Document:

<PAGE>
                                                                   EXHIBIT 10.11

                            555 TWIN DOLPHIN PLAZA

                       CROSSROUTE SOFTWARE, INCORPORATED
                           a California corporation
<PAGE>

                            BASIC LEASE INFORMATION

                                 OFFICE LEASE

Lease Date:                       March 28, 1997

Landlord:                         SPIEKER PROPERTIES, L.P.
                                  a California limited partnership

Address of Landlord:              555 Twin Dolphin Drive
                                  Suite #110
                                  Redwood City, California 94065

Tenant:                           CROSSROUTE SOFTWARE, INCORPORATED
                                  a California corporation

Address of Tenant:                555 Twin Dolphin Drive
                                  Suite #190
                                  Redwood City, California 94065

Contact:                          Mr. Ken Ross  Telephone:  (415) 596-1300

Premises:                         Approximately 5,255 rentable square feet on
                                  the first floor of the building located at 555
                                  Twin Dolphin Drive, Redwood City, California,
                                  94065, as shown in the attached Exhibit "B"

Scheduled Term Commencement Date:               June 1, 1997

Scheduled Length of Term:                       Sixty (60) Months

Scheduled Term Expiration Date:                 May 31, 2002

Rent:                                           See Addendum #1, Rent, attached
                                                hereto and made a part hereof.

Security Deposit:                               $17,079

Tenant's Proportionate Share:                   2.65%

Permitted Use:                                  General Office

Occupancy Density:                              3.3/1,000 sqft

The foregoing Basic Lease Information is incorporated into and made a part of
this Lease. Each reference in this Lease to any of the Basic Lease Information
shall mean the respective information above set forth and shall be construed to
incorporate all of the terms provided under the particular Lease paragraph
pertaining to such information. In the event of any conflict between the Basic
Lease Information and the Lease, the latter shall control.

LANDLORD:                               TENANT:

SPIEKER PROPERTIES, L.P.                CROSSROUTE SOFTWARE, INCORPORATED
------------------------                ---------------------------------
a California limited partnership        a California corporation

   By: Spieker Properties, Inc.
       a Maryland corporation

   Its: General Partner

By  /s/ Peter H. Schnugg            By     /s/ Kenneth Ross
    --------------------------          -----------------------------
    Peter H. Schnugg                       Kenneth Ross

Its  Senior Vice President          Its    President
     -------------------------          -----------------------------

Date:                               Date:

      4-7-97                               3/31/97
     -------------------------          -----------------------------
<PAGE>

                                     LEASE

                               TABLE OF CONTENTS

<TABLE>
               <S>                                                             <C>
                   Basic Lease Information
               1.  Premises                                                     3
               2.  Occupancy                                                    3
               3.  Term and Possession                                          3
               4.  Rent                                                         3
               5.  Restrictions On Use                                          4
               6.  Compliance With Laws                                         4
               7.  Alterations                                                  4
               8.  Repairs                                                      4
               9.  Liens                                                        5
               10. Assignment and Subletting                                    5
               11. Insurance and Indemnification                                6
               12. Waiver of Subrogation                                        7
               13. Services and Utilities                                       7
               14. Estoppel Certificate                                         8
               15. Security Deposit                                             8
               16. Substitution                                                 8
               17. Holding Over                                                 8
               18. Subordination                                                8
               19. Rules and Regulations                                        9
               20. Re-entry by Landlord                                         9
               21. Default by Tenant                                            9
               22. Damage by Fire, Etc.                                        11
               23. Eminent Domain                                              11
               24. Sale by Landlord and Tenant's Remedies                      12
               25. Right of Landlord To Perform                                12
               26. Surrender of Premises                                       12
               27. Waiver                                                      12
               28. Notices                                                     13
               29. Rental Adjustments                                          13
               30. Taxes Payable by Tenant                                     15
               31. Successors and Assigns                                      15
               32. Attorneys' Fees                                             15
               33. Light and Air                                               15
               34. Public Transportation Information                           15
               35. Miscellaneous                                               16
               36. Lease Effective Date                                        16

                   Signatures                                                  16
                   Addendum #1 - 3                                             17

                   Exhibit A        Rules and Regulations
                   Exhibit B        Outline of Premises, Suite #180
                   Exhibit D        Form of Tenant Certificate
</TABLE>
<PAGE>

                                     LEASE
                                     -----

THIS LEASE is made this of this 28th day of March, 1997 , between Spieker
                                ----        ------   --           ------
Properties, L.P. a California limited partnership (hereinafter called
-------------------------------------------------
"Landlord") and CrossRoute Software Incorporated, a California corporation
                ----------------------------------------------------------
hereinafter "Tenant").

PREMISES

1.   Landlord leases to Tenant and Tenant leases from Landlord those premises
     (hereinafter called "Premises") outlined in red on Exhibit B attached
     hereto and made a part hereof, specified in the Basic Lease Information
     attached hereto. The Premises may be all or part of the building (the
     "Building") or of the project (the "Project") which may consist of more
     than one building.

OCCUPANCY

2.   Tenant shall use the Premises for the Permitted Use and for no other use or
     purpose without the prior written consent of Landlord. No increase in
     occupant density of the Leased Premises shall be made which shall add to
     the burden of such use of the Building as determined by Landlord without
     the prior written consent of Landlord.

TERM AND POSSESSION

3.   (a)  The parties project that the term shall commence on the Scheduled
          Term Commencement Date and, except as otherwise provided herein or in
          any exhibit or addendum hereto, shall continue in full force until the
          Term Expiration Date. If the Premises are not delivered by Landlord by
          the Scheduled Term Commencement Date for any reason, Landlord shall
          not be liable to Tenant for any loss or damage resulting from such
          delay. The Term Commencement Date shall be the first day of the
          calendar month next following the earlier of (i) the day when the
          Premises are substantially complete, or (ii) the date on which Tenant
          takes possession of, or commences the operation of its business in
          some or all of the Premises. If substantial completion occurs prior to
          the Scheduled Term Commencement Date, Tenant shall take occupancy.
          Landlord shall provide Tenant as much notice as circumstances allow of
          the date when Landlord expects to achieve substantial completion,
          based upon the progress of work. Should the Term Commencement Date be
          a date other than the Scheduled Term Commencement Date, either
          Landlord or Tenant, at the request of the other shall execute a
          declaration specifying the Term Commencement Date and the rent
          commencement date which shall be binding upon the parties as to the
          matters therein stated. Tenant's obligation to pay Rent and its other
          obligations for payment under this Lease shall commence upon the
          earlier of (i) the day when the Premises are substantially complete,
          or (ii) the date on which Tenant takes possession of, or commences the
          operation of its business in some or all of the Premises.

     (c)  The Premises shall be substantially complete and possession shall be
          delivered when (i) installation of Building Standard Work (which shall
          not include installation of telephone and other communication
          facilities or equipment, finish work and decoration to be performed by
          Tenant) has occurred, (ii) Tenant has direct access from the street to
          the elevator lobby on the floor where the Premises are located (iii)
          Landlord is in a position to furnish Building services to the
          Premises, and (iv) Landlord's architect shall certify substantial
          completion with respect to the premises, whether or not substantial
          completion of the Building itself shall have occurred. Substantial
          completion shall be deemed to have occurred notwithstanding a
          requirement to complete "punchlist" or similar corrective work.

RENT

4.   Tenant shall pay to Landlord throughout the Term Rent as specified in the
     Basic Lease Information, payable in equal monthly installments in advance
     on the first day of each calendar month during every year of the Term in
     lawful money of the United States, without deduction or offset whatsoever,
     to Landlord at the address specified in the Basic Lease Information or to
     such other firm or to such other place as Landlord may from time to time
     designate in writing by notice given as herein provided. Rent for the first
     month of the Term shall be paid by Tenant upon execution of this Lease. If
     the obligation for payment of Rent commences on other than the first day of
     a month as provided in paragraph 3(a), then Rent provided for such partial
     month shall be prorated and the prorated installment shall be paid on the
     first day of the calendar month next succeeding the Term Commencement Date.
     If the Term terminates on other than the last day of a calendar month, then
     the Rent provided for such partial month shall be prorated and the prorated
     installment shall be paid on the first day of the calendar month next
     preceding the date of termination.

                                       3
<PAGE>

RESTRICTIONS ON USE

5.   Tenant shall not do or permit anything to be done in or about the Premises
     which will in any way obstruct or interfere with the rights of other
     tenants or occupants of the Building or injure or annoy them, nor use or
     allow the Premises to be used for any improper, immoral, unlawful or
     objectionable purposes, nor shall Tenant cause or maintain or permit any
     nuisance in, on or about the Premises. Tenant shall not commit or suffer
     the commission of any waste in, on or about the Premises.

COMPLIANCE WITH LAWS

6.   Tenant shall not use the Premises or permit anything to be done in or about
     the Premises which will in any way conflict with any law, statute,
     ordinance or governmental rule or regulation now in force or which may
     hereafter be enacted or promulgated. Tenant shall not do or permit anything
     to be done on or about the Premises or bring or keep anything therein which
     will in any way increase the rate of any insurance upon the Building or any
     of its contents or cause a cancellation or said insurance or otherwise
     affect said insurance in any manner, and Tenant shall at its sole cost and
     expense promptly comply with all laws, statutes, ordinances and
     governmental rules, regulations or requirements now in force or which may
     hereafter be in force and with the requirements of any board of fire
     underwriters or other similar body now or hereafter constituted relating to
     or affecting the condition, use or occupancy of the Premises, excluding
     structural changes not related to or affected by alterations or
     improvements made by or for Tenant or Tenant's acts. The judgement of any
     court of competent jurisdiction or the admission of Tenant in any actions
     against Tenant, whether Landlord be a party thereto or not, that Tenant has
     so violated any such law, statute, ordinance, rule, regulation or
     requirement, shall be conclusive of such violation as between Landlord and
     Tenant.

ALTERATIONS

7.   Tenant shall not make or suffer to be made any alterations, additions or
     improvements in, on or to the Premises or any part thereof without the
     prior written consent of Landlord; and any such alterations, additions or
     improvements in, on or to said Premises, except for Tenant's movable
     furniture and equipment, shall immediately become Landlord's property and,
     at the end of the Term, shall remain on the Premises without compensation
     to Tenant. In the event Landlord consents to the making of any such
     alteration, addition or improvement by Tenant, the same shall be made by
     Tenant, at Tenant's sole cost and expense, in accordance with plans and
     specifications approved by Landlord, and any contractor or person selected
     by Tenant to make the same must first be approved in writing by Landlord.
     Notwithstanding the foregoing, Tenant shall be permitted to make non-
     structural alterations or additions, the costs of which do not exceed
     $1,000 per work of improvement, without Landlord's written approval.

     Notwithstanding the foregoing, Landlord, shall agree to allow Tenant to
     contract with outside licensed contractors for installation of additional
     approved tenant work for Tenant's account, subject to review and approval
     of all work and contractors by Landlord. Landlord shall have the right to
     collect from Tenant a supervision fee equal to 15% of the total direct
     costs associated with Tenant's improvements to the Premises, per the terms
     of Paragraph 7. Upon the expiration or sooner termination of the Term,
     Tenant shall upon demand by Landlord, at Tenant's sole cost and expense,
     with all due diligence remove all those alterations, additions or
     improvements made by or for the account of Tenant, designated by Landlord
     to be removed and Tenant shall with all due diligence, at its sole cost and
     expense, repair and restore the Premises to their original condition. At
     Landlord's election and notwithstanding the foregoing, however, Tenant
     shall pay to Landlord the cost of removing any such alterations, additions
     or improvements and restoring the Premises to their original condition such
     cost to include a reasonable charge for Landlord's overhead and profit as
     provided above, and such amount may be deducted from the Security Deposit
     or any other sums or amounts held by Landlord under this Lease.

REPAIRS

8.   By taking possession of the Premises, Tenant accepts the Premises as being
     in the condition in which Landlord is obligated to deliver them and
     otherwise in good order, condition and repair. At all times during the Term
     Tenant shall, at Tenant's sole cost and expense, keep the Premises and
     every part thereof in good order, condition and repair, excepting damage
     thereto by fire, earthquake, act of God or other elements. Tenant waives
     all right it may have under Section 1942 of the Civil Code of the State of
     California and any similar law, statues or ordinance now or hereafter in
     effect (to the full extent that such waiver may lawfully be given)
     authorizing or purporting to authorize Tenant to make repairs to or for the
     account of Landlord. Tenant shall upon the expiration or sooner termination
     of the Term hereof, unless Landlord demands otherwise pursuant to paragraph
     7 hereof, surrender to Landlord the Premises and all repairs, changes,
     alterations, additions and improvements thereto in the same condition as
     when received or when first installed, damage by fire, earthquake, act of
     God or the elements excepted, Landlord has no obligation to alter, remodel,
     improve, repair, decorate or paint the Premises or any part thereof, except
     as specified in the Office Lease Improvement Agreement and no
     representations respecting the condition of the Premises or the Building
     have been made by Landlord to Tenant, except as specifically set forth
     therein or in the Office Lease Improvement Agreement.

                                       4
<PAGE>

LIENS

9.   Tenant shall keep the Premises free from liens arising out of or related to
     work performed, materials or supplies furnished or obligations incurred by
     Tenant or in connection with work made, suffered or done by Tenant in
     Premises or Building. In the event that Tenant shall not, within ten (10)
     days following the imposition of any such lien, cause the same to be
     released of record by payment or posting of a proper bond, Landlord shall
     have, in addition to all other remedies provided herein and by law, the
     right, but no obligation, to cause the same to be released by such means as
     it shall deem proper, including payment of the claim giving rise to such
     lien. Landlord shall have the right at all times to post and keep posted on
     the Premises any notices permitted or required by law, or which Landlord
     shall deem proper, for the protection of Landlord, the Premises, the
     Building and any other party having an interest therein, from mechanics'
     and materialmen's liens, and Tenant shall give Landlord not less than ten
     (10) business days prior written notice of the commencement of any work in
     the Building or Premises which could lawfully give rise to a claim for
     mechanics' or materialmen's liens.

ASSIGNMENT AND SUBLETTING

10.  Tenant shall not sell, assign, encumber or otherwise transfer this Lease or
     any interest therein (by operation of law or otherwise), sublet the
     Premises or any part thereof or suffer any other person to occupy or use
     the Premises or any portion thereof, nor shall Tenant permit any lien to be
     placed on Tenant's interest under this Lease by operation of law except in
     accordance with the provisions of this paragraph 10. For purposes hereof,
     sales, transfers or assignments of (i) a controlling interest in the stock
     of Tenant, if Tenant is a corporation, or of (ii) the general partnership
     interests sufficient to control management decisions if Tenant is a
     partnership or of (iii) the majority or controlling underlying beneficial
     interest, if Tenant is any other form of business entity, shall constitute
     an assignment subject to the terms of this paragraph 10.

     (a)  In the event that Tenant should desire to sublet the Premises or any
          part thereof, Tenant shall provide Landlord with written notice of
          such desire at least ninety (90) days in advance of the date on which
          Tenant desires to make such sublease. Landlord shall then have a
          period of thirty (30) days following receipt of such notice within
          which to notify Tenant in writing that Landlord elects either (i) to
          terminate this Lease as to the space so affected as of the date so
          specified by Tenant, in which event Tenant shall be relieved of all
          further obligations hereunder as to such space from and after that
          date, or (ii) to permit Tenant to sublet such space, subject, however,
          to the prior written approval of the proposed Sublessee by Landlord
          which said consent shall not be unreasonably withheld. If Landlord
          should fail to notify Tenant in writing of its election within said
          thirty (30) day period, Landlord shall be deemed to have waived option
          (i) above, but written approval of the proposed Sublessee shall still
          be required. Refusal by Landlord to approve a proposed Sublessee shall
          not constitute a termination of this Lease. In exercising its right of
          consent to a Sublessee it shall be reasonable for Landlord to withhold
          consent to any Sublessee who (aa) does not agree to assume the
          obligations of the Lease with respect to the space to be so sublet,
          (bb) does not agree to utilize the space so sublet for the Permitted
          Use, (cc) is of unsound financial condition as determined by Landlord,
          or (dd) will, in Landlord's opinion increase the occupant density in
          the Leased Premises. If Tenant proposes to sublease less than all of
          the Premises, election by Landlord of termination of this Lease with
          respect to space to be so sublet shall leave this Lease in full force
          and effect with respect to the remainder of the space, the Rent and
          Tenant's Proportionate Share of Operating Expenses and taxes shall be
          adjusted on a pro rata basis to reflect the reduction in Net Rentable
          Area of the Premises as retained by Tenant. This Lease as so amended
          shall continue thereafter in full force and effect and references
          herein to the Premises shall mean that portion thereof as to which the
          Lease has not been terminated.

     (b)  Tenant shall not enter into any other transaction subject to this
          paragraph 10 without Landlord's prior written consent which said
          consent shall not be unreasonably withheld. It shall be reasonable for
          Landlord to withhold consent to any proposed transaction described in
          this paragraph 10 on any of the grounds specified in paragraph 10 (a)
          with respect to sublessee's or any other reasonable grounds.

     (c)  Any rent or other consideration realized by Tenant under any such
          sublease or assignment to which Landlord has consented hereunder, in
          excess of the Rent payable hereunder, after amortization or the
          reasonable cost of the improvements over the remainder of the Term for
          which Tenant has paid and reasonable subletting and assignment costs,
          shall be divided and paid ninety percent (90%) to Landlord and ten
          percent (10%) to Tenant.

     (d)  Any subletting hereunder by Tenant shall not result in Tenant being
          released or discharged from any liability under this lease. Any
          purported assignment, subletting or other transaction to which
          paragraph 10 applies, which occurs contrary to the provisions hereof,
          shall be void. Landlord's consent to any assignment, subletting or
          other transaction to which this paragraph 10 applies shall not release
          Tenant from any of Tenant's obligations hereunder or constitute a
          consent with respect to any subsequent transaction to which this
          paragraph applies.

                                       5
<PAGE>

INSURANCE AND INDEMNIFICATION

11.  (a)  Landlord shall not be liable to Tenant and Tenant hereby waives all
          claims against Landlord for any injury or damage to any person or
          property in or about the Premises by or from any cause whatsoever
          (other than Landlord's gross negligence or willful misconduct) and,
          without limiting the generality of the foregoing, whether caused by
          water leakage of any character from the roof, walls, basement or other
          portion of the Premises or the Building, or caused by gas, fire, oil
          or electricity in, on or about the Premises or the Building.

     (b)  Tenant shall hold Landlord harmless from and defend Landlord against
          any and all claims or liability for any injury or damage to any person
          or properly whatsoever; (i) occurring in, on, or about the Premises or
          any part thereof, or (ii) occurring in, on or about any facilities
          (including, without prejudice to the generality of the term
          "facilities", elevators, stairways, lobbies, health clubs, passageways
          or hallways), the use of which Tenant may have in conjunction with
          other tenants of the Building, when such injury or damage shall be
          caused in part or in whole by the act, neglect, fault of or omission
          of any duty with respect to the same by Tenant, its agents, servants,
          employees or invitees. Tenant shall further indemnify and save
          Landlord harmless against and from any and all claims by or on behalf
          of any person, firm or corporation arising from the conduct or
          management of any work or thing whatsoever done by Tenant in or about
          or from transactions of Tenant concerning the Premises, and will
          further indemnify and save Landlord harmless against and from any and
          all claims arising from any breach or default on the part of Tenant in
          the performance of any covenant or agreement on the part of Tenant to
          be performed pursuant to the terms of this Lease or arising from any
          act or negligence of Tenant, or any of its agents, contractors,
          servants, employees or licensees, and from and against all costs,
          counsel fees, expenses and liabilities incurred in connection with any
          such claim or action or proceeding brought thereon. In case any action
          or proceeding is brought against Landlord by reason of any claims or
          liability within the limits of the foregoing indemnity, Tenant shall
          defend such action or proceeding at Tenant's sole expense by counsel
          reasonably satisfactory to Landlord.

     (c)  Landlord shall hold Tenant harmless from and defend Tenant against any
          and all claims or liability for any injury or damage to any person or
          property occurring in or about any facilities (including, without
          prejudice to the generality of the term "facilities", elevators,
          stairways, passageways or hallways), the use of which Tenant may have
          in conjunction with other tenants of the building, when such injury or
          damage shall be caused in whole or in part by the act, neglect, fault
          of or omission of any duty with respect to the same by Landlord, its
          agents, servants, employees or invitees. Landlord shall further
          indemnify and save Tenant harmless against and from any and all claims
          by or on behalf of any person, firm or corporation arising from the
          conduct or management of any work or thing whatsoever done by Landlord
          in or about, or from transactions of Landlord concerning, the Premises
          where such work is not being done for the account of Tenant; and
          Landlord will further indemnify and save Tenant harmless against and
          from any and all claims arising from any breach or default on the part
          of Landlord in the performance of any covenant or agreement on the
          part of Landlord to be performed pursuant to the terms of this Lease
          or arising from any act or negligence of Landlord, or any of its
          agents, contractors, servants, employees or licensees, and from and
          against all costs, counsel fees, expenses and liabilities incurred in
          connection with any such claims or action or proceeding brought
          thereon. In case any action or proceeding is brought against Tenant by
          reason of any claims or liability within the limits of the foregoing
          indemnity, Landlord shall defend such action or proceeding at
          Landlord's sole expense by counsel reasonably satisfactory to Tenant.

     (d)  The provisions of paragraph 11 (b) and 11 (c) shall survive the
          expiration or termination of this Lease with respect to any claims or
          liability occurring prior to such expiration or termination.

     (e)  Tenant shall purchase at its own expense and keep in force during the
          Term of this Lease a policy or policies of workers' compensation and
          comprehensive liability insurance, including personal injury and
          property damage, in the amount of Five Hundred Thousand Dollars
          ($500,000.00) for property damage and Two Million Dollars
          ($2,000,000.00) per occurrence for personal injuries or deaths of
          persons occurring in or about the Premises. The foregoing limits shall
          be increased in proportion to increases during the Term in the United
          States Department of Labor, Bureau of Labor Statistics, Cost of Living
          Index, All Urban consumers (1967=100) for the region in which the
          Leased Premises are located. Said policies shall: (i) name Landlord
          and any party holding an interest to which this Lease may be
          subordinated under paragraph 18 hereof, as additional insureds, and
          insure Landlord's contingent liability under this Lease; (ii) be
          issued by an insurance company acceptable to Landlord and licensed to
          do business in the State of California; and (iii) provide that said
          insurance shall not be cancelled unless ten (10) days prior written
          notice shall have been given to Landlord. Said policy or policies or
          certificates thereof shall be delivered to Landlord by Tenant upon
          commencement of the term of this Lease and upon each renewal of said
          insurance.

                                       6
<PAGE>

WAIVER OF SUBROGATION

12. To the extent permitted by law and without affecting the coverage provided
    by insurance required to be maintained hereunder Landlord and Tenant each
    waive any right to recover against the other (i) damages for injury, to or
    death of persons, (ii) damages to property (iii) damage to the Premises or
    any part thereof, (ix,) damage to the Braiding or any part thereof, or (v)
    claims arising by reason of the foregoing, but only to the extent that any
    of the foregoing damages and/or claims referred to above are covered (and
    only to the extent of such coverage) by insurance actually carried by either
    Landlord or Tenant. This provision is intended to waive fully, and for the
    benefit of each party, any rights and/or claims which might give rise to a
    right of subrogation on any insurance carrier. The coverage obtained by each
    party pursuant to this Lease shall include, but without limitation, a waiver
    of subrogation by the carrier which conforms to the provisions of this
    paragraph.

SERVICES AND UTILITIES

13. (a)   Landlord shall maintain the public and common areas of the Building,
          including lobbies, stairs, elevators, corridors and restrooms, the
          windows in the Building, the mechanical, plumbing and electrical
          equipment serving the Building, and the structure itself, in
          reasonably good order and condition except for damage occasioned by
          the act of Tenant, which damage shall be repaired by Landlord at
          Tenant's expense.

    (b)   Provided Tenant shall not be in default hereunder, and subject to the
          provisions elsewhere herein contained and to the rules and regulations
          of the Building, Landlord shall furnish to the Premises during
          ordinary business hours of generally recognized business days to be
          determined by Landlord (but exclusive, in any event, of Saturdays,
          Sundays and legal holidays), water and electricity suitable for the
          Permitted Uses of the Premises, heat and air conditioning required in
          Landlord's judgement for the comfortable use and occupation of the
          Premises for the Permitted Uses, janitorial services during the times
          and in the manner that such services are, in Landlord's judgement,
          customarily furnished in comparable buildings in the immediate market
          area, and elevator service which shall mean service either by
          nonattended automatic elevators or elevators with attendants, or both,
          at the option of Landlord. Landlord shall have no obligation to
          provide additional or after-hours heating or air-conditioning, but if
          Landlord elects to provide such services at Tenant's request, Tenant
          shall pay to Landlord a reasonable charge for such services as
          determined by Landlord. Tenant agrees to keep and cause to be kept
          closed all window coverings when necessary because of the sun's
          position, and Tenant agrees at all times to cooperate fully with
          Landlord and to abide by all the regulations and requirements which
          Landlord may prescribe for the proper functioning and protection of
          heating, ventilating and air-conditioning systems. Wherever heat-
          generating machines, excess lighting or equipment are used in the
          Premises which affect the temperature otherwise maintained by the air
          conditioning system, Landlord reserves the right to install
          supplementary air-conditioning units in the Premises, and the cost
          thereof, including the cost of installation and the cost of operating
          and maintenance thereof, shall be paid by Tenant to Landlord upon
          demand by Landlord.

    (c)   Tenant shall not without written consent of Landlord use any apparatus
          or device in the Premises, including without limitation, electronic
          data processing machines, punch card machines and machines using
          excess lighting or using current in excess of that which is determined
          by Landlord as reasonable and normal for the Permitted Use or which
          will in any way increase the amount of electricity or water usually
          furnished or supplied for the Permitted uses of the Premises; not
          connect with electric current, except through existing electrical
          outlets in the Premises or water pipes, any apparatus or device for
          the purposes of using electrical current or water. If Tenant shall
          require water or electrical current or any other resource in excess of
          that usually furnished or supplied for the Permitted Use of the
          Premises, Tenant shall first procure the consent of Landlord which
          Landlord may refuse, to the use thereof, and Landlord may cause a
          special meter to be installed in the Premises so as to measure the
          amount of water, electrical current or other resource consumed for any
          such other use. Tenant shall pay directly to Landlord as an addition
          to and separate from payment of Basic Operating Costs the cost of all
          such energy, utility service and meters (and of installation,
          maintenance and repair thereof). Landlord may add to the metered
          charge a recovery of additional expense incurred in keeping account of
          the water, electrical current or other resource so consumed. Landlord
          shall not be liable for any damages directly or indirectly resulting
          from, nor shall the Rent herein reserved be abated by reason of (i)
          the installation, use or interruption of use of any equipment in
          connection with the furnishing of any of the foregoing utilities and
          services, (ii) failure to furnish or delay in furnishing any such
          utilities or services when such failure or delay is caused by acts of
          God or the elements, labor disturbances of any character, any other
          accidents or other conditions beyond the reasonable control of
          Landlord, or by making of repairs or improvements to the Premises or
          to the Building, or (iii) the limitation, curtailment, rationing or
          restriction on use of water, electricity, gas or any other form of
          energy or any other service or utility whatsoever serving the Premises
          or the Building. Landlord shall be entitled to cooperate voluntarily
          and in a reasonable manner with the efforts of national, state or
          local government agencies or utility suppliers in reducing energy or
          other resource consumption. The obligation to make services available
          hereunder shall be subject to the limitations of any such voluntary,
          reasonable program.

    (d)   Any sums payable under this paragraph 13 shall constitute Additional
          Rent hereunder.

                                       7
<PAGE>

ESTOPPEL CERTIFICATE

14.  Within ten (10) days following any written request which Landlord may make
     from time to time, Tenant shall execute and deliver to Landlord a
     certificate substantially in the form attached hereto as Exhibit D and made
     a part hereof indicating thereon any exceptions thereto which may exist at
     /hat time. Failure by Tenant to execute and deliver such certificate shall
     constitute an acceptance of the Premises and acknowledgment by Tenant that
     the statements included in Exhibit D are true and correct without
     exception. Landlord and Tenant intend that any statement delivered pursuant
     to this paragraph may be relied upon by any mortgagee, beneficiary,
     purchaser or prospective purchaser of the Building or any interest therein.
     Landlord shall have the right to substitute for the attached Exhibit D a
     certificate in form required by Landlord's mortgagee or provider of
     financing.

SECURITY DEPOSIT

15.  Concurrently with execution hereof, Tenant has paid to Landlord the
     Security Deposit in the amount stated on the Basic Lease Information Sheet
     as security for the full and faithful performance of Tenant's obligations
     under this Lease. Upon expiration of the Term or earlier termination
     hereof, the Security Deposit shall be returned to Tenant, reduced by such
     amounts as may be required by Landlord to remedy defaults on the part of
     Tenant in the payment of Rent, to repair damages to the Premises caused by
     Tenant and to clean the Premises. Landlord shall hold the Security Deposit
     for the foregoing purposes in accordance with the provisions of all
     applicable law.

SUBSTITUTION

16.  At any time after execution of this Lease, Landlord may substitute for the
     Premises other premises in the Building (the "New Premises") upon not less
     than ninety (90) days prior written notice, in which event the new Premises
     shall be deemed to be the Premises for all purposes hereunder; provided,
     however, that:

     (a)  The Net Rentable Area in the Premises is less than five thousand
          (5,000) square feet;

     (b)  The New Premises shall be similar in area and in appropriateness for
          Tenant's purposes;

     (c)  Any such substitution is effected for the purpose of accommodating a
          tenant who will occupy all or a substantial portion of the Net
          Rentable Area of the floor on which the Premises are located; and

     (d)  If Tenant is occupying the Premises at the time of such substitution,
          Landlord shall pay the expense of moving Tenant, its property and
          equipment to the New Premises and shall, at its sole cost, improve the
          New Premises with improvements substantially similar to those Landlord
          has committed to provide or has provided in the Premises.

HOLDING OVER

17.  If Tenant shall retain possession of the Premises or any part thereof
     without Landlord's consent following the expiration of the Term or sooner
     termination of this Lease for any reason, then Tenant shall pay to Landlord
     for each day of such retention triple the amount of the daily rental for
     the last period prior to the date of such expiration or termination. Tenant
     shall also indemnify and hold Landlord harmless from any loss or liability
     resulting from delay by Tenant in surrendering the Premises, including,
     without limitation, any claims made by any succeeding Tenant founded on
     such delay. Alternatively, if Landlord gives notice to Tenant of Landlord's
     election thereof, such holding over shall constitute renewal of this Lease
     for a period from month to month, or for one year, whichever shall be
     specified in such notice. Acceptance of Rent by Landlord following
     expiration or termination shall not constitute a renewal of this Lease, and
     nothing contained in this paragraph shall waive Landlord's right to reentry
     or any other right. Unless Landlord exercises the option hereby given to
     it, Tenant shall be only a Tenant at sufferance, whether or not Landlord
     accepts any Rent from Tenant while Tenant is holding over without
     Landlord's written consent.

SUBORDINATION

18.  Without the necessity of any additional document being executed by Tenant
     for the purpose of effecting a subordination, this Lease shall be subject
     and subordinate at all times to: (a) all ground leases or underlying leases
     which may now exist or hereafter be executed affecting the Building or the
     land upon which the Building is situated or both, and (b) the lien of any
     mortgage or deed of trust which may now exist or hereafter be executed in
     any amount for which said Building, land, ground leases or underlying
     leases, or Landlord's interest or estate in any of said items, is specified
     as security. Notwithstanding the foregoing, Landlord shall have the right
     to subordinate or cause to be subordinated any such ground leases or
     underlying leases or any such liens to this Lease. In the event that any
     ground leases or underlying lease terminates for any reason or any mortgage
     or deed of trust is foreclosed or a conveyance in lieu of foreclosure is
     made for any reason, Tenant shall, notwithstanding any subordination,
     attorn to and become the Tenant of the successor in interest to Landlord at
     the option of such

                                       8
<PAGE>

     successor in interest. Tenant shall execute and deliver, upon demand by
     Landlord and in the form requested by Landlord, any additional documents
     evidencing the priority or subordination of this Lease with respect to any
     such ground leases or underlying leases or the lien of any such mortgage or
     deed of trust. Tenant hereby irrevocably appoints Landlord as attorney-in-
     fact for Tenant to execute, deliver and record any such documents in the
     name and on behalf of Tenant At the request of Landlord, Tenant shall
     provide to Landlord its current financial  statement or other information
     disclosing financial worth which Landlord shall use solely for purposes of
     this lease and in connection with the ownership, management and disposition
     of the property subject hereto.

RULES AND REGULATIONS

19.  Tenant shall faithfully observe and comply with the rules and regulations
     printed on or annexed to this Lease and all reasonable modifications
     thereof and additions thereto from time to time put into effect by
     Landlord. Landlord shall not be responsible to Tenant for the non-
     compliance by any other Tenant or occupant of the Building with any of the
     rules and regulations.

RE-ENTRY BY LANDLORD

20.  Landlord reserves and shall at all times have the right to re-enter the
     Premises to inspect the same, to provide any services to be provided by
     Landlord to Tenant hereunder, to show the Premises to prospective
     purchasers, mortgagees or tenants, to post notices of nonresponsibility and
     to alter, improve or repair the Premises and any portion of the Building,
     Without abatement of Rent, and may for that purpose erect, use and maintain
     scaffolding, pipes, conduits and other necessary structures in and through
     the Premises where reasonably required by the character of the work to be
     performed; provided that entrance to the Premises shall not be blocked
     thereby, and further provided that the business of Tenant shall not be
     interfered with unreasonably. Tenant waives any claim for damages for any
     injury or inconveniences to or interference with Tenant's business, any
     loss of occupancy or quiet enjoyment of the Premises, and any other loss
     occasioned thereby. Landlord shall at all times have and retain a key with
     which to unlock all of the doors in, upon and about the Premises, excluding
     Tenant's vaults and safes or special security areas (designated in
     advance), and Landlord shall have the right to use any and all means which
     Landlord may deem necessary or proper to open said doors in an emergency,
     in order to obtain entry to any portion of the Premises, and any entry to
     the Premises or portions thereof obtained by Landlord by any of said means,
     or otherwise, shall not be construed to be a forcible or unlawful entry
     into, or a detainer of, the Premises, or any eviction, actual or
     constructive, of Tenant from the premises or any portions thereof. Landlord
     shall also have the right at any time, without the same constituting an
     actual or constructive eviction and without incurring any liability to
     Tenant therefore, to change the arrangement and/or location of entrances or
     passageway, doors and doorways, and corridors, elevators, stairs, toilets
     or other public parts of the Building, and to change the name, number or
     designation by which the Building is commonly known.

DEFAULT BY TENANT

21.  (a)  Events of Default:

          The occurrence of any of the following shall constitute an event of
          default on the part of Tenant:

          (1)  Abandonment. Vacation or Abandonment of the Premises for a
               continuous period in excess of five (5) business days. Tenant
               waives any right to notice Tenant may have under Section 1951.3
               of the Civil Code of the State of California, the terms of this
               subsection (a) being deemed such notice to Tenant as required by
               said Section 1951.3;

          (2)  Nonpayment of Rent. Failure to pay any installment of Rent due
               and payable hereunder (or failure to pay any other amount
               required to be paid hereunder, all such obligations to be
               construed as the equivalent of obligations for payment of Rent)
               upon the date when said payment is due, such failure continuing
               without cure by payment of the delinquent Rent and late charge
               for a period of five (5) business days after written notice and
               demand; provided, however, that except as expressly otherwise
               provided herein, Landlord shall not be required to provide such
               notice more than twice during the Term, the third such non-
               payment constituting default for all purposes hereof without
               requirement of notice. For purposes of subparagraph 21(e), such
               failure shall constitute a default without requirement of notice.

               The due dates for payment of installments of rent provided for
               herein shall be absolute and the existence of a cure period or
               notice period shall not be deemed to extend said date for
               purposes of determining Tenant's compliance with its obligations
               hereunder.

          (3)  Other Obligations. Failure to perform any obligations, agreement
               or covenant under this Lease other than those matters specified
               in subparagraphs (1) and (2) of this subparagraph (a), such
               failure continuing for fifteen (15) business days after written
               notice of such failure (or such longer period as Landlord
               determines to be necessary to remedy such default, provided that
               Tenant shall continuously and diligently pursue such remedy at
               all times until such default is cured);

                                       9
<PAGE>

          (4)  General Assignment. A general assignment by Tenant for the
               Benefit of creditors;

          (5)  Bankruptcy. The filing of any voluntary petition in bankruptcy by
               Tenant, or the filing of an involuntary petition by Tenant's
               creditors, which involuntary petition remains undischarged for a
               period of thirty (30) days. In the event that under applicable
               law the trustee in bankruptcy or Tenant has the right, to affirm
               this Lease and continue to perform the obligations of Tenant
               hereunder, such trustee or Tenant shall, in such time period as
               may be permitted by the bankruptcy court having jurisdiction,
               cure all defaults of Tenant hereunder outstanding as of the day
               of the affirmance of this Lease and provide to Landlord such
               adequate assurances as may be necessary to ensure Landlord of the
               continued performance of Tenant's obligations under this Lease:

          (6)  Receivership. The employment of a receiver to take possession of
               substantially all of Tenant's assets or the Premises, if such
               receivership remains undissolved for a period of ten (10)
               business days after creation thereof;

          (7)  Attachment. The attachment, execution or other judicial seizure
               of all or substantially all of Tenant's assets or the Premises,
               if such attachment or other seizure remains undismissed or
               undischarged for a period of ten (10) business days after the
               levy thereof;

          (8)  Insolvency. The admission by Tenant in writing of its inability
               to pay its debts as they become due, the filing by Tenant of a
               petition seeking any reorganization, arrangement, composition,
               readjustment, liquidation, dissolution or similar relief under
               any present or future statute, law or regulation, the filing by
               Tenant of an answer admitting or failing timely to contest a
               material allegation of a petition filed against Tenant in any
               such proceeding or, if within thirty (30) days after the
               commencement of any proceeding against Tenant seeking any
               reorganization or arrangement, composition, readjustment,
               liquidation, dissolution or similar relief under any present or
               future statute, law or regulation, such proceeding shall not have
               been dismissed.

     (b)  Remedies Upon Default.

          (1)  Rent. All failures to pay any monetary obligation to be paid by
               Tenant under this Lease shall be construed as obligations for
               payment of Rent.

          (2)  Termination. In the event of the occurrence of any event of
               default, Landlord shall have the right, with or without notice or
               demand, immediately to terminate this Lease, and at any time
               thereafter recover possession of the Premises or any part thereof
               and expel and remove therefrom Tenant and any other person
               occupying the same, by any lawful means, and again repossess and
               enjoy the Premises without prejudice to any of the remedies that
               Landlord may have under this Lease, or at law or equity by reason
               of Tenant's default or of such termination.

          (3)  Continuation After Default. Even though Tenant has breached this
               Lease and/or abandoned the Premises, this Lease shall continue in
               effect for so long as Landlord does not terminate Tenant's right
               to possession under paragraph 21 (b) (2) hereof, and Landlord may
               enforce all its right and remedies under this Lease, including
               rout without limitation) the right to recover Rent as it becomes
               due; and Landlord, without terminating this Lease, may exercise
               all of the rights and remedies of a Landlord under Section 1951.4
               of the Civil Code of the State of California or any successor
               code section. Acts of maintenance, preservation or efforts to
               lease the premises or the appointment of receiver upon
               application of Landlord to protect Landlord's interests under
               this Lease shall not constitute an election to terminate Tenant's
               right to possession.

     (c)   Damages Upon Termination.

               Should Landlord terminate this Lease pursuant to the provisions
               of paragraph 21(b)(2) hereof, Landlord shall have all the rights
               and remedies of a landlord provided by Section 1951.2 of the
               Civil Code of the State of California, or successor code section.
               Upon such termination, in addition to any other rights and
               remedies to which Landlord may be entitled under applicable law,
               Landlord shall be entitled to recover from Tenant: (i) the worth
               at the time of award of the unpaid Rent and other amounts which
               had been earned at the time of termination; (ii) the worth at the
               time of award of the amount by which the unpaid Rent which would
               have been earned after termination until the time of award
               exceeds the amount of such Rent loss that the Tenant proves could
               have been reasonably avoided; (iii) the worth at the time of
               award of the amount by which the unpaid Rent for the balance of
               the Term after the time of award exceeds the amount of such Rent
               loss that the Tenant proves could be reasonably avoided; and (iv)
               any other amount necessary to compensate Landlord for all the
               detriment proximately caused by Tenant's failure to perform its
               obligations under this Lease or which, in the ordinary course of
               things, would be likely to result therefrom. The "worth at the
               time of award" of the amounts referred to in (i) and (ii) shall
               be computed with interest at the lesser of eighteen percent (18%)
               per annum or the maximum rate allowed by law. The "worth at the
               time of award" of the amount referred to in (iii) shall be
               computed by reference to competent appraisal evidence or the
               formula prescribed by and using the lowest discount rate
               permitted under applicable law.

                                      10
<PAGE>

     (d)  Computation of Rent For Purposes of Default.

          For purposes of computing unpaid Rent which would have accrued and
          become payable under this Lease pursuant to the provisions of
          paragraph 2 l(c), unpaid Rent shall consist of the sum of:

          (1)  the total Basic Rent for the balance of the Term then remaining
               (with the amount of Basic Rent to be determined by reference to
               fair rental value being the subject of proof by competent
               evidence), plus

          (2)  a computation of the excess of Gross Rent (the term "Gross Rent"
               meaning the sum of (i) rental adjustments payable pursuant to
               paragraph 29 and (ii) Basic Rent) over Basic Rent for the balance
               of the Term then remaining ("Excess Gross Rental"), the assumed
               excess Gross Rental for the calendar year of the default and each
               future calendar year in the Term to be equal to the Excess Gross
               Rental for the calendar year prior to the year in which default
               occurs compounded at a per annum rate equal to the mean average
               rate of inflation for the preceding five (5) calendar years as
               determined by the United States Department of Labor, Bureau of
               Labor Statistics Consumer Price Index (All Urban Consumers) for
               the Metropolitan Area or Region of which San Francisco,
               California is a part.

     (e)  Late Charge. In addition to its other remedies, Landlord shall have
          the right without notice or demand to add to the amount of any payment
          required to be made by Tenant hereunder, and which is not paid on or
          before the date the sum is due, an amount equal to five percent (5%)
          of the delinquency for each month or portion thereof that the
          delinquency remains outstanding to compensate Landlord for the loss of
          the use of the amount not paid and the administrative costs caused by
          the delinquency, the parties agreeing that Landlord's damage by virtue
          of such delinquencies would be difficult to compute and the amount
          stated herein represents a reasonable estimate thereof.

     (f)  Remedies Cumulative. All rights, privileges and elections or remedies
          of the parties are cumulative and not alternative to the extent
          permitted by law and except as otherwise provided herein.

DAMAGE BY FIRE, ETC.

22.  If the Premises or the Building are damaged by fire or other casualty,
     Landlord shall forthwith repair the same, provided such repairs can be made
     within one hundred eighty (180) days from the date of such damage under the
     laws and regulations of the federal, state and local governmental
     authorities having jurisdiction thereof. In such event, this Lease shall
     remain in full force and effect except that Tenant shall be entitled to a
     proportionate reduction of Rent while such repairs to be made hereunder by
     Landlord are being made. Said proportionate reduction shall be based upon
     the extent to which the making of such repairs to be made hereunder by
     Landlord shall interfere with the business carried on by Tenant in the
     Premises. Within twenty (20) days from the date of such damage, Landlord
     shall notify Tenant whether or not such repairs can be made within one
     hundred eighty (180) days from the date of such damage and Landlord's
     determination thereof shall be binding on Tenant. If such repairs cannot be
     made within one hundred eighty (180) days from the date of such damage,
     Landlord shall have the option within thirty (30) days of the date of such
     damage either to: (a) Notify Tenant of Landlord's intention to repair such
     damage and diligently prosecute such repairs, in which event this Lease
     shall continue in full force and effect and the Rent shall be reduced as
     provided herein, or Co) notify Tenant of Landlord's election to terminate
     this Lease as of a date specified in such notice, which date shall be not
     less than thirty (30) nor more than sixty (60) days after notice is given.
     In the event such notice to terminate is given by Landlord, this Lease
     shall terminate on the date specified in such notice. In case of
     termination by either event, the Rent shall be reduced by a proportionate
     amount based upon the extent to which said damage interfered with the
     business carried on by Tenant in the Premises, and Tenant shall pay such
     reduced Rent up to the date of termination. Landlord agrees to refund to
     Tenant any Rent previously paid for any period of time subsequent to such
     date of termination. The repairs to be made hereunder by Landlord shall not
     include, and Landlord shall not be required to repair, any damage by fire
     or other cause to the property of Tenant or any repairs or replacements of
     any paneling, decorations, railings, floor coverings or any alterations,
     additions, fixtures or improvements installed on the premises by or at the
     expense of Tenant. The provisions of Section 1942, subdivision 2, and
     Section 1933, subdivision 4, of the Civil Code of California are superseded
     by the foregoing.

EMINENT DOMAIN

23.  If any part of the Premises shall be taken or appropriated under the power
     of eminent domain or conveyed in lieu thereof, either party shall have the
     right to terminate this Lease at its option. If any part of the Building
     shall be taken or appropriated under power of eminent domain or conveyed in
     lieu thereof, Landlord may terminate this Lease at its option. In either of
     such events, Landlord shall receive subject to the rights of Landlord's
     first mortgage (and Tenant shall assign to Landlord upon demand from
     Landlord) any income, rent, award or any interest therein which may be paid
     in connection with the exercise of such power of eminent domain, and Tenant
     shall have no claim against Landlord for any part of the sums paid by
     virtue 6f such proceedings, whether or not attributable to the value of the
     unexpired Term. If a part of the Premises shall be so taken or appropriated
     or conveyed and neither party hereto shall elect to terminate this Lease
     and the Premises have been damaged as a consequence of such partial taking
     or appropriation or conveyance, Landlord shall restore the Premises
     continuing

                                      11
<PAGE>

     under this Lease at Landlord's cost and expense; provided, however, that
     Landlord shall not be required to repair or restore any injury or damage to
     the property of Tenant or to make any repairs or restoration of any
     alterations, additions, fixtures or improvements installed on the Premises
     by or at the expense of Tenant. Thereafter the Rent for the remainder of
     the Term shall be proportionately reduced, such reduction to be based upon
     the extent to which the partial taking or appropriation or conveyance shall
     interfere with the business carried on by Tenant in the. Premises.
     Notwithstanding anything to the contrary contained in this paragraph, if
     the temporary use or occupancy of any part of the Premises shall be taken
     or appropriated under power of eminent domain during the Term. this Lease
     shall be and remain unaffected by such taking or appropriation and Tenant
     shall continue to pay, in full, all Rent payable hereunder by Tenant during
     the Term; in the event of any such temporary appropriation or taking,
     Tenant shall be entitled to receive that portion of any award which
     represents compensation for the use of or occupancy of the Premises during
     the Term, and Landlord shall be entitled to receive that portion of any
     award which represents the cost of restoration of the Premises and the use
     and occupancy of the Premises after the end of the Term.

SALE BY LANDLORD AND TENANT'S REMEDIES

24.  In the event of a sale or conveyance by Landlord of the Building, the same
     shall operate to release Landlord from any future liability upon any of the
     covenants or conditions, express or implied, herein contained in favor of
     Tenant, and in such event Tenant agrees to look solely to the
     responsibility of the successor in interest of Landlord in and to this
     Lease. This Lease shall not be affected by any such sale and Tenant agrees
     to attorn to the purchaser or assignee. Tenant shall look solely to
     Landlord's interest in the Building for recovery of any judgment from
     Landlord. Landlord, or if Landlord is a partnership, its partners whether
     general or limited, or if Landlord is a corporation, its directors,
     officers or shareholders, shall never be personally liable for any such
     judgment.

RIGHT OF LANDLORD TO PERFORM

25.  All covenants and agreements to be performed by Tenant under any of the
     terms of this Lease shall be performed by Tenant at Tenant's sole cost and
     expense and without any abatement of Rent. If Tenant shall fail to pay any
     sum of money, other than Rent, required to be paid by it hereunder or shall
     fail to perform any other act on its part to be performed hereunder, and
     such failure shall continue for ten (10) days after notice thereof by
     Landlord, Landlord may, but shall not be obligated to do so, and without
     waiving or releasing Tenant from any obligations of the Tenant, make any
     such payment or perform any such act on the Tenant's part to be made or
     performed. All sums so paid by Landlord and all necessary incidental costs
     together with interest thereon at the rate of eighteen percent (18%) per
     annum or the maximum rate permitted by law, whichever is less per annum
     from the date of such payment by the Landlord shall be payable as
     Additional Rent to Landlord on demand, and Tenant covenants to pay such
     sums, and Landlord shall have, in addition to any other right or remedy of
     Landlord, the same right and remedies in the event of the nonpayment
     thereof by Tenant as in the case of default by Tenant in the payment of the
     Rent.

SURRENDER OF PREMISES

26.  (a)  Tenant shall, at least ninety (90) days before the last day of the
          Term, give to Landlord a written notice of intention to surrender the
          Premises on that day, but nothing contained herein shall be construed
          as an extension of the Term or as consent of Landlord to any holding
          over by Tenant.

     (b)  At the end of the term or any renewal thereof or other sooner
          termination of this Lease, Tenant shall peaceably deliver up to
          Landlord possession of the Premises, together with all improvements,
          fixtures or additions thereto by whomsoever made, in the same
          condition as received, or first installed, wear and tear and damage by
          fire, earthquake, act of God or the elements alone excepted. Tenant
          may, upon the termination of this Lease, remove all movable furniture
          and equipment belonging to Tenant, at Tenant's sole cost, title to
          which shall be in Tenant until such termination, repairing any damage
          caused by such removal. Property not so removed shall be deemed
          abandoned by the Tenant, and title to the same shall thereupon pass to
          Landlord.

     (c)  The voluntary or other surrender of this Lease by Tenant, or a mutual
          cancellation thereof, shall not work a merger and shall, at the option
          of Landlord, terminate all or any existing subleases or subtenancies
          or may, at the option of Landlord, operate as an assignment to it of
          any or all such subleases or subtenancies.

WAIVER

27.  If either Landlord or Tenant waives the performance of any term, covenant
     or condition contained in this Lease, such waiver shall not be deemed to be
     a waiver of any subsequent breach of the same or any other term, covenant
     or condition contained herein. The acceptance of Rent by Landlord shall not
     constitute a waiver of any preceding breach by Tenant of any term, covenant
     or condition of this Lease, regardless of Landlord's knowledge of such
     preceding breach at the time Landlord accepted such Rent. Failure by
     Landlord to enforce any of the terms, covenants or conditions of this Lease
     for any length of time shall not be deemed to waive or to decrease the
     right of Landlord to insist thereafter upon strict performance by Tenant.
     Waiver by Landlord of any term, covenant or condition contained in this
     Lease may only be made by a written document signed by Landlord.

                                      12
<PAGE>

NOTICES

28.  All notices and demands which may or are required to be given by either
     party to the other hereunder shall be in writing. All notices and demands
     by Landlord to Tenant shall be sent by United States certified or
     registered mail, or Federal Express or singular overnight carrier, postage
     or freight prepaid, addressed to Tenant at the Premises, or to such other
     place as Tenant may from time to time designate in a notice to Landlord.
     All notices and demands by Tenant to Landlord shall be sent by United
     States certified or registered mail, or Federal Express of similar
     overnight carrier, postage or freight prepaid, addressed to Landlord at the
     address specified in the Basic Lease Information, or to such other firm or
     to such other place as Landlord may from time to time designate in a notice
     to Tenant.

RENTAL ADJUSTMENT

29.  In addition to Basic Rent provided to be paid hereunder, Tenant shall pay
     as Rent Tenant's Proportionate Share of Basic Operating Cost in the manner
     set forth below.

     (a)  Definition: For purposes hereof, the terms used in this Paragraph 29
          shall have the following meanings:

          (1)    "Basic Operating Cost" shall mean all expenses and costs of
                 every kind and nature which Landlord shall pay or become
                 obligated to pay because of or in connection with the ownership
                 and operation of the Building and supporting facilities of the
                 Building, and such additional facilities now and in subsequent
                 years as may be determined by Landlord to be necessary to the
                 Building, including, but not limited to the following:

          (i)    Wages, salaries and related expenses and benefits of all on-
                 site and off-site employees engaged directly in the operation,
                 management, maintenance, engineering and security of the
                 Building, and the costs of an office in the Building; provided,
                 however, that Basic Operating Cost shall not include leasing
                 commissions paid to any real estate broker, salesperson or
                 agent.

          (ii)   Supplies, materials and rental of equipment used in the
                 operation, management and maintenance of the Building.

          (iii)  Utilities, including water and power, heating, lighting, air
                 conditioning and ventilating of the Building.

          (iv)   All maintenance, janitorial and service agreements for the
                 Building and the equipment therein, including, without
                 limitation, alarm services, window cleaning and elevator
                 maintenance.

          (v)    A management cost recovery determined by Landlord equal to
                 three percent (3%) of Gross Rent derived from the Building.

          (vi)   Legal expenses and the cost of audits by certified public
                 accountants; provided, however, that legal expenses chargeable
                 as Basic Operating Cost shall not include the cost of
                 negotiating leases, collecting rents, evicting tenants nor
                 shall it include costs incurred in legal proceedings with or
                 against any tenant or to enforce the provisions of any lease.

          (vii)  All insurance premiums and costs, including but not limited to,
                 the premiums and cost of fire, casualty and liability coverage
                 and rental abatement and earthquake insurance (if Landlord
                 elects to provide such coverage) applicable to the Building and
                 Landlord's personal property used in connection therewith.

          (viii) Repairs, replacements and general maintenance (excluding
                 repairs and general maintenance paid by proceeds of insurance
                 or by Tenant or other third parties, and alterations
                 attributable solely to tenants of the Building other than
                 Tenant).

          (ix)   All maintenance costs relating to public and service areas of
                 the Building, including (but without limitation) sidewalks,
                 landscaping, service areas, mechanical rooms and Building
                 exteriors.

          (x)    All taxes, service payments in lieu of taxes, annual or
                 periodic license or use fees, fees, real estate taxes,
                 impositions or charges imposed upon or levied in connection
                 with use of the Building to raise funds for public transit,
                 housing or other environmental, sociological or fiscal effects
                 of the Building or land use, assessments whether general or
                 special, ordinary and extraordinary, unforeseen as well as
                 foreseen, of any kind which are assessed, levied, charged,
                 confirmed or imposed by any public authority upon the Building,
                 the land upon which it is located, Building operations or Rent
                 payable under this Lease (or any portion or component thereof),
                 excepting only inheritance or estate taxes imposed upon or
                 assessed against the interest of any person in the Building or
                 any part thereof or interest therein, and taxes computed upon
                 the basis of the net income of the owners of the Building or
                 any part thereof or interest therein.

                                      13
<PAGE>

          (xi) Amortization (together with reasonable financing charges) of
               capital improvement made to the Building subsequent to the Term
               Commencement Date which will improve the operating efficiency of
               the building or which may be required to comply with laws,
               ordinances, rules or regulations promulgated, adopted or enforced
               after completion of the initial construction of the Building and
               improvements of the Premises pursuant to the Office Lease
               Improvement Agreement.

          Notwithstanding anything to the contrary herein contained, Basic
          Operating Cost shall not include (aa) the initial construction cost of
          the Building; (bb) depreciation on the initial construction of the
          Building; (cc) the cost of providing Tenant Improvements to Tenant or
          any other tenant; (dd) debt service (including, but without
          limitation, interest, principal and any impound payment) required to
          be made on any mortgage or deed of trust recorded with respect to the
          Building and/or the real property on which the Building is located
          other than debt service and financing charges imposed pursuant to
          paragraph 29(a)(1)(xi) above; and (ee) the cost of special services,
          goods or materials provided to any tenant. In the event that the
          Building is not fully occupied during any fiscal year of the Term as
          determined by Landlord, an adjustment shall be made in computing the
          Basic Operating Cost for such year so that Basic Operating Cost shall
          be computed as though the Building had been one hundred percent (100%)
          occupied; provided, however, that in no event shall Landlord be
          entitled to collect in excess of one hundred percent (100%) of the
          total Basic Operating Cost from all of the tenants in the Building
          including Tenant. All costs and expenses shall be determined in
          accordance with generally accepted accounting principles which shall
          be consistently applied (with accruals appropriate to Landlord's
          business). Basic Operating Cost shall not include specific costs
          incurred for the account of, separately billed to and paid by specific
          tenants.

          (2)  "Estimated Basic Operating Cost" for any particular year shall
               mean Landlord's estimate of the Basic Operating Cost for such
               fiscal year made prior to commencement of such fiscal year as
               hereinafter provided. Landlord shall have the right from time to
               time to revise its fiscal year and interim accounting periods so
               long as the periods as so revised are reconciled with prior
               periods in accordance with generally accepted accounting
               principles applied in a consistent manner.

          (3)  "Basic Operating Cost Adjustment" shall mean the difference
               between Basic Operating Cost and Estimated Basic Operating Cost
               for any fiscal year determined as hereinafter provided.

     (b)  Payment of Estimated Basic Operating Cost.

          During the last month of each fiscal year during the Term, or as soon
          thereafter as practicable, Landlord shall give Tenant written notice
          of the Estimated Basic Operating Cost for the ensuing fiscal year. The
          Estimated Basic Operating Cost for the fiscal year in which the
          Scheduled Term Commencement Date falls is set forth in the Basic Lease
          Information sheet. Tenant shall pay Tenant's Proportionate Share of
          the Estimated Basic Operating Costs with installments of Basic Rent
          required to be paid pursuant to paragraph 3 above for the fiscal year
          to which the estimate applies in monthly installments on the first day
          of each calendar month during such year, in advance. Such payment
          shall be construed to be Rent for all purposes hereof. If at any time
          during the course of a fiscal year, Landlord determines that Basic
          Operating Cost will apparently vary from the then Estimated Basic
          Operating Cost by more than five percent (5%), Landlord may, by
          written notice to Tenant, revise the Estimated Basic Operating Cost
          for the balance of such fiscal year and Tenant shall pay Tenant's
          Proportionate Share of the Estimated Basic Operating Cost as so
          revised for the balance of the then current fiscal year on the first
          day of each calendar month thereafter, such revised installment
          amounts to be Rent for all purposes hereof.

     (c)  Computation of Basic Operating Cost Adjustment.

          Within one hundred twenty (120) days after the end of each fiscal year
          as determined by Landlord or as soon thereafter as practicable,
          Landlord shall deliver to Tenant a statement of Basic Operating Cost
          for the fiscal year just ended, accompanied by a computation of Basic
          Operating Cost Adjustment. If such statement shows that Tenant's
          payment based upon Estimated Basic Operating Cost is less than
          Tenant's Proportionate Share of Basic Operating Cost, then Tenant
          shall pay the difference within twenty (20) days after receipt of such
          statement, such payment to constitute additional Rent hereunder. If
          such statement shows that Tenant's payments of Estimated Basic
          Operating Cost exceed Tenant's Proportionate Share of Basic Operating
          Costs, then (provided that Tenant is not in default under this Lease),
          Tenant shall receive a credit for the amount of such payment against
          Tenant's obligation for payment of Tenant's Proportionate Share of
          Estimated Basic Operating Cost next becoming due hereunder. If this
          Lease has been terminated or the Term hereof has expired prior to the
          date of such statement, then the Basic Operating Cost Adjustment shall
          be paid by the appropriate party within twenty (20) days after the
          date of delivery of the statement.

     (d)  Net Lease.

          This shall be a net lease and Base Rent shall be paid to Landlord
          absolutely net of all costs and expenses. The provisions for payment
          of Basic Operating Cost by means of periodic payments of Tenant's
          Proportionate Share of Estimated Basic Operating Cost and the Basic
          Operating Cost Adjustment are intended to pass on to Tenant and
          reimburse Landlord for all cost and expenses of the nature described
          in paragraph 29(a)(1) above incurred in connection with ownership and
          operation of the Building and such

                                      14
<PAGE>

          additional facilities now and in subsequent years as may be determined
          by Landlord to be necessary to the Building.

     (e)  Tenant Audit.

          Tenant shall have the right, at Tenant's expense and upon not less
          than forty-eight (48) hours prior written notice to Landlord to review
          at reasonable times Landlord's books and records for any fiscal year a
          portion of which falls within the Term for purposes of verifying
          Landlord's calculations of Basic Operating Cost and Basic Operating
          Cost Adjustments. In the event that Tenant shall dispute the amount
          set forth in any statement provided by Landlord under paragraph 29(c)
          above, Tenant shall have the right not later than twenty (20) days
          following the receipt of such statement, and upon condition that
          Tenant shall first deposit with Landlord the full amount in dispute,
          to cause Landlord's books and records with respect to such fiscal year
          to be audited by certified public accountants selected by Tenant
          subject to Landlord's reasonable right of approval. The Basic
          Operating Cost Adjustment shall be appropriately adjusted on the basis
          of such audit. If such audit discloses a liability for a refund or
          credit by Landlord to Tenant in excess of ten percent (10%) of
          Tenant's Proportionate Share of the Basic Operating Cost Adjustment
          previously reported, the cost of such audit shall be borne by
          Landlord. Otherwise the cost of such audit shall be paid by Tenant. If
          Tenant shall not request an audit in accordance with the provisions of
          this paragraph 29(e) within twenty (20) days of receipt of Landlord's
          statement provided pursuant to paragraph 29(d), such statement shall
          be final and binding for all purposes hereof.

TAXES PAYABLE BY TENANT

30.  (a)  Tenant shall pay before delinquency any and all taxes levied or
          assessed and which become payable by Landlord (or Tenant) during the
          Term of this Lease, whether or not now customary or within the
          contemplation of the parties hereto, which are based upon, measured by
          or otherwise calculated with respect to: (a) the value of Tenant's
          equipment, furniture, fixtures or other personal property located in
          the Premises; (b) the value of any leasehold improvements,
          alterations, or additions made in or to the Premises, regardless of
          whether title to such improvements, alterations or additions shall be
          in Tenant or Landlord; or (c) this transaction or any document to
          which Tenant is a party creating or transferring an interest or an
          estate in the Premises.

     (b)  In the event that it shall not be lawful for Tenant so to reimburse
          Landlord, the Rent shall be revised to net Landlord the same net rent
          after imposition of any such tax upon Landlord as would have been
          payable to Landlord prior to the imposition of any such tax. All taxes
          payable to Tenant under this paragraph 30 shall be additional rental.

SUCCESSORS AND ASSIGNS

31.  Subject to the provisions of paragraph 10 hereof, the terms, covenants and
     conditions contained herein shall be binding upon and inure to the benefit
     of the heirs, successors, executors, administrators and assigns of the
     parties hereto.

ATTORNEYS' FEES

32.  In the event that any action or proceeding is brought to enforce any term,
     covenant or condition of this Lease on the part of Landlord or Tenant, the
     prevailing party in such litigation shall be entitled to reasonable
     attorneys' fees to be fixed by the court in such action or proceeding.

LIGHT AND AIR

33.  No diminution of light, air or view by any structure which may hereafter be
     erected (whether or not by Landlord) shall entitle Tenant to any reduction
     of Rent, result in any liability of Landlord to Tenant, or in any other way
     affect this Lease or Tenant's obligations hereunder.

PUBLIC TRANSPORTATION INFORMATION

34.  Tenant shall establish and maintain during the Term hereof a program to
     encourage maximum use of public transportation by personnel of Tenant
     employed on the Premises, including without limitation the distribution to
     such employees of written materials explaining the convenience and
     availability of public transportation facilities adjacent or proximate to
     the Building, staggering working hours of employees, and encouraging use of
     such facilities, all at Tenant's sole reasonable cost and expense.

                                      15
<PAGE>

MISCELLANEOUS

35.  (a)  The term "Premises" shall be deemed to include (except where such
          meaning would be clearly repugnant to the context) the office space
          demised and improvements now or at any time hereinafter comprising or
          built in the space hereby demised

     (b)  The paragraph headings hereto are for convenience of reference and
          shall in no way define, increase, limit or describe the scope or
          intent of any provision of this Lease.

     (c)  The term "Landlord" in these presents shall include the Landlord, its
          successors and assigns. In any case where this lease is signed by more
          than one person, the obligations hereunder shall be joint and several.

     (d)  The term "Tenant" or any pronoun used in place thereof shall indicate
          and include the masculine or feminine, the singular or plural number,
          individuals, firms or corporations, and their and each of their
          respective successors, executors, administrators and permitted
          assigns, according to the context hereof.

     (e)  Time is of the essence of this Lease and all of its provisions.

     (f)  This Lease shall in all respects be governed by the laws of the State
          of California.

     (g)  This Lease, together with its exhibits, contains all the agreements of
          the parties hereto and supersedes any previous negotiations.

     (h)  There have been no representations made by the Landlord or
          understandings made between the parties other than those set forth in
          this Lease and its exhibits.

     (i)  This Lease may not be modified except by a written instrument by the
          parties hereto.

     (j)  If for any reason whatsoever any of the provisions hereof shall be
          unenforceable or ineffective, all of the other provisions shall be and
          remain in full force and effect.

     (k)  See Addenda #1 - #3 attached hereto and made a part hereof. If the
          term of the printed form and the terms of the Addendas are in
          conflict, the terms of the Addendas will prevail.

LEASE EFFECTIVE DATE

36.  Submission of this instrument for examination or signature by Tenant does
     not constitute a reservation or option for lease, and it is not effective
     as a lease or otherwise until execution and delivery by both Landlord and
     Tenant.

     IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and
     year first above written.

                  "LANDLORD"

                  SPIEKER PROPERTIES, L.P.
                  a California limited partnership

                  By: Spieker Properties, Inc.
                      a Maryland corporation

                  By:  /s/ Peter Schnugg
                     -------------------------------
                       Peter Schnugg

                  Its: Senior Vice President
                      ------------------------------

                  Date:  4-7-97
                       -----------------------------

                  "TENANT"

                  CROSSROUTE SOFTWARE, INCORPORATED
                  a California corporation

                  By:  /s/ Kenneth Ross
                     -------------------------------
                       Kenneth Ross

                  Its: President
                       -----------------------------
                  Date:
                       -----------------------------

                                      16
<PAGE>

     LEASE DATE:    March 28, 1997

     LANDLORD:      SPIEKER PROPERTIES,
                    L.P. a California limited partnership

     TENANT:        CROSSROUTE SOFTWARE, INCORPORATED
                    a California corporation

     ADDENDUM #1 RENT
     ----------------

     Rent for the Premises shall be as follows:

          Months 1 - 12
          -------------
          6/1/97 - 5/31/98

          Base Rent                   $13,243.00
          Basic Operating Costs
          (1997 Est.)                   3,836.00
                                      ----------
                                      $17,079.00 per month

          Months 13 - 24
          --------------
          6/1/98 - 5/31/99

          Base Rent                   $13,768.00
          Basic Operating Costs
          (1997 Est.)                   3,836.00
                                      ----------
                                      $17,604.00 per month

          Months 25 - 36
          --------------
          6/1/99 - 5/31/00

          Base Rent                   $14,294.00
          Basic Operating Costs
          (1997 Est.)                   3,836.00
                                      ----------
                                      $18,130.00 per month

          Months 37 - 48
          --------------
          6/1/00 - 5/31/01

          Base Rent                   $14,819.00
          Basic Operating Costs
          (1997 Est.)                   3,836.00
                                      ----------
                                      $18,655.00 per month

          Months 49 - 60
          --------------
          6/1/01 - 5/31/02

          Base Rent                   $15,345.00
          Basic Operating Costs
          (1997 Est.)                   3,836.00
                                      ----------
                                      $19,181.00 per month

     Rental rate includes a $.73 (1997 estimate) per square foot per month
     allowance for real estate taxes, assessments, insurance, normal routine
     maintenance, management, five (5) days per week janitorial service, and
     normal operating hours utilities. Should the actual expenses be more or
     less than this allowance, the difference shall be credited to Tenant, or
     owed by Tenant, as the case may be.

                                      17
<PAGE>

     ADDENDUM #2 TENANT IMPROVEMENTS
     -------------------------------

     Landlord, at its sole cost, shall provide the following tenant
     improvements:

          -  Shampoo carpets throughout office area
          -  Touch-up paint as necessary throughout office area

     ADDENDUM #3 LETTER OF CREDIT
     ----------------------------

     Upon execution hereof., Tenant shall provide Landlord with a Letter of
     Credit from a United States bank acceptable to Landlord, and naming
     Landlord as beneficiary in an amount equal to $51,236.00 (fifty one
     thousand two hundred thirty six dollars) and in the form and substance
     satisfactory to Landlord. This Letter of Credit shall be held throughout
     the entire length of the lease term. Said Letter of Credit shall serve as
     security for the faithful performance and observance by Tenant of the
     terms, provisions and conditions of this Lease, including without
     limitation, the surrender of possession of the Premises to Landlord as
     herein provided. The Letter of Credit shall be payable at sight when
     accompanied by Landlord's signed statement that Tenant has failed to pay
     any rent or other amount due under the Lease and evidence of notice from
     Landlord to Tenant per the terms of this Lease.

     "Landlord"
     Spieker Properties, L. P.
     a California limited partnership

     By:  Spieker Properties, Inc.
          ------------------------
          a Maryland corporation

     By:  /s/ Peter Schnugg
          ------------------------
          Peter H. Schnugg

     Its: Senior Vice President
          ------------------------

     Date:  4-7-97
          ------------------------

     "TENANT"
     Crossroute Software, Incorporated
     a California corporation

     By:  /s/ Kenneth Ross
          ------------------------
          Kenneth Ross

     Its: President
          ------------------------

     Date:   3/31/97
          ------------------------

                                      18
<PAGE>

                             Rules and Regulations

     1.   No sign, placard, picture, advertisement, name or notice shall be
installed or displayed on any part of the outside or inside of the Building
without the prior written consent of Landlord. Landlord shall have the right to
remove, at Tenant's expense and without notice, any sign installed or displayed
in violation of this rule. All approved signs or lettering on doors, windows and
walls shall be printed, painted, affixed or inscribed at the expense of Tenant
by a person chosen by Landlord, using materials or Landlord's choice and in a
style and format approved by Landlord.

     2.   Tenant must use Landlord's blinds in all exterior and atrium window
offices. No awning shall be permitted on any part of the Premises. Tenant shall
not place anything against or near glass partitions or doors or windows which
may appear unsightly from outside the Premises.

     3.  Tenant shall not obstruct sidewalks, halls, passages, exits, entrances,
elevators, escalators or stairways of the Building. The halls, passages, exits,
entrances, shopping malls, elevators, escalators and stairways are not for the
general public, and Landlord shall in all cases retain the right to control and
prevent access thereto of all persons whose presence in the judgement of
Landlord would be prejudicial to the safety, character, reputation and interests
of the Building and its tenants; provided that nothing herein contained shall be
construed to prevent such access to persons with whom any tenant normally deals
in the ordinary course of its business, unless such persons are engaged in
illegal activities. No tenant and no employee or invitee of any tenant shall go
upon the roof of the Building.

     4.   The directory of the Building will be provided exclusively for the
display of the name and location of Tenants only, and Landlord reserves the
right to execute any other names therefrom.

     5.   All cleaning and janitorial services for the Building and the Premises
shall be provided exclusively through Landlord, and except with the written
consent of Landlord, no person or persons other than those approved by Landlord
shall be employed by Tenant or permitted to enter the Building for the purpose
of cleaning the same. Tenant shall not cause any unnecessary labor by
carelessness or indifference to the good order and cleanliness of the Premises.
Landlord shall not in any way be responsible to any Tenant for any loss of
property on the Premises, however occurring, or for any damage to any Tenant's
property by the janitor or any other employee or any other person.

     6.  Landlord will furnish Tenant, free of charge, with two keys to each
door lock in the Premises. Landlord may make a reasonable charge for any
additional keys. Tenant shall not make or have made additional keys, and Tenant
shall not alter any lock or install a new additional lock or bolt on any door of
its Premises. Tenant, upon the termination of its tenancy, shall deliver to
Landlord the keys of all doors which have been furnished to Tenant, and in the
event of loss of any keys so furnished, shall pay Landlord therefor.

     7.   If Tenant requires telegraphic, telephonic, burglar alarm or similar
services, it shall first obtain, and comply with, Landlord's instructions in
their installation.

     8.   Any freight elevator shall be available for use by all tenants in the
Building, subject to such reasonable scheduling as Landlord in its discretion
shall deem appropriate, No equipment, materials, furniture, packages, supplies,
merchandise or other property will be received in the Building or carried in the
elevators except between such hours and in such elevators as may be designated
by Landlord.

     9.   Tenant moves and deliveries of large quantities of furniture,
equipment or supplies must be accomplished after 5:30 pm on weekdays or anytime
on weekends and must be coordinated with Landlord.

     10.  Tenant shall not place a load upon any floor of the Premises which
exceeds the load per square foot which such floor was designed to carry and
which is allowed by law. Landlord shall have the right to prescribe the weight,
size and position of all equipment, materials, furniture or other property
brought into the Building. Heavy objects, if such objects are considered
necessary by Tenant, as determined by Landlord, shall stand on such platforms as
determined by Landlord to be necessary to properly distribute the weight.
Business machines and mechanical equipment belonging to Tenant, which cause
noise or vibration that may be transmitted to the structure of the Building or
to any space therein to such a degree as to be objectionable to Landlord or to
any tenants in the Building, shall be placed and maintained by Tenant, at
Tenant's expense, on vibration eliminators or other devices sufficient to
eliminate noise or vibration. The persons employed to move such equipment in or
out of the Building must be acceptable to Landlord. Landlord will not be
responsible for loss of, or damage to, any such equipment or other property from
any cause, and all damage done to the Building by maintaining or moving such
equipment or other property shall be repaired at the expense of Tenant.

     11.  Tenant shall not use or keep in the Premises any kerosene, gasoline
or inflammable or combustible fluid or materials other than those limited
quantities necessary for the operation or maintenance of office equipment.
Tenant shall not use or permit to be used in the Premises any foul or noxious
gas or substance, or permit or allow the Premises to be occupied or used in a
manner offensive or objectionable to Landlord or other occupants of the Building
by reason of noise, odors or vibrations, nor shall Tenant bring into or keep in
or about the Premises any birds or animals.

     12.  Tenant shall not use any method of heating or air-conditioning other
than that supplied by Landlord.

                                  Exhibit "A"
                                   Page -1-
<PAGE>

     13.  Tenant shall not waste electricity, water or air-conditioning and
agrees to cooperate fully with Landlord to assure the most effective operation
of the Building's heating and air-conditioning and to comply with any
governmental energy-saving rules, laws and regulations of which Tenant has
actual notice, and shall refrain from attempting to adjust controls other than
room thermostats for Tenant's use. Tenant shall keep corridor doors closed, and
shall close window coverings at the end of each business day. Heat and air-
conditioning shall be provided during ordinary business hours of generally
recognized business days but not less than the hours of 8:00 am to 6:00 pm on
Monday through Friday (excluding in any event Saturdays, Sundays and legal
holidays it being understood that legal holidays shall mean and refer to those
holidays of which Landlord provides Tenant with reasonable prior written notice
which shall in any event include those holidays on which the New York Stock
Exchange is closed).

     14   Landlord reserves the right, exercisable without notice and without
liability to Tenant, to change the name and street address of the Building.

     15.  Landlord reserves the right to exclude from the building between the
hours of 6:00 pm and 7:00 am the following day, or such other hours as may be
established from time to time by Landlord, and on Saturdays, Sundays and legal
holidays, any person unless that person is known to the person or employee in
charge of the Building and has a pass or is properly identified. Tenant shall be
responsible for all persons for whom it requests passes and shall be liable to
Landlord for all acts of all such persons. Landlord shall not be liable for
damages for any error with regard to the admission to or exclusion from the
Building of any person. Landlord reserves the right to prevent access to the
Building in case of invasion, mob, riot, public excitement or other commotion by
closing the doors or by other appropriate action.

     16.  Tenant shall close and lock the doors of its Premises and entirely
shut off all water faucets or other water apparatus, and electricity, gas or air
outlets before Tenant and employees leave the Premises. Tenant shall be
responsible for any damage or injuries sustained by other tenants or occupants
of the Building or by Landlord for noncompliance with this rule.

     17.  Tenant shall not obtain for use on the Premises ice, drinking water,
food beverage, towel or other similar services or accept barbering or
bootblacking services upon the Premises, except at such hours and under such
regulations as may be fixed by Landlord.

     18.  The toilet rooms, toilets, urinals, wash bowls and other apparatus
shall not be used for any purpose other than that for which they were
constructed and no foreign substance of any kind whatsoever shall be thrown
therein. The expense of any breakage, stoppage or damage resulting from the
violation of this rule shall be borne by the tenant who, or whose employees or
invitees, shall have caused it.

     19.  Tenant shall not sell, or permit the sale at retail, of newspapers,
magazines, periodicals, theater tickets or any other goods or merchandise to the
general public in or on the Premises. Tenant shall not make any room-to-room
solicitation of business from other tenants in the Building. Tenant shall not
use the Premises for any business or activity other than that specifically
provided for in Tenant's Lease.

     20.  Tenant shall not install any radio or television antenna, loudspeaker
or other device on the roof or exterior walls of the Building. Tenant shall, not
interfere with radio or television broadcasting or reception from or in the
Building or elsewhere.

     21.  Tenant shall not mark, drive nails, screw or drill into the
partitions, woodwork or plaster or in any way deface the Premises or any part
thereof, except to install normal wall hangings. Landlord reserves the right to
direct electricians as to where and how telephone and telegraph wires are to be
introduced to the Premises, Tenant shall not cut or bore holes for wires. Tenant
shall not affix any floor covering to the floor of the Premises in any manner
except as approved by Landlord. Tenant shall repair any damage resulting from
noncompliance with this rule.

     22.  Tenant shall not install, maintain or operate upon the Premises
any vending machine without the written consent of Landlord.

     23.  Canvassing, soliciting and distribution of handbills or any other
written material, and peddling in the Building are prohibited, and each tenant
shall cooperate to prevent same.

     24.   Landlord reserves the right to exclude or expel from the Building any
person who, in Landlord's judgement, is intoxicated or under the influence of
liquor or drugs or who is in violation of any of the Rules and Regulations of
the Building.

     25.  Tenant shall store all its trash and garbage within its Premises.
Tenant shall not place in any trash box or receptacle any material which cannot
be disposed of in the ordinary and customary manner of trash and garbage
disposal. All garbage and refuse disposal shall be made in accordance with
directions issued from time to time by Landlord.

     26.  The Premises shall not be used for the storage of merchandise held
for sale to the general public, or for lodging or for manufacturing or any kind,
nor shall the Premises be used for any improper, immoral or objectionable
purpose. No cooking shall be done or permitted by any tenant on the Premises,
except that used by Tenant of Underwriters' Laboratory-approved equipment for
brewing coffee, tea, hot chocolate and similar beverages shall be permitted, and
the use of a microwave shall be permitted, providing that such equipment and use
is in accordance with all applicable federal, state, county and city laws,
codes, ordinance, rules and regulations.

     27.  Tenant shall not use in any space or in the public halls of the
Building any hand trucks except those equipped with rubber tires and side guards
or such other material-handling equipment as Landlord may approve. Tenant shall
not bring any other vehicles of any kind into the Building.

     28.  Without the written consent of Landlord, Tenant shall not use the
name of the Building in connection with or in promoting or advertising the
business of Tenant except as Tenant's address.

                                  Exhibit "A"
                                   Page -2-
<PAGE>

     29.  Tenant shall comply with all safety, fire protection and
evacuation procedures and regulations established by Landlord or any
governmental agency.

     30.  Tenant assumes any and all responsibility for protecting its
Premises from theft, robbery and pilferage, which includes keeping doors locked
and other means of entry to the Premises closed.

     31   The requirements of Tenants will be attended to only upon appropriate
application to the off ice of the Building by an authorized individual.
Employees of Landlord shall not perform any work or do anything outside of their
regular duties unless under special instructions from Landlord. and no employee
of Landlord will admit any person (Tenant or otherwise) to any office without
specific instructions from Landlord.

     32.  Landlord may waive any one or more of these Rules and Regulations for
the benefit of Tenant or any other tenant, but no such waiver by Landlord shall
be construed as a waiver of such Rules and Regulations in favor of Tenant or any
other Tenant, or prevent Landlord from thereafter enforcing any such Rules and
Regulations against any or all of the tenants of the Building.

     33.  These Rules and Regulations are in addition to, and shall not be
construed to in any way modify or amend, in whole or in part, the terms,
covenants, agreements and conditions of any lease of premises in the Building.

     34.  Landlord reserves the right to make such other and reasonable Rules
and Regulation as, in its judgement, may from time to time be needed for safety
and security, for care and cleanliness of the Building and for the preservation
of good order therein. Tenant agrees to abide by all such Rules and Regulations
hereinabove stated and any additional rules and regulations which are adopted.

     35.  Tenant shall be responsible for the observance of all the
foregoing rules by Tenant's employees, agents, clients, customers, invitees and
guests.

     36.  Tenant shall not occupy or permit any portion of Demised Premises to
be occupied as an office that is not generally consistent with the character and
nature of all other tenancies in the Building, or is (a) for an employment
agency, a public stenographer or typist, a labor union office, a physician's or
dentist's office, a dance or music studio, a school, a beauty salon or barber
shop, the business of photographic, multilith or multigraph reproductions or
offset printing (not precluding using any part of Demised Premises for
photographic, multilith or multigraph reproductions solely in connection with
Tenant's own business and/or activities), a restaurant or bar, an establishment
for the sale of confectionery or soda or beverages or sandwiches or ice cream or
baked goods, an establishment for the preparation of dispensing or consumption
of food or beverages (of any kind) in any manner whatsoever, or as a news or
cigar stand, or as a radio or television or recording studio, theater or
exhibition-hall, for manufacturing for the storage of merchandise or for the
sale of merchandise, goods or property of any kind at auction, or for lodging,
sleeping or for any immoral purpose, or for any business which would tend to
generate a large amount of foot traffic in or about the Building or the land
upon which it is located, or any of the areas used in the operation of the
Building, including but not limited to any use (i) for a banking, trust company,
depository, guarantee, or safe deposit business, (ii) as a savings bank, or as a
savings and loan association, or as a loan company, (iii) for the sale of
travelers checks, money orders, drafts, foreign exchange or letters of credit or
for the receipt of money for transmission, (iv) as a stock broker's or dealer's
office or for the underwriting of securities, (v) a government office or foreign
embassy or consulate, or (vi) tourist or travel bureau, or (b) a use which
conflicts with any so-called "exclusive" then in favor of, or is for any use the
same as that stated in any percentage lease to another tenant of the Building or
the Site, or (c) a use which would be prohibited by any other portion of this
Lease (including, but not limited to any Rules and Regulations then in effect)
or in violation of law. Tenant shall not engage or pay any employees on Demised
Premises, except those actually working for Tenant on Demised Premises nor shall
Tenant advertise for laborers giving an address at Demised Premises.

     37.  If Demised Premise is or becomes infested with vermin as a result of
the use or any misuse or neglect of Demised Premises by Tenant, its agents,
servants, employees, contractors, visitors or licensees, Tenant shall forthwith
at Tenant's expense cause the same to be exterminated from time to time to the
satisfaction of Landlord and shall employ such licensed exterminators as shall
be approved in writing in advance by Landlord.

     38.  Tenant, Tenant's agents, servants, employees, contractors, licensees
or visitors shall not park any vehicles in any driveways, service entrances, or
areas posted "No Parking".

     39.  Tenant shall install and maintain, at Tenant's sole cost and expense,
an adequate visibly marked (at all times properly operational) fire extinguisher
next to any duplicating or photocopying machine or similar heat producing
equipment, which may or may not contain combustible material, in Demised
Premises.

     40.  Smoking will not be permitted in the Building.

     41.  Landlord reserves the right to assess a $100 penalty to the Tenant
whose employee(s) after repeated warnings continue to abuse parking privileges.
Landlord also has the right to tow any vehicle(s) in violation at the vehicle
owner's expense.

     42.  Tenant shall not use lobbies or other common areas of the Building
for promotion, such as parties, displays or advertisements.

     43.  Tenants may reserve the Tenant Conference Room through the Building
Manager on a first come, first served basis. Tenants shall comply with all
check-in and cleanup of the conference room or Landlord reserves the right to
assess a reasonable fee for maid service.

                                  Exhibit "A"
                                   Page -3-
<PAGE>

                        Outline of Premises, Suite 180
                            Approximately 5,255 rsf

                                     (Map)

                                  Exhibit "B"
                                   Page -1-
<PAGE>

                          Form of Tenant Certificate

CrossRoute Software: Incorporated
---------------------------------

555 Twin Dolphin Drive, Suite 190
---------------------------------

Redwood City, California 94065
------------------------------

RE:  Premises located at 555 Twin Dolphin Drive, Suite 180
     Redwood City, California 94065

Gentlemen:

The undersigned, as Tenant under that certain lease (the "Lease") dated March
                                                                        -----
28, 1997,
---------

made with Spieker Properties, L.P. as
          ------------------------

Landlord (the "Landlord"), does hereby certify:

1. That the copy of the Lease attached hereto as Exhibit A is a true and
   complete copy of the Lease, and that there are no amendments, modifications
   or extensions of or to the Lease and the Lease is now in full force and
   effect.

2. That its leased premises at the above location have been completed in
   accordance with the terms of the Lease, that it has accepted possession of
   said premises, and that it now occupies the same.

3. That it began paying rent on ________________, 19__, and that, save only as
   may be required by the terms of the Lease, no rental has been paid in
   advance, nor has the undersigned deposited any sums with the Landlord as
   security.

4. That there exists no defenses or offsets to enforcement of the Lease by the
   Landlord and, so far as is known to the undersigned, the Landlord is not, as
   of the date hereof, in default in the performance of the Lease, nor has the
   Landlord committed any breach thereof, nor has any event occurred which, with
   the passage of time or the giving of notice, or both, would constitute a
   default or breach by the Landlord.

   The undersigned acknowledges that you are relying on the above representation
   of the undersigned in (advancing funds to purchase the existing first
   mortgage loan covering the building in which the leased premises are located)
   (in purchasing the building in which the leased premises are located) and
   does hereby warrant and affirm to and for your benefit, and that of your
   successors and assigns, that each of the foregoing representations is true,
   correct and complete as of the date hereof.

Dated:_________________________

By_____________________________
     Kenneth Ross

     Its_______________________

                                  Exhibit "D"
                                   Page -1-
<PAGE>

                              LEASE AMENDMENT #1
                              ------------------

ORIGINAL LEASE DATE           March 28, 1997

LEASE AMENDMENT DATE:         October 6, 1997

LANDLORD:                     Spieker Properties, L.P.
                              a California Limited Partnership

TENANT:                       CrossRoute Software, Incorporated
                              a California Corporation

Landlord and Tenant, by executing this Lease Amendment as provided do hereby
amend the Original Lease referred to above as follows:

1.   TERM
     ----

     The term of the Lease shall be extended so that the Scheduled Term
     Expiration Date, as defined per the Basic Lease Information within the
     Original Lease Agreement, shall be October 31, 2002.

2.   PREMISES
     --------

     The Premises of the Lease as defined per the Basic Lease Information shall
     be amended such that effective November 1, 1997, approximately 17,198
     square feet of rentable space on the sixth floor of 555 Twin Dolphin Drive,
     known as Suite #600, shall be incorporated into the Original Lease
     Agreement, and approximately 5,255 square feet of rentable space on the
     first floor of 555 Twin Dolphin Drive, known as Suite #180, shall be
     reduced from the Original Lease Agreement. Total square footage shall
     increase from 5,255 to 17,198 rentable square feet.

3.   RENTAL RATE
     -----------

     Months 1 - 12
     (11/01/97 - 10/31/98)    Base Rent           $47,982.42
                              Op. Exp. (est '97)  $12.210.58
                                                  ----------
                              Total Rent          $60,193.00  per month

     Months 13 - 24
     11/01/98 - 10/31/99      Base Rent           $49,702.22
                              Op. Exp. (est '97)  $12,210.58
                                                  ----------
                              Total Rent          $61,912.80  per month

     Months 25 - 36
     11/01/99 - 10/31/2000    Base Rent           $51,422.02
                              Op. Exp. (est '97)  $12.210.58
                                                  ----------
                              Total Rent          $63,632.60  per month

     Months 37 - 48
     11/01/2000 - 10/31/2001  Base Rent           $53,141.82
                              Op. Exp. (est '97)  $12.210.58
                                                  ----------
                              Total Rent          $65,352.40  per month

     Months 49 - 60
     11/01/2001 - 10/31/2002  Base Rent           $54,861.62
                              Op. Exp. (est '97)  $12,210.58
                                                  ----------
                              Total Rent          $67,072.20  per month

4.   PROPORTIONATE SHARE
     -------------------

     Tenant's Share, as defined per the Basic Lease Information within the
     Original Lease Agreement shall increase effective November 1, 1997 from
     2.65% to 8.66%.
<PAGE>

CrossRoute Software, Incorporation
Lease Amendment #1
Page Two

5.   SECURITY DEPOSIT
     ----------------

     The of the Security Deposit, as defined in the Basic Lease Information of
     the Lease Agreement, shall increase from $17,079.00 to $60,193.00.

6.   LETTER OF CREDIT
     ----------------

     The amount of the Letter of Credit, as defined in Addendum #3 of the
     Original Lease Agreement, shall increase from $51,236.00 to $180,579.00.

7.   TENANT IMPROVEMENTS
     -------------------

     Landlord, at its sole cost, shall provide the following tenant
     improvements:

     .    New building standard carpet throughout entire office
     .    New paint throughout entire office

8.   All other terms and conditions of the original Lease Agreement shall apply
     to this Lease Amendment #1. Agreed to this 7th day of October, 1997.

     LANDLORD:

     Spieker Properties, L. P.
     a California Limited Partnership

     By:  Spieker Properties, Inc.
          -----------------------------------
          a Maryland corporation

     Its: General Partner

     By: /s/  Peter H. Schnugg
         -----------------------------------
          Peter H. Schnugg

     Its: Senior Vice President
          ----------------------------------

     Date:  10-16-97
           ---------------------------------

     TENANT:

     Crossroute Software, Incorporated
     a California corporation

     By: /s/ Kenneth Ross
        ------------------------------------
         Kenneth Ross

     Its:  President
          ----------------------------------

     Date:  10/7/97
           ---------------------------------
<PAGE>

                              EXPANSION AGREEMENT
                              -------------------

AMENDMENT NUMBER 2 TO THAT LEASE DATED MARCH 28,1997 AND AS AMENDED BY LEASE
AMENDMENT #I DATED OCTOBER 6, 1997 BETWEEN SPIEKER PROPERTIES, L.P., AS
LANDLORD, AND CROSSROUTE SOFTWARE, INCORPORATED, AS TENANT, FOR PREMISES LOCATED
AT 555 TWIN DOLPHIN DRIVE, REDWOOD CITY, CALIFORNIA.

Effective September 1, 1999, the above-described Lease will be amended as
follows to provide for Tenant's expansion premises:

1.   Expansion Premises. Approximately 3,610 square feet of rentable area
     ------------------
     located on the third floor of the building known as 555 Twin Dolphin Drive.
     The Premises as expanded herein are approximately as shown outlined in red
     on the attached floor plan (Exhibit A, Suite 350 and Exhibit A-1, Suite
     600).

2.   Premises. The Premises of the Lease as defined per the Basic Lease
     --------
     Information shall be amended such that effective September 1, 1999, the
     square footage shall increase from 17,198 rentable square feet to 20,808
     rentable square feet.

3.   Rent. Base Rent for the Premises shall be as follows:
     ----

     9/1/99 - 10/31/99:   Sixty One Thousand Sixty Eight and 11/100ths dollars
                          ($61,068.11) per month plus Tenant's Proportionate
                          Share of Basic Operating Cost per Paragraph 29 of the
                          Lease. Tenant's Proportionate Share of Basic Operating
                          Cost through December 1999 is estimated to be
                          $17,719.11 per month. Tenant's Proportionate Share of
                          Basic Operating Cost is estimated a year in advance
                          and collected on a monthly basis. Any adjustments
                          necessary (up or down) will be made at the end of the
                          operating year.

     11/1/99 - 10/31/00:  Sixty Two Thousand Seven Hundred Eighty Seven and
                          91/100ths dollars ($62,787.91) per month plus Tenant's
                          Proportionate Share of Basic Operating Cost per
                          Paragraph 29 of the Lease. Tenant's Proportionate
                          Share of Basic Operating Cost through December 1999 is
                          estimated to be $17,719.11 per month. Tenant's
                          Proportionate Share of Basic Operating Cost is
                          estimated a year in advance and collected on a monthly
                          basis. Any adjustments necessary (up or down) will be
                          made at the end of the operating year.

     11/1/00 - 10/31/01:  Sixty Four Thousand Nine Hundred Five and 52/100ths
                          dollars ($64,905.52) per month plus Tenant's
                          Proportionate Share of Basic Operating Cost per
                          Paragraph 29 of the Lease

     11/1/01 - 10/31/02   Sixty Seven Thousand Thirty Seven and 05/100ths
                          dollars ($67,037.05) per month plus Tenant's
                          Proportionate Share of Basic Operating Cost per
                          Paragraph 29 of the Lease.

5.   Security Deposit. The Security Deposit, as set forth in the Basic Lease
     ----------------
     Information of the Lease shall be increased from $60,193.00 to $75,000.00.
     The increase ($14,807.00) to the Security Deposit shall be due and payable
     upon execution of this Expansion Agreement
<PAGE>

6.   Tenant's Proportionate Share. Tenant's Proportionate Share per the Basic
     ----------------------------
     Lease Information of the Lease shall increase effective September 1, 1999
     from 8.66% to 10.49%

7.   Tenant Improvements. Tenant agrees to accept the Premises as so expanded in
     -------------------
     "as is" condition except for the improvements as described on the attached
     Exhibit B.

All other terms and conditions of the Lease shall remain in full force and
effect and shall apply to the expansion premises as well as to the original
premises.

Dated:  6-22-99
        -------

IN WITNESS WHEREOF, the parties hereto have executed this Expansion Agreement
the day and year first above written.

Landlord: SPIEKER PROPERTIES, L.P.
By: Spieker Properties, Inc.

       /s/ Nancy B. Gille
       ------------------

      By:  Nancy B. Gille
           --------------
      Its: Vice President
           --------------
      Dated:  6/24/99
              -------

Tenant:  EXTRICITY SOFTWARE, INCORPORATED

By: /s/ [ILLEGIBLE]^^
    -------------------

Its: VP Finance and CFO
     ------------------

Dated:   6-22-99
         -------
<PAGE>

                                   EXHIBIT A

                                  THIRD FLOOR

                                    [GRAPH]
<PAGE>

                                  EXHIBIT A-1

                                  SIXTH FLOOR

                                    [GRAPH]
<PAGE>

                                   EXHIBIT B
                                   ---------
                            to Expansion Agreement

Landlord, at Landlord's sole cost and expense, shall perform or cause to be
performed the following improvements to the Premises:

1.  Re-paint all interior walls; color selection by Tenant

2.  Steam clean carpeted area and clean/buff tiled area.
<PAGE>

555 Twin Dolphin Drive
Suite 110
Redwood City, CA 94065
(415) 591-1717
Fax (415) 591-9502
                                                                [SPIEKER
LEASE COMMENCEMENT (START-UP) LETTER                            PROPERTIES LOGO]

October 7, 1999

Karin Duff
Extricity Software. Inc.
555 Twin Dolphin Drive, Suite 600
Redwood City, Ca 94065

     Re:  Lease for Premises at 555 Twin Dolphin Drive, Redwood City, California
(the "Lease,")

Dear Karin:

Per Paragraph 3 of the Lease dated March 28, 1997, this letter Will serve to
define the term of the Expansion Agreement dated June 22, 1999, as beginning
September 13, 1999, and ending on October 31, 2002.

Per paragraph 5 of the Expansion Agreement, please remit $14,807.00 for the
increase of the security deposit.

Please amend the Letter of Credit No SB20011412, dated November 5, 1997 to
reflect the name Extricity Software, Inc..

Please indicate your acceptance of this by signing where indicated below and
returning all three (3) copies of this letter to our office. We will return a
fully executed copy to you for your files.

Your full obligations is now due and payable, broken down as follows:

       Increase in Security Deposit                           14,807.00
       Base Rent, Ste. 350-September 13-30                     6,819.53
       Est. Operating Expenses, Ste 350- September 13-30       1,844.47
       Base Rent, Ste. 650-September                          49,702.22
       Est. Operating Expenses, Ste 650- September            14,645.00
       Base Rent, Sts. 350&650-October                        61,068.11
       Estimated Operating Expenses Sts. 350&650-October      17,719.l1
                                                           ------------
       total:                                                166,605.44
       Received:                                            (144,574.00)
       Total Outstanding:                                  $  22,031.44
                                                           ============
<PAGE>

October 7, 1999
Karin Duff
Extricity Software, Inc.
Page 2

As a reminder, you will not be invoiced for rent. Please notify your accounting
department that rent is due and payable on or before the first of each month.
Please reference your Lease Id # (EXTRSOF01) on all checks sent to Spieker
Properties. All checks should be made payable to Spieker Properties and mailed
                                                 ------------------
to the following address:

Spieker Properties
P.O. Box 45587
Department 11511
San Francisco, California 94145-0587

Please make a note that as of November 1, 1999, a rent increase will take place
per your Lease and your monthly rental obligation will total $80,507.02
($62,787.91 base rent, $17,719.11 for operating expenses).

Please furnish this office with current evidence of the insurance coverage
required to be maintained by Tenant pursuant to Paragraph 11.E of the Lease,
and, naming Spieker Properties, L.P., as an additional insured.

It is truly a pleasure having Extricity Software, Inc. as a Tenant at the
Project and we wish you every success at your new location.

Should you have any questions or require any additional information, please feel
free to call me at (650) 591-1717.

Sincerely,

/s/ Anne Risberg

Anne Risberg
Project Manager

AGREED AND ACCEPTED:

Spieker Properties, L.P.,                      Extricity Software, Inc.
a California limited partnership

By:  Spieker Properties, Inc.,
     a Maryland corporation
     its general partner

                                               By:  /s/ [ILLEGIBLE]^^
                                                    ----------------------------
                                               Its: ____________________________

     By:   /s/ [ILLEGIBLE]^^
          ---------------------------
     Its:        10/18/99
          --------------------------
                                               Approved as to Legal Fee

                                               Signed: [ILLEGIBLE]^^
                                                      ------------------
                                               Date:     10-11-99
                                                    --------------------
<PAGE>

                                 AMENDMENT #3
                                 ------------

                              EXPANSION AGREEMENT
                              -------------------

AMENDMENT NUMBER 3 TO THAT LEASE DATED MARCH 28,1997 AND AS AMENDED BY LEASE
AMENDMENT #1 DATED OCTOBER 6, 1997 AND AMENDMENT NUMBER 2 EFFECTIVE SEPTEMBER 1,
1999 BETWEEN SPIEKER PROPERTIES, L.P., AS LANDLORD, AND EXTRICITY SOFTWARE,
INC., FORMERLY CROSSROUTE SOFTWARE, INCORPORATED, AS TENANT, FOR PREMISES
LOCATED AT 555 TWIN DOLPHIN DRIVE, REDWOOD CITY, CALIFORNIA.

Effective January 1, 2000, the above-described Lease will be amended as follows
to provide for Tenant's second expansion premises (the "Second Expansion
Premises"):

1.   Date of Agreement. The date of this Amendment Number 3 shall be December
     -----------------
     28, 1999.

2.   Second Expansion Premises. Approximately 5,255 square feet of rentable area
     -------------------------
     located on the first floor of the building known as 555 Twin Dolphin Drive
     as shown outlined in red on the attached floor plan (Exhibit A - Suite
     180).

3.   Premises. The Premises of the Lease as defined per the Basic Lease
     --------
     Information shall be amended such that effective January 1, 2000, the
     square footage shall increase from 20,808 rentable square feet to 26,063
     rentable square feet. The Premises as expanded herein are approximately as
     shown outlined in red on the attached floor plan (Exhibit A - Suite 180
     (Second Expansion Premises), Exhibit A-l, Suite 350 ("Expansion Premises")
     and Exhibit A-2, Suite 600 ("Original Premises") collectively, the
     Premises.

4.   Term for Second Expansion Premises. The Term for the Second Expansion
     ----------------------------------
     Premises shall be sixty (60) months commencing January 1, 2000.

5.   Rent. Rent for the Second Expansion Premises shall be as follows:
     ----

     1/1/2000-12/31/2000:     Nineteen Thousand Four Hundred Sixty Six and
                              00/100ths dollars ($19,466.00) per month plus
                              Basic Operating Cost per Paragraph 29 of the
                              Lease. Operating expenses through December 2000
                              are estimated to be $4,707.00 per month. Direct
                              operating expenses are estimated a year in advance
                              and collected on a monthly basis. Any adjustments
                              necessary (up or down) will be made at the end of
                              the operating year.

     1/1/2001-12/31/2001:     Twenty Thousand One Hundred Forty Seven and
                              00/100ths dollars ($20,147.00) per month per month
                              plus Basic Operating Cost per Paragraph 29 of the
                              Lease.
<PAGE>

     1/1/2002-12/31/2002:     Twenty Thousand Eight Hundred Fifty Two and
                              00/100ths dollars ($20,852.00) per month per month
                              plus Basic Operating Cost per Paragraph 29 of the
                              Lease.

     1/1/2003-12/31/2003:     Twenty One Thousand Eight Hundred Fifty Two and
                              00/100ths dollars ($21,582.00) per month per month
                              plus Basic Operating Cost per Paragraph 29 of the
                              Lease.

     1/1/2004-12/31/2004:     Twenty Two Thousand Three Hundred Thirty Seven and
                              00/100ths dollars ($22,337.00) per month per month
                              plus Basic Operating Cost per Paragraph 29 of the
                              Lease.

                              Rent for the Expansion Premises and the Original
                              Premises shall remain as enumerated in Amendment
                              Number 2 and shall not in any way be amended,
                              modified or altered by this Amendment Number 3.

6.   Security Deposit.        Three hundred thousand and 00/100 dollars
     ----------------         ($300,000.00) in the form of a letter of credit
                              pursuant to the below-itemized terms.

     A.   (i) Delivery of Letter of Credit. In addition to the existing Security
          Deposit currently held by Landlord, Tenant shall, on execution of this
          Amendment Number 3, deliver to Landlord and cause to be in effect
          during the Lease Term for the Second Expansion Premises an
          unconditional, irrevocable letter of credit ("LOC") in the amount
          specified above. The LOC shall be in a form acceptable to Landlord and
          shall be issued by an LOC bank selected by Tenant and acceptable to
          Landlord. An LOC bank is a bank that accepts deposits, maintains
          accounts, has a local office that will negotiate a letter of credit,
          and the deposits of which are insured by the Federal Deposit Insurance
          Corporation. Tenant shall pay all expenses, points, or fees incurred
          by Tenant in obtaining the LOC. The LOC shall not be mortgaged,
          assigned or encumbered in any manner whatsoever by Tenant without the
          prior written consent of Landlord. Tenant acknowledges that Landlord
          has the right to transfer or mortgage its interest in the Project, the
          Building and in this Lease and Tenant agrees that in the event of any
          such transfer or mortgage, Landlord shall have the right to transfer
          or assign the LOC and/or the LOC Security Deposit (as defined below)
          to the transferee or mortgagee, and in the event of such transfer,
          Tenant shall look solely to such transferee or mortgagee for the
          return of the LOC and/or the LOC Security Deposit.

          (ii) Replacement of Letter of Credit. Tenant may, from time to time,
          replace any existing LOC with a new LOC if the new LOC (a) becomes
          effective at least thirty (30) days before expiration of the LOC that
          it replaces; (b) is in the required LOC amount; (c) is issued by an
          LOC bank acceptable to Landlord; and (d) otherwise complies with the
          requirements of this Paragraph 6 A.

          (iii) Landlord's Right to Draw on Letter of Credit. Landlord shall
          hold the LOC as security for the performance of Tenant's obligations
          under the Lease. If, after notice and failure to cure within any
          applicable period provided in this Lease, Tenant defaults on any
          provision of the Lease, Landlord may, without prejudice to any other
          remedy it has, draw on that portion of the LOC necessary to (a) pay
          Rent or other sum in default; (b) pay or reimburse Landlord for any
          amount that Landlord may spend or become obligated
<PAGE>

          to spend in exercising Landlord's rights under Paragraph 25 (Right of
          Landlord to Perform); and/or (c) compensate Landlord for any expense,
          loss, or damage that Landlord may suffer because of Tenant's default.
          If Tenant fails to renew or replace the LOC at least thirty (30) days
          before its expiration, Landlord may, without prejudice to any other
          remedy it has, draw on the entire amount of the LOC.

     B.   LOC Security Deposit. Any amount of the LOC that is drawn on by
          Landlord but not applied by Landlord shall be held by Landlord as a
          security deposit (the "LOC Security Deposit") in accordance with
          Paragraph 15 of the Lease.

     C.   Restoration of Letter of Credit and LOC Security Deposit. If Landlord
          draws on any portion of the LOC and/or applies all or any portion of
          such draw, Tenant shall, within five (5) business days after demand by
          Landlord, either (a) deposit cash with Landlord in an amount that,
          when added to the amount remaining under the LOC and the amount of any
          LOC Security Deposit, shall equal the LOC Amount then required under
          this Amendment Number 3; or (b) reinstate the LOC to the full LOC
          Amount.

7.   Tenant's Proportionate Share. Tenant's Proportionate Share per the Basic
     ----------------------------
     Lease Information of the Lease shall increase effective January 1, 2000
     from 10.49% to 13.14%. Upon the expiration or earlier termination of the
     Term for the Original Premises and the Expansion Premises, Tenant's
     proportionate share shall be reduced to 2.65%

8.   Tenant Improvements. Tenant agrees to accept the Second Expansion Premises
     -------------------
     as so expanded in "as is" condition.

All other terms and conditions of the Lease shall remain in full force and
effect and shall apply to the Second Expansion Premises as well as to the
Expansion Premises and the Original Premises. IN WITNESS WHEREOF, the parties
hereto have executed this Amendment Number 3 as of the Date of Agreement above
written.

Landlord: SPIEKER PROPERTIES, L.P.
By: Spieker Properties, Inc.

       /s/ Nancy B. Gille
     ----------------------

     By:  Nancy B. Gille
     Its:  Vice President

     Dated:  2/8/00
             ----------

Tenant:  EXTRICITY SOFTWARE, INC.

By: /s/ Stephan Albertolle
    -----------------------

Printed: Stephan Albertolle
         ------------------

Its: CFO
     ----------------------

Dated:_____________________<PAGE>

                                                                   Exhibit 10.12

                                LOAN AGREEMENT

     This Loan Agreement is entered into as of October 6, 1997 (this "Loan
Agreement") between CrossRoute Software, Inc., a California corporation (herein
called "Borrower"), and Imperial Bank (herein called "Bank").

     1.   The Commitment. Subject to all the terms and conditions of this Loan
Agreement and prior to the termination of its commitment as hereinafter
provided, Bank hereby agrees to make loans (each a "loan" or collectively,
"loans") to Borrower in such amounts as Borrower shall request pursuant to this
Section 1C at any time from the date hereof through October 5, 1998 (the
"Availability End Date"), in an aggregate principal amount not to exceed
$750,000.00 (the "Commitment"). If at any time or for any reason, the
outstanding principal amount of the Loan Account (as hereinafter defined) is
greater than the Commitment, Borrower shall immediately pay to Bank, in cash,
the amount of such excess. Any commitment of Bank, pursuant to the terms of this
Loan Agreement, to make Loans shall expire on the Availability End Date, subject
to Bank's right to renew said commitment in its sole and absolute discretion at
Borrower's request. Any such renewal of said commitment shall not be binding
upon Bank unless it is in writing and signed by an officer of Bank. Loans which
are repaid by Borrower may not be reborrowed. Borrower promises to pay to Bank
the outstanding unpaid principal balance (and all accrued unpaid interest
thereon) of the Loan Account on October 5, 2001 ("Maturity Date").

          A.  Loans. The amount of each Loan made by Bank-to Borrower hereunder
shall be debited to the loan ledger account of Borrower maintained by Bank for
the Commitment (herein called the "Loan Account") and Bank shall credit the Loan
Account with all loan repayments in respect thereof made by Borrower. When
Borrower desires to obtain a Loan, Borrower shall notify Bank (which notice
shall be signed by an officer of Borrower and shall be irrevocable) in
accordance with Section 2 hereof, to be received no later than 3:00 p.m. Pacific
time one (1) Banking Day before the day on which the Loan is to be made. When
Borrower desires to obtain a Loan to purchase equipment, software or furniture
(herein called an "Equipment Advance"), the notice shall be signed by an officer
of Borrower and include a copy of the invoice for the equipment to be financed.
Loans for equipment will be limited to one hundred percent (100%) of the invoice
amount for such equipment approved from time to time by Bank and purchased by
Borrower subsequent to April 1, 1997, less any taxes, shipping and freight
charges or discounts, warranty charges, installation expenses and similar soft
costs. Loans for software and furniture will be limited to: (a) one hundred
percent of the invoice amount for such software and furniture approved from time
to time by Bank, less any taxes, shipping and freight charges or discounts,
warranty charges, installation expenses and similar soft costs and (b)
$200,000.00.

              (1) SVB Advance. Subject to the availability of the Commitment and
in reliance on the representations and warranties of Borrower set forth herein,
in order to repay all existing loans and related indebtedness ("SVB Loans") owed
by Borrower to Silicon Valley Bank ("SVB"), Bank hereby agrees to make loans to
Borrower in an aggregate principal amount not to exceed $250,000.00 (the "SVB
Advance"); provided, however, that the outstanding amounts under the SVB Advance
shall be deemed to constitute Loans for the purpose of calculating the
availability under the Commitment. If at any time or for any reason, the
outstanding amount of the SVB Advance is greater than $250,000.00, Borrower
shall pay immediately to Bank, in cash, the amount of such excess.

              (2) Limitations on Advance of any Loan. Notwithstanding any of the
foregoing provisions contained in this Section 1, prior to any advance of a
Loan, except for the initial advance of a Loan to repay the SVB Loans, Bank
shall have received satisfactory evidence of the release of all existing liens
against the Collateral to ensure Bank's first priority lien in the Collateral.

          B.  Principal Repayment and Interest Payments on SVB Advance. Borrower
further promises to pay to Bank, on or before the tenth day of the month
immediately following the date of the SVB Advance and on or before the tenth
(10th) day of each month thereafter through October 5, 1999, (a) the outstanding
principal balance of the SVB Advance in twenty-four (24) equal monthly
installments plus (b) interest on the average daily unpaid balance of the of the
SVB Advance accruing from and after the date of the SVB Advance, during the
immediately preceding month at a rate of interest and computed in accordance
with Section 1.C. hereof.

                                       1.
<PAGE>

          C.  Interest Payments Prior to Maturity Date. Borrower further
promises to pay to Bank from the date of the initial Equipment Advance through
October 5, 1998, on or before the tenth (10th) day of each month, interest on
the average daily unpaid balance of the Equipment Advance during the immediately
preceding month at a rate of interest equal to one percent (1%) per annum in
excess of the Prime Rate, which shall vary concurrently with any change in the
Prime Rate. Interest shall be computed at the above rate on the basis of the
actual number of days during which the principal balance of the Loan Account is
outstanding divided by 360, which shall for interest computation purposes be
considered one (1) year.

          D.  Principal Repayment and Interest Payments Following Availability
End Date. Borrower further promises to pay to Bank, on or before October 5, 1998
and on or before the tenth (10th) day of each month thereafter through the
Maturity Date, (a) the outstanding principal balance of the Equipment Advance on
the Availability End Date in thirty-six (36) equal monthly installments plus (b)
interest on the average daily unpaid balance of the Loan Account accruing from
and after October 5, 1998, during the immediately preceding month at the rate of
interest and computed in accordance with Section 1.C. hereof.

     2.   Loan Requests. Requests for Loans hereunder shall be in writing duly
executed by Borrower in a form satisfactory to Bank and shall contain a
certification setting forth the matters referred to in Section 1, which shall
disclose that Borrower is entitled to the amount and type of Loan being
requested. Bank is hereby authorized to charge Borrower's deposit account with
Bank for all sums due Bank under this Loan Agreement.

     3.   Delivery of Payments. Payment to Bank of all amounts due hereunder
shall be made at its Santa Clara Valley Regional office, or at such other place
as may be designated in writing by Bank from time to time. If any payment date
fall on a day that is not a day that Bank is open for the transaction of
business ("Banking Day"), the payment due date shall be extended to the next
Banking Day.

     4.   Late Charge. If any interest payment, principal payment or principal
balance payment required hereunder is not received by Bank on or before ten (10)
days from the date in which such payment becomes due, Borrower shall pay to
Bank, a late charge equal to the lesser of (a) five percent (5.0%) of the amount
of such unpaid payment, in addition to said unpaid payment or (b) the maximum
amount permitted to be charged by applicable law, until remitted to Bank;
provided; however, nothing contained in this Section 4, shall be construed as
any obligation on the part of Bank to accept payment of any past due payment or
less than the total unpaid principal balance of the applicable Loan Account
following the Maturity Date. All payments shall be applied first to any late
charges due hereunder, next to accrued interest then payable and the remainder,
if any, to reduce any unpaid principal due under the applicable Loan Account.

     5.   Default Interest. From and after the Maturity Date, or such earlier
date as all sums owing under any Loan Account becomes due and payable by
acceleration or otherwise, or upon the occurrence of an Event of Default, at the
option of Bank all sums owing under the applicable Loan Account shall bear
interest until paid in full at a rate equal to the lesser of (a) five percent
(5.0%) per annum in excess of the then applicable interest rate provided for in
Section 1.C. hereof or (b) the maximum amount permitted to be charged by
applicable law, until all obligations hereunder are repaid in full or the Event
of Default is waived or cured to the satisfaction of Bank, as applicable.

     6.   Definitions. As used in this Loan Agreement and unless otherwise
defined herein, all initially capitalized terms shall have the meanings set
forth on Exhibit A attached hereto and incorporated herein by this reference.

     7.   Representations and Warranties. Borrower represents and warrants to
Bank: (a) That Borrower is a corporation, duly organized and existing in the
State of its incorporation and the execution, delivery and performance of each
of the Loan Documents are within Borrower's corporate powers, have been duly
authorized and are not in conflict with law or the terms of any charter, by-law
or other incorporation papers, or of any indenture, agreement or undertaking to
which Borrower is a party or by which Borrower is bound or affected; (b)
Borrower is, and at the time the Collateral becomes subject to Bank's security
interest will be, the true and lawful owner of and has, and at the time the
Collateral becomes subject to Bank's security interest will have, good and clear
title to the Collateral, subject only to Bank's rights therein and to Permitted
Liens; (c) Each Account is, and at the time the Account comes into existence
will be, a true and correct statement of a bona fide indebtedness incurred by
the debtor named therein in the amount of the Account for either

                                       2.
<PAGE>

merchandise sold or delivered (or being held subject to Borrower's delivery
instructions) to, or services rendered, performed and accepted by, the account
debtor; (d) That there are and will be no defenses, counterclaims, or setoffs
which may be asserted against the Accounts from time to time, except as
permitted in the definition thereof; (e) Any and all financial information,
including information relating to the Collateral, submitted by Borrower to Bank,
whether previously or in the future, is and will be true and correct; (f) There
is no litigation or other proceeding pending or threatened against or affecting
Borrower, and Borrower is not in default with respect to any order, writ,
injunction, decree or demand of any court or other governmental or regulatory
authority; (g) (i) The consolidated balance sheets of Borrower dated as of
August 31, 1997, and the related consolidated profit and loss statements for the
fiscal year then ended, copies of which have heretofore been delivered to Bank
by Borrower, and all other statements and data submitted in writing by Borrower
to Bank in connection with Borrower's request for credit are true and correct,
and said balance sheet and profit and loss statement accurately present the
financial condition of Borrower as of the date thereof and the results of the
operations of Borrower for the period covered thereby, and have been prepared in
accordance with GAAP, (ii) since such date, there have been no material adverse
changes in the financial condition of Borrower, and (iii) Borrower has no
knowledge of any liabilities, contingent or otherwise, which are not reflected
in said balance sheet, and Borrower has not entered into any special commitments
or substantial contracts which are not reflected in said balance sheet, other
than in the ordinary and normal course of its business, which may have a
Material Adverse Effect upon its financial condition, operations or business as
now conducted;  (h) Borrower has no liability for any delinquent local, state
or federal taxes, and, if Borrower has contracted with any government agency, it
has no liability for renegotiation of profits; and (i) Borrower, as of the date
hereof, possesses all necessary trademarks, trade names, copyrights, patents,
patent rights, and licenses to conduct its business as now operated, without any
known conflict with valid trademarks, trade names, copyrights, patents, patent
rights and license rights of others.

     8.   Negative Covenants. Borrower agrees that so long as any loans,
obligations or liabilities remain outstanding or unpaid to Bank or the
commitment of Bank hereunder is in effect, neither Borrower, nor any of its
subsidiaries ("Subsidiaries") will, without the prior written consent, which
will not unreasonably be withheld, of Bank:

          A.  Make any substantial change in the character of its business as
     now conducted;

          B.  Create, incur, assume or permit to exist any Indebtedness other
than loans from Bank except obligations now existing as shown in the financial
statements referenced in Section 7.(g)(i), excluding those being refinanced by
Bank, Subordinated Debt and Permitted Indebtedness;

          C.  Create, incur, assume or permit to exist any mortgage, pledge,
encumbrance, lien or charge of any kind (including the charge upon property at
any time purchased or acquired under conditional sale or other title retention
agreement) upon any asset now owned or hereafter acquired by it, other than
Permitted Liens and liens in favor of Bank;

          D.  Sell, dispose of or grant a security interest in any of the
Collateral other than to Bank (other than the disposing of such Collateral in
the ordinary and normal course of its business as now conducted or other assets
which are obsolete or otherwise considered surplus), or execute any financing
statements covering the Collateral in favor of any secured party or Person other
than Bank;

          E.  Sell, transfer, assign, mortgage, pledge, license, lease, grant a
security interest in, or otherwise encumber any of its Intellectual Property,
other than licenses or leases conducted in the ordinary and normal course of its
business;

          F.  Make any loans or advances to any Person or other entity other
than in the ordinary and normal course of its business as now conducted
(provided that such loans or advances are not made to any Person or entity which
is controlled by or under common control with Borrower).

          G.  Purchase or otherwise acquire for an amount greater than Five
Hundred Thousand Dollars ($500,000), all or substantially all of the assets or
business of any Person or other entity; or liquidate, dissolve, merge or
consolidate, or commence any proceedings therefore; or, except in the ordinary
and normal course of its business as now conducted, sell (including, without
limitation, the selling of any property or other asset accompanied by the
leasing back of

                                       3.
<PAGE>

the same) any assets including any fixed assets, any property, or other assets
necessary for the continuance of its business as now conducted; and

          H.  Declare or pay any dividend or make any other distribution on any
of its capital stock now outstanding or hereafter issued or purchase, redeem or
retire any of such stock other than in dividends or distributions payable in
Borrower's or any such Subsidiary's capital stock, except for the repurchase of
Borrower's capital stock from officers, directors, employees or consultants of
Borrower upon termination of their employment with or rendering of service to
Borrower.

     9.   Affirmative Covenants. Borrower affirmatively covenants that so long
as any loans, obligations or liabilities remain outstanding or unpaid to Bank or
the commitment of Bank hereunder is in effect, it will:

          A.  Furnish Bank from time to time such financial statements and
information as Bank may reasonably request and inform Bank immediately upon the
occurrence of a material adverse change therein;

          B.  Permit representatives of Bank to conduct an audit of Borrower's
books and records relating to the Collateral and make extracts therefrom, with
results satisfactory to Bank, provided that Bank shall use its best efforts to
not interfere with the conduct of Borrower's business, and to the extent
possible to arrange for verification of the Accounts directly with the account
debtors obligated thereon or otherwise, all under reasonable procedures
acceptable to Bank and at Borrower's sole expense;

          C.  Promptly notify Bank of any attachment or other legal process
levied against any of the Collateral and any information received by Borrower
relative to the Collateral, including the Accounts, the account debtors or other
Persons obligated in connection therewith, which may in any way affect the value
of the Collateral or the rights and remedies of Bank in respect thereto;

          D.  Reimburse Bank upon demand for any and all legal costs, including
reasonable attorneys' fees, and other expense incurred in collecting any sums
payable by Borrower under any Loan Account or any other obligation secured
hereby enforcing any term or provision of this Loan Agreement or otherwise or in
the checking, handling and collection of the Collateral and the preparation and
enforcement of any agreement relating thereto;

          E.  Notify Bank of each location and of each office of Borrower at
which records of Borrower relating to the Accounts are kept;

          F.  Provide, maintain and deliver to Bank policies insuring the
Collateral against loss or damage by such risks and in such amounts, forms and
companies as Bank may require (to the extent customarily maintained by
businesses similar to Borrower) and with loss payable to Bank, and, in the event
Bank takes possession of the Collateral, the insurance policy or policies and
any unearned or returned premium thereon shall at the option of Bank become the
sole property of Bank, such policies and the proceeds of any other insurance
coveting or in any way relating to the Collateral, whether now in existence or
hereafter obtained, being hereby assigned to Bank;

          G.  In the event the unpaid balance of any Loan Account shall exceed
the maximum amount of outstanding loans to which Borrower is entitled under
Section 1 hereof, as applicable, Borrower shall immediately pay to Bank for
credit to such Loan Account the amount of such excess;

          H.  Maintain and preserve all rights, franchises and other authority
adequate and necessary for the conduct of its business and maintain and preserve
its existence in the State of its incorporation and any other state(s) in which
Borrower conducts its business, except with respect to such other state(s), as
the failure to do so would not have a Material Adverse Effect;

          I.  Maintain public liability, property damage and workers
compensation insurance and insurance on all its insurable property against fire
and other hazards with responsible insurance carriers to the extent usually
maintained

                                       4.
<PAGE>

by similar businesses. Borrower shall provide evidence of property insurance in
amounts and types acceptable to Bank, and certificates naming Bank as a loss
payee;

          J.  Pay and discharge, before the same becomes delinquent and
penalties accrue thereon, all taxes, assessments and governmental charges upon
or against it or any of its properties, and any of its other liabilities at any
time existing, except to the extent and so long as: (1) the same are being
contested in good faith and by appropriate proceedings in such manner as not to
cause any Material Adverse Effect or the loss of any right of redemption from
any sale thereunder; and (2) it shall have set aside on its books reserves
(segregated to the extent required by GAAP);

          K.  Maintain a standard and modern system of accounting in accordance
with GAAP on a basis consistently maintained; permit Bank's representatives to
have access to, and to examine its properties, books and records at all
reasonable times; provided that Bank shall use its best efforts to not interfere
with the conduct of Borrower's business;

          L.  Maintain its properties, equipment and facilities in good order
and repair;

          M.  Maintain its primary banking accounts with Bank or Imperial
Securities Corporation; and

          N.  Prior to allowing any of Borrower's raw materials, work in
process, furnished goods inventory and property, plant and equipment to be
transported to or be held at any contract manufacturer, warehouse or other
location (other than with bona fide distributors and retail accounts), Borrower
shall provide notice to Bank and Borrower shall have complied with such filing
and notice requirements as shall, in Bank's opinion, assure Borrower's and
Bank's priority in such property over creditors of such contract manufacturer,
warehouseman or operator of such other location, including, without limitation,
making filings under California Commercial Code (S)2326, providing notice under
California Commercial Code (S)9114 and making filings and publications as
required under California Civil Code (S)3440.1 and (S)3440.5 All such filings,
notices and publications shall be in form and substance satisfactory to Bank.

     10.  Financial Covenants and Information. All financial covenants and
financial information referenced herein shall be interpreted and prepared in
accordance with GAAP as used in the United States of America applied on a basis
consistent with previous years. Compliance with the financial covenants shall be
calculated and monitored on a monthly basis, except as shall be expressly stated
to the contrary. Borrower affirmatively covenants that so long as any loans,
obligations or liabilities remain outstanding or unpaid to Bank or any
commitment is outstanding hereunder, it will, on a consolidated basis:

          A.  At all times, maintain a Minimum Tangible Net Worth (meaning all
assets, excluding any value for goodwill, trademarks, patents, copyrights,
organization expense and other similar intangible items, less all liabilities
(excluding deferred revenue), plus Subordinated Debt) of not less than
$1,000,000.00,

          B.  At all times maintain a Minimum Quick Ratio (meaning all cash plus
Accounts divided by current liabilities (excluding deferred revenue)) of not
less than 1.25:1.00;

          C.  As soon as it is available, but not later than twenty-five (25)
days after and as of the end of each month, deliver to Bank internally-prepared
financial statement consisting of a balance sheet and profit and loss statement,
in form satisfactory to Bank, and a Compliance Certificate in the form of
Exhibit B attached hereto and incorporated herein by this reference, certified
by an officer of Borrower;

          D.  As soon as it is available, but not later than one hundred twenty
(120) days after the end of Borrower's fiscal year, deliver to Bank unqualified
copies of Borrower's consolidated financial statements together with changes in
financial position audited by an independent certified public accountant
selected by Borrower but acceptable to Bank;]

          E.  Upon the reasonable request of Bank, deliver to Bank current
budgets, sales projections, operating plans and other financial exhibits and
information in form and substance satisfactory to Bank; and

                                       5.
<PAGE>

          F.  Upon any officer becoming aware, deliver immediately to Bank
written notice of any pending or threatened litigation claiming, or reasonably
likely to result in, damages against Borrower in an amount in excess of
$50,000.00.

     11.  Loan Fee. In addition to any other amounts due, or to become due,
concurrent with the execution hereof, in connection with the Equipment Advance,
Borrower shall deliver to Bank a loan fee in the amount of One Thousand Two
Hundred and Fifty Dollars ($1,250.00).

     12.  Default and Remedies. The occurrence of any one or more of the
following shall constitute an "Event of Default": (a) Default be made in the
payment of any obligation by Borrower under any Loan Document; (b) Except for
any failure to pay as described in clause (a) above, breach be made in any
warranty, statement, promise, term or condition, contained herein or in any
other Loan Document and the same shall not have been cured to the satisfaction
of Bank within fifteen (15) days after Borrower shall have become aware thereof,
whether by written notice from Bank, or otherwise, (except that no cure period
shall exist for breaches in respect of Borrower's obligations under Section 8,
Subsections 9.A., 9.B., 9.C., 9.F., 9.G., 9.H. and 9.I., Subsections 10.A.,
10.B., 10.C., and 10.D. of this Loan Agreement, and Sections 1 and 2 of the
General Security Agreement); (c) Any statement, warranty or representation made
by Borrower at any time proves false; (d) Borrower defaults in the repayment of
any principal of or the payment of any interest on any indebtedness exceeding in
the aggregate principal amount $10,000.00 or breaches or violates any term or
provision of any promissory note, loan agreement, mortgage, indenture or other
evidence of such indebtedness pursuant to which amounts outstanding in the
aggregate exceed $10,000.00 if the effect of such breach is to permit the
acceleration of such indebtedness, whether or not waived by the note holder or
obligee, and such failure shall not have been cured to Bank's satisfaction
within fifteen (15) calendar days after Borrower shall become aware thereof,
whether by written notice from Bank or otherwise, or there has in fact been an
acceleration of such indebtedness; (e) Borrower becomes insolvent or makes an
assignment for the benefit of creditors; (f) Any proceeding be commenced by
Borrower under any bankruptcy, reorganization, arrangement, readjustment of debt
or moratorium law or statute or, any such a proceeding is commenced against
Borrower and is not dismissed or stayed within ten (10) days (provided that no
Loans will be made prior to the dismissal of such proceeding); (g) Any money
judgment, writ of attachment, garnishment, execution or other legal process be
entered against Borrower or issued against any material property of Borrower
which is not fully covered by insurance (subject to reasonable deductibles) and
remains unvacated, unbonded, unstayed or unpaid or undischarged for more than
fifteen (15) days (whether or not consecutive) or in any event later than five
(5) days prior to the date of any proposed sale thereunder, or if any assessment
for taxes against Borrower other than against any of its real property, is made
by the Federal or State government or any department thereof; or (h) Any change
in Borrower's financial condition or operations which has a Material Adverse
Effect. on the occurrence and during the continuance of an Event of Default,
Bank may, at its option and without demand first made and without notice to
Borrower, do any one or more of the following: (i) Terminate its obligation to
make loans to Borrower as provided in Section 1 hereof; (ii) Declare all sums
secured hereby immediately due and payable; (iii) Immediately take possession of
the Collateral wherever it may be found, using all legally permissible means to
do so, or require Borrower to assemble the Collateral and make it available to
Bank at a place designated by Bank which is reasonably convenient to Borrower
and Bank, and Borrower waives all claims for damages due to or arising from or
connected with any such taking; (iv) Proceed in the foreclosure of Bank's
security interest and sale of the Collateral in any manner permitted by law, or
provided for herein; (v) Sell, lease or otherwise dispose of the Collateral at
public or private sale, with or without having the Collateral at the place of
sale, and upon terms and in such manner as Bank may determine, and Bank may
purchase same at any such sale; (vi) Retain the Collateral in full satisfaction
of the obligations secured thereby to the extent permitted under the Uniform
Commercial Code; or (vii) Exercise any remedies of a secured party under the
Uniform Commercial Code. Prior to any such disposition, Bank may, at its option,
cause any of the Collateral to be repaired or reconditioned in such manner and
to such extent as Bank may deem advisable, and any sums expended therefor by
Bank shall be repaid by Borrower and secured hereby. Bank shall have the right
to enforce one or more remedies hereunder successively or concurrently, and any
such action shall not stop or prevent Bank from pursuing any further remedy
which it may have hereunder or by law. If a sufficient sum is not realized from
any such disposition of the Collateral to pay all obligations secured by this
Loan Agreement, Borrower hereby promises and agrees to pay Bank any deficiency.

     13.  Records Retention. Borrower authorizes Bank to destroy all invoices,
delivery receipts, reports and other types of documents and records submitted to
Bank in connection with the transactions contemplated herein at any time
subsequent to four (4) months from the time such items are delivered to Bank.

                                       6.
<PAGE>

     14.  Attorneys' Fees. Borrower agrees to reimburse Bank up to $2,000.00 for
its reasonable attorneys' fees and expenses incurred in connection with the
negotiation, preparation, execution and delivery of the Loan Documents.

     15.  Governing Law; Judicial Reference.

          A.  Governing Law. This Agreement shall be deemed to have been made in
the State of California and the validity, construction, interpretation, and
enforcement hereof, and the rights of the parties hereto, shall be determined
under, governed by, and construed in accordance with the internal laws of the
State of California, without regard to principles of conflicts of law.

          B.  Judicial Reference.

              (1) Other than (a) nonjudicial foreclosure and all matters in
connection therewith regarding security interests in real or personal property;
or (b) the appointment of a receiver, or the exercise of other provisional
remedies (any and all of which may be initiated pursuant to applicable law),
each controversy, dispute or claim between the parties arising out of or
relating to this Loan Agreement or the other Loan Documents, which controversy,
dispute or claim-is not settled in writing within thirty (30) days after the
"Claim Date" (defined as the date on which a party subject to this Loan
Agreement gives written notice to all other parties that a controversy, dispute
or claim exists), will be settled by a reference proceeding in California in
accordance with the provisions of Section 638 et seq. of the California Code of
Civil Procedure, or their successor section ("CCP"), which shall constitute the
exclusive remedy for the settlement of any controversy, dispute or claim
concerning this Loan Agreement, including whether such controversy, dispute or
claim is subject to the reference proceeding and except as set forth above, the
parties waive their rights to initiate any legal proceedings against each other
in any court or jurisdiction other than the Superior Court in the County where
the real property, if any, is located or Santa Clara County, if none (the
"Court"). The referee shall be a retired Judge of the Court selected by mutual
agreement of the parties, and if they cannot so agree within forty-five (45)
days after the Claim Date, the referee shall be promptly selected by the
Presiding Judge of the Court (or his/her representative). The referee shall be
appointed to sit as a temporary judge, with all of the powers for a temporary
judge, as authorized by law, and upon selection should take and subscribe to the
oath of office as provided for in Rule 244 of the California Rules of Court (or
any subsequently enacted Rule). Each party shall have one peremptory challenge
pursuant to CCP (S) 170.6. The referee shall (x) be requested to set the matter
for hearing within sixty (60) days after the date of selection of the referee
and (y) try any and all issues of law or fact and report a statement of decision
upon them, if possible, within ninety (90) days of the Claim Date. Any decision
rendered by the referee will be final, binding and conclusive and judgement
shall be entered pursuant to CCP (S) 644 in any court in the State of California
having jurisdiction. Any party may apply for a reference proceeding at any time
after thirty (30) days following notice to any other party of the nature of the
controversy, dispute or claim, by filing a petition for a hearing and/or trial.
All discovery permitted by this Loan Agreement shall be completed no later than
fifteen (15) days before the first hearing date established by the referee. The
referee may extend such period in the event of a party's refusal to provide
requested discovery for any reason whatsoever, including, without limitation,
legal objections raised to such discovery or unavailability of a witness due to
absence or illness. No party shall be entitled to "priority" in conducting
discovery. Depositions may be taken by either party upon seven (7) days written
notice, and request for production or inspection of documents shall be responded
to Within ten (10) days after service. All disputes relating to discovery which
cannot be resolved by the parties Shall be submitted to the referee whose
decision shall be final and binding upon the parties. Pending appointment of the
referee as provided herein, the Superior Court is empowered to issue temporary
and/or provisional remedies, as appropriate.

              (2) Except as expressly set forth in this Loan Agreement, the
referee shall determine the manner in which the reference proceeding is
conducted including the time and place of all hearings, the order of
presentation of evidence, and all other questions that arise with respect to the
course of the reference proceeding. All proceedings and hearings conducted
before the referee, except for trial, shall be conducted without a court
reporter except that when any party so requests, a court reporter will be used
at any hearing conducted before the referee. The party making such a request
shall have the obligation to arrange for and pay for the court reporter. The
costs of the court reporter at the trial shall be borne equally by the parties.

                                       7.
<PAGE>

          (3) The referee shall be required to determine all issues in
accordance with existing case law and the statutory laws of the State of
California. The rules of evidence applicable to proceedings at law in the State
of California will be applicable to the reference proceeding. The referee shall
be empowered to enter equitable as well as legal relief, to provide all
temporary and/or provisional remedies and to enter equitable orders that will be
binding upon the parties. The referee shall issue a single judgment at the close
of the reference proceeding which shall dispose of all of the claims of the
parties that are the subject of the reference. The parties hereto expressly
reserve the right to contest or appeal from the final judgment or any appealable
order or appealable judgment entered by the referee. The parties hereto
expressly reserve the right to findings of fact, conclusions of laws, a written
statement of decision, and the right to move for a new trial or a different
judgment, which new trial, if granted, is also to be a reference proceeding
under this provision.

          (4) In the event that the enabling legislation which provides for
appointment of a referee is repealed (and no successor statute is enacted), any
dispute between the parties that would otherwise be determined by the reference
procedure herein described will be resolved and determined by arbitration. The
arbitration will be conducted by a retired judge of the Court, in accordance
with the California Arbitration Act, (S) 1280 through (S) 1294.2 of the CCP as
amended from time to time. The limitations with respect to discovery as set
forth hereinabove shall apply to any such arbitration proceeding.

     16.  Miscellaneous Provisions.

          A.  Nothing herein shall in any way limit the effect of the conditions
set forth in any other security or other agreement executed by Borrower; but
each and every condition hereof shall be in addition thereto.

          B.  No failure or delay on the part of Bank, in the exercise of any
power, right or privilege hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise thereof.

          C.  All rights and remedies existing under this Loan Agreement or any
other Loan Document are cumulative to, and not exclusive of, any rights or
remedies otherwise available.

          D.  All headings and captions in this Loan Agreement and any related
documents are for convenience only and shall not have any substantive effect.

          E.  This Loan Agreement may be executed in any number of counterparts,
each of which when so delivered shall be deemed an original, but all such
counterparts shall constitute but one and the same instrument. Each such
agreement shall become effective upon the execution of a counterpart hereof or
thereof by each of the parties hereto and telephonic notification that such
executed counterparts has been received by Borrower and Bank.

BANK:                              BORROWER:

IMPERIAL BANK                      CrossRoute Software, Inc.
                                   a California corporation

By:   /s/ Sunita R. Patel          By:   /s/ Ken Ross
      -------------------                ------------
      Sunita R. Patel                    Kenneth Ross
      Assistant Vice President           President and Chief Executive Officer

LIST OF EXHIBITS AND SCHEDULES
------------------------------

Exhibit A: Definitions
 SCHEDULE 1 TO EXHIBIT A: List of Specific Permitted Indebtedness
 SCHEDULE 2 TO EXHIBIT A: List of Specific Permitted Liens

                                       8.
<PAGE>

                                   Exhibit A

                                  DEFINITIONS

     "Accounts" means any right to payment for goods sold or leased, or to be
sold or to be leased, or for services rendered or to be rendered no matter how
evidenced, including accounts receivable, contract rights, chattel paper,
instruments, purchase orders, notes, drafts, acceptances, general intangibles
and other forms of obligations and receivables.

     "Capital Lease" means, as to any Person, any lease of any Property by such
Person as lessee that is, or should be in accordance with Financing Accounting
Standards Board Statement No. 13, classified and accounted for as a "capital
lease" on the balance sheet of such Person prepared in accordance with GAAP.

     "Capital Lease Obligation" means, with respect to any Capital Lease, the
amount of the obligation of the lessee thereunder that, in accordance with GAAP,
would appear on a balance sheet of such lessee in respect of such Capital Lease
or otherwise be disclosed in a note to such balance sheet.

     "Collateral" means any and all personal property of Borrower which is
assigned or hereafter is assigned to Bank as security or in which Bank now has
or hereafter acquires a security interest hereunder (including, without
limitation, the Accounts), or pursuant to the terms of the General Security
Agreement, the Intellectual Property Security Agreement or otherwise.

     "Contingent Obligation" means, as applied to any Person, any direct or
indirect liability, contingent or otherwise, of that Person with respect to any
indebtedness, lease, dividend, letter of credit or other obligation of another,
including, without limitation, any such obligation directly or indirectly
guaranteed, endorsed (otherwise than for collection or deposit in the ordinary
course of business), co-made or discounted or sold with recourse by that Person,
or in respect of which that Person is otherwise directly or indirectly liable,
including, without limitation, any such obligation for which that Person is in
effect liable through any agreement (contingent or otherwise) to purchase,
repurchase or otherwise acquire such obligation or any security therefor, or to
provide funds for the payment or discharge of such obligation (whether in the
form of loans, advances, capital stock purchases, capital contributions or
otherwise), or to maintain the solvency of the obligor of such obligation, or to
make payment for any products, materials or supplies or for any transportation,
services or lease regardless of the non-delivery or non-furnishing thereof, in
any such case if the purpose or intent of such agreement is to provide assurance
that such obligation will be paid or discharged, or that any agreements relating
thereto will be complied with, or that the holders of such obligation will be
protected (in whole or in part) against loss in respect thereof. The amount of
any Contingent Obligation of any Person shall be deemed to be an amount equal to
the maximum amount of such Person's liability with respect to the stated or
determinable amount of the primary obligation for which such Contingent
Obligation is incurred or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof (assuming such Person is required to
perform thereunder).

     "Event of Default" has the meaning set forth in Section 12.

     "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other Person as may be approved by the significant segment of the accounting
profession, which are applicable to the circumstances as of the date of
determination.

     "General Security Agreement" means that certain General Security Agreement
(Tangible and Intangible Personal Property) dated of even date herewith, made by
Borrower in favor of Bank.

     "Indebtedness" means, as to any Person, without duplication, (a) all
indebtedness of such Person for borrowed money, including, without limitation,
all of such indebtedness outstanding under this Loan Agreement and any of the
other Loan Documents, (b) all Capital Lease Obligations of such Person, (c) to
the extent of the outstanding indebtedness thereunder, other than in the
ordinary and normal course of business as it is now conducted, any obligation of
such Person representing an extension of credit to such Person, whether or not
for borrowed money, (d) any obligation of such Person

                                   Exhibit A
                                  Page 1 of 5

<PAGE>

for the deferred purchase price of Property or services (other than (i) trade or
other accounts payable in the ordinary course of business in accordance with
customary industry terms and (ii) deferred franchise fees). (e) all Contingent
Obligations, (f) any obligation of such Person of the nature described in
clauses (a), (b), (c), (d) or (e) above, that is secured by a Lien on assets of
such Person and which is non-recourse to the credit of such Person, but Only to
the extent of the fair market value of the assets so subject to the Lien, (g)
obligations of such Person arising under acceptance facilities or under
facilities for the discount of accounts receivable of such Person, (h) any
obligation of such Person to reimburse the issuer of any letter of credit issued
for the account of such Person upon which a draw has been made, and (i) any
lease having the effect of indebtedness, whether or not the same shall be
treated as such on the balance sheet of Borrower under GAAP.

     "Lien" means any mortgage, pledge, security interest, lien or other charge
or encumbrance, including the lien or retained security title of a conditional
vendor, upon or with respect to any property or assets.

     "Loan Documents" means this Loan Agreement, the General Security Agreement
and that certain Agreement to Provide Insurance (Real or Personal Property)
dated of even date herewith, each as executed by Borrower in favor of Bank,
together with all other documents entered into or delivered pursuant to any of
the foregoing, in each case as originally executed or as the same may from time
to time be modified, amended, supplemented or restated.

     "Loans" means individually and collectively, the Equipment Advance and the
SVB Advance advanced pursuant to Section 1.

     "Material Adverse Effect" means any set of circumstances or events which
(a) has or could reasonably be expected to have any material adverse effect upon
the validity or enforceability of any material provision of any Loan Document,
(b) is or could reasonably be expected to be material and adverse to the
condition (financial or otherwise) or business operations of Borrower, (c)
materially impairs or could reasonably be expected to materially impair the
ability of Borrower, to perform its material Obligations, (d) materially impairs
or could reasonably be expected to materially impair the value or priority of
Bank's security interest in any Collateral or (e) materially impairs or could
reasonably be expected to materially impair the ability of Bank to enforce any
of its legal remedies pursuant to the Loan Documents.

     "Maturity Date" has the meaning set forth in Section 1.

     "Permitted Indebtedness" means the following:

          (1) indebtedness of Borrower or Indebtedness and Contingent
     Obligations of its Subsidiaries in favor of Bank arising under this Loan
     Agreement and the other Loan Documents;

          (2) the existing Indebtedness and Contingent Obligations disclosed on
     Schedule 1 attached hereto and incorporated herein by this reference;
     provided that the principal amount thereof is not increased and the terms
     thereof are not modified to impose more burdensome terms upon Borrower or
     any of its Subsidiaries;

          (3) the Subordinated Debt;

          (4) extensions, renewals or refinancings of Indebtedness permitted
     under this Loan Agreement, other than clause (3) immediately above;

          (5) accrued dividends on the preferred stock of Borrower;

          (6) interest rate and currency hedging agreements;

          (7) guaranties of any Subsidiary's suppliers in connection with the
     purchase of supplies in the ordinary course of business;

          (8) guaranties of lease obligations incurred in the ordinary course of
     business and to the extent otherwise permitted hereunder;

                                   Exhibit A
                                  Page 2 of 5

<PAGE>

          (9)  Contingent Obligations constituting Permitted Liens; and

          (10) the indebtedness referred to in clause (3)(a) of the definition
     of Permitted Liens.

     "Permitted Liens" means the following:

          (1)  liens and security interests existing as of this date and
disclosed in Schedule 2 attached hereto and incorporated herein by this
reference;

          (2)  liens for taxes, fees, assessments or other governmental charges
or levies, either not delinquent or being contested in good faith by appropriate
proceedings;

          (3)  liens and security interests (a) upon or in any equipment
acquired or held by Borrower to secure the purchase price of such equipment or
indebtedness incurred solely for the purpose of financing the acquisition of
such equipment and in an amount not greater than the purchase price thereof or
(b) existing on such equipment at the time of its acquisition, provided that the
lien and security interest is confined solely to the properly so acquired and
improvements thereon, and the proceeds of such equipment;

          (4)  liens consisting of leases or subleases and licenses and
sublicenses granted to others in the ordinary course of Borrower's business not.
interfering in any material respect with the business of Borrower and any
interest or title of a lessor or licensor under any lease or license, as
applicable;

          (5)  liens securing claims or demands, of materialmen, mechanics,
carriers, warehousemen, landlords and other like persons or entities imposed
without action of such parties, provided that the payment thereof is not yet
required;

          (6)  liens incurred or deposits made in the ordinary course of
Borrower's business in connection with worker's compensation, unemployment
insurance, social security and other like laws;

          (7)  liens arising from judgments, decrees or attachments in
circumstances not constituting an Event of Default;

          (8)  easements, reservations, rights-of-way, restrictions, minor
defects or irregularities in title and other similar charges or encumbrances
affecting real property not interfering in any material respect with the
ordinary conduct of Borrower's business;

          (9)  liens in favor of customs and revenue authorities arising as a
matter of law to secure payment of customs duties in connection with the
importation of goods;

          (10) liens that are not prior to Bank's security interest which
constitute rights of set-off of a customary nature;

          (11) any interest or title of a lessor in equipment subject to any
Capitalized Lease otherwise permitted hereunder; and

          (12) any liens arising from the filing of any financing statements
relating to true leases otherwise permitted hereunder.

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

                                   Exhibit A
                                  Page 3 of 5

<PAGE>

     "Property" means any interest in any kind of property or asset, whether
real, personal or mixed, whether tangible or intangible.

                                   Exhibit A
                                  Page 4 of 5

<PAGE>

                            Schedule 1 to Exhibit A

                        SPECIFIC PERMITTED INDEBTEDNESS

                            Schedule 1 to Exhibit A
                                  Page 1 of 1

<PAGE>

                            Schedule 2 to Exhibit A

                            SPECIFIC PERMITTED LIENS

                            Schedule 2 to Exhibit A
                                  Page 1 of 1

<PAGE>

                                   Exhibit B

                            COMPLIANCE CERTIFICATE

The consolidated financial statements dated as of _______________ of CrossRoute
Software, Inc. a California corporation ("Borrower") attached hereto and
submitted to Imperial Bank ("Bank") pursuant to that certain Loan Agreement
dated as of October 6, 1997, entered into between Borrower and Bank (the "Loan
Agreement"), are in compliance with all financial covenants (unless otherwise
noted below) as specified in Section 10 therein, as follows:

     Covenant:                                          Actual:

     A.  Minimum Tangible Net Worth of:
         -----------------------------                 ----------------

         $1,000,000.00

     B.  Minimum Quick Ratio:
         -------------------                           -----------------

          1.25:1.00

Exceptions: (if none, so state):

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

The undersigned authorized officer of Borrower hereby certifies that Borrower is
in complete compliance with the terms and conditions of the Loan Agreement for
the period ending _________, ___, and as of the date of this Compliance

Certificate the representations and warranties stated therein are true, accurate
and complete as of the date hereof (except as to those representations and
warranties which specifically reference a particular date and except as noted
above).

The undersigned further certifies that s/he knows of no pending conditions which
may cause an Event of Default (as defined in the Loan Agreement) to exist in the
next thirty (30) days. The required support documents for this certification are
attached and prepared in accordance with GAAP consistently applied.

Date: October 6, 1977                      CrossRoute Software, Inc.,
                                           a California corporation

                                           By:
                                              --------------------------------
                                                  Bruce Hausmann
                                                  Controller

                                   Exhibit B
                                  Page 1 of 2

<PAGE>

                      AMENDED AND RESTATED LOAN AGREEMENT

     THIS AMENDED AND RESTATED LOAN AGREEMENT is entered into as of September 8,
1998 (this "Restated Loan Agreement") between CROSSROUTE SOFTWARE, INC., a
California corporation (herein called "Borrower"), and IMPERIAL BANK (herein
called "Bank"). This Restated Loan Agreement amends, restates and supersedes in
its entirety the Original Loan Agreement (as hereinafter defined).

                                    RECITALS

     A.  Borrower and Bank entered into that certain Loan Agreement dated as of
October 6, 1997 (the "Original Loan Agreement"), pursuant to which Bank agreed
to extend and make loans available to Borrower under the Facility-A Commitment
(as hereinafter defined).

     B.  Borrower and Bank desire to amend and restate the Loan Agreement in its
entirety to, among other things, modify certain financial covenants and
reporting requirements under the Facility-A Commitment and to extend and make
available to Borrower additional advances of credit, all as more fully set forth
herein.

     C.  Bank has agreed to make and maintain the credit facilities described in
this Restated Loan Agreement, but only upon the terms and subject to the
conditions hereinafter set forth and in reliance on the representations and
warranties set forth herein.

                                   AGREEMENT

     NOW, THEREFORE, in Consideration of the foregoing recitals and the mutual
covenants hereinafter set forth, and intending to be legally bound, Borrower and
Bank hereby agree as follows:

     1.   Commitments.

          A.  Facility-A Commitment. Subject to all the terms and conditions of
this Restated Loan Agreement and prior to the termination of its commitment as
hereinafter provided, Bank hereby agrees to make loans (each a "Facility-A
Loan") to Borrower in such amounts as Borrower shall request pursuant to this
Section 1.A. at any time from the date hereof through October 5, 1998 (the
"Facility-A Availability End Date"), in an aggregate principal amount not to
exceed $750,000.00 (the "Facility-A Commitment"). If at any time or for any
reason, the outstanding principal amount of the Facility-A Loan Account (as
hereinafter defined) is greater than the Facility-A Commitment, Borrower shall
immediately pay to Bank, in cash, the amount of such excess. Any commitment of
Bank, pursuant to the terms of this Restated Loan Agreement, to make Facility-A
Loans shall expire on the Facility-A Availability End Date, subject to Bank's
right to renew said commitment in its sole and absolute discretion at Borrower's
request. Any such renewal of said commitment shall not be binding upon Bank
unless it is in writing and signed by an officer of Bank. Facility-A Loans that
are repaid by Borrower may not be reborrowed. Borrower promises to pay to Bank
the outstanding unpaid principal balance (and all accrued unpaid interest
thereon) of the Facility-A Loan Account on or before October 5, 2001 ("Facility-
A Maturity Date").

               (1)  Facility-A Loans. Facility-A Loans may only be used to
purchase or reimburse the cost of acquiring equipment purchased by Borrower
after April 1, 1997 or (b) purchase or reimburse the cost of acquiring software
or furniture purchased by Borrower. The amount of each Facility-A Loan made by
Bank to Borrower hereunder shall be debited to the loan ledger account of
Borrower maintained by Bank for the Facility-A Commitment (herein called the
"Facility-A Loan Account") and Bank shall credit the Facility-A Loan Account
with all loan repayments in respect thereof made by Borrower. When Borrower
desires to obtain a Facility-A Loan, Borrower shall notify Bank (which notice
shall be signed by an officer of Borrower and shall be

                                      1.
<PAGE>

irrevocable) in accordance with Section 2 hereof, to be received no later than
3:00 p.m. Pacific time one (1) Banking Day before the day on which the Loan is
to be made. When Borrower desires to obtain a Facility-A Loan to purchase
equipment, software or furniture, the notice shall be signed by an officer of
Borrower and include a copy of the invoice for the equipment, software or
furniture to be financed. Facility-A Loans for equipment will be limited to one
hundred percent (100%) of the invoice amount for such equipment approved from
time to time by Bank, less any taxes, shipping and freight charges or discounts,
warranty charges, installation expenses and similar soft costs. Facility-A Loans
for software and furniture will be limited to: (a) one hundred percent of the
invoice amount for such software and furniture approved from time to time by
Bank, less any taxes, shipping and freight charges or discounts, warranty
charges, installation expenses and similar soft costs and (b) the maximum
aggregate total amount of $200,000.00.

                    (a) SVB Advance. Subject to the availability of the
Facility-A Commitment and in reliance on the representations and warranties of
Borrower set forth herein, in order to repay all existing loans and related
indebtedness ("SVB Loans") owed by Borrower to Silicon Valley Bank ("SVB"), Bank
hereby agrees to make one Facility-A Loan to Borrower in an aggregate principal
amount not to exceed $250,000.00 (the "SVB Advance"); provided, however, that
the outstanding amount under the SVB Advance shall be deemed to constitute a
Facility-A Loan for the purpose of calculating the availability under the
Facility-A Commitment.

                    (b) Limitations on Advance of any Facility-A Loan.
Notwithstanding any of the foregoing provisions contained in this Section 1.A.
prior to any advance of a Facility-A Loan, except for the initial advance of a
Facility-A Loan to repay the SVB Loans, Bank shall have received satisfactory
evidence of the release of all existing liens against the Collateral to ensure
Bank's first priority lien in the Collateral.

               (2)  Interest Payments Prior to Facility-A Maturity Date.
Borrower further promises to pay to Bank from the date of the initial advance of
a Facility-A Loan (including the SVB Advance) through the Facility-A Maturity
Date, on or before the tenth (10th) day of each month, interest on the average
daily unpaid balance of the Facility-A Loan Account during the immediately
preceding month at a rate of interest equal to one percent (1%) per annum in
excess of the rate of interest which Bank has announced as its prime lending
rate (the "Prime Rate"), which shall vary concurrently with any change in the
Prime Rate. Interest shall be computed at the above rate on the basis of the
actual number of days during which the principal balance of the Facility-A Loan
Account is outstanding divided by 360, which shall for interest computation
purposes be considered one (1) year.

               (3)  Principal Repayment and Interest Payments on SVB Advance.
Borrower further promises to pay to Bank, on or before the tenth (10th day of
the month immediately following the date of the SVB Advance and on or before the
tenth (10th) day of each month thereafter through October 5, 1999, (a) the
outstanding principal balance of the SVB Advance in twenty-four (24) equal
monthly installments plus (b) interest on the average daily unpaid balance of
the SVB Advance accruing during the immediately preceding month at a rate of
interest and computed in accordance with Section 1.A.(2) hereof.

               (4)  Principal Repayment and Interest Payments Following
Availability End Date. Borrower further promises to pay to Bank, on or before
the tenth (10th) day of the month immediately following the Facility-A
Availability End Date and on or before the tenth (10th) day of each month
thereafter through the Facility-A Maturity Date, (a) the outstanding principal
balance of the Facility-A Loan Account (excluding the SVB Advance) on the
Facility-A Availability End Date in thirty-six (36) equal monthly installments
plus (b) interest on the average daily unpaid balance of the Facility-A Loan
Account (excluding the SVB Advance) accruing during the immediately preceding
month at the rate of interest and computed in accordance with Section 1.A.(2)
hereof.

          B.   Facility-B Commitment. Subject to all the terms and conditions of
this Restated Loan Agreement and prior to the termination of its commitment as
hereinafter provided, Bank hereby agrees to make

                                      2.
<PAGE>

loans (each a "Facility-B Loan") to Borrower, from time to time and in such
amounts as Borrower shall request pursuant to this Section 1.B., up to an
aggregate principal amount outstanding under the Facility-B Loan Account (as
hereinafter defined) not to exceed the least off (a) seventy-five percent
(75.0%) of Eligible Accounts (as the same may be adjusted from time to time as
provided for under Section 9.B. hereof, the "Borrowing Base") or (h) $750,000.00
(the "Facility-B Commitment"). If at any time or for any reason, the outstanding
principal amount of the Facility-B Loan Account is greater than the least of:
(x) the Borrowing Base or (y) the Facility-B Commitment, Borrower shall
immediately pay to Bank, in cash, the amount of such excess. Any commitment of
Bank, pursuant to the terms of this Restated Loan Agreement, to make Facility-B
Loans shall expire on the Facility-B Maturity Date (as hereinafter defined),
subject to Bank's right to renew said commitment in its sole and absolute
discretion at Borrower's request. Any such renewal of said commitment shall not
be binding upon Bank unless it is in writing and signed by an officer of Bank.
Provided that no Event of Default (as hereinafter defined) has occurred and is
continuing, all or any portion of the Facility-B Loans advanced by Bank that are
repaid by Borrower shall be available for reborrowing in accordance with the
terms hereof. Borrower promises to pay to Bank the entire outstanding unpaid
principal balance (and all accrued unpaid interest thereon) of the Facility-B
Loan Account on or before September 7, 1999 ("Facility-B Maturity Date").

               (1)  Facility-B Loans. Facility-B Loans may only be used to
support Borrower's working capital, needs. The amount of each Facility-B Loan
made by Bank to Borrower hereunder shall be debited to the loan ledger account
of Borrower maintained by Bank for the Facility-B Commitment (herein called the
"Facility-B Loan Account") and Bank shall credit the Facility-B Loan Account
with all loan repayments in respect thereof made by Borrower. When Borrower
desires to obtain a Facility-B Loan, Borrower shall notify Bank (which notice
shall be signed by an officer of Borrower and shall be irrevocable) in
accordance with Section 2 hereof, to be received no later than 3:00 p.m. Pacific
time one (1) Banking Day (as hereinafter defined) before the day on which the
Facility-B Loan is to be made.

                    (a) Letter of Credit Usage and Sublimit. Subject to the
availability of the Facility-B Commitment and in reliance on the representations
and warranties of Borrower set forth herein, at any time and from time to time
from the date hereof through the Banking Day immediately prior to the Facility-B
Maturity Date, Bank shall issue for the account of Borrower such standby and
commercial letters of credit ("Letters of Credit") as Borrower may request,
which request shall be made by delivering to Bank a duly executed letter of
credit application on Bank's standard form; provided, however, that the
outstanding and undrawn amounts under all such Letters of Credit (i) shall not
at any time exceed $200,000.00 and (ii) shall be deemed to constitute Facility-B
Loans for the purpose of calculating availability under the Facility-B
Commitment. Unless Borrower shall have deposited with Bank cash collateral in an
amount sufficient to cover all undrawn amounts under each such Letter of Credit
and Bank shall have agreed in writing, no Letter of Credit shall have an
expiration date that is later than the Facility-B Maturity Date. All Letters of
Credit shall be in form and substance acceptable to Bank in its sole discretion
and shall be subject to the terms and conditions of Bank's form application and
letter of credit agreement. Borrower will pay any standard issuance and other
fees that Bank notifies Borrower will be charged for issuing and processing
Letters of Credit for Borrower.

               (2)  Interest Payments on Facility-B Loans. Borrower further
promises to pay to Bank from the date of the advance of the initial Facility-B
Loan through the Facility-B Maturity Date, on or before the tenth (10th) day of
each month, interest on the average daily unpaid balance of the Facility-B Loan
Account during the immediately preceding month at a rate of interest equal to
one-half of one percent (0.50%) per annum in excess of Prime Rate, which shall
vary concurrently with any change in the Prime Rate. Interest shall be computed
at the above rate on the basis of the actual number of days during which the
principal balance of the Facility-B Loan Account is outstanding divided by 360,
which shall for interest computation purposes be considered one (1) year.

               (3)  Limitation on Advance of any Facility-B Loan.
Notwithstanding any of the provisions contained in this Section 1.B. hereof,
prior to any advance of a Facility-B Loan, a representative of

                                      3.
<PAGE>

Bank shall have conducted an audit of Borrower's books and records relating to
the Collateral and made extracts therefrom, and arranged for verification of the
Accounts, directly with the account debtors or otherwise, all with results
satisfactory to Bank, the cost of such audit of which shall be at Borrower's
sole expense. Based on Bank's review of such audit, and prior to the advance of
a Facility-B Loan in accordance with the terms of this Section 1.B.(3), Bank may
adjust the Borrowing Base percentage, in its sole and reasonable discretion, as
provided for under Section 9.B. hereof.

          C.   Facility-C Commitment. Subject to all the terms and conditions of
this Restated Loan Agreement and prior to the termination of its commitment as
hereinafter provided, Bank hereby agrees to make loans (each a "Facility-C
Loan") to Borrower in such amounts as Borrower shall request pursuant to this
Section 1.C. at any time from the date hereof through September 7, 1999 (the
"Facility-C Availability End Date"), in an aggregate principal amount not to
exceed $750,000.00 (the "Facility-C Commitment"). If at any time or for any
reason, the outstanding principal amount of the Facility-C Loan Account (as
hereinafter defined) is greater than the Facility-C Commitment, Borrower shall
immediately pay to Bank, in cash, the amount of such excess. Any commitment of
Bank, pursuant to the terms of this Restated Loan Agreement, to make Facility-C
Loans shall expire on the Facility-C Availability End Date, subject to Bank's
right to renew said commitment in its sole and absolute discretion at Borrower's
request. Any such renewal of said commitment shall not be bidding upon Bank
unless it is in writing and signed by an officer of Bank. Facility-C Loans that
are repaid by Borrower may not be reborrowed. Borrower promises to pay to Bank
the outstanding unpaid principal balance (and all accrued unpaid interest
thereon) of the Facility-C Loan Account on or before September 7, 2002
("Facility-C Maturity Date").

               (1)  Facility-C Loans. Facility-C Loans may only be used to
purchase or reimburse the cost of acquiring equipment and software purchased by
Borrower after January 1, 1998. The amount of each Facility-C Loan made by Bank
to Borrower hereunder shall be debited to the loan ledger account of Borrower
maintained by Bank for the Facility-C Commitment (herein called the "Facility-C
Loan Account") and Bank shall credit the Facility-C Loan Account with all loan
repayments in respect thereof made by Borrower. When Borrower desires to obtain
a Facility-C Loan, Borrower shall notify Bank (which notice shall be signed by
an officer of Borrower and shall be irrevocable) in accordance with Section 2
hereof, to be received no later than 3:00 p.m. Pacific time one (1) Banking Day
before the day on which the Facility-C Loan is to be made. The notice shall be
signed by an officer of Borrower and include a copy of the invoice for the
equipment or software to be financed. Equipment Loans for equipment will be
limited to one hundred percent 100.00%) of the invoice amount for such
equipment, approved from time to time by Bank, less any taxes, shipping and
freight charges or discounts, warranty charges, installation expenses and other
similar soft costs. Facility-C Loans for software will be limited to: (a) one
hundred percent (100.00%) of the invoice amount for such software, approved from
time to time by Bank, less any taxes, shipping and freight charges or discounts,
warranty charges, installation expenses and other similar soft costs and (b) the
maximum aggregate total amount of $350,000.00.

               (2)  Interest Payments Prior to Facility-C Maturity Date.
Borrower further promises to pay to Bank from the date of the advance of the
initial Facility-C Loan through the Facility-C Maturity Date, on or before the
tenth (10') day of each month, interest on the average daily unpaid balance of
the Facility-C Loan Account during the immediately preceding month at a rate of
interest equal to three quarters of one percent (0.75%) per annum in excess of
the Prime Rate, which shall vary concurrently with any change in the Prime Rate.
Interest shall be computed at the above rate on the basis of the actual number
of days during which the principal balance of the Facility-C Loan Account is
outstanding divided by 360, which shall for interest computation purposes be
considered one (1) year.

               (3)  Principal Payments Following Facility-C Availability End
Date. Borrower further promises to pay to Bank, on or before the tenth (10th)
day of the month immediately following the Facility-C Availability End Date and
on or before the tenth (10th) day of each month thereafter through the Facility-
C Maturity Date, (a) the outstanding principal balance of the Facility-C Loan
Account on the Facility-C Availability End Date in thirty-six (36) equal monthly
installments plus (b) interest on the average daily unpaid

                                      4.
<PAGE>

balance of the Facility-C Loan Account accruing during the immediately preceding
month at the rate of interest and computed in accordance with Section 1.C.(2)
hereof.

     2.   Loan Requests. Requests for Loans hereunder shall be in writing duly
executed by Borrower in a form satisfactory to Bank and shall contain a
certification setting forth the matters referred to in Section 1, which shall
disclose that Borrower is entitled to the amount and type of Loan being
requested. Bank is hereby authorized to charge Borrower's deposit account with
Bank for all sums due Bank under this Restated Loan Agreement.

     3.   Delivery of Payments. Payment to Bank of all amounts due hereunder
shall be made at its Santa Clara Valley Regional office, or at such other place
as may be designated in writing by Bank from time to time. If any payment date
fall on a day that is not a day that Bank is open for the transaction of
business ("Banking Day"), the payment due date shall be extended to the next
Banking Day.

     4.   Late Charge. If any interest payment, principal payment or principal
balance payment required hereunder is not received by Bank on or before ten (10)
days from the date in which such payment becomes due, Borrower shall pay to
Bank, a late charge equal to the lesser of (a) five percent (5.0%) of the amount
of such unpaid payment, in addition to said unpaid payment or (b) the maximum
amount permitted to be charged by applicable law, until remitted to Bank;
provided; however, nothing contained in this Section 4, shall be construed as
any obligation on the part of Bank to accept payment of any past due payment or
less than the total unpaid principal balance of the applicable Loan Account
following the Facility-A Maturity Date, the Facility-B Maturity Date and/or the
Facility-C Maturity Date, as applicable. All payments shall be applied first to
any late charges due hereunder, next to accrued interest then payable and the
remainder, if any, to reduce any unpaid principal due under the applicable Loan
Account.

     5.    Default Interest. From and after the Facility-A Maturity Date, the
Facility-B Maturity Date and/or the Facility-C Maturity Date, as applicable, or
such earlier date as all sums owing under any Loan Account becomes due and
payable by acceleration or otherwise, or upon the occurrence of an Event of
Default, at the option of Bank all sums owing under the applicable Loan Account
shall bear interest until paid in full at a rate equal to the lesser of (a) five
percent (5.0%) per annum in excess of the then applicable interest rate provided
for in Sections 1.A.(2), 1.B.(2) and 1.C.(2) hereof or (b) the maximum amount
permitted to be charged by applicable law, until all obligations hereunder are
repaid in full or the Event of Default is waived or cured to the satisfaction of
Bank, as applicable.

     6.   Definitions. As used in this Restated Loan Agreement and unless
otherwise defined herein, all initially capitalized terms shall have the
meanings set forth on Exhibit A attached hereto and incorporated herein by this
reference.

     7.   Representations and Warranties. Borrower represents and warrants to
Bank: (a) That Borrower is a corporation, duly organized and existing in the
State of its incorporation and the execution, delivery and performance of each
of the Loan Documents are within Borrower's corporate powers, have been duly
authorized and are not in conflict with law or the terms of any charter, by-law
or other incorporation papers, or of any indenture, agreement or undertaking to
which Borrower is a party or by which Borrower is bound or affected; (b)
Borrower is, and at the time the Collateral becomes subject to Bank's security
interest will be, the true and lawful owner of and has, and at the time the
Collateral becomes subject to Bank's security interest will have, good and clear
title to the Collateral, subject only to Bank's rights therein and to Permitted
Liens; (c) Each Account is, and at the time the Account comes into existence
will be, a true and correct statement of a bona fide indebtedness incurred by
the debtor named therein in the amount of the Account for either merchandise
sold Or delivered (or being held subject to Borrower's delivery instructions)
to, or services rendered, performed and accepted by, the account debtor; (d)
That there are and will be no defenses, counterclaims, or setoffs which may be
asserted against the Accounts from time to time represented by Borrower to be
Eligible Accounts, except as permitted in the

                                      5.
<PAGE>

definition thereof; (e) Any and all financial information, including information
relating to the Collateral, submitted by Borrower to Bank, whether previously or
in the future, is and will be true and correct; (f) There is no litigation or
other proceeding pending or threatened against or affecting Borrower, and
Borrower is not in default with respect to any order, writ, injunction, decree
or demand of any court or other governmental or regulatory authority; (g) (i)
The consolidated balance sheets of Borrower dated as of May 31, 1998, and the
related consolidated profit and loss statements for the fiscal year then ended,
copies of which have heretofore been delivered to Bank by  Borrower, and all
other statements and data submitted in writing by Borrower to Bank in connection
with Borrower's request for credit are true and correct, and said balance sheet
and profit and loss statement accurately present the financial condition of
Borrower as of the date thereof and the results of the operations of Borrower
for the period covered thereby, and have been prepared in accordance with GAAP,
(ii) since such date, there have been no material adverse changes in the
financial condition of Borrower, and (iii) Borrower has no knowledge of any
liabilities, contingent or otherwise, which are not reflected in said balance
sheet, and Borrower has not entered into any special commitments or substantial
contracts which are not reflected in said balance sheet, other than in the
ordinary and normal course of its business, which may have a Material Adverse
Effect upon its financial condition, operations or business as now conducted;
(h) Borrower has no liability for any delinquent local, state or federal taxes,
and, if Borrower has contracted with any government agency, it has no liability
for renegotiation of profits; and (i) Borrower, as of the date hereof, possesses
all necessary Trademarks, trade names, Copyrights, Patents, patent rights, and
licenses to conduct its business as now operated, without any known conflict
with valid Trademarks, trade names, Copyrights, Patents, patent rights and
license rights of others; and 0) Borrower and its Subsidiaries (as hereinafter
defined) have reviewed the areas within their operations and business which
could be adversely affected by, and have developed or are developing a program
to address on a timely basis, the Year 2000 Problem and have made related
appropriate inquiry of material suppliers and vendors, and based on such review
and program, the Year 2000 Problem will not have a Material Adverse Effect upon
its financial condition, operations or business as now conducted.

     8.   Negative Covenants. Borrower agrees that so long as any loans,
obligations or liabilities remain outstanding or unpaid to Bank or the
commitment of Bank hereunder is in effect, neither Borrower, nor any of its
subsidiaries ("Subsidiaries") will, without the prior written consent of Bank,
which consent shall not be unreasonably withheld:

          A.   Make any substantial change in the character of its business as
now conducted;

          B.   Create, incur, assume or permit to exist any Indebtedness other
than loans from Bank except obligations now existing as shown in the financial
statements referenced in Section 7.(g)(i), excluding those being refinanced by
Bank, Subordinated Debt and Permitted Indebtedness;

          C.   Create, incur, assume or permit to exist any mortgage, pledge,
encumbrance, lien or charge of any kind (including the charge upon property at
any time purchased or acquired under conditional sale or other title retention
agreement) upon any asset now owned or hereafter acquired by it, other than
Permitted Liens and liens in favor of Bank;

          D.   Sell, dispose of or grant a security interest in any of the
Collateral other than to Bank (other than the disposing of such Collateral in
the ordinary and normal course of its business as now conducted or other assets
which are obsolete or otherwise considered surplus), or execute any financing
statements covering the Collateral in favor of any secured party or Person other
than Bank;

          E.   Sell, transfer, assign, mortgage, pledge, license, lease, grant a
security interest in, or otherwise encumber any of its Intellectual Property,
other than licenses or leases of its intellectually property granted in the
ordinary and normal course of its business;

                                      6.
<PAGE>

          F.   Make any loans or advances to any Person or other entity other
than in the ordinary and normal course of its business as now conducted
(provided that such loans or advances are not made to any Person or entity that
is controlled by or under common control with Borrower). Notwithstanding the
foregoing provision, Borrower shall be permitted to accept full recourse
promissory notes from its employees in payment for its capital stock purchased
by such employees;

          G.   (1) Purchase or otherwise acquire all or substantially all of the
assets or business of any Person or other entity; or (2) liquidate, dissolve,
merge or consolidate, or commence any proceedings therefore; or (3) except in
the ordinary and normal course of its business as now conducted, sell
(including, without limitation, the selling of any property or other asset
accompanied by the leasing back of the same) any assets including any fixed
assets, any property, or other assets necessary for the continuance of its
business as now conducted. Notwithstanding the foregoing, upon the consent of
Bank, which consent shall not be unreasonably withheld, Borrower may proceed
with any acquisition of up to $500,000.00, (a) so long as no Event of Default
has occurred and is continuing or would exist after giving effect to such
transaction; (b) Borrower is the surviving corporation and (c) prior to
consummating such transaction, Borrower executes and delivers to Bank all such
additional agreements, documents and instruments as Bank may require in order to
affirm, effectuate or further assure its continuing, first priority lien in the
Collateral after giving effect to such transaction; and

          H.   Declare or pay any dividend or make any other distribution on any
of its capital stock now outstanding or hereafter issued or purchase, redeem or
retire any of such stock other than in dividends or distributions payable in
Borrower's or any such Subsidiary's capital stock, except for the repurchase of
Borrower's capital stock from officers, directors, employees or consultants of
Borrower upon termination of their employment with or rendering of service to
Borrower.

     9.   Affirmative Covenants. Borrower affirmatively covenants that so long
as any loans, obligations or liabilities remain outstanding or unpaid to Bank or
the commitment of Bank hereunder is in effect, it will:

          A.   Furnish Bank from time to time such financial statements and
information as Bank may reasonably request and inform Bank immediately upon the
occurrence of a material adverse change therein;

          B.   Notwithstanding the provisions contained in Section l.A.(3)
hereof, permit representatives of Bank to conduct an audit of Borrower's books
and records relating to the Collateral and make extracts therefrom, with results
satisfactory to Bank, provided that Bank shall use its best efforts to not
interfere with the conduct of Borrower's business, and to the extent possible to
arrange for verification of the Accounts directly with the account debtors
obligated thereon or otherwise, all under reasonable procedures acceptable to
Bank and at Borrower's sole expense; provided further that, prior to an Event of
Default, Borrower shall not be responsible for the expense of more than one (1)
such audit, in any fiscal year the cost of such audit of which shall not exceed
$1,500.00. Borrower hereby acknowledges and agrees that upon completion of any
such audit, including any such audit conducted in accordance with the provisions
of Section 1.A.(3) hereof, Bank shall have the right to adjust the Borrowing
Base percentage, in its sole and reasonable discretion, based on its review of
the results of such Collateral audit;

          C.   Promptly notify Bank of any attachment or other legal process
levied against any of the Collateral and any information received by Borrower
relative to the Collateral, including the Accounts, the account debtors or other
Persons obligated in connection therewith, which may in any way affect the value
of the Collateral or the rights and remedies of Bank in respect thereto;

          D.   Notwithstanding the provisions of Section 14 hereof, reimburse
Bank upon demand for any and all legal costs, including reasonable attorneys'
fees, and other expenses incurred in (1) collecting any sums payable by Borrower
under any Loan Account or any other obligation secured hereby, (2) enforcing any

                                      7.
<PAGE>

term or provision of this Restated Loan Agreement or otherwise or (3) the
checking, handling and collection of the Collateral and the preparation and
enforcement of any agreement relating thereto in connection with the occurrence
and continuance of an Event of Default;

          E.   Notify Bank of each location and of each office of Borrower at
which records of Borrower relating to the Accounts are kept;

          F.   Provide, maintain and deliver to Bank policies insuring the
Collateral against loss or damage by such risks and in such amounts, forms and
companies as Bank may require (to the extent customarily maintained by
businesses similar to Borrower) and with loss payable to Bank, and, in the event
Bank takes possession of the Collateral, the insurance policy or policies and
any unearned or returned premium thereon shall at the option of Bank become the
sole property of Bank, such policies and the proceeds of any other insurance
covering or in any way relating to the Collateral, whether now in existence or
hereafter obtained, being hereby assigned to Bank;

          G.   In the event the unpaid balance of any Loan Account shall exceed
the maximum amount of outstanding loans to which Borrower is entitled under
Section 1 hereof, as applicable, Borrower shall immediately pay to Bank for
credit to such Loan Account the amount of such excess;

          H.   Maintain and preserve all rights, franchises and other authority
adequate and necessary for the conduct of its business and maintain and preserve
its existence in the state of its incorporation and any other state(s) in which
Borrower conducts its business, except with respect to such other state(s), as
the failure to do so would not have a Material Adverse Effect;

          I.   Maintain public liability, property damage and workers
compensation insurance and insurance on all its insurable property against fire
and other hazards with responsible insurance carriers to the extent usually
maintained by similar businesses. Borrower shall provide evidence of property
insurance in amounts and types acceptable to Bank, and certificates naming Bank
as a loss payee;

          J.   Pay and discharge, before the same becomes delinquent and
penalties accrue thereon, all taxes, assessments and governmental charges upon
or against it or any of its properties, and any of its other liabilities at any
time existing, except to the extent and so long as: (1) the same are being
contested in good faith and by appropriate proceedings in such manner as not to
cause any Material Adverse Effect or the loss of any right of redemption from
any sale thereunder; and (2) it shall have set aside on its books reserves
(segregated to the extent required by GAAP);

          K.   Maintain a standard and modem system of accounting in accordance
with GAAP on a basis consistently maintained; permit Bank's representatives to
have access to, and to examine its properties, books and records at all
reasonable times; provided that Bank shall use its best efforts to not interfere
with the conduct of Borrower's business;

          L.   Maintain its properties, equipment and facilities in good order
and repair;

          M.   Maintain its primary banking and operating accounts with Bank or
Imperial Securities Corporation;

          N.   Prior to allowing any of Borrower's raw materials, work in
process, finished goods inventory and property, plant and equipment to be
transported to or be held at any contract manufacturer, warehouse or other
location (other than with bona fide distributors and retail accounts), Borrower
shall provide notice to Bank and Borrower shall have complied with such filing
and notice requirements as shall, in Bank's opinion, assure Borrower's and
Bank's priority in such property over creditors of such contract manufacturer,

                                      8.
<PAGE>

warehouseman or operator of such other location, including, without limitation,
making filings under California Commercial Code (S)2326, providing notice under
California Commercial Code (S)9114 and making filings and publications as
required under California Civil Code (S)3440.1 and (S)3440.5 All such filings,
notices and publications shall be in form and substance satisfactory to Bank;
and

          O.   Borrower shall perform all acts reasonably necessary to ensure
that Borrower and any business in which Borrower holds a substantial interest
becomes Year 2000 Compliant in a timely manner. Such acts shall include, without
limitation, performing a comprehensive review and assessment of all of
Borrower's systems and adopting a detailed plan, with an itemized budget, for
the remediation, monitoring and testing of such systems. If requested by Bank,
Borrower shall immediately deliver a statement to Bank summarizing the Year 2000
exposure, program or progress of Borrower and its Subsidiaries or other evidence
of Borrower's compliance with the terms of this Section, certified by an officer
of Borrower.

     10.  Financial Covenants and Information. All financial covenants and
financial information referenced herein shall be interpreted and prepared in
accordance with GAAP as used in the United States of America applied on a basis
consistent with previous years. Compliance with the financial covenants shall be
calculated and monitored on a monthly basis, except as shall be expressly stated
to the Contrary. Borrower affirmatively covenants that so long as any loans,
obligations or liabilities remain outstanding or unpaid to Bank or any
commitment is outstanding hereunder, it will, on a consolidated basis:

          A.   At all times, maintain a Minimum Tangible Net Worth of not less
than $3,000,000.00. As used herein, "Tangible Net Worth" shall mean all assets,
excluding any value for goodwill, Trademarks, Patents, Copyrights, organization
expense and other similar intangible items, less all liabilities (excluding
deferred revenue), plus Subordinated Debt;

          B.   At all times maintain a Minimum Term Liquidity Coverage Ratio of
not less than 1.50:1.00. As used herein "Term Liquidity Coverage Ratio" means
the sum of all unrestricted cash and cash equivalents plus the net availability
under the Facility-B Commitment divided by the total outstanding term
indebtedness owing by Borrower to Bank;

          C.   At all times maintain a Maximum Net Loss in any single month not
in excess of $1,000,000.00;

          D.   As soon as it is available, but not later than thirty (30) days
after and as of the end of each month, deliver to Bank an internally-prepared
financial statement consisting of a balance sheet and profit and loss statement,
in form satisfactory to Bank, and a Compliance Certificate in the form of
Exhibit B attached hereto and incorporated herein by this reference, certified
by an officer of Borrower;

          E.   As soon as it is available, but not later than one hundred twenty
(120) days after the end of Borrower's fiscal year, deliver to Bank unqualified
copies of Borrower's consolidated financial statements together with changes in
financial position audited by an independent certified public accountant
selected by Borrower but acceptable to Bank;

          F.   So long as any amounts remain outstanding and unpaid under the
Facility-B Loan Account, as soon as it is available, but not later than twenty
(20) days after and as of the end of each month, deliver to Bank, in such form
and detail as Bank may require, statements showing aging of the Accounts and
Borrower's accounts payable, together with a Borrowing Base Certificate in the
form of Exhibit C attached hereto and incorporated herein by this reference,
certified by an officer of Borrower. Notwithstanding the foregoing, as a
condition to any request for a Facility-B Loan, Borrower shall have delivered to
Bank said aging statements as well as a Borrowing Base Certificate covering the
most recent month then ended prior to the date of Borrower's request for an
advance for a Facility-B Loan;

                                      9.
<PAGE>

          G.   Upon the reasonable request of Bank, deliver to Bank current
budgets, sales projections, operating plans and other financial exhibits and
information in form and substance satisfactory to Bank; and

          H.   Upon any officer becoming aware, deliver immediately to Bank
written notice of any pending or threatened litigation claiming, or reasonably
likely to result in, damages against Borrower in an amount in excess of
$50,000.00.

     11.  Loan Fee. Borrower has paid, and Bank hereby acknowledges receipt of
(a) in respect of the Facility-B Commitment, a loan fee in the amount of Two
Thousand Five Hundred Dollars ($2,500.00) and (b) in respect of the Facility-C
Commitment,a loan fee in the amount of Two Thousand Five Hundred Dollars
($2,500.00).

     12.  Default and Remedies. The occurrence of any one or more of the
following shall constitute an "Event of Default": (a) Default be made in the
payment of any obligation by Borrower under any Loan Document; (b) Except for
any failure to pay as described in clause (a) above, breach be made in any
warranty, statement, promise, term or condition, contained herein or in any
other Loan Document and the same shall not have been cured to the satisfaction
of Bank within fifteen (15) days after Borrower shall have become aware thereof,
whether by written notice from Bank, or otherwise, (except that no cure period
shall exist for breaches in respect of Borrower's obligations under Section 8,
Subsections 9.A., 9.B., 9.C., 9.F., 9.G., 9.H., 9:I and 9.0., Subsections 10.A.,
10.B., 10.C., 10.D., 10.E. and 10.F. of this Restated Loan Agreement, and
Sections 1 and 2 of the Restated Security Agreement); (c) Any statement,
warranty or representation made by Borrower at any time proves false; (d)
Borrower defaults in the repayment of any principal of or the payment of any
interest on any indebtedness exceeding in the aggregate principal amount
$10,000.00 or breaches or violates any term or provision of any promissory note,
loan agreement, mortgage, indenture or other evidence of such indebtedness
pursuant to which amounts outstanding in the aggregate exceed $10,000.00 if the
effect of such breach is to permit the acceleration of such indebtedness,
whether or not waived by the note holder or obligee, and such failure shall not
have been cured to Bank's satisfaction within fifteen (15) calendar days after
Borrower shall become aware thereof, whether by written notice from Bank or
otherwise, or there has in fact been an acceleration of such indebtedness; (e)
Borrower becomes insolvent or makes an assignment for the benefit of creditors;
(0 Any proceeding be commenced by Borrower under any bankruptcy, reorganization,
arrangement, readjustment of debt or moratorium law or statute or, any such a
proceeding is commenced against Borrower and is not dismissed or stayed within
ten (10) days (provided that no Loans will be made prior to the dismissal of
such proceeding); (g) Any money judgment, writ of attachment, garnishment,
execution or other legal process be entered against Borrower or issued against
any material property of Borrower which is not fully covered by insurance
(subject to reasonable deductibles) and remains unvacated, unbonded, unstayed or
unpaid or undischarged for more than fifteen (15) days (whether or not
consecutive) or in any event later than five (5) days prior to the date of any
proposed sale thereunder, or if any assessment for taxes against Borrower other
than against any of its real property, is made by the Federal or State
government or any department thereof; or (h) Any change in Borrower's financial
condition or operations which has a Material Adverse Effect. Upon the occurrence
and during the continuance of an Event of Default, Bank may, at its option and
without demand first made and without notice to Borrower, do any one or more of
the following: (i) Terminate its obligation to make loans to Borrower as
provided in Section 1 hereof; (ii) Declare all sums secured hereby immediately
due and payable; (iii) Immediately take possession of the Collateral wherever it
may be found, using all legally permissible means to do so, or require Borrower
to assemble the Collateral and make it available to Bank at a place designated
by Bank which is reasonably convenient to Borrower and Bank, and Borrower waives
all claims for damages due to or arising from or connected with any such taking;
(iv) Proceed in the foreclosure of Bank's security interest and sale of the
Collateral in any manner permitted by law, or provided for herein; (v) Sell,
lease or otherwise dispose of the Collateral at public or private sale, with or
without having the Collateral at the place of sale, and upon terms and in such
manner as Bank may determine, and Bank may purchase same at any such sale; (vi)
Retain the Collateral in full satisfaction of the obligations secured thereby to
the extent permitted under the Uniform Commercial Code; or (vii) Exercise any
remedies of a secured party under the Uniform Commercial Code. Prior to any such

                                      10.
<PAGE>

disposition, Bank may, at its option, cause any of the Collateral to be repaired
or reconditioned in such manner and to such extent as Bank may deem advisable,
and any sums expended therefor by Bank shall be repaid by Borrower and secured
hereby. Bank shall have the right to enforce one or more remedies hereunder
successively or concurrently, and any such action shall not estop or prevent
Bank from pursuing any further remedy that it may have hereunder or by law. If a
sufficient sum is not realized from any such disposition of the Collateral to
pay all obligations secured by this Restated Loan Agreement, Borrower hereby
promises and agrees to pay Bank any deficiency.

     13.  Records Retention. Borrower authorizes Bank to destroy all invoices,
delivery receipts, reports and other types of documents and records submitted to
Bank in connection with the transactions contemplated herein at any time
subsequent to four (4) months from the time such items are delivered to Bank.

     14.  Attorneys' Fees. Borrower agrees to reimburse Bank up to $3,500.00 for
its reasonable attorneys' fees and expenses incurred in connection with the
negotiation, preparation, execution and delivery of the Loan Documents.

     15.  Governing Law; Judicial Reference.

          A.   Governing Law. This Agreement shall be deemed to have been made
in the State of California and the validity, construction, interpretation, and
enforcement hereof, and the rights of the parties hereto, shall be determined
under, governed by, and construed in accordance with the internal laws of the
State of California, without regard to principles of conflicts of law.

          B.   Judicial Reference.

               (1)  Other than (a) nonjudicial foreclosure and all matters in
connection therewith regarding security interests in real or personal property;
or (b) the appointment of a receiver, or the exercise of other provisional
remedies (any and all of which may be initiated pursuant to applicable law),
each controversy, dispute or claim between the parties arising out of or
relating to this Restated Loan Agreement or the other Loan Documents, which
controversy, dispute or claim is not settled in writing within thirty (30) days
after the "Claim Date" (defined as the date on which a party subject to this
Restated Loan Agreement gives written notice to all other parties that a
controversy, dispute or claim exists), will be settled by a reference proceeding
in California in accordance with the provisions of Section 638 et seq. of the
California Code of Civil Procedure, or their successor section ("CCP"), which
shall constitute the exclusive remedy for the settlement of any controversy,
dispute or claim concerning this Restated Loan Agreement, including whether such
controversy, dispute or claim is subject to the reference proceeding and except
as set forth above, the parties waive their rights to initiate any legal
proceedings against each other in any court or jurisdiction other than the
Superior Court in the County where the real property, if any, is located or
Santa Clara County, if none (the "Court"). The referee shall be a retired Judge
of the Court selected by mutual agreement of the parties, and if they cannot so
agree within forty-five (45) days after the Claim Date, the referee shall be
promptly selected by the Presiding Judge of the Court (or his/her
representative). The referee shall be appointed to sit as a temporary judge,
with all of the powers for a temporary judge, as authorized by law, and upon
selection should take and subscribe to the oath of office as provided for in
Rule 244 of the California Rules of Court (or any subsequently enacted Rule).
Each party shall have one peremptory challenge pursuant to CCP (S) 170.6. The
referee shall (x) be requested to set the matter for hearing within sixty (60)
days after the date of selection of the referee and (y) try any and all issues
of law or fact and report a statement of decision upon them, if possible, within
ninety (90) days of the Claim Date. Any decision rendered by the referee will be
final, binding and conclusive and judgement shall be entered pursuant to CCP (S)
644 in any court in the State of California having jurisdiction. Any party may
apply for a reference proceeding at any time after thirty (30) days following
notice to any other party of the nature of the controversy, dispute or claim, by
filing a petition for a hearing and/or trial. All discovery permitted by this
Restated Loan Agreement shall be completed no later than fifteen (15) days
before the first hearing date established by the referee. The

                                      11.
<PAGE>

referee may extend such period in the event of a party's refusal to provide
requested discovery for any reason whatsoever, including, without limitation,
legal objections raised to such discovery or unavailability of a witness due to
absence or illness. No party shall be entitled to "priority" in conducting
discovery. Depositions may be taken by either party upon seven (7) days written
notice, and request for production or inspection of documents shall be responded
to within ten (10) days after service. All disputes relating to discovery which
cannot be resolved by the parties shall be submitted to the referee whose
decision shall be final and binding upon the parties. Pending appointment of the
referee as provided herein, the Superior Court is empowered to issue temporary
and/or provisional remedies, as appropriate.

               (2)  Except as expressly set forth in this Restated Loan
Agreement, the referee shall determine the manner in which the reference
proceeding is conducted including the time and place of all hearings, the order
of presentation of evidence, and all other questions that arise with respect to
the course of the reference proceeding. All proceedings and hearings conducted
before the referee, except for trial, shall be conducted without a court
reporter except that when any party So requests, a court reporter will be used
at any hearing conducted before the referee. The party making such a request
shall have the obligation to arrange for and pay for the court reporter. The
costs of the court reporter at the trial shall be borne equally by the parties.

               (3)  The referee shall be required to determine all issues in
accordance with existing case law and the statutory laws of the State of
California. The rules of evidence applicable to proceedings at law in the State
of California will be applicable to the reference proceeding. The referee shall
be empowered to enter equitable as well as legal relief, to provide all
temporary and/or provisional remedies and to enter equitable orders that will be
binding upon the parties. The referee shall issue a single judgment at the close
of the reference proceeding that shall dispose of all of the claims of the
parties that are the subject of the reference. The parties hereto expressly
reserve the right to contest or appeal from the final judgment or any appealable
order or  appealable judgment entered by the referee. The parties hereto
expressly reserve the right to findings of fact, conclusions of laws, a written
statement of decision, and the right to move for a new trial or a different
judgment, which new trial, if granted, is also to be a reference proceeding
under this provision.

               (4)  In the event that the enabling legislation which provides
for appointment of a referee is repealed (and no successor statute is enacted),
any dispute between the parties that would otherwise be determined by the
reference procedure herein described will be resolved and determined by
arbitration. The arbitration will be conducted by a retired judge of the Court,
in accordance with the California Arbitration Act, (S) 1280 through (S) 1294.2
of the CCP as amended from time to time. The limitations with respect to
discovery as set forth hereinabove shall apply to any such arbitration
proceeding.

     16.  Miscellaneous Provisions.

          A.   Nothing herein shall in any way limit the effect of the
conditions set forth in any other security or other agreement executed by
Borrower, but each and every condition hereof shall be in addition thereto.

          B.   No failure or delay on the part of Bank, in the exercise of any
power, right or privilege hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise thereof.

          C.   All rights and remedies existing under this Restated Loan
Agreement or any other Loan Document are cumulative to, and not exclusive of,
any rights or remedies otherwise available.

          D.   All headings and captions in this Restated Loan Agreement and any
related documents are for convenience only and shall not have any substantive
effect.

                                      12.
<PAGE>

          E.   This Restated Loan Agreement is not intended to be, and shall not
be construed to create, a novation or accord and satisfaction, and, except as
otherwise provided herein, the Original Loan Agreement is amended and restated
in full by the terms of this Restated Loan Agreement and all obligations
outstanding under the Original Loan Agreement are governed by the terms of this
Restated Loan Agreement.

          F.   This Restated Loan Agreement may be executed in any number of
counterparts, each of which when so delivered shall be deemed an original, but
all such counterparts shall constitute but one and the same instrument. Each
such agreement shall become effective upon the execution of a counterpart hereof
or thereof by each of the parties hereto and telephonic notification that such
executed counterparts has been received by Borrower and Bank.

Bank:                                   Borrower:

Imperial Bank                           CrossRoute Software, Inc.,
                                        a California corporation

By:___________________________          By: /s/ Bruce Hausmann
                                           ---------------------------------
     Sunita R. Patel                         Bruce Hausmann
     Assistant Vice President                Vice President, Finance

LIST OF EXHIBITS AND SCHEDULES
------------------------------

EXHIBIT A: Definitions
 SCHEDULE 1 TO EXHIBIT A: List of Specific Permitted Indebtedness
 SCHEDULE 2 TO EXHIBIT A: List of Specific Permitted Liens

EXHIBIT B: Compliance Certificate

EXHIBIT C: Borrowing Base Certificate

                                      13.
<PAGE>

                                   Exhibit A

                                  DEFINITIONS

     "Accounts" means any right to payment for goods sold or leased, or to be
sold or to be leased, or for services rendered or to be rendered no matter how
evidenced, including accounts receivable, contract rights, chattel paper,
instruments, purchase orders, notes, drafts, acceptances, general intangibles
and other forms of obligations and receivables.

     "Approved Account" means the Account of any account debtor which is a
"Fortune 500" company and approved by Bank in its sole and reasonable
discretion.

     "Capital Lease" means, as to any Person, any lease of any Property by such
Person as lessee that is, or should be in accordance with Financing Accounting
Standards Board Statement No. 13, classified and accounted for as a "capital
lease" on the balance sheet of such Person prepared in accordance with GAAP.

     "Capital Lease Obligation" means, with respect to any Capital Lease, the
amount of the obligation of the lessee thereunder that, in accordance with GAAP,
would appear on a balance sheet of such lessee in respect of such Capital Lease
or otherwise be disclosed in a note to such balance sheet.

     "Collateral" means any and all personal property of Borrower which is
assigned or hereafter is assigned to Bank as security or in which Bank now has
or hereafter acquires a security interest hereunder (including, without
limitation, the Accounts), Or pursuant to the terms of the Restated Security
Agreement, the IP Security Agreement or otherwise.

     "Contingent Obligation" means, as applied to any Person, any direct or
indirect liability, contingent or otherwise, of that Person with respect to any
indebtedness, lease, dividend, letter of credit or other obligation of another,
including, without limitation, any such obligation directly or indirectly
guaranteed, endorsed (otherwise than for collection or deposit in the ordinary
course of business), co-made or discounted or sold with recourse by that Person,
or in respect of which that Person is otherwise directly or indirectly liable,
including, without limitation, any such obligation for which that Person is in
effect liable through any agreement (contingent or otherwise) to purchase,
repurchase or otherwise acquire such obligation or any security therefor, or to
provide funds for the payment or discharge of such obligation (whether in the
form of loans, advances, capital stock purchases, capital contributions or
otherwise), or to maintain the solvency of the obligor of such obligation, or to
make payment for any products, materials or supplies or for any transportation,
services or lease regardless of the non-delivery or non-furnishing thereof, in
any such case if the purpose or intent of such agreement is to provide assurance
that such obligation will be paid or discharged, or that any agreements relating
thereto will be complied with, or that the holders of such obligation will be
protected (in whole or in part) against loss in respect thereof. The amount of
any Contingent Obligation of any Person shall be deemed to be an amount equal to
the maximum amount of such Person's liability with respect to the stated or
determinable amount of the primary obligation for which such Contingent
Obligation is incurred or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof (assuming such Person is required to
perform thereunder).

     "Eligible Accounts" means such of Borrower's Accounts as Bank in its sole
reasonable discretion shall determine are eligible from time to time; provided,
however, that in no event shall Eligible Accounts include the following:

          (1)  all Accounts under which payment is not received within ninety
     (90) days from the applicable invoice date;

                                   Exhibit A
                                  Page 1 of 6
<PAGE>

          (2)  all Accounts against which the account debtor or any other Person
     obligated to make payment thereon asserts any defense, offset, counterclaim
     or other right to avoid or reduce the liability represented by the
     Accounts;

          (3)  any Accounts if the account debtor or any other Person liable in
     connection therewith is insolvent, subject to bankruptcy or receivership
     proceedings or has made an assignment for the benefit of creditors or whose
     credit standing is unacceptable to Bank and Bank has so notified Borrower;

          (4)  Accounts with respect to which the account debtor is an officer,
     director, shareholder, employee or Subsidiary;

          (5)  Accounts due from an account debtor if more than fifty percent
     (50%) of the aggregate amount of Accounts of such account debtor have at
     that time remained unpaid for more than ninety (90) days from the
     applicable invoice date;

          (6)  Accounts with respect to international transactions unless either
     (a) such Accounts are insured or covered by a letter of credit in a manner
     and form acceptable to the Bank or (b) Bank shall have otherwise permitted
     in writing in its sole and absolute direction;

          (7)  salesperson's accounts for promotional purposes;

          (8)  the amount by which the aggregate of all Accounts of an account
     debtor exceeds twenty-five percent (25.0%) of the total accounts receivable
     balance ("Concentration Limit"); provided, however, the Concentration Limit
     for an Approved Account shall be thirty percent (30.0%);

          (9)  Accounts where the account debtor is a seller to borrower, to the
     extent that a potential offset exists; and

          (10) Accounts where the account debtor is a federal governmental
     entity, federal agency or instrumentality thereof.

     "Event of Default" has the meaning set forth in Section 12.

     "Facility-A Maturity Date" has the meaning set forth in Section 1.A.

     "Facility-B Maturity Date" has the meaning set forth in Section 1.B.

     "Facility-C Maturity Date" has the meaning set forth in Section 1.C.

     "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other Person as may be approved by the significant segment of the accounting
profession, which are applicable to the circumstances as of the date of
determination.

     "Indebtedness" means, as to any Person, without duplication, (a)all
indebtedness of such Person for borrowed money, including, without limitation,
all of such indebtedness outstanding under this Restated Loan Agreement and any
of the other Loan Documents, (b) all Capital Lease Obligations of such Person,
(c) to the extent of the outstanding indebtedness thereunder, other than in the
ordinary and normal course of business as it is now conducted, any obligation of
such Person representing an extension of credit to such Person, whether or not

                                   Exhibit A
                                  Page 2 of 6
<PAGE>

for borrowed money, (d) any obligation of such Person for the deferred purchase
price of Property or services (other than (i) trade or other accounts payable in
the ordinary course of business in accordance with customary industry terms and
(ii) deferred franchise fees), (e) all Contingent Obligations, (f) any
obligation of such Person of the nature described in clauses (a), (b), (c), (d)
or (e) above, that is secured by a Lien on assets of such Person and which is
non-recourse to the credit of such Person, but only to the extent of the fair
market value of the assets so subject to the Lien, (g) obligations of such
Person arising under acceptance facilities or under facilities for the discount
of accounts receivable of such Person, (h) any obligation of such Person to
reimburse the issuer of any letter of credit issued for the account of such
Person upon which a draw has been made, and (i) any lease having the effect of
indebtedness, whether or not the same shall be treated as such on the balance
sheet of Borrower under GAAP.

     "IP Security Agreement" means that certain Collateral Assignment, Patent
Mortgage and Security  Agreement dated of even date herewith, made by Borrower
in favor of Bank.

     "Intellectual Property" means

          (1)  Any and all copyright, rights, copyright applications, copyright
     registrations and like protection in each work or authorship and derivative
     work thereof, whether published or unpublished and whether or not the same
     also constitutes a trade secret, now or hereafter existing, created,
     acquired or held (collectively, the "Copyrights");

          (2)  Any and all trade secrets, and any and all intellectual property
     rights in computer software and computer software products now Or hereafter
     existing, created, acquired or held;

          (3)  Any and all design rights which may be available to Borrower now
     or hereafter existing, created, acquired or held;

          (4)  Any patents, patent applications and like protections, including,
     without limitation, improvements, divisions, continuations, renewals,
     reissues, extensions and continuations-in-part of the same, including,
     without limitation, the patents and patent applications (collectively, the
     "Patents");

          (5)  Any trademark and servicemark rights, whether registered or not,
     applications, to register and registrations of the same and like
     protections, and the entire goodwill of the business of Borrower connected
     with and symbolized by such trademarks (collectively, the "Trademarks");

          (6)  Any and all claims for damages by way of past, present and future
     infringements of any of the rights included above, with the right, but not
     the obligation, to sue for and collect such damages for said use or
     infringement of the intellectual property rights identified above;

          (7)  Any licenses or other rights to use any of the Copyrights,
     Patents or Trademarks and all license fees and royalties arising from such
     use to the extent permitted by such license or rights;

          (8)  Any amendments, extensions, renewals and extensions of any of the
     Copyrights, Patents or Trademarks; and

          (9)  Any proceeds and products of the foregoing, including, without
     limitation, all payments under insurance or any indemnity or warranty
     payable in respect of any of the foregoing.

     "Lien" means any mortgage, pledge, security interest, lien or other charge
or encumbrance, including the lien or retained security title of a conditional
vendor, upon or with respect to any property or assets.

                                   Exhibit A
                                  Page 3 of 6
<PAGE>

     "Loan Account or Loan Accounts" means individually and collectively, the
Facility-A Loan Account, the Facility-B Loan Account and the Facility-C Loan
Account.

     "Loan Documents" means this Restated Loan Agreement, the Restated Security
Agreement, the IP Security Agreement and that certain Agreement to Provide
Insurance (`Real or Personal Property) dated of even date herewith, each as
executed by Borrower in favor of Bank, together with all other documents entered
into or delivered pursuant to any of the foregoing, in each case as originally
executed or as the same may from time to time be modified, amended, supplemented
or restated.

     "Loans" means individually and collectively, the Facility-A Loans, the
Facility-B Loans and the Facility-C Loans advanced pursuant to Section 1.

     "Material Adverse Effect" means any set of circumstances or events which
(a) has or could reasonably be expected to have any material adverse effect upon
the validity Or enforceability of any material provision of any Loan Document,
(b) is or could reasonably be expected to be material and adverse to the
condition (financial or otherwise) or business operations of Borrower, (c)
materially impairs or could reasonably be expected to materially impair the
ability of Borrower, to perform its material Obligations, (d) materially impairs
or could reasonably be expected to materially impair the value or priority of
Bank's security interest in any Collateral or (e) materially impairs or could
reasonably be expected to materially impair the ability of Bank to enforce any
of; its legal remedies pursuant to the Loan Documents.

     "Permitted Indebtedness" means the following:

          (1)  indebtedness of Borrower or Indebtedness and Contingent
     Obligations of its Subsidiaries in favor of Bank arising under this
     Restated Loan Agreement and the other Loan Documents;

          (2)  the existing Indebtedness and Contingent Obligations disclosed on
     Schedule 1 attached hereto and incorporated herein by this reference;
     provided that the principal amount thereof is not increased and the terms
     thereof are not modified to impose more burdensome terms upon Borrower or
     any of its Subsidiaries;

          (3)  the Subordinated Debt;

          (4)  extensions, renewals or refinancings of Indebtedness permitted
     under this Restated Loan Agreement, other than clause (3) immediately
     above;

          (5)  accrued dividends on the preferred stock of Borrower;

          (6)  interest rate and currency hedging agreements;

          (7)  guaranties of any Subsidiary's suppliers in connection with the
     purchase of supplies in the ordinary course of business;

          (8)  guaranties of lease obligations incurred in the ordinary course
     of business and to the extent otherwise permitted hereunder;

          (9)  Contingent Obligations constituting Permitted Liens; and

          (10) the indebtedness referred to in clause (3)(a) of the definition
     of Permitted Liens.

                                   Exhibit A
                                  Page 4 of 6
<PAGE>

     "Permitted Liens" means the following:

          (1)  liens and security interests existing as of this date and
     disclosed in Schedule 2 attached hereto and incorporated herein by this
     reference;

          (2)  liens for taxes, fees, assessments or other governmental charges
     or levies, either not delinquent or being contested in good faith by
     appropriate proceedings;

          (3)  liens and security interests (a) upon or in any equipment
     acquired or held by Borrower to secure the purchase price of such equipment
     or indebtedness incurred solely for the purpose of financing the
     acquisition of such equipment and in an amount not greater than the
     purchase price thereof or (b) existing on such equipment at the time of its
     acquisition, provided that the lien and security interest is confined
     solely to the property so acquired and improvements thereon, and the
     proceeds of such equipment;

          (4)  liens consisting of leases or Subleases and licenses and
     sublicenses granted to others in the ordinary course of Borrower's business
     not interfering in any material respect with the business of Borrower and
     any interest or title of a lessor or licensor under any lease or license,
     as applicable;

          (5)  liens securing claims or demands of materialmen, mechanics,
     carriers, warehousemen, landlords and other like persons or entities
     imposed without action of such parties, provided that the payment thereof
     is not yet required;

          (6)  liens incurred or deposits made in the ordinary course of
     Borrower's business in connection with worker's compensation, unemployment
     insurance, social security and other like laws;

          (7)  liens arising from judgments, decrees or attachments in
     circumstances not constituting an Event of Default;

          (8)  easements, reservations, rights-of-way, restrictions, minor
     defects or irregularities in title and other similar charges or
     encumbrances affecting real property not interfering in any material
     respect with the ordinary conduct of Borrower's business;

          (9)  liens in favor of customs and revenue authorities arising as a
     matter of law to secure payment of customs duties in connection with the
     importation of goods;

          (10) liens that are not prior to Bank's security interest which
     constitute rights of set-off of a customary nature;

          (11) any interest or title of a lessor in equipment subject to any
     Capitalized Lease otherwise permitted hereunder, and

          (12) any liens arising from the filing of any financing statements
     relating to true leases otherwise permitted hereunder.

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

                                   Exhibit A
                                  Page 5 of 6
<PAGE>

     "Property" means any interest in any kind of property or asset, whether
real, personal or mixed, whether tangible or intangible.

     "Restated Security Agreement" means that certain Amended and Restated
General Security Agreement dated of even date herewith, made by Borrower in
favor of Bank.

     "Subordinated Debt" means indebtedness of Borrower, the repayment of
principal of which is fully subordinated in time and right of payment to the
Loans, and has been approved in Bank's sole and absolute discretion and in
writing.

     "Year 2000 Compliant" means, in regard to Borrower or any Person, that all
software, hardware, firmware, equipment, goods or systems utilized by or
material to the business operations or financial condition of Borrower or such
Person, will properly perform date sensitive functions before, during and after
the year 2000.

     "Year 2000 Problem" means the risk that any computer applications used by
Borrower and its Subsidiaries may be unable to recognize and properly perform
date-sensitive functions involving certain dates prior to and any date on or
after December 31, 1999.
                                   Exhibit A
                                  Page 6 of 6
<PAGE>

                            Schedule 1 to Exhibit A

                        SPECIFIC PERMITTED INDEBTEDNESS

                           List or indicate "None".

                            Schedule 1 to Exhibit A
                                  Page 1 of 1
<PAGE>

                            Schedule 2 to Exhibit A

                           SPECIFIC PERMITTED LIENS

                            List or indicate "None"

                            Schedule 2 to Exhibit A
                                  Page 1 of 1
<PAGE>

                                   Exhibit B

                            COMPLIANCE CERTIFICATE

The consolidated financial statements dated as of __________________ of
CROSSROUTE SOFTWARE, INC., a California corporation ("Borrower") attached hereto
and submitted to IMPERIAL BANK ("Bank") pursuant to that certain Amended and
Restated Loan Agreement dated as of September 8, 1998, entered into between
Borrower and Bank (the "Restated Loan Agreement"), are in compliance with all
financial covenants (unless otherwise noted below) as specified in Section 10
therein, as follows:

--------------------------------------------------------------------------------
COVENANT:                                               ACTUAL:
--------------------------------------------------------------------------------
A.   Minimum Tangible Net Worth of:
     -----------------------------

     $3,000,000.00
--------------------------------------------------------------------------------
B.   Minimum Term Liquidity Coverage Ratio:
     -------------------------------------

     1.50:1.00

--------------------------------------------------------------------------------
C.   Maximum Net Loss:
     ----------------

     $1,000,000.00
--------------------------------------------------------------------------------

Exceptions: (if none, so state):

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

The undersigned authorized officer of Borrower hereby certifies that Borrower is
in complete compliance with the terms and conditions of the Restated Loan
Agreement for the period ending ________________, ______, and as of the date of
this Compliance Certificate the representations and warranties stated therein
are true, accurate and complete as of the date hereof (except as to those
representations and warranties which specifically reference a particular date
and except as noted above).

The undersigned further certifies that s/he knows of no pending conditions which
may cause an Event of Default (as defined in the Restated Loan Agreement) to
exist in the next thirty (30) days. The required support documents for this
certification are attached and prepared in accordance with GAAP consistently
applied.

Date:________________                   CROSSROUTE SOFTWARE, INC.,
                                        a California corporation

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________

                                   Exhibit B
                                  Page 1 of 1
<PAGE>

                                   Exhibit C

                          BORROWING BASE CERTIFICATE

                     (To be provided and attached by Bank)

                                   Exhibit C
<PAGE>

                  [LETTERHEAD OF IMPERIAL BANK APPEARS HERE]

November 18, 1998

Extricity Software, Inc.
555 Twin Dolphin Drive, Suite 600
Redwood Shores, CA 94065

Attention:  Bruce Hausmann
            Ken Ross

Re: Imperial Bank Loan No. 00720000111

Gentlemen:

With reference to the Loan Agreement dated October 6, 1997 and the Amended
and Restated Loan Agreement dated September 8, 1998 between Imperial Bank
("Bank") and Extricity Software, Inc. ("Borrower") in connection with the
above-referenced loan ("Loan"), and as amended from time to time, the Bank
and Borrower hereby modify the following numbered terms and conditions of
the Amended and Restated Loan Agreement (hereinafter referred to as the
"Loan Agreement"):

1.   Section C of Paragraph 10 of the Loan Agreement is deleted in its
     entirety and is replaced with the following:

     C.   Borrower to maintain a Maximum Net Loss in any single month not
          in excess of $1,500,000 beginning with the month ending October
          31, 1998 through the month ending June 30, 1999, thereafter
          maintain a Maximum Net Loss in any month not in excess of
          $1,000,000.

Except for the above-described modifications, the Agreement shall remain
unaltered and in full force and effect.

Please acknowledge your approval by signing and returning the original of
this letter to me.

Sincerely,

/s/ Sunita Patel
Sunita Patel
Assistant Vice President
Emerging Growth Industries
<PAGE>

Extricity Software, Inc.
November 18, 1998
Page 2 of 2
--------------------------------------------------------------------------------

Accepted and agreed to:

EXTRICITY SOFTWARE, INC.

By:    /s/ [ILLEGIBLE]^^
       -----------------------------

Title: Vice President, Finance
       -----------------------------

Date:  12/4/98
       -----------------------------
<PAGE>

                         [LETTERHEAD OF IMPERIAL BANK]

April 6, 1999

Extricity Software. Inc.
555 Twin Dolphin Drive, Suite 600
Redwood Shores, CA 94065

Attention:  Stephen Albertolle
            Eric Niiya

Re:  Imperial Bank Loan No. 00720000111

Gentlemen:

With reference to the Amended and Restated Loan Agreement dated September 8,
1998 between Imperial Bank ("Bank") and Extricity Software, Inc., formerly
Crossroute Software, Inc, ("Borrower") in connection with the above-referenced
loan ("Loan"). and as amended from time to time, the Bank and Borrower hereby
modify the following numbered terms and conditions of the Amended and Restated
Loan Agreement (hereinafter referred to as the "Loan Agreement"):

1.   Section A of Paragraph 10 of the Loan Agreement is deleted in its entirety
     and is replaced with the following:

     A.   At all times maintain a Minimum Tangible Net Worth of not less than
          $3,000,000, except for the period beginning with the month ending
          February 28, 1999 through the earlier of 1) the month ending June 30,
          1999 or 2) upon maintaining a Minimum Tangible Net Worth of not less
          than $3,000,000 during which time no further advances under Facility
          A, Facility B or Facility C will be made by Bank to Borrower. As used
          herein, "Tangible Net Forth" shall mean all assets, excluding any
          value for goodwill, Trademarks, Patents, Copyrights, organization
          expense and other similar intangible items, less all liabilities
          (excluding deferred revenue), plus Subordinated Debt;

Except for the above-described modifications, the Agreement shall remain
unaltered and in full force and effect.
<PAGE>

Extricity Software, Inc.
April 6, 1999
Page 2 of 2
--------------------------------------------------------------------------------

Please acknowledge your approval by signing and returning the original of this
letter to me.

Sincerely,

/s/ Sunita Patel

Sunita Patel
Assistant Vice President
Emerging Growth Industries

Accepted and agreed to:

EXTRICITY SOFTWARE, INC.

By:  /s/ Steve Albertolle
     --------------------

Title:  VP Finance and Administration and CFO
        -------------------------------------

Date:   April 7, 1999
        -------------
<PAGE>

April 6, 1999

Extricity Software, Inc.
555 Twin Dolphin Drive, Suite 600
Redwood Shores, CA 94065

Attention: Stephen Albertolle
           Eric Niiya

Re: Imperial Bank Loan No. 00720000111

Gentlemen:

With reference to the Amended and Restated Loan Agreement dated September 8,
1998 between Imperial Bank ("Bank") and Extricity Software, Inc., formerly
Crossroute Software, Inc, ("Borrower") in connection with the above-referenced
loan ("Loan"), and as amended from time to time, the Bank and Borrower hereby
modify the following numbered terms and conditions of the Amended and Restated
Loan Agreement (hereinafter referred to as the "Loan Agreement"):

1.   Section C of Paragraph 10 of the Loan Agreement is deleted in its entirety
     and is replaced with the following:

     C.   Borrower to maintain a Maximum Net Loss in any single month not in
          excess of $1,500,000, except for the month ending June 30, 1999, in
          which Borrower is to maintain a Maximum Net Loss not in excess of
          $1,650,000;

Except for the above-described modifications, the Agreement shall remain
unaltered and in full force and effect.

Please acknowledge your approval by signing and returning the original of this
letter to me.

Sincerely,

/s/ Sunita Patel

Sunita Patel
Assistant Vice President
Emerging Growth Division
<PAGE>

Extricity Software, Inc.
August 5, 1999
Page 2 of 2
--------------------------------------------------------------------------------

Accepted and agreed to:

EXTRICITY SOFTWARE, INC.

By:  /s/ Stephen Albertolle
     ----------------------

Title:  VP Finance and CFO
        ------------------

Date:   9-7-99
        ------
<PAGE>

                         [LETTERHEAD OF IMPERIAL BANK]

September 7, 1999

Stephen Albertolle
Extricity Software
555 Twin Dolphin Drive
Suite 600
Redwood Shores, CA 94065

Re: Loan # 00720000111/ 05 Note Number/ $750,000 Note Amount

Dear Steve:

Imperial Bank has approved an extension of your credit facility shown above as
evidenced by the Loan Agreement dated September 8, 1998, from its current
maturity of September 7, 1999 to December 7, 1999.

Except as modified and extended hereby, the existing documentation as amended
concerning your obligations remains in full force and effect.

Sincerely,

/s/ Sunita Patel

Sunita Patel
Vice President
Emerging Growth Industries Group

Acknowledged and accepted on September, 9, 1999.

By:
EXTRICITY SOFTWARE, INC.

/s/ Steve Albertolle
--------------------

Title:  VP Finance and CFO
        ------------------
<PAGE>

                         [LETTERHEAD OF IMPERIAL BANK]

April 27, 2000

Extricity Software, Inc.
555 Twin Dolphin Drive, Ste. 600
Redwood Shores, CA 94065

Attention:  Steven Albertolle
            Eric Niiya

Re:  Imperial Bank Loan No. 00720000111

Gentlemen:

With reference to the Amended and Restated Loan Agreement dated September 8,
1998 between Imperial Bank ("Bank") and Extricity Software, Inc., formerly
Crossroute Software, Inc. ("Borrower") in connection with the above referenced
loan ("Loan"), and as amended from time to time, the Bank and Borrower hereby
agree to waive for the periods ended January 31, 2000, February 28, 2000 and
March 31, 2000, the requirement under Section C of Paragraph 10 of the Loan
agreement, requiring a Maximum Net Loss in any single month not in excess of
$1,500,000, except for the month ending June 30, 1999, in which Borrower is to
maintain a Maximum Net Loss not in excess of $1,650,000.

This waiver should not be construed as a permanent waiver of any terms and
conditions.  Except for the above waiver, the Agreement shall remain unaltered
and in full force and effect.

Please acknowledge your approval by signing and returning this original letter
to my attention.

Sincerely,

/s/ Dan Sanchez
Dan Sanchez
Vice President
Emerging Growth Division
<PAGE>

Extricity Software, Inc.
April 27, 2000
Page 2 of 2

          Accepted and Agreed to:

          EXTRICITY SOFTWARE, INC.

          By:    /s/ Steve Albertulle
                 -----------------------

          Title: CFO and VP of Finance
                 -----------------------
                 and Administration
                 -----------------------

          Date:  April 27, 2000
                 -----------------------
<PAGE>

                         [LETTERHEAD OF IMPERIAL BANK]

April 27, 2000

Stephen Albertolle
Extricity Software
555 Twin Dolphin Drive
Suite 600
Redwood Shores, CA 94065

Re:  Loan # 00720000111/ 05 Note Number/ $750,000 Note Amount

Dear Steve:

Imperial Bank has approved an extension of your credit facility shown above as
evidenced by the Loan Agreement dated September 8, 1998, from its current
maturity of April 7, 2000 to May 7, 2000.

Except as modified and extended hereby, the existing documentation as amended
concerning your obligations remains in full force and effect.

Sincerely,

/s/ Dan Sanchez

Dan Sanchez
Vice President
Emerging Growth Industries Group

Acknowledged and accepted on April 27, 2000.

EXTRICITY SOFTWARE, INC.

By: /s/ Steve Albertolle
    ---------------------
Title: CFO and VP of Finance and Administration
       -----------------------------------------
<PAGE>
                                FIRST AMENDMENT

                                       TO

                              AMENDED AND RESTATED

                                 LOAN AGREEMENT
                                 --------------

     This First Amendment to Amended and Restated Loan Agreement is entered into
as of May 1, 2000 (the "Amendment"), by and between IMPERIAL BANK ("Bank") and
EXTRICITY, INC., formerly known as CROSSROUTE SOFTWARE, INC. ("Borrower").

                                    RECITALS
                                    --------

     Borrower has changed its name from "CrossRoute Software, Inc." to
"Extricity, Inc."  Borrower and Bank are parties to that certain Amended and
Restated Loan Agreement dated as of September 8, 1998 as amended thereafter (the
"Agreement"), that certain Amended and Restated General Security Agreement dated
as of September 8, 1998 (the "Security Agreement"), and that certain Collateral
Assignment, Patent Mortgage and Security Agreement dated as of September 8, 1998
(the "Collateral Assignment").  Since execution of the Loan Documents, Borrower
has since changed its name from CROSSROUTE SOFTWARE, INC. to EXTRICITY, INC.
The parties desire to amend the Agreement in accordance with the terms of this
Amendment.

          NOW, THEREFORE, the parties agree as follows:

     1.  Wherever the name "CrossRoute Software, Inc." appears in the Loan
Agreement and any related documents (the "Loan Documents") it shall mean
"Extricity, Inc." Any reference in the Loan Documents to Borrower, the
undersigned or other terms that refer to "CrossRoute Software, Inc." shall mean
and refer to "Extricity, Inc."

     2.  The reference in Section 1.B. to "$750,000.00 (the "Facility -B
Commitment")" is hereby revised to read "$1,500,000.00 (the "Facility -B
Commitment")".

     3.  The last sentence in Section 1.B. is hereby replaced with the
following:

                   "Borrower promises to pay to Bank the entire outstanding
unpaid principal balance (and all accrued unpaid interest thereon) of the
Facility-B Loan Account on or before May 1, 2001. ("Facility-B Maturity Date").

     4.  In Section 10.D., after the words "an internally-prepared financial
statement", add the following: "prepared in accordance with GAAP,".

     5.  Section 10.E. of the Agreement is hereby replaced in its entirety with
the following:

                   "Beginning with the fiscal year ended March 31, 2000, as soon
as it is available, but not later than one hundred twenty (120) days after the
end of Borrower's fiscal year, deliver to Bank unqualified copies of Borrower's
consolidated financial statements together with changes in financial position
audited by an independent certified public accountant selected by Borrower but
acceptable to Bank;"

     6.  The following new Section 10.I. is hereby added to the Agreement:

                   "I. At all times, maintain, a ratio of Quick Assets to
     Current Liabilities minus Deferred Maintenance Revenue of at least 1.50 to
     1.0.; and

          Section 10.C. of the Agreement is hereby replaced in its entirety with
     the following:

                   Beginning with the fiscal quarter and the month ending June
     30, 2000, Borrower shall not suffer a loss (excluding expenses related to
     amortization of deferred compensation) in excess of

                                       1
<PAGE>

30, 2000; $9,000,000 for the fiscal quarter ended December 31, 2000; $6,500,000
for the fiscal quarter ended March 31, 2001.

     7. The following new definitions are hereby added to Exhibit A of the
                                                          ---------
Agreement:

            "Bank Expenses" means all: reasonable costs or expenses (including
reasonable attorneys' fees and expenses) incurred in connection with the
preparation, negotiation, administration, and enforcement of the Loan Documents;
reasonable Collateral audit fees; and Bank's reasonable attorneys' fees and
expenses incurred in amending, enforcing or defending the Loan Documents
(including fees and expenses of appeal), incurred before, during and after an
Insolvency Proceeding, whether or not suit is brought.

            "Current Liabilities" means, as of any applicable date, all amounts
that should, in accordance with GAAP, be included as current liabilities on the
consolidated balance sheet of Borrower and its Subsidiaries, as at such date,
plus, to the extent not already included therein, all outstanding Credit
Extensions made under this Agreement, including all Indebtedness that is payable
upon demand or within one year from the date of determination thereof unless
such Indebtedness is renewable or extendible at the option of Borrower or any
Subsidiary to a date more than one year from the date of determination.

            "Deferred Maintenance Revenue" is all amounts received in advance of
performance under maintenance contracts and not yet recognized as revenue.

            "GAAP" means generally accepted accounting principles as in effect
from time to time.

            "Insolvency Proceeding" means any proceeding commenced by or against
any person or entity under any provision of the United States Bankruptcy Code,
as amended, or under any other bankruptcy or insolvency law, including
assignments for the benefit of creditors, formal or informal moratoria,
compositions, extension generally with its creditors, or proceedings seeking
reorganization, arrangement, or other relief.

            "Quick Assets" means, at any date as of which the amount thereof
shall be determined, the unrestricted cash and cash-equivalents, accounts
receivable and investments with maturities not to exceed 90 days, of Borrower
determined in accordance with GAAP.

     8. The definition of "IP Security Agreement" is hereby deleted in Exhibit A
                                                                       ---------
of the Agreement.

     9. The Exhibit B, Compliance Certificate and Exhibit C, Borrowing Base
            ---------                             ---------
Certificate of the Agreement are hereby replaced in their entirety with the
Exhibit B, Compliance Certificate and Exhibit C, Borrowing Base Certificate
---------                             ---------
attached hereto and incorporated into the Agreement by this reference.

     10. Bank will not be requiring specific filings on the Borrower's
Intellectual Property at the United States Patent and Trademark Office or the
Copyright Office.

     11. Unless otherwise defined, all initially capitalized terms in this
Amendment shall be as defined in the Agreement. The Agreement, as amended
hereby, shall be and remain in full force and effect in accordance with its
respective terms and hereby is ratified and confirmed in all respects. Except as
expressly set forth herein, the execution, delivery, and performance of this
Amendment shall not operate as a waiver of, or as an amendment of, any right,
power, or remedy of Bank under the Agreement, as in effect prior to the date
hereof. Borrower ratifies and reaffirms the continuing effectiveness of all
promissory notes, guaranties, security agreements, mortgages, deeds of trust,
environmental agreements, and all other instruments, documents and agreements
entered into in connection with the Agreement.

     12. Borrower represents and warrants that the Representations and
Warranties contained in the Agreement are true and correct as of the date of
this Amendment, and that no Event of Default has occurred and is continuing.

                                       2
<PAGE>

     13. This Amendment may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one instrument.

     14. As a condition to the effectiveness of this Amendment, Bank shall have
received, in form and substance satisfactory to Bank, the following:

            (a) this Amendment, duly executed by Borrower;

            (b) any Bank Expenses incurred through the date of this Amendment;

            (c) Corporate Resolutions to Borrow;

            (d) UCC-2 Amendment evidencing Borrower's name change; and

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

     IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the
first date above written.

                               EXTRICITY, INC.

                               By:    /s/ Stephen Albertolle
                                      ----------------------------------
                               Title: VP Finance, CFO and Secretary

                               IMPERIAL BANK

                               By:    /s/ Dan Sanchez
                                     ----------------------------------
                               Title: Vice President

                                       3
<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

TO:   IMPERIAL BANK

FROM: EXTRICITY, INC.

     The undersigned authorized officer of Extricity, Inc. hereby certifies that
in accordance with the terms and conditions of the Amended and Restated Loan
Agreement between Borrower and Bank (the "Agreement"), (i) Borrower is in
complete compliance for the period ending _______________ with all required
covenants except as noted below and (ii) all representations and warranties of
Borrower stated in the Agreement are true and correct in all material respects
as of the date hereof. 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
consistently applied 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>       <C>
Monthly financial statements              Monthly within 30 days                Yes       No
Annual (CPA Audited)                      FYE within 120 days (beg. 3/31/00)    Yes       No
10K and 10Q                               (as applicable)                       Yes       No
A/R & A/P Agings, Borrowing Base Cert.    Monthly within 20 days                Yes       No
A/R Audit                                 Initial and Annual                    Yes       No
IP Report                                 Quarterly within 30 days              Yes       No

Financial Covenant                           Required             Actual          Complies
------------------                           --------           -----------     ------------
Maintain on a Monthly  Basis:
  Minimum Adjusted Quick Ratio               1.50:1.00(1)        _____:1.00     Yes       No
  Maximum Term Liquidity Coverage Ratio      1.50:1.00           _____:1.00     Yes       No
  Minimum Tangible Net Worth                 $ 3,000,000         $________      Yes       No
  Maximum Loss                               $ ________(2)       $________      Yes       No
</TABLE>

(1)  At all times, maintain, a ratio of Quick Assets to Current Liabilities
minus Deferred Maintenance Revenue of at least 1.50 to 1.0.

(2)  Maintain, beginning with the fiscal quarter and the month ending March 31,
2000, Borrower shall not suffer a loss, in excess of $6,000,000 for each fiscal
quarter.
<TABLE>
<CAPTION>
COMMENTS REGARDING EXCEPTIONS:  See Attached.                 BANK USE ONLY
<S>                                                           <C>
                                                              Received by:_______________________________________
Sincerely,                                                                           AUTHORIZED SIGNER

                                                              Date:______________________________________________

___________________________________________________           Verified:__________________________________________
SIGNATURE                                                                            AUTHORIZED SIGNER

___________________________________________________           Date: _____________________________________________
TITLE
                                                              Compliance Status                       Yes      No
___________________________________________________
DATE
</TABLE>

                                       4
<PAGE>

                                    EXHIBIT C
                                    ---------

                           BORROWING BASE CERTIFICATE

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
Borrower: Extricity, Inc.                                                            Lender:  Imperial Bank

Commitment Amount:  $1,500,000.00
-----------------------------------------------------------------------------------------------------------
<S>                                                                   <C>                     <C>

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

ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
      4.  Amounts over 90 days due                                    $___________
      5.  Balance of 50% over 90 day accounts                         $___________
      6.  Concentration Limits
      7.  Foreign Accounts                                            $___________
      8.  Governmental Accounts                                       $___________
      9.  Contra Accounts                                             $___________
     10.  Demo Accounts                                               $___________
     11.  Intercompany/Employee Accounts                              $___________
     12.  Other (please explain on reverse)                           $___________
     13.  TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS                                               $___________
     14.  Eligible Accounts (#3 minus #13)                                                   $___________
     15.  LOAN VALUE OF ACCOUNTS (75% of #14)                                                $___________

BALANCES
     16.  Maximum Loan Amount                                                                $___________
     17.  Total Funds Available [Lesser of #16 or #15]                                       $___________
     18.  Present balance owing on Line of Credit                                            $___________
     19.  Outstanding under Sublimits (Letters of Credit)                                    $___________
     20.  RESERVE POSITION (#17 minus #18 and #19)                                           $___________
</TABLE>
The undersigned represents and warrants that the foregoing is true, complete and
correct, and that the information reflected in this Borrowing Base Certificate
complies with the representations and warranties set forth in the Loan and
Security Agreement between the undersigned and Imperial Bank.

EXTRICITY, INC.

By: _______________________________________
             Authorized Signer

                                       5
<PAGE>

                         CORPORATE RESOLUTIONS TO BORROW

Borrower:  EXTRICTY, INC.
--------------------------------------------------------------------------------

     I, the undersigned Secretary or Assistant Secretary of EXTRICITY, INC. (the
"Corporation"), HEREBY CERTIFY that the Corporation is organized and existing
under and by virtue of the laws of the state of its incorporation.

     I FURTHER CERTIFY that at a meeting of the Directors of the Corporation
duly called and held, at which a quorum was present and voting, (or by other
duly authorized corporate action in lieu of a meeting), the following
resolutions were adopted.

     BE IT RESOLVED, that any one (1) of the following named officers,
employees, or agents of this Corporation, whose actual signatures are shown
below:

<TABLE>
<CAPTION>
               NAMES                                POSITIONS                            ACTUAL SIGNATURES
-----------------------------------   --------------------------------------   --------------------------------------
<S>                                   <C>                                      <C>
Barry M. Ariko                        Chairman and CEO                         /s/ Barry M. Ariko
Stephen J. Albertolle                 VP Finance, CFO and Secretary            /s/ Stephen Albertolle
Vicki L. Randall                      General Counsel and Assistant            /s/ Vicki Randall
                                      Secretary
</TABLE>

acting for an on behalf of this Corporation and as its act and deed be, and they
hereby are, authorized and empowered:

     BORROW MONEY. To borrow from time to time from Imperial Bank ("Bank"), on
such terms as may be agreed upon between the officers, employees, or agents and
Bank, such sum or sums of money as in their judgment should be borrowed, without
limitation, including such terms and sums as are specified in that certain First
Amendment to Amended and Restated Loan Agreement dated as of May 1, 2000 (the
"Amendment").

     EXECUTE AMENDMENT. To execute and deliver to Bank the Amendment and related
documents, and also to execute and deliver to Bank one or more renewals,
extensions, modifications, consolidations, or substitutions therefor.

     GRANT SECURITY. To grant a security interest to Bank in the Collateral
described in the Amendment, which security interest shall secure all of the
Corporation's Obligations, as described in the Amendment.

     NEGOTIATE ITEMS. To draw, endorse, and discount with Bank all drafts, trade
acceptances, promissory notes, or other evidences of indebtedness payable to or
belonging to the Corporation or in which the Corporation may have an interest,
and either to receive cash for the same or to cause such proceeds to be credited
to the account of the Corporation with Bank, or to cause such other disposition
of the proceeds derived therefrom as they may deem advisable.

     FURTHER ACTS. In the case of lines of credit, to designate additional or
alternate individuals as being authorized to request advances thereunder, and in
all cases, to do and perform such other acts and things, to pay any

                                       6
<PAGE>

and all fees and costs, and to execute and deliver such other documents and
agreements as they may in their discretion deem reasonably necessary or proper
in order to carry into effect the provisions of these Resolutions.

     BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these
resolutions and performed prior to the passage of these resolutions are hereby
ratified and approved, that these Resolutions shall remain in full force and
effect and Bank may rely on these Resolutions until written notice of their
revocation shall have been delivered to and received by Bank. Any such notice
shall not affect any of the Corporation's agreements or commitments in effect at
the time notice is given.

     I FURTHER CERTIFY that the officers, employees, and agents named above are
duly elected, appointed, or employed by or for the Corporation, as the case may
be, and occupy the positions set forth opposite their respective names; that the
foregoing Resolutions now stand of record on the books of the Corporation; and
that the Resolutions are in full force and effect and have not been modified or
revoked in any manner whatsoever.

     I FURTHER CERTIFY that attached hereto are true and correct copies of the
Certificate of Incorporation and Bylaws of the Corporation.

     IN WITNESS WHEREOF, I have hereunto set my hand on May 1, 2000 and attest
that the signatures set opposite the names listed above are their genuine
signatures.

                                    CERTIFIED TO AND ATTESTED BY:

                                    X
                                    --------------------------------------------

================================================================================

                                       7

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