Document:

Exhibit

10.41

 

 

September 23, 2002

 

Alex Kormushoff

137 North Clay Street

Hinsdale, IL  60521

 

Dear Alex:

 

BroadVision is pleased to obtain your acceptance of the position of

Senior Vice President, Worldwide Professional Services.   Pehong, Warren, Jim and I are especially

pleased to have you on the team.  The

following outlines the terms of our employment offer to you.  Please note that your employment at

BroadVision is contingent upon successful completion of a pre-employment

background screen.

 

As a SVP reporting directly to me, you will work from our facility in

Itasca.

 

Your starting salary will be $16,666 per month, paid on a semi-monthly basis, which would be an

annualized rate of $200,000 per year. You are also eligible to receive a bonus of 45% of your

base salary once the Company meets the sustained profitability threshold, and

you have met   individual performance

targets.  Your signing bonus will be

$25,000 to be paid out over the next four quarters.

 

In addition to the above, you will be

recommended to a grant of an

option to purchase 65,000 post split shares of BroadVision

common stock at a fair market value to be determined at the next meeting of the

option committee.  The options

vest over four years:  twenty-five percent (25%) of the shares

will vest after the first year of

employment and the balance over the remaining three years on a monthly basis

(2.083% of the original

grant amount per month).

 

You will be eligible for the standard BroadVision employee benefits

which include: medical, dental, vision, and prescription package, long-term

disability insurance, group life insurance, participation in our 401(k) Savings

Plan, participation in the Employee Stock Purchase Plan (ESPP), and two weeks

paid vacation your first year of employment (vacation is based on length of

service).

 

 

	

   

  	

   

  
	

  Candidate’s Initial

  

 

 

Alex Kormushoff

September 23, 2002

 

While BroadVision pays for the majority of your medical insurance,

should you choose to participate in the plan, your financial contribution will

be 10-20% of your monthly insurance premium, depending on your benefit

selection. Benefits start the first of the month after your date of hire.  You should also note that BroadVision may

modify salaries and benefits from time to time as it deems necessary.

 

As a BroadVision employee, you will be required to sign an

acknowledgment that you have read and understand the company rules as described

in the company handbook and intend to abide by these rules and

regulations.  You will be expected to

sign and comply with the attached Proprietary Information and Inventions

Agreement.  You will also be required to

submit an I-9 form and satisfactory documentation regarding your identification

and right to work in the United States no later than three (3) days after your

employment begins.

 

As an employee, you may terminate employment at any time for any reason

whatsoever with notice to BroadVision. 

We request that in the event of resignation, you give the company at

least two weeks notice.  Similarly,

BroadVision may terminate your employment at any time for any reason whatsoever

with or without cause or advance notice. 

This mutual termination of employment arrangement will supersede all

previous written and oral communication with you and can only be modified by

written agreement signed by all parties.

 

If you wish to accept employment at BroadVision under the terms set out

above, please sign and date this letter, and return it to Human Resources by

September 30.

 

I look forward to your favorable reply and to a productive and exciting

working relationship.

 

Sincerely,

 

 

Andrew Nash

Chief Operating Officer

 

 

	

   

  	

  /s/ Alex Kormushoff

  	

   

  	

   

  
	

   

  	

  Approved and Accepted

  	

   

  	

  Date

  	

   

  
	

   

  
	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Candidate’s Start Date

  	

   

  	

  Candidate Social Security NumberExhibit 10.42

 

FOURTH MODIFICATION TO AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

 

This Fourth

Modification to Amended and Restated Loan and Security Agreement (the

“Modification”) is entered into as of January 21, 2004 by and between

Broadvision, Inc., a Delaware corporation (“Borrower”), and Silicon Valley

Bank, a California-chartered bank (“Bank”).

 

1.                                       DESCRIPTION

OF EXISTING INDEBTEDNESS.  Among

other indebtedness which may be owing by Borrower to Bank, Borrower is indebted

to Bank pursuant to that certain Amended and Restated Loan and Security

Agreement dated as of March 31, 2002, as amended by that certain Modification

to Amended and Restated Loan and Security Agreement dated as of

February 28, 2003, that certain Second Modification to Amended and

Restated Loan and Security Agreement dated as of June 30, 2003, and that

certain Third Modification to Amended and Restated Loan and Security Agreement

dated as of June 30, 2003 (as may be further amended from time to time,

the “Loan Agreement”).  The Loan

Agreement provides for, among other things, a Committed Revolving Line in the

principal amount of Twenty-Seven Million Two Hundred Fifty Thousand Dollars

($27,250,000). Capitalized terms used but not otherwise defined herein shall

have the respective meanings accorded to them in the Loan Agreement; provided

that hereinafter all indebtedness owing by Borrower to Bank under the Loan

Agreement shall be referred to as the “Indebtedness.”

 

2.                                       DESCRIPTION

OF COLLATERAL.  Repayment of the

Indebtedness is secured by the Collateral as described in the Loan Agreement

and herein.  Hereinafter, all documents

securing repayment of the Indebtedness, together with all other documents

evidencing or securing the Indebtedness, shall be referred to as the “Existing

Loan Documents.”

 

3.                                       DESCRIPTION

OF CHANGES TO TERMS OF EXISTING LOAN DOCUMENTS.

 

3.1                                 Deposits.

 

(a)  Bank hereby waives

Borrower’s failure to comply with the deposit requirement set forth in Section

6.6 of the Loan Agreement for the quarter ended December 31, 2003.  The foregoing waiver is effective solely as

to this covenant for the quarter ended December 31, 2003 and shall not

constitute a continuing waiver by Bank of its rights under Section 6.6 of the

Loan Agreement or elsewhere in the Existing Loan Documents.  Without limiting the foregoing, Bank’s waiver

in this Section 3.1 shall not serve as a waiver of Borrower’s failure to comply

with the provisions of said Section 6.6 as of any subsequent date.

 

(b).  Effective as of January 1,

2004, Section 6.6 of the Loan Agreement is hereby amended to read in full as

follows:

 

6.6                                 Deposits.

 

Borrower will at all times, until all Obligations are paid in full,

maintain in accounts with Bank and its Affiliates an amount equal to at least

$30,000,000 of Borrower’s Unrestricted Cash, net of all borrowings under this

Agreement.  In addition, Borrower will

at all times maintain an operating account with Bank.

 

3.2                                 Financial

Covenants.  Bank hereby waives

Borrower’s failure to comply with the financial covenant set forth in Section

6.7(a)(ii) of the Loan Agreement for the quarter ended December 31,

2003.  The foregoing waiver is effective

solely as to this covenant for the quarter ended December 31, 2003 and shall

not constitute a continuing waiver by Bank of its rights under Section

6.7(a)(ii) of the Loan Agreement or elsewhere in the Existing Loan

Documents.  Without limiting the

foregoing, Bank’s waiver in this Section 3.2 shall not serve as a waiver of

Borrower’s failure to comply with the provisions of said Section 6.7(a)(ii) as

of the end of any future quarter.

 

3.3                                 Amended

Exhibit C.  Exhibit C of the

Loan Agreement is hereby amended to read in full as attached hereto as

Attachment No. 1.

 

 

4.                                       CONSISTENT

CHANGES.  The Existing Loan

Documents are hereby amended wherever necessary to reflect the changes

described in Section 3 hereof.

 

5.                                       NO

DEFENSES OF BORROWER.  Borrower

agrees that, as of the date hereof, it has no defenses against the obligations

to pay any amounts of the Indebtedness.

 

6.                                       CONTINUING

VALIDITY.  Borrower understands and

agrees that in modifying the Existing Loan Documents, Bank is relying upon

Borrower’s representations, warranties and agreements, all as set forth in the

Existing Loan Documents.  Except as

expressly modified pursuant to this Fourth Modification, the terms of the

Existing Loan Documents remain unchanged and in full force and effect, and

hereafter the Existing Loan Documents shall include the terms of this Fourth

Modification as if set forth therein in full. 

Bank’s agreement to modifications to the Existing Loan Documents

pursuant to this Fourth Modification shall in no way obligate Bank to make any

future modifications to the Existing Loan Documents.  Nothing in this Fourth Modification shall constitute a

satisfaction of the Indebtedness or any portion thereof.  It is the intention of Bank and Borrower to

retain as liable parties all makers and endorsers of Existing Loan Documents,

unless the party is expressly released by Bank in writing, and no maker, endorser

or guarantor will be released by virtue of this Fourth Modification.  The terms of this paragraph apply not only

to this Fourth Modification, but also to all subsequent loan modification

agreements.

 

7.                                       CONDITION

PRECEDENT TO EFFECTIVENESS.  Before

this Fourth Modification, and Bank’s and Borrower’s respective rights and

obligations hereunder, shall be effective Borrower shall have paid to Bank all

Bank Expenses incurred by Bank in connection with its entering into this Fourth

Modification.

 

 

IN WITNESS

WHEREOF, each of the parties hereto has caused its duly authorized

representative to execute and deliver this Fourth Modification as of the date

first set forth above.

 

	

  BORROWER:

  	

  BANK:

  
	

   

  	

   

  
	

  BROADVISION, INC.,

  	

  SILICON VALLEY

  BANK,

  
	

  a Delaware

  corporation

  	

  a

  California-chartered bank

  
	

   

  
	

  By:

  	

  /s/ William E. Meyer

  	

   

  	

  By:

  	

  /s/ Armand Zand

  	

   

  
	

   

  
	

  Name:William E. Meyer

  	

   

  	

  Name:

  	

  Armand Zand

  
	

   

  
	

  Title:  Chief Financial Officer

  	

   

  	

  Title:

  	

  Vice President

  
									

 

2

 

ATTACHMENT NO. 1

 

REVISED

FORM OF

 

EXHIBIT

C

 

COMPLIANCE CERTIFICATE

 

	

  TO:

  	

  SILICON VALLEY BANK

  
	

  FROM:

  	

  BROADVISION, INC.

  
	

  DATED:

  	

   

  	

   

  

 

The

undersigned authorized officer (the “Officer”) of Broadvision, Inc.

(“Borrower”) certifies that, under the terms and conditions of the Amended and

Restated Loan and Security Agreement dated as of March 31, 2002 between

Borrower and Bank (as amended from time to time, the “Agreement”):

(i) Borrower is in complete compliance for the period ending on the date

first set forth above with all required covenants except as noted below and

(ii) all representations and warranties in the Agreement are true and

correct in all material respects on this date. 

In addition, the Officer certifies that Borrower and each Subsidiary (a)

has timely filed all required tax returns and paid, or made adequate provision

to pay, all material taxes, except those being contested in good faith with

adequate reserves under Generally Accepted Accounting Principles (GAAP) and (b)

does not have any legal actions pending or threatened against Borrower or any

Subsidiary which Borrower has not previously notified in writing to Bank.  Attached are the required documents

supporting the certification.  The

Officer certifies that these are prepared in accordance with GAAP consistently

applied from one period to the next except as explained in an accompanying

letter or footnotes.  The Officer

acknowledges that no borrowings may be requested at any time or date of

determination that Borrower is not in compliance with any of the terms of the

Agreement, and that compliance is determined not just at the date this

certificate is delivered.

 

Please indicate

compliance status by circling Yes/No under “Complies” column.

 

	

  Reporting Covenants

  	

   

  	

  Required

  	

   

  	

  Complies

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  1.  Interim financial

  statements + CC

  	

   

  	

  Quarterly within 45 days

  	

   

  	

  Yes

  	

   

  	

  No

  
	

  2.  Annual audited financial

  statements + CC

  	

   

  	

  Within 120 days of FYE

  	

   

  	

  Yes

  	

   

  	

  No

  
	

  3.  Schedule of A/R + A/P

  Agings

  	

   

  	

  Quarterly within 45 days

  	

   

  	

  Yes

  	

   

  	

  No

  
	

  4.  Deferred Revenue Schedule

  	

   

  	

  Quarterly within 45 days

  	

   

  	

  Yes

  	

   

  	

  No

  

 

	

  Financial Covenants

  	

   

  	

  Required

  	

   

  	

  Actual

  	

   

  	

  Complies

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  1.  Minimum unrestricted

  balance sheet cash

  	

   

  	

  (i)

  	

  $55,000,000 through 9/30/03

  	

   

  	

   

  	

   

  	

  Yes

  	

   

  	

  No

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (ii)

  	

  $50,000.00 through 12/31/03

  	

   

  	

   

  	

   

  	

  Yes

  	

   

  	

  No

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (iii)

  	

  $45,000,000 thereafter

  	

   

  	

   

  	

   

  	

  Yes

  	

   

  	

  No

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  2.  Minimum Net Income

  	

   

  	

  (i)

  	

  <$500,000> for quarter ending 6/30/03

  	

   

  	

   

  	

   

  	

  Yes

  	

   

  	

  No

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (ii)

  	

  $1.00 for each quarter thereafter

  	

   

  	

   

  	

   

  	

  Yes

  	

   

  	

  No

  

 

	

  Deposit Covenant

  	

   

  	

  Required

  	

   

  	

  Actual

  	

   

  	

  Complies

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Deposits with Bank and its

  Affiliates

  	

   

  	

  An amount equal to at least

  $30,000,000 of Borrower’s Unrestricted Cash, net of all borrowings under the

  Agreement

  	

   

  	

   

  	

   

  	

  Yes

  	

   

  	

  No

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Have there been updates to Borrower’s intellectual property?

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Yes

  	

   

  	

  No

  

 

 

 

 

Comments Regarding

Exceptions: 

See Attached.

 

	

   

  	

   

  	

  BANK USE ONLY

  
	

   

  	

   

  	

  Received by:

  	

   

  
	

   

  	

   

  	

  authorized signer

  
	

  Sincerely,

  	

   

  	

  Date:

  	

   

  
	

   

  	

   

  	

   

  
	

  Broadvision, Inc.,

  	

   

  	

  Verified:

  	

   

  
	

  a Delaware corporation

  	

   

  	

  authorized signer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Signature

  	

   

  	

  Date:

  	

   

  
	

   

  	

   

  	

   

  
	

  Title

  	

   

  	

  Compliance Status:

  	

  Yes

  	

  No

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Date

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