IHC and AMIC each have share-based compensation plans. The following is a summary of the activity pertaining to each of these plans.

Under the terms of IHC’s stock-based compensation plan, option exercise prices are more than or equal to the quoted market price of the shares at the date of grant; option terms are generally five years; and vesting periods are generally three years. The fair value of an option award is estimated on the date of grant using the Black-Scholes option valuation model. In addition to stock options, the Company has also granted restricted stock units and share appreciation rights (“SARs”) under the plan. Restricted share units are valued at the quoted market price of the shares at the date of grant and have a three year vesting period. Compensation costs for options and restricted share units are recognized over the stated vesting periods on a straight-line basis. Exercise prices of SARs are more than or equal to the quoted market price of IHC shares at the date of the grant and have three year vesting periods. The fair value of SARs is calculated using the Black-Scholes valuation model at the grant date and each subsequent reporting period until settlement. Compensation cost is based on the proportionate amount of the requisite service that has been rendered to date. Once fully vested, changes in fair value of the SARs continue to be recognized as compensation expense in the period of the change until settlement.

At March 31, 2016, there were no shares available for future stock-based compensation grants under IHC’s stock incentive plans. The following table summarizes share-based compensation expense, which is included in selling, general and administrative expenses on the Condensed Consolidated Statements of Income, applicable to the IHC plans, by award type for each of the periods indicated (in thousands):

		Three Months Ended
		March 31,
		2016		2015
IHC’s Share-based Compensation Plan:
Stock options	$	170	$	55
Restricted stock units		23		21
SARs		258		(29)

Share-based compensation expense, pre-tax		451		47
Tax benefits		180		19

Share-based compensation expense, net	$	271	$	28

In the first quarter of 2016, option agreements affecting 13 employees were modified to extend the expirations of their terms from 2017 to 2019 and as a result, the Company recorded incremental compensation costs of $170,000.

The following table summarizes information regarding IHC’s outstanding and exercisable options:

As of March 31, 2016, all of IHC’s outstanding stock options are fully vested and all of the related compensation costs have been recognized.

At March 31, 2016 and December 31, 2015, there were 14,850 unvested restricted stock units outstanding with a weighted average grant-date fair value of $12.26 per share.

As of March 31, 2016, the total unrecognized compensation expense related to non-vested restricted stock unit awards was $106,000 which is expected to be recognized over the remaining requisite weighted-average service period of 1.5 years.

IHC had 123,000 and 125,850 of SAR awards outstanding at March 31, 2016 and December 31, 2015, respectively. In the first quarter of 2016, 2,850 SARs were exercised with an aggregate intrinsic value of $16,000. Included in Other Liabilities in the Company’s Condensed Consolidated Balance Sheets at March 31, 2016 and December 31, 2015 are liabilities of $985,000 and $743,000, respectively, pertaining to SARs.

Under the terms of the AMIC’s stock-based compensation plan, option exercise prices are equal to the quoted market price of the shares at the date of grant; option terms are ten years; and have various vesting criteria depending on the grant with most grants vesting ratably over four years. The Company may also grant shares of restricted stock, stock appreciation rights and share-based performance awards.

The following table summarizes share-based compensation expense, which is included in selling, general and administrative expenses on the Condensed Consolidated Statements of Income, applicable to the AMIC share-based compensation plans, by award type for each of the periods indicated (in thousands):

		Three Months Ended
		March 31,
		2016		2015
AMIC’s Share-based Compensation Plans:
Stock options	$	11	$	11

Share-based compensation expense, pre-tax		11		11
Tax benefits		4		4

Share-based compensation expense, net	$	7	$	7

AMIC’s stock option activity for the three months ended March 31, 2016 is as follows:

The following table summarizes information regarding AMIC’s outstanding and exercisable options as of March 31, 2016:

During the first quarter of 2016, AMIC received $145,000 in cash from the exercise of stock options with aggregate intrinsic values of $(2,000).

As of March 31, 2016, the total unrecognized compensation expense related to AMIC’s non-vested options was $29,000 which will be recognized over the remaining requisite service periods.