Oracle 2010 Annual Report Download - page 123

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2011
Restated 2000 Long-Term Equity Incentive Plan (the 2000 Plan). Upon approval, the termination date of the 2000 Plan was extended by ten years and the
number of authorized shares of stock that may be issued under the 2000 Plan was increased by 388,313,015 shares. Under the terms of the 2000 Plan, options to
purchase common stock generally are granted at not less than fair market value, become exercisable as established by the Board (generally 25% annually over
four years under our current practice), and generally expire no more than ten years from the date of grant. As of May 31, 2011, options to purchase 327 million
shares of common stock were outstanding under the 2000 Plan, of which 140 million were vested. As of May 31, 2011, approximately 499 million shares of
common stock were available for future awards under the 2000 Plan. To date, we have not issued any stock purchase rights, stock appreciation rights, restricted
stock-based awards or long-term performance awards under the 2000 Plan.
In fiscal 1993, the Board adopted the 1993 Directors’ Stock Option Plan (the Directors’ Plan), which provides for the issuance of non-qualified stock options to
non-employee directors. The Director’s Plan has from time to time been amended and restated, most recently in fiscal 2010. Under the terms of the Directors’
Plan, options to purchase 8 million shares of common stock were reserved for issuance, options are granted at not less than fair market value, become exercisable
over four years, and expire no more than ten years from the date of grant. The Directors’ Plan provides for automatic grants of options to each non-employee
director upon first becoming a director and thereafter on an annual basis, as well as automatic nondiscretionary grants for chairing certain Board committees. The
Board has the discretion to replace any automatic option grant under the Directors’ Plan with awards of restricted stock, restricted stock units or other
stock-based awards. The number of shares subject to any such stock award will be no more than the equivalent value of the options, as determined on any
reasonable basis by the Board, which would otherwise have been granted under the applicable automatic option grant. The Board will determine the particular
terms of any such stock awards at the time of grant, but the terms will be consistent with those of options granted under the Directors’ Plan with respect to
vesting or forfeiture schedules and treatment on termination of status as a director. At May 31, 2011, options to purchase approximately 3 million shares of
common stock were outstanding under the 1993 Directors’ Plan, of which approximately 2 million were vested. As of May 31, 2011, approximately 2 million
shares are available for future option awards under this plan of which a lesser portion than the total may be used for grants other than options.
In connection with certain of our acquisitions, including Sun and others, we assumed all of the outstanding stock options and other stock awards of each
acquiree’s respective stock plans. These stock options and other stock awards generally retain all of the rights, terms and conditions of the respective plans under
which they were originally granted. As of May 31, 2011, options to purchase 24 million shares of common stock and 2 million shares of restricted stock were
outstanding under these plans.
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Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠