Stock Based Compensation |
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Stock Based Compensation |
Stock Options issued to Employees, Officers and Directors
The Optex Systems Holdings 2009 Stock Option Plan provides for the issuance of up to 250. There were new grants of stock options during the twelve months ended October 3, 2021. As of October 3, 2021, there are stock options outstanding. shares to the Company’s officers, directors, employees and to independent contractors who provide services to Optex Systems Holdings as either incentive or non-statutory stock options determined at the time of grant. During the twelve months ended September 27, 2020, all of the outstanding stock options were repurchased at $ per option for a total transaction of $
Restricted Stock Units issued to Officers and Employees
On June 14, 2016, the Compensation Committee (“Committee”) of the Board of Directors of Optex Systems Holdings, Inc. approved the Company’s 2016 Restricted Stock Unit Plan (the “Plan”). The Plan provides for the issuance of restricted stock units (“RSU”) for up to shares of the Company’s common stock to Optex Systems Holdings officers and employees. Each RSU constitutes a right to receive one share of the Company’s common stock, subject to vesting, which unless otherwise stated in an RSU agreement, shall vest in equal amounts on the first, second and third anniversary of the grant date. Shares of the Company’s common stock underlying the number of vested RSUs will be delivered as soon as practicable after vesting. During the period between grant and vesting, the RSUs may not be transferred, and the grantee has no rights as a shareholder until vesting has occurred. If the grantee’s employment is terminated for any reason (other than following a change in control of the Company or a termination of an officer other than for cause), then any unvested RSUs under the award will automatically terminate and be forfeited. If an officer grantee’s employment is terminated by the Company without cause or by the grantee for good reason, then, provided that the RSUs have not been previously forfeited, the remaining unvested portion of the RSUs will immediately vest as of the officer grantee’s termination date. In the event of a change in control, the Company’s obligations regarding outstanding RSUs shall, on such terms as may be approved by the Committee prior to such event, immediately vest, be assumed by the surviving or continuing company or cancelled in exchange for property (including cash).
On January 7, 2020, the Company issued common shares to one director and two officers, net of tax withholding of $ thousand, in settlement of restricted stock units which vested on January 1, 2020.
On February 17, 2020, the Company granted restricted stock units to Bill Bates, General Manager of the Applied Optics Center. The restricted stock units vest as of January 1 each year subsequent to the grant date over a -year period at a rate of % in year one, and % each year thereafter. The stock price at grant date was $ per share. The Company will amortize the grant date fair market value of $ thousand to stock compensation expense on a straight-line basis across the -year vesting period beginning on February 17, 2020.
On January 2, 2021, the Company issued common shares to directors and officers, net of tax withholding of $ thousand, in settlement of restricted stock units which vested on January 1, 2021.
Effective December 1, 2021, the vesting terms of Danny Schoening’s RSU grant from January 2019 were revised as described in “Item 11. Executive Compensation – Employment Agreements - Danny Schoening,” which disclosure is incorporated by reference herein.
Restricted Shares Issued to Independent Board Members
On April 30, 2020, the Optex Systems Holdings, Inc. Board of Directors held a meeting and voted to increase the annual board compensation for the three independent directors from $22,000 to $36,000 with an effective date of January 1, 2020, in addition to granting restricted shares to each independent director which shall vest at a rate of % per year (20,000 shares) each January 1st, over the next , through January 1, 2025. The total market value for the shares is $ thousand based on the stock price of $ as of April 30, 2020. The Company will amortize the fair market value to stock compensation expense on a straight-line basis across the vesting period beginning on April 30, 2020. On January 1, 2021, of the restricted director shares vested.
There were new grants of restricted stock units during the twelve months ended October 3, 2021.
The following table summarizes the status of Optex Systems Holdings’ aggregate non-vested restricted stock units and restricted shares granted as of October 3, 2021:
Stock Based Compensation Expense
Equity compensation is amortized to general and administrative expenses based on a straight-line basis across the vesting or service period as applicable. The recorded compensation costs for restricted shares granted and restricted stock units awarded as well as the unrecognized compensation costs are summarized in the table below:
The unrecognized compensation expense for restricted shares and restricted stock units is expected to be recognized over a weighted-average period of years and years, respectively.
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