We may grant incentive stock options, non-qualified stock options, SSARs, restricted shares, and performance shares under our shareholder-approved 2020 Equity Incentive Plan ("2020 Plan") for up to 2.25 million common shares, plus 868,864 common shares, the number of shares that were remaining for grant under the 2016 Stock Incentive Plan ("2016 Plan") as of the effective date of the 2020 Plan, plus the number of shares remaining for grant under the 2016 Plan that are forfeited, settled in cash, canceled or expired. The aggregate number of shares that may be granted under the 2020 Plan is 3,118,864.

We may distribute authorized but unissued shares or treasury shares to satisfy share option and SSAR exercises or restricted share and performance share grants.

The fair value of restricted share and performance share grants is based on the closing price of our common shares on the grant date. For stock option and SSAR grants subject to a service condition, we estimate the fair value on the grant date using the Black-Scholes-Merton option pricing model with inputs including the closing market price at grant date, exercise price and

assumptions regarding the risk-free interest rate, expected volatility of our common shares based on historical volatility, and expected term as estimated using the simplified method. We record compensation expense for restricted shares and SSAR grants subject to a service condition utilizing the graded vesting method. For SSAR grants subject to a market condition, we estimate the fair value on the grant date through a lattice option pricing model that utilizes a Monte Carlo analysis with inputs including the closing market price at grant date, exercise price, share price threshold, remaining contractual term and assumptions regarding the risk-free interest rate, suboptimal exercise factor, and expected volatility of our common shares based on historical volatility. We record compensation expense for SSAR grants subject to a market condition over the derived service period, which is an output of the lattice option pricing model.

The grant date is defined as the date all necessary approvals are obtained. All grants during the nine months ended December 31, 2020 were made under the 2020 Plan, which was approved by our shareholders on November 19, 2020. The Compensation Committee of our Board of Directors approved substantially all grants under the 2020 Plan for the nine months ended December 31, 2020 on June 2, 2020. The closing market price of our common stock was $39.65 and $20.02 on November 19, 2020 and June 2, 2020, respectively.

The following table summarizes the share-based compensation expense for SSARs, restricted and performance grants included in the condensed consolidated statements of operations:

	Three Months Ended December 31,				Nine Months Ended December 31,
(In thousands)	2020		2019		2020		2019
Product development	$	3,362	$	639	$	3,773	$	1,579
Sales and marketing		666		104		735		217
General and administrative		2,602		586		4,804		1,360
Total share-based compensation expense	$	6,630	$	1,329	$	9,312	$	3,156

SSARs are rights granted to an employee to receive value equal to the difference between the price of our common shares on the date of exercise and the exercise price. The value is settled in common shares of Agilysys, Inc.

The following table summarizes the activity during the nine months ended December 31, 2020 for SSARs awarded under the 2020 and 2016 Plans:

	Number of Rights			Weighted-Average Exercise Price		Remaining Contractual Term		Aggregate Intrinsic Value
				(per right)		(in years)
Outstanding at April 1, 2020		1,644,888		$	21.07
Granted		2,234,858			20.02
Exercised		(80,255	)		11.93
Forfeited		(68,201	)		19.79
Expired		(2,118	)		14.22
Outstanding at December 31, 2020		3,729,172		$	20.66		5.5	$	66,069
Exercisable at December 31, 2020		995,713		$	14.73		3.5	$	23,544
Vested and expected to vest at December 31, 2020		3,729,172		$	20.66		5.5	$	66,069

As of December 31, 2020, total unrecognized share-based compensation expense related to unvested service condition SSARs was $21.1 million, which is expected to be recognized over a weighted-average vesting period of 2.2 years.

As of December 31, 2020, total unrecognized share-based compensation expense related to unvested market condition SSARs was $21.9 million, which is expected to be recognized over a weighted-average vesting period of 1.0 years. If the market condition for any SSARs is met prior to the end of their expected vesting period, all remaining unrecognized compensation expense for those SSARs will be recognized at that time.

We granted shares to certain of our Directors, executives and key employees, the vesting of which is service-based. The following table summarizes the activity during the nine months ended December 31, 2020 for restricted shares awarded under the 2020 and 2016 Plans:

	Number of Shares			Weighted-Average Grant-Date Fair Value
				(per share)
Outstanding at April 1, 2020		178,462		$	19.89
Granted		56,527			39.63
Forfeited		(30,980	)		20.65
Outstanding at December 31, 2020		204,009		$	25.24

The weighted-average grant date fair value of the restricted shares is determined based upon the closing price of our common shares on the grant date. As of December 31, 2020, total unrecognized share-based compensation expense related to unvested restricted stock was $2.4 million, which is expected to be recognized over a weighted-average vesting period of 1.3 years.

We awarded certain restricted shares to our Chief Executive Officer, the vesting of which is performance based. The number of shares that vested were based on relative attainment of a performance metric and any unvested shares were forfeited upon settlement of the bonus.

The following table summarizes the activity during the nine months ended December 31, 2020 for the performance shares awarded under the 2016 Plan: