Stock-Based Compensation

We have the following stock-based compensation plans:

2014 Equity Incentive Plan

In February 2014, our stockholders approved and adopted at the Annual Meeting of Stockholders the 2014 Equity Incentive Plan (the 2014 Plan) which replaced our 2006 Equity Compensation Plan (2006 Plan). Persons eligible to receive awards under the 2014 Plan include our officers and employees. The 2014 Plan authorizes stock options, stock appreciation rights, restricted stock, restricted stock units and performance-based awards, as well as certain other awards. Restricted stock grants vest equally over their respective vesting period on each anniversary of the grant date and compensation expense is recognized over their respective vesting periods based on the price per share on the grant date.

In accordance with the 2014 Plan, the compensation committee has authorized grants of restricted stock units (RSUs) to certain officers and key employees of the company. The fair value of the RSUs is based on the closing price of our common stock as reported on the NASDAQ Global Market (NASDAQ) on the grant dates. Typically, these grants vest over a three-year period from their date of issuance. Sixty percent of the grant is time-based and vests over a three-year period on each anniversary of the grant date, based on continued employment. The remaining forty percent of the grant is earned based on the three-year earnings performance of the Company following the grant date. At September 30, 2017, there were 177,737 RSUs outstanding. The RSUs do not have voting rights but do receive dividend equivalents upon vesting; additionally, the shares of common stock underlying the RSUs are not considered issued and outstanding until vested and common stock is issued.

Total RSU activity (number of shares) for the past fiscal year is summarized below:



	Number of Restricted Stock Units		Weighted Average Fair Value Per Share
Outstanding at September 30, 2016	159,988		$	43.12
Granted	62,100		39.57
Vested	(29,051	)	39.08
Forfeited/cancelled	(15,300	)	26.39
Outstanding at September 30, 2017	177,737		$	37.00

We have reserved 750,000 shares of common stock for issuance under the 2014 Plan. As of September 30, 2017, there were 664,911 shares of common stock left available.

2014 Non-Employee Director Equity Incentive Plan

In February 2014, our stockholders approved and adopted at the Annual Meeting of Stockholders the 2014 Non-Employee Director Equity Incentive Plan (the 2014 Director Plan). The total number of shares of common stock reserved under the plan is 150,000 shares. The plan is administered by the Compensation Committee. Eligibility to participate in the plan is limited to those individuals who are members of the Board of the Company and who are not employees of the Company or any affiliate of the Company.

Under the terms of the 2014 Director Plan, the maximum number of shares that may be granted during any calendar year to any individual is 12,000 shares. The total number of shares that may be issued for awards to any single participant during a calendar year for other stock-based awards (excluding stock options and SARs) is 4,000 shares. The Compensation Committee has determined that each non-employee director will receive 2,000 restricted shares of the Company’s common stock annually. Fifty percent of the restricted stock granted to each of our non-employee directors vests immediately, while the remaining fifty percent vests on the anniversary of the grant date. Compensation expense is recognized immediately for the first fifty percent of the restricted stock granted, while compensation expense for the remaining fifty percent will be recognized over the remaining vesting period based on the price per share on the grant date.

In February 2017, we issued 17,000 shares of restricted stock to our non-employee directors at a price of $34.24 per share under the 2014 Director Plan. In February 2016, we issued 16,000 shares of restricted stock to our non-employee directors at a price of $25.63 per share and in April 2016, we also issued 1,000 shares of restricted stock to a non-employee director at a price of $29.38 per share under the 2014 Director Plan. The total number of shares of common stock available for future awards under the 2014 Director plan was 84,600 shares as of September 30, 2017.

At September 30, 2017 and 2016, there were 16,000 shares and 26,800 shares of unvested restricted stock outstanding. Total compensation expense related to restricted stock grants under all plans was $0.7 million, $0.7 million and $1.3 million for the years ended September 30, 2017, 2016 and 2015, respectively. Total compensation expense related to RSU’s under all plans was $2.0 million, $4.2 million and $1.9 million for the years ended September 30, 2017, 2016 and 2015, respectively.

We record the amortization of non-vested restricted stock and restricted stock units as an increase to additional paid-in capital. As of September 30, 2017 and 2016, amounts not yet recognized related to non-vested stock totaled $1.6 million and $2.1 million, respectively. As of September 30, 2017, the total weighted average remaining contractual life of our restricted stock and RSU’s is six months and 1.74 years, respectively.