The Franklin Electric Co., Inc. 2017 Stock Plan (the "2017 Stock Plan") is a stock-based compensation plan that provides for discretionary grants of stock options, stock awards, stock unit awards, and stock appreciation rights ("SARs") to key employees and non-employee directors. The number of shares that may be issued under the Plan is 1,400,000. Stock options and SARs reduce the number of available shares by one share for each share subject to the option or SAR, and stock awards and stock unit awards settled in shares reduce the number of available shares by 1.5 shares for every one share delivered.

The Company also maintains the Franklin Electric Co., Inc. 2012 Stock Plan (the "2012 Stock Plan"), which is a stock-based compensation plan that provides for discretionary grants of stock options, stock awards, and stock unit awards to key employees and non-employee directors. The 2012 Stock Plan authorized 2,400,000 shares for issuance as follows:

No additional options and awards are granted out of the 2012 Stock Plan. However, there are still unvested awards and unexercised options under this plan.

The Company also maintains the Amended and Restated Franklin Electric Co., Inc. Stock Plan (the "2009 Stock Plan") which, as amended in 2009, provided for discretionary grants of stock options and stock awards. The 2009 Stock Plan authorized 4,400,000 shares for issuance as follows:

All options in the 2009 Stock Plan have been awarded and no additional awards are granted out of the plan. However, there are still unvested awards and unexercised options under this plan.

The Company currently issues new shares from its common stock balance to satisfy option exercises and the settlement of stock awards and stock unit awards made under the outstanding stock plans.

The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model with a single approach and amortized using a straight-line attribution method over the option’s vesting period.

The assumptions used for the Black-Scholes model to determine the fair value of options granted during the nine months ended September 30, 2022 and September 30, 2021 are as follows:


	September 30, 2022		September 30, 2021
Risk-free interest rate	1.87	%	0.66	%
Dividend yield	0.93	%	0.96	%

Volatility factor	33.88	%	34.98	%

Expected term	5.5 years		5.5 years

A summary of the Company’s outstanding stock option activity and related information for the nine months ended September 30, 2022 is as follows:


(Shares in thousands)	September 30, 2022
Stock Options	Shares	Weighted-Average Exercise Price
Outstanding at beginning of period	1,043	$	49.21
Granted	110	83.90
Exercised	(82)	43.43
Forfeited	(20)	73.76
Expired	(3)	$	73.14
Outstanding at end of period	1,048	$	52.77
Expected to vest after applying forfeiture rate	1,046	$	52.73
Vested and exercisable at end of period	815	$	46.45

A summary of the weighted-average remaining contractual term and aggregate intrinsic value as of September 30, 2022 is as follows:


	Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value (000's)
Outstanding at end of period	5.52 years	$	30,556
Expected to vest after applying forfeiture rate	5.51 years	$	30,550
Vested and exercisable at end of period	4.63 years	$	28,747

The total intrinsic value of options exercised during the nine months ended September 30, 2022 and September 30, 2021 was $3.3 million and $15.1 million, respectively.

As of September 30, 2022, there was $1.1 million of total unrecognized compensation cost related to non-vested stock options granted under the stock plans. That cost is expected to be recognized over a weighted-average period of 1.63 years.

A summary of the Company’s restricted stock/stock unit award activity and related information for the nine months ended September 30, 2022 is as follows:


(Shares in thousands)	September 30, 2022
Restricted Stock/Stock Unit Awards	Shares	Weighted-Average Grant- Date Fair Value
Non-vested at beginning of period	348	$	58.20
Awarded	121	81.16
Vested	(180)	50.58
Forfeited	(26)	70.12
Non-vested at end of period	263	$	72.85

As of September 30, 2022, there was $10.7 million of total unrecognized compensation cost related to non-vested restricted stock/stock unit awards granted under the stock plans. That cost is expected to be recognized over a weighted-average period of 1.40 years.