Document:

Security Agreement dtd 4/15/2003

EXHIBIT 10.3 
 
SAGENT TECHNOLOGY, INC. 
SECURITY AGREEMENT 
 
This SECURITY AGREEMENT dated as of April 15, 2003 (as amended, modified or otherwise supplemented from time to time, this “Security Agreement”) is executed by Sagent Technology, Inc., a Delaware corporation with
its principal executive offices at 800 West El Camino Real, Suite 300, Mountain View, California 94040 (“Debtor”), in favor of Group 1 Software, Inc., a Delaware corporation with its principal executive offices at 4200 Parliament Place,
Suite 600, Lanham, Maryland, 20706 (“Secured Party”). 
 
RECITALS 
 
A.    Pursuant to a Note Purchase Agreement dated as of the date hereof between Debtor and Secured Party (the “Note Purchase Agreement”), Debtor will issue to Secured Party, subject to the terms and
conditions set forth in the Note Purchase Agreement, one or more secured promissory notes in the aggregate principal amount not to exceed $7,000,000 (collectively, the “Notes”). 
 
B.    In order to induce Secured Party to extend the credit evidenced by the Notes,
Debtor has agreed to enter into this Security Agreement and to grant to Secured Party the security interest in the Collateral described below, subject to the terms and conditions set forth in this Security Agreement. 
 
AGREEMENT 
 
NOW, THEREFORE, in consideration of the above recitals and for
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Debtor hereby agrees with Secured Party as follows: 
 
1.    Definitions.    When used in this Security Agreement, the following terms have the following
respective meanings: 
 
“Accounts” means
“accounts” as such term is defined in the UCC. 
 
“Collateral” has the meaning given to that term in Section 3 hereof. 
 
“Obligations” means all loans, advances, debts, liabilities and obligations owed by Debtor to Secured Party pursuant to the terms of the Notes and the other Transaction Documents, including,
all interest, fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by Debtor thereunder, in each case, whether direct or indirect, absolute or contingent, due or to become due, and
whether or not arising after the commencement of a proceeding under Title 11 of the United States Code (11 U.S.C. Section 101 et seq.), as amended from time to time (including post-petition interest), and whether or not allowed or allowable
as a claim in any such proceeding. 
 
“UCC” means the Uniform Commercial Code as in effect in the State of California and State of Delaware from time to time, as applicable. All capitalized terms not 

otherwise defined herein shall have the respective meanings given in the Notes. Unless otherwise defined herein, all terms defined in the UCC
have the respective meanings given to those terms in the UCC. 
 
2.    Term and Termination. 
 
(a)    Term.    The term of this Security Agreement shall begin on the date stated above and shall continue and be binding upon Debtor until all the Obligations have been indefeasibly fully
paid and satisfied in accordance with the terms hereof and of the Notes. 
 
(b)    Termination Statement.    Upon payment in full of the Obligations, Secured Party shall, upon request, deliver to Debtor a termination statement releasing the Collateral from the
liens created by this Agreement and do all further acts and execute and deliver all instruments and documents necessary to terminate the security interests granted herein. 
 
3.    Grant of Security Interest.    Subject to the terms and
conditions of this Security Agreement, as security for the Obligations, Debtor pledges to Secured Party and grants to Secured Party a security interest in all right, title and interests of Debtor in and to the property described in Attachment 1
hereto, whether now existing or hereafter from time to time acquired (collectively, the “Collateral”). Notwithstanding the foregoing, the security interest granted herein shall not extend to and the term “Collateral” shall not
include any property, rights or licenses to the extent the granting of a security interest therein (i) would be contrary to applicable law, (ii) is prohibited by or would constitute a default under any agreement or document governing such property,
rights or licenses (but only to the extent such prohibition is enforceable under applicable law), or (iii) the outstanding capital stock of a “controlled foreign corporation” (as defined in the Internal Revenue Code of 1986, as amended) in
excess of 65% of the voting power of all classes of capital stock of such controlled foreign corporation entitled to vote. 
 
4.    Representations and Warranties.    Debtor represents and warrants to Secured Party that:

 
(a)    Debtor is the owner
of the Collateral (or, in the case of after-acquired Collateral, at the time Debtor acquires rights in the Collateral, will be the owner thereof). There are no Liens on any of the Collateral, other than Permitted Liens; 
 
(b)    Upon the filing of UCC-1 financing
statements in the appropriate filing offices, Secured Party will have (or in the case of after-acquired Collateral, at the time Debtor acquires rights therein, will have) a perfected security interest in the Collateral to the extent that a security
interest in the Collateral can be perfected by such filing, except for Permitted Liens; 
 
(c)    All accounts receivable and payment intangibles are genuine and enforceable against the party obligated to pay the same; and 
 
(d)    All Collateral consisting of
tangible personal property is located at the Company’s offices listed on Attachment 2, except for Collateral which is mobile by nature. 
 
5.    Covenants Relating to Collateral.    Debtor hereby covenants and agrees: 
 

2 

 
(a)    Subject to the terms of the Pledge Agreement, to perform all acts that may be necessary (including such actions as Secured Party may reasonably request) to maintain, preserve, protect and perfect the
Collateral, the Lien granted to Secured Party therein and the perfection and priority of such Lien, except for Permitted Liens, it being agreed and understood that Debtor is not required to obtain account control agreements in favor of Secured
Party; 
 
(b)    Not to create
or suffer to exist any Lien upon any Collateral, except Permitted Liens; 
 
(c)    Not to use or permit any Collateral to be used (i) in violation in any material respect of any applicable law, rule or regulation, or (ii) in violation of any policy of insurance covering the
Collateral; 
 
(d)    To pay
promptly when due all taxes and other governmental charges, all Liens and all other charges now or hereafter imposed upon or affecting any Collateral; 
 
(e)    Without written notice to Secured Party, (i) not to change Debtor’s name, place of business (or, if Debtor
has more than one place of business, its chief executive office), location of any material portion of the Collateral or the office in which Debtor’s records relating to accounts receivable and payment intangibles are kept, (ii) not to change
Debtor’s state of incorporation; 
 
(f)    To procure, execute and deliver from time to time any endorsements, assignments, financing statements and other writings reasonably deemed necessary or appropriate by Secured Party to perfect, maintain and
protect its Lien hereunder and the priority thereof; 
 
(g)    Not to surrender or lose possession of (other than to Secured Party), sell, encumber, lease, rent, or otherwise dispose of or transfer any Collateral or right or interest therein, and to keep the Collateral
free of all Liens except Permitted Liens; provided that Debtor may sell, lease, transfer, license or otherwise dispose of any of the Collateral in the ordinary course of business consisting of (i) the sale of inventory, (ii) sales of worn-out or
obsolete equipment, (iii) non-exclusive licenses and similar arrangements for the use of the property of Debtor and (iv) the sale or factoring of the promissory notes that were issued to the Company by former employees of the Company; 
 
(h)    To collect, enforce and receive
delivery of the accounts receivable and payment intangibles in accordance with past practice until otherwise notified by Secured Party; 
 
(i)    To maintain, at its expense, insurance policies insuring the Collateral against loss or damage by fire, theft,
explosion, sprinklers and all other hazards and risks, such policies to (i) be of a type and in coverage amounts as are customary to businesses similar to Company’s and (ii) name Secured Party as loss payee thereunder; 
 
(j)    To comply with all material
requirements of law relating to the production, possession, operation, maintenance and control of the Collateral; and 
 

3 

 
(k)    To permit Secured Party and its representatives the right, at any time during normal business hours, upon reasonable prior notice, to visit and inspect the properties of Debtor and its corporate, financial
and operating records, and make abstracts therefrom, and to discuss Debtor’s affairs, finances and accounts with its directors and officers. 
 
6.    Default. 
 
(a)    Default. Debtor shall be deemed in default under this Security Agreement upon the occurrence and during the
continuance of an Event of Default (as defined in the Notes). 
 
(b)    Remedies Upon Default. Upon the occurrence and during the continuance of any such Event of Default, Secured Party shall have the rights of a secured creditor under the UCC, all rights granted by this
Security Agreement and by law, including the right to: 
 
(i)    Settle or adjust disputes and claims directly with account debtors for amounts, upon terms and in whatever order that the Security Party reasonably considers advisable; 
 
(ii)    Make such
payments and do such acts as Secured Party considers necessary or reasonable to protect its security interest in the Collateral. Debtor agrees to assemble the Collateral if Secured Party so requires, and to make the Collateral available to Secured
Party in a mutually convenient location as Secured Party may designate. Debtor authorizes Secured Party to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or any part of it, and to pay,
purchase, contest or compromise any encumbrance, charge or Lien, which in Secured Party’s determination appears to be prior or superior to its security interest and to pay all expenses incurred in connection therewith. With respect to any of
the Debtor’s owned or leased premises, the Debtor hereby grants Secured Party a license to, upon the occurrence and continuance of an Event of Default, enter into possession of such premises and to occupy the same, without charge, in order to
exercise any of Secured Party’s rights or remedies provided herein, at law, in equity or otherwise; 
 
(iii)    Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale
and sell (in the manner provided for herein) the Collateral. Secured Party is hereby granted a license or other right, solely pursuant to the provisions of this Section 6(b), to use, without charge, the Debtor’s intellectual property, or any
property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale and selling any Collateral and, in connection with Secured Party’s exercise of its rights under this Section 6(b), Debtor’s
rights under all licenses and all franchise agreements shall inure to Secured Party’s benefit; 
 
(iv)    Sell the Collateral at either a public or private sale, or both, by way of one or more
contracts or transactions, for cash or on terms, in such manner and at such places (including Debtor’s premises) in a commercially reasonable manner, and apply any proceeds to the Obligations in whatever manner or order Secured Party deems
appropriate; 
 

4 

 
(v)    Credit bid and purchase at any public sale in accordance with the UCC or comparable law of any jurisdiction; and 
 
(vi)    Notify any Person owing funds to the Debtor of Secured Party’s security interest in such
funds and verify the amount of such Account and Debtor agrees to collect all amounts owing to Debtor for Secured Party, receive in trust all payments as Secured Party’s trustee and immediately deliver such payments to Secured Party in their
original form as received from the account debtor, with proper endorsements for deposit. 
 
Any deficiency that exists after disposition of the Collateral as provided above will remain due and payable pursuant to the terms of the Notes. 
 
(c)    Power of
Attorney.    Effective only during the existence of an Event of Default, Debtor hereby irrevocably appoints Secured Party (and any of Secured Party’s designated officers or employees) as Debtor’s true and lawful
attorney to: 
 
(i)    send requests for verification of Accounts or notify account debtors of Secured Party’s security interest in the Accounts; 
 
(ii)    endorse Debtor’s name on any checks or other forms of
payment or security that may come into Secured Party’s possession; 
 
(iii)    sign Debtor’s name on any invoice or bill of lading relating to any Account, drafts against account debtors, schedules and assignments of Accounts, verifications of
Accounts and notices to account debtors; 
 
(iv)    after acceleration of the Obligations, dispose of any Collateral; 
 
(v)    make, settle and adjust all claims under and decisions with respect to Debtor’s policies
of insurance; 
 
(vi)    settle and adjust disputes and claims respecting the accounts directly with account debtors, for amounts and upon terms which Secured Party determines to be reasonable; 
 
(vii)    after
acceleration of the Obligations, to transfer the Intellectual Property into the name of Secured Party or a third party to the extent permitted under the UCC; and 
 
(viii)    to file, in its sole discretion, one or more financing or
continuation statements and amendments thereto, relative to any of the Collateral; provided that Secured Party may exercise such power of attorney to sign the name of Debtor on any of the documents described in Section 8 of this Security Agreement
regardless of whether an Event of Default has occurred. 
 
The appointment of Secured Party as Debtor’s attorney-in-fact, and each and every one of Secured Party’s rights and powers, being coupled with an interest, is irrevocable until all of the Obligations have been fully
satisfied and performed. 
 

5 

 
7.    Material Adverse Effect.    In the event that there shall have occurred any event, condition or state of facts that could reasonably be expected to have a Material Adverse Effect, then
Secured Party shall have the right to take any and all actions as are reasonably necessary to protect Secured Party’s interest in the Collateral, including the right to: 
 
(a)    Make such payments and do such acts as Secured Party considers necessary or
reasonable to protect its security interest in the Collateral; 
 
(b)    Notify any Person owing funds to the Debtor of Secured Party’s security interest in such funds and verify the amount of such Account; and Debtor agrees to collect all amounts owing to Debtor for
Secured Party, receive in trust all payments as Secured Party’s trustee and immediately deliver such payments to Secured Party in their original form as received from the account debtor, with proper endorsements for deposit; and 
 
(c)    Settle or adjust disputes and
claims directly with account debtors for amounts, upon terms and in whatever order that the Security Party reasonably considers advisable. 
 
8.    Authorization to File; Delivery of Additional Documentation Required.    Debtor authorizes
Lender to file financing statements without notice to Company, with all appropriate jurisdictions, as Lender deems appropriate, in order to perfect or protect Lender’s security interest in the Collateral. The Company shall execute and deliver
to Lender, at the request of Lender, all documents that Lender may reasonably request, in form satisfactory to Lender, to perfect and continue perfected Lender’s security interest in the Collateral and in order to fully consummate all of the
transactions contemplated under the Transaction Documents. 
 
9.    Miscellaneous.    (a) Notices.    All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall be in writing
and faxed or delivered by courier to each party as follows: 
 
if
to Secured Party, to; 
 
Group 1
Software, Inc. 
4200 Parliament Place, Suite 600 
Lanham, Maryland 20706 
Tel: (301) 918-0400 
Fax: (301) 918-0430 
Attention: General Counsel 
 
with a copy to: 
 
Cadwalader, Wickersham & Taft LLP 
100 Maiden Lane 
New York, New York 10038 
Tel: (212) 504-6057 
Fax: (212) 504-6666 
Louis J. Bevilacqua, Esq. 
 

6 

 
or if to Debtor, to;

 
Sagent Technology, Inc.

800 West El Camino Real 
Suite 300 
Mountain View, CA 94040 
Tel: (650) 815-3100 
Fax: (650) 815-3500 
Attention: Chief Executive Officer 
 
with a copy to: 
 
Wilson Sonsini Goodrich & Rosati 
650 Page Mill Road 
Palo Alto, CA 94304 
Tel: (650) 493-9300 
Fax: (650) 493-6811 
Attention: Stephen M. Welles, Esq. 
 
All such notices and communications shall be effective (a) when sent by Federal Express or other overnight
service of recognized standing, on the third business day following the deposit with such service; and (b) when faxed, upon confirmation of receipt. 
 
(b)    Nonwaiver.    No failure or delay on Secured Party’s part in exercising any right
hereunder shall operate as a waiver thereof or of any other right nor shall any single or partial exercise of any such right preclude any other further exercise thereof or of any other right. 
 
(c)    Amendments and
Waivers.    This Security Agreement may not be amended or modified, nor may any of its terms be waived, except by written instruments signed by Debtor and Secured Party. Each waiver or consent under any provision hereof shall be
effective only in the specific instances for the purpose for which given. 
 
(d)    Assignments.    This Security Agreement shall be binding upon and inure to the benefit of Secured Party and Debtor and their respective successors and assigns; provided,
however, that Debtor may not sell, assign or delegate rights and obligations hereunder without the prior written consent of Secured Party. 
 
(e)    Payments Free of Taxes, Etc.    All payments made by Debtor under this Security Agreement
shall be made by Debtor free and clear of and without deduction for any and all present and future taxes, levies, charges, deductions and withholdings. In addition, Debtor shall pay upon demand any stamp or other taxes, levies or charges of any
jurisdiction with respect to the execution, delivery, registration, performance and enforcement of this Security Agreement. Upon request by Secured Party, Debtor shall furnish evidence satisfactory to Secured Party that all requisite authorizations
and approvals by, and notices to and filings with, governmental authorities and regulatory bodies have been obtained and made and that all requisite taxes, levies and charges have been paid. 
 

7 

 
(f)    Partial Invalidity.    If at any time any provision of this Security Agreement is or becomes illegal, invalid or unenforceable in any respect under the law or any jurisdiction, neither
the legality, validity or enforceability of the remaining provisions of this Security Agreement nor the legality, validity or enforceability of such provision under the law of any other jurisdiction shall in any way be affected or impaired thereby.

 
(g)    Headings.    Headings in this Security Agreement are for convenience of reference only and are not part of the substance hereof or thereof. 
 
(h)    Construction.    Each of this Security Agreement and the Notes are the result of negotiations among, and has been reviewed by, Debtor, Secured Party and their respective counsel.
Accordingly, this Security Agreement and the Notes shall be deemed to be the product of all parties hereto, and no ambiguity shall be construed in favor of or against Debtor or Secured Party. 
 
(i)    Entire
Agreement.    This Security Agreement and the other Transaction Documents, taken together, constitute and contain the entire agreement of Debtor and Secured Party and supersede any and all prior agreements, negotiations,
correspondence, understandings and communications among the parties, whether written or oral, respecting the subject matter hereof. 
 
(j)    Governing Law.    This Security Agreement shall be governed by and construed in accordance
with the laws of the State of California without reference to conflicts of law rules (except to the extent governed by the UCC) THE PARTIES HERETO, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
 
(k)    Counterparts.     This Security Agreement may be executed in any number of counterparts,
each of which shall be an original, but all of which together shall be deemed to constitute one instrument. 
 
[The remainder of this page is intentionally left blank] 
 
 

8 

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

	 SAGENT TECHNOLOGY, INC.
 a Delaware corporation

	
	 By:
	 	 /s/    ANDRES BOISVERT

	 	 	 Name:  Andres Boisvert
 Title:  Chief Executive Officer

 

	 GROUP 1 SOFTWARE, INC.
 a Delaware corporation

	
	 By:
	 	 /s/    MARK FUNSTON

	 	 	 Name:  Mark Funston
 Title:  Chief Financial Officer

 
[Signature Page to Security Agreement] 
 

 
ATTACHMENT 1

 
TO SECURITY AGREEMENT 
 
All right, title, interest, claims and demands of Debtor in
and to all of its assets and properties including, without limitation, the following: 
 
(i)    All goods and equipment now owned or hereafter acquired, including, without limitation, all
laboratory equipment, computer equipment, office equipment, machinery, fixtures, vehicles, and any interest in any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the
foregoing, wherever located; 
 
(ii)    All inventory now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products
including such inventory as is temporarily out of Debtor’s custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the
foregoing and any documents of title representing any of the above, and Debtor’s books relating to any of the foregoing; 
 
(iii)    All contract rights, general intangibles, health care insurance receivables, payment
intangibles and commercial tort claims, now owned or hereafter acquired, including, without limitation, all patents, patent rights (and applications and registrations therefor), trademarks and service marks (and applications and registrations
therefor), inventions, copyrights, mask works (and applications and registrations therefor), trade names, trade styles, software and computer programs, trade secrets, methods, processes, know how, drawings, specifications, descriptions, and all
memoranda, notes, and records with respect to any research and development, goodwill, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, computer programs, computer
disks, computer tapes, literature, reports, catalogs, design rights, income tax refunds, payments of insurance and rights to payment of any kind and whether in tangible or intangible form or contained on magnetic media readable by machine together
with all such magnetic media; 
 
(iv)    All now existing and hereafter arising accounts, contract rights, royalties, license rights and all other forms of obligations owing to Debtor arising out of the sale or lease of goods, the licensing of
technology or the rendering of services by Debtor (subject, in each case, to the contractual rights of third parties to require funds received by Debtor to be expended in a particular manner), whether or not earned by performance, and any and all
credit insurance, 

guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Debtor and Debtor’s books relating to
any of the foregoing; 
 
(v)    All documents, cash, deposit accounts, letters of credit, letter of credit rights, supporting obligations, certificates of deposit, instruments, chattel paper, electronic chattel paper, tangible chattel
paper and investment property, including, without limitation, all securities, whether certificated or uncertificated, security entitlements, securities accounts, commodity contracts and commodity accounts, and all financial assets held in any
securities account or otherwise, wherever located, now owned or hereafter acquired and Debtor’s books relating to the foregoing; 
 
(vi)    Any and all claims, rights and interests in any of the above and all substitutions for,
additions and accessions to and proceeds thereof, including, without limitation, insurance, condemnation, requisition or similar payments and the proceeds thereof; and 
 
(vii)    Any Lien obtained by Debtor from any third party as security for
the payment or enforcement of accounts. 
 
 

2 

 
ATTACHMENT 2

 
TO SECURITY AGREEMENT 
 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	15.	 	Muenchner Straße 11, D-85540 Haar bei Muenchen, Germany 

 

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

 

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

 

	18.	 	Suite 7-5, Level 7, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450 (closing in May 2003)Pledge Agreement dtd 4/15/2003

 
EXHIBIT 10.4

PLEDGE AGREEMENT 
 
PLEDGE AGREEMENT, dated as of April 15, 2003 (as amended, restated, supplemented or otherwise modified from time to time, this
“Agreement”), made by Sagent Technology, Inc., a Delaware corporation with its principal executive offices at 800 West El Camino Real, Suite 300, Mountain View, California 94040 (the “Company”), in favor of Group I
Software, Inc., a Delaware corporation with its principal executive offices at 4200 Parliament Place, Suite 600, Lanham, Maryland, 20706 (the “Lender”). Except as otherwise defined herein, terms used herein and defined in the
Purchase Agreement (as defined below) shall be used herein as therein defined. 
 
W I T N E S S E T H: 
 
WHEREAS, the Company and the Lender have entered into a Note Purchase Agreement, dated as of April 15, 2003
(as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”), providing for the making of certain loans in the amount of up to $7,000,000 (the “Loans”); 
 
WHEREAS, it is a condition precedent to the making of the
Loans under the Purchase Agreement that the Company shall have executed and delivered to the Lender this Agreement; 
 
WHEREAS, the Company desires to execute this Agreement to satisfy the conditions described in the preceding paragraph; 
 
NOW, THEREFORE, in consideration of the benefits accruing to
the Company, the receipt and sufficiency of which are hereby acknowledged, the Company hereby makes the following representations and warranties to the Lender and hereby covenants and agrees with the Lender as follows: 
 
1.    SECURITY FOR
OBLIGATIONS.    This Agreement is made by the Company for the benefit of the Lender to secure: 
 
(i)    the full and prompt payment when due (whether at the stated maturity, by acceleration or
otherwise) of all obligations (including obligations which, but for the automatic stay under Section 362(a) of the Bankruptcy Code, would become due) and liabilities of the Company, now existing or hereafter incurred under, arising out of or in
connection with any Transaction Document (as defined in the Purchase Agreement) to which the Company is a party and the due performance of and compliance by the Company with the terms of each such Transaction Document (all such obligations and
liabilities under this clause (i), being herein collectively called the “Transaction Document Obligations”); 
 
(ii)    any and all sums advanced by the Lender in order to preserve the Collateral and/or its
security interest therein; 
 
 

 
(iii)    in the event of any proceeding for the collection of the Obligations (as defined below) or the enforcement of this Agreement, after an Event of Default shall have occurred and be continuing, the
reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing of or realizing on the Collateral, or of any exercise by the Lender of its rights hereunder, together with reasonable attorneys’ fees and
court costs; and 
 
(iv)    all amounts paid by the Lender as to which the Lender has the right to reimbursement under Section 11 of this Agreement; 
 
all such obligations, liabilities, sums and expenses set forth in clauses (i) through (iv) of this Section 1 being herein
collectively called the “Obligations.” 
 
2.    DEFINITION OF STOCK, NOTES, SECURITIES, ETC.    (a) As used herein, (i) the term “Stock” shall mean (x) all of the issued and outstanding shares of stock of any
corporation (including a corporation that is not organized under the laws of the United States or any State or territory thereof (a “Foreign Corporation”)) at any time directly owned by the Company, and (y) all of the voting and/or
economic membership interests of an entity which is a limited liability company, partnership or other unincorporated entity at any time directly owned by the Company; (ii) the term “Notes” shall mean all promissory notes at any time
issued to, payable to or to the order of, or held by, the Company; provided, however, that the term “Notes” shall not mean the promissory notes that were issued to the Company by former employees of the Company; and
(iii) the term “Securities” shall mean the collective reference to the Stock and Notes. 
 
(b)    The Company represents and warrants that as of the date hereof: (a) each Subsidiary (as defined in the Purchase
Agreement) of the Company is listed on Annex A hereto; (b) the Stock held by the Company consists of the number and type of shares of Stock as described in Annex B hereto; (c) such Stock constitutes that percentage of the issued and outstanding
capital stock of the issuing company as set forth in Annex B hereto; (d) the Notes held by the Company consist of the promissory notes described in Annex C hereto; (e) the Company is the holder of record and sole beneficial owner of the
Company’s Stock and Notes and there exist no options or preemptive rights in respect of any of the Stock; and (f) on the date hereof, the Company owns or possesses no other Securities except as described on Annexes B and C hereto. 
 
(c)    All Stock at any time pledged or
required to be pledged hereunder is hereinafter called the “Pledged Stock,” all Notes at any time pledged or required to be pledged hereunder are hereinafter called the “Pledged Notes,” all Pledged Stock and Pledged Notes
together are called the “Pledged Securities”; and the Pledged Securities, together with all proceeds thereof, including any securities and moneys received and at the time held by the Lender hereunder, are hereinafter called the
“Collateral.” 
 
(d)    The Company has no Subsidiary which is a Foreign Corporation and has operations or assets material to the business, operations or financial condition of the Company 
 

2 

 
(each such Subsidiary, a
“Material Foreign Subsidiary”) other than as set forth on Annex A hereto. 
 
3.    PLEDGE OF SECURITIES, ETC. 
 
3.1    Pledge.    To secure the prompt and complete payment and performance when due of all
of the Obligations and for the purposes set forth in Section 1, the Company hereby: (i) grants to the Lender for the benefit of the Lender a continuing security interest of first priority in all of the Collateral owned by the Company; provided that
the Company shall only grant a security interest hereunder in 65% of the Stock of each Material Foreign Subsidiary and the Company shall not be required to grant any security interest in any other Foreign Corporation; (ii) pledges and deposits as
security with the Lender for the benefit of the Lender the Securities (as limited by clause (i) in the case of Securities representing interests in Material Foreign Subsidiaries) owned by the Company on the date hereof, if any, and delivers to the
Lender certificates or instruments therefor, duly endorsed in blank in the case of Notes and accompanied by undated stock powers duly executed in blank by the Company (and accompanied by any transfer tax stamps required in connection with the pledge
of such securities) in the case of Stock, or such other instruments of transfer as are acceptable to the Lender; provided, with respect to such certificates or instruments of Sagent France, S.A., Sagent Technology GmbH and Sagent UK Ltd., the
Company shall deliver such instruments or certificates, to the extent such Securities can be certificated under applicable law, as the case may be, within fifteen (15) days from the date hereof, and (iii) assigns, transfers, hypothecates, mortgages,
charges and sets over to the Lender all of the Company’s right, title and interest in and to such Securities (and in and to the certificates or instruments evidencing such Securities), to be held by the Lender, upon the terms and conditions set
forth in this Agreement. 
 
3.2    Subsequently Acquired Securities.    If the Company shall acquire (by purchase, stock dividend or otherwise) any additional Securities (other than Foreign Corporations which are
not Material Foreign Subsidiaries) at any time or from time to time after the date hereof, the Company will forthwith pledge and deliver such Securities (or certificates or instruments representing such Securities) as security to the Lender and
deliver to the Lender certificates or instruments thereof, in the case of Notes, duly endorsed in blank, and in the case of Stock, accompanied by undated stock powers duly executed in blank by the Company (and accompanied by any transfer tax stamps
required in connection with the pledge of such Securities), or such other instruments of transfer as are reasonably acceptable to the Lender, and will promptly thereafter deliver to the Lender a certificate executed by an Authorized Officer of the
Company describing such Securities and certifying that the same have been duly pledged with the Lender pursuant to the terms and conditions of this Agreement. The Company shall not be required at any time to pledge hereunder more than 65% of the
total combined voting power of all classes of capital stock entitled to vote of any Foreign Corporation. 
 
3.3    Uncertificated Securities, Security Entitlements and Partnership
Interests.    Notwithstanding anything to the contrary contained in Sections 3.1 and 3.2, if any Securities (whether now owned or hereafter acquired) are uncertificated securities or security entitlements, the Company shall
promptly notify the Lender thereof, and shall promptly take all actions reasonably required to perfect the security interest of the Lender under applicable law (including, in any event, under Sections 9-312 and 8-106(c) or (d) of the Uniform
Commercial Code if 
 

3 

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

 
4.    APPOINTMENT OF
SUB-AGENTS; ENDORSEMENTS, ETC.    The Lender shall have the right to appoint one or more sub-agents for the purpose of retaining physical possession of the Pledged Securities, which may be held (in the discretion of the
Lender) in the name of the Company, endorsed or assigned in blank or, following an Event of Default which is continuing, in favor of the Lender or any nominee or nominees of the Lender or a sub-agent appointed by the Lender. 
 
5.    VOTING, ETC., WHILE NO EVENT OF
DEFAULT.    Unless and until an Event of Default shall have occurred and be continuing, the Company shall be entitled to exercise all voting rights attaching to any and all Pledged Securities owned by it, and to give
consents, waivers or ratifications in respect thereof; provided that no vote shall be cast or any consent, waiver or ratification given or any action taken which would violate, result in a breach of any covenant contained in, or be materially
inconsistent with, any of the terms of this Agreement, the Purchase Agreement or any other Transaction Document, or which would have the effect of materially impairing the value of the Collateral or any part thereof or the position or interests of
the Lender or any other Lender therein. All such rights of a Company to vote and to give consents, waivers and ratifications shall cease in case an Event of Default shall occur and be continuing and Section 7 hereof shall become applicable.

 
6.    DIVIDENDS AND OTHER
DISTRIBUTIONS.    Unless and until an Event of Default shall have occurred and be continuing, all cash dividends or other amounts payable in respect of the Pledged Securities shall be paid to the Company. The Lender shall
also be entitled to receive directly, and to hold as part of the Collateral: 
 
(i)    all other or additional stock, or other securities or property (other than cash) paid or distributed by way of dividend or otherwise in respect of the Pledged Stock;

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

 

4 

 
(iii)    all other or additional stock or other securities or property (including cash which may be paid in respect of the Collateral by reason of any consolidation, merger, exchange of stock, conveyance of
assets, liquidation or similar corporate reorganization), 
 
in
each case other than any stock of a Foreign Corporation which does not constitute Stock. All dividends, distributions or other payments which are received by the Company contrary to the provisions of this Section 6 or Section 7 shall be received in
trust for the benefit of the Lender and shall be forthwith be delivered to the Lender as Collateral in the same form as so received (with any necessary endorsement). 
 
7.    REMEDIES IN CASE OF AN EVENT OF DEFAULT.    In case an
Event of Default shall have occurred and be continuing, the Lender shall be entitled to exercise all of the rights, powers and remedies (whether vested in it by this Agreement or any other Transaction Document or by law) for the protection and
enforcement of its rights in respect of the Collateral, including, without limitation, all the rights and remedies of a secured party upon default under the Uniform Commercial Code, and the Lender shall be entitled, without limitation, to exercise
any or all of the following rights, which the Company hereby agrees to be commercially reasonable: 
 
(i)    to receive all amounts payable in respect of the Collateral otherwise payable under Section 6
to the Company; 
 
(ii)    to transfer all or any part of the Collateral into the Lender’s name or the name of its nominee or nominees; 
 
(iii)    to accelerate any Pledged Note as and when it may be accelerated in accordance with its
terms, and take any other lawful action to collect upon any Pledged Note (including, without limitation, to make any demand for payment thereon); 
 
(iv)    to vote all or any part of the Pledged Stock (in each case whether or not transferred into the
name of the Lender) and give all consents, waivers and ratifications in respect of the Collateral and otherwise act with respect thereto as though it were the outright owner thereof (the Company hereby irrevocably constituting and appointing the
Lender the proxy and attorney-in-fact of the Company, with full power of substitution to do so); and 
 
(v)    at any time or from time to time to sell, assign and deliver, or grant options to purchase, all
or any part of the Collateral, or any interest therein, at any public or private sale, without demand of performance or advertisement or otherwise (all of which are hereby waived by the Company) or to redeem, for cash, on credit or for other
property, for immediate or future delivery without any assumption of credit risk, and for such price or prices and on such terms as the Lender in its reasonable discretion may determine, provided that at least 10 days’ notice of the time and
place of any such sale shall be given to the Company. The Lender shall not be obligated to make such sale of Collateral regardless of whether any such notice of sale has theretofore been given. Each purchaser at any such sale shall hold the property
so sold absolutely free from any claim or right on the part of the Company, and the Company hereby waives and releases to the 
 

5 

fullest extent permitted by law any right or equity of redemption with respect to the
Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Collateral and any other security for the Obligations or otherwise. At any such sale, unless prohibited by applicable law, the Lender may bid for and
purchase all or any part of the Collateral so sold free from any such right or equity of redemption. The Lender shall not be liable for failure to collect or realize upon any or all of the Collateral or for any delay in so doing nor shall it be
under any obligation to take any action whatsoever with regard thereto. 
 
8.    REMEDIES, ETC., CUMULATIVE.    Each right, power and remedy of the Lender provided for in this Agreement or any other Transaction Document, or now or hereafter existing at
law or in equity or by statute shall be cumulative and concurrent and shall be in addition to every other such right, power or remedy. The exercise or beginning of the exercise by the Lender or any other Lender of any one or more of the rights,
powers or remedies provided for in this Agreement or any other Transaction Document or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by the Lender or any other Lender
of all such other rights, powers or remedies, and no failure or delay on the part of the Lender to exercise any such right, power or remedy shall operate as a waiver thereof. Unless otherwise required by the Transaction Documents, no notice to or
demand on the Company in any case shall entitle it to any other or further notice or demand in similar or other circumstances or constitute a waiver of any of the rights of the Lender or any other Lender to any other further action in any
circumstances without demand or notice. The Lender agrees that this Agreement may be enforced only by the action of the Lender. 
 
9.    APPLICATION OF PROCEEDS.    It is understood and agreed that the Company shall remain
liable to the extent of any deficiency between (x) the amount of the Obligations satisfied with proceeds of the Collateral and (y) the aggregate outstanding amount of such Obligations. 
 
10.    PURCHASERS OF COLLATERAL.    Upon any sale of the
Collateral by the Lender hereunder (whether by virtue of the power of sale herein granted, pursuant to judicial process or otherwise), the receipt of the Lender or the officer making the sale shall be a sufficient discharge to the purchaser or
purchasers of the Collateral so sold, and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Lender or such officer or be answerable in any way for the misapplication or
nonapplication thereof. 
 
11.    INDEMNITY.    The Company agrees to indemnify and hold harmless the Lender as set forth in the Note. In no event shall the Lender be liable, in the absence of negligence or
willful misconduct on its part, for any matter or thing in connection with this Agreement other than to account for moneys or other property actually received by it in accordance with the terms hereof. 
 

6 

 
12.    FURTHER ASSURANCES; POWER-OF-ATTORNEY.    (a) Subject to Section 3.4 hereof, the Company agrees that it will join with the Lender in executing and, at the Company’s own
expense, file and refile under the Uniform Commercial Code such financing statements, continuation statements and other documents in such offices as the Lender may reasonably deem necessary or appropriate and wherever required or permitted by law in
order to perfect and preserve the Lender’s security interest in the Collateral hereunder and hereby authorizes the Lender to file financing statements and amendments thereto relative to all or any part of the Collateral without the signature of
the Company where permitted by law, and agrees to do such further acts and things and to execute and deliver to the Lender such additional conveyances, assignments, agreements and instruments as the Lender may reasonably require or reasonably deem
advisable to carry into effect the purposes of this Agreement or to further assure and confirm unto the Lender its rights, powers and remedies hereunder or thereunder. 
 
(b)    The Company hereby appoints the Lender the Company’s attorney-in-fact, with
full authority in the place and stead of the Company and in the name of the Company or otherwise, to act from time to time after the occurrence and during the continuance of an Event of Default in the Lender’s reasonable discretion to take any
action and to execute any instrument which the Lender may deem necessary or advisable to accomplish the purposes of this Agreement. 
 
13.    TRANSFER BY THE COMPANY.    The Company will not sell or otherwise dispose of, grant
any option with respect to, or mortgage, pledge or otherwise encumber any of the Collateral or any interest therein except in accordance with the terms of this Agreement, the Purchase Agreement and the other Transaction Documents. 
 
14.    REPRESENTATIONS, WARRANTIES AND
COVENANTS OF THE COMPANY.    (a) The Company represents, warrants and covenants that: 
 
(i)    it is, or at the time when pledged hereunder will be, the legal, beneficial and record owner
of, and has (or will have) good and marketable title to, all Securities pledged by it hereunder, subject to no pledge, lien, mortgage, hypothecation, security interest, charge, option or other encumbrance whatsoever, except the Permitted Liens;

 
(ii)    it
has full power, authority and legal right to pledge all the Securities pledged by it pursuant to this Agreement; 
 
(iii)    all the shares of the Stock have been duly and validly issued, are fully paid and
non-assessable and are subject to no options to purchase or similar rights; and 
 
(iv)    to its knowledge, each of the Pledged Notes constitutes, or when executed by the obligor thereof will constitute, the legal, valid and binding obligation of such obligor,
enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing. 
 

7 

 
(b)    The Company covenants and agrees that it will take all commercially reasonable steps to defend the Lender’s right, title and security interest in and to the Securities and the proceeds thereof against
the claims and demands of all persons whomsoever (other than the Lender or any Affiliate of the Lender), except to the extent that the Board of Directors of the Company determines that the value of such Security is immaterial in light of the costs
of defense or such action is not otherwise in the best interests of the Company; and the Company covenants and agrees that it will have like title to and right to pledge any other property at any time hereafter pledged to the Lender as Collateral
hereunder and will likewise take all reasonable steps to defend the right thereto and security interest therein of the Lender and the other Lender, except to the extent that the Board of Directors of the Company determines that the value of such
Security is immaterial in light of the costs of defense or such action is not otherwise in the best interests of the Company. 
 
(c)    The Company covenants and agrees that it will take no action in connection with this Agreement which would
violate or be inconsistent with any of the terms of any Transaction Document, or which would have the effect of impairing the position or interests of the Lender or any other Lender under any Transaction Document except as permitted by the Purchase
Agreement or any other Transaction Document. 
 
15.    COMPANY’S OBLIGATIONS ABSOLUTE, ETC.    The obligations of the Company under this Agreement shall be absolute and unconditional and shall remain in full force and effect
without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever, including, without limitation: 
 
(i)    any renewal, extension, amendment or modification of, or addition
or supplement to or deletion from any of the Transaction Documents, or any other instrument or agreement referred to therein, or any assignment or transfer of any thereof; 
 
(ii)    any waiver, consent, extension, indulgence or other action or
inaction under or in respect of any such agreement or instrument or this Agreement; 
 
(iii)    any furnishing of any additional security to the Lender or its assignee or any acceptance
thereof or any release of any security by the Lender or its assignee; 
 
(iv)    any limitation on any party’s liability or obligations under any such instrument or agreement or any invalidity or unenforceability, in whole or in part, of any such
instrument or agreement or any term thereof; or 
 
(v)    except to the extent required by mandatory controlling provisions of law, any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to
the Company or any Subsidiary of the Company, or any action taken with respect to this Agreement by any trustee or receiver, or by any court, in any such proceeding, whether or not the Company shall have notice or knowledge of any of the foregoing.

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

8 

 
17.    WAIVER; AMENDMENT.    None of the terms and conditions of this Agreement may be amended, changed, waived, modified or varied in any manner whatsoever unless in writing duly signed
by the Lender. 
 
18.    MISCELLANEOUS.    This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect, subject to release and/or termination
by the Lender, (ii) be binding upon the Company, its successors and assigns, and (iii) inure, together with the rights and remedies of the Lender hereunder, to the benefit of the Lender, and its respective successors, transferees and assigns. This
Agreement shall be construed in accordance with and governed by the law of the State of California. The headings of the several sections and subsections in this Agreement are for purposes of reference only and shall not limit or define the meaning
hereof. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. In the event that any provision of this Agreement shall prove to be invalid or
unenforceable, such provision shall be deemed to be severable from the other provisions of this Agreement which shall remain binding on all parties hereto. 
 
19.    WAIVER OF JURY TRIAL.    The Company hereby irrevocably waives all right to a trial
by jury in any action, proceeding or counterclaim arising out of or relating to this Agreement or the transactions contemplated hereby. 
 
20.    RECOURSE.    This Agreement is made with full recourse to the Company and pursuant
to and upon all the representations, warranties, covenants and agreements on the part of the Company contained herein and in the other Transaction Documents and otherwise in writing in connection herewith or therewith. 
 

9 

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

	 SAGENT TECHNOLOGY, INC., as the Company

	
	 By:
	 	 /s/    ANDRES BOISVERT

	 	 	 Name:  Andres Boisvert
 Title:  Chief Executive Officer

 

	 GROUP I SOFTWARE, INC., as the Lender

	
	 By:
	 	 /s/    MARK FUNSTON

	 	 	 Name:  Mark Funston
 Title:  Chief Financial Officer

 
 
[Signature Page to Pledge Agreement] 
 
 
 

 
ANNEX A

Pledge Agreement 
 
LIST OF SUBSIDIARIES 
 
Domestic Subsidiaries 
 
Qualitative Marketing Software, Inc., a Delaware corporation 
 
Material Foreign Subsidiaries 
 
Sagent Technology Japan KK 
 
Sagent France, S.A. 
 
Sagent Technology GmbH 
 
Sagent UK Ltd. 
 
Foreign Subsidiaries 
 
Sagent (Asia Pacific) Pte. Ltd. 
 
Sagent Technology Australia 
 
Sagent Benelux Region 
 
Sagent Technology (Canada), Inc. 
 
Sagent de Mexico 
 
 

A-1 

 
ANNEX B

Pledge Agreement 
 
LIST OF STOCK 
 
Sagent Technology, Inc. owns 1,000 shares of Qualitative Marketing Software, Inc. common stock which constitutes a 100% ownership interest of such
company. 
 
Sagent Technology, Inc. owns 200 shares of Sagent
Technology Japan KK common stock which constitutes a 100% ownership interest of such company. 
 
Sagent Technology, Inc. owns equity securities of Sagent (Asia Pacific) Pte. Ltd. which constitute a 100% ownership interest of such company. 
 
Sagent Technology, Inc. owns equity securities of Sagent Technology Australia
which constitute a 100% ownership interest of such company. 
 
Sagent Technology, Inc. owns equity securities of Sagent Benelux Region which constitute a 100% ownership interest of such company. 
 
Sagent Technology, Inc. owns equity securities of Sagent Technology (Canada), Inc. which constitute a 100% ownership interest of such company.

 
Sagent Technology, Inc. owns equity securities of Sagent France,
S.A. which constitute a 100% ownership interest of such company. 
 
Sagent Technology, Inc. owns equity securities of Sagent Technology GmbH which constitute a 100% ownership interest of such company. 
 
Sagent Technology, Inc. owns equity securities of Sagent de Mexico which constitute a 100% ownership interest of such company. 
 
Sagent Technology, Inc. owns equity securities of Sagent UK Ltd. which
constitute a 100% ownership interest of such company. 
 
Sagent
Technology, Inc. owns equity securities of Responsys, Inc. which constitute a 0.1699% ownership interest of such company. 
 

B-1 

 
ANNEX C

Pledge Agreement 
 
LIST OF NOTES 
 
Intercompany Revolving Credit Note by and between the Company and Sagent Technology Japan KK dated November 4, 2002. 
 

C-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}]]