10.	Equity Plans:

Stock Options

In January 1994, the Stock Option Plan (Option Plan) was adopted by the Board of Directors and approved by the shareholders of the Company. The Option Plan terminated on January 5, 2009. Termination of the Option Plan did not affect outstanding options. A total of 1,300,000 shares of common stock were originally reserved for issuance under the Option Plan. To the extent possible, shares of treasury stock were used to satisfy shares resulting from the exercise of stock options. Options vested over periods ranging from six months to five years and all expire 10 years after the grant date.

The following table summarizes stock-based award activity during the year ended December 31, 2015:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2014		20,170		$	32.63
Granted		-			-
Exercised		-			-
Canceled		(1,000	)		32.63
Outstanding at December 31, 2015		19,170		$	32.63		1.3	$	-
Exercisable at December 31, 2015		19,170		$	32.63		1.3	$	-

There were no stock options exercised during 2015. There were 7,000 and 11,667 stock options exercised during 2014 and 2013, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2014 and 2013 was $103 thousand and $218 thousand, respectively. Net cash proceeds from the exercise of stock options, exclusive of income tax benefits, were $86 thousand for both years ended December 31, 2014 and 2013. Income tax benefits of $40 thousand and $83 thousand were realized from stock option exercises during the years ended December 31, 2014 and 2013, respectively.

Restricted Stock Units

Pursuant to the Olympic Steel 2007 Omnibus Incentive Plan (Plan), the Company may grant stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, and other stock- and cash-based awards to employees and Directors of, and consultants to, the Company and its affiliates. Under the Plan, 500,000 shares of common stock are available for equity grants.

On March 1, 2015, March 1, 2014 and January 2, 2013, the Compensation Committee of the Company’s Board of Directors approved the grant of 4,639, 2,544 and 1,800 restricted stock units (RSUs), respectively, to each non-employee Director. Subject to the terms of the Plan and the RSU agreement, the RSUs vest after one year of service (from the date of grant). The RSUs are not converted into shares of common stock until the director either resigns or is terminated from the Board of Directors.

The fair value of each RSU was estimated to be the closing price of the Company’s common stock on the date of the grant, which were $15.09, $27.51 and $23.41 for the grants on March 1, 2015, March 1, 2014 and January 2, 2013, respectively.

The Company’s Senior Management Compensation Program includes an equity component in order to encourage more ownership of common stock by the senior management. The Senior Management Compensation Program imposes stock ownership requirements upon the participants. Each participant is required to own at least 750 shares of common stock for each year that the participant participates in the Senior Management Compensation Program. Any participant that fails to meet the stock ownership requirements will be ineligible to receive any equity awards under the Company’s equity compensation plans, including the Plan, until the participant satisfies the ownership requirements. To assist participants in meeting the stock ownership requirements, on an annual basis, if a participant purchases 500 shares of common stock on the open market, the Company will award that participant 250 shares of common stock. During 2015, 2014 and 2013, the Company matched 9,000, 9,875 and 8,500 shares, respectively. Additionally, any participant who continues to comply with the stock ownership requirements as of the five-year, 10-year, 15-year, 20-year and 25-year anniversaries of the participant’s participation in the Senior Management Compensation Program will receive a restricted stock unit award with a dollar value of $25 thousand, $50 thousand, $75 thousand, $100 thousand and $100 thousand, respectively. Restricted stock unit awards will convert into the right to receive shares of common stock upon a participant’s retirement, or earlier upon the executive’s death or disability or upon a change in control of the Company.

Stock-based compensation expense recognized on RSUs is summarized in the following table:

	For the years ended December 31,
(in thousands)	2015		2014		2013
RSU expense before taxes	$	1,047	$	1,252	$	936
RSU expense after taxes	$	631	$	774	$	554

All pre-tax charges related to RSUs were included in the caption “Administrative and general” on the accompanying Consolidated Statements of Comprehensive Income.

The following table summarizes the activity related to RSUs for the twelve months ended December 31, 2015:

	Number of Shares			Weighted Average Estimated Fair Value
Outstanding at December 31, 2014		238,023		$	25.11
Granted		69,771			14.54
Converted into shares		(19,900	)		25.34
Forfeited		-			-
Outstanding at December 31, 2015		287,894		$	22.39
Vested at December 31, 2015		271,599		$	22.33

Of the RSUs granted in 2015, 2014 and 2013, 47,639, 21,506 and 28,341, respectively, were used to fund supplemental executive retirement plan contributions. There was no intrinsic value for the RSUs that were converted into shares in 2015 and 2014. There were no RSUs converted into shares during 2013.