Document:

<PAGE>   1
         EXHIBIT 10(a)(b) TO FRONTSTEP, INC. ANNUAL REPORT ON FORM 10-K

<PAGE>   2

                          TRADEMARK SECURITY AGREEMENT
                          ----------------------------

                  This TRADEMARK SECURITY AGREEMENT (this "Agreement"), dated as
of July 17, 2001 is made by FRONTSTEP, INC., an Ohio corporation, FRONTSTEP
SOLUTIONS GROUP, INC., an Ohio corporation, and BRIGHTWHITE SOLUTIONS, INC., an
Ohio corporation (each a "Debtor" and collectively, jointly and severally, the
"Debtors"), in favor of FOOTHILL CAPITAL CORPORATION, a California corporation,
as agent for the Lenders referred to below (the "Secured Party").

                                    RECITALS
                                    --------

                  A. The Debtors, Frontstep Canada, Inc., the financial
institutions party thereto from time to time (the "Lenders") and the Secured
Party have entered into that certain Loan and Security Agreement, of even date
herewith (as amended, restated, modified, renewed or extended from time to time,
the "Loan Agreement"), pursuant to which the Lenders have agreed (among other
things) to make loans to the Debtors in an aggregate principal amount at any one
time outstanding not to exceed the Maximum Revolver Amount (as defined in the
Loan Agreement), and pursuant to which the Debtors have granted to the Secured
Party for the benefit of the Lenders security interests in (among other things)
all or substantially all of the general intangibles of the Debtors.

                  B. Pursuant to the Loan Agreement and as one of the conditions
precedent to the obligations of the Secured Party and the Lenders under the Loan
Agreement, each of the Debtors have agreed to execute and deliver this Agreement
to the Secured Party for filing with the PTO and with any other relevant
recording systems in any domestic jurisdiction, and as further evidence of and
to effectuate the Secured Party's existing security interests in the trademarks
and other general intangibles described herein.

                                   ASSIGNMENT
                                   ----------

                  NOW, THEREFORE, for valuable consideration, the receipt and
adequacy of which are hereby acknowledged, each Debtor hereby agrees in favor of
the Secured Party as follows:

          1.       DEFINITIONS; INTERPRETATION.

                  (a) CERTAIN DEFINED TERMS. As used in this Agreement, the
following terms shall have the following meanings:

                  "DEBTORS" shall have the meaning ascribed to such term in the
recitals to this Agreement.

                  "DEBTOR" and "DEBTORS" shall have the meaning ascribed to such
terms in the introductory paragraph of this Agreement.

<PAGE>   3

                  "EVENT OF DEFAULT" means any Event of Default under the Loan
Agreement.

                  "PROCEEDS" means whatever is receivable or received from or
upon the sale, lease, license, collection, use, exchange or other disposition,
whether voluntary or involuntary, of any Trademark Collateral, including
"proceeds" as defined in UCC Section 9-102(a)(64), all insurance proceeds, and
all proceeds of Proceeds. Proceeds shall include (i) any and all accounts,
chattel paper, instruments, general intangibles, cash and other proceeds,
payable to or for the account of any Debtor, from time to time in respect of any
of the Trademark Collateral, (ii) any and all proceeds of any insurance,
indemnity, warranty or guaranty payable to or for the account of any Debtor from
time to time with respect to any of the Trademark Collateral, (iii) any and all
claims and payments (in any form whatsoever) made or due and payable to any
Debtor from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Trademark
Collateral by any Person acting under color of governmental authority, and (iv)
any and all other amounts from time to time paid or payable under or in
connection with any of the Trademark Collateral or for or on account of any
damage or injury to or conversion of any Trademark Collateral by any Person.

                  "PTO" means the United States Patent and Trademark Office and
any successor thereto.

                  "SECURED OBLIGATIONS" shall mean, with respect to each Debtor,
all liabilities, obligations, or undertakings owing by such Debtor to the
Secured Party and the Lenders of any kind or description arising out of or
outstanding under, advanced or issued pursuant to, or evidenced by the Loan
Agreement, any of the other Loan Documents, or this Agreement, irrespective of
whether for the payment of money, whether direct or indirect, absolute or
contingent, due or to become due, voluntary or involuntary, whether now existing
or hereafter arising, and including all interest (including interest that
accrues after the filing of a case under the Bankruptcy Code) and any and all
costs, fees (including attorneys fees), and expenses which such Debtor is
required to pay pursuant to any of the foregoing, by law, or otherwise.

                  "SECURED PARTY" shall have the meaning ascribed to such term
in the introductory paragraph of this Agreement.

                  "TRADEMARK COLLATERAL" has the meaning set forth in SECTION 2.

                  "TRADEMARKS" has the meaning set forth in SECTION 2.

                  "UCC" means the Uniform Commercial Code as in effect from time
to time in the State of New York.

                  "UNITED STATES" and "U.S." each mean the United States of
America.

                     (b) TERMS DEFINED IN UCC. Where applicable and except as
otherwise defined herein, terms used in this Agreement shall have the meanings
ascribed to them in the UCC.

                     (c) INTERPRETATION. In this Agreement, except to the extent
the context otherwise requires:

                                       2
<PAGE>   4

                  (i) Any reference to a Section or a Schedule is a reference to
         a section hereof, or a schedule hereto, respectively, and to a
         subsection or a clause is, unless otherwise stated, a reference to a
         subsection or a clause of the Section or subsection in which the
         reference appears.

                  (ii) The words "hereof," "herein," "hereto," "hereunder" and
         the like mean and refer to this Agreement as a whole and not merely to
         the specific Section, subsection, paragraph or clause in which the
         respective word appears.

                  (iii) The meaning of defined terms shall be equally applicable
         to both the singular and plural forms of the terms defined.

                  (iv) The words "including," "includes" and "include" shall be
         deemed to be followed by the words "without limitation."

                  (v) References to agreements and other contractual instruments
         shall be deemed to include all subsequent amendments, restatements,
         supplements, refinancings, renewals, extensions, and other
         modifications thereto.

                  (vi) References to statutes or regulations are to be construed
         as including all statutory and regulatory provisions consolidating,
         amending or replacing the statute or regulation referred to.

                  (vii) Any captions and headings are for convenience of
         reference only and shall not affect the construction of this Agreement.

                  (viii) Capitalized words not otherwise defined herein shall
         have the respective meanings assigned to them in the Loan Agreement.

                  (ix) In the event of a direct conflict between the terms and
         provisions of this Agreement and the Loan Agreement, it is the
         intention of the parties hereto that both such documents shall be read
         together and construed, to the fullest extent possible, to be in
         concert with each other. In the event of any actual, irreconcilable
         conflict that cannot be resolved as aforesaid, the terms and provisions
         of the Loan Agreement shall control and govern; PROVIDED, HOWEVER, that
         the inclusion herein of additional -------- ------- obligations on the
         part of any Debtor and supplemental rights and remedies in favor of the
         Secured Party (whether under New York law or applicable federal law),
         in each case in respect of the Trademark Collateral, shall not be
         deemed a conflict with the Loan Agreement.

         2. SECURITY INTEREST.

            (a) ASSIGNMENT AND GRANT OF SECURITY IN RESPECT OF THE SECURED
OBLIGATIONS. To secure the prompt payment and performance of the Secured
Obligations, each Debtor hereby grants, assigns, transfers and conveys to the
Secured Party for the benefit of the Lenders a continuing, first priority
security interest in all of such Debtor's right, title and interest in and to
the following property, whether now existing or hereafter acquired or arising
and whether registered or unregistered (collectively, the "Trademark
Collateral"):

                                       3
<PAGE>   5

                  (i) all common law, state and federal trademarks, service
         marks and trade names, corporate names, company names, business names,
         fictitious business names, trade styles, trade dress, logos, Internet
         domain names, other source or business identifiers, designs and general
         intangibles of like nature, now existing or hereafter adopted or
         acquired, together with and including all licenses therefor held by
         such Debtor, and all registrations and recordings thereof, and all
         applications filed or to be filed in connection therewith, including
         registrations and applications in the PTO, any State of the United
         States (but excluding each application to register any trademark,
         service mark, or other mark prior to the filing under applicable law of
         a verified and accepted Statement of Use (or the equivalent) for such
         trademark or service mark) and all extensions or renewals thereof,
         including without limitation any of the foregoing identified on
         SCHEDULE A hereto and any and all variations thereof (as such schedule
         may be amended, modified or supplemented from time to time), and the
         right (but not the obligation) to register claims under any state or
         federal trademark law or regulation and to apply for, renew and extend
         any of the same, to sue or bring opposition or cancellation proceedings
         in the name of the applicable Debtor or in the name of the Secured
         Party or in the name of the Secured Party for past, present or future
         infringement or unconsented use thereof, and all rights arising
         therefrom throughout the world (collectively, the "Trademarks");

                  (ii) all claims, causes of action and rights to sue for past,
         present or future infringement or unconsented use of any Trademarks and
         all rights arising therefrom and pertaining thereto;

                  (iii) all general intangibles (as defined in the UCC) related
         to or arising out of any of the Trademarks and all the goodwill of
         Debtors' business symbolized by the Trademarks or associated therewith;
         and

                  (iv) all Proceeds of any and all of the foregoing.

            (b) CONTINUING SECURITY INTEREST. Each Debtor hereby agrees that
this Agreement shall create a continuing security interest in the Trademark
Collateral which shall remain in effect until terminated in accordance with
SECTION 18.

            (c) INCORPORATION INTO LOAN AGREEMENT. This Agreement shall be fully
incorporated into the Loan Agreement and all understandings, agreements and
provisions contained in the Loan Agreement shall be fully incorporated into this
Agreement. Without limiting the foregoing, the Trademark Collateral described in
this Agreement shall constitute part of the Collateral in the Loan Agreement.

            (d) LICENSES. Anything in the Loan Agreement or this Agreement to
the contrary notwithstanding, each Debtor may grant exclusive or non-exclusive
licenses of the Trademark Collateral (subject to the security interest of the
Secured Party therein) in the ordinary course of business consistent with past
practice.

         3. FURTHER ASSURANCES; APPOINTMENT OF THE SECURED PARTY AS
ATTORNEY-IN-FACT. Each Debtor at its expense shall execute and deliver, or cause
to be executed and delivered, to

                                       4
<PAGE>   6

the Secured Party any and all documents and instruments, in form and substance
satisfactory to the Secured Party, and take any and all action, which the
Secured Party, in the exercise of its Permitted Discretion, may request from
time to time, to perfect and continue the perfection or to maintain the priority
of, or provide notice of the security interest in, or maintain, preserve and
protect the Trademark Collateral held by the Secured Party and to accomplish the
purposes of this Agreement. Each Debtor hereby irrevocably constitutes and
appoints the Secured Party (and any of the Secured Party's officers or employees
or agents designated by the Secured Party) as such Debtor's true and lawful
attorney-in-fact with full power and authority (i) if any Debtor refuses to
execute and deliver, or fails timely to execute and deliver, any of the
documents it is requested to execute and deliver by the Secured Party in
accordance with the foregoing after written notice of such request has been
delivered by the Secured Party to such Debtor and such Debtor has failed to do
so within ten (10) days thereof, the Secured Party shall have the right, in the
name of such Debtor, or in the name of the Secured Party or otherwise, without
notice to or assent by such Debtor, to sign the name of such Debtor on all or
any of such documents or instruments and perform all other acts that the Secured
Party in the exercise of its Permitted Discretion deems necessary or advisable
in order to perfect or continue the perfection of, maintain the priority or
enforceability of or provide notice of the security interest in the Trademark
Collateral held by the Secured Party, and (ii) after the occurrence and during
the continuance of any Event of Default, to execute any and all other documents
and instruments, and to perform any and all acts and things for and on behalf of
such Debtor, which the Secured Party, in the exercise of its Permitted
Discretion, may deem necessary or advisable to perfect or continue the
perfection of, maintain the priority or enforceability of, provide notice of the
security interest in the Trademark Collateral held by the Secured Party or
maintain, preserve and protect the Trademark Collateral and to accomplish the
purposes of this Agreement, including (A) to defend, settle, adjust or institute
any action, suit or proceeding with respect to the Trademark Collateral, (B) to
assert or retain any rights under any license agreement for any of the Trademark
Collateral, including any rights of such Debtor arising under Section 365(n) of
the Bankruptcy Code, and (C) to execute any and all applications, documents,
papers and instruments for the Secured Party to use the Trademark Collateral, to
grant or issue any exclusive or non-exclusive license with respect to any
Trademark Collateral, and to assign, convey or otherwise transfer title in or
dispose of the Trademark Collateral. The power of attorney set forth in this
SECTION 3, being coupled with an interest, is irrevocable so long as this
Agreement shall not have terminated in accordance with SECTION 18.

         4. REPRESENTATIONS AND WARRANTIES. Each Debtor jointly and severally
represents and warrants to the Secured Party, as follows:

            (a) NO OTHER TRADEMARKS. SCHEDULE A sets forth a true and correct
list of all of the existing Trademarks that are registered, or for which any
application for registration has been filed with the PTO or any corresponding
or similar trademark office of any other U.S. jurisdiction, and that are owned
or held (whether pursuant to a license or otherwise) and used by such Debtor.

            (b) TRADEMARKS SUBSISTING. Each of the Trademarks listed on
SCHEDULE A is subsisting and has not been adjudged invalid or unenforceable, in
whole or in part, and, to the best of such Debtor's knowledge, each of the
Trademarks set forth on SCHEDULE A is valid and enforceable.

                                       5
<PAGE>   7

         (c) OWNERSHIP OF TRADEMARK COLLATERAL; NO VIOLATION. Except as set
forth on Schedule 5.16(a) to the Loan Agreement, (i) such Debtor has rights in
and good and defensible title to the existing Trademark Collateral, (ii) with
respect to the Trademark Collateral shown on SCHEDULE A hereto as owned by it,
such Debtor is the sole and exclusive owner thereof, free and clear of any Liens
and rights of others (other than Permitted Liens), including licenses,
registered user agreements and covenants by such Debtor not to sue third
persons, and (iii) with respect to any Trademarks for which such Debtor is
either a licensor or a licensee pursuant to a license or licensing agreement
regarding such Trademark, each such license or licensing agreement is in full
force and effect, such Debtor is not in default of any of its obligations
thereunder and, other than (A) the parties to such licenses or licensing
agreements, or (B) in the case of any non-exclusive license or license agreement
entered into by such Debtor or any such licensor regarding such Trademark, the
parties to any other such non-exclusive licenses or license agreements entered
into by such Debtor or any such licensor with any other Person, no other Person
has any rights in or to any of the Trademark Collateral. To the best of each
Debtor's knowledge, the past, present and contemplated future use of the
Trademark Collateral by such Debtor has not, does not and will not infringe upon
or violate any right, privilege or license agreement of or with any other
Person.

         (d) NO INFRINGEMENT. To each Debtor's knowledge, except as set forth on
Schedule 5.16(a) to the Loan Agreement (i) no material infringement or
unauthorized use presently is being made of any of the Trademark Collateral by
any Person, and (ii) the past, present, and contemplated future use of the
Trademark Collateral by such Debtor has not, does not and will not infringe upon
or violate any right, privilege, or license agreement of or with any other
Person.

         (e) POWERS. Each Debtor has the unqualified right, power and authority
to pledge and to grant to the Secured Party a security interest in all of its
Trademark Collateral pursuant to this Agreement, and to execute, deliver and
perform its obligations in accordance with the terms of this Agreement, without
the consent or approval of any other Person except as already obtained.

      5. COVENANTS. Each Debtor covenants that so long as this Agreement
shall be in effect, each such Debtor shall:

         (a) COMPLIANCE WITH LAW. Comply, in all material respects, with all
applicable statutory and regulatory requirements in connection with any and all
of the Trademark Collateral and give such notice of trademark, prosecute such
material claims, and do all other acts and take all other measures which, in
such Debtor's reasonable business judgment, may be necessary or desirable to
preserve, protect and maintain such Trademark Collateral and all of such
Debtor's rights therein, including diligently prosecute any material trademark
application pending as of the date of this Agreement or thereafter;

         (b) COMPLIANCE WITH AGREEMENT. Comply with each of the terms and
provisions of this Agreement, the Loan Agreement, and the other Loan Documents,
and not enter into any agreement (for example, a license agreement) which is
inconsistent with the obligations of such Debtor under this Agreement without
the Secured Party's prior written consent; and

                                       6
<PAGE>   8

             (c) LIEN PROTECTION. Not permit the inclusion in any contract to
which such Debtor becomes a party of any provision that could impair or prevent
the creation of security interests in favor of the Secured Party in such
Debtor's rights and interest in the Trademark and the Trademark Collateral, and
each such Debtor will promptly give the Secured Party written notice of the
occurrence of any event that could have a material adverse effect on any of the
Trademark or the Trademark Collateral, including any petition under the
Bankruptcy Code filed by or against any licensor of any of the Trademarks for
which such Debtor is a licensee.

         6. FUTURE RIGHTS. For so long as any of the Secured Obligations shall
remain outstanding, or, if earlier, until the Secured Party shall have released
or terminated, in whole but not in part, its interest in the Trademark
Collateral, if and when any Debtor shall obtain rights to any new Trademarks, or
any reissue, renewal or extension of any Trademarks, the provisions of SECTION 2
shall automatically apply thereto and the applicable Debtor shall give to the
Secured Party prompt notice thereof. Each Debtor shall do all things deemed
necessary or advisable by the Secured Party in the exercise of its Permitted
Discretion to ensure the validity, perfection, priority and enforceability of
the security interests of the Secured Party in such future acquired Trademark
Collateral. If any Debtor refuses to execute and deliver, or fails timely to
execute and deliver, any of the documents it is requested in writing to execute
and deliver by the Secured Party in connection herewith, each Debtor hereby
authorizes the Secured Party to modify, amend or supplement the Schedules hereto
and to re-execute this Agreement from time to time on such Debtor's behalf and
as its attorney-in-fact to include any future Trademarks which are or become
Trademark Collateral and to cause such re-executed Agreement or such modified,
amended or supplemented Schedules to be filed with the PTO.

         7. DUTIES OF THE SECURED PARTY. Notwithstanding any provision contained
in this Agreement, the Secured Party shall have no duty to exercise any of the
rights, privileges or powers afforded to it and shall not be responsible to the
Debtors or any other Person for any failure to do so or delay in doing so.
Except for the accounting for moneys actually received by the Secured Party
hereunder or in connection herewith, the Secured Party shall have no duty or
liability to exercise or preserve any rights, privileges or powers pertaining to
the Trademark Collateral.

         8. [INTENTIONALLY OMITTED]

         9. REMEDIES. From and after the occurrence and during the continuation
of an Event of Default, the Secured Party shall have all rights and remedies
available to it under the Loan Agreement, any other Loan Documents and
applicable law (which rights and remedies are cumulative) with respect to the
security interests in any of the Trademark Collateral or any other Collateral.
Each Debtor hereby agrees that such rights and remedies include the right of the
Secured Party as a secured party to sell or otherwise dispose of the Trademark
Collateral after default, pursuant to UCC Section 9-610. Each Debtor hereby
agrees that the Secured Party shall at all times have such royalty-free
licenses, to the extent permitted by law and the Loan Documents, for any
Trademark Collateral that is reasonably necessary to permit the exercise of any
of the Secured Party's rights or remedies upon or after the occurrence of (and
during the continuance of) an Event of Default with respect to (among other
things) any tangible asset of such Debtor in which the Secured Party has a
security interest, including the Secured Party's

                                       7
<PAGE>   9

rights to sell inventory, tooling or packaging which is acquired by such Debtor
(or its successor, assignee or trustee in bankruptcy). In addition to and
without limiting any of the foregoing, upon the occurrence and during the
continuance of an Event of Default, the Secured Party shall have the right but
shall in no way be obligated to bring suit, or to take such other action as the
Secured Party deems necessary or advisable, in the name of any Debtor or the
Secured Party, to enforce or protect any of the Trademark Collateral, in which
event any such Debtor shall, at the request of the Secured Party, do any and all
lawful acts and execute any and all documents required by the Secured Party in
aid of such enforcement. To the extent that the Secured Party shall elect not to
bring suit to enforce such Trademark Collateral after the occurrence and during
the continuation of an Event of Default, the applicable Debtor agrees to use all
reasonable measures and its diligent efforts, whether by action, suit,
proceeding or otherwise, to prevent the infringement, misappropriation or
violations thereof by others and for that purpose agrees diligently to maintain
any action, suit or proceeding against any Person necessary to prevent such
infringement, misappropriation or violation.

         10. BINDING EFFECT. This Agreement shall be binding upon, inure to the
benefit of and be enforceable by each of the Debtors and the Secured Party and
their respective successors and assigns.

         11. NOTICES. All notices and other communications hereunder shall be in
writing and shall be mailed, sent or delivered in accordance with the Loan
Agreement.

         12. GOVERNING LAW. This Agreement shall be governed by, and construed
and enforced in accordance with, the laws of the State of New York, except to
the extent the validity or perfection of the security interests hereunder in
respect of any Trademark Collateral are governed by federal law, in which case
such choice of New York law shall not be deemed to deprive the Secured Party of
such rights and remedies as may be available under federal law.

         13. ENTIRE AGREEMENT; AMENDMENT. This Agreement and the Loan Agreement,
together with the Schedules hereto and thereto, contain the entire agreement of
the parties with respect to the subject matter hereof and supersede all prior
drafts and communications relating to such subject matter. Neither this
Agreement nor any provision hereof may be modified, amended or waived except by
the written agreement of the parties as provided in the Loan Agreement.
Notwithstanding the foregoing, the Secured Party may reexecute this Agreement or
modify, amend or supplement the Schedules hereto as provided in SECTION 6
hereof.

         14. SEVERABILITY. If one or more provisions contained in this Agreement
shall be invalid, illegal or unenforceable in any respect in any jurisdiction or
with respect to any party, such invalidity, illegality or unenforceability in
such jurisdiction or with respect to such party shall, to the fullest extent
permitted by applicable law, not invalidate or render illegal or unenforceable
any such provision in any other jurisdiction or with respect to any other party,
or any other provisions of this Agreement.

         15. COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute but one and the same agreement.

                                       8
<PAGE>   10

         16. LOAN AGREEMENT. Each Debtor acknowledges that the rights and
remedies of the Secured Party with respect to the security interest in the
Trademark Collateral granted hereby are more fully set forth in the Loan
Agreement and all such rights and remedies are cumulative.

         17. NO INCONSISTENT REQUIREMENTS. Each Debtor acknowledges that this
Agreement and the other Loan Documents may contain covenants and other terms and
provisions variously stated regarding the same or similar matters, and each
Debtor agrees that all such covenants, terms and provisions are cumulative and
all shall be performed and satisfied in accordance with their respective terms.

         18. TERMINATION. Upon the payment and performance in full in cash of
the Secured Obligations, including the cash collateralization, expiration, or
cancellation of all Secured Obligations, if any, consisting of letters of
credit, and the full and final termination of any commitment to extend any
financial accommodations under the Loan Agreement, this Agreement shall
terminate, and the Secured Party shall execute and deliver such documents and
instruments and take such further action reasonably requested by Debtors and at
Debtors' expense, as shall be reasonably necessary to evidence termination of
the security interests granted by Debtors to the Secured Party.

                            [Signature page follows]

                                        9
<PAGE>   11

                  IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement, as of the date first above written.

                                          FRONTSTEP, INC.
                                          FRONTSTEP SOLUTIONS GROUP, INC.
                                          BRIGHTWHITE SOLUTIONS, INC.,
                                          each an Ohio corporation

                                          By: /s/ Daniel P. Buettin
                                              -------------------------------
                                              Name: Daniel P.Buettin
                                              Title:  Vice President & CFO

                                          FOOTHILL CAPITAL CORPORATION,
                                           a California corporation

                                          By: /s/ Katy J. Brooks
                                              -------------------------------
                                              Name:  Katy J. Brooks
                                              Title:  V.P.

<PAGE>   12

STATE OF  New York                    )
                                      ) ss
COUNTY OF  New York                   )

                  On July 17, 2001, before me, Tom Caplis, Notary Public,
personally appeared Daniel P. Buettin, personally known to me (or proved to me
on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.

                  WITNESS my hand and official seal.

                                     /s/ Thomas W. Caplis
                                     -------------------------
                                     Signature

[SEAL]

STATE OF  New York                    )
                                      ) ss
COUNTY OF  New York                   )

                  On July 17, 2001, before me, Tom Caplis, Notary Public,
personally appeared Katy J. Brooks, personally known to me (or proved to me on
the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity(ies)
upon behalf of which the person(s) acted, executed the instrument.

                  WITNESS my hand and official seal.

                                      /s/ Thomas W. Caplis
                                     -----------------------------------------
                                     Signature

[SEAL]

<PAGE>   13

                                       A-1
                                   SCHEDULE A
                       to the Trademark Security Agreement

                 TRADEMARKS OF FRONTSTEP SOLUTIONS GROUP, INC.

REGISTRATIONS AND PENDING APPLICATIONS (EXCLUDING INTENT-TO USE APPLICATIONS)
<TABLE>
<CAPTION>
------------------------- -------------------- ----------------------- ------------------------ ----------------------
                                                                            Registration/           Registration/
          Type               Jurisdiction               Mark              Application Date         Application No.
          ----               ------------               ----              ----------------         --------------
------------------------- -------------------- ----------------------- ------------------------ ----------------------
<S>                     <C>                    <C>                   <C>                       <C>
Mark                      US                   SYTECENTRE              27-Jul-98                75/526,359
------------------------- -------------------- ----------------------- ------------------------ ----------------------
Mark                      US                   PUTTING YOUR            16-May-2000              2,350,110
                                               CUSTOMERS FIRST
------------------------- -------------------- ----------------------- ------------------------ ----------------------
Mark                      US                   SOLUTION SERVER         08-Oct-96                2,007,093
------------------------- -------------------- ----------------------- ------------------------ ----------------------
Mark                      US                   SYMIX                   16-May-2000              2,350,217
------------------------- -------------------- ----------------------- ------------------------ ----------------------
Mark                      US                   SYMIX                   04-Sep-90                1,611,920
------------------------- -------------------- ----------------------- ------------------------ ----------------------
Mark                      US                   SYTEAPS                 06-June-2000             2,355,181
------------------------- -------------------- ----------------------- ------------------------ ----------------------
Mark                      US                   SYTELINE                23-Dec-97                2,123,552
------------------------- -------------------- ----------------------- ------------------------ ----------------------
Mark                      US                   SYTEPOWER               14-Jul-98                2,172,499
------------------------- -------------------- ----------------------- ------------------------ ----------------------
</TABLE>

Common Law Trademarks

FRONTSTEP
FRONTSTEP FRONT OFFICE

                                      A-1<PAGE>   1
EXHIBIT 10(a)(c) TO FRONTSTEP, INC. ANNUAL REPORT ON FORM 10-K
<PAGE>   2

                      INTERCOMPANY SUBORDINATION AGREEMENT

                  THIS intercompany SUBORDINATION AGREEMENT (this "Agreement"),
dated as of July 17, 2001, is made among the Obligors (as defined below), and
FOOTHILL CAPITAL CORPORATION, a California corporation ("Foothill"), as agent
for the Lender Group (in such capacity, together with its successors, if any, in
such capacity, "Agent").

                  WHEREAS, certain of the Obligors and the Lender Group are
parties to that certain Loan and Security Agreement dated as of even date
herewith (as amended, modified, renewed, extended, or replaced from time to
time, the "Loan Agreement"), pursuant to which the Lender Group has agreed to
make certain financial accommodations to one or more of the Obligors;

                  WHEREAS, each Obligor has made or may make certain loans or
advances from time to time to one or more other Obligors;

                  WHEREAS, each Obligor has agreed to the subordination of such
indebtedness of each other Obligor to such Obligor, upon the terms and subject
to the conditions set forth in this Agreement.

                  NOW, THEREFORE, in consideration of the mutual promises,
covenants, conditions, representations, and warranties set forth herein and for
other good and valuable consideration, the parties hereto agree as follows:

                  SECTION 1. DEFINITIONS; INTERPRETATION.

                  (a) TERMS DEFINED IN LOAN AGREEMENT. All capitalized terms
used in this Agreement and not otherwise defined herein shall have the meanings
assigned to them in the Loan Agreement.

                  (b) CERTAIN DEFINED TERMS. As used in this Agreement, the
following terms shall have the following meanings:

                  "Insolvency Event" has the meaning set forth in Section 3.

                  "Lender Group" shall mean, individually and collectively, each
of the Lenders and Foothill, in its capacity as "Agent" (as such term is defined
in the Loan Agreement) for the Lenders.

                  "Lenders" means, individually and collectively, each of the
financial institutions (including Foothill) listed on the signature pages of the
Loan Agreement and any other Person made a party thereto in accordance with the
provisions of Section 14.1 thereof (together with their respective successors
and assigns).

<PAGE>   3

                  "Obligors" means, individually and collectively, jointly and
severally, Frontstep, Inc., an Ohio corporation, Frontstep Solutions Group,
Inc., an Ohio corporation, brightwhite solutions, inc., an Ohio corporation,
Frontstep Canada, Inc., an Ontario corporation, and any other Obligor that now
or in the future executes and delivers a joinder to the Loan Agreement as a
"Borrower".

                  "Senior Debt" means the Obligations and other indebtedness and
liabilities of the Obligors to Lender Group under or in connection with the Loan
Agreement and the other Loan Documents, including all unpaid principal of the
Advances and the Term Loan, all interest accrued thereon, all fees due under the
Loan Agreement and the other Loan Documents, and all other amounts payable by
the Obligors to the Lender Group thereunder or in connection therewith, whether
now existing or hereafter arising, and whether due or to become due, absolute or
contingent, liquidated or unliquidated, determined or undetermined.

                  "Subordinated Debt" means, with respect to each Obligor, all
indebtedness, liabilities, and other obligations of any other Obligor owing to
such Obligor in respect of any and all loans or advances made by such Obligor to
such other Obligor whether now existing or hereafter arising, and whether due or
to become due, absolute or contingent, liquidated or unliquidated, determined or
undetermined, including all fees and all other amounts payable by any other
Obligor to such Obligor under or in connection with any documents or instruments
related thereto.

                  "Subordinated Debt Payment" means any payment or distribution
by or on behalf of the Obligors, directly or indirectly, of assets of the
Obligors of any kind or character, whether in cash, property, or securities,
including on account of the purchase, redemption, or other acquisition of
Subordinated Debt, as a result of any collection, sale, or other disposition of
collateral, or by setoff, exchange, or in any other manner, for or on account of
the Subordinated Debt.

                  (c) INTERPRETATION. Unless the context of this Agreement
clearly requires otherwise, references to the plural include the singular,
references to the singular include the plural, the term "including" is not
limiting, and the term "or" has, except where otherwise indicated, the inclusive
meaning represented by the phrase "and/or." The words "hereof," "herein,"
"hereby," "hereunder," and similar terms in this Agreement refer to this
Agreement as a whole and not to any particular provision of this Agreement.
Section, subsection, clause, schedule, and exhibit references are to this
Agreement unless otherwise specified. References to agreements and other
contractual instruments shall be deemed to include all subsequent amendments and
other modifications thereto. References to statutes or regulations are to be
construed as including all statutory and regulatory provisions consolidating,
amending, or replacing the statute or regulation referred to. The captions and
headings are for convenience of reference only and shall not affect the
construction of this Agreement.

                  SECTION 2. SUBORDINATION TO PAYMENT OF SENIOR DEBT. As to each
Obligor, all payments on account of the Subordinated Debt shall be subject,
subordinate, and junior, in right of payment and exercise of remedies, to the
extent and in the manner set forth herein, to the prior payment, in full, in
cash or cash equivalents of the Senior Debt.

                                       2
<PAGE>   4

                  SECTION 3. SUBORDINATION UPON ANY DISTRIBUTION OF ASSETS OF
THE OBLIGORS. As to each Obligor, in the event of any payment or distribution of
assets of any other Obligor of any kind or character, whether in cash, property,
or securities, upon the dissolution, winding up, or total or partial liquidation
or reorganization, readjustment, arrangement, or similar proceeding relating to
such other Obligor or its property, whether voluntary or involuntary, or in
bankruptcy, insolvency, receivership, arrangement, or similar proceedings or
upon an assignment for the benefit of creditors, or upon any other marshaling or
composition of the assets and liabilities of such other Obligor, or otherwise
(such events, collectively, the "Insolvency Events"): (i) all amounts owing on
account of the Senior Debt shall first be paid, in full, in cash, or payment
provided for in cash or in cash equivalents, before any Subordinated Debt
Payment is made; and (ii) to the extent permitted by applicable law, any
Subordinated Debt Payment to which such Obligor would be entitled except for the
provisions hereof, shall be paid or delivered by the trustee in bankruptcy,
receiver, assignee for the benefit of creditors, or other liquidating agent
making such payment or distribution directly to the Agent for application to the
payment of the Senior Debt in accordance with clause (i), after giving effect to
any concurrent payment or distribution or provision therefor to the Agent in
respect of such Senior Debt.

                  SECTION 4. PAYMENTS ON SUBORDINATED DEBT.

                  (a) PERMITTED PAYMENTS. So long as no Event of Default has
occurred and is continuing, each Obligor may make, and each other Obligor shall
be entitled to accept and receive, payments on account of the Subordinated Debt.

                  (b) NO PAYMENT UPON SENIOR DEBT DEFAULTS. Upon the occurrence
of any Event of Default, and until such Event of Default is cured or waived,
each Obligor shall not make, and each other Obligor shall not accept or receive,
any Subordinated Debt Payment.

                  Section 5. SUBORDINATION OF REMEDIES. As long as any Senior
Debt shall remain outstanding and unpaid, following the occurrence of any Event
of Default and until such Event of Default is cured or waived, each Obligor
shall not, without the prior written consent of the Agent:

                  (a) accelerate, make demand, or otherwise make due and payable
prior to the original due date thereof any Subordinated Debt or bring suit or
institute any other actions or proceedings to enforce its rights or interests in
respect of the obligations of any other Obligor owing to such Obligor;

                  (b) exercise any rights under or with respect to guaranties of
the Subordinated Debt, if any;

                  (c) exercise any rights to set-offs and counterclaims in
respect of any indebtedness, liabilities, or obligations of such Obligor to any
other Obligor against any of the Subordinated Debt; or

                  (d) commence, or cause to be commenced, or join with any
creditor other than the Agent on behalf thereof in commencing, any bankruptcy,
insolvency, or receivership proceeding against the other Obligor.

                                       3
<PAGE>   5

                  SECTION 6. PAYMENT OVER TO THE AGENT. In the event that,
notwithstanding the provisions of SECTIONS 3, 4, AND 5, any Subordinated Debt
Payments shall be received in contravention of such SECTIONS 3, 4, AND 5 by any
Obligor before all Senior Debt is paid, in full, in cash or cash equivalents,
such Subordinated Debt Payments shall be held in trust for the benefit of the
Agent and shall be paid over or delivered to the Agent for application to the
payment, in full, in cash or cash equivalents of all Senior Debt remaining
unpaid to the extent necessary to give effect to such SECTIONS 3, 4, AND 5,
after giving effect to any concurrent payments or distributions to the Agent in
respect of the Senior Debt.

                  SECTION 7. AUTHORIZATION TO THE AGENT. If, while any
Subordinated Debt is outstanding, any Insolvency Event shall occur and be
continuing with respect to another Obligor or its property: (i) the Agent is
hereby irrevocably authorized and empowered (in the name of each Obligor or
otherwise), but shall have no obligation, to demand, sue for, collect, and
receive every payment or distribution in respect of the Subordinated Debt and
give acquittance therefor and to file claims and proofs of claim and take such
other action (including voting the Subordinated Debt) as it may deem necessary
or advisable for the exercise or enforcement of any of the rights or interests
of the Lender Group; and (ii) each Obligor shall promptly take such action as
the Agent reasonably may request (A) to collect the Subordinated Debt for the
account of the Lender Group and to file appropriate claims or proofs of claim in
respect of the Subordinated Debt, (B) to execute and deliver to the Agent such
powers of attorney, assignments, and other instruments as it may request to
enable it to enforce any and all claims with respect to the Subordinated Debt,
and (C) to collect and receive any and all Subordinated Debt Payments.

                  SECTION 8. CERTAIN AGREEMENTS OF EACH OBLIGOR.

                  (a) NO BENEFITS. Each Obligor understands that there may be
various agreements between the Lender Group and any other Obligor evidencing and
governing the Senior Debt, and each Obligor acknowledges and agrees that such
agreements are not intended to confer any benefits on such Obligor and that the
Lender Group and Agent on behalf thereof shall have no obligation to such
Obligor or any other Person to exercise any rights, enforce any remedies, or
take any actions which may be available to them under such agreements.

                  (b) NO INTERFERENCE. Each Obligor acknowledges that each other
Obligor has granted to Agent for the benefit of the Lender Group security
interests in all of such other Obligor' assets, and agrees not to interfere with
or in any manner oppose a disposition of any Collateral by the Lender Group or
Agent on behalf thereof in accordance with applicable law.

                  (c) RELIANCE BY THE LENDER GROUP. Each Obligor acknowledges
and agrees that the Lender Group will have relied upon and will continue to rely
upon the subordination provisions provided for herein and the other provisions
hereof in entering into the Loan Documents and making or issuing the Loans
thereunder.

                  (d) WAIVERS. Except as provided under the Loan Agreement, each
Obligor hereby waives any and all notice of the incurrence of the Senior Debt or
any part thereof and any right to require marshaling of assets.

                                       4
<PAGE>   6

                  (e) OBLIGATIONS OF EACH OBLIGOR NOT AFFECTED. Each Obligor
hereby agrees that at any time and from time to time, without notice to or the
consent of such Obligor except as otherwise provided in the Loan Agreement,
without incurring responsibility to such Obligor, and without impairing or
releasing the subordination provided for herein or otherwise impairing the
rights of the Lender Group hereunder: (i) the time for any other Obligor's
performance of or compliance with any of its agreements contained in the Loan
Documents may be extended or such performance or compliance may be waived by the
Lender Group or Agent on behalf thereof; (ii) the agreements of any other
Obligor with respect to the Loan Documents may from time to time be modified by
such other Obligor and the Lender Group or Agent on behalf thereof for the
purpose of adding any requirements thereto or changing in any manner the rights
and obligations of such other Obligor or the Lender Group thereunder; (iii) the
manner, place, or terms for payment of Senior Debt or any portion thereof may be
altered or the terms for payment extended, or the Senior Debt may be renewed in
whole or in part; (iv) the maturity of the Senior Debt may be accelerated in
accordance with the terms of any present or future agreement by any other
Obligor and the Lender Group or Agent on behalf thereof; (v) any Collateral may
be sold, exchanged, released, or substituted and any Lien in favor of Agent for
the benefit of the Lender Group may be terminated, subordinated, or fail to be
perfected or become unperfected; (vi) any Person liable in any manner for Senior
Debt may be discharged, released, or substituted; and (vii) all other rights
against the other Obligor, any other Person, or with respect to any Collateral
may be exercised (or the Lender Group or Agent on behalf thereof may waive or
refrain from exercising such rights).

                  (f) RIGHTS OF THE LENDER GROUP NOT TO BE IMPAIRED. No right of
the Lender Group or Agent on behalf thereof to enforce the subordination
provided for herein or to exercise its other rights hereunder shall at any time
in any way be prejudiced or impaired by any act or failure to act by any other
Obligor, the Lender Group, or Agent hereunder or under or in connection with the
other Loan Documents or by any noncompliance by the other Obligor with the terms
and provisions and covenants herein or in any other Loan Document, regardless of
any knowledge thereof the Lender Group or Agent on behalf thereof may have or
otherwise be charged with.

                  (g) FINANCIAL CONDITION OF THE OBLIGORS. Except as provided
under the Loan Agreement, each Obligor shall not have any right to require the
Lender Group to obtain or disclose any information with respect to: (i) the
financial condition or character of any other Obligor or the ability of the
other Obligor to pay and perform Senior Debt; (ii) the Senior Debt; (iii) the
Collateral or other security for any or all of the Senior Debt; (iv) the
existence or nonexistence of any guarantees of, or any other subordination
agreements with respect to, all or any part of the Senior Debt; (v) any action
or inaction on the part of the Lender Group or any other Person; or (vi) any
other matter, fact, or occurrence whatsoever.

                  (h) ACQUISITION OF LIENS OR GUARANTIES. Each Obligor shall
not, without the prior consent of Agent, acquire any right or interest in or to
any Collateral not owned by such Obligor or accept any guaranties for the
Subordinated Debt except as permitted under the Loan Agreement.

                                       5

<PAGE>   7

                  SECTION 9. SUBROGATION.

                  (a) SUBROGATION. Until the payment and performance in full of
all Senior Debt and the termination of the Loan Agreement, each Obligor shall
not have, and shall not directly or indirectly exercise, any rights that it may
acquire by way of subrogation under this Agreement, by any payment or
distribution to the Lender Group hereunder or otherwise. Upon the payment and
performance in full of all Senior Debt, each Obligor shall be entitled to
exercise in full any subrogated rights it may possess with respect to the rights
of the Lender Group to receive payments or distributions applicable to the
Senior Debt until the Subordinated Debt shall be paid in full. For the purposes
of the foregoing subrogation, no payments or distributions to the Lender Group
of any cash, property, or securities to which any Obligor would be entitled
except for the provisions of Section 3, 4, or 5 shall, as among such Obligor,
its creditors (other than the Lender Group), and the other Obligors, be deemed
to be a payment by the other Obligors to or on account of the Senior Debt.

                  (b) PAYMENTS OVER TO THE OBLIGORS. If any payment or
distribution to which any Obligor would otherwise have been entitled but for the
provisions of Section 3, 4, or 5 shall have been applied pursuant to the
provisions of Section 3, 4, or 5 to the payment of all amounts payable under the
Senior Debt, such Obligor shall be entitled to receive from the Lender Group any
payments or distributions received by the Lender Group in excess of the amount
sufficient to pay in full all amounts payable under or in respect of the Senior
Debt. If any such excess payment is made to the Lender Group, the Lender Group
shall promptly remit such excess to such Obligor and until so remitted shall
hold such excess payment for the benefit of such Obligor.

                  SECTION 10. CONTINUING AGREEMENT; REINSTATEMENT.

                  (a) CONTINUING AGREEMENT. This Agreement is a continuing
agreement of subordination and shall continue in effect and be binding upon each
Obligor until payment and performance in full of the Senior Debt. The
subordinations, agreements, and priorities set forth herein shall remain in full
force and effect regardless of whether any party hereto in the future seeks to
rescind, amend, terminate, or reform, by litigation or otherwise, its respective
agreements with the other Obligor.

                  (b) REINSTATEMENT. This Agreement shall continue to be
effective or shall be reinstated, as the case may be, if, for any reason, any
payment of the Senior Debt by or on behalf of any other Obligor shall be
rescinded or must otherwise be restored by the Lender Group, whether as a result
of an Insolvency Event or otherwise.

                  SECTION 11. TRANSFER OF SUBORDINATED DEBT. Each Obligor may
not assign or transfer its rights and obligations in respect of the Subordinated
Debt except to another Obligor without the prior written consent of Agent, and
any such transferee or assignee, as a condition to acquiring an interest in the
Subordinated Debt shall agree to be bound hereby, in form satisfactory to Agent.

                  SECTION 12. OBLIGATIONS OF THE OBLIGORS NOT AFFECTED. The
provisions of this Agreement are intended solely for the purpose of defining the
relative rights of each Obligor

                                      6
<PAGE>   8

against the other Obligors, on the one hand, and of the Lender Group and Agent
on behalf thereof against the other Obligors, on the other hand. Nothing
contained in this Agreement shall (i) impair, as between each Obligor and the
other Obligors, the obligation of the other Obligors to pay their respective
obligations with respect to the Subordinated Debt as and when the same shall
become due and payable, or (ii) otherwise affect the relative rights of each
Obligor against the other Obligors, on the one hand, and of the creditors (other
than the Lender Group) of the other Obligors against the other Obligors, on the
other hand.

                  SECTION 13. ENDORSEMENT OF OBLIGOR DOCUMENTS; FURTHER
ASSURANCES AND ADDITIONAL ACTS.

                  (a) ENDORSEMENT OF OBLIGOR DOCUMENTS. At the request of Agent,
all documents and instruments evidencing any of the Subordinated Debt, if any,
shall be endorsed with a legend noting that such documents and instruments are
subject to this Agreement, and each Obligor shall promptly deliver to Agent
evidence of the same.

                  (b) FURTHER ASSURANCES AND ADDITIONAL ACTS. Each Obligor shall
execute, acknowledge, deliver, file, notarize, and register at its own expense
all such further agreements, instruments, certificates, financing statements,
documents, and assurances, and perform such acts as Agent reasonably shall deem
necessary or appropriate to effectuate the purposes of this Agreement, and
promptly provide Agent with evidence of the foregoing reasonably satisfactory in
form and substance to Agent.

                  SECTION 14. NOTICES. All notices and other communications
provided for hereunder shall, unless otherwise stated herein, be in writing
(including by facsimile transmission) and shall be mailed, sent, or delivered in
accordance with the notice provisions contained in the Loan Agreement.

                  SECTION 15. NO WAIVER; CUMULATIVE REMEDIES. No failure on the
part of the Lender Group or Agent on behalf thereof to exercise, and no delay in
exercising, any right, remedy, power, or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right,
remedy, power, or privilege preclude any other or further exercise thereof or
the exercise of any other right, remedy, power, or privilege. The rights and
remedies under this Agreement are cumulative and not exclusive of any rights,
remedies, powers, and privileges that may otherwise be available to the Lender
Group.

                  SECTION 16. COSTS AND EXPENSES.

                  (a) PAYMENTS BY THE OTHER OBLIGOR. Each of the Obligors
jointly and severally agrees to pay to Agent for the benefit of the Lender Group
on demand the reasonable out-of-pocket costs and expenses of the Lender Group,
and the reasonable fees and disbursements of counsel to the Lender Group, in
connection with the negotiation, preparation, execution, delivery, and
administration of this Agreement, and any amendments, modifications, or waivers
of the terms thereof.

                  (b) PAYMENTS BY THE OBLIGORS. Each of the Obligors jointly and
severally agrees to pay to Agent for the benefit of the Lender Group on demand
all costs and expenses of

                                       7
<PAGE>   9

the Lender Group, and the fees and disbursements of counsel, in connection with
the enforcement or attempted enforcement of, and preservation of rights or
interests under, this Agreement, including any losses, costs and expenses
sustained by the Lender Group as a result of any failure by such Obligor to
perform or observe its obligations contained in this Agreement.

                  SECTION 17. SURVIVAL. All covenants, agreements,
representations and warranties made in this Agreement shall, except to the
extent otherwise provided herein, survive the execution and delivery of this
Agreement, and shall continue in full force and effect so long as any Senior
Debt remains unpaid. Without limiting the generality of the foregoing, the
obligations of each Obligor under Section 16 shall survive the satisfaction of
the Senior Debt.

                  SECTION 18. BENEFITS OF AGREEMENT. This Agreement is entered
into for the sole protection and benefit of the parties hereto and their
successors and assigns, and no other Person shall be a direct or indirect
beneficiary of, or shall have any direct or indirect cause of action or claim in
connection with, this Agreement.

                  SECTION 19. BINDING EFFECT. This Agreement shall be binding
upon, inure to the benefit of and be enforceable by each Obligor and the Lender
Group and their respective successors and permitted assigns.

                  SECTION 20. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                  SECTION 21. SUBMISSION TO JURISDICTION. EACH OBLIGOR HEREBY
(i) SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK
AND THE FEDERAL COURTS OF THE UNITED STATES SITTING IN THE COUNTY OF New York,
STATE OF new york, FOR THE PURPOSE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT, (ii) AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH COURTS, OR AT THE SOLE
OPTION OF AGENT, IN ANY OTHER COURT IN WHICH AGENT SHALL INITIATE LEGAL OR
EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE MATTER
IN CONTROVERSY (iii) IRREVOCABLY WAIVES (TO THE EXTENT PERMITTED BY APPLICABLE
LAW) ANY OBJECTION WHICH IT NOW OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF
ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY OF THE FOREGOING COURTS, AND ANY
OBJECTION ON THE GROUND THAT ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM AND (iv) AGREES THAT A FINAL JUDGMENT IN
ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PERMITTED BY LAW.

                                       8

<PAGE>   10

                  SECTION 22. ENTIRE AGREEMENT; AMENDMENTS AND WAIVERS.

                  (a) ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement of each of the Obligors and the Lender Group with respect to the
matters set forth herein and supersedes any prior agreements, commitments,
drafts, communications, discussions, and understandings, oral or written, with
respect thereto.

                  (b) AMENDMENTS AND WAIVERS. No amendment to any provision of
this Agreement shall in any event be effective unless the same shall be in
writing and signed by each of the Obligors and Agent; and no waiver of any
provision of this Agreement, or consent to any departure by any Obligor
therefrom, shall in any event be effective unless the same shall be in writing
and signed by Agent. Any such amendment, waiver, or consent shall be effective
only in the specific instance and for the specific purpose for which given.

                  SECTION 23. CONFLICTS. In case of any conflict or
inconsistency between any terms of this Agreement, on the one hand, and any
documents or instruments in respect of the Subordinated Debt, on the other hand,
then the terms of this Agreement shall control.

                  SECTION 24. SEVERABILITY. Whenever possible, each provision of
this Agreement shall be interpreted in such manner as to be effective and valid
under all applicable laws and regulations. If, however, any provision of this
Agreement shall be prohibited by or invalid under any such law or regulation in
any jurisdiction, it shall, as to such jurisdiction, be deemed modified to
conform to the minimum requirements of such law or regulation, or, if for any
reason it is not deemed so modified, it shall be ineffective and invalid only to
the extent of such prohibition or invalidity without affecting the remaining
provisions of this Agreement or the validity or effectiveness of such provision
in any other jurisdiction.

                  SECTION 25. INTERPRETATION. This Agreement is the result of
negotiations between, and have been reviewed by the respective counsel to, the
Obligors and the several members of the Lender Group and is the product of all
parties hereto. Accordingly, this Agreement shall not be construed against the
Lender Group merely because of the Lender Group's involvement in the preparation
hereof.

                  SECTION 26. COUNTERPARTS. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute but one and the same agreement.

                  SECTION 27. TERMINATION OF AGREEMENT. Upon payment and
performance in full of the Senior Debt and the termination of the Loan
Agreement, this Agreement shall terminate and Agent on behalf of the Lender
Group shall promptly execute and deliver to each Obligor such documents and
instruments as shall be necessary to evidence such termination; provided,
however, that the obligations of each Obligor under Section 16 shall survive
such termination.

                  SECTION 28. ADDITIONAL OBLIGORS. The initial Obligors
hereunder shall be such of the Obligors as are signatories hereto as of the date
hereof. From time to time subsequent to

                                       9
<PAGE>   11

the date hereof, additional Obligors, as required by the Loan Agreement or the
other Loan Documents, may become parties hereto, as additional Obligors (each,
an "Additional Obligor"), by executing and delivering a counterpart of this
Agreement. Upon delivery of any such counterpart to Agent, notice of which is
hereby waived by any other Obligor, each such Additional Obligor shall be an
Obligor and shall be as fully a party hereto as if such Additional Obligor were
an original signatory hereof. Each Obligor expressly agrees that its obligations
arising hereunder shall not be affected or diminished by the addition or release
of any other Obligor hereunder. This Agreement shall be fully effective as to
any Obligor that is or becomes a party hereto regardless of whether any other
Person becomes or fails to become or ceases to be an Obligor hereunder.

                            [Signature pages follow.]

                                       10
<PAGE>   12

                  IN WITNESS WHEREOF, the undersigned has duly executed and
delivered this Agreement as of the date first written above.

                                  FRONTSTEP, INC.,
                                  an Ohio corporation

                                  By:  /s/ Daniel P. Buettin
                                       ------------------------------------
                                        Name:  Daniel P. Buettin
                                        Title:  Vice President & CFO

                                  FRONTSTEP SOLUTIONS GROUP, INC.,
                                  an Ohio corporation

                                  By:  /s/ Daniel P. Buettin
                                       ------------------------------------
                                        Name:  Daniel P. Buettin
                                        Title:  Vice President & CFO

                                  BRIGHTWHITE SOLUTIONS, INC.,
                                  an Ohio corporation

                                  By:  /s/ Daniel P. Buettin
                                       ------------------------------------
                                        Name:  Daniel P. Buettin
                                        Title:  Vice President & CFO

                                  FRONTSTEP CANADA, INC.,
                                  an Ontario corporation

                                  By:  /s/ Daniel P. Buettin
                                       ------------------------------------
                                        Name:  Daniel P. Buetin
                                        Title:  Vice President & CFO

                                      S-1

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