesting of restricted shares in excess of the tax benefit amount recognized pertaining to the fair value of stock awards treated as compensation expense.

The following table summarizes information about the Company's stock option awards during fiscal 2018, fiscal 2017 and fiscal 2016:

The following table summarizes information about stock options outstanding at March 31, 2018:

The total intrinsic value of the stock options exercised during fiscal 2018, fiscal 2017 and fiscal 2016 was $0, $113 and $71, respectively.  As of March 31, 2018, there was $1,843 of total unrecognized stock-based compensation expense related to non-vested restricted stock.  The Company expects to recognize this expense over a weighted average period of 1.66 years.

The outstanding options expire between May 2018 and May 2022.  Options, stock awards and performance awards available for future grants were 280 at March 31, 2018.

The following table summarizes information about the Company's restricted stock awards during fiscal 2018, fiscal 2017 and fiscal 2016:

The Company has an Employee Stock Purchase Plan (the "ESPP"), which allows eligible employees to purchase shares of the Company's common stock at a discount of up to 15% of its fair market value on the (1) last, (2) first or (3) lower of the last or first day of the six-month offering period.  A total of 200 shares of common stock may be purchased under the ESPP.  In fiscal 2018, fiscal 2017 and fiscal 2016, 7, 15 and 16 shares, respectively, were issued from treasury stock to the ESPP for the offering periods in each of the fiscal years.  During fiscal 2018, fiscal 2017 and fiscal 2016, the Company recognized stock-based compensation cost of $0, $6 and $44, respectively, related to the ESPP and $0, $2 and $16, respectively, of related tax benefits.  The Company recognized a $0, $0 and $1 increase in capital in excess of par value for the income tax benefit realized from disqualifying dispositions in excess of the tax benefit amount recognized pertaining to the compensation expense recorded in fiscal 2018, fiscal 2017 and fiscal 2016, respectively.