Document:

Bonus Plan for Executive Officers

 Exhibit 10.3 
  
 ARIBA BONUS PLAN 
  
 EXECUTIVE OFFICERS 
  
 1. Effective Date and Term. This Plan was adopted by the Compensation
Committee (the “Committee”) of the Board of Directors of Ariba, Inc. (the “Company”) on December 9, 2005, and is effective for fiscal year 2006 and subsequent fiscal years. The Plan will continue to apply until it is amended
or terminated by the Committee. The Plan supersedes all prior bonus plans applicable to individuals who are deemed to be “officers” of the Company for purposes of Section 16 of the Securities Exchange Act of 1934, as amended
(“Executive Officers”). Any other bonus plan applicable to Executive Officers previously approved by the Committee is hereby terminated. 
  
 2. Administration. The Committee administers the Plan and adopts rules and regulations to implement the Plan. The decisions of the Committee are
final and binding on all parties who have an interest in the Plan. 
  
 3. Eligibility. Participation in the Plan is limited to Executive Officers. Participation in the Plan is effective on the day the participant starts in a bonus-eligible job. Participants must be employed in a bonus-eligible position
before the first day of the last month of the fiscal half-year to be eligible to participate in the Plan for that fiscal half-year. Bonus payments will be prorated for participants who become eligible after the start of a fiscal half-year or for
participants who are on a leave of absence or sabbatical for all or part of a fiscal half-year. A participant may be removed from the Plan at any time and for any reason, at the Company’s discretion, regardless of whether he or she remains an
officer or employee of the Company. 
  
 4. Determination of
Amounts. The Plan may provide a semi-annual cash bonus that is paid based on the achievement of pre-determined Company performance objectives and individual performance factors. The amount of each participant’s semi-annual bonus is
determined as follows: 
  
 (a) An annual target
bonus amount is assigned to the participant by the Committee as soon as reasonably practicable after the beginning of a fiscal year or, if later, at the time of his or her hiring. The annual target bonus amount may be modified from time to time
thereafter by the Committee. The semi-annual target bonus amount is equal to 50% of the annual target bonus amount. 
  
 (b) Except in the case of the Chief Commercial Officer, one-half of the actual semi-annual bonus is determined on the basis of the
Company’s semi-annual operating profit score, one-quarter is determined on the basis of the Company’s semi-annual revenue score, and one-quarter is determined on the basis of performance and non-financial measures applicable to the
participant (the “MBO Portion”). “Operating profit” means after-tax income excluding (i) restructuring-related expense, (ii) amortization of acquired core technology and 

 
in-process R&D, (iii) amortization of goodwill and intangibles and (iv) amortization of stock-based compensation. 
  
 (c) As soon as reasonably practicable after the beginning of
a fiscal year, the Committee determines for each fiscal half-year in that year the levels of operating profit and revenue that will be required for operating profit and revenue scores of 0.50, 0.75, 1.00 and 2.00. If the level of operating profit or
revenue is less than the level required for a 0.50 score, the score will be zero. If the level of operating profit or revenue is greater than the amount required for a 2.00 score, the score will be 2.00. If the amount of operating profit or revenue
falls between the amounts required for a 0.50 score and a 0.75 score, between the amounts required for a 0.75 score and a 1.00 score or between the amounts required for a 1.00 score and a 2.00 score, then straight-line interpolation will be used.

  
 (d) When the actual amount of operating
profit for a fiscal half-year has been determined, the operating profit score is calculated. Likewise, when the actual amount of revenue for a fiscal half-year has been determined, the revenue score is calculated. The weighted-average score for the
fiscal half-year equals one-half of the operating profit score plus one-quarter of the revenue score. This weighted-average score is multiplied by 75% of each participant’s semi-annual target bonus amount. The result is the portion of the
participant’s semi-annual bonus based on financial measures (the “Non-MBO Portion”). 
  
 (e) After the close of each fiscal half-year, the Committee determines the MBO Portion of each participant’s semi-annual bonus, based
on the recommendations of the Company’s Chief Executive Officer (except in the case of the Chief Executive Officer). 
  
 (f) For each participant, the MBO Portion is added to the Non-MBO Portion. The result is that participant’s semi-annual bonus.

  
 (g) All calculations for the second fiscal
half-year are performed on a cumulative full-year basis. The bonus calculated on that basis is then reduced by the semi-annual bonus already paid for the first fiscal half-year. 
  
 (h) In the case of the Chief Commercial Officer, the Company’s semi-annual bookings score is added to
the other two scores described above, and each score has a weight of 25%. As soon as reasonably practicable after the beginning of the fiscal year, the Committee determines for each fiscal half-year in that year the amount of bookings that will be
required for bookings scores of 0.50, 0.75, 1.00 and 2.00. If the amount of bookings is less than the amount required for a 0.50 score, the score will be zero. If the amount of bookings is greater than the amount required for a 2.00 score, the score
will be 2.00. If the amount of bookings falls between the amounts required for a 0.50 score and a 0.75 score, between the amounts required for a 0.75 score and a 1.00 score or between the amounts required for a 1.00 score and a 2.00 score, then

  

 2 

 
straight-line interpolation will be used. The weighted-average score used to calculate the Chief Commercial Officer’s Non-MBO Portion is the average of
the operating profit, revenue and bookings scores. 
  
 (i) The Committee may adjust the amount of the Company’s semi-annual operating profit or semi-annual revenue, or both, to exclude extraordinary expenses or benefits. 
  
 5. Payment of Bonuses. Payment of the semi-annual cash bonus (if any) is targeted for May 31 and
November 30. Adjustments to this payment schedule may be made as business conditions require. 
  
 6. Employment Requirement. Unless a Severance Agreement between a participant and the Company provides otherwise, the participant must be employed
by the Company at the time of the bonus payment to receive the semi-annual cash bonus. 
  
 7. Modification or Termination of the Plan. The Committee reserves the right to modify, suspend or terminate this Plan at any time. Should an acquisition or significant business initiative change the operating
plan, this Plan may be modified and a new plan will go into effect at the start of the fiscal half-year following this event. 
  
 8. Benefits Unfunded. No amounts awarded or accrued under this Plan will be funded, set aside or otherwise segregated prior to payment. The
obligation to pay the bonuses awarded hereunder will at all times be an unfunded and unsecured obligation of the Company. Plan participants will have the status of general creditors and must look solely to the general assets of the Company for the
payment of their bonus awards. 
  
 9. Benefits
Nontransferable. No Plan participant will have the right to alienate, pledge or encumber his or her interest in this Plan, and such interest will not (to the extent permitted by law) be subject in any way to the claims of the participant’s
creditors or to attachment, execution or other process of law. 
  
 10. No Employment Rights. No action of the Company in establishing the Plan, no action taken under the Plan by the Committee and no provision of the Plan itself will be construed to grant any person the right to remain in the employ
of the Company or its subsidiaries for any period of specific duration. Rather, each employee is employed “at will,” which means that either the employee or the Company may terminate the employment relationship at any time and for any
reason, with or without cause. 
  

 3Letter Agreement - Edward Kinsey

 Exhibit 10.4 
  
 November 29, 2000 
  
 Dear Ed: 
  
 I was saddened by your decision to move out of the role of Chief Financial Officer of Ariba, Inc. (the “Company”) but understand your personal
need to be able to spend more time with your family and with the activities associated with the Kinsey Family Foundation. I would like to thank you for your many contributions to Ariba. I know of your strong feelings for Ariba and your support of
what you have helped create and appreciate your desire to provide a smooth transition to a new Chief Financial Officer (“CFO”). This letter agreement (the “Agreement”) is to confirm our agreed upon process for the transition of
your Chief Financial Officer role and your employment with the Company. 
  

	 	1.	You agree to work through, and the Company agrees to continue to employ you through and until, your Resignation Date. For purposes of this Agreement, your “Resignation
Date” shall be the date designated by the Company on or after February 1, 2001, but within a reasonable period of time after the new CFO commences employment. Although the Company may designate the Registration Date, we agree that it will
be no earlier than February 1, 2001, and no more than 120 days after the new CFO commences employment (but in no event later than April 30, 2001). On the Resignation Date, you will cease being an employee of the Company and you will be paid any
earned but unpaid salary and accrued vacation pay as of the Resignation Date. You will continue to be paid your current salary and provided all employee benefits for which you are eligible through and until the Resignation Date.

  

	 	2.	 You will continue to report directly to me during the remainder of your employment with the Company. Effective immediately, (i) you will no longer have the
title of CFO, (ii) you will no longer have any day-to-day responsibilities as the Company’s CFO or any duties as the Company’s stock compliance officer after the date of this Agreement, and (iii) you will not be required to
report to the office. Rather, you may work from home unless you choose otherwise. You will provide consulting services as requested by the Company concerning (i) assisting investors or otherwise helping the Company’s relationship with
investors (including attending the analyst call for the Company’s fiscal quarter ending December 31, 2000, in January 2001) and (ii) taking steps reasonably necessary to facilitate the transition to a new CFO (such as resigning as a
director of the Company’s subsidiaries and as an authorized signatory on the Company’s bank accounts). At your request, all communications between you and me shall be through Craig Schmitz. You agree to comply with all of the
Company’s policies through and until the 

	 	 
Resignation Date. However, we both agree that you will not be required to work more than 20 hours a week, but you may do so if you choose.

  

	 	3.	The Company will reimburse you for any and all past and future reasonable business expenses, and you agree to submit all necessary documents regarding such expenses directly to
Craig Schmitz for his sole review and approval in accordance with the Company’s expense reimbursement policy. 

  

	 	4.	You understand and agree that you were granted an option to purchase 640,000 shares of the Company’s common stock on January 27, 1999 at an exercise price of $0.5938 per
share and you are currently vested in 64,000 of those shares. You exercised the option as to 64,000 shares. You were also granted an option to purchase 50,000 shares of the Company’s common stock on April 17, 2000 at an exercise price of
$54.4375 per share and you are currently vested in 7,292 shares. You have not exercised this option as to any shares. You will continue to vest in the shares under both options through and until your Resignation Date. You will have until three
months after the Resignation Date to exercise the options to the extent vested. 

  

	 	  	Provided you do not resign your employment prior to January 31, 2001, you will vest in an additional 128,000 shares under the fist option and in an additional 3,125 additional
shares under the second option on that date. Provided that you do not resign your employment prior to the Resignation Date, then as of the Resignation Date, you will be immediately vested in an additional 192,000 share sunder the first option and an
additional 12,500 shares under the second option (in each case in addition to the shares you vest pursuant to the immediately preceding sentence). 

  

	 	  	Your participation in the Company’s Employee Stock Purchase Plan will continue through the Resignation Date or any earlier termination of employment or any earlier reduction in
hours worked to 20 hours per week or fewer. Any payroll deductions accumulated but not used to purchase shares as of your last day worked shall be refunded to you on your last day of employment. You acknowledge that you have no other stock rights in
the Company (or any parent or subsidiary) other than those rights enumerated in this paragraph and other than shares you own and that are in your possession and all terms, conditions and limitations applicable to the options pursuant to your stock
option agreements and the Company’s 1996 Stock Plan or 1999 Equity Incentive Plan shall remain in full force and effect. All terms, conditions and limitations applicable to the purchase rights pursuant to the Company’s Employee Stock
Purchase Plan shall remain in full force and effect. All share numbers in this paragraph are subject to adjustment in accordance with the principals set forth in Article 11(a) of the 1999 Equity Incentive Plan. 

	 	5.	You agree that the only payments and benefits that you are entitled to receive from the Company in the future are those specified in this letter or the terms of the Company benefit
plans at issue. You will be entitled to continue your medical coverage under COBRA after your Resignation Date. 

  

	 	6.	In consideration for the Company’s agreement to vest you in the additional option shares described above, its agreement to continue your employment through and until the
Resignation Date and the release of claims set forth below, you waive and release and promise never to assert any claims or causes of action, whether or not now known, against the Company or its predecessors, successors, or past or present
subsidiaries, officers, directors, agents, employees and assigns, with respect to any matter, including but not limited to, any matter arising out of or connected with your employment with the Company or the resignation of that employment, including
without limitation, claims of wrongful discharge, emotional distress, defamation, fraud, breach of contract, breach of the covenant of good faith and fair dealing, any claims of discrimination or harassment based on sex, age, race, national origin,
disability or on any other basis, under Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment and Housing Act, the Age Discrimination in Employment Act of 1967, as amended, and all other laws and regulations relating
to employment. Furthermore, we also agree that nothing in this Agreement waives any rights you have to (i) unemployment or workers’ compensation benefits; (ii) indemnity and defense rights under CALIFORNIA LABOR CODE
Section 2802, the Company By-laws or any other written agreement between you and the Company; and (iii) vested benefits under any ERISA benefit plan such as, for instance, a section 401(k) plan; all such rights are expressly reserved by
you. 

  

	 	  	The Company waives and releases and promises never to assert any claims or causes of action, whether or not now known, against you with respect to any matter, including but not
limited to, any matter arising out of or connected with your employment with the Company or the termination of that employment, including without limitation, claims of defamation, fraud, breach of contract or breach of the covenant of good faith and
fair dealing. 

  

	 	  	You and the Company understand that nothing in this agreement prohibits you or the Company from bringing any claims against the other arising out of any alleged breach of this
agreement and that such claims shall be resolved as set forth in paragraph 7 below. 

  

	 	7.	 Any controversy involving the construction or application of any terms, covenants or conditions of this letter, or any claims arising out of any alleged breach of
this letter, will be governed by the rules of the American Arbitration Association and submitted to and settled by final and binding 

	 	 
arbitration in Santa Clara County, California, except that any alleged breach of the Company’s Proprietary Information and Inventions Agreement shall
not be submitted to arbitration and instead the Company may seek all legal and equitable remedies, including without limitation, injunctive relief. 

  

	 	8.	You and the Company expressly waive and release any and all rights and benefits under Section 1542 of the Civil Code of the State of California (or any analogous law of any
other state), 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.” 

  

	 	9.	Nothing contained in this letter shall constitute or be treated as an admission by you or the Company of liability, of any wrongdoing, or of any violation of law.

  

	 	10.	The Company agrees that during the remainder of your employment with the Company and at all times thereafter it shall indemnify you to the full extent required by applicable law.

  

	 	11.	At all times in the future, you will remain bound by the Company’s Proprietary Information and Invention Agreement dated September 17, 1996, a copy of which is attached.

  

	 	12.	You agree that until the later of your Resignation Date or December 31, 2001, you agree not to, directly or indirectly on behalf of yourself or any other party, solicit, induce or
encourage any employee or consultant to terminate any employment or business relationship with the Company for any reason. 

  

	 	13.	You agree that at all times in the future, you will not make any derogatory remarks regarding the Company or its officers, directors, products or business practices. The Company
agrees that at all times in the future its officers and directors will not make any derogatory remarks regarding you or your employment with the Company to any party inside or outside of the Company. 

  

	 	14.	You agree that you will not disclose to others the fact or terms of this letter, except that you may disclose such information to your attorneys or accountants. Also, you may
disclose this Agreement to the extent required by law. 

  

	 	15.	 You agree that except as expressly provided in this letter, this letter renders null and void any and all prior agreements between you and the Company regarding
your employment. You and the Company agree that this letter agreement constitutes the entire agreement between you and the Company regarding the subject matter of this agreement, and that this 

	 	 
letter agreement may be modified only in a written document signed by you and a duly authorized officer of the Company. 

  

	 	16.	This agreement shall be construed and interpreted in accordance with the laws of the State of California. 

  

	 	17.	This agreement may be executed in counterparts, each of which shall be an original, but all of which together shall constitute one agreement. 

  

	 	18.	You have up to twenty-one (21) days after receipt of this letter within which to review it, and to discuss it with an attorney of your own choosing regarding whether or not you
wish to execute it. Furthermore, you have seven (7) days after you have signed this letter during which time you may revoke this agreement. 

  

	 	19.	If you wish to revoke this agreement, you may do so by delivering a letter of revocation to me. Because of this revocation period, you understand that the agreement set forth in
this letter shall not become effective or enforceable until the eighth day after the date you sign this letter. 

  
 Please indicate your agreement with the above terms by signing below. 
  
 Sincerely, 
  
 /s/ Keith J.
Krach                     
  
 Keith J. Krach 
  
 My signature below signifies my agreement with the above terms. Furthermore, I acknowledge that I have read and understand this letter and that I sign
this release of all claims voluntarily, with full appreciation that at no time in the future may I pursue any of the rights I have waived in this release. 
  

									
					
	Signed:	 	/s/    Edward P. Kinsey	 	 	 	 	 	Dated: November 29, 2000.
	 	 	Edward P. Kinsey

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