The 2010 Omnibus Incentive Compensation Plan (“2010 Plan”) was approved by the Company’s stockholders at the January 2011 Annual Meeting of Stockholders. The 2010 Plan, which is administered by the Compensation Committee of the Board of Directors, provides for the following types of awards: incentive stock options, nonqualified options, stock appreciation rights, restricted shares, restricted stock units, performance compensation awards, cash incentive awards, director stock and other equity-based and equity-related awards. Awards are generally granted to certain members of management and employees, as well as directors. The Company also has an employee stock purchase plan (“ESPP”), adopted in 2011, that provides for the purchase of Company common stock at a discounted stock purchase price. Under the 2010 Plan, up to 2,000,000 common shares may be issued over a term of ten years. Under the ESPP, 150,000 shares of common stock may be purchased over a term of ten years.

Stock-based compensation expense recorded under the 2010 Plan totaled $0.5 million for each of the years ended September 30, 2018 and 2017, respectively.

At September 30, 2018, there were 415,710 remaining shares available to be issued under the 2010 Plan and 100,765 remaining shares available to be purchased under the ESPP.

Expenses relating to stock options that comply with certain U.S. income tax rules are neither deductible by the Company nor taxable to the employee. Further information regarding awards granted under the 2010 Plan and ESPP is provided below.

Stock Options

When options are granted, IEC estimates fair value using the Black-Scholes option pricing model and recognizes the computed value as compensation cost over the vesting period, which is typically four years. The contractual term of options granted under the 2010 Plan is generally seven years. The volatility rate is based on the historical volatility of IEC’s common stock.

Assumptions used in the Black-Scholes model and the estimated value of options granted during the years ended September 30, 2018 and 2017 follows:



	Years Ended
Valuation of Options	September 30, 2018			September 30, 2017

Assumptions for Black-Scholes:
Risk-free interest rate	2.84		%	1.50		%
Expected term in years	5.5			4.0
Volatility	33		%	39		%
Expected annual dividends	none			none

Value of options granted:
Number of options granted	120,000			57,500
Weighted average fair value per share	$	1.84		$	1.19
Fair value of options granted (000s)	$	221		$	68

A summary of stock option activity, together with other related data, follows:



	Years Ended
	September 30, 2018				September 30, 2017
Stock Options	Number of Options		Wgtd. Avg. Exercise Price		Number of Options		Wgtd. Avg. Exercise Price

Outstanding, beginning of period	743,045		$	4.27	759,795		$	4.43
Granted	120,000		5.19		57,500		3.64
Exercised	(1,400	)	4.08		—		—
Forfeited	(114,000	)	4.78		(44,500	)	5.67
Expired	(10,500	)	5.24		(29,750	)	5.04
Outstanding, end of period	737,145		$	4.33	743,045		$	4.27

For options expected to vest
Number expected to vest	724,398		$	4.32	727,403		$	4.29
Weighted average remaining life, in years	4.0				4.6
Intrinsic value (000s)			$	733			$	545

For exercisable options
Number exercisable	426,358		$	4.24	332,472		$	4.40
Weighted average remaining life, in years	3.3				4.1
Intrinsic value (000s)			$	467			$	229

For non-exercisable options
Expense not yet recognized (000s)			$	343			$	416
Weighted average years to be recognized	2.8				1.8

For options exercised
Intrinsic value (000s)			$	2			$	—

Restricted (Non-vested) Stock

Certain holders of IEC restricted stock have voting and dividend rights as of the date of grant, but until vested the shares may be forfeited and cannot be sold or otherwise transferred. At the end of the vesting period, which is typically four or five years (three years in the case of directors), holders have all the rights and privileges of any other common stockholder. The fair value of a share of restricted stock is its market value on the date of grant and that value is recognized as stock-based compensation expense over the vesting period.

A summary of restricted stock activity, together with related data, follows:



	Years Ended
	September 30, 2018				September 30, 2017
Restricted (Non-vested) Stock	Number of Non-vested Shares		Wgtd. Avg. Grant Date Fair Value		Number of Non-vested Shares		Wgtd. Avg. Grant Date Fair Value

Outstanding, beginning of period	109,695		$	4.01	115,950		$	4.16
Granted	44,878		4.29		39,576		3.79
Vested	(40,107	)	4.11		(31,559	)	4.25
Shares withheld for payment of taxes upon vesting of restricted stock	(1,743	)	3.70		(1,825	)	4.27
Forfeited	(9,490	)	4.20		(12,447	)	4.03
Outstanding, end of period	103,233		$	4.08	109,695		$	4.01

For non-vested shares
Expense not yet recognized (000s)			$	315			$	328
Weighted average remaining years for vesting			1.7				1.7

For shares vested
Aggregate fair value on vesting dates (000s)			$	187			$	123

Stock Issued to Board Members

In addition to annual grants of restricted stock, included in the table above, board members may elect to have their meeting fees paid in the form of shares of the Company’s common stock. The Company has not paid any meeting fees in stock since May 21, 2013.

Restricted Stock Units

Holders of IEC restricted stock units do not have voting and dividend rights as of the date of grant, and, until vested, the units may be forfeited and cannot be sold or otherwise transferred. At the end of the vesting period, which is typically three years, holders will receive shares of the Company’s common stock and have all the rights and privileges of any other common stockholder of the Company. The fair value of a restricted stock unit is the market value of the underlying shares of the Company’s stock on the date of grant and that value is recognized as stock compensation expense over the vesting period.

A summary of restricted stock unit activity, together with related data, follows:



	Years Ended
	September 30, 2018				September 30, 2017
Restricted Stock Units	Number of Non-vested Shares		Wgtd. Avg. Grant Date Fair Value		Number of Non-vested Shares	Wgtd. Avg. Grant Date Fair Value

Outstanding, beginning of period	267,999		$	4.03	112,809	$	4.64
Granted	102,864		4.28		155,190	3.58
Vested	—		—		—	—
Forfeited	(200,371	)	4.22		—	—
Outstanding, end of period	170,492		$	3.96	267,999	$	4.03

For non-vested shares
Expense not yet recognized (000s)			$	352		$	329
Weighted average remaining years for vesting			2.3			2.0