10. Equity Award Plans

In April 2006, the Company’s Board of Directors adopted and the stockholders approved the 2006 Stock Option Plan (“2006 Plan”). The 2006 Plan provides for the grant of incentive stock options under the federal tax laws and non-statutory stock options. Only employees may receive incentive stock options, but non-statutory stock options may be granted to employees, non-employee directors and consultants. The stock options are exercisable at a price equal to the market value of the underlying shares of common stock on the date of the grant as determined by the Company’s board of directors. The term of options granted under the 2006 Plan may not exceed ten years. Certain options are eligible for exercise prior to vesting. Exercised but unvested shares of common stock are subject to repurchase by the Company at the initial exercise price. The proceeds from the shares of common stock subject to repurchase are classified as a liability and reclassified to equity as the shares vest. Under the 2006 Plan’s early exercise feature, the Company had the right to repurchase 3 and 18 shares of common stock as of December 31, 2016 and 2015, respectively. The Company records cash received from the exercise of unvested stock options as a long-term liability, as well as the fair value of vested outstanding options to non-employee consultants. As of December 31, 2016 and 2015, $41 and $249, respectively, has been recorded as a long-term liability on the accompanying consolidated balance sheets.

In February 2013, the Company’s Board of Directors and stockholders approved the 2013 Equity Incentive Plan (“2013 Plan”), under which 4,500 shares of common stock were originally reserved for issuance. Additionally, all reserved and unissued shares under the 2006 Plan at the time the 2013 Plan became effective are eligible for issuance under the 2013 Plan. The 2013 Plan became effective on March 21, 2013, at which time the Company ceased to grant equity awards under the 2006 Plan. The 2013 Equity Incentive Plan authorizes the award of stock options, restricted stock awards, stock appreciation rights, RSUs, performance awards and stock bonuses to the Company’s employees, directors, consultants, independent contractors and advisors. On January 1 of each of the first 10 calendar years through 2023, the number of shares of common stock reserved under the 2013 Equity Incentive Plan will automatically increase by an amount equal to 5% of the total outstanding shares as of immediately preceding December 31, or such lesser number of shares as determined by the Company’s Board of Directors. Pursuant to the terms of the 2013 Plan, the shares available for issuance increased by approximately 1,940 shares of common stock on January 1, 2017.

Stock Options

Under the 2006 Plan and the 2013 Plan, the term of options granted may not exceed ten years. Unless the terms of an optionee’s stock option agreement provide otherwise, if an optionee’s service relationship with the Company, or any of its affiliates, ceases for any reason other than disability or death, the optionee may exercise the vested portion of any options for three months after the date of such termination. If an optionee’s service relationship with the Company, or any of its affiliates, ceases due to disability or death (or an optionee dies within a certain period following cessation of service), the optionee or a beneficiary may exercise any vested options for a period of 12 months. In no event, however, may an option be exercised beyond the expiration of its term.

A summary of activity under the 2006 Plan and the 2013 Plan is as follows (in thousands, except per share amounts and years):

	Options Outstanding
	Number of Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in Years)		Aggregate Intrinsic Value
Balance at December 31, 2013		4,855		$	6.56		7.85	$	20,593
Options granted		3,558			9.39		8.35
Options exercised		(791	)		3.12		—
Options forfeited and cancelled		(1,246	)		9.51		—
Balance at December 31, 2014		6,376		$	7.99		7.82	$	9,697
Options granted		2,303			5.85		7.70
Options exercised		(727	)		1.98		—
Options forfeited and cancelled		(1,992	)		8.92		—
Balance at December 31, 2015		5,960		$	7.58		7.85	$	957
Options granted		1,202			2.66		6.82
Options exercised		(264	)		1.48		—
Options forfeited and cancelled		(3,149	)		7.79		—
Balance at December 31, 2016		3,749		$	6.26		7.48	$	194
Options exercisable as of December 31, 2016		2,178		$	7.70		6.49	$	110
Options vested as of December 31, 2016		2,174		$	7.69		6.49	$	110
Options vested and expected to vest as of December 31, 2016		3,636		$	6.33		7.44	$	192

The intrinsic value of options exercised during 2016, 2015 and 2014 was $328, $2,935, and $5,615, respectively. The total estimated fair value of options vested during 2016, 2015 and 2014 was $5,424, $7,573, and $5,447, respectively.

RSUs

A summary of RSUs granted and unvested under the 2013 Plan during 2016 and 2015 is as follows (in thousands, except per unit amounts):

	RSUs Outstanding
	Number of Shares			Weighted Average Grant Date Fair Value Per Unit
Granted and unvested at December 31, 2013		—		$	—
RSUs granted		777			9.37
RSUs vested		—			—
RSUs cancelled		(8	)		10.56
Granted and unvested at December 31, 2014		769		$	9.36
RSUs granted		1,185			5.68
RSUs vested		(143	)		9.83
RSUs cancelled and withheld to cover taxes		(590	)		7.79
Granted and unvested at December 31, 2015		1,221		$	9.36
RSUs granted		3,123			2.68
RSUs vested, net		(209	)		7.19
RSUs cancelled and withheld to cover taxes		(1,132	)		4.40
Granted and unvested at December 31, 2016		3,003		$	3.07

Employee Stock Purchase Plan

In February 2013, the Company’s Board of Directors and stockholders approved the 2013 Employee Stock Purchase Plan (“2013 ESPP”), under which 1,000 shares of common stock were originally reserved for issuance. The 2013 ESPP became effective on March 22, 2013. The 2013 ESPP provides generally for six-month purchase periods and the purchase price for shares of common stock purchased under the 2013 Employee Stock Purchase Plan will be 85% of the lesser of the fair market value of the common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of each purchase period in the applicable offering period. On January 1 of each of the first 10 calendar years following the first offering date, the number of shares reserved under the 2013 Employee Stock Purchase Plan will automatically increase by an amount equal to 1% of the total outstanding shares as of immediately preceding December 31, but not to exceed 700 shares. Pursuant to the terms of the 2013 ESPP, the shares available for issuance increased by approximately 388 shares on January 1, 2017. During 2016 and 2015, 292 and 257 shares, respectively, were issued under the 2013 ESPP.