NOTE J—EQUITY-BASED COMPENSATION

Grants for the

three

months ended

September 30, 2019

and

2018:

There were

grants of employee stock options, restricted stock units (“RSUs”) or stock appreciation rights (“SARs”) during the

three

months ended

September 30, 2019.

The weighted average estimated fair value of employee RSUs granted during the

three

months ended

September 30, 2018

was

$10.93

per share (using the weighted average pre vest cancellation rate of

4.36%

for the

three

months ended

September 30, 2018,

on an annual basis).

Employee stock benefit plans

As of

September 30, 2019,

the Company had

two

equity incentive plans from which the Company

may

grant future equity awards and

one

expired equity incentive plans from which

future equity awards

may

be granted but had outstanding equity awards granted prior to expiration. The Company also had

one

employee stock purchase plan. As of

September 30, 2019,

approximately

273,000

shares of common stock remain available for grant under the Company’s employee stock purchase plan and approximately

1,745,000

shares of common stock remain available for grant under the Company’s equity incentive plans.

The table below presents a summary of information relating to the Company’s stock option, RSU and SAR grants pursuant to its equity incentive plans (unaudited):

	Number of Options/SARs/ RSUs			Weighted average exercise price		Weighted average remaining contractual term (years) (3)		Aggregate value (**)
	in thousands							in thousands
Outstanding at June 30, 2019		1,951		$	3.64		4.41
Options granted		-			-
SARs granted		-			-
RSUs granted		-			-
Options / SARs / RSUs cancelled/forfeited/expired		(16	)		1.11
Options / SARs exercised and RSUs vested		(100	)	$	2.15
Outstanding at September 30, 2019 (1)		1,835		$	3.75		4.20	$	18,979
Exercisable at September 30, 2019 (2)		617		$	9.63		4.12	$	2,750

(*) Represents an amount lower than

$1.

(**) Calculation of aggregate intrinsic value is based on the share price of the Company’s common stock on

September 30, 2019 (

$14.09

per share).

(

) Due to the ceiling imposed on the SAR grants, the outstanding amount above can be exercised for a maximum of

1,763,000

shares of the Company’s common stock as of

September 30, 2019.

SAR grants made on or after

January 1, 2012

are convertible for a maximum number of shares of the Company’s common stock equal to

50%

of the SARs subject to the grant.

(

) Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of

577,000

shares of the Company’s common stock as of

September 30, 2019.

(

) Calculation of weighted average remaining contractual term does

not

include RSUs that were granted, which have indefinite contractual term.

Additional information about stock options, SARs and RSUs outstanding and exercisable at

September 30, 2019

with exercise prices above

$14.09

per share (the closing price of the Company’s common stock on

September 30, 2019)

is as follows (unaudited):

	Exercisable				Unexercisable				Total
Exercise prices	Number of Options/ SARs / RSUs (in thousands)		Weighted average exercise price		Number of Options/ SARs / RSUs (in thousands)		Weighted average exercise price		Number of Options/ SARs / RSUs (in thousands)		Weighted average exercise price

Less than $14.09		617	$	9.63		1,218	$	0.77		1,835	$	3.75
Above $14.09		-	$	-		-	$	-		-	$	-
Total		617	$	9.63		1,218	$	0.77		1,835	$	3.75

The Company’s aggregate equity-based compensation expense for the

three

months ended

September 30, 2019

and

2018

totaled

$1,873

and

$1,752,

respectively.

As of

September 30, 2019,

there was

$6,836

of total unrecognized equity-based compensation expense related to unvested equity-based compensation awards granted under the Company’s equity incentive plans. This amount is expected to be recognized during the period from

2019

through

2023.