Broderbund’s future success depended in large part upon the continued service of its key technical and senior management personnel and upon its ability to continue to attract, motivate, and retain highly qualified employees. As of August 31, 1994, the company had 438 employees, including 154 in product development; 127 in sales, marketing, and customer service; 118 in manufacturing and shipping; and 39 in administration and finance. The company had an employee and consultant stock option plan and a profit-sharing and retirement plan. Competition for trained programmers, artists, and writers was intense, and the loss of the service of key personnel could have a material adverse effect on the company’s employees was represented by a labor union or was subject to a collective bargaining agreement. The company had never experienced a work stoppage and believed that its employee relation were good.