EMPLOYEE STOCK PLANS

Stock Options

Options to purchase common stock granted under the 2012 Equity Incentive Plan (the "2012 Plan") generally have terms not exceeding seven years. Options to purchase stock under our equity incentive plans are generally granted at exercise prices that are at least 100 percent of the fair market value of our common stock on the date of grant. Generally, 25 percent of the options vest on the first anniversary of the vesting commencement date, and the remaining options vest 1/36 per month for the next 36 months thereafter.

The following table summarizes the stock option activity under all of our equity incentive plans for the three months ended March 31, 2013:



	Number of Shares		Weighted- Average Exercise Price		Weighted Average Remaining Term	Aggregated Intrinsic Value
	(thousands)				(years)	(thousands)
Outstanding at December 31, 2012	7,614		$	3.34
Granted	1,296		$	1.23
Exercised	(7	)	$	0.76
Canceled or forfeited	(1,071	)	$	2.57
Outstanding at March 31, 2013	7,832		$	3.10	4.2	$	1,255
Vested and expected to vest at March 31, 2013	7,122		$	3.26	3.9	$	1,109
Exercisable at March 31, 2013	3,921		$	4.70	2.0	$	339

The aggregate intrinsic value represents the pre-tax differences between the exercise price of stock options and the quoted market price of our stock on March 31, 2013 for all in-the-money options. There were approximately 0.7 million shares of common stock subject to in-the-money options that were exercisable as of March 31, 2013.

The following table provides information pertaining to our stock options for the three months ended March 31, 2013 and April 1, 2012 (in thousands, except weighted-average fair values):



	Three Months Ended
	March 31, 2013		April 1, 2012
Weighted-average fair value of options granted	$	0.77	$	1.78
Intrinsic value of options exercised	$	3	$	159
Cash received from options exercised	$	5	$	127

Restricted Stock Units

The 2012 Plan provides for grants of time-based and performance-based restricted stock units ("RSUs"). At March 31, 2013, we only had outstanding time-based RSUs.

Time-Based Restricted Stock Units

Generally, 25 percent of the time-based RSUs vest on each anniversary of the vesting commencement date or date of grant. On occasion, we grant time-based RSUs for varying purposes with different vesting schedules. Time-based RSUs granted under the 2012 Plan are counted against the total number of shares of common stock available for grant under the plan at 1.75 shares of common stock for every one share of common stock subject thereto.

The associated stock-based compensation expense on time-based RSUs is determined based on the fair value of our common stock on the date of grant of the RSU and recognized over the vesting period.

The following table summarizes RSU activity under all of our equity incentive plans for the three months ended March 31, 2013:



	Number of Shares	Weighted Average Grant Date Fair Value
	(thousands)
Outstanding at December 31, 2012	32	$	1.28
Granted	375	1.37
Released	—	—
Expired	—	—
Outstanding at March 31, 2013	407	$	1.36