On April 17, 2008, the Company adopted its 2008 Equity Incentive Plan that provides for the granting of stock-based arrangements for key employees and non-employee members of the Company’s Board of Directors. The Compensation Committee of the Company’s Board of Directors administers the plan, makes determinations with respect to participation, and authorizes stock-based awards under the plan. To date, the Committee has awarded stock options and restricted stock awards as detailed further below. The 2008 plan expired on December 31, 2018, and no new awards were granted under this plan in 2019 or 2020. As of December 31, 2020, all granted stock options under the 2008 plan were exercised.

On October 25, 2018, the Company adopted its 2018 Equity Incentive Plan, which was approved by the Company’s shareholders in April of 2019. The 2018 plan was adopted in anticipation of the expiration of the 2008 plan and provides for the granting of stock-based awards to key employees, directors, and consultants. Similar to the 2008 plan, the Compensation Committee of the Company’s Board of Directors administers the 2018 plan, makes determinations with respect to participation, and authorizes stock-based awards under the plan. The maximum number of shares of the

Company’s common stock available for issuance under the 2018 plan was 200,000 shares. The status of the Company's 2018 Equity Incentive Plan is presented below:


			2018 Equity Incentive Plan Number of Shares
Awards available for issuance- December 31, 2018			200,000
Awards granted			(5,975)
Awards available for issuance - December 31, 2019			194,025
Awards granted			(5,625)
Awards available for issuance - December 31, 2020			188,400

All disclosures for stock options and restricted stock shown below relate to outstanding awards under the 2008 and 2018 plans. Disclosures for stock options and restricted stock awards are shown separately due to their dissimilar characteristics.

In 2020, all outstanding options granted under the 2008 plan were exercised. The options granted under the 2008 plan were to purchase common stock at an exercise price not less than the fair market value of the common stock at the date of the grant. The granted options vested and became exercisable in twenty percent increments on the first through the fifth anniversaries of the date of the grant and would have expired and may not have been exercised later than ten years following the date of the grant. The options were set to expire on various dates through 2022.

The fair value of options granted was estimated as of the date granted using the Black Scholes model. No options were granted in 2019 or 2020.


	Stock Options
	Number of Shares	Exercise Price Range	Weighted Average Price
Outstanding - December 31, 2018	28,000	$12.32 - $17.33	$	14.85
Exercised(1)	(7,500)	$12.32	$	12.32
Outstanding - December 31, 2019	20,500	$14.31 - $17.33	$	15.78
Exercised(2)	(20,500)	$14.31 - $17.33	$	15.78
Outstanding - December 31, 2020	—		$	—

(1)A total of 300 shares of the Company’s common stock were surrendered in lieu of payment of a portion of the cash exercise price for options exercised during 2019, resulting in the net issuance upon exercise of an aggregate of 7,200 shares of the Company’s common stock.

(2)A total of 5,780 shares of the Company’s common stock were surrendered in lieu of payment of a portion of the cash exercise price for options exercised during 2020, resulting in the net issuance upon exercise of an aggregate of 14,720 shares of the Company’s common stock.

As of December 31, 2019, 20,500 of the outstanding options were fully vested and exercisable with an intrinsic value of approximately $826,000. The weighted average remaining term for vested options was 1.32 years. No shares vested during the year ended December 31, 2019.

The restricted stock awards issued under the 2008 and 2018 plans provide common stock to recipients at the grant date. The restrictions vest in twenty percent increments on the first through fifth anniversaries of the grant date. Compensation expense for these grants is recognized ratably over the vesting period of the awards based on the fair value of the stock at the grant date.

During 2020, the Committee granted 5,625 restricted stock awards with a weighted average fair value of $42.35. For the year ended December 31, 2020, the compensation expense for the vested restricted stock was $276,000. As of December 31, 2020, there was approximately $604,000 of total unrecognized compensation cost related to restricted stock awards. That cost is expected to be recognized over a weighted average period of 4.5 years.

During 2019, the Committee granted 5,975 restricted stock awards with a weighted average fair value of $48.15. For the year ended December 31, 2019, the compensation expense for the vested restricted stock was $227,000. As of December 31, 2019, there was approximately $641,000 of total unrecognized compensation cost related to restricted stock awards. That cost is expected to be recognized over a weighted average period of 4.5 years.


	Nonvested Restricted Stock
	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested - December 31, 2018	21,190	$	32.10
Granted	5,975	$	48.15
Vested	(6,560)	$	30.26
Nonvested - December 31, 2019	20,605	$	37.34
Granted	5,625	$	42.35
Vested	(8,575)	$	33.65
Nonvested - December 31, 2020	17,655	$	40.73

The Company has a Director Compensation Program. This program allows directors the option of receiving a portion of their payment for director fees, for attendance at board meetings, in Company stock. Under the program, board fees are earned and expensed in one year and the related stock is issued the following year.

The Director Compensation Program stock earned and the issuance of shares as board compensation for the years ended December 31, 2020 and 2019, are as follows:


	Years Ended December 31,
(dollars in thousands)	2020		2019
Share-based board compensation earned	$	62	$	87

Issuance of shares of common stock as board compensation:
Number of shares issued	1,591		2,368
Equity impact of shares issued	$	87	$	96