Document:

<PAGE>

                                                                   Exhibit 10.19

(MERRILL LYNCH LOGO)

                AMENDMENT TO LOAN DOCUMENTS AND CONSENT AGREEMENT

      Amendment to Loan Documents and Consent Agreement (the "Amendment"),
dated as of September 19, 2005 among MERRILL LYNCH BUSINESS FINANCIAL
SERVICES INC. ("MLBFS"), COLLEGIATE PACIFIC INC. (the "Customer"), KESSLER
TEAM SPORTS INC. ("Kessler"), TOMARK SPORTS INC. ("Tomark"), DIXIE SPORTING
GOODS CO., INC. ("Dixie"), CMS OF CENTRAL FLORIDA, INC. ("CMS"), and SALKELD
& SONS, INC. (`Salkeld", and together with Kessler, Tomark, Dixie and CMS,
the "Guarantors"; and individually, a "Guarantor").  Customer and the
Guarantors are collectively referred to herein as the "Credit Parties"; and
individually as a "Credit Party".

                                    RECITALS

      Customer and MLBFS are parties to a WCMA Loan and Security Agreement No.
586-07067 dated December 16, 2003, as amended and/or extended from time to time
(as so amended and/or extended, the "Loan Agreement"). Customer has requested
that the maximum amount of the WCMA Line of Credit established by and maintained
under the Loan Agreement be increased, that the term of the Loan Agreement be
extended, and that certain other changes be made to the Loan Documents, and
MLBFS has agreed to such increase, extension and changes, all upon the terms and
subject to the conditions set forth herein. Customer has also requested that
MLBFS consent to the proposed activity and/or transactions set forth herein in
Section 3 of this Amendment under the caption "Limited Consent", and MLBFS has
agreed to do so, all upon the terms and subject to the conditions set forth
herein.

      Accordingly, in consideration of the mutual covenants and agreements
contained in this Amendment and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Credit Parties and
MLBFS hereby agree as follows:

      1. Defined Terms. Capitalized terms used but not defined in this Amendment
(including, without limitation, in the recital clauses of this Amendment) shall
have the respective meanings assigned to those terms in the Loan Agreement.

      2. Amendments to Loan Agreement. As of the Amendment Effective Date (as
defined below), the Loan Agreement is hereby amended as follows:

            (a) The first sentence of the definition of "Interest Rate" in
Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety
to read as follows: "'Interest Rate' shall mean a variable per annum rate of
interest equal to the sum of 1.75% plus the One-Month LIBOR."

            (b) Clause (B) of the definition of "Maximum WCMA Line of Credit" in
Section 1.1 of the Loan Agreement is hereby amended by deleting the amount
"$12,000,000" therein and by inserting the amount "$20,000,000" in its place.

            (c) The definition of "Initial Maturity Date" in Section 1.1 of the
Loan Agreement is hereby amended and restated in its entirety to read as
follows: "'Initial Maturity Date' shall mean the first date upon
<PAGE>
which the WCMA Line of Credit will expire (subject to renewal in accordance with
the terms hereof): to wit: September 30, 2006."

            (d) The form of Borrowing Base Certificate attached to the Loan
Agreement as Exhibit B-1 is hereby replaced by the form of Borrowing Base
Certificate attached to this Amendment.

            (e) Section 2.2(b) is hereby amended by adding the following at the
end thereof:

            "Upon not less than 15 days advance written notice to Customer,
            MLBFS shall have the right any time and from time to time in the
            exercise of its good faith credit judgment to decrease the
            percentages set forth in clause (A) of the definition of the term
            "Maximum WCMA Line of Credit" and/or establish reserves against the
            amount of WCMA Loans and other extensions of credit that Customer
            may otherwise request under this Loan Agreement, in each case, in
            such amounts, and with respect to such matters, as MLBFS shall so
            deem reasonably necessary or appropriate."

            (f) A new Section 2.2(m) is hereby added to the Loan Agreement as
follows:

            "(m) UNUSED LINE FEE. Customer shall pay to MLBFS an unused line fee
            on the average daily unused portion of the $20,000,000 maximum
            amount of the line of credit established hereby, from the date
            hereof to and including the Maturity Date, at the rate of .375% per
            annum (calculated on the basis of a 360-day year for the actual
            number of days elapsed), payable quarterly in arrears on the last
            day of each March, June, September and December for the three-month
            period ending on such date, and on the Maturity Date for the period
            from the end of the immediately preceding three-month period to and
            including the Maturity Date."

            (g) Section 3.2(a)(ii) of the Loan Agreement is hereby amended and
restated in its entirety to read as follows:

            "(i) Within 30 days after the close of each fiscal month of
            Customer, a copy of the Accounts Receivable Aging of Customer and
            each Business Guarantor (collectively, the "Monthly Accounts
            Receivable Agings") as of the end of such fiscal month; provided,
            that if at the end of any such fiscal month, the aggregate Senior
            Debt to EBITDA of Customer, Business Guarantors and Sport Supply
            Group, Inc. ("SSG") is not greater than 1.25 to 1.00, then in lieu
            of the foregoing Monthly Accounts Receivable Agings, Customer shall
            furnish or cause to be furnished a summary accounts receivable aging
            and report of Customer and each Business Guarantor, in form and
            substance satisfactory to MLBFS (the "Summary AR Report"), as of the
            end of such fiscal month and, thereafter and as long as the
            aggregate Senior Debt to EBITDA of Customer, Business Guarantors and
            SSG is not greater than 1.25 to 1.00, Customer shall furnish or
            cause to be furnished a Summary AR Report, on a quarterly basis,
            within 30 days of each March 31, June 30, September 30 and December
            31; provided, further, that if at any time thereafter, and during
            the period that, the aggregate Senior Debt to EBITDA of Customer,
            Business Guarantors and SSG shall again be greater than 1.25 to
            1.00, then commencing with the fiscal month during which such Senior
            Debt to EBITDA shall again be greater than 1.25 to 1.00, Customer
            shall furnish or cause to be furnished the Monthly Accounts
            Receivable Agings at the times and otherwise as required above in
            this Section 3.2(a)(ii). "

                                       2
<PAGE>
            (h) Section 3.2(a)(iii) of the Loan Agreement is hereby amended and
restated in its entirety to read as follows:

            "(iii) Within 30 days after the close of each fiscal month of
            Customer, a copy of the Inventory Report (as and to the extent
            applicable, breaking out inventory by location, and separately
            reporting any work in process) of Customer and each Business
            Guarantor (collectively, the "Monthly Inventory Reports) as of the
            end of such fiscal month; provided, that if at the end of any such
            fiscal month, the aggregate Senior Debt to EBITDA of Customer,
            Business Guarantors and SSG is not greater than 1.25 to 1.00, then
            in lieu of the foregoing Monthly Inventory Reports, Customer shall
            furnish or cause to be furnished a summary inventory report of
            Customer and each Business Guarantor, in form and substance
            satisfactory to MLBFS (the "Summary Inventory Report"), as of the
            end of such fiscal month and, thereafter and as long as the
            aggregate Senior Debt to EBITDA of Customer, Business Guarantors and
            SSG is not greater than 1.25 to 1.00, Customer shall furnish or
            cause to be furnished a Summary Inventory Report, on a quarterly
            basis, within 30 days of each March 31, June 30, September 30 and
            December 31; provided, further, that if at any time thereafter, and
            during the period that, the aggregate Senior Debt to EBITDA of
            Customer, Business Guarantors and SSG shall again be greater than
            1.25 to 1.00, then commencing with the fiscal month during which
            such Senior Debt to EBITDA shall again be greater than 1.25 to 1.00,
            Customer shall furnish or cause to be furnished the Monthly
            Inventory Reports at the times and otherwise as required above in
            this Section 3.2(a)(iii)."

            (i) Section 3.2(a)(vii) of the Loan Agreement is hereby amended and
restated in its entirety to read as follows:

            "(vii) Within 30 days after the close of each fiscal month of
            Customer, a Borrowing Base Certificate, duly executed by an
            authorized officer of Customer, in the form of Exhibit B-1 attached
            hereto; provided, that if at the end of any such fiscal month, the
            aggregate Senior Debt to EBITDA of Customer, Business Guarantors and
            SSG is not greater than 1.25 to 1.00, then no Borrowing Base
            Certificate shall be required for such fiscal month, or for any
            fiscal month thereafter as long as the aggregate Senior Debt to
            EBITDA of Customer, Business Guarantors and SSG is not greater than
            1.25 to 1.00; provided, further, that if at any time thereafter, and
            during the period that, the aggregate Senior Debt to EBITDA of
            Customer, Business Guarantors and SSG shall again be greater than
            1.25 to 1.00, then commencing with the fiscal month during which
            such Senior Debt to EBITDA shall be greater than 1.25 to 1.00,
            Customer shall furnish or cause to be furnished a Borrowing Base
            Certificate at the times and otherwise as required above in this
            Section 3.2(a)(vii)."

            (j) Section 3.3(h) of the Loan Agreement is hereby amended and
restated in its entirety to read as follows:

            "FIXED CHARGE COVERAGE. As at June 30, 2005 and at all times
            thereafter, the aggregate "Fixed Charge Coverage Ratio" of Customer,
            Business Guarantors and SSG shall at all times exceed 1.20 to 1.00.
            For purposes hereof, "Fixed Charge Coverage Ratio" shall mean the
            ratio of: (a) income before interest (including payments in the
            nature of interest under capital leases), taxes, depreciation,

                                       3
<PAGE>
            amortization, and other non-cash charges, minus any internally
            financed capital expenditures, to (b) the sum of (i) dividends and
            other distributions paid or payable to shareholders, any taxes paid
            in cash, and interest expense, as determined on a trialing 12-month
            basis, plus (ii) the aggregate principal scheduled to be paid or
            accrued over the next 12 month period, all as set forth in
            Customer's, Business Guarantors' and SSG's regular quarterly and
            annual financial statements prepared in accordance with GAAP."

            (k) Section 3.3(m) of the Loan Agreement is hereby amended and
restated in its entirety to read as follows:

            "SENIOR DEBT TO EBITDA. The aggregate "Senior Debt to EBITDA" of
            Customer, Business Guarantors and SSG shall not any any time exceed
            2.00 to 1.00. For purposes hereof, "Senior Debt to EBITDA" shall
            mean the ratio of (a) debt to MLBFS to (b) income before interest
            (including payments in the nature of interest under capital leases),
            taxes, depreciation, amortization, and other non-cash charges, all
            as set forth in Customer's, Business Guarantors' and SSG's regular
            quarterly and annual financial statements prepared in accordance
            with GAAP."

            (l) Section 3.3(k) of the Loan Agreement is hereby amended by
deleting the amount "$500,000.00" set forth therein and by inserting the amount
"$2,000,000.00" in its place.

            (m) A new Section 3.3(n) is hereby added to the Loan Agreement as
follows:

            "NO PREPAYMENT OF SUBORDINATED DEBT. None of Customer or any
            Business Guarantor shall, directly or indirectly, prepay, retire,
            redeem, repurchase, defease, purchase or otherwise acquire, or set
            aside any monies or funds for a sinking, defeasance, or other
            analogous or similar fund for the prepayment, retirement,
            redemption, repurchase, defeasance, purchase or acquisition of, any
            debt of Customer or any Business Guarantor that is or may in the
            future be, in any way, and in whole or in part, subordinated in
            right or payment or performance to the Obligations (including,
            without limitation, the 5.75% Convertible Senior Subordinated Notes
            of Customer)."

      3. Limited Consent.

            (a) From and after the Consent Effective Date, but subject to the
conditions set forth in Section 5 below, MLBFS hereby:

            (i) consents to the merger of Sport Supply Group, Inc. ("SSG") with
            and into Customer, or, if the Reverse Merger Election (as defined
            below) shall have been elected, the merger of CP Merger Sub, Inc.
            (the "Merger Sub"), a Delaware corporation and a wholly-owned
            subsidiary of Customer, with and into SSG, pursuant to which the
            Company shall acquire all of the outstanding shares of SSG that it
            shall not own on the closing date of the Merger, for the merger
            consideration and otherwise upon the terms and conditions set forth
            in the Agreement and Plan of Merger dated as of September 7, 2005 by
            and among Customer, the Merger Sub and SSG (the Agreement and Plan
            of Merger, together with all schedules and exhibits thereto, in each
            case as in effect on the date of this Amendment (without regard to
            any

                                       4
<PAGE>
            amendments, modifications, waivers or supplements thereto),
            collectively, the "Merger Agreement"); and

            (ii) agrees that the actions contemplated by Section 3(a) above
            shall not constitute an Event of Default under the Loan Documents.

      (b) The Credit Parties acknowledge and agree that the consent contained in
Section 3(a) shall not be deemed to be or constitute a consent to any future
action or inaction on the part of Customer or any other Credit Party that might
result in a Default or Event of Default, and shall not constitute a waiver of
any covenant, term or provision in the Loan Agreement or the other Loan
Documents, or hinder, restrict or otherwise modify the rights and remedies of
MLBFS following the occurrence of any present or future Default or Event of
Default under the Loan Agreement or any other Loan Document.

      (c) The term "Reverse Merger Election" shall have the meaning assigned to
that term in Section 2.2 of the Merger Agreement.

      4. Effective Date of Amendment and Consent.

      (a) This Amendment (other than the provisions of Section 3 above) shall
become effective (the "Amendment Effective Date") when, and only when, (i) an
officer of MLBFS shall have reviewed and approved this Amendment as being
consistent with its internal authorization hereof, and (ii) each of the
following conditions precedent have been fulfilled to the satisfaction of MLBFS
in its sole discretion: (A) Customer and MLBFS shall have delivered to each
other a fully executed counterpart of this Amendment, (B) all legal and other
matters incident to the execution, delivery and performance of this Amendment
and the documents and instruments contemplated hereby, and the transactions
contemplated hereby, shall be satisfactory in form and substance to MLBFS, and
(C) Customer shall have paid to MLBFS a non-refundable, upfront consent and
extension fee in the amount of $50,000, which shall be considered to be earned
in full on the date of this Amendment.

      (b) The provisions of Section 3 shall be effective as of the date of this
Amendment (the "Consent Effective Date"), and shall remain effective unless the
closing of the Merger shall not occur on or before January 31, 2006 (in which
event such provisions shall become null and void), subject to the following, in
each case in form and substance satisfactory to MLBFS:

            (i) the conditions set forth in Section 4(a) shall have been
            fulfilled; and

            (ii) the Credit Parties will promptly deliver to MLBFS and its
            counsel a copy of any and all other documents, certificates,
            agreements, certificates, consents and confirmations in connection
            with the Merger Agreement, or relating thereto, executed and/or
            delivered by any of the Credit Parties, including without
            limitation, all amendments, modifications, supplements and/or
            waivers to the Merger Agreement, and, at the request of MLBFS, all
            other documents, certificates, agreements, certificates, consents
            and confirmations in connection with the Merger Agreement, or
            relating thereto, all of which shall be subject to review and
            approval by MLBFS; and

      (c) The Credit Parties acknowledge and agree that failure to comply with
any of the conditions set forth in Section 4 within the respective periods set
forth above shall constitute an immediate Event of Default under the Loan
Documents, without the necessity of notice or any other event of any kind or
nature, and the effectiveness of the consent contained in Section 3 shall be
void and of no further force or effect.

                                       5
<PAGE>
      5. Representations and Warranties. In order to induce MLBFS to enter into
this Amendment, Customer and the other Credit Parties each hereby represents and
warrants to MLBFS that (a) the recital clauses set forth in this Amendment are
true, complete and correct in all respects and (b) after giving effect to the
amendments set forth in Section 2 and the consent set forth in Section 3, all
representations and warranties contained in the Loan Agreements and the other
Loan Documents are true and correct in all respects on the date hereof and are
hereby considered to be remade as of the date hereof, (c) the execution and
delivery by Customer and the other Credit Parties of this Amendment does not and
will not, by the passage of time, the giving of notice or otherwise: (i) require
the approval of any governmental authority or any other Person (other than those
approvals which have been obtained and remain effective), or violate any
applicable law relating to such Credit Party or (ii) conflict with, result in a
breach of or constitute a default under the organizational documents of any
Credit Party, or any indenture, agreement or other instrument to which such
Credit Party is a party or by which it or any of its properties may be bound,
(d) as of the date hereof and as of the Amendment Effective Date, no Default or
Event of Default has occurred and is continuing, nor will any exist immediately
after giving effect to this Amendment or after the consummation of the Merger
and the transactions contemplated thereby, and (e) the execution, delivery and
performance by the Credit Parties of this Consent Agreement have been duly
authorized by all necessary corporate and other action.

      6. Ratification and Enforceability of Loan Documents. By executing this
Amendment, each of the Credit Parties hereby (a) ratifies, confirms and approves
the Loan Agreement and each of the other Loan Documents, each of which shall
remain in full force and effect in accordance with their respective terms, and
(b) represents and warrants that the Loan Agreement and Loan Document each
constitutes the valid and legally binding obligation of the Credit Parties, as
the case may be, enforceable in accordance with its terms. In addition, and
without limiting the generality of the foregoing, by executing this Amendment
the Guarantors each expressly consent to the amendment and extension of the Loan
Agreement and acknowledge and agree that the term "Obligations" under its
unconditional guaranty and security agreement and any other Loan Document in
favor of or with MLBFS shall extend to and include the Obligations of Customer
under the Loan Agreement and the Loan Documents, as amended and extended hereby.

      7. Certain Acknowledgments and Agreements by Customer.

      (a) The Credit Parties agree that, no later than the close of business on
October 18, 2005, they will comply with Sections 2(d) and (e) of the Consent
Agreement dated as of August 1, 2005 by and among Customer, Kessler, Tomark,
Dixie and CMS.

      (b) To induce MLBFS to agree to the terms of this Amendment, the Credit
Parties each represents and warrants that as of the date of its execution of
this Amendment, there are no claims or offsets against, or rights of recoupment
with respect to, or defenses or counterclaims to its obligations (including,
without limitation, "Obligations") under, the Loan Documents and, in accordance
therewith, the Credit Parties each hereby waives any and all such claims,
offsets, rights of recoupment, defenses or counterclaims, whether known or
unknown, arising prior to the date of this Amendment, and releases and
discharges MLBFS and its officers, directors, employees, agents, stockholders,
affiliates and attorneys (collectively, the "Released Parties") from any and all
obligations, indebtedness, liabilities, claims, rights, causes of action or
demands whatsoever, whether known or unknown, suspected or unsuspected, in law
or equity, which the Credit Parties, or any of them, ever had or now has against
any Released Party arising prior to the date hereof and from, arising out of, or
relating to the Loan Documents.

                                       6
<PAGE>
      8. Miscellaneous.

      (a) Any provision of this Amendment held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the
remainder of this Amendment and the effect thereof shall be confined to the
provision so held to be invalid or unenforceable.

      (b) THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED PURSUANT HERETO
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
ILLINOIS WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW OR ANY OTHER LAWS THAT
WOULD MAKE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF ILLINOIS
APPLICABLE HERETO.

      (c) Except as expressly herein modified, the terms and conditions of the
Loan Agreement and the other Loan Documents shall remain in full force and
effect.

      (d) This Amendment is binding upon and shall inure to the benefit of the
Credit Parties and their respective successors and assigns, except that none of
the Credit Parties may assign or transfer this Amendment or any of their
respective rights or obligations hereunder without the prior written consent of
MLBFS.

      (e) This Amendment may be executed in two or more counterparts, each of
which when so executed shall be deemed to be an original, but all of which when
taken together shall constitute one and the same agreement. Any signature
delivered by a party by facsimile transmission shall be deemed an original
signature hereto.

      (f) The headings and captions used in this Amendment are for convenience
only and shall not affect the interpretation of this Amendment.

                        (signatures appear on next page)

                                       7
<PAGE>
      IN WITNESS WHEREOF, Customer, MLBFS and the Guarantors have signed this
Amendment as of the date first above written.

                              COLLEGIATE PACIFIC INC.

                              By: /s/ William R. Estill
                                 -----------------------------------
                              Print Name: William R. Estill
                                         ---------------------------
                              Print Title: Chief Financial Officer
                                          --------------------------

                              MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.

                              By: /s/ Brian Talty
                                 -----------------------------------
                              Print Name: Brian Talty
                                         ---------------------------
                              Print Title: VP, Senior Underwriter
                                          --------------------------

GUARANTORS:

KESSLER TEAM SPORTS INC.

By: /s/ William R. Estill
   -----------------------------------
Print Name: William R. Estill
           ---------------------------
Print Title: Chief Financial Officer
            --------------------------

TOMARK SPORTS INC.

By: /s/ William R. Estill
   -----------------------------------
Print Name: William R. Estill
           ---------------------------
Print Title: Chief Financial Officer
            --------------------------

DIXIE SPORTING GOODS CO., INC.

By: /s/ William R. Estill
   -----------------------------------
Print Name: William R. Estill
           ---------------------------
Print Title: Chief Financial Officer
            --------------------------

CMS OF CENTRAL FLORIDA, INC.

By: /s/ William R. Estill
   -----------------------------------
Print Name: William R. Estill
           ---------------------------
Print Title: Chief Financial Officer
            --------------------------

                                       8
<PAGE>
SALKELD & SONS, INC.

By: /s/ William R. Estill
    ----------------------------------
Print Name: William R. Estill
            --------------------------
Print Title: Chief Financial Officer
             -------------------------

                                       9
<PAGE>
                       FORM OF BORROWING BASE CERTIFICATE

                                       10
<PAGE>
                          EXHIBIT B-1 TO LOAN AGREEMENT

(MERRILL LYNCH LOGO)                                  BORROWING BASE CERTIFICATE

To:   Merrill Lynch Business Financial Services Inc. ("MLBFS")
      222 North LaSalle Street
      17th Floor
      Chicago, IL 60601

The undersigned, on behalf of COLLEGIATE PACIFIC INC. ("Customer"), hereby
certifies to MLBFS that: (i) he/she is an officer authorized to execute and
deliver this Certificate on behalf of Customer, and is familiar with the
business and financial condition of Customer; (ii) the financial statements
delivered with this Certificate fairly present in all material respects the
results of operations and the financial condition of Customer and, if
applicable, Business Guarantors; and (iii) to the best of my knowledge and
belief, after reasonable investigation, each of the following statements is true
and correct as of the date hereof: (a) no Event of Default or event which with
the giving of notice, the passage of time, or both, would constitute an Event of
Default, has occurred or is continuing, (b) no material adverse change in the
financial condition of Customer or any Business Guarantor has occurred or is
continuing, and (c) the attached annexations, which are hereby incorporated
herein by reference, are accurate, true and correct, and do not fail to state
any material fact known (or should have been known) to Customer or Business
Guarantors which would, but for the lapse of time, make any such statement or
calculation false in any respect.

Capitalized terms used in this Borrowing Base Certificate shall have the
meanings assigned to them in the WCMA Loan and Security Agreement, dated
December 16, 2003, between Customer and MLBFS, as amended, modified,
supplemented, renewed or restated to date (the "Loan Agreement").

Date: _______________________

COLLEGIATE PACIFIC INC.

By: __________________________________________
    Signature

    __________________________________________
    Printed Name

    __________________________________________
    Title

================================================================================
INSTRUCTIONS: In accordance with the terms of the Loan Agreement (to which this
original form of Borrowing Base Certificate is attached as Exhibit B-1), this
Borrowing Certificate and the attached Annexations must be completed by you
within 30 DAYS after the close of each fiscal month. MLBFS expects you to make
copies of this original form of Borrowing Base Certificate and send them to
MLBFS without notification or reminder. Additional copies will be provided to
you upon request.
================================================================================
<PAGE>
                       BORROWING BASE CALCULATION ANNEX TO
                           BORROWING BASE CERTIFICATE

As set forth in the Loan Agreement, the "Maximum WCMA Line of Credit" shall
mean, as of any date of determination thereof, an amount equal to the lesser of:
(A) 80% of Customer's and Business Guarantors' aggregate Accounts and Chattel
Paper, as shown on its regular books and records (excluding Accounts over 90
days old, Chattel Paper with installments or other sums more than 90 days past
due, and Accounts directly or indirectly due from any person or entity not
domiciled in the continental United States, Alaska or Hawaii, or from any
shareholder, officer or employee of Customer or Business Guarantors or any
affiliated entity or Accounts arising out of bonded jobs or retainage), plus 50%
of Customer's and Business Guarantors' aggregate inventory, as shown on its
regular books and records (excluding all work-in-process inventory) or (B)
$20,000,000.00.

As of ___________, 20_____ (insert month-end date):

ACCOUNTS RECEIVABLE

      1.    Gross Accounts Receivable                       $___________
      2.    Less Ineligibles:
                 Past Due Over 60 days                      $(__________)
                 Cross-age 50%                              $(__________)
                 Affiliates                                 $(__________)
                 Sample Accounts Receivable                 $(__________)
                 Chargebacks                                $(__________)
                 Over 60 days Credits                       $(__________)
                 Government                                 $(__________)
      3.    Total Ineligible Accounts Receivable            $___________
      4.    Eligible Accounts Receivable                    $___________
      5.    Advance Rate on Accounts Receivable             80%
      6.    A/R AVAILABILITY                                $___________

INVENTORY

      1.    Inventory                                       $___________
      2.    Less Ineligibles:
               Work-in-Process                              $(__________)
               Slow Moving                                  $(__________)
               Packing/Supplies                             $(__________)
               Direct Ship Inventory                        $(__________)
               Inventory in SCR LOC                         $(__________)
      3.    Total Ineligible Inventory                      $___________
      4.    Eligible Inventory                              $___________
      5.    Advance Rate                                    50%
      6.    INVENTORY AVAILABILITY                          $___________

GROSS AVAILABILITY                                          $___________
LOAN BALANCE                                                $___________
EXCESS AVAILABILITY                                         $ __________exv10w1

 

EXHIBIT 10.1

Siebel Systems, Inc.

Senior Executive Retention Benefit Plan

Effective as of August 28, 2005

Section 1. Introduction.

     The Siebel Systems, Inc. Senior Executive Retention Benefit Plan (the “Plan”) was established
effective May 20, 2005 and amended effective August 28, 2005. The purpose of the Plan is to provide
severance benefits to certain Eligible Employees of the Company (as defined below) whose employment
with the Company is terminated under specified circumstances in connection with a Change of Control
(as defined below). Except for contracts and agreements described in Section 3(b)(1) and plans
described in Section 3(b)(2), the Plan shall supersede any change of control-based severance
benefit plan, policy, agreement or practice previously maintained by the Company for each employee
participating in the Plan. This Plan document also constitutes the Summary Plan Description for the
Plan.

Section 2. Definitions.

     For purposes of the Plan, the following terms are defined as follows:

     (a) “Board” means the Board of Directors of the Company.

     (b) “Cause” means:

     (i) a material act of dishonesty by the Eligible Employee in connection with his or her
employment with the Company;

     (ii) the Eligible Employee’s conviction of, or plea of nolo contendere to, a felony;

     (iii) the Eligible Employee’s gross misconduct in connection with the performance of his or
her duties;

     (iv) the Eligible Employee’s death or permanent disability preventing him or her from
performing the usual and necessary functions of his or her position;

     (v) the Eligible Employee’s material breach of his or her obligations as an employee of the
Company; or

     (vi) the Eligible Employee’s failure to materially comply with the Company’s policies;

     provided that with respect to clauses (iii), (v) and (vi), if the Company deems such actions
capable of being cured, such actions shall not constitute grounds for Involuntary Termination
without Cause if they are cured by the Eligible Employee within thirty (30) days following delivery
to him or her of a written explanation specifying the basis for the Company’s belief that it has
Cause.

1

 

     (c) “Change of Control” means the occurrence in a single transaction or in a series of
related transactions of any one or more of the following events:

     (1) a merger, consolidation or reorganization in which Siebel Systems, Inc. does not
survive as an independent public company or in which Siebel Systems, Inc.’s stockholders
immediately prior to such transaction hold less than fifty percent (50%) of the total
combined voting power of the outstanding voting securities of the surviving corporation
immediately following the transaction;

     (2) the sale, transfer or other disposition of all or substantially all of Siebel
Systems, Inc.’s assets or securities;

     (3)
a reverse merger in which Siebel Systems, Inc. is the surviving corporation but the shares of Siebel Systems, Inc.’s common stock outstanding immediately preceding the merger
are converted by virtue of the merger into other property, whether in the form of
securities, cash or otherwise;

     (4) any transaction or series of related transactions pursuant to which any person or
any group of persons comprising a “group” within the meaning of Rule 13d-5(b)(1) under the
Securities Exchange Act of 1934, as amended (other than Siebel Systems, Inc. or a person
that, prior to such transaction or series of related transactions, directly or indirectly
controls, is controlled by or is under common control with, Siebel Systems, Inc.) becomes
directly or indirectly the beneficial owner (within the meaning of Rule 13d-3 of the
Securities Exchange Act of 1934, as amended) of securities possessing (or convertible into
or exercisable for securities possessing) more than fifty percent (50%) of the total
combined voting power of Siebel Systems, Inc.’s securities outstanding immediately after the
consummation of such transaction or series of related transactions, whether such transaction
involves a direct issuance from Siebel Systems, Inc. or the acquisition of outstanding
securities held by one or more of Siebel Systems, Inc.’s stockholders; or

     (5) a change in the composition of the Board occurring within a two-year period, as a
result of which less than a majority of the directors are Incumbent Directors. “Incumbent
Directors” shall mean directors who are either (i) directors of Siebel Systems, Inc. as of
the date the Plan was adopted, or (ii) elected to the Board, or nominated for election to
the Board by the Nominating and Corporate Governance Committee of the Board or the full
Board, and endorsed by the directors of Siebel Systems, Inc. (but shall not include an
individual whose election or nomination is in connection with an actual or threatened proxy
contest relating to the election of directors to Siebel Systems, Inc.).

Once a Change of Control has occurred, no future events will constitute a Change of Control
for purposes of the Plan.

     (d) “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

     (e) “Code” means the Internal Revenue Code of 1986, as amended.

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     (f) “Company” means Siebel Systems, Inc., an affiliate of Siebel Systems, Inc. or, following a
Change of Control, the surviving entity resulting from such transaction or the parent company of
such surviving entity.

     (g) “Covered Termination” means an Involuntary Termination without Cause or a Voluntary
Resignation for Good Reason, either of which occurs within twelve (12) months following the
effective date of a Change of Control; provided, however, that an employee who is offered a
position with the Company in connection with or following the Change of Control shall not be
considered to have suffered a “Covered Termination” unless such offered position is the basis for a
Voluntary Resignation for Good Reason.

     (h) “Eligible Employee” means a Senior Executive of the Company who has been designated by the
Plan Administrator as an Eligible Employee and who is a full-time or a part-time regular hire
employee of the Company. The determination of whether an employee is an Eligible Employee shall be
made by the Plan Administrator, in its sole discretion, and such determination shall be binding and
conclusive on all persons. For purposes of this Plan, part-time employees are those regular hire
employees who are regularly scheduled to work more than twenty (20) hours per week but less than a
full-time work schedule. The following are not Eligible Employees under the Plan: (i) employees
regularly scheduled to work twenty (20) hours per week or less, (ii) employees who are temporary
employees, (iii) employees who, at the effective time of the Change of Control, are on a leave of
absence that is not protected by applicable law, and (iv) individuals classified by the Company as
independent contractors.

     (i) “Involuntary Termination without Cause” means an involuntary termination by the Company of
an Eligible Employee’s employment relationship with the Company for any reason other than Cause.

     (j) “On-Target Earnings” means the sum of an Eligible Employee’s annual base salary and
maximum target cash bonuses and/or commissions.

     (k) “Plan Administrator” means the person or entity specified as such in Section 13(d).

     (l) “Senior Executive” means (i) a non-administrative employee of the Company who reports
directly to the Company’s Chief Executive Officer or Board and is designated as such by the Plan
Administrator, and (ii) any other employee of the Company designated as such by the Plan
Administrator.

     (m) “Stock Awards” means stock options, stock bonus awards, restricted stock purchase awards,
restricted stock unit awards, or any other equity-based compensation granted under the Company’s
1996 Equity Incentive Plan or 1998 Equity Incentive Plan.

     (n) “Voluntary Resignation for Good Reason” means the voluntary resignation from employment by
an Eligible Employee following the occurrence, on or after a Change of Control, of one or more of
the following (without cure within thirty (30) days following written notice by the Eligible
Employee to the Company):

     (1) a reduction of at least ten percent (10%) in the Eligible Employee’s On-Target
Earnings;

3

 

     (2) the failure to provide the Eligible Employee with benefits that, in the aggregate,
are substantially comparable in value to those to which similarly-situated employees of the
surviving entity following the Change of Control are entitled; 

     (3) a change in an Eligible Employee’s principal work location to a location more than
fifty (50) miles from such Eligible Employee’s principal work location immediately prior to
such Change of Control, without such Eligible Employee’s written consent; or

     (4) any material reduction in the Eligible Employee’s duties or responsibilities (other
than a reduction solely by reason of the Eligible Employee’s duties or responsibilities
being performed in the context of a business enterprise that is substantially larger than
the Company and its affiliates prior to the Change of Control).

Section 3. Eligibility for Benefits.

     (a) Eligibility. Subject to the exceptions set forth in Section 3(b), the Company shall
provide the severance benefits described in Section 4 to Eligible Employees whose employment is
terminated pursuant to a Covered Termination, provided that the following conditions are satisfied:

     (1) The Eligible Employee remains with the Company until his or her date of termination
as scheduled by the Company, or the date of his or her Covered Termination, whichever is
earlier.

     (2) The Eligible Employee executes a release (in substantially the form attached hereto
as Exhibit A, B or C, as applicable, for Eligible Employee based in the U.S. and such other
form(s) for non-U.S. Eligible Employee as the Plan Administrator determines in its
discretion is appropriate under applicable local laws, rules and regulations), and such
release must become effective in accordance with its terms. The Plan Administrator, in its
discretion, may modify the form of the required release to comply with applicable law and
shall determine the form of the required release, which may be incorporated into a
termination agreement or other agreement with the Eligible Employee.

     (b) Exceptions to Benefit Entitlement. An employee, including an employee who otherwise is an
Eligible Employee, will not receive benefits under the Plan (or will receive reduced benefits under
the Plan) in the following circumstances, as determined by the Plan Administrator in its sole
discretion:

     (1) The employee has executed an individually negotiated employment contract or
agreement with the Company relating to severance benefits that is in effect on his or her
termination date and which provides severance benefits that the Plan Administrator in its
sole discretion determines to be of greater value than the severance benefits provided for
in the Plan, in which case such employee’s severance benefit, if any, shall be governed by
the terms of such individually negotiated employment contract or agreement.

     (2) The employee participates in another retention benefit plan maintained by the
Company (i.e., Siebel Systems, Inc. Vice President Level Retention Benefit Plan, Siebel

4

 

Systems, Inc. Director Level Retention Benefit Plan, or Siebel Systems, Inc. Employee
Retention Benefit Plan).

     (3) The employee’s employment terminates or is terminated for any reason other than a
Covered Termination.

     (4) The employee voluntarily terminates employment with the Company in order to accept
employment with another entity that is wholly or partly owned (directly or indirectly) by
the Company.

     (5) The employee is offered a position with the Company in connection with or following
a Change of Control, provided that such position is not one which would be the basis for a
Voluntary Resignation for Good Reason.

     (6) The employee is rehired by the Company prior to the date benefits under the Plan
are scheduled to commence.

Section 4. Amount of Benefits.

     (a) Cash Severance Benefits. The Company shall make cash severance payments to Eligible
Employees equivalent to the Eligible Employee’s On-Target Earnings, as in effect on the date of a
Covered Termination or, if higher, as in effect immediately prior to the Change of Control, for a
period of eighteen (18) months.

     (b) Health Continuation Coverage. Provided that the Eligible Employee is eligible for, and has
made an election at the time of the Covered Termination pursuant to COBRA or other applicable law
of coverage under, a health, dental, or vision plan sponsored by the Company, each such Eligible
Employee shall be entitled to payment by the Company of all of the applicable premiums (inclusive
of premiums for the employee’s dependents for such health, dental, or vision plan coverage as in
effect immediately prior to the date of the Covered Termination) for such health, dental, or vision
plan coverage for a period of eighteen (18) months following the date of the Covered Termination,
with such coverage counted as coverage pursuant to COBRA or other applicable law.

     (c) Acceleration of Stock Awards. Immediately upon a Covered Termination, the vesting and
exercisability of unvested Stock Awards, whether based on the passage of time or the achievement of
performance metrics, held by an Eligible Employee shall be accelerated in full and all holding
periods applicable to Stock Awards, whether based on the passage of time or the achievement of
performance metrics, held by an Eligible Employee shall be removed.

     (d) Increase in Benefits. The Plan Administrator may increase the foregoing benefits to select
Eligible Employees at its discretion, but no such increase for any Eligible Employee shall in any
way obligate the Company to provide a similar increase for any other Eligible Employee, even if
similarly situated.

5

 

Section 5. Limitations on Benefits.

     (a) Certain Reductions. The Plan Administrator, in its sole discretion, shall have the
authority to reduce an Eligible Employee’s severance benefits, in whole or in part, by any other
severance benefits, pay in lieu of notice, or other similar benefits payable to the Eligible
Employee by the Company in connection with the Eligible Employee’s termination of employment
pursuant to (i) any applicable legal requirement, including, without limitation, the Worker
Adjustment and Retraining Notification Act (the “WARN Act”), (ii) a written employment or severance
agreement with the Company, or (iii) any policy or practice of the Company providing for the
Eligible Employee to remain on the payroll for a limited period of time after being given notice of
the termination of the Eligible Employee’s employment. The benefits provided under this Plan are
intended to satisfy, in whole or in part, any and all statutory obligations that may arise out of
an Eligible Employee’s termination of employment, and the Plan Administrator shall so construe and
implement the terms of the Plan. The Plan Administrator’s decision to apply such reductions to the
severance benefits of one Eligible Employee and the amount of such reductions shall in no way
obligate the Plan Administrator to apply the same reductions in the same amounts to the severance
benefits of any other Eligible Employee, even if similarly situated. In the Plan Administrator’s
sole discretion, such reductions may be applied on a retroactive basis, with severance benefits
previously paid being re-characterized as payments pursuant to the Company’s statutory obligation.
Notwithstanding the foregoing, upon a Change of Control, the Plan Administrator shall not have the
authority to reduce an Eligible Employee’s severance benefits, in whole or in part, based upon any
payment to the Eligible Employee for any period of time when services to the Company are provided
(including, without limitation, payment following notice pursuant to the WARN Act or any similar
foreign, federal or state law).

     (b) Parachute Payments. Except as otherwise provided in an agreement between an Eligible
Employee and the Company, if any payment or benefit the Eligible Employee would receive in
connection with a Change of Control from the Company or otherwise (“Payment”) would (i) constitute
a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for this
sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then
such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the
largest portion of the Payment that would result in no portion of the Payment being subject to the
Excise Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever
amount, after taking into account all applicable federal, state and local employment taxes, income
taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the
Eligible Employee’s receipt, on an after-tax basis, of the greater amount of the Payment
notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a
reduction in payments or benefits constituting “parachute payments” is necessary so that the
Payment equals the Reduced Amount, reduction shall occur in the following order unless the Eligible
Employee elects in writing a different order (provided, however, that such election shall be
subject to Company approval if made on or after the date on which the event that triggers the
Payment occurs): (1) reduction of cash payments; (2) cancellation of accelerated vesting of Stock
Awards; and (3) reduction of employee benefits. If acceleration of vesting of compensation from an
Eligible Employee’s Stock Awards is to be reduced, such acceleration of vesting shall be cancelled
in the reverse order of the date of grant unless the Eligible Employee elects in writing a
different order for cancellation.

6

 

     The independent registered public accounting firm engaged by the Company for general audit
purposes as of the day prior to the effective date of the Change of Control shall perform the
foregoing calculations. If the independent registered public accounting firm so engaged by the
Company is serving as accountant or auditor for the individual, entity or group effecting the
Change of Control, the Company shall appoint a nationally recognized independent registered public
accounting firm to make the determinations required hereunder. The Company shall bear all expenses
with respect to the determinations by such independent registered public accounting firm required
to be made hereunder.

     The independent registered public accounting firm engaged to make the determinations hereunder
shall provide its calculations, together with detailed supporting documentation, to the Company and
the Eligible Employee within fifteen (15) calendar days after the date on which the Eligible
Employee’s right to a Payment is triggered (if requested at that time by the Company or the
Eligible Employee) or such other time as requested by the Company or the Eligible Employee. Any
good faith determinations of the independent registered public accounting firm made hereunder shall
be final, binding and conclusive upon the Company and the Eligible Employee.

Section 6. Time of Payment and Form of Benefits.

     (a) The Plan Administrator reserves the right to determine whether cash severance benefits
under the Plan, if any, shall be paid in a single lump sum or in substantially equal installments,
and to choose the timing of such payments; provided however, that lump sum cash severance benefits
shall be paid within one (1) month following a Covered Termination, and installment cash severance
payments shall commence no later than the beginning of the second month following a Covered
Termination and shall be paid in full no later than the end of the eighteenth month following a
Covered Termination. In no event shall payment of any Plan benefit be made prior to the Eligible
Employee’s termination date or prior to the effective date of the release described in Section
3(a)(2) above.

     (b) In the event that the Plan Administrator determines that any cash severance payment
provided under Section 4(a) or health continuation coverage provided under Section 4(b) fails to
satisfy the distribution requirement of Section 409A(a)(2)(A) of the Code as a result of Section
409A(a)(2)(B)(i) of the Code, the payment of such benefit shall be accelerated to the minimum
extent necessary so that the benefit is not subject to the provisions of Section 409A(a)(1) of the
Code. (The payment schedule as revised after the application of the preceding sentence shall be
referred to as the “Revised Payment Schedule.”) However, in the event the payment of benefits
pursuant to the Revised Payment Schedule would be subject to Section 409A(a)(1) of the Code, the
payment of such benefits shall not be paid pursuant to the original payment schedule or the Revised
Payment Schedule and instead the payment of such benefits shall be delayed to the minimum extent
necessary so that such benefits are not subject to the provisions of Section 409A(a)(1) of the
Code. The Plan Administrator may attach conditions to or adjust the amounts paid pursuant to this
Section 6(b) to preserve, as closely as possible, the economic consequences that would have applied
in the absence of this Section 6(b); provided, however, that no such condition or adjustment shall
result in the payments being subject to Section 409A(a)(1) of the Code.

7

 

     (c) All such payments under the Plan will be subject to applicable withholding for federal,
state and local taxes. If an Eligible Employee is indebted to the Company at his or her termination
date, the Company reserves the right to offset any severance payments under the Plan by the amount
of such indebtedness.

Section 7. Right To Interpret Plan; Amendment and Termination.

     (a) Exclusive Discretion. The Plan Administrator shall have the exclusive discretion and
authority to establish rules, forms, and procedures for the administration of the Plan, to construe
and interpret the Plan and to decide any and all questions of fact, interpretation, definition,
computation or administration arising in connection with the operation of the Plan, including, but
not limited to, the eligibility to participate in the Plan and amount of benefits paid under the
Plan. The rules, interpretations, computations and other actions of the Plan Administrator shall be
binding and conclusive on all persons.

     (b) Amendment or Termination. The Company reserves the right to amend or terminate this Plan,
including any Exhibits hereto, or the benefits provided hereunder, at any time; provided, however,
that no such amendment or termination shall affect the right to any unpaid benefit of any Eligible
Employee whose termination date has occurred prior to amendment or termination of the Plan, and no
such amendment or termination shall occur after the occurrence of a Change of Control, or following
or in connection with the approval by the Board of a Change of Control (unless such Change of
Control is reasonably expected not to occur). Any action amending or terminating the Plan shall be
in writing and executed by the Chairman of the Board, Chief Executive Officer or Chief Financial
Officer of the Company.

Section 8. No Implied Employment Contract.

     The Plan shall not be deemed (i) to give any employee or other person any right to be retained
in the employ of the Company or (ii) to interfere with the right of the Company to discharge any
employee or other person at any time, with or without cause, which right is hereby reserved.

Section 9. Legal Construction.

     This Plan is intended to be governed by and shall be construed in accordance with the Employee
Retirement Income Security Act of 1974 (“ERISA”) and, to the extent not preempted by ERISA, the
laws of the State of California.

Section 10. Claims, Inquiries and Appeals.

     (a) Applications for Benefits and Inquiries. Any application for benefits, inquiries about the
Plan or inquiries about present or future rights under the Plan must be submitted to the Plan
Administrator in writing by an applicant (or his or her authorized representative). The Plan
Administrator is set forth in Section 13(d).

     (b) Denial of Claims. In the event that any application for benefits is denied in whole or in
part, the Plan Administrator must provide the applicant with written or electronic notice of the
denial of the application, and of the applicant’s right to review the denial. Any electronic notice

8

 

will comply with the regulations of the U.S. Department of Labor. The notice of denial will be
set forth in a manner designed to be understood by the applicant and will include the following:

     (1) the specific reason or reasons for the denial;

     (2) references to the specific Plan provisions upon which the denial is based;

     (3) a description of any additional information or material that the Plan Administrator
needs to complete the review and an explanation of why such information or material is
necessary; and

     (4) an explanation of the Plan’s review procedures and the time limits applicable to
such procedures, including a statement of the applicant’s right to arbitration pursuant to
Section 11 following a denial on review of the claim.

     This notice of denial will be given to the applicant within ninety (90) days after the Plan
Administrator receives the application, unless special circumstances require an extension of time,
in which case, the Plan Administrator has up to an additional ninety (90) days for processing the
application. If an extension of time for processing is required, written notice of the extension
will be furnished to the applicant before the end of the initial ninety (90) day period.

     This notice of extension will describe the special circumstances necessitating the additional
time and the date by which the Plan Administrator is to render its decision on the application.

     (c) Request for a Review. Any person (or that person’s authorized representative) for whom an
application for benefits is denied, in whole or in part, may appeal the denial by submitting a
request for a review to the Plan Administrator within sixty (60) days after the application is
denied. A request for a review shall be in writing and shall be addressed to the Plan
Administrator, as set forth in Section 13(d).

     A request for review must set forth all of the grounds on which it is based, all facts in
support of the request and any other matters that the applicant feels are pertinent. The applicant
(or his or her representative) shall have the opportunity to submit (or the Plan Administrator may
require the applicant to submit) written comments, documents, records, and other information
relating to his or her claim. The applicant (or his or her representative) shall be provided, upon
request and free of charge, reasonable access to, and copies of, all documents, records and other
information relevant to his or her claim. The review shall take into account all comments,
documents, records and other information submitted by the applicant (or his or her representative)
relating to the claim, without regard to whether such information was submitted or considered in
the initial benefit determination.

     (d) Decision on Review. The Plan Administrator will act on each request for review within
sixty (60) days after receipt of the request, unless special circumstances require an extension of
time (not to exceed an additional sixty (60) days), for processing the request for a review. If an
extension for review is required, written notice of the extension will be furnished to the
applicant within the initial sixty (60) day period. This notice of extension will describe the
special circumstances necessitating the additional time and the date by which the Plan

9

 

Administrator is to render its decision on the review. The Plan Administrator will give
prompt, written or electronic notice of its decision to the applicant. Any electronic notice will
comply with the regulations of the U.S. Department of Labor. In the event that the Plan
Administrator confirms the denial of the application for benefits in whole or in part, the notice
will set forth, in a manner calculated to be understood by the applicant, the following:

     (1) the specific reason or reasons for the denial;

     (2) references to the specific Plan provisions upon which the denial is based;

     (3) a statement that the applicant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other information
relevant to his or her claim; and

     (4) a statement of the applicant’s right to arbitration under Section 11.

     (e) Rules and Procedures. The Plan Administrator will establish rules and procedures,
consistent with the Plan and with ERISA, as necessary and appropriate in carrying out its
responsibilities in reviewing benefit claims. The Plan Administrator may require an applicant who
wishes to submit additional information in connection with an appeal from the denial of benefits to
do so at the applicant’s own expense.

     (f) Exhaustion of Remedies. No legal action for benefits under the Plan may be brought until
the applicant (i) has submitted a written application for benefits in accordance with the
procedures described by Section 10(a) above, (ii) has been notified by the Plan Administrator that
the application is denied, (iii) has filed a written request for a review of the application in
accordance with the appeal procedure described in Section 10(c) above, and (iv) has been notified
that the Plan Administrator has denied the appeal. Notwithstanding the foregoing, if the Plan
Administrator does not respond to a Participant’s claim or appeal within the relevant time limits
specified in this Section 11, the Participant may proceed directly to arbitration pursuant to
Section 11.

Section 11. Arbitration

     (a) Any applicant’s claim remaining unresolved after exhaustion of the procedures in Section
10 (and to the extent permitted by law, any dispute concerning any breach or claimed breach of duty
regarding the Plan) shall be settled solely by binding arbitration at the Company’s principal place
of business at the time of the arbitration, in accordance with the JAMS Arbitration Rules and
Procedures. The arbitrator, in reviewing the decision of the Plan Administrator pursuant to Section
10, shall apply the standard of a reviewing court under ERISA, namely that such decision shall be
affirmed unless the arbitrator finds it to be arbitrary and capricious. Judgment on any award
rendered by the arbitrator may be entered in any court having jurisdiction thereof. Each party to
any dispute regarding the Plan shall pay the fees and costs of presenting his, her or its case in
arbitration. All other costs of arbitration, including the costs of any transcript of the
proceedings, administrative feeds, and the arbitrator’s fees shall be borne by the Company.

10

 

     (b) Except as otherwise specifically provided in this Plan, the provisions of this Section 11
shall be absolutely exclusive for any and all purposes and fully applicable to each and every
dispute regarding the Plan, including any claim which, if pursued through any state or federal
court or administrative proceeding, would arise at law, in equity or pursuant to statutory,
regulatory or common law rules, regardless of whether such claim would arise in contract, tort or
under any other legal or equitable theory or basis. The arbitrator shall have jurisdiction and
authority to award only Plan benefits and prejudgment interest; and apart from such benefits and
interest, the arbitrator shall not have any authority or jurisdiction to make any award of any kind
including, without limitation, compensatory damages, punitive damages, foreseeable or unforeseeable
economic damages, damages for pain and suffering or emotional distress, adverse tax consequences or
any other kind or form of damages. The remedy, if any, awarded by such arbitrator shall be the sole
and exclusive remedy for each and every claim which is subject to arbitration pursuant to this
Section 11. Any limitations on the relief that can be awarded by the arbitrator are in no way
intended (i) to create rights or claims that can be asserted outside arbitration or (ii) in any
other way to reduce the exclusivity of arbitration as the sole dispute resolution mechanism with
respect to this Plan.

     (c) The Plan and the Company will be the necessary parties to any action or proceeding
involving the Plan. No person employed by the Company, no Eligible Employee or any other person
having or claiming to have an interest in the Plan will be entitled to any notice or process,
unless such person is a named party to the action or proceeding. In any arbitration proceeding, all
relevant statutes of limitation apply. Any final judgment or decision that may be entered in any
such action or proceeding will be binding and conclusive on all persons having or claiming to have
any interest in the Plan.

Section 12. Basis of Payments To and From the Plan.

     The Plan shall be unfunded, and all cash payments under the Plan shall be paid only from the
general assets of the Company.

Section 13. Other Plan Information.

     (a) Employer and Plan Identification Numbers. The Employer Identification Number assigned to
the Company (which is the “Plan Sponsor” as that term is used in ERISA) by the Internal Revenue
Service is 94-3187233. The Plan Number assigned to the Plan by the Plan Sponsor pursuant to the
instructions of the Internal Revenue Service is 513.

     (b) Ending Date for Plan’s Fiscal Year. The date of the end of the fiscal year for the purpose
of maintaining the Plan’s records is December 31.

     (c) Agent for the Service of Legal Process. The agent for the service of legal process with
respect to the Plan is:

Siebel Systems, Inc.

Attn: Senior Vice President and General Counsel

2207 Bridgepointe Parkway

San Mateo, CA 94404

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     (d) Plan Sponsor and Administrator. Unless otherwise designated by the Company prior to a
Change of Control, the “Plan Sponsor” and the “Plan Administrator” of the Plan is:

Siebel Systems, Inc.

2207 Bridgepointe Parkway

San Mateo, CA 94404

     The Plan Sponsor’s and Plan Administrator’s telephone number is (650) 477-5000. The Plan
Administrator is the named fiduciary charged with the responsibility for administering the Plan.

Section 14. Statement of ERISA Rights.

     Participants in this Plan (which is a welfare benefit plan sponsored by Siebel Systems, Inc.)
are entitled to certain rights and protections under ERISA. If you are an Eligible Employee, you
are considered a participant in the Plan and, under ERISA, you are entitled to:

     (a) Receive Information About Your Plan and Benefits

     (1) Examine, without charge, at the Plan Administrator’s office and at other specified
locations, such as worksites, all documents governing the Plan and a copy of the latest
annual report (Form 5500 Series), if applicable, filed by the Plan with the U.S. Department
of Labor and available at the Public Disclosure Room of the Employee Benefits Security
Administration;

     (2) Obtain, upon written request to the Plan Administrator, copies of documents
governing the operation of the Plan and copies of the latest annual report (Form 5500
Series), if applicable, and an updated (as necessary) Summary Plan Description. The Plan
Administrator may make a reasonable charge for the copies; and

     (3) Receive a summary of the Plan’s annual financial report, if applicable. The Plan
Administrator is required by law to furnish each participant with a copy of this summary
annual report.

     (b) Prudent Actions by Plan Fiduciaries. In addition to creating rights for Plan participants,
ERISA imposes duties upon the people who are responsible for the operation of the employee benefit
plan. The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so
prudently and in the interest of you and other Plan participants and beneficiaries. No one,
including your employer, your union or any other person, may fire you or otherwise discriminate
against you in any way to prevent you from obtaining a Plan benefit or exercising your rights under
ERISA.

     (c) Enforce Your Rights. If your claim for a Plan benefit is denied or ignored, in whole or in
part, you have a right to know why this was done, to obtain copies of documents relating to the
decision without charge, and to appeal any denial, all within certain time schedules.

     Under ERISA, there are steps you can take to enforce the above rights. For instance, if you
request a copy of Plan documents or the latest annual report from the Plan, if applicable, and

12

 

do not receive them within 30 days, you may file suit in a Federal court. In such a case, the
court may require the Plan Administrator to provide the materials and pay you up to $110 a day
until you receive the materials, unless the materials were not sent because of reasons beyond the
control of the Plan Administrator.

     If you have a claim for benefits which is denied or ignored, in whole or in part, you may sue
or exercise such other rights as are described in this Plan.

     If you are discriminated against for asserting your rights, you may seek assistance from the
U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should
pay court costs and legal fees. If you are successful, the court may order the person you have sued
to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for
example, if it finds your claim is frivolous.

     (d) Assistance with Your Questions. If you have any questions about the Plan, you should
contact the Plan Administrator. If you have any questions about this statement or about your rights
under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you
should contact the nearest office of the Employee Benefits Security Administration, U.S. Department
of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries,
Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W.,
Washington, D.C. 20210. You may also obtain certain publications about your rights and
responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security
Administration.

Section 15. Execution.

     To record the adoption of the Plan as set forth herein, effective as of the date set forth
above, Siebel Systems, Inc. has caused its duly authorized officer to execute the same this
28th day of August, 2005.

	 	 	 	 	 
	 	 	Siebel Systems, Inc.
	 
	 	 	 	 
	 

	 	By:	 	/s/ George T. Shaheen
	 

	 	 	 	 
	 

	 	Title:	 	Chief Executive Officer
	 

	 	 	 	 

13

 

EXHIBIT A — GENERAL RELEASE OF ALL CLAIMS

FOR EMPLOYEES UNDER AGE 40 INDIVIDUAL AND GROUP TERMINATION

I understand and agree completely to the terms set forth in the Siebel Systems, Inc. Employee
Retention Benefit Plan (the “Plan”). In consideration for the benefits outlined in Section 4 of the
Plan (the “Severance Benefits”), to which I am not otherwise entitled, I hereby completely and
forever release Siebel Systems, Inc., and any affiliated parents, subsidiaries, and successor
corporations, and its former, current and future shareholders, directors, officers, trustees,
employer-sponsored employee benefit and welfare plans, and all the representatives and agents
(collectively referred to as “Siebel”) from any and all claims, actions, obligations, causes of
action, and liabilities of any and every kind, nature and character, known or unknown, which I may
now have, or which I ever had, against Siebel arising from or in any way connected with my
employment relationship with Siebel, or the termination thereof, including but not limited to all
“wrongful discharge” claims, all claims relating to any contracts of employment, express or
implied, claims under any compensation plan or policy, claims for fraud or misrepresentation, any
breach or violation of the covenant of good faith and fair dealing or any federal, state or
municipal statute or ordinance such as any claims under the Civil Rights Act of 1964, the Civil
Rights Act of 1991, the California Fair Employment and Housing Act, the California Labor Code, the
Age Discrimination in Employment Act, the Employee Income Security Act of 1974 (“ERISA”) and any of
the laws and regulations relating to employment discrimination and any and all claims for
attorneys’ fees and costs (collectively referred to as “Claims”).

I understand that Section 1542 of the California Civil Code provides as follows: A GENERAL RELEASE
DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR [EMPLOYEE] DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR [SIEBEL]. I further understand that Section 1542 gives me the right not
to release existing claims of which I am not now aware, unless I voluntarily choose to waive this
right. I further understand that if any law that is analogous to Section 1542 of the California
Civil Code exists in any other state, I voluntarily choose to waive those rights. Having been so
apprised, I nevertheless hereby voluntarily elect to waive my rights for any Claims against Siebel
that now exist in my favor, whether known or unknown. Notwithstanding any of the foregoing, I
hereby reserve any rights I may have to unemployment or worker’s compensation insurance, and under
Siebel’s 401k Plan.

I agree that I will not, on behalf of myself or in cooperation or participation with any other
person, firm, entity, corporation, institute, or government agency, file, refile, or in any manner
voluntarily participate in or prosecute any claim, grievance, complaint or action of any sort
(“Other Actions”), before any local, state or federal court, arbitrator, or administrative agency,
board or tribunal concerning any matter that was or could have been raised in connection with any
Claims released in the first paragraph above, unless otherwise compelled by a court or government
agency. I further agree to promptly dismiss or withdraw with prejudice any charges, claims or
complaints regarding any matter released in the first paragraph above. I further agree to cooperate
with and provide aid to Siebel as needed in its participation in litigation, if any, or as
otherwise required by law. I further agree that if I breach the terms of this General Release Of
All Claims (“General Release”), including, but not limited to, directly or indirectly, bringing,

14

 

joining or assisting in any legal action against Siebel related to Other Actions or any of the
Claims released hereunder, I agree to pay Siebel’s reasonable attorneys’ fees and costs incurred in
enforcing the terms of this General Release if it is lawful under applicable law for Siebel to
require such payments.

I understand that Siebel has given me seven (7) days in which to consider this General Release.

This General Release, together with the Plan, constitutes the entire understanding of the parties
on the subjects covered. I acknowledge that I have read and fully understand these documents; that
I was given the opportunity to consult with legal counsel of my own choosing and to have the terms
of these documents fully explained to me; that I am not executing this General Release in reliance
on any promises, representations or inducements other than those contained these documents; and
that I am executing this General Release voluntarily, free of any duress or coercion. I understand
that if any provision of this General Release is held invalid or unenforceable by any court of
final jurisdiction, all other provisions will be construed to remain fully valid, enforceable, and
binding on me. I further understand that if the release of Claims described above is held invalid
or unenforceable by any court of final jurisdiction, Siebel has the right in its sole discretion to
request repayment of the consideration described above, unless Siebel is prohibited from doing so
under applicable law.

	 	 	 	 	 
	Signed:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 
	 	 
	Date:
	 	 	 	 
	 

	 	 
	 	 

15

 

EXHIBIT B — GENERAL RELEASE OF ALL CLAIMS

FOR EMPLOYEES AGE 40 OR OLDER INDIVIDUAL TERMINATION

I understand and agree completely to the terms set forth in the Siebel Systems, Inc. Employee
Retention Benefit Plan (the “Plan”). In consideration for the benefits outlined in Section 4 of the
Plan (the “Severance Benefits”), to which I am not otherwise entitled, I hereby completely and
forever release Siebel Systems, Inc., and any affiliated parents, subsidiaries, and successor
corporations, and its former, current and future shareholders, directors, officers, trustees,
employer-sponsored employee benefit and welfare plans, and all the representatives and agents
(collectively referred to as “Siebel”) from any and all claims, actions, obligations, causes of
action, and liabilities of any and every kind, nature and character, known or unknown, which I may
now have, or which I ever had, against Siebel arising from or in any way connected with my
employment relationship with Siebel, or the termination thereof, including but not limited to all
“wrongful discharge” claims, all claims relating to any contracts of employment, express or
implied, claims under any compensation plan or policy, claims for fraud or misrepresentation, any
breach or violation of the covenant of good faith and fair dealing or any federal, state or
municipal statute or ordinance such as any claims under the Civil Rights Act of 1964, the Civil
Rights Act of 1991, the California Fair Employment and Housing Act, the California Labor Code, the
Age Discrimination in Employment Act, the Employee Income Security Act of 1974 (“ERISA”) and any of
the laws and regulations relating to employment discrimination and any and all claims for
attorneys’ fees and costs (collectively referred to as “Claims”).

I understand that Section 1542 of the California Civil Code provides as follows: A GENERAL RELEASE
DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR [EMPLOYEE] DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR [SIEBEL]. I further understand that Section 1542 gives me the right not
to release existing claims of which I am not now aware, unless I voluntarily choose to waive this
right. I further understand that if any law that is analogous to Section 1542 of the California
Civil Code exists in any other state, I voluntarily choose to waive those rights. Having been so
apprised, I nevertheless hereby voluntarily elect to waive my rights for any Claims against Siebel
that now exist in my favor, whether known or unknown. Notwithstanding any of the foregoing, I
hereby reserve any rights I may have to unemployment or worker’s compensation insurance, and under
Siebel’s 401k Plan.

I agree that I will not, on behalf of myself or in cooperation or participation with any other
person, firm, entity, corporation, institute, or government agency, file, refile, or in any manner
voluntarily participate in or prosecute any claim, grievance, complaint or action of any sort
(“Other Actions”), before any local, state or federal court, arbitrator, or administrative agency,
board or tribunal concerning any matter that was or could have been raised in connection with any
Claims released in the first paragraph above, unless otherwise compelled by a court or government
agency. I further agree to promptly dismiss or withdraw with prejudice any charges, claims or
complaints regarding any matter released in the first paragraph above. I further agree to cooperate
with and provide aid to Siebel as needed in its participation in litigation, if any, or as
otherwise required by law. I further agree that if I breach the terms of this General Release Of
All Claims (“General Release”), including, but not limited to, directly or indirectly, bringing,

16

 

joining or assisting in any legal action against Siebel related to Other Actions or any of the
Claims released hereunder, I agree to pay Siebel’s reasonable attorneys’ fees and costs incurred in
enforcing the terms of this General Release if it is lawful under applicable law for Siebel to
require such payments.

I understand that Siebel has given me twenty-one (21) days in which to consider this General
Release. I also understand for a period of seven (7) days after I sign this General Release, I may
revoke this General Release and that the General Release will not become effective until seven days
after I sign it and only then if I do not revoke it. In order to revoke this General Release, I
must deliver to the Plan Administrator, no later than seven (7) days after I execute this General
Release, a letter stating that I am revoking it. I understand and agree that until I execute and
deliver this General Release and the seven day revocation period has elapsed Siebel is entitled to
withhold any consideration set forth in the first paragraph of this General Release.

For Employees Age 40 or Older Individual Termination

This General Release, together with the Plan, constitutes the entire understanding of the parties
on the subjects covered. I acknowledge that I have read and fully understand these documents; that
I was given the opportunity to consult with legal counsel of my own choosing and to have the terms
of these documents fully explained to me; that I am not executing this General Release in reliance
on any promises, representations or inducements other than those contained these documents; and
that I am executing this General Release voluntarily, free of any duress or coercion. I understand
that if any provision of this General Release is held invalid or unenforceable by any court of
final jurisdiction, all other provisions will be construed to remain fully valid, enforceable, and
binding on me. I further understand that if the release of Claims described above is held invalid
or unenforceable by any court of final jurisdiction, Siebel has the right in its sole discretion to
request repayment of the consideration described above, unless Siebel is prohibited from doing so
under applicable law.

	 	 	 	 	 
	Signed:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 
	 	 
	Date:
	 	 	 	 
	 

	 	 
	 	 

17

 

EXHIBIT C — GENERAL RELEASE OF ALL CLAIMS

FOR EMPLOYEES AGE 40 OR OLDER GROUP TERMINATION

I understand and agree completely to the terms set forth in the Siebel Systems, Inc. Employee
Retention Benefit Plan (the “Plan”). In consideration for the benefits outlined in Section 4 of the
Plan (the “Severance Benefits”), to which I am not otherwise entitled, I hereby completely and
forever release Siebel Systems, Inc., and any affiliated parents, subsidiaries, and successor
corporations, and its former, current and future shareholders, directors, officers, trustees,
employer-sponsored employee benefit and welfare plans, and all the representatives and agents
(collectively referred to as “Siebel”) from any and all claims, actions, obligations, causes of
action, and liabilities of any and every kind, nature and character, known or unknown, which I may
now have, or which I ever had, against Siebel arising from or in any way connected with my
employment relationship with Siebel, or the termination thereof, including but not limited to all
“wrongful discharge” claims, all claims relating to any contracts of employment, express or
implied, claims under any compensation plan or policy, claims for fraud or misrepresentation, any
breach or violation of the covenant of good faith and fair dealing or any federal, state or
municipal statute or ordinance such as any claims under the Civil Rights Act of 1964, the Civil
Rights Act of 1991, the California Fair Employment and Housing Act, the California Labor Code, the
Age Discrimination in Employment Act, the Employee Income Security Act of 1974 (“ERISA”) and any of
the laws and regulations relating to employment discrimination and any and all claims for
attorneys’ fees and costs (collectively referred to as “Claims”).

I understand that Section 1542 of the California Civil Code provides as follows: A GENERAL RELEASE
DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR [EMPLOYEE] DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR [SIEBEL]. I further understand that Section 1542 gives me the right not
to release existing claims of which I am not now aware, unless I voluntarily choose to waive this
right. I further understand that if any law that is analogous to Section 1542 of the California
Civil Code exists in any other state, I voluntarily choose to waive those rights. Having been so
apprised, I nevertheless hereby voluntarily elect to waive my rights for any Claims against Siebel
that now exist in my favor, whether known or unknown. Notwithstanding any of the foregoing, I
hereby reserve any rights I may have to unemployment or worker’s compensation insurance, and under
Siebel’s 401k Plan.

I agree that I will not, on behalf of myself or in cooperation or participation with any other
person, firm, entity, corporation, institute, or government agency, file, refile, or in any manner
voluntarily participate in or prosecute any claim, grievance, complaint or action of any sort
(“Other Actions”), before any local, state or federal court, arbitrator, or administrative agency,
board or tribunal concerning any matter that was or could have been raised in connection with any
Claims released in the first paragraph above, unless otherwise compelled by a court or government
agency. I further agree to promptly dismiss or withdraw with prejudice any charges, claims or
complaints regarding any matter released in the first paragraph above. I further agree to cooperate
with and provide aid to Siebel as needed in its participation in litigation, if any, or as
otherwise required by law. I further agree that if I breach the terms of this General Release Of
All Claims (“General Release”), including, but not limited to, directly or indirectly, bringing,

18

 

joining or assisting in any legal action against Siebel related to Other Actions or any of the
Claims released hereunder, I agree to pay Siebel’s reasonable attorneys’ fees and costs incurred in
enforcing the terms of this General Release if it is lawful under applicable law for Siebel to
require such payments.

I understand that Siebel has given me forty-five (45) days in which to consider this General
Release. I also understand for a period of seven (7) days after I sign this General Release, I may
revoke this General Release and that the General Release will not become effective until seven days
after I sign it and only then if I do not revoke it. In order to revoke this General Release, I
must deliver to the Plan Administrator, no later than seven (7) days after I execute this General
Release, a letter stating that I am revoking it. I understand and agree that until I execute and
deliver this General Release and the seven day revocation period has elapsed Siebel is entitled to
withhold any consideration set forth in the first paragraph of this General Release.

For Employees Age 40 or Older Group Termination

This General Release, together with the Plan, constitutes the entire understanding of the parties
on the subjects covered. I acknowledge that I have read and fully understand these documents; that
I was given the opportunity to consult with legal counsel of my own choosing and to have the terms
of these documents fully explained to me; that I am not executing this General Release in reliance
on any promises, representations or inducements other than those contained these documents; and
that I am executing this General Release voluntarily, free of any duress or coercion. I understand
that if any provision of this General Release is held invalid or unenforceable by any court of
final jurisdiction, all other provisions will be construed to remain fully valid, enforceable, and
binding on me. I further understand that if the release of Claims described above is held invalid
or unenforceable by any court of final jurisdiction, Siebel has the right in its sole discretion to
request repayment of the consideration described above, unless Siebel is prohibited from doing so
under applicable law.

	 	 	 	 	 
	Signed:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 
	 	 
	Date:
	 	 	 	 
	 

	 	 
	 	 

19

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