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<TITLE>Dell Computer Corp. Definitive Proxy Statement</TITLE>
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<DIV align="center">
<B>UNITED STATES</B>
</DIV>
<DIV align="center">
<B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>
<DIV align="center">
<B>WASHINGTON, D.C. 20549</B>
</DIV>
<P align="center">
<B>SCHEDULE 14A</B>
<DIV align="center">
<B>(Rule 14a-101)</B>
</DIV>
<P align="center">
<B>INFORMATION REQUIRED IN PROXY STATEMENT</B>
<P align="center">
<B>SCHEDULE 14A INFORMATION</B>
<P align="center">
<B>Proxy Statement Pursuant to Section 14(a) of the
Securities</B>
<DIV align="center">
<B>Exchange Act of 1934</B>
</DIV>
<P>
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<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD align="left">
Filed by the Registrant [X]</TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD align="left">
Filed by a Party other than the Registrant
[ ]</TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD align="left">
Check the appropriate box:</TD>
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</TABLE>
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<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="43%"> </TD>
<TD width="3%"> </TD>
<TD width="54%"> </TD>
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<TR>
<TD align="left" valign="top"><FONT size="2">
[ ] Preliminary Proxy Statement</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
[ ] Confidential, for Use of the Commission
Only<BR>
(as permitted by Rule 14a-6(e)(2))</FONT></TD>
</TR>
</TABLE>
</CENTER>
<DIV align="left">
[X] Definitive Proxy Statement
</DIV>
<DIV align="left">
[ ] Definitive Additional Materials
</DIV>
<DIV align="left">
[ ] Soliciting Material Pursuant to
§ 240.14a-11(c) or § 240.14a-12
</DIV>
<P align="center">
Dell Computer Corporation
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="center">
(Name of Registrant as Specified in its Charter)
</DIV>
<P align="left">
<HR size="1" width="100%" align="left">
<DIV align="center">
(Name of Person(s) Filing Proxy Statement, if other than the
Registrant)
</DIV>
<P align="left">
Payment of Filing Fee (Check the appropriate box):
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
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<TD width="1%"></TD>
<TD width="6%"></TD>
<TD width="93%"></TD>
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<TR valign="top">
<TD> </TD>
<TD>[X] </TD>
<TD align="left">
No fee required.</TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>[ ] </TD>
<TD align="left">
Fee computed on table below per Exchange Act Rules 14a-6(i)(l)
and 0-11.</TD>
</TR>
</TABLE>
<P align="left">
(1) Title of each class of securities to which transaction
applies:
<DIV align="center">
N/A
</DIV>
<P align="left">
<HR size="1" width="100%" align="left">
<DIV align="left">
(2) Aggregate number of securities to which transaction
applies:
</DIV>
<DIV align="center">
N/A
</DIV>
<P align="left">
<HR size="1" width="100%" align="left">
<DIV align="left">
(3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (Set forth the
amount on which the filing fee is calculated and state how it was
determined):
</DIV>
<DIV align="center">
N/A
</DIV>
<P align="left">
<HR size="1" width="100%" align="left">
<DIV align="left">
(4) Proposed maximum aggregate value of transaction:
</DIV>
<DIV align="center">
N/A
</DIV>
<P align="left">
<HR size="1" width="100%" align="left">
<DIV align="left">
(5) Total fee paid:
</DIV>
<DIV align="center">
N/A
</DIV>
<P align="left">
<HR size="1" width="100%" align="left">
<P align="left">
[ ] Fee paid previously with preliminary
materials.
<P align="left">
[ ] Check box if any part of the fee is
offset as provided by Exchange Act Rule 0-11(a)(2) and
identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of
its filing.
<P align="left">
(1) Amount Previously Paid:
<DIV align="center">
N/A
</DIV>
<P align="left">
<HR size="1" width="100%" align="left">
<DIV align="left">
(2) Form, Schedule or Registration Statement No.:
</DIV>
<DIV align="center">
N/A
</DIV>
<P align="left">
<HR size="1" width="100%" align="left">
<DIV align="left">
(3) Filing Party:
</DIV>
<DIV align="center">
N/A
</DIV>
<P align="left">
<HR size="1" width="100%" align="left">
<DIV align="left">
(4) Date Filed:
</DIV>
<DIV align="center">
N/A
</DIV>
<P align="left">
<HR size="1" width="100%" align="left">
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<!-- TOC -->
<A name="toc"><DIV align="CENTER"><U><B>TABLE OF CONTENTS</B></U></DIV></A>
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</TR>
<TR><TD colspan="9"><A HREF="#000">NOTICE OF ANNUAL MEETING AND PROXY STATEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">TABLE OF CONTENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">NOTICE OF ANNUAL MEETING OF STOCKHOLDERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">PROXY STATEMENT</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#004">Election of Directors</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#005">Director Information</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#006">Committees</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#007">Meetings and Attendance</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#008">Director Compensation</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#009">Executive Compensation</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#010">Compensation Committee Report</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#011">Compensation Philosophy</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#012">Compensation Committee Interlocks and Insider Participation</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#013">Summary Compensation Table</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#014">Stock Options</A></TD></TR>
<TR><TD></TD><TD></TD><TD></TD><TD colspan="6"><A HREF="#015">OPTION GRANTS IN LAST FISCAL YEAR</A></TD></TR>
<TR><TD></TD><TD></TD><TD></TD><TD colspan="6"><A HREF="#016">AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR AND FISCAL YEAR-END OPTION VALUES</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#017">Other Benefits</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#018">Employment Agreements and Change-in-Control Arrangements</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#019">Five-Year Performance Graph</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#020">Stock Ownership</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#021">Other Director and Executive Officer Information</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#022">Certain Relationships and Related Party Transactions</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#023">Section 16(a) Beneficial Ownership Reporting Compliance</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#024">Additional Information</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#025">Record Date; Shares Outstanding</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#026">Quorum</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#027">Proxies; Right to Revoke</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#028">Default Voting</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#029">Tabulation of Votes</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#030">Voting by Street Name Holders</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#031">Independent Accountants</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#032">Proxy Solicitation</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#033">Stockholder Proposals for Next Year’s Meeting</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#034">Stockholder List</A></TD></TR>
<TR><TD></TD><TD></TD><TD colspan="7"><A HREF="#035">Annual Report on Form 10-K</A></TD></TR>
</TABLE>
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<DIV> </DIV>
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<DIV align="left"><A NAME="000"></A></DIV>
<P align="center"><B><FONT size="4">NOTICE OF ANNUAL MEETING</FONT></B>
<P align="center">
<B><FONT size="4">AND</FONT></B>
<P align="center">
<B><FONT size="4">PROXY STATEMENT</FONT></B>
<P align="center">
<B><FONT size="4">2000</FONT></B>
<P align="center">
<B><FONT size="4">Logo</FONT></B>
<P align="center">
<B><FONT size="4">Dell Com Logo</FONT></B>
<DIV align="center">
<B><FONT size="5">www.dell.com</FONT></B>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link1 "TABLE OF CONTENTS" -->
<DIV align="left"><A NAME="001"></A></DIV>
<P align="center"><B>TABLE OF CONTENTS</B>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="3%"> </TD>
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<TD width="3%"> </TD>
<TD width="1%"> </TD>
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<TD width="1%"> </TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="4" align="left" valign="top"><FONT size="2">
Notice of Annual Meeting</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">ii</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="4" align="left" valign="top"><FONT size="2">
Proxy Statement</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Election of Directors</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Director Information</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Committees</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Meetings and Attendance</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Director Compensation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Executive Compensation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Compensation Committee Report</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Compensation Committee Interlocks and Insider Participation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Summary Compensation Table</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Stock Options</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Option Grants in Last Fiscal Year</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Aggregated Option Exercises in Last Fiscal Year and Fiscal
Year-end Option Values</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other Benefits</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Employment Agreements and Change-in-Control Arrangements</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Five-Year Performance Graph</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Stock Ownership</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Other Director and Executive Officer Information</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Certain Relationships and Related Party Transactions</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Section 16(a) Beneficial Ownership Reporting Compliance</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Additional Information</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Record Date; Shares Outstanding</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Quorum</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Proxies; Right to Revoke</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Default Voting</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Tabulation of Votes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Voting by Street Name Holders</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Independent Accountants</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Proxy Solicitation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Stockholder Proposals for Next Year’s Meeting</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Stockholder List</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">20</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Annual Report on Form 10-K</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">20</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">i
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="center"><B>DELL COMPUTER CORPORATION</B>
<DIV align="center">
One Dell Way
</DIV>
<DIV align="center">
Round Rock, Texas 78682
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link1 "NOTICE OF ANNUAL MEETING OF STOCKHOLDERS" -->
<DIV align="left"><A NAME="002"></A></DIV>
<P align="center"><B>NOTICE OF ANNUAL MEETING OF STOCKHOLDERS</B>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="36%"></TD>
<TD width="1%"></TD>
<TD width="63%"></TD>
</TR>
<TR>
<TD valign="top">
<B>Date</B></TD>
<TD></TD>
<TD valign="top">
Thursday, July 20, 2000</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Time</B></TD>
<TD></TD>
<TD valign="top">
9:00 a.m., Central Time</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Place</B></TD>
<TD></TD>
<TD valign="top">
Austin Convention Center <BR>
Exhibit Hall #2 <BR>
500 E. Cesar Chavez <BR>
Austin, Texas</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Proposal</B></TD>
<TD></TD>
<TD valign="top">
Election of four directors</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Record Date</B></TD>
<TD></TD>
<TD valign="top">
May 23, 2000</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Voting Methods</B></TD>
<TD></TD>
<TD valign="top">
Internet — Use the website shown on <BR>
the proxy card <BR>
Telephone — Use the toll-free number <BR>
shown on the proxy card <BR>
Written ballot — Complete and return a <BR>
proxy card <BR>
In person — Attend and vote at the <BR>
meeting</TD>
</TR>
</TABLE>
<P align="left">
Stockholders will also transact any other business properly
brought before the meeting. At this time, the Board of Directors
knows of no other proposals or matters to be presented.
<P align="left">
This Proxy Statement is accompanied by a copy of the Annual
Report on Form 10-K and a copy of the brochure entitled
“Fiscal 2000 in Review.”
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="36%"></TD>
<TD width="64%"></TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD align="left">
<I>On behalf of the Board of Directors:</I></TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD align="left">
Thomas B. Green, Secretary</TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD align="left">
May 26, 2000</TD>
</TR>
</TABLE>
<P align="center">ii
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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV align="center">
DELL.COM LOGO
</DIV>
<!-- link1 "PROXY STATEMENT" -->
<DIV align="left"><A NAME="003"></A></DIV>
<P align="center"><B><FONT size="4">PROXY STATEMENT</FONT></B>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
This Proxy Statement is furnished in connection with the
solicitation of proxies by Dell Computer Corporation, on behalf
of the Board of Directors, for the 2000 Annual Meeting of
Stockholders. This Proxy Statement and the related proxy form are
being distributed on or about June 5, 2000.
<P align="left">
You can vote your shares using one of the following methods:
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="4%"></TD>
<TD width="2%"></TD>
<TD width="94%"></TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>• </TD>
<TD align="left">
Vote through the Internet at the website shown on the proxy card</TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>• </TD>
<TD align="left">
Vote by telephone using the toll-free number shown on the proxy
card</TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>• </TD>
<TD align="left">
Complete and return a written proxy card</TD>
</TR>
</TABLE>
<P align="left">
Votes submitted through the Internet or by telephone must be
received by 4:00 p.m., Eastern Time, on July 19, 2000.
Internet and telephone voting are available 24 hours a day,
and if you use one of those methods, you do not need to return a
proxy card.
<P align="left">
You can also vote in person at the meeting, and submitting your
voting instructions by any of the methods mentioned above will
not affect your right to attend the meeting and vote.
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link2 "Election of Directors" -->
<DIV align="left"><A NAME="004"></A></DIV>
<DIV align="left"><B><FONT size="4">ELECTION OF DIRECTORS</FONT></B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
The only proposal scheduled to be voted on at the meeting is the
election of four directors. Three of these directors will serve
full three-year terms as Class III directors, and one will
serve for the remaining two years of a three-year term as a
Class II director. The Board of Directors has nominated
Alex J. Mandl, Michael A. Miles and Morton L.
Topfer for the Class III directorships and has nominated
Samuel A. Nunn, Jr. for the Class II directorship. All
of these individuals are currently serving as Dell directors.
<P align="left"><B>The Board of Directors recommends a vote “FOR” all
nominees.</B>
<P align="left">
The Board has no reason to believe that any nominee would be
unable or unwilling to serve if elected. If a nominee becomes
unable or unwilling to accept nomination or election, the Board
will either select a substitute nominee or will reduce the size
of the Board. If you have submitted a proxy and a substitute
nominee is selected, your shares will be voted for the election
of the substitute nominee.
<P align="left">
Claudine B. Malone, who is currently serving as a
Class III director, is retiring from the Board after seven
years of service and is not standing for reelection. Her
retirement will be effective the day before the annual meeting.
<P align="left">
In accordance with the bylaws, directors are elected by a
plurality of the votes of shares represented and entitled to be
voted at the meeting. That means the four
<P align="center">1
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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV align="left">
nominees will be elected if they receive more affirmative votes
than any other nominees.
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link2 "Director Information" -->
<DIV align="left"><A NAME="005"></A></DIV>
<DIV align="left"><B>Director Information</B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
The Board is separated into three classes, each with a three-year
term. The terms of the Class I directors expire in 2001,
the terms of the Class II directors expire in 2002, and the
terms of the Class III directors expire in 2003.
<P align="left">
Set forth below is biographical and other information about the
persons who will make up the Board following the annual meeting,
assuming election of the nominees named above
<DIV> </DIV>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="36%"></TD>
<TD width="1%"></TD>
<TD width="63%"></TD>
</TR>
<TR>
<TD valign="top">
<B>Donald J. Carty</B><BR>Class I<BR>Age: 53<BR>Director since
December 1992<BR>Board Committees: Compensation</TD>
<TD></TD>
<TD valign="top">
Mr. Carty is Chairman of the Board, President and Chief
Executive Officer of AMR Corporation and American
Airlines, Inc., a subsidiary of AMR Corporation, positions
he has held since May 1998. From March 1995 to May 1998,
Mr. Carty was President of American Airlines, Inc.,
President of AMR Airline Group and Executive Vice President of
AMR Corporation. Mr. Carty serves on the Board of Trustees
of Queen’s University in Kingston, Ontario.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Michael S. Dell</B><BR>Class II<BR>Age: 35<BR>Director since
May 1984<BR>No Board Committees</TD>
<TD></TD>
<TD valign="top">
Mr. Dell is the company’s Chairman of the Board and
Chief Executive Officer. Mr. Dell founded the company in
1984 while attending the University of Texas at Austin. He is a
member of the boards of directors of the United States Chamber of
Commerce, the Computerworld/ Smithsonian Awards and the World
Economic Forum Foundation. Mr. Dell is also a member of the
Business Council, serves on the nominating committee for the
National Technology Medal of Honor and is an Advisor to the
Innovative Technology Management Association at the University of
Texas.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Michael H. Jordan</B><BR>Class II<BR>Age: 63<BR>Director
since December 1992<BR>Board Committees: Audit, Nominating</TD>
<TD></TD>
<TD valign="top">
Mr. Jordan is the former Chairman and Chief Executive
Officer of CBS Corporation (formerly Westinghouse Electric
Corporation), positions he held from July 1993 until December
1998. Prior to joining Westinghouse, he was a principal with the
investment firm of Clayton, Dubilier and Rice from September 1992
through June 1993, Chair-</TD>
</TR>
</TABLE>
<P align="center">2
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<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="36%"></TD>
<TD width="1%"></TD>
<TD width="63%"></TD>
</TR>
<TR>
<TD valign="top">
</TD>
<TD></TD>
<TD valign="top">
man of PepsiCo International from December 1990 through July 1992
and Chairman of PepsiCo World-Wide Foods from December 1986 to
December 1990. Mr. Jordan is also a member of the boards of
directors Aetna Inc., Marketwatch.com, Inc., Clariti
Telecommunications International Ltd., Luminant Worldwide
Corporation and Young & Rubicam, Inc.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Thomas W. Luce III</B><BR>Class I<BR>Age: 59<BR>Director
since November 1991<BR>Board Committees: Compensation</TD>
<TD></TD>
<TD valign="top">
Mr. Luce is of counsel with the law firm Hughes &
Luce, L.L.P., Dallas, Texas, having co-founded the firm in
1973. He is also a partner with Luce &
Williams, Ltd., a business advisory firm. From October 1991
through April 1992, Mr. Luce was Chairman of the Board and
Chief Executive Officer of First Southwest Company, a
Dallas-based investment firm that is a member of the National
Association of Securities Dealers, Inc.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Klaus S. Luft</B><BR>Class II<BR>Age: 58<BR>Director since
March 1995<BR>Board Committees: Compensation</TD>
<TD></TD>
<TD valign="top">
Mr. Luft is the founder, owner and President of
MATCH — Market Access for Technology Services GmbH, a
private company established in 1994 and headquartered in Munich,
Germany. MATCH provides sales and marketing services to high
technology companies. Since August 1990, Mr. Luft has served
and continues to serve as Vice Chairman and International
Advisor to Goldman Sachs Europe Limited. From March 1986 to
November 1989, he was Chief Executive Officer of Nixdorf
Computer AG, a manufacturer of computer systems in
Paderborn, Germany, where he also held various other executive
positions for more than 17 years in marketing, manufacturing
and finance. Mr. Luft is also a member of the boards of
directors of Sagent Technology Inc. and
Broadvision, Inc.</TD>
</TR>
</TABLE>
<P align="center">3
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<DIV> </DIV>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="36%"></TD>
<TD width="1%"></TD>
<TD width="63%"></TD>
</TR>
<TR>
<TD valign="top">
<B>Alex J. Mandl</B><BR>Class III<BR>Age: 56<BR>Director since
November 1997<BR>Board Committees: Audit, Nominating</TD>
<TD></TD>
<TD valign="top">
Mr. Mandl is the Chairman and Chief Executive Officer of
Teligent Inc., a telecommunications company that offers
local, long distance, Internet and other advanced communication
services directly to business customers. Before joining Teligent
in August 1996, Mr. Mandl was President and Chief Operating
Officer of AT&T, where he directed the long distance,
wireless and local communications services. During his tenure at
AT&T, Mr. Mandl also held the positions of Executive
Vice President and Chief Executive Officer of the Communication
Services Group, Chief Financial Officer and Group Executive.
Mr. Mandl is also a member of the board of directors of
Warner-Lambert Company.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Michael A. Miles</B><BR>Class III<BR>Age: 60<BR>Director
since February 1995<BR>Board Committees: Finance</TD>
<TD></TD>
<TD valign="top">
Mr. Miles is a special limited partner of Forstmann Little
and Co. He is the former Chairman of the Board and Chief
Executive Officer of Philip Morris Companies Inc., having
served in that position from September 1991 to July 1994. Prior
to assuming that position, Mr. Miles was Vice Chairman and a
member of the board of directors of Philip Morris
Companies Inc. Mr. Miles is a member of the boards of
directors of Morgan Stanley Dean Witter & Co.,
Sears, Roebuck and Co., Time Warner Inc., The Allstate
Corporation and The Interpublic Group of Companies, Inc.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Samuel A. Nunn, Jr.</B><BR>Class II<BR>Age 61<BR>
Director since December 1999<BR>Board Committees: Finance,
Nominating, Audit</TD>
<TD></TD>
<TD valign="top">
Mr. Nunn is a senior partner in the Atlanta law firm of
King & Spalding, where he focuses his practice on
international and corporate matters. From 1972 through 1996, he
served as a United States Senator from Georgia. During his tenure
as Senator, he served as Chairman of the Senate Armed Services
Committee and the Permanent Subcommittee on Investigations.
Mr. Nunn also served on the Intelligence and Small Business
Committees. Mr. Nunn serves on the boards of directors of
The Coca-Cola Company, General Electric Company, Internet
Security Systems Group, Inc., National Service
Industries Inc., Scientific-</TD>
</TR>
</TABLE>
<P align="center">4
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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="36%"></TD>
<TD width="1%"></TD>
<TD width="63%"></TD>
</TR>
<TR>
<TD valign="top">
</TD>
<TD></TD>
<TD valign="top">
Atlanta, Inc., Texaco Inc. and Total System
Services, Inc.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Mary Alice Taylor</B><BR>Class I<BR>Age: 50<BR>Director since
March 1999<BR>Board committees: Finance</TD>
<TD></TD>
<TD valign="top">
Ms. Taylor is the Chairman and Chief Executive Officer of
HomeGrocer.com. Prior to joining HomeGrocer.com, she was the
Corporate Executive Vice President for global operations and
technology for Citigroup, a position she held from January 1997
through September 1999. Ms. Taylor joined Citigroup
following a 16-year career with Federal Express Corp., where she
held a variety of finance and operating positions, finally
serving as senior vice president for the Americas and Caribbean.
She also serves on the board of directors of Autodesk Inc.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR>
<TD valign="top">
<B>Morton L. Topfer</B><BR>Class III<BR>Age 63<BR>Director
since December 1999<BR>No Board Committees</TD>
<TD></TD>
<TD valign="top">
Mr. Topfer joined Dell in June 1994 as Vice Chairman and
became Counselor to the CEO in December 1999, concurrent with his
appointment to the Board. Mr. Topfer advises in matters of
critical importance such as operations, quality and customer
experience issues. For 23 years prior to joining Dell,
Mr. Topfer held various positions with Motorola, Inc.,
last serving as Corporate Executive Vice President and President
of the Land Mobile Products Sector. Mr. Topfer holds a
bachelor’s degree in Physics from Brooklyn College and
serves on the board of directors of British Sky
Broadcasting Ltd.</TD>
</TR>
</TABLE>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link2 "Committees" -->
<DIV align="left"><A NAME="006"></A></DIV>
<DIV align="left"><B>Committees</B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
The Board maintains four standing committees: Audit,
Compensation, Finance and Nominating.
<P align="left">
<I>Audit Committee. </I>The Audit Committee’s primary duties
include (1) recommending the appointment of independent
accountants and determining the appropriateness of their fees,
(2) reviewing the scope and results of the audit plans of
the independent accountants and internal auditors,
(3) overseeing the scope and adequacy of internal accounting
control and record-keeping systems, (4) reviewing the
objectivity, effectiveness and resources of the internal audit
function and (5) conferring independently with the
independent accountants.
<P align="center">5
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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left">
<I>Compensation Committee. </I>The main responsibilities of the
Compensation Committee include (1) determining the
compensation for senior management, (2) establishing
compensation policies for Dell’s employees generally and
(3) administering Dell’s stock-based compensation
plans.
<P align="left">
<I>Finance Committee. </I>The Finance Committee is primarily
responsible for considering and recommending to the full Board
proposed strategies, policies and actions related to all areas of
corporate finance.
<P align="left">
<I>Nominating Committee. </I>The responsibilities of the
Nominating Committee include recruiting and recommending
candidates for director positions and recommending to the
Chairman of the Board the structure and membership of the Board
committees.
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link2 "Meetings and Attendance" -->
<DIV align="left"><A NAME="007"></A></DIV>
<DIV align="left"><B>Meetings and Attendance</B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
During fiscal year 2000, the full Board held seven meetings,
the Audit Committee met four times, the Compensation Committee
met five times, the Finance Committee met six times and the
Nominating Committee met once. All directors attended at least
75% of the meetings of the full Board and the meetings of the
committees on which they served.
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link2 "Director Compensation" -->
<DIV align="left"><A NAME="008"></A></DIV>
<DIV align="left"><B>Director Compensation</B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
Mr. Dell and Mr. Topfer, who are the only directors
that are also Dell employees, do not receive any additional
compensation for serving on the Board of Directors.
<P align="left">
<I>Annual Retainer Fee. </I>Each non-employee director receives
an annual retainer fee of $40,000. The director can receive that
amount in cash, can defer all or a portion of it into a deferred
compensation plan or can receive stock options instead. Amounts
deferred into the deferred compensation plan are payable in a
lump sum or in installments beginning upon termination of service
as a director. The number of options received in lieu of the
annual retainer fee (or the method of computing the number) and
the terms and conditions of those options are determined from
time to time by the Compensation Committee.
<P align="left">
<I>Option or Stock Awards. </I>The non-employee directors are
also eligible for stock option and restricted stock awards. The
number of options or shares awarded is within the discretion of
the Compensation Committee, except that (1) no non-employee
director may receive awards covering more than 40,000 shares
of stock in any year (other than the year the director joins the
Board, when the limit is three times the normal annual limit)
and (2) no more than 20% of the awards granted to a
non-employee director during a year may consist of restricted
stock. The Compensation Committee also has the discretion to
establish the other terms and conditions of the awards, such as
vesting and exercisability schedules and termination provisions,
subject to the following limitations:
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="4%"></TD>
<TD width="2%"></TD>
<TD width="94%"></TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>• </TD>
<TD align="left">
The exercise price of any option cannot be less than the fair
market value of the stock on the date of grant</TD>
</TR>
</TABLE>
<P align="center">6
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="4%"></TD>
<TD width="2%"></TD>
<TD width="94%"></TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>• </TD>
<TD align="left">
No option can become exercisable, and no share of restricted
stock can become transferable, earlier than six months from the
date of grant</TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>• </TD>
<TD align="left">
No option can be “repriced” if the effect would be to
reduce the exercise price per share</TD>
</TR>
</TABLE>
<P align="left">
<I>Other Benefits. </I>Dell reimburses directors for the
reasonable expenses associated with attending Board meetings and
provides them with liability insurance coverage for their
activities as directors of Dell.
<P align="left">
<I>Compensation During Fiscal 2000. </I>The following table
describes the compensation paid to the non-employee directors for
the last fiscal year. Mr. Nunn became a director in
December 1999 and did not receive any compensation last year.
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="70%"> </TD>
<TD width="3%"> </TD>
<TD width="6%"> </TD>
<TD width="1%"> </TD>
<TD width="5%"> </TD>
<TD width="3%"> </TD>
<TD width="6%"> </TD>
<TD width="1%"> </TD>
<TD width="5%"> </TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Cash</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Options</B></FONT></TD>
</TR>
<TR>
<TD align="center" nowrap><FONT size="2"><B>Name</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Payments</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Granted<SUP>a</SUP></B></FONT></TD>
</TR>
<TR>
<TD colspan="9"></TD>
</TR>
<TR>
<TD align="center" nowrap colspan="9"><HR size="1"></TD>
</TR>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Carty</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">40,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16,284</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Jordan</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">40,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16,284</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Luce<SUP>b</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17,957</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Luft</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">40,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16,284</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Ms. Malone</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">40,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16,284</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Mandl<SUP>b</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17,957</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Miles<SUP>b</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17,957</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Ms. Taylor<SUP>b</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17,957</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Paul O. Hirschbiel, Jr.<SUP>c</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">40,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16,284</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<DIV align="left"><HR size="1" width="100%" align="left">
</DIV>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="2%"></TD>
<TD width="98%"></TD>
</TR>
<TR valign="top">
<TD>a – </TD>
<TD align="left">
Effective July 16, 1999, each non-employee director received
options to purchase 16,284 shares of common stock with an
exercise price of $43.91 per share. The options vest and
become exercisable ratably over five years (20% per year),
so long as the director remains a member of the Board. The
options terminate when the director ceases to be a member of the
Board (if the Board demands or requests the director’s
resignation), 90 days after the director ceases to be a
member of the Board (if the director resigns for any other
reason) or one year after the director ceases to be a member of
the Board because of death or permanent disability. In any event,
the options terminate ten years from the date of grant. The
options are transferable to family members under specified
conditions.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>b – </TD>
<TD align="left">
Elected to receive options in lieu of the retainer. The number of
options granted (1,673) was determined by dividing the foregone
retainer amount by the value of an option for one share of common
stock (calculated using a Black-Scholes model), and the exercise
price was set at the market value of the common stock on the
date of grant ($43.91). The options are fully vested, but they
become exercisable ratably over five years (20% per year).
The options terminate on the tenth anniversary of the date of
grant.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>c – </TD>
<TD align="left">
Mr. Hirschbiel retired from the Board in March 2000.</TD>
</TR>
</TABLE>
<P align="center">7
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<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link2 "Executive Compensation" -->
<DIV align="left"><A NAME="009"></A></DIV>
<DIV align="left"><B><FONT size="4">EXECUTIVE COMPENSATION</FONT></B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link3 "Compensation Committee Report" -->
<DIV align="left"><A NAME="010"></A></DIV>
<DIV align="left"><B>Compensation Committee Report</B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
Dell’s mission is to be the most successful computer company
in the world by delivering the best customer experience in the
markets we serve. To accomplish this objective, Dell has
developed a comprehensive business strategy that emphasizes
maximizing long-term stockholder value through superior financial
performance, quality and customer and employee satisfaction.
<!-- link3 "Compensation Philosophy" -->
<DIV align="left"><A NAME="011"></A></DIV>
<P align="left"><B>Compensation Philosophy</B>
<P align="left">
The Compensation Committee of the Board of Directors is committed
to implementing a compensation program that furthers Dell’s
mission. Our Committee therefore adheres to the following
compensation policies, which are designed to support the
achievement of Dell’s business strategies:
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="4%"></TD>
<TD width="2%"></TD>
<TD width="94%"></TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>• </TD>
<TD align="left">
Executives’ total compensation programs should strengthen
the relationship between pay and performance by emphasizing
variable, at-risk compensation that is dependent upon the
successful achievement of specified corporate, business unit and
individual performance goals.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>• </TD>
<TD align="left">
A significant amount of pay for senior executives should be
comprised of long- term, at-risk pay to focus management on the
long-term interests of stockholders.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>• </TD>
<TD align="left">
The at-risk components of pay should be comprised primarily of
equity-based pay opportunities. Encouraging a personal
proprietary interest provides executives with a close
identification with Dell and aligns executives’ interests
with those of the stockholders. This promotes a continuing focus
on building profitability and stockholder value.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>• </TD>
<TD align="left">
Total compensation opportunities should enhance Dell’s
ability to attract, retain and develop exceptionally
knowledgeable and experienced executives upon whom, in large
part, the successful operation and management of Dell depends.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD>• </TD>
<TD align="left">
Base compensation should be targeted at the median of
compensation paid to executives of similar high-tech companies.
However, if Dell’s performance exceeds that of its peers,
total compensation should be paid above market median,
commensurate with the level of success achieved.</TD>
</TR>
</TABLE>
<P align="left">
Our Committee compares total compensation levels for Dell’s
senior executives to the compensation paid to executives of a
peer group of similar high-tech companies. Each year, management
develops the peer group based on similar sales volumes, market
capitalization, employment levels and lines of business, and we
review and approve that selection. For fiscal 2000, the peer
group consisted of
<P align="center">8
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<DIV align="left">
approximately 25 companies, and was changed from the prior
year to reflect Dell’s growth and current strategic focus.
This group is not the same group used for the industry comparison
in the performance graph found in “Company
Performance” since it includes additional companies that
Dell competes with for people talent in addition to
industry-product competitors.
</DIV>
<P align="left">
Internal Revenue Code Section 162(m) generally limits the
U.S. corporate income tax deduction for compensation paid to
certain executive officers to $1 million, unless the
compensation is “performance based compensation” or
qualifies under certain other exceptions. In designing
Dell’s compensation programs, our Committee carefully
considers the effect of this provision together with other
factors relevant to the needs of the business. We have
historically taken, and intend to continue taking, such steps as
we deem reasonably practicable to minimize the impact of
Section 162(m).
<P align="left"><B>Components of Compensation</B>
<P align="left">
The key elements of Dell’s executive compensation program
are base salary, short-term (annual) incentive and long-term
incentive compensation. These elements are addressed separately
below.
<P align="left">
Our Committee does not exclusively use quantitative methods or
mathematical formulas in setting any element of compensation. In
determining each component of compensation, we consider all
elements of a senior executive’s total compensation package,
including insurance and other benefits.
<P align="left">
<I>Base Salaries. </I>Base salaries are targeted at median levels
for the peer group of companies and are adjusted to recognize
varying levels of responsibility, individual performance,
business unit performance and internal equity issues, as well as
external pay practices. We review each senior executive’s
base salary annually.
<P align="left">
<I>Short-Term Incentives. </I>Short-term incentives for fiscal
2000 were paid pursuant to Dell’s Executive Incentive Bonus
Plan. This plan was designed to comply with the performance-based
compensation exemption under Internal Revenue Code
Section 162(m) and was approved by stockholders at the 1998
annual meeting.
<P align="left">
Under this plan, our Committee establishes a specific annual
performance target for each executive officer. The performance
target is represented as a specific percentage of consolidated
net income and may not exceed 0.5%. We have the discretion to
reduce (but not increase) an executive’s bonus amount from
the amount that would otherwise be payable under the established
performance target. Although the plan does not specify factors
our Committee will evaluate, we evaluate among other things
overall company and business unit financial performance, as well
as non-financial company performance, in determining the
appropriate final incentive bonus payout for each executive.
<P align="left">
For fiscal 2000, our Committee established a specific percentage
of consolidated net income for each executive officer. At the end
of the year, we certified that the performance targets had been
achieved and that incentive bonus amounts could be paid. In
determining the actual incentive bonus amount to be paid to each
executive officer, we considered several factors, including
company and business unit revenue growth, return on invested
capital, return on sales and non-financial performance
<P align="center">9
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<DIV align="left">
relating to improvements in customer satisfaction. Based on an
evaluation of these factors, we modified bonus payout amounts.
The amounts paid to the Named Executive Officers is set forth in
the Summary Compensation Table.
</DIV>
<P align="left">
<I>Long-Term Incentives. </I>In keeping with Dell’s
philosophy of providing a total compensation package that favors
at-risk components of pay, long-term incentives comprise a
significant component of a senior executive’s total
compensation package. These incentives are designed to motivate
and reward executives for maximizing stockholder value and
encourage the long-term employment of key employees.
<P align="left">
When awarding long-term incentives, our Committee considers an
executive’s level of responsibility, prior experience,
individual performance criteria and previous stock option grants,
as well as the compensation practices of the peer group of
companies used to evaluate total compensation. Our objective is
to provide executives with above-average long-term incentive
award opportunities. Actual long-term incentive gains are
designed to be highly leveraged if Dell’s stockholder
returns exceed industry norms.
<P align="left">
The size of stock option grants is based primarily on the dollar
value of the award granted. As a result, the number of shares
underlying stock option awards varies and is dependent on the
price of Dell’s common stock on the date of grant. The size
of the award can also be adjusted based on individual factors.
<P align="left">
In September 1999, stock options with an exercise price set at
fair market value were granted for fiscal 2000 as part of
Dell’s regular annual stock option grant. The size of each
award was determined based on the criteria for awarding long-term
incentives stated above. These stock options generally vest
ratably over five years (20% per year).
<P align="left">
Because the exercise price of these options is equal to the fair
market value of Dell’s common stock on the date of grant,
the options have value only if the stock price appreciates from
the value on the date the options were granted. This design is
intended to focus executives on the enhancement of stockholder
value over the long-term and to encourage equity ownership in
Dell.
<P align="left">
Also, on March 24, 2000, stock options with an exercise
price set at 80% of fair market value were granted to
11 executive officers under Dell’s Executive Stock
Ownership Incentive Program. This program allows executives to
elect to forego all or a portion of their pretax annual bonus
payouts and receive discounted options. Because of the inherent
risk in foregoing a cash payment to receive an option grant, the
number of shares granted is calculated by dividing the foregone
bonus amount by the amount of the discount (20% of the fair
market value of the common stock on the grant date). Although the
foregone cash payments would have been unrestricted, the
discounted options are subject to a three-year vesting schedule.
<P align="left">
Our Committee also approved grants of restricted stock to key
employees who joined Dell during fiscal 2000. These grants were
required to attract these individuals to Dell and were intended
to replace the long-term incentives they forfeited when they left
their previous employers.
<P align="center">10
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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><B>Compensation of the Chief Executive Officer</B>
<P align="left">
In fiscal 2000, Mr. Dell’s annualized base salary
remained at $850,000 and no increase was provided despite the
company’s continued strong financial performance.
Mr. Dell’s salary is below the median base salary
earnings for chief executive officers of the peer group of
companies. Our Committee continues to focus on the
performance-based elements of Mr. Dell’s compensation
package, with less emphasis on fixed base pay.
<P align="left">
As a result of the Company’s performance in fiscal 2000,
Mr. Dell received an incentive bonus equal to 197% of his
base salary.
<P align="left">
In September 1999, Mr. Dell received a stock option grant of
805,595 shares. These options vest ratably over five years
(20% per year)and have an exercise price equal to the fair
market value of the common stock on the date of grant. We granted
the options in recognition of Mr. Dell’s continued
leadership and vision, which has contributed significantly to the
company’s exceptional long-term performance in creating
stockholder value.
<P align="left"><B>Conclusion</B>
<P align="left">
We believe these executive compensation policies and programs
serve the interests of stockholders and Dell effectively. The
various pay vehicles offered are carefully designed to provide
increased motivation for senior executives to contribute to
Dell’s overall future success, thereby enhancing the value
of Dell for the stockholders’ benefit.
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="36%"></TD>
<TD width="64%"></TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD align="left">
THE COMPENSATION COMMITTEE</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD align="left">
DONALD J. CARTY, Chairman</TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD align="left">
THOMAS W. LUCE III</TD>
</TR>
<TR valign="top">
<TD> </TD>
<TD align="left">
KLAUS S. LUFT</TD>
</TR>
</TABLE>
<DIV> </DIV>
<!-- link3 "Compensation Committee Interlocks and Insider Participation" -->
<DIV align="left"><A NAME="012"></A></DIV>
<P align="left"><B>Compensation Committee Interlocks and Insider Participation
</B>
<P align="left">
Neither Mr. Carty, Mr. Luce nor Mr. Luft is an
officer or employee, or former officer or employee, of Dell or
any of its subsidiaries. No interlocking relationship exists
between the members of Dell’s Board or Compensation
Committee and the board of directors or compensation committee of
any other company, nor has any such interlocking relationship
existed in the past.
<P align="center">11
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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link3 "Summary Compensation Table" -->
<DIV align="left"><A NAME="013"></A></DIV>
<DIV align="left"><B>Summary Compensation Table</B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
The following table summarizes the total compensation, for each
of the last three fiscal years, for Mr. Dell and the four
other most highly compensated executive officers who were serving
as executive officers at the end of fiscal 2000. These persons
are referred to as the “Named Executive Officers.”
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="3%"> </TD>
<TD width="22%"> </TD>
<TD width="3%"> </TD>
<TD width="2%"> </TD>
<TD width="1%"> </TD>
<TD width="2%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="1%"> </TD>
<TD width="2%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="1%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="1%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="6%"> </TD>
<TD width="1%"> </TD>
<TD width="6%"> </TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Long-Term</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Compensation Awards</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="11"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>Annual Compensation</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Restricted</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>
<TR>
<TD align="center" nowrap colspan="2"><FONT size="2"><B>Name and</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Fiscal</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Stock</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Underlying</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>All Other</B></FONT></TD>
</TR>
<TR>
<TD align="center" nowrap colspan="2"><FONT size="2"><B>Principal Position</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Year</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Salary</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Bonus<SUP>a</SUP></B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Other<SUP>b</SUP></B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Awards<SUP>c</SUP></B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Options<SUP>d</SUP></B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Compensation<SUP>e</SUP></B></FONT></TD>
</TR>
<TR>
<TD colspan="30"></TD>
</TR>
<TR>
<TD align="center" nowrap colspan="30"><HR size="1"></TD>
</TR>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Michael S. Dell</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">850,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,670,250</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">805,595</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">107,966</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Chairman of the Board,</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">844,231</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,615,005</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12,800,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">86,185</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Chief Executive Officer</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1998</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">788,462</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,000,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12,800,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">65,549</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Morton L. Topfer</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">700,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,240,350</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">290,910</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">31,032</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Counselor to the CEO</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">691,346</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,927,301</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">259,540</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30,227</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1998</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">616,346</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,000,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">600,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">28,681</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Kevin B. Rollins</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">613,461</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,087,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">290,910</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9,577</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Vice Chairman</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">550,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,533,262</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">259,540</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6,540</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1998</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">450,381</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,125,953</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">141,206</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,600,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">34,320</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
James T. Vanderslice, Ph.D.</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">69,231</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,000,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">37,575,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,500,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">906</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Vice Chairman</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1998</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Thomas J. Meredith</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">435,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">570,940</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">78,320</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17,245</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Senior Vice President,</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">432,115</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">892,318</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">86,520</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14,294</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Chief Financial Officer</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1998</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">408,288</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,020,719</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">320,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11,315</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<DIV align="left"><HR size="1" width="100%" align="left">
</DIV>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="2%"></TD>
<TD width="98%"></TD>
</TR>
<TR valign="top">
<TD>a – </TD>
<TD align="left">
In each case (except for Mr. Dell in fiscal 1999 and 1998
and Dr. Vanderslice in fiscal 2000), the executive elected
to receive options in lieu of this annual bonus amount under the
Executive Stock Ownership Incentive Program. This program is
described in note c to the table below entitled “Option
Grants in Last Fiscal Year”. The amount shown for
Dr. Vanderslice for fiscal 2000 represents the cash bonus he
received upon commencement of his employment.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>b – </TD>
<TD align="left">
Includes the cost of providing various perquisites and personal
benefits if the amount exceeds $50,000 in any year. The amount
shown for Mr. Rollins in fiscal 1998 includes $128,816 for
relocation expenses and reimbursement of the related tax
liability and $12,390 for personal financial counseling and tax
planning services.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>c – </TD>
<TD align="left">
The amount shown for Dr. Vanderslice in fiscal 2000
represents the value of 900,000 shares of restricted stock
awarded to him upon commencement of his employment on
December 13, 1999. That value was calculated using the
closing price of the common stock on the date of grant ($41.75).
The shares vest ratably over three years (one-third per year).</TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>
<TR valign="top">
<TD></TD>
<TD align="left">
At the end of fiscal 2000, Dr. Vanderslice held
900,000 shares of restricted stock valued at $33,525,000 and
Mr. Meredith held 136,960 shares of restricted stock
valued at $5,101,760. These values were calculated using the
closing price of the common stock on the last trading day of the
year ($37.25). Dividends are payable on the shares of restricted
stock if and when declared by the Board at the same rate as they
are paid to all common stockholders. Neither Mr. Dell,
Mr. Topfer nor Mr. Rollins held any shares of
restricted stock at the end of fiscal 2000.</TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="2%"></TD>
<TD width="98%"></TD>
</TR>
<TR valign="top">
<TD>d – </TD>
<TD align="left">
Does not include options granted in lieu of annual bonus under
the Executive Stock Ownership Incentive Program (see note a). For
information regarding the stock option grants made during fiscal
2000, see the table below entitled “Option Grants in Last
Fiscal Year.”</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>e – </TD>
<TD align="left">
Includes the value of the company’s contributions to the
company-sponsored 401(k) plan and deferred compensation plan and
the amount paid by the company for term life insurance coverage
under health and welfare plans.</TD>
</TR>
</TABLE>
<P align="center">12
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link3 "Stock Options" -->
<DIV align="left"><A NAME="014"></A></DIV>
<DIV align="left"><B>Stock Options</B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
The following table sets forth certain information about the
stock option awards that were made to the Named Executive
Officers during fiscal 2000. All of these options are
transferable to family members under specified conditions.
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link4 "OPTION GRANTS IN LAST FISCAL YEAR" -->
<DIV align="left"><A NAME="015"></A></DIV>
<DIV align="center"><B>OPTION GRANTS IN LAST FISCAL YEAR</B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="23%"> </TD>
<TD width="3%"> </TD>
<TD width="5%"> </TD>
<TD width="1%"> </TD>
<TD width="4%"> </TD>
<TD width="3%"> </TD>
<TD width="6%"> </TD>
<TD width="1%"> </TD>
<TD width="5%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="4%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="5%"> </TD>
<TD width="1%"> </TD>
<TD width="5%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="4%"> </TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percentage</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number of</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>of Total</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Options</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Underlying</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Granted to</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercise</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Grant Date</B></FONT></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Options</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Employees In</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Price</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Grant</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Expiration</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Present</B></FONT></TD>
</TR>
<TR>
<TD align="center" nowrap><FONT size="2"><B>Name</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Granted</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Fiscal Year</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Per Share</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Date</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Date</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Value<SUP>a</SUP></B></FONT></TD>
</TR>
<TR>
<TD colspan="25"></TD>
</TR>
<TR>
<TD align="center" nowrap colspan="25"><HR size="1"></TD>
</TR>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Dell</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">805,595</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>b</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.55</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">44.69</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9/23/99</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9/23/09</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13,969,017</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Topfer</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">253,382</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>c</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0.49</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.43</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3/26/99</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3/26/09</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,435,044</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">290,910</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>b</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0.56</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">44.69</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9/23/99</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9/23/09</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,044,379</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Rollins</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">201,577</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>c</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0.39</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.43</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3/26/99</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3/26/09</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,323,827</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">290,910</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>b</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0.56</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">44.69</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9/23/99</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9/23/09</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,044,379</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Dr. Vanderslice</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,500,000</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>b</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.90</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">41.41</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12/13/99</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12/13/09</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">24,210,000</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Meredith</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">117,313</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>c</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0.23</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.43</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3/26/99</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3/26/09</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,516,364</FONT></TD>
<TD></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">78,320</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>b</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0.15</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">44.69</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9/23/99</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9/23/09</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,358,069</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<DIV align="left"><HR size="1" width="100%" align="left">
</DIV>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="2%"></TD>
<TD width="98%"></TD>
</TR>
<TR valign="top">
<TD>a – </TD>
<TD align="left">
Calculated using the Black-Scholes model with the following
material assumptions and adjustments: (1) an interest rate
equal to the rate on U.S. Treasury securities with a
maturity date corresponding to the assumed option term of five
years; (2) volatility determined using daily stock prices
during the five-year period immediately preceding date of grant;
(3) a dividend rate of $0; and (4) in each case (other
than the options described in note c), a reduction of 25% to
reflect the probability of forfeiture due to termination of
employment prior to vesting and the probability of a shortened
option term due to termination of employment prior to the option
expiration date. The actual value realized will depend on the
difference between the market value of the common stock on the
date the option is exercised and the exercise price.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>b – </TD>
<TD align="left">
These options vest and become exercisable ratably over five years
(20% per year).</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>c – </TD>
<TD align="left">
These options were granted as a part of the Executive Stock
Ownership Incentive Program, under which the executives can elect
to receive options in lieu of their annual bonus. The exercise
price of the options is 80% of the fair market value of the
common stock on the date of grant, and the number of shares
awarded is calculated by dividing the designated bonus amount by
20% of the fair market value of the common stock on the date
of grant. The awards shown were granted in lieu of the 1999
annual bonus amounts shown in the “Summary Compensation
Table” above. These options vest and become exercisable with
respect to 25% of the underlying shares on each of the first two
anniversaries of the date of grant and the remaining 50% on the
third anniversary of the date of grant.</TD>
</TR>
</TABLE>
<P align="center">13
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left">
The following table sets forth certain information about option
exercises during fiscal 2000 by the Named Executive Officers and
the value of their unexercised options at the end of the year.
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link4 "AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR AND FISCAL YEAR-END OPTION VALUES" -->
<DIV align="left"><A NAME="016"></A></DIV>
<DIV align="center"><B>AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR</B>
</DIV>
<DIV align="center">
<B>AND FISCAL YEAR-END OPTION VALUES</B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="25%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="4%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="4%"> </TD>
<TD width="3%"> </TD>
<TD width="5%"> </TD>
<TD width="1%"> </TD>
<TD width="5%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="4%"> </TD>
<TD width="3%"> </TD>
<TD width="5%"> </TD>
<TD width="1%"> </TD>
<TD width="5%"> </TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Number of Shares</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Value of Unexercised</B></FONT></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Underlying Unexercised</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>In-the-Money Options</B></FONT></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Options at Fiscal Year-End</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>at Fiscal Year-End<SUP>b</SUP></B></FONT></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Acquired</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Value</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>
<TR>
<TD align="center" nowrap><FONT size="2"><B>Name</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>On Exercise</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Realized<SUP>a</SUP></B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercisable</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Unexercisable</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercisable</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Unexercisable</B></FONT></TD>
</TR>
<TR>
<TD colspan="25"></TD>
</TR>
<TR>
<TD align="center" nowrap colspan="25"><HR size="1"></TD>
</TR>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Dell</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,000,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">233,283,432</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10,936,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">25,189,595</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">340,467,840</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">604,820,480</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Topfer</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,028,500</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">154,781,655</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,663,782</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,693,166</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">59,396,137</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">177,507,515</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Rollins</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,550,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">64,367,900</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,773,588</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6,000,023</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">90,503,649</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">185,463,369</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Dr. Vanderslice</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,500,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
Mr. Meredith</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,084,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">41,522,615</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,591,976</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,997,353</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">88,189,186</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">62,893,781</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<DIV align="left"><HR size="1" width="100%" align="left">
</DIV>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="2%"></TD>
<TD width="98%"></TD>
</TR>
<TR valign="top">
<TD>a – </TD>
<TD align="left">
If the shares were sold immediately upon exercise, the value
realized was calculated using the difference between the actual
sales price and the exercise price. Otherwise, the value realized
was calculated using the difference between the closing price of
the common stock on the date of exercise and the exercise price.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>b – </TD>
<TD align="left">
Amounts were calculated using the closing price of the common
stock in the last trading day of year ($37.25).</TD>
</TR>
</TABLE>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link3 "Other Benefits" -->
<DIV align="left"><A NAME="017"></A></DIV>
<DIV align="left"><B>Other Benefits</B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
<I>401(k) Retirement Plan.</I> Dell maintains a 401(k) retirement
savings plan that is available to substantially all
U.S. employees. Under the terms of the plan, Dell matches
100% of each participant’s voluntary contributions up to 3%
of the participant’s compensation. A participant vests
ratably in the matching contributions over the first five years
of employment (20% per year).
<P align="left">
<I>Deferred Compensation Plan. </I>Dell also maintains a
nonqualified deferred compensation plan that is available to
executives. Under the terms of this plan, Dell matches 100% of
each participant’s voluntary contributions up to 3% of the
participant’s compensation. A participant vests ratably in
the matching contributions over the first five years of
employment (20% per year). Upon a participant’s death
or retirement, the funds are distributed in a lump sum or in
annual, quarterly or monthly installments over a period of up to
ten years.
<P align="left">
<I>Employee Stock Purchase Plan. </I>Dell maintains an employee
stock purchase plan that is available to substantially all
employees. Participating employees may purchase common stock at
the end of each participation period at a purchase price equal to
85% of the lower of the fair market value of the stock at
the beginning or the end of the period. The six-month
participation periods run from January to June and from July to
December each year. Employees may contribute up to 15% of
their base compensation to the plan.
<P align="center">14
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link3 "Employment Agreements and Change-in-Control Arrangements" -->
<DIV align="left"><A NAME="018"></A></DIV>
<DIV align="left"><B>Employment Agreements and Change-in-Control Arrangements</B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
Substantially all of Dell’s employees enter into a standard
employment agreement upon commencement of their employment. The
standard employment agreement deals mainly with intellectual
property and confidential and proprietary information matters and
does not contain provisions regarding compensation or continued
employment. Dr. Vanderslice’s agreement contains a
special termination of employment clause. Under that agreement,
if Dell desires to terminate Dr. Vanderslice’s
employment other than for “cause” at any time within
the first three years, it must give Dr. Vanderslice
15 months’ advance notice of the termination. During
that 15-month notice period, Dr. Vanderslice’s then
current salary and benefits (including scheduled vesting of
equity awards) will be continued. If, at the end of that period,
Dell’s average daily market capitalization for the
immediately preceding twelve months is less than
$165 billion, then Dell will pay Dr. Vanderslice
$35 million (if the termination notice is given within the
first year of employment), $20 million (if the termination
notice is given within the second year of employment) or
$10 million (if the termination notice is given within the
third year of employment). After the third year of employment,
Dr. Vanderslice’s employment will be “at
will” and can be terminated at any time with or without
cause.
<P align="left">
The Compensation Committee has the authority under Dell’s
stock plans to issue awards with provisions that accelerate
vesting and exercisability in the event of a change-in-control
and to amend existing awards to provide for such acceleration. To
date, the Compensation Committee has not elected to include
change-in-control acceleration provisions in any awards.
<P align="center">15
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link2 "Five-Year Performance Graph" -->
<DIV align="left"><A NAME="019"></A></DIV>
<DIV align="left"><B><FONT size="4">FIVE-YEAR PERFORMANCE GRAPH</FONT></B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
The following graph compares the cumulative total return on
Dell’s common stock during the last five fiscal years with
the S&P 500 Index and the S&P Computer Systems
Index during the same period. The graph shows the value, at the
end of each of the last five fiscal years, of $100 invested in
Dell common stock or the indices on January 29, 1995 and
assumes the reinvestment of all dividends. The graph depicts the
change in the value of common stock relative to the indices as of
the end of each fiscal year and not for any interim period.
Historical stock price performance is not necessarily indicative
of future stock price performance.
<P align="center">
[PERFORMANCE GRAPH]
<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="32%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="4%"> </TD>
<TD width="1%"> </TD>
<TD width="3%"> </TD>
<TD width="3%"> </TD>
<TD width="5%"> </TD>
<TD width="1%"> </TD>
<TD width="4%"> </TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD colspan="23"></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="23"><FONT size="2"><B>End of Fiscal Year</B></FONT></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="23"><HR size="1"></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1995</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1996</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>
<TR>
<TD align="left" valign="top"><FONT size="2">
Dell</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">131</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">633</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,901</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7,642</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,693</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
S&P 500</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">136</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">175</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">228</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">295</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">317</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD align="left" valign="top"><FONT size="2">
S&P Computer Systems Index</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">143</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">201</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">273</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">555</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">687</FONT></TD>
<TD></TD>
</TR>
</TABLE>
</CENTER>
<P align="center">16
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link2 "Stock Ownership" -->
<DIV align="left"><A NAME="020"></A></DIV>
<DIV align="left"><B><FONT size="4">STOCK OWNERSHIP</FONT></B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<P align="left">
The following table sets forth certain information, as of
April 28, 2000, about the ownership of Dell common stock by
the directors and executive officers. The company knows of no
person, other than Mr. Dell, who owns more than 5% of the
total number of shares outstanding. Unless otherwise indicated,
each person named below holds sole investment and voting power
over the shares shown.
<P align="left">
<HR size="1" width="100%" align="left">
<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="3%"> </TD>
<TD width="26%"> </TD>
<TD width="3%"> </TD>
<TD width="7%"> </TD>
<TD width="1%"> </TD>
<TD width="6%"> </TD>
<TD width="3%"> </TD>
<TD width="6%"> </TD>
<TD width="1%"> </TD>
<TD width="6%"> </TD>
<TD width="3%"> </TD>
<TD width="6%"> </TD>
<TD width="1%"> </TD>
<TD width="6%"> </TD>
<TD width="3%"> </TD>
<TD width="9%"> </TD>
<TD width="1%"> </TD>
<TD width="9%"> </TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Options</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Total as a</B></FONT></TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number of</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exercisable</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Total</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percentage of</B></FONT></TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Within 60</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Beneficial</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares</B></FONT></TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Owned</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Days</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Ownership</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Outstanding</B></FONT></TD>
</TR>
<TR>
<TD align="center" nowrap colspan="2"><FONT size="2"><B>Beneficial Owner</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>(if 1% or more)<SUP>a</SUP></B></FONT></TD>
</TR>
<TR>
<TD colspan="18"></TD>
</TR>
<TR>
<TD align="center" nowrap colspan="18"><HR size="1"></TD>
</TR>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Michael S. Dell</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">307,354,192</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>b</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14,136,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">321,490,192</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>
<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
One Dell Way</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>
<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Round Rock, Texas 78682</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Donald J. Carty</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,002,898</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,002,898</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Michael H. Jordan</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">138,886</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">947,698</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,086,584</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Thomas W. Luce III</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49,476</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49,476</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Klaus S. Luft</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">855,236</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">855,236</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Claudine B. Malone</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">325,200</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,498</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">329,698</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Alex J. Mandl</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">400</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>c</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">103,387</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">103,787</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Michael A. Miles</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">558,581</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>d</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,595,813</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,154,394</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Samuel A. Nunn, Jr. </FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Mary Alice Taylor</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10,090</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11,569</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">21,659</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Morton L. Topfer</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,316,473</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>e</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,250,627</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,567,100</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Kevin B. Rollins</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10,478</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,458,982</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,469,460</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
James T. Vanderslice, Ph.D.</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">900,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">900,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Thomas J. Meredith</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,652,473</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2"><SUP>f</SUP></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,741,304</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6,393,777</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">—</FONT></TD>
<TD></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Directors and executive officers as a group (27 persons)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">321,276,491</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">29,658,852</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">350,935,303</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><HR size="1" width="100%" align="left">
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="2%"></TD>
<TD width="98%"></TD>
</TR>
<TR valign="top">
<TD>a – </TD>
<TD align="left">
Based on the number of shares outstanding (2,588,917,607) at the
close of business on April 28, 2000.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>b – </TD>
<TD align="left">
Does not include 2,058,000 shares held in a trust of which
Mr. Dell is the grantor, 6,080,000 shares held in a
trust of which Mr. Dell’s spouse is the grantor or
38,309,112 shares held in a personal income trust for
Mr. Dell’s spouse. It does include
1,200,000 shares held in a private charitable foundation.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>c – </TD>
<TD align="left">
Held by Mr. Mandl’s spouse.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>d – </TD>
<TD align="left">
Includes 160,000 shares held by Mr. Miles’ spouse.</TD>
</TR>
<TR>
<TD> </TD>
</TR>
<TR valign="top">
<TD>e – </TD>
<TD align="left">
Includes 6,144 shares held by Mr. Topfer’s spouse
and 11,776 shares held by a family limited partnership of
which Mr. Topfer is the general partner.</TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="2%"></TD>
<TD width="98%"></TD>
</TR>
<TR valign="top">
<TD>f – </TD>
<TD align="left">
Includes 3,085,662 shares held by a grantor trust of which
Mr. Meredith is the trustee and members of his family are
the beneficiaries.</TD>
</TR>
</TABLE>
<P align="center">17
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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link2 "Other Director and Executive Officer Information" -->
<DIV align="left"><A NAME="021"></A></DIV>
<DIV align="left"><B><FONT size="4">OTHER DIRECTOR AND EXECUTIVE OFFICER
INFORMATION</FONT></B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<!-- link3 "Certain Relationships and Related Party Transactions" -->
<DIV align="left"><A NAME="022"></A></DIV>
<P align="left"><B>Certain Relationships and Related Party Transactions</B>
<P align="left">
Thomas W. Luce III, a director, is affiliated with the
law firm of Hughes & Luce L.L.P., Dallas, Texas,
which provided certain legal services to the company during
fiscal 2000. The dollar amount of fees that Dell paid to that
firm during fiscal 2000 did not exceed 5% of that firm’s
gross revenues for its last full fiscal year.
<!-- link3 "Section 16(a) Beneficial Ownership Reporting Compliance" -->
<DIV align="left"><A NAME="023"></A></DIV>
<P align="left"><B>Section 16(a) Beneficial Ownership Reporting Compliance
</B>
<P align="left">
The December 1999 Form 4’s for Thomas B. Green and
Rosendo G. Parra (each of whom is an executive officer)
were inadvertently filed one day late, on January 11, 2000,
rather than January 10, 2000. In addition, Mr. Parra
failed to report a charitable gift of 34,646 shares on
December 31, 1999 on his Form 5 for fiscal
year 2000. This failure was inadvertent, and the gift has
since been reported on an amended Form 5.
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV> </DIV>
<!-- link2 "Additional Information" -->
<DIV align="left"><A NAME="024"></A></DIV>
<DIV align="left"><B><FONT size="4">ADDITIONAL INFORMATION</FONT></B>
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<DIV align="left">
<HR size="1" width="100%" align="left">
</DIV>
<!-- link3 "Record Date; Shares Outstanding" -->
<DIV align="left"><A NAME="025"></A></DIV>
<P align="left"><B>Record Date; Shares Outstanding</B>
<P align="left">
Stockholders of record at the close of business on May 23,
2000, are entitled to vote their shares at the annual meeting. As
of that date, there were 2,589,696,545 shares of common
stock outstanding and entitled to be voted at the meeting. The
holders of those shares are entitled to one vote per share.
<!-- link3 "Quorum" -->
<DIV align="left"><A NAME="026"></A></DIV>
<P align="left"><B>Quorum</B>
<P align="left">
More than 50% of the stockholders entitled to vote must be
represented at the meeting before any business may be conducted.
If a quorum is not present, the stockholders who are represented
may adjourn the meeting until a quorum is present. The time and
place of the adjourned meeting will be announced at the time the
adjournment is taken, and no other notice need be given. An
adjournment will have no effect on the business that may be
conducted at the meeting.
<!-- link3 "Proxies; Right to Revoke" -->
<DIV align="left"><A NAME="027"></A></DIV>
<P align="left"><B>Proxies; Right to Revoke</B>
<P align="left">
By submitting your proxy, you will authorize Michael S. Dell
and Thomas B. Green to represent you and vote your shares
at the meeting in accordance with your instructions. They may
also vote your shares to adjourn the meeting and will be
authorized to vote your shares at any adjournments or
postponements of the meeting.
<P align="left">
If you attend the meeting, you may vote your shares in person,
regardless of whether you have submitted a proxy. In addition,
you may revoke your proxy by sending a written notice of
revocation to Dell’s Corporate Secretary, by submitting a
later-dated proxy or by voting in person at the meeting.
<P align="center">18
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link3 "Default Voting" -->
<DIV align="left"><A NAME="028"></A></DIV>
<P align="left"><B>Default Voting</B>
<P align="left">
If you submit a proxy but do not indicate any voting
instructions, your shares will be voted FOR the election of all
nominees for director, and if any other business properly comes
before the stockholders for a vote at the meeting, your shares
will be voted according to the discretion of the holders of the
proxy.
<!-- link3 "Tabulation of Votes" -->
<DIV align="left"><A NAME="029"></A></DIV>
<P align="left"><B>Tabulation of Votes</B>
<P align="left">
American Stock Transfer and Trust Company, the transfer agent,
will tabulate and certify the votes.
<P align="left">
If your shares are treated as a broker non-vote, your shares will
be included in the number of shares represented for purposes of
determining whether a quorum is present. Because the election of
directors (the only proposal to be presented) is done by a
plurality of votes, a broker non-vote will have no effect on the
outcome of the vote.
<!-- link3 "Voting by Street Name Holders" -->
<DIV align="left"><A NAME="030"></A></DIV>
<P align="left"><B>Voting by Street Name Holders</B>
<P align="left">
If you are the beneficial owner of shares held in “street
name” by a broker, the broker, as the record holder of the
shares, is required to vote those shares according to your
instructions. If you do not give instructions to the broker, the
broker will be entitled to vote the shares in its discretion.
<!-- link3 "Independent Accountants" -->
<DIV align="left"><A NAME="031"></A></DIV>
<P align="left"><B>Independent Accountants</B>
<P align="left">
The Board has again selected PricewaterhouseCoopers LLP as
independent accountants for fiscal 2001. Representatives of that
firm will be at the meeting to respond to appropriate questions,
and they will have an opportunity to make a statement if they
desire to do so.
<!-- link3 "Proxy Solicitation" -->
<DIV align="left"><A NAME="032"></A></DIV>
<P align="left"><B>Proxy Solicitation</B>
<P align="left">
Dell will bear all costs of this proxy solicitation. Proxies may
be solicited by mail, in person, by telephone or by facsimile by
officers, directors and regular employees. Dell may also
reimburse brokerage firms, custodians, nominees and fiduciaries
for their expenses to forward proxy materials to beneficial
owners.
<!-- link3 "Stockholder Proposals for Next Year’s Meeting" -->
<DIV align="left"><A NAME="033"></A></DIV>
<P align="left"><B>Stockholder Proposals for Next Year’s Meeting</B>
<P align="left">
<I>Inclusion in Next Year’s Proxy Statement.</I> Any
stockholder who desires to present a proposal for consideration
at next year’s annual meeting and to include such proposal
in next year’s proxy statement must deliver the proposal to
Dell’s principal executive offices no later than the close
of business on January 26, 2001. Proposals should be
addressed to Corporate Secretary, Dell Computer Corporation, One
Dell Way, Round Rock, Texas 78682-2244.
<P align="left">
<I>Presentation at Meeting.</I> For any proposal that is not
submitted for inclusion in next year’s proxy statement (as
described in the preceding paragraph) but is instead sought to be
presented directly at next year’s annual meeting, SEC rules
permit management to vote proxies in its discretion if
(a) Dell receives notice of the proposal before the close of
business on April 23, 2001 and advises stockholders in
<P align="center">19
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV align="left">
next year’s proxy statement about the nature of the matter
and how management intends to vote on such matter or
(b) does not receive notice of the proposal prior to the
close of business on April 23, 2001. Notices of intention to
present proposals at next year’s annual meeting should be
addressed to Corporate Secretary, Dell Computer Corporation,
One Dell Way, Round Rock, Texas 78682-2244.
</DIV>
<P align="left">
<I>Director Nominees.</I> In recommending candidates to the Board
of Directors, the Nominating Committee seeks persons of proven
judgment and experience. Stockholders who wish to suggest
qualified candidates may write to the Corporate Secretary, Dell
Computer Corporation, One Dell Way, Round Rock, Texas 78682-2244,
stating in detail the qualifications of the persons they
recommend.
<!-- link3 "Stockholder List" -->
<DIV align="left"><A NAME="034"></A></DIV>
<P align="left"><B>Stockholder List</B>
<P align="left">
For at least ten days prior to the meeting, a list of the
stockholders entitled to vote at the annual meeting will be
available for examination, for purposes germane to the meeting,
during ordinary business hours at Dell’s principal executive
offices. The list will also be available for examination at the
meeting.
<!-- link3 "Annual Report on Form 10-K" -->
<DIV align="left"><A NAME="035"></A></DIV>
<P align="left"><B>Annual Report on Form 10-K</B>
<P align="left">
A copy of the fiscal 2000 Annual Report on Form 10-K
(without exhibits) is being distributed along with this Proxy
Statement. It is also available via the Internet at www.dell.com.
In addition, the report (with exhibits) is available at the
World Wide Web site of the Securities and Exchange Commission
(www.sec.gov).
<P align="center">20
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV align="left">
DELL LOGO
</DIV>
<DIV align="left">
<B><I>www.dell.com</I></B>
</DIV>
<DIV align="left">
<B><I>c/o PROXY SERVICES</I></B>
</DIV>
<DIV align="left">
<B><I>P.O. BOX 9079</I></B>
</DIV>
<DIV align="left">
<B><I>FARMINGDALE, NY 11735-9769</I></B>
</DIV>
<P align="center"><B>OPTIONS FOR SUBMITTING PROXY</B>
<P align="left"><B>VOTE BY INTERNET - www.proxyvote.com</B>
<DIV align="left">
<FONT size="2">Use the Internet to transmit your voting
instructions and for electronic delivery of information. Have
your voting instruction card in hand when you access the web
site. You will be prompted to enter your 12-digit Control Number
which is located below to obtain your records and create an
electronic voting instruction form.</FONT>
</DIV>
<P align="left"><B>VOTE BY PHONE - 1-800-690-6903</B>
<DIV align="left">
<FONT size="2">Use any touch-tone telephone to transmit your
voting instructions. Have your voting instruction card in hand
when you call. You will be prompted to enter your 12-digit
Control Number which is located below and then follow the simple
instructions the Vote Voice provides you.</FONT>
</DIV>
<P align="left"><B>VOTE BY MAIL -</B>
<DIV align="left">
<FONT size="2">Mark, sign and date your voting instruction card
and return it in the postage-paid envelope we’ve provided or
return to Dell Computer Corporation, c/o ADP, 51 Mercedes Way,
Edgewood, NY 11717</FONT>
</DIV>
<P align="center"><B>THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.</B>
<P align="left">
<B>DELL COMPUTER CORPORATION</B>
<P align="left"><B>ELECTION OF DIRECTORS</B>
<P align="left">
<FONT size="2">The Board of Directors Recommends a Vote</FONT>
<DIV align="left">
<FONT size="2">FOR all nominees.</FONT>
</DIV>
<P align="left">
<FONT size="2">Nominees: (01) Alex J. Mandl</FONT>
<DIV align="left">
<FONT size="2">
(02)
Michael A. Miles</FONT>
</DIV>
<DIV align="left">
<FONT size="2">
(03)
Samuel A. Nunn, Jr.</FONT>
</DIV>
<DIV align="left">
<FONT size="2">
(04)
Morton L. Topfer</FONT>
</DIV>
<TABLE width="100%" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="35%"> </TD>
<TD width="3%"> </TD>
<TD width="34%"> </TD>
<TD width="3%"> </TD>
<TD width="25%"> </TD>
</TR>
<TR>
<TD align="center" nowrap><FONT size="2"><B>For</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>Withhold</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>For All</B></FONT></TD>
</TR>
<TR>
<TD align="center" nowrap><FONT size="2"><B>All</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>All</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>Except:</B></FONT></TD>
</TR>
<TR>
<TD align="center" valign="top"><FONT size="2">
[ ]</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
[ ]</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
[ ]</FONT></TD>
</TR>
</TABLE>
<P align="right">[Additional columns below]
<P>[Continued from above table, first column(s) repeated]
<TABLE width="100%" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="7%"> </TD>
<TD width="3%"> </TD>
<TD width="90%"> </TD>
</TR>
<TR>
<TD align="center" nowrap><FONT size="2"><B>For</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>To withhold authority to vote for any individual, mark “For All Except” and write the nominee’s number on the line</B></FONT></TD>
</TR>
<TR>
<TD align="center" nowrap><FONT size="2"><B>All</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>below.</B></FONT></TD>
</TR>
<TR>
<TD align="center" valign="top"><FONT size="2">
[ ]</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
<HR size="1"></FONT></TD>
</TR>
</TABLE>
<P align="left">
<B><FONT size="2">In their discretion, the Proxies are authorized
to vote on such other business as may properly come before the
meeting or any adjournment(s) thereof.</FONT></B>
<P align="left">
<FONT size="2">Each joint owner should sign. Signatures should
correspond with the names printed on this Proxy. Attorneys,
executors, administrators, guardians, trustees, corporate
officers or others signing in a respective capacity should give
full title.</FONT>
<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">
<TR>
<TD width="49%"> </TD>
<TD width="3%"> </TD>
<TD width="48%"> </TD>
</TR>
<TR>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
</TR>
<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Signature [PLEASE SIGN WITHIN BOX] Date</B></FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
<B>Signature (Joint Owners) Date</B></FONT></TD>
</TR>
</TABLE>
</CENTER>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
<TD width="33%"></TD>
<TD width="33%"></TD>
<TD width="33%"></TD>
</TR>
<TR valign="top">
<TD align="left">PROXY FORM</TD>
<TD align="center">DELL LOGO</TD>
<TD align="right">PROXY FORM</TD>
</TR>
</TABLE>
<P align="center"><B>DELL COMPUTER CORPORATION</B>
<DIV align="center">
<B>PROXY</B>
</DIV>
<P align="center">
FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON
JULY 20, 2000 AND ANY ADJOURNMENTS OR POSTPONEMENTS THEREOF
<P align="center">
<B>THIS PROXY IS BEING SOLICITED ON BEHALF OF THE BOARD OF</B>
<DIV align="center">
<B>DIRECTORS OF DELL COMPUTER CORPORATION</B>
</DIV>
<P align="left">
By casting your voting instructions on the reverse side, you
hereby (a) acknowledge receipt of the proxy statement
related to the above-referenced meeting, (b) appoint the
individuals named in such proxy statement, and each of them, as
proxies, with full power of substitution, to vote all shares of
Dell common stock that you would be entitled to cast if
personally present at such meeting and at any postponement or
adjournment thereof and (c) revoke any proxies previously
given.
<P align="left">
This proxy will be voted as specified by you. If no choice is
specified, the proxy will be voted according to the Board of
Director Recommendations indicated on the reverse side, and
according to the discretion of the proxy holders for any other
matters that may properly come before the meeting or any
postponement or adjournment thereof.
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