10. Stock Option Plan and Stock Based Compensation

The Company grants stock options and restricted stock to key executives and managerial employees and non-employee directors. At August 31, 2018, the Company had one stock option plan, the 2004 Long-Term Incentive Plan of Ennis, Inc., as amended and restated as of June 30, 2011, formerly the 1998 Option and Restricted Stock Plan amended and restated as of May 14, 2008 (the “Plan”). The Company has 534,478 shares of unissued common stock reserved under the Plan for issuance as of August 31, 2018. The exercise price of each stock option granted under the Plan equals a referenced price of the Company’s common stock as reported on the New York Stock Exchange on the date of grant, and an option’s maximum term is ten years. Stock options and restricted stock may be granted at different times during the year and vest ratably over various periods, from grant date up to five years. The Company uses treasury stock to satisfy option exercises and restricted stock awards.

The Company recognizes compensation expense for stock options and restricted stock grants on a straight-line basis over the requisite service period. For the three months ended August 31, 2018 and August 31, 2017, the Company included compensation expense related to share-based compensation of $0.4 million and $0.4 million, respectively, in selling, general, and administrative expenses. For the six months ended August 31, 2018 and August 31, 2017, the Company included compensation expense related to share-based compensation of $0.7 million and $0.7 million, respectively, in selling, general, and administrative expenses.

Stock Options

The Company had the following stock option activity for the six months ended August 31, 2018:

						Weighted
				Weighted		Average		Aggregate
	Number			Average		Remaining		Intrinsic
	of Shares			Exercise		Contractual		Value(a)
	(exact quantity)			Price		Life (in years)		(in thousands)
Outstanding at March 1, 2018		172,496		$	15.95		3.2	$	612
Granted		—			-
Terminated		—			-
Exercised		(110,906	)		15.99
Outstanding at August 31, 2018		61,590		$	15.88		2.3	$	364
Exercisable at August 31, 2018		61,590		$	15.88		2.3	$	364

(a)	Intrinsic value is measured as the excess of fair market value of the Company’s common stock as reported on the New York Stock Exchange over the applicable exercise price.

No stock options were granted during the six months ended August 31, 2018 and August 31, 2017.

A summary of the stock options exercised and tax benefits realized from stock based compensation is presented below (in thousands):

	Three months ended				Six months ended
	August 31,				August 31,
	2018		2017		2018		2017
Total cash received	$	69	$	—	$	69	$	—
Income tax benefits	$	—	$	—	$	—	$	—
Total grant-date fair value	$	345	$	—	$	345	$	—
Intrinsic value	$	534	$	—	$	534	$	—

A summary of the Company’s unvested stock options at August 31, 2018 and the changes during the six months ended August 31, 2018 are presented below:

				Weighted
				Average
	Number			Grant Date
	of Options			Fair Value
Unvested at March 1, 2018		1,616		$	2.24
New grants		—			—
Vested		(1,616	)		2.24
Forfeited		—			—
Unvested at August 31, 2018		—			—

Restricted Stock

The Company had the following restricted stock grant activity for the six months ended August 31, 2018:

				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
Outstanding at February 28, 2018		152,675		$	16.59
Granted		83,789			20.54
Terminated		—			—
Vested		(80,692	)		16.02
Outstanding at August 31, 2018		155,772		$	19.01

As of August 31, 2018, the total remaining unrecognized compensation cost related to unvested restricted stock granted under the Plan was approximately $2.5 million. The weighted average remaining requisite service period of the unvested restricted stock awards was 2.1 years.