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                                                                   EXHIBIT 10.24

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                AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
                              TALARIAN CORPORATION
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     This AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT dated August 6, 1998,
between SILICON VALLEY BANK ("Bank"), whose address is 3003 Tasman Drive, Santa
Clara, California 95054 with a loan production office located at 1731
Embarcadero, Ste. 220, Palo Alto, California 94303 and TALARIAN CORPORATION
("Borrower"), whose address is 333 Distel Circle, Los Altos, California 94022.

                                    RECITALS

     A.   Bank and Borrower are parties to that certain Promissory Note in the
original principal amount of $1,000,000, Business Loan Agreement, and Commercial
Security Agreement, each dated May 24, 1996, as amended (collectively, the
"Original Agreement").

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

     C.   Borrower and Bank are parties to that certain Promissory Note in the
original principal amount of $200,000, dated May 24, 1996; that certain
Promissory Note in the original principal amount of $350,000, dated September
25, 1996; and that certain Promissory Note in the original principal amount of
$250,000, dated July 11, 1997 (collectively, the "Current Term Notes"). Borrower
shall continue to repay and be subject to the terms and conditions under Current
Term Notes, as amended. Furthermore, the Current Term Notes shall be subject to
and governed by this Agreement.

                                    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

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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.

          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 $500,000.
Each Letter of Credit will have an expiry date of no later than 180 days after
the Revolving Maturity Date, but Borrower's reimbursement obligation will be
secured by cash on terms acceptable to Bank at any time after the Revolving
Maturity Date if the term of this Agreement is not extended by Bank.

          2.1.3 EQUIPMENT ADVANCES.

               (a)  Through February 6, 1999 (the "Equipment Availability End
Date"), Bank will 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, lease hold improvements and other soft costs
may constitute up to 35% of the aggregate Equipment Advances.

               (b)  Interest accrues 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 24 equal monthly installments of principal,
plus accrued interest, beginning on the last day of each month following the
Equipment Availability End Date and ending on February 28, 2001 (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

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

          2.3  INTEREST RATE, PAYMENTS.

               (a)  Interest Rate. (i) Advances accrue interest on the
outstanding principal balance at a per annum rate of 1 percentage point above
the Prime Rate; and (ii) Equipment Advances accrue interest on the outstanding
principal balance at a per annum rate of 1.5 percentage points 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 5th of each month. Interest due on the Equipment Advances is
payable on the last day of each month. Bank may debit any of Borrower's deposit
accounts including Account Number 02715651-75 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.

          2.4  FEES.

          Borrower will pay:

          (a)  Facility Fee. A fully earned, non-refundable Facility Fee of
$2,500 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.

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     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 an 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.

     5.2  COLLATERAL.

     Borrower has good title to the Collateral, free of Liens except Permitted
Liens. The Accounts are bona fide, existing obligations, and the service or
property has been performed or delivered to the account debtor or its agent for
immediate shipment to and unconditional acceptance by the account debtor.
Borrower has no notice of any actual or imminent Insolvency Proceeding of any
account debtor whose accounts are an Eligible Account in any Borrowing Base
Certificate. All Inventory is in all material respects of good and marketable
quality, free from material defects. Borrower is the sole owner of the
Intellectual Property, except for

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non-exclusive licenses granted to its customers in the ordinary course of
business. Each Patent is valid and enforceable and no part of the Intellectual
Property has been judged invalid or unenforceable, in whole or in part, and no
claim has been made that any part of the Intellectual Property violates the
rights of any third party.

     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 Chance.

     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.

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     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.

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;
(iv) budgets, sales projections, operating plans or other financial information
Bank requests; and (v) prompt notice of any material change in the composition
of the Intellectual Property, including any subsequent ownership right of
Borrower in or to any Copyright, Patent or Trademark not shown in any
intellectual property security agreement between Borrower and Bank or knowledge
of an event that materially adversely affects the value of the Intellectual
Property.

          (b)  Within 30 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.

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

     6.3  INVENTORY; RETURNS.

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

     6.4  TAXES.

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

     6.5  INSURANCE.

     Borrower will keep 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, unless otherwise
stated:

          (i)  Quick Ratio [Adjusted]. A ratio of Quick Assets to Current
Liabilities minus Deferred Maintenance Revenue of at least 1.40 to 1.00.

          (ii) Tangible Net Worth (tested quarterly). A Tangible Net Worth of at
least $600, 000.

          (iii) Liquidity Coverage. A ratio of unrestricted cash (and
equivalents) plus net availability under the Committed Revolving Line divided by
term loan outstandings of not less than 2.00 to 1.00.

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     6.8  REGISTRATION OF INTELLECTUAL PROPERTY RIGHTS.

     Borrower has registered with the United States Patent and Trademark Office
or the United States Copyright Office Intellectual Property rights on the
Exhibits to the Intellectual Property Security Agreement dated July 11, 1997
within 30 days of the date of that agreement, and additional Intellectual
Property rights developed or acquired including revisions or additions with any
product before the sale or licensing of the product to any third party.

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

     6.9  FURTHER ASSURANCES.

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

     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.

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     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 an Borrower's business or operations or cause a Material
Adverse Change, or permit any of its Subsidiaries to do so.

8.   EVENTS OF DEFAULT

     Any one of the following is an Event of Default:

     8.1  PAYMENT DEFAULT.

     If Borrower fails to pay any of the Obligations.

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     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.

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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).

     8.8  MISREPRESENTATIONS.

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

9.   BANK'S RIGHTS AND REMEDIES

     9.1  RIGHTS AND REMEDIES.

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

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

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

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

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

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

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

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     (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 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

                                       13
<PAGE>   14

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.

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

                                       14
<PAGE>   15

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 parses on separate counterparts, each of which, when executed and
delivered, are an original, and all taken together, constitute one Agreement

     12.7 SURVIVAL.

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

     12.8 CONFIDENTIALITY.

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

                                       15
<PAGE>   16

     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 leans
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.

     "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.

     "Borrowing Base" is 75% of Eligible Accounts as determined by Bank from
Borrower's most recent Borrowing Base Certificate.

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

     "Closing Date" is the date of this Agreement.

     "Code" is the California Uniform Commercial Code.

                                       16
<PAGE>   17

     "Collateral" is the property described on Exhibit A.

     "Committed Equipment Line" is a Credit Extension of up to $500,000.

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

     "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

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

     "Credit Extension" is each Advance, 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.

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

     "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

                                       17
<PAGE>   18

Bank approves in writing, except for those certain Accounts from Lockheed
Martin, for which the percentage may be 35%;

     (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

                                       18
<PAGE>   19

the benefit of creditors, compositions, extensions generally with its creditors,
or proceedings seeking reorganization, arrangement, or other relief.

     "Intellectual Property" is:

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

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

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

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

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

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

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

     "Letter of Credit" is defined in Section 2.

     "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.

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

     "Material Adverse Change" is defined in Section 8.3.

                                       19
<PAGE>   20

     "Obligations" are debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, including 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.

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

     "Permitted Indebtedness" is:

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

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

     (c)  Subordinated Debt;

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

     (e)  Indebtedness secured by Permitted Liens.

     "Permitted Investments" are:

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

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

                                       20
<PAGE>   21

     (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 5, 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.

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

                                       21
<PAGE>   22

BORROWER:

TALARIAN CORPORATION

By:
   ---------------------------
Title:
      ------------------------

BANK:

SILICON VALLEY BANK

By:
   ---------------------------
Title:
      ------------------------

                                       22
<PAGE>   23

                           LOAN MODIFICATION AGREEMENT

     This Loan Modification Agreement is entered into as of February 22, 2000,
by and between Talarian 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 6,
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 Dollars ($1,000,000). The Loan
Agreement was modified, pursuant to, among other things, a Loan Modification
Agreement dated February 22, 1999, pursuant to which, among other things, the
Committed Revolving Line was increased to One Million Five Hundred Thousand
Dollars ($1,500,000). 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 by the
Intellectual Property Collateral as described in that certain Intellectual
Property Security Agreement, dated July 11, 1997, by and between Borrower and
Bank.

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 2.1.5 entitled "Cash Management Services" is hereby
               amended to read as follows:

               The aggregate principal amount of the Committed Revolving Line
               shall be reduced by an amount equal to the sum of (a) $50,000
               (the "Merchant Service Reserve") and (b) $200,000 (the "Credit
               Card Reserve"), provided that, in no event, shall the sum of (a)
               and (b) exceed $250,000, in the aggregate outstanding. Bank may,
               in its sole discretion, charge as advances, any amounts that may
               become due or owing to Bank in connection with merchant credit
               card processing services and/or business credit card services
               furnished to Borrower by or through Bank, collectively, the
               "Credit Card Services." Borrower shall execute all standard form
               applications and agreements, including without limitation, the
               Indemnification and Pledge Agreement, of Bank in connection with
               the Credit Card Services and, without limiting any of the terms
               of such applications and agreements, Borrower will pay all
               standard fees and charges of Bank in connection with the Credit
               Card Services and, without limiting any of the terms of such
               applications and agreements, Borrower will pay all standard fees
               and charges of Bank in connection with the Credit Card Services.

          2.   Effective as of the date of this Loan Modification Agreement,
               item "(a)" under Section 2.3 entitled "Interest Rate, Payments"
               is hereby amended in part to state that Advances accrue interest
               on the outstanding principal balance at a per annum rate of one
               quarter of one (0.25) percentage point above the Prime Rate.

          3.   Section 6.2 entitled "Financial Statements, Reports,
               Certificates" is hereby amended to read as follows:

<PAGE>   24

               (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
               acceptable to Bank and certified by a Responsible Officer; (ii)
               as soon as available, but no later than 120 days after the end of
               Borrower's fiscal year (or 152 days for fiscal year ended
               December 31, 1999), 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) within 5 days of filing, copies of all statements, reports
               and notices made available to Borrower's security holders or to
               any holders of Subordinated Debt and all reports on Form 10-K,
               10-Q and 8-K filed with the Securities and Exchange Commission;
               (iv) 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; (v)
               prompt notice of any material change in the composition of the
               Intellectual Property, including any subsequent ownership right
               of Borrower in or to any Copyright, Patent or Trademark not shown
               in any intellectual property security agreement between Borrower
               and Bank or knowledge of an event that materially adversely
               affects the value of the Intellectual Property; and (vi) budgets,
               sales projections, operating plans or other financial information
               Bank requests.

                    (b)  Within 30 days after the last day of each month,
               Borrower will deliver to Bank a Borrowing Base Certificate signed
               by a Responsible Officer, 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.

                    (d)  Bank has the right to audit Borrower's Accounts at
               Borrower's expense, but the audits will be conducted no more
               often than once every 12 months unless an Event of Default has
               occurred and is continuing.

               Provided, however, at such time as Borrower completes a
               successful public offering and subsequent listing under a
               publicly traded equity market governed by the Securities and
               Exchange Commission, Section 6.2 shall be as follows:

               (a)  Borrower will deliver to Bank: (i) within 5 days of filing,
               copies of all statements, reports and notices made available to
               Borrower's security holders or to any holders of Subordinated
               Debt and all reports on Form 10-K, 10-Q and 8-K filed with the
               Securities and Exchange Commission; (ii) 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; (iii) prompt notice of any
               material change in the composition of the Intellectual Property,
               including any subsequent ownership right of Borrower in or to any
               Copyright, Patent or Trademark not shown in any intellectual
               property security agreement between Borrower and Bank or
               knowledge of an event that materially adversely affects the value
               of the Intellectual Property; and (iv) budgets, sales
               projections, operating plans or other financial information Bank
               requests.

                    (b)  At such times as outstanding Advances exist and prior
               to any initial Advance, within 30 days after the last day of each
               month, Borrower will deliver to Bank a Borrowing Base Certificate
               signed by a Responsible Officer, with aged listings of accounts
               receivable and accounts payable.

                                       2

<PAGE>   25

                    (c)  Within 45 days after the last day of each quarter,
               Borrower will deliver to Bank with the quarter financial
               statements a Compliance Certificate signed by a Responsible
               Officer.

                    (d)  Bank has the right to audit Borrower's Accounts at
               Borrower's expense, but the audits will be conducted no more
               often than once every 12 months unless an Event of Default has
               occurred and is continuing.

          4.   Section 6.7 entitled "Financial Covenants" is hereby amended to
               read as follows:

               Borrower will maintain as of the last day of each quarter, unless
               otherwise stated:

               (i) Adjusted Quick Ratio. A ratio of Quick Assets to Current
               Liabilities minus Deferred Maintenance Revenue of at least 2.00
               to 1.00.

               (ii) Tangible Net Worth. A Tangible Net Worth equal to or greater
               than $5,000,000.

               (iii) Liquidity Coverage. A ratio of unrestricted cash (and
               equivalents) plus net availability under the Committed Revolving
               Line divided by term loan outstandings of not less than 2.00 to
               1.00.

          5.   The reference to "25%" in Section 7.3 entitled "Mergers or
               Acquisitions" is hereby amended to "49%".

          6.   Notwithstanding the terms and conditions contained in Section 7.6
               entitled "Distributions, Investments", Borrower may repurchase
               its stock from former employees of Borrower in accordance with
               the terms of repurchase or similar agreements between Borrower
               and such employees and pay any dividends or make any distribution
               or payment, provided that immediately prior to and following such
               repurchases there exists no Event of Default under the Loan
               Documents.

          7.   Sub-Sections (d) and (e) of Eligible Accounts under Section 13.1
               entitled "Definitions" are hereby amended to read as follows:

               (a) Accounts that the account debtor has not paid within 90 days
               of invoice date, provided, however, Bank may, at its sole
               discretion, allow Accounts that the account debtor has not paid
               within 120 days of invoice date, at Borrower's request and on a
               case-by-case basis;

               (d) Accounts for an account debtor, including Affiliates, whose
               total obligations to Borrower exceed 25% of all Acocunts, for the
               amounts that exceed that percentage, unless Bank approves in
               writing;

               (e) Accounts for which the account debtor does not have its
               principal place of business in the United States, except for
               those certain Eligible Foreign Accounts to a maximum of 35% of
               the Borrowing Base;

          8.   The following terms are hereby amended and/or incorporated into
               Section 13.1 entitled "Definitions," to read as follows:

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

               "Committed Revolving Line" is an Advance of up to Two Million
               Dollars ($2,000,000).

                                       3
<PAGE>   26

               "Revolving Maturity Date" is February 22, 2001.

     B.   Waiver of Financial Covenant Defaults.

               Bank hereby waives Borrower's existing default under the Loan
               Agreement by virtue of Borrower's failure to comply with the
               Quick Ratio covenant as of month ended August 31, 1999 and the
               Tangible Net Worth covenant as of quarters ended September 30,
               1999 and December 31, 1999. Bank's waiver of Borrower's
               compliance of these covenants shall apply only to the foregoing
               periods. Accordingly, for the month ended September 30, 1999,
               Borrower shall be in compliance with the Quick Ratio covenant and
               for the quarter ending March 31, 2000, Borrower shall be in
               compliance with the Tangible Net Worth covenant, as amended
               herein.

               Bank's agreement to waive the above-described default (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.   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 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.

7.   CONDITIONS. The effectiveness of this Loan Modification Agreement is
conditioned upon Bank's receipt of the executed Amended to Warrant Agreement, of
even date.

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

<TABLE>
<S>                                      <C>
BORROWER:                                BANK:

TALARIAN CORPORATION                     SILICON VALLEY BANK

By:                                      By:
   ----------------------------------       ----------------------------------
Name:                                    Name:
     --------------------------------         --------------------------------
Title:                                   Title:
      -------------------------------          -------------------------------
</TABLE>

                                       4NUMBER                      FIRST                      SHARES
                                    COMMUNITY
JJ                                   BANCORP

     INCORPORATED UNDER THE LAWS                             SEE REVERSE FOR
      OF THE STATE OF CALIFORNIA                            CERTAIN DEFINITIONS

This certifies that                                            CUSIP 319838 10 1

is the record holder of

 FULLY PAID AND NONASSESSABLE SHARES OF THE COMMON STOCK, WITH NO PAR VALUE, OF

     -------------------                                 ------------------
------------------------     FIRST COMMUNITY BANCORP     -----------------------
     -------------------                                 ------------------

hereinafter called "the Corporation", transferable on the books of the
      Corporation in person or by duly authorized attorney upon surrender of
      this Certificate properly endorsed or assigned. By the acceptance of this
      Certificate, the holder hereof assents to and agrees to be bound by all of
      the provisions of the Articles of Incorporation and the By-Laws and all
      amendments thereto. This Certificate is not valid unless countersigned and
      registered by the Transfer Agent and Registrar.
      WITNESS the facsimile seal of the Corporation and the facsimile signatures
      of its duly authorized officers.

Dated:

EXECUTIVE VICE PRESIDENT AND               PRESIDENT AND CHIEF EXECUTIVE OFFICER
  CHIEF FINANCIAL OFFICER

<PAGE>

     A statement of the rights, preferences, privileges and restrictions granted
to or imposed upon the respective classes or series of shares and upon the
holders thereof as established by the Articles of Incorporation of the
Corporation and by any certificate of determination, and the number of shares
constituting each class or series and the designations thereof, may be obtained
by any shareholder of the Corporation upon written request and without charge
from the Secretary of the Corporation at its corporate headquarters.

     KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, OR DESTROYED
THE CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE
OF A REPLACEMENT CERTIFICATE.

     The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>                                                                    <C>

   TEN COM  -  as tenants in common                                        UNIF GIFT MIN ACT -- ___________Custodian__________
   TEN ENT  -  as tenants by the entireties                                                    (Cust.)             (Minor)
   JT TEN   -  as joint tenants with right of survivorship                               under Uniform Gifts to Minors
               and not as tenants in common                                              Act______________________
                                                                                                        (State)
                                                                       UNIF TRF MIN ACT -  _________ Custodian (until age ________)
                                                                                             (Cust)
                                                                                            _______________ under Uniform Transfers
                                                                                               (Minor)
                                                                                             to Minors Act ________________________
                                                                                                                 (State)
</TABLE>

     Additional abbreviations may also be used though not in the above list.

FOR VALUE RECEIVED, _____________________ hereby sell, assign and transfer unto

   PLEASE INSERT SOCIAL SECURITY OR OTHER
       INDENTIFYING NUMBER OF ASSIGNEE
 ------------------------------------------
/                                         /
------------------------------------------

--------------------------------------------------------------------------------
  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------Shares
of the  capital  stock  represented  by the  within  Certificate,  and do hereby
irrevocably constitute and appoint

------------------------------------------------------------------------Attorney
to transfer the said stock in the books of the within named Corporation with
full power of substitution in the premises.

Dated ________________________

                                       X________________________________________
                                       X________________________________________
                                       NOTICE: THE SIGNATURE(S) TO THIS
                                               ASSIGNMENT MUST CORRESPOND WITH
                                               THE NAME(S) AS WRITTEN UPON THE
                                               FACE OF THE CERTIFICATE IN EVERY
                                               PARTICULAR, WITHOUT ALTERATION OR
                                               ENLARGEMENT OR ANY CHANGE
                                               WHATEVER.

Signature(s) Guaranteed

By____________________________
THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS,
STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN
AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE
17Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]