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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001181431-06-058275.txt : 20061016
<SEC-HEADER>0001181431-06-058275.hdr.sgml : 20061016
<ACCEPTANCE-DATETIME>20061016212026
ACCESSION NUMBER:		0001181431-06-058275
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061012
FILED AS OF DATE:		20061016
DATE AS OF CHANGE:		20061016

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FILENET CORP
		CENTRAL INDEX KEY:			0000706015
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				953757924
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		3565 HARBOR BLVD
		CITY:			COSTA MESA
		STATE:			CA
		ZIP:			92626
		BUSINESS PHONE:		7149663400

	MAIL ADDRESS:	
		STREET 1:		3565 HARBOR BLVD
		CITY:			COSTA MESA
		STATE:			CA
		ZIP:			926261420

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FILEX CORP
		DATE OF NAME CHANGE:	19830915

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			ERCANBRACK RON L
		CENTRAL INDEX KEY:			0001169928

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-15997
		FILM NUMBER:		061147402

	BUSINESS ADDRESS:	
		STREET 1:		3565 HARBOR BOULEVARD
		CITY:			COSTA MESA
		STATE:			CA
		ZIP:			92626-1420
		BUSINESS PHONE:		7143277673
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd133180.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-10-12</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0000706015</issuerCik>
        <issuerName>FILENET CORP</issuerName>
        <issuerTradingSymbol>FILE</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001169928</rptOwnerCik>
            <rptOwnerName>ERCANBRACK RON L</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>FILENET CORPORATION</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>COSTA MESA</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>92626-1420</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>President/Exec. VP WW Sales</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2006-10-12</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>10625</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>35.00</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
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            <expirationDate>
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            <underlyingSecurity>
                <underlyingSecurityTitle>
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        <derivativeTransaction>
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            <transactionDate>
                <value>2006-10-12</value>
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                <equitySwapInvolved>0</equitySwapInvolved>
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            <transactionAmounts>
                <transactionShares>
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                </transactionShares>
                <transactionPricePerShare>
                    <value>22.15</value>
                    <footnoteId id="F5"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
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            <exerciseDate>
                <footnoteId id="F5"/>
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            <expirationDate>
                <value>2012-12-04</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>16666</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
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                </directOrIndirectOwnership>
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        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>12.85</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-10-12</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>4167</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>22.15</value>
                    <footnoteId id="F6"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
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            <expirationDate>
                <value>2012-12-04</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>4167</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
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                <sharesOwnedFollowingTransaction>
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                    <value>D</value>
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        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>26.505</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-10-12</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
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            <transactionAmounts>
                <transactionShares>
                    <value>14628</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>8.495</value>
                    <footnoteId id="F7"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F7"/>
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            <expirationDate>
                <value>2013-12-04</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>14628</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
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                <sharesOwnedFollowingTransaction>
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        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>26.505</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-10-12</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
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            <transactionAmounts>
                <transactionShares>
                    <value>8750</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>8.495</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
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            <exerciseDate>
                <footnoteId id="F8"/>
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            <expirationDate>
                <value>2013-12-02</value>
            </expirationDate>
            <underlyingSecurity>
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            <securityTitle>
                <value>Stock Option (right to buy)</value>
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            <conversionOrExercisePrice>
                <value>26.64</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-10-12</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
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            <transactionAmounts>
                <transactionShares>
                    <value>15858</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>8.36</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
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            <exerciseDate>
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                <value>2014-12-15</value>
            </expirationDate>
            <underlyingSecurity>
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                    <value>Common Stock</value>
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                <underlyingSecurityShares>
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            <securityTitle>
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            <conversionOrExercisePrice>
                <value>26.64</value>
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                <transactionShares>
                    <value>22499</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>8.36</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F10"/>
            </exerciseDate>
            <expirationDate>
                <value>2014-12-15</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>22499</value>
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                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
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            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
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        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Represents shares of unvested restricted stock disposed of pursuant to the Merger Agreement under which International Business Machines Corporation (&quot;IBM&quot;) acquired the issuer (&quot;Merger&quot;) which provides for the cancellation of shares of common stock of the Issuer in exchange $35.00 per share (the &quot;Merger Consideration).</footnote>
        <footnote id="F2">Represents unvested shares of restriced common stock converted in the Merger into cash retention payments to be made by IBM until 2008 in a total amount of $371,875.</footnote>
        <footnote id="F3">The RSU's originally vested based upon issuer's achievement of targeted financial performance in 2006, 2007 and 2008, subject to partial accelaration upon change of control. Pursuant to the Merger, 50% or 82,500 shares vested and will be paid the Merger Consideration of $2,887,500, the remaining unvested 82,500 RSUs were converted into 34,972 generally comparable IBM RSUs to be paid out over 2006 - 2008.</footnote>
        <footnote id="F4">Each RSU represents the right to receive one share of Issuer's common stock, subject to the terms of the plan authorizing RSUs.</footnote>
        <footnote id="F5">This option, which provided for vesting 25% on December 4, 2003 and 1/36 of the total grant each month thereafter, was disposed of pursuant to the Merger Agreement in exchange for the per share Merger Consideration less the exercise price.</footnote>
        <footnote id="F6">This option, which provided for vesting in installments of 25% on December 4, 2003 and as to 1/36 of the total grant amount each month thereafter, was disposed of pursuant to the Merger Agreement into options to acquire 1,766 shares of common stock of IBM at a per share exercise price of $30.31.</footnote>
        <footnote id="F7">This option, which provided for vesting 25% on December 2, 2004 and 1/36 of the total grant each month thereafter, was disposed of pursuant to the Merger Agreement in exchange for the per share Merger Consideration less the exercise price.</footnote>
        <footnote id="F8">This option, which provided for vesting in installments of 25% on December 2, 2004 and as to 1/36 of the total grant amount each month thereafter, was disposed of pursuant to the Merger Agreement into options to acquire 3,708 shares of common stock of IBM at a per share exercise price of $62.52.</footnote>
        <footnote id="F9">This option, which provided for vesting 25% on December 15, 2005 and 1/36 of the total grant each month thereafter, was disposed of pursuant to the Merger Agreement in exchange for the per share Merger Consideration less the exercise price.</footnote>
        <footnote id="F10">This option, which provided for vesting in installments of 25% on December 15, 2005 and as to 1/36 of the total grant amount each month thereafter, was disposed of pursuant to the Merger Agreement into options to acquire 9,536 shares of common stock of IBM at a per share exercise price of $62.84.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Sam M. Auriemma, Attorney-in-Fact for Ron L. Ercanbrack</signatureName>
        <signatureDate>2006-10-16</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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