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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
A total of 862.4 million shares of common stock have been reserved for issuance under the above five plans. At December 31, 2008, there were an
aggregate of 91.0 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 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 2008, 2007 and 2006, 11.7 million shares, 9.3 million shares and 11.5 million shares,
respectively, were purchased under the 1989 Plan at a weighted average purchase price per share of $10.49, $12.95 and $9.32, respectively. Total cash
proceeds from the purchase of shares under the 1989 Plan in 2008, 2007 and 2006 were $122.4 million, $120.8 million and $107.6 million, respectively. At
December 31, 2008, there was an aggregate of 9.0 million shares of common stock available for issuance pursuant to future grants under the 1989 Plan.
EMC Information Infrastructure Stock Options
The following table summarizes our option activity under all equity plans in 2008, 2007 and 2006 (shares in thousands):
Number of
Shares
Weighted Average
Exercise Price
(per share)
Outstanding, January 1, 2006 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
Options granted relating to business acquisitions 1,200 12.43
Granted 36,208 14.95
Forfeited (6,852) 14.43
Expired (7,096) 33.98
Exercised (12,713) 9.34
Outstanding, December 31, 2008 250,119 19.14
Exercisable, December 31, 2008 156,229 21.72
Vested and expected to vest, December 31, 2008 234,069 $ 19.44
At December 31, 2008 the weighted-average remaining contractual terms was 4.06 years and the aggregate intrinsic value was $102.1 million for the
156,229 shares exercisable. For the 234,069 shares vested and expected to vest at December 31, 2008, the weighted-average remaining contractual terms was
5.47 years and the aggregate intrinsic value was $115.1 million. The intrinsic value is based on our closing stock price of $10.47 as of December 31, 2008
which would have
93