Adaptec 2011 Annual Report Download - page 64

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Table of Contents
The fair values of the Company's stock option and Employee Stock Purchase Plan, awards were estimated using the following weighted average
assumptions:
Stock Options:
December 31,
2011
December 26,
2010
December 27,
2009
Expected life (years) 4.5 4.4 4.4
Expected volatility 43% 53% 66%
Risk-free interest rate 1.9% 2.1% 1.8%
Employee Share Purchase Plan:
December 31,
2011
December 26,
2010
December 27,
2009
Expected life (years) 0.5 0.6 1.3
Expected volatility 44% 44% 59%
Risk-free interest rate 0.1% 0.2% 0.7%
Stock Option Plans
The Company issues its common stock under the provisions of the 2008 Equity Plan (the "2008 Plan"). 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 10 years and vest over
four years.
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 RSUs subsequently expire or are
forfeited, respectively, prior to issuance of the related shares that number of shares of common stock 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 2010, the Company
assumed the stock option plans and all outstanding stock options of Wintegra subject to a conversion formula, and were part of the merger consideration in
that business combination.
Activity under the option plans during the year ended December 31, 2011 was as follows:
Number of
options
Weighted
average
exercise
price per share
Weighted
average remaining
contractual term
(years)
Aggregate
intrinsic value
at December 31,
2011
Outstanding, December 26, 2010 28,120,086 $ 8.40
Granted 5,605,991 $ 7.15
Exercised (1,269,918) $ 5.33
Forfeited (3,325,761) $ 11.19
Outstanding, December 31, 2011 29,130,398 $ 7.97 6.21 $ 4,856,119
Vested & expected to vest, December 31, 2011 27,926,603 $ 8.00 6.09 $ 4,844,228
Exercisable, December 31, 2011 18,974,355 $ 8.37 4.93 $ 3,341,571
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