NOTE 10. EMPLOYEE STOCK PLANS

We currently maintain the Amended and Restated 2004 Stock Incentive Plan (“Plan”). Under the Plan, there are a total of 7.8 million shares of common stock authorized for issuance, with full value awards being counted as 1.25 shares of common stock for purposes of the share limit. The Plan expires in October 2020.

As of October 1, 2011, there were approximately 2.7 million shares of our common stock available for grant under the Plan. We generally grant stock options that vest over a four year service period, and restricted stock awards and units that vest over a one to four year service period, and in certain cases each may vest earlier based upon the achievement of specific performance-based objectives as set by our board of directors.

In July 2011, our board of directors approved the grant of 0.2 million performance stock units (PSUs) to certain executive officers with an aggregate estimated grant date fair value of $0.9 million. These PSUs vest upon the achievement of certain revenue growth targets through June 30, 2013, relative to certain comparable companies. Vesting is also contingent upon service conditions being met through August 2015. If the performance conditions are not achieved, then the corresponding PSUs will be forfeited in the first quarter of fiscal year 2014.

The following table summarizes the combined activity under all of our equity incentive plans for the three months ended October 1, 2011:


	Shares			Stock			Weighted-		Restricted Stock			Weighted-
	Available			Options			Average		Awards / Units			Average Grant
	For Grant			Outstanding			Exercise Price		Outstanding			Date Fair Value
	(Thousands)			(Thousands)					(Thousands)
Balances at July 2, 2011		3,727			3,350		$	9.38		799		$	10.15
Granted		(906	)		359			4.37		438			4.35
Granted — performance stock units		(250	)		—			—		200			4.33
Exercised or released		—			(23	)		2.65		(125	)		11.88
Cancelled or forfeited		82			(150	)		17.09		(37	)		10.01

Balances at October 1, 2011		2,653			3,536			8.93		1,275			7.13

Supplemental disclosure information about our stock options outstanding as of October 1, 2011 is as follows:


					Weighted-
			Weighted-		Average		Aggregate
			Average		Remaining		Intrinsic
	Shares		Exercise Price		Contractual Life		Value
	(Thousands)				(Years)		(Thousands)
Options exercisable at October 1, 2011		1,738	$	9.97		6.4	$	640
Options outstanding at October 1, 2011		3,536	$	8.93		7.5		972

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, based on the closing price of our common stock of $3.64 on September 30, 2011, which would have been received by the option holders had all option holders exercised their options as of that date (our closing stock price was $4.37 on November 4, 2011). There were approximately 0.6 million shares of common stock subject to in-the-money options which were exercisable as of October 1, 2011. We settle employee stock option exercises with newly issued shares of common stock.