Seagate 2008 Annual Report Download - page 116

Table of Contents
SEAGATE TECHNOLOGY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
10. Compensation (Continued)
maintain the Company's competitive ability to attract, retain and motivate participants for the benefit of the Company and its shareholders.
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 employees generally vest as follows: 25% of the shares on the first anniversary of the vesting
commencement date and the remaining 75% proportionately each month over the next 36 months. 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 July 3, 2009, there were approximately 2.5 million 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, including 10 million authorized for issuance of share awards. Options
granted to employees generally vest as follows: 25% of the shares on the first anniversary of the vesting commencement date and the remaining
75% proportionately each month over the next 36 months. Share awards granted to employees generally vest 25% annually. As of July 3, 2009,
there were approximately 10.7 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. As of July 3, 2009, approximately 1.1 million of these assumed options were outstanding. 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. Of these nonvested shares, approximately 0.1 million shares have been canceled and the remaining shares are
fully vested. The assumed options and nonvested shares exchanged retained all applicable terms and vesting periods.
Stock Purchase Plan —The Company established an Employee Stock Purchase Plan (the "ESPP") in December 2002. As of July 3, 2009,
there were 30 million shares authorized to be issued under the ESPP. In no event shall the total number of shares issued under the ESPP exceed
75 million shares. The ESPP consists of a six-month offering period with a maximum issuance of 2.5 million shares per offering period. The
ESPP permits eligible employees who have completed 20 days of employment prior to the commencement of any offering period to purchase
common shares through payroll deductions generally at 85% of the fair market value of the common shares. On January 30, 2009, the Company
issued approximately 2.5 million common shares under its ESPP, with a weighted-average purchase price of $3.22. On July 31, 2008, the
Company issued approximately 2.5 million common shares under its ESPP, with a weighted-average purchase price of $12.72. As of July 3,
2009, there were approximately 4 million common shares available for issuance under the ESPP.
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