5.	Share-Based Compensation

In June 2007, our board of directors and stockholders approved the 2007 Stock Incentive Plan (the “2007 Plan”). Under the 2007 Plan, we may grant restricted stock, stock options, stock appreciation rights, restricted stock units, performance awards, unrestricted stock awards and other incentive awards. The maximum number of shares of common stock available for the grant of awards under the 2007 Plan is 6,125,000. Awards of any stock options are to be priced at not less than the fair market value at the date of the grant. We use (i) the closing stock price on the date of grant for the fair value of restricted stock awards, including performance-based awards, (ii) the Monte Carlo simulation method for the fair value of market-based awards, (iii) the fair market value of our common stock on the valuation date for cash-settled performance awards and (iv) the Black-Scholes option price model to measure the fair value of stock options. The vesting period of any stock award is to be determined by the board or an authorized committee at the time of the grant.

Share-based compensation expense amounted to $4.7 million, $6.3 million and $8 million for the years ended December 31, 2017, 2016 and 2015, respectively. Such amounts represent the estimated fair value of stock awards for which the requisite service period elapsed during those periods. Share-based compensation expense for the years ended December 31, 2017, 2016 and 2015, included $449,000, $214,000 and $735,000, respectively, related to grants to non-employee directors.

Stock Options

There were no stock option grants during the years ended December 31, 2017, 2016 and 2015. During the year ended December 31, 2017, 38,525 options expired, and no options were outstanding as of December 31, 2017. There were no options exercised during the years ended December 31, 2017, 2016 and 2015.

Nonvested Shares

Share grants totaling 2,343,522 shares, 1,318,229 shares and 1,278,329 shares with an approximate aggregate fair market value of $5.6 million, $2.5 million and $6.2 million, based on the closing price of our common stock on the date of grant, were granted to employees and non-employee directors during the years ended December 31, 2017, 2016 and 2015, respectively. Included in the share grants for 2017, 2016 and 2015, are 1,492,652 shares, 550,272 shares and 724,249 shares, respectively, awarded to our executive officers. The aggregate fair market value of these shares on the grant date was $3.6 million, $0.3 million and $4.5 million, respectively, to be expensed over a service period of approximately three years, subject to certain performance restrictions. The share grants for executive officers noted above does not include the cash-settled performance awards, which are discussed in more detail below.

A summary of the status of nonvested shares for the years ended December 31, 2017, 2016 and 2015, is presented below:

	Shares			Weighted Average Grant-Date Fair Value
Nonvested at January 1, 2015		1,122,410		$	16.52
Granted		1,278,329			4.87
Vested		(419,222	)		15.26
Canceled		(246,261	)		14.30
Nonvested at December 31, 2015		1,735,256		$	8.60
Granted		1,318,229			1.90
Vested		(992,461	)		7.03
Canceled		(107,960	)		17.33
Nonvested at December 31, 2016		1,953,064		$	4.39
Granted		2,343,522			2.39
Vested		(902,197	)		6.73
Canceled		(89,728	)		5.17
Nonvested at December 31, 2017		3,304,661		$	2.21

As of December 31, 2017, unrecognized compensation expense related to the nonvested shares amounted to $4 million, which will be recognized over a remaining service period of two years.

Cash-settled performance awards

In 2016, in addition to the share grants discussed above, we awarded 1,100,543 cash-settled performance awards, subject to certain performance conditions, to our executive officers. The aggregate fair market value of the cash-settled shares on the grant date was approximately $1 million, to be expensed over a remaining service period of approximately two years, subject to performance conditions.

The cash-settled performance awards represent a non-equity unit with a conversion value equal to the fair market value of a share of the Company’s common stock at the vesting date. These awards are classified as liability awards due to the cash settlement feature. Compensation costs associated with the cash-settled performance awards are re-measured, based on the fair market value of our common stock of the vested portion of the award, at each interim reporting period and an adjustment is recorded in general and administrative expenses on our consolidated statements of operations. For the years ended December 31, 2017, and December 31, 2016, we recognized $0.8 million and $1.3 million in expense related to the cash-settled performance awards, respectively. As of December 31, 2017, we recorded a current liability of $1.6 million and a non-current liability of $0.5 million on our consolidated balance sheet related to these awards.

Subsequent Restricted Share Award

Subsequent to December 31, 2017, 774,590 cash settled performance awards, subject to certain performance conditions, and 387,295 restricted shares, subject to three-year total shareholder return (“TSR”) conditions, assuming maximum TSR, were granted to our executive officers. The aggregate fair market value of the cash settled performance awards and TSR restricted shares on the date of grant was approximately $2.4 million and $0.8 million, respectively, to be expensed over a remaining service period of approximately three years.

Employee Benefit Plan

The Company has a defined contribution employee benefit plan covering substantially all of its employees. We make a matching contribution equal to 100% of each pre-tax dollar contributed by the participant on the first 3% of eligible compensation and 50% on the next 2% of eligible compensation. The Company made contributions to the plan of approximately $333,000, $338,000 and $404,000 during the years ended December 31, 2017, 2016 and 2015, respectively.