STOCK-BASED COMPENSATION

All stock-based awards are subject to the terms of the CareTrust REIT, Inc. and CTR Partnership, L.P. Incentive Award Plan (the “Plan”). The Plan provides for the granting of stock-based compensation, including stock options, restricted stock, performance awards, restricted stock units and other incentive awards to officers, employees and directors in connection with their employment with or services provided to the Company.

The following table summarizes restricted stock award activity for the years ended December 31, 2017 and 2016:



	Shares		Weighted Average Share Price
Unvested balance at December 31, 2015	394,697		$	12.56
Granted	20,770		13.13
Vested	(121,899	)	12.60
Forfeited	(7,500	)	10.87
Unvested balance at December 31, 2016	286,068		12.63
Granted	254,534		15.46
Vested	(111,024	)	12.82
Forfeited	(6,667	)	15.21
Unvested balance at December 31, 2017	422,911		$	14.19

The Company recognized $2.4 million, $1.5 million and $1.5 million of compensation expense associated with all grants for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, there was $3.8 million of unamortized stock-based compensation expense related to these unvested awards and the weighted-average remaining vesting period of such awards was 1.8 years.

On June 1, 2014, Ensign completed the separation of its healthcare business and its real estate business into two separate and independent publicly traded companies (the “Spin-Off”). In connection with the Spin-Off, employees of Ensign who had unvested shares of restricted stock were given one share of CareTrust REIT unvested restricted stock totaling 207,580 shares at the Spin-Off. These restricted shares are subject to a time vesting provision only and the Company does not recognize any stock compensation expense associated with these awards. During the year ended December 31, 2017, 27,200 shares vested or were forfeited. At December 31, 2017, there were 14,980 unvested restricted stock awards outstanding.

In February 2017, the Compensation Committee of the Company’s board of directors granted 233,768 shares of restricted stock to officers and employees. Each share had a fair market value on the date of grant of $15.21 per share, based on the market price of the Company’s common stock on that date, and the shares vest in three equal annual installments beginning on the first anniversary of the grant date.

In July 2017, the Compensation Committee of the Company's board of directors granted 20,766 shares of restricted stock to members of the board of directors. Each share had a fair market value on the date of grant of $18.30 per share, based on the market price of the Company's common stock on that date, and the shares vest in full on the earlier to occur of June 30, 2018 or when the Company holds its 2018 Annual Meeting.