STOCK PLANS

As of December 31, 2015, 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. In May 2007, the Company approved the 2007 Stock Incentive Plan which authorized the issuance of 2,000,000 shares of common stock; as of December 31, 2015, 7,306 shares remained available for issuance under this plan. In May 2010, the Company approved the 2010 Stock Incentive Plan which authorized the issuance of 2,000,000 shares of common stock; as of December 31, 2015, 467,617 shares remained available for issuance under this plan. In May 2013, the Company approved the 2013 Stock Incentive Plan which authorized the issuance of 2,000,000 shares of common stock; as of December 31, 2015, 1,578,979 shares remained available for issuance under this plan. As of December 31, 2015, an aggregate of 2,053,902 total 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 Shares and Restricted Stock Units

During 2013, the Company granted 441,629 restricted shares to certain key employees and the Company's Board of Directors at the weighted-average fair value of $16.56 per restricted share 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 of restricted shares 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 share 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 share 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 unit. 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 unit. These awards vest based upon the performance of the Company's stock price relative to a peer group over the next three years.

During 2015, the Company granted 314,360 of restricted shares and restricted stock units to certain key employees and the Company's Board of Directors. 168,360 of these awards were granted at the weighted-average fair value of $21.59 per restricted share at the date of grant. The majority of these awards cliff vest on the third anniversary of the grant date. 73,000 of these awards were granted at the weighted-average fair value of $21.64 per restricted stock unit. These awards vest based upon the Company achieving certain cumulative operating performance target goals over the next three years. 73,000 of these awards were granted at the weighted-average fair value of $12.14 per restricted stock unit. These awards vest based upon the performance of the Company's stock price relative to a peer group over the next three years.

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



	Restricted Stock		Weighted-Average Fair Value
Outstanding at December 31, 2014	1,235,904		$	16.38
Granted	168,360		21.59
Forfeited	(86,250	)	16.23
Vested	(324,081	)	21.68
Outstanding at December 31, 2015	993,933		$	17.34

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, 2012	110,000		$	14.04	—		$	—	—		$	—
Granted	—		—		—		—		—		—
Forfeited	—		—		—		—		—		—
Vested	(15,000	)	14.04		—		—		—		—
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
Granted	—		—		73,000		21.64		73,000		12.14
Forfeited	—		—		(15,625	)	15.92		(15,625	)	8.93
Vested	(35,000	)	14.04		—		—		—		—
Outstanding at December 31, 2015	45,000		$	14.04	380,458		$	18.28	160,812		$	10.12

Stock Options

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, 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
Exercised	(377,671	)	$	14.98		$	2,496,218
Outstanding at December 31, 2015	270,000		$	15.93	1.44	$	1,203,600
Exercisable at December 31, 2015	262,000		$	15.93	1.30	$	1,181,040

The following table summarizes information regarding stock options outstanding and exercisable at December 31, 2015:



	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	140,000	1.09	$	10.61	140,000	$	10.61
$15.01 - $18.77	20,000	6.12	15.98		12,000	15.98
$18.78 - $23.47	110,000	1.03	22.69		110,000	22.69
$10.24 - $23.47	270,000	1.44	$	15.93	262,000	$	15.93

A summary of the status of the Company's non-vested options as of December 31, 2015 and 2014, and changes during the year ended December 31, 2015, is presented below.



	Number of Options		Weighted- Average Grant-Date Fair Value
Non-vested at December 31, 2014	12,000		$	6.26
Vested	(4,000	)	6.26
Non-vested at December 31, 2015	8,000		$	6.26

The total fair value of options vested during both 2015 and 2014 were less than $0.1 million, respectively. For 2013, the total fair value of options vested was $0.9 million.

Total Awards

Compensation costs related to stock-based compensation for the years ended December 31, 2015, 2014, and 2013 totaled $8.3 million pre-tax ($5.3 million after-tax), $7.8 million pre-tax ($4.8 million after-tax), and $10.5 million pre-tax ($6.3 million after-tax), respectively, and are included within selling, general, and administrative expenses.

At December 31, 2015, the total compensation cost related to non-vested awards not yet recognized equaled $11.8 million for restricted stock awards and restricted stock units, with minimal costs related to non-vested stock options. The weighted-average remaining period over which the cost is to be recognized is 1.5 years.