STOCK PLANS

As of December 31, 2018, 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. The following table summarizes the Company approved plans, the number of shares authorized to be issued and the number of shares available to be issued as of December 31, 2018:



	Authorized for issue	Available for issue
2010 Stock Incentive Plan	2,000,000	56,959
2013 Stock Incentive Plan	2,000,000	513,399
2018 Stock Incentive Plan	2,000,000	2,000,000
Total available for issuance		2,570,358

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

The Company awards restricted shares and restricted stock units to employees, as well as non-employee directors, under various plans. The restrictions on these awards generally lapse between three and four years from the date of the awards. The Company records expense for restricted shares and restricted stock units awards in an amount equal to the fair market value of the underlying awards on the grant date of the award, over the period the awards lapse. The following table shows the details for each of the 2016, 2017 and 2018 restricted shares and restricted stock units grants:



Grant Date	Number of restricted shares and restricted stock units	Weighted-Average Grant Date Fair Value		Vesting	Vesting Period
2016 grants	283,000	$	18.69	Cliff - Subject to service conditions	Three Years
	30,632	$	18.28	Graded - Subject to service conditions	Three Years
	163,509	$	18.81	Cliff - Subject to service and performance conditions	Three Years
	109,000	$	12.03	Cliff - Subject to service and market conditions	Three Years
Total 2016 grants	586,141

2017 grants	277,250	$	22.80	Cliff - Subject to service conditions	Three - Four Years
	24,488	$	22.87	Graded - Subject to service conditions	Three Years
	147,938	$	22.77	Cliff - Subject to service and performance conditions	Three Years
	98,625	$	10.63	Cliff - Subject to service and market conditions	Three Years
Total 2017 grants	548,301

2018 grants	223,988	$	21.21	Cliff - Subject to service conditions	Three Years
	37,788	$	19.89	Graded - Subject to service conditions	Two Years
	150,009	$	21.20	Cliff - Subject to service and performance conditions	Three Years
	100,000	$	13.87	Cliff - Subject to service and market conditions	Three Years
Total 2018 grants	511,785

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



	Restricted Shares		Weighted-Average Grant Date Fair Value
Outstanding at December 31, 2017	841,610		$	20.41
Granted	261,776		21.02
Forfeited	(20,940	)	22.01
Vested	(357,194	)	19.62
Outstanding at December 31, 2018	725,252		$	21.03

The fair value of restricted shares that vested during 2018, 2017 and 2016 was $7.4 million , $9.5 million, $4.9 million, respectively.

The Company estimated the fair value of the restricted stock units with market-based vesting conditions using the monte-carlo valuation model. In determining these values, the following weighted-average assumptions were used for the stock units granted during the fiscal years indicated:



	2018			2017			2016
Weighted-average fair value on grant date	$	13.87		$	10.63		$	12.03
Assumptions used to compute fair value :
Volatility	27.3		%	27.2		%	27.3		%
Risk free interest rate	2.3		%	1.6		%	0.7		%
Expected term	3 years			3 years			2.6 years
Expected dividend yield	2.8		%	2.6		%	2.3		%

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



	Restricted Stock Units - Service Based		Weighted-Average Grant Date Fair Value		Restricted Stock Units - Performance Based		Weighted-Average Grant Date Fair Value		Restricted Stock Units - Market Based		Weighted-Average Grant Date Fair Value
Outstanding at December 31, 2017	15,000		$	14.04	327,486		$	20.44	236,708		$	12.46
Granted	—		—		150,009		21.20		100,000		13.87
Forfeited	—		—		(16,270	)	20.05		(10,845	)	11.84
Vested	(15,000	)	14.04		(55,921	)	21.21		(503	)	11.80
Expired	—		—		—		—		(55,163	)	14.88
Outstanding at December 31, 2018	—		$	—	405,304		$	20.92	270,197		$	12.46

Fair value of restricted stock units that vested during 2018, 2017 and 2016 was $1.4 million, $9.9 million, and $0.0 million, respectively.

Stock Options

A summary of the status of the Company's options as of December 31, 2018 and 2017, and changes during the year ended December 31, 2018, is presented below.



	Number of Options	Weighted- Average Grant-Date (Per Share)		Weighted- Average Exercise Price (per Share)		Weighted- Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2017	—	$	—	$	—
Granted	20,000	4.01		22.59
Outstanding at December 31, 2018	20,000	$	4.01	$	22.59	4.6	$	—
Exercisable at December 31, 2018	—	$	—	$	—	0	$	—

The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on the KNL market price, less the strike price, as of the end of the period presented, which would have been received by the option holders had all option holders exercised in-the-money options as of that date. Total intrinsic value of options exercised in 2018, 2017 and 2016 was $0.0 million, $0.2 million and $1.6 million, respectively. No options were exercised during fiscal 2018. Options granted in 2018, 2017 and 2016 had a weighted-average grant-date fair value of $0.1 million, $0.0 million and $0.0 million, respectively. There were no options which vested in 2018 and the total fair value of options vested during 2017 and 2016 were less than $0.1 million, respectively.

Total Awards

Compensation costs related to stock-based compensation for the years ended December 31, 2018, 2017, and 2016 totaled $9.2 million pre-tax ($6.9 million after-tax), $9.6 million pre-tax ($6.1 million after-tax) and $10.5 million pre-tax ($6.8 million after-tax) respectively, and are included within selling, general, and administrative expenses.

At December 31, 2018, the total compensation cost related to non-vested awards not yet recognized equaled $11.8 million for restricted share awards and restricted stock units, with less than $0.1 million costs related to non-vested stock options. The weighted-average remaining period over which the cost is to be recognized is 1.5 years.