Document:

March 27, 2002

Dale Royal

Dear Dale:

It  is  my  pleasure to extend you an offer to join Evolve Software, Inc. in the
position  of  Vice  President,  Sales  on  the  following  terms.

You  will  report  directly  to  the  Chief  Executive  Officer  ("CEO")  at our
Emeryville  office.  Your  duties  will  be consistent with the position of Vice
President,  Sales  and  may  include any other duties which may be assigned from
time  to  time  by  the  CEO. Your start date is set for no later than April 15,
2002.

Your  total  annual  target compensation consists of two components.  First, you
shall  receive a base salary of $200,000 per annum, less standard deductions and
withholdings,  paid  semi-monthly.  Second,  you are eligible to earn commission
compensation  up  to  an additional $200,000 per annum, less standard deductions
and  withholdings,  provided you achieve 100% of the goals set forth in the Vice
President,  Sales  Commission  Plan.  The Vice President, Sales Commission Plan,
and  your  stated  goals,  shall  be  determined  by  the  Company  in  its sole
discretion.  As  a  regular  full-time  employee  you  will  be eligible for the
Company's  standard  benefits,  which include: medical, dental, vision, life and
LTD  insurance  coverage  and participation in the Company 401(k) plan and ESPP.
Evolve  may  modify your compensation and benefits from time to time as it deems
appropriate.  A  member  of  the Human Resources team will meet with you on your
first  day  of  work  to  assist  in  completion  of  your  new  hire paperwork.

Subject  to  the  approval  of the Board of Directors, you will be granted stock
options  to  purchase  1,250,000  shares  of  Evolve's  common stock (the "Stock
Options")  in  two  separate  grants.  The  first  750,000 stock options will be
granted  at  the first board meeting after commencement of your employment.  The
remaining  500,000 stock options will be granted at the first board meeting that
occurs  after  July  1,  2002  and  shall be subject to any adjustment for stock
splits, reverse stock splits, or similar transactions that may occur between the
date  of  this  offer  letter and the date of grant of the options.  The vesting
schedule and all terms, conditions, and limitations of the Stock Options will be
set  forth  in  a  stock  option grant notice using the Company's standard stock
option  agreement  under  the 2000 Stock Plan.  The stock options will vest over
four  years from your start date, with 25 percent of these stock options vesting
one-year  from  your  start  date,  and vesting thereafter at a rate of 1/48 per
month.  The  option  price  of  each  set of shares will be the closing price of
Evolve's  stock  as  reported  on  NASDAQ  on  the  date  the  grant  is  made.

Notwithstanding  your  employment  as  an  at-will  employee,  upon a "Change of
Control"  as  defined  below and if within three months from the consummation of
such  a "Change of Control" the Company terminates your employment without Cause
(as  defined  below) or you resign for Good Reason (as defined below) and on the
conditions  that  you  first

<PAGE>
Dale Royal
March 27, 2002
Page 2 of 4

execute  and  deliver to the Company a general release in a form satisfactory to
the  Company and continue to abide by your obligations to the Company under your
Employment,  Confidential  Information  and  Invention Assignment Agreement, you
will  receive, as severance: (i) three months of your base salary, less standard
deductions  and  withholdings;  and  (ii) one-year of accelerated vesting of the
Stock  Options.  At  the  Company's  sole discretion, the severance payments set
forth  in  (i) above shall be paid in a lump sum payment or in periodic payments
in  the  Company's  regular  payroll  cycle.

For  the  purposes  of  this  offer,  "Cause"  shall  mean:  (i)  indictment  or
conviction  of  any  felony  or  of  any  crime  involving  dishonesty;  (ii)
participation  in  any  fraud  or  act  of dishonesty against the Company; (iii)
breach  of  your  duties  to  the  Company,  including  but  not  limited  to
unsatisfactory  performance of your job duties; (iv) violation of Company policy
which  causes a material detriment to the Company; (v) intentional damage to any
property  of  the  Company;  (vi)  conduct  by  you which, in the good faith and
reasonable  determination of the Company, demonstrates gross unfitness to serve;
or  (vii)  material  breach  of  this  offer  or  your  Employment, Confidential
Information  and  Invention  Assignment  Agreement.

For  the  purposes of this offer "Good Reason" shall mean:  (i) there has been a
Change  of  Control  (as  defined  below)  and  (ii)  there  has been a material
diminishment in your job responsibilities and (iii) you are no longer an officer
of  the  Company;  provided,  however, that upon the occurrence of the preceding
event,  you  shall be deemed to have waived any rights to resign from employment
for  Good  Reason and to any severance payment(s) if you do not notify the Chief
Executive  Officer, in writing, of your intention to resign within 45 days after
such  event.

For  purposes of this offer "Change in Control" shall mean:  the consummation of
any  one of the following events:  (i) a sale of all or substantially all of the
assets  of  the  Company; (ii) a merger or consolidation in which the Company is
not the surviving corporation (other than a transaction the principal purpose of
which is to change the state of incorporation of the Company or a transaction in
which  the  voting  securities  of  the  Company  are  exchanged  for beneficial
ownership  of  at  least  fifty  percent  (50%)  of the voting securities of the
controlling acquiring corporation); (iii) a merger or consolidation in which the
Company  is  the  surviving corporation and less than fifty percent (50%) of the
voting  securities  of  the  Company which are outstanding immediately after the
consummation of such transaction are beneficially owned, directly or indirectly,
by  the  persons  who  owned  such  voting  securities immediately prior to such
transaction;  or  (iv)  the  acquisition  by  any person, entity or group or any
comparable successor provisions (excluding any employee benefit plan, or related
trust,  sponsored  by the Company or any parent or subsidiary of the Company) of
the beneficial ownership of securities representing at least fifty percent (50%)
of  the  combined  voting  power  entitled to vote in the election of directors.
Notwithstanding  the  above  to  the  contrary, a Change of Control shall not be
deemed  to  have  occurred  if  any  of  the  transactions  or series of related
transactions  described  above  results  in  the  acquisition  of at least fifty
percent  (50%)  of the combined voting power of the Company by any fund or funds
managed  by  Warburg

<PAGE>
Dale Royal
March 27, 2002
Page 3 of 4

Pincus LLC, or any related entity, or other current 5% or greater shareholder of
the  Company.

As  an  Evolve  employee,  you  will  be  expected to abide by Company rules and
policies,  acknowledge  in  writing  that  you  have read the Company's Employee
Handbook,  and  sign  and  comply  with  the  enclosed  Employment, Confidential
Information  and  Invention  Assignment  Agreement.

In  your  work  for  Evolve,  you  will  be  expected not to use or disclose any
confidential  information,  including  trade  secrets, of any former employer or
other  person  to  whom  you have an obligation of confidentiality.  Rather, you
will  be expected to use only that information which is generally known and used
by  persons with training and experience comparable to your own, which is common
knowledge in the industry or otherwise legally in the public domain, or which is
otherwise  provided  or  developed by the Company.  During our discussions about
your proposed job duties, you assured us that you would be able to perform those
duties  within  the  guidelines  just  described.

You  agree  that  you  will  not  bring  onto  Company  premises any unpublished
documents  or  property belonging to any former employer or other person to whom
you  have  an  obligation  of  confidentiality.

Your  employment with the Company will be "at will."  This means that either you
or the Company may terminate your employment at any time, with or without cause,
and with or without advance notice.  This at-will relationship cannot be altered
except  in  a  writing  signed  by  the  Chief Executive Officer of the Company.

This  letter,  together  with  your  Employment,  Confidential  Information  and
Invention  Assignment  Agreement  forms  the complete and exclusive statement of
your  employment agreement with the Company.  It supersedes any other agreements
or  promises  made to you by anyone, whether oral or written, and it can only be
modified in a written agreement signed by you and the Chief Executive Officer of
the Company.  As required by law, this offer is subject to satisfactory proof of
your  right  to  work  in  the  United  States.

To assist us in complying with The Immigration Reform Act of 1986 which requires
employers to verify the citizenship and legal right to work of all new employees
within three business days of the time of hire, you will need to complete Part 1
of the enclosed Employee Eligibility Verification Form (I-9), dating it with the
date  of your first day at work.  You will also need to be prepared to supply to
Human  Resources  any  documents needed to satisfy the requirements of Part 2 of
the  I-9  form:  either one from list A, OR one from list B and one from list C.
The  documents  need  to  be  originals,  not facsimiles, and need only meet the
minimum  requirements.  We  have  also included a W-4 form (required for payroll
processing)  and a direct deposit form (participation is optional) which must be
completed  and  returned  to  Human  Resources  on your first day of employment.

<PAGE>
Dale Royal
March 27, 2002
Page 4 of 4

The  terms  of  this  offer  and all other compensation matters relating to your
employment  with  the Company are confidential and may not be shared with anyone
except  your  family,  professional  advisors  and  immediate  supervisor.

We  are  very  excited  about  the  possibility  of having you on board.  Please
respond to this offer no later than Monday, April 1, 2002, after which time this
offer  is withdrawn. Please fax your acceptance to our Human Resources office at
(510) 428-6900.  If you have any questions, please feel free to call me at (510)
428-6015  or  call  Ken  Bozzini  at  (510)  428-6019.

Sincerely,

/s/  Linda  Zecher

Linda Zecher
Chief Executive Officer

Accepted by:    /s/  Dale Royal                          Date:  03/28/02
              ---------------------------                     --------------
                     Dale Royal

<PAGE>FIRST AMENDMENT TO AMENDED AND RESTATED
                        LOAN AGREEMENT AND LIMITED WAIVER

     THIS  FIRST  AMENDMENT  TO  AMENDED AND RESTATED LOAN AGREEMENT AND LIMITED
WAIVER  ("AMENDMENT")  is  made  and  entered into as of April 19, 2002, between
EVOLVE  SOFTWARE,  INC.,  a Delaware corporation (herein called "BORROWER"), and
COMERICA  BANK-CALIFORNIA  ("BANK").

                                    RECITALS

     A.  Borrower  and  Bank entered into that certain Amended and Restated Loan
Agreement  dated  as  of November 13, 2001 (as the same may from time to time be
modified,  amended, supplemented, restated or superseded, the "LOAN AGREEMENT"),
pursuant to which Bank agreed to extend and maintain loans available to Borrower
upon  the  terms  and  conditions  contained  therein.  Unless otherwise defined
herein,  all terms defined in the Loan Agreement have the same meaning when used
herein.

     B.  Borrower  is presently in violation of the financial covenant set forth
in Section 8 of the Loan Agreement that Borrower maintain Maximum Leverage Ratio
not  to  exceed  2.25  for the applicable period commencing on December 31, 2001
until  March  31,  2002,  which  violation constitutes an Event of Default under
Section  10  of  the  Loan  Agreement  (the  "Current  Event  of  Default").

     C. Borrower has requested that (i) Bank waive the Current Event of Default,
and  (ii) amend the Loan Agreement and Bank is willing to do so, but only to the
extent, in accordance with the terms, subject to the conditions, and in reliance
upon  the  representations  and  warranties  set  forth  herein.

                                    AGREEMENT

     NOW,  THEREFORE,  in consideration of the foregoing recitals and the mutual
covenants  herein  set  forth and for other good and valuable consideration, the
receipt  and  sufficiency  of which are hereby acknowledged, and intending to be
legally  bound,  and  to  induce Bank to enter into this Amendment, Borrower and
Bank  hereby  agree  as  follows:

     SECTION  1.  LIMITED  WAIVER. At Borrower's request, Bank hereby waives the
Current  Event  of  Default.

     SECTION  2.  AMENDMENTS  TO  LOAN  AGREEMENT.  The Loan Agreement is Hereby
amended  as  follows:

     2.1  SECTION  8.  Sections  8.(f),  8(g) and 8(h) of the Loan Agreement are
deleted  in  their  entirety  and  the  following  is  inserted in lieu thereof:

                                        1
<PAGE>
          "FINANCIAL  COVENANTS.  Borrower  shall:

               (f)  BANK LIQUIDITY RATIO. Maintain at all times a Bank Liquidity
Ratio  of not less than 1.25:1.00. As used herein, "BANK LIQUIDITY RATIO" on any
given  date  shall  be defined as (a) the sum of cash deposited by Borrower with
Bank  plus  cash  deposited  by  Borrower  with  Custodian to (b) the sum of the
aggregate  amount  of  Committed  Revolving  Line  and  Equipment  Advances  not
otherwise  cash-collateralized  as  of  such  date.

               (g) MINIMUM UNRESTRICTED CASH. Maintain at all times, measured on
a  monthly  basis,  Unrestricted Cash of not less than $8,000,000. "UNRESTRICTED
CASH"  shall  mean  cash  deposited by Borrower with Bank plus cash deposited by
Borrower with Custodian plus the amounts on deposit in Borrower's Certificate of
Deposit  with  Bank.

               (h)  MINIMUM  REVENUE.  Measured  on  a quarterly basis, maintain
revenues  greater  than:

          during  the  quarter  ending  March  31,  2002,  $2,500,000;

          during  the  quarter  ending  June  30,  2002,  $3,500,000;

          during  the  quarter ending September 30, 2002, $4,500,000; and during
          the  quarter  ending  December  31,  2002  and

          during  each  quarter  thereafter,  $6,500,000."

     2.2     The  following  definition  is added to the list of definitions set
forth  on  Exhibit  A to the Loan Agreement, inserted in its proper alphabetical
sequence:

          "FIRST  AMENDMENT"  shall mean that certain First Amendment to Amended
and  Restated  Loan  Agreement and Limited Waiver dated as of April 19, 2002, by
and  between  Borrower  and  Bank."

     2.3  The  definition of "Loan Documents" set forth on Exhibit A to the Loan
Agreement  is  hereby  amended  by adding "the First Amendment" to the documents
listed  therein.

     SECTION  3.  LIMITATIONS  ON  AMENDMENTS.

     3.1.  The  waiver set forth in SECTION 1 above, and the amendment set forth
in  SECTION  2  above,  shall  be  limited precisely as written and shall not be
deemed  to  (i) be a waiver of or an amendment to any other term or condition of
the  Loan  Agreement  or  any  other  Loan Document, (ii) prejudice any right or
remedy  which  any  party  may  now  have  or may have in the future under or in
connection  with  the  Loan  Agreement or any other Loan Document, or (iii) be a
consent  to  any  future  waiver  or  amendment.

     3.2.  This  Amendment  shall be construed in connection with and as part of
the  Loan  Documents  and  all  terms,  conditions, representations, warranties,
covenants  and  agreements  set  forth  in  the Loan Documents, except as herein
waived  or  amended,  are hereby ratified and confirmed and shall remain in full
force  and  effect.

                                        2
<PAGE>
     SECTION 4. REAFFIRMATION AND ACKNOWLEDGEMENT. Borrower hereby reaffirms its
obligations under the Loan Documents and ratifies and reaffirms the validity and
enforceability  of all of the liens and security interests heretofore granted to
Bank pursuant to the Loan Documents, as collateral security for the Obligations,
and  acknowledges  that  all  of  such  liens  and  security  interests, and all
Collateral  heretofore pledged as security for such Obligations, continues to be
and  remain  collateral  for  such  Obligations  from and after the date hereof.

     SECTION 6. REPRESENTATIONS AND WARRANTIES. In order to induce Bank to enter
into this Amendment, Borrower hereby represents and warrants to Bank as follows:

     6.1  Immediately  after  giving  effect  to  this  Amendment  (i)  the
representations and warranties contained in the Loan Documents (other than those
which  expressly  relate to a different date) are true, accurate and complete in
all  material  respects  as  of  the date hereof and (ii) no Default or Event of
Default  has  occurred  and  is  continuing;

     6.2  Borrower  has  the  power  and  authority  to execute and deliver this
Amendment and to perform its obligations under the Loan Agreement, as amended by
this Amendment, and each of the other Loan Documents to which it is a party; and

     6.3  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, and each of the other Loan Documents to which it is a party
have  been  duly  authorized  by  all  necessary corporate action on the part of
Borrower.

     SECTION  7. CONDITIONS PRECEDENT. The legal effectiveness of this Amendment
is  subject  to  the  satisfaction of all of the following conditions precedent:

     7.1  EXECUTED  AMENDMENT.  Bank  shall  have  received  this Amendment duly
executed  and  delivered  by  Borrower and the same shall have become effective.

     7.2  WAIVER FEE. Bank shall have received from the Borrower a waiver fee in
the  amount  of  Two  Hundred  Fifty  Dollars  ($250).

     7.3  MATERIAL ADVERSE CHANGE. There shall have occurred no material adverse
change  in either (a) the business, financial condition or prospects of Borrower
as  shown on the most recent financial statements submitted to Bank or disclosed
to  Bank, respectively, and relied upon by Bank in entering into this Amendment,
or  (b)  in  the prospect of repayment of any portion of the Obligations, or (c)
the  value  or  priority  of  Bank's  security  interest  in  the  Collateral.

     7.4  NO  DEFAULT.  Other than Current Event of Default, no Event of Default
has  occurred  that  remains  uncured  and is continuing or will result from the
consummation  of  the  transactions  contemplated  by  this Amendment that would
constitute  an  Event  of  Default.

     7.5  PAYMENT  OF FEES. Bank shall have received reimbursement from Borrower
of  its  costs  and  expenses  incurred  (including,  without  limitation,  its
attorneys'  fees  and  expenses)  in  connection  with  this  Amendment  and the
transactions  contemplated  hereby.

                                        3
<PAGE>
     7.6  OTHER  DOCUMENTS.  Bank  shall  have  received  such  other documents,
information and items from Borrower as it shall reasonably request to effectuate
the  transactions  contemplated  hereby.

     SECTION  8.  COUNTERPARTS; EFFECTIVENESS. This Amendment may be executed in
any  number  of counterparts, each of which when so delivered shall be deemed an
original,  but all such counterparts taken together shall constitute but one and
the  same  instrument.  Each  such  agreement  shall  become  effective upon the
execution  of  a counterpart hereof or thereof by each of the parties hereto and
telephonic  notification  that  such  executed counterparts has been received by
Borrower  and  Bank.

     IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to
be  executed  and  delivered by its duly authorized officer as of the date first
written  above.

BANK:                                      BORROWER:

COMERICA  BANK-CALIFORNIA                  EVOLVE  SOFTWARE,  INC.,

                                           a  Delaware  corporation

By:  /s/  Philip  Koblis                   By:  /s/  Kenneth  J.  Bozzini
     --------------------------------           --------------------------------
Name:  Philip  Koblis                      Name:  Kenneth  J.  Bozzini
                                                --------------------------------
Title:  Assistant  Vice  President         Title:   CFO
                                                 -------------------------------

                                        4
<PAGE>

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