10.	SHAREHOLDERS’ EQUITY

Stock-Based Compensation Plans

The Company currently has four equity compensation plans which reserve shares of common stock for issuance to key employees, directors, consultants and advisors to the Company. The following is a description of these plans:

The 1995 Stock Option Plan for Non-Employee Directors - This plan, adopted in 1995, provides for automatic awards of non-qualified options to directors of the Company who are not employees of the Company or its affiliates. All options granted under this plan will have a ten year term from grant date and are immediately exercisable. A maximum of 100,000 shares may be granted for awards under this plan. The ability to grant new awards under this plan ended on October 12, 2006 but awards granted prior to such date continue until their expiration. No options were outstanding under this plan as of December 31, 2015.

The 1999 Long-term Stock Incentive Plan, as amended (“1999 Plan”) - This plan was adopted in October 1999 with substantially the same terms and provisions as the 1995 Long-term Stock Incentive Plan. The number of shares that may be granted under this plan to a maximum of 7,500,000. The maximum number of shares granted per type of award to any individual may not exceed 1,500,000 in any calendar year and 3,000,000 in total. The ability to grant new awards under this plan ended on December 31, 2009 but awards granted prior to such date continue until their expiration. A total of 492,750 options were outstanding under this plan as of December 31, 2015.

The 2006 Stock Incentive Plan For Non-Employee Directors - This plan, adopted by the Company’s stockholders in October, 2006, replaces the 1995 Stock Option Plan for Non-Employee Directors. The Company adopted the plan so that it could offer directors of the Company who are not employees of the Company or of any entity in which the Company has more than a 50% equity interest (“independent directors”) an opportunity to participate in the ownership of the Company by receiving options to purchase shares of common stock at a price equal to the fair market value at the date of grant of the option and restricted stock awards. Awards for a maximum of 200,000 shares may be granted under this plan. A total of 15,000 options were outstanding under this plan as of December 31, 2015.

The 2010 Long-term Stock Incentive Plan (“2010 Plan”) - This plan was adopted in April, 2010 with substantially the same terms and provisions as the 1999 Long-term Stock Incentive Plan. The maximum number of shares granted per type of award to any individual may not exceed 1,500,000 in any calendar year. Restricted stock grants and common stock awards reduce stock options otherwise available for future grant. Awards for a maximum of 7,500,000 shares may be granted under this plan. A total of 446,875 options and 206,120 restricted stock units were outstanding under this plan as of December 31, 2015.

Shares issued under our share-based compensation plans are usually issued from shares of our common stock held in the treasury.

Compensation cost related to non-qualified stock options recognized in operating results (selling, general and administrative expense) for 2015, 2014 and 2013 was $0.2 million, $0.7 million, and $1.1 million respectively, and of these amounts NATG segment’s compensation cost related to non-qualified stock options was de minimis in 2015 and 2014 and $0.2 million in 2013. The related future income tax benefits recognized for 2015, 2014 and 2013 were $0.1 million, $0.2 million and $0.4 million, respectively.

Stock Options

The following table presents the weighted-average assumptions used to estimate the fair value of options granted in 2015, 2014 and 2013:

	2015			2014			2013

Expected annual dividend yield		0	%		0	%		0	%
Risk-free interest rate		1.73	%		2.02	%		1.66	%
Expected volatility		40.2	%		46.9	%		41.1	%
Expected life in years		6.3			6.2			7.9

The following table summarizes information concerning outstanding and exercisable options:

	Weighted Average
	2015					2014					2013
	Shares			Exercise Price		Shares			Exercise Price		Shares			Exercise Price
Outstanding at beginning of year		1,127,250		$	16.12		1,175,499		$	16.11		1,353,059		$	15.88
Granted		25,000		$	10.62		90,000		$	13.56		60,000		$	9.54
Exercised		(4,000	)	$	6.30		(33,749	)	$	9.78		(34,310	)	$	3.04
Cancelled or expired		(193,625	)	$	16.29		(104,500	)	$	15.83		(203,250	)	$	14.84
Outstanding at end of year		954,625		$	15.98		1,127,250		$	16.12		1,175,499		$	16.11

Options exercisable at year end		832,125					839,500					772,749
Weighted average fair value per option granted during the year	$	4.44				$	6.46				$	4.44

The total intrinsic value of options exercised was de minimis for 2015 and $0.2 million for 2014 and 2013.

The following table summarizes information about options vested and exercisable or nonvested that are expected to vest (nonvested outstanding less expected forfeitures) at December 31, 2015:

	Range of Exercise Prices				Number Exercisable		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value (in millions)
$	5.00	to	$	10.00		47,202	$	9.51		7.46	$	-
$	10.01	to	$	15.00		390,950	$	12.84		4.98		-
$	15.01	to	$	20.00		431,763	$	18.22		3.93		-
$	20.01	to	$	20.15		100,000	$	20.15		1.04		-
$	5.00	to	$	20.15		969,915	$	15.83		4.22	$	-

The aggregate intrinsic value in the tables above represents the total pretax intrinsic value (the difference between the closing stock price on the last day of trading in 2015 and the exercise price) that would have been received by the option holders had all options been exercised on December 31, 2015. This value will change based on the fair market value of the Company’s common stock.

The following table reflects the activity for all unvested stock options during 2015:

	Shares			Weighted Average Grant- Date Fair Value
Unvested at January 1, 2015		287,750		$	8.21
Granted		25,000		$	4.44
Vested		(132,125	)	$	8.67
Forfeited		(58,125	)	$	7.22
Unvested at December 31, 2015		122,500		$	7.40

At December 31, 2015, there was approximately $0.2 million of unrecognized compensation costs related to unvested stock options, which is expected to be recognized over a weighted average period of 1.48 years. The total fair value of stock options vested during 2015, 2014 and 2013 was $1.1 million, $1.2 million and $1.6 million, respectively.

Restricted Stock and Restricted Stock Units

In August 2010, the Company granted 175,000 RSUs under the 2010 Plan to a key employee who is also a Company director. These RSUs have none of the rights as other shares of common stock, other than rights to cash dividends, until common stock is distributed. This RSU award was a non-performance award which vests in ten equal annual installments of 17,500 units beginning May 15, 2011 and each May 15, thereafter. Compensation expense related to this RSU award was approximately $0.2 million during each of 2015 and 2014 and $0.3 million in 2013.

In October 2011, the Company granted 100,000 RSUs under the 2010 Plan to, at that time, a key employee. This RSU award was a non-performance award which vested in ten equal annual installments of 10,000 units beginning October 3, 2012 and each October 3 thereafter. The termination without cause of this key employee during 2013 caused the accelerated vesting of the remaining 90,000 shares in accordance with the restricted stock agreement with the Company. Compensation expense related to these restricted stock awards was zero during each of 2015 and 2014 and approximately $0.8 million in 2013.

In November 2011, the Company granted 100,000 RSUs under the 2010 Plan to a key employee who is also a Company director. This RSU award was a non-performance award which vests in ten equal annual installments of 10,000 units beginning November 14, 2012 and each November 14 thereafter. Compensation expense related to this RSU award was approximately $0.2 million during each of 2015, 2014 and 2013.

In January 2012 and March 2012, the Company granted 50,000 RSUs under the 2010 Plan to each of two key employees. These RSU awards were non-performance awards which vest in ten equal annual installments of 10,000 units beginning January 3, 2013 and March 1, 2013, respectively, and each January 3 and March 1, thereafter. The termination without cause of one of these key employees during 2015 caused the accelerated vesting of the remaining 35,000 shares in accordance with the restricted stock agreement with the Company. Compensation expense related to these RSU awards were approximately $0.4 million, $0.3 million and $0.4 million during each of 2015, 2014 and 2013, respectively.

In July 2015, the Company granted 23,620 RSUs under the 2010 Plan to a key employee. This RSU award was a non-performance award which vests in four equal annual installments of 5,905 units beginning July 6, 2015 and each July 6 thereafter. Compensation expense related to this RSU award was approximately $0.1 million in 2015.

Share-based compensation expense for restricted stock issued to Directors was $0.1 million in each of 2015, 2014 and 2013.