Stock-Based Compensation

12 Months Ended

Dec. 31, 2015

10.Stock-Based Compensation

Description of plan

In November 2014, the Company adopted the 2014 LTIP under which nonstatutory options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, bonus stock, dividend equivalents, and other stock-based awards may be granted to employees, directors and consultants of the Company. The aggregate number of shares of common stock that the Company may issue under the 2014 LTIP may not exceed 20 million shares. On December 16, 2014, in connection with the closing of the Combination, subject to the approval of the Sabine shareholders, the board of directors of Sabine voted to amend the 2014 LTIP to increase the total number of Common Shares reserved for issuance in connection with awards under the 2014 LTIP from 20 million to 40 million, effective as of the date of such shareholder approval. As of December 31, 2015, the Company had 4.3 million shares available for issuance under the 2014 LTIP. During 2015, 2014 and 2013, the Company recognized approximately $1.3 million, $1.0 million and zero, respectively, in stock based compensation expense which is included in General and Administrative expense in the Consolidated Statement of Operations.

Restricted stock

The following table summarizes the restricted stock activity in the 2014 LTIP for the year ended December 31, 2015.


	Restricted Stock Awards
	Weighted
				Number of Shares
		Weighted Average		Remaining Available
	Number of	Grant Date Fair		for Future Issuance
	Shares	Value		under 2014 LTIP
Unvested at December 31, 2014	13,923,230	$	0.34		3,205,597
Awarded	719,132		0.24		(719,132)
Vested	(2,727,871)		0.34		—
Forfeited	(1,815,200)		0.34		1,815,200
Unvested at December 31, 2015	10,099,291		0.33		4,301,665

The grant date fair value of restricted stock is determined by averaging the high and low stock price of a share of Sabine common stock as published by the OTC Bulletin Board on the date of grant. Of the unvested restricted stock as of December 31, 2015, 8,779,037 shares vest as follows: (i) two-thirds will vest in one-fourth increments on each of the first four anniversaries of the date of grant and (ii) one-third will vest in full on the fourth anniversary of the date of grant; 720,254 shares vest ratably over three years; and 600,000 shares vest ratably over four years. Restricted stock may vest earlier upon a qualifying disability, death, certain involuntary terminations, or a change in control of the Company in accordance with the terms of the underlying agreement.