Document:

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                                                                   EXHIBIT 10.11

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                AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
                              INVENTA CORPORATION

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                               TABLE OF CONTENTS

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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................................................................................. 6

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......................................................................... 7
     5.8 Full Disclosure...................................................................... 7

6 AFFIRMATIVE COVENANTS....................................................................... 8
  ---------------------
     6.1 Government Compliance................................................................ 8
     6.2 Financial Statements, Reports, Certificates.......................................... 8
     6.3 Inventory; Returns................................................................... 8
     6.4 Taxes................................................................................ 8
     6.5 Insurance............................................................................ 9
     6.6 Primary Accounts..................................................................... 9
     6.7 Financial Covenants.................................................................. 9
     6.8 Further Assurances................................................................... 9

7 NEGATIVE COVENANTS.......................................................................... 9
  ------------------
     7.1 Dispositions......................................................................... 9
     7.2 Changes in Business, Ownership, Management or Business Locations.....................10
     7.3 Mergers or Acquisitions..............................................................10
     7 4 Indebtedness.........................................................................10
     7.5 Encumbrance..........................................................................10
     7.6 Distributions; Investments...........................................................10
     7.7 Transactions with Affiliates.........................................................10
     7.8 Subordinated Debt....................................................................10
     7.9 Compliance...........................................................................10

8 EVENTS OF DEFAULT...........................................................................11
  -----------------
     8.1 Payment Default......................................................................11
     8.2 Covenant Default.....................................................................11
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     8.3 Material Adverse Change..............................................................11
     8.4 Attachment...........................................................................11
     8.5 Insolvency...........................................................................11
     8.6 Other Agreements.....................................................................11
     8.7 Judgments............................................................................12
     8.8 Misrepresentations...................................................................12

9 BANK'S RIGHTS AND REMEDIES..................................................................12
  --------------------------
    9.1 Rights and Remedies...................................................................12
    9.2 Power of Attorney.....................................................................12
    9.3 Accounts Collection...................................................................13
    9.4 Bank Expenses.........................................................................13
    9.5 Bank's Liability for Collateral.......................................................13
    9.6 Remedies Cumulative...................................................................13
    9.7 Demand Waiver.........................................................................13

10 NOTICES....................................................................................13
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11 CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER.................................................13
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12 GENERAL PROVISIONS.........................................................................14
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     12.1 Successors and Assigns..............................................................14
     12.2 Indemnification.....................................................................14
     12.3 Time of Essence.....................................................................14
     12.4 Severability of Provision...........................................................14
     12.5 Amendments in Writing, Integration..................................................14
     12.6 Counterparts........................................................................14
     12.7 Survival............................................................................14
     12.8 Confidentiality.....................................................................15
     12.9 Effect of Amendment and Restatement.................................................15
     12.10 Attorneys' Fees, Costs and Expenses................................................15

13 DEFINITIONS................................................................................15
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     13.1 Definitions.........................................................................15
</TABLE>

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     This AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT dated August 19,
1998, between SILICON VALLEY BANK ("Bank"), whose address is 3003 Tasman Drive,
Santa Clara, California 95054 and INVENTA CORPORATION ("Borrower"), whose
address is 2620 Augustine Drive, Santa Clara, California 95054.

                                   RECITALS

     A. Bank and Borrower are parties to that certain Promissory Note, Business
Loan Agreement, and Commercial Security Agreement, each dated May 30, 1995, as
amended and that certain Promissory Note dated July 27, 1998 (collectively, the
"Original Agreement").

     B. Borrower and Bank desire in this Agreement to set forth their agreement
with respect to a working capital and equipment 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, whichever is less, 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 reliance.

     (c) The Committed Revolving Line terminates on the Revolving Maturity Date,
when all Advances and other amounts due under this Agreement are immediately
payable.

                                       4
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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 and any Letter of Credit Reserve) may not exceed $250,000.
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.

2.1.3  Equipment Advances.

     (a) Through July 27, 1999 (the "Equipment Availability End Date"), Bank
will continue to make advances ("Equipment Advance" and, collectively,
"Equipment Advances") not exceeding the Committed Equipment Line. The Equipment
Advances may only be used to finance Equipment and may not exceed 100% of the
equipment invoice excluding taxes, shipping, warranty charges, freight discounts
and installation expense. Software may constitute up to 25% of the aggregate
Equipment Advances. Each Equipment Advance must be for a minimum of $10,000.

     (b) Interest continues to accrue from the date of each Equipment Advance at
the rate in Section 2.3(a) and is payable monthly until the Equipment
Availability End Date occurs. Equipment Advances outstanding on the Equipment
Availability End Date are payable in 36 equal monthly installments of principal,
plus accrued interest, beginning on the 27th of each month following the
Equipment Availability End Date and ending on July 27, 2002 (the "Equipment
Maturity Date"). Equipment Advances when repaid may not be reborrowed.

     (c) To obtain an Equipment Advance, Borrower must notify Bank (the notice
is irrevocable) by facsimile no later than 3:00 p.m. Pacific time 1 Business Day
before the day on which the Equipment Advance is to be made. The notice in the
form of Exhibit B (Payment/Advance Form) must be signed by a Responsible Officer
or designee and include a copy of the invoice for the Equipment being financed.

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 0.75 percentage point above the Prime
Rate; and (ii) Equipment Advances accrue interest on the outstanding principal
balance 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 18th of each month. Interest due on the Equipment Advances is payable on the
27th of each month. Bank may debit any of Borrower's deposit accounts including
Account Number 273056170 for principal and interest payments or any amounts
Borrower owes Bank. Bank will 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.

                                       5
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2.4  Fees.

     Borrower will pay:

     (a) Facility Fee. A fully earned, non-refundable Facility Fee of $3,600 for
the Committed Revolving Line due on the Closing Date; and

     (b) Bank Expenses. All Bank Expenses (including reasonable attorneys' fees
and 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.

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.

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.

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

                                       6
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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.

5.3  Litigation.

     Except as shown in the Schedule, there are no actions or proceedings
pending or, to Borrower's knowledge, threatened by or against Borrower or any
Subsidiary in which an adverse decision could 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 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 G, T and U of the Federal Reserve Board of Governors). Borrower has
complied with the Federal Fair Labor Standards Act. Borrower has not violated
any laws, ordinances or rules, the violation of which could 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 substance other than legally. Borrower and each Subsidiary has
timely filed all required tax returns and paid, or made adequate provision to
pay, all 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 to continue
its business as currently conducted.

5.7  Subsidiaries.

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

5.8  Full Disclosure.

     No representation, warranty or other statement of Borrower in any
certificate or written statement given 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.

                                       7
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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 could have 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 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 90 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
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; and (iv) budgets, sales
projections, operating plans or other financial information Bank requests.

     (b) 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.

     (c) Within 30 days after the last day of each month, Borrower will deliver
to Bank with the monthly financial statements a Compliance Certificate signed by
a Responsible Officer in the form of Exhibit D.

     (d) At such times as outstanding Advances exist, or prior to an Advance if
no outstanding Advances exist (provided an Accounts audit has not been conducted
within the last 6 months) Bank has the right to audit Borrower's Accounts at
Borrower's expense, but the audits will be conducted no more often than every 6
months unless an Event of Default has occurred and is continuing.

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.

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6.5  Insurance.

     Borrower will keep its business and the Collateral insured for risks and in
amounts, as Bank requests. 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.

6.6  Primary Accounts.

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

6.7  Financial Covenants.

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

          (i)       Quick Ratio. A ratio of Quick Assets to Current Liabilities
of at least 1.75 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 1.25 to 1.00.

          (iii)     Liquidity Coverage. Maintain unrestricted cash (and
equivalents) plus net availability under the Committed Revolving Line of not
less than 2 times outstanding Equipment Advances. Upon Borrower achieving 6
consecutive months of Debt Service Coverage of at least 2.00 to 1.00, the
Liquidity Coverage will be replaced with a Debt Service Coverage ratio of at
least 2.00 to 1.00.

          (iv)      Debt Service Coverage (if applicable). Maintain Debt Service
Coverage of at least 2.00 to 1.00 at such time as Borrower has complied with the
provisions as set forth in (iii) above.

     (v) Profitability. Borrower will be profitable each quarter, except that
Borrower may suffer losses, provided such losses do not exceed $600,000 for the
quarter ended June 30, 1998; $350,000 for the quarter ending September 30, 1998.

6.8  Further Assurances.

     Borrower will execute any further instruments and take further action as
Bank 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:

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.

                                       9
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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 have a material change
in its ownership 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.

     (i) Merge or consolidate, or permit any of its Subsidiaries to merge or
consolidate, with any other Person, or acquire, or permit any of its
Subsidiaries to acquire, all or substantially all of the capital stock or
property of another Person, provided 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; or (ii) merge
or consolidate a Subsidiary 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  Encumbrance.

     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.

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 any dividends or make any distribution or payment or redeem,
retire or purchase any capital stock.

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 Advance for that purpose; fail 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 have a
material adverse effect on Borrower's business or operations or cause a Material
Adverse Change, or permit any of its Subsidiaries to do so.

                                       10
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8    EVENTS OF DEFAULT
     -----------------

     Any one of the following is an Event of Default:

8.1  Payment Default.

     If Borrower fails to pay any of the Obligations;

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 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;

                                       11
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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

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; 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 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

                                       12
<PAGE>

occurred. Bank's appointment as Borrower's attorney in fact, and all of Bank's
rights and powers, 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  Accounts 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 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 rights 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.

11   CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER
     ------------------------------------------

     California law governs the Loan Documents without regard to principles of
conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of
the State and Federal courts in Santa Clara County, California.

                                       13
<PAGE>

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.

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.

                                       14
<PAGE>

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 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, guaranties, 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.

       "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 or
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.

                                       15
<PAGE>

     "Borrowing Base" is 80% of Eligible Accounts, (subject to Bank's receipt of
a satisfactory Accounts audit), 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 California Uniform Commercial Code.

     "Collateral" is the property described on Exhibit A.
                                               ---------

     "Committed Equipment Line" is a Credit Extension of up to $300,000.

     "Committed Revolving Line" is an Advance of up to $1,200,000.

     "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.

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

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

     "Debt Service Coverage" is net income plus depreciation and amortization
divided by interest expense for the previous 3 month period and the scheduled
principal payments due on Borrower's debt for the next 3 month period, all on a
rolling 3 month basis.

     "Eligible Accounts" are Accounts in the ordinary course of Borrower's
business that meet all Borrower's representations and warranties in Section 5.2;
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 the amounts that
     exceed that percentage, unless the Bank approves in writing;

                                       16
<PAGE>

     (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 instrumentality;

     (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.

     "Equipment Advance" is defined in Section 2.1.3.

     "Equipment Availability End Date" is defined in Section 2.1.3.

     "Equipment Maturity Date" is defined in Section 2.1.3.

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

     "GAAP" is generally accepted accounting principles.

     "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 Proceeding" 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,
arrangement, or other relief.

     "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.

                                       17
<PAGE>

     "Letter of Credit" is defined in Section 2.

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

     "Loan 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, extended or restated.

     "Material Adverse Change" is defined in Section 8.3.

     "Obligations" are debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, including letters of credit and
Exchange Contracts 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.

     "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 certificates 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 acquired 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;

                                       18
<PAGE>

     (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 or 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.

     "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 18, 1999.

     "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 plus Subordinated Debt.
                      ---

     "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.

BORROWER:

INVENTA CORPORATION

By:  /s/ [ILLEGIBLE]^^
     -------------------------------
Title:  President
       -----------------------------

                                       19
<PAGE>

BANK:

SILICON VALLEY BANK

By:_________________________________

Title:______________________________

                                       20
<PAGE>

                                   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 to 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.

                                       21
<PAGE>

                                   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:____________________

FAX#: (408) 496-2426                              TIME:____________________

--------------------------------------------------------------------------------
FROM: INVENTA CORPORATION
     ---------------------------------------------------------------------------
                            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 true, correct and complete in all material respects
on the date of the telephone request for and Advance confirmed by this Borrowing
Certificate; but those representations and warranties expressly referring to
another date shall be true, correct and 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)
--------------------------------------------------------------------------------

                                       22
<PAGE>

                                   EXHIBIT C
                           BORROWING BASE CERTIFICATE

--------------------------------------------------------------------------------

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

Commitment Amount: $1,200,000

--------------------------------------------------------------------------------

<TABLE>
<S>                                                             <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                                            $ ________________
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 #15, subject to satisfactory Accounts audit)          $ ________________

BALANCES
17.  Maximum Loan Amount                                        $ ________________
18.  Total Funds Available [Lesser 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)                                             $ ________________
</TABLE>

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
INVENTA CORPORATION
                                                         Rec'd By:____________
                                                                  Auth. Singer
By: ____________________________
       Authorized Signer                                 Date: _______________

                                                         Verified:____________
                                                                  Auth. Singer

                                                         Date:________________
                                                         _____________________
                                                         ---------------------

                                       23
<PAGE>

                                   EXHIBIT D
                            COMPLIANCE CERTIFICATE

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

FROM:  INVENTA CORPORATION

     The undersigned authorized officer of INVENTA CORPORATION ("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.

     Reporting Covenant                  Required                  Complies
     ------------------                  --------                  --------
     Monthly financial statements + CC   Monthly within 30 days    Yes   No
     Annual (Audited)                    FYE within 90 days        Yes   No
     A/R & AP Agings                     Monthly within 20 days    Yes   No
     Borrowing Base Certificate          Monthly within 20 days    Yes   No

     Financial Covenant                  Required      Actual      Complies
     ------------------                  --------      ------      --------
     Maintain on a Monthly Basis:
      Minimum Quick Ratio                1.75:1.00     _____:1.00  Yes   No
      Maximum Debt/Tangible Net Worth    1.25:1.00     _____:1.00  Yes   No
      Minimum Liquidity *                2x outstanding Equipment  Advances
      Minimum Debt Service Coverage *    2.00:1.00     _____:1.00  Yes   No
                                         Quarterly     $           Yes   No
     Profitability:
              Losses not to exceed:      $600,000 for the quarter
                                         ended 6/30/98             Yes   No
                                         $350,000 for the quarter
                                         ending 9/30/98

* Upon Borrower's achievement of 6 consecutive months of Debt Service Coverage
of at least 2.00 to 1.00, the minimum Liquidity covenant shall be replaced with
a Debt Service Coverage ratio of at least 2.00 to 1.00. Debt Service Coverage
shall be defined as, net income plus depreciation and amortization divided by
interest expense for the previous 3 month period and the scheduled principal
payments due on Borrower's debt for the next 3 month period, all on a rolling 3
month basis.

                                       24
<PAGE>

Comments Regarding Exceptions: See Attached.   ------------------------------

Sincerely,                                               BANK USE ONLY

INVENTA CORPORATION                            Received By:_________________
                                                           AUTHORIZED SIGNER
________________________________
SIGNATURE                                      Date:________________________

________________________________               Verified:____________________
TITLE                                                      AUTHORIZED SIGNER

________________________________               Date:________________________
DATE
                                               Compliance Status:    Yes  No
                                               ------------------------------

                                      2
<PAGE>

                              SILICON VALLEY BANK

                      PRO FORMA INVOICE FOR LOAN CHARGES

BORROWER:           INVENTA CORPORATION

LOAN OFFICER:       Tim Walsh

DATE:               August 19, 1998

                    Revolving Loan Fee          $3,600.00

                    Documentation Fee              350.00

                    TOTAL FEE DUE               $3,950.00
                                                =========

Please indicate the method of payment:

     ( ) A check for the total amount is attached.

     ( ) Debit DDA # ______________ for the total amount.

     ( ) Loan proceeds

Borrower:

By: /s/ [ILLEGIBLE]^^
-----------------------------------
   (Authorized Signer)

___________________________________
Silicon Valley Bank          (Date)
Account Officer's Signature
<PAGE>

                        CORPORATE BORROWING RESOLUTION

Borrower:  INVENTA CORPORATION          Bank:  Silicon Valley Bank
           2620 Augustine Drive                3003 Tasman Drive
           Santa Clara, CA 95054               Santa Clara, CA 95054-1191

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

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:

          NAMES                 POSITIONS                  ACTUAL SIGNATURES
          -----                 ---------                  -----------------

     /s/ [ILLEGIBLE]^^       PRESIDENT
------------------------   -----------------------    __________________________

     /s/ [ILLEGIBLE]^^       CONTROLLER               /s/ [ILLEGIBLE]^^
------------------------   ------------------------   --------------------------

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 Documents. 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 or 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 derived 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.
<PAGE>

     Foreign Exchange Contracts. To execute and deliver foreign contracts,
     either spot or forward, from time to time, in such amount as, in the
     judgment of the officer or officers herein authorized.

     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 performs 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 to 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 19, 1998 and attest
that the signatures set opposite the names listed above are their genuine
signatures.

CERTIFIED AND ATTESTED BY:

X /s/ [ILLEGIBLE]^^
 ---------------------------------------
 Secretary or Assistant Secretary

X /s/ [ILLEGIBLE]^^
 ---------------------------------------

*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>

   THIS STATEMENT is presented for filing pursuant to the California Uniform
                                Commercial Code

<TABLE>
<S>                               <C>                                     <C>                          <C>
------------------------------------------------------------------------------------------------------------------------------------
1.  FILE NO. OF ORIG. FINANCING   1A. DATE OF FILING OF ORIG. FINANCING   1B. DATE OF ORIG. FINANCING  1C. PLACE OF FILING ORIG.
    STATEMENT                          STATEMENT                               STATEMENT                    FINANCING STATEMENT
     92054928                                    3/18/92                                                       CALIFORNIA
-----------------------------------------------------------------------------------------------------------------------------------
2.  DEBTOR (LAST NAME FIRST)                                                                           2A. SOCIAL SECURITY NO.,
     INVENTA CORPORATION                                                                                    FEDERAL TAX NO.
------------------------------------------------------------------------------------------------------------------------------------
2B. MAILING ADDRESS                                                       2C. CITY, STATE                              2D. ZIP CODE
    2620 Augustine Drive, Suite 225                                           Santa Clara, CA                               95054
------------------------------------------------------------------------------------------------------------------------------------
3.  ADDITIONAL DEBTOR (IF ANY) (LAST NAME FIRST)                                                       3A. SOCIAL SECURITY OR
                                                                                                           FEDERAL TAX NO.
------------------------------------------------------------------------------------------------------------------------------------
3B. MAILING ADDRESS                                                       3C. CITY, STATE                              3D. ZIP CODE

------------------------------------------------------------------------------------------------------------------------------------
4.  SECURED PARTY                                                                              4A. SOCIAL SECURITY NO., FEDERAL TAX
                                                                                                    NO. BANK TRANSIT AND A.B.A. NO.
     NAME   SILICON VALLEY BANK
     MAILING ADDRESS   3003 Tasman Drive
     CITY   Santa Clara                               STATE   CA          ZIP CODE  95054
------------------------------------------------------------------------------------------------------------------------------------
5.  ASSIGNEE OF SECURED PARTY (IF ANY)                                                         5A. SOCIAL SECURITY NO., FEDERAL TAX
                                                                                                   NO. BANK TRANSIT AND A.B.A. NO.
     NAME
     MAILING ADDRESS
     CITY                                             STATE               ZIP CODE
------------------------------------------------------------------------------------------------------------------------------------
6.  A [_]  CONTINUATION - The original Financing Statement between the foregoing Debtor and Secured Party bearing the file number
           and date shown above is continued. If collateral is crops or timber, check here [_] and insert description of real
           property on which growing or to be grown in Item 7 below
      ------------------------------------------------------------------------------------------------------------------------------
    B [_]  RELEASE- From the collateral described in the Financing Statement bearing the file number shown above, the Secured Party
           releases the collateral described in item 7 below.
      ------------------------------------------------------------------------------------------------------------------------------
    C [_]  ASSIGNMENT- The Secured Party certifies that the Secured Party has assigned to the Assignee above named, the Secured
           Party's rights under the Financing Statement bearing the file number shown above in the collateral described in item 7
           below.
      ------------------------------------------------------------------------------------------------------------------------------
    D [_]  TERMINATION- The Secured Party certifies that the Secured Party no longer claims a security interest under Financing
           Statement bearing the file number shown above.
      ------------------------------------------------------------------------------------------------------------------------------
    E [X]  AMENDMENT- The Financing Statement bearing the file number shown above is amended as set forth in item 7 below.
           (Signature of Debtor required on all amendments.)
      ------------------------------------------------------------------------------------------------------------------------------
    F [_]  OTHER
------------------------------------------------------------------------------------------------------------------------------------
7.  Amend Collateral to include Exhibit "A" attached hereto

------------------------------------------------------------------------------------------------------------------------------------
                                   trans 3371                                              C    9. This Space Use of Filing Officer
INVENTA CORPORATION                            (Date)_______ 19___                         O             (Date, Time, Filing Office)
                                                                                           D
                                                                                           E
                                                                                         ------
-----------------------------------------------------------------------------------------  1
By:    /s/ [ILLEGIBLE]^^                                            President
     ------------------------------------------------------------------------------------  2
         SIGNATURE(S) OF DEBTOR(S)                 111/tmw           (TITLE)
                                                                                           3
SILICON VALLEY BANK
                                                                                           4
-----------------------------------------------------------------------------------------
                                                                                           5
By: _____________________________________________________________________________________
                                                                                           6
-----------------------------------------------------------------------------------------
                   SIGNATURE(S) OF SECURED PARTY(IES)                 (TITLE)              7
-----------------------------------------------------------------------------------------
                              Return Copy to                                               8
NAME              Data File Services, Inc.
ADDRESS           P.O. Box 275                                                             9
CITY AND          Van Nuys
STATE             CA
                  91408-2750

(1) FLING OFFICER COPY
</TABLE>
<PAGE>

                                   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 to 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>

<TABLE>
                    THIS STATEMENT is presented for filing pursuant to the California Uniform  Commercial Code

<S>                                            <C>                             <C>                       <C>
---------------------------------------------------------------------------------------------------------------------------------
1.  FILE NO. OF ORIG. FINANCING STATEMENT      1A. DATE OF FILING OF           1B. DATE OF ORIG.         1C. PLACE OF FILING
                                                   ORIG. FINANCING                 FINANCING                 ORIG. FINANCING
                                                   STATEMENT                       STATEMENT                 STATEMENT

    92054928                                          3/18/92                                                CALIFORNIA
---------------------------------------------------------------------------------------------------------------------------------
2.  DEBTOR (LAST NAME FIRST)                                                                             2A. SOCIAL SECURITY
    INVENTA CORPORATION                                                                                      NO., FEDERAL TAX NO.

---------------------------------------------------------------------------------------------------------------------------------
2B. MAILING ADDRESS                                        2C. CITY, STATE                               2D. ZIP CODE
    2620 Augustine Drive, Suite 225                            Santa Clara, CA                               95054
---------------------------------------------------------------------------------------------------------------------------------
3.  ADDITIONAL DEBTOR (IF ANY) (LAST NAME FIRST)                                                         3A. SOCIAL SECURITY OR
                                                                                                             FEDERAL TAX NO.
---------------------------------------------------------------------------------------------------------------------------------
3B. MAILING ADDRESS                                        3C. CITY, STATE                               3D. ZIP CODE

---------------------------------------------------------------------------------------------------------------------------------
4.  SECURED PARTY                                                                                        4A. SOCIAL SECURITY
                                                                                                             NO., FEDERAL TAX NO.
                                                                                                             BANK TRANSIT AND
                                                                                                             A.B.A. NO.
       NAME   SILICON VALLEY BANK

       MAILING ADDRESS  3003 Tasman Drive

       CITY    Santa Clara                                 STATE  CA                 ZIP CODE  95054
---------------------------------------------------------------------------------------------------------------------------------
5.  ASSIGNEE OF SECURED PARTY (IF ANY)                                                                   5A. SOCIAL SECURITY
                                                                                                             NO., FEDERAL TAX NO.
                                                                                                             BANK TRANSIT AND
                                                                                                             A.B.A. NO.
      NAME

      MAILING ADDRESS

      CITY                                                 STATE                     ZIP CODE
---------------------------------------------------------------------------------------------------------------------------------
6.  A [_] CONTINUATION - The original Financing Statement between the foregoing Debtor and Secured Party bearing the file number
          and date shown above is continued. If collateral is crops or timber, check here    [_] and insert description of real
          property on which growing or to be grown in Item 7 below
      ---------------------------------------------------------------------------------------------------------------------------
    B [_] RELEASE- From the collateral described in the Financing Statement bearing the file number shown above, the Secured
          Party releases the collateral described in item 7 below.
      ---------------------------------------------------------------------------------------------------------------------------
    C [_] Assignment- The Secured Party certifies that the Secured Party has assigned to the Assignee above named, the Secured
          Party's rights under the Financing Statement bearing the file number shown above in the collateral described in item 7
          below.
      ---------------------------------------------------------------------------------------------------------------------------
    D [_] TERMINATION- The Secured Party certifies that the Secured Party no longer claims a security interest under Financing
          Statement bearing the file number shown above.
      ---------------------------------------------------------------------------------------------------------------------------
    E [X] AMENDMENT- The Financing Statement bearing the file number shown above is amended as set forth in item 7 below.
          (Signature of Debtor required on all amendments.)
      ---------------------------------------------------------------------------------------------------------------------------
    F [_] OTHER
      ---------------------------------------------------------------------------------------------------------------------------
7.  Amend Collateral to include Exhibit "A" attached hereto

---------------------------------------------------------------------------------------------------------------------------------
                                  trans 3371                                              C    9. This Space Use of Filing Officer
INVENTA CORPORATION                          (Date) _____________________ 19  __________  O          (Date, Time, Filing Office)
                                                                                          D
                                                                                          E
                                                                                        -----
---------------------------------------------------------------------------------------
                                                                                          1

                                                                                          2
By: ___________________________________________________________________________________
             SIGNATURE(S) OF DEBTOR(S)         1111/tmw           (TITLE)
SILICON VALLEY BANK                                                                       3
---------------------------------------------------------------------------------------
                                                                                          4
By: ___________________________________________________________________________________
             SIGNATURE(S) OF SECURED PARTY(IES)                   (TITLE)
---------------------------------------------------------------------------------------
                                                                                          5
                                  Return copy to

Name       Data File Services, Inc.                                                       6
Address    P.O Box 275
City and   Van Nuys                                                                       7
State      CA
           91408-2750                                                                     8

                                                Uniform Commercial Code - FORM UCC -2     9

(2) FLING OFFICER COPY - ACKNOWLEDGEMENT
</TABLE>

                                       31
<PAGE>

<TABLE>
                    THIS STATEMENT is presented for filing pursuant to the California Uniform  Commercial Code

<S>                                            <C>                             <C>                       <C>
---------------------------------------------------------------------------------------------------------------------------------
1.  FILE NO. OF ORIG. FINANCING STATEMENT      1A. DATE OF FILING OF           1B. DATE OF ORIG.         1C. PLACE OF FILING
                                                   ORIG. FINANCING                 FINANCING                 ORIG. FINANCING
                                                   STATEMENT                       STATEMENT                 STATEMENT

    92054928                                           3/18/92                                                CALIFORNIA
---------------------------------------------------------------------------------------------------------------------------------
2.  DEBTOR (LAST NAME FIRST)                                                                             2A. SOCIAL SECURITY
    INVENTA CORPORATION                                                                                      NO., FEDERAL TAX NO.

---------------------------------------------------------------------------------------------------------------------------------
2B. MAILING ADDRESS                                        2C. CITY, STATE                               2D. ZIP CODE
    2620 Augustine Drive, Suite 225                            Santa Clara, CA                               95054
---------------------------------------------------------------------------------------------------------------------------------
3.  ADDITIONAL DEBTOR (IF ANY) (LAST NAME FIRST)                                                         3A. SOCIAL SECURITY OR
                                                                                                             FEDERAL TAX NO.
---------------------------------------------------------------------------------------------------------------------------------
3B. MAILING ADDRESS                                        3C. CITY, STATE                               3D. ZIP CODE

---------------------------------------------------------------------------------------------------------------------------------
4.  SECURED PARTY                                                                                        4A. SOCIAL SECURITY
                                                                                                             NO., FEDERAL TAX NO.
                                                                                                             BANK TRANSIT AND
                                                                                                             A.B.A. NO.
       NAME   SILICON VALLEY BANK

       MAILING ADDRESS  3003 Tasman Drive

       CITY    Santa Clara                                 STATE  CA                 ZIP CODE  95054
---------------------------------------------------------------------------------------------------------------------------------
5.  ASSIGNEE OF SECURED PARTY (IF ANY)                                                                   5A. SOCIAL SECURITY
                                                                                                             NO., FEDERAL TAX NO.
                                                                                                             BANK TRANSIT AND
                                                                                                             A.B.A. NO.
      NAME

      MAILING ADDRESS

      CITY                                                 STATE                     ZIP CODE
---------------------------------------------------------------------------------------------------------------------------------
6.  A [_] CONTINUATION - The original Financing Statement between the foregoing Debtor and Secured Party bearing the file number
          and date shown above is continued. If collateral is crops or timber, check here    [_] and insert description of real
          property on which growing or to be grown in Item 7 below.
      ---------------------------------------------------------------------------------------------------------------------------
    B [_] RELEASE- From the collateral described in the Financing Statement bearing the file number shown above, the Secured
          Party releases the collateral described in item 7 below.
      ---------------------------------------------------------------------------------------------------------------------------
    C [_] Assignment- The Secured Party certifies that the Secured Party has assigned to the Assignee above named, the Secured
          Party's rights under the Financing Statement bearing the file number shown above in the collateral described in item 7
          below.
      ---------------------------------------------------------------------------------------------------------------------------
    D [_] TERMINATION- The Secured Party certifies that the Secured Party no longer claims a security interest under Financing
          Statement bearing the file number shown above.
      ---------------------------------------------------------------------------------------------------------------------------
    E [X] AMENDMENT- The Financing Statement bearing the file number shown above is amended as set forth in item 7 below.
          (Signature of Debtor required on all amendments.)
      ---------------------------------------------------------------------------------------------------------------------------
    F [_] OTHER
      ---------------------------------------------------------------------------------------------------------------------------
7.  Amend Collateral to include Exhibit "A" attached hereto

---------------------------------------------------------------------------------------------------------------------------------

                                  trans 3371                                              C    9. This Space Use of Filing Officer
INVENTA CORPORATION                          (Date) _____________________ 19  __________  O          (Date, Time, Filing Office)
                                                                                          D
                                                                                          E
                                                                                        -----
---------------------------------------------------------------------------------------
                                                                                          1

                                                                                          2
By: ___________________________________________________________________________________
             SIGNATURE(S) OF DEBTOR(S)         1111/tmw           (TITLE)
SILICON VALLEY BANK                                                                       3
---------------------------------------------------------------------------------------
                                                                                          4
By: ___________________________________________________________________________________
             SIGNATURE(S) OF SECURED PARTY(IES)                   (TITLE)
---------------------------------------------------------------------------------------
                                                                                          5
                                  Return copy to
Name       Data File Services, Inc.                                                       6
Address    P.O. Box 275
City and   Van Nuys                                                                       7
State      CA
           91408-2750                                                                     8

                                                Uniform Commercial Code - Form UCC-2      9
</TABLE>

FILE COPY - DEBTOR

<PAGE>

<TABLE>
                    THIS STATEMENT is presented for filing pursuant to the California Uniform  Commercial Code

<S>                                            <C>                             <C>                       <C>
---------------------------------------------------------------------------------------------------------------------------------
1.  FILE NO. OF ORIG. FINANCING STATEMENT      1A. DATE OF FILING OF           1B. DATE OF ORIG.         1C. PLACE OF FILING
                                                   ORIG. FINANCING                 FINANCING                 ORIG. FINANCING
                                                   STATEMENT                       STATEMENT                 STATEMENT

    92054928                                          3/18/92                                                CALIFORNIA
---------------------------------------------------------------------------------------------------------------------------------
2.  DEBTOR (LAST NAME FIRST)                                                                             2A. SOCIAL SECURITY
    INVENTA CORPORATION                                                                                      NO., FEDERAL TAX NO.

---------------------------------------------------------------------------------------------------------------------------------
2B. MAILING ADDRESS                                        2C. CITY, STATE                               2D. ZIP CODE
    2620 Augustine Drive, Suite 225                            Santa Clara, CA                               95054
---------------------------------------------------------------------------------------------------------------------------------
3.  ADDITIONAL DEBTOR (IF ANY) (LAST NAME FIRST)                                                         3A. SOCIAL SECURITY OR
                                                                                                             FEDERAL TAX NO.
---------------------------------------------------------------------------------------------------------------------------------
3B. MAILING ADDRESS                                        3C. CITY, STATE                               3D. ZIP CODE

---------------------------------------------------------------------------------------------------------------------------------
4.  SECURED PARTY                                                                                        4A. SOCIAL SECURITY
                                                                                                             NO., FEDERAL TAX NO.
                                                                                                             BANK TRANSIT AND
                                                                                                             A.B.A. NO.
       NAME   SILICON VALLEY BANK

       MAILING ADDRESS  3003 Tasman Drive

       CITY    Santa Clara                                 STATE  CA                 ZIP CODE  95054
---------------------------------------------------------------------------------------------------------------------------------
5.  ASSIGNEE OF SECURED PARTY (IF ANY)                                                                   5A. SOCIAL SECURITY
                                                                                                             NO., FEDERAL TAX NO.
                                                                                                             BANK TRANSIT AND
                                                                                                             A.B.A. NO.
      NAME

      MAILING ADDRESS

      CITY                                                 STATE                     ZIP CODE
---------------------------------------------------------------------------------------------------------------------------------
6.  A [_] CONTINUATION - The original Financing Statement between the foregoing Debtor and Secured Party bearing the file number
          and date shown above is continued. If collateral is crops or timber, check here    [_] and insert description of real
          property on which growing or to be grown in Item 7 below
      ---------------------------------------------------------------------------------------------------------------------------
    B [_] RELEASE- From the collateral described in the Financing Statement bearing the file number shown above, the Secured
          Party releases the collateral described in item 7 below.
      ---------------------------------------------------------------------------------------------------------------------------
    C [_] Assignment- The Secured Party certifies that the Secured Party has assigned to the Assignee above named, the Secured
          Party's rights under the Financing Statement bearing the file number shown above in the collateral described in item 7
          below.
      ---------------------------------------------------------------------------------------------------------------------------
    D [_] TERMINATION- The Secured Party certifies that the Secured Party no longer claims a security interest under Financing
          Statement bearing the file number shown above.
      ---------------------------------------------------------------------------------------------------------------------------
    E [X] AMENDMENT- The Financing Statement bearing the file number shown above is amended as set forth in item 7 below.
          (Signature of Debtor required on all amendments.)
      ---------------------------------------------------------------------------------------------------------------------------
    F [_] OTHER
      ---------------------------------------------------------------------------------------------------------------------------
7.  Amend Collateral to include Exhibit "A" attached hereto

---------------------------------------------------------------------------------------------------------------------------------
                                  trans 3371                                              C    9. This Space Use of Filing Officer
INVENTA CORPORATION                          (Date) _____________________ 19  __________  O          (Date, Time, Filing Office)
                                                                                          D
                                                                                          E
                                                                                        -----
---------------------------------------------------------------------------------------
                                                                                          1

                                                                                          2
By: ___________________________________________________________________________________
             SIGNATURE(S) OF DEBTOR(S)         1111/tmw           (TITLE)
SILICON VALLEY BANK                                                                       3
---------------------------------------------------------------------------------------
                                                                                          4
By: ___________________________________________________________________________________
             SIGNATURE(S) OF SECURED PARTY(IES)                   (TITLE)
---------------------------------------------------------------------------------------
                                                                                          5
                                  Return copy to
Name       Data File Services, Inc.                                                       6
Address    P.O Box 275
City and   Van Nuys                                                                       7
State      CA
           91408-2750                                                                     8

                                                Uniform Commercial Code - FORM UCC -2     9
(2) FLING OFFICER COPY - SECURED PARTY
</TABLE>

                                       33
<PAGE>

                                   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 to 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>

                         COMMERCIAL SECURITY AGREEMENT
================================================================================

Borrower:  INVENTA CORPORATION               Lender:  Silicon Valley Bank
           2620 Augustine Drive, Suite 225            Santa Clara Technology
           Santa Clara, CA 95054                      3000 Lakeside Drive
                                                      Santa Clara, CA 95054
================================================================================

THIS COMMERCIAL SECURITY AGREEMENT is entered into between INVENTA CORPORATION
(referred to below as "Grantor"); and Silicon Valley Bank (referred to below as
"Lender"). For valuable consideration, Grantor grants to Lender a security
interest in the Collateral to secure the Indebtedness and agrees that Lender
shall have the rights stated in this Agreement with respect to the Collateral,
in addition to all other rights which Lender may have by law.

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

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

  Collateral. The word "Collateral" means the following described property of
  Grantor, whether now owned or hereafter acquired, whether now existing or
  hereafter arising, and wherever located:

     Inventory, Chattel Paper, Accounts, Deposit Accounts, Contract Rights,
     Equipment, General Intangibles, Fixtures, Documents and Instruments

  In addition, the word "Collateral" includes all the following, whether now
  owned or hereafter acquired, whether now existing or hereafter arising, and
  wherever located:

     (a) All attachments, accessions, accessories, tools, parts, supplies,
     increases, and additions to and all replacements of and substitutions for
     any property described above.

     (b) All products and produce of any of the property described in this
     Collateral section.

     (c) All accounts, contract rights, general intangibles, instruments, rents,
     monies, payments, and all other rights, arising out of a sale, lease, or
     other disposition of any of the property described in this Collateral
     section.

     (d) All proceeds (including insurance proceeds) from the sale, destruction,
     loss, or other disposition of any of the property described in this
     Collateral section.

     (e) All records and data relating to any of the property described in this
     Collateral section, whether in the form of a writing, photograph,
     microfilm, microfiche, or electronic media, together with all of Grantor's
     right, title, and interest in and to all computer software required to
     utilize, create, maintain, and process any such records or data on
     electronic media.

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

  Grantor. The word "Grantor" means INVENTA CORPORATION, its successors and
  assigns.

  Guarantor. The word "Guarantor" means and includes without limitation each and
  all of the guarantors, sureties, and accommodation parties in connection with
  the Indebtedness.

  Indebtedness. The word "Indebtedness" means the indebtedness evidenced by the
  Note, including all principal and interest, together with all other
  indebtedness and costs and expenses for which Grantor is responsible under
  this Agreement or under any of the Related Documents.

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

  Note. The word "Note" means the notes, credit agreements or letters of credit
  in any principal amount from Borrower to Lender, together with all renewals
  of, extensions of, modifications of, refinancings of, consolidations of and
  substitutions for the notes, credit agreements, or letters of credit.

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

OBLIGATIONS OF GRANTOR. Grantor warrants and covenants to Lender as follows:

  Perfection of Security Interest. Grantor agrees to execute such financing
  statements and to take whatever other actions are requested by Lender to
  perfect and continue Lender's security interest in the Collateral. Upon
  request of Lender, Grantor will deliver to Lender any and all of the documents
  evidencing or constituting the Collateral, and Grantor will note Lender's
  interest upon any and all chattel paper if not delivered to Lender for
  possession by Lender. Grantor hereby appoints Lender as its irrevocable
  attorney-in-fact for the purpose of executing any documents necessary to
  perfect or to continue the security interest granted in this Agreement. Lender
  may at any time, and without further authorization from Grantor, file a
  carbon, photographic or other reproduction of any financing statement or of
  this Agreement for use as a financing statement. Grantor will reimburse Lender
  for all expenses for the perfection and the continuation of the perfection of
  Lender's security interest in the Collateral. Grantor promptly will notify
  Lender before any change in Grantor's name including any change to the assumed
  business names of Grantor. This is a continuing Security Agreement and will
  continue in effect even though all or any part of the Indebtedness is paid in
  full and even though for a period of time Grantor may not be indebted to
  Lender.

  No Violation. The execution and delivery of this Agreement will not violate
  any law or agreement governing Grantor or to which Grantor is a party, and its
  certificate or articles of incorporation and bylaws do not prohibit any term
  or condition of this Agreement.

  Enforceability of Collateral. To the extent the Collateral consists of
  accounts, contract fights, chattel paper, or general intangibles, the
  Collateral is enforceable in accordance with its terms, is genuine, and
  complies with applicable laws concerning form, content and manner of
  preparation and execution, and all persons appearing to be obligated on the
  Collateral have authority and capacity to contract and are in fact obligated
  as they appear to be on the Collateral.

  Location of the Collateral. Grantor, upon request of Lender, will deliver to
  Lender in form satisfactory to Lender a schedule of real properties and
  Collateral locations relating to Grantor's operations, including without
  limitation the following: (a) all real property owned or being purchased
<PAGE>

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                         COMMERCIAL SECURITY AGREEMENT
                                  (Continued)
================================================================================

by Grantor; (b) all real property being rented or leased by Grantor; (c) all
storage facilities owned, rented, leased, or being used by Grantor; and (d) all
other properties where Collateral is or may be located. Except in the ordinary
course of its business, Grantor shall not remove the Collateral from its
existing locations without the prior written consent of Lender.

Removal of Collateral. Grantor shall keep the Collateral (or to the extent the
Collateral consists of intangible property such as accounts, the records
concerning the Collateral) at Grantor's address shown above, or at such other
locations as are acceptable to Lender. Except in the ordinary course of its
business, including the sales of inventory, Grantor shall not remove the
Collateral from its existing locations without the prior written consent of
Lender. To the extent that the Collateral consists of vehicles, or other titled
property, Grantor shall not take or permit any action which would require
application for certificates of title for the vehicles outside the State of
California, without the prior written consent of Lender.

Transactions Involving Collateral. Except for inventory sold or accounts
collected in the ordinary course of Grantor's business, Grantor shall not sell,
offer to sell, or otherwise transfer or dispose of the Collateral. While Grantor
is not in default under this Agreement, Grantor may sell inventory, but only in
the ordinary course of its business and only to buyers who qualify as a buyer in
the ordinary course of business. A sale in the ordinary course of Grantor's
business does not include a transfer in partial or total satisfaction of a debt
or any bulk sale. Grantor shall not pledge, mortgage, encumber or otherwise
permit the Collateral to be subject to any lien, security interest, encumbrance,
or charge, other than the security interest provided for in this Agreement,
without the prior written consent of Lender. This includes security interests
even if junior in right to the security interests granted under this Agreement.
Unless waived by Lender, all proceeds from any disposition of the Collateral
(for whatever reason) shall be held in trust for Lender and shall not be
commingled with any other funds; provided however, this requirement shall not
constitute consent by Lender to any sale or other disposition. Upon receipt,
Grantor shall immediately deliver any such proceeds to Lender.

Title. Grantor represents and warrants to Lender that it holds good and
marketable title to the Collateral, free and clear of all liens and encumbrances
except for the lien of this Agreement. No financing statement covering any of
the Collateral is on file in any public office other than those which reflect
the security interest created by this Agreement or to which Lender has
specifically consented. Grantor shall defend Lender's rights in the Collateral
against the claims and demands of all other persons.

Collateral Schedules and Locations. Insofar as the Collateral consists of
inventory, Grantor shall deliver to Lender, as often as Lender shall require,
such lists, descriptions, and designations of such Collateral as Lender may
require to identify the nature, extent, and location of such Collateral. Such
information shall be submitted for Grantor and each of its subsidiaries or
related companies.

Maintenance and Inspection of Collateral. Grantor shall maintain all tangible
Collateral in good condition and repair. Grantor will not commit or permit
damage to or destruction of the Collateral or any part of the Collateral. Lender
and its designated representatives and agents shall have the right at all
reasonable times to examine, inspect, and audit the Collateral wherever located.
Grantor shall immediately notify Lender of all cases involving the return,
rejection, repossession, loss or damage of or to any Collateral; of any request
for credit or adjustment or of any other dispute arising with respect to the
Collateral; and generally of all happenings and events affecting the Collateral
or the value or the amount of the Collateral.

Taxes, Assessments and Liens. Grantor will pay when due all taxes, assessments
and liens upon the Collateral, its use or operation, upon this Agreement, upon
any promissory note or notes evidencing the Indebtedness, or upon any of the
other Related Documents. Grantor may withhold any such payment or may elect to
contest any lien if Grantor is in good faith conducting an appropriate
proceeding to contest the obligation to pay and so long as Lender's interest in
the Collateral is not jeopardized in Lender's sole opinion. If the Collateral is
subjected to a lien which is not discharged within fifteen (15) days, Grantor
shall deposit with Lender cash, a sufficient corporate surety bond or other
security satisfactory to Lender in an amount adequate to provide for the
discharge of the lien plus any interest, costs, attorneys' fees or other charges
that could accrue as a result of foreclosure or sale of the Collateral. In any
contest Grantor shall defend itself and Lender and shall satisfy any final
adverse judgment before enforcement against the Collateral. Grantor shall name
Lender as an additional obligee under any surety bond furnished in the contest
proceedings.

Compliance With Governmental Requirements. Grantor shall comply promptly with
all laws, ordinances, rules and regulations of all governmental authorities, now
or hereafter in effect, applicable to the ownership, production, disposition, or
use of the Collateral. Grantor may contest in good faith any such law, ordinance
or regulation and withhold compliance during any proceeding, including
appropriate appeals, so long as Lender's interest in the Collateral, in Lender's
opinion, is not jeopardized.

Hazardous Substances. Grantor represents and warrants that the Collateral never
has been, and never will be so long as this Agreement remains a lien on the
Collateral, used for the generation, manufacture, storage, transportation,
treatment, disposal, release or threatened release of any hazardous waste or
substance, as those terms are defined in the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section
9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of
1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act,
49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 49
U.S.C. Section 6901, et seq., Chapters 6.5 through 7.7 of Division 20 of the
California Health and Safety Code, Section 25100, et seq., or other applicable
state or Federal laws, rules, or regulations adopted pursuant to any of the
foregoing. The terms "hazardous waste" and "hazardous substance" shall also
include, without limitation, petroleum and petroleum by-products or any fraction
thereof and asbestos. The representations and warranties contained herein are
based on Grantor's due diligence in investigating the Collateral for hazardous
wastes and substances. Grantor hereby (a) releases and waives any future claims
against Lender for indemnity or contribution in the event Grantor becomes liable
for cleanup or other costs under any such laws, and (b) agrees to indemnify and
hold harmless Lender against any and all claims and losses resulting from a
breach of this provision of this Agreement. This obligation to indemnify shall
survive the payment of the Indebtedness and the satisfaction of this Agreement.

Maintenance of Casualty Insurance. Grantor shall procure and maintain all risks
insurance, including without limitation fire, theft and liability coverage
together with such other insurance as Lender may require with respect to the
Collateral, in form, amounts, coverages and basis reasonably acceptable to
Lender and issued by a company or companies reasonably acceptable to Lender.
Grantor, upon request of Lender, will deliver to Lender from time to time the
policies or certificates of insurance in form satisfactory to Lender, including
stipulations that coverages will not be cancelled or diminished without at least
ten (10) days' prior written notice to Lender and not including any disclaimer
of the insurer's liability for failure to give such a notice. Each insurance
policy also shall include an endorsement providing that coverage in favor of
Lender will not be impaired in any way by any act, omission or default of
Grantor or any other person. In connection with all policies covering assets in
which Lender holds or is offered a security interest, Grantor will provide
Lender with such loss payable or other endorsements as Lender may require. If
Grantor at any time fails to obtain or maintain any insurance as required under
this Agreement, Lender may (but shall not be obligated to) obtain such insurance
as Lender deems appropriate, including if it so chooses "single interest
insurance," which will cover only Lender's interest in the Collateral.

Application of Insurance Proceeds. Grantor shall promptly notify Lender of any
loss or damage to the Collateral. Lender may make proof of loss if Grantor fails
to do so within fifteen (15) days of the casualty. All proceeds of any insurance
on the Collateral, including accrued proceeds thereon, shall be held by Lender
as part of the Collateral. If Lender consents to repair or replacement of the
damaged or destroyed Collateral, Lender shall, upon satisfactory proof of
expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost
of repair or restoration. If Lender does not consent to repair or replacement of
the Collateral, Lender shall retain a sufficient amount of the proceeds to pay
all of the Indebtedness, and shall pay the balance to Grantor. Any proceeds
which have not been disbursed within six (6) months after their receipt and
<PAGE>

================================================================================

                         COMMERCIAL SECURITY AGREEMENT
                                  (Continued)

================================================================================

  which Grantor has not committed to the repair or restoration of the Collateral
  shall be used to repay the Indebtedness.

  Insurance Reserves. Lender may require Grantor to maintain with Lender
  reserves for payment of insurance premiums, which reserves shall be created by
  monthly payments from Grantor of a sum estimated by Lender to be sufficient to
  produce, at least fifteen (15) days before the premium due date, amounts at
  least equal to the insurance premiums to be paid. If fifteen (15) days before
  payment is due, the reserve funds are Insufficient, Grantor shall upon demand
  pay any deficiency to Lender. The reserve funds shall be held by Lender as a
  general deposit and shall constitute a non-interest-bearing account which
  Lender may satisfy by payment of the insurance premiums required to be paid by
  Grantor as they become due. Lender does not hold the reserve funds in trust
  for Grantor, and Lender is not the agent of Grantor for payment of the
  insurance premiums required to be paid by Grantor. The responsibility for the
  payment of premiums shall remain Grantor's sole responsibility.

  Insurance Reports. Grantor, upon request of Lender, shall furnish to Lender
  reports on each existing policy of insurance showing such information as
  Lender may reasonably request including the following: (a) the name of the
  insurer; (b) the risks insured; (c) the amount of the policy; (d) the property
  insured; (e) the then current value on the basis of which insurance has been
  obtained and the manner of determining that value; and (f) the expiration date
  of the policy. In addition, Grantor shall upon request by Lender (however not
  more often than annually) have an independent appraiser satisfactory to Lender
  determine, as applicable, the cash value or replacement cost of the
  Collateral.

GRANTOR'S RIGHT TO POSSESSION. Until default, Grantor may have possession of the
tangible personal property and beneficial use of all the Collateral and may use
it in any lawful manner not inconsistent with this Agreement or the Related
Documents, provided that Grantor's right to possession and beneficial use shall
not apply to any Collateral where possession of the Collateral by Lender is
required by law to perfect Lender's security interest in such Collateral. If
Lender at any time has possession of any Collateral, whether before or after an
Event of Default, Lender shall be deemed to have exercised reasonable care in
the custody and preservation of the Collateral if Lender takes such action for
that purpose as Grantor shall request or as Lender, in Lender's sole discretion,
shall deem appropriate under the circumstances, but failure to honor any request
by Grantor shall not of itself be deemed to be a failure to exercise reasonable
care. Lender shall not be required to take any steps necessary to preserve any
rights in the Collateral against prior parties, nor to protect, preserve or
maintain any security interest given to secure the Indebtedness.

EXPENDITURES BY LENDER. If not discharged or paid when due, Lender may (but
shall not be obligated to) discharge or pay any amounts required to be
discharged or paid by Grantor under this Agreement, including without limitation
all taxes, liens, security interests, encumbrances, and other claims, at any
time levied or placed on the Collateral. Lender also may (but shall not be
obligated to) pay all costs for insuring, maintaining and preserving the
Collateral. All such expenditures incurred or paid by Lender for such purposes
will then bear interest at the rate charged under the Note from the date
incurred or paid by Lender to the date of repayment by Grantor. All such
expenses shall become a part of the Indebtedness and, at Lender's option, will
(a) be payable on demand, (b) be added to the balance of the Note and be
apportioned among and be payable with any installment payments to become due
during either (i) the term of any applicable insurance policy or (ii) the
remaining term of the Note, or (c) be treated as a balloon payment which will be
due and payable at the Note's maturity. This Agreement also will secure payment
of these amounts. Such right shall be in addition to all other rights and
remedies to which Lender may be entitled upon the occurrence of an Event of
Default.

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

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

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

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

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

  Events Affecting Guarantor. Any of the preceding events occurs with respect to
  any Guarantor of any of the Indebtedness or such Guarantor dies or becomes
  incompetent.

RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this
Agreement, at any time thereafter, Lender shall have all the rights of a secured
party under the California Uniform Commercial Code. In addition and without
limitation, Lender may exercise any one or more of the following rights and
remedies:

  Accelerate Indebtedness. Lender may declare the entire Indebtedness, including
  any prepayment penalty which Grantor would be required to pay, immediately due
  and payable, without notice.

  Assemble Collateral. Lender may require Grantor to deliver to Lender all or
  any portion of the Collateral and any and all certificates of title and other
  documents relating to the Collateral. Lender may require Grantor to assemble
  the Collateral and make it available to Lender at a place to be designated by
  Lender. Lender also shall have full power to enter upon the property of
  Grantor to take possession of and remove the Collateral. If the Collateral
  contains other goods not covered by this Agreement at the time of
  repossession, Grantor agrees Lender may take such other goods, provided that
  Lender makes reasonable efforts to return them to Grantor after repossession.

  Sell the Collateral. Lender shall have full power to sell, lease, transfer, or
  otherwise deal with the Collateral or proceeds thereof in its own name or that
  of Grantor. Lender may sell the Collateral at public auction or private sale.
  Unless the Collateral threatens to decline speedily in value or is of a type
  customarily sold on a recognized market, Lender will give Grantor reasonable
  notice of the time after which any private sale or any other intended
  disposition of the Collateral is to be made. The requirements of reasonable
  notice shall be met if such notice is given at least ten (10) days, or such
  lesser time as required by state law, before the time of the sale or
  disposition. All expenses relating to the disposition of the Collateral,
  including without limitation the expenses of retaking, holding, insuring,
  preparing for sale and selling the Collateral, shall become a part of the
  Indebtedness secured by this Agreement and shall be payable on demand, with
  interest at the Note rate from date of expenditure until repaid.

  Appoint Receiver. To the extent permitted by applicable law, Lender shall have
  the following rights and remedies regarding the appointment of a receiver: (a)
  Lender may have a receiver appointed as a matter of right, (b) the receiver
  may be an employee of Lender and may serve without bond, and (c) all fees of
  the receiver and his or her attorney shall become part of the Indebtedness
  secured by this Agreement and shall be payable on demand, with interest at the
  Note rate from date of expenditure until repaid.

  Collect Revenues, Apply Accounts. Lender, either itself or through a receiver,
  may collect the payments, rents, income, and revenues from the Collateral.
  Lender may at any time in its discretion transfer any Collateral into its own
  name or that of its nominee and receive the payments, rents, income, and
  revenues therefrom and hold the same as security for the Indebtedness or apply
  it to payment of the Indebtedness in such order of preference as Lender may
  determine. Insofar as the Collateral consists of accounts, general
  intangibles, insurance policies, instruments, chattel paper, choses in action,
  or similar property, Lender may demand, collect, receipt for, settle,
  compromise, adjust, sue for, foreclose, or realize on the Collateral as Lender
  may determine, whether or not Indebtedness or Collateral is then due. For
  these purposes, Lender may, on behalf of and in the name of Grantor, receive,
  open and dispose of mail addressed to Grantor; change any address to which
  mail and payments
<PAGE>

================================================================================

                         COMMERCIAL SECURITY AGREEMENT
                                  (Continued)

================================================================================

  are to be sent; and endorse notes, checks, drafts, money orders, documents of
  title, instruments and items pertaining to payment, shipment, or storage of
  any Collateral. To facilitate collection, Lender may notify account debtors
  and obligors on any Collateral to make payments directly to Lender.

  Obtain Deficiency. If Lender chooses to sell any or all of the Collateral,
  Lender may obtain a judgment against Grantor for any deficiency remaining on
  the Indebtedness due to Lender after application of all amounts received from
  the exercise of the rights provided in this Agreement. Grantor shall be liable
  for a deficiency even if the transaction described in this subsection is a
  sale of accounts or chattel paper.

  Other Rights and Remedies. Lender shall have all the rights and remedies of a
  secured creditor under the provisions of the Uniform Commercial Code, as may
  be amended from time to time. In addition, Lender shall have and may exercise
  any or all other rights and remedies it may have available at law, in equity,
  or otherwise.

  Cumulative Remedies. All of Lender's rights and remedies, whether evidenced by
  this Agreement or the Related Documents or by any other writing, shall be
  cumulative and may be exercised singularly or concurrently. Election by Lender
  to pursue any remedy shall not exclude pursuit of any other remedy, and an
  election to make expenditures or to take action to perform an obligation of
  Grantor under this Agreement, after Grantor's failure to perform, shall not
  affect Lender's right to declare a default and to exercise its remedies.

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

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

  Applicable Law. This Agreement has been delivered to Lender and accepted by
  Lender in the State of California. If there is a lawsuit, Grantor agrees upon
  Lender's request to submit to the jurisdiction of the courts of Santa Clara
  County, State of California. (Initial Here  /s/   )  Lender and Grantor hereby
                                             --------
  waive the right to any jury trial in any action, proceeding, or counterclaim
  brought by either Lender or Grantor against the other. This Agreement shall be
  governed by and construed in accordance with the laws of the State of
  California.

  Attorneys' Fees; Expenses. Grantor agrees to pay upon demand all of Lender's
  costs and expenses, including attorneys' fees and Lender's legal expenses,
  incurred in connection with the enforcement of this Agreement. Lender may pay
  someone else to help enforce this Agreement, and Grantor shall pay the costs
  and expenses of such enforcement. Costs and expenses include Lender's
  attorneys' fees and legal expenses whether or not there is a lawsuit,
  including attorneys' fees and legal expenses for bankruptcy proceedings (and
  including efforts to modify or vacate any automatic stay or injunction),
  appeals, and any anticipated post-judgment collection services. Grantor also
  shall pay all court costs and such additional fees as may be directed by the
  court.

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

  Multiple Parties; Corporate Authority. All obligations of Grantor under this
  Agreement shall be joint and several, and all references to Grantor shall mean
  each and every Grantor. This means that each of the persons signing below is
  responsible for all obligations in this Agreement.

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

  Power of Attorney. Grantor hereby appoints Lender as its true and lawful
  attorney-in-fact, irrevocably, with full power of substitution to do the
  following: (a) to demand, collect, receive, receipt for, sue and recover all
  sums of money or other property which may now or hereafter become due, owing
  or payable from the Collateral; (b) to execute, sign and endorse any and all
  claims, instruments, receipts, checks, drafts or warrants issued in payment
  for the Collateral; (c) to settle or compromise any and all claims arising
  under the Collateral, and, in the place and stead of Grantor, to execute and
  deliver its release and settlement for the claim; and (d) to file any claim or
  claims or to take any action or institute or take part in any proceedings,
  either in its own name or in the name of Grantor, or otherwise, which in the
  discretion of Lender may seem to be necessary or advisable. This power is
  given as security for the Indebtedness, and the authority hereby conferred is
  and shall be irrevocable and shall remain in full force and effect until
  renounced by Lender.

  Preference Payments. Any monies Lender pays because of an asserted preference
  claim in Borrower's bankruptcy will become a part of the Indebtedness and, at
  Lender's option, shall be payable by Borrower as provided above in the
  "EXPENDITURES BY LENDER" paragraph.

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

  Successor Interests. Subject to the limitations set forth above on transfer of
  the Collateral, this Agreement shall be binding upon and inure to the benefit
  of the parties, their successors and assigns.

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

  Waiver of Co-obligor's Rights. If more than one person is obligated for the
  Indebtedness, Borrower irrevocably waives, disclaims and relinquishes all
  claims against such other person which Borrower has or would otherwise have by
  virtue of payment of the Indebtedness or any part thereof, specifically
  including but not limited to all rights of indemnity, contribution or
  exoneration.

ADDITIONAL PROVISION. If any law is passed that requires additional action on
the part of Lender, Grantor shall fully cooperate with Lender in complying with
the law and accordingly, shall reimburse Lender for all costs and expenses which
Lender incurs to comply with the law.
<PAGE>

                          LOAN MODIFICATION AGREEMENT

    This Loan Modification Agreement is entered into as of March 3, 1999, by
and between Inventa Corporation ("Borrower") and Silicon Valley Bank ("Bank").

1.  DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may be
    ------------------------------------
owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among other
documents, an Amended and Restated Loan and Security Agreement, dated August 19,
1998, as may be amended from time to time, (the "Loan Agreement"). The Loan
Agreement provided for, among other things, a Committed Revolving Line in the
original principal amount of One Million Two Hundred Thousand Dollars
($1,200,000) and a Committed Equipment Line in the original principal amount of
Three Hundred Thousand Dollars ($300,000). Defined terms used but not otherwise
defined herein shall have the same meanings as in the Loan Agreement.

Hereinafter, all indebtedness owing by Borrower to Bank shall be referred to as
the "Indebtedness."

2.  DESCRIPTION OF COLLATERAL AND GUARANTIES. Repayment of the Indebtedness is
    ----------------------------------------
secured by the Collateral as described in the Loan Agreement.

Hereinafter, the above-described security documents and guaranties, together
with all other documents securing repayment of the Indebtedness shall be
referred to as the "Security Documents". Hereinafter, the Security Documents,
together with all other documents evidencing or securing the Indebtedness shall
be referred to as the "Existing Loan Documents".

3.  DESCRIPTION OF CHANGE IN TERMS.
    ------------------------------

    A.  Waiver of Covenant Default.
        --------------------------

        1.   Bank hereby waives Borrower's existing default under the Loan
             Agreement by virtue of Borrower's failure to comply with the
             Profitability covenant as of the quarter ended December 31, 1998.
             Bank's waiver of Borrower's compliance of this covenant shall apply
             only to the foregoing period. Accordingly, for the quarter ending
             March 31, 1999, Borrower shall be in compliance with this covenant.

             Bank's agreement to waive the above-described default (1) in no way
             shall be deemed an agreement by Bank to waive Borrower's compliance
             with the above-described covenant as of all other dates and (2)
             shall not limit or impair the Bank's right to demand strict
             performance of this covenant as of all other dates and (3) shall
             not limit or impair the Bank's right to demand strict performance
             of all other covenants as of any date.

4.  CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever
    ------------------
necessary to reflect the changes described above.

5.  NO DEFENSES OF BORROWER. Borrower (and each guarantor and pledgor signing
    -----------------------
below) agrees that, as of the date hereof, it has no defenses against the
obligations to pay any amounts under the Indebtedness.

6.  CONTINUING VALIDITY. Borrower (and each guarantor and pledgor signing below)
    -------------------
understands and agrees that in modifying the existing Indebtedness, Bank is
relying upon Borrower's representations, warranties, and agreements, as set
forth in the Existing Loan Documents. Except as expressly modified pursuant to
this Loan Modification Agreement, the terms of the Existing Loan Documents
remain unchanged and in full force and effect. Bank's agreement to modifications
to the existing Indebtedness pursuant to this Loan Modification Agreement in no
way shall obligate Bank to make any future modifications to the Indebtedness.
Nothing in this Loan Modification Agreement shall constitute a satisfaction of
the Indebtedness. It is the intention of Bank and Borrower to retain as liable
parties all makers and endorsers of Existing Loan Documents, unless the party is
expressly released by Bank in writing. No maker, endorser, or

<PAGE>

guarantor will be released by virtue of this Loan Modification Agreement. The
terms of this paragraph apply not only to this Loan Modification Agreement, but
also to all subsequent loan modification agreements.

     This Loan Modification Agreement is executed as of the date first written
above.

BORROWER:                               BANK:

INVENTA CORPORATION                     SILICON VALLEY BANK

By:  /s/ [ILLEGIBLE]^^                  By: /s/ Timothy M. Walsh
     -------------------                    ------------------------
Name: [ILLEGIBLE]^^                     Name:   Tim Walsh
     -------------------                     ------------------------
Title:  Controller                      Title:  Vice President
      ------------------                      -----------------------

                                       2
<PAGE>

                          LOAN MODIFICATION AGREEMENT

     This Loan Modification Agreement is entered into as of June 22, 1999, by
and between Inventa Corporation ("Borrower") and Silicon Valley Bank a
California-chartered bank ("Bank").

1.  DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may be
    ------------------------------------
owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among other
documents, an Amended and Restated Loan and Security Agreement, dated August 19,
1998, as may be amended from time to time, (the "Loan Agreement"). The Loan
Agreement provided for, among other things, a Committed Revolving Line in the
original principal amount of One Million Two Hundred Thousand Dollars
($1,200,000), a Committed Equipment Line in the original principal amount of
Three Hundred Thousand Dollars ($300,000) Defined terms used but not otherwise
defined herein shall have the same meanings as in the Loan Agreement.

Hereinafter, all indebtedness owing by Borrower to Bank shall be referred to as
the "Indebtedness."

2.  DESCRIPTION OF COLLATERAL AND GUARANTIES. Repayment of the Indebtedness is
    ----------------------------------------
secured by the Collateral as described in the Loan Agreement and a Commercial
Security Agreement dated May 30, 1995.

Hereinafter, the above-described security documents and guaranties, together
with all other documents securing repayment of the Indebtedness shall be
referred to as the "Security Documents". Hereinafter, the Security Documents,
together with all other documents evidencing or securing the Indebtedness shall
be referred to as the "Existing Loan Documents".

3.  DESCRIPTION OF CHANGE IN TERMS.
    ------------------------------

     A.  Modification(s) to Loan Agreement
         ---------------------------------

          1.   Section 2.1.4 entitled "Equipment Advances II" is hereby
               incorporated into the Loan Agreement to read as follows:

                    (a) Through June 22, 2000 (the "Equipment Availability End
               Date II"), Bank will make advances ("Equipment Advance II" and,
               collectively, "Equipment Advances II") not exceeding the
               Committed Equipment Line II, The Equipment Advances II may only
               be used to purchase Equipment and may not exceed 100% of the
               equipment invoice excluding taxes, shipping, warranty charges,
               freight discounts and installation expense. Software may
               constitute up to 25% of the aggregate Equipment Advances II. Each
               Equipment Advance II must be for minimum of $10,000.00.

                    (b) Interest accrues from the date of each Equipment Advance
               II at a rate in Section 2.3(a) and is payable monthly until the
               Equipment Availability End Date II occurs. Equipment Advances II
               outstanding on the Equipment Availability End Date II are payable
               in 36 equal monthly installments of principal, plus accrued
               interest, beginning on the 22nd day of each month following the
               Equipment Availability End Date II and ending on June 22, 2003
               (the "Equipment Maturity Date II"). Equipment Advances II when
               repaid may not be reborrowed.

                    (c) To obtain an Equipment Advance II, Borrower must notify
               Bank (the notice is irrevocable) by facsimile no later than 3:00
               p.m. Pacific time 1 Business day before the day on which the
               Equipment Advance is to be made. The notice must be signed by a
               Responsible Officer or designee and include a copy of the invoice
               for the Equipment being financed.

                                       1
<PAGE>

          2.   Section 2.3 (a) entitled "Interest Rate, Payments" is hereby
               amended in part to provide that Equipment Advances II shall
               accrue interest on the outstanding principal balance at a per
               annum rate of 1.50 percentage point above the Prime Rate.

          3.   Section 6.7 entitled "Financial Covenants" is hereby amended in
               part as follows:

               (v)  Profitability. Borrower will be profitable on a quarterly
               basis, except that Borrower may have a maximum loss of $2,300,000
               for the quarter ending June 30, 1999; $2,325,000 for the quarter
               ending September 30, 1999; $300,000 for the quarter ending
               December 31, 1999 and profitable for the quarter ending March
               31, 2000 and thereafter.

               (vi) Remaining Months Liquidity. Borrower will maintain, as of
               the last day of each month, at least four months Remaining Months
               Liquidity. "Remaining Months Liquidity" is cash on hand (and cash
               equivalents) plus availability under the Committed Revolving
               Line, divided by Cash Burn. If cash (and cash equivalents)
               increases from the prior period, "Cash Burn" is cash (prior
               period) minus cash (current period) plus increases/less decreases
               in short and long term borrowings plus increases/less decreases
               in stock, paid-in capital and Subordinated Debt, If cash (and
               cash equivalents) decreases from prior period. "Cash Burn" is
               cash (prior period) less (current period) minus increases/plus
               decreases in short and long term borrowings minus increases/plus
               decreases in stock, paid-in capital and subordinated debt. Upon
               Borrower achieving 6 consecutive months of Debt Service Coverage
               of at least 2.00 to 1.00, the Remaining Months Liquidity and
               Minimum Liquidity covenant shall be replaced with a Debt Service
               Coverage of at least 2.00 to 1.00.

          4.   The following defined terms as set forth in Section 13.1 entitled
               "Definitions" is hereby amended and/or incorporated to read as
               follows:

               "Committed Revolving Line" is $1,000,000.

               "Committed Equipment Line II" is a Credit Extension of up to
               $300,000.

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

               "Equipment Advances II" is defined in Section 2.1.4

               "Equipment Availability End Date II" is defined in Section 2.1.4

               "Equipment Maturity Date II" is defined in Section 2.1.4

               Subletter (b) under the term defined as "Eligible Accounts" is
               hereby amended as follows:

                    Account for an account debtor, including Affiliates, whose
               total obligation to Borrower exceed 35% of all Accounts, for the
               amounts that exceed that percentage, unless the Bank approves in
               writing.

     B.   Waiver of Financial Covenant Defaults.
          -------------------------------------

          1.   Bank hereby waives Borrower's existing defaults under the Loan
               Agreement by virtue of Borrower's failure to comply with the
               Quick Ratio covenant for the months ended March 31, 1999 and
               April 30, 1999, the Debt/Tangible Net Worth Ratio for

                                       2
<PAGE>

               the month ended April 30, 1999 and the Profitability covenant as
               of fiscal quarter ended March 31, 1999. Bank's waiver of
               Borrower's compliance of these covenants shall apply only to the
               foregoing periods. Accordingly, for the month ended May 30, 1999,
               Borrower shall be in compliance with the Quick Ratio and
               Debt/Tangible Net Worth Ratio covenants and for the fiscal
               quarter ending June 30, 1999, Borrower shall be in compliance
               with the Profitability covenant, as amended herein.

               Bank's agreement to waive the above-described defaults (1) in no
               way shall be deemed an agreement by the Bank to waive Borrower's
               compliance with the above-described covenants as of all other
               dates and (2) shall not limit or impair the Bank's right to
               demand strict performance of these covenants as of all other
               dates and (3) shall not limit or impair the Bank's right to
               demand strict performance of all other covenants as of any date.

4.  CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever
    ------------------
necessary to reflect the changes described above.

5.  PAYMENT OF LOAN FEE. Borrower shall pay to Bank a fee in the amount of Two
    -------------------
Thousand Five Hundred and 00/100 Dollars ($2,500.00) (the "Loan Fee") plus all
out-of-pocket expenses.

6.  NO DEFENSES OF BORROWER. Borrower (and each guarantor and pledgor signing
    -----------------------
below) agrees that, as of the date hereof, it has no defenses against the
obligations to pay any amounts under the Indebtedness.

7.  CONTINUING VALIDITY. Borrower (and each guarantor and pledgor signing below)
    -------------------
understands and agrees that in modifying the existing Indebtedness, Bank is
relying upon Borrower's representations, warranties, and agreements, as set
forth in the Existing Loan Documents. Except as expressly modified pursuant to
this Loan Modification Agreement, the terms of the Existing Loan Documents
remain unchanged and in full force and effect. Bank's agreement to modifications
to the existing Indebtedness pursuant to this Loan Modification Agreement in no
way shall obligate Bank to make any future modifications to the Indebtedness.
Nothing in this Loan Modification Agreement shall constitute a satisfaction of
the Indebtedness. It is the intention of Bank and Borrower to retain as liable
parties all makers and endorsers of Existing Loan Documents, unless the party is
expressly released by Bank in writing. No maker, endorser, or guarantor will be
released by virtue of this Loan Modification Agreement. The terms of this
paragraph apply not only to this Loan Modification Agreement, but also to all
subsequent loan modification agreements.

8.  CONDITIONS. The effectiveness of this Loan Modification Agreement is
    ----------
conditioned upon Borrower's payment of the Loan Fee.

    This Loan Modification Agreement is executed as of the date first written
above.

BORROWER:                                 BANK:

INVENTA CORPORATION                       SILICON VALLEY BANK

By:  /s/ Ashok Santhanam                  By: /s/ Timothy M. Walsh
   ----------------------------              -----------------------------

Name: Ashok Santhanam                     Name:  Timothy M. Walsh
     ---------------------------                --------------------------
Title: Chairman                           Title:  V P
      --------------------------                --------------------------

                                       3
<PAGE>

[LOGO]

                              SILICON VALLEY BANK

                      PRO FORMA INVOICE FOR LOAN CHARGES

BORROWER:          Inventa Corporation

LOAN OFFICER:      Tim Walsh

DATE:              June 22, 1999

                   Loan Fee                        $2,500.00
                   Documentation Fee                  500.00

                   TOTAL FEE DUE                   $3,000.00
                   -------------                   =========

Please indicate the method of payment:

   [ ]   A check for the total amount is attached.

   [X]   Debit DDA #__________ for the total amount.

   [ ]   Loan proceeds

Inventa Corporation

/s/ [ILLEGIBLE]^^         7/1/99
----------------------------------
                          (Date)

/s/ Timothy M. Walsh      7/6/99
----------------------------------
Silicon Valley Bank       (Date)
Account Officer's Signature

                                       1
<PAGE>

                            COMPLIANCE CERTIFICATE

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

FROM:  INVENTA CORPORATION

     The undersigned authorized officer of INVENTA CORPORATION ("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.

Reporting Covenant                    Required                       Complies
------------------                    --------                       --------
Monthly financial statements + CC     Monthly within 30 days         Yes   No
Annual (Audited)                      FYE within 90 days             Yes   No
A/R & A/P Agings                      Monthly within 20 days         Yes   No
Borrowing Base Certificate            Monthly within 20 days         Yes   No

Financial Covenant                    Required             Actual    Complies
------------------                    --------             ------    --------
Maintain on a Monthly Basis:
  Minimum Quick Ratio                 1.75:1.00            ____:1,00 Yes   No
  Maximum Debt/Tangible Net Worth     1.25:1.00            ____:1.00 Yes   No
  Minimum Liquidity                   2X outstandings      _____X    Yes   No
                                      Under Equipment Notes

Profitability: Quarterly
               Losses not to exceed:  $2,300,000 for the quarter
                                      ended 6/30/99                  Yes   No
                                      $2,325,000 for the quarter
                                      ending 9/30/99
                                      $300,000 for the quarter ending
                                      12/31/99
                                      Profitable beginning quarter
                                      ending 3/31/00
Remaining Months Liquidity:           4 months                       Yes   No

Upon Borrower's achievement of a Debt Service Coverage ratio of at least 2.00 to
1.00 for six consecutive months, the Minimum Liquidity and the Remaining Months
Liquidity covenants shall be replaced with a Minimum Debt Service Ratio of 2.00
to 1.00.
<PAGE>

                          BORROWING BASE CERTIFICATE

--------------------------------------------------------------------------------

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

Commitment Amount:  $300,000
--------------------------------------------------------------------------------
<TABLE>
<S>                                                         <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)
1.  Amounts over 90 days due                                $_____________
5.  Balance of 50% over 90 day accounts                     $_____________
6.  Credit balances                                         $_____________
7.  Concentration Limits 35%                                $_____________
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 #15, subject to satisfactory Accounts audit)        $_____________

BALANCES
17.  Maximum Loan Amount                                   $_____________
18.  Total Funds Available [Lesser 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)                                          $_____________
</TABLE>

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:                                        ------------------------------

INVENTA CORPORATION                                    BANK USE ONLY

By:______________________________                Rec'd By: __________________
     Authorized Signer                                        Auth. Signer
                                                 Date:_______________________

                                                 Verified: __________________
                                                              Auth. Signer

                                                 Date:_______________________
                                                 _______________________

                                                 ------------------------------

                                       1
<PAGE>

Comments Regarding Exceptions: See Attached.   --------------------------------

                                                     BANK USE ONLY

Sincerely,                                     Received by: ___________________
                                                             AUTHORIZED SIGNER

INVENTA CORPORATION                            Date:___________________________

__________________________________             Verified: ______________________
SIGNATURE                                                   AUTHORIZED SIGNER

__________________________________             Date:___________________________
TITLE

                                               Compliance Status:     Yes  No
__________________________________             --------------------------------
DATE

By:_______________________________
Name:_____________________________
Title:____________________________

                                       2<PAGE>

                                                                   EXHIBIT 10.12

greyrock
   capital
  A Bank of America Company

                          Loan and Security Agreement

Borrower:  Inventa Corporation
Address:   255 Shoreline Drive, 2nd Floor
           Redwood Shores, California 94065

Date:      November 17, 1999

This Loan and Security Agreement is entered into on the above date between
GREYROCK CAPITAL, a Division of Banc of America Commercial Finance Corporation
(Greyrock), whose address is 10880 Wilshire Blvd. Suite 1850, Los Angeles, CA
90024 and the borrower named above (Borrower), whose chief executive office is
located at the above address (Borrower's Address).  The Schedule to this
Agreement (the Schedule) being signed concurrently is an integral part of this
Agreement.  (Definitions of certain terms used in this Agreement are set forth
in Section 8 below.)

1.  LOANS.

  1.1  Loans.  Greyrock will make loans to Borrower (the Loans), in amounts
determined by Greyrock in its *  , up to the amounts (the Credit Limit) shown on
the Schedule, provided no Default or Event of Default has occurred and is
continuing.  If at any time or for any reason the total of all outstanding Loans
and all other Obligations exceeds the Credit Limit, Borrower shall immediately
pay the amount of the excess to Greyrock, without notice or demand.

  *good faith business judgment

  1.2  Interest.  All Loans and all other monetary Obligations shall bear
interest at the rate shown on the Schedule, except where expressly set forth to
the contrary in this Agreement or in another written agreement signed by
Greyrock and Borrower.  Interest shall be payable monthly, on the last day of
the month.  Interest may, in Greyrock's discretion, be charged to Borrower's
loan account, and the same shall thereafter bear interest at the same rate as
the other Loans.

  1.3  Fees.  Borrower shall pay Greyrock the fee(s) shown on the Schedule,
which are in addition to all interest and other sums payable to Greyrock and are
not refundable.

2.  SECURITY INTEREST.

  2.1  Security Interest.  To secure the payment and performance of all of the
Obligations when due, Borrower hereby grants to Greyrock a security interest in
all of Borrower's interest in the following, whether now owned or hereafter
acquired, and wherever located (collectively, the Collateral):  All Receivables,
Inventory, Equipment, Investment Property and General Intangibles, including,
without limitation, all of Borrower's Deposit Accounts, all money, all
collateral in which Greyrock is granted a security interest pursuant to any
other present or future agreement, all property now or at any time in the future
in Greyrock's possession, and all proceeds (including proceeds of any insurance
policies, proceeds of proceeds and claims against third parties), all products
of the foregoing, and all books and records related to any of the foregoing.

3.  REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWER.

  In order to induce Greyrock to enter into this Agreement and to make Loans,
Borrower represents and warrants to Greyrock as follows, and Borrower covenants
that the following representations will continue to be true, and that Borrower
will at all times comply with all of the following covenants:

  3.1  Corporate Existence and Authority.  Borrower, if a corporation, is and
will continue to be, duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation.  Borrower is and will
continue to be qualified and licensed to do business in all jurisdictions in
which any failure to do so would have a material adverse effect on Borrower.
The execution, delivery and performance by Borrower of this Agreement, and all
other documents contemplated hereby (i) have been duly and validly authorized,
(ii) are enforceable against Borrower in accordance with their terms (except as
enforcement may be limited by equitable principles and by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to creditors'
rights generally), (iii) do not violate Borrower's articles or certificate of
incorporation, or Borrower's by-laws, or any law or any material agreement or
instrument which is binding upon Borrower or its property, and (iv) do not
constitute grounds for acceleration of any material

                                      -1-
<PAGE>

     Greyrock Capital                            Loan and Security Agreement
--------------------------------------------------------------------------------

indebtedness or obligation under any material agreement or instrument which is
binding upon Borrower or its property.

  3.2  Name; Trade Names and Styles.  The name of Borrower set forth in the
heading to this Agreement is its correct name.  Listed on the Schedule are all
prior names of Borrower and all of Borrower's present and prior trade names.
Borrower shall give Greyrock 30 days' prior written notice before changing its
name or doing business under any other name.  Borrower has complied, and will in
the future comply, with all laws relating to the conduct of business under a
fictitious business name.

  3.3  Place of Business; Location of Collateral.  The address set forth in the
heading to this Agreement is Borrower's chief executive office.  In addition,
Borrower has places of business and Collateral is located only at the locations
set forth on the Schedule.  Borrower will give Greyrock at least 30 days prior
written notice before opening any additional place of business, changing its
chief executive office, or moving any of the Collateral to a location other than
Borrower's Address or one of the locations set forth on the Schedule.

  3.4  Title to Collateral; Permitted Liens.  Borrower is now, and will at all
times in the future be, the sole owner of all the Collateral, except for items
of Equipment which are leased by Borrower.  The Collateral now is and will
remain free and clear of any and all liens, charges, security interests,
encumbrances and adverse claims, except for Permitted Liens.  Greyrock now has,
and will continue to have, a first-priority perfected and enforceable security
interest in all of the Collateral, subject only to the Permitted Liens, and
Borrower will at all times defend Greyrock and the Collateral against all claims
of others.  Borrower is not and will not become a lessee under any real
property lease pursuant to which the lessor may obtain any rights in any of the
Collateral and no such lease now prohibits, restrains, impairs or will prohibit,
restrain or impair Borrower's right to remove any Collateral from the leased
premises.  Whenever any Collateral is located upon premises in which any third
party has an interest (whether as owner, mortgagee, beneficiary under a deed of
trust, lien or otherwise), Borrower shall, whenever requested by Greyrock, use
its best efforts to cause such third party to execute and deliver to Greyrock,
in form acceptable to Greyrock, such waivers and subordinations as Greyrock
shall specify, so as to ensure that Greyrock's rights in the Collateral are, and
will continue to be, superior to the rights of any such third party.  Borrower
will keep in full force and effect, and will comply with all the terms of, any
lease of real property where any of the Collateral now or in the future may be
located.

  3.5  Maintenance of Collateral.  Borrower will maintain the Collateral in good
working condition, ordinary wear and tear excepted, and Borrower will not use
the Collateral for any unlawful purpose.  Borrower will immediately advise
Greyrock in writing of any material loss or damage to the Collateral.

  3.6  Books and Records.  Borrower has maintained and will maintain at
Borrower's Address complete and accurate books and records, comprising an
accounting system in accordance with generally accepted accounting principles.

  3.7  Financial Condition, Statements and Reports.  All financial statements
now or in the future delivered to Greyrock have been, and will be, prepared in
conformity with generally accepted accounting principles * and now and in the
future will  fairly reflect the financial condition of Borrower, at the times
and for the periods therein stated.  Between the last date covered by any such
statement provided to Greyrock and the date hereof, there has been no material
adverse change in the financial condition or business of Borrower.  Borrower is
now and will continue to be solvent.

  *(except for the absence of footnotes and subject to normal year-end
adjustments with respect to unaudited financial statements)

  3.8  Tax Returns and Payments; Pension Contributions.  Borrower has timely
filed, and will timely file, all tax returns and reports required by applicable
law, and Borrower has timely paid, and will timely pay, all applicable taxes,
assessments, deposits and contributions now or in the future owed by Borrower.
Borrower may, however, defer payment of any contested taxes, provided that
Borrower (i) in good faith contests Borrower's obligation to pay the taxes by
appropriate proceedings promptly and diligently instituted and conducted, (ii)
notifies Greyrock in writing of the commencement of, and any material
development in, the proceedings, and (iii) posts bonds or takes any other steps
required to keep the contested taxes from becoming a lien upon any of the
Collateral.  Borrower is unaware of any claims or adjustments proposed for any
of Borrower's prior tax years which could result in additional taxes becoming
due and payable by Borrower.  Borrower has paid, and shall continue to pay all
amounts necessary to fund all present and future pension, profit sharing and
deferred compensation plans in accordance with their terms, and Borrower has not
and will not withdraw from participation in, permit partial or complete
termination of, or permit the occurrence of any other event with respect to, any
such plan which could result in any liability of Borrower, including any
liability to the Pension Benefit Guarantee Corporation or any other governmental
agency.  Borrower shall, at all times, maintain a separate payroll account which
shall be used exclusively for payment of payroll and payroll taxes and other
items related directly to payroll.

  3.9  Compliance with Law.  * Borrower has complied, and will comply, in all
material respects, with all provisions of all applicable laws and regulations,
including, but not limited to, those relating to Borrower's ownership of real or
personal property, the conduct and licensing of Borrower's business, and all
environmental matters.

  *Unless noncompliance would not materially adversely affect (i) Borrower's
financial condition as reflected in its financial

                                      -2-
<PAGE>

     Greyrock Capital                            Loan and Security Agreement
--------------------------------------------------------------------------------

statements previously delivered to Greyrock, (ii) Borrower's operations, or
(iii) Borrower's business,

  3.10  Litigation.  Except as disclosed in the Schedule, there is no claim,
suit, litigation, proceeding or investigation pending or (to best of Borrower's
knowledge) threatened by or against Borrower in any court or before any
governmental agency (or any basis therefor known to Borrower) which may result,
either separately or in the aggregate, in any material adverse change in the
financial condition or business of Borrower, or in any material impairment in
the ability of Borrower to carry on its business in substantially the same
manner as it is now being conducted.  Borrower will promptly inform Greyrock in
writing of any claim, proceeding, litigation or investigation in the future
threatened or instituted by or against Borrower *   any single claim of $50,000
or more, or involving $100,000 or more in the aggregate.

  * which can reasonably be expected to result in liability with respect to

  3.11  Use of Proceeds.  All proceeds of all Loans shall be used solely for
lawful business purposes.

  3.12  Year 2000 Compliance.  The Borrower has (i) initiated a review and
assessment of all areas within its and each of its subsidiaries' business and
operations (including those affected by suppliers and vendors) that could be
adversely affected by the "Year 2000 Problem" (that is, the risk that computer
applications used by the Borrower or any of its subsidiaries (or its suppliers
and vendors) may be unable to recognize and perform properly date-sensitive
functions involving certain dates prior to and any date after December 31,
1999), (ii) developed a plan and timeline for addressing the Year 2000 Problem
on a timely basis, and (iii) to date, implemented that plan in accordance with
that timetable.  The Borrower reasonably believes that all computer applications
(including those of its suppliers and vendors) that are material to its or any
of its subsidiaries' business and operations will on a timely basis be able to
perform properly date-sensitive functions for all dates before and after January
1, 2000 (that is, be "Year 2000 compliant"), except to the extent that a failure
to do so could not reasonably be expected to have material adverse effect. The
Borrower will promptly notify Greyrock in the event the Borrower discovers or
determines that any computer application (including those of its suppliers and
vendors) that is material to its or any of its subsidiaries' business and
operations will not be Year 2000 compliant on a timely basis, except to the
extent that such failure could not reasonably be expected to have a material
adverse effect.

4.  RECEIVABLES.

  4.1  Representations Relating to Receivables.  Borrower represents and
warrants to Greyrock as follows:  Each Receivable with respect to which Loans
are requested by Borrower shall, on the date each Loan is requested and made,
represent an undisputed, bona fide, existing, unconditional obligation of the
Account Debtor created by the sale, delivery, and acceptance of goods or the
rendition of services, in the ordinary course of Borrower's business.

  4.2  Representations Relating to Documents and Legal Compliance.  Borrower
represents and warrants to Greyrock as follows:  All statements made and all
unpaid balances appearing in all invoices, instruments and other documents
evidencing the Receivables are and shall be true and correct and all such
invoices, instruments and other documents and all of Borrower's books and
records are and shall be genuine and in all respects what they purport to be,
and all signatories and endorsers have the capacity to contract.  All sales and
other transactions underlying or giving rise to each Receivable shall comply
with all applicable laws and governmental rules and regulations.  All signatures
and endorsements on all documents, instruments, and agreements relating to all
Receivables are and shall be genuine, and all such documents, instruments and
agreements are and shall be legally enforceable in accordance with their terms.

  4.3  Schedules and Documents relating to Receivables.  Borrower shall deliver
to Greyrock transaction reports and loan requests, schedules and assignments of
all Receivables, and schedules of collections, all on Greyrock's standard forms;
provided, however, that Borrower's failure to execute and deliver the same shall
not affect or limit Greyrock's security interest and other rights in all of
Borrower's Receivables, nor shall Greyrock's failure to advance or lend against
a specific Receivable affect or limit Greyrock's security interest and other
rights therein.  Together with each such schedule and assignment, or later if
requested by Greyrock, Borrower shall furnish Greyrock with copies (or, at
Greyrock's request, originals) of all contracts, orders, invoices, and other
similar documents, and all original shipping instructions, delivery receipts,
bills of lading, and other evidence of delivery, for any goods the sale or
disposition of which gave rise to such Receivables, and Borrower warrants the
genuineness of all of the foregoing.  Borrower shall also furnish to Greyrock an
aged accounts receivable trial balance in such form and at such intervals as
Greyrock shall request.  In addition, Borrower shall deliver to Greyrock the
originals of all instruments, chattel paper, security agreements, guarantees and
other documents and property evidencing or securing any Receivables, immediately
upon receipt thereof and in the same form as received, with all necessary
endorsements.

  4.4  Collection of Receivables.  Borrower shall have the right to collect all
Receivables, unless and until a Default or an Event of Default has occurred.
Borrower shall hold all payments on, and proceeds of, Receivables in trust for
Greyrock, and Borrower shall deliver all such payments and proceeds to Greyrock,
within one business day after receipt of the same, in their original form, duly
endorsed, to be applied to the Obligations in such order as Greyrock shall
determine.

  4.5  Disputes.  Borrower shall notify Greyrock promptly of all disputes or
claims relating to Receivables on the regular reports to Greyrock.  Borrower
shall not forgive, or settle any Receivable for less than payment in

                                      -3-
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     Greyrock Capital                            Loan and Security Agreement
--------------------------------------------------------------------------------

full, or agree to do any of the foregoing, except that Borrower may do so,
provided that: (i) Borrower does so in good faith, in a commercially reasonable
manner, in the ordinary course of business, and in arm's length transactions,
which are reported to Greyrock on the regular reports provided to Greyrock; (ii)
no Default or Event of Default has occurred and is continuing; and (iii) taking
into account all such settlements and forgiveness, the total outstanding Loans
and other Obligations will not exceed the Credit Limit.

  4.6  Returns.  Provided no Event of Default has occurred and is continuing, if
any Account Debtor returns any Inventory to Borrower in the ordinary course of
its business, Borrower shall promptly determine the reason for such return and
promptly issue a credit memorandum to the Account Debtor in the appropriate
amount (sending a copy to Greyrock).  In the event any attempted return occurs
after the occurrence of any Event of Default, Borrower shall (i) not accept any
return without Greyrock's prior written consent, (ii) hold the returned
Inventory in trust for Greyrock, (iii) segregate all returned Inventory from all
of Borrower's other property, (iv) immediately notify Greyrock of the return
of any Inventory, specifying the reason for such return, the location and
condition of the returned Inventory, and on Greyrock's request deliver such
returned Inventory to Greyrock.

  4.7  Verification.  Greyrock may, from time to time, verify directly with the
respective Account Debtors the validity, amount and other matters relating to
the Receivables, by means of mail, telephone or otherwise, either in the name of
Borrower or Greyrock or such other name as Greyrock may choose, and Greyrock or
its designee may, at any time, notify Account Debtors that it has a security
interest in the Receivables.

  4.8  No Liability.  Greyrock shall not under any circumstances be responsible
or liable for any shortage or discrepancy in, damage to, or loss or destruction
of, any goods, the sale or other disposition of which gives rise to a
Receivable, or for any error, act, omission, or delay of any kind occurring in
the settlement, failure to settle, collection or failure to collect any
Receivable, or for settling any Receivable in good faith for less than the full
amount thereof, nor shall Greyrock be deemed to be responsible for any of
Borrower's obligations under any contract or agreement giving rise to a
Receivable.  Nothing herein shall, however, relieve Greyrock from liability for
its own gross negligence or willful misconduct.

5.  ADDITIONAL DUTIES OF THE BORROWER.

  5.1  Insurance.  Borrower shall, at all times, insure all of the tangible
personal property Collateral and carry such other business insurance, with
insurers reasonably acceptable to Greyrock, in such form and amounts as Greyrock
may reasonably require, and Borrower shall provide evidence of such insurance to
Greyrock, so that Greyrock is satisfied that such insurance is, at all times, in
full force and effect. * Upon receipt of the proceeds of any such insurance,
Greyrock shall apply such proceeds in reduction of the Obligations as Greyrock
shall determine in its sole discretion, except that, provided no Default or
Event of Default has occurred and is continuing, Greyrock shall release to
Borrower insurance proceeds with respect to Equipment totaling less than
$100,000, which shall be utilized by Borrower for the replacement of the
Equipment with respect to which the insurance proceeds were paid.  Greyrock may
require reasonable assurance that the insurance proceeds so released will be so
used.  If Borrower fails to provide or pay for any insurance, Greyrock may, but
is not obligated to, obtain the same at Borrower's expense.  Borrower shall
promptly deliver to Greyrock copies of all reports made to insurance companies.

  * All liability insurance policies of Borrower shall name Greyrock as an
additional insured, and all property casualty and related insurance policies of
Borrower shall name Greyrock as a loss payee thereon and Borrower shall cause a
lenders loss payee endorsement in form reasonably acceptable to Greyrock to be
delivered to Greyrock.

  5.2  Reports.  Borrower, at its expense, shall provide Greyrock with the
written reports set forth in the Schedule, and such other written reports with
respect to Borrower (including budgets, sales projections, operating plans and
other financial documentation), as Greyrock shall from time to time reasonably
specify.

  5.3  Access to Collateral, Books and Records.  At reasonable times, and on one
business day's notice, Greyrock, or its agents, shall have the right to inspect
the Collateral, and the right to audit and copy Borrower's books and records.
Greyrock shall take reasonable steps to keep confidential all information
obtained in any such inspection or audit, but Greyrock shall have the right to
disclose any such information to its auditors, regulatory agencies, and
attorneys, and pursuant to any subpoena or other legal process.  The foregoing
inspections and audits shall be at Borrower's expense and the charge therefor
shall be $600 per person per day (or such higher amount as shall represent
Greyrock's then current standard charge for the same), plus reasonable out-of-
pockets expenses.  Borrower shall not be charged more than $3,000 per audit
(plus reasonable out-of-pockets expenses), nor shall audits be done more
frequently than four times per calendar year, provided that the foregoing limits
shall not apply after the occurrence of a Default or Event of Default, nor shall
they restrict Greyrock's right to conduct audits at its own expense (whether or
not a Default or Event of Default has occurred).  * Borrower will not enter into
any agreement with any accounting firm, service bureau or third party to store
Borrower's books or records at any location other than Borrower's Address,
without first obtaining Greyrock's written consent, which may be conditioned
upon such accounting firm, service bureau or other third party

                                      -4-
<PAGE>

     Greyrock Capital                            Loan and Security Agreement
--------------------------------------------------------------------------------

agreeing to give Greyrock the same rights with respect to access to books and
records and related rights as Greyrock has under this Agreement.

  * With the exception of books and records more than three years old,

  5.4  Remittance of Proceeds.  All proceeds arising from the sale or other
disposition of any Collateral shall be delivered, in kind, by Borrower to
Greyrock in the original form in which received by Borrower not later than the
following business day after receipt by Borrower, to be applied to the
Obligations in such order as Greyrock shall determine; provided that, if no
Default or Event of Default has occurred and is continuing, and if no term loan
is outstanding hereunder, then Borrower shall not be obligated to remit to
Greyrock the proceeds of the sale of Equipment which is sold in the ordinary
course of business, in a good-faith arm's length transaction.  Except for the
proceeds of the sale of Equipment as set forth above, Borrower shall not
commingle proceeds of Collateral with any of Borrower's other funds or property,
and shall hold such proceeds separate and apart from such other funds and
property and in an express trust for Greyrock.  Nothing in this Section limits
the restrictions on disposition of Collateral set forth elsewhere in this
Agreement.

  5.5  Negative Covenants.  Except as may be permitted in the Schedule*,
Borrower shall not, without Greyrock's prior written consent, do any of the
following:  (i) merge or consolidate with another corporation or entity**; (ii)
acquire any assets, except in the ordinary course of business ***; (iii) enter
into any other transaction outside the ordinary course of business ++++; (iv)
sell or transfer any Collateral, except that, provided no Default or Event of
Default has occurred and is continuing, Borrower may (a) sell finished Inventory
in the ordinary course of Borrower's business, and (b) sell Equipment in the
ordinary course of business, in good-faith arm's length transactions; (v) store
any Inventory or other Collateral with any warehouseman or other third party;
(vi) sell any Inventory on a sale-or-return, guaranteed sale, consignment, or
other contingent basis; (vii) make any loans of any money or other assets****;
(viii) incur any debts, outside the ordinary course of business, which would
have a material, adverse effect on Borrower or on the prospect of repayment of
the Obligations; (ix) guarantee or otherwise become liable with respect to the
obligations of another party or entity +; (x) pay or declare any dividends on
Borrower's stock (except for dividends payable solely in stock of Borrower);
(xi) redeem, retire, purchase or otherwise acquire, directly or indirectly, any
of Borrower's stock ++; (xii) make any change in Borrower's capital structure
which would have a material adverse effect on Borrower or on the prospect of
repayment of the Obligations; or (xiii) dissolve or elect to dissolve; or (xiv)
agree to do any of the foregoing. +++

  *or as set forth in the Schedule

  **, except in a transaction in which (A) the shareholders of Borrower hold at
least 50% of the common stock and all other capital stock of the surviving
corporation immediately after such merger or consolidation, (B) Borrower is the
surviving corporation and (C) no Default or Event of Default shall exist either
immediately prior to or after giving effect to the transaction;

  *** or except in a transaction or a series of transactions not involving the
payment of an aggregate amount in excess of $300,000, provided that no Default
or event of Default shall exist either immediately prior to or after giving
effect to the transaction;

  **** except (A) advances to customers or suppliers, in each case, if created,
acquired or made in the ordinary course of business, (B) travel advances,
employee relocation loans and other employee loans and advances in the ordinary
course of business, (C) loans to employees, officers and directors for the
purpose of purchasing equity securities of Borrower, (D) other loans to officers
and employees approved by the Board of Directors of Borrower, and (E) other
loans and extensions of credit not otherwise permitted hereunder, provided that
the aggregate amount of all of the foregoing items (A) through (E) shall not
exceed $300,000 at any one time outstanding, and provided, further, that no
Default or event of Default shall exist either immediately prior to or after
giving effect to the making of any of the foregoing advances, loans or other
extensions of credit;

  +(except by endorsements of instruments or items of payment for deposit to the
general account of Borrower or which are transmitted or turned over to Greyrock
on account of the Obligations, except that Borrower may issue guarantees in the
ordinary course of its business in an aggregate amount at any one time
outstanding not to exceed $250,000);

  ++, except that Borrower may repurchase stock owned by employees, directors
and consultants of Borrower pursuant to terms of employment, consulting or other
stock restriction agreements at such time as any such employee, director or
consultant terminates his or her affiliation with Borrower, provided that no
Default or event of Default shall exist either immediately prior to or after
giving effect to any such repurchase and provided that the aggregate purchase
price so paid in any fiscal year shall not exceed $100,000;

  +++ The provisions of this Section 5.5 shall not prohibit (i) issuance by
Borrower of common stock upon exercise of stock options, (ii) sale of shares of
Borrower's capital stock for cash, (iii) issuance of convertible debentures
subordinate in all respects to the

                                      -5-
<PAGE>

Obligations pursuant to subordination provisions acceptable to Greyrock in its
discretion, (iv) sale by Borrower of worn out or obsolete equipment not to
exceed $100,000 in any fiscal year, (v) indebtedness for borrowed money existing
on the date of this Agreement to the extent listed and described on Exhibit A
hereto, (vi) Borrower from incurring indebtedness for or with respect to capital
leases or for the purchase price of capital assets incurred in the ordinary
course of business so long as the aggregate amount of indebtedness permitted by
this clause (vi) shall not exceed $1,000,000 in any fiscal year, (vii)
indebtedness of Borrower to subsidiaries incurred in the ordinary course of
business and consistent with past practices, (viii) extensions, refinancings,
modifications, amendments and restatements of any of the items of permitted
indebtedness set forth above in this sentence, provided that the amount thereof
is not increased and the terms thereof are not modified to impose more
burdensome terms upon Borrower, outside of the ordinary course of Borrower's
business.

  ++++other than transactions permitted by the other provisions of this Section
5.5

  5.6  Litigation Cooperation.  Should any third-party suit or proceeding be
instituted by or against Greyrock with respect to any Collateral or in any
manner relating to Borrower, Borrower shall, without expense to Greyrock, make
available Borrower and its officers, employees and agents, and Borrower's books
and records, without charge, to the extent that Greyrock may deem them
reasonably necessary in order to prosecute or defend any such suit or
proceeding.

  5.7  Notification of Changes.  Borrower will promptly notify Greyrock in
writing of any change in its officers or directors, the opening of any new bank
account or other deposit account, and any material adverse change in the
business or financial affairs of Borrower.

  5.8  Investment Property. Upon the request of Greyrock, Borrower shall deliver
to Greyrock all certificated securities included in Investment Property, with
all necessary endorsements, and obtain such account control agreements with
securities intermediaries and take such other action with respect to any
Investment Property, as Greyrock shall request, in form and substance
satisfactory to Greyrock. Borrower shall have the right to retain all Investment
Property payments and distributions, unless and until a Default or an Event of
Default has occurred.  If a Default or an Event of Default exists, Borrower
shall hold all payments on, and proceeds of, and distributions with respect to,
Investment Property in trust for Greyrock, and Borrower shall deliver all such
payments, proceeds and distributions to Greyrock, immediately upon receipt, in
their original form, duly endorsed, to be applied to the Obligations in such
order as Greyrock shall determine.  Upon the request of Greyrock, any such
distributions and payments with respect to any Investment Property held in any
securities account shall be held and retained in such securities account as part
of the Collateral.

  5.9  Further Assurances.  Borrower agrees, at its expense, on request by
Greyrock, to execute all documents and take all actions, as Greyrock may deem
reasonably necessary or useful in order to perfect and maintain Greyrock's
perfected security interest in the Collateral, and in order to fully consummate
the transactions contemplated by this Agreement.

  5.10 Indemnity.  Borrower hereby agrees to indemnify Greyrock and hold
Greyrock harmless from and against any and all claims, debts, liabilities,
demands, obligations, actions, causes of action, penalties, costs and expenses
(including attorneys' fees), of every nature, character and description *, which
Greyrock may sustain or incur based upon or arising out of any of the
Obligations, any actual or alleged failure to collect and pay over any
withholding or other tax relating to Borrower or its employees, any relationship
or agreement between Greyrock and Borrower, any actual or alleged failure of
Greyrock to comply with any writ of attachment or other legal process relating
to Borrower or any of its property, or any other matter, cause or thing
whatsoever occurred, done, omitted or suffered to be done by Greyrock relating
to Borrower or the Obligations (except any such amounts sustained or incurred as
the result of the gross negligence or willful misconduct of Greyrock or any of
its directors, officers, employees, agents, attorneys, or any other person
affiliated with or representing Greyrock).  Notwithstanding any provision in
this Agreement to the contrary, the indemnity agreement set forth in this
Section shall survive any termination of this Agreement and shall for all
purposes continue in full force and effect.

  * which are asserted by third parties (i.e., a Person other than Borrower),

6.  TERM.

  6.1  Maturity Date.  This Agreement shall continue in effect until the
maturity date set forth on the Schedule (the Maturity Date); provided that the
Maturity Date shall automatically be extended, and this Agreement shall
automatically and continuously renew, for successive additional terms of one
year each, unless one party gives written notice to the other, not less than
sixty days prior to the next Maturity Date, that such party elects to terminate
this Agreement effective on the next Maturity Date.

  6.2  Early Termination.  This Agreement may be terminated prior to the
Maturity Date as follows:  (i) by Borrower, effective three business days after
written notice of termination is given to Greyrock; or (ii) by Greyrock at any
time after the occurrence of an Event of Default, without notice, effective
immediately.  If this Agreement is terminated by Borrower or by Greyrock under
this Section 6.2, Borrower shall pay to Greyrock a termination fee (the
Termination Fee) in the amount shown on the Schedule.  The Termination Fee shall
be due and payable on the effective date of termination and thereafter shall
bear

                                      -6-
<PAGE>

     Greyrock Capital                            Loan and Security Agreement
--------------------------------------------------------------------------------

interest at a rate equal to the highest rate applicable to any of the
Obligations.

  6.3  Payment of Obligations.  On the Maturity Date or on any earlier effective
date of termination, Borrower shall pay and perform in full all Obligations,
whether evidenced by installment notes or otherwise, and whether or not all or
any part of such Obligations are otherwise then due and payable.  Without
limiting the generality of the foregoing, if on the Maturity Date, or on any
earlier effective date of termination, there are any outstanding letters of
credit issued based upon an application, guarantee, indemnity or similar
agreement on the part of Greyrock, then on such date Borrower shall provide to
Greyrock cash collateral in an amount equal to 110% of the face amount of all
such letters of credit plus all interest, fees and costs due or (in Greyrock's
estimation) likely to become due in connection therewith, to secure all of the
Obligations relating to said letters of credit, pursuant to Greyrock's then
standard form cash pledge agreement.  Notwithstanding any termination of this
Agreement, all of Greyrock's security interests in all of the Collateral and all
of the terms and provisions of this Agreement shall continue in full force and
effect until all Obligations have been paid and performed in full; provided
that, without limiting the fact that Loans are subject to the discretion of
Greyrock, Greyrock may, in its sole discretion, refuse to make any further Loans
after termination.  No termination shall in any way affect or impair any right
or remedy of Greyrock, nor shall any such termination relieve Borrower of any
Obligation to Greyrock, until all of the Obligations have been paid and
performed in full.  Upon payment and performance in full of all the Obligations
and termination of this Agreement, Greyrock shall promptly deliver to Borrower
termination statements, requests for reconveyances and such other documents as
may be reasonably required to terminate Greyrock's security interests.

7.  EVENTS OF DEFAULT AND REMEDIES.

  7.1  Events of Default.  The  occurrence of any of the following events shall
constitute an Event of Default under this Agreement, and Borrower shall give
Greyrock immediate written notice thereof: (a) Any warranty, representation,
statement, report or certificate made or delivered to Greyrock by Borrower or
any of Borrower's officers, employees or agents, now or in the future, shall be
untrue or misleading in a material respect; or (b) Borrower shall fail to pay
when due any Loan or any interest thereon or any other monetary Obligation; or
(c) the total Loans and other Obligations outstanding at any time shall exceed
the Credit Limit; or (d) Borrower shall fail to perform any non-monetary
Obligation which by its nature cannot be cured; or (e) Borrower shall fail to
perform any other non-monetary Obligation, which failure is not cured within *
business days after the date performance is due; or (f) any levy, assessment,
attachment, seizure, lien or encumbrance (other than a Permitted Lien) is made
on all or any part of the Collateral which is not cured within 10 days after the
occurrence of the same; or (g) any default or event of default occurs under any
obligation secured by a Permitted Lien, which is not cured within any applicable
cure period or waived in writing by the holder of the Permitted Lien; or (h)
Borrower breaches any material contract or obligation, which has or may
reasonably be expected to have a material adverse effect on Borrower's business
or financial condition; or (i) dissolution, termination of existence, insolvency
or business failure of Borrower or any Guarantor; or appointment of a receiver,
trustee or custodian, for all or any part of the property of, assignment for the
benefit of creditors by, or the commencement of any proceeding by Borrower or
any Guarantor under any reorganization, bankruptcy, insolvency, arrangement,
readjustment of debt, dissolution or liquidation law or statute of any
jurisdiction, now or in the future in effect; or (j) the commencement of any
proceeding against Borrower or any Guarantor under any reorganization,
bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or
liquidation law or statute of any jurisdiction, now or in the future in effect,
which is not cured by the dismissal thereof within 45 days after the date
commenced; or (k) revocation or termination of, or limitation or denial of
liability upon, any guaranty of the Obligations or any attempt to do any of the
foregoing; or (l) revocation or termination of, or limitation or denial of
liability upon, any pledge of any certificate of deposit, securities or other
property or asset pledged by any third party to secure any or all of the
Obligations, or any attempt to do any of the foregoing, or commencement of
proceedings by or against any such third party under any bankruptcy or
insolvency law; or (m) Borrower makes any payment on account of any indebtedness
or obligation which has been subordinated to the Obligations other than as
permitted in the applicable subordination agreement, or if any Person who has
subordinated such indebtedness or obligations terminates or in any way limits or
terminates its subordination agreement; or (n) there shall be a change in the
record or beneficial ownership of an aggregate of more than 20% of the
outstanding shares of stock of Borrower, in one or more transactions, compared
to the ownership of outstanding shares of stock of Borrower in effect on the
date hereof, without the prior written consent of Greyrock; or (o) Borrower
shall generally not pay its debts as they become due, or Borrower shall conceal,
remove or transfer any part of its property, with intent to hinder, delay or
defraud its creditors, or make or suffer any transfer of any of its property
which may be fraudulent under any bankruptcy, fraudulent conveyance or similar
law; or (p) there shall be a material adverse change in Borrower's business or
financial condition.  Greyrock may cease making any Loans hereunder during any
of the above cure periods, and thereafter if an Event of Default has occurred.

  *10

  7.2  Remedies.  Upon the occurrence and during the continuance of any Event of
Default, and at any time thereafter, Greyrock, at its option, and without notice
or demand of any kind (all of which are hereby expressly waived by Borrower)*,
may do any one or more of the following: (a) Cease making Loans or otherwise
extending credit to Borrower under this Agreement or any other document or
agreement; (b) Accelerate and declare all or

                                      -7-
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     Greyrock Capital                            Loan and Security Agreement
--------------------------------------------------------------------------------

any part of the Obligations to be immediately due, payable, and performable,
notwithstanding any deferred or installment payments allowed by any instrument
evidencing or relating to any Obligation; (c) Take possession of any or all of
the Collateral wherever it may be found, and for that purpose Borrower hereby
authorizes Greyrock without judicial process to enter onto any of Borrower's
premises without interference to search for, take possession of, keep, store, or
remove any of the Collateral, and remain on the premises or cause a custodian to
remain on the premises in exclusive control thereof, without charge for so long
as Greyrock deems it reasonably necessary in order to complete the enforcement
of its rights under this Agreement or any other agreement; provided, however,
that should Greyrock seek to take possession of any of the Collateral by Court
process, Borrower hereby irrevocably waives: (i) any bond and any surety or
security relating thereto required by any statute, court rule or otherwise as an
incident to such possession; (ii) any demand for possession prior to the
commencement of any suit or action to recover possession thereof; and (iii) any
requirement that Greyrock retain possession of, and not dispose of, any such
Collateral until after trial or final judgment; (d) Require Borrower to assemble
any or all of the Collateral and make it available to Greyrock at places
designated by Greyrock which are reasonably convenient to Greyrock and Borrower,
and to remove the Collateral to such locations as Greyrock may deem advisable;
(e) Complete the processing, manufacturing or repair of any Collateral prior to
a disposition thereof and, for such purpose and for the purpose of removal,
Greyrock shall have the right to use Borrower's premises, vehicles, hoists,
lifts, cranes, equipment and all other property without charge; (f) Collect,
receive, dispose of and realize upon any Investment Property, including
withdrawal of any and all funds from any securities accounts; (g) Sell, lease or
otherwise dispose of any of the Collateral, in its condition at the time
Greyrock obtains possession of it or after further manufacturing, processing or
repair, at one or more public and/or private sales, in lots or in bulk, for
cash, exchange or other property, or on credit, and to adjourn any such sale
from time to time without notice other than oral announcement at the time
scheduled for sale. Greyrock shall have the right to conduct such disposition on
Borrower's premises without charge, for such time or times as Greyrock deems
reasonable, or on Greyrock's premises, or elsewhere and the Collateral need not
be located at the place of disposition. Greyrock may directly or through any
affiliated company purchase or lease any Collateral at any such public
disposition, and if permissible under applicable law, at any private
disposition. Any sale or other disposition of Collateral shall not relieve
Borrower of any liability Borrower may have if any Collateral is defective as to
title or physical condition or otherwise at the time of sale; (h) Demand payment
of, and collect any Receivables and General Intangibles comprising Collateral
and, in connection therewith, Borrower irrevocably authorizes Greyrock to
endorse or sign Borrower's name on all collections, receipts, instruments and
other documents, to take possession of and open mail addressed to Borrower and
remove therefrom payments made with respect to any item of the Collateral or
proceeds thereof, and, in Greyrock's sole discretion, to grant extensions of
time to pay, compromise claims and settle Receivables, General Intangibles and
the like for less than face value; and (i) Demand and receive possession of any
of Borrower's federal and state income tax returns and the books and records
utilized in the preparation thereof or referring thereto. Borrower recognizes
that Greyrock may be unable to make a public sale of any or all of the
Investment Property, by reasons of prohibitions contained in applicable
securities laws or otherwise, and expressly agrees that a private sale to a
restricted group of purchasers for investment and not with a view to any
distribution thereof shall be considered a commercially reasonable sale. All
reasonable attorneys' fees, expenses, costs, liabilities and obligations
incurred by Greyrock with respect to the foregoing shall be added to and become
part of the Obligations, shall be due on demand, and shall bear interest at a
rate equal to the highest interest rate applicable to any of the Obligations.

  *except that, prior or concurrently with the taking of the first of any of the
following actions, Greyrock shall give Borrower one general written notice
stating that Greyrock is "proceeding to exercise its rights and remedies" or
words to that effect

  7.3  Standards for Determining Commercial Reasonableness.  Borrower and
Greyrock agree that a sale or other disposition (collectively, sale) of any
Collateral which complies with the following standards will conclusively be
deemed to be commercially reasonable:  (i) Notice of the sale is given to
Borrower at least seven days prior to the sale, and, in the case of a public
sale, notice of the sale is published at least seven days before the sale in a
newspaper of general circulation in the county where the sale is to be
conducted; (ii) Notice of the sale describes the collateral in general, non-
specific terms; (iii) The sale is conducted at a place designated by Greyrock,
with or without the Collateral being present; (iv) The sale commences at any
time between 8:00 a.m. and 6:00 p.m; (v) Payment of the purchase price in cash
or by cashier's check or wire transfer is required; (vi) With respect to any
sale of any of the Collateral, Greyrock may (but is not obligated to) direct any
prospective purchaser to ascertain directly from Borrower any and all
information concerning the same.  Greyrock shall be free to employ other methods
of noticing and selling the Collateral, in its discretion, if they are
commercially reasonable.

  7.4  Power of Attorney.  Upon the occurrence and during the continuance of any
Event of Default, without limiting Greyrock's other rights and remedies,
Borrower grants to Greyrock an irrevocable power of attorney coupled with an
interest, authorizing and permitting Greyrock (acting through any of its
employees, attorneys or agents) at any time, at its option, but without
obligation, with or without notice to Borrower, and at Borrower's expense, to do
any or all of the following, in Borrower's name or otherwise, but Greyrock
agrees to exercise the following powers in a commercially reasonable manner:

                                      -8-
<PAGE>

  Greyrock Capital                                 Loan and Security Agreement
--------------------------------------------------------------------------------

(a)  Execute on behalf of Borrower any documents that Greyrock may, in its sole
discretion, deem advisable in order to perfect and maintain Greyrock's security
interest in the Collateral, or in order to exercise a right of Borrower or
Greyrock, or in order to fully consummate all the transactions contemplated
under this Agreement, and all other present and future agreements; (b) Execute
on behalf of Borrower any document exercising, transferring or assigning any
option to purchase, sell or otherwise dispose of or to lease (as lessor or
lessee) any real or personal property which is part of Greyrock's Collateral or
in which Greyrock has an interest; (c) Execute on behalf of Borrower, any
invoices relating to any Receivable, any draft against any Account Debtor and
any notice to any Account Debtor, any proof of claim in bankruptcy, any Notice
of Lien, claim of mechanic's, materialman's or other lien, or assignment or
satisfaction of mechanic's, materialman's or other lien; (d) Take control in any
manner of any cash or non-cash items of payment or proceeds of Collateral;
endorse the name of Borrower upon any instruments, or documents, evidence of
payment or Collateral that may come into Greyrock's possession; (e) Endorse all
checks and other forms of remittances received by Greyrock; (f) Pay, contest or
settle any lien, charge, encumbrance, security interest and adverse claim in or
to any of the Collateral, or any judgment based thereon, or otherwise take any
action to terminate or discharge the same; (g) Grant extensions of time to pay,
compromise claims and settle Receivables and General Intangibles for less than
face value and execute all releases and other documents in connection therewith;
(h) Pay any sums required on account of Borrower's taxes or to secure the
release of any liens therefor, or both; (i) Settle and adjust, and give releases
of, any insurance claim that relates to any of the Collateral and obtain payment
therefor; (j) Instruct any third party having custody or control of any books or
records belonging to, or relating to, Borrower to give Greyrock the same rights
of access and other rights with respect thereto as Greyrock has under this
Agreement; (k) Execute and deliver to any securities intermediary or other
Person any entitlement order, account control agreement or other notice,
document or instrument with respect to any Investment Property, and (l) Take any
action or pay any sum required of Borrower pursuant to this Agreement and any
other present or future agreements. Any and all reasonable sums paid and any and
all reasonable costs, expenses, liabilities, obligations and reasonable
attorneys' fees incurred by Greyrock with respect to the foregoing shall be
added to and become part of the Obligations, shall be payable on demand, and
shall bear interest at a rate equal to the highest interest rate applicable to
any of the Obligations. In no event shall Greyrock's rights under the foregoing
power of attorney or any of Greyrock's other rights under this Agreement be
deemed to indicate that Greyrock is in control of the business, management or
properties of Borrower.

     7.5  Application of Proceeds.  All proceeds realized as the result of any
sale or other disposition of the Collateral shall be applied by Greyrock first
to the reasonable costs, expenses, liabilities, obligations and attorneys' fees
incurred by Greyrock in the exercise of its rights under this Agreement, second
to the interest due upon any of the Obligations, and third to the principal of
the Obligations, in such order as Greyrock shall determine in its sole
discretion. Any surplus shall be paid to Borrower or other persons legally
entitled thereto; Borrower shall remain liable to Greyrock for any deficiency.
If Greyrock, in its sole discretion, directly or indirectly enters into a
deferred payment or other credit transaction with any purchaser at any sale of
Collateral, Greyrock shall have the option, exercisable at any time, in its sole
discretion, of either reducing the Obligations by the principal amount of
purchase price or deferring the reduction of the Obligations until the actual
receipt by Greyrock of the cash therefor.

     7.6  Remedies Cumulative.  In addition to the rights and remedies set forth
in this Agreement, Greyrock shall have all the other rights and remedies
accorded a secured party under the California Uniform Commercial Code and under
all other applicable laws, and under any other instrument or agreement now or in
the future entered into between Greyrock and Borrower, and all of such rights
and remedies are cumulative and none is exclusive. Exercise or partial exercise
by Greyrock of one or more of its rights or remedies shall not be deemed an
election, nor bar Greyrock from subsequent exercise or partial exercise of any
other rights or remedies. The failure or delay of Greyrock to exercise any
rights or remedies shall not operate as a waiver thereof, but all rights and
remedies shall continue in full force and effect until all of the Obligations
have been fully paid and performed.

8.   DEFINITIONS.  As used in this Agreement, the following terms have the
following meanings:

     Account Debtor means the obligor on a Receivable.
     --------------

     Affiliate means, with respect to any Person, a relative, partner,
     ---------
shareholder, director, officer, or employee of such Person, or any parent or
subsidiary of such Person, or any Person controlling, controlled by or under
common control with such Person.

     Agreement and this Agreement means this Loan and Security Agreement and all
     ---------     --------------
modifications and amendments thereto, extensions thereof, and replacements
therefor.

     Business Day means a day on which Greyrock is open for business.
     ------------

     Code means the Uniform Commercial Code as adopted and in effect in the
     ----
State of California from time to time.

     Collateral has the meaning set forth in Section 2.1 above.
     ----------

     Default means any event which with notice or passage of time or both, would
     -------
constitute an Event of Default.

     Deposit Account has the meaning set forth in Section 9105 of the Code.
     ---------------

     Eligible Receivables means unconditional Receivables arising in the
     --------------------
ordinary course of Borrower's business from the completed sale of goods or
rendition of

                                      -9-
<PAGE>

  Greyrock Capital                                 Loan and Security Agreement
--------------------------------------------------------------------------------

services, which Greyrock, in its sole judgment, shall deem eligible
for borrowing, based on such considerations as Greyrock may from time to time
deem appropriate.

     Equipment means all of Borrower's present and hereafter acquired machinery,
     ---------
molds, machine tools, motors, furniture, equipment, furnishings, fixtures, trade
fixtures, motor vehicles, tools, parts, dyes, jigs, goods and other tangible
personal property (other than Inventory) of every kind and description used in
Borrower's operations or owned by Borrower and any interest in any of the
foregoing, and all attachments, accessories, accessions, replacements,
substitutions, additions or improvements to any of the foregoing, wherever
located.

     Event of Default means any of the events set forth in Section 7.1 of this
     ----------------
Agreement.

     General Intangibles means all general intangibles of Borrower, whether now
     -------------------
owned or hereafter created or acquired by Borrower, including, without
limitation, all choses in action, causes of action, corporate or other business
records, Deposit Accounts, inventions, designs, drawings, blueprints, patents,
patent applications, trademarks and the goodwill of the business symbolized
thereby, names, trade names, trade secrets, goodwill, copyrights, registrations,
licenses, franchises, customer lists, security and other deposits, rights in all
litigation presently or hereafter pending for any cause or claim (whether in
contract, tort or otherwise), and all judgments now or hereafter arising
therefrom, all claims of Borrower against Greyrock, rights to purchase or sell
real or personal property, rights as a licensor or licensee of any kind,
royalties, telephone numbers, proprietary information, purchase orders, and all
insurance policies and claims (including life insurance, key man insurance,
credit insurance, liability insurance, property insurance and other insurance),
tax refunds and claims, computer programs, discs, tapes and tape files, claims
under guaranties, security interests or other security held by or granted to
Borrower, all rights to indemnification and all other intangible property of
every kind and nature (other than Receivables).

     Guarantor means any Person who has guaranteed any of the Obligations.
     ---------

     Inventory means all of Borrower's now owned and hereafter acquired goods,
     ---------
merchandise or other personal property, wherever located, to be furnished under
any contract of service or held for sale or lease (including all raw materials,
work in process, finished goods and goods in transit), and all materials and
supplies of every kind, nature and description which are or might be used or
consumed in Borrower's business or used in connection with the manufacture,
packing, shipping, advertising, selling or finishing of such goods, merchandise
or other personal property, and all warehouse receipts, documents of title and
other documents representing any of the foregoing.

     Investment Property means any and all investment property of Borrower,
     -------------------
including all securities, whether certificated or uncertificated, security
entitlements, securities accounts, commodity contracts and commodity accounts,
and all financial assets held in any securities account or otherwise, wherever
located, and whether now existing or hereafter acquired or arising.

     Obligations means all present and future Loans, advances, debts,
     -----------
liabilities, obligations, guaranties, covenants, duties and indebtedness at any
time owing by Borrower to Greyrock, whether evidenced by this Agreement or any
note or other instrument or document, whether arising from an extension of
credit, opening of a letter of credit, banker's acceptance, loan, guaranty,
indemnification or otherwise, whether direct or indirect (including, without
limitation, those acquired by assignment and any participation by Greyrock in
Borrower's debts owing to others), absolute or contingent, due or to become due,
including, without limitation, all interest, charges, expenses, fees, attorney's
fees, expert witness fees, audit fees, letter of credit fees, loan fees,
termination fees, minimum interest charges and any other sums chargeable to
Borrower under this Agreement or under any other present or future instrument or
agreement between Borrower and Greyrock.

     Permitted Liens means the following: (i) purchase money security interests
     ---------------
in specific items of Equipment; (ii) leases of specific items of Equipment;
(iii) liens for taxes *; (iv) additional security interests and liens which are
subordinate to the security interest in favor of Greyrock and are consented to
in writing by Greyrock (which consent shall not be unreasonably withheld); (v)
security interests being terminated substantially concurrently with this
Agreement; (vi) liens of materialmen, mechanics, warehousemen, carriers, or
other similar liens arising in the ordinary course of business and securing
obligations which are not delinquent; ** (vii) liens incurred in connection with
the extension, renewal or refinancing of the indebtedness secured by liens of
the type described above in clauses (i) *** above, provided that any extension,
renewal or replacement lien is limited to the property encumbered by the
existing lien and the principal amount of the indebtedness being extended,
renewed or refinanced does not increase; (viii) Liens in favor of customs and
revenue authorities which secure payment of customs duties in connection with
the importation of goods. Greyrock will have the right to require, as a
condition to its consent under subparagraph (iv) above, that the holder of the
additional security interest or lien sign an intercreditor agreement on
Greyrock's then standard form, acknowledge that the security interest is
subordinate to the security interest in favor of Greyrock, and agree not to take
any action to enforce its subordinate security interest so long as any
Obligations remain outstanding, and that Borrower agree that any uncured default
in any obligation secured by the subordinate security interest shall also
constitute an Event of Default under this Agreement.

     *,  fees, assessments or other governmental charges or levies, either not
delinquent or being contested in good faith by appropriate proceedings, provided
the same have no priority over any of Greyrock's security interests

                                      -10-
<PAGE>

  Greyrock Capital                                 Loan and Security Agreement
--------------------------------------------------------------------------------

     **   more than 45 days or are being contested in good faith by appropriate
proceedings, (vi-a) any judgment, attachment or similar lien, unless the
judgment it secures is not fully covered by insurance and has not been
discharged or execution thereof effectively stayed and bonded against pending
appeal within 30 days of the entry thereof, provided that, if the judgment is
not fully covered by insurance or execution thereof has not been so stayed and
bonded, Greyrock shall not be required to make any Loans or otherwise extend
credit to or for the benefit of Borrower; (vi-b) liens (1) upon or in any
equipment acquired or to be acquired, held or leased by the Borrower to secure
the purchase price of such equipment or indebtedness incurred solely for the
purpose of financing the acquisition of such equipment or (2) existing on such
equipment at the time of its acquisition or lease, provided that the lien is
                                                   --------
confined solely to the equipment so acquired and improvements thereon; (vi-c)
liens securing reimbursement obligations of Borrower with respect to commercial
letters of credit, provided that such encumbrances shall attach only to
documents or other property relating to such letters of credit and products and
proceeds thereof that are not Collateral under this Agreement subsequent to the
delivery of such property to Borrower; (vi-d) liens which constitute rights of
set-off of a customary nature or bankers' liens on amounts on deposit, whether
arising by contract or by operation of law, in connection with arrangements
entered into with depository institutions in the ordinary course of business;
(vi-e) liens in existence on the date hereof and listed on Exhibit B hereto;

     ***  through (vi)

     Person means any individual, sole proprietorship, partnership, joint
     ------
venture, trust, unincorporated organization, association, corporation,
government, or any agency or political division thereof, or any other entity.

     Receivables means all of Borrower's now owned and hereafter acquired
     -----------
accounts (whether or not earned by performance), letters of credit, contract
rights, chattel paper, instruments, documents and all other forms of obligations
at any time owing to Borrower, all guaranties and other security therefor, all
merchandise returned to or repossessed by Borrower, and all rights of stoppage
in transit and all other rights or remedies of an unpaid vendor, lienor or
secured party.

     Other Terms. All accounting terms used in this Agreement, unless otherwise
     -----------
indicated, shall have the meanings given to such terms in accordance with
generally accepted accounting principles, consistently applied.  All other terms
contained in this Agreement, unless otherwise indicated, shall have the meanings
provided by the Code, to the extent such terms are defined therein.

9.   GENERAL PROVISIONS.

     9.1  Interest Computation. In computing interest on the Obligations, all
checks, wire transfers and other items of payment received by Greyrock
(including proceeds of Receivables and payment of the Obligations in full) shall
be deemed applied by Greyrock on account of the Obligations three Business Days
after receipt by Greyrock of immediately available funds.  Greyrock shall not,
however, be required to credit Borrower's account for the amount of any item of
payment which is unsatisfactory to Greyrock in its discretion, and Greyrock may
charge Borrower's Loan account for the amount of any item of payment which is
returned to Greyrock unpaid.

     9.2  Application of Payments. All payments with respect to the Obligations
may be applied, and in Greyrock's sole discretion reversed and re-applied, to
the Obligations, in such order and manner as Greyrock shall determine in its
sole discretion.

     9.3  Charges to Account. Greyrock may, in its discretion, require that
Borrower pay monetary Obligations in cash to Greyrock *, to Borrower's Loan
account, in which event they will bear interest at the same rate applicable to
the Loans.

     *    if Borrower does not have Loans available to it hereunder in the
amount of such Obligations; otherwise Greyrock shall charge monetary Obligations

     9.4  Monthly Accountings.  Greyrock shall provide Borrower monthly with an
account of advances, charges, expenses and payments made pursuant to this
Agreement. Such account shall be deemed correct, accurate and binding on
Borrower and an account stated (except for reverses and reapplications of
payments made and corrections of errors discovered by Greyrock), unless Borrower
notifies Greyrock in writing to the contrary within sixty days after each
account is rendered, describing the nature of any alleged errors or admissions.

     9.5  Notices.  All notices to be given under this Agreement shall be in
writing and shall be given either personally or by reputable private delivery
service or by regular first-class mail, or certified mail return receipt
requested, addressed to Greyrock or Borrower at the addresses shown in the
heading to this Agreement, or at any other address designated in writing by one
party to the other party. All notices shall be deemed to have been given upon
delivery in the case of notices personally delivered, or at the expiration of
one business day following delivery to the private delivery service, or two
business days following the deposit thereof in the United States mail, with
postage prepaid.

     9.6  Severability.  Should any provision of this Agreement be held by any
court of competent jurisdiction to be void or unenforceable, such defect shall
not affect the

                                      -11-
<PAGE>

  Greyrock Capital                                 Loan and Security Agreement
--------------------------------------------------------------------------------

remainder of this Agreement, which shall continue in full force and effect.

     9.7  Integration.  This Agreement and such other written agreements,
documents and instruments as may be executed in connection herewith are the
final, entire and complete agreement between Borrower and Greyrock and supersede
all prior and contemporaneous negotiations and oral representations and
agreements, all of which are merged and integrated in this Agreement. There are
no oral understandings, representations or agreements between the parties which
are not set forth in this Agreement or in other written agreements signed by the
parties in connection herewith.

     9.8  Waivers.  The failure of Greyrock at any time or times to require
Borrower to strictly comply with any of the provisions of this Agreement or any
other present or future agreement between Borrower and Greyrock shall not waive
or diminish any right of Greyrock later to demand and receive strict compliance
therewith.  Any waiver of any default shall not waive or affect any other
default, whether prior or subsequent, and whether or not similar.  None of the
provisions of this Agreement or any other agreement now or in the future
executed by Borrower and delivered to Greyrock shall be deemed to have been
waived by any act or knowledge of Greyrock or its agents or employees, but only
by a specific written waiver signed by an authorized officer of Greyrock and
delivered to Borrower.  Borrower waives demand, protest, notice of protest and
notice of default or dishonor, notice of payment and nonpayment, release,
compromise, settlement, extension or renewal of any commercial paper,
instrument, account, General Intangible, document or guaranty at any time held
by Greyrock on which Borrower is or may in any way be liable, and notice of any
action taken by Greyrock, unless expressly required by this Agreement.

     9.9  Amendment.  The terms and provisions of this Agreement may not be
waived or amended, except in a writing executed by Borrower and a duly
authorized officer of Greyrock.

     9.10 Time of Essence.  Time is of the essence in the performance by
Borrower of each and every obligation under this Agreement.

     9.11 Attorneys Fees and Costs.  Borrower shall reimburse Greyrock for all
reasonable attorneys' fees and all filing, recording, search, title insurance,
appraisal, audit, and other reasonable costs incurred by Greyrock, pursuant to,
or in connection with, or relating to this Agreement (whether or not a lawsuit
is filed), including, but not limited to, any reasonable attorneys' fees and
costs Greyrock incurs in order to do the following: prepare and negotiate this
Agreement and the documents relating to this Agreement; obtain legal advice in
connection with this Agreement or Borrower; enforce, or seek to enforce, any of
its rights; prosecute actions against, or defend actions by, Account Debtors;
commence, intervene in, or defend any action or proceeding; initiate any
complaint to be relieved of the automatic stay in bankruptcy; file or prosecute
any probate claim, bankruptcy claim, third-party claim, or other claim; examine,
audit, copy, and inspect any of the Collateral or any of Borrower's books and
records; protect, obtain possession of, lease, dispose of, or otherwise enforce
Greyrock's security interest in, the Collateral; and otherwise represent
Greyrock in any litigation relating to Borrower.  If either Greyrock or Borrower
files any lawsuit against the other predicated on a breach of this Agreement,
the prevailing party in such action shall be entitled to recover its reasonable
costs and attorneys' fees, including (but not limited to) reasonable attorneys'
fees and costs incurred in the enforcement of, execution upon or defense of any
order, decree, award or judgment.  All attorneys' fees and costs to which
Greyrock may be entitled pursuant to this Paragraph shall immediately become
part of Borrower's Obligations, shall be due on demand, and shall bear interest
at a rate equal to the highest interest rate applicable to any of the
Obligations.

     9.12 Benefit of Agreement. The provisions of this Agreement shall be
binding upon and inure to the benefit of the respective successors, assigns,
heirs, beneficiaries and representatives of Borrower and Greyrock; provided,
however, that Borrower may not assign or transfer any of its rights under this
Agreement without the prior written consent of Greyrock, and any prohibited
assignment shall be void. No consent by Greyrock to any assignment shall release
Borrower from its liability for the Obligations.

     9.13 Joint and Several Liability.  If Borrower consists of more than one
Person, their liability shall be joint and several, and the compromise of any
claim with, or the release of, any Borrower shall not constitute a compromise
with, or a release of, any other Borrower.

     9.14 Limitation of Actions. Any claim or cause of action by Borrower
against Greyrock, its directors, officers, employees, agents, accountants or
attorneys, based upon, arising from, or relating to this Loan Agreement, or any
other present or future document or agreement, or any other transaction
contemplated hereby or thereby or relating hereto or thereto, or any other
matter, cause or thing whatsoever, occurred, done, omitted or suffered to be
done by Greyrock, its directors, officers, employees, agents, accountants or
attorneys, shall be barred unless asserted by Borrower by the commencement of an
action or proceeding in a court of competent jurisdiction by the filing of a
complaint within one year after the first act, occurrence or omission upon which
such claim or cause of action, or any part thereof, is based, and the service of
a summons and complaint on an officer of Greyrock, or on any other person
authorized to accept service on behalf of Greyrock, within thirty (30) days
thereafter. Borrower agrees that such one-year period is a reasonable and
sufficient time for Borrower to investigate and act upon any such claim or cause
of action. The one-year period provided herein shall not be waived, tolled, or
extended except by the written consent of Greyrock in its sole discretion. This
provision shall survive any termination of this Loan Agreement or any other
present or future agreement.

     9.15 Paragraph Headings; Construction. Paragraph headings are only used in
this Agreement for convenience. Borrower and Greyrock acknowledge that the

                                      -12-
<PAGE>

  Greyrock Capital                                 Loan and Security Agreement
--------------------------------------------------------------------------------

headings may not describe completely the subject matter of the applicable
paragraph, and the headings shall not be used in any manner to construe, limit,
define or interpret any term or provision of this Agreement.  The term
"including", whenever used in this Agreement, shall mean "including (but not
limited to)".  This Agreement has been fully reviewed and negotiated between the
parties and no uncertainty or ambiguity in any term or provision of this
Agreement shall be construed strictly against Greyrock or Borrower under any
rule of construction or otherwise.

     9.16   Governing Law; Jurisdiction; Venue.  This Agreement and all acts and
transactions hereunder and all rights and obligations of Greyrock and Borrower
shall be governed by the laws of the State of California.  As a material part of
the consideration to Greyrock to enter into this Agreement, Borrower (i) agrees
that all actions and proceedings relating directly or indirectly to this
Agreement shall, at Greyrock's option, be litigated in courts located within
California, and that the exclusive venue therefor shall be Los Angeles County;
(ii) consents to the jurisdiction and venue of any such court and consents to
service of process in any such action or proceeding by personal delivery or any
other method permitted by law; and (iii) waives any and all rights Borrower may
have to object to the jurisdiction of any such court, or to transfer or change
the venue of any such action or proceeding.  *

     *9.16A Confidentiality.  Greyrock covenants and agrees, on a continuing
basis, to use reasonable efforts (but in no event less than the same degree of
care that it exercises with respect to its own proprietary information of the
same types) to maintain the confidentiality of and not to disclose to any person
other than its officers, directors, attorneys and accountants, affiliates,
participants, prospective participants, assignees and prospective assignees, and
such other persons to whom Greyrock shall at any time be required to make such
disclosure in accordance with applicable law, any and all proprietary, trade
secret or confidential information provided to or received by Greyrock from or
on account of Borrower or any affiliate of Borrower, including business plans
and forecasts, non-public financial information, confidential or secret
processes, formulae, devices or contractual information, customer lists,
employee relation matters, and any other information the disclosure of which
could reasonably be expected to have a material adverse impact on the business,
finances or operations of Borrower or its affiliates, provided, however, the
                                                      --------  -------
foregoing provisions shall not be effective regarding the disposition of
Collateral after an Event of Default.

     9.17   Mutual Waiver of Jury Trial. BORROWER AND GREYROCK EACH HEREBY WAIVE
THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT
OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE
INSTRUMENT OR AGREEMENT BETWEEN GREYROCK AND BORROWER, OR ANY CONDUCT, ACTS OR
OMISSIONS OF GREYROCK OR BORROWER OR ANY OF THEIR DIRECTORS, OFFICERS,
EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH GREYROCK OR
BORROWER, IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR
OTHERWISE.

     Borrower:

          INVENTA CORPORATION

          By   /s/ David A Lavanty
            ---------------------------------
               President or Vice President

     Greyrock:

          GREYROCK CAPITAL,
          a Division of Banc of America Commercial Finance Corporation

          By  /s/ Lisa Nagano
            ---------------------------------
          Title   LISA NAGANO
               ------------------------------
                  SR VICE PRESIDENT

                                      -13-
<PAGE>

[LOGO OF GREYROCK CAPITAL APPEARS HERE]

                                  Schedule to
                          Loan and Security Agreement

Borrower:  Inventa Corporation
Address:   255 Shoreline Drive, 2nd Floor
           Redwood Shores, California 94065

Date:      November 17, 1999

This Schedule is an integral part of the Loan and Security Agreement between
Greyrock Capital, a Division of Banc of America Commercial Finance Corporation
(Greyrock) and the above-borrower (Borrower) of even date.

================================================================================

1.   CREDIT LIMIT
     (Section 1.1): (a)  Credit Limit.  An amount not to exceed the sum of (1)
                         ------------
                    and (2) below:

                         (1)  The unpaid principal balance of the $4,000,000
                              Term Loan being made concurrently herewith (the
                              "Term Loan") outstanding from time to time; plus

                         (2)  The lesser of (A) or (B) below:

                              (A) $2,000,000 at any one time outstanding; or

                              (B) 80% of the amount of Borrower's Eligible
                              Receivables (as defined in Section 8 above).

                    (b)  Term Loan.
                         ---------

                         (1)  The Term Loan shall be borrowed by Borrower and
                         disbursed concurrently herewith and shall be due on the
                         earlier of (i) November 30, 2000 (the "Term Loan Due
                         Date"), or (ii) termination of this Agreement, or (iii)
                         the date of the sale of all or a substantial part of
                         the assets of the Borrower. An extension of the term of
                         this Agreement, whether pursuant to Section 6.1 or
                         otherwise, shall not extend the Term Loan Due Date.
                         Nothing herein limits the provisions of Section 5.5
                         (which requires Greyrock's consent to the actions
                         specified therein), or any of the other provisions of
                         this Agreement.

                         (2)  Accrued interest on the Term Loan shall be paid
                         monthly on the last day of each month as provided in
                         Section 1.2 above.

                                      -1-
<PAGE>

  Greyrock Capital                     Schedule to Loan and Security Agreement
--------------------------------------------------------------------------------

                         (3)  The Term Loan may not be repaid and reborrowed,
                         and the Term Loan may not be prepaid.

================================================================================

2.   INTEREST.

       Interest Rate (Section 1.2):

                          A rate equal to the "Prime Rate" plus 2% per annum,
                          calculated on the basis of a 360-day year for the
                          actual number of days elapsed, provided that the
                          interest rate in effect in each month shall not be
                          less than 8% per annum, regardless of the amount of
                          the Obligations outstanding. The interest rate
                          applicable to all Loans shall be adjusted monthly as
                          of the first day of each month, and the interest to be
                          charged for each month shall be based on the highest
                          "Prime Rate" in effect during said month. "Prime Rate"
                          means the announced "Prime Rate" or the substitute
                          therefor of the Bank of America N.A. (or its
                          successor) whether or not that rate is the lowest
                          interest rate charged by said bank. If the Prime Rate,
                          as defined, is unavailable, "Prime Rate" shall mean
                          the highest of the prime rates published in the Wall
                          Street Journal on the first business day of the month,
                          as the base rate on corporate loans at large U.S.
                          money center commercial banks.

================================================================================

3.   FEES (Section 1.3/Section 6.2):

       Loan Fee:          $50,000, payable concurrently herewith.

       Termination Fee:   Not applicable.

       NSF Check Charge:  $15.00 per item.

       Wire Transfers:    $15.00 per transfer.

================================================================================

4.   MATURITY DATE
     (Section 6.1):       November 30, 2000, subject to automatic renewal as
                          provided in Section 6.1 above, and early termination
                          as provided in Section 6.2 above.

================================================================================

5.   REPORTING.
     (Section 5.2):

                    Borrower shall provide Greyrock with the following:

                    1.    Annual financial statements, as soon as available, and
                          in any event within 90 days following the end of
                          Borrower's fiscal year, certified by independent
                          certified public accountants acceptable to Greyrock.

                    2.    Quarterly unaudited financial statements, as soon as
                          available, and in any event within 45 days after the
                          end of each fiscal quarter of Borrower.

                                      -2-
<PAGE>

  Greyrock Capital                     Schedule to Loan and Security Agreement
--------------------------------------------------------------------------------

                    3.   Monthly unaudited financial statements, as soon as
                         available, and in any event within 30 days after the
                         end of each month.

                    4.   Monthly Receivable agings, aged by invoice date, within
                         10 days after the end of each month.

                    5.   Monthly accounts payable agings, aged by invoice date,
                         and outstanding or held check registers within 10 days
                         after the end of each month.

================================================================================

6.   BORROWER INFORMATION:

       Prior Names of
       Borrower
       (Section 3.2):    None

       Prior Trade
       Names of Borrower
       (Section 3.2):    None

       Existing Trade
       Names of Borrower
       (Section 3.2):    None

       Other Locations and
       Addresses (Section 3.3):    (1) 120 Albany Place, Suite 700, New
                                   Brunswick, NJ,

                                   (2) One Lincoln Centre, Suite 120 Oakbrook
                                   Terrace, IL,

                                   (3) 12030 Sunrise Valley Drive, Suite 322,
                                   Reston VA.

       Material Adverse
       Litigation (Section 3.10):  None

================================================================================

7.   OTHER COVENANTS:

                    (1) Warrants. The Borrower shall provide Greyrock with five-
                    year warrants to purchase 160,000 shares of preferred stock
                    of the Borrower, on the terms set forth in the Warrant to
                    Purchase Stock and related documents being executed
                    concurrently with this Agreement, at $2.50 per share. Such
                    warrants shall contain such terms and provisions as Borrower
                    and Greyrock shall agree. Said warrants shall be deemed
                    fully earned on the date hereof, shall be in addition to all
                    interest and other fees, and shall be non-refundable.

                    (2)  Copyright Filings. Concurrently, Borrower is executing
                    and delivering to Greyrock a Security Agreement in
                    Copyrighted Works (the "Copyright Agreement"). As soon as
                    reasonably possible, but in any event within 45 days after
                    the date hereof, Borrower shall (i) duly file applications
                    for copyright registration with the United States Copyright
                    Office of all of Borrower's computer software, the licensing

                                      -3-
<PAGE>

  Greyrock Capital                     Schedule to Loan and Security Agreement
--------------------------------------------------------------------------------

                         of which results in Receivables, (ii) provide copies of
                         all such copyright applications to Greyrock, and (iii)
                         cooperate with Greyrock in causing the Copyright
                         Agreement to be recorded in the United States Copyright
                         Office.

Borrower:                              Greyrock:
 INVENTA CORPORATION                   GREYROCK CAPITAL,
                                       a Division of Banc of America Commercial
                                       Finance Corporation

 By  /s/ David A. Lavanty
    -------------------------------
      President or Vice President      By /s/ Lisa Nagano
                                         ---------------------------------------
                                       Title  LISA NAGANO
                                            ------------------------------------
                                              Sr. VICE PRESIDENT

                                      -4-
<PAGE>

                                   Exhibit A
                        Indebtedness for Borrowed Money
                    Existing on the Date of this Agreement
                                 (Section 5.5)

Financing provided by Silicon Valley Bank. See Tab No. 8 for amount.
<PAGE>

                                   Exhibit B
                                Existing Liens
                                 (Section 5.5)

Liens shown on that certain UCC Search in the office of the California Secretary
of State, with respect to Borrower, dated as of October 20, 1999, previously
obtained by Greyrock (other than the security interest in favor of Silicon
Valley Bank, which shall be terminated substantially concurrently herewith)
<PAGE>

                                                                   EXHIBIT 10.12
                                                                       continued

                    SECURITY AGREEMENT IN COPYRIGHTED WORKS

     This Security Agreement In Copyrighted Works (this "Agreement") is made at
Los Angeles, California as of November 17, 1999, is entered into between INVENTA
CORPORATION, a California corporation ("Grantor"), which has a mailing address
at 255 Shoreline Drive, 2nd Floor, Redwood Shores, California 94065, and
GREYROCK CAPITAL, a Division of Banc of America Commercial Finance Corporation
("Greyrock"), which has a mailing address at 10880 Wilshire Blvd., Suite 1850,
Los Angeles, CA 90024.

                                   RECITALS

     A.   Greyrock is providing financing to Grantor pursuant to the Loan and
Security Agreement of even date herewith between Greyrock and Grantor (as
amended from time to time, the "Loan Agreement"). Pursuant to the Loan
Agreement, Grantor has granted to Greyrock a security interest in all of
Grantor's present and future assets, including without limitation all of
Grantor's present and future general intangibles, and including without
limitation the "Copyrights" (as defined below), to secure all of its present and
future indebtedness, liabilities, guaranties and other obligations to Greyrock.

     B.   To supplement Greyrock's rights in the Copyrights, Grantor is
executing and delivering this Agreement.

     NOW, THEREFORE, for valuable consideration, Grantor agrees as follows:

     1.   Assignment.  To secure the complete and timely payment and performance
          ----------
of all "Obligations" (as defined in the Loan Agreement), and without limiting
any other security interest Grantor has granted to Greyrock, Grantor hereby
hypothecates to Greyrock and grants, assigns, and conveys to Greyrock a security
interest in Grantor's entire right, title, and interest in and to all of the
following, now owned and hereafter acquired (collectively, the "Collateral"):

          (a)  Registered Copyrights and Applications for Copyright
               ----------------------------------------------------
Registrations.  All of Grantor's present and future United States registered
-------------
copyrights and copyright registrations, including, without limitation, the
registered copyrights listed in Schedule A to this Agreement (and including all
                                ----------
of the exclusive rights afforded a copyright registrant in the United States
under 17 U.S.C. (S)106 and any exclusive rights which may in the future arise by
act of Congress or otherwise) and all of Grantor's present and future
applications for copyright registrations (including applications for copyright
registrations of derivative works and compilations) (collectively, the
"Registered Copyrights"), and any and all royalties, payments, and other amounts
payable to Grantor in connection with the Registered Copyrights, together with
all renewals and extensions of the Registered Copyrights, the right to recover
for all past, present, and future infringements of the Registered Copyrights,
and all computer programs, computer databases, computer program flow diagrams,
source codes, object codes and all tangible property embodying or incorporating
the Registered Copyrights, and all other rights of every kind whatsoever
accruing thereunder or pertaining thereto.

          (b)  Unregistered Copyrights.  All of Grantor's present and future
               -----------------------
copyrights which are not registered in the United States Copyright Office (the
"Unregistered Copyrights"), whether now owned or hereafter acquired, including
without limitation the Unregistered Copyrights listed in Schedule B to this
                                                         ----------
Agreement, and any and all royalties, payments, and other amounts payable to
Grantor in connection with the Unregistered Copyrights, together with all
renewals and extensions of the Unregistered Copyrights, the right to recover for
all past, present, and future infringements of the Unregistered Copyrights, and
all computer programs, computer databases, computer program flow diagrams,
source codes, object codes and all tangible property embodying or incorporating
the Unregistered Copyrights, and all other rights of every kind

                                      -1-
<PAGE>

whatsoever accruing thereunder or pertaining thereto. The Registered Copyrights
and the Unregistered Copyrights collectively are referred to herein as the
"Copyrights."

          (c)  Licenses.  All of Grantor's right, title and interest in and to
               --------
any and all present and future license agreements with respect to the
Copyrights, including without limitation the license agreements listed in
Schedule C to this Agreement (the "Licenses").
----------

          (d)  Accounts Receivable.  All present and future accounts, accounts
               -------------------
receivable and other rights to payment arising from, in connection with or
relating to the Copyrights.

          (e)  Proceeds.  All cash and non-cash proceeds of any and all of the
               --------
foregoing.

     2.   Representations.  Grantor represents and warrants that:
          ---------------

          (a)  Each of the Copyrights is valid and enforceable (except to the
extent that the Unregistered Copyrights must be registered to be enforced);

          (b)  Except for the security interest granted hereby and the non-
exclusive licenses granted to Grantor's licensees with respect to the Copyrights
in the ordinary course of business of Grantor, Grantor is (and upon creation of
all future Copyrights, will be) the sole and exclusive owner of the entire and
unencumbered right, title, and interest in and to each of the Copyrights and
other Collateral, free and clear of any liens, charges, or encumbrances;

          (c)  There is no pending claim that the use of any of the Copyrights
does or may infringe upon or violate the rights of any third person nor does
Grantor have knowledge of any pending or threatened infringement of any of the
Copyrights by any third person.

          (d)  Listed on Schedules A and B are all copyrights owned by Grantor,
in which Grantor has an interest, or which are used in Grantor's business.

          (e)  Listed on Schedule C are all Licenses to which Grantor is a
party.

          (f)  Each employee, agent and/or independent contractor who has
participated in the creation of the property constituting the Collateral has
either executed an assignment of his or her rights of authorship to Grantor or
is an employee of Grantor acting within the scope of his or her employment and
was such an employee at the time of said creation.

          (g)  All of Grantor's present and future software, computer programs
and other works of authorship subject to United States copyright protection, the
sale, licensing or other disposition of which results in royalties receivable,
license fees receivable, accounts receivable or other sums owing to Grantor
(collectively, "Receivables"), have been and shall be registered with the United
States Copyright Office prior to the date Grantor requests or accepts any loan
from Greyrock with respect to such Receivables and prior to the date Grantor
includes any such Receivables in any accounts receivable aging, borrowing base
report or certificate or other similar report provided to Greyrock*, and Grantor
shall provide to Greyrock copies of all such registrations promptly upon the
receipt of the same.

*(except that Grantor shall have 45 days after the date hereof to duly file
applications for registration of all of its present software with the United
States Copyright Office (as provided in the Schedule to the Loan Agreement), and
during such 45-day period, and thereafter provided that said applications  duly
proceed to registration, Grantor may request and accept loans with respect to
Receivables arising from the licensing of such software)

                                      -2-
<PAGE>

     3.   Covenants.  Until all of the Obligations have been satisfied in full
          ---------
and the Loan Agreement has terminated:

          (a)  Grantor shall not grant a security interest in any of the
Copyrights or other Collateral to any other person and shall not enter into any
agreement or take any action that is inconsistent with Grantor's obligations
hereunder or Grantor's other Obligations or would impair Greyrock's rights,
under this Agreement or otherwise, without Greyrock's prior written consent.

          (b)  Grantor shall ensure that each use of the Copyrights described in
Section 1 of this Agreement carries a complete and accurate copyright notice.

          (c)  Grantor shall use its best efforts to preserve and defend
Grantor's rights in the Copyrights unless Grantor, with the concurrence of
Greyrock, reasonably determines that a Copyright is not worth preserving or
defending.

          (d)  Grantor shall undertake all reasonable measures to cause its
employees, agents and independent contractors to assign to Grantor all rights of
authorship to any copyrighted material in which Grantor has or may subsequently
acquire any right or interest.

     4.   License Rights.  Grantor may license or sublicense the Copyrights
          --------------
only in the ordinary course of business and only on a non-exclusive basis, and
only to the extent of Grantor's rights and subject to Greyrock's security
interest and Grantor's obligations under this Agreement.

     5.   Greyrock May Supplement.  Grantor authorizes Greyrock to modify this
          -----------------------
Agreement by amending Schedule A or B to include any future copyrights to be
included in the Copyrights. Grantor shall from time to time update the lists of
Registered Copyrights and Unregistered Copyrights on Schedules A and B and lists
of License Agreements on Schedule C as Grantor obtains or acquires copyrights or
grants or obtains licenses in the future. Notwithstanding the foregoing, no
failure to so modify this Agreement or amend Schedules A or B or C shall in any
way affect, invalidate or detract from Greyrock's continuing security interest
in all Copyrights, whether or not listed on Schedule A or B and all license
agreements whether or not listed on Schedule C.

     6.   Default.  Upon an Event of Default (as defined in the Loan Agreement)
          -------
Greyrock shall have, in addition to all of its other rights and remedies under
the Loan Agreement, all rights and remedies of a secured party under the Uniform
Commercial Code (as enacted in any jurisdiction in which the Copyrights or other
Collateral are located or deemed to be located) or other applicable law. Upon
occurrence of an Event of Default, Grantor shall, upon request of Greyrock, give
written notice to all parties to the Licenses that all payments thereunder shall
be made to Greyrock, and Greyrock may itself give such notice.

     7.   Fees and Expenses.  On demand by Greyrock, without limiting any of the
          -----------------
terms of the Loan Agreement, Grantor shall pay all reasonable fees, costs, and
expenses (including without limitation reasonable attorneys' fees and legal
expenses) incurred by Greyrock in connection with (a) preparing this Agreement
and all other documents relating to this Agreement, (b) consummating this
transaction, (c) filing or recording any documents (including all taxes in
connection therewith) in public offices; and (d) paying or discharging any
taxes, counsel fees, maintenance fees, encumbrances, or other amounts in
connection with protecting, maintaining, or preserving the Copyrights or
defending or prosecuting any actions or proceedings arising out of or related to
the Copyrights.

     8.   Greyrock's Rights.  In the event that Grantor fails to use its best
          -----------------
efforts to preserve and defend Grantor's rights in the Copyrights (except as
permitted by paragraph 3(c) hereof) within a reasonable period of time after
learning of the existence of any actual or threatened infringement thereof, upon
twenty (20) days prior written notice to Grantor, Greyrock shall have the right,
but shall in no way be obligated to, bring suit or take any other action, in its
own name or in Grantor's name, to enforce or preserve Greyrock's or Grantor's
rights in the Copyrights.

                                      -3-
<PAGE>

Grantor shall at the request of Greyrock and at Grantor's expense do any lawful
acts and execute any documents requested by Greyrock to assist with such
enforcement. In the event Grantor has not taken action to enforce or preserve
Greyrock's and Grantor's rights in the Copyrights and Greyrock thereupon takes
such action, Grantor, upon demand, shall promptly reimburse and indemnify
Greyrock for all costs and expenses incurred in the exercise of Greyrock's or
Grantor's rights under this Section 8.

     9.   No Waiver.  No course of dealing between Grantor and Greyrock, nor
          ---------
any failure to exercise nor any delay in exercising, on the part of Greyrock,
any right, power, or privilege under this Agreement or under the Loan Agreement
or any other agreement, shall operate as a waiver.  No single or partial
exercise of any right, power, or privilege under this Agreement or under the
Loan Agreement or any other agreement by Greyrock shall preclude any other or
further exercise of such right, power, or privilege or the exercise of any other
right, power, or privilege by Greyrock.

     10.  Rights Are Cumulative.  All of Greyrock's rights and remedies with
          ---------------------
respect to the Copyrights and other Collateral whether established by this
Agreement, the Loan Agreement, or any other documents or agreements, or by law
shall be cumulative and may be exercised concurrently or in any order.

     11.  Copyright Office.  At the request of Greyrock, Grantor shall execute
          ----------------
any further documents necessary or appropriate to create and perfect Greyrock's
security interest in the Copyrights, including without limitation any documents
for filing with the United States Copyright Office and/or any applicable state
office. Greyrock may record this Agreement, an abstract thereof, or any other
document describing Greyrock's interest in the Copyrights with the United States
Copyright Office, at the expense of Grantor.

     12.  Indemnity.  Grantor shall protect, defend, indemnify, and hold
          ---------
harmless Greyrock and Greyrock's assigns from all liabilities, losses, and costs
(including without limitation reasonable attorneys' fees) incurred or imposed on
Greyrock relating to the matters in this Agreement, including, without
limitation, in connection with Greyrock's defense of any infringement action
brought by a third party against Greyrock.

     13.  Severability.  The provisions of this Agreement are severable. If any
          ------------
provision of this Agreement is held invalid or unenforceable in whole or in part
in any jurisdiction, then such invalidity or unenforceability shall affect only
such provision, or part thereof, in such jurisdiction, and shall not in any
manner affect such provision or part thereof in any other jurisdiction, or any
other provision of this Agreement in any jurisdiction.

     14.  Amendments; Entire Agreement.  This Agreement is subject to
          ----------------------------
modification only by a writing signed by the parties, except as provided in
Section 5 of this Agreement.  To the extent that any provision of this Agreement
conflicts with any provision of the Loan Agreement, the provision giving
Greyrock greater rights or remedies shall govern, it being understood that the
purpose of this Agreement is to add to, and not detract from, the rights granted
to Greyrock under the Loan Agreement.  This Agreement, the Loan Agreement, and
the documents relating thereto comprise the entire agreement of the parties with
respect to the matters addressed in this Agreement.

     15.  Further Assurances.  At Greyrock's request, Grantor shall execute and
          ------------------
deliver to Greyrock any further instruments or documentation, and perform any
acts, that may be reasonably necessary or appropriate to implement this
Agreement, the Loan Agreement or any other agreement, and the documents relating
thereto, including without limitation any instrument or documentation reasonably
necessary or appropriate to create, maintain, perfect, or effectuate Greyrock's
security interests in the Copyrights or other Collateral.

     16.  Release.  At such time as Grantor shall completely satisfy all of the
          -------
Obligations and the Loan Agreement shall be terminated, Greyrock shall execute
and deliver to Grantor all

                                      -4-
<PAGE>

assignments and other instruments as may be reasonably necessary or proper to
terminate Greyrock's security interest in the Copyrights, subject to any
disposition of the Copyrights which may have been made by Greyrock pursuant to
this Agreement. For the purpose of this Agreement, the Obligations shall be
deemed to continue if Grantor enters into any bankruptcy or similar proceeding
at a time when any amount paid to Greyrock could be ordered to be repaid as a
preference or pursuant to a similar theory, and shall continue until it is
finally determined that no such repayment can be ordered.

     17.  True and Lawful Attorney.  Grantor hereby appoints Greyrock as
          ------------------------
Grantor's true and lawful attorney, with full power of substitution, to do any
or all of the following, in the name, place and stead of Grantor: (a) execute
an abstract of this Agreement or any other document describing Greyrock's
interest in the Copyrights, for filing with the United States Copyright Office;
(b) execute any modification of this Agreement pursuant to Section 5 of this
Agreement; and (c) following an Event of Default (as defined in the Loan
Agreement) execute any assignments, notices or transfer documents for purposes
of transferring title or right to receive any of the Copyrights or other
Collateral to any person, including without limitation Greyrock.

     18.  Successors.  The benefits and burdens of this Agreement shall inure to
          ----------
the benefit of and be binding upon the respective successors and permitted
assigns of the parties; provided that Grantor may not transfer any of the
Collateral or any rights hereunder, without the prior written consent of
Greyrock, except as specifically permitted hereby.

     19.  Governing Law.  The validity and interpretation of this Agreement and
          -------------
the rights and obligations of the parties shall be governed by the laws of the
State of California, excluding its conflict of law rules to the extent such
rules would apply the law of another jurisdiction, and the United States.

     20.  Waiver of Right to Jury Trial.  Greyrock and Grantor each hereby waive
          -----------------------------
the right to trial by jury in any action or proceeding based upon, arising out
of, or in any way relating to: (i) this Agreement; or (ii) any other present or
future instrument or agreement between Greyrock and Grantor; or (iii) any
conduct, acts or omissions of Greyrock or Grantor or any of their directors,
officers, employees, agents, attorneys or any other persons affiliated with
Greyrock or Grantor; in each of the foregoing cases, whether sounding in
contract or tort or otherwise.

     WITNESS the execution hereof as of the date first written above.

                                          Grantor:

                                          Inventa Corporation

                                          By:    /s/ David A. Lavanty
                                              --------------------------------
                                          Name (please print):

                                                 David A. Lavanty
                                          ------------------------------------
                                          Title: President & CEO
                                                ------------------------------
                                          Chairman of the Board, President, or
                                          Vice President

                                      -5-
<PAGE>

Accepted.

Greyrock:

GREYROCK CAPITAL,
a Division of Banc of America Commercial Finance Corporation

By: /s/ Lisa Nagano
   ------------------------
Name (please print):

    LISA NAGANO
---------------------------
Title: SR. VICE PRESIDENT

                                      -6-
<PAGE>

                                  Schedule A
                                      to
                    Security Agreement in Copyrighted Works

                              Inventa Corporation

                             Registered Copyrights

U.S. Copyrights
---------------
                                   REGISTRATION                DATE
      TITLE OF WORK/YEAR OF           NUMBER                OF ISSUANCE
      ----------------------          ------                -----------
            CREATION
            --------

                                      -7-
<PAGE>

                                  Schedule B
                                      to
                    Security Agreement in Copyrighted Works

                              Inventa Corporation

                            Unregistered Copyrights
                  (Where No Copyright Application Is Pending)

Copyright Description
---------------------

See attached list of software applications.

                                      -8-
<PAGE>

                                  Schedule C
                                      to
                    Security Agreement in Copyrighted Works

                              Inventa Corporation

                               License Agreements

                                      -9-

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