Document:

EXHIBIT 10.3

                             SAGENT TECHNOLOGY, INC.
                               SECURITY AGREEMENT

            This SECURITY AGREEMENT dated as of April 15, 2003 (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 Group 1 Software, Inc., a
Delaware corporation with its principal executive offices at 4200 Parliament
Place, Suite 600, Lanham, Maryland, 20706 ("Secured Party").

                                    RECITALS

            A. Pursuant to a Note Purchase Agreement dated as of the date hereof
between Debtor and Secured Party (the "Note Purchase Agreement"), Debtor will
issue to Secured Party, subject to the terms and conditions set forth in the
Note Purchase Agreement, one or more secured promissory notes in the aggregate
principal amount not to exceed $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, (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), or (iii) the outstanding
capital stock of a "controlled foreign corporation" (as defined in the Internal
Revenue Code of 1986, as amended) in excess of 65% of the voting power of all
classes of capital stock of such controlled foreign corporation entitled to
vote.

            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;

            (c) All accounts receivable and payment intangibles are genuine and
enforceable against the party obligated to pay the same; and

            (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) Subject to the terms of the Pledge Agreement, 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, it being agreed and understood that
Debtor is not required to obtain account control agreements in favor of Secured
Party;

            (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, (iii) non-exclusive licenses and similar arrangements for
the use of the property of Debtor and (iv) the sale or factoring of the
promissory notes that were issued to the Company by former employees of the
Company;

            (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;

            (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;

            (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

            (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 Lender to file financing statements without notice
to Company, with all appropriate jurisdictions, as Lender deems appropriate, in
order to perfect or protect Lender's security interest in the Collateral. The
Company shall execute and deliver to Lender, at the request of Lender, all
documents that Lender may reasonably request, in form satisfactory to Lender, to
perfect and continue perfected Lender'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;

                  Group 1 Software, Inc.
                  4200 Parliament Place, Suite 600
                  Lanham, Maryland, 20706
                  Tel: (301) 918-0400
                  Fax: (301) 918-0430
                  Attention: General Counsel

            with a copy to:

                  Cadwalader, Wickersham & Taft LLP
                  100 Maiden Lane
                  New York, New York 10038
                  Tel: (212) 504-6057
                  Fax: (212) 504-6666
                  Louis J. Bevilacqua, 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
                  Attention: Chief Executive Officer

            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: Stephen M. Welles, 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.

            (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 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.

            [The remainder of this page is intentionally left blank]
<PAGE>

            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.

                                       GROUP 1 SOFTWARE, INC.

                                       By: /s/ Mark D. Funston
                                           -----------------------------------
                                           Name:   Mark D. Funston
                                           Title:  Chief Executive Officer

                                       SAGENT TECHNOLOGY, INC.

                                       By: /s/ Andre Boisvert
                                           -----------------------------------
                                           Name:   Andre Boisvert
                                           Title:  Chairman and CEO

<PAGE>

                                  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.
<PAGE>

                                  ATTACHMENT 2
                              TO SECURITY AGREEMENT

1.    800 W. El Camino Real, Mountain View, CA

2.    125 TownPark Drive, Suite 300, Kennesaw, GA 30144

3.    Suite 1 of 261032 Hwy 1, Ste 1, Sequim, WA 98382

4.    800 High School Way, Apt. 3, Mountain View, CA 94040

5.    West Oaks Executive Park, 3702 Pender Drive, Suite 350, Suite 350,
      Fairfax, VA

6.    2030 Main St, Ste 1300, Irvine, CA 92614

7.    One O'Hare Centre, 6250 N. River Road, Suite 8005, Rosemont, IL 60018

8.    97 State Route 18 South, Suite 3000, East Brunswick, NJ 08816

9.    4750 Walnut St., Suite 200, Boulder, CO 80301-2538

10.   Building 2, Country Club Estate, Woodlands Drive, Woodmead, 2157 South
      Africa

11.   Far East Architects Building 5F, 2-12-2 Nishiazabu, Minato-ku, Tokyo,
      Japan 106-0031

12.   80 Raffles Place, 36th Floor, UOB Plaza 1, Singapore 048624

13.   100 Longwater Avenue, Green Park, Reading, Berkshire, RG2 6GP United
      Kingdom

14.   103 Rue Pereire, Bat A, 1er Etage, St. Germain en Laye 78105 France

15.   Muenchner Stra(beta)e 11, D-85540 Haar bei Muenchen, Germany

16.   Room 1215 Canway Building, 66 Nan Li Shi Road, Beijing, China 100045

17.   144-27 10th Floor, Bonsol Building, Samsung-Dong, Seoul, Korea

18.   Suite 7-5, Level 7, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450
      (closing in May 2003)EXHIBIT 10.4

                                PLEDGE AGREEMENT
                                ----------------

            PLEDGE AGREEMENT, dated as of April 15, 2003 (as amended, restated,
supplemented or otherwise modified from time to time, this "Agreement"), made by
Sagent Technology, Inc., a Delaware corporation with its principal executive
offices at 800 West El Camino Real, Suite 300, Mountain View, California 94040
(the "Company"), in favor of Group I Software, Inc., a Delaware corporation with
its principal executive offices at 4200 Parliament Place, Suite 600, Lanham,
Maryland, 20706 (the "Lender"). Except as otherwise defined herein, terms used
herein and defined in the Purchase Agreement (as defined below) shall be used
herein as therein defined.

                              W I T N E S S E T H:

            WHEREAS, the Company and the Lender have entered into a Note
Purchase Agreement, dated as of April 15, 2003 (as amended, restated,
supplemented or otherwise modified from time to time, the "Purchase Agreement"),
providing for the making of certain loans in the amount of up to $7,000,000 (the
"Loans");

            WHEREAS, it is a condition precedent to the making of the Loans
under the Purchase Agreement that the Company shall have executed and delivered
to the Lender this Agreement;

            WHEREAS, the Company desires to execute this Agreement to satisfy
the conditions described in the preceding paragraph;

            NOW, THEREFORE, in consideration of the benefits accruing to the
Company, the receipt and sufficiency of which are hereby acknowledged, the
Company hereby makes the following representations and warranties to the Lender
and hereby covenants and agrees with the Lender as follows:

            1. SECURITY FOR OBLIGATIONS. This Agreement is made by the Company
for the benefit of the Lender to secure:

            (i) the full and prompt payment when due (whether at the stated
      maturity, by acceleration or otherwise) of all obligations (including
      obligations which, but for the automatic stay under Section 362(a) of the
      Bankruptcy Code, would become due) and liabilities of the Company, now
      existing or hereafter incurred under, arising out of or in connection with
      any Transaction Document (as defined in the Purchase Agreement) to which
      the Company is a party and the due performance of and compliance by the
      Company with the terms of each such Transaction Document (all such
      obligations and liabilities under this clause (i), being herein
      collectively called the "Transaction Document Obligations");

            (ii) any and all sums advanced by the Lender in order to preserve
      the Collateral and/or its security interest therein;

            (iii) in the event of any proceeding for the collection of the
      Obligations (as defined below) or the enforcement of this Agreement, after
      an Event of Default shall have occurred and be continuing, the reasonable
      expenses of retaking, holding, preparing for sale or lease, selling or
      otherwise disposing of or realizing on the Collateral, or of any exercise
      by the Lender of its rights hereunder, together with reasonable attorneys'
      fees and court costs; and

            (iv) all amounts paid by the Lender as to which the Lender has the
      right to reimbursement under Section 11 of this Agreement;

all such obligations, liabilities, sums and expenses set forth in clauses (i)
through (iv) of this Section 1 being herein collectively called the
"Obligations."

            2. DEFINITION OF STOCK, NOTES, SECURITIES, ETC. (a) As used herein,
(i) the term "Stock" shall mean (x) all of the issued and outstanding shares of
stock of any corporation (including a corporation that is not organized under
the laws of the United States or any State or territory thereof (a "Foreign
Corporation")) at any time directly owned by the Company, and (y) all of the
voting and/or economic membership interests of an entity which is a limited
liability company, partnership or other unincorporated entity at any time
directly owned by the Company; (ii) the term "Notes" shall mean all promissory
notes at any time issued to, payable to or to the order of, or held by, the
Company; provided, however, that the term "Notes" shall not mean the promissory
notes that were issued to the Company by former employees of the Company; and
(iii) the term "Securities" shall mean the collective reference to the Stock and
Notes.

            (b) The Company represents and warrants that as of the date hereof:
(a) each Subsidiary (as defined in the Purchase Agreement) of the Company is
listed on Annex A hereto; (b) the Stock held by the Company consists of the
number and type of shares of Stock as described in Annex B hereto; (c) such
Stock constitutes that percentage of the issued and outstanding capital stock of
the issuing company as set forth in Annex B hereto; (d) the Notes held by the
Company consist of the promissory notes described in Annex C hereto; (e) the
Company is the holder of record and sole beneficial owner of the Company's Stock
and Notes and there exist no options or preemptive rights in respect of any of
the Stock; and (f) on the date hereof, the Company owns or possesses no other
Securities except as described on Annexes B and C hereto.

            (c) All Stock at any time pledged or required to be pledged
hereunder is hereinafter called the "Pledged Stock," all Notes at any time
pledged or required to be pledged hereunder are hereinafter called the "Pledged
Notes," all Pledged Stock and Pledged Notes together are called the "Pledged
Securities"; and the Pledged Securities, together with all proceeds thereof,
including any securities and moneys received and at the time held by the Lender
hereunder, are hereinafter called the "Collateral."

            (d) The Company has no Subsidiary which is a Foreign Corporation and
has operations or assets material to the business, operations or financial
condition of the Company (each such Subsidiary, a "Material Foreign Subsidiary")
other than as set forth on Annex A hereto.

            3. PLEDGE OF SECURITIES, ETC.

            3.1 Pledge. To secure the prompt and complete payment and
performance when due of all of the Obligations and for the purposes set forth in
Section 1, the Company hereby: (i) grants to the Lender for the benefit of the
Lender a continuing security interest of first priority in all of the Collateral
owned by the Company; provided that the Company shall only grant a security
interest hereunder in 65% of the Stock of each Material Foreign Subsidiary and
the Company shall not be required to grant any security interest in any other
Foreign Corporation; (ii) pledges and deposits as security with the Lender for
the benefit of the Lender the Securities (as limited by clause (i) in the case
of Securities representing interests in Material Foreign Subsidiaries) owned by
the Company on the date hereof, if any, and delivers to the Lender certificates
or instruments therefor, duly endorsed in blank in the case of Notes and
accompanied by undated stock powers duly executed in blank by the Company (and
accompanied by any transfer tax stamps required in connection with the pledge of
such securities) in the case of Stock, or such other instruments of transfer as
are acceptable to the Lender; provided, with respect to such certificates or
instruments of Sagent France, S.A., Sagent Technology GmbH and Sagent UK Ltd.,
the Company shall deliver such instruments or certificates, to the extent such
Securities can be certificated under applicable law, as the case may be, within
fifteen (15) days from the date hereof, and (iii) assigns, transfers,
hypothecates, mortgages, charges and sets over to the Lender all of the
Company's right, title and interest in and to such Securities (and in and to the
certificates or instruments evidencing such Securities), to be held by the
Lender, upon the terms and conditions set forth in this Agreement.

            3.2 Subsequently Acquired Securities. If the Company shall acquire
(by purchase, stock dividend or otherwise) any additional Securities (other than
Foreign Corporations which are not Material Foreign Subsidiaries) at any time or
from time to time after the date hereof, the Company will forthwith pledge and
deliver such Securities (or certificates or instruments representing such
Securities) as security to the Lender and deliver to the Lender certificates or
instruments thereof, in the case of Notes, duly endorsed in blank, and in the
case of Stock, accompanied by undated stock powers duly executed in blank by the
Company (and accompanied by any transfer tax stamps required in connection with
the pledge of such Securities), or such other instruments of transfer as are
reasonably acceptable to the Lender, and will promptly thereafter deliver to the
Lender a certificate executed by an Authorized Officer of the Company describing
such Securities and certifying that the same have been duly pledged with the
Lender pursuant to the terms and conditions of this Agreement. The Company shall
not be required at any time to pledge hereunder more than 65% of the total
combined voting power of all classes of capital stock entitled to vote of any
Foreign Corporation.

            3.3 Uncertificated Securities, Security Entitlements and Partnership
Interests. Notwithstanding anything to the contrary contained in Sections 3.1
and 3.2, if any Securities (whether now owned or hereafter acquired) are
uncertificated securities or security entitlements, the Company shall promptly
notify the Lender thereof, and shall promptly take all actions reasonably
required to perfect the security interest of the Lender under applicable law
(including, in any event, under Sections 9-312 and 8-106(c) or (d) of the
Uniform Commercial Code if applicable). The Company further agrees to take such
actions as are reasonably necessary or desirable to effect the foregoing and to
permit the Lender to exercise any of its rights and remedies hereunder.

            3.4 Pledge of Foreign Subsidiaries. Notwithstanding anything in this
Agreement to the contrary, the Company shall not incur, and the Lender shall be
solely responsible for, any costs and expenses, including attorneys fees,
incurred by either the Company or the Lender to obtain or perfect a security
interest or pledge in the Stock of any Foreign Corporation under the laws of any
jurisdiction outside of the United States. The Company shall reasonably
cooperate with the Lender as reasonably necessary to effect any such security
interest or pledge, but failure of the Lender to obtain or perfect any such
security interest or pledge in any jurisdiction outside of the United States
shall not be a default or Event of Default under this Agreement or any other
Transaction Document.

            4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. The Lender shall
have the right to appoint one or more sub-agents for the purpose of retaining
physical possession of the Pledged Securities, which may be held (in the
discretion of the Lender) in the name of the Company, endorsed or assigned in
blank or, following an Event of Default which is continuing, in favor of the
Lender or any nominee or nominees of the Lender or a sub-agent appointed by the
Lender.

            5. VOTING, ETC., WHILE NO EVENT OF DEFAULT. Unless and until an
Event of Default shall have occurred and be continuing, the Company shall be
entitled to exercise all voting rights attaching to any and all Pledged
Securities owned by it, and to give consents, waivers or ratifications in
respect thereof; provided that no vote shall be cast or any consent, waiver or
ratification given or any action taken which would violate, result in a breach
of any covenant contained in, or be materially inconsistent with, any of the
terms of this Agreement, the Purchase Agreement or any other Transaction
Document, or which would have the effect of materially impairing the value of
the Collateral or any part thereof or the position or interests of the Lender or
any other Lender therein. All such rights of a Company to vote and to give
consents, waivers and ratifications shall cease in case an Event of Default
shall occur and be continuing and Section 7 hereof shall become applicable.

            6. DIVIDENDS AND OTHER DISTRIBUTIONS. Unless and until an Event of
Default shall have occurred and be continuing, all cash dividends or other
amounts payable in respect of the Pledged Securities shall be paid to the
Company. The Lender shall also be entitled to receive directly, and to hold as
part of the Collateral:

            (i) all other or additional stock, or other securities or property
      (other than cash) paid or distributed by way of dividend or otherwise in
      respect of the Pledged Stock;

            (ii) all other or additional stock or other securities or property
      (including cash paid or distributed in respect of the Pledged Stock by way
      of stock-split, spin-off, split-up, reclassification, combination of
      shares or similar rearrangement; and

            (iii) all other or additional stock or other securities or property
      (including cash which may be paid in respect of the Collateral by reason
      of any consolidation, merger, exchange of stock, conveyance of assets,
      liquidation or similar corporate reorganization),

in each case other than any stock of a Foreign Corporation which does not
constitute Stock. All dividends, distributions or other payments which are
received by the Company contrary to the provisions of this Section 6 or Section
7 shall be received in trust for the benefit of the Lender and shall be
forthwith be delivered to the Lender as Collateral in the same form as so
received (with any necessary endorsement).

            7. REMEDIES IN CASE OF AN EVENT OF DEFAULT. In case an Event of
Default shall have occurred and be continuing, the Lender shall be entitled to
exercise all of the rights, powers and remedies (whether vested in it by this
Agreement or any other Transaction Document or by law) for the protection and
enforcement of its rights in respect of the Collateral, including, without
limitation, all the rights and remedies of a secured party upon default under
the Uniform Commercial Code, and the Lender shall be entitled, without
limitation, to exercise any or all of the following rights, which the Company
hereby agrees to be commercially reasonable:

            (i) to receive all amounts payable in respect of the Collateral
      otherwise payable under Section 6 to the Company;

            (ii) to transfer all or any part of the Collateral into the Lender's
      name or the name of its nominee or nominees;

            (iii) to accelerate any Pledged Note as and when it may be
      accelerated in accordance with its terms, and take any other lawful action
      to collect upon any Pledged Note (including, without limitation, to make
      any demand for payment thereon);

            (iv) to vote all or any part of the Pledged Stock (in each case
      whether or not transferred into the name of the Lender) and give all
      consents, waivers and ratifications in respect of the Collateral and
      otherwise act with respect thereto as though it were the outright owner
      thereof (the Company hereby irrevocably constituting and appointing the
      Lender the proxy and attorney-in-fact of the Company, with full power of
      substitution to do so); and

            (v) at any time or from time to time to sell, assign and deliver, or
      grant options to purchase, all or any part of the Collateral, or any
      interest therein, at any public or private sale, without demand of
      performance or advertisement or otherwise (all of which are hereby waived
      by the Company) or to redeem, for cash, on credit or for other property,
      for immediate or future delivery without any assumption of credit risk,
      and for such price or prices and on such terms as the Lender in its
      reasonable discretion may determine, provided that at least 10 days'
      notice of the time and place of any such sale shall be given to the
      Company. The Lender shall not be obligated to make such sale of Collateral
      regardless of whether any such notice of sale has theretofore been given.
      Each purchaser at any such sale shall hold the property so sold absolutely
      free from any claim or right on the part of the Company, and the Company
      hereby waives and releases to the fullest extent permitted by law any
      right or equity of redemption with respect to the Collateral, whether
      before or after sale hereunder, and all rights, if any, of marshalling the
      Collateral and any other security for the Obligations or otherwise. At any
      such sale, unless prohibited by applicable law, the Lender may bid for and
      purchase all or any part of the Collateral so sold free from any such
      right or equity of redemption. The Lender shall not be liable for failure
      to collect or realize upon any or all of the Collateral or for any delay
      in so doing nor shall it be under any obligation to take any action
      whatsoever with regard thereto.

            8. REMEDIES, ETC., CUMULATIVE. Each right, power and remedy of the
Lender provided for in this Agreement or any other Transaction Document, or now
or hereafter existing at law or in equity or by statute shall be cumulative and
concurrent and shall be in addition to every other such right, power or remedy.
The exercise or beginning of the exercise by the Lender or any other Lender of
any one or more of the rights, powers or remedies provided for in this Agreement
or any other Transaction Document or now or hereafter existing at law or in
equity or by statute or otherwise shall not preclude the simultaneous or later
exercise by the Lender or any other Lender of all such other rights, powers or
remedies, and no failure or delay on the part of the Lender to exercise any such
right, power or remedy shall operate as a waiver thereof. Unless otherwise
required by the Transaction Documents, no notice to or demand on the Company in
any case shall entitle it to any other or further notice or demand in similar or
other circumstances or constitute a waiver of any of the rights of the Lender or
any other Lender to any other further action in any circumstances without demand
or notice. The Lender agrees that this Agreement may be enforced only by the
action of the Lender.

            9. APPLICATION OF PROCEEDS. It is understood and agreed that the
Company shall remain liable to the extent of any deficiency between (x) the
amount of the Obligations satisfied with proceeds of the Collateral and (y) the
aggregate outstanding amount of such Obligations.

            10. PURCHASERS OF COLLATERAL. Upon any sale of the Collateral by the
Lender hereunder (whether by virtue of the power of sale herein granted,
pursuant to judicial process or otherwise), the receipt of the Lender or the
officer making the sale shall be a sufficient discharge to the purchaser or
purchasers of the Collateral so sold, and such purchaser or purchasers shall not
be obligated to see to the application of any part of the purchase money paid
over to the Lender or such officer or be answerable in any way for the
misapplication or nonapplication thereof.

            11. INDEMNITY. The Company agrees to indemnify and hold harmless the
Lender as set forth in the Note. In no event shall the Lender be liable, in the
absence of negligence or willful misconduct on its part, for any matter or thing
in connection with this Agreement other than to account for moneys or other
property actually received by it in accordance with the terms hereof.

            12. FURTHER ASSURANCES; POWER-OF-ATTORNEY. (a) Subject to Section
3.4 hereof, the Company agrees that it will join with the Lender in executing
and, at the Company's own expense, file and refile under the Uniform Commercial
Code such financing statements, continuation statements and other documents in
such offices as the Lender may reasonably deem necessary or appropriate and
wherever required or permitted by law in order to perfect and preserve the
Lender's security interest in the Collateral hereunder and hereby authorizes the
Lender to file financing statements and amendments thereto relative to all or
any part of the Collateral without the signature of the Company where permitted
by law, and agrees to do such further acts and things and to execute and deliver
to the Lender such additional conveyances, assignments, agreements and
instruments as the Lender may reasonably require or reasonably deem advisable to
carry into effect the purposes of this Agreement or to further assure and
confirm unto the Lender its rights, powers and remedies hereunder or thereunder.

            (b) The Company hereby appoints the Lender the Company's
attorney-in-fact, with full authority in the place and stead of the Company and
in the name of the Company or otherwise, to act from time to time after the
occurrence and during the continuance of an Event of Default in the Lender's
reasonable discretion to take any action and to execute any instrument which the
Lender may deem necessary or advisable to accomplish the purposes of this
Agreement.

            13. TRANSFER BY THE COMPANY. The Company will not sell or otherwise
dispose of, grant any option with respect to, or mortgage, pledge or otherwise
encumber any of the Collateral or any interest therein except in accordance with
the terms of this Agreement, the Purchase Agreement and the other Transaction
Documents.

            14. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY. (a)
The Company represents, warrants and covenants that:

            (i) it is, or at the time when pledged hereunder will be, the legal,
      beneficial and record owner of, and has (or will have) good and marketable
      title to, all Securities pledged by it hereunder, subject to no pledge,
      lien, mortgage, hypothecation, security interest, charge, option or other
      encumbrance whatsoever, except the Permitted Liens;

            (ii) it has full power, authority and legal right to pledge all the
      Securities pledged by it pursuant to this Agreement;

            (iii) all the shares of the Stock have been duly and validly issued,
      are fully paid and non-assessable and are subject to no options to
      purchase or similar rights; and

            (iv) to its knowledge, each of the Pledged Notes constitutes, or
      when executed by the obligor thereof will constitute, the legal, valid and
      binding obligation of such obligor, enforceable in accordance with its
      terms, subject to the effects of bankruptcy, insolvency, fraudulent
      conveyance, reorganization, moratorium and other similar laws relating to
      or affecting creditors' rights generally, general equitable principles
      (whether considered in a proceeding in equity or at law) and an implied
      covenant of good faith and fair dealing.

            (b) The Company covenants and agrees that it will take all
commercially reasonable steps to defend the Lender's right, title and security
interest in and to the Securities and the proceeds thereof against the claims
and demands of all persons whomsoever (other than the Lender or any Affiliate of
the Lender), except to the extent that the Board of Directors of the Company
determines that the value of such Security is immaterial in light of the costs
of defense or such action is not otherwise in the best interests of the Company;
and the Company covenants and agrees that it will have like title to and right
to pledge any other property at any time hereafter pledged to the Lender as
Collateral hereunder and will likewise take all reasonable steps to defend the
right thereto and security interest therein of the Lender and the other Lender,
except to the extent that the Board of Directors of the Company determines that
the value of such Security is immaterial in light of the costs of defense or
such action is not otherwise in the best interests of the Company.

            (c) The Company covenants and agrees that it will take no action in
connection with this Agreement which would violate or be inconsistent with any
of the terms of any Transaction Document, or which would have the effect of
impairing the position or interests of the Lender or any other Lender under any
Transaction Document except as permitted by the Purchase Agreement or any other
Transaction Document.

            15. COMPANY'S OBLIGATIONS ABSOLUTE, ETC. The obligations of the
Company under this Agreement shall be absolute and unconditional and shall
remain in full force and effect without regard to, and shall not be released,
suspended, discharged, terminated or otherwise affected by, any circumstance or
occurrence whatsoever, including, without limitation:

            (i) any renewal, extension, amendment or modification of, or
      addition or supplement to or deletion from any of the Transaction
      Documents, or any other instrument or agreement referred to therein, or
      any assignment or transfer of any thereof;

            (ii) any waiver, consent, extension, indulgence or other action or
      inaction under or in respect of any such agreement or instrument or this
      Agreement;

            (iii) any furnishing of any additional security to the Lender or its
      assignee or any acceptance thereof or any release of any security by the
      Lender or its assignee;

            (iv) any limitation on any party's liability or obligations under
      any such instrument or agreement or any invalidity or unenforceability, in
      whole or in part, of any such instrument or agreement or any term thereof;
      or

            (v) except to the extent required by mandatory controlling
      provisions of law, any bankruptcy, insolvency, reorganization,
      composition, adjustment, dissolution, liquidation or other like proceeding
      relating to the Company or any Subsidiary of the Company, or any action
      taken with respect to this Agreement by any trustee or receiver, or by any
      court, in any such proceeding, whether or not the Company shall have
      notice or knowledge of any of the foregoing.

            16. NOTICES, ETC. Except as otherwise expressly provided herein, all
notices and other communications hereunder shall be in writing and otherwise in
accordance with the terms and provisions of the Purchase Agreement.

            17. WAIVER; AMENDMENT. None of the terms and conditions of this
Agreement may be amended, changed, waived, modified or varied in any manner
whatsoever unless in writing duly signed by the Lender.

            18. MISCELLANEOUS. This Agreement shall create a continuing security
interest in the Collateral and shall (i) remain in full force and effect,
subject to release and/or termination by the Lender, (ii) be binding upon the
Company, its successors and assigns, and (iii) inure, together with the rights
and remedies of the Lender hereunder, to the benefit of the Lender, and its
respective successors, transferees and assigns. This Agreement shall be
construed in accordance with and governed by the law of the State of California.
The headings of the several sections and subsections in this Agreement are for
purposes of reference only and shall not limit or define the meaning hereof.
This Agreement may be executed in any number of counterparts, each of which
shall be an original, but all of which together shall constitute one instrument.
In the event that any provision of this Agreement shall prove to be invalid or
unenforceable, such provision shall be deemed to be severable from the other
provisions of this Agreement which shall remain binding on all parties hereto.

            19. WAIVER OF JURY TRIAL. The Company hereby irrevocably waives all
right to a trial by jury in any action, proceeding or counterclaim arising out
of or relating to this Agreement or the transactions contemplated hereby.

            20. RECOURSE. This Agreement is made with full recourse to the
Company and pursuant to and upon all the representations, warranties, covenants
and agreements on the part of the Company contained herein and in the other
Transaction Documents and otherwise in writing in connection herewith or
therewith.
<PAGE>

            IN WITNESS WHEREOF, the Company and the Lender have caused this
Agreement to be executed and delivered by their duly authorized officers as of
the date first above written.

                                       GROUP 1 SOFTWARE, INC.

                                       By: /s/ Mark D. Funston
                                           -----------------------------------
                                           Name:   Mark D. Funston
                                           Title:  Chief Executive Officer

                                       SAGENT TECHNOLOGY, INC.

                                       By: /s/ Andre Boisvert
                                           -----------------------------------
                                           Name:   Andre Boisvert
                                           Title:  Chairman and CEO

<PAGE>

                                                                         ANNEX A
                                                                Pledge Agreement

                              LIST OF SUBSIDIARIES
                              --------------------

Domestic Subsidiaries
---------------------

Qualitative Marketing Software, Inc., a Delaware corporation

Material Foreign Subsidiaries
-----------------------------

Sagent Technology Japan KK

Sagent France, S.A.

Sagent Technology GmbH

Sagent UK Ltd.

Foreign Subsidiaries
--------------------

Sagent (Asia Pacific) Pte. Ltd.

Sagent Technology Australia

Sagent Benelux Region

Sagent Technology (Canada), Inc.

Sagent de Mexico

<PAGE>

                                                                         ANNEX B
                                                                Pledge Agreement

                                  LIST OF STOCK
                                  -------------

Sagent Technology, Inc. owns 1,000 shares of Qualitative Marketing Software,
Inc. common stock which constitutes a 100% ownership interest of such company.

Sagent Technology, Inc. owns 200 shares of Sagent Technology Japan KK common
stock which constitutes a 100% ownership interest of such company.

Sagent Technology, Inc. owns equity securities of Sagent (Asia Pacific) Pte.
Ltd. which constitute a 100% ownership interest of such company.

Sagent Technology, Inc. owns equity securities of Sagent Technology Australia
which constitute a 100% ownership interest of such company.

Sagent Technology, Inc. owns equity securities of Sagent Benelux Region which
constitute a 100% ownership interest of such company.

Sagent Technology, Inc. owns equity securities of Sagent Technology (Canada),
Inc. which constitute a 100% ownership interest of such company.

Sagent Technology, Inc. owns equity securities of Sagent France, S.A. which
constitute a 100% ownership interest of such company.

Sagent Technology, Inc. owns equity securities of Sagent Technology GmbH which
constitute a 100% ownership interest of such company.

Sagent Technology, Inc. owns equity securities of Sagent de Mexico which
constitute a 100% ownership interest of such company.

Sagent Technology, Inc. owns equity securities of Sagent UK Ltd. which
constitute a 100% ownership interest of such company.

Sagent Technology, Inc. owns equity securities of Responsys, Inc. which
constitute a 0.1699% ownership interest of such company.

<PAGE>

                                                                         ANNEX C
                                                                Pledge Agreement

                                  LIST OF NOTES
                                  -------------

Intercompany Revolving Credit Note by and between the Company and Sagent
Technology Japan KK dated November 4, 2002.

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