STOCK PLANS

As of December 31, 2014, the Company sponsors three stock incentive plans under which awards denominated or payable in shares, units or options to purchase shares of Knoll common stock may be granted to officers, certain other employees, directors and consultants of the Company. As of December 31, 2014, 2,248,456 shares remained available for issuance under these plans.

A Committee of the Board of Directors, currently consisting of the Compensation Committee of the Company's Board of Directors has sole discretion concerning administration of the plans, including selection of individuals to receive awards, types of awards, the terms and conditions of the awards and the time at which awards will be granted.

Restricted Stock and Restricted Stock Units

During 2012, the Company granted 425,030 restricted stock awards and restricted stock units to certain key employees and the Company's Board of Directors at the weighted-average fair value of $15.48 per restricted stock award at the date of grant. The majority of these awards cliff vest on the third anniversary of the grant date.

During 2013, the Company granted 441,629 restricted stock awards to certain key employees and the Company's Board of Directors at the weighted-average fair value of $16.56 per restricted stock award at the date of grant. The majority of these awards cliff vest on the third anniversary of the grant date.

During 2014, the Company granted 1,106,919 restricted stock awards and restricted stock units to certain key employees and the Company's Board of Directors. 462,773 of these awards were granted at the weighted-average fair value of $15.43 per restricted stock award at the date of grant. The majority of these awards cliff vest on the third anniversary of the grant date. 200,000 of these awards were granted at the weighted-average fair value of $18.72 per restricted stock award and cliff vest on the fourth anniversary of the grant date. 331,896 of these awards were granted at the weighted-average fair value of $17.34 per restricted stock award. These awards vest based upon the Company achieving certain cumulative operating performance target goals over the next three years. 112,250 of these awards were granted at the weighted-average fair value of $8.24 per restricted stock award. These awards vest based upon the performance of the Company's stock price relative to a peer group over the next three years.

18. STOCK PLANS (continued)

The weighted-average fair value of the market performance restricted stock units granted in 2014 was $8.24 based on the following assumptions used in the lattice valuation model:



Range of expected volatilities of the Company and peer group	41.8% - 54.7%
Expected dividend yield	3.2	%
Expected term (in years)	3
Risk-free interest rate	2.5	%

The following table summarizes the Company's restricted stock activity during the year:



	Restricted Stock		Weighted-Average Fair Value
Outstanding at December 31, 2013	1,230,488		$	18.32
Granted	662,773		16.42
Forfeited	(108,875	)	16.01
Vested	(548,482	)	20.84
Outstanding at December 31, 2014	1,235,904		$	16.38

The following table summarizes the Company's restricted stock units activity during the year:



	Restricted Stock Units		Weighted-Average Fair Value		Restricted Stock Units Performance Based		Weighted-Average Fair Value		Restricted Stock Units Market Based		Weighted-Average Fair Value
Outstanding at December 31, 2013	95,000		$	14.04	—		$	—	—		$	—
Granted	—		—		331,896		17.34		112,250		8.24
Forfeited	—		—		(8,813	)	15.19		(8,813	)	8.14
Vested	(15,000	)	14.04		—		—		—		—
Outstanding at December 31, 2014	80,000		$	14.04	323,083		$	17.36	103,437		$	8.18

18. STOCK PLANS (continued)

Stock Options

In 2012, the Company granted 20,000 stock options to certain key employees of the Company. These options vest ratably over a five-year period on the anniversary of the grant date. The contractual life of these options is 10 years. In addition, the options have accelerated vesting provisions upon a change of control of the Company. The grant-date fair value of these options granted was $6.26 based on the following assumptions used in the Black-Scholes option pricing model:



Expected volatility	51		%
Expected dividend yield	2.50		%
Expected term (in years)	6
Risk-free interest rate	1.36		%
Exercise price	$	15.98

The following table summarizes the Company's stock option activity for the preceding three years.



	Number of Options		Weighted-Average Exercise Price		Weighted- Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2011	1,540,193		$	13.83		$	3,631,381
Granted	20,000		15.98			—
Exercised	(93,839	)	11.09			426,278
Expired	(37,070	)	16.34			37,070
Forfeited	(65,000	)	16.76			76,425
Outstanding at December 31, 2012	1,364,284		$	13.84	3.53	$	3,686,098
Exercised	(330,895	)	11.98			1,739,700
Forfeited	(10,000	)	10.24			42,400
Outstanding at December 31, 2013	1,023,389		$	14.48	2.71	$	4,625,520
Exercised	(375,718	)	12.93			2,237,704
Outstanding at December 31, 2014	647,671		$	15.37	2.16	$	4,016,809
Exercisable at December 31, 2014	635,671		$	15.36	2.07	$	3,954,529

18. STOCK PLANS (continued)

The following table summarizes information regarding stock options outstanding and exercisable at December 31, 2014:



	Options Outstanding				Options Exercisable
Ranges of Exercise Prices	Number of Options	Weighted- Average Remaining Contractual Life (years)	Weighted- Average Exercise Price		Number of Options	Weighted- Average Exercise Price
$10.24 - $15.00	357,171	2.34	$	11.20	357,171	$	11.20
$15.01 - $18.77	135,500	1.75	18.00		123,500	18.20
$18.78 - $23.47	155,000	2.12	22.68		155,000	22.68
$10.24 - $23.47	647,671	2.16	$	15.37	635,671	$	15.36

A summary of the status of the Company's non-vested options as of December 31, 2014 and 2013, and changes during the year ended December 31, 2014, is presented below.



	Number of Options		Weighted- Average Grant-Date Fair Value
Non-vested at December 31, 2013	16,000		$	6.26
Vested	(4,000	)	6.26
Non-vested at December 31, 2014	12,000		$	6.26

The total fair value of options vested during 2014 was minimal. For the years 2013 and 2012 the total fair value of options vested was $0.9 million and $1.0 million, respectively.

Total Awards

Compensation costs related to stock-based compensation for the years ended December 31, 2014, 2013, and 2012 totaled $7.8 million pre-tax ($4.8 million after-tax), $10.5 million pre-tax ($6.3 million after-tax), and $10.4 million pre-tax ($6.6 million after-tax), respectively, and are included within selling, general, and administrative expenses.

At December 31, 2014, the total compensation cost related to non-vested awards not yet recognized equaled $16.3 million including $0.1 million for stock options and $16.2 million for restricted stock awards and restricted stock units, respectively. The weighted-average remaining period over which the cost is to be recognized is 1.8 years.