10.Stockholders’ Equity and Mezzanine Equity

Stock Based Compensation Plans

The Company granted 110,000 and 400,000 shares of restricted common stock to employees during the three months ended March 31, 2016 and 2015, respectively, as part of the Company’s 2014 Equity Incentive Plan. The shares vest quarterly over a period of three years from the grant date.

The Company granted a total of 30,000 and 12,720 shares of fully vested common stock to its five non-employee directors during the three months ended March 31, 2016 and 2015, respectively. The Company recognized $0.5 million and $0.4 million of compensation expense for the three months ended March 31, 2016 and 2015, respectively, as a result of these grants. The fair value of the fully vested common stock granted during the three months ended March 31, 2016 and 2015 was determined based on the closing price of the Company’s common stock on the grant date.

The Company recognized $2.6 million and $1.6 million in equity-based compensation expense for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was $18.7 million of unrecognized compensation expense related to unvested restricted stock, which is expected to be recognized over the remaining weighted average vesting period of 2.5 years.

A summary of share activity under the Company’s 2014 Equity Incentive Plan is set forth below:

				Weighted-
				average Grant
	Shares			Date Fair Value
Unvested at January 1, 2016		777,019		$	24.99
Granted		140,000			16.24
Vested		(100,209	)		22.43
Forfeitures		(667	)		28.64
Unvested at March 31, 2016		816,143		$	23.81

Employee Stock Purchase Plan

In January 2016, the Company issued 15,445 shares of the Company’s common stock under its Employee Stock Purchase Plan (“ESPP”) at a stock price of $19.06 in connection with employee deductions of $0.2 million contributed in the July 1, 2015 through December 31, 2015 ESPP option period.

For the three months ended March 31, 2016 the Company recognized $0.1 million of compensation expense related to the ESPP. The Company did not recognize any expense related to the ESPP for the three months ended March 31, 2015.

Mezzanine Equity

On February 25, 2015, the Company exercised its call provision and redeemed 100% of the outstanding Series A Preferred Units of Behavioral Healthcare Realty, LLC for a total redemption price of approximately $8.5 million which included $0.2 million for the 3.0% call premium and $0.3 million for unpaid preferred returns.