Share-Based Awards

Employee Stock Option and Incentive Plans

In October 2005, our shareholders approved a stock option and incentive plan (the “2005 Plan”) under which 4,800,000 shares of common stock were reserved for the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, performance shares, performance units (including performance options) and other share-based awards. The 2005 Plan provides that our employees and directors may, at the discretion of the Board of Directors or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted under the 2005 Plan, the exercise price of each option is determined based on the date of grant and expire no later than 10 years from the date of grant. Awards granted pursuant to the 2005 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted. Upon a change of control of our Company, as such term is defined in the 2005 Plan, awards under the 2005 Plan will fully vest under certain circumstances. The 2005 Plan expired on May 25, 2015. As of June 30, 2016, there were 1,358,931 outstanding options and 25,046 outstanding shares of restricted stock, restricted stock units and performance based restricted stock under the 2005 Plan.

In August 2015, our shareholders approved a stock option and incentive plan (the “2015 Plan”) under which 11,500,000 shares of common stock were reserved for the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards, performance stock awards and other share-based awards. The 2015 Plan provides that our employees and directors may, at the discretion of the Board of Directors or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted under the 2015 Plan, the exercise price of each option is determined based on the date of grant and expire no later than 10 years from the date of grant. Awards granted pursuant to the 2015 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted. Upon a change of control of our Company, as such term is defined in the 2015 Plan, awards under the 2015 Plan will fully vest under certain circumstances. As of June 30, 2016, there were 1,856,500 outstanding options, 662,608 outstanding shares of restricted stock awards and 8,613,425 shares available for future grant under the 2015 Plan.

A summary of stock option transactions during the three months ended June 30, 2016 follows:



	Number of Shares		Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding, April 1, 2016	2,447,286		$	19.55	6.3	574
Granted	856,500		12.87		7.9
Forfeited/Canceled	(88,355	)	21.80		4.8
Outstanding, June 30, 2016	3,215,431		$	17.59	5.8	$	238
Vested and expected to vest, June 30, 2016	2,358,931		$	17.59	5.8	$	238
Exercisable, June 30, 2016	773,346		$	26.19	2.3	$	143

We utilize the Black-Scholes valuation model for estimating the fair value of share-based compensation with the following assumptions:



	Three Months Ended June 30,
	2016	2015
Expected term	6.0 years	3.8 years
Expected volatility	37.4%	38.3%
Expected dividends	—%	4.1%
Risk-free rate	1.5%	1.6%

The weighted-average grant date fair value of stock options granted during the three months ended June 30, 2016 and 2015 was $4.92 and $3.67 per share, respectively.

During the three months ended June 30, 2016, a total of 856,500 options to purchase shares of common stock were granted under the 2015 Plan at an exercise price equal to the market price of our common stock on the date of grant, as summarized below:



Option Grant Date	Number of Shares	Exercise Price		Vesting Terms ⁽¹⁾	Expiration
May 31, 2016	100,000	$	12.71	Five years	May 31, 2024
May 25, 2016	216,500	$	12.78	Four years	May 25, 2024
May 24, 2016	540,000	$	12.93	Four years	May 24, 2024
Total	856,500

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⁽¹⁾ Options vest in equal annual installments on each grant anniversary date commencing one year following the date of grant.

Non-vested stock option award activity during the three months ended June 30, 2016 is summarized as follows:



	Non-Vested Number of Shares		Weighted- Average Grant-Date Fair Value per Share
Outstanding, April 1, 2016	1,859,750		$	4.67
Granted	856,500		4.92
Vested	(226,845	)	5.96
Forfeited/Canceled	(47,320	)	4.53
Outstanding, June 30, 2016	2,442,085		$	4.64

As of June 30, 2016, $10,226 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted-average period of 4.0 years. This amount does not include the cost of new options that may be granted in future periods or any changes in our forfeiture percentage. The total fair value of options vested during the three months ended June 30, 2016 and 2015 was $1,353 and $1,657, respectively.

Employee Share Purchase Plan

On August 11, 2014, our shareholders approved an Employee Share Purchase Plan (the “Purchase Plan”) under which 4,000,000 shares of common stock were reserved for future grant. The Purchase Plan allows eligible employees to purchase shares through payroll deductions of up to 15% of total base salary at a price equal to 90% of the lower of the fair market values of the shares as of the beginning or the end of the corresponding offering period. Any shares purchased under the Purchase Plan are subject to a six-month holding period. Employees are limited to purchasing no more than 1,500 shares on any single purchase date and no more than $25,000 in total fair market value of shares during any one calendar year. As of June 30, 2016, we have issued 147,464 shares under the Purchase Plan and 3,852,536 shares are available for future issuance.

Share-based compensation expense recorded for the employee share purchase plan was $126 for the three months ended June 30, 2016 and $68 for the three months ended June 30, 2015.

Restricted Stock Awards

Restricted stock awards activity during the three months ended June 30, 2016 is summarized as follows:



	Number of Shares		Weighted- Average Grant-Date Fair Value per Share
Outstanding, April 1, 2016	191,247		$	14.44
Granted	496,974		12.78
Vested	(567	)	20.20
Outstanding, June 30, 2016	687,654		$	13.23

Share-based compensation expense related to restricted stock awards was $545 for the three months ended June 30, 2016 and $198 for the three months ended June 30, 2015.

The weighted-average grant date fair value for the restricted stock awards was estimated using the market price of the common stock on the date of grant. The fair value of the restricted stock awards is amortized on a straight-line basis over the vesting period.

As of June 30, 2016, $7,928 of total unrecognized compensation costs related to restricted stock awards is expected to be recognized over a weighted-average period of 2.6 years. This amount does not include the cost of new restricted stock awards that may be granted in future periods.