Kodiak Sciences Inc. Notes to Consolidated Financial Statements (in thousands, except share and per share data) 123 10. Common Stock As of December 31, 2018 and 2017, the Company’s certificate of incorporation, as amended and restated, authorized the Company to issue 490,000,000 and 28,500,000 shares of common stock at the par value of $0.0001 per share. Each share of common stock is entitled to one vote. The board of directors may declare and pay dividends to holders of common stock. The Company has never declared or paid any dividends on common stock. The Company had reserved common stock for future issuances as follows: December 31, 2018 December 31, 2017 Exercise of options outstanding ................................................................................... 5,135,267 1,204,414 Exercise of common stock warrants outstanding......................................................... 400,000 — Issuance of common stock under the 2018 Equity Incentive Plan............................... 3,024,404 — Issuance of common stock under the 2018 Employee Share Purchase Plan ............... 460,000 — Issuance of common stock under the 2015 Equity Incentive Plan............................... — 605,557 Conversion of redeemable convertible preferred stock................................................ — 12,385,154 Conversion of convertible notes outstanding............................................................... — 2,153,781 Exercise of preferred stock warrants outstanding ........................................................ — 500,000 Total ............................................................................................................................. 9,019,671 16,848,906 11. Stock-Based Compensation 2018 Equity Incentive Plan In August 2018, the Company adopted the 2018 Equity Incentive Plan (“2018 Plan”), which became effective on the business day prior to the effectiveness of the registration statement relating to the IPO. The 2018 Plan initially reserved 4,300,000 shares of common stock for the issuance of incentive stock options ("ISOs"), nonstatutory stock options, restricted stock, restricted stock units (“RSUs”), stock appreciation rights, performance units and performance shares to employees, directors and consultants of the Company. The number of shares available for issuance will increase annually on the first day of each fiscal year beginning in 2019 equal to the least of (1) 4,300,000 shares, and (2) 4% of outstanding shares of common stock as of the last day of the immediately preceding year, and (3) such other amount as determined by the board of directors. The exercise price of options must be equal to at least the fair market value of the common stock on the grant date. For ISOs, the term may not exceed ten years, except in respect to any participant with more than 10% of voting power of all classes or stock, then the term may not exceed five years and the exercise price must be equal to at least 110% of the fair market value of the common stock on the grant date. Options granted generally vest over four years. The 2015 Equity Incentive Plan was terminated in connection with the adoption of the 2018 Plan and the 63,359 shares that were then unissued and available for future award under the 2015 Equity Incentive Plan became available under the 2018 Plan. The awards outstanding under the 2015 Equity Incentive Plan continue to be governed by their existing terms. As of December 31, 2018, there were 3,024,404 shares available for grant under the 2018 Plan. 2015 Equity Incentive Plan In September 2015, the Company adopted the 2015 Equity Incentive Plan (“2015 Plan”) under which 2,810,513 shares of common stock were reserved for issuance through grants of incentive stock options, nonqualified stock options and restricted stock awards (“RSAs”) to employees, directors and consultants of the Company. During 2018, the board of directors approved an increase of 2,125,000 shares to the common stock reserved under the 2015 Plan. The awards outstanding under the previously terminated 2009 Share Incentive Plan continue to be governed by their existing terms.