NOTE 4-STOCK BASED COMPENSATION

Under the terms of our 1996 Stock Incentive Plan (the “Plan”), officers and key employees could be granted restricted stock units, as well as non-qualified or incentive stock options. The Plan was terminated in December 2015; however, all grants issued under the Plan prior to its termination will continue to vest, expire or terminate in accordance with the Plan document and the terms of each award.

Share amounts and weighted-average grant date fair values reflect the two-for-one stock split effected on February 24, 2015 and the one quarter of one share of common stock for every one share of common stock dividend effected on April 1, 2016.

Restricted Stock Units

Our outstanding restricted stock unit grants vest over five years in installments of 50% on the fourth anniversary of the grant date and the remaining 50% on the fifth anniversary of the grant date. Unvested restricted shares are forfeited if the recipient’s employment terminates for any reason other than death, disability or special circumstances as determined by the Compensation Committee of the Board of Directors.

Activity for our restricted stock units is as follows:



				Weighted Average
	Restricted Stock	Weighted-Average Grant		Remaining	Aggregate Intrinsic
	Units	Date Fair Value		Contractual Life	Value
	(in thousands)			(years)	(in thousands)
Restricted stock units, December 31, 2015	161	$	3.16	3.3	$	921
Awarded	—	$	—
Released	—	$	—
Forfeited	—	$	—
Restricted stock units, March 31, 2016	161	$	3.16	3.0	$	1,148

The aggregate intrinsic values in the preceding table for the restricted stock units outstanding represent the total pretax intrinsic value, based on our closing stock price of $7.12 and $5.71 as of March 31, 2016 and December 31, 2015, respectively. No restricted stock units vested in the three months ended March 31, 2016 or 2015, repectively.

Stock Options

The exercise price of our stock options is the closing price on the date the options are granted. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Options generally expire 10 years from the date of grant. The following table summarizes the activity for the remaining options outstanding under the Plan:



				Weighted Average
		Weighted Average		Remaining	Aggregate Intrinsic
	Shares	Exercise Price		Contractual Life	Value
	(in thousands)			(years)	(in thousands)
Options outstanding, December 31, 2015	18	$	4.70	1.11	$	22
Granted	—	$	—
Exercised	—	$	—
Cancelled or expired	(6)	$	6.30
Options outstanding, March 31, 2016	12	$	3.97	1.29	$	39
Options exercisable, March 31, 2016	12	$	3.97	1.29	$	39

This intrinsic value represents the excess of the fair market value of our common stock on the date of exercise over the exercise price of such options. The aggregate intrinsic values in the preceding table for the options outstanding represent the total pretax intrinsic value, based on our closing stock price of $7.12 and $5.71 as of March 31, 2016 and December 31, respectively, which would have been received by the option holders had those option holders exercised their in-the-money options as of those dates.

The fair value of stock-based option awards is estimated at the date of grant using the Black-Scholes option pricing model; however, the value calculated using an option pricing model may not be indicative of the fair value observed in a willing buyer/willing seller market transaction, or actually realized by the employee upon exercise. Expected volatility used to estimate the fair value of options granted is based on the historical volatility of our common stock. The risk-free interest rate is based on the United States Treasury constant maturity rate for the expected life of the stock option. The expected life of a stock award is the period of time that the award is expected to be outstanding. We have not granted options since 2008.

The following table provides additional information in regards to options outstanding as of March 31, 2016:


				Options Outstanding				Options Exercisable
									Weighted
Range of Exercise				Number	Weighted Average	Weighted Average		Number	Average Exercise
Price				Outstanding	Remaining Contractual Life	Exercise Price		Exercisable	Price
				(in thousands)	(years)			(in thousands)
$	—	-	1.56	4	2.02	$	1.56	4	$	1.56
$	4.80	-	6.50	8	0.94	$	5.12	8	$	5.12
				12	1.29	$	3.97	12	$	3.97