13. Stock plans:

The 2008 long-term incentive plan (“2008 Plan”) allows for eligible participants to be granted equity awards. The plan was a legacy plan of Penseco Financial Services Corporation. Under the 2008 Plan the Compensation Committee of the board of directors has broad authority with respect to awards granted under the 2008 Plan, including, without limitation, the authority to:

Designate the individuals eligible to receive awards under the 2008 Plan.

Determine the size, type and date of grant for individual awards, provided that awards approved by the Committee are not effective unless and until ratified by the board of directors.

Interpret the 2008 Plan and award agreements issued with respect to individual participants.

Persons eligible to receive awards under the 2008 Plan include directors, officers, employees, consultants and other service providers of the Company and its subsidiaries, except that incentive stock option may be granted only to individuals who are employees on the date of grant.

There are 129,207 shares of the Company’s common stock available for grant as awards pursuant to the 2008 Plan.

The 2008 Plan authorizes grants of stock options, stock appreciation rights, dividend equivalents, performance awards, restricted stock and restricted stock units. No restricted stock grants were awarded in 2016 and 2015.

The activity related to restricted stock for each of the years ended December 31, 2016, 2015 and 2014 was as follows:


Year Ended December 31	2016	2015	2014
Nonvested, January 1	14,309	14,309	17,245
Granted shares
Vested shares	1,947		2,936
Forfeited shares
Nonvested, December 31	12,362	14,309	14,309

The Company expenses the fair value of all-share based compensation over the requisite service period of five years commencing at grant date. The fair value of restricted stock is expensed on a straight-line basis. Restricted stock granted to officers cliff vest after five years. The Company classifies share-based compensation for employees within “salaries and employee benefits expense” on the Consolidated Statements of Income and Comprehensive Income.

The Company recognized $71, $69 and $70 of compensation expense for the years ended December 31, 2016, 2015 and 2014, respectively for stock awards granted in the years ended December 31, 2013 and 2012. As of December 31, 2016, the Company had $37 of unrecognized compensation expense associated with restricted stock awards.