EMC 2010 Annual Report Download - page 82

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
O. Stock-Based Compensation
EMC Information Infrastructure Equity Plans
The EMC Corporation Amended and Restated 2003 Stock Plan (the "2003 Plan") provides for the grant of stock options, stock appreciation rights,
restricted stock and restricted stock units. The exercise price for a stock option shall not be less than 100% of the fair market value of our common stock on
the date of grant. Options generally become exercisable in annual installments over a period of three to five years after the date of grant and expire ten years
after the date of grant. Incentive stock options will expire no later than ten years after the date of grant. Restricted stock is common stock that is subject to a
risk of forfeiture or other restrictions that will lapse upon satisfaction of specified conditions. Restricted stock units represent the right to receive shares of
common stock in the future, with the right to future delivery of the shares subject to a risk of forfeiture or other restrictions that will lapse upon satisfaction of
specified conditions. Grants of restricted stock awards or restricted stock units that vest only by the passage of time will not vest fully in less than three years
after the date of grant, except for grants to non-employee Directors that are not subject to this minimum three-year vesting requirement. The 2003 Plan allows
us to grant up to 300.0 million shares of common stock. We recognize restricted stock awards and restricted stock units against the 2003 Plan share reserve as
two shares for every one share issued in connection with such awards.
In addition to the 2003 Plan, we have four other stock option plans (the "1985 Plan," the "1993 Plan," the "2001 Plan" and the "1992 Directors Plan").
In May 2007, these four plans were consolidated into the 2003 Plan such that all future grants will be granted under the 2003 Plan and shares that are not
issued as a result of cancellations, expirations or forfeitures, will become available for grant under the 2003 Plan.
A total of 862.4 million shares of common stock have been reserved for issuance under the above five plans. At December 31, 2010, there were an
aggregate of 43.4 million shares of common stock available for issuance pursuant to future grants under the 2003 Plan.
We have, in connection with the acquisition of various companies, assumed the stock option plans of these companies. We do not intend to make future
grants under any of such plans.
EMC Information Infrastructure Employee Stock Purchase Plan
Under our Amended and Restated 1989 Employee Stock Purchase Plan (the "1989 Plan"), eligible employees may purchase shares of common stock
through payroll deductions at 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly, on January 1 and
July 1, and are exercisable on the succeeding June 30 or December 31. A total of 153.0 million shares of common stock have been reserved for issuance under
the 1989 Plan. In 2010, 2009 and 2008, 6.9 million shares, 10.3 million shares and 11.7 million shares, respectively, were purchased under the 1989 Plan at a
weighted-average purchase price per share of $17.37, $11.17 and $10.49, respectively. Total cash proceeds from the purchase of shares under the 1989 Plan in
2010, 2009 and 2008 were $120.7 million, $115.3 million and $122.4 million, respectively. At December 31, 2010, there was an aggregate of 21.7 million
shares of common stock available for issuance pursuant to future grants under the 1989 Plan.
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