Salesforce.com 2006 Annual Report Download - page 79

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Table of Contents
salesforce.com, inc.
Notes to Consolidated Financial Statements—(Continued)
On February 1, 2007, 4.0 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, 2007, there were 149,350 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.
In January 2007, the Company's Board of Directors approved change in control and retention agreements involving the Company's executive officers.
Should certain events occur, the executive officers would be entitled to certain benefits that include, among other benefits, vesting acceleration of equity
incentives held by the executive at the time of termination resulting from a change in control.
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