8. EQUITY-BASED INCENTIVE AWARDS

Omnibus Plans

The Company has two equity-based incentive plans, the 2014 Omnibus Incentive Plan and 2018 Omnibus Incentive Plan (collectively “the Omnibus Plans”), which provide for equity incentives to employees. Each Omnibus Plan was designed with the intent of encouraging employees to acquire a vested interest in the growth and performance of the Company. The Omnibus Plans together permit the issuance of up to 135,000 shares of the Company’s common stock in the form of stock options, restricted stock awards, restricted stock units, performance share awards as well as awards such as stock appreciation rights, performance units, performance shares, bonus shares, and dividend share awards payable in the form of common stock or cash. The number of shares issuable under the Omnibus Plans is subject to customary adjustments in the event of stock splits, stock dividends, and certain other distributions on the Company’s common stock. At December 2020, awards with respect to a total of 120,751 shares, net of forfeitures, had been awarded pursuant to the Omnibus Plans and awards with respect to another 14,249 shares may be awarded under the Omnibus Plans.

Stock Options

The following is a summary of stock option activity during Q1 2021:


		Weighted
	Number	Average
	of	Exercise
	Shares	Price
Outstanding at September 2020	34,350	$	80.33
Granted	—		—
Exercised	(7,300)		59.19
Forfeited/Expired	(500)		84.00
Outstanding at December 2020	26,550	$	86.07

Restricted Stock Units

At December 2020, the Compensation Committee of the Board of Directors had authorized and approved the following restricted stock unit awards to members of the Company’s management team pursuant to the provisions of the Company’s Omnibus Plans:


	Restricted Stock Units(1)		Restricted Stock Units(2)		Restricted Stock Units(3)
Date of award:		October 2018		October 2019		October 2020
Original number of awards issued:		15,050		14,550		20,500
Service period:		36 months		36 months		36 months
Estimated fair value of award at grant date:	$	1,264,000	$	1,007,000	$	1,415,000
Non-vested awards outstanding at December 31, 2020:		5,019		9,701		20,500
Fair value of non-vested awards at December 31, 2020 of approximately:	$	597,000	$	1,154,000	$	2,438,000

(1)10,031 of the restricted stock units were vested as of December 2020. The remaining 5,019 restricted stock units will vest in October 2021.

(2)4,849 of the restricted stock units were vested as of December 2020. 4,850 restricted stock units will vest in October 2021 and 4,851 will vest in October 2022.

(3)The 20,500 restricted stock units will vest in equal amounts in October 2021, October 2022, and October 2023.

There is no direct cost to the recipients of the restricted stock units, except for any applicable taxes. The recipients of the restricted stock units are entitled to the customary adjustments in the event of stock splits, stock dividends, and certain other distributions on the Company’s common stock. All cash dividends and/or distributions payable to restricted stock recipients will be held in escrow until all the conditions of vesting have been met.

The restricted stock units provide that the recipients can elect, at their option, to receive either common stock in the Company, or a cash settlement based upon the closing price of the Company’s shares, at the time of vesting. Based on these award provisions, the compensation expense recorded in the Company’s Statement of Operations reflects the straight-line amortized fair value based on the liability method.

The following summarizes restricted stock unit activity under the Omnibus Plans during Q1 2021:


	Number	Weighted
	of	Average
	Shares	Fair Value
Nonvested restricted stocks units at September 2020	28,971	$	64.59
Granted	20,500		69.01
Vested	(14,251)		68.65
Expired	—		—
Nonvested restricted stocks units at December 2020	35,220	$	118.95

All Equity-Based Awards (stock options and restricted stock units)

Net income before income taxes included compensation expense of approximately $0.3 million and $0.1 million during Q1 2021 and Q1 2020, respectively, related to the amortization of all equity-based compensation awards. Total unamortized compensation expense related to these awards at December 2020 and September 2020 was approximately $3.9 million and $1.3 million, respectively.