NOTE L — STOCK-BASED COMPENSATION

On April 15, 2016, our Board of Directors approved the Hanger, Inc. 2016 Omnibus Incentive Plan (the “2016 Plan”). The 2016 Plan authorizes the issuance of (a) up to 2.3 million shares of Common Stock, plus (b) 0.4 million shares available for issuance under the 2010 Plan that had not been subject to outstanding awards as of the effective date of the 2016 Plan and (c) any shares that would have become available again for new grants under the terms of the 2010 Omnibus Plan (“2010 Plan”) if such plan were still in effect.

Upon approval of the 2016 Plan, our 2010 Plan was no longer available for future awards.

As of December 31, 2016, approximately 2.1 million shares were available for future issuance. The available shares consisted of (a) 2.3 million shares of common stock authorized for issuance under the 2016 Plan plus (b) 0.4 million shares rolled forward from the 2010 Plan plus (c) 0.3 million shares forfeited and added back to the pool less (d) 0.9 million shares issued for awards. In 2016, shares issued under equity plans are issued from authorized and unissued shares. Total unrecognized stock-based compensation cost related to unvested restricted stock unit awards is approximately $7.6 million as of December 31, 2016, and is expected to be recognized as compensation expense over approximately 2.3 years.

On May 13, 2010, our shareholders approved the 2010 Plan and prohibited future awards under the Amended and Restated 2002 Stock Incentive and Bonus Plan (the “2002 Plan”) and 2003 Non-Employee Directors’ Stock Incentive Plan (the “2003 Plan”).

For the years ended December 31, 2016, 2015 and 2014, we recognized a total of approximately $9.8 million, $11.1 million and $9.8 million, respectively, of stock-based compensation expense for the 2002, 2003, 2010 and 2016 plans. Of these amounts, approximately $0.2 million, for the year ended December 31, 2014 is associated with the Dosteon business and is included within “Loss from discontinued operations, net of income taxes.” Stock compensation expense, net of estimate forfeiture rate, relates to restricted stock units and performance-based restricted stock units.

Restricted Stock Units

The summary of restricted stock units, performance-based stock units, and weighted average grant date fair values are as follows:

	Employee Service-Based Awards				Employee Performance- Based Awards				Director Awards
	Units		Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value

Nonvested at December 31, 2014	670,735		$	28.99	75,661		$	24.70	72,832		$	29.46

Granted	474,108		24.48		120,178		25.95		92,155		14.46
Vested	(281,587	)	27.46		(49,775	)	24.37		(56,797	)	26.17
Forfeited	(52,416	)	28.73		(613	)	29.66		(14,021	)	19.48


Nonvested at December 31, 2015	810,840		26.90		145,451		25.83		94,169		18.25

Granted	631,011		6.90		192,600		6.90		71,000		6.53
Vested	(279,421	)	26.64		(19,722	)	23.99		(93,704	)	18.16
Forfeited	(95,832	)	20.69		(192,600	)	6.90		—		—


Nonvested at December 31, 2016	1,066,598		$	16.30	125,729		$	26.11	71,465		$	6.72

During the years ended December 31, 2016, 2015 and 2014, approximately 0.4 million, 0.4 million, and 0.4 million of restricted common stock units with an intrinsic value of $2.1 million, $9.0 million and $12.8 million, respectively, became fully vested. As of December 31, 2016, total unrecognized compensation expense related to unvested restricted stock units and unvested performance based restricted stock units for which we have concluded the performance condition was probable of achievement was approximately $11.2 million and the related weighted-average period over which it is expected to be recognized is approximately 2.3 years. The aggregate granted units have vesting dates through March 2017. The 2016, 2015 and 2014 aggregate grants had total estimated grant date fair values of $6.2 million, $16.1 million and $12.2 million, respectively.

Options

The summary of option activity and weighted average exercise prices are as follows:

(dollars in thousands)	Director Awards
Weighted Average Exercise Price	Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Term (Years)

Outstanding at December 31, 2014	7,947		$	5.09	$	—	—
Exercised	(7,947	)	5.09		—		—

Outstanding at December 31, 2015	—		$	—	$	—	—

The intrinsic value for options exercised for year ended December 31, 2014 was approximately $0.1 million. No options were exercisable under our stock-based compensation plans at December 31, 2016 and 2015. At December 31, 2014, 7,947 shares were exercisable with a weighted average exercise price of $5.09, average remaining contractual terms of 0.4 years and aggregate intrinsic values of approximately $0.1 million. Cash received related to the exercise of options during the years ended December 31, 2014 amounted to $0.1 million. As of December 31, 2016, 2015 and 2014, there was no unrecognized compensation cost related to stock option awards.

There were no options outstanding as of December 31, 2016 and 2015.