Document:

Prepared by R.R. Donnelley Financial -- Non-Employee Director Change of Control Plan

 Exhibit 10.13 
 NON-EMPLOYEE DIRECTOR CHANGE OF CONTROL PLAN

  
 Adopted January 22, 2002 
  
 This Non-Employee Director Change of Control Plan (this “Plan”) was adopted by the Board of Directors of Vitria Corporation (the “Company”) at a meeting held in Sunnyvale, California on January 22,
2002. 
  
 BACKGROUND OF THE PLAN 
  
 The Company draws upon the knowledge, experience and objective advice of its non-employee directors (“Directors”) in order to manage its business for the benefit of the Company’s stockholders. 
  
 Due to the widespread awareness of the possibility of mergers, acquisitions and other strategic alliances, change of control is increasingly an issue in
competitive recruitment and retention efforts. 
  
 The Company recognizes that a change of control or other event that could
substantially change the nature and structure of the Company, could result in uncertainty regarding the consequences of such an event and could adversely affect the Company’s ability to attract, retain and motivate its outside directors.

  
 The Company initiated a project in mid-summer 2001 to evaluate existing Company plans and policies, industry practices and
possible standard approaches to the retention and severance of key Directors and directors in the event of a change of control of the Company. 
  
 On January 22, 2002, the Retention Plan was approved and ratified by the Company’s Board of Directors. 
  

	1.
	 
	GENERAL 
 

  
 1.1    Defined terms.    Capitalized terms used in this Plan shall have the meanings set forth in section 4, unless the context clearly requires a different meaning. 
  
 1.2    Purpose.    The purpose of this Plan is to aid the Company in attracting, retaining and motivating
its Non-Employee Directors by providing specified benefits in the event of a Change of Control. 
  
 1.3    No employment agreement.    This Plan does not obligate the Company to continue to retain any Director for any specific period of time. 
  

	2.
	 
	CHANGE OF CONTROL EVENT 
 

  
 2.1    Acceleration of Incentive Plan Awards. 
  
 2.1.1    Acceleration at Covered Termination for Directors.    All outstanding stock options granted and restricted stock or performance shares issued by the Company prior to the Change of
Control to a Director shall have their vesting accelerated by 100% as of the date of the Change of Control. 
  
 2.2.2    Acceleration upon non-assumption in a Change of Control.    If there is a Change of Control transaction in which outstanding stock options granted and restricted stock or performance
shares issued by the Company to any Director prior to the transaction are not fully assumed by the Successor, or replaced by fully equivalent substitute options, restricted stock or performance shares, then (1) all such options and restricted stock
or performance shares shall have their vesting fully accelerated so as to be 100% vested prior to the effective date of the Change of Control, and (2) the Company shall provide reasonable prior written notice to Director of (a) the date such
unexercised options will terminate, and (b) the period during which Director may exercise the fully vested options. Alternatively, the Company may elect to deliver to Director on the effective date of the Change of Control a cash payment equal to
the difference between (i) the aggregate exercise price of Director’s unexercised options, restricted stock or performance shares, and (ii) the value of the consideration deliverable for an equivalent number of shares as a result of the Change
of Control transaction. 
 

 1 

  

	3.
	 
	DEFINITIONS 
 

  
 3.1    Capitalized terms defined.    Capitalized terms used in this Plan shall have the meanings set forth in this section 3, unless the context clearly requires a different meaning.

  
 3.2    “Change of Control” means: 
  

(a)  any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), other than a trustee or other fiduciary holding securities of the Company under an employee benefit plan of the Company, becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of securities of the Company representing 30% or more of (A) the outstanding shares of common stock of the Company or (B) the combined voting power of the Company’s then-outstanding securities; 
  
 (b)  the Company is party to a merger or consolidation which results in the holders of voting securities of the Company
outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 30% of the combined voting power of the voting securities of the
Company or such surviving entity outstanding immediately after such merger or consolidation; 
  
 (c)  the sale or disposition of all or substantially all of the Company’s assets (or consummation of any transaction having similar effect); 
  
 (d)  the dissolution or liquidation of the Company. 
  
 3.3    “Company” means Vitria Technology, Inc. and, following a Change of Control, any Successor that agrees to assume, or otherwise becomes bound to by operation of law, all the
terms and provisions of this Plan. 
  
 3.4    “Effective Date” means January 22, 2002.

  
 3.5    “Director” or “Non-Employee Director” means a member of Board of
Directors at the time of the Change who is not employed by the Company and who is considered an outside director. 
  
 3.6    “Successor” means any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company.

  

	4.
	 
	ARBITRATION 
 

  
 4.1    Disputes subject to arbitration.    Any claim, dispute or controversy arising out of this Plan, the interpretation, validity or enforceability of this Plan, or the alleged breach thereof
shall be resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration by a single mutually-agreeable arbitrator, in Santa Clara County, California, conducted by the Judicial Arbitration Mediation Services
(“JAMS”) or its successor. By participating in this Plan, Director hereby agrees and the Company hereby agrees to this arbitration procedure and each party waives its rights to resolve any such dispute through a trial by judge or jury or
by administrative proceeding. The arbitrator (a) shall have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law, and (b) shall issue a written arbitration
decision including the arbitrator’s essential findings and conclusion and a statement of the award. Nothing in this section 8.1 is intended to prevent the Company or its employees from obtaining injunctive relief in court to prevent irreparable
harm regardless of the status of an arbitration proceeding. The Company shall pay all arbitration fees. 
  
 4.2    Site of arbitration.    The site of the arbitration proceeding shall be Santa Clara County, California. 
 

 2 

  

	5.
	 
	INTERPRETATION 
 

  
 This Plan shall be
interpreted in accordance with and governed by the laws of the State of California as applied to contracts entered into and entirely to be performed within that state, except to the extent preempted by applicable federal law. 

 

	6.
	 
	SUCCESSORS AND ASSIGNS 
 

  
 6.1    Successor of the Company.    The Company will require any Successor expressly, absolutely and unconditionally to assume and agree to perform this Plan in the same manner and to the same
extent that the Company would be required to perform it if no such succession or assignment had taken place. Failure of the Company to obtain such agreement shall be a material breach of this Plan. 
  
 6.2    No assignment of rights.    Except as set forth in section 11.3, the interest of any Director in
this Plan or in any distribution to be made under this Plan may not be assigned, pledged, alienated, anticipated, or otherwise encumbered (either at law or in equity) and shall not be subject to attachment, bankruptcy, garnishment, levy, execution,
or other legal or equitable process. Any act in violation of this section 11.2 shall be void. 
  
 6.3    Heirs and representatives of Director.    An Director’s rights under this Plan shall inure to the benefit of and be enforceable by an Director’s personal and legal
representatives, executors, administrators, successors, heirs, distributees, devises and legatees. 
  

	7.
	 
	FEDERAL EXCISE TAX UNDER IRC SECTION 4999 
 

  
 If any payment or benefit Director 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 amount, 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 Director’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 Director 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. In the event that acceleration of vesting of stock award compensation is to be reduced, such acceleration
of vesting shall be canceled in the reverse order of the date of grant of Director’s stock awards unless Director 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 and Director shall jointly appoint a nationally recognized accounting firm to make the
determinations required hereunder. The Company shall bear all fees and expenses the Accountants may reasonably charge in connection with the services contemplated by this section 3. 
  
 The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Director within
fifteen (15) calendar days after the date on which Director’s right to a Payment is triggered (if requested at that time by the Company or Director) or such other time as requested by the Company or Director. 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 Director with an opinion reasonably acceptable to Director 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 Director. 
 

 3 

  
 If, notwithstanding any reduction described in this section 3, the Internal Revenue Service
(“IRS”) determines that Director is liable for the Excise Tax as a result of the receipt of the Payment, then Director shall be obligated to pay back to the Company, within thirty (30) days after a final IRS determination or in the event
that Director challenges the final IRS determination, a final judicial determination, a portion of the payment equal to the “Repayment Amount.” The Repayment Amount with respect to the payment of benefits shall be the smallest amount, if
any, as shall be required to be paid to the Company so that Director’s net after-tax proceeds with respect to any payment of benefits (after taking into account the payment of the Excise Tax and all other applicable taxes imposed on such
payment) shall be maximized. The Repayment Amount with respect to the Payment shall be zero if a Repayment Amount of more than zero would not result in Director’s net after-tax proceeds with respect to the Payment being maximized. If the Excise
Tax is not eliminated pursuant to this paragraph, Director shall pay the Excise Tax. 
  
 Notwithstanding any other provision of
this section 3, if (i) there is a reduction in the Payment as described in this section 3.2, (ii) the IRS later determines that Director is liable for the Excise Tax, the payment of which would result in the maximization of Director’s net
after-tax proceeds (calculated as if Director’s benefits previously had not been reduced), and (iii) Director pays the Excise Tax, then the Company shall pay to Director those benefits that were reduced pursuant to this section 3.2
contemporaneously or as soon as administratively possible after Director pays the Excise Tax so that Director’s net after-tax proceeds with respect to the payment of benefits is maximized, unless such payment cannot be made pursuant to the
Company’s stock plans. 
  

	8.
	 
	NOTICES 
 

  
 For purposes of this Plan,
notices and all other communications permitted or provided for in this Plan shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, as
follows: 
  
 If to the Company: 
 Vitria Technology, Inc. 

Attention: General Counsel 
 945 Stewart Drive 
 Sunnyvale, CA 94086 
  
 And if to Director, at the most recent address recorded in the records of the Company. Either party may provide the other
with notices of change of address, which shall be effective upon receipt. 
  

	9.
	 
	VALIDITY 
 

  
 Invalid
provisions.    If any one or more of the provisions (or any part thereof) of this Plan shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions (or
any part thereof) shall not in any way be affected or impaired thereby. 
  

	10.
	 
	AMENDMENT, SUSPENSION OR TERMINATION 
 

  
 At any time after the Effective Date of this Plan and prior to the date sixty (60) days before the earlier of (1) the date that the Company first publicly announces it is conducting negotiations that could lead to a Change of Control, or
(2) the date that the Company enters into a definitive agreement that would result in a Change of Control (even though still subject to approval by the Company’s stockholders and other conditions and contingencies), the Board of Directors of
the Company shall have the right to amend, suspend or terminate this Plan at any time and for any reason. Notwithstanding the preceding sentence, however, no amendment or termination of this Plan shall reduce any Director’s rights or benefits
that have accrued and become payable under this Plan before the date the amendment is adopted or this Plan is terminated, as appropriate. 
  

	11.
	 
	EFFECTIVE DATE 
 

  
 The Effective Date
of this Plan is January 22, 2002. 
 

 4Prepared by R.R. Donnelley Financial -- Employment Agreement between Paul Auvil III and Vitria

  
 Exhibit 10.14 
 [LOGO FOR VITRIA TECHNOLOGY, INC.] 
  
 February 1, 2002 
  
 Paul Auvil 
  
 Deal Paul: 
  
 This letter sets forth the substance of the agreement (the “Agreement”) between Vitria Technology,
Inc. (the “Company”) and you in connection with your potential change in employment. 
  
 TRANSITION
PERIOD.    In consideration for signing this Agreement and subject to your continued compliance with its terms you will remain an employee of the Company for the duration of the Transition Period which will
almost from 2/1/02 to 8/1/02 and you will continue to enjoy the following benefits: 
  

	 	•
	 
	You will continue to receive your current base salary ($10,416.67 per pay period). 
 

  

	 	•
	 
	You will continue to be eligible to participate in the company’s 401(k), flexible spending programs and medical, dental, vision, life, and disability insurance plans in
accordance with the plan documents and subject to the normal employee contributions. 
 

  

	 	•
	 
	During the Transition Period you will be allowed to vest in your current stock options at a rate of 50% of your normal vesting schedule. For clarification you will be
allowed to vest 50,000 shares from grant number 52 and 20,000 shares from grant number 318. 
 

  

	 	•
	 
	As of 8/1/02 your employment will be terminated and all pay, benefits, and stock vesting will immediately cease. 
 

  
 During the Transition Period, you will continue as an employee of the Company, but will no longer be in the position of Vice President & Chief Financial Officer and you will
no longer be considered an officer of the Company. During this period, you will provide all necessary assistance to, and cooperation with the Company and you will undertake such assignments as may be requested by an officer of the Company from time
to time in writing. During the Transition Period, the Company may terminate your employment for any reason, however, in that event you will continue to receive the pay, benefits, and stock vesting as outlined in the section above (Transition
Period)for the remainder of the Transition Period. 
  
 OTHER COMPENSATION OR
BENEFITS.    You acknowledge that, except as expressly provided in this Agreement, you will not receive any additional compensation, severance or benefits after the completion of the transition period.

  
 RETURN OF COMPANY
PROPERTY.    You agree to return to the Company on or prior to the end of the Transition Period, all Company property which you have had in your possession at any time, including, but not limited to,
Company files, notes, drawings, records, business plans and forecasts, training materials, competitive positioning materials, customer information, contract information, financial information, specifications, computer-recorded information, tangible
property (including, but not limited to, computers), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or embody any proprietary or confidential information of the Company (and all reproductions
thereof). 
  
 LIMITATIONS ON AUTHORITY.    You shall have no responsibilities
or authority as an employee of the Company after the completion of the transition. You hereby agree not to represent or purport to represent the Company in any manner whatsoever to any third party, including any employee of the Company, unless
authorized by the Company, in writing, to do so. 
  
 PROPRIETARY INFORMATION
OBLIGATIONS.    Both during and after the term of your employment, you will refrain from any use or disclosure of the Company’s proprietary or confidential information or materials, and you acknowledge
that you are bound by the terms of your Employee Proprietary Information and Inventions Agreement dated March 24, 1998, which is attached hereto as Exhibit A. 
  
 CONFIDENTIALITY.    The provisions of this Agreement shall be held in strictest confidence by you and the Company and shall not be publicized or disclosed in any manner whatsoever, provided,
however, that: (a) you may disclose this Agreement to your immediate family; (b) the parties may disclose this Agreement in confidence to their respective attorneys, accountants, auditors, tax preparers, and financial advisors; (c) the Company may
disclose this Agreement as necessary to fulfill standard or legally required corporate reporting or disclosure requirements; and (d) the parties may disclose this Agreement insofar as such disclosure may be necessary to enforce its terms or as
otherwise required by law. 
  
 NONSOLICITATION.    You agree that during the term of your employment and
until two (2) years after the effective date of termination, you will not, either directly or through others, solicit or attempt to solicit, recruit, or hire any person (including any entity) who is then an employee, consultant or independent
contractor of the Company or to induce such persons to terminate his, her or its relationship with the Company in order to become an employee, consultant or independent contractor to or for any other person or entity. 
  
 DUTY OF LOYALTY.    You agree that during the term of your employment (including the Transition
Period), you will not become an employee, officer, or director of, or provide any consulting or other services of any type to, nor have any financial or other interest in, any company or other entity that provides, or proposes or plans to provide,
products or services that are competitive with the products or services offered by the Company during your employment period; provided, that nothing herein shall prohibit you from owning less than one percent of a publicly-traded company that
provides competitive products or services. 
  
 NONDISPARAGEMENT.    You and the Company’s officers and
directors both agree that they will not at any time disparage the other in any manner likely to be harmful to the other, or to the personal or business reputation of the other, their directors, shareholders, agents, and employees, provided that each
party shall respond accurately and fully to any question, inquiry, or request for information when required by legal process. 

  
 RELEASE.    In exchange for the payments and other consideration under
this Agreement to which you would not otherwise be entitled, you agree to execute the Employee Agreement and Release attached hereto as Exhibit B. 
  
 MISCELLANEOUS.    This Agreement, including the Exhibits, constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to this
subject matter. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations. This Agreement may not be
modified or amended except in writing signed by both you and a duly authorized officer of the Company. This Agreement shall bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of
both you and the Company, their heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the
provision in question shall be modified by the court so as to be rendered enforceable. This Agreement shall be deemed to have been entered into and shall be construed and enforced in accordance with the laws of the State of California as applied to
contracts made and to be performed entirely within California. 
  
 If this Agreement is acceptable to you, please sign and return it to me with the attached
Employee Agreement and Release, which is part of this Agreement. 
  
 Sincerely, 
  
 VITRIA TECHNOLOGY, INC. 
  

	 /s/    JOMEI
CHANG        
 
	 	 2/2/02            
 

	 JoMei Chang, President & CEO
 	 	 Date
 

 
  
 I have read, understood, and unequivocally accept the above terms and conditions of this Separation
Agreement. 
  
 
	 /s/    PAUL AUVIL        

	 	 2/1/02            
 

	 Paul Auvil
 	 	 Date
 

 

  
 EXHIBIT A 
  
 EMPLOYMENT AGREEMENT AND PROPRIETARY INFORMATION AND INVENTIONS
AGREEMENT (omitted) 

  
 EXHIBIT B 
  
 EMPLOYEE AGREEMENT AND RELEASE 
  
 I understand and agree completely to the terms set forth in the foregoing letter. 
  
 Except as otherwise set forth in this Agreement, I hereby
release, acquit and forever discharge the Company, its parents and subsidiaries, and their respective officers, directors, agents, servants, employees, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities,
demands, causes of action, costs, expenses, attorneys fees, damages, indemnities and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in
any way related to agreements, events, acts or conduct at any time prior to and including the date this Agreement is signed, including but not limited to: all such claims and demands directly or indirectly arising out of or in any way connected with
my employment with the Company; claims or demands related to salary, bonuses, commissions, stock, stock options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any other form
of compensation claims pursuant to any federal, state or local law, statute or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination in Employment Act of 1967, as amended
(“ADEA”); the federal Americans with Disabilities Act of 1990; the California Fair Employment and Housing Act, as amended; tort law; contract law; wrongful discharge; discrimination; harassment; fraud; defamation; emotional distress; and
breach of the implied covenant of good faith and fair dealing. The release contained in this paragraph does not extend to any claims covered under my Indemnity Agreement (a copy of which is attached hereto as Exhibit C), the indemnification
provisions of the Company’s Certificate of Incorporation or Bylaws, or any of the Company’s insurance policies in effect during my employment with the Company. 
  
 In giving this release, which includes claims which may be unknown to me at present, 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 effected 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. 
  
 
	 By:
 	 	 /s/    PAUL AUVIL
 
	 	 Date:
 	 	 2/1/02
 

	  	 	 Paul Auvil

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