Restricted Unit Awards ("RUAs")

6 Months Ended

Jun. 30, 2018

19. Restricted Unit Awards (“RUAs”)

The Partnership’s 2015 Equity Incentive Plan (“Plan”), as approved by the Unitholders, permits the grant of Restricted Units and other awards to the employees of Burlington, the Partnership, or any affiliate of either, and members of Burlington’s Board of Managers for up to 3.0 million BUCs. RUAs are generally granted with vesting conditions ranging from three months to approximately three years. RUAs currently provide for the payment of quarterly distributions during the vesting period. The RUA’s provide for accelerated vesting if there is a change in control or death or disability of the Participant.

The fair value of each RUA is estimated on the grant date based on the Partnership’s exchange-listed closing price of the BUCs. The Partnership recognizes compensation expense for the RUAs on a straight-line basis over the requisite vesting period. The compensation expense for RUAs totaled approximately $544,000 and $439,000 for the three months ended June 30, 2018 and 2017, respectively. The compensation expense for RUAs totaled approximately $750,000 and $610,000 for the six months ended June 30, 2018 and 2017, respectively.

The following table represents nonvested RUAs at and for the six months ended June 30, 2018 and the year ended December 31, 2017:

	Restricted Units Awarded			Weighted-average Grant- date Fair Value
Nonvested at January 1, 2017		158,304		$	6.03
Granted		283,046			5.74
Vested		(199,281	)		5.85
Nonvested at December 31, 2017		242,069		$	5.83
Granted		309,212			6.31
Nonvested at June 30, 2018		551,281		$	6.10

There was approximately $2.0 million of total unrecognized compensation expense related to nonvested RUAs granted under the Plan at June 30, 2018. The remaining expense is expected to be recognized over a weighted-average period of 1.1 years. The total intrinsic value of nonvested RUAs was approximately $3.5 million at June 30, 2018.