CJ 2017 Annual Report

and non-employee directors under the 2015 LTIP. During the year ended December 31, 2015 approximately 2.8 million restricted shares were granted to employees and non-employee directors under the 2015 LTIP, including approximately 0.6 million replacement restricted shares, at fair market values ranging from $3.55 to $15.10 per share. To the extent permitted by law, the recipient of an award of restricted shares had all of the rights of a shareholder with respect to the underlying common shares, including the right to vote the common shares and to receive all dividends or other distributions made with respect to the common shares. Dividends on restricted shares would have been deferred until the lapsing of the restrictions imposed on the shares and would be held by the Company for the account of the recipient (either in cash or to be reinvested in restricted shares) until such time. Payment of the deferred dividends and accrued interest, if any, would have been made upon the lapsing of restrictions on the restricted shares, and any dividends deferred in respect of any restricted shares would be forfeited upon the forfeiture of such restricted shares. As of December 31, 2016, the Company did not issue any dividends A summary of the status and changes during the year ended December 31, 2016 of the Company’s shares of non- vested restricted shares is presented below: Shares Weighted Average Grant-Date Fair Value (in thousands) Non-vested at December 31, 2014 (Predecessor) 1,377 $ 23.39 Granted 2,850 $ 13.50 Forfeited (238) $ 14.81 Vested (718) $ 21.97 Non-vested at December 31, 2015 (Predecessor) 3,271 $ 15.70 Granted — — Forfeited (576) 15.30 Vested (1,797) 15.92 Non-vested at December 31, 2016 (Predecessor) 898 $ 15.34 As of December 31, 2016, and 2015 there was $8.9 million and $29.9 million of total unrecognized compensation cost related to restricted shares. That cost was expected to be recognized over a weighted-average period of 1.42 years. The weighted-average grant-date fair value per share of restricted shares granted during the year ended December 31, 2015 was $13.50. As of December 31, 2016, the Company had 5.3 million stock options and restricted shares outstanding to employees and non-employee directors, 0.3 million of which were issued under the 2006 Plan, 3.9 million were issued under the 2010 Plan, 0.2 million were issued under the 2012 Plan and the remaining 0.9 million were issued under the 2015 Plan. Share-based compensation expense was $17.7 million and $18.5 million for the years ended December 31, 2016 and 2015, respectively, and is included in selling, general and administrative expenses, direct costs and research and development on the consolidated statements of operations. The total income tax benefit recognized in the consolidated statements of operations in connection with share-based compensation expense was approximately $6.2 million and $6.5 million for the years ended December 31, 2016 and 2015, respectively. C&J ENERGY SERVICES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 105 Note 8 - Related Party Transactions The Company obtained support services from vendors which are affiliated with one of its employees. For the year ended December 31, 2017, purchases from these vendors totaled $0.9 million. Amounts due to these vendors as of December 31, 2017 totaled $0.3 million. There were no purchases from these vendors for the years ended December 31, 2016 or 2015. The Company obtained support services from Nabors Corporate Services, Inc., on a transitional basis, for the processing of payroll, benefits and certain administrative services of the C&P business in normal course following the completion of the Nabors Merger.  There were no obligations incurred to Nabors Corporate Services during 2017. During 2016 and prior to the Confirmation Date, the Company, the Official Committee of Unsecured Creditors of CJ Holding Co, the Steering Committee of Lenders under the Credit Agreement and the DIP Facility, and Nabors entered into a mediated