For restricted stock awards and stock options, we had:



	2014		2013		2012
	(In millions)
Recognized stock compensation expense	$	17.4	$	16.1	$	11.4
Capitalized stock compensation cost for our oil and natural gas properties	3.7		3.5		2.7
Tax benefit on stock based compensation	6.7		6.2		4.5

The remaining unrecognized compensation cost related to unvested awards at December 31, 2014 is approximately $17.4 million of which $2.7 million is anticipated to be capitalized. The weighted average period of time over which this cost will be recognized is 0.8 of a year.

At our annual meeting of stockholders held on May 2, 2012, our stockholders approved the Unit Corporation Stock and Incentive Compensation Plan Amended and Restated May 2, 2012 (the amended plan). The amended plan allows us to grant stock-based and cash-based compensation to our employees (including employees of subsidiaries) as well as non-employee directors. The amended plan succeeds the Non-employee Directors' 2000 Stock Option Plan (the option plan), with 2011 being the last year options were granted under the option plan.

The amended plan allows for the issuance of 3.3 million shares of common stock with 2.0 million shares being the maximum number of shares that can be issued as “incentive stock options.” Awards under this plan may be granted in any one or a combination of the following:


•	incentive stock options under Section 422 of the Internal Revenue Code;


•	non-qualified stock options;


•	performance shares;


•	performance units;


•	restricted stock;


•	restricted stock units;


•	stock appreciation rights;


•	cash based awards; and


•	other stock-based awards.

This plan also contains various limits as to the amount of awards that can be given to an employee in any fiscal year. All awards are generally subject to the minimum vesting periods, as determined by our Compensation Committee and included in the award agreement.

Expected volatilities are based on the historical volatility of our stock. We use historical data to estimate option exercise and termination rates within the model and aggregate groups that have similar historical exercise behavior for valuation purposes. To date, we have not paid dividends on our stock. The risk free interest rate is computed from the United States Treasury Strips rate using the term over which it is anticipated the grant will be exercised.

SARs

Activity pertaining to SARs granted under the Unit Corporation Stock and Incentive Compensation Plan is as follows:



	Number of Shares		Weighted Average Price
Outstanding at January 1, 2012	145,901		$	46.59
Granted	—		—
Exercised	—		—
Forfeited	—		—
Outstanding at December 31, 2012	145,901		46.59
Granted	—		—
Exercised	—		—
Forfeited	—		—
Outstanding at December 31, 2013	145,901		46.59
Granted	—		—
Exercised	(14,131	)	46.50
Forfeited	—		—
Outstanding at December 31, 2014	131,770		$	46.60

There were no SARs granted or vested during 2014, 2013, or 2012.



	Outstanding and exercisable SARs at December 31, 2014
Exercise Prices	Number of Shares	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$44.31	91,255	3.0 years	$44.31
$51.76	40,515	1.9 years	$51.76

The intrinsic value of SARs exercised in 2014 was $0.2 million. No cash is received from SARs exercised. The SARs expire after 10 years from the date of the grant. There was no aggregate intrinsic value on the 131,770 shares outstanding at December 31, 2014. The remaining weighted average contractual term is 2.6 years.

Restricted Stock

Activity pertaining to restricted stock awards granted under the amended plan is as follows:



Employees	Number of Shares		Weighted Average Price
Nonvested at January 1, 2012	447,961		$	47.44
Granted	376,445		47.37
Vested	(220,788	)	45.66
Forfeited	(14,091	)	45.37
Nonvested at December 31, 2012	589,527		48.11
Granted	453,549		48.20
Vested	(248,003	)	46.46
Forfeited	(18,330	)	47.85
Nonvested at December 31, 2013	776,743		48.70
Granted	455,122		53.72
Vested	(304,804	)	49.68
Forfeited	(26,775	)	51.92
Nonvested at December 31, 2014	900,286		$	50.81



Non-Employee Directors	Number of Shares		Weighted Average Price
Nonvested at January 1, 2012	—		$	—
Granted	24,606		40.23
Vested	—		—
Forfeited	—		—
Nonvested at December 31, 2012	24,606		$	40.23
Granted	21,128		41.65
Vested	(10,030	)	40.23
Forfeited	—		—
Nonvested at December 31, 2013	35,704		$	41.07
Granted	13,768		63.91
Vested	(14,336	)	40.93
Forfeited	—		—
Nonvested at December 31, 2014	35,136		$	50.08

The restricted stock awards vest in periods ranging from 2 to 3 years, except for a portion of those granted to certain executive officers. As to those executive officers, 40% of the shares granted, or 71,674 shares in 2014, and 30% of the shares granted, or 57,405 shares in 2013, and 46,441 shares in 2012 (the performance shares), will cliff vest in the first half of 2017, 2016, and 2015, respectively. The actual number of performance shares that vest in 2015, 2016, and 2017 will be based on the company’s achievement of certain stock performance measures at the end of the term, and will range from 0% to 150% of the restricted shares granted as performance shares. Based on the selected performance criteria, the participants are estimated to receive the targeted amount (or approximately 100%) of the performance based shares.

The fair value of the restricted stock granted in 2014, 2013, and 2012 at the grant date was $24.1 million, $21.3 million, and $16.9 million, respectively. The aggregate intrinsic value of the 319,140 shares of restricted stock that vested in 2014 on their vesting date was $20.2 million. The aggregate intrinsic value of the 935,422 shares of restricted stock outstanding subject to vesting at December 31, 2014 was $31.9 million with a weighted average remaining life of 0.7 of a year.

Employee Stock Option Plan

The Stock Option Plan, provided the granting of options for up to 2,700,000 shares of common stock to officers and employees. The option plan permitted the issuance of qualified or nonqualified stock options. Options granted typically became exercisable at the rate of 20% per year one year after being granted and expire after 10 years from the original grant date. The exercise price for options granted under this plan was the fair market value of the common stock on the date of the grant. In 2006, as a result of the approval of the adoption of the Unit Corporation Stock and Incentive Compensation Plan, no further awards were made under this plan.

Activity pertaining to the Stock Option Plan is as follows:



	Number of Shares		Weighted Average Exercise Price
Outstanding at January 1, 2012	138,980		$	31.39
Granted	—		—
Exercised	(18,850	)	20.38
Forfeited	(2,100	)	37.83
Outstanding at December 31, 2012	118,030		33.03
Granted	—		—
Exercised	(48,110	)	26.09
Forfeited	(1,000	)	37.83
Outstanding at December 31, 2013	68,920		37.81
Granted	—		—
Exercised	(21,490	)	37.83
Forfeited	(37,930	)	37.83
Outstanding at December 31, 2014	9,500		$	37.69

There were no shares that vested in 2014, 2013, or 2012. The intrinsic value of options exercised in 2014 was $0.4 million. Total cash received from the options exercised in 2014 was $0.4 million.



	Outstanding and Exercisable Options at December 31, 2014
Exercise Price	Number of Shares	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$37.69	9,500	0.4 years	$37.69

There was no aggregate intrinsic value on the 9,500 shares outstanding subject to options at December 31, 2014. The remaining weighted average contractual term is 0.4 of a year.

Non-Employee Directors' Stock Option Plan

Under the Unit Corporation 2000 Non-Employee Directors’ Stock Option Plan, on the first business day following each annual meeting of shareholders, each person who was then a member of our Board of Directors and who was not then an employee of the company or any of its subsidiaries was granted an option to purchase 3,500 shares of common stock. The option price for each stock option was the fair market value of the common stock on the date the stock options were granted. The term of each option is 10 years and cannot be increased and no stock options were to be exercised during the first six months of its term except in case of death. As mentioned above, on May 2, 2012, our stockholders approved the amended plan which succeeds this plan, and no further awards were made under the non-employee director option plan.

Activity pertaining to the Directors’ Plan is as follows:



	Number of Shares		Weighted Average Exercise Price
Outstanding at January 1, 2012	199,500		$	48.37
Granted	—		—
Exercised	(7,000	)	20.28
Forfeited	—		—
Outstanding at December 31, 2012	192,500		49.39
Granted	—		—
Exercised	(17,500	)	32.53
Forfeited	(3,500	)	20.46
Outstanding at December 31, 2013	171,500		51.70
Granted	—		—
Exercised	(21,000	)	33.94
Forfeited	—		—
Outstanding at December 31, 2014	150,500		$	54.18

The intrinsic value of the 21,000 options exercised in 2014 was $0.6 million. Total cash received from options exercised in 2014 was $0.7 million.



	Outstanding and Exercisable Options at December 31, 2014
Weighted Average Exercise Price	Number of Shares	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$31.30 - $41.21	45,500	4.2 years	$	37.88
$53.81 - $73.26	105,000	3.5 years	$	61.24

The aggregate intrinsic value of the shares outstanding subject to options at December 31, 2014 was less than $0.1 million with a weighted average remaining contractual term of 3.7 years.