Document:

Release Agreement between the Registrant and David H. McCormick

 Exhibit 10.39 
  
 RELEASE AGREEMENT 
  
 This Release Agreement (this “Agreement”) is entered into on September 30, 2005, by and between Ariba, Inc. (“Ariba”), successor
in interest to FreeMarkets, Inc. (“FreeMarkets”) (together referred to herein as the “Company”) and David McCormick, (“You”). Your employment with the Company will terminate on September 30, 2005 (“Termination
Date”). 
  
 1. In exchange for the Separation Benefits (as
therein defined) and other payments provided under Sections 4.2 and 4.5 of the FreeMarkets, Inc. Change of Control Separation Plan, as modified by the January 23, 2004 Employment Agreement between You and Ariba, You agree to release the Company
(and its affiliates, subsidiaries, successors, predecessors and assigns, past and present; its and their benefit plans and any administrator, fiduciary or service provider with respect thereto (except with respect to any vested benefits thereunder),
past and present; and its and their officers, directors, shareholders, owners, employees and representatives, past and present) from any and all claims or causes of action, known or unknown, arising out of or in any way connected with or related to
Your employment (or its termination) with the Company, not including, however, any claims that may arise after the execution of this Agreement. Such claims and causes of action covered by this Agreement shall include, but are not limited to, breach
of contract, violation of public policy, impairment of economic opportunity, intentional or negligent infliction of emotional harm, or any other tort, or any federal, state, municipal or local statute or ordinance relating to employment, including,
but not limited to, any claims or causes of action arising under any federal, state or local laws, including Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000e et seq., the Age Discrimination in
Employment Act, 29 U.S.C. §621 et seq., the Americans with Disabilities Act, 29 U.S.C. §12101 et seq., the Employee Retirement Income Security Act, 29 U.S.C. §1001 et seq., any common law
contract or tort claims now or hereafter recognized, and all claims for counsel fees and costs. You do not release any claim to indemnification or advancement of expenses arising under Ariba’s Amended and Restated Certificate of Incorporation,
as amended (the “Certificate”), or Ariba’s Amended and Restated Bylaws, as amended (the “Bylaws”) or any claim to indemnification or advancement of expenses under applicable State statutes. 
  
 2. You acknowledge that neither Ariba nor FreeMarkets nor any other person or
entity released by this Agreement has (a) discriminated against You, (b) breached any contract with You, (c) committed any civil wrong (tort) against You, or (d) otherwise acted unlawfully towards You. The Company similarly
releases any claims it may have against You except for any claim to repayment of indemnification payments arising under the Certificate or the Bylaws or any claim to repayment of indemnification payments arising under applicable State statutes.

  
 3. You and the Company expressly waive and release any and all
rights and benefits under Section 1542 of the California Civil Code (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.” 

 4. You warrant that You have returned all Company property, including copies thereof, in Your possession,
custody and control. Such Company property includes all Company equipment and materials in Your home office. 
  
 5. To clarify, You agree that the only Separation Benefits to which You are entitled are as follows: 
  
 a. You will receive a payment of $1,515,000 (less all
applicable withholding taxes and other deductions) from the Company within 15 days of the Termination Date. 
  
 b. You will receive a payment of $20,422 (less all applicable withholding taxes and other deductions) which represents cash in lieu of
thirty-six months of continued medical and dental coverage for You, Your spouse and dependants. Such payment will be made within 15 days of the Termination Date. 
  
 c. You will receive a payment of $166,727 (less all applicable withholding taxes and other deductions) from
the Company within 15 days of the Termination Date. This amount represents Your final FY05 bonus payment. 
  
 d. All stock options granted to You prior to July 1, 2004 will be deemed vested and exercisable as of the Termination Date. This
means that, as of the Termination Date, of the grants received by You prior to July 1, 2004 You will be vested in options to purchase a total of 497,128 shares of stock. As of the Termination Date, You will cease vesting in all stock options
and restricted shares granted to You on or after July 1, 2004. All stock options and restricted shares that are not vested on or before the Termination Date will be forfeited. The applicable Stock Option Agreements and Restricted Stock
Agreements will continue to apply. 
  
 e. For the
stock options granted to You on or after July 1, 2004, Your vested options to purchase shares of stock will remain exercisable until the date that is three months after the Termination Date. For stock options granted to You before July 1,
2004, Your vested options to purchase shares of stock will remain exercisable until the date that is sixty days after the Termination Date. 
  
 6. You represent that You have completely and carefully read this Agreement and understand it, and that You voluntarily accept the terms of this Agreement
in exchange for the Separation Benefits and other payments set forth above, which are adequate and satisfactory to You. You represent and warrant that You have not made, or caused to be made, any assignment or transfer of any claim herein being
released. 
  
 7. You agree, covenant and promise that You have not
communicated or disclosed, and will not hereafter communicate or disclose, the terms of this Agreement to any persons with the exception of members of Your immediate family, attorney, accountant or tax advisor, each of whom shall be informed of this
confidentiality obligation and shall be bound by its terms. Notwithstanding the foregoing, You are permitted to disclose this Agreement as necessary in connection with Your efforts to obtain post-Ariba employment with the U.S. Government. You

  

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further agree that You will not disparage the Company or its products or services. This obligation extends to all statements, written or oral, whether
intended to be public or private. Notwithstanding the foregoing, Paragraph 7 shall not be construed to impair, restrict, or limit Your ability to fulfill Your responsibilities as a U.S. Government employee. 
  
 8. This Agreement contains the entire agreement between the Company and You
and, with the exception of the Non-Competition and Confidentiality Agreement executed by You on March 25, 2001, (a copy of which is attached hereto as Exhibit A), which You hereby reaffirm, this Agreement supersedes any and all prior
agreements, communications or understandings, whether oral or written, pertaining to the subject matter hereof. You represent and acknowledge that in executing this Agreement, You have not relied upon any representation or statement not set forth
herein made by any employee or representative of the Company. In the event that any one or more of the provisions contained herein shall, for any reason, be held to be unenforceable in any respect under the law of any state or of the United States
of America, such unenforceable provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect. The construction, interpretation or performance of this Agreement shall be governed by the laws of the
Commonwealth of Pennsylvania other than the conflict of laws provisions of such laws. 
  
 9. Nothing contained in this Agreement is an admission or evidence of any wrongdoing or liability on the part of the Company nor of any violation of any federal, state, local or municipal statute, regulation or
principle of common law or equity. The Company expressly denies any wrongdoing of any kind in connection with Your employment. 
  
 10. You hereby certify that (a) You have read the terms of this Agreement and that You understand its terms and effects, including the fact that You
have agreed to release and forever discharge the Company from any legal action arising out of Your employment relationship with Company, the terms and conditions of that employment relationship, and the cessation of that employment relationship;
(b) You have signed this Agreement voluntarily and knowingly in exchange for the consideration described herein, which You acknowledge as adequate and satisfactory to You and beyond that to which You are otherwise entitled; (c) You have
been advised by the Company, through this document, to consult with an attorney concerning this Agreement before signing; (d) You understand that by executing this Agreement, You are not waiving rights or claims that may arise after the date
the waiver is executed; (e) the Company has provided You with at least twenty-one (21) days within which to consider whether to sign this Agreement, and that You signed on the date indicated below after concluding that this Agreement is
satisfactory to You; (f) You have a right to revoke this Agreement for a period of seven (7) days following the Agreement’s execution by giving written notice to the Company by fax or hand delivery to the attention of the Chief Legal
Officer of Ariba; and (g) neither the Company, nor any of its agents, representatives or attorneys have made any representations to You concerning the terms or effects of this Agreement other than those contained herein. 
  
 IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties
have executed the foregoing Release Agreement this 30th day of September, 2005. 
  

									
	ARIBA, INC. (ARIBA)	 	 	 	DAVID MCCORMICK (YOU)
				
	By:	 	

	 	 	 	/s/    DAVID
MCCORMICK        
	 	 	 	 	 	 

  

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 EXHIBIT A 

 Non-Competition and Confidentiality Agreement 
  
 This Agreement is made by and between FreeMarkets, Inc. (the
“Company”) and the undersigned employee (“Employee”), as of the date last signed. 
  
 WHEREAS, the Company is engaged in the highly competitive business of developing software for and arranging and conducting electronic auctions throughout
the United States and the rest of the world. 
  
 WHEREAS, the
parties hereto recognize and acknowledge that in the course of Employee’s employment with Company, Employee will acquire or develop certain Confidential Information. For purposes of this Agreement, “Confidential Information” means all
confidential or proprietary information, whether written (in any tangible medium including in electronic format) or oral, which is connected with the Company’s business, including but not limited to, (1) knowledge, data, property or other
matters of a business or technical nature (such as trade secrets, processes, formulas, program documentation, algorithms, source codes, object codes, inventions, techniques, financial and sales data, all plans or strategies for marketing, developing
and pricing, contracts, the persons with which such contracts are entered into, and all information concerning clients or customers of the Company, potential clients and or customers of the Company and suppliers or manufacturers); (2) plans for
further development; and/or (3) all other information not generally available to the public. Notwithstanding the above, the Employee’s obligation under this Agreement shall not include information which generally becomes public knowledge
without any action by the Employee or without Employee’s involvement. 
  
 WHEREAS, the parties hereto recognize, and do hereby acknowledge, that the maintenance of secrecy and privacy of Confidential Information is absolutely essential, and are of the utmost importance to the business
affairs, value, effectiveness and continuing viable business status of the Company, which the parties recognize as a legal property right of the Company. 
  
 NOW THEREFORE, in consideration of the Company agreeing to employ Employee and for other good and valuable consideration, the receipt and adequacy of
which the Company and Employee acknowledge, the parties agree as follows: 
  
 1. Non-Disclosure of Confidential Information. 
  
 (a) Non-Disclosure. Employee agrees that Employee will not, whether within the Company’s organization or otherwise, without
the prior written approval of the Company: (i) communicate, publish or disseminate any Confidential Information to any person or entity, except as may be necessary for the performance of Employee’s duties as an employee of the Company; or
(ii) use the Confidential Information for Employee’s own account. 
  
 (b) Third-Party Confidential Information. Employee agrees to hold all third-party confidential or proprietary information received for or on behalf of the Company in the strictest confidence and do all things
necessary for the Company to comply with the provisions of all contracts to which the Company is a party. The Employee agrees not to disclose to the Company, use in the Company’s business, or cause the Company to use, any information or
material which is confidential to others and which the Company has not been authorized to use. Specifically, the Employee certifies that the Employee has not and will not disclose to the Company any confidential or proprietary information belonging
to the Employee’s prior employers. 

 (c) Policies. Employee agrees to abide by policies and rules established from time
to time by the Company for the protection of its Confidential Information. 
  
 2. Covenant Not to Compete. 
  
 In recognition of the special relationship between the parties and the Confidential Information to which Employee will have access, Employee agrees that he will not, without approval in writing by the Company, directly or indirectly, as
owner, principal, agent, director, officer, representative, employee, partner, participant, or any other capacity whatsoever, during his employment with the Company and for a period of two years after termination of Employee’s employment with
the Company: 
  
 (a) work for or offer consulting
services to any person or entity engaged in or planning to engage in a business in competition with the Company’s business, or otherwise directly or indirectly compete with the Company; 
  
 (b) solicit or entice, or attempt to solicit or entice, any
clients or customers of the Company or potential clients or customers of the Company to divert their business or services from the Company; or 
  
 (c) solicit or entice, or attempt to solicit or entice, any employees of the Company to leave the employ of the Company. 
  
 For the purposes of this covenant, the term “clients or customers”
shall include all persons or entities with whom the Company conducted business at any time within the 18 months prior to termination of employment, or within six months after termination of employment. The term “potential clients or
customers” shall include all persons or entities with whom the Company has had contact for the purpose of soliciting business within the six months prior to the termination of employment. The term “business in competition” means any
business or enterprise which develops or markets products or services similar to the Company’s. The parties agree that the restrictions contained in this paragraph are reasonable and necessary to protect the legitimate interests of the Company,
and that such restrictions will not constitute an undue hardship on Employee. 
  
 3. Assignment of Inventions and Original Works. 
  
 (a) Assignment; Works Made for Hire. The Employee hereby assigns, and agrees to assign, to the Company or to any party designated
by the Company, the Employee’s entire right, title and interest to all Developments made, conceived or first reduced to practice solely or jointly by Employee, whether or not such Developments are patentable, copyrightable or developed during
normal working hours, which: (i) were made, conceived or first reduced to practice in the course of performance of Employee’s employment duties, or with the use of the Company’s time, materials, funds or facilities; or (ii) are
related to information, technology or investigations of the Company to which the Employee has access as part of work for the Company. The Employee acknowledges that all original works of authorship which are made by Employee within the scope of
Employee’s employment and which are protectable by copyright are “works made for hire,” within the meaning of 17 U.S.C. §101. 
  
 (b) Retained Inventions. Attached to this Agreement as Exhibit A is a list of all Developments not assigned by Section 3(a) in
which the Employee has any right, title or interest and which were written, made or conceived solely or jointly by the Employee prior to Employee’s employment with the Company. 
  

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 (c) Prompt Disclosure; Duty of Assistance. In connection with any of the
Developments assigned by Section 3(a), the Employee will (i) promptly disclose them to the Company and (ii) on the request of the Company, promptly execute an assignment to the Company and do anything else necessary to enable the
Company to secure a patent, copyright or other form of protection for such Developments. The Employee waives and releases, to the extent permitted by law, all rights to the Developments assigned to the Company. 
  
 (d) Power of Attorney. Employee hereby irrevocably
designates and appoints the Company and its duly authorized officers and agents, as Employee’s agents and attorneys-in-fact to act for and in Employee’s behalf and instead of Employee, to execute and file any documents and to do all other
lawfully permitted acts to further the above purposes with the same legal force and effect as if executed by Employee. 
  
 (e) Developments. For purposes of this Agreement, “Developments” mean any idea, invention, improvement, design of a
useful article (whether the design is ornamental or otherwise), computer program (including source and object code), data base, documentation and original works of authorship. 
  
 4. Employee acknowledges that the Non-Disclosure of Confidential Information, Covenant Not to Compete and Assignment of
Inventions and Original Works provisions above are reasonable and necessary to protect the legitimate interests of the Company, and that a violation of any of those provisions will cause irreparable harm to the Company, which will not be remediable
by monetary damages. Consequently, in the event Employee violates any of these restrictions, the Company will be entitled to temporary and permanent injunctive relief against Employee. This section shall not limit any other legal or equitable
remedies that the Company may have against Employee for violations of these restrictions, including the right to obtain damages upon proof of same. Employee agrees that if the Company prevails in any legal proceeding or action to enforce this
Agreement, including proceedings for equitable relief, Employee shall be liable for all of the Company’s attorneys’ fees and costs in connection with such legal proceeding or action. Employee represents that Employee’s experience and
capabilities are such that the non-competition provision contained herein will not prevent Employee from obtaining employment or otherwise earning a living at the same general level of economic benefit an Employee earned with the Company. Any claims
asserted by Employee against the Company shall not constitute a defense in any injunction action by the Company to obtain specific enforcement of this Agreement. 
  
 5. Employee represents that he/she is not subject or a party to any employment agreement, non-competition covenant,
non-disclosure agreement, or other agreement, covenant, understanding or restriction that would prohibit Employee from executing this Agreement, and from performing fully, and without limitation, Employee’s duties and responsibilities
hereunder. 
  
 6. Each of the foregoing covenants shall be
construed as independent of any other covenant or provision of this Agreement. If all or any portion of a covenant is held unreasonable or unenforceable by law, Employee expressly agrees to be bound by any lesser covenant subsumed within the terms
of such covenant that imposes the maximum duty permitted by law, as if the resulting covenant were separately stated in and made a part of this Agreement. 
  
 7. Notwithstanding termination of employment by either party for any reason whatsoever, Employee shall nonetheless be bound by all of the provisions of
this Agreement. 
  

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 8. Upon termination of employment with the Company, and regardless of the reason for such termination,
Employee will leave with, or promptly return to, the Company all documents, records, notebooks, magnetic tapes, disks or other materials, including all copies, in his or her possession or control which contain Confidential Information of the
Company, whether prepared by the Employee or others. 
  
 9. The
rights and protections of the Company hereunder shall extend to any successors or assigns of the Company and to the Company’s present or future parents, subsidiaries, divisions and affiliates. This Agreement may be assigned by the Company
without the Employee’s consent. 
  
 10. This Agreement may
not be modified or amended except by a writing executed by the Employee and the President and Chief Executive Officer of the Company. Nothing in this Agreement shall be construed as giving the Employee the right to be retained in the employ of the
Company or as altering the Employee’s status as an employee-at-will. Employee’s employment may be terminated by either the Company or Employee at any time and for any reason not contrary to law, with or without cause. 
  
 11. This Agreement shall be governed by and interpreted under the laws of the
Commonwealth of Pennsylvania without giving effect to any conflict of laws principles. Any action relating to this Agreement or Employee’s employment by the Company shall be brought exclusively in the state or federal courts of the Commonwealth
of Pennsylvania. 
  
 12. This Agreement sets forth the entire
agreement and understanding between the Employee and the Company with respect to the subject matter of this Agreement and replaces all previous agreements or understandings, inducements or conditions, express or implied, written or oral, between the
Employee and the Company. 
  
 IN WITNESS WHEREOF, the Company and
Employee have entered into this Agreement as of the last date set forth below. 
  

									
	 FREEMARKETS, INC.
	 	 	 	 EMPLOYEE

				
	By:	 	/s/    JOHN P. LEVIS III        	 	 	 	 David H. McCormick

	 	 	 John P. Levis III
 Senior Vice President &
 Chief People Officer
	 	 	 	 Employee’s Name (printed)

	 	 	 	 	 	  
 /s/    DAVID H. MCCORMICK        

	 	 	 	 	 	 	 Employee’s Signature

					
	Date:	 	 February 1, 2001
	 	 	 	Date:	 	 3/25/01

  
 CAUTION TO EMPLOYEE: THIS AGREEMENT
AFFECTS IMPORTANT RIGHTS. DO NOT SIGN IT UNLESS YOU HAVE READ IT CAREFULLY AND ARE SATISFIED THAT YOU UNDERSTAND IT COMPLETELY. 
  

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 EXHIBIT A 
 TO 
 NON-COMPETITION AND CONFIDENTIALITY AGREEMENT 
  
 I represent that I have disclosed on this Exhibit all Developments, as
defined in the attached Non-Competition and Confidentiality Agreement, in which I have any right or interest. I agree that any present or future Development not listed in this Exhibit is subject to assignment and vesting under Paragraph 3 of the
attached Non-Competition and Confidentiality Agreement. I further agree that under no circumstances will I incorporate in any work that I perform for FreeMarkets, Inc. any of the Developments I have disclosed on this Exhibit without prior written
consent of FreeMarkets, Inc. 
  

					
	Brief Description of Development	 	 	 	Right, Title or Interest and Date Acquired
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 

					
			
	                                       
                                        
                                    
	 	 	 	 
	 (Employee signature)Employment Agreement between the Registrant and Kent Parker

 Exhibit 10.40 
  
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT is entered into as of January 23, 2004, by and between
KENT L. PARKER (the “Employee”) and ARIBA, INC., a Delaware corporation (the “Company”). 
  

	 	1.	DUTIES AND SCOPE OF EMPLOYMENT. 

  
 (a) Position. For the term of his employment under this Agreement
(the “Employment”), the Company agrees to employ the Employee in the position of Senior Vice President of Global Sourcing Service at the Company’s Pittsburgh, Pennsylvania, work location. The Employee shall report to a position
(including, without limitation, an Executive Vice President or the President) that, in turn, reports to the Chief Executive Officer of the Company. The Employee’s job responsibilities shall be those duties and responsibilities that the Employee
maintained immediately prior to the Effective Time and such other additional duties and responsibilities as the Company may reasonably assign to the Employee that are commensurate with the Employee’s title and position with the Company. The
Company agrees that the Employee may continue his current working and commuting arrangement, whereby the Employee lives in the state of Indiana and (i) commutes to the Company’s Pittsburgh, Pennsylvania, work location on a weekly basis for
a portion of the workweek (staying in an apartment in Pittsburgh) and (ii) telecommutes from his home in the state of Indiana for the other portion of the workweek. The Company agrees to continue bearing the reasonable expenses relating to the
Employee’s working and commuting relationship, as described in Section 4 below. 
  
 (b) Obligations to the Company. During his Employment, the Employee shall devote his full business efforts and time to the Company. During his Employment, without the prior written approval of the Company, the
Employee shall not render services in any capacity to any other person or entity and shall not act as a sole proprietor or partner of any other person or entity or as a shareholder owning more than five percent of the stock of any other corporation.
The Employee shall comply with the Company’s policies and rules, as they may be in effect from time to time during his Employment. Notwithstanding the foregoing, nothing herein shall preclude the Employee from (i) serving on the boards of
directors of a reasonable number of trade associations and/or charitable organizations, (ii) engaging in charitable activities and community affairs and (iii) managing his personal investments and affairs, provided, that such activities do
not materially interfere with the proper performance of his duties and responsibilities as set forth in Subsection (a) above. 
  
 (c) Effective Date. This Agreement shall become effective immediately after the “Effective Time” (as that term is defined in the
Agreement and Plan of Merger and Reorganization among the Company, Fleet Merger Corporation and FreeMarkets, Inc. (“FreeMarkets”) dated as of January 23, 2004 (the “Merger Agreement”)). This Agreement shall have no legal
effect unless the merger among the Company, Fleet Merger Corporation and FreeMarkets, as contemplated by the Merger Agreement, is consummated. 
  

	*	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. 

	 	2.	CASH AND INCENTIVE COMPENSATION. 

  
 (a) Salary. The Company shall pay the Employee as compensation for his services a base salary at a gross annual rate
of not less than $300,000. Such salary shall be payable in accordance with the Company’s standard payroll procedures. (The annual compensation specified in this Subsection (a), together with any increases in such compensation that the
Company may grant from time to time, is referred to in this Agreement as the “Base Salary.”) 
  
 (b) Incentive Bonuses. The Employee shall be eligible to be considered for an annual incentive bonus with a target amount equal to $150,000. For
the fiscal year ending September 30, 2004, the Employee shall receive a guaranteed bonus in an amount equal to 50% of the annual target bonus multiplied by a ratio, the numerator of which shall be the number of days of Employment completed by
the Employee between the Effective Time and September 30, 2004, and the denominator of which shall be 365. The bonus shall be paid in quarterly installments to the extent provided by the Company’s generally applicable bonus payment
procedures for similarly situated employees. The bonus shall be awarded based on the criteria established by the Company and communicated to the Employee during the first quarter of the applicable fiscal year (or, for the 2004 fiscal year, as soon
as administratively practicable following the Employee’s commencement of Employment). Except as otherwise provided in the Agreement, the Employee shall not be entitled to an incentive bonus if he is not employed by the Company on the quarterly
payment date or other date when such bonus is otherwise payable in accordance with the Company’s generally applicable bonus payment procedures for similarly situated employees. 
  
 (c) Stock Options. The Company shall grant the Employee an option to purchase 400,000 shares of the Company’s
Common Stock (the “Option”).1 The Option shall be granted as soon as reasonably practicable after the
Effective Time, but not later than 10 business days after the Effective Time. The exercise price for each share of the Company’s Common Stock subject to the Option shall be the closing price as reported on The Nasdaq Stock Market (or its
successor) on the date of grant. The term of the Option shall be 10 years, subject to earlier expiration in the event of the termination of the Employee’s Employment. The Option shall become exercisable with respect to 25% of the shares of the
Company’s Common Stock when the Employee completes 12 months of Employment with the Company after the Effective Time and with respect to the remaining shares of the Company’s Common Stock subject to the Option in equal monthly installments
over the next three years of Employment. The grant of the Option shall be subject to the other terms and conditions set forth in the Ariba, Inc. 1999 Equity Incentive Plan, as amended, and in the Company’s standard Stock Option Agreement, as
attached hereto as Exhibit A and as revised to conform to the terms of this Agreement. 

	1	This number will be adjusted appropriately in the event that a reverse split of the
Company’s Common Stock is effected in connection with the Merger. 

  

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	 	3.	VACATION AND EMPLOYEE BENEFITS. 

  
 During his Employment, the Employee shall be eligible for paid vacations in accordance with the Company’s vacation
policy for similarly situated employees, as it may be amended from time to time. During his Employment, the Employee shall be eligible to participate in the retirement, medical, dental, vision, life insurance, disability, tuition assistance and
other benefit and fringe benefit plans (collectively, the “Employee Benefit Plans”) maintained by the Company or FreeMarkets for similarly situated employees, subject in each case to the generally applicable terms and conditions of the
plan in question and to the determinations of any person or committee administering such Employee Benefit Plan. 
  

	 	4.	BUSINESS EXPENSES. 

  
 During his Employment, the Employee shall be authorized to incur necessary and reasonable travel, entertainment and other business expenses in connection
with his duties hereunder. The Company shall reimburse the Employee for such expenses upon presentation of an itemized account and appropriate supporting documentation, all in accordance with the Company’s generally applicable policies for
similarly situated employees. In addition, the Company agrees to reimburse all reasonable expenses incurred by the Employee in connection with his working and commuting arrangement as described in Section 1 (including, without limitation, all
travel-related expenses incurred by the Employee in traveling from his home in the state of Indiana to the Company’s Pittsburgh, Pennsylvania, work location and all expenses related to maintaining an apartment in Pittsburgh, Pennsylvania, that
is located within a reasonable proximity of the Company’s primary work location in Pittsburgh, Pennsylvania). To the extent that any such expense reimbursement is determined to be taxable to the Employee for state, federal or local income or
employment tax purposes and the corresponding expense item is not deductible to the Employee (each, a “Taxable Reimbursement”), the Company shall pay the Employee a bonus in an amount calculated to equal (net of any taxes payable with
respect to such bonus) the amount of tax payable with respect to the Taxable Reimbursement (assuming in each case the Employee’s actual tax bracket for all such purposes). The intention of the preceding sentence is to provide that any increase
in taxes payable by the Employee with respect to the reimbursement of the Employee’s expenses as described above be offset, on an after-tax basis, by the bonus. 
  

	 	5.	TERM OF EMPLOYMENT. 

  
 (a) Termination of Employment. The Company may terminate the Employee’s Employment at any time and for any reason (or no reason), and with or
without cause, by giving the Employee 30 days’ advance notice in writing. The Employee may terminate his Employment at any time and for any reason (or no reason) by giving the Company 30 days’ advance notice in writing. The Employee’s
Employment shall terminate automatically in the event of his death. The termination of the Employee’s Employment shall not limit or otherwise affect his obligations under Section 9. 
  
 (b) Employment at Will. The Employee’s Employment with the
Company shall be “at will.” Any contrary representations that may have been made to the Employee shall 

  

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be superseded by this Agreement. This Agreement and the Separation Plan (as defined below and as incorporated herein) shall constitute the full and complete
agreement between the Employee and the Company on the “at will” nature of the Employee’s Employment, which may only be changed in an express written agreement signed by the Employee and a duly authorized officer of the Company.

  
 (c) Rights Upon Termination. Except as expressly
provided in Sections 6, 7 and 8, upon the termination of the Employee’s Employment, the Employee shall only be entitled to the compensation, benefits and expense reimbursements that the Employee has earned under this Agreement before
the effective date of the termination. The payments under this Agreement shall fully discharge all responsibilities of the Company to the Employee. 
  

	 	6.	TERMINATION BENEFITS DURING FIRST 18 MONTHS FOLLOWING MERGER.

  
 (a) General Rule. If the Employee’s
Employment terminates for a reason described in section 4.1 of the FreeMarkets, Inc. Change of Control Separation Plan, as in effect on January 8, 2004 (the “Separation Plan”), during the 18-month period following the Effective
Time, then the Employee’s separation benefits (if any) shall be determined exclusively under the Separation Plan, except as otherwise provided in this Section 6. 
  
 (b) Exception for Subsequent Change in Control Involving the Company. Notwithstanding the general rule in
Subsection (a) above, if the Employee’s Employment terminates during the 18-month period following the Effective Time for a reason described in Section 8 in connection with a Change in Control (as defined in Section 8) involving
the Company, the Employee shall receive at his election (i) the benefits provided under this Section 6 pursuant to the provisions of the Separation Plan or (ii) the benefits provided under Section 8. 
  
 (c) Definition of “Base Pay.” The definition of
“Base Pay” in the Separation Plan shall mean the Employee’s annual base salary as of December 31, 2003. 
  
 (d) Definition of “Good Reason.” The definition of “Good Reason” in the Separation Plan shall be construed as follows:

  
 (i) Job Responsibilities. The Employee
and the Company agree that, for purposes of the Separation Plan, the Employee’s job responsibilities shall not be deemed to have been substantially diminished as a result of the Employee’s moving from his position with FreeMarkets prior to
the Effective Time into the position described in Section 1(a); provided that any change in the Employee’s job responsibilities from those described in Section 1(a) after the Effective Time that materially diminishes the
Employee’s job responsibilities from those in effect immediately prior to the Effective Time shall constitute “Good Reason” for purposes of the Separation Plan. 
  
 (ii) Travel Requirements. The Employee and the Company agree that, on and after the Effective Time,
the Employee may be subject to 

  

 4 

 
additional travel requirements and that such requirements shall be deemed to be substantially consistent with his travel obligations immediately prior to the
Effective Time. 
  
 (iii) Employee
Benefits. The Employee and the Company agree that his employee benefits shall not be deemed to have been materially reduced if he is eligible to participate in all Employee Benefit Plans offered to the similarly situated employees of the
Company. 
  
 (iv) Assumption of Separation
Plan. The Employee and the Company agree that this Agreement constitutes a satisfactory agreement by the Company to assume and agree to perform FreeMarkets’ obligations to the Employee under the Separation Plan. 
  
 (e) Accelerated Vesting of Equity. Section 4.2(d) of the
Separation Plan, relating to accelerated vesting of options and restricted stock, shall apply only to options and restricted stock held by the Employee as of the Effective Time and shall not apply to any grants made by the Company after the
Effective Time (including, without limitation, the option grant described in Section 2(c)). Notwithstanding the foregoing, in the event the Employee is terminated within the first 12 months of Employment and the Employee is otherwise eligible
for the benefits described in this Section 6 and the Separation Plan, the Employee shall be deemed to have 12 months of Employment for purposes of determining the vested portion of the Option. 
  

	 	7.	TERMINATION BENEFITS AFTER FIRST 18 MONTHS FOLLOWING MERGER
(NO ARIBA CHANGE IN CONTROL). 

  
 (a) Qualifying Terminations. This Section 7 shall only apply if: 
  
 (i) Section 8 does not apply; 
  
 (ii) The Company terminates the Employee’s Employment for a reason other than Cause or Permanent
Disability more than 18 months after the Effective Time; and 
  
 (iii) Either (A) the Employee and the Company have executed a reciprocal general release (in the form attached hereto as Exhibit B) of all known and unknown claims that they may then have against each
other and have agreed not to prosecute any legal action or other proceeding based on such claims or (B) the Company (at its sole discretion) has determined to waive the requirement of a reciprocal general release. 
  
 The foregoing notwithstanding, the Employee and the Company shall not be required to release
any claims to indemnification, advancement of expenses or repayment arising under the Company’s Amended and Restated Certificate of Incorporation or the Company’s Amended and Restated Bylaws, in each case as currently in effect or as
subsequently amended. 
  

 5 

 (b) Severance Pay. If this Section 7 applies, then the Employee shall be entitled to receive
severance payments from the Company for a period of 12 months following the termination of his Employment (the “Continuation Period”). Such severance payments shall be made in accordance with the Company’s standard payroll procedures.
The annual rate of such severance payments shall be equal to the sum of (i) the Employee’s Base Salary at the annual rate in effect when his Employment terminates plus (ii) the Employee’s annual target bonus for the fiscal year
in which his Employment terminates. In addition to any other remedies that may be available to the Company, severance payments shall cease immediately if the Employee fails to comply with the covenants set forth in Section 9. 
  
 (c) Acceleration of Vesting. If this Section 7 applies, then:

  
 (i) The vested portion of any restricted
shares of the Company’s Common Stock held by the Employee at the time of the termination of his Employment shall at all times thereafter be determined by adding 12 months to his actual period of Employment with the Company. 
  
 (ii) During the Continuation Period, the Employee shall
continue to vest in the options to purchase shares of the Company’s stock held by him at the time of the termination of his Employment, subject to his compliance with the covenants set forth in Section 9 below. The monthly rate of vesting
during the Continuation Period shall be the same as prior to the termination of the Employee’s Employment. 
  
 (d) Extension of Option Exercise Period. If this Section 7 applies, then all options to purchase shares of the Company’s stock held by
the Employee at the time of the termination of his Employment shall remain exercisable until the earlier of: 
  
 (i) The later of (A) the date 12 months after the termination of the Employee’s Employment or (B) with respect to any
increment of options that becomes exercisable later than nine months after the termination of the Employee’s Employment, the date three months after such increment becomes exercisable; or 
  
 (ii) The date the options would have expired if the
Employee’s Employment had not terminated. 
  
 (e)
Definition of “Cause.” For purposes of this Section 7 only, “Cause” shall mean: 
  
 (i) Any gross negligence or intentional misconduct that materially injures the Company and its subsidiaries, taken as a whole, or has a
material adverse effect on the business or affairs of the Company and its subsidiaries, taken as a whole; 
  
 (ii) Any unauthorized use or disclosure by the Employee of the Company’s confidential information or trade secrets resulting from
gross negligence that materially injures the Company and its subsidiaries, taken as a 

  

 6 

 
whole, or has a material adverse effect on the business or affairs of the Company and its subsidiaries, taken as a whole; 
  
 (iii) A failure by the Employee to comply with the
Company’s written policies or rules that materially injures the Company and its subsidiaries, taken as a whole, or has a material adverse affect on the business or affairs of the Company and its subsidiaries, taken as a whole, provided that the
Company shall have given the Employee notice of such failure and an opportunity to cure such failure, if curable; or 
  
 (iv) The Employee’s conviction of, or plea “guilty” or “no contest” to, a felony under the laws of the United
States or any state thereof. 
  
 With respect to acts or omissions described in
Paragraphs (i) and (iii) above, “Cause” shall only be deemed to exist following written notice to the Employee from the Company and his failure to cure such acts or omissions within 30 days of receipt of such written notice.

  
 (f) Definition of “Permanent
Disability.” For all purposes under this Agreement, “Permanent Disability” shall mean that the Employee, at the time notice is given, has failed to perform the duties of his position with the Company for a period of not
less than 180 consecutive days (or such longer period as may be required by law) as the result of his incapacity due to physical or mental injury, disability or illness. 
  

	 	8.	TERMINATION BENEFITS AFTER FIRST 18 MONTHS FOLLOWING MERGER
AND AFTER ARIBA CHANGE IN CONTROL. 

  
 (a) Qualifying Terminations. This Section 8 shall apply if: 
  
 (i) The Company terminates the Employee’s Employment with the Company for a reason other than Cause or
Permanent Disability more than 18 months after the Effective Time but within 12 months after a Change in Control; or 
  
 (ii) The Employee resigns for Good Reason more than 18 months after the Effective Time but within 12 months after a Change in Control.

  
 (b) Severance Payment. If this Section 8 applies,
then the Employee shall be entitled to receive a severance payment from the Company. The amount of such payment shall be equal to 150% of the sum of (i) the Employee’s Base Salary at the annual rate in effect when his Employment terminates
plus (ii) the Employee’s annual target bonus for the fiscal year in which his Employment terminates. Such payment shall be made in a lump sum in cash on the date the Employee’s Employment terminates under Subsection (a)(i) above
or not later than the date three business days after his Employment terminates under Subsection (a)(ii) above. 
  
 (c) Acceleration of Vesting. If this Section 8 applies, then all of the Equity held by the Employee at the time of the termination of his
Employment shall become fully and 

  

 7 

 
unconditionally vested, fully exercisable and fully transferable (except for transfer restrictions imposed by law). For this purpose, the Employee’s
“Equity” shall consist of (i) all shares of the capital stock of the Company and all shares of the Company’s Common Stock (“Stock”), (ii) all options and other rights to purchase shares of Stock, (iii) all
stock units, performance units or phantom shares whose value is measured by the value of shares of Stock and (iv) all stock appreciation rights whose value is measured by increases in the value of the shares of Stock. 
  
 (d) Extension of Option Exercise Period. If this Section 8
applies, then all options to purchase shares of the Company’s stock held by the Employee at the time of the termination of his Employment shall remain exercisable until the earlier of (i) the date 18 months after the termination of the
Employee’s Employment or (ii) the date such options would have expired if the Employee’s Employment had not terminated. 
  
 (e) Definition of “Cause.” For purposes of this Section 8 only, “Cause” shall mean any intentional misconduct that
materially injures the Company and its subsidiaries, taken as a whole, or has a material adverse effect on the business or affairs of the Company and its subsidiaries, taken as a whole. 
  
 (f) Definition of “Change in Control.” For purposes of this Section 8 only, a
“Change in Control” shall be determined as follows: 
  
 (i) The consummation of a merger or consolidation of the Company, or any subsidiary of the Company, with or into another entity or any other corporate reorganization, if immediately after such transaction the
Ownership Percentage (as defined below) of persons who were not stockholders of the Company immediately before such transaction is 30% or more; provided, however, that if such percentage is less than 50%, a majority of the Incumbent Directors may
determine prior to the consummation of such transaction that a Change of Control has not occurred after considering all relevant factors; 
  
 (ii) The sale, transfer or other disposition of all or substantially all of the Company’s assets; 
  
 (iii) A change in the composition of the Board of Directors
of the Company (the “Board”), as a result of which fewer than two-thirds of the incumbent directors are directors who either (A) had been directors of the Company on the date hereof (the “original directors”) or
(B) were elected, or nominated for election, to the Board with the approval of at least a majority of the sum of (I) the original directors who were still in office at the time of the election or nomination and (II) the directors
whose election or nomination was previously so approved (collectively, the “Incumbent Directors”); or 
  
 (iv) Any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)), directly or indirectly, of securities of the 

  

 8 

 
Company representing at least 25% of the total voting power represented by the Company’s then outstanding voting securities. 
  
 For purposes of this Subsection (f), 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 (A) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a parent or subsidiary of the Company and
(B) 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. 
  
 For purposes of Paragraph (i) above, the term “Ownership Percentage” means the percentage of the voting power of the
outstanding securities of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity. 
  
 For purposes of the proviso in Paragraph (i) above, the factors to be considered by the Board in determining that a Change in
Control has not occurred shall include, without limitation: 
  
 (A) The Ownership Percentage; 
  
 (B) Whether there is a change in the composition of the Board or the continuing or surviving entity; 
  
 (C) Whether there is a change in the management of the Company or the continuing or surviving entity; 
  
 (D) The extent of the anticipated change in the business,
operations or assets of the Company or the continuing or surviving entity; 
  
 (E) The level of severance benefits available to comparable management at any entity other than the Company resulting from any transaction specified in Paragraphs (i) through (iv) above; and 
  
 (F) Whether treating the transaction as a Change in Control
for purposes of this Agreement is necessary or desirable for purposes of achieving the business objectives of the transaction specified in Paragraphs (i) through (iv) above. 
  
 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. 
  
 (g) Definition of “Good Reason.” For purposes of this Section 8 only, “Good Reason”
shall mean (i) a requirement that the Employee report to anyone other than an Executive Vice President or a higher-level officer of the Company, (ii) a reduction in the Employee’s level of compensation (including Base Salary, fringe
benefits and participation in bonus or incentive programs) or (iii) a relocation of his place of Employment by more than 50 

  

 9 

 
miles, provided and only if such requirement, reduction or relocation is effected by the Company without his consent. 
  

	 	9.	COVENANTS. 

  
 (a) Non-Solicitation. During his Employment and, if Section 7 applies, during the Continuation Period, the Employee shall not directly or
indirectly, personally or through others, solicit or attempt to solicit the employment of any employee of the Company or any of the Company’s affiliates, whether on the Employee’s own behalf or on behalf of any other person or entity. The
term “employment” for purposes of this Subsection (a) means to enter into an arrangement for services as a full-time or part-time employee, independent contractor, agent or otherwise. The Employee and the Company agree that this
provision is reasonably enforced as to any geographic area in which the Company conducts its business. 
  
 (b) Non-Competition. The Employee agrees that, during his Employment and during the Continuation Period (if any), he shall not: 
  
 (i) Directly or indirectly, individually or in conjunction
with others, engage in activities that compete with the Company or work for any entity that is part of the Company’s Market; 
  
 (ii) Solicit, serve, contract with or otherwise engage any existing or prospective customer, client or account of the Company on behalf of
any entity that is part of the Company’s Market; or 
  
 (iii) Cause or attempt to cause any existing or prospective customer, client or account of the Company to divert from, terminate, limit or in any manner modify, or fail to enter into, any actual or potential business
relationship with the Company. The Employee and the Company agree that this provision is reasonably enforced with reference to any geographic area in which the Company maintains any such relationship. 
  
 For purposes of this Subsection (b), the Company’s “Market” shall mean
(i) all companies that derive their revenue primarily from e-procurement and/or spend management software or service sales or sales of software or services aiding companies in sourcing and/or spend management activities and (ii) those
companies set forth on Exhibit C attached hereto. The Employee and the Company agree that the Company’s Market is global in scope. 
  
 (c) Cooperation and Non-Disparagement. The Employee agrees that, during the Continuation Period, he shall cooperate with and assist the Company in
every reasonable respect in facilitating the transition of his duties to his successor; provided that the Employee shall not be required to devote more than 20 hours per month to providing such assistance and cooperation. The Employee further agrees
that, during the Continuation Period, he shall not in any way or by any means disparage the Company, the members of the Board or the Company’s officers and employees. 
  

 10 

 (d) Disclosure. The Employee agrees that, during the Continuation Period, he shall inform any new
employer or other person or entity with whom the Employee enters into a business relationship, before accepting employment or entering into a business relationship, of the existence of this Section 9. 
  
 (e) Construction. If any provision set forth in this Section 9 is
not enforceable under the laws of the state in which the Employee is employed following the termination of his Employment, nothing in this Agreement shall prohibit the Employee from engaging in such lawful conduct; provided, however, that if the
Employee elects to do so, his rights to any of the benefits set forth in Section 7 shall terminate immediately. 
  

	 	10.	PARACHUTE PAYMENTS. 

  
 (a) Application. This Section 10 shall apply only if the Employee’s Employment terminates more than 18 months after the Effective Time.

  
 (b) Parachute Gross-Up Payment. If it is determined
that any cash payment of any type to the Employee or for his benefit by the Company, any of its affiliates, any person who acquires ownership or effective control of the Company or ownership of a substantial portion of the Company’s assets
(within the meaning of section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations thereunder) or any affiliate of such person, whether paid or payable pursuant to the terms of this Agreement or
otherwise (the “Total Payments”), would be subject to the excise tax imposed by section 4999 of the Code or any interest or penalties with respect to such excise tax (such excise tax and any such interest or penalties are collectively
referred to as the “Excise Tax”), then the Employee shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount calculated to ensure that after the Employee pays all taxes (and any interest or penalties
imposed with respect to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Total Payments. For purposes of this Section 10,
the Excise Tax and any related gross-up benefits shall be determined based on cash compensation, before consideration of the taxable compensation (if any) related to restricted shares of stock or options to purchase stock and arising from this
Agreement. 
  
 (c) Determination by Accountant. All
determinations and calculations required to be made under this Section 10 shall be made by an independent accounting firm selected by the Employee from among the largest five accounting firms in the United States (the “Accounting
Firm”). The Accounting Firm shall provide its determination (the “Determination”), together with detailed supporting calculations regarding the amount of any Gross-Up Payment and any other relevant matter, to the Employee and the
Company within five business days after the Employee or the Company made a request (if the Employee reasonably believes that any of the Total Payments may be subject to the Excise Tax). If the Accounting Firm determines that no Excise Tax is payable
by the Employee, it shall furnish the Employee with a written statement that it has concluded that no Excise Tax is payable (including the reasons therefor) and that the Employee has substantial authority not to report any Excise Tax on his federal
income tax return. If a Gross-Up Payment is determined to be payable, it shall be paid to the Employee within five business days after the Determination has been delivered to him or the Company. Any 

  

 11 

 
determination by the Accounting Firm shall be binding upon the Company and the Employee, absent manifest error. 
  
 (d) Over- and Underpayments. As a result of uncertainty in the
application of section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments not made by the Company should have been made (“Underpayment”) or that Gross-Up
Payments will have been made by the Company that should not have been made (“Overpayment”). In either event, the Accounting Firm shall determine the amount of the Underpayment or Overpayment that has occurred. In the case of an
Underpayment, the Company shall promptly pay the amount of such Underpayment to the Employee or for his benefit. In the case of an Overpayment, the Employee shall, at the direction and expense of the Company, take such steps as are reasonably
necessary (including the filing of returns and claims for refund), follow reasonable instructions from, and procedures established by, the Company, and otherwise reasonably cooperate with the Company to correct such Overpayment, provided, however,
that (i) the Employee shall in no event be obligated to return to the Company an amount greater than the net after-tax portion of the Overpayment that the Employee has retained or has recovered as a refund from the applicable taxing authorities
and (ii) this provision shall be interpreted in a manner consistent with the intent of Subsection (b) above, which is to make the Employee whole, on an after-tax basis, from the application of the Excise Tax, it being understood that the
correction of an Overpayment may result in the Employee’s repaying to the Company an amount that is less than the Overpayment. 
  
 (e) Limitation on Parachute Payments. Any other provision of this Section 10 notwithstanding, if the Excise Tax could be avoided by reducing
the Total Payments by $25,000 or less, then the Total Payments shall be reduced to the extent necessary to avoid the Excise Tax and no Gross-Up Payment shall be made. If the Accounting Firm determines that the Total Payments are to be reduced under
the preceding sentence, then the Company shall promptly give the Employee notice to that effect and a copy of the detailed calculation thereof. The Employee may then elect, in his sole discretion, which and how much of the Total Payments are to be
eliminated or reduced (as long as after such election no Excise Tax shall be payable), and the Employee shall advise the Company in writing of his election within 10 days of receipt of notice. If the Employee makes no such election within such
10-day period, then the Company may elect which and how much of the Total Payments are to be eliminated or reduced (as long as after such election no Excise Tax shall be payable), and it shall notify the Employee promptly of such election.

  

	 	11.	SUCCESSORS. 

  
 (a) Company’s Successors. This Agreement shall be binding upon any successor (whether direct or indirect and whether by purchase, lease,
merger, consolidation, reorganization, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets. For all purposes under this Agreement, the term “Company” shall include any successor to the
Company’s business and/or assets that becomes bound by this Agreement. 
  

 12 

 (b) Employee’s Successors. This Agreement and all rights of the Employee hereunder shall
inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
  

	 	12.	ARBITRATION. 

  
 (a) Scope of Arbitration Requirement. The parties hereby waive their rights to a trial before a judge or jury and agree to arbitrate before a
neutral arbitrator any and all claims or disputes arising out of this Agreement and any and all claims arising from or relating to the Employee’s Employment, including (but not limited to) claims against any current or former employee, director
or agent of the Company, claims of wrongful termination, retaliation, discrimination, harassment, breach of contract, breach of the covenant of good faith and fair dealing, defamation, invasion of privacy, fraud, misrepresentation, constructive
discharge or failure to provide a leave of absence, claims regarding commissions, stock options or bonuses, infliction of emotional distress or unfair business practices, or any tort or tort-like causes of action. 
  
 (b) Exceptions. The foregoing notwithstanding, the following are the
only claims that may be resolved in any appropriate forum (including courts of law) as required by applicable laws then in effect: (i) claims concerning workers’ compensation benefits; and (ii) claims concerning unemployment
insurance. 
  
 (c) Procedure. The arbitrator’s
decision shall be written and shall include the findings of fact and law that support the decision. The arbitrator’s decision shall be final and binding on both parties, except to the extent applicable law allows for judicial review of
arbitration awards. The arbitrator may award any remedies that would otherwise be available to the parties if they were to bring the dispute in court. The arbitration shall be conducted in accordance with the National Rules for the Resolution of
Employment Disputes of the American Arbitration Association; provided, however, that the arbitrator shall allow the discovery authorized by the California Arbitration Act or the discovery that the arbitrator deems necessary for the parties to
vindicate their respective claims or defenses. The arbitration shall take place in Santa Clara County, California, or (at the Employee’s option) the county in which the Employee primarily worked with the Company at the time when the arbitrable
dispute or claim first arose. The arbitrator selected for any arbitration shall be mutually agreeable to the Company and the Employee; provided that if the Company and the Employee are unable to reach agreement on the selection of an arbitrator, the
arbitration shall be performed by a panel of three arbitrators. The panel shall consist of one arbitrator selected by the Company and a second arbitrator selected by the Employee. The selected arbitrators shall, in turn, select a third arbitrator to
complete the panel. 
  
 (d) Costs. The parties shall share
the costs of arbitration equally, except that the Company shall bear the cost of the arbitrator’s fee and any other type of expense or cost that the Employee would not be required to bear if he were to bring the dispute or claim in court. Both
the Company and the Employee shall be responsible for their own attorneys’ fees, and the arbitrator may not award attorneys’ fees unless a statute or contract at issue specifically authorizes such an award. 
  

 13 

	 	13.	MISCELLANEOUS PROVISIONS. 

  
 (a) Notice. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given
when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of the Employee, mailed notices shall be addressed to him at the home address that he most recently communicated
to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 
  
 (b) Modifications and Waivers. No provision of this Agreement shall be
modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Company (other than the Employee). No waiver by either party of any breach of, or of
compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
  
 (c) Entire Agreement. This Agreement and the Separation Plan supersede
and replace any prior agreements, representations or understandings, whether written, oral or implied, between the Employee and the Company or FreeMarkets with respect to the subject matter hereof. 
  
 (d) Withholding Taxes. All payments made under this Agreement shall be
subject to reduction to reflect taxes or other charges required to be withheld by law. 
  
 (e) Choice of Law and Severability. This Agreement is executed by the parties in the State of California and shall be interpreted in accordance with the laws of such State (except their provisions governing the
choice of law). If any provision of this Agreement becomes or is deemed invalid, illegal or unenforceable in any jurisdiction by reason of the scope, extent or duration of its coverage, then such provision shall be deemed amended to the extent
necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially altering the intention of the parties, then such provision shall be stricken and the remainder of this Agreement
shall continue in full force and effect. Should there ever occur any conflict between any provision contained in this Agreement and any present or future statute, law, ordinance or regulation contrary to which the parties have no legal right to
contract, then the latter shall prevail, but the provision of this Agreement affected thereby shall be curtailed and limited only to the extent necessary to bring it into compliance with applicable law. All the other terms and provisions of this
Agreement shall continue in full force and effect without impairment or limitation. 
  
 (f) No Assignment. Except as otherwise provided in Section 11(b), this Agreement and all rights and obligations of the Employee hereunder are personal to the Employee and may not be transferred or assigned
by the Employee at any time. The Company may assign its rights under this Agreement to any entity that assumes the Company’s obligations hereunder in connection with any sale or transfer of all or a substantial portion of the Company’s
assets to such entity. 
  

 14 

 (g) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument. 
  

 15 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by
its duly authorized officer, as of the day and year first above written. 
  

			
	
	/s/    KENT L.
PARKER        
	Kent L. Parker
	
	 ARIBA, INC.

		
	 By
	 	/s/    DAVID MIDDLER        
	 Title:
	 	David Middler, General Counsel

  
 Signature page of
Employment Agreement with Kent L. Parker 

 EXHIBIT A 
 STANDARD STOCK OPTION AGREEMENT 

 EXHIBIT B 
 FORM OF RELEASE 
  
 ARIBA, INC. 
  
                      , 20     
  
 Mr. Kent L. Parker 
  
 Dear Joe: 
  
 This letter (the “Agreement”) confirms the agreement between you and Ariba, Inc. (the “Company”) regarding the termination of your employment with the Company. 
  
 1. Termination Date. Your employment with the Company will terminate
on                      , 20     (the “Termination Date”). 
  
 2. Effective Date and Rescission. You have up to 21 days after you
received this Agreement to review it. You are advised to consult an attorney of your own choosing (at your own expense) before signing this Agreement. Furthermore, you have up to seven days after you signed this Agreement to revoke it. If you wish
to revoke this Agreement after signing it, you may do so by delivering a letter of revocation to me. If you do not revoke this Agreement, the eighth day after the date you signed it will be the “Effective Date.” Because of the seven-day
revocation period, no part of this Agreement will become effective or enforceable until the Effective Date.2

  
 3. Salary and Vacation Pay. On the Termination Date,
the Company will pay you $             (less all applicable withholding taxes and other deductions). This amount represents all of your salary earned through the Termination Date and
all of your accrued but unused vacation time or FTO. You acknowledge that, if you did not execute this Agreement, you would not be entitled to receive any additional money from the Company. The only payments and benefits that you are entitled to
receive from the Company in the future are those specified in this Agreement. 
  
 4. Severance Benefits. In consideration of executing this Agreement, you will receive from the Company the severance benefits described in Section 7 of the Employment Agreement dated January 23, 2004,
between you and the Company (the “Employment Agreement”). As described in Section 7 of the Employment Agreement, the continuation of such severance benefits is subject to your compliance with the covenants described in Section 9
of the Employment Agreement. 

	2	If the employee has not attained age 40 on the Termination Date, the review period will be seven days and no seven-day revocation period will be offered.

 5. Release of Your Claims. In consideration of receiving the severance benefits described in
Section 7 of the Employment Agreement, you waive, 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, stockholders,
directors, officers, employees, consultants, attorneys, agents, assigns and employee benefit plans with respect to any matter, including (without limitation) any matter related to your employment with the Company or the termination of that
employment, including (without limitation) claims to attorneys’ fees or costs, claims of wrongful discharge, constructive discharge, emotional distress, defamation, invasion of privacy, fraud, breach of contract or breach of the covenant of
good faith and fair dealing and any claims of discrimination or harassment based on sex, age, race, national origin, disability or any other basis under Title VII of the Civil Rights Act of 1964, the California Fair Employment and Housing Act,
the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act and all other laws and regulations relating to employment. However, this release bars only those claims that arose prior to the execution of this Agreement.
Execution of this Agreement does not bar: 
  
 (a)
Any claim that arises hereafter, including (without limitation) a claim for breach of this Agreement; or 
  
 (b) Any claim to indemnification or advancement of expenses arising under the Company’s Amended and Restated Certificate of
Incorporation, as amended (the “Certificate”), or the Company’s Amended and Restated Bylaws, as amended (the “Bylaws”). 
  
 6. Release of the Company’s Claims. The Company waives, releases and promises never to assert any claims or causes of action, whether or not
now known, against you or your successors, agents or assigns with respect to any matter, including (without limitation) any matter related to your employment with the Company or the termination of that employment, including (without limitation)
claims to attorneys’ fees or costs and claims of defamation, fraud, breach of contract or breach of the covenant of good faith and fair dealing. However, this release bars only those claims that arose prior to the execution of this Agreement.
Execution of this Agreement does not bar: 
  
 (a)
Any claim that arises hereafter, including (without limitation) a claim for breach of this Agreement; or 
  
 (b) Any claim to repayment arising under the Certificate or the Bylaws. 
  
 7. Waiver. You and the Company expressly waive and release any and all rights and benefits under Section 1542 of
the California Civil Code (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.” 
  
 8. Promise Not To
Sue. You agree that you will never, individually or with any other person, commence, aid in any way (except as required by legal process) or prosecute, or cause or permit to be commenced or prosecuted, any action or other proceeding based on any
claim that has been released pursuant to Section 5 above. The Company agrees that it will never, individually or with any other person, commence, aid in any way (except as required by legal process) or prosecute, or cause or permit to be
commenced or prosecuted, any action or other proceeding based on any claim that has been released pursuant to Section 6 above. 
  
 9. No Admission. Nothing contained in this Agreement will constitute or be treated as an admission by you or the Company of liability, any
wrongdoing or any violation of law. 
  
 10. Proprietary
Information and Inventions Agreement. At all times in the future, you will remain bound by your Proprietary Information and Inventions Agreement with the Company and by any similar agreement with a predecessor of the Company. 
  
 11. Modifications. This Agreement may be modified only in a written
document signed by you and a duly authorized officer of the Company. 
  
 12. Company Property. You represent that you have returned to the Company all property that belongs to the Company, including (without limitation) copies of documents that belong to the Company and files stored on your computer(s)
that contain information belonging to the Company. 
  
 13.
Severability. If any term of this Agreement is held to be invalid, void or unenforceable, the remainder of this Agreement will remain in full force and effect and will in no way be affected, and the parties will use their best efforts to find
an alternate way to achieve the same result. 
  
 14. Choice of
Law. This Agreement will be construed and interpreted in accordance with the laws of the State of California (other than their choice-of-law provisions). 
  
 15. Execution. This Agreement may be executed in counterparts, each of which will be considered an original, but all of which together will
constitute one agreement. Execution of a facsimile copy will have the same force and effect as execution of an original, and a facsimile signature will be deemed an original and valid signature. 

 Please indicate your agreement with the above terms by signing below. 
  

			
	 Very truly yours,

	
	 ARIBA, INC.

		
	By:	 	 
		
	Title: 	 	 

  
 I agree to the terms of this
Agreement, and I am voluntarily signing this release of all claims. I acknowledge that I have read and understand this Agreement, and I understand that I cannot pursue any of the claims and rights that I have waived in this Agreement at any time in
the future. 
  

			
	
	 
	Signature of Kent L. Parker
		
	 Dated: 
	 	 

 EXHIBIT C 
  

	[*]	

  

	†	The Employee may work for the company as long as the Employee does not work in an area at the company, or participate in any work in an area at the company, that is related to
e-procurement and/or spend management software or service sales or sales of software or services aiding companies in sourcing and/or spend management activities. 

  

	*	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.

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