Document:

<PAGE>

                                                                Exhibit 10(f)(2)

[Logo of First Union]
FIRST UNION NATIONAL BANK
NC 1220
Private Client Group
Three First Union Center
401 South Tryon Street
Charlotte NC 28288-1220
Tel 704 374-3102
Fax 704 374-3119
800 690-9749

June 16, 2000

Inter-Act Electronic Marketing, Inc.
5032 Parkway Plaza Boulevard
Charlotte, NC  28217

Ladies and Gentlemen:

     Reference is made to your $5,000,000 Promissory Note of even date herewith
(the "Note") payable to us.  You have informed us that, under the terms of your
Collateral Mortgage Security Agreement dated May 19, 2000 (the "Existing
Security Agreement") in favor of First Greenwich Capital, LLC ("First
Greenwich"), you are prohibited from granting any further liens or security
interests in any of the collateral thereunder, which collateral includes your
accounts receivable, inventory and ILN Terminals.

     In consideration of our extension of credit to you under the Note and by
your acceptance hereof, you hereby agree and covenant that, as promptly as
practicable following the earlier to occur of (i) any termination of the
Existing Security Agreement and related release of the collateral thereunder or
(ii) the receipt of written consent of First Greenwich to your grant of a
security interest to us on terms satisfactory to us, you will enter into a
Security Agreement in our favor in substantially the form of Exhibit A hereto,
pursuant to which you will grant us a security interest in your accounts
receivable, inventory and equipment consisting of ILN Terminals.  You further
agree to execute such financing statements and other documents as we may
reasonable require in connection therewith.

     If the foregoing corresponds with your understanding of our agreement,
kindly sign this letter and the accompanying copies thereof in the appropriate
space below and return the same to the undersigned.  This letter shall become a
binding agreement between you and us when you and we shall each have one or more
copies hereof executed.

                                    FIRST UNION NATIONAL BANK
<PAGE>

                                    By: /s/ Eric Loselle
                                    Title: Vice President

Agreed and Accepted:

INTER-ACT ELECTRONIC MARKETING, INC.

By: /s/ Thomas J. McGoldrick

 Title: Executive Vice President
<PAGE>

[Logo of First Union]

                                   EXHIBIT A

                               SECURITY AGREEMENT

                                                                          (Date)
Inter Act Electronic Marketing, Inc.
5032 Parkway Plaza Blvd.
Charlotte, North Carolina  28217
(Individually and collectively "Debtor")

First Union National Bank
301 South Tryon Street
Charlotte, North Carolina  28202
(Hereinafter referred to as "Bank")

For value received and to secure payment and performance of the Promissory Note
executed by the Debtor (also referred to herein as "Borrower") dated June 16,
2000 in the original principal amount of $5,000,000.00, payable to Bank, and any
extensions, renewals, modifications or novations thereof (the "Note"), this
Security Agreement and the other Loan Documents, and any other obligations of
Debtor to Bank however created, arising or evidenced, whether direct or
indirect, absolute or contingent, now existing or hereafter arising or acquired,
and whether or not evidenced by a Loan Document, including swap agreements (as
defined in 11 U.S.C. (S)101), future advances, and all costs and expenses
incurred by Bank to obtain, preserve, perfect and enforce the security interest
granted herein and to maintain, preserve and collect the property subject to the
security interest (collectively, "Obligations"), Debtor hereby grants to Bank a
continuing security interest in and lien upon the following described property,
whether now owned or hereafter acquired, and any additions, replacements,
accessions, or substitutions thereof and all cash and non-cash proceeds and
products thereof (collectively, "Collateral"):

ALL OF DEBTOR'S PRESENT AND FUTURE ACCOUNTS, ACCOUNTS RECEIVABLE, EQUIPMENT
CONSISTING OF ILN TERMINALS, AND INVENTORY (THE "PROPERTY); ALL OF DEBTOR'S
RIGHT, TITLE AND INTEREST, AND ALL OF DEBTOR'S REMEDIES, SECURITY AND LIENS, IN,
TO AND IN RESPECT OF THE PROPERTY, INCLUDING WITHOUT LIMITATION, RIGHTS OF
STOPPAGE IN TRANSIT, REPLEVIN, REPOSSESSION AND RECLAMATION AND OTHER RIGHTS AND
REMEDIES OF AN UNPAID VENDOR, LIENOR AND SECURED PARTY, GUARANTIES OR OTHER
CONTRACTS OF SURETYSHIP WITH RESPECT TO THE PROPERTY, DEPOSITS OR OTHER SECURITY
FOR THE OBLIGATION OF ANY ACCOUNT DEBTOR, AND CREDIT AND OTHER INSURANCE ON ANY
PROPERTY; ALL OF DEBTOR'S RIGHT, TITLE AND INTEREST IN, TO AND IN RESPECT TO, OR
OTHERWISE REPRESENTING OR EVIDENCING ANY PROPERTY, AND ALL RETURNED, RECLAIMED
OR REPOSSESSED GOODS; ALL BOOKS, RECORDS, LEDGER CARDS AND OTHER PROPERTY AND
GENERAL INTANGIBLES AT ANY TIME EVIDENCING OR RELATING TO THE PROPERTY, TOGETHER
WITH ALL ACCESSIONS, ADDITIONS, REPLACEMENTS AND SUBSTITUTIONS THERETO AND
THEREFOR AND ALL PRODUCTS AND PROCEEDS THEREOF AND THEREFROM (INCLUDING PROCEEDS
OF ALL INSURANCE ARISING THEREFROM) (COLLECTIVELY, THE "COLLATERAL").

Debtor hereby represents and agrees that:

OWNERSHIP.  Debtor owns the Collateral or Debtor will purchase and acquire
rights in the Collateral within ten days of the date advances are made under the
Loan Documents.  If Collateral is being acquired with the proceeds of an advance
under the Loan Documents, Debtor authorizes Bank to disburse proceeds directly
to the seller of the Collateral.  The Collateral is free and clear of all liens,
security interests, and claims except the prior lien of First Greenwich Capital,
LLC and those previously reported in writing to Bank.

TITLE/TAXES.  Debtor has good and marketable title to Collateral and will
warrant and defend same against all claims.  Debtor will not transfer, sell, or
lease Collateral (except for sales of inventory and
<PAGE>

sales, leases or other dispositions of ILN Terminals). Debtor agrees to pay
promptly all taxes and assessments upon or for the use of Collateral and on this
Security Agreement unless contested by Debtor in good faith. At its option, Bank
may discharge taxes, liens, security interests or other encumbrances at any time
levied or placed on Collateral. Debtor agrees to reimburse Bank, on demand, for
any such payment made by Bank. Any amounts so paid shall be added to the
Obligations.

WAIVERS.  Debtor waives presentment, demand, protest, notice of dishonor, notice
of default, demand for payment, notice of intention to accelerate, and notice of
acceleration of maturity.  Debtor further agrees not to assert against Bank as a
defense (legal or equitable), as a set-off, as a counterclaim, or otherwise, any
claims Debtor may have against any seller or lessor that provided personal
property or services relating to any part of the Collateral.  Debtor waives all
exemptions and homestead rights with regard to the Collateral.  Debtor waives
any and all rights to notice or to hearing prior to Bank's taking immediate
possession or control of any Collateral, and to any bond or security which might
be required by applicable law prior to the exercise of any of Bank's remedies
against any Collateral.  All rights of Bank and security interests hereunder,
and all obligations of Debtor hereunder, shall be absolute and unconditional,
not discharged or impaired irrespective of (and regardless of whether Debtor
receives any notice of):  (i) any lack of validity or enforceability of any Loan
Document; (ii) any change in the time, manner or place of payment or
performance, or in any term, of all or any of the Obligations or the Loan
Documents or any other amendment or waiver of or any consent to any departure
from any Loan Document; (iii) any exchange, release or non-perfection of any
collateral, or any release of or modifications of the obligations of any
guarantor or other obligor; (iv) any amendment or waiver of or consent to
departure from any Loan Document or other agreement.  To the extent permitted by
law, Debtor hereby waives any rights under any valuation, stay, appraisement,
extension or redemption laws now existing or which may hereafter exist and
which, but for this provision, might be applicable to any sale or disposition of
the Collateral by Bank; and any other circumstance which might otherwise
constitute a defense available to, or a discharge of any party with respect to
the Obligations.

NOTIFICATIONS.  Debtor will notify Bank in writing at least 30 days prior to any
change in: (i) Debtor's chief place of business and/or residence; (ii) Debtor's
name or identity; or (iii) Debtor's corporate/organizational structure. In
addition, Debtor shall promptly notify Bank of any material claims or alleged
claims of any other person or entity to the Collateral or the institution of any
material litigation, arbitration, governmental investigation or administrative
proceedings against or affecting the Collateral.  Debtor will keep Collateral at
the location(s) previously provided to Bank until such time as Bank provides
written advance consent to a change of location.  Debtor will bear the cost of
preparing and filing any documents necessary to protect Bank's liens.

FINANCING STATEMENTS, POWER OF ATTORNEY.  No financing statement (other than any
filed by Bank or with respect to liens disclosed above) covering any Collateral
is on file in any public filing office.  On request of Bank, Debtor will execute
one or more financing statements in form satisfactory to Bank and will pay all
costs and expenses of filing the same or of filing this Security Agreement in
all public filing offices, where filing is deemed by Bank to be desirable.  Bank
is authorized to file financing statements relating to Collateral without
Debtor's signature where authorized by law.  Debtor hereby constitutes and
appoints Bank the true and lawful attorney of Debtor with full power of
substitution to take any and all appropriate action and to execute any and all
documents or instruments that may be necessary or desirable to accomplish the
purpose and carry out the terms of this Security Agreement.  The foregoing power
of attorney is coupled with an interest and shall be irrevocable until all of
the Obligations have been paid in full.  Neither Bank nor anyone acting on its
behalf shall be liable for acts, omissions, errors in judgment, or mistakes in
fact in such capacity as attorney-in-fact.  Debtor ratifies all acts of Bank as
attorney-in-fact.  Debtor agrees to take such other actions as might be
requested for the perfection, continuation and assignment, in whole or in part,
of the security interests granted herein. If certificates, passbooks, or other
documentation or evidence is/are issued or outstanding as to any of the
Collateral, Debtor will cause the security interests of Bank to be properly
protected, including perfection by notation thereon or delivery thereof to Bank.

ACCOUNTS RECEIVABLE.  Debtor warrants that Collateral consisting of accounts
receivable (i) genuine and enforceable in accordance with its terms except as
limited by law; (ii) not subject to any defense,

                                    Page 2
<PAGE>

set-off, claim or counterclaim of a material nature against Debtor except as to
which Debtor has notified Bank in writing; and (iii) not subject to any other
circumstances that would impair the validity, enforceability, value, or amount
of such Collateral except as to which Debtor has notified Bank in writing.

ACCOUNT INFORMATION.  From time to time, at Bank's request, Debtor shall provide
Bank with schedules describing all accounts receivable, including customers'
addresses, credited or acquired by Debtor and at Bank's request shall execute
and deliver written assignments and documents evidencing such accounts
receivable to Bank.  Together with each schedule, Debtor shall, if requested by
Bank, furnish Bank with copies of Debtor's sales journals, invoices, customer
purchase orders or the equivalent, and original shipping or delivery receipts
for all goods sold, and Debtor warrants the genuineness thereof.

ACCOUNT DEBTORS.  If a Default should occur, Bank shall have the right to notify
the account and contract debtors obligated on any or all of the Collateral to
make payment thereof directly to Bank and Bank may take control of all proceeds
of any such Collateral, which rights Bank may exercise at any time.  The cost of
such collection and enforcement, including attorneys' fees and expenses, shall
be borne solely by Debtor whether the same is incurred by Bank or Debtor.  If a
Default should occur or upon demand of Bank, Debtor will, upon receipt of all
checks, drafts, cash and other remittances in payment on Collateral, deposit the
same in a special bank account maintained with Bank, over which Bank also has
the power of withdrawal.

If a Default should occur, no discount, credit, or allowance shall be granted by
Debtor to any account  debtor and no return of merchandise shall be accepted by
Debtor without Bank's consent.  Bank may, after Default, settle or adjust
disputes and claims directly with account contract debtors for amounts and upon
terms that Bank considers advisable, and in such cases Bank will credit the
Obligations with the net amounts received by Bank, after deducting all of the
expenses incurred by Bank.  Debtor agrees to indemnify and defend Bank and hold
it harmless with respect to any claim or proceeding arising out of any matter
related to collection of Collateral.

GOVERNMENT CONTRACTS.  If any Collateral covered hereby arises from obligations
due to Debtor from any governmental unit or organization, Debtor shall
immediately notify Bank in writing and execute all documents and take all
actions demanded by Bank to ensure recognition by such governmental unit or
organization of the rights of Bank in the Collateral.

COLLATERAL DUTIES.  Bank shall have no custodial or ministerial duties to
perform with respect to Collateral pledged except as set forth herein; and by
way of explanation and not by way of limitation, Bank shall incur no liability
for any of the following: (i) loss or depreciation of Collateral (unless caused
by its willful misconduct or gross negligence), (ii) failure to present any
paper for payment or protest, to protest or give notice of nonpayment, or any
other notice with respect to any paper or Collateral.

TRANSFER OF COLLATERAL.  Bank may assign its rights in Collateral or any part
thereof to any assignee who shall thereupon become vested with all the powers
and rights herein given to Bank with respect to the property so transferred and
delivered, and Bank shall thereafter be forever relieved and fully discharged
from any liability with respect to such property so transferred, but with
respect to any property not so transferred, Bank shall retain all rights and
powers hereby given.

INSPECTION, BOOKS AND RECORDS.  Debtor will at all times keep accurate and
complete records covering each item of Collateral, including the proceeds
therefrom.  Bank, or any of its agents, shall have the right, at intervals to be
determined by Bank and without hindrance or delay, to inspect, audit, and
examine the Collateral and to make extracts from the books, records, journals,
orders, receipts, correspondence and other data relating to Collateral, Debtor's
business or any other transaction between the parties hereto.  Debtor will at
its expense furnish Bank copies thereof upon request.

CROSS COLLATERALIZATION LIMITATION.  As to any other existing or future consumer
purpose loan made by Bank to Debtor, within the meaning of the Federal Consumer
Credit Protection Act, Bank expressly waives any security interest granted
herein in Collateral that Debtor uses as a principal dwelling and household
goods.

                                    Page 3
<PAGE>

ATTORNEYS' FEES AND OTHER COSTS OF COLLECTION.  Debtor shall pay all of Bank's
reasonable expenses incurred in enforcing this Security Agreement and in
preserving and liquidating Collateral, including but not limited to, reasonable
arbitration, paralegals', attorneys' and experts' fees and expenses, whether
incurred with or without the commencement of a suit, trial, arbitration, or
administrative proceeding, or in any appellate or bankruptcy proceeding.

DEFAULT.  If any of the following occurs, a default ("Default") under this
Security Agreement shall exist:  (i) the failure of timely payment or
performance of any of Obligations or a default under any Loan Document; (ii) any
breach of any representation or agreement contained or referred to in this
Security Agreement or other Loan Document; (iii) any material loss, theft,
substantial damage, or destruction of Collateral not fully covered by insurance,
or as to which insurance proceeds are not remitted to Bank within 30 days of the
loss; (iv) any sale, lease, or encumbrance of any Collateral not specifically
permitted herein without prior written consent of Bank; (v) the making of any
levy, seizure, or attachment on or of Collateral which is not removed within 10
days; (vi) the death of, appointment of guardian for, dissolution of,
termination of existence of, loss of good standing status by, appointment of a
receiver for, assignment for the benefit of creditors of, or commencement of any
bankruptcy or insolvency proceeding by or against Debtor, its Subsidiaries or
Affiliates ("Affiliate" shall have the meaning as defined in 11 U.S.C. (S) 101;
and "Subsidiary" shall mean any corporation of which more than 50% of the issued
and outstanding voting stock is owned directly or indirectly by Debtor), if any,
or any general partner of or the holder(s) of the majority ownership interests
in Debtor or any party to the Loan Documents; or (vii) any attempt to terminate,
revoke, rescind, modify, or violate the terms of this Security Agreement without
the prior written consent of Bank.

REMEDIES ON DEFAULT (INCLUDING POWER OF SALE).  If a Default occurs, all of the
Obligations shall be immediately due and payable, without notice and Bank shall
have all the rights and remedies of a secured party under the Uniform Commercial
Code. Without limitation thereto, Bank shall have the following rights and
remedies: (i) to take immediate possession of Collateral, without notice or
resort to legal process, and for such purpose, to enter upon any premises on
which Collateral or any part thereof may be situated and to remove the same
therefrom, or, at its option, to render Collateral unusable or dispose of said
Collateral on Debtor's premises; (ii) to require Debtor to assemble the
Collateral and make it available to Bank at a place to be designated by Bank;
(iii) to exercise its right of set-off or bank lien as to any monies of Debtor
deposited in accounts of any nature maintained by Debtor with Bank or affiliates
of Bank, without advance notice, regardless of whether such accounts are general
or special; (iv) to dispose of Collateral, as a unit or in parcels, separately
or with any real property interests also securing the Obligations, in any county
or place to be selected by Bank, at either private or public sale (at which
public sale Bank may be the purchaser) with or without having the Collateral
physically present at said sale.

Any notice of sale, disposition or other action by Bank required by law and sent
to Debtor at Debtor's address shown above, or at such other address of Debtor as
may from time to time be shown on the records of Bank, at least 5 days prior to
such action, shall constitute reasonable notice to Debtor.  Notice shall be
deemed given or sent when mailed postage prepaid to Debtor's address as provided
herein.  Bank shall be entitled to apply the proceeds of any sale or other
disposition of the Collateral, and the payments received by Bank with respect to
any of the Collateral, to Obligations in such order and manner as Bank may
determine.  Collateral that is subject to rapid declines in value and is
customarily sold in recognized markets may be disposed of by Bank in a
recognized market for such collateral without providing notice of sale.  Debtor
waives any and all requirements that the Bank sell or dispose of all or any part
of the Collateral at any particular time, regardless of whether Debtor has
requested such sale or disposition.

REMEDIES ARE CUMULATIVE.  No failure on the part of Bank to exercise, and no
delay in exercising, any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise by Bank or any right,
power or remedy hereunder preclude any other or further exercise thereof or the
exercise of any right, power or remedy.  The remedies herein provided are
cumulative and are not exclusive of any remedies provided by law, in equity, or
in other Loan Documents.

                                    Page 4
<PAGE>

MISCELLANEOUS.  (i) AMENDMENTS AND WAIVERS.  No waiver, amendment or
modification of any provision of this Security Agreement shall be valid unless
in writing and signed by Debtor and an officer of Bank.  No waiver by Bank of
any Default shall operate as a waiver of any other Default or of the same
Default on a future occasion.  (ii) ASSIGNMENT.  All rights of Bank hereunder
are freely assignable, in whole or in part, and shall inure to the benefit of
and be enforceable by Bank, its successors, assigns and affiliates.  Debtor
shall not assign its rights and interest hereunder without the prior written
consent of Bank, and any attempt by Debtor to assign without Bank's prior
written consent is null and void.  Any assignment shall not release Debtor from
the Obligations.  This Security Agreement shall be binding upon Debtor, and the
heirs, personal representatives, successors, and assigns of Debtor.  (iii)
APPLICABLE LAW; CONFLICT BETWEEN DOCUMENTS.  This Security Agreement shall be
governed by and construed under the law of the state named in the address of the
Bank first shown above without regard to that state's conflict of laws
principles.  If any terms of this Security Agreement conflict with the terms of
any commitment letter or loan proposal, the terms of this Security Agreement
shall control.  (iv) JURISDICTION.  Debtor irrevocably agrees to non-exclusive
personal jurisdiction in the state in which the office of Bank as stated above
is located.  (v) SEVERABILITY.  If any provision of this Security Agreement
shall be prohibited by or invalid under applicable law, such provision shall be
ineffective but only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Security Agreement.  (vi) NOTICES.  Any notices to Debtor shall be sufficiently
given, if in writing and mailed or delivered to the address of Debtor shown
above or such other address as provided hereunder; and to Bank, if in writing
and mailed or delivered to Bank's office address shown above or such other
address as Bank may specify in writing from time to time.  In the event that
Debtor changes Debtor's mailing address at any time prior to the date the
Obligations are paid in full, Debtor agrees to promptly give written notice of
said change of address by registered or certified mail, return receipt
requested, all charges prepaid.  (vii) CAPTIONS.  The captions contained herein
are inserted for convenience only and shall not affect the meaning or
interpretation of this Security Agreement or any provision hereof.  The use of
the plural shall also mean the singular, and vice versa.  (viii) JOINT AND
SEVERAL LIABILITY.  If more than one party has signed this Security Agreement,
such parties are jointly and severally obligated hereunder.  (ix) BINDING
CONTRACT.  Debtor by execution and Bank by acceptance of this Security
Agreement, agree that each party is bound by all terms and provisions of this
Security Agreement.  (x) LOAN DOCUMENTS.  The term "Loan Documents" refers to
all documents, whether now or hereafter existing, executed in connection with or
related to the Obligations and may include, without limitation and whether
executed by Debtor or others, commitment letters, loan agreements, guaranty
agreements, confirmations, deposit or other similar agreements, other security
agreements, letters of credit, instruments, financing statements, mortgages,
deeds of trust, deeds to secure debt, and any amendments or supplements
(excluding swap agreements as defined in 11 U.S.C. (S) 101).

IN WITNESS WHEREOF, Debtor, on the day and year first written above, has caused
this Security Agreement to be executed under seal.

                   Inter Act Electronic Marketing, Inc.
                   Taxpayer Identification Number: 56-1817510

                 By:                                     (SEAL)
                    -------------------------------------
                    Name:
                         -----------------------
                    Title:
                          ----------------------

                                    Page 5
<PAGE>

                               Schedule A to UCC

SCHEDULE A TO UCC FROM INTER ACT ELECTRONIC MARKETING, INC. ("DEBTOR") AND FOR
THE BENEFIT OF FIRST UNION NATIONAL BANK ("SECURED PARTY").

DESCRIPTION OF COLLATERAL:

All of Debtor's present and future accounts, accounts receivable, equipment
consisting of ILN Terminals, and inventory (the "Property); all of Debtor's
right, title and interest, and all of Debtor's remedies, security and liens, in,
to and in respect of the Property, including without limitation, rights of
stoppage in transit, replevin, repossession and reclamation and other rights and
remedies of an unpaid vendor, lienor and secured party, guaranties or other
contracts of suretyship with respect to the Property, deposits or other security
for the obligation of any account debtor, and credit and other insurance on any
property; all of Debtor's right, title and interest in, to and in respect to, or
otherwise representing or evidencing any Property, and all returned, reclaimed
or repossessed goods; all books, records, ledger cards and other property and
general intangibles at any time evidencing or relating to the Property, together
with all accessions, additions, replacements and substitutions thereto and
therefor and all products and proceeds thereof and therefrom (including proceeds
of all insurance arising therefrom) (collectively, the "Collateral").<PAGE>
                                                                   EXHIBIT 10.13

                            [PlaceWare Letterhead]

July 7, 2000

Mr. James Hogan
PlaceWare, Inc.
295 North Bernardo Ave.
Mountain View, CA  94043

Re:  Loan and Loan Forgiveness Agreement
     -----------------------------------

Dear Jim:

     The following Letter Agreement (the "Agreement") sets forth the terms of an
agreement between James A. Hogan ("you") and PlaceWare, Inc., a Delaware
corporation (the "Company").  Under the terms of this Agreement, the Company
agrees to make a loan to you in the amount of $295,000 (the "Loan"), and in
connection with the repayment of the Loan, the Company shall forgive the final
$50,000 principal payment, shall forgive the payment of any interest accrued
under the Loan and shall provide a bonus payment to you to compensate you for
any tax liability and for any accountant's fees that are incurred in connection
with the Loan and interest forgiveness provisions (the "Forgiveness
Provisions").  In consideration of the Loan and the Forgiveness Provisions, you
hereby agree to release the Company from any present or future claims related to
the Company's failure to timely file an 83(b) election with the Internal Revenue
Service on your behalf ("the 83(b) Event"), which contributed to your increased
tax liability, as calculated on the attached Schedule C.

1.   Loan amount
     ------------

     The Company hereby agrees to make a secured loan to you in the principal
amount of $295,000, to be paid out in a series of payments as provided on the
Loan Payment Schedule attached hereto as Exhibit A to this Agreement (the "Loan
                                         ---------
Payment Schedule"), and shall be repaid quarterly over a three year period, also
as provided on the Loan Payment Schedule.  The Loan shall be made pursuant to
the terms of a Secured Promissory Note, attached hereto as Exhibit B (the
                                                           ---------
"Note"), and shall be secured by 125,000 shares of Common Stock of the Company
owned by you.  The interest rate on the Loan shall be the lowest applicable
federate rate in effect for April 2001.

     On the date on which a payment is to be made pursuant to the Loan Payment
Schedule, or on the date five (5) business days prior to the date on which any
payment attributed to your increased tax liability becomes due as set forth on

Schedule C, the Company shall release from the Company's security interest such
----------
minimum whole number of shares as is necessary to make such payment based on the
fair market value of such shares.  The fair market value of the shares shall
equal the closing price of the shares of stock as provided three (3) business
days prior to the date on which the payment is to be made, or in the event that
the shares are not publicly traded, as determined by the Board of Directors of
the Company.

     Upon your written request, not to be made more than once every three (3)
months, commencing on the date three (3) months from the Company's first Loan
payment, the Company shall adjust the number of your shares subject to the
Company's security interest.  The written request shall specify a date upon
which the adjustment is to be made, no sooner than five (5) business days from
which the request is made.  The number of shares subject to the Company's
security interest shall be adjusted such that the
<PAGE>

Mr. James Hogan
July 7, 2000

aggregate fair market value of the shares shall be equal to two times the value
of the outstanding principal and interest. The fair market value of the shares
shall equal the closing price of the shares of stock as provided three (3) days
prior to the date on which the adjustment is to be made.

2.   Forgiveness of debt
     -------------------

     As described on the Loan Payment Schedule, you shall begin payment of the
Loan in April 2002 and shall make a final payment in January 2004, leaving an
outstanding principal balance of $50,000 to be due under the Loan.  In
connection with this Agreement, the Company shall forgive this final outstanding
principal balance.

3.   Forgiveness of interest payment
     -------------------------------

     Under the terms of the Note, each quarterly repayment shall consist of
principal and accrued interest.  In connection with each repayment, the Company
agrees to forgive any portion of the repayment that is attributed to accrued
interest.

4.   Bonus payment
     -------------

     The Company also agrees to pay a one-time bonus to you to reimburse you for
any increased tax liabilities that you may incur in connection with the
Forgiveness Provisions in Sections 2 and 3 of this Agreement.  The bonus payment
shall be made in such amount that the net payment to you, after standard payroll
deductions and required withholdings, shall reimburse you for your increased tax
liability incurred in connection these forgiveness provisions, as communicated
to the Company in a detailed statement from your accountant.

5.   Reimbursement of accountant fees
     --------------------------------

     The Company hereby agrees pay any fees charged by your accountant for
services rendered in connection with the 83(b) Event and the review and
negotiation of this Agreement.

6.   Satisfaction and release of claims
     ----------------------------------

     In consideration of the above Loan and Forgiveness Provisions, you hereby
agree to release the Company, its directors, officers, employees or agents, and
any person acting on behalf of or at the request of the Company, from any
liability in connection with the 83(b) Event, and agree to refrain from bringing
any claims, actions and suits, for any and all losses, damages, costs, expenses
and liabilities whatsoever, which you may sustain or incur in connection with
said 83(b) Event.  You acknowledge that you have had the opportunity to consult
with both tax and legal advisors regarding this Agreement and the tax
liabilities described in Exhibit C, that such exhibit was prepared by such
                         ---------
advisors, and that you are releasing the Company from any and all liability
associated with the 83(b) Event after consultation with such advisors and not in
reliance on any representations made by the Company, its directors, officers,
employees or agents.

                                       2
<PAGE>

Mr. James Hogan
July 7, 2000

7.   Survival
     --------

     In the event of a "change in control" event, as defined below, or in the
event that your employment with the Company is terminated, the Loan shall
continue to be repaid to the surviving company pursuant to the schedule
disclosed in the Note.  A "change in control" event shall mean (a) a
consolidation or merger of the Company or any affiliated corporation with or
into any other corporation or corporations, (b) the sale of all or substantially
all of the assets or business of the Company in one or more related
transactions, (c) a transaction or series of related transactions (other than a
public offering of the Company's securities) in which the stockholders of the
Company immediately prior to such transaction(s) own, as a result of such
transaction(s), less than a majority of the voting securities of the successor
or surviving corporation, which shall not be the Company in the event of a
consolidation or merger, immediately thereafter, or (d) a transaction or series
of related transactions (other than a public offering of the Company's
securities) in which the Company issued shares representing more than 50% of the
voting power of the Company immediately after giving effect to such transaction.

8.   Attorney's Fees
     ---------------

     In the event a suit, action , or other proceeding of any nature whatsoever
is instituted to enforce or interpret any provision of this Agreement or in
connection with any dispute hereunder, the prevailing party shall be entitled to
recover its attorneys', paralegals' accountants', and other experts' fees and
all other fees, costs, and expenses actually incurred and reasonably necessary
in connection therewith, as determined by the court at trial or on any appeal or
review, in addition to all other amounts provided by law.

     If the foregoing terms meet with your approval, please countersign this
letter and return it to the Company at your earliest convenience, such that we
may make the appropriate arrangements in connection with the bonus payment and
Loan to be made on your behalf.  Again, we apologize for any inconvenience that
you may have been caused, and look forward to maintaining our strong
relationship in the future.

Sincerely,

PlaceWare, Inc.

By: /s/ Barry James Folsom
   ---------------------------------------
    Barry James Folsom
    President and Chief Executive Officer

Accepted and agreed:

 /s/ James A. Hogan
------------------------------------------
James A. Hogan

Date: July 7, 2000
     -------------------------------------

                                       3
<PAGE>

                                   Exhibit A

                             LOAN PAYMENT SCHEDULE
<PAGE>

                                    Exhibit A

                              LOAN PAYMENT SCHEDULE

                Date             Principal Due         Loan Balance
       -------------------------------------------------------------------

                                                        $295,000
               Apr-02             $(180,000)             115,000
               Jun-02               (10,000)             105,000
               Sep-02               (10,000)              95,000
               Jan-02               (10,000)              85,000
               Apr-03               (10,000)              75,000
               Jun-03               (10,000)              65,000
               Sep-03               (10,000)              55,000
               Jan-04                (5,000)              50,000

                                   Remaining balance    $ 50,000

<PAGE>

                                   Exhibit B

                            SECURED PROMISSORY NOTE

<PAGE>

$295,000                                                    Date:  April 1, 2001

    For value received, the undersigned ("Borrower") hereby unconditionally
promises to pay to PlaceWare, Inc. (the "Company"), at 295 North Bernardo Ave.,
Mountain View, CA  94043, the sum of Two Hundred Ninety-Five Thousand dollars
($295,000), together with interest thereon.  This Note shall be subject to the
following terms and conditions.

1.  Interest.  The unpaid principal sum of this Note shall bear interest,
calculated annually, at the rate of ________% per annum.

2.  Repayment.  Except as provided in paragraphs 3 and 4 below, the unpaid
principal balance of this Note shall be due in twelve (12) quarterly
installments beginning July 1, 2001 and ending January 1, 2004, as described on
the Loan Payment Schedule, attached hereto as Exhibit A.  All money paid toward
the satisfaction of this Note shall be applied first to the payment of any
accrued interest on the principal as required hereunder and then to the
retirement of the principal.  All payments of interest and principal shall be in
lawful money of the United States of America in immediately available funds or
the equivalent at such address as the Company may designate.

3.  Default; Acceleration.  If the undersigned fails to pay any portion of
principal or interest on any of the amounts owing hereunder when and as the same
become due and payable, and such failure is not cured to the Company's
satisfaction within thirty (30) days, the undersigned shall be in default under
this Note.  Upon the occurrence of a default hereunder, all unpaid principal,
accrued interest and other amounts owing hereunder shall, at the option of the
Company, be immediately collectible by or on behalf of the Company pursuant to
this Note and applicable law.

4.  Security Interest.  As partial collateral security for prompt and complete
payment and performance of all obligations of Borrower under this Note and to
induce the Company to extend credit, Borrower hereby assigns, conveys, grants,
pledges and transfers to and creates in favor of the Company a security interest
in (125,000) shares of Common Stock of the Company owned by Borrower represented
by Certificate numbered CS-137 (the "Collateral").  Capitalized terms used in
the previous sentence but not defined have the meanings set forth in the Uniform
Commercial Code, as in effect in the State of California.  Borrower shall, upon
demand, do all such acts as the Company may reasonably request to establish and
maintain a perfected security interest in the Collateral.

     Upon the written request of the Borrower, not to be made more than once
every three (3) months, commencing on the date three (3) months from the date
hereof, the Company shall adjust the number of your shares subject to the
Company's security interest.  The written request shall specify a date upon
which the adjustment is to be made, no sooner than five (5) business days from
which the request is made.  The number of shares subject to the Company's
security interest shall be adjusted such that the aggregate fair market value of
the shares shall be equal to two times the value of the outstanding principal
and interest.  The fair market value of the shares
<PAGE>

shall equal the closing price of the shares of stock as provided three (3) days
prior to the date on which the adjustment is to be made.

5.  Prepayment.  This Note may be prepaid without penalty, in full or in part,
at any time.

6.  Expenses.  In the event of any default hereunder, the undersigned shall pay
all reasonable attorney's fees and court costs incurred by the Company in
enforcing and collecting this Note.

7.  Waivers.  The undersigned hereby waives presentment, protest, notice of
protest, notice of non payment, notice of dishonor and any and all other notices
of demands relative to this Note and the benefit of any statute of limitations
with respect to any action to enforce this Note.

8.  Binding Agreement.  This Note shall be binding upon the undersigned and the
Company and their representatives, successors and assigns.

9.  Governing Law.  This Note shall be governed by and construed under the laws
of the State of California.

/s/ James A. Hogan
-------------------------
James A. Hogan
<PAGE>

                                  Exhibit C

                             TAX LIABILITY TABLES
<PAGE>

                                PlaceWare, Inc.

                                   Exhibit C
                                   ---------

                              Taxes Due Time Line
                              -------------------

<TABLE>
<CAPTION>

                   Taxes Due
                      As                                            Taxes Due                             Loan &
 Quarter           Quarterly                           Loan        To Company                              Hogan
Beginning           Planned        Cumulative         Amount        Oversign          Cumulative       Original Tax
---------         -----------      ----------       -----------    ----------         ----------       ------------
<S>               <C>              <C>              <C>            <C>                <C>              <C>

  Apr-99          $    19,599      $   19,599                        $  19,599         $ 19,599
  Jun-99          $    19,599      $   39,198                        $  19,599         $ 39,198
  Sep-99          $    19,599      $   58,797                        $  19,599         $ 58,797
  Jan-00          $    19,599      $   78,396                        $  19,599         $ 78,396
  Apr-00          $    51,572      $  129,968                        $  19,599         $ 97,995
  Jun-00          $    17,892      $  147,860                        $  19,599         $117,594
  Sep-00          $    17,892      $  165,752                        $  19,599         $137,193
  Jan-01          $    17,892      $  183,644                        $  19,599         $156,792
  Apr-01          $    18,786      $  202,430        $ 215,000       $ 257,233         $414,025         $ 417,430
  Jun-01          $    18,786      $  221,216        $  25,000       $  46,504         $460,529         $ 461,216
  Sep-01          $    18,786      $  240,002        $  30,000       $  46,504         $507,032         $ 510,002
  Jan-02          $    18,786      $  258,788        $  25,000       $  46,504         $553,536         $ 553,788
  Apr-02          $   218,678      $  477,466        $(180,000)      $  33,332         $586,868         $ 592,466
  Jun-02          $    41,808      $  519,275        $ (10,000)      $  33,332         $620,200         $ 624,275
  Sep 02          $    41,808      $  561,083        $ (10,000)      $  33,332         $653,532         $ 656,083
  Jan 03          $    41,808      $  602,891        $ (10,000)      $  33,332         $686,864         $ 687,891
  Apr-03          $    41,808      $  644,699        $ (10,000)      $  33,332         $720,196         $ 719,699
  Jun-03          $    41,808      $  686,508        $ (10,000)      $  33,332         $753,528         $ 751,508
  Sep-03          $    41,808      $  728,316        $ (10,000)      $  33,332         $786,860         $ 783,316
  Jan-04          $    41,808      $  770,124        $  (5,000)      $  33,332         $820,192         $ 820,124

                  $   770,124                                        $ 820,192

</TABLE>

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