Dish Network 2010 Annual Report Download - page 121

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-36
12. Employee Benefit Plans
Employee Stock Purchase Plan
Our employees participate in the DISH Network employee stock purchase plan (the “ESPP”), in which we
are authorized to issue 1.8 million shares of Class A common stock. At December 31, 2010, we had 0.5
million shares of Class A common stock which remain available for issuance under this plan. 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. During the years ended December 31, 2010, 2009
and 2008, employee purchases of Class A common stock through the ESPP totaled approximately 0.1
million, 0.2 million and 0.1 million shares, 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 $1,500 per employee. Forfeitures of unvested participant balances which are retained by
the 401(k) Plan may be used to fund matching and discretionary 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.
The following table summarizes the expense associated with our matching contributions and discretionary
contributions:
Expense Recognized Related to the 401(k) Plan 2010 2009 2008
Matching contributions, net of forfeitures....................... $ 1,598 $ 6,116 $ 4,641
Discretionary stock contributions, net of forfeitures....... $ 24,954 $ 29,004 $ 12,436
(In thousands)
For the Years Ended December 31,
13. Stock-Based Compensation
Stock Incentive Plans
We maintain stock incentive plans to attract and retain officers, directors and key employees. Stock
awards under these plans include both performance and non-performance based stock incentives. As of
December 31, 2010, we had outstanding under these plans stock options to acquire 21.9 million shares of
our Class A common stock and 1.6 million restricted stock units. Stock options granted prior to and on
December 31, 2010 were granted with exercise prices equal to or greater than the market value of our Class
A common stock at the date of grant and with a maximum term of approximately ten years. While
historically we have issued stock awards subject to vesting, typically at the rate of 20% per year, some
stock awards have been granted with immediate vesting and other stock awards vest only upon the
achievement of certain company-wide objectives. As of December 31, 2010, we had 76.2 million shares of
our Class A common stock available for future grant under our stock incentive plans.