Salesforce.com 2010 Annual Report Download - page 30

Table of Contents
ITEM 2. PROPERTIES
Our executive offices and principal office for domestic marketing, sales, professional services and development occupy over 625,000 square feet in the
San Francisco Bay Area under leases that expire at various times through July 2020. We also lease space in various locations throughout the United States for
local sales and professional services personnel. Our foreign subsidiaries lease office space for their operations including local sales and professional services
personnel. In November 2010, we purchased approximately 14 acres of undeveloped land in San Francisco, California including entitlements and
improvements associated with the land, and perpetual parking rights in an existing garage. We plan to use the land to build a facility that will become our new
global headquarters.
We believe that our existing facilities and offices are adequate to meet our current requirements. See Note 8, "Commitments," in the Notes to the
Consolidated Financial Statements for more information about our lease commitments. If we require additional space, we believe that we will be able to
obtain such space on acceptable, commercially reasonable terms.
ITEM 3. LEGAL PROCEEDINGS
We are involved in various legal proceedings arising from the normal course of business activities, including claims of alleged infringement of third-
party patents and other intellectual property rights, commercial, employment and other matters. We make a provision for a liability relating to legal
proceedings when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed
at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining
to a particular case. In management's opinion, resolution of these matters is not expected to have a material adverse impact on our consolidated results of
operations, cash flows or financial position. However, depending on the nature and timing of any such dispute, an unfavorable resolution of a matter could
materially affect our future results of operations or cash flows or both.
Many of our subscription agreements require us to indemnify our customers for third-party intellectual property infringement claims, which could
increase the cost to us of an adverse ruling on such a claim. Any adverse determination related to intellectual property claims or litigation could prevent us
from offering our service to others, could be material to our net income or cash flows or both or could otherwise adversely affect our operating results.
ITEM 4. RESERVED
ITEM 4A. EXECUTIVE OFFICERS OF THE REGISTRANT
The following sets forth certain information regarding our current executive officers (in alphabetical order):
Name Age Position
Marc Benioff 46 Chairman of the Board of Directors and Chief Executive Officer
Parker Harris 44 Executive Vice President, Technology
George Hu 36 Executive Vice President, Platform and Marketing
David Schellhase 47 Executive Vice President, Legal
Graham Smith 51 Executive Vice President and Chief Financial Officer
Frank van Veenendaal 51 President, Worldwide Sales and Services
Marc Benioff co-founded salesforce.com in February 1999 and has served as Chairman of the Board of Directors since inception. He has served as
Chief Executive Officer since November 2001. From 1986 to 1999, Mr. Benioff was employed at Oracle Corporation where he held a number of positions in
sales, marketing and product development, lastly as a Senior Vice President. Mr. Benioff also serves as Chairman of the Board of
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