EMPLOYEE STOCK PLANS

Stock Incentive Plans

On November 10, 2015, our stockholders approved an amendment to the Fifth Amended and Restated 2001 Long-Term Stock Incentive Plan (the "Plan"), adding 8.0 million shares of our common stock to the share reserve under the Plan.

As of March 26, 2016, there were 12.9 million shares of our common stock available for grant under the Plan.

We generally grant stock options that vest over a two to four year service period, and restricted stock awards and restricted stock unit awards 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 or the compensation committee of our board of directors.

Performance-Based Restricted Stock Units

In August 2014, our board of directors approved a grant of 0.5 million performance-based restricted stock units ("PSUs") to certain executive officers with an aggregate estimated grant date fair value of $0.9 million. These PSUs vest at 100 percent upon the achievement of two consecutive quarters with positive adjusted earnings before interest, taxes, depreciation and amortization ("AEBITDA") on or before the end of our fiscal year 2017. During the second quarter of fiscal year 2016, the performance condition related to these PSUs was achieved. On February 2, 2016, the compensation committee of our board of directors certified that the performance condition was achieved and the PSUs immediately vested at 100 percent.

In August 2015, our board of directors approved a grant of 0.9 million PSUs to certain executive officers with an aggregate estimated grant date fair value of $2.5 million. Subject to the achievement of positive free cash flow (defined as AEBITDA less capital expenditures) in any fiscal quarter ending prior to June 30, 2018, vesting of these PSUs is contingent upon service conditions being met through August 10, 2018. On October 29 2015, the compensation committee of our board of directors certified that this performance condition was achieved during the quarter ended September 26, 2015. As a result, these PSUs will cliff vest with respect to 33.4 percent of the underlying shares on August 10, 2016, and with respect to 8.325 percent of the underlying shares each subsequent quarter over the following two years, subject to continuous service.

Restricted Stock Units

In July 2015, our board of directors approved a retention grant of 0.9 million restricted stock units ("RSUs") to certain executive officers and 1.5 million RSUs to other employees, which vest over three years.

Stock Incentive Plan Activity

The following table summarizes the combined activity under all of our equity incentive plans for the nine months ended March 26, 2016:



	Shares Available For Grant		Stock Options / SARs Outstanding		Weighted- Average Exercise Price		Restricted Stock Awards / Units Outstanding		Weighted- Average Grant Date Fair Value
	(Thousands)		(Thousands)				(Thousands)
Balance at June 27, 2015	8,921		3,381		$	7.07	4,545		$	1.80
Increase in share reserve	8,000		—		—		—		—
Granted	(5,270	)	—		—		3,764		2.84
Exercised or released	605		(56	)	2.81		(2,789	)	2.12
Forfeited or expired	607		(220	)	10.91		(258	)	1.31
Balance at March 26, 2016	12,863		3,105		6.88		5,262		2.58

Supplemental disclosure information about our stock options and stock appreciation rights ("SARs") outstanding as of March 26, 2016 is as follows:



	Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value
	(Thousands)			(Years)	(Thousands)
Options and SARs exercisable	2,832	$	7.34	3.7	$	1,907
Options and SARs outstanding	3,105	6.88		3.9	2,797

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 $5.31 on March 24, 2016, which would have been received by the option holders had all option holders exercised their options as of that date. There were approximately 1.3 million shares of common stock subject to in-the-money options which were exercisable as of March 26, 2016. We settle employee stock option exercises with newly issued shares of common stock.