Adaptec 2008 Annual Report Download - page 70

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Employee Share Purchase Plan: December 28,
2008
December 30,
2007
December 31,
2006
Expected life (years) ........................................ 1.3 1.3 1.3
Expected volatility .......................................... 49% 50% 50%
Risk-free interest rate ....................................... 2.1% 4.7% 4.9%
Stock Option Plans
The Company issues its common stock under the provisions of various stock option plans. Stock option
awards are granted with an exercise price equal to the closing market price of the Company’s common stock at
the grant date. 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
Plan (“1994 Plan”) were approved by stockholders. New stock options or other equity incentives may only be
issued under the 1994 Plan and the 2001 Plan. In the second quarter of 2006, the Company assumed the stock
option plans and all outstanding stock options of Passave as part of the merger consideration. (See Note. 2
Business Combinations)
Activity under the option plans during the year ended December 28, 2008 was as follows:
Number of
options
Weighted
average exercise
price
per share
Weighted
average
remaining
contractual term
(years)
Aggregate
intrinsic value
per share at
December 28,
2008
Outstanding, December 30, 2007 ............... 27,321,505 $ 9.74
Granted ................................... 5,641,520 $ 6.13
Exercised ................................. (2,038,577) $ 4.55
Forfeited .................................. (2,729,448) $10.17
Outstanding, December 28, 2008 ............... 28,195,000 $ 9.35 6.49 $0.08
Vested & Expected to Vest, December 28, 2008 . . . 26,782,245 $ 9.55 6.50 $0.09
Exercisable, December 28, 2008 ............... 18,617,862 $10.58 5.48 $0.12
No adjustment has been recorded for fully vested options that expired during the year ended December 28,
2008. A reversal of $9.1 million was recorded for pre-vesting forfeitures.
The following table summarizes information on options outstanding and exercisable for the combined
option plans at December 28, 2008:
Options Outstanding Options Exercisable
Range of Exercise Prices
Options
Outstanding
Weighted
Average
Remaining
Contractual
Life (years)
Weighted
Average
Exercise
Price per
Share
Options
Exercisable
Weighted
Average
Exercise
Price per
Share
$0.05—$5.95 ................. 4,731,555 8.18 $ 4.41 1,236,308 $ 3.08
$6.01—$6.35 ................. 5,581,546 5.54 6.09 4,434,716 6.02
$6.36—$7.87 ................. 5,792,102 7.10 7.57 4,159,979 7.66
$7.89—$10.97 ................ 7,573,834 7.50 9.71 4,302,720 10.14
$11.05—$189.94 .............. 4,515,963 3.38 20.21 4,484,139 20.29
$0.05—$189.94 ............... 28,195,000 6.49 $ 9.35 18,617,862 $10.58
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