Adaptec 2006 Annual Report Download - page 173

“Option” means a Option granted pursuant to the terms and conditions of the Plan and the Appendix.
“Required Holding Period” means the requisite period prescribed by the ITO and the Rules, or such other period as may be required by the ITA,
with respect to 102 Trustee Grants, during which Options or Shares granted by the Company must be held by the Trustee for the benefit of the person to whom it
was granted. Currently, the Required Holding Period for 102 Capital Gains Track Grants is 24 months from the date of grant of the Options.
“Rules” means the Income Tax Rules (Tax benefits in Stock Issuance to Employees) 5763-2003.
“Section 102” shall mean the provisions of Section 102 of the ITO, as amended from time to time, including by the Law Amending the Income Tax
Ordinance (Number 132), 2002, effective as of January 1, 2003 and by the Law Amending the Income Tax Ordinance (Number 147), 2005.
“Trustee” means a person or entity designated by the Board to serve as a trustee and approved by the ITA in accordance with the provisions of
Section 102(a) of the ITO.
3. Types of Awards and Section 102 Election
3.1 102 Trustee Grants whether made as grants of Options or Stock Purchase Rights, shall be made pursuant to either (a) Section 102(b)(2) of the
ITO as 102 Capial Gains Track Grants or (b) Section 102(b)(1) of the ITO as 102 Ordinary Income Track Grants. The Company’s Election regarding the type of
102 Trustee Grant it chooses to make shall be filed with the ITA. Once the Company has filed such Election, it may change the type of 102 Trustee Grant that it
chooses to make only after the passage of at least 12 months from the end of the calendar year in which the first grant was made in accordance with the previous
Election, in accordance with Section 102. For the avoidance of doubt, such Election shall not prevent the Company from granting Non-Trustee Grants to Eligible
102 Optionees at any time.
3.2 Eligible 102 Optionees may receive only 102 Trustee Grants or Non-Trustee Grants under this Appendix. Optionees who are not Eligible 102
Optionees may be granted only 3(i) Options under this Appendix.
3.3 No 102 Trustee Grants may be made effective pursuant to this Appendix until 30 days after the requisite filings required by the ITO and the
Rules have been made with the ITA.
3.4 The Option Agreement, Restricted Stock Purchase Agreement or other documents evidencing the Options granted or Shares issued pursuant to
the Plan and this Appendix shall indicate whether the grant is a 102 Trustee Grant, a Non-Trustee Grant or a 3(i) Grant; and, if the grant is a 102 Trustee Grant,
whether it is a 102 Capital Gains Track Grant or a 102 Ordinary Income Track Grant.
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Source: PMC SIERRA INC, 10-K, March 01, 2007 Powered by Morningstar® Document Research℠