Document:

EXHIBIT 10.38

 

BROADVISION, INC.

EXECUTIVE
SEVERANCE BENEFIT PLAN

 

Section
1.                                          INTRODUCTION.

 

The BroadVision, Inc. Executive 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 the
BroadVision, Inc. (the “Company”) whose employment with the Company is
involuntarily terminated.  This Plan
shall supersede any severance benefit plan (except the Change of Control
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.                                          ELIGIBILITY
FOR BENEFITS.

 

(a)                                  General
Rules.  Subject to the requirements
set forth in this Section, the Company will grant severance benefits under the
Plan to Eligible Employees.

 

(i)                                    Definition
of “Eligible Employee.”  For
purposes of this Plan, an “Eligible Employee” is a regular hire employee of the
Company (i) who (a) reports directly to the CEO of the Company (“Group 1”) or
(b) is a Senior Vice President or the Vice President and Corporate Financial
Controller of the Company and does not report directly to the CEO (“Group 2”),
(ii) whose employment is terminated by the Company pursuant to an Involuntary Termination
Without Cause or a reduction in force and (ii) who is notified by the Company
in writing that he or she is eligible for participation in the Plan.  The determination of whether an employee is
an Eligible Employee shall be made by the Company, in its sole discretion, and
such determination shall be binding and conclusive on all persons.

 

(ii)                                Definition of “Involuntary Termination
Without Cause.”  For purposes
of this Plan, an “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:

 

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

 

(2)                                 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;

 

(3)                                 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;

 

1

 

(4)                                 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; or

 

(5)                                 the
Eligible Employee’s persistent unsatisfactory performance of his or her job
duties.

 

The conduct
described under clause (3), (4) or (5) 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.

 

(iii)                            In
order to be eligible to receive benefits under the Plan, an Eligible Employee
must remain on the job until his or her date of termination as scheduled by the
Company.

 

(iv)                               In
order to be eligible to receive benefits under the Plan, an Eligible Employee
also 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.

 

(b)                                  Exceptions
to Benefit Entitlement.  An
employee, including an employee who otherwise is an Eligible Employee, will not
receive benefits under the Plan (or will receive reduced benefits under the
Plan) in the following circumstances, as determined by the Company in its sole
discretion:

 

(i)                                    The
employee has executed an individually negotiated employment contract or
agreement with the Company relating to severance benefits that is in effect on
his or her termination date, in which case such employee’s severance benefit,
if any, shall be governed by the terms of such individually negotiated
employment contract or agreement and shall be governed by this Plan only to the
extent that the reduction pursuant to Section 3(c) below does not entirely
eliminate benefits under this Plan.

 

(ii)                                The
employee voluntarily terminates employment with the Company.  Voluntary terminations include, but are not
limited to, resignation, retirement or failure to return from a leave of
absence on the scheduled date.

 

(iii)                            The
employee voluntarily terminates employment with the Company in order to accept
employment with another entity that is wholly or partly owned (directly or
indirectly) by the Company.

 

(iv)                               The
employee is offered an identical or substantially equivalent or comparable
position with the Company.  For purposes
of the foregoing, a “substantially equivalent or comparable position” is one
that offers the employee substantially the same level of responsibility and
compensation.

 

2

 

(v)                                   The
employee is offered immediate reemployment by a successor to the Company  or by a purchaser of its assets, as the
case may be, following a change in ownership of the Company  or a sale of substantially all of the
assets of a division or business unit of the Company.  For purposes of the foregoing, “immediate reemployment” means
that the employee’s employment with the successor to the Company  or the purchaser of its assets, as the
case may be, results in uninterrupted employment such that the employee does
not incur a lapse in pay as a result of the change in ownership of the Company  or the sale of its assets.

 

(vi)                               The
employee is rehired by the Company prior to the date benefits under the Plan
are scheduled to commence.

 

Section
3.                                          AMOUNT
OF BENEFIT.

 

(a)                                  Severance
Benefits.  Severance benefits under
the Plan, if any, shall be provided to Eligible Employees described in Section
2 in the amount provided in Appendix A, as such Appendix A may be revised by
the Company, in its sole discretion, from time to time.

 

(b)                                  Additional
Benefits.  Notwithstanding the
foregoing, the Company may, in its sole discretion, provide benefits in
addition to those pursuant to Section 3(a) to Eligible Employees or employees
who are not Eligible Employees (“Non-Eligible Employees”) chosen by the
Company, in its sole discretion, and the provision of any such benefits to an
Eligible Employee or a Non-Eligible Employee shall in no way obligate the
Company to provide such benefits to any other Eligible Employee or to any other
Non-Eligible Employee, even if similarly situated.  If benefits under the Plan are provided to a Non-Eligible
Employee, references in the Plan to “Eligible Employee” (with the exception of
Section 3(a)) shall be deemed to refer to such Non-Eligible Employee.

 

(c)                                  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 that become payable 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) a written employment or severance
agreement with the Company, 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
this 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.  In addition to the
foregoing reductions, if an Eligible Employee becomes employed by an entity
other than the Company during the period of time in respect of which severance
benefits pursuant to Sections 3(a) and 3(b) are paid, the Eligible Employee
must

 

3

 

notify the Company in writing immediately.  Following receipt of such notification, the Company will reduce
such Eligible Employee’s unpaid severance benefits by fifty percent (50%).

 

Section
4.                                          TIME
OF PAYMENT AND FORM OF BENEFIT.

 

The Company reserves the right to determine whether
severance benefits under the Plan, if any, shall be paid in a single sum, in
installments, or in any other form and to choose the timing of such
payments.  All such payments under the
Plan will be subject to applicable withholding for federal, state and local taxes.  If an Eligible Employee is indebted to the
Company at his or her termination date, the Company reserves the right to
offset any severance payments under the Plan by the amount of such
indebtedness.  In no event shall payment
of any Plan benefit be made prior to the Eligible Employee’s termination date
or prior to the effective date of the release described in Section 2(a)(3).

 

Section
5.                                          REEMPLOYMENT.

 

In the event of an Eligible Employee’s reemployment by
the Company as an employee or return to service with the Company as an
independent contractor during the period of time in respect of which severance
benefits pursuant to Sections 3(a) and 3(b) have been paid, the Company, in its
sole and absolute discretion, may require such Eligible Employee to repay to
the Company all or a portion of such severance benefits as a condition of
reemployment or resumption of service.

 

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

 

(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 this Plan (including Appendix A) or
the benefits provided hereunder at any time; provided, however, that no
such amendment or termination shall affect the right to any unpaid benefit of
any Eligible Employee whose termination date has occurred prior to amendment or
termination of the Plan.  Any action
amending or terminating the Plan shall be in writing and executed by the Chief
Executive Officer or Senior Vice President of Human Resources of the Company.

 

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.

 

4

 

Section
8.                                          LEGAL
CONSTRUCTION.

 

This 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 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.

 

5

 

(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

 

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

 

6

 

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,
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 511.

 

(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) 261-5000.  The Plan
Administrator is the named fiduciary charged with the responsibility for
administering the Plan.

 

7

 

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 (note:  the Plan currently is not subject to the
requirement of filing such an annual report) 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) (note:  the Plan currently is
not subject to the requirement of filing such an annual report) and an updated
(as necessary) Summary Plan Description. 
The Administrator may make a reasonable charge for the copies; and

 

(c)                                  Receive
a summary of the Plan’s annual financial report (note:  the Plan currently is not subject to the
requirement of providing a summary annual 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
(note:  the Plan currently is not
subject to the requirement of filing such an annual report) 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.

 

8

 

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 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:

  	
   

  
				

 

9

 

For Employees Age 40 or
Older

Individual Termination

 

EXHIBIT
A

 

RELEASE
AGREEMENT

 

I
understand and agree completely to the terms set forth in the BroadVision, Inc.
Executive Severance Benefit Plan (the “Plan”).

 

I understand that this Release Agreement, together
with the Plan, constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company and me with regard to the subject matter
hereof.  I am not relying on any promise
or representation by the Company that is not expressly stated therein.  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.

 

Except as otherwise set forth in this Release
Agreement, I hereby generally and completely release the Company and its
parents, subsidiaries, successors, predecessors and affiliates, and its and
their partners, members, directors, officers, employees, stockholders,
shareholders, agents, attorneys, predecessors, 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 at any time prior to and including the date I sign this
Release Agreement.  This general release
includes, but is not limited to: (a) all claims arising out of or in any way
related to my employment with the Company or the termination of that
employment; (b) all claims related to my compensation or benefits, including
salary, bonuses, commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other ownership interests in
the Company; (c) all claims for breach of contract, wrongful termination, and
breach of the implied covenant of good faith and fair dealing; (d) all tort
claims, including claims for fraud, defamation, emotional distress, and
discharge in violation of public policy; and (e) 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 (as
amended), the federal Age Discrimination in Employment Act (as amended)
(“ADEA”), the federal Employee Retirement Income Security Act of 1974 (as
amended), and the California Fair Employment and Housing Act (as amended).  Provided,
however, that nothing in this paragraph shall be construed in any
way to release the Company from its obligation to indemnify me pursuant to
agreement or applicable law.

 

I acknowledge that I am knowingly and voluntarily
waiving and releasing any rights I may have under the ADEA, and 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 after the date I sign this Release
Agreement; (b) I should consult with an attorney prior to signing this Release
Agreement (although I may choose voluntarily not do so); (c) I have twenty-one
(21) days to consider this Release Agreement (although I may choose voluntarily
to sign this

 

1

 

Release Agreement earlier); (d) I have seven (7) days following the
date I sign this Release Agreement to revoke it by providing written notice to
an officer of the Company; and (e) this Release Agreement shall not be
effective until the date upon which the revocation period has expired, which
shall be the eighth day after I sign this Release 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 hereunder.

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
				

 

2

 

For Employees Age 40 or
Older

Group Termination

 

EXHIBIT
B

 

RELEASE
AGREEMENT

 

I
understand and agree completely to the terms set forth in the BroadVision, Inc.
Executive Severance Benefit Plan (the “Plan”).

 

I understand that this Release Agreement, together with
the Plan, constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company and me with regard to the subject matter
hereof.  I am not relying on any promise
or representation by the Company that is not expressly stated therein.  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.

 

Except as otherwise set forth in this Release
Agreement, I hereby generally and completely release the Company and its
parents, subsidiaries, successors, predecessors and affiliates, and its and
their partners, members, directors, officers, employees, stockholders,
shareholders, agents, attorneys, predecessors, 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 at any time prior to and including the date I sign this
Release Agreement.  This general release
includes, but is not limited to: (a) all claims arising out of or in any way
related to my employment with the Company or the termination of that
employment; (b) all claims related to my compensation or benefits, including
salary, bonuses, commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other ownership interests in
the Company; (c) all claims for breach of contract, wrongful termination, and
breach of the implied covenant of good faith and fair dealing; (d) all tort
claims, including claims for fraud, defamation, emotional distress, and
discharge in violation of public policy; and (e) 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 (as
amended), the federal Age Discrimination in Employment Act (as amended)
(“ADEA”), the federal Employee Retirement Income Security Act of 1974 (as
amended), and the California Fair Employment and Housing Act (as amended).  Provided,
however, that nothing in this paragraph shall be construed in any
way to release the Company from its obligation to indemnify me pursuant to
agreement or applicable law.

 

I acknowledge that I am knowingly and voluntarily
waiving and releasing any rights I may have under the ADEA, and 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 after the date I sign this Release
Agreement; (b) I should consult with an attorney prior to signing this Release
Agreement (although I may choose voluntarily not to do so); (c) I have
forty-five (45) days to consider this Release Agreement (although I may choose
voluntarily to sign this

 

1

 

Release Agreement earlier); (d) I have seven (7) days following the
date I sign this Release Agreement to revoke it by providing written notice to
an office of the Company; (e) this Release Agreement shall not be effective
until the date upon which the revocation period has expired, which shall be the
eighth day after I sign 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 were terminated
in this group termination and the ages of all employees of the Company in the
same job classification or organizational unit who were not terminated.

 

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 hereunder.

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
				

 

2

 

For Employees Age 40 or
Older

Group Termination

 

EXHIBIT
C

 

RELEASE
AGREEMENT

 

I
understand and agree completely to the terms set forth in the BroadVision, Inc.
Executive Severance Benefit Plan (the “Plan”).

 

I understand that this Release Agreement, together
with the Plan, constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company and me with regard to the subject matter
hereof.  I am not relying on any promise
or representation by the Company that is not expressly stated therein.  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.

 

Except as otherwise set forth in this Release
Agreement, I hereby generally and completely release the Company and its
parents, subsidiaries, successors, predecessors and affiliates, and its and
their partners, members, directors, officers, employees, stockholders,
shareholders, agents, attorneys, predecessors, 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 at any time prior to and including the date I sign this
Release Agreement.  This general release
includes, but is not limited to: (a) all claims arising out of or in any way
related to my employment with the Company or the termination of that
employment; (b) all claims related to my compensation or benefits, including
salary, bonuses, commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other ownership interests in
the Company; (c) all claims for breach of contract, wrongful termination, and
breach of the implied covenant of good faith and fair dealing; (d) all tort
claims, including claims for fraud, defamation, emotional distress, and discharge
in violation of public policy; and (e) 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 (as
amended), the federal Age Discrimination in Employment Act (as amended), the
federal Employee Retirement Income Security Act of 1974 (as amended), and the
California Fair Employment and Housing Act (as amended).  Provided,
however, that nothing in this paragraph shall be construed in any
way to release the Company from its obligation to indemnify me pursuant to
agreement or applicable law.

 

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 hereunder.

 

1

 

I acknowledge that to become effective, I must sign
and return this Release Agreement to the Company so that it is received not
later than fifteen (15) days following the date of my employment termination.

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
				

 

2

 

APPENDIX
A

 

BROADVISION,
INC.

EXECUTIVE
SEVERANCE BENEFIT PLAN

 

Severance benefits provided to Eligible Employees
under the BroadVision, Inc. Executive Severance Benefit Plan (the “Plan”) are
as follows:

 

1.                                      Cash
Severance Benefits.  Pursuant to Section 3(a) of the Plan, each
Eligible Employee shall receive a cash severance benefit in accordance with the
Company’s then current payroll practices as follows:

 

Group
1

 

	
  Completed Months of

  Continuous Employment

  	
   

  	
  Months of

  Base Salary

  
	
   

  	
   

  	
   

  
	
  0-3 months

  	
   

  	
  3 months

  
	
  4-12 months

  	
   

  	
  6 months

  
	
  13 or more
  months

  	
   

  	
  6 months plus
  1/4 months per each completed  month
  of  continuous employment after 12
  months up to a maximum of 9 months

  

 

Group
2

 

	
  Completed Months of

  Continuous Employment

  	
   

  	
  Months of

  Base Salary

  
	
   

  	
   

  	
   

  
	
  0-3 months

  	
   

  	
  2 months

  
	
  4-12 months

  	
   

  	
  4 months

  
	
  13 or more
  months

  	
   

  	
  4 months plus
  1/6 months per each completed month of continuous employment after 12 months
  up to a maximum of 6 months

  

 

 

Partial months of employment shall not be taken into
account in calculating the amount of any such severance benefit 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 in
calculating the amount of any severance benefit.  A break in continuous employment of whatever duration shall cause
the loss of all completed months of continuous employment prior to such break.

 

For purposes of calculating Plan benefits, “Base
Salary” shall mean the Eligible Employee’s base pay (excluding incentive pay,
premium pay, commissions, overtime, bonuses and other forms of variable
compensation), at the rate in effect during the last

 

1

 

regularly scheduled payroll period immediately
preceding the Eligible Employee’s termination date.  No Eligible Employee shall be entitled to receive more than 9
months of Base Salary under the Plan.

 

2.                                      Additional
Severance Benefits.  With respect to
an Eligible Employee who is enrolled in a health, dental, or vision plan
sponsored by the Company and who elects 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 termination of employment, the Company shall pay the
portion of premiums for the Eligible Employee’s health, dental and/or vision
plan coverage, including coverage for the Eligible Employee’s eligible
dependents, that the Company paid prior to the Eligible Employee’s termination
of employment for the same number of months as such Eligible Employee is
entitled to receive cash severance benefits as set forth in Section 1, above.

 

3.                                      COBRA
Continuation Coverage.  Each
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
termination of employment, under 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 pursuant to Section 2, above) will be applied in the same manner that
such rules would apply in the absence of this Plan.  Following the expiration of the period that the Company is
obligated to pay an Eligible Employee’s insurance premiums pursuant to Section
2 following the Eligible Employee’s termination of employment, 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.                                      Other
Employee Benefits.  All other
benefits (such as life insurance, disability coverage, and pension plan
coverage) terminate as of the Eligible Employee’s termination date (except to
the extent that a conversion privilege may be available thereunder).

 

5.                                      Reductions
Pursuant to Section 3(c) of the Plan.  The severance benefits set forth in
this Appendix A are subject to certain reductions under Section 3(c) of the
Plan.

 

2

 

The foregoing severance benefits are subject to such
change as the Company, pursuant to Section 3(a) of the Plan, may determine in
its sole and absolute discretion.  Any
such change in severance benefits shall be set forth in a revised version of
this Appendix A.

 

	
   

  	
  Appendix A
  Adopted: May 22, 2003

  
	
   

  	
   

  
	
   

  	
  BROADVISION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

3Exhibit
10.39

 

THIRD
MODIFICATION TO AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

 

This Third 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, and that certain Second Modification to Amended and Restated Loan and
Security Agreement dated as of even date herewith (as may be further amended
from time to time, the “Loan Agreement”). 
The Loan Agreement provides for, among other things, a Committed
Revolving Line in the principal amount of Twenty-Seven Million Two Hundred
Fifty Thousand Dollars ($27,250,000). Capitalized terms used but not otherwise
defined herein shall have the respective meanings accorded to them in the Loan
Agreement; provided that hereinafter all indebtedness owing by Borrower to Bank
under the Loan Agreement shall be referred to as the “Indebtedness.”

 

2.                                       DESCRIPTION OF COLLATERAL 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                                 Financial
Covenants.  Section 6.7(b) of the
Loan Agreement is hereby amended to read in full as follows:

 

(b)  Until all
Obligations are paid in full, Borrower shall maintain minimum quarterly net
income (calculated in accordance with GAAP but excluding charges related to the
impairment of Goodwill and Intangibles and any non-cash portion of
restructuring charges) for each of Borrower’s fiscal quarters as follows: (i)
<$500,000> for the fiscal quarter ending June 30, 2003; and (ii) $1.00
for each fiscal quarter thereafter.

 

3.2                                 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 Third 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 Third Modification as if set forth therein in full.  Bank’s agreement to modifications to the
Existing Loan Documents pursuant to this Third Modification shall in no way
obligate Bank to make any future modifications to the Existing Loan
Documents.  Nothing in this Third
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 Third
Modification.  The terms of this
paragraph apply not only to this Third Modification, but also to all subsequent
loan modification agreements.

 

 

7.                                       CONDITION PRECEDENT TO EFFECTIVENESS.  Before
this Third Modification, and Bank’s and Borrower’s respective rights and
obligations hereunder, shall be effective Borrower shall have paid to Bank all
Bank Expenses incurred by Bank in connection with its entering into this Third
Modification.

 

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

 

	
  BORROWER:

  	
  BANK:

  
	
   

  	
   

  
	
  BROADVISION, INC.,

  	
  SILICON VALLEY BANK,

  
	
  a Delaware corporation

  	
  a California-chartered bank

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
										

 

2

 

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 31, 2002 between Borrower and Bank (as amended from time to
time, the “Agreement”), (i) Borrower is in complete compliance for the
period ending on the date first set forth above with all required covenants
except as noted below and (ii) all representations and warranties in the
Agreement are true and correct in all material respects on this date.  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

  	
   

  	
  Actual

  	
   

  	
  Complies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.  Minimum unrestricted balance sheet cash

  	
   

  	
  (i)             $55,000,000 through 9/30/03

  	
   

  	
   

  	
   

  	
  Yes

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)          $50,000,000 through 12/31/03

  	
   

  	
   

  	
   

  	
  Yes

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)       $45,000,000 thereafter

  	
   

  	
   

  	
   

  	
  Yes

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.  Minimum Net Income

  	
   

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

  	
   

  	
   

  	
   

  	
  Yes

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)          $1.00 for each quarter thereafter

  	
   

  	
   

  	
   

  	
  Yes

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deposit Covenant

  	
   

  	
  Required

  	
   

  	
  Actual

  	
   

  	
  Complies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deposits with Bank and its Affiliates

  	
   

  	
  An amount equal to at least $40,000,000 of Borrower’s Unrestricted
  Cash, net of all borrowings under the Agreement

  	
   

  	
   

  	
   

  	
  Yes

  	
   

  	
  No

  

 

 

	
  Have there been updates
  to Borrower’s intellectual property?

  	
   

  	
   

  	
  Yes

  	
  No

  

 

	
  Comments Regarding Exceptions:  See Attached.

  	
  BANK USE ONLY

  
	
   

  	
  Received by: 

  	
   

  
	
   

  	
  AUTHORIZED SIGNER

  
	
  Sincerely,

  	
  Date: 

  	
   

  
	
   

  	
   

  
	
  Broadvision,
  Inc.,

  	
  Verified: 

  	
   

  
	
  a Delaware
  corporation

  	
   

  	
  AUTHORIZED SIGNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date: 

  	
   

  
	
  SIGNATURE

  	
   

  	
   

  
	
   

  	
   

  	
  Compliance Status:

  	
  Yes

  	
  No

  
	
  TITLE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DATE

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