Salesforce.com 2008 Annual Report Download - page 91

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Table of Contents
salesforce.com, inc.
Notes to Consolidated Financial Statements—(Continued)
Company's consolidated results of operations, cash flows or its financial position. However, depending on the nature and timing of any such dispute, an
unfavorable resolution of a matter could materially affect the Company's future results of operations, cash flows or financial position in a particular period.
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 contributions during fiscal 2009, 2008 and 2007, were $6.7 million, $3.9 million and $2.9 million, respectively.
11. Related-Party Transactions
In January 1999, the salesforce.com/foundation, commonly 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
officers 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.
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. Through January 31, 2009, the Foundation exercised all of these warrants. As of January 31, 2009, the Foundation held 191,500 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 is in excess of $5.1 million per month. The Company plans to continue providing free subscriptions to qualified non-
profit organizations through its relationship with the Foundation.
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