5. Share-Based Compensation Plans

2015 Equity Incentive Plan

In April 2015, our Board of Directors approved the 2015 Equity Incentive Plan, or the 2015 Plan, and authorized for issuance thereunder (i) an additional 1,000,000 shares of common stock plus (ii) the number of shares available for issuance pursuant to the grant of future awards under our 2005 Equity Incentive Plan determined as of the effective date of the 2015 Plan; plus (iii) the number of shares underlying outstanding stock awards granted under our previous stock option plans prior to the effective date of the 2015 Plan that expire or terminate for any reason prior to exercise or settlement, are forfeited or repurchased because of the failure to meet a contingency or condition required to vest such shares, or are reacquired, withheld (or not issued) to satisfy a tax withholding obligation in connection with an award. The 2015 Plan became effective upon the approval of the plan by our stockholders on June 23, 2015. Due to the effectiveness of our 2015 Plan, no additional awards will be made under our previous stock option plans. All outstanding awards under our previous stock option plans will continue to be subject to the terms and conditions as set forth in the agreements evidencing such stock awards and the terms of the applicable plan. Stock options issued under the 2015 Plan generally vest over 4 years; vesting is generally based on service time, and have a maximum contractual term of 10 years.

2015 Non-Employee Directors’ Stock Option Plan

In April 2015, our Board of Directors adopted the 2015 Non-Employee Directors’ Stock Option Plan, or the 2015 Directors’ Plan, and authorized for issuance thereunder and (i) an additional 250,000 shares of common stock plus (ii) the number of shares available for issuance pursuant to the grant of future awards under our previous non-employee directors stock option plan determined as of the effective date of the 2015 Directors’ Plan; plus (iii) the number of shares underlying outstanding stock awards granted under the our previous non-employee directors stock option plan prior to the effective date of the 2015 Directors’ Plan that expire or terminate for any reason prior to exercise or settlement, are forfeited or repurchased because of the failure to meet a contingency or condition required to vest such shares, or are reacquired, withheld (or not issued) to satisfy a tax withholding obligation in connection with an award. The 2015 Directors’ Plan became effective upon the approval of the plan by our stockholders on June 23, 2015. Due to the effectiveness of our 2015 Directors’ Plan, no additional awards will be made under our previous non-employee directors’ stock option plan. The 2015 Directors’ Plan provides for the automatic grant of nonstatutory stock options to purchase shares of common stock to the Company’s non-employee directors, which vest over four years and have a term of 10 years.

The following table sets forth the summary of option activity under our share-based compensation plans (the 2015 Plan, the 2005 Equity Incentive Plan, the 2015 Directors’ Plan and the 2005 Non-Employee Directors’ Stock Option Plan) for the six months ended June 30, 2015:


	Outstanding Options
	Number of Shares			Weighted Average Exercise Price
Outstanding at January 1, 2015		1,978,273		$	7.10
Options granted		243,500			1.70
Options exercised		—			—
Options canceled		(441,024	)		5.80

Outstanding at June 30, 2015		1,780,749			6.68

There were no options exercised during the three and six months ended June 30, 2015. The intrinsic value of options exercised during the three and six months ended June 30, 2014 was $16,000 and $21,000, respectively.

The following table sets forth the summary of restricted stock units, or RSUs, activity under our share-based compensation plans for the six months ended June 30, 2015:


	Number Of Shares			Weighted Average Grant-Date Fair Value
Outstanding at January 1, 2015		81,050		$	4.67
Granted		—			—
Released		(21,875	)		4.67
Forfeited		(4,425	)		4.67

Outstanding at June 30, 2015		54,750		$	4.67

On January 1, 2015 and 2014 an additional 100,000 shares were authorized for issuance under the evergreen provisions of our 2005 Equity Incentive Plan. On January 1, 2015 and 2014, an additional 75,000 shares and 58,751 shares, respectively, were authorized for issuance under the evergreen provisions of the 2005 Non-Employee Directors’ Stock Option Plan.

As of June 30, 2015, 3,030,909 and 400,000 shares remained available for issuance under the 2005 Plan and the Directors’ Plan, respectively.

Employee Stock Purchase Plan

In April 2015, our Board of Directors adopted the 2015 Employee Stock Purchase Plan, or 2015 ESPP, and authorized for issuance thereunder (i) an additional 500,000 shares of our common stock plus (ii) the number of shares that remain available for issuance under our previous employee stock purchase plan after all outstanding purchase rights under our previous employee stock purchase plan are exercised. The 2015 ESPP allows eligible employee participants to purchase shares of our common stock at a discount through payroll deductions. The terms of any offering period under the 2015 ESPP will be determined by the Board. Purchases are generally made on the last trading day of each October and April. Employees may purchase shares at each purchase date at 85% of the market value of our common stock at either the beginning of the offering period or the end of the purchase period, whichever price is lower. Our 2005 Employee Stock Purchase Plan, or 2005 ESPP, will remain in effect until the conclusion of our current offering in October 2015.

Pursuant to the 2005 ESPP, an additional 75,000 shares were reserved for issuance on January 1, 2015 and 2014, respectively. We issued 18,157 shares at a weighted average price of $1.70 under the 2005 ESPP during the three and six months ended June 30, 2015 and 37,096 shares at a weighted average price of $3.63 under the 2005 ESPP during the three and six months ended June 30, 2014. At June 30, 2015, 136,249 shares were available for issuance under the 2005 ESPP. Any shares not purchased by our employees in the current offering under the 2005 ESPP will be added to the available reserve of 500,000 shares for the 2015 ESPP upon its effectiveness.