Salesforce.com 2008 Annual Report Download - page 80

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Table of Contents
salesforce.com, inc.
Notes to Consolidated Financial Statements—(Continued)
3. Stockholders' Equity
Stock Awards Issued to Employees
The 1999 Stock Option Plan (the "1999 Plan") provides for the issuance of incentive and non-statutory options to employees and nonemployees of the
Company. In addition to the 1999 Plan, the Company maintains the 2004 Equity Incentive Plan, 2004 Employee Stock Purchase Plan and the 2004 Outside
Directors Stock Plan. These plans, other than the 1999 Plan and the 2004 Outside Directors Stock Plan, provide for annual automatic increases on February 1
to the shares reserved for issuance based on the lesser of (i) a specific percentage of the total number of shares outstanding at year end; (ii) a fixed number of
shares; or (iii) a lesser number of shares set by the Company's Board of Directors, all as specified in the respective plans.
On February 1, 2009, 3.5 million additional shares were reserved under the 2004 Equity Incentive Plan pursuant to the automatic increase. The 2004
Employee Stock Purchase Plan will not be implemented unless and until the Company's Board of Directors authorizes the commencement of one or more
offerings under the plan. No offering periods have been authorized to date.
In April 2006, the Company's Board of Directors approved the 2006 Inducement Equity Incentive Plan (the "Inducement Plan") that allows for stock
option and other equity incentive grants to employees in connection with merger or acquisition activity. The total number of shares reserved for issuance
under the Inducement Plan is 400,000 shares. As of January 31, 2009, there were 101,705 shares of common stock available for grant under the Inducement
Plan.
Prior to February 1, 2006, options issued under the Company's stock option plans were generally for periods not to exceed 10 years and were issued at
fair value of the shares of common stock on the date of grant as determined by the trading price of such stock on the New York Stock Exchange. After
February 1, 2006, options issued to employees are for periods not to exceed 5 years. Grants made pursuant to the 2004 Equity Incentive Plan and the
Inducement Plan do not provide for the immediate exercise of options.
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