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. In December 2013, our Board of Directors approved the adoption of monthly vesting of stock options for employees with a minimum of one year of service.

In October 2012, our Board of Directors approved a special stock option retention grant to all existing employees. The 1.7 million shares retention grant vested in its entirety 15 months after the vesting commencement date on January 31, 2014.

The following table summarizes the stock option activity under all of our equity incentive plans for the three months ended March 30, 2014:



	Number of Shares		Weighted- Average Exercise Price		Weighted Average Remaining Term	Aggregated Intrinsic Value
	(thousands)		(per share)		(years)	(thousands)
Outstanding at December 31, 2013	4,993		$	2.18
Granted	451		$	2.51
Exercised	(94	)	$	0.98
Canceled or forfeited	(154	)	$	8.27
Outstanding at March 30, 2014	5,196		$	2.05	4.9	$	3,526
Vested and expected to vest at March 30, 2014	4,741		$	2.07	4.8	$	3,276
Exercisable at March 30, 2014	3,061		$	2.20	4.2	$	2,324

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 28, 2014 for all in-the-money options.

The following table provides information pertaining to our stock options for the three months ended March 30, 2014 and March 31, 2013 (in thousands, except weighted-average fair values):



	Three Months Ended
	March 30, 2014		March 31, 2013
Weighted-average fair value of options granted	$	1.29	$	0.77
Intrinsic value of options exercised	$	153	$	3
Cash received from options exercised	$	92	$	5

Restricted Stock Units

The 2012 Plan provides for grants of time-based and performance-based restricted stock units ("RSUs"). At March 30, 2014, we only had time-based RSUs outstanding.

Time-Based Restricted Stock Units

Historically, 25 percent of the time-based RSUs vest on each anniversary of the vesting commencement date or date of grant. In December 2013, our Board of Directors approved a quarterly vesting schedule for RSUs. 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 2012 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 30, 2014:



	Number of Shares		Weighted Average Grant Date Fair Value
	(thousands)		(per share)
Outstanding at December 31, 2013	429		$	1.45
Granted	565		$	2.49
Released	(94	)	$	1.38
Forfeited or Expired	—		$	—
Outstanding at March 30, 2014	900		$	2.11