STOCK-BASED COMPENSATION

At September 30, 2015, there was approximately $4,190 of pre-tax stock-based compensation expense, net of estimated forfeitures, related to unvested awards not yet recognized.

Employee and Director Stock Options

The Company recognized stock-based compensation expense related to employee stock option awards of $588 and $1,483 for the three and nine months ended September 30, 2015, respectively. Stock-based compensation expense related to employee stock option awards was $533 and $1,912 for the three and nine months ended September 30, 2014, respectively. The compensation expense related to unvested stock options is expected to be recognized over a remaining weighted average period of 2.18 years.

A summary of option activity for the nine months ended September 30, 2015 is as follows:



	Number of Shares		Weighted Average Exercise Price
Outstanding at December 31, 2014	1,110,721		$	28.22
Granted	31,208		3.72
Exercised	—		—
Forfeited	(1,677	)	7.88
Expired	(232,936	)	31.41
Outstanding at September 30, 2015	907,316		$	26.59

Options exercisable at September 30, 2015	594,188		$	36.29

Weighted average grant date fair value of options granted during the nine months ended September 30, 2015			$	2.68

Restricted Stock Units

On January 2, 2014, the Company awarded 100,000 restricted stock units ("RSUs") to its Chief Executive Officer. These RSUs contain both market and performance conditions which are based on the achievement of certain stock price and revenue targets, respectively. The RSUs vest in various percentages over three years (subject to certain accelerated and continued vesting events) once the agreed-upon stock price and/or revenue based targets are achieved. To the extent that the market or performance conditions are not met by January 2, 2016, the RSUs will be forfeited. The Company estimated the fair value and derived service period of the awards using a Monte Carlo valuation model. The Company is recognizing compensation expense for this award over its requisite service period, which is equal to the cumulative time expected to achieve one of the triggering conditions followed by a three-year post-triggering event vesting period.

The Company's 2014 Stock Option and Incentive Plan (the "2014 Plan") authorizes the granting of incentive and nonqualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards, performance share awards and dividend equivalent rights to the Company's officers, directors and consultants. During 2015, the Company initiated use of RSUs as a broad-based form of compensation incentive for its officers, directors and employees.

On April 1, 2015, the Company awarded 203,967 RSUs under the 2014 Plan to members of senior management pursuant to elections previously made by the senior managers to convert a portion of their 2014 performance bonuses from cash to equity. These RSUs vest one year from the date of grant, subject to service conditions. During the nine months ended September 30, 2015, the Company also awarded a total of 906,806 additional long-term incentive RSUs to senior managers and employees. These RSUs vest in four equal annual installments beginning one year after the date of grant, subject to service conditions. On September 10, 2015, the Company awarded 81,250 RSUs to its non-employee directors. These RSUs will vest on May 28, 2016.

The Company records stock compensation expense for RSUs on a straight line basis over their vesting period based on each RSU's award date market value. The Company will pay required minimum income tax withholding associated with RSUs for its employees as they vest and will withhold from the common stock issuable on vesting of the RSUs a number of shares with an aggregate fair market value equal to the minimum tax withholding amount unless the employee makes other arrangements for payment of the tax withholding.

A summary of RSU activity for the nine months ended September 30, 2015 is as follows:



	Number of RSUs			Weighted Average Remaining Contractual Life (years)
Outstanding at December 31, 2014	100,000
Awarded	1,192,023
Released	—
Forfeited	(1,000		)
Outstanding at September 30, 2015	1,291,023			1.54

Vested and expected to vest as of September 30, 2015	1,122,027			1.42

Weighted average remaining recognition period	2.60
Weighted average grant date fair value of RSUs granted during the nine months ended September 30, 2015	$	3.61