Symantec 2007 Annual Report Download - page 105

Note 10. Adoption of Stockholder Rights Plan
On August 11, 1998, the Board of Directors adopted a stockholder rights plan designed to ensure orderly
consideration of any future unsolicited acquisition attempt to ensure a fair value of Symantec for our stockholders.
In connection with the plan, the Board of Directors declared and paid a dividend of one preferred share purchase
right for each share of Symantec common stock outstanding on the record date, August 21, 1998. The rights are
initially attached to Symantec common stock and will not trade separately. If a person or a group, an Acquiring
Person, acquires 20% or more of our common stock, or announces an intention to make a tender offer for 20% or
more of our common stock, the rights will be distributed and will thereafter trade separately from the common
stock.
If the rights become exercisable, each right (other than rights held by the Acquiring Person) will entitle the
holder to purchase, at a price equal to the exercise price of the right, a number of shares of our common stock having
a then-current value of twice the exercise price of the right. If, after the rights become exercisable, we agree to
merge into another entity or we sell more than 50% of our assets, each right will entitle the holder to purchase, at a
price equal to the exercise price of the right, a number of shares of common stock of such entity having a then-
current value of twice the exercise price.
We may exchange the rights at a ratio of one share of common stock for each right (other than the Acquiring
Person) at any time after an Acquiring Person acquires 20% or more of our common stock but before such person
acquires 50% or more of our common stock. We may also redeem the rights at our option at a price of $0.001 per
right at any time before an Acquiring Person has acquired 20% or more of our common stock. The rights will expire
on August 12, 2008.
Note 11. Employee Benefits and Stock-Based Compensation
401(k) plan
We maintain a salary deferral 401(k) plan for all of our domestic employees. This plan allows employees to
contribute up to 50% of their pretax salary up to the maximum dollar limitation prescribed by the Internal Revenue
Code. We match 50% of the employee’s contribution. The maximum match in any given plan year is the lower of
3% of the employees’ eligible compensation or $6,000. Our contributions under the plan were $24 million,
$12 million, and $9 million, in fiscal 2007, 2006, and 2005, respectively.
Stock purchase plans
2002 Executive Officers’ Stock Purchase Plan
In September 2002, our stockholders approved the 2002 Executive Officers’ Stock Purchase Plan and reserved
250,000 shares of common stock for issuance thereunder, of which no shares are subject to adjustment pursuant to
changes in capital. The purpose of the plan is to provide executive officers with a means to acquire an equity interest
in Symantec at fair market value by applying a portion or all of their respective bonus payments towards the
purchase price. Each executive officer may purchase up to 10,000 shares in any fiscal year. As of March 31, 2007,
40,401 shares have been issued under the plan and 209,599 shares remain available for future issuance. Shares
reserved for issuance under this plan have not been adjusted for the stock dividends.
1998 Employee Stock Purchase Plan
In September 1998, our stockholders approved the 1998 Employee Stock Purchase Plan, or ESPP, and reserved
4 million shares of common stock for issuance thereunder. In September 1999, the ESPP was amended by our
stockholders to increase the shares available for issuance by 6 million and to add an “evergreen” provision whereby
the number of shares available for issuance increased automatically on January 1 of each year (beginning in 2000) by
1% of our outstanding shares of common stock on each immediately preceding December 31 during the term of the
99
SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)