EMC 2002 Annual Report Download - page 78

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
are achieved, 50% of such options will vest on June 30, 2003 and the remaining 50% will vest on January 31, 2004. Otherwise, the options will vest over five
years and have a final exercise date in July 2012.
In 2001, performance-related options to purchase 3,497,000 shares of Common Stock were granted at $36.66 per share, the fair market value on the
date of grant, to certain employees. 50% of such options will vest if the price of the Common Stock reaches $73.32 per share for at least 10 consecutive
trading days on or prior to April 18, 2004. The remaining 50% will vest if the price of the Common Stock reaches $109.98 per share for at least 10
consecutive trading days on or prior to April 18, 2004, provided that such options may not become exercisable prior to April 18, 2003. Otherwise, the options
will vest over five years and have a final exercise date in April 2011.
EMC has a stock option plan that provides for the grant of stock options to members of its Board of Directors (the "Directors Plan"). A total of 14.4
million shares of Common Stock have been reserved for issuance under the Directors Plan. The exercise price for each option granted under the Directors
Plan will be at a price per share determined at the time the option is granted, but not less than 50% of the per share fair market value of Common Stock on the
date of grant.
At December 31, 2002, there was an aggregate of approximately 23.5 million shares available for issuance pursuant to future option grants under the
1985 Plan, the 1993 Plan, the 2001 Plan and the Directors Plan. 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.
EMC has, in connection with the acquisition of various companies, assumed the stock option plans of these companies. Details of the stock option plans
assumed in connection with the acquisition of Data General are set out below. EMC does not intend to make future grants under any of such plans.
Data General had authorized the grant of either incentive stock options or non-qualified stock options to employees and directors to purchase up to an
aggregate of 7.5 million shares of Common Stock under certain stock option plans ("Data General Plans"). Discounts from fair market value have been
recorded as deferred compensation and are being amortized over the five-year vesting period of the options.
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