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                                    EXHIBIT 10.31






                                  November 13, 1997


Active Voice Corporation
Mr. Jose S. David, CFO
2901 3rd Avenue, #500
Seattle, WA 98121

Dear Mr. David:

     This letter is to confirm that Wells Fargo Bank, National Association
("Bank"), subject to all terms and conditions contained herein, has agreed to
make available to Active Voice Corporation ("Borrower") the following described
credit accommodations (each, a "Credit" and collectively, the "Credits"):

     1.   A revolving line of credit under which Bank will make advances to
Borrower from time to time up to and including November 30, 1998, not to exceed
at any time the maximum principal amount of Ten Million Dollars ($10,000,000.00)
("Line of Credit"), the proceeds of which shall be used working capital
requirements.

     2.   A facility under which Bank will enter into foreign exchange contracts
for the account of Borrower from time to time up to and including November 30,
1998, not to exceed at any time the maximum principal amount of Five Hundred
Thousand United States Dollars (US$500,000.00) ("Foreign Exchange Facility").


I.   CREDIT TERMS:

     1.   LINE OF CREDIT:

     (a)  LINE OF CREDIT NOTE.  Borrower's obligation to repay advances under
the Line of Credit shall be evidenced by a promissory note substantially in the
form of Exhibit A attached hereto ("Line of Credit Note"), all terms of which
are incorporated herein by this reference.

     (b)  BORROWING AND REPAYMENT.  Borrower may from time to time during the
term of the Line of Credit borrow, partially or wholly repay its outstanding
borrowings, and reborrow, subject to all of the limitations, terms and
conditions contained herein or in the Line of Credit Note; provided however,
that the total

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outstanding borrowings under the Line of Credit shall not at any time exceed the
maximum principal amount available thereunder, as set forth above.
Notwithstanding the foregoing, Borrower shall maintain a zero balance on
advances under the Line of Credit for a period of at least 30 consecutive days
during the term of the Line of Credit.

     2.   FOREIGN EXCHANGE FACILITY:

     (a)  FOREIGN EXCHANGE FACILITY.  Bank will enter into foreign exchange
contracts for the account of Borrower under the Foreign Exchange Facility for
the purchase and/or sale by Borrower in United States dollars of foreign
currencies designated by Borrower; provided however, that the aggregate of all
outstanding foreign exchange contracts shall not at any time exceed the maximum
principal amount available under the Foreign Exchange Facility, as set forth
above.  No foreign exchange contract shall be executed for a term which extends
beyond November 30, 1998.  Borrower shall have a "Delivery Limit" under the
Foreign Exchange Facility not to exceed at any time the aggregate principal
amount of Five Hundred Thousand United States Dollars (US$500,000.00), which
Delivery Limit reflects the maximum principal amount of Borrower's foreign
exchange contracts which may mature during any two (2) day period.  All foreign
exchange transactions shall be subject to the additional terms of a Foreign
Exchange Agreement, substantially in the form of Exhibit B attached hereto
("Foreign Exchange Agreement"), all terms of which are incorporated herein by
this reference.

     (b)  SETTLEMENT.  Each foreign exchange contract under the Foreign Exchange
Facility shall be settled on its maturity date by Bank's debit to any demand
deposit account maintained by Borrower with Bank.


II.  INTEREST/FEES:

     1.   INTEREST.  The outstanding principal balance of the Line of Credit
shall bear interest at the rate of interest set forth in the Line of Credit
Note.

     2.   COMPUTATION AND PAYMENT.  Interest shall be computed on the basis of a
360-day year, actual days elapsed.  Interest shall be payable at the times and
place set forth in the Line of Credit Note.

     3.   COMMITMENT FEE.  Borrower shall pay to Bank a non-refundable
commitment fee for the Line of Credit equal to $2,500.00, which fee shall be due
and payable in full upon execution of this letter.

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     4.   UNUSED COMMITMENT FEE.  Borrower shall pay to Bank a fee equal to
nine-hundredth percent (.09%) per annum (computed on the basis of a 360-day
year, actual days elapsed) on the average daily unused amount of the Line of
Credit, which fee shall be calculated on a quarterly basis by Bank and shall be
due and payable by Borrower in arrears within fifteen (15) days after each
billing is sent by Bank.

     5.   COLLECTION OF PAYMENTS.  Borrower authorizes Bank to collect all
interest due under each Credit by charging Borrower's demand deposit account
number 4159-633163 with Bank, or any other demand deposit account maintained by
Borrower with Bank, for the full amount thereof.  Should there be insufficient
funds in any such demand deposit account to pay all such sums when due, the full
amount of such deficiency shall be immediately due and payable by Borrower.


III. REPRESENTATIONS AND WARRANTIES:

     Borrower makes the following representations and warranties to Bank, which
representations and warranties shall survive the execution of this letter and
shall continue in full force and effect until the full and final payment, and
satisfaction and discharge, of all obligations of Borrower to Bank subject to
this letter.

     1.   LEGAL STATUS.  Borrower is a corporation, duly organized and existing
and in good standing under the laws of the state of Washington, and is qualified
or licensed to do business in all jurisdictions in which such qualification or
licensing is required or in which the failure to so qualify or to be so licensed
could have a material adverse effect on Borrower.

     2.   AUTHORIZATION AND VALIDITY.  This letter, the Line of Credit Note, and
each other document, contract or instrument deemed necessary by Bank to evidence
any extension of credit to Borrower pursuant to the terms and conditions hereof,
or now or at any time hereafter required by or delivered to Bank in connection
with this letter (collectively, the "Loan Documents") have been duly authorized,
and upon their execution and delivery in accordance with the provisions hereof
will constitute legal, valid and binding agreements and obligations of Borrower
or the party which executes the same, enforceable in accordance with their
respective terms.

3.   NO VIOLATION.  The execution, delivery and performance by Borrower of each
of the Loan Documents do not violate any provision of any law or regulation, or
contravene any provision of the Articles of Incorporation or By-Laws of
Borrower, or

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November 13, 1997
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result in a breach of or constitute a default under any contract, obligation,
indenture or other instrument to which Borrower is a party or by which Borrower
may be bound.

     4.   LITIGATION.  There are no pending, or to the best of Borrower's
knowledge, actions, claims, investigations, suits or proceedings by or before
any governmental authority, arbitrator, court or administrative agency which
could have a MATERIAL ADVERSE effect on the financial condition or operation of
Borrower other than those disclosed by Borrower to Bank in writing prior to the
date hereof.

     5.   CORRECTNESS OF FINANCIAL STATEMENT.  The financial statement of
Borrower dated June 30, 1997, a true copy of which has been delivered by
Borrower to Bank prior to the date hereof, (a) is complete and correct and
presents fairly the financial condition of Borrower, (b) discloses all
liabilities of Borrower that are required to be reflected or reserved against
under generally accepted accounting principles, whether liquidated or
unliquidated, fixed or contingent, and (c) has been prepared in accordance with
generally accepted accounting principles consistently applied.  Since the date
of such financial statement there has been no material adverse change in the
condition or operation of Borrower, nor has Borrower mortgaged, pledged, granted
a security interest in or otherwise encumbered any of its assets or properties
except in favor of Bank or as otherwise permitted by Bank in writing.

     6.   INCOME TAX RETURNS.  Borrower has no knowledge of any pending
assessments or adjustments of its income tax payable with respect to any year,
except for March 31, 1994 pending assessment of $300,000.00 which Borrower
disclosed to Bank.

     7.   NO SUBORDINATION.  There is no agreement, indenture, contract or
instrument to which Borrower is a party or by which Borrower may be bound that
requires the subordination in right of payment of any of Borrower's obligations
subject to this letter to any other obligation of Borrower.

     8.   PERMITS, FRANCHISES.  Borrower possesses, and will hereafter possess,
all material permits, consents, approvals, franchises and licenses required and
all rights to trademarks, trade names, patents and fictitious names, if any,
necessary to enable it to conduct the business in which it is now engaged in
compliance with applicable law.

     9.   ERISA.  Borrower is in compliance in all material respects with all
applicable provisions of the Employee Retirement Income Security Act of 1974, as
amended or recodified from time to time ("ERISA"); Borrower has not violated any


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November 13, 1997
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provision of any defined employee pension benefit plan (as defined in ERISA)
maintained or contributed to by Borrower (each, a "Plan"); no Reportable Event,
as defined in ERISA, has occurred and is continuing with respect to any Plan
initiated by Borrower; Borrower has met its minimum funding requirements under
ERISA with respect to each Plan; and each Plan will be able to fulfill its
benefit obligations as they come due in accordance with the Plan documents and
under generally accepted accounting principles.

     10.  OTHER OBLIGATIONS.  Borrower is not in default on any obligation for
borrowed money, any purchase money obligation or any other material lease,
commitment, contract, instrument or obligation.

     11.  ENVIRONMENTAL MATTERS.  Except as disclosed by Borrower to Bank in
writing prior to the date hereof, Borrower is in compliance in all material
respects with all applicable federal or state environmental, hazardous waste,
health and safety statutes, and any rules or regulations adopted pursuant
thereto, which govern or affect any of Borrower's operations and/or properties,
including without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, the Superfund Amendments and
Reauthorization Act of 1986, the Federal Resource Conservation and Recovery Act
of 1976, and the Federal Toxic Substances Control Act, as any of the same may be
amended, modified or supplemented from time to time.  None of the operations of
Borrower is the subject of any federal or state investigation evaluating whether
any remedial action involving a material expenditure is needed to respond to a
release of any toxic or hazardous waste or substance into the environment.
Borrower has no material contingent liability in connection with any release of
any toxic or hazardous waste or substance into the environment.


IV. CONDITIONS:

     1.   CONDITIONS OF INITIAL EXTENSION OF CREDIT.  The obligation of Bank to
grant any of the Credits is subject to fulfillment to Bank's satisfaction of all
of the following conditions:

     (a)  DOCUMENTATION.  Bank shall have received each of the Loan Documents,
duly executed and in form and substance satisfactory to Bank.

     (b)  FINANCIAL CONDITION.  There shall have been no material adverse
change, as determined by Bank, in the financial condition or business of
Borrower, nor any material decline, as determined

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by Bank, in the market value of any collateral required hereunder or a
substantial or material portion of the assets of Borrower.

     2.   CONDITIONS OF EACH EXTENSION OF CREDIT.  The obligation of Bank to
make each extension of credit requested by Borrower hereunder shall be subject
to the fulfillment to Bank's satisfaction of each of the following conditions:

     (a)  COMPLIANCE.  The representations and warranties contained herein and
in each of the other Loan Documents shall be true on and as of the date of the
signing of this letter and on the date of each extension of credit by Bank
pursuant hereto, with the same effect as though such representations and
warranties had been made on and as of each such date, and on each such date, no
default hereunder, and no condition, event or act which with the giving of
notice or the passage of time or both would constitute such a default, shall
have occurred and be continuing or shall exist.

     (b)  DOCUMENTATION.  Bank shall have received all additional documents
which may be required in connection with such extension of credit.


V.   COVENANTS:

     Borrower covenants that so long Bank remains committed to extend credit to
Borrower pursuant hereto, or any liabilities (whether direct or contingent,
liquidated or unliquidated) of Borrower to Bank under any of the Loan Documents
remain outstanding, and until payment in full of all obligations of Borrower
subject hereto, Borrower shall, unless Bank otherwise consents in writing:

     1.   PUNCTUAL PAYMENT.  Punctually pay all principal, interest, fees or
other liabilities due under any of the Loan Documents at the times and place and
in the manner specified therein, and immediately upon demand by Bank, the amount
by which the outstanding principal balance of any of the Credits at any time
exceeds any limitation on borrowings applicable thereto.

     2.   ACCOUNTING RECORDS.  Maintain adequate books and records in accordance
with generally accepted accounting principles consistently applied, and permit
any representative of Bank, at any reasonable time, to inspect, audit and
examine such books and records, to make copies of the same and inspect the
properties of Borrower.

     3.   FINANCIAL STATEMENTS.  Provide to Bank all of the following, in form
and detail satisfactory to Bank:

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November 13, 1997
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     (a)  not later than 120 days after and as of the end of each fiscal year,
an audited financial statement of Borrower, prepared by an independent certified
public accountant acceptable to Bank, to include balance sheet, income
statement, statement of cash flow and all footnotes;

     (b)  not later than 60 days after and as of the end of each quarter, a
quarterly Form 10Q;

     (c)  from time to time such other information as Bank may reasonably
request.

     4.   COMPLIANCE.  Preserve and maintain all licenses, permits, governmental
approvals, rights, privileges and franchises necessary for the conduct of its
business; and comply with the provisions of all documents pursuant to which
Borrower is organized and/or which govern Borrower's continued existence and
with the requirements of all material laws, rules, regulations and orders of a
governmental agency applicable to Borrower and/or its business.

     5.   INSURANCE.  Maintain and keep in force insurance of the types and in
amounts customarily carried in lines of business similar to that of Borrower,
including but not limited to fire, extended coverage, public liability, flood,
property damage and workers' compensation, with all such insurance carried with
companies and in amounts satisfactory to Bank, and deliver to Bank from time to
time at Bank's request schedules setting forth all insurance then in effect.

     6.   FACILITIES.  Keep all properties useful or necessary to Borrower's
business in good repair and condition, and from time to time make necessary
repairs, renewals and replacements thereto so that such properties shall be
fully and efficiently preserved and maintained.

     7.   TAXES AND OTHER LIABILITIES.  Pay and discharge when due any and all
indebtedness, obligations, assessments and taxes, both real or personal,
including without limitation federal and state income taxes and state and local
property taxes and assessments, except (a) such as Borrower may in good faith
contest or as to which a bona fide dispute may arise, and (b) for which Borrower
has made provision, to Bank's satisfaction, for eventual payment thereof in the
event Borrower is obligated to make such payment.

     8.   LITIGATION.  Promptly give notice in writing to Bank of any material
litigation pending against Borrower.

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     9.   FINANCIAL CONDITION.  Maintain Borrower's financial condition as
follows using generally accepted accounting principles consistently applied and
used consistently with prior practices (except to the extent modified by the
definitions herein), with compliance determined commencing with Borrower's
financial statements for the period ending October 31, 1997:

     (a)  Tangible Net Worth not at any time less than $30,000,000.00, with
"Tangible Net Worth" defined as the aggregate of total stockholders' equity plus
subordinated debt less any intangible assets.

     (b)  Total Liabilities divided by Tangible Net Worth not at any time
greater than .75 to 1.0, with "Total Liabilities" defined as the aggregate of
current liabilities and non-current liabilities less subordinated debt, and with
"Tangible Net Worth" as defined above.

     (c)  Quick Ratio not at any time less than 2.0 to 1.0, with "Quick Ratio"
defined as the aggregate of unrestricted cash, unrestricted marketable
securities and receivables convertible into cash divided by total current
liabilities.

     (d)  EBITDA not less than $4,000,000.00 on a four quarter rolling basis,
beginning with quarter ended December 31, 1997, March 31, 1998, June 30, 1998 or
September 30, 1998, with "EBITDA" defined as net profit before tax plus interest
expense (net of capitalized interest expense including adding back non-recurring
charges in any one quarter, due directly to an acquisition), depreciation
expense and amortization expense.

     10.  OTHER INDEBTEDNESS.  Not create, incur, assume or permit to exist any
indebtedness or liabilities resulting from borrowings, loans or advances,
whether secured or unsecured, matured or unmatured, liquidated or unliquidated,
joint or several, except (a) the liabilities of Borrower to Bank, and (b) any
other liabilities of Borrower existing as of, and disclosed to Bank prior to,
the date hereof.

     11.  MERGER, CONSOLIDATION, TRANSFER OF ASSETS.  Not merge into any other
entity; nor make any substantial change in the nature of Borrower's business as
conducted as of the date hereof; nor sell, lease, transfer or otherwise dispose
of all or a substantial or material portion of Borrower's assets except in the
ordinary course of its business.

     12.  GUARANTIES.  Not guarantee or become liable in any way as surety,
endorser (other than as endorser of negotiable instruments for deposit or
collection in the ordinary course of business), accommodation endorser or
otherwise for, nor pledge or


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hypothecate any assets of Borrower as security for, any liabilities or
obligations of any other person or entity, except any of the foregoing in favor
of Bank.

     13.  DIVIDENDS, DISTRIBUTIONS.  Not declare or pay any dividend or
distribution either in cash, stock or any other property on Borrower's stock now
or hereafter outstanding.

     14.  PLEDGE OF ASSETS.  Not mortgage, pledge, grant or permit to exist a
security interest in, or lien upon, all or any portion of Borrower's assets now
owned or hereafter acquired, except any of the foregoing in favor of Bank or
which are existing as of, and disclosed to Bank in writing prior to, the date
hereof.

     15.  LIQUIDITY.  At all times maintain liquid assets (defined as the
aggregate of cash and equivalents including marketable securities, municipal
bonds, commercial paper, Bankers Acceptance, Noveen 7 day floaters, treasury
bills, notes and bonds, government sponsored enterprises and Money Market Mutual
Funds acceptable to Bank) in excess of $6,000,000.00.


VI.  DEFAULT, REMEDIES:

     1.   DEFAULT, REMEDIES.  Upon the violation of any term or condition of any
of the Loan Documents, or upon the occurrence of any default or defined event of
default under any of the Loan Documents: (a) all indebtedness of Borrower under
each of the Loan Documents, any term thereof to the contrary notwithstanding,
shall at Bank's option and without notice become immediately due and payable
without presentment, demand, protest or notice of dishonor, all of which are
expressly waived by Borrower; (b) the obligation, if any, of Bank to extend any
further credit under any of the Loan Documents shall immediately cease and
terminate; and (c) Bank shall have all rights, powers and remedies available
under each of the Loan Documents, or accorded by law, including without
limitation the right to resort to any or all security for any of the Credits and
to exercise any or all of the rights of a beneficiary or secured party pursuant
to applicable law.  All rights, powers and remedies of Bank may be exercised at
any time by Bank and from time to time after the occurrence of any such breach
or default, are cumulative and not exclusive, and shall be in addition to any
other rights, powers or remedies provided by law or equity.

     2.   NO WAIVER.  No delay, failure or discontinuance of Bank in exercising
any right, power or remedy under any of the Loan Documents shall affect or
operate as a waiver of such right, power or remedy; nor shall any single or
partial exercise of any
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such right, power or remedy preclude, waive or otherwise affect any other or
further exercise thereof or the exercise of any other right, power or remedy.
Any waiver, permit, consent or approval of any kind by Bank of any breach of or
default under any of the Loan Documents must be in writing and shall be
effective only to the extent set forth in such writing.


VII. MISCELLANEOUS:

     1.   NOTICES.  All notices, requests and demands which any party is
required or may desire to give to any other party under any provision of this
letter must be in writing delivered to each party at its address first set forth
above, or to such other address as any party may designate by written notice to
all other parties.  Each such notice, request and demand shall be deemed given
or made as follows:  (a) if sent by hand delivery, upon delivery; (b) if sent by
mail, upon the earlier of the date of receipt or three (3) days after deposit in
the U.S. mail, first class and postage prepaid; and (c) if sent by telecopy,
upon receipt.

     2.   COSTS, EXPENSES AND ATTORNEYS' FEES.  Borrower shall pay to Bank
immediately upon demand the full amount of all payments, advances, charges,
costs and expenses, including reasonable attorneys' fees (to include outside
counsel fees and all allocated costs of Bank's in-house counsel), expended or
incurred by Bank in connection with (a) the negotiation and preparation of this
letter and the other Loan Documents to a maximum of $1,500.00, Bank's continued
administration hereof and thereof, and the preparation of amendments and waivers
hereto and thereto, (b) the enforcement of Bank's rights and/or the collection
of any amounts which become due to Bank under any of the Loan Documents, and
(c) the prosecution or defense of any action in any way related to any of the
Loan Documents, including without limitation, any action for declaratory relief,
whether incurred at the trial or appellate level, in an arbitration proceeding
or otherwise, and including any of the foregoing incurred in connection with any
bankruptcy proceeding (including without limitation, any adversary proceeding,
contested matter or motion brought by Bank or any other person) relating to any
Borrower or any other person or entity.

     3.   SUCCESSORS, ASSIGNMENT.  This letter shall be binding upon and inure
to the benefit of the heirs, executors, administrators, legal representatives,
successors and assigns of the parties; provided however, that Borrower may not
assign or transfer its interest hereunder without Bank's prior written consent.
Bank reserves the right to sell, assign, transfer, negotiate or grant
participations in all or any part of, or any

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Page 11


interest in, Bank's rights and benefits under each of the Loan Documents.  In
connection therewith Bank may disclose all documents and information which Bank
now has or hereafter may acquire relating to any of the Credits, Borrower or its
business, or any collateral required hereunder.

     4.   ENTIRE AGREEMENT; AMENDMENT.  This letter and the other Loan Documents
constitute the entire agreement between Borrower and Bank with respect to the
Credits and supersede all prior negotiations, communications, discussions and
correspondence concerning the subject matter hereof.  This letter may be amended
or modified only in writing signed by each party hereto.

     5.   NO THIRD PARTY BENEFICIARIES.  This letter is made and entered into
for the sole protection and benefit of the parties hereto and their respective
permitted successors and assigns, and no other person or entity shall be a third
party beneficiary of, or have any direct or indirect cause of action or claim in
connection with, this letter or any other of the Loan Documents to which it is
not a party.

     6.   SEVERABILITY OF PROVISIONS.  If any provision of this letter shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or any remaining provisions of this
letter.

     7.   GOVERNING LAW.  This letter shall be governed by and construed in
accordance with the laws of the State of Washington.

     8.  ARBITRATION.

     (a)  ARBITRATION.  Upon the demand of any party, any Dispute shall be
resolved by binding arbitration (except as set forth in (e) below) in accordance
with the terms of this letter.  A "Dispute" shall mean any action, dispute,
claim or controversy of any kind, whether in contract or tort, statutory or
common law, legal or equitable, now existing or hereafter arising under or in
connection with, or in any way pertaining to, any of the Loan Documents, or any
past, present or future extensions of credit and other activities, transactions
or obligations of any kind related directly or indirectly to any of the Loan
Documents, including without limitation, any of the foregoing arising in
connection with the exercise of any self-help, ancillary or other remedies
pursuant to any of the Loan Documents.  Any party may by summary proceedings
bring an action in court to compel arbitration of a Dispute.  Any party who
fails or refuses to submit to arbitration following a lawful demand by any other
party shall bear all costs and expenses incurred by such other party in
compelling arbitration of any Dispute.

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     (b)  GOVERNING RULES.  Arbitration proceedings shall be administered by the
American Arbitration Association ("AAA") or such other administrator as the
parties shall mutually agree upon in accordance with the AAA Commercial
Arbitration Rules.  All Disputes submitted to arbitration shall be resolved in
accordance with the Federal Arbitration Act (Title 9 of the United States Code),
notwithstanding any conflicting choice of law provision in any of the Loan
Documents.  The arbitration shall be conducted at a location in Seattle,
Washington selected by the AAA or other administrator.  If there is any
inconsistency between the terms hereof and any such rules, the terms and
procedures set forth herein shall control.  All statutes of limitation
applicable to any Dispute shall apply to any arbitration proceeding.  All
discovery activities shall be expressly limited to matters directly relevant to
the Dispute being arbitrated.  Judgment upon any award rendered in an
arbitration may be entered in any court having jurisdiction; provided however,
that nothing contained herein shall be deemed to be a waiver by any party that
is a bank of the protections afforded to it under 12 U.S.C. Section 91 or any
similar applicable state law.

     (c)   NO WAIVER; PROVISIONAL REMEDIES, SELF-HELP AND FORECLOSURE.  No
provision hereof shall limit the right of any party to exercise self-help
remedies such as setoff, foreclosure against or sale of any real or personal
property collateral or security, or to obtain provisional or ancillary remedies,
including without limitation injunctive relief, sequestration, attachment,
garnishment or the appointment of a receiver, from a court of competent
jurisdiction before, after or during the pendency of any arbitration or other
proceeding.  The exercise of any such remedy shall not waive the right of any
party to compel arbitration hereunder.

     (d)  ARBITRATOR QUALIFICATIONS AND POWERS; AWARDS.  Arbitrators must be
active members of the Washington State Bar or retired judges of the state or
federal judiciary of Washington, with expertise in the substantive law
applicable to the subject matter of the Dispute.  Arbitrators are empowered to
resolve Disputes by summary rulings in response to motions filed prior to the
final arbitration hearing.  Arbitrators (i) shall resolve all Disputes in
accordance with the substantive law of the state of Washington, (ii) may grant
any remedy or relief that a court of the state of Washington could order or
grant within the scope hereof and such ancillary relief as is necessary to make
effective any award, and (iii) shall have the power to award recovery of all
costs and fees, to impose sanctions and to take such other actions as they deem
necessary to the same extent a judge could pursuant to the Federal Rules of
Civil Procedure, the Washington Rules of Civil Procedure or other applicable
law.  Any Dispute in which the amount in controversy is $5,000,000 or less

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Page 13


shall be decided by a single arbitrator who shall not render an award of greater
than $5,000,000 (including damages, costs, fees and expenses).  By submission to
a single arbitrator, each party expressly waives any right or claim to recover
more than $5,000,000.  Any Dispute in which the amount in controversy exceeds
$5,000,000 shall be decided by majority vote of a panel of three arbitrators;
provided however, that all three arbitrators must actively participate in all
hearings and deliberations.

     (e)  JUDICIAL REVIEW.  Notwithstanding anything herein to the contrary, in
any arbitration in which the amount in controversy exceeds $25,000,000, the
arbitrators shall be required to make specific, written findings of fact and
conclusions of law.  In such arbitrations (i) the arbitrators shall not have the
power to make any award which is not supported by substantial evidence or which
is based on legal error, (ii) an award shall not be binding upon the parties
unless the findings of fact are supported by substantial evidence and the
conclusions of law are not erroneous under the substantive law of the state of
Washington, and (iii) the parties shall have in addition to the grounds referred
to in the Federal Arbitration Act for vacating, modifying or correcting an award
the right to judicial review of (A) whether the findings of fact rendered by the
arbitrators are supported by substantial evidence, and (B) whether the
conclusions of law are erroneous under the substantive law of the state of
Washington.  Judgment confirming an award in such a proceeding may be entered
only if a court determines the award is supported by substantial evidence and
not based on legal error under the substantive law of the state of Washington.

     (f)  MISCELLANEOUS.  To the maximum extent practicable, the AAA, the
arbitrators and the parties shall take all action required to conclude any
arbitration proceeding within 180 days of the filing of the Dispute with the
AAA.  No arbitrator or other party to an arbitration proceeding may disclose the
existence, content or results thereof, except for disclosures of information by
a party required in the ordinary course of its business, by applicable law or
regulation, or to the extent necessary to exercise any judicial review rights
set forth herein.  If more than one agreement for arbitration by or between the
parties potentially applies to a Dispute, the arbitration provision most
directly related to the Loan Documents or the subject matter of the Dispute
shall control.  This arbitration provision shall survive termination, amendment
or expiration of any of the Loan Documents or any relationship between the
parties.

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Active Voice Corporation
November 13, 1997
Page 14


ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR
ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

     Your acknowledgment of this letter shall constitute acceptance of the
foregoing terms and conditions.  Bank's commitment to extend any credit to
Borrower pursuant to the terms of this letter shall terminate on November 30,
1997, unless this letter is acknowledged by Borrower and returned to Bank on or
before that date.

                                Sincerely,

                                WELLS FARGO BANK,
                                  NATIONAL ASSOCIATION

                                By: /s/ Gregory L. Milner, V.P.
                                    --------------------------------------
                                       Greg Milner
                                       Vice President

Acknowledged and accepted as of December 15, 1997:
                                ------------------

ACTIVE VOICE CORPORATION

By: /s/ Jose S. David
    ---------------------------

Title:    CFO
       ------------------------


<PAGE>


                                 November 13, 1997


Active Voice Corporation
Mr. Jose S. David, CFO
2901 3rd Avenue, #500
Seattle, WA 98121

Dear Mr. David:

     It is anticipated that from time to time your company (the "Customer") and
Wells Fargo Bank, National Association ("Bank"), at the request of Customer, may
enter into foreign exchange contracts for either spot or future delivery of
foreign currencies and/or for options to purchase or sell (I.E., trade) foreign
currencies.  This letter sets forth the terms and conditions governing such
transactions as follows:

     1.   CONFIRMATIONS.  Bank will send Customer a confirmation of each
transaction duly requested by Customer and agreed to by Bank.  Upon Customer's
receipt of each such confirmation, Customer shall promptly sign and return a
copy of such confirmation to Bank; provided however, that Customer's failure
either to sign or to return any confirmation shall not release Customer from any
of its obligations or liabilities hereunder or with respect to the foreign
exchange transaction described therein.

     2.   PERFORMANCE.  Should Customer fail fully to perform its obligations
under any foreign exchange contract entered into by Bank with or for the benefit
of Customer as set forth herein on the due date thereof, or to perform any of
Customer's obligations hereunder, or should Customer breach any representation
or warranty made by Customer to Bank herein, without limiting Bank's rights and
remedies under applicable law:  (a) Bank may, in its sole discretion, cancel any
foreign exchange contracts then existing for the benefit of Customer; (b)
Customer shall indemnify Bank for, and defend and hold Bank harmless from and
against, any and all damages, costs, expenses and losses that may arise from any
such failure or breach, and/or from the exercise of Bank's rights as aforesaid,
including without limitation, all losses resulting from the liquidation of
Bank's positions in the relevant currencies, and all reasonable legal fees (to
include outside counsel fees and all allocated costs of Bank's in-house counsel)
incurred by Bank in pursuance of its rights hereunder; and (c) Bank may set off
and apply against Customer's liability

<PAGE>

Active Voice Corporation
November 13, 1997
Page 2



to Bank any deposits or any other liability to Customer, irrespective of the due
date or nature thereof, notwithstanding that such set off may give rise to
penalties for early withdrawal of funds.

     3.   CANCELLATION.  Bank shall evaluate any request for a trade hereunder
individually, and may, in its sole discretion, refuse to enter into or perform
any proposed foreign exchange contract, without prejudice to entering into or
performing any other foreign exchange contract with or for the benefit of
Customer.  In the event that (a) Customer shall request that Bank cancel or
extend the term of a foreign exchange contract, and (b) Bank, in its sole
discretion, shall agree to such request, Customer shall forthwith reimburse Bank
for any and all damages, costs, expenses and losses that may arise as a result
thereof, including without limitation, all losses resulting from the liquidation
of Bank's position in the relevant currency.

     4.   WARRANTIES.  Each request by Customer that Bank enter into a foreign
exchange contract with or for the benefit of Customer shall be deemed a
representation and warranty by Customer that such transaction is in conformity
with all applicable laws and regulations.  Bank is not an investment advisor,
and Bank expressly disclaims all investment advice with respect to any
transaction ordered by Customer pursuant hereto.  Customer agrees to take the
sole risk of any and all market fluctuations in any currency traded pursuant to
the terms hereof.

     5.   LIABILITY.  Bank shall not be liable for any losses or damages in
consequence of any present or future laws, regulations or other directives of
any government or of any other event or circumstances beyond Bank's control, or
due to any other actions performed by Bank pursuant to the terms hereof, all
such risks being expressly assumed by Customer, except for the gross negligence
or willful misconduct of Bank.  In no event shall Bank be responsible or liable
for any consequential damages resulting from its actions pursuant to this
agreement.  The provisions of this paragraph 5 shall survive any termination
hereof.

     6.   TERM.  The agreements set forth in this letter may be terminated in
writing by either party, at which point the obligations of the parties hereto
shall end, except for closing out existing foreign exchange contracts and except
as otherwise set forth herein.

     7.   SUCCESSORS AND ASSIGNS.  This letter shall be binding upon and inure
to the benefit of the respective heirs, legal representatives, successors and
assigns of the parties; provided

<PAGE>

Active Voice Corporation
November 13, 1997
Page 3


however, that Customer may not assign or otherwise transfer any of its rights or
obligations hereunder or under any foreign exchange contract subject hereto
without Bank's prior written consent.

     8.   GOVERNING LAW.  This letter and all foreign exchange contracts subject
hereto shall be governed by and construed in accordance with the laws of the
State of Washington.

ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR
ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

     Please indicate your acceptance of the terms and conditions contained
herein by signing and dating the enclosed copy of this letter and returning it
to Bank at the above address.


                                Very truly yours,

                                WELLS FARGO BANK,
                                 NATIONAL ASSOCIATION


                                By: /s/ Greg L. Milner, V.P.
                                    ------------------------------
                                       Greg Milner
                                       Vice President


Agreed and accepted as of December 15, 1997:
                          -----------------------

ACTIVE VOICE CORPORATION

By: Jose S. David
    ------------------

Title: CFO
      ----------------

<PAGE>


WELLS FARGO BANK                             REVOLVING LINE OF CREDIT NOTE
--------------------------------------------------------------------------------

$10,000,000.00                                         SEATTLE, WASHINGTON
                                                        NOVEMBER 13, 1997

  FOR VALUE RECEIVED, the undersigned ACTIVE VOICE CORPORATION ("Borrower")
promises to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION ("Bank")
at its office at PUGET SOUND RCBO, 999 THIRD AVENUE 11TH FL, SEATTLE, WA 98104,
or at such other place as the holder hereof may designate, in lawful money of
the United States of America and in immediately available funds, the principal
sum of $10,000,000.00, or so much thereof as may be advanced and be outstanding,
with interest thereon, to be computed on each advance from the date of its
disbursement as set forth herein.

DEFINITIONS:

  As used herein, the following terms shall have the meanings set forth after
each, and any other term defined in this Note shall have the meaning set forth
at the place defined:

  (a)     "Business Day" means any day except a Saturday, Sunday or any other
day on which commercial banks in Washington are authorized or required by law to
close.

  (b)     "Fixed Rate Term" means a period commencing on a Business Day and
continuing for 1, 2, 3 OR 6 MONTHS, as designated by Borrower, during which all
or a portion of the outstanding principal balance of this Note bears interest
determined in relation to LIBOR; provided however, that no Fixed Rate Term may
be selected for a principal amount less than $500,000.00; and provided further,
that no Fixed Rate Term shall extend beyond the scheduled maturity date hereof.
If any Fixed Rate Term would end on a day which is not a Business Day, then such
Fixed Rate Term shall be extended to the next succeeding Business Day.

  (c)     "LIBOR" means the rate per annum (rounded upward, if necessary, to the
nearest whole 1/8 of 1%) determined by dividing Base LIBOR by a percentage equal
to 100% less any LIBOR Reserve Percentage.

    (i) "Base LIBOR" means the rate per annum for United States dollar deposits
quoted by Bank as the Inter-Bank Market Offered Rate, with the understanding
that such rate is quoted by Bank for the purpose of calculating effective rates
of interest for loans making reference thereto, on the first day of a Fixed Rate
Term for delivery of funds on said date for a period of time approximately equal
to the number of days in such Fixed Rate Term and in an amount approximately
equal to the principal amount to which such Fixed Rate Term applies. Borrower
understands and agrees that Bank may base its quotation of the Inter-Bank Market
Offered Rate upon such offers or other market indicators of the Inter-Bank
Market as Bank in its discretion deems appropriate including, but not limited
to, the rate offered for U.S. dollar deposits on the London Inter-Bank Market.

    (ii) "LIBOR Reserve Percentage" means the reserve percentage prescribed by
the Board of Governors of the Federal Reserve System (or any successor) for
"Eurocurrency Liabilities" (as defined in Regulation D of the Federal Reserve
Board, as amended), adjusted by Bank for expected changes in such reserve
percentage during the applicable Fixed Rate Term.

  (d)     "Prime Rate" means at any time the rate of interest most recently
announced within Bank at its principal office as its Prime Rate, with the
understanding that the Prime Rate is one of Bank's base rates and serves as the
basis upon which effective rates of interest are calculated for those loans
making reference thereto, and is evidenced by the recording thereof after its
announcement in such internal publication or publications as Bank may designate.

INTEREST:

  (a)     INTEREST. The outstanding principal balance of this Note shall bear
interest (computed on the basis of a 360-day year, actual days elapsed) either
(i) at a fluctuating rate per annum .25000% below the Prime Rate in effect from
time to time, or (ii) at a fixed rate per annum determined by Bank to be
1.50000% above LIBOR in effect on the first day of the applicable Fixed Rate
Term. When interest is determined in relation to the Prime Rate, each change in
the rate of interest hereunder shall become effective on the date each Prime
Rate change is announced within Bank. With respect to each LIBOR selection
option selected hereunder, Bank is hereby authorized to note the date, principal
amount, interest rate and Fixed Rate Term applicable thereto and any payments
made thereon on Bank's books and records (either manually or by electronic entry
and/or on any schedule attached to this Note, which notations shall be prima
facie evidence of the accuracy of the information noted.

  (b)     SELECTION OF INTEREST RATE OPTIONS. At any time any portion of this
Note bears interest determined in relation to LIBOR, it may be continued by
Borrower at the end of the Fixed Rate Term applicable thereto so that all or a
portion thereof bears interest determined in relation to the Prime Rate or to
LIBOR for a new Fixed Rate Term designated by Borrower. At any time any portion
of this Note bears interest determined in relation to the Prime Rate, Borrower
may convert all or a portion thereof so that it bears interest determined in
relation to LIBOR for a Fixed Rate Term designated by Borrower. At such time as
Borrower requests an advance hereunder or wishes to select a LIBOR option for
all or a portion of the outstanding principal balance hereof, and at the end of
each Fixed Rate Term, Borrower shall give Bank notice specifying: (i) the
interest rate option selected by Borrower; (ii) the


PAGE 1


<PAGE>

principal amount subject thereto; and (iii) for each LIBOR selection, the length
of the applicable Fixed Rate Term. Any such notice may be given by telephone so
long as, with respect to each LIBOR selection, (A) Bank receives written
confirmation from Borrower not later than 3 Business Days after such telephone
notice is given, and (B) such notice is given to Bank prior to 10:00 a.m.,
California time, on the first day of the Fixed Rate Term. For each LIBOR option
requested hereunder, Bank will quote the applicable fixed rate to Borrower at
approximately 10:00 a.m., California time, on the first day of the Fixed Rate
Term. If Borrower does not immediately accept the rate quoted by Bank, any
subsequent acceptance by Borrower shall be subject to a redetermination by Bank
of the applicable fixed rate; provided however, that if Borrower fails to accept
any such rate by 11:00 a.m., California time, on the Business Day such quotation
is given, then the quoted rate shall expire and Bank shall have no obligation to
permit a LIBOR option to be selected on such day. If no specific designation of
interest is made at the time any advance is requested hereunder or at the end of
any Fixed Rate Term, Borrower shall be deemed to have made a Prime Rate interest
selection for such advance or the principal amount to which such Fixed Rate Term
applied.

  (c)     ADDITIONAL LIBOR PROVISIONS.

    (i) If Bank at any time shall determine that for any reason adequate and
reasonable means do not exist for ascertaining LIBOR, then Bank shall promptly
give notice thereof to Borrower. If such notice is given and until such notice
has been withdrawn by Bank, then (A) no new LIBOR option may be selected by
Borrower, and (B) any portion of the outstanding principal balance hereof which
bears interest determined in relation to LIBOR, subsequent to the end of the
Fixed Rate Term applicable thereto, shall bear interest determined in relation
to the Prime Rate.

    (ii) If any law, treaty, rule, regulation or determination of a court or
governmental authority or any change therein or in the interpretation or
application thereof (each, a "Change in Law") shall make it unlawful for Bank
(A) to make LIBOR options available hereunder, or (B) to maintain interest rates
based on LIBOR, then in the former event, any obligation of Bank to make
available such unlawful LIBOR options shall immediately be cancelled, and in the
latter event, any such unlawful LlBOR-based interest rates then outstanding
shall be converted, at Bank's option, so that interest on the portion of the
outstanding principal balance subject thereto is determined in relation to the
Prime Rate; provided however, that if any such Change in Law shall permit any
LlBOR-based interest rates to remain in effect until the expiration of the Fixed
Rate Term applicable thereto, then such permitted LlBOR-based interest rates
shall continue in effect until the expiration of such Fixed Rate Term. Upon the
occurrence of any of the foregoing events, Borrower shall pay to Bank
immediately upon demand such amounts as may be necessary to compensate Bank for
any fines, fees, charges, penalties or other costs incurred or payable by Bank
as a result thereof and which are attributable to any LIBOR options made
available to Borrower hereunder, and any reasonable allocation made by Bank
among its operations shall be conclusive and binding upon Borrower.

    (iii) If any Change in Law or compliance by Bank with any request or
directive (whether or not having the force of law) from any central bank or
other governmental authority shall:

     (A)  subject Bank to any tax, duty or other charge with respect to any
          LIBOR options, or change the basis of taxation of payments to Bank of
          principal, interest, fees or any other amount payable hereunder
          (except for changes in the rate of tax on the overall net income of
          Bank); or

     (B)  impose, modify or hold applicable any reserve, special deposit,
          compulsory loan or similar requirement against assets held by,
          deposits or other liabilities in or for the account of, advances or
          loans by, or any other acquisition of funds by any office of Bank; or

     (C)  impose on Bank any other condition;

and the result of any of the foregoing is to increase the cost to Bank of
making, renewing or maintaining any LIBOR options hereunder and/or to reduce any
amount receivable by Bank in connection therewith, then in any such case,
Borrower shall pay to Bank immediately upon demand such amounts as may be
necessary to compensate Bank for any additional costs incurred by Bank and/or
reductions in amounts received by Bank which are attributable to such LIBOR
options. In determining which costs incurred by Bank and/or reductions in
amounts received by Bank are attributable to any LIBOR options made available to
Borrower hereunder, any reasonable allocation made by Bank among its operations
shall be conclusive and binding upon Borrower.

  (d)     PAYMENT OF INTEREST. Interest accrued on this Note shall be payable on
the LAST day of each MONTH commencing NOVEMBER 30, 1997.

  (e)     DEFAULT INTEREST. From and after the maturity date of this Note, or
such earlier date as all principal owing hereunder becomes due and payable by
acceleration or otherwise, the outstanding principal balance of this Note shall
bear interest until paid in full at an increased rate per annum (computed on the
basis of a 360-day year, actual days elapsed) equal to 4% above the rate of
interest from time to time applicable to this Note.

BORROWING AND REPAYMENT:

  (a)     BORROWINQ AND REPAYMENT. Borrower may from time to time during the
term of this Note borrow, partially or wholly repay its outstanding borrowings,
and reborrow, subject to all of the limitations, terms and conditions of this
Note and of any document executed in connection with or governing this Note;
provided however, that the total outstanding borrowings under this Note shall
not at any time exceed the principal amount stated above. The unpaid principal
balance of this obligation at any time shall be the total amounts advanced
hereunder by the holder hereof less the amount of principal payments made hereon
by or for any Borrower, which balance may be endorsed hereon


PAGE 2

<PAGE>


from time to time by the holder. The outstanding principal balance of this Note
shall be due and payable in full on NOVEMBER 30, 1998.

  (b)     ADVANCES. Advances hereunder, to the total amount of the principal sum
available hereunder, may be made by the holder at the oral or written request of
     (i)  _____________________________________________________________________,
___________________________________________any one acting alone, who are
authorized to request advances and direct the disposition of any advances until
written notice of the revocation of such authority is received by the holder at
the office designated above, or (ii) any person, with respect to advances
deposited to the credit of any account of any Borrower with the holder, which
advances, when so deposited, shall be conclusively presumed to have been made to
or for the benefit of each Borrower regardless of the fact that persons other
than those authorized to request advances may have authority to draw against
such account. The holder shall have no obligation to determine whether any
person requesting an advance is or has been authorized by any Borrower.

  (c)     APPLICATION OF PAYMENTS. Each payment made on this Note shall be
credited first, to any interest then due and second, to the outstanding
principal balance hereof. All payments credited to principal shall be applied
first, to the outstanding principal balance of this Note which bears interest
determined in relation to the Prime Rate, if any, and second, to the outstanding
principal balance of this Note which bears interest determined in relation to
LIBOR, with such payments applied to the oldest Fixed Rate Term first.

PREPAYMENT:

  (a)     PRIME RATE. Borrower may prepay principal on any portion of this Note
which bears interest determined in relation to the Prime Rate at any time, in
any amount and without penalty.

  (b)     LIBOR. Borrower may prepay principal on any portion of this Note which
bears interest determined in relation to LIBOR at any time and in the minimum
amount of $500,000.00; provided however, that if the outstanding principal
balance of such portion of this Note is less than said amount, the minimum
prepayment amount shall be the entire outstanding principal balance thereof. In
consideration of Bank providing this prepayment option to Borrower, or if any
such portion of this Note shall become due and payable at any time prior to the
last day of the Fixed Rate Term applicable thereto by acceleration or otherwise,
Borrower shall pay to Bank immediately upon demand a fee which is the sum of the
discounted monthly differences for each month from the month of prepayment
through the month in which such Fixed Rate Term matures, calculated as follows
for each such month:

   (i)  DETERMINE the amount of interest which would have accrued each month on
the amount prepaid at the interest rate applicable to such amount had it
remained outstanding until the last day of the Fixed Rate Terrn applicable
thereto.

   (ii) SUBTRACT from the amount determined in (i) above the amount of interest
which would have accrued for the same month on the amount prepaid for the
remaining term of such Fixed Rate Term at LIBOR in effect on the date of
prepayment for new loans made for such term and in a principal amount equal to
the amount prepaid.

   (iii)  If the result obtained in (ii) for any month is greater than zero,
discount that difference by LIBOR used in (ii) above.

Each Borrower acknowledges that prepayment of such amount may result in Bank
incurring additional costs, expenses and/or liabilities, and that it is
difficult to ascertain the full extent of such costs, expenses and/or
liabilities. Each Borrower, therefore, agrees to pay the above-described
prepayment fee and agrees that said amount represents a reasonable estimate of
the prepayment costs, expenses and/or liabilities of Bank. If Borrower fails to
pay any prepayment fee when due, the amount of such prepayment fee shall
thereafter bear interest until paid at a rate per annum 2.000% above the Prime
Rate in effect from time to time (computed on the basis of a 360-day year,
actual days elapsed). Each change in the rate of interest on any such past due
prepayment fee shall become effective on the date each Prime Rate change is
announced within Bank.

EVENTS OF DEFAULT:

   The occurrence of any of the following shall constitute an "Event of Default"
under this Note:

  (a)     The failure to pay any principal, interest, fees or other charges when
due hereunder or under an contract, instrument or document executed in
connection with this Note.

  (b) The filing of a petition by or against any Borrower, any guarantor of this
Note or any general partner or joint venturer in any Borrower which is a
partnership or a joint venture (with each such guarantor, general partner and/or
joint venturer referred to herein as a "Third Party Obligor") under any
provisions of the Bankruptcy Reform Act, Title 11 of the United States Code, as
amended or recodified from time to time, or under any similar or other law
relating to bankruptcy, insolvency, reorganization or other relief for debtors;
the appointment of a receiver, trustee, custodian or liquidator of or for any
part of the assets or property of any Borrower or Third Party Obligor; any
Borrower or Third Party Obligor becomes insolvent, makes a general assignment
for the benefit of creditors or is generally not paying its debts as they become
due; or any attachment or like levy on any property of any Borrower or Third
Party Obligor.

  (c)     The death or incapacity of any individual Borrower or Third Party
Obligor, or the dissolution or liquidation of any Borrower or Third Party
Obligor which is a corporation, partnership, joint venture or other type of
entity.

PAGE 3

<PAGE>

  (d)   Any default in the payment or performance of any obligation, or any
defined event of default, under any provisions of any contract, instrument or
document pursuant to which any Borrower or Third Party Obligor has incurred any
obligation for borrowed money, any purchase obligation, or any other liability
of any kind to any person or entity, including the holder.

  (e)   Any financial statement provided by Borrower or Third Party Obligor to
Bank proves to incorrect, false or misleading in any material respect.

  (f)   Any sale or transfer of all or a substantial or material part of the
assets of any Borrower or Third Party Obligor other than in the ordinary course
of its business.

  (g)   Any violation or breach of any provision of, or any defined event of
default under, any addendum to this Note or any loan agreement, guaranty,
security agreement, deed of trust, mortgage or other document executed in
connection with or securing this Note.

MISCELLANEOUS:

  (a)   Remedies.  Upon the occurrence of any Event of Default, the holder of
this Note, at the holder's option, may declare all sums of principal and
interest outstanding hereunder to be immediately due and payable without
presentment, demand, notice of nonperformance, notice of protest, protest or
notice of dishonor, all of which are expressly waived by each Borrower, and the
obligation, if any, of the holder to extend any further credit hereunder shall
immediately cease and terminate.  Each Borrower shall pay to the holder
immediately upon demand the full amount of all payments, advances, charges,
costs and expenses, including reasonable attorneys' fees (to include outside
counsel fees and all allocated costs of the holder's in-house counsel), expended
or incurred by the holder in connection with the enforcement of the holder's
rights and/or the collection of any amounts which become due to the holder under
this Note, and the prosecution or defense of any action in any way related to
this Note, including without limitation, any action for declaratory relief,
whether incurred at the trial or appellate level, in an arbitration proceeding
or otherwise, and including any of the foregoing incurred in connection with any
bankruptcy proceeding (including without limitation, any adversary proceeding,
contested matter or motion brought by Bank or any other person) relating to any
Borrower or any other person or entity.

  (b)   OBIGATIONS JOINT AND SEVERAL.  Should more than one person or entity
sign this Note as a Borrower, the obligations of each such Borrower shall be
joint and several.

  (c)   GOVERNING LAW.  This Note shall be governed by and construed in
accordance with the laws of the state of Washington.

ORAL AGREEMENT OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR
ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

   IN WITNESS WHEREOF, the undersigned has executed this Note as of the date
first written above.


ACTIVE VOICE CORPORATION

By:  Jose S. David
     --------------------------

Title:    CFO
       ------------------------


PAGE 4

<PAGE>

WELLS FARGO BANK                             CORPORATE RESOLUTION: BORROWING
--------------------------------------------------------------------------------

TO: WELLS FARGO BANK, NATIONAL ASSOCIATION

  RESOLVED: That this corporation, ACTIVE VOICE CORPORATION, proposes to obtain
credit from time to time, or has obtained credit, from Wells Fargo Bank,
National Association ("Bank").

  BE IT FURTHER RESOLVED, that any ONE of the following officers:

  CHIEF EXECUTIVE OFFICER/CHAIRMAN OF THE BOARD, CHIEF FINANCIAL OFFICER, OR
PRESIDENT/CHIEF OPERATING OFFICER

  together with any ONE of the following officers:

  NONE

of this corporation be and they are hereby authorized and empowered for and on
behalf of and in the name of this corporation and as its corporate act and deed:

  (a) To borrow money from Bank and to assume any liabilities of any other
person or entity to Bank, in such form and on such terms and conditions as shall
be agreed upon by those authorized above and Bank, and to sign and deliver to
Bank such promissory notes and other evidences of indebtedness for money
borrowed or advanced and/or for indebtedness assumed as Bank shall require; such
promissory notes or other evidences of indebtedness may provide that advances be
requested by telephone communication and by any officer, employee or agent of
this corporation so long as the advances are deposited into any deposit account
of this corporation with Bank; this corporation shall be bound to Bank by, and
Bank may rely upon, any communication or act, including telephone
communications, purporting to be done by any officer, employee or agent of this
corporation provided that Bank believes, in good faith, that the same is done by
such person.

  (b) To contract for the issuance by Bank of letters of credit, to discount
with Bank notes, acceptances and evidences of indebtedness payable to or due
this corporation, to endorse the same and execute such contracts and instruments
for repayment thereof to Bank as Bank shall require, and to enter into foreign
exchange transactions with or through Bank.

     (item c is not part of this Agreement - inked out on original)


  (d) To perform all acts and to execute and deliver all documents described
above and all other contracts and instruments which Bank deems necessary or
convenient to accomplish the purposes of this resolution and/or to perfect or
continue the rights, remedies and security interests to be given to Bank
pursuant hereto, including without limitation, any modifications, renewals
and/or extensions of any of this corporation's obligations to Bank, however
evidenced; provided that the aggregate principal amount of all sums borrowed and
credits established pursuant to this resolution shall not at any time exceed the
sum of $10,000,000.00 outstanding and unpaid.

  Loans made pursuant to a special resolution and loans made by offices of Bank
other than the office to which this resolution is delivered shall be in addition
to foregoing limitation.

  BE IT FURTHER RESOLVED, that the authority hereby conferred is in addition to
that conferred by any other resolution heretofore or hereafter delivered by this
corporation to Bank and shall continue in full force and effect until Bank shall
have received notice in writing, certified by the Secretary of this corporation,
of the revocation hereof by a resolution duly adopted by the Board of Directors
of this corporation. Any such revocation shall be

PAGE 1

<PAGE>

effective only as to credit which is extended or committed by Bank, or actions
which are taken by this corporation pursuant to the resolutions contained
herein, subsequent to Bank's receipt of such notice. The authority hereby
conferred shall be deemed retroactive, and any and all acts authorized herein
which were performed prior to the passage of this resolution are hereby approved
and ratified.

                                    CERTIFICATION

  I, JOSE DAVID , Secretary of ACTIVE VOICE CORPORATION, a corporation created
and existing under the laws of the state of WASHINGTON, do hereby certify and
declare that the foregoing is a full, true and correct copy of the resolutions
duly passed and adopted by the Board of Directors of said corporation, by
written consent of all Directors of said corporation or at a meeting of said
Board duly and regularly called, noticed and held on ________________________,
at which meeting a quorum of the Board of Directors was present and voted in
favor of said resolutions; that said resolutions are now in full force and
effect; that there is no provision in the Articles of Incorporation or Bylaws of
said corporation, or any shareholder agreement, limiting the power of the Board
of Directors of said corporation to pass the foregoing resolutions and that such
resolutions are in conformity with the provisions of such Articles of
Incorporation and Bylaws; and that no approval by the shareholders of, or of the
outstanding shares of, said corporation is required with respect to the matters
which are the subject of the foregoing resolutions.

     IN WITNESS WHEREOF, I have hereunto set my hand and if required by Bank
affixed the corporate seal of said corporation, as of DECEMBER 15, 1997


                                   /s/ Jose S. David
                                   -------------------------------
                                   Jose David, Secretary


(SEAL)


PAGE 2