EX-10.1



 Exhibit 10.1 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 c/o Wells Fargo Capital Finance, LLC

 2450 Colorado Avenue, Suite 3000 West 
 Santa Monica, CA 90404 
 Dated as of April 29, 2013 

SABA SOFTWARE, INC. 
 2400 Bridge Parkway

 Redwood Shores, CA 94065 
 Attn: Mike
Shahbazian 
 Fax No.: (650) 581-2545 
  

	Re:	Extension under Credit Agreement 

 Ladies and
Gentlemen: 
 Reference is made to: (i) that certain CREDIT AGREEMENT (as amended, restated, supplemented, or
otherwise modified from time to time, the “Credit Agreement”) dated as of June 27, 2011 by and between WELLS FARGO BANK, NATIONAL ASSOCIATION (“Lender”), and SABA SOFTWARE, INC., a Delaware
corporation (“Borrower”), (ii) that certain Extension under Credit Agreement Letter (the “First Extension Letter”) dated as of April 13, 2012 by and between Lender and Borrower, (iii) that certain
Second Extension under Credit Agreement Letter (the “Second Extension Letter”) dated as of May 31, 2012 by and between Lender and Borrower, (iv) that certain Third Extension under Credit Agreement Letter (the
“Third Extension Letter”) dated as of June 28, 2012 by and between Lender and Borrower, (v) that certain Extension Under Credit Agreement Letter (the “Fourth Extension Letter”) dated as of July 31,
2012 and effective July 30, 2012, by and between Lender and Borrower, (vi) that certain Extension Under Credit Agreement and Waiver Letter (the “Fifth Extension Letter”) dated as of August 31, 2012, by and among
Lender, Borrower, and Guarantors, (vii) that certain Extension Under Credit Agreement Letter (the “Sixth Extension Letter”) dated as of September 28, 2012, by and among Lender, Borrower, and Guarantors, (viii) that
certain Extension Under Credit Agreement Letter (the “Seventh Extension Letter”) dated as of October 31, 2012, by and among Lender, Borrower, and Guarantors, (ix) that certain Extension Under Credit Agreement Letter (the
“Eighth Extension Letter”) dated as of November 30, 2012, by and among Lender, Borrower, and Guarantors, (x) that certain Extension Under Credit Agreement Letter (the “Ninth Extension Letter”) dated as of
December 21, 2012, by and among Lender, Borrower, and Guarantors, (xi) that certain Extension Under Credit Agreement Letter (the “Tenth Extension Letter”) dated as of January 28, 2013, by and among Lender, Borrower,
and Guarantors, (xii) that certain Extension Under Credit Agreement Letter (the “Eleventh Extension Letter”) dated as of February 26, 2013, by and among Lender, Borrower, and Guarantors and (xiii) that certain
Extension Under Credit Agreement Letter (the “Twelfth Extension Letter”) dated as of March 29, 2013, by and among Lender, Borrower, and Guarantors. All initially capitalized terms used herein without definition shall have the
meanings ascribed thereto in the Credit Agreement. 
 Extension of 2012 Third Quarter Quarterly Delivery Deadline 

Pursuant to the Twelfth Extension Letter, on or before April 30, 2013 (the “Twelfth Extended 2012 Third Quarter Quarterly
Delivery Deadline”), Borrower shall deliver to Lender (i) copies of the Form 10-Q report for Borrower’s fiscal quarter ended February 29, 2012 filed by Borrower with the United States Securities and Exchange Commission
or any successor agency and, (ii) concurrently therewith, the consolidating financial statements of Borrower, prepared by Borrower, to include balance 







 
sheets, income statements, statements of retained earnings and statements of cash flows, and a duly completed Compliance Certificate executed by a senior financial officer of Borrower, in each
case, for such fiscal quarter (the “2012 Third Quarter Quarterly Deliverables”). 
 Borrower has requested that
Lender extend the Twelfth Extended 2012 Third Quarter Quarterly Delivery Deadline to May 31, 2013. Lender is willing to grant the extension requested by Borrower. Accordingly, Lender hereby extends the Twelfth Extended 2012 Third Quarter
Quarterly Delivery Deadline to May 31, 2013 (the “Thirteenth Extended 2012 Third Quarter Quarterly Delivery Deadline”). Failure of Borrower to deliver or cause to be delivered to Lender the 2012 Third Quarter Quarterly
Deliverables by the Thirteenth Extended 2012 Third Quarter Quarterly Delivery Deadline shall constitute an immediate Event of Default, unless otherwise waived in writing in accordance with the Credit Agreement prior to such time. 

Extension of First Quarter Quarterly Delivery Deadline 
 Pursuant to the Twelfth Extension Letter, on or before April 30, 2013 (the “Seventh Extended First Quarter Quarterly Delivery Deadline”) Borrower shall deliver to Lender
(i) copies of the Form 10-Q report for Borrower’s fiscal quarter ended August 31, 2012 filed by Borrower with the United States Securities and Exchange Commission or any successor agency and, (ii) concurrently therewith, the
consolidating financial statements of Borrower, prepared by Borrower, to include balance sheets, income statements, statements of retained earnings and statements of cash flows, and a duly completed Compliance Certificate executed by a senior
financial officer of Borrower, in each case, for such fiscal quarter (the “First Quarter Quarterly Deliverables”). 
 Borrower has requested that Lender extend the Seventh Extended First Quarter Quarterly Delivery Deadline to May 31, 2013. Lender is willing to grant the extension requested by Borrower. Accordingly,
Lender hereby extends the Seventh Extended First Quarter Quarterly Delivery Deadline to May 31, 2013 (the “Eighth Extended First Quarter Quarterly Delivery Deadline”). Failure of Borrower to deliver or cause to be delivered to
Lender the First Quarter Quarterly Deliverables by the Eighth Extended First Quarter Quarterly Delivery Deadline shall constitute an immediate Event of Default, unless otherwise waived in writing in accordance with the Credit Agreement prior to such
time. 
 Extension of Second Quarter Quarterly Delivery Deadline 
 Pursuant to the Twelfth Extension Letter, on or before April 30, 2013 (the “Fourth Extended Second Quarter Quarterly Delivery Deadline”) Borrower shall deliver to Lender
(i) copies of the Form 10-Q report for Borrower’s fiscal quarter ended November 30, 2012 filed by Borrower with the United States Securities and Exchange Commission or any successor agency and, (ii) concurrently therewith,
the consolidating financial statements of Borrower, prepared by Borrower, to include balance sheets, income statements, statements of retained earnings and statements of cash flows, and a duly completed Compliance Certificate executed by a senior
financial officer of Borrower, in each case, for such fiscal quarter (the “Second Quarter Quarterly Deliverables”). 
 Borrower has requested that Lender extend the Fourth Extended Second Quarter Quarterly Delivery Deadline to May 31, 2013. Lender is willing to grant the extension requested by Borrower. Accordingly,
Lender hereby extends the Fourth Extended Second Quarter Quarterly Delivery Deadline to May 31, 2013 (the “Fifth Extended Second Quarter Quarterly Delivery Deadline”). Failure of Borrower to deliver or cause to be delivered to
Lender the Second Quarter Quarterly Deliverables by the Fifth Extended Second Quarter Quarterly Delivery Deadline shall constitute an immediate Event of Default, unless otherwise waived in writing in accordance with the Credit Agreement prior to
such time. 







 Extension of Annual Delivery Deadline 

Pursuant to the Twelfth Extension Letter, on or before April 30, 2013 (the “Eighth Extended Annual Delivery
Deadline”), Borrower shall deliver to Lender (i) copies of the Form 10-K report (including the financial statements contained therein, which shall be audited by Borrower’s independent certified public accountant (which independent
certified public accountant shall be of recognized national standing) for Borrower’s fiscal year ending May 31, 2012 and certified by such independent certified public accountant (i) to have been prepared in accordance with GAAP and
(ii) without any qualifications (including any (A) “going concern” or like qualification or exception, (B) qualification or exception as to the scope of such audit, or (C) qualification which relates to the treatment or
classification of any item and which, as a condition to the removal of such qualification, would require an adjustment to such item, the effect of which would be to cause any noncompliance with the provisions of Section 5.09 of the
Credit Agreement)), filed by Borrower with the United States Securities and Exchange Commission or any successor agency, (ii) concurrently therewith, consolidating financial statements of Borrower, prepared by Borrower (to include balance
sheets, profit and loss statements, statements of cash flows, and reconciliations of net worth) for such fiscal year, and (iii) a duly completed Compliance Certificate executed by a senior financial officer of Borrower (the “Annual
Deliverables”). 
 Borrower has requested that Lender extend the Eighth Extended Annual Delivery Deadline to
May 31, 2013. Lender is willing to grant the extension requested by Borrower. Accordingly, Lender hereby extends the Eighth Extended Annual Delivery Deadline to May 31, 2013 (the “Ninth Extended Annual Delivery Deadline”).
Failure of Borrower to deliver or cause to be delivered to Lender the Annual Deliverables by the Ninth Extended Annual Delivery Deadline shall constitute an immediate Event of Default, unless otherwise waived in writing in accordance with the Credit
Agreement prior to such time. 
 Extension of 2013 Third Quarter Quarterly Delivery Deadline 

Pursuant to the Twelfth Extension Letter, on or before April 30, 2013 (the “Extended 2013 Third Quarter Quarterly Delivery
Deadline”), Borrower shall deliver to Lender (i) copies of the Form 10-Q report for Borrower’s fiscal quarter ended February 28, 2013 filed by Borrower with the United States Securities and Exchange Commission or any
successor agency and, (ii) concurrently therewith, the consolidating financial statements of Borrower, prepared by Borrower, to include balance sheets, income statements, statements of retained earnings and statements of cash flows, and a duly
completed Compliance Certificate executed by a senior financial officer of Borrower, in each case, for such fiscal quarter (the “2013 Third Quarter Quarterly Deliverables”). 

Borrower has requested that Lender extend the Extended 2013 Third Quarter Quarterly Delivery Deadline to May 31, 2013. Lender is
willing to grant the extension requested by Borrower. Accordingly, Lender hereby extends the Extended 2013 Third Quarter Quarterly Delivery Deadline to May 31, 2013 (the “Second Extended 2013 Third Quarter Quarterly Delivery
Deadline”). Failure of Borrower to deliver or cause to be delivered to Lender the 2013 Third Quarter Quarterly Deliverables by the Second Extended 2013 Third Quarter Quarterly Delivery Deadline shall constitute an immediate Event of
Default, unless otherwise waived in writing in accordance with the Credit Agreement prior to such time. 
 This letter shall
not, except as expressly provided herein, by implication or otherwise, limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of Lender under the Credit Agreement or the other Loan Documents, and shall not, except as
expressly provided herein, alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or the other Loan Documents. Nothing herein shall be deemed to








 
entitle Borrower or any Guarantor to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the
Credit Agreement or the other Loan Documents in similar or different circumstances. This letter shall be subject to the provisions regarding choice of law and venue and jury trial waiver applicable to the Credit Agreement. 

Each of the undersigned Guarantors consents to the extensions contained herein. Although the undersigned Guarantors have been informed of
the matters set forth herein and have consented to same, each Guarantor understands that the Lender Group has no obligation to inform it of such matters in the future or to seek its acknowledgement or agreement to future consents,
amendments, or waivers, and nothing herein shall create such a duty. 
 Each of Borrower and each Guarantor hereby
reaffirms its obligations under each Loan Document to which it is a party. All of such obligations owing by Borrower and such Guarantor are unconditionally owing by Borrower and such Guarantor to Lender without offset, defense, withholding,
counterclaim or deduction of any kind, nature or description whatsoever. Each of Borrower and each Guarantor hereby further ratifies and reaffirms the validity and enforceability of all of the Loan Documents to which it is a party, including any
amendments or modifications or substitutions thereto, and ratifies and reaffirms the validity and enforceability of all of Liens and security interests heretofore granted by it pursuant to or in connection with any Loan Document to Lender,
as security for its obligations under the Loan Documents in accordance with their respective terms, and acknowledges that all of such Liens and security interests, and all Collateral heretofore pledged as security for such obligations, continue
to be and remain in full force and effect on and after the date hereof except as expressly set forth herein. 
 This letter
shall constitute a Loan Document. 
 [Signature pages to follow.] 







 
			
	Very Truly Yours,
	
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Lender

		
	By:	 	 /s/ Daniel Morihiro

	Name:	 	Daniel Morihiro
	Title:	 	Director


 [SIGNATURE PAGE TO EXTENSION LETTER] 







 Acknowledged, agreed and accepted this 29th day of April 2013: 

 

			
	SABA SOFTWARE, INC.,
	a Delaware corporation, as Borrower
		
	By:	 	 /s/ Peter Williams

	Name:	 	Peter Williams
	Title:	 	Executive Vice President

  

			
	HAL ACQUISITION SUB INC.,
	a Delaware corporation, as a Guarantor
		
	By:	 	 /s/ Peter Williams

	Name:	 	Peter Williams
	Title:	 	Executive Vice President

  

			
	HUMANCONCEPTS, LLC,
	a California limited liability company, as a Guarantor
		
	By:	 	 /s/ Peter Williams

	Name:	 	Peter Williams
	Title:	 	Executive Vice President

 [SIGNATURE PAGE TO EXTENSION LETTER]