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                                                                   Exhibit 10.12

                           LOAN AND SECURITY AGREEMENT

      This LOAN AND SECURITY AGREEMENT (this "Agreement") dated as of December
29, 2000, between SILICON VALLEY BANK, a California-chartered bank, with its
principal place of business at 3003 Tasman Drive, Santa Clara, California 95054
and with a loan production office located at Wellesley Office Park, 40 William
Street, Suite 350, Wellesley, Massachusetts 02481, doing business under the name
"Silicon Valley East" ("Bank") and ART TECHNOLOGY GROUP, INC., a Delaware
corporation with its principal place of business at 25 First Street, Cambridge,
Massachusetts 02141 ("Borrower"), provides the terms on which Bank shall lend to
Borrower and Borrower shall repay Bank. The parties agree as follows:

      1 ACCOUNTING AND OTHER TERMS

      Accounting terms not defined in this Agreement shall be construed
following GAAP. Calculations and determinations must be made following GAAP. The
term "financial statements" includes the notes and schedules. The terms
"including" and "includes" always mean "including (or includes) without
limitation" in this or any Loan Document. Capitalized terms in this Agreement
shall have the meanings set forth in Section 13. This Agreement shall be
construed to impart upon Bank a duty to act reasonably at all times.

      2 LOAN AND TERMS OF PAYMENT

      2.1 Credit Extensions. Borrower shall pay Bank the unpaid principal amount
of all Credit Extensions and interest on the unpaid principal amount of the
Credit Extensions as and when due in accordance with this Agreement.

      2.1.1 Revolving Advances.

            (a)   Bank shall make Advances not exceeding the lesser of (i) or
(ii) below:

                  (i) the amount equal to (A) the Committed Revolving Line,
                  minus (B) the amount of all outstanding Letters of Credit
                  (including drawn but unreimbursed Letters of Credit), minus
                  (C) the aggregate outstanding Advances hereunder; or

                  (ii) the amount equal to (A) the Borrowing Base, minus (B)
                  seventy-five percent (75%) of the face amount of all
                  outstanding Letters of Credit (including drawn but
                  unreimbursed Letters of Credit), minus (C) the aggregate
                  outstanding Advances hereunder.

Amounts borrowed under this Section may be repaid and reborrowed during the term
of this Agreement.

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

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

      2.1.2 Letters of Credit.

            (a) Bank shall issue or have issued Letters of Credit for Borrower's
account not exceeding (i) the lesser of the Committed Revolving Line or the
Borrowing Base minus (ii) the outstanding principal balance of the Advances, but
the face amount of outstanding Letters of Credit (including drawn but
unreimbursed Letters of Credit and any Letter of Credit Reserve) may not exceed
$12,500,000.00 Each Letter of Credit shall expire no later than 364
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days after the Maturity Date provided Borrower's Letter of Credit reimbursement
obligation is secured by cash on terms acceptable to Bank at any time after the
Maturity Date if the term of this Agreement is not extended by Bank. All Letters
of Credit shall be, in form and substance, acceptable to Bank in its sole
discretion and shall be subject to the terms and conditions of Bank's form of
standard Application and Letter of Credit Agreement.

            (b) The obligation of Borrower to immediately reimburse Bank for
drawings made under Letters of Credit shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of
this Agreement and such Letters of Credit, under all circumstances whatsoever.
Borrower shall indemnify, defend, protect, and hold Bank harmless from any loss,
cost, expense or liability, including, without limitation, reasonable attorneys'
fees, arising out of or in connection with any Letters of Credit.

            (c) Borrower may request that Bank issue a Letter of Credit payable
in a currency other than United States Dollars. If a demand for payment is made
under any such Letter of Credit, Bank shall treat such demand as an Advance to
Borrower of the equivalent of the amount thereof (plus cable charges) in United
States currency at the then prevailing rate of exchange in San Francisco,
California, for sales of that other currency for cable transfer to the country
of which it is the currency.

            (d) Upon the issuance of any letter of credit payable in a currency
other than United States Dollars, Bank shall create a reserve (the "Letter of
Credit Reserve") under the Committed Revolving Line for letters of credit
against fluctuations in currency exchange rates, in an amount equal to ten
percent (10%) of the face amount of such letter of credit. The amount of such
reserve may be amended by Bank from time to time to account for fluctuations in
the exchange rate. The availability of funds under the Committed Revolving Line
shall be reduced by the amount of such reserve for so long as such letter of
credit remains outstanding.

      2.2 Overadvances. If Borrower's Obligations under Sections 2.1.1 and 2.1.2
exceed the Committed Revolving Line, Borrower must immediately pay in cash to
Bank the excess. Further, if Borrower's Obligations under Sections 2.1.1 and
2.1.2 (up to seventy-five percent (75) of the face amount of all Letters of
Credit) exceed the Borrowing Base, Borrower must immediately pay in cash to Bank
the excess.

      2.3 Interest Rate, Payments.

            (a) Interest Rate. Advances accrue interest on the outstanding
principal balance at a per annum rate equal to the Prime Rate. After an Event of
Default, Obligations accrue interest at five percent (5.0%) above the rate
effective immediately before the Event of Default. The interest rate increases
or decreases when the Prime Rate changes. Interest is computed on a 360 day year
for the actual number of days elapsed.

            (b) Payments. Interest is payable on the Payment Date of each month.
Bank may debit any of Borrower's deposit accounts including Account Number
__________ for principal and interest payments or any amounts Borrower owes
Bank. Bank shall notify Borrower when it debits Borrower's accounts. These
debits are not a set-off. Payments received after 12:00 noon Eastern time are
considered received at the opening of business on the next Business Day. When a
payment is due on a day that is not a Business Day, the payment is due the next
Business Day and additional fees or interest, as applicable, shall continue to
accrue.

      2.4 Fees. Borrower shall pay to Bank:

            (a) Facility Fee. A fully earned, non-refundable facility fee of
$31,250.00 due on the Closing Date;

            (b) Letter of Credit Fees. Borrower shall pay to Bank a fee for each
Letter of Credit issued equal to one and three-eights percent (1.375%) of the
face amount of each such Letter of Credit issued by Bank, plus any related out
of pocket expenses and costs. The Letter of Credit fee shall be due and fully
earned upon Borrower's request for each such Letters of Credit; and

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            (c) Bank Expenses. All Bank Expenses (including reasonable
attorneys' fees and expenses incurred through and after the Closing Date) when
due.

      3 CONDITIONS OF LOANS

      3.1 Conditions Precedent to Initial Credit Extension. The obligation of
Bank to make the initial Credit Extension is subject to the condition precedent
that Bank shall have received, in form and substance satisfactory to Bank, the
following:

            (a) this Agreement;

            (b) a certificate of the Secretary of Borrower with respect to
      articles, bylaws, incumbency and resolutions authorizing the execution and
      delivery of this Agreement;

            (c) an intellectual property security agreement

            (d) landlord's waiver;

            (e) an opinion of Borrower's counsel;

            (f) guaranties by the Guarantor(s);

            (g) financing statements (Forms UCC- 1);

            (h) insurance certificate;

            (i) payment of the fees and Bank Expenses then due specified in
      Section 2.4 hereof;

            (j) Certificate of Foreign Qualification (if applicable);

            (k) Certificate of Good Standing/Legal Existence; and

            (l) such other documents, and completion of such other matters, as
      Bank may reasonably deem necessary or appropriate.

      3.2 Conditions Precedent to all Credit Extensions. Bank's obligations to
make each Credit Extension, including the initial Credit Extension, is subject
to the following:

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

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

      4 CREATION OF SECURITY INTEREST

      4.1 Grant of Security Interest. Borrower grants Bank a continuing security
interest in all presently existing and later acquired Collateral to secure all
Obligations and performance of each of Borrower's duties under the Loan
Documents. Any security interest shall be a first priority security interest in
the Collateral. Bank may place a "hold" on any deposit account pledged as
Collateral. Except as disclosed on the Schedule, Borrower is not a party to,

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nor is bound by, any license or other agreement that prohibits or otherwise
restricts Borrower from granting a security interest in Borrower's interest in
such license or agreement or any other property. Without prior notice to Bank,
Borrower shall not enter into, or become bound by, any such license or agreement
which is reasonably likely to have a material impact on Borrower's business or
financial condition. Borrower shall take such steps as Bank requests to obtain
the consent of, or waiver by, any person whose consent or waiver is necessary
for such licenses or contract rights to be deemed "Collateral" and for Bank to
have a security interest in it that might otherwise be restricted or prohibited
by law or by the terms of any such license or agreement, whether now existing or
entered into in the future. If the Agreement is terminated, Bank's lien and
security interest in the Collateral shall continue until Borrower fully
satisfies its Obligations.

      4.2 Concerning Revised Article 9 of the Uniform Commercial Code. In
anticipation of the possible application, in one or more jurisdictions to the
transactions contemplated hereby, of the revised Article 9 of the Uniform
Commercial Code in the form or substantially in the form approved by the
American Law Institute and the National Conference of Commissioners on Uniform
State Law and contained in the 1999 Official Text of the Uniform Commercial Code
("Revised Article 9"), it is hereby agreed that applying the law of any
jurisdiction in which Revised Article 9 is in effect, the Collateral is all
assets of the Borrower, whether or not within the scope of Revised Article 9.
The Collateral shall include, without limitation, the following categories of
assets as defined in Revised Article 9: goods (including inventory, equipment
and any accessions thereto), instruments (including promissory notes),
documents, accounts (including health-care-insurance receivables, and license
fees), chattel paper (whether tangible or electronic), deposit accounts,
letter-of-credit rights (whether or not the letter of credit is evidenced by a
writing), commercial tort claims, securities and all other investment property,
general intangibles (including payment intangibles and software), supporting
obligations and any and all proceeds of any thereof, wherever located, whether
now owned or hereafter acquired. If the Borrower shall at any time, whether or
not Revised Article 9 is in effect in any particular jurisdiction, acquire a
commercial tort claim, as defined in Revised Article 9, the Borrower shall
immediately notify the Bank in a writing signed by the Borrower of the brief
details thereof and grant to the Bank in such writing a security interest
therein and in the proceeds thereof, all upon the terms of this Agreement, with
such writing to be in form and substance satisfactory to the Bank.

      5 REPRESENTATIONS AND WARRANTIES

      Borrower represents and warrants as follows:

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

      The execution, delivery and performance of the Loan Documents have been
duly authorized, and do not conflict with Borrower's organizational documents,
nor constitute an event of default under any material agreement by which
Borrower is bound. Borrower is not in default under any agreement to which or by
which it is bound in which the default could cause a Material Adverse Change.

      5.2 Collateral. Borrower has good title to the Collateral, free of Liens
except Permitted Liens. The Eligible Accounts are bona fide, existing
obligations, and the service or property has been performed or delivered to the
account debtor or its agent for immediate shipment to and unconditional
acceptance by the account debtor. Borrower has no notice of any actual or
imminent Insolvency Proceeding of any account debtor whose accounts are an
Eligible Account in any Borrowing Base Certificate. All Inventory is in all
material respects of good and marketable quality, free from material defects.
Borrower is the sole owner of the Intellectual Property, except for
non-exclusive licenses granted to its customers in the ordinary course of
business. Each Patent is valid and enforceable and no part of the Intellectual
Property has been judged invalid or unenforceable, in whole or in part, and no
claim has been made that any part of the Intellectual Property violates the
rights of any third party.

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      5.3 Litigation. Except as shown in the Schedule, there are no actions or
proceedings pending or, to Borrower's knowledge, threatened by or against
Borrower or any Subsidiary in which an adverse decision could cause a Material
Adverse Change.

      5.4 No Material Adverse Change in Financial Statements. All consolidated
financial statements for Borrower and any Subsidiary delivered to Bank fairly
present in all material respects Borrower's consolidated financial condition and
Borrower's consolidated results of operations. There has not been any material
deterioration in Borrower's consolidated financial condition since the date of
the most recent financial statements submitted to Bank.

      5.5 Solvency. Borrower is able to pay its debts (including trade debts) as
they mature.

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

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

      5.8 Full Disclosure. No representation, warranty or other statement of
Borrower in any certificate or written statement given to Bank contains any
untrue statement of a material fact or omits to state a material fact necessary
to make the statements contained in the certificates or statements not
misleading.

      6 AFFIRMATIVE COVENANTS

      Borrower shall do all of the following:

      6.1 Government Compliance. Borrower shall maintain its and all
Subsidiaries' corporate existence and good standing in its jurisdiction of
incorporation and maintain qualification in each jurisdiction in which the
failure to so qualify could have a material adverse effect on Borrower's
business or operations. Borrower shall comply, and have each Subsidiary comply,
with all laws, ordinances and regulations to which it is subject, noncompliance
with which could have a material adverse effect on Borrower's business or
operations or cause a Material Adverse Change.

      6.2 Financial Statements, Reports, Certificates.

            (a) Borrower shall deliver to Bank: (i) as soon as available, but no
later than forty-five(45) days after the last day of each calendar quarter, a
company prepared consolidated balance sheet and income statement covering
Borrower's consolidated operations during the period, in a form acceptable to
Bank and certified by a Responsible Officer; (ii) as soon as available, but no
later than one hundred twenty (120) days after the end of Borrower's fiscal
year, audited, consolidated financial statements prepared under GAAP,
consistently applied, together with an unqualified opinion on the financial
statements from an independent certified public accounting firm acceptable to
Bank; (iii) within five (5) days of filing, copies of all statements, reports
and notices made available to Borrower's security holders or to any holders of
Subordinated Debt and all reports on Form 10-K, 10-Q and 8-K filed with the
Securities and Exchange Commission; (iv) a prompt report of any legal actions
pending or threatened against Borrower or any Subsidiary that could result in
damages or costs to Borrower or any Subsidiary of One Hundred Thousand Dollars
($100,000.00) or more; (v) prompt notice of any material change in the
composition of the Intellectual Property,

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

            (b) Within thirty (30) days after the last day of each month,
Borrower shall deliver to Bank a Borrowing Base Certificate signed by a
Responsible Officer in the form of Exhibit C, with aged listings of accounts
receivable (by invoice date).

            (c) Within forty (45) days after the last day of each quarter,
Borrower shall deliver to Bank with the quarterly financial statements a
Compliance Certificate signed by a Responsible Officer in the form of Exhibit D.

            (d) Bank has the right to audit Borrower's Accounts at Borrower's
expense, but the audits shall be conducted no more often than once every twelve
(12) months unless an Event of Default has occurred and is continuing, and shall
so audit on or before forty-five (45) days from the Closing Date.

      6.3 Inventory; Returns. Borrower shall keep all Inventory in good and
marketable condition, free from material defects. Returns and allowances between
Borrower and its account debtors shall follow Borrower's customary practices as
they exist at the Closing Date. Borrower must promptly notify Bank of all
returns, recoveries, disputes and claims that involve more than Fifty Thousand
Dollars ($50,000.00).

      6.4 Taxes. Borrower shall make, and cause each Subsidiary to make, timely
payment of all material federal, state, and local taxes or assessments owing by
Borrower and shall deliver to Bank, on demand, appropriate certificates
attesting to such payments.

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

      6.6 Primary Accounts. Borrower shall maintain its primary depository and
operating accounts with Bank and a majority of the Borrower's cash or
investments in excess of that amount used for Borrower's operations shall be
maintained or administered through the Bank.

      6.7 Financial Covenants.

      Borrower shall maintain as of the last day of each fiscal quarter:

            (a) Quick Ratio. A ratio of Quick Assets to Current Liabilities of
      at least 3.0 to 1.0.

            (b) Profitability. Borrower shall be profitable each fiscal quarter.

      6.8 Registration of Intellectual Property Rights. Borrower shall register
with the United States Copyright Office consistent with sound business practice
(i) any software material to the business of Borrower it has, develops or
acquires, including those in Exhibit A to the Intellectual Property Security
Agreement and additional software rights developed or acquired, including
significant revisions, additions or improvements to the software or revisions,
additions or improvements which significantly improve the functionality of the
software. Borrower shall promptly notify Bank upon Borrower's filing of any
application or registration of any Intellectual Property rights with the United
States Patent and Trademark Office and Borrower shall execute and deliver any
and all instruments and documents as Bank may require to evidence or perfect
Bank's security interest in such application or registration.

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      Borrower shall: (i) protect, defend and maintain the validity and
enforceability of the Intellectual Property; (ii) promptly advise Bank in
writing of material infringements of the Intellectual Property; and (iii) not
allow any Intellectual Property to be abandoned, forfeited or dedicated to the
public except consistent with sound business practice or with Bank's written
consent.

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

      7 NEGATIVE COVENANTS

      Borrower shall not do any of the following without the Bank's prior
written consent:

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

      7.2 Changes in Business, Ownership, Management or Business Locations.
Engage in or permit any of its Subsidiaries to engage in any business other than
the businesses currently engaged in by Borrower or have a material change in its
ownership or management. Borrower shall not, without at least thirty (30) days
prior written notice to Bank, relocate its principal executive office or add any
new offices or business locations, or change its state of formation.

      7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its
Subsidiaries to merge or consolidate, with any other Person, or acquire, or
permit any of its Subsidiaries to acquire, all or substantially all of the
capital stock or property of another Person.

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

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

      7.6 Investments; Distributions. (i) Directly or indirectly acquire or own
any Person, or make any Investment in any Person, other than Permitted
Investments, or permit any of its Subsidiaries to do so; or (ii) pay any
dividends or make any distribution or payment or redeem, retire or purchase any
capital stock.

      7.7 Transactions with Affiliates. Directly or indirectly enter or permit
any material transaction with any Affiliate, except transactions that are in the
ordinary course of Borrower's business, on terms no less favorable to Borrower
than would be obtained in an arm's length transaction with a non-affiliated
Person.

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

      7.9 Compliance. Undertake as one of its important activities extending
credit to purchase or carry margin stock, or use the proceeds of any Advance for
that purpose; fail to meet the minimum funding requirements of ERISA, permit a
Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail
to comply with the Federal Fair Labor Standards Act or violate any other law or
regulation, if the violation could have a material adverse effect on Borrower's
business or operations or cause a Material Adverse Change, or permit any of its
Subsidiaries to do so.

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      7.10 Investment Company. Become an "investment company" or a company
controlled by an "investment company", under the Investment Company Act of 1940.

      8 EVENTS OF DEFAULT

      Any one of the following is an Event of Default:

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

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

      8.3 Material Adverse Change. A Material Adverse Change occurs;

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

      8.5 Insolvency. (i) Borrower becomes insolvent; (ii) Borrower begins an
Insolvency Proceeding; or (iii) an Insolvency Proceeding is begun against
Borrower and not dismissed or stayed within forty-five (45) days (but no Credit
Extensions shall be made before any Insolvency Proceeding is dismissed);

      8.6 Other Agreements. If there is a default in any agreement to which
Borrower is a party with a third party or parties resulting in a right by such
third party or parties, whether or not exercised, to accelerate the maturity of
any Indebtedness in an amount in excess of One Hundred Thousand Dollars
($100,000) or that could result in a Material Adverse Change;

      8.7 Judgments. If a judgment or judgments for the payment of money in an
amount, individually or in the aggregate, of at least Two Hundred Thousand
Dollars ($200,000) shall be rendered against Borrower and shall remain
unsatisfied and unstayed for a period of thirty (30) days (provided that no
Credit Extensions will be made prior to the satisfaction or stay of such
judgment);

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

      8.9 Guaranty. Any guaranty of any Obligations ceases for any reason to be
in full force or any Guarantor does not perform any obligation under any
guaranty of the Obligations, or any material misrepresentation or material
misstatement exists now or later in any warranty or representation in any
guaranty of the Obligations or in any certificate delivered to Bank in
connection with the guaranty, or any circumstance described in Sections 8.4, 8.5
or 8.7 occurs to any Guarantor.

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      9 BANK'S RIGHTS AND REMEDIES

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

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

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

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

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

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

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

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

      9.2 Power of Attorney. Borrower hereby irrevocably appoints Bank as its
lawful attorney-in-fact, to be effective upon the occurrence and during the
continuance of an Event of Default, to: (i) endorse Borrower's name on any
checks or other forms of payment or security; (ii) sign Borrower's name on any
invoice or bill of lading for any Account or drafts against account debtors;
(iii) settle and adjust disputes and claims about the Accounts directly with
account debtors, for amounts and on terms Bank determines reasonable; (iv) make,
settle, and adjust all claims under Borrower's insurance policies; and (v)
transfer the Collateral into the name of Bank or a third party as the Code
permits. Borrower hereby appoints Bank its power of attorney to sign Borrower's
name on any documents necessary to perfect or continue the perfection of any
security interest regardless of whether an Event of Default has occurred until
all Obligations have been satisfied in full and Bank is under no further
obligation to make Credit Extensions hereunder. Bank's foregoing appointment as
Borrower's attorney in fact, and all of Bank's rights and powers, coupled with
an interest, are irrevocable until all Obligations have been fully repaid and
performed and Bank's obligation to provide Credit Extensions terminates.

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

      9.4 Bank Expenses. If Borrower fails to obtain insurance as required under
Section 6.5 or to pay any amount or furnish any required proof of payment to
third persons and the Bank, Bank may make all or part of the

                                        9
<PAGE>

payment or obtain such insurance policies required in Section 6.5, and take any
action under the policies Bank deems prudent. Any amounts paid by Bank as
provided herein are Bank Expenses and are immediately due and payable, bearing
interest at the then applicable rate and secured by the Collateral. No payments
by Bank are deemed an agreement to make similar payments in the future or Bank's
waiver of any Event of Default.

      9.5 Bank's Liability for Collateral. So long as the Bank complies with
reasonable banking practices regarding the safekeeping of collateral, the Bank
shall not be liable or responsible for: (a) the safekeeping of the Collateral;
(b) any loss or damage to the Collateral; (c) any diminution in the value of the
Collateral; or (d) any act or, default of any carrier, warehouseman, bailee, or
other person. Borrower bears all risk of loss, damage or destruction of the
Collateral.

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

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

      10 NOTICES

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

                   If to Borrower:  Art Technology Group, Inc.
                                    25 First Street
                                    Cambridge, Massachusetts 02141
                                    Attn: ______________________
                                    FAX: ____________________________

                   If to Bank:      Silicon Valley Bank
                                    40 William Street
                                    Wellesley, Massachusetts 02481
                                    Attn: Mr. Michael J. Tramack
                                    FAX: (781) 431-9906

                   with a copy to:  Riemer & Braunstein LLP
                                    Three Center Plaza
                                    Boston, Massachusetts 02108
                                    Atta: David A. Ephraim. Esquire
                                    FAX: (617) 880-3456

      11 CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

      Massachusetts law governs the Loan Documents without regard to principles
of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction
of the State and Federal courts in Massachusetts; provided, however, that if for
any reason Bank cannot avail itself of such courts in the Commonwealth of
Massachusetts, Borrower accepts jurisdiction of the courts and venue in Santa
Clara County, California.

                                       10
<PAGE>

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

      12 GENERAL PROVISIONS

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

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

      12.3 Time of Essence. Time is of the essence for the performance of all
Obligations in this Agreement.

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

      12.5 Amendments in Writing, Integration. All amendments to this Agreement
must be in writing signed by both Bank and Borrower. This Agreement and the Loan
Documents represent the entire agreement about this subject matter, and
supersedes prior or contemporaneous negotiations or agreements. All prior or
contemporaneous agreements, understandings, representations, warranties, and
negotiations between the parties about the subject matter of this Agreement and
the Loan Documents merge into this Agreement and the Loan Documents.

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

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

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

      13 DEFINITIONS

      13.1 Definitions.

                                       11
<PAGE>

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

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

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

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

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

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

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

      "Closing Date" is the date of this Agreement.

      "Code" is the Uniform Commercial Code as adopted in Massachusetts, as
amended and in effect from time to time.

      "Collateral" is any and all collateral granted by the Borrower to Bank,
now, or in the future, including, without limitation, the property described on
Exhibit A.

      "Committed Revolving Line" is an Advance or Advances of up to Twelve
Million Five Hundred Thousand Dollars ($12,500,000.00).

      "Commitment Termination Date" shall be twelve months from the Closing
Date.

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

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

                                       12
<PAGE>

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

      "Current Liabilities" are the aggregate amount of Borrower's Total
Liabilities which mature within one (1) year (excluding all deferred revenues),
which shall include, without limitation, all obligations and liabilities of
Borrower to Bank.

      "Eligible Accounts" are Accounts in the ordinary course of Borrower's
business that meet all Borrower's representations and warranties in Section 5.2;
but Bank may change eligibility standards by giving Borrower thirty (30) days
prior written notice. Unless Bank agrees otherwise in writing, Eligible Accounts
shall not include:

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

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

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

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

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

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

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

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

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

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

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

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

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

      "GAAP" is generally accepted accounting principles.

      "Guarantor" is any present or future guarantor of the Obligations,
including ATG Securities Corporation.

                                       13
<PAGE>

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

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

      "Intellectual Property" is:

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

            (b) Any trade secrets and any Intellectual Property Rights in
      computer software and computer software products now or later existing,
      created, acquired or held;

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

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

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

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

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

      "Letter of Credit" means a letter of credit or similar undertaking issued
by Bank pursuant to Section 2.1.2.

      "Letter of Credit Reserve" has the meaning set forth in Section 2.1.2.

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

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

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

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

      "Maturity Date" means the date which is one day prior to one (1) year from
the Closing Date.

                                       14
<PAGE>

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

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

      "Permitted Indebtedness" is:

            (a) Borrower's indebtedness to Bank under this Agreement or the Loan
      Documents;

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

            (c) Subordinated Debt;

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

            (e) Indebtedness secured by Permitted Liens.

      "Permitted Investments" are:

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

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

      "Permitted Liens" are:

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

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

            (d) Leases or subleases and licenses or sublicenses granted in the
      ordinary course of Borrower's business, if the leases, subleases, licenses
      and sublicenses do not prohibit granting Bank a security interest;

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

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

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

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

                                       15
<PAGE>

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

      "Schedule" is any attached schedule of exceptions.

      "Subordinated Debt" is debt incurred by Borrower subordinated to
Borrower's debt to Bank (pursuant to a subordination agreement entered into
between the Bank, the Borrower and the subordinated creditor).

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

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

      "Total Liabilities" is on any day, obligations that should, under GAAP, be
classified as liabilities on Borrower's consolidated balance sheet, including
all Indebtedness.

                                       16
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as a sealed instrument under the laws of the Commonwealth of
Massachusetts as of the date first above written.

BORROWER:

ART TECHNOLOGY GROUP, INC.

By  /s/ Ann Brady
    -----------------------------------------------
Name: Ann Brady
      ---------------------------------------------
Title: CFO
       --------------------------------------------

BANK:

SILICON VALLEY BANK, d/b/a
SILICON VALLEY EAST

By  _______________________________________________

Name: _____________________________________________

Title: ____________________________________________

SILICON VALLEY BANK

By  _______________________________________________

Name: _____________________________________________

Title: ____________________________________________
       (Signed in Santa Clara County, California)

513376.10(56l20/__)

                                       17
<PAGE>

                                    EXHIBIT A

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

      All goods, equipment, inventory, contract rights, trademarks,
servicemarks, trade styles, trade names, patents, patent applications, leases,
license agreements, franchise agreements, general intangibles, accounts,
documents, instruments, chattel paper, cash, deposit accounts, fixtures, letters
of credit, investment property, and financial assets, whether now owned or
hereafter acquired, wherever located; and

      Any copyright rights, copyright applications, copyright registrations and
like protections in each work of authorship and derivative work, whether
published or unpublished, now owned or later acquired; any patents, trademarks,
service marks and applications therefor; any trade secret rights, including any
rights to unpatented inventions, know-how, operating manuals, license rights and
agreements and confidential information, now owned or hereafter acquired; or any
claims for damages by way of any past, present and future infringement of any of
the foregoing; and

      All Borrower's Books relating to the foregoing and any and all claims,
rights and interests in any of the above and all substitutions for, additions,
attachments, accessories, accessions and improvements to and replacements,
products, proceeds and insurance proceeds of any or all of the foregoing.

                                       18
<PAGE>

                                    EXHIBIT B

                   LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM
              DEADLINE FOR SAME DAY PROCESSING IS 3:00 P.M., E.S.T.

TO: CENTRAL CLIENT SERVICE DIVISION              DATE:
                                                       -----------------------

FAX#: (781) 431-0755                             TIME:
                                                       -----------------------

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

FROM:      ART TECHNOLOGY GROUP. INC.
     -----------------------------------------------------------------------
                             CLIENT NAME (BORROWER)

REQUESTED BY:
              --------------------------------------------------------------
                            AUTHORIZED SIGNER'S NAME

AUTHORIZED SIGNATURE:
                     -------------------------------------------------------

PHONE NUMBER:
             ---------------------------------------------------------------

FROM ACCOUNT #                       TO ACCOUNT #
               -------------------                --------------------------

REQUESTED TRANSACTION TYPE           REQUEST DOLLAR AMOUNT

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

OTHER INSTRUCTIONS:
                   ---------------------------------------------------------

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

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

--------------------------------------------------------------------------------
                                  BANK USE ONLY

TELEPHONE REQUEST:

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

-----------------------------------------------         ---------------------
          Authorized Requester                          Phone #

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

                                       19
<PAGE>

                                    EXHIBIT C
                           BORROWING BASE CERTIFICATE

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

Borrower:                 Lender: Silicon Valley Bank

Commitment Amount:        $12,500,000.00

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

ACCOUNTS RECEIVABLE
1.   Accounts Receivable Book Value as of_______________        $______________
2.   Additions (please explain on reverse)                      $______________
3.   TOTAL ACCOUNTS RECEIVABLE                                  $______________

ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
4.   Amounts over 90 days due                                   $______________
5.   Balance of 50% over 90 day accounts                        $______________
6.   Credit balances over 90 days                               $______________
7.   Concentration Limits                                       $______________
8.   Foreign Accounts                                           $______________
9.   Governmental Accounts                                      $______________
10.  Contra Accounts                                            $______________
11.  Promotion or Demo Accounts                                 $______________
12.  Intercompany/Employee Accounts                             $______________
13.  Other (please explain on reverse)                          $______________
14.  TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS                       $______________
15.  Eligible Accounts (#3 minus #14)                           $______________
16.  LOAN VALUE OF ACCOUNTS (80% of #15)                        $______________

BALANCES
17.  Maximum Loan Amount                                        $12,500,000.00
18.  Total Funds Available (Lesser of #19 or #16)               $______________
19.  Present balance owing on Line of Credit                    $______________
20.  Outstanding under Sublimits (Letters of Credit)            $______________
23.  RESERVE POSITION (#20 minus #21 and #22)                   $______________

The undersigned represents and warrants that this is true, complete and correct,
and that the information in this Borrowing Base Certificate complies with the
representations and warranties in the Loan and Security Agreement between the
undersigned and Silicon Valley Bank.
Authorized Signer

                                      ------------------------------------------
COMMENTS:                                             BANK USE ONLY

By: _____________________________     Received by: _____________________________
          Authorized Signer                              AUTHORIZED SIGNER

                                      Date:  ___________________________________

                                      Verified: ________________________________
                                                        AUTHORIZED SIGNER

                                      Date: ____________________________________

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

                                       20
<PAGE>

                                    EXHIBIT D
                             COMPLIANCE CERTIFICATE

TO:   SILICON VALLEY BANK

FROM: ART TECHNOLOGY GROUP, INC.

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

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

<TABLE>
<CAPTION>
      Reporting Covenant                              Required                                   Complies
      ------------------                              --------                                   --------
      <S>                                             <C>                                        <C>
      Quarterly financial statements with CC          Quarterly within 45 days                   Yes No
      Annual (CPA Audited)                            FYE within 120 days                        Yes No
      l0-Q, 10-K and 8-K                              Within 5 days after filing with SEC        Yes No
      BBC & A/R Agings                                Monthly within 30 days                     Yes No

<CAPTION>
      Financial Covenant                              Required                       Actual      Complies
      ------------------                              --------                       ------      --------
      <S>                                             <C>                          <C>           <C>
      Maintain on a Quarterly Basis:

          Minimum Quick Ratio                         3.0:1.0                      _____:1.0     Yes No

          Profitability:                              $1.00                        $________     Yes No
</TABLE>

Comments Regarding Exceptions: See Attached.    --------------------------------
                                                         BANK USE ONLY
Sincerely,
                                                Received by: ___________________
__________________________                                    AUTHORIZED SIGNER
SIGNATURE
                                                Date: __________________________

__________________________                      Verified: ______________________
TITLE                                                        AUTHORIZED SIGNER

                                                Date: __________________________
__________________________
DATE                                            --------------------------------

                                       21<PAGE>

                                                                   Exhibit 10.13

                                     [LOGO]
                               Silicon Valley Bank
                            3003 Tasman Drive/HF 170
                              Santa Clara, CA 95054
                       (408) 654-1000 - Fax (408) 980-6410

      This NON-RECOURSE RECEIVABLES PURCHASE AGREEMENT (the "Agreement"), dated
as of September 27, 2000, is between Silicon Valley Bank, ("Buyer") and ART
TECHNOLOGY GROUP, INC. a Delaware corporation, ("Seller"), with its chief
executive office at:

            Street Address:      25 First Street
            City:                Cambridge
            County:
            State:               Massachusetts
            Zip code:            02144
            Fax:                 (617)386-1111

      1. Definitions. In this Agreement:

            1.1 "Payment" is when Buyer has received payments equal to the Total
Purchased Receivables.

            1.2 "Purchased Receivables" is all accounts, receivables, chattel
paper, instruments, contract rights, documents, general intangibles, letters of
credit, drafts, bankers acceptances other rights to payment and all proceeds
arising from the invoices and other agreements on the Schedule.

            1.3 "Related Property" is all returned or rejected goods connected
with the Purchased Receivables or books and records about the Purchased
Receivables or returned or rejected goods; or proceeds from voluntary or
involuntary dispositions, including insurance proceeds.

            1.3 "Schedule" is the attached schedule showing the: Purchase Date,
Due Date, Total Purchased Receivables, Discount Rate, Purchase Price and
Administrative Fee amount.

      2. Purchase and Sale of Receivables.

            2.1 Sale and Purchase. On the Purchase Date, Seller sells and Buyer
buys Seller's right, title, and interest (but none of Sellers obligations) to
payment from any person liable on a Purchased Receivable, ("Account Debtors").

      Each purchase and sale is at Buyer's and Seller's discretion. Buyer will
not (i) pay Seller an aggregate outstanding amount exceeding Ten Million Dollars
($10,000,000.00) or (ii) buy any Purchased Receivable after September 27, 2001
(the "Maturity Date"). Each purchase and sale will be on an assignment form
acceptable to Buyer.

            2.2 Payment of Purchase Price and Late Payment.

                  (a) Payment of Purchase Price. For each Purchased Receivable,
Buyer will pay Seller, on the Purchase Date, the Purchase Price, less the
Administrative Fee and legal fees (if any).

                                       1
<PAGE>

                  (b) Late Payment. If Payment is made after the Due Date, as
listed on the Schedule, then on the earlier of Payment or 90 days, Seller will
also pay Buyer the product of the Discount Rate and the average daily balance of
the unpaid Purchased Receivable multiplied by the number of days between the
scheduled payment date or the earlier of the date of actual payment or 90 days
after the scheduled payment date, divided by 360.

            2.3 Seller may not sell or convey any interest in Related Property
without Buyer's prior written consent. Seller will sign UCC financing statements
and any other instruments or documents to evidence, perfect or protect Buyer's
interests in the Purchased Receivables and Related Property. Seller will deliver
to Buyer all original instruments, chattel paper and documents about Purchased
Receivables and Related Property.

      3. Collections, Payments and Remittances.

            3.1 Application of Payments. All payments for any Purchased
Receivable, received by Seller or Buyer, are Buyer's property.

            3.2 Collection by Seller.

                  (a) Buyer appoints Seller its attorney-in-fact to receive
payments and enforce its rights and designates Seller it's assignee for
collection. Seller will use diligence and commercially reasonable means to
collect Purchased Receivables. Buyer may revoke these appointments at any time.

                  (b) Seller will begin legal proceedings about Purchased
Receivables in its name (as Buyer's assignee for collection or enforcement) or,
with Buyer's prior written consent, in Buyer's name. Seller will not make Buyer
party to any litigation or arbitration without Buyer's written consent.

                  (c) Seller will hold in trust for and give Buyer: (i) all
payments made by Account Debtors, and (ii) all instruments, chattel paper and
other proceeds of the Purchased Receivables.

                  (d) Unless an Event of Repurchase occurs and continues Seller
will remit payments to Buyer on the last business day of each week ("Settlement
Date") starting the week after the Purchase Date. On each Settlement Date Seller
will deliver a report acceptable to Buyer of account activity (including dates
and amounts of payments) and changes for each Purchased Receivable.

            3.3 No Obligation to Take Action. Buyer has a right, but no
obligation, to perform Seller's obligations or to take action on any Purchased
Receivable (including on defaulted Purchased Receivables).

      4. Non-Recourse; Repurchase Obligations.

            4.1 Non-Recourse and Seller's Agreement to Repurchase. Buyer
acquires Purchased Receivables without recourse, except Seller will, at Buyer's
option, repurchase from Buyer any Purchased Receivable for a purchase price
equal to the unpaid portion of any Purchased Receivable:

                  (a) For which there has been any breach of warranty,
representation or covenant in this Agreement; or

                  (b) For which the Account Debtor asserts any discount,
allowance, return, dispute, defense, right of recoupment, right of return,
warranty claim, or short payment.

Seller will reimburse Buyer for Buyer's reasonable attorneys' and professional
fees and expenses and all court costs for collecting Purchased Receivables
and/or enforcing its rights under this Agreement.

                                       2
<PAGE>

            4.2 Payment to Buyer. Seller will pay Buyer in immediately available
funds.

      5. Representations, Warranties and Covenants.

            5.1 Purchased Receivables - Warranties, Representations and
Covenants. Seller represents, warrants and covenants for each Purchased
Receivable:

                  (a) It is the owner with legal right to sell, transfer and
assign it;

                  (b) The correct amount is on the Schedule and is not disputed;

                  (c) No payment is contingent on any obligation or contract,
and it has fulfilled all its obligations as of the Purchase Date;

                  (d) It is based on actual sale and delivery of goods and/or
services rendered, due no later than its Due Date and owing to Seller, it is not
past due or in default, has not been previously sold, assigned, transferred, or
pledged, and is free of any liens, security interests and encumbrances;

                  (e) There are no defenses, offsets, counterclaims or
agreements in which the Account Debtor may claim any deduction or discount;

                  (f) It reasonably believes no Account Debtor is insolvent as
defined in the United States Bankruptcy Code ("US Code") or the California
Uniform Commercial Code ("UCC") and no Account Debtor has filed or had filed
against it a voluntary or involuntary petition for relief under the US Code.;
and

                  (g) No Account Debtor has objected to payment for or the
quality or quantity of the subject of the Purchased Receivable.

            5.2 Additional Warranties. Representations and Covenants. Seller
represents, warrants and covenants:

                  (a) Its name, form of organization, chief executive office,
and the place where the records about all Purchased Receivables are kept is
shown at the beginning of this Agreement and it will give Buyer at least 10 days
prior written notice of changes to its name, organization, chief executive
office or location of records.

                  (b) It has not filed a voluntary petition or had filed against
it an involuntary petition under the US Code and does not anticipate any filing;

                  (c) If Payment of any Purchased Receivable does not occur by
its Due Date then Seller will provide a written report, within 10 days, of the
reasons for the delay.

                  (d) While any Purchased Receivable is outstanding, Seller will
give Buyer copies of all Forms 10-K, 1 0-Q and 8-K (or equivalents) within 5
days of its filing with the Securities and Exchange Commission.

      6. Adjustments. If any Account Debtor asserts a discount, allowance,
return, offset, defense, warranty claim, or the like (an "Adjustment") Seller
will promptly advise Buyer and, with Buyer's approval, resolve the dispute.
Seller will resell any rejected, returned, or recovered personal property for
Buyer, at Seller's expense, with the proceeds payable to Buyer. While Seller has
returned goods that are Buyer's property, Seller will segregate and mark them
"property of Silicon Valley Bank." Buyer owns the Purchased Receivables and
until Payment has the right to take possession of any rejected, returned, or
recovered personal property.

                                       3
<PAGE>

      7. Indemnification.

                  (a) If any Account Debtor is released from any payment
obligation for any Purchased Receivable because of: (i) Seller's act or
omission; or (ii) any of the documentation about the Purchased Receivables which
results in termination of any part of the Account Debtor's obligation for the
Purchased Receivables, then Seller will pay Buyer the lesser of the amount of
the Purchased Receivable not payable or the unpaid portion of the Purchased
Receivable.

                  (b) Seller indemnifies and holds Buyer harmless from any taxes
from this transaction (except Buyer's income taxes) and costs, expenses and
reasonable attorney fees if Buyer promptly notifies it of any taxes of which
Buyer has notice.

      8. Repurchase Events. Any of the following is an Event of Repurchase:

                  (a) Seller fails to pay Buyer any amount when due under
Section 2.2(b), 3.2(c), 3.2(d), 4.1, 7 or 10;

                  (b) An involuntary lien, garnishment, attachment or the like
is issued against or attaches to the Purchased Receivables or Related Property;
and

                  (c) Seller breaches a covenant, agreement, warranty, or
representation in this Agreement and the breach is not cured to Buyer's
satisfaction within 10 days after Buyer gives Seller oral or written notice. A
breach that cannot be cured is an immediate default.

      9. Repurchase Option. When an Event of Repurchase occurs Buyer shall have
a right to require Seller to repurchase all of the affected Purchased
Receivables for a purchase price equal to the amount(s) specified in Section
4.1. Buyer shall also have all rights and remedies under this Agreement and the
law, including those of a secured party under the UCC, and the right to collect,
dispose of, sell, lease or use all Purchased Receivables and Related Property.

      10. Fees, Costs and Expenses. Immediately on demand Seller will pay all
reasonable fees, costs and expenses (including attorney and professional fees)
that Buyer incurs from (a) preparing, negotiating, administering and enforcing
this Agreement or any other agreement, including amendments, waivers or
consents, (b) litigation or disputes relating to the Purchased Receivables, the
Related Property, this Agreement or any other agreement, (c) enforcing rights
against Seller, (d) protecting or enforcing its title to the Purchased
Receivables or its security interest in the Related Property, (e) collecting any
amounts due from Seller or for a Purchased Receivable under a breach of Seller's
representation, warranty or covenant and (f) any bankruptcy case or insolvency
proceeding involving Seller.

      11. Choice of Law, Venue and Jury Trial Waiver. California law governs
this Agreement. Seller and Buyer each submit to the exclusive jurisdiction of
the State and Federal courts in Santa Clara County, California.

SELLER AND BUYER EACH WAIVE ITS RIGHT TO A JURY TRIAL FROM ANY CAUSE OF ACTION
RELATED TO AGREEMENT, INCLUDING CONTRACT, TORT, BREACH OF DUTY OR OTHER CLAIM.
THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER THIS AGREEMENT.
EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.
      12. Notices. Notices or demands by either party about this Agreement must
be in writing and personally delivered or sent by an overnight delivery service,
by certified mail postage prepaid return receipt requested, or by FAX to the
addresses below:

      Seller: ART TECHNOLOGY GROUP, INC. 25 First Street

                                       4
<PAGE>

              Cambridge, MA 02144
              Attn: Chief Financial Officer
              FAX: (617) 386-1111

      Buyer:  Silicon Valley Bank
              3003 Tasman Drive/HF 170
              Santa Clara, CA 95054
              Attn: Credit Manager
              FAX: (408)980-6410

      A party may change notice address by written notice to the other party.

      13. General Provisions.

            13.1 Successors and Assigns. This Agreement binds and is for the
benefit of successors and permitted assigns of each party. Seller may not assign
this Agreement or any rights under it without Buyer's prior written consent
which may be granted or withheld in Buyer's discretion. Buyer may, without the
consent of or notice to Seller, sell, transfer, or grant participation in any
part of Buyer's obligations, rights or benefits under this Agreement.

            13.2 Indemnification. Seller will indemnify, defend and hold
harmless Buyer and its officers, employees, and agents against: (a) obligations,
demands, claims, and liabilities asserted by any other party in connection with
the transactions contemplated by this Agreement; and (b) losses or expenses
incurred, or paid by Seller from or consequential to transactions between Buyer
and Seller (including reasonable attorneys fees and expenses), except for losses
caused by Buyer's gross negligence or willful misconduct.

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

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

            13.5 Amendments in Writing, Integration. All amendments to this
Agreement must be in writing. This Agreement is the entire agreement about this
subject matter and supersedes prior negotiations or agreements.

            13.6 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts and when executed
and delivered are one Agreement.

            13.7 Survival. All covenants, representations and warranties made in
this Agreement continue in full force while any Purchased Receivable amount
remains outstanding. Seller's indemnification obligations survive until all
statutes of limitations for actions that may be brought against Buyer have run.

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

                                       5
<PAGE>

SELLER:     ART TECHNOLOGY GROUP, INC,
            a Delaware corporation

By /s/ Ann Brady
   ------------------------------
Title CFO
     ----------------------------

BUYER:      SILICON VALLEY BANK

By
   ------------------------------
Title
     ----------------------------

                                       6
<PAGE>

                          CORPORATE RESOLUTION TO SELL

I, the Secretary or Assistant Secretary of ART TECHNOLOGY GROUP, INC. (the
"Seller"), certify that:

      The Seller is a Delaware corporation, and

      Attachments 1 and 2 are copies of Seller's Articles of Incorporation and
      Bylaws which are currently effective, and

      At a duly held meeting of Seller's directors at which a quorum was present
      (or by other authorized corporate action) the following resolutions were
      adopted:

            "Resolved that any 1 of the following officers of Seller, whose
            signatures are below:

            Name                        Title                  Signature

            Ann Brady                   CFO                    /s/ Ann Brady
            -----------------           -----------------      -----------------
            Jeet Singh                  CEO                    /s/ Jeet Singh
            -----------------           -----------------      -----------------

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

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

            acting for Seller are authorized to:

            Execute Purchase Agreement. To enter a Purchase Agreement with
            Silicon Valley Bank ("Buyer") on terms agreed by them and Buyer for
            the sale of certain of Seller's accounts receivable and to execute
            renewals, extensions, modifications, refinancings, consolidations or
            substitutions of any accounts receivable and to do other acts and
            things and execute and deliver other documents that they consider
            necessary to carry out the effect of these Resolutions.

            Further Acts. To designate other individuals as authorized to
            request that Buyer purchase additional accounts receivable under the
            Purchase Agreement.

            Further Resolved that:

            any acts authorized by these Resolutions but performed before their
            passage are ratified, and

            these Resolutions remain effective and Buyer may rely on them until
            it receives written notice of their revocation, but that notice will
            not affect any of Seller's agreements or commitments then
            effective."

I also certify that the officers or agents above are duly elected or appointed
by Seller and hold the positions opposite their names and that the their
signatures are true and that the Resolutions are effective and have not been
modified or revoked.

/s/ [ILLEGIBLE]
--------------------------------------------                     ---------------
(signature) Assistant Secretary or Secretary                     Date
<PAGE>

                        SCHEDULE DATED September 29, 2000
                                       TO
                   NON-RECOURSE RECEIVABLES PURCHASE AGREEMENT
                         DATED AS OF September 27, 2000

Seller:                  Art Technology Group, Inc.

Buyer                    Silicon Valley Bank

Purchase Date:           September 29, 2000

Due Date:                45 days from Purchase Date

Total Purchased
Receivables:             $9,733,972.00 (See list of Receivables total)

Discount Rate:           10.5%

Purchase Price           $9,606,213.62 (is 98.69% of the Total Purchased
                         Receivables which is the Straight Discount of the Total
                         Purchased Receivables discounted from the Due Date to
                         the Purchase Date at the Discount Rate.

Administrative Fee:      0.375%

Seller warrants and represents that (a) its warranties and representations in
the Agreement are true and correct as of the date of this Schedule and (b) no
Event of Repurchase has occurred under the Agreement.

Seller:                  Art Technology Group Inc.

By:                      /s/ Jeet Singh
                         -------------------------------      [LOGO]

Print Name/Title:        Jeet Singh, CEO
                         -------------------------------

Buyer:                   SILICON VALLEY BANK

By:
                         -------------------------------

Print Name/Title:
                         -------------------------------

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