In April 2022, Excelerate adopted the Excelerate Long-Term Incentive Plan (the “LTI Plan”). The LTI Plan was adopted to promote and closely align the interests of Excelerate's employees, officers, non-employee directors and other service providers and its stockholders by providing stock-based compensation and other performance-based compensation. The LTI Plan allows for the grant of up to 10.8 million shares, stock options, stock appreciation rights, alone or in conjunction with other awards; restricted stock and restricted stock units; incentive bonuses, which may be paid in cash, stock or a combination thereof; and other stock-based awards. The share pool will be increased on January 1st of each calendar year beginning in 2023 by a number of shares equal to 4% of the outstanding shares of Class A Common Stock on the preceding December 31st. The LTI Plan is administered by the Compensation Committee or such other committee designated by the board of directors of Excelerate to administer the LTI Plan.

The Company’s stock option and restricted stock unit awards both qualify as equity awards and are amortized into “Selling, general and administrative expense” and “Cost of revenue and vessel operating expenses” on the Consolidated Statements of Income on a straight-line basis. Stock options were granted to certain employees of Excelerate and vest over five years. The Company also issued restricted stock units to directors that vest ratably over either one or three years.

For the three and six months ended June 30, 2022, the Company recognized $0.3 million in long-term incentive compensation expense for both its stock options and restricted stock unit awards.

The following table summarizes stock option activity for the six months ended June 30, 2022 and provides information for outstanding and exercisable options as of June 30, 2022:


	Number of Options		Weighted Average Exercise Price
			(per share)
Outstanding at January 1, 2022		—	$	—
Granted		338,935		24.00
Exercised		—		—
Forfeited or expired		—		—
Outstanding at June 30, 2022		338,935	$	24.00
Exercisable at June 30, 2022		—	$	—

As of June 30, 2022 the Company had $4.4 million in unrecognized compensation costs related to its stock options that it expects to recognize over a weighted average period of 4.8 years.

The following table summarizes restricted stock unit activity for the six months ended June 30, 2022 and provides information for unvested shares as of June 30, 2022:


	Number of Shares		Weighted Average Fair Value
			(per share)
Unvested at January 1, 2022		—	$	—
Granted		20,832		24.00
Exercised		—		—
Forfeited or expired		—		—
Unvested at June 30, 2022		20,832	$	24.00

As of June 30, 2022 the Company had $0.4 million in unrecognized compensation costs related to its restricted stock unit awards that it expects to recognize over a weighted average period of 1.9 years.