EXHIBIT 10.1

CREDIT AGREEMENT

THIS AGREEMENT is entered into as of June 15, 2001, by and between SABA SOFTWARE, INC., a Delaware corporation ("Borrower"), and WELLS FARGO
BANK, NATIONAL ASSOCIATION ("Bank").

RECITALS

Borrower has requested that Bank extend or continue credit to Borrower as described below, and Bank has agreed to provide such credit to Borrower on the terms
and conditions contained herein.

NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Bank and Borrower hereby agree as follows:

ARTICLE I  CREDIT TERMS

SECTION
1.1.LINE OF CREDIT.



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SECTION
1.2.INTEREST/FEES.



SECTION
1.3.COLLATERAL.

As
security for all indebtedness of Borrower to Bank subject hereto, Borrower hereby grants to Bank security interests of first priority in all Collateral under, and as defined in,
the Security Agreements described in Section 3.1(b) hereof and such other security agreements as Borrower may from time to time execute and deliver in connection with this Agreement or the
other Loan Documents. The Collateral includes, without limitation, and Borrower hereby grants to Bank a security interest of first priority, in all of Borrower's accounts receivable and equipment and
in Wells Capital Management account number            (the "Securities Account") and all amounts and other financial assets held therein.

All
of the foregoing shall be evidenced by and subject to the terms of such security agreements, financing statements and other documents as Bank shall reasonably require, all in form
and substance satisfactory to Bank. Borrower shall reimburse Bank immediately upon demand for all costs and expenses incurred by Bank in connection with any of the foregoing security, including
without limitation, filing and recording fees and costs of appraisals and audits.

ARTICLE II  REPRESENTATIONS AND WARRANTIES

Borrower makes the following representations and warranties to Bank, which representations and warranties shall survive the execution of this Agreement and
shall continue in full force and effect until
the full and final payment, and satisfaction and discharge, of all obligations of Borrower to Bank subject to this Agreement.

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SECTION 2.1.LEGAL STATUS.  Borrower is a corporation, duly organized and existing and in good standing
under the laws of the State of Delaware, and is qualified or licensed to do business (and is in good standing as a foreign corporation, if applicable) in all jurisdictions in which such qualification
or licensing is necessary or desirable if the failure to so qualify or to be so licensed could have a material adverse effect on Borrower.

SECTION
2.2.AUTHORIZATION AND VALIDITY.  This Agreement and each promissory note, contract, instrument
and other document required hereby or at any time hereafter delivered to Bank in connection herewith (collectively, the "Loan Documents") have been duly authorized, and upon their execution and
delivery in accordance with the provisions hereof will constitute legal, valid and binding agreements and obligations of Borrower, enforceable in accordance with their respective terms.

SECTION
2.3.NO VIOLATION.  The execution, delivery and performance by Borrower of each of the Loan
Documents do not violate any provision of any law or regulation, or contravene any provision of the Articles of Incorporation or By-Laws of Borrower, or result in any breach of or default
under any contract, obligation, indenture or other instrument to which Borrower is a party or by which Borrower may be bound.

SECTION
2.4.LITIGATION.  There are no pending, or to the best of Borrower's knowledge threatened,
actions, claims, investigations, suits or proceedings by or before any governmental authority, arbitrator, court or administrative agency which could have a material adverse effect on the condition
(financial or otherwise), business, assets or operations of Borrower other than those disclosed by Borrower to Bank in writing prior to the date hereof.

SECTION
2.5.CORRECTNESS OF FINANCIAL STATEMENT.  The financial statement of Borrower dated
February 28, 2001, a true copy of which has been delivered by Borrower to Bank prior to the date hereof, (a) is complete and correct and presents fairly the financial condition of
Borrower, (b) discloses all liabilities of Borrower that are required to be reflected or reserved against under generally accepted accounting principles, whether liquidated or unliquidated,
fixed or contingent, and (c) has been prepared in accordance with generally accepted accounting principles consistently applied. Since the date of such financial statement there has been no
material adverse change in the financial condition of Borrower, nor has Borrower mortgaged, pledged, granted a security interest in or otherwise encumbered any of its assets or properties except as
follows (collectively, "Permitted Liens"): (i) liens in favor of Bank or as otherwise permitted by Bank in writing; (ii) liens existing on the date of this Agreement and listed on
Schedule 2.5; (iii) liens for taxes, assessments, levies or other governmental charges not yet delinquent or being contested in good faith and by appropriate proceedings for which
adequate reserves are being maintained; (iv) carriers', warehousemen's, materialmen's and mechanics' and other similar liens imposed by law arising in the ordinary course of business which are
not delinquent or which are being contested in good faith and by appropriate proceedings for which adequate reserves are being maintained; (v) liens incurred or deposits made in the ordinary
course of business in connection with workers' compensation, unemployment insurance and other types of social security legislation and other liens to secure the performance and return of money bonds
and other similar obligations (exclusive of obligations for the payment of borrowed money) incurred in the ordinary course of business, whether pursuant to statutory requirements, common law or
consensual arrangements so long as no such liens attach to any of the Collateral if any obligation secured thereby is delinquent and so long as no foreclosure, sale or similar proceedings have been
commenced with respect to any such lien; (vi) liens (including in respect of capital lease obligations) upon any property acquired or held by Borrower to secure the purchase price of such
property or indebtedness incurred solely for the purpose of financing the acquisition of such property, so long as (A) such lien extends only to the property acquired or financed and proceeds
(including insurance proceeds) thereof (B) such lien attaches to such property concurrently with or within ninety (90) days after the acquisition thereof, and (C) the principal
amount of the indebtedness secured thereby does not exceed 100% of the cost of such property (vii) nonexclusive licenses and sublicenses granted to others in the ordinary course of business
that do not interfere in any material respect with the conduct of Borrower's business or result in any material diminution in the value of any Collateral;

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(viii) liens securing judgments, decrees or attachments in circumstances not constituting an Event of Default, but excluding any lien in respect of any such judgment, decree or attachment that
remains undischarged for a period of more than thirty (30) days during which execution is not stayed; (ix) liens in favor of customs and review authorities arising as a matter of law to
secure payments of customs duties in connection with the importation of goods; and (x) in the case of clauses (ii), (vi) and (vii) above, any renewals, extensions or replacements
thereof, provided that the property covered thereby is not increased or expanded and any renewal, extension or replacement of the obligations secured or benefited thereby is permitted by Section 5.2and does not increase the amount secured thereby.

All
Permitted Liens with respect to which Borrower has executed any financing statement, security agreement, pledge or charge and that are existing as of the date of this Agreement
are listed onSchedule 2.5

SECTION
2.6.INCOME TAX RETURNS.  Borrower has no knowledge of any pending assessments or adjustments of
its income tax payable with respect to any year.

SECTION
2.7.NO SUBORDINATION.  There is no agreement, indenture, contract or instrument to which
Borrower is a party or by which Borrower may be bound that requires the subordination in right of payment of any of Borrower's obligations subject to this Agreement to any other obligation of
Borrower.

SECTION
2.8.PERMITS, FRANCHISES.  Borrower possesses, and will hereafter possess, all permits,
consents, approvals, franchises and licenses required and rights to all trademarks, trade names, patents, and fictitious names, if any, necessary to enable it to conduct the business in which it is
now engaged in compliance with applicable law except to the extent such failure to possess, or compliance with applicable law would not have a material adverse effect of the condition (financial or
otherwise), business, assets or operations of Borrower.

SECTION
2.9.ERISA.  Borrower is in compliance in all material respects with all applicable provisions
of the Employee Retirement Income Security Act of 1974, as amended or recodified from time to time ("ERISA"); Borrower has not violated any provision of any defined employee pension benefit plan (as
defined in ERISA) maintained or contributed to by Borrower (each, a "Plan"); no Reportable Event as defined in ERISA has occurred and is continuing with respect to any Plan initiated by Borrower;
Borrower has met its minimum funding requirements under ERISA with respect to each Plan; and each Plan will be able to fulfill its benefit obligations as they come due in accordance with the Plan
documents and under generally accepted accounting principles.

SECTION
2.10.OTHER OBLIGATIONS.  Borrower is not in default on any obligation for borrowed money, any
purchase money obligation or any other material lease, commitment, contract, instrument or obligation.

SECTION
2.11.ENVIRONMENTAL MATTERS.  Except as disclosed by Borrower to Bank in writing prior to the
date hereof, Borrower is in compliance with all applicable federal or state environmental, hazardous waste, health and safety statutes, and any rules or regulations adopted pursuant thereto, which
govern or affect any of Borrower's operations and/or properties, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Superfund
Amendments and Reauthorization Act of 1986, the Federal Resource Conservation and Recovery Act of 1976, and the Federal Toxic Substances Control Act, as any of the same may be amended, modified or
supplemented from time to time, except to the extent that any failure so to be in compliance has not had and could not reasonably be expected to have a material adverse effect on the condition
(financial or otherwise), business, assets or operations of the Borrower. None of the operations of Borrower is the subject of any federal or state investigation evaluating whether any remedial action
involving a material expenditure is needed to respond to a release of any toxic or hazardous waste or substance into the environment. To the best of Borrower's knowledge, Borrower has no material
contingent liability in connection with any release of any toxic or hazardous waste or substance into the environment.

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ARTICLE III  CONDITIONS

SECTION
3.1.CONDITIONS OF INITIAL EXTENSION OF CREDIT.  The obligation of Bank to make the initial
extension of credit contemplated by this Agreement is subject to the fulfillment to Bank's satisfaction of all of the following conditions:



(i)

This Agreement and each promissory note or other instrument required hereby;(ii)

Security Agreement: Securities Account;(iii)

Securities Account Control Agreement-WF Affiliate Intermediary;(iv)

Corporate Resolution: Borrowing;(v)

Certificate of Incumbency;(vi)

Addendum to Security Agreement: Securities Account;(vii)

Continuing Security Agreement: Rights to Payment;(viii)

Security Agreement: Equipment; and(ix)

such other documents as Bank may require under any other Section of this Agreement.




SECTION
3.2.CONDITIONS OF EACH EXTENSION OF CREDIT.  The obligation of Bank to make each extension of
credit requested by Borrower hereunder (including the initial extension) shall be subject to the fulfillment to Bank's satisfaction of each of the following conditions:



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ARTICLE IV  AFFIRMATIVE COVENANTS

Borrower covenants that so long as Bank remains committed to extend credit to Borrower pursuant hereto, or any liabilities (whether direct or contingent,
liquidated or unliquidated) of Borrower to Bank
under any of the Loan Documents remain outstanding, and until payment in full of all obligations of Borrower subject hereto, Borrower shall, unless Bank otherwise consents in writing:

SECTION
4.1.PUNCTUAL PAYMENTS.  Punctually pay all principal, interest, fees or other liabilities due
under any of the Loan Documents at the times and place and in the manner specified therein.

SECTION
4.2.ACCOUNTING RECORDS.  Maintain adequate books and records in accordance with generally
accepted accounting principles consistently applied, and permit any representative of Bank, at any reasonable time, to inspect, audit and examine such books and records, to make copies of the same,
and to inspect the properties of Borrower.

SECTION
4.3.FINANCIAL STATEMENTS.  Provide to Bank all of the following, in form and detail
satisfactory to Bank:



SECTION
4.4.COMPLIANCE.  Preserve and maintain all licenses, permits, governmental approvals, rights,
privileges and franchises necessary for the conduct of its business; and comply with the provisions of all documents pursuant to which Borrower is organized and/or which govern Borrower's continued
existence and with the requirements of all laws, rules, regulations and orders of any governmental authority applicable to Borrower and/or its business except in each case where failure to do so does
not have a material adverse effect on the condition (financial or otherwise), business, assets or operations of Borrower.

SECTION
4.5.INSURANCE.  Maintain and keep in force insurance of the types and in amounts customarily
carried in lines of business similar to that of Borrower, including but not limited to fire, extended coverage, public liability, flood, property damage and workers' compensation, with all such
insurance carried with companies and in amounts satisfactory to Bank, and deliver to Bank from time to time at Bank's request schedules setting forth all insurance then in effect.

SECTION
4.6.FACILITIES.  Keep all material properties useful or necessary to Borrower's business in
good repair and condition, normal wear and tear excepted, and from time to time make necessary repairs, renewals and replacements thereto so that such properties shall be fully and efficiently
preserved and maintained.

SECTION
4.7.TAXES AND OTHER LIABILITIES.  Pay and discharge when due any and all material indebtedness,
obligations, assessments and taxes, both real or personal, including without limitation federal and state income taxes and state and local property taxes and assessments, except such (a) as
Borrower may in good faith contest or as to which a bona fide dispute may arise, and (b) for which Borrower maintains with respect thereto adequate reserves in accordance with generally
accepted accounting principles.

SECTION
4.8.LITIGATION.  Promptly give notice in writing to Bank of any litigation pending or
threatened against Borrower with a claim in excess of $1,000,000.00.

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SECTION 4.9.NOTICE TO BANK.  Promptly (but in no event more than five (5) days after the
occurrence of each such event or matter) give written notice to Bank in reasonable detail of: (a) the occurrence of any Event of Default, or any condition, event or act which with the giving of
notice or the passage of time or both would constitute an Event of Default; (b) any change in the name or the organizational structure of Borrower; (c) the occurrence and nature of any
Reportable Event or Prohibited Transaction, each as defined in ERISA, or any material funding deficiency with respect to any Plan; or (d) any termination or cancellation of any insurance policy
which Borrower is required to maintain and not immediately replaced by insurance policies meeting the requirements of this Agreement, or any uninsured or partially uninsured loss through liability or
property damage, or through fire, theft or any other cause affecting Borrower's property in excess of an aggregate of $1,000,000.00.

ARTICLE V  NEGATIVE COVENANTS

Borrower further covenants that so long as Bank remains committed to extend credit to Borrower pursuant hereto, or any liabilities (whether direct or
contingent, liquidated or unliquidated) of Borrower to Bank under any of the Loan Documents remain outstanding, and until payment in full of all obligations of Borrower subject hereto, Borrower will
not without Bank's prior written consent:

SECTION
5.1.USE OF FUNDS.  Use any of the proceeds of any credit extended hereunder except for the
purposes stated in Article I hereof.

SECTION
5.2.OTHER INDEBTEDNESS.  Create, incur, assume or permit to exist any indebtedness or
liabilities resulting from borrowings, loans or advances, whether secured or unsecured, matured or unmatured, liquidated or unliquidated, joint or several, except (a) the liabilities of
Borrower to Bank, (b) any other liabilities of Borrower existing as of, and disclosed to Bank prior to, the date hereof, (c) any indebtedness or liability secured by Permitted Liens of
the type described in clause (vi) of Section 2.5, (d) any indebtedness to finance insurance premiums or to finance trade payables, and (e) unsecured indebtedness in an
amount not to exceed in the aggregate $1,000,000 at any time outstanding.

SECTION
5.3.GUARANTIES.  Guarantee or become liable in any way as surety, endorser (other than as
endorser of negotiable instruments for deposit or collection in the ordinary course of business), accommodation endorser or otherwise for, nor pledge or hypothecate any assets of Borrower as security
for, any liabilities or obligations of any other person or entity, except any of the foregoing (a) in favor of Bank and (b) in respect of any indebtedness or other liability of a
wholly-owned subsidiary of Borrower to the extent that, if Borrower were to be primarily obligated with respect to such guaranteed liability, Borrower would be permitted to incur such indebtedness or
other liability pursuant to Section 5.2.

SECTION
5.4.MERGER, CONSOLIDATION, TRANSFER OF ASSETS.  Merge into acquire or consolidate with any
other entity, unless (i) Borrower is the surviving entity, and (ii) Borrower's senior management that is in place prior to and after the merger, acquisition or consolidation remains
substantially intact following the same; make any substantial change in the nature of Borrower's business as conducted as of the date hereof; nor sell, lease, transfer or otherwise dispose of all or a
substantial or material portion of Borrower's assets except in the ordinary course of its business.

SECTION
5.5.PLEDGE OF ASSETS.  Mortgage, pledge, grant or permit to exist a security interest in, or
lien upon, all or any portion of Borrower's assets now owned or hereafter acquired, except Permitted Liens.

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ARTICLE VI  EVENTS OF DEFAULT

SECTION
6.1.The occurrence of any of the following shall constitute an "Event of Default" under this
Agreement:



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SECTION
6.2.REMEDIES.  Upon the occurrence of any Event of Default: (a) all indebtedness of
Borrower under each of the Loan Documents, any term thereof to the contrary notwithstanding, shall at Bank's option and without notice become immediately due and payable without presentment, demand,
protest or notice of dishonor, all of which are hereby expressly waived by each Borrower; (b) the obligation, if any, of Bank to extend any further credit under any of the Loan Documents shall
immediately cease and terminate; and (c) Bank shall have all rights, powers and remedies available under each of the Loan Documents, or accorded by law, including without limitation the right
to resort to any or all security for any credit subject hereto and to exercise any or all of the rights of a beneficiary or secured party pursuant to applicable law. All rights, powers and remedies of
Bank may be exercised at any time by Bank and from time to time after the occurrence of an Event of Default, are cumulative and not exclusive, and shall be in addition to any other rights, powers or
remedies provided by law or equity.

ARTICLE VII  MISCELLANEOUS

SECTION
7.1.NO WAIVER.  No delay, failure or discontinuance of Bank in exercising any right, power or
remedy under any of the Loan Documents shall affect or operate as a waiver of such right, power or remedy; nor shall any single or partial exercise of any such right, power or remedy preclude, waive
or otherwise affect any other or further exercise thereof or the exercise of any other right, power or remedy. Any waiver, permit, consent or approval of any kind by Bank of any breach of or default
under any of the Loan Documents must be in writing and shall be effective only to the extent set forth in such writing.

SECTION
7.2.NOTICES.  All notices, requests and demands which any party is required or may desire to
give to any other party under any provision of this Agreement must be in writing delivered to each party at the following address:

BORROWER:

SABA SOFTWARE, INC.
2400 Bridge Parkway
Redwood Shores, CA 94065
Facsimile No: (650) 581-2545BANK:

WELLS FARGO BANK, NATIONAL ASSOCIATION
Peninsula Regional Commercial Banking Office
400 Hamilton Avenue
Palo Alto, CA 94301
Facsimile No: (650) 328-0814


or
to such other address as any party may designate by written notice to all other parties. Each such notice, request and demand shall be deemed given or made as follows: (a) if sent by hand
delivery, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3) days after deposit in the U.S. mail, first class and postage prepaid; and (c) if
sent by telecopy, upon receipt.

SECTION
7.3.COSTS, EXPENSES AND ATTORNEYS' FEES.  Borrower shall pay to Bank within 10 days of
written demand therefore the full amount of all payments, advances, charges, costs and expenses, including reasonable attorneys' fees (to include outside counsel fees and all allocated costs of Bank's
in-house counsel), expended or incurred by Bank in connection with (a) the negotiation

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and preparation of this Agreement and the other Loan Documents, Bank's continued administration hereof and thereof, and the preparation of any amendments and waivers hereto and thereto, (b) the
enforcement of Bank's rights and/or the collection of any amounts which become due to Bank under any of the Loan Documents, and (c) the prosecution or defense of any action in any way related
to any
of the Loan Documents, including without limitation, any action for declaratory relief, whether incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including any
of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank or any other person) relating
to any Borrower or any other person or entity.

SECTION
7.4.SUCCESSORS, ASSIGNMENT.  This Agreement shall be binding upon and inure to the benefit of
the heirs, executors, administrators, legal representatives, successors and assigns of the parties; provided however, that Borrower may not assign or transfer its interest hereunder without Bank's
prior written consent. Bank reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Bank's rights and benefits under each of the Loan
Documents at any time that an Event of Default exists and otherwise at any time on or after 60 days notice to Borrower. In connection therewith, Bank may disclose all documents and information
which Bank now has or may hereafter acquire relating to any credit subject hereto, Borrower or its business, or any collateral required hereunder, provided that such entity agrees to be subject to any
confidentiality agreements applicable hereto to the same extent as Bank.

SECTION
7.5.ENTIRE AGREEMENT; AMENDMENT.  This Agreement and the other Loan Documents constitute the
entire agreement between Borrower and Bank with respect to each credit subject hereto and supersede all prior negotiations, communications, discussions and correspondence concerning the subject matter
hereof and thereof. This Agreement may be amended or modified only in writing signed by each party hereto.

SECTION
7.6.NO THIRD PARTY BENEFICIARIES.  This Agreement is made and entered into for the sole
protection and benefit of the parties hereto and their respective permitted successors and assigns, and no other person or entity shall be a third party beneficiary of, or have any direct or indirect
cause of action or claim in connection with, this Agreement or any other of the Loan Documents to which it is not a party.

SECTION
7.7.TIME.  Time is of the essence of each and every provision of this Agreement and each other
of the Loan Documents.

SECTION
7.8.SEVERABILITY OF PROVISIONS.  If any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or any remaining provisions
of this Agreement.

SECTION
7.9.COUNTERPARTS.  This Agreement may be executed in any number of counterparts, each of which
when executed and delivered shall be deemed to be an original, and all of which when taken together shall constitute one and the same Agreement.

SECTION
7.10.GOVERNING LAW.  This Agreement shall be governed by and construed in accordance with the
laws of the State of California.

SECTION
7.11.ARBITRATION.



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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first written above.

|SABA SOFTWARE, INC., a Delaware corporation |  | WELLS FARGO BANK, NATIONAL ASSOCIATION
|------------------------------------------- |  | --------------------------------------
|By:                                         |  | /s/ Terry Carlitz                     
|Name:                                       |  | Terry Carlitz                         
|Title:                                      |  | Chief Financial Officer               

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