Document:

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[SANWA BANK LOGO]

                                                                    EXHIBIT 10.6

                               CREDIT AGREEMENT

                               (LINE OF CREDIT)

     This Agreement is made and entered into as of Sept. 21, 1999, by and
between SANWA BANK CALIFORNIA (the "Bank") and TRINET EMPLOYER GROUP, INC. (the
"Borrower"), on the terms and conditions that follow:

                                    SECTION

                                       1

                                  DEFINITIONS

1.1  Certain Defined Terms: Unless elsewhere defined in this Agreement, the
     following terms shall have the following meanings (such meanings to be
     generally applicable to the singular and plural forms of the terms
     defined):

     1.1.1   "ASP" or "Average Subscriber Payroll" shall mean the sum of payroll
             disbursements to Subscriber employees divided by the total
             Subscribers.

     1.1.2   "Advance": shall mean an advance to the Borrower under the credit
             facility (ies) described in Section 2.

     1.1.3   "Business Day": shall mean a day, other than a Saturday or Sunday,
             on which commercial banks are open for business in California.

     1.1.4   "Cash Flow": shall mean the sum of net income after tax and
             exclusive of extraordinary gains plus interest expense, plus
             depreciation and amortization expense minus dividends and
             distributions.

     1.1.5   "Collateral": shall mean the property described in Section 3,
             together with any other personal or real property in which the Bank
             may be granted a lien or security interest to secure payment of the
             Obligations.

     1.1.6   "Current Assets": shall mean current assets as determined in
             accordance with generally accepted accounting principles, less all
             amounts due from affiliates, officers or employees.

     1.1.7   "Current Liabilities": shall mean current liabilities as determined
             in accordance with generally accepted accounting principles,
             including any negative cash balance on the Borrower's financial
             statement and Indebtedness for borrowed money under lines of credit
             with the Bank used by the Borrower for working capital purposes.

     1.1.8   "Debt": shall mean all interest bearing liabilities of the Borrower
             less Subordinated Debt, if any.

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     1.1.9   "EBITDA": shall mean earnings exclusive of extraordinary gains and
             before deductions for interest expense, taxes, depreciation and
             amortization expense.

     1.1.10  "Effective Tangible Net Worth": shall mean the Borrower's stated
             net worth plus Subordinated Debt but less all intangible assets of
             the Borrower (i.e., goodwill, trademarks, patents, copyrights,
             organization expense, and similar intangible items including, but
             not limited to, investments in and all amounts due from affiliates,
             officers or employees).

     1.1.11  "Environmental Claims": shall mean all claims, however asserted, by
             any governmental authority or other person alleging potential
             liability or responsibility for violation of any Environmental Law
             or for release or injury to the environment or threat to public
             health, personal injury (including sickness, disease or death),
             property damage, natural resources damage, or otherwise alleging
             liability or responsibility for damages (punitive or otherwise),
             cleanup, removal, remedial or response costs, restitution, civil or
             criminal penalties, injunctive relief, or other type of relief,
             resulting from or based upon (a) the presence, placement,
             discharge, emission or release (including intentional and
             unintentional, negligent and non-negligent, sudden or non-sudden,
             accidental or non-accidental placement, spills, leaks, discharges,
             emissions or releases) of any Hazardous Material at, in, or from
             property, whether or not owned by the Borrower, or (b) any other
             circumstances forming the basis of any violation, or alleged
             violation, of any Environmental Law.

     1.1.12  "Environmental Laws": shall mean all federal, state or local laws,
             statutes, common law duties, rules, regulations, ordinances and
             codes, together with all administrative orders, directed duties,
             requests, licenses, authorizations and permits of, and agreements
             with, any governmental authorities, in each case relating to
             environmental, health, safety and land use matters; including the
             Comprehensive Environmental Response, Compensation and Liability
             Act of 1980 ("CERCLA"), the Clean Air Act, the Federal Water
             Pollution Control Act of 1972, the Solid Waste Disposal Act, the
             Federal Resource Conservation and Recovery Act, the Toxic
             Substances Control Act, the Emergency Planning and Community Right-
             to-Know Act, the California Hazardous Waste Control Law, the
             California Solid Waste Management, Resource, Recovery and Recycling
             Act, the California Water Code and the California Health and Safety
             Code.

     1.1.13  "Environmental Permits": shall have the meaning provided in Section
             5.11 hereof.

     1.1.14  "ERISA": shall mean the Employee Retirement Income Security Act of
             1974, as amended from time to time, including (unless the context
             otherwise requires) any rules or regulations promulgated
             thereunder.

     1.1.15  "Event of Default": shall have the meaning set forth in Section 7.

     1.1.16  "Expiration Date": shall mean March 31, 2000, or the date of
             termination of the Bank's commitment to lend under this Agreement
             pursuant to Section 8, whichever shall occur first.

     1.1.17  "Hazardous Materials": shall mean all those substances which are
             regulated by, or which may form the basis of liability under, any
             Environmental Law, including all substances identified under any
             Environmental Law as a pollutant, contaminant, hazardous waste,
             hazardous constituent, special waste, hazardous substance,
             hazardous material, or toxic substance, or petroleum or petroleum
             derived substance or waste.

     1.1.18  "Indebtedness": shall mean, with respect to the Borrower, (i) all
             indebtedness for borrowed money or for the deferred purchase price
             of property or services in respect of which the Borrower is liable,
             contingently or otherwise, as obligor, guarantor or otherwise, or
             in respect of which the Borrower otherwise assures a creditor
             against loss and (ii)

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             obligations under leases which shall have been or should be, in
             accordance with generally accepted accounting principles, reported
             as capital leases in respect of which the Borrower is liable,
             contingently or otherwise, or in respect of which the Borrower
             otherwise assures a creditor against loss.

     1.1.19  "LIBOR Rate Advance": shall have the meaning provided in Section
             2.1.5.

     1.1.20  "LIBOR Interest Period": shall have the meaning provided in Section
             2.1.5.

     1.1.21  "LIBOR Rate": shall have the respective meaning provided in Section
             2.1.5.

     1.1.22  "Line Account": shall have the meaning provided in Section 2.2
             hereof.

     1.1.23  "Line of Credit": shall mean the credit facility described as such
             in Section 2.

     1.1.24  "Obligations": shall mean all amounts owing by the Borrower to the
             Bank pursuant to this Agreement including, but not limited to, the
             unpaid principal amount of Advances.

     1.1.25  "Ordinary Course of Business": shall mean, with respect to any
             transaction involving the Borrower or any of its subsidiaries or
             affiliates, the ordinary course of the Borrower's business, as
             conducted by the Borrower in accordance with past practice and
             undertaken by the borrower in good faith and not for the purpose of
             evading any covenant or restriction in this Agreement or in any
             other document, instrument or agreement executed in connection
             herewith.

     1.1.26  "PAP": shall mean Performance Assurance Payments or deposits which
             are made by Subscribers pursuant to a Subscriber Service Agreement
             between Borrower and its Subscribers and held in a trust account
             with Bank.

     1.1.27  "Permitted Liens": shall mean: (i) liens and security interests
             securing indebtedness owed by the Borrower to the Bank; (ii) liens
             for taxes, assessments or similar charges not yet due; (iii) liens
             of materialmen, mechanics, warehousemen, or carriers or other like
             liens arising in the Ordinary Course of Business and securing
             obligations which are not yet delinquent; (iv) purchase money liens
             or purchase money security interests upon or in any property
             acquired or held by the Borrower in the Ordinary Course of Business
             to secure Indebtedness outstanding on the date hereof or permitted
             to be incurred under Section 5.7 hereof; (v) liens and security
             interests which, as of the date hereof, have been disclosed to and
             approved by the Bank in writing; and (vi) those liens and security
             interests which in the aggregate constitute an immaterial and
             insignificant monetary amount with respect to the net value of the
             Borrower's assets.

     1.1.28  "Prior Agreement": means and refers to that certain Equipment
             Purchase Line of Credit Agreement dated as of September 29, 1998,
             between Bank and Borrower.

     1.1.29  "Reference Rate": shall mean an index for a variable interest rate
             which is quoted, published or announced by Bank as its reference
             rate and as to which loans may be made by Bank at, above or below
             such rate.

     1.1.30  "Subordinated Debt": shall mean such liabilities of the Borrower
             which have been subordinated to those owed to the Bank in a manner
             acceptable to the Bank.

     1.1.31  "Subscriber": shall mean an individual or firm who has entered into
             a Subscriber Service Agreement with Borrower, whereby Borrower
             provides certain payroll and other services to the subscriber.

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     1.1.32  "Term Loan": means and refers to the term loan described in
             Section 2.1.3.

     1.1.33  "This Agreement": means and refers to this Agreement and all
             amendments, supplements, modifications and addenda hereto,

     1.1.34  "Variable Rate Advance": shall have the respective meaning as it is
             defined for each facility under Section 2, hereof.

     1.1.35  "Variable Rate": shall have the respective meaning as it is defined
             for each facility under Section 2, hereof.

1.2  Accounting Terms: All references to financial statements, assets,
     liabilities, and similar accounting items not specifically defined herein
     shall mean such financial statements or such items prepared or determined
     in accordance with generally accepted accounting principles consistently
     applied and, except where otherwise specified, all financial data submitted
     pursuant to this Agreement shall be prepared in accordance with such
     principles.

1.3  Other Terms: Other terms not otherwise defined shall have the meanings
     attributed to such terms in the California Uniform Commercial Code.

                                    SECTION

                                       2

                               CREDIT FACILITIES

2.1  THE LINE OF CREDIT

     2.1.1   The Line of Credit: On terms and conditions as set forth herein,
             the Bank agrees to make Advances to the Borrower from time to time
             from the date hereof to the Expiration Date, provided the aggregate
             amount of such Advances outstanding at any time does not exceed
             $4,000,000.00 (the "Line of Credit"). Any sums repaid under the
             Line of Credit may not be re-borrowed. Advances under the Line of
             Credit shall be used for the only for the purposes set forth in
             Exhibit 2.1.1, and in amounts not to exceed those specified for
             each such purpose. The amount of any and all Advance shall be
             subject to any further limitations set forth in Exhibit 2.1.1.

             Bank shall have no duty to make any requested Advance hereunder if
             Borrower has not provided Bank with such invoices and satisfactory
             supporting documentation (including, without limitation, an
             itemized list of allocated costs prior to such Advance) as Bank may
             require to evidence that the requested Advance has been or will be
             used by Borrower for the purposes and in the amounts specified in
             such exhibit.

     2.1.2   Making Line Advances: Each Advance shall be conclusively deemed to
             have been made at the request of and for the benefit of the
             Borrower (i) when credited to any deposit account of the Borrower
             maintained with the Bank or (ii) when paid in accordance with the
             Borrower's written instructions. Subject to the requirements of
             Section 4 and provided such request is made in a timely manner as
             provided in Section 2.1.6 below, Advances shall be made by the Bank
             under the Line of Credit.

     2.1.3   Repayment of Line of Credit: Unless sooner due in accordance with
             the terms of this Agreement or Bank has extended the Term Loan as
             contemplated herein, the Borrower hereby promises to pay in full on
             the Expiration Date, the aggregate unpaid principal amount of all
             Advances and then outstanding, together with all accrued and unpaid
             interest thereon. Bank agrees to lend to Borrower on the Expiration
             Date an amount equal to the

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             outstanding amount of all Advances (the "Term Loan") provided no
                                                      ----------
             Event of Default has occurred or is continuing on the Expiration
             Date, and provided such Term Loan is to be evidenced by and subject
             to a promissory note to be in form and content safisfactory to Bank
             and executed by Borrower. Interest shall accrue and be payable on
             the terms set forth in the promissory note. The proceeds of Term
             Loan shall be used solely to repay such Advances.

     2.1.4   Repayment of the Term Loan. The Term Loan shall be repaid in 36
             monthly installments, such payments to begin on the April 30, 2000,
             and continue thereafter on the last day of each succeeding month to
             and including February 28, 2003, with a final payment due on March
             31, 2003, at which time all outstanding principal plus all accrued
             and unpaid interest on such loan shall be immediately due and
             payable.

     2.1.5   Interest. Interest shall accrue from the date of each Advance at
             one of the following rates, as quoted by the Bank and as elected by
             the Borrower:

             (i)    Variable Rate : A variable rate per annum equivalent to an
                    index for a variable interest rate which is quoted,
                    published or announced from time to time by the Bank as its
                    reference rate (the "Reference Rate") and as to which loans
                                         --------------
                    may be made by the Bank at, below or above such Reference
                    Rate plus one percent (the "Variable Rate"). Interest shall
                                                -------------
                    be adjusted concurrently with any change in the Reference
                    Rate. Each Advance based upon the Variable Rate is
                    hereinafter referred to as a "Variable Rate Advance."
                                                  ---------------------

             (ii)   LIBOR Rate. In addition to Variable Rate Advances, the Bank
                    hereby agrees to make one or more Advances (in the minimum
                    amount $250,000.00), which shall accrue interest at a fixed
                    rate quoted by the Bank for a minimum of three months or for
                    such other period of time that the Bank may elect to quote
                    and offer (provided that any such period of time does not
                    extend beyond the maturity date of the relevant Advance)
                    [the "LIBOR Interest Period"]. Such interest rate (the
                          ---------------------
                    "LIBOR Rate") shall be a percentage approximately equivalent
                     ----------
                    to 3.60% in excess of LIBOR as determined by Bank. LIBOR
                    means, as of the date the same is to be determined, the U.S.
                    dollar London Interbank Offered Rate as of such date for
                    a U.S. dollar deposit in an amount approximately equal to
                    the amount of the relevant advance or term loan and for a
                    period of time approximately equal to the relevant LIBOR
                    Interest Period, as appearing on page 3750 (or such other
                    page as may replace page 3750 of the Telerate screen at or
                    about 11:00 a.m. (London time) on the second Business Day
                    prior to the first day of the relevant LIBOR Interest
                    Period. Each Advance bearing interest at the LIBOR Rate is
                    hereinafter referred to as a "LIBOR Rate Advance. "
                                                  ------------------

             (iii)  Payment of Interest. On the Advances, Borrower hereby
                    promises and agrees to pay interest monthly on the last day
                    of each month beginning September 30, 1999, and continuing
                    on the same date of each succeeding month thereafter. In
                    addition, with respect to each LIBOR Rate Advance and/or
                    advance bearing interest at the LIBOR Rate, Borrower
                    promises to pay interest on the last day of the relevant
                    LIBOR Interest Period pertaining thereto. Interest not paid
                    when due shall be added to principal and become part
                    thereof, and shall thereafter bear like interest. Interest
                    shall be computed on the basis of 360 days per year, but
                    charged on the actual number of days elapsed.

     2.1.6   Notice of Borrowing: Upon written or telephonic notice which shall
             be received by the Bank at or before 2:00 p.m. (California time) on
             a Business Day, the Borrower may borrow under the Line of Credit by
             requesting:

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          (i)  A Variable Rate Advance. A Variable Rate Advance may be made on
               the day notice is received by the Bank; provided, however, that
               if the Bank shall not have received notice at or before 2:00 p.m.
               on the day such Advance is requested to be made, such Variable
               Rate Advance may, at the Bank's option, be made on the next
               Business Day.

          (ii) A LIBOR Advance. Notice of any LIBOR Advance shall be received by
               the Bank no later than two Business Days prior to the day (which
               shall be a Business Day) on which the Borrower requests such
               LIBOR Advance to be made.

     2.1.7   Notice of Election to Adjust Interest Rate. Upon telephonic notice
             which shall be received by the Bank at or before 2:00 p.m.
             (California time) on a business day, the Borrower may elect:

               (a)  That interest on a Variable Rate Advance shall be adjusted
               to accrued at the LIBOR Rate; provided, however, that such notice
               shall be received by the Bank no later than two business days
               prior to the day (which shall be a business day) on which
               Borrower requests that interest be adjusted to accrue at the
               LIBOR Rate.

               (b)  That interest on a LIBOR Rate Advance shall continue to
               accrue at a newly quoted LIBOR Rate as the case may be or shall
               be adjusted to commence to accrue at the Variable Rate; provided,
                                                                       ---------
               however, that such notice shall be received by the Bank no later
               ---------
               than two business days prior to the last day of the LIBOR
               Interest Period pertaining to such LIBOR Rate Advance, as
               applicable. If the Bank shall not have received notice as
               prescribed herein of Borrower's election that interest on any
               LIBOR Rate Advance shall continue to accrue at the LIBOR Rate,
               Borrower shall be deemed to have elected that interest thereon
               shall be adjusted to accrue at the Variable Rate upon the
               expiration of the LIBOR Interest Period pertaining thereto.

     2.1.8   Prohibition Against Prepayment of LIBOR Rate Advances.
             Notwithstanding anything to the contrary, no prepayment shall be
             made on any LIBOR Rate Advance except on a day which is the last
             day of the LIBOR Interest Period pertaining thereto. If the whole
             or any part of any LIBOR Rate Advance is prepaid by reason of
             acceleration or otherwise, the Borrower shall, upon the Bank's
             request, promptly pay to the Bank a prepayment premium equal to
             (and shall and indemnify the Bank for) (i) all costs and expenses
             incurred by the Bank and (ii) any loss deemed sustained by the Bank
             as a consequence of such prepayment, including loss of future
             interest income resulting from the re-employment of funds).

             The Bank shall be entitled to fund all or any portion of its LIBOR
             Rate Advances in any manner it may determine in its sole
             discretion, but all calculations and transactions hereunder shall
             be conducted as though the Bank actually funded all such through
             the sale of U.S. Treasury securities in the amount of the relevant
             advance or the relevant LIBOR Rate Advance and in maturities
             corresponding to the then applicable LIBOR Interest Period.

     2.1.9   Mandatory Conversion from LIBOR Rate to Variable Rate. In the event
             that the Bank, shall at any time determine that the accrual of
             interest on the basis of the LIBOR Rate (i) is unfeasible because
             the Bank is unable to determine such rate due to the unavailability
             of U.S. dollar deposits, contracts or certificates of deposit in an
             amount approximately equal to the amount of the relevant Advance
             and for a period of time approximately equal to the relevant LIBOR
             Interest Period pertaining thereto; or (ii) is or has become
             unlawful or unfeasible by reason of the Bank's compliance with any
             new law, rule, regulation, guideline or order, or any new
             interpretation of any present law, rule, regulation, guideline or
             order,

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<PAGE>

             then the Bank shall give telephonic notice thereof (confirmed in
             writing) to the Borrower, in which event any such Advance as the
             case may be shall be deemed to be a Variable Advance and interest
             shall thereupon immediately accrue at the Variable Rate."

     2.1.10  Indemnification for LIBOR Rate Costs. During any period of time in
             which interest on any Advance is accruing on the basis of the LIBOR
             Rate, the Borrower shall, upon the Bank's request, promptly pay to
             and reimburse the Bank for all costs incurred and payments made by
             the Bank by reason of any future assessment, reserve, deposit or
             similar requirements or any surcharge, tax or fee imposed upon the
             Bank or as a result of the Bank's compliance with any directive or
             requirement of any regulatory authority pertaining or relating to
             funds used by the Bank in quoting and determining the LIBOR Rate or
             at such fixed rate.

2.2  Line Account:

     2.2.1   The Bank shall maintain on its books a record of account in which
             the Bank shall make entries for each Advance and such other debits
             and credits as shall be appropriate in connection with the credit
             facilities granted hereunder (the "Line Account"). The Bank shall
             provide the Borrower with a statement of the Borrower's Line
             Account, which statement shall be considered to be correct and
             conclusively binding on the Borrower unless the Borrower notifies
             the Bank to the contrary within 30 days after the Borrower's
             receipt of any such statement which it deems to be incorrect.

     2.2.2   The Borrower hereby authorizes the Bank to charge, from time to
             time, against any or all of the Borrower's deposit accounts with
             the Bank any amount so due under this Agreement, including, but not
             limited to, account # 0560-53600 maintained with the Bank's Hayward
             Office (BBC).

     2.2.3   If any payment required to be made by the Borrower hereunder
             becomes due and payable on a day other than a Business Day, the due
             date thereof shall be extended to the next succeeding Business Day
             and interest thereon shall be payable at the then applicable rate
             during such extension. All payments required to be made hereunder
             shall be made to the office of the Bank designated for the receipt
             of notices herein or such other office as Bank shall from time to
             time designate.

2.3  Late Payment: In addition to any other rights the Bank may have
     hereunder, if any payment of principal or interest or any portion thereof,
     under this Agreement is not paid within 5 days of when due, a late payment
     charge equal to five percent (5%) of such past due payment may be assessed
     and shall be immediately payable.

2.4  Prior Agreement. In consideration of the credit facility extended by
     Bank to Borrower hereunder, no further loans or advances will be made by
     Bank under the Prior Agreement, and the line of credit granted thereunder
     is hereby cancelled and terminated.

                                    SECTION

                                       3

                                  COLLATERAL

3.1  The Collateral: To secure payment and performance of all the Borrower's
     Obligations under this Agreement and all other liabilities, loans,
     guarantees, covenants and duties owed by the Borrower to the Bank, whether
     or not evidenced by this or by any other agreement, absolute or contingent,
     due or to become due, now existing or hereafter and howsoever created, the
     Borrower hereby grants the Bank a security interest in and to all of the
     following property ("Collateral"):

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          (i)    Equipment All goods now owned or hereafter acquired by the
                 Borrower or in which the Borrower now has or may hereafter
                 acquire any interest, including, but not limited to, all
                 machinery, equipment, furniture, furnishings, fixtures, tools,
                 supplies and motor vehicles of every kind and description, and
                 all additions, accessions, improvements, replacements and
                 substitutions thereto and thereof (the "Equipment").

          (ii)   Inventory. All inventory now owned or hereafter acquired by the
                 Borrower, including, but not limited to, all raw materials,
                 work in process, finished goods, merchandise, parts and
                 supplies of every kind and description, including inventory
                 temporarily out of the Borrower's custody or possession,
                 together with all returns on accounts (the "Inventory").

          (iii)  Accounts. All accounts, contract rights and general intangibles
                 now owned or hereafter created or acquired by the Borrower,
                 including, but not limited to, all receivables, goodwill,
                 trademarks, trademark applications, trade styles, trade names,
                 patents, patent applications, copyrights and copyright
                 applications, customer lists, business records and computer
                 programs, tapes, disks and related data processing software
                 that at any time evidence or contain information relating to
                 any of the Collateral.

          (iv)   Documents. All documents, instruments and chattel paper now
                 owned or hereafter acquired by the Borrower, including, but not
                 limited to, warehouse and other receipts, bills of sale and
                 bills of lading.

          (v)    Monies. All monies, deposit accounts, certificates of deposit
                 and securities of the Borrower now or hereafter in the Bank's
                 or its agents' possession.

The Bank's security interest in the Collateral shall be a continuing lien and
shall include the proceeds and products of the Collateral including, but not
limited to, the proceeds of any insurance thereon.

The security interest granted to Bank in the Collateral shall not secure or be
deemed to secure any Indebtedness of the Borrower to the bank which is, at the
time of its creation, subject to the provisions of any state or federal consumer
credit or truth-in-lending disclosure statutes.

                                    SECTION

                                       4

                             CONDITIONS PRECEDENT

4.1  Conditions Precedent to the Initial Advance: The obligation of the Bank to
     make the initial Advance and the first extension of credit to or on account
     of the Borrower hereunder is subject to the conditions precedent that the
     Bank shall have received before the date of such initial Advance and such
     first extension of credit all of the following, in form and substance
     satisfactory to the Bank:

          (i)    Authority to Borrow. Evidence that the execution, delivery and
                 performance by the Borrower of this Agreement and any document,
                 instrument or agreement required hereunder have been duly
                 authorized.

          (ii)   Fees. A loan fee of $10,000.00, such fee to be deemed to be
                 fully earned upon payment.

                                      -8-
<PAGE>

          (iii)  Financing Statements. Executed UCC-1 financing statement(s)
                 describing the Collateral, which have been filed with the
                 Secretary of State or the county recorder as a lien of first
                 priority.

          (iv)   Audit. The Bank shall have conducted an audit of the Borrower's
                 books, records and operations and the Bank shall be satisfied
                 as to the condition thereof.

          (v)    Miscellaneous. Such other evidence as the Bank may request to
                 establish the consummation of the transaction contemplated
                 hereunder and compliance with the conditions of this Agreement.

          (vi)   Surepay Addendum. A new Addendum, in form and content
                 satisfaction to the Bank, to Schedule A for Surepay Services
                 under the Cash Management Service Master Agreement dated as of
                 March 27, 1995, together with a documentation fee of $750.00,
                 which fee shall be deemed fully earned upon payment.

4.2  Conditions Precedent to All Advances: The obligation of the Bank to make
     each Advance and each other extension of credit to or on account of the
     Borrower (including the initial Advance and the first extension of credit)
     shall be subject to the further conditions precedent that, on the date of
     each Advance or each extension of credit and after the making of such
     Advance or extension of credit.

          (i)    Subsequent Approvals. The Bank shall have received such
                 supplemental approvals, opinions or documents as the Bank may
                 reasonably request.

          (ii)   Representations and Warranties.  The representations contained
                 in Section 5 and in any other document, instrument or
                 certificate delivered to the Bank hereunder are true, correct
                 and complete.

          (iii)  Event of Default.  No event has occurred and is continuing
                 which constitutes, or with the lapse of time or giving of
                 notice or both, would constitute an Event of Default.

          (iv)   Collateral. The security interest in the Collateral has been
                 duly authorized, created and perfected with first priority and
                 is in full force and effect.

The Borrower's acceptance of the proceeds of any loan, advance or extension of
credit or the Borrower's execution of any document or instrument evidencing or
creating any Obligation hereunder shall be deemed to constitute the Borrower's
representation and warranty that all of the above statements are true and
correct.
                                    SECTION

                                       5

                        REPRESENTATIONS AND WARRANTIES

     The Borrower hereby makes the following representations and warranties to
the Bank, which representations and warranties are continuing:

5.1  Status: The Borrower is a corporation duly organized and validly existing
     under the laws of the state of California and is properly licensed and is
     qualified to do business and in good standing in, and, where necessary to
     maintain the Borrower's rights and privileges, has complied with the
     fictitious name statute of every jurisdiction in which the Borrower is
     doing business.

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<PAGE>

5.2  Authoriy: The execution, delivery and performance by the Borrower of this
     Agreement and any instrument, document or agreement required hereunder have
     been duly authorized and do not and will not: (i) violate any provision of
     any law, rule, regulation, order, writ, judgment, injunction, decree,
     determination or award presently in effect having application to the
     Borrower; (ii) result in a breach of or constitute a default under any
     material indenture or loan or credit agreement or other material agreement,
     lease or instrument to which the Borrower is a party or by which it or its
     properties may be bound or affected; or (iii) require any consent or
     approval of its stockholders or violate any provision of its articles of
     incorporation or by-laws.

5.3  Legal Effect: This Agreement constitutes, and any instrument, document or
     agreement required hereunder when delivered hereunder will constitute,
     legal, valid and binding obligations of the Borrower enforceable against
     the Borrower in accordance with their respective terms.

5.4  Fictitious Trade Styles: There are no fictitious trade styles used by the
     Borrower in connection with its business operations. The Borrower shall
     notify the Bank not less than 30 days prior to effecting any change in the
     matters described herein or prior to using any other fictitious trade style
     at any future date, indicating the trade style and state(s) of its use.

5.5  Financial Statements: All financial statements, information and other data
     which may have been or which may hereafter be submitted by the Borrower to
     the Bank are true, accurate and correct and have been or will be prepared
     in accordance with generally accepted accounting principles consistently
     applied and accurately represent the financial condition or, as applicable,
     the other information disclosed therein. Since the most recent submission
     of such financial information or data to the Bank, the Borrower represents
     and warrants that no material adverse change in the Borrower's financial
     condition or operations has occurred which has not been fully disclosed to
     the Bank in writing.

5.6  Litigation: Except as have been disclosed to the Bank in writing, there are
     no actions, suits or proceedings pending or, to the knowledge of the
     Borrower, threatened against or affecting the Borrower or the Borrower's
     properties before any court or administrative agency which, if determined
     adversely to the Borrower, would have a material adverse effect on the
     Borrower's financial condition or operations or on the Collateral.

5.7  Title to Assets: The Borrower has good and marketable title to all of its
     assets (including, but not limited to, the Collateral) and the same are not
     subject to any security interest, encumbrance, lien or claim of any third
     person except for Permitted Liens.

5.8  ERISA: If the Borrower has a pension, profit sharing or retirement plan
     subject to ERISA, such plan has been and will continue to be funded in
     accordance with its terms and otherwise complies with and continues to
     comply with the requirements of ERISA.

5.9  Taxes: The Borrower has filed all tax returns required to be filed and paid
     all taxes shown thereon to be due, including interest and penalties, other
     than such taxes which are currently payable without penalty or interest or
     those which are being duly contested in good faith.

5.10 Margin Stock. The proceeds of any loan or advance hereunder will not be
     used to purchase or carry margin stock as such term is defined under
     Regulation U of the Board of Governors of the Federal Reserve System.

5.11 Environmental Compliance. The operations of the Borrower comply, and
     during the term of this Agreement will at all times comply, in all respects
     with all Environmental Laws; the Borrower has obtained all licenses,
     permits, authorizations and registrations required under any Environmental
     Law ("Environmental Permits") and necessary for its ordinary course
           ---------------------
     operations, all such Environmental Permits are in good standing, and the
     Borrower is in compliance with all material terms and conditions of such
     Environmental Permits; neither the Borrower nor any of its present

                                     -10-
<PAGE>

      property or operations is subject to any outstanding written order from or
      agreement with any governmental authority nor subject to any judicial or
      docketed administrative proceeding, respecting any Environmental Law,
      Environmental Claim or Hazardous Material; there are no Hazardous
      Materials or other conditions or circumstances existing, or arising from
      operations prior to the date of this Agreement, with respect to any
      property of the Borrower that would reasonably be expected to give rise to
      Environmental Claims; provided, however, that with respect to property
                            ---------
      leased from an unrelated third party, the foregoing representation is made
      to the best knowledge of the Borrower. In addition, (i) the Borrower does
      not have any underground storage tanks that are not properly registered or
      permitted under applicable Environmental Laws, or that are leaking or
      disposing of Hazardous Materials off-site, and (ii) the Borrower has
      notified all of their employees of the existence, if any, of any health
      hazard arising from the conditions of their employment and have met all
      notification requirements under Title III of CERCLA and all other
      Environmental Laws.

5.12  Inventory:

          (i)    The Borrower keeps correct and accurate records. (itemizing and
                 describing the kind, type, quality and quantity of inventory,
                 the Borrower's cost therefor and selling price thereof, and the
                 daily withdrawals therefrom and additions thereto).

          (ii)   All inventory is of good and merchantable quality, free from
                 defects.

          (iii)  The inventory is not stored with a bailee, warehouseman or
                 similar party.

          (iv)   The Borrower is not a "retail merchant" as defined in the
                 California Uniform Commercial Code.

                                    SECTION

                                       6

                                   COVENANTS

The Borrower covenants and agrees that, during the term of this Agreement, and
so long thereafter as the Borrower is indebted to the Bank under this Agreement,
the Borrower will, unless the Bank shall otherwise consent in writing:

6.1  Reporting and Certification Requirements: Deliver or cause to be delivered
     to the Bank in form and detail satisfactory to the Bank:

          (i)    Not later than 120 days after the end of each of the Borrower's
                 fiscal years, a copy of the annual audited consolidated
                 financial report of the Borrower for such year, prepared by a
                 firm of certified public accountants acceptable to Bank and
                 accompanied by an unqualified opinion of such firm.

          (ii)   Not later than 45 days after the end of each quarter, the
                 Borrower's financial statement as of the end of such period.

          (iii)  Concurrently with the delivery of the financial reports
                 required hereunder, a compliance certificate stating that the
                 Borrower is in compliance with all covenants contained herein
                 and that no Event of Default or potential Event of Default has
                 occurred or is continuing, and certified to by the chief
                 financial officer of the Borrower.

          (iv)   Not later than 30 days after the end of each quarter, a report
                 indicating the Average Subscriber Payroll listing Subscriber's
                 names and average payroll per

                                     -11-
<PAGE>

                 Subscriber.

          (v)    Not later than 30 days after the end of each fiscal quarter of
                 the Borrower, a PAP report executed by the Borrower and
                 detailing funds on deposit from its Subscribers.

          (vi)   Promptly upon the Bank's request, such other information
                 pertaining to the Borrower, the Collateral or any guarantor
                 hereunder as the Bank may reasonably request, including
                 evidence of Borrower's payment of payroll taxes.

6.2  Financial Condition: The Borrower promises and agrees, during the term of
     this Agreement and until payment in full of all of the Borrower's
     Obligations, the Borrower will maintain at all times:

          (i)    A minimum Effective Tangible Net Worth of at least $5,000,000.

          (ii)   A ratio of Current Assets to Current Liabilities of not less
                 than .90 to 1 through December 31, 2000 and 1.0 to 1
                 thereafter.

          (iii)  A ratio of Cash Flow to the current portion of long term Debt
                 plus interest expense of not less than 1.50 to 1, measured at
                 each fiscal year-end.

          (iv)   A ratio of Debt to EBITDA of not more than 1.5 to 1 at the end
                 of each fiscal quarter, with EBITDA based upon the immediately
                 preceding three fiscal quarters and the current quarter just
                 ended.

6.3  Preservation of Existence; Compliance with Applicable Laws: Maintain and
     preserve its existence and all rights and privileges now enjoyed; and
     conduct its business and operations in accordance with all applicable laws,
     rules and regulations.

6.4  Maintenance of Insurance: Keep and maintain the Collateral insured for not
     less than its full replacement value against all risks of loss and damage
     and maintain insurance in such amounts and covering such risks as is
     usually carried by companies engaged in similar businesses and owning
     similar properties in the same general areas in which the Borrower operates
     and maintain such other insurance and coverages as may be required by the
     Bank. All such insurance shall be in form and amount and with companies
     satisfactory to the Bank.

     With respect to insurance covering properties in which the Bank maintains a
     security interest or lien, such insurance shall name the Bank as loss payee
     pursuant to a loss payable endorsement satisfactory to the Bank and shall
     not be altered or canceled except upon 10 days' prior written notice to the
     Bank. Upon the Bank's request, the Borrower shall furnish the Bank with the
     original policy or binder of all such insurance.

6.5  Maintenance of Collateral and Other Properties: Except for Permitted Liens,
     keep and maintain the Collateral free and clear of all levies, liens,
     encumbrances and security interests (including, but not limited to, any
     lien of attachment, judgment or execution) and defend the Collateral
     against any such levy, lien, encumbrance or security interest; comply with
     all laws, statutes and regulations pertaining to the Collateral and its use
     and operation; execute, file and record such statements, notices and
     agreements, take such actions and obtain such certificates and other
     documents as necessary to perfect, evidence and continue the Bank's
     security interest in the Collateral and the priority thereof; maintain
     accurate and complete records of the Collateral which show all sales,
     claims and allowances; and property care for, house, store and maintain the
     Collateral in good condition, free of misuse, abuse and deterioration,
     other than normal wear and tear. The Borrower shall also maintain and
     preserve all its properties in good working order and condition in
     accordance with the general practice of other businesses of similar
     character and size, ordinary wear and tear excepted.

                                     -12-
<PAGE>

6.6  Payment of Obligations and Taxes: Make timely payment of all assessments
     and taxes and all of its liabilities and obligations including, but not
     limited to, trade payables, unless the same are being contested in good
     faith by appropriate proceedings with the appropriate court or regulatory
     agency. For purposes hereof, the Borrower's issuance of a check, draft or
     similar instrument without delivery to the intended payee shall not
     constitute payment. Borrower agrees to pay all payroll taxes as they become
     due and upon the request of Bank, to provide Bank with evidence of such
     payments.

6.7  Inspection Rights and Accounting Records: The Borrower will maintain
     adequate books and records in accordance with generally accepted accounting
     principles consistently applied and in a manner otherwise acceptable to
     Bank, and, at any reasonable time and from time to time, permit the Bank or
     any representative thereof to examine and make copies of the records and
     visit the properties of the Borrower and discuss the business and
     operations of the Borrower with any employee or representative thereof. If
     the Borrower shall maintain any records (including, but not limited to,
     computer generated records or computer programs for the generation of such
     records) in the possession of a third party, the Borrower hereby agrees to
     notify such third party to permit the Bank free access to such records at
     all reasonable times and to provide the Bank with copies of any records
     which it may request, all at the Borrower's expense, the amount of which
     shall be payable immediately upon demand.

6.8  Redemption or Repurchase of Stock: Not redeem or repurchase any class of
     the Borrower's stock now or hereafter outstanding.

6.9  Additional Indebtedness: Not, after the date hereof, create, incur or
     assume, directly or indirectly, any additional Indebtedness other than (i)
     Indebtedness owed or to be owed to the Bank or (ii) Indebtedness to trade
     creditors incurred in the Ordinary Course of Business.

6.10 Liens and Encumbrances: Not create, assume or permit to exist any security
     interest, encumbrance, mortgage, dead of trust, or other lien (including,
     but not limited to, a lien of attachment, judgment or execution) affecting
     any of the Borrower's properties, or execute or allow to be filed any
     financing statement or continuation thereof affecting any of such
     properties except for Permitted Liens or as otherwise provided in this
     Agreement.

6.11 Transfer Assets: Not, after the date hereof, sell, contract for sale,
     convey, transfer, assign, lease or sublet, any of its assets (including,
     but not limited to, the Collateral) except in the Ordinary Course of
     Business and, then, only for full, fair and reasonable consideration.

6.12 Change in Nature of Business: Not make any material change in its
     financial structure or the nature of its business as existing or conducted
     as of the date hereof.

6.13 Compensation of Employees: Compensate its employees for services rendered
     at an hourly rate at least equal to the minimum hourly rate prescribed by
     any applicable federal or state law or regulation.

6.14 Notice: Give the Bank prompt written notice of any and all (i) Events of
     Default; (ii) litigation, arbitration or administrative proceedings to
     which the Borrower is a party and in which the claim or liability exceeds
     $50,000.00 or which affects the Collateral; (iii) other matters which have
     resulted in, or might result in a material adverse change in the Collateral
     or the financial condition or business operations of the Borrower, and (iv)
     any enforcement, cleanup, removal or other governmental or regulatory
     actions instituted, completed or threatened against the Borrower or any of
     its properties.

6.15 Environmental Compliance: The Borrower shall conduct its operations and
     keep and maintain all of its property in compliance with all Environmental
     Laws and, upon the written request of the Bank,the Borrower shall submit to
     the Bank, at the Borrower's sole cost and expense, at reasonable

                                     -13-
<PAGE>

      intervals, a report providing the status of any environmental, health or
      safety compliance, hazard or liability.

6.16  Inventory:

          (i)    Except as provided herein below, the Borrower's inventory
                 shall, at all times, be in the Borrower's physical possession,
                 shall not be held by others on consignment, sale on approval,
                 or sale or return and shall be kept only at: 101 Callan Avenue,
                 3rd Floor, San Leandro, CA 94577 and
                 ______________________________________________________________.

          (ii)   The Borrower shall keep correct and accurate records.

          (iii)  All inventory shall be of good and merchantable quality, free
                 from defects.

          (iv)   The inventory shall not at any time or times hereafter be
                 stored with a bailee, warehouseman or similar party without the
                 Bank's prior written consent and, in such event, the Borrower
                 will concurrently therewith cause any such bailee, warehouseman
                 or similar party to issue and deliver to the Bank, in form
                 acceptable to the Bank, warehouse receipts in the Bank's name
                 evidencing the storage of inventory.

          (v)    At any reasonable time and from time to time, allow Bank to
                 have the right, upon demand, to inspect and examine inventory
                 and to check and test the same as to quality, quantity, value
                 and condition and the Borrower agrees to reimburse the Bank for
                 the Bank's reasonable costs and expenses in so doing.

6.17  Location and Maintenance of Equipment.:

          (i)    The Equipment shall at all times be in the Borrower's physical
                 possession, shall not be held for sale or lease, and shall be
                 kept only at the following location(s): 101 Callan Avenue, 3rd
                 Floor, San Leandro, CA 94577 and
                 ______________________________________________________________.

          (ii)   The Borrower shall not secrete, abandon or remove, or permit
                 the removal of, the Equipment, or any part thereof, from the
                 location(s) shown above or remove or permit to be removed any
                 accessories now or hereafter placed upon, the Equipment.

          (iii)  Upon the Bank's demand, the Borrower shall immediately provide
                 the Bank with a complete and accurate description of the
                 Equipment including, as applicable, the make, model,
                 identification number and serial number of each item of
                 Equipment. In addition, the Borrower shall immediately notify
                 the Bank of the acquisition of any new or additional Equipment
                 or the replacement of any existing Equipment and shall supply
                 the Bank with a complete description of any such additional or
                 replacement Equipment.

          (iv)   The Borrower shall, at the Borrower's sole cost and expense,
                 keep and maintain the Equipment in a good state of repair and
                 shall not destroy, misuse, abuse, illegally use or be negligent
                 in the care of the Equipment or any part thereof. The Borrower
                 shall not remove, destroy, obliterate, change, cover, paint,
                 deface or alter the name plates, serial numbers, labels or
                 other distinguishing numbers or identification marks placed
                 upon the Equipment or any part thereof by or on behalf of the
                 manufacturer, any dealer or rebuilder thereof, or the Bank. The
                 Borrower shall not be released from any liability to the Bank
                 hereunder because of any injury

                                     -14-
<PAGE>

                 to or loss or destruction of the Equipment. The Borrower shall
                 allow the Bank and its representatives free access to and the
                 right to inspect the Equipment at all times and shall comply
                 with the terms and conditions of any leases covering the real
                 property on which the Equipment is located and any orders,
                 ordinances, laws, regulations or rules of any federal, state or
                 municipal agency or authority having jurisdiction of such real
                 property or the conduct of the business of the persons having
                 control or possession of the Equipment.

          (v)    The Equipment is not now and shall not at any time hereafter be
                 so affixed to the real property on which it is located as to
                 become a fixture or a part thereof. The Equipment is now and
                 shall at all times hereafter be and remain personal property of
                 the Borrower.

6.18 Y2K Compliance. The Borrower shall perform all acts reasonably necessary
     to ensure that the Borrower becomes Year 2000 Compliant in a timely manner.
     Such acts shall include performing a review and assessment of all of
     Borrower's systems and adopting a plan with a budget for the remediation
     and testing of such systems. For the purposes hereof, "Year 2000 Compliant"
     shall mean that all software, hardware, firmware, equipment, goods or
     systems, utilized by and material to the business operations or financial
     condition of the Borrower, will properly perform date sensitive functions
     before, during and after the Year 2000. Borrower shall use its best efforts
     to remain informed as to whether its major customers, suppliers and vendors
     are Year 2000 Compliant. Borrower shall, upon the Bank's request, provide
     Bank with such certifications or other evidence of Borrower's compliance
     with the terms hereof as Bank may from time to time require.

                                    SECTION

                                       7

                               EVENTS OF DEFAULT

     Any one or more of the following described events shall constitute an event
     of default (an "Event of Default") under this Agreement:

7.1  Non-Payment: Any Borrower shall fail to pay the principal amount of any
     Obligations when due or interest on the Obligations within 5 days of when
     due.

7.2  Performance Under This Agreement: The Borrower shall fail in any material
     respect to perform or observe any term, covenant or agreement contained in
     this Agreement or in any document, instrument or agreement relating to this
     Agreement or any other document or agreement executed by Borrower with or
     in favor of Bank and any such failure shall continue unremedied for more
     than 30 days after written notice from the Bank to the Borrower of the
     existence and character of such Event of Default.

7.3  Representations and Warranties; Financial Statements: Any representation or
     warranty made by the Borrower under or in connection with this Agreement or
     any financial statement given by the Borrower or any guarantor shall prove
     to have been incorrect in any material respect when made or given or when
     deemed to have been made or given.

7.4  Other Agreements: If there is a default under any other agreement with Bank
     or under an agreement to which Borrower is a party with Bank or with a
     third party or parties resulting in a right by the Bank or by such third
     party or parties, whether or not exercised, to accelerate the maturity of
     any Indebtedness.

                                     -15-
<PAGE>

7.5  Insolvency: The Borrower or any guarantor shall: (i) become insolvent or be
     unable to pay its debts as they mature; (ii) make an assignment for the
     benefit of creditors or to an agent authorized to liquidate any substantial
     amount of its properties and assets; (iii) file a voluntary petition in
     bankruptcy or seeking reorganization or to effect a plan or other
     arrangement with creditors; (iv) file an answer admitting the material
     allegations of an involuntary petition relating to bankruptcy or
     reorganization or join in any such petition; (v) become or be adjudicated a
     bankrupt; (vi) apply for or consent to the appointment of, or consent that
     an order be made, appointing any receiver, custodian or trustee, for itself
     or any of its properties, assets or businesses; or (vii) in an involuntary
     proceeding, any receiver, custodian or trustee shall have been appointed
     for all or substantial part of the Borrower's or guarantor's properties,
     assets or businesses and shall not be discharged within 30 days after the
     date of such appointment.

7.6  Execution: Any writ of execution or attachment or any judgment lien shall
     be issued against any property of the Borrower and shall not be discharged
     or bonded against or released within 30 days after the issuance or
     attachment of such writ or lien.

7.7  Suspension: The Borrower shall voluntarily suspend the transaction of
     business or allow to be suspended, terminated, revoked or expired any
     permit, license or approval of any governmental body necessary to conduct
     the Borrower's business as now conducted.

7.8  Material Adverse Change: If there occurs a material adverse change in the
     Borrower's business or financial condition, or if there is a material
     impairment of the prospect of repayment of any portion of the Obligations
     or there is a material impairment of the value or priority of the Bank's
     security interest in the Collateral.

7.9  Change in Ownership: There shall occur a sale, transfer, disposition or
     encumbrance (whether voluntary or involuntary), or an agreement shall be
     entered into to do so, with respect to more than 10% of the issued and
     outstanding capital stock of the Borrower.

7.10 Impairment of Collateral. There shall occur any injury or damage to all or
     any part of the Collateral or all or any part of the Collateral shall be
     lost, stolen or destroyed.

                                    SECTION

                                       8

                              REMEDIES ON DEFAULT

Upon the occurrence of any Event of Default, the Bank may, at its sole and
absolute election, without demand and only upon such notice as may be required
by law:

8.1  Acceleration: Declare any or all of the Borrower's indebtedness owing to
     the Bank, whether under this Agreement or any other document, instrument or
     agreement, immediately due and payable, whether or not otherwise due and
     payable.

8.2  Cease Extending Credit: Cease making Advances or otherwise extending credit
     to or for the account of the Borrower under this Agreement or under any
     other agreement now existing or hereafter entered into between the Borrower
     and the Bank.

8.3  Termination: Terminate this Agreement as to any future obligation of the
     Bank without affecting the Borrower's obligations to the Bank or the Bank's
     rights and remedies under this Agreement or under any other document,
     instrument or agreement.

8.4  Protection of Security Interest: Make such payments and do such acts as the
     Bank, in its sole judgment, considers necessary and reasonable to protect
     its security interest or lien in the

                                     -16-
<PAGE>

     Collateral. The Borrower hereby irrevocably authorizes the Bank to pay,
     purchase, contest or compromise any encumbrance, lien or claim which the
     Bank, in its sole judgment, deems to be prior or superior to its security
     interest. Further, the Borrower hereby agrees to pay to the Bank, upon
     demand therefor, all expenses and expenditures (including attorneys' fees)
     incurred in connection with the foregoing.

8.5  Foreclosure: Enforce any security interest or lien given or provided for
     under this Agreement or under any security agreement, mortgage, deed of
     trust or other document, in such manner and such order, as to all or any
     part of the properties subject to such security interest or lien, as the
     Bank, in its sole judgment, deems to be necessary or appropriate and the
     Borrower hereby waives any and all rights, obligations or defenses now or
     hereafter established by law relating to the foregoing. In the enforcement
     of its security interest or lien, the Bank is authorized to enter upon the
     premises where any Collateral is located and take possession of the
     Collateral or any part thereof, together with the Borrower's records
     pertaining thereto, or the Bank may require the Borrower to assemble the
     Collateral and records pertaining thereto and make such Collateral and
     records available to the Bank at a place designated by the Bank. The Bank
     may sell the Collateral or any portions thereof, together with all
     additions, accessions and accessories thereto, giving only such notices and
     following only such procedures as are required by law, at either a public
     or private sale, or both, with or without having the Collateral present at
     the time of the sale, which sale shall be on such terms and conditions and
     conducted in such manner as the Bank determines in its sole judgment to be
     commercially reasonable. Any deficiency which exists after the disposition
     or liquidation of the Collateral shall be a continuing liability of the
     Borrower to the Bank and shall be immediately paid by the Borrower to the
     Bank.

8.6  Non-Exclusivity of Remedies: Exercise one or more of the Bank's rights set
     forth herein or seek such other rights or pursue such other remedies as may
     be provided by law, in equity or in any other agreement now existing or
     hereafter entered into between the Borrower and the Bank, or otherwise.

8.7  Application of Proceeds: All amounts received by the Bank as proceeds from
     the disposition or liquidation of the Collateral shall be applied to the
     Borrower's indebtedness to the Bank as follows: first, to the costs and
     expenses of collection, enforcement, protection and preservation of the
     Bank's lien in the Collateral, including court costs and reasonable
     attorneys' fees, whether or not suit is commenced by the Bank; next, to
     those costs and expenses incurred by the Bank in protecting, preserving,
     enforcing, collecting, liquidating, selling or disposing of the Collateral;
     next, to the payment of accrued and unpaid interest on all of the
     Obligations; next, to the payment of the outstanding principal balance of
     the Obligations; and last, to the payment of any other indebtedness owed by
     the Borrower to the Bank.

                                    SECTION

                                       9

                                 MISCELLANEOUS

9.1  Amounts Payable on Demand: If the Borrower shall fail to pay on demand any
     amount so payable under this Agreement, the Bank may, at its option and
     without any obligation to do so and without waiving any default occasioned
     by the Borrower having so failed to pay such amount, create an Advance
     under this Agreement in an amount equal to the amount so payable, which
     Advance shall thereafter bear interest as provided hereunder.

9.2  Default Interest Rate: If an Event of Default, or an event which, with
     notice or passage of time could become an Event of Default, has occurred or
     is continuing, the Borrower shall pay to the Bank interest on any
     Indebtedness or amount payable under this Agreement at a rate which is 3%
     in excess of the rate or rates then in effect under this Agreement.

                                     -17-
<PAGE>

9.3  Reliance and Further Assurances: Each warranty, representation, covenant,
     obligation and agreement contained in this Agreement shall be conclusively
     presumed to have been relied upon by the Bank regardless of any
     investigation made or information possessed by the Bank and shall be
     cumulative and in addition to any other warranties, representations,
     covenants and agreements which the Borrower now or hereafter shall give, or
     cause to be given, to the Bank. Borrower agrees to execute all documents
     and instruments and to perform such acts as the Bank may reasonably deem
     necessary to confirm and secure to the Bank all rights and remedies
     conferred upon the Bank by this agreement and all other documents related
     thereto.

9.4  Attorneys' Fees: Borrower shall pay to the Bank all costs and expenses,
     including but not limited to reasonable attorneys fees, incurred by Bank in
     connection with the administration, enforcement, including any bankruptcy,
     appeal or the enforcement of any judgment or any refinancing or
     restructuring of this Agreement or any document, instrument or agreement
     executed with respect to, evidencing or securing the indebtedness
     hereunder.

9.5  Notices: All notices, payments, requests, information and demands which
     either party hereto may desire, or may be required to give or make to the
     other party hereto, shall be given or made to such party by hand delivery
     or through deposit in the United States mail, postage prepaid, or by
     facsimile delivery, or to such other address as may be specified from time
     to time in writing by either party to the other.

     To the Borrower:                            To the Bank:

     TRINET EMPLOYER GROUP, INC.                 SANWA BANK CALIFORNIA
     101 Callan Avenue, 3rd Floor                Hayward Office (BBC)
     San Leandro, CA 94577                       24299 Southland Drive
     Attn: Doug Devlin                           Hayward, CA 94545
                                                 Attn:  Elizabeth Saffo
     FAX: (510) 352-6480                                Assistant Vice President
                                                 FAX:   (510) 293-9365

9.6  Waiver: Neither the failure nor delay by the Bank in exercising any right
     hereunder or under any document, instrument or agreement mentioned herein
     shall operate as a waiver thereof, nor shall any single or partial exercise
     of any right hereunder or under any other document, instrument or agreement
     mentioned herein preclude other or further exercise thereof or the exercise
     of any other right; nor shall any waiver of any right or default hereunder,
     or under any other document, instrument or agreement mentioned herein,
     constitute a waiver of any other right or default or constitute a waiver of
     any other default of the same or any other term or provision.

9.7  Conflicting Provisions: To the extent the provisions contained in this
     Agreement are inconsistent with those contained in any other document,
     instrument or agreement executed pursuant hereto, the terms and provisions
     contained herein shall control. Otherwise, such provisions shall be
     considered cumulative.

9.8  Binding Effect; Assignment: This Agreement shall be binding upon and inure
     to the benefit of the Borrower and the Bank and their respective successors
     and assigns, except that the Borrower shall not have the right to assign
     its rights hereunder or any interest herein without the prior written
     consent of the Bank. The Bank may sell, assign or grant participation in
     all or any portion of its rights and benefits hereunder. The Borrower
     agrees that, in connection with any such sale, grant or assignment, the
     Bank may deliver to the prospective buyer, participant or assignee
     financial statements and other relevant information relating to the
     Borrower and any guarantor.

9.9  Jurisdiction: This Agreement, any notes issued hereunder, the rights of the
     parties hereunder to and concerning the Collateral, and any documents,
     instruments or agreements mentioned or referred to herein shall be governed
     by and construed according to the laws of the State of

                                     -18-
<PAGE>

      California without regard to conflict of law principles, to the
      jurisdiction of whose courts the parties hereby submit.

9.10  Waiver of Jury Trial: THE BORROWER AND THE BANK EACH WAIVE THEIR
      RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED
      UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT.  THE OTHER LOAN
      DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY
      ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE
      PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO
      CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE BORROWER AND THE BANK EACH
      AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT
      TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER
      AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY
      OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER
      PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
      ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY
      PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
      AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND
      THE OTHER LOAN DOCUMENTS.

9.11  Counterparts: This Agreement may be executed in any number of counterparts
      and all such counterparts taken together shall be deemed to constitute one
      and the same instrument.

9.12  Headings: The headings herein set forth are solely for the purpose of
      identification and have no legal significance.

9.13  Entire Agreement and Amendments: This Agreement and all documents,
      instruments and agreements mentioned herein constitute the entire and
      complete understanding of the parties with respect to the transactions
      contemplated hereunder. All previous conversations, memoranda and writings
      between the parties pertaining to the transactions contemplated hereunder
      not incorporated or referenced in this Agreement or in such documents,
      instruments and agreements are superseded hereby. This Agreement may be
      amended only by an instrument in writing signed by the Borrower and the
      Bank.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the date first hereinabove written.

BANK:                                            BORROWER:

SANWA BANK CALIFORNIA                            TRINET EMPLOYER GROUP, INC.

BY:  /s/ ELIZABETH SAFFO                         BY:  /s/ MARTIN BABINEC
     -----------------------------                    --------------------------
Name: Elizabeth Saffo, Assistant                 Name: Martin Babinec, President
      Vice President
                                                 BY: /s/ DOUGLAS DEVLIN
                                                     ---------------------------
                                                 Name: Douglas Devlin, Chief
                                                       Financial Officer

                                     -19-
<PAGE>

                                 Exhibit 2.1.1
            Schedule of Purposes and Maximum Loan Amounts and Costs

-----------------------------------------------------------------------------
        PROJECT NAME                             BUDGETED PROJECT COSTS
-----------------------------------------------------------------------------
          Pay to Bill                                  $  216,000
-----------------------------------------------------------------------------
          Canadian PTB                                 $  247,200
-----------------------------------------------------------------------------
          Reno Facility                                $  600,000
-----------------------------------------------------------------------------
          Web Deployment                               $1,453,800
-----------------------------------------------------------------------------
       Back Office Systems                             $  981,000
-----------------------------------------------------------------------------
    Additional Web Self-Service                        $  531,400
-----------------------------------------------------------------------------
    Additional Infrastructure                          $  511,000
-----------------------------------------------------------------------------
 Supporting Capital Expenditures                       $1,338,646
-----------------------------------------------------------------------------
            Total                                      $5,879,046
-----------------------------------------------------------------------------

Notwithstanding anything contrary contained in the credit agreement dated
September 21, 1999 Sanwa Bank is obligated to advance funds in an amount not to
exceed 80% of individual budgeted project costs, as designated in the table
above. The Bank, in its sole discretion, may advance funds in an amount not to
exceed 100% of individual budgeted project costs. Under no circumstances shall
the Bank's aggregate funding exceed $4,000,000.00.

                                     -20-
<PAGE>

                   CERTIFIED CORPORATE RESOLUTION TO BORROW

     WHEREAS, TRINET EMPLOYER GROUP, INC. (the "Corporation") has made
application to SANWA BANK CALIFORNIA (the "Bank") for credit accommodations
which may consist of but shall in no way be limited to the following: the
renewal, continuation or extension of an existing obligation; the extension of a
new loan, line of credit or commitment; the issuance of letters of credit or
banker's acceptances; or the purchase or sale through Bank of foreign
currencies.

     RESOLVED, that: any two, acting together, of the following officers: MARTIN
BABINEC, as the PRESIDENT of the Corporation, or DOUGLAS DEVLIN, as the CHIEF
FINANCIAL OFFICER of the Corporation, are authorized, in the name of and on
behalf of the Corporation to:

     (a)  Borrow money from the Bank in such amounts and upon such terms and
          conditions as are agreed upon by the officers of the Corporation and
          the Bank; and execute and deliver or endorse such evidences of
          indebtedness or renewals thereof or agreements therefor as may be
          required by the Bank, all in such form and content as the officers of
          the Corporation executing such documents shall approve (which approval
          shall be evidenced by the execution and delivery of such documents);
          provided, however, that the maximum amount of such indebtedness shall
          not exceed the principal sum of $30,000,000.00 exclusive of any
          interest, fees, attorneys' fees and other costs and expenses related
          to the indebtedness.

     (b)  Execute such evidences of indebtedness, agreements, security
          instruments and other documents and to take such other actions as are
          herein authorized.

     (c)  Sell to or discount or re-discount with the Bank any and all
          negotiable instruments, contracts or instruments or evidences of
          indebtedness at any time held by the Corporation; and endorse,
          transfer and deliver the same, together with guaranties of payment or
          repurchase thereof, to the Bank (for which the Bank is hereby
          authorized and directed to pay the proceeds of such sale, discount or
          re-discount as directed by such endorsement without inquiring into the
          circumstances of its issue or endorsement or the disposition of such
          proceeds).

     (d)  Withdraw, receive and execute receipts for deposits and withdrawals on
          accounts of the Corporation maintained with the Bank.

     (e)  Grant security interests and liens in any real, personal or other
          property belonging to or under the control of the Corporation as
          security for any indebtedness of the Corporation to the Bank; and
          execute and deliver to the Bank any and all security agreements,
          pledges, mortgages, deeds of trust and other security instruments and
          any other documents to effectuate the grant of such security interests
          and liens, which security instruments and other documents shall be in
          such form and content as the officers of the Corporation executing
          such security instruments and other documents shall approve and which
          approval shall be evidenced by the execution and delivery of such
          security instruments and other documents.

     (f)  Apply for letters of credit or seek the issuance of banker's
          acceptances under which the Corporation shall be liable to the Bank
          for repayment.

     (g)  Purchase and sell foreign currencies, on behalf of the Corporation,
          whether for immediate or future delivery, in such amounts and upon
          such terms and conditions as the officer(s) authorized herein may deem
          appropriate, and give any instructions for transfers or deposits of
          monies by check, drafts, cable, letter or otherwise for any purpose
          incidental to the foregoing, and authorize or direct charges to the
          depository account or accounts of the

                                      -1-
<PAGE>

          Corporation for the cost of any foreign currencies so purchased
          through the Bank.

     (h)  To designate in writing to the Bank in accordance with the terms of
          any agreement or other document executed by the above-named
          individuals one or more individuals who shall have the authority to as
          provided herein, to:

          (1)  request advances under lines of credit extended by the Bank to
               the Corporation;

          (2)  apply for letters of credit or seek the issuance of bankers
               acceptances under which the Corporation shall be liable to the
               Bank for repayment,

          (3)  make deposits and receive and execute receipts for deposits on
               accounts of the Corporation maintained with the Bank;

          (4)  make withdrawals and receive and execute receipts for withdrawals
               on account of the Corporation maintained with the Bank;

          (5)  purchase and sell foreign currencies.

     (i)  Transact any other business with the Bank incidental to the powers
          hereinabove stated.

     RESOLVED FURTHER, that all such evidences of indebtedness, agreements,
security instruments and other documents executed in the name of and on behalf
of the Corporation and all such actions taken on behalf of the Corporation in
connection with the matters described herein are hereby ratified and approved.

     RESOLVED FURTHER, that the Bank is authorized to act upon these resolutions
until written notice of their revocation is delivered to the Bank.

     RESOLVED FURTHER, that any resolution set forth herein is in addition to
and does not supersede any resolutions previously given by the Corporation to
the Bank.

     RESOLVED FURTHER, that the Secretary of the Corporation be, and hereby is,
authorized and directed to prepare, execute and deliver to the Bank a certified
copy of the foregoing resolutions.

     I do hereby certify that I am ____________________, the Secretary of TRINET
EMPLOYER GROUP, INC., a California corporation, and I do hereby further certify
that the foregoing is a true copy of the resolutions of the Board of Directors
of the Corporation adopted and approved by unanimous written consent.

     I hereby further certify that such resolutions are presently in full force
and effect and have not been amended or revoked. I do further certify that the
following persons have been duly elected and qualified as and, this day are,
officers of the Corporation, holding their respective offices appearing below
their names, and that the signatures appearing opposite their names are the
genuine signatures of such persons.

NAME OF OFFICER: MARTIN BABINEC             /s/ MARTIN BABINEC
                                            ------------------------------------
                                                      (SIGNATURE)
TITLE: PRESIDENT

NAME OF OFFICER: DOUGLAS DEVLIN             /s/ DOUGLAS DEVLIN
                                            ------------------------------------
                                                     (SIGNATURE)
TITLE: CHIEF FINANCIAL OFFICER

                                      -2-
<PAGE>

IN WITNESS WHEREOF, this document is executed as of the 21 day of September,
NAME OF CORPORATION:    TRINET EMPLOYER GROUP, INC.

                                       BY:  /s/ DOUGLAS P. DEVLIN
                                            ------------------------------------
                                      Name: Douglas P. Devlin, Secretary

                                      -3-
<PAGE>

[SANWA BANK LOGO]

                        TRINET: Construction-Draw Sheet
<TABLE>
<CAPTION>
          Owner/Project:  Employer Group Inc.                             Draw #:                        Date:
------------------------------------------------------------------------------------------------------------------------------------
                                C             D               E             F               G               H              I
------------------------------------------------------------------------------------------------------------------------------------
          Description        Original       Previous       Previously      This          Borrower's     Net Request    Total Line
                              Budget        Request        Disbursed      Request          Equity       This  Draw     Draw to Date
------------------------------------------------------------------------------------------------------------------------------------
<S>                          <C>            <C>            <C>            <C>            <C>            <C>            <C>

------------------------------------------------------------------------------------------------------------------------------------
Project Name:                                               D10*.80                        F10*.20        F10-G10       E10+H10
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
Pay to Bill                   $216,000       $100,000       $ 80,000       $100,000       $20,000        $ 80,000       $  160,000
-----------------------------------------------------------------------------------------------------------------------------------
                                                            $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
Canadian PTB                  $200,000       $190,000       $152,000       $ 30,000       $ 6,000        $ 24,000       $  176,000
-----------------------------------------------------------------------------------------------------------------------------------
                                                            $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
Reno Facility                 $100,000       $ 80,000       $ 64,000       $ 50,000       $10,000        $ 40,000       $  104,000
-----------------------------------------------------------------------------------------------------------------------------------
                                                            $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
Web Deployment                $150,000       $    0         $    0         $187,500       $37,500        $150,000       $  150,000
-----------------------------------------------------------------------------------------------------------------------------------
                                                            $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
Back Office Systems                                         $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
                                                            $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
Additional Web Self-Service                                 $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
                                                            $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
Additional Infrastructure                                   $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
                                                            $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
Supporting Capex                                            $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
                                                            $    0                        $   0          $    0         $      0
-----------------------------------------------------------------------------------------------------------------------------------
                                                            $    0                        $   0                         $      0
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL COSTS                   $666,000       $370,000       $370,000       $367,500       $73,500        $294,000       $  664,000
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                        TRINET: Construction-Draw Sheet
<TABLE>
<CAPTION>
          Owner/Project:  Employer Group Inc.                             Draw #:                        Date:
------------------------------------------------------------------------------------------------------------------------------------
                                   J             K               L
------------------------------------------------------------------------------------------------------------------------------------
          Description           Budget           %            Maximum
                               To Date         Drawn          Funding
------------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>            <C>            <C>

------------------------------------------------------------------------------------------------------------------------------------
Project Name:                   D10+F10         110/J10     IF/(I10=C10*.8,"Y","N")
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
Pay to Bill                    $200,000         80.00%             N
-----------------------------------------------------------------------------------------------------------------------------------
                                   $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
Canadian PTB                   $220,000         80.00%             Y
-----------------------------------------------------------------------------------------------------------------------------------
                                   $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
Reno Facility                  $130,000         80.00%             Y
-----------------------------------------------------------------------------------------------------------------------------------
                                   $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
Web Deployment                 $187,500         80.00%             Y
-----------------------------------------------------------------------------------------------------------------------------------
                                   $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
Back Office Systems                $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
                                   $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
Additional Web Self-Service        $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
                                   $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
Additional Infrastructure          $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
                                   $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
Supporting Capex                   $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
                                   $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
                                   $0           #DIV/0!            Y
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL COSTS                     $737,500                           Y
------------------------------------------------------------------------------------------------------------------------------------
TOTAL LINE AVAILABILITY                                                                                                 $3,336,000
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

***SBCL funds advanced in an amount equal to 80% of individual actual project
   costs (assumes no project variance).
***Aggregate funding not to exceed $4,000,000.

***Prior to draw request-borrower to provide bank with:
1. Individual project receipts/invoices.
2. General breakdown of draw requests for hard costs and soft/labor costs.
3. Signed copy of construction-draw sheet.

                             ---------------------------
                             Trinet Employer Group, Inc.
<PAGE>

[LOGO OF SANWA BANK CALIFORNIA]
                        AUTHORIZATION TO CHARGE ACCOUNT

 Hayward BBC  #2278 Office                   September______, 1999
 ------------------
     You are hereby authorized and instructed to charge $INVOICE AMOUNT to
my/our (Checking/XXXXXX No. 0560-53600) account, (MONTHLY/XXXXXXXXXXXXX),
beginning October 31, 1999, and credit a like amount to the following indicated
account in the name of TriNet Employer Group, Inc. Checking Account____________
Savings Account No._____________ [_] [_] Loan No. 05224199670 ______________ [_]
                                                  -----------
at SLOC Office [X] In the event there are not sufficient funds in my/our account
   ----
on the day of the charge, you may at any time thereafter deduct in addition to
the amount indicated above, a late charge in accordance with the terms of the
above referenced loan.

     This authority is to remain in full force and effect until revoked by me in
writing, or, in case of credit on loan account, until the loan is paid in full.
Present contract calls for final payment on September_______ , 1999

CHARGE MUST ORIGINATE                  TRINET EMPLOYER GROUP, INC.
AT DEPOSITORY OFFICE                   _________________________________________
MIS-40 (03/90)                         Martin Babinec, President

                                       /s/ DOUGLAS DEVLIN
                                       -----------------------------------------
                                       Douglas Devlin, Chief Financial Officer
<PAGE>

TO:       Rochelle Dineen, Group Credit          DATE:     September 10, 1999
FROM:     Elizabeth Saffo, Hayward BBC

RE:  The Commercial Credit Agreement dated September 1999, executed by Trinet
Employer Group, Inc. ("Borrower") and Sanwa Bank California ("Bank").

Section 6 Covenants- 6.8 Redemption or Repurchase of Stock: prohibits the
                         ----------------------------------
redemption or repurchase of any class of the Borrower's stock now or hereafter
outstanding.

Martin Babinec and Doug Devlin are requesting permission to repurchase
"diminimus stock" from external company shareholders.  Pursuant to Section 6.8
of the Commercial Credit Agreement, the BBC is recommending that the Borrower be
permitted to repurchase company stock in an amount not to exceed $50,000 per
annum.

Recommended                                 Approved

/s/ELIZABETH SAFFO                          /s/ROCHELLE DINEEN  9/10/99
------------------                          ---------------------------------
Elizabeth Saffo, AVP                        Rochelle Dineen, VP
Hayward BBC                                 Group Credit, Northern Region
<PAGE>

[LOGO OF SANWA BANK CALIFORNIA]

                        LOAN DISBURSEMENT INSTRUCTIONS

                                Line of Credit

Date:_____________________________,________________

The undersigned hereby instructs Sanwa Bank California to disburse the proceeds
of this loan as shown below:

          DISBURSEMENT                                          AMOUNT

Credited to the following account: Any and all Advances will    $_______
be deposited into checking account #0560-53600 upon the
request of the Borrower.

                                                                ========

                                       TOTAL:                   $_______

                                      -1-
<PAGE>

                                            BORROWER:

                                            TRINET EMPLOYER GROUP, INC.

                                            BY: /s/ MARTIN BABINEC
                                                --------------------------------
                                            NAME:  Martin Babinec, President

                                            BY: /s/ DOUGLAS DEVLIN, CFO
                                                --------------------------------
                                            NAME:  Douglas Devlin, Chief
                                                   Financial Officer

                                      -2-<PAGE>

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAD BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

                                                                    Exhibit 10.7

                                              CONCUR AGREEMENT NUMBER___________

                           CONCUR TECHNOLOGIES, INC.
                           VOLUME LICENSE AGREEMENT
                           (Employee-Based Pricing)

Volume License Agreement (the "Agreement") made this 12th day of August, 1999,
                                                     ----        ------
(the "Agreement Date") by and between Concur Technologies, Inc. ("Concur") and
TriNet VCO ("Customer").
----------

In consideration of the license fee paid by Customer to Concur and of the mutual
covenants and conditions set forth herein, the parties agree as follows:

DEFINITIONS:

"CustomerOne Services" means the technical support and related services provided
---------------------
by Concur for the Licensed Programs as set forth in Section 5.1 and Exhibit B.

"Documentation" means technical manuals and other documentation relating to the
 -------------
operation and use of the Licensed Programs which are delivered with the
respective Licensed Programs.

"Licensed Programs" means the Concur Software and the Third Party Software.
 -----------------

"Concur Software" means object code versions of the software programs developed
 ---------------
by or for Concur and described in Exhibit A including any accompanying
Documentation, and also including all Updates thereto which may be provided to
Customer by Concur pursuant to the terms of Section 5.

"Third Party Software" means the object code versions of the third party
 --------------------
software programs described in Exhibit A, including any accompanying
Documentation, and including all Updates thereto which may be provided to
Customer by Concur pursuant to the terms of Section 5.

"Updates" means one (1) copy of all published revisions and corrections to the
 ------
Documentation and one (1) copy of corrections and new releases of the Licensed
Programs that are generally made available at no additional cost to Concur's
customers who have ordered CustomerOne Services for the relevant time period.
Updates shall not include any options or future products which Concur or third
party vendors license separately, including any specific applications within the
EmployeeDesktop suite that have not been licensed by Customer under this
Agreement, as referenced in Exhibit A hereto. For example, if Customer is
licensing XMS with EmployeeDesktop, payment of CustomerOne fees for XMS does not
entitle Customer to use CompanyStore without payment of additional license and
CustomerOne fees.

1.   LICENSE

1.1  Concur hereby grants to Customer, subject to the terms and conditions of
     this Agreement and payment of the license fees set forth in Exhibit A, a
     fully-paid, non-exclusive license without right of sublicense (the
     "License") to use the Licensed Programs solely for Customer's own internal
     data processing operations.

     The parties have agreed not to account for the actual number of users of
     the Licensed Programs within Customer's  organization, but that the license
     and maintenance fees shall be proportionate to the total number of
     Customer employees, as published in Customer's  annual report (or other
     reliable data source). Customer shall not permit any third party to use the
     Licensed Programs except as specifically authorized in writing by Concur.

1.2  Customer may not copy any Licensed Programs, or any portion thereof, except
     to (a) make one copy solely for backup or archival purposes; or (b)
     transfer the Licensed Programs to a single hard disk provided Customer
     keeps the original solely for backup or archival purposes. Customer agrees
     to reproduce on each copy the copyright and other proprietary notices
     provided on the Master Disk(s) and the Documentation. Customer may not
     market rent, lease, or relicense the Licensed Programs or use the Licensed
     Programs for third party training, commercial timesharing, or service
     bureau use.

1.3  Customer is authorized to use the Licensed Programs on a back-up computer,
     at no additional charge, when its primary computer is temporarily
     inoperable until operable status is restored and processing on the back-up
     computer is completed. In addition, Customer may install the Licensed
     Programs on a nonproduction test computer, at Customer's disaster recovery
     site, for a period not to exceed thirty (30) days per year, solely to
     recreate Customer's production environment for disaster recovery testing.
     Customer expressly agrees that it shall neither apply nor benefit from the
     functionality of the Licensed Programs under such disaster recovery
     testing, except in the case of disaster.

1.4  Customer agrees not to alter, merge, modify or adapt the Licensed Programs
     or the Documentation in any way or remove or obscure Concur's copyright or
     trademark notices. In particular, Customer agrees not to cause or permit
     the disassembly, decompilation, or reverse engineering of any Licensed
     Program.  In jurisdictions where a right to reverse engineer is provided by
     law unless information is available about products in order to achieve
     interoperability, functional compatibility, or similar objectives, Customer
     agrees to submit a detailed written proposal to Concur concerning
     Customer's information needs before engaging in reverse engineering.

--------------------------------------------------------------------------------
REV 060399                CONCUR TECHNOLOGIES, INC.                      Page 1
--------------------------------------------------------------------------------
<PAGE>

1.5  Other Concur products and/or run time versions of Third Party Software, may
     be embedded in or delivered with the Licensed Programs under this Agreement
     ("Embedded Programs"). Customer's right to use any Embedded Programs shall
     be limited to use necessary to implement the Licensed Programs it has
     licensed. Customer shall have no right to use such Embedded Programs other
     than as necessary for the licensed ordinary use of the Licensed Programs.

2.   OWNERSHIP

2.1  Concur is the owner of, or has the rights to distribute, all of the
     software components of the Licensed Programs, all copies of the Licensed
     Programs, the forms generated by the Licensed Programs and the
     Documentation for the Licensed Programs. The Licensed Programs and the
     Documentation are also protected under applicable copyright laws and
     Customer's right to use the Licensed Programs and the Documentation is
     limited to the terms and conditions set forth in this Agreement. Any use of
     the Licensed Programs by the U.S. government is subject to "restricted
     rights" as that term is defined in FAR 52.227-19(c)(2) or DFAR
     252.227.7013(c)(1) (if used in a defense related agency). Customer does not
     acquire any rights, express or implied, in the Licensed Programs, other
     than those specified in this Agreement

3.   LIMITED WARRANTY AND LIMITATION OF REMEDIES

3.1  Warranties

A.   Licensed Programs

     Concur warrants that (i) each Licensed Program will perform in all material
     respects in accordance with the Documentation for a period of ninety (90)
     days from the date of delivery of such Licensed Program to Customer, and
     (ii) each Licensed Program will not, as a result of the date change from
     December 31, 1999 to January 1, 2000 fail to perform in all material
     respects in accordance with the Documentation in the year 2000 and beyond.

     Concur will not in any way be responsible for the Year 2000 Compliance of
     the email systems, database systems, operating systems, browsers or any
     other system or application (including any data extract files Concur may
     create for Customer based on specifications provided by Customer) with
     which the Licensed Programs interact, interface or exchange data but which
     are not delivered by Concur as part of the Licensed Programs ("Non-Concur
     Applications"); and (b) Concur is not responsible for any Year 2000-related
     problems or compatibility problems resulting from the use of any of the
     Licensed Programs (i) with any Non-Concur Applications that were not listed
     in the supported configurations for the specific version of our Licensed
     Programs licensed by Customer or (ii) that have been customized or altered
     without the written approval of Concur. In addition, it is not Concur's
     responsibility to ensure that Year 2000 Compliant versions of Customer's
     Non-Concur Applications are compatible with the Licensed Programs.

     Concur further warrants that the Licensed Programs do not contain any time
     bombs, usage authorization codes, or other codes or programming devices
     that may be used to access, modify, delete, damage, deactivate or disable
     the Licensed Programs. The foregoing will not be deemed to prohibit or
     limit Concur in any way from including features in the Licensed Programs
     which restrict unlicensed use.

B.   Media

     Concur warrants that the Master Disk provided by Concur will be free from
     defects in materials and workmanship under normal use for a period of
     ninety (90) days from the date of delivery of the Master Disk to Customer.

C.   Services

     Concur warrants that its CustomerOne Services and consulting services will
     be performed consistent with generally accepted industry standards. This
     warranty shall be valid for ninety (90) days from performance of service.

3.2  Limitations of Warranty

     The warranties above are the sole warranties provided by Concur. To be
     covered by these limited warranties, Customer must provide Concur with
     written notice of the breach of warranty within the applicable warranty
     period.  Please do not return any defective Master Disks until you have
     called Concur's technical service support group and received a return
     authorization number ("RMA"). The warranties do not apply if a Master Disk
     has been damaged by misuse, or abuse or if a Licensed Program error is
     caused, in whole or in part by the failure of any hardware or other
     equipment to function in accordance with the specifications of the
     applicable manufacturer. CONCUR SPECIFICALLY DISCLAIMS ALL OTHER WARRANTIES
     AND CONDITIONS, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, ANY
     IMPLIED WARRANTY OR CONDITION OF MERCHANTABILITY OR FITNESS FOR A
     PARTICULAR PURPOSE WITH RESPECT TO THE LICENSED PROGRAMS, THE MEDIA, THE
     CUSTOMERONE SERVICES AND CONSULTING SERVICES. In no event does Concur
     warrant that the LICENSED PROGRAMS, related Documentation, or services will
     satisfy Customer's requirements, be without errors, or that all Licensed
     Program errors will be corrected, or that the operation of the LICENSED
     PROGRAMS will be uninterrupted.

3.3  Exclusive Remedies

     Customer's exclusive remedy, and Concur's entire liability for any breach
     of warranty, shall be:

A.   For Licensed Programs

     At the option of Concur, either correction of the error that caused the
     breach of warranty, or refund of the

--------------------------------------------------------------------------------
                           CONCUR TECHNOLOGIES, INC.                      Page 2
--------------------------------------------------------------------------------
<PAGE>

     license fees paid to Concur for the non-performing Licensed Program.

B.   For Media

     Concur will replace the defective materials unless the Master Disks have
     been damaged by misuse or abuse.

C.   For Services

     At the option of Concur, either the reperformance of the services, or
     refund the fees paid to Concur for the unsatisfactory services.

4.   LIMITATION OF LIABILITY AND DAMAGES

4.1  NEITHER PARTY (INCLUDING CONCUR'S THIRD PARTY SOFTWARE PROVIDERS) WILL BE
     LIABLE FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL, INDIRECT, OR THIRD PARTY
     DAMAGES (INCLUDING LOST PROFITS OR SAVINGS, BUSINESS INTERRUPTION, LOSS OF
     DATA, OR SIMILAR CLAIMS), WHETHER IN AN ACTION IN CONTRACT OR IN TORT, EVEN
     IF THE OTHER PARTY OR ANY OTHER PERSON HAS BEEN ADVISED OF THE POSSIBILITY
     OF SUCH DAMAGES. The limitation of liability set forth in this Section
     shall not be applicable to claims by Concur for Customer's breach of the
     scope of the license rights under Section 1.

4.2  To the maximum extent permitted by law, Concur's total liability under this
     Agreement, for whatever cause other than bodily injury, whether in an
     action in contract or in tort, will be limited to the actual license fees
     paid by Customer under this Agreement, and if such liability results from
     Customer's use of the Licensed Programs or from services provided by or on
     behalf of Concur, such liability will be limited to the actual fees paid by
     Customer for the relevant Licensed Program or services giving rise to the
     liability.  The limitation of liability set forth in this Section shall not
     be applicable to claims of infringement under Section 9.

4.3  The parties acknowledge that this Agreement allocates the risks between
     Concur and Customer and that the fees reflect the limited warranties,
     limitation of liability, and allocation of risk under this Agreement.
     Customer further acknowledges that the pricing and terms of this Agreement
     would have been different had there been a different allocation of risk.

4.4  The parties acknowledge and agree that the limitations specified in this
     Section will survive and apply even if any remedy provided in this
     Agreement is determined to have failed of its essential purpose.

5.   CUSTOMERONE, CONSULTING AND TRAINING SERVICES

5.1  CustomerOne Services will be provided to customer only under the terms of
     Concur's CustomerOne policies (including applicable fees) in effect on the
     date customer support is rendered.  Concur's current policies for its
     CustomerOne Services are set forth in Exhibit B attached to this Agreement.
     Reinstatement of lapsed CustomerOne Services is subject to Concur's
     CustomerOne reinstatement fees in effect on the date CustomerOne Services
     are reordered.

5.2  Concur will provide consulting and training services agreed to by the
     Parties in writing under the terms of this Agreement.  All consulting
     services shall be billed on a time and materials basis unless the parties
     expressly agree otherwise in writing. Any consulting or training services
     acquired from Concur shall be bid separately from the Licensed Programs and
     Customer may acquire either Licensed Programs or consulting services
     without acquiring the other. Any training services provided by Concur shall
     be subject to reasonable cancellation charges as follows: Written notice of
     cancellation of any scheduled training classes must be received at least
     fifteen (15) days prior to the first scheduled day of class or Customer
     will be responsible for the full amount that would have been charged to
     Customer for such class. For any on-site services requested in writing by
     Customer, Customer shall reimburse Concur for reasonable, actual travel and
     out-of-pocket expenses incurred.

5.3  Any ideas, know-how, or techniques which may be developed by Concur under
     this Agreement, including any enhancements or modifications made to
     Concur's Licensed Programs (collectively, "Developments"), shall be the
     property of Concur. Concur may in its sole discretion develop, use, market,
     and license any software or data processing material that is similar or
     related to that which was developed by Concur for Customer. Concur shall
     not be required to disclose information concerning any Developments which
     Concur deems to be proprietary or confidential. Concur hereby grants to
     Customer all rights to the Developments except for commercialization of the
     Developments. Such rights shall include, but not be limited to, the right
     to use, modify, adapt, copy and distribute (internally to Customer) such
     Developments.

5.4  Customer acknowledges that Concur has extensive expertise, experience, and
     proprietary products and tools in the area of operational cost
     (specifically, travel and entertainment expenses and costs associated with
     the procurement and human resources processes) management, processing and
     automation, and that Concur intends to utilize such expertise, experience,
     products and tools in providing consulting services and other services in
     such field to other clients. Subject to Concur's compliance with the
     confidentiality provisions stated herein, nothing in this Agreement shall
     restrict or limit Concur from performing such development. consulting or
     other services to any other entity in any industry. Customer agrees that,
     except as otherwise agreed in this Agreement, Concur and its employees may
     provide consulting services similar in nature to the services provided
     hereunder for any third parties both during and after the term of this
     Agreement.

5.5  Customer and Concur agree to cooperate in good faith to achieve completion
     of the Services in a timely and professional manner. Customer understands
     and agrees that Concur's provision of the consulting services may
<TABLE>
<S>                             <C>                                           <C>
-------------------------------------------------------------------------------------
REV060399                       CONCUR TECHNOLOGIES, INC.                      Page 3
-------------------------------------------------------------------------------------
</TABLE>
<PAGE>

     depend on completion of certain Customer tasks or adherence to customer
     schedules within Customer's control; consequently, the schedule for
     completion of the consulting services or any portion thereof may require
     adjustments or changes in the event such Customer tasks or schedules change
     or are modified or are not completed as anticipated. Concur shall bear no
     liability or otherwise be responsible for delays in the provision of
     consulting services or any portion thereof occasioned by Customer's failure
     timely to complete a Customer task or adhere to a Customer schedule.

6.   PAYMENT AND TAXES

6.1  Payment of license fees shall be due thirty (30) days after delivery of the
     Licensed Programs. All other fees, including fees for CustomerOne Services
     which are payable in advance of the applicable Support Period, shall be
     paid within thirty (30) days of Customer receipt of a proper invoice.
     Customer acknowledges and agrees that Concur may assign the right to
     receive payments due under this Agreement, to a third party for the purpose
     of financing and/or leasing such payments. If Customer's procedures require
     that an invoice be submitted against a purchase order before payments can
     be made, Customer will be responsible for issuing the purchase order at the
     time of order. Customer agrees to pay applicable media and shipping
     charges. Customer shall pay all applicable shipping charges and any
     federal, state, or local excise, sales, use or other taxes (except taxes
     based on Concur's net income) imposed in respect of the License granted
     hereunder or otherwise arising out of this Agreement. In the event that
     Concur is required to pay any such tax, Customer shall promptly reimburse
     Concur for the same. Customer shall reimburse Concur for all reasonable
     travel and out-of-pocket expenses incurred by Concur in rendering any
     services. Customer acknowledges that Concur will not commence
     implementation or consulting services until Customer's first scheduled
     license fee payment under this Agreement (whether such scheduled payment
     represents the total license fees set forth in Exhibit A or a portion
     thereof) has been paid by Customer. If past due amounts owing from Customer
     are not paid within thirty (30) days (i) the unpaid amount shall bear
     interest at the rate of 1% per month, and (ii) Concur will have the right
     to terminate this Agreement upon thirty (30) days written notice to
     Customer. Customer shall reimburse Concur for all reasonable costs incurred
     (including reasonable attorneys' fees) in collecting past due amounts.

7.   EXPORT RESTRICTIONS

7.1  Customer agrees to comply fully with all relevant export laws and
     regulations of the United States ("Export Laws") to ensure that neither
     the Licensed Programs nor any direct product thereof are (i) exported
     directly or indirectly, in violation of Export Laws; or (ii) intended to be
     used for any purposes prohibited by the Export Laws, including without
     limitation, nuclear, chemical, or biological weapons proliferation. If a
     Licensed Program has been rightfully obtained by Customer outside of the
     United States, Customer agrees not to re-export such Licensed Program or
     any related technical information except as permitted by the laws and
     regulations of the United States and those of the jurisdiction in which
     Customer obtained such Licensed Programs.

8.   TERM AND TERMINATION

8.1  This Agreement remains effective until terminated. Customer can terminate
     this Agreement at any other time upon returning the Master Disk to Concur
     and destroying all the copies of the Licensed Programs in any form in
     Customer's possession. This License will also terminate if Customer fails
     to comply with any material term or condition of this Agreement and such
     breach is not cured within thirty (30) days following written notice from
     Concur specifying such breach. This Agreement will terminate automatically
     upon any transfer of a copy of the Licensed Programs by Customer other than
     as permitted by this Agreement. The parties rights and obligations under
     Sections 2, 3.2, 4, 6, 7, 8.1, 9, 10, 11, and 12 shall survive termination
     of this Agreement. In the event of a termination of this Agreement for any
     reason, Customer shall be obligated to pay Concur for any authorized work
     performed and authorized expenses incurred through the date of the
     termination.

8.2  In the event of a termination of this Agreement, and in addition to any
     other rights or remedies available to Concur, Customer shall promptly
     return to Concur the Master Disk and destroy all copies of the Licensed
     Programs in any form in Customer's possession. Within two (2) weeks after
     any termination, Customer shall certify in writing to Concur that it has
     destroyed any and all copies of the Licensed Programs in Customer's
     possession. Except as provided in Section 3, Customer shall not be
     entitled to a refund of any portion of the license fee upon termination of
     this Agreement.

9.   INDEMNIFICATION FOR INFRINGEMENT

9.1  Concur warrants to Customer that the Licensed Programs do not infringe any
     patent issued in the United States or a European Union country, or any
     trade secret, copyright, or other proprietary rights. As Customer's
     exclusive remedy for breach of this warranty and Concur's entire liability
     for infringement, Concur agrees to indemnify and hold Customer harmless
     with respect to any suit, claim, or proceeding brought against Customer
     alleging that Customer's permitted use of the Licensed Programs under this
     Agreement constitutes an infringement of any patent issued in the United
     States or a European Union country, or any trade secret, copyright or other
     proprietary right. Concur shall defend Customer against any such suit,
     claim, or proceeding, and pay all litigation costs and reasonable
     attorneys' fees incurred in connection with such suit, claim or proceeding,
     and all settlement payments and damages awarded therein, provided that
     Concur is notified in writing within thirty (30) days of any such suit,
     claim or proceeding, Customer tenders the control of any such claim or
     proceeding to Concur, and Customer cooperates with Concur in the defense or
     settlement of same.

9.2  Upon notice of alleged infringement or if in Concur's opinion such a claim
     is likely, Concur shall have the

--------------------------------------------------------------------------------
                           CONCUR TECHNOLOGIES, INC.                      Page 4
--------------------------------------------------------------------------------
<PAGE>

     right, at its option and expense, either: (a) to procure for Customer the
     right to continue using the Licensed Programs; or (b) to replace or modify
     the Licensed Programs so that they provide substantially the same, or
     greater, functionality and performance than the infringing Licensed
     Program, but are no longer subject to a claim or infringement. If, in
     Concur's opinion, none of the options above are reasonably available,
     Customer's sole and exclusive remedy shall be to return the infringing
     Licensed Programs to Concur in exchange for a refund of the price that
     Customer paid to Concur for such Licensed Programs, less reasonable
     amortization pro-rated over a forty-eight (48) month term from the date the
     infringing Licensed Programs are shipped to Customer. Concur shall not have
     any obligation under this Section: (a) to the extent the claim arises from
     a modification of the Licensed Program other than by or on behalf of Concur
     or from Customer's use of the Licensed Program in combination with other
     non-Concur software, equipment or devices; (b) if Concur has provided
     Customer with a non-infringing version of the Licensed Programs (that
     provide substantially the same, or greater, functionality and performance
     than the infringing Licensed Program) and Customer does not promptly
     replace all copies of the infringing version of the Licensed Programs with
     the non-infringing version; or (c) the use of any version of a Licensed
     Program other than the most recent version of that Licensed Program, to the
     extent that Customer's liability for such infringement claim would have
     been avoided by the use of said most recent version.

10.  CONFIDENTIALITY

10.1 By virtue of this Agreement, Concur and Customer may have access to
     information that is confidential to one another ("Confidential
     Information"). Confidential Information shall be limited to the Licensed
     Programs, the results of any benchmark testing of the Licensed Programs
     (both of the foregoing are trade secrets of Concur), the terms and pricing
     under this Agreement and all information clearly identified as
     confidential. A party's Confidential Information shall not include
     information that: (a) is or becomes a part of the public domain through no
     act or omission of the other party; (b) was rightfully in the possession of
     the other party or was known by it prior to its disclosure; (c) is
     independently developed by the receiving party without use of any
     Confidential Information of the other party; or (d) was or is provided by
     the disclosing party to third parties without restriction on disclosure.

10.2 The parties (including their respective employees and agents) agree to
     hold each other's Confidential Information in confidence during the term of
     this Agreement and for two (2) years thereafter. The parties further agree,
     unless required by law or by court order, not to disclose or make any
     Confidential Information of the other party available in any form to any
     third party or to use it for any purpose other than the implementation of
     this Agreement. Customer will not permit anyone except Authorized Users to
     have access to the Licensed Programs.

11.  RIGHT TO AUDIT

11.1 Concur may from time to time request Customer to provide a certification
     signed by a duly authorized representative of Customer verifying the total
     number of persons employed by Customer.

12.  GENERAL TERMS

12.1 This Agreement is governed by the laws of the State of Washington,
     excluding those laws that direct the application of the laws of another
     jurisdiction. The parties agree that this Agreement shall not be governed
     by the 1980 U.N. Convention on Contracts for the International Sale of
     Goods and that English is the governing language of this Agreement. The
     parties hereby irrevocably consent to the personal jurisdiction of the
     federal and state courts sitting in King County in the State of Washington,
     and to service of process within or without Washington by certified mail
     requiring a signed receipt, and the parties agree that any court action
     relating to the enforcement of any arbitration award or judgment or seeking
     injunctive or other equitable relief, shall be brought in such courts.

12.2 All controversies or claims arising out of or relating to this Agreement
     shall be resolved in accordance with the terms and conditions set forth in
     this Section. First, the parties will attempt in good faith to resolve each
     controversy or claim within sixty (60) days by negotiations between senior
     executives of the parties who have settlement authority and who do not have
     direct responsibility for the administration of this Agreement. The
     disputing party shall give the other party written notice of the
     controversy or claim in accordance with the notice provision of this
     Agreement. The other party shall submit a response within twenty (20) days
     after receiving said notice. The notice and response shall include (a) a
     summary of the party's position and a summary of the evidence and arguments
     supporting its position, and (b) the name of the executive who will
     represent the party. The executives shall meet at a mutually acceptable
     time and place within thirty (30) days of the disputing party's notice and
     thereafter as often as they deem reasonably necessary to resolve the
     controversy or claim. Concur and Customer agree that all negotiations
     conducted pursuant to this Section are confidential and shall be treated as
     compromise and settlement negotiations for purposes of the Federal Rules of
     Evidence and state rules of evidence.

     If the controversy or claim has not been resolved within sixty (60) days of
     the disputing party's notice, the controversy or claim will be resolved
     through binding arbitration conducted in accordance with the commercial
     arbitration rules of the American Arbitration Association ("AAA") then in
     effect. If Customer initiates arbitration, the arbitration proceeding will
     be held in King County in the State of Washington and if Concur initiates
     arbitration, the arbitration proceeding will be held in the city of the
     federal district courthouse closest to Customer's principal place of
     business. The parties agree that service of any notices in the course of
     such arbitration at their respective addresses as provided in Section 12.4
     shall be valid and sufficient. All proceedings will be held and a
     transcribed record prepared in English. The parties will choose, by
--------------------------------------------------------------------------------
REV060399                  CONCUR TECHNOLOGIES, INC.                      Page 5
--------------------------------------------------------------------------------
<PAGE>

      mutual agreement, one arbitrator within thirty (30) days of receipt by a
      party of the other party's notice of its intent to arbitrate. If no
      arbitrator is appointed within the time provided in this Agreement or any
      extension of time which is mutually agreed upon, the AAA will make such
      appointment within thirty (30) days of such failure. The award rendered by
      the arbitrator shall include costs of arbitration, reasonable attorneys'
      fees and reasonable costs for expert and other witnesses, and judgment on
      such award may be entered in any court having jurisdiction thereof.

      Nothing in this Section shall be deemed to prohibit or restrict either
      party from seeking injunctive relief and such other rights and remedies as
      it may have at law or equity for any actual or threatened breach of any
      provision of this Agreement relating to a party's confidential information
      or proprietary rights. Except for actions for nonpayment or breach of
      proprietary rights in the Licensed Programs, no action, regardless of
      form, arising out of this Agreement may be brought more than one (1) year
      after the cause of action has accrued.

12.3  Except for Customer's obligation to pay Concur, neither party shall be
      liable for any delay or failure to perform due to external causes beyond
      its reasonable control.

12.4  All notices shall be in writing and shall be delivered personally
      (including overnight mail by private courier) or sent by first-class mail
      (return receipt requested) or facsimile transmission to the address listed
      in the signature page to this Agreement. Notice shall be deemed to have
      been given at the time of delivery, twelve (12) hours after confirmation
      of receipt if sent by facsimile, and three (3) business days after mailing
      if sent by first-class mail. If Customer has any questions concerning this
      Agreement, Customer can contact Concur at the following address:

               Concur Technologies, Inc.
               6222 185th Avenue NE
               Redmond, WA  98052
               Attention: Contract Administration

12.5  Customer acknowledges that it has read this Agreement, understands it and
      agrees to be bound by its terms and conditions. Customer further agrees
      that this Agreement (including the Exhibits attached to this Agreement) is
      the complete and exclusive statement of the agreement between Customer and
      Concur regarding its subject matter and supersedes and merges any earlier
      proposal or prior arrangement, whether oral or written, and any other
      communications between Customer and Concur relative to the subject matter
      of this Agreement. If any provision of this Agreement is found void or
      unenforceable, that provision will be enforced to the maximum extent
      possible, and the remaining provisions of this Agreement will remain in
      full force and effect. To expedite order processing, Customer agrees that
      Concur may treat documents faxed by Customer to Concur as original
      documents; nevertheless, either party may require the other to exchange
      original signed documents. No purchase order, other ordering document, or
      any handwritten or typewritten text which purports to modify or supplement
      the printed text of this Agreement shall add to or vary the terms of this
      Agreement. Customer consents to Concur identifying Customer as a customer
      of the Licensed Programs on Concur's customer list; provided, however,
      that Customer's name will not appear with greater prominence than any of
      Concur's other customers listed in like manner and that Customer's name
      will not be used in any manner suggesting any special endorsement of
      Concur by Customer.

12.6  The parties agree that, during the term of this Agreement and for a period
      of twelve (12) months thereafter, neither party will, except with the
      prior written consent of the other, offer employment to or employ any
      person who is employed by the other party (or any person who is a
      subcontractor to the other party or an employee thereof) and who has been
      introduced to the other party in connection with this Agreement.

--------------------------------------------------------------------------------
                           CONCUR TECHNOLOGIES, INC.                      Page 6
--------------------------------------------------------------------------------
<PAGE>

12.7  Neither this Agreement nor the License granted herein may be assigned or
      transferred without the prior written permission of Concur, which
      permission shall not be unreasonably withheld. Any attempted assignment
      without such consent will be void. Notwithstanding the foregoing, Concur
      may assign this Agreement, without Customer's permission, in connection
      with any merger, consolidation, sale of all or substantially all of
      Concur's assets, or any other similar transaction. In addition, Customer
      agrees that Concur may subcontract the consulting services to be performed
      in connection with the implementation of the Licensed Programs provided
      that any such subcontracting arrangement shall not relieve Concur of any
      of its obligations hereunder.

<TABLE>
<S>         <C>                            <C>
Concur:     Concur Technologies, Inc.       Customer:  TriNet VCO
                                                     --------------------------------------------

Name:       Anne Kroger                     Name:     Douglas P. Devlin
                                                      -------------------------------------------

Title:      Director of Finance             Title:    Chief Financial Officer
                                                      -------------------------------------------

Signature:  /s/ Anne Kroger                 Signature: /s/ DOUGLAS P. DEVLIN
            ----------------------                    -------------------------------------------

Date:       August 12, 1999                 Date:         August 12, 1999
            ----------------------                    -------------------------------------------

                                            Volume License Administrator: -----------------------

                                            Phone/Fax:  (510) 352-5000 / (510) 352-6480
                                                       ------------------------------------------

                                            Address:    101 Callan Avenue, San Leandro, CA  94577
                                                        -----------------------------------------

                                            Customer Email Address: martyr@trinetgroup.com
                                                                    -----------------------------
</TABLE>

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                           CONCUR TECHNOLOGIES, INC.                      Page 7
--------------------------------------------------------------------------------
<PAGE>

                                   EXHIBIT A

During the first [ * ] years from the date of this Agreement, the parties
agree that (a) [ * ] license fees, beyond those set forth below, shall
be owed by Customer and (b) the annual CustomerOne Services fee rate will not
increase more than [ * ] each year.

For the period beginning [ * ] years after the date of this Agreement, if,
due to the number of Customer employees in the database and Concur's license
fees in effect at that time, additional license fees are due and they are in
excess of [ * ], the Customer will pay [ * ] at that time and make annual
payments not to exceed, in the aggregate, [ * ] until the additional fee has
been paid in full.

Licensed Programs

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
       DATE                     SOFTWARE PRODUCTS LICENSED                SPECIFIED          # OF USERS/        EXTENDED
                                                                           COUNTRY            EMPLOYEES          PRICE
 -------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>                                       <C>                <C>                  <C>
       7/99                    EmployeeDesktop                               USA                [ * ]            [ * ]
-------------------------------------------------------------------------------------------------------------------------------
       7/99                    Seeker Core and Payroll/PTO                   USA                [ * ]            [ * ]
                               Seeker Benefits Enrollment & Modeling
                               Seeker Events@Work
                               Back-Office Interface (Peoplesoft)
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
  . Amounts above do not include applicable taxes and shipping charges.
  * Unlimited use during the initial 5-year term only.

CustomerOne Services

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
  COVERAGE DATES                SOFTWARE PRODUCTS LICENSED                SPECIFIED          # OF USERS/        EXTENDED
                                                                           COUNTRY            EMPLOYEES          PRICE
-------------------------------------------------------------------------------------------------------------------------------
<S>                            <C>                                        <C>                <C>                  <C>
   8/1/99-7/31/2000            EmployeeDesktop                               USA                [ * ]             [ * ]
-------------------------------------------------------------------------------------------------------------------------------
   8/1/99-7/31/2000            Seeker Core and Payroll/PTO                   USA                [ * ]             [ * ]
                               Seeker Benefits Enrollment & Modeling
                               Seeker Events@Work
                               Back-office Interface (Peoplesoft)
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
  .  Amounts above do not include applicable taxes and shipping charges.
  *  [ * ] during the initial [ * ] year term only.
  ** CustomerOne Maintenance will be billed annually at [ * ] of the license
  fees listed above beginning 8/1/1999.
  [ * ] Confidential Treatment Requested
--------------------------------------------------------------------------------
                           CONCUR TECHNOLOGIES, INC.                      Page 8
--------------------------------------------------------------------------------
<PAGE>

                                   EXHIBIT B
                        Summary of CustomerOne Services

Service Description:
---------------------

During the one year period commencing on the Agreement Date, Concur will provide
the CustomerOne Services described below for the fees indicated on Exhibit A.
The period during which CustomerOne Services will be provided to and purchased
by Customer will be automatically extended: (i) for an additional one-year
period unless terminated in writing by Concur or Customer at least thirty (30)
days before the end of the initial one-year period and; (ii) thereafter, for
successive additional one-year periods unless terminated in writing at least
thirty (30) days before the end of the then current one-year period by Concur or
Customer (the initial end of any one-year period and each subsequent extension
period are hereinafter each referred to as a "Support Period"). Concur reserves
the right to change any term of its CustomerOne Services (including the fee),
effective at the beginning of any Support Period, by giving Customer written
notice at least sixty (60) days before the end of the prior Support Period.
This Agreement may also be terminated during a Support Period as provided in
Section 8 of the Agreement.

Services:
----------

Technical Support: The CustomerOne Services provide support for the then current
version of the Licensed Program. The CustomerOne Services will include telephone
support and access to Concur Technologies' electronic support services via the
World Wide Web, including incident entry and review. An Incident is any call or
electronic inquiry to Concur Technologies' Technical Support, whether it regards
a product question, error message, or configuration issues, which generates a
call ID or tracking number.  Concur will provide to Customer telephone technical
support for seven (7) days a week and twenty-four (24) hours per day, excluding
holidays. During the hours of 6:00 p.m. to 6:00 am. (PST) Concur's technical
support department is available via an emergency pager service. Customer will be
given the emergency pager number.  The emergency pager is exclusively for
Priority 1 problems (as defined below) outside of normal business hours.
Priority 1 problems are severe problems in a production environment.  Usage of
the emergency pager for problems other than Priority 1 will be billed at
Concur's standard technical consulting rate.  No support will be available from
6:00 p.m. (PST) on the day immediately preceding a holiday until 6:00 a.m. (PST)
on the day immediately following a holiday.  Concur currently observes the
following holidays:  New Year's Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, Day after Thanksgiving, and Christmas Day.  These holidays are
subject to change without prior notice to Customer.

CustomerOne Enterprise Service: There is no Incident limit on CustomerOne
Enterprise Service contracts.

Service Delivery: All support services will be provided to Customer's designated
Contacts.  "Contact" is defined for these purposes as an individual listed on
the Technical Support Contact List at the end of this Exhibit B and for whom all
applicable CustomerOne Services fees for Contacts have been paid.  Concur
provides telephone support to Customer's information service help-desk.  Two
Contacts may be assigned for every Server database* covered under a CustomerOne
Services Agreement.

Upgrade/Updates: Concur will provide to Customer at no additional charge master
copies of any Updates to the then-current version of the
Licensed Program if and when each such Update is generally made available by
Concur to its other customers current on CustomerOne Services.

One master copy of the Update will be made available to each Contact.  Customer
acknowledges and agrees that each such Update shall be regarded as a Licensed
Program under this Agreement, and Customer's use of the Updates shall be subject
to all the terms and conditions of this Agreement regarding Licensed Programs.
It is expressly understood and agreed by Customer that Concur is under no
obligation to issue Updates under future products that Concur or a third party
vendor licenses separately, including any specific applications within the
EmployeeDesktop suite that have not been licensed by Customer under this
Agreement, as referenced in Exhibit A hereto.  For example, if Customer is
licensing XMS with EmployeeDesktop, payment of CustomerOne fees for XMS does not
entitle Customer to use CompanyStore without payment of additional license and
CustomerOne fees.

Error Corrections. Provided that the Licensed Programs are running under an
operating environment that is supported by Concur (each, a "Supported
Environment"), Concur shall use its reasonable efforts to correct any
reproducible programming error in a Licensed Program which significantly
degrades the use of the Licensed Program ("Error") with a level of effort
commensurate with the severity of the Error, provided that Concur (i) shall have
no obligation to correct all Errors in the Licensed Programs: and (ii) shall not
be responsible for correcting any Errors not attributable to the Licensed
Programs.  Errors attributable to Concur shall be those that are reproducible by
Concur on unmodified Licensed Programs.  Errors attributable to Customer's
modification or misuse of a Licensed Program, or to Customer's change in or of
its Supported Environment, will be billed at Concur's standard consulting rates
then in effect.

Exclusions and Limitations. Concur is not required to provide any CustomerOne
Services relating to problems arising out of (i) Customer's failure to
implement all Updates issued under the Agreement: (ii) any alternations or
additions to the Licensed Programs performed by parties other than Concur: (iii)
interconnection of the Licensed Programs with other software products not
supplied by Concur except as expressly prescribed in the Documentation; or (iv)
use of the Licensed Programs on a system other than a Supported Environment.

--------------------------------------------------------------------------------
Concur reserves the right to terminate support (including Error correction
services) of any Licensed Program or prior release that has been superseded by a
new release anytime after six (6) months have elapsed since the shipment of a
new release.
--------------------------------------------------------------------------------

Service Description & Procedure
--------------------------------

Procedures:

--------------------------------------------------------------------------------
                           CONCUR TECHNOLOGIES, INC.                      Page 9
--------------------------------------------------------------------------------
<PAGE>

Who Provides CustomerOne Services: CustomerOne Services are provided by
specialists in the Concur Technologies Technical Assistance Center ("TAC") in
response to a request from Customer. The TAC is the focal point of service
delivery and service interaction with Customer. Both telephone support and
electronic services are offered from the TAC. Only Customer's Contact(s) will
communicate with the TAC specialists.

Submitting a Service Request: To submit a request for service, Customer has two
service options:

     (a)  over the phone,Contact will dial Concur Technologies' service number
          as supplied to the Customer by Concur. When a TAC specialist answers
          the phone, Contact will be prepared to discuss the problem with the
          specialist.

     (b)  electronically, Contact will enter the service request via a secure
          Web site. Contact will receive URL and login instructions in
          information package.

In order to submit a service request, either telephonically or electronically,
Contact will employ the following procedures as applicable:

     (a)  provide a clear description that fully explains what the problem is,
          and when the problem occurs;

     (b)  provide a diagnostic trace, sample code that causes the problem to
          occur or a file of the failure symptom that has been recorded on the
          end user's system; and

     (c)  describe the steps taken to attempt to resolve the problem.

Definitions of Priorities:

Priority 1: (P1) This status is reserved for severe problems in a production
environment.  These problems occur when the Licensed Program is completely down,
thereby halting transactions throughout the organization, and there is no work-
around.

Priority 2: (P2) Serious problem in a pilot, test or production environment.  A
major function is experiencing a reproducible problem which causes major
inconvenience; common operations fail consistently or the application crashes
readily.

Priority 3. (P3) A fundamental function is experiencing an intermittent problem,
or a common operation sometimes fails; a less common operation fails
consistently.

Priority 4: (P4) Minor problems: a less common operation fails occasionally; all
other errors.

Priority 5: (P5) Request for enhancements.

    Concur reserves the right to re-prioritize a problem report to render it
                       consistent with these definitions

Response Time: Upon receipt of a service request, a TAC specialist will reply to
Contact to discuss the Problem within one (1) business hour on a P-1 request,
within four (4) business hours on a P-2 request, within eight (8) hours on a P-3
request, and within twenty four (24) hours on a P4 or P- 5 request from the time
of receipt of the service request.

Note: Hours are standard business hours

Server database is defined as either the XMS Server or Company Store Server
that holds reports and other information required by the relevant Licensed
Program.

--------------------------------------------------------------------------------
                           CONCUR TECHNOLOGIES, INC.                     Page 10
--------------------------------------------------------------------------------
<PAGE>

                        Technical Support Contact List

Required Information:

     Please complete the required contact information below for:
     1)   The individual who should be contacted regarding sales and renewal
          issues, and
     2)   The individual(s) who will be designated Customer's Technical Support
          Contact(s).

<TABLE>
<CAPTION>
1) Administrative/Renewal Contact                          2) Technical Support Contact/Designator
---------------------------------                          ---------------------------------------
<S>       <C>                                              <C>       <C>
Company   TriNet VCO                                       Company   TriNet VCO
          ----------------------------------                         ------------------------------------------

Name:     Marty Reese                                      Name:     Vincent Polite
          ----------------------------------                         ------------------------------------------

Title:    Director, E-business development                 Title:    Team Lead - Internet & Systems Development
          ----------------------------------                         ------------------------------------------

Address:  101 Callan Avenue                                Address:  101 Callan Avenue
          ----------------------------------                         ------------------------------------------

City:     San Leandro  State:  CA    Zip:  94577           City:     San Leandro   State:  CA   Zip  94577
          -----------          ----        ------                    -----------           --        -----

Phone:    (510) 297-0274   Fax:   (510) 352-6480           Phone:    (510) 297-0237   Fax:  (510) 352-6480
          --------------          --------------                     --------------         --------------

Email:    martyr@trinetgroup.com                           Email:    vincentp@trinetgroup.com
          ----------------------                                     ----------------------------------------

<CAPTION>
3) Technical Support Contact/Designator
---------------------------------------
<S>       <C>
Company   TriNet VCO
          ----------------------------------

Name:     Paul Sheirich
          ----------------------------------

Title:    Peoplesoft Project Manager
          ----------------------------------

Address:  101 Callan Avenue
          ----------------------------------

City:     San Leandro  State:  CA  Zip  94577
          -----------          --       -----

Phone:    (510) 352-6400  Fax:  (510) 352-6480
          --------------        --------------

Email:    pauls@trinetgroup.com
          ----------------------------------
</TABLE>

--------------------------------------------------------------------------------
                           CONCUR TECHNOLOGIES, INC.                     Page 11
--------------------------------------------------------------------------------
<PAGE>

                                   EXHIBIT C

As stated within this document, the Concur Technologies, Inc. Volume Licensing
Agreement (the "Agreement", above), exceptions to the standard terms may be made
and agreed to in writing by "Concur" and "Customer". This section, Exhibit C,
will amend the standard terms as follows:

Section 1. License

     Sub-section 1.1

Customer will be able to operate the licensed programs across multiple,
networked servers (CPUs) that are under the control of the Customer in order to
properly support the Customer's PEO and Enterprise ES clients. Customer's
clients will, on occasion, behave as Users of the Licensed Programs (subject to
the terms of Exhibit A to the Agreement) and not sub-licensees.

     Sub-section 1.2

Subject to Customer's confidentiality obligations under the Agreement, Customer
may only train the Customer's clients in the use of the user interfaces of the
Licensed Programs.

Section 6. Payment and Taxes
     Sub-section 6.1

The payment of the licenses fees stated in Exhibit A will be due no later than
30 September 1999. An initial payment by Customer of 10% of the license fee will
be made. The balance of the license fees will not be considered "past due" until
after the agreed date above.

--------------------------------------------------------------------------------
                           CONCUR TECHNOLOGIES, INC.                     Page 12
--------------------------------------------------------------------------------

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