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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation

The Compensation Committee of the Company’s Board of Directors is responsible for the administration of the Company’s stock incentive plans, which include the balance of shares remaining under the 2007 Long Term Incentive Plan (the "2007 LTIP) and the 2011 Long Term Incentive Plan (the "2011 LTIP") which was approved by the shareholders in May 2011 and authorized the maximum aggregate number of shares to be issued of 3,000,000. In general, the Company's 2011 LTIP plan provides for grants of restricted stock and stock options to be issued with a per-share price equal to the fair market value of a share of common stock on the date of grant.  Option terms are specified at each grant date, but are generally are 10 years from the date of issuance.  Options generally vest over a three to five year period.  

Restricted Stock

The following table summarizes the restricted stock activity under the Company's equity incentive plans :
 
Number
of
Shares
 
Weighted
Average
Fair Value
Per Share
Nonvested at January 1, 2013
317,219

 
$
6.46

Granted
24,824

 
$
11.29

Vested
(124,998
)
 
$
7.17

Forfeited/repurchased shares
—

 
$
—

Nonvested at December 31, 2013
217,045

 
$
6.60

Granted
115,726

 
$
11.35

Vested
(96,908
)
 
$
7.35

Forfeited/repurchased shares
—

 
$
—

Nonvested at December 31, 2014
235,863

 
$
8.63

Granted
38,660

 
$
5.82

Vested
(134,545
)
 
$
6.84

Forfeited/repurchased shares
(19,824
)
 
$
11.35

Nonvested at December 31, 2015
120,154

 
$
9.28



Independent directors receive equity compensation in the form of grants.  In November 2013, the Company's independent directors received equity compensation grants of 6,206 shares, with a fair value of $11.29, and in November 2014, the independent directors received equity compensation grants of 6,167 shares, with a fair value of $11.35 per share. Additionally, in November 2014, certain officers and executives of the Company were awarded 84,891 shares with a vesting period of three years and a fair value of $11.35. No shares were granted to independent directors, officers or executives of the Company during 2015, except for the chief operating officer who joined the Company in September 2015. Upon execution of his employment agreement, he was awarded 38,660 shares, with a fair value of $5.82.
  
Stock Options

The following table summarizes the stock option activity under the Company's equity incentive plans:

 
Number
of
Shares
 
Weighted
Average
Exercise
Price
Per Share
 
Weighted
Average
Contractual
Life
(Years)
 
Aggregate
Intrinsic
Value
Outstanding at January 1, 2013
2,283,785

 
$
9.23

 
 
 
 

Granted
35,081

 
$
9.48

 
 
 
 

Exercised
(155,731
)
 
$
5.51

 
 
 
 

Forfeited
(91,378
)
 
$
9.82

 
 
 
 

Outstanding at December 31, 2013
2,071,757

 
$
9.49

 
 
 
 

Granted
233,828

 
$
11.35

 
 
 
 

Exercised
(143,282
)
 
$
6.08

 
 
 
 

Forfeited
(105,405
)
 
$
11.06

 
 
 
 

Outstanding at December 31, 2014
2,056,898

 
$
9.86

 
 
 
 

Granted
143,862

 
$
5.82

 
 
 
 

Exercised
(3,970
)
 
$
6.00

 
 
 
 

Forfeited
(46,890
)
 
$
11.72

 
 
 
 

Outstanding at December 31, 2015
2,149,900

 
$
9.56

 
 
 
 

 
 
 
 
 
 
 
 
Vested at December 31, 2015 and expected to vest
2,132,794

 
$
9.57

 
4.81
 
$
8,672

Exercisable at December 31, 2015
1,740,308

 
$
10.00

 
4.08
 
$
8,672



The Company calculates the fair value of each option on the date of grant using the Black-Scholes pricing model and the following weighted-average assumptions in each year:
 
2015
 
2014
 
2013
Weighted average grant-date fair value of options granted
$
5.82

 
$
6.40

 
$
4.11

Risk-free interest rate
0.97
%
 
1
%
 
1
%
Expected volatility
38
%
 
88.5
%
 
62.4
%
Expected term of options (in years)
3.0

 
3.0

 
3.2

Dividend yield
—
%
 
—
%
 
—
%


The risk-free interest rate is based on interest rates on U.S. Treasury zero-coupon issues that match the contractual terms of the stock option grants.  The expected term represents the period in which the Company’s equity awards are expected to be outstanding, which for the years presented is based on the exercise history.

For years ended December 31, 2015, 2014 and 2013, compensation expense related to stock based awards outstanding for the periods was $2.3 million, $1.6 million and $2.1 million, respectively. The Company applies a 5.5% forfeiture rate to its option grants.

Certain officers and executives of the Company were awarded 233,828 shares with a vesting period of three years and a fair value of $11.35 for the year ended December 31, 2014. No shares were awarded to officers or executives of the Company as of the year ended December 31, 2013. No shares were awarded to officers or executives of the Company as of the year ended December 31, 2015, except for the chief operating officer who joined the Company in September 2015. Upon execution of his employment agreement, he was granted 143,862 shares, with a fair value of $5.82.

In the year ended December 31, 2015, the Company received proceeds of approximately $28,000 upon the exercise of 3,970 options. In the year ended December 31, 2014, proceeds of $869,000 upon the exercise of 143,282 options and in the year ended December 31, 2013, 155,731 options were exercised, generating proceeds of $858,000.

As of December 31, 2015, there was $2.3 million of unrecognized compensation cost, net of estimated forfeitures, related to the Company’s non-vested equity awards, which is expected to be recognized over a weighted average period of 2.0 years.

 
2015
 
2014
 
2013
Total intrinsic value of options exercised
$
17

 
$
494

 
$
804

Total fair value of shares vested
$
1,226

 
$
923

 
$
1,457