Document:

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                                                                    Exhibit 10.5

     This AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT is entered into as of
July 2, 2004, by and between COMERICA BANK, successor in interest to IMPERIAL
BANK ("Bank") and SOUNDBITE COMMUNICATIONS, INC. ("Borrower").

                                    RECITALS

          A. Bank and Borrower are parties to that certain Loan and Security
Agreement dated as of January 4, 2001, as amended, including without limitation
by that certain First Amendment to Loan and Security Agreement dated as of
January 18, 2002, that certain Second Amendment to Loan and Security Agreement
dated as of February 15, 2002, that certain Third Amendment to Loan and Security
Agreement dated as of April 30, 2002, that certain Fourth Amendment to Loan and
Security Agreement dated as of May 29, 2002. that certain Fifth Amendment to
Loan and Security Agreement dated as of June 14, 2002, that certain Sixth
Amendment to Loan and Security Agreement dated as of February 14, 2003, that
certain Seventh Amendment to Loan and Security Agreement is entered into as of
May 28, 2003. that certain Eighth Amendment to Loan and Security Agreement dated
as of July 11, 2003, that certain Ninth Amendment to Loan and Security Agreement
dated as of September 15, 2003, that certain Tenth Amendment to Loan and
Security Agreement dated as of September 26, 2003, and that certain Eleventh
Amendment to Loan and Security Agreement dated as of October 3, 2003
(collectively, the "Original Agreement").

          B. Borrower and Bank wish to amend and restate the terms of the
Original Agreement. This Agreement sets forth the terms on which Bank will
advance credit to Borrower, and Borrower will repay the amounts owing to Bank.

                                    AGREEMENT

     The parties agree as follows:

     1.   DEFINITIONS AND CONSTRUCTION.

          1.1 Definitions. As used in this Agreement, the following terms shall
have the following definitions:

               "Accounts" means all presently existing and hereafter arising
accounts, contract rights. payment intangibles, and all other forms of
obligations owing to Borrower arising out of the sale or lease of goods
(including, without limitation, the licensing of software and other technology)
or the rendering of services by Borrower, whether or not earned by performance,
and any and all credit insurance, guaranties, and other security therefor, as
well as all merchandise returned to or reclaimed by Borrower and Borrower's
Books relating to any of the foregoing.

               "Advance" or "Advances" means a cash advance or cash advances
under the Revolving Facility.

               "Affiliate" means, with respect to any Person, any Person that
owns or controls directly or indirectly such Person, any Person that controls or
is controlled by or is under common control with such Person, and each of such
Person's senior executive officers, directors, and partners.

               "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.

               "Borrower's Books" means all of Borrower's books and records
including: ledgers; records concerning Borrower's assets or liabilities, the
Collateral, business operations or financial condition; and all computer
programs, or tape files, and the equipment, containing such information.

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               "Borrowing Base" means an amount equal to Two Hundred Fifty
Thousand Dollars ($250,000) plus eighty percent (80%) of Eligible Accounts, as
determined by Bank with reference to the most recent Borrowing Base Certificate
delivered by Borrower

               "Business Day" means any day that is not a Saturday, Sunday, or
other day on which banks in the State of California or the Commonwealth of
Massachusetts are authorized or required to close.

               "Change in Control" shall mean a transaction in which any
"person" or "group" (within the meaning of Section 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934) not a holder of Borrower's securities as of the
date of this Agreement, becomes the "beneficial owner" (as defined in Rule l3d-3
under the Securities Exchange Act of 1934), directly or indirectly, of a
sufficient number of shares of all classes of stock then outstanding of Borrower
ordinarily entitled to vote in the election of directors, empowering such
"person" or "group" to elect a majority of the Board of Directors of Borrower,
who did not have such power before such transaction.

               "Closing Date" means the date of this Agreement.

               "Code" means the California Uniform Commercial Code.

               "Collateral" means the property described on Exhibit A attached
hereto.

               "Committed Revolving Line" means a credit extension of up to One
Million Dollars ($1,000,000).

               "Contingent Obligation" means, as applied to any Person, any
direct or indirect liability, contingent or otherwise, of that Person with
respect to (i) any indebtedness, lease, dividend, letter of credit or other
obligation of another, including, without limitation, any such obligation
directly or indirectly guaranteed, endorsed, co-made or discounted or sold with
recourse by that Person, or in respect of which that Person is otherwise
directly or indirectly liable; (ii) any obligations with respect to undrawn
letters of credit, corporate credit cards, or merchant services issued or
provided FOR the account of that Person; and (iii) all obligations arising under
any interest rate, currency or commodity swap agreement, interest rate cap
agreement, interest rate collar agreement, or other agreement or arrangement
designed to protect such Person against fluctuation in interest rates, currency
exchange rates or commodity prices; provided, however, that the term "Contingent
Obligation" shall not include endorsements for collection or deposit in the
ordinary course of business. The amount of any Contingent Obligation shall be
deemed to be an amount equal to the stated or determined amount of the primary
obligation in respect of which such Contingent Obligation is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect
thereof as determined by such Person in good faith; provided, however, that such
amount shall not in any event exceed the maximum amount of the obligations under
the guarantee or other support arrangement.

               "Copyrights" means any and all copyright rights, copyright
applications, copyright registrations and like protections 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.

               "Credit Extension" means each Advance, Letter of Credit, or any
other extension of credit by Bank for the benefit of Borrower hereunder.

               "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.

               "Daily Balance" means the amount of the Obligations owed at the
end of a given day.

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               "Eligible Accounts" means those Accounts that arise in the
ordinary course of Borrower's business that comply with all of Borrower's
representations and warranties to Bank set forth in Section 5.4; provided, that
standards of eligibility may be fixed and revised from time to time by Bank in
Bank's reasonable judgment and upon notification thereof to Borrower in
accordance with the provisions hereof. Unless otherwise agreed to by Bank,
Eligible Accounts shall not include the following:

               (a) Accounts that the account debtor has failed to pay within
ninety (90) days of invoice date;

               (b) Accounts with respect to an account debtor, twenty-five
percent (25%) of whose Accounts the account debtor has failed to pay within
ninety (90) days of invoice date;

               (c) Accounts with respect to which the account debtor is an
officer, employee, or agent of Borrower;

               (d) Accounts with respect to which goods are placed on
consignment, guaranteed sale, sale or return, sale on approval, bill and hold,
or other terms by reason of which the payment by the account debtor may be
conditional;

               (e) Accounts with respect to which the account debtor is an
Affiliate of Borrower;

               (f) Accounts with respect to which the account debtor does not
have its principal place of business in the United States, except for Eligible
Foreign Accounts;

               (g) Accounts with respect to which the account debtor is the
United States or any department, agency, or instrumentality of the United States
except for Accounts of the United States if the payee has assigned its payment
rights to Bank and the assignment has been acknowledged under the Assignment of
Claims Act of 1940(31 U.S.C. 3727);

               (h) Accounts with respect to which Borrower is liable to the
account debtor for goods sold or services rendered by the account debtor to
Borrower or for deposits or other property of the account debtor held by
Borrower, but only to the extent of any amounts owing to the account debtor
against amounts owed to Borrower;

               (i) Accounts with respect to an account debtor, including
Subsidiaries and Affiliates, whose total obligations to Borrower exceed
twenty-five percent (25%) of all Accounts, to the extent such obligations exceed
the aforementioned percentage, except as approved in writing by Bank;

               (j) Accounts with respect to which the account debtor disputes
liability or makes any claim with respect thereto as to which Bank believes, in
its sole discretion, that there may be a basis for dispute (but only to the
extent of the amount subject to such dispute or claim), or is subject to any
Insolvency Proceeding, or becomes insolvent, or goes out of business; and

               (k) Accounts the collection of which Bank reasonably determines
to be doubtful.

               "Eligible Foreign Accounts" means Accounts with respect to which
the account debtor does not have its principal place of business in the United
States and that (i) are supported by one or more letters of credit in an amount
and of a tenor, and issued by a financial institution, acceptable to Bank, or
(ii) that Bank approves on a case-by-case basis.

               "Equipment" means all present and future machinery, equipment,
tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments
in which Borrower has any interest.

               "ERISA" means the Employee Retirement Income Security Act of
1974, as amended, and the regulations thereunder.

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               "Event of Default" has the meaning assigned in Article 8.

               "Financing Event" means the receipt by Borrower after the date of
this Agreement of cash proceeds in an aggregate amount of at least Two Million
Five Hundred Thousand Dollars ($2,500,000), in one or more transactions, on or
before March 31, 2005 from the sale and issuance of its equity securities to
investors.

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

               "Indebtedness" means (a) all indebtedness for borrowed money or
the deferred purchase price of property or services, including without
limitation reimbursement and other obligations with respect to surety bonds and
letters of credit, (b) all obligations evidenced by notes, bonds, debentures or
similar instruments, (c) all capital lease obligations and (d) all Contingent
Obligations.

               "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.

               "Intellectual Property" means all of Borrower's right, title, and
interest in and to the following:

               (a) Copyrights, Trademarks and Patents;

               (b) 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;

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

               (d) Any and all claims for damages by way of past, present and
future infringement 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;

               (e) All 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;

               (f) All amendments, renewals and extensions of any of the
Copyrights, Trademarks or Patents; and

               (g) All 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.

               "Inventory" means all present and future inventory in which
Borrower has any interest, including merchandise, raw materials, parts,
supplies, packing and shipping materials, work in process and finished products
intended for sale or lease or to be furnished under a contract of service, of
every kind and description now or at any time hereafter owned by or in the
custody or possession, actual or constructive, of Borrower, including such
inventory as is temporarily out of its custody or possession or in transit and
including any returns upon any accounts or other proceeds, including insurance
proceeds, resulting from the sale or disposition of any of the foregoing and any
documents of title representing any of the above, and Borrower's Books relating
to any of the foregoing.

               "Investment" means any beneficial ownership of (including stock,
partnership interest or other securities) any Person, or any loan, advance or
capital contribution to any Person.

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               "IRC" means the Internal Revenue Code of 1986, as amended, and
the regulations thereunder.

               "Lien" means any mortgage, lien, deed of trust, charge, pledge,
security interest or other encumbrance.

               "Loan Documents" means, collectively, this Agreement, any note or
notes executed by Borrower, and any other agreement entered into in connection
with this Agreement, all as amended or extended from time to time.

               "Material Adverse Effect" means a material adverse effect on (i)
the business operations or condition (financial or otherwise) of Borrower and
its Subsidiaries taken as a whole, other than in accordance with forecasts or
projections delivered by Borrower to Bank as of the Closing Date or (ii) the
ability of Borrower to repay the Obligations or otherwise perform its
obligations under the Loan Documents.

               "Negotiable Collateral" means all of Borrower's present and
future letters of credit of which it is a beneficiary, notes, drafts,
instruments, securities, documents of title, and chattel paper, and Borrower's
Books relating to any of the foregoing. \

               "Obligations" means all debt, principal, interest, Bank Expenses
and other amounts owed to Bank by Borrower pursuant to this Agreement or any
other agreement, whether absolute or contingent, due or to become due, now
existing or hereafter arising, including any interest that accrues after the
commencement of an Insolvency Proceeding.

               "Patents" means all patents, patent applications and like
protections including without limitation improvements, divisions, continuations,
renewals, reissues, extensions and continuations-in-part of the same.

               "Periodic Payments" means all installments or similar recurring
payments that Borrower may now or hereafter become obligated to pay to Bank
pursuant to the terms and provisions of any instrument, or agreement now or
hereafter in existence between Borrower and Bank.

               "Permitted Indebtedness" means:

               (a) Indebtedness of Borrower in favor of Bank arising under this
Agreement or any other Loan Document;

               (b) Indebtedness existing on the Closing Date and disclosed in
the Schedule;

               (c) Indebtedness secured by a lien described in clause (c) of the
defined term "Permitted Liens," provided such Indebtedness (i) does not exceed
the lesser of the cost or fair market value of the equipment financed with such
Indebtedness and (ii) does not exceed $1,500,000 in the aggregate at any given
time; and

               (d) Subordinated Debt.

               "Permitted Investment" means:

               (a) Investments existing on the Closing Date disclosed in the
Schedule;

               (b) (i) marketable direct obligations issued or unconditionally
guaranteed by the United States of America or any agency or any State thereof
maturing within one (1) year from the date of acquisition thereof, (ii)
commercial paper maturing no more than one (1) year from the date of creation
thereof and currently having rating of at least A-2 or P-2 from either Standard
& Poor's Corporation or Moody's Investors

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Service, (iii) certificates of deposit maturing no more than one (1) year from
the date of investment therein issued by Bank and (iv) Bank's money market
accounts;

               (c) Investments made in accordance with Borrower's investment
policy, as approved by its Board of Directors, which policy (and any amendments
thereto) shall be previously approved by Bank; and

               (d) other Investments not to exceed $100,000 in the aggregate at
any given time.

               "Permitted Liens" means the following:

               (a) Any Liens existing on the Closing Date and disclosed in the
Schedule or arising under this Agreement or the other Loan Documents;

               (b) Liens for taxes, fees, assessments or other governmental
charges or levies, either not delinquent or being contested in good faith by
appropriate proceedings, provided the same have no priority over any of Bank's
security interests;

               (c) Liens (i) upon or in any equipment acquired or held by
Borrower or any of its Subsidiaries to secure the purchase price of such
equipment or indebtedness incurred solely for the purpose of financing the
acquisition of such equipment, or (ii) existing on such equipment at the time of
its acquisition. provided that the Lien is confined solely to the property so
acquired and improvements thereon, and the proceeds of such equipment;

               (d) Liens incurred in connection with the extension, renewal or
refinancing of the indebtedness secured by Liens of the type described in
clauses (a) through (c) above, provided that any extension, renewal or
replacement Lien shall be limited to the property encumbered by the existing
Lien and the principal amount of the indebtedness being extended, renewed or
refinanced does not increase; and

               (e) other Liens which in the aggregate do not encumber property
which in the aggregate exceeds $50,000 in value.

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

               "Prime Rate" means the variable rate of interest, per annum, most
recently announced by Bank, as its "prime rate," whether or not such announced
rate is the lowest rate available from Bank.

               "Responsible Officer" means each of the Chief Executive Officer,
the Chief Operating Officer, the Chief Financial Officer and the Controller of
Borrower.

               "Revolving Facility" means the facility under which Borrower may
request Bank to issue Advances, as specified in Section 2.l(a) hereof.

               "Revolving Maturity Date" means March 31, 2005.

               "Schedule" means the schedule of exceptions attached hereto, if
any.

               "Subordinated Debt" means any debt incurred by Borrower that is
subordinated to the debt owing by Borrower to Bank on terms reasonably
acceptable to Bank (and identified as being such by Borrower and Bank).

               "Subsidiary" means any corporation, company or partnership in
which (i) any general partnership interest or (ii) more than 50% of the stock or
other units of ownership which by the terms thereof has the

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ordinary voting power to elect the Board of Directors, managers or trustees of
the entity, at the time as of which any determination is being made, is owned by
Borrower, either directly or through an Affiliate.

               "Trademarks" means 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.

          1.2 Accounting Terms. All accounting terms not specifically defined
herein shall be construed in accordance with GAAP and all calculations made
hereunder shall be made in accordance with GAAP. When used herein, the terms
"financial statements" shall include the notes and schedules thereto.

     2.   LOAN AND TERMS OF PAYMENT.

          2.1 Credit Extensions.

               Borrower promises to pay to the order of Bank, in lawful money of
the United States of America, the aggregate unpaid principal amount of all
Credit Extensions made by Bank to Borrower hereunder. Borrower shall also pay
interest on the unpaid principal amount of such Credit Extensions at rates in
accordance with the terms hereof.

               (a) Revolving Advances.

                    (i) Subject to and upon the terms and conditions of this
Agreement, Borrower may request Advances in an aggregate outstanding amount not
to exceed the lesser of (i) the Committed Revolving Line or (ii) the Borrowing
Base, minus, in each case, the aggregate face amount of all outstanding Letters
of Credit. Subject to the terms and conditions of this Agreement, amounts
borrowed pursuant to this Section 2.1(a) may be repaid and reborrowed at any
time prior to the Revolving Maturity Date, at which time all Advances under this
Section 2.1(a) shall be immediately due and payable. Borrower may prepay any
Advances without penalty or premium.

                    (ii) Whenever Borrower desires an Advance, Borrower will
notify Bank by facsimile transmission or telephone no later than 3:30 p.m.
Eastern time, on the Business Day prior to the Business Day that the Advance is
to be made. Each such notification shall be promptly confirmed by a
Payment/Advance Form in substantially the form of Exhibit B hereto. Bank is
authorized to make Advances under this Agreement, based upon instructions
received from a Responsible Officer or a designee of a Responsible Officer, or
without instructions if in Bank's discretion such Advances are necessary to meet
Obligations which have become due and remain unpaid. Bank shall be entitled to
rely on any telephonic notice given by a person who Bank reasonably believes to
be a Responsible Officer or a designee thereof, and Borrower shall indemnify and
hold Bank harmless for any damages or loss suffered by Bank as a result of such
reliance, except for damages or losses, caused by Bank's gross negligence or
willful misconduct. Bank will credit the amount of Advances made under this
Section 2.l(a) to Borrower's deposit account.

               (b) Letters of Credit.

                    (i) Subject to the terms and conditions of this Agreement,
at any time prior to the Revolving Maturity Date, Bank agrees to issue or cause
to be issued letters of credit for the account of Borrower (each, a "Letter of
Credit" and collectively, the "Letters of Credit") in an aggregate outstanding
face amount not to exceed the lesser of the Committed Revolving Line or the
Borrowing Base minus, in each case, the aggregate amount of the outstanding
Advances at any time, provided that the aggregate face amount of all outstanding
Letters of Credit shall not exceed $250,000. 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 of standard application and
letter of credit agreement (the "Application"), which Borrower hereby agrees to
execute. On any drawn but unreimbursed Letter of Credit, the unreimbursed amount
shall be deemed an Advance under Section 2.1(a). Prior to the Revolving Maturity
Date, Borrower shall secure in cash all obligations under any outstanding
Letters of Credit on terms acceptable to Bank.

                    (ii) The obligation of Borrower to reimburse Bank for
drawings made under Letters of Credit shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of
this Agreement, the Application, and such Letters of Credit, under all
circumstances

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whatsoever. Borrower shall indemnify, defend, protect, and hold Bank harmless
from any loss, cost, expense or liability, including, without limitation,
reasonable attorneys' fees, arising out of or in connection with any Letters of
Credit, except for expenses caused by Bank's gross negligence or willful
misconduct.

               (c) Lockbox Account. Borrower shall maintain at all times with
Bank an account (the "Lock Box Account") into which all funds received by
Borrower from any source shall immediately be deposited. Borrower shall direct
all customers to mail or deliver all checks or other forms of payment for
amounts owing to Borrower to a post office box designated by Bank, over which
Bank shall have exclusive and unrestricted access. Bank shall collect the mail
delivered to such post office box, open such mail, and endorse and credit all
items to the Lock Box Account. Borrower shall direct all customers or other
persons owing money to Borrower who make payments by electronic transfer of
funds to wire such funds directly to the Lock Box Account. Borrower shall hold
in trust for Bank all amounts that Borrower receives despite the directions to
make payments to the post office box or Lock Box Account, and immediately
deliver such payments to Bank in their original form as received from the
customer, with proper endorsements for deposit into the Lock Box Account.
Borrower irrevocably authorizes Bank to transfer to the Lock Box Account any
funds that have been deposited into any other accounts or that Bank has received
by wire transfer, check, cash, or otherwise. Borrower shall not establish or
maintain any accounts with any Person other than Bank except for accounts opened
in the ordinary course of business from which all funds are transferred on a
daily basis to the Lock Box Account. Bank shall have all right, title and
interest in all of the items from time to time in the Lock Box Account and their
proceeds as may be necessary to satisfy outstanding Obligations. Except for
amounts held in the Lock Box Account that exceed the outstanding balance of the
Obligations, if any, neither Borrower nor any person claiming through Borrower
shall have any right or control over the use of, or any right to withdraw any
amount from, the Lock Box Account, which shall be under the sole control of
Bank. Bank shall move all amounts in such Lock Box Account to Borrower's
operating account at Bank on a daily basis. Upon the occurrence and during the
continuance of an Event of Default, Bank shall apply all amounts in such Lock
Box Account to the outstanding balance of the Obligations.

          2.2 Interest Rates. Payments, and Calculations.

               (a) Interest Rates. Except as set forth in Section 2.2(b), the
Advances shall bear interest, on the outstanding Daily Balance thereof, at a
rate equal to one percent (1.00%) above the Prime Rate.

               (b) Late Fee: Default Rate. If any payment is not made within ten
(10) days after the date such payment is due, Borrower shall pay Bank a late fee
equal to the lesser of (i) five percent (5%) of the amount of such unpaid amount
or (ii) the maximum amount permitted to be charged under applicable law. All
Obligations shall bear interest, from and after the occurrence and during the
continuance of an Event of Default, at a rate equal to five (5) percentage
points above the interest rate applicable immediately prior to the occurrence of
the Event of Default.

               (c) Payments. Interest hereunder shall be due and payable on the
first calendar day of each month during the term hereof. Bank shall, at its
option, charge such interest, all Bank Expenses, and all Periodic Payments
against any of Borrower's deposit accounts or against the Committed Revolving
Line, in which case those amounts shall thereafter accrue interest at the rate
then applicable hereunder. Any interest not paid when due shall be compounded by
becoming a part of the Obligations, and such interest shall thereafter accrue
interest at the rate then applicable hereunder.

               (d) Computation. In the event the Prime Rate is changed from time
to time hereafter, the applicable rate of interest hereunder shall be increased
or decreased, effective as of the day the Prime Rate is changed, by an amount
equal to such change in the Prime Rate. All interest chargeable under the Loan
Documents shall be computed on the basis of a three hundred sixty (360) day year
for the actual number of days elapsed.

          2.3 Crediting Payments. Prior to the occurrence of an Event of
Default, Bank shall credit a wire transfer of funds, check or other item of
payment to such deposit account or Obligation as Borrower specifies. During the
existence of an Event of Default, the receipt by Bank of any wire transfer of
funds, check, or other item of payment shall be immediately applied to
conditionally reduce Obligations, but shall not be considered a payment on
account unless such payment is of immediately available federal funds or unless
and until such check or other

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item of payment is honored when presented for payment. Notwithstanding anything
to the contrary contained herein, any wire transfer or payment received by Bank
after 3:30 p.m. Eastern time shall be deemed to have been received by Bank as of
the opening of business on the immediately following Business Day. Whenever any
payment to Bank under the Loan Documents would otherwise be due (except by
reason of acceleration) on a date that is not a Business Day, such payment shall
instead be due on the next Business Day, and additional fees or interest, as the
case may be, shall accrue and be payable for the period of such extension.

          2.4 Fees. Borrower shall pay to Bank all Bank Expenses, including
reasonable attorneys' fees and expenses, as and when they become due.

          2.5 Additional Costs. In case any law, regulation, treaty or official
directive or the interpretation or application thereof by any court or any
governmental authority charged with the administration thereof or the compliance
with any guideline or request of any central bank or other governmental
authority (whether or not having the force of law):

               (a) subjects Bank to any tax with respect to payments of
principal or interest or any other amounts payable hereunder by Borrower or
otherwise with respect to the transactions contemplated hereby (except for taxes
on the overall net income of Bank imposed by the United States of America or any
political subdivision thereof);

               (b) imposes, modifies or deems applicable any deposit insurance,
reserve, special deposit or similar requirement against assets held by, or
deposits in or for the account of, or loans by, Bank; or

               (c) imposes upon Bank any other condition with respect to its
performance under this Agreement,

and the result of any of the foregoing is to increase the cost to Bank, reduce
the income receivable by Bank or impose any expense upon Bank with respect to
the Obligations, Bank shall notify Borrower thereof. Borrower agrees to pay to
Bank the amount of such increase in cost, reduction in income or additional
expense as and when such cost, reduction or expense is incurred or determined,
upon presentation by Bank of a statement of the amount and setting forth Bank's
calculation thereof, all in reasonable detail, which statement shall be deemed
true and correct absent manifest error.

          2.6 Term. This Agreement shall become effective on the Closing Date
and, subject to Section 12.7, shall continue in full force and effect for so
long as any Obligations remain outstanding or Bank has any obligation to make
Credit Extensions under this Agreement. Notwithstanding the foregoing, Bank
shall have the right to terminate its obligation to make Credit Extensions under
this Agreement immediately and without notice upon the occurrence and during the
continuance of an Event of Default. Notwithstanding termination, Bank's Lien on
the Collateral shall remain in effect for so long as any Obligations are
outstanding.

          2.7 Overadvances. If the aggregate amount of the outstanding Advances
plus the aggregate face amount of all outstanding Letters of Credit exceeds the
lesser of the Committed Revolving Line or the Borrowing Base at any time,
Borrower shall immediately pay to Bank, in cash, the amount of such excess.

     3.   CONDITIONS OF LOANS.

          3.1 Conditions Precedent to Initial Credit Extension. The obligation
of Bank to make the initial Credit Extension after the Closing Date is subject
to the condition precedent that Bank shall have received, in form and substance
satisfactory to Bank, the following:

               (a) this Agreement;

               (b) a certificate of the Secretary of Borrower with respect to
incumbency and resolutions authorizing the execution and delivery of this
Agreement;

                                        9

<PAGE>

               (c) Amendments to Control Agreements:

               (d) a nonrefundable amendment fee equal to $5,000. which shall be
fully earned and nonrefundable as of the date hereof plus an amount equal to all
Bank Expenses incurred, through the date of this Agreement: and

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

          3.2 Conditions Precedent to all Credit Extensions. The obligation of
Bank to make each Credit Extension, including the initial Credit Extension, is
further subject to the following conditions:

               (a) timely receipt by Bank of the Payment/Advance Form as
provided in Section 2.1:

               (b) the representations and warranties contained in Section 5
shall be true and correct in all material respects on and as of the date of such
Payment/Advance Form and on the effective date of each Credit Extension as
though made at and as of each such date, and no Event of Default shall have
occurred and be continuing, or would exist after giving effect to such Credit
Extension (provided, however, that those representations and warranties
expressly referring to another date shall be true, correct and complete in all
material respects as of such date). The making of each Credit Extension shall be
deemed to be a representation and warranty by Borrower on the date of such
Credit Extension as to the accuracy of the facts referred to in this Section
3.2.

     4.   CREATION OF SECURITY INTEREST.

          4.1 Grant of Security Interest. Borrower grants and pledges to Bank a
continuing security interest in all presently existing and hereafter acquired or
arising Collateral in order to secure prompt repayment of any and all
Obligations and in order to secure prompt performance by Borrower of each of its
covenants and duties under the Loan Documents. Except as set forth in the
Schedule, such security interest constitutes a valid, first priority security
interest in the presently existing Collateral, and will constitute a valid,
first priority security interest in Collateral acquired after the date hereof.
Borrower also hereby agrees not to sell, transfer, assign, mortgage, pledge,
lease, grant a security interest in, or encumber any of its intellectual
property, provided that Borrower may grant licenses of its intellectual property
in the ordinary course of its business.

          4.2 Delivery of Additional Documentation Required. Borrower shall from
time to time execute and deliver to Bank, at the request of Bank, all Negotiable
Collateral, all financing statements and other documents that Bank may
reasonably request, in form satisfactory to Bank, to perfect and continue
perfected Bank's security interests in the Collateral and in order to fully
consummate all of the transactions contemplated under the Loan Documents.

          4.3 Right to Inspect. Bank (through any of its officers, employees, or
agents) shall have the right, upon reasonable prior notice, from time to time
during Borrower's usual business hours but no more than once a year (unless an
Event of Default has occurred and is continuing), to inspect Borrower's Books
and to make copies thereof and to check, test, and appraise the Collateral in
order to verify Borrower's financial condition or the amount, condition of, or
any other matter relating to, the Collateral.

     5.   REPRESENTATIONS AND WARRANTIES.

          Borrower represents and warrants as follows:

          5.1 Due Organization and Qualification. Borrower and each Subsidiary
is a corporation duly existing under the laws of its state of incorporation and
qualified and licensed to do business in any state in which the conduct of its
business or its ownership of property requires that it be so qualified.

                                       10

<PAGE>

          5.2 Due Authorization; No Conflict. The execution, delivery, and
performance of the Loan Documents are within Borrower's powers, have been duly
authorized, and are not in conflict with nor constitute a breach of any
provision contained in Borrower's Certificate of Incorporation or Bylaws, nor
will they constitute an event of default under any material agreement to which
Borrower is a party or by which Borrower is bound. Borrower is not in default
under any agreement to which it is a party or by which it is bound, which
default could have a Material Adverse Effect.

          5.3 No Prior Encumbrances. Borrower has good and marketable title to
the Collateral, free and clear of Liens, except for Permitted Liens.

          5.4 Bona Fide Eligible Accounts. The Eligible Accounts are bona fide
existing obligations. The property and services giving rise to such Eligible
Accounts has been delivered or rendered to the account debtor or to the account
debtor's agent for immediate and unconditional acceptance by the account debtor.
Borrower has not received notice of actual or imminent Insolvency Proceeding of
any account debtor that is included in any Borrowing Base Certificate as an
Eligible Account.

          5.5 Merchantable Inventory. All Inventory is in all material respects
of good and marketable quality, free from all material defects, except for
Inventory for which adequate reserves have been made.

          5.6 Intellectual Property. Borrower is the sole owner of the
Intellectual Property, except for non-exclusive licenses granted by Borrower to
its customers in the ordinary course of business. Each of the Patents is valid
and enforceable, and no part of the Intellectual Property has been judged
invalid or unenforceable, in whole or in part, and no claim has been made that
any part of the Intellectual Property violates the rights of any third party.
Except as set forth in the Schedule, Borrower's rights as a licensee of
intellectual property do not give rise to more than five percent (5%) of its
gross revenue in any given month, including without limitation revenue derived
from the sale, licensing, rendering or disposition of any product or service.
Except as set forth in the Schedule, Borrower is not a party to, or bound by,
any agreement that restricts the grant by Borrower of a security interest in
Borrower's rights under such agreement.

          5.7 Name; Location of Chief Executive Office. Except as disclosed in
the Schedule, Borrower has not done business under any name other than that
specified on the signature page hereof. The chief executive office of Borrower
is located at the address indicated in Section 10 hereof. All Borrower's
Inventory and Equipment is located only at the location set forth in Section 10
hereof.

          5.8 Litigation. Except as set forth in the Schedule, there are no
actions or proceedings pending by or against Borrower or any Subsidiary before
any court or administrative agency in which an adverse decision could have a
Material Adverse Effect, or a material adverse effect on Borrower's interest or
Bank's security interest in the Collateral.

          5.9 No Material Adverse Change in Financial Statements. All
consolidated financial statements related to Borrower and any Subsidiary that
are delivered by Borrower to Bank fairly present in all material respects
Borrower's consolidated financial condition as of the date thereof and
Borrower's consolidated results of operations for the period then ended. There
has not been a material adverse change in the consolidated financial condition
of Borrower since the date of the most recent of such financial statements
submitted to Bank.

          5.10 Solvency, Payment of Debts. Borrower is solvent and able to pay
its debts (including trade debts) as they mature.

          5.11 Regulatory Compliance. Borrower and each Subsidiary have met the
minimum funding requirements of ERISA with respect to any employee benefit plans
subject to ERISA. No event has occurred resulting from Borrower's failure to
comply with ERISA that is reasonably likely to result in Borrower's incurring
any liability that could have a Material Adverse Effect. Borrower is not an
"investment company" or a company "controlled" by an "investment company" within
the meaning of the Investment Company Act of 1940. Borrower is not engaged
principally, or as one of the important activities, in the business of extending
credit for the purpose of purchasing or carrying margin stock (within the
meaning of Regulations T and U of the Board of Governors of the

                                       11

<PAGE>

Federal Reserve System). Borrower has complied with all the provisions of the
Federal Fair Labor Standards Act. Borrower has not violated any statutes, laws,
ordinances or rules applicable to it, violation of which could have a Material
Adverse Effect.

          5.12 Environmental Condition. Except as disclosed in the Schedule,
none of Borrower's or any Subsidiary's properties or assets has ever been used
by Borrower or any Subsidiary or, to the best of Borrower's knowledge, by
previous owners or operators, in the disposal of, or to produce, store, handle,
treat, release, or transport, any hazardous waste or hazardous substance other
than in accordance with applicable law; to the best of Borrower's knowledge,
none of Borrower's properties or assets has ever been designated or identified
in any manner pursuant to any environmental protection statute as a hazardous
waste or hazardous substance disposal site, or a candidate for closure pursuant
to any environmental protection statute; no lien arising under any environmental
protection statute has attached to any revenues or to any real or personal
property owned by Borrower or any Subsidiary; and neither Borrower nor any
Subsidiary has received a summons, citation, notice, or directive from the
Environmental Protection Agency or any other federal, state or other
governmental agency concerning any action or omission by Borrower or any
Subsidiary resulting in the releasing, or otherwise disposing of hazardous waste
or hazardous substances into the environment.

          5.13 Taxes. Borrower and each Subsidiary have filed or caused to be
filed all tax returns required to be filed, and have paid, or have made adequate
provision for the payment of, all taxes reflected therein.

          5.14 Subsidiaries. Borrower does not own any stock, partnership
interest or other equity securities of any Person, except for Permitted
Investments.

          5.15 Government Consents. Borrower and each Subsidiary have obtained
all consents, approvals and authorizations of, made all declarations or filings
with, and given all notices to, all governmental authorities that are necessary
for the continued operation of Borrower's business as currently conducted, the
failure to obtain which could have a Material Adverse Effect.

          5.16 Investment Accounts. No more than $50,000 of Borrower's property
in the aggregate is maintained or invested with a Person other than Bank.

          5.17 Full Disclosure. No representation, warranty or other statement
made by Borrower in any certificate or written statement furnished to Bank
contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements contained in such certificates or
statements not misleading.

     6.   AFFIRMATIVE COVENANTS.

          Borrower covenants and agrees that, until payment in full of all
outstanding Obligations, and for so long as Bank may have any commitment to make
a Credit Extension hereunder, Borrower shall do all of the following:

          6.1 Good Standing. Borrower shall maintain its and each of its
Subsidiaries' corporate existence in its jurisdiction of incorporation and
maintain qualification in each jurisdiction in which the failure to so qualify
could have a Material Adverse Effect. Borrower shall maintain, and shall cause
each of its Subsidiaries to maintain, in force all licenses, approvals and
agreements, the loss of which could have a Material Adverse Effect.

          6.2 Government Compliance. Borrower shall meet, and shall cause each
Subsidiary to meet, the minimum funding requirements of ERISA with respect to
any employee benefit plans subject to ERISA. Borrower shall comply, and shall
cause each Subsidiary to comply, with all statutes, laws, ordinances and
government rules and regulations to which it is subject, noncompliance with
which could have a Material Adverse Effect, or a material adverse effect on the
Collateral or the priority of Bank's Lien on the Collateral.

          6.3 Financial Statements, Reports, Certificates. Borrower shall
deliver to Bank: (a) as soon as available, but in any event within thirty (30)
days after the end of each calendar month, a company prepared

                                       12

<PAGE>

consolidated balance sheet and income statement covering Borrower's consolidated
operations during such period. prepared in accordance with GAAP. consistently
applied, in a form acceptable to Bank and certified by a Responsible Officer;
(b) as soon as available, but in any event within one hundred twenty (120) days
after the end of Borrower's fiscal year, audited consolidated financial
statements of Borrower prepared in accordance with GAAP. consistently applied,
together with an unqualified opinion on such financial statements of an
independent certified public accounting firm reasonably acceptable to Bank,
provided that such financial statements for the fiscal year ended December 31,
2003 shall be delivered to Bank on or before June 30, 2004; (c) if applicable,
copies of all statements, reports and notices sent or made available generally
by Borrower to its security holders or to any holders of Subordinated Debt and
all reports on Forms 10-K and 10-Q filed with the Securities and Exchange
Commission; (d) promptly upon receipt of notice thereof, a report of any legal
actions pending or threatened against Borrower or any Subsidiary that could
result in damages or costs to Borrower or any Subsidiary of One Hundred Thousand
Dollars ($100.000) or more; and (e) such budgets, sales projections, operating
plans or other financial information as Bank may reasonably request from time to
time generally prepared by Borrower in the ordinary course of business.

     Borrower shall deliver to Bank with the monthly financial statements, a
Compliance Certificate signed by a Responsible Officer in substantially the form
of Exhibit C hereto.

     Borrower shall deliver to Bank, on the first and the fifteenth day of each
month, a Borrowing Base Certificate signed by a Responsible Officer in
substantially the form of Exhibit D hereto, together with aged listings of
accounts receivable and accounts payable.

     Bank shall have a right from time to time hereafter to audit Borrower's
Accounts and appraise Collateral at Borrower's expense, provided that such
audits will be conducted no more often than every six (6) months thereafter
unless an Event of Default has occurred and is continuing.

          6.4 Inventory; Returns. Borrower shall keep all Inventory in good and
marketable condition, free from all material defects except for Inventory for
which adequate reserves have been made. Returns and allowances, if any, as
between Borrower and its account debtors shall be on the same basis and in
accordance with the usual customary practices of Borrower, as they exist at the
time of the execution and delivery of this Agreement. Borrower shall promptly
notify Bank of all returns and recoveries and of all disputes and claims, where
the return, recovery, dispute or claim involves more than One Hundred Thousand
Dollars ($100,000).

          6.5 Taxes. Borrower shall make, and shall cause each Subsidiary to
make, due and timely payment or deposit of all material federal, state, and
local taxes, assessments, or contributions required of it by law, and will
execute and deliver to Bank, on demand, appropriate certificates attesting to
the payment or deposit thereof; and Borrower will make, and will cause each
Subsidiary to make, timely payment or deposit of all material tax payments and
withholding taxes required of it by applicable laws, including, but not limited
to, those laws concerning F.I.C.A., F.U.T.A., state disability, and local,
state, and federal income taxes, and will, upon request, furnish Bank with proof
satisfactory to Bank indicating that Borrower or a Subsidiary has made such
payments or deposits; provided that Borrower or a Subsidiary need not make any
payment if the amount or validity of such payment is contested in good faith by
appropriate proceedings and is reserved against (to the extent required by GAAP)
by Borrower.

          6.6 Insurance.

               (a) Borrower, at its expense, shall keep the Collateral insured
against loss or damage by fire, theft, explosion, sprinklers, and all other
hazards and risks, and in such amounts, as ordinarily insured against by other
owners in similar businesses conducted in the locations where Borrower's
business is conducted on the date hereof. Borrower shall also maintain insurance
relating to Borrower's business and ownership and use of the Collateral in
amounts and of a type that are customary to businesses similar to Borrower's.

               (b) All such policies of insurance shall be in such form, with
such companies, and in such amounts as reasonably satisfactory to Bank. All such
policies of property insurance shall contain a lender's loss payable
endorsement, in a form satisfactory to Bank, showing Bank as an additional loss
payee thereof, and all liability insurance policies shall show the Bank as an
additional insured and shall specify that the insurer must give at least twenty
(20) days notice to Bank before canceling its policy for any reason. Upon Bank's
request, Borrower

                                       13

<PAGE>

shall deliver to Bank certified copies of such policies of insurance and
evidence of the payments of all premiums therefor. All proceeds payable under
any such policy shall, at the option of Bank, be payable to Bank to be applied
on account of the Obligations.

          6.7 Principal Depository. Except for up to $15,000 in the aggregate at
any time in its petty cash accounts. Borrower shall maintain and shall cause
each of its Subsidiaries to maintain its depository, operating, and investment
accounts with Bank and/or Comerica Securities, Inc.

          6.8 New Equity. Borrower shall receive new cash proceeds in a net
amount of at least $l,000,000 from the sale and issuance of its equity
securities to its existing investors on or before July 31, 2004.

          6.9 Minimum Cash. Borrower shall maintain at all times unrestricted
cash at Bank in an amount equal to at least Seven Hundred Fifty Thousand Dollars
($750,000). Borrower authorizes Bank to decline to honor any checks, drafts or
other items of payment or directions to wire or otherwise transfer funds from
Bank if, after giving effect to the payment of any such item or transfer of such
funds. Borrower would not be in compliance with this Section, provided that such
authorization shall not extend to any request by Borrower to fund a payroll.

          6.10 Adjusted Quick Ratio. Borrower shall maintain at all times
through the Financing Event a ratio of (i) unrestricted cash at Bank plus eighty
percent (80%) of Eligible Accounts to (ii) Current Liabilities plus, to the
extent not already included therein, all Indebtedness (including without
limitation any Contingent Obligations) owing from Borrower to Bank less the
current portion of Borrower's capital leases (collectively, a "Quick Ratio"),
of at least 1.10 to 1.00. After the Financing Event, Borrower shall maintain at
all times a Quick Ratio of at least 1.40 to 1.00.

          6.11 Net Income; Net Loss. As of the last day of each month,
Borrower's net loss for the three months immediately preceding the date of
measurement shall not exceed the corresponding amount set forth in the following
table:

<TABLE>
<CAPTION>
THREE MONTHS ENDING   MAXIMUM NET LOSS
-------------------   ----------------
<S>                   <C>
   June 30, 2004         ($380,000)
   July 31, 2004         ($320,000)
  August 31, 2004        ($310,000)
September 30, 2004       ($280.000)
 October 31, 2004        ($230,000)
 November 30, 2004       ($200,000)
 December 31, 2004       ($100,000)
</TABLE>

     As of January 31, 2005 and as of the last day of each month thereafter,
Borrower's net income for the three months immediately preceding the date of
measurement shall be equal to or greater than One Dollar ($1.00).

     After the occurrence of the Financing Event, Borrower shall no longer be
required to comply with this Section.

          6.12 Intellectual Property Rights. Borrower shall register or cause
to be registered (to the extent not already registered) with the United States
Patent and Trademark Office or the United States Copyright Office, as the case
may be, those registerable intellectual property rights now owned or hereafter
developed or

                                       14

<PAGE>

acquired by Borrower, to the extent that Borrower, in its reasonable business
judgment, deems it appropriate to so protect such intellectual property rights.

          6.13 Further Assurances. At any time and from time to time Borrower
shall execute and deliver such further instruments and take such further action
as may reasonably be requested by Bank to effect the purposes of this Agreement.

     7.   NEGATIVE COVENANTS.

          Borrower covenants and agrees that, so long as any credit hereunder
shall be available and until payment in full of the outstanding Obligations or
for so long as Bank may have any commitment to make any Credit Extensions.
Borrower will not do any of the following:

          7.1 Dispositions. Convey, sell, lease, transfer or otherwise dispose
of (collectively, a "Transfer"), or permit any of its Subsidiaries to Transfer,
all or any part of its business or property, including its intellectual
property, without the Bank's prior written consent, other than: (i) Transfers of
Inventory in the ordinary course of business; (ii) Transfers of licenses and
similar arrangements for the use of the property of Borrower or its Subsidiaries
in the ordinary course of business; and (iii) Transfers of worn-out or obsolete
Equipment which was not financed by Bank.

          7.2 Change in Business; Change in Control or Executive Office. Engage
in any business; or permit any of its Subsidiaries to engage in any business,
other than the businesses currently engaged in by Borrower and any business
substantially similar or related thereto (or incidental thereto). Borrower will
not suffer or permit a Change in Control or without twenty (20) days prior
written notification to Bank, relocate its chief executive office or change its
legal name. Borrower will not change the date on which its fiscal year ends
without Bank's prior written consent;

          7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of
its Subsidiaries to merge or consolidate, with or into any other business
organization, or acquire, or permit any of its Subsidiaries to acquire, all or
substantially all of the capital stock or property of another Person.

          7.4 Indebtedness. Create, incur, assume or be or remain liable with
respect to any Indebtedness, or permit any Subsidiary so to do, other than
Permitted Indebtedness.

          7.5 Encumbrances. Create, incur, assume or suffer to exist any Lien
with respect to any of its property, including its intellectual property, or
assign or otherwise convey any right to receive income, including the sale of
any Accounts, or permit any of its Subsidiaries so to do, except for Permitted
Liens.

          7.6 Distributions. Pay any dividends (other than dividends payable
solely in Borrower's equity securities) or make any other distribution or
payment (other than distributions consisting solely of Borrower's equity
securities) on account of or in redemption, retirement or purchase of any
capital stock, or permit any of its Subsidiaries to do so, except that Borrower
may repurchase the stock of former employees pursuant to stock repurchase
agreements as long as an Event of Default does not exist prior to such
repurchase or would not exist after giving effect to such repurchase.
Notwithstanding the foregoing, Borrower may redeem its Series A Preferred Stock,
provided that all Obligations have previously been repaid to Bank and Bank has
no further obligation to make Credit Extensions hereunder.

          7.7 Investments. Directly or indirectly acquire or own, or make any
Investment in or to any Person, or permit any of its Subsidiaries so to do,
other than Permitted Investments. Maintain or invest any of its property with a
Person other than Bank unless such Person has entered into a control agreement
with Bank, in form and substance satisfactory to Bank.

          7.8 Transactions with Affiliates. Except in connection with Section
6.8 above and as part of the Financing Event, directly or indirectly enter into
or permit to exist any material transaction with any Affiliate of Borrower
except for transactions that are in the ordinary course of Borrower's business,
upon fair and reasonable

                                       15

<PAGE>

terms that are no less favorable to Borrower than would be obtained in an arm's
length transaction with a non-affiliated Person.

          7.9 Subordinated Debt. Make any payment in respect of any Subordinated
Debt, or permit any of its Subsidiaries to make any such payment, except in
compliance with the terms of such Subordinated Debt, or amend any provision
contained in any documentation relating to the Subordinated Debt without Bank's
prior written consent.

          7.10 Inventory and Equipment. Store the Inventory or the Equipment
with a bailee, warehouseman, or other third party unless the third party has
been notified of Bank's security interest and Bank (a) has received an
acknowledgment from the third party that it is holding or will hold the
Inventory or Equipment for Bank's benefit or (b) is in pledge possession of the
warehouse receipt, where negotiable, covering such Inventory or Equipment. Store
or maintain any Equipment or Inventory at a location other than the location set
forth in Section 10 of this Agreement.

          7.11 Compliance. Become an "investment company" or be controlled by an
"investment company," within the meaning of the Investment Company Act of 1940,
or become principally engaged in or undertake as one of its important
activities, the business of extending credit for the purpose of purchasing or
carrying margin stock, or use the proceeds of any Credit Extension for such
purpose. Fail to meet the minimum funding requirements of ERISA, permit a
Reportable Event or Prohibited Transaction, as defined in ERISA, to occur, fail
to comply with the Federal Fair Labor Standards Act or violate any law or
regulation, which violation could have a Material Adverse Effect, or a material
adverse effect on the Collateral or the priority of Bank's Lien on the
Collateral, or permit any of its Subsidiaries to do any of the foregoing.

          7.12 Negative Pledge Agreements. Permit the inclusion in any contract
to which it becomes a party of any provisions that could restrict or invalidate
the creation of a security interest in Borrower's rights and interests in any
Collateral.

     8.   EVENTS OF DEFAULT.

          Any one or more of the following events shall constitute an Event of
Default by Borrower under this Agreement:

          8.1 Payment Default. If Borrower fails to pay, when due, any of the
Obligations;

          8.2 Covenant Default.

               (a) If Borrower fails to perform any obligation under Article 6
or violates any of the covenants contained in Article 7 of this Agreement; or

               (b) If Borrower fails or neglects to perform or observe any other
material term, provision, condition, covenant contained in this Agreement, in
any of the Loan Documents, or in any other present or future agreement between
Borrower and Bank and as to any default under such other term, provision,
condition or covenant that can be cured, has failed to cure such default within
ten days after Borrower receives notice thereof or any officer of Borrower
becomes aware thereof; provided, however, that if the default cannot by its
nature be cured within the ten day period or cannot after diligent attempts by
Borrower be cured within such ten day period, and such default is likely to be
cured within a reasonable time, then Borrower shall have an additional
reasonable period (which shall not in any case exceed 30 days) to attempt to
cure such default, and within such reasonable time period the failure to have
cured such default shall not be deemed an Event of Default but no Credit
Extensions will be made.

          8.3 Material Adverse Change. If there occurs a material adverse change
in Borrower's business or financial condition, or if there is a material
impairment of the prospect of repayment of any portion of the Obligations or a
material impairment of the value or priority of Bank's security interests in the
Collateral;

                                       16

<PAGE>

          8.4 Attachment. If any material portion of Borrower's assets is
attached, seized, subjected to a writ or distress warrant, or is levied upon, or
comes into the possession of any trustee, receiver or person acting in a similar
capacity and such attachment, seizure, writ or distress warrant or levy has not
been removed, discharged or rescinded within ten (10) days, or if Borrower is
enjoined, restrained, or in any way prevented by court order from continuing to
conduct all or any material part of its business affairs, or if a judgment or
other claim becomes a lien or encumbrance upon any material portion of
Borrower's assets, or if a notice of lien, levy, or assessment is filed of
record with respect to any of Borrower's assets by the United States Government,
or any department, agency, or instrumentality thereof, or by any state, county,
municipal, or governmental agency, and the same is not paid within ten (10) days
after Borrower receives notice thereof, provided that none of the foregoing
shall constitute an Event of Default where such action or event is stayed or an
adequate bond has been posted pending a good faith contest by Borrower (provided
that no Credit Extensions will be required to be made during such cure period);

          8.5 Insolvency. If Borrower becomes insolvent, or if an Insolvency
Proceeding is commenced by Borrower, or if an Insolvency Proceeding is commenced
against Borrower and is not dismissed or stayed within thirty (30) days
(provided that no Credit Extensions will be made prior to the dismissal of such
Insolvency Proceeding);

          8.6 Other Agreements. If there is a default in any agreement to which
Borrower is a party with a third party or parties resulting in a right by such
third party or parties, whether or not exercised, to accelerate the maturity of
any Indebtedness in an amount in excess of One Hundred Thousand Dollars
($100,000) or that could have a Material Adverse Effect;

          8.7 Subordinated Debt. If Borrower makes any payment on account of
Subordinated Debt, except to the extent such payment is allowed under any
subordination agreement entered into with Bank;

          8.8 Judgments. If a judgment or judgments for the payment of money in
an amount, individually or in the aggregate, of at least One Hundred Thousand
Dollars ($100,000) shall be rendered against Borrower and shall remain
unsatisfied and unstayed for a period of ten (10) days (provided that no Credit
Extensions will be made prior to the satisfaction or stay of such judgment); or

          8.9 Misrepresentations. If any material misrepresentation or material
misstatement exists now or hereafter in any warranty or representation set forth
herein or in any certificate delivered to Bank by any Responsible Officer
pursuant to this Agreement or to induce Bank to enter into this Agreement or any
other Loan Document.

     9.   BANK'S RIGHTS AND REMEDIES.

          9.1 Rights and Remedies. Upon the occurrence and during the
continuance of an Event of Default, Bank may, at its election, without notice of
its election and without demand, do any one or more of the following, all of
which are authorized by Borrower:

               (a) Declare all Obligations, whether evidenced by this Agreement,
by any of the other Loan Documents, or otherwise, immediately due and payable
(provided that upon the occurrence of an Event of Default described in Section
8.5, all Obligations shall become immediately due and payable without any action
by Bank);

               (b) Cease advancing money or extending credit to or for the
benefit of Borrower under this Agreement or under any other agreement between
Borrower and Bank;

               (c) Settle or adjust disputes and claims directly with account
debtors for amounts, upon terms and in whatever order that Bank reasonably
considers advisable;

               (d) Make such payments and do such acts as Bank considers
necessary or reasonable to protect its security interest in the Collateral.
Borrower agrees to assemble the Collateral if Bank so requires, and to make the
Collateral available to Bank as Bank may designate. Borrower authorizes Bank to
enter the premises where the Collateral is located, to take and maintain
possession of the Collateral, or any part of it, and to pay, purchase, contest,
or compromise any encumbrance, charge, or lien which in Bank's determination
appears

                                       17

<PAGE>

to be prior or superior to its security interest and to pay all expenses
incurred in connection therewith. With respect to any of Borrower's owned
premises, Borrower hereby grants Bank a license to enter into possession of such
premises and to occupy the same, without charge, in order to exercise any of
Bank's rights or remedies provided herein, at law, in equity, or otherwise;

               (e) Set off and apply to the Obligations any and all (i) balances
and deposits of Borrower held by Bank, or (ii) indebtedness at any time owing to
or for the credit or the account of Borrower held by Bank;

               (f) Ship, reclaim, recover, store, finish, maintain, repair,
prepare for sale, advertise for sale, and sell (in the manner provided for
herein) the Collateral. Bank is hereby granted a license or other right, solely
pursuant to the provisions of this Section 9.1, to use, without charge,
Borrower's labels, patents, copyrights, rights of use of any name, trade
secrets, trade names, trademarks, service marks, and advertising matter, or any
property of a similar nature, as it pertains to the Collateral, in completing
production of, advertising for sale, and selling any Collateral and, in
connection with Bank's exercise of its rights under this Section 9.1, Borrower's
rights under ail licenses and all franchise agreements shall inure to Bank's
benefit;

               (g) Dispose of the Collateral by way of one or more contracts or
transactions, for cash or on terms, in such manner and at such places (including
Borrower's premises) as Bank determines is commercially reasonable, and apply
any proceeds to the Obligations in whatever manner or order Bank deems
appropriate;

               (h) Bank may credit bid and purchase at any public sale; and

               (i) Any deficiency that exists after disposition of the
Collateral as provided above will be paid immediately by Borrower, and any
excess will be returned to the party which is entitled to it under law.

          9.2 Power of Attorney. Effective only upon the occurrence and during
the continuance of an Event of Default, Borrower hereby irrevocably appoints
Bank (and any of Bank's designated officers, or employees) as Borrower's true
and lawful attorney to: (a) send requests for verification of Accounts or notify
account debtors of Bank's security interest in the Accounts; (b) endorse
Borrower's name on any checks or other forms of payment or security that may
come into Bank's possession; (c) sign Borrower's name on any invoice or bill of
lading relating to any Account, drafts against account debtors, schedules and
assignments of Accounts, verifications of Accounts, and notices to account
debtors; (d) dispose of any Collateral; (e) make, settle, and adjust all claims
under and decisions with respect to Borrower's policies of insurance; (f) settle
and adjust disputes and claims respecting the accounts directly with account
debtors, for amounts and upon terms which Bank determines to be reasonable; and
(g) to file, in its sole discretion, one or more financing or continuation
statements and amendments thereto, relative to any of the Collateral; provided
Bank may exercise such power of attorney to sign the name of Borrower on any of
the documents described in Section 4.2 regardless of whether an Event of Default
has occurred. The appointment of Bank as Borrower's attorney in fact, and each
and every one of Bank's rights and powers, being coupled with an interest, is
irrevocable until all of the Obligations have been fully repaid and performed
and Bank's obligation to provide Credit Extensions hereunder is terminated.

          9.3 Accounts Collection. At any time during the existence of an Event
of Default, Bank may notify any Person owing funds to Borrower of Bank's
security interest in such funds and verify the amount of such Account. Borrower
shall collect all amounts owing to Borrower for Bank, receive in trust all
payments as Bank's trustee, and immediately deliver such payments to Bank in
their original form as received from the account debtor, with proper
endorsements for deposit.

          9.4 Bank Expenses. If Borrower fails to pay any amounts or furnish any
required proof of payment due to third persons or entities, as required under
the terms of this Agreement, then Bank may do any or all of the following after
reasonable notice to Borrower: (a) make payment of the same or any part thereof;
(b) set up such reserves under a loan facility in Section 2.1 as Bank deems
necessary to protect Bank from the exposure created by such failure; or (c)
obtain and maintain insurance policies of the type discussed in Section 6.6 of
this Agreement, and take any action with respect to such policies as Bank deems
prudent. Any amounts so paid or deposited by Bank shall constitute Bank
Expenses, shall be immediately due and payable, and shall bear interest at the
then applicable rate hereinabove provided, and shall be secured by the
Collateral. Any payments made by Bank

                                       18

<PAGE>

shall not constitute an agreement by Bank to make similar payments in the future
or a waiver by Bank of any Event of Default under this Agreement.

          9.5 Bank's Liability for Collateral. So long as Bank complies with
reasonable banking practices. Bank shall not in any way or manner be liable or
responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage
thereto occurring or arising in any manner or fashion from any cause; (c) any
diminution in the value thereof; or (d) any act or default of any carrier,
warehouseman, bailee, forwarding agency, or other person whomsoever. All risk of
loss, damage or destruction of the Collateral shall be borne by Borrower.

          9.6 Remedies Cumulative. Bank's rights and remedies under this
Agreement, the Loan Documents, and all other agreements shall be cumulative.
Bank shall have all other rights and remedies not inconsistent herewith as
provided under the Code, by law, or in equity. No exercise by Bank of one right
or remedy shall be deemed an election, and no waiver by Bank of any Event of
Default on Borrower's part shall be deemed a continuing waiver. No delay by Bank
shall constitute a waiver, election, or acquiescence by it. No waiver by Bank
shall be effective unless made in a written document signed on behalf of Bank
and then shall be effective only in the specific instance and for the specific
purpose for which it was given.

          9.7 Demand; Protest. Borrower waives demand, protest, notice of
protest, notice of default or dishonor, notice of payment and nonpayment, notice
of any default, nonpayment at maturity, release, compromise, settlement,
extension, or renewal of accounts, documents, instruments, chattel paper, and
guarantees at any time held by Bank on which Borrower may in any way be liable.

     10.  NOTICES.

          Unless otherwise provided in this Agreement, all notices or demands by
any party relating to this Agreement or any other agreement entered into in
connection herewith shall be in writing and (except for financial statements and
other informational documents which may be sent by first-class mail, postage
prepaid) shall be personally delivered or sent by a recognized overnight
delivery service, certified mail, postage prepaid, return receipt requested, or
by telefacsimile to Borrower or to Bank, as the case may be, at its addresses
set forth below:

     If to Borrower:   SOUNDBITE COMMUNICATIONS, INC.
                       3 Burlington Woods Drive
                       Burlington, MA 01803
                       Attn: Controller
                       FAX: (781)273-4755

     With a copy to:   Testa, Hurwitz & Thibeault, LLP
                       125 High Street
                       Boston, MA 02110
                       Attn: John M. Mutkoski
                       Fax: (617)248-7100

     If to Bank:       Comerica Bank
                       2321 Rosecrans Ave., Suite 5000
                       El Segundo, CA 90245
                       Attn: Manager
                       FAX: (310)297-2291

                                       19

<PAGE>

     with a copy to:   Comerica Bank
                       100 Federal Street, 28th Floor
                       Boston, MA 02110
                       Attn: William J. Sweeney & James Demoy
                       FAX: (617)757-6351

     Notwithstanding the foregoing, notice sent to Borrower in accordance with
this Section 10 shall be effective despite any failure to provide a copy of such
notice to Borrower's counsel. The parties hereto may change the address at which
they are to receive notices hereunder, by notice in writing in the foregoing
manner given to the other.

     11.  CHOICE OF LAW AND VENUE: JURY TRIAL WAIVER.

          This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of California, without regard to principles of
conflicts of law. Each of Borrower and Bank hereby submits to the exclusive
jurisdiction of the state and Federal courts located in the County of Santa
Clara, State of California. BORROWER AND BANK EACH HEREBY WAIVE THEIR RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW OR STATUTORY CLAIMS. EACH PARTY RECOGNIZES AND AGREES THAT THE
FOREGOING WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS
AGREEMENT. EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER
WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

     12.  GENERAL PROVISIONS.

          12.1 Successor and Assigns. This Agreement shall bind and inure to
the benefit of the respective successors and permitted assigns of each of the
parties; provided, however, that neither this Agreement nor any rights hereunder
may be assigned by Borrower without Bank's prior written consent, which consent
may be granted or withheld in Bank's sole discretion. Bank shall have the right
without the consent of or notice to Borrower to sell, transfer, negotiate, or
grant participation in all or any part of, or any interest in, Bank's
obligations, rights and benefits hereunder.

          12.2 Indemnification. Borrower shall defend, indemnify and hold
harmless Bank and its officers, employees, and agents against: (a) all
obligations, demands, claims, and liabilities claimed or asserted by any other
party in connection with the transactions contemplated by this Agreement; and
(b) all losses or Bank Expenses in any way suffered, incurred, or paid by Bank
as a result of or in any way arising out of, following, or consequential to
transactions between Bank and Borrower whether under this Agreement, or
otherwise (including without limitation reasonable attorneys' fees and
expenses), except for losses caused by Bank's gross negligence or willful
misconduct.

          12.3 Time of Essence. Time is of the essence for the performance of
all obligations set forth in this Agreement.

          12.4 Severability of Provisions. Each provision of this Agreement
shall be severable from every other provision of this Agreement for the purpose
of determining the legal enforceability of any specific provision.

          12.5 Amendments in Writing Integration. This Agreement cannot be
amended or terminated orally. All prior agreements, understandings,
representations, warranties, and negotiations between the parties hereto with
respect to the subject matter of this Agreement, if any, are merged into this
Agreement and the Loan Documents.

                                       20

<PAGE>

          12.6 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, shall be deemed to be an original, and all of
which, when taken together, shall constitute but one and the same Agreement.

          12.7 Survival. All covenants, representations and warranties made in
this Agreement shall continue in full force and effect so long as any
Obligations remain outstanding. The obligations of Borrower to indemnify Bank
with respect to the expenses, damages, losses, costs and liabilities described
in Section 12.2 shall survive until all applicable statute of limitations
periods with respect to actions that may be brought against Bank have run.

          12.8 Effect of Amendment and Restatement. This Agreement is intended
to and does completely amend and restate, without novation, the Original
Agreement. All security interests granted under the Original Agreement are
hereby confirmed and ratified and shall continue to secure all Obligations under
this Agreement.

          12.9 Waiver. Bank waives Borrower's failure to comply with Section 6.9
of the Original Agreement for the months ended March 31, 2004, April 30, 2004,
and May 31, 2004. Bank does not waive any other failure by Borrower to perform
its Obligations under the Loan Documents, and Bank does not waive Borrower's
obligations under Section 6.9 of the Original Agreement or this Agreement for
any time periods other than those specified herein. This waiver is not a
continuing waiver with respect to any failure to perform any Obligation after
May 31, 2004.

     13.  REFERENCE PROVISION.

     If and only if the jury trial waiver set forth in Section 11 of this
Agreement is invalidated for any reason by a court of law, statute or otherwise,
the reference provisions set forth below shall be substituted in place of the
jury trial waiver. So long as the jury trial waiver remains valid, the reference
provisions set forth in this Section shall be inapplicable.

               (a) Each controversy, dispute or claim (each, a "Claim") between
the parties arising out of or relating to this Agreement, any security agreement
executed by Borrower in favor of Bank, any note executed by Borrower in favor of
Bank or any other document, instrument or agreement executed by Borrower with or
in favor of Bank (collectively in this Section, the "Loan Documents"), other
than (i) all matters in connection with nonjudicial foreclosure of security
interests in real or personal property; or (ii) the appointment of a receiver or
the exercise of other provisonal remedies (any of which may be initiated
pursuant to applicable law) that are not settled in writing within fifteen (15)
days after the date on which a party subject to the Loan Documents gives written
notice to all other parties that a Claim exists (the "Claim Date") shall be
resolved 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 sections ("CCP"), which shall constitute the exclusive remedy
for the resolution of any Claim concerning the Loan Documents, including whether
such Claim is subject to the reference proceeding. Except as set forth in this
section, the parties waive the right to initiate legal proceedings against each
other concerning each such Claim. Venue for these proceedings shall be in the
Superior Court in the County where the real property, if any, is located or in a
County where venue is otherwise appropriate under state law (the "Court"). By
mutual agreement, the parties shall select a retired Judge of the Court to serve
as referee, and if they cannot so agree within fifteen (15) days after the Claim
Date, the Presiding Judge of the Court (or his or her representative) shall
promptly select the referee. A request for appointment of a referee may be heard
on an ex parte or expedited basis. The referee shall be appointed to sit as a
temporary judge, with all 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
Section 170.6. Upon being selected, the referee shall (a) be requested to set
the matter for a status and trial-setting conference within fifteen (15) days
after the date of selection and (b) if practicable, try any and all issues of
law or fact and report a statement of decision upon them within ninety (90) days
of the date of selection. The referee will have power to expand or limit the
amount of discovery a party may employ. Any decision rendered by the referee
will be final, binding and conclusive, and judgment shall be entered pursuant to
CCP Section 644 in any court in the State of California having jurisdiction. The
parties shall complete all discovery no later than fifteen (15) days before the
first trial date established by the referee. The referee may extend such period
in the event of a party's refusal to provide

                                       21

<PAGE>

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. Either party may take depositions upon seven (7) days written notice,
and shall respond to requests for production or inspection of documents 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.

               (b) Except as expressly set forth herein, 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. Except for trial, all proceedings and hearings conducted before the
referee shall be conducted without a court reporter unless a party requests a
court reporter. The party making such a request shall have the obligation to
arrange for and pay for the court reporter. Subject to the referee's power to
award costs to the prevailing party, the parties shall equally bear the costs of
the court reporter at the trial and the referee's expenses

               (c) The referee shall determine all issues in accordance with
existing California case and statutory law. California rules of evidence
applicable to proceedings at law will apply 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 shall be binding upon the parties. At the close of the reference
proceeding, the referee shall issue a single judgment at disposing of all the
claims of the parties that are the subject of the reference. The parties
reserve the right (i) to contest or appeal from the final judgment or any
appealable order or appealable judgment entered by the referee and (ii) to
obtain findings of fact, conclusions of laws, a written statement of decision,
and (iii) to move for a new trial or a different judgment, which new trial, if
granted, shall be a reference proceeding under this provision.

               (d) If 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 conducted by a retired
judge of the Court, in accordance with the California Arbitration Act Section
1280 through Section 1294.2 of the CCP as amended from time to time. The
limitations with respect to discovery as set forth in this Section shall apply
to any such arbitration proceeding.

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

                                            SOUNDBITE COMMUNICATIONS, INC.

                                            By: /s/ Christopher Hemme
                                                --------------------------------
                                            Title: VP Finance

                                            COMERICA BANK

                                            By: /s/ James Demoy
                                                --------------------------------
                                            Title: VICE PRESIDENT

                                       22

<PAGE>

                                 FIRST AMENDMENT
                                       TO
               AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     This First Amendment to Amended and Restated Loan and Security Agreement is
entered into as of December 3, 2004 (the "Amendment"), by and between COMERICA
BANK ("Bank") and SOUNDBITE COMMUNICATIONS, INC. ("Borrower").

                                    RECITALS

     Borrower and Bank are parties to that certain Amended and Restated Loan and
Security Agreement dated as of July 2, 2004, as amended (collectively, the
"Agreement"). The parties desire to amend the Agreement in accordance with the
terms of this Amendment.

     NOW, THEREFORE, the parties agree as follows:

     1. Section 1.1 of the Agreement is hereby amended to add or amend the
following defined terms to read as follows:

               "Credit Extension" means each Advance, Letter of Credit,
     Equipment Advance, or any other extension of credit by Bank for the benefit
     of Borrower hereunder.

               "Equipment Advance" has the meaning set forth in Section 2.l(d).

               "Equipment Line" means a credit extension of up to Three Hundred
     Thousand Dollars ($300,000).

               "Equipment Maturity Date" means December 1, 2007.

     2. A new Section 2.l(d) is hereby added to the Agreement to read as
follows:

               (d) Equipment Advances.

                    (i) Subject to and upon the terms and conditions of this
     Agreement, at any time from December 3, 2004 through June 3, 2005, Bank
     agrees to make advances (each an "Equipment Advance" and collectively, the
     "Equipment Advances") to Borrower in an aggregate amount not to exceed the
     Equipment Line. Each Equipment Advance shall not exceed one hundred percent
     (100%) of the invoice amount of new equipment and software purchased for
     use by Borrower and approved by Bank from time to time (which Borrower
     shall, in any case, have purchased within 90 days of the date of the
     corresponding Equipment Advance), excluding taxes, shipping, warranty
     charges, freight discounts and installation expense. Notwithstanding the
     foregoing, (i) the aggregate amount of all Equipment Advances financing
     software shall not exceed $50,000 and (ii) in the initial Equipment
     Advance, which shall be requested on or before December 31, 2004. Bank will
     finance equipment and software purchased at any time on or after September
     3, 2004 (the "Lookback Equipment Advance").

                    (ii) Interest shall accrue from the date of each Equipment
     Advance at the rate specified in Section 2.2, and shall be payable monthly
     on the first (1st) day of each month so long as any Equipment Advances are
     outstanding. The Lookback Equipment Advance shall be payable in thirty six
     (36) equal monthly installments of principal, plus all accrued interest,
     beginning on January 1, 2005 and continuing on the same day of each month
     thereafter. Any other Equipment Advances that are outstanding on June 4,
     2005 shall be payable in thirty (30) equal monthly installments of
     principal, plus all accrued interest, beginning on July

                                        1

<PAGE>

     1, 2005, and continuing on the same day of each month thereafter through
     the Equipment Maturity Date, at which time all amounts owing under this
     Section 2.1(d) and any other amounts owing under this Agreement shall be
     immediately due and payable. Equipment Advances, once repaid, may not be
     reborrowed. Borrower may prepay any Equipment Advances without penalty or
     premium.

                    (iii) When Borrower desires to obtain an Equipment Advance,
     Borrower shall notify Bank (which notice shall be irrevocable) by facsimile
     transmission to be received no later than 3:30 p.m. Eastern time three (3)
     Business Days before the day on which the Equipment Advance is to be made.
     Such notice shall be substantially in the form of Exhibit B. The notice
     shall be signed by a Responsible Officer or its designee and include a copy
     of the invoice for any equipment and/or software to be financed.

     3. Section 2.2(a) of the Agreement is hereby amended in its entirety to
read as follows:

               (a) Interest Rates. Except as set forth in Section 2.2(b), (i)
     the Advances shall bear interest, on the outstanding Daily Balance thereof,
     at a rate equal to one percent (1.0%) above the Prime Rate and (ii) the
     Equipment Advances shall bear interest, on the outstanding Daily Balance
     thereof, at a rate equal to one and one half percent (1.5%) above the Prime
     Rate.

     4. Exhibit A to the Agreement is hereby amended to add the following
paragraph to the end of such Exhibit A:

          Notwithstanding the foregoing, the Collateral shall not include any
     right, title, interest, claims and demands of Debtor in and to the
     Lighthouse Financed Property to the extent the granting of a security
     interest therein is prohibited by or would constitute a default under any
     agreement or document relating to such property; provided that upon the
     termination or lapsing of any such prohibition, such property shall
     automatically be part of the Collateral; and provided further that the
     provisions of this paragraph shall in no case exclude from the definition
     of "Collateral" any Accounts or general intangibles consisting of rights to
     payment (other than proceeds of the Lighthouse Financed Property), all of
     which shall at all times constitute "Collateral"; and provided further that
     any Equipment financed by Bank will at all times constitute "Collateral".
     As used herein, "Lighthouse Financed Property" means right, title,
     interest, claims and demands of Debtor in and to each and every item of
     goods, equipment, software, inventory, or fixtures that is financed
     pursuant to that certain Loan and Security Agreement by and between Debtor
     and Lighthouse Capital Partners IV, L.P., dated as of August 14, 2002, and
     that certain Loan and Security Agreement by and between Debtor and
     Lighthouse Capital Partners IV, L.P., dated as of July 10, 2003, wherever
     located, together with all substitutions, renewals or replacements of and
     additions, improvements, accessions and accumulations to any and all of the
     foregoing, together with all proceeds thereof, including without
     limitation, insurance, proceeds of insurance, proceeds of proceeds, cash
     proceeds, non-cash proceeds, condemnation, requisition or similar payments,
     and all proceeds from sales, renewals, releases or other dispositions
     thereof.

     5. 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 agreements entered into in connection
with the Agreement, except to the extent such security interest is being
released pursuant to this Amendment.

     6. 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>

     7. 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.

     8. 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) Certificate of Secretary:

          (c) disbursement instructions, an agreement to provide insurance, and
an auto-debit authorization:

          (d) a nonrefundable amendment fee equal to $3,000 plus an amount equal
to all Bank Expenses incurred through the date of this Amendment: 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.

                                        SOUNDBITE COMMUNICATIONS, INC.

                                        By: /s/ Christopher Hemme
                                            ------------------------------------
                                        Title: Vice President of Finance
                                        Name: Christopher Hemme

                                        COMERICA BANK

                                        By: /s/ James Demoy
                                            ------------------------------------
                                        Title: VICE PRESIDENT
                                        Name: JAMES DEMOY

                                        3

<PAGE>

                           SECOND AMENDMENT AND WAIVER
                                       TO
                AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     This Second Amendment and Waiver to Amended and Restated Loan and Security
Agreement is entered into as of May 30, 2005 (the "Amendment"), by and between
COMERICA BANK ("Bank") and SOUNDBITE COMMUNICATIONS, INC. ("Borrower").

                                    RECITALS

     Borrower and Bank are parties to that certain Amended and Restated Loan and
Security Agreement dated as of July 2, 2004, as amended, including without
limitation by that certain First Amendment to Amended and Restated Loan and
Security Agreement dated as of December 3, 2004 (collectively, the "Agreement").
The parties desire to further amend the Agreement in accordance with the terms
of this Amendment.

     NOW, THEREFORE, the parties agree as follows:

     1. Section 1.1 of the Agreement is hereby amended to add or amend the
following defined terms to read as follows;

               "New Financing Event" means the receipt by Borrower of new cash
     proceeds in a net amount of at least $2,500,000 from the sale and issuance
     of its equity securities or subordinated convertible debt securities (in
     connection with which a subordination agreement satisfactory to Bank has
     been entered into with Bank) to investors (which investors shall be
     comprised of Borrower's existing investors or Borrower's existing
     investors plus a new lead investor satisfactory to Bank).

               "Revolving Maturity Date" means July 31, 2005.

     2. Section 6.3(b) of the Agreement is hereby amended in its entirety to
read as follows:

          (b) as soon as available, but in any event within one hundred twenty
     (120) days after the end of Borrower's fiscal year, audited consolidated
     financial statements of Borrower prepared in accordance with GAAP,
     consistently applied, together with an unqualified opinion on such
     financial statements of an independent certified public accounting firm
     reasonably acceptable to Bank, provided that such financial statements for
     the fiscal year ended December 31, 2003 shall be delivered to Bank on or
     before June 30, 2004, and such financial statements for the fiscal year
     ended December 31, 2004 shall be delivered to Bank on or before August
     31, 2005;

     3. Section 6.8 of the Agreement is hereby amended to its entirety to read
as follows:

          6.8 New Financing Event.

               (a) On or before May 2, 2005, Borrower shall deliver to Bank a
     term sheet signed by Borrower and investors (which investors shall be
     comprised of Borrower's existing investors or Borrower's existing investors
     plus a new lead investor satisfactory to Bank) evidencing a commitment on
     the part of such investors to purchase at least $2,500,000 of Borrower's
     equity or subordinated convertible debt securities.

               (b) The New Financing Event shall occur on or before June 15,
     2005.

     4. Exhibit C to the Agreement is hereby amended to read as Exhibit C
attached hereto.

                                        1

<PAGE>

     5. Bank waives any failure by Borrower to comply with (i) Section 6.11 of
the Agreement for the months ending January 31, 2005, February 28, 2005, March
31, 2005, April 30, 2005, May 31, 2005 and June 30, 2005, and (ii) Section 6.10
of the Agreement for the months ending March 31, 2005, April 30, 2005, May
31, 2005 and June 30, 2005. Bank does not waive any other failure by Borrower to
perform their Obligations under the Loan Documents, and Bank does not waive
Borrower's obligations under such Sections after June 30, 2005. This waiver is
not a continuing waiver with respect to any failure to perform any Obligation
after June 30, 2005.

     6. Within 30 days after the New Financing Event, Borrower shall
deliver to Bank a warrant to purchase $40,000 of Borrower's preferred stock sold
in the New Financing Event at a price per share equal to that paid by Borrower's
investors in the New Financing Event, in substantially the form of warrant
previously delivered to Bank by Borrower.

     7. 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 agreement, mortgages, deeds of trust,
environmental agreements, and all other agreements entered into in
connection with the Agreement, except to the extent such security interest is
being released pursuant to this Amendment.

     8. 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.

     9. 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.

     10. 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) Certificate of Secretary;

          (c) a nonrefundable amendment fee equal to $2,500 plus an amount
equal to all Bank Expenses incurred through the date of this Amendment; and

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

                                        2

<PAGE>

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

                                        SOUNDBITE COMMUNICATIONS, INC.

                                        By: /s/ Christopher Hemme
                                            ------------------------------------
                                        Title: VP Finance
                                        Name: Christopher Hemme

                                        COMERICA BANK

                                        By: /s/ James Demoy
                                            ------------------------------------
                                        Title: VICE PRESIDENT
                                        Name: JAMES DEMOY

                                        3

<PAGE>

                                    EXHIBIT C
                             COMPLIANCE CERTIFICATE

TO: COMERICA BANK
FROM: SOUNDBITE COMMUNICATIONS, INC.

     The undersigned authorized officer of SOUNDBITE COMMUNICATIONS, INC. hereby
certifies that in accordance with the terms and conditions of the Loan and
Security 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>
Monthly financial statements                     Monthly within 30 days    Yes [ ] No [ ]
Annual (CPA Audited)                             FYE within 120 days*      Yes [ ] No [ ]
Total amount of Borrower's cash and investments  Amount: $________         Yes [ ] No [ ]
Total amount of Borrower's cash and investments  Amount: $________         Yes [ ] No [ ]
maintained with Bank
A/R & A/P Agings, Borrowing Base Cert.           1st & 15th of each month  Yes [ ] No [ ]
A/R Audit                                        Semi-Annual               Yes [ ] No [ ]
</TABLE>

<TABLE>
<CAPTION>
FINANCIAL COVENANT                               REQUIRED   ACTUAL            COMPLIES
------------------                               --------   ------         --------------
<S>                                              <C>        <C>            <C>
Maximum Net Loss**                               $1.00      $________      Yes [ ] No [ ]
   Adjusted Quick Ratio**                        1.10:1.00  ____:1.00      Yes [ ] No [ ]
Minimum Cash at Bank                             $750,000   $________      Yes [ ] No [ ]
$2.5MM New Equity                                6/15/05    _________      Yes [ ] No [ ]
$2.5MM Term Sheet                                5/2/05                    Yes [ ] No [ ]
</TABLE>

*    August 31, 2005 for FYE 12/31/2005

**   Waived through 6/30/05

<TABLE>
<S>                                            <C>
Comments Regarding Exceptions: See Attached.   BANK USE ONLY
                                               Received by:
                                                            ----------------------------------------
Sincerely,                                                          AUTHORIZED SIGNER
                                               Date:
                                                     -----------------------------------------------
                                               Verified:
--------------------------------------------             -------------------------------------------
SIGNATURE                                                           AUTHORIZED SIGNER
                                               Date:
--------------------------------------------         -----------------------------------------------
TITLE
                                               Compliance Status            Yes [ ]   No [ ]
--------------------------------------------
DATE
</TABLE>

                                        4

<PAGE>

                                 THIRD AMENDMENT
                                       TO
                AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     This Third Amendment to Amended and Restated Loan and Security Agreement is
entered into as of August 22, 2005 (the "Amendment"), by and between COMERICA
BANK ("Bank") and SOUNDBITE COMMUNICATIONS, INC. ("Borrower").

                                    RECITALS

     Borrower and Bank are parties to that certain Amended and Restated Loan and
Security Agreement dated as of July 2, 2004, as amended, including without
limitation by that certain First Amendment to Amended and Restated Loan and
Security Agreement dated as of December 3, 2004, and by that certain Second
Amendment and Waiver to Amended and Restated Loan and Security Agreement dated
as of May 30, 2005 (collectively, the "Agreement"). The parties desire to amend
the Agreement in accordance with the terms of this Amendment.

     NOW, THEREFORE, the parties agree as follows:

     1. Section 1.1 of the Agreement is hereby amended to add or amend the
following defined terms to read as follows:

          "Borrowing Base" means an amount equal to eighty percent (80%) of
     Eligible Accounts, as determined by Bank with reference to the most recent
     Borrowing Base Certificate delivered by Borrower.

          "Equipment Advance" and "Equipment Advances" means, individually and
     collectively, the Facility A Equipment Advances and the Facility B
     Equipment Advances.

          "Equipment Line" means a credit extension of up to Two Million Eight
     Hundred Thousand Dollars ($2,800,000).

          "Facility A Maturity Date" means December 1, 2007.

          "Facility A Equipment Advance" has the meaning set forth in Section
     2.1(d).

          "Facility B Equipment Advance" has the meaning set forth in Section
     2.1(d).

          "Revolving Maturity Date" means July 31, 2006.

          "Tranche B-1 Maturity Date" means February 1, 2008.

          "Tranche B-2 Availability End Date" means February 22, 2006.

          "Tranche B-2 Maturity Date" means August 1, 2008.

          "Tranche B-3 Availability End Date" means August 22, 2006.

          "Tranche B-3 Maturity Date" and "Equipment Maturity Date" mean
     February 1, 2009.

                                        1

<PAGE>

     2. Section 2.1(d) of the Agreement is hereby amended in its entirety to
read as follows:

          (d) Equipment Advances.

               (i) Subject to and upon the terms and conditions of this
     Agreement, at any time from December 3, 2004 through June 3, 2005, Bank
     agrees to make Equipment Advances (each a "Facility A Equipment Advance"
     and, collectively, the "Facility A Equipment Advances") to Borrower in an
     aggregate amount not to exceed Three Hundred Thousand Dollars ($300,000).
     Subject to and upon the terms and conditions of this Agreement, at any time
     from August 22, 2005 through the Tranche B-3 Availability End Date, Bank
     agrees to make Equipment Advances (each a "Facility B Equipment Advance"
     and, collectively, the "Facility B Equipment Advances") to Borrower in an
     aggregate amount not to exceed Two Million Five Hundred Thousand Dollars
     ($2,500,000). In no event with the aggregate amount of all Equipment
     Advances exceed the Equipment Line. Each Equipment Advance shall not exceed
     one hundred percent (100%) of the invoice amount of new equipment and
     software purchased for use by Borrower and approved by Bank from time to
     time (which Borrower shall, in any case, have purchased within 90 days of
     the date of the corresponding Equipment Advance), excluding taxes,
     shipping, warranty charges, freight discounts and installation expense.
     Notwithstanding the foregoing, (i) the aggregate amount of all Facility A
     Equipment Advances financing software shall not exceed $50,000, (ii) in the
     initial Facility A Equipment Advance, which shall be requested on or before
     December 31, 2004, Bank will finance equipment and software purchased at
     any time on or after September 3, 2004 (the "Facility A Lookback Equipment
     Advance"), (iii) the aggregate amount of all Facility B Equipment Advances
     financing software shall not exceed $250,000, and (iv) in the initial
     Facility B Equipment Advance, which shall be requested on or before August
     31, 2005, Bank will finance equipment and software purchased at any time on
     or after January 1, 2005 (the "Facility B Lookback Equipment Advance").

               (ii) Subject to and upon the terms and conditions of this
     Agreement, Bank agrees to make the Facility B Equipment Advances to
     Borrower in three tranches, Tranche B-1, Tranche B-2 and Tranche B-3.
     Borrower may request one Equipment Advance under Tranche B-1, also referred
     to herein as the Facility B Lookback Advance, on or prior to August
     31, 2005. Borrower may request Facility B Equipment Advances under Tranche
     B-2 at any time from the date hereof through the Tranche B-2 Availability
     End Date. Borrower may request Equipment Advances under Tranche B-3 at any
     time from the Tranche B-2 Availability End Date through the Tranche B-3
     Availability End Date.

               (iii) Interest shall accrue from the date of each Equipment
     Advance at the Rate specified in Section 2.2, and shall be payable monthly
     on the first (1st) day of each month so long as any Equipment Advances are
     outstanding. Equipment Advances, once repaid, may not be reborrowed.
     Borrower may prepay any Equipment Advances without penalty or premium.

                    a) The Facility A Lookback Equipment Advance shall be
     payable in thirty six (36) equal monthly installments of principal, plus
     all accrued interest, beginning on January 1, 2005 and continuing on the
     same day of each month thereafter. Any other Facility A Equipment Advances
     that are outstanding on June 4, 2005 shall be payable in thirty (30) equal
     monthly installments of principal, plus all accrued interest, beginning on
     July 1, 2005, and continuing on the same day of each month thereafter
     through the Facility A Maturity Date, at which time all amounts due or
     owing in connection with Facility A Equipment Advances under this Section
     2.1(d) shall be immediately due and payable.

                    b) The Facility B Lookback Equipment Advance shall be
     payable in thirty (30) equal monthly installments of principal, plus all
     accrued interest, beginning on September 1, 2005, and continuing on the
     same day of each month thereafter through the Tranche B-1 Maturity Date, at
     which time all amounts due in connection with the Facility B

                                        2

<PAGE>

     Lookback Equipment Advance made under this Section 2.1(d) shall be
     immediately due and payable.

                    c) Any Facility B Equipment Advances that are outstanding
     under Tranche B-2 on the Tranche B-2 Availability End Date shall be payable
     in thirty (30) equal monthly installments of principal, plus all accrued
     interest, beginning on March 1, 2006, and continuing on the same day of
     each month thereafter through the Tranche B-2 Maturity Date, at which time
     all amounts due in connection with Tranche B-2 Equipment Advances made
     under this Section 2.1(d) shall be immediately due and payable.

                    d) Any Facility B Equipment Advances that are outstanding
     under Tranche B-3 on the Tranche B-3 Availability End Date shall be payable
     in thirty (30) equal monthly installments of principal, plus all accrued
     interest, beginning on September 1, 2006, and continuing on the same day of
     each month thereafter through the Tranche B-3 Maturity Date, at which time
     all amounts due in connection with Tranche B-3 Equipment Advances made
     under this Section 2.1(d) and any other amounts owing under this Agreement
     shall be immediately due and payable shall be immediately due and payable.

               (iii) When Borrower desires to obtain an Equipment Advance,
     Borrower shall notify Bank (which notice shall be irrevocable) by facsimile
     transmission to be received no later than 3:30 p.m. Eastern time three (3)
     Business Days before the day on which the Equipment Advance is to be made.
     Such notice shall be substantially in the form of Exhibit B. The notice
     shall be signed by a Responsible Officer or its designee and include a copy
     of the invoice for any equipment and/or software to be financed.

     3. Section 6.3 of the Agreement is hereby amended in its entirety to read
as follows:

          6.3 Financial Statements, Reports, Certificates. Borrower shall
     deliver to Bank: (a) as soon as available, but in any event within thirty
     (30) days after the end of each calendar month, a company prepared
     consolidated balance sheet and income statement covering Borrower's
     consolidated operations during such period, prepared in accordance with
     GAAP, consistently applied, in a form acceptable to Bank and certified by a
     Responsible Officer; (b) as soon as available, but in any event within one
     hundred fifty (150) days after the end of Borrower's fiscal year, audited
     consolidated financial statements of Borrower prepared in accordance with
     GAAP, consistently applied, together with an unqualified opinion on such
     financial statements of an independent certified public accounting firm
     reasonably acceptable to Bank, provided that such financial statements for
     the fiscal year ended December 31, 2003 shall be delivered to Bank on or
     before June 30, 2004, and such financial statements for the fiscal year
     ended December 31, 2004 shall be delivered to Bank on or before August
     31, 2005; (c) if applicable, copies of all statements, reports and notices
     sent or made available generally by Borrower to its security holders or to
     any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q
     filed with the Securities and Exchange Commission; (d) promptly upon
     receipt of notice thereof, a report of any legal actions pending or
     threatened against Borrower or any Subsidiary that could result in damages
     or costs to Borrower or any Subsidiary of One Hundred Thousand Dollars
     ($100,000) or more; (e) as soon as available, but in any event not later
     than sixty (60) days after the last day of each fiscal year, Borrower's
     financial and business plan, projections and budget for the next year, with
     evidence of approval thereof by Borrower's Board of Directors; and (f) such
     budgets, sales projections, operating plans or other financial information
     as Bank may reasonably request from time to time generally prepared by
     Borrower in the ordinary course of business.

          Borrower shall deliver to Bank with the monthly financial statements,
     a Compliance Certificate signed by a Responsible Officer in substantially
     the form of Exhibit C hereto.

                                        3

<PAGE>

          Borrower shall deliver to Bank, on the first day of each month, a
     Borrowing Base Certificate signed by a Responsible Officer in substantially
     the form of Exhibit D hereto, together with aged listings of accounts
     receivable and accounts payable.

          Bank shall have a right from time to time hereafter to audit
     Borrower's Accounts and appraise Collateral at Borrower's expense, provided
     that such audits will be conducted no more often than every six (6) months
     thereafter unless an Event of Default has occurred and is continuing.

     4. Section 6.10 of the Agreement is hereby in its entirety amended to read
as follows:

          6.10 Adjusted Quick Ratio. Borrower shall maintain, at all times, a
     ratio of (i) unrestricted cash at Bank plus eighty percent (80%) of
     Eligible Accounts to (ii) Current Liabilities plus, to the extent not
     already included therein, all Indebtedness (including without limitation
     any Contingent Obligations) owing from Borrower to Bank less the current
     portion of Borrower's capital leases (collectively, a "Quick Ratio"), of at
     least 1.40 to 1.00.

     5. Section 6.11 of the Agreement is hereby in its entirety amended to read
"Reserved".

     6. Exhibit B to the Agreement is hereby amended to read as Exhibit B
attached hereto.

     7. Exhibit C to the Agreement is hereby amended to read as Exhibit C
attached hereto.

     8. Exhibit D to the Agreement is hereby amended to read as Exhibit D
attached hereto.

     9. 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 agreements entered into in connection
with the Agreement, except to the extent such security interest is being
released pursuant to this Amendment.

     10. 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.

     11. 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.

     12. 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) Certificate of Secretary;

          (c) disbursement instructions, an agreement to provide insurance, and
an auto-debit authorization;

          (d) a nonrefundable amendment fee equal to $5,000 plus an amount equal
to all Bank Expenses incurred through the date of this Amendment; and

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

                                        4

<PAGE>

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

                                        SOUNDBITE COMMUNICATIONS, INC.

                                        By: /s/ Christopher Hemme
                                            ------------------------------------
                                        Title: CFO
                                        Name: Christopher Hemme

                                        COMERICA BANK

                                        By:
                                            ------------------------------------
                                        Title:
                                               ---------------------------------
                                        Name:
                                              ----------------------------------

                                        5

<PAGE>

                                    EXHIBIT B

                       TECHNOLOGY & LIFE SCIENCES DIVISION
                                  LOAN ANALYSIS
                       LOAN ADVANCE/PAYDOWN REQUEST FORM
           DEADLINE FOR NEXT DAY PROCESSING IS 3:30 P.M. Eastern Time
           DEADLINE FOR EQUIPMENT ADVANCES IS 3:30 P.M. Eastern Time**
              DEADLINE FOR WIRE TRANSFERS IS 3:30 P.M. Eastern Time
                   *Subject to 3 business day advance notice.

TO: Loan Analysis                         DATE: ______________   TIME: _________
FAX #: (650) 846-6840

<TABLE>
<S>              <C>                                           <C>
FROM:            SOUNDBITE COMMUNICATIONS, INC.                TELEPHONE REQUEST (For Bank Use Only):
                 Borrower's Name

FROM:            _____________________________________         The following person is authorized to request the
                 Authorized Signer's Name                      loan payment transfer/loan advance on the
                                                               designated account and is known to me.

FROM:            _____________________________________                __________________________________________
                 Authorized Signature (Borrower)                      Authorized Request & Phone #

PHONE #:         _____________________________________                __________________________________________
                                                                      Received by (Bank) & Phone #

FROM ACCOUNT #:  _____________________________________
(please include Note number, if applicable)                           __________________________________________
                                                                      Authorized Signature (Bank)
TO ACCOUNT#:     _____________________________________
(please include Note number, if applicable)
</TABLE>

<TABLE>
<S>                                             <C>                                    <C>
REQUESTED TRANSACTION TYPE                      REQUESTED DOLLAR AMOUNT                    For Bank Use Only

PRINCIPAL INCREASE* (ADVANCE)                   $_______________________________       Date Rec'd:
PRINCIPAL PAYMENT (ONLY)                        $_______________________________       Time:
                                                                                       Comp. Status: YES [ ]  NO [ ]
OTHER INSTRUCTIONS:                                                                    Status Date:
                                                                                       Time:
_________________________________________________________________________              Approval:
_________________________________________________________________________
</TABLE>

All representations and warranties of Borrower stated in the Loan Agreement are
true, correct and complete in all material respects as of the date of the
telephone request for and advance confirmed by this Borrowing Certificate,
including without limitation the representation that Borrower has paid for and
owns the equipment financed by the Bank; provided, however, that those
representations and warranties expressly referring to another date shall be
true, correct and complete in all material respects as of such date.

*IS THERE A WIRE REQUEST TIED TO THIS LOAN ADVANCE?
(PLEASE CIRCLE ONE)                                               YES [ ] NO [ ]

    If YES, the Outgoing Wire Transfer Instructions must be completed below.

<TABLE>
<S>                                                            <C>                         <C>
OUTGOING WIRE TRANSFER INSTRUCTIONS                            Fed Reference Number        Bank Transfer Number

                       THE ITEMS MARKED WITH AN ASTERISK (*) ARE REQUIRED TO BE COMPLETED.

*Beneficiary Name
*Beneficiary Account Number
*Beneficiary Address
Currency Type                                                       US DOLLARS ONLY
*ABA Routing Number (9 Digits)
*Receiving Institution Name
*Receiving Institution Address
*Wire Account                    $
</TABLE>

<PAGE>

                                    EXHIBIT C

                             COMPLIANCE CERTIFICATE

TO:   COMERICA BANK
FROM: SOUNDBITE COMMUNICATIONS, INC.

     The undersigned authorized officer of SOUNDBITE COMMUNICATIONS, INC. hereby
certifies that in accordance with the terms and conditions of the Amended and
Restated Loan and Security 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>
Monthly financial statements                      Monthly within 30 days   Yes [ ]  No [ ]
Annual (CPA Audited)                              FYE within 150 days*     Yes [ ]  No [ ]
Total amount of Borrower's cash and investments   Amount: $__________      Yes [ ]  No [ ]
Total amount of Borrower's cash and investments   Amount: $__________      Yes [ ]  No [ ]
maintained with Bank
A/R & A/P Agings, Borrowing Base Cert.            1st day of each month    Yes [ ]  No [ ]
A/R Audit                                         Semi-Annual              Yes [ ]  No [ ]
Board Approved Plan                               60 days after FYE        Yes [ ]  No [ ]
</TABLE>

<TABLE>
<CAPTION>
FINANCIAL COVENANT                                REQUIRED     ACTUAL          COMPLIES
------------------                                --------     ------      ---------------
<S>                                               <C>          <C>         <C>
Adjusted Quick Ratio                              1.40:1.00    ____:1.00   Yes [ ]  No [ ]
Minimum Cash at Bank                              $750,000     $________   Yes [ ]  No [ ]
</TABLE>

* August 31, 2005 for FY2004.

Comments Regarding Exceptions: See Attached.

                                         BANK USE ONLY
                                         Received by: __________________________
Sincerely,                                                 AUTHORIZED SIGNER
                                         Date: _________________________________
                                         Verified: _____________________________
-------------------------------------                      AUTHORIZED SIGNER
SIGNATURE
                                         Date: _________________________________
-------------------------------------
TITLE
                                         Compliance Status        Yes [ ] No [ ]
-------------------------------------
DATE

<PAGE>

                                    EXHIBIT D

                           BORROWING BASE CERTIFICATE

Borrower: SOUNDBITE COMMUNICATIONS, INC.                   Lender: Comerica Bank

Commitment Amount: $1,000,000.00

<TABLE>
<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 25% 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 (80% of #14)                                $_____________

BALANCES
     16.  Maximum Loan Amount                                                $1,000,000
     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 Comerica
     Bank.

SOUNDBITE COMMUNICATIONS, INC.

By:
    ----------------------------------
           Authorized Signer

<PAGE>

                                  COMERICA BANK
                                   MEMBER FDIC

                         ITEMIZATION OF AMOUNT FINANCED
                            DISBURSEMENT INSTRUCTIONS
                                (EQUIPMENT LOAN)

Name(s): SOUNDBITE COMMUNICATIONS, INC.                    Date: August 22, 2005

     $        credited to deposit account No. _________ when Advances are
              requested or disbursed to Borrower by cashiers check or wire
              transfer

Amounts paid to others on your behalf:

     $5,000   to Comerica Bank for Loan Fee

     $        to Bank counsel fees and expenses

     $        to ________________

     $        to ________________

     $        TOTAL (AMOUNT FINANCED)

     Upon consummation of this transaction, this document will also serve as the
     authorization for Comerica Bank to disburse the loan proceeds as stated
     above.

---------------------------------------   --------------------------------------
Signature                                 Signature

<PAGE>

                         AGREEMENT TO PROVIDE INSURANCE

TO:  COMERICA BANK                      Date: August 22, 2005
     Attn: Deni M. Snider, MC 4770
     75 E. Trimble Road
     San Jose, CA 95131                 Borrower: SOUNDBITE COMMUNICATIONS, INC.

     In consideration of a loan in the amount of $3,800,000, secured by all
     tangible personal property including inventory and equipment.

     I/We agree to obtain adequate insurance coverage to remain in force during
     the term of the loan.

     I/We also agree to advise the below named agent to add Comerica Bank as
     lender's loss payable on the new or existing insurance policy, and to
     furnish Bank at above address with a copy of said policy/endorsements and
     any subsequent renewal policies.

     I/We understand that the policy must contain:

     1.   Fire and extended coverage in an amount sufficient to cover:

          (a)  The amount of the loan, OR

          (b)  All existing encumbrances, whichever is greater,

          But not in excess of the replacement value of the improvements on the
          real property.

     2.   Lender's "Loss Payable" Endorsement Form 438 BFU in favor of Comerica
          Bank, or any other form acceptable to Bank.

INSURANCE INFORMATION

     Insurance Co./Agent ______________    Telephone No.: ______________________

     Agent's Address: _________________

                     Signature of Obligor:
                                           -------------------------------------

                     Signature of Obligor:
                                           -------------------------------------

FOR BANK USE ONLY

INSURANCE VERIFICATION: Date: ________________________

Person Spoken to: ____________________________________

Policy Number: _______________________________________

Effective From: __________ To: _______________________

Verified by: _________________________________________

<PAGE>

COMERICA BANK

                          AUTOMATIC DEBIT AUTHORIZATION

MEMBER FDIC

To: COMERICA BANK

Re: LOAN # ______________________________________

You are hereby authorized and instructed to charge account No. _________________
in the name of SOUNDBITE COMMUNICATIONS, INC. for principal, interest and other
payments due on above referenced loan as set forth below and credit the loan
referenced above.

          [X] Debit each interest payment as it becomes due according to the
          terms of the Amended and Restated Loan and Security Agreement and any
          renewals or amendments thereof.

          [X] Debit each principal payment as it becomes due according to the
          terms of the Amended and Restated Loan and Security Agreement and any
          renewals or amendments thereof.

          [X] Debit each payment for Bank Expenses as it becomes due according
          to the terms of the Amended and Restated Loan and Security Agreement
          and any renewals or amendments thereof.

This Authorization is to remain in full force and effect until revoked in
writing.

        Borrower Signature                            Date: August 22, 2005

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

-------------------------------------
<PAGE>

                                FOURTH AMENDMENT
                                       TO
                AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     This Fourth Amendment to Amended and Restated Loan and Security Agreement
is entered into as of July 19, 2006 (the "Amendment"), by and between COMERICA
BANK ("Bank") and SOUNDBITE COMMUNICATIONS, INC. ("Borrower").

                                    RECITALS

     Borrower and Bank are parties to that certain Amended and Restated Loan and
Security Agreement dated as of July 2, 2004, as amended, including without
limitation by that certain First Amendment to Amended and Restated Loan and
Security Agreement dated as of December 3, 2004, that certain Second Amendment
and Waiver to Amended and Restated Loan and Security Agreement dated as of May
30, 2005 and that certain Third Amendment to Amended and Restated Loan and
Security Agreement dated as of August 22, 2005 (collectively, the "Agreement").
The parties desire to amend the Agreement in accordance with the terms of this
Amendment.

     NOW, THEREFORE, the parties agree as follows:

     1. Section 1.1 of the Agreement is hereby amended to add or amend the
following defined terms to read as follows:

          "Equipment Advance" and "Equipment Advances" means, individually and
     collectively, the Facility A Equipment Advances, the Facility B Equipment
     Advances and the Facility C Equipment Advances.

          "Equipment Line C" means a credit extension of up to One Million
     Dollars ($1,000,000).

          "Facility C Equipment Advance" has the meaning set forth in Section
     2.1(d).

          "Facility C Maturity Date" means July 1, 2009.

          "LIBOR Addendum" means that certain LIBOR Addendum to Loan and
     Security Agreement by and between Bank and Borrower dated as of July 19,
     2006.

          "Revolving Maturity Date" means July 31, 2007.

          "Tranche C-1 Availability End Date" means August 19, 2006.

          "Tranche C-2 Availability End Date" means April 19, 2007.

     2. Section 2.1(d) of the Agreement is hereby amended and restated in its
entirety to read as follows:

          "(d) Equipment Advances.

               (i) Subject to and upon the terms and conditions of this
     Agreement, at any time from December 3, 2004 through June 3, 2005, Bank
     agrees to make Equipment Advances (each a "Facility A Equipment Advance"
     and, collectively, the "Facility A Equipment Advances") to Borrower in an
     aggregate amount not to exceed Three Hundred Thousand Dollars ($300,000).
     Subject to and upon the terms and conditions of this Agreement, at any time
     from August 22, 2005 through the Tranche B-3 Availability End Date, Bank
     agrees to make Equipment Advances (each a "Facility B Equipment Advance"
     and, collectively, the "Facility B Equipment Advances") to Borrower in an
     aggregate amount not to exceed Two Million Five Hundred Thousand Dollars
     ($2,500,000). In no event shall the aggregate amount of all Facility A and
     Facility B Equipment Advances exceed the Equipment Line. Subject to the
     terms and conditions of this Agreement, at any time from July 19, 2006
     through the Tranche C-2 Availability End Date, Bank agrees to make
     Equipment Advances

                                        1

<PAGE>

     (each a "Facility C Equipment Advance" and, collectively, the "Facility C
     Equipment Advances") to Borrower in an aggregate amount not to exceed One
     Million Dollars ($1,000,000). Each Equipment Advance shall not exceed one
     hundred percent (100%) of the invoice amount of new equipment and software
     purchased for use by Borrower and approved by Bank from time to time (which
     Borrower shall, in any case, have purchased within 90 days of the date of
     the corresponding Equipment Advance), excluding taxes, shipping, warranty
     charges, freight discounts and installation expense. Notwithstanding the
     foregoing, (i) the aggregate amount of all Facility A Equipment Advances
     financing software shall not exceed $50,000, (ii) in the initial Facility A
     Equipment Advance, which shall be requested on or before December 31, 2004,
     Bank will finance equipment and software purchased at any time on or after
     September 3, 2004 (the "Facility A Lookback Equipment Advance"), (iii) the
     aggregate amount of all Facility B Equipment Advances financing software
     shall not exceed $250,000, (iv) in the initial Facility B Equipment
     Advance, which shall be requested on or before August 31, 2005, Bank will
     finance equipment and software purchased at any time on or after January 1,
     2005 (the "Facility B Lookback Equipment Advance"), (v) the aggregate
     amount of all Facility C Equipment Advances financing software and
     leasehold improvements shall not exceed $250,000, and (vi) in the initial
     Facility C Equipment Advance, which shall be requested on or before the
     Tranche C-1 Availability End Date, Bank will finance equipment and software
     purchased at any time after January 1, 2006 (the "Facility C Lookback
     Equipment Advance").

               (ii) Subject to and upon the terms and conditions of this
     Agreement, Bank agrees to make the Facility B Equipment Advances to
     Borrower in three tranches, Tranche B-1, Tranche B-2 and Tranche B-3.
     Borrower may request one Equipment Advance under Tranche B-1, also referred
     to herein as the Facility B Lookback Advance, on or prior to August
     31, 2005. Borrower may request Facility B Equipment Advances under Tranche
     B-2 at any time from the date hereof through the Tranche B-2 Availability
     End Date. Borrower may request Equipment Advances under Tranche B-3 at any
     time from the Tranche B-2 Availability End Date through the Tranche B-3
     Availability End Date. Borrower may request one (1) Equipment Advance under
     Tranche C-1, also referred to herein as the Facility C Lookback Advance, on
     or prior to the Tranche C-1 Availability End Date. Borrower may request
     Facility C Equipment Advances under Tranche C-2 at any time from July
     19, 2006 through the Tranche C-2 Availability End Date.

               (iii) Interest shall accrue from the date of each Equipment
     Advance at the rate specified in Section 2.2, and shall be payable monthly
     on the first (1st) day of each month so long as any Equipment Advances are
     outstanding. Equipment Advances, once repaid, may not be reborrowed. Except
     as set forth in the LIBOR Addendum, Borrower may prepay any Equipment
     Advances without penalty or premium.

                    a) The Facility A Lookback Equipment Advance shall be
     payable in thirty six (36) equal monthly installments of principal, plus
     all accrued interest, beginning on January 1, 2005 and continuing on the
     same day of each month thereafter. Any other Facility A Equipment Advances
     that are outstanding on June 4, 2005 shall be payable in thirty (30) equal
     monthly installments of principal, plus all accrued interest, beginning on
     July 1, 2005, and continuing on the same day of each month thereafter
     through the Facility A Maturity Date, at which time all amounts due or
     owing in connection with Facility A Equipment Advances under this Section
     2.1 (d) shall be immediately due and payable.

                    b) The Facility B Lookback Equipment Advance shall be
     payable in thirty (30) equal monthly installments of principal, plus all
     accrued interest, beginning on September 1, 2005, and continuing on the
     same day of each month thereafter through the Tranche B-1 Maturity Date, at
     which time all amounts due in connection with the Facility B Lookback
     Equipment Advance made under this Section 2.1(d) shall be immediately due
     and payable.

                                        2

<PAGE>

                    c) Any Facility B Equipment Advances that are outstanding
     under Tranche B-2 on the Tranche B-2 Availability End Date shall be payable
     in thirty (30) equal monthly installments of principal, plus all accrued
     interest, beginning on March 1, 2006, and continuing on the same day of
     each month thereafter through the Tranche B-2 Maturity Date, at which time
     all amounts due in connection with Tranche B-2 Equipment Advances made
     under this Section 2.1(d) shall be immediately due and payable.

                    d) Any Facility B Equipment Advances that are outstanding
     under Tranche B-3 on the Tranche B-3 Availability End Date shall be payable
     in thirty (30) equal monthly installments of principal, plus all accrued
     interest, beginning on September 1, 2006, and continuing on the same day of
     each month thereafter through the Tranche B-3 Maturity Date, at which time
     all amounts due in connection with Tranche B-3 Equipment Advances made
     under this Section 2.1(d) shall be immediately due and payable.

                    e) The Facility C Lookback Equipment Advance shall be
     payable in thirty (30) equal monthly installments of principal, plus all
     accrued interest, beginning on September 1, 2006, and continuing on the
     same day of each month thereafter until paid in full.

                    f) Any Facility C Equipment Advances that are outstanding
     under Tranche C-2 on the Tranche C-2 Availability End Date shall be payable
     in twenty-seven (27) equal monthly installments of principal, plus all
     accrued interest, beginning on May 1, 2007, and continuing on the same day
     of each month thereafter through the Facility C Maturity Date, at which
     time all amounts due in connection with Tranche C-2 Equipment Advances made
     under this Section 2.1(d) and any other amounts owing under this Agreement
     shall be immediately due and payable.

               (iii) When Borrower desires to obtain an Equipment Advance,
     Borrower shall notify Bank (which notice shall be irrevocable) by facsimile
     transmission to be received no later than 3:30 p.m. Eastern time three (3)
     Business Days before the day on which the Equipment Advance is to be made.
     Such notice shall be substantially in the form of Exhibit B. The notice
     shall be signed by a Responsible Officer or its designee and include a copy
     of the invoice for any equipment and/or software to be financed."

     3. Section 2.2(a) of the Agreement hereby is amended and restated in its
entirety to read as follows:

          "(a) Interest Rates. Except as set forth in Section 2.2(b), the
     Advances and the Equipment Advances shall bear interest, on the outstanding
     daily balance thereof, as set forth in the LIBOR Addendum."

     4. Notwithstanding any provision in the Agreement to the contrary, Borrower
shall deliver to Bank, as soon as available, but in any event no later than July
31, 2006, audited consolidated financial statements of Borrower prepared in
accordance with GAAP, consistently applied, together with an unqualified opinion
on such financial statements of an independent certified public accounting firm
reasonably acceptable to Bank.

     5. 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 agreements entered into in connection
with the Agreement, except to the extent such security interest is being
released pursuant to this Amendment.

                                        3

<PAGE>

     6. 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.

     7. 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.

     8. 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) Certificate of Secretary;

          (c) disbursement instructions and an agreement to provide insurance;

          (d) a nonrefundable amendment fee equal to $3,000 plus an amount equal
to all Bank Expenses incurred through the date of this Amendment, which may be
debited from any of Borrower's accounts; and

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

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK]

                                        4

<PAGE>

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

                                        SOUNDBITE COMMUNICATIONS, INC.

                                        By: /s/ Christopher Hemme
                                            ------------------------------------
                                        Title: CEO
                                        Name: Christopher Hemme

                                        COMERICA BANK

                                        By: /s/ JAMES DEMOY
                                            ------------------------------------
                                        Title: VICE PRESIDENT
                                        Name: JAMES DEMOY

                                        5<PAGE>

                                                                    Exhibit 10.6

                           LOAN AND SECURITY AGREEMENT

     THIS LOAN AND SECURITY AGREEMENT NO. 340040201 (this "Agreement") is
entered into as of August 14, 2002, by and between LIGHTHOUSE CAPITAL PARTNERS
IV, L.P. ("Lender") and SOUNDBITE COMMUNICATIONS, INC., a Delaware corporation
("Borrower").

                                    RECITALS

     Borrower wishes to borrow money from time to time from Lender and Lender
desires to lend money to Borrower. This Agreement sets forth the terms on which
Lender will lend to Borrower and Borrower will repay the loan to Lender.

                                    AGREEMENT

     The parties agree as follows:

     1. DEFINITIONS AND CONSTRUCTION

          1.1 DEFINITIONS. As used in this Agreement, the following terms shall
have the following definitions:

               "Affiliate" means any Person that owns or controls directly or
indirectly five percent (5%) or more of the stock of another entity, any Person
that controls or is controlled by or is under common control with such Persons
or any Affiliate of such Persons or each of such Person's officers, directors,
joint venturers or partners.

               "Basic Rate" means a per annum rate of interest (based on a year
of 360 days and actual days elapsed) equal to 7.5%.

               "Borrower's Books" means all of Borrower's books and records
including: ledgers; records concerning Borrower's assets or liabilities, the
Collateral, business operations or financial condition; and all computer
programs, or tape files, and the equipment, containing such information.

               "Business Day" means any day that is not a Saturday, Sunday, or
other day on which banks in the State of California are authorized or required
to close.

               "Code" means the Uniform Commercial Code as adopted and in effect
in the State of California, as amended from time to time.

               "Collateral" means the Property described on EXHIBIT A attached
hereto.

               "Commitment" means $1,500,000.

               "Commitment Fee" means $10,000.00.

               "Commitment Termination Date" means June 30, 2003.

               "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 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

                                        1

<PAGE>

in respect of which that Person is otherwise directly or indirectly liable. The
amount of any Contingent Obligation shall be equal to the amount of the
obligation so guaranteed or otherwise supported.

               "Default" means any event which with the passing of time or the
giving of notice or both would become an Event of Default hereunder.

               "Default Rate" means the per annum rate of interest equal to the
Basic Rate plus 5%, but such rate shall in no event be more than the highest
rate permitted by applicable law to be charged on commercial loans.

               "Event of Default" has the meaning given to such term in SECTION
8.

               "Event of Loss" has the meaning given to that term in SECTION
6.10.

               "Final Payment" means, with respect to each Loan, a payment (in
addition to and not in substitution for the regular monthly payments of
principal and accrued interest) due on the Maturity Date, equal to the Loan
Amount for such Loan at such time multiplied by the Final Payment Percentage.

               "Final Payment Percentage" means 15%.

               "Funding Date" means any date on which a Loan is made to or on
account of Borrower under this Agreement.

               "Governmental Authority" means (a) any federal, state, county,
municipal or foreign government, or political subdivision thereof, (b) any
governmental or quasi-governmental agency, authority, board, bureau, commission,
department, instrumentality or public body, (c) any court or administrative
tribunal or (d) with respect to any Person, any arbitration tribunal or other
non-governmental authority to whose jurisdiction that Person has consented.

               "Indebtedness" means (a) all indebtedness for borrowed money or
the deferred purchase price of Property or services, including reimbursement and
other obligations with respect to surety bonds and letters of credit, (b) all
obligations evidenced by notes, bonds, debentures or similar instruments, (c)
all capital lease obligations, and (d) all Contingent Obligations.

               "Landlord Consent" means a consent in the form of EXHIBIT C or
such other form as Lender may agree to accept.

               "Lender's Expenses" means all reasonable costs or expenses
(including reasonable attorneys' fees and expenses) incurred in connection with:
(a) the preparation and negotiation (in an amount not to exceed $10,000.00) of
the Loan Documents, (b),, and enforcement of the Loan Documents; (c) the
administration of the Loan Documents (limited to out-of-pocket costs and
expenses), (d), amending or modifying the Loan Documents on the request of or
for the benefit of Borrower, and/or (e) enforcing or defending the Loan
Documents, including in the exercise of any rights or remedies afforded
hereunder or under applicable law, whether or not suit is brought.

               "Lien" means any pledge, bailment, lease, mortgage,
hypothecation, conditional sales and title retention agreement, charge, claim,
encumbrance or other lien in favor of any Person.

               "Loan" means each advance of credit or cash by Lender to Borrower
under this Agreement.

               "Loan Agreement Supplement" means a supplement to this Agreement
in substantially the form of EXHIBIT D.

                                        2

<PAGE>

               "Loan Amount" means, with respect to each Loan, as of any date,
the original principal amount of such Loan less the aggregate of all amounts
actually prepaid under SECTION 2.5 relating to prepayments of such Loan paid
prior to such date.

               "Loan Commencement Date" means, with respect to each Loan, the
first Business Day of the calendar month following the Funding Date of such
Loan.

               "Loan Documents" means, collectively, this Agreement, the
Warrant, the Landlord Consent(s) and all other documents, instruments and
agreements entered into between Borrower and Lender in connection with this
Agreement, all as amended or extended from time to time.

               "Loan Factor" means 3.0913%.

               "Maturity Date" means, with respect to each Loan, the last day of
the Repayment Period for such Loan, or the date of prepayment under SECTION 2.5.

               "Minimum Funding Amount" means $150,000.

               "Obligations" means all debt, principal, interest, fees, charges,
expenses and attorneys' fees and costs and other amounts, obligations,
convenants, and duties owing by Borrower to Lender whether pursuant to or
evidenced by the Loan Documents, or by any other loan agreement, lease, or
similar agreement between Lender and Borrower and any agreements directly
related thereto (including, without limitation, any warrant, negative pledge
agreement, security agreement, control agreement, landlord consent, or other
similar agreement entered into in connection with a loan agreement, lease or
similar agreement), and whether or not for the payment of money whether direct
or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, including the principal, interest and Final Payment due with
respect to the Loans, and including any debt, liability, or obligation owing
from Borrower to others that Lender may have obtained by assignment or
otherwise, and further including all interest not paid when due and all Lender's
Expenses that Borrower is required to pay or reimburse by the Loan Documents, by
law, or otherwise.

               "Payment Date" has the meaning given to that term in SECTION
2.4(a).

               "Permitted Liens" means the following:

                    (A) The Lien created by this Agreement;

                    (B) Liens for taxes, fees, assessments or other governmental
charges or levies, either not delinquent or being contested in good faith by
appropriate proceedings, provided the same have no superior priority over
Lender's Lien in the Collateral;

                    (C) Liens to secure payment of worker's compensation,
employment insurance, old age pensions or other social security obligations of
Borrower in the ordinary course of business of Borrower; and

               "Person" means and includes any individual, any partnership, any
corporation, any business trust, any joint stock company, any limited liability
company, any unincorporated association or any other entity and any domestic or
foreign national, state or local government, any political subdivision thereof,
and any department, agency, authority or bureau of any of the foregoing.

                                        3

<PAGE>

               "Prepayment Amount" means in the case of a mandatory prepayment
pursuant to SECTIONS 2.5(A) and 6.10, the original Stated Cost of the item of
Collateral with respect to which such prepayment relates.

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

               "Repayment Period" means, with respect to each Loan, the period
beginning on the first Payment Date of such Loan and continuing for 36 calendar
months.

               "Responsible Officer" means each of the President and the
Controller of Borrower.

               "Scheduled Payments" has the meaning given to such term in
SECTION 2.4(A).

               "Stated Cost" means with respect to an item of Collateral, the
original cost to Borrower of the item of Collateral net of any and all freight,
installation, tax and other soft costs.

               "Stipulated Loan Value" means, with respect to each Loan, the
percentage set forth in ANNEX A to the Loan Agreement Supplement for such Loan,
determined as of the Payment Date on which payment of such amount is to be made,
or if such date is not a Payment Date, on the Payment Date immediately
succeeding such date.

               "Subsidiary" means any corporation of which a majority of the
outstanding capital stock entitled to vote for the election of directors
(otherwise than as the result of a default) is owned by Borrower directly or
indirectly through Subsidiaries.

               "Summary of Loan Agreement Supplement" means, with respect to
each Loan, the "Summary of Loan Agreement Supplement" attached as ANNEX B to the
Loan Agreement Supplement prepared by Lender in connection with such Loan.

               "Term" means the period from and after the date hereof until the
payment in full of all amounts and liabilities payable under this Agreement and
the other Loan Documents, including principal and interest on the Loans and the
Final Payment with respect to each Loan.

               "Warrant" means the warrant in favor of Lender to purchase
securities of Borrower substantially in the form of EXHIBIT B.

               1.2 OTHER INTERPRETIVE PROVISIONS. References in this Agreement
to "Articles," "Sections," "Exhibits," "Schedules" and "Annexes" are to
recitals, articles, sections, exhibits, schedules and annexes herein and hereto
unless otherwise indicated. References in this Agreement and each of the other
Loan Documents to any document, instrument or agreement shall include (a) all
exhibits, schedules, annexes and other attachments thereto, (b) all documents,
instruments or agreements issued or executed in replacement thereof, and (c)
such document, instrument or agreement, or replacement or predecessor thereto,
as amended, modified and supplemented from time to time and in effect at any
given time. The words "hereof," "herein" and "hereunder" and words of similar
import when used in this Agreement or any other Loan Document shall refer to
this Agreement or such other Loan Document, as the case may be, as a whole and
not to any particular provision of this Agreement or such other Loan Document,
as the case may be. The words "include" and "including" and words or similar
import when used in this Agreement or any other Loan Document shall not be
construed to be limiting or exclusive. Unless otherwise indicated in this
Agreement or any other Loan Document, all accounting terms used in this
Agreement or any other Loan Document shall be construed, and all accounting and
financial computations hereunder or thereunder shall be computed, in accordance
with generally accepted accounting principles as in effect in the United States
of America from time to time.

                                        4

<PAGE>

     2. LOAN AND TERMS OF PAYMENT

          2.1 COMMITMENT. Subject to the terms and conditions of this Agreement
and relying upon the representations and warranties herein set forth as and when
made or deemed to be made, Lender agrees to lend to Borrower, from time to time
prior to the Commitment Termination Date, the Loans; provided that the aggregate
principal amount of the Loans shall not exceed the Commitment at such time;
provided further, that the aggregate principal amount of any Loan shall not
exceed (i) in the case of new equipment (i.e. equipment delivered to Borrower
not more than 90 days prior to the Funding Date of such Loan), the aggregate
cost to Borrower of the equipment financed with such Loan net of any and all
freight, installation, tax and other soft costs or (ii) in the case of used
equipment, the lower of the net book value or the fair market value reasonably
assigned to such item of used equipment by Lender, after consultation with
Borrower, at the time of making the Loan financing such item of used Equipment
provided further that such financed personal property is delivered to Borrower
within ninety (90) days of the Funding Date for such personal property.
Notwithstanding the foregoing and only with respect to the first Loan hereunder,
Equipment purchased on or after March 1, 2002 shall be financed. If prepaid, the
principal of the Loans may not be re-borrowed.

          2.2 USE OF PROCEEDS; THE LOAN.

               (A) USE OF PROCEEDS. The proceeds of the Loan shall be used
solely for the acquisition of computers, peripherals, analytical and test
equipment, laboratory equipment and furniture, office furniture and equipment
and other equipment as approved by Lender. Up to Four Hundred Fifty Thousand
Dollars ($450,000) may be used to finance software, leasehold improvements and
other soft costs.

               (B) THE LOANS. The Loans shall be repayable in consecutive
monthly installments in accordance with the terms of SECTION 2.4. Lender may,
and is hereby authorized by Borrower to, endorse in its books and records
appropriate notations regarding Lender's interest in the Loans; provided,
however, that the failure to make, or an error in making, any such notation
shall not limit or otherwise affect the Obligations of Borrower hereunder.

          2.3 PROCEDURE FOR MAKING LOAN.

               (A) NOTICE. Whenever Borrower desires that Lender make a Loan,
Borrower shall so notify Lender in writing (or by telephone with prompt
confirmation in writing) at least ten Business Days in advance of the desired
Funding Date, which notice shall be irrevocable. Lender's obligation to make
Loans shall be expressly subject to the satisfaction of the conditions set forth
in SECTIONS 3.1 with respect to the initial Loan and Section 3.2 with respect to
the initial Loan and each subsequent Loan. Lender shall have the right,
exercisable at any time, to request that Borrower furnish Lender with such
additional information with respect to the Loans as Lender shall reasonably
request.

               (B) LOAN INTEREST RATE. Borrower shall pay interest on the unpaid
principal amount of each Loan from the Loan Commencement Date until such Loan
has been paid in full, at a per annum rate of interest equal to the Basic Rate.
The Basic Rate shall be fixed for the Repayment Period and shall not be subject
to change in the absence of a manifest error. All computations of interest on
each Loan shall be based on a year of 360 days for actual days elapsed.
Notwithstanding any other provision hereof, the amount of interest payable
hereunder shall not in any event exceed the maximum amount permitted by the law
applicable to interest charged on commercial loans.

               (C) STIPULATED LOAN VALUE CALCULATION. On each Loan Commencement
Date, Lender shall calculate a schedule of Stipulated Loan Values with respect
to the applicable Loan, The schedule of Stipulated Loan Values applicable to
such Loan shall be set forth in the Loan Agreement Supplement prepared by Lender
with respect to such Loan and shall be conclusive in the absence of a manifest
error.

               (D) DISBURSEMENT. Subject to the satisfaction of the conditions
set forth in SECTIONS 3.1 and 3.2 with respect to the initial Loan and the
satisfaction of the conditions set forth in SECTION 3.2 with respect to each
subsequent Loan. Lender shall disburse the Loans.

                                        5

<PAGE>

               (E) TERMINATION OF COMMITMENT TO LEND. Notwithstanding anything
in the Loan Documents, Lender's obligation to lend the undisbursed portion of
the Commitment to Borrower hereunder shall terminate on the earlier of (i) at
the Lender's sole election, the occurrence and continuance of any Default or
Event of Default hereunder, and (ii) the Commitment Termination Date.
Notwithstanding the foregoing, Lender's obligation to lend the undisbursed
portion of the Commitment to Borrower shall terminate if, in Lender's sole
judgment, there has been a material adverse change in the general affairs,
management, results of operations or condition (financial or otherwise) of
Borrower, whether or not arising from transactions in the ordinary course of
business, or Borrower engages in any business other than telecommunications
services, including interactive voice messaging, as determined by Lender in its
sole discretion.

          2.4 AMORTIZATION OF PRINCIPAL AND INTEREST; INTERIM PAYMENT; FINAL
PAYMENT; COMMITMENT FEE; LENDER'S EXPENSES.

               (A) PRINCIPAL AND INTEREST PAYMENTS ON PAYMENT DATES. Borrower
shall make payments of principal and accrued interest in advance for each Loan
(collectively, "Scheduled Payments"), commencing on the Loan Commencement Date
(or commencing on the Funding Date if the Funding Date is the first Business Day
of the calendar month) with respect to such Loan and continuing thereafter
during the Repayment Period on the first Business Day of each calendar month
(each a "Payment Date"), in an amount equal to the Loan Factor multiplied by the
Loan Amount for such Loan as of such Payment Date. In any event, all unpaid
principal and accrued interest shall be due and payable in full on the last
Payment Date with respect to such Loan.

               (B) INTERIM PAYMENT. In addition to the Scheduled Payments, on
the Loan Commencement Date for the Loan (unless the Funding Date is the first
Business Day of the calendar month) Borrower shall pay to Lender an amount (the
"Interim Payment") equal to the Loan Amount multiplied by the product of (i) the
quotient derived from dividing the Basic Rate by three hundred and sixty (360),
and (ii) the number of days from the Funding Date of the Loan until the first
Payment Date with respect to the Loan.

               (C) FINAL PAYMENT. On the Maturity Date, Borrower shall pay, in
addition to the unpaid principal and accrued interest and all other amounts due
on such date with respect to such Loan, an amount equal to the Final Payment
with respect to such Loan.

               (D) COMMITMENT FEE; LENDER'S EXPENSES. The Commitment Fee shall
be applied to in the following order: to Lender's Expenses, Interim Payments,
the first month's payment and every subsequent payment until fully applied.
Borrower shall pay Lender's Expenses upon demand.

               (E) LATE FEES. A late charge ("Late Fee") on any Scheduled
Payments or other sums due hereunder which are past due, in an amount equal to
2% of the past due amount, payable on demand. Prior to acceleration of the
Obligations by Lender following an Event of Default, Lender may charge a Late
Fee, but default interest (at the Default Rate) shall not be charged. Following
acceleration of the Obligations by Lender after an Event of Default, Lender may
charge default interest (at the Default Rate), but shall not charge Late Fees.

          2.5 PREPAYMENTS.

               (A) PREPAYMENT UPON AN EVENT OF LOSS. If any Collateral is
subject to an Event of Loss and Borrower is required to or elects to prepay the
Loans with respect to such Collateral pursuant to SECTION 6.10, then the Loans
shall be prepaid to the extent and in the manner provided in such section.

               (B) MANDATORY PREPAYMENT UPON AN ACCELERATION. If the Loans are
accelerated following the occurrence of an Event of Default (other than
following an Event of Loss), then Borrower shall immediately pay to Lender (i)
all unpaid Interim and/or Scheduled Payments with respect to the Loans due prior
to the date of prepayment, (ii) the Stipulated Loan Value with respect to each
Loan multiplied by the Loan Amount of such Loan, and (iii) the Final Payment,
and (iv) all other sums, if any, that shall have become due and payable
hereunder with respect to such Loan.

                                        6

<PAGE>

               (C) VOLUNTARY PREPAYMENT. Borrower may voluntarily prepay the
Loans, provided that each of the following conditions is satisfied: Borrower
pays to Lender (i) all unpaid Interim Payments and/or Scheduled Payments with
respect to the Loans due prior to the date of prepayment, (ii) the outstanding
principal amount of the Loans and any unpaid accrued interest, (iii) the Final
Payment, and (iv) all other sums, if any, that shall have become due and payable
hereunder with respect to the Loans.

          2.6 OTHER PAYMENT TERMS.

               (A) PLACE AND MANNER. Borrower shall make all payments due to
Lender at the address specified in SECTION 11, in lawful money of the United
States and in same day or immediately available funds.

               (B) DATE. Whenever any payment due hereunder shall fall due on a
day other than a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall be included in the computation of
interest or fees, as the case may be. If payment is due on a day other than a
Business Day, failure to pay on such day shall not be an Event of Default, but
failure to pay on the next succeeding Business Day shall be an Event of Default.

               (C) DEFAULT RATE. If either (i) any amounts required to be paid
by Borrower under this Agreement or the other Loan Documents (including
principal, interest, the Final Payment payable with respect to any Loan, and any
fees or other amounts) remain unpaid after such amounts are due, or (ii) an
Event of Default has occurred and is continuing, Borrower shall pay interest on
the aggregate, outstanding balance hereunder from the date due or from the date
of the Event of Default, as applicable, until such past due amounts are paid in
full or until all Events of Defaults are cured, as applicable, at a per annum
rate equal to the Default Rate. All computations of such interest shall be based
on a year of 360 days for actual days elapsed.

          2.7 MINIMUM FUNDING AMOUNT. Except with the prior consent of Lender,
in Lender's sole discretion, the amount of the requested Loan shall not be less
than the Minimum Funding Amount.

          2.8 CREDITING PAYMENTS. The receipt by Lender of any wire transfer of
funds, check, or other item of payment shall be immediately applied
conditionally to reduce Obligations, but shall not be considered a payment on
account unless such wire transfer is of immediately available federal funds and
is made to the appropriate deposit account of Lender or unless and until such
check or other item of payment is honored when presented for payment.
Notwithstanding anything to the contrary contained herein, any wire transfer or
payment received by Lender after 11:00 a.m. California time shall be deemed to
have been received by Lender as of the opening of business on the immediately
following Business Day.

          2.9 TERM. This Agreement shall become effective upon acceptance by
Lender and shall continue in full force and effect during the Term.
Notwithstanding the foregoing, Lender shall have the right to terminate this
Agreement immediately and without notice upon the occurrence of an Event of
Default.

     3. CONDITIONS OF LOANS

          3.1 CONDITIONS PRECEDENT TO INITIAL LOAN. The obligation of Lender to
make the initial Loan is subject to the condition precedent that Lender shall
have received, in form and substance satisfactory to Lender, all of the
following:

               (A) This Agreement duly executed by Borrower.

               (B) The Warrant to be issued to Lender duly executed by Borrower.

               (C) Borrower shall obtain a Landlord Consent from the owner of
the building in which Collateral is to be located.

                                        7

<PAGE>

               (D) An officer's certificate of Borrower with copies of the
following documents attached: (i) the certificate of incorporation certified by
the secretary of state and bylaws of Borrower certified by Borrower as being in
full force and effect on the Funding Date, (ii) incumbency and representative
signatures, and (iii) resolutions authorizing the execution and delivery of this
Agreement and each of the other Loan Documents.

               (E) A good standing certificate from Borrower's state of
incorporation and the state in which Borrower's principal place of business is
located, together with certificates of the applicable governmental authorities
stating that Borrower is in compliance with the franchise tax laws of each such
state, each dated as of a recent date.

               (F) Evidence of the insurance coverage required by SECTION 6.9 of
this Agreement.

               (G) All necessary consents of shareholders and other third
parties with respect to the execution, delivery and performance of this
Agreement, the Warrant and the other Loan Documents.

               (H) Payment of any unreimbursed Lender's Expenses.

               (I) Such other documents, and completion of such other matters,
as Lender may reasonably request.

          3.2 CONDITIONS PRECEDENT TO ALL LOANS. The obligation of Lender to
make each Loan, including the initial Loan, is further subject to the following
conditions:

               (A) Evidence that no Default or Event of Default has occurred and
is continuing.

               (B) Borrower shall have provided to Lender with respect to the
Collateral, copies of vendor invoices, bills of sale, receipts, agreements,
proof of payment, and other documents as Lender shall reasonably request to
evidence the ownership by Borrower of, the payment in full of the purchase price
of, and the fair market value of, such Collateral, each in form and substance
reasonably satisfactory to Lender.

               (C) Borrower and Lender shall have executed a Loan Agreement
Supplement with respect to the proposed Loan.

               (D) To the extent not already delivered to Lender, Lender shall
have received such documents, instruments and agreements, including UCC
financing statements or amendments to UCC financing statements, as Lender shall
reasonably request to evidence the perfection and priority of the security
interests granted to Lender pursuant to SECTION 4.

               (E) Borrower shall have delivered to Lender a subordination
agreement, release, or estoppel letter, as appropriate, from any Person having
an existing Lien superior to the Lien of Lender on any item of Collateral;
including, without limitation, Comerica.

               (F) Such other documents, and completion of such other matters,
as Lender may reasonably request.

          3.3 COVENANT TO DELIVER. Borrower agrees (not as a condition but as a
covenant) to deliver to Lender each item required to be delivered to Lender as a
condition to the Loan, if such Loan is advanced. Borrower expressly agrees that
the extension of such Loan prior to the receipt by Lender of any such item shall
not constitute a waiver by Lender of Borrower's obligation to deliver such item.

     4. CREATION OF SECURITY INTEREST

                                        8

<PAGE>

          4.1 GRANT OF SECURITY INTEREST. Borrower grants to Lender a valid,
first priority, continuing security interest in all presently existing and
hereafter acquired or arising Collateral, subject only to Permitted Liens, in
order to secure prompt, full and complete payment of any and all Obligations and
in order to secure prompt, full and complete performance by Borrower of each of
its covenants and duties under each of the Loan Documents.

          4.2 DURATION OF SECURITY INTEREST. Lender's security interest in the
Collateral shall continue until the payment in full and the satisfaction of all
Obligations, whereupon such security interest shall terminate; provided,
however, if any item of Collateral is subject to an Event of Loss, then
following the prepayment of the Loan with respect to such item pursuant to
SECTION 2.5, Lender shall release its security interest in such item of
Collateral. Lender shall, at Borrower's sole cost and expense, execute and
Borrower is authorized to file such further documents and take such further
actions as may be necessary to effect the release contemplated by this SECTION
4.2, including duly executing and delivering termination statements for filing
in all relevant jurisdictions under the Code.

          4.3 POSSESSION OF COLLATERAL. So long as no Event of Default has
occurred and is continuing, Borrower shall remain in full possession, enjoyment
and control of the Collateral (except only as may be otherwise required by
Lender for perfection of their security interest therein) and shall be entitled
to manage, operate and use the same and each part thereof with the rights and
franchises appertaining thereto; provided, however, that the possession,
enjoyment, control and use of the Collateral shall at all times be subject to
the observance and performance of the terms of this Agreement.

          4.4 MARKINGS ON THE COLLATERAL. At Lender's request at any time during
the Term of the Loan (including any extension thereof), Borrower shall place in
a conspicuous location on each item of Collateral a plaque or other marking to
be supplied by Lender which reads substantially as follows:

          Lighthouse Capital Partners IV, L.P. has a first priority security
interest in this item of equipment.

Such plaque or other marking shall not be removed (or if removed or damaged such
plaque or other marking shall be replaced) until the security interest in favor
of Lender in such item of Collateral is terminated pursuant to this Agreement.

          4.5 DELIVERY OF ADDITIONAL DOCUMENTATION REQUIRED. Borrower shall from
time to time execute and deliver to Lender, all financing statements and other
documents such Lender may reasonably request, in form satisfactory to Lender, to
perfect and continue Lender's perfected security interests in the Collateral,
subject only to Permitted Liens, and in order to consummate fully all of the
transactions contemplated under the Loan Documents.

          4.6 RIGHT TO INSPECT. Lender (through any of its officers, employees,
or agents) shall have the right, upon reasonable prior notice, from time to time
during Borrower's usual business hours, to inspect Borrower's Books and to make
copies thereof and to check, test, and appraise the Collateral in order to
verify Borrower's financial condition or the amount, condition of, or any other
matter relating to, the Collateral. Prior to an Event of Default, Lender shall
not exercise its rights set forth in this Section 4.6 more than twice per
calendar year.

     5. REPRESENTATIONS AND WARRANTIES

          Borrower represents, warrants and covenants as follows:

          5.1 DUE ORGANIZATION AND QUALIFICATION. Borrower is a corporation duly
existing and in good standing under the laws of its state of incorporation and
qualified and licensed to do business in, and is in good standing in, any state
in which the conduct of its business or its ownership of Property requires that
it be so qualified or in which the Collateral is located, except for such states
as to which any failure so to qualify would not have a material adverse effect
on Borrower.

                                        9

<PAGE>

          5.2 AUTHORITY. Borrower has all necessary power and authority to
execute, deliver, and perform in accordance with the terms thereof, the Loan
Documents to which it is a party. Borrower has all requisite power and authority
to own and operate its properties and to carry on its businesses as now
conducted.

          5.3 SUBSIDIARIES. Borrower has no Subsidiaries.

          5.4 CONFLICT WITH OTHER INSTRUMENTS, ETC. Neither the execution and
delivery of any Loan Document to which Borrower is a party nor the consummation
of the transactions therein contemplated nor compliance with the terms,
conditions and provisions thereof will conflict with or result in a breach of;
(a) any of the terms, conditions or provisions of the certificate of
incorporation and the by-laws, or other organizational documents of Borrower, or
(b) any law or any regulation, order, writ, injunction or decree of any court or
governmental instrumentality material to the business of Borrower or its ability
to perform in accordance with the Loan Documents, or (c) any material agreement
or instrument to which Borrower is a party or by which it or any of its
properties is bound or to which it or any of its properties is subject, or
constitute a default thereunder or result in the creation or imposition of any
Lien, other than Permitted Liens.

          5.5 AUTHORIZATION; ENFORCEABILITY. The execution and delivery of this
Agreement, the granting of the security interest in the Collateral, the
incurring of the Loans, the execution and delivery of the other Loan Documents
to which Borrower is a party and the consummation of the transactions herein and
therein contemplated have each been duly authorized by all necessary action on
the part of Borrower. The Loan Documents have been duly executed and delivered
and constitute legal, valid and binding obligations of Borrower, enforceable in
accordance with their respective terms, except as the enforceability thereof may
be limited by bankruptcy, insolvency or other similar laws of general
application relating to or affecting the enforcement of creditors' rights or by
general principles of equity.

          5.6 NO PRIOR ENCUMBRANCES. Borrower has good and indefeasible title to
the Collateral, free and clear of liens, claims, security interests, or
encumbrances, except for the first priority lien held by the Lender and except
for other Permitted Liens. Borrower has not acquired any part of the Collateral
from an assignor outside the ordinary course of such assignor's business.

          5.7 NAME; LOCATION OF CHIEF EXECUTIVE OFFICE, PRINCIPAL PLACE OF
BUSINESS AND COLLATERAL. Borrower has not done business under any name other
than that specified on the signature page hereof and "SoundBite Corporation",
The chief executive office, principal place of business, and the place where
Borrower maintains its records concerning the Collateral are presently located
at the address set forth in SECTION 11. The Collateral is presently located at
the addresses set forth in SECTION 11.

          5.8 LITIGATION. There are no actions or proceedings pending by or
against Borrower before any court or administrative agency in which an adverse
decision could reasonably be expected to have a material adverse effect on
Borrower or the aggregate value of the Collateral. Borrower does not have
knowledge of any such pending or threatened actions or proceedings. Borrower
will promptly notify Lender in writing if any action, proceeding or governmental
investigation involving Borrower is commenced that could reasonably be expected
to result in damages or costs to Borrower of One Hundred Thousand Dollars
($100,000) or more.

          5.9 FINANCIAL STATEMENTS. All financial statements relating to
Borrower that have been delivered by Borrower to Lender present fairly in all
material respects Borrower's financial condition as of the date thereof and
Borrower's results of operations for the period then ended.

          5.10 SOLVENCY. Borrower is solvent and able to pay its debts
(including trade debts) as they mature.

          5.11 TAXES. Borrower has filed or caused to be filed, or filed an
extension with respect to, all tax returns required to be filed, and has paid,
or has made adequate provision for the payment of, all taxes that are due and
payable.

                                       10

<PAGE>

          5.12 CONSENTS AND APPROVALS. No approval, authorization or consent of
any trustee or holder of any indebtedness or obligation of Borrower or of any
other Person under any such material agreement, contract, lease or license or
similar document or instrument to which Borrower is a party or by which Borrower
is bound, is required to be obtained by Borrower in order to make or consummate
the transactions contemplated under the Loan Documents except for such
approvals, authorizations or consents that have already been obtained. All
material consents and approvals of, filings and registrations with, and other
actions in respect of, all Governmental Authorities required to be obtained by
Borrower in order to make or consummate the transactions contemplated under the
Loan Documents have been, of prior to the time when required will have been,
obtained, given, filed or taken and are or will be in full force and effect.

          5.13 TRADEMARKS, PATENTS, COPYRIGHTS, FRANCHISES AND LICENSES.
Borrower possesses and owns all necessary trademarks, trade names, copyrights,
patents, patent rights, franchises and licenses which are material to the
conduct of its business as now operated.

          5.14 MATERIAL CONTRACTS. Upon request, Borrower shall disclose to
Lender in "writing all currently effective material contracts and agreements
(whether written or oral) to which Borrower is a party. Borrower shall determine
in its reasonable discretion which contracts are material, but material
contracts shall include any contract or agreement involving payments in excess
of $100,000. There are no material defaults under any such contract or agreement
by Borrower. Borrower has made available to Lender true and correct copies of
all such contracts or agreements (or, with respect to oral contracts or
agreements, written descriptions of the material terms thereof).

          5.15 FULL DISCLOSURE. No representation, warranty or other statement
made by Borrower in any Loan Document, certificate or written statement
furnished to Lender contained any untrue statement of a material fact or omitted
to state a material fact necessary in order to make the statements contained in
such certificates or statements not misleading when made.

     6. AFFIRMATIVE COVENANTS

          Borrower covenants and agrees that, until the full and complete
payment of the Obligations under this Agreement and the termination of the
Commitments, Borrower shall do all of the following:

          6.1 GOOD STANDING. Borrower shall maintain its corporate existence and
its good standing in its jurisdiction of incorporation and maintain
qualification in each jurisdiction in which the failure to so qualify could have
a material adverse effect on the financial condition, operations or business of
Borrower. Borrower shall maintain in force all licenses, approvals and
agreements, the loss of which could have a material adverse effect on its
financial condition, operations or business.

          6.2 GOVERNMENT COMPLIANCE. Borrower shall comply with all statutes,
laws, ordinances and government rules and regulations to which it is subject,
noncompliance with which could materially adversely affect the financial
condition, operations or business of Borrower.

          6.3 FINANCIAL STATEMENTS, REPORTS, CERTIFICATES. Borrower shall
deliver to Lender: (a) as soon as available, but in any event within thirty (30)
days after the end of each calendar month, a company prepared balance sheet,
income statement and cash flow statement covering Borrower's operations during
such period, certified by a Responsible Officer; (b) as soon as available, but
in any event within one hundred twenty (120) days after the end of Borrower's
fiscal year, audited financial statements of Borrower prepared in accordance
with generally accepted accounting principles, consistently applied, together
with an unqualified (other than a going concern qualification) opinion on such
financial statements of a nationally recognized or other independent public
accounting firm reasonably acceptable to Lender; (c) promptly upon becoming
available, copies of all statements, reports and notices sent or made available
generally by Borrower to its security holders; and (d) such other financial
information as Lender may reasonably request from time to time.

                                       11

<PAGE>

          6.4 CERTIFICATES OF COMPLIANCE. Each time financial statements are
furnished pursuant to SECTION 6.3 above, there shall be delivered to Lender a
certificate signed by a Responsible Officer (each an "Officer's Certificate")
with respect to such financial reports to the effect that: (i) no Event of
Default has occurred and is continuing hereunder since the date of this
Agreement or, if later, since the date of the prior Officer's Certificate or, if
such an event or condition has occurred and is continuing, the nature and extent
thereof and the action Borrower proposes to take with respect thereto, and (ii)
Borrower is in compliance with the provisions of SECTIONS 6 AND 7.

          6.5 NOTICE OF DEFAULTS. As soon as possible, and in any event within
five (5) days after the discovery of an Event of Default, provide Lender with an
Officer's Certificate of Borrower setting forth the facts relating to or giving
rise to such Event of Default and the action which Borrower proposes to take
with respect thereto.

          6.6 NOTICE OF EVENT OF LOSS; REAL PROPERTY LEASES. As soon as
possible, and in any event within ten (10) days thereafter, Borrower shall
notify Lender in writing in reasonable detail of any Event of Loss. Borrower
shall notify Lender in writing of any failure to pay any rent when due within
five (5) days of its failure to do so, and shall immediately provide written
notice to Lender of any lease termination or receipt of any notice from the
landlord indicated intent to terminate the lease.

          6.7 TAXES. Borrower shall make due and timely payment or deposit of
all federal, state, and local taxes, assessments, or contributions required of
it by law or imposed upon any properties belonging to it which Borrower is aware
of or which is material to the business of Borrower or its ability to perform
under the Loan Documents, and will execute and deliver to Lender, on demand,
appropriate certificates attesting to the payment or deposit thereof. Borrower
shall make due and timely payment or deposit of all federal, state, and local
taxes, assessments, or contributions required of it by law or imposed upon any
properties belonging to it if the failure to pay or deposit such amounts will
result in a Lien on the Collateral other than a Permitted Lien. Borrower will
make timely payment or deposit of all tax payments and withholding taxes
required of it by applicable laws, including those laws concerning F.I.C.A.,
F.U.T.A., state disability, and local, state, and federal income taxes, and
will, upon request, furnish Lender with proof satisfactory to Lender indicating
that Borrower has made such payments or deposits; provided that Borrower need
not make any payment if the amount or validity of such payment is contested in
good faith by appropriate proceedings and is adequately reserved against by
Borrower.

          6.8 USE; MAINTENANCE.

               (a) Borrower, at its expense, shall make all necessary site
preparations and cause all Collateral to be operated in material compliance with
any applicable manufacturer's manuals or instructions. So long as no Event of
Default has occurred and is continuing, Borrower shall have the light to quietly
possess and use the Collateral as provided herein without interference by Lender
(except as may be otherwise required by Lender for perfection of its security
interest).

               (b) Borrower, at its expense, shall maintain the Collateral in
good condition, reasonable wear and tear excepted, and will comply in all
material respects with all laws, rules and regulations to which the use and
operation of the Collateral may be or become subject. Such obligation shall
extend to repair and replacement of any partial loss or damage to the
Collateral, regardless of the cause, If maintenance is mandated by manufacturer,
Borrower shall obtain and keep in effect, at all times during the Term
maintenance service contracts with suppliers approved by Lender, such approval
not to be unreasonably withheld. All parts furnished in connection with such
maintenance or repair shall immediately become part of the Collateral. All such
maintenance, repair and replacement services shall be promptly paid for and
discharged by Borrower with the result that no Lien will attach to the
Collateral.

          6.9 INSURANCE.

                                       12

<PAGE>

          (A) Borrower, at its own expense, shall obtain and maintain in amounts
and coverages reasonably requested by Lender (a) insurance against loss or
damage to the Collateral, (b) commercial general liability insurance, including
contractual liability, products liability and completed operations coverage
according to standard industry practices, The amount of insurance covering loss
or damage to the Collateral shall be the greater of (i) the replacement value of
the Collateral (as new) or (ii) the outstanding principal amount of the funds
disbursed hereunder and all other then outstanding amounts payable under the
Loan Documents.

          (B) The amount of commercial general public liability insurance (other
than products liability coverage and completed operations insurance) shall be at
least $2,000,000 per occurrence. The amount of such products liability and
completed operations insurance shall be at least $2,000,000 per occurrence. The
deductible with respect to insurance against loss or damage to the Collateral
and product liability insurance shall not exceed $50,000; otherwise there shall
be no deductible with respect to any insurance required to be maintained
hereunder without the prior written approval of Lender. Each such insurance
policy shall: (i) name Lender loss payee or additional insured, as appropriate,
(ii) provide for insurer's waiver of its right of subrogation against Lender and
Borrower, (iii) provide that such insurance shall not be invalidated by any
action of, or breach of warranty by, Borrower and waive set-off,
counterclaim or offset against Lender, (iv) provide that Borrower's insurance
shall be primary without a right of contribution of Lender's insurance, if any,
or any obligation on the part of Lender to pay premiums of Borrower, and (v)
require the insurer to give Lender at least thirty (30) days prior written
notice of cancellation. Borrower shall, on or prior to the first disbursement of
funds hereunder and prior to each policy renewal, furnish to Lender
certificates of insurance. Borrower shall give Lender prompt notice of any
damage to, or loss of any Collateral which exceeds Fifty Thousand Dollars
($50,000) in the aggregate.

     6.10 LOSS; DAMAGE; DESTRUCTION AND SEIZURE.

          (A) Borrower shall bear the risk of the Collateral being lost, stolen,
destroyed, damaged beyond repair, rendered permanently unfit for use, or seized
by a governmental authority for any reason whatsoever at any time until the
expiration or termination of the Term.

          (B) If during the Term any item of Collateral is lost, stolen,
destroyed, damaged beyond repair, rendered permanently unfit for use, or seized
by a governmental authority for any reason whatsoever for a period equal to at
least the remainder of the Term (an "Event of Loss"), then in each case Lender
shall receive from the proceeds of insurance maintained pursuant to SECTION 6.9,
from any award paid by the seizing governmental authority or, to the extent not
received from the proceeds of insurance or award or both, from Borrower, on or
before the Payment Date next succeeding such Event of Loss, an amount equal to
the sum of: (i) all accrued and unpaid Interim Payments and Scheduled Payments
with, respect to such Loan due prior to the next such Payment Date, (ii) a
prepayment in an amount equal to the Stipulated Loan Value with respect to such
Loan multiplied by the Prepayment Amount of each affected item of Collateral and
(iii) all other sums, if any, that shall have become due and payable hereunder
with respect to such Loan, including interest at the Default Rate with respect
to any past due amounts. On the date of receipt by Lender of the amount
specified above with respect to each such item of Collateral subject to an Event
of Loss, this Agreement shall terminate as to such Collateral. Notwithstanding
the foregoing and except as provided in SECTION 6.10(C), any proceeds of
insurance maintained by Borrower pursuant to SECTION 6.9 and received by
Borrower, or awards received from governmental authorities, shall be paid to
Lender promptly upon their receipt by Borrower. If any proceeds of insurance or
awards received from governmental authorities are in excess of the amount owed
under this SECTION 6.10, Lender shall promptly remit to Borrower the amount in
excess of the amount owed to Lender.

          (C) So long as no Event of Default has occurred and is continuing, any
proceeds of insurance maintained pursuant to SECTION 6.9 received by Lender or
Borrower with respect to an item of Collateral, the repair of which is
practicable, shall, at the election of Borrower, be applied either to the repair
or replacement of such Collateral or, upon Lender's receipt of evidence of the
repair or replacement of the Collateral reasonably satisfactory to Lender, to
the reimbursement of Borrower for the cost of such repair or replacement. All
replacement parts and equipment acquired by Borrower in replacement of
Collateral pursuant to this SECTION 6.10(C) shall immediately become part of the
Collateral upon acquisition by Borrower. Borrower shall take such actions and
provide such documentation

                                       13

<PAGE>

as may be reasonably requested by Lender to protect and preserve its first
priority security interest and otherwise to avoid any impairment of Lender's
rights under the Loan Documents in connection with such repair or replacement.

     6.11 RIGHT TO PURCHASE SECURITIES.

          (A) Borrower hereby grants Lender the one-time right, to be exercised
in such Lender's sole discretion, to purchase up to $150,000 of Next Round Stock
(as defined below) at the Next Round Closing (as defined below), at a price per
share no greater than that paid by the lead investor for a share of Next Round
Stock, and in connection with such right, Borrower agrees to deliver written
notice to Lender at least ten days before the Next Round Closing clearly
referring to this Agreement and informing Lender of its right to purchase the
Next Round Stock; (ii) that Lender's rights with respect to such Next Round
Stock (including, without limitation, any registration or informational rights
and any rights of first refusal) shall be no less favorable than the rights
granted to any of the other purchasers of Next Round Stock; and (iii) that
Lender must become party to those agreements relating to the Next Round Stock
and the rights described above that the other investors in Next Round Stock
execute.

          (B) As used in this SECTION 6.11, (i) "Next Round Financing" means the
Borrower's next bona fide round of preferred stock equity financing after the
date hereof resulting in net aggregate proceeds to the Borrower of at least
$3,000,000.00; (ii) "Next Round Closing" means the date on which the Next Round
Financing closes; and (iii) "Next Round Stock" means the class or series of
equity securities issued in connection with the Next Round Financing.

          (C) Any other term or provision of this Agreement to the contrary
notwithstanding, the provisions of this SECTION 6.11 shall survive satisfaction
of the Obligations, the termination of the Commitments, and termination of this
Agreement. Notwithstanding the foregoing, the provisions of this Section 6.11
shall terminate upon an initial Public Offering (as such term is defined in the
Warrant) of the Borrower's stock and the acceleration of the Obligations by
Lender following an Event of Default.

          6.12 FURTHER ASSURANCES; FULL DISCLOSURE.; Financial Statements. At
any time and from time to time Borrower shall execute and deliver such further
instruments and take such further action as may reasonably be requested by
Lender to effect the purposes of this Agreement. Borrower agrees that no
representation, warranty or other statement made by Borrower in any Loan
Document, certificate or written statement to be furnished to Lender shall
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements contained in such certificates or
statements not misleading when made. Borrower agrees that all financial
statements relating to Borrower that have been or will be delivered by Borrower
to Lender present fairly in all material respects Borrower's financial condition
as of the date thereof and Borrower's results of operations for the period then
ended.

     7. NEGATIVE COVENANTS

          Borrower covenants and agrees that until the full and complete payment
of the Obligations under this Agreement and termination of the Commitments,
Borrower will not do any of the following:

          7.1 CHIEF EXECUTIVE OFFICE; LOCATION OF COLLATERAL. During the
continuance of this Agreement, change the chief executive office or principal
place of business from the premises listed in SECTION 11, change its state of
incorporation, or remove or cause to be removed the Collateral or records
concerning the Collateral from the premises indicated in the applicable Loan
Agreement Supplement without twenty (20) days prior written notice to Lender;
provided, however, in no event shall the chief executive office, state of
incorporation, principal place of business, the Collateral or records be moved
outside of the United States.

          7.2 EXTRAORDINARY TRANSACTIONS AND DISPOSAL OF ASSETS. Enter into any
transaction without Lender's consent, which consent will not be unreasonably
withheld with respect to matters other than Collateral but which may be withheld
at Lender's sole and absolute discretion with respect to Collateral, not in the
ordinary and usual

                                       14

<PAGE>

course of Borrower's business, including the sale, lease, license or other
disposition of, moving, relocation, or transfer, whether by sale or otherwise,
of Borrower's assets, other than (i) sales of inventory (other than inventory
financed with a Loan) in the ordinary and usual course of Borrower's business as
presently conducted (ii) sales or other dispositions in the ordinary course of
business of equipment (other than Collateral) that has become worn out or
obsolete or that is promptly being replaced; and (iii) nonexclusive leases
and/or licenses in the ordinary course of business of Borrower's intellectual
property. Notwithstanding the foregoing, Borrower shall be permitted to move
assets between its facilities provided that all other provisions of this
Agreement have been complied with, including, without limitation, delivering to
Lender a Landlord Consent with respect to any facility where the Collateral is
located.

          7.3 RESTRUCTURE. Change Borrower's name; make any material change in
Borrower's financial structure or business operations (other than through the
sale of preferred stock to equity investors in the ordinary course of business)
which could reasonably be expected to have a material adverse effect on Lender,
the Collateral or the Loans; other than through the sale of preferred stock to
equity investors in the ordinary course of business, cause, permit, or suffer a
change in control, such that stockholders of Borrower on the date hereof no
longer own a majority of the capital stock of Borrower (on a fully-diluted
basis); or suspend operation of Borrower's business.

          7.4 LIENS. Create, incur, assume or suffer to exist any Lien or any
other encumbrance of any kind with respect to any of the Collateral, whether now
owned or hereafter acquired, except for Permitted Liens.

          7.5 [Not Used]

          7.6 INVESTMENTS. Make any Investment in any Person, other than
          Permitted Investments, or permit any Subsidiary to do so.

          7.7 DISTRIBUTIONS. Pay any dividends or make any distribution or
payment or redeem, retire or purchase any capital stock.

          7.8 TRANSACTIONS WITH AFFILIATES. Directly or indirectly enter into or
permit to exist any material transaction with any Affiliate of Borrower except
for transactions that are in the ordinary course of Borrower's business, on
terms no less favorable to Borrower than would be obtained in an arm's length
transaction with a non-affiliated Person.

     7.9 COMPLIANCE. Become an "investment company" under the Investment Company
Act of 1940 or undertake as one of its important activities extending credit to
purchase or carry margin stock, or use the proceeds of any Loan for that
purpose; fail to meet the minimum funding requirements of ERISA, permit a
Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail
to comply with the Federal Fair Labor Standards Act or violate any other law or
regulation, if the violation could reasonably be expected to have a material
adverse effect on Borrower's business or operations or would reasonably be
expected to cause a material adverse change in the business or financial
condition of Borrower, or permit any of its Subsidiaries to do so.

     8. EVENTS OF DEFAULT

          Any one or more of the following events shall constitute an Event of
Default by Borrower under this Agreement:

          8.1 PAYMENT DEFAULT. If Borrower fails to pay within 5 days of the
date when due and payable or when declared due and payable in accordance with
the Loan Documents, any portion of the Obligations.

          8.2 CERTAIN COVENANT DEFAULTS. If Borrower fails to perform any
obligation under SECTIONS 6.8, 6.9, OR 6.10, or violates any of the covenants
contained in SECTION 7 of this Agreement.

          8.3 OTHER COVENANT DEFAULTS. If Borrower fails or neglects to perform,
keep, or observe any other material term, provision, condition, covenant, or
agreement contained in this Agreement, in any of the

                                       15

<PAGE>

other Loan Documents, or in any other present or future loan agreement, lease or
similar agreement between Borrower and Lender (and any related agreement,
including, without limitation, any warrant, security agreement, negative pledge
agreement, control agreement, and landlord consent) and as to any default under
such other term, provision, condition, covenant or agreement that can be cured,
has failed to cure such default within thirty (30) days after the occurrence of
such default.

          8.4 MATERIAL ADVERSE CHANGE. If there occurs a material adverse change
in Borrower's business, or if there is a material impairment of the prospect of
repayment of any portion of the Obligations owing to Lender or a material
impairment of the value or priority of Lender's security interests in the
Collateral.

          8.5 ATTACHMENT. If any material portion of the Collateral is attached,
seized, subjected to a writ or distress warrant, or is levied upon, or comes
into the possession of any trustee, receiver or Person acting in a similar
capacity and such attachment, seizure, writ or distress warrant or levy has not
been removed, discharged or rescinded within ten (10) days, or if Borrower is
enjoined, restrained, or in any way prevented by court order from continuing to
conduct all or any material part of its business affairs, or if a judgment or
other claim becomes a lien or encumbrance upon any material portion of the
Collateral, or if a notice of lien, levy, or assessment is filed of record with
respect to any of the Collateral by the United States Government, or any
department, agency, or instrumentality thereof, or by any state, county,
municipal, or governmental agency, and the same is not paid within ten (10) days
after Borrower receives notice thereof, provided that none of the foregoing
shall constitute an Event of Default where such action or event is stayed or an
adequate bond has been posted pending a good faith contesting by Borrower.

          8.6 OTHER AGREEMENTS. If there is a default by the Borrower in any
agreement to which Borrower is a party with a third party or parties resulting
in a right by such third party or parties, whether or not exercised, to
accelerate the maturity of any Indebtedness in excess of One Hundred Thousand
Dollars ($100,000); or if there is a breach by Borrower of any real property
lease agreement which gives the landlord a right to terminate the lease.

          8.7 JUDGMENTS. If a judgment or judgments for the payment of money in
an amount, individually or in the aggregate, of at least One Hundred Thousand
Dollars ($100,000) shall be rendered against Borrower and shall remain
unsatisfied and unstayed for a period of thirty (30) days.

          8.8 REDEMPTION OR REPURCHASE. Borrower shall, after the date of this
Agreement, redeem or repurchase (a) any shares of any class or series of its
preferred stock or (b) more than Fifty Thousand Dollars ($50,000) in the
aggregate per year of common stock, in each case whether pursuant to a mandatory
redemption or otherwise.

          8.9 MISREPRESENTATIONS. If any material misrepresentation or material
misstatement exists or existed at the time made in any warranty, representation,
statement, or report made to Lender by any accountant or similar agent with
respect to financial information, or by Borrower or any officer, or director of
Borrower with respect to any information.

          8.10 BREACH OF WARRANT. If Borrower shall breach the terms of the
Warrant in any material respect.

          8.11 ENFORCEABILITY. If (a) any Loan Document shall in any material
respect cease to be a legal, valid and binding obligation of Borrower
enforceable in accordance with its terms; provided, however, that the foregoing
shall not be an Event of Default if amending such Loan Document will cure such
default and Borrower promptly takes any actions reasonably requested by Lender
to amend such Loan Document, or (b) Borrower shall assert that any Loan Document
is not, a legal, valid and binding obligation of Borrower enforceable in
accordance with its terms.

          8.12 INVOLUNTARY BANKRUPTCY OR INSOLVENCY. If a proceeding shall have
been instituted in a court having jurisdiction in the premises seeking a decree
or order for relief in respect of Borrower in an involuntary

                                       16

<PAGE>

case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or for the appointment of a receiver, liquidator, assignee,
custodian, trustee (or similar official) of Borrower or for any substantial part
of its property, or for the winding-up or liquidation of its affairs, and such
proceeding shall remain undismissed or unstayed and in effect for a period of
forty-five (45) consecutive days or such court shall enter a decree or order
granting the relief sought in such proceeding.

          8.13 VOLUNTARY BANKRUPTCY OR INSOLVENCY. If Borrower shall commence a
voluntary case under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, shall consent to the entry of an order for relief in
an involuntary case under any such law, or shall consent to the appointment of
or taking possession by a receiver, liquidator, assignee, trustee, custodian (or
other similar official) of Borrower or for any substantial part of its property,
or shall make a general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due, or shall take any corporate
action in furtherance of any of the foregoing,

     9. LENDER'S RIGHTS AND REMEDIES

          9.1 RIGHTS AND REMEDIES. Upon the occurrence and continuance of any
Default or Event of Default, Lender shall have no further obligation to advance
money or extend credit to or for the benefit of Borrower. In addition, upon the
occurrence and during the continuance of an Event Of Default, Lender shall have
the rights, options, duties and remedies of a secured party as permitted by law
and, in addition to and without limitation of the foregoing, Lender may, at its
election, without notice of election and without demand, do any one or more of
the following in accordance with applicable law, all of which are authorized by
Borrower:

               (A) Declare all Obligations, whether evidenced by this Agreement,
by any of the other Loan Documents, or otherwise, including the Stipulated Loan
Value of the Loan Amount of each Loan, immediately due and payable (provided
that upon the occurrence of an Event of Default described in SECTION 8.12 or
8.13 all Obligations shall become immediately due and payable without any action
by Lender);

               (B) Without notice to or demand upon Borrower, make such payments
and do such acts as Lender considers necessary or reasonable to protect its
security interest in the Collateral. Borrower agrees to assemble the Collateral
if Lender so requires, and to make the Collateral available to Lender as Lender
may designate at a location reasonably convenient to Lender and Borrower.
Borrower authorizes Lender to peaceably enter the premises where the Collateral
is located, to peaceably take and maintain possession of the Collateral, or any
part of it, and to pay, purchase, contest, or compromise any encumbrance,
charge, or lien which in Lender's determination appears to be prior or superior
to its security interest and to pay all expenses reasonably incurred in
connection therewith. With respect to any of Borrower's owned premises, Borrower
hereby grants Lender a license to enter into possession of such premises and to
occupy the same, without charge, for up to one hundred twenty (120) days in
order to exercise any of Lender's rights or remedies provided herein, at law, in
equity, or otherwise;

               (C) Without prior notice to Borrower, set off and apply to the
Obligations any and all indebtedness at any time owing to or for the credit or
the account of Borrower;

               (D) Ship, reclaim, recover, store, finish, maintain, repair,
prepare for sale, advertise for sale, and sell (in the manner provided for
herein) the Collateral, Lender is hereby granted a license or other right,
solely pursuant to the provisions of this SECTION 9.1, to use, without charge,
Borrower's labels, patents (if inventory is financed), copyrights (if inventory
is financed), rights of use of any name, trade secrets (if any inventory is
financed and provided Lender has executed a confidentiality agreement reasonably
requested by Borrower), trade names, trademarks, service marks, and advertising
matter, or any Property of a similar nature, as it pertains to the Collateral,
in completing production of, advertising for sale, and selling any Collateral
and, in connection with Lender's exercise of its rights under this SECTION 9.1,
Borrower's rights under all licenses and all franchise agreements shall inure to
Lender's benefit;

               (E) Sell the Collateral at either a public or private sale, or
both, by way of one or more contracts or transactions, for cash or on terms, in
such manner and at such places (including Borrower's premises) as Lender
determines are commercially reasonable;

                                       17

<PAGE>

               (F) Lender may credit bid and purchase at any public sale; and

               (G) Any deficiency that exists after disposition of the
Collateral as provided above will be paid immediately by Borrower and any
surplus will be paid immediately to Borrower.

          9.2 WAIVER BY BORROWER. Upon the occurrence and continuance of an
Event of Default, to the extent permitted by law, Borrower covenants that it
will not at any time insist upon or plead, or in any manner whatever claim or
take any benefit or advantage of, any stay or extension of law now or at any
time hereafter in force, nor claim, take nor insist upon any benefit or
advantage of or from any law now or hereafter in force providing for the
valuation or appraisement of the Collateral or any part thereof prior to any
sale or sales thereof to be made pursuant to any provision herein contained, or
to the decree, judgment or order of any court of competent jurisdiction; nor,
after such sale or sales, claim, or exercise any right under any statute now or
hereafter made or enacted by any state or otherwise to redeem the Collateral so
sold or any part thereof, and, to the full extent legally permitted, except as
to rights expressly provided herein, hereby expressly waives for itself and on
behalf of each and every Person, except decree or judgment creditors of Borrower
acquiring any interest in or title to the Collateral or any part thereof
subsequent to the date of this Agreement, all benefit and advantage of any such
law or laws, and covenants that it will not invoke or utilize any such law or
laws or otherwise hinder, delay or impede the execution of any power herein
granted and delegated to Lender, but will suffer and permit the execution of
every such power as though no such power, law or laws had been made or enacted

          9.3 EFFECT OF SALE. Any sale, whether under any power of sale hereby
given or by virtue of judicial proceedings, shall operate to divest all right,
title, interest, claim and demand whatsoever, either at law or in equity, of
Borrower in and to the Collateral sold, and shall be a perpetual bar, both at
law and in equity, against Borrower, its successors and assigns, and against any
and all Persons claiming the Collateral sold or any part thereof under, by or
through Borrower, its successors or assigns.

          9.4 POWER OF ATTORNEY IN RESPECT OF THE COLLATERAL. Borrower does
hereby irrevocably appoint Lender (which appointment is coupled with an
interest) on the occurrence and continuance of an Event of Default, the true and
lawful attorney in fact of Borrower with full power of substitution, for it and
in its name: (a) to ask, demand, collect, receive, receipt for, sue for,
compound and give acquittance for any and all rents, issues, profits, avails,
distributions, income, payment draws and other sums in which a security interest
is granted under Section 4 with full power to settle, adjust or compromise any
claim thereunder as fully as if Lender were Borrower itself, (b) to receive
payment of and to endorse the name of Borrower to any items of Collateral
(including checks, drafts and other orders for the payment of money) that come
into such Lender's possession or under such Lender's control, (c) to make all
demands, consents and waivers, or take any other action with respect to, the
Collateral, (d) in Lender's discretion to file any claim or take any other
action or proceedings, either in its own name or in the name of Borrower or
otherwise, which Lender may reasonably deem necessary or appropriate to protect
and preserve the right, title and interest of Lender in and to the Collateral,
or (e) to otherwise act with respect thereto as though Lender were the outright
owner of the Collateral.

          9.5 LENDER'S EXPENSES. If Borrower fails to pay any amounts or furnish
any required proof of payment due to third persons or entities, as required
under the terms of this Agreement, then Lender may do any or all of the
following; (a) make payment of the same or any part thereof; (b) set up such
reserves in Borrower's loan account as Lender deems necessary to protect Lender
from the exposure created by such failure; or (c) obtain and maintain insurance
policies of the type discussed in SECTION 6.9 of this Agreement, and take any
action with respect to such policies as Lender deems prudent. Any amounts paid
or deposited by Lender shall constitute Lender's Expenses, shall be immediately
due and payable, and shall bear interest at the then applicable rate hereinabove
provided, and shall be secured by the Collateral. Any payments made by Lender
shall not constitute an agreement by Lender to make similar payments in the
future or a waiver by Lender of any Event of Default under this Agreement.

          9.6 REMEDIES CUMULATIVE. Lender's rights and remedies under this
Agreement, the Loan Documents, and all other agreements shall be cumulative.
Lender shall have all other rights and remedies not inconsistent herewith as
provided under the Code, by law, or in equity. No exercise by Lender of one
right or remedy

                                       18

<PAGE>

shall be deemed an election, and no waiver by Lender of any Event of Default on
Borrower's part shall be deemed a continuing waiver. No delay by Lender shall
constitute a waiver, election, or acquiescence by it.

          9.7 APPLICATION OF COLLATERAL PROCEEDS. The proceeds and/or avails of
the Collateral, or any part thereof, and the proceeds and the avails of any
remedy hereunder (as well as any other amounts of any kind held by Lender at the
time of or received by Lender after the occurrence of an Event of Default
hereunder) shall be paid to and applied as follows:

               (A) First, to the payment of out-of-pocket costs and expenses,
including all amounts expended to preserve the value of the Collateral, of
foreclosure or suit, if any, and of such sale and the exercise of any other
rights or remedies, and of all proper fees, expenses, liability and advances,
including reasonable legal expenses and attorneys' fees, incurred or made
hereunder by Lender;

               (B) Second, to the payment to Lender of the amount then owing or
unpaid on the Loans for Scheduled Payments, the Stipulated Loan Value of the
Loan Amount, and all other Obligations with respect to all Loans, and in case
such proceeds shall be insufficient to pay in full the whole amount so due,
owing or unpaid upon the Loans, then to the unpaid interest thereon, then to
unpaid principal thereof, then to the Stipulated Loan Value of the Loan Amount
with respect to the Loan, and then to the payment of other amounts then payable
to Lender under any of the Loan Documents; and

               (C) Third, to the payment of the surplus, if any, to Borrower,
its successors and assigns, or to whomsoever may be lawfully entitled to receive
the same.

          9.8 REINSTATEMENT OF RIGHTS. If Lender shall have proceeded to enforce
any right under this Agreement or any other Loan Document by foreclosure, sale,
entry or otherwise, and such proceedings shall have been discontinued or
abandoned for any reason or shall have been determined adversely, then and in
every such case (unless otherwise ordered by a court of competent jurisdiction),
Lender shall be restored to its former position and rights hereunder with
respect to the Collateral subject to the security interest created under this
Agreement

     10. WAIVERS; INDEMNIFICATION

          10.1 DEMAND; PROTEST. Borrower waives demand, protest, notice of
protest, notice of default or dishonor, notice of payment and nonpayment, notice
of any default, nonpayment at maturity, release, compromise, settlement,
extension, or renewal of accounts, documents, instruments, chattel paper, and
guarantees at any time held by Lender on which Borrower may in any way be
liable.

          10.2 LEADER'S LIABILITY FOR COLLATERAL. So long as Lender complies
with its obligations, if any, under Section 9207 of the Code and other
applicable law, Lender shall not in any way or manner be liable or responsible
for: (a) the safekeeping of the Collateral; (b) any loss or damage thereto
occurring or arising in any manner or fashion from any cause; (c) any diminution
in the value thereof, or (d) any act or default of any carrier, warehouseman,
bailee, forwarding agency, or other Person whomsoever. All risk of loss, damage
or destruction of the Collateral shall be borne by Borrower.

          10.3 INDEMNIFICATION. Whether or not the transactions contemplated
hereby shall be consummated:

               (A) GENERAL INDEMNITY. Borrower shall pay, indemnify, and hold
Lender and each of its officers, directors, employees, counsel, partners, agents
and attorneys-in-fact (each, an "Indemnified Person") harmless from and against
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, charges, expenses or disbursements (including Lender's
Expenses and reasonable attorney's fees) of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Agreement and any other Loan Documents, or the transactions contemplated
hereby and thereby, and with respect to any investigation, litigation or
proceeding (including any case, action or proceeding before any court or other
Governmental Authority

                                       19

<PAGE>

relating to bankruptcy, reorganization, insolvency, liquidation, dissolution or
relief of debtors or any appellate proceeding) related to this Agreement or the
Loans or the use of the proceeds thereof, whether or not any Indemnified Person
is a party thereto (all the foregoing, collectively, the "Indemnified
Liabilities"); provided, that Borrower shall have no obligation hereunder to any
Indemnified Person with respect to Indemnified Liabilities arising from the
gross negligence or willful misconduct of such Indemnified Person.

               (B) SURVIVAL; DEFENSE. The obligations in this SECTION 10.3 shall
survive payment of all other Obligations. At the election of any Indemnified
Person, Borrower shall defend such Indemnified Person using legal counsel
satisfactory to such Indemnified Person in such Person's sole discretion, at the
sole cost and expense of Borrower. All amounts owing under this SECTION 10.3
shall be paid within thirty (30) days after written demand.

     11. NOTICES

          Unless otherwise provided in this Agreement, all notices or demands by
any party relating to this Agreement or any other agreement entered into in
connection herewith shall be in writing and (except for financial statements and
other informational documents which may be sent by first-class mail, postage
prepaid) shall be personally delivered or sent by certified mail, postage
prepaid, return receipt requested, or by prepaid facsimile to Borrower or to
Lender, as the case may be, at their respective addresses set forth below:

     If to Borrower: SoundBite Communications, Inc.
                     Three Burlington Woods Drive
                     Burlington, Massachusetts 01803
                     Attention: Chief Financial Officer
                     FAX:(781)273-0115

     If to Lender:   Lighthouse Capital Partners IV, L.P.
                     500 Drake's Landing Road
                     Greenbrae, California 94904-3011
                     Attention: Contract Administrator
                     FAX:(415)925-3387

     The parties hereto may change the address at which they are to receive
notices hereunder, by notice in writing in the foregoing manner given to the
other,

     12. GENERAL PROVISIONS

          12.1 SUCCESSORS AND ASSIGNS. This Agreement shall bind and inure to
the benefit of the respective successors and permitted assigns of each of the
parties; provided, however, that neither this Agreement nor any rights hereunder
may be assigned by Borrower without Lender's prior written consent, which
consent may be granted or withheld in Lender's sole discretion. Lender shall
have the right without the consent of or notice to Borrower to sell, transfer,
negotiate, or grant participations in all or any part of, or any interest in
such Lender's rights and benefits hereunder.

          12.2 TIME OF ESSENCE. Time is of the essence for the performance of
all obligations set forth in this Agreement

          12.3 SEVERABILITY OF PROVISIONS. Each provision of this Agreement
shall be severable from every other provision of this Agreement for the purpose
of determining the legal enforceability of any specific provision.

          12.4 ENTIRE AGREEMENT; CONSTRUCTION; AMENDMENTS AND WAIVERS.

               (A) This Agreement and each of the other Loan Documents dated as
of the date hereof, taken together, constitute and contain the entire agreement
between Borrower and Lender and supersede any and all

                                       20

<PAGE>

prior agreements, negotiations, correspondence, understandings and
communications between the parties, whether written or oral, respecting the
subject matter hereof.

               (B) This Agreement is the result of negotiations between and has
been reviewed by each of Borrower and Lender executing this Agreement as of the
date hereof and their respective counsel; accordingly, this Agreement shall be
deemed to be the product of the parties hereto, and no ambiguity shall be
construed in favor of or against Borrower or Lender. Borrower and Lender agree
that they intend the literal words of this Agreement and the other Loan
Documents and that no parol evidence shall be necessary or appropriate to
establish Borrower's or Lender's actual intentions.

               (C) Any and all amendments, modifications, discharges or waivers
of, or consents to any departures from any provision of this Agreement or of any
of the other Loan Documents shall not be effective without the written consent
of Lender. Any waiver or consent with respect to any provision of the Loan
Documents shall be effective only in the specific instance and for the specific
purpose for which it was given. No notice to or demand on Borrower in any case
shall entitle Borrower to any other or further notice or demand in similar or
other circumstances. Any amendment, modification, waiver or consent effected in
accordance with this SECTION 12.4 shall be binding upon Lender and on Borrower.

          12.5 RELIANCE BY LENDER. All covenants, agreements, representations
and warranties made herein by Borrower shall, notwithstanding any investigation
by Lender, be deemed to be material to and to have been relied upon by Lender.

          12.6 NO SET-OFFS BY BORROWER. All sums payable by Borrower pursuant to
this Agreement or any of the other Loan Documents shall be payable without
notice or demand and shall be payable in United States Dollars without set-off
or reduction of any manner whatsoever.

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

          12.8 SURVIVAL. All covenants, representations and warranties made in
this Agreement shall continue in full force and effect so long as any
Obligations remain outstanding. The obligations of Borrower to indemnify Lender
with respect to the expenses, damages, losses, costs and liabilities described
in SECTION 10.3 shall survive until all applicable statute of limitations
periods with respect to actions that may be brought against Lender have run.

     13. NO ORIGINAL ISSUE DISCOUNT. Borrower and Lender hereby acknowledge and
agree that the warrant (the "Warrant") to purchase stock transferred to Lender
under the Warrant to purchase stock is part of an investment unit within the
meaning of Section 1273(c)(2) of the Internal Revenue Code which includes the
Loans. Borrower and Lender further agree as between Borrower and Lender, that
the fair market value of the Warrant is equal to US$100 and that, pursuant to
Treas. Reg. Section l.1273-2(h), US$100 of the issue price of the investment
unit will be allocable to the Warrant and the balance shall be allocable to the
Loans. Borrower and Lender agree to prepare their federal income tax returns in
a manner consistent with the foregoing agreement and, pursuant to Treas. Reg.
Section 1.1273, the original issue discount on the Loans shall be considered to
be zero.

     14. RELATIONSHIP OF PARTIES. Borrower and Lender acknowledge, understand
and agree that the relationship between the Borrower, on the one hand, and
Lender, on the other, is, and at all times shall remain solely that of a
borrower and lender. Lender shall not under any circumstances be construed to be
a partner or joint venturer of Borrower or any of its Affiliates; nor shall the
Lender under any circumstances be deemed to be in a relationship of confidence
or trust or a fiduciary relationship with Borrower or any of its Affiliates, or
to owe any fiduciary duty to Borrower or any of its Affiliates. Lender does not
undertake or assume any responsibility or duty to Borrower or any of its
Affiliates to select, review, inspect, supervise, pass judgment upon or
otherwise inform the Borrower or any of its Affiliates of any matter in
connection with its or their Property, any Collateral held by Lender or the
operations of

                                       21

<PAGE>

Borrower or any of its Affiliates. Borrower and each of its Affiliates shall
rely entirely on their own judgment with respect to such matters, and any
review, inspection, supervision, exercise of judgment or supply of information
undertaken or assumed by Lender in connection with such matters is solely for
the protection of Lender and neither Borrower nor any Affiliate is entitled to
rely thereon.

     15. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
CALIFORNIA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF BORROWER
AND LENDER HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL
COURTS LOCATED IN THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA. BORROWER AND
LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF
THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.

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

BORROWER:                               LENDER:

SOUNDBITE COMMUNICATIONS, INC.          LIGHTHOUSE CAPITAL PARTNERS IV, L.P.

By: /s/ John McDonough                  By: LIGHTHOUSE MANAGEMENT PARTNERS IV,
    ---------------------------------       L.L.C., its general partner
Name: John McDonough
Title: CEO
                                        By: /s/ Dennis D. Ryan
                                            ------------------------------------
                                        Name: DENNIS D. RYAN
                                        Title: COO

Exhibit A - Collateral
Exhibit B - Equity Terms
Exhibit C - Landlord Consent
Exhibit D - Loan Agreement Supplement
Exhibit E - Ancillary Documents

                                       22

<PAGE>

                                    EXHIBIT A

DEBTOR/BORROWER: SOUNDBITE COMMUNICATIONS, INC.

SECURED PARTY/LENDER: LIGHTHOUSE CAPITAL PARTNERS IV, L.P.

                                   COLLATERAL

     The Collateral shall consist of all right, title and interest of Debtor in
and to all the following:

   All right, title, interest, claims and demands of Debtor in and to each and
    every item of goods, equipment, software, inventory, fixtures or personal
  property that is financed pursuant to any Loan and Security Agreement by and
 between Debtor and Secured Party, including without limitation, that described
  in ANNEX A attached hereto whether now owned or hereafter acquired, wherever
    located, together with all substitutions, renewals or replacements of and
   additions, improvements, accessions and accumulations to any and all of the
   foregoing, together with all the rents, issues, income, profits and avails
therefrom and all of the products and proceeds thereof resulting from the sale,
   lease, license or other disposition thereof, including without limitation,
insurance, proceeds of insurance, proceeds of proceeds, cash proceeds, non-cash
 proceeds, condemnation, requisition or similar payments, and all proceeds from
  sales, renewals, releases or other dispositions thereof. Undefined terms used
herein shall have the meanings given to them in the UCC, in effect from time to
                                      time.

                                        1

<PAGE>

                                     ANNEX A
                                       TO
                                    EXHIBIT A

     The following represent further specific descriptions of the financed
property:

                                        2

<PAGE>

                                    EXHIBIT B

                                  EQUITY TERMS

                                   See Warrant

                                        1

<PAGE>

                                    EXHIBIT C

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
Lighthouse Capital Partners IV, L.P.
500 Drake's Landing Road
Greenbrae, CA 94904-3011
Attn.: Contract Administration

                     CONSENT TO REMOVAL OF PERSONAL PROPERTY

KNOW ALL PERSONS BY THESE PRESENTS:

     (a) The undersigned has an interest as owner and landlord in that certain
real property (the "Real Property") in the County of ____________, Commonwealth
of Massachusetts, described as: SEE EXHIBIT 1 ATTACHED HERETO FOR FULL LEGAL
DESCRIPTION, and commonly known as Three Burlington Woods Office Park,
Burlington, Massachusetts 01803 (Parcel No.______).

     (b) SOUNDBITE COMMUNICATIONS, INC., a Delaware corporation ("Borrower"),
has entered into or will enter into a Loan and Security Agreement No. 340040201
with LIGHTHOUSE CAPITAL PARTNERS IV, L.P. ("Lender") (as amended and
supplemented from time to time, the "Agreement").

     (c) Lender, as a condition to entering into the Agreement, requires that
the undersigned consent to the removal by Lender of the equipment and other
assets in which Lender has a security interest pursuant to the Agreement
(hereinafter the "Equipment") from the Real Property, no matter how it is
affixed thereto, and to the other matters set forth below.

NOW, THEREFORE, for good and sufficient consideration, receipt of which is
hereby acknowledged, the undersigned consents to the placing of the Equipment on
the Real Property, and agrees with Lender as follows:

     1. The undersigned waives and releases each and every right which
undersigned now has, under the laws of the Commonwealth of Massachusetts or by
virtue of the lease for the Real Property now in effect, to levy or distrain
upon for rent, in arrears, in advance or both, or to claim or assert title to
the Equipment that is already on said Real Property, or may hereafter be
delivered or installed thereon.

     2. The Equipment shall be considered to be personal property and shall not
be considered part of the Real Property regardless of whether or by what means
it is or may become attached or affixed to the Real Property.

     3. The undersigned will permit Lender, or its agent or representative, to
enter upon the Real Property for the purpose of exercising any right it may have
under the terms of the Agreement or otherwise, including, without limitation,
the right to remove the Equipment; provided, however, that if Lender, in
removing the Equipment damages any improvements of the undersigned on the Real
Property, Lender will, at its expense, cause same to be repaired, normal wear
and tear excepted. The right of Lender to enter the Real Properly shall not
terminate until thirty (30) days after Lender receives written notice from the
undersigned of the expiration or termination of the Lease; provided such 30 day
period shall be extended by the number of days Lender is prohibited by law from
removing the Equipment.

     4. This agreement shall be binding upon the heirs, successors and assigns
of the undersigned and shall inure to the benefit of Lender and its successors
and assigns.

                                        1

<PAGE>

IN WITNESS WHEREOF, the undersigned has executed this instrument this ____ day
of _________, 2002.

LANDLORD                                Notarial Acknowledgment required.

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

                  ATTACH LEGAL DESCRIPTION OF THE REAL PROPERTY

                                        2

<PAGE>

                                    EXHIBIT D

                        LOAN AGREEMENT SUPPLEMENT NO. 01

     LOAN AGREEMENT SUPPLEMENT NO. 01, dated ______________ ("Supplement"), to
the Loan and Security Agreement No. 340040201 dated as of August 14, 2002 (the
"Agreement") by and between SOUNDBITE COMMUNICATIONS, Inc., a Delaware
corporation (the "Borrower"), and LIGHTHOUSE CAPITAL PARTNERS IV, L.P. (the
"Lender").

     Capitalized terms used herein but not otherwise defined herein are used
with the respective meanings given to such terms in the Agreement.

     The amount being advanced under this Supplement is $___________.

     Attached as ANNEX A hereto is the Stipulated Loan Value Table which sets
forth the schedule of Stipulated Loan Values with respect to the Loan.

     Attached as ANNEX B hereto is the Summary of Loan Agreement Supplement.

     Attached as ANNEX C hereto is a list of equipment added to the Collateral
financed under the Agreement.

     Borrower hereby certifies that (a) the foregoing information is true and
correct and authorizes Lender to endorse in its books and records, the Basic
Rate applicable to the Loan contemplated in this Loan Agreement Supplement and
the principal amount set forth in the Summary of Loan Agreement Supplement; (b)
the representations and warranties made by Borrower in SECTION 5 of the Loan
Agreement and in the other Loan Documents are true and correct on the date
hereof and will be true and correct on the Funding Date; (c) Borrower has met or
will by the Funding Date meet all conditions set forth in SECTION 3 of the Loan
Agreement; (d) Borrower is now, and on the Funding Date will be, in compliance
with the covenants and the requirements contained in SECTIONS 6 and 7 of the
Loan Agreement; and (e) no Default or Event of Default has occurred and is
continuing under the Loan Agreement.

     This Supplement is being delivered in the State of California.

     This Supplement may be executed by Borrower and Lender in separate
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute but one and the same
instrument.

     IN WITNESS WHEREOF, Borrower and Lender have caused this Supplement to be
duly executed and delivered as of this day and year first above written.

BORROWER;                               LENDER:

SOUNDBITE COMMUNICATIONS, INC.          LIGHTHOUSE CAPITAL PARTNERS IV, L.P.

                                        By: LIGHTHOUSE MANAGEMENT
By:                                         PARTNERS IV, L.L.C., its general
    ---------------------------------       partner
Name:
      -------------------------------
Title:                                  By:
       ------------------------------       ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

Annex A - Stipulated Loan Value Table
Annex B - Summary of Loan Agreement Supplement
Annex C - List of Collateral

<PAGE>

                                     ANNEX A

                           STIPULATED LOAN VALUE TABLE
                                       TO
                        LOAN AGREEMENT SUPPLEMENT NO. 01
       To LOAN AND SECURITY AGREEMENT NO. 340040201, dated August 14, 2002
 ("Agreement"), by and between LIGHTHOUSE CAPITAL PARTNERS IV, L.P., a Delaware
 limited partnership ("Lender"), and SOUNDBITE COMMUNICATIONS, INC., a Delaware
                            corporation ("Borrower").

(All capitalized terms not otherwise defined herein shall have the meanings
given to such terms in the Agreement).

     STIPULATED LOAN VALUE. In the case of an Event of Loss, the Stipulated Loan
Value for each item of Equipment is the Stated Cost for the item(s) multiplied
by Stipulated Loan Value Percentage for the Payment Number following the month
of the Event of Loss.

<TABLE>
<CAPTION>
                     Stipulated
                        Loan
Payment                Value
Number              Percentage*
-------             -----------
<S>                 <C>
1                     111.88%
2                     109.78%
3                     106.95%
4                     104.54%
5                     102.11%
6                      99.65%
7                      97.18%
8                      94.68%
9                      92.16%
10                    89.627%
11                     87.01%
12                     84.46%
13                     81.84%
14                     79.20%
15                     76.53%
16                     73.84%
17                     71.12%
18                     68.38%
</TABLE>

<TABLE>
<CAPTION>
                     Stipulated
                        Loan
Payment                Value
Number              Percentage*
-------             -----------
<S>                 <C>
19                     65.61%
20                     62.81%
21                     59.98%
22                     57.13%
23                     54.25%
24                     51.34%
25                     48.41%
26                     45.45%
27                     42.67%
28                     39.46%
29                     36.44%
30                     33.39%
31                     30.31%
32                     27.21%
33                     24.08%
34                     20.93%
35                     17.75%
36 and thereafter      15.00%
</TABLE>

*    Each Stipulated Loan Value amount assumes payment of all Scheduled Payments
     due on or before the indicated Payment Date.

Borrower: ___________________________   Lender: ________________________________

<PAGE>

                                     ANNEX B

                 SUMMARY OF LOAN AGREEMENT SUPPLEMENT NO. 01, to
 LOAN AND SECURITY AGREEMENT NO. 340040201 dated August 14, 2002 ("Agreement"),
       by and between LIGHTHOUSE CAPITAL PARTNERS IV, L.P. ("Lender") and
      SOUNDBITE COMMUNICATIONS, INC., a Delaware corporation ("Borrower").

(All capitalized terms not otherwise defined herein shall have the meanings
given to such terms in the Agreement.)

Loan Funding Date: __________, 20__

Original Loan Amount: $__________

Basic Rate: _____%

Interim Payment: $__________

Loan Factor: _____%

Scheduled Payment Amount*: $__________

Final Payment*: An additional amount equal to the Final Payment Percentage
                multiplied by the original Loan Amount then in effect, shall be
                paid on the Maturity Date with respect to such Loan.

                                        LENDER:

                                        LIGHTHOUSE CAPITAL PARTNERS IV, L.P.

                                        By: LIGHTHOUSE MANAGEMENT PARTNERS IV,
                                            L.L.C., its general partner

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

<PAGE>

                                    EXHIBIT E

                               ANCILLARY DOCUMENTS

                              Officer's Certificate

                             Insurance Request form

<PAGE>

                         SOUNDBITE COMMUNICATIONS, INC.

                              OFFICER'S CERTIFICATE

     The undersigned, _________________, hereby certifies that:

     1. He/She is the duly elected and acting __________ of SOUNDBITE
COMMUNICATIONS, INC., a Delaware corporation (the "Company").

     2. That on the date hereof, each person listed below holds the office in
the Company indicated opposite his or her name and that the signature appearing
thereon is the genuine signature of each such person:

<TABLE>
<CAPTION>
NAME                         OFFICE                    SIGNATURE
----                         ------                    ---------
<S>                          <C>                       <C>

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

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

--------------------------   -----------------------   -------------------------
</TABLE>

     3. Attached hereto as EXHIBIT A is a true and correct copy of the
Certificate of Incorporation of the Company, as amended, as in effect as of the
date hereof.

     4. Attached hereto as EXHIBIT B is a true and correct copy of the Bylaws of
the Company, as amended, as in effect as of the date hereof.

     5. Attached hereto as EXHIBIT C is a copy of the resolutions of the Board
of Directors of the Company authorizing and approving the Company's execution,
delivery and performance of a loan facility with Lighthouse Capital Partners IV,
L.P.

     IN WITNESS WHEREOF, the undersigned has executed this Officer's Certificate
on _____________________.

                                        SOUNDBITE COMMUNICATIONS, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

     I, the President of the Company, do hereby certify that ______________ is
the duly qualified, elected and acting ___________________ of the Company and
that the above signature is his or her genuine signature.

     IN WITNESS WHEREOF, the undersigned has executed and delivered this
Officer's Certificate on ________________.

                                        SOUNDBITE COMMUNICATIONS, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

<PAGE>

                              EVIDENCE OF INSURANCE

RE: Loan and Security Agreement No. 340040201 ("Agreement")

Please submit the attached Certificate of Insurance to your Insurance Broker as
soon as possible.

Please note that the Certificate of Insurance is required prior to funding.

<PAGE>

                                        Broker: Please prepare a Certificate of
                                        Insurance as described and send to
To: ________________________________    Certificate Holder via fax and regular
From: SOUNDBITE COMMUNICATIONS, INC.    mail below.

CERTIFICATE OF INSURANCE                                           DATE(MM/DD/YY

PRODUCER                                THIS CERTIFICATE IS ISSUED AS A MATTER
                                        OF INFORMATION ONLY AND CONFERS NO
                                        RIGHTS UPON THE CERTIFICATE HOLDER. THIS
                                        CERTIFICATE DOES NOT AMEND, EXTEND OR
                                        ALTER THE COVERAGE AFFORDED BY THE
                                        POLICIES BELOW.

                                               INSURERS AFFORDING COVERAGE

INSURED                                 INSURER A: _____________________________
                                        INSURER B: _____________________________
SoundBite Communications, Inc.          INSURER C: _____________________________

     COVERAGES

THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED
ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR
CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES
DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

<TABLE>
<CAPTION>
 IN
 SR                                    EFFECTIVE   EXPIRATION
 LT          TYPE OF          POLICY    DATE(MM       DATE
 R          INSURANCE         NUMBER    /DD/YY)     (MM/DD/YY                 LIMITS
---   ---------------------   ------   ---------   ----------   ---------------------------------
<S>   <C>                     <C>      <C>         <C>          <C>                    <C>
 A    X GENERAL                                                 EACH OCCURRENCE        $2,000,000
      LIABILITY                                                 FIRE DAMAGE (Any one
      COMMERCIAL                                                fire)                  $ included
      GENERAL                                                   MED EXP (Any one
      LIABLITY CLAIMS                                           Person)                $   10,000
      MADE X OCCUR                                              PERSONAL & ADV
                                                                INJURY                 $1,000,000
      _____________________                                     GENERAL AGGREGATE      $2,000,000
                                                                PRODUCTS-COM/OP AGG    $2,000,000
      _____________________
      ________________

      GEN'L AGGREGATE
      LIMIT APPLIES PER
      POLICY PROJECT LOC

      AUTOMOBILE                                                COMBINED SINGLE
      LIABILITY ANY                                             LIMIT
      AUTO                                                      (Ea accident)          $ ________
</TABLE>

<PAGE>

<TABLE>
<S>   <C>                     <C>      <C>         <C>          <C>                    <C>
      ALL OWNED                                                 BODILY INJURY
      AUTOS                                                     (Per person)           $ ________
      SCHEDULED                                                 BODILY INJURY
      AUTOS HIRED                                               (Per accident)         $ ________
      AUTOS                                                     PROPERTY DAMAGE (Per
      NON-OWNED AUTOS                                           accident               $ ________
                                                                OTHER THAN
      _____________________                                     EA OCC                 $ ________
      ________________                                          AUTO ONLY AGG          $ ________

A     EXCESS LIABILITY                                          EACH OCCURRENCE
         OCCUR                                                  AGGREGATE
      CLAIMS MADE                                                                      $ ________
         DEDUCTIBLE                                                                    $ ________
         RETENTION $ ________                                                          $ ________

A     OTHER                                                     Limit: 1,500,000       'All Risk"
      Business Personal                                                                of Direct
      Property                                                                         Physical
                                                                                       Loss or
                                                                                       Damage
                                                                                       (Subject
                                                                                       to Policy
</TABLE>

DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY
ENDORSEMENT/SPECIAL PROVISIONS

CERTIFICATE HOLDER

Lighthouse Capital Partners IV, L.P.    SHOULD ANY OF THE ABOVE DESCRIBED
500 Drake's Landing Road                POLICIES BE CANCELLED BEFORE THE
Greenbrae, CA. 94904-3011               EXPIRATION DATE THEREOF, THE ISSUING
Attn: Contract Administration           INSURER WILL ENDEAVOR TO MAIL 30 DAYS
Fax: 415-925-3387 Phone:415-464-5900    WRITTEN NOTICE TO THE CERTIFICATE HOLDER
                                        NAMED TO THE LEFT, BUT FAILURE TO DO SO
                                        SHALL IMPOSE NO OBLIGATION OR LIABILITY
                                        OF ANY KIND UPON THE INSURER, ITS AGENTS
                                        OR REPRESENTATIVES.

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