Document:

Prepared by MerrillDirect

Exhibit
4.2

WISCONSIN
CENTRAL TRANSPORTATION CORPORATION

AMENDMENT
NO. 2 TO 1997 LONG-TERM INCENTIVE PLAN

 

             This is Amendment No. 2 to The
Wisconsin Central Transportation Corporation 1997 Long-Term Incentive Plan
(“Plan”), as adopted by the board of directors of Wisconsin Central
Transportation Corporation (“Company”) on March 21, 1997 and approved by the
stockholders of the Company on May 15, 1997, as amended on April 4, 2001 by
Amendment No. 1 to the Plan.

             Section 1.5 of the Plan is amended
to read in its entirety as follows:

             ”1.5      Shares Available. 
Subject to adjustment as provided in Section 5.7, a total of Two Million
Five Hundred Thousand shares of Common Stock shall be available under this Plan
in the period beginning on the date of original adoption of this Plan.  For purposes of determining the number of
shares available at any time such total number of available shares shall be
reduced by the sum of (i) the aggregate number of shares of Common Stock that were
issued upon the grant of a Stock Award prior to such time and (ii) the
aggregate number of shares of Common Stock that at such time are subject to, or
prior to such time were issued upon exercise of, options, Free-Standing SARs or
Performance Shares.  (The number of
shares of Common Stock available under this Plan shall not be reduced by
settlements in cash of any options, Free-Standing SARs or Performance Shares.)

             Shares of Common Stock to be
delivered under this Plan shall be made available from authorized and unissued
shares of Common Stock, or authorized and issued shares of Common Stock
reacquired and held as treasury shares or otherwise or a combination thereof.”

 

             This Amendment No. 2 shall be
effective upon its adoption by the Board of Directors of the Company and its
approval by the stockholders of the Company.

 

Adopted by the Board of
Directors on April 4, 2001.

Approved by the Stockholders on
June 14, 2001.Prepared by MerrillDirect

BUSINESS
LOAN AGREEMENT (ASSET BASED)

	Principal

  $5,000,000.00	Loan Date

  06-28-2001	Maturity

  05-15-2002	Loan No

  530037155	Call / Coll
           2000	Account	Officer

  602	Initials
	References in the
  shaded area for Lender's use only and do not limit the applicability of this
  document to any particular loan or item.

  Any item above containg "***" has been omittted due to text length
  limitations.
	 
	Borrower:	Versant
  Corporation

  6539 Dumbarton Circle

  Freemont, CA 94555	 	Lender:	Greater
  Bay Bank

  A Division of Mid-Peninsula Bank

  39470 Paseo Padre Parkway

  Fremont, CA 94538
	

	

												

THIS BUSINESS LOAN AGREEMENT (ASSET BASED) dated June 28,
2001, is made and executed between Versant Corporation
("Borrower") and Greater Bay Bank ("Lender") on the
following terms and conditions. Borrower has received prior commercial loans
from Lender or has applied to Lender for a commercial loan or loans or other
financial accommodations,
including those which may be described on any exhibit or schedule
attached to this Agreement ("Loan"). Borrower understands and agrees that: (A)
in granting, renewing, or extending any Loan, Lender is relying upon Borrower's
representations, warranties, and agreements as set forth in this Agreement, and
(B) all such Loans shall be and remain subject to the terms and conditions of
this Agreement.

TERM. This Agreement shall be effective
as of June 28, 2001, and shall continue in full force and effect until such
time as all of Borrower's Loans in favor of Lender have been paid in full,
including principal, interest, costs, expenses, attorneys' fees, and other fees
and charges, or until such time as the parties may agree in writing to
terminate this Agreement.

LINE
OF CREDIT. Lender agrees to make Advances to Borrower from time to time from
the date of this Agreement to the Expiration Date, provided the aggregate
amount of such Advances outstanding at any time does not exceed the Borrowing
Base. Within the foregoing limits, Borrower may borrow, partially or wholly
prepay, and reborrow under this Agreement as follows:

Conditions
Precedent to Each Advance. Lender's obligation to make any Advance to or for
the account of Borrower under this Agreement is subject to the following
conditions precedent, with all documents, instruments, opinions, reports, and
other items required under this Agreement to be in form and substance
satisfactory to Lender:

	 	(1)	Lender
  shall have received evidence that this Agreement and all Related Documents
  have been duly authorized, 
	 	 	executed,
  and delivered by Borrower to Lender.
	 	 	 
	 	(2)	Lender
  shall have received such opinions of counsel, supplemental opinions, and
  documents as Lender may request.
	 	 	 
	 	(3)	The
  security interests in the Collateral shall have been duly authorized,
  created, and perfected with first lien priority and shall be in full force
  and effect.
	 	 	 
	 	(4)	All
  guaranties required by Lender for the credit facility(ies) shall have been
  executed by each Guarantor, delivered to Lender, and be in full force and
  effect.
	 	 	 
	 	(5)	Lender,
  at its option and for its sole benefit, shall have conducted an audit of
  Borrower's Accounts, books, records, and operations, and Lender shall be
  satisfied as to their condition.
	 	 	 
	 	(6)	Borrower
  shall have paid to Lender all fees, costs, and expenses specified in this
  Agreement and the Related Documents as are then due and payable.
	 	 	 
	 	(7)	There
  shall not exist at the time of any Advance a condition which would constitute
  an Event of Default under this Agreement, and Borrower shall have delivered
  to Lender the compliance certificate called for in the paragraph below titled
  "Compliance Certificate."

Making
Loan Advances. Advances under this credit facility, as well as directions for
payment from Borrower's accounts, may be requested orally or in writing by
authorized persons. Lender may, but need not, require that all oral requests be
confirmed in writing. Each Advance shall be conclusively deemed to have been
made at the request of and for the benefit ' of Borrower (1) when credited to
any deposit account of Borrower maintained with Lender or (2) when advanced in
accordance with the instructions of an authorized person. Lender, at its
option, may set a cutoff time, after which all requests for Advances will be
treated as having been requested on the next succeeding Business Day.

Mandatory
Loan Repayments. If at any time the aggregate principal amount of the
outstanding Advances shall exceed the applicable Borrowing Base, Borrower,
immediately upon written or oral notice from Lender, shall pay to Lender an
amount equal to the difference between the outstanding principal balance of the
Advances and the Borrowing Base. On the Expiration Date, Borrower shall pay to
Lender in full the aggregate unpaid principal amount of all Advances then
outstanding and all accrued unpaid interest, together with all other applicable
fees, costs and charges, if any, not yet paid.

Loan
Account. Lender shall maintain on its books a record of account in which Lender
shall make entries for each Advance and such other debits and credits as shall
be appropriate in connection with the credit facility. Lender shall provide
Borrower with periodic statements of Borrower's account, which statements shall
be considered to be correct and conclusively binding on Borrower unless
Borrower notifies Lender to the contrary within thirty (30) days after
Borrower's receipt of any such statement which Borrower deems to be incorrect.

COLLATERAL. To secure payment of the
Primary Credit Facility and performance of all other Loan, obligations and
duties owed by Borrower to Lender, Borrower (and others, if required) shall
grant to Lender Security Interests in such property and assets as Lender may
require. Lender's Security Interests in the Collateral shall be continuing
liens and shall include the proceeds and products of the Collateral, including
without limitation the proceeds of any insurance. With respect to the
Collateral, Borrower agrees and represents and warrants to Lender:

Perfection of Security Interests. Borrower
agrees to execute such financing statements and to take whatever other actions
are requested by Lender to perfect and continue Lender's Security Interests in
the Collateral. Upon request of Lender, Borrower will deliver to Lender any and
all of the documents evidencing or constituting the Collateral, and Borrower
will note Lender's interest upon any and all chattel paper if not delivered to
Lender for possession by Lender. Contemporaneous with the execution of this
Agreement, Borrower will execute one or more UCC financing statements and any
similar statements as may be required by applicable law, and Lender will file
such financing statements and all such similar statements in the appropriate
location or locations. Borrower hereby appoints Lender as its irrevocable
attorney-in-fact for the purpose of executing any documents necessary to
perfect or to continue any Security Interest. Lender may at any time, and
without further authorization from Borrower, file a carbon, photograph,
facsimile, or other reproduction of any financing statement for use as a
financing statement. Borrower will reimburse Lender for all expenses for the
perfection, termination, and the continuation of the perfection of Lender's
security interest in the Collateral. Borrower promptly will notify Lender of
any change in Borrower's name including any change to the assumed business
names of Borrower. Borrower also promptly will notify Lender of any change in
Borrower's Social Security Number or Employer Identification Number. Borrower
further agrees to notify Lender in writing prior to any change in address or
location of Borrower's principal governance office or should Borrower merge or
consolidate with any other entity.

Collateral Records. Borrower
does now, and at all times hereafter shall, keep correct and accurate records
of the Collateral, all of which records shall be available to Lender or
Lender's representative upon demand for inspection and copying at any
reasonable time. With respect to the Accounts, Borrower agrees to keep and
maintain such records as Lender may require, including without limitation
information concerning Eligible Accounts and Account balances and agings.
Records related to Accounts (Receivables) are or will be located at 6539
Dumbarton Circle, Fremont, CA 94555. 
The above is an accurate and complete list of all locations at which Borrower
keeps or maintains business records concerning Borrower's collateral.

Collateral Schedules. Concurrently with
the execution and delivery of this Agreement, Borrower shall execute and
deliver to Lender schedules of Accounts and schedules of Eligible Accounts in
form and substance satisfactory to the Lender. Thereafter supplemental
schedules shall be delivered according to the following schedule: With respect
to Eligible Accounts, schedules shall be delivered as follows: Monthly accounts
receivable and accounts payable agings within fifteen (15) days of month end
with Borrowing Base Certificate.

Representations and Warranties Concerning Accounts. With
respect to the Accounts, Borrower represents and warrants to Lender: (1) Each
Account represented by Borrower to be an Eligible Account for purposes of this
Agreement conforms to the requirements of the definition of an Eligible
Account; (2) All Account information listed on schedules delivered to Lender
will be true and correct, subject to immaterial variance; and (3) Lender, its
assigns, or agents shall have the right at any time and at Borrower's expense
to inspect, examine, and audit Borrower's records and to confirm with Account
Debtors the accuracy of such Accounts.

Remittance Account. Borrower
agrees that Lender may at any time require Borrower to institute procedures
whereby the payments and other proceeds of the Accounts shall be paid by the
Account Debtors under a remittance account or lock box arrangement with Lender,
or Lender's agent, or with one or more financial institutions designated by
Lender. Borrower further agrees that, if no Event of Default exists under this
Agreement, any and all of such funds received under such a remittance account
or lock box arrangement shall, at Lender's sole election and discretion, either
be (1) paid or turned over to Borrower; (2) deposited into one or more accounts
for the benefit of Borrower (which deposit accounts shall be subject to a
security assignment in favor of Lender); (3) deposited into one or more accounts
for the joint benefit of Borrower and Lender (which deposit accounts shall
likewise be subject to a security assignment in favor of Lender); (4) paid or
turned over to Lender to be applied to the Indebtedness in such order and
priority as Lender may determine within its sole discretion; or (5) any
combination of the foregoing as Lender shall determine from time to time.
Borrower further agrees that, should one or more Events of Default exist, any
and all funds received under such a remittance account or lock box arrangement
shall be paid or turned over to Lender to be applied to the Indebtedness, again
in such order and priority as Lender may determine within its sole discretion.

CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's
obligation to make the initial Advance and each subsequent Advance under this
Agreement shall be subject to the fulfillment to Lender's satisfaction of all
of the conditions set forth in this Agreement and in the Related Documents.

Loan Documents. Borrower shall provide to
Lender the following documents for the Loan: (1) the Note; (2) Security
Agreements granting to Lender security interests in the Collateral; (3)
financing statements perfecting Lender's Security Interests; (4) evidence of
insurance as required below; (5) together with all such Related Documents as
Lender may require for the Loan; all in form and substance satisfactory to
Lender and Lender's counsel.

Borrower's Authorization. Borrower
shall have provided in form and substance satisfactory to Lender properly
certified resolutions, duly authorizing the execution and delivery of this
Agreement, the Note and the Related Documents. In addition, Borrower shall have
provided such other resolutions, authorizations, documents and instruments as
Lender or its counsel, may require.

Fees and Expenses Under This Agreement. Borrower
shall have paid to Lender all fees, costs, and expenses specified in this
Agreement and the Related Documents as are then due and payable.

Representations and Warranties. The
representations and warranties set forth in this Agreement, in the Related
Documents, and in any document or certificate delivered to Lender under this
Agreement are true and correct.

No Event of Default. There
shall not exist at the time of any Advance a condition which would constitute
an Event of Default under this Agreement or under any Related Document.

REPRESENTATIONS AND WARRANTIES.  Borrower represents and
warrants to Lender, as of the date of this Agreement, as of the date of each
disbursement of loan proceeds, as of the date of any renewal, extension or
modification of any Loan, and at all times any Indebtedness exists:

Organization.  Borrower
is a corporation for profit which is, and at all times shall be, duly
organized, validly existing, and in good standing under and by virtue of the
laws of the State of California. Borrower is duly authorized to transact
business in all other states in which Borrower is doing business, having
obtained all necessary filings, governmental licenses and approvals for each
state in which Borrower is doing business. Specifically, Borrower is, and at
all times shall be, duly qualified as a foreigncorporation in all
states in which the failure to so qualify would have a material adverse effect
on its business or financial condition. Borrower has the full power and
authority to own its properties and to transact the business in which it is
presently engaged or presently proposes to engage. Borrower maintains an office
at 6539 Dumbarton Circle Fremont, CA 94555. Unless Borrower has designated otherwise
in writing, the principle office is the office at which Borrower keeps its
books and records including its records concerning the Collateral. Borrower
will notify Lender of any change in the location of Borrower's principle
office. Borrower shall do all things necessary to preserve and to keep in full
force and effect its existence, rights and privileges, and shall comply with
all regulations, rules, ordinances, statutes, orders and decrees of any
governmental or quasi-governmental authority or court applicable to Borrower
and Borrower's business activities.

Assumed Business Names. Borrower has
filed or recorded all documents or filings required by law relating to all
assumed business names used by Borrower. Excluding the name of Borrower, the
following is a complete list of all assumed business names under which Borrower
does business: None.

Authorization. Borrower's
execution, delivery, and performance of this Agreement and all the Related
Documents have been duly authorized by all necessary action by Borrower and do
not conflict with, result in a violation of, or constitute a default under (1)
any provision of Borrower's articles of incorporation or organization, or
bylaws, or any agreement or other instrument binding upon Borrower or (2) any
law, governmental regulation, court decree, or order applicable to Borrower or
to Borrower's properties.

Financial Information. Each
of Borrower's financial statements supplied to Lender truly and completely
disclosed Borrower's financial condition as of the date of the statement, and
there has been no material adverse change in Borrower's financial condition
subsequent to the date of the most recent financial statement supplied to
Lender. Borrower has no material contingent obligations except as disclosed in
such financial statements.

Legal Effect. This
Agreement constitutes, and any instrument or agreement Borrower is required to
give under this Agreement when delivered will constitute legal, valid, and
binding obligations of Borrower enforceable against Borrower in accordance with
their respective terms.

Properties.
Except as contemplated by this Agreement or as previously disclosed in
Borrower's financial statements Or in writing to Lender and as accepted by
Lender, and except for property tax liens for taxes not presently due and
payable, Borrower owns and has good title to all of Borrower's properties free
and clear of all Security Interests, and has not executed any security
documents or financing statements relating to such properties. All of
Borrower's properties are titled in Borrower's legal name, and Borrower has not
used, or filed a financing statement under, any other name for at least the
last five (5) years.

Hazardous Substances.
Except as disclosed to and acknowledged by Lender in writing, Borrower represents
and warrants that: (1) During the period of Borrower's ownership of Borrower's
Collateral, there has been no use, generation, manufacture, storage, treatment,
disposal, release or threatened release of any Hazardous Substance by any
person on. under, about or from any of the Collateral. (2) Borrower has no
knowledge of, or reason to believe that there has been (a) any breach or
violation of any Environmental Laws; (b) any use, generation, manufacture,
storage, treatment, disposal, release or threatened release of any Hazardous
Substance on, under, about or from the Collateral by any prior owners or
occupants of any of the Collateral; or (c) any actual or threatened litigation
or claims of any kind by any person relating to such matters. (3) Neither
Borrower nor any tenant, contractor, agent or other authorized user of any of
the Collateral shall use, generate, manufacture, store, treat, dispose of or
release any Hazardous Substance on, under, about or from any of the Collateral;
and any such activity shall be conducted in compliance with all applicable
federal, state, and local laws, regulations, and ordinances, including without
limitation all Environmental Laws. Borrower authorizes Lender and its agents to
enter upon the Collateral to make such inspections and tests as Lender may deem
appropriate to determine compliance of the Collateral with this section of the
Agreement. Any inspections or tests made by Lender shall be at Borrower's
expense and for Lender's purposes only and shall not be construed to create any
responsibility or liability on the part of Lender to Borrower or to any other
person. The representations and warranties contained herein are based on
Borrower's due diligence in investigating the Collateral for hazardous waste
and Hazardous Substances. Borrower hereby (1) releases and waives any future
claims against Lender for indemnity or contribution in the event Borrower
becomes liable for cleanup or other costs under any such laws, and (2) agrees
to indemnify and hold harmless Lender against any and all claims, losses,
liabilities, damages, penalties, and expenses which Lender may directly or
indirectly sustain or suffer resulting from a breach of this section of the
Agreement or as a consequence of any use, generation, manufacture, storage,
disposal, release or threatened release of a hazardous waste or substance on
the Collateral. The provisions of this section of the Agreement, including the
obligation to indemnify, shall survive the payment of the Indebtedness and the
termination, expiration or satisfaction of this Agreement and shall not be
affected by Lender's acquisition of any interest in any of the Collateral,
whether by foreclosure or otherwise.

Litigation and Claims.
No litigation, claim, investigation, administrative proceeding or similar
action (including those for unpaid taxes) against Borrower is pending or
threatened, and no other event has occurred which may materially adversely
affect Borrower's financial condition or properties, other than litigation,
claims, or other events, if any, that have been disclosed to and acknowledged
by Lender in writing.

Taxes. To the best of
Borrower's knowledge, all of Borrower's tax returns and reports that are or
were required to be filed, have been filed, and all taxes, assessments and other
governmental charges have been paid in full, except those presently being or to
be contested by Borrower in good faith in the ordinary course of business and
for which adequate reserves have been provided.

Lien Priority.
Unless otherwise previously disclosed to Lender in writing, Borrower has not
entered into or granted any Security Agreements, or permitted the filing or
attachment of any Security Interests on or affecting any of the Collateral
directly or indirectly securing repayment of Borrower's Loan and Note, that
would be prior or that may in any way be superior to Lender's Security
Interests and rights in and to such Collateral.

Binding Effect.
This Agreement, the Note, all Security Agreements (if any), and all Related
Documents are binding upon the signers thereof, as well as upon their
successors, representatives and assigns, and are legally enforceable in
accordance with their respective terms.

AFFIRMATIVE COVENANTS. Borrower
covenants and agrees with Lender that, so long as this Agreement remains in
effect, Borrower will:

Notices of Claims and Litigation. Promptly
inform Lender in writing of (1) all material adverse changes in Borrower's
financial condition, and (2) all existing and all threatened litigation,
claims, investigations, administrative proceedings or similar actions affecting
Borrower or any Guarantor which could materially affect the financial condition
of Borrower or the financial condition of any Guarantor.

Financial Records. Maintain
its books and records in accordance with GAAP, applied on a consistent basis,
and permit Lender to examine and audit Borrower's books and records at all
reasonable times.

Financial Statements. Furnish
Lender with the following:

             Annual
Statements. As soon as available,
but in no event later than ninety (90) days after the end of each fiscal year,
Borrower's balance sheet and income statement for the year ended, audited by a
certified public accountant satisfactory to Lender.

             Interim
Statements. As soon as available,
but in no event later than 15 days after the end of each month, Borrower's
balance sheet and profit and loss statement for the period ended, prepared by
Borrower.

             Tax
Returns. As soon as available,
but in no event later than thirty (30) days after the applicable filing date for*
the tax reporting period ended, Federal and other governmental tax returns,
prepared by Borrower.

All financial reports required to be
provided under this Agreement shall be prepared in accordance with GAAP,
applied on a consistent basis, and certified by Borrower as being true and
correct.

Additional Information. Furnish
such additional information and statements, as Lender may request from time to
time.

Financial Covenants and Ratios. Comply
with the following covenants and ratios:

             Working
Capital Requirements. Borrower shall comply
with the following working capital ratio requirements:

             Quick
Ratio. Maintain a Quick Ratio
in excess of 1.300 to 1.000.

Minimum Income and Cash flow Requirements. Maintain
not less than the following Minimum Net Income level: Maintain a minimum quarterly
Net Profit Before Interest, Income and Franchise Taxes, Depreciation,
amortization and Depletion Expenses plus other Noncash Charges-Extraordinary
Income (Gains/Losses) beginning September 30, 2001.  

Tangible Net Worth Requirements. Maintain
a minimum Tangible Net Worth of not less than: $6,500,000.00.

Other Requirements. Borrower
agrees to provide to Lender 10K report annually within ninety (90) days and 10Q
report within forty five (45) days of quarter end.

Except as provided above, all
computations made to determine compliance with the requirements contained in
this paragraph shall be made in accordance with generally accepted accounting
principles, applied on a consistent basis, and certified by Borrower as being
true and correct.

Insurance. Maintain
fire and other risk insurance, public liability insurance, and such other
insurance as Lender may require with respect to Borrower's properties and
operations, in form, amounts, coverages and with insurance companies acceptable
to Lender. Borrower, upon request of Lender, will deliver to Lender from time
to time the policies or certificates of insurance in form satisfactory to
Lender, including stipulations that coverages will not be cancelled or
diminished without at least ten (10) days prior written notice to Lender. Each
insurance policy also shall include an endorsement providing that coverage in
favor of Lender will not be impaired in any way by any act, omission or default
of Borrower or any other person. In connection with all policies covering
assets in which Lender holds or is offered a security interest for the Loans,
Borrower will provide Lender with such lender's loss payable or other
endorsements as Lender may require.

Insurance Reports. Furnish
to Lender, upon request of Lender, reports on each existing insurance policy
showing such information as Lender may reasonably request, including without
limitation the following: (1) the name of the insurer; (2) the risks insured;
(3) the amount of the policy; (4) the properties insured; (5) the then current
property values on the basis of which insurance has been obtained, and the
manner of determining those values; and (6) the expiration date of the policy.
In addition, upon request of Lender (however not more often than annually), Borrower
will have an independent appraiser satisfactory to Lender determine, as
applicable, the actual cash value or replacement cost of any Collateral. The
cost of such appraisal shall be paid by Borrower.

Other Agreements. Comply
with all terms and conditions of all other agreements, whether now or hereafter
existing, between Borrower and any other party and notify Lender immediately in
writing of any default in connection with any other such agreements.

Loan Proceeds. Use
all Loan proceeds solely for Borrower's business operations, unless
specifically consented to the contrary by Lender in writing.

Taxes, Charges and Liens. Pay
and discharge when due all of its indebtedness and obligations, including
without limitation all assessments, taxes, governmental charges, levies and
liens, of every kind and nature, imposed upon Borrower or its properties,
income, or profits, prior to the date on which penalties would attach, and all
lawful claims that, if unpaid, might become a lien or charge upon any of
Borrower's properties, income, or profits.

Performance. Perform
and comply, in a timely manner, with all terms, conditions, and provisions set
forth in this Agreement, in the Related Documents, and in all other instruments
and agreements between Borrower and Lender. Borrower shall notify Lender
immediately in writing of any default in connection with any agreement.

Operations. Maintain
executive and management personnel with substantially the same qualifications
and experience as the present executive and management personnel; provide
written notice to Lender of any change in executive and management personnel;
conduct its business affairs in a reasonable and prudent manner.

Environmental Studies. Promptly
conduct and complete, at Borrower's expense, all such investigations, studies,
samplings and testings as may be requested by Lender or any governmental
authority relative to any substance, or any waste or by-product of any
substance defined as toxic or a hazardous substance under applicable federal,
state, or local law, rule, regulation, order or directive, at or affecting any
property or any facility owned, [eased or used by Borrower.

Compliance with Governmental Requirements. Comply
with all laws, ordinances, and regulations, now or hereafter in effect, of all
governmental authorities applicable to the conduct of Borrower's properties,
businesses and operations, and to the use or occupancy of the Collateral,
including without limitation, the Americans With Disabilities Act. Borrower may
contest in good faith any such law, ordinance, or regulation and withhold
compliance during any proceeding, including appropriate appeals, so long as
Borrower has notified Lender in writing prior to doing so and so long as, in
Lender's sole opinion, Lender's interests in the Collateral are not
jeopardized. Lender may require Borrower to post adequate security or a surety
bond, reasonably satisfactory to Lender, to protect Lender's interest.

Inspection.
Permit employees or agents of Lender at any reasonable time to inspect any and
all Collateral for the Loan or Loans and Borrower's other properties and to
examine or audit Borrower's books, accounts, and records and to make copies and
memoranda of Borrower's books, accounts, and records. If Borrower now or at any
time hereafter maintains any records (including without limitation computer
generated records and computer software programs for the generation of such
records) in the possession of a third party, Borrower, upon request of Lender,
shall notify such party to permit Lender free access to such records at all
reasonable times and to provide Lender with copies of any records it may
request, all at Borrower's expense.

Compliance Certificates. Unless
waived in writing by Lender, provide Lender within fifteen (15) days after the
end of each month, with a certificate executed by Borrower's chief financial
officer, or other officer or person acceptable to Lender, certifying that the
representations and warranties set forth in this Agreement are true and correct
as of the date of the certificate and further certifying that, as of the date
of the certificate, no Event of Default exists under this Agreement.

Environmental Compliance and Reports. Borrower
shall comply in all respects with any and all Environmental Laws; not cause or
permit to exist, as a result of an intentional or unintentional action or
omission on Borrower's part or on the part of any third party, on property
owned and/or occupied by Borrower, any environmental activity where damage may
result to the environment, unless such environmental activity is pursuant to
and in compliance with the conditions of a permit issued by the appropriate
federal, state or local governmental authorities; shall furnish to Lender
promptly and in any event within thirty (30) days after receipt thereof a copy
of any notice, summons, lien, citation, directive, letter or other
communication from any governmental agency or instrumentality concerning any
intentional or unintentional action or omission on Borrower's part in
connection with any environmental activity whether or not there is damage to
the environment and/or other natural resources.

Additional Assurances. Make,
execute and deliver to Lender such promissory notes, mortgages, deeds of trust,
security agreements, assignments, financing statements, instruments, documents
and other agreements as Lender or its attorneys may reasonably request to
evidence and secure the Loans and to perfect all Security Interests.

RECOVERY OF ADDITIONAL COSTS. If
the imposition of or any change in any law, rule, regulation or guideline, or
the interpretation or application of any thereof by any court or administrative
or governmental authority (including any request or policy not having the force
of law) shall impose, modify or make applicable any taxes (except federal, state
or local income or franchise taxes imposed on Lender), reserve requirements,
capital adequacy requirements or other obligations which would (A) increase the
cost to Lender for extending or maintaining the credit facilities to which this
Agreement relates, (B) reduce the amounts payable to Lender under this
Agreement or the Related Documents, or (C) reduce the rate of return on
Lender's capital as a consequence of Lender's obligations with respect to the
credit facilities to which this Agreement relates, then Borrower agrees to pay
Lender such additional amounts as will compensate Lender therefor, within five
(5) days after Lender's written demand for such payment, which demand shall be
accompanied by an explanation of such imposition or charge and a calculation in
reasonable detail of the additional amounts payable by Borrower, which
explanation and calculations shall be conclusive in the absence of manifest
error.

LENDER'S
EXPENDITURES. If any action or
proceeding is commenced that would materially affect Lender's interest in the
Collateral or if Borrower fails to comply with any provision of this Agreement
or any Related Documents, including but not limited to Borrower's failure to
discharge or pay when due any amounts Borrower is required to discharge or pay
under this Agreement or any Related Documents, Lender on Borrower's behalf may
(but shall not be obligated to) take any action that Lender deems appropriate,
including but not limited to discharging or paying all taxes, liens, security
interests, encumbrances and other claims, at any time levied or placed on any
Collateral and paying all costs for insuring, maintaining and preserving any
Collateral. All such expenditures incurred or paid by Lender for such purposes
will then bear interest at the rate charged under the Note from the date
incurred or paid by Lender to the date of repayment by Borrower. All such
expenses will become a part of the Indebtedness and, at Lender's option, will
(A) be payable on demand; (B) be added to the balance of the Note and be
apportioned among and be payable with any installment payments to become due
during either (1) the term of any applicable insurance policy; or (2) the
remaining term of the Note; or (C) be treated as a balloon payment which will
be due and payable at the Note's maturity.

NEGATIVE COVENANTS. Borrower
covenants and agrees with Lender that while this Agreement is in effect,
Borrower shall not, without the prior written consent of Lender:

Indebtedness and Liens. (1)
Except for trade debt incurred in the normal course of business and
indebtedness to Lender contemplated by this Agreement, create, incur or assume
indebtedness for borrowed money, including capital leases, (2) sell, transfer,
mortgage, assign, pledge, lease, grant a security interest in, or encumber any
of Borrower's assets (except as allowed as Permitted Liens), or (3) sell with
recourse any of Borrower's accounts, except to Lender.

Continuity of Operations. (1)
Engage in any business activities substantially different than those in which
Borrower is presently engaged, (2) cease operations, liquidate, merge,
transfer, acquire or consolidate with any other entity, change its name,
dissolve or transfer or sell Collateral out of the ordinary course of business,
or (3) pay any dividends on Borrower's stock (other than dividends payable in
its stock), provided, however that notwithstanding the foregoing, but only so
long as no Event of Default has occurred and is continuing or would result from
the payment of dividends, if Borrower is a "Subchapter S Corporation"
(as defined in the Internal Revenue Code of 1986, as amended), Borrower may pay
cash dividends on its stock to its shareholders from time to time in amounts
necessary to enable the shareholders to pay income taxes and make estimated income
tax payments to satisfy their liabilities under federal and state law which
arise solely from their status as Shareholders of a Subchapter S Corporation
because of their ownership of shares of Borrower's stock, or purchase or retire
any of Borrower's outstanding shares or alter or amend Borrower's capital
structure.

Loans, Acquisitions and Guaranties. (1)
Loan, invest in or advance money or assets, (2) purchase, create or acquire any
interest in any other enterprise or entity, or (3) incur any obligation as surety
or guarantor other than in the ordinary course of business.

CESSATION OF ADVANCES. If
Lender has made any commitment to make any Loan to Borrower, whether under this
Agreement or under any other agreement, Lender shall have no obligation to make
Loan Advances or to disburse Loan proceeds if: (A) Borrower or any Guarantor is
in default under the terms of this Agreement or any of the Related Documents or
any other agreement that Borrower or any Guarantor has with Lender; (B)
Borrower or any Guarantor dies, becomes incompetent or becomes insolvent, files
a petition in bankruptcy or similar proceedings, or is adjudged a bankrupt; (C)
there occurs a material adverse change in Borrower's financial condition, in
the financial condition of any Guarantor, or in the value of any Collateral
securing any Loan; or (D) any Guarantor seeks, claims or otherwise attempts to
limit, modify or revoke such Guarantor's guaranty of the Loan or any other loan
with Lender.

DEFAULT. Each of the following
shall constitute an Event of Default under this Agreement:

Payment Default.
Borrower fails to make any payment when due under the Loan.

Other Defaults.
Borrower fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Agreement or in any of the Related
Documents or to comply with or to perform any term, obligation, covenant or
condition contained in any other agreement between Lender and Borrower.

Default in Favor of Third Parties. Borrower
or any Grantor defaults under any loan, extension of credit, security
agreement, purchase or sales agreement, or any other agreement, in favor of any
other creditor or person that may materially affect any of Borrower's or any
Grantor's property or Borrower's or any Grantor's ability to repay the Loans or
perform their respective obligations under this Agreement or any of the Related
Documents.

False Statements. Any
warranty, representation or statement made or furnished to Lender by Borrower
or on Borrower's behalf under this Agreement, the Note, or the Related
Documents is false or misleading in any material respect, either now or at the
time made or furnished or becomes false or misleading at any time thereafter.

Insolvency. The
dissolution or termination of Borrower's existence as a going business, the
insolvency of Borrower, the appointment of a receiver for any part of
Borrower's property, any assignment for the benefit of creditors, any type of
creditor workout, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against Borrower.

Defective Collateralization. This
Agreement or any of the Related Documents ceases to be in full force and effect
(including failure of any collateral document to create a valid and perfected
security interest or lien) at any time and for any reason.

Creditor or Forfeiture Proceedings. Commencement
of foreclosure or forfeiture proceedings, whether by judicial proceeding,
self-help, repossession or any other method, by any creditor of Borrower or by
any governmental agency against any collateral securing the Loan. This includes
a garnishment of any of Borrower's accounts, including deposit accounts, with
Lender. However, this Event of Default shall not apply if there is a good faith
dispute by Borrower as to the validity or reasonableness of the claim which is
the basis of the creditor or forfeiture proceeding and if Borrower gives Lender
written notice of the creditor or forfeiture proceeding and deposits with
Lender monies or a surety bond for the creditor or forfeiture proceeding, in an
amount determined by Lender, in its sole discretion, as being an adequate
reserve or bond for the dispute.

Events Affecting Guarantor. Any
of the preceding events occurs with respect to any Guarantor of any of the
Indebtedness or any Guarantor dies or becomes incompetent, or revokes or
disputes the validity of, or liability under, any Guaranty of the Indebtedness.
In the event of a death, Lender, at its option, may, but shall not be required
to, permit the Guarantor's estate to assume unconditionally the obligations
arising under the guaranty in a manner satisfactory to Lender, and, in doing
so, cure any Event of Default.

Change in Ownership. Any
change in ownership of twenty-five percent (25%) or more of the common stock of
Borrower.

Adverse Change. A
material adverse change occurs in Borrower's financial condition, or Lender
believes the prospect of payment or performance of the Loan is impaired.

Right to Cure. If
any default, other than a default on Indebtedness, is curable and if Borrower
or Grantor, as the case may be, has not been given a notice of a similar
default within the preceding twelve (12) months, it may be cured (and no Event
of Default will have occurred) if Borrower or Grantor, as the case may be,
after receiving written notice from Lender demanding cure of such default: (1)
cure the default within fifteen (15) days; or (2) if the cure requires more
than fifteen (15) days, immediately initiate steps which Lender deems in
Lender's sole discretion to be sufficient to cure the default and thereafter
continue and complete all reasonable and necessary steps sufficient to produce
compliance as soon as reasonably practical.

EFFECT OF AN EVENT OF DEFAULT. If
any Event of Default shall occur, except where otherwise provided in this
Agreement or the Related Documents, all commitments and obligations of Lender
under this Agreement or the Related Documents or any other agreement
immediately will terminate (including any obligation to make further Loan
Advances or disbursements), and, at Lender's option, all Indebtedness
immediately will become due and payable, all without notice of any kind to
Borrower, except that in the case of an Event of Default of the type described
in the "Insolvency" subsection above, such acceleration shall be
automatic and not optional. In addition, Lender shall have all the rights and
remedies provided in the Related Documents or available at law, in equity, or
otherwise. Except as may be prohibited by applicable law, all of Lender's
rights and remedies shall be cumulative and may be exercised singularly or
concurrently. Election by Lender to pursue any remedy shall not exclude pursuit
of any  other remedy, and an election to
make expenditures or to take action to perform an obligation of Borrower or of
any Grantor shall not affect Lender's right to declare a default and to
exercise its rights and remedies.

ACCOUNTS RECEIVABLE AUDITS. Audits
of accounts receivable may be conducted annually and within forty five (45)
days of documentation or prior to initial line advance, or at such frequency as
Lender shall require. It is agreed that Lender will be reimbursed for the costs
of any such audits .

ADDITIONAL FINANCIAL REPORTING. Borrower
to provide Lender with 1 O-K report annually within ninety (90) days and 1 O-Q
report quarterly within forty five (45) days.

DEPOSIT RELATIONSHIP. Borrower
agrees that until such time as Borrower is no longer subject to the terms of
any credit agreement(s) with Lender, the primary deposit account(s) maintained
by Borrower will be placed with Lender, or a bank affiliated with Lender.

EXHIBIT A.  Exhibit A is attached to this Agreement, and
by this reference is made a part of this Agreement just as if all the
provisions, terms and conditions of the Exhibit had been fully set forth in
this Agreement.

MISCELLANEOUS PROVISIONS. The
following miscellaneous provisions are a part of this Agreement:

Amendments. This
Agreement, together with any Related Documents, constitutes the entire
understanding and agreement of the parties as to the matters set forth in this
Agreement. No alteration of or amendment to this Agreement shall be effective
unless given in writing and signed by the party or parties sought to be charged
or bound by the alteration or amendment.

Attorneys' Fees; Expenses.
Borrower agrees to pay upon demand all of Lender's costs and expenses,
including Lender's attorneys' fees and Lender's legal expenses, incurred in
connection with the enforcement of this Agreement. Lender may hire or pay
someone else to help enforce this Agreement, and Borrower shall pay the costs
and expenses of such enforcement. Costs and expenses include Lender's
attorneys' fees and legal expenses whether or not there is a lawsuit, including
attorneys' fees and legal expenses for bankruptcy proceedings (including
efforts to modify or vacate any automatic stay or injunction), appeals, and any
anticipated post-judgment collection services. Borrower also shall pay all
court costs and such additional fees as may be directed by the court.

Caption Headings.
Caption headings in this Agreement are for convenience purposes only and are
not to be used to interpret or define the provisions of this Agreement.

Consent to Loan Participation. Borrower
agrees and consents to Lender's sale or transfer, whether now or later, of one
or more participation interests in the Loan to one or more purchasers, whether
related or unrelated to Lender. Lender may provide, without any limitation
whatsoever, to any one or more purchasers, or potential purchasers, any
information or knowledge Lender may have about Borrower or about any other
matter relating to the Loan, and Borrower hereby waives any rights to privacy
Borrower may have with respect to such matters. Borrower additionally waives
any and all notices of sale of participation interests, as well as all notices
of any repurchase of such participation interests. Borrower also agrees that
the purchasers of any such participation interests will be considered as the
absolute owners of such interests in the Loan and will have all the rights
granted under the participation agreement or agreements governing the sale of
such participation interests. Borrower further waives all rights of offset or
counterclaim that it may have now or later against Lender or against any
purchaser of such a participation interest and unconditionally agrees that
either Lender or such purchaser may enforce Borrower's obligation under the
Loan irrespective of the failure or insolvency of any holder of any interest in
the Loan. Borrower further agrees that the purchaser of any such participation
interests may enforce its interests irrespective of any personal claims or
defenses that Borrower may have against Lender.

Governing Law. This Agreement will be governed by, construed
and enforced in accordance with federal law and the laws of the State of California.
This Agreement has been accepted by Lender in the State of California.

Choice of Venue. If
there is a lawsuit, Borrower agrees upon Lender's request to submit to the
jurisdiction of the courts of Alameda County, State of California.

No Waiver by Lender. Lender
shall not be deemed to have waived any rights under this Agreement unless such
waiver is given in writing and signed by Lender. No delay or omission on the
Part of Lender in exercising any right shall operate as a waive  r of such right or any other right. A waiver
by Lender of a provision of this Agreement shall not prejudice or constitute a
waiver of Lender's right otherwise to demand strict compliance with that
provision or any other provision of this Agreement. No prior waiver by Lender,
nor any course of dealing between Lender and Borrower, or between Lender and
any Grantor, shall constitute a waiver of any of Lender's rights or of any of
Borrower's or any Grantor's obligations as to any future transactions. Whenever
the consent of Lender is required under this Agreement, the granting of such
consent by Lender in any instance shall not constitute continuing consent to
subsequent instances where such consent is required and in all cases such
consent may be granted or withheld in the sole discretion of Lender.

Notices. Any notice required to
be given under this Agreement shall be given in writing, and shall be effective
when actually delivered, when actually received by telefacsimile (unless
otherwise required by law), when deposited with a nationally recognized
overnight courier, or, if mailed, when deposited in the United States mail, as
first class, certified or registered mail postage prepaid, directed to the
addresses shown near the beginning of this Agreement. Any party may change its
address for notices under this Agreement by giving formal written notice to the
other parties, specifying that the purpose of the notice is to change the
party's address. For notice purposes, Borrower agrees to keep Lender informed
at all times of Borrower's current address. Unless otherwise provided or
required by law, if there is more than one Borrower, any notice given by Lender
to any Borrower is deemed to be notice given to all Borrowers.

Severability. If
a court of competent jurisdiction finds any provision of this Agreement to be
illegal, invalid, or unenforceable as to any circumstance, that finding shall
not make the offending provision illegal, invalid, or unenforceable as to any
other circumstance. If feasible, the offending provision shall be considered
modified so that it becomes legal, valid and enforceable. If the offending
provision cannot be so modified, it shall be considered deleted from this
Agreement. Unless otherwise required by law, the illegality, invalidity, or
unenforceability of any provision of this Agreement shall not affect the
legality, validity or enforceability of any other provision of this Agreement.

Subsidiaries and Affiliates of Borrower. To
the extent the context of any provisions of this Agreement makes it
appropriate, including without limitation any representation, warranty or
covenant, the word "Borrower" as used in this Agreement shall include
all of Borrower's subsidiaries and affiliates. Notwithstanding the foregoing
however, under no circumstances shall this Agreement be construed to require
Lender to make any Loan or other financial accommodation to any of Borrower's
subsidiaries or affiliates.

Successors
and Assigns. All covenants and
agreements contained by or on behalf of Borrower shall bind Borrower's
successors and assigns and shall inure to the benefit of Lender and its
successors and assigns. Borrower shall not, however, have the right to assign
Borrower's rights under this Agreement or any interest therein, without the
prior written consent of Lender.

Survival of Representations and Warranties. Borrower
understands and agrees that in extending Loan Advances, Lender is relying on
all representations, warranties, and covenants made by Borrower in this
Agreement or in any certificate or other instrument delivered by Borrower to
Lender under this Agreement or the Related Documents. Borrower further agrees
that regardless of any investigation made by Lender, all such representations,
warranties and covenants will survive the extension of Loan Advances and
delivery to Lender of the Related Documents, shall be continuing in nature,
shall be deemed made and redated by Borrower at the time each Loan Advance is
made, and shall remain in full force and effect until such time as Borrower's
Indebtedness shall be paid in full, or until this Agreement shall be terminated
in the manner provided above, whichever is the last to occur.

Time is of the Essence. Time
is of the essence in the performance of this Agreement.

DEFINITIONS. The
following capitalized words and terms shall have the following meanings when
used in this Agreement. Unless specifically stated to the contrary, all
references to dollar amounts shall mean amounts in lawful money of the United
States of America. Words and terms used in the singular shall include the plural,
and the plural shall include the singular, as the context may require. Words
and terms not otherwise defined in this Agreement shall have the meanings
attributed to such terms in the Uniform Commercial Code. Accounting words and
terms not otherwise defined in this Agreement shall have the meanings assigned
to them in accordance with generally accepted accounting principles as in
effect on the date of this Agreement:

Account. The word
"Account" means a trade account, account receivable, other
receivable, or other right to payment for goods sold or services rendered owing
to Borrower (or to a third party grantor acceptable to Lender).

Advance. The word
"Advance" means a disbursement of Loan funds made, or to be made, to
Borrower or on Borrower's behalf under the terms and conditions of this
Agreement.

Agreement. The word
"Agreement" means this Business Loan Agreement (Asset Based), as this
Business Loan Agreement (Asset Based) may be amended or modified from time to
time, together with all exhibits and schedules attached to this Business Loan
Agreement (Asset Based) from time to time.

Borrower. The word
"Borrower" means Versant Corporation, and all other persons and
entities signing the Note in whatever capacity.

Borrowing Base.
The words "Borrowing Base" mean, as determined by Lender from time to
time, the lesser of (1) $5,000,000.00 or (2) 80.000% of the aggregate
amount of Eligible Accounts (not to exceed in corresponding Loan amount based
on Eligible Accounts $5,000,000.00).

Business Day. The
words "Business Day" mean a day on which commercial banks are open in
the State of California.

Cash & Equivalent. The words
"Cash & Equivalent" mean all of Borrower's cash, marketable
securities, and other near-cash items, excluding sinking funds.

Collateral.
The word "Collateral" means all property and assets granted as
collateral security for a Loan, whether real or personal property, whether
granted directly or indirectly, whether granted now or in the future, and
whether granted in the form of a security interest, mortgage, collateral
mortgage, deed of trust, assignment, pledge, crop pledge, chattel mortgage,
collateral chattel mortgage, chattel trust, factor's lien, equipment trust,
conditional sale, trust receipt, lien, charge, lien or title retention
contract, lease or consignment intended as a security device, or any other
security or lien interest whatsoever, whether created by law, contract, or
otherwise. The -word Collateral also includes without limitation all collateral
described in the Collateral section of this Agreement.

Eligible Accounts. The
words "Eligible Accounts" mean at any time, all of Borrower's
Accounts which contain selling terms and conditions acceptable to Lender. The
net amount of any Eligible Account against which Borrower may borrow shall exclude
all returns, discounts, credits, and offsets of any nature. Unless otherwise
agreed to by Lender in writing, Eligible Accounts do not include:

(1) Accounts with respect to which the
Account Debtor is employee or agent of Borrower.

(2) Accounts with respect to which the
Account Debtor is a subsidiary of, or affiliated with Borrower or its
shareholders, officers, or directors.

(3) Accounts with respect to which goods
are placed on consignment, guaranteed sale, or other terms by reason of which
the payment by the Account Debtor may be conditional.

(4) Accounts with respect to which the
Account Debtor is not a resident of the United States, except to the extent
such Accounts are supported by insurance, bonds or other assurances
satisfactory to Lender.

(5) Accounts with respect to which
Borrower is or may become liable to the Account Debtor for goods sold or
services rendered by the Account Debtor to Borrower.

(6) Accounts which are subject to
dispute, counterclaim, or setoff.

(7) Accounts with respect to which the
goods have not been shipped or delivered, or the services have not been
rendered, to the Account Debtor.

(8) Accounts with respect to which
Lender, in its sole discretion, deems the creditworthiness or financial
condition of the Account Debtor to be unsatisfactory.

(9) Accounts of any Account Debtor who
has filed or has had filed against it a petition in bankruptcy or an
application for relief under any provision of any state or federal bankruptcy,
insolvency, or debtor-in-relief acts; or who has had appointed a trustee,
custodian, or receiver for the assets of such Account Debtor; or who has made
an assignment for the benefit of creditors or has become insolvent or fails
generally to pay its debts (including its payrolls) as such debts become due.

(10) Accounts with respect to which the
Account Debtor is the United States government or any department or agency of
the United States.

(11) Accounts which have not been paid in
full
within 90 days from the invoice date. The entire balance of any
Account of any single Account Debtor will be ineligible whenever the portion of
the Account which has not been paid within 90 days from the invoice date is in excess
of 20.000%
of the total amount outstanding on the Account.

(1 2) That portion of the Accounts of any
single Account Debtor which exceeds 25.000% of all of Borrower's Accounts.

(13) C.O.D. accounts, cash accounts,
noncustomer miscellaneous accounts and finance charges incurred on past due
account balances.

(14) Accounts in which the borrower fails
to provide Lender with requested financial information concerning the subject
accounts (Although certain concentrations are examined on a case-by-case basis,
Lender's standard procedure is to request D & B reports or financial
statements on all potential concentrations greater than 25%.)

(15) Unbilled accounts receivable.

(16) Dated and/or extended-term accounts
receivable.

(17) Refundable maintenance contract
accounts receivable.

(18) Bonded accounts receivable.

(19) Retainages (amounts withheld from
billing and which may not be due depending on acceptable performance or
completion of a contract.)

(20) Any accounts that in the sole
discretion of the Lender are considered to be ineligible for the purposes of
the transaction(s) contemplated.

Environmental Laws. The
words "Environmental Laws" mean any and all state, federal and local
statutes, regulations and ordinances relating to the protection of human health
or the environment, including without limitation the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended, 42
U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and
Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the
Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the
Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq.,
Chapters 6.5 through 7.7 of Division 20 of the California Health and Safety
Code, Section 25100, et seq., or other applicable state or federal laws, rules,
or regulations adopted pursuant thereto.

Event of Default. The
words "Event of Default" mean any of the events of default set forth
in this Agreement in the default section of this Agreement.

Expiration Date. The
words "Expiration Date" mean the date of termination of Lender's
commitment to lend under this Agreement.

GAAP. The word
"GAAP" means generally accepted accounting principles.

Grantor. The word
"Grantor" means each and all of the persons or entities granting a
Security Interest in any Collateral for the Loan, including without limitation
all Borrowers granting such a Security Interest.

Guarantor.
The word "Guarantor" means any guarantor, surety, or accommodation
party of any or all of the Loan.

Guaranty. The word
"Guaranty" means the guaranty from Guarantor to Lender, including without
limitation a guaranty of all or part of the Note.

Hazardous Substances.
The words "Hazardous Substances" mean materials that, because of
their quantity, concentration or physical, chemical or infectious
characteristics, may cause or pose a present or potential hazard to human
health or the environment when improperly used, treated, stored, disposed of,
generated, manufactured, transported or otherwise handled. The words
"Hazardous Substances" are used in their very broadest sense and include
without limitation any and all hazardous or toxic substances, materials or
waste as defined by or listed under the Environmental Laws. The term
"Hazardous Substances" also includes, without limitation, petroleum
and petroleum by-products or any fraction thereof and asbestos.

Indebtedness.
The word "Indebtedness" means the indebtedness evidenced by the Note
or Related Documents, including all principal and interest together with all
other indebtedness and costs and expenses for which Borrower is responsible
under this Agreement or under any of the Related Documents.

Lender. The word
"Lender" means Greater Bay Bank, its successors and assigns.

Loan. The word
"Loan" means any and all loans and financial accommodations from
Lender to Borrower whether now or hereafter existing, and however evidenced,
including without limitation those loans and financial accommodations described
herein or described on any exhibit or schedule attached to this Agreement from
time to time.

Note.  The word "Note" means the Note
executed by Borrower in the principal amount of $5,000,000.00 dated June 28,
2001, together with all renewals of, extensions of, modifications of,
refinancings of, consolidations of, and substitutions for the note or credit
agreement.

Permitted Liens. The
words "Permitted Liens" mean (1) liens and security interests
securing Indebtedness owed by Borrower to Lender; (2) liens for taxes,
assessments, or similar charges either not yet due or being contested in good faith;
(3) liens of materialmen, mechanics, warehousemen, or carriers, or-other like
liens arising in the ordinary course of business and securing obligations which
are not yet delinquent; (4) purchase money liens or purchase money security
interests upon or in any property acquired or held by Borrower in the ordinary
course of business to secure indebtedness outstanding on the date of this
Agreement or permitted to be incurred under the paragraph of this Agreement
titled "Indebtedness and Liens"; (5) liens and security interests
which, as of the date of this Agreement, have been disclosed to and approved by
the Lender in writing; and (6) those liens and security interests which in the
aggregate constitute an immaterial and insignificant monetary amount with
respect to the net value of Borrower's assets.

Primary Credit Facility. The
words "Primary Credit Facility" mean the credit facility described in
the Line of Credit section of this Agreement.

Related Documents.
The words "Related Documents" mean all promissory notes, credit
agreements, loan agreements, environmental agreements, guaranties, security
agreements, mortgages, deeds of trust, security deeds, collateral mortgages,
and all other instruments, agreements and documents, whether now or hereafter
existing, executed in connection with the Loan.

Security Agreement. The
words "Security Agreement" mean and include without limitation any
agreements, promises, covenants, arrangements, understandings or other
agreements, whether created by law, contract, or otherwise, evidencing,
governing, representing, or creating a Security Interest.

Security Interest. The
words "Security Interest" mean, without limitation, any and all types of
collateral security, present and future, whether in the form of a lien, charge,
encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop
pledge, chattel mortgage, collateral chattel mortgage, chattel trust, factor's
lien, equipment trust, conditional sale, trust receipt, lien or title retention
contract, lease or consignment intended as a security device, or any other security
or lien interest whatsoever whether created by law, contract, or otherwise.

Tangible Net Worth. The
words "Tangible Net Worth" mean Borrower's total assets excluding all
intangible assets (i.e., goodwill, trademarks, patents, copyrights, organizational
expenses, and similar intangible items, but including leaseholds and leasehold
Improvements) less total debt.

Trade Receivables.
The words "Trade Receivables" mean all of Borrower's accounts from
trade, net of allowance for doubtful accounts.

BORROWER ACKNOWLEDGES HAVING READ ALL THE
PROVISIONS OF THIS BUSINESS LOAN AGREEMENT (ASSET BASED) AND BORROWER AGREES TO
ITS TERMS. THIS BUSINESS LOAN AGREEMENT (ASSET BASED) IS DATED JUNE 28, 2001

	VERSANT CORPORATION 
	 
	By: /s/ LEE McGRATH
	 	

	 
	 	Lee McGrath, Chief Financial Officer of Versant
	 	Corporation
	 	 
	LENDER:
	 
	 
	GREATER BAY BANK
	 
	By:
	 	

	 
	 	Authorized Signer

EXHIBIT
"A" TO BUSINESS LOAN AGREEMENT

	Principal

  $5,000,000.00	Loan Date

  06-28-2001	Maturity

  05-15-2002	Loan No

  530037155	Call / Coll
           2000	Account	Officer

  602	Initials
	References in the
  shaded area for Lender's use only and do not limit the applicability of this
  document to any particular loan or item.

  Any item above containg "***" has been omittted due to text length
  limitations.
	 
	Borrower:	Versant
  Corporation

  6539 Dumbarton Circle

  Freemont, CA 94555	 	Lender:	Greater
  Bay Bank

  A Division of Mid-Peninsula Bank

  39470 Paseo Padre Parkway

  Fremont, CA 94538
												

This EXHIBIT "A" TO BUSINESS
LOAN AGREEMENT is attached to and by this reference is made a part of the
Business Loan Agreement (Asset Based), dated June 28, 2001, and executed in
connection with a loan or other financial accommodations between GREATER BAY
BANK and Versant Corporation.

ADDITIONAL PROVISION
As applicable, the definition(s) of the following financial covenants and/or
defined terms contained in this Business Loan Agreement are amended to read as
follows:

Working Capital.
The words "Working Capital" mean Borrower's current assets less
current liabilities.

Tangible Net Worth.
The words "Tangible Net Worth" mean Borrower's total assets excluding
all intangible assets (i.e., goodwill, trademarks, patents, copyrights,
franchises, capitalized software, covenants not to compete, organizational
costs, investments, employee/owner and intercompany accounts receivable and
similar intangible items) less total debt, excluding subordinated debt.

Cash Flow. The words "Cash
Flow" mean Borrower's net income after taxes, exclusive of extraordinary
gains and income, plus depreciation and amortization less cash dividends,
distributions and withdrawals, and repurchase of treasury stock.

Debt / Worth Ratio.
The ratio "Debt / Worth" means Borrower's Total Liabilities,
excluding subordinated debt, divided by Borrower's Tangible Net Worth.

THIS EXHIBIT "A" TO BUSINESS LOAN AGREEMENT IS
EXECUTED ON JUNE 28, 2001.

BORROWER

	VERSANT CORPORATION 
	 
	By: /s/ LEE McGRATH
	 	

	 
	 	Lee McGrath, Chief Financial Officer of Versant
	 	Corporation
	 	 
	LENDER:
	 
	 
	GREATER BAY BANK
	 
	By:
	 	

	 
	 	Authorized Signer

 

Addendum
to Business Loan Agreement Dated 06/28/01 as applicable, the definition of the
following financial covenants and/or terms contained in this Business Loan
Agreement are amended to read as follows:

Quick
Ratio:  Defined as cash and equivalent
plus 80% of eligble receivables divided by current liabilities (excluding
deferred revenue).

 

	 /s/ LEE McGRATH
	

	 
	Lee
  McGrath, CFO of Versant
	Corporation

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