Document:

2004 Employee Stock Purchase Plan

 Exhibit 10.4 
  
 salesforce.com, inc. 
  
 2004 Employee Stock Purchase Plan 
  

 TABLE OF CONTENTS 
  

			
	 	  	Page

		
	 1.       Establishment, Purpose and Term of Plan
	  	1
	 1.1    Establishment
	  	1
	 1.2    Purpose
	  	1
	 1.3    Term of Plan
	  	1
		
	 2.       Definitions and Construction
	  	1
	 2.1    Definitions
	  	1
	 2.2    Construction
	  	4
		
	 3.       Administration
	  	4
	 3.1    Administration by the Board
	  	4
	 3.2    Authority of Officers
	  	4
	 3.3    Policies and Procedures Established by the Company
	  	4
	 3.4    Indemnification
	  	5
		
	 4.       Shares Subject to Plan
	  	5
	 4.1    Maximum Number of Shares Issuable
	  	5
	 4.2    Adjustments for Changes in Capital Structure
	  	5
		
	 5.       Eligibility
	  	6
	 5.1    Employees Eligible to Participate
	  	6
	 5.2    Exclusion of Certain Stockholders
	  	6
	 5.3    Determination by Company
	  	6
		
	 6.       Offerings
	  	7
		
	 7.       Participation in the Plan
	  	7
	 7.1    Initial Participation
	  	7
	 7.2    Continued Participation
	  	8
		
	 8.       Right to Purchase Shares
	  	8
	 8.1    Grant of Purchase Right
	  	8
	 8.2    Pro Rata Adjustment of Purchase Right
	  	8
	 8.3    Calendar Year Purchase Limitation
	  	9
		
	 9.       Purchase Price
	  	9
		
	 10.     Accumulation of Purchase Price through Payroll Deduction
	  	9
	 10.1 Amount of Payroll Deductions
	  	10
	 10.2 Commencement of Payroll Deductions
	  	10
	 10.3 Election to Change or Stop Payroll Deductions
	  	10
	 10.4 Administrative Suspension of Payroll Deductions
	  	10
	 10.5 Participant Accounts
	  	10
	 10.6 No Interest Paid
	  	11
		
	 11.     Purchase of Shares
	  	11
	 11.1 Exercise of Purchase Right
	  	11

  

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 TABLE OF CONTENTS 
 (continued) 
  

			
	 	  	Page

	 11.2 Pro Rata Allocation of Shares
	  	11
	 11.3 Delivery of Certificates
	  	12
	 11.4 Return of Cash Balance
	  	12
	 11.5 Tax Withholding
	  	12
	 11.6 Expiration of Purchase Right
	  	12
	 11.7 Provision of Reports and Stockholder Information to Participants
	  	12
		
	 12.     Withdrawal from Plan
	  	13
	 12.1 Voluntary Withdrawal from the Plan
	  	13
	 12.2 Return of Payroll Deductions
	  	13
		
	 13.     Termination of Employment or Eligibility
	  	13
		
	 14.     Change in Control
	  	13
	 14.1 Definitions
	  	13
	 14.2 Effect of Change in Control on Purchase Rights
	  	14
		
	 15.     Nontransferability of Purchase Rights
	  	14
		
	 16.     Compliance with Securities Law
	  	14
		
	 17.     Rights as a Stockholder and Employee
	  	15
		
	 18.     Legends
	  	15
		
	 19.     Notification of Disposition of Shares
	  	16
		
	 20.     Designation of Beneficiary
	  	16
	 20.1 Designation Procedure
	  	16
	 20.2 Absence of Beneficiary Designation
	  	16
		
	 21.     Notices
	  	16
		
	 22.     Amendment or Termination of the Plan
	  	16

  

 -ii- 

 salesforce.com, inc. 
 2004 Employee Stock Purchase Plan 
  

	 	1.	ESTABLISHMENT, PURPOSE AND TERM OF PLAN.

  
 1.1 Establishment. The
salesforce.com, inc. 2004 Employee Stock Purchase Plan (the “Plan”) is hereby established effective as of the effective date of the initial registration by the Company of its Stock under Section 12 of the Securities
Exchange Act of 1934, as amended (the “Effective Date”). 
  
 1.2 Purpose. The purpose of the Plan is to advance the interests of the Company and its stockholders by providing an incentive to
attract, retain and reward Eligible Employees of the Participating Company Group and by motivating such persons to contribute to the growth and profitability of the Participating Company Group. The Plan provides such Eligible Employees with an
opportunity to acquire a proprietary interest in the Company through the purchase of Stock. The Company intends that the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code (including any amendments or
replacements of such section), and the Plan shall be so construed. 
  
 1.3 Term of Plan. The Plan shall continue in effect until its termination by the Board. 
  

	 	2.	DEFINITIONS AND CONSTRUCTION. 

  
 2.1 Definitions. Any term not expressly defined in the Plan but defined for purposes of Section 423
of the Code shall have the same definition herein. Whenever used herein, the following terms shall have their respective meanings set forth below: 
  
 (a) “Board” means the Board of Directors of the Company. If one or more Committees have been appointed by the
Board to administer the Plan, “Board” also means such Committee(s). 
  
 (b) “Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated thereunder. 
  
 (c) “Committee” means the Compensation Committee or other committee of the Board
duly appointed to administer the Plan and having such powers as specified by the Board. Unless the powers of the Committee have been specifically limited, the Committee shall have all of the powers of the Board granted herein, including, without
limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by law. 
  
 (d) “Company” means salesforce.com, inc., a Delaware corporation, or any successor corporation thereto.

  

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 (e) “Compensation” means, with respect to any Offering Period,
base wages or salary, overtime, bonuses, commissions, shift differentials, payments for paid time off, payments in lieu of notice, and compensation deferred under any program or plan, including, without limitation, pursuant to Section 401(k) or
Section 125 of the Code. Compensation shall be limited to amounts actually payable in cash or deferred during the Offering Period. Compensation shall not include moving allowances, payments pursuant to a severance agreement, termination pay,
relocation payments, sign-on bonuses, any amounts directly or indirectly paid pursuant to the Plan or any other stock purchase or stock option plan, or any other compensation not included above. 
  
 (f) “Eligible Employee” means an
Employee who meets the requirements set forth in Section 5 for eligibility to participate in the Plan. 
  
 (g) “Employee” means a person treated as an employee of a Participating Company for purposes of Section 423 of the
Code. A Participant shall be deemed to have ceased to be an Employee either upon an actual termination of employment or upon the corporation employing the Participant ceasing to be a Participating Company. For purposes of the Plan, an individual
shall not be deemed to have ceased to be an Employee while on any military leave, sick leave, or other bona fide leave of absence approved by the Company of ninety (90) days or less. If an individual’s leave of absence exceeds ninety (90) days,
the individual shall be deemed to have ceased to be an Employee on the ninety-first (91st) day of such leave unless the individual’s right to reemployment with the Participating Company Group is guaranteed either by statute or by contract.

  
 (h) “Fair Market
Value” means, as of any date: 
  
 (i) If the Stock is then listed on a national or regional securities exchange or market system or is regularly quoted by a recognized securities dealer, the closing sale price of a share of Stock (or the mean of the closing bid and asked
prices if the Stock is so quoted instead) as quoted on the Nasdaq National Market, the Nasdaq SmallCap Market or such other national or regional securities exchange or market system constituting the primary market for the Stock, or by such
recognized securities dealer, as reported in The Wall Street Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Stock has traded on such securities exchange or market system or
has been quoted by such securities dealer, the date on which the Fair Market Value is established shall be the last day on which the Stock was so traded or quoted prior to the relevant date, or such other appropriate day as determined by the Board,
in its discretion. 
  
 (ii) If, on the relevant
date, the Stock is not then listed on a national or regional securities exchange or market system or regularly quoted by a recognized securities dealer, the Fair Market Value of a share of Stock shall be as determined in good faith by the Board.

  
 (iii) Notwithstanding the foregoing, the
Fair Market Value of a share of Stock on the Effective Date shall be deemed to be the public offering price set forth in the final prospectus filed with the Securities and Exchange Commission in connection with the Company’s initial public
offering of the Stock. 
  

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 (i) “Initial Offering Period” means the Offering Period
commencing on the Effective Date of the Plan, as established pursuant to Section 6. 
  
 (j) “Initial Offering Period Cash Exercise Notice” means a written notice in such form as specified by the
Company, which states a Participant’s election to exercise, as of the next Purchase Date, a Purchase Right granted to such Participant with respect to the Initial Offering Period. 
  
 (k) “Offering” means an offering of Stock as provided in Section 6. 
  
 (l) “Offering Date” means, for any
Offering, the first day of the Offering Period. 
  
 (m) “Offering Period” means an Offering Period established in accordance with Section 6. 
  
 (n) “Parent Corporation” means any present or future “parent corporation” of the Company, as defined in
Section 424(e) of the Code. 
  
 (o)
“Participant” means an Eligible Employee who has become a participant in an Offering Period in accordance with Section 7 and remains a participant in accordance with the Plan. 
  
 (p) “Participating Company” means
the Company and any Parent Corporation or Subsidiary Corporation designated by the Board as a corporation the Employees of which may, if Eligible Employees, participate in the Plan. The Board shall have the sole and absolute discretion to determine
from time to time which Parent Corporations or Subsidiary Corporations shall be Participating Companies. 
  
 (q) “Participating Company Group” means, at any point in time, the Company and all other corporations collectively
which are then Participating Companies. 
  
 (r)
“Purchase Date” means, for any Offering Period, the last day of such period, or, if so determined by the Board, the last day of each Purchase Period occurring within an Offering Period. 
  
 (s) “Purchase Period” means a
Purchase Period established in accordance with Section 6. 
  
 (t) “Purchase Price” means the price at which a share of Stock may be purchased under the Plan, as determined in accordance with Section 9. 
  
 (u) “Purchase Right” means an option
granted to a Participant pursuant to the Plan to purchase such shares of Stock as provided in Section 8, which the Participant may or may not exercise during the Offering Period in which such option is outstanding. Such option arises from the right
of a Participant to withdraw any accumulated payroll deductions of the Participant not previously applied to the purchase of Stock under the Plan and to terminate participation in the Plan at any time during an Offering Period. 
  

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 (v) “Registration Date” means the effective date of the initial
registration on Form S-8 of shares of Stock issuable pursuant to the Plan. 
  
 (w) “Stock” means the common stock of the Company, as adjusted from time to time in accordance with Section 4.2. 
  
 (x) “Subscription Agreement” means a written agreement in such form as specified by
the Company, stating an Employee’s election to participate in the Plan and authorizing payroll deductions under the Plan from the Employee’s Compensation. 
  
 (y) “Subscription Date” means the last business day prior to the Offering Date of an
Offering Period or such earlier date as the Company shall establish. 
  
 (z) “Subsidiary Corporation” means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code. 
  
 2.2 Construction. Captions and titles contained
herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of
the term “or” is not intended to be exclusive, unless the context clearly requires otherwise. 
  

	 	3.	ADMINISTRATION. 

  
 3.1 Administration by the Board. The Plan shall be administered by the Board. All questions of interpretation of the Plan, of any
form of agreement or other document employed by the Company in the administration of the Plan, or of any Purchase Right shall be determined by the Board, and such determinations shall be final, binding and conclusive upon all persons having an
interest in the Plan or the Purchase Right, unless fraudulent or made in bad faith. Subject to the provisions of the Plan, the Board shall determine all of the relevant terms and conditions of Purchase Rights; provided, however, that all
Participants granted Purchase Rights pursuant to an Offering shall have the same rights and privileges within the meaning of Section 423(b)(5) of the Code. Any and all actions, decisions and determinations taken or made by the Board in the exercise
of its discretion pursuant to the Plan or any agreement thereunder (other than determining questions of interpretation pursuant to the second sentence of this Section 3.1) shall be final, binding and conclusive upon all persons having an interest
therein. All expenses incurred in connection with the administration of the Plan shall be paid by the Company. 
  
 3.2 Authority of Officers. Any officer of the Company shall have the authority to act on behalf of the Company with respect to any
matter, right, obligation, determination or election that is the responsibility of or that is allocated to the Company herein, provided that the officer has apparent authority with respect to such matter, right, obligation, determination or
election. 
  
 3.3 Policies and Procedures
Established by the Company. Without regard to whether any Participant’s Purchase Right may be considered adversely affected, the Company may, from time to time, consistent with the Plan and the requirements of Section 423 of the 

  

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Code, establish, change or terminate such rules, guidelines, policies, procedures, limitations, or adjustments as deemed advisable by the Company, in its
discretion, for the proper administration of the Plan, including, without limitation, (a) a minimum payroll deduction amount required for participation in an Offering, (b) a limitation on the frequency or number of changes permitted in the rate of
payroll deduction during an Offering, (c) an exchange ratio applicable to amounts withheld in a currency other than United States dollars, (d) a payroll deduction greater than or less than the amount designated by a Participant in order to adjust
for the Company’s delay or mistake in processing a Subscription Agreement or in otherwise effecting a Participant’s election under the Plan or as advisable to comply with the requirements of Section 423 of the Code, and (e) determination
of the date and manner by which the Fair Market Value of a share of Stock is determined for purposes of administration of the Plan. All such actions by the Company shall be taken consistent with the requirement under Section 423(b)(5) of the Code
that all Participants granted Purchase Rights pursuant to an Offering shall have the same rights and privileges within the meaning of such section. 
  
 3.4 Indemnification. In addition to such other rights of indemnification as they may have as members of the Board or officers or
employees of the Participating Company Group, members of the Board and any officers or employees of the Participating Company Group to whom authority to act for the Board or the Company is delegated shall be indemnified by the Company against all
reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason
of any action taken or failure to act under or in connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the
Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad
faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and
defend the same. 
  

	 	4.	SHARES SUBJECT TO PLAN. 

  
 4.1 Maximum Number of Shares Issuable. Subject to
adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be one million (1,000,000), cumulatively increased on February 1, 2005 and each February 1 thereafter until and including
February 1, 2013 (the “Annual Increase”) by the smallest of (a) one percent (1%) of the number of shares of Stock issued and outstanding on the immediately preceding January 31, (b) one million (1,000,000) shares, or (c) such
lesser number of shares determined by the Board, and shall consist of authorized but unissued or reacquired shares of Stock, or any combination thereof. If an outstanding Purchase Right for any reason expires or is terminated or canceled, the shares
of Stock allocable to the unexercised portion of that Purchase Right shall again be available for issuance under the Plan. 
  
 4.2 Adjustments for Changes in Capital Structure. Subject to any required action by the stockholders of the Company, in the event
of any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation, 

  

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reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off,
combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the stockholders of the Company in a form other than Stock (excepting normal cash
dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate adjustments shall be made in the number and class of shares subject to the Plan, the Annual Increase, the limit on the shares which may be purchased by
any Participant during an Offering (as described in Sections 8.1 and 8.2) and each Purchase Right, and in the Purchase Price in order to prevent dilution or enlargement of Participants’ rights under the Plan. For purposes of the foregoing,
conversion of any convertible securities of the Company shall not be treated as “effected without receipt of consideration by the Company.” Any fractional share resulting from an adjustment pursuant to this Section 4.2 shall be rounded
down to the nearest whole number, and in no event may the Purchase Price be decreased to an amount less than the par value, if any, of the stock subject to the Purchase Right. The adjustments determined by the Board pursuant to this Section 4.2
shall be final, binding and conclusive. 
  

	 	5.	ELIGIBILITY. 

  
 5.1 Employees Eligible to Participate. Each Employee of a Participating Company is eligible to participate in the Plan and shall be
deemed an Eligible Employee, except the following: 
  
 (a) Any Employee who is customarily employed by the Participating Company Group for twenty (20) hours or less per week; or 
  
 (b) Any Employee who is customarily employed by the Participating Company Group for not more than five (5) months in any calendar year.

  
 5.2 Exclusion of Certain Stockholders.
Notwithstanding any provision of the Plan to the contrary, no Employee shall be treated as an Eligible Employee and granted a Purchase Right under the Plan if, immediately after such grant, the Employee would own or hold options to purchase stock of
the Company or of any Parent Corporation or Subsidiary Corporation possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of such corporation, as determined in accordance with Section 423(b)(3) of
the Code. For purposes of this Section 5.2, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of such Employee. 
  
 5.3 Determination by Company. The Company shall determine in good faith and in the exercise of its
discretion whether an individual has become or has ceased to be an Employee or an Eligible Employee and the effective date of such individual’s attainment or termination of such status, as the case may be. For purposes of an individual’s
participation in or other rights, if any, under the Plan as of the time of the Company’s determination, all such determinations by the Company shall be final, binding and conclusive, notwithstanding that the Company or any court of law or
governmental agency subsequently makes a contrary determination. 
  

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	 	6.	OFFERINGS. 

  
 The Plan initially shall be implemented on and after the Effective Date by sequential Offerings of approximately six (6) months duration
or such other duration as the Board shall determine (individually, an “Offering Period”); provided, however, that the first Offering Period (the “Initial Offering Period”)shall commence on the
Effective Date and end on or about August 31, 2004. Subsequent Offering Periods shall commence on or about March 1 and September 1 of each year and end on or about the last day of the next August and February, respectively, occurring thereafter.
Notwithstanding the foregoing, the Board may establish additional or alternative sequential or overlapping Offering Periods, a different duration for one or more Offering Periods or different commencing or ending dates for such Offering Periods;
provided, however, that no Offering Period may have a duration exceeding twenty-seven (27) months. If the Board shall so determine in its discretion, each Offering Period may consist of two (2) or more consecutive purchase periods having such
duration as the Board shall specify (individually, a “Purchase Period”), and the last day of each such Purchase Period shall be a Purchase Date. If the first or last day of an Offering Period or a Purchase Period is not a day
on which the national securities exchanges or Nasdaq Stock Market are open for trading, the Company shall specify the trading day that will be deemed the first or last day, as the case may be, of the Offering Period or Purchase Period. 

 

	 	7.	PARTICIPATION IN THE PLAN. 

  
 7.1 Initial Participation. 
  
 (a) Generally. Except as provided in Section 7.1(b),
an Eligible Employee may become a Participant in an Offering Period by delivering a properly completed Subscription Agreement to the office designated by the Company not later than the close of business for such office on the Subscription Date
established by the Company for that Offering Period. An Eligible Employee who does not deliver a properly completed Subscription Agreement to the Company’s designated office on or before the Subscription Date for an Offering Period shall not
participate in the Plan for that Offering Period or for any subsequent Offering Period unless the Eligible Employee subsequently delivers a properly completed Subscription Agreement to the appropriate office of the Company on or before the
Subscription Date for such subsequent Offering Period. An Employee who becomes an Eligible Employee after the Offering Date of an Offering Period shall not be eligible to participate in that Offering Period but may participate in any subsequent
Offering Period provided the Employee is still an Eligible Employee as of the Offering Date of such subsequent Offering Period. 
  
 (b) Automatic Participation in Initial Offering Period. Notwithstanding Section 7.1(a), each Employee who is an Eligible Employee
as of the Effective Date shall automatically become a Participant in the Initial Offering Period and shall be granted automatically a Purchase Right consisting of an option to purchase the lesser of (a) a number of whole shares of Stock determined
in accordance with Section 8 or (b) a number of whole shares of Stock determined by dividing fifteen percent (15%) of such Participant’s Compensation paid during the Initial Offering Period by the Purchase Price applicable to the Initial
Offering Period. The Company shall not require or permit any Participant to deliver a Subscription Agreement for participation in the Initial Offering Period; provided, however, that following the Registration 
  

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Date a Participant may deliver a Subscription Agreement to the office designated by the Company if the Participant wishes to change the terms of the
Participant’s participation in the Initial Offering Period. Such changes may include, for example, an election to commence payroll deductions in accordance with Section 10. 
  
 7.2 Continued Participation. 
  
 (a) Generally. Except as provided in Section 7.2(b), a Participant shall automatically participate in
the next Offering Period commencing immediately after the Purchase Date of each Offering Period in which the Participant participates provided that the Participant remains an Eligible Employee on the Offering Date of the new Offering Period and has
not either (a) withdrawn from the Plan pursuant to Section 12.1 or (b) terminated employment as provided in Section 13. A Participant who may automatically participate in a subsequent Offering Period, as provided in this Section, is not required to
deliver any additional Subscription Agreement for the subsequent Offering Period in order to continue participation in the Plan. However, a Participant may deliver a new Subscription Agreement for a subsequent Offering Period in accordance with the
procedures set forth in Section 7.1(a) if the Participant desires to change any of the elections contained in the Participant’s then effective Subscription Agreement. 
  
 (b) Participation Following Initial Offering Period. Notwithstanding Section 7.2(a), an Eligible
Employee who was automatically enrolled in the Initial Offering Period and who wishes to participate in an Offering Period which begins after the Initial Offering Period shall deliver a Subscription Agreement in accordance with Section 7.1(a) no
earlier than the Registration Date and no later than the Subscription Date for such Offering Period, unless such Employee was a Participant in the Initial Offering Period who delivered a Subscription Agreement with respect to the Initial Offering
Period as provided in Section 7.1(b). 
  

	 	8.	RIGHT TO PURCHASE SHARES. 

  
 8.1 Grant of Purchase Right. Except as provided in
Section 7.1 with respect to the Initial Offering Period or as otherwise provided below, on the Offering Date of each Offering Period, each Participant in such Offering Period shall be granted automatically a Purchase Right consisting of an option to
purchase the lesser of (a) that number of whole shares of Stock determined by dividing Twelve Thousand Five Hundred Dollars ($12,500) by the Fair Market Value of a share of Stock on such Offering Date or (b) seven hundred fifty (750) shares of
Stock. The Board may, in its discretion and prior to the Offering Date of any Offering Period, (i) change the method of, or any of the foregoing factors in, determining the number of shares of Stock subject to Purchase Rights to be granted on such
Offering Date or (ii) specify a maximum aggregate number of shares that may be purchased by all Participants in an Offering or on any Purchase Date within an Offering Period. No Purchase Right shall be granted on an Offering Date to any person who
is not, on such Offering Date, an Eligible Employee. 
  
 8.2 Pro Rata Adjustment of Purchase Right. If the Board establishes an Offering Period of any duration other than six months, then (a) the dollar amount in Section 8.1 shall be determined by multiplying $2,083.33 by the number of
months (rounded to the nearest whole month) in the Offering Period and rounding to the nearest whole dollar, and (b) the share 

  

 8 

 
amount in Section 8.1 shall be determined by multiplying 125 shares by the number of months (rounded to the nearest whole month) in the Offering Period and
rounding to the nearest whole share. 
  
 8.3
Calendar Year Purchase Limitation. Notwithstanding any provision of the Plan to the contrary, no Participant shall be granted a Purchase Right which permits his or her right to purchase shares of Stock under the Plan to accrue at a rate
which, when aggregated with such Participant’s rights to purchase shares under all other employee stock purchase plans of a Participating Company intended to meet the requirements of Section 423 of the Code, exceeds Twenty-Five Thousand Dollars
($25,000) in Fair Market Value (or such other limit, if any, as may be imposed by the Code) for each calendar year in which such Purchase Right is outstanding at any time. For purposes of the preceding sentence, the Fair Market Value of shares
purchased during a given Offering Period shall be determined as of the Offering Date for such Offering Period. The limitation described in this Section shall be applied in conformance with applicable regulations under Section 423(b)(8) of the Code.

  

	 	9.	PURCHASE PRICE. 

  
 The Purchase Price at which each share of Stock may be acquired in an Offering Period upon the exercise of all or any portion of a
Purchase Right shall be established by the Board; provided, however, that the Purchase Price on each Purchase Date shall not be less than eighty-five percent (85%) of the lesser of (a) the Fair Market Value of a share of Stock on the Offering Date
of the Offering Period or (b) the Fair Market Value of a share of Stock on the Purchase Date. Subject to adjustment as provided below or in Section 22 and unless otherwise provided by the Board, the Purchase Price for each Offering Period shall be
eighty-five percent (85%) of the lesser of (a) the Fair Market Value of a share of Stock on the Offering Date of the Offering Period or (b) the Fair Market Value of a share of Stock on the Purchase Date. Notwithstanding the foregoing, in the event
that (i) the stockholders of the Company approve an amendment to the Plan to increase the maximum aggregate number of shares of Stock issuable under the Plan in accordance with Section 4.1, (ii) all or any portion of such additional shares of Stock
(the “Additional Shares”) are to be issued pursuant to an Offering Period in progress at the time of such stockholder approval and (iii) the Fair Market value per share of Stock on the date of such stockholder approval (the
“Approval Date”) is greater than the Fair Market value per share of Stock on the Offering Date of such Offering period, then, the Board may, in its discretion and without the consent of any
Participant, adjust the Purchase Price for such Offering Period to be an amount equal to eighty-five percent (85%) (or such other percentage as in effect prior to such adjustment) of the lesser of (a) the Fair Market Value of a share of Stock on the
Approval Date or (b) the Fair Market Value of a share of Stock on the Purchase Date. 
  

	 	10.	ACCUMULATION OF PURCHASE PRICE THROUGH PAYROLL
DEDUCTION. 

  
 Except as provided in Section 11.1(b) with respect to the Initial Offering Period, shares of Stock acquired pursuant to the exercise of all or any portion of a Purchase Right may be paid for only by means of payroll
deductions from the Participant’s Compensation accumulated during the Offering Period for which such Purchase Right was granted, subject to the following: 
  

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 10.1 Amount of Payroll Deductions. Except as otherwise provided herein, the amount
to be deducted under the Plan from a Participant’s Compensation on each pay day during an Offering Period shall be determined by the Participant’s Subscription Agreement. The Subscription Agreement shall set forth the percentage of the
Participant’s Compensation to be deducted on each pay day during an Offering Period in whole percentages of not less than one percent (1%) (except as a result of an election pursuant to Section 10.3 to stop payroll deductions effective
following the first pay day during an Offering) or more than fifteen percent (15%). The Board may change the foregoing limits on payroll deductions effective as of any Offering Date. 
  
 10.2 Commencement of Payroll Deductions. Payroll deductions shall commence on the first pay day
following the Offering Date and shall continue to the end of the Offering Period unless sooner altered or terminated as provided herein; provided, however, that with respect to the Initial Offering Period, payroll deductions shall commence as soon
as practicable following the Company’s receipt of the Participant’s Subscription Agreement (delivered no earlier than the Registration Date), if any. 
  

10.3 Election to Change or Stop Payroll Deductions. During an Offering Period, a Participant may elect to increase or decrease
the rate of or to stop deductions from his or her Compensation by delivering to the Company’s designated office an amended Subscription Agreement authorizing such change on or before the “Change Notice Date.” The
“Change Notice Date” shall be a date prior to the beginning of the first pay period for which such election is to be effective as established by the Company from time to time and announced to the Participants. A
Participant who elects, effective following the first pay day of an Offering Period, to decrease the rate of his or her payroll deductions to zero percent (0%) shall nevertheless remain a Participant in the current Offering Period unless such
Participant withdraws from the Plan as provided in Section 12.1. 
  
 10.4 Administrative Suspension of Payroll Deductions. The Company may, in its sole discretion, suspend a Participant’s payroll deductions under the Plan as the Company deems advisable to avoid accumulating
payroll deductions in excess of the amount that could reasonably be anticipated to purchase the maximum number of shares of Stock permitted (a) under the Participant’s Purchase Right or (b) during a calendar year under the limit set forth in
Section 8.3. Unless the Participant has either withdrawn from the Plan as provided in Section 12.1 or has ceased to be an Eligible Employee, payroll deductions shall be resumed at the rate specified in the Participant’s then effective
Subscription Agreement either (i) at the beginning of the next Offering Period if the reason for suspension was clause (a) in the preceding sentence or (ii) at the beginning of the next Offering Period having a first Purchase Date that falls within
the subsequent calendar year if the reason for suspension was clause (b) in the preceding sentence. 
  
 10.5 Participant Accounts. Individual bookkeeping accounts shall be maintained for each Participant. All payroll deductions from a
Participant’s Compensation (and other amounts received from the Participant in the Initial Offering Period) shall be credited to such Participant’s Plan account and shall be deposited with the general funds of the Company. All such amounts
received or held by the Company may be used by the Company for any corporate purpose. 
  

 10 

 10.6 No Interest Paid. Interest shall not be paid on sums deducted from a
Participant’s Compensation pursuant to the Plan or otherwise credited to the Participant’s Plan account. 
  

	 	11.	PURCHASE OF SHARES. 

  
 11.1 Exercise of Purchase Right. 
  
 (a) Generally. Except as provided in Section 11.1(b), on each Purchase Date of an Offering Period,
each Participant who has not withdrawn from the Plan and whose participation in the Offering has not otherwise terminated before such Purchase Date shall automatically acquire pursuant to the exercise of the Participant’s Purchase Right the
number of whole shares of Stock determined by dividing (a) the total amount of the Participant’s payroll deductions accumulated in the Participant’s Plan account during the Offering Period and not previously applied toward the purchase of
Stock by (b) the Purchase Price. However, in no event shall the number of shares purchased by the Participant during an Offering Period exceed the number of shares subject to the Participant’s Purchase Right. No shares of Stock shall be
purchased on a Purchase Date on behalf of a Participant whose participation in the Offering or the Plan has terminated before such Purchase Date. 
  
 (b) Purchase in Initial Offering Period. Notwithstanding Section 11.1(a), on the Purchase Date of the Initial Offering Period, each
Participant who has not withdrawn from the Plan and whose participation in such Offering has not otherwise terminated before such Purchase Date shall automatically acquire pursuant to the exercise of the Participant’s Purchase Right (i) a
number of whole shares of Stock determined in accordance with Section 11.1(a) to the extent of the total amount of the Participant’s payroll deductions accumulated in the Participant’s Plan account during the Initial Offering Period, if
any, and not previously applied toward the purchase of Stock and (ii) such additional shares of Stock (not exceeding in the aggregate the Participant’s Purchase Right) as determined in accordance with an Initial Offering Period Cash Exercise
Notice delivered to the office designated by the Company no earlier than the Registration Date and not later than the close of business for such office on the business day immediately preceding the Purchase Date or such earlier date as the Company
shall establish, accompanied by payment in cash or by check of the Purchase Price for such additional shares. However, in no event shall the number of shares purchased by a Participant during the Initial Offering Period exceed the number of shares
subject to the Participant’s Purchase Right. In addition, if a Participant delivers a Subscription Agreement to the Company after the Registration Date, the Participant may not elect to exercise a Purchase Right pursuant to an Initial Offering
Period Cash Exercise Notice in an amount which, when aggregated with payroll deductions pursuant to such Subscription Agreement, exceeds fifteen percent (15%) of the Participant’s Compensation during the Initial Offering Period. The Company
shall refund to the Participant in accordance with Section 11.4 any excess Purchase Price payment received from the Participant. 
  
 11.2 Pro Rata Allocation of Shares. If the number of shares of Stock which might be purchased by all Participants on a Purchase
Date exceeds the number of shares of Stock available in the Plan as provided in Section 4.1 or the maximum aggregate number of shares of Stock that may be purchased on such Purchase Date pursuant to a limit established by the Board 

  

 11 

 
pursuant to Section 8.1, the Company shall make a pro rata allocation of the shares available in as uniform a manner as practicable and as the Company
determines to be equitable. Any fractional share resulting from such pro rata allocation to any Participant shall be disregarded. 
  
 11.3 Delivery of Certificates. As soon as practicable after each Purchase Date, the Company shall arrange the delivery to each
Participant of a certificate representing the shares acquired by the Participant on such Purchase Date; provided that the Company may deliver such shares to a broker designated by the Company that will hold such shares for the benefit of the
Participant. Shares to be delivered to a Participant under the Plan shall be registered in the name of the Participant, or, if requested by the Participant, in the name of the Participant and his or her spouse, or, if applicable, in the names of the
heirs of the Participant. 
  
 11.4 Return of
Cash Balance. Any cash balance remaining in a Participant’s Plan account following any Purchase Date shall be refunded to the Participant as soon as practicable after such Purchase Date. However, if the cash balance to be returned to a
Participant pursuant to the preceding sentence is less than the amount that would have been necessary to purchase an additional whole share of Stock on such Purchase Date, the Company may retain the cash balance in the Participant’s Plan
account to be applied toward the purchase of shares of Stock in the subsequent Offering Period. 
  
 11.5 Tax Withholding. At the time a Participant’s Purchase Right is exercised, in whole or in part, or at the time a
Participant disposes of some or all of the shares of Stock he or she acquires under the Plan, the Participant shall make adequate provision for the federal, state, local and foreign tax withholding obligations, if any, of the Participating Company
Group which arise upon exercise of the Purchase Right or upon such disposition of shares, respectively. The Participating Company Group may, but shall not be obligated to, withhold from the Participant’s compensation the amount necessary to
meet such withholding obligations. 
  
 11.6
Expiration of Purchase Right. Any portion of a Participant’s Purchase Right remaining unexercised after the end of the Offering Period to which the Purchase Right relates shall expire immediately upon the end of the Offering Period.

  
 11.7 Provision of Reports and Stockholder
Information to Participants. Each Participant who has exercised all or part of his or her Purchase Right shall receive, as soon as practicable after the Purchase Date, a report of such Participant’s Plan account setting forth the total
amount credited to his or her Plan account prior to such exercise, the number of shares of Stock purchased, the Purchase Price for such shares, the date of purchase and the cash balance, if any, remaining immediately after such purchase that is to
be refunded or retained in the Participant’s Plan account pursuant to Section 11.4. The report required by this Section may be delivered in such form and by such means, including by electronic transmission, as the Company may determine. In
addition, each Participant shall be provided information concerning the Company equivalent to that information provided generally to the Company’s common stockholders. 
  

 12 

	 	12.	WITHDRAWAL FROM PLAN. 

  
 12.1 Voluntary Withdrawal from the Plan. A Participant may withdraw from the Plan by signing and
delivering to the Company’s designated office a written notice of withdrawal on a form provided by the Company for this purpose. Such withdrawal may be elected at any time prior to the end of an Offering Period; provided, however, that if a
Participant withdraws from the Plan after a Purchase Date, the withdrawal shall not affect shares of Stock acquired by the Participant on such Purchase Date. A Participant who voluntarily withdraws from the Plan is prohibited from resuming
participation in the Plan in the same Offering from which he or she withdrew, but may participate in any subsequent Offering by again satisfying the requirements of Sections 5 and 7.1. The Company may impose, from time to time, a requirement that
the notice of withdrawal from the Plan be on file with the Company’s designated office for a reasonable period prior to the effectiveness of the Participant’s withdrawal. 
  
 12.2 Return of Payroll Deductions. Upon a Participant’s voluntary withdrawal from the Plan
pursuant to Section 12.1, the Participant’s accumulated Plan account balance which has not been applied toward the purchase of shares of Stock shall be refunded to the Participant as soon as practicable after the withdrawal, without the payment
of any interest, and the Participant’s interest in the Plan and the Offering shall terminate. Such amounts to be refunded in accordance with this Section may not be applied to any other Offering under the Plan. 
  

	 	13.	TERMINATION OF EMPLOYMENT OR ELIGIBILITY. 

  
 Upon a Participant’s ceasing, prior to a Purchase Date,
to be an Employee of the Participating Company Group for any reason, including retirement, disability or death, or upon the failure of a Participant to remain an Eligible Employee, the Participant’s participation in the Plan shall terminate
immediately. In such event, the Participant’s Plan account balance which has not been applied toward the purchase of shares shall, as soon as practicable, be returned to the Participant or, in the case of the Participant’s death, to the
Participant’s beneficiary designated in accordance with Section 20, if any, or legal representative, and all of the Participant’s rights under the Plan shall terminate. Interest shall not be paid on sums returned pursuant to this Section
13. A Participant whose participation has been so terminated may again become eligible to participate in the Plan by satisfying the requirements of Sections 5 and 7.1. 
  

	 	14.	CHANGE IN CONTROL. 

  
 14.1 Definitions. 
  
 (a) An “Ownership Change Event” shall be deemed to have
occurred if any of the following occurs with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of
the Company; (ii) a merger or consolidation in which the Company is a party; (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company; or (iv) a liquidation or dissolution of the Company. 
  
 (b) A “Change in
Control” shall mean an Ownership Change Event or a series of related Ownership Change Events (collectively, the “Transaction”) wherein the 

  

 13 

 
stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as
their ownership of shares of the Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the
Company or, in the case of a Transaction described in Section 14.1(a)(iii), the corporation or other business entity to which the assets of the Company were transferred (the “Transferee”), as the case may be. For purposes of
the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company or the Transferee, as
the case may be, either directly or through one or more subsidiary corporations or other business entities. The Board shall have the right to determine whether multiple sales or exchanges of the voting securities of the Company or multiple Ownership
Change Events are related, and its determination shall be final, binding and conclusive. 
  
 14.2 Effect of Change in Control on Purchase Rights. In the event of a Change in Control, the surviving, continuing, successor, or
purchasing corporation or parent thereof, as the case may be (the “Acquiring Corporation”), may, without the consent of any Participant, assume the Company’s rights and obligations under the
Plan. If the Acquiring Corporation elects not to assume the Company’s rights and obligations under the Plan, the Purchase Date of the then current Offering Period shall be accelerated to a date before the date of the Change in Control specified
by the Board, but the number of shares of Stock subject to outstanding Purchase Rights shall not be adjusted. All Purchase Rights which are neither assumed by the Acquiring Corporation in connection with the Change in Control nor exercised as of the
date of the Change in Control shall terminate and cease to be outstanding effective as of the date of the Change in Control. 
  

	 	15.	NONTRANSFERABILITY OF PURCHASE RIGHTS. 

  
 Neither payroll deductions or other amounts credited to a
Participant’s Plan account nor a Participant’s Purchase Right may be assigned, transferred, pledged or otherwise disposed of in any manner other than as provided by the Plan or by will or the laws of descent and distribution. (A
beneficiary designation pursuant to Section 20 shall not be treated as a disposition for this purpose.) Any such attempted assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an
election to withdraw from the Plan as provided in Section 12.1. A Purchase Right shall be exercisable during the lifetime of the Participant only by the Participant. 
  

	 	16.	COMPLIANCE WITH SECURITIES LAW. 

  
 The issuance of shares under the Plan shall be subject to
compliance with all applicable requirements of federal, state and foreign law with respect to such securities. A Purchase Right may not be exercised if the issuance of shares upon such exercise would constitute a violation of any applicable federal,
state or foreign securities laws or other law or regulations or the requirements of any securities exchange or market system upon which the Stock may then be listed. In addition, no Purchase Right may be exercised unless (a) a registration statement
under the Securities Act of 1933, as amended, shall at the time of exercise 

  

 14 

 
of the Purchase Right be in effect with respect to the shares issuable upon exercise of the Purchase Right, or (b) in the opinion of legal counsel to the
Company, the shares issuable upon exercise of the Purchase Right may be issued in accordance with the terms of an applicable exemption from the registration requirements of said Act. The inability of the Company to obtain from any regulatory body
having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares under the Plan shall relieve the Company of any liability in respect of the failure to issue or sell
such shares as to which such requisite authority shall not have been obtained. As a condition to the exercise of a Purchase Right, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to
evidence compliance with any applicable law or regulation, and to make any representation or warranty with respect thereto as may be requested by the Company. 
  

	 	17.	RIGHTS AS A STOCKHOLDER AND EMPLOYEE.

  
 A Participant shall have no
rights as a stockholder by virtue of the Participant’s participation in the Plan until the date of the issuance of the shares purchased pursuant to the exercise of the Participant’s Purchase Right (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such shares are issued, except as provided in
Section 4.2. Nothing herein shall confer upon a Participant any right to continue in the employ of the Participating Company Group or interfere in any way with any right of the Participating Company Group to terminate the Participant’s
employment at any time. 
  

	 	18.	LEGENDS. 

  
 The Company may at any time place legends or other identifying symbols referencing any applicable federal, state or foreign securities law
restrictions or any provision convenient in the administration of the Plan on some or all of the certificates representing shares of Stock issued under the Plan. The Participant shall, at the request of the Company, promptly present to the Company
any and all certificates representing shares acquired pursuant to a Purchase Right in the possession of the Participant in order to carry out the provisions of this Section. Unless otherwise specified by the Company, legends placed on such
certificates may include but shall not be limited to the following: 
  
 “THE
SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED BY THE CORPORATION TO THE REGISTERED HOLDER UPON THE PURCHASE OF SHARES UNDER AN EMPLOYEE STOCK PURCHASE PLAN AS DEFINED IN SECTION 423 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. THE TRANSFER
AGENT FOR THE SHARES EVIDENCED HEREBY SHALL NOTIFY THE CORPORATION IMMEDIATELY OF ANY TRANSFER OF THE SHARES BY THE REGISTERED HOLDER HEREOF. THE REGISTERED HOLDER SHALL HOLD ALL SHARES PURCHASED UNDER THE PLAN IN THE REGISTERED HOLDER’S NAME
(AND NOT IN THE NAME OF ANY NOMINEE).” 
  

 15 

	 	19.	NOTIFICATION OF DISPOSITION OF SHARES. 

  
 The Company may require the Participant to give the Company
prompt notice of any disposition of shares acquired by exercise of a Purchase Right. The Company may require that until such time as a Participant disposes of shares acquired upon exercise of a Purchase Right, the Participant shall hold all such
shares in the Participant’s name (or, if elected by the Participant, in the name of the Participant and his or her spouse but not in the name of any nominee) until the later of two years after the date of grant of such Purchase Right or one
year after the date of exercise of such Purchase Right. The Company may direct that the certificates evidencing shares acquired by exercise of a Purchase Right refer to such requirement to give prompt notice of disposition. 
  

	 	20.	DESIGNATION OF BENEFICIARY. 

  
 20.1 Designation Procedure. Subject to local laws and procedures, a Participant may file a written
designation of a beneficiary who is to receive (a) shares and cash, if any, from the Participant’s Plan account if the Participant dies subsequent to a Purchase Date but prior to delivery to the Participant of such shares and cash or (b) cash,
if any, from the Participant’s Plan account if the Participant dies prior to the exercise of the Participant’s Purchase Right. If a married Participant designates a beneficiary other than the Participant’s spouse, the effectiveness of
such designation may be subject to the consent of the Participant’s spouse. A Participant may change his or her beneficiary designation at any time by written notice to the Company. 
  
 20.2 Absence of Beneficiary Designation. If a Participant dies without an effective designation
pursuant to Section 20.1 of a beneficiary who is living at the time of the Participant’s death, the Company shall deliver any shares or cash credited to the Participant’s Plan account to the Participant’s legal representative.

  

	 	21.	NOTICES. 

  
 All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 
  

	 	22.	AMENDMENT OR TERMINATION OF THE PLAN.

  
 The Board may at any time
amend, suspend or terminate the Plan, except that (a) no such amendment, suspension or termination shall affect Purchase Rights previously granted under the Plan unless expressly provided by the Board and (b) no such amendment, suspension or
termination may adversely affect a Purchase Right previously granted under the Plan without the consent of the Participant, except to the extent permitted by the Plan or as may be necessary to qualify the Plan as an employee stock purchase plan
pursuant to Section 423 of the Code or to comply with any applicable law, regulation or rule. In addition, an amendment to the Plan must be approved by the stockholders of the Company within twelve (12) months of the adoption of such amendment if
such amendment would authorize the sale of more shares than are then authorized for issuance under the Plan or would change the definition of the 

  

 16 

 
corporations that may be designated by the Board as Participating Companies. Notwithstanding the foregoing, in the event that the Board determines that
continuation of the Plan or an Offering would result in unfavorable financial accounting consequences to the Company as a result of a change after the Effective Date in the generally accepted accounting principles applicable to the Plan, the Board
may, in its discretion and without the consent of any Participant, including with respect to an Offering Period then in progress: (a) terminate the Plan or any Offering Period, (b) accelerate the Purchase Date of any Offering Period, (c) reduce the
discount applicable in determining the Purchase Price of any Offering Period, (d) reduce the maximum number of shares of Stock that may be purchased in any Offering Period or (e) take any combination of the foregoing actions. 
  

 17 

 APPENDIX A 
  
 Participating Companies 
  
 salesforce.com, inc. 
  

 APPENDIX B 
  
 FORMS OF 
  
 SUBSCRIPTION AGREEMENT 
 AND 
 NOTICE OF WITHDRAWAL 
  

 SALESFORCE.COM, INC. 
 2004 EMPLOYEE STOCK PURCHASE PLAN 
 SUBSCRIPTION AGREEMENT 
  

							
	 NAME (Please print):
	  	 
	 	 	

	 	  	(Last)	  	(First)	  	(Middle)

  

	TM	Original application for the Offering Period beginning (date): ____________________________________ 

  

	TM	Change in payroll deduction rate effective with the pay period beginning (date): _____________________ 

  

	TM	Stop payroll deductions effective with the pay period beginning (date): _____________________________ 

  

	TM	Change of beneficiary. 

  

	I.	SUBSCRIPTION 

  
 I elect to participate in the 2004 Employee Stock Purchase Plan (the “Plan”) of salesforce.com, inc. (the “Company”) and
to subscribe to purchase shares of the Company’s Common Stock in accordance with this Subscription Agreement and the Plan. 
  
 I authorize payroll deductions of
                     percent (in whole percentages not less than 1%, unless an election to stop deductions is being made, or more than 15%) of
my Compensation on each pay day throughout the Offering Period in accordance with the Plan. I understand that these payroll deductions will be accumulated for the purchase of shares of Common Stock at the applicable purchase price
determined in accordance with the Plan. Except as otherwise provided by the Plan, I will automatically purchase shares on each Purchase Date unless I withdraw from the Plan by giving written notice on a form provided by the Company or unless
my eligibility or employment terminates. 
  
 I understand that I
will automatically participate in each subsequent Offering that commences immediately after the last day of an Offering in which I am participating until I withdraw from the Plan by giving written notice on a form provided by the Company or my
eligibility or employment terminates. 
  
 Shares I purchase under
the Plan should be issued in the name(s) set forth below. (Shares may be issued in the participant’s name alone or together with the participant’s spouse as community property or in joint tenancy.) 
  

			
	 NAME(S) (please print):
	  	 
	 	 	

  

			
	ADDRESS:	  	 
	 	 	

  

			
	 MY SOCIAL SECURITY NUMBER:
	  	 
	 	 	

  
 I agree to make
adequate provision for the federal, state, local and foreign tax withholding obligations, if any, which arise upon my purchase of shares under the Plan and/or my disposition of shares. The Company may withhold from my compensation the amount
necessary to meet such withholding obligations. 
  
 I agree that,
unless otherwise permitted by the Company, until I dispose of shares I purchase under the Plan, I will hold such shares in the name(s) entered above (and not in the name of any nominee) until the later of (i) two years after the first day of the
Offering Period in which I purchased the shares and (ii) one year after the Purchase Date on which I purchased the shares. This restriction only applies to the name(s) in which shares are held and does not affect my ability to dispose of Plan
shares. 
  

 1 

 I agree that I will notify the Chief Financial Officer of the Company in writing within 30 days after
any sale, gift, transfer or other disposition of any kind prior to the end of the periods referred to in the preceding paragraph (a “Disqualifying Disposition”) of any shares I purchased under the Plan. If I do not respond within 30 days
of the date of a Disqualifying Disposition Survey delivered to me by certified mail, the Company is authorized to treat my nonresponse as my notice to the Company of a Disqualifying Disposition and to compute and report to the Internal Revenue
Service the ordinary income I must recognize upon such Disqualifying Disposition. 
  

	II.	BENEFICIARY DESIGNATION 

  
 In the event of my death, I designate the following as my beneficiary to receive all payments and shares then due me under the Plan: 
  

							
	 BENEFICIARY’S NAME (please print):
	  	

	 	  	(First)	  	(Middle)	  	(Last)

  

							
	 RELATIONSHIP:
	  	 	  	SOC. SEC. NO.:	  	 
	 	 	
	 	 	 	

  

							
	 ADDRESS:
	  	  

  
 If you are married and
your beneficiary is someone other than your spouse, then your spouse must sign and date this form as indicated below. If you are not married when you designate a beneficiary and you later become married, or if you later become married to a different
person, the beneficiary designation previously made will be automatically revoked. Payments and shares then due you upon your death will be delivered to your legal representative unless you have completed a new beneficiary designation and it is
consented to by your then spouse. 
  
 III. CONSENT OF SPOUSE 
  
 I am the spouse of
                                       
                                        
             . I consent to the above designation of a beneficiary other than me to receive payments and shares due my spouse under the Plan. 
  

							
	Date:	  	 	  	 	  	 
	 	 	
	 	 	 	

	 	  	 	  	 	  	Signature of Participant’s Spouse

  
 IV. PARTICIPANT DECLARATION

  
 Any election I have made on this form revokes all prior
elections with regard to this form. 
  
 I am familiar with the
provisions of the Plan and agree to participate in the Plan subject to all of its provisions. I understand that the Board of Directors of the Company reserves the right to terminate the Plan or to amend the Plan and my right to purchase stock under
the Plan to the extent provided by the Plan. I understand that the effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the Plan. 
  

							
	Date:	  	 	  	 	  	 
	 	 	
	 	 	 	

	 	  	 	  	 	  	Signature of Participant

  

 SALESFORCE.COM, INC. 
 2004 EMPLOYEE STOCK PURCHASE PLAN 
 NOTICE OF WITHDRAWAL 
  

							
	 NAME (Please print):
	  	

	 	  	(Last)	  	(First)	  	(Middle)

  
 I elect to withdraw
from the salesforce.com, inc. 2004 Employee Stock Purchase Plan (the “Plan”) and the Offering which began on (date)
                                 and in which I am participating (the
“Current Offering”). 
  
 I understand that I am
terminating immediately my interest in the Plan and the Current Offering, and that no further payroll deductions will be made (provided I have given sufficient notice before the next pay day). My payroll deductions not previously used to purchase
shares will not be used to purchase shares in the Current Offering, but instead will be paid to me as soon as practicable. I understand that I will not participate in the Plan unless I elect to become a participant in another Offering by
filing a new Subscription Agreement with the Company. I understand that I will receive no interest on the amounts paid to me from my Plan account, and that I may not apply such amounts to any other Offering under the Plan or any other employee stock
purchase plan of the Company. 
  

									
	 Date:
	  	 	  	 	  	 Signature:2004 Outside Directors Stock Plan with Options

 Exhibit 10.5 
  
 salesforce.com, inc. 
  
 2004 Outside Directors Stock Plan 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

			
	 1.
	  	Establishment, Purpose and Term of Plan	  	1
	 	  	1.1	  	Establishment	  	1
	 	  	1.2	  	Purpose	  	1
	 	  	1.3	  	Term of Plan	  	1
			
	 2.
	  	Definitions and Construction	  	1
	 	  	2.1	  	Definitions	  	1
	 	  	2.2	  	Construction	  	4
			
	 3.
	  	Administration	  	4
	 	  	3.1	  	Administration by the Board	  	4
	 	  	3.2	  	Authority of Officers	  	4
	 	  	3.3	  	Powers of the Board	  	4
	 	  	3.4	  	Indemnification	  	5
			
	 4.
	  	Shares Subject to Plan	  	6
	 	  	4.1	  	Maximum Number of Shares Issuable	  	6
	 	  	4.2	  	Adjustments for Changes in Capital Structure	  	6
			
	 5.
	  	Eligibility for Participation	  	6
			
	 6.
	  	Terms and Conditions of Outside Director Stock Awards	  	7
	 	  	6.1	  	Automatic Grant of Outside Director Stock Awards	  	7
	 	  	6.2	  	Purchase Price	  	7
	 	  	6.3	  	Vesting	  	7
			
	 7.
	  	Terms and Conditions of Options	  	8
	 	  	7.1	  	Exercise Price	  	8
	 	  	7.2	  	Exercisability and Term of Options	  	8
	 	  	7.3	  	Payment of Exercise Price	  	8
	 	  	7.4	  	Effect of Termination of Service	  	9
	 	  	7.5	  	Transferability of Options	  	10
			
	 8.
	  	Terms and Conditions of Restricted Stock Awards	  	10
	 	  	8.1	  	Purchase Price	  	10
	 	  	8.2	  	Vesting and Restrictions on Transfer	  	11
	 	  	8.3	  	Voting Rights; Dividends and Distributions	  	11
	 	  	8.4	  	Effect of Termination of Service	  	11
	 	  	8.5	  	Nontransferability of Restricted Stock Award Rights	  	11
			
	 9.
	  	Terms and Conditions of Restricted Stock Unit Awards	  	12
	 	  	9.1	  	Purchase Price	  	12
	 	  	9.2	  	Vesting	  	12
	 	  	9.3	  	Voting Rights, Dividend Equivalent Rights and Distributions	  	12
	 	  	9.4	  	Effect of Termination of Service	  	12

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page

	 	  	9.5	  	Settlement of Restricted Stock Unit Awards	  	13
	 	  	9.6	  	Nontransferability of Restricted Stock Unit Awards	  	13
			
	 10.
	  	Standard Forms of Award Agreement	  	13
	 	  	10.1	  	Award Agreement	  	13
	 	  	10.2	  	Authority to Vary Terms	  	13
			
	 11.
	  	Change in Control	  	13
	 	  	11.1	  	Definitions	  	13
	 	  	11.2	  	Effect of Change in Control on Options	  	14
	 	  	11.3	  	Effect of Change in Control on Restricted Stock Awards	  	15
	 	  	11.4	  	Effect of Change in Control on Restricted Stock Unit Awards	  	15
			
	 12.
	  	Compliance with Securities Law	  	15
			
	 13.
	  	Tax Withholding	  	15
	 	  	13.1	  	Tax Withholding in General	  	15
	 	  	13.2	  	Withholding in Shares	  	16
			
	 14.
	  	Amendment or Termination of Plan	  	16
			
	 15.
	  	Miscellaneous Provisions	  	16
	 	  	15.1	  	Repurchase Rights	  	16
	 	  	15.2	  	Provision of Information	  	16
	 	  	15.3	  	Rights as Outside Director	  	16
	 	  	15.4	  	Rights as a Stockholder	  	16
	 	  	15.5	  	Fractional Shares	  	17
	 	  	15.6	  	Severability	  	17
	 	  	15.7	  	Beneficiary Designation	  	17
	 	  	15.8	  	Unfunded Obligation	  	17

  

 -ii- 

 salesforce.com, inc. 
 2004 Outside Directors Stock Plan 
  

	 	1.	ESTABLISHMENT, PURPOSE AND TERM OF
PLAN. 

  
 1.1 Establishment. The salesforce.com, inc. 2004 Outside Directors Stock Plan (the “Plan”) is hereby
established effective as of March 1, 2004, the date of its approval by the stockholders of the Company (the “Effective Date”). 
  

1.2 Purpose. The purpose of the Plan is to advance the interests of the Participating Company Group and its stockholders by
providing an incentive to attract, retain and reward persons performing services as Outside Directors of the Company and by motivating such persons to contribute to the growth and profitability of the Participating Company Group. The Plan seeks to
achieve this purpose by providing for Awards in the form of Options, Restricted Stock, and Restricted Stock Units. 
  
 1.3 Term of Plan. The Plan shall continue in effect until the earlier of its termination by the Board or the date on which all of
the shares of Stock available for issuance under the Plan have been issued and all restrictions on such shares under the terms of the Plan and the agreements evidencing Awards granted under the Plan have lapsed. However, all Awards shall be granted,
if at all, within ten (10) years from the Effective Date. 
  

	 	2.	DEFINITIONS AND CONSTRUCTION. 

  
 2.1 Definitions. Whenever used herein, the following
terms shall have their respective meanings set forth below: 
  
 (a) “Award” means any Option, Restricted Stock or Restricted Stock Unit granted under the Plan. 
  
 (b) “Award Agreement” means a written agreement between the Company and a Participant setting forth the terms,
conditions and restrictions of the Award granted to the Participant. An Award Agreement may be an “Option Agreement,” a “Restricted Stock Agreement” or a “Restricted Stock Units Agreement.” 
  
 (c) “Board” means the Board of
Directors of the Company. If one or more Committees have been appointed by the Board to administer the Plan, “Board” also means such Committee(s). 
  
 (d) “Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated
thereunder. 
  
 (e)
“Committee” means the Compensation Committee or other committee of the Board duly appointed to administer the Plan and having such powers as shall be specified by the Board. Unless the powers of the Committee have been
specifically limited, the Committee shall have all of the powers of the Board granted herein, including, without 

  

 1 

 
limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by law. 

 
 (f) “Company” means
salesforce.com, inc., a Delaware corporation, or any successor corporation thereto. 
  
 (g) “Consultant” means a person engaged to provide consulting or advisory services (other than as an Employee or a
Director) to a Participating Company. 
  
 (h)
“Director” means a member of the Board or of the board of directors of any other Participating Company. 
  
 (i) “Disability” means the permanent and total disability of the Participant within the meaning of Section
22(e)(3) of the Code. 
  
 (j)
“Dividend Equivalent” means a credit, made at the discretion of the Board or as otherwise provided by the Plan, to the account of a Participant in an amount equal to the cash dividends paid on one share of Stock for each
share of Stock represented by an Award held by such Participant. 
  
 (k) “Employee” means any person treated as an employee (including an officer of the Company or a Director who is also treated as an employee) in the records of a Participating Company;
provided, however, that neither service as a Director nor payment of a director’s fee shall be sufficient to constitute employment for purposes of the Plan. 
  
 (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

  
 (m) “Fair Market
Value” means, as of any date, the value of a share of Stock or other property as determined by the Board, in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein,
subject to the following: 
  
 (i) If, on such
date, the Stock is listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Stock shall be the closing price of a share of Stock (or the mean of the closing bid and asked prices of a share of Stock
if the Stock is so quoted instead) as quoted on the Nasdaq National Market, The Nasdaq SmallCap Market or such other national or regional securities exchange or market system constituting the primary market for the Stock, as reported in The Wall
Street Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Stock has traded on such securities exchange or market system, the date on which the Fair Market Value shall be
established shall be the last day on which the Stock was so traded prior to the relevant date, or such other appropriate day as shall be determined by the Board, in its discretion. 
  
 (ii) If, on such date, the Stock is not listed on a national or regional securities exchange or market
system, the Fair Market Value of a share of Stock shall be 

  

 2 

 
as determined by the Board in good faith without regard to any restriction other than a restriction which, by its terms, will never lapse. 
  
 (n) “Officer” means any person
designated by the Board as an officer of the Company. 
  
 (o) “Option” means a right to purchase Stock (subject to adjustment as provided in Section 4.2) pursuant to the terms and conditions of the Plan. Each Option shall be a nonstatutory stock option, that is an option
not intended to qualify as an incentive stock option within the meaning of Section 422(b) of the Code. 
  
 (p) “Outside Director” means a Director of the Company who is not an Employee or a Consultant. 
  
 (q) “Outside Director Stock Award”
means Stock granted to a Participant pursuant to Section 6 of the Plan. 
  
 (r) “Parent Corporation” means any present or future “parent corporation” of the Company, as defined in Section 424(e) of the Code. 
  
 (s) “Participant” means any eligible
person who has been granted one or more Awards. 
  
 (t) “Participating Company” means the Company or any Parent Corporation or Subsidiary Corporation. 
  
 (u) “Participating Company Group” means, at any point in time, all corporations collectively which are then
Participating Companies. 
  
 (v)
“Restriction Period” means the period established in accordance with Section 8.2 of the Plan during which shares subject to a Restricted Stock Award are subject to Vesting Conditions. 
  
 (w) “Restricted Stock” means Stock
granted to a Participant pursuant to Section 6 or Section 8 of the Plan. 
  
 (x) “Restricted Stock Unit” means a bookkeeping entry representing a right granted to a Participant pursuant to Section 9 of the Plan to receive a share of Stock on a date determined in
accordance with the provisions of Section 9 and the Participant’s Award Agreement. 
  
 (y) “Rule 16b-3” means Rule 16b-3 under the Exchange Act, as amended from time to time, or any successor rule or
regulation. 
  
 (z) “Securities
Act” means the Securities Act of 1933, as amended. 
  
 (aa) “Service” means a Participant’s employment or service with the Participating Company Group, whether in the capacity of an Employee, a Director, or a Consultant. A Participant’s
Service shall not be deemed to have terminated merely because of a 

  

 3 

 
change in the capacity in which the Participant renders Service to the Participating Company Group or a change in the Participating Company for which the
Participant renders such Service, provided that there is no interruption or termination of the Participant’s Service. Furthermore, a Participant’s Service shall not be deemed to have terminated if the Participant takes any military leave,
sick leave, or other bona fide leave of absence approved by the Company. Notwithstanding the foregoing, unless otherwise designated by the Company or required by law, a leave of absence shall not be treated as Service for purposes of determining
vesting under a Participant’s Award Agreement. A Participant’s Service shall be deemed to have terminated either upon an actual termination of Service or upon the corporation for which the Participant performs Service ceasing to be a
Participating Company. Subject to the foregoing, the Company, in its discretion, shall determine whether a Participant’s Service has terminated and the effective date of such termination. 
  
 (bb) “Stock” means the common stock
of the Company, as adjusted from time to time in accordance with Section 4.2. 
  
 (cc) “Subsidiary Corporation” means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code. 
  
 (dd) “Vesting Conditions” mean those
conditions established in accordance with Section 8.2 or Section 9.2 of the Plan prior to the satisfaction of which shares of Restricted Stock or Restricted Stock Units remain subject to forfeiture to the Company upon the Participant’s
termination of Service. 
  
 2.2
Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural
and the plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise. 
  

	 	3.	ADMINISTRATION. 

  
 3.1 Administration by the Board. The Plan shall be administered by the Board, including any duly
appointed Committee of the Board. At any time that any class of equity security of the Company is registered pursuant to Section 12 of the Exchange Act, the Plan shall be administered in compliance with the requirements, if any, of Rule 16b-3. All
questions of interpretation of the Plan or of any Award shall be determined by the Board, and such determinations shall be final and binding upon all persons having an interest in the Plan or such Award. 
  
 3.2 Authority of Officers. Any Officer shall have the
authority to act on behalf of the Company with respect to any matter, right, obligation, determination or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has apparent authority with respect
to such matter, right, obligation, determination or election. 
  
 3.3 Powers of the Board. In addition to any other powers set forth in the Plan and subject to the provisions of the Plan, the Board shall have the full and final power and authority, in its discretion:

  
 (a) to determine the persons to whom, and the
time or times at which, Awards shall be granted and the number of shares of Stock or units to be subject to each Award; 
  

 4 

 (b) to determine the type of Award granted; 
  
 (c) to determine the Fair Market Value of shares of Stock or
other property; 
  
 (d) to determine the terms,
conditions and restrictions applicable to each Award (which need not be identical) and any shares acquired pursuant thereto, including, without limitation, (i) the exercise or purchase price of shares purchased pursuant to any Award, (ii) the method
of payment for shares purchased pursuant to any Award, (iii) the method for satisfaction of any tax withholding obligation arising in connection with Award, including by the withholding or delivery of shares of Stock, (iv) the timing, terms and
conditions of the exercisability or vesting of any Award or any shares acquired pursuant thereto, (v) the time of the expiration of any Award, (vi) the effect of the Participant’s termination of Service on any of the foregoing, and (vii) all
other terms, conditions and restrictions applicable to any Award or shares acquired pursuant thereto not inconsistent with the terms of the Plan; 
  
 (e) to approve one or more forms of Award Agreement; 
  
 (f) to amend, modify, extend, cancel or renew any Award or to waive any restrictions or conditions
applicable to any Award or any shares acquired pursuant thereto; 
  
 (g) to accelerate, continue, extend or defer the exercisability or vesting of any Award or any shares acquired pursuant thereto, including with respect to the period following a Participant’s termination of
Service; 
  
 (h) to prescribe, amend or rescind
rules, guidelines and policies relating to the plan, or to adopt sub-plans or supplements to, or alternative versions of, the Plan, including, without limitation, as the Board deems necessary or desirable to comply with the laws or regulations of or
to accommodate the tax policy, accounting principles or custom of, foreign jurisdictions whose citizens may be granted Awards; and 
  
 (i) to correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement and to make all other
determinations and take such other actions with respect to the Plan or any Award as the Board may deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law. 
  
 3.4 Indemnification. In addition to such other rights
of indemnification as they may have as members of the Board or officers or employees of the Participating Company Group, members of the Board and any officers or employees of the Participating Company Group to whom authority to act for the Board or
the Company is delegated shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with
any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof
(provided such settlement 

  

 5 

 
is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding,
except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after
the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same. 
  

	 	4.	SHARES SUBJECT TO PLAN. 

  
 4.1 Maximum Number of Shares Issuable. Subject to
adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be one million (1,000,000) and shall consist of authorized but unissued or reacquired shares of Stock or any combination
thereof. If an outstanding Award for any reason expires or is terminated or canceled without having been exercised or settled in full, or if shares of Stock acquired pursuant to an Award subject to forfeiture or repurchase are forfeited or
repurchased by the Company at the Participant’s purchase price, the shares of Stock allocable to the terminated portion of such Award or such forfeiture or repurchased shares of Stock shall again be available for issuance under the Plan. Shares
of Stock shall not be deemed to have been issued pursuant to the Plan to the extent such shares are withheld in satisfaction of tax withholding obligations pursuant to Section 13.2. If the exercise price of an Option is paid by tender to the
Company, or attestation to the ownership, of shares of Stock owned by the Participant, the number of shares available for issuance under the Plan shall be reduced by the net number of shares for which the Option is exercised. 
  
 4.2 Adjustments for Changes in Capital Structure.
Subject to any required action by the stockholders of the Company, in the event of any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation,
recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of
a dividend or distribution to the stockholders of the Company in a form other than Stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate adjustments shall be made in the number
and class of shares subject to the Plan and to any outstanding Awards, and in the exercise per share under any outstanding Award in order to prevent dilution or enlargement of Participants’ rights under the Plan. For purposes of the foregoing,
conversion of any convertible securities of the Company shall not be treated as “effected without receipt of consideration by the Company.” Any fractional share resulting from an adjustment pursuant to this Section 4.2 shall be rounded
down to the nearest whole number, and in no event may the exercise or purchase price under any Award be decreased to an amount less than the par value, if any, of the stock subject to such Award. The adjustments determined by the Committee pursuant
to this Section 4.2 shall be final, binding and conclusive. 
  

	 	5.	ELIGIBILITY FOR PARTICIPATION. 

  
 Only those persons who, at the time of grant, are serving as
Outside Directors shall be eligible to become Participants and to be granted an Award. 
  

 6 

	 	6.	TERMS AND CONDITIONS OF OUTSIDE DIRECTOR STOCK
AWARDS. 

  
 This Section 6 shall become effective commencing with the first fiscal quarter of the Company beginning after the effective date of the
initial registration by the Company of its Stock under Section 12 of the Exchange Act and shall continue in effect for each subsequent fiscal quarter ending during the term (as provided in Section 1.3) of the Plan. Outside Director Stock Awards
shall be evidenced by Award Agreements specifying the number of shares of Stock covered thereby, in such form as the Board shall from time to time establish. No Outside Director Stock Award or purported Outside Director Stock Award shall be a valid
and binding obligation of the Company unless evidenced by a fully executed Award Agreement. Such Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and
conditions and those terms and conditions set forth in Section 8 which are not inconsistent with the following: 
  
 6.1 Automatic Grant of Outside Director Stock Awards. On the first day of each fiscal quarter of the Company following the
effective date of this Section 6, each Outside Director whose Service has not terminated prior to such date and who served on the Board for the entire preceding fiscal quarter shall be granted automatically and without further action of the Board an
Outside Director Stock Award consisting of a number of shares of Stock determined as follows: 
  
 (a) three thousand seven hundred fifty (3,750) shares of Stock in consideration for the Participant’s service as a Director during
the preceding fiscal quarter; and 
  
 (b) an
additional one thousand two hundred fifty (1,250) shares of Stock in consideration for the Participant’s service on each committee of the Board on which such Participant served for the entire preceding fiscal quarter; and 
  
 (c) an additional one thousand two hundred fifty (1,250)
shares of Stock in consideration for the Participant’s service as the chairperson of each committee of the Board for which such Participant served in such capacity for the entire preceding fiscal quarter; 
  
 Notwithstanding the foregoing, a Participant may elect not to receive an
Outside Director Stock Award by delivering written notice of such election to the Board no later than the day prior to the date such Outside Director Stock Award would otherwise be granted. A Participant so declining an Outside Director Stock Award
shall receive no payment or other consideration in lieu of such declined Award. A Participant who has declined an Outside Director Stock Award may revoke such election by delivering written notice of such revocation to the Board no later than the
day prior to the date such Award would be granted pursuant this Section. 
  
 6.2 Purchase Price. No monetary payment (other than applicable tax withholding, if any) shall be required as a condition of receiving an Outside Director Stock Award, the consideration for which shall be
services actually rendered to the Company or for its benefit during the preceding fiscal quarter of the Company; 
  
 6.3 Vesting. The shares of Stock granted pursuant to an Outside Director Stock Award shall be fully vested on the date of grant.

  

 7 

	 	7.	TERMS AND CONDITIONS OF OPTIONS. 

  
 Options shall be evidenced by Award Agreements specifying
the number of shares of Stock covered thereby, in such form as the Board shall from time to time establish. No Option or purported Option shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement.
Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions: 
  

7.1 Exercise Price. The exercise price for each Option shall be the Fair Market Value of a share of Stock on the effective date
of grant of the Option. Notwithstanding the foregoing, an Option may be granted with an exercise price lower than the minimum exercise price set forth above if such Option is granted pursuant to an assumption or substitution for another option in a
manner that would qualify under the provisions of Section 424(a) of the Code. 
  
 7.2 Exercisability and Term of Options. Options shall be exercisable at such time or times, or upon such event or events, and subject to such terms, conditions, performance criteria and restrictions as shall be
determined by the Board and set forth in the Award Agreement evidencing such Option; provided, however, that no Option shall be exercisable after the expiration of ten (10) years after the effective date of grant of such Option. Subject to the
foregoing, unless otherwise specified by the Board in the grant of an Option, any Option granted hereunder shall terminate ten (10) years after the effective date of grant of the Option, unless earlier terminated in accordance with its provisions.

  
 7.3 Payment of Exercise Price.

  
 (a) Forms of Consideration
Authorized. Except as otherwise provided below, payment of the exercise price for the number of shares of Stock being purchased pursuant to any Option shall be made (i) in cash, by check or cash equivalent, (ii) by tender to the Company, or
attestation to the ownership, of shares of Stock owned by the Participant having a Fair Market Value not less than the exercise price, (iii) by delivery of a properly executed notice of exercise together with irrevocable instructions to a broker
providing for the assignment to the Company of the proceeds of a sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option (including, without limitation, through an exercise complying with the provisions
of Regulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System) (a “Cashless Exercise”), (iv) by such other consideration as may be approved by the Board from time to time to the
extent permitted by applicable law, or (v) by any combination thereof. The Board may at any time or from time to time, by approval of or by amendment to the standard forms of Award Agreement described in Section 10, or by other means, grant Options
which do not permit all of the foregoing forms of consideration to be used in payment of the exercise price or which otherwise restrict one or more forms of consideration. 
  
 (b) Limitations on Forms of Consideration. 
  
 (i) Tender of Stock. Notwithstanding the foregoing,
an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares 

  

 8 

 
of Stock to the extent such tender or attestation would constitute a violation of the provisions of any law, regulation or agreement restricting the
redemption of the Company’s stock. Unless otherwise provided by the Board, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock unless such shares either have been owned by the Participant
for more than six (6) months (and not used for another Option exercise by attestation during such period) or were not acquired, directly or indirectly, from the Company. 
  
 (ii) Cashless Exercise. The Company reserves, at any and all times, the right, in the Company’s
sole and absolute discretion, to establish, decline to approve or terminate any program or procedures for the exercise of Options by means of a Cashless Exercise, including with respect to one or more Participants specified by the Company
notwithstanding that such program or procedures may be available to other Participants. 
  
 7.4 Effect of Termination of Service. 
  
 (a) Option Exercisability. Subject to earlier termination of the Option as otherwise provided herein and unless otherwise
provided by the Board in the grant of an Option and set forth in the Award Agreement, an Option shall be exercisable after a Participant’s termination of Service only during the applicable time period determined in accordance with this Section
7.4 and thereafter shall terminate: 
  
 (i)
Disability. If the Participant’s Service terminates because of the Disability of the Participant, the Option, to the extent unexercised and exercisable on the date on which the Participant’s Service terminated, may be exercised by
the Participant (or the Participant’s guardian or legal representative) at any time prior to the expiration of twelve (12) months (or such longer period of time as determined by the Board, in its discretion) after the date on which the
Participant’s Service terminated, but in any event no later than the date of expiration of the Option’s term as set forth in the Award Agreement evidencing such Option (the “Option Expiration
Date”). 
  
 (ii) Death. If the Participant’s Service terminates because of the death of the Participant, the Option, to the extent unexercised and exercisable on the date on which the Participant’s Service terminated, may be exercised
by the Participant’s legal representative or other person who acquired the right to exercise the Option by reason of the Participant’s death at any time prior to the expiration of twelve (12) months (or such longer period of time as
determined by the Board, in its discretion) after the date on which the Participant’s Service terminated, but in any event no later than the Option Expiration Date. The Participant’s Service shall be deemed to have terminated on account of
death if the Participant dies within three (3) months (or such longer period of time as determined by the Board, in its discretion) after the Participant’s termination of Service. 
  
 (iii) Termination After Change in Control. If the Participant’s Service terminates for any
reason except Disability or death upon or within twelve (12) months following a Change in Control (a “Termination After Change in Control”), then the Option (unless terminated pursuant to Section 11.2), to the extent
unexercised and exercisable on the date on which the Participant’s Service terminated, may be exercised by the Participant (or the Participant’s guardian or legal representative) at any time prior to the expiration of six (6) months (or
such longer period of time as determined by the Board, in its 

  

 9 

 
discretion) after the date on which the Participant’s Service terminated, but in any event no later than the Option Expiration Date. 
  
 (iv) Other Termination of Service. If the
Participant’s Service terminates for any reason, except Disability, death or Termination After Change in Control, the Option, to the extent unexercised and exercisable by the Participant on the date on which the Participant’s Service
terminated, may be exercised by the Participant at any time prior to the expiration of three (3) months (or such longer period of time as determined by the Board, in its discretion) after the date on which the Participant’s Service terminated,
but in any event no later than the Option Expiration Date. 
  
 (b) Extension if Exercise Prevented by Law. Notwithstanding the foregoing, if the exercise of an Option within the applicable time periods set forth in Section 7.4(a) is prevented by the provisions of Section
12 below, the Option shall remain exercisable until three (3) months (or such longer period of time as determined by the Board, in its discretion) after the date the Participant is notified by the Company that the Option is exercisable, but in any
event no later than the Option Expiration Date. 
  
 (c) Extension if Participant Subject to Section 16(b). Notwithstanding the foregoing, if a sale within the applicable time periods set forth in Section 7.4(a) of shares acquired upon the exercise of the Option would subject the
Participant to suit under Section 16(b) of the Exchange Act, the Option shall remain exercisable until the earliest to occur of (i) the tenth (10th) day following the date on which a sale of such shares by the Participant would no longer be subject
to such suit, (ii) the one hundred and ninetieth (190th) day after the Participant’s termination of Service, or (iii) the Option Expiration Date. 
  
 7.5 Transferability of Options. During the lifetime of the Participant, an Option shall be exercisable only by the Participant or
the Participant’s guardian or legal representative. Prior to the issuance of shares of Stock upon the exercise of an Option, the Option shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment,
pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution. Notwithstanding the foregoing, to the extent permitted by the Board, in
its discretion, and set forth in the Award Agreement evidencing such Option, an Option shall be assignable or transferable subject to the applicable limitations, if any, described in the General Instructions to Form S-8 Registration Statement under
the Securities Act. 
  

	 	8.	TERMS AND CONDITIONS OF RESTRICTED STOCK
AWARDS. 

  
 Restricted Stock Awards shall be evidenced by Award Agreements specifying the number of shares of Stock subject to the Award, in such form as the Board shall from time to time establish. No Restricted Stock Award or
purported Restricted Stock Award shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement. Award Agreements evidencing Restricted Stock may incorporate all or any of the terms of the Plan by
reference and shall comply with and be subject to the following terms and conditions: 
  
 8.1 Purchase Price. No monetary payment (other than applicable tax withholding, if any) shall be required as a condition of
receiving shares of Restricted Stock, the 

  

 10 

 
consideration for which shall be services actually rendered to a Participating Company or for its benefit. Notwithstanding the foregoing, if required by
applicable law, the Participant shall furnish consideration in the form of cash or past services rendered to a Participating Company or for its benefit having a value not less than the par value of the shares of Restricted Stock subject to such
Award. 
  
 8.2 Vesting and Restrictions on
Transfer. Shares issued pursuant to any Restricted Stock Award may or may not be made subject to Vesting Conditions based upon the satisfaction of such Service requirements, conditions, restrictions or performance criteria as shall be
established by the Board and set forth in the Award Agreement evidencing such Award. During any Restriction Period in which shares acquired pursuant to a Restricted Stock Award remain subject to Vesting Conditions, such shares may not be sold,
exchanged, transferred, pledged, assigned or otherwise disposed of other than pursuant to an Ownership Change Event, as defined in Section 11.1, or as provided in Section 8.5. Upon request by the Company, each Participant shall execute any agreement
evidencing such transfer restrictions prior to the receipt of shares of Restricted Stock hereunder and shall promptly present to the Company any and all certificates representing shares of Restricted Stock acquired hereunder for the placement on
such certificates of appropriate legends evidencing any such transfer restrictions. 
  
 8.3 Voting Rights; Dividends and Distributions. Except as provided in this Section, Section 8.2 and any Award Agreement, during the
Restriction Period applicable to shares subject to a Restricted Stock Award, the Participant shall have all of the rights of a stockholder of the Company holding shares of Stock, including the right to vote such shares and to receive all dividends
and other distributions paid with respect to such shares. However, in the event of a dividend or distribution paid in shares of Stock or any other adjustment made upon a change in the capital structure of the Company as described in Section 4.2,
then any and all new, substituted or additional securities or other property (other than normal cash dividends) to which the Participant is entitled by reason of the Participant’s Restricted Stock Award shall be immediately subject to the same
Vesting Conditions as the shares subject to the Restricted Stock Award with respect to which such dividends or distributions were paid or adjustments were made. 
  
 8.4 Effect of Termination of Service. Unless otherwise provided by the Board in the grant of a
Restricted Stock Award and set forth in the Award Agreement, if a Participant’s Service terminates for any reason, whether voluntary or involuntary (including the Participant’s death or disability), then the Participant shall forfeit to
the Company any shares acquired by the Participant pursuant to a Restricted Stock Award which remain subject to Vesting Conditions as of the date of the Participant’s termination of Service. 
  
 8.5 Nontransferability of Restricted Stock Award
Rights. Prior to the issuance of shares of Stock pursuant to a Restricted Stock Award, rights to acquire such shares shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance or
garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or the laws of descent and distribution. All rights with respect to a Restricted Stock Award granted to a Participant hereunder shall be
exercisable during his or her lifetime only by such Participant or the Participant’s guardian or legal representative. 
  

 11 

	 	9.	TERMS AND CONDITIONS OF RESTRICTED STOCK UNIT
AWARDS. 

  
 Restricted Stock Unit Awards shall be evidenced by Award Agreements specifying the number of Restricted Stock Units subject to the Award, in such form as the Board shall from time to time establish. No Restricted
Stock Unit Award or purported Restricted Stock Unit Award shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement. Award Agreements evidencing Restricted Stock Units may incorporate all or any of
the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions: 
  
 9.1 Purchase Price. No monetary payment (other than applicable tax withholding, if any) shall be required as a condition of
receiving a Restricted Stock Unit Award, the consideration for which shall be services actually rendered to a Participating Company or for its benefit. 
  
 9.2 Vesting. Restricted Stock Units may or may not be made subject to Vesting Conditions based upon the satisfaction of such
Service requirements, conditions, restrictions or performance criteria, as shall be established by the Board and set forth in the Award Agreement evidencing such Award. 
  
 9.3 Voting Rights, Dividend Equivalent Rights and Distributions. Participants shall have no voting
rights with respect to shares of Stock represented by Restricted Stock Units until the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).
However, the Board, in its discretion, may provide in the Award Agreement evidencing any Restricted Stock Unit Award that the Participant shall be entitled to receive Dividend Equivalents with respect to the payment of cash dividends on Stock having
a record date prior to date on which Restricted Stock Units held by such Participant are settled. Such Dividend Equivalents, if any, shall be paid by crediting the Participant with additional whole Restricted Stock Units as of the date of payment of
such cash dividends on Stock. The number of additional Restricted Stock Units (rounded to the nearest whole number) to be so credited shall be determined by dividing (a) the amount of cash dividends paid on such date with respect to the number of
shares of Stock represented by the Restricted Stock Units previously credited to the Participant by (b) the Fair Market Value per share of Stock on such date. Such additional Restricted Stock Units shall be subject to the same terms and conditions
and shall be settled in the same manner and at the same time (or as soon thereafter as practicable) as the Restricted Stock Units originally subject to the Restricted Stock Unit Award. In the event of a dividend or distribution paid in shares of
Stock or any other adjustment made upon a change in the capital structure of the Company as described in Section 4.2, appropriate adjustments shall be made in the Participant’s Restricted Stock Unit Award so that it represents the right to
receive upon settlement any and all new, substituted or additional securities or other property (other than normal cash dividends) to which the Participant would be entitled by reason of the shares of Stock issuable upon settlement of the Award, and
all such new, substituted or additional securities or other property shall be immediately subject to the same Vesting Conditions as are applicable to the Award. 
  
 9.4 Effect of Termination of Service. Unless otherwise provided by the Board in the grant of a
Restricted Stock Unit Award and set forth in the Award Agreement, if a Participant’s Service terminates for any reason, whether voluntary or involuntary (including the 

  

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Participant’s death or disability), then the Participant shall forfeit to the Company any Restricted Stock Units pursuant to the Award which remain
subject to Vesting Conditions as of the date of the Participant’s termination of Service. 
  
 9.5 Settlement of Restricted Stock Unit Awards. The Company shall issue to a Participant on the date on which Restricted Stock
Units subject to the Participant’s Restricted Stock Unit Award vest or on such other settlement date determined by the Board, in its discretion, and set forth in the Award Agreement one (1) share of Stock (and/or any other new, substituted or
additional securities or other property pursuant to an adjustment described in Section 9.3) for each Restricted Stock Unit then becoming vested or otherwise to be settled on such date, subject to the withholding of applicable taxes, if any.
Notwithstanding the foregoing, if permitted by the Board and set forth in the Award Agreement, the Participant may elect in accordance with terms specified in the Award Agreement to defer receipt of all or any portion of the shares of Stock or other
property otherwise issuable to the Participant pursuant to this Section. 
  
 9.6 Nontransferabilityof Restricted Stock Unit Awards. Prior to the issuance of shares of Stock in settlement of a Restricted Stock Unit Award, the Award shall not be subject in any manner to
anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution. All rights
with respect to a Restricted Stock Unit Award granted to a Participant hereunder shall be exercisable during his or her lifetime only by such Participant or the Participant’s guardian or legal representative. 
  

	 	10.	STANDARD FORMS OF AWARD AGREEMENT.

  
 10.1 Award
Agreement. Each Award shall comply with and be subject to the terms and conditions set forth in the appropriate form of Award Agreement approved by the Board and as amended from time to time. Any Award Agreement may consist of an
appropriate form of Notice of Grant and a form of Agreement incorporated therein by reference, or such other form or forms as the Board may approve from time to time. 
  
 10.2 Authority to Vary Terms. The Board shall have the authority from time to time to vary the
terms of any standard form of Award Agreement either in connection with the grant or amendment of an individual Award or in connection with the authorization of a new standard form or forms; provided, however, that the terms and conditions of any
such new, revised or amended standard form or forms of Award Agreement are not inconsistent with the terms of the Plan. 
  

	 	11.	CHANGE IN CONTROL. 

  
 11.1 Definitions. 
  
 (a) An “Ownership Change
Event” shall be deemed to have occurred if any of the following occurs with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related transactions by the
stockholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in 

  

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which the Company is a party; (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company; or (iv) a liquidation or
dissolution of the Company. 
  
 (b) A
“Change in Control” shall mean an Ownership Change Event or a series of related Ownership Change Events (collectively, a “Transaction”) wherein the stockholders of the Company immediately
before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership
of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the Company or, in the case of a Transaction described in Section 11.1(a)(iii), the corporation or other business entity to which the assets
of the Company were transferred (the “Transferee”), as the case may be. For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from
ownership of the voting securities of one or more corporations or other business entities which own the Company or the Transferee, as the case may be, either directly or through one or more subsidiary corporations or other business entities. The
Board shall have the right to determine whether multiple sales or exchanges of the voting securities of the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and conclusive. 
  
 11.2 Effect of Change in Control on Options.

  
 (a) Accelerated
Vesting. Notwithstanding any other provision of the Plan to the contrary, in the event of a Change in Control, each Option held by a Participant whose Service has not terminated prior to the date of such Change in Control shall
become immediately exercisable and vested in full as of such date, subject to the consummation of the Change in Control. 
  
 (b) Assumption or Substitution. In the event of a Change in Control, the surviving, continuing, successor, or purchasing
entity or parent thereof, as the case may be (the “Acquiror”), may, without the consent of any Participant, either assume the Company’s rights and obligations under outstanding Options or substitute
for outstanding Options substantially equivalent options for the Acquiror’s stock. Any Options which are not assumed by the Acquiror in connection with the Change in Control nor exercised as of the time of consummation of the Change in Control
shall terminate and cease to be outstanding effective as of the time of consummation of the Change in Control. 
  
 (c) Cash-Out of Options. The Board may, in its sole discretion and without the consent of any Participant, determine that,
upon the occurrence of a Change in Control, each or any Option outstanding immediately prior to the Change in Control shall be canceled in exchange for a payment with respect to each vested share of Stock subject to such canceled Option in (i) cash,
(ii) stock of the Company or of a corporation or other business entity a party to the Change in Control, or (iii) other property which, in any such case, shall be in an amount having a Fair Market Value equal to the excess of the Fair Market Value
of the consideration to be paid per share of Stock in the Change in Control over the exercise price per share under such Option (the “Spread “). In the event such determination is made by the Board, the Spread (reduced by
applicable withholding taxes, if any) shall be paid to Participants in 

  

 14 

 
respect of their canceled Options as soon as practicable following the date of the Change in Control. 
  
 11.3 Effect of Change in Control on Restricted Stock
Awards. The Board may, in its discretion, provide in any Award Agreement evidencing a Restricted Stock Award that, in the event of a Change in Control, the lapsing of the Restriction Period applicable to the shares subject to the Restricted
Stock Award held by a Participant whose Service has not terminated prior to such date shall be accelerated effective immediately prior to the consummation of the Change in Control to such extent as specified in such Award Agreement. Any acceleration
of the lapsing of the Restriction Period that was permissible solely by reason of this Section 11.3 and the provisions of such Award Agreement shall be conditioned upon the consummation of the Change in Control. 
  
 11.4 Effect of Change in Control on Restricted Stock Unit
Awards. The Board may, in its discretion, provide in any Award Agreement evidencing a Restricted Stock Unit Award that, in the event of a Change in Control, the Restricted Stock Unit Award held by a Participant whose Service has not terminated
prior to such date shall be settled effective as of the date of the Change in Control to such extent as specified in such Award Agreement. 
  

	 	12.	COMPLIANCE WITH SECURITIES LAW. 

  
 The grant of Awards and the issuance of shares of Stock
pursuant to any Award shall be subject to compliance with all applicable requirements of federal, state and foreign law with respect to such securities and the requirements of any stock exchange or market system upon which the Stock may then be
listed. In addition, no Award may be exercised or shares issued pursuant to an Award unless (i) a registration statement under the Securities Act shall at the time of such exercise or issuance be in effect with respect to the shares issuable
pursuant to the Award or (ii) in the opinion of legal counsel to the Company, the shares issuable pursuant to the Award may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act.
The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares hereunder shall relieve the Company
of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to issuance of any Stock, the Company may require the Participant to satisfy any qualifications
that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. 
  

	 	13.	TAX WITHHOLDING. 

  

13.1 Tax Withholding in General. The Company shall have the right to deduct from any and all payments made under the Plan, or to
require the Participant, through payroll withholding, cash payment or otherwise, including by means of a Cashless Exercise of an Option, to make adequate provision for, the federal, state, local and foreign taxes, if any, required by law to be
withheld by the Participating Company Group with respect to an Award or the shares acquired pursuant thereto. The Company shall have no obligation to deliver shares of Stock, to release shares of Stock from an escrow established pursuant to an Award
Agreement, 

  

 15 

 
or to make any payment in cash under the Plan until the Participating Company Group’s tax withholding obligations have been satisfied by the
Participant. 
  
 13.2 Withholding in
Shares. The Company shall have the right, but not the obligation, to deduct from the shares of Stock issuable to a Participant upon the exercise or settlement of an Award, or to accept from the Participant the tender of, a number of whole shares
of Stock having a Fair Market Value, as determined by the Company, equal to all or any part of the tax withholding obligations of the Participating Company Group. The Fair Market Value of any shares of Stock withheld or tendered to satisfy any such
tax withholding obligations shall not exceed the amount determined by the applicable minimum statutory withholding rates. 
  

	 	14.	AMENDMENT OR TERMINATION OF PLAN.

  
 The Board may amend, suspend or
terminate the Plan at any time. However, without the approval of the Company’s stockholders, there shall be (a) no increase in the maximum aggregate number of shares of Stock that may be issued under the Plan (except by operation of the
provisions of Section 4.2) and (b) no other amendment of the Plan that would require approval of the Company’s stockholders under any applicable law, regulation or rule. No amendment, suspension or termination of the Plan shall affect any then
outstanding Award unless expressly provided by the Board. In any event, no amendment, suspension or termination of the Plan may adversely affect any then outstanding Award without the consent of the Participant unless necessary to comply with any
applicable law, regulation or rule. 
  

	 	15.	MISCELLANEOUS PROVISIONS. 

  
 15.1 Repurchase Rights. Shares issued under the Plan
may be subject to one or more repurchase options, or other conditions and restrictions as determined by the Board in its discretion at the time the Award is granted. The Company shall have the right to assign at any time any repurchase right it may
have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company. Upon request by the Company, each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of
shares of Stock hereunder and shall promptly present to the Company any and all certificates representing shares of Stock acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions.

  
 15.2 Provision of Information. Each
Participant shall be given access to information concerning the Company equivalent to that information generally made available to the Company’s common stockholders. 
  
 15.3 Rights as Outside Director. No person, even though eligible pursuant to Section 5, shall have a
right to be selected as a Participant, or, having been so selected, to be selected again as a Participant. Nothing in the Plan or any Award granted under the Plan shall confer on any Participant a right to remain an Outside Director, or interfere
with or limit in any way any right of a Participating Company to terminate the Participant’s Service at any time. 
  
 15.4 Rights as a Stockholder. A Participant shall have no rights as a stockholder with respect to any shares covered by an Award
until the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of a duly 

  

 16 

 
authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the
date such shares are issued, except as provided in Section 4.2 or another provision of the Plan. 
  
 15.5 Fractional Shares. The Company shall not be required to issue fractional shares upon the exercise or settlement of any Award.

  
 15.6 Severability. If any one
or more of the provisions (or any part thereof) of this Plan shall be held invalid, illegal or unenforceable in any respect, such provision shall be modified so as to make it valid, legal and enforceable, and the validity, legality and
enforceability of the remaining provisions (or any part thereof) of the Plan shall not in any way be affected or impaired thereby. 
  
 15.7 Beneficiary Designation. Subject to local laws and procedures, each Participant may file with the Company a written
designation of a beneficiary who is to receive any benefit under the Plan to which the Participant is entitled in the event of such Participant’s death before he or she receives any or all of such benefit. Each designation will revoke all prior
designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. If a married Participant designates a
beneficiary other than the Participant’s spouse, the effectiveness of such designation may be subject to the consent of the Participant’s spouse. If a Participant dies without an effective designation of a beneficiary who is living at the
time of the Participant’s death, the Company will pay any remaining unpaid benefits to the Participant’s legal representative. 
  
 15.8 Unfunded Obligation. Participants shall have the status of general unsecured creditors of the Company. Any amounts payable to
Participants pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974. No Participating Company shall be required to segregate
any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the
Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Participant account shall not create or constitute a trust or fiduciary relationship between the Board or any
Participating Company and a Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant’s creditors in any assets of any Participating Company. The Participants shall have no claim against any
Participating Company for any changes in the value of any assets which may be invested or reinvested by the Company with respect to the Plan. 
  

 17

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