Note 9—Management Incentive Plans

Stock-based compensation is included in general and administrative expenses on the accompanying condensed consolidated statements of income. The stock-based compensation expense related to the 2014 Omnibus Incentive Plan and to units issued under The Habit Restaurants, LLC Management Incentive Plan is summarized in the table below for the periods indicated: (in thousands)

	13 Weeks Ended
	March 27,		March 28,
	2018		2017
Stock-based compensation expense	$	667	$	498

2014 Omnibus Incentive Plan

Prior to the completion of the Company’s IPO, the board of directors adopted The Habit Restaurants, Inc. 2014 Omnibus Incentive Plan (the “2014 Omnibus Incentive Plan”) and, subsequent to the IPO, all equity-based awards have been granted under the 2014 Omnibus Incentive Plan. The 2014 Omnibus Incentive Plan also permits grants of cash bonuses beginning in fiscal year 2015. This plan authorizes 2,525,275 total options and restricted stock units. No awards may be granted under the plan after November 19, 2024.

The purpose of the 2014 Omnibus Incentive Plan is to advance the Company’s interests by providing for the grant to eligible individuals of equity-based and other incentive awards.

The 2014 Omnibus Incentive Plan is administered by our board of directors or a committee of our board of directors (the “Administrator”). The Administrator has the authority to, among other things, interpret the 2014 Omnibus Incentive Plan, determine eligibility for, grant and determine the terms of awards under the 2014 Omnibus Incentive Plan, and to do all things necessary to carry out the purposes of the 2014 Omnibus Incentive Plan. The Administrator’s determinations under the 2014 Omnibus Incentive Plan are conclusive and binding. The Administrator will determine the time or times at which an award will vest or become exercisable. The maximum term of an award will not exceed ten years from the date of grant.

Non-Qualified Stock Options

The following table sets forth information about the fair value of the non-qualified stock option grants on the date of grant using the Black-Scholes option-pricing model and the weighted average assumptions used for such a grant for the 13 weeks ended March 27, 2018:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding and expected to vest at December 26, 2017		961,668		$	19.41	8.6		$	—
Granted		8,000		$	8.80
Forfeited		(17,114	)	$	20.54
Exercised		—		$	—
Outstanding and expected to vest at March 27, 2018		952,554		$	19.14		8.4	$	—
Exercisable at March 27, 2018		274,941		$	20.68		8.0	$	—

The aggregate intrinsic value in the table above is obtained by subtracting the weighted average exercise price from the fair value of the underlying common stock as of March 27, 2018 and multiplying this result by the related number of options outstanding and expected to vest at March 27, 2018. The fair value of the common stock as of March 27, 2018 used in the above calculation was $8.75 per share, the closing price of the Company’s Class A common stock on March 27, 2018, the last trading day of the first quarter.

There was approximately $3.0 million of total unrecognized compensation costs related to options granted under the Plan as of March 27, 2018. That cost is expected to be recognized over a weighted average period of 3.3 years.

Restricted Stock Units

A summary of stock-based compensation activity related to restricted stock units for the 13 weeks ended March 27, 2018 are as follows:

	Units			Weighted Average Fair Value		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding and expected to vest at December 26, 2017		250,552		$	18.66		8.7	$	2,380,244
Granted		21,046		$	8.80
Forfeited		(4,976	)	$	19.88
Vested		(43,328	)	$	17.15
Outstanding and expected to vest at March 27, 2018		223,294		$	18.00		7.7	$	1,953,823

The aggregate intrinsic value in the table above is obtained by multiplying the related number of units outstanding and expected to vest at March 27, 2018 by the fair value of the common stock as of March 27, 2018. The fair value of the common stock as of March 27, 2018 used in the above calculation was $8.75 per share, the closing price of the Company’s common stock on March 27, 2018, the last trading day of the first quarter.

The fair value of the restricted stock units is the quoted market value of our common stock on the date of grant. As of March 27, 2018, total unrecognized stock-based compensation expense related to non-vested restricted stock units was approximately $3.2 million. That cost is expected to be recognized over a weighted average period of 3.3 years.

The Habit Restaurants, LLC Management Incentive Plan

In connection with the IPO, the Company converted all of the outstanding vested and unvested Class C units into an equivalent amount of vested and unvested LLC Units of The Habit Restaurants, LLC, respectively. As of March 27, 2018 there was approximately $0.8 million of total unrecognized stock-based compensation expense related to these units. That cost is expected to be recognized over a weighted average period of 1.0 years.