Symantec 2002 Annual Report Download - page 61

The following is a description of the material features of each of these plans:
2001 Non-QualiÑed Equity Incentive Plan
Number of Shares Subject to the Plan.
A total of 6.0 million shares of common stock are authorized and reserved for issuance under the plan. If
an outstanding stock option or award terminates or is forfeited before the option is exercised or the shares
subject to the award are issued, or if shares granted under the plan but subject to a right of repurchase by us
are forfeited or repurchased by us, those shares will again be available for grant and issuance under the plan.
As of March 31, 2002, approximately 2.7 million options were outstanding under this plan.
Eligibility for Participation.
Options may be granted to employees, oÇcers, directors, consultants, independent contractors and
advisors to us, or of any parent, subsidiary or aÇliate of Symantec as the board of directors or the
compensation committee may determine. Our employees who are not oÇcers, directors or other persons
subject to Section 16 of the Securities Exchange Act of 1934 must receive at least 50% of all shares that are
available for grant under the plan. A person may be granted more than one award under the plan.
Terms of Options.
Our compensation committee determines many of the terms and conditions of each option granted under
the plan, including the number of shares for which the option will be granted, the exercise price of the option
and the periods during which the option may be exercised. Each option is evidenced by a stock option
agreement in such form as the committee approves and is subject to the following conditions (as described in
further detail in the plan itself):
‚Vesting and Exercisability: Options and restricted shares become vested and exercisable, as applica-
ble, within such periods, or upon such events, as determined by the compensation committee in its
discretion and as set forth in the related stock option or restricted stock agreement. To date, as a matter
of practice, options under the plan have generally been subject to a four-year vesting period. Options
terminate ten years or less from the date of grant.
‚Exercise Price: The exercise price, of each option granted, may not be less than 100% of the fair
market value of the shares of common stock on the date of the grant.
‚Tax Status: All options granted under the plan are non-qualiÑed stock options.
‚Method of Exercise: The option exercise price is typically payable in cash or by check, but may also
be payable, at the discretion of the committee, in a number of other forms of consideration, including
cancellation of indebtedness, fully paid shares of Symantec common stock, delivery of a promissory
note, waiver of compensation due or accrued to an optionee for services rendered, through a ""same day
sale,'' through a ""margin commitment,'' or any combination of the foregoing.
‚Termination of Employment: Options granted under the plan generally expire three months after the
termination of the optionee's service to us or a parent or subsidiary of Symantec, except in the case of
death or disability, in which case the options generally may be exercised up to 12 months following the
date of death or termination of service. However, if the optionee is terminated for cause (i.e. for
committing an alleged criminal act or intentional tort against us), that optionee's options expire upon
termination. Options cease vesting on the date of death or termination of service.
‚Stock Splits and Similar Events: The number of shares subject to any award, the exercise price, and
the number of shares issuable under the plan, are subject to proportionate adjustment in the event of a
stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassiÑca-
tion or similar change relating to our capital structure without consideration.
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