Symantec 2004 Annual Report Download - page 68

«66»SYMANTEC CORPORATION
1994 Patent Incentive Plan In January 1995, the Board of
Directors approved the terms of the 1994 Patent Incentive Plan
and reserved 1.6 million shares of common stock for issuance
thereunder. The purpose of this plan is to increase awareness
of the importance of patents to our business and to provide
employees with incentives to pursue patent protection for new
technologies that may be valuable to us. Our executive officers
are not eligible for awards under the 1994 Patent Incentive Plan,
and no employee is eligible to receive more than 200,000 shares
of common stock at any time during the term of the plan. As of
March 31, 2004, a total of 117,000 shares had been issued under
this plan. On March 13, 2004, the Board of Directors terminated
this plan, therefore no further shares may be issued.
STOCK OPTION PLANS
We maintain stock option plans pursuant to which an aggregate
total of 62.6 million shares of common stock have been reserved
for issuance as incentive and nonqualified stock options to
employees, officers, directors, consultants, independent contractors
and advisors to us, or of any parent, subsidiary or affiliate of
Symantec as the Board of Directors or committee may determine.
The purpose of these plans is to attract, retain and motivate eligible
persons whose present and potential contributions are important
to our success by offering them an opportunity to participate
in our future performance through awards of stock options and
stock bonuses. Under the terms of these plans, the option exercise
price may not be less than 100% of the fair market value on the
date of grant and the options have a maximum term of ten years
and generally vests over a four-year period.
2001 Non-Qualified Equity Incentive Plan In January 2001, the
Board of Directors approved the terms of the 2001 Non-Qualified
Equity Incentive Plan and reserved for issuance 12.0 million shares
for issuance thereunder. Under this plan, we grant options to
employees, officers, directors, consultants, independent contractors
and advisors to us, or of any parent, subsidiary or affiliate of
Symantec as the Board of Directors or committee may determine.
Options awarded to insiders, defined as officers, directors or
other persons subject to Section 16 of the Securities Exchange
Act of 1934, may not exceed in the aggregate fifty (50%) percent
of all shares that are available for grant under the plan and
employees of the company who are not insiders must receive at
least fifty (50%) percent of all shares that are available for grant
under the plan. The terms of this plan are similar to those of our
1996 Equity Incentive Plan, except that it was adopted, and may
be amended, without stockholder approval. As of March 31, 2004,
2.0 million options were outstanding under this plan and 7.6 million
remained available for future issuance.
1999 Acquisition Plan In July 1999, the Board of Directors
approved the terms of the 1999 Acquisition Plan and reserved
2.0 million shares of common stock for issuance thereunder.
Options awarded to officers may not exceed in the aggregate
thirty (30%) percent of all shares that are available for grant
under the plan. The terms of this plan are similar to those of our
1996 Equity Incentive Plan, except that it was adopted, and may
be amended, without stockholder approval. As of March 31, 2004,
108,000 options were outstanding under this plan and none remain
available for future issuance.
1996 Equity Incentive Plan In May 1996, our stockholders
approved the 1996 Equity Incentive Plan and reserved 16.3 million
shares of common stock for issuance thereunder. Subsequently,
our stockholders approved a number of amendments that
increased the number of shares of common stock reserved for
issuance under the plan to a total of 97.8 million shares. As
of March 31, 2004, 36.2 million options were outstanding under
this plan and 15.3 million remained available for future issuance.
Executive Stock Option Grants In accordance with the employment
agreement dated April 11, 1999 between our current CEO and
Symantec, the Board of Directors approved the issuance of a
non-qualified stock option to acquire 800,000 shares of common
stock to the CEO. The option was granted at 100% of the fair
market value on the date of grant, has a term life of ten years
and vests over a five-year period. As of March 31, 2004, 610,000
options were outstanding.
On December 20, 1999 a non-qualified option to acquire 80,000
shares was approved for grant to the CEO and was deemed
granted on January 1, 2000. The option was granted at 100%
of the fair market value on the date of grant, has a term life of
ten years and vests over a four-year period. As of March 31, 2004,
all options were still outstanding under this plan.
1988 Employee Stock Option Plan The 1988 Employee Stock
Option Plan was superseded by the 1996 Equity Incentive Plan.
As of March 31, 2004, 114,000 options were outstanding under
the 1998 Employee Stock Option Plan and no further option may
be granted.
Acquired Stock Option Plans We assumed stock option plans
in connection with our acquisitions of AXENT Technologies in
December 2000, Delrina Corporation in May 1996, and Central
Point Software in June 1994. As of March 31, 2004, 652,000
options were outstanding under these plans and no further
options may be granted.
2004 Annual Report