9. Employee Benefit Plans

Stock Options — On February 20, 2003, the Company adopted the 2003 Stock Incentive Plan (the “2003 Incentive Plan”) which was subsequently amended and restated. The Company has reserved 4,515,239 shares of its common stock for issuance under the 2003 Incentive Plan. The 2003 Incentive Plan provides for the issuance of options and other stock-based awards. Options are generally granted at fair value at the date of grant as determined by the Board of Directors and have terms up to ten years and generally vest over four years.

The stockholders of the Company approved amendments to the Company’s 2003 Stock Incentive Plan, which included an increase in shares available for issuance by 1,500,000, 3,100,000 and 2,700,000 common shares which are more fully described in the Company’s definitive proxy statements filed on April 23, 2010, May 27, 2013 and May 21, 2017, respectively. At December 29, 2017, 2,199,977 shares were available for future grants under the 2003 Incentive Plan.

Option activity under the 2003 Incentive Plan is as follows:

							Weighted
				Weighted			Average		Aggregate
				Average			Remaining		Intrinsic
				Exercise			Contractual		Value
	Shares			Price			Life		(in thousands)
Outstanding, December 26, 2014		853,551		$	8.87			1.35	$	1,798
Exercised		(339,303	)
Cancelled		(198,600	)
Outstanding, December 25, 2015		315,648		$	10.02			2.06	$	216
Exercised		(101,700	)		3.91
Cancelled		(77,489	)			12.54
Outstanding, December 30, 2016		136,459		$	13.15			0.57	$	135
Exercised		(113,362	)		13.96
Cancelled		(13,825	)			14.56
Outstanding, December 29, 2017		9,272		$	1.17			1.24	$	203
Options exercisable and expected to vest, December 29, 2017		9,272		$	1.17			1.24	$	203

The following table summarizes information with respect to options outstanding and exercisable at December 30, 2016:

Weighted

Average

Weighted

Remaining

Average

Exercise

Range of Exercise Price

Outstanding

Life (Years)

Price

Exercisable

Price

1.17

9,272

1.24

1.17

9,272

1.17

For the fiscal years 2017, 2016 and 2015, the intrinsic value of the Company’s exercised stock options was $0.2 million, $0.1 million and $0.2 million respectively. There was no stock-based compensation expense for fiscal year 2017, 2016 and 2015 attributable to stock options as all outstanding options were fully vested at the beginning of the 2014 fiscal year.

Restricted Stock Units and Restricted Stock Awards — In fiscal years 2017, 2016 and 2015, the Company granted 45,000, 52,000 and 56,000 shares, respectively, of common stock to its board members under the 2003 Incentive Plan. These Restricted Share Awards (RSAs) vest on the earlier of 1) the next Annual Shareholder Meeting, or 2) 365 days from date of grant. The total unamortized expense of the Company’s unvested RSAs as of December 29, 2017, is approximately $0.4 million. During the first quarter of fiscal year 2008, the Company began granting stock awards in the forms of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) to its employees as part of the Company’s long term equity compensation plan. These stock awards are granted to employees with a unit purchase price of zero dollars and typically vest over three years, subject to the employee’s continued service with the Company and, in the case of PSUs, subject to achieving certain performance goals. The expected cost of the grant is recognized over the service period, and is reduced for estimated forfeitures and, in the case of PSUs, is reduced based on estimated achievement of performance goals. During the year ended December 29, 2017, the Company approved and granted 580,432 RSU’s to employees with a weighted average grant date fair value of $21.82 per share and 127,248 PSUs with a weighted average grant date fair value of $19.87 per share. As of December 29, 2017, $12.0 million of unrecognized stock-based compensation cost, net of estimated forfeitures, related to RSUs remains to be amortized and is expected to be recognized over an estimated period of 1.6 years. The unvested amount is subject to forfeiture, until fully vested. At December 29, 2017, 1,676,312 shares were subject to forfeiture.

The following table summarizes the Company’s restricted stock unit and restricted stock award activity through the year ended December 29, 2017 :

				Aggregate
				Intrinsic
	Number of			Value
	Shares			(in thousands)
Unvested restricted stock units and restricted stock awards at December 25, 2015		1,267,942		$	6,563
Granted		1,432,860
Vested		(675,591	)
Forfeited		(267,704	)
Unvested restricted stock units and restricted stock awards at December 30, 2016		1,757,507		$	16,466
Granted		760,180
Vested		(759,378	)
Forfeited		(81,997	)
Unvested restricted stock units and restricted stock awards at December 29, 2017		1,676,312		$	38,706
Vested and expected to vest restricted stock units and restricted stock awards		1,457,129		$	33,645

Employee Stock Purchase Plan — In 2004 the Company adopted an Employee Stock Purchase Plan (“ESPP”) and is authorized to issue 555,343 shares of common stock under the ESPP. The ESPP permits employees to purchase common stock at a discount through payroll withholdings at certain specified dates (purchase period) within a defined offering period. The purchase price is 95% of the fair market value of the common stock at the end of the purchase period and is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. There were 10,700 shares issued under the ESPP during the year ended December 29, 2017.

Employee Savings and Retirement Plan — The Company sponsors a 401(k) savings and retirement plan (the “401(k) Plan”) for all employees who meet certain eligibility requirements. Participants could elect to contribute to the 401(k) Plan, on a pre-tax basis, up to 25% of their salary to a maximum of $18,000. The Company may make matching contributions of up to 3% of employee contributions based upon eligibility. The Company made approximately $1.2 million, $1.1 million, and $1.0 million discretionary employer contributions to the 401(k) Plan in the years ended December 29, 2017, December 30, 2016 and December 25, 2015, respectively.