Document:

Joint Venture Agreement

 EXHIBIT 10.12 
  
 JOINT VENTURE AGREEMENT 
  
 THIS JOINT VENTURE AGREEMENT (this “Agreement”) is entered into as of this day of December 7, 2000 (the “Effective Date”) by
and among Salesforce.com, Inc., a Delaware corporation with its principal place of business at The Landmark @ One Market, Suite 300, San Francisco, California, United States of America (“SFDC”), SunBridge, Inc., a Japanese corporation with
its principal place of business at Shibuya Mark City 17F, 1-12-1 Dogenzaka, Shibuya-ku, Tokyo, Japan (“SB”) and Kabushiki Kaisha salesforce.com, a Japanese corporation with its principal place of business at Shibuya Mark City 17F, 1-12-1
Dogenzaka, Shibuya-ku, Tokyo, Japan (the “Company”). 
  
 W I T N E S S E T H 
  
 WHEREAS, SFDC and SB (hereinafter referred to individually as a “Party” and collectively as the “Parties”) wish to establish a joint venture under the laws of Japan to engage in
the business of providing salesforce.com products and services in the Japanese market, and all other activities incidental thereto, to the extent permissible under applicable laws in Japan, on the terms and conditions set out below; and 

 
 WHEREAS, SFDC and SB are desirous of cooperating with and
assisting each other in all respects related to this joint undertaking so as to ensure its smooth and successful operation; and 
  
 WHEREAS, SB is a Japanese business incubator and the sole shareholder, holding 100% of the common stock of the Company which was established
solely in order to make preparations for the joint venture business envisioned herein; and 
  
 WHEREAS, the Parties intend for this Agreement to serve as an agreement governing the relationship between and among the Parties as to the operation, management and shareholdings in the Company;

  
 NOW, THEREFORE, in consideration of the mutual
covenants, undertakings, and obligations herein contained, and intending to be legally bound hereby, the Parties agree as follows: 
  

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 ARTICLE I 
  

FORMATION AND CAPITALIZATION OF CORPORATION 
  
 Section 1.1 Incorporation of Corporation. SB has incorporated the Company in the form of a stock company (kabushiki kaisha)
organized under the laws of Japan. Such corporation was named “kabushiki kaisha salesforce.com” or “kabushiki kaisha sehrusu fohsu dotto komu” in Japanese. SB contributed Ten Million Yen
(¥10,000,000) to the Company to provide the initial capital necessary for the Company to incorporate under the laws of Japan in return for Two Hundred (200) shares of the Common Stock at a price of Fifty Thousand Yen (¥50,000) per share. SB
was the incorporator of the Company. 
  
 Section 1.2 Subsequent
Contributions. Subsequent to incorporation, SB contributed in the aggregate Forty Million, Seven Thousand and Two Hundred Yen (¥40,007,200) in additional capital for Ninety Nine Thousand Eight Hundred (99,800) shares of the Common Stock,
resulting in a total holding of 100,000 shares obtained at an average price of 500.072 yen per share, all of which are held by SB. 
  
 Section 1.3 Purpose of Company. The corporate purpose of the Company shall be to engage in and provide salesforce.com application services to
Japanese customers in a manner similar to the services currently provided by SFDC in the United States and utilizing the technology and know-how developed by SFDC pursuant to the License Agreement (as defined below), including all activities
incidental thereto (the “Business”). 
  
 Section 1.4
Recapitalization. 
  
 The Company currently has total authorized capital
consisting of Four Hundred Thousand (400,000) shares of common stock having no par value (the “Common Stock”). At the Closing (as defined in Section 3.1), SFDC shall contribute in the aggregate One Hundred Fifty Million Yen
(¥150,000,000) in return for Three Hundred Thousand (300,000) shares of the Company’s Common Stock at a price of 500 yen per share. The company’s authorized shares will then be increased to 1,600,000 shares. 
  
 Section 1.5 Additional Capitalization. 
  
 The Parties acknowledge that the Company will seek additional capital through a round of
financing with one or more strategic investors and one or more financial institutions. It is anticipated the investors would receive approximately 10% of the outstanding shares in 

  

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exchange for the investment, with the timing, valuation and other terms of the financing to be determined. 
  
 Section 1.6 Preemptive Rights. At any time following the Closing, each
of SB and SFDC shall have a preemptive right (but not obligation) to purchase a pro rata portion (equal to such Party’s ownership interest in the Company) of any new issuance by the Company of equity securities, except when such new issuance is
expressly for the purpose of implementing equity participation for employees of the Company and except for the financing from third party investors pursuant to Section 1.5. In the event that SB or SFDC elects not to subscribe for such Party’s
full pro rata share of any newly issued securities, the other Party shall be entitled to purchase any of the unsubscribed securities. Such preemptive rights shall terminate upon an initial public offering by the Company of its equity securities
(“IPO”) 
  
 Section 1.7 Employee Incentive
Stock. The Parties intend, promptly following the successful completion of the Closing and increase in the authorized shares of the Company as contemplated by Section 1.4, that the Board of Directors of the Company (the “Board”) and
the shareholders will approve and implement an employee stock ownership plan authorizing 44,000 shares of Common Stock to be issued, of which 22,000 will be issued to Akira Kitamura, the representative director of the Company, for cash in the amount
of Eleven Million Yen (¥11,000,000). The remaining 22,000 shares, subject to applicable accounting and legal rules, will be reserved for issuances of options to employees pursuant to an option pool. The number of shares reserved under the option
pool may not be increased unless such increase is approved unanimously by the Board, by a majority the shareholders, and by both Parties to this Agreement. Options shall be granted with an exercise price equal to the fair market value as of the date
of grant. The grant date shall not be before the date of employment. 
  
 ARTICLE II 
  
 MANAGEMENT OF JOINT VENTURE
CORPORATION 
  
 Section 2.1 Board of Directors.

  
 (i) Number of Directors; Appointment.
The Board will have six (6) members, three (3) of whom will be nominated by SFDC (so long as SFDC owns at least 30% of the outstanding voting shares), two (2) of whom will be nominated by SB (so long as SB owns at 
  

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least 10% of the outstanding voting shares) and one (1) of whom shall be nominated jointly by SFDC and SB, who shall be the representative director (the
“Representative Director”). The Parties agree to vote their shares, and to cause the directors nominated by them to vote, in favor of the persons so nominated. SB and SFDC have agreed to nominate Akira Kitamura to be the initial
Representative Director. Subject to the unanimous consent provision below, Board majority is required to approve future appointments to the then existing Board. 
  
 (ii) Powers of the Board of Directors. Except as described in Section 2.1(iii) and Section
2.1(iv) below, the directors shall have all the authority granted to the directors in the Articles of Incorporation of the Company and, to the extent not expressly provided therein, the Commercial Code of Japan, as amended and in effect from
time to time. 
  
 (iii) Unanimous
Consents. Notwithstanding the foregoing, the following actions of the Board will require the unanimous consent of the Board: 
  

	 	(i)	any amendment to the Company’s Articles of Incorporation; 

  

	 	(ii)	any further borrowing by the Company in excess of the amounts approved in the annual business plan; 

  

	 	(iii)	any entering into by the Company of any exclusive distributorship, license, service or procurement agreements the subject matter of which is in excess of Ten Million Yen
(¥10,000,000) in a single transaction or series of related transactions; 

  

	 	(iv)	any issuance of new shares of the Company in return for additional paid-in capital; 

  

	 	(v)	any issuance of new shares or warrants of the Company in order to implement any approved employee stock ownership program or stock option plan; 

  

	 	(vi)	any recommendation for the declaration and payment of dividends; 

  

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	 	(vii)	any provision of any guarantees of third party debt in excess of Five Million Yen (¥5,000,000) in a single transaction or series of related transactions;

  

	 	(viii)	any investment by the Company in another company or business outside the ordinary course of business; 

  

	 	(ix)	any, conclusion of any material agreements between the Company and any of the Parties or any Affiliates (defined below) thereof, including any amendments or extensions to the
License Agreement and the Consulting Agreement (as defined in Article IV); 

  

	 	(x)	any sale, lease, exchange, mortgage, pledge or other disposal of any of the Company’s business or assets outside the ordinary course of business and in excess of Ten Million
Yen (¥10,000,000) in a single transaction or series of related transactions; and 

  

	 	(xi)	any change in the number or method of selecting the Board. 

  
 (iv) Vacancy. In the event that a seat on the Board becomes vacant, the Party entitled to nominate the director previously holding
such seat shall have the right to nominate the person to fill such vacancy immediately; provided that such Party continues to be eligible to nominate such director pursuant to Section 2.l(i). Notwithstanding the foregoing, if the seat to be
filled is that of the Representative Director, SB shall have the right to nominate the person to fill such vacancy, subject to the approval of SFDC, which approval shall not be unreasonably withheld. The Parties agree to vote their shares in favor
of the person(s) so nominated. 
  
 (v)
Removal. In the event that a Party wishes to remove a director who was nominated by that Party, the Parties shall vote their shares in favor of such removal. In no case shall any Party vote its shares in favor of the removal of a director
nominated by another Party unless that Party shall have so requested, or such Party is no longer eligible to nominate such director pursuant to Section 2.1(i). In the event that SFDC or SB desires to remove the Representative Director, the
Parties agree to vote their shares in favor of such removal. 
  

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 (vi) Appointment and Removal Notices. The appointment and removal rights pursuant
to this Section 2.1 shall be exercised by written notice to the other Parties and the Company, sent by registered mail with a notice period of thirty (30) calendar days before the shareholders’ meeting or Board meeting, as the
case may be, in which such appointment or removal is to be resolved. The Company shall be timely notified to ensure that the agenda can be set accordingly. 
  
 (vii) Term. The appointment of a director shall be for two-year (2-year) periods. Directors may be re-elected. If a director
resigns or is removed from the Board prior to the expiration of the term and should an election take place to replace such director, the term of the newly elected director shall coincide with the remainder of the term of the director who has
prematurely resigned or been removed. 
  
 (viii)
Compensation of Directors. Except as otherwise set forth in this Section 2.1(viii), all directors shall serve without compensation, but shall be reimbursed by the Company for reasonable out-of-pocket travel, lodging, food and incidental
expenses incurred in connection with their attendance at the Company’s Board meetings and their other duties performed on behalf of the Company. Directors who are also employees of the Company, and the Representative Director, may be paid such
compensation, for their services as employees or Representative Director, as the Board may from time to time approve. 
  
 (ix) Quorum and Voting. The attendance of at least five (5) of the directors shall be necessary to constitute a quorum for a
meeting of the Board. A director may attend the meeting of the Board by videoconference. At meetings of the Board, each director shall have one (1) vote with respect to each matter upon which action is to be taken. Except as otherwise set forth
herein or in the Articles of Incorporation, the act of a majority of the votes cast by directors present at a meeting at which a quorum is present shall be an act of the Board. 
  
 (x) Calling of Meetings. The Board meetings shall be convened by the Representative Director, or,
failing him, by any two (2) other members of the Board or as otherwise provided by law. Notice of the meeting shall be sent to the address for the directors and statutory auditors last made known. Unless unanimously waived, the minimum advance
notice shall be thirty (30) calendar days. A meeting may be called by registered letter telegram, telefax, or via electronic means. 
  

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 (xi) Minutes. Minutes of the Board shall be taken, in which at least the agenda, a
summary of the discussions and procedures taken, the members present and the result of any voting shall be reflected. Such minutes shall be signed by the chair of the meeting of the Board and the directors and statutory auditors present at the
meeting and shall be made available to the Parties without undue delay. 
  
 (xii) Election of the Board. The election of the Board members pursuant to Section 2.1 herein shall occur at such time specified in Section 3.3. 
  
 Section 2.2 Authority of the Representative Director. 
  
 (i) The Company shall have one (1) Representative Director
(daihyotorishimari yaku) who shall also be the President and Chief Executive Officer of the Company. 
  
 (ii) The Representative Director shall have all of the authority of a representative director provided in the Articles of Incorporation
and the Japanese Commercial Code, except as expressly stated otherwise herein. The Representative Director shall be responsible for (i) the implementation of the Annual Plan; and (ii) the efficient management of the Company in accordance with good
business practice in a manner consistent with the then current Annual Plan agreed to by the Parties. 
  
 ARTICLE III 
  
 PROPOSED SCHEDULE 
  
 Section 3.1 Closing.
Within 15 days following the execution of this Agreement, SFDC shall subscribe for, and the Company shall issue 300,000 shares pursuant to Section 1.4 (the “Closing”). Concurrently with the Closing, SFDC shall execute and deliver a
final license agreement with the Company in the form attached hereto as Exhibit A (the “License Agreement”) and SFDC shall execute and deliver a final consulting services agreement with the Company in the form attached hereto as Exhibit B
(the “Consulting Services Agreement”). 
  
 Section 3.2
Election of Board of Directors. Immediately following the Closing, (i) the Company shall cause the election of the Board, as provided in Section 2.1 hereinabove, and (ii) the Board shall hold a meeting to elect the representative
director, officers and statutory auditors of the Company and to transact such other business as may be necessary or proper to be transacted at said meeting. 
  

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 ARTICLE IV 
  

CONTRIBUTIONS BY SFDC 
  
 Section 4.1 License Agreement. At the Closing, SFDC and the Company agree to enter into the License Agreement under which SFDC shall grant to the
Company an exclusive license to use in Japan, SFDC’s proprietary software, the trademark “salesforce.com”, appropriate patents, know-how and such other intellectual property of SFDC (including intellectual property that is subject to
patents), existing as of the date of the License Agreement as are reasonably necessary and relevant to the establishment and operation of the Business in Japan (collectively, the “Intellectual Property”), in accordance with the License
Agreement. 
  
 Section 4.2 “salesforce.com” Name.
The Parties acknowledge that the Company shall have no rights to the use of the name “salesforce.com” or to any goodwill associated therewith save to the extent provided in the License Agreement. Thus, if at any time SFDC and/or its
Affiliates cease to hold any shares in the Company and the License Agreement is terminated, SB and the Company shall ensure that the Company shall cease to use the name salesforce.com for any purpose and shall take such steps as are necessary to
remove such name from the registered corporate name of the Company. 
  
 Section 4.3 Ownership of the Intellectual Property. Pursuant to the License Agreement, SFDC shall own all the Intellectual Property and all derivative works (including localizations) of and improvements to the Intellectual Property
developed by the Company and all other intellectual property developed by the Company with reliance on or reference to the Intellectual Property. Notwithstanding the foregoing, the Company shall own, and shall grant to SFDC a right of first offer to
license for use outside Japan, any software, trademarks, patents, know-how and other intellectual property developed by the Company without reliance on or reference to the Intellectual Property. 
  
 Section 4.4 Access to Personnel. Pursuant to the Consulting Services
Agreement, SFDC shall make certain of its employees available to the Company, on a fee basis, for purposes of consultation or other assistance in the event such consultation or assistance is deemed by the Company to be necessary to carry on the
Business. For the avoidance of doubt, SFDC employees providing such consultation and/or assistance shall at all times remain and be deemed to be employees of SFDC. 
  

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 ARTICLE V 
  

CONTRIBUTIONS BY SB 
  
 Section 5.1 Access to Personnel. SB, as agreed to separately from time to time with the Company, shall make its employees available to the Company
for purposes of consultation or other assistance in the event such consultation or assistance is deemed by the Company to be necessary to carry on the Business. For the avoidance of doubt, such employees shall at all times remain and be deemed to be
employees of SB. 
  
 ARTICLE VI 
  
 SHAREHOLDERS’ MEETINGS 
  
 Section 6.1 When Held; Calling of Meetings. An annual general meeting
of shareholders of the Company shall be held in May of each year. Special general meetings shall be held whenever requested by a majority of the directors of the Board or by any shareholder who has held in the aggregate not less than three percent
(3%) of the total number of issued and outstanding shares of the Common Stock for at least six (6) months prior to the date of the request. 
  
 Section 6.2 Location. Unless otherwise agreed to by all the Parties, all annual or special general meetings of shareholders of the Company shall be
held at the Company’s principal office. 
  
 Section 6.3
Notice. Each shareholder of the Company shall be given notice of the time, date and place of each annual or special general meeting of shareholders at least thirty (30) calendar days prior to the date such meeting is to be held; provided,
however, that except as may otherwise be required by mandatory provisions of applicable law or by the Articles of Incorporation of the Company, the period for such notice may be shortened or dispensed with altogether with respect to any
particular meeting if the written consent of all the shareholders entitled to vote at such meeting is obtained. 
  
 Section 6.4 Agenda and Other Materials. All notices given as aforesaid shall be accompanied by a complete agenda for the meeting, as well as the
texts of resolutions that are proposed to be adopted at such meeting. 
  
 Section 6.5 Quorum. Except as may otherwise be required by mandatory provisions of applicable law or by the Articles of Incorporation of the Company, a quorum at 

  

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all annual or special general meetings of shareholders of the Company shall constitute the presence, in person or by proxy, of each of SFDC and SB, or if
SFDC and SB do not collectively hold a majority of the issued and outstanding shares of the Company, then of shareholders holding a majority of the issued and outstanding shares of the Company. 
  
 ARTICLE VII 
  
 STATUTORY AUDITORS; ACCOUNTANTS; KEY EMPLOYEES 
  
 Section 7.1 Auditors. The Company, after the Closing, shall initially
have one (1) statutory auditor (kansayaku) who shall be elected by the shareholders. 
  
 Section 7.2 Accountants. The Company’s independent certified public accountant shall be nominated from among the leading international accountancy firms jointly by SB and SFDC, and approved by a majority
vote of the outstanding shares of the Common Stock at a Shareholders’ Meeting. 
  
 Section 7.3 Key Employees. The key employees of the Company shall be appointed by the Board, and shall have the functions, duties and scope of authority as set forth in the internal company rules of the
Company, and as assigned to them from time to time by the Board. 
  
 ARTICLE VIII 
  
 COMPANY BUSINESS POLICY

  
 Section 8.1 Arm’s Length Transactions. All of
the Company’s transactions, in particular with companies that are Affiliates (as defined below) of the Parties, must be made at arm’s length. The Company will also solicit and conclude transactions with companies that are not related to
any of the Parties. 
  
 Section 8.2 Affiliates.
“Affiliate” or “Affiliates” means, as to any person, (a) any other person which, directly or indirectly, is in control of, is controlled by, or is under common control with such person, (b) any person who is a
director, officer or partner (i) of such person, (ii) of any subsidiary of such person or (iii) of any person described in the preceding clause (a), or (c) an immediate family member of such person (i.e. parents, siblings, children and their
spouses). For purposes of this definition, “control” of a person means the power, directly or indirectly, either to (i) vote 50% or more of the securities having ordinary 

  

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voting power for the election of directors of such person or (ii) direct or cause the direction of the management and policies of such person whether by
contract or otherwise. 
  
 Section 8.3 Financial
Statements. The Representative Director and President shall provide to the Board and to each of the Parties, quarterly and annual written financial statements for the Company, (including income statements, statements of shareholders equity,
retained earnings and cash flow of the Company and the balance sheets) within thirty (30) calendar days after the end of each quarter and within sixty (60) calendar days after the end of each fiscal year. All financial statements will be prepared in
accordance with the generally accepted accounting principles in the United States. The annual financial statements shall be prepared and audited by an independent accounting firm reasonably acceptable to SFDC and SB. All financial statements shall
be prepared in the English language. The quarterly and annual financial statements and reports will inter alia be integrated into the consolidated reports of the Parties to the authorities (if so required by applicable law), including in the
case of SFDC, the United States Securities and Exchange Commission. 
  
 Section 8.4 Audits. The independent certified public accountants for the Company shall examine and audit the Company’s accounting books and records each year and report its findings to the Board and to the Parties. Such audit
reports and financial statements shall be furnished to the Board and each Party in form and substance consistent with generally accepted accounting principles in Japan and shall be provided (with appropriate reconciliations at the Company’s
expense to generally accepted accounting principles in the United States) within ninety (90) calendar days of the end of each fiscal year of the Company. 
  
 Section 8.5 Fiscal Year. The fiscal year of the Company shall be the one-year period commencing on the first day of March and ending the last day
of February of each calendar year. The first fiscal year of the Company shall be from the date of incorporation of the Company to the last day of February, 2001. 
  
 Section 8.6 Dividends and Distributions. 
  
 (i) The shareholders of the Company may declare an annual dividend and/or one interim dividend per year, by
vote at the annual general meeting or, in the case of an interim dividend, at a special meeting of shareholders, in the amount determined at such meeting. 
  

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 (ii) Dividends on the shares of the Company shall be paid in Japanese Yen. 
  
 Section 8.7 Annual Business Plan. 
  
 (i) The Representative Director shall prepare and submit to
the Board for approval by majority vote an annual business plan (the “Annual Plan”) for the Company, with respect to each fiscal year, no later than sixty (60) calendar days prior to the commencement of such fiscal year. Each Annual Plan
shall set forth in reasonable detail (i) the business operations plan detailing the company’s goals and procedures for personnel, technical, financial, and administrative activities, and (ii) the annual budget for such fiscal year, including,
anticipated revenues, expenses and capital expenditures and the underlying assumptions with respect to such revenues, expenses, capital expenditures, and definition of market and anticipated market growth rates. The Board shall cause the Company to
conduct its operations in accordance with the Annual Plan. All Annual Plans shall be prepared in the English language. 
  
 (ii) Any Party and the Representative Director shall have the right to request revisions to any previously approved Annual Plan if market
conditions have materially changed, or if the growth rate of the market is materially different from the anticipated growth rate of the market. Such request may be made no more than once in a fiscal year. The other Parties agree to negotiate in good
faith revisions to the targets set forth in the Annual Plan for a particular business year and to cause the directors appointed by them to vote to approve such negotiated revisions. 
  
 ARTICLE IX 
  
 TRANSFER AND ENCUMBRANCE OF SHARES 
  
 Section 9.1 Transfer of Shares. Except as otherwise permitted herein, until the third anniversary of the Effective Date, no Party may transfer any
of its shares of the Company except to a wholly-owned subsidiary of such Party; provided that, such wholly-owned subsidiary agrees to become a party hereto and to be bound by the share transfer restrictions set forth herein. 
  
 Section 9.2 Right of First Refusal. 
  
 (i) If after third anniversary of the Effective Date, a
Party (the “Offeror”) wishes to sell, assign, transfer, gift, or otherwise dispose of all or a portion of its shares in the 

  

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Company (hereinafter referred to as the “Transfer Share” or the “Transfer Shares”) or grant any beneficial interest therein
or grant a security interest therein (any such act being a “Transfer”) to a third party, the Company and the other Party (together, the “Offerees”) shall have a right of first refusal to purchase such Transfer Shares on
the same terms and conditions as the proposed third-party transferee in accordance with this Section 9.2. 
  
 (ii) Notice of Transfer. The Offeror shall first send a written notice (the “Notice”) to each Offeree, setting
forth the terms of the proposed Transfer and the time and place of the closing of the proposed transaction, which closing shall occur, or be scheduled to occur, on a date not less than sixty (60) calendar days and not more than one hundred eighty
(180) calendar days after the date on which the Notice is received by the Offeree (the date one hundred eighty (180) calendar days after the date on which the Notice is received by the Offeree being herein referred to as the “Expiration
Date”). 
  
 (iii) Number of Shares;
Lapse of Right. The Company shall have the right to purchase up to all of the Transfer Shares. Each Offeree shall have the right to purchase a number of Transfer Shares included in the Notice equal to the total number of Transfer Shares not
purchased by the Company, if any, or, if one or more other Offerees likewise desire to purchase the Transfer Shares, a fraction of the Transfer Shares not purchased by the Company, if any, based on the ratio of (i) the total number of shares held by
such Offeree to (ii) the total number of all shares held by all Offerees desiring to purchase such Transfer Shares. Each Offeree shall have the right to purchase such Transfer Shares at the price offered to the third party. Each such right shall be
exercisable by notice to the Company and all other Parties within forty-five (45) calendar days after the date of its receipt of the Notice and shall, if not so exercised, thereupon lapse. 
  
 (iv) Transfer of Remaining Transfer Shares. In the
event that the Offerees do not purchase all of the Transfer Shares in accordance with the terms and procedures set forth in this Section 9.2, the Offeror may consummate the Transfer of such remaining Transfer Shares, but only on the terms set
forth in the Notice and on a date on or prior to the Expiration Date. If the Offeror does not consummate the proposed Transfer on or prior to the Expiration Date, the proposed Transfer may not be made with regard to such remaining Transfer Shares
not consummated without a new offer being made to the Offerees, again being subject to the Offeree’s right of first refusal as provided hereinabove. 
  

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 (v) Not a Transfer. Notwithstanding the foregoing, a transfer of all (but not less
than all) of the shares of the Company held by a Party as part of the sale of all or substantially all of the assets of such Party, shall not require the approval of the Board and shall not be subject to the right of first refusal hereunder;
provided that the transferee has agreed to be bound by all of the provisions hereof and, in the case of a transferee of SFDC, the License Agreement and the Consulting Services Agreement. 
  
 Section 9.3 Restrictions on Encumbrance. In addition to the requirements set forth in Section 9.2, shares of
the Common Stock held by any Party may only be pledged, hypothecated or otherwise encumbered with the unanimous approval of the Board. 
  
 Section 9.4 Third Parties. As a condition precedent to the validity and effectiveness of any such Transfer of the Transfer Shares to any person or
entity not already a party to this Agreement, each such transferee and/or pledgee shall have entered into an agreement with the Offeror, the Offerees and the Company identical in all material respects to this Agreement so as to preserve the rights
of the shareholders of the Company provided herein. 
  
 ARTICLE
X 
  
 COMPETITION CLAUSE 
  
 Section 10.1 Non-Competition. SFDC and SB shall not, except through
the Company during the term of this Agreement, directly or indirectly own or acquire any substantial or controlling financial or beneficial interest in any person or entity, including but not limited to, any corporation, partnership, trust,
unincorporated association, joint venture or other strategic business relationship (herein collectively referred to as “Other Person or Entity”), or not to be employed or retained (as a consultant, contractor or in any other capacity) by
any Other Person or Entity, or not to manage, operate, franchise, control or participate in the ownership, management, operation or control of any Other Person or Entity, which directly competes with the Business in Japan; provided that, nothing
herein shall prevent either party from maintaining an interest or investment in or, after the initial investment has been made by a party, participating in any follow-on equity based offering by, any Other Person or Entity which at the time the
initial investment was made did not directly compete with the Business in Japan, but which subsequently, through no encouragement on the part of the investing party, has begun to directly compete with the Business in Japan. 
  

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 Section 10.2 Validity. The parties agree that (a) if any provision of this Article X is
held to be invalid or unenforceable in any jurisdiction, (i) the remaining provisions shall continue to be valid and enforceable as though the invalid or unenforceable part had not been included, and shall be liberally construed in favor of the
injured Party in order to carry out the intentions of the Parties hereto as nearly as may be possible and (ii) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such
provision in any other jurisdiction; and (b) if any geographical area or term or period of this Article X is held to be invalid or unenforceable, such geographical area or term or period shall be construed to be valid and enforceable over the
maximum reasonable geographical area, term or period of time. 
  
 Section 10.3 Injunctive Relief. The Parties acknowledge and agree that in the event of a breach or threatened breach of any of the provisions of this Article X, the non-breaching Party’s remedies at law would be
inadequate, and that the damages flowing from such breach would not be readily susceptible of being measured in monetary terms. Accordingly, upon either Party’s breach or threatened breach of any of such provisions, the non-breaching Party
shall be entitled to provisional disposition or other immediate injunctive relief and may obtain a temporary order restraining any threatened or further breach. 
  

Section 10.4 Effect on Affiliates. The Parties agree to cause each of their respective Affiliates to comply with the foregoing provisions
mutatis mutandis as if such Affiliate were a party hereto and each Party agrees to indemnify the other Party against any loss, cost, expense or liability (including without limitation, reasonable attorneys’ fees and
expenses) resulting from any failure to cause such Affiliate to so comply. 
  
 Section 10.5 Solicitation of Employees. During the term of this Agreement, none of the Parties shall solicit or employ any employees of the Company without the prior written consent of the Company. 

 
 ARTICLE XI 
  
 RIGHT OF INSPECTION 
  
 All Parties shall, in accordance with applicable law, have the right to
inspect upon reasonable notice and during normal business hours through their authorized representatives the Company’s general books and records and to obtain photocopies of such books and records. In addition, upon reasonable prior notice to
the Company, and at said Party’s 

  

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expense, but not more than once in each fiscal year, each Party shall be entitled to conduct its own audit (with its employees or agents) of the accounts,
books and records and business activities of the Company at the time and place and in a manner as is reasonably agreed to by the Company. Any information obtained by the Parties through exercise of rights granted under this Article XI shall,
to the extent constituting Confidential Information hereunder, be subject to the confidentiality provisions set forth in Article XIV. 
  
 ARTICLE XII 
  
 TERM; DEFAULT 
  
 Section 12.1 Term. This Agreement shall commence upon the execution of this Agreement by all the Parties and shall remain in effect until the earlier of: (i) such time as all of the outstanding shares of the
Company are owned by one of the Parties; (ii) the dissolution and liquidation of the Company except for the necessary time period to wind up the affairs of the Company; (iii) such time as the shares of the Company are publicly listed and traded on a
national or regional securities exchange or over the counter market in Japan or elsewhere; (iv) such time as the Company is sold to a third party; or (v) such other time as may be agreed upon by the Parties. 
  
 Section 12.2 Default. In addition, unless waived, either SB or SFDC,
as the case may be, may terminate this Agreement by exercise of the corresponding default provisions as provided for in Sections 12.3, 12.4 and 12.5, hereof by written notice to the defaulting party. 
  
 Section 12.3 SFDC Default. 
  
 (a) The following shall constitute an “SFDC
Default,” which shall permit SB to terminate this Agreement or to exercise the Default Put Option pursuant to Section 13.2(a): 
  

	 	(i)	A breach or default by SFDC of any of its material obligations under this Agreement, the License Agreement or the Consulting Services Agreement; provided, however, that if SFDC
shall, in good faith, take action to cure such default or breach and shall diligently prosecute such cure, then no SFDC Default will be deemed to have occurred as long as such cure is fully completed within sixty (60) calendar days of notice of the
breach or default; or 

  

 16 

	 	(ii)	The commencement of a petition, proceeding or case seeking SFDC’s bankruptcy, insolvency, reorganization, liquidation, dissolution or winding-up, or readjustment of its debts,
or seeking the appointment of a receiver, trustee or the like of itself or its assets, or otherwise seeking relief from its creditors and, in the case of an involuntary petition, proceeding or case, such petition, proceeding or case continues
undismissed for, or an order approving or ordering any of the foregoing is entered and is not stayed within, sixty (60) calendar days; or 

  

	 	(iii)	A governmental or court order, decree, judgment, action or agreement to sell or transfer all or any part of its assets, the result of which would effectively prevent SFDC from
performing its obligations under this Agreement, the License Agreement or the Consulting Services Agreement. 

  
 (b) If SB waives its right to exercise its Default Put Option pursuant to Section 13.2(a) then SB may elect to pursue damages
against SFDC for the SFDC Default. SB’s waiver of its right to exercise its Default Put Option pursuant to Section 13.2(a) shall in no way result in the automatic termination of this Agreement unless SB shall have exercised its right to
terminate this Agreement. 
  
 Section 12.4 SB Default.

  
 (a) The following shall constitute a “SB
Default” with respect to SB, which shall permit SFDC to terminate this Agreement or to exercise the Default Call Option pursuant to Section 13.2(b): 
  

	 	(i)	A breach or default by SB of any of its material obligations under this Agreement; provided, however, that if SB shall in good faith take action to cure such default or breach and
shall diligently prosecute such cure, then no SB Default will be deemed to have occurred as long as such cure is fully completed within sixty (60) calendar days of notice of the breach or default; or 

  

	 	(ii)	 The commencement of a petition, proceeding or case seeking SB’s bankruptcy, insolvency, reorganization, liquidation, dissolution or 

  

 17 

	 	 
winding-up, or readjustment of its debts, or seeking the appointment of a receiver, trustee or the like of itself or its assets, or otherwise seeking relief
from its creditors and, in the case of an involuntary petition, proceeding or case, such petition, proceeding or case continues undismissed for, or an order approving or ordering any of the foregoing is entered and is not stayed within, sixty (60)
calendar days; or 

  

	 	(iii)	A governmental or court order, decree, judgment, action or agreement to sell or transfer all or any part of its assets, the result of which would effectively prevent SB from
performing its obligations under this Agreement. 

  
 (b) If SFDC waives its right to exercise its Default Put Option pursuant to Section 13.2(b) then SFDC may elect to pursue damages against SB for the SB Default. SFDC’s waiver of its right to
exercise its Default Put Option pursuant to Section 13.2(b) shall in no way result in the automatic termination of this Agreement unless SFDC shall have exercised its right to terminate the Agreement. 
  
 Section 12.5. Company Default. 
  
 (a) The following shall constitute a “Company
Default” with respect to the Company which shall permit either SFDC or SB to exercise the Company Default Option pursuant to Section 13.2(c): 
  

	 	(i)	A breach or default by the Company of any of its material obligations under this Agreement; provided, however, that if the Company shall in good faith take action to cure such
default or breach and shall diligently prosecute such cure, then no Company Default will be deemed to have occurred as long as such cure is fully completed within sixty (60) calendar days of notice of the breach or default; or

  

	 	(ii)	The termination of the License Agreement or the Consulting Services Agreement by SFDC as a result of a breach, default by the Company thereunder; or 

  

	 	(iii)	The commencement of a petition, proceeding or case seeking the Company’s bankruptcy, insolvency, reorganization, liquidation, 

  

 18 

	 	 
dissolution or winding-up, or readjustment of its debts, or seeking the appointment of a receiver, trustee or the like of itself or its assets, or otherwise
seeking relief from its creditors and, in the case of an involuntary petition, proceeding or case, such petition, proceeding or case continues undismissed for, or an order approving or ordering any of the foregoing is entered and is not stayed
within, sixty (60) calendar days; or 

  

	 	(iv)	A governmental or court order, decree, judgment, action or agreement to sell or transfer all or any part of its assets, the result of which would effectively prevent the Company
from performing its obligations under this Agreement, the License Agreement or the Consulting Services Agreement. 

  
 (b) SFDC’s or SB’s waiver of its right to exercise its Company Default Option pursuant to Section 13.2(c) shall in no way
lead to the automatic termination of this Agreement nor the automatic liquidation of the Company, unless agreed upon by all the Parties. 
  
 ARTICLE XIII 
  
 OPTIONS 
  
 Section 13.1 Put Option. In the case of a Deadlock as defined in Section 13.4, SB shall have the right to exercise a put option to force SFDC to purchase all of its shares of the Company (the “Put Option”). The price
that SFDC shall pay for any such shares shall be the Fair Market value as defined in Section 13.5. 
  
 Section 13.2 Default Put Option. 
  
 (a) SFDC Default. In the event of any SFDC Default, SB shall have a separate irrevocable put option, exercisable upon notice, to
require SFDC to purchase from SB, as the case may be, all (but not less than all) of its shares of the Common Stock (the “SFDC Default Put Option”). The price that SFDC shall pay for such shares subject to the SFDC Default Put Option shall
be the Fair Market value as defined in Section 13.5 plus an additional Fifteen Percent (15%) premium. 
  

 19 

 (b) SB Default. In the event of any SB Default, SFDC shall have a separate
irrevocable call option, exercisable upon notice, to require SB to sell to SFDC all (but not less than all) of its shares of the Common Stock (the “SB Default Put Option”). The price that SFDC shall pay for such shares subject to the SB
Default Put Option shall be the Fair Market value as defined in Section 13.5 less a Fifteen Percent (15%) discount. 
  
 (c) Company Default. In the event of any Company Default, SFDC shall have an irrevocable call option, and SB shall have an
irrevocable put option, in each case exercisable upon notice, to require SB to sell to SFDC or to require SFDC to purchase from SB, as the case may be, all (but not less than all) of its shares of the Common Stock (the “Company Default
Option”). The price that SFDC shall pay for such shares subject to the Company Default Option shall be the Fair Market value as defined in Section 13.5. 
  
 Section 13.3 Notice of Exercise. The options set forth in this Article XIII, may be exercised by the relevant
Parties by written notice given to the Company and the other Parties: (a) in the case of an SFDC Default, a SB Default or a Company Default, within thirty (30) calendar days of the event resulting in such default; and (b) in the case of a Deadlock,
within thirty (30) calendar days of determining that such Deadlock has occurred. If any such option has not been exercised during such exercise periods, then such option shall lapse; provided however, that the failure to exercise an option with
respect to a SFDC Default, a SB Default, a Company Default, or a Deadlock shall not affect the rights to exercise any options with respect to any subsequent SFDC Default, a SB Default, a Company Default or a Deadlock. 
  
 Section 13.4 Deadlock. A “Deadlock” shall have
occurred, and the parties will have the right to exercise the Deadlock Option when (a) the Board fails at two (2) consecutive regular or special meetings to approve a proposal concerning a matter specified for unanimous approval, and its failure to
act on such matter would be expected to have a material adverse effect on the Company acting in good faith (an “Initial Deadlock”), and (b) if, within sixty (60) calendar days of the occurrence of an Initial Deadlock, the Parties
are unable, through good faith negotiations among their chief executives, to resolve the Initial Deadlock matter. 
  

 20 

 Section 13.5 Fair Market Value. 
  
 (a) The Fair Market value per share of the Common Stock for purposes of determining the prices under
Sections 13.1 and 13.2 above shall be equal to the fair market value of the company as an ongoing concern determined in accordance with this Section 13.5 divided by the number of shares outstanding. 
  
 (b) The Parties to the transaction at issue shall attempt in
good faith to agree upon a fair market value. If within thirty (30) calendar days of the notice referred to in Section 13.3 above, the Parties to the transaction at issue have not agreed on such fair market value, the fair market value shall be
determined by an independent appraiser who shall be a certified public accountant associated with a national accounting firm and who has been appointed on the mutual agreement of all the Parties to the transaction at issue. The cost for the
independent appraiser shall be borne by the Parties to the transaction equally. 
  
 (c) If the Parties to the transaction cannot agree on the selection of an independent appraiser within 30 calendar days, each shall select
its own appraiser (each a “Party Appraiser”) and the Party Appraisers shall select a third appraiser, who shall determine the Fair Market value. The decision by the third appraiser shall be in writing and binding upon the respective
Parties. The costs for the Party Appraisers shall be borne by the Party selecting such Party Appraiser, and the costs for the third appraiser shall be borne by the Parties to the transaction equally. 
  
 ARTICLE XIV 
  
 CONFIDENTIALITY 
  
 Section 14.1 Confidential Information. The Company and each Party
hereby agree (i) to hold and to cause each of such party’s agents, employees and representatives to hold each other’s Confidential Information in strict confidence and to take reasonable precautions to protect such Confidential Information
including, without limitation, all precautions the receiving party employs with respect to its own confidential materials, (ii) not to divulge any such Confidential Information or any information derived therefrom (including, without limitation, by
way of interviews, responses to questions or inquiries, press releases or otherwise) to any third person; (iii) not to make any use whatsoever at any time of such Confidential Information except as contemplated hereunder, and, (iv) not to copy or
reverse engineer any such Confidential Information. For purposes of this Article XIV, “Confidential Information” shall mean, without limitation: 
  
 (i) any information that is specifically marked as “Confidential”; 
  

 21 

 (ii) information which the management of the Company or any of the Parties has requested
in writing to be kept confidential; 
  
 (iii)
information which is disclosed verbally and identified as confidential at the time of disclosure; 
  
 (iv) information which, by its nature, must be kept confidential in order to prevent adverse consequences to the Business, the Company,
the Parties or their Affiliates; 
  
 (v)
information relating to the contents of the Memorandum of Understanding, this Agreement and its Exhibits and all other agreements contemplated herewith. 
  
 Section 14.2 Exceptions to Confidentiality Obligations. “Confidential Information” shall not include information that: 
  
 (i) was already known to the receiving Party prior to
disclosure by the disclosing Party; 
  
 (ii) is
in or has entered the public domain through no breach of this Agreement or other wrongful act of the receiving party; 
  
 (iii) has been rightfully received by the receiving party from a third party and without breach of any obligation of confidentiality of
such third party to the owner of the Confidential Information; 
  
 (iv) has been approved for release by written authorization of the owner of the Confidential Information; or, 
  
 (v) has been independently developed by the receiving party. 
  
 Notwithstanding any provision in this Agreement to the contrary, a Party may disclose Confidential Information of another
Party to the extent it is required to be disclosed pursuant to a valid order or requirement of a governmental agency or court of competent jurisdiction, provided that the owner of the Confidential Information shall be given reasonable notice of such
an order or requirement and the opportunity to contest it. 
  

 22 

 Section 14.3 Limitation on the Flow of Information. The Company and the Parties shall endeavor to
give access to the Confidential Information only to such persons who are either bound by a professional duty of confidentiality or who require knowledge of the information as employees, representatives, authorized persons, advisors, officers or
directors of the Company or the respective Party or one of its Affiliates for orderly conduct of business of the Company or the Party concerned. The Company or Party shall also require the recipients of the information to undertake to keep the
confidential information secret. 
  
 Section 14.4 Duration of
Obligation. The Company’s obligations under this Article XIV shall continue to be in full force throughout the term of this Agreement and shall survive for five (5) years after any termination or expiration of this Agreement. The
obligations of this Article XIV shall continue to be in full force with respect to a Party even after such Party shall have ceased to be a Party to this Agreement or a shareholder of securities of the Company and shall survive for five (5)
years after the earlier of (i) any termination or expiration of this Agreement or (ii) the time such Party shall have ceased to be a Party to this Agreement or a shareholder of securities of the Company. 
  
 ARTICLE XV 
  
 COSTS AND EXPENSES 
  
 Section 15.1 Costs. All costs resulting from negotiating, preparing,
executing and delivering this Agreement, including, but not limited to, legal, accountancy and financial advisors’ fees, shall be borne by such Party incurring such costs and shall not be reimbursable by the other Parties or the Company.

  
 Section 15.2 Incorporation Costs. Subject to Section
15.3 below, all costs incurred in the establishment of the Company, including legal, accounting and judicial scrivener fees and registration taxes, to the extent not chargeable to the Company, shall be borne on a pro-rata basis by the Parties.

  
 Section 15.3 Access to Personnel. In the event the
Company consults with or otherwise obtains assistance from the employees of one of the Parties pursuant to
Sections 4.4 or 5.1 above, subject to the approval of the Board, the Company shall reimburse such Party, upon its request, for all reasonable costs and expenses incurred in connection with furnishing its employees and their services to the
Company. Any conflict between this Section 15.3 and the terms of the Consulting Services Agreement shall be resolved in favor of 

  

 23 

 
the terms of the Consulting Services Agreement, but this Section 15.3 shall survive termination or expiration of the Consulting Services Agreement.

  
 ARTICLE XVI 
  
 MISCELLANEOUS PROVISIONS 
  
 Section 16.1 Entire Agreement. This Agreement and the documents
referred to in this Agreement contain the entire agreement between the Parties and the Company relating to the transactions contemplated by this Agreement and supersede any previous agreements between the Parties (if any) relating to these
transactions. 
  
 Section 16.2 Effects on Third Parties.
This Agreement shall be binding upon the Company and each of the Parties and their respective successors and permitted assignees. The validity of this Agreement shall also be applicable to all shares acquired in the future by way of purchase or in
any other manner by the Parties. 
  
 Section 16.3
Interpretation. The headings in this Agreement are for ease of reference only and do not affect the substance of any provision. Words denoting the singular include the plural and vice versa, words denoting any one gender include all genders.
All references to a statutory provision shall be construed as including references to any statutory modification or re-enactment thereof (whether before or after the date of this Agreement) for the time being in force. 
  
 Section 16.4 Modifications to Agreement. No provisions of this
Agreement (including, without limitation, the Exhibits attached hereto) may be amended or modified, in whole or in part, otherwise than by an instrument in writing signed by all the Parties or their successors or permitted assignees. 
  
 Section 16.5 No Third Party Beneficiaries. Except as otherwise
expressly stated in this Agreement, none of the rights, interests and obligations under this Agreement may be assigned or otherwise transferred to any third party without the prior written consent of the other Parties. This Agreement shall inure to
the benefit of, and be binding upon, each of the Parties and their respective successors and permitted assignees, subject to the provisions of this Agreement, but shall not inure to the benefit of any third party. 
  
 Section 16.6 Severability and Invalidity. In the event that any
provisions of this Agreement be found to be, in whole or in part, invalid or unenforceable by a court of 

  

 24 

 
competent jurisdiction, the validity or enforceability of the remaining provisions under applicable law will not be affected thereby and shall remain binding
upon the Parties hereto. Any such invalid or unenforceable provisions shall be substituted by a valid or enforceable provision which, in its essential purpose, comes as close as possible to the invalid or unenforceable provision; the same applies
mutatis mutandis to any gaps in this Agreement. 
  
 Section
16.7 Waivers. The failure of any Party to enforce or to exercise, at any time or for any period of time, any right or remedy arising pursuant to or under this Agreement does not constitute, and shall not be construed as, a waiver of such
right or remedy and shall in no way affect that Party’s right to enforce or exercise it at a later time, provided that such right or remedy is not time-barred or otherwise precluded by law or by a writing expressly waiving such right or remedy
and signed by that Party seeking to assert such right or remedy. 
  
 Section 16.8 Exhibits. All exhibits to this Agreement are an integral part of this Agreement as if fully set forth herein. All references herein to an exhibit shall be deemed to be references to an exhibit of this Agreement unless
the context shall otherwise require. 
  
 Section 16.9
Notices. All notices, requests, demands, consents, approvals, documents, reports or returns required or permitted by this Agreement shall be in writing and shall be deemed to have been given to the recipient when (i) delivered by hand, (ii)
sent by facsimile (with receipt confirmed by a machine-generated transmission record), provided that a copy is concurrently mailed by registered or certified mail, postage prepaid, return receipt requested, or (iii) when received by the addressee,
if sent by courier service (return receipt requested), in each case to the appropriate addresses set forth below (or to such addresses and/or facsimile numbers as a Party may designate as to itself by written notice to the other Parties hereto).

  
 Section 16.10 Counterparts. This Agreement may be
executed in one or more counterparts, each of which shall be deemed to be a duplicate original, but all of which taken together shall constitute one and the same agreement. 
  
 Section 16.11 Language. This Agreement has been produced in the English language and the negotiations relating to
this Agreement were conducted in English; any translations are for working purposes only and have no influence on the interpretation of this Agreement. 
  

 25 

 Section 16.12 Announcements. Except as otherwise expressly permitted herein or required by
applicable law, all press releases and other public announcements by any of the Parties concerning this Agreement or its subject matter or any matter ancillary hereto must be approved in writing by each Party, such approval not to be unreasonably
withheld or delayed, prior to their release or publication. 
  
 Section 16.13 Governing Law. The validity, interpretation, and performance of this Agreement shall be governed by and construed in accordance with the laws of Japan. 
  
 Section 16.14 Conflicts. In the event of a discrepancy or inconsistency between this Agreement and the Articles of
Incorporation of the Company, the provisions of this Agreement shall control to the extent permitted by law. 
  
 ARTICLE XVII 
  
 DISPUTE RESOLUTION 
  
 Section 17.1
Disputes. The Parties agree that any dispute, controversy, question or claim concerning, arising out of, or relating to the performance, interpretation or construction of this Agreement (“Dispute”) shall be resolved pursuant
to this Article XVII. Without in any way limiting the right of a Party to seek injunctive relief pursuant to Section 17.6 hereof, if at any time a Dispute arises, at the request of any Party, the Parties shall meet, within twenty (20)
calendar days of written notice that there is a Dispute, in San Francisco, California, or confer by telephone in an effort to discuss in good faith and to reach an amicable resolution to such Dispute. The Parties shall use all reasonable efforts to
resolve any Dispute through direct discussions. If the Parties are unable to settle on a resolution agreeable to all the Parties within sixty (60) calendar days following the written notice of Dispute, the Parties shall undertake to resolve the
Dispute pursuant to Section 17.2 below. 
  
 Section 17.2
Arbitration. If the Parties are unable to resolve a Dispute pursuant to Section 17.1 above, the Dispute shall be settled, at the request of any Party, by arbitration conducted in accordance with the Commercial Arbitration Rules (or
then existing rules for commercial arbitration) of the American Arbitration Association in San Francisco, California, in the event that the request is made by SB, or in Tokyo, Japan, in the event that the request is made by SFDC. The arbitration of
such issues, including the determination of any amount of damages to be awarded, shall be final and binding upon the parties, except that the arbitrator shall not be authorized to award punitive damages with respect to any such Dispute. No 

  

 26 

 
party shall seek punitive damages relating to any matter under or arising out of this Agreement in any other forum. Any arbitrator may be of any nationality.
The language of the arbitration shall be English. 
  
 Section 17.3
Confidentiality of Proceedings. The dispute resolution proceedings contemplated by this provision shall be as confidential and private as permitted by law. To that end, the parties shall not disclose the existence, content or results of any
proceedings conducted in accordance with this provision, and materials prepared or submitted in connection with such proceedings shall not be admissible in any other proceeding, provided, however, that this confidentiality provision shall not
prevent a petition to vacate or enforce an arbitral award, and shall not bar disclosures required by law. 
  
 Section 17.4 Arbitral Tribunal. All arbitral awards shall be rendered in writing and shall state the reasons for the award. Any arbitral tribunal
established hereunder shall make such decisions entirely on the basis of the substantive law specified in Section 16.13 hereof and shall not make an award on the basis of the principle of ex aequo et bono
(in justice and fairness) or otherwise. The arbitral tribunal shall not be empowered to award any form of punitive damages or any other remedy not measured by the prevailing party’s actual damages or to act as amiable compositeur. The
arbitration award may award reasonable attorneys’ fees to the prevailing party. 
  
 Section 17.5 Injunctive Relief. The Parties agree that, in addition to any and all other remedies that may be available under this Agreement and its Exhibits, each Party shall be entitled for the enforcement of
its claims to injunctive relief as may be granted by a court of competent jurisdiction. 
  
 Section 17.6 Cost. Each party shall bear its own cost of the arbitration; provided, that the costs of the arbitrators shall be borne and paid equally by all parties hereto. 
  
 Section 17.7 Effect of Decision. The parties intend that this
agreement to arbitrate in accordance with this Article XVII be valid, binding, enforceable and irrevocable. Subject to any applicable law, the decision of any arbitration made pursuant to this Article XVII shall be final and binding on
the Parties and shall be specifically enforceable in any court having jurisdiction over the Parties hereto. The Parties agree that any decision or award resulting from proceedings in accordance with this Article XVII shall have no preclusive
effect in any other matter involving third parties. 
  

 27 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized
officers as of the date first hereinabove written. 
  

	salesforce.com
		
	By	 	 /s/ Andrew P. Hyde

	 	

	 Name:
	 	 Andrew P. Hyde

	 Title:
	 	 Senior Vice President,
 Chief Financial
Officer

  

	 SunBridge, Inc.

		
	By	 	 /s/ Allen Miner

	 	

	 Name:
	 	 Allen Miner

	 Title:
	 	 President and Chief Executive Officer

  
 Joining the Agreement
and signing solely with respect to those provisions hereof which shall bind the Company: 
  

	
	Kabushiki Kaisha salesforce.com
		
	By	 	 /s/ Akira Kitamura

	 	

	 Name:
	 	 Akira Kitamura

	 Title:
	 	 President and Chief Executive Officer

  

 28License Agreement

 EXHIBIT 10.13 
  
 LICENSE AGREEMENT 
  
 This License Agreement (“Agreement”) is entered into as of January 19, 2001 (“Effective Date”) by and between salesforce.com, Inc., a Delaware corporation (“SFDC”) and salesforce.com Japan, Ltd., a
Japanese corporation (“Licensee”). SFDC and Licensee are hereinafter collectively referred to as the “Parties” and individually as a “Party.” 
  
 RECITALS 
  
 WHEREAS, SFDC provides Internet-based customer relationship management application services using proprietary
software and technology; 
  
 WHEREAS, pursuant to a Joint
Venture Agreement dated as of December 7,2000 (the “JV Agreement”) between SFDC and Sunbridge, Inc., a Japanese corporation (“SB”), SFDC and SB established Licensee for the purpose of providing, in Japan,
internet-based customer relationship management application services; 
  
 WHEREAS, Licensee desires to obtain a license to use certain of SFDC’s trademarks, software and technology in Japan and SFDC desires to grant such a license on the terms and conditions set forth herein; 
  
 WHEREAS, Licensee desires to obtain, and SFDC desires to perform
certain development, support and other services in connection with establishing and operating Licensee’s application services; and 
  
 WHEREAS, until such time as Licensee establishes a data center in Japan to host its application services, SFDC desires to host the application
services for Licensee. 
  
 NOW, THEREFORE, in consideration
of the obligations, representations, warranties and covenants herein, the Parties agree as follows: 
  
 AGREEMENT 
  
 1.
Definitions. As used in this Agreement, the following capitalized terms shall have the meanings set forth below: 
  
 1.1. “Business” means the development, operation, administration, distribution, provision, support, maintenance and marketing of
application services to Customers similar to the services provided by SFDC in the United States as of the Effective Date and during the term of this Agreement, including all activities incidental thereto. 
  
 1.2. “Client Programs” means, to the extent the Localized
Software is based on a client/server architecture, any portion of the Localized Software that is designed to be installed and used on a client computer at the Customer site. 
  
 1.3. “Confidential Information” shall have the meaning set forth in Section 10. 
  
 1.4. “Consulting Services Agreement” means the Consulting
Services Agreement between the Parties of even date hereto. 
  
 1.5. “Customer” means (a) any individual or legal entity having a valid residential or business mailing address in the Territory, including, in the case of entities, the entity’s extra-Territorial offices, employees
and agents, and (b) any individual or legal entity conducting business in Japan or marketing its goods and services targeted primarily at the Japanese-language market in the Territory. 
  
 1.6. “Customer Data” means any data and information relating to Customers and their use of the Japan
Service and Localized Products, whether collected by or for Licensee or SFDC. “Customer Data” does not include data which Customers enter into the Localized Products for their own business usage. 
  
 1.7. “Distributors” means any commercial entities, including
without limitation dealers, distributors, resellers, and VARs, that are appointed by Licensee in accordance Section 3.3 
  
 1.8. “Documentation” means the standard documentation for the Software, including without limitation user, reference, technical (e.g.,
systems operation) and training manuals, and any training materials provided to Licensee by SFDC in connection with any training conducted pursuant to this Agreement or the Consulting Services Agreement. 
  
 1.9. “Domain Names” shall mean the domain names
“salesforce.co.jp” and “salesforce.ne.jp”, which have been or may be registered by Licensee in Japan. 
  

 1 

 1.10. “Initial Phase” shall have the meaning set forth in Section 2.9. 
  
 1.11. “Intellectual Property Rights” means any and all
intellectual property rights, including, without limitation, (i) all rights, title and interest in all patents and patent applications, including any reissue, divisional, continuation-in-part and substitution patents and/or applications throughout
the world; (ii) all rights, title and interest in all trade secrets, and all trade secret rights, and all equivalent rights, under common law, state law, federal law and the law of any country or political subdivision thereof; (iii) all rights,
title and interest in all copyrights and copyrighted or copyrightable subject matter, copyright rights and other literary property or author’s rights, whether or not protectable by copyright; (iv) all rights, title and interest in any and all
know-how, whether or not patentable, copyrightable, or protectable as trade secrets and (v) all rights, title and interest in any and all trademarks, service marks, trade names, logos and slogans, throughout the world, whether or not applied for or
registered. 
  
 1.12. “Japan Service” means a
service targeted at Customers by which Localizations (whether partial or complete) of the SFDC Service are made available through the Localized Web Site. 
  
 1.13. “Licensee Web Site” means a Web Site controlled by Licensee and operated by or for Licensee under the domain name
“salesforce.co.jp”, or the successor or substitute Web Site therefor, or, during the Initial Phase, at http://www.salesforce.com/jp. 
  
 1.14. “Localize” means to translate into Japanese and adapt and/or modify (including without limitation addition and deletion) for use in
the Japanese market such that, for example, text, visual displays, printouts, and other elements have been translated into Japanese and formatted for use in Japan and the currency, content, look and feel and/or functional variations (e.g.,
multi-byte enablement) required for or appropriate to the Japanese market have been incorporated, and “Localization” means the results (e.g., the translated and/or modified version of the Software, Documentation or SFDC’s
Trademarks) of such translation, adaptation and/or modification. 
  
 1.15. “Localized Documentation” means the Documentation that has been Localized pursuant to this Agreement. 
  
 1.16. “Localized Products” means collectively the Localized Documentation, Localized Sales Materials, Localized Software and Localized
Web Site. 
  
 1.17. “Localized Sales Materials”
means the Localizations of the Sales Materials that have been Localized pursuant to this Agreement. 
  
 1.18. “Localized Software” means the Localizations of the Software that has been Localized pursuant to this Agreement. 
  
 1.19. “Localized Web Site” means the Localizations of the
SFDC Web Site that has been Localized pursuant to this Agreement. 
  
 1.20. “Multinational Company” means any legal entity having a substantial presence both inside and outside the Territory. 
  
 1.21. “Products” means collectively the Documentation, Sales Materials, Software and SFDC Web Site. 
  
 1.22. “Sales Materials” means the samples of marketing and
sales literature, brochures, documents and other materials distributed by SFDC in connection with its products and services and the SFDC Web Site. 
  
 1.23. “Server Programs” means, to the extent the Localized Software is based on a client/server architecture, any portion of the
Localized Software that is designed to be installed and used on a server. 
  
 1.24. “SFDC Service” means the service offered by SFDC by which products and services hosted on servers are made available through the Internet for use by customers. The SFDC Service includes without
limitation the products, services, functions and features offered through the SFDC Web Site. 
  
 1.25. “SFDC Web Site” means the HTML, Java, PL/SQL, C, C++ and other software code and associated data and files used by SFDC to operate any Web Site controlled by SFDC at http://www.salesforce.com as
of the Effective Date, and all major and minor modifications, additions to, and deletions from such Web Site, or any successor or substitute Web Site therefor, that are made during the term of this Agreement. 
  
 1.26. “Software” means the object code, source code and
other code versions of SFDC’s customer relationship management software and all other software within the System Technology existing as of the Effective Date or developed during the term of this Agreement, along with all related major and minor
updates, versions, releases, upgrades, corrections, enhancements, fixes, patches, and other modifications to such software developed during the term of this Agreement. “Software” shall include any Server Programs and Client Programs, to
the extent that the Software is based on a client/server architecture. “Software” shall not include any third party software used by SFDC as part of the server infrastructure to deliver the SFDC Service. 
  

 2 

 1.27. “System Technology” shall mean all proprietary computer software (including all
object code, source code, HTML, Java, PL/SQL, C, C++ and other code, files, records and data), and all know-how, techniques, processes, methods, products, applications and other technology that SFDC owns, controls or acquires and has the right to
license to Licensee, to the extent utilized in or for the development, operation, administration, distribution, provision, support, maintenance and/or marketing of the SFDC Service as of the Effective Date (and during the term of the Agreement) and
which are reasonably necessary or relevant for Licensee to develop, operate, administer, distribute, provide, support, maintain and market in the Territory products and services similar to those provided by SFDC as of the Effective Date (and during
the term of the Agreement). System Technology includes, without limitation, the Products, any Localizations of the System Technology developed by SFDC, and other information possessed by SFDC relating to or reasonably necessary to provision of the
Japan Service to Customers (whether Licensee or SFDC hosts the Japan Service). 
  
 1.28. “Territory” means Japan. 
  
 1.29. “Trademarks” means, with respect to a Party, (i) the trademarks, tradenames and service marks used by that Party that are set forth in Exhibit A, whether registered or unregistered; (ii)
the respective stylistic marks and distinctive logos for such trademarks, tradenames and service marks; (iii) such other marks and logos as such Party may designate from time to time in writing as subject to this Agreement; and (iv) in the case of
SFDC, any derivative or Localization of any of the foregoing that has been created pursuant to Section 5. 
  
 1.30. “User Documentation” shall mean the portion of the Documentation which SFDC determines may be distributed, as Localized, to
Customers along with the Localized Software. 
  
 1.31.
“Web Site” shall mean any Internet-based website, URL, network site or other Web or network address. 
  

	2.	Initial Phase: Exclusive Service Reseller. 

  
 2.1. Initial Phase. The Parties acknowledge that it is their intent to have the Japan Service, Localized Web Site and Localized Software hosted
from servers located in the Territory. However, the Parties anticipate it will take some time and resources to Localize, launch and operate such items without any dependence on SFDC’s servers, infrastructure, and commercial software.
Accordingly, the Parties agree that, until such time as Licensee determines it is economically and technologically feasible to host the Japan Service, Localized Web Site, Localized Software and any third party software used by SFDC as part of the
server infrastructure to deliver the SFDC Service, from servers in the Territory and provides written notice to SFDC of such determination, SFDC shall host these items on its servers in the United States and Licensee shall market and sell the Japan
Service to Customers. The Parties will mutually agree on the appropriate method of directing Customers to the Japan Service during the Initial Phase, whether by framing, linking or otherwise, but in any event the Parties agree that Customers will
use the Licensee Web Site as the gateway to the Localized Web Site hosted by SFDC. 
  
 2.2. Exclusivity. Accordingly, SFDC hereby appoints Licensee, and Licensee hereby accepts the appointment, as the exclusive authorized distributor, marketer and seller of the Japan Service to Customers,
with the right to appoint Distributors in the Territory. SFDC agrees it will not, and will not permit any third party to, (except as necessary to fulfill SFDC’s obligations pursuant to this Agreement and the Consulting Services Agreement or as
otherwise agreed by the Parties) create, distribute, sell, market, use, offer, link to or from, frame, or otherwise exploit any Localizations (or any other version targeted at the Japanese-language market) of the SFDC Service, System Technology, any
Product, or any services based on the foregoing, in whole or in part, during the term of this Agreement. 
  
 2.3. Multinational Customers. Each party shall have the right to pursue sales opportunities with any Customer that is a Multinational Company where
the Customer’s headquarters is located (a) in the Territory, in the case of Licensee, and (b) outside the Territory, in the case of SFDC. The Parties agree to develop a policy for revenue sharing that fairly reflects the costs incurred by each
in selling to, providing the SFDC Service or Japan Service, as applicable, to, and supporting such Customers. SFDC agrees it will not enter any agreement with any Multinational Company that would breach the exclusive rights granted to Licensee
hereunder, unless Licensee provides prior written consent thereto and the Parties mutually agree on appropriate revenue sharing or other payment to Licensee in consideration therefor. Licensee agrees it will not enter any agreement with any
Multinational Company that would breach the scope of the exclusive rights reserved by Licensee hereunder, unless SFDC provides prior written consent thereto and the Parties mutually agree on appropriate revenue sharing or other payment to SFDC in
consideration therefor. 
  
 2.4. Commitment. Licensee shall
use commercially reasonable efforts to promote, market and support the Japan Service in the Territory. Licensee shall maintain such staff, equipment and facilities as it deems necessary to adequately serve the needs of Customers of the Japan
Service. 
  
 2.5. Software License. During the term of this
Agreement, including without limitation, during the Initial Phase, Licensee may internally install, operate and use the Software, Documentation and Sales Materials (in their English-language version) solely for purposes of testing, evaluation,
Localization, training and demonstration. 
  

 3 

 2.6. Support; Service Level. SFDC shall, at no additional charge, (a) provide to Licensee, during
the term of this Agreement, the support and maintenance services (“Support Services”) and (b) meet, during the Initial Phase, the service levels (“Service Levels”), in each case as set forth in Exhibit B.

  
 2.7. Training. SFDC shall provide to Licensee, at no
additional charge and at times and locations (potentially web-based) mutually agreeable to the Parties, (a) two (2) in-house technical training sessions with respect to the SFDC Service and System Technology designed for Licensee’s sales
representatives and Licensee’s technical support group; and (b) periodic further technical and sales training sessions to familiarize Licensee with each significant upgrade, update, or modification to the SFDC Service or System Technology. Any
training services requested of SFDC by Licensee in addition to those described in this Section 2.7 shall be governed by the Consulting Services Agreement. 
  
 2.8. Customer Data. During the Initial Phase, SFDC shall provide Customer Data to Licensee in a form substantially similar to that used by SFDC.
SFDC may internally use such Customer Data solely for the purposes of fulfilling its obligations under this Agreement, including without limitation, providing support, and shall comply with Licensee’s privacy policies with respect to such use.
Each Party agrees to comply with all applicable laws with respect to use of the Customer Data. 
  
 2.9. Delivery. Promptly following the Effective Date, SFDC shall deliver to Licensee a copy in electronic form of the System Technology and, if any, Localizations thereof. Thereafter, SFDC shall deliver to
Licensee, at no additional cost, a copy of any new System Technology and any major or minor upgrades, updates, fixes, modifications, or enhancements to the System Technology, as Localized (if applicable), as SFDC may develop or obtain from time to
time; SFDC shall deliver such materials to Licensee as soon as reasonably practicable after creating or obtaining such materials or deploying such materials in conjunction with the SFDC Service but in any event no later than the date SFDC first
makes any such materials available to any third party. 
  
 2.10.
End of Initial Phase. Upon delivery of notice in accordance with Section 2.1, the Parties shall cooperate in transitioning the Japan Service and all other Localized Products, as applicable, from SFDC’s control and SFDC’s servers to
Licensee’s control and Licensee-designated servers in Japan, with a target of completing such transition within one hundred eighty (180) days after SFDC’s receipt of such notice. Unless otherwise mutually agreed by the Parties, upon
completion of the transition SFDC will cease hosting and operation of the Localized Web Site and Japan Service, and all other use of the Localized Products, except as reasonably necessary to perform SFDC’s obligations hereunder and under the
Consulting Services Agreement. The period of time from the Effective Date through the completion of the transition and cessation of SFDC’s hosting is referred to herein as the “Initial Phase.” 
  

	3.	License Grant. 

  
 3.1. Grant of License. SFDC hereby grants and agrees to grant to Licensee, under SFDC’s Intellectual Property Rights, an exclusive
(even as to SFDC), royalty-free, non-transferable (except as provided in Section 3.3), non-assignable (except as provided in Section 14.3) license during the term of this Agreement to use and otherwise exploit the System Technology and Localizations
thereof and associated Intellectual Property Rights in the Territory, and to sublicense (pursuant to Section 3.3) the System Technology and Localizations thereof and associated Intellectual Property Rights in the Territory. The foregoing license
shall include, but not be limited to, the right to: 
  
 A. create
Localized Products and derivative works of the System Technology and Localizations thereof; 
  
 B. use, reproduce, publicly display, publicly perform, modify, and distribute, and provide access via the Internet to, the Localized Web Site; 
  
 C. use, reproduce, publicly display and publicly perform the Localized Products for (i) internal testing, evaluation,
maintenance and support; (ii) training personnel in the marketing and sales of the Japan Service; (iii) internal technical training; and (iv) demonstrating and promoting the Japan Service to potential Customers; 
  
 D. use, reproduce, publicly display, publicly perform, and distribute copies
of the Localized User Documentation and Localized Client Programs to Customers, and permit Customers to use the Localized Software through the Japan Service, subject in each case to a customer agreement in accordance with Section 3.3; 
  
 E. use, reproduce, publicly display, publicly perform, and distribute copies
of the Localized Sales Materials to the general public; 
  
 F.
after the Initial Phase, copy the System Technology and Localizations thereof for archival or backup purposes; 
  
 G. create co-branded sites in Japan; and 
  
  

 4 

 H. reproduce and distribute to employees and Distributors any Documentation provided in connection with
the technical and sales training provided by SFDC to the Company pursuant to Section 2.7 and the Consulting Services Agreement, and Localizations thereof, for use in providing similar training to employees and Distributors. 
  
 3.2. Permissible Incidental Use. Licensee hereby agrees it will not
direct marketing or promotional materials and efforts to persons other than Customers. However, SFDC acknowledges that because of the nature of the Internet third parties may be able to access the Japan Service, and that such incidental access is
not a material breach of this Agreement. Accordingly, the foregoing license includes the following: 
  

	 	A.	The use of the Japan Service, Localized Web Site and Client Programs by Customers while outside of the Territory; 

  

	 	B.	The incidental access to portions of the Japan Service and Localized Web Site via electronic gateways and electronic distribution channels by third parties other than Customers by
virtue of the accessibility of the Japan Service through the Internet, but Licensee shall not promote such access; and 

  

	 	C.	The caching within or outside the Territory of content and software by Internet service providers and other third parties providing network and infrastructure services for
electronic gateways and electronic distribution channels. 

  
 3.3. Sublicenses. The license granted to Licensee pursuant to Section 3.1 includes the right of Licensee to grant sublicenses within the scope of such license to any third party, subject to SFDC’s prior written consent, not to
be unreasonably withheld. Notwithstanding the foregoing, with respect to standard sublicenses reasonably necessary for conduct of the Business, such as in connection with hiring subcontractors to assist with Localization, appointing Distributors to
resell the Japan Service, creating co-branded sites or custom applications for Customers to host, or providing Customers with a copy of the Localized Client Program or with access to the Localized Software through the Japan Service, Licensee may,
prior to use, submit its standard form of subcontractor, Distributor, Customer or similar agreement, as applicable, to SFDC for approval, such approval not to unreasonably withheld, conditioned or delayed. Upon such approval, Licensee may continue
to grant sublicenses pursuant to such agreement (as may be revised through negotiation, provided such revisions do not materially adversely affect SFDC’s rights or interests), without obtaining SFDC’s prior consent. 
  
 3.4. Web Site Address. Licensee shall have the right to operate the
Japan Service, during the term of this Agreement, under the Domain Names, or, during the Initial Phase, at http:///www.salesforce.com/jp. 
  
 3.5. No Reverse Engineering. Licensee agrees that, except as expressly permitted herein or as may be expressly agreed by SFDC in writing, it shall
not and shall not permit any third party to, disassemble, decompile, or reverse engineer the object code version of the Software, Localized Software, SFDC Web Site, or Localized Web Site, except to the extent permitted by applicable law. 

 
 3.6. Marking Requirement. Each Party will accurately produce or
reproduce all of the other’s respective proprietary rights notices and legends, as reasonably required by the other Party, on any and all materials such Party produces or reproduces hereunder. 
  

	4.	Ownership. 

  
 4.1. SFDC Ownership Rights. SFDC and its licensors shall retain all right, title and interest in and to the System Technology, SFDC’s
Trademarks, and any Localizations thereof. Licensee does not acquire any rights, express or implied, in the System Technology, SFDC’s Trademarks, or Localizations thereof other than those licenses granted in this Agreement. 
  
 4.2. Assignment. Licensee hereby assigns and agrees to assign to SFDC
all its right, title and interest in and to any Localizations of or other derivative works of the Products and SFDC’s Trademarks created by Licensee during the term of this Agreement (excluding trade name rights and any domain name
registrations in Japan, as such rights are not assignable), along with Licensee’s associated Intellectual Property Rights therein. Licensee further waives and agrees not to assert (and will cause its employees, contractors, or consultants to
agree to waive and not assert) any “moral” rights or other rights with respect to attribution of authorship or integrity that Licensee or any such employee, contractor, or consultant may have under applicable law. 
  
 4.3. Licensee Ownership Rights. SFDC and its licensors shall retain
all right, title and interest in and to any software, content, technology, know-how, trademarks, works of authorship, designs, inventions and any other intellectual property SFDC or its licensors develop, create or conceive of during the term of
this Agreement, except as provided in Section 4.2. Licensee shall retain all right, title and interest in and to all Customer Data. 
  
 4.4. Right of First Refusal. Licensee hereby grants to SFDC a right of first refusal to license, for use outside the Territory and not in
connection with products or services targeted primarily at Customers or the Japanese market, any intellectual property, and associated Intellectual Property Rights, developed and owned by Licensee, including without 

  

 5 

 
limitation, patents, trademarks and know-how, except to the extent Licensee is prevented from granting such rights due to a pre-existing binding obligation
to a third party governing such development (“Future IP”). Within ten (10) days of receipt of written notice from Licensee describing any such Future IP, SFDC will notify Licensee of whether it is interested in pursuing negotiations
to license such Future IP. If SFDC notifies Licensee of such interest, the Parties agree to enter into arm’s-length negotiations to determine the terms and conditions of such license. If the Parties are unable to reach agreement on such terms
and conditions within sixty (60) days of commencing negotiations, or if SFDC fails to notify Licensee of its interest in pursuing negotiations within the notice period, Licensee will thereafter have the right to offer the Future IP to third parties
without further obligation to SFDC. 
  

	5.	Localization. 

  
 5.1. Localization Obligations. Promptly following the Effective Date, SFDC shall commence development of a localizable version of the Software and
the SFDC Web Site in consultation with Licensee and in accordance with one or more Statements of Work to be executed by SFDC and Licensee and incorporated herein. Each such Statement of Work shall include a delivery schedule, cost estimate, and
specifications for the development. SFDC shall conduct and be responsible for development of localizable versions of the Products and System Technology as necessary for the development and operation of the Japan Service. Licensee shall cooperate
with SFDC’s development efforts by, for example, informing SFDC of adaptations or additions Licensee deems necessary or desirable in order to accommodate and satisfy the needs, preferences, cultural expectations or customs of Customers in the
Territory or to support the computer equipment of typical Customers in the Territory. SFDC shall use commercially reasonable efforts to complete the development in accordance with the Statement of Work. Licensee will reimburse SFDC for its actual,
reasonable out-of-pocket expenses incurred in performing the development (i.e., costs of economy travel to Japan, if necessary and requested by Licensee, but not any allocated overhead or fixed costs). SFDC shall use reasonable efforts to manage the
process and substance of the development in order to minimize expenses. As SFDC develops new versions of or modifications to the SFDC Service, or plans and develops additional features and functions to be added to the SFDC Service, SFDC and Licensee
will communicate closely and collaborate during all stages of such planning, development and testing processes to ensure both the smooth development of Localized Products based on such new versions, features, or functions and the timely release of
such Localized Products to Customers. 
  
 5.2. Localization
Standards. The Localized Software, Localized Web Site, Localized System Technology, and the resulting Japan Service shall have approximately the same functionality, features and performance as the Software, SFDC Web Site, System Technology and
SFDC Service. During the Initial Phase, SFDC shall enable, facilitate and permit ready access by Licensee to the Localized Products and Japan Service, so that Licensee may further enhance, modify and Localize such items and may include third-party
content and other offerings in the Japan Service. 
  
 5.3.
Localized Content. Licensee shall be responsible for providing all local content on the Localized Web Site, including, but not limited to, any local news or information, local customer data, resource center, and hyperlinks. Licensee shall be
solely responsible for obtaining any necessary third party licenses for such third-party content. Licensee shall not place any advertisements or promotions (for non-Licensee products and services) on the Localized Web Site without SFDC’s prior
written consent. SFDC shall not place any such content, advertising or links on the Localized Web Site without Licensee’s prior written consent and shall not be entitled to receive any revenues in connection with any such items. 
  
 5.4. Acceptance Testing. SFDC acknowledges that the quality and
accuracy of the Localized Products are important to Licensee. Promptly upon completion, SFDC shall deliver each Statement of Work deliverable to Licensee. Licensee shall then test and evaluate the deliverable to determine whether the associated
Localized Product is suitable for commercial release. Such determination shall be based on, among other things, the functionality and public performance of the Localized Software. SFDC shall not use the Localized Products unless and until SFDC
obtains prior written approval from Licensee. In the event Licensee determines that a Localized Product is not suitable for commercial release, Licensee may, at its option, grant SFDC a further thirty (30) day period (or such longer period as the
Parties may agree upon) in which to correct any inaccuracies, inadequacies, inconsistencies, defects, deficiencies or other problems in the deliverables; or, with SFDC’s consent and cooperation, which shall not be unreasonably withheld, correct
the deliverables. 
  
 6. Marketing Cooperation. 
  
 6.1. Business Liaisons. As soon as practicable following the Effective
Date, each Party shall designate a dedicated business liaison to manage the relationship between the Parties throughout the term of this Agreement. These liaisons will coordinate regular meetings (whether in person or via telephone conference)
between the Parties at mutually agreed upon intervals to accomplish objectives including but not limited to the on-going sharing of information such as interface specifications, feature interactions, and product enhancement opportunities that would
benefit existing and future Customers. 
  
 6.2. Marketing
Assistance. Throughout the term of this Agreement, SFDC shall provide Licensee with marketing assistance, including but not limited to supplying Licensee with all English-language Sales Materials and training materials 

  

 6 

 
reasonably requested by Licensee. SFDC hereby grants and agrees to grant to Licensee a license to reproduce, publicly display, publicly perform and
distribute all such training materials and to Localize and otherwise modify all such materials in a manner mutually agreed upon by the Parties. SFDC hereby grants and agrees to grant to Licensee the right to grant sublicenses to Distributors of the
scope of the license contained in this Section 6.2. SFDC shall use commercially reasonable efforts to advertise and promote the Japan Service, by for example, including a link on SFDC’s Web Sites to the Localized Web Site, subject to
Licensee’s approval of placement, size and other matters. 
  
 6.3. Demonstration. Promptly following the Effective Date, SFDC shall provide Licensee with any _____ develops for demonstrating the Software or SFDC Service to the extent such materials may be applicable _____ use in demonstrating
the Japan Service, and Licensee may use and allow its Distributors to use such ______ the Japan Service to current and potential Customers and at trade shows in the Territory. At Licensee’s _____ assist Licensee in Localizing
demonstration materials and in the joint development of additional ______ 
  
 6.4. Joint Press Release. As soon as practicably possible after the Effective Date, the Parties shall ______ release announcing the collaboration between Licensee and SFDC set forth herein (“Joint Press
Release”). Release shall be subject to the review and approval by each Party prior to release, such approval not to be ______ withheld. Throughout the term of this Agreement, the Parties shall cooperate in public relations activities ______
achievements of milestones such as launch of the fully Localized Japan Service, launch of the Japan ______ and so forth. 
  

	7.	Trademark License. 

  
 7.1. License Grant. Each Party (“Grantor”) hereby grants and agrees to grant to the other Party (“______ exclusive,
non-transferable (except in connection with Licensee’s sublicense rights under Section 3), ______ pursuant to Section 14.3), royalty-free license to use, reproduce, publicly display and distribute the Grantor ______ solely in connection with
performing or exercising the other Parry’s rights, duties and obligations hereunder. 
  
 7.2. Use Guidelines. The trademark licenses above shall be subject to conformance with the Grantor’s reasonable trademark usage policies. In addition, at least one week before using, or modifying the use
of, any Trademark belonging to the Grantor, the Grantee shall provide the Grantor with accurate and complete copies of all tangible media (including software or other means for producing such tangible media) showing the Trademark as it is proposed
to be used. The Grantor shall have one week to object to the Grantee’s use of the Trademark and, if no objection is lodged within the one week period, the Grantee shall be entitled to use the Trademark as proposed. 
  
 7.3. Standards. During the period of use, the Grantee shall reasonably
cooperate with the Grantor in facilitating the Grantor’s monitoring and control of the nature and quality of products and services bearing the Grantor’s Trademarks, and shall supply the licensing Party with specimens of the Grantee’s
use of the Grantor’s Trademarks upon request. If the Grantor notifies the Grantee that the Grantee’s use of the Grantor’s Trademarks is not in compliance with the Grantor’s trademark policies, the Grantee shall immediately take
such steps as are necessary for compliance with such policies. If the Grantee fails to comply, the Grantor shall have the right to suspend the use of the Grantor’s Trademarks. Neither Party shall, by any act or omission, make any express or
implied reference or use the other Party’s Trademarks in any manner that disparages or reflects adversely in any material respect on that Party. Licensee or Licensee’s Distributors shall not display any SFDC Trademark larger than or more
prominently than those of Licensee. 
  
 7.4. Goodwill.
Neither Party shall gain any right, title or interest with respect to the other Parry’s Trademarks by use thereof, and all rights or goodwill associated with the other Party’s Trademarks shall inure to the benefit of the other Party.

  
 7.5. Exclusivity. Notwithstanding the foregoing, during
the term of this Agreement Licensee’s right to use SFDC’s Trademarks in the Territory shall be exclusive (even as to SFDC) and SFDC shall not, and shall not license or otherwise permit any third party to, offer or provide any services or
products aimed at Customers using any of SFDC’s Trademarks (including without limitation Localizations) thereof. 
  

	8.	Payments. 

  
 8.1. Payments to SFDC. Licensee shall make quarterly payments to SFDC, each of which shall be a total of thirty percent (30%) of the Net Revenues
received and earned by Licensee from each Distributor or Customer during such fiscal quarter. Such quarterly payments will be made within forty-five (45) days of the end of each fiscal quarter. “Net Revenues,” as used herein, shall
mean the revenue actually received and earned by Licensee from Customers’ subscription ___ license fees for use of the Localized Software through the Japan Service, less (a) normal and customary rebates, sales commissions and discounts, (b)
sales, value-added, use and/or other excise taxes or duties actually paid, (c) costs passed through to the Customer or Distributor (e.g., shipping, insurance and handling charges), (d) amounts allowed or credited due to returns and refunds, (e) the
cost of content, and (f) any other direct charges incurred on the sale of the subscription or license. For avoidance of doubt, Net Revenues does not include any payments made by a third party, including without 

  

 7 

 
limitation, Customers, for development, maintenance, consulting or other services provided by Licensee or its subcontractors in connection with any such
subscription or license. 
  
 8.2. Payment Statements.
Within forty-five (45) days of the end of each fiscal quarter, Licensee shall render to SFDC a statement of account documenting the number of subscriptions or licenses to the Japan Service sold by Licensee and Distributors to Customers during such
fiscal quarter and SFDC’s licensing proceeds for such fiscal quarter. Licensee shall, at SFDC’s option, accompany such statements with a check or wire funds to a bank account specified by SFDC in payment of the amount due for such calendar
quarter. 
  
 8.3. Audit Rights. Upon forty-five (45) days
written notice, either Party (“Auditing Party”) may cause to be examined through a nationally recognized accounting firm (“Auditor”), the books of account of the other Party (“Audited Party”)
insofar as they relate to the sale of subscriptions or licenses to the Japan Service (where Licensee is the Audited Party) or the provision of Localization services (where SFDC is the Audited Party). Such examination shall be at the Auditing
Party’s own expense unless such examination reveals an underpayment of ten percent (10%) or more by the Audited Party pursuant to this Agreement in any Licensee fiscal quarter, in which case the cost shall be borne by the Audited Party and
payment of the amount due shall be made within forty-five (45) days thereafter. In connection with any such audit, the Auditing Party shall cause the Auditor to enter into a mutually agreeable nondisclosure agreement with the Audited Party which
shall restrict the Auditor from disclosing to the Auditing Party any of the Audited Party’s books of account, or the contents thereof, other than whether or not the amounts of fees or expenses previously reported to the Auditing Party for the
audited period are accurate and the amount of any payments due or over-paid for the audited period. Audits shall occur no more than once a year during the normal business hours of the Audited Party. The Audited Party shall not be required to retain
supporting records, except as required by local laws, for a period more than one (1) year after the rendition of any statement. Each Party’s audit rights under this provision shall continue for one year after the termination of this Agreement.

  
 8.4. Taxes. If Licensee is required by law to pay any
tax on or to make any deduction or to withhold any amount from any sum payable to SFDC by Licensee on behalf of SFDC hereunder, Licensee is hereby authorized to remit such amounts to the appropriate governmental authorities and Licensee shall
promptly furnish SFDC with appropriate evidence of such payment 
  
 8.5. Pricing. Nothing contained in this Agreement shall in any way limit or restrict the freedom of Licensee to determine the resale price for the Japan Service. 
  

	9.	Term and Termination. 

  
 9.1. Term. This Agreement shall commence upon the Effective Date and shall remain in effect in perpetuity unless and until terminated earlier
pursuant to this Section 9. Notwithstanding the foregoing, the Parties may agree in any Statement of Work that any of the services may be appropriately phased out and terminated prior to the end of the term of this Agreement. 
  
 9.2. Termination for Cause. This Agreement may be terminated by a
Party for cause immediately by written notice upon the occurrence of any of the following events: 
  

	 	A.	The commencement of a petition, proceeding or case seeking the other Party’s bankruptcy, insolvency, reorganization, liquidation, dissolution or winding-up, or readjustment of
its debts, or seeking the appointment of a receiver, trustee or the like of itself or its assets, or otherwise seeking relief from its creditors and, in the case of an involuntary petition, proceeding or case, such petition, proceeding or case
continues undismissed for, or an order approving or ordering any of the foregoing is entered and is not stayed within, sixty (60) calendar days; or 

  

	 	B.	If the other Party materially breaches any material provision of this Agreement and fails to cure such breach within sixty (60) days of written notice describing the breach in
reasonable detail. 

  
 9.3. Termination by
Licensee. This Agreement may be terminated, without cause, by Licensee upon 180 days’ advance written notice to SFDC. 
  
 9.4. Automatic Termination. Subject to Section 9.6, this Agreement shall automatically terminate on the effective termination date of the JV
Agreement between the Parties of even date hereto. 
  
 9.5.
Return of Property. Within thirty (30) days after any termination or expiration of this Agreement, each Party shall return to the other Party, or at the other Party’s request destroy, all copies or portions of all information and
materials containing or constituting Confidential Information or Trademarks of the other Party, provided however that a Party may, during the Transition Period, retain such portions of Confidential Information and Trademarks reasonably necessary to
exercise its rights and perform its obligations pursuant to Section 9.6. Upon completion of the Transition Period, at the other Party’s request, a Party shall furnish to the other Party an affidavit signed by an officer of such Party certifying
that, to the best of its knowledge, such delivery or destruction has been fully effected. 
  

 8 

 9.6. Transition Period. For a period of eighteen (18) months following the date of termination
notice (“Transition Period”), the Parties shall cooperate in good faith to permit Customers to smoothly transition with minimum disruption from the Japan Service offered by Licensee under this Agreement to a substitute service. Such
efforts shall include, without limitation, the following: (a) subject to the following Section 9.6(C), Licensee will deliver a notice (“Notice”) to then-current Customers and Distributors under contract with Licensee informing them
that the Japan Service will terminate no later than the end of the Transition Period; (b) all licenses from one Party to the other Party will continue in effect during the Transition Period in accordance with their terms to permit the Parties to
exercise their respective rights and perform their respective obligations during such period; (c) Licensee may continue to provide the Japan Service to then-existing Customers during the Transition Period; (d) SFDC will continue to provide such
support, hosting and other services necessary to enable Licensee to continue to provide the Japan Service to existing Customers during the Transition Period; (d) Licensee will continue to pay to SFDC the percent of Net Revenues received with respect
to the Transition Period in accordance with Section 8; (e) Licensee may continue to use “salesforce.com” in its corporate name but will take such steps as are necessary to remove such word from the registered corporate name of Licensee by
the end of the Transition Period; and (f) all Customer licenses governing use of the Client Programs and User Documentation will survive in accordance with their terms. In addition, in the event that this Agreement is terminated: 
  

	 	A.	by SFDC pursuant to Section 9.2, then the Notice will also inform Customers and Distributors of the availability of a comparable substitute service specified by SFDC; or

  

	 	B.	by Licensee pursuant to Section 9.2, then (i) SFDC shall deliver, to the extent not already delivered, all System Technology, any major or minor upgrades, updates, fixes,
modifications, or enhancements to the System Technology, and all Localizations of the foregoing (and Licensee shall pay SFDC’s reasonable out-of-pocket costs, if any, incurred in completing such delivery); (ii) the Transition Period shall
become perpetual (i.e. not limited to eighteen (18) months), provided Licensee may terminate the Transition Period by written notice to SFDC; and (iii) notwithstanding the foregoing Section 9.6 (a), Licensee shall have no obligation to deliver a
Notice to Customers and Distributors. 

  
 9.7.
Survival. The defined terms and the provisions of Sections 4 (“Ownership”) (except for Section 4.4), 8 (“Payment”) (only to the extent any payments are owed to SFDC for Localization expenses or Net Revenues accrued prior
to the date of termination of the Transition Period), 9 (“Term and Termination”), 10 (“Confidentiality”), 12 (“Indemnification”), 13 (“Limitation of Liability”), 14 (“General Provisions”) and 15
(“Dispute Resolution”) shall survive any termination or expiration of this Agreement. 
  
 9.8. Continuing Liability. Termination of this Agreement for any reason shall not release either Party from any liability or obligation which has
already accrued as of the effective date of such termination, and shall not constitute a waiver or release of, or otherwise be deemed to prejudice or adversely affect, any rights, remedies or claims, whether for damages or otherwise, which a Party
may have hereunder, at law, equity or otherwise or which may arise out of or in connection with such termination. 
  
 9.9. Consequences of Termination. Except during the perpetual Transition Period, if applicable, as provided in Section 9.6, upon termination or
expiration of this Agreement for any reason whatsoever, Licensee shall cease to promote or solicit new orders for subscriptions or licenses to the Localized Software. Upon termination or expiration of the Transition Period following termination of
this Agreement for any reason whatsoever all licenses granted under this Agreement shall terminate and (a) Licensee shall immediately: (i) cease all use of System Technology and Localizations thereof; (ii) discontinue use of SFDC’s Trademarks,
including without limitation, complete such steps as are necessary to change Licensee’s corporate name to remove “salesforce.com” therefrom; (iii) discontinue all representations or statements from which it might be inferred that any
relationship exists between Licensee and SFDC; and (iv) return all System Technology and Localizations thereof to SFDC; and (v) assign to SFDC all of Licensee’s Trademarks which contain the name “salesforce.com”; and (b) SFDC shall
immediately discontinue use of Licensee’s Trademarks. 
  

	10.	Confidentiality. 

  
 10.1. Confidential Information. Each Party hereby agrees (i) to hold and to cause each of such Party’s agents, employees and representatives
to hold the other Party’s Confidential Information in strict confidence and to take reasonable precautions to protect such Confidential Information including, without limitation, all precautions the receiving Party employs with respect to its
own confidential materials, (ii) not to divulge any such Confidential Information or any information derived therefrom (including, without limitation, by way of interviews, responses to questions or inquiries, press releases or otherwise) to any
third person; (iii) not to make any use whatsoever at any time of such Confidential Information except as contemplated hereunder, and (iv) not to copy or reverse engineer any such Confidential Information. For purposes of this Section 10.1,
“Confidential Information” shall mean, without limitation: 
  

	 	A.	any information that is specifically marked as “Confidential”; 

  

 9 

	 	B.	information which the management of Licensee or SFDC has requested in writing to be kept confidential; 

  

	 	C.	information which is disclosed verbally and identified as confidential at the time of disclosure; and 

  

	 	D.	information which, by its nature, must be kept confidential in order to prevent adverse consequences to the Business or either Party. 

  
 10.2. Exceptions to Confidentiality Obligations. “Confidential
Information” shall not include information that: 
  

	 	A.	was already known to the receiving Party prior to disclosure by the disclosing Party; 

  

	 	B.	is in or has entered the public domain through no breach of this Agreement or other wrongful act of the receiving Party; 

  

	 	C.	has been rightfully received by the receiving Party from a third party and without breach of any obligation of confidentiality of such third party to the owner of the Confidential
Information; 

  

	 	D.	has been approved for release by written authorization of the owner of the Confidential Information; or 

  

	 	E.	has been independently developed by the receiving Party. 

  
 The Customer Data shall be deemed Licensee’s Confidential Information. Notwithstanding any provision in this Agreement to the contrary, a Party may
disclose Confidential Information of the other Party to the extent it is required to be disclosed pursuant to a valid order or requirement of a governmental agency or court of competent jurisdiction, provided that the owner of the Confidential
Information shall be given reasonable notice of such an order or requirement and the opportunity to contest it. 
  
 10.3. Limitation on the Flow of Information. The Parties shall endeavor to give access to the other Party’s Confidential Information only to
such persons who are either bound by a professional duty of confidentiality or who require knowledge of the information as employees, representatives, authorized persons, advisors, officers or directors of the respective Party for orderly conduct of
business of the Party concerned. Each Party shall also require the recipients of the other Party’s Confidential Information to undertake to keep such Confidential Information secret. 
  
 10.4. Duration of Obligation. The obligations of this Section 10 shall continue to be in full force with respect to a
Party even after such Party shall have ceased to be a Party to this Agreement and shall survive with respect to each Party for five (5) years after (i) any termination or expiration of this Agreement or (ii) such Party shall have ceased to be a
Party to this Agreement, whichever comes earlier. 
  

	11.	Representations and Warranties. 

  
 11.1. SFDC represents and warrants to Licensee that: 
  

	 	A.	upon delivery, the Localized Software (in the form Localized and delivered by SFDC) will function in accordance with the mutually agreed upon specifications and Documentation
therefor; 

  

	 	B.	the Localized System Technology provided by SFDC will function at the approximately same level of responsiveness and efficiency in Licensee’s hosting environment as the System
Technology does in SFDC’s own server environment, provided Licensee operates the System Technology in a server environment substantially similar to that of SFDC’s — including but not limited to network bandwidth and comparable
equipment, servers, and third-party commercial software; 

  

	 	C.	the Localized System Technology, in the form as Localized and delivered by SFDC, to the best of SFDC’s knowledge, (i) does not contain any computer virus and (ii) will not
otherwise introduce any harmful or destructive code to the computers of Licensee, Distributors or Customers; 

  

	 	D.	SFDC has good and marketable title to, and the right to license all of the System Technology and Localizations thereof provided by SFDC pursuant to this Agreement free and clear of
all liens, security interests, and encumbrances; 

  

	 	E.	no claims have been made or, to its knowledge, threatened, in respect of the System Technology or SFDC’s Trademarks, and no proceedings have been instituted or are pending or
threatened that challenge the rights of SFDC in respect thereof, except that a general inquiry has been received from counsel representing “Salesforce2000.com”; 

  

	 	F.	the use of the System Technology and Localizations thereof in accordance with the terms of this Agreement does not infringe the copyright or trade secret rights of any party, nor,
to the best of SFDC’s knowledge, any patents or other rights of others; and 

  

 10 

	 	G.	the System Technology and localizable versions thereof to be delivered to Licensee under this Agreement include all of the technology, except for third party equipment, hardware,
and generally available commercial software, required for Licensee to be able to provide the Japan Service in the Territory in a manner comparable to the way the SFDC Service is provided by SFDC as of the date hereof. 

  
 11.2. Mutual Representations. Each Party warrants and represents that
the execution, delivery and performance of this Agreement (i) are within its corporate powers, (ii) have been duly authorized by all necessary corporate action on such Party’s part, and (iii) do not and will not contravene or constitute a
default under, and are not and will not be inconsistent with, any judgment decree or order, or any contract, agreement, or other undertaking applicable to such Party. 
  
 11.3. Disclaimer of Warranties. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 11, NEITHER PARTY MAKES ANY WARRANTIES,
WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NONINFRINGEMENT OF THIRD-PARTY RIGHTS. 
  

	12.	Indemnification. 

  
 12.1. Indemnity Obligation. SFDC will (i) defend Licensee against any action or claim brought by a third party to the extent that it is based upon
any claim that the System Technology, any SFDC Trademark or any Localizations thereof, as provided by SFDC to Licensee under this Agreement and used within the scope of this Agreement, infringe any U.S. or Japanese patent rights, copyright rights,
or other intellectual property rights, or incorporates any misappropriated trade secrets (a “Claim”), and (ii) pay any liabilities, costs, damages, and expenses, including reasonable attorneys’ fees, attributable to such Claim,
provided that Licensee (i) promptly notifies SFDC in writing of the Claim; (ii) grants SFDC sole control of the defense and settlement of the Claim; and (iii) provides SFDC with assistance, information, and authority reasonably required for the
defense and settlement of the Claim. Licensee may retain its own counsel, at its own expense, to monitor the defense and settlement of the Claim. SFDC shall not enter any Settlement of a Claim affecting Licensee’s rights or obligations without
Licensee’s written consent. 
  
 12.2. Additional
Remedies. Without limiting SFDC obligations under the foregoing Section 12.1, if Licensee’s use of any of the System Technology or SFDC Trademarks as Localized hereunder becomes subject to a Claim, or in SFDC’s opinion is likely to
become subject to a Claim, SFDC may, at its sole option and expense: (i) procure for Licensee the right to continue using such System Technology, SFDC Trademark or Localization thereof under the terms of this Agreement; or (ii) replace or modify
such System Technology, SFDC Trademark or Localization thereof so that it is non-infringing, provided, however, that any such efforts do not substantially diminish the functionality of the System Technology or Localization thereof. 
  
 12.3. Exclusions. SFDC will have no obligations under this Section 12
if (i) the infringement is caused by the use of non-SFDC products in combination with the System Technology, SFDC Trademark or Localization thereof where such infringement would not have arisen but for such combination, or (ii) the infringement is
caused by the use of other than the current version of the localizable Software if the current version would be non-infringing, provided that such current version had been provided to Licensee a sufficient time prior to such infringement arising to
allow Licensee to distribute (and Localize, if necessary) such current version to its customer base. 
  

	13.	Limitation of Liability. 

  
 EXCEPT FOR BREACH OF A PARTY’S CONFIDENTIALITY OBLIGATIONS UNDER SECTION 10 AND SFDC’s INDEMNIFICATION OBLIGATIONS UNDER SECTION 12, NEITHER
PARTY WILL BE LIABLE FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES OF ANY KIND OR NATURE WHATSOEVER, OR FOR ANY LOST PROFITS, LOST REVENUES OR BUSINESS INTERRUPTIONS, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

  

	14.	General Provisions. 

  
 14.1. Nature of Relationship. This Agreement shall not be construed as creating an agency, partnership, joint venture or any other form of
association, for tax purposes or otherwise, between the Parties, except to the extent, if any, expressly set forth in this Agreement or the JV Agreement; and the Parties shall at all times be and remain independent contractors. Except as expressly
agreed by the Parties in writing, neither Party shall have any right or authority, express or implied, to assume or create any obligation of any kind, or to make any representation or warranty, on behalf of the other Party or to bind the other Party
in any respect whatsoever. 
  
 14.2. Entire Agreement. This
Agreement, the JV Agreement, and the Consulting Services Agreement contain the entire agreement between the Parties relating to the subject matter contemplated by this Agreement and supersede any previous or 

  

 11 

 
contemporaneous written or oral agreements, representations or promises of the Parties (if any), relating to the subject matter hereof. 
  
 14.3. Assignment. Neither this Agreement nor any of the rights and
obligations created hereunder may be assigned, transferred, pledged, or otherwise encumbered or disposed of, in whole or in part, whether voluntarily, or by operation of law, or otherwise, by either Party without the prior written consent of the
other Party; provided, however, either Party may assign or otherwise transfer this Agreement without the other Party’s consent in connection with the sale of all or substantially all of its assets or stock or its merger with or into another
entity. An assigning Party shall promptly notify the other Party in writing of any assignment. 
  
 14.4. Interpretation. The headings in this Agreement are for ease of reference only and do not affect the substance of any provision. Words denoting the singular include the plural and vice versa. Words
denoting any one gender include all genders. All references to a statutory provision shall be construed as including references to any statutory modification or re-enactment thereof (whether before or after the date of this Agreement) for the time
being in force. 
  
 14.5. Modifications to Agreement. No
provisions of this Agreement (including, without limitation, the Exhibits attached hereto) may be amended or modified, in whole or in part, otherwise than by an instrument in writing signed by both Parties or their successors or permitted assignees.

  
 14.6. No Third Party Beneficiaries. This Agreement
shall inure to the benefit of, and be binding upon, each of the Parties and their respective successors and permitted assignees, subject to the provisions of this Agreement, but shall not inure to the benefit of any third party. 
  
 14.7. Severability and Invalidity. In the event that any provisions of
this Agreement be found to be, in whole or in part, invalid or unenforceable by a court of competent jurisdiction, the validity or enforceability of the remaining provisions under applicable law will not be affected thereby and shall remain binding
upon the Parties. Any such invalid or unenforceable provisions shall be substituted by a valid or enforceable provision which, in its essential purpose, comes as close as possible to the invalid or unenforceable provision; the same applies
mutatis mutandis to any gaps in this Agreement. 
  
 14.8.
Waivers. The failure of either Party to enforce or to exercise, at any time or for any period of time, any right or remedy arising pursuant to or under this Agreement does not constitute, and shall not be construed as, a waiver of such right
or remedy and shall in no way affect that Party’s right to enforce or exercise it at a later time, provided that such right or remedy is not time-barred or otherwise precluded by law or by a writing expressly waiving such right or remedy and
signed by that Party seeking to assert such right or remedy. 
  
 14.9. Exhibits. All exhibits to this Agreement are an integral part of this Agreement as if fully set forth herein. All references herein to an exhibit shall be deemed to be references to an exhibit of this Agreement unless the
context shall otherwise require. 
  
 14.10. Notices. All
notices, requests, demands, consents, approvals, documents, reports or returns required or permitted by this Agreement shall be in writing and shall be deemed to have been given to the recipient when (i) delivered by hand, (ii) sent by facsimile
(with receipt confirmed by a machine-generated transmission record), provided that a copy is concurrently mailed by registered or certified mail, postage prepaid, return receipt requested, or (iii) when received by the addressee, if sent by courier
service (return receipt requested), in each case to the appropriate addresses set forth below (or to such addresses and/or facsimile numbers as a Party may hereafter designate as to itself by written notice to the other Party). 
  
 If to SFDC: 
  
 Salesforce.com, Inc. 
 The Landmark @ One Market, Suite 300 
 San Francisco, CA 94105 USA 
 Attention: Andrew P. Hyde, Chief Financial Officer 

Telephone: (415)901-7060 
 Facsimile:    (415)901-7047 
  
 with a copy to (which shall not constitute notice): 
  
 Skadden, Arps, Slate, Meagher, & Flom LLP 
 525 University Avenue, Suite 220 
 Palo Alto, CA 94301 USA 
 Attention: Thomas Lane, Esq. 
  

 12 

 Telephone: (650) 470-4620 
 Facsimile:    (650) 470-4570 
  
 If to Licensee: 
  
 salesforce.com Japan, Ltd. 
 Shibuya Mark City 17F 
 1-12-1 Dogenzaka 
 Shibuya-ku, Tokyo, 150-0043 Japan 
 Attention: Akira Kitamura 
 Telephone: 81-3-5459-0490 
 Facsimile:    81-3-5459-0491 
  
 with a copy to (which shall not constitute notice): 
  
 Morrison & Foerster LLP 
 755 Page Mill Road 
 Palo Alto, CA 94304 USA 
 Attention: Naoki Shimazaki, Esq. 
 Telephone: (650) 813-5600 
 Facsimile:    (650) 494-0792 
  
 14.11. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be a duplicate original, but all of which taken together shall constitute one and the same agreement. 
  
 14.12. Language. This Agreement has been produced in the English language and the negotiations relating to this Agreement were conducted in
English; any translations are for working purposes only and have no influence on the interpretation of this Agreement. 
  
 14.13. Announcements. Except as otherwise expressly permitted herein or required by applicable law, all press releases and other public
announcements by either Party concerning this Agreement or its subject matter must be approved in writing by the other Party, such approval not to be unreasonably withheld or delayed, prior to their release or publication. 
  
 14.14. Governing Law. The validity, interpretation, and performance of
this Agreement shall be governed by and construed in accordance with the laws of the State of California, United States of America, without regard to its conflict or choice of laws principles. 
  

	15.	Dispute Resolution. 

  
 15.1. Disputes. The Parties agree that any dispute, controversy, question or claim concerning, arising out of, or relating to the performance,
interpretation or construction of this Agreement (“Dispute”) shall be resolved pursuant to this Section 15.1. Without in any way limiting the right of a Party to seek injunctive relief pursuant to Section 15.5 hereof, if at any time
a Dispute arises, at the request of either Party, the Parties shall meet, within twenty (20) calendar days of written notice that there is a Dispute, in San Francisco, California or confer by telephone in an effort to discuss in good faith and to
reach an amicable resolution to such Dispute. The Parties shall use all reasonable efforts to resolve any Dispute through direct discussions. If the Parties are unable to settle on a resolution agreeable to both Parties within sixty (60) calendar
days following the written notice of Dispute, the Parties shall undertake to resolve the Dispute pursuant to Section 15.2 below. 
  
 15.2. Arbitration. If the Parties are unable to resolve a Dispute pursuant to Section 15.1 above, the Dispute shall be settled, at the request of
either Party, by arbitration conducted in accordance with the Commercial Arbitration Rules (or then existing rules for commercial arbitration) of the American Arbitration Association in San Francisco, California, in the event that the request is
made by Licensee, or in Tokyo, Japan, in the event that the request is made by SFDC. The arbitration of such issues, including the determination of any amount of damages to be awarded, shall be final and binding upon the Parties, except that the
arbitrator shall not be authorized to award punitive damages with respect to any such Dispute. Neither Party shall seek punitive damages relating to any matter under or arising out of this Agreement in any other forum. Any arbitrator may be of any
nationality. The language of the arbitration shall be English. 
  
 15.3. Confidentiality of Proceedings. The dispute resolution proceedings contemplated by this Section 15 shall be as confidential and private as permitted by law. To that end, the Parties shall not disclose the existence, content or
results of any proceedings conducted in accordance with this provision, and materials prepared or submitted in connection with such proceedings shall not be admissible in any other proceeding, provided, however, that this confidentiality provision
shall not prevent a petition to vacate or enforce an arbitral award, and shall not bar disclosures required by law. 
  

 13 

 15.4. Arbitral Tribunal. All arbitral awards shall be rendered in writing and shall state the
reasons for the award. Any arbitral tribunal established hereunder shall make such decisions entirely on the basis of the substantive law specified in Section 14.14 hereof and shall not make an award on the basis of the principle of ex aequo et
bono (in justice and fairness) or otherwise. The arbitral tribunal shall not be empowered to award any form of punitive damages or any other remedy not measured by the prevailing Party’s actual damages or to act as amiable compositeur. The
arbitral tribunal may award reasonable attorneys’ fees to the prevailing Party. 
  
 15.5. Injunctive Relief. The Parties agree that, in addition to any and all other remedies that may be available under this Agreement and its Exhibits, each Party shall be entitled to seek and obtain injunctive
relief as may be granted by a court of competent jurisdiction. 
  
 15.6. Cost. Each Party shall bear its own cost of the arbitration; provided, that the costs of the arbitrators shall be borne and paid equally by both Parties. 
  
 15.7. Effect of Decision. The Parties intend that this Agreement to arbitrate in accordance with this Section 15 be
valid, binding, enforceable and irrevocable. Subject to any applicable law, the decision of any arbitration made pursuant to this Section 15 shall be final and binding on the Parties and shall be specifically enforceable in any court having
jurisdiction over the Parties. The Parties agree that any decision or award resulting from proceedings in accordance with this Section 15 shall have no preclusive effect in any other matter involving third parties. 
  
 15.8. Corrupt Practices. SFDC and Licensee agree to conform with the
United States Foreign Corrupt Practices Act and will not offer any payment or other gift or promise, or authorize the giving of anything of value, for the purpose of influencing an act or decision of an official of any government or of an employee
of any company in order to assist SFDC or Licensee in obtaining, retaining, or directing any business. 
  
 15.9. Nature of Rights. The parties agree that the rights granted to Licensee hereunder are rights in “intellectual property” within the
scope of Section 101 (or its successors) of the United States Bankruptcy Code (the “Code”). Licensee shall have the rights set forth herein with respect to the Localized Products and System Technology when and as developed or created. In
addition, Licensee, as a licensee of intellectual property rights hereunder, shall have and may fully exercise all rights available to a licensee under the Code, including, without limitation, under Section 365(n) or its successors. In the event of
a case under the Code involving Licensor, Licensee shall have the right to obtain (and SFDC or any trustee for SFDC or its assets shall, at Licensee’s written request, deliver to Licensee) a copy of all embodiments (including, without
limitation, any work in progress) of any intellectual property rights granted hereunder, including, without limitation, embodiments of any Localized Products and System Technology and any SFDC Confidential Information or any other intellectual
property necessary or desirable for Licensee to use or exploit any Localized Products and System Technology or to exercise its rights hereunder. In addition, SFDC shall take all steps reasonably requested by Licensee to perfect, exercise and enforce
its rights hereunder, including, without limitation, filings in the U.S. Copyright Office and U.S. Patent and Trademark Office, and under the Uniform Commercial Code. 
  
 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized
officers as of the date first hereinabove written. 
  
  

	 SFDC:
	 	 	 	 LICENSEE:

			
	 salesforce.com, lnc.
 a Delaware corporation
	 	 	 	 salesforce.com Japan, Ltd.
 a Japanese corporation

					
	By:	 	/s/ Andrew P. Hyde	 	 	 	By:	 	 /s/ Akira Kitamura

	 	
	 	 	 	 	

	 Print name:
	 	 Andrew P. Hyde
	 	 	 	 Print name:
	 	 Akira Kitamura

	 Title:
 Date:
	 	 Chief Financial Officer
 January 19, 2001
	 	 	 	 Title:
 Date:
	 	 President and CEO
 January 29, 2001

  

 14 

 EXHIBIT A 
  

TRADEMARKS 
  
 SFDC Trademarks: 
  
 salesforce.com 
  
 Licensee Trademarks:

  
 [none as of Effective Date] 
  

 EXHIBIT B 
  

SUPPORT SERVICES AND SERVICE LEVELS 
  
 This Exhibit describes the software support services that SFDC will provide during and following the Initial Phase and the service levels that SFDC will meet during only
the Initial Phase. 
  
 For purposes of this exhibit, “Licensed
Software” refers to any Software that is reasonably necessary and relevant for the establishment and operation of the Japan Service, regardless of the degree to which it has been Localized, if applicable. For example, “Licensed
Software” includes, (a) during the Initial Phase, any Client Software or API software for remotely modifying or accessing the Japan Service or Customer Data, and (b) following the Initial Phase, any Server Software and application software
within the System Technology, as Localized, used in hosting the Japan Service in Japan. 
  

	I.	SUPPORT SERVICES 

  

	1.	Definitions. 

  
 Unless defined otherwise herein, capitalized terms used in this Exhibit shall have the same meaning as set forth in Section 1 of the Agreement. 
  
 (a) “Error” means any failure of the Licensed Software to conform in any material respect with its published specifications.

  
 (b) “Error Correction” means either a bug fix, patch, or other
modification or addition that brings the Licensed Software into material conformity with its published performance specifications. 
  
 (c) “Priority A Error” means an Error which renders the Licensed Software inoperative or causes a complete failure of the Licensed Software. 
  
 (d) “Priority B Error” means an Error which substantially degrades the performance
of the Licensed Software or materially restricts Licensee’s or a Customer’s use of the Licensed Software. 
  
 (e) “Priority C Error” means an Error which causes only a minor impact on Licensee’s or a Customer’s use of the Licensed Software. 
  
 (f) “Support Services” means SFDC’s support services as described in this
Exhibit B. 
  
 (g) “Update” means any new commercially available
or deployable version of the Licensed Software, which may include Error Corrections, enhancements or other modifications, issued by SFDC from time to time to its licensees or service resellers or used by SFDC in the SFDC Service. 
  

	2.	Licensee Obligations. 

  
 Licensee or its Distributors will provide first level support to customers with respect to the Licensed Software. Such support is intended to be the “front
line” for customer support and information. SFDC will provide to Licensee training, documentation, and materials with respect to the provision of such technical support as provided in this Agreement. Licensee shall assist SFDC in information
gathering so that SFDC can perform the problem identification and isolation function with respect to reported Errors. All Error reports which the Licensee or Distributor support personnel cannot handle will be referred to SFDC by Licensee for
handling as described in Section 3 of this Exhibit B. 
  

	3.	SFDC Support. 

  
 (a) Scope. As further described herein, SFDC’s Support Services consist of (i) Error Correction of Errors reported by Licensee that Licensee support personnel are unable to resolve using its first level
support, and (ii) periodic delivery of Error Corrections and Updates when SFDC deploys them in the SFDC Service. SFDC’s Support Services will be available to Licensee 24 hours per day, 7 days per week, 365 days per year, to the extent
practicable. 
  

 (b) Procedure. 
  
 (i) Report of Error. In reporting any Error, the Licensee support personnel making such a report will describe to the SFDC support personnel the
Error in reasonable detail and the circumstances under which the Error occurred or is occurring and will initially classify the Error as a Priority A, B or C Error. SFDC, after careful review and consultation with Licensee, reserves the right to
reclassify the Priority of the Error if reasonable in light of the facts and circumstances. 
  
 (ii) Efforts Required. SFDC shall exercise commercially reasonable efforts to correct any Error reported by Licensee’s support personnel in accordance with the priority level assigned to such Error by
Licensee. 
  
 A. In the event of Priority A
Errors, SFDC will within one hour of Licensee’s report commence verification of the Error and, upon verification, will initiate work to provide Licensee with an Error Correction. SFDC will work diligently to verify the Error and, once an Error
has been verified, and until an Error Correction has been provided to Licensee, shall use commercially reasonable, diligent efforts to provide a workaround for the Error as soon as reasonably practicable. SFDC will provide Licensee with periodic
reports (no less frequently than once every four hours) on the status of the Error Correction. 
  
 B. In the event of Priority B Errors, SFDC shall within four hours of Licensee’s report, commence verification of the Error and shall
initiate work to provide Licensee with an Error Correction. Until an Error Correction has been provided to Licensee, SFDC shall use commercially reasonable, diligent efforts to provide a workaround for the Error. SFDC shall provide Licensee with
periodic reports (no less frequently than once every six hours) on the status of the Error Correction. 
  
 C. In the event of Priority C Errors, SFDC shall within one week of Licensee’s report, commence verification of the Error and will
initiate work to provide Licensee with an Error Correction. SFDC shall use commercially reasonable efforts to provide a workaround for the Error. SFDC will provide Licensee with periodic reports (no less frequently than once every week) on the
status of the Error Correction. 
  

	II.	SERVICE LEVELS DURING INITIAL PHASE 

  
 Service levels (e.g., uptime percentage) shall be mutually agreed upon by the Parties within ninety (90) days of the Effective Date and shall be no less favorable than
those offered or provided to any SFDC customer or licensee. Such levels shall include appropriate penalties (e.g., reductions in Licensee payments) for periods when the service levels fail to meet the agreed levels. 
  

 AMENDMENT #1 TO LICENSE AGREEMENT 
  
 This Amendment #1 is entered into this 28th day of February, 2001 by and between salesforce.com, Inc., a Delaware corporation (“SFDC”) and salesforce.com Japan, Ltd., a Japanese
corporation (“Licensee”). 
  
 WHEREAS, pursuant
to a joint venture agreement dated as of December 7,2000 (the “JV Agreement”), SFDC and Licensee entered into a license dated as of January 19, 2001 (the “License Agreement”). 
  
 WHEREAS, SFDC and Licensee desire to amend the License Agreement to better
reflect the agreement by and between the parties. 
  
 NOW
THEREFORE, SFDC and Licensee agree to the following amendments to the License Agreement: 
  

	1.	Section 4.4 is replaced in its entirety with the following: 

  
 Right of First Refusal. Licensee hereby grants to SFDC a right of first refusal to license, for use outside the Territory and not in connection
with products or services targeted primarily at Customers or the Japanese market, any intellectual property, and associated Intellectual Property Rights, developed and owned by Licensee, including without limitation, patents, trademarks and
know-how, except to the extent Licensee is prevented from granting such rights due to a pre-existing binding obligation to a third party governing such development (“Future IP”). Within twenty (20) days of receipt of written
notice from Licensee describing any such Future IP, SFDC will notify Licensee of whether it is interested in pursuing negotiations to license such Future IP. If SFDC notifies Licensee of such interest, the Parties agree to enter into
arm’s-length negotiations to determine the terms and conditions of such license. If the Parties are unable to reach agreement on such terms and conditions within sixty (60) days of commencing negotiations, or if SFDC fails to notify Licensee of
its interest in pursuing negotiations within the notice period, Licensee will thereafter have the right to offer the Future IP to third parties without further obligation to SFDC. 
  

	2.	Section 9.6 is replaced in its entirety with the following: 

  
 Transition Period. For a period of eighteen (18) months following the date of termination notice (“Transition Period”; the Parties
shall cooperate in good faith to permit Customers to smoothly transition with minimum disruption from the Japan Service offered by Licensee under this Agreement to a substitute service. Such efforts shall include, without limitation, the following:
(i) subject to the following Section 9.6(B), Licensee will deliver a notice (“Notice”) to then-current Customers and Distributors under contract with Licensee informing them that the Japan Service will terminate no later than the
end of the Transition Period; (ii) all licenses from one Party to the other Party will continue in effect during the Transition Period in accordance with their terms to permit the Parties to exercise their respective rights and perform their
respective obligations during such period; (iii) Licensee may continue to provide the Japan Service to then-existing Customers during the Transition Period; (iv) SFDC will continue to provide such support, hosting and other services necessary to
enable Licensee to continue to provide the Japan Service to existing Customers during the Transition Period; (v) Licensee will continue to pay to SFDC the percent of Net Revenues received with respect to the Transition Period in accordance with
Section 8; (vi) Licensee may continue to use “salesforce.com” in its corporate name but will take such steps as are necessary to remove such word from the registered corporate name of Licensee by the end of the Transition Period; and (vii)
all Customer licenses governing use of the Client Programs and User Documentation will survive in accordance with their terms. In addition, in the event that this Agreement is terminated: 
  
 (A) by SFDC pursuant to Section 9.2, then the Notice will also inform Customers and Distributors of the availability of a
comparable substitute service specified by SFDC; or 
  

 (B) by Licensee pursuant to Section 9.2, then (i) SFDC shall deliver, to the extent not already
delivered, all System Technology, any major or minor upgrades, updates, fixes, modifications, or enhancements to the System Technology, and all Localizations of the foregoing (and Licensee shall pay SFDC’s reasonable out-of-pocket costs, if
any, incurred in completing such delivery); (ii) the Transition Period shall become perpetual (i.e. not limited to eighteen (18) months), provided that Licensee may terminate the Transition Period by written notice to SFDC and that in no event
shall the Transition Period continue for more than eighteen (18) months beyond the effective termination date of the JV Agreement, and (iii) notwithstanding any of the foregoing provisions of this Section 9.6, Licensee shall have no obligation
to deliver a Notice to Customers and Distributors. 
  
 Except as
specifically amended herein, all other terms and conditions of the License Agreement shall remain in full force and effect. 
  
 IN WITNESS WHEREOF, the parties have caused this Amendment #1 to be executed by their respective duly authorized officers. 
  

	 SFDC:
	 	 	 	 LICENSEE:

			
	 salesforce.com, Inc.
 a Delaware corporation
	 	 	 	 salesforce.com Japan, Ltd.
 a Japanese corporation

					
	 By:
	 	 /s/ Andrew P. Hyde
	 	 	 	 By:
	 	 /s/ Akira Kitamura

	 	
	 	 	 	 	

	 Name:
	 	 Andrew P. Hyde
	 	 	 	 Name:
	 	 Akira Kitamura

	 Title:
	 	 Senior Vice President, Chief Financial Officer
	 	 	 	 Title:
	 	 President and CEO

	 Date:
	 	 March 1, 2001
	 	 	 	 Date:
	 	 February 28, 2001

  

 2

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