What is the primary purpose of the amendment to the 2006 Inducement Equity Incentive Plan?

The primary purpose of the amendment was to increase the number of shares of Salesforce's common stock reserved for issuance under the plan by an additional 400,000 shares. These shares are intended for granting inducement stock options and other awards to employees.

What is the significance of reactivating the 2004 Employee Stock Purchase Plan (ESPP)?

The reactivation of the ESPP signifies Salesforce's intention to re-engage its employees in owning company stock through a structured purchase program. This plan was previously adopted but had not commenced operations. It will now allow employees to buy company stock at a discount starting in December 2011.

What are the key terms for purchasing stock under the reactivated ESPP?

Under the ESPP, eligible employees can purchase shares at 85% of the fair market value of the stock on the lower of the offering period start date or the purchase date. Contributions are made via payroll deductions, not exceeding 15% of eligible compensation, and purchases occur at the end of approximately 6-month purchase periods within longer 12-month offering periods.

Were these equity plan changes approved by Salesforce shareholders?

The amendment to the 2006 Inducement Equity Incentive Plan was made without direct stockholder approval, relying on the 'employment inducement exemption' under NYSE rules. The 2004 ESPP was originally approved by stockholders in March 2004, and its reactivation through amendment by the Board is detailed in this filing.

CRM 8-K: Material Agreements

Summary

This Form 8-K filing by Salesforce.com, Inc. (CRM) on September 22, 2011, primarily details two key actions related to employee compensation and stock participation. The company amended and restated its 2006 Inducement Equity Incentive Plan to increase the number of shares available for issuance by 400,000. These shares are intended for inducement stock options and awards, administered by the Compensation Committee and previously approved without direct stockholder approval under NYSE rules. Furthermore, Salesforce is reactivating its 2004 Employee Stock Purchase Plan (ESPP), which had been previously adopted but inactive. The ESPP is designed to allow eligible employees to purchase company common stock at a discount, with offering periods set to commence in December 2011. The amended ESPP will operate through overlapping 12-month offering periods, with shares purchased at 85% of the lower fair market value on the offering start or purchase date. This filing provides insight into the company's strategy to incentivize and retain employees through equity programs.

Key Highlights

1Amendment to the 2006 Inducement Equity Incentive Plan to add 400,000 shares for stock options and awards.
2The 2006 Plan is administered by the Compensation Committee and utilizes the NYSE employment inducement exemption.
3Reactivation of the 2004 Employee Stock Purchase Plan (ESPP) with offering periods set to begin in December 2011.
4The ESPP allows eligible employees to purchase company common stock.
5Purchases under the ESPP will be made at a discount: 85% of the lower fair market value on the offering start or purchase date.
6The ESPP will utilize approximately 12-month offering periods, divided into two 6-month purchase periods.
7Employees can contribute up to 15% of their eligible compensation through payroll deductions for ESPP purchases.

Salesforce, Inc. 8-K Report, Material Agreement (Sep 23, 2011)

Summary

Key Highlights

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