11. STOCK-BASED COMPENSATION

Equity Incentive Plan

The Company’s 2019 Equity Incentive Plan and its predecessor equity plan provide for the grant of shares of restricted stock, restricted share units, stock options, stock appreciation rights, dividend or dividend equivalent rights, stock awards and other awards valued in whole or in part by reference to or otherwise based on the Company’s common stock, to officers, employees and directors of the Company.

Restricted Stock Units

The Company grants restricted stock units (“RSUs”) in connection with a long-term incentive plan. Awards with time-based vesting requirements primarily vest ratably over a three-year period. Awards with performance-based vesting requirements cliff vest after a three-year performance cycle and only after the achievement of certain performance criteria over that cycle. The number of shares ultimately issued for the performance-based units may vary from 0% to 200% of their target amount based on the achievement of defined performance targets.

Compensation expense recognized for RSUs totaled $4,168 and $3,158, respectively, for the nine months ended October 2, 2021 and September 26, 2020.

(1) Includes 106,566 nonvested performance-based RSUs.

The Company had $7,131 of total unrecognized compensation cost related to the RSU awards as of October 2, 2021. That cost is expected to be recognized over a weighted average period of 1.8 years.

Stock Options

The exercise prices per share are equal to the market price of Helios stock on the respective grant dates. The options vest ratably over a three-year period and have a 10-year expiration. The grant date fair value of the options was estimated using a Black Scholes valuation model. At October 2, 2021, the Company had $357 of unrecognized compensation cost related to the options, which is expected to be recognized over a weighted average period of 2.2 years.

Employee Stock Purchase Plans

The Company maintains an Employee Stock Purchase Plan (“ESPP”) in which U.S. employees are eligible to participate. Employees who choose to participate are granted an opportunity to purchase common stock at 85 percent of market value on the first or last day of the quarterly purchase period, whichever is lower. Employees in the United Kingdom (“UK”), under a separate plan, are granted an opportunity to purchase the Company’s common stock at market value, on the first or last day of the quarterly purchase period, whichever is lower, with the Company issuing one additional free share of common stock for each six shares purchased by the employee under the plan. Employees purchased 22,747 shares at a weighted average price of $57.93, and 33,519 shares at a weighted average price of $30.65, under the ESPP and UK plans during the nine months ended October 2, 2021 and September 26, 2020, respectively. The Company recognized $431 and $220 of compensation expense during the nine months ended October 2, 2021 and September 26, 2020, respectively.

Nonemployee Director Fees Plan

The Company’s 2012 Nonemployee Director Fees Plan compensates nonemployee directors for their board service with shares of common stock. Directors were granted 20,375 and 11,775 shares for the nine months ended October 2, 2021 and September 26, 2020, respectively. The Company recognized director stock compensation expense of $1,586 and $480 for the nine months ended October 2, 2021 and September 26, 2020, respectively.