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                                                                   EXHIBIT 10.26


Comerica Bank-California                              75 East Trimble Road
                                                      San Jose, California 95131
                                                      (408) 556 5000


                    MODIFICATION TO LOAN & SECURITY AGREEMENT

     This Second Modification to Revolving Loan & Security Agreement (this
Modification") is entered into by and between Versant Object Technology
Corporation ("Borrower") and Comerica Bank-California ("Bank") as of this 11th
day of August, 1998 at San Jose, California.

                                    RECITALS

     A.   Bank and Borrower have previously entered into or are concurrently
herewith entering into a Revolving Loan & Security Agreement (Accounts &
Inventory) (the "Agreement") dated May 15, 1997.

     B.   Borrower has requested, and Bank has agreed, to modify the Agreement
as set forth below.

                                    AGREEMENT

     For good and valuable consideration, the parties agree as set forth below:

     Incorporation by Reference The Agreement as modified hereby and the
Recitals are incorporated herein by this reference.


                                    
          Section 1.12
                               (c)        Accounts with respect to which the
                                          account debtor is not a resident of
                                          the United States, allowing 80% and up
                                          to $2,000,000.00 advance against
                                          Foreign Accounts Receivable include
                                          FCIA insurance, subject to new equity
                                          raised.

          Section 6.17b                   Tangible Effective Net Worth in
                                          an amount not less than $7,000,000.00,
                                          to increase by 50% of quarterly net
                                          profit after tax and 100% of any
                                          equity and subordinated debt raised.

          Section 6.17d                   a quick ratio of cash plus securities
                                          plus Receivables to Current 
                                          Liabilities of greater than 1.30:1.00.

          Section 6.17e                   a ratio of Total Liabilities
                                          (less debt subordinated to Bank) to
                                          Tangible Effective Net Worth of less
                                          than 1.30:1.00.

   2


                                    


          Section 6.17f                   a ratio of Cash Flow to Fixed Charges
                                          is suspended until March 31, 1999.

          Section 6.17m                   Operating Profit of greater than
                                          ($2,000,000.00) for quarter ending
                                          September 30, 1998; greater than
                                          ($500,000.00) for quarter ending
                                          December 31, 1998, including
                                          write-offs for Soft Mountain
                                          acquisition up to $1,500,000.00.

          Section 6.17n                   Minimum $5,000,000.00 new Equity to be
                                          raised by September 15, 1998



     Legal Effect. Except as specifically set forth in this Modification, all of
the terms and conditions of the Agreement remain in full force and effect.

     Integration This is an integrated Modification and supersedes all prior
negotiations and agreements regarding the subject matter hereof. All amendments
hereto must be in writing and signed by the parties.

     IN WITNESS WHEREOF, the parties have agreed as of the date first set forth
above.


                                                  
BORROWER:

VERSANT OBJECT TECHNOLOGY CORPORATION                COMERICA BANK-CALIFORNIA

BY.                                                  BY. 
   ---------------------------------                     ---------------------------------           

TITLE:  CFO                                          TITLE:  ALAN JEPSEN, VICE PRESIDENT