8.	*Stock Plans and Other Incentives*

The Company has adopted certain incentive plans for the purpose of attracting and retaining the Company’s directors, officers and employees by having the ability to issue options, restricted stock units (“RSUs”), or stock awards. Awards granted under the Company’s incentive plans expire ten years from the date of grant and vest over periods ranging generally from three to five years for employees.

Option Awards

The following table presents option activity and other plan data for the nine months ended September 30, 2017 and 2016:


	For the Nine Months Ended September 30,
	2017				2016
	Options		Weighted- Average Exercise Price		Options		Weighted- Average Exercise Price
Outstanding at beginning of period		530,000	$	9.64		547,500	$	9.61
Granted		—	$	—		—	$	—
Exercised		(285,000)	$	(10.30)		(17,500)	$	(8.74)
Forfeited/cancelled/expired		—	$	—		—	$	—

Outstanding at end of period		245,000	$	8.88		530,000	$	9.64

Options exercisable at end of period		237,000	$	8.56		518,000	$	9.44

RSU Awards

The following table presents the changes in RSUs outstanding for the nine months ended September 30, 2017 and 2016:


	For the Nine Months Ended September 30,
	2017		2016
Outstanding at beginning of period		281,320		254,041
Granted		136,727		123,023
Common stock delivered (A) (B)		(88,543)		(85,181)
Forfeited		(7,993)		(4,451)

Outstanding at end of period		321,511		287,432

Intrinsic value (C)	$	5,787,198	$	5,880,859



(A) In the 2017 period, all of the vested RSUs were issued as shares. (B) The 2016 period includes 32,760 shares which were used to settle minimum employee withholding tax obligations for 29 employees of approximately $701,000 in 2016. A net of 52,421 shares of common stock were delivered in 2016.

(C) For purposes of this calculation, the Company’s closing stock prices were $18.00 and $20.46 per share on September 30, 2017 and 2016, respectively.

In the nine months ended September 30, 2017, an aggregate of 131,630 RSUs were granted to employees, which RSUs vest one-third a year over three years and had a grant date fair value of $18.67 per RSU. In the nine months ended September 30, 2016, an aggregate of 118,724 RSUs were granted to employees, which RSUs vest one-third a year over three years and had a weighted average grant date fair value of $20.22 per RSU. In each case, the grant date fair value was determined based on the closing stock price of the Company’s common stock on the applicable date of grant and considers the impact of dividend payments. The awards granted to employees in 2017 and 2016 are treated as equity awards and the grant date fair value is charged to compensation expense at the corporate level on a straight-line basis over the vesting periods. Dividends are not paid or accrued on unvested employee RSUs.

During the nine months ended September 30, 2017 and 2016, an aggregate of 5,097 RSUs and 4,299 RSUs, respectively, were granted to non-employee directors (with an average grant date fair value of $20.29 and $24.05 per RSU, respectively) related to the equity component of their compensation. In each case, the grant date fair value was determined as of the last trading day of the quarter for which the RSUs were being received as compensation. The RSUs are immediately vested, but are not deliverable to the non-employee directors until six months after termination of their service as a director. Dividends are paid on RSUs granted to non-employee directors.

Option and RSU Expense Information

The Company recorded non-cash compensation expense of approximately $546,000 and $524,000, respectively, including $34,500 in each period related to non-employee director equity compensation, for the three months ended September 30, 2017 and 2016, respectively, related to all stock options and RSUs accounted for as equity awards, as a component of general and administrative expenses in the statements of operations. For the nine months ended September 30, 2017 and 2016, the Company recorded non-cash compensation expense of approximately $1,656,000 and $1,580,000, respectively, including $103,500 in each period related to non-employee director equity compensation.