NOTE I – Stock Based Compensation Plan

As more fully discussed in Note 12 of the notes to the consolidated financial statements in our 2017 Annual Report on Form 10-K, we have awards outstanding for Common Stock under stock-based employee compensation plans.

The following table summarizes our award activity during the six months ended June 30, 2018:

	Service-Based Restricted Stock Awards					Performance-Based Restricted Stock Awards					Stock-Settled Appreciation Rights
	Shares or Units			Weighted- Average Award Price		Shares or Units			Weighted- Average Award Price		Rights		Weighted- Average Award Price
Outstanding at December 31, 2017		254,490		$	21.88		179,774		$	21.42		57,000	$	18.14
Granted/Issued		116,035			22.95		103,940			22.95		—		—
Awards vested or rights exercised⁽¹⁾		(124,550	)		22.50		(48,661	)		24.10		—		—
Forfeited		(1,100	)		22.74		(7,033	)		21.25		—		—
Outstanding at June 30, 2018		244,875		$	22.07		228,020		$	21.55		57,000	$	18.14
Exercisable at June 30, 2018		—					—					57,000	$	18.14
Awards expected to vest		244,875		$	22.07		206,330		$	21.50

(1)	Includes shares repurchased from employees for employee’s tax liability.

Grants of equity awards are made to certain officers and key employees under stockholder approved long-term incentive plans. The service-based awards generally vest over one or four years. The number of performance-based awards to be issued is based on the achievement of the criteria established at the time of the grant and cliff vest after three years. All awards are settled in shares of our common stock.

The total fair value of performance-based awards that vested in 2018 was approximately $1.0 million. The total fair value of service-based awards that vested in 2018 was approximately $2.4 million. The aggregate intrinsic value of service-based and performance-based awards at June 30, 2018 was approximately $5.3 million and $4.9 million, respectively. The aggregate intrinsic value of vested and outstanding stock-settled appreciation rights at June 30, 2018 was approximately $0.2 million.

The compensation for all awards is being charged to selling, general and administrative expenses over the respective grant's vesting periods, primarily on a straight-line basis. Stock based compensation expense for the six months ended June 30, 2018 and 2017 was approximately $2.6 million and $2.2 million, respectively.

As of June 30, 2018, the remaining unamortized compensation cost related to unvested equity awards was approximately $6.7 million and is expected to be recognized over a weighted-average period of 2.4 years.