Dish Network 2005 Annual Report Download - page 121

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–36
Cash Dividend
During 2004, we paid a one-time cash dividend of $1.00 per share, or $455.7 million, on outstanding shares of our
Class A and Class B common stock.
8. Employee Benefit Plans
Employee Stock Purchase Plan
During 1997, the Board of Directors and stockholders approved an employee stock purchase plan (the “ESPP”),
effective beginning October 1, 1997. During 2006, this plan was amended for the purpose of registering an
additional 1,000,000 shares of Class A common stock and was approved by the stockholders at our Annual Meeting
held on May 11, 2006 by the requisite vote of stockholders. Under the ESPP, we are now authorized to issue a total
of 1,800,000 shares of Class A common stock. Substantially all full-time employees who have been employed by us
for at least one calendar quarter are eligible to participate in the ESPP. Employee stock purchases are made through
payroll deductions. Under the terms of the ESPP, employees may not deduct an amount which would permit such
employee to purchase our capital stock under all of our stock purchase plans at a rate which would exceed $25,000
in fair value of capital stock in any one year. The purchase price of the stock is 85% of the closing price of the Class
A common stock on the last business day of each calendar quarter in which such shares of Class A common stock are
deemed sold to an employee under the ESPP. The ESPP shall terminate upon the first to occur of (i) October 1,
2007 or (ii) the date on which the ESPP is terminated by the Board of Directors. During 2006, 2005 and 2004
employees purchased approximately 89,000, 97,000, and 78,000 shares of Class A common stock through the ESPP,
respectively.
401(k) Employee Savings Plan
We sponsor a 401(k) Employee Savings Plan (the “401(k) Plan”) for eligible employees. Voluntary employee
contributions to the 401(k) Plan may be matched 50% by us, subject to a maximum annual contribution of $1,000
per employee. Forfeitures of unvested participant balances which are retained by the 401(k) Plan may be used to
fund matching and discretionary contributions. Expense recognized related to matching 401(k) contributions, net of
forfeitures, totaled $2.1 million and $0.2 million during the years ended December 31, 2006 and 2005, respectively.
We did not recognize any expense related to matching 401(k) contributions during the year ended December 31,
2004, as 401(k) Plan forfeitures were sufficient to fund all of the Company matching contributions.
We also may make an annual discretionary contribution to the plan with approval by our Board of Directors, subject
to the maximum deductible limit provided by the Internal Revenue Code of 1986, as amended. These contributions
may be made in cash or in our stock. Discretionary stock contributions, net of forfeitures, were $17.8 million, $15.4
million and $12.8 million relating to the 401(k) Plan years ended December 31, 2006, 2005 and 2004, respectively.