10.SHARE-BASED COMPENSATION

Summary of Share-Based Compensation Plans

In December 2015, the Company’s Board of Directors adopted the Aralez Pharmaceuticals 2016 Long-Term Incentive Plan, which became effective on February 5, 2016, upon consummation of the Merger. On May 3, 2017, the Company’s shareholders approved the Amended and Restated 2016 Long-Term Incentive Plan (the “Plan”), which increased the number of common shares covered by and reserved for issuance under this Plan by 4,300,000 common shares. The Plan is the only existing plan in which the Company is authorized to grant equity-based awards. The Plan provides for grants of stock options, stock appreciation rights, stock awards, stock units, performance shares, performance units, and other stock-based awards to employees, directors, and consultants. At June 30, 2017, there were approximately 2,206,000 common shares remaining available for grant under the Plan.

Summary of Share-Based Compensation Expense

Share-based compensation expense recorded in the condensed consolidated statements of operations for the three and six months ended June 30, 2017 and 2016, was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016

Selling, general and administrative	$	2,949	$	2,633	$	5,769	$	6,216
Research and development		4		—		8		327
Total non-cash share-based compensation expense	$	2,953	$	2,633	$	5,777	$	6,543

Included in the table above is approximately $0.5 million of share-based compensation expense related to the accelerated vesting of certain Tribute equity awards upon consummation of the Merger, which was recorded as selling, general and administrative expense in the first quarter of 2016. There was no such charge for the three or six months ended June 30, 2017.

Options to Purchase Common Shares

A summary of option activity for the three months ended June 30, 2017 is as follows:


		Weighted-		Weighted-
		Average		Average
	Underlying	Exercise		Remaining	Intrinsic
Stock Option Awards	Shares	Price		Contractual Term	Value
Outstanding at December 31, 2016	3,065	$	5.85	4.8 years
Granted	1,489	$	1.77
Exercised	(41)	$	2.63
Forfeited or expired	(488)	$	9.79
Outstanding at June 30, 2017	4,025	$	3.89	6.6 years	$	—

Exercisable at June 30, 2017	1,989	$	5.26	2.4 years	$	—

The weighted average grant date fair value for option awards granted during the six months ended June 30, 2017 was $1.18 per option.

As of June 30, 2017, there was approximately $5.3 million of unrecognized compensation costs related to option awards, which are expected to be recognized over a remaining weighted average period of 2.2 years.

RSUs and PSUs

A summary of RSUs, including performance restricted stock units (“PSUs”), activity for the three months ended June 30, 2017, is as follows:


		Weighted-
	Underlying	Average
	Underlying	Grant Date
Restricted Stock Units, including PSUs	Shares	Fair Value
Nonvested restricted stock units at December 31, 2016	4,324	$	6.62
Granted	1,967	$	2.04
Vested	(1,150)	$	6.89
Forfeited or expired	(38)	$	4.95
Nonvested restricted stock units at June 30, 2017	5,103	$	4.81

During the six months ended June 30, 2017, approximately 1,072,000 PSUs with both market-based and service conditions were granted with an aggregate grant-date fair value of $2.5 million. The PSUs vest at the end of a three-year performance period based on the achievement of pre-determined market-based performance goals.

As of June 30, 2017, there was approximately $21.4 million of unrecognized compensation costs related to RSUs, which are expected to be recognized over a remaining weighted average period of 2.0 years.