Symantec 2009 Annual Report Download - page 154

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 (“RSAs”) to employees, officers, directors, consultants, independent con-
tractors, 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 April 3, 2009, we have reserved 131 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, 23 million shares that were transferred to the 2004 Plan from the 1996 Equity Incentive Plan,
(“1996 Plan”), 40 million and 50 million shares that were approved for issuance on the amendment and restatement
of the 2004 Plan at our 2006 and 2008 annual meeting of stockholders, respectively. 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 cancellation will also be added to the 2004 Plan reserve. As of April 3, 2009, 77 million shares remain
available for future grant under the 2004 Plan.
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 approximately 2.2 million shares of Symantec common stock. As of April 3, 2009, total unrecognized
compensation cost adjusted for estimated forfeitures related to unexercised, outstanding Vontu stock options was
approximately $4 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
April 3, 2009, total unrecognized compensation cost adjusted for estimated forfeitures related to exercised,
unvested Vontu stock options was approximately $1 million.
The assumed options retained all applicable terms and vesting periods, except for certain options that were
accelerated according to a change in control provision and will generally vest within a twelve month period from the
date of acquisition and certain other options that vested in full as of the acquisition date. In general, the assumed
options typically vest over a period of four years from the original date of grant of the option and have a maximum
term of ten years.
Assumed Altiris stock options and awards
In connection with our acquisition of Altiris, we assumed all of the outstanding options to purchase Altiris
common stock. Each option assumed was converted into an option to purchase Symantec common stock after
applying the exchange ratio of 1.9075 shares of Symantec common stock for each share of Altiris common stock. In
total, we assumed and converted Altiris options into options to purchase approximately 3 million shares of
Symantec common stock. In addition, we assumed and converted all outstanding Altiris RSUs into approximately
320,000 Symantec RSUs, based on the same exchange ratio. Furthermore, we assumed all outstanding Altiris RSAs
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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)