12. Stock-Based Compensation

The Company's 2014 Long-Term Incentive Plan (the "2014 Incentive Plan"), was adopted by our board of directors in January 2014. The 2014 Incentive Plan provides for the grant of equity-based awards, including options to purchase shares of common stock, stock appreciation rights, restricted and unrestricted stock awards, restricted stock units and performance awards. The 2014 Incentive Plan will automatically expire on the tenth anniversary of its effective date.

The number of shares of our common stock that are authorized to be issued under the 2014 Incentive Plan is 1,644,875 shares. To the extent that shares of the Company's common stock subject to an outstanding option, stock appreciation right, stock award or performance award granted under the 2014 Incentive Plan or any predecessor plan are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or the settlement of such award in cash, then such shares of common stock generally shall again be available under the 2014 Incentive Plan.

At our 2016 Annual Meeting of Shareholders on May 24, 2016, our shareholders approved the Company's 2016 Incentive Award Plan (the "2016 Incentive Plan"). The 2016 Incentive Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units and other stock- or cash-based awards. Non-employee directors of the Company and employees and consultants of the Company, or any of its subsidiaries, are eligible to receive awards under the 2016 Incentive Plan. The 2016 Incentive Plan authorizes the issuance of 800,000 shares of common stock, subject to certain limitations. The 2016 Incentive Plan will expire on February 23, 2026.

The Company has issued stock option and restricted stock unit awards under the 2014 Incentive Plan and restricted stock unit awards under the 2016 Incentive Plan. As of December 31, 2017, 46,405 shares remain available for grant under the 2014 Incentive Plan and 470,524 shares remain available for grant under the 2016 Incentive Plan. The exercise price of stock-based awards may not be less than the market value of the Company's common stock on the date of grant. The fair value for stock options is established at the date of grant using the Black-Scholes model for time-based vesting awards. The Company's stock option and restricted stock unit awards typically vest over a one to three year period and the stock options expire ten years from the date of grant.

A summary of the Company’s common stock option activity as of and for the years ended December 31, 2017, 2016 and 2015 is presented below:



	Year Ended December 31,
	2017				2016				2015
	Number of Shares		Weighted-Average Exercise Price per Share		Number of Shares		Weighted-Average Exercise Price per Share		Number of Shares		Weighted-Average Exercise Price per Share
Outstanding Stock Option Activity
Outstanding, beginning of period	835,786		$	11.00	840,298		$	11.00	846,874		$	11.00
Granted	—		$	—	—		$	—	—		$	—
Exercised	(9,288	)	$	11.00	—		$	—	(1,584	)	$	11.00
Forfeited	—		$	—	(4,512	)	$	11.00	(4,992	)	$	11.00
Outstanding, end of period	826,498		$	11.00	835,786		$	11.00	840,298		$	11.00
Exercisable, end of period	826,498		$	11.00	42,042		$	11.00	23,133		$	11.00

A summary of the Company’s restricted stock unit activity as of and for the years ended December 31, 2017, 2016 and 2015 is presented below:



	Year Ended December 31,
	2017				2016				2015
	Number of Shares		Weighted-Average Grant-Date Fair Value per Share		Number of Shares		Weighted-Average Grant-Date Fair Value per Share		Number of Shares		Weighted-Average Grant-Date Fair Value per Share
Restricted Stock Unit Activity
Outstanding, beginning of period	474,989		$	10.66	308,386		$	14.20	112,233		$	11.36
Granted	343,933		$	10.84	414,045		$	10.05	294,355		$	14.46
Vested	(211,475	)	$	10.76	(231,633	)	$	14.22	(85,386	)	$	11.48
Forfeited	(45,365	)	$	10.79	(15,809	)	$	11.62	(12,816	)	$	13.44
Outstanding, end of period	562,082		$	10.72	474,989		$	10.66	308,386		$	14.20

The expense related to the Company's stock-based compensation programs, included in general and administrative expense in the accompanying consolidated statements of operations, was as follows:



	Year Ended December 31,
	2017		2016		2015
	(Dollars in thousands)
Expense related to:
Stock options	$	11	$	1,054	$	1,184
Restricted stock units	2,792		2,417		2,700
	$	2,803	$	3,471	$	3,884

The Company granted stock options on January 30, 2014 that fully vested on January 30, 2017. Assumptions used to calculate the weighted-average grant date fair value of the common stock options included an expected term of 4.3 years, expected volatility of 49.0%, a risk-free interest rate of 1.2% and no expected dividends. Based on these inputs, the weighted-average grant date fair value per share equaled $4.43.

The following table presents details of the assumptions used to calculate the re-measurement date fair value of common stock options granted to Mr. Davis by the Company in accordance with ASC 505-50 as discussed in Note 1. Mr Davis' stock options fully vested on January 30, 2017 and were fully expensed. The below reflects fair value assumptions at January 30, 2017.



	Period Ended January 30,			Year Ended December 31,
	2017			2016			2015
Expected term (in years)	1.0			1.1			2.1
Expected volatility	34.9		%	36.7		%	28.2		%
Risk-free interest rate	0.8		%	0.9		%	1.1		%
Expected dividends	—			—			—
Re-measurement date fair value per share	$	1.32		$	2.14		$	3.21

We used the "simplified method" to establish the expected term of the common stock options granted by the Company. Our restricted stock unit awards are valued based on the closing price of our common stock on the date of grant. At December 31, 2017, the amount of unearned stock-based compensation currently estimated to be expensed through 2020 is $3.7 million. The weighted-average period over which the unearned stock-based compensation is expected to be recognized is 1.7 years. If there are any modifications or cancellations of the underlying unvested awards, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense.