16.	Subsequent Events

In July 2015, GSE entered into a separation and release agreement with James A. Eberle, Chief Executive Officer. Effective July 31, 2015, Mr. Eberle resigned his position as Chief Executive Officer and as a director on GSE's board of directors. GSE will incur $380,000 in severance expense related to the termination of Mr. Eberle.

GSE appointed Kyle Loudermilk as Chief Executive Officer effective August 3, 2015. In connection with his appointment, GSE's Board of Directors granted 850,000 restricted stock units ("RSUs") to Mr. Loudermilk for a six year performance period ending on June 30, 2021. The RSUs granted to Mr. Loudermilk are classified as equity awards because the RSUs will be paid in GSE common stock upon vesting. The RSUs have four vesting tranches based on GSE's stock price. The 850,000 RSUs will vest as follows:

·	200,000 RSUs will vest if the Volume Weighted Average Price ("VWAP") of the Company's common stock as quoted by the NYSE MKT exceeds $2.50 for a 90 consecutive trading day period.

·	An additional 200,000 RSUs will vest if the VWAP of the Company's common stock as quoted by the NYSE MKT exceeds $3.25 for a 90 consecutive trading day period.

·	An additional 200,000 RSUs will vest if the VWAP of the Company's common stock as quoted by the NYSE MKT exceeds $4.25 for a 90 consecutive trading day period.

·	An additional 250,000 RSUs will vest if the VWAP of the Company's common stock as quoted by the NYSE MKT exceeds $6.00 for a 90 consecutive trading day period.

The RSU equity awards are measured at the grant date fair value and are not remeasured at the end of the reporting period. Total expense related to the RSUs is expected to be $631,000. The RSUs will be amortized over the life that each tranche is expected to vest, or as follows:

(in thousands)
Five months ended December 31, 2015	$	89
Year ended December 31, 2016		212
Year ended December 31, 2017		205
Year ended December 31, 2018		98
Year ended December 31, 2019		27
	$	631

On July 6, 2015, Hyperspring, LLC renewed its $1.0 million working capital line of credit with IberiaBank for a one year period. Under the executed promissory note, interest is payable monthly at the rate of 1.00 percentage points over the prime rate of interest as published in the money rate section of the Wall Street Journal resulting in an effective interest rate of 4.25%. The line is secured by all accounts of Hyperspring and guaranteed by GSE Systems, Inc. The line of credit expires on July 6, 2016.