COMMERCE ONE INC / DE/
EX-10.3
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<DESCRIPTION>EX-10.3
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<title>EMPLOYMENT AGREEMENT</title>



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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.3</font></b></p>



<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></u></b></p>



<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">SEVERANCE AGREEMENT</font></u></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This agreement is made between Commerce One

Operations, Inc. (&#147;Commerce One&#148;), a Delaware Corporation, and Charles Boynton

(&#147;Mr. Boynton&#148;).&#160;&#160; In consideration for

Mr. Boynton&#146;s continued employment at Commerce One, the sufficiency of which

both parties expressly acknowledge, Commerce One agrees as follows:&#160; Except in the event of a Change of Control

(as defined in the Change of Control Severance Agreement between Commerce One

and Boynton dated June 5, 2002 (&#147;Change of Control Agreement&#148;)) in which case

the terms of the Change of Control Agreement shall govern, Commerce One shall

pay Mr. Boynton up to six (6) months of salary and health and dental benefits

(to the extent such benefits may be offered during such period under the

applicable plan) at his current salary and benefits-election levels as of the

time of termination, if any of the &#147;Triggering Events&#148; set forth below occur

between July 1, 2002 and June 30, 2003.&#160;

The parties agree and understand that this Agreement will expire on July

1, 2003.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Payments

under this Agreement will be made on a normal payroll cycle on a semi-monthly

basis until the six-month period is completed, or until Mr. Boynton begins new

employment as described below.&#160; To the

extent Mr. Boynton is entitled to separation benefits under WARN or any

comparable state statute, or under the Company&#146;s severance plan as it exists at

the time of the Triggering Events, he will receive those benefits in full.&#160; However, any benefits Mr. Boynton receives

under WARN, or as severance, will count toward the six-month salary

continuation so that the Company&#146;s salary payments to Mr. Boynton will not

exceed a total of six (6) months.&#160; The

Triggering Events are as follows:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Commerce One

terminates Mr. Boynton&#146;s employment due to a Company-initiated reduction in

force; or</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Without good

cause, if: (i) Commerce One terminates Mr. Boynton <i><font style="font-style:italic;">or</font></i> (ii) Commerce One, without Mr. Boynton&#146;s express written

consent, significantly reduc&#173;es his title, duties, authority or responsibilities,

relative to the Employee&#146;s title, duties, authority or responsibilities as in

effect immediately prior to such reduction, or the assignment to Employee of

such reduced title, duties, authority or responsibilities.&#160; For purposes of this agreement, good cause

is defined as (1) a material failure by Mr. Boynton in the performance of his

job duties, which has not been cured after thirty days written notice by

Commerce One; (2) conviction of a felony of any type; (3) theft,

misappropriation, or embezzlement; (4) self-dealing, breach of fiduciary duty,

breach of confidentiality or breach of any other obligation to Commerce One as

set forth in any Company policy or any written agreement between Commerce One

and Mr. Boynton; (4) illegal use, possession or sale of illegal drugs; (5)

death or a disability that prevents Mr. Boynton from performing any essential

function of his position.;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any payments to be made

under provisions (1) or (2) above shall cease if Mr. Boynton obtains other

full-time employment during the six-month period.&#160; Payments will stop as of the day on which the new employment

begins.&#160; Within three days of accepting

full-time employment during the six-month period, Mr. Boynton shall notify

Commerce One&#146;s Chief Administrative Officer of the acceptance.&#160; The parties expressly agree that failure by

Mr. Boynton to provide such notice will constitute a material breach of this

Agreement.&#160; Notwithstanding the above,

to the extent the Company has a severance plan in effect at the time of the

Triggering Events that allows departing employees at Mr. Boynton&#146;s level to

receive severance payments for some period of time regardless of whether or not

they obtained other employment after separation from the Company (as of the

Effective Date, this period is two months), this Agreement will provide </font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the same benefit to Mr. Boynton.&#160; Similarly, if at the time of the Triggering

Events the Company has a severance plan in effect that would otherwise provide

Mr. Boynton with greater salary or benefits than would this Agreement, Mr.

Boynton will receive the greater salary or benefits provided by that severance

plan instead of those provided by this Agreement.</font></p>



<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This agreement and the

Change of Control Agreement constitute the entire understanding between the

parties with respect to the subject matter hereof and supersede and cancel all

prior or contemporaneous agreements, whether oral or written.&#160; Notwithstanding the foregoing, nothing

herein shall affect the Employee Proprietary Information and Inventions Agreement

dated November 30, 1999 and the Indemnification Agreement dated June 1, 2002

between Mr. Boynton and Company, each of which shall remain in full force and

effect in accordance with their terms.&#160;

All waivers must be in writing, and failure at any time to require the

other party&#146;s performance of any obligation under this Agreement shall not

affect the right to require future performance of that obligation.&#160; This Agreement shall be governed by the laws

of the State of California.&#160; All

disputes arising from this agreement, or relating to this agreement, shall be

subject to the exclusive jurisdiction of the courts in the State of

California.&#160; If any provision of this

Agreement is ruled invalid or unenforceable, such invalidity or

unenforceability will have no effect on the other provisions of this

Agreement.&#160; In its place, a suitable and

equitable provision will be substituted to carry out, so far as may be valid

and enforceable, the intent and purpose of the invalid or unenforceable

provision.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="79%" style="border-collapse:collapse;width:79.92%;">

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  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.1%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated:</font></p>

  </td>

  <td width="30%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:30.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 29, 2002</font></p>

  </td>

  <td width="18%" valign="top" style="padding:0in .7pt 0in .7pt;width:18.02%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:44.34%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Charles Boynton</font></p>

  </td>

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  <td width="37%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:37.64%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="18%" valign="top" style="padding:0in .7pt 0in .7pt;width:18.02%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="44%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:44.34%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charles Boynton</font></p>

  </td>

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  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="18%" valign="top" style="padding:0in .7pt 0in .7pt;width:18.02%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="44%" valign="top" style="padding:0in .7pt 0in .7pt;width:44.34%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <td width="7%" valign="top" style="padding:0in .7pt 0in .7pt;width:7.1%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated:</font></p>

  </td>

  <td width="30%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:30.56%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 29, 2002</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:44.34%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Diana Jacobs</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="18%" valign="top" style="padding:0in .7pt 0in .7pt;width:18.02%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="44%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:44.34%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Diana Jacobs,</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Administrative

  Officer</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For Commerce One

  Operations, Inc.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





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