Document:

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                                                                    EXHIBIT 10.3

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                AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
                                 WEBRIDGE, INC.

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                               TABLE OF CONTENTS

<TABLE>
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<S>  <C>    <C>                                                                     <C>
 1   ACCOUNTING AND OTHER TERMS ...................................................   4

 2   LOAN AND TERMS OF PAYMENT ....................................................   4
     2.1    Credit Extensions .....................................................   4
     2.2    Overadvances ..........................................................   5
     2.3    Interest Rate, Payments ...............................................   5
     2.4    Fees ..................................................................   5

 3   CONDITIONS OF LOANS ..........................................................   6
     3.1    Conditions Precedent to Initial Credit Extension ......................   6
     3.2    Conditions Precedent to all Credit Extensions .........................   6

 4   CREATION OF SECURITY INTEREST ................................................   6
     4.1    Grant of Security Interest ............................................   6

 5   REPRESENTATIONS AND WARRANTIES ...............................................   6
     5.1    Due Organization and Authorization ....................................   6
     5.2    Collateral ............................................................   7
     5.3    Litigation ............................................................   7
     5.4    No Material Adverse Change in Financial Statements ....................   7
     5.5    Solvency ..............................................................   7
     5.6    Regulatory Compliance .................................................   7
     5.7    Subsidiaries ..........................................................   8
     5.8    Full Disclosure .......................................................   8

 6   AFFIRMATIVE COVENANTS ........................................................   8
     6.1    Governmental Compliance ...............................................   8
     6.2    Financial Statements, Reports, Certification ..........................   8
     6.3    Inventory; Returns ....................................................   9
     6.4    Taxes .................................................................   9
     6.5    Insurance .............................................................   9
     6.6    Primary Accounts ......................................................   9
     6.7    Financial Covenants ...................................................  10
     6.8    Registration of Intellectual Property Rights ..........................  10
     6.9    Further Assurances ....................................................  10

 7   NEGATIVE COVENANTS ...........................................................  10
     7.1    Dispositions ..........................................................  10
     7.2    Changes in Business, Ownership, Management or Business Locations ......  10
     7.3    Mergers or Acquisitions ...............................................  10
     7.4    Indebtedness ..........................................................  11
     7.5    Encumbrances ..........................................................  11
     7.6    Distributions; Investments ............................................  11
     7.7    Transactions with Affiliates ..........................................  11
     7.8    Subordinated Debt .....................................................  11
     7.9    Compliance ............................................................  11

 8   EVENTS OF DEFAULT ............................................................  11
     8.1    Payment Default .......................................................  12
     8.2    Covenant Default ......................................................  12
     8.3    Material Adverse Change ...............................................  12
</TABLE>

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<TABLE>
<S>  <C>    <C>                                                                     <C>
     8.4    Attachment ...........................................................   12
     8.5    Insolvency ...........................................................   12
     8.6    Other Agreements .....................................................   12
     8.7    Judgments ............................................................   12
     8.8    Misrepresentations ...................................................   13

 9   BANK'S RIGHTS AND REMEDIES ..................................................   13
     9.1    Rights and Remedies ..................................................   13
     9.2    Power of Attorney ....................................................   13
     9.3    Accounts Collection ..................................................   14
     9.4    Bank Expenses ........................................................   14
     9.5    Bank's Liability for Collateral ......................................   14
     9.6    Remedies Cumulative ..................................................   14
     9.7    Demand Waiver ........................................................   14

10   NOTICES .....................................................................   14

11   CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER ..................................   15

12   GENERAL PROVISIONS ..........................................................   15
     12.1   Successors and Assigns ...............................................   15
     12.2   Indemnification ......................................................   15
     12.3   Time of Essence ......................................................   15
     12.4   Severability of Provision ............................................   15
     12.5   Amendments in Writing, Integration ...................................   15
     12.6   Counterparts .........................................................   16
     12.7   Survival .............................................................   16
     12.8   Confidentiality ......................................................   16
     12.9   Effect of Amendment and Restatement ..................................   16
     12.10  Attorneys' Fees, Costs and Expenses ..................................   16

13   DEFINITIONS .................................................................   16
     13.1   Definitions ..........................................................   16
</TABLE>

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          This AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT is dated August
25, 1999, between SILICON VALLEY BANK ("Bank"), whose address is 3003 Tasman
Drive, Santa Clara, California 95054 with a loan production office located at
11000 SW Stratus. Sts. 170, Beaverton, Oregon 97008-7113 and WEBRIDGE, INC.
("Borrower"), whose address is 225 SW Broadway, Suite 600, Portland, Oregon
97205.

                                    RECITALS

     A.   Bank and Borrower are parties to that certain QuickStart Loan and
Security Agreement (together with all Schedules attached thereto), dated
December 29, 1997, as amended (collectively, the "Original Agreement").

     B.   Borrower and Bank desire in this Agreement to set forth their
agreement with respect to a working capital and term loan and to amend and
restate in its entirety without novation the Original Agreement in accordance
with the provisions herein.

                                   AGREEMENT

          The parties agree as follows:

1         ACCOUNTING AND OTHER TERMS

          Accounting terms not defined in this Agreement will be construed
following GAAP. Calculations and determinations must be made following GAAP. The
term "financial statements" includes the notes and schedules. The terms
"including" and "includes" always mean "including (or includes) without
limitation," in this or any Loan Document. This Agreement shall be construed to
impart upon Bank a duty to act reasonably at all times.

2         LOAN AND TERMS OF PAYMENT

2.1       Credit Extensions.

          Borrower will pay Bank the unpaid principal amount of all Credit
Extensions and interest on the unpaid principal amount of the Credit Extensions.

2.1.1     Revolving Advances.

          (a)  Bank will make Advances not exceeding (i) the lesser of (A) the
Committed Revolving Line or (B) the Borrowing Base, minus (ii) the amount of
all outstanding Letters of Credit (including drawn but unreimbursed Letters of
Credit). Amounts borrowed under this Section may be repaid and reborrowed
during the term of this Agreement.

          (b)  To obtain an Advance, Borrower must notify Bank by facsimile or
telephone by 3:00 p.m. Pacific time on the Business Day the Advance is to be
made. Borrower must promptly confirm the notification by delivering to Bank the
Payment/Advance Form attached as Exhibit B. Bank will credit Advances to
Borrower's deposit account. Bank may make Advances under this Agreement based on
instructions from a Responsible Officer or his or her designee or without
instructions if the Advances are necessary to meet Obligations which have become
due. Bank may rely on any telephone notice given by a person whom Bank believes
is a Responsible Officer or designee. Borrower will indemnify Bank for any loss
Bank suffers due to such reliance.

          (c)  The Committed Revolving Line terminates on the Revolving
Maturity Date, when all Advances are immediately payable.

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2.1.2 Letters of Credit.

      Bank will issue or have issued Letters of Credit for Borrower's account
not exceeding (i) the lesser of the Committed Revolving Line or the Borrowing
Base minus (ii) the outstanding principal balance of the Advances; however, the
face amount of outstanding Letters of Credit (including drawn but unreimbursed
Letters of Credit) may not exceed $500,000. Each Letter of Credit will have an
expiry date of no later than 180 days after the Revolving Maturity Date, but
Borrower's reimbursement obligation will be secured by cash on terms
acceptable to Bank at any time after the Revolving Maturity Date if the term of
this Agreement is not extended by Bank. Borrower agrees to execute any further
documentation in connection with the Letters of Credit as Bank may reasonably
request.

2.1.3 Term Loan.

      (a) Bank had previously made a Term Loan available to Borrower pursuant
to the Original Agreement.

      (b) Borrower will continue to pay the remaining 17 equal installments of
principal, plus accrued interest (each, a "Term Loan Payment"). Each Term Loan
Payment is payable on the 28th of each month during the term of the loan, with
the next Term Loan Payment due on July 28, 1999. Borrower's final Term Loan
Payment, due on December 25, 2000, includes all outstanding Term Loan principal
and accrued interest.

2.2 Overadvances.

      If Borrower's Obligations under Section 2.1.1 and 2.1.2 exceed the lesser
of either (i) the Committed Revolving Line or (ii) the Borrowing Base, Borrower
must immediately pay Bank the excess.

2.3 Interest Rate, Payments.

      (a) Interest Rate. (i) Advances accrue interest on the outstanding
principal balance at a per annum rate of 1 percentage point above the Prime
Rate; and (ii) the Term Loan accrues interest at a per annum rate of 1
percentage point above the Prime Rate. After an Event of Default, Obligations
accrue interest at 5 percent above the rate effective immediately before the
Event of Default. The interest rate increases or decreases when the Prime Rate
changes. Interest is computed on a 360 day year for the actual number of days
elapsed.

      (b) Payments. Interest due on the Committed Revolving Line is payable on
the 7th of each month. Bank may debit any of Borrower's deposit accounts
including Account Number 3300067716 for principal and interest payments owing or
any amounts Borrower owes Bank. Bank will promptly notify Borrower when it
debits Borrower's accounts. These debits are not a set-off. Payments received
after 12:00 noon Pacific time are considered received at the opening of business
on the next Business Day. When a payment is due on a day that is not a Business
Day, the payment is due the next Business Day and additional fees or interest
accrue.

2.4 Fees.

      Borrower will pay:

      (a) Facility Fee. A fully earned, non-refundable Facility Fee of $5,000
for the Committed Revolving Line due on the Closing Date; and a fully-earned,
non-refundable Increase Fee of $1,250 due upon Borrower's availability of the
Increase Amount; and

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     (b)  Bank Expenses. All Bank Expenses (including reasonable attorneys fees
and reasonable expenses) incurred through and after the date of this Agreement,
are payable when due.

3    CONDITIONS OF LOANS

3.1  Conditions Precedent to Initial Credit Extension.

     Bank's obligation to make the Initial Credit Extension is subject to the
condition precedent that it receive the agreements, documents and fees it
requires; and

     Bank's receipt and satisfactory review of results from the initial audit of
Borrower's Collateral.

     Bank's receipt of evidence of Borrower's application provided to the U.S.
Copyright Office listing copyrights to be filed with such office.

3.2  Conditions Precedent to all Credit Extensions.

     Bank's obligations to make each Credit Extension, including the Initial
Credit Extension, is subject to the following:

     (a)  timely receipt of any Payment/Advance Form; and

     (b)  the representations and warranties in Section 5 must be materially
true on the date of the Payment/Advance Form and on the effective date of each
Credit Extension and no Event of Default may have occurred and be continuing, or
result from the Credit Extension. Each Credit Extension is Borrower's
representation and warranty on that date that the representations and warranties
of Section 5 remain true.

4    CREATION OF SECURITY INTEREST

4.1  Grant of Security Interest.

     Borrower grants Bank a continuing security interest in all presently
existing and later acquired Collateral to secure all Obligations and performance
of each of Borrower's duties under the Loan Documents. Except for Permitted
Liens, any security interest will be a first priority security interest in the
Collateral. Bank may place a "hold" on any deposit account pledged as
Collateral. If this Agreement is terminated, Bank's lien and security interest
in the Collateral will continue until Borrower fully satisfies its Obligations.

5    REPRESENTATIONS AND WARRANTIES

     Borrower represents and warrants as follows:

5.1  Due Organization and Authorization.

     Borrower and each Subsidiary is duly existing and in good standing in its
state of formation and qualified and licensed to do business in, and in good
standing in, any state in which the conduct of its business or its ownership of
property requires that it be qualified, except where the failure to do so could
not reasonably be expected to cause a Material Adverse Change.

     The execution, delivery and performance of the Loan Documents have been
duly authorized, and do not conflict with Borrower's formation documents, nor
constitute an event of default under any material agreement by which Borrower is
bound. Borrower is not in default

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under any agreement to which or by which it is bound in which the default could
cause reasonably be expected to cause a Material Adverse Change.

5.2     Collateral.

        Borrower has good title to the Collateral, free of Liens except
Permitted Liens. The Accounts are bona fide, existing obligations, and the
service or property has been performed or delivered to the account debtor or
its agent for immediate shipment to and unconditional acceptance by the account
debtor. Borrower has no notice of any actual or imminent Insolvency Proceeding
of any account debtor whose accounts are an Eligible Account in any Borrowing
Base Certificate. All inventory is in all material respects of good and
marketable quality, free from material defects. Borrower is the sole owner of
the Intellectual Property, except for non-exclusive licenses granted to its
customers in the ordinary course of business. Each Patent is valid and
enforceable and no part of the Intellectual Property has been judged invalid or
unenforceable, in whole or in part, and no claim has been made that any of the
Intellectual Property violates the rights of any third party, except to the
extent such claim could not reasonably be expected to cause a Material Adverse
Change.

5.3     Litigation.

        Except as shown in the Schedule, there are no actions or proceedings
pending or, to the knowledge of Borrower's Responsible Officers and legal
counsel, threatened by or against Borrower or any Subsidiary in which a likely
adverse decision could reasonably be expected to cause a Material Adverse
Change.

5.4     No Material Adverse Change in Financial Statements.

        All consolidated financial statements for Borrower, and any Subsidiary,
delivered to Bank fairly present in all material respects Borrower's
consolidated financial condition and Borrower's consolidated results of
operations. There has not been any material deterioration in Borrower's
consolidated financial condition since the date of the most recent financial
statements submitted to Bank.

5.5     Solvency.

        The fair salable value of Borrower's assets (including goodwill minus
disposition costs) exceeds the fair value of its liabilities; the Borrower is
not left with unreasonably small capital after the transactions in this
Agreement; and the Borrower is able to pay its debts (including trade debts) as
they mature.

5.6     Regulatory Compliance.

        Borrower is not an "investment company" or a company "controlled" by an
"investment company" under the Investment Company Act. Borrower is not engaged
as one of its important activities in extending credit for margin stock (under
Regulations T and U of the Federal Reserve Board of Governors). Borrower has
complied in all material respects with the Federal Fair Labor Standards Act.
Borrower has not violated any laws, ordinances or rules, the violation of which
could reasonably be expected to cause a Material Adverse Change. None of
Borrower's or any Subsidiary's properties or assets has been used by Borrower
or any Subsidiary or, to the best of Borrower's knowledge, by previous Persons,
in disposing, producing, storing, treating, or transporting any hazardous
substances other than legally. Borrower and each Subsidiary has timely filed
all required tax returns and paid, or made adequate provision to pay, all
material taxes, except those being contested in good faith with adequate
reserves under GAAP. Borrower and each Subsidiary has obtained all consents,
approvals and authorizations of, made all declarations or filings with, and
given all notices to all government authorities that are necessary

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to continue its business as currently conducted, except where the failure to do
so could not reasonably be expected to cause a Material Adverse Change.

5.7     Subsidiaries.

        Borrower does not own any stock, partnership interest or other equity
securities except for Permitted Investments.

5.8     Full Disclosure.

        No written representation, warranty or other statement of Borrower in
any certificate or written statement given to Bank (taken together with all
such written certificates and written statements to Bank) contains any untrue
statement of a material fact or omits to state a material fact necessary to
make the statements contained in the certificates or statements not misleading,
if being recognized by Bank that the projections and forecasts provided by
Borrower in good faith and based upon reasonable assumptions are not viewed as
facts and that actual results during the period or periods covered by such
projections and forecasts may differ from the projected and forecasted results.

6       AFFIRMATIVE COVENANTS

        Borrower will do all of the following:

6.1     Government Compliance.

        Borrower will maintain its and all Subsidiaries' legal existence and
good standing in its jurisdiction of formation and maintain qualification in
each jurisdiction in which the failure to so qualify would reasonably be
expected to cause a material adverse effect on Borrower's business or
operations. Borrower will comply, and have each Subsidiary comply, with all
laws, ordinances and regulations to which it is subject, noncompliance with
which could have a material adverse effect on Borrower's business or operations
or would reasonably be expected to cause a Material Adverse Change.

6.2     Financial Statements, Reports, Certificates.

        (a) Borrower will deliver to Bank: (i) as soon as available, but no
later than 30 days after the last day of each month, a company prepared
consolidated balance sheet and income statement covering Borrower's
consolidated operations during the period, in a form and certified by a
Responsible Officer acceptable to Bank; (ii) as soon as available, but no later
than 120 days after the last day of Borrower's fiscal year, audited
consolidated financial statements prepared under GAAP, consistently applied,
together with an unqualified opinion on the financial statements from an
independent certified public accounting firm reasonably acceptable to Bank;
(iii) a prompt report of any legal actions pending or threatened against
Borrower or any Subsidiary that could result in damages or costs to Borrower or
any Subsidiary of $100,000 or more;(iv) budgets, sales projections, operating
plans or other financial information Bank requests; and (v) prompt notice of any
material change in the composition of the Intellectual Property, including any
subsequent ownership right of Borrower in or to any Copyright, Patent or
Trademark not shown in any intellectual property security agreement between
Borrower and Bank or knowledge of an event that materially adversely affects
the value of the Intellectual Property.

        (b) At such time as there are outstanding Advances and prior to the
initial Advance, within 20 days after the last day of each month, Borrower will
deliver to Bank a Borrowing Base Certificate signed by a Responsible Officer in
the form of Exhibit C, with aged listings of accounts receivable and accounts
payable.

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     (c) Within 30 days after the last day of each month in which an Advance
was requested, Borrower will deliver to Bank a Compliance Certificate signed by
a Responsible Officer in the form of Exhibit D.

     (d) Bank has the right to audit Borrower's Collateral at Borrower's
expense, but the audits will be conducted no more often than every year unless
an Event of Default has occurred and is continuing. Notwithstanding the
foregoing, an initial audit of Borrower's Collateral will be conducted at
Borrower's expense, prior to the initial Credit Extension.

6.3  INVENTORY; RETURNS.

     Borrower will keep all inventory in good and marketable condition, free
from material defects. Returns and allowances between Borrower and its account
debtors will follow Borrower's customary practices as they exist at execution
of this Agreement. Borrower must promptly notify Bank of all returns,
recoveries, disputes and claims, that involve more than $50,000.

6.4  TAXES.

     Borrower will make, and cause each Subsidiary to make, timely payment of
all material federal, state, and local taxes or assessments and will deliver to
Bank, on demand, appropriate certificates attesting to the payment.

6.5  INSURANCE.

     Borrower will keep the business and the Collateral insured for risks and
in amounts, as Bank may reasonably request. Insurance policies will be in a
form, with companies, and in amounts that are satisfactory to Bank. All
property policies will have a lender's loss payable endorsement showing Bank as
an additional loss payee and all liability policies will show the Bank as an
additional insured and provide that the insurer must give Bank at least 20 days
notice before canceling its policy. At Bank's request, Borrower will deliver
certified copies of policies and evidence of all premium payments. Proceeds
payable under any policy will, at Bank's option, be payable to Bank on account
of the Obligations. Statutory notice regarding insurance:

                                    WARNING

     Unless you provide us with evidence of the insurance coverage as required
by our contract or loan agreement, we may purchase insurance at your expense to
protect our interest. This insurance may, but need not, also protect your
interest. If the collateral becomes damaged, the coverage we purchase may not
pay any claim you make or any claim made against you. You may later cancel this
coverage by providing evidence that you have obtained property coverage
elsewhere.

     You are responsible for the cost of any insurance purchased by us. The
cost of this insurance may be added to your contract or loan balance. If the
cost is added to your contract or loan balance, the interest rate on the
underlying contract or loan will apply to this added amount. The effective date
of coverage may be the date your prior coverage lapsed or the date you failed
to provide proof of coverage.

     This coverage we purchased may be considerably more expensive than
insurance you can obtain on your own and may not satisfy any need for property
damage coverage or any mandatory liability insurance requirements imposed by
applicable law.

6.6  PRIMARY ACCOUNTS.

     Borrower will maintain its primary depository and operating accounts with
Bank.

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6.7  Financial Covenants.

     Borrower will maintain as of the last day of each month:

          (i)   Quick Ratio (Adjusted). A ratio of Quick Assets to Current
Liabilities minus the current portion of Deferred Maintenance Revenue of at
least 1.50 to 1.00.

          (ii)  Debt/Tangible Net Worth Ratio. A ratio of Total Liabilities less
Subordinated Debt to Tangible Net Worth plus Subordinated Debt of not more than
2.00 to 1.00.

          (iii) Tangible Net Worth. A Tangible Net Worth of at least $2,000,000.

6.8  Registration of Intellectual Property Rights.

     Borrower will register with the United States Patent and Trademark Office
or the United States Copyright Office Intellectual Property rights on Exhibits
A, B, C, and D to the Intellectual Property Security Agreement in accordance
with Section 3.1 of this Agreement.

     Borrower will (i) protect, defend and maintain the validity and
enforceability of the Intellectual Property and promptly advise Bank in writing
of material infringements and (ii) not allow any Intellectual Property to be
abandoned, forfeited or dedicated to the public without Bank's written consent.

6.9  Further Assurances.

     Borrower will execute any further instruments and take further action as
Bank reasonably requests to perfect or continue Bank's security interest in the
Collateral or to effect the purposes of this Agreement.

7    NEGATIVE COVENANTS

     Borrower will not do any of the following without Bank's prior written
consent, which will not be unreasonably withheld:

7.1  Dispositions.

     Convey, sell, lease, transfer or otherwise dispose of (collectively
"Transfer"), or permit any of its Subsidiaries to Transfer, all or any part of
its business or property, other than Transfers (i) of inventory in the ordinary
course of business; (ii) of non-exclusive licenses and similar arrangements for
the use of the property of Borrower or its Subsidiaries in the ordinary course
of business; or (iii) of worn-out or obsolete Equipment.

7.2  Changes in Business, Ownership, Management or Business Locations.

     Engage in or permit any of its Subsidiaries to engage in any business other
than the businesses currently engaged in by Borrower or reasonably related
thereto or have a material change in its ownership (other than the sale of
Borrower's equity securities in a public offering or to venture capital
investors approved by Bank) of greater than 25%. Borrower will not, without at
least 30 days prior written notice, relocate its chief executive office or add
any new offices or business locations.

7.3  Mergers or Acquisitions.

     Merge or consolidate, or permit any of its Subsidiaries to merge of
consolidate, with any other Person, or acquire, or permit any of its
Subsidiaries to acquire, all of substantially all of the

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capital stock or promptly of another Person, except where (i) no Event of
Default has occurred and is continuing or would result from such action during
the term of this Agreement and result in a decrease of more than 25% of
Tangible Net Worth. A Subsidiary may merger or consolidate into another
Subsidiary or into Borrower.

7.4  Indebtedness.

     Create, incur, assume, or be liable for any indebtedness, or permit any
Subsidiary to do so, other than Permitted Indebtedness.

7.5  Encumbrances.

     Create, incur, or allow any Lien on any of its property, or assign or
convey any right to receive income, including the sale of any Accounts, or
permit any of its Subsidiaries to do so, except for Permitted Liens, or permit
any Collateral not to be subject to the first priority security interest
granted here, subject to Permitted Liens.

7.6  Distributions; Investments.

     Directly or indirectly acquire or own any Person, or make any investment
in any Person, other than Permitted Investments, or permit any of its
Subsidiaries to do so. Pay and dividends or make any distribution or payment or
redeem, retire or purchase any capital stock, except for repurchases of stock
from former employees of Borrower under the terms of applicable repurchase
agreements in an aggregate amount not to exceed $50,000 in any fiscal year,
provided that no Event of Default has occurred, is continuing or would exist
after giving effect to the repurchases.

7.7  Transactions with Affiliates.

     Directly or indirectly enter or permit any material transaction with any
Affiliate except transactions that are in the ordinary course of Borrower's
business, on terms less favorable to Borrower than would be obtained in an
arm's length transaction with a non-affiliated Person.

7.8  Subordinated Debt.

     Make or permit any payment on any Subordinated Debt, except under the
terms of the Subordinated Debt, or amend any provision in any document relating
to the Subordinated Debt without Bank's prior written consent.

7.9  Compliance.

    Become an "investment company" or a company controlled by an "investment
company," under the Investment Company Act of 1940 or undertake as one of its
important activities extending credit to purchase or carry margin stock, or use
the proceeds of any Credit Extension for that purpose: fails to meet the
minimum funding requirements of ERISA, permit a Reportable Event or Prohibited
Transaction, as defined in ERISA, to occur, fail to comply with the Federal
Fair Labor Standards Act or violate any other law or regulation, if the
violation could reasonably be expected to have a material adverse effect on
Borrower's business or operations or would reasonably be expected to cause a
Material Adverse Change, or permit any of its Subsidiaries to do so.

8    EVENTS OF DEFAULT

     Any one of the following is an Event of Default:

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8.1 Payment Default.

      If Borrower fails to pay any of the Obligations within 3 days after their
due date. During the additional period the failure to cure the default is not
an Event of Default (but no Credit Extension will be made during the cure
period);

8.2 Covenant Default.

      If Borrower does not perform any obligation in Section 6 or violates any
covenant in Section 7 or does not perform or observe any other material term,
condition or covenant in this Agreement, any Loan Documents, or in any
agreement between Borrower and Bank and as to any default under a term,
condition or covenant that can be cured, has not cured the default within 10
days after it occurs, or if the default cannot be cured within 10 days or
cannot be cured after Borrower's attempts within 10 day period, and the default
may be cured within a reasonable time, then Borrower has an additional period
(of not more than 30 days) to attempt to cure the default. During the additional
time, the failure to cure the default is not an Event of Default (but no Credit
Extensions will be made during the cure period);

8.3 Material Adverse Change.

      (i) If there occurs a material impairment in the perfection or priority
of the Bank's security interest in the Collateral or in the value of such
Collateral (other than normal depreciation) which is not covered by adequate
insurance or (ii) if the Bank determines, based upon information available to
it and in its reasonable judgment, that there is a reasonable likelihood that
Borrower will fail to comply with one or more of the financial covenants in
Section 6 during the next succeeding financial reporting period.

8.4 Attachment.

      If any material portion of Borrower's assets is attached, seized, levied
on, or comes into possession of a trustee or receiver and the attachment,
seizure or levy is not removed in 10 days, or if Borrower is enjoined,
restrained, or prevented by court order from conducting a material part of its
business or if a judgment or other claim becomes a Lien on a material portion
of Borrower's assets, or if a notice of lien, levy, or assessment is filed
against any of Borrower's assets by any government agency and not paid within
10 days after Borrower receives notice. These are not Events of Default if
stayed or if a bond is posted pending contest by Borrower (but no Credit
Extensions will be made during the cure period);

8.5 Insolvency.

      If Borrower becomes insolvent or if Borrower begins an insolvency
Proceeding or an Insolvency Proceeding is begun against Borrower and not
dismissed or stayed within 30 days (but no Credit Extensions will be made
before any Insolvency Proceeding is dismissed);

8.6 Other Agreements.

      If there is a default in any agreement between Borrower and a third party
that gives the third party the right to accelerate any indebtedness exceeding
$100,000 or that could cause a Material Adverse Change;

8.7 Judgments.

      If a money judgment(s) in the aggregate of at least $50,000 is rendered
against Borrower and is unsatisfied and unstayed for 10 days (but no Credit
Extensions will be made before the judgment is stayed or satisfied); or

                                       12
<PAGE>   13
8.8 Misrepresentations.

      If Borrower or any Person acting for Borrower makes any material
misrepresentation or material misstatement now or later in any warranty or
representation in this Agreement or in any writing delivered to Bank or to
induce Bank to enter this Agreement or any Loan Document.

9. BANK'S RIGHTS AND REMEDIES

9.1 Rights and Remedies.

      When an Event of Default occurs and continues Bank may, without notice or
demand, do any or all of the following:

      (a) Declare all Obligations immediately due and payable (but if an Event
of Default described in Section 8.5 occurs all Obligations are immediately due
and payable without any action by Bank);

      (b) Stop advancing money or extending credit for Borrower's benefit under
this Agreement or under any other agreement between Borrower and Bank;

      (c) Settle or adjust disputes and claims directly with account debtors
for amounts, on terms and in any order that Bank considers advisable;

      (d) Make any payments and do any acts it considers necessary or
reasonable to protect its security interest in the Collateral. Borrower will
assemble the Collateral if Bank requires and make it available as Bank
designates. Bank may enter premises where the Collateral is located, take and
maintain possession of any part of the Collateral, and pay, purchase, contest,
or compromise any Lien which appears to be prior or superior to its security
interest and pay all expenses incurred. Borrower grants Bank a license to enter
and occupy any of its premises, without charge, to exercise any of Bank's
rights or remedies;

      (e) Apply to the Obligations any (i) balances and deposits of Borrower it
holds, or (ii) any amount held by Bank owing to or for the credit or the
account of Borrower;

      (f) Ship, reclaim, recover, store, finish, maintain, repair, prepare for
sale, advertise for sale, and sell the Collateral. Bank is granted a
non-exclusive, royalty-free license or other right to use, without charge,
Borrower's labels, Patents, Copyrights, Mask Works, rights of use of any name,
trade secrets, trade names, Trademarks, service marks, and advertising matter,
or any similar property as it pertains to the Collateral, in completing
production of, advertising for sale, and selling any Collateral and, in
connection with Bank's exercise of its rights under this Section, Borrower's
rights under all licenses and all franchise agreements inure to Bank's benefit;
and

      (g) Dispose of the Collateral according to the Code.

9.2 Power of Attorney.

      Effective only when an Event of Default occurs and continues, Borrower
irrevocably appoints Bank as its lawful attorney to: (i) endorse Borrower's
name on any checks or other forms of payment or security; (ii) sign Borrower's
name on any invoice or bill of lading for any Account or drafts against account
debtors, (iii) make, settle, and adjust all claims under Borrower's insurance
policies; (iv) settle and adjust disputes and claims about the Accounts directly
with the account debtors, for amounts and on terms Bank determines reasonable;
and (v) transfer the Collateral into the name of Bank or a third party as the
Code permits. Bank may exercise the power of attorney to sign Borrower's name
on any documents necessary to perfect or continue the perfection of any
security interest regardless of whether an Event of Default has occurred. Bank's
appointment as Borrower's attorney in fact, and all of Bank's rights and powers,

                                       13

<PAGE>   14
coupled with an interest, are irrevocable until all Obligations have been fully
repaid and performed and Bank's obligation to provide Credit Extensions
terminates.

9.3  ACCOUNT COLLECTION.

     When an Event of Default occurs and continues, Bank may notify any Person
owing Borrower money of Bank's security interest in the funds and verify the
amount of the Account. Borrower must collect all payments in trust for Bank
and, if requested by Bank, immediately deliver the payments to Bank in the form
received from the account debtor, with proper endorsements for deposit.

9.4  BANK EXPENSES.

     If Borrower fails to pay any amount or furnish any required proof of
payment to third persons, Bank may make all or part of the payment or obtain
insurance policies required in Section 6.5, and take any action under the
policies Bank deems prudent. Any amounts paid by Bank are Bank Expenses and
immediately due and payable, bearing interest at the then applicable rate and
secured by the Collateral. No payments by Bank are deemed an agreement to make
similar payments in the future or Bank's waiver of any Event of Default.

9.5  BANK'S LIABILITY FOR COLLATERAL.

     If Bank complies with reasonable banking practices and Section 9-207 of
the Code, it is not liable for: (a) the safekeeping of the Collateral; (b) any
loss or damage to the Collateral; (c) any diminution in the value of the
Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or
other person. Borrower bears all risk of loss, damage or destruction of the
Collateral.

9.6  REMEDIES CUMULATIVE.

     Bank's right and remedies under this Agreement, the Loan Documents, and
all other agreements are cumulative. Bank has all rights and remedies provided
under the Code, by law, or in equity. Bank's exercise of one right or remedy is
not an election, and Bank's waiver of any Event of Default is not a continuing
waiver. Bank's delay is not a waiver, election, or acquiescence. No waiver is
effective unless signed by Bank and then is only effective for the specific
instance and purpose for which it was given.

9.7  DEMAND WAIVER.

     Borrower waives demand, notice of default or dishonor, notice of payment
and nonpayment, notice of any default, nonpayment at maturity, release,
compromise, settlement, extension, or renewal of accounts, documents,
instruments, chattel paper, and guarantees held by Bank on which Borrower is
liable.

10   NOTICES.

     All notices or demands by any party about this Agreement or any other
related agreement must be in writing and be personally delivered or sent by an
overnight delivery service, by certified mail, postage prepaid, return receipt
requested, or by telefacsimile to the addresses set forth at the beginning of
this Agreement. A party may change its notice address by giving the other party
written notice.

                                       14
<PAGE>   15
11   CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

     Oregon law governs the Loan Documents without regard to principles of
conflicts of law. Borrower and Bank each submit to the executive jurisdiction of
the State and Federal courts in Washington County, Oregon.

BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY CONTEMPLATED
TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.
THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS
AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

12   GENERAL PROVISIONS

12.1 SUCCESSORS AND ASSIGNS.

     This Agreement binds and is for the benefit of the successors and
permitted assigns of each party. Borrower may not assign this Agreement or any
rights under it without Bank's prior written consent which may be granted or
withheld in Bank's discretion. Bank has the right, without the consent of or
notice to Borrower, to sell, transfer, negotiate, or grant participation in all
or any part of, or any interest in, Bank's obligations, rights and benefits
under this Agreement.

12.2 INDEMNIFICATION.

     Borrower will indemnify, defend and hold harmless Bank and its officers,
employees, and agents against (a) all obligations, demands, claims, and
liabilities asserted by any other party in connection with the transactions
contemplated by the Loan Documents; and (b) all losses or Bank Expenses
incurred, or paid by Bank from, following, or consequential to transactions
between Bank and Borrower (including reasonable attorneys fees and expenses),
except for losses caused by Bank's gross negligence or willful misconduct.

12.3 TIME OF ESSENCE.

     Time is of the essence for the performance of all obligations in this
Agreement.

12.4 SEVERABILITY OF PROVISION.

     Each provision of this Agreement is severable from every other provision
in determining the enforceability of any provision.

12.5 AMENDMENTS IN WRITING, INTEGRATION.

     All amendments to this Agreement must be in writing and signed by Borrower
and Bank. This Agreement represents the entire agreement about this subject
matter, and supersedes prior negotiations or agreements. All prior agreements,
understandings, representations, warranties, and negotiations between the
parties about the subject matter of this Agreement merge into this Agreement and
the Loan Documents. UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS
MADE BY THE BANK AFTER OCTOBER 3, 1998 CONCERNING LOANS AND OTHER CREDIT
EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED
SOLELY BY THE BORROWER'S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION TO
BE SIGNED BY US TO BE ENFORCEABLE.

                                       15
<PAGE>   16
12.6    Counterparts.

        This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and
delivered, are an original, and all taken together, constitute one Agreement.

12.7    Survival.

        All covenants, representations and warranties made in this Agreement
continue in full force while any Obligations remain outstanding. The obligations
of Borrower in Section 12.2 to indemnify Bank will survive until all statutes of
limitations for actions that may be brought against Bank have run.

12.8    Confidentiality.

        In handling any confidential information, Bank will exercise the same
degree of care that it exercises for its own proprietary information, but
disclosure of information may be made (i) to Bank's subsidiaries or affiliates
in connection with their business with Borrower, (ii) to prospective transferees
or purchasers of any interest in the loans, (iii) as required by law,
regulation, subpoena, or other order, (iv) as required in connection with Bank's
examination or audit and (v) as Bank considers appropriate exercising remedies
under this Agreement. Confidential information does not include information that
either: (a) is in the public domain or in Bank's possession when disclosed to
Bank, or becomes part of the public domain after disclosure to Bank; or (b) is
disclosed to Bank by a third party, if Bank does not know that the third party
is prohibited from disclosing the information.

12.9    Effect of Amendment and Restatement.

        This Agreement is intended to and does completely amend and restate
without novation, the Original Agreement. All credit extensions or loans
outstanding under the Original Agreement are and shall continue to be
outstanding under this Agreement. All security interests granted under the
Original Agreement are hereby confirmed and ratified and shall continue to
secure all Obligations under this Agreement.

12.10   Attorneys' Fees, Costs and Expenses.

        In any action or proceeding between Borrower and Bank arising out of the
Loan Documents the prevailing party will be entitled to recover its reasonable
attorneys' fees and other reasonable costs and expenses incurred, in addition to
any other relief to which it may be entitled.

13      DEFINITIONS

13.1    Definitions.

        In this Agreement:

        "Accounts" are all existing and later arising accounts, contract rights,
and other obligations owed Borrower in connection with its sale or lease of
goods (including licensing software and other technology) or provision of
services, all credit insurance, guarantees, other security and all merchandise
returned or reclaimed by Borrower and Borrower's Books relating to any of the
foregoing.

        "Advance" or "Advances" is a loan advance (or advances) under the
Committed Revolving Line.

                                       16
<PAGE>   17
        "Affiliate" of a Person is a Person that owns or controls directly or
indirectly the Person, any Person that controls or is controlled by or is under
common control with the Person, and each of that Person's senior executive
officers, directors, partners and, for any Person that is a limited liability
company, that Person's managers and members.

        "Bank Expenses" are all audit fees and expenses and reasonable costs
and expenses (including reasonable attorneys' fees and expenses) for preparing,
negotiating, administering, defending and enforcing the Loan Documents
(including appeals or Insolvency Proceedings).

        "Borrower's Books" are all Borrower's books and records including
ledgers, records regarding Borrower's assets or liabilities, the Collateral,
business operations or financial condition and all computer programs or discs
or any equipment containing the information.

        "Borrowing Base" is 80% of Eligible Accounts as determined by Bank from
Borrower's most recent Borrowing Base Certificate.

        "Business Day" is any day that is not a Saturday, Sunday or a day on
which the Bank is closed.

        "Closing Date" is the date of this Agreement.

        "Code" is the Oregon Uniform Commercial Code.

        "Collateral" is the property described on Exhibit A.

        "Committed Revolving Line" is an Advanced of up to $2,000,000 subject to
the Increase Amount.

        "Contingent Obligation" is, for any Person, any direct or indirect
liability, contingent or not, of that Person for (i) any indebtedness, lease,
dividend, letter of credit or other obligation of another such as an obligation
directly or indirectly guaranteed, endorsed, co-made, discounted or sold with
recourse by that Person, or for which that Person is directly or indirectly
liable; (ii) any obligations for undrawn letters of credit for the account of
that Person; and (iii) all obligations from any Interest rate, currency or
commodity swap agreement. Interest rate cap or collar agreement, or other
agreement or arrangement designated to protect a Person against fluctuation in
Interest rates, currency exchange rates or commodity prices; but "Contingent
Obligation" does not include endorsements in the ordinary course of business.
The amount  of a Contingent Obligation is the stated or determined amount of
the primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by
the Person in good faith; but the amount may not exceed the maximum of the
obligations under the guarantee or other support arrangement.

        "Copyrights" are all copyright rights, applications or registrations
and like protection in each work or authorship or derivative work, whether
published or not (whether or not it is a trade secret) now or later existing,
created, acquired or held.

        "Credit Extension" is each advance, Letter of Credit. Term Loan, or any
other extension or credit by Bank for Borrower's benefit

        "Current Liabilities" are the aggregate amount of Borrower's Total
Liabilities which mature within one (1) year.

        "Deferred Maintenance Revenue" is all amounts received in advance of
performance under maintenance contract and not yet recognized as revenue.

                                       17

<PAGE>   18
        "Eligible Accounts" are Accounts in the ordinary course of Borrower's
business that meet all Borrower's representations and warranties in Section 6;
but Bank may change eligibility standards by giving Borrower notice. Unless
Bank agrees otherwise in writing, Eligible Accounts will not include:

        (a)  Accounts that the account debtor has not paid within 90 days of
        invoice date:

        (b)  Accounts for an account debtor, 50% or more of whose Accounts have
        not been paid within 90 days of invoice date;

        (c)  Credit balances over 90 days from invoice date;

        (d)  Accounts for an account debtor, including affiliates, whose total
        obligations to Borrower exceed 25% of all Accounts, for this amounts
        that exceed that percentage, unless the Bank approves in writing
        (except that Accounts from account debtors who have a Standard & Poor's
        rating of [illegible] or better shall only be subject to the 25%
        concentration for amounts in excess of the first $500,000 in aggregate
        advances);

        (e)  Accounts for which the account debtor does not have its principal
        place of business in the United States;

        (f)  Accounts for which the account debtor is a federal, state or local
        government entity or any department, agency, or instrumentally;

        (g)  Accounts for which Borrower owes the account debtor, but only up
        to the amount owed (sometimes called "contra" accounts, accounts
        payable, customer deposits or credit accounts);

        (h)  Accounts for demonstration or promotional equipment, or in which
        goods are consigned, sales guaranteed, sale or return, sale on
        approval, bill and hold, or other terms if account debtor's payment may
        be conditional;

        (i)  Accounts for which the account debtor is Borrower's Affiliate,
        officer, employee, or agent;

        (j)  Accounts in which the account debtor disputes liability or makes
        any claim and Bank believes there may be a basis for dispute (but only
        up to the disputed or claimed amount), or if the Account Debtor is
        subject to an insolvency Proceeding, or becomes insolvent, or goes out
        of business;

        (k)  Accounts for which Bank reasonably determines collection to be
        doubtful.

        "Equipment" is all present and future machinery, equipment, tenant
improvements, furniture, fixtures, vehicles, tools, parts and attachments in
which Borrower has any interest.

        "ERISA" is the Employment Retirement Income Security Act of 1974, and
its regulations.

        "GAAP" is generally accepted accounting principles.

        "Increase Amount" is an increase in the Committed Revolving Line of
$500,000 subject to (i) Borrower a receipt of revenue in an amount not less
than $3,000,000 by September 30, 1999; (ii) Borrower's payment of the Increase
Fee, and (iii) no material adverse change in Borrower's financial condition.

        "Increase Fee" is an amount equal to $2,350, due and payable to Bank
upon availability of the increase Amount.

                                       18

<PAGE>   19
     "Indebtedness" is (a) indebtedness for borrowed money or the deferred
price of property or services, such as reimbursement and other obligations for
surety bonds and letters of credit, (b) obligations evidenced by notes, bonds,
debentures or similar instruments, (c) capital lease obligations and (d)
Contingent Obligations.

     "Insolvency Proceedings" are proceedings by or against any Person under
the United States Bankruptcy Code, or any other bankruptcy or insolvency law,
including assignments for the benefit of creditors, compositions, extensions
generally with its creditors, or proceedings seeking reorganization
arrangements, or other relief.

     "Intellectual Property" is:

     (a)  Copyrights, Trademarks, Patents and Mask Works including amendments,
renewals, extensions, and all licenses or other rights to use and all license
fees and royalties from the use;

     (b)  Any trade secrets and any intellectual property rights in computer
software and computer software products now or later existing, created,
acquired or held;

     (c)  All design rights which may be available to Borrower now or later
created, acquired or held;

     (d)  Any claims for damages (past, present or future) for infringement of
any of the rights above, with the right, but not the obligation, to sue and
collect damages for use or infringement of the intellectual property rights
above;

     All proceeds and products of the foregoing, including all insurance,
indemnity or warranty payments.

     "Inventory" is present and future inventory in which Borrower has any
interest, including merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products intended for sale or
lease or to be furnished under a contract of service, of every kind and
description now or later owned by or in the custody or possession, actual or
constructive, of Borrower, including inventory temporarily out of its custody
or possession or in transit and including returns on any accounts or other
proceeds (including insurance proceeds) from the sale or disposition of any of
the foregoing and any documents of title.

     "Investment" is any beneficial ownership of (including stock, partnership
interest or other securities) any Person, or any loan, advance or capital
contribution to any Person.

     "Letter of Credit" is defined in Section 2.1.2.

     "Lien" is a mortgage, lien, deed of trust, charge, pledge,
security interest or other encumbrance.

     "Loss Documents" are, collectively, this Agreement, any note, or notes or
guaranties executed by Borrower or guarantor, and any other present or future
agreement between Borrower and/or for the benefit of Bank in connection with
this Agreement, all as amended, executed or restated.

     "Mask Works" are all mask work or similar rights available for the
protection of semiconductor chips, now owned or later acquired.

     "Material Adverse Change" is defined in Section 8.3.

                                       19

<PAGE>   20
     "Obligations" are debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, including cash management services,
letters of credit and foreign exchange contracts, if any and including interest
accruing after Insolvency Proceedings begin and debts, liabilities, or
obligations of Borrower assigned to Bank.

     "Original Agreement" has the meaning set forth in recital paragraph A.

     "Patents" are patents, patent applications and like protections, including
improvements, divisions, continuations, renewals, reissues, extensions and
continuations-in-part of the same.

     "Permitted Indebtedness" is:

     (a) Borrower's indebtedness to Bank under this Agreement or any other Loan
Document;

     (b) Indebtedness existing on the closing Date and shown on the Schedule;

     (c) Subordinated Debt;

     (d) Indebtedness to trade creditors incurred in the ordinary course of
business; and

     (e) Indebtedness secured by Permitted Liens.

     "Permitted Investments" are:

     (a) Investments shown on the Schedule and existing on the Closing Date; and

     (b) (i) marketable direct obligations issued or unconditionally guaranteed
by the United States or its agency or any State maturing within 1 year from its
acquisition, (ii) commercial paper maturing no more than 1 year after its
creation and having the highest rating from either Standard & Poor's Corporation
or Moody's Investors Service, Inc., and (iii) Bank's certificate of deposit
issued maturing no more than 1 year after issue.

     "Permitted Liens" are:

     (a) Liens existing on the Closing Date and shown on the Schedule or
arising under this Agreement or other Loan Documents;

     (b) Liens for taxes, fees, assessments or other government charges or
levies, either not delinquent or being contested in good faith and for which
Borrower maintains adequate reserves on its Books, if they have no priority
over any of Bank's security interests;

     (c) Purchase money liens (i) on Equipment or held by Borrower or its
Subsidiaries incurred for financing the acquisition of the Equipment, or (ii)
existing on equipment when acquired, if the Lien is confined to the property
and improvements and the proceeds of the equipment;

     (d) Leases or subleases and licenses or sublicenses granted in the
ordinary course of Borrower's business and any interest or title of a lessor,
licensor or under any lease of license, if the leases, subleases, licenses and
sublicenses permit granting Bank a security interest;

     (e) Liens incurred in the extension, renewal or refinancing of the
indebtedness secured by Liens described in (a) through (c), but any extension,
renewal or replacement Lien must be limited to the property encumbered by the
existing Lien and the principal amount of the indebtedness may not increase.

                                       20
<PAGE>   21
      "Person" is any individual, sole proprietorship, partnership, limited
liability company, joint venture, company association, trust, unincorporated
organization, association, corporation, institution, public benefit
corporation, firm, joint stock company, estate, entity or government agency.

      "Prime Rate" is Bank's most recently announced "prime rate," even if it
is not Bank's lowest rate.

      "Quick Assets" is on any date, the Borrower's consolidated, unrestricted
cash, cash equivalents, net billed accounts receivable and investments with
maturities of fewer than 12 months determined according to GAAP.

      "Responsible Officer" is each of the Chief Executive Officer, the
President, the Chief Financial Officer and the Controller of Borrower.

      "Revolving Maturity Date" is August 25, 2000.

      "Schedule" is any attached schedule of exceptions.

      "Subordinated Debt" is debt incurred by Borrower subordinated to
Borrower's debt to Bank (and identified as subordinated by Borrower and Bank).

      "Subsidiary" is for any Person, or any other business entity of which
more than 50% of the voting stock or other equity interests is owned or
controlled, directly or indirectly, by the Person or one or more Affiliates of
the Person.

      "Tangible Net Worth" is, on any date, the consolidated total assets of
Borrower and its Subsidiaries minus (i) any amounts attributable to (a)
goodwill, (b) Intangible items such as unamortized debt discount and expense,
Patents, trade and service marks and names, Copyrights and research and
development expenses except prepaid expenses, and (c) reserves not already
deducted from assets, and (ii) Total Liabilities.

      "Term Loan" is loan with a current principal balance of $329,201.

      "Term Loan Maturity Date" is December 28, 2000.

      "Total Liabilities" is on any day, obligations that should, under GAAP,
be classified as liabilities on Borrower's consolidated balance sheet,
including all indebtedness, and current portion Subordinated Debt allowed to be
paid, but excluding all other Subordinated Debt.

      "Trademarks" are trademark and servicemark rights, registered or not,
applications to register and registrations and like protections, and the entire
goodwill of the business of Assignor connected with the trademarks.

BORROWER:

WEBRIDGE, INC.

By:  /s/ JOSH L. BRINKER
    ----------------------
Title: CFO
       -------------------

                                       21
<PAGE>   22
BANK:

SILICON VALLEY BANK

By: /s/ [SIGNATURE ILLEGIBLE]
   ---------------------

Title: Vice President
  ---------------------

                                       22
<PAGE>   23
                                   EXHIBIT A

     The Collateral consists of all of Borrower's right, title and interest in
and to the following:

     All goods and equipment now owned or hereafter acquired, including, without
limitation, all machinery, fixtures, vehicles (including motor vehicles and
trailers), and any interest in any of the foregoing, and all attachments,
accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing, wherever located;

     All inventory, now owned or hereafter acquired including, without
limitation, all merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products including such
inventory as is temporarily out of Borrower's custody or possession or in
transit and including any returns upon any accounts or other proceeds, including
insurance proceeds, resulting from the sale or disposition of any of the
foregoing and any documents of title representing any of the above;

     All contract rights and general intangibles now owned or hereafter
acquired, including, without limitation, goodwill, trademarks, servicemarks,
trade styles, trade names, patents, patent applications, leases, license
agreements, franchise agreements, blueprints, drawings, purchase orders,
customer lists, route lists, infringements, claims, computer programs, computer
discs, computer tapes, literature, reports, catalogs, design rights, income tax
refunds, payments of insurance and rights to payment of any kind;

     All now existing and hereafter arising accounts, contract rights,
royalties, license rights and all other forms of obligations owing to Borrower
arising out of the sale or lease of goods, the licensing of technology or the
rendering of services by Borrower, whether or not earned by performance, and any
and all credit insurance, guaranties and other security therefor, as well as all
merchandise returned in or reclaimed by Borrower;

     All documents, cash, deposit accounts, securities, securities entitlements,
securities accounts, investment property, financial assets, letters of credit,
certificates of deposit, instruments and chattel paper now owned or hereafter
acquired and Borrower's Books relating to the foregoing;

     All copyright rights, copyright applications, copyright registrations and
like protections in each work of authorship and derivative work thereof, whether
published or unpublished, now owned or hereafter acquired; all trade secret
rights, including all rights to unpatented inventions, know-how, operating
manuals, license rights and agreements and confidential information, now owned
or hereafter acquired; all mask work or similar rights available for the
protection of semiconductor chips, now owned or hereafter acquired; all claims
for damages by way of any past, present and future infringement of any of the
foregoing; and

     All Borrower's Books relating to the foregoing and any and all claims,
rights and interests in any of the above and all substitutions for, additions
and accessions to and proceeds thereof.
<PAGE>   24
                                   EXHIBIT B

                  LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM

             DEADLINE FOR SAME DAY PROCESSING IS 3:00 P.M., P.S.T.

TO: CENTRAL CLIENT SERVICE DIVISION                    DATE: _______________

FAXS: (408) 496-2428                                   TIME: _______________

FROM: WEBRIDGE, INC.________________________________________________________
                             CLIENT NAME (BORROWER)

REQUESTED BY: ______________________________________________________________
                            AUTHORIZED SIGNER'S NAME

AUTHORIZED SIGNATURE: ______________________________________________________

PHONE NUMBER: ______________________________________________________________

FROM ACCOUNT # ______________________  TO ACCOUNT # ________________________

REQUESTED TRANSACTION TYPE                   REQUESTED DOLLAR AMOUNT

PRINCIPAL INCREASE (ADVANCE)                 $______________________________
PRINCIPAL PAYMENT (ONLY)                     $______________________________
INTEREST PAYMENT (ONLY)                      $______________________________
PRINCIPAL AND INTEREST (PAYMENT)             $______________________________

OTHER INSTRUCTIONS: ________________________________________________________

____________________________________________________________________________

All Borrower's representations and warranties in the Amended and Restated Loan
and Security Agreement are correct and complete in all material respects on
the date of the telephone request for and Advance confirmed by Borrowing
Certificate; but those representations and warranties expressly referring to
another date shall be true, complete in all material respects as of that date.

                                 BANK USE ONLY

TELEPHONE REQUEST:
 The following person is authorized to request the loan payment transfer loan
advance on the advance designated account and is known to me.

________________________                     _______________________________
  Authorized Requester                                 Phone #

________________________                     _______________________________
  Received by (Bank)                                   Phone #

                         ____________________________
                          Authorized Signature (Bank)
<PAGE>   25
                                   EXHIBIT C
                           BORROWING BASE CERTIFICATE

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
BORROWER: WEBRIDGE, INC.                             Bank: Silicon Valley Bank
                                                           3003 T????   Drive
Commitment Amount: $2,000,000                              Santa Clara, CA 95054
  subject to Increased Amount
--------------------------------------------------------------------------------
<S> <C>                                                  <C>          <C>
ACCOUNTS RECEIVABLE
 1. Accounts Receivable Book Value as of                              $
                                         ---------                     ---------
 2. Additions (please explain on reverse)                             $
                                                                       ---------
 3. TOTAL ACCOUNTS RECEIVABLE                                         $
                                                                       ---------

ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
 4. Amounts over 90 days due                             $
                                                          ---------
 5. Balance of 50% over 90 day accounts                  $
                                                          ---------
 6. Credit balances over 90 days                         $
                                                          ---------
 7. Concentration Limits*                                $
                                                          ---------
 8. Foreign Accounts                                     $
                                                          ---------
 9. Governmental Accounts                                $
                                                          ---------
10. Contra Accounts                                      $
11. Promotion or Demo Accounts                           $
                                                          ---------
12. Intercompany/Employee Accounts                       $
                                                          ---------
13. Other (please explain on reverse)                    $
                                                          ---------
14. TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS                              $
                                                                       ---------
15. Eligible Accounts (#3 minus #14)                                  $
                                                                       ---------
16. LOAN VALUE OF ACCOUNTS (80% of $16)                               $
                                                                       ---------
* Accounts from account debtors having a Standard &
  Poor's rating of BBB or better, shall only subject
  to the 25% concentration for amounts in excess of
  the first $500,000 in aggregate Advances.

BALANCES
17. MAXIMUM LOAN AMOUNT                                  $
                                                          ---------
18. Total Funds Available (Lessor of $17 or $16)                      $
                                                                       ---------
19. Present balance owing on Line of Credit              $
                                                          ---------
20. Outstanding under Sublimits (LC)                     $
                                                          ---------
21. RESERVE POSITION ($18 minus $19 and $20)                          $
                                                                       --------
The undersigned represents and warrants that this is true, complete and correct,
and that the information in this Borrowing Base Certificate complies with the
representations and warranties in the Amended and Restated Loan and Security
Agreement between the undersigned and Silicon Valley Bank.

                                                        -----------------------
COMMENTS                                                |BANK USE ONLY
                                                        |
                                                        |Rec'd By:
                                                        |          ------------
                                                        |          Auth. Signer
WEBRIDGE, INC.                                          |Date:
                                                        |     -----------------
                                                        |Verified:
By:                                                     |         -------------
   -----------------------                              |         Auth. Signer
   Authorized Signer                                    |Date:
                                                        |     -----------------
                                                        |----------------------
                                                        |----------------------
</TABLE>
<PAGE>   26
                                   EXHIBIT D
                             COMPLIANCE CERTIFICATE

TO:    SILICON VALLEY BANK
       3003 Tasman Drive
       Santa Clara, CA 95054

FROM:  WEBRIDGE, INC.

     The undersigned authorized officer of WEBRIDGE, INC. ("Borrower")
certifies that under the terms and conditions of the Amended and Restated Loan
and Security Agreement between Borrower and Bank (the "Agreement"), (i)
Borrower is in complete compliance for the period ending ____________ with all
required covenants except as noted below and (ii) all representations and
warranties in the Agreement are true and correct in all material respects on
this date. Attached are the required documents supporting the certification.
The Officer certifies that these are prepared in accordance with Generally
Accepted Accounting Principles (GAAP) consistently applied from one period to
the next except as explained in an accompanying letter or footnotes. The
Officer acknowledges that no borrowings may be requested at any time or date of
determination that Borrower is not in compliance with any of the terms of the
Agreement, and that compliance is determined not just at the date this
certificate is delivered.

       Please indicate compliance status by circling Yes/No under "Complies"
column.

<TABLE>
<CAPTION>
     Reporting Covenant                      Required                     Complies
     ------------------                      --------                     --------
<S>                                          <C>                          <C>
     Monthly financial statements            Monthly within 30 days       Yes   No
     Compliance Certificate*                 Monthly within 30 days       Yes   No
     Annual (Audited)                        FYE within 120 days          Yes   No
     A/R & A/P Aging (by invoice date)**     Monthly within 20 days       Yes   No
     A/R Audit                               Initial and Annual           Yes   No
     Borrowing Base Certificate              Monthly within 20 days       Yes   No
*In any month that an Advance is requested
**At such time as outstanding Advances exist, or prior to the initial Advance.

     Financial Covenant                      Required      Actual         Complies
     ------------------                      --------      ------         --------
     Maintain on a Monthly Basis:
       Minimum Quick Ratio (Adjusted)        1.50:1.00     ____:1.00      Yes   No
       Minimum Tangible Net Worth            $2,000,000    $________      Yes   No
       Maximum Debt/Tangible Net Worth       2.00:1.00     ____:1.00      Yes   No
</TABLE>

Comments Regarding Exceptions: See Attached              BANK USE ONLY

                                               Received by:____________________
Sincerely,                                                   AUTHORIZED SIGNER

                                               Date:___________________________
WEBRIDGE, INC.
                                               Verified:_______________________
_______________________________                              AUTHORIZED SIGNER
SIGNATURE
                                               Date:___________________________
_______________________________
TITLE                                          Compliance Status:      Yes   No

_______________________________
DATE

<PAGE>   27
                    INTELLECTUAL PROPERTY SECURITY AGREEMENT

     This Intellectual Property Security Agreement is entered into as of August
25, 1999 by and between SILICON VALLEY BANK ("Bank") and WEBRIDGE, INC.
("Grantor").

                                    RECITALS

     A.   Bank has agreed to make certain advances of money and to extend
certain financial accommodation to Grantor (the "Loans") in the amounts and
manner set forth in that certain Amended and Restated Loan and Security
Agreement by and between Bank and Grantor dated August 25, 1999 (as the same
may be amended, modified or supplemented from time to time, the "Loan
Agreement"; capitalized terms used herein are used as defined in the Loan
Agreement. Bank is willing to make the Loans to Grantor, but only upon the
condition, among others, that Grantor shall grant to Bank a security interest
in certain Copyrights, Trademarks, Patents, and Mask Works to secure the
obligations of Grantor under the Loan Agreement.

     B.   Pursuant to the terms of the Loan Agreement, Grantor has granted to
Bank a security interest in all of Grantor's right, title and interest, whether
presently existing or hereafter acquired, in, to and under all of the
Collateral.

     NOW, THEREFORE, for good and valuable consideration, receipt of which is
hereby acknowledged, and intending to be legally bound, as collateral security
for the prompt and complete payment when due of its obligations under the Loan
Agreement, Grantor hereby represents, warrants, covenants and agrees as follows:

                                   AGREEMENT

     To Secure its obligations under the Loan Agreement, Grantor grants and
pledges to Bank a security interest in all of Grantor's right, title and
interest in, to and under its Intellectual Property Collateral (including
without limitation those Copyrights, Patents, Trademarks and Mask Works listed
on Schedules A, B, C, and D hereto), and including without limitation all
proceeds thereof (such as, by way of example but not by way of limitation,
license royalties and proceeds of infringement suits), the right to sue for
past, present and futures infringements, all rights corresponding thereto
throughout the world and all re-issues, divisions, continuations, renewals,
extensions and continuations-in-part thereof.

     This security interest is granted in conjunction with the security
interest granted to Bank under the Loan Agreement. The rights and remedies of
Bank with respect to the security interest granted hereby are in addition to
those set forth in the Loan Agreement and the other Loan Documents, and those
which are now or hereafter available to Bank as a matter of law or equity. Each
right, power and remedy of Bank provided for herein or in the Loan Agreement or
any of the Loan Documents, or now or hereafter existing at law or in equity
shall be cumulative and concurrent and shall be in addition to every right,
power or remedy provided for herein and the exercise by Bank of any one or more
of the rights, powers or remedies provided for in this Intellectual Property
Security Agreement, the Loan Agreement or any of the other Loan Documents, or
now or hereafter existing at law or in equity, shall not preclude the
simultaneous or later exercise by any person, including Bank, of any or all
other rights, powers or remedies.

     IN WITNESS WHEREOF, the parties have cause this Intellectual Property
Security Agreement to be duly executed by its officers thereunto duly
authorized as of the first date written above.

<PAGE>   28
                                        GRANTOR:

Address of Grantor:                     WEBRIDGE, INC.

226 SW Broadway, Suite 500              By:  /s/ DAVID L. BRINKER
Portland, OR 97205                         ----------------------------

Attn:  David Brinker                    Title:  CFO
     ----------------------------             -------------------------

                                        BANK:

Address of Bank:                        SILICON VALLEY BANK

11000 SW Stratus, Ste. 170              By:  /s/ [SIGNATURE ILLEGIBLE]
Beaverton, OR 97008-7113                   ----------------------------

Attn:                                   Title:  Vice President
     ----------------------------             -------------------------

                                       2
<PAGE>   29
                                   EXHIBIT A

                                   COPYRIGHTS

<TABLE>
<CAPTION>
                                        REGISTRATION/          REGISTRATION/
                                        APPLICATION            APPLICATION
DESCRIPTION                             NUMBER                 DATE
-----------                             -------------          -------------
<S>                                     <C>                    <C>

</TABLE>
<PAGE>   30
                                   EXHIBIT B

                                    PATENTS

<TABLE>
<CAPTION>
                                        REGISTRATION/          REGISTRATION/
                                        APPLICATION            APPLICATION
DESCRIPTION                             NUMBER                 DATE
-----------                             -------------          -------------
<S>                                     <C>                    <C>

</TABLE>
<PAGE>   31
                                   EXHIBIT C

                                   TRADEMARKS

<TABLE>
<CAPTION>
                                        REGISTRATION/          REGISTRATION/
                                        APPLICATION            APPLICATION
DESCRIPTION                             NUMBER                 DATE
-----------                             -------------          -------------
<S>                                     <C>                    <C>
"WEBRIDGE"                               75/483,709               7/13/99
</TABLE>
<PAGE>   32
                                   EXHIBIT D

                                   MASK WORKS

<TABLE>
<CAPTION>
                                        REGISTRATION/          REGISTRATION/
                                        APPLICATION            APPLICATION
DESCRIPTION                             NUMBER                 DATE
-----------                             -------------          -------------
<S>                                     <C>                    <C>

</TABLE>
<PAGE>   33
                         CORPORATE BORROWING RESOLUTION

Borrower:  WEBRIDGE, INC.                  Bank:  Silicon Valley Bank
           225 SW Broadway, Suite 600             11000 SW Stratus, Ste. 170
           Portland, OR 97208                     Beaverton, OR 97006-7113

I, the undersigned Secretary or Assistant Secretary of WEBRIDGE, INC.
("Borrower"), HEREBY CERTIFY that Borrower is a corporation duly organized and
existing under and by virtue of the laws of the State of Delaware.

I FURTHER CERTIFY that at a meeting of the Directors of Borrower (or by other
duly authorized corporate action in lieu of a meeting), duly called and held, at
which a quorum was present and voting, the following resolutions were adopted.

BE IT RESOLVED, that any one (1) of the following named officers, employees, or
agents of Borrower, whose actual signatures are shown below:

<TABLE>
<CAPTION>
     NAMES                POSITIONS           ACTUAL SIGNATURES
     -----                ---------           -----------------
<S>                      <C>                 <C>
Gary Fielland            Pres/CEO            /s/ GARY FIELLAND
Mark Anastas             COO                 /s/ MARK ANASTAS
David Brinker            CFO                 /s/ David Brinker
</TABLE>

acting for and on behalf of Borrower and as its act and deed be, and they
hereby are, authorized and empowered:

     BORROW MONEY. To borrow from time to time from Silicon Valley Bank
     ("Bank"), on such terms as may be agreed upon between the officers of
     Borrower and Bank, such sum or sums of money as in their judgment should
     be borrowed.

     EXECUTE LOAN DOCUMENT. To execute and deliver to Bank the loan documents
     of Borrower, on Bank's forms, at such rates of interest and on such terms
     as may be agreed upon, evidencing the sums of money so borrowed or any
     indebtedness of Borrower to Bank, and also to execute and deliver to Bank
     one of more renewals, extensions, modifications, refinancings,
     consolidations, or substitutions for one or more of the loan documents, or
     any portion of the loan documents.

     GRANT SECURITY. To grant a security interest to Bank in any of Borrower's
     assets, which security interest shall secure all of Borrower's obligations
     to Bank.

     NEGOTIATE ITEMS. To draw, endorse, and discount with Bank all drafts,
     trade acceptances, promissory notes, or other evidences of indebtedness
     payable to or belonging to Borrower or in which Borrower may have an
     interest, and either to receive cash for the same or to cause such
     proceeds to be credited to the account of Borrower with Bank, or to cause
     such other disposition of the proceeds delivered therefrom as they may
     deem advisable.

     LETTERS OF CREDIT. To execute letter of credit applications and other
     related documents pertaining to Bank's issuance of letters of credit.

     FOREIGN EXCHANGE CONTRACTS. To execute and deliver foreign exchange
     contracts, either spot or forward, from time to time, in such amount as,
     in the judgment of the officer or officers herein authorized.

<PAGE>   34
     ISSUE WARRANTS. To issue warrants to purchase Borrower's capital stock, for
     such class, series and number, and on such terms, as an officer of Borrower
     shall deem appropriate.

     FURTHER ACTS. In the case of lines of credit, to designate additional or
     alternate individuals as being authorized to request advances thereunder,
     and in all cases, to do and preform such other acts and things, to pay any
     and all fees and costs, and to execute and deliver such other documents and
     agreements, including agreements waiving the right to a trial by jury, as
     they may in their discretion deem reasonably necessary or proper in order
     to carry into effect the provisions of these Resolutions.

BE IT FURTHER RESOLVED, that any and all acts authorized pursuant in these
Resolutions and performed prior to the passage of these resolutions are hereby
ratified and approved, that these Resolutions shall remain in full force and
effect and Bank may rely on these Resolutions until written notice of their
revocation shall have been delivered to and received by Bank. Any such notice
shall not affect any of Borrower's agreements or commitments in effect at the
time notice is given.

I FURTHER CERTIFY that the persons named above are principal officers of the
Borrower and occupy the positions set opposite their respective names; that the
foregoing Resolutions now stand of record on the books of the Borrower; and that
they are in full force and effect and have not been modified or revoked in any
manner whatsoever.

IN WITNESS WHEREOF, I have hereunto set my hand on August 25, 1999 and attest
that the signatures set opposite the names listed above are their genuine
signatures.

CERTIFIED TO AND ATTESTED BY:

x /s/ MARK ANASTAS
  ---------------------------------
  *Secretary or Assistant Secretary

x /s/ DAVID BRINKER
  ---------------------------------

*NOTE: In case the Secretary or other certifying officer is designated by the
foregoing resolutions as one of the signing officers, this resolution should
also be signed by a second Officer or Director of Borrower.

                                       2<PAGE>   1
                                                                    EXHIBIT 10.4

                             MASTER LEASE AGREEMENT

MASTER LEASE AGREEMENT (the "Master Lease") dated September 24, 1999 by and
between COMIDSCO, INC. ("Lessor") and WEBRIDGE.

     CONSIDERATION of the mutual agreements described below, the parties agree
as follows (all capitalized terms are defined in Section 14.18):

1. PROPERTY LEASED.

Lessor leases to Lessee all of the Equipment described on each Summary Equipment
Schedule. In the event of a conflict, the term of the applicable Schedule
prevail over this Master Lease.

2. TERM.

On the Commencement Date, Lessee will be deemed to accept the Equipment, will
be bound to its rental obligations for each item of Equipment and the term of a
Summary Equipment Schedule will begin and continue through the Initial Term and
thereafter until terminated by either party upon prior written notice received
during the Notice Period. No termination may be effective prior to the
expiration of the Initial Term.

3. RENT AND PAYMENT.

Rent is due and payable in advance on the first day of each Rent Interval at
the address specified in Lessor's Invoice. Interim Rent is due and payable when
invoiced. If any payment is not made when due, Lessee will pay a Late Charge on
the overdue amount. Upon Lessee's execution of each Schedule, Lessee will pay
Lessor the Advance specified on the Schedule. The Advance will be credited
towards the final Rent payment if Lessee is not then in default. No interest
will be paid on the Advance.

4. SELECTION; WARRANTY AND DISCLAIMER OF WARRANTIES.

4.1 SELECTION. Lessee acknowledges that it has selected the Equipment and
disclaims any reliance upon statements made by the Lessor, other than as set
forth in the Schedule.

4.2 WARRANTY AND DISCLAIMER OF WARRANTIES. Lessor warrants to Lessee that, so
long as Lessee is not in default, Lessor will not disturb Lessee's quiet and
peaceful possession, and unrestricted use of the Equipment. To the extent
permitted by the manufacturer, Lessor assigns to Lessee during the term of the
Summary Equipment Schedule any manufacturer's warranties for the Equipment.
LESSOR MAKES NO OTHER WARRANTY, EXPRESS OR IMPLIED AS TO ANY MATTER WHATSOEVER,
INCLUDING, WITHOUT LIMITATION, THE MERCHANTABILITY OF THE EQUIPMENT FOR ITS
FITNESS FOR A PARTICULAR PURPOSE. Lessor is not responsible for any liability,
claim, loss, damage or expense of any kind (including strict liability in tort)
caused by the Equipment except for any loss or damage caused by the willful
misconduct or negligent acts of Lessor. In no event is Lessor responsible for
special, incidental or consequential damages.

5. TITLE; RELOCATION OR SUBLEASE; AND ASSIGNMENT.

5.1 TITLE. Lessee holds the Equipment subject and subordinate to the rights of
the Owner, Lessor, any Assignee and any Secured Party. Lessee authorizes
Lessor, as Lessee's agent, and at lessor's expense, to prepare, execute and
file in Lessee's name precautionary Uniform Commercial Code financing
statements showing the interest of the Owner, Lessor, and any Assignee or
Secured Party in the Equipment and to insert serial numbers in Summary
Equipment Schedules as appropriate. Lessee will, at its expense, keep the
Equipment free and clear from any liens or encumbrances of any kind (except any
caused by Lessor) and will indemnify and hold the Owner, Lessor, any Assignee
and Secured Party harmless from and against any loss caused by Lessee's failure
to do so, except where such is caused by Lessor.

5.2 RELOCATION OR SUBLEASE. Upon prior written notice, Lessee may relocate
Equipment to any location within the continental United States provided (i) the
Equipment will not be used by an entity exempt from federal income tax, and (ii)
all additional costs (including any administrative fees, additional taxes and
insurance coverage) are reconciled and promptly paid by Lessee.

Lessee may sublease the Equipment upon the reasonable consent of the Lessor and
the Secured Party. Such consent to sublease will be granted if: (i) Lessee
meets the relocation requirements set out above, (ii) the sublease is expressly
subject and subordinate to the terms of the Schedule, (iii) Lessee assigns its
rights in the sublease to Lessor and the Secured Party, as additional
collateral and security, (iv) Lessee's obligation to maintain and insure the
Equipment is not altered, (v) all financing statements required to continue the
Secured Party's prior perfected security interest are filed, and (vi) Lessee
executes sublease documents acceptable to Lessor.

No relocation or sublease will relieve Lessee from any of its obligations under
this Master Lease and the Relevant Schedule.

5.3 ASSIGNMENT BY LESSOR. The terms and conditions of each Schedule have been
??d by Lessor in order to permit Lessor to sell and/or assign or transfer its
interest or grant a security interest in each Schedule and/or the Equipment to
a Secured Party or Assignee. In that event, the term Lessor will mean the
Assignee and any Secured Party. However, any assignment, sale, or other transfer
by Lessor will not relieve Lessor of its obligations to Lessee and will not
materially change Lessee's duties or materially increase the burdens or risks
imposed on Lessee. The Lessee consents to and will acknowledge such assignments
in a written notice given to Lessee. Lessee also agrees that:

(a)  The Secured Party will be entitled to exercise all of Lessor's rights, but
will not be obligated to perform any of the obligations of Lessor. The Secured
Party will not disturb Lessee's quiet and peaceful possession and unrestricted
use of the Equipment so long as Lessee is not in default and the Secured Party
continues to receive all Rent payable under the Schedule; and

(b)  Lessee will pay all Rent and all other amounts payable to the Secured
Party, despite any defense or claim which it has against Lessor. Lessee
reserves its right to have recourse directly against Lessor for any defense or
claim;

(c)  Subject to and without impairment of Lessee's leasehold rights in the
Equipment, Lessee holds the Equipment for the Secured Party to the extent of
the Secured Party's rights in that Equipment.

6. NET LEASE; TAXES AND FEES.

6.1 NET LEASE. Each Summary Equipment Schedule constitutes a net lease.
Lessee's obligation to pay Rent and all other amounts due hereunder is absolute
and unconditional and is not subject to any abatement, reduction, set-off,
defense, counterclaim, interruption, deferment or recoupment for any reason
whatsoever.

6.2 TAXES AND FEES. Lessee will pay when due or reimburse Lessor for all taxes,
fees or any other charges (together with any related interest or penalties not
arising from the negligence of Lessor) accrued for or arising during the term
of each Summary Equipment Schedule against Lessor, Lessee or the Equipment by
any governmental authority (except only Federal, state, local and franchise
taxes on the capital or the net income of Lessor). Lessor will file all
personal property tax returns for the Equipment and pay all such property taxes
due. Lessee will reimburse Lessor for property taxes within thirty (30) days of
receipt of an invoice.

7. CARE, USE AND MAINTENANCE; INSPECTION BY LESSOR.

7.1 CARE, USE AND MAINTENANCE. Lessee will maintain the Equipment in good
operating order and appearance, protect the Equipment from deterioration, other
than normal wear and tear, and will not use the Equipment for any purpose other
than that for which it was designed. If commercially available and considered
common business practice for each item of Equipment, Lessee will maintain in
force a standard maintenance contract with the manufacturer of the Equipment,
or another party acceptable to Lessor, and will provide Lessor with a complete
copy of that contract. If Lessee has the Equipment maintained by a party other
than the manufacturer or self maintains, Lessee agrees to pay any costs
necessary for the manufacturer to bring the Equipment to then current release,
revision and engineering change levels, and to re-certify the Equipment as
eligible for manufacturer's maintenance at the expiration of the lease term,
provided re-certification is available and is required by Lessor. The lease
term will continue upon the same terms and conditions until recertification has
been obtained.

7.2 INSPECTION BY LESSOR. Upon reasonable advance notice, Lessee, during
reasonable business hours and subject to Lessee's security requirements, will
make the Equipment and its related log and maintenance records available to
Lessor for inspection.

8. REPRESENTATIONS AND WARRANTIES OF LESSEE. Lessee hereby represents, warrants
and covenants that with respect to the Master Lease and each Schedule executed
hereunder:

(a)  The Lessee is a corporation duly organized and validly existing in good
standing under the laws of the jurisdiction of its incorporation, is duly
qualified to do business in each jurisdiction (including the jurisdiction where
the Equipment is, or is to be, located) where its ownership or lease of property
or the conduct of its business requires such qualification, except for where
such lack of qualification would not have a material adverse effect on the
Company's business; and has full corporate power and authority to hold property
under the Master Lease and each Schedule and to enter into and perform its
obligations under the Master Lease and each Schedule.

(b)  The execution and delivery by the Lessee of the Master Lease and each
Schedule and its performance thereunder have been duly authorized by all
necessary corporate action on the part of the Lessee, and the Master Lease and
each Schedule are not inconsistent with the Lessee's Articles of Incorporation
or Bylaws, do not

                                      -1-

<PAGE>   2
contravene any law or governmental rule, regulation or order applicable to it,
do not and will not contravene any provision of, or constitute a default under,
any indenture, mortgage, contract or other instrument to which it is a party or
by which it is bound, and ??? Master Lease and each Schedule constitute legal,
valid and binding agreements of the Lessee, enforceable in accordance with their
terms, subject to the effect of applicable bankruptcy and other similar laws
affecting the rights of creditors generally and rules of law concerning
equitable remedies.

(c)     There are no actions, suits, proceedings or patent claims pending or,
to the knowledge of the Lessee, threatened against or affecting the Lessee in
any court or before any governmental commission, board or authority which, if
adversely determined, will have a material adverse effect on the ability of the
Lessee to perform its obligations under the Master Lease and each Schedule.

(d)     The Equipment is personal property and when subjected to use by the
Lessee will not be or become fixtures under applicable law.

(e)     the Lessee has no material liabilities or obligations, absolute or
contingent (individually or in the aggregate), except the liabilities and
obligations of the Lessee as set forth in the Financial Statements and
liabilities and obligations which have occurred in the ordinary course of
business, and which have not been, in any case or in the aggregate, materially
adverse to Lessee's ongoing business.

(f)     To the best of the Lessee's knowledge, the Lessee owns, possesses, has
access to, or can become licensed on reasonable terms under all patents, patent
applications, trademarks, trade names, inventions, franchises, licenses,
permits, computer software and copyrights necessary for the operations of its
business as now conducted, with no known infringement of, or conflict with, the
rights of others.

(g)     All material contracts, agreements and instruments to which the Lessee
is a party are in full force and effect in all material respects, and are valid,
binding and enforceable by the Lessee in accordance with their respective terms,
subject to the effect of applicable bankruptcy and other similar laws affecting
the rights of creditors generally, and rules of law concerning equitable
remedies.

9.      DELIVERY AND RETURN OF EQUIPMENT.

Lessee hereby assumes the full expense of transportation and in-transit
insurance to Lessee's premises and installation thereof of the Equipment. Upon
termination (by expiration or otherwise) of each Summary Equipment Schedule,
Lessee shall, pursuant to Lessor's instructions and at Lessee's full expense
(including, without limitation, expenses of transportation and in-transit
insurance), return the Equipment to Lessor in the same operating order, repair,
condition and appearance as when received, less normal depreciation and wear
and tear. Lessee shall return the Equipment to Lessor at 6111 North River Road,
Rosemont, Illinois 60018 or at such other address within the continental United
States as directed by Lessor, provided, however, that Lessee's expense shall be
limited to the cost of returning the Equipment to Lessor's address as set forth
herein. During the period subsequent to receipt of a notice under Section 2,
Lessor may demonstrate the Equipment's operation in place and Lessee will
supply any of its personnel as may reasonably be required to assist in the
demonstrations.

10.     LABELING.

Upon request, Lessee will mark the Equipment indicating Lessor's interest with
labels provided by Lessor. Lessee will keep all Equipment free from any other
marking or labelling which might be interpreted as a claim of ownership.

11.     INDEMNITY.

With regard to bodily injury and property damage liability only, Lessee will
indemnify and hold Lessor, any Assignee and any Secured Party harmless from and
against any and all claims, costs, expenses, damages and liabilities, including
reasonable attorneys' fees, arising out of the ownership (for strict liability
in tort only), selection, possession, leasing, operation, control, use,
maintenance, delivery, return or other disposition of the Equipment during the
term of this Master Lease or until Lessee's obligations under the Master Lease
terminate. However, Lessee is not responsible to a party indemnified hereunder
for any claims, costs, expenses, damages and liabilities occasioned by the
negligent acts of such indemnified party. Lessee agrees to carry bodily injury
and property damage liability insurance during the term of the Master Lease in
amounts and against risks customarily insured against by the Lessee on
equipment owned by it. Any amounts received by Lessor under that insurance will
be credited against Lessee's obligations under this Section.

12.     RISK OF LOSS.

Effective upon delivery and until the Equipment is returned, Lessee relieves
Lessor of responsibility for all risk of physical damage to or loss or
destruction of the Equipment. Lessee will carry casualty insurance for each item
of Equipment in an amount not less than the Casualty Value. All policies for
such insurance will name the Lessor and any Secured Party as additional insured
and as loss payee, and will provide for at least thirty (30) days prior written
notice to the Lessor of cancellation or expiration, and will insure Lessor's
interests regardless of any breach or violation by Lessee of any
representation, warranty or condition contained in such policies and will be
primary without right of contribution from any insurance effected by Lessor.
Upon the execution of any Schedule, the Lessee will furnish appropriate
evidence of such insurance acceptable to Lessor.

Lessee will promptly repair any damaged item of Equipment unless such Equipment
has suffered a Casualty Loss. Within fifteen (15) days of a Casualty Loss,
Lessee will provide written notice of that loss to Lessor and Lessee will, at
Lessee's option, either (a) replace the item of Equipment with Like Equipment
and marketable title to the Like Equipment will automatically vest in Lessor or
(b) pay the Casualty Value and after that payment and the payment of all other
amounts due and owing with respect to that item of Equipment, Lessee's
obligation to pay further Rent for the item of Equipment will cease.

13.     DEFAULT, REMEDIES AND MITIGATION.

13.1  DEFAULT.  The occurrence of any one or more of the following Events of
Default constitutes a default under a Summary Equipment Schedule:

(a)     Lessee's failure to pay Rent or other amounts payable by Lessee when due
if that failure continues for five (5) business days after written notice; or

(b)     Lessee's failure to perform any other term or condition of the Schedule
or the material inaccuracy of any representation or warranty made by the Lessee
in the Schedule or in any document or certificate furnished to the Lessor
hereunder if that failure or inaccuracy continues for ten (10) business days
after written notice; or

(c)     An assignment by Lessee for the benefit of its creditors, the failure
by Lessee to pay its debts when due, the insolvency of Lessee, the filing by
Lessee or the filing against Lessee of any position under any bankruptcy or
insolvency law or for the appointment of a trustee or other officer with
similar powers, the adjudication of Lessee as insolvent, the liquidation of
Lessee, or the taking of any action for the purpose of the foregoing; or

(d)     The occurrence of an Event of Default under any Schedule, Summary
Equipment Schedule or other agreement between Lessee and Lessor or its Assignee
or Secured Party.

13.2  REMEDIES.  Upon the occurrence of any of the above Events of Default,
Lessor, at its option, may:

(a)     enforce Lessee's performance of the provisions of the applicable
Schedule by appropriate court action in law or in equity;

(b)     recover from Lessee any damages and or expenses, including Default
Costs;

(c)     with notice and demand, recover all sums due and accelerate and recover
the present value of the remaining payment stream of all Rent due under the
defaulted Schedule (discounted at the same rate of interest at which such
defaulted Schedule was discounted with a Secured Party plus any prepayment fees
charged to Lessor by the Secured Party or, if there is no Secured Party, then
discounted at 6%) together with all Rent and other amounts currently due as
liquidated damages and not as a penalty;

(d)     with notice and process of law and in compliance with Lessee's security
requirements, Lessor may enter on Lessee's premises to remove and repossess the
Equipment without being liable to Lessee for damages due to the repossession,
except those resulting from Lessor's, its assignees', agents' or
representatives' negligence; and

(e)     pursue any other remedy permitted by law or equity.

The above remedies, in Lessor's discretion and to the extent permitted by law,
are cumulative and may be exercised successively or concurrently.

13.3  MITIGATION.  Upon return of the Equipment pursuant to the terms of
Section 13.2, Lessor will use its best efforts in accordance with its normal
business procedures (and without obligation to give any priority to such
Equipment) to mitigate Lessor's damages as described below. EXCEPT AS SET FORTH
IN THIS SECTION, LESSEE HEREBY WAIVES ANY RIGHTS NOW OR HEREAFTER CONFERRED BY
STATUTE OR OTHERWISE WHICH MAY REQUIRE LESSOR TO MITIGATE ITS DAMAGES OR MODIFY
ANY OF LESSOR'S RIGHTS OR REMEDIES STATED HEREIN. Lessor may sell, lease or
otherwise dispose of all or any part of the Equipment at a public or private
sale for cash or credit with the privilege of purchasing the Equipment. The
proceeds from any sale, lease or other disposition of the Equipment are defined
as either:

(a)     if sold or otherwise disposed of, the cash proceeds less the Fair
Market Value of the Equipment at the expiration of the Initial Term less the
Default Costs; or

                                     - 2 -
<PAGE>   3
(b)   if leased, the present value (discounted at 3 percent (3%) over the U.S.
Treasury Notes of comparable maturity to the term of the re-lease) of the
rentals for a term not to exceed the Initial Term, less the Default Costs.

Any proceeds will be applied against liquidated damages and any other sums due
to Lessor from Lessee. However, Lessee is liable to Lessor for, and Lessor may
recover, the amount by which the proceeds are less than the liquidated damages
and other sums due to Lessor from Lessee.

14.   ADDITIONAL PROVISIONS.

14.1  BOARD ATTENDANCE. One representative of Lessor will have the right to
attend Lessee's corporate Board of Directors meetings and Lessee will give
Lessor reasonable notice in advance of any special Board of Directors meeting,
which notice will provide an agenda of the subject matter to be discussed at
such board meeting. Lessee will provide Lessor with a certified copy of the
minutes of each Board of Directors meeting within thirty (30) days following the
date of such meeting held during the term of this Master Lease.

14.2  FINANCIAL STATEMENTS. As soon as practicable at the end of each month (and
in any event within thirty (30) days). Lessee will provide to Lessor the same
information which Lessee provides to its Board of Directors, but which will
include not less than a monthly income statement, balance sheet and statement of
cash flows prepared in accordance with generally accepted accounting principles,
consistently applied (the "Financial Statements"). As soon as practicable at
the end of each fiscal year, Lessee will provide to Lessor audited Financial
Statements setting forth in comparative form the corresponding figures for the
fiscal year (and in any event within ninety (90) days), and accompanied by an
audit report and opinion of the independent certified public accountants
selected by Lessee. Lessee will promptly furnish to Lessor any additional
information (including, but not limited to, tax returns, income statements,
balance sheets and names of principal creditors) as Lessor reasonably believes
necessary to evaluate Lessee's continuing ability to meet financial obligations.
After the effective date of the initial registration statement covering a public
offering of Lessee's securities, the term "Financial Statements" will be deemed
to refer to only those statements required by the Securities and Exchange
Commission.

14.3  OBLIGATION TO LEASE ADDITIONAL EQUIPMENT. Upon notice to Lessee, Lessor
will not be obligated to lease any Equipment which would have a Commencement
Date after said notice if: (i) Lessee is in default under this Master Lease or
any Schedule; (ii) Lessee is in default under any loan agreement, the result of
which would allow the lender or any secured party to demand immediate payment of
any material indebtedness; (iii) there is a material adverse change in Lessee's
credit standing; or (iv) Lessor determines (in reasonable good faith) that
Lessee will be unable to perform its obligations under this Master Lease or any
Schedule.

14.4  MERGER AND SALE PROVISIONS. Lessee will notify Lessor of any proposed
Merger at least sixty (60) days prior to the closing date. Lessor may, in its
discretion, either (i) consent to the assignment of the Master Lease and all
relevant Schedules to the successor entity, or (ii) terminate the Lease and all
relevant Schedules. If Lessor elects to consent to the assignment, Lessee and
its successor will sign the assignment documentation provided by Lessor. If
Lessor elects to terminate the Master Lease and all relevant Schedules, then
Lessee will pay Lessor all amounts then due and owing and a termination fee
equal to the present value (discounted at 6%) of the remaining Rent for the
balance of the Initial Term(s) of all Schedules, and will return the Equipment
in accordance with Section 9. Lessor hereby consents to any Merger in which the
surviving entity has a Moody's Bond Rating of BA3 or better or a commercially
acceptable equivalent measure of creditworthiness as reasonably determined by
Lessor.

14.5  ENTIRE AGREEMENT. This Master Lease and associated Schedules and Summary
Equipment Schedules supersede all other oral or written agreements or
understandings between the parties concerning the Equipment including, for
example, purchase orders. ANY AMENDMENT OF THIS MASTER LEASE OR A SCHEDULE, MAY
ONLY BE ACCOMPLISHED BY A WRITING SIGNED BY THE PARTY AGAINST WHOM THE
AMENDMENT IS SOUGHT TO BE ENFORCED.

14.6  NO WAIVER. No action taken by Lessor or Lessee will be deemed to
constitute a waiver of compliance with any representation, warranty or covenant
contained in this Master Lease or a Schedule. The waiver by Lessor or Lessee of
a breach of any provision of this Master Lease or a Schedule will not operate
or be construed as a waiver of any subsequent breach.

14.7  BINDING NATURE. Each Schedule is binding upon, and inures to the benefit
of Lessor and its assigns. LESSEE MAY NOT ASSIGN ITS RIGHTS OR OBLIGATIONS.

14.8  SURVIVAL OF OBLIGATIONS. All agreements, obligations including, but not
limited to those arising under Section 6.2, representations and warranties
contained in this Master Lease, any Schedule, Summary Equipment Schedule or in
any document delivered in connection with those agreements are for the benefit
of Lessor and any Assignee or Secured Party and survive the execution, delivery,
expiration or termination of this Master Lease.

14.9  NOTICES. Any notice, request or other communication to either party by the
other will be given in writing and deemed received upon the earlier of (1)
actual receipt or (2) three days after mailing if mailed postage prepaid by
regular or airmail to Lessor (to the attention of "the Comdisco Venture Group")
or Lessee, at the address set out in the Schedule, (3) one day after it is sent
by courier or (4) on the same day as sent via facsimile transmission, provided
that the original is sent by personal delivery or mail by the sending party.

14.10 APPLICABLE LAW. THIS MASTER LEASE HAS BEEN AND EACH SCHEDULE WILL HAVE
BEEN MADE, EXECUTED AND DELIVERED IN THE STATE OF ILLINOIS AND WILL BE GOVERNED
AND CONSTRUED FOR ALL PURPOSES IN ACCORDANCE WITH THE LAWS OF THE STATE OF
ILLINOIS WITHOUT GIVING EFFECT TO CONFLICT OF LAW PROVISIONS. NO RIGHTS OR
REMEDIES REFERRED TO IN ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE WILL BE
CONFERRED ON LESSEE UNLESS EXPRESSLY GRANTED IN THIS MASTER LEASE OR A SCHEDULE.

14.11 SEVERABILITY. If any one or more of the provisions of this Master Lease or
any Schedule is for any reason held invalid, illegal or unenforceable, the
remaining provisions of this Master Lease and any such Schedule will be
unimpaired and the invalid, illegal or unenforceable provision replaced by a
mutually acceptable valid, legal and enforceable provision that is closest to
the original intention of the parties.

14.12 COUNTERPARTS. This Master Lease and any Schedule may be executed in any
number of counterparts, each of which will be deemed an original, but all such
counterparts together constitute one and the same instrument. If Lessor grants a
security interest in all or any part of a Schedule, the Equipment or sums
payable thereunder, only that counterpart Schedule marked "Secured Party's
Original" can transfer Lessor's rights and all other counterparts will be marked
"Duplicate."

14.13 LICENSED PRODUCTS. Lessee will obtain no title to Licensed Products which
will at all times remain the property of the owner of the Licensed Products. A
license from the owner may be required and it is Lessee's responsibility to
obtain any required license before the use of the Licensed Products. Lessee
agrees to treat the Licensed Products as confidential information of the owner,
to observe all copyright restrictions, and not to reproduce or sell the Licensed
Products.

14.14 SECRETARY'S CERTIFICATE. Lessee will, upon execution of this Master Lease,
provide Lessor with a secretary's certificate of incumbency and authority. Upon
the execution of each Schedule with a purchase price in excess of $1,000,000,
Lessee will provide Lessor with an opinion from Lessee's counsel in a form
acceptable to Lessor regarding the representations and warranties in Section 8.

14.15 ELECTRONIC COMMUNICATIONS. Each of the parties may communicate with the
other by electronic means under mutually agreeable terms.

14.16 LANDLORD/MORTGAGEE WAIVER. Lessee agrees to provide Lessor with a
Landlord/Mortgagee Waiver with respect to the Equipment. Such waiver shall be in
a form satisfactory to Lessor.

14.17 EQUIPMENT PROCUREMENT CHARGES/PROGRESS PAYMENTS. Lessee hereby agrees that
Lessor shall not, by virtue of its entering into this Master Lease, be required
to remit any payments to any manufacturer or other third party until Lessee
accepts the Equipment subject to this Master Lease.

14.18 DEFINITIONS.

ADVANCE - means the amount due to Lessor by Lessee upon Lessee's execution of
each Schedule.

ASSIGNEE - means an entity to whom Lessor has sold or assigned its rights as
owner and Lessor of Equipment.

CASUALTY LOSS - means the irreparable loss or destruction of Equipment.

CASUALTY VALUE - means the greater of the aggregate Rent remaining to be paid
for the balance of the lease term or the Fair Market Value of the Equipment
immediately prior to the Casualty Loss. However, if a Casualty Value Table is
attached to the relevant Schedule its terms will control.

COMMENCEMENT DATE - is defined in each Schedule.

DEFAULT COSTS - means reasonable attorney's fees and remarketing costs resulting
from a Lessee default or Lessor's enforcement of its remedies.

DELIVERY DATE - means date of delivery of Inventory Equipment to Lessee's
address.

EQUIPMENT - means the property described on a Summary Equipment Schedule and any
replacement for that property required or permitted by this Master Lease or a
Schedule.

EVENT OF DEFAULT - means the events described in Subsection 13.1

                                      -3-

<PAGE>   4
FAIR MARKET VALUE - means the aggregate amount which would be obtainable in an
arms-length transaction between an informed and willing buyer/user and an
informed and willing seller under no compulsion to sell.

INITIAL TERM - means the period of time beginning on the first day of the first
full Rent Interval following the Commencement Date for all items of Equipment
and continuing for the number of Rent Intervals indicated on a Schedule.

INTERIM RENT - means the pro-rata portion of Rent due for the period from the
Commencement Date through but not including the first day of the first full
Rent Interval included in the Initial Term.

LATE CHARGE - means the lesser of five percent (5%) of the payment due or the
maximum amount permitted by the law of the state where the Equipment is located.

LICENSED PRODUCTS - means any software or other licensed products attached to
the Equipment.

LIKE EQUIPMENT - means replacement Equipment which is lien free and of the same
model, type, configuration and manufacture as Equipment.

MERGER - means any consideration or merger of the Lessee with or into any other
corporation or entity, any sale or conveyance of all or substantially all of
the assets or stock of the Lessee by or to any other person or entity in which
Lessee is not the surviving entity.

NOTICE PERIOD - means not less than ninety (90) days nor more than twelve (12)
months prior to the expiration of the lease term.

OWNER - means the owner of Equipment.

RENT - means the rent Lessee will pay for each item of Equipment expressed in
a Summary Equipment Schedule either as a specific amount or an amount equal to
the amount which Lessor pays for an item of Equipment multiplied by a lease
rate factor plus all other amounts due to Lessor under the Master Lease or a
Schedule.

RENT INTERVAL - means a full calendar month or quarter as indicated on a
Schedule.

SCHEDULE - means either an Equipment Schedule or a Licensed Products Schedule
which incorporates all of the terms and conditions of this Master Lease.

SECURED PARTY - means an entity to whom Lessor has granted a security interest
for the purpose of securing a loan.

SUMMARY EQUIPMENT SCHEDULE - means a certificate provided by Lessor summarizing
all of the Equipment for which Lessor has received Lessee approved vendor
invoices, purchase documents and/or evidence of delivery during a calendar
quarter which will incorporate all of the terms and conditions of the related
Schedule and this Master Lease and will constitute a separate lease for the
equipment lease thereunder.

IN WITNESS WHEREOF, the parties hereto have executed this Master Lease on or as
of the day and year first above written.

WEBRIDGE                                COMDISCO, INC.,
as Lessee                               as Lessor

By: /s/ DAVID L. BRINKER                By: /s/ JAMES LABE
   -------------------------------         -------------------------------

Title:     CFO                          Title: President,
      ----------------------------             Comdisco Ventures Division
                                              ----------------------------

                                      -4-

<PAGE>   5
                            EQUIPMENT SCHEDULE VL-1
                         DATED AS OF SEPTEMBER 24, 1999
                           TO MASTER LEASE AGREEMENT
              DATED AS OF SEPTEMBER 24, 1999 (THE "MASTER LEASE")

<TABLE>
<S>                                          <C>
LESSEE: WEBRIDGE, INC.                       LESSOR: COMDISCO, INC.

ADMIN. CONTACT/PHONE NO.:                    ADDRESS FOR ALL NOTICES:
------------------------                     -----------------------
Contact: Dave Brinker                        6111 North River Road
TEL: 503-219-8500                            Rosemont, Illinois 60018
FAX: 503-219-9191                            Attn.: Venture Group

Address for Notices:
-------------------
225 SW Broadway, Suite 500
Portland OR 97205

Central Billing Location:                    Rent Interval: Monthly
------------------------                     -------------
same as above

Attn.:

Lessee Reference No.:
                     -------------------
                     (24 digits maximum)

Location of Equipment:                       Initial Term: 36 months
---------------------                        ------------
same as above                                (Number of Rent Intervals)

Attn.:                                       Lease Rate Factor: 3.091%
                                             -----------------

EQUIPMENT (as defined below):                Advance: None
                                             -------
</TABLE>

Equipment specifically approved by Lessor, which shall be delivered to and
accepted by Lessee during the period September 24, 1999 through September 24,
2000 ("Equipment Delivery Period"), for which Lessor receives vendor invoices
approved for payment, up to an aggregate purchase price of $425,000 ("Commitment
Amount"); excluding custom use equipment, leasehold improvements, installation
costs and delivery costs, rolling stock, special tooling, "stand-alone"
software, application software bundled into computer hardware, hand held items,
molds and fungible items.
<PAGE>   6
1.   EQUIPMENT PURCHASE

     This Schedule contemplates Lessor's acquisition of Equipment for lease to
Lessee, either by one of the first three categories listed below or by
providing Lessee with Equipment from the fourth category, in an aggregate value
up to the Commitment Amount referred to on the face of this Schedule. If the
Equipment acquired is of category (i), (ii), (iii) below, the effectiveness of
this Schedule as it relates to those items of Equipment is contingent upon
Lessee's acknowledgement at the time Lessor acquires the Equipment that Lessee
has either received or approved the relevant purchase documentation between
vendor and Lessor for that Equipment.

     (i)   NEW ON-ORDER EQUIPMENT. Lessor will purchase new Equipment which is
           obtained from a vendor by Lessee for its use subject to Lessor's
           prior approval of the Equipment.

     (ii)  SALE-LEASEBACK EQUIPMENT. Any in-place Equipment installed at
           Lessee's site and to which Lessee has clear title and ownership may
           be considered by Lessor for inclusion under this Lease (the
           "Sale-Leaseback Transaction"). Any request for a Sale-Leaseback
           Transaction must be submitted to Lessor in writing (along with
           accompanying evidence of Lessee's Equipment ownership satisfactory to
           Lessor for all Equipment submitted) no later than October 24, 1999*.
           Lessor will not perform a Sale-Leaseback Transaction for any request
           or accompanying Equipment ownership documents which arrive after the
           date marked above by an asterisk (*). Further, any sale-leaseback
           Equipment will be placed on lease subject to: (1) Lessor prior
           approval of the Equipment; and (2) if approved, at Lessor's actual
           net appraised Equipment value pursuant to the schedule below:

           ORIGINAL EQUIPMENT INVOICE    PERCENT OF ORIGINAL MANUFACTURER'S
                    DATE                NET EQUIPMENT COST PAID BY LESSOR
           --------------------------    ---------------------------------

            Between 01/01/99-10/24/99               100%

     (iii) USED ON-ORDER EQUIPMENT. Lessor will purchase used Equipment which
           is obtained from a third party by Lessee for its use subject to
           Lessor's prior approval of the Equipment and at Lessor's appraised
           value for such used Equipment.

     (iv)  800 NUMBER EQUIPMENT. Upon Lessee's use of Comdisco's 1-800 Direct
           Service, Lessor will purchase new or used Equipment from a third
           party or Lessor will supply new or used Equipment from its inventory
           for use by Lessee at rates provided by Lessor.

2.   COMMENCEMENT DATE

     The Commencement Date for each item of new on-order or used on-order
Equipment will be the install date as confirmed in writing by Lessee as set
forth on the vendor invoice of which a facsimile transmission will constitute an
original document. The Commencement Date for sale-leaseback Equipment shall be
the date Lessor tenders the purchase price. The Commencement Date for 800 Number
Equipment shall be fifteen (15) days from the ship date, such ship date to be
set forth on the vendor invoice or if unavailable on the vendor invoice the ship
date will be determined by Lessor upon other supporting shipping documentation.
Lessor will summarize all approved invoices, purchase documentation and evidence
of delivery, as applicable, received in the same calendar quarter into a Summary
Equipment Schedule in the form attached to this Schedule as Exhibit 1, and the
Initial Term will begin the first day of the calendar quarter thereafter. Each
Summary Equipment Schedule will contain the Equipment location, description,
serial number(s) and cost and will incorporate the terms and conditions of the
Master Lease and this Schedule and will constitute a separate lease.

                                       2

<PAGE>   7
3.   OPTION TO EXTEND

     So long as no Event of Default has occurred and is continuing hereunder,
and upon written notice no earlier than twelve (12) months and no later than
ninety (90) days prior to the expiration of the Initial Term of a Summary
Equipment Schedule, Lessee will have the right to extend the Initial Term of
such Summary Equipment Schedule for a period of one (1) year. In such event,
the rent to be paid during said extended period shall be mutually agreed upon
and if the parties cannot mutually agree, then the Summary Equipment Schedule
shall continue in full force and effect pursuant to the existing terms and
conditions until terminated in accordance with its terms. The Summary Equipment
Schedule will continue in effect following said extended period until
terminated by either party upon not less than ninety (90) days prior written
notice, which notice shall be effective as of the date of receipt.

4.   PURCHASE OPTION

     So long as no Event of Default has occurred and is continuing hereunder,
and upon written notice no earlier than twelve (12) months and no later than
ninety (90) days prior to the expiration of the Initial Term or the extended
term of the applicable Summary Equipment Schedule, Lessee will have the option
at the expiration of the Initial Term of the Summary Equipment Schedule to
purchase all, but not less than all, of the Equipment listed therein for a
purchase price not to exceed 15% of Lessor's cost hereunder and upon terms and
conditions to be mutually agreed upon by the parties following Lessee's written
notice, plus any taxes applicable at time of purchase. Said purchase price
shall be paid to Lessor at least thirty (30) days before the expiration date of
the Initial Term or extended term. Title to the Equipment shall automatically
pass to Lessee upon payment in full of the purchase price but, in no event,
earlier than the expiration of the fixed Initial Term or extended term, if
applicable. If the parties are unable to agree on the purchase price or the
terms and conditions with respect to said purchase, then the Summary Equipment
Schedule with respect to this Equipment shall remain in full force and effect.
Notwithstanding the exercise by Lessee of this option and payment of the
purchase price, until all obligations under the applicable Summary Equipment
Schedule have been fulfilled, it is agreed and understood that Lessor shall
retain a purchase money security interest in the Equipment listed therein and
the Summary Equipment Schedule shall constitute a Security Agreement under the
Uniform Commercial Code of the state in which the Equipment is located.

5.   TECHNOLOGY EXCHANGE OPTION

     If Lessee is not in default, and there is no material adverse change in
Lessee's credit, on or after the expiration of the 12th month of any Summary
Equipment Schedule, Lessee shall have the option to replace any of the
Equipment subject to such summary Equipment Schedule with new technology
equipment ("New Technology Equipment") utilizing the following guidelines:

A.  Equipment being replaced with New Technology Equipment shall have an
aggregate original cost equal to or greater than $20,000 and be comprised of
full configurations of equipment.

B.  This technology Exchange Option shall be limited to a maximum in the
aggregate of fifty percent (50%) of the original equipment cost and shall not
apply to software or any soft costs financed hereunder including but not
limited to tenant improvements and custom equipment.

C.  The cost of the New Technology Equipment must be equal to or greater than
the original equipment cost of the replacement equipment, but in no event shall
exceed 150% of the original equipment cost.

D.  The remaining lease payments applicable to the equipment being replaced by
the New Technology Equipment will be discounted to present value at 6%.

The wholesale market value of the equipment being replaced will be established
by Comdisco based upon then current market conditions. Upon the return of the
replaced equipment, the wholesale price will be deducted from the present value
of the remaining rentals and the differential will be added to the cost of the
New Technology Equipment in calculating the new rental. The lease for the New
Technology Equipment will contain terms and conditions substantially similar to
those for the replaced equipment and will have an Initial Term not less than
the balance of the remaining Initial Term for the replaced equipment.

6.   EQUITY INVESTMENT

Lease grants Lessor the right to invest up $100,000 in the next round of equity
financing anticipated to be the Series C Preferred Stock financing at the
purchase price determined by the lead investor. Lessee shall deliver a notice
to Lessor by confirmed facsimile transmission, certified mail or a nationally
recognized overnight courier service stating the anticipated closing date for
such equipment.

                                       3
<PAGE>   8
financing, and the price and summary of the terms for the equity financing.
Lessor may exercise its right to invest by giving a written election to Lessee
that is received by Lessee within ten business days after the date of Lessee's
notice. If Lessor's election to invest is not received by Lessee within such
ten day period, this right to invest shall automatically terminate. The right
provided in this Section 6 shall automatically terminate at the earlier of (a)
the consummation of the sale of securities pursuant to a registration statement
filed by the Lessee under the Securities Act of 1933 as amended, in connection
with the firm commitment underwritten offering of its securities to the general
public, (b) the date when Lessee first becomes subject to periodic reporting
requirements of Section 12(g) or 15(d) of the Securities Exchange Act of 1934
as amended, or (c) the consummation of the sale of the Company's next round of
equity financing, anticipated to be Series C Preferred Stock.

7.    SPECIAL TERMS

      The terms and conditions of the Lease as they pertain to this Schedule
are hereby modified and amended as follows:

Master Lease: This Schedule is issued pursuant to the Lease identified on page
1 of this Schedule. All of the terms and conditions of the Lease are
incorporated in and made a part of this Schedule as if they were expressly set
forth in this Schedule. The parties hereby reaffirm all of the terms and
conditions of the Lease (including, without limitation, the representations and
warranties set forth in Section 8) except as modified herein by this Schedule.
This Schedule may not be amended or rescinded except by a writing signed by
both parties.

      WEBRIDGE, INC.                      COMDISCO, INC.
      AS LESSEE                           AS LESSOR

      By: /s/ [SIGNATURE ILLEGIBLE]       By: /s/ JAMES L????
         ----------------------------        -------------------------------

      Title:  CFO                         Title:  James L????, President,
            -------------------------             Comdisco Ventures Division
                                                ----------------------------

      Date:   10/11/99                    Date:
           --------------------------          -----------------------------

<PAGE>   9
                                   EXHIBIT 1

                           SUMMARY EQUIPMENT SCHEDULE

     This Summary Equipment Schedule dated XXXX is executed pursuant to
Equipment Schedule No. X to the Master Lease Agreement dated XXXX between
Comdisco, Inc. ("Lessor") and XXXX ("Lessee"). All of the terms, conditions,
representations and warranties of the Master Lease Agreement and Equipment
Schedule No. X are incorporated herein and made a part hereof, and this Summary
Equipment Schedule constitutes a Schedule for the Equipment on the attached
invoices.

1.   For Period Beginning:              And Ending:

2.   Initial Term Starts on:            Initial Term:
                                        (Number of Rent Intervals)
3.   Total Summary Equipment Cost:

4.   Lease Rate Factor:

5.   Rent:

6.   Acceptance Doc Type:

                                       5
<PAGE>   10

                            EQUIPMENT SCHEDULE VL-2
                         DATED AS OF SEPTEMBER 24, 1999
                           TO MASTER LEASE AGREEMENT
              DATED AS OF SEPTEMBER 24, 1999 (THE "MASTER LEASE")

LESSEE: WEBRIDGE, INC.                  LESSOR: COMDISCO, INC.

Admin. Contact/Phone No.:               Address for all Notices:
David Brinker                           6111 North River Road
Phone: 503-219-8500                     Rosemont, Illinois 60018
Fax: 503-219-9191                       Attn.: Venture Group

Address for Notices:
225 SW Broadway, Suite 500
Portland, OR 97205

Central Billing Location:               Rent Interval: Monthly
same as above

Attn:

Lessee Reference No.: ________
    (24 digits maximum)

Location of Equipment:                  Initial Term: 36 months
same as above                           (Number of Rent Intervals)

Attn.:                                  Lease Rate Factor: 3.091%

EQUIPMENT (as defined below):           Advance: None

Software and tenant improvements specifically approved by Lessor, which shall
be delivered to and accepted by Lessee during the period September 24, 1999
through September 24, 2000 ("Equipment Delivery Period") for which Lessor
receives vendor invoices approved for payment, up to an aggregate purchase
price of $75,000* ("Commitment Amount"); excluding custom use equipment,
installation costs and delivery costs, rolling stock, special tooling, hand
held items, molds and fungible items.

                                       1

<PAGE>   11
1.     EQUIPMENT PURCHASE

       This Schedule contemplates Lessor's acquisition of Equipment for lease
to Lessee, either by one of the first three categories listed below or by
providing Lessee with Equipment from the fourth category, in an aggregate value
up to the Commitment Amount referred to on the face of this Schedule. If the
Equipment acquired is of category (i), (ii), (iii) below, the effectiveness of
this Schedule as it relates to those items of Equipment is contingent upon
Lessee's acknowledgment at the time Lessor acquires the Equipment that Lessee
has either received or approved the relevant purchase documentation between
vendor and Lessor for that Equipment.

       (i)     NEW ON-ORDER EQUIPMENT. Lessor will purchase new Equipment which
               is obtained from a vendor by Lessee for its use subject to
               Lessor's prior approval of the Equipment.

       (ii)    SALE-LEASEBACK EQUIPMENT. Any in-place Equipment installed at
               Lessee's site and to which Lessee has clear title and ownership
               may be considered by Lessor for inclusion under this Lease (the
               "Sale-Leaseback Transaction"). Any request for a Sale-Leaseback
               Transaction must be submitted to Lessor in writing (along with
               accompanying evidence of Lessee's Equipment ownership
               satisfactory to Lessor for all Equipment submitted) no later
               than October 24, 1999*. Lessor will not perform a Sale-Leaseback
               Transaction for any request or accompanying Equipment ownership
               documents which arrive after the date marked above by an
               asterisk (*). Further, any sale-leaseback Equipment will be
               placed on lease subject to: (1) Lessor prior approval of the
               Equipment; and (2) if approved, at Lessor's actual net appraised
               Equipment value pursuant to the schedule below:

<TABLE>
               <S>                            <C>
               ORIGINAL EQUIPMENT INVOICE     PERCENT OF ORIGINAL MANUFACTURER'S
                          DATE                NET EQUIPMENT COST PAID BY LESSOR
                    ---------------           ---------------------------------

               Between 01/01/99-10/24/99                     100%
</TABLE>

       (iii)   USED ON-ORDER EQUIPMENT. Lessor will purchase used Equipment
               which is obtained from a third party by Lessee for its use
               subject to Lessor's prior approval of the Equipment and at
               Lessor's appraised value for such used Equipment.

       (iv)    800 NUMBER EQUIPMENT. Upon Lessee's use of Comdisco's 1-800
               Direct Service, Lessor will purchase new or used Equipment from
               a third party or Lessor will supply new or used Equipment from
               its inventory for use by Lessee at rates provided by Lessor.

2.     COMMENCEMENT DATE

       The Commencement Date for each item of new on-order or used on-order
Equipment will be the install date as confirmed in writing by Lessee as set
forth on the vendor invoice of which a facsimile transmission will constitute
an original document. The Commencement Date for sale-leaseback Equipment shall
be the date Lessor tenders the purchase price. The Commencement Date for 800
Number Equipment shall be fifteen (15) days from the ship date, such ship date
to be set forth on the vendor invoice or if unavailable on the vendor invoice
the ship date will be determined by Lessor upon other supporting shipping
documentation. Lessor will summarize all approved invoices, purchase
documentation and evidence of delivery, as applicable, received in the same
calendar quarter into a Summary Equipment Schedule in the form attached to this
Schedule as Exhibit 1, and the Initial Term will begin the first day of the
calendar quarter thereafter. Each Summary Equipment Schedule will contain the
Equipment location, description, serial number(s) and cost and will incorporate
the terms and conditions of the Master Lease and this Schedule and will
constitute a separate lease.

3.     MISCELLANEOUS

       In consideration of Lessor financing software and tenant improvements
hereunder, Lessee agrees in addition to its last Monthly Rent Payment to remit
to Lessor an amount equal to 15% of Lessor's aggregate cost of software and
tenant improvements provided hereunder.

4.     SPECIAL TERMS

       The terms and conditions of the Lease as they pertain to this Schedule
are hereby modified and amended as follows:

                                       2
<PAGE>   12
     (a)  Section 9, Delivery and Return of Equipment

     Delete second, third and fourth sentences in their entirety.

Master Lease: This Schedule is issued pursuant to the Lease identified on page
1 of this Schedule. All of the terms and conditions of the Lease are
incorporated in and made a part of this Schedule as if they were expressly set
forth in this Schedule. The parties hereby reaffirm all of the terms and
conditions of the Lease (including, without limitation, the representations and
warranties set forth in Section 8) except as modified herein by this Schedule.
This Schedule may not be amended or rescinded except by a writing signed by
both parties.

          WEBRIDGE, INC.                COMDISCO, INC.
          as Lessee                     as Lessor

        By: /s/ [Signature Illegible]   By: /s/ [Signature Illegible]
           --------------------------      --------------------------------
                                        Title: James [Illegible], President
        Title: CFO                             Comdisco Ventures Division
              -----------------------          ----------------------------
        Date: 10/11/99                  Date: October 15, 1999
              -----------------------        ------------------------------

                                       3
<PAGE>   13
                                   EXHIBIT 1

                           SUMMARY EQUIPMENT SCHEDULE

     This Summary Equipment Schedule dated XXXX is executed pursuant to
Equipment Schedule No. X to the Master Lease Agreement dated XXXX between
Comdisco, Inc. ("Lessor") and XXXX ("Lessee"). All of the terms, conditions,
representations and warranties of the Master Lease Agreement and Equipment
Schedule No. X are incorporated herein and made a part hereof, and this Summary
Equipment Schedule constitutes a Schedule for the Equipment on the attached
invoices.

1.   For Period Beginning:              And Ending:

2.   Initial Term Starts on:            Initial Term:
                                        (Number of Rent Intervals)

3.   Total Summary Equipment Cost:

4.   Lease Rate Factor:

5.   Rent:

6.   Acceptance Doc Type:

                                       4

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