Document:

Amendment Nos 2&3 to Credit Agreement between Silicon Valley Bank & the Company

 Exhibit 10.8 
  
 AMENDMENT NO. 2 
 TO 
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
  
 THIS AMENDMENT NO. 2 TO AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this 25 day of May, 2004, by and between
SABA SOFTWARE, INC., a Delaware corporation (“Borrower”), and SILICON VALLEY BANK,
(“Bank”). Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below). 
  
 RECITALS 
  
 A. Borrower and Bank have entered into that certain Amended and Restated Loan and Security Agreement dated as of October 31, 2003, as amended by
that certain Amendment No. 1 to Amended and Restated Loan and Security Agreement dated as of February 10, 2004 (as may be further amended, restated, or otherwise modified, the “Loan Agreement”), pursuant to which the Bank has
agreed to extend and make available to Borrower certain advances of money. 
  
 B. Borrower desires that Bank amend the Loan Agreement upon the terms and conditions more fully set forth herein. 
  
 C. Subject to the representations and warranties of Borrower herein and upon the terms and conditions set forth in this Amendment, Bank is willing
to so amend the Loan Agreement. 
  
 AGREEMENT

  
 NOW, THEREFORE, in consideration of the foregoing Recitals
and intending to be legally bound, the parties hereto agree as follows: 
  
 1. AMENDMENTS TO LOAN AGREEMENT. 
  
 1.1 Section 2.1.1(a) (Revolving Advances). Section 2.1.1(a) of the Loan Agreement is amended in its entirety by replacing the text thereof
with the following: 
  
 (a) Bank will make
Advances in an amount (the “Formula Revolving Line Advance Amount”) not exceeding the lesser of (i) the Committed Revolving Line or (ii) the Borrowing Base minus the amount of all outstanding Letters of Credit (including drawn but
unreimbursed Letters of Credit), minus the FX Reserve. If Borrower has received Advances in an amount equal to the Formula Revolving Line Advance Amount (collectively, “Formula Advances”), Bank shall make additional Advances in
excess of the Borrowing Base pursuant to the terms hereof in an amount (the “Non-Formula Revolving Line Advance Amount”) not exceeding the lesser of (x) (A) Three Million Dollars ($3,000,000) prior to June 1, 2004, or (B) One Million Five
Hundred Thousand Dollars ($1,500,000) on or after June 1, 2004, so long as Borrower meets the Minimum Cash Requirement or (y) the Committed Revolving Line minus the Formula Revolving Line Advance Amount (collectively, “Non-Formula
Advances”). On June 1, 2004, Borrower shall repay amounts necessary so that the outstanding principal amount of the 

 Non-Formula Advances does not exceed $1,500,000. If, at any time on or after June 1, 2004, Borrower does
not meet the Minimum Cash Requirement, the Non-Formula Revolving Line Advance Amount shall immediately be reduced to zero, and Borrower shall pay all Non-Formula Advances and accrued interest thereon in full. Amounts borrowed under this Section may
be repaid and reborrowed during the term of this Agreement subject to the terms of Section 2.1.6. 
  
 1.2 Section 6.7 (Borrower’s Deposit and Investment Accounts). Section 6.7 of the Loan Agreement is amended in its entirety by replacing
the text thereof with the following: 
  
 6.7 Borrower’s
Deposit Accounts. 
  
 From the Second
Amendment Effective Date until November 25, 2004, Borrower will maintain an amount of not less than $4,000,000 of its cash and cash equivalents in a deposit account and/or money market account at Bank. 
  
 If Borrower fails to comply with the terms of this Section
6.7 at any time during the period commencing on (a) the Second Amendment Effective Date until August 25, 2004, Borrower shall pay Bank $10,000 on the date such non-compliance occurs, or (b) August 25, 2004, until November 25, 2004, Borrower shall
pay Bank $5,000 on the date such non-compliance occurs. 
  
 1.3
Section 6.8 (Financial Covenant). Section 6.8 of the Loan Agreement is amended in its entirety by replacing the text thereof with the following: 
  
 6.8 Financial Covenant. 
  
 Borrower shall have a minimum of (a) $6,000,000 in cash and cash equivalents (net of Credit Extensions) on deposit at Bank and/or
Bank’s affiliates at all times, and (b) $8,000,000 in cash and cash equivalents (net of Credit Extensions) on its balance sheet at each fiscal quarter end. 
  

1.4 Section 13.1 (Definitions). Section 13.1 is amended in the following manner: 
  
 (a) The following definition is amended in its entirety and replaced with the following: 
  

 2 

 “Committed Revolving Line” is Bank’s commitment to make Advances of
up to $3,500,000. 
  
 (b) The following new definitions
are inserted in Section 13.1 in their proper alphabetical order: 
  
 “Minimum Cash Requirement” means Borrower has a minimum of (a) $7,000,000 in cash and cash equivalents (net of Credit Extensions) on deposit at Bank and/or Bank’s affiliates at all times, and (b)
$9,000,000 in cash and cash equivalents (net of Credit Extensions) on its balance sheet at each fiscal quarter end. 
  
 “Second Amendment Effective Date” means May 25, 2004. 
  
 1.5 Exhibit D, “Compliance Certificate” of the Loan Agreement is hereby amended by deleting it in
its entirety and replacing it with Exhibit A attached hereto. 
  
 2. BORROWER’S REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants that: 
  
 (a) immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan
Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (ii) no Event
of Default has occurred and is continuing; 
  
 (b)
Borrower has the corporate power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
  
 (c) the certificate of incorporation, bylaws and other organizational documents of Borrower delivered to Bank on the
Closing Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 
  
 (d) the execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as
amended by this Amendment, have been duly authorized by all necessary corporate action on the part of Borrower; 
  
 (e) this Amendment has been duly executed and delivered by the Borrower and is the binding obligation of Borrower, enforceable against it in
accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’
rights; and 
  
 (f) as of the date hereof, it has no
defenses against the obligations to pay any amounts under the Obligations. Borrower acknowledges that Bank has acted in good 
  

 3 

 faith and has conducted in a commercially reasonable manner its relationships with Borrower in connection with this
Amendment and in connection with the Loan Documents. 
  
 Borrower
understands and acknowledges that Bank is entering into this Amendment in reliance upon, and in partial consideration for, the above representations and warranties, and agrees that such reliance is reasonable and appropriate. 
  
 3. LIMITATION. The amendments set forth
in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a waiver or modification of any other term or condition of the Loan Agreement or of any other instrument or agreement referred to therein or to prejudice any
right or remedy which Bank may now have or may have in the future under or in connection with the Loan Agreement or any instrument or agreement referred to therein; or (b) to be a consent to any future amendment or modification or waiver to any
instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof. Except as expressly amended hereby, the Loan Agreement shall continue in full force and effect. 
  
 4. EFFECTIVENESS. This Amendment shall
become effective upon the satisfaction of all the following conditions precedent: 
  
 4.1 Amendment. Borrower and Bank shall have duly executed and delivered this Amendment to Bank. 
  
 4.2 Payment of Amendment Fee. Borrower shall have paid Bank an amendment fee equal to $5,000. 
  
 4.3 Payment of Bank Expenses. Borrower shall have paid all Bank
Expenses (including all reasonable attorneys’ fees and reasonable expenses) incurred through the date of this Amendment. 
  
 5. COUNTERPARTS. This Amendment may be signed in any number of counterparts, and by different parties hereto in
separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument. All counterparts shall be deemed an original of this Amendment. 
  
 6. INTEGRATION. This Amendment and any documents executed in connection herewith or
pursuant hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, offers and negotiations, oral or written, with respect thereto and no extrinsic evidence
whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment; except that any financing statements or other agreements or instruments filed by Bank with respect to Borrowers shall remain in full force and
effect. 
  
 7. GOVERNING LAW;
VENUE. THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in
Santa Clara County, California. 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first
written above. 
  

					
	BORROWER:	 	 	 	SABA SOFTWARE, INC.
	 	 	 	 	 a Delaware corporation

			
	 	 	 	 	 By:                                      
                                        
                  

	 	 	 	 	 Printed
Name:                                       
                                    

	 	 	 	 	 Title:                                     
                                        
               

  

					
	BANK:	 	 	 	SILICON VALLEY BANK
			
	 	 	 	 	 By:                                      
                                        
                  

	 	 	 	 	 Printed
Name:                                       
                                    

	 	 	 	 	 Title:                                     
                                        
               

 Exhibit A 
 EXHIBIT D 
  
 COMPLIANCE
CERTIFICATE 
  

	TO:	 	SILICON VALLEY BANK 

	    	 	3003 Tasman Drive 

	    	 	Santa Clara, CA 95054 

  

	FROM:	 	SABA SOFTWARE, INC. 

	    	 	2400 Bridge Parkway 

	    	 	Redwood Shores, CA 94065 

  
 The undersigned authorized officer of SABA SOFTWARE, INC. (“Borrower”) certifies that under the terms and conditions of the Amended and Restated
Loan and Security Agreement between Borrower and Bank (as further amended, restated, or otherwise modified from time to time, the “Agreement”), (i) Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below and (ii) all representations and warranties in the Agreement are true and
correct in all material respects on this date. Attached are the required documents supporting the certification. In addition, the undersigned authorized officer of Borrower certifies that Borrower and each of its Subsidiaries (x) has timely filed
all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under Generally Accepted Accounting Principles (“GAAP”) and (y) does not have any
legal actions pending or threatened against Borrower or any Subsidiary which Borrower has not previously notified in writing to Bank. The Officer certifies that these are prepared in accordance with GAAP consistently applied from one period to the
next except as explained in an accompanying letter or footnotes. The Officer acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that
compliance is determined not just at the date this certificate is delivered. 
  
 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

							
	 Reporting Covenant

	  	 Required

	  	 Complies

	 Monthly financial statements + CC
	  	 Monthly within 30 days
	  	Yes	  	No
	 Annual (Audited)
	  	 FYE within 120 days
	  	Yes	  	No
	 8-K except with respect to certifications
	  	 Within 5 days after filing with SEC
	  	Yes	  	No
	 A/R & A/P Agings
	  	 Monthly within 20 days
	  	Yes	  	No
	 Borrowing Base Certificate
	  	 Monthly within 20 days
	  	Yes	  	No

  

											
	 Financial Covenant

	  	Required

	  	Actual

	  	Complies

	 Cash and cash equivalents (net of Credit Extensions) (tested on the last day of each February, May, August, and November fiscal quarter
end)
	  	$	8,000,000	  	$	            	  	Yes	  	No
					
	 Cash and cash equivalents (net of Credit Extensions) on deposit at Bank and/or Bank’s affiliates (to be maintained at all
times)
	  	$	6,000,000	  	$	            	  	Yes	  	No

  
 [continued on following
page] 

							
	 Comments Regarding Exceptions: See Attached.
	 	 	 	 BANK USE ONLY

			
	 Sincerely,
	 	 	 	 Received by:
                                        
                                     

	 	 	 	 	AUTHORIZED SIGNER
			
	 SABA SOFTWARE, INC.
	 	 	 	 
			
	                                       
                                        
                         
	 	 	 	 
	 SIGNATURE
	 	 	 	 Date:
                                        
                                        
           

			
	                                       
                                        
                         
	 	 	 	 Verified:
                                        
                                        
    

	 TITLE
	 	 	 	AUTHORIZED SIGNER
			
	                                       
                                        
                         
	 	 	 	 Date:
                                        
                                        
           

	 DATE
	 	 	 	 
	 	 	 	 	 Compliance
Status:                                       
             Yes    No

  

 2 

 AMENDMENT NO. 3 
 TO 
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
  
 THIS AMENDMENT NO. 3
TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into
this 20th day of August, 2004, by and between SABA SOFTWARE, INC., a Delaware corporation (“Borrower”), and SILICON VALLEY
BANK (“Bank”). Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below). 
  
 RECITALS 
  
 A. Borrower and Bank have entered into that certain Amended and
Restated Loan and Security Agreement dated as of October 31, 2003, as amended by that certain Amendment No. 1 to Amended and Restated Loan and Security Agreement dated as of February 10, 2004, as further amended by that certain Amendment No. 2 to
Amended and Restated Loan and Security Agreement dated as of May 25, 2004 (as may be further amended, restated, or otherwise modified, the “Loan Agreement”), pursuant to which the Bank has agreed to extend and make available
to Borrower certain advances of money. 
  
 B. Borrower
desires that Bank amend the Loan Agreement upon the terms and conditions more fully set forth herein. 
  
 C. Subject to the representations and warranties of Borrower herein and upon the terms and conditions set forth in this Amendment, Bank is willing
to so amend the Loan Agreement. 
  
 AGREEMENT

  
 NOW, THEREFORE, in consideration of the foregoing Recitals
and intending to be legally bound, the parties hereto agree as follows: 
  
 1. AMENDMENTS TO LOAN AGREEMENT. 
  
 1.1 Section 2.1.1(a) (Revolving Advances). Section 2.1.1(a) is amended in its entirety by replacing the text thereof with the following:

  
 (a) Bank will make Advances in an amount not
exceeding the Committed Revolving Line minus the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), minus the FX Reserve, minus all amounts for services used under the Cash
Management Services Sublimit. Amounts borrowed under this Section may be repaid and reborrowed during the term of this Agreement subject to the terms of Section 2.1.7. 
  
 1.2 Section 2.1.2 (Letters of Credit Sublimit). The first sentence of Section 2.1.2 is amended in its entirety
by replacing the text thereof with the following: 
  
 Bank will issue Letters of Credit (each a “Letter of Credit” and collectively, the “Letters of Credit”) for Borrower’s account not exceeding the lesser of Three Million 

 Dollars ($3,000,000) or the Committed Revolving Line minus the outstanding principal balance of
the Advances minus the FX Reserve minus all amounts for services used under the Cash Management Services Sublimit; however, the face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) may not
exceed the Committed Revolving Line. 
  
 1.3 Section 2.1.3
(Foreign Exchange Sublimit). Section 2.1.3 is amended in its entirety by replacing the text thereof with the following: 
  
 If there is availability under the Committed Revolving Line, then Borrower may enter into foreign exchange forward contracts with the Bank
under which Borrower commits to purchase from or sell to Bank a set amount of foreign currency more than one business day after the contract date (the “FX Forward Contract”). Bank will subtract 10% of each outstanding FX Forward Contract
from the foreign exchange sublimit which is a maximum of the lesser of Three Million Dollars ($3,000,000) or the Committed Revolving Line minus the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of
Credit) minus the amount of the outstanding principal balance of the Advances minus all amounts for services used under the Cash Management Services Sublimit (the “FX Reserve”). The total FX Forward Contracts at any one time
may not exceed ten times the amount of the FX Reserve. Bank may terminate the FX Forward Contracts if an Event of Default occurs and is continuing. 
  
 1.4 The existing Sections 2.1.4, 2.1.5, and 2.1.6 shall be re-numbered as Sections 2.1.5, 2.1.6, and
2.1.8, respectively, and the following shall be added as Section 2.1.4 (Cash Management Services): 
  
 Borrower may use amounts up to the lesser of Three Million Dollars ($3,000,000) or the Committed Revolving Line minus the sum of
the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), the FX Reserve, and the sum of the outstanding principal balance of the Advances (the “Cash Management Services Sublimit”) for
Bank’s Cash Management Services, which may include merchant services, direct deposit of payroll, business credit card, and check cashing services identified in various cash management services agreements related to such services (the “Cash
Management Services”). Such aggregate amounts utilized under the Cash Management Services Sublimit will at all times reduce the amount otherwise available to be borrowed under the Committed Revolving Line. Any amounts Bank pays on behalf of
Borrower or any amounts that are not paid by Borrower for any Cash Management Services will be treated as Advances under the Committed Revolving Line and will accrue interest at the rate for Advances. 
  
 1.5 Section 2.1.7 (Equipment Facility 3). The following shall be
inserted as Section 2.1.7: 
  
 2.1.7 Equipment Facility
3. 
  
 (a) Subject to the terms and
conditions of this Agreement, Bank agrees to lend to Borrower, from time to time prior to the Equipment Facility 3 Commitment Termination Date, equipment advances (each an “Equipment Facility 3 Advance” and 
  

 2 

 collectively the “Equipment Facility 3 Advances”) in an aggregate amount not to exceed the
Committed Equipment Facility 3 Line. When repaid, the Equipment Facility 3 Advances may not be re-borrowed. The proceeds of the Equipment Facility 3 Advances will be used solely to reimburse Borrower for the purchase of (i) new Eligible Equipment
Facility 3 Equipment purchased within 90 days of the Equipment Facility 3 Advance and (ii) used Eligible Equipment Facility 3 Equipment purchased within 180 days of the Equipment Facility 3 Advance; provided, however, that used Eligible
Equipment Facility 3 Equipment purchased more than 90 days earlier, but not more than 180 days earlier, may be financed only with the first Equipment Facility 3 Advance. Bank’s obligation to lend hereunder shall terminate on the earlier of (i)
the occurrence and continuance of an Event of Default, or (ii) the Equipment Facility 3 Commitment Termination Date. 
  
 (b) To obtain an Equipment Facility 3 Advance, Borrower must notify Bank (the notice is irrevocable) by facsimile no later than 12:00 p.m.
Pacific time 5 Business Days before the day on which the Equipment Facility 3 Advance is to be made. The notice in the form of Exhibit B (Payment/Advance Form) must be signed by a Responsible Officer or designee and include a copy of the invoice(s)
for the Eligible Equipment Facility 3 Equipment being financed. Borrower shall also complete, execute, and deliver to Bank a Loan Supplement - Equipment Facility 3 Advances substantially in the form of Exhibit F on the Funding Date. 
  
 (c) If Borrower satisfies the conditions of each Equipment
Facility 3 Advance specified in this Section 2.1.7, Bank will disburse such Equipment Facility 3 Advance by internal transfer to Borrower’s deposit account with Bank. Each Equipment Facility 3 Advance may not exceed (i) 100% of the Original
Stated Cost for Equipment Facility 3 Advances for the financing of Eligible Equipment Facility 3 Equipment purchased within 90 days of the Equipment Facility 3 Advance and (ii) 75% of the Original Stated Cost for Equipment Facility 3 Advances for
the financing of Eligible Equipment Facility 3 Equipment purchased more than 90 days but less than 180 days before the relevant Equipment Facility 3 Advance. 
  

(d) Bank’s obligation to lend the undisbursed portion of the Committed Equipment Facility 3 Line will terminate if, in Bank’s
sole discretion, there has been a material adverse change in the general affairs, management, results of operation, condition (financial or otherwise) or the prospects of Borrower, whether or not arising from transactions in the ordinary course of
business, or there has been any material adverse deviation by Borrower from the most recent business plan of Borrower presented to and accepted by Bank prior to the Equipment Facility 3 Commitment Termination Date. 
  
 1.6 Section 2.1.8 (Overadvances). Section 2.1.8 is amended in
its entirety by replacing the text thereof with the following: 
  
 If Borrower’s Obligations under Sections 2.1.1(a), 2.1.2, 2.1.3, or 2.1.4 exceed the Committed Revolving Line, Borrower must immediately pay Bank the excess. 
  

 3 

 1.7 Section 2.2 (Interest Rate, Payments). 
  
 (a) The first sentence of Section 2.2(a) is amended in its
entirety by replacing the text thereof with the following: 
  
 Advances accrue interest on the outstanding principal balance at a per annum rate equal to 150 basis points (1.50%) above the Prime Rate. 
  
 (b) Sections 2.2(b), 2.2(c), 2.2(d), 2.2(e), 2.2(f), 2.2(g), and 2.2(h) are hereby amended in their
entirety by replacing the text thereof with the following: 
  
 (b) Equipment Advances, Equipment Facility 2 Advances Interest Rates, Equipment Facility 3 Interest Rates. Equipment Advances accrue interest on the outstanding principal balance at a per annum rate equal to the
Option 2 Basic Rate. Equipment Facility 2 Advances accrue interest on the outstanding principal balance at a per annum rate equal to (at Borrower’s option) the Option 3 Basic Rate or the Option 4 Basic Rate. Equipment Facility 3 Advances accrue
interest on the outstanding principal balance at a per annum rate equal to (at Borrower’s option) the Option 5 Basic Rate or the Option 6 Basic Rate. After an Event of Default, Obligations accrue interest at 5 percentage points above the rate
effective immediately before the Event of Default. The interest rate on the Option 3 Loans and Option 5 Loans increases or decreases when the Prime Rate changes. The interest rate on the Option 2 Loans and Option 4 Loans were, and Option 6 Loans
will be, determined on the Funding Date and shall remain fixed for the life of such loan. Interest is computed on a 360 day year for the actual number of days elapsed. 
  
 (c) Principal and Interest Payments On Payment Dates. Borrower will pay interest due on all Advances under
the Committed Revolving Line on the first Business Day of each month. For Equipment Facility 2 Advances bearing the Option 3 Basic Rate (“Option 3 Loans”), and for Equipment Facility 3 Advances bearing the Option 5 Basic Rate (“Option
5 Loans”) or the Option 6 Basic Rate (“Option 6 Loans”), Borrower will make 36 equal monthly installments of principal plus accrued interest for each Option 3 Loan, Option 5 Loan, or Option 6 Loan, as applicable, calculated (i) by
multiplying the Option 3 Basic Rate by the outstanding Loan Amount for such Equipment Facility 2 Advances plus principal due as of such Payment Date or (ii) by multiplying the Option 5 Basic Rate or Option 6 Basic Rate, as applicable, by the
outstanding Loan Amount for such Equipment Facility 3 Advances plus principal due as of such Payment Date. For Equipment Advances bearing interest at the Option 2 Basic Rate (the “Option 2 Loans”) and Equipment Facility 2 Advances bearing
interest at the Option 4 Basic Rate (“Option 4 Loans”), Borrower will make payments monthly of principal in advance and accrued interest for each Option 2 Loan and Option 4 Loan, calculated by multiplying the applicable Loan Factor by the
Loan Amount for such Equipment Advance or Equipment Facility 2 Advance, as applicable, as of such Payment Date (payments on the Option 2 Loans, the Option 3 Loans, the Option 4 Loans, the Option 5 Loans, and the Option 6 Loans are collectively
referred to herein as “Scheduled Payments”). Scheduled Payments are due on the first Business Day of the month following the Funding Date (or commencing on the Funding Date if the Funding Date is the first Business Day of the month) with
respect to such Equipment Advance, Equipment Facility 2 Advance, or 
  

 4 

 Equipment Facility 3 Advances and continuing thereafter during the Equipment Loan Repayment Period on the
first Business Day of each calendar month (each a “Payment Date”). All unpaid principal and accrued interest is due and payable in full on the last Payment Date with respect to such Equipment Advance, Equipment Facility 2 Advance, or
Equipment Facility 3 Advance. Payments received after 12:00 noon Pacific time are considered received at the opening of business on the next Business Day. An Equipment Advance, Equipment Facility 2 Advance, or Equipment Facility 3 Advance may only
be prepaid in accordance with Sections 2.2(e), 2.2 (f), 2.2 (g), and 2.2 (h). 
  
 (d) Interim Payment. In addition to the Scheduled Payments, on the Funding Date for each Equipment Facility 2 Advance or Equipment Facility 3 Advance (unless the Funding Date is the first Business Day of the month)
Borrower shall pay to Bank the projected interest to accrue from the Funding Date to the first Payment Date, pursuant to clause (b) of this Section. 
  
 (e) Prepayment Upon an Event of Loss. If any Financed Equipment is subject to an Event of Loss and Borrower is required to or elects to
prepay the Equipment Advance, Equipment Facility 2 Advance, or Equipment Facility 3 Advance with respect to such Financed Equipment pursuant to Section 6.6, then such Equipment Advance, Equipment Facility 2 Advance, or Equipment Facility 3 Advance,
as applicable, shall be prepaid to the extent and in the manner provided in such section. 
  
 (f) Mandatory Prepayment Upon an Acceleration. If the Equipment Advances, Equipment Facility 2 Advances, Equipment Facility 3 Advances,
and the Advances are accelerated following the occurrence of an Event of Default (other than following an Event of Loss), then Borrower will immediately pay to Bank (i) all accrued and unpaid Scheduled Payments (including principal and interest)
with respect to each Equipment Advance, Equipment Facility 2 Advance, and Equipment Facility 3 Advance (ii) all remaining Scheduled Payments (including principal and interest unpaid) in accordance with the terms of Section 2.2(g) and 2.2(h) below,
(iii) all principal and accrued interest with respect to the Advances, and (iv) all other sums, if any, that shall have become due and payable with respect to any Equipment Advance, Equipment Facility 2 Advance, Equipment Facility 3 Advance, or
Advance. 
  
 (g) Permitted Prepayment of Option 3
Loans and Option 5 Loans. Borrower shall have the option to prepay all or any portion of the Option 3 Loans and Option 5 Loans advanced by Bank under this Agreement, without penalty or premium, provided no Event of Default has occurred and is
continuing and Borrower (i) provides written notice to Bank of its election to prepay the Option 3 Loans or Option 5 Loans, as applicable, at least thirty (30) days prior to such prepayment, and (ii) pays, on the date of the prepayment (A) all due
but unpaid Scheduled Payments as of the date of prepayment (including principal and interest) with respect to each Option 3 Loan or Option 5 Loan, as applicable, being prepaid and (B) all other sums, if any, that shall have become due and payable
hereunder relating to such Option 3 Loans or Option 5 Loans, as applicable, with respect to this Agreement. 
  

 5 

 (h) Permitted Prepayment of Option 2 Loans, Option 4 Loans, and Option 6 Loans. Borrower
shall have the option to prepay all, but not less than all, of each of the Option 2 Loans, Option 4 Loans, and Option 6 Loans advanced by Bank under this Agreement, provided no Event of Default has occurred and is continuing and Borrower (i)
provides written notice to Bank of its election to prepay the Option 2 Loans, Option 4 Loans, or Options 6 Loans, as applicable, at least thirty (30) days prior to such prepayment, and (ii) pays, on the date of the prepayment (A) all outstanding
principal with respect to all of the Option 2 Loans, Option 4 Loans, or Option 6 Loans, as applicable, (B) all unpaid accrued interest with respect to all of the Option 2 Loans, Option 4 Loans, or Option 6 Loans, as applicable, and (C) all other
sums, if any, that shall have become due and payable hereunder relating to such Option 2 Loans, Option 4 Loans, or Option 6 Loans, as applicable, with respect to this Agreement. 
  
 1.8 Section 2.4 (Fees). Section 2.4 is hereby amended by deleting Sections 2.4(b) and 2.4(d)
thereof in their entirety. 
  
 1.9 Section 2.5 (Termination of
Commitment). Section 2.5 is amended in its entirety by replacing the text thereof with the following: 
  
 So long as there are no outstanding Advances, Letters of Credit, FX Forward Contracts, Equipment Advances, Equipment Facility 2 Advances,
or Equipment Facility 3 Advances outstanding, Borrower may at any time with 5 days written notice to Bank, terminate the Committed Revolving Line, the Committed Equipment Facility 2 Line, and the Committed Equipment Facility 3 Line. Upon
Borrower’s payment in full of all Obligations then due and payable, this Agreement shall terminate; provided, however, that payments relating to Obligations arising out of Equipment Advances, Equipment Facility 2 Advances, and Equipment
Facility 3 Advances shall be in accordance with the terms of Sections 2.2(g) and 2.2(h). 
  
 1.10 Section 5.2 (Collateral). Section 5.2 is amended in its entirety by replacing the text thereof with the following: 
  
 Borrower has good title to the Collateral, free of Liens except Permitted Liens. The Accounts are bona fide
and existing obligations created pursuant to a contract between the Borrower or a Subsidiary of Borrower and its customers. All Inventory is in all material respects of good and marketable quality, free from material defects. Borrower is the sole
owner of its Intellectual Property. Except as disclosed in periodic reports filed with the Securities and Exchange Commission, no claim has been made that any part of the Intellectual Property violates the rights of any third party, except to the
extent such claim could not reasonably be expected to cause a Material Adverse Change. 
  
 1.11 Section 6.2 (Financial Statements, Reports, Certificates). Section 6.2(a) thereof is amended in its entirety by replacing the text thereof with the text below; Section 6.2(b) thereof is
amended in its entirety by replacing the text thereof with “intentionally omitted”; and Section 6.2(c) thereof is amended by replacing “30 days” with “45 days”. 
  
 (a) Borrower will deliver to Bank: (i) as soon as available,
but no later than 45 days after the last day of each month, a company prepared consolidated balance sheet 
  

 6 

 and income statement covering Borrower’s consolidated operations during the period, in a form and
certified by a Responsible Officer acceptable to Bank; (ii) as soon as available, but no later than 120 days after the last day of Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied,
together with an unqualified opinion on the financial statements from an independent certified public accounting firm reasonably acceptable to Bank; (iii) within 5 days of filing, copies of (1) all statements, reports and notices made available to
Borrower’s security holders or to any holders of Subordinated Debt and (2) all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission (such Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange
Commission, collectively, “SEC Filings”) (however, Borrower shall not have to deliver copies of SEC Filings that are otherwise publicly available through the Securities and Exchange Commission’s EDGAR system); (iv) as soon as
available, but no later than 45 days after the end of each fiscal year, a one (1) year (prepared on a quarterly basis) financial projections of Borrower on a consolidated basis, including a balance sheet and statements of income and cash flows and
showing projected operating revenues, expenses and debt service of Borrower on a consolidated basis; (v) a prompt report of any legal actions pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower
or any Subsidiary of $500,000 or more; and (vi) any other financial information Bank reasonably requests. 
  
 1.12 Section 6.6 (Loss; Destruction; or Damage). Section 6.6(b) is amended in its entirety by replacing the text thereof with the following:

  
 During the continuance of an Event of
Default, on or before the Payment Date after such Event of Loss for each such item of Financed Equipment subject to such Event of Loss, Borrower will, at Bank’s option, pay to Bank an amount equal to the sum of: (i) all accrued and unpaid
Scheduled Payments (with respect to such Equipment Advance, Equipment Facility 2 Advance, or Equipment Facility 3 Advance related to the Event of Loss) due prior to the next such Payment Date, (ii) all regularly Scheduled Payments (including
principal and interest), plus (iii) all other sums (other than remaining Scheduled Payments), if any, that shall have become due and payable with respect to such Equipment Advance, Equipment Facility 2 Advance, or Equipment Facility 3 Advance
including interest at the Default Rate with respect to any past due amounts. 
  
 1.13 Section 6.7 (Borrower’s Deposit and Investment Accounts). Section 6.7 is amended in its entirety by replacing the text thereof with the following: 
  
 6.7 Borrower’s Deposit Accounts. 
  
 Until the Revolving Maturity Date, Borrower will maintain an
amount of not less than $4,000,000 of its cash and cash equivalents in a deposit account and/or money market account with Bank or a Bank Affiliate. If Borrower fails to comply with the terms of this Section 6.7 at any time, Borrower shall pay to
Bank within three (3) days after the initial date such non-compliance occurs, a one-time, non-refundable fee equal to the amount set forth below for the period such non-compliance occurs (the “Deposit Fee”); provided, however, once
Borrower pays the Deposit Fee, Bank shall not require Borrower to pay another such Deposit 
  

 7 

 Fee. Notwithstanding anything to the contrary contained in this Agreement, so long as Borrower pays the
Deposit Fee as and when due, Borrower’s failure to maintain an amount of not less than $4,000,000 of its cash and cash equivalents in a deposit account and/or money market account with Bank or a Bank Affiliate shall not be deemed an Event of
Default hereunder or a breach of this Section 6.7. 
  

				
	 Period

	  	Deposit Fee

	 Third Amendment Effective Date
 until November 19, 2004
	  	$	30,000
		
	 November 20, 2004
 until February 19, 2005
	  	$	22,500
		
	 February 20, 2005, until May 19, 2005
	  	$	15,000
		
	 May 20, 2005,    
 until the Revolving Maturity Date    
	  	$	7,500

  
 1.14 Section 6.8
(Financial Covenant). Section 6.8 is amended in its entirety by replacing the text thereof with the following: 
  
 6.8 Financial Covenants. 
  
 (a) Borrower shall have a minimum of $7,500,000 in cash and cash equivalents (net of Credit Extensions) on deposit at Bank and/or
Bank’s affiliates at all times. 
  
 (b) At
each date that is a quarter-end, Borrower and its Subsidiaries shall have achieved total revenue for the quarter period ending on such date equal to or greater than the amounts set forth in below opposite each time period set forth below:

  

				
	 Period

	  	Minimum Total Revenue

	 For the fiscal quarter ended 8/31/04
	  	$	8,800,000
	 For the fiscal quarter ending 11/30/04
	  	$	9,500,000
	 For the fiscal quarter ending 2/28/05
	  	$	10,500,000
	 For the fiscal quarter ending 5/31/05
	  	$	12,000,000
	 For the fiscal quarter ending 8/31/05 and each fiscal quarter ending thereafter
	  	$	11,000,000

  
 If
Borrower meets or exceeds the minimum total revenue requirements for any three (3) consecutive quarters, Borrower shall no longer be required to maintain such minimum total revenue, and this Section 6.8(b) shall no longer be applicable. 

 
 1.15 Section 9.1(b) is amended in its entirety by replacing the
text thereof with the following: 
  
 (b) When an
Event of Default occurs under Section 6.8, Bank may, in its sole and absolute discretion, require all the Term Loan 1, the Equipment Advances, the 
  

 8 

 Equipment Facility 2 Advances, and the Equipment Facility 3 Advances to be secured, on terms acceptable
to Bank, by (i) certificates of deposit pledged to Bank in an amount equal to one hundred percent (100%) of amounts outstanding under the Term Loan 1, the Equipment Advances, the Equipment Facility 2 Advances, and the Equipment Facility 3 Advances
and/or (ii) funds held at SVB Securities and pledged to Bank in an amount equal to one hundred fifteen percent (115%) of amounts outstanding under the Term Loan 1, the Equipment Advances, the Equipment Facility 2 Advances, and the Equipment Facility
3 Advances. 
  
 1.16 Section 13.1 (Definitions). Section
13.1 is amended in the following manner: 
  
 (a) The
following definitions are amended in their entirety and replaced with the following: 
  
 “Advance” or “Advances” is a loan advance (or advances) under the Committed Revolving Line. 

 
 “Committed Revolving Line” is
Bank’s commitment to make Advances of up to $5,000,000. 
  
 “Credit Extension” is each Advance, Equipment Advance, Equipment Facility 2 Advance, Equipment Facility 3 Advance, Letter of Credit, FX Forward Contract, the Term Loan 1, or any other extension of
credit by Bank for Borrower’s benefit. 
  
 “Equipment Facility 2 Advance” is defined in Section 2.1.6. 
  
 “Financed Equipment” is any Equipment financed with an Equipment Advance, an Equipment Facility 2 Advance, or an
Equipment Facility 3 Advance. 
  
 “Funding Date” is any date on which an Equipment Advance, Equipment Facility 2 Advance, or Equipment Facility 3 Advance is made to or on account of Borrower. 
  
 “Loan Amount” is the aggregate amount of each Equipment Advance, Equipment Facility 2
Advance, or Equipment Facility 3 Advance, as applicable. 
  
 “Maturity Date” is, with respect to each Equipment Advance, Equipment Facility 2 Advance, or Equipment Facility 3 Advance, the last day of the Equipment Loan Repayment Period for such Equipment
Advance, Equipment Facility 2 Advance, or Equipment Facility 3 Advance, respectively, or if earlier, the date of acceleration of such Equipment Advance, Equipment Facility 2 Advance, or Equipment Facility 3 Advance by Bank following an Event of
Default and, with respect to the Advances, the Revolving Maturity Date. 
  
 “Original Stated Cost” is (a) the original cost to the Borrower of the item of new Equipment net of any and all freight, installation, tax or (b) the fair market value assigned to such item of used
Equipment by mutual agreement of Borrower and Bank at the time of making of the Equipment Advance, Equipment Facility 2 Advance, or Equipment Facility 3 Advance, as applicable. 
  

 9 

 “Revolving Maturity Date” is August 19, 2005. 
  
 (b) The following definitions are deleted in their entirety from
Section 13.1: Borrowing Base, Deferred Revenue, Eligible Accounts, Formula Advances, Formula Revolving Line Advance Amount, Investable Funds, Minimum Cash Requirement, Non-Formula Advance, and Non-Formula Revolving Line Advance Amount. 

 
 (c) The following new definitions are inserted in Section 13.1 in
their proper alphabetical order: 
  
 “Committed Equipment Facility 3 Line” is Bank’s commitment to make Equipment Facility 3 Advances of up to $400,000. 
  
 “Eligible Equipment Facility 3 Equipment” is new or used general purpose computer equipment, office equipment, test and
laboratory equipment, furnishings, and Other Equipment Facility 3 Equipment that complies with all of Borrower’s representations and warranties to Bank and which is acceptable to Bank in all respects and is located in the United States.

  
 “Equipment Facility 3
Advance” is defined in Section 2.1.7. 
  
 “Equipment Facility 2 Commitment Termination Date” is August 19, 2005. 
  
 “Loan Supplement - Equipment Facility 3 Advances” is attached as Exhibit F. 
  
 “Option 5 Basic Rate” is a rate of interest
equal to the per annum rate of interest (based on a year of 360 days) equal to the sum of (a) the Prime Rate plus (b) the Option 5 Loan Margin. 
  
 “Option 5 Loan” is defined in Section 2.2(c). 
  
 “Option 5 Loan Margin” is 175 basis points. 
  
 “Option 6 Basic Rate” is, a rate of
interest equal to the per annum rate of interest (based on a year of 360 days) equal to the sum of (a) the U.S. Treasury note yield to maturity for a term equal to the Treasury Note Maturity as quoted in The Wall Street Journal as of the Funding
Date, plus (b) the Option 6 Loan Margin. 
  
 “Option 6 Loan” is defined in Section 2.2(c). 
  
 “Option 6 Loan Margin” is 400 basis points. 
  
 “Other Equipment Facility 3 Equipment” is leasehold improvements, intangible property such
as transferable computer software and transferable software licenses, equipment specifically designed or manufactured for Borrower, 
  

 10 

 other intangible property, limited use property and other similar property and sales tax, freight,
maintenance, and installation costs. Unless otherwise agreed to by Bank, not more than 30% of the Eligible Equipment Facility 3 Equipment financed with the proceeds of each Equipment Facility 3 Advance shall consist of Other Equipment Facility 3
Equipment. 
  
 “Third Amendment Effective
Date” means August 20, 2004. 
  
 1.17 Exhibit B,
“Payment/Advance Form” is hereby amended by deleting it in its entirety and replacing it with Exhibit A attached hereto. 
  
 1.18 Exhibit C, “Borrowing Base Certificate” is hereby deleted it in its entirety. 
  
 1.19 Exhibit D, “Compliance Certificate” is hereby
amended by deleting it in its entirety and replacing it with Exhibit B attached hereto. 
  
 1.20 A new exhibit, Exhibit F, “Loan Supplement - Equipment Facility 3 Advances”, in the form of Exhibit C attached hereto, is hereby added. 
  
 2. BORROWER’S
REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants that: 
  
 (a) immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents are true, accurate and
complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (ii) no Event of Default has occurred and is
continuing; 
  
 (b) Borrower has the corporate power and
authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
  
 (c) the certificate of incorporation and bylaws of Borrower (collectively, “Organizational Documents”) delivered to Bank on or prior to
the Third Amendment Effective Date are true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect as of the Third Amendment Effective Date, and Borrower shall promptly deliver
to Bank any amendments, supplements, restatements or other modifications to such Organizational Documents; 
  
 (d) the execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as
amended by this Amendment, have been duly authorized by all necessary corporate action on the part of Borrower; 
  
 (e) this Amendment has been duly executed and delivered by the Borrower and is the binding obligation of Borrower, enforceable against it in
accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’
rights; and 
  

 11 

 (f) as of the date hereof, it has no defenses against the obligations to pay any amounts under
the Obligations. Borrower acknowledges that Bank has acted in good faith and has conducted in a commercially reasonable manner its relationships with Borrower in connection with this Amendment and in connection with the Loan Documents. 

 
 Borrower understands and acknowledges that Bank is entering into this
Amendment in reliance upon, and in partial consideration for, the above representations and warranties, and agrees that such reliance is reasonable and appropriate. 
  
 3. LIMITATION. The amendments set forth in this Amendment shall be limited precisely as
written and shall not be deemed (a) to be a waiver or modification of any other term or condition of the Loan Agreement or of any other instrument or agreement referred to therein or to prejudice any right or remedy which Bank may now have or may
have in the future under or in connection with the Loan Agreement or any instrument or agreement referred to therein; or (b) to be a consent to any future amendment or modification or waiver to any instrument or agreement the execution and delivery
of which is consented to hereby, or to any waiver of any of the provisions thereof. Except as expressly amended hereby, the Loan Agreement shall continue in full force and effect. 
  
 4. EFFECTIVENESS. This Amendment shall become effective upon the satisfaction of all the following
conditions precedent: 
  
 4.1 Amendment. Borrower and Bank
shall have duly executed and delivered this Amendment to Bank. 
  
 4.2 Payment of Bank Expenses. Borrower shall have paid all Bank Expenses (including all reasonable attorneys’ fees and reasonable expenses) incurred through the date of this Amendment. 
  
 5. COUNTERPARTS. This Amendment may be
signed in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument. All counterparts shall be deemed an original of this
Amendment. 
  
 6.
INTEGRATION. This Amendment and any documents executed in connection herewith or pursuant hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior
agreements, understandings, offers and negotiations, oral or written, with respect thereto and no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment; except that any financing
statements or other agreements or instruments filed by Bank with respect to Borrowers shall remain in full force and effect. 
  
 7. GOVERNING LAW; VENUE. THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California. 
  

 12 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first
written above. 
  

					
	BORROWER:	 	 	 	SABA SOFTWARE, INC.
	 	 	 	 	 a Delaware corporation

			
	 	 	 	 	 By:                                      
                                        
                  

	 	 	 	 	 Printed
Name:                                       
                                    

	 	 	 	 	 Title:                                     
                                        
               

  

					
	BANK:	 	 	 	SILICON VALLEY BANK
			
	 	 	 	 	 By:                                      
                                        
                  

	 	 	 	 	 Printed
Name:                                       
                                    

	 	 	 	 	 Title:                                     
                                        
               

 Exhibit A 
 EXHIBIT B 
  
 LOAN
PAYMENT/ADVANCE TELEPHONE REQUEST FORM 
  
 DEADLINE FOR SAME DAY
PROCESSING IS 12 NOON, P.S.T. 
  

			
	 TO: CENTRAL CLIENT SERVICE DIVISION
	 	 DATE:                                     
                                        
             

		
	 FAX#: (650) 320 - 0016
	 	 TIME:                                     
                                        
              

  

	
	 FROM: SABA SOFTWARE, INC.

	                                        
                     CLIENT NAME (BORROWER)

	
	 REQUESTED
BY:                                       
                                        
                                        
                                        
                     

	                                        
                     AUTHORIZED SIGNER’S NAME

	
	 AUTHORIZED
SIGNATURE:                                      
                                        
                                        
                                      
 

	
	 PHONE
NUMBER:                                       
                                        
                                        
                                        
                   

	
	 FROM ACCOUNT #
                                        
                              TO ACCOUNT
#                                        
                              

  

				
	 REQUESTED TRANSACTION TYPE

	  	REQUESTED DOLLAR AMOUNT

	 PRINCIPAL INCREASE (REVOLVING ADVANCE)
	  	$	                    
	 PRINCIPAL PAYMENT (REVOLVING ADVANCE ONLY)
	  	$	 
	 INTEREST PAYMENT–REVOLVING ADVANCES (ONLY)
	  	$	 
	 PRINCIPAL AND INTEREST–REVOLVING LINE (PAYMENT)
	  	$	 
	 PRINCIPAL INCREASE (OPTIONS 5 OR 6 LOAN)
	  	$	 
	 PRINCIPAL PAYMENT - OPTION 3, 5, OR 6 LOAN (ONLY)
	  	$	 
	 INTEREST PAYMENT – OPTION 3, 5, OR 6 LOAN (ONLY)
	  	$	 
	 PRINCIPAL AND INTEREST – OPTION 3, 5 OR 6 LOAN (PAYMENT)
	  	$	 

  
 OTHER
INSTRUCTIONS:                                      
                                        
                                        
                                        
       
  
                                       
                                        
                                        
                                        
                                        
                    
  
 All Borrower’s representations and warranties in the Amended and Restated Loan and Security Agreement (the “Agreement”) are true, correct and complete in
all material respects on the date of the telephone request for an Advance, Equipment Facility 2 Advance, or Equipment Facility 3 Advance confirmed by this Payment/Advance Form; but those representations and warranties expressly referring to another
date shall be true, correct and complete in all material respects as of that date. In addition, Borrower hereby represents that it is in compliance with Section 6.8 of the Agreement. 
  
 BANK USE ONLY 
  
 TELEPHONE REQUEST: 
  
 The following person is authorized to request the loan payment transfer/loan advance on the advance designated account and is known to me. 
  

			
	  

	  	  

	Authorized Requester	  	Phone #
	  

	  	  

	Received By (Bank)	  	Phone #
	  

	Authorized Signature (Bank)

  

 1 

 Exhibit B 
  
 EXHIBIT D 
  
 COMPLIANCE CERTIFICATE 
  

			
	 TO:
	    	SILICON VALLEY BANK
	 	    	3003 Tasman Drive
	 	    	Santa Clara, CA 95054
		
	 FROM:
	    	SABA SOFTWARE, INC.
	 	    	2400 Bridge Parkway
	 	    	Redwood Shores, CA 94065

  
 The undersigned
authorized officer of SABA SOFTWARE, INC. (“Borrower”) certifies that under the terms and conditions of the Amended and Restated Loan and Security Agreement between Borrower and Bank (as further amended, restated, or otherwise modified
from time to time, the “Agreement”), (i) Borrower is in complete compliance for the period ending                      with all
required covenants except as noted below and (ii) all representations and warranties in the Agreement are true and correct in all material respects on this date. Attached are the required documents supporting the certification. In addition, the
undersigned authorized officer of Borrower certifies that Borrower and each of its Subsidiaries (x) has timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith
with adequate reserves under Generally Accepted Accounting Principles (“GAAP”) and (y) does not have any legal actions pending or threatened against Borrower or any Subsidiary which Borrower has not previously notified in writing to Bank.
The Officer certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The Officer acknowledges that no borrowings may be requested at any
time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. 
  
 Please indicate compliance status by circling Yes/No under
“Complies” column. 
  

							
	 Reporting Covenant

	  	 Required

	  	 Complies

	 Monthly financial statements + CC
	  	Monthly within 45 days	  	Yes	  	No
	 Annual (Audited)
	  	FYE within 120 days	  	Yes	  	No
	 SEC Filings not available on EDGAR
	  	Within 5 days after filing with SEC	  	Yes	  	No
	 Annual Financial Projections
	  	FYE within 45 days	  	Yes	  	No

  

														
	 Financial Covenant

	  	Required

	  	Actual

	  	Complies

	 Cash and cash equivalents (net of Credit Extensions) on deposit at Bank and/or Bank’s affiliates (to be maintained at all
times)
	  	$	7,500,000	  	 	 	  	$	                	  	Yes	  	No
	 	  	 	 	  	 	 	  	$	                	  	Yes	  	No
	 Minimum Total Revenue*
	  	 	 	  	 	 	  	 	 	  	 	  	 
	 	  	Quarter
ending

	  	 Minimum
Total
 Revenue

	  	 	  	 	  	 
	 * - No longer applicable if Borrower meets or exceeds covenant for any three consecutive quarters
	  	 	8/31/04	  	$	8,800,000	  	 	 	  	 	  	 
	  	 	11/30/04	  	$	9,500,000	  	 	 	  	 	  	 
	  	 	2/28/05	  	$	10,500,000	  	 	 	  	 	  	 
	  	 	5/31/05	  	$	12,000,000	  	 	 	  	 	  	 
	  	 
 	8/31/05 and
thereafter	  	$	11,000,000	  	 	 	  	 	  	 

  
 [continued on following
page] 
  

 1 

					
	 Comments Regarding Exceptions: See Attached.
	 	 	 	 BANK USE ONLY

			
	 Sincerely,
	 	 	 	 Received by:
                                        
                                     

	 	 	 	 	AUTHORIZED SIGNER
			
	 SABA SOFTWARE, INC.
	 	 	 	 
			
	                                       
                                        
                         
	 	 	 	 
	 SIGNATURE
	 	 	 	 Date:
                                        
                                        
           

			
	                                       
                                        
                         
	 	 	 	 Verified:
                                        
                                        
    

	 TITLE
	 	 	 	AUTHORIZED SIGNER
			
	                                       
                                        
                         
	 	 	 	 Date:
                                        
                                        
           

			
	 DATE
	 	 	 	 Compliance
Status:                                       
             Yes    No

  

 2 

 Exhibit C 
  
 EXHIBIT F 
  
 FORM OF 
 LOAN AGREEMENT SUPPLEMENT - EQUIPMENT FACILITY 3 ADVANCES

  
 LOAN AGREEMENT SUPPLEMENT No. [    ]

  
 LOAN AGREEMENT SUPPLEMENT No. [    ],
dated                     , 200     (“Supplement”), to the Amended and Restated Loan and Security
Agreement dated October 31, 2003 (as amended, restated, or otherwise modified from time to time, the “Loan Agreement”), by and between the undersigned (“Borrower”) and Silicon Valley Bank (“Bank”). 
  
 Capitalized terms used herein but not otherwise defined herein are used with
the respective meanings given to such terms in the Loan Agreement. 
  
 To secure the prompt payment by Borrower of all amounts from time to time outstanding under the Loan Agreement, and the performance by Borrower of all the terms contained in the Loan Agreement, Borrower grants Bank, a first priority
security interest in each item of equipment and other property described in Annex A hereto, which equipment and other property shall be deemed to be additional Financed Equipment and Collateral. The Loan Agreement is hereby incorporated by reference
herein and is hereby ratified, approved and confirmed. 
  
 Annex A
(Equipment Schedule) and Annex B (Loan Terms Schedule) are attached hereto. 
  
 The proceeds of the Loan should be transferred to Borrower’s account with Bank set forth below: 
  

			
	 Bank Name:
	  	Silicon Valley Bank
	 Account No.:
	  	 

  
 Borrower hereby certifies that (a) the
foregoing information is true and correct and authorizes Bank to endorse in its respective books and records, the Option 5 Basic Rate or Option 6 Basic Rate applicable to the Funding Date of the Option 5 Loan or Option 6 Loan contemplated in this
Loan Agreement Supplement and the principal amount set forth in the Loan Terms Schedule; (b) the representations and warranties made by Borrower in the Loan Agreement are true and correct in all material respects on the date hereof and will be true
and correct in all material respects on such Funding Date; and (c) it is in compliance with Section 6.8 of the Loan Agreement. No Event of Default has occurred and is continuing under the Loan Agreement. This Supplement may be executed by Borrower
and Bank in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 
  
 [Signature page follows.] 
  

 3 

 This Supplement is delivered as of this day and year first above written. 
  

			
	SILICON VALLEY BANK	  	SABA SOFTWARE, INC.
		
	By:                                     
                                        
                        	  	By:                                     
                                        
             
	Name:                                     
                                        
                  	  	Name:                                     
                                        
      
	Title:                                     
                                        
                    	  	Title:                                     
                                        
         

  
 Annex A - Description of Financed
Equipment 
 Annex B - Loan Terms Schedule 
  

 4 

 Annex A to Exhibit F 
  
 The Financed Equipment being financed with the Equipment Facility 3 Advance with respect to which this Loan Agreement
Supplement is being executed is listed below. Upon the funding of such Equipment Facility 3 Advance, this schedule automatically shall be deemed to be a part of the Collateral. 
  

									
	 Description of Equipment

	  	Make

	  	Model

	  	Serial #

	  	Invoice #

	 	  	 	  	 	  	 	  	 

  

 1 

 Annex B to Exhibit F 
  
 LOAN TERMS SCHEDULE #             
  
 Loan Funding Date:
                    , 200     
 Original Loan Amount: $                     
 Option 5 Basic Rate:             % 
 Option 6 Basic Rate:
            % 
  
 Scheduled Payment Dates and Amounts*: 
  
 One (1) payment
of $                         due
                         
  
              payment of
$                     due monthly in advance from
                     through
                    . 
  
 One (1) payment of $                     due
                                    . 
  
 Maturity Date:
                                        
         
  

			
	 Payment No.

	  	 Payment Date

	 1
	  	 
	 2
	  	 
	 3
	  	 
	 4
	  	 
	 ...
	  	 
	 35
	  	 
	 [36]
	  	 
	 ...
	  	 

	*/	 	The amount of each Scheduled Payment may change as the Loan Amount changes. 

  

 1Exhibit 10.16

 Exhibit 10.16 
  
 AGREEMENT FOR THE SALE OF COMMERCIAL REAL ESTATE 
  
 This form recommended and approved for, but not restricted to use by, the members of the Pennsylvania Association of
REALTORS® (PAR). 
  

					
	PA LICENSED BROKER	 	 	 	PA LICENSED BROKER
	LISTING BROKER
(Company)                                      
  	 	 	 	SELLING BROKER
(Company)                                      
 
	                                      
                                        
                            	 	 	 	      JOHN HILL REAL ESTATE
	ADDRESS                                    
                                        
        	 	 	 	ADDRESS 231, Market Street
	                                      
                                       
                             	 	 	 	                    Johnstown, Pennsylvania, 15901
	PH                                     
        FAX                              
              	 	 	 	PH (814) 536-8746 FAX (814) 535-2758
	 DESIGNATED AGENT FOR SELLER (if applicable)
                                       
                                        
                            
	 	 	 	 DESIGNATED AGENT FOR BUYER (if applicable)
                                       
                                        
                            

  
 This Agreement, dated April 7,
2004, is between 
  

	1.	PRINCIPALS: GENERAL KENETICS, INCORPORATED 

 10688
– D, Crestwood Drive, Manassas, Virginia, 20109, called “Seller,” and 
 PAUL J. PETROVICH TRUST, c/o John Hill
Real Estate 
 231 Market Street, Johnstown, Pennsylvania, 15901, called “Buyer.” 
  

	2.	PROPERTY. Seller hereby agrees to sell and convey to Buyer, who hereby agrees to purchase: 

	 	ALL THAT CERTAIN lot or piece of ground with buildings and improvements thereon erected, if any, known as:  

  

	 	G.K.T. Building, 110 Sunray Drive, Johnstown, Pennsylvania, 15905  

 in the Township of Upper Yoder County of Cambria State of Pennsylvania Zip Code 15905  
 Zoning Classification: 0–3 

	 	Failure of this agreement to contain the zoning classification (except in cases where the property {and each parcel thereof, if subdividable} is zoned solely or primarily to permit
single-family dwellings) will render this agreement voidable at the option of the Buyer, and, if voided, any deposits tendered by the Buyer will be returned to the Buyer without any requirement for court action. 

 Tax Parcel No.  62 – 6 – 106    Deed Book  1180    Page
No.  157 
  

	3.	TERMS (1-00) 

  

	 	(A)	Purchase Price ONE MILLION ($1,000,000.00) U.S. Dollars to be paid to the Seller by the Buyer as follows: 

  

			
	1.  Cash or check at signing this agreement:
                                        
                                        
     	 	$                     
	2.  Cash or check within              days of the execution of this Agreement :
                                    	 	$                     
	3.                                      
                                        
                                        
                                    	 	$                     
	4.                                      
                                        
                                        
                                    	 	$                     
	5.  Cash, cashier’s or certified check at time of settlement:
                                        
                      	 	$1,000,000.00
	 TOTAL PRICE
	 	$1,000,000.00

  

	 	(B)	Deposits paid on account of purchase price to be held by Listing Broker, unless otherwise stated here:
                             

	 	 	                                      
                                        
                                        
                                        
                                        

  

	 	(C)	Seller’s written approval to be on or before: April 14, 2004 

  

	 	(D)	Settlement to be made on or before: May 15, 2004 

  

	 	(E)	Conveyance from Seller will be by fee simple deed of special warranty unless otherwise stated here: General Warranty 

  

	 	(F)	Payment of transfer taxes will be divided equally between Buyer and Seller unless otherwise stated here:
                             

	 	 	                                      
                                        
                                        
                                        
                                        

  

	 	(G)	At time of settlement, the following will be adjusted pro-rata on a daily basis between Buyer and Seller, reimbursing where applicable: taxes; rents; interest on mortgage
assumptions; condominium fees, if any; water and/or sewer fees, if any, together with any other lienable municipal service. The charges are to be pro-rated for the period(s) covered: Seller will pay up to and including the date of settlement; Buyer
will pay for all days following settlement, unless otherwise stated here:
                                        
                                        
                                        

	 	 	                                      
                                        
                                        
                                        
                                        

  

	4.	POSSESSION (1-98) 

  

	 	(A)	Possession is to be delivered by deed, keys and: 

  

	 	1.	Physical possession to a vacant building (if any) broom-clean, free of debris at day and time of settlement, AND/OR 

  

	 	2.	Assignment of existing lease(s), together with any security deposits and interest, at time of settlement, if Property is tenant-occupied at the execution of this Agreement or unless
otherwise specified herein.
                                        
                                        
         

	 	 	                                      
                                        
                                        
                                        
                                

 Buyer will acknowledge existing lease(s) by initialing said lease(s) at time of signing this Agreement, if Property is tenant-occupied. 
  

	 	(B)	Seller will not enter into any new leases, written extension of existing leases, if any, or additional leases for the Property without expressed written consent of Buyer.

  

	 	(C)	Buyer reserves the right to make a pre-settlement inspection of the subject property. 

  

	5.	FIXTURES & PERSONAL PROPERTY (1-00) 

  

	 	(A)	INCLUDED in this sale and purchase price are all existing items permanently installed in the Property, free of liens, including plumbing; heating; lighting fixtures; water treatment
systems; any remaining heating fuels stored on the Property at the time of settlement; and built-in air conditioners, unless otherwise stated. Also included:
                                        
                                     

  

	 	(B)	LEASED items (items not owned by Seller):
                                        
                                        
                             

	 	 	                                      
                                        
                                        
                                        
                                        

  

	 	(C)	EXCLUDED fixtures and items:
                                        
                                        
                                        

	 	 	                                      
                                        
                                        
                                        
                                        

  

	6.	SPECIAL CLAUSES (1-00) 

  

	 	(A)  x	Buyer and Seller have received the Consumer Notice as adopted by the State Real Estate Commission at 49 Pa. Code §35,366. 

  

	 	(B)	It is understood and agreed that this agreement is contingent upon G.K.I. entering into a Lease as outlined in the option agreement dated May 20, 2003. 

  

	 	(C)	The within offer is also contingent upon the buyer obtaining financing. 

  

					
	 Buyer Initials :  /s/ JFH
	 	 Seller Initials: /s/ SS

	 

	 	 	 	 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 1989

  

 Page 1 of 4 

 Seller represents that the property is served by: 
  

	 	x	Public Water 

  

	 	 ̈	On-site Water 

  

	 	 ̈	Community Water 

  

	 	 ̈	None 

  

	 	 ̈	                                      
                                        
                                        
                                        
                                        

  
 Seller further warrants that this system(s) is
fully paid for as of the date of this Agreement. 
  

	8.	STATUS OF SEWER (1-00) 

  
 Seller represents that the property is served by: 
  

	 	x	Public Sewer 

  

	 	 ̈	Community Sewage Disposal System 

  

	 	 ̈	Off-Property Sewage Disposal System 

  

	 	 ̈	Individual On-Lot Sewage Disposal System (See Sewage Notice 1) 

  

	 	 ̈	Individual On-Lot Sewage Disposal System in Proximity to Well (See Sewage Notice 1; see Sewage Notice 4, if applicable) 

  

	 	 ̈	Ten-acre Permit Exemption (See Sewage Notice 2) 

  

	 	 ̈	Holding Tank (See Sewage Notice 3) 

  

	 	 ̈	None (See Sewage Notice 1) 

  

	 	 ̈	None Available (See Sewage Notice 5 or Sewage Notice 6, as applicable) 

  

	 	 ̈	                                      
                                        
                                        
                                        
                                        

  
 Seller further warrants that this system(s) is
fully paid for as of the date of this Agreement. 
  

	9.	PROPERTY DEFECTS DISCLOSURE 

  

	 	(A)	Owner represents and warrants that Owner has no knowledge except as noted in this Agreement: 

  

	 	1.	That the premises have been contaminated by any substance in any manner which requires remediation; 

  

	 	2.	That the property contains wetlands, flood plains, or any other environmentally sensitive areas, development of which is limited or precluded by law; 

  

	 	3.	That the property contains asbestos, polychlorinated biphenyls, lead-based paint or any other substance, the removal or disposal of which is subject to any law or regulation except
for items discovered during the due diligence and environmental study conducted by the buyer. 

  

	 	4.	That any law has been violated in the handling or disposing of any material or waste or the discharge of any material into the soil, air, surface water, or ground water.

  

	 	(B)	Seller and Buyer acknowledge that Broker: 

  

	 	1.	Is a licensed real estate broker; 

  

	 	2.	Is not an expert in construction, engineering, or environmental matters; and 

  

	 	3.	Has not made and will not make any representations or warranties nor conduct investigations of the environmental condition or suitability of the property or any adjacent property,
including whether: 

  

	 	a.	The premises have been contaminated by any substance in any manner that requires remediation; 

  

	 	b.	The property contains wetlands, flood plains, or any other environmentally sensitive areas, the development of which is limited or precluded by law; 

  

	 	c.	The property contains asbestos, polychlorinated biphenyls, lead-based paint or any other substance, the removal or disposal of which is subject to any law or regulation; and

  

	 	d.	Any law has been violated in the handling or disposing of any material or waste or the discharge of any material into the soil, air, surface water, or ground water, except as noted
in this Agreement. 

  

	 	(C)	Seller agrees to indemnify and to hold Brokers harmless from and against all claims, demands, or liabilities, including attorneys’ fees and court costs, which arise from or are
related to the environmental condition or suitability of the property prior to, during, or after Seller’s occupation of the property including without limitation any: 

  

	 	1.	Contamination of the property as defined in paragraph 9(A)(1); 

  

	 	2.	Presence of any environmentally sensitive areas on the property as defined in paragraph 9(A)(2); 

  

	 	3.	Presence on the property of any substances which are the subject of paragraph 9(A)(3); or 

  

	 	4.	Violation of the law as described in paragraph 9(A)(4). 

  

	 	(D)	The provisions of this Section will survive the performance of this Agreement. 

  

	10.	NOTICES & ASSESSMENTS 

  

	 	(A)	Seller represents, as of the acceptance date of this Agreement, that no public improvement assessments have been made against the premises which remain unpaid and that no notice by
any government or public authority has been served upon the Seller or anyone on the Seller’s behalf, including notices relating to violations of zoning, building, safety, or fire ordinances which remain uncorrected unless otherwise specified
herein. 

  

	 	(B)	Any notice of improvements or assessments received on or before the date of Seller’s acceptance of this Agreement, unless improvements consist of sewer or water lines not in
use, will be the responsibility of the Seller; any notices received thereafter will be the responsibility of the Buyer. 

  

	 	(C)	If required by law, Seller will deliver to Buyer, on or before settlement, a certification from the appropriate municipal department or departments disclosing notice of any
uncorrected violation of zoning, building, safety, or fire ordinances. 

  

	 	(D)	Buyer is advised that access to a public road may require issuance of a highway occupancy permit from the Department of Transportation. 

  

	11.	TITLE, SURVEYS & COSTS (1-00) 

  

	 	(A)	The Property is to be conveyed free and clear of all liens, encumbrances, and easements, EXCEPTING HOWEVER the following: existing deed restrictions, historic preservation
restrictions or ordinances, building restrictions, ordinances, easements of roads, easements visible upon the ground, easements or record, privileges or rights of public service companies, if any; otherwise the title to the above described real
estate will be good and marketable and such as will be insured by a reputable Title Insurance Company at the regular rates. 

  

	 	(B)	In the event Seller is unable to give a good and marketable title and such as will be insured by a reputable Title Company at the regular rates, as specified in paragraph 11(A),
Buyer will have the option of taking such title as Seller can give without changing the price or of being repaid all monies paid by Buyer to Seller on account of purchase price and Seller will reimburse Buyer for any costs incurred by Buyer for
those items specified in paragraph 11(C) and in paragraph 11(D) items (1), (2), (3); and in the latter event there will be no further liability or obligation on either of the parties hereto and this Agreement will become VOID.

  

	 	(C)	Any survey or surveys which may be required by the Title Insurance Company or the abstracting attorney, for the preparation of an adequate legal description of the Property (or the
correction thereof), will be secured and paid for by Seller. However, any survey or surveys desired by Buyer or required by the mortgage lender will be secured and paid for by Buyer. 

  

			
	Buyer Initials: /s/ JFH	 	Seller Initials : /s/ SS

  

 Page 2 of 4 

	 	(D)	Buyer will pay for the following: (1) the premium for mechanics lien insurance and/or title search, or fee for cancellation of same, if any; (2) The premiums for flood insurance
and/or fire insurance with extended coverage, insurance binder charges or cancellation fee, if any; (3) Appraisal fees and charges paid in advance to mortgage lender, if any; (4) Buyer’s customary settlements costs and accruals.

  

	12.	RECORDING This Agreement will not be recorded in the Office of the Recorder of Deeds or in any other office or place of public record. If Buyer causes or permits this
Agreement to be recorded, Seller may elect to treat such act as a breach of this Agreement. 

  

	13.	ASSIGNMENT This Agreement will be binding upon the parties, their respective heirs, personal representatives, guardians and successors, and, to the extent assignable, on the
assigns of the parties hereto. It is expressly understood, however, that the Buyer will not transfer or assign this Agreement without the written consent of the Seller. 

  

	14.	DEPOSIT & RECOVERY FUND (1-00) 

  

	 	(A)	Deposits paid by Buyer within 30 days of settlement will be by cash, cashier’s or certified check. Deposits, regardless of the form of payment and the person designated as
payee, will be paid to Broker or party identified in paragraph 3(B), who will retain them in an escrow account until consummation or termination of this Agreement in conformity with all applicable laws and regulations. Any uncashed check tendered as
deposit may be held pending the acceptance of this offer. 

  

	 	(B)	In the event of a dispute over entitlement to deposit monies, a broker holding the deposit is required by the Rules and Regulations of the State Real Estate Commission (49 Pa. Code
§35.327) to retain the monies in escrow until the dispute is resolved. In the event of litigation for the return of deposit monies, a broker will distribute the monies as directed by a final order of court or the written agreement of the
parties. Buyer and Seller agree that, in the event any broker or affiliated licensee is joined in litigation for the return of deposit monies, the attorneys’ fees and costs of the broker(s) and licensee(s) will be paid by the party joining
them. 

  

	 	(C)	A Real Estate Recovery Fund exists to reimburse any persons who have obtained a final civil judgment against a Pennsylvania real estate licensee owing to fraud, misrepresentation,
or deceit in a real estate transaction and who have been unable to collect the judgment after exhausting all legal and equitable remedies. For complete details about the Fund, call (717) 783-3658, or (800) 822-2113 (within Pennsylvania) and (717)
783-4854 (outside Pennsylvania). 

  

	15.	MAINTENANCE & RISK OF LOSS 

  

	 	(A)	Seller will maintain the property, and any personal property specified herein, in its present condition, normal wear and tear excepted. 

  

	 	(B)	Seller will promptly notify the Buyer if, at any time prior to the time of settlement, all or any portion of the property is condemned, destroyed, or damaged as a result of any
cause whatsoever. 

  

	 	(C)	Seller will bear risk of loss from fire or other causes until time of settlement. In the event that damage to any property included in this sale is not repaired or replaced prior to
settlement, Buyer will have the option of rescinding this Agreement and receiving all monies paid on account or of accepting the property in its then condition together with the proceeds of any insurance recovery obtained by Seller. Buyer is hereby
notified that he/she may insure his/her equitable interest in this property as of the time this Agreement is accepted. 

  

	16.	REPRESENTATIONS (1-00) 

  

	 	(A)	Buyer understands that any representations, claims, advertising, promotional activities, brochures or plans of any kind made by Seller, Brokers, their licensees, employees,
officers, or partners are not a part of this Agreement unless expressly incorporated or stated in this Agreement. 

  

	 	(B)	It is understood that Buyer has inspected the property before signing this Agreement (including fixtures and any personal property specifically scheduled herein), or has waived
the right to do so, and has agreed to purchase it in its present condition unless otherwise stated in this Agreement. Buyer acknowledges that Brokers, their licensees, employees, officers or partners have not made an independent examination or
determination of the structural soundness of the Property, the age or condition of the components, environmental conditions, the permitted uses, or of conditions existing in the locale where the Property is situated; nor have they made a mechanical
inspection of any of the systems contained therein. 

  

	 	(C)	It is further understood that this Agreement contains the whole agreement between Seller and Buyer and there are no other terms, obligations, covenants, representations, statements
or conditions, oral or otherwise of any kind whatsoever concerning this sale. Furthermore, this Agreement will not be altered, amended, changed, or modified except in writing executed by the parties. 

  

	 	(D)	The headings, captions, and line numbers in this Agreement are meant only to make it easier to find the paragraphs. 

  

	17.	TIME OF THE ESSENCE-DEFAULT (1-00) 

  
 The said time for settlement and all other times referred to for the performance of any of the obligations of this Agreement are hereby agreed to be of
the essence of this Agreement. For the purposes of this Agreement, number of days will be counted from the date of execution, by excluding the day this Agreement was executed and including the last day of the time period. Should Buyer: 

 

	 	(A)	Fail to make any additional payments as specified in paragraph 3; OR 

  

	 	(B)	Furnish false or incomplete information to Seller, Listing Broker, Selling Broker, or the mortgage lender, if any, concerning Buyer’s legal or financial status, or fail to
cooperate in the processing of the mortgage loan application, which acts would result in the failure to obtain the approval of a mortgage loan commitment; OR 

  

	 	(C)	Violate or fail to fulfill and perform any other terms or conditions of this Agreement; then in such case, Seller has the option of retaining all sums paid by Buyer, including the
deposit monies. 1) on account of purchase price, or 2) as monies to be applied to Seller’s damages, or 3) as liquidated damages for such breach, as Seller may elect, unless otherwise checked below. 

  

	 	 ̈	Seller is limited to retaining sums paid by Buyer, including deposit monies, as liquidated damages. If seller elects to retain all sums paid by Buyer, including deposit monies, as
liquidated damages, Buyer and Seller will be released from further liability or obligation and this Agreement will be VOID. 

  

	18.	BROKERS (1-00) The Business Relationships between the Broker(s) and Seller and Buyer are as follows, UNLESS a different relationship is checked below.

  

	 	(A)	The Listing Broker is Agent for Seller. 

  

	 	(B)	The Selling Broker is Agent for Buyer. 

  

	 	(C)	When the Listing Broker and Selling Broker are the same, the Broker is a Dual Agent. Dual Agency applies to all licensees, UNLESS there is a Designated Agent for Seller and a
Designated Agent for Buyer. If the same Licensee is designated for Seller and Buyer, the Licensee is a Dual Agent. 

  

	 	A.	Business Relationship exists that is different from above, as follows: 

  

	 	 ̈	The Selling Broker is the Agent/Subagent for Seller. 

  

	 	 ̈	The Selling Broker is a Transaction Licensee. 

  

	 	 ̈	The Listing Broker is a Transaction Licensee. 

  

	 	(D)	Broker(s) may perform services to assist unrepresented parties in complying with the terms of this Agreement. 

  

			
	Buyer Initials: /s/ JFH	 	Seller Initials: /s/ SS

  

 Page 3 of 4 

 bly resolved. After written demand for arbitration by either Buyer or Seller, each party will select a
competent and disinterested arbitrator. The two so selected will select a third. If selection of the third arbitrator cannot be agreed upon within 30 days, either party may request that selection be made by a judge of a court of record in the county
in which arbitration is pending. Each party will pay its chosen arbitrator, and bear equally expenses for the third and all other expenses of arbitration. Arbitration will be conducted in accordance with the provisions of Pennsylvania Common Law
Arbitration 42 Pa. C.S.A. §7341 et. seq. This agreement to arbitrate disputes arising from this Agreement will survive settlement. 
  

	20.	NOTICE BEFORE SIGNING (1-00) 

  
 When signed by both parties, this is a legal contract. Buyer and Seller acknowledge that Brokers have advised them to consult and retain experts
concerning the legal and tax effects of this Agreement and the completion of the sale, as well as the condition and/or legality of the Property, including, but not limited to, the Property’s improvements, equipment, soil, tenancies, title and
environmental aspects. Return by facsimile transmission (FAX) of this Agreement, and all addenda, bearing the signatures of all parties, constitutes acceptance of this Agreement. 
  
 Buyer acknowledges receiving a copy of this Agreement at the time of signing. 
  
 WITNESS _________________________  BUYER /s/ James F. Hargreaves DATE
4/8/04 
 Buyer Name (print) PAUL J. PETROVICH ESTATE SS/TI # ______________ 
 Mailing Address c/o John Hill Real Estate, 231 Market Street, Johnstown, Pennsylvania, 15901 
 Phone #s _______________ FAX # _______________ E-Mail _______________ 
  
 WITNESS_________________________ BUYER ____________________DATE _____________________ 
 Buyer Name (print) ________________________________________SS/TI # ____________________ 
 Mailing Address____________________________________________________________________ 
 Phone #s _______________ FAX # _______________ E-Mail ________________________________ 
  
 WITNESS _________________________BUYER ____________________DATE _____________________

 Buyer Name (print) ________________________________________SS/TI # ____________________ 
 Mailing Address____________________________________________________________________ 
 Phone #s _______________ FAX # _______________ E-Mail ________________________________ 
  
 VOLUNTARY TRANSFER OF CORPORATE ASSETS: The undersigned acknowledges that he/she is
authorized by the Board of Directors to sign this Agreement on behalf of the Seller corporation and that this sale does not constitute a sale, lease, or exchange of all or substantially all the property and assets of the corporation, such as would
require the authorization or consent of the shareholders pursuant to 15 P.S. §1311. 
  
 SELLER’S ACCEPTANCE: Seller hereby accepts the above contract this (date) 4-13-04 
  
 WITNESS _________________________SELLER /s/ Sandy B. Sewitch CFO DATE 4-13-04 
 Seller Name (print) GENERAL, KENETICS INCORPORATED SS/TI # ____________________ 
 Mailing Address 10688-D
Crestwood DC, Manassas VA 20109 
 Phone #s _______________ FAX # _______________ E-Mail _______________ 
  
 WITNESS _________________________SELLER ____________________DATE _____________________

 Seller Name (print) ________________________________________SS/TI # ____________________ 
 Mailing Address____________________________________________________________________ 
 Phone #s _______________ FAX # _______________ E-Mail ________________________________ 
  
 WITNESS _________________________SELLER ____________________DATE _____________________

 Seller Name (print) ________________________________________SS/TI # ____________________ 
 Mailing Address____________________________________________________________________ 
 Phone #s _______________ FAX # _______________ E-Mail ________________________________ 
  
 The undersigned     ̈  Listing Broker     ̈   Selling
Broker agree to submit to arbitration in accordance with paragraph 19 of this Agreement. 
  
 LISTING BROKER (Company Name) __________________________________________________ 
 ACCEPTED BY
______________________________DATE__________ 
  
 SELLING BROKER (Company
Name) JOHN HILL REAL ESTATE 
 ACCEPTED BY /s/ Brian K. Chirillo DATE 4/8/04 
  

 Page 4 of 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]