Note 10 – Stock-Based Compensation Plans

On May 18, 2010, the Company authorized and granted 182,936 shares of Common Stock for issuance pursuant to individual restricted stock unit agreements with employees of the Company. The awards granted on May 18, 2010 vested in installments of 33%, 33%, and 34% over a three year period on the anniversary date of the grant, subject to continued service to the Company. On August 3, 2010, the Company authorized and granted 55,790 shares of Common Stock for issuance pursuant to individual restricted stock unit agreements with directors of the Company. The awards granted on August 3, 2010 vested on March 1, 2011 and March 1, 2014, subject to continued service to the Company as of those dates.

In August 2010, we adopted the Accuride Corporation 2010 Incentive Award Plan (the "2010 Incentive Plan") and reserved 1,260,000 shares of Common Stock for issuance under the plan, plus such additional shares of Common Stock that the plan administrator deemed necessary to prevent unnecessary dilution upon issuance of shares pursuant to terms of our convertible notes due 2020, up to a maximum number shares of Common Stock such that the total number of shares available for issuance under the 2010 Incentive Plan would not exceed ten percent (10%) of the fully diluted shares outstanding from time to time calculated by adding the total shares issued and outstanding at any given time plus the number of shares issued upon conversion of any of the convertible notes at the time of such conversion. During 2010, we effectively converted all outstanding convertible notes to equity, and we subsequently amended the 2010 Incentive Plan to reserve 3,500,000 shares of Common Stock, for issuance under the 2010 Incentive Plan.

On March 13, 2014, our Board of Directors adopted, subject to shareholder approval, the Second Amended and Restated 2010 Incentive Award Plan, which increased the number of shares of our common stock available for grants under the plan by 1,700,000 shares, extended the term of the plan until 2024, and made certain other adjustments. Our shareholders approved the Second Amended and Restated 2010 Incentive Award Plan at our Annual Meeting in April 2014, which resulted in a total of 5,200,000 shares of Common Stock being reserved for issuance under the plan.

Service Options – In August, 2012, we granted stock options to certain officers and other key employees as consideration for service. Options granted generally vest ratably over a three year period and have 10-year contractual terms. The table below summarizes service option activity during the year ended December 31, 2014:

	Number of Options			Weighted Average Grant-date Fair Value		Weighted Average Remaining Vesting Period	Aggregate Intrinsic Value
Service options outstanding at December 31, 2013		165,197		$	—
Granted		—			—
Exercised		—			—
Forfeited		(21,102	)	$	8.00
Service options outstanding at December 31, 2014		144,095		$	8.00	0.4 years		—
Service options vested or expected to vest		144,095		$	8.00	0.4 years		—
Service options exercisable at December 31, 2014		—		$	—	—		—

There is no intrinsic value on service options outstanding due to the closing price on December 31, 2014 being lower than the strike price of the options.

Restricted Stock Units ("RSUs") – We grant RSUs to certain officers and other key employees as consideration for service. The table below summarizes RSU activity during the year ended December 31, 2014:

	Number of RSUs			Weighted Average Grant-date Fair Value		Weighted Average Remaining Vesting Period
RSUs unvested at December 31, 2013		887,958		$	7.28
Granted		1,030,412			4.41
Vested		(149,394	)		6.00
Forfeited		(257,202	)		7.68
RSUs unvested at December 31, 2014		1,511,774		$	5.42		—
RSUs expected to vest		1,041,001		$	-		1.73

As of December 31, 2014, there was approximately $2.3 million of unrecognized pre-tax compensation expense related to share-based awards not yet vested that will be recognized over a weighted-average period of 1.7 years. The fair market value of our vested shares and shares expected to vest as of December 31, 2014 was $2.0 million and $5.9 million, respectively.

Compensation expense for share-based compensation programs was recognized as a component of operating expenses as follows:

	Years Ended December 31,
(In thousands)	2014			2013			2012
Share-based compensation expense recognized		$	2,456		$	2,411		$	3,119

In determining the estimated fair value of our stock option awards as of the grant date, we used the Black-Scholes option-pricing model with the assumptions illustrated in the table below:

	For the Year Ended December 31,
	2012
Expected Dividend Yield		0.00	%
Expected Volatility in Stock Price		56.4	%
Risk-Free Interest Rate		0.9	%
Expected Life of Stock Awards		6.0
Weighted-Average Fair Value at Grant Date	$	4.19

The expected volatility is based upon volatility of our common stock that has been traded for a period. The expected term of options granted is derived from historical exercise and termination patterns, and represents the period of time that options granted are expected to be outstanding. The risk-free rate used is based on the published U.S. Treasury yield curve in effect at the time of grant for instruments with a similar life. The dividend yield is based upon the most recently declared quarterly dividend as of the grant date.