Panera Bread 2009 Annual Report Download - page 84

The weighted average fair value of option awards granted and assumptions used for the Black-Scholes option
pricing model were as follows for the periods indicated:
December 29,
2009
December 30,
2008
December 25,
2007
For the Fiscal Year Ended
Fair value per option awards ..................... $21.70 $15.54 $15.69
Assumptions:
Expected term (years) ........................ 5.0 4.5 5.0
Expected volatility ........................... 41.8% 36.5% 30.0%
Risk-freeinterestrate......................... 2.4% 2.5% 4.7%
Dividend yield .............................. 0.0% 0.0% 0.0%
1992 Equity Incentive Plan
The Company adopted the 1992 Plan in May 1992. A total of 8,600,000 shares of Class A common stock were
authorized for issuance under the 1992 Plan as awards, which could have been in the form of stock options (both
qualified and non-qualified), stock appreciation rights, performance shares, restricted stock, or stock units, to
employees and consultants. As a result of stockholder approval of the 2006 Plan, effective as of May 25, 2006, the
Company will grant no further stock options, restricted stock or other awards under the 1992 Plan.
2001 Employee, Director, and Consultant Stock Option Plan
The Company adopted the 2001 Plan in June 2001. A total of 3,000,000 shares of Class A common stock were
authorized for issuance under the 2001 Plan as awards, which could have been in the form of stock options to
employees, directors, and consultants. As a result of stockholder approval of the 2006 Plan, effective as of May 25,
2006, the Company will grant no further stock options under the 2001 Plan.
Employee Stock Purchase Plan
The Company maintains an Employee Stock Purchase Plan (“ESPP”) which was authorized to issue
825,000 shares of Class A common stock. The ESPP gives eligible employees the option to purchase Class A
common stock (total purchases in a year may not exceed 10 percent of an employee’s current year compensation) at
85 percent of the fair market value of the Class A common stock at the end of each calendar quarter. There were
approximately 36,000, 44,000 and 42,000 shares purchased with a weighted average fair value of purchase rights of
$7.95, $6.41 and $7.42 during fiscal 2009, fiscal 2008 and fiscal 2007, respectively. For fiscal 2009, fiscal 2008 and
fiscal 2007, the Company recognized expense of approximately $0.3 million in each of the respective years related
to stock purchase plan discounts. Cumulatively, there were approximately 790,000 shares issued under this plan as
of December 29, 2009, 754,000 shares issued under this plan as of December 30, 2008, and approximately
710,000 shares issued under this plan as of December 25, 2007.
18. Defined Contribution Benefit Plan
The Panera Bread Company 401(k) Savings Plan (the “Plan”) was formed under Section 401(k) of the Internal
Revenue Code (“the Code”). The Plan covers substantially all employees who meet certain service requirements.
Participating employees may elect to defer a percentage of his or her salary on a pre-tax basis, subject to the
limitations imposed by the Plan and the Code. The Plan provides for a matching contribution by the Company equal
to 50 percent of the first 3 percent of the participant’s eligible pay. All employee contributions vest immediately.
Company matching contributions vest beginning in the second year of employment at 25 percent per year, and are
fully vested after 5 years. The Company contributed $1.3 million, $1.1 million, and $0.9 million to the Plan in fiscal
2009, fiscal 2008, and fiscal 2007, respectively.
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PANERA BREAD COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)