EMC 2007 Annual Report Download - page 95

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EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
not less than par value (which is $0.01 per share), and in the case of employees subject to Section 16, not less than 50% of the fair market value on the date of
grant. In the event that non-qualified stock options were granted under the 1993 Plan or the 2001 Plan, the exercise price could have been less than the fair
market value at the time of grant but not less than par value. Previously under the Directors Plan, the exercise price for each option granted was determined at
the time the option was granted, but could not be less than 50% of the fair market value of common stock on the date of grant.
A total of 862.4 million shares of common stock have been reserved for issuance under the above five plans. At December 31, 2007, there were an
aggregate of 138.1 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 Employee Stock Purchase Plan
Under our 1989 Employee Stock Purchase Plan (the "1989 Plan"), eligible employees may purchase shares of common stock through payroll deductions
at the lower of 85% of the fair market value of the stock at the time of grant or 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 123.0 million shares of common
stock have been reserved for issuance under the 1989 Plan. In 2007, 2006 and 2005, 9.3 million shares, 11.5 million shares and 8.7 million shares,
respectively, were purchased under the 1989 Plan at a weighted average purchase price per share of $12.95, $9.32 and $11.61, respectively. Total cash
proceeds from the purchase of shares under the 1989 Plan in 2007, 2006 and 2005 were $120.8 million, $107.6 million and $100.9 million, respectively.
EMC Stock Options
The following tables summarize our option activity under all equity plans in 2007, 2006 and 2005 (shares in thousands):
Number of
Shares
Wtd. Avg.
Exercise Price
Outstanding, January 1, 2005 275,341 $ 18.02
Options granted relating to business acquisitions 7,985 5.15
Granted 51,442 14.34
Forfeited (8,443) 14.18
Expired (4,997) 38.28
Exercised (25,078) 6.74
Outstanding, December 31, 2005 296,250 17.78
Options granted relating to business acquisitions 16,393 5.70
Granted 32,423 10.98
Forfeited (11,162) 12.57
Expired (7,480) 29.06
Exercised (23,240) 6.48
Outstanding, December 31, 2006 303,184 17.19
Options granted relating to business acquisitions 921 3.39
Granted 28,777 19.15
Forfeited (9,640) 12.01
Expired (4,321) 38.28
Exercised (68,540) 9.66
Exchanged to VMware awards (11,009) 12.19
Outstanding, December 31, 2007 239,372 $ 19.60
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