Adobe 2006 Annual Report Download - page 97

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97
Employee Stock Purchase Plan
Our 1997 Employee Stock Purchase Plan (the “ESPP”) allows eligible employee participants to
purchase shares of our common stock at a discount through payroll deductions. The ESPP consists of
twenty-four-month offering periods with four six-month purchase periods in each offering period.
Employees purchase shares in each purchase period at 85% of the market value of our common stock at
either the beginning of the offering period or the end of the purchase period, whichever price is lower.
As of December 1, 2006, we had reserved 76.0 million shares of our common stock for issuance under
the ESPP and approximately 20.6 million shares remain available for future issuance.
The weighted average fair values of employee stock purchase rights granted during fiscal 2006, 2005
and 2004 are as follows:
2006 2005 2004
Weighted average fair value ....
.
$ 8.09 $ 9.08 $ 6.27
The ESPP will continue until the earlier of (i) termination by the Board or (ii) the date on which all of the
shares available for issuance under the plan have been issued.
Restricted Stock
We grant restricted shares and performance awards to employees under our Amended 1994
Performance and Restricted Stock Plan (“Restricted Stock Plan”) and our 2003 Equity Incentive Plan.
These plans provide for the granting of restricted stock and/or performance awards to officers and key
employees. Restricted stock issued under these plans generally vest annually over two to three years but are
considered outstanding at the time of grant, as the stockholders are entitled to dividends and voting rights.
As of December 1, 2006, we had reserved 16.0 million shares of our common stock for issuance under the
Restricted Stock Plan and approximately 5.2 shares were available for grant.
Restricted stock activity for fiscal 2006, 2005 and 2004 are as follows:
Restricted Stock
Non-vested
Shares
Weighted
Average
Grant Date
Fair Value
November 28, 2003 ........... 443 $ 6.30
Awarded......................... 14 21.44
Released ......................... (42) 18.85
Forfeited......................... (1) 14.80
December 3, 2004.............. 414 5.51
Awarded......................... 26 30.86
Released ......................... (12) 18.39
December 2, 2005.............. 428 6.68
Awarded......................... 9 39.47
Released ......................... (302) 22.03
Forfeited......................... (48) 25.53
Due to acquisition.............. 414 22.35
December 1, 2006.............. 501 $ 9.17
Performance Shares
Effective February 2, 2006, the Executive Compensation Committee adopted the 2006 Performance
Share Program (the “Program”). The Executive Compensation Committee established the Program to align
the new leadership team to achieve key integration milestones and create stockholder value and to retain