Adaptec 2004 Annual Report Download - page 75

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acquirer) may exercise their rights and receive $650 worth of our common stock in exchange for $325 per right, or the Company may,
at the Company’s option, issue one share of common stock in exchange for each right, or the Company may redeem the rights for
$0.001 per right.
NOTE 12. Employee Benefit Plans
Employee Stock Purchase Plan. In 1991, the Company adopted an Employee Stock Purchase Plan (“PMC ESPP”) under Section 423
of the Internal Revenue Code. Under the PMC ESPP, the number of shares authorized to be available for issuance under the plan are
increased automatically on January 1 of each year until the expiration of the plan. The increase will be limited to the lesser of (i) 1%
of the outstanding shares on January 1 of each year, (ii) 2,000,000 shares (after adjusting for stock dividends), or (iii) an amount to be
determined by the Board of Directors.
During 2004, 2003, and 2002, there were 1,579,156 shares, 1,628,684 shares, and 610,331 shares, respectively, issued under the Plan
at weighted−average prices of $4.70, $4.63, and $11.73 per share, respectively. During 2004, an additional 1,743,383 shares became
available under the PMC ESPP (2003 – 1,674,418). As of December 31, 2004, 6,044,246 shares were available for future issuance
under the PMC ESPP (2003 – 5,880,019).
Stock Option Plans. The Company issues its Common Stock under the provisions of various stock option plans. The options
generally expire within five to ten years and vest over four years.
In 2001, the company simplified its plan structure. The 2001 Stock Option Plan (the “2001 Plan”) was created to replace a number of
stock option plans the Company had assumed in connection with mergers and acquisitions completed prior to 2001. The number of
shares available for issuance under the 1994 Incentive Stock Pan (‘1994 Plan”) were approved by stockholders. New stock options or
other equity incentives may only be issued under the Company’s (“1994 Plan”) and its 2001 Stock Option Plan (“the 2001 Plan”).
Option activity under the option plans was as follows:
69