Document:

First Amended and Restated Shareholders Agreement

 Exhibit 4.4 
  

FIRST AMENDED AND RESTATED SHAREHOLDERS AGREEMENT 
  
 BY AND AMONG 
  
 SOFTBANK CORP. 
  
 SOFTBANK EC HOLDINGS CORP. 
  
 ARIBA, INC. 
  
 AND 
  
 NIHON ARIBA K.K. 
  
 DECEMBER 10, 2001 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page No.

			
	1	  	Definitions	  	1
			
	2	  	The Company	  	5
			
	3	  	Operation of the Company	  	5
			
	4	  	Board	  	5
			
	5	  	Representative Director; Key Officers	  	6
			
	6	  	Statutory Auditors	  	7
			
	7	  	Shareholders’ Meetings	  	7
			
	8	  	Financial Statements and Accounting Records	  	7
			
	9	  	Right Of Inspection	  	7
			
	10	  	Softbank Rights	  	8
			
	11	  	Company Interests	  	8
			
	12	  	Annual Business Plan	  	8
			
	13	  	Transfer Restrictions	  	9
			
	14	  	“Market Stand-Off” Agreement	  	10
			
	15	  	Exclusivity	  	10
			
	16	  	Co–Sale Rights	  	12
			
	17	  	Additional Capital	  	12
			
	18	  	Right of First Offer	  	12
			
	19	  	IPO Commitment	  	14
			
	20	  	Certain Breaches.	  	14
			
	21	  	Modification of Transaction Agreements.	  	15
			
	22	  	Representations and Warranties of SOFTBANK and SOFTBANK Parent	  	16
			
	23	  	Representations and Warranties of Ariba	  	17

  

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	 	  	 	  	Page No.

			
	24	  	Effectiveness, Term and Termination	  	18
	 	  	24.1     Term	  	18
			
	 	  	 24.2    Termination
	  	18
			
	 	  	 24.3    Continuing Liability
	  	19
			
	25	  	Incidental and Consequential Damages	  	19
			
	26	  	Miscellaneous	  	19
			
	 	  	 26.1    Governing Law; Dispute Resolution
	  	19
			
	 	  	 26.2    Notices and Other Communications
	  	20
			
	 	  	 26.3    Language
	  	22
			
	 	  	 26.4    Severability
	  	22
			
	 	  	 26.5    References; Subject Headings
	  	22
			
	 	  	 26.6    Further Assurances
	  	22
			
	 	  	 26.7    Expenses
	  	22
			
	 	  	 26.8    No Waiver
	  	22
			
	 	  	 26.9    Entire Agreement; Amendments
	  	23
			
	 	  	 26.10  Assignment
	  	23
			
	 	  	 26.11  No Agency
	  	23
			
	 	  	 26.12  No Beneficiaries
	  	23
			
	 	  	 26.13  Counterparts
	  	23

  

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 This First Amended and Restated Shareholders Agreement (this “Agreement”) is made as of
December 10, 2001 (the “Amendment Date”), by and among Nihon Ariba K.K., a Japanese corporation (the “Company”), Ariba, Inc., a Delaware corporation (“Ariba”), SOFTBANK Corp., a Japanese corporation
(“SOFTBANK Parent”), and SOFTBANK EC Holdings Corp., a Japanese corporation previously known as SOFTBANK E-Commerce Corp. and a direct wholly owned subsidiary of SOFTBANK Parent (“SOFTBANK”). The Company, Ariba,
SOFTBANK Parent and SOFTBANK are hereunder also referred to collectively as the “Parties” and individually as a “Party”. This Agreement supercedes and replaces the SHAREHOLDERS AGREEMENT between the Parties dated as
of October 19, 2000 (the “Prior Agreement”), which the Parties hereby agree is amended and restated in its entirety by this Agreement as of the Amendment Date. 
  
 RECITALS 
  
 WHEREAS, concurrently herewith, the Parties are amending and/or entering into other agreements relating to the business and affairs of the Company; and

  
 WHEREAS, the Parties desire to amend and restate the Prior
Agreement as provided herein and to accept the rights and obligations created pursuant hereto in lieu of the rights and obligations accepted by them under the Prior Agreement. 
  
 NOW THEREFORE, for valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby
agree as follows: 
  
 AGREEMENT 
  

	 	1.	Definitions. 

  

	 	1.1	“80% Subsidiary” shall mean a Person, of which securities representing at least eighty percent (80%) of the ordinary voting power is or, in the case of a
partnership, at least eighty percent (80%) of the general partnership interests are, directly or indirectly owned, controlled or held by the Party on such date. 

  

	 	1.2	“80% Parent” shall mean a Person that directly or indirectly owns, controls, or holds securities representing at least eighty percent (80%) of the ordinary voting
power or, in the case of a partnership, at least eighty percent (80%) of the general partnership interests of the Party on such date. 

  

	 	1.3	“Affiliate” of a Person means any Person that is controlled by, controls, or is under common control with the first Person, in each case for so long as such control
continues; provided, however, that Affiliates of any Person shall include Persons in which the first Person owns, directly or indirectly, shares representing at least fifty percent (50%) of the voting power represented by such
Affiliates’ outstanding shares, regardless of whether such control actually exists. For purposes of this definition, “control” shall mean the possession, directly or indirectly, of power to direct or cause the direction of
management or policies of a 

  

 Person (whether through ownership of securities or other ownership interests, by contract or otherwise). 
  

	 	1.4	“Annual Business Plan” means the Company’s annual business plan, as approved by the Board each year for the Company’s next succeeding year including,
among other things, (i) a budget for the upcoming fiscal year for anticipated revenues and expenses of the Company, (ii) an expenditure budget, (iii) a cash-flow forecast and (iv) the Performance Criteria. 

  

	 	1.5	“Ariba” is defined in the preambles of this Agreement. 

  

	 	1.6	“Ariba Company Interest” means the Company Interest of Ariba. 

  

	 	1.7	“Ariba Investor” means Ariba and each Person that is an Affiliate of Ariba to whom Securities owned by Ariba at the close of business on the Effective Date and
subsequently acquired by Ariba pursuant to Section 11 or 18 of this Agreement have been Transferred pursuant to this Agreement. 

  

	 	1.8	“Ariba Non-Disclosure Agreement” means the Non-Disclosure Agreement by and between Ariba, SOFTBANK Parent and SOFTBANK dated October 19, 2000.

  

	 	1.9	“Articles” means the articles of incorporation of the Company in the form of attached Exhibit 2.1 to the Stock Purchase Agreement, as the same may be amended
from time to time in accordance with this Agreement and the Commercial Code. 

  

	 	1.10	“Board” means the board of directors of the Company. 

  

	 	1.11	“Business” generally means (i) the offer and sale in Japan of Ariba’s business-to-business e-commerce products and services and, in Ariba’s sole
discretion, may include localized versions of such products and services (“Localized Products”) to Persons whose principal place of business is located in Japan, (ii) the offer and sale outside Japan of Localized Products (if any)
to Affiliates of Persons whose principal place of business is in Japan and (iii) any business ancillary thereto. 

  

	 	1.12	“Business Day” means a day on which commercial banks in the United States and Japan are generally open to conduct their regular banking business.

  

	 	1.13	“Company” is defined in the preambles of this Agreement. 

  

	 	1.14	“Chief Executive Officer” means the Chief Executive Officer of the Company. 

  

	 	1.15	“Co-Sale Shareholder” is defined in Section 16(a). 

  

	 	1.16	“Commercial Code” means the Commercial Code of Japan, as amended and in effect from time to time. 

  

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	 	1.17	“Committee” is defined in Section 19(b). 

  

	 	1.18	“Common Stock” means common stock of the Company as authorized by the Articles. 

  

	 	1.19	“Company Interest” shall mean, for a Party, the percentage interest represented by the number of Securities then held by such Party (assuming that such Party has
not Transferred any Securities) divided by the number of then outstanding Fully Diluted Securities. 

  

	 	1.20	“Control Shift” is defined in Section 21(a). 

  

	 	1.21	“Director” means a member of the Board. 

  

	 	1.22	“Effective Date” means the Closing Date (as defined in the Stock Purchase Agreement). 

  

	 	1.23	“Fully Diluted Securities” means the number of Securities outstanding on a fully diluted basis after (i) giving effect to the exchange, exercise and conversion of
all outstanding exchangeable, exercisable and convertible Securities and (ii) including all shares of Common Stock reserved and available for the grant of options and or stock purchase rights to employees, officers, directors and consultants of the
Company that are not subject to outstanding options. 

  

	 	1.24	“Investor” means each Ariba Investor and each Softbank Investor. 

  

	 	1.25	“IPO” is defined in Section 19(a). 

  

	 	1.26	“Key Officers” means those Company officers who are in management positions reporting directly to the Chief Executive Officer. 

  

	 	1.27	“Listed Competitor” is defined in Section 15(a). 

  

	 	1.28	“Litigation Committee” is defined in Section 20. 

  

	 	1.29	“Meeting Notice” is defined in Section 4(c). 

  

	 	1.30	“Modification Event” means the occurrence of the written notice by Ariba to SOFTBANK pursuant to Section 21(b), except as otherwise provided in Section 21(b).

  

	 	1.31	“Notice” is defined in Section 18(b). 

  

	 	1.32	“Offered Co-Sale Securities” is defined in Section 16(a). 

  

	 	1.33	“Offered Securities” is defined in Section 18(b). 

  

	 	1.34	“Party” and “Parties” are defined in the preamble of this Agreement. 

  

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	 	1.35	“Percentage Interest” is defined in Section 15(b). 

  

	 	1.36	“Performance Criteria” is defined in Section 21(d). 

  

	 	1.37	“Person” means a natural individual, partnership, firm, corporation, or other entity or form of business association. 

  

	 	1.38	“Related Party Transaction” is defined in Exhibit 4(d). 

  

	 	1.39	“Release” means the Release, Reimbursement and Payment Agreement dated as of the Amendment Date among the Parties. 

  

	 	1.40	“Representative Director” means a representative director of the Company with the powers and duties specified for a representative director of a corporation in the
Commercial Code or the Articles. 

  

	 	1.41	“Schedule” is defined in Section 15(a). 

  

	 	1.42	“Securities” means all outstanding shares of Common Stock and any other equity securities of the Company or instruments exercisable or exchangeable for or
convertible into Common Stock or other equity securities of the Company. 

  

	 	1.43	“SOFTBANK” is defined in the preambles of this Agreement. 

  

	 	1.44	“Softbank Company Interest” means the sum of the Company Interests of SOFTBANK and SOFTBANK Parent. 

  

	 	1.45	“Softbank Investor” means SOFTBANK, SOFTBANK Parent and each Person that is an Affiliate of SOFTBANK Parent to whom Securities acquired by SOFTBANK and SOFTBANK
Parent on the Effective Date pursuant to the Stock Purchase Agreement and subsequently acquired by SOFTBANK and SOFTBANK Parent pursuant to Section 11 or 18 of this Agreement have been Transferred pursuant to this Agreement.

  

	 	1.46	“SOFTBANK Parent” is defined in the preambles of this Agreement. 

  

	 	1.47	“Special Exceptions Law” means the law pertaining to special exceptions to the Commercial Code concerning auditors of companies (Kabushiki Kaisha).

  

	 	1.48	“Statutory Auditor” means a statutory auditor (Kansa-yaku) of the Company with powers and duties as specified in the Commercial Code. 

  

	 	1.49	“Stock Purchase Agreement” means the Stock Purchase Agreement dated as of October 19, 2000, as amended by Amendment No. 1 to Stock Purchase Agreement dated as of
the Amendment Date, among the Company, SOFTBANK Parent and SOFTBANK. 

  

	 	1.50	“Subject Affiliate” is defined in Section 15(a). 

  

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	 	1.51	“Term” is defined in Section 24.1. 

  

	 	1.52	“Transaction Agreements” means the Stock Purchase Agreement by and among the Company, SOFTBANK Parent and SOFTBANK dated October 19, 2000, as amended by Amendment
No. 1 to Stock Purchase Agreement by and among the Company, SOFTBANK Parent and SOFTBANK dated as of the Amendment Date; First Amended and Restated Shareholders Agreement by and among SOFTBANK Parent, SOFTBANK, Ariba and the Company dated as of the
Amendment Date; Distribution Agreement by and between the Company and Ariba dated as of the Amendment Date; Amended and restated letter agreement by and between Ariba and SOFTBANK Parent dated as of the Amendment Date (the “Letter
Agreement”); Standby Purchase Agreement by and among SOFTBANK, the Company, and Ariba dated as of the Amendment Date; and the Amended Master Alliance Agreement by and between the Company and Softbank Commerce Corporation dated as of the
Amendment Date, including the Attachment for Reselling of the same date and the Addendum to the Attachment for Reselling; Appointment of Dealers of the same date. 

  

	 	1.53	“Transfer” is defined in Section 13(a). 

  

	 	2.	The Company. The Parties hereby acknowledge that the purpose of the Company shall be to establish and develop the Business. 

  

	 	3.	Operation of the Company. Each Party agrees to take all actions necessary to ensure that the Company shall be operated in accordance with the terms of this Agreement and the
other Transaction Agreements, including, without limitation, to vote all Securities held by it (and to cause all Securities held by any of its Affiliates and permitted transferees under Section 13 to be voted) to effect the terms hereof.

  

	 	4.	Board. 

  
 (a) Board of Directors. The Company will be managed by the Board in accordance with the terms of this Agreement and applicable
law. The Board shall consist of seven (7) Directors, five (5) of whom shall be nominated by Ariba and two (2) of whom shall be nominated by SOFTBANK. One of the Directors nominated by Ariba shall be the Chief Executive Officer. If the Softbank
Company Interest at any time decreases to less than thirty percent (30%), the Parties shall upon written notice from Ariba cause the Board constituency to be adjusted so that only one (1) Director is nominated by SOFTBANK within thirty (30) days of
such written notice. If the Softbank Company Interest at any time decreases to less than fifteen percent (15%), the Parties shall upon written notice from Ariba cause the Board constituency to be adjusted so that no Directors are nominated by
SOFTBANK, within thirty (30) Business Days of such written notice, unless the Softbank Investors shall continue to hold at least forty percent (40%) of the Securities acquired by the Softbank Investors pursuant to the Stock Purchase Agreement and
pursuant to Sections 11 and 18 of this Agreement. 
  
 (b) Removal; Reappointment of Directors. Any Director may be removed for cause in accordance with applicable law. In addition, each Party having the right to appoint a Director pursuant to this Section 4 shall also have the right, in
its sole discretion, to remove such Director at any time by a written notice to the Company and the other Party, in 
  

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 which event the Party which nominated the Director in question shall cause such Director to deliver a written resignation
to the Company. In the case of a vacancy in the office of a Director for any reason (including removal pursuant to the preceding sentence), the vacancy shall be filled by the Party that nominated or has the right to nominate the Director in
question, subject to obtaining the approval of a majority of the remaining Directors. 
  
 (c) Board Meetings. Each Director shall have the authority to convene Board meetings, including the authority to specify the time and place of such meetings (with video conference or any other legally permitted
means of meeting under the Commercial Code to be permitted at the request of any Director); provided, however, that (i) the Board shall meet at least once during each calendar quarter and (ii) written notice of each Board meeting (a
“Meeting Notice”) shall be given not less than ten (10) Business Days in advance of the meeting date (which ten (10) Business Day period may be shortened if each Director either (A) grants a written waiver of notice of such meeting
or (B) actually attends such meeting, without objection). All Meeting Notices shall include a proposed agenda listing the items to be discussed at such Board meeting. Board meetings shall be conducted in the English language (with Japanese
interpretation) and minutes of such meetings shall be prepared by the Company in English and Japanese and distributed to each Director promptly following a meeting. In the event of conflict or controversy between versions, the English version of the
minutes shall control. Proposals or reports brought before any Board or shareholders’ meeting for information or action (including without limitation the Company’s annual and semi-annual financial statements) shall be prepared in English
and Japanese. In the event of conflict or controversy, the English version thereof shall control. Any and all reasonable travel costs (including without limitation business class air travel) and expenses incurred for purposes of attendance by a
Party’s Directors at Board meetings held outside the country where the Party’s corporate headquarters is located shall be reimbursed by the Company. 
  

(d) Board Quorum, Resolutions. A quorum shall be deemed to exist for purposes of Board actions so long as at least four (4) Directors are
present, including one (1) Director appointed by SOFTBANK and one (1) Director appointed by Ariba. If no Director nominated by SOFTBANK or no Director nominated by Ariba attends a duly noticed Board meeting, such meeting shall be immediately
adjourned and rescheduled, and written notice of such rescheduled meeting shall be delivered to the Directors not less than five (5) Business Days in advance of the rescheduled meeting. If the number of Directors who attend such rescheduled meeting
is not sufficient to constitute a quorum under the first sentence of this Section 4(d), a quorum shall be deemed to exist for purposes of the rescheduled meeting notwithstanding such non-attending Directors’ absence so long as there is a
sufficient number of directors present to constitute a valid quorum pursuant to the Commercial Code. Any action, determination or resolution of the Board shall require the affirmative vote of a majority of Directors present at a meeting at which a
valid quorum pursuant to this Section 4(d) is present. Notwithstanding the foregoing, the matters set forth on attached Exhibit 4(d) shall additionally require the affirmative vote of at least one Director appointed by SOFTBANK or SOFTBANK
Parent, provided that at the time such vote is sought the Softbank Investors hold at least forty percent (40%) of the Securities acquired by the Softbank Investors pursuant to the Stock Purchase Agreement and pursuant to Sections 11 and 18 of this
Agreement. 
  

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 5. Representative Director; Key Officers. Ariba shall designate two (2) Representative Directors
of the Company in accordance with the Commercial Code, one of whom shall be the Chief Executive Officer. Ariba shall have the right to approve the Chief Executive Officer and the Key Officers in its sole discretion upon prior consultation with
SOFTBANK. Ariba shall also have the right, exercisable in its sole discretion upon prior consultation with SOFTBANK, (i) to remove and replace the Chief Executive Officer or any Key Officer at any time and (ii) to appoint a successor Chief Executive
Officer or Key Officer in the event a vacancy arises for any reason, in each case effective upon the delivery of written notice to the Chief Executive Officer or the Key Officer and the other Parties. Each Party agrees to cause the Directors
nominated by it to take appropriate action by the Board to effect any such removal, replacement or appointment. 
  
 6. Statutory Auditors. The Company shall have three (3) Statutory Auditors whom shall be nominated by Ariba. A Statutory Auditor may be removed for
cause in accordance with applicable law. Ariba shall also have the right, exercisable in its sole discretion, to remove and replace a Statutory Auditor at any time, effective upon the delivery of written notice to the Statutory Auditor to be removed
and the other Parties. Ariba shall also further have the right to appoint a successor Statutory Auditor in the event a vacancy arises for any reason. 
  
 7. Shareholders’ Meetings. Shareholders of the Company shall receive notice of each shareholders’ meeting at least ten (10) Business Days
before the scheduled date of such meeting. The Company shall have at least one shareholders’ meeting each calendar year. Such meeting will take place at such time and place as is determined by the Board. Meetings shall be conducted in the
English language (with Japanese translation to the extent requested by SOFTBANK paid for by the Company), and minutes of such meetings shall be prepared by the Company in English and Japanese. In the event of conflict or controversy, the English
version of the minutes shall control. 
  
 8. Financial
Statements and Accounting Records. Financial statements for the Company, including without limitation a balance sheet, income statement, statement of cash flows and statement of shareholders’ equity, shall be submitted by the Company to
each of the other Parties (i) within sixty (60) days after the end of each fiscal quarter for such quarter, and (ii) within ninety (90) days after the end of each fiscal year for such year. Each of the annual financial statements shall be audited
and certified by an internationally recognized accounting firm (which will act as an independent auditor under the Special Exceptions Law) retained by the Company. All financial statements shall be (i) prepared in accordance with generally accepted
accounting principles in Japan and (ii) in reasonable detail and shall contain such financial data as Ariba, SOFTBANK Parent and SOFTBANK reasonably request in order to keep each of them advised of the Company’s financial status (although
quarterly statements need not include footnotes and may be subject to year-end adjustments). 
  
 9. Right Of Inspection. During office hours of the Company, and upon reasonable notice to the Company, each of SOFTBANK, SOFTBANK Parent and Ariba shall have full access to all properties, books of account, and
records of the Company, and each such Party shall have the right to make copies from such books and records at its own expense. Any information obtained by SOFTBANK, SOFTBANK Parent or Ariba through exercise of rights granted under this Section 9
shall, to the extent constituting Confidential Information under 
  

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 Section 7.3 of the Stock Purchase Agreement, be subject to the confidentiality provisions set forth in such Section 7.3.

  
 10. Softbank Rights. Without limiting Section 4, if any
matter shall require the vote of holders of more than a majority of the voting Securities pursuant and entitled to vote on such matter, whether pursuant to the Articles, the Commercial Code, or any other applicable law, agreement or instrument,
SOFTBANK and SOFTBANK Parent shall vote (and shall cause all of its Affiliates and permitted transferees pursuant to this Agreement to vote) on such matter the same way as Ariba votes Securities held by it on such matter. Without limiting Section 4,
SOFTBANK and SOFTBANK Parent agree not to exercise (and to cause all of its Affiliates and permitted transferees pursuant to Section 13 of this Agreement not to exercise) any rights as a shareholder of the Company arising under the Commercial Code
or other applicable law that would prevent the Company from being operated in accordance with the terms of this Agreement and the other Transaction Agreements, including any rights granted to a shareholder of the Company pursuant to Articles 358,
413-3, 406-2, 257, 280, 426, 381, 232-2, 256-3, 280-10, 341-7, 341-18, 280-15, 363, 372, 380, 415, 431, 245-2, 349, 408-3, 280-5-2, 341-2-6 and 341-11-2 of the Commercial Code; provided, however, that in no event shall any Softbank Investor be
prevented from exercising any right expressly granted to such party under this Agreement or any Transaction Agreement. Each Softbank Investor agrees to enter into one or more voting agreements or to grant Ariba one or more proxies in any form
reasonably requested by Ariba to effect the provisions of this Section 10. 
  
 11. Company Interests. The Parties agree to implement the Company’s capital structure and the terms of this Agreement so that at all times during the term hereof, including following an IPO, (i) the Ariba
Company Interest shall not be less than fifty and one tenth percent (50.1%), without payment of additional consideration to the Company, regardless of whether any Ariba Investor (other than the Company) shall exercise any preemptive, first refusal
or other rights to acquire Securities issued by the Company and (ii) the Softbank Company Interest shall not be less than thirty and one tenth percent (30.1%), without payment of additional consideration to the Company, assuming that the Softbank
Investors (A) exercise the rights of first refusal to the fullest extent permitted by Section 18 and (B) exercise any other preemptive, right of first refusal or other rights to acquire Securities offered to them by the Company. The Company shall
issue additional Common Stock to Ariba and additional Common Stock to SOFTBANK and SOFTBANK Parent (with an equal number of shares to be issued to SOFTBANK and SOFTBANK Parent), without payment of additional consideration, to effect the provisions
of this Section 11. This Agreement may be terminated by Ariba, on the one hand, and SOFTBANK and SOFTBANK Parent, on the other hand, if the issuance of Common Stock to Ariba, on the one hand, and SOFTBANK and SOFTBANK Parent, on the other hand,
pursuant to this Section 11, without payment of additional consideration to the Company, would violate applicable law. Notwithstanding the foregoing, upon written notice by Ariba to the Company, the provisions of this Section 11 shall not apply to
the issuance of any Securities in a transaction referred to in Section 18(f)(iii) and (iv), provided that Ariba, SOFTBANK and SOFTBANK Parent are treated in the same way proportionately. 
  
 12. Annual Business Plan. The Company’s management shall discuss its proposed Annual Business Plan with SOFTBANK
before submitting such Annual Business Plan to the Board for approval. 
  
  

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 13. Transfer Restrictions. 
  
 (a) Neither SOFTBANK Parent nor SOFTBANK shall, except as otherwise specifically provided in this Agreement, sell, transfer,
assign, hypothecate or in any way alienate (“Transfer”) any of its Securities. 
  
 (b) Notwithstanding Section 13(a), SOFTBANK Parent and SOFTBANK may Transfer all or any portion of its Securities (i) to any 80% Subsidiary or 80% Parent
of such Party or (ii) after the closing of an IPO, to any Person upon the completion of such Party’s compliance with the restrictions imposed by Section 14 of this Agreement; provided that the following conditions shall be satisfied in
the case of a Transfer pursuant to clause (i) above of this Section 13(b): 
  
 A. (x) in the case of a Transfer to an 80% Subsidiary, such Party covenants that such 80% Subsidiary shall remain an 80% Subsidiary of such Party so long as the transfer restrictions set forth in this Section 13 are
in effect and the 80% Subsidiary owns the Transferred shares; and (y) in the case of a Transfer to an 80% Parent, such 80% Parent covenants that it shall remain an 80% Parent of such Party so long as the transfer restrictions set forth in this
Section 13 are in effect and the 80% Parent owns the Transferred shares; and 
  
 B. such Party, or, in the case of a Transfer to an 80% Subsidiary or an 80% Parent, such 80% Subsidiary or 80% Parent represents and covenants that the shares transferred to the transferee are not, and will not be,
subject to any lien or other security interest, whether direct or indirect, unless such lien or security interest is consented to by the Company. 
  
 (c) Intentionally Blank. 
  
 (d) In the case of any Transfer permitted under Section 13(b)(i), SOFTBANK Parent or SOFTBANK, as the case may be, shall deliver to the Company and Ariba
(i) at least ten (10) Business Days prior to such Transfer, a written notice stating its intention to Transfer the Securities to be Transferred, the name of the transferee, whether such transferee is an Affiliate, the number of Securities to be
Transferred, and the price and other material terms and conditions of the Transfer, (ii) except as otherwise specifically provided herein, on or prior to the effective date of the Transfer and in a form reasonably acceptable to the Company and its
counsel, the transferee’s written acknowledgement of and agreement to be bound by, and to vote the Transferred Securities at all times in accordance with, the terms of this Agreement and any other Transaction Agreement, and (iii) if reasonably
requested by the Company, an opinion of counsel, reasonably satisfactory to the Company that such Transfer will not require registration of such shares under any applicable securities laws. 
  
 (e) Ariba shall not, except as otherwise specifically provided in this
Agreement, Transfer any of its Securities. 
  
 (f) Notwithstanding
Section 13(e), Ariba may Transfer all or any portion of its Securities (i) to any Person, provided that Ariba and its Affiliates continue to own at least fifty percent (50%) of the Securities owned by Ariba at the close of business on the
Effective Date and subsequently acquired by Ariba pursuant to Sections 11 and 18 of this 
  

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 Agreement, or (ii) after the closing of an IPO, to any Person upon the completion of such Party’s compliance with
the restrictions imposed by Section 14 of this Agreement. 
  
 (g)
In the case of any Transfer permitted under Section 13(f)(i), Ariba shall deliver to the Company and SOFTBANK (i) at least ten (10) business days prior to such Transfer, a written notice stating its intention to Transfer the Securities to be
Transferred, the name of the transferee, whether such transferee is an Affiliate, the number of Securities to be Transferred, and the price and other material terms and conditions of the Transfer, (ii) except as otherwise specifically provided
herein, on or prior to the effective date of the Transfer and in a form reasonably acceptable to the Company and its counsel, the transferee’s written acknowledgement of and agreement to be bound by, and to vote the Transferred Securities at
all times in accordance with, the terms of this Agreement and any other Transaction Agreement and (iii) if reasonably requested by the Company, an opinion of counsel, reasonably satisfactory to the Company that such Transfer will not require
registration of such shares under any applicable securities laws. 
  
 14. “Market Stand-Off” Agreement. Each of Ariba, SOFTBANK Parent and SOFTBANK hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the
final prospectus relating to the Company’s IPO and ending on the date specified by the Company and the managing underwriter(s) (such period not to exceed one hundred eighty (l80) days) (i) lend, offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise Transfer, directly or indirectly, any Securities, or (ii) enter into any swap or other arrangement that transfers
to another, in whole or in part, any of the economic consequences of ownership of the Securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Securities, in cash or otherwise. The underwriters
in connection with the Company’s initial public offering are intended third party beneficiaries of this Section 14 and shall have the right, power and authority to enforce the provisions hereof as though they were a Party hereto. 
  
 Notwithstanding the foregoing provisions of this Section 14, the obligations
of Ariba, SOFTBANK Parent and SOFTBANK under this Section 14 shall not be more restrictive than the least restrictive “market standoff” obligations to which any of the Company’s executive officers, directors or 10% or greater
shareholders are subject. In order to enforce the foregoing covenant, the Company may to the extent permitted by applicable law impose stop-transfer instructions with respect to the Shares owned by the Investor (and the shares or securities of every
other person subject to the foregoing restriction) until the end of such period. 
  
 15. Exclusivity. 
  
 (a)
During the term of this Agreement, SOFTBANK agrees that it will not, and will not permit any Affiliate in which SOFTBANK directly or indirectly holds a fifty percent (50%) or greater ownership interest (a “Subject Affiliate”), to do
any of the following: 
  
 (i) make any investment in any company
(each, a “Listed Competitor”) identified on a schedule furnished by Ariba to SOFTBANK 
  

 10 

 (the ”Schedule”); provided, however, that SOFTBANK and its Subject Affiliates shall act in good faith to
avoid entering into relationships with parties who could reasonably be anticipated to damage the business of Ariba or the Company; provided, further, that this Section 15(a)(i) shall not apply to (A) any Subject Affiliate of SOFTBANK that is
publicly listed, or any investment fund or other investment vehicle in which SOFTBANK holds an equity interest (as general partner, limited partner or otherwise) to the extent such funds or vehicles are operating solely for investment purposes; or
(B) the acquisition by SOFTBANK or any of its Subject Affiliates, solely for investment purposes, of an interest of less than 5% of a publicly traded company provided that the investing party does not violate any other provision of this Section 15.

  
 (ii) provide, develop or offer any products or services of any
Listed Competitor that are directly competitive with the procurement, market place or other principal software products or value added network services of the Company or Ariba from time to time or other services expressly intended to offer the
procurement or marketplace functions of such products (collectively, a “Competitive Product”); provided, however, that this Section 15(a)(ii) shall not preclude SOFTBANK or any of its Subject Affiliates from providing,
developing or offering general maintenance, hosting, consulting or other professional services; 
  
 (iii) provide, develop or offer any products or services that are directly competitive with the procurement, market place or other principal software
products or value added network services of the Company or Ariba from time to time or other services expressly intended to offer the procurement or marketplace functions of such products; provided, however, that this Section 15(a)(iii) shall
not preclude SOFTBANK or any of its Subject Affiliates from providing, developing or offering general maintenance, hosting, consulting or other professional services; or 
  
 (iv) make or permit any public announcement of a commercial relationship with any Listed Competitor with respect to
providing, developing or offering a Competitive Product; provided, however this Section 15(a)(iv) shall not apply to any Subject Affiliate of SOFTBANK that is publicly listed or any investment fund or investment vehicle in which SOFTBANK
holds an equity interest (as general partner, limited partner or otherwise) to the extent such investment funds or investment vehicles are operating solely for investment purposes. 
  
 (b) Ariba shall have the right to update the Schedule in writing to add or delete parties to the list of Listed Competitors
on an annual basis; provided, however, that Ariba may, up to two (2) times each year, replace one party on the Schedule with a party that it reasonably believes to be a significant competitor to Ariba or the Company and; provided, further that (i)
neither SOFTBANK nor any Affiliate will be required to divest, unwind or otherwise dispose of any investments or other contractual relationships established prior to the listing of a company as a Listed Competitor and (ii) such updated
Schedule shall not exceed fifty (50) companies (not taking into account their controlled affiliates). 
  
 (c) For purposes of this Section 15, SOFTBANK shall not be deemed an investment fund or investment vehicle or a Subject Affiliate. 
  

 11 

 (d) This Section 15 shall terminate at such time as Ariba by written notice pursuant to Section
4(a) shall have caused SOFTBANK not to have any Directors nominated by SOFTBANK on the Board, but not if any Director designated by SOFTBANK ceases to serve as a Director for any other reason. 
  
 16. Co-Sale Rights. 
  
 (a) If any Ariba Investor desires to Transfer any of its Securities (the
“Offered Co-Sale Securities”) to any Person (other than an Ariba Investor) and such Offered Co-Sale Securities, together with any Securities previously Transferred by Ariba Investors to Persons (other than Ariba Investors) represent
eleven percent (11%) or more of the outstanding Fully Diluted Securities measured at the time of such Transfer, the Softbank Investors (each, a “Co-Sale Shareholder”) shall have the right and option to include a pro rata portion of
the Securities to be sold in the proposed sale at the same price per share and on the same other terms and conditions that apply to Ariba in the proposed sale. Each Co-Sale Shareholder’s pro rata portion shall be equal to the product of (i) the
outstanding Securities owned by such Co-Sale Shareholder divided by the outstanding Securities owned by Ariba and all Co-Sale Shareholders who duly elect to sell Securities in the transaction, multiplied by (ii) the total number of Securities
proposed to be sold in the transaction. The number of Offered Co-Sale Securities to be sold by Ariba in the transaction shall be reduced to the extent that Co-Sale Shareholders elect to participate in the transaction. 
  
 (b) Ariba shall give notice to each Co-Sale Shareholder of the proposed sale.
Such notice shall contain the proposed sales price per share and the other material terms and conditions on which Ariba desires to sell the Offered Co-Sale Securities. Each Co-Sale Shareholder may exercise its right to participate in the sale
pursuant to this Section 16 by giving notice to Ariba and each other Co-Sale Shareholder within fifteen (15) days after receipt of such notice from Ariba. 
  
 17. Additional Capital. If the Company seeks to raise additional capital primarily for financing rather than strategic purposes, the Company shall
consider in good faith raising debt financing rather than equity financing after consulting with SOFTBANK regarding the Company’s financing alternatives, provided that whether the Company seeks to raise debt or equity financing and the terms of
any such financing shall be determined by the Board in its sole good faith discretion. 
  
 18. Right of First Offer. 
  
 (a) Subject to the terms and conditions specified in this Section 18, the Company hereby grants to each Investor a right of first offer with respect to future sales by the Company of its Securities. Each time the Company proposes to offer
any Securities, the Company shall first make an offering of the Securities to the Investors in accordance with the following provisions. 
  
 (b) The Company shall deliver a notice in accordance with Section 26.2 (“Notice”) to each Investor stating (i) its bona fide intention to
offer the Securities, 
  

 12 

 (ii) the number of Securities to be offered (the “Offered Securities”), and (iii) the price and terms
upon which it proposes to offer the Offered Securities. 
  
 (c) By
written notification received by the Company, within twenty (20) calendar days after receipt of the Notice, the Investor may elect to purchase or obtain, at the price and on the terms specified in the Notice, up to that portion of the Offered
Securities that equals the proportion that the number of shares of Securities issued and held by the Investor, after giving effect to the exchange, exercise and conversion of all Securities held by Investor that are exchangeable and exercisable for
and convertible into Securities, bears to the total number of shares of Securities then outstanding, after giving effect to the exchange, exercise and conversion of all securities then outstanding that are exchangeable and exercisable for and
convertible into Securities. 
  
 (d) Notwithstanding Section
18(c), by written notification received by the Company, within twenty (20) calendar days after receipt of the Notice, the Softbank Investors may elect to purchase or obtain, at the price and on the terms specified in the Notice, a number of the
Offered Securities such that the Softbank Company Interest immediately after the sale of the Offered Securities (after giving effect to any issuance of Securities to Ariba pursuant to Section 11 hereof) and assuming that the Softbank Investors
purchase all of the Offered Securities that they are entitled to purchase pursuant to this Section 18(d)) equals the Softbank Company Interest immediately before the sale of such Offered Securities. Notwithstanding Section 18(c), the number of
Offered Securities that the Ariba Investors are entitled to purchase pursuant to Section 18(c) shall be reduced to the extent necessary to permit the Softbank Investors to purchase Offered Securities pursuant to this Section 18(d). 
  
 (e) If all Offered Securities that Investors are entitled to obtain pursuant
to Sections 18(c) and (d) are not elected to be obtained as provided in Sections 18(c) and (d) hereof, the Company may, during the one hundred twenty (120) day period following the expiration of the period provided in subsection 18(c) hereof, offer
the remaining unsubscribed portion of such Offered Securities to any person or persons at a price not less than, and upon terms no more favorable to the offeree than those specified in the Notice. If the Company does not enter into an agreement for
the sale of the Offered Securities within such period, or if such agreement is not consummated within sixty (60) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such Offered Securities shall not be
offered unless first reoffered to the Investor in accordance herewith. 
  
 (f) The right of first offer in this Section 18 shall not be applicable to (i) the issuance or sale of shares of Common Stock (or options therefor) to employees, directors and consultants for the primary purpose of soliciting or retaining
their services; (ii) the issuance of Securities pursuant to a bona fide public offering of shares of Common Stock, (iii) the issuance of Securities in connection with a bona fide business acquisition of or by the Company, whether by merger,
consolidation, sale of assets, sale or exchange of stock or otherwise, (iv) the issuance of stock, warrants or other Securities or rights not primarily for equity financing purposes to persons or entities with which the Company has business
relationships or will have a strategic business relationship following such issuance, (vi) the offer and sale of Securities within one hundred eighty (180) days after the Effective Date at a pre-money valuation of the Company of at least $200
million to strategic partners, as 
  

 13 

 contemplated by the Parties, or (v) issuances or distributions of securities to Ariba, SOFTBANK or SOFTBANK Parent
pursuant to Section 11 hereof. The right of first offer in Section 18(c) but not Section 18(d) shall terminate upon the closing of the IPO. 
  
 19. IPO Commitment. 
  
 (a) The Parties intend that, on or prior to the third (3rd) anniversary of the Effective Date, the Company will seek to conduct an initial public offering
of shares of its Common Stock (“IPO”), subject to prevailing market conditions and the condition and performance of the Company. 
  
 (b) In the event an IPO has not been consummated on or prior to the third (3rd) anniversary of the Effective Date, at the request of SOFTBANK or SOFTBANK
Parent, the Board shall form a committee of the Board (the “Committee”) consisting of one (1) Director of the Board designated by each of Ariba and SOFTBANK. The Committee shall, from time to time at the request of either member,
consult with an investment banking firm of recognized international standing that is unaffiliated with the Committee members or the Parties. The Committee shall request such investment banking firm to thereafter make a formal review and presentation
to the Board as to the commercial reasonableness of proceeding with an IPO in light of then prevailing market conditions and the condition and performance of the Company. Based on the recommendation of such investment banking firm, the Committee
shall make a recommendation to the full Board about proceeding with an IPO, which the Board shall consider and review in good faith based on benefits and risks to the Company of the proposed IPO. If the Board approves proceeding with an IPO, the
Company shall use commercially reasonable efforts to proceed promptly with an IPO. 
  
 (c) Each shareholder agrees to enter into a customary market standoff agreement with the underwriter(s) in the IPO with substantially the same terms and conditions as set forth in Section 14. 
  
 20. Certain Breaches. If SOFTBANK or SOFTBANK Parent alleges in
writing to the Company, after consultation with its outside counsel, that it is probable that Ariba or any Ariba Affiliate (other than the Company and its controlled Affiliates) has breached any contract between Ariba or any Ariba Affiliate (other
than the Company and its controlled Affiliates), on the one hand, and the Company or any of its controlled Affiliates, on the other hand, the Board shall at the request of SOFTBANK or SOFTBANK Parent form a committee of the Board (the
“Litigation Committee”) consisting of two (2) Directors designated by SOFTBANK. The Committee shall have the sole and exclusive authority to (i) determine whether to assert on behalf of the Company that Ariba or any other Ariba
Affiliate (other than a controlled Affiliate of the Company) has breached any such contract and (ii) if any such assertion is made, to control the resolution of any such dispute, but only if such dispute is resolved through the dispute resolution
process set forth in Section 26.1 hereof as if applicable to disputes referred to in this Section 20. Ariba agrees, upon behalf of itself and its controlled Affiliates (other than the Company and its controlled Affiliates) and the Company agrees on
behalf of itself and its controlled Affiliates to submit any such dispute to the dispute resolution process set forth in Section 26.1 hereof. Notwithstanding the foregoing, this Section 20 shall not apply to any claims for breach of contract that
are released and discharged pursuant to Section 1 
  

 14 

 of the Release. Prior to March 31, 2004, no action by the Litigation Committee pursuant to this Section 20 shall
constitute an election to terminate the Distribution Agreement for any purpose. 
  
 21. Modification of Transaction Agreements. 
  
 (a) If at anytime on or after December 1, 2002, the Performance Criteria are not satisfied for at least the four (4) immediately preceding full calendar quarters, Ariba may at its sole discretion cause (i) three (3)
of the five (5) Directors nominated by it pursuant to Section 4(a) hereof (or such larger number of Directors as would, together with the Directors then appointed by SOFTBANK, constitute a majority of the members of the Board) to be removed and (ii)
at SOFTBANK’s election, the resulting vacancies to be filled by the same number of individuals designated by SOFTBANK at its sole discretion (such change in the composition of Board pursuant to clause (i) of this sentence being herein referred
to as a “Control Shift,” regardless of whether SOFTBANK shall elect to fill the resulting vacancies pursuant to clause (ii) of this sentence). While any Control Shift is in effect, SOFTBANK or SOFTBANK Parent may exercise all of the
rights otherwise granted to Ariba pursuant to Sections 5 and 6 hereof. 
  
 (b) At any time after two full calendar quarters after a Control Shift, but in no event prior to April 1, 2004, Ariba may at its sole discretion by written notice to SOFTBANK effect a Modification Event, unless (i) the Company is then
satisfying the Performance Criteria and (ii) the Company has made up any failure to satisfy the Performance Criteria during the two (2) consecutive full calendar quarters prior to the Control Shift. Notwithstanding the foregoing, Ariba may not
effect a Modification Event if during the period the Control Shift is in effect Ariba has either (i) replaced any Director nominated by it pursuant to Section 21(a) hereof or (ii) voted as a shareholder of the Company (or permitted any of its
Affiliates to vote as a shareholder of the Company) against any written proposals submitted for shareholder approval that have been approved by a majority of the Directors during the period of the Control Shift (other than any matters set forth on
attached Exhibit 21(b), which shall require the affirmative vote of at least one Director appointed by Ariba other than pursuant to Section 21(a)). 
  
 (c) Upon the occurrence of a Modification Event: (i) pursuant to Section 2.6 of the Distribution Agreement, (A) the license granted to the Company
pursuant to the Distribution Agreement shall become a non-exclusive license rather than an exclusive license and (B) the Company shall cease to have the right to use certain tradenames and trademarks; (ii) the Control Shift shall remain in effect
permanently, (iii) SOFTBANK and SOFTBANK Parent may exercise indefinitely all of the rights otherwise granted to Ariba pursuant to Sections 5 and 6 hereof; (iv) Section 10 hereof shall apply to Ariba and not to SOFTBANK, SOFTBANK Parent or any other
Softbank Investor; and (v) the exclusivity provisions set forth in Section 15 hereof and in Section 5 of the Letter Agreement shall terminate and be of no further force or effect. 
  
 (d) For purposes of this Agreement, “Performance Criteria” means criteria for the performance of the
Company, which (i) are specified by the Chief Executive Officer and included as part of the Annual Business Plan and (ii) if not achieved, 
  

 15 

 indicate that the Company is failing in significant respects to achieve the Annual Business Plan to which such
Performance Criteria relate. 
  
 22. Representations and
Warranties of SOFTBANK and SOFTBANK Parent. Each of SOFTBANK and SOFTBANK Parent hereby represents and warrants to Ariba and the Company that, as of the Effective Date, the following statements are and shall be true and correct: 
  
 (a) Organization. Each of SOFTBANK and SOFTBANK Parent is a
corporation duly organized and validly existing under the laws of Japan, and has the corporate power and authority to enter into and perform this Agreement and the other Transaction Agreements to which it is a party. 
  
 (b) Permits; Approvals. Each of SOFTBANK and SOFTBANK Parent holds all
licenses, permits, certifications and other authorizations, the absence of which would have a material adverse effect on its financial condition or business, and there has been no default or violation under any such authorization and there is no
proceeding or investigation that is pending or, to each such Party’s knowledge, threatened under which any such authorization may be revoked, terminated or suspended. 
  
 (c) Authorization. All corporate action on the part of each of SOFTBANK and SOFTBANK Parent necessary for the
authorization, execution and delivery of this Agreement and the other Transaction Agreements to which it is a party and for the performance of all of its obligations hereunder and thereunder has been taken, and this Agreement and the other
Transaction Agreements to which it is a party when fully executed and delivered, shall each constitute a valid, legally binding and enforceable obligation of each such Party. 
  
 (d) Government and Other Consents. No consent, authorization, license, permit, registration or approval of, or
exemption or other action by, any governmental or public body or authority, or any other Person, is required in connection with the execution, delivery and performance by each of SOFTBANK and SOFTBANK Parent of this Agreement and the other
Transaction Agreements to which it is a party, or if any such consent is required, each such Party has satisfied the applicable requirements. 
  
 (e) Effect of Agreement. The execution, delivery and performance of this Agreement and the other Transaction Agreements to which SOFTBANK or
SOFTBANK Parent is a party will not (i) violate the Articles of Incorporation of such party or any provision of any law, statute, rule or regulation to which such party is subject, (ii) violate any judgment, order, writ, injunction or decree of any
court applicable to such party, (iii) have any effect on the compliance of such party with any applicable licenses, permits or authorizations which would materially and adversely affect such party, (iv) result in the breach of, give rise to a right
of termination, cancellation or acceleration of any obligation with respect to (presently or with the passage of time), or otherwise be in conflict with any term of, or affect the validity or enforceability of, any agreement or other commitment to
which such party is a party and which would materially and adversely affect such party or (v) result in the creation of any lien, pledge, mortgage, claim, charge or encumbrance upon any assets of such party. 
  

 16 

 (f) Litigation. There are no actions, suits or proceedings pending or, to such party’s
knowledge, threatened, against such party before any court or governmental agency which question such party’s right to enter into or perform its obligations under this Agreement or the other Transaction Agreements to which it is a party, or
which question the validity of this Agreement or any of the other Transaction Agreements. 
  
 (g) Disclosure. No representation or warranty by SOFTBANK or SOFTBANK Parent contained in this Agreement or in any other Transaction Agreements to which such party is a party, and no exhibit, writing or other
instrument required to be furnished by such party pursuant hereto or thereto contains any untrue statement of a material fact or omits any material fact necessary in order to make the statements and information contained herein or therein not
misleading. 
  
 23. Representations and Warranties of
Ariba. Ariba hereby represents and warrants to SOFTBANK Parent and SOFTBANK that, as of the Effective Date, the following statements are true and correct: 
  

(a) Organization. Ariba is a corporation duly organized and validly existing under the laws of Delaware. Ariba has the corporate power and
authority to enter into and perform this Agreement and the other Transaction Agreements to which it is a party. 
  
 (b) Permits; Approvals. Ariba holds all licenses, permits, certifications and other authorizations, including without limitation any such
authorizations required under U.S. federal securities laws, the absence of which would have a material adverse effect on the financial condition or business of Ariba, and there has been no default or violation under any such authorization and there
is no proceeding or investigation that is pending or, to Ariba’s knowledge, threatened under which any such authorization may be revoked, terminated or suspended. 
  
 (c) Authorization. All corporate action on the part of Ariba necessary for the authorization, execution and delivery
of this Agreement and the other Transaction Agreements to which it is a party and for the performance of all of its obligations hereunder and thereunder has been taken, and this Agreement, the Distribution Agreement and the other Transaction
Agreements to which it is a party, when fully executed and delivered, shall each constitute a valid, legally binding and enforceable obligation of Ariba. 
  
 (d) Government and Other Consents. Except as disclosed in the Transaction Agreements, no consent, authorization, license, permit, registration or
approval of, or exemption or other action by, any governmental or public body or authority, or any other Person, is required in connection with Ariba’s execution, delivery and performance of this Agreement or the other Transaction Agreements to
which it is a party, or if any such consent is required, Ariba has satisfied any applicable requirements. 
  
 (e) Effect of Agreement. Ariba’s execution, delivery and performance of this Agreement and the other Transaction Agreements to which it is a
party will not (i) violate the Certificate of Incorporation of Ariba or any provision of any law, statue, rule 
  

 17 

 or regulation to which it is subject, (ii) violate any judgment, order, writ, injunction or decree of any court
applicable to Ariba, (iii) have any effect on the compliance of Ariba with any applicable licenses, permits or authorizations which would materially and adversely affect Ariba, (iv) result in the breach of, give rise to a right of termination,
cancellation or acceleration of any obligation with respect to (presently or with the passage of time), or otherwise be in conflict with, any term of, or affect the validity or enforceability of any agreement or other commitment to which Ariba is a
party and which would materially and adversely affect Ariba, or (v) result in the creation of any lien, pledge, mortgage, claim, charge or encumbrance upon any assets of Ariba. 
  
 (f) Litigation. There are no actions, suits or proceedings pending or, to Ariba’s knowledge, threatened, against
Ariba before any court or governmental agency which question Ariba’s right to enter into or perform this Agreement or other Transaction Agreements to which it is a party, or which question the validity of this Agreement or any of the other
Transaction Agreements. 
  
 (g) Disclosure. No
representation or warranty by Ariba contained in this Agreement or any other Transaction Agreement to which it is a party, and no exhibit, writing or other instrument required to be furnished pursuant hereto contains any untrue statement of a
material fact or omits any material fact necessary in order to make the statements and information contained herein or therein not misleading. 
  
 24. Effectiveness, Term and Termination. 
  
 24.1 Term. This Agreement shall be effective as of the Effective Date and shall continue in effect until and unless terminated
pursuant to Section 24.2. 
  
 24.2
Termination. This Agreement may be terminated as follows: 
  
 (a) Upon the Parties’ mutual written agreement. 
  
 (b) By either Ariba or the Company, effective immediately upon written notice to the other Parties, if either SOFTBANK Parent or SOFTBANK
breaches any material provision of this Agreement or of any of the other Transaction Agreements in any material respect and such breach continues for a period of thirty (30) days after the delivery of written notice of the default, describing the
default in reasonable detail. 
  
 (c) By either
SOFTBANK Parent or SOFTBANK, effective immediately upon written notice to the other Parties, if Ariba or the Company breaches any material provision of this Agreement or of any of the other Transaction Agreements in any material respect and such
breach continues for a period of thirty (30) days after the delivery of written notice of the default, describing the default in reasonable detail. 
  
 (d) By Ariba, effective immediately upon written notice to the other Parties in the event that either Ariba or the Company (except, in the
case of the Company, while a Control Shift is in effect) has elected to terminate the Distribution Agreement in accordance with its terms. 
  

 18 

 (e) By either SOFTBANK Parent, SOFTBANK, Ariba or the Company, effective immediately upon written notice
to the other Parties, in the event that any other Party is dissolved, liquidated or declared bankrupt or a filing for voluntary or involuntary. 
  
 (f) Notwithstanding the foregoing, the right of SOFTBANK and SOFTBANK Parent to terminate this Agreement (i) pursuant to Section 24.2(c), as a result of a
breach by the Company, or (ii) pursuant to Section 24.2(d), as a result of a termination of the Distribution Agreement by the Company, shall exist only if the Company is an Affiliate of Ariba and only if no Control Shift is in effect. 
  
 (g) For purposes of this Section 24.2, the term “Transaction
Agreements” has the same meaning given to such term in Section 8.2(f) of the Stock Purchase Agreement. 
  
 24.3 Continuing Liability. Notwithstanding the foregoing, Article 25 and Article 26 (except for Section 26.6, which shall not survive termination)
shall survive a termination of the Agreement. Termination of this Agreement for any reason shall not release any Party from any liability or obligation which has already accrued as of the effective date of such termination, and shall not constitute
a waiver or release of, or otherwise be deemed to prejudice or adversely affect, any rights, remedies or claims, whether for damages or otherwise, which a Party may have hereunder, at law, equity or otherwise or which may arise out of or in
connection with such termination. 
  
 25. Incidental and
Consequential Damages. 
  
 NO PARTY NOR ITS AFFILIATES WILL BE
LIABLE TO THE OTHER PARTIES UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING WITHOUT LIMITATION LOST PROFITS) WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT.

  
 EACH PARTY AGREES AND ACKNOWLEDGES THAT MONEY DAMAGES MAY NOT
BE AN ADEQUATE REMEDY FOR ANY BREACH OF THE PROVISIONS OF THIS AGREEMENT AND THAT EACH PARTY MAY, IN ITS SOLE DISCRETION, APPLY FOR SPECIFIC PERFORMANCE AND INJUNCTIVE RELIEF IN ORDER TO ENFORCE OR PREVENT ANY VIOLATIONS OF THE PROVISIONS OF THIS
AGREEMENT. 
  
 26. Miscellaneous. 
  
 26.1 Governing Law; Dispute Resolution. The validity, construction and
enforceability of this Agreement and all related agreements, collectively or separately, shall be governed by and construed in accordance with the laws of the State of California. The Parties shall attempt to resolve all disputes between the Parties
arising out of or relating to this Agreement amicably through good faith discussions upon the written request of any Party. In the event that any such dispute cannot be resolved thereby within a period of sixty (60) days after such notice has been
given (the last day of such sixty (60) day period being herein referred to as the “Arbitration Date”), such dispute shall be finally settled by arbitration in San Francisco, California, using the English language in accordance with the
Arbitration Rules and Procedures 
  

 19 

 of JAMS then in effect, by one or more commercial arbitrator(s) with substantial experience in resolving complex
commercial contract disputes, who may or may not be selected from the appropriate list of JAMS arbitrators. If the Parties cannot agree upon the number and identity of the arbitrators within fifteen (15) days following the Arbitration Date, then a
single arbitrator shall be selected on an expedited basis in accordance with the Arbitration Rules and Procedures of JAMS. Any arbitrator so selected shall have substantial experience in the software industry. The arbitrator(s) shall have the
authority to grant specific performance and to allocate between the Parties the costs of arbitration (including service fees, arbitrator fees and all other fees related to the arbitration) in such equitable manner as the arbitrator(s) may determine.
The prevailing Party in the arbitration shall be entitled to receive reimbursement of its reasonable expenses (including reasonable attorneys’ fees, expert witness fees and all other expenses) incurred in connection therewith. Judgment upon the
award so rendered may be entered in a court having jurisdiction or application may be made to such court for judicial acceptance of any award and an order of enforcement, as the case may be. Notwithstanding the foregoing, each Party shall have the
right to institute an action in a court of proper jurisdiction for preliminary injunctive relief pending a final decision by the arbitrator(s), provided that a permanent injunction and damages shall only be awarded by the arbitrator(s). For all
purposes of this Section 26.1, the Parties consent to exclusive jurisdiction and venue in the United States federal Courts located in the Northern District of California. For the avoidance of doubt, the validity, construction, and enforceability of
this Agreement and the resolution of disputes arising out of and relating to this Agreement and any related agreements (other than an action solely between Nihon Ariba K.K. and Softbank Commerce Corporation relating solely to the Amended Master
Alliance Agreement), collectively or separately, shall be governed solely by this Section 26.1, notwithstanding that (i) the Amended Master Alliance Agreement is governed by Japanese law and uses a different dispute resolution procedure or (ii)
disputes arising out of or relating to this Agreement are, or are asserted to, in any way relate to or be based on similar facts as disputes arising out of or relating to the Amended Master Alliance Agreement.  
  
 26.2 Notices and Other Communications. Unless otherwise provided, any
notice required or permitted under this Agreement shall be given in writing and in English and shall be deemed effectively given (i) upon personal delivery to the party to be notified, (ii) by delivery by confirmed facsimile or (iii) three (3)
Business Days after being provided to an internationally recognized courier service with an expected delivery of no more than three (3) business days, in each case to the party to be notified at the address indicated for such party on the signature
page hereof, or at such other address as such party may designate by ten (10) days’ advance written notice to the other Parties: 
  
 (a) If to SOFTBANK Parent 
  
 SOFTBANK Corp. 
 24-1 Nihonbashi-Hakozakicho 
 Chuo-ku, Tokyo 103-8501 
 Japan 
 Fax:
+81-3-5641-3401 
 Attention: Masayoshi Son 
  

 20 

 with a copy to: 
  
 Morrison & Foerster LLP 
 AIG Building, 11th Floor 
 1-1-3 Marunouchi 
 Chiyoda-ku, Tokyo 
 100-0005 Japan 
 Fax: +81-3-3214-6512 
 Attention: Ken Siegel, Esq. 
  
 (b) If to SOFTBANK 
  
 SOFTBANK EC Holdings Corp. 
 24-1 Nihonbashi-Hakozakicho 
 Chuo-ku, Tokyo 103-8501 
 Japan 
 Fax:
+81-3-5641-3406 
 Attention: Ken Miyauchi 
  
 with a copy to: 
  
 Morrison & Foerster LLP 
 AIG Building, 11th Floor 
 1-1-3 Marunouchi 
 Chiyoda-ku, Tokyo 
 100-0005 Japan 
 Fax: +81-3-3214-6512 
 Attention: Ken Siegel, Esq. 
  
 (c) If to the Company 
  
 Nihon Ariba K.K. 
 Shinjuku Park Tower 
 7-1, Nishi-Shinjuku 3-chome 
 Shinjuku-ku, Tokyo 
 Fax: +81-3-5326-3170 
 Attention: President and Chief Executive Officer 
  

with a copy to: 
  
 Ariba, Inc. 
 807 11th Avenue 
 Sunnyvale, CA 94089 USA 
 Fax: (650) 930-8193 
 Attention: General Counsel and Chief Financial Officer 
  

 21 

 (d) If to Ariba 
  
 807 11th Avenue 
 Sunnyvale, CA 94089 USA 
 Attn: Chief Financial Officer 
 Attn: General Counsel 
  
 with a copy to: 
  
 Gunderson Dettmer
Stough Villeneuve 
 Franklin & Hachigian, LLP 
 155 Constitution Drive 
 Menlo Park, California 94025 
 Attn: Brooks Stough 
  
 26.3 Language. This Agreement is in the English language only, which
language shall be controlling in all respects, and all versions hereof in any other language shall be for accommodation only and shall not be binding upon the Parties. All communications and notices to be made or given pursuant to this Agreement
shall be in the English language. 
  
 26.4 Severability. If
any provision in this Agreement shall be found or be held to be invalid or unenforceable (including, without limitation, as a result of objections by the Japanese Fair Trade Commission) then the meaning of said provision shall be construed, to the
extent feasible, so as to render the provision enforceable, and if no feasible interpretation would save such provision, it shall be severed from the remainder of this Agreement which shall remain in full force and effect unless the severed
provision is essential and material to the rights or benefits received by any Party. In such event, the Parties shall use commercially reasonable efforts to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which
most nearly affects the Parties’ intent in entering into this Agreement. 
  
 26.5 References; Subject Headings. Unless otherwise indicated, references to Sections and Exhibits herein are to Sections of, and Exhibits to, this Agreement. The subject headings of the Sections of this
Agreement are included for the purpose of convenience of reference only, and shall not affect the construction or interpretation of any of its provisions. 
  
 26.6 Further Assurances. The Parties shall each perform such acts, execute and deliver such instruments and documents, and do all such other things
as may be reasonably necessary to accomplish the transactions contemplated in this Agreement. 
  
 26.7 Expenses. Each of the Parties will bear its own costs and expenses, including, without limitation, fees and expenses of legal counsel, accountants, brokers, consultants and other representatives used or
hired in connection with the negotiation and preparation of this Agreement and consummation of the transactions contemplated hereby. 
  
 26.8 No Waiver. No waiver of any term or condition of this Agreement shall be valid or binding on a Party unless the same shall have been set forth
in a written document, specifically referring to this Agreement and duly signed by the waiving Party. The 
  

 22 

 failure of a Party to enforce at any time any of the provisions of this Agreement, or the failure to require at any time
performance by the other Party of any of the provisions of this Agreement, shall in no way be construed to be a present or future waiver of such provisions, nor in any way affect the ability of a Party to enforce each and every such provision
thereafter. 
  
 26.9 Entire Agreement; Amendments. The
terms and conditions contained in this Agreement (including the Exhibits hereto) and the other Transaction Agreements constitute the entire agreement between the Parties and supersede all previous agreements and understandings, except for the Ariba
Non-Disclosure Agreement, whether oral or written, between the Parties with respect to the subject matter hereof. No agreement or understanding amending this Agreement shall be binding upon any Party unless set forth in a written document in English
which expressly refers to this Agreement and which is signed and delivered by duly authorized representatives of each Party. 
  
 26.10 Assignment. No Party shall assign this Agreement (or any right or obligation hereunder) without the other Parties’ prior written
consent, except that (i) Ariba may assign this Agreement to a Person into which it has merged or which has otherwise succeeded to all or substantially all of Ariba’s business or assets and (ii) SOFTBANK Parent and SOFTBANK may assign this
Agreement to a Person that is a wholly owned subsidiary of SOFTBANK Parent or SOFTBANK, respectively, or a Person who has succeeded to all or substantially all of the business or assets of SOFTBANK Parent and SOFTBANK, respectively. All assignees
under this Section 26.10 must assume in writing or by operation of law, the assigning Party’s obligations under this Agreement, provided, however, that the assigning Party shall remain liable for the assignee’s performance of its
obligations hereunder. This Agreement shall inure to the benefit of, and shall be binding upon, the Parties and their respective permitted successors and assigns. 
  
 26.11 No Agency. The Parties are independent contractors. Nothing contained herein or done in pursuance of this
Agreement shall constitute any Party the agent of any other Party for any purpose or in any sense whatsoever. 
  
 26.12 No Beneficiaries. Nothing herein express or implied, is intended to or shall be construed to confer upon or give to any person, firm,
corporation or legal entity, other than the Parties, any interests, rights, remedies or other benefits with respect to or in connection with any agreement or provision contained herein or contemplated hereby. 
  
 26.13 Counterparts. This Agreement may be executed in any number of
counterparts, and each counterpart shall constitute an original instrument, but all such separate counterparts shall constitute only one and the same instrument. 
  

 23 

 IN WITNESS WHEREOF, the Parties have caused their respective duly authorized representatives to execute
this Agreement as of the date hereof. 
  

			
	SOFTBANK CORP.
		
	By:	 	 
	 	 	

		
	Title:	 	 
	 	 	

  

			
	SOFTBANK EC HOLDINGS CORP.
		
	By:	 	 
	 	 	

		
	Title:	 	 
	 	 	

  

			
	ARIBA, INC.
		
	By:	 	 
	 	 	

		
	Title:	 	 
	 	 	

  

			
	NIHON ARIBA K.K.
		
	By:	 	 
	 	 	

		
	Title:	 	 
	 	 	

 Exhibit 1.27 
  
 Distribution Agreement 

 Exhibit 4(d) 
  
 ACTIONS REQUIRING THE APPROVAL OF SOFTBANK 
 DIRECTOR PURSUANT TO SECTION 4(d) 
  
 Each of the following acts
will require the approval of SOFTBANK or SOFTBANK Parent, to be obtained from one of the Directors appointed by either SOFTBANK or SOFTBANK Parent: 
  

	(1)	Any material change to the nature or scope of the Business. 

  

	(2)	Any amendment or other change to the Articles that would change the number of directors constituting the Board. 

  

	(3)	Except as contemplated by the Transaction Agreements, any declaration or payment of a cash dividend or other distribution with respect to securities (or any non pro-rata repurchase
of securities from Ariba, SOFTBANK or SOFTBANK Parent). 

  

	(4)	Except as contemplated by the Transaction Agreements, approve any material agreement or transaction between the Company or any of its subsidiaries, on the one hand, and Ariba or any
of its Affiliates, on the other hand (a “Related Party Transaction”). For purposes of this section, Related Party Transaction shall consist of (1) any sale by the Company of Securities to Ariba or any entity in which Ariba holds an
equity interest of ten percent (10%) or more not offered to SOFTBANK Parent, SOFTBANK, or their permitted transferees on a pro rata basis and (2) any material agreement or amendment of existing agreement, between the Company and Ariba or an
Affiliate of Ariba. 

 Exhibit 21(b) 
  
 ACTIONS REQUIRING THE APPROVAL OF AN ARIBA 
 DIRECTOR PURSUANT TO SECTION 21(b) 
  
 Each of the following acts
will require the approval of Ariba, to be obtained from one of the Directors appointed by Ariba (other than pursuant to Section 21(a)): 
  

	(1)	Any material change to the nature or scope of the Business. 

  

	(2)	Any amendment or other change to the Articles that would (i) change the number of directors constituting the Board or (ii) alter or change the rights, privileges, or preferences of
the existing capital stock of the Company so as to affect adversely the existing capital stock. 

  

	(3)	Except as expressly contemplated by the Transaction Agreements, any declaration or payment of a cash dividend or other distribution with respect to Securities (or any repurchase of
Securities from Ariba, SOFTBANK or SOFTBANK Parent). 

  

	(4)	Any sale, conveyance, or other disposal of all or substantially all of the Company’s property or business or any merger into or consolidation with any other entity (other than
a wholly owned subsidiary corporation) or effect any transaction or series of related transactions in which more than fifty percent (50%) of the voting power of the Company is disposed of; 

  

	(5)	Any issuance of Securities, other than shares of Common Stock representing not more than ten percent (10%) of the then outstanding Fully Diluted Securities;

  

	(6)	Any license or transfer any intellectual property of the Company except pursuant to non-exclusive agreements in the ordinary course of business. 

  

	(7)	Except as contemplated by the Transaction Agreements, any material agreement or transaction between the Company or any of its subsidiaries, on the one hand, and SOFTBANK, SOFTBANK
Parent or any of their respective Affiliates, on the other hand (a “Related Party Transaction”). For purposes of this section, Related Party Transaction shall consist of (1) any sale by the Company of Securities to SOFTBANK,
SOFTBANK Parent or any entity in which SOFTBANK, SOFTBANK Parent holds an equity interest of ten percent (10%) or more and (2) any material agreement or amendment of existing agreement, between the Company and SOFTBANK, SOFTBANK Parent or any of
their respective Affiliates. 

 Schedule 15 
  
 Ariba’s Listed Competitors 
  
 American Software 
 Aspect Development 
 BizBots 
 BroadVision 
 Captura 
 Clarus 
 Commerce One 
 CommerceWave 
 Concur Technologies, Inc. 
 Connect 
 Dynamic Web 
 Elcom 
 Elekom 
 Extensity 
 Extricity 
 FairMarket 
 FreeMarkets 
 Fisher Scientific 
 GEIS 
 Greentree 
 Harbinger 
 i2 
 IBM 
 ICG 
 Infobank 
 Internet
Factory 
 Intelisys 
 Ironside

 IPlanet 
 Microsoft 

Moai Technologies 
 OpenSite 
 Oracle 
 Pandesic 
 PeopleSoft 
 PurchasePro 
 Premenos 
 Remedy 
 RightWorks 
 SAP AG 
 SourceSys 
 Sterling Commerce 
 Signal Internet 
 Spaceworks 
 Trilogy 
 Ventro 
 Verticalnet 
 bex.com 
 iadaptaLettter Agreement

 EXHIBIT 10.22 
  
 October 20, 2001 
  
 Dear Larry: 
  
 This letter (the “Agreement”) is to confirm the agreement between you and Ariba, Inc. (“Ariba” or the “Company”) regarding the termination of your employment with the Company. 

 

	 	1.	Your employment with the Company terminated on July 18, 2001 (“Termination Date”). Although you are not otherwise entitled to receive any severance pay from the Company,
the Company will provide you with the following severance benefits: (a) a lump sum cash severance payment of $2,005,575.00; (b) if you elect to continue your health insurance coverage under COBRA, the Company will directly pay the COBRA premiums to
the insurance carrier to continue the medical benefits for you and your eligible dependents through and until the earlier of February 1, 2003 or the date that you are eligible to receive medical insurance benefits from another employer; and (c)
2,000,000 shares of Ariba’s common stock as set forth in paragraph 5 below. You will receive the cash severance payment and the shares eight days after you sign this Agreement (“Effective Date”) or, if later, when you have made
arrangements satisfactory to the Company for satisfying all applicable withholding tax obligations. The Company anticipates that the entire cash severance payment will be applied to pay withholding taxes required with respect to the cash severance
payment and the shares. The Company also anticipates that you will be required to make a cash payment to the Company to satisfy additional withholding tax obligations with respect to the shares. 

  

	 	2.	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 Agreement. 

  

	 	3.	The Company will reimburse you $47,079.55 for all past business expenses incurred by you on behalf of the Company. In addition, the Company agrees that in accordance with any
written agreement between you and the Company it shall reimburse you for any reasonable tax preparation expenses incurred by you for 1999 and 2000, provided you submit all necessary documents regarding such expenses directly to [*] within thirty
(30) days of the date of this Agreement for his sole review and approval. 

  

	*	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. 

  

	 	4.	Effective one (1) day immediately following the Effective Date you hereby resign as a member of the Company’s Board of Directors and as a member of the Board of Directors of
Ariba Nihon K.K., Ariba Korea Limited and all other boards with which you served as a member as a result of your prior affiliation with the Company. 

  

	 	5.	Upon the Effective Date or, if later, when you have made arrangements satisfactory to the Company for satisfying all applicable withholding tax obligations, you will receive
2,000,000 shares of Ariba’s common stock (the “Shares”) under Ariba’s 1999 Equity Incentive Plan. The Shares are fully vested. The Shares are registered with the Securities and Exchange Commission on Form S-8 and are eligible for
resale at any time (subject to the rules that apply to all sales by members of the Board of Directors, former executive officers and persons who possess material non-public information about Ariba). You acknowledge that the restricted stock awarded
to you on April 20, 2001 expired unvested. You agree that you were granted the following options and that all of such options are hereby cancelled: 

  

						
	 Grant Date

	  	Number of
Shares

	  	Exercise
Price

	 9/20/99
	  	11,888	  	$	33.625
	 9/20/99
	  	1,988,112	  	 	33.625
	 4/17/00
	  	1,840	  	 	54.4375
	 4/17/00
	  	398,160	  	 	54.4375
	 7/11/00
	  	1,000,000	  	 	91.125
	 4/4/01
	  	1,675,000	  	 	4.8125
	 4/4/01
	  	19,048	  	 	4.8125
	 4/4/01
	  	3,305,952	  	 	4.8125

  

	 	6.	In consideration for receiving the severance payment and benefits described in paragraph 1 above, including the shares of Ariba’s common stock described in paragraph 5 above,
and the release of claims provided in paragraph 8 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
(whether or not wholly owned), officers, directors, agents, employees and assigns (together called “the Releasees”), with respect to any matter (without limitation) arising out of or connected in any way with your employment with the
Company or the termination of that employment, including without limitation, claims of wrongful discharge, constructive discharge, emotional distress, defamation, invasion of privacy, 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, the 

  

 2 

 Americans with Disabilities Act, and all other laws and regulations relating to employment. 

 

	 	7.	You understand and agree that there exists a good faith dispute between you and Ariba regarding alleged non-payment of wages. You further understand and agree that in settlement of
this good faith dispute, Ariba will provide a payment to you equal to $116,300.67, less all applicable withholdings. In consideration of this payment to be paid to you by Ariba, you hereby fully and forever release and discharge Ariba from all
claims and causes of action arising out of or relating in any way to any dispute regarding your compensation at Ariba, including, but not limited to, salary, bonuses or vacation time. 

  

	 	8.	In consideration for the release of claims provided in paragraph 6 above, 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 related to your employment with the Company or the termination of that employment, including without limitation, defamation, fraud, breach of contract, or breach of the covenant of good faith and
fair dealing. 

  

	 	9.	Any controversy involving the construction or application of any terms, covenants or conditions of this Agreement, or any claims arising out of any alleged breach of this Agreement,
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 or paragraphs 15 or 16 herein shall not be submitted to arbitration and instead the Company may seek all legal and equitable remedies, including without limitation, injunctive relief. 

  

	 	10.	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.” 

  

	 	11.	Your participation in the Company’s Employee Stock Purchase Plan ended as of your Termination Date. Any payroll deductions accumulated but not used to purchase shares as of
your last day worked have been refunded to you. You acknowledge that you have no other stock rights in the Company, or any parent or subsidiary (whether or not wholly owned), including options or other rights to acquire shares of the Company’s
common stock or other equity securities of the Company or any such parent or subsidiary, other than those rights enumerated in this paragraph and in paragraph 5. 

  

 3 

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

  

	 	13.	You represent and warrant that since your Termination Date you: (a) have returned to the Company all Company property, including, but not limited to, your Company-issued laptop
computer, including all files stored on such computer, any papers, files, documents, equipment, keys, access cards, identification, software or disks (provided, however, that you may retain in your possession the desktop computer, printer and
facsimile machine previously provided to you by the Company); (b) have not made and/or retained copies of any Company property, including, but not limited to the foregoing; and (c) have not disclosed to any third-party any Company confidential or
proprietary information. 

  

	 	14.	At all times in the future, you will remain bound by the Company’s Proprietary Information and Invention Agreement (“PIIA”) signed by you, a copy of which is attached
as Exhibit A hereto. 

  

	 	15.	During the period commencing on the Termination Date and continuing for a period of six (6) months thereafter, 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. 

  

	 	16.	You understand and agree that as a result of your position as the Company’s chief executive officer you had unique access to the Company’s confidential and proprietary
information. You further understand and agree that in order to protect the Company’s confidential and proprietary information, it is necessary that you enter into this agreement not to compete. 

  

	 	a.	You agree that during the period commencing on the Termination Date and continuing until the first anniversary of the Termination Date you 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. You and the Company agree that this provision is reasonably enforced 

  

 4 

 with reference to any geographic area in which the Company maintains any such relationship and further
that the Company’s Market is global in scope. 
  

	 	b.	For purposes of this paragraph 16, the Company’s “Market” shall mean (i) all companies that derive their revenue primarily from e-procurement software sales or sales
of software or services aiding companies in sourcing activities; and (ii) those companies set forth on Exhibit B hereto. 

  

	 	c.	You understand and agree that: (i) the remedy at law for any breach of paragraph 16 of this Agreement is and will be inadequate, and in the event of a breach or threatened breach by
you of the provisions of paragraph 16 of this Agreement, the Company shall be entitled to seek an injunction restraining you from the conduct which would constitute a breach of this Agreement. Nothing herein shall be construed as prohibiting the
(iii) Company from pursuing any other remedies available to it for such breach or threatened breach including, without limitation, the recovery of damages from you; and (ii) in the event of a breach by you of the provisions of paragraph 16 of this
Agreement, in addition to any other remedies that would be otherwise available to the Company, the Company will be entitled to and you would be obligated to immediately provide to the Company (A) the proceeds from your sale of the Shares or (B) in
the event that you had not sold the Shares at the time of such breach, the Shares. 

  

	 	d.	You and the Company expressly agree that the character, duration and geographical scope of this paragraph 16 are reasonable. However, should a determination nonetheless be made by a
court of competent jurisdiction that the character, duration or geographical scope of this paragraph 16 is unenforceable pursuant to applicable law, then it is your intention and you agree that this paragraph 16 shall be modified by the court to the
minimum extent necessary to render the provisions of this paragraph 16 enforceable pursuant to applicable law. 

  

	 	17.	You agree that at all times in the future, you will not make any derogatory remarks regarding the Company, any of its subsidiaries (whether or not wholly owned) or any of its or
their current or former officers, directors, products or business practices. You also agree to take any action reasonably requested by [*] or his successor in connection with the termination of your employment with the Company and its subsidiaries
(whether or not wholly owned), including signing any formal resignations and reviewing and executing written consents of boards of directors regarding any matters that occurred on or before your Termination Date. 

  

	*	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. 

  

 5 

	 	18.	You agree that you will not initiate, maintain or accept the benefits from any legal action or proceeding of any kind against any of the Releasees as to any matter released in this
Agreement. 

  
 You shall make all reasonable and
diligent efforts to cooperate with Ariba and its counsel regarding any litigation or investigation by any state, federal, foreign or private person or entity, directly or indirectly arising from or relating to any transaction, event or activity that
occurred during your employment with Ariba, asserted against any of the Releasees. Such cooperation shall include all reasonable assistance that Ariba determines is necessary, including, but not limited to, meeting or consulting with Ariba and its
counsel and their designees, reviewing documents, analyzing facts and appearing or testifying as a witness or interviewee or otherwise. You further agree that commencing on the Effective Date and continuing through and until April 20, 2002, you will
make yourself available to Ariba and its counsel for up to [*] per month. You and Ariba agree that if at any time between April 21, 2002 and October 20, 2002 Ariba or its legal counsel request your assistance for more than [*] in any month, Ariba
shall reimburse you at the rate of [*] per hour for any assistance you directly provide to Ariba or its counsel in excess of [*] in any month during that period. 
  
 In connection with such cooperation, except as otherwise required by law, judicial order, or other lawful process, you will
not cooperate or communicate in any way with any other party or witness or their counsel or designees, including, but not limited to, [*], without the express prior written consent of Ariba; provided, however, that you may communicate with [*]
regarding any matters not related to Releasees (this prohibition includes, but is not limited to, any matters related to the employment or termination of employment of [*], you or any other employee from Ariba). Requests for such written consent
shall be directed to [*] or his successor. You further agree that you will advise [*], or his successor, as soon as practicable but in any event within five (5) business days if you are contacted by any person, firm, corporation, association or
other entity in connection with any pending or threatened claim against any of the Releasees. Upon receiving such a request, Ariba will respond as soon as practicable but in any event within five (5) business days by either granting or denying such
consent or by stating that it is not in a position to take such action due to the temporary unavailability of certain individuals at Ariba. 
  
 Nothing in this paragraph 18 is intended to prevent you from complying with the compulsory process of any court or agency or from providing truthful and
accurate testimony in any proceeding in which you do testify. 
  

	 	19.	All compensation paid under this Agreement is subject to reduction to reflect applicable withholding and payroll taxes. 

  

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

  

 6 

	 	20.	You agree that you will not disclose to others the fact or terms of this Agreement, except that you may disclose such information to your attorney, accountant, stock broker or tax
advisor in order for such individuals to render services to you; provided that you inform any such individual that he or she may not disclose such information to any other party. 

  

	 	21.	You agree that except as expressly provided in this Agreement and the PIIA, this Agreement renders null and void any and all prior agreements between you and the Company. You and
the Company agree that this Agreement and the PIIA constitute the entire agreement between you and the Company regarding the subject matter therein, and that this Agreement may be modified only in a written document signed by you and a duly
authorized officer of the Company. 

  

	 	22.	This Agreement shall be construed and interpreted in accordance with the laws of the State of Colorado, without regard to principles of conflicts or choice of laws.

  

	 	23.	You agree that this Agreement may be executed in counterparts, each of which shall be an original, but all of which together shall constitute one agreement. Execution of a facsimile
copy shall have the same force and effect as execution of an original, and a facsimile signature shall be deemed an original and valid signature. 

  

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

  

	 	25.	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 this Agreement shall not
become effective or enforceable until the eighth day after the date you sign this Agreement. 

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

 7 

	
	Sincerely,
	
	/s/    NANCY KATO
	

	 Nancy Kato
 Senior Vice President, Human
Resources

  
 My agreement
with the above terms is signified by my signature below. Furthermore, I acknowledge that I have read and understand this Agreement 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 Agreement. 
  

									
					
	Signed:	 	/s/    LARRY MUELLER	 	 	 	Dated:	 	October 20, 2001
	 	 	
	 	 	 	 	 	

	 	 	Larry Mueller	 	 	 	 	 	 

  

 8 

 Exhibit A 
  

 9 

 Ariba, Inc. 
  
 PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT 
  
 The following Proprietary Information and Inventions Agreement (“Agreement”) confirms an understanding between me
(Lawrence A. Mueller), and Ariba, Inc., a Delaware corporation (the “Company”), which is a material part of the consideration for my employment by the Company: 
  
 1. The Company shall own all right, title and interest (including patent rights, copyrights, trade secret rights, mask work rights and other
rights throughout the world) in any inventions, works of authorship, mask works, ideas or information made or conceived or reduced to practice, in whole or in part, by me during the term of my employment with the Company to and only to the fullest
extent allowed by California Labor Code Section 2870 (which is attached as Appendix A) (collectively “Inventions”) and I will promptly disclose all Inventions to the Company. I will also disclose anything I believe is excluded by Section
2870 so that the Company can make an independent assessment. I hereby make all assignments necessary to accomplish the foregoing. I shall further assist the Company, at the Company’s expense, to further evidence, record and perfect such
assignments, and to perfect, obtain, maintain, enforce, and defend any rights specified to be so owned or assigned. I hereby irrevocably designate and appoint the Company and its agents and attorneys-in-fact to act for and in my behalf to execute
and file any document and to do all other lawfully permitted acts to further the purposes of the foregoing with the same legal force and effect as if executed by me. If I wish to clarify that something created by me prior to my employment that
relates to the Company’s actual or proposed business is not within the scope of this Agreement, I have listed it on Appendix B. 
  
 2. To the extent allowed by law, paragraph 1 includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred
to as “moral rights” (collectively, “Moral Rights”). To the extent I retain any such Moral Rights under applicable law, I hereby waive such Moral Rights and consent to any action consistent with the terms of this Agreement with
respect to such Moral Rights. I will confirm any such waivers and consents from time to time as requested by the Company. 
  
 3. I agree that all Inventions and all other business, technical and financial information I develop, learn or obtain during the term of my employment that relates to the
Company or the business or demonstrably anticipated business of the Company or that are received by or for the Company in confidence, constitute “Proprietary Information.” I will hold in confidence and not disclose or, except within the
scope of my employment, use any Proprietary Information. However, I shall not be obligated under this paragraph with respect to information I can document is or becomes readily publicly available without restriction through no fault of mine. Upon
termination of my employment, I will promptly return to the Company all items containing or embodying Proprietary Information (including all copies), except that I may keep my personal copies of (i) my compensation records, (ii) materials
distributed to stockholders generally and (iii) this Agreement. 
  
 4. During the
period of my employment with the Company and for one year thereafter, I will not encourage or solicit any employee or consultant of the Company to leave it for any reason (except for the bona fide firing of the Company personnel within the scope of
my employment). 
  

 5. I agree that during the term of my employment with the Company (whether or not during business hours), I will not
engage in any activity that is in any way competitive with the business or demonstrably anticipated business of the Company, and I will not assist any other person or organization in competing or in preparing to compete with any business or
demonstrably anticipated business of the Company. 
  
 6. I have not entered into,
and I agree I will not enter into, any agreement either written or oral in conflict with this Agreement or my employment with the Company. I will not violate any agreement with or rights of any third party or, except as expressly authorized by the
Company in writing, use or disclose my own or any third party’s confidential information or intellectual property when acting within the scope of my employment or otherwise on behalf of the Company. 
  
 7. I agree that this Agreement is not an employment contract for any particular term and that
I have the right to resign and the Company has the right to terminate my employment at will, at any time, for any or no reason, with or without cause. In addition, this Agreement does not purport to set forth all of the terms and conditions of my
employment, and, as an employee of the Company, I have obligations to the Company which are not set forth in this Agreement. However, the terms of this Agreement govern over any inconsistent terms and can only be changed by a subsequent written
agreement signed by the President of the Company. 
  
 8. I agree that my
obligations under paragraphs 1, 2, 3 and 4 of this Agreement shall continue in effect after termination of my employment, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary on my part, and
that the Company is entitled to communicate my obligations under this Agreement to any future employer or potential employer of mine. My obligations under paragraphs 1, 2 and 3 also shall be binding upon my heirs, executors, assigns, and
administrators and shall inure to the benefit of the Company, its subsidiaries, successors and assigns. 
  
 9. Any dispute in the meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State of California without regard to the conflict of laws provisions thereof. I further agree
that if one or more provisions of this Agreement are held to be illegal or unenforceable under applicable California law, such illegal or unenforceable portion(s) shall be limited or excluded from this Agreement to the minimum extent required so
that this Agreement shall otherwise remain in full force and effect and enforceable in accordance with its terms. 
  

 Page 2 

 I HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT
RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAT ONE COUNTERPART WILL BE RETAINED BY THE COMPANY AND THE
OTHER COUNTERPART WILL BE RETAINED BY ME. 
  

	
	EMPLOYEE:
	
	/s/    LAWRENCE A. MUELLER
	

	Lawrence A. Mueller
	
	 
	

	Date

  

			
	 Accepted and Agreed to:
  
 ARIBA, INC.

		
	By:	 	/s/    KEITH KRACH
	 	 	

	 	 	Keith Krach

  

 Page 3 

 APPENDIX A 
  

Section 2870. Application of provision providing that employee shall assign or offer to assign rights in invention to employer. 
  
 A. Any provision in an employment agreement which provides that an employee shall assign, or
offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an Invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade
secret information except for those inventions that either: 
  
 1. Relate at the
time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or 
  
 2. Result from any work performed by the employee for his employer. 
  
 B. To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being
required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable. 
  

 Page 4 

 APPENDIX B 
  

PRIOR MATTER RELATED TO THE COMPANY’S ACTUAL OR 
 PROPOSED BUSINESS 
  
  
  

  

  

  

  

  

  

  

  

  

  

  

  

 Page 5 

 Exhibit B 
  
 [*] 
  

	*	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. 

  

 10

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