9.	Stock-based Compensation

Stock Option Plans

In May of 2008, the Company adopted the 2008 Long-term Incentive Plan (“2008 Plan”) which provides for the grant of stock options, stock appreciation rights and restricted stock to certain designated employees of the Company, non-employee directors of the Company and certain other persons performing significant services for the Company as designated by the Compensation Committee of the Board of Directors. At December 31, 2014, the number of common shares reserved for issuance under the 2008 plan was 1,250,000. Options granted under the plan vest either (i) over a 48-month period at the rate of 25% each year until fully vested or (ii) over a vesting period determined by the Board of Directors. This plan was replaced in April 2015 by the 2015 Long term-Incentive Plan and all remaining shares were made available under this plan.

In April of 2015, the Company adopted the 2015 Long-term Incentive Plan (“2015 Plan”) which provides for the grant of stock options, stock appreciation rights and restricted stock to certain designated employees of the Company, non-employee directors of the Company and certain other persons performing significant services for the Company as designated by the Compensation Committee of the Board of Directors. At December 31, 2015, the number of common shares and restricted stock reserved for issuance under the 2015 plan was 1,000,000 and 200,000, respectively. Options granted under the plan vest either (i) over a 48-month period at the rate of 25% each year until fully vested (ii) over a 48-month period at the rate of 6.25% each quarter until fully vested or (iii) over a vesting period determined by the Board of Directors. This plan was replaced in May 2016 by the 2015 Amended and Restated Long-term Incentive Plan and all remaining shares were made available under the Amended and Restated 2015 Long-term Incentive Plan.

In May of 2016, the Company adopted the Amended and Restated 2015 Long-term Incentive Plan (“Amended and Restated 2015 Plan”) which provides for the grant of stock options, stock appreciation rights and restricted stock to certain designated employees of the Company, non-employee directors of the Company and certain other persons performing significant services for the Company as designated by the Compensation Committee of the Board of Directors. Options granted under the plan vest either (i) over a 48-month period at the rate of 25% each year until fully vested (ii) over a 48-month period at the rate of 6.25% each quarter until fully vested or (iii) over a vesting period determined by the Board of Directors. As of December 31, 2016, there were 2,157,517 shares available for future grant under the Amended and Restated 2015 Plan.

The Company’s stock options have a maximum term of 10 years from the date of grant. Options granted prior to 2006 have a 10-year term. Since 2006, the Company has been granting stock options with a 7-year term.

A summary of the status of the Company’s stock option plans as of December 31, 2016 is as follows:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (year)	Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2015		1,019,684		$	7.30	5.46	$	3,607
Granted		657,500			7.56
Exercised		—			—
Forfeited		(161,125	)		8.76
Outstanding, December 31, 2016		1,516,059		$	7.25	5.19	$	48
Vested		550,408			7.44	4.08		31
Unvested		965,651			7.15	5.82		17
Vested or expected to vest, December 31, 2016		1,516,059		$	7.25	5.19	$	48
Exercisable, December 31, 2016		550,408		$	7.44	4.08	$	31

Included in the table above are 243,000 options granted to non-employees during 2015 with a weighted average exercise price of $6.10.

The intrinsic value of options exercised in 2015 and 2014, were $21,436 and $10,161 . There were no options exercised in 2016.

As of December 31, 2016, there was $3.3 million of total unrecognized compensation costs related to non-vested options. The remaining cost is expected to be recognized over a weighted average period of 2.83 years.

Restricted stock grants consist of grants of the Company’s common stock that may vest in the future. The Board has set a one, two, or four year vesting period for most of the issued restricted shares except annual grants to independent Directors which vest at the next annual meeting of stockholders. The fair value of each restricted share grant is equal to the market price of the Company’s common stock at the date of grant. Expense relating to restricted shares is recorded at the closing price on the grant date and amortized ratably over the vesting period. As of December 31, 2015, there were 225,720 restricted shares available for future grant under the 2015 plan. As of December 31, 2016, restricted shares available for future grant were included in the 2,157,517 shares under the Amended and Restated 2015 Plan.

A summary of the Company’s restricted stock activity and related information for the year ended December 31, 2016 is as follows:

	Shares			Weighted Average Grant Date Fair Value
Unvested, December 31, 2015		12,645		$	11.86
Granted		42,203		$	7.40
Vested		(13,915	)	$	11.41
Forfeited		—		$	—
Unvested, December 31, 2016		40,933		$	7.42

As of December 31, 2016, there was $0.2 million of total unrecognized compensation costs related to non-vested restricted share-based compensation. The remaining cost is expected to be recognized over a weighted average period of 0.58 years. The total fair value of shares vested during the year ended December 31, 2016 was $0.2 million.