Document:

Registrant's Revised Bonus Plan

 Exhibit 10.12 
  
 ARIBA BONUS PLAN 
  
 NORTH AMERICA 
  
 1. Effective Date and Term. This Plan was adopted by the Compensation
Committee (the “Committee”) of the Board of Directors of Ariba, Inc. (the “Company”) effective October 1, 2004, and will continue to apply until it is amended or terminated by the Committee. 
  
 2. Administration. The Committee administers the Plan and adopts rules
and regulations to implement the Plan. The decisions of the Committee are final and binding on all parties who have an interest in the Plan. 
  
 3. Eligibility. Participation in the Plan is limited to non-commercial employees in good standing who are located in North America. Participation
in this Plan is effective on the day the participant starts in the bonus-eligible job. Participants must be employed in a bonus-eligible position before the first day of the last month of the quarter to be eligible to participate in the Plan for
that quarter. Bonus payments will be pro-rated for participants who become eligible after the start of a quarter or for employees on a leave of absence or sabbatical for all or part of the quarter. A participant may be removed from the Plan at any
time and for any reason, at the Company’s discretion. 
  
 4.
Determination of Amounts. The Plan may provide a quarterly cash bonus that is paid based on the achievement of pre-determined Company performance objectives and individual management objectives. The amount of each participant’s quarterly
bonus is determined as follows: 
  
 (a) An annual
target bonus amount is assigned to the participant at the time of his or her hiring. The annual target bonus amount may be modified from time to time thereafter. The quarterly target bonus amount is equal to 25% of the annual target bonus amount.

  
 (b) In the case of most participants, 50% of
the actual quarterly bonus is determined on the basis of the Company’s quarterly revenue score and 50% is determined on the basis of the Company’s quarterly operating profit score. (The exception is described below.) 
  
 (c) “Operating profit” means after-tax income
excluding (i) integration-related expense, (ii) amortization of acquired core technology and in-process R&D, (iii) amortization of goodwill and intangibles and (iv) amortization of stock-based compensation. 
  
 (d) As soon as reasonably practicable after the beginning of
a fiscal year, the Committee determines for each quarter in that year the amounts of revenue and operating profit that will be required for revenue and operating profit 

 
scores of 0.50, 1.00 and 1.50. If the amount of revenue or operating profit is less than the amount required for a 0.50 score, the score will be zero. If the
amount of revenue or operating profit is greater than the amount required for a 1.50 score, the score will be 1.50. If the amount of revenue or operating profit falls between the amounts required for a 0.50 score and a 1.00 score, or between the
amounts required for a 1.00 score and a 1.50 score, then straight-line interpolation will be used. 
  
 (e) When the actual amount of revenue for a quarter has been determined, the revenue score is calculated. Likewise, when the actual amount
of operating profit for a quarter has been determined, the operating profit score is calculated. Then the two scores are averaged. 
  
 (f) The average score for the first two quarters of the fiscal year will in no event exceed 1.20. 
  
 (g) The average of the two scores is multiplied by each
participant’s quarterly target bonus amount. The result is the participant’s actual quarterly bonus. 
  
 (h) All calculations for the second and subsequent quarters of a fiscal year are performed on a cumulative year-to-date basis. The
quarterly bonus calculated on that basis is then reduced by the quarterly bonus or bonuses already paid for the same fiscal year. 
  
 (i) A participant’s bonus for each quarter is multiplied by an individual-performance factor that may be 0% or range from 50% to
150%. However, in the case of an executive officer, as defined for purposes of section 16 of the Securities Exchange Act of 1934 (an “Executive Officer”), only the bonus for the fourth quarter (calculated on a cumulative year-to-date
basis) is multiplied by the individual-performance factor. The individual-performance factor is based on the attainment of predetermined management objectives and may include subjective elements. Each participant’s individual-performance factor
is determined by management, except that the individual-performance factor of an Executive Officer is determined by the Committee. If an Executive Officer’s cumulative bonus amount for a fiscal year (as adjusted by his or her
individual-performance factor) is less than the sum of the quarterly bonuses already paid to him or her for the same fiscal year, the participant will not be required to refund the quarterly bonuses already paid. 
  
 (j) In the case of certain Executive Officers, the
Company’s quarterly bookings score replaces all or part of the quarterly revenue score. These Executive Officers will be designated by the Committee as soon as reasonably practicable after the beginning of the fiscal year. At that time, the
Committee also determines for each quarter in that year the amount of bookings that will be required for bookings scores of 0.50, 1.00, 1.50 and 2.00. If the amount of bookings is less than the amount required for a 0.50 score, the score will be
zero. 

  

 2 

 
If the amount of bookings is greater than the amount required for a 2.00 score, the score will be 2.00. If the amount of bookings falls between the amounts
required for one of the foregoing scores, then straight-line interpolation will be used. 
  
 (k) The Committee may adjust the amount of the Company’s quarterly revenue or quarterly operating profit, or both, to exclude
extraordinary expenses or benefits. 
  
 (l) If
the average score applicable to a participant for a fiscal year is less than 0.50, then the Committee (in the case of Executive Officers) or the Company’s Chief Executive Officer (in the case of all other participants) may approve a bonus
payment for the fourth quarter of that year (calculated on a cumulative year-to-date basis) of up to 50% of the participant’s target bonus amount for that year, based on an assessment of the participant’s individual performance.

  
 5. Payment of Bonuses. Payment of the quarterly cash
bonus (if any) is targeted for the end of the third semi-monthly pay period following the end of a given quarter. Adjustments to this payment schedule may be made as business conditions require. 
  
 6. Employment Requirement. Unless a Severance Agreement between a
participant and the Company provides otherwise, the participant must be employed by the Company at the time of the bonus payment to receive the quarterly cash bonus. 
  
 7. Modification or Termination of the Plan. The Committee reserves the right to modify, suspend or terminate this
Plan at any time. Should an acquisition or significant business initiative change the operating plan, this Plan may be modified and a new plan will go into effect at the start of the quarter following this event. 
  
 8. Benefits Unfunded. No amounts awarded or accrued under this Plan
will be funded, set aside or otherwise segregated prior to payment. The obligation to pay the bonuses awarded hereunder will at all times be an unfunded and unsecured obligation of the Company. Plan participants will have the status of general
creditors and must look solely to the general assets of the Company for the payment of their bonus awards. 
  
 9. Benefits Nontransferable. No Plan participant will have the right to alienate, pledge or encumber his or her interest in this Plan, and such
interest will not (to the extent permitted by law) be subject in any way to the claims of the participant’s creditors or to attachment, execution or other process of law. 
  
 10. No Employment Rights. No action of the Company in establishing the Plan, no action taken under the Plan by the
Committee and no provision of the Plan itself will be construed to grant any person the right to remain in the employ of the Company or its subsidiaries for any period of specific duration. Rather, each employee is employed “at will,”
which means that either the employee or the Company may terminate the employment relationship at any time and for any reason, with or without cause. 
  

 3Severance Agreement by and between Michael Schmitt and Registrant

 Exhibit 10.13 
  
 SEVERANCE AGREEMENT 
  
 THIS AGREEMENT is entered into as of November 4, 2004, by and between
MICHAEL SCHMITT(the “Employee”) and ARIBA, INC., a Delaware corporation (including any successor that becomes bound by this Agreement, the
“Company”). 
  
 1. TERMINATION BENEFITS WITHIN 12
MONTHS AFTER A CHANGE IN CONTROL. 
  
 (a) Qualifying
Terminations. This Section 1 shall apply if: 
  
 (i) The Company terminates the Employee’s employment with the Company for a reason other than Cause or Permanent Disability within 12 months after a Change in Control (as such terms are defined below); or 
  
 (ii) The Employee resigns for Good Reason (as defined below)
within 12 months after a Change in Control. 
  
 (b) Severance
Payment. If this Section 1 applies, then the Employee shall be entitled to receive a severance payment from the Company. The amount of such payment shall be equal to 150% of the sum of (i) the Employee’s base salary at the annual rate in
effect when his employment terminates plus (ii) the Employee’s annual target bonus for the fiscal year in which his employment terminates. Such payment shall be made in a lump sum in cash on the date the Employee’s employment terminates
under Subsection (a)(i) above or not later than the date three business days after his employment terminates under Subsection (a)(ii) above. 
  
 (c) Acceleration of Vesting. If this Section 1 applies, then all of the Equity held by the Employee at the time of the termination of his
employment shall become fully and unconditionally vested, fully exercisable and fully transferable (except for transfer restrictions imposed by law). 
  
 (d) Extension of Option Exercise Period. If this Section 1 applies, then all of the Options held by the Employee at the time of the termination of
his employment shall remain exercisable until the earlier of (i) the date 18 months after the termination of the Employee’s employment or (ii) the date such Options would have expired if the Employee’s employment had not terminated.

  
 (e) Definition of “Board.” For purposes of
this Agreement, “Board” shall mean the Board of Directors of the Company. 
  
 (f) Definition of “Cause.” For purposes of this Section 1 only, “Cause” shall mean any intentional misconduct that materially injures the Company and its subsidiaries, taken as a
whole, or has a material adverse effect on the business or affairs of the Company and its subsidiaries, taken as a whole. 

 (g) Definition of “Change in Control.” For purposes of this Section 1 only, a
“Change in Control” shall be determined as follows: 
  
 (i) The consummation of a merger or consolidation of the Company, or any subsidiary of the Company, with or into another entity or any other corporate reorganization, if immediately after such transaction the
Ownership Percentage (as defined below) of persons who were not stockholders of the Company immediately before such transaction is 30% or more; provided, however, that if such percentage is less than 50%, a majority of the Incumbent Directors may
determine prior to the consummation of such transaction that a Change of Control has not occurred after considering all relevant factors; 
  
 (ii) The sale, transfer or other disposition of all or substantially all of the Company’s assets; 
  
 (iii) A change in the composition of the Board, as a result
of which fewer than two-thirds of the incumbent directors are directors who either (A) had been directors of the Company on the date hereof (the “original directors”) or (B) were elected, or nominated for election, to the Board with the
approval of at least a majority of the sum of (I) the original directors who were still in office at the time of the election or nomination and (II) the directors whose election or nomination was previously so approved (collectively, the
“Incumbent Directors”); or 
  
 (iv) Any
transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), directly or indirectly, of securities of the Company
representing at least 25% of the total voting power represented by the Company’s then outstanding voting securities. 
  
 For purposes of this Subsection (g), the term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall
exclude (A) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a parent or subsidiary of the Company and (B) a corporation owned directly or indirectly by the stockholders of the Company in
substantially the same proportions as their ownership of the common stock of the Company. 
  
 For purposes of Paragraph (i) above, the term “Ownership Percentage” means the percentage of the voting power of the outstanding securities of (A) the continuing or surviving entity and (B) any direct or
indirect parent corporation of such continuing or surviving entity. 
  
 For
purposes of the proviso in Paragraph (i) above, the factors to be considered by the Board in determining that a Change in Control has not occurred shall include, without limitation: 
  
 (A) The Ownership Percentage; 
  
 (B) Whether there is a change in the composition of the
Board of Directors of the Company or the continuing or surviving entity; 
  

 2 

 (C) Whether there is a change in the management of the Company or the continuing or
surviving entity; 
  
 (D) The extent of the
anticipated change in the business, operations or assets of the Company or the continuing or surviving entity; 
  
 (E) The level of severance benefits available to comparable management at any entity other than the Company resulting from any transaction
specified in Paragraphs (i) through (iv) above; and 
  
 (F) Whether treating the transaction as a Change in Control for purposes of this Agreement is necessary or desirable for purposes of achieving the business objectives of the transaction specified in Paragraphs (i) through (iv) above.

  
 A transaction shall not constitute a Change in Control if its sole purpose is
to change the State of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
  
 (h) Definition of “Equity.” For purposes of this
Agreement, “Equity” shall mean (i) all shares of the capital stock of the Company (“Stock”), (ii) all options and other rights to purchase shares of Stock, (iii) all stock units, performance units or phantom shares whose value is
measured by the value of shares of Stock and (iv) all stock appreciation rights whose value is measured by increases in the value of shares of Stock. 
  
 (i) Definition of “Good Reason.” For purposes of this Section 1 only, “Good Reason” shall mean (i) a reduction in the
Employee’s level of compensation (including base salary, fringe benefits and participation in bonus or incentive programs) or (ii) a relocation of his place of employment by more than 50 miles, provided and only if such reduction or relocation
is effected by the Company without his consent. 
  
 (j)
Definition of “Options.” For purposes of this Agreement, “Options” shall mean (i) all options and other rights to purchase shares of Stock and (ii) all stock appreciation rights whose value is measured by increases
in the value of shares of Stock. 
  
 (k) Definition of
“Permanent Disability.” For purposes of this Agreement, “Permanent Disability” shall mean that the Employee, at the time notice is given, has failed to perform the duties of his position with the Company for a period
of not less than 180 consecutive days (or such longer period as may be required by law) as the result of his incapacity due to physical or mental injury, disability or illness. 
  
 2. TERMINATION BENEFITS BEFORE, OR MORE THAN 12 MONTHS AFTER, A CHANGE IN CONTROL. 
  
 (a) Qualifying Terminations. This Section 2 shall only apply if:

  
 (i) Section 1 does not apply; 
  

 3 

 (ii) The Company terminates the Employee’s employment with the Company for a reason
other than Cause or Permanent Disability; and 
  
 (iii) Either (A) the Employee and the Company have executed a reciprocal general release, in the form attached hereto as Exhibit A, of all known and unknown claims that they may then have against each other (the “Release”)
and have agreed not to prosecute any legal action or other proceeding based on such claims or (B) the Company (at its sole discretion) has determined to waive the requirement of a reciprocal general release. 
  
 The foregoing notwithstanding, the Employee and the Company shall not be required to release
any claims that they may have against each other arising under (i) the Indemnification Agreement dated June 8, 2001, between the Employee and the Company or (ii) any rights to indemnification, advancement of expenses or repayment arising under the
Company’s Amended and Restated Certificate of Incorporation, the Company’s Amended and Restated Bylaws or the indemnification provisions of applicable State statutes, in each case as currently in effect or as subsequently amended.

  
 (b) Severance Pay. If this Section 2 applies, then the
Employee shall be entitled to receive severance payments from the Company for a period of 12 months following the termination of his employment (the “Continuation Period”). Such severance payments shall be made in accordance with the
Company’s standard payroll procedures. The annual rate of such severance payments shall be equal to the sum of (i) the Employee’s base salary at the annual rate in effect when his employment terminates plus (ii) the Employee’s annual
target bonus for the fiscal year in which his employment terminates. In addition to any other remedies that may be available to the Company, severance payments shall cease immediately if the Employee fails to comply with the covenants set forth in
Section 3 below. 
  
 (c) Acceleration of Vesting. If this
Section 2 applies, then: 
  
 (i) The vested
portion of all restricted shares of Stock held by the Employee at the time of the termination of his employment shall at all times thereafter be determined by adding 12 months to his actual period of service with the Company. 
  
 (ii) The Employee shall continue to vest in the Equity held
by him at the time of the termination of his employment (other than restricted shares of Stock) during the Continuation Period, subject to his compliance with the covenants set forth in Section 3 below. The monthly rate of vesting during the
Continuation Period shall be the same as prior to the termination of the Employee’s employment. 
  

 4 

 (d) Extension of Option Exercise Period. If this Section 2 applies, and if the termination of the
Employee’s employment is effective after December 31, 2005, then all of the Options held by the Employee at the time of the termination of his employment shall remain exercisable until the earlier of: 
  
 (i) The later of (A) the date 12 months after the
termination of the Employee’s employment or (B) with respect to any increment of such Options that becomes exercisable later than nine months after the termination of the Employee’s employment, the date three months after such increment
becomes exercisable; or 
  
 (ii) The date such
Options would have expired if the Employee’s employment had not terminated. 
  
 (e) Definition of “Cause.” For purposes of this Section 2 only, “Cause” shall mean: 
  
 (i) Any gross negligence or intentional misconduct that materially injures the Company and its subsidiaries, taken as a whole, or has a
material adverse effect on the business or affairs of the Company and its subsidiaries, taken as a whole; 
  
 (ii) Any unauthorized use or disclosure by the Employee of the Company’s confidential information or trade secrets resulting from
gross negligence that materially injures the Company and its subsidiaries, taken as a whole, or has a material adverse effect on the business or affairs of the Company and its subsidiaries, taken as a whole; 
  
 (iii) A failure by the Employee to comply with the
Company’s written policies or rules that materially injures the Company and its subsidiaries, taken as a whole, or has a material adverse affect on the business or affairs of the Company and its subsidiaries, taken as a whole, provided that the
Board shall have given the Employee notice of such failure and an opportunity to cure such failure, if curable; or 
  
 (iv) The Employee’s conviction of, or plea “guilty” or “no contest” to, a felony under the laws of the United
States or any State thereof. 
  
 With respect to acts or omissions described in
Paragraphs (i) and (iii) above, “Cause” shall only be deemed to exist following written notice to the Employee from the Company and his failure to cure such acts or omissions within 30 days of receipt of such written notice. 
  
 3. COVENANTS. 
  
 (a) Non-Solicitation. During his employment with the Company and, if
Section 2 applies, during the Continuation Period, the Employee shall not directly or indirectly, personally or through others, solicit or attempt to solicit the employment of any employee of the Company or any of the Company’s affiliates,
whether on the Employee’s own behalf or on behalf of any other person or entity. The term “employment” for purposes of this Subsection (a) means to enter into an arrangement for services as a full-time or part-time employee,
independent contractor, agent or otherwise. The Employee and the Company agree that this provision is reasonably enforced as to any geographic area in which the Company conducts its business. 
  

 5 

 (b) Non-Competition. The Employee agrees that, during his employment with the Company and during
the Continuation Period (if any), he shall not: 
  
 (i) Directly or indirectly, individually or in conjunction with others, engage in activities that compete with the Company or work for any entity that is part of the Company’s Market; 
  
 (ii) Solicit, serve, contract with or otherwise engage any
existing or prospective customer, client or account of the Company on behalf of any entity that is part of the Company’s Market; or 
  
 (iii) Cause or attempt to cause any existing or prospective customer, client or account of the Company to divert from, terminate, limit or
in any manner modify, or fail to enter into, any actual or potential business relationship with the Company. The Employee and the Company agree that this provision is reasonably enforced with reference to any geographic area in which the Company
maintains any such relationship. 
  
 For purposes of this Subsection (b), the
Company’s “Market” shall mean (i) all companies that derive their revenue primarily from e-procurement and/or spend management software sales or sales of software or services aiding companies in sourcing and/or spend management
activities and (ii) those companies set forth on Exhibit B attached hereto. The Employee and the Company agree that the Company’s Market is global in scope. 
  
 (c) Cooperation and Non-Disparagement. The Employee agrees that, during the Continuation Period, he shall cooperate
with and assist the Company in every reasonable respect in facilitating the transition of his duties to his successor; provided that the Employee shall not be required to devote more than 20 hours per month to providing such assistance and
cooperation. The Employee further agrees that, during the Continuation Period, he shall not in any way or by any means disparage the Company, the members of the Board or the Company’s officers and employees. 
  
 (d) Disclosure. The Employee agrees that, during the Continuation
Period, he shall inform any new employer or other person or entity with whom the Employee enters into a business relationship, before accepting employment or entering into a business relationship, of the existence of this Section 3. 
  
 (e) Construction. If any provision set forth in this Section 3 is not
enforceable under the laws of the State in which the Employee is employed following the termination of his employment with the Company, nothing in this Agreement shall prohibit the Employee from engaging in such lawful conduct; provided, however,
that if the Employee elects to do so, his rights to any of the benefits set forth in Section 2 shall terminate immediately. 
  
 4. PARACHUTE PAYMENTS. 
  
 (a) Parachute Gross-Up Payment. If it is determined that any cash payment of any type to the Employee or for his benefit by the Company, any of its
affiliates, any person who acquires ownership or effective control of the Company or ownership of a substantial portion of the Company’s assets (within the meaning of section 280G of the Internal Revenue 

  

 6 

 
Code of 1986, as amended (the “Code”), and the regulations thereunder) or any affiliate of such person, whether paid or payable pursuant to the
terms of this Agreement or otherwise (the “Total Payments”), would be subject to the excise tax imposed by section 4999 of the Code or any interest or penalties with respect to such excise tax (such excise tax and any such interest or
penalties are collectively referred to as the “Excise Tax”), then the Employee shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount calculated to ensure that after the Employee pays all taxes
(and any interest or penalties imposed with respect to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Total Payments. For
purposes of this Section 4, the Excise Tax and any related gross-up benefits shall be determined based on cash compensation, before consideration of the taxable compensation (if any) related to the Employee’s Equity and arising from this
Agreement. 
  
 (b) Determination by Accountant. All
determinations and calculations required to be made under this Section 4 shall be made by an independent accounting firm selected by the Employee from among the largest five accounting firms in the United States (the “Accounting Firm”).
The Accounting Firm shall provide its determination (the “Determination”), together with detailed supporting calculations regarding the amount of any Gross-Up Payment and any other relevant matter, to the Employee and the Company within
five business days after the Employee or the Company made a request (if the Employee reasonably believes that any of the Total Payments may be subject to the Excise Tax). If the Accounting Firm determines that no Excise Tax is payable by the
Employee, it shall furnish the Employee with a written statement that it has concluded that no Excise Tax is payable (including the reasons therefor) and that the Employee has substantial authority not to report any Excise Tax on his federal income
tax return. If a Gross-Up Payment is determined to be payable, it shall be paid to the Employee within five business days after the Determination has been delivered to him or the Company. Any determination by the Accounting Firm shall be binding
upon the Company and the Employee, absent manifest error. 
  
 (c)
Over- and Underpayments. As a result of uncertainty in the application of section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments not made by the Company should
have been made (“Underpayment”) or that Gross-Up Payments will have been made by the Company that should not have been made (“Overpayment”). In either event, the Accounting Firm shall determine the amount of the Underpayment or
Overpayment that has occurred. In the case of an Underpayment, the Company shall promptly pay the amount of such Underpayment to the Employee or for his benefit. In the case of an Overpayment, the Employee shall, at the direction and expense of the
Company, take such steps as are reasonably necessary (including the filing of returns and claims for refund), follow reasonable instructions from, and procedures established by, the Company, and otherwise reasonably cooperate with the Company to
correct such Overpayment, provided, however, that (i) the Employee shall in no event be obligated to return to the Company an amount greater than the net after-tax portion of the Overpayment that the Employee has retained or has recovered as a
refund from the applicable taxing authorities and (ii) this provision shall be interpreted in a manner consistent with the intent of Subsection (a) above, which is to make the Employee whole, on an after-tax basis, from the application of the Excise
Tax, it being understood that the correction of an Overpayment may result in the Employee’s repaying to the Company an amount that is less than the Overpayment. 
  

 7 

 (d) Limitation on Parachute Payments. Any other provision of this Section 4 notwithstanding, if
the Excise Tax could be avoided by reducing the Total Payments by $25,000 or less, then the Total Payments shall be reduced to the extent necessary to avoid the Excise Tax and no Gross-Up Payment shall be made. If the Accounting Firm determines that
the Total Payments are to be reduced under the preceding sentence, then the Company shall promptly give the Employee notice to that effect and a copy of the detailed calculation thereof. The Employee may then elect, in his sole discretion, which and
how much of the Total Payments are to be eliminated or reduced (as long as after such election no Excise Tax shall be payable), and the Employee shall advise the Company in writing of his election within 10 days of receipt of notice. If the Employee
makes no such election within such 10-day period, then the Company may elect which and how much of the Total Payments are to be eliminated or reduced (as long as after such election no Excise Tax shall be payable), and it shall notify the Employee
promptly of such election. 
  
 5. EMPLOYMENT AT WILL.

  
 The Employee’s employment with the Company shall be
“at will,” meaning that either the Employee or the Company shall be entitled to terminate the Employee’s employment at any time and for any reason, with or without Cause. Any contrary representations that may have been made to the
Employee shall be superseded by this Agreement. This Agreement shall constitute the full and complete agreement between the Employee and the Company on the “at will” nature of the Employee’s employment, which may only be changed in an
express written agreement signed by the Employee and a duly authorized officer of the Company. 
  
 6. SUCCESSORS. 
  
 (a)
Company’s Successors. This Agreement shall be binding upon any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, reorganization, liquidation or otherwise) to all or substantially all of the
Company’s business and/or assets. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets that becomes bound by this Agreement. 
  
 (b) Employee’s Successors. This Agreement and all rights of the
Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
  
 7. ARBITRATION. 
  
 (a) Scope of Arbitration Requirement. The parties hereby waive their
rights to a trial before a judge or jury and agree to arbitrate before a neutral arbitrator any and all claims or disputes arising out of this Agreement or the Release and any and all claims arising from or relating to the Employee’s employment
with the Company, including (but not limited to) claims against any current or former employee, director or agent of the Company, claims of wrongful termination, retaliation, discrimination, harassment, breach of contract, breach of the covenant of
good faith and fair dealing, defamation, invasion of privacy, fraud, misrepresentation, constructive discharge or failure to provide a leave of absence, claims regarding commissions, stock options or bonuses, infliction of emotional distress or
unfair business practices, or any tort or tort-like causes of action. 
  

 8 

 (b) Exceptions. The foregoing notwithstanding, the following are the only claims that may be
resolved in any appropriate forum (including courts of law) as required by applicable laws then in effect: (i) claims concerning workers’ compensation benefits; and (ii) claims concerning unemployment insurance. 
  
 (c) Procedure. The arbitrator’s decision shall be written and
shall include the findings of fact and law that support the decision. The arbitrator’s decision shall be final and binding on both parties, except to the extent applicable law allows for judicial review of arbitration awards. The arbitrator may
award any remedies that would otherwise be available to the parties if they were to bring the dispute in court. The arbitration shall be conducted in accordance with the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association; provided, however, that the arbitrator shall allow the discovery authorized by the California Arbitration Act or the discovery that the arbitrator deems necessary for the parties to vindicate their respective claims or
defenses. The arbitration shall take place in Santa Clara County or, at the Employee’s option, the county in which the Employee primarily worked with the Company at the time when the arbitrable dispute or claim first arose. 
  
 (d) Costs. The parties shall share the costs of arbitration equally,
except that the Company shall bear the cost of the arbitrator’s fee and any other type of expense or cost that the Employee would not be required to bear if he were to bring the dispute or claim in court. Both the Company and the Employee shall
be responsible for their own attorneys’ fees, and the arbitrator may not award attorneys’ fees unless a statute or contract at issue specifically authorizes such an award. 
  
 8. MISCELLANEOUS PROVISIONS. 
  
 (a) Notice. Notices and all other communications contemplated by this Agreement shall be in writing and shall be
deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of the Employee, mailed notices shall be addressed to him at the home address
that he most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 
  
 (b) Entire Agreement. This Agreement supersedes and replaces any prior
agreements, representations or understandings, whether written, oral or implied, between the Employee and the Company with respect to the subject matter hereof. 
  

(c) Modifications and Waivers. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or
discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Company (other than the Employee). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by
the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
  

 9 

 (d) Withholding Taxes. All payments made under this Agreement shall be subject to reduction to
reflect taxes or other charges required to be withheld by law. 
  
 (e) Choice of Law and Severability. This Agreement is executed by the parties in the State of California and shall be interpreted in accordance with the laws of such State (except their provisions governing the choice of law). If any
provision of this Agreement becomes or is deemed invalid, illegal or unenforceable in any jurisdiction by reason of the scope, extent or duration of its coverage, then such provision shall be deemed amended to the extent necessary to conform to
applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially altering the intention of the parties, then such provision shall be stricken and the remainder of this Agreement shall continue in full
force and effect. Should there ever occur any conflict between any provision contained in this Agreement and any present or future statute, law, ordinance or regulation contrary to which the parties have no legal right to contract, then the latter
shall prevail, but the provision of this Agreement affected thereby shall be curtailed and limited only to the extent necessary to bring it into compliance with applicable law. All the other terms and provisions of this Agreement shall continue in
full force and effect without impairment or limitation. 
  
 (f)
No Assignment. This Agreement and all rights and obligations of the Employee hereunder are personal to the Employee and may not be transferred or assigned by the Employee at any time; provided that Employee may assign his rights hereunder
pursuant to any property settlement resulting from the dissolution of his marriage on the condition that such rights shall be conditioned upon Employee’s performance of his obligations hereunder as if no such assignment had occurred. The
Company may assign its rights under this Agreement to any entity that assumes the Company’s obligations hereunder in connection with any sale or transfer of all or a substantial portion of the Company’s assets to such entity. 

 
 (g) Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and
year first above written. 
  

			
	
  
 ARIBA, INC.

		
	By	 	  

	Title:	 	  

  

 10 

 EXHIBIT A 
 FORM OF RELEASE 
  
 ARIBA, INC. 
 807 11TH AVENUE 
 SUNNYVALE, CA 94089 
  
                     
    , 20     
  
 Mr. Michael Schmitt 
  
 Dear Michael: 

 
 This letter (the “Agreement”) confirms the agreement between
you and Ariba, Inc. (the “Company”) regarding the termination of your employment with the Company. 
  
 1. Termination Date. Your employment with the Company will terminate on
                         , 20     (the “Termination Date”). 
  
 2. Effective Date and Rescission. You have up to 21 days after you
received this Agreement to review it. You are advised to consult an attorney of your own choosing (at your own expense) before signing this Agreement. Furthermore, you have up to seven days after you signed this Agreement to revoke it. If you wish
to revoke this Agreement after signing it, you may do so by delivering a letter of revocation to me. If you do not revoke this Agreement, the eighth day after the date you signed it will be the “Effective Date.” Because of the seven-day
revocation period, no part of this Agreement will become effective or enforceable until the Effective Date. 
  
 3. Salary and Vacation Pay. On the Termination Date, the Company will pay you
$             (less all applicable withholding taxes and other deductions). This amount represents all of your salary earned through the Termination Date and all of your accrued but
unused vacation time or PTO. You acknowledge that, if you did not execute this Agreement, you would not be entitled to receive any additional money from the Company. The only payments and benefits that you are entitled to receive from the Company in
the future are those specified in this Agreement. 
  
 4.
Severance Benefits. In consideration of executing this Agreement, you will receive from the Company the severance payments and other benefits described in Section 2 of the Severance Agreement dated November 4, 2004, between you and the
Company (the “Severance Agreement”). As described in Section 2 of the Severance Agreement, the continuation of such severance benefits is subject to your compliance with the covenants described in Section 3 of the Severance Agreement.

  
 5. Release of Your Claims. In consideration of
receiving the severance payments and other benefits described in Section 2 of the Severance Agreement, you waive, 

 release and promise never to assert any claims or causes of action, whether or not now known, against the Company or its
predecessors, successors or past or present subsidiaries, stockholders, directors, officers, employees, consultants, attorneys, agents, assigns and employee benefit plans with respect to any matter, including (without limitation) any matter related
to your employment with the Company or the termination of that employment, including (without limitation) claims to attorneys’ fees or costs, claims of wrongful discharge, constructive discharge, emotional distress, defamation, invasion of
privacy, fraud, breach of contract or breach of the covenant of good faith and fair dealing and any claims of discrimination or harassment based on sex, age, race, national origin, disability or any other basis under Title VII of the Civil Rights
Act of 1964, the California Fair Employment and Housing Act, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act and all other laws and regulations relating to employment. However, this release bars only those
claims that arose prior to the execution of this Agreement. Execution of this Agreement does not bar: 
  
 (a) Any claim that arises hereafter; 
  
 (b) Any claim arising under the Indemnification Agreement dated June 8, 2001, between you and the Company, as amended (the
“Indemnification Agreement”); 
  
 (c)
Any claim to indemnification or advancement of expenses arising under the Company’s Amended and Restated Certificate of Incorporation, as amended (the “Certificate”), or the Company’s Amended and Restated Bylaws, as amended (the
“Bylaws”); or 
  
 (d) Any claim to
indemnification or advancement of expenses arising under applicable State statutes. 
  
 6. Release of the Company’s Claims. The Company waives, releases and promises never to assert any claims or causes of action, whether or not now known, against you or your successors, agents or assigns
with respect to any matter, including (without limitation) any matter related to your employment with the Company or the termination of that employment, including (without limitation) claims to attorneys’ fees or costs and claims of defamation,
fraud, breach of contract or breach of the covenant of good faith and fair dealing. However, this release bars only those claims that arose prior to the execution of this Agreement. Execution of this Agreement does not bar: 
  
 (a) Any claim that arises hereafter; 
  
 (b) Any claim arising under the Indemnification Agreement;

  
 (c) Any claim to repayment of indemnification
payments arising under the Certificate or the Bylaws; or 
  
 (d) Any claim to repayment of indemnification payments arising under applicable State statutes. 
  
 7. Waiver. You and the Company expressly waive and release any and all rights and benefits under Section 1542 of the California Civil Code (or any
analogous law of any 
  

 12 

 other State), which reads as follows: “A general release does not extend to claims which the creditor does not know
or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” 
  

8. Promise Not To Sue. You agree that you will never, individually or with any other person, commence, aid in any way (except as required by
legal process) or prosecute, or cause or permit to be commenced or prosecuted, any action or other proceeding based on any claim that has been released pursuant to Section 5 above. The Company agrees that it will never, individually or with any
other person, commence, aid in any way (except as required by legal process) or prosecute, or cause or permit to be commenced or prosecuted, any action or other proceeding based on any claim that has been released pursuant to Section 6 above.

  
 9. No Admission. Nothing contained in this Agreement
will constitute or be treated as an admission by you or the Company of liability, any wrongdoing or any violation of law. 
  
 10. Employee Agreement. At all times in the future, you will remain bound by your Employee Agreement with the Company. 
  
 11. Company Property. You represent that you have returned to the
Company all property that belongs to the Company, including (without limitation) copies of documents that belong to the Company and files stored on your computer(s) that contain information belonging to the Company. 
  
 12. Severability; Modifications. If any term of this Agreement is held
to be invalid, void or unenforceable, the remainder of this Agreement will remain in full force and effect and will in no way be affected, and the parties will use their best efforts to find an alternate way to achieve the same result. This
Agreement may be modified only in a written document signed by you and a duly authorized officer of the Company. 
  
 13. Choice of Law; Arbitration. This Agreement will be construed and interpreted in accordance with the laws of the State of California (other than
their choice-of-law provisions). The arbitration requirement described in Section 7 of the Severance Agreement shall also apply to this Agreement. 
  
 14. Execution. This Agreement may be executed in counterparts, each of which will be considered an original, but all of which together will
constitute one agreement. Execution of a facsimile copy will have the same force and effect as execution of an original, and a facsimile signature will be deemed an original and valid signature. 
  

 13 

 Please indicate your agreement with the above terms by signing below. 
  

			
	 Very truly yours,

	
	 ARIBA, INC.

		
	 By:
	 	  

	 Title:
	 	  

  
 I agree to the terms of this
Agreement, and I am voluntarily signing this release of all claims. I acknowledge that I have read and understand this Agreement, and I understand that I cannot pursue any of the claims and rights that I have waived in this Agreement at any time in
the future. 
  

	
	

	 Signature of Michael Schmitt

  

			
	Dated:	 	  

  

 14 

 EXHIBIT B 
  

LIST OF COMPANIES 
  
 Agile 
 Atlas Commerce 
 B2E Markets 
 Broadvision 
 C1 
 Clarus 
 Concur 
 diCarta 
 Emptoris

 First Index 
 Frictionless Commerce 
 Healy Hudson 
 i2 
 iMany 
 ICG Commerce 
 Manugistics 
 Matrix One 
 Oracle 
 PeopleSoft 
 Peregrine 
 PurchasePro 
 Siebel 
 ShareMax 
 Webango 
 Zeborg 
  

 15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]