Document:

<PAGE>   1
                                                                   EXHIBIT 10.15

                          LOAN MODIFICATION AGREEMENT

        This Loan Modification Agreement is entered into as of February 2, 2000,
and effective as of January 10, 2000, by and between Packeteer, Inc.
("Borrower") and Silicon Valley Bank ("Bank").

1.      DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may
be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among
other documents, a Loan and Security Agreement, dated January 19, 1999, as may
be amended from time to time, (the "Domestic Loan Agreement") and an
Export-Import Bank Loan and Security Agreement, dated January 19, 1999, as may
be amended from time to time, (the "Exim Loan Agreement"). The Domestic Loan
Agreement provided for, among other things, a Committed Revolving Line in the
original principal amount of One Million Five Hundred Thousand Dollars
($1,500,000) and the Exim Loan Agreement provided for, among other things, an
Exim Committed Line in the original principal amount of One Million Five Hundred
Thousand Dollars ($1,500,000). In connection with the Exim Loan Agreement,
Borrower will execute concurrently herewith, a Borrower Agreement. Defined terms
used but not otherwise defined herein shall have the same meanings as in the
Loan Agreements.

Hereinafter, all indebtedness owing by Borrower to Bank shall be referred to as
the "Indebtedness."

2.      DESCRIPTION OF COLLATERAL AND GUARANTIES. Repayment of the Indebtedness
is secured by the Collateral as described in the Loan Agreement and an
Intellectual Property Security Agreement dated January 19, 1999. Additionally,
repayment of the Exim Committed Line is guaranteed by the Export Import Bank of
the United States ("EXIM").

Hereinafter, the above-described security documents and guaranties, together
with all other documents securing repayment of the Indebtedness shall be
referred to as the "Security Documents". Hereinafter, the Security Documents,
together with all other documents evidencing or securing the Indebtedness shall
be referred to as the "Existing Loan Documents".

3.      DESCRIPTION OF CHANGE IN TERMS.

        A.   Modification(s) to Domestic Loan Agreement.

             1.   Sub-letter (a) of Section 2.1.1 entitled "Revolving Advances"
                  is hereby amended to read:

                  Bank will make Advances not exceeding the lesser of (A) the
                  Committed Revolving Line minus the Cash Management Services
                  Sublimit or (B) the Borrowing Base. Amounts borrowed under
                  this Section may be repaid and reborrowed during the term of
                  this Agreement.

             2.   The following Section is hereby incorporated:

                  2.1.2 CASH MANAGEMENT SERVICES SUBLIMIT.

                  Borrower may use up to $100,000 for Bank's Cash Management
                  Services, which may include merchant services, direct deposit
                  of payroll, business credit card, and check cashing services
                  identified in the Cash Management Services Agreement (the
                  "Cash Management Services"). All amounts Bank pays for any
                  Cash Management Services will be treated as an Advance under
                  the Committed Revolving Line.

<PAGE>   2

             3.   Section 2.2 entitled "Overadvances" is hereby amended to read:

                  If Borrower's Obligations under Section 2.1.1 exceed the
                  lesser of either (I) the Committed Revolving Line minus the
                  Cash Management Services Sublimit or (ii) the Borrowing Base,
                  Borrower must immediately pay Bank the excess.

             4.   Sub-paragraph (i) of sub-letter (a) of Section 6.2 entitled
                  "Financial Statements, Reports, Certificates" is hereby
                  amended to read:

                  (i)  as soon as available, but not later than five (5) days of
                       filing, with the Securities and Exchange Commission
                       ("SEC"), copies of all statements, reports and notices
                       sent or made available generally by Borrower to its
                       shareholders, or to any holders of subordinated debt and
                       all reports on Form 10Q, 10-K and 8-K.

             5.   Sub-letter (c) of Section 6.2 entitled "Financial Statements,
                  Reports, Certificates" is hereby amended to read:

                  Borrower shall deliver to Bank, as soon as available, but in
                  no event later than five (5) days after filing its 10Q report
                  with SEC, a Compliance Certificate signed by a Responsible
                  Officer.

             6.   Sub-letter (d) of Section 6.2 entitled "Financial Statements,
                  Reports, Certificates" is hereby amended in part to provide
                  that the Collateral audits will be conducted no more often
                  than once per year, provided the aggregate Obligations owing
                  from Borrower to Bank exceed $3,000,000.

             7.   Section 6.7 entitled "Financial Covenants" is hereby amended
                  to read:

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

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

                  (ii) MAXIMUM LOSSES. Borrower may suffer losses, provided such
                       losses do not exceed $12,000,000 in aggregate for the
                       period of October 1, 1999 through September 30, 2000,
                       provided, that no loss in any single quarter to exceed
                       $4,000,000.

             8.   The following terms are hereby amended and/or added to Section
                  13.1 entitled "Definitions":

                  "CASH MANAGEMENT SERVICES" are defined in Section 2.1.2.

                  "COMMITTED REVOLVING LINE" is an Advance of up to $2,500,000.

                  "REVOLVING MATURITY DATE" is January 9, 2001.

<PAGE>   3

        B.   Modification(s) to Exim Loan Agreement.

             1.   Sub-letter (a)of Section 2.1.1 entitled "Revolving Advances"
                  is hereby amended in part to provide that Borrowing Base shall
                  now mean an amount equal to the sum of (i) eighty percent
                  (80%) of Exim Eligible Foreign Accounts plus (ii) fifty
                  percent (50%) of Exim Eligible Foreign Inventory.

             2.   Sub-paragraph (i) of sub-letter (a) of Section 6.2 entitled
                  "Financial Statements, Reports, Certificates" is hereby
                  amended to read:

                       (i) as soon as available, but not later than five (5)
                  days of filing, with the Securities and Exchange Commission
                  ("SEC"), copies of all statements, reports and notices sent or
                  made available generally by Borrower to its shareholders, or
                  to any holders of subordinated debt and all reports on Form
                  10Q, 10-K and 8-K.

             3.   Sub-letter (b) of Section 6.2 entitled "Financial Statements,
                  Reports, Certificates" is hereby amended to read:

                  Borrower shall deliver to Bank, as soon as available, but in
                  no event later than five (5) days after filing its 10Q report
                  with SEC, a Compliance Certificate signed by a Responsible
                  Officer.

             4.   The first sentence of sub-letter (c) of Section 6.2 entitled
                  "Financial Statements, Reports, Certificates" is hereby
                  amended to read:

                       At the time of each request for Advance, Borrower will
                  deliver to Bank a Borrowing Base Certificate current within
                  the past five (5) Business Days and a copy of the Export Order
                  against which Borrower is requesting the Advance, together
                  with aged listings of accounts receivable and accounts
                  payable.

             5.   Section 6.10 entitled "Financial Covenants" is hereby amended
                  to read:

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

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

                  (II) MAXIMUM LOSSES. Borrower may suffer losses, provided such
                       losses do not exceed $12,000,000 in aggregate for the
                       period of October 1, 1999 through September 30, 2000,
                       provided, that no loss in any single quarter to exceed
                       $4,000,000.

             6.   The following terms are hereby amended and/or added to Section
                  13.1 entitled "Definitions":

                  "EXIM COMMITTED LINE" is an Advance of up to $2,500,000.

                  "EXIM MATURITY DATE" is January 9, 2001.

4.      CONSISTENT CHANGES. The Existing Loan Documents are hereby amended
wherever necessary to reflect the changes described above.

5.      PAYMENT OF FEES. Borrower shall pay to Bank a fee in the amount of Six
Thousand Two Hundred Fifty Dollars ($6,250) for the Committed Revolving Line
(the "Domestic Loan Fee") plus a fee in the

<PAGE>   4

amount of Six Thousand Two Hundred Fifty Dollars ($6,250) for the Exim Committed
Line (the "Exim Loan Fee") plus all out-of-pocket expenses. Additionally,
Borrower shall pay any Exim Bank Expenses incurred in connection with the Exim
Guarantee. Notwithstanding the foregoing, any attorney fees or expenses incurred
in connection with this Agreement shall be capped at $5,000 for each credit
facility.

6.      NO DEFENSES OF BORROWER. Borrower (and each guarantor and pledgor
signing below) agrees that, as of the date hereof, it has no defenses against
the obligations to pay any amounts under the Indebtedness.

7.      CONTINUING VALIDITY. Borrower (and each guarantor and pledgor signing
below) understands and agrees that in modifying the existing Indebtedness, Bank
is relying upon Borrower's representations, warranties, and agreements, as set
forth in the Existing Loan Documents. Except as expressly modified pursuant to
this Loan Modification Agreement, the terms of the Existing Loan Documents
remain unchanged and in full force and effect. Bank's agreement to modifications
to the existing Indebtedness pursuant to this Loan Modification Agreement in no
way shall obligate Bank to make any future modifications to the Indebtedness.
Nothing in this Loan Modification Agreement shall constitute a satisfaction of
the Indebtedness. It is the intention of Bank and Borrower to retain as liable
parties all makers and endorsers of Existing Loan Documents, unless the party is
expressly released by Bank in writing. No maker, endorser, or guarantor will be
released by virtue of this Loan Modification Agreement. The terms of this
paragraph apply not only to this Loan Modification Agreement, but also to all
subsequent loan modification agreements.

8.      CONDITIONS. The effectiveness of this Loan Modification Agreement is
conditioned upon:

        1)   Borrower's payment of the Domestic Loan Fee, the Exim Loan Fee and
             any Exim fees incurred in connection with this Agreement; and
        2)   Bank's receipt of a fully executed Borrower Agreement together with
             all Annex's and/or attachments thereto.

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

BORROWER:                              BANK:

PACKETEER, INC.                        SILICON VALLEY BANK

By: /s/ BRETT D. GALLOWAY              By:  /s/ TIMOTHY M. WALSH
   --------------------------------       ---------------------------------
Name:   Brett D. Galloway              Name:    Timothy M. Walsh
     ------------------------------         -------------------------------
Title:  Chief Operating Officer        Title:   Vice President
      -----------------------------          ------------------------------

                                       2
<PAGE>   5

                             COMPLIANCE CERTIFICATE

TO:            SILICON VALLEY BANK
               Credit Department
               3003 Tasman Drive
               Santa Clara, CA  95054

FROM:          PACKETEER, INC.

The undersigned authorized Officer of PACKETEER, INC. ("Borrower"), hereby
certifies that in accordance with the terms and conditions of the Loan
Agreement, the Borrower is in complete compliance for the period ending
____________________ of all required conditions and terms except as noted below.
Attached herewith are the required documents supporting the above certification.
The Officer further certifies that these are prepared in accordance with
Generally Accepted Accounting Principles (GAAP) and are consistent from one
period to the next except as explained in an accompanying letter or footnotes.

  PLEASE INDICATE COMPLIANCE STATUS BY CIRCLING YES/NO UNDER "COMPLIES" COLUMN.

<TABLE>
<CAPTION>
REPORTING COVENANT                            REQUIRED                                  COMPLIES
------------------                            --------                                  --------
<S>                                           <C>                                       <C>
10Q + CC                                      Quarterly within 5 days of filing         YES/NO
10K and 8K                                    FYE within 5 days of filing               YES/NO
Annual (CPA Audited)                          FYE w/in 120 days                         YES/NO
A/R & A/P Agings + BBC (Domestic)             Monthly w/in 20 days                      YES/NO
A/R & A/P Agings, Export Order + BBC (Exim)   With each Advance request and monthly
                                              within 30 days                            YES/NO
Inventory Schedules                           Monthly w/in 30 days                      YES/NO
</TABLE>

<TABLE>
<CAPTION>
FINANCIAL COVENANT                   REQUIRED                   ACTUAL                 COMPLIES
------------------                   --------                   ------                 --------
<S>                                  <C>                        <C>                    <C>

TO BE TESTED QUARTERLY UNLESS OTHERWISE NOTED:

Minimum Adjusted Quick Ratio            2.00:1.00              _____:1.00               YES/NO
Maximum Quarterly Loss                 $4,000,000*             $_________               YES/NO
</TABLE>

*    for any single quarter (3 month periods ending 12/31/99; 3/31/00; 6/30/00;
     and 9/30/00) with a maximum loss of $12,000,000 in the aggregate for the
     period 10/1/99 through 9/30/00

COMMENTS REGARDING FINANCIAL COVENANTS:
                                             ---------------------------------
                                                       BANK USE ONLY

                                             RECEIVED BY:____________________
                                             DATE:________________
                                             VERIFIED BY:____________________
                                             COMPLIANCE STATUS:  YES/NO
                                             ---------------------------------

Very truly yours,

PACKETEER, INC.

By:_____________________________________

Name:___________________________________

Title:_____________________________________

<PAGE>   6
                                                                         ANNEX B

                    EXPORT-IMPORT BANK OF THE UNITED STATES
                       WORKING CAPITAL GUARANTEE PROGRAM

                               BORROWER AGREEMENT

     THIS BORROWER AGREEMENT (this "Agreement") is made and entered into by the
entity identified as Borrower on the signature page hereof ("Borrower") in favor
of the Export-Import Bank of the United States ("Ex-Im Bank") and the
institution identified as Lender on the signature page hereof ("Lender").

                                    RECITALS

     Borrower has requested that Lender establish a Loan Facility in favor of
Borrower for the purposes of providing Borrower with pre-export working capital
to finance the manufacture, production or purchase and subsequent export sale
of Items.

     It is a condition to the establishment of such Loan Facility that Ex-Im
Bank guarantee the payment of ninety percent (90%) of certain credit
accommodations subject to the terms and conditions of a Master Guarantee
Agreement, the Loan Authorization Agreement, and to the extent applicable, the
Delegated Authority Letter Agreement.

     Borrower is executing this Agreement for the benefit of Lender and Ex-Im
Bank in consideration for and as a condition to Lender's establishing the Loan
Facility and Ex-Im Bank's agreement to guarantee such Loan Facility pursuant to
the Master Guarantee Agreement.

     NOW, THEREFORE, Borrower hereby agrees as follows:

                                   ARTICLE I
                                  DEFINITIONS

1.01. Definitions of Terms. As used in this Agreement, including the Recitals
to this Agreement and the Loan Authorization Agreement, the following terms
shall have the following meanings:

     "Accounts Receivable" shall mean all of Borrower's now owned or hereafter
acquired (a) "accounts" (as such term is defined in the UCC), other
receivables, book debts and other forms of obligations, whether arising out of
goods sold or services rendered or from any other transaction; (b) rights in,
to and under all purchase orders or receipts for goods or services; (c) rights
to any goods represented or purported to be represented by any of the foregoing
(including unpaid sellers' rights of rescission, replevin, reclamation and
stoppage in transit and rights to returned, reclaimed or repossessed goods);
(d) moneys due or to become due to such Borrower under all purchase orders and
contracts for the sale of goods or the performance of services or both by

<PAGE>   7

Borrower (whether or not yet earned by performance on the part of Borrower),
including the proceeds of the foregoing; (e) any notes, drafts, letters of
credit, insurance proceeds or other instruments, documents and writings
evidencing or supporting the foregoing; and (f) all collateral security and
guarantees of any kind given by any other Person with respect to any of the
foregoing.

     "Advance Rate" shall mean the rate specified in Section 5(C) of the Loan
Authorization Agreement for each category of Collateral.

     "Business Day" shall mean any day on which the Federal Reserve Bank of New
York is open for business.

     "Buyer" shall mean a Person that has entered into one or more Export
Orders with Borrower.

     "Collateral" shall mean all property and interest in property in or upon
which Lender has been granted a Lien as security for the payment of all the
Loan Facility Obligations including the Collateral identified in Section 6 of
the Loan Authorization Agreement and all products and proceeds (cash and
non-cash) thereof.

     "Commercial Letters of Credit" shall mean those letters of credit subject
to the UCP payable in Dollars and issued or caused to be issued by Lender on
behalf of Borrower under a Loan Facility for the benefit of a supplier(s) of
Borrower in connection with Borrower's purchase of goods or services from the
supplier in support of the export of the Items.

     "Country Limitation Schedule" shall mean the schedule published from time
to time by Ex-Im Bank and provided to Borrower by Lender which sets forth on a
country by country basis whether and under what conditions Ex-Im Bank will
provide coverage for the financing of export transactions to countries listed
therein.

     "Credit Accommodation Amount" shall mean, the sum of (a) the aggregate
outstanding amount of Disbursements and (b) the aggregate outstanding face
amount of Letter of Credit Obligations.

     "Credit Accommodations" shall mean, collectively, Disbursements and
Letter of Credit Obligations.

     "Debarment Regulations" shall mean, collectively, (a) the Governmentwide
Debarment and Suspension (Nonprocurement) regulations (Common Rule), 53 Fed.
Reg. 19204 (May 26, 1988), (b) Subpart 9.4 (Debarment, Suspension and
Ineligibility) of the Federal Acquisition Regulations, 48 C.F.R. 9.400-9.409
and (c) the revised Governmentwide Debarment and Suspension (Nonprocurement)
regulations (Common Rule), 60 Fed. Reg. 33037 (June 26, 1995).

     "Delegated Authority Letter Agreement" shall mean the Delegated Authority
Letter Agreement, if any, between Ex-Im Bank and Lender.

                                       2

<PAGE>   8

     "Disbursement" shall mean, collectively, (a) an advance of a working
capital loan from Lender to Borrower under the Loan Facility, and (b) an
advance to fund a drawing under a Letter of Credit issued or caused to be
issued by lender for the account of Borrower under the Loan Facility.

     "Dollars" or "$" shall mean the lawful currency of the United States.

     "Effective Date" shall mean the date on which (a) the Loan Documents are
executed by Lender and Borrower or the date, if later, on which agreements are
executed by Lender and Borrower adding the Loan Facility to an existing working
capital loan arrangement between Lender and Borrower and (b) all of the
conditions to the making of the initial Credit Accommodations under the Loan
Documents or any amendments thereto have been satisfied.

     "Eligible Export-Related Accounts Receivable" shall mean an Export-Related
Account Receivable which is acceptable to Lender and which is deemed to be
eligible pursuant to the Loan Documents, but in no event shall Eligible
Export-Related Accounts Receivable include any Account Receivable:

     (a)  that does not arise from the sale of Items in the ordinary course of
Borrower's business;

     (b)  that is not subject to a valid, perfected first priority Lien in
favor of lender;

     (c)  as to which any covenant, representation or warranty contained in the
Loan Documents with respect to such Account Receivable has been breached;

     (d)  that is not owned by Borrower or is subject to any right, claim or
interest of another Person other than the Lien in favor of Lender;

     (e)  with respect to which an invoice has not been sent;

     (f)  that arises from the sale of defense articles or defense services;

     (g)  that is due and payable from a Buyer located in a country with which
Ex-Im Bank is prohibited from doing business as designated in the Country
Limitation Schedule;

     (h)  that does not comply with the requirements of the Country Limitation
Schedule;

     (i)  that is due and payable more than one hundred eighty (180) days from
the date of the invoice;

     (j)  that is not paid within sixty (60) calendar days from its original
due date, unless it is insured through Ex-Im Bank export credit insurance for
comprehensive commercial and political risk, or through Ex-Im Bank approved
private insurers for comparable coverage, in which case it is not paid within
ninety (90) calendar days from its due date;

                                       3
<PAGE>   9
     (k)  that arises from a sale of goods to or performance of services for an
employee of Borrowers, a stockholder of Borrower, a subsidiary of Borrower, a
Person with a controlling interest in Borrower or a Person which shares common
controlling ownership with Borrower;

     (l)  that is backed by a letter of credit unless the Items covered by the
subject letter of credit have been shipped;

     (m)  that Lender or Ex-Im Bank, in its reasonable judgment, deems
uncollectible for any reason;

     (n)  that is due and payable in a currency other than Dollars, except as
may be approved in writing by Ex-Im Bank;

     (o)  that is due and payable from a military Buyer, except as may be
approved in writing by Ex-Im Bank;

     (p)  that does not comply with the terms of sale set forth in Section 7 of
the Loan Authorization Agreement;

     (q)  that is due and payable from a Buyer who (i) applies for, suffers, or
consents to the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of all or a substantial part of
its property or calls a meeting of its creditors, (ii) admits in writing its
inability, or is generally unable, to pay its debts as they become due or
ceases operations of its present business, (iii) makes a general assignment for
the benefit of creditors, (iv) commences a voluntary case under any state or
federal bankruptcy laws (as now or hereafter in effect), (v) is adjudicated as
bankrupt or insolvent, (vi) files a petition seeking to take advantage of any
other law providing for the relief of debtors, (vii) acquiesces to, or fails to
have dismissed, any petition which is filed against it in any involuntary case
under such bankruptcy laws, or (viii) takes any action for the purpose of
effecting any of the foregoing;

     (r)  that arises from a bill-and-hold, guaranteed sale, sale-and-return,
sale on approval, consignment or any other repurchase or return basis or is
evidenced by chattel paper;

     (s)  for which the Items giving rise to such Account Receivable have not
been shipped and delivered to and accepted by the Buyer or the services giving
rise to such Account Receivable have not been performed by Borrower and
accepted by the Buyer or the Account Receivable otherwise does not represent a
final sale;

     (t)  that is subject to any offset, deduction, defense, dispute, or
counterclaim or the Buyer is also a creditor or supplier of Borrower or the
Account Receivable is contingent in any respect or for any reason;

     (u)  for which Borrower has made any agreement with the Buyer for any
deduction therefrom, except for discounts or allowances made in the ordinary
course of business for prompt payment, all of which discounts or allowances are
reflected in the calculation of the face value of each respective invoice
related thereto; or

                                       4
<PAGE>   10
     (v)  for which any of the Items giving rise to such Account Receivable
have been returned, rejected or repossessed.

     "Eligible Export-Related Inventory" shall mean Export-Related Inventory
which is acceptable to Lender and which is deemed to be eligible pursuant to
the Loan Documents, but in no event shall Eligible Export-Related Inventory
include any Inventory;

     (a)  that is not subject to a valid, perfected first priority Lien in
favor of Lender;

     (b)  that is located at an address that has not been disclosed to Lender
in writing;

     (c)  that is placed by Borrower on consignment or held by Borrower on
consignment from another Person;

     (d)  that is in the possession of a processor or bailee, or located on
premises leased or subleased to Borrower, or on premises subject to a mortgage
in favor of a Person other than Lender, unless such processor or bailee or
mortgagee or the lessor or sublessor of such premises, as the case may be, has
executed and delivered all documentation which Lender shall require to evidence
the subordination or other limitation or extinguishment of such Person's rights
with respect to such Inventory and Lender's right to gain access thereto;

     (e)  that is produced in violation of the Fair Labor Standards Act or
subject to the "hot goods" provisions contained in 29 US.C. Section 215 or any
successor statute or section;

     (f)  as to which any covenant, representation or warranty with respect to
such Inventory contained in the Loan Documents has been breached;

     (g)  that is not located in the United States;

     (h)  that is demonstration Inventory;

     (i)  that consists of proprietary software (i.e. software designed solely
for Borrower's internal use and not intended for resale);

     (j)  that is damaged, obsolete, returned, defective, recalled or unfit for
further processing;

     (k)  that has been previously exported from the United States;

     (l)  that constitutes defense articles or defense services;

     (m)  that is to be incorporated into Items destined for shipment to a
country as to which Ex-Im Bank is prohibited from doing business as designated
in the Country Limitation Schedule;

     (n)  that is to be incorporated into Items destined for shipment to a
Buyer located in a country in which Ex-Im Bank coverage is not available for
commercial reasons as designated in the County Limitation Schedule, unless and
only to the extent that such Items are to be sold to such country on terms of a
letter of credit confirmed by a bank acceptable to Ex-Im Bank; or

                                       5
<PAGE>   11
      (o) that is to be incorporated into Items whose sale would result in an
Account Receivable which would not be an Eligible Export-Related Account
Receivable.

      "Eligible Person" shall mean a sole proprietorship, partnership, limited
liability partnership, corporation or limited  liability company which (a) is
domiciled, organized, or formed, as the case may be, in the United States; (b)
is in good standing in the state of its formation or otherwise authorized to
conduct business in the United States; (c) is not currently suspended or
debarred from doing business with the United States government or any
instrumentality, division, agency or department thereof; (d) exports or plans to
export Items; (e) operates and has operated as a going concern for at least one
(1) year; (f) has a positive tangible net worth determined in accordance with
GAAP; and (g) has revenue generating operations relating to its core business
activities for at least one year.

      "ERISA" shall mean the Employee Retirement Income Security Act of 1974 and
the rules and regulations promulgated thereunder.

      "Export Order" shall mean a written export order or contract for the
purchase by the Buyer from Borrower of any of the Items.

      "Export-Related Accounts Receivable" shall mean those Accounts Receivable
arising from the sale of Items which are due and payable to Borrower in the
United States.

      "Export-Related Accounts Receivable Value" shall mean, at the date of
determination thereof, the aggregate face amount of Eligible Export-Related
Accounts Receivable less taxes, discounts, credits, allowances and Retainages,
except to the extent otherwise permitted by Ex-Im Bank in writing.

      "Export-Related Borrowing Base" shall mean, at the date of determination
thereof, the sum of (a) the Export-Related Inventory Value multiplied by the
Advance Rate applicable to Export-Related Inventory set forth in Section 5(C)(1)
of the Loan Authorization Agreement, (b) the Export-Related Accounts Receivable
Value multiplied by the Advance Rate applicable to Export-Related Accounts
Receivables set forth in Section 5(C)(2) of the Loan Authorization Agreement,
(c) if permitted by Ex-Im Bank in writing, the Retainage Value multiplied by the
Retainage Advance Rate set forth in Section 5(C)(3) of the Loan Authorization
Agreement and (d) the Other Assets Value multiplied by the Advance Rate
applicable to Other Assets set forth in Section 5(C)(4) of the Loan
Authorization Agreement.

      "Export-Related Borrowing Base Certificate" shall mean a certificate in
the form provided or approved by Lender, executed by Borrower and delivered to
Lender pursuant to the Loan Documents detailing the Export-Related Borrowing
Base supporting the Credit Accommodations which reflects, to the extent included
in the Export-Related Borrowing Base, Export-Related Accounts Receivable,
Eligible Export-Related Accounts Receivable, Export-Related Inventory and
Eligible Export-Related Inventory balances that have been reconciled with
Borrower's general ledger, Accounts Receivable aging report and Inventory
schedule.

      "Export-Related General Intangibles" shall mean those General Intangibles
necessary or desirable to or for the disposition of Export-Related Inventory.

                                       6
<PAGE>   12
      "Export-Related Inventory" shall mean the Inventory of Borrower located in
the United States that has been purchased, manufactured or otherwise acquired by
Borrower for resale pursuant to Export Orders.

      "Export-Related Inventory Value" shall mean, at the date of determination
thereof, the lower of cost or market value of Eligible Export-Related Inventory
of Borrower as determined in accordance with GAAP.

      "Final Disbursement Date" shall mean, unless subject to an extension of
such date agreed to by Ex-Im Bank, the last date on which Lender may make a
Disbursement set forth in Section 10 of the Loan Authorization Agreement or, if
such date is not a Business Day, the next succeeding Business Day; provided,
however, to the extent that Lender has not received cash collateral or an
indemnity with respect to Letter of Credit Obligations outstanding on the Final
Disbursement Date, the Final Disbursement Date with respect to an advance to
fund a drawing under a Letter of Credit shall be no later than thirty (30)
Business Days after the expiry date of the Letter of Credit related thereto.

      "GAAP" shall mean the generally accepted accounting principles issued by
the American Institute of Certified Public Accountants as in effect from time to
time.

      "General Intangibles" shall mean all intellectual property and other
"general intangibles" (as such term is defined in the UCC) necessary or
desirable to or for the disposition of Inventory.

      "Guarantor" shall mean each Person, if any, identified in Section 3 of the
Loan Authorization Agreement who shall guarantee (jointly and severally if more
than one) the payment and performance of all or a portion of the Loan Facility
Obligations.

      "Guaranty Agreement" shall mean a valid and enforceable agreement of
guaranty executed by each Guarantor in favor of Lender.

      "Inventory" shall mean all "inventory" (as such term is defined in the
UCC), now or hereafter owned or acquired by Borrower, wherever located,
including all inventory, merchandise, goods and other personal property which
are held by or on behalf of Borrower for sale or lease or are furnished or are
to be furnished under a contract of service or which constitute raw materials,
work in process or materials used or consumed or to be used or consumed in
Borrower's business or in the processing, production, packaging, promotion,
delivery or shipping of the same, including other supplies.

      "ISP" shall mean the International Standby Practices-ISP98, International
Chamber of Commerce Publication No. 590 and any amendments and revisions
thereof.

      "Issuing Bank" shall mean the bank that issues a Letter of Credit, which
bank is Lender itself or a bank that Lender has caused to issue a Letter of
Credit by way of guarantee.

      "Items" shall mean the finished goods or services which are intended for
export from the United States, as specified in Section 4(A) of the Loan
Authorization Agreement.

                                       7
<PAGE>   13

     "Letter of Credit" shall mean a Commercial Letter of Credit or a Standby
Letter of Credit.

     "Letter of Credit Obligations" shall mean all outstanding incurred by
Lender, whether direct or indirect, contingent or otherwise, due or not due, in
connection with the issuance or guarantee by Lender or the Issuing Bank of
Letters of Credit.

     "Lien" shall mean any mortgage, security deed or deed of trust, pledge,
hypothecation, assignment, deposit arrangement, lien, charge, claim, security
interest, security title, easement or encumbrance, or preference, priority or
other security agreement or preferential arrangement of any kind or nature
whatsoever (including any lease or title retention agreement, any financing
lease having substantially the same economic effect as any of the foregoing, and
the filing of, or agreement to give, any financing statement perfecting a
security interest under the UCC or comparable law of any jurisdiction) by which
property is encumbered or otherwise charged.

     "Loan Agreement" shall mean a valid and enforceable agreement between
Lender and Borrower setting forth the terms and conditions of the Loan Facility.

     "Loan Authorization Agreement" shall mean the Loan Authorization Agreement
entered into between Lender and Ex-Im Bank or the Loan Authorization Notice
setting forth certain terms and conditions of the Loan Facility, a copy of which
is attached hereto as Annex A.

     "Loan Authorization Notice" shall mean the Loan Authorization Notice
executed by Lender and delivered to Ex-Im Bank in accordance with the Delegated
Authority Letter Agreement setting forth the terms and conditions of each Loan
Facility.

     "Loan Documents" shall mean the Loan Authorization Agreement, the Loan
Agreement, this Agreement, each promissory note (if applicable), each Guaranty
Agreement, and all other instruments, agreements and documents now or hereafter
executed by Borrower or any Guarantor evidencing, securing, guaranteeing or
otherwise relating to the Loan Facility or any Credit Accommodations made
thereunder.

     "Loan Facility" shall mean the Revolving Loan Facility, the Transaction
Specific Loan Facility or the Transaction Specific Revolving Loan Facility
established by Lender in favor of Borrower under the Loan Documents.

     "Loan Facility Obligations" shall mean all loans, advances, debts,
expenses, fees, liabilities, and obligations for the performance of covenants,
tasks or duties or for payment of monetary amounts (whether or not such
performance is then required or contingent, or amounts are liquidated or
determinable) owing by Borrower to Lender, of any kind or nature, present or
future, arising in connection with the Loan Facility.

     "Loan Facility Term" shall mean the number of months from the Effective
Date to the Final Disbursement Date as originally set forth in the Loan
Authorization Agreement.

     "Master Guarantee Agreement" shall mean the Master Guarantee Agreement
between Ex-Im Bank and Lender, as amended, modified, supplemented and restated
from time to time.

                                       8

<PAGE>   14
     "Material Adverse Effect" shall mean a material adverse effect on (a) the
business, assets, operations, prospects or financial or other condition of
Borrower or any Guarantor, (b) Borrower's ability to pay or perform the Loan
Facility Obligations in accordance with the terms thereof, (c) the Collateral
or Lender's Liens on the Collateral or the priority of such Lien or (d)
Lender's rights and remedies under the Loan Documents.

     "Maximum Amount" shall mean the maximum principal balance of Credit
Accommodations that may be outstanding at any time under the Loan Facility
specified in Section 5(A) of the Loan Authorization Agreement.

     "Other Assets" shall mean the Collateral, if any, described in Section
5(C)(4) of the Loan Authorization Agreement.

     "Other Assets Value" shall mean, at the date of determination thereof, the
value of the Other Assets as determined in accordance with GAAP.

     "Permitted Liens" shall mean (a) Liens for taxes, assessments or other
governmental charges or levies not delinquent, or, being contested in good
faith and by appropriate proceedings and with respect to which proper reserves
have been taken by Borrower; provided that, the Lien shall have no effect on
the priority of the Liens in favor of Lender or the value of the assets in
which Lender has such a Lien and a stay of enforcement of any such Lien shall
be in effect; (b) deposits or pledges securing obligations under worker's
compensation, unemployment insurance, social security or public liability laws
or similar legislation; (c) deposits or pledges securing bids, tenders,
contracts (other than contracts for the payment of money), leases statutory
obligations, surety and appeal bonds and other obligations of like nature
arising in the ordinary course of Borrower's business; (d) judgment Liens that
have been stayed or bonded; (e) mechanics', workers', materialmen's or other
like Liens arising in the ordinary course of Borrower's business with respect
to obligations which are not due; (f) Liens placed upon fixed assets hereafter
acquired to secure a portion of the purchase price thereof, provided, that, any
such Lien shall not encumber any other property of Borrower; (g) security
interests being terminated concurrently with the execution of the Loan
Documents; (h) Liens in favor of Lender securing the Loan Facility Obligations;
and (i) Liens disclosed in Section 6(D) of the Loan Authorization Agreement.

     "Person" shall mean any individual, sole proprietorship, partnership,
limited liability partnership, joint venture, trust, unincorporated
organization, association, corporation, limited liability company, institution,
public benefit corporation, entity or government (whether national, federal,
provincial, state, county, city, municipal or otherwise, including any
instrumentality, division, agency, body or department thereof), and shall
include such Person's successors and assigns.

     "Principals" shall mean any officer, director, owner, partner, key
employee, or other Person with primary management or supervisory
responsibilities with respect to Borrower or any other Person (whether or not
an employee) who has critical influence on or substantive control over the
transactions covered by this Agreement.

                                       9
<PAGE>   15
     "Retainage" shall mean that portion of the purchase price of an Export
Order that a Buyer is not obligated to pay until the end of a specified period
of time following the satisfactory performance under such Export Order.

     "Retainage Accounts Receivable" shall mean those portions of Eligible
Export-Related Accounts Receivable arising out of a Retainage.

     "Retainage Advance Rate" shall mean the percentage rate specified in
Section 5(C)(3) of the Loan Authorization Agreement as the Advance Rate for the
Retainage Accounts Receivable of Borrower.

     "Retainage Value" shall mean, at the date of determination thereof, the
aggregate face amount of Retainage Accounts Receivable, less taxes, discounts,
credits and allowances, except to the extent otherwise permitted by Ex-Im Bank
in writing.

     "Revolving Loan Facility" shall mean the credit facility or portion
thereof established by Lender in favor of Borrower for the purpose of providing
pre-export working capital in the form of loans and/or Letters of Credit to
finance the manufacture, production or purchase and subsequent export sale of
Items pursuant to Loan Documents under which Credit Accommodations may be made
and repaid on a continuous basis based solely on the Export-Related Borrowing
Base during the term of such credit facility.

     "Special Conditions" shall mean those conditions, if any, set forth in
Section 13 of the Loan Authorization Agreement.

     "Specific Export Orders" shall mean those Export Orders specified in
Section 5(D) of the Loan Authorization Agreement.

     "Standby Letter of Credit" shall mean those letters of credit subject to
the ISP or UCP issued or caused to be issued by Lender for Borrower's account
that can be drawn upon by a Buyer only if Borrower fails to perform all of its
obligations with respect to an Export Order.

     "Transaction Specific Loan Facility" shall mean a credit facility or a
portion thereof established by Lender in favor of Borrower for the purpose of
providing pre-export working capital in the form of loans and/or Letters of
Credit to finance the manufacture, production or purchase and subsequent export
sale of Items pursuant to Loan Documents under which Credit Accommodations are
made based solely on the Export-Related Borrowing Base relating to Specific
Export Orders and once such Credit Accommodations are repaid they may not be
reborrowed.

     "Transaction Specific Revolving Loan Facility" shall mean a Revolving
Credit Facility established to provide financing of Specific Export Orders.

     "UCC" shall mean the Uniform Commercial Code as the same may be in effect
from time to time in the jurisdiction in which Borrower or Collateral is
located.

                                       10
<PAGE>   16
     "UCP" shall mean the Uniform Customs and Practice for Documentary Credits
(1993 Revision), International Chamber of Commerce Publication No. 500 and any
amendments and revisions thereof.

     "U.S." or "United States" shall mean the United States of America and its
territorial possessions.

     "U.S. Content" shall mean with respect to any Item all the labor,
materials and services which are of U.S. origin or manufacture, and which are
incorporated into an Item in the United States.

     "Warranty" shall mean Borrower's guarantee to Buyer that the Items will
function as intended during the warranty period set forth in the applicable
Export Order.

     "Warranty Letter of Credit" shall mean a Standby Letter of Credit which is
issued or caused to be issued by Lender to support the obligations of Borrower
with respect to a Warranty or a Standby Letter of Credit which by its terms
becomes a Warranty Letter of Credit.

1.02 Rules of Construction. For purposes of this Agreement, the following
additional rules of construction shall apply, unless specifically indicated to
the contrary: (a) wherever from the context it appears appropriate, each term
stated in either the singular or plural shall include the singular and the
plural, and pronouns stated in the masculine, feminine or neuter gender shall
include the masculine, the feminine and the neuter; (b) the term "or" is not
exclusive; (c) the term "including" (or any form thereof) shall not be limiting
or exclusive; (d) all references to statutes and regulations shall include any
amendments of same and any successor statutes and regulations; (e) the words
"this Agreement", "herein", "hereof", "hereunder" or other words of similar
import refer to this Agreement as a whole including the schedules, exhibits,
and annexes hereto as the same may be amended, modified or supplemented; (f)
all references in this Agreement to sections, schedules, exhibits, and annexes
shall refer to the corresponding sections, schedules, exhibits, and annexes of
or to this Agreement; and (g) all references to any instruments or agreements,
including references to any of the Loan Documents, or the Delegated Authority
Letter Agreement shall include any and all modifications, amendments and
supplements thereto and any and all extensions or renewals thereof to the
extent permitted under this Agreement.

1.03 Incorporation of Recitals. The Recitals to this Agreement are incorporated
into and shall constitute a part of this Agreement.

                                   ARTICLE II
                            OBLIGATIONS OF BORROWER

     Until payment in full of all Loan Facility Obligations and termination of
the Loan Documents, Borrower agrees as follows:

2.01 Use of Credit Accommodations. (a) Borrower shall use Credit Accommodations
only for the purpose of enabling Borrower to finance the cost of manufacturing,
producing, purchasing or selling the Items. Borrower may not use any of the
Credit Accommodations for the purpose of:

                                       11

<PAGE>   17
(i) servicing or repaying any of Borrower's pre-existing or future indebtedness
unrelated to the Loan Facility (unless approved by Ex-Im Bank in writing); (ii)
acquiring fixed assets or capital goods for use in Borrower's business; (iii)
acquiring, equipping or renting commercial space outside of the United States;
(iv) paying the salaries of non U.S. citizens or non-U.S. permanent residents
who are located in offices outside of the United States; or (v) in connection
with a Retainage or Warranty (unless approved by Ex-Im Bank in writing).

     (b) In addition, no Credit Accommodation may be used to finance the
manufacture, purchase or sale of any of the following:

          (i) Items to be sold or resold to a Buyer located in a country as to
which Ex-Im Bank is prohibited from doing business as designated in the Country
Limitation Schedule;

          (ii) that part of the cost of the Items which is not U.S. Content
unless such part is not greater than fifty percent (50%) of the cost of the
Items and is incorporated into the Items in the United States;

          (iii) defense articles or defense services; or

          (iv) without Ex-Im Bank's prior written consent, any Items to be used
in the construction, alteration, operation or maintenance of nuclear power,
enrichment, reprocessing, research or heavy water production facilities.

2.02 Loan Documents and Loan Authorization Agreement. (a) Each Loan Document
and this Agreement have been duly executed and delivered on behalf of Borrower,
and each such Loan Document and this Agreement are and will continue to be a
legal and valid obligation of Borrower, enforceable against it in accordance
with its terms.

     (b) Borrower shall comply with all of the terms and conditions of the Loan
Documents, this Agreement and the Loan Authorization Agreement.

2.03 Export-Related Borrowing Base Certificates and Export Orders. In order to
receive Credit Accommodations under the Loan Facility, Borrower shall have
delivered to Lender an Export-Related Borrowing Base Certificate as frequently
as required by Lender but at least within the past thirty (30) calendar days and
a copy of the Export Order(s) (or, for Revolving Loan Facilities, if permitted
by Lender, a written summary of the Export Orders) against which Borrower is
requesting Credit Accommodations. If Lender permits summaries of Export Orders,
Borrower shall also deliver promptly to Lender copies of any Export Orders
requested by Lender. In addition, so long as there are any Credit Accommodations
outstanding under the Loan Facility, Borrower shall deliver to Lender at least
once each month no later than the twentieth (20th) day of such month or more
frequently as required by the Loan Documents, an Export-Related Borrowing Base
Certificate.

2.04 Exclusions from the Export-Related Borrowing Base. In determining the
Export-Related Borrowing Base, Borrower shall exclude therefrom Inventory which
is not Eligible Export-Related Inventory and Accounts Receivable which are not
Eligible Export-Related Accounts Receivable. Borrower shall promptly, but in
any event within five (5) Business Days, notify

                                       12

<PAGE>   18
Lender (a) if any then existing Export-Related Inventory no longer constitutes
Eligible Export-Related Inventory or (b) of any event or circumstance which to
Borrower's knowledge would cause Lender to consider any then existing
Export-Related Accounts Receivable as no longer constituting an Eligible
Export-Related Accounts Receivable.

 2.05 Financial Statements. Borrower shall deliver to Lender the financial
statements required to be delivered by Borrower in accordance with Section 11
of the Loan Authorization Agreement.

 2.06 Schedules, Reports and Other Statements. Borrower shall submit to Lender
in writing each month (a) an Inventory schedule for the preceding month and (b)
an Accounts Receivable aging report for the preceding month detailing the terms
of amounts due from each Buyer. Borrower shall also furnish to Lender promptly
upon request such information, reports, contracts, invoices and other data
concerning the  Collateral as Lender may from time to time specify.

 2.07 Additional Security Payment. (a) Borrower shall at all times ensure that
the Export-Related Borrowing Base equals or exceeds the Credit Accommodation
Amount. If informed by Lender or if Borrower otherwise has actual knowledge that
the Export-Related Borrowing Base is at any time less than the Credit
Accommodation Amount, Borrower shall, within five (5) Business Days, either (i)
furnish additional Collateral to Lender, in form and amount satisfactory to
Lender and Ex-Im Bank or (ii) pay to Lender an amount equal to the difference
between the Credit Accommodation Amount and the Export-Related Borrowing Base.

     (b)  For purposes of this Agreement, in determining the Export-Related
Borrowing Base there shall be deducted from the Export-Related Borrowing Base
(i) an amount equal to twenty-five percent (25%) of the outstanding face amount
of Commercial Letters of Credit and Standby Letters of Credit and (ii) one
hundred percent (100%) of the face amount of Warranty Letters of Credit less
the amount of cash collateral held by Lender to secure Warranty Letters of
Credit.

     (c)  Unless otherwise approved in writing by Ex-Im Bank, for Revolving
Loan Facilities (other than Transaction  Specific Revolving Loan Facilities),
Borrower shall at all times ensure that the outstanding principal balance of
the Credit Accommodations that is supported by Export-Related Inventory does
not exceed sixty percent (60%) of the sum of the total outstanding principal
balance of the Disbursements and the undrawn face amount of all outstanding
Commercial Letters of Credit. If informed by Lender or if Borrower otherwise
has actual knowledge that the outstanding principal balance of the Credit
Accommodations that is supported by Inventory exceeds sixty percent (60%) of
the sum of the total outstanding principal balance of the Disbursements and the
undrawn face amount of all outstanding Commercial Letters of Credit, Borrower
shall, within five (5) Business Days, either (i) furnish additional
non-Inventory Collateral to Lender, in form and amount satisfactory to Lender
and Ex-Im Bank, or (ii) pay down the applicable portion of the Credit
Accommodations so that the above described ratio is not exceeded.

 2.08 Continued Security Interest. Borrower shall not change (a) its name or
identity in any manner, (b) the location of its principal place of business,
(c) the location of any of the Collateral or (d) the location of any of the
books or records related to the Collateral, in each instance

                                       13
<PAGE>   19
without giving thirty (30) days prior written notice thereof to Lender and
taking all actions deemed necessary or appropriate by Lender to continuously
protect and perfect Lender's Liens upon the Collateral.

     2.09 Inspection of Collateral. Borrower shall permit the representatives of
Lender and Ex-Im Bank to make at any time during normal business hours
inspections of the Collateral and of Borrower's facilities, activities, and
books and records, and shall cause its officers and employees to give full
cooperation and assistance in connection therewith.

     2.10 General Intangibles. Borrower represents and warrants that it owns,
or is licensed to use, all General Intangibles necessary to conduct its
business as currently conducted except where the failure of Borrower to own or
license such General Intangibles could not reasonably be expected to have a
Material Adverse Effect.

     2.11 Notice of Certain Events. Borrower shall promptly, but in any event
within five (5) Business Days, notify Lender in writing of the occurrence of
any of the following:

          (a)  Borrower or any Guarantor (i) applies for, consents to or
suffers the appointment of, or the taking of possession by, a receiver,
custodian, trustee, liquidator or similar fiduciary of itself or of all or a
substantial part of its property or calls a meeting of its creditors, (ii)
admits in writing its inability, or is generally unable, to pay its debts as
they become due or ceases operations of its present business, (iii) makes a
general assignment for the benefit of creditors, (iv) commences a voluntary
case under any state or federal bankruptcy laws (as now or hereafter in
effect), (v) is adjudicated as bankrupt or insolvent, (vi) files a petition
seeking to take advantage of any other law providing for the relief of debtors,
(vii) acquiesces to, or fails to have dismissed within thirty (30) days, any
petition filed against it in any involuntary case under such bankruptcy laws,
or (vii) takes any action for the purpose of effecting any of the foregoing;

          (b)  any Lien in any of the Collateral, granted or intended by the
Loan Documents to be granted to Lender, ceases to be a valid, enforceable,
perfected, first priority Lien (or a lesser priority if expressly permitted
pursuant to Section 6 of the Loan Authorization Agreement) subject only to
Permitted Liens;

          (c)  the issuance of any levy, assessment, attachment, seizure or
Lien, other than a Permitted Lien, against any of the Collateral which is not
stayed or lifted within thirty (30) calendar days;

          (d)  any proceeding is commenced by or against Borrower or any
Guarantor for the liquidation of its assets or dissolution;

          (e)  any litigation is filed against Borrower or any Guarantor which
has had or could reasonably be expected to have a Material Adverse Effect and
such litigation is not withdrawn or dismissed within thirty (30) calendar days
of the filing thereof;

          (f)  any default or event of default under the Loan Documents;

          (g) any failure to comply with any terms of the Loan Authorization
Agreement;

                                       14
<PAGE>   20

        (h)     any material provision of any Loan Document or this Agreement
for any reason ceases to be valid, binding and enforceable in accordance with
its terms;

        (i)     any event which has had or could reasonably be expected to have
a Material Adverse Effect; or

        (j)     the Credit Accommodation Amount exceeds the applicable
Export-Related Borrowing Base.

    2.12 Insurance. Borrower will at all times carry property, liability and
other insurance, with insurers acceptable to Lender, in such form and amounts,
and with such deductibles and other provisions, as Lender shall require, and
Borrower will provide evidence of such insurance to Lender, so that Lender is
satisfied that such insurance is, at all times, in full force and effect. Each
property insurance policy shall name Lender as loss payee and shall contain a
lender's loss payable endorsement in form acceptable to Lender and each
liability insurance policy shall name Lender as an additional insured. All
policies of insurance shall provide that they may not be cancelled or changed
without at least ten (10) days' prior written notice to Lender and shall
otherwise be in form and substance satisfactory to Lender. Borrower will
promptly deliver to Lender copies of all reports made to insurance companies.

    2.13 Taxes. Borrower has timely filed all tax returns and reports required
by applicable law, has timely paid all applicable taxes, assessments, deposits
and contributions owing by Borrower and will timely pay all such items in the
future as they became due and payable. Borrower may, however, defer payment of
any contested taxes; provided, that Borrower (a) in good faith contests
Borrower's obligation to pay such taxes by appropriate proceedings promptly and
diligently instituted and conducted; (b) notifies Lender in writing of the
commencement of, and any material development in, the proceedings; (c) posts
bonds or takes any other steps required to keep the contested taxes from
becoming a Lien upon any of the Collateral; and (d) maintains adequate reserves
therefor in conformity with GAAP.

    2.14 Compliance with Laws. Borrower represents and warrants that it has
complied in all material respects with all provisions of all applicable laws
and regulations, including those relating to Borrower's ownership of real or
personal property, the conduct and licensing of Borrower's business, the
payment and withholding of taxes, ERISA and other employee matters, safety and
environmental matters.

    2.15 Negative Covenants. Without the prior written consent of Ex-Im Bank
and Lender, Borrower shall not (a) merge, consolidate or otherwise combine with
any other Person; (b) acquire all or substantially all of the assets or capital
stock of any other Person; (c) sell, lease, transfer, convey, assign or
otherwise dispose of any of its assets, except for the sale of Inventory in the
ordinary course of business; (d) create any Lien on the Collateral except for
Permitted Liens; (e) make any material changes in its organizational structure
of identity; or (f) enter into any agreement to do any of the foregoing.

    2.16 Reborrowings and Repayment Terms. (a) If the Loan Facility is a
Revolving Loan Facility, provided that Borrower is not in default under any of
the Loan Documents, Borrower

                                       15
<PAGE>   21
may borrow, repay and reborrow amounts under the Loan Facility until the close
of business on the Final Disbursement Date. Unless the Revolving Loan Facility
is renewed or extended by Lender with the consent of Ex-Im Bank, Borrower shall
pay in full the outstanding Loan Facility Obligations and all accrued and
unpaid interest thereon no later than the first Business Day after the Final
Disbursement Date.

     (b) If the Loan Facility is a Transaction Specific Loan Facility, Borrower
shall, within two (2) Business Days of the receipt thereof, pay to Lender (for
application against the outstanding Loan Facility Obligations and accrued and
unpaid interest thereon) all checks, drafts, cash and other remittances it may
receive in payment or on account of the Export-Related Accounts Receivable or
any other Collateral, in precisely the form received (except for the
endorsement of Borrower where necessary). Pending such deposit, Borrower shall
hold such amounts in trust for Lender separate and apart and shall not
commingle any such items of payment with any of its other funds or property.

2.17  Cross Default. Borrower shall be deemed in default under the Loan
Facility if Borrower fails to pay when due any amount payable to Lender under
any loan or other credit accommodations to Borrower whether or not guaranteed
by Ex-Im Bank.

2.18  Munitions List. If any of the Items are articles, services, or related
technical data that are listed on the United States Munitions List (part 121 of
title 22 of the Code of Federal Regulations), Borrower shall send a written
notice promptly, but in any event within five (5) Business Days, of Borrower
learning thereof to Lender describing the Item(s) and the corresponding invoice
amount.

2.19  Suspension and Debarment, etc. On the date of this Agreement neither
Borrower nor its Principals are (a) debarred, suspended, proposed for debarment
with a final determination still pending, declared ineligible or voluntarily
excluded (as such terms are defined under any of the Debarment Regulations
referred to below) from participating in procurement or nonprocurement
transactions with any United States federal government department or agency
pursuant to any of the Debarment Regulations or (b) indicted, convicted or had
a civil judgment rendered against Borrower or any of its Principals for any of
the offenses listed in any of the Debarment Regulations. Unless authorized by
Ex-Im Bank, Borrower will not knowingly enter into any transactions in
connection with the Items with any person who is debarred, suspended, declared
ineligible or voluntarily excluded from participation in procurement or
nonprocurement transactions with any United States federal government
department or agency pursuant to any of the Debarment Regulations. Borrower
will provide immediate written notice to Lender if at any time it learns that
the certification set forth in this Section 2.19 was erroneous when made or has
become erroneous by reason of changed circumstances.

                                  ARTICLE III
                              RIGHTS AND REMEDIES

3.01  Indemnification. Upon Ex-Im Bank's payment of a Claim to Lender in
connection with the Loan Facility pursuant to the Master Guarantee Agreement,
Ex-Im Bank may assume all rights and remedies of Lender under the Loan
Documents and may enforce any such rights or remedies against Borrower, the
Collateral and any Guarantors. Borrower shall hold Ex-Im Bank

                                       16
<PAGE>   22
and Lender harmless from and indemnify them against any and all liabilities,
damages, claims, costs and losses incurred or suffered by either of them
resulting from (a) any materially incorrect certification or statement
knowingly made by Borrower or its agent to Ex-Im Bank or Lender in connection
with the Loan Facility, this Agreement, the Loan Authorization Agreement or any
other Loan Documents or (b) any material breach by Borrower of the terms and
conditions of this Agreement, the Loan Authorization Agreement or any of the
other Loan Documents. Borrower also acknowledges that any statement,
certification or representation made by Borrower in connection with the Loan
Facility is subject to the penalties provided in Article 18 U.S.C. Section 1001.

     3.02  Liens.  Borrower agrees that any and all Liens granted by it to
Lender are also hereby granted to Ex-Im Bank to secure Borrower's obligation,
however arising, to reimburse Ex-Im Bank for any payments made by Ex-Im Bank
pursuant to the Master Guarantee Agreement. Lender is authorized to apply the
proceeds of, and recoveries from, any property subject to such Liens to the
satisfaction of Loan Facility Obligations in accordance with the terms of any
agreement between Lender and Ex-Im Bank.

                                   ARTICLE IV
                                 MISCELLANEOUS

     4.01  Governing Law.  This Agreement and the Loan Authorization Agreement
and the obligations arising under this Agreement and the Loan Authorization
Agreement shall be governed by, and construed in accordance with, the law of
the state governing the Loan Documents.

     4.02  Notification.  All notices required by this Agreement shall be given
in the manner and to the parties provided for in the Loan Agreement.

     4.03  Partial Invalidity.  If at any time any of the provisions of this
Agreement becomes illegal, invalid or unenforceable in any respect under the
law of any jurisdiction, neither the legality, the validity nor the
enforceability of the remaining provisions hereof shall in any way be affected
or impaired.

     4.04  Waiver of Jury Trial.  BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY ACTION, SUIT, PROCEEDING OR OTHER LITIGATION BROUGHT TO RESOLVE
ANY DISPUTE ARISING UNDER, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT,
THE LOAN AUTHORIZATION AGREEMENT, ANY LOAN DOCUMENT, OR ANY OTHER AGREEMENT,
DOCUMENT OR INSTRUMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR
THEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN), OR ACTIONS OR OMISSIONS OF LENDER, EX-IM BANK, OR ANY OTHER
PERSON, RELATING TO THIS AGREEMENT, THE LOAN AUTHORIZATION AGREEMENT OR ANY
OTHER LOAN DOCUMENT.

                                       17
<PAGE>   23

     IN WITNESS WHEREOF, Borrower has caused this Agreement to be duly executed
as of the 24th day of January, 2000.

PACKETEER, INC.

(Name of Borrower)

By: /s/ BRETT GALLOWAY
   -----------------------------
          (Signature)

Name: Brett Galloway
     ---------------------------
          (Print or Type)

Title:  VP Engineering & C.O.O.
      --------------------------
           (Print or Type)

ACKNOWLEDGED:

SILICON VALLEY BANK
--------------------------------
        (Name of Lender)

By: /s/ JOY C. OLGYAY
   -----------------------------
            (Signature)

Name: Joy C. Olgyay
     ---------------------------
           (Print or Type)

Title:  Vice President
      --------------------------
           (Print or Type)

                                       18<PAGE>   1
                                                                   EXHIBIT 10.16

                        PENTECH FINANCIAL SERVICES, INC.

                                                                Lease No. 300311

                             MASTER EQUIPMENT LEASE

This is a Master Equipment Lease between PENTECH FINANCIAL SERVICES, INC., a
California corporation, whose principal office is located at 310 West Hamilton
Avenue, Suite 202, Campbell, California 95008 ("Lessor") and PACKETEER, INC., a
Delaware corporation, whose principal office address is 10495 North DeAnza
Boulevard, Cupertino, CA 95014 ("Lessee"), with effective date of November 1,
1999 ("Effective Date").

1. LEASE. Lessor agrees to lease to Lessee and Lessee agrees to lease from
Lessor, subject to the terms and conditions of this Master Equipment Lease
("Lease"), the personal property ("Equipment") described in each Acceptance
Supplement ("Supplement") executed and delivered by Lessor and Lessee pursuant
to the terms of this Lease. Each Supplement shall be in the form prescribed by
Lessor and, upon execution and delivery, shall constitute a part of this Lease
to the same extent as if the provisions thereof were set forth in full in this
Lease document; the terms "Agreement", "hereof," "herein," and "thereunder,"
when used in this Lease shall mean this Lease, each Supplement and each Schedule
as hereinafter defined. This Agreement constitutes an agreement to lease.
Ownership of the Equipment remains with Lessor and nothing herein contained
shall be construed as conveying to Lessee any right, title or interest in the
equipment except as a Lessee only.

2. SELECTION OF EQUIPMENT. Lessee acknowledges that it has selected the type,
quantity and supplier of the Equipment referred to herein and that it has
requested Lessor to purchase the same for leasing to Lessee. Lessee agrees that
the Equipment and each part or unit thereof is of a design, size, quality and
capacity required by Lessee and is suitable for its purposes. Lessee
acknowledges that Lessor has informed or advised Lessee, in writing either
previously or by this Lease, of the following: (i) the identity of the supplier;
(ii) that the Lessee may have rights under the Supply Contract; and (iii) that
the Lessee may contact the supplier for a description of any such rights Lessee
may have under the Supply Contract. Lessor hereby assigns to Lessee all rights
which Lessor has or may acquire against any manufacturer, supplier, or
contractor with respect to any warranty or representation relating to the
Equipment leased hereunder.

3. EQUIPMENT TO REMAIN PERSONAL PROPERTY; LOCATION, IDENTIFICATION; INSPECTION.
Lessee represents that the Equipment shall be and at all times remain separately
identifiable personal property. Lessee shall, at its own expense, take such
action as may be necessary to prevent any third party from acquiring any right
to or interest in the Equipment by virtue of the Equipment being deemed to be
real property or a part of other personal property, and shall indemnify Lessor
against any loss which it may sustain by reason of Lessee's failure to do so.
The Equipment may not be removed from the location specified in the Supplement
pertaining thereto without Lessor's prior written consent. If requested by
Lessor, Lessee shall attach to and maintain on each item of Equipment a
conspicuous plate or marking disclosing Lessor's ownership thereof. Lessor or
its representatives may, at all reasonable times, and without advance notice,
inspect the Equipment. Lessee shall promptly advise Lessor of any circumstances
which may in any manner affect any item of Equipment or in any manner affect
Lessor's title thereto.

4. EXECUTION OF FURTHER DOCUMENTATION. Lessee will, at its own expense, promptly
execute and deliver to Lessor such further documentation and assurances and take
such further action as Lessor may from time to time require in order to more
effectively carry out the intent and purpose of this Agreement so as to
establish and protect the rights, interests and remedies intended to be created
in favor of Lessor hereunder, including, without limitation, the execution and
filing of financing statements and continuation statements with respect to the
Equipment and Agreement. Lessee authorizes Lessor to effect any such filing
(including the filing of any financing statements without the signature of
Lessee). Any expense incurred by Lessor in connection with any filings under
this paragraph shall be payable by Lessee on demand.

5. DISCLAIMER OF IMPLIED WARRANTIES. THE EQUIPMENT WILL BE LEASED "AS IS" AND
"WHERE IS". THE LESSOR HAS NOT MADE, MAY NOT BE CONSIDERED TO HAVE MADE, AND
SPECIFICALLY DISCLAIMS:

(1) ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WITH RESPECT TO THE
EQUIPMENT, REGARDING TITLE, CONDITION, DESIGN, OPERATION, MERCHANTABILITY,
FREEDOM FROM CLAIMS OF INFRINGEMENT OR THE LIKE, FITNESS FOR USE FOR A
PARTICULAR PURPOSE, QUALITY OF MATERIALS OR WORKMANSHIP, ABSENCE OF DISCOVERABLE
OR NONDISCOVERABLE DEFECTS, OR THAT THE EQUIPMENT IS IN COMPLIANCE WITH ANY
APPLICABLE GOVERNMENT REQUIREMENTS OR REGULATIONS; AND

(2) ANY OTHER EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WITH RESPECT TO THE
EQUIPMENT (INCLUDING ANY IMPLIED WARRANTY ARISING FROM A COURSE OF PERFORMANCE,
COURSE OF DEALING, OR USAGE OF TRADE); AND

(3) ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY REGARDING THE
CHARACTERIZATION OF THIS LEASE FOR TAX, ACCOUNTING, OR OTHER PURPOSES.

THE LESSEE WAIVES, RELEASES, RENOUNCES, AND DISCLAIMS EXPECTATION OF OR RELIANCE
ON ANY SUCH WARRANTY OR WARRANTIES.

THE LESSOR WILL NOT HAVE ANY RESPONSIBILITY OR LIABILITY TO THE LESSEE OR ANY
OTHER PERSON, WHETHER IN CONTRACT OR TORT, ARISING OUT OF ANY NEGLIGENCE OR
STRICT LIABILITY OF THE LESSOR OR OTHERWISE, FOR:

(1) ANY LIABILITY, LOSS, OR DAMAGE CAUSED OR ALLEGED TO BE CAUSED DIRECTLY OR

INDIRECTLY BY THE EQUIPMENT; BY ANY INADEQUACY, DEFICIENCY OR DEFECT OF THE
EQUIPMENT; OR BY ANY OTHER CIRCUMSTANCES IN CONNECTION WITH THIS LEASE;

(2) THE USE, OPERATION, OR PERFORMANCE OF THE EQUIPMENT OR ANY RISKS RELATING TO
IT;

(3) ANY CONSEQUENTIAL DAMAGES, INCLUDING THOSE FOR INTERRUPTION OF SERVICE, LOSS
OF BUSINESS, OR ANTICIPATED PROFITS; OR

(4) THE DELIVERY, OPERATION, MAINTENANCE, REPAIR, IMPROVEMENT, OR REPLACEMENT OF
THE EQUIPMENT.

6. TERM; ACCEPTANCE; RENT; RETURN. The term of lease of each item of Equipment
shall commence on the Commencement Date specified in the Supplement pertaining
to such Equipment and, unless earlier terminated pursuant to the provisions
hereof, shall continue for the term specified in such Supplement. Lessee's
execution and delivery of each Supplement shall constitute Lessee's irrevocable
acceptance of the equipment covered thereby for all purposes of this Agreement.
Lessee shall pay to Lessor, at the addresses specified above or at such other
address as may be provided by Lessor from time to time, rent as specified in
each Supplement. Each date on which an installment of rent is payable is
designated herein as "Rent Payment Date". As to each Supplement, the first Rent
Payment Date shall be the Rent Payment Date set forth therein, with the
succeeding Rent Payment Date on the corresponding day of each month thereafter.
In addition, if applicable, Lessee shall pay interim rent for the period between
the actual commencement of the rent under each Supplement and the date
designated as the Rent Payment Date, based on a 30 day month and the number of
days between the actual commencement date and the first Rent Payment Date.
Should any payment not be made by Lessee on or before the applicable Rent
Payment Date, Lessor shall be entitled to a late payment charge in addition to
the actual rent due of 5% of the late rent and any other amount due but unpaid
under this Agreement. Upon the expiration or earlier termination of the term of
lease of each item of Equipment leased thereunder, Lessee shall at its own
expense return such item to Lessor at such location within the continental
United States as Lessor may designate, in the condition required to be
maintained by Paragraph 9 hereof.

7. LESSEE'S OBLIGATIONS IRREVOCABLE. The Lessee's obligation to pay all rent
will be absolute and unconditional and will not be affected or reduced by any
circumstance, including:

(1) Any setoff, counterclaim, recoupment, defense, or other right that the
Lessee may have for any reason against the Lessor, the manufacturer, any seller
of the Equipment, or any person providing services with respect to the
Equipment;

(2) Any defect in the title, condition, design, operation, or fitness for use of
the Equipment; any damage to, or loss or destruction of, the Equipment; or any
interruption or cessation in its use or possession by the Lessee for any reason,
whether arising out of or related to an act or omission of the Lessor or any
other person;

(3) Any liens with respect to the Equipment;

(4) The invalidity or unenforceability of this Agreement or any absence of
right, power or authority of the Lessor or Lessee to enter into this lease;

(5) Any insolvency, bankruptcy, reorganization, or similar proceedings by or
against the Lessor or Lessee; or

<PAGE>   2

(6) Any other circumstance or occurrence of any nature, whether or not similar
to any of the foregoing.

It is the express intention of the Lessor and Lessee that all rent payable under
this Agreement will be payable in all events, unless the obligation to pay is
terminated under the express provisions of this Agreement.

The Lessee hereby waives, to the extent permitted by law, all rights that it may
now have or later acquire, by order or otherwise, to terminate this Agreement or
any obligation imposed on the Lessee in relation to this Agreement.

Nothing in this Agreement may be construed as a waiver of the Lessee's right to
seek a separate recovery of any payment of rent that is not due and payable
under this Agreement. The Lessee retains any right it may have to seek damages,
specific performance, or any other remedy at law or in equity, separately or in
combination, against the Lessor or any other person, on account of the Lessor's
or other person's failure to perform its obligations under this Agreement.

8. RESTRICTIONS ON TRANSFER. THE LESSEE MAY NOT SUBLET OR TRANSFER POSSESSION OF
THE EQUIPMENT WITHOUT THE PRIOR WRITTEN CONSENT OF THE LESSOR WHICH MAY BE
WITHHELD IN THE SOLE AND ABSOLUTE DISCRETION OF THE LESSOR. THE LESSEE MAY NOT
ASSIGN, PLEDGE, OR OTHERWISE ENCUMBER THIS LEASE.

With respect to any sublease or transfer of possession of the Equipment, the
rights of the sublessee or transferee will be subject and subordinate to all the
terms of this Agreement, including the Lessor's right of repossession on the
occurrence of an event of default. The Lessee will remain primarily liable for
the performance of all the terms of this Agreement to the same extent as if the
sublease or transfer of possession had not occurred.

The Lessor will have the right, at its sole expense, to assign, sell, or
encumber any part of its interest in the Equipment or in this Agreement and any
proceeds of the disposition of that interest, subject to the Lessee's rights
under this lease. To effect or facilitate such assignment, sale or encumbrance,
the Lessee agrees to provide all agreements, consents, conveyances or documents
that may be reasonably requested by the Lessor, including an unrestricted
release of the Lessor from its obligations under this Agreement. That release
will not release the Lessor from any liability that arose before the assignment
or sale.

Any person who succeeds to the rights and interests of the Lessor under this
clause will agree to be bound by the terms of this Agreement without alteration.

The Lessee acknowledges that an assignment, sale, or encumbrance of the Lessor's
interest would not materially change the Lessee's duties under the Agreement or
materially increase its burdens or risks. Even if such a transfer could be
deemed to have that effect, the Lessee agrees that the assignment, sale or
encumbrance will nevertheless be permitted.

Without prejudice to any rights that the Lessee may have against the Lessor, the
Lessee agrees that it will not assert against an assignee any claim or defense
that it may have against the Lessor.

The agreements, covenants, obligations and liabilities contained in this clause,
including but not limited to, all obligations to pay rent and to indemnify each
indemnitee, are made for the benefit of the indemnitees and their respective
successors and assigns.

9. MAINTENANCE COVENANT. The Lessee will:

(1) Furnish all labor and parts required for maintaining, repairing, and
replacing component parts of the Equipment to keep it in good operating
condition and appearance;

(2) Use, operate, maintain, and store the Equipment in a careful and proper
manner;

(3) Protect the Equipment from deterioration;

(4) Comply with the manufacturer's operating procedures and warranty
restrictions and all laws, ordinances, and regulations applicable to the
Equipment or its use and in compliance with the insurance policies required to
be maintained thereunder;

(5) Put the Equipment only to the use contemplated by the manufacturer; and

(6) Maintain accurate and complete records of all repairs and maintenance of the
Equipment and allow the Lessor to inspect those records at any time.

(7) Comply with the maintenance requirements of any maintenance schedule
recommended by the manufacturer or attached as a part of this agreement.

The Lessee will not make any alterations, additions, or improvements to the
Equipment without the Lessor's prior written consent, which consent shall not be
unreasonably withheld. All repairs, replacement parts, additions, alterations,
and improvements made to the Equipment by the Lessee will be considered to be
the Lessor's property and subject to the terms of this Agreement.

10. RISK OF LOSS COVENANT. The Lessee will bear the entire risk of destruction,
loss, theft, requisition of title, or use, confiscation, taking, or damage
(collectively, casualty loss) of the Equipment from any cause during the period
commencing when the Equipment is placed in transit to the Lessee and ending when
the Equipment is returned to the Lessor or its designee following termination as
provided herein. If during that period the Equipment suffers any casualty loss,
the Lessee will notify the Lessor in writing within five days following the
casualty loss. On demand by the Lessor, the Lessee will:

(1) If the damage constituting the casualty loss is repairable, repair the
Equipment to the condition in which the Equipment is required to be maintained
under this Agreement;

(2) If the damaged Equipment is not repairable, replace the Equipment at the
Lessee's sole expense with like Equipment approved by the Lessor and take all
actions and make all payments that may be required to vest in the Lessor title
to the replacement Equipment, free and clear of all liens, encumbrances, or
security interests; or

(3) Pay to the Lessor the casualty value (as defined below) and all other
amounts then due under this Agreement.

"Casualty value" is, at any given date, the stipulated loss value as shown on
the applicable Schedule to each Supplement, and is computed to be the sum of:

(1) The discounted value at that time, of the aggregate unpaid monthly rent
payments to be paid through the then remaining term of this Agreement,
discounting that amount at an annual discount rate of 8 percent; and

(2) The Lessor's reasonable estimate, at that time, of the fair market value of
the Equipment at the end of the term of this Agreement, discounted at an annual
discount rate of 8 percent.

11. INSURANCE. Lessee shall maintain at all times on the equipment, at Lessee's
expense, property damage, direct damage, and liability insurance in such
amounts, against such risks, and in such form and with such insurers as shall be
satisfactory to Lessor. The required insurance shall be as specified in the
applicable Supplement; provided, however, that the amount of direct damage
insurance shall not on any date be less than the greater of the full replacement
value or the Stipulated Loss Value of the Equipment as of such date. Each
insurance policy will name Lessor as additional insured and as loss payee, and
shall contain a clause requiring the insurer to give to Lessor at least 30 days
prior written notice of any alteration in or cancellation of the terms of such
policy. Lessee shall furnish to Lessor a certificate or other evidence
satisfactory to Lessor that such insurance coverage is in effect, provided,
however, that Lessor shall be under no duty to ascertain the existence or
adequacy of such insurance.

12. TAXES; INDEMNITY. Lessee agrees to pay, and to indemnify and hold Lessor
harmless from, all license fees, assessments, and sales, use, property, excise,
and other taxes and charges (other than federal income taxes and taxes imposed
by any other jurisdiction which are based on, or measured by, the net income of
Lessor for reasons other than the ownership or leasing of the Equipment in such
jurisdiction) imposed upon or with respect to (a) the Equipment or any part
thereof arising out of or in connection with the shipment of Equipment or the
possession, ownership, use or operation thereof, or (b) this Agreement or the
consummation of the transactions herein contemplated. The agreements and
indemnities contained in this paragraph shall survive the expiration or earlier
termination of this Agreement.

13.  DEPRECIATION INDEMNITY.

(1) Lessor, as the owner of the Equipment, shall be entitled to such deductions,
credits and other benefits as are provided by the Internal Revenue Code of 1986,
as amended (IRC), to an owner of property.

(2) Lessee agrees that neither it nor any corporation controlled by it, in
control of it, or under common control with it, directly or indirectly, will at
any time take any action or file any returns or other documents inconsistent
with the foregoing and that each of such corporations will file such returns,
take such action, and execute such documents as may be reasonable and necessary
to facilitate accomplishment of the intent thereof. Lessee agrees to copy and
make available for inspection and copying by Lessor such records as will enable
Lessor to determine whether it is entitled to the benefit of any amortization or
depreciation deduction, or other deduction or credit which may be available from
time to time with respect to the Equipment.

(3) If Lessor, under any circumstances or for any reason whatsoever, except for
acts of Lessor or future changes in the IRC, shall lose or shall not have the
right to claim or there shall be disallowed or recaptured, all or any portion of
the federal tax depreciation deductions with respect to any item of Equipment
based on depreciation of the Lessor's full cost of such item of Equipment and
computed on the basis of a method of depreciation provided by the IRC as Lessor
in its complete discretion may select, then Lessee agrees to pay Lessor upon
demand an amount which, after deduction of all taxes required to be paid by
Lessor in respect of the receipt thereof under the laws of any federal, state,
or local government or taxing authority of the United States or of any taxing
authority or government subsidiary of any foreign country, shall be equal to the
sum of (i) an amount equal to the additional income taxes paid or payable by
Lessor in consequence of the failure to obtain the benefit of a depreciation
deduction, and (ii) any interest and/or penalty which may be assessed in
connection with any of the foregoing.

The provisions of this paragraph shall survive the expiration or earlier
termination of this Agreement.

14. INDEMNIFICATION COVENANT. The Lessee agrees to indemnify, reimburse, and
hold harmless each indemnitee from and against all claims, damages, losses,
liabilities, demands, suits, judgments, causes of action, civil and criminal
legal proceedings, penalties, fines and other sanctions, and any attorney fees
and other reasonable costs and expenses, arising or imposed with or without the
Lessor's fault or negligence (whether active or passive) or under the doctrine
of strict liability (collectively, "claims"), relating to or arising in any
manner out of:

(1) This Agreement or the breach of any representation, warranty, or covenant
made by the Lessee under this Agreement;

(2) Manufacture, purchase, lease, delivery, nondelivery, acceptance, rejection,
ownership, possession, use, operation, return, or disposition of the Equipment;

(3) The Equipment's condition or any discoverable or nondiscoverable defect in
it arising from its design, testing, or construction; any article used in the
Equipment; or any maintenance, service, or repair, whether or not the Equipment
is in the Lessee's possession and regardless of where the Equipment is located;
or

(4) Any transaction, approval, or document contemplated by this Agreement.

The Lessee waives and releases each indemnitee from any existing or future
claims in any way connected with injury to or death of the Lessee's personnel,
loss or damage of the Lessee's property, or loss of use of any property, which
may:

(a) Result from or arise in any manner out of the ownership, leasing, condition,
use, or operation of the Equipment; or

(b) Be caused by any defect in the Equipment; its design, testing, or
construction; any article used in the Equipment; or any maintenance, service, or
repair, whether or not the Equipment is in the Lessee's possession and
regardless of where the Equipment is located.

The indemnities described in this clause will continue in full force and effect
notwithstanding the expiration or other termination of this Agreement and are
expressly made for the benefit and will be enforceable by each indemnitee.

15. COVENANT TO KEEP FREE OF LIENS. The Lessee will not directly or indirectly
create, incur, assume, or suffer to exist any lien on the Equipment, its title,
or any interest therein, except for:

(1)  The respective rights of the Lessor and Lessee under this Agreement;

(2) Liens granted by the Lessor with respect to the Equipment;

(3) Liens for taxes either not yet due or being contested in good faith by the
Lessee as long as adequate reserves are maintained with respect to those liens
and the Equipment is not, in the Lessor's reasonable opinion, in danger of being
sold, confiscated, forfeited, or seized as a result of the liens; and

(4) Inchoate materialmen's, mechanics', workmen's, repairmen's, employees', or
other like liens arising in the ordinary course of business, which either are
not delinquent or are being contested in good faith by the Lessee, as long as
the Equipment is not, in the Lessor's reasonable opinion, in danger of being
sold, confiscated, forfeited, or seized as a result of the liens.

The Lessee will promptly, at its sole expense, take any action that may be
necessary to discharge any lien except for the liens referred to in paragraphs
(1) and (2) arising at any time with respect to the Equipment.

16. WAIVER OF CONSEQUENTIAL DAMAGES. The Lessee will not be entitled to recover,
and hereby disclaims and waives any right that it may otherwise have to recover,
consequential damages as a result of any breach or alleged breach by the Lessor
of any of the agreements, representations, or warranties of the Lessor contained
in this Agreement.

<PAGE>   3

17. LESSOR'S RIGHT TO PERFORM. If Lessee fails to make any payment required to
be made hereunder or fails to comply with any other provisions of this
Agreement, Lessor may make such payment or comply with such provisions, and the
amount of such payment and the reasonable expenses of Lessor incurred in
connection with such payment or compliance, shall be immediately payable by
Lessee to Lessor.

18. DEFAULT. Any one of the following occurrences shall, in the Lessor's sole
discretion, constitute a material default by Lessee of this Agreement:

(1) Failure by Lessee to make any payment of rent or other amount owing
hereunder when due;

(2) Failure of Lessee to perform or observe any other covenant, agreement, or
condition hereunder;

(3) Any representation or warranty made by Lessee herein or in any document or
certificate furnished to Lessor in connection herewith shall prove to be
incorrect at any time;

(4) Lessee shall become insolvent or make an assignment for the benefit of
creditors or consent to the appointment of a trustee or receiver, or a trustee
or receiver shall be appointed for Lessee or for a substantial part of its
property or for the Equipment, or reorganization, arrangement, insolvency,
dissolution, or liquidation proceedings shall be instituted by or against
Lessee.

In such event, Lessor may declare this Agreement to be in default, and may
proceed in accordance with the provisions of Paragraph 19 hereof.

19.  REMEDIES.

(1) Remedies. On the occurrence of any event of default and at any time
afterwards as long as it continues, the Lessor may, at its option and without
notice to the Lessee, declare this Agreement to be in default and exercise one
or more of the following remedies:

(a) Declare the then Stipulated Loss Value immediately due and payable with
respect to any or all items of Equipment without notice or demand to Lessee;

(b) Sue for and recover all rent and other payments, then accrued or thereafter
accruing, with respect to any or all items of Equipment;

(c) Take possession of and render unusable any or all items of Equipment,
without demand or notice, wherever same may be located, without any court order
or other process of law and without liability for any damages occasioned by such
taking of possession (any such taking of possession will not constitute a
termination of this lease as to any or all items of Equipment unless Lessor
expressly so notifies Lessee in writing);

(d) Require Lessee to assemble any or all items of Equipment at the original
equipment location, such location to which the equipment may have been moved
with the prior written consent of Lessor, or such other location in reasonable
proximity to either of the foregoing as Lessor designates;

(e) Sell or otherwise dispose of any or all items of Equipment whether or not in
Lessor's possession, in a commercially reasonable manner at public or private
sale and with or without notice to Lessee and apply the net proceeds of such
sale, after deducting all costs of such sale, including, but not limited to,
costs of transportation, repossession, storage, refurbishing, advertising and
broker's fees, to the obligations of Lessee thereunder with Lessee remaining
liable for any deficiency and with any excess being retained by Lessor;

(f) Retain any repossessed items of Equipment and credit the reasonable value
thereof, after deducting all such sales related costs incurred to the date of
crediting, to the obligations of Lessee hereunder with Lessee remaining liable
for any deficiency and with Lessor having no obligation to reimburse Lessee on
account of any excess of such reasonable value over such obligations;

(g) Terminate this lease as to any or all items of Equipment;

(h) Utilize any other remedy available to Lessor at law or in equity.

In each case, plus the amount, if any, as reasonably calculated by the Lessor,
required for the Lessor to receive the same after tax economic return from this
lease that the Lessor would have received if the Lessee had performed all of its
obligations under this Agreement through the end of the lease term.

In addition to the foregoing, the Lessee will be liable for interest on unpaid
amounts at an annual interest rate of 18 percent from the date the same became
due until payment in full, and for all reasonable legal fees and other
reasonable costs and expenses incurred by the Lessor in connection with the
occurrence of any event of default or the exercise of its remedies.

A termination hereunder will occur only upon written notice by Lessor to Lessee
and only with respect to such items of Equipment as to which Lessor specifically
elects to terminate in such notice. Except as to such items with respect to
which there is a termination, this lease will remain in full force and effect
and Lessee will be and remain liable for the full performance of all its
obligations hereunder.

No right or remedy conferred herein is exclusive of any right or remedy
conferred herein or by law; but all such rights and remedies are cumulative of
every other right or remedy conferred hereunder or at law or in equity, by
statute or otherwise, and may be exercised concurrently or separately from time
to time.

(2) In effecting any repossession, the Lessor and its representatives and
agents, to the extent permitted by law, will:

(a) Have the right to enter on any premises where the Lessor reasonably believes
the Equipment is located;

(b) Not be liable, in conversion or otherwise, for the taking of any personal
property of the Lessee that is in or attached to the repossessed Equipment as
long as the Lessor promptly returns that property to the Lessee;

(c) Not be liable in any manner for any damage to any of the Lessee's property
in repossessing and holding the Equipment, except for damage caused by the
Lessor's gross negligence or willful misconduct; and

(d) Have the right to maintain possession of and dispose of the Equipment on any
premises owned by the Lessee or under the Lessee's control.

If reasonably required by the Lessor, the Lessee, at its sole expense, will
assemble and make the Equipment available at a place designated by the Lessor.
If the Equipment is returned to or repossessed by the Lessor, any rights in any
express or implied warranty previously assigned to the Lessee or otherwise held
by it will without further act, notice, or writing be assigned or reassigned to
the Lessor, if assignable. The Lessee will be liable to the Lessor for all
reasonable expenses, costs, and fees incurred in (1) repossessing, storing,
preserving, shipping, maintaining, repairing, and refurbishing the Equipment to
the condition required by this Agreement; and (2) preparing the Equipment for
sale or lease, advertising the sale or lease, and selling or re-letting the
Equipment.

No remedy referred to in this paragraph is intended to be exclusive, but, to the
extent permissible under applicable law, each will be cumulative and operate in
addition to any other remedy referred to above or otherwise available to the
Lessor at law or in equity. The exercise or beginning of exercise by the Lessor
of any one or more of its remedies will not preclude the simultaneous or later
exercise by the Lessor of any other remedies.

No express or implied waiver by the Lessor of any default or event of default
will be construed as a waiver of any future or subsequent default or event of
default.

20. CONDITIONS PRECEDENT. The obligation of Lessor contained in paragraph 1 of
this Agreement shall be subject to the following conditions precedent:

(1) There shall have occurred no material adverse change in the business or the
financial condition of Lessee from the date hereof until the Commencement Date
of any Supplement;

(2) Lessee shall have furnished Lessor with a certificate or other evidence
satisfactory to Lessor that insurance coverage as required by this Agreement is
in effect as to the item of Equipment desired to be leased;

(3) Unless specifically waived by Lessor, Lessee shall have furnished Lessor
opinions of counsel as to the Agreement, in form and substance acceptable to
Lessor;

(4) Unless specifically waived by Lessor, Lessee shall have furnished Lessor
waivers, in form and substance acceptable to Lessor, of all rights in or to the
Equipment of any landlord or mortgagee of any real property upon which the
Equipment is or is to be situated; and

(5) All other instruments and legal and corporate proceedings in connection with
the transactions contemplated by this Agreement shall be satisfactory in form
and substance to Lessor, and counsel to Lessor shall have received copies of all
documents which it may have requested in connection therewith.

If any of the above conditions is not satisfied at the time Lessee submits any
Supplement, Lessor, in its sole discretion, shall have no obligation under this
Agreement to lease the Equipment covered thereby to Lessee.

21. FINANCIALS. Lessee agrees that for so long as any item of Equipment shall be
leased under the Agreement, Lessee will deliver or cause to be delivered to
Lessor (a) as soon as practicable, and in any event within 60 days after the end
of each quarterly period (other than the fourth quarterly period) together with
the related statements of income and expense for such quarterly period all in
reasonable detail prepared in accordance with generally accepted accounting
principles consistently applied throughout the period involved and certified by
Lessee's chief financial officer; and (b) as soon as practicable, and in any
event within 120 days after the close of each fiscal year of Lessee, the audited
balance sheet of Lessee as of the end of such fiscal year together with the
related statements of income and surplus for such fiscal year all in reasonable
detail, prepared in accordance with generally accepted accounting principles
consistently applied throughout the period involved and certified by an
independent certified public accountant acceptable to Lessor.

22. REPRESENTATIONS, WARRANTIES AND COVENANTS. As a material inducement to
Lessor entering into this Agreement with Lessee, Lessee represents, warrants,
and covenants as follows:

(1) If Lessee is a corporation, or a limited liability company, Lessee is duly
organized and validly existing and is in good standing under the laws of the
state of its incorporation, and is duly qualified and licensed to do business as
a foreign corporation and is in good standing in those jurisdictions where such
qualifications are necessary to authorize Lessee to carry on its present
business and operations, and to own its properties or to perform its obligations
thereunder;

(2) If Lessee is a partnership, Lessee is duly organized and validly existing
under the partnership laws of its state of domicile and is duly authorized in
any foreign jurisdiction where such qualification is necessary to authorize
Lessee to carry on its present business and operations and to own its properties
and to perform its obligations thereunder;

(3) Lessee has full power, authority, and legal right to execute, deliver, and
carry out as Lessee the terms and provisions of this Agreement, and any other
necessary documents in connection with this transaction;

(4) If Lessee is a corporation, Lessee's execution, delivery, and performance of
this Agreement and the other documents and agreements referred to herein, and
the performance of its obligations under this Agreement have all been authorized
by all necessary corporate action, do not require the approval or consent of
stockholders, or of any trustee or holders of any indebtedness or obligation of
Lessee and will not violate any law, governmental rule, regulation or order
binding upon Lessee or any provision of any indenture, mortgage, contract, or
other agreement to which Lessee is a party or by which it is bound or to which
it is subject, and will not violate any provision of the Certificate or Articles
of Incorporation, Bylaws, or any preferred stock agreement of Lessee;

(5) If Lessee is a partnership, Lessee's execution, delivery and performance of
this Agreement and the other documents and agreements referred to herein, and
the performance of its obligations under this Agreement have all been authorized
by all necessary partnership actions;

(6) There are no pending or threatened investigations, actions, or proceedings
before any court or administrative agency or other tribunal body, which seek to
question or set aside any of the transactions contemplated by this Agreement, or
which, if adversely determined, would materially affect the condition, business,
or operation of Lessee;

(7) Lessee is not in default in any material manner in the payment or
performance of any of its obligations or in the performance of any contract,
agreement, or other instrument to which it is a party or by which it or any of
its assets may be bound;

(8) The balance sheet of Lessee as of the end of its most recent fiscal year and
the related profit and loss statement of the Lessee for the fiscal year ended on
said date, including the related schedules and notes, together with the report
of an independent certified public accountant, heretofore delivered to Lessor,
are all true and correct and present fairly (I) the financial position of Lessee
as of the date of said balance sheet and (ii) the results of the operations of
Lessee for said fiscal year;

(9) All proceedings required to be taken to authorize the lease of the Equipment
from Lessor and to protect Lessor's interest in such Equipment, free and clear
of all liens and encumbrances whatsoever, have been taken;

(10) Lessee has no significant liabilities (contingent or otherwise) which are
not disclosed by or reserved against the financial statements referred to in (8)
above;

(11) All the financial statements referred to in (8) above have been prepared in
accordance with generally accepted accounting principles and practices applied
on a basis consistently maintained throughout the period involved;

(12) There has been no change which would have a material adverse effect on the
business or financial condition of Lessee from that set forth in the balance
sheet referred to in (8) above;

(13) No authorization, consent, approval, license, exemption of or filing or
registration with any court, governmental unit or department, commission, board,
bureau, agency, instrumentality or the like is required or necessary for the
valid execution and delivery of the Agreement, any bill of sale, and the other
documents and agreements referred to herein;

(14) This Master Lease, the Supplements, and any accompanying documents, having
been duly authorized, executed and delivered to Lessor, constitute legal, valid
and binding obligations of Lessee, enforceable against Lessee in accordance with
the terms hereof except as such terms may be limited by bankruptcy, insolvency,
or similar laws affecting the enforcement of creditor's rights generally;

<PAGE>   4

(15) Each item of Equipment will constitute unused "new Section 38 property" in
the hands of Lessor within the meaning of the Internal Revenue Code of 1986, as
amended, on the Commencement Date specified in the Supplement pertaining to said
item of Equipment;

(16) The Equipment is personal property and neither real property nor a fixture;

(17) The Equipment will be used for commercial operations only, not for
personal, family, or household purposes.

(18) As of the Commencement Date of each item of Equipment, a reasonable
estimate of the estimated fair market value of such item of Equipment at the end
of the lease term thereof will be at least 20% of the Lessor's cost therefor
(without including in such value any increase or decrease for inflation or
deflation, and after subtracting from such value any cost for removal and
delivery of possession of Equipment to Lessor at the end of the lease term
thereof); and

(19) As of the Commencement Date of each item of Equipment, a reasonable
estimate of the estimated useful life of such item of Equipment at the end of
the original lease term will be at least two years beyond the lease term
thereof.

23. PURCHASE OPTION. Lessor and Lessee hereby agree that so long as no default
shall have occurred and be continuing, Lessee shall have the option (and Lessor
shall have the right to obligate Lessee) to purchase the Equipment at the
expiration of the lease term for the purchase option price set forth in the
applicable Supplement. In order to exercise the option with respect to all of
the Equipment, Lessee must give Lessor written notice at least 90 days prior to
the expiration of the lease term with respect thereto, and remit the purchase
price in cash to Lessor or its assigns on or before said expiration date. After
receipt of the purchase price in accordance with this paragraph, Lessor will
transfer to Lessee all of its right, title and interest in the Equipment
purchased, as-is, where-is, without recourse, representation or warranty of any
kind, express or implied. Fair Market Sales Value for the purpose of this
paragraph only shall be determined on the basis of and be equal in amount to the
value that would be obtained in a transaction between an informed and willing
buyer and an informed and willing seller, and the cost of moving the Equipment
from the location of current use shall not be a deduction from such value.

24. CHOICE OF LAW. The rights and liabilities of the parties under this
Agreement, and each Supplement, shall be interpreted, enforced and governed in
all respects by the laws of the State of California. Lessee hereby consents and
subjects itself to the jurisdiction of every local, state, and federal court
within the State of California, and agrees that except as otherwise required by
law, Lessee shall never file or maintain any action or proceeding in connection
with this Agreement, or any Supplement in any court outside the State of
California. Lessee hereby agrees that service of process in connection with any
such action upon Lessee may be in the manner provided by the laws of the State
of California.

25. ATTORNEY FEES AND COSTS. Lessee will pay or reimburse Lessor for all costs
and expenses, including repossession, equipment disposition and court costs and
attorney's fees (including a reasonable fee for services of salaried counsel
employed by Lessor), not offset against amounts recovered or credited as
contemplated in paragraph 19, incurred by Lessor in exercising any of its rights
or remedies thereunder or enforcing any of the terms, conditions or provisions
hereof. This obligation includes the payment or reimbursement of all such
amounts whether an action is ultimately filed and whether an action filed is
ultimately dismissed.

26. HEADINGS FOR CONVENIENCE ONLY. The headings for the paragraphs and
provisions in this Master Lease, as well as the other documents constituting the
Agreement, are intended solely for convenience of reference and are not intended
nor shall they be used to construe, explain, modify or place any meaning upon
any provisions hereof.

27. MODIFICATION. Neither this Master Lease or any other document or Supplement
constituting the Agreement can be modified or amended except by written
agreement signed and dated by both Lessor and Lessee.

28. COUNTERPARTS. This Master Lease and any other document or Supplement
constituting the Agreement may be executed in any number of counterparts. Any
document executed in counterparts shall remain one document. Each counterpart is
an original instrument.

29. PROVISIONS SEVERABLE. Should any provision of the Agreement be determined to
be invalid or unenforceable, such invalidity or unenforceability shall not
affect the remaining provisions hereof.

30. ENTIRE AGREEMENT. This Master Lease, the Supplements, and all other
documents constituting the Agreement constitute the entire agreement between the
parties and no other representation or statements shall be deemed binding, nor
shall there be any reliance by either Lessor or Lessee upon any representations,
agreements, statements, promises, understandings, or inducements made which are
not embodied in the written Agreement.

Executed on November 1, 1999, at Cupertino, California.

                                By execution hereof, the undersigned hereby
                                certifies that he has read this Agreement, and
                                that he is duly authorized to execute this
                                Master Equipment Lease on behalf of Lessee.

                                LESSEE:
                                PACKETEER, INC.,
                                a Delaware corporation

                                By:  /s/ DAVID YNTEMA
                                   -----------------------------------
                                Name     David Yntema
                                    ----------------------------------
                                Title    Chief Financial Officer
                                     ---------------------------------

                                LESSOR:
                                PENTECH FINANCIAL SERVICES, INC.,
                                a California corporation

                                By:  /s/ BENJAMIN E. MILLERBIS
                                   -----------------------------------
                                         Benjamin E. Millerbis

                                Title:  President

<PAGE>   5

                        PENTECH FINANCIAL SERVICES, INC.

                        MASTER EQUIPMENT LEASE COMMITMENT

        Subject to the conditions set forth in this Master Equipment Lease
Commitment ("Commitment"), the following leasing transaction is agreed to by and
between PENTECH FINANCIAL SERVICES, INC., a California corporation ("Lessor")
and PACKETEER, INC., a Delaware corporation ("Lessee"), in connection with the
terms and conditions of Master Equipment Lease No. 300311 (the "Lease").

        1. MASTER EQUIPMENT LEASE with effective date of November 1, 1999.

        2. EQUIPMENT (all Equipment is to be acceptable to Lessor): Computers,
routers, hubs and software and other equipment to be approved by Lessor. A
percentage equal to 25% of the line amount but not more than 25% of any
individual schedule may be used for "soft cost" exclusions listed below.

        Exclusions: Custom use equipment, installation and delivery costs,
        purchase tax, tooling equipment, tenant improvements, software and items
        generally considered fungible or expendable.

        3. COMMITMENT AMOUNT. $1,500,000

        4. LEASE SUPPLEMENTS. This is a Master Equipment Lease transaction
whereby Supplements may be funded as Equipment is delivered. Supplements
scheduling Equipment to be subject to the Lease will each be for the term and on
the conditions set out herein. No individual Supplement shall be for less than
$50,000.

        5. TERM. Each Supplement under the Lease will be for an initial term of
48 months commencing on the first day of the calendar month following delivery
and acceptance of the Equipment on the Supplement.

        6. MONTHLY RENT PAYMENT: 2.491% (.02491) of original Equipment cost,
payable monthly in advance.

        7. COMMENCEMENT DATE. Monthly rent for each Supplement will commence on
the first day of the calendar month following delivery and acceptance of the
Equipment on the Supplement.

        8. INTERIM RENT. Interim rent will be charged for the period commencing
on delivery and acceptance of the Equipment on any particular Supplement and
ending the last day in that month, and will be the daily equivalent of the
Monthly Rent Payment, computed on a thirty (30) day month.

        9. COMMITMENT EXPIRATION DATE. November 30, 2000.

        Lessee acknowledges that Lessor will have no further obligations
        hereunder as to any item of Equipment not included on any Supplement
        under the Lease after the Commitment Expiration Date.

                                       1
<PAGE>   6

        10. RATE ADJUSTMENT. The Monthly Lease Rate Factor will be indexed to
the thirty (30) day London Inter Bank Offer Rate ("LIBOR") ("the "Index
Instrument") which on the date of the proposal was 4.92% (Wall Street Journal
dated May 27, 1999). The Monthly Lease Rate Factor shall be adjusted to provide
for any increase or decrease, with a floor of 4.92%. At the Commencement Date of
each Supplement, the Monthly Lease Rate Factor shall be fixed for the initial
term of such Supplement.

        11. DOCUMENTATION. Prior to Lessor issuing a purchase order for any item
of Equipment, Lessee will comply with, procure and/or execute, have executed,
acknowledge, have acknowledged, deliver to Lessor, record and file any
documents, or produce such evidence, facts or figures as set forth in Exhibit A
accompanying this Commitment, and will do likewise as to any further documents,
evidence, facts or figures that Lessor and its counsel may now or hereafter deem
necessary or advisable to protect Lessor's rights under the Lease and
Supplements and its interest in the Equipment. Lessee will pay as directed by
Lessor, or will reimburse Lessor on demand, for all costs, including legal,
appraisal, due diligence, title and lien searches, UCC recording, documentation
and other charges incurred by Lessor in connection with the Lease and
Supplements. The form, substance and sufficiency of all documents employed in
documenting the Lease and Supplements contemplated hereby must be acceptable to
Lessor and its counsel.

        12. TERMINATION. Lessor, in its sole discretion, retains the right to
delay or to cancel lease funding commitments if adverse change in Lessee's
financial condition occurs which has, in Lessor's sole discretion, impacted or
which may impact Lessee's credit capability. Lessor may, at its option,
terminate its obligation to Lessee hereunder (a) at or subsequent to the
Commitment Expiration Date; (b) upon the advent of a material adverse change, in
Lessor's sole discretion, in Lessee's financial condition or Lessee's probable
ability to perform its obligations under the Lease and Supplements; (c) if the
Lease, any Supplement, or any other agreement under which Lessee has the
obligation to Lessor is in default or an event which would constitute a default
under the Lease, any Supplement or any other agreement has occurred and is
continuing; or (d) with respect to any item if the shipping costs, installation
charges and design costs applicable thereto exceed more than fifteen percent
(15%) of its total cost to Lessor. Termination shall occur upon Lessor's giving
three (3) days written notice of termination to Lessee. In the event Lessor
elects to terminate its obligation to Lessee as described herein, Lessee will
purchase all of Lessor's right, title and interest in any Equipment which has
not yet been included on any Acceptance Supplement and thus not subject to the
Lease and Supplements thereto for the amount Lessor has paid or has become
obligated to pay on account thereof, plus interest on amounts actually paid at
the rate of eighteen percent (18%) per annum, or such greater or lesser contract
rate as may be applicable to Lessor, from the date paid to the date of Lessee's
repurchase. Lessee acknowledges that Lessee will, upon demand by Lessor, pay
directly to the appropriate party the amount of any invoice which may be
furnished to Lessor subsequent to inclusion of the applicable item of Equipment
on a Supplement.

        ACCEPTED AND AGREED to as of November 1, 1999.

LESSOR:                                 LESSEE:

PENTECH FINANCIAL SERVICES, INC.        PACKETEER, INC.
a California corporation                a Delaware corporation

By:     /s/ BENJAMIN E. MILLERBIS       By:    /s/ DAVID YNTEMA
        -------------------------              ---------------------------
        Benjamin E. Millerbis           Name   David Yntema
Its:    President                              ---------------------------
                                        Its:   Chief Financial Officer
                                               ---------------------------

                                       2
<PAGE>   7

                 EXHIBIT A TO MASTER EQUIPMENT LEASE COMMITMENT

These provisions hereby become part of the Equipment Lease Commitment for Master
Equipment Lease No. 300311 with effective date of Novemer 1, 1999, between
PENTECH FINANCIAL SERVICES, INC., Lessor, and PACKETEER, INC., Lessee.

In addition to the terms of the Master Equipment Lease Agreement (the
"Agreement"), Lessee further agrees to the following additional provisions:

1.      UCC SEARCH/RELEASES
        The Lessor may search all public records and filings of Lessee to locate
        and identify any conflicting liens against the Equipment. UCC releases
        from any intervening parties holding a security interest in said
        Equipment shall be required prior to funding any Supplement.

2.      TYPE OF LEASE
        This is a net lease transaction whereby maintenance, insurance, property
        taxes, and all items of a similar nature are solely for the account of
        the Lessee.

3.      EXPENSES
        All expenses associated with the lease transaction contemplated hereby
        including, but not limited to, UCC filing fees and searches,
        documentation costs, legal expenses, and equipment verification costs
        are solely for the account of the Lessee.

4.      LEASE DEPOSIT
        Lessee shall provide Lessor a Lease Deposit in the amount of $15,000.00,
        receipt of which is hereby acknowledged. This deposit shall be applied
        to Lessee's first monthly rent payment on a prorated basis for each
        Supplement funded under the Lease. The balance of any unapplied Lease
        Deposit as of the Commitment Expiration Date shall be deemed to have
        been earned by Lessor as of that date.

5.      COMMITMENT EXPIRATION
        The Commitment Expiration Date may be extended, in Lessor's sole
        discretion, upon review by Lessor of the Lessee's then current financial
        condition. Lessee agrees to provide Lessor such financial and other
        information as Lessor may reasonably request to evaluate Lessee's
        financial condition for purposes of granting such extension.

                ADDITIONAL EQUIPMENT LEASE COMMITMENT PROVISIONS:

A.      QUARTERLY FINANCIAL STATEMENTS
        Lessee agrees that for so long as any item of Equipment shall be leased
        under this Agreement, Lessee will deliver or cause to be delivered to
        Lessor (a) as soon as practicable, and in any event within 60 days after
        the end of each quarterly period (other than the fourth quarterly
        period) together with the related statements of income and expense for
        such quarterly period all in reasonable detail prepared in accordance
        with generally accepted accounting principles consistently applied
        throughout the period involved and certified by Lessee's chief financial
        officer; and (b) as soon as practicable, and in any event within 120
        days after the close of each fiscal year of Lessee, the audited balance
        sheet of Lessee as of the end of such fiscal year together with the
        related statements of income and surplus for such fiscal year all in
        reasonable detail, prepared in accordance with

                                       1
<PAGE>   8

        generally accepted accounting principles consistently applied throughout
        the period involved and certified by an independent certified public
        accountant acceptable to Lessor.

B.      ANNUAL FINANCIAL STATEMENTS
        Lessee agrees to provide Lessor with Lessee's annually audited financial
        statements within 120 days of the close of Lessee's fiscal year end.

C.      ADVANCE PAYMENTS
        The first and last month's rent under any Supplement will be payable
        prior to the Commencement Date of the Supplement.

D.      PURCHASE OPTION
        Lessee shall purchase all but not less than all of the equipment under
        any lease schedule at a price equal to 15% of its original cost at the
        end of the Initial Term ("Purchase Option").

E.      ADVERTISING
        During the term of any schedule or supplement under this Master Lease
        line, Lessor may publish, for the purpose of its own advertising and
        promotion only, via print and/or electronic media, the name and the logo
        of Lessee, together with the total amount of the Master Lease Line.

                                       2

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