EMC 2004 Annual Report Download - page 95

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
recorded as deferred compensation on the balance sheet and are being amortized over the vesting periods of the awards.
In 2003, options to purchase 75,000 shares of common stock with an exercise price of $.01 per share were granted to an employee. The options were
exercisable on the date of grant and were exercised. The shares of common stock issued upon exercise are subject to certain restrictions on transfer and
repurchase by EMC upon certain events which lapse on the fifth anniversary of the grant date. Discounts from fair value have been recorded as deferred
compensation and are being amortized over a five-year vesting period; however, in the event that certain performance-related criteria are met, the vesting
accelerates. As of December 31, 2004, 25,000 shares have vested.
In 2002, performance-related options to purchase 2,063,000 shares of common stock were granted at $7.70 per share, the fair market value on the date of
grant, to certain employees. The options vest ratably over five years; however, in the event that certain performance-related criteria are met, the vesting
accelerates. As of December 31, 2004, 1,922,948 shares have vested.
We have a stock option plan that provides for the grant of stock options to members of our 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 fair market value of common stock on the date of
grant.
At December 31, 2004, there was an aggregate of approximately 48.2 million shares available for issuance pursuant to future option grants under the 1985
Plan, the 1993 Plan, the 2001 Plan, the 2003 Plan and the Directors Plan. Except as noted above, 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.
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. 92