Symantec 2008 Annual Report Download - page 178

Stock award plans
2000 Director Equity Incentive Plan
In September 2000, our stockholders approved the 2000 Director Equity Incentive Plan and reserved 50,000 shares
of common stock for issuance thereunder. In September 2004 and September 2007, stockholders increased the number of
shares of stock that may be issued by 50,000. The purpose of this plan is to provide the members of the Board of Directors
with an opportunity to receive common stock for all or a portion of the retainer payable to each director for serving as a
member. Each director may elect 50% to 100% of the retainer to be paid in the form of stock. As of March 28, 2008, a
total of 95,551 shares had been issued under this plan and 54,449 shares remained available for future issuance.
2004 Equity Incentive Plan
Under the 2004 Equity Incentive Plan, (“2004 Plan”) our Board of Directors, or a committee of the Board of
Directors, may grant incentive and nonqualified stock options, stock appreciation rights, restricted stock units, RSUs,
or restricted stock awards to employees, officers, directors, consultants, independent contractors, and advisors to us, or
to any parent, subsidiary, or affiliate of ours. The purpose of the 2004 Plan 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 equity awards of stock options and stock bonuses. Under the terms of the
2004 Plan, the exercise price of stock options may not be less than 100% of the fair market value on the date of grant.
Options generally vest over a four-year period. Options granted prior to October 2005 generally have a maximum term
of ten years and options granted thereafter generally have a maximum term of seven years.
As of March 28, 2008, we have reserved 77 million shares for issuance under the 2004 Plan. These shares include
18 million shares originally reserved for issuance under the 2004 Plan upon its adoption by our stockholders in
September 2004, 19 million shares that were transferred to the 2004 Plan from the 1996 Equity Incentive Plan, (“1996
Plan”) and 40 million shares that were approved for issuance on the amendment and restatement of the 2004 Plan at
our 2006 annual meeting of stockholders. In addition to the shares currently reserved under the 2004 Plan, any shares
reacquired by us from options outstanding under the 1996 Plan upon their expiration will also be added to the 2004
Plan reserve. As of March 28, 2008, 41 million shares remain available for future grant under the 2004 Plan.
At our 2006 annual meeting of stockholders, our stockholders approved the amendment and restatement of the 2004
Plan, which included the following key changes: 1) an increase of 40 million shares reserved for issuance under the 2004
Plan; 2) modification of the share pool available under the 2004 Plan to reflect a ratio-based pool, where the grant of each
full-value award, such as a share of restricted stock (“RSU”), decreases the pool by two shares; and 3) a change in the
form of equity grants to our non-employee directors from stock options to a fixed dollar amount of RSUs.
Assumed Vontu stock options
In connection with our acquisition of Vontu, we assumed all unexercised, outstanding options to purchase Vontu
common stock. Each unexercised, outstanding option assumed was converted into an option to purchase Symantec
common stock after applying the exchange ratio of 0.5351 shares of Symantec common stock for each share of Vontu
common stock. In total, all unexercised, outstanding Vontu options were converted into options to purchase approx-
imately 2.2 million shares of Symantec common stock. As of March 28, 2008, total unrecognized compensation cost
adjusted for estimated forfeitures related to unexercised, outstanding Vontu stock options was approximately
$11 million.
Furthermore, all shares obtained upon exercise of unvested Vontu options were converted into the right to
receive cash of $9.33 per share upon vesting. The total value of the assumed exercised, unvested Vontu options on
the date of acquisition was approximately $7 million, assuming no options are forfeited prior to vesting. As of
March 28, 2008, total unrecognized compensation cost adjusted for estimated forfeitures related to exercised,
unvested Vontu stock options was approximately $4 million.
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)