Document:

Exhibit
10.36

 

SECOND
MODIFICATION TO AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

 

This Second Modification to
Amended and Restated Loan and Security Agreement (the “Modification”) is
entered into as of June 30, 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 amended by that certain
Modification to Amended and Restated Loan and Security Agreement dated as of
February 28, 2003 (as may be further amended from time to time, the “Loan
Agreement”).  The Loan Agreement
provides for, among other things, a Committed Revolving Line in the 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                                 Cash
Management Services Sublimit.  The
first sentence of Section 2.1.2 of the Loan Agreement is amended to read
in full as follows:

 

“Borrower
may use up to the maximum amount from time to time available under the
Committed Revolving Line (as adjusted from time to time pursuant to
paragraph (a) of Section 2.1.1.) (the “Cash Management Services
Sublimit”) for Bank’s Cash Management Services, which may include merchant
services, direct deposit of payroll, automated clearing-house transactions,
controlled disbursement accounts, business credit cards and check cashing
services, all as identified in various cash management services agreements
related to such services (“Cash Management Services”).

 

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

 

(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 (0.75%) 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) $48,000,000 for the six months ending June 30, 2003;
(ii) $48,000,000 for the six months ending September 30, 2003; and
(iii) $50,000,000 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

 

1

 

changes.  Interest is computed on a 360-day year for
the actual number of days elapsed.

 

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

 

(c)  Borrower will allow Bank to audit the
Collateral at Borrower’s expense.  Such
audits shall be conducted once every twelve months, commencing no later than
July 31, 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 at least $40,000,000 of Borrower’s
Unrestricted Cash, net of all borrowings under this Agreement.  In addition, Borrower will at all times
maintain an operating account with Bank.

 

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

 

(a)  Until all Obligations are paid in full,
Borrower will maintain the following minimum amounts on Borrower’s balance
sheet as Unrestricted Cash, cash equivalents and long-term investments
(exclusive of equities holdings), in each case net of all borrowings under this
Agreement:  (i) $55,000,000 through
September 30, 2003; (ii) $50,000,000 through December 31, 2003;
and (iii) $45,000,000 thereafter.

 

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

 

“Committed Revolving Line” is $27,250,000.

 

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, all as set
forth in the Existing Loan Documents. 
Except as expressly modified pursuant to this Second 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 Second Modification as if set forth therein in full.  Bank’s agreement to modifications to the
Existing Loan Documents pursuant to this Second Modification shall in no way
obligate Bank to make any future modifications to the Existing Loan Documents.  Nothing in this Second Modification shall
constitute a satisfaction of the Indebtedness or any portion thereof.  It is the intention of Bank and Borrower to
retain as liable parties all makers and endorsers of Existing Loan Documents,
unless the party is expressly released by Bank in writing, and no maker, endorser
or guarantor will be released by virtue of this Second Modification.  The terms of this paragraph apply not only
to this Second Modification, but also to all subsequent loan modification
agreements.

 

2

 

7.                                       CONDITION PRECEDENT TO EFFECTIVENESS.  Before
this Second 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 $2,500.00 and all Bank Expenses incurred by Bank in
connection with its entering into this Second Modification.

 

IN WITNESS WHEREOF, each of the
parties hereto has caused its duly authorized representative to execute and
deliver this Second 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/ William E. Meyer

  	
   

  	
  By:

  	
  /s/
  Arman Band

  	
   

  
	
  Name:

  	
   

  	
  William
  E. Meyer

  	
   

  	
  Name:

  	
   

  	
  Arman
  Band

  	
   

  
	
  Title:

  	
   

  	
  Chief
  Financial Officer

  	
   

  	
  Title:

  	
   

  	
  Vice
  President

  	
   

  
												

 

3EXHIBIT
10.37

 

BROADVISION, INC.

 

CHANGE OF CONTROL SEVERANCE BENEFIT
PLAN

 

Section
1.                                          INTRODUCTION.

 

The BroadVision, Inc. Change of Control Severance
Benefit Plan (the “Plan”) was established effective May 22, 2003.  The purpose of the Plan is to provide for
the payment of severance benefits to certain eligible employees of BroadVision,
Inc. (the “Company”) whose employment with the Company is terminated under
specified circumstances following a Change of Control.  Except as provided in clause (ii) of Section
4(b) below, this Plan shall supersede any severance benefit plan, policy or
practice previously maintained by the Company. 
This Plan document also is the Summary Plan Description for the Plan.

 

Section
2.                                          DEFINITIONS.

 

For purposes of the Plan, the following terms are
defined as follows:

 

(a)                                  “Annual Target Bonus” means the
Eligible Employee’s target cash bonus.

 

(b)                                  “Base
Salary” means the Eligible Employee’s annual base salary.

 

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

 

(d)                                  “Change
of Control” means the occurrence in a single transaction or in a series of
related transactions of any one or more of the following events:

 

(i)                                    any
person (within the meaning of Section 13(d) or 14(d) of the Securities Exchange
Act of 1934, as amended) becomes the owner, directly or indirectly, of
securities of the Company representing more than fifty percent (50%) of the
combined voting power of the Company’s then outstanding securities other than
by virtue of a merger, consolidation or similar transaction; provided, however, that there shall be
excluded from the foregoing any person who owns, as of the effective date of
the Plan, securities of the Company representing more than fifteen percent
(15%) of the combined voting power of the Company’s then outstanding
securities;

 

(ii)                                there
is consummated a merger, consolidation or similar transaction involving
(directly or indirectly) the Company and, immediately after the consummation of
such merger, consolidation or similar transaction, the stockholders of the
Company immediately prior thereto do not own, directly or indirectly,
outstanding voting securities representing more than fifty percent (50%) of the
combined outstanding voting power of the surviving entity in such merger,
consolidation or similar transaction or more than fifty percent (50%) of the
combined outstanding voting power of the parent of the surviving entity in such
merger, consolidation or similar transaction;

 

1

 

(iii)                            the
stockholders of the Company approve or the Board approves a plan of complete
dissolution or liquidation of the Company, or a complete dissolution or
liquidation of the Company shall otherwise occur; or

 

(iv)                               there
is consummated a sale, lease, license or other disposition of all or
substantially all of the consolidated assets of the Company and its
subsidiaries, other than a sale, lease, license or other disposition of all or
substantially all of the consolidated assets of the Company and its
subsidiaries to an entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are owned by stockholders of the
Company in substantially the same proportions as their ownership of the Company
immediately prior to such sale, lease, license or other disposition.

 

Once a Change of
Control has occurred, no future events will constitute a Change of Control for
purposes of the Plan.

 

(e)                                  “Company”
means BroadVision, Inc. or, following a Change of Control, the surviving entity
resulting from such transaction or the parent company of such surviving entity.

 

(f)                                    “Constructive
Termination” means an Eligible Employee’s voluntary termination of
employment after one of the following events (excluding clause (i) for Eligible
Employees in Level IV) occurs without the Eligible Employee’s express written
consent:

 

(i)                                    a
substantial reduction in the Eligible Employee’s duties or responsibilities
(and not simply a change in title or reporting relationships) in effect
immediately prior to the effective date of the Change of Control; provided, however, that it shall not be a
“Constructive Termination” if the Company is retained as a separate legal
entity or business unit following the effective date of the Change of Control
and the Eligible Employee holds the same position in such legal entity or
business unit as the Eligible Employee held before the effective date of the
Change of Control;

 

(ii)                                a
material reduction by the Company in the Eligible Employee’s annual base
salary, as in effect on the effective date of the Change of Control or as
increased thereafter;

 

(iii)                            any
failure by the Company to continue in effect any benefit plan or program,
including incentive plans or plans with respect to the receipt of securities of
the Company, in which the Eligible Employee was participating immediately prior
to the effective date of the Change of Control (hereinafter referred to as
“Benefit Plans”), or the taking of any action by the Company that would
adversely affect the Eligible Employee’s participation in or reduce the Eligible
Employee’s benefits under the Benefit Plans or deprive the Eligible Employee of
any fringe benefit that he or she enjoyed immediately prior to the effective
date of the Change of Control; provided,
however, that a Constructive Termination shall not be deemed to have
occurred if the Company provides for the Eligible Employee’s participation in
benefit plans and programs that, taken as a whole, are comparable to the
Benefit Plans;

 

(iv)                               a
relocation of the Eligible Employee’s business office to a location more than
fifty (50) miles from the location at which the Eligible Employee performed

 

2

 

his or her duties as of the effective date of the Change of Control,
except for required travel by the Eligible Employee on the Company’s business
to an extent substantially consistent with his or her business travel
obligations prior to the effective date of the Change of Control; or

 

(v)                                   a
material breach by the Company of any provision of any material agreement
between the Eligible Employee and the Company concerning the terms and
conditions of the Eligible Employee’s employment.

 

(g)                                 “Covered
Termination” means an Involuntary Termination Without Cause or a
Constructive Termination, either of which occurs within one (1) month prior to
or twenty-four (24) months following the effective date of a Change of Control.

 

(h)                                 “Eligible
Employee” means an employee of the Company who has been designated by the
Board as an Eligible Employee and whose employment with the Company terminates
due to a Covered Termination.

 

(i)                                    “Involuntary
Termination Without Cause” means an Eligible Employee’s involuntary
termination of employment by the Company for a reason other than Cause.  “Cause” means the occurrence of any one or
more of the following:

 

(i)                                    the
Eligible Employee’s conviction of, or plea of no contest with respect to, any
crime involving fraud, dishonesty or moral turpitude;

 

(ii)                                the
Eligible Employee’s attempted commission of or participation in a fraud or act
of dishonesty against the Company that results in (or might have reasonably
resulted in) material harm to the business of the Company;

 

(iii)                            the
Eligible Employee’s intentional, material violation of any contract or
agreement between the Eligible Employee and the Company or any statutory duty
the Eligible Employee owes to the Company; or

 

(iv)                               the
Eligible Employee’s conduct that constitutes gross misconduct, insubordination,
incompetence or habitual neglect of duties and that results in (or might have
reasonably resulted in) material harm to the business of the Company.

 

The conduct described under clause (iii) or (iv) above
will only constitute Cause if such conduct is not cured within fifteen (15)
days after the Eligible Employee’s receipt of written notice from the Company
or the Board specifying the particulars of the conduct that may constitute
Cause.

 

(j)                                    “Participation Agreement” means
the agreement executed by the Company and an Eligible Employee pursuant to
which such Eligible Employee will participate in the Plan.

 

Section
3.                                          ELIGIBILITY FOR
BENEFITS.

 

Subject to the requirement set forth in this Section,
the Company will provide the severance benefits described in Section 4 to
Eligible Employees whose employment is

 

3

 

terminated
pursuant to a Covered Termination.  In
order to be eligible to receive benefits under the Plan, an Eligible Employee
must execute a general waiver and release in substantially the form attached
hereto as Exhibit A, Exhibit B or Exhibit C, as appropriate, and such release
must become effective in accordance with its terms.  The Company, in its discretion, may modify the form of the
required release to comply with applicable law and shall determine the form of
the required release, which may be incorporated into a termination agreement or
other agreement with the Eligible Employee.

 

Section
4.                                          AMOUNT OF BENEFIT.

 

(a)                                  Severance
Benefits.  The Board shall designate each Eligible
Employee as a Level I, II, III or IV Eligible Employee.  Severance benefits under the Plan, if any,
shall be provided to each Eligible Employee based on his or her designation as
a Level I, II, III or IV Eligible Employee, in the amounts provided in Appendix
A, B, C or D, whichever is applicable.

 

(b)                                  Certain
Reductions.  The Company, in its sole discretion, shall
have the authority to reduce an Eligible Employee’s severance benefits, in
whole or in part, by any other severance benefits, pay in lieu of notice, or
other similar benefits payable to the Eligible Employee by the Company in
connection with the Eligible Employee’s termination of employment pursuant to
(i) any applicable legal requirement, including, without limitation, the Worker
Adjustment and Retraining Notification Act (the “WARN Act”), (ii) an
individually negotiated contract or agreement by and between an Eligible
Employee and the Company relating to severance benefits payable following a
Change of Control that is in effect on his or her termination date, unless the
Eligible Employee has expressly waived his or her rights under such
individually negotiated contract or agreement in the applicable Participation
Agreement, or (iii) any Company policy or practice providing for the Eligible
Employee to remain on the payroll for a limited period of time after being given
notice of the termination of the Eligible Employee’s employment.  The benefits provided under the Plan are
intended to satisfy, in whole or in part, any and all statutory obligations
that may arise out of an Eligible Employee’s termination of employment, and the
Plan Administrator shall so construe and implement the terms of the Plan.  The Company’s decision to apply such
reductions to the severance benefits of one Eligible Employee and the amount of
such reductions shall in no way obligate the Company to apply the same
reductions in the same amounts to the severance benefits of any other Eligible
Employee, even if similarly situated. 
In the Company’s sole discretion, such reductions may be applied on a
retroactive basis, with severance benefits previously paid being
recharacterized as payments pursuant to the Company’s statutory obligation.

 

Section
5.                                          LIMITATIONS ON
BENEFITS.

 

(a)                                  Mitigation.  Except as otherwise specifically provided
herein, an Eligible Employee shall not be required to mitigate damages or the
amount of any payment provided under the Plan by seeking other employment or
otherwise, nor shall the amount of any payment provided for under the Plan be
reduced by any compensation earned by an Eligible Employee as a result of
employment by another employer or any retirement benefits received by such
Eligible Employee after the date of the Covered Termination.

 

4

 

(b)                                  Termination
of Benefits.  Benefits under the
Plan shall terminate immediately if the Eligible Employee, at any time,
violates any proprietary information or confidentiality obligation to the
Company.

 

(c)                                  Non-Duplication
of Benefits.  No Eligible Employee
is eligible to receive benefits under the Plan more than one time.

 

(d)                                  Indebtedness
of Eligible Employees.  If an
Eligible Employee is indebted to the Company or an affiliate of the Company on
the date of his or her Covered Termination, the Company reserves the right to
offset any severance benefits under the Plan by the amount of such indebtedness.

 

(e)                                  Parachute
Payments.  If any payment or benefit
the Eligible Employee would receive in connection with a Change of Control from
the Company or otherwise (“Payment”) would (i) constitute a “parachute payment”
within the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”), and (ii) but for this sentence, be subject to the excise
tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment
shall be equal to the Reduced Amount. 
The “Reduced Amount” shall be either (x) the largest portion of the
Payment that would result in no portion of the Payment being subject to the
Excise Tax or (y) the largest portion, up to and including the total, of the
Payment, whichever amount, after taking into account all applicable federal,
state and local employment taxes, income taxes, and the Excise Tax (all
computed at the highest applicable marginal rate), results in the Eligible
Employee’s receipt, on an after-tax basis, of the greater amount of the Payment
notwithstanding that all or some portion of the Payment may be subject to the
Excise Tax. If a reduction in payments or benefits constituting “parachute
payments” is necessary so that the Payment equals the Reduced Amount, reduction
shall occur in the following order unless the Eligible Employee elects in
writing a different order (provided, however, that such election
shall be subject to Company approval if made on or after the date on which the
event that triggers the Payment occurs): 
reduction of cash payments; cancellation of accelerated vesting of stock
awards; reduction of employee benefits. 
If acceleration of vesting of stock award compensation is to be reduced,
such acceleration of vesting shall be cancelled in the reverse order of the
date of grant of the Eligible Employee’s stock awards unless the Eligible
Employee elects in writing a different order for cancellation.

 

The accounting firm engaged by the Company for general
audit purposes as of the day prior to the effective date of the Change of Control
shall perform the foregoing calculations. 
If the accounting firm so engaged by the Company is serving as
accountant or auditor for the individual, entity or group effecting the Change
of Control, the Company shall appoint a nationally recognized accounting firm
to make the determinations required hereunder. 
The Company shall bear all expenses with respect to the determinations
by such accounting firm required to be made hereunder.

 

The accounting firm engaged to make the determinations
hereunder shall provide its calculations, together with detailed supporting
documentation, to the Company and the Eligible Employee within fifteen (15)
calendar days after the date on which the Eligible Employee’s right to a
Payment is triggered (if requested at that time by the Company or the Eligible
Employee) or such other time as requested by the Company or the Eligible
Employee.

 

5

 

If the accounting
firm determines that no Excise Tax is payable with respect to a Payment, either
before or after the application of the Reduced Amount, it shall furnish the
Company and the Eligible Employee with an opinion reasonably acceptable to
Executive that no Excise Tax will be imposed with respect to such Payment.  Any good faith determinations of the
accounting firm made hereunder shall be final, binding and conclusive upon the
Company and the Eligible Employee.

 

Section 6.                                          RIGHT TO INTERPRET
PLAN; AMENDMENT AND TERMINATION; OTHER AGREEMENTS.

 

(a)                                  Exclusive
Discretion.  The Plan Administrator
shall have the exclusive discretion and authority to establish rules, forms,
and procedures for the administration of the Plan and to construe and interpret
the Plan and to decide any and all questions of fact, interpretation,
definition, computation or administration arising in connection with the
operation of the Plan, including, but not limited to, the eligibility to
participate in the Plan and amount of benefits paid under the Plan.  The rules, interpretations, computations and
other actions of the Plan Administrator shall be binding and conclusive on all
persons.

 

(b)                                  Amendment
or Termination.  The Company
reserves the right to amend or terminate the Plan (including Appendices A, B, C
and D) and the benefits provided hereunder at any time; provided, however, that only a written modification of
an Eligible Employee’s Participation Agreement, signed by both the Eligible
Employee and the Company, shall be effective to modify the terms of the Plan as
applicable to such Eligible Employee.

 

(c)                                  Absence of Other Agreements; Conflicts.  The Plan and an Eligible Employee’s
Participation Agreement, and any subsequently adopted amendment to either of
these documents, shall constitute the entire agreement between the Company and
such Eligible Employee regarding benefits under the Plan.  No oral statement regarding the Plan may be
relied upon by an Eligible Employee.  If
there are any conflicts between the terms of the Plan and an Eligible
Employee’s Participation Agreement, the terms of the Plan shall control.

 

Section
7.                                          NO IMPLIED
EMPLOYMENT CONTRACT.

 

The Plan shall not be deemed (i) to give any
employee or other person any right to be retained in the employ of the Company
or (ii) to interfere with the right of the Company to discharge any
employee or other person at any time, with or without cause, which right is
hereby reserved.

 

Section
8.                                          LEGAL CONSTRUCTION.

 

The Plan is intended to be governed by and shall be
construed in accordance with the Employee Retirement Income Security Act of
1974 (“ERISA”) and, to the extent not preempted by ERISA, the laws of the State
of California.

 

Section
9.                                          CLAIMS, INQUIRIES
AND APPEALS.

 

(a)                                  Applications
for Benefits and Inquiries.  Any application for benefits, inquiries
about the Plan or inquiries about present or future rights under the Plan must
be

 

6

 

submitted to the Plan Administrator in
writing by an applicant (or his or her authorized representative).  The Plan Administrator is:

 

BroadVision, Inc.

585 Broadway

Redwood City, CA 94063

 

(b)                                  Denial
of Claims.  In the event that any
application for benefits is denied in whole or in part, the Plan Administrator
must provide the applicant with written or electronic notice of the denial of
the application, and of the applicant’s right to review the denial.  Any electronic notice will comply with the
regulations of the U.S. Department of Labor. 
The notice of denial will be set forth in a manner designed to be
understood by the applicant and will include the following:

 

(i)                                    the
specific reason or reasons for the denial;

 

(ii)                                references
to the specific Plan provisions upon which the denial is based;

 

(iii)                            a
description of any additional information or material that the Plan
Administrator needs to complete the review and an explanation of why such
information or material is necessary; and

 

(iv)                               an
explanation of the Plan’s review procedures and the time limits applicable to
such procedures, including a statement of the applicant’s right to bring a
civil action under Section 502(a) of ERISA following a denial on review of the
claim, as described in Section 9(d) below.

 

This notice of denial will be given to the applicant
within ninety (90) days after the Plan Administrator receives the application,
unless special circumstances require an extension of time, in which case, the
Plan Administrator has up to an additional ninety (90) days for processing the
application.  If an extension of time
for processing is required, written notice of the extension will be furnished
to the applicant before the end of the initial ninety (90) day period.

 

This notice of extension will describe the special
circumstances necessitating the additional time and the date by which the Plan
Administrator is to render its decision on the application.

 

(c)                                  Request
for a Review.  Any person (or that
person’s authorized representative) for whom an application for benefits is
denied, in whole or in part, may appeal the denial by submitting a request for
a review to the Plan Administrator within sixty (60) days after the application
is denied.  A request for a review shall
be in writing and shall be addressed to:

 

BroadVision, Inc.

585 Broadway

Redwood City, CA 94063

 

7

 

A request for review must set forth all of the grounds
on which it is based, all facts in support of the request and any other matters
that the applicant feels are pertinent. 
The applicant (or his or her representative) shall have the opportunity
to submit (or the Plan Administrator may require the applicant to submit)
written comments, documents, records, and other information relating to his or
her claim.  The applicant (or his or her
representative) shall be provided, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant
to his or her claim.  The review shall
take into account all comments, documents, records and other information
submitted by the applicant (or his or her representative) relating to the
claim, without regard to whether such information was submitted or considered
in the initial benefit determination.

 

(d)                                  Decision
on Review.  The Plan Administrator
will act on each request for review within sixty (60) days after receipt of the
request, unless special circumstances require an extension of time (not to
exceed an additional sixty (60) days), for processing the request for a
review.  If an extension for review is
required, written notice of the extension will be furnished to the applicant
within the initial sixty (60) day period. 
This notice of extension will describe the special circumstances
necessitating the additional time and the date by which the Plan Administrator
is to render its decision on the review. 
The Plan Administrator will give prompt, written or electronic notice of
its decision to the applicant. Any electronic notice will comply with the
regulations of the U.S. Department of Labor. 
In the event that the Plan Administrator confirms the denial of the
application for benefits in whole or in part, the notice will set forth, in a
manner calculated to be understood by the applicant, the following:

 

(i)                                    the
specific reason or reasons for the denial;

 

(ii)                                references
to the specific Plan provisions upon which the denial is based;

 

(iii)                            a
statement that the applicant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other
information relevant to his or her claim; and

 

(iv)                               a
statement of the applicant’s right to bring a civil action under Section 502(a)
of ERISA.

 

(e)                                  Rules
and Procedures.  The Plan
Administrator will establish rules and procedures, consistent with the Plan and
with ERISA, as necessary and appropriate in carrying out its responsibilities
in reviewing benefit claims.  The Plan
Administrator may require an applicant who wishes to submit additional
information in connection with an appeal from the denial of benefits to do so
at the applicant’s own expense.

 

(f)                                    Exhaustion
of Remedies.  No legal action for
benefits under the Plan may be brought until the claimant (i) has submitted a
written application for benefits in accordance with the procedures described by
Section 9(a) above, (ii) has been notified by the Plan Administrator that the
application is denied, (iii) has filed a written request for a review of the
application in accordance with the appeal procedure described in Section 9(c)
above, and (iv) has been notified that the Plan Administrator has denied the
appeal.  Notwithstanding the foregoing,

 

8

 

if the Plan Administrator does not respond to a Participant’s claim or
appeal within the relevant time limits specified in this Section 9, the
Participant may bring legal action for benefits under the Plan pursuant to
Section 502(a) of ERISA.

 

Section
10.                                   BASIS
OF PAYMENTS TO AND FROM PLAN.

 

All benefits under the Plan shall be paid by the
Company.  The Plan shall be unfunded,
and benefits hereunder shall be paid only from the general assets of the
Company.

 

Section
11.                                   OTHER
PLAN INFORMATION.

 

(a)                                  Employer
and Plan Identification Numbers. 
The Employer Identification Number assigned to the Company (which is the
“Plan Sponsor” as that term is used in ERISA) by the Internal Revenue Service
is 94-3184304.  The Plan Number assigned
to the Plan by the Plan Sponsor pursuant to the instructions of the Internal
Revenue Service is 512.

 

(b)                                  Ending
Date for Plan’s Fiscal Year.  The
date of the end of the fiscal year for the purpose of maintaining the Plan’s
records is December 31.

 

(c)                                  Agent
for the Service of Legal Process. 
The agent for the service of legal process with respect to the Plan is
BroadVision, Inc., 585 Broadway, Redwood City, CA 94063.

 

(d)                                  Plan
Sponsor and Administrator.  The
“Plan Sponsor” and the “Plan Administrator” of the Plan is BroadVision, Inc.,
585 Broadway, Redwood City, CA 94063. 
The Plan Sponsor’s and Plan Administrator’s telephone number is (650)
261-5100.  The Plan Administrator is the
named fiduciary charged with the responsibility for administering the Plan.

 

Section
12.                                   STATEMENT OF ERISA RIGHTS.

 

Participants in this Plan (which is a welfare benefit
plan sponsored by BroadVision, Inc.) are entitled to certain rights and
protections under ERISA.  If you are an
Eligible Employee, you are considered a participant in the Plan and, under
ERISA, you are entitled to:

 

Receive Information About Your Plan
and Benefits

 

(a)                                 Examine,
without charge, at the Plan Administrator’s office and at other specified
locations, such as worksites, all documents governing the Plan and a copy of
the latest annual report (Form 5500 Series) filed by the Plan with the U.S.
Department of Labor and available at the Public Disclosure Room of the Employee
Benefit Security Administration;

 

(b)                                  Obtain,
upon written request to the Plan Administrator, copies of documents governing
the operation of the Plan and copies of the latest annual report (Form 5500
Series) and updated Summary Plan Description. 
The Administrator may make a reasonable charge for the copies; and

 

9

 

(c)                                  Receive
a summary of the Plan’s annual financial report.  The Plan Administrator is required by law to furnish each
participant with a copy of this summary annual report.

 

Prudent Actions by Plan Fiduciaries

 

In addition to creating rights for Plan participants,
ERISA imposes duties upon the people who are responsible for the operation of
the employee benefit plan.  The people
who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so
prudently and in the interest of you and other Plan participants and
beneficiaries.  No one, including your
employer, your union or any other person, may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a Plan
benefit or exercising your rights under ERISA.

 

Enforce Your Rights

 

If your claim for a Plan benefit is denied or ignored,
in whole or in part, you have a right to know why this was done, to obtain
copies of documents relating to the decision without charge, and to appeal any
denial, all within certain time schedules.

 

Under ERISA, there are steps you can take to enforce
the above rights.  For instance, if you
request a copy of Plan documents or the latest annual report from the Plan and
do not receive them within 30 days, you may file suit in a Federal court.  In such a case, the court may require the
Plan Administrator to provide the materials and pay you up to $110 a day until
you receive the materials, unless the materials were not sent because of reasons
beyond the control of the Administrator.

 

If you have a claim for benefits which is denied or
ignored, in whole or in part, you may file suit in a state or Federal
court.  In addition, if you disagree
with the Plan’s decision or lack thereof concerning the qualified status of a
domestic relations order or a medical child support order, you may file suit in
Federal court.

 

If it should happen that Plan fiduciaries misuse the
Plan’s money, or if you are discriminated against for asserting your rights,
you may seek assistance from the U.S. Department of Labor, or you may file suit
in a Federal court.  The court will
decide who should pay court costs and legal fees.  If you are successful, the court may order the person you have
sued to pay these costs and fees.  If
you lose, the court may order you to pay these costs and fees, for example, if
it finds your claim is frivolous.

 

Assistance with Your Questions

 

If you have any questions about the Plan, you should
contact the Plan Administrator.  If you
have any questions about this statement or about your rights under ERISA, or if
you need assistance in obtaining documents from the Plan Administrator, you
should contact the nearest office of the Employee Benefit Security
Administration, U.S. Department of Labor, listed in your telephone directory or
the Division of Technical Assistance and Inquiries, Employee Benefit Security
Administration, U.S. Department of Labor, 200 Constitution Avenue N.W.,
Washington, D.C. 20210.  You may also
obtain certain publications about your rights and 

 

10

 

responsibilities
under ERISA by calling the publications hotline of the Employee Benefit
Security Administration.

 

Section
13.                                   EXECUTION.

 

To record the adoption of the Plan as set forth
herein, effective as of  May 22,
2003, BroadVision, Inc.  has caused
its duly authorized officer to execute the same as of May 22, 2003.

 

	
   

  	
  BROADVISION,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

11

 

EXHIBIT A

 

RELEASE
AGREEMENT

(For
Employees Age 40 or Older - Individual Termination)

 

I understand and agree completely to the terms set
forth in the BroadVision, Inc. Change of Control Severance Benefit Plan (the
“Plan”).  Certain capitalized terms used
in this Release Agreement are defined in the Plan.

 

I hereby confirm my obligations under the Company’s
proprietary information and inventions agreement.

 

I acknowledge that I have read and understand Section
1542 of the California Civil Code which reads as follows: “A general release does not extend to claims
which the creditor does not know or suspect to exist in his favor at the time
of executing the release, which if known by him must have materially affected
his settlement with the debtor.” 
I hereby expressly waive and relinquish all rights and benefits under
that section and any law of any jurisdiction of similar effect with respect to
my release of any claims I may have against the Company.

 

In exchange for the benefits I am receiving under the
Plan to which I am otherwise not entitled, I hereby generally and completely
release the Company and its directors, officers, employees, shareholders,
partners, agents, attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are
in any way related to events, acts, conduct, or omissions occurring prior to my
signing this Agreement.  This general
release includes, but is not limited to: (1) all claims arising out of or in
any way related to my employment with the Company or the termination of that
employment; (2) all claims related to my compensation or benefits from the
Company, including salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, stock, stock options, or any
other ownership interests in the Company; (3) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing; (4) all tort claims, including claims for fraud,
defamation, emotional distress, and discharge in violation of public policy;
and (5) all federal, state, and local statutory claims, including claims for
discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal
Americans with Disabilities Act of 1990, the federal Age Discrimination in
Employment Act of 1967 (as amended) (“ADEA”), and the California Fair
Employment and Housing Act (as amended).

 

I acknowledge that I am knowingly and voluntarily
waiving and releasing any rights I may have under ADEA.  I also acknowledge that the consideration
given under the Plan for the waiver and release in the preceding paragraph hereof
is in addition to anything of value to which I was already entitled.  I further acknowledge that I have been
advised by this writing, as required by the ADEA, that:  (A) my waiver and release do not apply to
any rights or claims that may arise on or after the date I execute this Release
Agreement; (B) I have the right to consult with an attorney prior to executing
this Release Agreement; (C) I have twenty-one (21) days to consider this
Release Agreement (although I may choose to voluntarily execute it earlier);
(D) I

 

1

 

have seven (7) days following my execution of this Release Agreement to
revoke it; and (E) this Release Agreement shall not be effective until the date
upon which the revocation period has expired, which shall be the eighth (8th)
day after I execute this Release Agreement.

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
				

 

2

 

EXHIBIT B

 

RELEASE
AGREEMENT

( For
Employees  Under Age 40 - Individual and
Group Termination)

 

I understand and agree completely to the terms set
forth in the BroadVision, Inc. Change of Control Severance Benefit Plan (the
“Plan”).  Certain capitalized terms used
in this Release Agreement are defined in the Plan.

 

I hereby confirm my obligations under the Company’s proprietary
information and inventions agreement.

 

I acknowledge that I have read and understand Section
1542 of the California Civil Code which reads as follows: “A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the
time of executing the release, which if known by him must have materially
affected his settlement with the debtor.”  I hereby expressly waive and relinquish all rights and benefits
under that section and any law of any jurisdiction of similar effect with
respect to my release of any claims I may have against the Company.

 

In exchange for the benefits I am receiving under the
Plan to which I am otherwise not entitled, I hereby generally and completely
release the Company and its directors, officers, employees, shareholders,
partners, agents, attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are
in any way related to events, acts, conduct, or omissions occurring prior to my
signing this Agreement.  This general
release includes, but is not limited to: (1) all claims arising out of or in
any way related to my employment with the Company or the termination of that
employment; (2) all claims related to my compensation or benefits from the
Company, including salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, stock, stock options, or any
other ownership interests in the Company; (3) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing; (4) all tort claims, including claims for fraud,
defamation, emotional distress, and discharge in violation of public policy;
and (5) all federal, state, and local statutory claims, including claims for
discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal
Americans with Disabilities Act of 1990, and the California Fair Employment and
Housing Act (as amended).

 

I understand that I have seven (7) days to consider
this Release Agreement (although I may voluntarily execute it earlier).

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
				

 

 

EXHIBIT C

 

RELEASE
AGREEMENT

(For
Employees Age 40 or Older - Group Termination)

 

I understand and agree completely to the terms set
forth in the BroadVision, Inc. Change of Control Severance Benefit Plan (the
“Plan”).  Certain capitalized terms used
in this Release Agreement are defined in the Plan.

 

I hereby confirm my obligations under the Company’s
proprietary information and inventions agreement.

 

I acknowledge that I have read and understand Section
1542 of the California Civil Code which reads as follows: “A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the
time of executing the release, which if known by him must have materially
affected his settlement with the debtor.”  I hereby expressly waive and relinquish all rights and benefits
under that section and any law of any jurisdiction of similar effect with
respect to my release of any claims I may have against the Company.

 

In exchange for the benefits I am receiving under the
Plan to which I am otherwise not entitled, I hereby generally and completely
release the Company and its directors, officers, employees, shareholders,
partners, agents, attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are
in any way related to events, acts, conduct, or omissions occurring prior to my
signing this Agreement.  This general
release includes, but is not limited to: (1) all claims arising out of or in
any way related to my employment with the Company or the termination of that
employment; (2) all claims related to my compensation or benefits from the
Company, including salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, stock, stock options, or any
other ownership interests in the Company; (3) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing; (4) all tort claims, including claims for fraud,
defamation, emotional distress, and discharge in violation of public policy;
and (5) all federal, state, and local statutory claims, including claims for
discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal
Americans with Disabilities Act of 1990, the federal Age Discrimination in
Employment Act of 1967 (as amended) (“ADEA”), and the California Fair
Employment and Housing Act (as amended).

 

I acknowledge that I am knowingly and voluntarily
waiving and releasing any rights I may have under ADEA.  I also acknowledge that the consideration
given under the Plan for the waiver and release in the preceding paragraph
hereof is in addition to anything of value to which I was already
entitled.  I further acknowledge that I
have been advised by this writing, as required by the ADEA, that:  (A) my waiver and release do not apply to
any rights or claims that may arise on or after the date I execute this Release
Agreement; (B) I have the right to consult with an attorney prior to executing
this Release Agreement; (C) I have forty-five (45) days to consider this
Release Agreement (although I may choose to voluntarily execute it earlier);
(D) I

 

1

 

have seven (7) days following my execution of this Release Agreement to
revoke it; (E) this Release Agreement shall not be effective until the date
upon which the revocation period has expired, which shall be the eighth day
(8th) after I execute this Release Agreement; and (F) I have received with this
Release Agreement a detailed list of the job titles and ages of all employees
who are eligible for severance benefits under the Plan in this group
termination and the ages of all employees of the Company in the same job
classification or organizational unit who are not eligible for severance
benefits under the Plan.

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
				

 

2

 

APPENDIX A

 

BROADVISION, INC.

CHANGE OF CONTROL SEVERANCE BENEFIT PLAN

 

LEVEL I ELIGIBLE EMPLOYEES

 

Severance benefits provided to Eligible Employees
under the BroadVision, Inc. Change of Control Severance Benefit Plan (the
“Plan”) are set forth below. 
Capitalized terms not explicitly
defined in this Appendix A but defined in the Plan shall have the same
definitions as in the Plan.

 

Each Eligible Employee who is designated in the
Participation Agreement as being in Level I shall receive the following
benefits as a result of a Covered Termination:

 

1.                                      Cash
Severance Benefits.  Within ten (10) days following a
Covered Termination, such Eligible
Employee shall receive a lump sum cash payment equal to the greater of (i) the
sum of annual Base Salary and
Annual Target Bonus, as in effect on the date of the Covered Termination, or
(ii) the sum of Base Salary and Annual Target Bonus, as in effect immediately
prior to the Change of Control.  Such
payment shall be subject to all applicable tax withholding.

 

2.                                      Employee
Benefit Plans.  With respect to each
Eligible Employee who is enrolled in or participates in a health, dental or
vision plan sponsored by the Company on the date of his or her Covered
Termination, the Company shall pay the portion of premiums for the Eligible
Employee’s coverage under such plans, including coverage for the Eligible
Employee’s eligible dependents, that the Company paid prior to the Covered
Termination for twelve (12) months following the Covered Termination; provided, however, that no such premium
payments shall be made following the effective date of the Eligible Employee’s
coverage by such a plan of a subsequent employer.  Each Eligible Employee shall be required to notify the Company immediately
if the Eligible Employee becomes covered by such a plan of a subsequent
employer.

 

3.                                      COBRA Continuation Coverage.  Each Level I Eligible Employee
who is enrolled in a health, dental, or vision  plan sponsored by the
Company may be eligible to continue coverage under such health, dental, or
vision plan (or to convert to an individual policy), at the time of the
Eligible Employee’s Covered Termination, under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”). The Company will notify the Eligible
Employee of any such right to continue such coverage at the time of termination
pursuant to COBRA.  No provision of this
Plan will affect the continuation coverage rules under COBRA, except that the
Company’s payment, if any, of applicable insurance premiums pursuant to Section
2 above, will be credited as payment by the Eligible Employee for purposes of
the Eligible Employee’s payment required under COBRA.  Therefore, the period during which an Eligible Employee may elect
to continue the Company’s health, dental, or vision plan coverage at his or her
own expense under COBRA, the length of time during which COBRA coverage will be
made available to the Eligible Employee, and all other rights and obligations
of the Eligible Employee under COBRA (except the obligation to pay insurance
premiums that the Company may, in its sole discretion, elect to pay pursuant to
Section 2 above) will be applied in the same manner that such rules

 

1

 

would apply in the
absence of this Plan.  Upon the
expiration of the twelve (12) month period during which the Company pays the
Eligible Employee’s insurance premiums, the Eligible Employee will be
responsible for the entire payment of premiums required under COBRA for the duration
of the COBRA period.  For purposes of
this Section 3,  any applicable
premiums that may be paid by the Company shall not include any amounts payable
by an Eligible Employee under an Internal Revenue Code Section 125 health care
reimbursement plan, which amounts, if any, are the sole responsibility of the
Eligible Employee.

 

4.                                      Stock
Option Vesting.  Following an
Eligible Employee’s Covered Termination, the vesting and exercisability of such
Eligible Employee’s unvested outstanding stock options, beginning with the
earliest unvested installments, shall be accelerated in the following
percentages:

 

	
  Completed Years of Continuous
  Employment

  	
   

  	
  Accelerated
  Vesting Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 3

  	
   

  	
  25%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3 to 5

  	
   

  	
  37.5%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5 or more

  	
   

  	
  50%

  	
   

  

 

Partial years of employment shall not be taken into
account for purposes of the foregoing schedule nor shall service provided as an
independent contractor or as an employee of an entity or other business unit
prior to such entity’s or other business unit’s acquisition by the Company or
an affiliate of the Company be taken into account for purposes of the foregoing
schedule.  A break in continuous
employment of whatever duration shall cause the loss of all completed months of
continuous employment prior to such break.

 

5.                                      Outplacement Assistance.  Following an Eligible Employee’s
Covered Termination, the Company shall provide such Eligible Employee with
outplacement services arranged by the Company for one (1) year.

 

6.                                      Other Employee Benefits.  All other benefits (such as life insurance
coverage, disability coverage and 401(k) plan participation) terminate as of
the Eligible Employee’s Covered Termination (except the extent that a
conversion privilege may be available thereunder).

 

7.                                      Reductions
Pursuant to Section 4(b) of the Plan.  The severance benefits set forth in
this Appendix A are subject to certain reductions under Section 4(b) of the
Plan.

 

The Company reserves the right to amend this Appendix
A and the benefits provided hereunder at any time; provided, however, that only a written modification of an
Eligible Employee’s Participation Agreement, signed by both the Eligible
Employee and the Company, shall be effective to modify the terms of Appendix A
as applicable to such Eligible Employee.

 

2

 

	
   

  	
  Appendix A
  Adopted: May 22, 2003

  
	
   

  	
   

  
	
   

  	
  BROADVISION,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

3

 

APPENDIX  B

 

BROADVISION, INC.

CHANGE OF CONTROL SEVERANCE BENEFIT PLAN

 

LEVEL II ELIGIBLE EMPLOYEES

 

Severance benefits
provided to Eligible Employees under the BroadVision, Inc. Change of Control
Severance Benefit Plan (the “Plan”) are set forth below.  Capitalized
terms not explicitly defined in this Appendix B but defined in the Plan shall have
the same definitions as in the Plan.

 

Each Eligible Employee who is designated in the
Participation Agreement as being in Level II shall receive the following
benefits as a result of a Covered Termination:

 

1.                                      Cash
Severance Benefits.  Within ten (10) days following a
Covered Termination, such Level II
Eligible Employee shall receive a lump sum cash payment equal to the greater of
(i) the sum of annual Base
Salary and Annual Target Bonus, as in effect on the date of the Covered
Termination, or (ii) the sum of Base Salary and Annual Target Bonus, as in
effect immediately prior to the Change of Control.  Such payment shall be subject to all applicable tax withholding.

 

2.                                      Employee
Benefit Plans.  With respect to each Eligible Employee
who is enrolled in or participates in a health, dental or vision plan sponsored
by the Company on the date of his or her Covered Termination, the Company shall
pay the portion of premiums for the Eligible Employee’s coverage under such
plans, including coverage for the Eligible Employee’s eligible dependents, that
the Company paid prior to the Covered Termination for twelve (12) months
following the Covered Termination; provided,
however, that no such premium payments shall be made following the
effective date of the Eligible Employee’s coverage by such a plan of a
subsequent employer.  Each Eligible
Employee shall be required to notify the Company immediately if the Eligible
Employee becomes covered by such a plan of a subsequent employer.

 

3.                                      COBRA
Continuation Coverage.  Each Level
II Eligible Employee who is enrolled in a health, dental, or vision  plan
sponsored by the Company may be
eligible to continue coverage under such health, dental, or vision plan (or to
convert to an individual policy), at the time of the Eligible Employee’s
Covered Termination, under the Consolidated Omnibus Budget Reconciliation Act
of 1985 (“COBRA”). The Company will notify the Eligible Employee of any such
right to continue such coverage at the time of termination pursuant to COBRA.  No provision of this Plan will affect the
continuation coverage rules under COBRA, except that the Company’s payment, if
any, of applicable insurance premiums pursuant to Section 2 above, will be
credited as payment by the Eligible Employee for purposes of the Eligible Employee’s
payment required under COBRA. 
Therefore, the period during which an Eligible Employee may elect to
continue the Company’s health, dental, or vision plan coverage at his or her
own expense under COBRA, the length of time during which COBRA coverage will be
made available to the Eligible Employee, and all other rights and obligations
of the Eligible Employee under COBRA (except the obligation to pay insurance
premiums that the Company may, in its sole discretion, elect to pay pursuant to
Section 2 above) will be applied in the same manner that such rules

 

1

 

would apply in the
absence of this Plan.  Upon the
expiration of the twelve (12) month period during which the Company pays the
Eligible Employee’s insurance premiums, the Eligible Employee will be
responsible for the entire payment of premiums required under COBRA for the
duration of the COBRA period.  For
purposes of this Section 3,  any
applicable premiums that may be paid by the Company shall not include any
amounts payable by an Eligible Employee under an Internal Revenue Code Section
125 health care reimbursement plan, which amounts, if any, are the sole
responsibility of the Eligible Employee.

 

4.                                      Stock
Option Vesting.  Following an Eligible
Employee’s Covered Termination, the vesting and exercisability of such Eligible
Employee’s unvested outstanding stock options, beginning with the earliest
unvested installments, shall be accelerated in the following percentages:

 

	
  Completed Months of Continuous
  Employment

  	
   

  	
  Accelerated
  Vesting Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12 or less

  	
   

  	
  12.5%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  13 to 35

  	
   

  	
  25%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  36 to 59

  	
   

  	
  37.5%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  60 or more

  	
   

  	
  50%

  	
   

  

 

Partial months of employment shall not be taken into
account for purposes of the foregoing schedule nor shall service provided as an
independent contractor or as an employee of an entity or other business unit
prior to such entity’s or other business unit’s acquisition by the Company or
an affiliate of the Company be taken into account for purposes of the foregoing
schedule.  A break in continuous
employment of whatever duration shall cause the loss of all completed months of
continuous employment prior to such break.

 

5.                                      Outplacement Assistance.  Following an Eligible Employee’s Covered Termination, the Company shall
provide such Eligible Employee with outplacement services arranged by the
Company for one (1) year.

 

6.                                      Other Employee Benefits.  All other benefits (such as life insurance
coverage, disability coverage and 401(k) plan participation) terminate as of
the Eligible Employee’s Covered Termination (except the extent that a
conversion privilege may be available thereunder).

 

7.                                      Reductions
Pursuant to Section 4(b) of the Plan.  The severance benefits set forth in
this Appendix B are subject to certain reductions under Section 4(b) of the Plan.

 

The Company reserves the right to amend this Appendix
B and the benefits provided
hereunder at any time; provided, however,
that only a written modification of an Eligible Employee’s Participation
Agreement, signed by both the Eligible Employee and the Company, shall be
effective to modify the terms of Appendix B as applicable to such Eligible
Employee.

 

2

 

	
   

  	
  Appendix B
  Adopted: May 22, 2003

  
	
   

  	
   

  
	
   

  	
  BROADVISION,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

3

 

APPENDIX C

 

BROADVISION, INC.

CHANGE OF CONTROL SEVERANCE BENEFIT PLAN

 

LEVEL III ELIGIBLE EMPLOYEES

 

Severance benefits
provided to Eligible Employees under the BroadVision, Inc. Change of Control
Severance Benefit Plan (the “Plan”) are set forth below.  Capitalized
terms not explicitly defined in this Appendix C but defined in the Plan shall
have the same definitions as in the Plan.

 

Each Eligible Employee who is designated in the Participation
Agreement as being in Level III shall receive the following benefits as a
result of a Covered Termination:

 

1.                                      Cash
Severance Benefits.  Within ten (10) days following a
Covered Termination, such Eligible
Employee shall receive a lump sum cash payment equal to one-half (1/2) times
the greater of (i) the sum of annual Base Salary and Annual Target Bonus, as in effect on the date of the
Covered Termination, or (ii) the sum of Base Salary and Annual Target Bonus, as
in effect immediately prior to the Change of Control.  Such payment shall be subject to all applicable tax withholding.

 

2.                                      Employee
Benefit Plans.  With respect to each
Eligible Employee who is enrolled in or participates in a health, dental or
vision plan sponsored by the Company on the date of his or her Covered
Termination, the Company shall pay the portion of premiums for the Eligible
Employee’s coverage under such plans, including coverage for the Eligible
Employee’s eligible dependents, that the Company paid prior to the Covered Termination
for six (6) months following the Covered Termination; provided, however, that no such premium
payments shall be made following the effective date of the Eligible Employee’s
coverage by such a plan of a subsequent employer.  Each Eligible Employee shall be required to notify the Company
immediately if the Eligible Employee becomes covered by such a plan of a
subsequent employer.

 

3.                                      COBRA
Continuation Coverage.  Each Level
III Eligible Employee who is enrolled in a health, dental, or vision  plan
sponsored by the Company may be eligible to continue coverage under such
health, dental, or vision plan (or to convert to an individual policy), at the
time of the Eligible Employee’s Covered Termination, under the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”). The Company will notify
the Eligible Employee of any such right to continue such coverage at the time
of termination pursuant to COBRA.  No
provision of this Plan will affect the continuation coverage rules under COBRA,
except that the Company’s payment, if any, of applicable insurance premiums
pursuant to Section 2 above, will be credited as payment by the Eligible
Employee for purposes of the Eligible Employee’s payment required under
COBRA.  Therefore, the period during
which an Eligible Employee may elect to continue the Company’s health, dental,
or vision plan coverage at his or her own expense under COBRA, the length of
time during which COBRA coverage will be made available to the Eligible
Employee, and all other rights and obligations of the Eligible Employee under
COBRA (except the obligation to pay insurance premiums that the Company may, in
its sole discretion, elect to pay pursuant to Section 2 above) will be applied
in the same manner that such rules

 

1

 

would apply in the
absence of this Plan.  Upon the
expiration of the six (6) month period during which the Company pays the
Eligible Employee’s insurance premiums, the Eligible Employee will be
responsible for the entire payment of premiums required under COBRA for the
duration of the COBRA period.  For
purposes of this Section 3,  any
applicable premiums that may be paid by the Company shall not include any
amounts payable by an Eligible Employee under an Internal Revenue Code Section
125 health care reimbursement plan, which amounts, if any, are the sole
responsibility of the Eligible Employee.

 

4.                                      Stock
Option Vesting.  Following an
Eligible Employee’s Covered Termination, the vesting and exercisability of such
Eligible Employee’s unvested outstanding stock options, beginning with the
earliest unvested installments, shall be accelerated in the following
percentages:

 

	
  Completed Months of Continuous
  Employment

  	
   

  	
  Accelerated
  Vesting Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12 or less

  	
   

  	
  12.5%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  13 to 35

  	
   

  	
  25%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  36 to 59

  	
   

  	
  37.5%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  60 or more

  	
   

  	
  50%

  	
   

  

 

Partial months of employment shall not be taken into
account for purposes of the foregoing schedule nor shall service provided as an
independent contractor or as an employee of an entity or other business unit
prior to such entity’s or other business unit’s acquisition by the Company or
an affiliate of the Company be taken into account for purposes of the foregoing
schedule.  A break in continuous employment
of whatever duration shall cause the loss of all completed months of continuous
employment prior to such break.

 

5.                                      Outplacement Assistance.  Following an Eligible Employee’s
Covered Termination, the Company shall provide such Eligible Employee with
outplacement services arranged by the Company for six (6) months.

 

6.                                      Other Employee Benefits.  All other benefits (such as life insurance
coverage, disability coverage and 401(k) plan participation) terminate as of
the Eligible Employee’s Covered Termination (except the extent that a
conversion privilege may be available thereunder).

 

7.                                      Reductions
Pursuant to Section 4(b) of the Plan.  The severance benefits set forth in
this Appendix C are subject to certain reductions under Section 4(b) of the
Plan.

 

The Company reserves the right to amend this Appendix
C and the benefits provided hereunder at any time; provided, however, that only
a written modification of an Eligible Employee’s Participation Agreement,
signed by both the Eligible Employee and the Company, shall be effective to
modify the terms of Appendix C as applicable to such Eligible Employee.

 

2

 

	
   

  	
  Appendix C
  Adopted: May 22, 2003

  
	
   

  	
   

  
	
   

  	
  BROADVISION,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

3

 

APPENDIX D

 

BROADVISION, INC.

CHANGE OF CONTROL SEVERANCE BENEFIT PLAN

 

LEVEL IV ELIGIBLE EMPLOYEES

 

Severance benefits
provided to Eligible Employees under the BroadVision, Inc. Change of Control
Severance Benefit Plan (the “Plan”) are set forth below.  Capitalized
terms not explicitly defined in this Appendix D but defined in the Plan shall
have the same definitions as in the Plan.

 

Each Eligible Employee who is designated in the
Participation Agreement as being in Level IV shall receive the following
benefits as a result of a Covered Termination:

 

1.                                      Cash
Severance Benefits.  Within ten (10) days following a
Covered Termination, the such Eligible
Employee shall receive a lump sum cash payment equal to one-quarter (1/4) times
the greater of (i) the sum of annual Base Salary and Annual Target Bonus, as in effect on the date of the
Covered Termination, or (ii) the sum of Base Salary and Annual Target Bonus, as
in effect immediately prior to the Change of Control.  Such payment shall be subject to all applicable tax withholding.

 

2.                                      Employee
Benefit Plans.  With respect to each Eligible Employee who
is enrolled in or participates in a health, dental or vision plan sponsored by
the Company on the date of his or her Covered Termination, the Company shall
pay the portion of premiums for the Eligible Employee’s coverage under such
plans, including coverage for the Eligible Employee’s eligible dependents, that
the Company paid prior to the Covered Termination for three (3) months
following the Covered Termination; provided,
however, that no such premium payments shall be made following the
effective date of the Eligible Employee’s coverage by such a plan of a
subsequent employer.  Each Eligible
Employee shall be required to notify the Company immediately if the Eligible
Employee becomes covered by such a plan of a subsequent employer.

 

3.                                      COBRA
Continuation Coverage.  Each Level
IV Eligible Employee who is
enrolled in a health, dental, or vision  plan sponsored by the Company may be
eligible to continue coverage under such health, dental, or vision plan (or to
convert to an individual policy), at the time of the Eligible Employee’s
Covered Termination, under the Consolidated Omnibus Budget Reconciliation Act
of 1985 (“COBRA”). The Company will notify the Eligible Employee of any such
right to continue such coverage at the time of termination pursuant to
COBRA.  No provision of this Plan will
affect the continuation coverage rules under COBRA, except that the Company’s
payment, if any, of applicable insurance premiums pursuant to Section 2 above,
will be credited as payment by the Eligible Employee for purposes of the
Eligible Employee’s payment required under COBRA.  Therefore, the period during which an Eligible Employee may elect
to continue the Company’s health, dental, or vision plan coverage at his or her
own expense under COBRA, the length of time during which COBRA coverage will be
made available to the Eligible Employee, and all other rights and obligations
of the Eligible Employee under COBRA (except the obligation to pay insurance
premiums that the Company may, in its sole discretion, elect to pay pursuant to
Section 2 above) will be applied in the same manner that such rules

 

1

 

would apply in the
absence of this Plan.  Upon the
expiration of the three (3) month period during which the Company pays the
Eligible Employee’s insurance premiums, the Eligible Employee will be
responsible for the entire payment of premiums required under COBRA for the
duration of the COBRA period.  For
purposes of this Section 3,  any
applicable premiums that may be paid by the Company shall not include any
amounts payable by an Eligible Employee under an Internal Revenue Code Section
125 health care reimbursement plan, which amounts, if any, are the sole
responsibility of the Eligible Employee.

 

4.                                      Stock
Option Vesting.  Following an
Eligible Employee’s Covered Termination, the vesting and exercisability of such
Eligible Employee’s unvested outstanding stock options, beginning with the
earliest unvested installments, shall be accelerated in the following
percentages:

 

	
  Completed Months of Continuous
  Employment

  	
   

  	
  Accelerated
  Vesting Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12 or less

  	
   

  	
  12.5%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  13 to 35

  	
   

  	
  25%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  36 to 59

  	
   

  	
  37.5%

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  60 or more

  	
   

  	
  50%

  	
   

  

 

Partial months of employment shall not be taken into
account for purposes of the foregoing schedule nor shall service provided as an
independent contractor or as an employee of an entity or other business unit
prior to such entity’s or other business unit’s acquisition by the Company or
an affiliate of the Company be taken into account for purposes of the foregoing
schedule.  A break in continuous
employment of whatever duration shall cause the loss of all completed months of
continuous employment prior to such break.

 

5.                                      Outplacement Assistance.  Following an Eligible Employee’s
Covered Termination, the Company shall provide such Eligible Employee with
outplacement services arranged by the Company for six (6) months.

 

6.                                      Other Employee Benefits.  All other benefits (such as life insurance
coverage, disability coverage and 401(k) plan participation) terminate as of
the Eligible Employee’s Covered Termination (except the extent that a
conversion privilege may be available thereunder).

 

7.                                      Reductions
Pursuant to Section 4(b) of the Plan.  The severance benefits set forth in
this Appendix D are subject to certain reductions under Section 4(b) of the
Plan.

 

The Company reserves the right to amend this Appendix
D and the benefits provided hereunder at any time; provided, however, that only
a written modification of an Eligible Employee’s Participation Agreement,
signed by both the Eligible Employee and the Company, shall be effective to
modify the terms of Appendix D as applicable to the such Eligible Employee.

 

2

 

	
   

  	
  Appendix D
  Adopted: May 22, 2003

  
	
   

  	
   

  
	
   

  	
  BROADVISION,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

3

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