SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2016

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

NOTE 12. SHAREHOLDERS’ EQUITY

Employee Stock Purchase Plan

In May 2004, the ESPP was approved by the shareholders. The ESPP is qualified under Section 423 of the Internal Revenue Code. The ESPP is designed to allow eligible employees to purchase shares of the Company’s common stock through periodic payroll deductions. The price of the common stock purchased under the ESPP must be equal to at least 85% of the lower of the fair market value of the common stock on the commencement date of each offering period or the specified purchase date. The number of shares authorized for issuance under the ESPP as of December 31, 2016 was 3,000,000, of which 670,618 shares were available for future issuance.

In 2016, the Company sold 201,264 shares of its common stock under the ESPP. The shares were purchased at a weighted‑average purchase price of $16.19 with proceeds of approximately $3.3 million. In 2015, the Company sold 164,674 shares of its common stock under the ESPP. The shares were purchased at a weighted‑average purchase price of $14.95 with proceeds of approximately $2.5 million.

Option Exercises

Employees exercised options to purchase 711,863 shares of the Company’s common stock with net proceeds to the Company of approximately $6.7 million during 2016. Employees exercised options to purchase 1,141,345 shares of the Company’s common stock with net proceeds to the Company of approximately $7.9 million during 2015.