EXHIBIT 10.22

LOAN MODIFICATION AGREEMENT

     This Loan Modification Agreement (the “Modification”) is entered into as of
October 25, 2004, by and between Plumtree Software, Inc., a Delaware corporation
(the “Borrower”), and Silicon Valley Bank, a California — chartered bank
(“Bank”).

1. DESCRIPTION OF EXISTING OBLIGATIONS: Among other obligations which may be
owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among other
documents, a Loan and Security Agreement, dated on or about March 14, 2001 (as
may be amended, restated, supplemented or otherwise modified from time to time,
the “Loan Agreement”). The Loan Agreement provided for, among other things, a
Committed Revolving Line in the original principal amount of $7,500,000 (such
amount has been subsequently revised to various amounts by Loan Modification
Agreements of various dates and was most recently increased to $3,509,000 by a
Loan Modification Agreement dated as of March 18, 2004). Capitalized terms used
but not otherwise defined herein shall have the same meanings as in the Loan
Agreement; provided, that hereinafter all indebtedness owing by Borrower to Bank
shall be referred to as the “Indebtedness.”

2. DESCRIPTION OF COLLATERAL AND GUARANTIES. Repayment of the Indebtedness is
secured by the Collateral as described in the Loan Agreement. Hereinafter, all
other documents securing repayment of the Indebtedness shall be referred to as
the “Security Documents” and the Security Documents, together with all other
documents evidencing the Indebtedness shall be referred to as the “Existing Loan
Documents”.

3. DESCRIPTION OF CHANGE IN TERMS OF EXISTING LOAN DOCUMENTS.

3.1   Letters of Credit Sublimit. Section 2.1.2 of the Loan Agreement is hereby
amended by replacing the amount “$3,209,000” set forth in the first sentence
therein with the amount “$4,000,000”.   3.2   Cash Management Services Sublimit.
Section 2.1.4 of the Loan Agreement is hereby amended by replacing the amount
“$3,209,000” set forth in the first sentence therein with the amount “$500,000”.
  3.3   Financial Covenants. Section 6.7 of the Loan Agreement is hereby amended
in its entirety to read as follows:

6.7 Financial Covenants.

Borrower shall maintain at all times:

(i) Quick Ratio (Adjusted). As of the last day of each month (“Date of
Determination”), a ratio of Quick Assets to Current Liabilities plus all

 

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Indebtedness (including all outstanding Letters of Credit) minus Deferred
Revenue of at least 3.00:1.00.

(ii) Tangible Net Worth. As of the Date of Determination, Tangible Net Worth of
at least $40,000,000.

3.4   Definitions. The following defined terms under Section 13.1 of the Loan
Agreement are each hereby amended to read as follows:

“Committed Revolving Line” is aggregate Advances of up to $4,000,000.

“Revolving Maturity Date” is October 24, 2005.

3.5   Amended Exhibit D. Exhibit D to the Loan Agreement is hereby amended to
read in full as attached hereto as Attachment No. 1.

4. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever
necessary to reflect the changes described above.

5. PAYMENT OF LOAN FEE. Borrower shall pay, on or prior to the date hereof, a
$5,000 nonrefundable loan fee.

6. NO DEFENSES OF BORROWER. Borrower agrees that, as of the date hereof, it has
no defenses against its obligations to pay all of the Indebtedness.

7. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the
Existing Loan Documents, Bank is relying upon Borrower’s representations,
warranties, and agreements, as set forth in the Existing Loan Documents. Except
as expressly modified pursuant to this Modification, the terms of the Existing
Loan Documents remain unchanged and in full force and effect. Bank’s agreement
to modify the Existing Loan Documents pursuant to this Modification in no way
shall obligate Bank to make any future modifications to the Existing Loan
Documents. Nothing in this Modification shall constitute a satisfaction of the
Indebtedness. It is the intention of Bank and Borrower to retain as liable
parties all makers and endorsers of the Existing Loan Documents unless the party
is expressly released by Bank in writing, and no maker, endorser or guarantor
will be released by virtue of this Modification.

8. CONDITIONS. The effectiveness of this Modification is conditioned upon (i)
payment of all reasonable Bank Expenses relating to this Modification, (ii)
payment of the loan fee as set forth under Section 5 hereof, and (iii) execution
and delivery to Bank of a fully executed copy of this Modification.

[Execution Page Follows Immediately]

 

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IN WITNESS WHEREOF, each of the parties hereto has caused this Modification to
be executed and delivered by its duly authorized representative as of the date
first written above.

BORROWER:

PLUMTREE SOFTWARE, INC.,
a Delaware corporation

By: /s/ Eric Borrman 

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Name: Eric Borrman   

Title: Chief Financial Officer

 

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ATTACHMENT NO. 1
REVISED FORM OF
EXHIBIT D
COMPLIANCE CERTIFICATE

     
TO:
  SILICON VALLEY BANK, INC.
FROM:
  PLUMTREE SOFTWARE, INC.
DATED:
                                        

     The undersigned authorized officer (the “Officer”) of Plumtree Software,
Inc. (“Borrower”) certifies that, under the terms and conditions of the Loan and
Security Agreement dated as of March 14, 2001 between Borrower and Bank (as
amended from time to time, the “Agreement”): (i) Borrower is in complete
compliance for the period ending on the date first set forth above with all
required covenants except as noted below and (ii) all representations and
warranties in the Agreement are true and correct in all material respects on
this date. In addition, the Officer certifies that Borrower and each Subsidiary
(a) has timely filed all required tax returns and paid, or made adequate
provision to pay, all material taxes, except those being contested in good faith
with adequate reserves under Generally Accepted Accounting Principles (GAAP) and
(b) does not have any legal actions pending or threatened against Borrower or
any Subsidiary which Borrower has not previously notified in writing to Bank.
Attached are the required documents supporting the certification. The Officer
certifies that these are prepared in accordance with GAAP consistently applied
from one period to the next except as explained in an accompanying letter or
footnotes. The Officer acknowledges that no borrowings may be requested at any
time or date of determination that Borrower is not in compliance with any of the
terms of the Agreement, and that compliance is determined not just at the date
this certificate is delivered.

Please indicate compliance status by circling Yes/No under “Complies” column.

          Reporting Covenants

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  Required

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  Complies

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1. Interim financial statements + CC
  Monthly within 30 days   Yes      No
2. Annual audited financial statements
  Within 120 days of FYE   Yes      No

                  Financial Covenants

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  Required

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  Actual

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  Complies

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1. Minimum Adjusted Quick Ratio
    3.00:1.00           Yes      No
2. Minimum Tangible Net Worth
  $ 40,000,000           Yes      No Have there been updates to Borrower’s
intellectual property?   Yes      No

 

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Comments Regarding Exceptions: See Attached.

Sincerely,

Plumtree Softree, Inc.,
a Delaware corporation

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Signature

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Title

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Date

BANK USE ONLY

Received by: 

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AUTHORIZED SIGNER

Date: 

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Verified: 

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AUTHORIZED SIGNER

Date: 

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Compliance Status:        Yes            No