EMC 2009 Annual Report Download - page 82

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
EMC Information Infrastructure Restricted Stock and Restricted Stock Units
The following table summarizes our restricted stock and restricted stock unit activity in 2009, 2008 and 2007 (shares in thousands):
Number of
Shares
Weighted Average
Grant Date
Fair Value
Restricted stock and restricted stock units at January 1, 2007 27,901 $ 13.05
Granted 9,358 19.05
Vested (7,158) 13.17
Forfeited (1,237) 13.16
Exchanged to VMware awards (4,697) 13.14
Outstanding, December 31, 2007 24,167 15.30
Granted 12,865 15.07
Vested (7,113) 14.05
Forfeited (1,017) 16.12
Outstanding, December 31, 2008 28,902 15.49
Granted 21,431 14.58
Vested (10,951) 14.83
Forfeited (2,019) 15.56
Restricted stock and restricted stock units at December 31, 2009 37,363 $ 15.01
The total fair values of restricted stock and restricted stock units that vested in 2009, 2008 and 2007 were $138.4 million, $105.7 million and $105.2
million, respectively.
Our restricted stock awards are valued based on our stock price on the grant date. Our restricted stock awards have various vesting terms from the date
of grant, including pro rata vesting over three or four years, cliff vesting at the end of three or five years with acceleration for achieving specified performance
criteria and vesting on various dates contingent on achieving specified performance criteria. For awards with performance conditions, management evaluates
the criteria in each grant to determine the probability that the performance condition will be achieved.
As of December 31, 2009, 37.4 million shares of restricted stock and restricted stock units were outstanding and unvested, with an aggregate intrinsic
value of $652.7 million. These shares and units are scheduled to vest through 2014. Of the total shares of restricted stock and restricted stock units
outstanding, 33.1 million shares and units will vest upon fulfilling service conditions, of which vesting for 12.7 million shares and units will accelerate upon
achieving performance conditions. The remaining 4.3 million shares and units will vest only if certain performance conditions are achieved.
VMware Equity Plans
In June 2007, VMware adopted its 2007 Equity and Incentive Plan (the "2007 Plan"). In May 2009, VMware amended its 2007 Plan to increase the
number of shares available for issuance by 20 million shares for total shares available for issuance of 100.0 million. Awards under the 2007 Plan may be in
the form of stock options or other stock-based awards, including awards of restricted stock. The exercise price for a stock option awarded under the 2007 Plan
shall not be less than 100% of the fair market value of VMware Class A common stock on the date of grant. Most options granted under the 2007 Plan vest
25% after the first year and then monthly thereafter over the following three years. All options granted pursuant to the 2007 Plan expire between six and seven
years from the date of grant. Most restricted stock awards granted under the 2007 Plan have a three-year to four-year period over which they vest. VMware
utilizes both authorized and unissued shares to satisfy all shares issued under the 2007 Plan.
2008 VMware Exchange Offer
In September 2008, VMware completed an offer to exchange certain employee stock options issued under VMware's 2007 Equity and Incentive Plan
("2008 Exchange Offer"). Certain previously granted options were exchanged for new, lower-priced stock options granted on a one-for-one basis. Executive
officers and members of VMware's Board of Directors were excluded from participating in the 2008 Exchange Offer. Options for an aggregate of 4.1 million
shares of VMware's Class A common stock
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