Share-Based Compensation

6 Months Ended

Jun. 30, 2017

We have two share-based compensation plans; the Sun Communities, Inc. 2015 Equity Incentive Plan (“2015 Equity Incentive Plan”) and the First Amended and Restated 2004 Non-Employee Director Option Plan (“2004 Non-Employee Director Option Plan”). During the three months ended June 30, 2017 and the three months ended March 31, 2017, shares were granted as follows:



Grant Period	Type	Plan	Shares Granted	Grant Date Fair Value Per Share			Vesting Type	Vesting Anniversary	Percentage

Q2 2017	Key Employees	2015 Equity Incentive Plan	2,500	$	84.18	⁽¹⁾	Time Based	April 24, 2019	35.0	%
								April 24, 2020	35.0	%
								April 24, 2021	20.0	%
								April 24, 2022	5.0	%
								April 24, 2023	5.0	%

Q1 2017	Executive Officers	2015 Equity Incentive Plan	100,000	$	79.30	⁽²⁾	Time Based	March 14, 2020	20.0	%
								March 14, 2021	30.0	%
								March 14, 2022	35.0	%
								March 14, 2023	10.0	%
								March 14, 2024	5.0	%

Q1 2017	Executive Officers	2015 Equity Incentive Plan	100,000	$	79.30	⁽²⁾	Market & Performance Conditions	Multiple tranches through March 2022

Q1 2017	Directors	2004 Non-Employee Director Option Plan	15,600	$	79.02	⁽¹⁾	Time Based	February 8, 2020	100.0	%

⁽¹⁾ The fair value of the grant was determined by using the closing price of our common stock on the date the shares were issued.

⁽²⁾ Share-based compensation for restricted stock awards with performance conditions is measured based on an estimate of shares expected to vest. We estimate the fair value of share-based compensation for restricted stock with market conditions using a Monte Carlo simulation.

During the six months ended June 30, 2017 and 2016, 1,500 and 9,349 shares of common stock, respectively, were issued in connection with the exercise of stock options, and the net proceeds received during both periods was $0.1 million.

The vesting requirements for 175,746 restricted shares granted to our executives and employees were satisfied during the six months ended June 30, 2017.