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## NOTE G — INCOME TAXES (continued) 

Income before income taxes for the years ended December 31, 2001, 2000, and 1999 consisted of the following (in thousands): 

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## NOTE I — STOCK OPTIONS AND WARRANTS 

## NOTE H — COMMON STOCK 

As part of a program previously authorized by the Board of Directors, EMCOR purchased 174,100 and 957,900 shares of its common stock during 1999 and 1998, respectively. The aggregate amount of $16.8 million paid for those shares has been classified as “Treasury stock, at cost” in the Consolidated Balance Sheet at December 31, 2001. EMCOR management is authorized to repurchase up to $20.0 million of EMCOR’s common stock under this program. 

EMCOR has stock option plans and programs under which employees receive stock options and a stock bonus plan for executives pursuant to which they receive restricted stock units. EMCOR also has stock option plans and restricted stock plans under which outside directors may receive stock options or shares of common stock. A summary of certain terms of the grants under the stock option plans and programs and stock plans are as follows: 

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(1) At the election of an individual serving as a Director, the individual may elect to receive one-third, two-thirds or all of their retainer for a calendar year in the form of stock options. Such options vest quarterly over the calendar year. In addition, the individual will receive additional stock options equal to the product of 0.5 times the amount of stock options otherwise issued as a result of his election. 

(2) At the election of an individual serving as a Director, the individual may elect to receive one-third, two-thirds or all of their retainer for a calendar year in the form of deferred stock units equal in value to the retainer. In addition, the individual will receive additional deferred stock units equal to 0.2 times the amount of deferred stock units otherwise issued as a result of his election. Following termination of Board service, the Director receives shares of common stock equal to the number of deferred stock units. 

(3) Generally, the grant date is the first business day of a calendar year for individuals who are serving as Directors as of such date. 

