Document:

<PAGE>

                                                                   Exhibit 10.16

                            SECURED PROMISSORY NOTE

                                    $520,000

                            San Francisco, California
                                 August 14, 2000

          FOR VALUE RECEIVED, Eric Borrmann (the "Borrower"), hereby promises to
pay to the order of Plumtree Software, Inc., a California corporation (the
"Lender"), the principal sum of Five Hundred Twenty Thousand Dollars ($520,000),
in lawful money of the United States of America, on August 13, 2005 or when
demanded pursuant to Section 6 hereof (the "Repayment Date"), together with
accrued and unpaid interest thereon from the date hereof.

          1.   Interest Rate. The outstanding principal amount of this Note,
together with all accrued and unpaid interest thereon, shall bear interest at a
rate per annum equal to six percent (6.0%).

          2.   Interest Payments. Interest payments on the Note shall be payable
annually on July 1 of each year through the Repayment Date. Interest shall be
calculated on the basis of a year comprised of twelve (12) thirty (30) day
months. Each payment on this Note shall be credited first to interest on past
due interest, then to past due interest, then to accrued interest and then to
principal.

          3.   Method of Payment. All payments hereunder shall be made to
Lender, Plumtree Software, Inc., 500 Sansome Street, San Francisco, CA 94111, or
at such other place, or by such other means, as the Lender shall designate to
the Borrower in writing. If any payment of principal or interest on this Note is
due on a day which is not a Business Day, such payment shall be due on the next
succeeding Business Day, and such extension of time shall be taken into account
in calculating the amount of interest payable under this Note. "Business Day"
means any day other than a Saturday, Sunday or legal holiday in the State of
California.

          4.   Prepayment. The Borrower shall have the right to prepay the
principal amount hereof in full or in part, together with all accrued interest
on the amount prepaid to the date of such prepayment, at any time without
penalty.

          5.   Security. Pursuant to the Security and Pledge Agreement, dated as
of the date hereof (the "Security Agreement"), by and between the Lender and the
Borrower, the obligations of the Borrower hereunder are secured by the
Collateral (as defined in the Security Agreement), and the holder of this Note
is

                                       1

<PAGE>

entitled to the Proceeds (as defined in the Security Agreement), but not the
voting rights, of the Collateral.

          6.   Events of Default.

               (a)  Each of the following shall constitute an event of default
("Event of Default") hereunder: (i) the Borrower's failure to pay, within
fifteen (15) days after the date when such payment is due, any payment of
principal or interest on the Note; and (ii) the Borrower's failure to observe or
perform any covenant or agreement contained in the Note;

               (b)  Upon the occurrence of any Event of Default, the holder of
this Note may, by notice in writing to the Borrower, declare this Note and the
principal of and accrued interest on this Note and all other charges owing to
the Lender to be, and the same shall upon such notice forthwith become, due and
payable. Upon the occurrence of an Event of Default, the holder of this Note,
may, in addition to all rights and remedies available to it at law, exercise any
or all of its rights under the Security Agreement.

          7.   Recourse. In addition to recourse against the Collateral as
provided in the Security Agreement, the Lender shall be entitled to recourse
against the Borrower for the payment of any principal of or interest on the Note
or for any claim based hereon (including costs of collection).

          8.   Payable Upon Demand. The holder of this Note shall have the
right, at its option, by notice in writing to the Borrower, to declare the
entire unpaid principal balance of this Note, irrespective of the maturity date
of this Note, together with accrued interest on this Note and any other charges
owing to the Lender, and the same shall upon such notice forthwith become, due
and payable.

          9.   Costs of Collection. Upon the failure of the Borrower to pay any
amount due hereunder as and when due (taking into account the additional fifteen
(15) days provided in section 5 of the Security Agreement), the Borrower shall
pay on demand any reasonable costs and expenses incurred by the holder hereof in
connection with the collection of any outstanding principal balance and interest
accrued hereunder, and in connection with the enforcement of any rights or
remedies provided for pursuant to this Note and the Security Agreement. If not
paid on demand, all such costs and expenses automatically shall be added to the
remaining principal balance hereunder as of the date immediately following the
date of such demand.

          10.  Waiver. The Borrower hereby waives any right it might otherwise
have to require notice or acceptance by any other person of its obligations

                                       2

<PAGE>

or liabilities under this Note which are unconditional and absolute and waives
diligence, presentment, demand of payment, protest and notice with respect to
all of the obligations of the Borrower under this Note and with respect to any
action under this Note and all other notices and demands whatsoever, except as
specifically provided for in this Note. This Note may be amended, and the
observance of any term of this Note may be waived, with (and only with) the
written consent of the Lender.

          11. Governing Law. This Note shall be governed by and construed in
accordance with the laws of the State of California.

          12. Assignment or Pledge of Note. The Lender shall promptly notify the
Borrower of any endorsement, assignment, pledge or hypothecation of this Note to
a person not affiliated with the Lender.

          13. Loss Mutilation, Etc. Upon notice from the holder of this Note to
the Borrower of the loss, theft, destruction or mutilation of this Note, and
upon receipt of an indemnity reasonably satisfactory to the Borrower from the
holder of this Note or, in the case of mutilation hereof, upon surrender of the
mutilated Note, the Borrower will make and deliver a new note of like tenor in
lieu of this Note.

          14. Notices. All notices and other communications required or
permitted under this Note shall be in writing and shall be personally delivered
or sent by certified first class United States mail, postage prepaid, return
receipt requested, and if mailed, shall be deemed to have been received on the
third business day after deposit in the mail, addressed to the Lender, Plumtree
Software, Inc., 500 Sansome Street, San Francisco, CA 94111, Attention: Chief
Financial Officer, or to the Borrower at the address set forth below the
Borrower's signature. Notice of any change of either party's address shall be
given by written notice in the manner set forth in this paragraph.

                                       3

<PAGE>

          IN WITNESS WHEREOF, The Borrower has executed this Note on the date
first above written.

                                            BORROWER:

                                            /s/ Eric Borrmann
                                            ----------------------------------

                                                Eric Borrmann
                                            ----------------------------------
                                            (Print or Type Name)

                                        4<PAGE>

                                                                   EXHIBIT 10.17

                         SECURITY AND PLEDGE AGREEMENT

          SECURITY AND PLEDGE AGREEMENT, dated as of August 14, 2000 (the
"Agreement"), by and between Eric Borrmann (the "Pledgor"), and Plumtree
Software, Inc., a California corporation (the "Pledgee").

          WHEREAS, in consideration for the Pledgee's loan of $520,000 to the
Pledgor, the Pledgor is delivering to the Pledgee a duly executed promissory
note, dated the date hereof (such note as it may be amended, modified or
supplemented from time to time together with any replacement thereof, the
"Note"), in the principal amount of $520,000 in favor of the Pledgee; and

          WHEREAS, the Pledgor has agreed to pledge the Pledged Shares (as
defined below) and the Proceeds (as defined below) to the Pledgee to secure the
Pledgor's obligations under the Note.

          NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

          1.   Grant of Security Interest in Collateral. The Pledgor hereby
grants to the Pledgee, as security for all present and future obligations and
liabilities of all kinds of the Pledgor to the Pledgee under the Note and this
Agreement (collectively referred to as the "Obligations"), a first priority
security interest in the following described property (collectively referred to
as the "Collateral"):

               (a)  Two Hundred Thousand (200,000) shares of Plumtree Software,
Inc. voting common stock, par value $.01 per share (the "Pledged Shares"), as
more fully described in Schedule 1 hereto, and the certificates representing the
Pledged Shares and all of the Pledgor's rights and privileges with respect
thereto, together with stock powers executed in blank, each of which has been
delivered to the Pledgee concurrently with the execution hereof; and

               (b)  the proceeds and accessions of the Pledged Shares (the
"Proceeds").

          2.   Pledgor's Covenants.

               (a)  The Pledgor agrees hereafter not to encumber or grant a
security interest in or a lien or other encumbrance on the Collateral.

               (b)  The Pledgor agrees not to dispose of any of the Collateral
except in accordance with the terms of this Agreement.

                                       1

<PAGE>

               (c)  The Pledgor agrees: (i) at any time and from time to time,
upon request of the Pledgee, to give, execute, file and/or record any notice,
financing statement, continuation statement, instrument, document or agreement
that the Pledgee shall consider reasonably necessary or desirable to create,
preserve, continue, perfect or validate any security interest granted hereunder
or which the Pledgee may consider reasonably necessary or desirable to exercise
or enforce its rights hereunder with respect to such security interest; (ii] to
give the Pledgee notice of any litigation filed or claim asserted against the
Pledgor relating to or potentially affecting the Collateral; (iii) if requested
by the Pledgee (and without affecting the validity or enforcecability of any
other provisions hereof, including Section 3 herein), to receive and collect the
Proceeds, in trust and as the property of the Pledgee, and to immediately
endorse as appropriate and deliver such Proceeds to the Pledgee when requested
by the Pledgee in the exact form in which they are received; (iv) not to
commingle the Proceeds or collections thereunder with other property; (v} to
keep complete and accurate records regarding all of the Proceeds; (vi) to
provide any service and do other acts or things necessary to keep the Collateral
and the Proceeds free and clear of all defenses, rights of offset and
counterclaim; and (vii) to use any net, after-tax Proceeds to pay principal and
interest on the Note, with payments to be credited first to interest on past due
interest, then to past due interest, then to accrued interest and then to
principal.

               (d)  The Pledgor agrees to: (i) pay promptly the Obligations
secured hereby when due; (ii) indemnify the Pledgee against all loss, claims,
demands and liabilities of every kind arising from the Collateral and the
transactions and other agreements and undertakings contemplated hereby; and
(iii) Pay all expenses, including reasonable attorneys' fees, incurred by the
Pledgee in the preservation, realization, enforcement and exercise of its
rights, powers and remedies hereunder.

          3.   Payment of Taxes, Charges, Liens and Assessments. The Pledgor
agrees to pay, prior to delinquency, all taxes, charges, liens and assessments
against the Collateral and the Proceeds, and upon the failure of the Pledgor to
do so, the Pledgee, at its option, may pay any of them. Any such payments made
by the Pledgee shall be obligations of the Pledgor to the Pledgee, due and
payable immediately without demand and shall be secured by the Collateral and
the Proceeds, subject to all of the terms and conditions of this Agreement.

          4.   Powers of Pledgee. The Pledgor appoints the Pledgee his true
attorney in fact to perform any of the following powers, which are coupled with
an interest, are irrevocable until termination of this Agreement and may be
exercised from time to time by the Pledgee's officers and employees, or any of
them, whether or not the Pledgor is in default: (a) to perform any obligations
of the Pledgor hereunder in the Pledgor's name or otherwise; (b) to give notice
of Pledgee's right

                                       2

<PAGE>

under the Collateral to enforce the same; (c) to release security; (d) to resort
to security; (e) to prepare, execute, file, record or deliver notes,
assignments, schedules, designation statements, financing statements,
continuation statements, termination statements, statements of assignment,
applications for registration or like papers to perfect, preserve or release the
Pledgee's interest in the Collateral; (f) to verify facts concerning the
Collateral by inquiry of obligors thereon, or otherwise, in its own name or
fictitious name; (g) after an Event of Default, to endorse, collect, deliver and
receive payment under instruments for the payment of money constituting or
relating to the Collateral; (h) after an Event of Default, to preserve or
release the interest evidenced by chattel paper to which the Pledgee is entitled
hereunder and to endorse and deliver evidences of title incidental thereto; (i)
after an Event of Default, to exercise all rights, powers and remedies which the
Pledgor would have, but for this Agreement, under all Collateral subject to this
Agreement; and (j) to do all acts and things and execute all documents in the
name of the Pledgor otherwise, deemed by the Pledgee as necessary, proper and
convenient in connection with the preservation, perfection or enforcement of its
rights hereunder.

          5.   Events of Default: Remedies.

               (a)  Each of the following shall constitute an event of default
("Event of Default") hereunder: (i) the Pledgor's failure to pay, within fifteen
(15) days after the date when such payment is due, any payment of principal or
interest on the Note; or (ii) the Pledgor's failure to observe or perform any
covenant or agreement contained in the Note; and (iii) the Pledgor's violation
of any of the transfer restrictions contained in the Certificate of
Incorporation of Plum Creek Manufacturing Holding Company, Inc.

               (b)  In case an Event of Default shall have occurred and be
continuing, the Pledgee shall be entitled to exercise all of the rights, powers
and remedies (whether vested in it by this Agreement, the Note or by law and
including without limitation, all rights and remedies of a secured party of a
debtor in default under the Uniform Commercial Code as in force in the State of
California) for the protection and enforcement of its rights in respect of the
Collateral. In addition to recourse against the Collateral as provided in this
Agreement, the Pledgee shall be entitled to recourse against the Pledgor for the
payment of any principal of or interest on the Note or for any claim based
thereon (including costs of collection).

          6.   No Waiver. The failure of the Pledgee to exercise any right or
remedy under this Agreement or the Note, or delay by the Pledgee in exercising
same, will not operate as a waiver thereof. No waiver by the Pledgee will be
effective unless and until it is in writing and signed by the Pledgee. No waiver
of any condition or performance will operate as a waiver of any subsequent
condition or

                                        3

<PAGE>

obligation. The Pledgee shall have no obligation to resort to the Collateral or
any other security which is or may become available to it.

          7.   Miscellaneous.

               (a) This Agreement, any amendments or replacement hereof, and the
legality, validity and performance of the terms hereof, shall be governed by and
enforced and construed in accordance with the laws of the State of California
without regard to conflicts of laws and principles thereof.

               (b) This Agreement and the rights, powers and duties set forth
herein shall be binding upon the Pledgor, its agents, representatives and
successors and shall inure to the benefit of the Pledgee and its successors and
assigns and, in the event of any transfer or assignment of rights by the
Pledgee, the rights and privileges herein conferred upon the Pledgee shall
automatically extend to and be vested in such transferee or assignee, all
subject to the terms and conditions hereof. This Agreement and the rights and
privileges herein conferred upon the Pledgee may be assigned by the Pledgee
without the consent of the Pledgor. This Agreement may not be transferred or
assigned by the Pledgor without the written consent of the Pledgee.

               (c) In the event that any provision of this Agreement is invalid
or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be modified to conform with such statute or rule of law. Any
provision hereof which may prove invalid or unenforceable under any applicable
law shall not effect the validity or enforceability of any other provisions
hereof.

               (d) Notices required or permitted to be given under this
Agreement shall be in writing and may be delivered personally or sent to a party
by airmail or first class mail, postage prepaid and addressed to such party, as
follows, or to such other address furnished by notice given in accordance with
this paragraph;

          If to the Pledgor:

          John Kunze
          c/o Plumtree Software, Inc.
          500 Sansome Street
          San Francisco, CA 94111

                                       4

<PAGE>

               If to the Pledgee:

               Plumtree Software, Inc.
               500 Sansome Street
               San Francisco, CA 94111
               Attention:   Chief Financial Officer

Any such notice shall be deemed to have been given, (i) if sent by mail, five
(5) days after the date mailed, and (ii) if delivered personally, on the date of
delivery.

                   (e) This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which shall
together constitute one and the same document.

                   (f) This Agreement and the security interest and pledge
hereunder shall terminate upon the full and final performance of all Obligations
of the Pledgor and payment of all indebtedness secured hereby. At such time, the
Pledgee shall promptly reassign to the Pledgor all of the Collateral hereunder
which has not been sold, disposed of, retained or applied by the Pledgee in
accordance with the terms hereof.

                                       5

<PAGE>

                IN WITNESS WHEREOF, the undersigned have caused this Agreement
to be executed as of the date first written above.

                                                      PLEDGOR:

                                                      /s/ Eric Borrmann
                                                      --------------------------
                                                      Eric Borrmann

                                                      PLEDGEE:

                                                      PLUMTREE SOFTWARE, INC.

                                                      By: /s/ John Kunze
                                                         -----------------------
                                                      Name: John Kunze
                                                      Title: CEO

<PAGE>

                                   SCHEDULE 1
                                   ----------

                         Description of Pledged Shares

        Certificate Number                        Number of Shares
 -----------------------------------           ----------------------
              C-139                                   200,000

                                       1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]