10. STOCK-BASED COMPENSATION

Equity Incentive Plan

The Company’s 2019 Equity Incentive Plan ("2019 Plan") and its predecessor equity plan provide for the grant of shares of restricted stock, restricted stock 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 $2,259 and $1,360, respectively, for the three months ended April 2, 2022 and April 3, 2021.

The Company had $12,419 of total unrecognized compensation cost related to the RSU awards as of April 2, 2022. That cost is expected to be recognized over a weighted average period of 2.2 years.

Stock Options

In 2020 and 2021, the Company granted stock options to its officers. As of April 2, 2022, there were 14,931 unvested options and 10,034 vested unexercised options. The exercise prices per share, which range from $35.04 to $55.30, 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 April 2, 2022, the Company had $234 of unrecognized compensation cost related to the options, which is expected to be recognized over a weighted average period of 1.7 years.

Director Compensation

Effective January 1, 2022, the board terminated the 2012 Non-Employee Director Fees Plan (the “2012 Directors Plan”) and approved a new Helios Technologies, Inc. Non-Employee Director Compensation Policy (the “Director Compensation Policy”), which revised the compensation for Non-Employee Directors. The Director Compensation Policy compensates Non-Employee Directors for their board service with cash awards and equity-based compensation through grants of RSUs, issued pursuant to the 2019 Plan, which vest over a one year period. Directors were granted 3,799 RSUs during the three months ended April 2, 2022. The Company recognized director stock compensation expense of $23 for the three months ended April 2, 2022.

Directors were granted 7,375 shares of stock and the Company recognized director stock compensation expense of $538 for the three months ended April 3, 2021, under the 2012 Directors Plan.

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 7,734 shares at a weighted average price of $68.48, and 7,408 shares at a weighted average price of $44.90, under the ESPP and UK plans during the three months ended April 2, 2022 and April 3, 2021, respectively. The Company recognized $91 and $195 of compensation expense during the three months ended April 2, 2022 and April 3, 2021, respectively.