Adaptec 2009 Annual Report Download - page 70

The 2008 Plan was approved by stockholders at the 2008 Annual Meeting. The 2008 Plan became effective
on January 1, 2009 (the “Effective Date”). It is a successor to the 1994 Incentive Stock Plan (the “1994 Plan”)
and the 2001 Stock Option Plan (the “2001 Plan”). Up to 30,000,000 shares of our common stock have been
initially reserved for issuance under the 2008 Plan. The implementation of the 2008 Plan did not affect any
options or restricted stock units outstanding under the 1994 Plan or the 2001 Plan on the Effective Date. To the
extent that any of those options or restricted stock units subsequently terminate unexercised or prior to issuance
of shares thereunder, the number of shares of common stock subject to those terminated options and restricted
stock units will be added to the share reserve available for issuance under the 2008 Plan, up to an additional
15,000,000 shares. No additional shares may be issued under the 1994 Plan or the 2001 Plan. In 2006, the
Company assumed the stock option plans and all outstanding stock options of Passave, Inc. as part of the merger
consideration in that business combination.
Activity under the option plans during the year ended December 27, 2009 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 27,
2009
Outstanding, December 28, 2008 ................ 28,195,000 $ 9.35
Granted .................................... 4,214,428 $ 5.53
Exercised .................................. (3,674,976) $ 5.73
Forfeited ................................... (3,387,983) $12.66
Outstanding, December 27, 2009 ................ 25,346,469 $ 8.80 6.51 $1.61
Vested & expected to vest, December 27, 2009 .... 24,394,214 $ 8.91 6.42 $1.56
Exercisable, December 27, 2009 ................ 17,140,740 $10.12 5.56 $1.13
No adjustment has been recorded for fully vested options that expired during the year ended December 27,
2009. A reversal of $9.7 million was recorded for pre-vesting forfeitures.
The following table summarizes information on options outstanding and exercisable for the combined
option plans at December 27, 2009:
Range of Exercise Prices
Options Outstanding Options Exercisable
Options
Outstanding
Weighted
Average
Remaining
Contractual
Life (years)
Weighted
Average
Exercise
Price per
Share
Options
Exercisable
Weighted
Average
Exercise
Price per
Share
$0.05—$4.98 .............................. 5,900,429 8.37 $ 4.74 1,335,914 $ 4.16
$5.12—$6.35 .............................. 4,919,963 5.69 6.07 3,517,940 6.03
$6.36—$7.87 .............................. 4,923,886 6.20 7.58 4,287,200 7.63
$7.89—$10.97 ............................. 6,841,300 6.78 9.74 5,247,662 10.08
$11.05—$189.94 ........................... 2,760,891 3.91 22.16 2,752,024 22.19
$0.05—$189.94 ............................ 25,346,469 6.51 $ 8.80 17,140,740 $10.12
The weighted-average estimated fair values of employee stock options granted during 2009, 2008, and 2007
were $2.79, $2.90, and $3.22, per share, respectively.
Restricted Stock Units
On February 1, 2007, the Company amended its stock award plans to allow for the issuance of RSUs to
employees and directors. The first grant of RSUs occurred on May 25, 2007. The grants vest over varying terms,
to a maximum of four years from the date of grant.
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