Document:

EXHIBIT
10.20

 

BROADVISION,
INC.

2000 NON-OFFICER EQUITY INCENTIVE PLAN

 

ADOPTED ON FEBRUARY 8, 2000

STOCKHOLDER
APPROVAL NOT REQUIRED

AMENDED BY THE BOARD OF DIRECTORS ON SEPTEMBER 11, 2002

 

Reflects the three-for-one stock
split effected February 22, 2000 and the 

one-for-nine reverse stock split effected July 29, 2002

 

1.                                      PURPOSES.

 

(a)                                  The
purpose of the Plan is to provide a means by which selected Employees of and
Consultants to the Company and its Affiliates who are not Officers or Directors
may be given an opportunity to benefit from increases in value of the stock of
the Company through the granting of (i) Nonstatutory Stock Options, (ii) stock
bonuses and (iii) rights to purchase restricted stock, all as described below.
The Plan is also intended to provide a means by which the Company may grant
options to persons not previously employed by the Company as an inducement
essential to those persons entering employment contracts with the Company.  Such “inducement grants” may be made to any
Employee, including persons who ultimately are employed by the Company as
Officers.

 

(b)                                  The
Company, by means of the Plan, seeks to retain the services of persons who are
now Employees or Consultants, to secure and retain the services of new
Employees and Consultants, and to provide incentives for such persons to exert
maximum efforts for the success of the Company and its Affiliates.

 

(c)                                  The
Company intends that the Stock Awards issued under the Plan shall be, in the
discretion of the Board or any Committee to which responsibility for
administration of the Plan has been delegated pursuant to subsection 3(c),
either (i) Nonstatutory Stock Options granted pursuant to Section 6 hereof or
(ii) stock bonuses or rights to purchase restricted stock granted pursuant to
Section 7 hereof.

 

2.                                      DEFINITIONS.

 

(a)                                  “Affiliate”
means any parent corporation or subsidiary corporation, whether now or
hereafter existing, as those terms are defined in Sections 424(e) and (f)
respectively, of the Code.

 

(b)                                  “Board”
means the Board of Directors of the Company.

 

(c)                                  “Code”
means the Internal Revenue Code of 1986, as amended.

 

(d)                                  “Committee”
means a Committee appointed by the Board in accordance with subsection 3(c) of
the Plan.

 

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(e)                                  “Company”
means BroadVision, Inc., a Delaware corporation.

 

(f)                                    “Consultant”
means any person, including an advisor, engaged by the Company or an Affiliate
to render consulting services and who is compensated for such services; provided
that the term “Consultant” shall not include Directors.

 

(g)                                 “Continuous Service”
(formerly “Continuous Status as
an Employee, Director or Consultant”) means that the
Participant’s service with the Company or an Affiliate, whether as an Employee,
Officer, Director or Consultant, is not interrupted or terminated.  The Participant’s Continuous Service shall
not be deemed to have terminated merely because of a change in the capacity in
which the Participant renders service to the Company or an Affiliate as an
Employee, Officer, Consultant or Director or a change in the entity for which
the Participant renders such service, provided that there is no interruption or
termination of the Participant’s Continuous Service.  For example, a change in status from an Employee of the Company
to a Consultant of an Affiliate or a Director of the Company will not
constitute an interruption of Continuous Service.  The Board or the chief executive officer of the Company, in that
party’s sole discretion, may determine whether Continuous Service shall be
considered interrupted in the case of any leave of absence approved by that
party, including sick leave, military leave or any other personal leave.

 

(h)                                 “Director”
means a member of the Board.

 

(i)                                    “Employee”
means any person employed by the Company or any Affiliate of the Company; provided
that except as provided below, Officers and Directors of the Company
shall not be considered Employees for purposes of the Plan.  Notwithstanding the foregoing, an Officer
shall be considered an Employee for purposes of the grant under this Plan of a
Stock Award to that Officer as an inducement essential to such Officer’s
entering into an employment contract with the Company if such Officer was not
an Employee of the Company immediately prior to the date on which such Stock
Award is granted.

 

(j)                                    “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(k)                                “Fair Market
Value” means, as of any date, the value of the Common Stock of
the Company determined as follows:

 

(1)                                 If
the Common Stock is listed on any established stock exchange or a national
market system, including without limitation the National Market of The Nasdaq
Stock Market, the Fair Market Value of a share of Common Stock shall be the
closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such system or exchange (or the exchange with the
greatest volume of trading in Common Stock) on the last market trading day
prior to the day of determination, as reported in the Wall Street Journal or
such other source as the Board deems reliable.

 

(2)                                 If
the Common Stock is quoted on The Nasdaq Stock Market (but not on the National
Market thereof) or is regularly quoted by a recognized securities dealer but
selling prices are not reported, the Fair Market Value of a share of Common
Stock shall be the mean between the bid and asked prices for the Common Stock
on the last market trading day prior to

 

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the day of
determination, as reported in the Wall Street Journal or such other source as
the Board deems reliable.

 

(3)                                 In
the absence of an established market for the Common Stock, the Fair Market
Value shall be determined in good faith by the Board.

 

(l)                                    “Non-Employee Director”
means a Director of the Company who either (i) is not a current Employee or an
officer (within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder) of the Company or its parent or a
subsidiary, does not receive compensation (directly or indirectly) from the
Company or its parent or a subsidiary for services rendered as a consultant or
in any capacity other than as a Director (except for an amount as to which
disclosure would not be required under Item 404(a) of Regulation S-K
promulgated pursuant to the Securities Act (“Regulation S-K”)), does not
possess an interest in any other transaction as to which disclosure would be
required under Item 404(a) of Regulation S-K and is not engaged in a business
relationship as to which disclosure would be required under Item 404(b) of
Regulation S-K or (ii) is otherwise considered a “non-employee director” for
purposes of Rule 16b-3.

 

(m)                              “Nonstatutory
Stock Option” means an Option not intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

 

(n)                                 “Officer”
means a person who is an officer of the Company, including any corporate
officer with a title of Vice President or above or any other Employee of the
Company whom the Board or the Committee classifies as an “Officer.”

 

(o)                                  “Option”
means a stock option granted pursuant to the Plan.

 

(p)                                  “Option
Agreement” means a written agreement between the Company and an
Optionee evidencing the terms and conditions of an individual Option
grant.  Each Option Agreement shall be
subject to the terms and conditions of the Plan.

 

(q)                                  “Optionee”
means a person to whom an Option is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Option.

 

(r)                                  “Participant”
means a person to whom a Stock Award is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Stock Award.

 

(s)                                  “Plan”
means this BroadVision, Inc. 2000 Non-Officer Equity Incentive Plan.

 

(t)                                    “Rule 16b-3”
means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in
effect when discretion is being exercised with respect to the Plan.

 

(u)                                 “Securities Act” means
the Securities Act of 1933, as amended.

 

(v)                                   “Stock
Award” means any right granted under the Plan, including any
Option, any stock bonus and any right to purchase restricted stock.

 

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(w)                                “Stock Award
Agreement” means a written agreement between the Company and a
holder of a Stock Award evidencing the terms and conditions of an individual
Stock Award grant.  Each Stock Award
Agreement shall be subject to the terms and conditions of the Plan.

 

3.                                      ADMINISTRATION.

 

(a)                                  The
Board shall administer the Plan unless and until the Board delegates
administration to a Committee, as provided in subsection 3(c).

 

(b)                                  The
Board shall have the power, subject to, and within the limitations of, the
express provisions of the Plan:

 

(1)                                 To
determine from time to time which of the persons eligible under the Plan shall
be granted Stock Awards; when and how each Stock Award shall be granted;
whether a Stock Award will be an Option, a stock bonus, a right to purchase
restricted stock or the provisions of each Stock Award granted (which need not
be identical), including the time or times when a person shall be permitted to
receive stock pursuant to a Stock Award; and the number of shares with respect
to which a Stock Award shall be granted to each such person.

 

(2)                                 To
construe and interpret the Plan and Stock Awards granted under it, and to establish,
amend and revoke rules and regulations for its administration.  The Board, in the exercise of this power,
may correct any defect, omission or inconsistency in the Plan or in any Stock
Award Agreement, in a manner and to the extent it shall deem necessary or
expedient to make the Plan fully effective.

 

(3)                                 To
amend the Plan or a Stock Award as provided in Section 12.

 

(4)                                 To
terminate or suspend the Plan as provided in Section 13.

 

(5)                                 Generally,
to exercise such powers and to perform such acts as the Board deems necessary
or expedient to promote the best interests of the Company which are not in
conflict with the provisions of the Plan.

 

(c)                                  The
Board may delegate administration of the Plan to a Committee or Committees of
one or more members of the Board, and the term “Committee” shall apply to any
person or persons to whom such authority has been delegated.  If administration is delegated to a
Committee, the Committee shall have, in connection with the administration of
the Plan, the powers theretofore possessed by the Board, including the power to
delegate to a subcommittee any of the administrative powers the Committee is
authorized to exercise (and references in this Plan to the Board shall
thereafter be to the Committee or subcommittee), subject, however, to such
resolutions, not inconsistent with the provisions of the Plan, as may be
adopted from time to time by the Board. 
The Board may abolish the Committee at any time and revest in the Board
the administration of the Plan.  In the
discretion of the Board, a Committee may consist solely of two or more
Non-Employee Directors, in accordance with Rule 16b-3.  Within the scope of such authority, the
Board or the Committee may delegate to a committee of one or more members of
the Board who are not Non-Employee Directors the authority to grant Stock
Awards to eligible persons who are not then subject to Section 16 of the
Exchange Act.

 

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4.                                      SHARES
SUBJECT TO THE PLAN.

 

(a)                                  Subject
to the provisions of Section 11 relating to adjustments upon changes in stock,
the stock that may be issued pursuant to Stock Awards shall not exceed in the
aggregate two million six hundred thousand six hundred and sixty-seven
(2,666,667) shares of the Company’s Common Stock.  If any Stock Award shall for any reason expire or otherwise
terminate, in whole or in part, without having been exercised in full, the
stock not acquired under such Stock Award shall revert to and again become
available for issuance under the Plan.

 

(b)                                  The
stock subject to the Plan may be unissued shares or reacquired shares, bought
on the market or otherwise.

 

5.                                      ELIGIBILITY.

 

(a)                                  Stock
Awards may be granted only to Employees or Consultants.

 

(b)                                  A
Consultant shall not be eligible for the grant of a Stock Award if, at the time
of grant, a Form S-8 Registration Statement under the Securities Act (“Form
S-8”) is not available to register either the offer or the sale of the
Company’s securities to such Consultant because of the nature of the services
that the Consultant is providing to the Company, or because the Consultant is
not a natural person, or as otherwise provided by the rules governing the use
of Form S-8, unless the Company determines both (i) that such grant (A) shall
be registered in another manner under the Securities Act (e.g., on a Form S-3
Registration Statement) or (B) does not require registration under the
Securities Act in order to comply with the requirements of the Securities Act,
if applicable, and (ii) that such grant complies with the securities laws of
all other relevant jurisdictions.

 

6.                                      OPTION
PROVISIONS.

 

Each Option shall
be in such form and shall contain such terms and conditions as the Board shall
deem appropriate.  The provisions of
separate Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:

 

(a)                                  Term.  No Option shall be exercisable after the
expiration of ten (10) years from the date it was granted.

 

(b)                                  Price.  The exercise price of each Option shall be
not less than eighty-five percent (85%) of the Fair Market Value of the stock
subject to the Option on the date the Option is granted.

 

(c)                                  Consideration.  The purchase price of stock acquired
pursuant to an Option shall be paid, to the extent permitted by applicable
statutes and regulations, either (i) in cash at the time the Option is
exercised or (ii) at the discretion of the Board or the Committee, at the time
of the grant of the Option, (A) by delivery to the Company of other Common
Stock of the Company, (B) according to a deferred payment or other arrangement
(which may include, without limiting the generality of the foregoing, the use
of other Common Stock of the Company) with the person to whom the Option is
granted or to whom the Option is transferred

 

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pursuant to
subsection 6(d) or (C) in any other form of legal consideration that may be
acceptable to the Board; provided, however, that at any time that
the Company is incorporated in Delaware, payment of the Common Stock’s “par
value,” as defined in the Delaware General Corporation Law, shall not be made
by deferred payment.

 

In the case of any
deferred payment arrangement, interest shall be compounded at least annually
and shall be charged at the minimum rate of interest necessary to avoid the
treatment as interest, under any applicable provisions of the Code, of any
amounts other than amounts stated to be interest under the deferred payment
arrangement.

 

(d)                                  Transferability.
An Option shall be transferable to the extent provided in the Option
Agreement.  If the Option does not
provide for transferability, then the Option shall not be transferable except
by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Optionholder only by the Optionholder.  Notwithstanding the foregoing, the person to
whom the Option is granted may, by delivering written notice to the Company, in
a form satisfactory to the Company, designate a third party who, in the event
of the death of the Optionee, shall thereafter be entitled to exercise the
Option.

 

(e)                                  Vesting.  The total number of shares of stock subject
to an Option may, but need not, be allotted in periodic installments (which
may, but need not, be equal).  The
Option Agreement may provide that from time to time during each of such
installment periods, the Option may become exercisable (“vest”) with respect to
some or all of the shares allotted to that period, and may be exercised with
respect to some or all of the shares allotted to such period and/or any prior
period as to which the Option became vested but was not fully exercised.  The Option may be subject to such other
terms and conditions on the time or times when it may be exercised (which may
be based on performance or other criteria) as the Board may deem
appropriate.  The provisions of this
subsection 6(e) are subject to any Option provisions governing the minimum
number of shares as to which an Option may be exercised.

 

(f)                                    Termination
of Continuous Service.  In the event
an Optionee’s Continuous Service terminates (other than upon the Optionee’s
death or disability), the Optionee may exercise his or her Option (to the
extent that the Optionee was entitled to exercise it at the date of
termination) but only within such period of time ending on the earlier of (i)
the date three (3) months after the termination of the Optionee’s Continuous
Service (or such longer or shorter period specified in the Option Agreement) or
(ii) the expiration of the term of the Option as set forth in the Option
Agreement.  If, after termination, the
Optionee does not exercise his or her Option within the time specified in the
Option Agreement, the Option shall terminate, and the shares covered by such
Option shall revert to and again become available for issuance under the Plan.

 

An Optionee’s
Option Agreement may also provide that if the exercise of the Option following
the termination of the Optionee’s Continuous Service (other than upon the
Optionee’s death or disability) would result in liability under Section 16(b)
of the Exchange Act, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option set forth in the Option Agreement, or (ii)
the tenth (10th) day after the last date on which such exercise would result in
such liability under Section 16(b) of the Exchange Act.

 

6

 

Finally, an
Optionee’s Option Agreement may also provide that if the exercise of the Option
following the termination of the Optionee’s Continuous Service (other than upon
the Optionee’s death or disability) would be prohibited at any time solely
because the issuance of shares would violate the registration requirements
under the Securities Act, then the Option shall terminate on the earlier of (i)
the expiration of the term of the Option set forth in the first paragraph of
this subsection 6(f) or (ii) the expiration of a period of three (3) months
after the termination of the Optionee’s Continuous Service during which the
exercise of the Option would not be in violation of such registration
requirements.

 

(g)                                 Disability
of Optionee.  In the event an
Optionee’s Continuous Service terminates as a result of the Optionee’s
disability, the Optionee may exercise his or her Option (to the extent that the
Optionee was entitled to exercise it at the date of termination), but only
within such period of time ending on the earlier of (i) the date twelve (12)
months following such termination (or such longer or shorter period specified
in the Option Agreement) or (ii) the expiration of the term of the Option as
set forth in the Option Agreement.  If,
at the date of termination, the Optionee is not entitled to exercise his or her
entire Option, the shares covered by the unexercisable portion of the Option
shall revert to and again become available for issuance under the Plan.  If, after termination, the Optionee does not
exercise his or her Option within the time specified herein, the Option shall
terminate, and the shares covered by such Option shall revert to and again
become available for issuance under the Plan.

 

(h)                                 Death
of Optionee.  In the event of the
death of an Optionee during, or within a period specified in the Option after
the termination of, the Optionee’s Continuous Service, the Option may be
exercised (to the extent the Optionee was entitled to exercise the Option at
the date of death) by the Optionee’s estate, by a person who acquired the right
to exercise the Option by bequest or inheritance or by a person designated to
exercise the option upon the Optionee’s death pursuant to subsection 6(d), but
only within the period ending on the earlier of (i) the date eighteen (18)
months following the date of death (or such longer or shorter period specified
in the Option Agreement) or (ii) the expiration of the term of such Option as
set forth in the Option Agreement.  If,
at the time of death, the Optionee was not entitled to exercise his or her
entire Option, the shares covered by the unexercisable portion of the Option
shall revert to and again become available for issuance under the Plan.  If, after death, the Option is not exercised
within the time specified herein, the Option shall terminate, and the shares
covered by such Option shall revert to and again become available for issuance
under the Plan.

 

(i)                                    Early
Exercise.  The Option may, but need
not, include a provision whereby the Optionee may elect at any time while an
Employee, Officer, Director or Consultant to exercise the Option as to any part
or all of the shares subject to the Option prior to the full vesting of the
Option.  Any unvested shares so
purchased may be subject to a repurchase right in favor of the Company or to
any other restriction the Board determines to be appropriate.

 

(j)                                    Re-Load
Options.  Without in any way
limiting the authority of the Board or Committee to make or not to make grants
of Options hereunder, the Board or Committee shall have the authority (but not
an obligation) to include as part of any Option Agreement a provision entitling
the Optionee to a further Option (a “Re-Load Option”) in the event the Optionee
exercises the Option evidenced by the Option agreement, in whole or in part, by
surrendering other shares of Common Stock in accordance with this Plan and the
terms and conditions of the

 

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Option
Agreement.  Any such Re-Load Option (i)
shall be for a number of shares equal to the number of shares surrendered as
part or all of the exercise price of such Option, (ii) shall have an expiration
date that is the same as the expiration date of the Option the exercise of
which gave rise to such Re-Load Option, and (iii) shall have an exercise price
that is at least eighty-five percent (85%) of the Fair Market Value of the
Common Stock subject to the Re-Load Option on the date of exercise of the
original Option.

 

There shall be no
Re-Load Options on a Re-Load Option. 
Any such Re-Load Option shall be subject to the availability of
sufficient shares under subsection 4(a) and shall be subject to such other
terms and conditions as the Board or Committee may determine which are not
inconsistent with the express provisions of the Plan regarding the terms of
Options.

 

7.                                      TERMS
OF STOCK BONUSES AND PURCHASES OF RESTRICTED STOCK.

 

Each stock bonus
or restricted stock purchase agreement shall be in such form and shall contain
such terms and conditions as the Board or the Committee shall deem
appropriate.  The terms and conditions
of stock bonus or restricted stock purchase agreements may change from time to
time, and the terms and conditions of separate agreements need not be
identical, but each stock bonus or restricted stock purchase agreement shall
include (through incorporation of provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions as
appropriate:

 

(a)                                  Purchase
Price.  The purchase price under
each restricted stock purchase agreement shall be such amount as the Board or
Committee shall determine and designate in such agreement but in no event shall
the purchase price be less than eighty-five percent (85%) of the stock’s Fair
Market Value on the date such award is made. 
Notwithstanding the foregoing, the Board or the Committee may determine
that eligible participants in the Plan may be awarded stock pursuant to a stock
bonus agreement in consideration for past services actually rendered to the
Company for its benefit.

 

(b)                                  Transferability.  Rights to acquire shares under the stock
bonus or restricted stock purchase agreement shall be transferable only upon
such terms and conditions as are set forth in the agreement, as the Board shall
determine in its discretion, so long as stock awarded under the agreement
remains subject to the terms of the agreement.

 

(c)                                  Consideration.  The purchase price of stock acquired
pursuant to a stock purchase agreement shall be paid either:  (i) in cash at the time of purchase, (ii) at
the discretion of the Board or the Committee, according to a deferred payment
or other arrangement with the person to whom the stock is sold or (iii) in any
other form of legal consideration that may be acceptable to the Board or the
Committee in its discretion; provided, however, that at any time that
the Company is incorporated in Delaware, payment of the Common Stock’s “par
value,” as defined in the Delaware General Corporation Law, shall not be made
by deferred payment.  Notwithstanding
the foregoing, the Board or the Committee to which administration of the Plan
has been delegated may award stock pursuant to a stock bonus agreement in
consideration for past services actually rendered to the Company or for its
benefit.

 

8

 

(d)                                  Vesting.  Shares of stock sold or awarded under the
Plan may, but need not, be subject to a repurchase option in favor of the
Company in accordance with a vesting schedule to be determined by the Board or
the Committee.

 

(e)                                  Termination
of Continuous Service.  In the event
a Participant’s Continuous Service terminates, the Company may repurchase or
otherwise reacquire any or all of the shares of stock held by that person which
have not vested as of the date of termination under the terms of the stock
bonus or restricted stock purchase agreement between the Company and such
person.

 

8.                                      COVENANTS
OF THE COMPANY.

 

(a)                                  During
the terms of the Stock Awards, the Company shall keep available at all times
the number of shares of stock required to satisfy such Stock Awards.

 

(b)                                  The
Company shall seek to obtain from each regulatory commission or agency having
jurisdiction over the Plan such authority as may be required to issue and sell
shares of stock upon exercise of the Stock Award; provided, however, that this
undertaking shall not require the Company to register under the Securities Act
either the Plan, any Stock Award or any stock issued or issuable pursuant to
any such Stock Award.  If, after
reasonable efforts, the Company is unable to obtain from any such regulatory
commission or agency the authority which counsel for the Company deems
necessary for the lawful issuance and sale of stock under the Plan, the Company
shall be relieved from any liability for failure to issue and sell stock upon
exercise of such Stock Awards unless and until such authority is obtained.

 

9.                                      USE
OF PROCEEDS FROM STOCK.

 

Proceeds from the
sale of stock pursuant to Stock Awards shall constitute general funds of the
Company.

 

10.                               MISCELLANEOUS.

 

(a)                                  The
Board shall have the power to accelerate the time at which a Stock Award may
first be exercised or the time during which a Stock Award or any part thereof
will vest pursuant to subsection 6(e) or 7(d) notwithstanding the provisions in
the Stock Award stating the time at which it may first be exercised or the time
during which it will vest.

 

(b)                                  Neither
an Employee, an Officer nor a Consultant nor any person to whom a Stock Award
is transferred in accordance with the Plan shall be deemed to be the holder of,
or to have any of the rights of a holder with respect to, any shares subject to
such Stock Award unless and until such person has exercised the Stock Award
pursuant to its terms.

 

(c)                                  Nothing
in the Plan or any instrument executed or Stock Award granted pursuant thereto
shall confer upon any Employee, Officer, Consultant or other holder of Stock
Awards any right to continue in the employ of the Company or any Affiliate or
to continue acting as a Consultant or shall affect the right of the Company or
any Affiliate to terminate the employment of any Employee or Officer with or
without notice and with or without cause, or the right to

 

9

 

terminate the
relationship of any Consultant pursuant to the terms of such Consultant’s
agreement with the Company or Affiliate.

 

(d)                                  The
Company may require any person to whom a Stock Award is granted, or any person
to whom a Stock Award is transferred in accordance with the Plan, as a
condition of exercising or acquiring stock under any Stock Award, (i) to give
written assurances satisfactory to the Company as to such person’s knowledge
and experience in financial and business matters and/or to employ a purchaser
representative reasonably satisfactory to the Company who is knowledgeable and
experienced in financial and business matters, and that he or she is capable of
evaluating, alone or together with the purchaser representative, the merits and
risks of exercising the Stock Award and (ii) to give written assurances
satisfactory to the Company stating that such person is acquiring the stock
subject to the Stock Award for such person’s own account and not with any
present intention of selling or otherwise distributing the stock.  The foregoing requirements, and any
assurances given pursuant to such requirements, shall be inoperative if (A) the
issuance of the shares upon the exercise or acquisition of stock under the
Stock Award has been registered under a then currently effective registration
statement under the Securities Act, or (B) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws.  The Company may, upon advice of counsel to
the Company, place legends on stock certificates issued under the Plan as such
counsel deems necessary or appropriate in order to comply with applicable
securities laws, including, but not limited to, legends restricting the
transfer of the stock.

 

(e)                                  To
the extent provided by the terms of a Stock Award Agreement, the person to whom
a Stock Award is granted may satisfy any federal, state or local tax
withholding obligation relating to the exercise or acquisition of stock under a
Stock Award by any of the following means or by a combination of such
means:  (1) tendering a cash payment,
(2) authorizing the Company to withhold shares from the shares of the Common
Stock otherwise issuable to the participant as a result of the exercise or
acquisition of stock under the Stock Award or (3) delivering to the Company
owned and unencumbered shares of the Common Stock of the Company.  Notwithstanding the foregoing, the Company
shall not be authorized to withhold shares of Common Stock at rates in excess
of the minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes, if such excess withholding would result in a charge to
the Company’s earnings for accounting purposes.

 

11.                               ADJUSTMENTS
UPON CHANGES IN STOCK.

 

(a)                                  If
any change is made in the stock subject to the Plan, or subject to any Stock
Award, without the receipt of consideration by the Company (through merger,
consolidation, reorganization, recapitalization, reincorporation, stock
dividend, dividend in property other than cash, stock split, liquidating
dividend, combination of shares, exchange of shares, change in corporate
structure or other transaction not involving the receipt of consideration by
the Company), the Plan will be appropriately adjusted in the class(es) and
maximum number of shares subject to the Plan pursuant to subsection 4(a) and
the outstanding Stock Awards will be appropriately adjusted in the class(es)
and number of shares and price per share of stock subject to such outstanding
Stock Awards.  Such adjustments shall be
made by the Board or the Committee, the determination of which shall be final,
binding and conclusive.  (The conversion

 

10

 

of any convertible
securities of the Company shall not be treated as a “transaction not involving
the receipt of consideration by the Company.”)

 

(b)                                  In
the event of: (1) a dissolution, liquidation or sale of substantially all of
the assets of the Company, (2) a merger or consolidation in which the Company
is not the surviving corporation or (3) a reverse merger in which the Company
is the surviving corporation but the shares of the Company’s Common Stock
outstanding immediately preceding the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash or
otherwise, then to the extent permitted by applicable law, any surviving
corporation or an Affiliate of such surviving corporation shall assume any
Stock Awards outstanding under the Plan or shall substitute similar Stock
Awards for those outstanding under the Plan. 
In the event any surviving corporation and its Affiliates refuse to
assume or continue such Stock Awards, or to substitute similar options for
those outstanding under the Plan, then, with respect to Stock Awards held by
persons then performing services as Employees, Directors or Consultants, the
time during which such Stock Awards may be exercised shall be accelerated and
the Stock Awards terminated if not exercised prior to such event.  With respect to any other Stock Awards
outstanding under the Plan, such Stock Awards shall terminate if not exercised
prior to such event.

 

12.                               AMENDMENT
OF THE PLAN AND STOCK AWARDS.

 

(a)                                  The
Board at any time, and from time to time, may amend the Plan.  However, except as provided in Section 11
relating to adjustments upon changes in stock, no amendment shall be effective
unless approved by the stockholders if such modification requires stockholder
approval in order for the Plan to satisfy the requirements of Section 422 of
the Code or any Nasdaq or securities exchange listing requirements, or to
comply with the requirements of Rule 16b-3. 
The Board may in its sole discretion submit any other amendment to the
Plan for stockholder approval.

 

(b)                                  Rights
and obligations under any Stock Award granted before amendment of the Plan
shall not be impaired by any amendment of the Plan unless (i) the Company
requests the consent of the person to whom the Stock Award was granted and (ii)
such person consents in writing.

 

(c)                                  The
Board at any time, and from time to time, may amend the terms of any one or
more Stock Award; provided, however, that the rights and obligations under any
Stock Award shall not be impaired by any such amendment unless (i) the Company
requests the consent of the person to whom the Stock Award was granted and (ii)
such person consents in writing.

 

13.                               TERMINATION
OR SUSPENSION OF THE PLAN.

 

(a)                                  The
Board may suspend or terminate the Plan at any time. No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is terminated.

 

(b)                                  Rights
and obligations under any Stock Award granted while the Plan is in effect shall
not be impaired by suspension or termination of the Plan, except with the
consent of the person to whom the Stock Award was granted.

 

11

 

14.                               EFFECTIVE
DATE OF PLAN.

 

The Plan shall
become effective on the date on which it is adopted by the Board.

 

12Exhibit 10.35

 

MODIFICATION TO AMENDED AND RESTATED 

LOAN AND SECURITY AGREEMENT

 

This
Modification to amended and Restated Loan and Security Agreement (the
“Modification”) is entered into as of February 28, 2003, by and between
Broadvision, Inc., a Delaware corporation (the “Borrower”) and Silicon Valley
Bank, a California-chartered bank (“Bank”).

 

1.                                       DESCRIPTION
OF EXISTING INDEBTEDNESS. Among other indebtedness which may be owing by
Borrower to Bank, Borrower is indebted to Bank pursuant to that certain Amended
and Restated Loan and Security Agreement dated as of March 31, 2002 (as
may be amended from time to time, the “Loan Agreement”). The Loan Agreement
provides for, among other things, a Committed Revolving Line in the original
principal amount of Twenty-Five Million Dollars ($25,000,000). Capitalized
terms used but not otherwise defined herein shall have the respective meanings
accorded to them in the Loan Agreement; provided, that hereinafter all
Indebtedness owing by Borrower to Bank under the Loan Agreement shall be
referred to as the “Indebtedness.”

 

2.                                       DESCRIPTION
OF COLLATERAL AND GUARANTIES. Repayment of the Indebtedness is secured by
the Collateral as described in the Loan Agreement and herein. Hereinafter, all
documents securing repayment of the Indebtedness, together with all other
documents evidencing or securing the Indebtedness, shall be referred to as the
“Existing Loan Documents.”

 

3.                                       DESCRIPTION
OF CHANGE IN TERMS OF EXISTING LOAN DOCUMENTS.

 

3.1                                 Interest
on Revolving Advances. Section 2.3 of the Loan Agreement is hereby amended
to read in full as follows:

 

2.3                                 Interest
Rates, Payments.

 

(a)  Revolving Advances shall accrue interest on the
aggregate principal balance thereof from time to time outstanding at a per
annum rate equal to the Prime Rate, and the Deferred Amount (if any) shall
accrue interest on the aggregate principal balance thereof from time to time
outstanding at a per annum rate equal to the Prime Rate plus one-half percent
(0.50%); provided, however, that if Borrower fails to maintain the following
minimum revenues (on a rolling six-month basis) for the corresponding six-month
periods, Revolving Advances shall accrue interest at the per annum rate of the
Prime Rate plus three-quarters percent (.075%) and the Deferred Amount, if any,
shall accrue interest at the per annum rate of the Prime Rate plus one and
one-quarter percent (1.25%): (i) $54,000,000 for the six months ending
March 31, 2003; (ii) $51,000,000 for the six months ending June 30,
2003; (iii) $55,000,000 for the six months ending September 30, 2003; (iv)
$60,000,000 for the six months ending December 31, 2003; and (v)
$63,000,000 for every six-month period thereafter.  Term Loan #1 shall accrue interest on the aggregate principal
balance thereof from time to time outstanding at a per annum rate equal to the
Prime Rate.  Term Loan #2 shall accrue
interest on the aggregate principal balance thereof from time to time
outstanding at a per annum rate equal to the Prime Rate plus one and
one-quarter percent (1.25%). After an Event of Default, Obligations shall
accrue interest at a rate equal to three percent (3.00%) above the respective
rates effective for such Obligations immediately before the Event of Default.
The interest rate shall increase or decrease when the Prime Rate changes.
Interest is computed on a 360-day year for the actual number of days elapsed.

 

(b)  Interest on outstanding Revolving Advances and
outstanding Additional Revolving Advances shall be due and payable on the 1st
Business Day of each month.  Interest on
amounts outstanding under Term Loan #1 and Term Loan #2 shall be due and
payable on the 1st Business Day of each month. 
Payments received after 12:00 noon, Pacific Time, are considered
received at the opening of business on the next Business Day. When a payment is
due on a day that is not a Business Day, the payment is due on the next
Business Day and additional fees and interest shall accrue from the initial due
date.

 

 

3.2                                 Reporting
Requirements. Section 6.2 of the Loan Agreement is hereby amended to read
in full as follows:

 

6.2                                 Financial
Statements, Reports, Certificates.

 

(a)  Borrower will deliver to Bank: (i) as soon as available,
but no later than 45 days after the last day of each calendar quarter,
company-prepared unaudited balance sheets and income statements covering the
operations of Borrower and its Subsidiaries during the period, certified by a
Responsible Officer and in a form acceptable to Bank; (ii) as soon as available
but no later than 120 days after the last day of Borrower’s fiscal year,
audited financial statements for Borrower, and its Subsidiaries prepared under
GAAP, consistently applied, together with an unqualified opinion on the
financial statements from an independent certified public accounting firm
reasonably acceptable to Bank; (iii) a prompt report of any legal actions
pending or threatened against Borrower or any Subsidiary that could result in
damages or costs to Borrower or any Subsidiary of $250,000 or more; (iv) within
45 days after the end of each calendar quarter, a complete schedule of all
accounts receivable and accounts payable agings, as well as a deferred revenue
schedule; and (v) prompt notice of any material change in the composition of
the Intellectual Property, including any subsequent ownership right of Borrower
or any Subsidiary in or to any Copyright, Patent or Trademark not shown in any
intellectual property security agreement between Borrower and Bank or knowledge
of an event that could reasonably be expected to materially adversely affect
the value of the Intellectual Property.

 

(b)  Within 45 days after the last day of each calendar
quarter, Borrower will deliver to Bank a Compliance Certificate in the form of
Exhibit C, signed by a Responsible Officer.

 

(c)  Borrower will allow Bank to audit the Collateral at
Borrower’s expense. Such audits shall be conducted one every twelve months,
commencing no later than April 30, 2003, unless an Event of Default has
occurred and is continuing (in which case the foregoing limitation on frequency
will not apply).

 

3.3                                 Deposits.
Section 6.6 of the Loan Agreement is hereby amended to read in full as follows:

 

6.6                                 Deposits.

 

Borrower will
at all times, until all Obligations are paid in full, maintain in accounts with
Bank and its Affiliates an amount equal to the greater of  (i) $60,000,000 and (ii) 75% of Borrower’s
Unrestricted Cash. In addition, Borrower will at all times maintain an
operating account with Bank.

 

3.4                                 Financial
Covenants. Section 6.7 of the Loan Agreement is hereby amended to read in
full as follows:

 

6.7                                 Financial
Covenants.

 

(a)  Until all Obligations are paid in full, Borrower will
maintain on Borrower’s balance sheet as Unrestricted Cash, cash equivalents and
long-term investments (exclusive of 
equities holdings) the following minimum amounts: (i) $80,000,000
through September 30, 2003; (ii) $75,000,000 through December 31,
2003; and (iii) $70,000,000 thereafter.

 

(b)  Until all Obligations are paid in full, Borrower shall
maintain minimum quarterly net income (calculated in accordance with GAAP but
not including charges related to the impairment of Goodwill or Intangibles) for
each of Borrower’s fiscal quarters as follows: (i) <$1,000,000> for the
fiscal quarter ending March 31, 2003; and (ii) $1.00 for each fiscal
quarter thereafter.

 

2

 

3.5                                 Definitions.  The following definitions in Section 13.1 of
the Loan Agreement are hereby amended 
to read in full as follows:

 

“Prime Rate”
is the Bank’s most recently announced “prime rate” even if that is not the
lowest rate at which the Bank makes loans or otherwise extends credit;
provided, however, that for purposes of this Agreement the Prime Rate shall
never be less than 4.25%.

 

“Revolving Maturity
Date” is February 27, 2004.

 

3.6                                 Amended
Exhibit C.  Exhibit C of the Loan
Agreement is hereby amended to read in full as attached hereto as Attachment
No. 1.

 

4.                                       CONSISTENT
CHANGES.  The Existing Loan
Documents are hereby amended wherever necessary to reflect the changes  described in Section 3 hereof.

 

5.                                       NO
DEFENSES OF BORROWER.  Borrower
agrees that, as of the date hereof, it has no defenses against the obligations
to pay any amounts of the indebtedness.

 

6.                                       CONTINUING
VALIDITY.  Borrower understands and
agrees that in modifying the Existing Loan Documents, Bank is relying upon
Borrower’s representations, warranties, and agreements, as set forth in the
Existing Loan Documents.  Except as
expressly modified pursuant to this Modification, the terms of the Existing Loan
Documents remain unchanged and in full force and effect, and hereafter the
Existing Loan Documents shall include the terms of this Modification as if set
forth therein in full.  Bank’s agreement
to  modifications to the Existing Loan
Documents pursuant to this Modification shall in no way obligate Bank to make
any future modifications to the Existing Loan Documents.  Nothing in this Modification shall
constitute a satisfaction of the Indebtedness or any portion thereof.  It is the intention of Bank and Borrower to
retain as liable parties all makers and endorsers of Existing Loan Documents,
unless the party is expressly released by Bank in writing.  No maker, endorser, or guarantor will be
released by virtue of this Modification. 
The terms of this paragraph apply not only to this Modification, but
also to all subsequent loan modification agreements.

 

7.                                       CONDITION
PRECEDENT TO EFFECTIVENESS.  Before
this Modification, and Bank’s and Borrower’s respective rights and obligations
hereunder, shall be effective Borrower shall have paid to Bank a commitment fee
of $50,000.00, plus all expenses incurred by Bank in connection with its
entering into this Modification.

 

IN WITNESS WHEREOF, each of the parties hereto has
caused its duly authorized representative to execute and deliver this
Modification as of the date first set forth above.

 

	
  BORROWER:

  	
   

  	
  BANK:

  
	
   

  	
   

  	
   

  
	
  BROADVISION, INC.,

  a Delaware corporation

  	
   

  	
  SILICON VALLEY BANK,

  a California-chartered bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
  Name:

  	
   

  	
  [ILLEGIBLE]

  	
   

  	
   

  	
  Name:

  	
  [ILLEGIBLE]

  
	
  Title:

  	
   

  	
  President & CEO

  	
   

  	
   

  	
  Title:

  	
  SVP

  
											

 

3

 

ATTACHMENT NO. 1

 

REVISED FORM OF

 

EXHIBIT C

 

COMPLIANCE
CERTIFICATE

 

	
  TO:

  	
  SILICON VALLEY BANK

  
	
  FROM:

  	
  BROADVISION, INC.

  
	
  DATED:

  	
   

  

 

The undersigned authorized officer of Broadvision,
Inc. (“Borrower”) certifies that under the terms and conditions of the Amended
and Restated Loan and Security Agreement dated as of March 1, 2002 between
Borrower and Bank (as amended from time to time, the “Agreement”), (i) Borrower
is in complete compliance for the period ending on the date first set forth
above with all required covenants except as noted below and (ii) all
representations and warranties in the Agreement are true and correct in all
material respects on this date. 
Attached are the required documents supporting the certification.  The Officer certifies that these are
prepared in accordance with Generally Accepted Accounting Principles (GAAP)
consistently applied from one period to the next except as explained in an
accompanying letter or footnotes.  The
Officer acknowledges that no borrowings may be requested at any time or date of
determination that Borrower is not in compliance with any of the terms of the
Agreement, and that compliance is determined not just at the date this
certificate is delivered.

 

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

 

	
  Reporting Covenants

  	
   

  	
  Required

  	
   

  	
  Complies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. 
  Interim financial statements + CC

  	
   

  	
  Quarterly
  within 45 days

  	
   

  	
  Yes

  	
  No

  
	
  2. 
  Annual audited financial statements + CC

  	
   

  	
  Within 120
  days of FYE

  	
   

  	
  Yes

  	
  No

  
	
  3. 
  Schedule of A/R + A/P Agings

  	
   

  	
  Quarterly
  within 45 days

  	
   

  	
  Yes

  	
  No

  
	
  4. 
  Deferred Revenue Schedule

  	
   

  	
  Quarterly
  within 45 days

  	
   

  	
  Yes

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Financial Covenants

  	
   

  	
  Required

  	
   

  	
  Complies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Minimum
  unrestricted balance sheet cash

  	
   

  	
  (i)

  	
  $80,000,000 through 9/30/03

  	
   

  	
  Yes

  	
  No

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  $75,000,000 through 12/31/03

  	
   

  	
  Yes

  	
  No

  
	
   

  	
   

  	
   

  	
  (iii)

  	
  $70,000,000 through thereafter

  	
   

  	
  Yes

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Minimum Net Income (per GAAP less charges
  related to impairment of Goodwill and Intangibles)

  	
   

  	
  (i)

  	
  <$1,000,000> for quarter ending
  3/31/03

  	
   

  	
  Yes

  	
  No

  
	
   

  	
  (ii)

  	
  $1.00 for each calendar quarter thereafter

  	
   

  	
  Yes

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deposit Covenant

  	
   

  	
  Required

  	
   

  	
  Complies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deposits with Bank and its Affiliates

  	
   

  	
  An amount equal to the greater of

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  $60,000,000
  or

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  75% of
  Borrower’s Unrestricted Cash

  	
   

  	
  Yes

  	
  No

  

 

 

	
  Have there been updates to Borrower’s intellectual property?

  	
  Yes

  	
  No

  
	
   

  	
   

  
	
  Comments Regarding Exceptions:  See Attached.

  	
  BANK USE ONLY

  
	
   

  	
   

  	
  Received by:

  	
   

  
	
   

  	
   

  	
   

  	
  AUTHORIZED
  SIGNER

  
	
   

  	
   

  	
   

  
	
  Sincerely,

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
  Broadvision, Inc.,

  	
   

  	
  Verified:

  	
   

  
	
  a Delaware corporation

  	
   

  	
   

  	
  AUTHORIZED
  SIGNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNATURE

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
  TITLE

  	
   

  	
  Compliance Status:                                                                                                  Yes                    No

  
	
   

  	
   

  	
   

  
	
  DATE

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