Security Agreement, dated Oct. 24, 2002



 EXHIBIT 10.2 
  
 SAGENT TECHNOLOGY, INC. 
  
 SECURITY AGREEMENT 
  
 This SECURITY AGREEMENT dated as of October 24, 2002 (as amended, modified or otherwise supplemented from time to time, this
“Security Agreement”) is executed by Sagent Technology, Inc., a Delaware corporation with its principal executive offices at 800 West El Camino Real, Suite 300, Mountain View, California 94040 (“Debtor”), in favor
of CDC Software Corporation, a Cayman Islands corporation with its principal executive offices at 34/F Citicorp Centre, 18 Whitfield Road, Causeway Bay, Hong Kong (“Secured Party”). 
  
 RECITALS 
  
 A. Pursuant to a Note and Warrant Purchase Agreement dated as of the date hereof between Debtor and Secured Party (the “Note Purchase Agreement”), Debtor will issue to Secured Party, on or prior to December
31, 2002, and subject to the terms and conditions set forth in the Note Purchase Agreement, one or more secured promissory note in the aggregate principal amount not to exceed US$7,000,000 (collectively, the “Notes”). 

 
 B. In order to induce Secured Party to extend the credit evidenced by the Notes, Debtor has agreed to enter into this Security
Agreement and to grant to Secured Party the security interest in the Collateral described below, subject to the terms and conditions set forth in this Security Agreement. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in
consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Debtor hereby agrees with Secured Party as follows: 
  

1. Definitions. When used in this Security Agreement, the following terms have the following respective meanings: 
  
 “Accounts” means “accounts” as such term is defined in the UCC. 
  
 “Collateral” has the meaning given to that term in Section 3 hereof. 
  
 “Obligations” means all loans, advances, debts, liabilities and obligations owed by Debtor to Secured Party pursuant to
the terms of the Notes and the other Transaction Documents, including, all interest, fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by Debtor thereunder, in each case, whether
direct or indirect, absolute or contingent, due or to become due, and whether or not arising after the commencement of a proceeding under Title 11 of the United States Code (11 U.S.C. Section 101 et seq.), as amended 







  
 from time to time (including post-petition interest) and whether or not allowed or allowable as a claim
in any such proceeding. 
  
 “UCC” means the Uniform Commercial Code as in effect in the State of
California and State of Delaware from time to time, as applicable. 
  
 All capitalized terms not otherwise defined
herein shall have the respective meanings given in the Notes. Unless otherwise defined herein, all terms defined in the UCC have the respective meanings given to those terms in the UCC. 
  
 2. Term and Termination. 
  
 (a)
Term. The term of this Security Agreement shall begin on the date stated above and shall continue and be binding upon Debtor until all the Obligations have been indefeasibly fully paid and satisfied in accordance with the terms hereof and of
the Notes. 
  
 (b) Termination Statement. Upon payment in full of the Obligations, Secured Party shall, upon
request, deliver to Debtor a termination statement releasing the Collateral from the liens created by this Agreement and do all further acts and execute and deliver all instruments and documents necessary to terminate the security interests granted
herein. 
  
 3. Grant of Security Interest. Subject to the terms and conditions of this Security Agreement, as
security for the Obligations, Debtor pledges to Secured Party and grants to Secured Party a security interest in all right, title and interests of Debtor in and to the property described in Attachment 1 hereto, whether now existing or
hereafter from time to time acquired (collectively, the “Collateral”). Notwithstanding the foregoing, the security interest granted herein shall not extend to and the term “Collateral” shall not include any
property, rights or licenses to the extent the granting of a security interest therein (i) would be contrary to applicable law or (ii) is prohibited by or would constitute a default under any agreement or document governing such property, rights or
licenses (but only to the extent such prohibition is enforceable under applicable law). 
  
 4. Representations and
Warranties. Debtor represents and warrants to Secured Party that: 
  
 (a) Debtor is the owner of the Collateral
(or, in the case of after-acquired Collateral, at the time Debtor acquires rights in the Collateral, will be the owner thereof). There are no Liens on any of the Collateral, other than Permitted Liens; 
  
 (b) Upon the filing of UCC-1 financing statements in the appropriate filing offices, Secured Party will have (or in the case of
after-acquired Collateral, at the time Debtor acquires rights therein, will have) a perfected security interest in the Collateral to the extent that a security interest in the Collateral can be perfected by such filing, except for Permitted Liens;
and 
  
 (c) All accounts receivable and payment intangibles are genuine and enforceable against the party obligated
to pay the same. 

 
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 (d) All Collateral consisting of tangible personal property is located at the
Company’s offices listed on Attachment 2, except for Collateral which is mobile by nature. 
  
 5. Covenants
Relating to Collateral. Debtor hereby covenants and agrees: 
  
 (a) To perform all acts that may be necessary
(including such actions as Secured Party may reasonably request) to maintain, preserve, protect and perfect the Collateral, the Lien granted to Secured Party therein and the perfection and priority of such Lien, except for Permitted Liens;

  
 (b) Not to create or suffer to exist any Lien upon any Collateral, except Permitted Liens; 

 
 (c) Not to use or permit any Collateral to be used (i) in violation in any material respect of any applicable law, rule or
regulation, or (ii) in violation of any policy of insurance covering the Collateral; 
  
 (d) To pay promptly when due
all taxes and other governmental charges, all Liens and all other charges now or hereafter imposed upon or affecting any Collateral; 
  
 (e) Without written notice to Secured Party, (i) not to change Debtor’s name, place of business (or, if Debtor has more than one place of business, its chief executive office), location of any material portion of the
Collateral or the office in which Debtor’s records relating to accounts receivable and payment intangibles are kept, (ii) not to change Debtor’s state of incorporation; 
  
 (f) To procure, execute and deliver from time to time any endorsements, assignments, financing statements and other writings reasonably deemed necessary or appropriate by
Secured Party to perfect, maintain and protect its Lien hereunder and the priority thereof; 
  
 (g) Not to surrender
or lose possession of (other than to Secured Party), sell, encumber, lease, rent, or otherwise dispose of or transfer any Collateral or right or interest therein, and to keep the Collateral free of all Liens except Permitted Liens; provided
that Debtor may sell, lease, transfer, license or otherwise dispose of any of the Collateral in the ordinary course of business consisting of (i) the sale of inventory, (ii) sales of worn-out or obsolete equipment, and (iii) non-exclusive
licenses and similar arrangements for the use of the property of Debtor; 
  
 (h) To collect, enforce and receive
delivery of the accounts receivable and payment intangibles in accordance with past practice until otherwise notified by Secured Party; 
  
 (i) To maintain, at its expense, insurance policies insuring the Collateral against loss or damage by fire, theft, explosion, sprinklers and all other hazards and risks, such policies to (i) be of a type and in coverage
amounts as are customary to businesses similar to Company’s and (ii) name Secured Party as loss payee thereunder; 

 
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 (j) To comply with all material requirements of law relating to the production,
possession, operation, maintenance and control of the Collateral; and 
  
 (k) To permit Secured Party and its
representatives the right, at any time during normal business hours, upon reasonable prior notice, to visit and inspect the properties of Debtor and its corporate, financial and operating records, and make abstracts therefrom, and to discuss
Debtor’s affairs, finances and accounts with its directors and officers. 
  
 6. Default. 

 
 (a) Default. Debtor shall be deemed in default under this Security Agreement upon the occurrence and during the
continuance of an Event of Default (as defined in the Notes). 
  
 (b) Remedies Upon Default. Upon the
occurrence and during the continuance of any such Event of Default, Secured Party shall have the rights of a secured creditor under the UCC, all rights granted by this Security Agreement and by law, including the right to: 
  
 (i) Settle or adjust disputes and claims directly with account debtors for amounts, upon terms and in whatever order that
the Security Party reasonably considers advisable; 
  
 (ii) Make such payments and do such acts as
Secured Party considers necessary or reasonable to protect its security interest in the Collateral. Debtor agrees to assemble the Collateral if Secured Party so requires, and to make the Collateral available to Secured Party in a mutually convenient
location as Secured Party may designate. Debtor authorizes Secured Party to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest or compromise any
encumbrance, charge or Lien, which in Secured Party’s determination appears to be prior or superior to its security interest and to pay all expenses incurred in connection therewith. With respect to any of the Debtor’s owned or leased
premises, the Debtor hereby grants Secured Party a license to, upon the occurrence and continuance of an Event of Default, enter into possession of such premises and to occupy the same, without charge, in order to exercise any of Secured
Party’s rights or remedies provided herein, at law, in equity or otherwise; 
  
 (iii) Ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale and sell (in the manner provided for herein) the Collateral. Secured Party is hereby granted a license or other right, solely pursuant to the provisions of this
Section 6(b), to use, without charge, the Debtor’s intellectual property, or any property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale and selling any Collateral and, in connection
with Secured Party’s exercise of its rights under this Section 6(b), Debtor’s rights under all licenses and all franchise agreements shall inure to Secured Party’s benefit; 
  
 (iv) Sell the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner
and at such places (including Debtor’s premises) in a commercially reasonable manner, and apply any proceeds to the Obligations in whatever manner or order Secured Party deems appropriate; 

 
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 (v) Credit bid and purchase at any public sale in accordance with
the UCC or comparable law of any jurisdiction; and 
  
 (vi) Notify any Person owing funds to the
Debtor of Secured Party’s security interest in such funds and verify the amount of such Account and Debtor agrees to collect all amounts owing to Debtor for Secured Party, receive in trust all payments as Secured Party’s trustee and
immediately deliver such payments to Secured Party in their original form as received from the account debtor, with proper endorsements for deposit. 
  
 Any deficiency that exists after disposition of the Collateral as provided above will remain due and payable pursuant to the terms of the Notes. 
  

(c) Power of Attorney. Effective only during the existence of an Event of Default, Debtor hereby irrevocably appoints Secured Party (and any of Secured
Party’s designated officers or employees) as Debtor’s true and lawful attorney to: (i) send requests for verification of Accounts or notify account debtors of Secured Party’s security interest in the Accounts; (ii) endorse
Debtor’s name on any checks or other forms of payment or security that may come into Secured Party’s possession; (iii) sign Debtor’s name on any invoice or bill of lading relating to any Account, drafts against account debtors,
schedules and assignments of Accounts, verifications of Accounts and notices to account debtors; (iv) after acceleration of the Obligations, dispose of any Collateral; (v) make, settle and adjust all claims under and decisions with respect to
Debtor’s policies of insurance; (vi) settle and adjust disputes and claims respecting the accounts directly with account debtors, for amounts and upon terms which Secured Party determines to be reasonable; (vii) after acceleration of the
Obligations, to transfer the Intellectual Property into the name of Secured Party or a third party to the extent permitted under the UCC; and (viii) to file, in its sole discretion, one or more financing or continuation statements and amendments
thereto, relative to any of the Collateral; provided that Secured Party may exercise such power of attorney to sign the name of Debtor on any of the documents described in Section 8 of this Security Agreement regardless of whether an Event of
Default has occurred. The appointment of Secured Party as Debtor’s attorney-in-fact, and each and every one of Secured Party’s rights and powers, being coupled with an interest, is irrevocable until all of the Obligations have been fully
satisfied and performed. 
  
 7. Material Adverse Effect. In the event that there shall have occurred any
event, condition or state of facts that could reasonably be expected to have a Material Adverse Effect, then Secured Party shall have the right to take any and all actions as are reasonably necessary to protect Secured Party’s interest in the
Collateral, including the right to: 
  
 (a) Make such payments and do such acts as Secured Party considers necessary
or reasonable to protect its security interest in the Collateral; 
  
 (b) Notify any Person owing funds to the Debtor
of Secured Party’s security interest in such funds and verify the amount of such Account; and Debtor agrees to collect all amounts owing to Debtor for Secured Party, receive in trust all payments as Secured Party’s trustee and immediately
deliver such payments to Secured Party in their original form as received from the account debtor, with proper endorsements for deposit; and 

 
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 (c) Settle or adjust disputes and claims directly with account debtors for
amounts, upon terms and in whatever order that the Security Party reasonably considers advisable. 
  
 8.
Authorization to File; Delivery of Additional Documentation Required. Debtor authorizes Investor to file financing statements without notice to Company, with all appropriate jurisdictions, as Investor deems appropriate, in order to perfect or
protect Investor’s security interest in the Collateral. The Company shall execute and deliver to Investor, at the request of Investor, all documents that Investor may reasonably request, in form satisfactory to Investor, to perfect and continue
perfected Investor’s security interest in the Collateral and in order to fully consummate all of the transactions contemplated under the Transaction Documents. 
  
 9. Miscellaneous. 
  
 (a)
Notices. All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall be in writing and faxed or delivered by courier to each party as follows: 
  
 if to Secured Party, to; 
  
 CDC Software Corporation 
 c/o chinadotcom corporation 
 34/F Citicorp Centre 
 18 Whitfield Road

 Causeway Bay, Hong Kong, PRC 
 Tel: (852) 2893 8200 
 Fax: (852) 2893 5245 
 Attention: Company Secretary 
  
 with a copy to: 

 
 Torys LLP 
 237 Park Avenue 
 New York, NY 
 Tel: (212) 880-6106 
 Fax: (212) 682-0200 
 Attention: V. Carl Walker, Esq. 
  
 or if to Debtor, to;

  
 Sagent Technology, Inc. 
 800 West El Camino Real 
 Suite 300 
 Mountain View, CA, 94040 
 Tel: (650) 815-3100

 Fax: (650) 815-3500 

 
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 Attention: Steven R. Springsteel 
  
 with a copy to: 
  
 Wilson Sonsini Goodrich & Rosati 
 650 Page Mill Road 
 Palo Alto, CA 94304 
 Tel: (650) 493-9300

 Fax: (650) 493-6811 
 Attention: Kathleen B. Bloch, Esq. 
  
 All such notices and communications shall be effective (a)
when sent by Federal Express or other overnight service of recognized standing, on the third business day following the deposit with such service; and (b) when faxed, upon confirmation of receipt. 
  
 (b) Nonwaiver. No failure or delay on Secured Party’s part in exercising any right hereunder shall operate as a waiver thereof
or of any other right nor shall any single or partial exercise of any such right preclude any other further exercise thereof or of any other right. 
  
 (c) Amendments and Waivers. This Security Agreement may not be amended or modified, nor may any of its terms be waived, except by written instruments signed by Debtor and Secured Party. Each
waiver or consent under any provision hereof shall be effective only in the specific instances for the purpose for which given. Secured Party hereby agrees that, upon the request from Debtor for any waiver or amendment hereunder, Secured Party will
promptly forward such request to the Executive Committee of Secured Party’s ultimate parent company, chinadotcom corporation, and will use reasonable efforts to respond to such request within two (2) weeks from the date of such request.

  
 (d) Assignments. This Security Agreement shall be binding upon and inure to the benefit of Secured Party
and Debtor and their respective successors and assigns; provided, however, that Debtor may not sell, assign or delegate rights and obligations hereunder without the prior written consent of Secured Party. 
  
 (e) Payments Free of Taxes, Etc. All payments made by Debtor under this Security Agreement shall be made by Debtor free and clear
of and without deduction for any and all present and future taxes, levies, charges, deductions and withholdings. In addition, Debtor shall pay upon demand any stamp or other taxes, levies or charges of any jurisdiction with respect to the execution,
delivery, registration, performance and enforcement of this Security Agreement. Upon request by Secured Party, Debtor shall furnish evidence satisfactory to Secured Party that all requisite authorizations and approvals by, and notices to and filings
with, governmental authorities and regulatory bodies have been obtained and made and that all requisite taxes, levies and charges have been paid. 
  
 (f) Partial Invalidity. If at any time any provision of this Security Agreement is or becomes illegal, invalid or unenforceable in any respect under the law or any jurisdiction, neither


 
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 the legality, validity or enforceability of the remaining provisions of this Security Agreement nor the
legality, validity or enforceability of such provision under the law of any other jurisdiction shall in any way be affected or impaired thereby. 
  
 (g) Headings. Headings in this Security Agreement are for convenience of reference only and are not part of the substance hereof or thereof. 
  

(h) Construction. Each of this Security Agreement and the Notes are the result of negotiations among, and has been reviewed by, Debtor, Secured Party and their
respective counsel. Accordingly, this Security Agreement and the Notes shall be deemed to be the product of all parties hereto, and no ambiguity shall be construed in favor of or against Debtor or Secured Party. 
  
 (i) Entire Agreement. This Security Agreement and the other Transaction Documents, taken together, constitute and contain the
entire agreement of Debtor and Secured Party and supersede any and all prior agreements, negotiations, correspondence, understandings and communications among the parties, whether written or oral, respecting the subject matter hereof. 

 
 (j) Governing Law. This Security Agreement shall be governed by and construed in accordance with the laws of the State
of California without reference to conflicts of law rules (except to the extent governed by the UCC) THE PARTIES HERETO, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE
RELATING HERETO IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
  
 (k)
Counterparts. This Security Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall be deemed to constitute one instrument. 
  
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 IN WITNESS WHEREOF, the parties have caused this Agreement to be
duly executed and delivered by their proper and duly authorized officers as of the date and year first written above. 
  
 
	 SAGENT TECHNOLOGY, INC.
 a Delaware corporation
 
	 
	 By:
 	 	 

	  	 	  
	 Name:
 	 	 

	  	 	  
	 Title:
 	 	 


 
  
 
	 CDC SOFTWARE CORPORATION
 a Cayman Islands corporation


	 
	 By:
 	 	 

	  	 	  
	 Name:
 	 	 

	  	 	  
	 Title:
 	 	 


 
  







 ATTACHMENT 1 
  
 To Security Agreement 
  
 All right, title, interest, claims and demands of Debtor in
and to all of its assets and properties including, without limitation, the following: 
  
 (i) All goods and equipment
now owned or hereafter acquired, including, without limitation, all laboratory equipment, computer equipment, office equipment, machinery, fixtures, vehicles, and any interest in any of the foregoing, and all attachments, accessories, accessions,
replacements, substitutions, additions, and improvements to any of the foregoing, wherever located; 
  
 (ii) All
inventory now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products including such inventory as is temporarily out of
Debtor’s custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any
of the above, and Debtor’s books relating to any of the foregoing; 
  
 (iii) All contract rights, general
intangibles, health care insurance receivables, payment intangibles and commercial tort claims, now owned or hereafter acquired, including, without limitation, all patents, patent rights (and applications and registrations therefor), trademarks and
service marks (and applications and registrations therefor), inventions, copyrights, mask works (and applications and registrations therefor), trade names, trade styles, software and computer programs, trade secrets, methods, processes, know how,
drawings, specifications, descriptions, and all memoranda, notes, and records with respect to any research and development, goodwill, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists,
infringements, claims, computer programs, computer disks, computer tapes, literature, reports, catalogs, design rights, income tax refunds, payments of insurance and rights to payment of any kind and whether in tangible or intangible form or
contained on magnetic media readable by machine together with all such magnetic media; 
  
 (iv) All now existing and
hereafter arising accounts, contract rights, royalties, license rights and all other forms of obligations owing to Debtor arising out of the sale or lease of goods, the licensing of technology or the rendering of services by Debtor (subject, in each
case, to the contractual rights of third parties to require funds received by Debtor to be expended in a particular manner), whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as
all merchandise returned to or reclaimed by Debtor and Debtor’s books relating to any of the foregoing; 
  
 (v)
All documents, cash, deposit accounts, letters of credit, letter of credit rights, supporting obligations, certificates of deposit, instruments, chattel paper, electronic chattel 







  
 paper, tangible chattel paper and investment property, including, without limitation, all securities,
whether certificated or uncertificated, security entitlements, securities accounts, commodity contracts and commodity accounts, and all financial assets held in any securities account or otherwise, wherever located, now owned or hereafter acquired
and Debtor’s books relating to the foregoing; 
  
 (vi) Any and all claims, rights and interests in any of the
above and all substitutions for, additions and accessions to and proceeds thereof, including, without limitation, insurance, condemnation, requisition or similar payments and the proceeds thereof; and 
  
 (vii) Any Lien obtained by Debtor from any third party as security for the payment or enforcement of accounts. 







  
 ATTACHMENT 2 
  
 TO SECURITY AGREEMENT 
  
 [list offices]