Exhibit 10.01
May 06, 2005
Subramanian Sundaresh
Dear Sundi:
On behalf of Adaptec, Inc., I am pleased to
offer you the position of Executive Vice President, reporting to
me. I am confident that you will provide the senior
leadership that will continue to enhance our customer and
stockholder value.
Your initial base salary will be $325,000 per
year. You will also be eligible to participate in the Quarterly
Variable Incentive Plan (VIP) and the Annual Incentive Plan (AIP),
which targets a percentage of your base salary to be paid.
The VIP is based on achievement of quarterly objectives and is
targeted at 4% of your base pay. The AIP is based on Company
achievement of revenue and operating profit before taxes and is
targeted at 60% of your base salary. Actual bonus payout will
vary based on Company and individual performance.
In accordance with the Company’s Stock
Option Plan, the Compensation Committee of our Board of
Director’s approved that you be granted an option to purchase
300,000 shares of Adaptec stock. The Option shall be an
“Incentive Stock Option” to the maximum limit allowable
under the 2004 Plan and IRS regulations. Any portion of this Option
in excess of the 2004 Plan and IRS limitations shall be deemed to
be a Non-Qualified Stock Option. The exercise price of the
Option shall be the fair market value of Adaptec’s common
stock on the date of grant. The price is set at the closing
market price the day prior to your first date of employment with
Adaptec. These options will vest 20% on the one-year anniversary of
your hire date and quarterly thereafter, at 5.00% and will be fully
vested at the end of five years.
Adaptec provides a full range of company paid
benefits including a flexible program that provides employees with
“credits” to purchase coverage tailored to individual
needs. Since you are a re-hire to Adaptec you will receive service
credit for b
