SEC FORM 3

SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person^*

Russell Dana C

(Last)

(First)

(Middle)

1800 S. NOVELL PLACE, SJF-1-100

(Street)

PROVO

84606

(City)

(State)

(Zip)

2. Date of Event Requiring Statement (Month/Day/Year)
06/21/2006

3. Issuer Name and Ticker or Trading Symbol
NOVELL INC [ NOVL ]

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	CFO

5. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	7,852	D

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivative Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
Restricted Stock Units	⁽¹⁾	⁽¹⁾	Common Stock	17,097	⁽²⁾	D
Stock Option to buy⁽³⁾	⁽³⁾	08/17/2011	Common Stock	10,000	$4.68	D
Stock Option to buy⁽⁴⁾	⁽⁴⁾	08/17/2011	Common Stock	11,000	$4.68	D
Stock Option to buy⁽⁵⁾	⁽⁵⁾	08/17/2011	Common Stock	25,000	$4.68	D
Stock Option to buy⁽⁶⁾	⁽⁶⁾	08/17/2011	Common Stock	26,000	$4.68	D
Stock Option to buy⁽⁷⁾	⁽⁷⁾	09/10/2011	Common Stock	32,000	$3.92	D
Stock Option to buy⁽⁸⁾	⁽⁸⁾	12/16/2007	Common Stock	24,651	$9.139	D
Stock Option to buy	⁽⁹⁾	01/07/2012	Common Stock	13,000	$10.68	D
Stock Option to buy	⁽¹⁰⁾	03/30/2013	Common Stock	40,000	$5.55	D

Explanation of Responses:

1. The restricted stock units vest in three equal annual installments beginning 03/10/2007. Vested shares will be delivered to the reporting person on each vest date.

2. Each restricted stock unit represents a contingent right to receive one share of Novell, Inc. common stock without payment of additional consideration.

3. This option, which was issued in connection with an option exchange program, was vested 75% on the date of grant, vested an additional 6.25% quarterly thereafter, and is now fully vested.

4. This option, which was issued in connection with an option exchange program, was vested 62.5% on the date of grant, vested an additional 6.25% quarterly thereafter, and is now fully vested.

5. This option, which was issued in connection with an option exchange program, was vested 50% on the date of grant, vested an additional 6.25% quarterly thereafter, and is now fully vested.

6. This option, which was issued in connection with an option exchange program, was vested 37.5% on the date of grant, vested an additional 6.25% quarterly thereafter, and is now fully vested.

7. The option vested 25% on 09/10/2002, and vested 6.25% quarterly thereafter, and is now fully vested.

8. The option vested 50% on 12/16/2004 with the remaining 50% vested on 12/16/2005, and is now fully vested.

9. 7,854 shares vested as of June 7, 2006, and thereafter 2.0833% will vest monthly.

10. 11,666 shares vested as of May 30, 2006, and thereafter 2.0833% will vest monthly.

	By: /s/Elizabeth DePaola authorized signer for	06/28/2006
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.