<PAGE>

        ------------------------------------------------------------------------
                                                                   Exhibit 10(j)

Silicon Valley Bank

                          Loan and Security Agreement

Borrower: NetPlex Systems, Inc.
Address:       1800 Robert Fulton Drive, Suite 250
               Reston, Virginia 20191

Date:     July 31, 2000

THIS LOAN AND SECURITY AGREEMENT is entered into on the above date between
SILICON VALLEY BANK, COMMERCIAL FINANCE DIVISION ("Silicon"), whose address is
3003 Tasman Drive, Santa Clara, California 95054 and the borrower(s) named above
(jointly and severally, the "Borrower"), whose chief executive office is located
at the above address ("Borrower's Address"). The Schedule to this Agreement (the
"Schedule") shall for all purposes be deemed to be a part of this Agreement, and
the same is an integral part of this Agreement. (Definitions of certain terms
used in this Agreement are set forth in Section 8 below.)

1.   LOANS.

   1.1 Loans. Silicon will make loans to Borrower (the "Loans"), in amounts
determined by Silicon in its good-faith business judgment, up to the amounts
(the "Credit Limit") shown on the Schedule, provided no Default or Event of
Default has occurred and is continuing, and subject to deduction of any Reserves
for accrued interest and such other Reserves as Silicon deems proper from time
to time.

   1.2 Interest. All Loans and all other monetary Obligations shall bear
interest at the rate shown on the Schedule, except where expressly set forth to
the contrary in this Agreement. Interest shall be payable monthly, on the last
day of the month. Interest may, in Silicon's discretion, be charged to
Borrower's loan account, and the same shall thereafter bear interest at the same
rate as the other Loans. Silicon may, in its discretion, charge interest to
Borrower's Deposit Accounts maintained with Silicon. Regardless of the amount of
Obligations that may be outstanding from time to time, Borrower shall pay
Silicon minimum monthly interest during the term of this Agreement in the amount
set forth on the Schedule (the "Minimum Monthly Interest").

   1.3 Overadvances. If at any time or for any reason the total of all
outstanding Loans and all other Obligations exceeds the Credit Limit (an
"Overadvance"), Borrower shall immediately pay the amount of the excess to
Silicon, without notice or demand. Without limiting Borrower's obligation to
repay to Silicon on demand the amount of any Overadvance, Borrower agrees to pay
Silicon interest on the outstanding amount of any Overadvance, on demand, at a
rate equal to the interest rate which would otherwise be applicable to the
Overadvance, plus an additional 2% per annum.

   1.4 Fees. Borrower shall pay Silicon the fee(s) shown on the Schedule, which
are in addition to all interest and other sums payable to Silicon and are not
refundable.

   1.5 Letters of Credit.  [Not Applicable].

2.   SECURITY INTEREST.

   2.1 Security Interest. To secure the payment and performance of all of the
Obligations when due, Borrower hereby grants to Silicon a security interest in
all of Borrower's interest in the following, whether now owned or hereafter
acquired, and wherever located: All Inventory, Equipment, Receivables, and
General Intangibles, including, without limitation, all of Borrower's Deposit
Accounts, and all money, and all property now or at any time in the future in
Silicon's possession (including claims and credit balances), and all proceeds
(including proceeds of any insurance policies, proceeds of proceeds and claims
against third parties), all products and all books and records related to any of
the foregoing (all of the foregoing, together with all other property in which
Silicon may now or in the future be granted a lien or security interest, is
referred to herein, collectively, as the "Collateral").

3.  REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWER.

   In order to induce Silicon to enter into this Agreement and to make Loans,
Borrower represents and warrants to Silicon as follows, and Borrower covenants
that the following representations will continue to be true, and that

                                      -1-
<PAGE>

          Silicon Valley Bank                       Loan and Security Agreement
          ----------------------------------------------------------------------

Borrower will at all times comply with all of the following covenants:

   3.1 Corporate Existence and Authority. Borrower, if a corporation, is and
will continue to be, duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation. Borrower is and will continue
to be qualified and licensed to do business in all jurisdictions in which any
failure to do so would have a material adverse effect on Borrower. The
execution, delivery and performance by Borrower of this Agreement, and all other
documents contemplated hereby (i) have been duly and validly authorized, (ii)
are enforceable against Borrower in accordance with their terms (except as
enforcement may be limited by equitable principles and by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to creditors'
rights generally), and (iii) do not violate Borrower's articles or certificate
of incorporation, or Borrower's by-laws, or any law or any material agreement or
instrument which is binding upon Borrower or its property, and (iv) do not
constitute grounds for acceleration of any material indebtedness or obligation
under any material agreement or instrument which is binding upon Borrower or its
property.

   3.2 Name; Trade Names and Styles. The name of Borrower set forth in the
heading to this Agreement is its correct name. Listed on the Schedule are all
prior names of Borrower and all of Borrower's present and (to the best of its
knowledge) prior trade names. Borrower shall give Silicon 30 days' prior written
notice before changing its name or doing business under any other name. Borrower
has complied, and will in the future comply, with all laws relating to the
conduct of business under a fictitious business name.

   3.3 Place of Business; Location of Collateral. The address set forth in the
heading to this Agreement is Borrower's chief executive office. In addition,
Borrower has places of business and Collateral is located only at the locations
set forth on the Schedule. Borrower will give Silicon at least 30 days prior
written notice before opening any additional place of business, changing its
chief executive office, or moving any of the Collateral to a location other than
Borrower's Address or one of the locations set forth on the Schedule.

   3.4 Title to Collateral; Permitted Liens. Borrower is now, and will at all
times in the future be, the sole owner of all the Collateral, except for items
of Equipment which are leased by Borrower. The Collateral now is and will remain
free and clear of any and all liens, charges, security interests, encumbrances
and adverse claims, except for Permitted Liens. Silicon now has, and will
continue to have, a first-priority perfected and enforceable security interest
in all of the Collateral, subject only to the Permitted Liens, and Borrower will
at all times defend Silicon and the Collateral against all claims of others.
None of the Collateral now is or will be affixed to any real property in such a
manner, or with such intent, as to become a fixture. Except for any landlord's
liens arising by operation of law, Borrower is not and will not become a lessee
under any real property lease pursuant to which the lessor may obtain any rights
in any of the Collateral and no such lease now prohibits, restrains, impairs or
will prohibit, restrain or impair Borrower's right to remove any Collateral from
the leased premises. Whenever any Collateral is located upon premises in which
any third party has an interest (whether as owner, mortgagee, beneficiary under
a deed of trust, lien or otherwise), Borrower shall, whenever requested by
Silicon, use its commercially reasonable efforts to cause such third party to
execute and deliver to Silicon, in form acceptable to Silicon, such waivers and
subordinations as Silicon shall specify, so as to ensure that Silicon's rights
in the Collateral are, and will continue to be, superior to the rights of any
such third party. Borrower will keep in full force and effect, and will comply
with all the terms of, any lease of real property where any of the Collateral
now or in the future may be located, except to the extent Borrower relocates its
offices or moves any Collateral in accordance with Section 3.3 hereof.

   3.5 Maintenance of Collateral. Borrower will maintain the Collateral in good
working condition, and Borrower will not use the Collateral for any unlawful
purpose. Borrower will promptly advise Silicon in writing of any material loss
or damage to the Collateral.

   3.6 Books and Records. Borrower has maintained and will maintain at
Borrower's Address complete and accurate books and records, comprising an
accounting system in accordance with generally accepted accounting principles.

   3.7 Financial Condition, Statements and Reports. All financial statements now
or in the future delivered to Silicon have been, and will be, prepared in
conformity with generally accepted accounting principles and now and in the
future will completely and accurately reflect the financial condition of
Borrower, at the times and for the periods therein stated. Except as otherwise
previously disclosed to Silicon in writing, between the last date covered by any
such statement provided to Silicon and the date hereof, there has been no
material adverse change in the financial condition or business of Borrower.
Borrower is now and will continue to be solvent.

   3.8 Tax Returns and Payments; Pension Contributions. Borrower has timely
filed, and will timely file, all tax returns and reports required by foreign,
federal, state and local law, and Borrower has timely paid, and will timely pay,
all foreign, federal, state and local taxes, assessments, deposits and
contributions now or in

                                      -2-
<PAGE>

          Silicon Valley Bank                       Loan and Security Agreement
          ----------------------------------------------------------------------

the future owed by Borrower. Borrower may, however, defer payment of any
contested taxes, provided that Borrower (i) in good faith contests Borrower's
obligation to pay the taxes by appropriate proceedings promptly and diligently
instituted and conducted, (ii) notifies Silicon in writing of the commencement
of, and any material development in, the proceedings, and (iii) posts bonds or
takes any other steps required to keep the contested taxes from becoming a lien
upon any of the Collateral. Borrower is unaware of any claims or adjustments
proposed for any of Borrower's prior tax years which could result in additional
taxes becoming due and payable by Borrower. Borrower has paid, and shall
continue to pay all amounts necessary to fund all present and future pension,
profit sharing and deferred compensation plans in accordance with their terms,
and Borrower has not and will not withdraw from participation in, permit partial
or complete termination of, or permit the occurrence of any other event with
respect to, any such plan which could result in any liability of Borrower,
including any liability to the Pension Benefit Guaranty Corporation or its
successors or any other governmental agency. Borrower shall, at all times,
utilize the services of an outside payroll service providing for the automatic
deposit of all payroll taxes payable by Borrower.

   3.9  Compliance with Law. Borrower has complied, and will comply, in all
material respects, with all provisions of all foreign, federal, state and local
laws and regulations relating to Borrower, including, but not limited to, those
relating to Borrower's ownership of real or personal property, the conduct and
licensing of Borrower's business, and all environmental matters.

   3.10 Litigation. Except as disclosed in the Schedule, there is no claim,
suit, litigation, proceeding or investigation pending or (to best of Borrower's
knowledge) threatened by or against or affecting Borrower in any court or before
any governmental agency (or any basis therefor known to Borrower) which may
result, either separately or in the aggregate, in any material adverse change in
the financial condition or business of Borrower, or in any material impairment
in the ability of Borrower to carry on its business in substantially the same
manner as it is now being conducted. Borrower will promptly inform Silicon in
writing of any claim, proceeding, litigation or investigation in the future
threatened or instituted by or against Borrower involving any single claim of
$50,000 or more, or involving $100,000 or more in the aggregate.

   3.11 Use of Proceeds. All proceeds of all Loans shall be used solely for
lawful business purposes. Borrower is not purchasing or carrying any "margin
stock" (as defined in Regulation U of the Board of Governors of the Federal
Reserve System) and no part of the proceeds of any Loan will be used to purchase
or carry any "margin stock" or to extend credit to others for the purpose of
purchasing or carrying any "margin stock."

4. RECEIVABLES.

   4.1 Representations Relating to Receivables. Borrower represents and warrants
to Silicon as follows: Each Receivable with respect to which Loans are requested
by Borrower shall, on the date each Loan is requested and made, (i) represent an
undisputed bona fide existing unconditional obligation of the Account Debtor
created by the sale, delivery, and acceptance of goods or the rendition of
services in the ordinary course of Borrower's business, and (ii) meet the
Minimum Eligibility Requirements set forth in Section 8 below.

   4.2 Representations Relating to Documents and Legal Compliance. Borrower
represents and warrants to Silicon as follows: All statements made and all
unpaid balances appearing in all invoices, instruments and other documents
evidencing the Receivables are and shall be true and correct and all such
invoices, instruments and other documents and all of Borrower's books and
records are and shall be genuine and in all respects what they purport to be,
and all signatories and endorsers have the capacity to contract. All sales and
other transactions underlying or giving rise to each Receivable shall fully
comply with all applicable laws and governmental rules and regulations. All
signatures and endorsements on all documents, instruments, and agreements
relating to all Receivables are and shall be genuine, and all such documents,
instruments and agreements are and shall be legally enforceable in accordance
with their terms.

   4.3 Schedules and Documents relating to Receivables. Borrower shall deliver
to Silicon transaction reports and loan requests, schedules and assignments of
all Receivables, and schedules of collections, all on Silicon's standard forms;
provided, however, that Borrower's failure to execute and deliver the same shall
not affect or limit Silicon's security interest and other rights in all of
Borrower's Receivables, nor shall Silicon's failure to advance or lend against a
specific Receivable affect or limit Silicon's security interest and other rights
therein. Loan requests received after 12:00 Noon will not be considered by
Silicon until the next Business Day. Together with each such schedule and
assignment, or later if requested by Silicon, Borrower shall furnish Silicon
with copies (or, at Silicon's request, originals) of all contracts, orders,
invoices, and other similar documents, and all original shipping instructions,
delivery receipts, bills of lading, and other evidence of delivery, for any
goods the sale or disposition of which gave rise to such Receivables, and
Borrower warrants the genuineness of all of the foregoing. Borrower shall also
furnish to Silicon an aged accounts receivable trial balance in such form and at
such intervals as Silicon shall request. In addition, Borrower shall deliver to
Silicon the originals of all instruments, chattel paper, security agreements,
guarantees and other documents and property evidencing or securing any
Receivables, immediately upon receipt thereof and in the same form as received,
with all necessary indorsements, all of which shall be with recourse. Borrower
shall also

                                      -3-
<PAGE>

          Silicon Valley Bank                       Loan and Security Agreement
          ----------------------------------------------------------------------

provide Silicon with copies of all credit memos within two days after the date
issued.

   4.4 Collection of Receivables. Borrower shall have the right to collect all
Receivables, unless and until a Default or an Event of Default has occurred.
Borrower shall hold all payments on, and proceeds of, Receivables in trust for
Silicon, and Borrower shall immediately deliver all such payments and proceeds
to Silicon in their original form, duly endorsed in blank, to be applied to the
Obligations in such order as Silicon shall determine. Silicon may, in its
discretion, require that all proceeds of Collateral be deposited by Borrower
into a lockbox account, or such other "blocked account" as Silicon may specify,
pursuant to a blocked account agreement in such form as Silicon may specify.
Silicon or its designee may, at any time, notify Account Debtors that the
Receivables have been assigned to Silicon.

   4.5 Remittance of Proceeds. All proceeds arising from the disposition of any
Collateral shall be delivered, in kind, by Borrower to Silicon in the original
form in which received by Borrower not later than the following Business Day
after receipt by Borrower, to be applied to the Obligations in such order as
Silicon shall determine; provided that, if no Default or Event of Default has
occurred, Borrower shall not be obligated to remit to Silicon the proceeds of
the sale of worn out or obsolete equipment disposed of by Borrower in good faith
in an arm's length transaction for an aggregate purchase price of $25,000 or
less (for all such transactions in any fiscal year). Borrower agrees that it
will not commingle proceeds of Collateral with any of Borrower's other funds or
property, but will hold such proceeds separate and apart from such other funds
and property and in an express trust for Silicon. Nothing in this Section limits
the restrictions on disposition of Collateral set forth elsewhere in this
Agreement.

   4.6 Disputes. Borrower shall notify Silicon promptly of all disputes or
claims relating to Receivables. Borrower shall not forgive (completely or
partially), compromise or settle any Receivable for less than payment in full,
or agree to do any of the foregoing, except that Borrower may do so, provided
that: (i) Borrower does so in good faith, in a commercially reasonable manner,
in the ordinary course of business, and in arm's length transactions, which are
reported to Silicon on the regular reports provided to Silicon; (ii) no Default
or Event of Default has occurred and is continuing; and (iii) taking into
account all such discounts settlements and forgiveness, the total outstanding
Loans will not exceed the Credit Limit. Silicon may, at any time after the
occurrence of an Event of Default, settle or adjust disputes or claims directly
with Account Debtors for amounts and upon terms which Silicon considers
advisable in its reasonable credit judgment and, in all cases, Silicon shall
credit Borrower's Loan account with only the net amounts received by Silicon in
payment of any Receivables.

   4.7 Returns. Provided no Event of Default has occurred and is continuing, if
any Account Debtor returns any Inventory to Borrower in the ordinary course of
its business, Borrower shall promptly determine the reason for such return and
promptly issue a credit memorandum to the Account Debtor in the appropriate
amount (sending a copy to Silicon). In the event any attempted return occurs
after the occurrence, and during the continuance, of any Event of Default,
Borrower shall (i) hold the returned Inventory in trust for Silicon, (ii)
segregate all returned Inventory from all of Borrower's other property, (iii)
conspicuously label the returned Inventory as Silicon's property, and (iv)
immediately notify Silicon of the return of any Inventory, specifying the reason
for such return, the location and condition of the returned Inventory, and on
Silicon's request deliver such returned Inventory to Silicon.

   4.8 Verification. Silicon may, from time to time, verify directly with the
respective Account Debtors the validity, amount and other matters relating to
the Receivables, by means of mail, telephone or otherwise, either in the name of
Borrower or Silicon or such other name as Silicon may choose.

   4.9 No Liability. Silicon shall not under any circumstances be responsible or
liable for any shortage or discrepancy in, damage to, or loss or destruction of,
any goods, the sale or other disposition of which gives rise to a Receivable, or
for any error, act, omission, or delay of any kind occurring in the settlement,
failure to settle, collection or failure to collect any Receivable, or for
settling any Receivable in good faith for less than the full amount thereof, nor
shall Silicon be deemed to be responsible for any of Borrower's obligations
under any contract or agreement giving rise to a Receivable. Nothing herein
shall, however, relieve Silicon from liability for its own gross negligence or
willful misconduct.

5. ADDITIONAL DUTIES OF THE BORROWER.

   5.1  Financial and Other Covenants. Borrower shall at all times comply with
the financial and other covenants set forth in the Schedule.

   5.2 Insurance. Borrower shall, at all times insure all of the tangible
personal property Collateral and carry such other business insurance, with
insurers reasonably acceptable to Silicon, in such form and amounts as Silicon
may reasonably require, and Borrower shall provide evidence of such insurance to
Silicon, so that Silicon is satisfied that such insurance is, at all times, in
full force and effect. All such insurance policies shall name Silicon as an
additional loss payee, and shall contain a lenders loss payee endorsement in
form reasonably acceptable to Silicon and Borrower shall provide evidence of
such endorsement to Silicon as soon as possible after the date hereof but in no
event later than 30 days after the date hereof. Upon receipt of the proceeds of
any such insurance, Silicon shall apply such proceeds in reduction of the
Obligations as Silicon shall determine in its sole discretion, except that,
provided no

                                      -4-
<PAGE>

          Silicon Valley Bank                       Loan and Security Agreement
          ----------------------------------------------------------------------

Default or Event of Default has occurred and is continuing, Silicon shall
release to Borrower insurance proceeds with respect to Equipment totaling less
than $100,000, which shall be utilized by Borrower for the replacement of the
Equipment with respect to which the insurance proceeds were paid. Silicon may
require reasonable assurance that the insurance proceeds so released will be so
used. If Borrower fails to provide or pay for any insurance, Silicon may, but is
not obligated to, obtain the same at Borrower's expense. Borrower shall promptly
deliver to Silicon copies of all reports made to insurance companies.


   5.3 Reports. Borrower, at its expense, shall provide Silicon with the written
reports set forth in the Schedule, and such other written reports with respect
to Borrower (including budgets, sales projections, operating plans and other
financial documentation), as Silicon shall from time to time reasonably specify.

   5.4 Access to Collateral, Books and Records. At reasonable times, and on one
Business Day's notice, Silicon, or its agents, shall have the right to inspect
the Collateral, and the right to audit and copy Borrower's books and records.
Silicon shall take reasonable steps to keep confidential all information
obtained in any such inspection or audit, but Silicon shall have the right to
disclose any such information to its auditors, regulatory agencies, and
attorneys, and pursuant to any subpoena or other legal process. The foregoing
inspections and audits shall be at Borrower's expense and the charge therefor
shall be $600 per person per day (or such higher amount as shall represent
Silicon's then current standard charge for the same), plus reasonable out of
pocket expenses. Except with respect to a duplicate, back-up set of Borrower's
books and records, Borrower will not enter into any agreement with any
accounting firm, service bureau or third party to store Borrower's books or
records at any location other than Borrower's Address, without first obtaining
Silicon's written consent, which may be conditioned upon such accounting firm,
service bureau or other third party agreeing to give Silicon the same rights
with respect to access to books and records and related rights as Silicon has
under this Loan Agreement. Borrower waives the benefit of any accountant-client
privilege or other evidentiary privilege precluding or limiting the disclosure,
divulgence or delivery of any of its books and records (except that Borrower
does not waive any attorney-client privilege).

   5.5 Negative Covenants. Except as may be permitted in the Schedule, Borrower
shall not, without Silicon's prior written consent, do any of the following: (i)
merge or consolidate with another corporation or entity; (ii) acquire any
assets, except in the ordinary course of business; (iii) enter into any other
transaction outside the ordinary course of business; (iv) sell or transfer any
Collateral, except for the sale of finished Inventory in the ordinary course of
Borrower's business, and except for the sale of obsolete or unneeded Equipment
in the ordinary course of business and except for the sale or transfer of other
Collateral with a value of less than $50,000 (with an aggregate amount of such
sales or transfers of other Collateral during the term of this Agreement not to
exceed $100,000); (v) store any Inventory or other Collateral with any
warehouseman or other third party; (vi) sell any Inventory on a sale-or-return,
guaranteed sale, consignment, or other contingent basis; (vii) make any loans of
any money or other assets; (viii) incur any debts, outside the ordinary course
of business, which would have a material, adverse effect on Borrower or on the
prospect of repayment of the Obligations; (ix) guarantee or otherwise become
liable with respect to the obligations of another party or entity; (x) pay or
declare any dividends on Borrower's stock (except for dividends payable solely
in stock of Borrower); (xi) redeem, retire, purchase or otherwise acquire,
directly or indirectly, any of Borrower's stock; (xii) make any change in
Borrower's capital structure which would have a material adverse effect on
Borrower or on the prospect of repayment of the Obligations; (xiv) dissolve
or elect to dissolve. Transactions permitted by the foregoing provisions of this
Section are only permitted if no Default or Event of Default would occur as a
result of such transaction.

   5.6 Litigation Cooperation. Should any third-party suit or proceeding be
instituted by or against Silicon with respect to any Collateral or in any manner
relating to Borrower, Borrower shall, without expense to Silicon, make available
Borrower and its officers, employees and agents and Borrower's books and
records, to the extent that Silicon may deem them reasonably necessary in order
to prosecute or defend any such suit or proceeding.

   5.7 Further Assurances. Borrower agrees, at its expense, on request by
Silicon, to execute all documents and take all actions, as Silicon, may deem
reasonably necessary or useful in order to perfect and maintain Silicon's
perfected security interest in the Collateral, and in order to fully consummate
the transactions contemplated by this Agreement.

6.   TERM.

   6.1  Maturity Date. This Agreement shall continue in effect until the
maturity date set forth on the Schedule (the "Maturity Date"), subject to
Sections 6.2 and 6.3 below.

                                      -5-
<PAGE>

     Silicon Valley Bank                             Loan and Security Agreement
     ---------------------------------------------------------------------------


   6.2   Early Termination. This Agreement may be terminated prior to the
Maturity Date as follows: (i) by Borrower, effective three Business Days after
written notice of termination is given to Silicon; or (ii) by Silicon at any
time after the occurrence of an Event of Default, without notice, effective
immediately. If this Agreement is terminated by Borrower or by Silicon under
this Section 6.2, Borrower shall pay to Silicon a termination fee in an amount
equal to $15,000, provided that no termination fee shall be charged if the
credit facility hereunder is replaced with a new facility from another division
of Silicon Valley Bank. The termination fee shall be due and payable on the
effective date of termination and thereafter shall bear interest at a rate equal
to the highest rate applicable to any of the Obligations.

   6.3   Payment of Obligations. On the Maturity Date or on any earlier
effective date of termination, Borrower shall pay and perform in full all
Obligations, whether evidenced by installment notes or otherwise, and whether or
not all or any part of such Obligations are otherwise then due and payable.
Without limiting the generality of the foregoing, if on the Maturity Date, or on
any earlier effective date of termination, there are any outstanding Letters of
Credit issued by Silicon or issued by another institution based upon an
application, guarantee, indemnity or similar agreement on the part of Silicon,
then on such date Borrower shall provide to Silicon cash collateral in an amount
equal to the face amount of all such Letters of Credit plus all interest, fees
and cost due or to become due in connection therewith, to secure all of the
Obligations relating to said Letters of Credit, pursuant to Silicon's then
standard form cash pledge agreement. Notwithstanding any termination of this
Agreement, all of Silicon's security interests in all of the Collateral and all
of the terms and provisions of this Agreement shall continue in full force and
effect until all Obligations have been paid and performed in full; provided
that, without limiting the fact that Loans are subject to the discretion of
Silicon, Silicon may, in its sole discretion, refuse to make any further Loans
after termination. No termination shall in any way affect or impair any right or
remedy of Silicon, nor shall any such termination relieve Borrower of any
Obligation to Silicon, until all of the Obligations have been paid and performed
in full. Upon payment and performance in full of all the Obligations and
termination of this Agreement, Silicon shall promptly deliver to Borrower
termination statements, requests for reconveyances and such other documents as
may be required to fully terminate Silicon's security interests as well as
release to the Borrower all remaining CD Security, if any.

7.  EVENTS OF DEFAULT AND REMEDIES.

   7.1   Events of Default. The occurrence of any of the following events shall
constitute an "Event of Default" under this Agreement, and Borrower shall give
Silicon immediate written notice thereof: (a) Any warranty, representation,
statement, report or certificate made or delivered to Silicon by Borrower or any
of Borrower's officers, employees or agents, now or in the future, shall be
untrue or misleading in a material respect; or (b) Borrower shall fail to pay
when due any Loan or any interest thereon or any other monetary Obligation; or
(c) the total Loans and other Obligations outstanding at any time shall exceed
the Credit Limit and the same has not been repaid by Borrower in accordance with
Section 1.3 hereof; or (d) Borrower shall fail to comply with any of the
financial covenants set forth in the Schedule or shall fail to perform any other
non-monetary Obligation which by its nature cannot be cured; or (e) Borrower
shall fail to perform any other non-monetary Obligation, which failure is not
cured within 10 business Days after the date due; or (f) any levy, assessment,
attachment, seizure, lien or encumbrance (other than a Permitted Lien) is made
on all or any part of the Collateral which is not cured within 10 days after the
occurrence of the same; or (g) any default or event of default occurs under any
obligation secured by a Permitted Lien, which is not cured within any applicable
cure period or waived in writing by the holder of the Permitted Lien; or (h)
Borrower breaches any material contract or obligation which remains uncured
beyond any applicable cure periods, which has or may reasonably be expected to
have a material adverse effect on Borrower's business or financial condition; or
(i) Dissolution, termination of existence, insolvency or business failure of
Borrower; or appointment of a receiver, trustee or custodian, for all or any
part of the property of, assignment for the benefit of creditors by, or the
commencement of any proceeding by Borrower under any reorganization, bankruptcy,
insolvency, arrangement, readjustment of debt, dissolution or liquidation law or
statute of any jurisdiction, now or in the future in effect; or (j) the
commencement of any proceeding against Borrower or any guarantor of any of the
Obligations under any reorganization, bankruptcy, insolvency, arrangement,
readjustment of debt, dissolution or liquidation law or statute of any
jurisdiction, now or in the future in effect, which is not cured by the
dismissal thereof within 60 days after the date commenced; or (k) revocation or
termination of, or limitation or denial of liability upon, any guaranty of the
Obligations or any attempt to do any of the foregoing, or commencement of
proceedings by any guarantor of any of the Obligations under any bankruptcy or
insolvency law; or (l) revocation or termination of, or limitation or denial of
liability upon, any pledge of any certificate of deposit, securities or other
property or asset of any kind pledged by any third party to secure any or all of
the Obligations, or any attempt to do any of the foregoing, or commencement of
proceedings by or against any such third party under any bankruptcy or
insolvency law; or (m) Borrower makes any payment on account of any indebtedness
or obligation which has been subordinated to the Obligations other than as
permitted in the applicable subordination agreement, or if any Person who has
subordinated such indebtedness or obligations terminates or in any way limits
his subordination agreement;

                                      -6-
<PAGE>

     Silicon Valley Bank                             Loan and Security Agreement
     ---------------------------------------------------------------------------


or (o) Borrower shall generally not pay its debts as they become due, or
Borrower shall conceal, remove or transfer any part of its property, with intent
to hinder, delay or defraud its creditors, or make or suffer any transfer of any
of its property which may be fraudulent under any bankruptcy, fraudulent
conveyance or similar law; or (p) there shall be a material adverse change in
Borrower's business or financial condition; Silicon may cease making any Loans
hereunder during any of the above cure periods, and thereafter if an Event of
Default has occurred.

   7.2   Remedies. Upon the occurrence of any Event of Default, and at any time
thereafter, Silicon, at its option, and without notice or demand of any kind
(all of which are hereby expressly waived by Borrower), may do any one or more
of the following: (a) Cease making Loans or otherwise extending credit to
Borrower under this Agreement or any other document or agreement; (b) Accelerate
and declare all or any part of the Obligations to be immediately due, payable,
and performable, notwithstanding any deferred or installment payments allowed by
any instrument evidencing or relating to any Obligation; (c) Take possession of
any or all of the Collateral wherever it may be found, and for that purpose
Borrower hereby authorizes Silicon without judicial process to enter onto any of
Borrower's premises without interference to search for, take possession of,
keep, store, or remove any of the Collateral, and remain on the premises or
cause a custodian to remain on the premises in exclusive control thereof,
without charge for so long as Silicon deems it reasonably necessary in order to
complete the enforcement of its rights under this Agreement or any other
agreement; provided, however, that should Silicon seek to take possession of any
of the Collateral by Court process, Borrower hereby irrevocably waives: (i) any
bond and any surety or security relating thereto required by any statute, court
rule or otherwise as an incident to such possession; (ii) any demand for
possession prior to the commencement of any suit or action to recover possession
thereof; and (iii) any requirement that Silicon retain possession of, and not
dispose of, any such Collateral until after trial or final judgment; (d) Require
Borrower to assemble any or all of the Collateral and make it available to
Silicon at places designated by Silicon which are reasonably convenient to
Silicon and Borrower, and to remove the Collateral to such locations as Silicon
may deem advisable; (e) Complete the processing, manufacturing or repair of any
Collateral prior to a disposition thereof and, for such purpose and for the
purpose of removal, Silicon shall have the right to use Borrower's premises,
vehicles, hoists, lifts, cranes, equipment and all other property without
charge; (f) Sell, lease or otherwise dispose of any of the Collateral, in its
condition at the time Silicon obtains possession of it or after further
manufacturing, processing or repair, at one or more public and/or private sales,
in lots or in bulk, for cash, exchange or other property, or on credit, and to
adjourn any such sale from time to time without notice other than oral
announcement at the time scheduled for sale. Silicon shall have the right to
conduct such disposition on Borrower's premises without charge, for such time or
times as Silicon deems reasonable, or on Silicon's premises, or elsewhere and
the Collateral need not be located at the place of disposition. Silicon may
directly or through any affiliated company purchase or lease any Collateral at
any such public disposition, and if permissible under applicable law, at any
private disposition. Any sale or other disposition of Collateral shall not
relieve Borrower of any liability Borrower may have if any Collateral is
defective as to title or physical condition or otherwise at the time of sale;
(g) Demand payment of, and collect any Receivables and General Intangibles
comprising Collateral and, in connection therewith, Borrower irrevocably
authorizes Silicon to endorse or sign Borrower's name on all collections,
receipts, instruments and other documents, to take possession of and open mail
addressed to Borrower and remove therefrom payments made with respect to any
item of the Collateral or proceeds thereof, and, in Silicon's sole discretion,
to grant extensions of time to pay, compromise claims and settle Receivables and
the like for less than face value; (h) Offset against any sums in any of
Borrower's general, special or other Deposit Accounts with Silicon; and (i)
Demand and receive possession of any of Borrower's federal and state income tax
returns and the books and records utilized in the preparation thereof or
referring thereto. All reasonable attorneys' fees, expenses, costs, liabilities
and obligations incurred by Silicon with respect to the foregoing shall be added
to and become part of the Obligations, shall be due on demand, and shall bear
interest at a rate equal to the highest interest rate applicable to any of the
Obligations. Without limiting any of Silicon's rights and remedies, from and
after the occurrence of any Event of Default, the interest rate applicable to
the Obligations shall be increased by an additional four percent per annum.

   7.3   Standards for Determining Commercial Reasonableness. Borrower and
Silicon agree that a sale or other disposition (collectively, "sale") of any
Collateral which complies with the following standards

                                      -7-
<PAGE>

     Silicon Valley Bank                             Loan and Security Agreement
     ---------------------------------------------------------------------------


will conclusively be deemed to be commercially reasonable: (i) Notice of the
sale is given to Borrower at least seven days prior to the sale, and, in the
case of a public sale, notice of the sale is published at least seven days
before the sale in a newspaper of general circulation in the county where the
sale is to be conducted; (ii) Notice of the sale describes the collateral in
general, non-specific terms; (iii) The sale is conducted at a place designated
by Silicon, with or without the Collateral being present; (iv) The sale
commences at any time between 8:00 a.m. and 6:00 p.m; (v) Payment of the
purchase price in cash or by cashier's check or wire transfer is required; (vi)
With respect to any sale of any of the Collateral, Silicon may (but is not
obligated to) direct any prospective purchaser to ascertain directly from
Borrower any and all information concerning the same. Silicon shall be free to
employ other methods of noticing and selling the Collateral, in its discretion,
if they are commercially reasonable.

   7.4   Power of Attorney. During the continuance of any Event of Default,
without limiting Silicon's other rights and remedies, Borrower grants to Silicon
an irrevocable power of attorney coupled with an interest, authorizing and
permitting Silicon (acting through any of its employees, attorneys or agents) at
any time, at its option, but without obligation, with or without notice to
Borrower, and at Borrower's expense, to do any or all of the following, in
Borrower's name or otherwise, but Silicon agrees to exercise the following
powers in a commercially reasonable manner: (a) Execute on behalf of Borrower
any documents that Silicon may, in its sole discretion, deem advisable in order
to perfect and maintain Silicon's security interest in the Collateral, or in
order to exercise a right of Borrower or Silicon, or in order to fully
consummate all the transactions contemplated under this Agreement, and all other
present and future agreements; (b) Execute on behalf of Borrower any document
exercising, transferring or assigning any option to purchase, sell or otherwise
dispose of or to lease (as lessor or lessee) any real or personal property which
is part of Silicon's Collateral or in which Silicon has an interest; (c) Execute
on behalf of Borrower, any invoices relating to any Receivable, any draft
against any Account Debtor and any notice to any Account Debtor, any proof of
claim in bankruptcy, any Notice of Lien, claim of mechanic's, materialman's or
other lien, or assignment or satisfaction of mechanic's, materialman's or other
lien; (d) Take control in any manner of any cash or non-cash items of payment or
proceeds of Collateral; endorse the name of Borrower upon any instruments, or
documents, evidence of payment or Collateral that may come into Silicon's
possession; (e) Endorse all checks and other forms of remittances received by
Silicon; (f) Pay, contest or settle any lien, charge, encumbrance, security
interest and adverse claim in or to any of the Collateral, or any judgment based
thereon, or otherwise take any action to terminate or discharge the same; (g)
Grant extensions of time to pay, compromise claims and settle Receivables and
General Intangibles for less than face value and execute all releases and other
documents in connection therewith; (h) Pay any sums required on account of
Borrower's taxes or to secure the release of any liens therefor, or both; (i)
Settle and adjust, and give releases of, any insurance claim that relates to any
of the Collateral and obtain payment therefor; (j) Instruct any third party
having custody or control of any books or records belonging to, or relating to,
Borrower to give Silicon the same rights of access and other rights with respect
thereto as Silicon has under this Agreement; and (k) Take any action or pay any
sum required of Borrower pursuant to this Agreement and any other present or
future agreements. Any and all reasonable sums paid and any and all reasonable
costs, expenses, liabilities, obligations and attorneys' fees incurred by
Silicon with respect to the foregoing shall be added to and become part of the
Obligations, shall be payable on demand, and shall bear interest at a rate equal
to the highest interest rate applicable to any of the Obligations. In no event
shall Silicon's rights under the foregoing power of attorney or any of Silicon's
other rights under this Agreement be deemed to indicate that Silicon is in
control of the business, management or properties of Borrower.

   7.5   Application of Proceeds. All proceeds realized as the result of any
sale of the Collateral shall be applied by Silicon first to the reasonable
costs, expenses, liabilities, obligations and attorneys' fees incurred by
Silicon in the exercise of its rights under this Agreement, second to the
interest due upon any of the Obligations, and third to the principal of the
Obligations, in such order as Silicon shall determine in its sole discretion.
Any surplus shall be paid to Borrower or other persons legally entitled thereto;
Borrower shall remain liable to Silicon for any deficiency. If, Silicon, in its
sole discretion, directly or indirectly enters into a deferred payment or other
credit transaction with any purchaser at any sale of Collateral, Silicon shall
have the option, exercisable at any time, in its sole discretion, of either
reducing the Obligations by the principal amount of purchase price or deferring
the reduction of the Obligations until the actual receipt by Silicon of the cash
therefor.

   7.6   Remedies Cumulative. In addition to the rights and remedies set forth
in this Agreement, Silicon shall have all the other rights and remedies accorded
a secured party under the California Uniform Commercial Code and under all other
applicable laws, and under any other instrument or agreement now or in the
future entered into between Silicon and Borrower, and all of such rights and
remedies are cumulative and none is exclusive. Exercise or partial exercise by
Silicon of one or more of its rights or remedies shall not be deemed an
election, nor bar Silicon from subsequent exercise or partial exercise of any
other rights or remedies. The failure or delay of Silicon to exercise any rights
or remedies shall not operate as a waiver thereof, but all rights and remedies
shall continue in full force and effect until all of the Obligations have been
fully paid and performed.

                                      -8-
<PAGE>

     Silicon Valley Bank                             Loan and Security Agreement
     ---------------------------------------------------------------------------


8.   DEFINITIONS. As used in this Agreement, the following terms have the
following meanings:

   "Account Debtor" means the obligor on a Receivable.
    --------------

   "Affiliate" means, with respect to any Person, a relative, partner,
    ---------
shareholder, director, officer, or employee of such Person, or any parent or
subsidiary of such Person, or any Person controlling, controlled by or under
common control with such Person.

   "Business Day" means a day on which Silicon is open for business.
    ------------

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

   "Collateral" has the meaning set forth in Section 2.1 above.
    ----------

   "Default" means any event which with notice or passage of time or both, would
    -------
constitute an Event of Default.

   "Deposit Account" has the meaning set forth in Section 9105 of the Code.
    ---------------

   "Eligible Inventory"  [Not Applicable]
    ------------------

   "Eligible Receivables" means Receivables arising in the ordinary course of
    --------------------
Borrower's business from the sale of goods or rendition of services, which
Silicon, in its good-faith business judgment, shall deem eligible for borrowing,
based on such considerations as Silicon may from time to time deem appropriate.
Without limiting the fact that the determination of which Receivables are
eligible for borrowing is a matter of Silicon's good-faith business judgment,
the following (the "Minimum Eligibility Requirements") are the minimum
                    --------------------------------
requirements for a Receivable to be an Eligible Receivable: (i) the Receivable
must not be outstanding for more than 90 days from its invoice date, (ii) the
Receivable must not represent progress billings, or be due under a fulfillment
or requirements contract with the Account Debtor, (iii) the Receivable must not
be subject to any contingencies (including Receivables arising from sales on
consignment, guaranteed sale or other terms pursuant to which payment by the
Account Debtor may be conditional), (iv) the Receivable must not be owing from
an Account Debtor with whom the Borrower has any dispute (whether or not
relating to the particular Receivable), (v) the Receivable must not be owing
from an Affiliate of Borrower, (vi) the Receivable must not be owing from an
Account Debtor which is subject to any insolvency or bankruptcy proceeding, or
whose financial condition is not acceptable to Silicon, or which, fails or goes
out of a material portion of its business, (vii) the Receivable must not be
owing from the United States or any department, agency or instrumentality
thereof (unless there has been compliance, to Silicon's satisfaction, with the
United States Assignment of Claims Act), (viii) the Receivable must not be owing
from an Account Debtor located outside the United States or Canada (unless pre-
approved by Silicon in its discretion in writing, or backed by a letter of
credit satisfactory to Silicon, or FCIA insured satisfactory to Silicon), (ix)
the Receivable must not be owing from an Account Debtor to whom Borrower is or
may be liable for goods purchased from such Account Debtor or otherwise.
Receivables owing from one Account Debtor will not be deemed Eligible
Receivables to the extent they exceed 25% of the total Receivables outstanding.
In addition, if more than 50% of the Receivables owing from an Account Debtor
are outstanding more than 90 days from their invoice date (without regard to
unapplied credits) or are otherwise not eligible Receivables, then all
Receivables owing from that Account Debtor will be deemed ineligible for
borrowing. Silicon may, from time to time, in its good-faith business judgment,
revise the Minimum Eligibility Requirements, upon written notice to the
Borrower.

   "Equipment" means all of Borrower's present and hereafter acquired machinery,
    ---------
molds, machine tools, motors, furniture, equipment, furnishings, fixtures, trade
fixtures, motor vehicles, tools, parts, dyes, jigs, goods and other tangible
personal property (other than Inventory) of every kind and description used in
Borrower's operations or owned by Borrower and any interest in any of the
foregoing, and all attachments, accessories, accessions, replacements,
substitutions, additions or improvements to any of the foregoing, wherever
located.

   "Event of Default" means any of the events set forth in Section 7.1 of this
    ----------------
Agreement.

   "General Intangibles" means all general intangibles of Borrower, whether now
    -------------------
owned or hereafter created or acquired by Borrower, including, without
limitation, all choses in action, causes of action, corporate or other business
records, Deposit Accounts, inventions, designs, drawings, blueprints, patents,
patent applications, trademarks and the goodwill of the business symbolized
thereby, names, trade names, trade secrets, goodwill, copyrights, registrations,
licenses, franchises, customer lists, security and other deposits, rights in all
litigation presently or hereafter pending for any cause or claim (whether in
contract, tort or otherwise), and all judgments now or hereafter arising
therefrom, all claims of Borrower against Silicon, rights to purchase or sell
real or personal property, rights as a licensor or licensee of any kind,
royalties, telephone numbers, proprietary information, purchase orders, and all
insurance policies and claims (including without limitation life insurance, key
man insurance, credit insurance, liability insurance, property insurance and
other insurance), tax refunds and claims, computer programs, discs, tapes and
tape files, claims under guaranties, security interests or other security held
by or granted to Borrower, all rights to indemnification and all other
intangible property of every kind and nature (other than Receivables).

   "Inventory" means all of Borrower's now owned and hereafter acquired goods,
    ---------
merchandise or other personal

                                      -9-
<PAGE>

     Silicon Valley Bank                             Loan and Security Agreement
     ---------------------------------------------------------------------------


property, wherever located, to be furnished under any contract of service or
held for sale or lease (including without limitation all raw materials, work in
process, finished goods and goods in transit), and all materials and supplies of
every kind, nature and description which are or might be used or consumed in
Borrower's business or used in connection with the manufacture, packing,
shipping, advertising, selling or finishing of such goods, merchandise or other
personal property, and all warehouse receipts, documents of title and other
documents representing any of the foregoing.

   "Obligations" means all present and future Loans, advances, debts,
    -----------
liabilities, obligations, guaranties, covenants, duties and indebtedness at any
time owing by Borrower to Silicon, whether evidenced by this Agreement or any
note or other instrument or document, whether arising from an extension of
credit, opening of a letter of credit, banker's acceptance, loan, guaranty,
indemnification or otherwise, whether direct or indirect (including, without
limitation, those acquired by assignment and any participation by Silicon in
Borrower's debts owing to others), absolute or contingent, due or to become due,
including, without limitation, all interest, charges, expenses, fees, attorney's
fees, expert witness fees, audit fees, letter of credit fees, collateral
monitoring fees, closing fees, facility fees, termination fees, minimum interest
charges and any other sums chargeable to Borrower under this Agreement or under
any other present or future instrument or agreement between Borrower and
Silicon.

   "Permitted Liens" means the following: (i) purchase money security interests
    ---------------
in specific items of Equipment; (ii) leases of specific items of Equipment;
(iii) liens for taxes not yet payable; (iv) additional security interests and
liens consented to in writing by Silicon, which consent shall not be
unreasonably withheld; (v) security interests being terminated substantially
concurrently with this Agreement; (vi) liens of materialmen, mechanics,
warehousemen, carriers, or other similar liens arising in the ordinary course of
business and securing obligations which are not delinquent; (vii) liens incurred
in connection with the extension, renewal or refinancing of the indebtedness
secured by liens of the type described above in clauses (i) or (ii) above,
provided that any extension, renewal or replacement lien is limited to the
property encumbered by the existing lien and the principal amount of the
indebtedness being extended, renewed or refinanced does not increase; (viii)
Liens in favor of customs and revenue authorities which secure payment of
customs duties in connection with the importation of goods. Silicon will have
the right to require, as a condition to its consent under subparagraph (iv)
above, that the holder of the additional security interest or lien sign an
intercreditor agreement on Silicon's then standard form, acknowledge that the
security interest is subordinate to the security interest in favor of Silicon,
and agree not to take any action to enforce its subordinate security interest so
long as any Obligations remain outstanding, and that Borrower agree that any
uncured default in any obligation secured by the subordinate security interest
shall also constitute an Event of Default under this Agreement.

   "Person" means any individual, sole proprietorship, partnership, joint
    ------
venture, trust, unincorporated organization, association, corporation,
government, or any agency or political division thereof, or any other entity.

   "Receivables" means all of Borrower's now owned and hereafter acquired
    -----------
accounts (whether or not earned by performance), letters of credit, contract
rights, chattel paper, instruments, securities, securities accounts, investment
property, documents and all other forms of obligations at any time owing to
Borrower, all guaranties and other security therefor, all merchandise returned
to or repossessed by Borrower, and all rights of stoppage in transit and all
other rights or remedies of an unpaid vendor, lienor or secured party.

   "Reserves" means, as of any date of determination, such amounts as Silicon
    --------
may from time to time establish and revise in good faith reducing the amount of
Loans, Letters of Credit and other financial accommodations which would
otherwise be available to Borrower under the lending formula(s) provided in the
Schedule: (a) to reflect events, conditions, contingencies or risks which, as
determined by Silicon in good faith, do or may affect (i) the Collateral or any
other property which is security for the Obligations or its value (including
without limitation any increase in delinquencies of Receivables), (ii) the
assets, business or prospects of Borrower or any Guarantor, or (iii) the
security interests and other rights of Silicon in the Collateral (including the
enforceability, perfection and priority thereof); or (b) to reflect Silicon's
good faith belief that any collateral report or financial information furnished
by or on behalf of Borrower or any Guarantor to Silicon is or may have been
incomplete, inaccurate or misleading in any material respect; or (c) in respect
of any state of facts which Silicon determines in good faith constitutes an
Event of Default or may, with notice or passage of time or both, constitute an
Event of Default.

   Other Terms. All accounting terms used in this Agreement, unless otherwise
   -----------
indicated, shall have the meanings given to such terms in accordance with
generally accepted accounting principles, consistently applied. All other terms
contained in this Agreement, unless otherwise indicated, shall have the meanings
provided by the Code, to the extent such terms are defined therein.

9.   GENERAL PROVISIONS.

   9.1   Interest Computation. In computing interest on the Obligations, all
checks, wire transfers and other items of payment received by Silicon (including
proceeds of Receivables and payment of the Obligations in full) shall be deemed
applied by Silicon on account of the Obligations two business Business Days
after receipt by Silicon of immediately available funds, and, for purposes

                                      -10-
<PAGE>

     Silicon Valley Bank                             Loan and Security Agreement
     ---------------------------------------------------------------------------

of the foregoing, any such funds received after 12:00 Noon on any day shall be
deemed received on the next Business Day. Silicon shall not, however, be
required to credit Borrower's account for the amount of any item of payment
which is unsatisfactory to Silicon in its sole discretion, and Silicon may
charge Borrower's loan account for the amount of any item of payment which is
returned to Silicon unpaid.

   9.2  Application of Payments. All payments with respect to the Obligations
may be applied, and in Silicon's sole discretion reversed and re-applied, to the
Obligations, in such order and manner as Silicon shall determine in its sole
discretion.

   9.3  Charges to Accounts. Silicon may, in its good-faith business judgment,
require that Borrower pay monetary Obligations in cash to Silicon, or charge
them to Borrower's Loan account, in which event they will bear interest at the
same rate applicable to the Loans. Silicon may also, in its good-faith business
judgment, charge any monetary Obligations to Borrower's Deposit Accounts
maintained with Silicon.

   9.4  Monthly Accountings. Silicon shall provide Borrower monthly with an
account of advances, charges, expenses and payments made pursuant to this
Agreement. Such account shall be deemed correct, accurate and binding on
Borrower and an account stated (except for reverses and reapplications of
payments made and corrections of errors discovered by Silicon), unless Borrower
notifies Silicon in writing to the contrary within thirty days after each
account is rendered, describing the nature of any alleged errors or admissions.

   9.5  Notices. All notices to be given under this Agreement shall be in
writing and shall be given either personally or by reputable private delivery
service or by regular first-class mail, or certified mail return receipt
requested, or by facsimile addressed to Silicon or Borrower at the addresses
shown in the heading to this Agreement, or at any other address designated in
writing by one party to the other party. Notices to Silicon shall be directed to
the Commercial Finance Division, to the attention of the Division Manager or the
Division Credit Manager. All notices shall be deemed to have been given upon
delivery in the case of notices personally delivered, upon confirmation of
receipt in the case of notices sent via facsimile, or at the expiration of one
Business Day following delivery to the private delivery service, or two Business
Days following the deposit thereof in the United States mail, with postage
prepaid.

   9.6  Severability. Should any provision of this Agreement be held by any
court of competent jurisdiction to be void or unenforceable, such defect shall
not affect the remainder of this Agreement, which shall continue in full force
and effect.

   9.7  Integration. This Agreement and such other written agreements, documents
and instruments as may be executed in connection herewith are the final, entire
and complete agreement between Borrower and Silicon and supersede all prior and
contemporaneous negotiations and oral representations and agreements, all of
which are merged and integrated in this Agreement. There are no oral
                                                   -----------------
understandings, representations or agreements between the parties which are not
-------------------------------------------------------------------------------
set forth in this Agreement or in other written agreements signed by the parties
--------------------------------------------------------------------------------
in connection herewith.
----------------------

   9.8  Waivers. The failure of Silicon at any time or times to require Borrower
to strictly comply with any of the provisions of this Agreement or any other
present or future agreement between Borrower and Silicon shall not waive or
diminish any right of Silicon later to demand and receive strict compliance
therewith. Any waiver of any default shall not waive or affect any other
default, whether prior or subsequent, and whether or not similar. None of the
provisions of this Agreement or any other agreement now or in the future
executed by Borrower and delivered to Silicon shall be deemed to have been
waived by any act or knowledge of Silicon or its agents or employees, but only
by a specific written waiver signed by an authorized officer of Silicon and
delivered to Borrower. Borrower waives demand, protest, notice of protest and
notice of default or dishonor, notice of payment and nonpayment, release,
compromise, settlement, extension or renewal of any commercial paper,
instrument, account, General Intangible, document or guaranty at any time held
by Silicon on which Borrower is or may in any way be liable, and notice of any
action taken by Silicon, unless expressly required by this Agreement.

   9.9  No Liability for Ordinary Negligence. Neither Silicon, nor any of its
directors, officers, employees, agents, attorneys or any other Person affiliated
with or representing Silicon shall be liable for any claims, demands, losses or
damages, of any kind whatsoever, made, claimed, incurred or suffered by Borrower
or any other party through the ordinary negligence of Silicon, or any of its
directors, officers, employees, agents, attorneys or any other Person affiliated
with or representing Silicon, but nothing herein shall relieve Silicon from
liability for its own gross negligence or willful misconduct.

   9.10 Amendment. The terms and provisions of this Agreement may not be waived
or amended, except in a writing executed by Borrower and a duly authorized
officer of Silicon.

   9.11 Time of Essence. Time is of the essence in the performance by Borrower
of each and every obligation under this Agreement.

   9.12 Attorneys Fees and Costs. Borrower shall reimburse Silicon for all
reasonable attorneys' fees and all fil-

                                      -11-
<PAGE>

     Silicon Valley Bank                             Loan and Security Agreement
     ---------------------------------------------------------------------------

ing, recording, search, title insurance, appraisal, audit, and other reasonable
costs incurred by Silicon, pursuant to, or in connection with, or relating to
this Agreement (whether or not a lawsuit is filed), including, but not limited
to, any reasonable attorneys' fees and costs Silicon incurs in order to do the
following: prepare and negotiate this Agreement and the documents relating to
this Agreement; obtain legal advice in connection with this Agreement or
Borrower; enforce, or seek to enforce, any of its rights; prosecute actions
against, or defend actions by, Account Debtors; commence, intervene in, or
defend any action or proceeding; initiate any complaint to be relieved of the
automatic stay in bankruptcy; file or prosecute any probate claim, bankruptcy
claim, third-party claim, or other claim; examine, audit, copy, and inspect any
of the Collateral or any of Borrower's books and records; protect, obtain
possession of, lease, dispose of, or otherwise enforce Silicon's security
interest in, the Collateral; and otherwise represent Silicon in any litigation
relating to Borrower. In satisfying Borrower's obligation hereunder to reimburse
                      ----------------------------------------------------------
Silicon for attorneys fees, Borrower may, for convenience, issue checks directly
--------------------------------------------------------------------------------
to Silicon's attorneys, Levy, Small & Lallas, but Borrower acknowledges and
---------------------------------------------------------------------------
agrees that Levy, Small & Lallas is representing only Silicon and not Borrower
------------------------------------------------------------------------------
in connection with this Agreement. If either Silicon or Borrower files any
---------------------------------
lawsuit against the other predicated on a breach of this Agreement, the
prevailing party in such action shall be entitled to recover its reasonable
costs and attorneys' fees, including (but not limited to) reasonable attorneys'
fees and costs incurred in the enforcement of, execution upon or defense of any
order, decree, award or judgment. All attorneys' fees and costs to which Silicon
may be entitled pursuant to this Paragraph shall immediately become part of
Borrower's Obligations, shall be due on demand, and shall bear interest at a
rate equal to the highest interest rate applicable to any of the Obligations.

   9.13 Benefit of Agreement. The provisions of this Agreement shall be binding
upon and inure to the benefit of the respective successors, assigns, heirs,
beneficiaries and representatives of Borrower and Silicon; provided, however,
that Borrower may not assign or transfer any of its rights under this Agreement
without the prior written consent of Silicon, and any prohibited assignment
shall be void. No consent by Silicon to any assignment shall release Borrower
from its liability for the Obligations.

   9.14 Joint and Several Liability. If Borrower consists of more than one
Person, their liability shall be joint and several, and the compromise of any
claim with, or the release of, any Borrower shall not constitute a compromise
with, or a release of, any other Borrower.

   9.15 Limitation of Actions. Any claim or cause of action by Borrower against
Silicon, its directors, officers, employees, agents, accountants or attorneys,
based upon, arising from, or relating to this Loan Agreement, or any other
present or future document or agreement, or any other transaction contemplated
hereby or thereby or relating hereto or thereto, or any other matter, cause or
thing whatsoever, occurred, done, omitted or suffered to be done by Silicon, its
directors, officers, employees, agents, accountants or attorneys, shall be
barred unless asserted by Borrower by the commencement of an action or
proceeding in a court of competent jurisdiction by the filing of a complaint
within one year after the first act, occurrence or omission upon which such
claim or cause of action, or any part thereof, is based, and the service of a
summons and complaint on an officer of Silicon, or on any other person
authorized to accept service on behalf of Silicon, within thirty (30) days
thereafter. Borrower agrees that such one-year period is a reasonable and
sufficient time for Borrower to investigate and act upon any such claim or cause
of action. The one-year period provided herein shall not be waived, tolled, or
extended except by the written consent of Silicon in its sole discretion. This
provision shall survive any termination of this Loan Agreement or any other
present or future agreement.

   9.16 Paragraph Headings; Construction. Paragraph headings are only used in
this Agreement for convenience. Borrower and Silicon acknowledge that the
headings may not describe completely the subject matter of the applicable
paragraph, and the headings shall not be used in any manner to construe, limit,
define or interpret any term or provision of this Agreement. The term
"including", whenever used in this Agreement, shall mean "including (but not
limited to)". This Agreement has been fully reviewed and negotiated between the
parties and no uncertainty or ambiguity in any term or provision of this
Agreement shall be construed strictly against Silicon or Borrower under any rule
of construction or otherwise.

   9.17 Governing Law; Jurisdiction; Venue. This Agreement and all acts and
transactions hereunder and all rights and obligations of Silicon and Borrower
shall be governed by the laws of the State of California. As a material part of
the consideration to Silicon to enter into this Agreement, Borrower (i) agrees
that all actions and proceedings relating directly or indirectly to this
Agreement shall, at Silicon's option, be litigated in courts located within
California, and that the exclusive venue therefor shall be Santa Clara County;
(ii) consents to the jurisdiction and venue of any such court and consents to
service of process in any such action or proceeding by personal delivery or any
other method permitted by law; and (iii) waives any and all rights Borrower may
have to object to the jurisdiction of any such court, or to transfer or change
the venue of any such action or proceeding.

   9.18 Mutual Waiver of Jury Trial. BORROWER AND SILICON EACH HEREBY WAIVE THE
RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF,
OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE
INSTRUMENT OR AGREEMENT BETWEEN SILICON AND BORROWER, OR ANY

                                      -12-
<PAGE>

     Silicon Valley Bank                             Loan and Security Agreement
     ---------------------------------------------------------------------------

CONDUCT, ACTS OR OMISSIONS OF SILICON OR BORROWER OR ANY OF THEIR DIRECTORS,
OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH
SILICON OR BORROWER, IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT
OR TORT OR OTHERWISE.

   Borrower:

         NETPLEX SYSTEMS, Inc.


                /s/ Peter J. Russo
         By ______________________________
               President or Vice President

   Silicon:

         SILICON VALLEY BANK


                /s/ Milad Hanna
         By ______________________________

                     Vice President
         Title ___________________________


                                      -13-
<PAGE>

        ________________________________________________________________________

Silicon Valley Bank

                                 Schedule to

                          Loan and Security Agreement


Borrower: NetPlex Systems, Inc.
Address:     1800 Robert Fulton Drive, Suite 250
             Reston, Virginia 20191

Date:     July 31, 2000

This Schedule forms an integral part of the Loan and Security Agreement between
Silicon Valley Bank and the above-borrower of even date.

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

1.  Credit Limit
    (Section 1.1):                 An amount not to exceed the lesser of: (i)
                                   $6,000,000 at any one time outstanding (the
                                   "Maximum Credit Limit"); or (ii) 85% of the
                                   amount of Borrower's Eligible Receivables (as
                                   defined in Section 8 above).

                                   Additionally, the Loans, if any, will be
                                   secured by certificates of deposit in an
                                   amount of $2,000,000, on terms and
                                   documentation satisfactory to Silicon in its
                                   good-faith business judgment (the "CD
                                   Security"), which CD Security shall be
                                   established prior to any Loans being made
                                   hereunder. Unless and until an Event of
                                   Default has occurred and is continuing,
                                   interest on the CD Security shall pursuant to
                                   the terms of the CD Security documentation
                                   either accrue for the benefit of the Borrower
                                   or be paid to Borrower.

                                   Notwithstanding the foregoing, until the
                                   following events occur, the Maximum Credit
                                   Limit shall be $5,000,000:

                                        1.   Upon Silicon's receipt of
                                   Borrower's financial statements for the
                                   fiscal quarter ending as of September 30,
                                   2000, if such financial statements show the
                                   Borrower's performance to be within 10% of
                                   its projections dated June 13, 2000
                                   previously provided to Silicon (a copy of
                                   which projections are attached hereto) then
                                   the parties will agree to either:

                                             (a)  Increase the Maximum Credit
                                                  Limit to $6,000,000 and
                                                  release $500,000 of the CD
                                                  Security or

                                             (b)  Maintain the Maximum Credit
                                                  Limit at $5,000,000 and
                                                  release $1,500,000 of the CD
                                                  Security.

                                      -1-
<PAGE>

          Silicon Valley Bank           Schedule to Loan and Security Agreement
     --------------------------------------------------------------------------

                                        2.   Upon the occurrence of an equity
                                   transaction (including without limitation the
                                   issuance of new equity securities of the
                                   Borrower after the date hereof) resulting in
                                   the receipt by The NetPlex Group, Inc. of
                                   cash proceeds of at least $5,000,000, Silicon
                                   will increase the Maximum Credit Limit to
                                   $6,000,000 and release the remaining amount
                                   of the CD Security.

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

2.  Interest.

         Interest Rate (Section 1.2):

                                   A rate equal to the "Prime Rate" in effect
                                   from time to time, plus 1.75% per annum.
                                   provided, however, Silicon will review the
                                   Interest Rate after (i) six months from the
                                   date of this Agreement and (ii) the
                                   completion of an equity transaction
                                   (including without limitation the issuance of
                                   new equity securities of the Borrower after
                                   the date hereof) resulting in the receipt by
                                   The NetPlex Group, Inc. of cash proceeds of
                                   at least $5,000,000. At the time of such
                                   review(s), Silicon will determine, in its
                                   good-faith business judgment, whether the
                                   Interest Rate should be reduced. Interest
                                   shall be calculated on the basis of a 360-day
                                   year for the actual number of days elapsed.
                                   "Prime Rate" means the rate announced from
                                   time to time by Silicon as its "prime rate;"
                                   it is a base rate upon which other rates
                                   charged by Silicon are based, and it is not
                                   necessarily the best rate available at
                                   Silicon. The interest rate applicable to the
                                   Obligations shall change on each date there
                                   is a change in the Prime Rate.

         Minimum Monthly
         Interest (Section 1.2):   Not Applicable.


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

3.  Fees (Section 1.4):

         Loan Fee:                 $60,000, payable as follows: (i) $30,000
                                   payable concurrently herewith; (ii) $15,000
                                   payable at the time the amount of the Maximum
                                   Credit Limit less the CD Security equals at
                                   least $4,500,000 and (iii) $15,000 payable at
                                   the time the amount of the Maximum Credit
                                   Limit less the CD Security equals $6,000,000.

         Collateral Monitoring
         Fee:                      $1,000, per month, payable in arrears
                                   (prorated for any partial month at the
                                   beginning and at termination of this
                                   Agreement).

         Unused Line Fee:          Borrower shall pay Silicon an Unused Line
                                   Fee, in addition to all interest and other
                                   fees payable hereunder. The amount of the
                                   Unused

                                      -2-
<PAGE>

          Silicon Valley Bank           Schedule to Loan and Security Agreement
     --------------------------------------------------------------------------

                                   Line Fee shall be 0.25% per month
                                   multiplied by an amount equal to the Maximum
                                   Credit Limit minus the average daily balance
                                   of the outstanding Loans. The Unused Line Fee
                                   shall be computed and paid monthly, in
                                   arrears (prorated for any partial calendar
                                   month at the beginning and at termination of
                                   this Agreement).

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

4.  Maturity Date
     (Section 6.1):                Two years from the date of this Agreement.

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

5.  Financial Covenants
     (Section 5.1):                Borrower's parent, The NetPlex Group, Inc.,
                                   shall comply with each of the following
                                   covenant(s) on a consolidated basis.
                                   Compliance shall be determined as of the end
                                   of each month, except as otherwise
                                   specifically provided below:

         Minimum Tangible
         Net Worth:                The NetPlex Group, Inc. shall maintain a
                                   Tangible Net Worth of not less than
                                   $4,000,000.

         Definitions.              For purposes of the foregoing financial
                                   covenants, the following term shall have the
                                   following meaning:

                                   "Current assets", "current liabilities" and
                                   "liabilities" shall have the meaning ascribed
                                   thereto by generally accepted accounting
                                   principles.

                                   "Tangible Net Worth" shall mean the excess of
                                   total assets over total liabilities,
                                   determined in accordance with generally
                                   accepted accounting principles, with the
                                   following adjustments:

                                      (A) there shall be excluded from assets:
                                      (i) notes, accounts receivable and other
                                      obligations owing to the Borrower from its
                                      officers or other Affiliates, and (ii) all
                                      assets which would be classified as
                                      intangible assets under generally accepted
                                      accounting principles, including without
                                      limitation goodwill, licenses, patents,
                                      trademarks, trade names, copyrights,
                                      capitalized software and organizational
                                      costs, licenses and franchises.

                                      (B) there shall be excluded from
                                      liabilities: all indebtedness which is
                                      subordinated to the Obligations under a
                                      subordination agreement in form specified
                                      by Silicon or by language in the
                                      instrument evidencing the indebtedness
                                      which is acceptable to Silicon in its
                                      good-faith business judgment.

                                      -3-
<PAGE>

          Silicon Valley Bank           Schedule to Loan and Security Agreement
     --------------------------------------------------------------------------


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

6.  Reporting.
      (Section 5.3):

                                   Borrower shall provide Silicon with the
                                   following:

                                   1.   Monthly Receivable agings, aged by
                                        invoice date, within fifteen days after
                                        the end of each month.

                                   2.   Monthly accounts payable agings, aged by
                                        invoice date, and outstanding or held
                                        check registers, if any, within fifteen
                                        days after the end of each month.

                                   3.   Monthly reconciliations of Receivable
                                        agings (aged by invoice date),
                                        transaction reports, and general ledger,
                                        within fifteen days after the end of
                                        each month.

                                   4.   Monthly perpetual inventory reports for
                                        the Inventory valued on a first-in,
                                        first-out basis at the lower of cost or
                                        market (in accordance with generally
                                        accepted accounting principles) or such
                                        other inventory reports as are
                                        reasonably requested by Silicon, all
                                        within fifteen days after the end of
                                        each month.

                                   5.   Monthly unaudited financial statements,
                                        as soon as available, and in any event
                                        within thirty days after the end of each
                                        month.

                                   6.   Monthly Compliance Certificates, within
                                        thirty days after the end of each month,
                                        in such form as Silicon shall reasonably
                                        specify, signed by the Chief Financial
                                        Officer of Borrower, certifying that as
                                        of the end of such month Borrower was in
                                        full compliance with all of the terms
                                        and conditions of this Agreement, and
                                        setting forth calculations showing
                                        compliance with the financial covenants
                                        set forth in this Agreement and such
                                        other information as Silicon shall
                                        reasonably request, including, without
                                        limitation, a statement that at the end
                                        of such month there were no held checks.

                                   7.   Quarterly unaudited financial
                                        statements, as soon as available, and in
                                        any event within forty-five days after
                                        the end of each fiscal quarter of
                                        Borrower.

                                   8.   Annual operating budgets (including
                                        income statements, balance sheets and
                                        cash flow statements, by month) for the
                                        upcoming fiscal year of Borrower within
                                        thirty days prior to the end of each
                                        fiscal year of Borrower.

                                   9.   Annual financial statements, as soon as
                                        available, and in any event within 120
                                        days following the end of Borrower's
                                        fiscal year, certified by independent
                                        certified public accountants acceptable
                                        to Silicon.

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

7.  Compensation
       (Section 5.5):                   Not Applicable.

                                      -4-
<PAGE>

Silicon Vally Bank                       Schedule to Loan and Security Agreement
--------------------------------------------------------------------------------

<TABLE>
<S>                              <C>
===========================================================================================

8.  BORROWER INFORMATION:

      Prior Names of
      Borrower
      (Section 3.2):             See Representations and Warranties Dated __________, 2000.

      Prior Trade
      Names of Borrower
      (Section 3.2):             See Representations and Warranties Dated __________, 2000.

      Existing Trade
      Names of Borrower
      (Section 3.2):             See Representations and Warranties Dated __________, 2000.

      Other Locations and
      Addresses (Section 3.3):   See Representations and Warranties Dated __________, 2000.

      Material Adverse
      Litigation (Section 3.10): None.

===========================================================================================
</TABLE>

9.  OTHER COVENANTS
     (Section 5.1):              Borrower shall at all times comply with all of
                                 the following additional covenants:

                                 (1)   Banking Relationship. Borrower shall at
                                       all times maintain its primary banking
                                       relationship with Silicon. Borrower shall
                                       transition all of its accounts to Silicon
                                       as soon as possible after the date of
                                       this Agreement.

                                 (2)   Subordination of Inside Debt. All present
                                       and future indebtedness of the Borrower
                                       to its officers, directors and
                                       shareholders ("Inside Debt") shall, at
                                       all times, be subordinated to the
                                       Obligations pursuant to a subordination
                                       agreement on Silicon's standard form.
                                       Borrower represents and warrants that
                                       there is no Inside Debt presently
                                       outstanding, except for the following:
                                       $120,000 loan to Mr. Robert Skelton.
                                       Prior to incurring any Inside Debt in the
                                       future, Borrower shall cause the person
                                       to whom such Inside Debt will be owed to
                                       execute and deliver to Silicon a
                                       subordination agreement on Silicon's
                                       standard form.

                                 (3)   Affiliated Entities.  The Borrower
                                       represents and warrants to Silicon that
                                       the following are affiliated companies of
                                       the Borrower: Onion Peel Solutions, LLC,
                                       The FSS Group, Inc., Dean Liles &
                                       Associates, Technology Development
                                       Systems, Inc. and ABS Acquisition, Inc.
                                       The Borrower covenants and agrees that no
                                       Collateral of Borrower and no proceeds of
                                       any Loans made hereunder shall be
                                       transferred to such affiliates.

                                      -5-
<PAGE>

Silicon Vally Bank                       Schedule to Loan and Security Agreement
--------------------------------------------------------------------------------


                                 (4)   Guaranty.  The Borrower shall cause each
                                       of The NetPlex Group, Inc., America's
                                       Work Exchange, Inc. and Contractors
                                       Resources, Inc. to concurrently execute
                                       and deliver to Silicon for the benefit of
                                       Silicon, on Silicon's standard form, a
                                       Continuing Guaranty with respect to the
                                       Obligations of Borrower to Silicon.
                                       Borrower shall cause such Guaranty to
                                       remain in full force and effect while any
                                       Obligations remain outstanding.

                                 (5)   Security Agreement.  The Borrower shall
                                       cause each of The NetPlex Group, Inc. and
                                       Contractors Resources, Inc. to
                                       concurrently execute and deliver to
                                       Silicon for the benefit of Silicon, on
                                       Silicon's standard form, a Security
                                       Agreement in conjunction with the
                                       Continuing Guarantee described above.
                                       Borrower shall cause such Security
                                       Agreement to remain in full force and
                                       effect while any Obligations remain
                                       outstanding.

                                 (6)   Stock Pledge  Agreement.  The Borrower
                                       shall cause America's Work Exchange, Inc.
                                       to concurrently execute and deliver to
                                       Silicon for the benefit of Silicon, on
                                       Silicon's standard form, a Stock Pledge
                                       Agreement in conjunction with the
                                       Continuing Guarantee described above.
                                       Borrower shall cause such Stock Pledge
                                       Agreement to remain in full force and
                                       effect while any Obligations remain
                                       outstanding.

                                 (7)   Warrants.  The Borrower shall cause The
                                       NetPlex Group, Inc. to provide Silicon
                                       with five-year warrants to purchase
                                       75,000 shares of Common Stock of The
                                       NetPlex Group, Inc. at $6.00 per share,
                                       on the terms and conditions in the
                                       Warrant to Purchase Stock and related
                                       documents being executed concurrently
                                       with this Agreement.



Borrower:                                  Silicon:

  NETPLEX SYSTEMS, INC.                    SILICON VALLEY BANK



        /s/ Peter J. Russo                         Milad Hanna
  By_______________________________        By_______________________________
      President or Vice President          Title   Vice President
                                                ____________________________



                                      -6-
<PAGE>

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

Silicon Valley Bank

Certified Resolution and Incumbency Certificate


Borrower:         NetPlex Systems, Inc.,
                  a corporation organized under the laws
                  of the State of Virginia

Date:      July 31, 2000

I, the undersigned, Secretary or Assistant Secretary of the above-named
borrower, a corporation organized under the laws of the state set forth above,
do hereby certify that the following is a full, true and correct copy of
resolutions duly and regularly adopted by the Board of Directors of said
corporation as required by law, and by the by-laws of said corporation, and that
said resolutions are still in full force and effect and have not been in any way
modified, repealed, rescinded, amended or revoked.

     RESOLVED, that this corporation borrow from Silicon Valley Bank
     ("Silicon"), from time to time, such sum or sums of money as, in the
     judgment of the officer or officers hereinafter authorized hereby, this
     corporation may require.

     RESOLVED FURTHER, that any officer of this corporation be, and he or she is
     hereby authorized, directed and empowered, in the name of this corporation,
     to execute and deliver to Silicon, and Silicon is requested to accept, the
     loan agreements, security agreements, notes, financing statements, and
     other documents and instruments providing for such loans and evidencing
     and/or securing such loans, with interest thereon, and said authorized
     officers are authorized from time to time to execute renewals, extensions
     and/or amendments of said loan agreements, security agreements, and other
     documents and instruments.

     RESOLVED FURTHER, that said authorized officers be and they are hereby
     authorized, directed and empowered, as security for any and all
     indebtedness of this corporation to Silicon, whether arising pursuant to
     this resolution or otherwise, to grant, transfer, pledge, mortgage, assign,
     or otherwise hypothecate to Silicon, or deed in trust for its benefit, any
     property of any and every kind, belonging to this corporation, including,
     but not limited to, any and all real property, accounts, inventory,
     equipment, general intangibles, instruments, documents, chattel paper,
     notes, money, deposit accounts, furniture, fixtures, goods, and other
     property of every kind, and to execute and deliver to Silicon any and all
     grants, transfers, trust receipts, loan or credit agreements, pledge
     agreements, mortgages, deeds of trust, financing statements, security
     agreements and other hypothecation agreements, which said instruments and
     the note or notes and other instruments referred to in the preceding
     paragraph may contain such provisions, covenants, recitals and agreements
     as Silicon may require and said authorized officers may approve, and the
     execution thereof by said authorized officers shall be conclusive evidence
     of such approval.

     RESOLVED FURTHER, that Silicon may conclusively rely upon a certified copy
     of these resolutions and a certificate of the Secretary or Ass't Secretary
     of this corporation as to the officers of this corporation and their
     offices and signatures, and continue to conclusively rely on such certified
     copy of these resolutions and said certificate for all past, present and
     future transactions until written notice of any change hereto or thereto is
     given to Silicon by this corporation by certified mail, return receipt
     requested.

                                      -1-
<PAGE>

Silicon Vally Bank               Certified Resolution and Incumbency Certificate
--------------------------------------------------------------------------------


   The undersigned further hereby certifies that the following persons are the
duly elected and acting officers of the corporation named above as borrower and
that the following are their actual signatures:

<TABLE>
<CAPTION>
   NAMES                                    OFFICE(S)                                   ACTUAL SIGNATURES
   -----                                    ---------                                   -----------------
   <S>                                      <C>                                         <C>
   ______________________________           _________________________________           x___________________________

   ______________________________           _________________________________           x___________________________

   ______________________________           _________________________________           x___________________________

   ______________________________           _________________________________           x___________________________
</TABLE>

   IN WITNESS WHEREOF, I have hereunto set my hand as such Secretary or
Assistant Secretary on the date set forth above.

                             __________________________________________
                                  Secretary or Assistant Secretary

                                      -2-
<PAGE>

Silicon Valley Bank

                          NOTICE OF SECURITY INTEREST

                                 July 31, 2000

Certified Mail, Return Receipt Requested

First Union

_________________________

_________________________

         Re:  NetPlex SYSTEMS, Inc.

Ladies and Gentlemen:

         Notice is hereby given that your above-named customer has granted a
security interest in all of its present and future deposit accounts maintained
with your institution, general and special, and of every other kind, to Silicon
Valley Bank, 3003 Tasman Drive, Santa Clara, California 95054.

         Please contact the undersigned at 408-654-1070, if you have any
questions about this matter.

                                Sincerely yours,

                                Silicon Valley Bank


                                By______________________________
                                Title_______________________

NETPLEX SYSTEMS, Inc.


By______________________________
Title_______________________

                                      -1-
<PAGE>

Silicon Valley Bank

                          NOTICE OF SECURITY INTEREST

                                 July 31, 2000

Certified Mail, Return Receipt Requested

Fleet Bank

_________________________

_________________________

         Re: NETPLEX SYSTEMS, INC.

Ladies and Gentlemen:

         Notice is hereby given that your above-named customer has granted a
security interest in all of its present and future deposit accounts maintained
with your institution, general and special, and of every other kind, to Silicon
Valley Bank, 3003 Tasman Drive, Santa Clara, California 95054.

         Please contact the undersigned at 408-654-1070, if you have any
questions about this matter.

                                Sincerely yours,

                                Silicon Valley Bank


                                By______________________________
                                Title_______________________

NETPLEX SYSTEMS, Inc.


By______________________________
Title_______________________

                                      -1-