The Company’s 2013 Omnibus Incentive Plan (the “2013 Omnibus Plan”) was approved by shareholders on May 7, 2013 and replaced the 2003 Incentive Stock and Awards Plan (the “2003 Stock Plan”). The 2013 Omnibus Plan also replaced the Company’s Short-Term Incentive Plan (the “STIP”) as of December 31, 2013. The 2003 Stock Plan and the STIP are referred to cumulatively as the “Prior Plans.” No new awards may be granted under the Prior Plans after the respective termination dates, but the Prior Plans continue to govern awards outstanding issued thereunder; outstanding awards will continue in force and effect until vested, exercised or forfeited pursuant to their terms. The 2013 Omnibus Plan provides for both short-term and long-term incentive awards for employees and non-employee directors. Stock-based awards may take the form of stock options, stock appreciation rights, restricted stock, restricted stock units, and performance share or performance unit awards. The total

number of shares of the Company’s common stock available for awards under the 2013 Omnibus Plan is 7,477,395 shares. The total number of shares of the Company’s common stock still available for issuance as of December 31, 2021 is 4,238,315 shares.

The Company recognizes expense net of estimated future forfeitures for all stock-based compensation on a straight-line basis over the vesting period of the entire award. Estimated future forfeitures are based on the Company’s historical experience.

During the year ended December 31, 2021, the Company recorded stock-based compensation expense of $7.1 million recorded in engineering, selling and administrative expense in the Consolidated Statement of Operations.

During the year ended December 31, 2020, the Company recorded stock-based compensation expense of $6.0 million of which $8.5 million was included in engineering, selling and administrative expense and $2.5 million of income was included in restructuring expense in the Consolidated Statement of Operations. Income recorded in restructuring expense was primarily related to the forfeiture of grants associated with employee separation agreements.

Total stock-based compensation expense recognized within engineering, selling and administrative expenses in the Consolidated Statements of Operations $9.5 million during the year ended December 31, 2019.

Shares are issued out of treasury stock upon exercise for stock options and vesting of restricted stock units and performance share units.

Stock option grants to employees are exercisable in three annual increments over a three-year period beginning on the first anniversary of the grant date and expire 10 years subsequent to the grant date.

The Company did not grant employees stock options in 2021. The Company granted stock options to employees to acquire 250,432 and 210,243 shares of common stock during the years ended December 31, 2020 and 2019, respectively. Stock-based compensation expense is calculated by estimating the fair value of non-qualified stock options at the time of grant and is amortized over the stock options’ vesting period. The Company recognized $0.6 million, $1.3 million and $2.7 million of expense before income taxes associated with stock options during 2021, 2020 and 2019, respectively.

A summary of the Company’s stock option activity is as follows:


	Shares			Weighted Average Exercise Price Per Share		Aggregate Intrinsic Value
Options outstanding as of December 31, 2020		1,067,880		$	20.91
Granted		—			—
Exercised		(306,015	)		19.50
Forfeited		(1,327	)		18.40
Cancelled		(135,221	)		24.79
Options outstanding as of December 31, 2021		625,317		$	20.76	$	1.0

Options exercisable as of December 31, 2021		509,911		$	22.22	$	0.5

The Company uses the Black-Scholes valuation model to value stock options. The Company’s volatility assumption was based on a blend of its historical stock price and an average of historical stock prices of selected peers. The assumed risk-free rate was based on U.S. Treasury rates in effect at the time of grant with varying maturities weighted commensurately with the expected life assumption. The expected option life represents the period of time options are expected to be outstanding and is based on historical experience.

The weighted average fair value per share of options granted during the years ended December 31, 2020 and 2019 was $5.35 and $8.07, respectively. The fair value of each option grant was estimated at the date of grant using the following assumptions:


	2020			2019
Expected life (years)		6.5			6.5
Risk-free interest rate		1.2	%		2.6	%
Expected volatility		42.3	%		39.8	%
Expected dividend yield		—	%		—	%

As of December 31, 2021, the Company has $0.2 million of unrecognized compensation expense before income tax related to stock options, which will be recognized over a weighted average period of 1.0 years.

The Company granted 358,255, 333,269 and 178,371 restricted stock units in 2021, 2020 and 2019, respectively. The Company recognized $3.7 million, $3.5 million and $2.4 million of compensation expense associated with restricted stock units during 2021, 2020 and 2019, respectively.

The restricted stock units are earned based on service over the vesting period. Beginning in 2019, restrictions on restricted stock units granted to employees lapse in three annual increments over a three-year period beginning on the first anniversary of the grant date. Prior to 2019, restrictions on restricted stock units granted to employees lapse 100% on the third anniversary of the grant date, assuming continued employment. The expense is based on the fair value of the Company's shares as of the grant date which is the grant date closing stock price.

A summary of activity for restricted stock units is as follows:


	Shares			Weighted Average Grant Date Fair Value Per Share
Unvested as of December 31, 2020		362,293		$	14.87
Granted		358,255			17.59
Vested		(154,099	)		17.36
Forfeited		(14,793	)		16.98
Unvested as of December 31, 2021		551,656		$	15.89

As of December 31, 2021, the Company has $4.8 million of unrecognized compensation expense before income tax related to restricted stock units which will be recognized over a weighted average period of 2.0 years.

The Company granted 159,247, 328,310 and 228,037 of performance share units in 2021, 2020 and 2019, respectively. The performance share units are earned based on service over the vesting period and on the extent to which performance goals are met over the applicable three-year performance period. The performance goals vary for performance share units each grant year. The Company recognized $1.9 million, $0.2 million and $3.4 million of compensation expense associated with performance share units during 2021, 2020 and 2019, respectively.

The performance goals for the performance share granted in 2021 are weighted 60% on the 3-year average of the Company’s adjusted EBITDA percentage from 2021 to 2023 and 40% on non-new machines sales as of the year ended December 31, 2023. The Company defines non-new machine sales as parts sales, used crane sales, rental revenue, service revenue and other revenue. The 2021 performance share include a +/-20% modifier weighted on total shareholder return relative to a defined peer group of companies during the three-year performance period, not to exceed 200% of target shares granted.

The performance share units granted in 2020 are earned based on the extent to which performance goals are met by the Company over a three-year period from January 1, 2020 to December 31, 2022. The performance goals for the performance share units granted in 2020 are based on the 3-year average of the Company’s adjusted EBITDA percentage from continuing operations from 2020 to 2022 with a +/-20% modifier based on total shareholder return relative to a defined peer group of

companies during the three-year performance period, not to exceed 200% of target shares granted. Depending on the forgoing factors, the number of shares earned could range from zero to two times the amount of performance share units outstanding on the vesting date.

The performance share units granted in 2019 are earned based on the extent to which performance goals are met by the Company over a three-year period from January 1, 2019 to December 31, 2021. The performance goals were based fifty percent (50%) on total shareholder return relative to a peer group of companies over the three-year period and fifty percent (50%) on meeting targeted adjusted EBITDA margin at the end of the three-year period. Depending on the foregoing factors, the current number of shares awarded could range from zero to two times the amount of performance share units outstanding on the vesting date.

A summary of activity for performance share units is as follows:


	Shares			Weighted Average Grant Date Fair Value Per Share
Unvested as of December 31, 2020		358,335		$	18.64
Granted		159,247			18.92
Vested		(5,825	)		17.50
Forfeited		(11,073	)		17.25
Unvested as of December 31, 2021		500,684		$	17.45

As of December 31, 2021, the Company has $3.0 million of unrecognized compensation expense before income tax related to performance share units which will be recognized over a weighted average period of 2.0 years.

The expense for the adjusted EBITDA performance share units is based on the fair value of the Company's shares as of the grant date which is the grant date closing stock price. For total shareholder return performance share units, the Company uses the Monte Carlo valuation model to determine fair value of the grants. The Company used an average of historical stock prices of selected peers for its volatility assumption. The assumed risk-free rates were based on three-year U.S. Treasury rates in effect at the time of grant. The fair value of each total shareholder return performance share unit was estimated at the date of grant using the following assumptions:


	2021			2020			2019
Correlation		27.9	%		32.2	%		32.5	%
Risk-free interest rate		0.2	%		1.1	%		2.5	%
Expected volatility		59.0	%		47.5	%		47.0	%
Expected dividend yield		—	%		—	%		—	%

A total of 59,280, 77,608 and 50,673 equity compensation awards were granted to directors in 2021, 2020 and 2019 respectively. The equity compensation awards vested immediately upon the grant date. The Company recognized $1.0 million of compensation expense associated with equity compensation awards to directors in each of the years ended December 31, 2021, 2020 and 2019. The expense is based on the fair value of the Company's shares as of the grant date which is the grant date closing stock price.