Symantec 2008 Annual Report Download - page 41

The New ESPP allows us the ability to establish separate sub-plans to permit the purchase of our common
stock either through the “Statutory Plan,” which is intended to satisfy the requirements of Section 423 of the Code,
or through one or more “Non-Statutory Plans” which will not comply with Section 423. Each of the Statutory Plan
and the Non-Statutory Plans shall be operated as separate and independent plans, although the total number of
shares authorized to be issued under the New ESPP applies in the aggregate to both the Statutory Plan and all Non-
Statutory Plans. Other than the share reserve, our Board may adopt special provisions, rules and procedures for a
particular Non-Statutory Plan that are different from, and may in certain cases supersede the provisions of the New
ESPP, without seeking stockholder approval.
Offering Periods
The New ESPP will operate by offering eligible employees the right to purchase stock through a series of
successive or overlapping offering periods (each an “Offering Period”). While we may offer Offering Periods of
any duration up to 27 months, we currently intend to operate the plan beginning in February 2009 through a series of
successive six-month Offering Periods that will begin each February 16 and August 16 (or the first business day
after that date), and end, respectively, on the following August 15 and February 15 (or the last business day
preceding that date). The New ESPP also permits us to provide for multiple purchase dates within a single Offering
Period. We intend at this time to continue the structure we are using under the Old ESPP of having only a single
purchase date for each Offering Period. This single purchase date will occur on the last business day of the Offering
Period, at which time all accrued payroll deductions of each participant are applied to the purchase of shares on the
purchase terms described below.
Eligibility and Participation
Employees (including officers and employee directors) who are employed for at least 20 hours per week and
more than five months in any calendar year and who are employed by us as of the third business day before the
beginning of an Offering Period are eligible to participate in that Offering Period, subject to certain limitations
imposed by Section 423(b) of the Code, applicable local law for locations outside of the United States and the plan
itself. For example, no employee may be granted an option under the New ESPP if immediately after the grant such
employee would own stock and/or hold outstanding options to purchase stock possessing 5% or more of the total
voting power or value of all classes of stock of Symantec or our subsidiaries. As of July 4, 2008, approximately
17,000 employees (including officers and employee directors) were eligible to participate in the New ESPP. As a
result of such eligibility, each executive officer and each person who previously served as an executive officer
during fiscal 2008 and remains employed by Symantec has an interest in Proposal No. 3.
Eligible employees become participants in the New ESPP by submitting an enrollment form authorizing
payroll deductions prior to the beginning of an Offering Period (unless payroll deductions are not permitted under
local law, in which case such other payment methods as we may approve). Once a participant enrolls in an Offering
Period under the New ESPP, he or she is automatically enrolled in subsequent Offering Periods unless he or she
withdraws from or becomes ineligible to participate in the plan. Once an employee has enrolled in the New ESPP,
amounts are withheld from his or her compensation during each payroll period as described below. An employee
may elect to have not less than 2% nor more than 10% of his or her compensation during an Offering Period
withheld to be used to purchase shares under the New ESPP. Eligible compensation is defined in the New ESPP as
all compensation including base salary, wages, commissions, overtime, shift premiums and bonuses, plus draws
against commissions but excluding amounts related to Company equity compensation, except that for purposes of
any Non-Statutory Plan, compensation is defined as base salary. A participant may decrease, but not increase, the
rate of his or her payroll deductions once during an ongoing Offering Period by completing and filing a new
authorization for payroll deductions form.
Grant and Exercise of Option; Purchase Price
On the first trading date of an Offering Period (which is referred to as the grant date or the “Offering Date”),
each participant is granted an option to purchase up to that number of shares determined by dividing his or her
payroll deductions accumulated during the Offering Period as of the last trading day of the Offering Period by the
purchase price applicable for that Offering Period. As we intend to continue operating the New ESPP as we have
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