Document:

Exhibit 10.1

 

SEEBEYOND
TECHNOLOGY CORPORATION

 

CHANGE
OF CONTROL EMPLOYMENT AGREEMENT

 

FOR

 

JAMES
T. DEMETRIADES

 

 

TABLE OF CONTENTS

 

	
  Article I. Certain Definitions

  	
   

  
	
  1.1.

  	
   

  	
  “Accrued Obligations”

  	
   

  
	
  1.2.

  	
   

  	
  “Affiliate”

  	
   

  
	
  1.3.

  	
   

  	
  “Agreement Date”

  	
   

  
	
  1.4.

  	
   

  	
  “Agreement Term”

  	
   

  
	
  1.5.

  	
   

  	
  “Article”

  	
   

  
	
  1.6.

  	
   

  	
  “Base Salary”

  	
   

  
	
  1.7.

  	
   

  	
  “Beneficial Owner”

  	
   

  
	
  1.8.

  	
   

  	
  “Beneficiary”

  	
   

  
	
  1.9.

  	
   

  	
  “Board”

  	
   

  
	
  1.10.

  	
   

  	
  “Bonus”

  	
   

  
	
  1.11.

  	
   

  	
  “Cause”

  	
   

  
	
  1.12.

  	
   

  	
  “Change of Control”

  	
   

  
	
  1.13.

  	
   

  	
  “Change of Control Date”

  	
   

  
	
  1.14.

  	
   

  	
  “Code”

  	
   

  
	
  1.15.

  	
   

  	
  “Common Stock”

  	
   

  
	
  1.16.

  	
   

  	
  “Company”

  	
   

  
	
  1.17.

  	
   

  	
  “Competitive Business”

  	
   

  
	
  1.18.

  	
   

  	
  “Continuity of Ownership”

  	
   

  
	
  1.19.

  	
   

  	
  “Disability”

  	
   

  
	
  1.20.

  	
   

  	
  “Exchange Act”

  	
   

  
	
  1.21.

  	
   

  	
  “Good Reason”

  	
   

  
	
  1.22.

  	
   

  	
  “including”

  	
   

  
	
  1.23.

  	
   

  	
  “Incumbent Directors”

  	
   

  
	
  1.24.

  	
   

  	
  “Notice of Termination”

  	
   

  
	
  1.25.

  	
   

  	
  “Performance Period”

  	
   

  
	
  1.26.

  	
   

  	
  “Person”

  	
   

  
	
  1.27.

  	
   

  	
  “Plans”

  	
   

  
	
  1.28.

  	
   

  	
  “Post-Change Employment Period”

  	
   

  
	
  1.29.

  	
   

  	
  “Pro-rata Bonus”

  	
   

  
	
  1.30.

  	
   

  	
  “Reorganization Transaction”

  	
   

  
	
  1.31.

  	
   

  	
  “SEC Person”

  	
   

  
	
  1.32.

  	
   

  	
  “Section”

  	
   

  
	
  1.33.

  	
   

  	
  “Severance Period”

  	
   

  
	
  1.34.

  	
   

  	
  “Stock Options”

  	
   

  
	
  1.35.

  	
   

  	
  “Stock Plan”

  	
   

  
	
  1.36.

  	
   

  	
  “Surviving Corporation”

  	
   

  
	
  1.37.

  	
   

  	
  “Target Bonus”

  	
   

  
	
  1.38.

  	
   

  	
  “Termination Date”

  	
   

  
	
  1.39.

  	
   

  	
  “Termination of Employment”

  	
   

  
	
  1.40.

  	
   

  	
  “Voting Securities”

  	
   

  
	
  1.41.

  	
   

  	
  “Welfare Benefits”

  	
   

  

 

i

 

	
  Article II. Benefits Upon a Change of
  Control

  	
   

  
	
  2.1.

  	
   

  	
  Position and Duties

  	
   

  
	
  2.2.

  	
   

  	
  Compensation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article III. Company’s Obligations Upon
  Certain Terminations of Employment

  	
   

  
	
  3.1.

  	
   

  	
  Termination Without Cause or For Good
  Reason Not Related

  	
   

  
	
   

  	
   

  	
  To or In Anticipation of a Change of
  Control

  	
   

  
	
  3.2.

  	
   

  	
  Termination Without Cause or For Good
  Reason Related

  	
   

  
	
   

  	
   

  	
  To or In Anticipation of a Change of
  Control

  	
   

  
	
  3.3.

  	
   

  	
  Time of Payment

  	
   

  
	
  3.4.

  	
   

  	
  Waiver and Release

  	
   

  
	
  3.5.

  	
   

  	
  Termination for Cause or Other Than for
  Good Reason

  	
   

  
	
  3.6.

  	
   

  	
  Disability or Death

  	
   

  
	
  3.7.

  	
   

  	
  Notice of Termination

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article IV. Limitation on Payments by the
  Company

  	
   

  
	
  4.1.

  	
   

  	
  Limitation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article V. Arbitration 

  	
   

  
	
  5.1.

  	
   

  	
  Binding Arbitration

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VI. No Set-off or Mitigation 

  	
   

  
	
  6.1.

  	
   

  	
  No Set-off by Company

  	
   

  
	
  6.2.

  	
   

  	
  No Mitigation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VII. Confidentiality and
  Noncompetition 

  	
   

  
	
  7.1.

  	
   

  	
  Confidential Information

  	
   

  
	
  7.2.

  	
   

  	
  Non-Competition

  	
   

  
	
  7.3.

  	
   

  	
  Non-Solicitation

  	
   

  
	
  7.4.

  	
   

  	
  Intellectual Property

  	
   

  
	
  7.5.

  	
   

  	
  Reasonableness of Restrictive Covenants

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VIII. Non-Exclusivity of Rights 

  	
   

  
	
  8.1.

  	
   

  	
  Waiver of Certain Other Rights

  	
   

  
	
  8.2.

  	
   

  	
  Other Rights

  	
   

  
	
  8.3.

  	
   

  	
  No Right to Continued Employment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article IX. Miscellaneous

  	
   

  
	
  9.1.

  	
   

  	
  No Assignability

  	
   

  
	
  9.2.

  	
   

  	
  Successors

  	
   

  
	
  9.3.

  	
   

  	
  Payments to Beneficiary

  	
   

  
	
  9.4.

  	
   

  	
  Non-Alienation of Benefits

  	
   

  
	
  9.5.

  	
   

  	
  Severability

  	
   

  
	
  9.6.

  	
   

  	
  Amendments

  	
   

  
	
  9.7.

  	
   

  	
  Notices

  	
   

  
	
  9.8.

  	
   

  	
  Counterparts

  	
   

  
	
  9.9.

  	
   

  	
  Governing Law

  	
   

  

 

ii

 

	
  9.10.

  	
   

  	
  Captions

  	
   

  
	
  9.11.

  	
   

  	
  Number and Gender

  	
   

  
	
  9.12.

  	
   

  	
  Tax Withholding

  	
   

  
	
  9.13.

  	
   

  	
  Waiver

  	
   

  
	
  9.14.

  	
   

  	
  Entire Agreement

  	
   

  

 

iii

 

SeeBeyond
Technology Corporation

 

CHANGE
OF CONTROL EMPLOYMENT AGREEMENT

 

THIS AGREEMENT dated as of February 23, 2005
(the “Agreement Date”) is made by and between SeeBeyond Technology Corporation,
a Delaware corporation (together with all successors thereto, the “Company”),
and James Demetriades (“Executive”), an individual resident of California.

 

RECITALS

 

The Company has determined that it is in the
best interests of the Company and its stockholders to assure that the Company
will have the continued services of Executive. 
The Company also believes it is imperative to reduce the distraction of
Executive that would result from the personal uncertainties caused by a pending
or threatened change of control of the Company, to encourage Executive’s full
attention and dedication to the Company, and to provide Executive with
compensation and benefits arrangements upon a change of control which ensure that
the expectations of Executive will be satisfied and are competitive with those
of similarly-situated businesses.  This
Agreement is intended to accomplish these objectives.

 

Article I.

 

CERTAIN DEFINITIONS

 

As used in this Agreement, the terms specified
below shall have the following meanings:

 

1.1.          “Accrued
Obligations” means, as of any date, the sum of
Executive’s (a) Base Salary that is accrued but not yet paid as of the
Termination Date, (b) Bonus earned but not yet paid with respect to any Performance
Period ended prior to the Termination Date, (c) accrued but unpaid paid
vacation or paid time off, and (d) any other amounts and benefits which are
then due to be paid or provided to Executive by the Company, but have not yet
been paid or provided.

 

1.2.          “Affiliate” means any Person that
directly or indirectly controls, is controlled by, or is under common control
with, the Company.  For purposes of this
definition the term “control” with respect to any Person means the power to
direct or cause the direction of management or policies of such Person,
directly or indirectly, whether through the ownership of Voting Securities, by
contract or otherwise.

 

1.3.          “Agreement
Date” has the meaning defined for that term in the
introduction to this Agreement.

 

1.4.          “Agreement
Term” means the period beginning on the Agreement
Date and continuing thereafter so long as Executive is employed by the Company
or by a successor to the Company that assumes this Agreement pursuant to
Section 9.2.

 

1.5.          “Article”
means an article of this Agreement.

 

 

1.6.          “Base
Salary” has the meaning defined for that term in
Section 2.2(a).

 

1.7.          “Beneficial
Owner” means such term as defined in Rule 13d-3
under the Exchange Act.

 

1.8.          “Beneficiary”
has the meaning defined for that term in Section 10.3.

 

1.9.          “Board”
means the Board of Directors of the Company, or, from and after the effective
date of a Reorganization Transaction, the Board of Directors of the Surviving
Corporation.

 

1.10.        “Bonus”
has the meaning defined for that term in Section 2.2(b).

 

1.11.        “Cause”
means any one or more of the following:

 

(a)           Executive’s
willful violation of any law or regulation applicable to the business of the
Company;

 

(b)           Executive’s
conviction of or plea of no contest to any felony;

 

(c)           Executive’s
commission of any willful act involving moral turpitude or common law fraud
whether or not related to the business of the Company;

 

(d)           Executive’s
willful misconduct that is materially injurious to the financial condition or
business reputation of the Company or otherwise is materially injurious to the
Company;

 

(e)           Any
act of gross negligence in Executive’s performance of his duties as an
employee;

 

(f)            Any
violation by Executive of the “Behaviors at Work” provisions of the Company’s
Employee Manual; and

 

provided,
however that an act or omission described in clause (e) or (f) shall not
constitute Cause unless the Company first gives Executive 30 days’ advance
written notice of such act or omission that specifically refers to this
Section, and thereafter shall not constitute Cause if Executive cures such act
or omission to the fullest extent that it is curable.

 

1.12.        “Change
of Control” means, except as otherwise provided
below, the occurrence of any one or more of the following:

 

(a)           any
SEC Person becomes the Beneficial Owner of 50% or more of the Common Stock or
of Voting Securities representing 50% or more of the combined voting power of
all Voting Securities of the Company; or

 

(b)           the
Incumbent Directors (determined using the Agreement Date as the baseline date)
cease for any reason to constitute at least a majority of the Board; or

 

2

 

(c)           consummation
of a merger, reorganization, consolidation, or similar transaction (any of the
foregoing, a “Reorganization Transaction”) where the Continuity of
Ownership is not more than 50%; or

 

(d)           consummation
of a plan or agreement for the sale or other disposition of all or
substantially all of the consolidated assets of the Company; or

 

(e)           approval
by the Company’s stockholders of a plan of liquidation of the Company.

 

A Change of
Control shall not occur with respect to Executive if, in advance of such event,
Executive agrees in writing that such event shall not constitute a Change of
Control.

 

1.13.        “Change
of Control Date” means the date on which a Change
of Control first occurs during the Agreement Term.

 

1.14.        “Code”
means the Internal Revenue Code of 1986, as amended.  References to particular provisions of the
Code include references to successor provisions.

 

1.15.        “Common
Stock” means the common stock of the Company.

 

1.16.        “Company”
has the meaning defined for that term in the introductory paragraph to this
Agreement and includes any successor to a Company.

 

1.17.        “Competitive
Business” means as of any date (including during
Severance Period) any Person (and any branch, office or operation thereof) that
engages in, or proposes to engage in:

 

(a)           the
development and deployment of enterprise application integration (EAI) and
composite applications, including but not limited to IT convergence, business
process management, single view applications, multi-channel integration, and
business activity monitoring; or

 

(b)           any
other business that as of such date is a direct and material competitor of a
Company and its Affiliates to the extent that prior to the Date of Termination
any of the Company or its Affiliates engaged at any time within 12 months in or
had under active consideration a proposal to engage in such competitive
business;

 

and that is
located anywhere in the United States or anywhere outside of the United States
where such Company or its Affiliates is then engaged in, or has under active
consideration a proposal to engage in, any of such activities.

 

1.18.        “Continuity
of Ownership” of a stated percentage means the
Persons who were the direct or indirect owners of the outstanding Common Stock
and Voting Securities of the Company immediately before a Reorganization
Transaction became, immediately after the consummation of the Reorganization
Transaction, the direct or indirect owners of both the stated percentage of the
then-outstanding common stock of the Surviving Corporation and Voting
Securities representing the stated percentage of the combined voting power of
the then-outstanding Voting Securities of the Surviving Corporation, in
substantially the same 

 

3

 

respective proportions as such Persons’
ownership of the Common Stock and Voting Securities of the Company immediately
before the Reorganization Transaction.

 

1.19.        “Disability”
means (i) if Executive is covered by a disability income Plan of the Company, “Disability”
as defined for purposes of such Plan, or (ii) if Executive is not covered by a
disability income Plan of the Company, a physical or mental impairment that in
the medical judgment of a physician acceptable to Executive has lasted or is
expected to last for at least six months and renders the Executive incapable,
with or without accommodation, of performing the material duties of his
employment with the Company.

 

1.20.        “Exchange
Act” means the Securities Exchange Act of 1934, as
amended.

 

1.21.        “Good
Reason” means the occurrence of any one or more of
the following actions or omissions:

 

(a)           any
material adverse change in the title, duties, and reporting chain of Executive
as in effect on the Agreement Date or, after a Change of Control, as required
by Section 2.1;

 

(b)           any
material reduction in Base Salary or Bonus opportunity as in effect on the
Agreement Date or, after a Change of Control, as required by Section 2.2;

 

(c)           requiring
Executive without his consent to be based at any office or location more than
35 miles from Executive’s business office or location as of the Agreement Date
or, after a Change of Control, as of the Change of Control Date; and

 

(d)           any
other material breach of this Agreement by the Company.

 

1.22.        “including”
means including without limitation.

 

1.23.        “Incumbent
Directors” means, as of any specified baseline
date, individuals then serving as members of the Board who were members of the
Board as of the date immediately preceding such baseline date; provided that
any subsequently-appointed or elected member of the Board whose election, or
nomination for election, by stockholders of the Company or the Surviving
Corporation, as applicable, was approved by a vote or written consent of at
least a majority of the directors then comprising the Incumbent Directors shall
also thereafter be considered an Incumbent Director.

 

1.24.        “Notice
of Termination” means a written notice containing
(i) the specific termination provision in this Agreement relied upon by the
party giving such notice, (ii) in reasonable detail the specific facts and
circumstances claimed to provide a basis for such Termination of Employment,
and (iii) if the Termination Date is other than the date of receipt of such
Notice of Termination, the Termination Date.

 

1.25.        “Performance
Period” means each period of time designated in
accordance with any Bonus Plan, or in the absence of such Bonus Plan or any
such designated period of time, each calendar year.

 

4

 

1.26.        “Person”
means any individual, sole proprietorship, partnership, joint venture, limited
liability company, trust, unincorporated organization, association, corporation,
institution, public benefit corporation, entity or government instrumentality,
division, agency, body or department.

 

1.27.        “Plans”
means plans, programs, policies, practices or procedures of the Company.

 

1.28.        “Post-Change
Employment Period” means the period commencing on
the Change of Control Date and ending on the third annual anniversary of the
Change of Control Date.

 

1.29.        “Pro-rata
Bonus” means an amount equal to the product of
Executive’s Target Bonus (for the Performance Period in which the Termination
Date occurs) multiplied by a fraction, the numerator of which is the number of
days elapsed in the Performance Period through the Termination Date, and the
denominator of which is the number of days in the Performance Period.

 

1.30.        “Reorganization
Transaction” has the meaning defined for that term
in clause (c) of the definition of “Change of Control.”

 

1.31.        “SEC
Person” means any person (as such term is used in
Rule 13d-5 under the Exchange Act) or group (as such term is defined in
Sections 3(a)(9) and 13(d)(3) of the Exchange Act), other than an Affiliate or
any employee benefit plan (or any related trust) of the Company or any of its
Affiliates.

 

1.32.        “Section”
means, unless the context otherwise requires, a section of this Agreement.

 

1.33.        “Severance
Period” means, in respect of an Executive entitled
to a payment under Section 3.1(b) or 3.2(c), the period described in
Section 3.1(b)(ii) or 3.2(c)(ii), whichever is applicable.

 

1.34.        “Stock
Options” means stock options, stock appreciation
rights, and similar incentive awards granted pursuant to Stock Plan or any
similar plan or successor plan.

 

1.35.        “Stock
Plan” means the SeeBeyond Technology Corporation
1998 Stock Plan as amended from time to time.

 

1.36.        “Surviving
Corporation” means the corporation resulting from
a Reorganization Transaction or, if securities representing at least 50% of the
aggregate voting power of such resulting corporation is directly or indirectly
owned by another corporation, such other corporation.

 

1.37.        “Target Bonus” means the amount Executive would
have been entitled to receive for the applicable Performance Period if the
performance goals were achieved at the target (or “plan”) level as of the end
of the Performance Period; provided, however, that any reduction in Executive’s
Base Salary or Bonus opportunity that would qualify as Good Reason shall be
disregarded for purposes of this definition.

 

5

 

1.38.        “Termination
Date” means the date of the receipt of the Notice
of Termination by Executive (if such
Notice is given by the Company) or by the Company (if such Notice is given by
Executive), or any later date, not more than 15 days after the giving of such
Notice, specified in such notice as of which Executives’ employment shall be
terminated; provided, however, that if Executive’s employment is terminated by
reason of death or Disability or if no Notice of Termination is given, the
Termination Date shall be the last date on which Executive is employed by the
Company.

 

1.39.        “Termination
of Employment” means any termination of Executive’s
employment with the Company and its Affiliates (determined as of date of such
termination), whether such termination is initiated by the Company or by
Executive.

 

1.40.        “Voting
Securities” means securities of a corporation that
are entitled to vote generally in the election of directors of the corporation.

 

1.41.        “Welfare
Benefits” means welfare benefits, whether or not
provided under a Plan, including medical, prescription, vision and dental
benefits.

 

Article II.

 

BENEFITS UPON A CHANGE OF CONTROL

 

2.1.          Position
and Duties. 
During the Post-Change Employment Period, Executive’s position
(including offices, titles, reporting requirements and responsibilities) shall
be at least commensurate in all material respects with the most significant of
those held, exercised and assigned at any time during the 90-day period
immediately before the Change of Control Date, (ii) Executive’s services
shall be performed at the location where Executive was employed immediately
before the Change of Control Date or any other location no more than 35 miles
from such former location, and (iii) Executive shall devote Executive’s full
attention and time to the business and affairs of the Company and use Executive’s
best efforts to perform those duties in all material respects commensurate with
the duties performed during the 90-day period immediately before the Change of
Control Date.

 

2.2.          Compensation.  During the Post-Change Employment Period, the
Company shall pay or cause to be paid to Executive (i) an annual base salary in
cash, which shall be paid in a manner consistent with the Company’s payroll
practices in effect immediately before the Change of Control Date, at an annual
rate not less than 12 times the highest monthly base salary paid or payable to
Executive by the Company in respect of the 12-month period immediately before
the Change of Control Date (such annual rate of salary, the “Base Salary”);
(ii) provide to Executive the opportunity to receive payment of a bonus (the “Bonus”)
with a bonus opportunity no less than, and target (or “plan”) performance goals
substantially comparable to, those in effect immediately prior to the Change of
Control Date for each Performance Period which ends during the Post-Change
Employment Period; and (iii) Executive and Executive’s family shall be eligible
to participate in, and receive all benefits under, Welfare Benefits under the
same plans (including provider networks) as those applicable to Executive
immediately before the Change of Control Date. 
The costs of such Welfare Benefits to Executive shall not exceed the
cost of such benefits to actively employed peer executives of the Company as
applicable from time to time.

 

6

 

Article III.

 

COMPANY’S OBLIGATIONS UPON CERTAIN TERMINATIONS OF
EMPLOYMENT

 

3.1.          Termination
Without Cause or For Good Reason Not Related To or In Anticipation of a Change
of Control. 
If during the Agreement Term the Company terminates Executive’s
employment other than for Cause or Disability, or Executive terminates
employment for Good Reason, and Section 3.2 does not apply, the Company
shall pay or provide to Executive:

 

(a)           Accrued
Obligations.  A lump-sum cash amount
equal to all Accrued Obligations (reduced (but not below zero) by that portion,
if any, of any such Accrued Obligations previously paid to Executive whether
pursuant to this Agreement or otherwise.

 

(b)           Severance
Benefit.  A lump-sum cash amount
equal to (i) the highest monthly base salary paid or payable to Executive by
the Company in respect of the 12-month period immediately before the
Termination Date, multiplied by (ii) a number equal to (A) one month for each
year of service (pro-rated for partial years of service) plus (B) six months,
up to a total maximum of 18 months.

 

3.2.          Termination
Without Cause or For Good Reason Related To or In Anticipation of a Change of
Control. 
If, in anticipation of a Change of Control or thereafter during the Post-Change
Employment Period, the Company terminates Executive’s employment other than for
Cause or Disability, or Executive terminates employment for Good Reason, the
Company shall pay or provide to Executive:

 

(a)           Accrued
Obligations.  A lump-sum cash amount
equal to all Accrued Obligations, reduced (but not below zero) by that portion,
if any, of any such Accrued Obligations for the previously paid to Executive,
whether pursuant to this Agreement or otherwise;

 

(b)           Severance
Benefit.  A lump-sum cash amount
equal to (i) sum (A) of the highest monthly Base Salary paid or payable to
Executive by the Company in respect of the 12-month period immediately before
the Termination Date, plus (B) the monthly equivalent of Executive’s
Target Bonus for the Performance Period which includes the Termination Date
(or, if greater, for the Performance Period which includes the Change of
Control Date), multiplied by (ii) a number equal to (A) one month for each year
of service (pro-rated for partial years of service) plus (B) six months, up to
a total maximum of 18 months.

 

(c)           Vesting
of Stock Options.  Upon the
Termination Date, fifty percent (50%) of Executive’s outstanding Stock Options
that are not otherwise vested and exercisable immediately before the
Termination Date shall become fully vested and exercisable.  Thereafter, Executive’s unvested outstanding
Stock Options not becoming vested and exercisable pursuant to this subsection
shall become vested and exercisable on the schedule set forth in the Award (as
defined in the Stock Plan) with the number of Stock Options becoming vested and
exercisable shall be the same percentage of the 

 

7

 

unvested Stock Options remaining after
applying this subsection as such schedule provided for the vesting of unvested
Stock Options before applying this subsection.

 

(d)           Pro-rata
Bonus for Performance Period of Termination.  A lump-sum cash amount equal to Executive’s
Pro-rata Bonus reduced (but not below zero) by the amount of any Bonus paid to
Executive with respect to the Performance Period in which the Termination Date
occurs, whether paid pursuant to this Agreement or otherwise;

 

(e)           Unvested
Plan Benefits.  A lump-sum cash
amount equal to the amount, if any, forfeited by Executive upon the Termination
of Employment under any 401(k) plan or other tax-qualified pension or profit
sharing plan maintained by the Company.

 

(f)            Continuation
of Welfare Benefits.  The Company
shall continue, to provide to Executive and Executive’s family, Welfare
Benefits under the same plans (including the same provider networks) as those
applicable to Executive immediately before the Change of Control Date.  The costs of such Welfare Benefits to
Executive shall not exceed the cost of such benefits to actively employed peer
executives of the Company as applicable from time to time.  Executive’s rights under this Section shall
be in addition to, and not in lieu of, any post-termination continuation
coverage or conversion rights Executive may have pursuant to applicable law,
including continuation coverage required by Section 4980 of the Code.  These Welfare Benefits shall be secondary to
any similar welfare benefits provided by the Executive’s subsequent employer
(if any).

 

(g)           Indemnification.  The Executive shall be indemnified and held
harmless by the Company to the greatest extent permitted under applicable
Delaware law (or the law of the State of incorporation of Company, any
successor or Surviving Corporation) and the Company’s respective by-laws as
such exist on the Agreement Date if the Executive was, is, or is threatened to
be, made a party to any proceeding whether civil, criminal, administrative or
investigative, and whether formal or informal, by reason of Executive’s status
as an actual or potential director, officer, employee, agent, or fiduciary of a
Company or any other entity (“Proceeding”), against all expenses (including all
reasonable attorneys’ fees) and all claims, damages, liabilities and losses
incurred or suffered by the Executive. 
The Company shall advance reasonable expenses, including but not limited
to reasonable attorneys fees and costs, to Executive or pay such expenses for
Executive, all in advance of the final disposition of any such matter, upon the
written request of Executive and a written undertaking by Executive to repay
such amounts if it is ultimately determined that Executive is not entitled to
indemnification.

 

(h)           Anticipation
of a Change of Control.  For purposes
of this Agreement a Termination of Employment is in anticipation of a Change of
Control only if it is in anticipation of a Change of Control that actually
occurs within one year of the Termination of Employment.  Any payment or benefit required by this
Section for a Termination of Employment in anticipation of a Change of Control
that is not paid or provided at such Termination of Employment shall be paid or
provided immediately upon such Change of Control, retroactive to the
Termination of Employment, except as otherwise required by Section 3.3.

 

8

 

3.3.          Time
of Payment. 
Any lump-sum cash payment required by this Article III shall be made not
later than 30 days after Termination of Employment, except that if (i)
Executive is a key employee (as determined under Section 416(i) of the Code
without regard to paragraph (5) thereof) of the Company or Surviving
Corporation, (ii) any common stock of the Company or Surviving Corporation is
publicly traded on an established securities market, and (iii) a portion of
such payment is deferred compensation within the meaning of Section 409A of the
Code, the portion of such lump-sum cash payment required by this Article III
that is deferred compensation shall be made on the first business day after the
date which is 6 months after the Termination Date (or, if earlier, upon the
death of the Executive), to the extent necessary to comply with
Section 409A after applying all applicable transitional rules.

 

3.4.          Waiver
and Release. 
The Company shall have no obligation to Executive under this
Article III unless and until Executive executes a release and waiver of
the Company, in form and substance satisfactory to the Company, and the period
(if any) during which Executive may revoke such release and waiver has expired
without revocation.

 

3.5.          Termination
for Cause or Other Than for Good Reason.  If the Company terminates Executive’s
employment for Cause, or Executive elects to retire or otherwise terminate
employment other than for Good Reason, the Company’s sole obligation to
Executive under this Agreement shall be to pay Executive, pursuant to the
Company’s then-effective Plans, a lump-sum cash amount equal to all Accrued
Obligations determined as of the Termination Date.

 

3.6.          Disability
or Death. 
If Executive’s employment is terminated by reason of Executive’s death
or Disability, the Company’s sole obligations to Executive under this Agreement
shall be to pay Executive or Executive’s Beneficiary, pursuant to the Company’s
then-effective Plans, a lump-sum cash amount equal to all Accrued Obligations,
and to provide Executive or Executive’s Beneficiary Disability, survivor and
other benefits, if any, that are not less than the most favorable survivor and
other benefits then available under plans of the Company.

 

3.7.          Notice
of Termination. 
Any Termination of Employment of Executive by the Company for any reason
or by the Executive for Good Reason shall be communicated to the other and
effective pursuant to a Notice of Termination.

 

Article IV.

 

LIMITATION ON PAYMENTS BY THE COMPANY

 

4.1.          Limitation.  In the event that the Company’s independent
tax counsel confirm in writing to the Company and Executive that payments under
this Agreement, together with any other payments to Executive from the Company
that are “parachute payments” within the meaning of Section 280G of the Code (“Potential
Parachute Payments”) would otherwise exceed three times the Executive’s “base
amount” as defined in Section 280G of the Code, then notwithstanding anything
to the contrary in this Agreement the payments under this Agreement shall be
reduced to an amount such that the Potential Parachute Payments do not exceed
2.99 times the Executive’s base amount. 
Any reduction in payments required by this Section 4.1 shall 

 

9

 

be applied to such payments and benefits
under this Agreement as the Company in its sole discretion deems necessary,
shall be communicated to Executive in writing prior to the date the first
reduced payment or benefit would otherwise be due, shall be accompanied by the
certification of the Company’s independent auditors to Executive that the
reductions are in the minimum amount required to comply with this Section 4.1.

 

Article V.

 

ARBITRATION

 

5.1.          Binding
Arbitration. 
Any dispute, controversy or claim arising out of or in connection with
or relating to this Agreement or any breach or alleged breach thereof, or any
benefit or alleged benefit hereunder, shall be submitted to and settled by
binding arbitration, in accordance with the American Arbitration Association
rules (“AAA Rules”) for the resolution of employment disputes.  Any award rendered shall be final and
conclusive upon the parties and a judgment thereon may be entered in the
highest court of a forum, state or federal, having jurisdiction.  The expenses of the arbitration shall be
borne according to AAA Rules and applicable law.  No arbitration shall be commenced after the
date when institution of legal or equitable proceedings based upon such subject
matter would be barred by the applicable statute of limitations.  Notwithstanding anything to the contrary
contained in this Section 5.1 or elsewhere in this Agreement, either party may
bring an action in any applicable court having jurisdiction of the parties, in
order to maintain the status quo ante of the parties.  The “status quo ante” is defined as the last
peaceable, uncontested status between the parties.  However, neither the party bringing the
action nor the party defending the action thereby waives its right to
arbitration of any dispute, controversy or claim arising out of or in
connection or relating to this Agreement. 
Notwithstanding anything to the contrary contained in this Section 5.1
or elsewhere in this Agreement, either party may seek relief in the form of
specific performance, injunctive or other equitable relief in order to enforce
the decision of the arbitrator(s).  The
parties agree that in any arbitration commenced pursuant to this Agreement, the
parties shall be entitled to such discovery (including depositions, requests for
the production of documents and interrogatories) as would be available in a
federal district court pursuant to Rules 26 through 37 of the Federal Rules of
Civil Procedure.  In the event that
either party fails to comply with its discovery obligations hereunder, the
arbitrator(s) shall have full power and authority to compel disclosure or
impose sanctions to the full extent of Rule 37 of the Federal Rules of Civil
Procedure.

 

Article VI.

 

NO SET-OFF OR MITIGATION

 

6.1.          No
Set-off by Company.  Executive’s right to receive when due the
payments and other benefits under this Agreement is not subject to any setoff,
counterclaim or legal or equitable defense. 
Time is of the essence in the performance by the Company of its
obligations under this Agreement.  Any
claim which the Company may have against Executive, whether for a breach of
this Agreement or otherwise, shall be brought in a separate action or
proceeding and not as part of any action or proceeding brought by Executive to
enforce any rights against the Company under this Agreement.

 

10

 

6.2.          No
Mitigation. 
Executive shall not have any duty to mitigate the amounts payable by the
Company under this Agreement by seeking new employment or self-employment
following termination.  Except as
otherwise provided in this Agreement, all amounts payable pursuant to this
Agreement shall be paid without reduction for any amounts which may be paid or
payable to Executive as the result of Executive’s employment by another
employer or self-employment.

 

Article VII.

 

CONFIDENTIALITY AND NONCOMPETITION

 

7.1.          Confidential
Information. 
Executive acknowledges that in the course of performing services for the
Company and its Affiliates, he may create, develop, learn of, receive or
contribute non public information, ideas, processes, methods, designs, devices,
inventions, data, models and other information relating to the Company and its
Affiliates or their products, services, businesses, operations, employees or
customers, whether in tangible or intangible form, that the Company or its
Affiliates desire to protect and keep secret and confidential, including trade
secrets and information from third parties that the Company or its Affiliates
are obligated to keep confidential (“Confidential Information”).  Confidential Information shall not
include:  (i) information that is or
becomes generally known through no fault of Executive; (ii) information
received from a third party outside of the Company or its Affiliates that was
disclosed without a breach of any confidentiality obligation; or (iii)
information approved for release on a non-confidential basis by written
authorization of the Company or its Affiliates. 
The Executive recognizes that all such Confidential Information is the
sole and exclusive property of the Company and its Affiliates (or one or more
third parties, as the case may be), and that disclosure or unauthorized use of
Confidential Information would cause irreparable damage to the Company and its
Affiliates.  The Executive agrees that,
except as required by the duties of his employment with any of the Company or
its Affiliates and except in connection with enforcing the Executive’s rights
under this Agreement or if compelled by a court or governmental agency, in each
case provided that prior written notice is given to the Company, he will not,
without the consent of the Company, willfully disseminate or otherwise
disclose, directly or indirectly, any Confidential Information obtained during
his employment with the Company or its Affiliates, and will take all necessary
precautions to prevent disclosure, to any unauthorized individual or entity
inside or outside the Company or its Affiliates, and will not use the
Confidential Information or permit its use for the benefit of Executive or any
other person or entity other than the Company or its Affiliates.  These obligations shall continue during and
after the termination of Executive’s employment.

 

7.2.          Non-Competition.  During the period beginning on the Agreement
Date and ending on the last to occur of the first anniversary of a Termination
Date occurring for any reason during a Post-Change Employment Period, or the
end of the Severance Period, Executive shall not at any time, directly or
indirectly, in any capacity:

 

(a)           engage
or participate in, become employed by, serve as a director of, or render
advisory or consulting or other services in connection with, any Competitive
Business; provided, however, that after the Termination Date this Section 7.2
shall not preclude Executive from being an employee of, or consultant to, any
business unit of a 

 

11

 

Competitive Business if (i) such business
unit does not qualify as a Competitive Business in its own right and (ii)
Executive does not have any direct or indirect involvement in, or
responsibility for, any operations of such Competitive Business that cause it
to qualify as a Competitive Business; or

 

(b)           make
or retain any financial investment, whether in the form of equity or debt, or
own any interest, in any Competitive Business. 
Nothing in this subsection shall, however, restrict Executive from
making an investment in any Competitive Business if such investment does not
(i) represent more than 1% of the aggregate market value of the outstanding
capital stock or debt (as applicable) of such Competitive Business, (ii) give
Executive any right or ability, directly or indirectly, to control or influence
the policy decisions or management of such Competitive Business, and (iii)
create a conflict of interest between Executive’s duties under this Agreement
and his interest in such investment.

 

7.3.          Non-Solicitation.  During the period beginning on the Agreement
Date and ending on the last to occur of the first anniversary of any
Termination Date, or the end of the Severance Period, Executive shall not,
directly or indirectly:

 

(a)           other
than in connection with the good-faith performance of his duties as an officer
or employee of the Company, encourage any employee or agent of the Company or
any Affiliate to terminate his or her relationship with the Company or such
Affiliate;

 

(b)           employ,
engage as a consultant or adviser, or solicit the employment or engagement as a
consultant or adviser, of any employee or agent of the Company (other than by
the Company or its Affiliates), or cause or encourage any Person to do any of
the foregoing;

 

(c)           establish
(or take preliminary steps to establish) a business with, or encourage others
to establish (or take preliminary steps to establish) a business with, any
employee or agent of the Company or any Affiliate; or

 

(d)           interfere
with the relationship of the Company or any Affiliate with, or endeavor to
entice away from the Company or such Affiliate, any Person who or which at any
time during the period commencing one year prior to the Agreement Date was or
is a material customer or material supplier of, or maintained a material
business relationship with, the Company or any Affiliate.

 

7.4.          Intellectual
Property. 
During the period beginning on the first date of Executive’s employment
and ending on the Termination Date, Executive shall disclose immediately to the
Company all ideas, inventions and business plans that he makes, conceives,
creates, authors, reduces to practice, discovers or develops alone or with
others during the course of his employment with any of the Company or its
Affiliates, including any inventions, information, innovations, know-how,
methods, processes, designs, formulas, concepts, software, plans, original
works of authorship, modifications, discoveries, developments, improvements,
computer programs, processes, products or procedures (whether or not
protectable upon application by copyright, patent, trademark, trade secret or
other proprietary rights) (“Work Product”) that:  

 

12

 

(i) relate to the current or reasonably
foreseeable or anticipated future business of the Company or its Affiliates or
any customer or supplier to the Company or its Affiliates or any of the
products or services being developed, manufactured, sold, offered for sale or
otherwise provided or offered by the Company or its Affiliates or that may be
used in relation therewith; or (ii) result from, relate to, or arise out of
tasks assigned to Executive by the Company or its Affiliates; or (iii) result
from, relate to, or arise out of the use of the premises or personal property
(whether tangible or intangible) owned, leased or contracted for by the Company
or its Affiliates.  Executive agrees that
any Work Product shall be the property of the Company and, if subject to
copyright, shall be considered a “work made for hire” within the meaning of the
Copyright Act of 1976, as amended (the “Act”).  If and to the extent that any such Work
Product is found as a matter of law not to be a “work made for hire” within the
meaning of the Act, or is otherwise not owned by such Company as a matter of
law, Executive expressly assigns to such Company all right, title and interest
in and to the Work Product, and all copies thereof, and the copyright, patent,
trademark, trade secret and all intellectual property or other proprietary
rights in the Work Product, without further consideration, free from any claim,
lien for balance due or rights of retention thereto on the part of Executive.

 

(a)           The
Company hereby notifies Executive that the preceding paragraph does not apply
to any inventions for which no equipment, supplies, facility, or trade secret
information of the Company was used and which was developed entirely on the
Executive’s own time, unless:  (i) the
invention relates (a) to the Company’s business, or (b) to the Company’s actual
or demonstrably anticipated research or development, or (ii) the invention
results from any work performed by the Executive for the Company.

 

(b)           Executive
agrees that Executive will, during his employment and at any time thereafter,
at the request and cost of the Company, execute all such documents and perform
all such acts as the Company or its duly authorized agents may reasonably
require:  (i) to apply for, prosecute,
register or otherwise obtain and vest in the name of the Company alone (unless
the Company otherwise directs) all right, title and interest in and to letters
patent, copyrights, trade marks, trade secrets, or other intellectual property,
proprietary or analogous protection in any country throughout the world, and
when so obtained or vested to renew, amend modify, reissue, re-examine,
maintain and restore the same as required; and (ii) to defend any opposition or
other administrative or court proceedings in respect of such applications,
registrations or other intellectual property rights and any opposition
proceedings or petitions or applications for revocation of such letters patent,
copyright and other analogous protection and all other analogous proceedings in
any country throughout the world.

 

(c)           In
the event that the Company is unable, after reasonable effort, to secure
Executive’s signature on any document required for the application,
registration, issuance, prosecution, or maintenance of any letters patent,
copyright or other analogous protection of proprietary or intellectual property
rights relating to any Work Product, whether because of Executive’s physical or
mental incapacity or for any other reason whatsoever, Executive hereby
irrevocably designates and appoints the Company and its duly-authorized
officers and agents as his agent and attorney-in-fact in any country throughout
the world, to act for and on his behalf to execute and file any documents and
to do all other lawfully permitted acts to further the application, registration,
maintenance, prosecution and issuance of letters patent, copyright and other
analogous 

 

13

 

protection of proprietary or intellectual
property rights relating to any Work Products, with the same legal force and
effect as if personally executed by Executive, in any country throughout the
world.

 

7.5.          Reasonableness of
Restrictive Covenants.

 

(a)           Executive
acknowledges that the covenants contained in Sections 7.1, 7.2, 7.3 and 7.4 are
reasonable in the scope of the activities restricted, the geographic area
covered by the restrictions, and the duration of the restrictions, and that
such covenants are reasonably necessary to protect the Company’s legitimate
interests in its Confidential Information and the Work Product and in its
relationships with its employees, customers and suppliers.  Executive further acknowledges such covenants
are essential elements of this Agreement and that, but for such covenants, the
Company would not have entered into this Agreement.

 

(b)           The
Company and Executive have each had the opportunity to consult with their
respective legal counsel and have been advised concerning the reasonableness
and propriety of such covenants. 
Executive acknowledges that his observance of the covenants contained in
Sections 7.1, 7.2, 7.3 and 7.4 will not deprive him of the ability to earn a
livelihood or to support his dependents.

 

Article VIII.

 

NON-EXCLUSIVITY OF RIGHTS

 

8.1.          Waiver
of Certain Other Rights.  To the extent that lump sum cash severance
payments are made to Executive pursuant to Article III, Executive hereby waives
the right to receive severance payments or severance benefits under any other
Plan or agreement of the Company.

 

8.2.          Other
Rights. 
Except as expressly provided in Section 8.1 or elsewhere in this
agreement, this Agreement shall not prevent or limit Executive’s continuing or
future participation in any benefit, bonus, incentive or other Plans provided
by the Company and for which Executive may qualify, nor shall this Agreement
limit or otherwise affect such rights as Executive may have under any other
agreements with the Company.  Amounts
which are vested benefits or which Executive is otherwise entitled to receive
under any Plan and any other payment or benefit required by law at or after the
Termination Date shall be payable in accordance with such Plan or applicable
law except as expressly modified by this Agreement.

 

8.3.          No
Right to Continued Employment.  Nothing in this Agreement shall guarantee the
right of Executive to continue in employment, and the Company retains the right
to terminate the Executive’s employment at any time for any reason or for no
reason.

 

14

 

Article IX.

 

MISCELLANEOUS

 

9.1.          No
Assignability. 
This Agreement is personal to Executive and without the prior written
consent of the Company shall not be assignable by Executive otherwise than
under Section 9.3.  This Agreement shall
inure to the benefit of and be enforceable by Executive’s legal representatives.

 

9.2.          Successors.  This Agreement shall inure to the benefit of
and be binding upon the Company and its successors and assigns.  The Company will require any successor to all
or substantially all of the business or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such
succession had taken place.  Any
successor to the business or assets of the Company which assumes or agrees to
perform this Agreement by operation of law, contract, or otherwise shall be
jointly and severally liable with the Company under this Agreement as if such
successor were the Company.

 

9.3.          Payments
to Beneficiary. 
If Executive dies before receiving amounts to which Executive is
entitled under this Agreement, such amounts shall be paid in a lump sum to one
or more beneficiaries designated in writing by Executive (each, a “Beneficiary”).  If none is so designated, the Executive’s
estate shall be his or her Beneficiary.

 

9.4.          Non-Alienation
of Benefits. 
Benefits payable under this Agreement shall not be subject in any manner
to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
charge, garnishment, execution or levy of any kind, either voluntary or
involuntary, before actually being received by Executive, and any such attempt
to dispose of any right to benefits payable under this Agreement shall be void.

 

9.5.          Severability.  If any one or more portions of this Agreement
are declared by any court or governmental authority to be unlawful or invalid,
such unlawfulness or invalidity shall not serve to invalidate any portion not
so declared to be unlawful or invalid. 
Any portion declared to be unlawful or invalid shall be construed so as
to effectuate the terms of such portion to the fullest extent possible while
remaining lawful and valid.

 

9.6.          Amendments.  This Agreement shall not be amended or
modified except by written instrument executed by the Company and Executive.

 

9.7.          Notices. All notices and other communications
under this Agreement shall be in writing and delivered by hand, by
nationally-recognized delivery service that promises overnight delivery, or by
first-class registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

 

If to Executive, to Executive at his most recent home address on file
with the Company.

 

15

 

If to Company:

 

SeeBeyond Technology Corporation

800 East Royal Oaks Drive

Monrovia, CA 91016

Attention:  General Counsel

 

or to such
other address as either party shall have furnished to the other in
writing.  Notice and communications shall
be effective when actually received by the addressee.

 

9.8.          Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together constitute one and the same instrument.

 

9.9.          Governing
Law.  This
Agreement shall be interpreted and construed in accordance with the laws of the
State of California, without regard to its choice of law principles.

 

9.10.        Captions.  The captions of this Agreement are not a part
of the provisions hereof and shall have no force or effect.

 

9.11.        Number
and Gender. 
Wherever appropriate, the singular shall include the plural, the plural
shall include the singular, and the masculine shall include the feminine.

 

9.12.        Tax
Withholding. 
The Company may withhold from any amounts payable under this Agreement
any Taxes that are required to be withheld pursuant to any applicable law or
regulation and may report all such amounts payable to such authority as is
required by any applicable law or regulation.

 

9.13.        Waiver.  Executive’s failure to insist upon strict
compliance with any provision of this Agreement shall not be deemed a waiver of
such provision or any other provision of this Agreement.  A waiver of any provision of this Agreement
shall not be deemed a waiver of any other provision, and any waiver of any
default in any such provision shall not be deemed a waiver of any later default
thereof or of any other provision.

 

9.14.        Entire
Agreement. 
This Agreement contains the entire understanding of the Company and
Executive with respect to its subject matter and supersedes any prior
agreement, whether written or oral, dealing with the subject matter hereof.

 

16

 

IN WITNESS WHEREOF, Executive and SeeBeyond
Technology Corporation have executed this Change of Control Employment
Agreement as of the date first above written.

 

	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /S/ JAMES DEMETRIADES

  	
   

  
	
   

  	
   

  	
  James Demetriades

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SEEBEYOND TECHNOLOGY
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /S/ BARRY J.
  PLAGA

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
  Chief
  Financial Officer

  	
   

  
						

 

17Exhibit 10.2

 

SEEBEYOND TECHNOLOGY CORPORATION

 

CHANGE OF CONTROL EMPLOYMENT AGREEMENT

 

FOR

 

BARRY PLAGA

 

 

TABLE OF
CONTENTS

 

	
  Article I. Certain Definitions

  	
   

  
	
  1.1.

  	
  “Accrued Obligations”

  	
   

  
	
  1.2.

  	
  “Affiliate”

  	
   

  
	
  1.3.

  	
  “Agreement Date”

  	
   

  
	
  1.4.

  	
  “Agreement Term”

  	
   

  
	
  1.5.

  	
  “Article”

  	
   

  
	
  1.6.

  	
  “Base Salary”

  	
   

  
	
  1.7.

  	
  “Beneficial Owner”

  	
   

  
	
  1.8.

  	
  “Beneficiary”

  	
   

  
	
  1.9.

  	
  “Board”

  	
   

  
	
  1.10.

  	
  “Bonus”

  	
   

  
	
  1.11.

  	
  “Cause”

  	
   

  
	
  1.12.

  	
  “Change of Control”

  	
   

  
	
  1.13.

  	
  “Change of Control Date”

  	
   

  
	
  1.14.

  	
  “Code”

  	
   

  
	
  1.15.

  	
  “Common Stock”

  	
   

  
	
  1.16.

  	
  “Company”

  	
   

  
	
  1.17.

  	
  “Competitive Business”

  	
   

  
	
  1.18.

  	
  “Continuity of Ownership”

  	
   

  
	
  1.19.

  	
  “Disability”

  	
   

  
	
  1.20.

  	
  “Exchange Act”

  	
   

  
	
  1.21.

  	
  “Good Reason”

  	
   

  
	
  1.22.

  	
  “including”

  	
   

  
	
  1.23.

  	
  “Incumbent Directors”

  	
   

  
	
  1.24.

  	
  “Notice of Termination”

  	
   

  
	
  1.25.

  	
  “Performance Period”

  	
   

  
	
  1.26.

  	
  “Person”

  	
   

  
	
  1.27.

  	
  “Plans”

  	
   

  
	
  1.28.

  	
  “Post-Change Employment Period”

  	
   

  
	
  1.29.

  	
  “Pro-rata Bonus”

  	
   

  
	
  1.30.

  	
  “Reorganization Transaction”

  	
   

  
	
  1.31.

  	
  “SEC Person”

  	
   

  
	
  1.32.

  	
  “Section”

  	
   

  
	
  1.33.

  	
  “Severance Period”

  	
   

  
	
  1.34.

  	
  “Stock Options”

  	
   

  
	
  1.35.

  	
  “Stock Plan”

  	
   

  
	
  1.36.

  	
  “Surviving Corporation”

  	
   

  
	
  1.37.

  	
  “Target Bonus”

  	
   

  
	
  1.38.

  	
  “Termination Date”

  	
   

  
	
  1.39.

  	
  “Termination of Employment”

  	
   

  
	
  1.40.

  	
  “Voting Securities”

  	
   

  
	
  1.41.

  	
  “Welfare Benefits”

  	
   

  

 

i

 

	
  Article II. Benefits Upon a Change of
  Control

  	
   

  
	
  2.1.

  	
  Position and Duties

  	
   

  
	
  2.2.

  	
  Compensation

  	
   

  
	
  2.3.

  	
  Vesting of Stock Options

  	
   

  
	
   

  	
   

  	
   

  
	
  Article III. Company’s Obligations
  Upon Certain Terminations of Employment

  	
   

  
	
  3.1.

  	
  Termination Without Cause or For Good
  Reason Not Related To or In Anticipation Of a Change of Control

  	
   

  
	
  3.2.

  	
  Termination Without Cause or For Good
  Reason Related To or In Anticipation of a Change of Control

  	
   

  
	
  3.3.

  	
  Time of Payment

  	
   

  
	
  3.4.

  	
  Waiver and Release

  	
   

  
	
  3.5.

  	
  Termination for Cause or Other Than for
  Good Reason

  	
   

  
	
  3.6.

  	
  Disability or Death

  	
   

  
	
  3.7.

  	
  Notice of Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  Article IV. Limitation on Payments by
  the Company

  	
   

  
	
  4.1.

  	
  Limitation

  	
   

  
	
   

  	
   

  	
   

  
	
  Article V. Arbitration

  	
   

  
	
  5.1.

  	
  Binding Arbitration

  	
   

  
	
   

  	
   

  	
   

  
	
  Article VI. No Set-off or Mitigation

  	
   

  
	
  6.1.

  	
  No Set-off by Company

  	
   

  
	
  6.2.

  	
  No Mitigation

  	
   

  
	
   

  	
   

  	
   

  
	
  Article VII. Confidentiality and
  Noncompetition

  	
   

  
	
  7.1.

  	
  Confidential Information

  	
   

  
	
  7.2.

  	
  Non-Competition

  	
   

  
	
  7.3.

  	
  Non-Solicitation

  	
   

  
	
  7.4.

  	
  Intellectual Property

  	
   

  
	
  7.5.

  	
  Reasonableness of Restrictive Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  Article VIII. Non-Exclusivity of
  Rights

  	
   

  
	
  8.1.

  	
  Waiver of Certain Other Rights

  	
   

  
	
  8.2.

  	
  Other Rights

  	
   

  
	
  8.3.

  	
  No Right to Continued Employment

  	
   

  
	
   

  	
   

  	
   

  
	
  Article IX. Miscellaneous

  	
   

  
	
  9.1.

  	
  No Assignability

  	
   

  
	
  9.2.

  	
  Successors

  	
   

  
	
  9.3.

  	
  Payments to Beneficiary

  	
   

  
	
  9.4.

  	
  Non-Alienation of Benefits

  	
   

  
	
  9.5.

  	
  Severability

  	
   

  
	
  9.6.

  	
  Amendments

  	
   

  
	
  9.7.

  	
  Notices

  	
   

  
	
  9.8.

  	
  Counterparts

  	
   

  

 

ii

 

	
  9.9.

  	
  Governing Law

  	
   

  
	
  9.10.

  	
  Captions

  	
   

  
	
  9.11.

  	
  Number and Gender

  	
   

  
	
  9.12.

  	
  Tax Withholding

  	
   

  
	
  9.13.

  	
  Waiver

  	
   

  
	
  9.14.

  	
  Entire Agreement

  	
   

  

 

iii

 

SeeBeyond
Technology Corporation

 

CHANGE
OF CONTROL EMPLOYMENT AGREEMENT

 

THIS AGREEMENT
dated as of February 23, 2005 (the “Agreement Date”) is made by and
between SeeBeyond Technology Corporation, a Delaware corporation (together with
all successors thereto, the “Company”), and Barry Plaga (“Executive”), an
individual resident of California.

 

RECITALS

 

The Company
has determined that it is in the best interests of the Company and its
stockholders to assure that the Company will have the continued services of
Executive.  The Company also believes it
is imperative to reduce the distraction of Executive that would result from the
personal uncertainties caused by a pending or threatened change of control of
the Company, to encourage Executive’s full attention and dedication to the
Company, and to provide Executive with compensation and benefits arrangements
upon a change of control which ensure that the expectations of Executive will
be satisfied and are competitive with those of similarly-situated businesses.  This Agreement is intended to accomplish
these objectives.

 

The Executive
previously entered into a letter agreement dated October 4, 1999, as
amended (“Prior Agreement”) with the Company providing certain benefits upon a
change of control.  This Agreement
supersedes the third paragraph of the Prior Agreement.

 

ARTICLE I.

 

CERTAIN DEFINITIONS

 

As used in
this Agreement, the terms specified below shall have the following meanings:

 

1.1.                              “Accrued Obligations” means, as of any date, the sum
of Executive’s (a) Base Salary that is accrued but not yet paid as of the
Termination Date, (b) Bonus earned but not yet paid with respect to any
Performance Period ended prior to the Change of Control Date, (c) accrued
but unpaid paid vacation or paid time off, and (d) any other amounts and
benefits which are then due to be paid or provided to Executive by the Company,
but have not yet been paid or provided.

 

1.2.                              “Affiliate” means any Person that directly or indirectly controls, is
controlled by, or is under common control with, the Company.  For purposes of this definition the term “control”
with respect to any Person means the power to direct or cause the direction of
management or policies of such Person, directly or indirectly, whether through
the ownership of Voting Securities, by contract or otherwise.

 

1.3.                              “Agreement Date” has the meaning defined for that term in the introduction
to this Agreement.

 

 

1.4.                              “Agreement Term” means the period commencing on the Agreement Date and
continuing thereafter so long as Executive is employed by the Company or by a
successor to the Company that assumes this Agreement pursuant to Section 9.2.

 

1.5.                              “Article” means an article of this Agreement.

 

1.6.                              “Base Salary” has the meaning defined for that term in Section 2.2(a).

 

1.7.                              “Beneficial Owner” means such term as defined in
Rule 13d-3 under the Exchange Act.

 

1.8.                              “Beneficiary” has the meaning defined for that term in Section 10.3.

 

1.9.                              “Board” means the Board of Directors of
the Company, or, from and after the effective date of a Reorganization
Transaction, the Board of Directors of the Surviving Corporation.

 

1.10.                        “Bonus” has the meaning defined for
that term in Section 2.2(b).

 

1.11.                        “Cause” means any one or more of the
following:

 

(a)                                  Executive’s willful violation of
any law or regulation applicable to the business of the Company;

 

(b)                                 Executive’s conviction of or
plea of no contest to any felony;

 

(c)                                  Executive’s commission of any
willful act involving moral turpitude or common law fraud whether or not
related to the business of the Company;

 

(d)                                 Executive’s willful misconduct
that is materially injurious to the financial condition or business reputation
of the Company or otherwise is materially injurious to the Company;

 

(e)                                  Any act of gross negligence in
Executive’s performance of his duties as an employee;

 

(f)                                    Any violation by Executive of
the “Behaviors at Work” provisions of the Company’s Employee Manual; and

 

provided,
however that an act or omission described in clause (e) or (f) shall not constitute
Cause unless the Company first gives Executive 30 days’ advance written notice
of such act or omission that specifically refers to this Section, and
thereafter shall not constitute Cause if Executive cures such act or omission
to the fullest extent that it is curable.

 

1.12.                        “Change of Control” means, except as otherwise
provided below, the occurrence of any one or more of the following:

 

(a)                                  any SEC Person becomes the
Beneficial Owner of 50% or more of the Common Stock or of Voting Securities
representing 50% or more of the combined voting power of all Voting Securities
of the Company; or

 

2

 

(b)                                 the Incumbent Directors
(determined using the Agreement Date as the baseline date) cease for any reason
to constitute at least a majority of the Board; or

 

(c)                                  consummation of a merger,
reorganization, consolidation, or similar transaction (any of the foregoing, a “Reorganization
Transaction”) where the Continuity of Ownership is not more than 50%; or

 

(d)                                 consummation of a plan or agreement
for the sale or other disposition of all or substantially all of the
consolidated assets of the Company; or

 

(e)                                  approval by the Company’s
stockholders of a plan of liquidation of the Company.

 

A Change of
Control shall not occur with respect to Executive if, in advance of such event,
Executive agrees in writing that such event shall not constitute a Change of
Control.

 

1.13.                        “Change of Control Date” means the date on which a
Change of Control first occurs during the Agreement Term.

 

1.14.                        “Code” means the Internal Revenue Code
of 1986, as amended.  References to
particular provisions of the Code include references to successor provisions.

 

1.15.                        “Common Stock” means the common stock of the Company.

 

1.16.                        “Company” has the meaning defined for that term in the introductory
paragraph to this Agreement and includes any successor to a Company.

 

1.17.                        “Competitive Business” means as of any date (including
during Severance Period) any Person (and any branch, office or operation
thereof) that engages in, or proposes to engage in:

 

(a)                                  the development and deployment
of enterprise application integration (EAI) and composite applications,
including but not limited to IT convergence, business process management,
single view applications, multi-channel integration, and business activity
monitoring; or

 

(b)                                 any other business that as of
such date is a direct and material competitor of a Company and its Affiliates
to the extent that prior to the Date of Termination any of the Company or its
Affiliates engaged at any time within 12 months in or had under active
consideration a proposal to engage in such competitive business;

 

and that is
located anywhere in the United States or anywhere outside of the United States
where such Company or its Affiliates is then engaged in, or has under active
consideration a proposal to engage in, any of such activities.

 

1.18.                        “Continuity of Ownership” of a stated percentage means
the Persons who were the direct or indirect owners of the outstanding Common
Stock and Voting Securities of the Company immediately before a Reorganization
Transaction became, immediately after the consummation of the Reorganization
Transaction, the direct or indirect owners of both the stated

 

3

 

percentage of the then-outstanding common stock of the Surviving
Corporation and Voting Securities representing the stated percentage of the
combined voting power of the then-outstanding Voting Securities of the
Surviving Corporation, in substantially the same respective proportions as such
Persons’ ownership of the Common Stock and Voting Securities of the Company
immediately before the Reorganization Transaction.

 

1.19.                        “Disability” means (i) if Executive is covered by a disability income
Plan of the Company, “Disability” as defined for purposes of such Plan, or (ii)
if Executive is not covered by a disability income Plan of the Company, a
physical or mental impairment that in the medical judgment of a physician
acceptable to Executive has lasted or is expected to last for at least six
months and renders the Executive incapable, with or without accommodation, of
performing the material duties of his employment with the Company.

 

1.20.                        “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

1.21.                        “Good Reason” means the occurrence of any one or more of the following
actions or omissions:

 

(a)                                  any material adverse change in
the title, duties, and reporting chain of Executive as in effect on the
Agreement Date or, after a Change of Control, as required by Section 2.1;

 

(b)                                 any material reduction in Base
Salary or Bonus opportunity as in effect on the Agreement Date or, after a
Change of Control, as required by Section 2.2;

 

(c)                                  requiring Executive without his
consent to be based at any office or location more than 35 miles from Executive’s
business office or location as of the Agreement Date or, after a Change of
Control, as of the Change of Control Date; and

 

(d)                                 any other material breach of
this Agreement by the Company.

 

1.22.                        “including” means including without limitation.

 

1.23.                        “Incumbent Directors” means, as of any specified
baseline date, individuals then serving as members of the Board who were
members of the Board as of the date immediately preceding such baseline date;
provided that any subsequently-appointed or elected member of the Board whose
election, or nomination for election, by stockholders of the Company or the
Surviving Corporation, as applicable, was approved by a vote or written consent
of at least a majority of the directors then comprising the Incumbent Directors
shall also thereafter be considered an Incumbent Director.

 

1.24.                        “Notice of Termination” means a written notice
containing (i) the specific termination provision in this Agreement relied upon
by the party giving such notice, (ii) in reasonable detail the specific facts
and circumstances claimed to provide a basis for such Termination of
Employment, and (iii) if the Termination Date is other than the date of receipt
of such Notice of Termination, the Termination Date.

 

4

 

1.25.                        “Performance Period” means each period of time
designated in accordance with any Bonus Plan, or in the absence of such Bonus
Plan or any such designated period of time, each calendar year.

 

1.26.                        “Person” means any individual, sole proprietorship, partnership,
joint venture, limited liability company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, entity or
government instrumentality, division, agency, body or department.

 

1.27.                        “Plans” means plans, programs,
policies, practices or procedures of the Company.

 

1.28.                        “Post-Change Employment
Period”
means the period commencing on the Change of Control Date and ending on the
third annual anniversary of the Change of Control Date.

 

1.29.                        “Pro-rata Bonus” means an amount equal to the product of Executive’s Target
Bonus (for the Performance Period in which the Termination Date occurs)
multiplied by a fraction, the numerator of which is the number of days elapsed
in the Performance Period through the Termination Date, and the denominator of
which is the number of days in the Performance Period.

 

1.30.                        “Reorganization Transaction” has the meaning defined for
that term in clause (c) of the definition of “Change of Control.”

 

1.31.                        “SEC Person” means any person (as such term is used in Rule 13d-5 under
the Exchange Act) or group (as such term is defined in Sections 3(a)(9) and
13(d)(3) of the Exchange Act), other than an Affiliate or any employee benefit
plan (or any related trust) of the Company or any of its Affiliates.

 

1.32.                        “Section” means, unless the context otherwise requires, a section of
this Agreement.

 

1.33.                        “Severance Period” means, in respect of an
Executive entitled to a payment under Section 3.1(b) or 3.2(c), the period
described in Section 3.1(b)(ii) or 3.2(c)(ii), whichever is applicable.

 

1.34.                        “Stock Options” means stock options, stock appreciation rights, and similar
incentive awards granted pursuant to Stock Plan or any similar plan or
successor plan.

 

1.35.                        “Stock Plan” means the SeeBeyond Technology Corporation 1998 Stock Plan
as amended from time to time.

 

1.36.                        “Surviving Corporation” means the corporation resulting
from a Reorganization Transaction or, if securities representing at least 50%
of the aggregate voting power of such resulting corporation is directly or
indirectly owned by another corporation, such other corporation.

 

1.37.                        “Target Bonus” means the amount Executive would
have been entitled to receive for the applicable Performance Period if the
performance goals were achieved at the target (or “plan”) level as of the end
of the Performance Period; provided, however, that any reduction in

 

5

 

Executive’s Base Salary or Bonus opportunity that would qualify as Good
Reason shall be disregarded for purposes of this definition.

 

1.38.                        “Termination Date” means the date of the receipt
of the Notice of Termination by Executive
(if such Notice is given by the Company) or by the Company (if such Notice is
given by Executive), or any later date, not more than 15 days after the giving
of such Notice, specified in such notice as of which Executives’ employment
shall be terminated; provided, however, that if Executive’s employment is
terminated by reason of death or Disability or if no Notice of Termination is
given, the Termination Date shall be the last date on which Executive is
employed by the Company.

 

1.39.                        “Termination of Employment” means any termination of
Executive’s employment with the Company and its Affiliates (determined as of
date of such termination), whether such termination is initiated by the Company
or by Executive.

 

1.40.                        “Voting Securities” means securities of a
corporation that are entitled to vote generally in the election of directors of
the corporation.

 

1.41.                        “Welfare Benefits” means welfare benefits, whether
or not provided under a Plan, including medical, prescription, vision and
dental benefits.

 

ARTICLE II.

 

BENEFITS UPON A CHANGE OF CONTROL

 

2.1.                              Position and Duties.  During the Post-Change Employment Period,
Executive’s position (including offices, titles, reporting requirements and
responsibilities) shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned at any time during
the 90-day period immediately before the Change of Control Date,
(ii) Executive’s services shall be performed at the location where
Executive was employed immediately before the Change of Control Date or any
other location no more than 35 miles from such former location, and (iii)
Executive shall devote Executive’s full attention and time to the business and
affairs of the Company and use Executive’s best efforts to perform those duties
in all material respects commensurate with the duties performed during the
90-day period immediately before the Change of Control Date.

 

2.2.                              Compensation.  During the Post-Change Employment Period, the
Company shall pay or cause to be paid to Executive (i) an annual base salary in
cash, which shall be paid in a manner consistent with the Company’s payroll
practices in effect immediately before the Change of Control Date, at an annual
rate not less than 12 times the highest monthly base salary paid or payable to
Executive by the Company in respect of the 12-month period immediately before
the Change of Control Date (such annual rate of salary, the “Base Salary”);
(ii) provide to Executive the opportunity to receive payment of a bonus (the “Bonus”)
with a bonus opportunity no less than, and target (or “plan”) performance goals
substantially comparable to, those in effect immediately prior to the Change of
Control Date for each Performance Period which ends during the Post-Change
Employment Period; and (iii) Executive and Executive’s family shall be eligible
to participate in, and receive all benefits under, Welfare Benefits under the
same plans (including provider networks) as those applicable to Executive
immediately before the Change of Control

 

6

 

Date.  The costs of such Welfare
Benefits to Executive shall not exceed the cost of such benefits to actively
employed peer executives of the Company as applicable from time to time.

 

2.3.                              Vesting of Stock Options.  Upon the Change of Control Date, fifty
percent (50%) of Executive’s outstanding Stock Options that are not otherwise
vested and exercisable immediately before the Change of Control shall become
fully vested and exercisable. 
Thereafter, Executive’s unvested outstanding Stock Options not becoming
vested and exercisable pursuant to this Section 2.3 shall become vested
and exercisable on the schedule set forth in the Award (as defined in the
Stock Plan) with the number of Stock Options becoming vested and exercisable
shall be the same percentage of the unvested Stock Options remaining after
applying this Section 2.3 as such schedule provided for the vesting
of unvested Stock Options before applying this Section 2.3.

 

ARTICLE III.

 

COMPANY’S OBLIGATIONS UPON CERTAIN TERMINATIONS OF EMPLOYMENT

 

3.1.                              Termination Without Cause or For
Good Reason Not Related To or In Anticipation Of a Change of Control.  If during the Agreement Term, the Company
terminates Executive’s employment other than for Cause or Disability, or
Executive terminates employment for Good Reason, and Section 3.2 does not
apply, the Company shall pay or provide to Executive:

 

(a)                                  Accrued Obligations.  A lump-sum cash amount equal to all Accrued
Obligations (reduced (but not below zero) by that portion, if any, of any such
Accrued Obligations previously paid to Executive whether pursuant to this
Agreement or otherwise.

 

(b)                                 Severance Benefit.  A lump-sum cash amount equal to (i) the
highest monthly base salary paid or payable to Executive by the Company in
respect of the 12-month period immediately before the Termination Date,
multiplied by (ii) a number equal to (A) one month for each year of service
(pro-rated for partial years of service) plus (B) six months, up to a total
maximum of 18 months.

 

3.2.                              Termination Without Cause or For
Good Reason Related To or In Anticipation of a Change of Control.  If, in anticipation of a Change of Control or
thereafter during the Post-Change Employment Period the Company terminates
Executive’s employment other than for Cause or Disability, or Executive
terminates employment for Good Reason, the Company shall pay or provide to
Executive:

 

(a)                                  Accrued Obligations.  A lump-sum cash amount equal to all Accrued
Obligations, reduced (but not below zero) by that portion, if any, of any such
Accrued Obligations for the previously paid to Executive, whether pursuant to
this Agreement or otherwise;

 

(b)                                 Severance Benefit.  A lump-sum cash amount equal to (i) sum
(A) of the highest monthly Base Salary paid or payable to Executive by the
Company in respect of the 12-month period immediately before the Termination
Date, plus (B) the monthly

 

7

 

equivalent of Executive’s Target Bonus for
the Performance Period which includes the Termination Date (or, if greater, for
the Performance Period which includes the Change of Control Date), multiplied
by (ii) a number equal to (A) one month for each year of service (pro-rated for
partial years of service) plus (B) six months, up to a total maximum of 18
months.

 

(c)                                  Pro-rata Bonus for Performance
Period of Termination.  A lump-sum cash amount equal to Executive’s
Pro-rata Bonus reduced (but not below zero) by the amount of any Bonus paid to
Executive with respect to the Performance Period in which the Termination Date
occurs, whether paid pursuant to this Agreement or otherwise;

 

(d)                                 Unvested Plan Benefits.  A lump-sum cash amount equal to the amount,
if any, forfeited by Executive upon the Termination of Employment under any
401(k) plan or other tax-qualified pension or profit sharing plan maintained by
the Company.

 

(e)                                  Continuation of Welfare Benefits.  The Company shall continue, to provide to
Executive and Executive’s family, Welfare Benefits under the same plans
(including the same provider networks) as those applicable to Executive
immediately before the Change of Control Date. 
The costs of such Welfare Benefits to Executive shall not exceed the
cost of such benefits to actively employed peer executives of the Company as
applicable from time to time.  Executive’s
rights under this Section shall be in addition to, and not in lieu of, any
post-termination continuation coverage or conversion rights Executive may have
pursuant to applicable law, including continuation coverage required by Section 4980
of the Code.  These Welfare Benefits
shall be secondary to any similar welfare benefits provided by the Executive’s
subsequent employer (if any).

 

(f)                                    Indemnification.  The Executive shall be indemnified and held
harmless by the Company to the greatest extent permitted under applicable
Delaware law (or the law of the State of incorporation of Company, any
successor or Surviving Corporation) and the Company’s respective by-laws as
such exist on the Agreement Date if the Executive was, is, or is threatened to
be, made a party to any proceeding whether civil, criminal, administrative or
investigative, and whether formal or informal, by reason of Executive’s status
as an actual or potential director, officer, employee, agent, or fiduciary of a
Company or any other entity (“Proceeding”), against all expenses (including all
reasonable attorneys’ fees) and all claims, damages, liabilities and losses
incurred or suffered by the Executive. 
The Company shall advance reasonable expenses, including but not limited
to reasonable attorneys fees and costs, to Executive or pay such expenses for
Executive, all in advance of the final disposition of any such matter, upon the
written request of Executive and a written undertaking by Executive to repay
such amounts if it is ultimately determined that Executive is not entitled to
indemnification.

 

(g)                                 Anticipation of a Change of
Control.  For purposes of this Agreement a Termination
of Employment is in anticipation of a Change of Control only if it is in
anticipation of a Change of Control that actually occurs within one year of the
Termination of Employment.  Any payment
or benefit required by this Section for a Termination of Employment in
anticipation of a Change of Control that is not paid or provided at such
Termination of Employment shall be paid or provided immediately upon

 

8

 

such Change of Control, retroactive to the
Termination of Employment, except as otherwise required by Section 3.3.

 

3.3.                              Time of Payment.  Any lump-sum cash payment required by this Article III
shall be made not later than 30 days after Termination of Employment, except
that if (i) Executive is a key employee (as determined under Section 416(i)
of the Code without regard to paragraph (5) thereof) of the Company or
Surviving Corporation, (ii) any common stock of the Company or Surviving
Corporation is publicly traded on an established securities market, and (iii) a
portion of such payment is deferred compensation within the meaning of Section 409A
of the Code, the portion of such lump-sum cash payment required by this Article III
that is deferred compensation shall be made on the first business day after the
date which is 6 months after the Termination Date (or, if earlier, upon the
death of the Executive), to the extent necessary to comply with Section 409A
after applying all applicable transitional rules.

 

3.4.                              Waiver and Release.  The Company shall have no obligation to
Executive under this Article III unless and until Executive executes a
release and waiver of the Company, in form and substance satisfactory to the
Company, and the period (if any) during which Executive may revoke such release
and waiver has expired without revocation.

 

3.5.                              Termination for Cause or Other
Than for Good Reason.  If the Company terminates Executive’s
employment for Cause, or Executive elects to retire or otherwise terminate
employment other than for Good Reason, the Company’s sole obligation to
Executive under this Agreement shall be to pay Executive, pursuant to the
Company’s then-effective Plans, a lump-sum cash amount equal to all Accrued
Obligations determined as of the Termination Date.

 

3.6.                              Disability or Death.  If Executive’s employment is terminated by
reason of Executive’s death or Disability, the Company’s sole obligations to
Executive under this Agreement shall be to pay Executive or Executive’s
Beneficiary, pursuant to the Company’s then-effective Plans, a lump-sum cash
amount equal to all Accrued Obligations, and to provide Executive or Executive’s
Beneficiary Disability, survivor and other benefits, if any, that are not less
than the most favorable survivor and other benefits then available under plans
of the Company.

 

3.7.                              Notice of Termination.  Any Termination of Employment of Executive by
the Company for any reason or by the Executive for Good Reason shall be
communicated to the other and effective pursuant to a Notice of Termination.

 

ARTICLE IV.

 

LIMITATION ON PAYMENTS BY THE COMPANY

 

4.1.                              Limitation.  In the event that the Company’s independent
tax counsel confirm in writing to the Company and Executive that payments under
this Agreement, together with any other payments to Executive from the Company
that are “parachute payments” within the meaning of Section 280G of the
Code (“Potential Parachute Payments”) would otherwise exceed three times
the Executive’s “base amount” as defined in Section 280G of the Code, then
notwithstanding anything to the contrary in this Agreement the payments under
this Agreement

 

9

 

shall be reduced to an amount such that the Potential Parachute Payments
do not exceed 2.99 times the Executive’s base amount.  Any reduction in payments required by this Section 4.1
shall be applied to such payments and benefits under this Agreement as the
Company in its sole discretion deems necessary, shall be communicated to
Executive in writing prior to the date the first reduced payment or benefit
would otherwise be due, shall be accompanied by the certification of the
Company’s independent auditors to Executive that the reductions are in the
minimum amount required to comply with this Section 4.1.

 

ARTICLE V.

 

ARBITRATION

 

5.1.                              Binding Arbitration.  Any dispute, controversy or claim arising out
of or in connection with or relating to this Agreement or any breach or alleged
breach thereof, or any benefit or alleged benefit hereunder, shall be submitted
to and settled by binding arbitration, in accordance with the American
Arbitration Association rules (“AAA Rules”) for the resolution of
employment disputes.  Any award rendered
shall be final and conclusive upon the parties and a judgment thereon may be
entered in the highest court of a forum, state or federal, having
jurisdiction.  The expenses of the
arbitration shall be borne according to AAA Rules and applicable law.  No arbitration shall be commenced after the
date when institution of legal or equitable proceedings based upon such subject
matter would be barred by the applicable statute of limitations.  Notwithstanding anything to the contrary
contained in this Section 5.1 or elsewhere in this Agreement, either party
may bring an action in any applicable court having jurisdiction of the parties,
in order to maintain the status quo ante of the parties.  The “status quo ante” is defined as the last
peaceable, uncontested status between the parties.  However, neither the party bringing the
action nor the party defending the action thereby waives its right to
arbitration of any dispute, controversy or claim arising out of or in
connection or relating to this Agreement. 
Notwithstanding anything to the contrary contained in this Section 5.1
or elsewhere in this Agreement, either party may seek relief in the form of
specific performance, injunctive or other equitable relief in order to enforce
the decision of the arbitrator(s).  The
parties agree that in any arbitration commenced pursuant to this Agreement, the
parties shall be entitled to such discovery (including depositions, requests
for the production of documents and interrogatories) as would be available in a
federal district court pursuant to Rules 26 through 37 of the Federal Rules of
Civil Procedure.  In the event that
either party fails to comply with its discovery obligations hereunder, the
arbitrator(s) shall have full power and authority to compel disclosure or
impose sanctions to the full extent of Rule 37 of the Federal Rules of Civil
Procedure.

 

ARTICLE VI.

 

NO SET-OFF OR MITIGATION

 

6.1.                              No Set-off by Company.  Executive’s right to receive when due the
payments and other benefits under this Agreement is not subject to any setoff,
counterclaim or legal or equitable defense. 
Time is of the essence in the performance by the Company of its
obligations under this Agreement.  Any
claim which the Company may have against Executive, whether for a breach of
this Agreement or otherwise, shall be brought in a separate action or
proceeding and

 

10

 

not as part of any action or proceeding brought by Executive to enforce
any rights against the Company under this Agreement.

 

6.2.                              No Mitigation.  Executive shall not have any duty to mitigate
the amounts payable by the Company under this Agreement by seeking new
employment or self-employment following termination.  Except as otherwise provided in this
Agreement, all amounts payable pursuant to this Agreement shall be paid without
reduction for any amounts which may be paid or payable to Executive as the
result of Executive’s employment by another employer or self-employment.

 

ARTICLE VII.

 

CONFIDENTIALITY AND NONCOMPETITION

 

7.1.                              Confidential Information.  Executive acknowledges that in the course of
performing services for the Company and its Affiliates, he may create, develop,
learn of, receive or contribute non public information, ideas, processes,
methods, designs, devices, inventions, data, models and other information
relating to the Company and its Affiliates or their products, services,
businesses, operations, employees or customers, whether in tangible or
intangible form, that the Company or its Affiliates desire to protect and keep
secret and confidential, including trade secrets and information from third
parties that the Company or its Affiliates are obligated to keep confidential (“Confidential
Information”).  Confidential
Information shall not include:  (i)
information that is or becomes generally known through no fault of Executive;
(ii) information received from a third party outside of the Company or its
Affiliates that was disclosed without a breach of any confidentiality
obligation; or (iii) information approved for release on a non-confidential
basis by written authorization of the Company or its Affiliates.  The Executive recognizes that all such
Confidential Information is the sole and exclusive property of the Company and
its Affiliates (or one or more third parties, as the case may be), and that
disclosure or unauthorized use of Confidential Information would cause
irreparable damage to the Company and its Affiliates.  The Executive agrees that, except as required
by the duties of his employment with any of the Company or its Affiliates and
except in connection with enforcing the Executive’s rights under this Agreement
or if compelled by a court or governmental agency, in each case provided that
prior written notice is given to the Company, he will not, without the consent
of the Company, willfully disseminate or otherwise disclose, directly or
indirectly, any Confidential Information obtained during his employment with
the Company or its Affiliates, and will take all necessary precautions to
prevent disclosure, to any unauthorized individual or entity inside or outside
the Company or its Affiliates, and will not use the Confidential Information or
permit its use for the benefit of Executive or any other person or entity other
than the Company or its Affiliates. 
These obligations shall continue during and after the termination of
Executive’s employment.

 

7.2.                              Non-Competition.  During the period beginning on the Agreement
Date and ending on the last to occur of the first anniversary of a Termination
Date occurring for any reason during a Post-Change Employment Period, or the
end of the Severance Period, Executive shall not at any time, directly or
indirectly, in any capacity:

 

11

 

(a)                                  engage or participate in, become
employed by, serve as a director of, or render advisory or consulting or other
services in connection with, any Competitive Business; provided, however, that
after the Termination Date this Section 7.2 shall not preclude Executive
from being an employee of, or consultant to, any business unit of a Competitive
Business if (i) such business unit does not qualify as a Competitive Business
in its own right and (ii) Executive does not have any direct or indirect
involvement in, or responsibility for, any operations of such Competitive
Business that cause it to qualify as a Competitive Business; or

 

(b)                                 make or retain any financial
investment, whether in the form of equity or debt, or own any interest, in any
Competitive Business.  Nothing in this
subsection shall, however, restrict Executive from making an investment in
any Competitive Business if such investment does not (i) represent more than 1%
of the aggregate market value of the outstanding capital stock or debt (as
applicable) of such Competitive Business, (ii) give Executive any right or
ability, directly or indirectly, to control or influence the policy decisions
or management of such Competitive Business, and (iii) create a conflict of
interest between Executive’s duties under this Agreement and his interest in
such investment.

 

7.3.                              Non-Solicitation.  During the period beginning on the Agreement
Date and ending on the last to occur of the first anniversary of any
Termination Date, or the end of the Severance Period, Executive shall not,
directly or indirectly:

 

(a)                                  other than in connection with
the good-faith performance of his duties as an officer or employee of the
Company, encourage any employee or agent of the Company or any Affiliate to
terminate his or her relationship with the Company or such Affiliate;

 

(b)                                 employ, engage as a consultant
or adviser, or solicit the employment or engagement as a consultant or adviser,
of any employee or agent of the Company (other than by the Company or its
Affiliates), or cause or encourage any Person to do any of the foregoing;

 

(c)                                  establish (or take preliminary
steps to establish) a business with, or encourage others to establish (or take
preliminary steps to establish) a business with, any employee or agent of the
Company or any Affiliate; or

 

(d)                                 interfere with the relationship
of the Company or any Affiliate with, or endeavor to entice away from the
Company or such Affiliate, any Person who or which at any time during the
period commencing one year prior to the Agreement Date was or is a material
customer or material supplier of, or maintained a material business relationship
with, the Company or any Affiliate.

 

7.4.                              Intellectual Property.  During the period beginning on the first date
of Executive’s employment and ending on the Termination Date, Executive shall
disclose immediately to the Company all ideas, inventions and business plans
that he makes, conceives, creates, authors, reduces to practice, discovers or
develops alone or with others during the course of his employment with any of
the Company or its Affiliates, including any inventions, information,

 

12

 

innovations, know-how, methods, processes, designs, formulas, concepts,
software, plans, original works of authorship, modifications, discoveries,
developments, improvements, computer programs, processes, products or
procedures (whether or not protectable upon application by copyright, patent,
trademark, trade secret or other proprietary rights) (“Work Product”)
that:  (i) relate to the current or
reasonably foreseeable or anticipated future business of the Company or its
Affiliates or any customer or supplier to the Company or its Affiliates or any
of the products or services being developed, manufactured, sold, offered for
sale or otherwise provided or offered by the Company or its Affiliates or that
may be used in relation therewith; or (ii) result from, relate to, or arise out
of tasks assigned to Executive by the Company or its Affiliates; or (iii)
result from, relate to, or arise out of the use of the premises or personal
property (whether tangible or intangible) owned, leased or contracted for by
the Company or its Affiliates.  Executive
agrees that any Work Product shall be the property of the Company and, if
subject to copyright, shall be considered a “work made for hire” within the
meaning of the Copyright Act of 1976, as amended (the “Act”).  If and to the extent that any such Work
Product is found as a matter of law not to be a “work made for hire” within the
meaning of the Act, or is otherwise not owned by such Company as a matter of
law, Executive expressly assigns to such Company all right, title and interest
in and to the Work Product, and all copies thereof, and the copyright, patent,
trademark, trade secret and all intellectual property or other proprietary
rights in the Work Product, without further consideration, free from any claim,
lien for balance due or rights of retention thereto on the part of Executive.

 

(a)                                  The Company hereby notifies
Executive that the preceding paragraph does not apply to any inventions for
which no equipment, supplies, facility, or trade secret information of the
Company was used and which was developed entirely on the Executive’s own time,
unless:  (i) the invention relates (a) to
the Company’s business, or (b) to the Company’s actual or demonstrably
anticipated research or development, or (ii) the invention results from
any work performed by the Executive for the Company.

 

(b)                                 Executive agrees that Executive
will, during his employment and at any time thereafter, at the request and cost
of the Company, execute all such documents and perform all such acts as the
Company or its duly authorized agents may reasonably require:  (i) to apply for, prosecute, register or
otherwise obtain and vest in the name of the Company alone (unless the Company
otherwise directs) all right, title and interest in and to letters patent,
copyrights, trade marks, trade secrets, or other intellectual property,
proprietary or analogous protection in any country throughout the world, and
when so obtained or vested to renew, amend modify, reissue, re-examine,
maintain and restore the same as required; and (ii) to defend any opposition or
other administrative or court proceedings in respect of such applications,
registrations or other intellectual property rights and any opposition
proceedings or petitions or applications for revocation of such letters patent,
copyright and other analogous protection and all other analogous proceedings in
any country throughout the world.

 

(c)                                  In the event that the Company is
unable, after reasonable effort, to secure Executive’s signature on any
document required for the application, registration, issuance, prosecution, or
maintenance of any letters patent, copyright or other analogous protection of
proprietary or intellectual property rights relating to any Work Product, whether
because of Executive’s physical or mental incapacity or for any other reason
whatsoever, Executive hereby irrevocably designates and appoints the Company
and its

 

13

 

duly-authorized officers and agents as his
agent and attorney-in-fact in any country throughout the world, to act for and
on his behalf to execute and file any documents and to do all other lawfully
permitted acts to further the application, registration, maintenance,
prosecution and issuance of letters patent, copyright and other analogous
protection of proprietary or intellectual property rights relating to any Work
Products, with the same legal force and effect as if personally executed by
Executive, in any country throughout the world.

 

7.5.                              Reasonableness of Restrictive
Covenants.

 

(a)                                  Executive acknowledges that the
covenants contained in Sections 7.1, 7.2, 7.3 and 7.4 are reasonable in the
scope of the activities restricted, the geographic area covered by the
restrictions, and the duration of the restrictions, and that such covenants are
reasonably necessary to protect the Company’s legitimate interests in its
Confidential Information and the Work Product and in its relationships with its
employees, customers and suppliers. 
Executive further acknowledges such covenants are essential elements of
this Agreement and that, but for such covenants, the Company would not have
entered into this Agreement.

 

(b)                                 The Company and Executive have
each had the opportunity to consult with their respective legal counsel and
have been advised concerning the reasonableness and propriety of such
covenants.  Executive acknowledges that
his observance of the covenants contained in Sections 7.1, 7.2, 7.3 and 7.4
will not deprive him of the ability to earn a livelihood or to support his
dependents.

 

ARTICLE VIII.

 

NON-EXCLUSIVITY OF RIGHTS

 

8.1.                              Waiver of Certain Other Rights.  To the extent that lump sum cash severance
payments are made to Executive pursuant to Article III, Executive hereby
waives the right to receive severance payments or severance benefits under any
other Plan or agreement of the Company.

 

8.2.                              Other Rights.  Except as expressly provided in Section 8.1
or elsewhere in this agreement, this Agreement shall not prevent or limit
Executive’s continuing or future participation in any benefit, bonus, incentive
or other Plans provided by the Company and for which Executive may qualify, nor
shall this Agreement limit or otherwise affect such rights as Executive may
have under any other agreements with the Company.  Amounts which are vested benefits or which
Executive is otherwise entitled to receive under any Plan and any other payment
or benefit required by law at or after the Termination Date shall be payable in
accordance with such Plan or applicable law except as expressly modified by
this Agreement.

 

8.3.                              No Right to Continued Employment.  Nothing in this Agreement shall guarantee the
right of Executive to continue in employment, and the Company retains the right
to terminate the Executive’s employment at any time for any reason or for no
reason.

 

14

 

ARTICLE IX.

 

MISCELLANEOUS

 

9.1.                              No Assignability.  This Agreement is personal to Executive and
without the prior written consent of the Company shall not be assignable by
Executive otherwise than under Section 9.3.  This Agreement shall inure to the benefit of
and be enforceable by Executive’s legal representatives.

 

9.2.                              Successors.  This Agreement shall inure to the benefit of
and be binding upon the Company and its successors and assigns.  The Company will require any successor to all
or substantially all of the business or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such
succession had taken place.  Any
successor to the business or assets of the Company which assumes or agrees to
perform this Agreement by operation of law, contract, or otherwise shall be
jointly and severally liable with the Company under this Agreement as if such
successor were the Company.

 

9.3.                              Payments to Beneficiary.  If Executive dies before receiving amounts to
which Executive is entitled under this Agreement, such amounts shall be paid in
a lump sum to one or more beneficiaries designated in writing by Executive
(each, a “Beneficiary”).  If none is so
designated, the Executive’s estate shall be his or her Beneficiary.

 

9.4.                              Non-Alienation of Benefits.  Benefits payable under this Agreement shall
not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution or levy of any
kind, either voluntary or involuntary, before actually being received by
Executive, and any such attempt to dispose of any right to benefits payable
under this Agreement shall be void.

 

9.5.                              Severability.  If any one or more portions of this Agreement
are declared by any court or governmental authority to be unlawful or invalid,
such unlawfulness or invalidity shall not serve to invalidate any portion not
so declared to be unlawful or invalid. 
Any portion declared to be unlawful or invalid shall be construed so as
to effectuate the terms of such portion to the fullest extent possible while
remaining lawful and valid.

 

9.6.                              Amendments.  This Agreement shall not be amended or
modified except by written instrument executed by the Company and Executive.

 

9.7.                              Notices.  All notices and other communications under
this Agreement shall be in writing and delivered by hand, by
nationally-recognized delivery service that promises overnight delivery, or by
first-class registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

 

If to Executive, to Executive at his most
recent home address on file with the Company.

 

15

 

If to Company:

 

SeeBeyond Technology Corporation

800 East Royal Oaks Drive

Monrovia, CA 91016

Attention:  General Counsel

 

or to such
other address as either party shall have furnished to the other in
writing.  Notice and communications shall
be effective when actually received by the addressee.

 

9.8.                              Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together
constitute one and the same instrument.

 

9.9.                              Governing Law.  This Agreement shall be interpreted and
construed in accordance with the laws of the State of California, without
regard to its choice of law principles.

 

9.10.                        Captions.  The captions of this Agreement are not a part
of the provisions hereof and shall have no force or effect.

 

9.11.                        Number and Gender.  Wherever appropriate, the singular shall
include the plural, the plural shall include the singular, and the masculine
shall include the feminine.

 

9.12.                        Tax Withholding.  The Company may withhold from any amounts
payable under this Agreement any Taxes that are required to be withheld
pursuant to any applicable law or regulation and may report all such amounts
payable to such authority as is required by any applicable law or regulation.

 

9.13.                        Waiver.  Executive’s failure to insist upon strict
compliance with any provision of this Agreement shall not be deemed a waiver of
such provision or any other provision of this Agreement.  A waiver of any provision of this Agreement
shall not be deemed a waiver of any other provision, and any waiver of any
default in any such provision shall not be deemed a waiver of any later default
thereof or of any other provision.

 

9.14.                        Entire Agreement.  This Agreement contains the entire
understanding of the Company and Executive with respect to its subject matter
and supersedes any prior agreement, whether written or oral, dealing with the
subject matter hereof.  The third paragraph
(relating to benefits upon a change of control) of the Prior Agreement dated October 4,
1999 is hereby expressly superseded as of the date hereof.

 

16

 

IN WITNESS
WHEREOF, Executive and SeeBeyond Technology Corporation have executed this Change
of Control Employment Agreement as of the date first above written.

 

	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
  /S/ BARRY
  PLAGA

  	
   

  
	
   

  	
  Barry Plaga

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SEEBEYOND TECHNOLOGY
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ JAMES
  DEMETRIADES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Chief
  Executive Officer

  	
   

  

 

17

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