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 1/36th 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 nine months ended September 29, 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	1,540		$	1.36
Exercised	(291	)	$	0.84
Canceled or forfeited	(3,438	)	$	4.13
Outstanding at September 29, 2013	5,425		$	2.41	4.8	$	4,104
Vested and expected to vest at September 29, 2013	4,954		$	2.50	4.6	$	3,668
Exercisable at September 29, 2013	2,107		$	4.01	2.8	$	683

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 September 27, 2013 for all in-the-money options.

The following table provides information pertaining to our stock options for the nine months ended September 29, 2013 and September 30, 2012 (in thousands, except weighted-average fair values):



	Nine Months Ended
	September 29, 2013		September 30, 2012
Weighted-average fair value of options granted	$	0.86	$	1.67
Intrinsic value of options exercised	$	273	$	203
Cash received from options exercised	$	241	$	175

Restricted Stock Units

The 2012 Plan provides for grants of time-based and performance-based restricted stock units ("RSUs"). At September 29, 2013, we only had time-based RSUs outstanding.

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 nine months ended September 29, 2013:



	Number of Shares		Weighted Average Grant Date Fair Value
	(thousands)
Outstanding at December 31, 2012	32		$	1.28
Granted	407		1.43
Released	(8	)	1.09
Canceled	(11	)	1.60
Outstanding at September 29, 2013	420		$	1.42