SHARE COMPENSATION PLANS

EQUITY PLANS

The Company sponsors equity plans (the Plans) that enable the Company to grant equity-based compensation to employees and non-employee directors. The Company currently issues restricted stock units as incentive compensation under the Plans. In total, approximately 11.6 million shares of common stock have been authorized for issuance under the Plans, including approximately 5.0 million, 5.2 million, and 1.4 million authorized shares under the 2012 Equity Incentive Plan, 2004 Equity Incentive Plan and the General Employee Plan, respectively. Approximately 4.1 million shares were available and reserved for issuance under the 2012 Equity Incentive Plan at June 30, 2016.

The Compensation Committee of the Company's Board of Directors administers the Plans and determines the type of equity awards to be issued, the exercise period, vesting period and all other terms of instruments issued under the Plans.

NONVESTED SHARES

Time-Based Restricted Stock Unit Awards

Time-based restricted stock unit awards provide the participant with the right to receive a number of shares of the Company's common stock upon vesting of the awards provided the participant is employed by the Company on the vesting date. Time-based awards are valued using the Company's common stock price on the date of grant.

Time-based awards are not entitled to any dividend equivalents with respect to the restricted stock units unless otherwise determined by the Board, nor any dividends on stock that may be delivered in settlement of the restricted stock units unless and until the stock is issued in settlement of the restricted stock units.

Nonvested time-based share activity during the six months ended June 30, 2016, is detailed in the following table:



	Nonvested Shares		Weighted-Average Grant-Date Fair Value
Nonvested time-based shares at January 1, 2016	186,655		$	13.97
Granted	206,974		8.03
Vested	(33,080	)	13.88
Forfeited	—		—
Nonvested time-based shares at March 31, 2016	360,549		$	10.68
Granted	2,652		10.13
Vested	(2,747	)	14.24
Forfeited	(565	)	13.02
Nonvested time-based shares at June 30, 2016	359,889		$	10.63

Total compensation expense, included within General and administrative in the Company's Consolidated Statements of Comprehensive Income (Loss) related to grants of time-based nonvested shares was $0.6 million and $0.4 million, in the three months ended June 30, 2016 and 2015 respectively, and $1.0 million and $0.8 million, respectively, for the six months ended June 30, 2016 and 2015.

Performance-Based Restricted Stock Unit Awards

The Company grants performance-based restricted stock unit awards under its Long Term Incentive Plan (LTIP). The payout of the awards is dependent upon distinct components with separate sub-targets. The sub-targets are either market-based or performance-based and classified as either equity or liability. The market-based sub-targets are valued using a Monte Carlo simulation valuation model on the date of grant. The fair value of the liability-classified sub-targets are re-measured each reporting period. The existence of a market condition requires recognition of compensation cost for the performance restricted stock unit awards over the requisite period regardless of whether the market condition is satisfied. Total compensation expense, included within General and administrative in the Company's Consolidated Statements of Comprehensive Income (Loss), related to grants of performance-based restricted stock unit awards for the three months ended June 30, 2016 and 2015 was $0.5 million and $0.4 million, respectively and $0.9 million and $0.6 million, respectively, for each of the six months ended June 30, 2016 and 2015.

A performance-based restricted stock unit award provides the participant with the right to receive a number of shares of the Company's common stock depending on achievement of specific measurable performance criteria. The number of shares earned is determined at the end of each performance period, generally three years, based on the actual performance criteria predetermined by the Compensation Committee at the time of grant. In the period when it becomes probable that the performance criteria will be achieved, the Company recognizes expense for the proportionate share of the total fair value of the grant related to the vesting period that has already lapsed. The remaining cost of the grant is expensed over the balance of the vesting period. For awards that contain performance-based conditions, and for which the Company determines it is no longer probable that it will achieve the minimum performance criteria specified in the Plan, the Company reverses all of the previously recognized compensation expense in the period when such a determination is made.

Performance-based restricted stock unit awards are not entitled to any dividend equivalents with respect to the restricted stock units unless otherwise determined by the Board, nor any dividends on stock that may be delivered in settlement of the restricted stock units unless and until the stock is issued in settlement of the restricted stock units.

Share activity under nonvested performance-based restricted stock unit awards activity during the first six months of 2016 is detailed in the following table:



	Nonvested Shares	Weighted-Average Grant-Date Fair Value
Nonvested performance-based shares at January 1, 2016	379,277	$	15.34
Granted *	186,285	11.45
Vested	—
Forfeited	—	—
Nonvested performance-based shares at March 31, 2016	565,562	$	14.06
No activity	—
Nonvested performance-based shares at June 30, 2016	565,562	$	14.06

* The number of performance-based shares granted is based on the target award amounts in the performance restricted stock unit award agreements.

The following table presents the compensation expense of the nonvested shares outstanding at June 30, 2016, to be recognized over the remaining vesting periods:



(In thousands)	Time-based shares		Performance -based shares
Remaining 2016	$	1,106	$	1,158
2017	1,203		1,611
2018	583		757
2019	3		—
Total	$	2,895	$	3,526