Document:

Loan Agreement by and between Robert M. Calderoni and Golden Bear Real Estate

	*	CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT. SUCH PORTIONS WERE OMITTED FROM THIS FILING AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. 

  
 Exhibit 10.20

  
 LOAN AGREEMENT 
  
 This Loan Agreement (“Agreement”) is made as of February 1, 2001,
by and between Golden Bear Real Estate, L.L.C., a Delaware limited liability company (the “Lender”), and Robert M. Calderoni (the “Borrower”). 
  
 RECITALS 
  
 Borrower is borrowing from Lender, and Lender is lending to Borrower, Four Million Dollars ($4,000,000) (the “Principal Amount”). 
  
 AGREEMENT 
  
 In consideration of the mutual promises, covenants and agreements hereinafter
set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 
  
 1. Promissory Note. Subject to the terms and conditions contained herein, Borrower had executed and delivered to Lender a Promissory Note dated as
of February 1, 2001, a copy of which is attached hereto as Exhibit A and incorporated herein by reference (the “Note”). 
  
 2. Promise to Pay. 
  
 (a) As set forth in the Note, interest shall accrue from February 1, 2001 at the rate of 5.07% per annum (the Applicable Federal Rate),
compounded annually. If payment of principal or accrued interest is not made in full when due, all unpaid amounts (including principal and interest) shall bear additional interest at the maximum rate legally payable to Lender until paid in full.

  
 (b) Unless the loan repayment schedule is
accelerated pursuant to Section 3 of this Agreement or the terms of the Note, Borrower promises to pay to Lender, on November 21, 2004 (the “Maturity Date”), the unpaid and previously unforgiven Principal Amount, together with any accrued
but unpaid and previously unforgiven interest under the Note. However, the unpaid and previously unforgiven Principal Amount, together with any accrued but unpaid and previously unforgiven interest under the Note, shall be forgiven by Lender:

  
 (i) as provided in Section 2(c) below;

  
 (ii) on the date of Involuntarily Termination
(as defined in Section 7) of your employment with Ariba, Inc. (the “Company”); or 
  
 (iii) on the closing date of a Change in Control (as defined below). 
  

 1 

 (c) Borrower’s obligation to repay any remaining unpaid and previously unforgiven
Principal Amount together with any accrued but unpaid and previously unforgiven interest under the Note shall be reduced as Borrower remains employed by Company, according to the following schedule: 
  
 (i) After Borrower completes one full year of such
employment starting on November 22, 2000 and ending on November 21, 2001, 25% of the full Principal Amount and all accrued but unpaid and previously unforgiven interest on the full Principal Amount through November 21, 2001 shall be forgiven by
Lender on November 21, 2001; 
  
 (ii) After
Borrower completes each additional full year of such employment starting on November 22 each year (beginning on November 22, 2001 and ending on November 22, 2003) and ending on November 21 of the following calendar year, 25% of the full Principal
Amount and all accrued but unpaid and previously unforgiven interest on the full unpaid Principal Amount through November 21 of such following year shall be forgiven by Lender on such November 21; and 
  
 (iii) Upon termination of employment other than for Cause
after Borrower completes a partial year of such employment starting on November 22 each year (beginning on November 22, 2001 and ending on November 22, 2003) and ending before November 21 of the following calendar year, a Pro Rata Share (as defined
below) and all accrued but unpaid and previously unforgiven interest on the full unpaid Principal Amount through the date of termination of such employment shall be forgiven upon the date of termination of employment. “Pro Rata Share”
shall equal the full Principal Amount multiplied by a fraction (i) the numerator of which is the number of days between the date of termination of employment and the immediately preceding November 22 divided by (ii) the denominator of which is 1,440

  
 (d) If any payment is due on Saturday, Sunday
or a public holiday under the laws of the State of California, such payment shall be made on the next succeeding business day and such extension of time shall be included in computing interest in connection with such payment. For purposes of this
Agreement, Borrower’s employment with the Company shall be deemed to have commenced on November 22, 2000. 
  
 3. Acceleration. The then outstanding and previously unforgiven Principal Amount, together with all accrued but unpaid and previously unforgiven
interest under the Note, shall be immediately due and payable on the last day of the third month following Borrower’s Voluntary Resignation (as defined in Section 7) or Borrower’s termination of employment for Cause (as defined in Section
7). 
  
 4. Governing Law. This Agreement shall be construed
and interpreted under the laws of the State of California. 
  
 5.
Entire Agreement; Controlling Documents. This Agreement and the Note constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings
(whether oral or written or implied) which relate to the subject matter hereof. 
  

 2 

 6. Successors and Assigns. Borrower and Lender agree that all of the terms of this Agreement shall
be binding on their successors and assigns, and that the term “Borrower” and the term “Lender” as used herein shall be deemed to include as to each party for all purposes, the designees, successors, assigns, heirs, executors and
administrators of such party. Lender hereby confirms that the Note is not assignable, except to an affiliate or the family members of an affiliate. 
  
 7. Definitions. 
  
 (a) “Cause” means: 
  
 (i) Borrower’s intentional misconduct that materially harms the Company, but only if such misconduct results in Borrower’s
conviction of, or a plea of guilty or no contest to, a felony under the laws of the United States or any state of the United States after exhaustion of all appeals; or 
  
 (ii) Borrower’s intentional failure to provide services to the Company on a full-time basis (except
during any approved vacations, holidays or absences for disability, family emergency or illness), but only if: 
  
 A. such failure to provide services has caused material harm to the Company and has persisted for a period of not less than fifteen (15)
consecutive business days or thirty (30) total business days within any twelve (12) month period; 
  
 B. Borrower has received written notice from the Board of Directors signed by a majority of the non-employee directors of the Company
specifying in reasonable detail the grounds for determining that Borrower has failed to perform services to the Company on a full-time basis; 
  
 C. if requested by Borrower, an independent third-party arbitrator designated by Borrower within fifteen (15) days after receipt of such
notice and accepted by a majority of the non-employee directors of the Company (or, if Borrower does not designate an arbitrator within such fifteen (15)-day period, an arbitrator designated by a majority of the non-employee directors of the Company
within thirty (30) days after delivery of such notice and accepted by Borrower) has, within thirty (30) days after such arbitrator’s designation, (1) reviewed the factual basis for the notice from the Board of Directors and (2) made a
determination that cause for termination of Borrower exists under this paragraph; 
  
 D. upon the receipt of the written notice by Borrower notice pursuant to (B) above, Borrower has an opportunity to cure such failure
within thirty (30) days after receiving such written notice; and 
  
 E. the arbitrator has made a determination in the determination referred to in (C) above, based on a review of the relevant facts, that Borrower has failed to cure such failure during such thirty (30)-day cure period.

  

 3 

 For purposes of this subsection (a), the quality or competency of Borrower’s performance or the results obtained by
such performance shall not be relevant. The Company shall pay the fees and expenses of the arbitrator referred to in (C) above. The Lender shall have the burden of proving that Borrower’s employment has been terminated for cause. 
  
 (b) “Change in Control” means 
  
 (i) the consummation of a merger or consolidation of the
Company with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s securities outstanding immediately after such merger, consolidation or other
reorganization is owned by persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization; 
  
 (ii) the sale, transfer or other disposition of all or substantially all of the Company’s assets; or 
  
 (iii) any transaction as a result of which any person is the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least 50% of the total voting power represented by the Company’s then outstanding voting
securities. For purposes of this Paragraph (d), the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or of a Parent or Subsidiary and (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company.

  
 A transaction shall not constitute a Change in Control if its sole purpose is
to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
  
 (c) “Exchange Act” means the Securities Exchange
Act of 1934, as amended. 
  
 (d)
“Involuntary Termination” means the termination of Borrower’s employment with the Company which occurs by reason of: 
  
 (i) Borrower’s involuntary dismissal or discharge by the Company for reasons other than for Cause, or 
  
 (ii) Borrower’s death, Permanent Disability (as defined
below) or voluntary termination of employment which, in the case of voluntary termination follows (A) a change in Borrower’s position with the Company which materially reduces Borrower’s level of responsibility or results in his no longer
reporting to the Chief Executive Officer, (B) a reduction in Borrower’s level of base salary or bonus target or (C) a relocation of Borrower’s place of 
  

 4 

 employment by more than twenty-five (25) miles, provided and only if such change, reduction or relocation is effected by
the Company without Borrower’s consent. “Permanent Disability” means the Borrower’s inability due to disease or injury to perform the substantial duties of his position for a period exceeding 90 days. 
  
 (e) “Voluntary Resignation” means Borrower’s
voluntary termination of employment with Company for any reason other than reasons that would constitute an Involuntary Termination. 
  

 5 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement the day and year first above written.

  

	
	BORROWER
	
	 /s/    Robert M. Calderoni        

	

	ROBERT M. CALDERONI
	
	 19753 Minocqua Court
 Saratoga, CA 95070

	
	LENDER
	
	 /s/    [ * ]        

	

	GOLDEN BEAR REAL ESTATE, L.L.C.

  

	*	CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT. SUCH PORTIONS WERE OMITTED FROM THIS FILING AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. 

  

 6 

 EXHIBIT A TO LOAN AGREEMENT 
  
 Promissory Note 
  

 E-1Promissory Note by and between Robert M. Calderoni and Golden Bear Real Estate

 Exhibit 10.21 
  
 PROMISSORY NOTE 
  

			
	 $4,000,000
	 	 February 1, 2001
 Mountain View, California

  
 FOR VALUE RECEIVED,
the undersigned Borrower promises to pay to Golden Bear Real Estate, L.L.C. (the “Lender”), at 2025 Garcia Avenue, Mountain View, CA 94043 c/o Kevin McAuliffe, the principal sum of Four Million Dollars ($4,000,000) upon the terms and
conditions specified below. This Promissory Note (the “Note”) is entered into pursuant to that certain Loan Agreement dated as of February 1, 2001 in effect by and between Borrower and Lender, a copy of which is attached hereto as Exhibit
“A” incorporated by reference herein (the “Loan Agreement”). 
  
 1. Principal. The principal balance of the Note together with all accrued but unpaid interest owing hereunder shall be due and payable in full on November 21, 2004, subject to and in accordance with Sections 2
and 3 of the Loan Agreement. 
  
 2. Rate of Interest.
Interest shall accrue under the Note from February 1, 2001 on any unpaid principal balance at the rate of 5.07% per annum (the Applicable Federal Rate), compounded annually. 
  
 3. Prepayment. Prepayment of principal and accrued interest may be made at any time without penalty. 
  
 4. Loan Agreement. All of the terms and obligations arising under the
Loan Agreement are incorporated by reference herein. 
  
 5.
Events of Acceleration. The entire unpaid principal sum of this Note and accrued interest, irrespective of the maturity date specified herein or the Loan Agreement, shall become immediately due and payable upon one or more of the following
events: 
  
 (a) the failure of Borrower to pay
when due the principal balance owing under this Note; or 
  
 (b) the filing of a petition by or against Borrower under any provisions of the Bankruptcy Reform Act, Title 11 of the United States Code, as amended or recodified from time to time, or under any similar or other law
relating to bankruptcy, insolvency, reorganization or other relief for debtors; the appointment of a receiver, trustee, custodian or liquidator of or for any part of the assets or property of Borrower; the execution by the Borrower of a general
assignment for the benefit of creditors; the insolvency of Borrower or Borrower is generally not paying its debts as they become due; or any attachment or like levy on any property of Borrower; or 
  
 (c) the material breach of any term of the Loan Agreement or
this Note that is not cured within thirty (30) days of written notice of such material breach from Lender to Borrower. 
  

 6. Full Recourse. Borrower shall remain personally liable for the payment in full of any
indebtedness owing under this Note, and the Lender shall have recourse to any and all other assets of the Borrower to satisfy Borrower’s obligations hereunder. 
  
 7. Costs and Expenses; Attorneys’ Fees. If any action is instituted to collect this Note, the Borrower promises
to pay all reasonable costs and expenses (including reasonable attorneys’ fees) incurred by the Lender in connection with the enforcement of the Lender’s rights and/or the collection of any amounts that become due to the Lender under this
Note. 
  
 8. Waiver. No previous waiver and no failure or
delay by the Lender or Borrower in acting with respect to the terms of this Note or the Loan Agreement shall constitute a waiver of any breach, default, or failure of condition under this Note or the Loan Agreement executed in connection herewith. A
waiver of any term of this Note or the Loan Agreement must be made in writing and signed by the Lender and shall be limited to the express terms of such waiver. Borrower hereby expressly waives presentment and demand for payment at such time as any
payments are due under this Note. 
  
 Borrower is liable for
applicable taxes on all forms of compensation received as the result of the extension of this loan by the Lender and shall remit to Ariba, Inc. upon request, applicable withholding and payroll taxes. Borrower shall provide to Lender a copy of any
relevant tax returns reasonably requested by Lender relating to tax obligations arising from transactions contemplated by this Note or the Loan Agreement. 
  
 9. Conflicting Agreements. In the event of any inconsistencies between the terms of this Note and the Loan Agreement, the terms of the Loan
Agreement shall prevail. 
  
 10. Miscellaneous. 

 
 (a) Borrower and every person who assumes or guaranties
the obligations of this Note consent and agree to be bound by and comply with all promises, covenants, agreements, and provisions of this Note, and promises absolutely and unconditionally to make payments when due, whether at maturity, by
acceleration, or otherwise; 
  
 (b) The terms
“Borrower” and “Lender” shall be construed to include their respective successors and assigns. 
  

 (c) Any notice, demand, or request to Lender or Borrower hereunder shall be deemed to
have been duly given or made, and shall be deemed received if personally delivered, upon delivery, or if mailed, upon the first to occur of actual receipt or seventy-two (72) hours after deposit in the United States mail, first class, postage
prepaid addressed to Lender or Borrower as the case may be, at the addresses set forth below: 
  

			
	 To Borrower:
	 	 To Lender:

		
	 Robert M. Calderoni
	 	 Golden Bear Real Estate, L.L.C.

	 19753 Minocqua Court
 Saratoga, CA 95070
	 	 c/o Kevin McAuliffe
 My CFO
 2025 Garcia Avenue
 Mountain View, CA 94043

  
 (d)
Whenever possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Note. 
  
 (e) No single or partial exercise of any power hereunder or under this Note or the Loan Agreement, shall preclude other or further
exercises thereof or the exercise of any other power. Lender shall at all times have the right to proceed against any portion of the security for this Note in such order and in such manner as Lender may consider appropriate, without waiving any
rights with respect to any of the security. Any delay or omission on the part of Lender in exercising any right hereunder or under this Note or the Loan Agreement shall not operate as a waiver of such right, or of any other right under this Note or
the Loan Agreement. 
  

 11. Governing Law. The nature, validity, effect, and performance of this Note shall be governed by
and construed in accordance with the laws of the State of California, unless otherwise required by law. Any dispute or litigation brought to enforce or interpret the provisions of this Note shall be commenced in a court or other appropriate forum
for the resolution of such disputes located within the County of Santa Clara, California. 
  

			
	 Signature of Borrower:

	
	 /s/    Robert M. Calderoni

	ROBERT M. CALDERONI
	
	 Address:  19753 Minocqua Court
                  Saratoga, CA
95070

  

 EXHIBIT A TO PROMISSORY NOTE 
  
 Loan Agreement 
  

 E-1

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