(10)	Stock and Stock-based Compensation

Employee Stock Purchase Plan

The Company issued 5,668 and 3,640 shares of Company stock during 2015 and 2014, respectively, in connection with an Employee Stock Purchase (“ESPP”) Plan that commenced in April 2008.

Restricted Stock Units

As amended in May 2014, the stock holders increased the share available under the plan from 1,100,000 to 1,700,000. The number of RSUs awarded is generally subject to the substantial achievement of budgeted performance and other metrics in the year granted. The RSUs do not have voting rights of the common stock, and the shares of common stock underlying the RSUs are not considered issued and outstanding until actually vested and issued. In general, the awards convert to common stock on a one to one basis in 25% increments over four years from the grant date subject to a continuing employment obligation.

The following table summarizes the activity for unvested restricted stock units for the years ended December 31, 2015 and 2014:

	Units			Weighted Average Fair Value Per RSU
Unvested restricted stock units at December 31, 2013		471,630		$	4.77
Awarded		160,000		$	6.84
Vested		(211,719	)	$	4.23
Forfeited		(251,269	)	$	6.47
Unvested restricted stock units at December 31, 2014		168,642		$	4.88
Awarded		231,356		$	3.47
Vested		(72,298)		$	4.44
Forfeited		(11,853)		$	4.55
Unvested restricted stock units at December 31, 2015		315,847		$	3.99

Compensation expense of approximately $0.46 million and $0.68 million was recorded in general administrative expense for the years ended December 31, 2015 and 2014, respectively, to reflect the fair value of the original RSU’s granted or anticipated to be granted less forfeitures, amortized over the portion of the vesting period occurring during the period. The fair value of the RSUs was based on the closing price of our common stock as reported on the NASDAQ Stock Market (“NASDAQ”) on the grant date. Based upon the fair value on the grant date of the number of shares awarded or expected to be awarded, it is anticipated that approximately $2.10 million of additional compensation cost will be recognized in future periods through 2017. The weighted average period over which this additional compensation cost will be expensed is 3 years.

During February 2016, the Board of Directors approved the grants of approximately 343,000 RSUs in conjunction with the Plan, of which, approximately 275,000 units are subject to 2016 fiscal performance measures.

Stock Options

The Company recognizes compensation expense related to stock options in accordance with ASC 718 and has measured the share-based compensation expense for stock options granted based upon the estimated fair value of the award on the date of grant and recognizes the compensation expense over the award’s requisite service period. The weighted average fair values were calculated using the Black Scholes-Merton option pricing model. There were no options issued in 2015 or 2014, and no stock options outstanding as of December 31, 2015 and 2014.

Details of stock option activity during the years ended December 31, 2015 and 2014 follows:

	2015		2015 Weighted Average Exercise Price		2014		2014 Weighted Average Exercise Price
Outstanding at beginning of year		-	$	-		16,944	$	4.09
Options granted		-		-		—		—
Options exercised		-		-		(11,980)		4.09
Options forfeited		-		-		—		4.09
Options expired		-		-		(4,964)		4.09
Outstanding at end of year		-		-		-		-
Exercisable at end of year		-	$	-		-	$	-

No Compensation expense was recorded in the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015, there was no unrecognized compensation cost related to stock option awards.

Board of Directors Compensation

Directors who are not employees of the Company and who do not have a compensatory agreement providing for service as a director of the Company receive a retainer fee payable quarterly. Eligible directors may elect to defer 50% to 100% of their retainer fee, which may be used to acquire common stock of the Company at the fair market value on the date the retainer fee would otherwise be paid, acquire stock units equivalent to the fair market value of the Company’s common stock on the date the retainer fee would otherwise be paid, or be paid in cash. During the years ended December 31, 2015 and 2014, directors of the Company elected to defer retainer fees to acquire approximately 36,200 and 18,000, respectively, stock units. Compensation expense of approximately $178,000 and $130,000 was recorded in the years ended December 31, 2015 and 2014 respectively, which is included in general and administrative expenses in the consolidated statements of operations.