Seagate 2007 Annual Report Download - page 92

Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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Continued)
Seagate Technology 2001 Share Option Plan —In December 2000, the Company’s board of directors adopted the Seagate Technology
2001 Share Option Plan (the “2001 Plan”). Under the terms of the 2001 Plan, eligible employees, directors, and consultants can be awarded
options to purchase common shares of the Company under vesting terms to be determined at the date of grant. A maximum of 100 million
common shares is issuable under the 2001 Plan. Options granted to exempt employees will generally vest as follows: 25% of the shares will vest
on the first anniversary of the vesting commencement date and the remaining 75% will vest proportionately each month over the next 36 months.
Options granted to non-exempt employees will vest on the first anniversary of the vesting commencement date. Options granted under the 2001
Plan were granted at fair market value, with options granted up through September 5, 2004 expiring ten years from the date of grant and options
granted subsequent to September 5, 2004 expiring seven years from the date of grant. As of June 27, 2008, there were approximately
84,000 shares available for issuance under the 2001 Plan.
Seagate Technology 2004 Stock Compensation Plan —On August 5, 2004, the Company’s board of directors adopted the Seagate
Technology 2004 Stock Compensation Plan (the “2004 Plan”), and on October 28, 2004, the Company’
s shareholders approved the 2004 Plan. A
maximum of 63.5 million common shares is issuable under the 2004 Plan. Options granted to exempt employees will generally vest as follows:
25% of the shares will vest on the first anniversary of the vesting commencement date and the remaining 75% will vest proportionately each
month over the next 36 months. As of June 27, 2008, there were approximately 30 million shares available for issuance under the 2004 Plan.
Assumed Maxtor Stock Options —In connection with the Company’s acquisition of Maxtor, the Company assumed all outstanding options
to purchase Maxtor common stock with a weighted-average exercise price of $16.10 on an as-converted basis. Each option assumed was
converted into an option to purchase the Company’
s common shares after applying the exchange ratio of 0.37 Company common shares for each
share of Maxtor common stock. In total, the Company assumed and converted Maxtor options into options to purchase approximately 7.1 million
of the Company’s common shares. In addition, the Company assumed and converted all outstanding Maxtor nonvested stock into approximately
1.3 million of the Company’
s nonvested shares, based on the 0.37 exchange ratio. The assumed options and nonvested shares exchanged retained
all applicable terms and vesting periods. As of June 27, 2008, approximately 1.3 million of the assumed options and approximately 348,000 of
the exchanged nonvested shares were outstanding.
Maxtor Corporation 1996 Stock Plan —As a result of the acquisition of Maxtor, the Company assumed all outstanding optionsunder
Maxtor’s Amended and Restated 1996 Stock Option Plan (the “1996 Plan”). Options under the 1996 Plan generally vest over a four-year period
from the date of grant with 25% vesting at the first anniversary date of the vesting commencement date and 6.25% each quarter thereafter,
expiring ten years from the date of grant.
Maxtor Corporation 2005 Performance Incentive Plan —As a result of the acquisition of Maxtor, the Company assumed all outstanding
options and nonvested stock under Maxtor’s 2005 Performance Incentive Plan (the “2005 Plan”). Options granted under the 2005 Plan generally
vest over a four-year period with 25% vesting at the first anniversary date of the vesting commencement date and 6.25% each quarter thereafter,
expiring ten years from the date of grant. Nonvested shares generally vest over a three-year period from the date of grant with 1/3 vesting at the
first anniversary date of the vesting commencement date and 1/3 each year thereafter, and are subject to forfeiture if employment is terminated
prior to the time the shares become fully vested and non-forfeitable.
Maxtor (Quantum HDD) Merger Plan —As a result of the acquisition of Maxtor, the Company assumed all outstanding options under
Maxtor’s (Quantum HDD) Merger Plan. Options granted under this plan were completely vested and exercisable as of June 30, 2006.
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