Document:

Security Agreement

 EXHIBIT 10.2 
 SECURITY AGREEMENT 
 THIS SECURITY AGREEMENT is made and entered into by and between TENFOLD
CORPORATION, a Delaware corporation whose address is 698 West 10000 South, South Jordan, Utah 84095 (“Debtor”), and VERSATA ENTERPRISES, INC. with an address at 6011 West Courtyard Dr., Suite 300, Austin, Texas 78730 (“Secured
Party”). Capitalized terms used in this Agreement, unless otherwise defined herein, shall have the meanings set forth in that certain Agreement and Plan of Merger dated of even date herewith, by and among Debtor, Secured Party and TFTx
Acquisition, Inc. (the “Merger Agreement”). 
 For good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Debtor hereby grants to Secured Party a security interest in and to the Collateral, as herein defined, and in connection therewith the parties hereby agree as follows: 
 Collateral. To secure payment of the “Indebtedness”, as herein defined, Debtor hereby grants to Secured Party a security interest in and
to the following assets (“Collateral”): Any and all accounts receivable and equipment of Debtor now owned or hereinafter acquired, wherever located, other than leased equipment subject to capital lease obligations. 
 Indebtedness. The term “Indebtedness” as used herein, shall mean: (a) the unpaid principal sum, accrued and unpaid interest, and
other sums payable to Secured Party pursuant to that certain Promissory Note (the “Note”), dated as of the date hereof, executed by Debtor for the benefit of Secured Party; and (b) all rearrangements, increases, renewals and
extensions of such indebtedness. 
 Representations of Debtor. Debtor represents, warrants and agrees as follows: 
 (a) No financing statement or other instrument of hypothecation covering the Collateral or its proceeds is on file in any public office
except those in favor of Secured Party; except for the security interest granted by this Security Agreement, there is no lien, security interest or encumbrance in or on the Collateral other than (i) for taxes not yet due and payable and
(ii) liens permitted under the Merger Agreement or disclosed in the Company Disclosure Schedule; and Debtor is the true and lawful owner of the Collateral. 
 (b) Other than as permitted under the Merger Agreement, the Collateral will not be sold, transferred, pledged or made subject to a
security agreement without the prior written consent of Secured Party. 
 (c) Debtor will sign and execute alone or with
Secured Party any financing statement or other document or procure any document, in each case as Secured Party may reasonably request pursuant to clause (d) below, and pay all reasonable costs in connection therewith necessary to protect
the security interest under this Security Agreement against the rights or interests of third persons. 
 (d) Debtor will, at
Debtor’s own expense, do, make, procure, execute and deliver all acts, things, writings and assurances as Secured Party may at any time reasonably request to protect, assure or enforce the interests, rights and remedies of Secured Party created
by, provided in or emanating from this Security Agreement. 

 (e) Debtor will pay to Secured Party all reasonable expenses (including reasonable
expenses for legal services of every kind) of, or incidental to, the enforcement of any of the provisions of this Security Agreement, or incidental to the enforcement, repayment or collection of any of the Indebtedness, or any actual or attempted
sale, or any exchange, enforcement, collection, compromise or settlement of any of the Collateral or receipt of the proceeds thereof, and for the care of the Collateral and defending or asserting the rights and claims of Secured Party in respect
thereof, by litigation or otherwise; and all such expenses shall be deemed Indebtedness within the terms of this Security Agreement. 
 Uniform Commercial Code. This Security Agreement shall constitute a valid and binding security agreement under the Uniform Commercial Code — Secured Transactions (herein called the “Code”) creating in favor of Secured
Party, until the Indebtedness is fully paid, a first priority security interest in and to the Collateral. Accordingly, Debtor hereby acknowledges unto Secured Party that Secured Party shall have, in addition to any and all other rights, remedies and
recourses afforded to Secured Party under this Security Agreement, all rights, remedies and recourses afforded to secured parties by the Code. 
 Default by Debtor. There will be a default under this Security Agreement upon the occurrence of any of the following events or conditions (herein called an “Event of Default”): 
 (a) If any Indebtedness secured by this Security Agreement, either principal or interest, is not paid when due, and such failure is not
cured by the payment in full within three (3) Business Days from the due date thereof. 
 (c) If Debtor shall fail to
comply with any of Debtor’s covenants or agreements herein or in the Note and such failure remains uncured for thirty (30) days after receipt of written notice from Secured Party. 
 (d) If Debtor (i) applies for or consents to the appointment of a receiver, trustee, custodian or liquidator of all or a substantial
part of Debtor’s assets, or (ii) files a voluntary petition in bankruptcy or fails generally to pay Debtor’s debts as such debts become due, or (iii) makes a general assignment for the benefit of creditors, or (iv) files a
petition or answers same wherein Debtor seeks reorganization or rearrangement with creditors or to take advantage of any insolvency law, or (v) files an answer admitting the material allegations of a petition filed against Debtor in any
bankruptcy, reorganization, insolvency or similar proceeding. 
 (e) If an order, non-appealable judgment or decree is entered
by any court of competent jurisdiction, upon the application of a creditor or otherwise, adjudicating Debtor as bankrupt or insolvent or approving a petition seeking reorganization or appointing a receiver, trustee or liquidator of all or any
substantial part of Debtor’s assets and same remains in effect for more than sixty (60) days. 
 (f) If any
warranty, representation or statement contained in this Security Agreement or the Note proves to have been false in any material respect when made or furnished. 
 Remedies. 
 (a) Upon the occurrence of an Event of Default (but subject to any
applicable cure period) and at any time thereafter, Secured Party may proceed to enforce and to exercise any and all of the rights and remedies provided under the Note and by the Code, as well as all other rights and remedies possessed by Secured
Party under this Security Agreement or otherwise at law or 

  

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in equity. Secured Party may require Debtor to assemble the Collateral and make it available to Secured Party at Debtor’s location. For purposes of the
notice requirements of the Code, Secured Party and Debtor agree that notice given at least five (5) days prior to the related action hereunder is reasonable. Upon the occurrence of an Event of Default (but subject to any applicable cure period)
and at any time thereafter, Secured Party shall be entitled to immediate possession of the Collateral and all books and records evidencing same and shall have authority to enter upon any premises, upon which said items may be situated, and remove
same therefrom. Expenses of retaking, holding, preparing for sale, selling, or the like (collectively, “Collection Costs”) shall include, without limitation, Secured Party’s reasonable attorneys’ fees, and all such expenses shall
be recovered by Secured Party before applying the proceeds from the disposition of the Collateral toward the Indebtedness. To the extent allowed by the Code, Secured Party may use Secured Party’s discretion in applying the proceeds of any
disposition of the Collateral to the Collection Costs or to the Indebtedness, and Debtor will remain liable for any deficiency remaining after such disposition. All rights and remedies of Secured Party hereunder are cumulative and may be exercised
singly or concurrently. The exercise of any right or remedy will not be deemed a waiver of any other. 
 (b) Secured Party, in
addition to the rights and remedies provided for in the preceding subparagraph, shall have all the rights and remedies of a secured party under the Uniform Commercial Code as adopted by the state where the Collateral is located at the date of any
such Event of Default or expiration of any applicable cure period, whichever is later, and Secured Party shall be entitled to all such other rights and remedies as may now or hereafter exist at law or in equity for the collection of the Indebtedness
and the enforcement of the covenants herein and the foreclosure of the security interest created hereby and to resort to any remedy provided hereunder or provided by the Uniform Commercial Code as adopted in the state where the Collateral is located
at such date, or by any other law of such state, shall not prevent the concurrent or subsequent employment of any other appropriate remedy or remedies. 
 (c) Secured Party may remedy or waive any default without waiving any prior or subsequent default. 
 Secured Party’s Rights. 
 (d) This Security Agreement, Secured Party’s rights hereunder or said
Indebtedness hereby secured, may be assigned from time to time, and in any such case the assignee will be entitled to all of the rights, privileges and remedies granted in this Security Agreement to Secured Party. 
 (e) Upon the occurrence of an Event of Default and the expiration of any applicable cure periods, Secured Party may execute, sign,
endorse, transfer or deliver, in the name of Debtor, notes, checks, drafts or other instrument for the payment of money and receipts or any other documents, in each case as necessary to evidence, perfect or realize upon the security interest and
obligations created by this Security Agreement. 
 (f) At Secured Party’s option, Secured Party may, after notice to
Debtor and Debtor’s failure to do so within thirty (30) days after receipt of said notice, discharge taxes, liens or security interests or other encumbrances at any time levied or placed on the Collateral, and perform or cause to be
performed Debtor’s obligations under the Collateral to maintain the same in full force and effect. Debtor agrees to reimburse Secured Party on demand for any payment made, or reasonable expense incurred, by Secured Party pursuant to the
foregoing authorization, plus interest thereon at the rate of interest provided for in the Note. 
  

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 (g) No remedy herein conferred upon or reserved to Secured Party is intended to be or
shall be exclusive of any other remedy, but every remedy herein provided is cumulative and is in addition to every other remedy given hereunder or in any instrument executed in connection herewith, or now or hereafter existing at law or in equity,
or by statute; and every such right and remedy may be exercised from time to time and as often as may be deemed expedient. No delay or omission by Secured Party to exercise any right or remedy arising from any default will impair any such right or
remedy or will be construed to be a waiver thereof or of any such default or an acquiescence therein. 
 Release of Security Interest.
Upon full and complete payment of all sums owing and to be owing by Debtor to Secured Party hereunder and under the Note, at the request and expense of Debtor, Secured Party will make, execute and deliver a reassignment of the properties assigned
hereby and of the monies, revenues, proceeds, benefits and payments, if any, that may be owing upon the aforesaid Collateral to Debtor but without covenant or warranty, however, of any kind or character, express or implied, and with the provisions
that Secured Party will not be required or called upon to refund or account for any payments properly made to Secured Party which have been or may be properly applied to any Indebtedness secured or to be secured hereby. 
 Validity of Security Interest. No security taken hereafter as security for payment of any part or all of the Indebtedness shall impair in any
manner or effect this Security Agreement; all such present and future additional security to be considered as cumulative security. Any of the Collateral may be released from this Security Agreement without altering, varying or diminishing in any way
the force, effect, lien, security interest or charge of this Security Agreement as to the Collateral not expressly released, and this Agreement shall continue as a first lien, security interest and charge on all of the Collateral not expressly
released until all sums and indebtedness secured hereby have been paid in full. 
 Notices. Any notice, request or other document
shall be in writing and sent by registered or certified mail, return receipt requested, postage prepaid and addressed to the party to be notified at the following addresses, or such other address as such party may hereafter designate by written
notice to all parties, which notice shall be effective as of the date of posting: 
 If to Secured Party: 
 Versata Enterprises, Inc. 
 6011 West Courtyard Dr. 
 Suite 300 
 Austin, Texas 78730 
 Attn: Lance A. Jones 
 Telecopy: (512) 874-3502 
 If to Borrower: 
 TenFold
Corporation 
 698 West 10000 South 
 South Jordan, Utah 84095 
 Attn: Robert P. Hughes 
 Telecopy: (801) 816-0340 
 Texas Law. This Security Agreement and the obligations of the parties hereunder are to be interpreted, construed and enforced in accordance with
the laws of the State of Texas. 
 Severability. If any provision of this Security Agreement or the application thereof to any person
or circumstance is held to be invalid or unenforceable to any extent, the remainder of this Security Agreement and the application of such provisions to other persons or circumstances is not to be affected thereby and is to be enforced to the full
extent permitted by law. 
  

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 Successors and Assigns. This Security Agreement inures to the benefit of, and is binding upon,
Debtor and Secured Party and their respective heirs, legal representatives, successors and assigns. 
 Gender. The use of any gender
herein shall include the other genders. 
 Scope. Nothing herein contained will in any way limit or be construed as limiting the right
of Secured Party to collect any note, item, sum or amount secured or to be secured hereby only out of the properties assigned hereby or out of the revenues, monies, proceeds, benefits and payments accruing and to accrue unto Debtor, under and by
virtue of said Collateral, but it is expressly understood and provided that all such Indebtedness and amounts secured and to be secured hereby are, and shall constitute, absolute and unconditional obligations of Debtor to pay to Secured Party the
amount provided for in the Note or herein at the time and in the manner therein or herein specified or provided. Debtor agrees that Debtor will, from time to time, and upon the reasonable request of Secured Party, furnish satisfactory proof that the
properties assigned hereby and the revenues, monies, proceeds, benefits and payments accruing and to accrue under said Collateral are free and clear of all lawful demands, claims and liens other than those permitted hereunder. 
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 IN WITNESS WHEREOF, this Security Agreement is dated the
             day of March, 2008. 
  

			
	 SECURED PARTY:
  
 VERSATA ENTERPRISES, INC.

		
	By:	 	 
	 Name:
 Title:
	 	 Sean P. Fallon
 Vice President – Finance and
Chief Financial Officer

	
	 BORROWER:
  
 TENFOLD CORPORATION

		
	By:	 	 
	 Name:
 Title:
	 	 Robert Felton
 President and CEO

 Signature Page to Security AgreementPromissory Note

 EXHIBIT 10.3 
 PROMISSORY NOTE 
  

					
	$300,000.00	  	South Jordan, Utah	  	March 21, 2008

 FOR VALUE RECEIVED, the undersigned, TENFOLD CORPORATION, a Delaware corporation
(“Maker”), whose address is 698 West 10000 South, South Jordan, Utah 84095, promises to pay to the order of Versata Enterprises, Inc. (“Payee”) at 6011 West Courtyard Dr., Suite 300, Austin, Texas 78730, or such other location as
Payee may direct, in lawful money of the United States of America, the principal sum of THREE HUNDRED THOUSAND DOLLARS ($300,000.00) with interest on the outstanding principal balance at the rate of ten percent (10%) per annum until paid.
Capitalized terms used in this Note, unless otherwise defined herein, shall have the meanings set forth in that certain Agreement and Plan of Merger dated of even date herewith, by and among Maker, Payee and TFTx Acquisition, Inc. (the
“Agreement”). 
 All sums, principal and interest shall be due and payable on the earlier of (i) the Outside Date, or
(ii) the date the Agreement is terminated in accordance with its terms (such earlier date, the “Maturity Date”). Amounts payable hereunder shall be paid by cashier’s check or other immediately available funds at the above address
or, at Payee’s option, by wire transfer to an account designated by Payee or such other method of payment as Payee shall direct. This Note may be prepaid at any time, in full or in part, without premium or penalty. 
 Maker waives presentment for payment, notice of nonpayment, protest, demand, notice of protest, notice of intention to accelerate, notice of acceleration
and dishonor, diligence in enforcement and indulgences of every kind, and hereby agrees that this Note and the liens securing its payment may be extended and re-extended and the time for payment extended and re-extended from time to time without
notice, and Maker agrees that its liability on or with respect to this Note shall not be affected by any release or change in any security at any time existing or by any failure to perfect or maintain perfection of any security interest in such
security. 
 It is agreed that time is of the essence, and if the Note is not paid on the Maturity Date or if a default occurs hereunder or
under the Security Agreement dated as of the date hereof by and between Maker and Payee (the “Security Agreement”) (including any amendment hereof or thereof) , thereupon, after the passage of applicable notice and cure periods, at the
option of Payee, the entire unpaid principal balance due and owing on this Note shall become and be due and payable forthwith without demand, notice of default or intent to accelerate the maturity hereof, notice of nonpayment, presentment, protest
or notice of dishonor, all of which are hereby expressly waived by Maker to the extent permitted by applicable law. Failure to exercise this option upon any such default shall not constitute a waiver of the right to exercise such option in the event
of any subsequent default. 
 If the entire unpaid principal balance plus all accrued and unpaid interest due and owing on this Note is not
paid to Payee on or before the Maturity Date, whether by acceleration or otherwise, and is placed in the hands of an attorney for collection, or suit is filed hereon, or proceedings are had in probate, bankruptcy, receivership, reorganization,
arrangement or other legal proceedings for collection hereof, Maker agrees to pay Payee its reasonable collection costs, including a reasonable amount for attorneys’ fees, but in no event to exceed the maximum amount permitted by law (such
costs, “Collection Costs”). Maker is and shall be directly and primarily liable for the payment of all sums called for hereunder. Maker hereby expressly waives bringing of suit and diligence in taking any action to collect any sums owing
hereon and in the handling of any security hereunder, and Maker hereby consents to and 

 
agrees to remain liable hereon regardless of any renewals, extensions for any period or rearrangements hereof, or any release or substitution of security
herefor, in whole or in part, with or without notice, from time to time, before or after maturity, until the payment in full of all principal and interest outstanding and any Collection Costs owing hereunder, upon which payment Maker shall be
released of all liability hereunder. 
 It is the intent of Maker and Payee in executing this Note to strictly comply with applicable usury
law. In furtherance thereof, Maker and Payee stipulate and agree that none of the terms and provisions contained in this Note or the Security Agreement (including any amendment hereof or thereof) shall ever be construed to create a contract to pay
for the use, forbearance or detention of money, interest at a rate or in an amount in excess of the maximum rate or amount allowed by law (“Maximum Interest”). Maker shall never be obligated or required to pay interest on this Note at a
rate in excess of the Maximum Interest, and the provisions of this paragraph shall control over all other provisions of this Note (including any amendment hereof). Payee expressly disavows any intention to charge or collect excessive unearned
interest or finance charges in the event the maturity of this Note is accelerated. If the maturity of this Note shall be accelerated for any reason or if the principal of this Note is paid prior to the end of the term of this Note, and as a result
thereof the interest received for the actual period of existence of the loan evidenced by this Note exceeds the applicable maximum lawful rate, the holder of this Note shall credit the amount of such excess against the principal balance of this Note
then outstanding and thereby shall render inapplicable any and all penalties of any kind provided by applicable law as a result of such excess interest; provided, however, that if the principal hereof has been paid in full, such excess shall be
refunded to Maker. If the holder of this Note shall receive money (or anything else) which is determined to constitute interest and which would increase the effective interest rate on this Note or any other indebtedness which Maker or a guarantor is
obligated to pay to holder at a rate in excess of that permitted by applicable law, the amount determined to constitute interest in excess of the lawful rate shall be credited against the principal balance of this Note then outstanding or, if the
principal balance has been paid in full, refunded to Maker, in which event any and all penalties of any kind under applicable law as a result of such excess interest shall be inapplicable. If the holder of this Note shall not actually receive, but
shall contract for, request or demand, a payment of money (or anything else) which is determined to constitute interest and which would increase the effective interest rate contracted for or charged on this Note to a rate in excess of that permitted
by applicable law, the holder of this Note shall be entitled, following such determination, to waive or rescind the contractual claim, request or demand for the amount determined to constitute interest in excess of the lawful rate, in which event
any and all penalties of any kind under applicable law as a result of such excess interest shall be inapplicable. By execution of this Note Maker acknowledges that Maker believes the loan evidenced by this Note to be non-usurious and agrees that if,
at any time, Maker should have reason to believe that such loan is in fact usurious, Maker will give the holder of this Note notice of such condition and Maker agrees that the holder shall have sixty (60) days in which to make appropriate
refund or other adjustment in order to correct such condition if in fact such exists. 
 Additionally, if, from any circumstance whatsoever,
fulfillment of any provision hereof shall, at the time fulfillment of such provision be due, involve transcending the Maximum Interest, then, ipso facto, the obligation to be fulfilled shall be reduced to the Maximum Interest. The term
“applicable law” as used in this Note shall mean the laws of the State of Texas. 
 This Note is secured by a security agreement
covering all of Maker’s accounts receivable and equipment now owned or hereinafter acquired, executed by Maker in favor of Payee, or any other holder of this Note, executed simultaneously herewith. 
 Maker agrees to abide by its obligations under Section 5.1(g) of the Merger Agreement and that any breach thereof, unless and until cured,
constitutes a default hereunder. Maker agrees that its payment obligations under this note shall be senior to any those of any other note or borrowings that the Maker may undertake and that the Maker shall not undertake any such other payment
obligations without such lender agreeing to subordinate such payments obligations to the payments obligations made with respect hereto. 
  

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 This Note has been executed and delivered in and shall be construed in accordance with and governed by
the laws of the State of Texas. 
  

			
	MAKER:
	
	TENFOLD CORPORATION
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

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