<PAGE>   1
                                                                    Exhibit 10.7


                           LOAN AND SECURITY AGREEMENT

      This LOAN AND SECURITY AGREEMENT is entered into as of February 20, 1998,
by and between SILICON VALLEY BANK, a California-chartered bank, with its
principal place of business at 3003 Tasman Drive, Santa Clara, California 95054
and with a loan production office located at Wellesley Office Park, 40 William
Street, Suite 350, Wellesley, Massachusetts 02181, doing business under the name
"Silicon Valley East" ("Bank") and SYNCHRONICITY, INC., a Massachusetts
corporation with a chief executive office located at 201 Forest Street,
Marlborough, Massachusetts 01752 ("Borrower").

                                    RECITALS

      Borrower wishes to obtain credit from time to time from Bank, and Bank
desires to extend credit to Borrower. 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, 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 loan advance under the Committed
      Revolving Line.

            "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, partners and, for
      any Person that is a limited liability company, such Persons, managers and
      members.

            "Agreement" means this Loan and Security Agreement.

            "Bank Expenses" means all reasonable costs or expenses (including
      reasonable attorneys' fees and expenses) incurred in connection with the
      preparation, negotiation, administration, and enforcement of the Loan
      Documents; and Bank's reasonable attorneys" fees and expenses incurred in
      amending, enforcing or defending the Loan
<PAGE>   2
                                      -2-


      Documents, (including fees and expenses of appeal or review, or those
      incurred in any Insolvency Proceeding) whether or not suit is brought.

            "Borrower's Books" means all of Borrower's books and records
      including, without limitation: 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.

            "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.

            "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.

            "Closing Date" means the date of this Agreement.

            "Code" means the Massachusetts Uniform Commercial Code.

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

            "Committed Revolving Line" means a credit extension of up to Nine
      Hundred Thousand Dollars ($900,000.00).

            "Committed Equipment Line" means a credit extension of up to Three
      Hundred Fifty Thousand Dollars ($350,000.00).

            "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 issued 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 designated to protect a 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.
<PAGE>   3
                                      -3-


            "Credit Extension" means each Advance, Equipment Advance, 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, 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 extendable at the option of Borrower to
      a date more dm one year from the date of determination, but excluding
      Subordinated Debt.

            "Debt Service Coverage Ratio" means the ratio of EBITDA to Total
      Liabilities, each as determined in accordance with GAAP.

            "EBITDA" means the Borrower's earnings before interest, taxes,
      depreciation, and amortization, as determined in accordance with GAAP.

            "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. Unless
      otherwise agreed to by Bank in writing, 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, fifty percent
      (50%) of whose Accounts the account debtor has failed to pay within ninety
      (90) days of invoice date;

                  (c) Accounts with respect to an account debtor, including
      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;

                  (d) Accounts with respect to which the account debtor does not
      have its principal place of business in the United States;

                  (e) Accounts with respect to which the account debtor is a
      federal, state, or local governmental entity or any department, agency, or
      instrumentality thereof, except for those Accounts of the United States or
      any department, agency or instrumentality thereof as to which the payee
      has assigned its rights to payment thereof to Bank and the assignment has
      been acknowledged, pursuant to the Assignment of Claims Act of 1940, as
      amended (31 U.S.C. 3727);

                  (f) Accounts with respect to which Borrower is liable to the
      account debtor, but only to the extent of any amounts owing to the account
      debtor (sometimes
<PAGE>   4
                                      -4-


      referred to as "contra" accounts, e.g. accounts payable, customer
      deposits, credit accounts etc.) against amounts owed to Borrower;

                  (g) Accounts generated by demonstration, or promotional
      equipment, or 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;

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

                  (i) 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

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

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

            "Equipment Advance" has the meaning set forth in Section 2.1.2.

            "Equipment Availability End Date" has the meaning set forth in
      Section 2.1.2.

            "Equipment Maturity Date" is the date which is four (4) years from
      the Closing Date.

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

            "GAAP" means generally accepted accounting principles as in effect
      in the United States 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.
<PAGE>   5
                                      -5-


            "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.

            "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.

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

            "Liquidity Ratio" means the ratio of (i) Unrestricted Cash plus (ii)
      the Borrower's Reserve Position (as set forth on the Borrowing Base
      Certificate) under the Committed Revolving Line, to the aggregate amount
      of Equipment Advances outstanding.

            "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 present or future agreement
      entered into between Borrower and/or for the benefit of Bank in connection
      with this Agreement, all as amended, extended or restated from time to
      time.

            "Material Adverse Effect" means a material adverse effect on (i) the
      business operations or condition (financial or otherwise) of Borrower
      taken as a whole or (ii) the ability of Borrower to repay the Obligations
      or otherwise perform its obligations under the Loan Documents.

            "Maturity Date" means, as applicable, the Revolving Maturity Date
      or Equipment Maturity Date.

            "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.

            "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 and including any debt,
      liability, or obligation owing from Borrower to others that Bank may have
      obtained by assignment or otherwise.
<PAGE>   6
                                      -6-


            "Payment Date" means the fifteenth (15th) calendar day of each month
      commencing on the first such date after the Closing Date and ending on the
      Maturity Date.

            "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)   Subordinated Debt;

                  (d) Indebtedness to trade creditors incurred in the ordinary
      course of business; and

                  (e) Indebtedness secured by Permitted Liens.

            "Permitted Investment" means:

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

                  (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 the highest
      rating obtainable from either Standard & Poor's Corporation or Moody's
      Investors Service, Inc., and (iii) certificates of deposit maturing no
      more than one (1) year from the date of investment therein issued by Bank.

            "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 and as to which adequate reserves are
      maintained on Borrower's Books in accordance with GAAP, 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 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; and
<PAGE>   7
                                      -7-


                  (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.

            "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.

            "Quick Assets" means, as of any applicable date, the consolidated
      cash, cash equivalents, accounts receivable and investments with
      maturities of fewer than 90 days of Borrower determined in accordance with
      GAAP.

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

            "Revolving Maturity Date" means the date which is one (1) year from
      the Closing Date.

            "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 acceptable to
      Bank (and identified as being such by Borrower and Bank).

            "Tangible Net Worth" means as of any applicable date, the
      consolidated total assets of Borrower without duplication, (i) the sum of
      any amounts attributable to (a) goodwill, (b) intangible items such as
      unamortized debt discount and expense, patents, trade and service marks
      and names, copyrights and research and development expenses except prepaid
      expenses, and (c) all reserves not already deducted from assets, and (ii)
      Total Liabilities.

            "Total Liabilities" means as of any applicable date, any date as of
      which the amount thereof shall be determined, all obligations that should,
      in accordance with GAAP be classified as liabilities on the consolidated
      balance sheet of Borrower, including in any event all Indebtedness, but
      specifically excluding Subordinated Debt.

            "Unrestricted Cash" means all cash or cash equivalents (determined
      in accordance with GAAP) which are not subject to a lien other than to the
      Bank, and arise out of the Borrower's Accounts. Unrestricted Cash shall
      exclude, without limitation, any amounts due or allocated for taxes.
<PAGE>   8
                                      -8-


      1.2 Accounting and Other Terms. All accounting terms not specifically
defined herein shall be construed in accordance with GAAP and all calculations
and determinations made hereunder shall be made in accordance with GAAP. When
used herein, the term "financial statements" shall include the notes and
schedules thereto. The terms "including"/ "includes" shall always be read as
meaning "including (or includes) without limitation", when used herein or in any
other Loan Document.

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 in accordance
with the terms hereof. Borrower shall also pay interest on the unpaid principal
amount of such Credit Extensions at rates in accordance with the terms hereof.

      2.1.1 (a) Subject to and upon the terms and conditions of this Agreement,
Bank agrees to make Advances to Borrower in an aggregate outstanding amount not
to exceed the Committed Revolving Line or the Borrowing Base, whichever is less.
Subject to the terms and conditions of this Agreement, amounts borrowed pursuant
to this Section 2.1 may be repaid and reborrowed at any time during the term of
this Agreement.

            (b) Whenever Borrower desires an Advance, Borrower will notify Bank
by facsimile transmission or telephone no later dm 3:00 p.m. Pacific time, on
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. Bank will credit the amount
of Advances made under this Section 2.1 to Borrower's deposit account.

            (c) The Committed Revolving Line shall terminate on the Revolving
Maturity Date, at which time all Advances under this Section 2.1 and other
amounts due under this Agreement (except as otherwise expressly specified
herein) shall be immediately due and payable.

      2.1.2 Equipment Advances.

            (a) Subject to and upon the terms and conditions of this Agreement,
at any time from the date hereof through the date which is one (1) year from the
Closing Date (the "Equipment Availability End Date"), Bank agrees to make
advances (each an "Equipment Advance" and collectively, the "Equipment
Advances") to Borrower in an aggregate outstanding amount not to exceed the
Committed Equipment Line. To evidence the Equipment Advance or Equipment
Advances, Borrower shall deliver to Bank, at the time of each Equipment Advance
<PAGE>   9
                                      -9-


request, an invoice for the equipment to be purchased. The Equipment Advances
shall be used only to purchase Equipment purchased on or after September 30,
1997 and shall not exceed one hundred percent (100%) of the invoice amount of
such equipment approved from time to time by Bank, excluding taxes, shipping,
warranty charges, freight discounts and installation expense. Software may,
however, constitute only up to fifty percent (50%) of aggregate Equipment
Advances. Additionally, tenant improvements to the Borrower's chief executive
office may constitute only up to thirty five percent (35%) of aggregate
Equipment Advances.

            (b) Interest shall accrue from the date of each Equipment Advance at
the rate specified in Section 2.3(a) and shall be payable monthly for each month
through the month in which the Equipment Availability End Date falls. Any
Equipment Advances that are outstanding on the Equipment Availability End Date
will be payable in thirty six (36) equal monthly installments of principal, plus
all accrued interest, beginning on the Payment Date of the month following the
Equipment Availability End Date and ending on the Equipment Maturity Date.
Equipment Advances, once repaid, may not be reborrowed.

            (c) 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 3:00 p.m. Pacific time one (1) Business Day 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 the
Equipment to be financed.

      2.2 Overadvances. If, at any time or for any reason, the amount of
Obligations owed by Borrower to Bank pursuant to Section 2.1.1 of this Agreement
is greater than the lesser of (i) the Committed Revolving Line or (ii) the
Borrowing Base, Borrower shall immediately pay to Bank, in cash, the amount of
such excess.

      2.3   Interest Rates, Payments, and Calculations.

            (a) Interest Rate. Except as set forth in Section 2.3(b), any
Advances and Equipment Advances shall bear interest, on the average daily
balance thereof, at a per annum rate equal to one half of one (0.50%) percentage
point above the Prime Rate.

            (b) Default Rate. All Obligations shall bear interest, from and
after the occurrence of an Event of Default, at a rate equal to three (3)
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 each
Payment Date . Borrower hereby authorizes Bank to debit any accounts with Bank,
including, without limitation, Account Number _____________________ for payments
of principal and interest due on the Obligations and any other amounts owing by
Borrower to Bank. Bank will notify Borrower of all debits which Bank has made
against Borrower's accounts. Any such debits against Borrower's accounts in no
way shall be deemed a setoff. 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.
<PAGE>   10
                                      -10-


            (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 12:01 a.m. on 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.

      2.4 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. After the occurrence
of an Event of Default, the receipt by Bank of any wire transfer of funds,
check, or other item of payment, whether directed to Borrower's deposit account
with Bank or to the Obligations or otherwise, shall be immediately applied to
conditionally reduce Obligations, but shall not be considered a payment in
respect of the Obligations unless such payment is of immediately available
federal funds 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 Bank after 12:00 noon Pacific
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.

      2.5 Fees. Borrower shall pay to Bank the following:

            (a)   Facility Fee.  A Facility Fee equal to Two Thousand Dollars
($2,000.00), which fee shall be due on the Closing Date and shall be fully
earned and nonrefundable;

            (b) Financial Examination and Appraisal Fees. Bank's customary fees
and out-of-pocket expenses for Bank's annual audits of Borrower's Accounts, and
for each annual appraisal of Collateral and annual financial analysis and
examination of Borrower performed by Bank or its agents and all such expenses
for audits, examination, or appraisals from and after the occurrence of an Event
of Default;

            (c) Bank Expenses. Upon demand from Bank, including, without
limitation, upon the date hereof, all Bank Expenses incurred through the date
hereof, including reasonable attorneys' fees and expenses, and, after the date
hereof, all Bank Expenses, including reasonable attorneys' fees and expenses, as
and when they become due.

      2.6 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);
<PAGE>   11
                                      -11-


            (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 any loans, 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.

      2.7 Except as otherwise set forth herein, this Agreement shall become
effective on the Closing Date and, subject to Section 12.7, shall continue in
full force and effect for a term ending on the Maturity Date. 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 of this Agreement, Bank's lien on the Collateral shall remain in
effect for so long as any Obligations are outstanding.

3.    CONDITIONS OF LOANS

      3.1 Conditions Precedent to Initial Credit Extension. The obligation of
Bank to make the initial Credit Extension 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 Clerk of Borrower with respect to articles,
      bylaws, incumbency and resolutions authorizing the execution and delivery
      of this Agreement;

            (c) a negative pledge agreement covering intellectual property;

            (d)   an opinion of Borrower's counsel;

            (e)   financing statements (Forms UCC-1);

            (f)   insurance certificate;

            (g) payment of the fees and Bank Expenses then due specified in
      Section 2.5 hereof;

            (h)   Certificate of Foreign Qualification (if applicable); and
      such other documents, and completion of such other matters, as Bank may
      reasonably deem necessary or appropriate.
<PAGE>   12
                                      -12-


      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; and

            (b) the representations and warranties contained in Section 5 shall
      be true and correct in all material respects in light of the circumstances
      under which they were made and 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 result from such Credit
      Extension. The malting 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(b).

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 payment 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
acknowledges that Bank may place a "hold" on any Deposit Account pledged as
Collateral to secure the Obligations. Notwithstanding termination of this
Agreement, Bank's Lien on the Collateral shall remain in effect for so long as
any Obligations are outstanding.

      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, 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 is a corporation duly
existing and in good standing under the laws of its state of incorporation and
qualified and licensed to do
<PAGE>   13
                                      -13-


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.

      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 Articles 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 feasible 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. To the Borrower's knowledge, the service or property
giving rise to such Eligible Accounts has been performed or delivered to the
account debtor or to the account debtor's agent for immediate shipment to and
unconditional acceptance by the account debtor. Borrower has not received notice
of actual or imminent Insolvency Proceeding of any account debtor whose accounts
are included in any Borrowing Base Certificate as an Eligible Account.

      5.5 Merchantable Inventory. To the Borrower's knowledge, all Inventory is
in all material respects of good and marketable quality, free from all material
defects.

      5.6 Name: Location of Chief Executive Office. Except as disclosed in the
Schedule, Borrower has not done business and will not without at least thirty
(30) days prior written notice to Bank do 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.

      5.7 Litigation. Except as set forth in the Schedule, there are no actions
or proceedings pending, or, to Borrower's knowledge, threatened by or against
Borrower 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.

      5.8 No Material Adverse Change in Financial Statements. All consolidated
financial statements related to Borrower that have been delivered by Borrower to
Bank fairly present in all material respects Borrower's consolidated financial
condition as of the date thereof and for the periods specified therein 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 on or about the Closing Date.

      5.9 Solvency. Borrower is able to pay its debts (including trade debts) as
they mature.

      5.10 Regulatory Compliance. Borrower has 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
<PAGE>   14
                                      -14-


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 its important activities, in
the business of extending credit for the purpose of purchasing or carrying
margin stock (within the meaning of Regulations G, T and U of the Board of
Governors of the 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.

      5.11 Environmental Condition. To the Borrower's knowledge, none of
Borrower's properties or assets has ever been used by Borrower 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; and Borrower has not
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 resulting in the release, or other
disposition of hazardous waste or hazardous substances into the environment.

      5.12 Taxes. Borrower has filed or caused to be filed all tax ream required
to be filed on a timely basis, and has paid, or has made adequate provision for
the payment of, all taxes reflected therein, unless contested by the Borrower in
good faith pursuant to appropriate proceedings.

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

      5.14 Government Consents. Borrower has 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, failure of which would
not cause a Material Adverse Effect.

      5.15 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 in light of the circumstances under which
representation or warranty was made.
<PAGE>   15
                                      -15-


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 corporate existence and
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. Borrower shall maintain, to the extent consistent with prudent
management of Borrower's business, in force all licenses, approvals and
agreements, the loss of which could have a Material Adverse Effect.

      6.2 Government Compliance. Borrower shall meet the minimum funding
requirements of ERISA with respect to any employee benefit plans subject to
ERISA. Borrower shall 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 twenty five (25) days
after the end of each month, a company prepared consolidated balance sheet and
income statement covering Borrower's consolidated operations during such period,
in a form and certified by an officer of Borrower reasonably acceptable to Bank;
(b) as soon as available, but in any event within ninety (90) 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 (c) within ten (10) days of
filing, 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 Form 10K, 10-Q and 8K 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 that could result in
damages or costs to Borrower 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.

            Within twenty five (25) days after the last day of each month (or
portion thereof) during which there are any Advances outstanding under the
Committed Revolving Line, Borrower shall deliver to Bank a Borrowing Base
Certificate signed by a Responsible Officer in substantially the form of Exhibit
C hereto, together with aged listings of accounts receivable provided however
that the Borrowing Base Certificate shall be delivered only in the event that
the Borrower has requested Advances under the Committed Revolving Line.

            Within twenty five (25) days after the last day of each month,
Borrower shall deliver to Bank with the monthly financial statements a
Compliance Certificate signed by a Responsible Officer in substantially the form
of Exhibit D hereto.
<PAGE>   16
                                      -16-


            Bank shall have a right from time to time hereafter to audit
Borrower's Accounts at Borrower's expense, provided that such audits will be
conducted no more often than once every twelve (12) months unless an Event of
Default has occurred and is continuing with the first such audit to take place
within one hundred eighty (180) days of the Closing Date.

      6.4 Inventory: Returns. Borrower shall keep all Inventory in good and
marketable condition, free from all material defects. Ream 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 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
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 has made such payments or deposits; provided that
Borrower need not make any payment if (i) the amount or validity of such payment
is contested in good faith by appropriate proceedings, (ii) Borrower has
established proper reserves (to the extent required by GAAP) and (iii) no lien
other than a Permitted Lien results.

      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 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 are 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. At Bank's
request, Borrower 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. Borrower shall maintain its principal
depository and operating accounts with Bank.
<PAGE>   17
                                      -17-


      6.8 Quick Ratio. Borrower shall maintain, as of the last day of each
calendar month, a ratio of Quick Assets to Current Liabilities of at least 1.50
to 1.0.

      6.9 Liquidity Ratio/Debt Service Coverage. Borrower shall maintain, as of
the last day of each calendar month either (i) a Liquidity Ratio of at least
1.50 to 1.0 or (ii) a Debt Service Coverage Ratio of 1.25 to 1.0 (measured for
the preceding calendar quarter).

      6.10 Tangible Net Worth. Borrower shall maintain, as of the last day of
each calendar month, a Tangible Net Worth of not less than One Million Five
Hundred Thousand Dollars ($1,500,000.00).

      6.11 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 COVENANT

      Borrower covenants and agrees that, so long as any Credit Extension
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 Advances,
Borrower will not do any of the following:

      7.1 Dispositions. Convey, sell, lease, transfer or otherwise dispose of
(collectively, a "Transfer") all or any part of its business or property, other
than Transfers: (i) of inventory in the ordinary course of business, (ii) of
non-exclusive licenses and similar arrangements for the use of the property of
Borrower in the ordinary course of business; (iii) that constitute payment of
normal and usual operating expenses in the ordinary course of business; or (iv)
of worn-out or obsolete Equipment.

      7.2 Changes in Business, Ownership, or Management, Business Locations.
Engage in any business, other than the businesses currently engaged in by
Borrower and any business substantially similar or related thereto (or
incidental thereto), or suffer a material adverse change in Borrower's ownership
or management. Borrower will not, without at least thirty (30) days prior
written notification to Bank, relocate its chief executive office or add any new
offices or business locations.

      7.3 Mergers or Acquisitions. Merge or consolidate with or into any other
business organization, or 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 other than Permitted Indebtedness.

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

      7.6 Distributions. Pay any dividends or make any other distribution or
payment on account of or in redemption, retirement or purchase of any capital
stock.
<PAGE>   18
                                      -18-


      7.7 Investments. Directly or indirectly acquire or own, or make any
Investment in or to any Person, other than Permitted Investments.

      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, upon
fair and reasonable terms that are no less favorable to Borrower than would be
obtained in an arm's length transaction with a nonaffiliated Person.

      7.9 Subordinated Debt. Make any payment in respect of any Subordinated
Debt, 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. Store the Inventory with a bailee, warehouseman, or
similar party unless Bank has received a pledge of any warehouse receipt
covering such Inventory. Except for Inventory sold in the ordinary course of
business and except for such other locations as Bank may approve in writing,
Borrower shall keep the Inventory only at the location set forth in Section 10
hereof and such other locations of which Borrower gives Bank prior written
notice and as to which Borrower signs and files a financing statement where
needed to perfect Bank's security interest.

      7.11 Compliance. Become an "investment company" or a company controlled by
an "investment company," within the meaning of the Investment Company Act of
1940, or become principally engaged in, or under 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 Advance 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 other 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.

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 Sections 6.3,
6.5, 6.6, 6.7, 6.8, 6.9, or 6.10 or violates any of the covenants contained in
Article 7 of this Agreement; or

            (b) 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 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, covenant or agreement that can
<PAGE>   19
                                      -19-


be cured, has failed to cure such default within ten (10) days after the
occurrence thereof, provided, however, that if the default cannot by its nature
be cured within the ten (10) day period or cannot after diligent attempts by
Borrower be cured within such ten (10) 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 thirty (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 (provided
that no Advances will be required to be made during such cure period);

      8.3 Material Adverse Change. If there (i) occurs a material adverse change
in the business, operations, or condition (financial or otherwise) of the
Borrower, or (ii) is a material impairment of the prospect of repayment of any
portion of the Obligations or (iii) is a material impairment of the value or
priority of Bank's security interests in the Collateral:

      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 45 days (provided that no
Advances 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 parry 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 Fifty Thousand Dollars
($50,000) shall be rendered against Borrower and shall remain unsatisfied and
unstayed for a period of ten (10) days
<PAGE>   20
                                      -20-


(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 or writing delivered to Bank by Borrower or any
Person acting on Borrower's behalf 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) Without notice to or demand upon Borrower, 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 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 premises, Borrower hereby grants Bank a license to enter such
      premises and to occupy the same, without charge;

            (e) Without notice to Borrower 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 nonexclusive, royalty-free
      license or other right, solely pursuant to the provisions of this Section
      9.1, to use, without charge, Borrower's labels, patents, copyrights, mask
      works, 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
<PAGE>   21
                                      -21-


      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 all licenses and
      all franchise agreements shall inure to Bank's benefit;

            (g) 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 Bank
      determines is commercially reasonable, and apply the proceeds thereof to
      the Obligations in accordance with applicable law, if any;

            (h) Bank may credit bid and purchase at any public sale, or at any
      private sale as permitted by law; and

            (i) Any deficiency that exists after disposition of the Collateral
      as provided above will be paid immediately by Borrower.

      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) make, settle, and adjust all claims under and decisions with
respect to Borrower's policies of insurance; and (e) 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 (f) to file, in its
sole discretion, one or more financing or continuation statements and amendments
thereto, relative to any of the Collateral without the signature of Borrower
where permitted by law, 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 advances hereunder is terminated.

      9.3 Accounts Collection. Upon the occurrence and during the continuance 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 if requested or required by Bank,
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 cash 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: (a)
make payment of the same or any part thereof, (b) set up such reserves under the
Committed Revolving Line as Bank deems necessary to protect Bank from the
exposure created by such failure; or (c) obtain and maintain insurance policies
of
<PAGE>   22
                                      -22-


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 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 expressly set forth herein 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 m 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 firs-class mail, postage
prepaid) shall be personally delivered or sent by a recognized overnight
delivery service, by certified mad, 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                Synchronicity, Inc.
                                          201 Forest Street
                                          Marlborough, Massachusetts 01752
                                          Attn:  Mr. Eugene Connolly
                                          FAX: (508)-485-7514
<PAGE>   23
                                      -23-


            with a copy to:               Testa, Hurwitz & Thibeault, LLP
                                          125 High Street
                                          Boston, Massachusetts 02110
                                          Attn:  Jennifer A. Post, Esquire
                                          FAX:  (617) 248-7100

            If to Bank                    Silicon Valley Bank
                                          40 William Street
                                          Wellesley, Massachusetts 02181
                                          Attn:  James C. Maynard, Vice
                                          President
                                          FAX:  (781) 431-9906

            with a copy to:               Riemer & Braunstein
                                          Three Center Plaza
                                          Boston, Massachusetts 02108
                                          Attn:  David A. Ephraim, Esquire
                                          FAX:  (617) 723-6831


      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 WAIVER

      The laws of the Commonwealth of Massachusetts shall apply to this
Agreement. BORROWER ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES,
UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT OF
COMPETENT JURISDICTION IN THE COMMONWEALTH OF MASSACHUSETTS IN ANY ACTION, SUIT,
OR PROCEEDING OF ANY KIND, AGAINST IT WHICH ARISES OUT OF OR BY REASON OF THIS
AGREEMENT; PROVIDED, HOWEVER, THAT IF FOR ANY REASON BANK CANNOT AVAIL ITSELF OF
THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS, BORROWER ACCEPTS JURISDICTION
OF THE COURTS AND VENUE IN SANTA CLARA COUNTY, 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.
<PAGE>   24
                                      -24-


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 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 , indemnify defend, protect 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 the Loan Documents;
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 the Loan Documents, 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 except by a writing signed by Borrower and Bank. 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.

      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 Countersignature. This Agreement shall become effective only when it
shall have been executed by Borrower and Bank (provided, however, in no event
shall this Agreement become effective until signed by an officer of Bank in
California).
<PAGE>   25
                                      -25-


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

                                    SYNCHRONICITY, INC.


                                    By: Eugene Connolly
                                        ____________________________________

                                    Title: Vice President
                                        __________________________________


                                    By: ____________________________________

                                    Title: __________________________________


                                    SILICON VALLEY BANK, d/b/a SILICON VALLEY
                                      EAST


                                    By: Carolyn Macedo
                                        ____________________________________

                                    Name: _________________________________

                                    Title: __________________________________


                                    SILICON VALLEY BANK


                                    By: Michelle Giannini
                                        ____________________________________

                                    Name: _________________________________

                                    Title: __________________________________
                                          (Signed in Santa Clara County,
                                          California)
<PAGE>   26
                                    EXHIBIT A

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

            (a) All goods and equipment now owned or hereafter acquired,
      including, without limitation, all machinery, fixtures, vehicles
      (including motor vehicles and trailers), and any interest in any of the
      foregoing, and all attachments, accessories, accessions, replacements,
      substitutions, additions, and improvements to any of the foregoing,
      wherever located;

            (b) All inventory, now owned or hereafter acquired, including,
      without limitation, all merchandise, raw materials, parts, supplies,
      packing and shipping materials, work in process and finished products
      including such inventory as is temporarily out of Borrower's 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;

            (c) All contract rights and general intangibles now owned or
      hereafter acquired, including, without limitation, goodwill, leases,
      license agreements, franchise agreements, blueprints, drawings, purchase
      orders, customer lists, route lists, claims, literature, reports,
      catalogs, income tax refunds, payments of insurance and rights to payment
      of any kind,

            (d) All now existing and hereafter arising accounts, contract
      rights, royalties, license rights and all other forms of obligations owing
      to Borrower arising out of the sale or lease of goods, the licensing of
      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;

            (e) All documents, cash, deposit accounts, securities, letters of
      credit, certificates of deposit, instruments and chattel paper now owned
      or hereafter acquired and Borrower's Books relating to the foregoing; and

            (f) Any and all claims, rights and interests in any of the above and
      all substitutions for, additions and accessions to and proceeds thereof.

      Notwithstanding the foregoing, the Collateral shall not be deemed to
include any copyright rights, copyright applications, copyright registrations
and like protections in each work of authorship and derivative work thereof,
whether published or unpublished, now owned or hereafter acquired; any patents,
trademarks, servicemarks and applications therefor; any trade secret rights,
including any rights to unpatented inventions, know-how, operating manuals,
license rights and agreements and confidential information, now owned or
hereafter acquired; or
<PAGE>   27
any claims for damages by way of any past, present and future infringement of
any of the foregoing.
<PAGE>   28
                                    EXHIBIT B

                 LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM DEADLINE FOR SAME
            DAY PROCESSING IS 3:00 P.M., P.S.T.

TO:  CENTRAL CLIENT SERVICE DIVISION                   DATE: _________________
FAX#: (408) _______________________________________    TIME: _________________
FROM:_________________________________________________________________________
        BORROWER'S NAME
FROM: ________________________________________________________________________
        AUTHORIZED SIGNER'S NAME
______________________________________________________________________________
        AUTHORIZED SIGNATURE
PHONE:
________________________________________
FROM ACCOUNT # _________________________        TO ACCOUNT # _______________


<TABLE>
<CAPTION>
     REQUESTED TRANSACTION TYPE                 REQUEST DOLLAR AMOUNT
     --------------------------                 ---------------------
<S>                                             <C>
     PRINCIPAL INCREASE (ADVANCE)               $
     PRINCIPAL PAYMENT (ONLY)                   $
     INTEREST PAYMENT (ONLY)                    $
     PRINCIPAL AND INTEREST (PAYMENT)           $
</TABLE>

     OTHER INSTRUCTIONS:

      All representations and warranties of Borrower stated in the Loan and
Security Agreement are true, correct and complete in all material respects as of
the date of the telephone request for and Advance confirmed by this Advance
Request; 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.



                                 BANK USE ONLY:
                               TELEPHONE REQUEST:

The following person is authorized to request the loan payment transfer/loan
advance on the advance designated account and is known to me.

____________________________________
Authorized Requester

                          _________________________________
                           Authorized Signature (Bank)

                            Phone # ________________
<PAGE>   29
                                    EXHIBIT C

BORROWING BASE CERTIFICATE

<TABLE>
<CAPTION>
Borrower:  Synchronicity, Inc.                             Bank:  Silicon Valley Bank
<S>                                                        <C>
Commitment Amount:  $900,000.00
ACCOUNTS RECEIVABLE
     1.   Accounts Receivable Book Value as of              $
     2.   Additions (please explain on reverse)             $
     3.   TOTAL ACCOUNTS RECEIVABLE                         $
ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
     4.   Amounts over 90 days due                          $
     5.   Balance of 50% over 90 day accounts               $
     6.   Concentration Limits                              $
     7.   Foreign Accounts                                  $
     8.   Governmental Accounts                             $
     9.   Contra Accounts                                   $
     10.  Promotion or 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 (___% of #14)              $
BALANCES
     16.  Maximum Loan Amount                               $
     17.  Total Funds Available [Lesser of #16 or #15]      $
     18.  Present balance owing on Line of Credit           $
     19.  RESERVE POSITION (#16 minus #17 and #18)          $
</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 Silicon Valley Bank.

                                               =================================
COMMENTS:                                               BANK USE ONLY
SYNCHRONICITY, INC.
                                               Received By:
                                                             -------------------
                                               Date:
                                                     ---------------------------
By:                                            Reviewed By:
   ------------------------------------                     --------------------
           Authorized Signer                   Compliance Status:  Yes / No
                                               =================================
<PAGE>   30
                                    EXHIBIT D
                             COMPLIANCE CERTIFICATE

TO:   SILICON VALLEY BANK
FROM: SYNCHRONICITY, INC.

The undersigned authorized officer of SYNCHRONICITY, 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. The Officer expressly
acknowledges that h no borrowings may be requested by the Borrower at any time
or date of determination that Borrower is not in compliance with any of the
terms of the Agreement, and that such compliance is determined not just at the
date this certificate is delivered.

Please indicate compliance status by  circling Yes/No under "Complies" column.

<TABLE>
<CAPTION>
Reporting Covenant               Required                          Complies
------------------               --------                          ---------

<S>                              <C>                               <C>    <C>
Monthly financial statements     Monthly within 25 days            Yes    No
Annual (CPA Audited)             FYE within 90 days                Yes    No
10-Q and 10-K                    Within 5 days after filing
                                 with the SEC                      Yes    No
A/R Agings                       Monthly within 25 days            Yes    No
</TABLE>

<TABLE>
<CAPTION>
Financial Covenant               Required          Actual          Complies
------------------               --------          ------          --------
<S>                              <C>               <C>             <C>    <C>
Maintain on a Monthly Basis:
Minimum Quick Ratio              1.50:1.0             :1.0         Yes    No
                                                   ---
Minimum Liquidity Ratio          1.50:1.0             :1.0         Yes    No
                                                   ---
Minimum Debt Service             1.25:1.0             :1.0         Yes    No
                                                   -------
Minimum Tangible Net Worth       $1,500,000.00                     Yes    No
                                                   -------
</TABLE>

                                               =================================
Comments Regarding Exceptions:                          BANK USE ONLY
Sincerely,
                                               Received By:
                                               -------------------------
                                               Date:
---------------------------------------        -------------------------------
Signature                 Date:--------        Reviewed By:
                                               ------------------------
---------------------------------------        Compliance Status:  Yes / No
Title:
                                               =================================
<PAGE>   31
                     DISBURSEMENT REQUEST AND AUTHORIZATION



Borrower:   Synchronicity, Inc                  Bank:    Silicon Valley Bank


LOAN TYPE.  This is a Variable Rate, Revolving Line of Credit of a principal
amount up to $900,000.00.

PRIMARY PURPOSE OF LOAN.  The primary purpose of this loan is for business.

SPECIFIC PURPOSE.  The specific purpose of this loan is:                       .
                                                         ----------------------

DISBURSEMENT INSTRUCTIONS. Borrower understands that no loan proceeds will be
disbursed until all of Bank's conditions for making the loan have been
satisfied. Please disburse the loan proceeds as follows:


            Revolving Loan

<TABLE>
<S>                                                       <C>
                  Amount paid to Borrower directly:       $      0.00
                  Undisbursed Funds:                      $900,000.00
                  Principal:                              $900,000.0l0
</TABLE>

AUTOMATIC PAYMENTS. Borrower hereby authorizes Bank automatically to deduct from
Borrower's account numbered __________ the amount of any loan payment. If the
funds in the account are insufficient to cover any payment, Bank shall not be
obligated to advance funds to cover the payment.

FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND
WARRANTS TO BANK THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND
THAT THERE HAS BEEN NO ADVERSE CHANGE IN BORROWER'S FINANCIAL CONDITION AS
DISCLOSED IN BORROWER'S MOST RECENT FINANCIAL STATEMENT TO BANK. THIS
AUTHORIZATION IS DATED AS OF _________________, 1998.

BORROWER: SYNCHRONICITY, INC


-------------------------------------
Authorized Officer
<PAGE>   32
                         AGREEMENT TO PROVIDE INSURANCE

Grantor:    Synchronicity, Inc                  Bank:    Silicon Valley Bank

      INSURANCE REQUIREMENTS.  Synchronicity, Inc. ("Grantor") understands
that insurance coverage is required in connection with the extending of a
loan or the providing of other financial accommodations to Grantor by Bank.
These requirements are set forth in the Loan Documents.  The following
minimum insurance coverages must be provided on the following described
collateral (the "Collateral"):

<TABLE>
<S>                       <C>
      Collateral:         All Inventory, Equipment and Fixtures.
      Type:               All risks, including fire, theft and liability.
      Amount:             Full insurable value.
      Basis:              Replacement value.
      Endorsements:       Loss payable clause to Bank with stipulation that coverage
                          will not be cancelled or diminished without a minimum of
                          twenty (20) days' prior written notice to Bank.
</TABLE>

      INSURANCE COMPANY. Grantor may obtain insurance from any insurance company
Grantor may choose that is reasonably acceptable to Bank. Grantor understands
that credit may not be denied solely because insurance was not purchased through
Bank.

      FAILURE TO PROVIDE INSURANCE. Grantor agrees to deliver to Bank, on or
before closing, evidence of the required insurance as provided above, with an
effective date of ________________________________, or earlier. Grantor
acknowledges and agrees that if Grantor fails to provide any required insurance
or fails to continue such insurance in force, Bank may do so at Grantor's
expense as provided in the Loan and Security Agreement. The cost of such
insurance, at the option of Bank, shall be payable on demand or shall be added
to the indebtedness as provided in the security document. GRANTOR ACKNOWLEDGES
THAT IF BANK SO PURCHASES ANY SUCH INSURANCE, THE INSURANCE WILL PROVIDE LIMITED
PROTECTION AGAINST PHYSICAL DAMAGE TO THE COLLATERAL, UP TO THE BALANCE OF THE
LOAN; HOWEVER, GRANTOR'S EQUITY IN THE COLLATERAL MAY NOT BE INSURED. IN
ADDITION, THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE
INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAL
RESPONSIBILITY LAWS.

      AUTHORIZATION. For purposes of insurance coverage on the Collateral,
Grantor authorizes Bank to provide to any person (including any insurance agent
or company) all information Bank deems appropriate, whether regarding the
Collateral, the loan or other financial accommodations, or both.
<PAGE>   33
      GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF TIE[S AGREEMENT
TO PROVIDE INSURANCE AND AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED
________________________________, 1998

GRANTOR:  SYNCHRONICITY, INC.

By:
    -----------------------------------------
      Authorized Officer

================================================================================
FOR BANK USE ONLY
                             INSURANCE VERIFICATION
DATE:
PHONE:
AGENT'S NAME:
INSURANCE COMPANY:
POLICY NUMBER:
EFFECTIVE DATES:
COMMENTS:
================================================================================