Oracle 2013 Annual Report Download - page 124

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2014
stockholders, upon the recommendation of our Board of Directors, approved the adoption of the Amended and Restated 2000 Long-
Term Equity
Incentive Plan (the 2000 Plan), which extended the termination date of the 2000 Plan by ten years and increased the number of authorized shares
of stock that may be issued by 388,313,015 shares. In fiscal 2014, our stockholders, upon the recommendation of our Board of Directors,
approved a further increase in the number of authorized shares of stock that may be issued under the 2000 Plan by 305,000,000 shares. Under the
terms of the 2000 Plan, options to purchase common stock 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, 2014, options to purchase 448 million shares of common stock were outstanding under the 2000 Plan, of which 183 million
were vested. As of May 31, 2014, approximately 495 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 Directors’ Plan has from time to time been amended and restated. Under the terms of the Directors’
Plan, options to purchase 10 million shares of common stock were reserved for issuance (including a fiscal 2013 amendment to increase the
number of shares of our common stock reserved for issuance by 2 million shares), 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 or vice chairing certain Board committees. 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. As of May 31, 2014, 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, 2014, approximately 2 million
shares were available for future option awards under this plan.
In connection with certain of our acquisitions, we assumed certain outstanding stock options and other restricted stock-based awards of each
acquiree’s respective stock plans. These stock options and other restricted stock-based awards generally retain all of the rights, terms and
conditions of the respective plans under which they were originally granted. As of May 31, 2014, stock options to purchase 11 million shares of
common stock and 1 million shares of restricted stock-based awards were outstanding under these plans.
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