Salesforce.com 2009 Annual Report Download - page 90

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Table of Contents
salesforce.com, inc.
Notes to Consolidated Financial Statements—(Continued)
at all. In addition, many of the Company's subscription agreements require the Company to indemnify the Company's customers for third-party intellectual
property infringement claims, which could increase the cost to the Company of an adverse ruling on such a claim. Any adverse determination related to
intellectual property claims or litigation could prevent the Company from offering its service to others, could be material to the Company's net income or cash
flows or both of a particular quarter or could otherwise adversely affect the Company's operating results.
10. Employee Benefit Plan
The Company has a 401(k) plan covering all eligible employees in the United States. Since January 1, 2006, the Company has been contributing to the
plan. Total Company contributions during fiscal 2010, 2009 and 2008, were $8.5 million, $6.7 million and $3.9 million, respectively.
11. Related-Party Transactions
In January 1999, the salesforce.com/foundation, also referred to as the Foundation, a non-profit public charity, was chartered to build philanthropic
programs that are focused on youth and technology. The Company's chairman is the chairman of the Foundation. He, one of the Company's employees and
one of the Company's board members hold three of the Foundation's seven board seats. The Company is not the primary beneficiary of the Foundation's
activities, and accordingly, the Company does not consolidate the Foundation's statement of activities with its financial results.
Since the Foundation's inception, the Company has provided at no charge certain resources to Foundation employees such as office space. The value of
these items totals approximately $35,000 per quarter during fiscal year 2010.
In addition to the resource sharing with the Foundation, the Company issued the Foundation warrants in August 2002 to purchase 500,000 shares of
common stock which were all exercised in prior years. As of January 31, 2010, the Foundation held 142,500 shares of salesforce.com common stock.
Additionally, the Company has donated subscriptions to the Company's service to other qualified non-profit organizations. The fair value of these donated
subscriptions were in excess of $3.7 million per month during fiscal 2010. The Company currently plans to continue providing free subscriptions to qualified
non-profit organizations through its relationship with the Foundation.
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