Dow Chemical 2013 Annual Report Download - page 147

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Employee Stock Purchase Plan 2013
Shares in thousands Shares
Exercise
Price
Outstanding at beginning of year — —
Granted 8,298 $ 27.05
Exercised (7,311) $ 27.05
Forfeited/Expired (987) $ 27.05
Outstanding and exercisable at end of year — —
Additional Information about Employee Stock Purchase Plan
In millions, except per share amounts 2013 2012 2011
Weighted-average fair value per share of purchase rights granted $ 7.20 $ 8.32 $ 11.39
Total compensation expense for ESPP $ 60 $ 79 $ 123
Related tax benefit $ 22 $ 29 $ 46
Total amount of cash received from the exercise of purchase rights $ 198 $ 166 $ 197
Total intrinsic value of purchase rights exercised (1) $ 68 $ 41 $ 98
Related tax benefit $ 25 $ 15 $ 36
(1) Difference between the market price at exercise and the price paid by the employee to exercise the purchase rights.
Stock Incentive Plan
The Company has historically granted equity awards under various plans (the "Prior Plans"). On February 9, 2012, the Board of
Directors authorized The Dow Chemical Company 2012 Stock Incentive Plan (the "2012 Plan"). The 2012 Plan was approved
by stockholders at the Company's annual meeting on May 10, 2012 and became effective on that date. The 2012 Plan
supersedes the Prior Plans. Under the 2012 Plan, the Company may grant options, deferred stock, performance deferred stock,
restricted stock, stock appreciation rights and stock units to employees and non-employee directors over the 10-year duration of
the Plan, subject to an aggregate limit and annual individual limits. The terms of the grants are fixed at the grant date. At
December 31, 2013, there were 20,582,818 shares available for grant under the 2012 Plan.
Stock Options
The Company grants stock options to certain employees. Under the 1988 Award and Option Plan (the "1988 Plan"), a plan
approved by stockholders, the Company granted options or shares of common stock to its employees subject to certain annual
and individual limits. The terms of the grants are fixed at the grant date. At December 31, 2012, there were no shares available
for grant under this plan. The 1988 Plan was superseded by the 2012 Plan on May 10, 2012.
Under the 1994 Non-Employee Directors’ Stock Plan, the Company was previously allowed to grant up to 300,000 options to
non-employee directors; however, no additional grants will be made under this plan. At December 31, 2013, there were 19,250
options outstanding under this plan.
Under the 2003 Non-Employee Directors' Stock Incentive Plan (the "2003 Plan"), the Company was previously allowed to
grant up to 1.5 million shares (including options, restricted stock and deferred stock) to non-employee directors over the 10-
year duration of the program. The 2003 Plan was superseded by the 2012 Plan on May 10, 2012. No additional grants will be
made under the 2003 Plan. At December 31, 2013, there were 106,950 options outstanding under this plan.