|**COMERICA**
|------------

|Technology & Life
      Sciences Division
|-----------------------------------------

|
|

|
|

|
|

|Art Taylor
|----------

|Chief Financial Officer
|-----------------------

|Evolve Software, Inc.
|---------------------

|1400 65th Street, Suite 100
|---------------------------

|Emeryville, CA 94608
|--------------------

|
|

|September 23,
2002
|------------------

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|
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|**CONFIDENTIAL**
|----------------

|
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|
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|Dear Art:
|---------

|
|

|Comerica Bank - California is pleased to
      provide this commitment letter to Evolve Software, Inc., to make
      available the following credit facility.  This commitment supersedes
      any previous communications with or correspondence from the Bank and is
      subject to execution of a definitive written agreement and documentation
      for the transaction described in this letter.  The terms of the
      financing are as follows:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|
|

|**BORROWER:** | **Evolve Software, Inc**. (the
      "Borrower")
|------------- | ------------------------------------------------





|
|

|**LENDER:** | **Comerica Bank - California**  (the
      "Bank")
|----------- | --------------------------------------------------

|
|

|**FACILITY:** | A)  $2,320,901.59  Standby Letter of
      Credit
|------------- | -------------------------------------------------

| | B )  $1,980,326.62  Term
  Loan
| | -------------------------------

|
|

|**TERMS:** | A)  The Standby Letter of Credit and Security
      Agreement dated as of November 23, 1999 (as amended from time to time ,
      the "SBLC").  The SBLC has annual renewal dates of March 1 and is
      scheduled to expire on July 20, 2007.  The Standby Letter of Credit
      will remain fully cash secured via a Certificate of Deposit held at the
      Bank.
|---------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|**** | B)  $198,032.66 principal plus accrued interest
      payments per  month.
|---- | --------------------------------------------------------------------------





|
|

|**MATURITY:** | A)  March 31, 2003 with annual
      renewals
|------------- | ---------------------------------------------

|**** | B)  July 31, 2003
|---- | -----------------

|
|

|**INTEREST RATE:** | A)  1.00%  per  annum  at the
      prorated SBLC amount. The Bank will refund to the Borrower SBLC fees
      collected in excess of 1.00% at the prorated SBLC amount for the period
      between March 1, 2002 and March 1, 2003.
|------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|**** | B)  Bank's Prime Rate + 1.00% per annum
      (floating).
|---- | ---------------------------------------------------------

|
|

|**COLLATERAL:** | Blanket  Security  interest  on 
      all  assets of the Borrower perfected by an UCC-1 filing with the
      Bank in first position including a specific filing on Intellectual
      Property.  Certificates of Deposit #939750000009510 held at Bank cash
      securing the Standby Letter of Credit.  Previously leased equipment
      excluded.  All facilities to be cross-collateralized and
      cross-defaulted.
|--------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|
|

| |  | 
| |  | 

|
|

|
|

|**COMERICA**
|------------

|Technology & Life Sciences
    Division
|---------------------------------------

|
|

|
|

|
|

|**** | 1) Minimum Bank Liquidity Ratio1 of
      2.00:1.00.
|---- | ----------------------------------------------------



|
|

|**** | 2) On a quarterly basis, Revenue greater
      than:
|---- | ----------------------------------------------------

|
|

|**** | $4,500,000 for quarter ending
  9/30/02
|---- | ---------------------------------------

|**** | $5,000,000 for quarter ending
  12/31/02
|---- | ----------------------------------------

|**** | $6,000,000 for quarter ending
  3/31/03
|---- | ---------------------------------------

|**** | $7,000,000 for quarter ending 6/30/03 and
      thereafter
|---- | ----------------------------------------------------------

|
|

|**** | 1   Bank  Liquidity 
      Ratio  is defined as  unrestricted cash held  at 
      Bank  and/or  Comerica  Securities, divided by all non-cash
      secured Bank exposure, however unrestricted cash at Bank  not 
      be  less  than 
$2,000,000.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|
|

|**OTHER
CONVENANTS:** | 1) Borrower shall notify Bank in writing of any legal
      action commenced against it that may result in damages over
      $100,000.  Borrower shall provide Bank with such notice immediately
      upon Borrower's receipt of notice of such legal
  action.
|--------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|**** | 2)  Without  Bank's  prior 
      approval  not  being  reasonably withheld, 
      Borrower  shall  not:
|---- | ---------------------------------------------------------------------------------------------------------



|a. |  | Enter into any acquisitions, except for non-cash
      transactions not resulting in change in control and the Borrower is the
      surviving entity.  Borrower may enter into any merger as
      long as (i) Borrower is the surviving entity, (ii) and event of default does not exist before or after giving
      effect to such
  transaction.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|b. |  | Enter into a major debt agreements except
      for:
|-- |  | ----------------------------------------------------

| | i. | Debt existing at the closing of this
  loan.
| | -- | --------------------------------------------

| | ii. | Debt secured by a specific lien for the purchase of
      equipment not to exceed $100,000.
| | --- | -------------------------------------------------------------------------------------------

| | iii. | Subordinated Debt, provided that reasonably appropriate
      Subordination Agreements and Inter-Creditor Agreements must be
      executed.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------

| | iv. | Debt to trade creditors incurred in the ordinary course of
      business.
| | --- | --------------------------------------------------------------------------

|c. |  | Hypothecate existing
      assets.
|-- |  | ----------------------------------

|d. |  | Make distributions or dividends to
      shareholders.
|-- |  | ------------------------------------------------------

|
|

|**** | 3)  Borrower shall provide Bank proof of insurance on
      all tangible corporate assets and a Lender's Loss Payable Clause with Bank
      as loss payee.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|**** | 4)  Borrower shall reimburse all reasonable
      out-of-pocket expenses, including loan documentation, due diligence,
      negotiation, and closing expenses, whether or not the transaction is
      closed by the Bank.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|**REPORTING** | 1) Monthly internally prepared financial statements
      with the  Bank's Compliance Certificate within 30 days of month
      end.
|------------- | ------------------------------------------------------------------------------------------------------------------------------------

|**REQUIREMENTS:** | 2) Annual 10K and compliance certificate within 95
      days of the fiscal year end.
|----------------- | -------------------------------------------------------------------------------------

|**** | 3)  Budgets, sales projections, operating plan or
      other financial exhibits which Bank may reasonably
      request.
|---- | -------------------------------------------------------------------------------------------------------------------------

|
|

|**CONDITIONS OF
      CLOSING:** | The following shall be satisfied by Borrower prior to
      closing and shall be conditions precedent to Bank's obligation to fund the
      loan:
|-------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------

|
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| |  | 
| |  | 

|
|

|
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|**COMERICA**
|------------

|Technology & Life Sciences
      Division
|-----------------------------------------

|
|

|
|

|
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| |  |  |  |  | 1) | Borrower  shall execute and deliver to Bank any and
      all Documents required by Bank within 90 days of the Credit
      Approval.
| |  |  |  |  | -- | -------------------------------------------------------------------------------------------------------------------------------------

|
|

| |  |  |  |  | 2) | No material adverse change in Borrower's business or
      financial condition.  No material impairment of the prospect of
      repayment of any portion of the Obligations to Bank or a material
      impairment of the value or priority of the security interest in the
      Collateral which is being pledged to the Bank.
| |  |  |  |  | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|**MISCELLANEOUS:** | All reasonable fees, including all legal fees and
      out-of-pocket expenses incurred by Bank shall be reimbursed by the
      Borrower, whether or not the transaction
    closes.
|------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|**EXPIRATION:** | Unless  Borrower accepts this commitment letter on or
      before September 26, 2002, this commitment letter will expire and be of no
      further effect.
|--------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|This letter is provided solely for your information and is
      delivered to you with the understanding that neither it, nor its
      substance, shall be disclosed nor relied upon by any third person, except
      those who are in confidential relationship to you, or where the same is
      required by law.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|If the terms set forth above are acceptable to you, please
      so indicate by signing and returning the original of this letter to Bank
      by September 26, 2002.  Upon return of this letter, the Bank will
      prepare drafts of definitive loan documents for your
  review.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|It is intended that all legal rights and obligations of
      the Bank and Borrower would be set forth in signed definitive loan
      documents acceptable to Bank and its counsel, which will contain covenants
      in addition to the ones contained above.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|On behalf of the Bank, we are delighted to make this
      credit facility available to Evolve Software, Inc., and look forward to a
      continued long and mutually rewarding relationship.  Please don't
      hesitate to call if you have any questions, I can be reached at (415)
      705-5814.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|Sincerely,
|----------

|
|

|/s/ Philip Koblis
|-----------------

|Philip Koblis
|-------------

|Assistant Vice President
|------------------------

|Technology & Life Sciences
  Division
|-------------------------------------

| |  | Accepted and Agreed
to:
| |  | -----------------------

|
|

| |  | **EVOLVE SOFTWARE,
      INC.**
| |  | -------------------------------

|
|

|
|

| |  | By:       /s/
      Arthur T. Taylor
| |  | ------------------------------------

|
|

| |  | Title:    Arthur T.
      Taylor, VP & CFO
| |  | ------------------------------------------



|
|

| |  | Date:   
      9/23/02
| |  | ----------------------



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