<PAGE>   1
                                                                   EXHIBIT 10.17


                 AMENDED AND RESTATED BUSINESS LOAN AGREEMENT

Borrower:      Remedy Corp.
               1505 Salado Drive
               Mountain View, CA 94043

Lender:        Silicon Valley Bank
               3003 Tasman Drive
               Santa Clara, CA 95054

------------------------------------------------------------------------------
THIS AMENDED AND RESTATED BUSINESS LOAN AGREEMENT between Remedy Corp.
("Borrower") and Silicon Valley Bank ("Lender") is made and executed on the
following terms and conditions. Borrower has received prior commercial loans
from Lender or has applied to Lender for a commercial loan or loans and other
financial accommodations, including those which may be described on any exhibit
or schedule attached to this Agreement. All such loans and financial
accommodations, together with all future loans and financial accommodations
from Lender to Borrower, are referred to in this Agreement individually as the
"Loan" and collectively as the "Loans." Borrower understands and agrees that:
(a) in granting, renewing, or extending any Loan, Lender is relying upon
Borrower's representations,warranties, and agreements, as set forth in this
Agreement; (b) the granting, renewing, or extending of any Loan by Lender at
all times shall be subject to Lender's sole judgment and discretion; and (c) all
such Loans shall be and shall remain subject to the following terms and
conditions of this Agreement.

TERM. This Agreement shall be effective as of June 15, 1997, and shall continue
thereafter until all indebtedness of Borrower to Lender has been performed in
full and the parties terminate this Agreement in writing.

DEFINITIONS. The following words shall have the following meanings when used in
this Agreement. Terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code. All
references to dollar amounts shall mean amounts in lawful money of the United
States of America.

     Agreement. The word "Agreement" means this Amended and Restated Business
     Loan Agreement, as this Amended and Restated Business Loan Agreement may be
     amended or modified from time to time, together with all exhibits and
     schedules attached to this Amended and Restated Business Loan Agreement
     from time to time.

     Borrower. The word "Borrower" means Remedy Corp.. The word "Borrower" also
     includes, as applicable, all subsidiaries and affiliates of Borrower as
     provided below in the paragraph titled "Subsidiaries and Affiliates."

     CERCLA. The word "CERCLA" means the Comprehensive Environmental Response,
     Compensation, and Liability Act of 1980, as amended.

     Cash Flow. The words "Cash Flow" mean net income after taxes, and exclusive
     of extraordinary gains and income, plus depreciation and amortization.

     Debt. The word "Debt" means all of Borrower's liabilities excluding
     Subordinated Debt.

     ERISA. The word "ERISA" means the Employee Retirement Income Security Act
     of 1974, as amended.

     Event of Default. The words "Event of Default" mean and include without
     limitation any of the Events of Default set forth below in the section
     titled "EVENTS OF DEFAULT."

     Indebtedness. The word "Indebtedness" means and includes any and all
     indebtedness of Borrower to Lender, now or hereafter arising or incurred,
     including, without limitation, the Indebtedness evidenced by the Note,
     including all principal and interest, together with all other indebtedness
     and costs and expenses for which Borrower is responsible under this
     Agreement or under any Related Documents.

     Lender. The word "Lender" means Silicon Valley Bank, its successors and
     assigns.

     Liquid Assets. The words "Liquid Assets" mean Borrower's cash on hand plus
     Borrower's readily marketable securities.

     Loan. The word "Loan" or "Loans" means and includes without limitation any
     and all commercial loans and financial accommodations from Lender to
     Borrower whether now or hereafter existing, and however evidenced,
     including without limitation those loans and financial accommodations
     described herein or described on any exhibit or schedule attached to this
     Agreement from time to time.

     Note. The word "Note" means and includes without limitation Borrower's
     promissory note or notes, if any, evidencing Borrower's Loan obligations in
     favor of Lender, as well as any substitute, replacement or refinancing note
     or notes therefor.

     Permitted Liens. The words "Permitted Liens" mean: (a) liens for taxes,
     assessments, or similar charges either not yet due or being contested in
     good faith; (b) liens of materialmen, mechanics, warehousemen, or carriers,
     or other like liens arising in the ordinary course of business and securing
     obligations which are not yet delinquent; (c) purchase money liens or
     purchase money security interests upon or in any property acquired or held
     by Borrower in the ordinary course of business to secure indebtedness
     outstanding on the date of this Agreement or permitted to be incurred under
     the paragraph of this Agreement titled "Indebtedness and Liens", (d) liens
     and security interests which, as of the date of this Agreement, have been
     disclosed to any approved by the Lender in writing; and (e) liens for
     capital leases; (f) those liens and security interests which in the
     aggregate constitute an immaterial and insignificant monetary amount with
     respect to the net value of Borrower's assets.

     Related Documents. The words "Related Documents" mean and include without
     limitation all promissory notes, credit agreement, loan agreement,
     environmental agreements, guaranties, security agreements, mortgages, deeds
     of trust, and all other instruments, agreements and documents, whether now
     or hereafter existing, executed in connection with the Indebtedness.

     SARA. The word "SARA" means the Superfund Amendments and Reauthorization
     Act of 1986 as now or hereafter amended.

     Subordinated Debt. The words "Subordinated Debt" mean indebtedness and
     liabilities of Borrower which have been subordinated by written agreement
     to indebtedness owed by Borrower to Lender in form and substance acceptable
     to Lender.
<PAGE>   2
                  AMENDED AND RESTATED BUSINESS LOAN AGREEMENT
                                     PAGE 2

     TANGIBLE NET WORTH. The words "Tangible Net Worth" mean Borrower's total
     assets excluding all intangible assets (i.e., goodwill, trademarks,
     patents, copyrights, organizational expenses, and similar intangible items,
     but including leaseholds and leasehold improvements) less total Debt.

     WORKING CAPITAL. The words "Working Capital" mean Borrower's current
     assets, excluding prepaid expenses, less Borrower's current liabilities.

CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make the initial
Loan Advance and each subsequent Loan Advance under this Agreement shall be
subject to the fulfillment to Lender's satisfaction of all of the conditions
set forth in this Agreement and in the Related Documents.

     LOAN DOCUMENTS. Borrower shall provide to Lender in form satisfactory to
     Lender the following documents for the Loan: (a) the Note, (b) Negative
     Pledge Agreement; and (c) any other documents required under this Agreement
     or by Lender or its counsel.

     BORROWER'S AUTHORIZATION. Borrower shall have provided in form and
     substance satisfactory to Lender properly certified resolutions, duly
     authorizing the execution and delivery of this Agreement, the Note and the
     Related Documents, and such other authorizations and other documents and
     instruments as Lender or its counsel, in their sole discretion, may
     require.

     PAYMENT OF FEES AND EXPENSES. Borrower shall have paid to Lender all fees,
     charges, and other expenses which are then due and payable as specified in
     this Agreement or any Related Document.

     REPRESENTATIONS AND WARRANTIES. The representations and warranties set
     forth in this Agreement, in the Related Documents, and in any document or
     certificate delivered to Lender under this Agreement are true and correct.

     NO EVENT OF DEFAULT. There shall not exist at the time of any advance a
     condition which would constitute an Event of Default under this Agreement.

REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as
of the date of this Agreement, as of the date of each disbursement of Loan
proceeds, as of the date of any renewal, extension or modification of any Loan,
and at all times any Indebtedness exists:

     ORGANIZATION. Borrower is a corporation which is duly organized, validly
     existing, and in good standing under the laws of the State of Delaware and
     is validly existing and in good standing in all states in which Borrower
     is doing business. Borrower has the full power and authority to own its
     properties and to transact the businesses in which it is presently engaged
     or presently proposes to engage. Borrower also is duly qualified as a
     foreign corporation and is in good standing in all states in which the
     failure to so qualify would have a material adverse effect on its
     businesses or financial condition.

     AUTHORIZATION. The execution, delivery, and performance of this Agreement
     and all Related Documents by Borrower, to the extent to be executed,
     delivered or performed by Borrower, have been duly authorized by all
     necessary action by Borrower, do not require the consent or approval of any
     other person, regulatory authority or governmental body; and do not
     conflict with, result in a violation of, or constitute a default under (a)
     any provision of its articles of incorporation or organization, or bylaws,
     or any agreement or other instrument binding upon Borrower or (b) any law,
     governmental regulation, court decree, or order applicable to Borrower.

     FINANCIAL INFORMATION. Each financial statement of Borrower supplied to
     Lender truly and completely disclosed Borrower's financial condition as of
     the date of the statement, and there has been no material adverse change
     in Borrower's financial condition subsequent to the date of the most
     recent financial statement supplied to Lender. Borrower has not material
     contingent obligations except as disclosed in such financial statements.

     LEGAL EFFECT. This Agreement constitutes, and any instrument or agreement
     required hereunder to be given by Borrower when delivered will constitute,
     legal, valid and binding obligations of Borrower enforceable against
     Borrower in accordance with their respective terms.

     PROPERTIES. Except as contemplated by this Agreement or as previously
     disclosed in Borrower's financial statements or in writing to Lender and
     as accepted by Lender, and except for property tax liens for taxes not
     presently due and payable, Borrower owns and has good title to all of
     Borrower's properties free and clear of all Security Interests, and has
     not executed any security documents or financing statements relating to
     such properties. All of Borrower's properties are titled in Borrower's
     legal name, and Borrower has not used, or filed a financing statement
     under, any other name for at least the last five (5) years.

     HAZARDOUS SUBSTANCES. The terms "hazardous waste," "hazardous substance,"
     "disposal," "release" and "threatened release," as used in this Agreement,
     shall have the same meanings as set forth in the "CERCLA," "SARA," the
     Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.,
     the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et
     seq., Chapters 6.5 through 7.7 of Division 20 of the California Health and
     Safety Code, Section 25100, et seq., or otherwise applicable state or
     Federal laws, rules, or regulations adopted pursuant to any of the
     foregoing. Except as disclosed to and acknowledge by Lender in writing,
     Borrower represents and warrants that: (a) During the period of Borrower's
     ownership of the properties, there has been no use, generation,
     manufacture, storage, treatment, disposal, release or threatened release of
     any hazardous waste or substance by any person on, under, about or from
     any of the properties. (b) Borrower has no knowledge of, or reason to
     believe that there has been (i) any use, generation, manufacture, storage,
     treatment, disposal, release or threatened release of any hazardous waste
     or substance on, under, about or from the properties by any prior owners
     or occupants of any of the properties, or (ii) any actual or threatened
     litigation or claims of any kind by any person relating to such matters.
     (c) Neither Borrower nor any tenant, contractor, agent or other authorized
     user of any of the properties shall use, generate, manufacture, store,
     treat, dispose of, or release any hazardous waste or substance on, under,
     about or from any of the properties; and any such activity shall be
     conducted in compliance with all applicable federal, state, and local
     laws, regulations, and ordinances, including without limitation those
     laws, regulations and ordinances described above. Borrower authorizes
     Lender and its agents to enter upon the properties to make such
     inspections and tests as Lender may deem appropriate to determine
     compliance of the properties with this section of the Agreement. Any
     inspections or tests made by Lender shall be at Borrower's expense and for
     Lender's purposes only and shall not be construed to create any
     responsibility or liability on the part of Lender to Borrower or to any
     other person. The representations and warranties contained herein are
     based on Borrower's due diligence in investigating the properties for
     hazardous waste and hazardous substances and such representations and
     warranties are to the best of Borrower's knowledge. Borrower hereby (a)
     releases and waives any future claims against Lender for indemnity or
     contribution in the event Borrower becomes liable for cleanup or other
     costs under any such laws, and (b) agrees to indemnify and hold harmless
     Lender against any and all claims, losses, liabilities, damages,
     penalties, and expenses which Lender may directly or indirectly sustain or
     suffer resulting from a breach of this section of the Agreement or as a
     consequence of any use, generation, manufacture, storage, disposal,
     release or threatened release occurring prior to Borrower's ownership or
     interest in the properties, whether or not the same was or should have
     been known to

<PAGE>   3

                  AMENDED AND RESTATED BUSINESS LOAN AGREEMENT
                                     PAGE 3

Borrower. The provisions of this section of the Agreement, including the
obligation to indemnify, shall survive the payment of the indebtedness and the
termination or expiration of this Agreement and shall not be affected by
Lender's acquisition of any interest in any of the properties, whether by
foreclosure or otherwise.

Litigation and Claims. No litigation, claim, investigation, administrative
proceeding or similar action (including those for unpaid taxes) against
Borrower is pending or threatened, and no other event has occurred which may
materially adversely affect Borrower's financial condition or properties, other
than litigation, claims, or other events, if any, that have been disclosed to
and acknowledged by Lender in writing.

Taxes. To the best of Borrower's knowledge, all tax returns and reports of
Borrower that are or were required to be filed, have been filed, and all taxes
assessments and other governmental charges have been paid in full, except those
presently being or to be contested by Borrower in good faith in the ordinary
course of business and for which adequate reserves have been provided.

Lien Priority. Borrower acknowledges and agrees, among other things, not to
sell, transfer, assign, mortgage, pledge, lease, grant a security interest in,
or encumber any of Borrower's inventory, equipment, accounts, chattel paper,
contract rights, general intangibles, instruments, documents, fixtures and
deposit accounts without Lender's prior consent, which consent shall not be
unreasonably withheld.

Binding Effect. This Agreement, the Note, all Security Agreements directly or
indirectly securing repayment of Borrower's Loan and Note and all of the
Related Documents are binding upon Borrower as well as upon Borrower's
successors, representatives and assigns, and are legally enforceable in
accordance with their respective terms.

Commercial Purposes. Borrower intends to use the Loan proceeds solely for
business or commercial related purposes.

Employee Benefit Plans. Each employee benefit plan as to which Borrower may
have any liability complies in all material respect with all applicable
requirements of law and regulations, and (i) no Reportable Event nor Prohibited
Transaction (as defined in ERISA) has occurred with respect to any such plan,
(ii) Borrower has not withdrawn from any such plan or initiated steps to do so,
(iii) no steps have been taken to terminate any such plan, and (iv) there are
no unfunded liabilities other than those previously disclosed to Lender in
writing.

Investment Company Act. Borrower is not an "investment company" or a company
"controlled" by an "investment company", within the meaning of the Investment
Company Act of 1940, as amended.

Public Utility Holding Company Act. Borrower is not a "holding company", or a
"subsidiary company" of a "holding company", or an "affiliate" of a "holding
company" or of a "subsidiary company" of a "holding company", within the meaning
of the Public Utility Holding Company Act of 1935, as amended.

Regulations G, T and U. Borrower is not engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulations G, T and
U of the Board of Governors of the Federal Reserve System).

Location of Borrower's Offices and Records. Borrower's place of business, or
Borrower's Chief executive office, if Borrower has more than one place of
business, is located at 1505 Salado Drive, Mountain View, CA 94043. Unless
Borrower has designated otherwise in writing this location is also the office
or offices where Borrower keeps its records concerning the Collateral.

Information. All information heretofore or contemporaneously herewith furnished
by Borrower to Lender for the purposes of or in connection with this Agreement
or any transaction contemplated hereby is, and all information hereafter
furnished by or on behalf of Borrower to Lender will be, true and accurate in
every material respect on the date as of which such information is dated or
certified; and none of such information is or will be incomplete by omitting to
state any material fact necessary to make such information not misleading.

Claims and Defenses. There are no defenses or counterclaims, offsets or other
adverse claims, demands or actions of any kind, personal or otherwise, that
Borrower, Grantor, or any Guarantor could assert with respect to the Note, Loan,
Indebtedness, this Agreement, or the Related Documents.

Survival of Representations and Warranties. Borrower understands and agrees that
Lender, without independent investigation, is relying upon the above
representations and warranties in extending Loan Advance to Borrower. Borrower
further agrees that the foregoing representations and warranties shall be
continuing in nature and shall remain in full force and effect until such time
as Borrower's indebtedness shall be paid in full, or until this Agreement shall
be terminated in the manner provided above, whichever is the last to occur.

AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, while
this Agreement is in effect, Borrower will:

Litigation. Promptly inform Lender in writing of (a) all material adverse
changes in Borrower's financial condition, and (b) all existing and all
threatened litigation, claims, investigations, administrative proceedings or
similar actions affecting Borrower or any Guarantor which could materially
affect the financial condition of Borrower or the financial condition of any
Guarantor.

Financial Records Maintain it books and records in accordance with generally
accepted accounting principles, applied on a consistent basis, and permit lender
to examine and audit borrower's books and records at all reasonable times.

Financial Statements. Furnish Lender with, as soon as available, but in no event
later than ninety (90) days after the end of each fiscal year, Borrower's 10K
report, balance sheet and income statement for the year ended, audited by a
certified public accountant satisfactory to Lender, and, as soon as available,
but in no event later than forty-five (45) days after the end of each fiscal
quarter, Borrower's balance sheet and profit and loss statement for the period
ended, prepared and certified as correct to the best knowledge and belief by
Borrower's chief financial officer or other officer or person acceptable to
Lender. All financial reports required to be provided under this Agreement shall
be prepared in accordance with generally accepted accounting principles, applied
on a consistent basis, and certified by Borrower as being true and correct.

Compliance Certificate. Unless waived in writing by Lender, provide Lender
quarterly, within 45 days, provided that an outstanding balance exists under
Borrower's line of credit facility, and at the time of each disbursement of
Loan proceeds, with a certificate executed by Borrower's chief financial
officer, or other officer or person acceptable to Lender, certifying that the
representations and warranties set forth in this Agreement are
<PAGE>   4

                  AMENDED AND RESTATED BUSINESS LOAN AGREEMENT
                                     PAGE 4

   true and correct as of the date of the certificate and further certifying
   that, as of the date of the certificate, no Event of Default exists under
   this Agreement.

   Additional Information.  Furnish such additional information and statements,
   lists of assets and liabilities, agings of receivables and payables,
   inventory schedules, budgets, forecasts, tax returns, and other reports with
   respect to Borrower's financial condition and business operations as Lender
   may request from time to time.

   Financial Covenants. Borrower shall maintain, on a quarterly basis, a minimum
   Quick Ratio of 2.00 to 1.00, and profitability, net of capitalized software.
   For calculation purposes, Quick Ratio is defined as cash plus cash
   equivalents plus short term investments divided by current liabilities minus
   deferred revenue. Except as provided above, all computations made to
   determine compliance with the requirements contained in this paragraph shall
   be made in accordance with generally accepted accounting principles, applied
   on a consistent basis, and certified by Borrower as being true and correct.

   Insurance. Maintain fire and other risk insurance, public liability
   insurance, and such other insurance as lender may require with respect to
   Borrower's properties and operations, in form, amounts, coverages and with
   insurance companies reasonably acceptable to Lender.

   Other Agreements. Comply with all terms and conditions of all other
   agreements, whether now or hereafter existing, between Borrower and any other
   party and notify Lender immediately in writing of any default in connection
   with any other such agreements.

   Loan Proceeds. Use all Loan proceeds solely for Borrower's business
   operations, unless specifically consented to the contrary by Lender in
   writing.

   Taxes, Charges and Liens. Pay and discharge when due all of its indebtedness
   and obligations, including without limitation all assessments, taxes,
   governmental charges, levies and liens, of every kind and nature, imposed
   upon Borrower or its properties, income, or profits, prior to the date on
   which penalties would attach, and all lawful claims that, if unpaid, might
   become a lien or charge upon any of Borrower's properties, income, or
   profits. Provided however, Borrower will not be required to pay and discharge
   any such assessment, tax, charge, levy, lien or claim so long as (a) the
   legality of the same shall be contested in good faith by appropriate
   proceedings, and (b) Borrower shall have established on its books adequate
   reserves with respect to such contested assessment, tax, charge, levy, lien,
   or claim in accordance with generally accepted accounting practices.
   Borrower, upon demand of lender, will furnish to Lender evidence of payment
   of the assessments, taxes, charges, levies, liens and claims and will
   authorize the appropriate governmental official to delivery to Lender at any
   time a written statement of any assessments, taxes, charges, levies, liens
   and claims against Borrower's properties, income, or profits.

   Performance. Perform and comply with all terms, conditions, and provisions
   set forth in this Agreement and in the Related Documents in a timely manner,
   and promptly notify Lender if Borrower learns of the occurrence of any event
   which constitutes an Event of Default under this Agreement or under any of
   the Related Documents.

   Operations. Maintain executive and management personnel with substantially
   the same qualifications and experience as the present executive and
   management personnel; provide written notice to Lender of any change in
   executive and management personnel; conduct its business affairs in a
   reasonable and prudent manner and in compliance with all applicable federal,
   state and municipal laws, ordinances, rules and regulations respecting its
   properties, charters, businesses and operations, including without
   limitation, compliance with the Americans With Disabilities Act and with all
   minimum funding standards and other requirements of ERISA and other laws
   applicable to Borrower's employee benefit plans.

   Environmental Studies. Promptly conduct and complete, at Borrower's expense,
   all such investigations, studies, samplings and testings as may be requested
   by Lender or any governmental authority relative to any substance defined as
   toxic or a hazardous substance under any applicable federal, state, or local
   law, rule, regulation, order or directive, or any waste or by-product
   thereof, at or affecting any property or any facility owned, leased or used
   by Borrower.

   Inspection. Permit employees or agents of Lender at any reasonable time with
   reasonable notice to examine or audit Borrower's books, accounts, and record
   and to make copies and memoranda of Borrower's books, accounts, and records.
   If Borrower now or at any time hereafter maintains any records (including
   without limitation computer generated records and computer software programs
   for the generation of such records) in the possession of a third party,
   Borrower, upon request of Lender, shall notify such party to permit Lender
   free access to such records at all reasonable times and to provide Lender
   with copies of any records it may request, all at Borrower's expense.

   Environmental Compliance and Reports. Borrower shall comply in all respects
   with all environmental protection federal, state and local laws, statutes,
   regulations and ordinances; not cause or permit to exist, as a result of an
   intentional or unintentional action or omission on its part or on the part of
   any third party, on property owned and/or occupied by Borrower, any
   environmental activity where damage may result to the environment, unless
   such environmental activity is pursuant to and in compliance with the
   conditions of a permit issued by the appropriate federal, state or local
   governmental authorities; shall furnish to Lender promptly and in any event
   within thirty (30) days after receipt thereof a copy of any notice, summons,
   lien, citation, directive, letter or other communication from any
   governmental agency or instrumentality concerning any intentional or
   unintentional action or omission on Borrower's part in connection with any
   environmental activity whether or not there is damage to the environment
   and/or other natural resources.

   Additional Assurances. Make, execute and deliver to Lender such promissory
   notes, mortgages, deeds of trust, security agreements, financing statements,
   instruments, documents and other agreements as Lender or its attorneys may
   reasonably request to evidence and secure the Loans and to perfect all
   Security Interests.

NEGATIVE COVENANTS.  Borrower covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent of
Lender, such consent not to be unreasonably withheld:

   Indebtedness and Liens. (a) Except for trade debt and equipment leases
   incurred in the normal course of business and indebtedness to Lender
   contemplated by this Agreement, create, incur or assume indebtedness for
   borrowed money, including capital leases, (b) except as allowed as a
   Permitted Lien, sell, transfer, mortgage, assign, pledge, lease, grant a
   security interest in, or encumber any of Borrower's assets, or (c) sell with
   recourse any of Borrower's accounts, except to Lender.

<PAGE>   5
                  AMENDED AND RESTATED BUSINESS LOAN AGREEMENT
                                     PAGE 5


     Continuity of Operations. (a) Engage in any business activities
     substantially different than those in which Borrower is presently engaged,
     (b) cease operations, liquidate, change ownership, change its name,
     dissolve or transfer or sell Collateral out of the ordinary course of
     business, (Borrower is allowed to merge or acquire another entity,
     provided however, that if an outstanding principal balance exists under
     Borrower's line of credit facility, Borrower's involvement in such mergers
     or acquisitions is limited to fifteen percent (15%) of Borrower's cash,
     cash equivalents and short term investment balances as determined by
     Borrower's financial statement and verification of cash accounts), (c) pay
     any dividends on Borrower's stock (other than dividends payable in its
     stock), provided, however, that notwithstanding the foregoing, but only so
     long as no Event of Default has occurred and is continuing or would result
     from the payment of dividends, if Borrower is a "Subchapter S Corporation"
     (as defined in the Internal Revenue Code of 1986, as amended), Borrower
     may pay cash dividends on its stock to its shareholders from time to time
     in amounts necessary to enable the shareholders to pay income taxes and
     make estimated income tax payments to satisfy their liabilities under
     federal and state law which arise solely from their status as Shareholders
     of a Subchapter S Corporation because of their ownership of shares of
     stock of Borrower, or (d) purchase or retire any of Borrower's outstanding
     shares or alter or amend Borrower's capital structure, if such alteration
     or amendment would have a material adverse effect.

     Loans. Acquisitions and Guaranties. (a) Loan, invest in or advance money
     or assets, or (b) incur any obligation as surety or guarantor other than
     in the ordinary course of business.

CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to
Borrower, whether under this Agreement or under any other agreement, Lender
shall have no obligation to make Loan Advances or to disburse Loan proceeds if:
(a) Borrower or any Guarantor is in default under the terms of this Agreement
or any of the Related Documents or any other agreement that Borrower or any
Guarantor has with Lender; (b) Borrower or any Guarantor becomes insolvent,
files a petition in bankruptcy or similar proceedings, or is adjudged a
bankrupt; (c) there occurs a material adverse change in Borrower's financial
condition, in the financial condition of any Guarantor, or in the value of any
Collateral securing any Loan which would cause Lender to reasonably doubt
Borrower's ability to satisfy its obligations under this agreement; or (d) any
Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such
Guarantor's guaranty of the Loan or any other loan with Lender.

LOAN ADVANCES. Lender, in its discretion, will make loans to Borrower, in
amounts determined by lender, up to the amounts as defined and permitted in
this Agreement and the Related Documents, including, but not limited to, any
Promissory Notes, executed by Borrower (the "Credit Limit"). Borrower is
responsible for monitoring the total amount of Loans and Indebtedness
outstanding from time to time, and Borrower shall not permit the same, at any
time to exceed the Credit Limit. If at any time the total of all outstanding
Loan and Indebtedness exceeds the Credit Limit, Borrower shall immediately pay
the amount of the excess to Lender, without notice or demand. Notwithstanding
the terms and conditions as set forth in this Agreement, the sum of (a) the
outstanding principal balance under Borrower's line of credit facility plus (b)
the outstanding letters of credit (including drawn by unreimbursed letters of
credit) plus (c) the Foreign Exchange Reserve plus (d) the Cash Management
Services shall not exceed at any one time $15,000,000.00.

LETTERS OF CREDIT. Subject to the terms and conditions of this Agreement,
Lender agrees to issue or cause to be issued letters of credit for the account
of Borrower in an aggregate face amount not to exceed (i) $15,000,000.00 minus
(ii) the then outstanding principal balance of the Note; provided that the face
amount of outstanding letters of credit (including drawn but unreimbursed
letters of credit) shall not in any case exceed Fifteen Million and 00/100
Dollars ($15,000,000.00). Each such letter of credit shall have an expiry date
no later than one hundred eighty (180) days after the maturity date of
Borrower's line of credit facility provided that Borrower's letter of credit
reimbursement obligation shall be secured by cash on terms acceptable to Lender
in its sole discretion and shall be subject to the terms and conditions of
Lender's form of application and letter of credit agreement.

Borrower shall indemnify, defend and hold Lender harmless from any loss, cost,
expense or liability, including, without limitation, reasonable attorneys'
fees, arising out of or in connection with any letters of credit.

Borrower may request that Lender issue a letter of credit payable in a currency
other than United States dollars. If a demand for payment is made under any
such letter of credit, Lender shall treat such demand as an Advance to Borrower
of the equivalent of the amount thereof (plus cable charges) in United States
currency at the then prevailing rate of exchange in San Francisco, California,
for sales of that other currency for cable transfer to the country of which it
is the currency.

Upon the issuance of any letter of credit payable in a currency other than
United States Dollars, Lender shall create a reserve (the "Letter of Credit
Reserve") under the line of credit facility for Letters of Credits against
fluctuations in currency exchange rates, in an amount equal to ten percent
(10%) of the face amount of such letter of credit. The amount of such reserve
may be amended by Lender from time to time to account for fluctuations in the
exchange rate. The availability of funds under the line of credit facility
shall be reduced by the amount of such reserve for so long as such letter of
credit remains outstanding.

FOREIGN EXCHANGE SUBLIMIT. Subject to the terms of this Agreement, as amended
from time to time, Borrower may utilize up to $15,000,000.00 for spot and
future foreign exchange contracts (the "Exchange Contracts"). Borrower shall
not request an Exchange Contract at any time it is not in compliance with any
of the terms of this Agreement. All Exchange Contracts must provide for
delivery of settlement on or before the maturity date of the line of credit
facility. The limit available at any time shall be reduced by the following
amounts (the "Foreign Exchange Reserve") on each day (the "Determination
Date"): (i) on all outstanding Exchange Contracts on which delivery is to be
effected or settlement allowed more than two business days from the
Determination Date, 10% of the gross amount of the Exchange Contracts; plus
(ii) on all outstanding Exchange Contracts on which delivery is to be effected
or settlement allowed within two business days after the Determination Date,
100% of the gross amount of the Exchange Contracts. In lieu of the Foreign
Exchange Reserve for 100% of the gross amount of any Exchange Contract, the
Borrower may request that Lender debit Borrower's bank account with Lender for
such amount, provided Borrower has immediately available funds in such amounts
in its bank account.

Lender may, in its discretion, terminate the Exchange Contracts at any time (a)
that an Event of Default occurs or (b) that there is not sufficient
availability under the line of credit facility and Borrower does not have
available funds in its bank account to satisfy the Foreign Exchange Reserve. If
Lender terminates the Exchange Contracts, and without limitation of the FX
Indemnity Provisions (as referred to below), Borrower agrees to reimburse
Lender for any and all fees, costs and expenses relating thereto or arising in
connection therewith.

Borrower shall not permit the total gross amount of all Exchange Contracts on
which delivery is to be effected and settlement allowed in any two business day
period to be more than $15,000,000.00 nor shall Borrower permit the total gross
amount of all Exchange Contracts to which Borrower is a party, outstanding at
any one time, to exceed $15,000,000.00.
<PAGE>   6
                  AMENDED AND RESTATED BUSINESS LOAN AGREEMENT
                                     PAGE 6


Borrower shall execute all standard form applications and agreements of Lender
in connection with the Exchange Contracts, and without limiting any of the
terms of such applications and agreements, Borrower will pay all standard fees
and charges of Lender in connection with the Exchange Contracts.

Without limiting any of the other terms of this Agreement or any such standard
form applications and agreement of Lender, Borrower agrees to indemnify Lender
and hold it harmless, from and against any and all claims, debts, liabilities,
demands, obligations, actions, costs and expenses (including, without
limitation, attorneys' fees of counsel of Lender's choice), of every nature and
description which it may sustain or incur, based upon, arising out of, or in
any way relating to any of the Exchange Contracts or any transactions relating
thereto or contemplated thereby (collectively referred to as the "FX Indemnity
Provisions").

CASH MANAGEMENT SUBLIMIT. Borrower may utilize up to an aggregate amount not to
exceed $15,000,000.00 for Cash Management Services provided by Lender, which
services may include merchant services, PC-ACH, direct deposit of payroll,
Business Credit Card, and other related check cashing services as defined in
that certain Cash Management Services Agreement provided to Borrower in
connection herewith (a"Cash Management Service", or the "Cash Management
Services"). All amounts actually paid by Lender in respect of a Cash Management
Service or Cash Management Services shall, when paid, constitute an Advance
under the line of credit facility.

EVENTS OF DEFAULT. Each of the following shall constitute an Event of Default
under this Agreement:

     Default on Indebtedness. Failure of Borrower to make any payment when due
     on the Loans.

     Other Defaults. Failure of Borrower or any Grantor to comply with or to
     perform when due any other term, obligation, covenant or condition
     contained in this Agreement or in any of the Related Documents, or failure
     of Borrower to comply with or to perform any other term, obligation,
     covenant or condition contained in any other agreement between Lender and
     Borrower.

     Default in Favor of Third Parties. Should borrower or any Grantor default
     under any loan, extension of credit, security agreement, purchase or sales
     agreement, or any other agreement, in favor of any other creditor or person
     that may materially affect any of Borrower's property or Borrower's or any
     Grantor's ability to repay the Loans or perform their respective
     obligations under this Agreement or any of the Related Documents.

     False Statements. Any warranty, representation or statement made or
     furnished to Lender by or on behalf of Borrower or any Grantor under this
     Agreement or the Related Documents is false or misleading in any material
     respect at the time made or furnished, or becomes false or misleading at
     any time thereafter.

     Insolvency. The dissolution or termination of Borrower's existence as a
     going business, the insolvency of Borrower, the appointment of a receiver
     for any part of Borrower's property, any assignment for the benefit of
     creditors, any type of creditor workout, or the commencement of any
     proceeding under any bankruptcy or insolvency laws by or against Borrower.

     Creditor or Forfeiture Proceedings. Commencement of foreclosure or
     forfeiture proceedings, whether by judicial proceeding, self-help,
     repossession or any other method, by any creditor or Borrower, any creditor
     of any Grantor against any collateral securing the Indebtedness, or by any
     governmental agency. This includes a garnishment, attachment, or levy on or
     of any of Borrower's deposit accounts with Lender.

     Events Affecting Guarantor. Any of the preceding events occurs with respect
     to any Guarantor of nay of the Indebtedness or any Guarantor dies or
     becomes incompetent, or revokes or disputes the validity of, liability
     under, any Guaranty of the Indebtedness.

     Change in Ownership. Any change in ownership of twenty-five percent (25%)
     or more of the common stock of Borrower.

     Adverse Change. A material adverse change occurs in Borrower's financial
     condition, or Lender believes the prospect of payment or performance of the
     Indebtedness is impaired.

EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except
where otherwise provided in this Agreement or the Related Documents, all
commitments and obligations of Lender under this Agreement or the Related
Documents or any other agreement immediately will terminate (including any
obligation to make Loan Advances or disbursements), and, at Lender's option all
Indebtedness immediately will become due and payable, all without notice of any
kind to Borrower, except that in the case of an Event of Default of the type
described in the "Insolvency" subsection above, such acceleration shall be
automatic and not optional. In addition, Lender shall have all the rights and
remedies provided in the Related Documents or available at Law, in equity, or
otherwise. Except as may be prohibited by applicable law, all of Lender's
rights and remedies shall be cumulative any may be exercised singularly or
concurrently. Election by Lender to pursue any remedy shall not exclude pursuit
of any other remedy, and an election to make expenditures or to take action to
perform an obligation of Borrower or of any Grantor shall not affect Lender's
right to declare a default and to exercise its rights and remedies.

DEFAULT RATE. Following an Event of Default, including failure to pay upon final
maturity, Lender, at its option, may do one or both of the following: (a)
increase the variable interest rate on the Note to five percentage points
(5.000%) over the otherwise effective interest rate payable thereunder, and (b)
add any unpaid accrued interest to principal and such sum will bear interest
therefrom until paid at the interest rate provided in the Note.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Agreement:

     Amendments. This Amendment, together with any Related Documents,
     constitutes the entire understanding and agreement of the parties as to the
     matters set forth in this Agreement. No alteration of or amendment to this
     Agreement shall be effective unless given in writing and signed by the
     party or parties sought to be charged or bound by the alteration or
     amendment.

     Amendment and Restatement. This Amended and Restated Business Loan
     Agreement amends and restates the terms and conditions of that certain
     Business Loan Agreement dated January 4, 1993, as amended.

     Applicable Law. This Agreement has been delivered to Lender and accepted by
     Lender in the State of California. If there is a lawsuit, Borrower agrees
     upon Lender's request to submit to the jurisdiction of the courts of Santa
     Clara County, the State of California. Lender and Borrower hereby waive the
     right to any jury trial in any action, proceeding, or counterclaim brought
     by either Lender or Borrower against the
<PAGE>   7
                  AMENDED AND RESTATED BUSINESS LOAN AGREEMENT
                                     PAGE 7

other. (Initial Here [INITIALS] ) This Agreement shall be governed by and
                     ----------
construed in accordance with the laws of the State of California.

CAPTION HEADINGS. Caption headings in this Agreement are for convenience
purposes only and are not to be used to interpret or define the provisions of
this Agreement.

MULTIPLE PARTIES; CORPORATE AUTHORITY. All obligations of Borrower under this
Agreement shall be joint and several, and all references to Borrower shall mean
each and every Borrower. This means that each of the persons signing below is
responsible for all obligations in this Agreement.

CONSENT TO LOAN PARTICIPATION. Borrower agrees and consents to Lender's sale or
transfer, whether now or later, of one or more participation interests in the
Loans to one or more purchasers, whether related or unrelated to Lender. Lender
may provide, without any limitation whatsoever, to any one or more purchasers,
or potential purchasers, any information or knowledge Lender may have about
Borrower or about any other matter relating to the Loan, and Borrower hereby
waives any rights to privacy it may have with respect to such matters. Borrower
additionally waives any and all notices of sale of participation interests, as
well as all notices of any repurchase of such participation interests. Borrower
also agrees that the purchasers of any such participation interests will be
considered as the absolute owners of such interests in the Loans and will have
all the rights granted under the participation agreement or agreements
governing the sale of such participation interests. Borrower further waives all
rights of offset or counterclaim that it may have now or later against Lender
or against any purchaser of such a participation interest and unconditionally
agrees that either Lender or such purchaser may enforce Borrower's obligation
under the Loans irrespective of the failure or insolvency of any holder of any
interest in the Loans. Borrower further agrees that the purchaser of any such
participation interests may enforce its interests irrespective of any personal
claims or defenses that Borrower may have against Lender.

BORROWER INFORMATION. Borrower consents to the release of information on or
about Borrower by Lender in accordance with any court order, law or regulation
and in response to credit inquiries concerning Borrower.

NON-LIABILITY OF LENDER. The relationship between Borrower and Lender is a
debtor and creditor relationship and not fiduciary in nature, nor is the
relationship to be construed as creating any partnership or joint venture
between Lender and Borrower. Borrower is exercising its own judgment with
respect to Borrower's business. All information supplied to Lender is for
Lender's protection only and no other party is entitled to rely on such
information. There is no duty for Lender to review, inspect, supervise, or
inform Borrower of any matter with respect to Borrower's business. Lender and
Borrower intend that Lender may reasonably rely on all information supplied by
Borrower to Lender, together with all representations and warranties given by
Borrower to Lender, without investigation or confirmation by lender and that
any investigation or failure to investigate will not diminish Lender's right to
so rely.

NOTICE OF LENDER'S BREACH. Borrower must notify Lender in writing of any breach
of this Agreement or the Related Documents by Lender and any other claim, cause
of action or offset against Lender within thirty (30) days after the occurrence
of such breach or after the accrual of such claim, cause of action or offset.
Borrower waives any claim, cause of action or offset for which notice is not
given in accordance with this paragraph. Lender is entitled to rely on any
failure to give such notice.

BORROWER INDEMNIFICATION. Borrower shall indemnify and hold Lender harmless
from and against all claims, costs, expenses, losses, damages, and liabilities
of any kind, including but not limited to attorneys' fees and expenses, arising
out of any matter relating directly or indirectly to the Indebtedness, whether
resulting from internal disputes of the Borrower, disputes between Borrower and
any Guarantor, or whether involving any third parties, or out of any other
matter whatsoever related to this Agreement or the Related Documents, but
excluding any claim or liability which arises as a direct result of Lender's
gross negligence or willful misconduct. The indemnity shall survive full
repayment and satisfaction of the Indebtedness and termination of this
Agreement.

COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of
which, when so executed, shall be deemed an original, but all such
counterparts, taken together, shall constitute one and the same Agreement.

COSTS AND EXPENSES. Borrower agrees to pay upon demand all of Lender's
expenses, including without limitation attorneys' fees, incurred in connection
with the preparation, execution, enforcement, modification and collection of
this Agreement or in connection with the Loans made pursuant to this Agreement,
if Borrower is in default with any term or condition of this agreement. Lender
may pay someone else to help collect the Loans and to enforce this Agreement,
and Borrower will pay that amount. This includes, subject to any limits under
applicable law, Lender's attorneys' fees and Lender's legal expenses, whether
or not there is a lawsuit, including attorneys' fees for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services. Borrower also
will pay any court costs, in addition to all other sums provided by law.

NOTICES. All notices required to be given under this Agreement shall be given
in writing, may be sent by telefacsimile, and shall be effective when actually
delivered or when deposited with a nationally recognized overnight courier or
deposited in the United States mail, first class, postage prepaid, addressed to
the party to whom the notice is to be given at the address shown above. Any
party may change its address for notices under this Agreement by giving formal
written notice to the other parties, specifying that the purpose of the notice
is to change the party's address. To the extent permitted by applicable law, if
there is more than one Borrower, notice to any Borrower will constitute notice
to all Borrowers. For notice purposes, Borrower will keep Lender informed at
all times of Borrower's current address(es).

SEVERABILITY. If a court of competent jurisdiction finds any provision of this
Agreement to be invalid or unenforceable as to any person or circumstance, such
finding shall not render that provision invalid or unenforceable as to any
other persons or circumstances. If feasible, any such offending provision shall
be deemed to be modified to be within the limits of enforceability or validity;
however, if the offending provision cannot be so modified, it shall be stricken
and all other provisions of this Agreement in all other respects shall remain
valid and enforceable.

SUBSIDIARIES AND AFFILIATES OF BORROWER. To the extent the context of any
provisions of this Agreement makes it appropriate, including without limitation
any representation, warranty or covenant, the word "Borrower" as used herein
shall include all subsidiaries and affiliates of Borrower. Notwithstanding the
foregoing however, under no circumstances shall this Agreement be construed to
require Lender to make any Loan or other financial accommodation to any
subsidiary or affiliate of Borrower.
<PAGE>   8

                  AMENDED AND RESTATED BUSINESS LOAN AGREEMENT
                                     PAGE 8

   Successors and Assigns. All covenants and agreements contained by or on
   behalf of Borrower shall bind its successors and assigns and shall inure to
   the benefit of Lender, its successors and assigns. Borrower shall not,
   however, have the right to assign its rights under this Agreement or any
   interest therein, without the prior written consent of Lender.

   Survival. All warranties, representations, and covenants made by Borrower in
   this Agreement or in any certificate or other instrument delivered by
   Borrower to Lender under this Agreement shall be considered to have been
   relied upon by Lender and will survive the making of the Loan and delivery to
   Lender of the Related Documents, regardless of any investigation made by
   Lender or on Lender's behalf.

   Time is of the Essence. Time is of the essence in the performance of this
   Agreement.

   Waiver. Lender shall not be deemed to have waived any rights under this
   Agreement unless such waiver is given in writing and signed by Lender. No
   delay or omission on the part of Lender in exercising any right shall
   operate as a waiver of such right or any other right. A waiver by Lender of a
   provision of this Agreement shall not prejudice or constitute a waiver of
   Lender's right otherwise to demand strict compliance with that provision or
   any other provision of this Agreement. No prior waiver by Lender, nor any
   course of dealing between Lender and Borrower, or between Lender and any
   Grantor, shall constitute a waiver of any of Lender's rights or of any
   obligations of Borrower or of any Grantor as to any future transactions.
   Whenever the consent of Lender is required under this Agreement, the granting
   of such consent by Lender in any instance shall not constitute continuing
   consent in subsequent instances where such consent is required, and in all
   cases such consent may be granted or withheld in the sole discretion of
   Lender.

BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AMENDED AND
RESTATED BUSINESS LOAN AGREEMENT, AND BORROWER AGREES TO ITS TERMS. THIS
AGREEMENT IS DATED AS OF JUNE 15, 1997.


BORROWER:
Remedy Corp.


By:     /s/ GEORGE A. de URIOSTE
   ------------------------------------------
Name:   George a. de Urioste
     ----------------------------------------
Title:  Vice President, Finance and
      ---------------------------------------
        Chief Financial Officer
      ---------------------------------------



LENDER:
Silicon Valley Bank


By:     /s/ COLLEEN ATKINSON
   ------------------------------------------
Name:   Colleen Atkinson
     ----------------------------------------
Title:  Vice President
      ---------------------------------------