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                                                                  EXHIBIT 10.22



     This LOAN AND SECURITY AGREEMENT is entered into as of March 15, 1997, 
by and between SILICON VALLEY BANK ("Bank") and MAXIM PHARMACEUTICALS, INC. 
("Borrower").

                                    RECITALS

     Borrower wishes to obtain credit from time to time from Bank, and Bank 
desires to extend credit to Borrower.  This Agreement sets forth the terms on 
which Bank will advance credit to Borrower, and Borrower will repay the 
amounts owing to Bank.

                                    AGREEMENT

     The parties agree as follows:

     1.   DEFINITIONS AND CONSTRUCTION

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

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

               "Advance" or "Advances" means a Term Loan advance or advances, 
respectively.  

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

               "Bank Expenses" means all reasonable costs or expenses 
(including reasonable attorneys' fees and expenses) incurred in connection 
with the preparation, negotiation, administration, and enforcement of the 
Loan Documents; and Bank's reasonable attorneys' fees and expenses incurred 
in amending, enforcing or defending the Loan Documents, (including fees and 
expenses of appeal or review, or those incurred in any Insolvency Proceeding) 
whether or not suit is brought.

               "Borrower's Books" means all of Borrower's books and records 
including, without limitation:  ledgers; records concerning Borrower's assets 
or liabilities, the Collateral, business operations or financial condition; 
and all computer programs, or tape files, and the equipment, containing such 
information.

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

               "Closing Date" means the date of this Agreement.

               "Code" means the California Uniform Commercial Code.


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

               "Committed Term Line" means a credit extension of up to 
Nine-Hundred Thousand Dollars ($900,000) made pursuant to Section 2.1.2 
hereof, and as further limited pursuant to the terms and conditions of 
Section 2.1.2 hereof.

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

               "Copyrights" means any and all copyright rights, copyright
applications, copyright registrations and like protections in each work or
authorship and derivative work thereof, whether published or unpublished and
whether or not the same also constitutes a trade secret, now or hereafter
existing, created, acquired or held.

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

               "Current Assets" means, as of any applicable date, all amounts 
that should, in accordance with GAAP, be included as current assets on the 
consolidated balance sheet of Borrower and its Subsidiaries as at such date.

               "Current Liabilities" means, as of any applicable date, all 
amounts that should, in accordance with GAAP, be included as current 
liabilities on the consolidated balance sheet of Borrower and its 
Subsidiaries, as at such date, plus, to the extent not already included 
therein, all outstanding Credit Extensions made under this Agreement, 
including all Indebtedness that is payable upon demand or within one year 
from the date of determination thereof unless such Indebtedness is renewable 
or extendable at the option of Borrower or any Subsidiary to a date more than 
one year from the date of determination, but excluding Subordinated Debt.

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

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

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


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

               "Insolvency Proceeding" means any proceeding commenced by or 
against any person or entity under any provision of the United States 
Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, 
including assignments for the benefit of creditors, formal or informal 
moratoria, compositions, extension generally with its creditors, or 
proceedings seeking reorganization, arrangement, or other relief.

               "Intellectual Property Collateral" means

               (a)  Copyrights, Trademarks, Patents, and Mask Works;

               (b)  Any and all trade secrets, and any and all intellectual 
property rights in computer software and computer software products now or 
hereafter existing, created, acquired or held;

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

               (d)  Any and all claims for damages by way of past, present 
and future infringement of any of the rights included above, with the right, 
but not the obligation, to sue for and collect such damages for said use or 
infringement of the intellectual property rights identified above;

               (e)  All licenses or other rights to use any of the 
Copyrights, Patents, Trademarks, or Mask Works, and all license fees and 
royalties arising from such use to the extent permitted by such license or 
rights;

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

               (g)  All proceeds and products of the foregoing, including 
without limitation all payments under insurance or any indemnity or warranty 
payable in respect of any of the foregoing.

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

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


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

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

               "Loan Documents" means, collectively, this Agreement, any note 
or notes executed by Borrower, any other present or future agreement entered 
into between Borrower and/or for the benefit of Bank in connection with this 
Agreement, and any other guaranty, pledge agreement or other document entered 
into by a guarantor or any other third party in connection with this 
Agreement, all as amended, extended or restated from time to time.

               "Mask Works" means all mask work or similar rights available 
for the protection of semiconductor chips, now owned or hereafter acquired.

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

               "Maturity Date" means December 31, 2001.  

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

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

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

               "Payment Date" means each of the dates for payment as set 
forth in Section 2.1.2(d) hereof.  

               "Permitted Indebtedness" means:

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

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

               (c)  Subordinated Debt; 

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


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               (e)  Indebtedness secured by Permitted Liens.
               
               "Permitted Investment" means:

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

               (b)  (i)  marketable direct obligations issued or unconditionally
guaranteed by the United States of America or any agency or any State thereof
maturing within two (2) years from the date of acquisition thereof,
(ii) commercial paper maturing no more than two (2) years from the date of
creation thereof and currently having the highest rating obtainable from either
Standard & Poor's Corporation or Moody's Investors Service, Inc., and
(iii) certificates of deposit maturing no more than two (2) years from the date
of investment therein issued by Bank; and

               (c)  if no Event of Default has occurred and is continuing or
would exist after giving effect to such loans, and no event with which notice or
passage of time would constitute an Event of Default has occurred and is
continuing or would exist after giving effect to such loans, Borrower may make
employee loans in an aggregate amount outstanding of $500,000 at any one time
for the purpose of, and only for the purpose of, employee relocation.

               "Permitted Liens" means the following:

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

               (b)  Liens for taxes, fees, assessments or other governmental
charges or levies, either not delinquent or being contested in good faith by
appropriate proceedings and as to which adequate reserves are maintained on
Borrower's Books in accordance with GAAP, PROVIDED the same have no priority
over any of Bank's security interests;

               (c)  Liens (i) upon or in any Equipment acquired or held by
Borrower or any of its Subsidiaries to secure the purchase price or lease of
such Equipment or indebtedness incurred solely for the purpose of financing the
acquisition of such Equipment, provided that the aggregate amount of such
indebtedness outstanding shall not exceed $500,000 at any time outstanding, or
(ii) existing on such equipment at the time of its acquisition, PROVIDED that
the Lien is confined solely to the property so acquired and improvements
thereon, and the proceeds of such equipment;

               (d)  Licenses only with respect to the Borrower's Intellectual
Property Collateral in the ordinary course of Borrower's business relating to
research development, manufacturing and distribution; and

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

               "Permitted Venture Transactions" means that if no Event of
Default has occurred and is continuing or would exist after giving effect to
such actions, and no event with 

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which notice or passage of time would constitute an Event of Default has 
occurred and is continuing or would exist after giving effect to such actions, 
Borrower may enter into joint venture transactions with other Persons with 
respect to the development of products, PROVIDED that such transactions do not 
materially adversely affect the Borrower, PROVIDED, FURTHER, the Borrower does 
not merge, consolidate or otherwise effect a combination with such Person unless
the shareholders of Borrower as currently constituted  retain a controlling 
interest of at least 51% of the resulting entity thereafter, and PROVIDED, 
FURTHER, the Borrower shall provide Bank with such information and documentation
relating to any of the proposed foregoing transactions as Bank may reasonably 
request from time to time.

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

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

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

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

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

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

            "Subsidiary" means with respect to any Person, corporation, 
partnership, company association, joint venture, or any other business entity 
of which more than fifty percent (50%) of the voting stock or other equity 
interests is owned or controlled, directly or indirectly, by such Person or 
one or more Affiliates of such Person.

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

            "Term Loan" and "Term Loans" shall have the meanings set forth in 
Section 2.1.2 hereof.

            "Term Loan Evidence" has the meaning set forth in Section 2.1.2.

            "Term Loan Payment" has the meaning set forth in Section 2.1.5.

            "Total Liabilities" means as of any applicable date, any date as
of which the amount thereof shall be determined, all obligations that should, in
accordance with GAAP be 

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classified as liabilities on the consolidated balance sheet of Borrower, 
including in any event all Indebtedness, but specifically excluding Subordinated
Debt.

               "Trademarks" means any trademark and servicemark rights, whether 
registered or not, applications to register and registrations of the same and
like protections, and the entire goodwill of the business of the assignor
connected with and symbolized by such trademarks.

               "Treasury Bill Rate" means the interest rate per annum equal to
the most recent weekly average yield on actively traded U.S. Treasury
obligations having a final maturity approximate to the Maturity Date as
determined by reference to the week ending figures published in the most recent
Federal Reserve Statistical Release which shall become available at least two
Business Days prior to the date as of which such yield is to be determined, or
if a Statistical Release is not then published, the arithmetic average (rounded
to the nearest .01%) of the per annum yields to maturity for each business day
during the week ending at least two business days prior to the date such
determination is made, of all issues of actively traded marketable United States
Treasury fixed interest rate securities with a constant maturity equal to, or
not more than 30 days longer or 30 days shorter than the Maturity Date
(excluding all such securities which can be surrendered at the option of the
holder at the face value of payment of any Federal estate tax, or which provide
for tax benefits to the holder).

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

     2.   LOAN AND TERMS OF PAYMENT

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

               2.1.1     [Reserved]

               2.1.2     TERM LOANS; ETC.

                    (a)  Subject to and upon the terms and conditions of this
Agreement, at any time from the date hereof through December 31, 1997 (the "Term
Availability End Date"), Bank agrees to make advances (each a "Term Loan" and
collectively the "Term Loans") to Borrower in an aggregate, initial outstanding
amount thereof not to exceed the Committed Term Line, PROVIDED in no event shall
the amount of each Term Loan exceed 100% of the net purchase price of new
equipment being purchased by Borrower or equipment purchased by the Borrower on
and after October 1, 1996, comprised of general purpose, scientific, laboratory,
manufacturing and test equipment, associated software, computer equipment,
office equipment, furnishing and leasehold improvements and which is otherwise
acceptable to Silicon in its sole discretion (the "Equipment Borrowing Base"),
PROVIDED that the aggregate, original principal amount of Term Loans relating to
leasehold improvements shall not exceed $100,000.  The "net purchase price" of
equipment means the purchase price thereof, as shown on the applicable invoice,
net of all charges for taxes, freight, delivery, insurance, set-up, training,
manuals, fees, service charges and other similar items, provided that only up to
15% of 

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the total purchase price of equipment included in the Equipment Borrowing Base 
may consist of software.  To evidence each Term Loan, Borrower shall deliver to 
Bank, at the time of each Term Loan request, evidence, in form and substance 
satisfactory to Bank (the "Term Loan Evidence"), of the equipment purchases that
are the subject of the Equipment Borrowing Base.

                    (b)  Interest shall accrue from the date of each Term Loan
at the per annum rate equal to one-half of one percent (0.50%) above the Prime
Rate (the "Prime Option Rate") and shall be payable monthly for each month
through the Term Availability End Date.  On and after the Term Availability End
Date, interest shall accrue at either the Prime Option Rate or the Fixed Option
Rate (as defined below), at the Borrower's election made by the Borrower on the
Term Availability End Date by notifying Bank in writing of the Borrower's
election; if Borrower fails to notify the Bank on or before the Term
Availability End Date of such interest rate election, then the interest rate
shall be deemed to be the Prime Option Rate.  Such interest shall be payable
monthly for each month while the Term Loans are outstanding.  As used herein the
term "Fixed Option Rate" shall mean the Treasury Bill Rate in effect as of the
Term Availability End Date on a per annum basis plus Four percent (4.00%).

                    (c)  In the event the Prime Rate is changed from time to
time hereafter, the applicable rate of interest hereunder shall be increased or
decreased effective as of 12:01 a.m. on the day the Prime Rate is changed, by an
amount equal to such change in the Prime Rate.  All interest chargeable under
the Loan Documents shall be computed on the basis of a three hundred sixty (360)
day year for the actual number of days elapsed.

                    (d)  Any Term Loans that are outstanding on the Term
Availability End Date will be payable in forty-eight (48) equal monthly
installments of principal, plus all accrued interest, with the first of such
payments due on February 1, 1998, and continuing on the first day of each month
thereafter for the following forty-six (46) consecutive months, with all Term
Loans and all Obligations relating thereto to be fully due and payable in a
final payment no later than December 31, 2001.  Term Loans, once repaid, may not
be reborrowed.

                    (e)  When Borrower desires to obtain a Term Loan, Borrower
shall notify Bank (which notice shall be irrevocable) by facsimile transmission
to be received no later than 3:00 p.m. Pacific time one (1) Business Day before
the day on which the Term Loan is to be made.  Such notice shall be
substantially in the form of Exhibit B.  The notice shall be signed by a
Responsible Officer or its designee and include the Investor Evidence.

                    (f)  In the event any principal of the Term Loan is prepaid
prior to the dates due under the schedule of principal payments set forth above
and Borrower has elected the Fixed Option Rate only, Borrower shall also pay
Bank a prepayment fee in an amount equal to the following percentage of the
amount prepaid or required to be prepaid, based on the date 

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the prepayment occurs or the date prepayment is due as a result of an Event of
Default or termination of this Agreement:
                         
                      Prior to or during the 1998 calendar year:   3%
                      During the 1999 calendar year:               2%
                      During the 2000 calendar year:               1%

          2.2  [RESERVED]

          2.3  INTEREST RATES, PAYMENTS, AND CALCULATIONS; ETC.

               (a)  INTEREST RATE.  The Term Loans shall have the interest rate
as set forth in Section 2.1(b) above.

               (b)  DEFAULT RATE.  All Obligations shall bear interest, from and
after the occurrence of an Event of Default, at a rate equal to five (5) 
percentage points above the interest rate applicable immediately prior to the 
occurrence of the Event of Default.

               (c)  PAYMENTS.  Interest hereunder shall be due and payable on 
each Payment Date.  Borrower hereby authorizes Bank to debit any accounts with 
Bank, including, without limitation, Account Number 3300037597 for payments 
of principal and interest due on the Obligations and any other amounts owing 
by Borrower to Bank.  Bank will notify Borrower of all debits which Bank has 
made against Borrower's accounts.  Any such debits against Borrower's accounts
in no way shall be deemed a set-off.  Any interest not paid when due shall be 
compounded by becoming a part of the Obligations, and such interest shall 
thereafter accrue interest at the rate then applicable hereunder.

               (d)  COMPUTATION.  In the event the Prime Rate is changed from 
time to time hereafter, the applicable rate of interest hereunder shall be 
increased or decreased effective as of 12:01 a.m. on the day the Prime Rate is 
changed, by an amount equal to such change in the Prime Rate.  All interest 
chargeable under the Loan Documents shall be computed on the basis of a three
hundred sixty (360) day year for the actual number of days elapsed.

          2.4  CREDITING PAYMENTS.  Prior to the occurrence of an Event of 
Default, Bank shall credit a wire transfer of funds, check or other item of 
payment to such deposit account or Obligation as Borrower specifies.  After 
the occurrence of an Event of Default, the receipt by Bank of any wire transfer
of funds, check, or other item of payment, whether directed to Borrower's 
deposit account with Bank or to the Obligations or otherwise, shall be 
immediately applied to conditionally reduce Obligations, but shall not be 
considered a payment in respect of the Obligations unless such payment is of 
immediately available federal funds or unless and until such check or other 
item of payment is honored when presented for payment.  Notwithstanding anything
to the contrary contained herein, any wire transfer or payment received by Bank
after 12:00 noon Pacific time shall be deemed to have been received by Bank as 
of the opening of business on the immediately following Business Day.  
Whenever any payment to Bank under the Loan Documents would otherwise be due 
(except by reason of acceleration) on a date that is not a Business Day, such 
payment shall instead be due on the next Business Day, and additional fees or 
interest, as the case may be, shall accrue and be payable for the period of 
such extension.

          2.5  FEES.  Borrower shall pay to Bank the following:

                                       9

<PAGE>

               (a)  FACILITY FEE.  A Facility Fee equal to Four-Thousand 
Five-Hundred Dollars ($4,500), which fee shall be due on the Closing Date and 
shall be fully earned and non-refundable;

               (b)  FINANCIAL EXAMINATION AND APPRAISAL FEES.  Bank's 
customary fees and out-of-pocket expenses for Bank's audits of Borrower's 
Accounts, and for each appraisal of Collateral and financial analysis and 
examination of Borrower performed from time to time by Bank or its agents;

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

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

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

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

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

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

          2.7  TERM.  Except as otherwise set forth herein, this Agreement 
shall become effective on the Closing Date and, subject to Section 12.7, 
shall continue in full force and effect for a term ending on the Maturity 
Date.  Notwithstanding the foregoing, Bank shall have the right to terminate 
its obligation to make Credit Extensions under this Agreement immediately and 
without notice upon the occurrence and during the continuance of an Event of 
Default.  Notwithstanding termination of this Agreement, Bank's lien on the 
Collateral shall remain in effect for so long as any Obligations are 
outstanding.

     3.   CONDITIONS OF LOANS

          3.1  CONDITIONS PRECEDENT TO INITIAL CREDIT EXTENSION.  The 
obligation of Bank to make the initial Credit Extension is subject to the 
condition precedent that Bank shall have received, in form and substance 
satisfactory to Bank, the following:

                                     10

<PAGE>

               (a)  this Agreement;

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

               (c)  financing statements (Forms UCC-1) executed by Borrower, 
in form and substance satisfactory to Borrower ;

               (d)  insurance certificate;

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

               (f)  Certificate of Foreign Qualification (if applicable); and 

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

          3.2  CONDITIONS PRECEDENT TO ALL CREDIT EXTENSIONS.  The obligation 
of Bank to make each Credit Extension, including the initial Credit 
Extension, is further subject to the following conditions:

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

               (b)  the representations and warranties contained in Section 5 
shall be true and correct in all material respects on and as of the date of 
such Payment/Advance Form and on the effective date of each Credit Extension 
as though made at and as of each such date, and no Event of Default shall 
have occurred and be continuing, or would result from such Credit Extension.  
The making of each Credit Extension shall be deemed to be a representation 
and warranty by Borrower on the date of such Credit Extension as to the 
accuracy of the facts referred to in this Section 3.2(b); and

               (c)  with respect to each Term Loan, the Term Loan Evidence.

     4.   CREATION OF SECURITY INTEREST

          4.1  GRANT OF SECURITY INTEREST.  Borrower grants and pledges to 
Bank a continuing security interest in all presently existing and hereafter 
acquired or arising Collateral in order to secure prompt payment of any and 
all Obligations and in order to secure prompt performance by Borrower of each 
of its covenants and duties under the Loan Documents.  Except as set forth in 
the Schedule, such security interest constitutes a valid, first priority 
security interest in the presently existing Collateral, and will constitute a 
valid, first priority security interest in Collateral acquired after the date 
hereof.  Borrower acknowledges that Bank may place a "hold" on any Deposit 
Account pledged as Collateral to secure the Obligations. Notwithstanding 
termination of this Agreement, Bank's Lien on the Collateral shall remain in 
effect for so long as any Obligations are outstanding. 

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

                                    11

<PAGE>

          4.3  RIGHT TO INSPECT.  Bank (through any of its officers, 
employees, or agents) shall have the right, upon reasonable prior notice, 
from time to time during Borrower's usual business hours, to inspect 
Borrower's Books and to make copies thereof and to check, test, and appraise 
the Collateral in order to verify Borrower's financial condition or the 
amount, condition of, or any other matter relating to, the Collateral.

     5.   REPRESENTATIONS AND WARRANTIES

     Borrower represents and warrants as follows: 

          5.1  DUE ORGANIZATION AND QUALIFICATION.  Borrower and each 
Subsidiary is a corporation duly existing and in good standing under the laws 
of its state of incorporation and qualified and licensed to do business in, 
and is in good standing in, any state in which the conduct of its business or 
its ownership of property requires that it be so qualified.

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

          5.3  NO PRIOR ENCUMBRANCES.  Borrower has good and indefeasible 
title to the Collateral, free and clear of Liens, except for Permitted Liens.

          5.4  [RESERVED]

          5.5  MERCHANTABLE INVENTORY.  All Inventory is in all material 
respects of good and marketable quality, free from all material defects.

          5.6  INTELLECTUAL PROPERTY.  Borrower is the sole owner of the 
Intellectual Property Collateral, except for non-exclusive licenses granted 
by Borrower to its customers in the ordinary course of business and except 
for the Permitted Liens.  Each of the Patents is valid and enforceable, and 
no part of the Intellectual Property Collateral has been judged invalid or 
unenforceable, in whole or in part, and no claim has been made that any part 
of the Intellectual Property Collateral violates the rights of any third 
party.  Except for and upon the filing with the United States Patent and 
Trademark Office with respect to the Patents and Trademarks and the Register 
of Copyrights with respect to the Copyrights and Mask Works necessary to 
perfect the security interests created hereunder, and except as has been 
already made or obtained, no authorization, approval or other action by, and 
no notice to or filing with, any United States governmental authority or 
United States regulatory body is required either (i) for the grant by 
Borrower of the security interest granted hereby or for the execution, 
delivery or performance of Loan Documents by Borrower in the United States or 
(ii) for the perfection in the United States or the exercise by Bank of its 
rights and remedies hereunder.

          5.7  NAME; LOCATION OF CHIEF EXECUTIVE OFFICE.  Except as disclosed 
in the Schedule, Borrower has not done business and will not without at least 
thirty (30) days prior written notice to Bank do business under any name 
other than that specified on the signature page hereof.  The chief executive 
office of Borrower is located at the address indicated in Section 10 hereof.

                                          12

<PAGE>

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

          5.9  NO MATERIAL ADVERSE CHANGE IN FINANCIAL STATEMENTS.  All 
consolidated financial statements related to Borrower and any Subsidiary that 
have been delivered by Borrower to Bank fairly present in all material 
respects Borrower's consolidated financial condition as of the date thereof 
and Borrower's consolidated results of operations for the period then ended. 
There has not been a material adverse change in the consolidated financial 
condition of Borrower since the date of the most recent of such financial 
statements submitted to Bank on or about the Closing Date.

          5.10 SOLVENCY.  The fair saleable value of Borrower's assets 
(including goodwill minus disposition costs) exceeds the fair value of its 
liabilities; the Borrower is not left with unreasonably small capital after 
the transactions contemplated by this Agreement; and Borrower is able to pay 
its debts (including trade debts) as they mature.

          5.11 REGULATORY COMPLIANCE.  Borrower and each Subsidiary has met 
the minimum funding requirements of ERISA with respect to any employee 
benefit plans subject to ERISA.  No event has occurred resulting from 
Borrower's failure to comply with ERISA that is reasonably likely to result 
in Borrower's incurring any liability that could have a Material Adverse 
Effect.  Borrower is not an "investment company" or a company "controlled" by 
an "investment company" within the meaning of the Investment Company Act of 
1940. Borrower is not engaged principally, or as one of its important 
activities, in the business of extending credit for the purpose of purchasing 
or carrying margin stock (within the meaning of Regulations G, T and U of the 
Board of Governors of the Federal Reserve System).  Borrower has complied 
with all the provisions of the Federal Fair Labor Standards Act.  Borrower 
has not violated any statutes, laws, ordinances or rules applicable to it, 
violation of which could have a Material Adverse Effect.

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

          5.13 TAXES.  Borrower and each Subsidiary has filed or caused to be 
filed all tax returns required to be filed on a timely basis, and has paid, 
or has made adequate provision for the payment of, all taxes reflected 
therein.

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

                                        13

<PAGE>

          5.15 GOVERNMENT CONSENTS.  Borrower and each Subsidiary has 
obtained all consents, approvals and authorizations of, made all declarations 
or filings with, and given all notices to, all governmental authorities that 
are necessary for the continued operation of Borrower's business as currently 
conducted.

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

     6.   AFFIRMATIVE COVENANTS

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

          6.1  GOOD STANDING.  Borrower shall maintain its and each of its 
Subsidiaries' corporate existence and good standing in its jurisdiction of 
incorporation and maintain qualification in each jurisdiction in which the 
failure to so qualify could have a Material Adverse Effect.  Borrower shall 
maintain, and shall cause each of its Subsidiaries to maintain, to the extent 
consistent with prudent management of Borrower's business, in force all 
licenses, approvals and agreements, the loss of which could have a Material 
Adverse Effect.

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

          6.3  FINANCIAL STATEMENTS, REPORTS, CERTIFICATES.  Borrower shall 
deliver to Bank:  (a) as soon as available, but in any event within thirty 
(30) days after the end of each month, a company prepared consolidated 
balance sheet and income statement covering Borrower's consolidated 
operations during such period (in a form and certified by an officer of 
Borrower reasonably acceptable to Bank); (b) as soon as available, but in any 
event within one-hundred twenty (120) days after the end of the fiscal year 
of Borrower, audited consolidated financial statements of Borrower prepared 
in accordance with GAAP, consistently applied, together with an unqualified 
opinion on such financial statements of an independent certified public 
accounting firm reasonably acceptable to Bank; (c) within five (5) days of 
filing, copies of all statements, reports and notices sent or made available 
generally by Borrower to its security holders or to any holders of 
Subordinated Debt and all reports on Form 10-K, 10-Q and 8-K filed with the 
Securities and Exchange Commission; (d) promptly upon receipt of notice 
thereof, a report of any legal actions pending or threatened against Borrower 
or any Subsidiary that could result in damages or costs to Borrower or any 
Subsidiary of One Hundred Thousand Dollars ($100,000) or more; and (e) such 
budgets, sales projections, operating plans or other financial information as 
Bank may reasonably request from time to time.

          Within thirty (30) days after the last day of each month, Borrower 
shall deliver to Bank with the financial statements a Compliance Certificate 
signed by a Responsible Officer in substantially the form of EXHIBIT D hereto.

                                       14
<PAGE>


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

          6.4  INVENTORY; RETURNS.  Borrower shall keep all Inventory in good 
and marketable condition, free from all material defects.  Returns and 
allowances, if any, as between Borrower and its account debtors shall be on 
the same basis and in accordance with the usual customary practices of 
Borrower, as they exist at the time of the execution and delivery of this 
Agreement. Borrower shall promptly notify Bank of all returns and recoveries 
and of all disputes and claims, where the return, recovery, dispute or claim 
involves more than Fifty Thousand Dollars ($50,000).

          6.5  TAXES.  Borrower shall make, and shall cause each Subsidiary 
to make, due and timely payment or deposit of all material federal, state, 
and local taxes, assessments, or contributions required of it by law, and 
will execute and deliver to Bank, on demand, appropriate certificates 
attesting to the payment or deposit thereof; and Borrower will make, and will 
cause each Subsidiary to make, timely payment or deposit of all material tax 
payments and withholding taxes required of it by applicable laws, including, 
but not limited to, those laws concerning F.I.C.A., F.U.T.A., state 
disability, and local, state, and federal income taxes, and will, upon 
request, furnish Bank with proof satisfactory to Bank indicating that 
Borrower or a Subsidiary has made such payments or deposits; provided that 
Borrower or a Subsidiary need not make any payment if the amount or validity 
of such payment is (I) contested in good faith by appropriate proceedings, 
(ii) is reserved against (to the extent required by GAAP) by Borrower and 
(iii) no lien other than a Permitted Lien results.

          6.6  INSURANCE.

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

               (b)  All such policies of insurance shall be in such form, 
with such companies, and in such amounts as are reasonably satisfactory to 
Bank.  All such policies of property insurance shall contain a lender's loss 
payable endorsement, in a form satisfactory to Bank, showing Bank as an 
additional loss payee thereof and all liability insurance policies shall show 
the Bank as an additional insured, and shall specify that the insurer must 
give at least twenty (20) days notice to Bank before canceling its policy for 
any reason.  At Bank's request, Borrower shall deliver to Bank certified 
copies of such policies of insurance and evidence of the payments of all 
premiums therefor.  All proceeds payable under any such policy shall, at the 
option of Bank, be payable to Bank to be applied on account of the 
Obligations.

          6.7  PRINCIPAL DEPOSITORY.  Borrower shall maintain its principal 
depository and operating accounts with Bank.

          6.8  LITIGATION.  The Borrower will promptly inform Silicon in 
writing of any claim, proceeding, litigation or investigation in the future 
threatened or instituted by or against the Borrower involving amounts in 
excess of $100,000.

          6.9  [Reserved]


                                      15


<PAGE>


          6.10 [Reserved]

          6.11 [Reserved]

          6.12 REMAINING MONTHS LIQUIDITY; CASH PLEDGE; ETC.  Borrower shall 
maintain, as of the last calendar day of each month, at least Twelve (12) 
months Remaining Months Liquidity.  "Remaining Months Liquidity" is defined 
as cash on hand (and cash equivalents and marketable securities), divided by 
Cash Burn.  "Cash Burn" is defined as cash (prior period) minus cash (current 
period) plus increases in short and long term borrowings plus increases in 
equity (or subordinated debt).  Alternatively, Borrower may maintain cash on 
hand (and cash equivalents and marketable securities) in an amount equal to 
two multiplied times the principal amount of the Term Loans outstanding.  If 
the Borrower fails to maintain either of the above covenants, then Borrower 
agrees to deposit cash with the Bank in an amount equal to the amount of the 
Term Loans outstanding, as collateral security for the repayment of the 
Obligations, and to execute and deliver to the Bank the Bank's standard cash 
collateral security agreement in connection therewith. Upon the Borrower's 
subsequent satisfaction of either of the financial covenants set forth in 
this section, Bank agrees to terminate such cash pledge as long as Borrower 
remains in compliance therewith.  

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

     7.   NEGATIVE COVENANTS

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

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

          7.2  CHANGES IN BUSINESS, OWNERSHIP, OR MANAGEMENT, BUSINESS 
LOCATIONS.  Engage in any business, or permit any of its Subsidiaries to 
engage in any business, other than the businesses currently engaged in by 
Borrower and any business substantially similar or related thereto (or 
incidental thereto), or suffer a change in Borrower's ownership of greater 
than 20% compared to the date hereof or suffer a material change in 
Borrower's management compared to the date hereof, other than Permitted 
Venture Transactions. Borrower will not, without at least thirty (30) days 
prior written notification to Bank, relocate its chief executive office or 
add any new offices or business locations.

          7.3  MERGERS OR ACQUISITIONS.  Merge or consolidate, or permit any 
of its Subsidiaries to merge or consolidate, with or into any other business 
organization, or acquire, or permit any of its Subsidiaries to acquire, all 
or substantially all of the capital stock or property of another Person if no 
Event of Default has occurred and is continuing or would exist after giving 
effect to such action, result in a change of more than 25% of Net Worth, 
other than in connection with Permitted Venture Transactions.


                                      16


<PAGE>


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

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

          7.6  DISTRIBUTIONS.  Pay any dividends or make any other 
distribution or payment on account of or in redemption, retirement or 
purchase of any capital stock, provided that, after giving effect thereto, no 
Event of Default has occurred and is continuing and no event has occurred 
which, with notice or passage of time or both, would constitute an Event of 
Default, and provided that the following is done in compliance with all 
material applicable laws, rules and regulations, Borrower may repurchase 
shares of Borrower's stock pursuant to any employee stock purchase or benefit 
plan, provided that the total amount paid by Borrower for such stock does not 
exceed $500,000 in any fiscal year.

          7.7  INVESTMENTS.  Directly or indirectly acquire or own, or make 
any Investment in or to any Person, or permit any of its Subsidiaries so to 
do, other than Permitted Investments.

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

          7.9  [Reserved]

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

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

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


                                      17


<PAGE>

     8.   EVENTS OF DEFAULT

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

          8.1  PAYMENT DEFAULT.  If Borrower fails to pay, when due, any of 
the Obligations.

          8.2  COVENANT DEFAULT.  

               (a)  If Borrower fails to perform any obligation under 
Sections 6.3, 6.6, 6.7, 6.12, or 6.13 or violates any of the covenants 
contained in Article 7 of this Agreement, or 

               (b)  If Borrower fails or neglects to perform, keep, or 
observe any other material term, provision, condition, covenant, or agreement 
contained in this Agreement, in any of the Loan Documents, or in any other 
present or future agreement between Borrower and Bank and as to any default 
under such other term, provision, condition, covenant or agreement that can 
be cured, has failed to cure such default within ten (10) days after the 
occurrence thereof; provided, however, that if the default cannot by its 
nature be cured within the ten (10) day period or cannot after diligent 
attempts by Borrower be cured within such ten (10) day period, and such 
default is likely to be cured within a reasonable time, then Borrower shall 
have an additional reasonable period (which shall not in any case exceed 
thirty (30) days) to attempt to cure such default, and within such reasonable 
time period the failure to have cured such default shall not be deemed an 
Event of Default (provided that no Advances will be required to be made 
during such cure period);

          8.3  MATERIAL ADVERSE CHANGE. If there (i) occurs, compared to the 
date hereof, a material adverse change in the business, operations, or 
condition (financial or otherwise) of the Borrower, or (ii)  is a material 
impairment of the prospect of repayment of any portion of the Obligations or 
(iii) is a material impairment of the value or priority of Bank's security 
interests in the Collateral (assuming that as of the date hereof the Bank has 
a first perfected security interest in the Collateral, subject only to the 
Permitted Liens);

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

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

                                      18


<PAGE>

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

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

          8.8  JUDGMENTS.  If a judgment or judgments for the payment of 
money in an amount, individually or in the aggregate, of at least Fifty 
Thousand Dollars ($50,000) shall be rendered against Borrower and shall 
remain unsatisfied and unstayed for a period of ten (10) days (provided that 
no Credit Extensions will be made prior to the satisfaction or stay of such 
judgment); or

          8.9  MISREPRESENTATIONS.  If any material misrepresentation or 
material misstatement exists now or hereafter in any warranty or 
representation set forth herein or in any certificate or writing delivered to 
Bank by Borrower or any Person acting on Borrower's behalf pursuant to this 
Agreement or to induce Bank to enter into this Agreement or any other Loan 
Document.

          8.10 GUARANTY.  Any guaranty of all or a portion of the Obligations 
ceases for any reason to be in full force and effect, or any guarantor of the 
Obligations fails to perform any obligation under any guaranty of all or a 
portion of the Obligations, or any material misrepresentation or material 
misstatement exists now or hereafter in any warranty or representation set 
forth in any guaranty of all or a portion of the Obligations or in any 
certificate delivered to Bank in connection with such guaranty, or any of the 
circumstances described in Sections 8.4, 8.5 or 8.8 occur with respect to any 
guarantor of the Obligations.  

     9.   BANK'S RIGHTS AND REMEDIES

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

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

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

               (c)  [Reserved]

               (d)  [Reserved]

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

               (f)  Without notice to or demand upon Borrower, make such 
payments and do such acts as Bank considers necessary or reasonable to 
protect its security interest in the Collateral.  Borrower agrees to assemble 
the Collateral if Bank so requires, and to make the 


                                       19
<PAGE>

Collateral available to Bank as Bank may designate.  Borrower authorizes Bank 
to enter the premises where the Collateral is located, to take and maintain 
possession of the Collateral, or any part of it, and to pay, purchase, 
contest, or compromise any encumbrance, charge, or lien which in Bank's 
determination appears to be prior or superior to its security interest and to 
pay all expenses incurred in connection therewith.  With respect to any of 
Borrower's premises, Borrower hereby grants Bank a license to enter such 
premises and to occupy the same, without charge in order to exercise any of 
Bank's rights or remedies provided herein, at law, in equity, or otherwise;

               (g)  Without notice to Borrower set off and apply to the 
Obligations any and all (i) balances and deposits of Borrower held by Bank, 
or (ii) indebtedness at any time owing to or for the credit or the account of 
Borrower held by Bank;

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

               (i)  Sell the Collateral at either a public or private sale, 
or both, by way of one or more contracts or transactions, for cash or on 
terms, in such manner and at such places (including Borrower's premises) as 
Bank determines is commercially reasonable, and apply the proceeds thereof to 
the Obligations in whatever manner or order it deems appropriate;

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

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

               (l)  Bank shall have a non-exclusive, royalty-free license to 
use the Intellectual Property Collateral to the extent reasonably necessary 
to permit Bank to exercise its rights and remedies upon the occurrence of an 
Event of Default.

          9.2  POWER OF ATTORNEY.  Effective only upon the occurrence and 
during the continuance of an Event of Default, Borrower hereby irrevocably 
appoints Bank (and any of Bank's designated officers, or employees) as 
Borrower's true and lawful attorney to:  (a) send requests for verification 
of Accounts or notify account debtors of Bank's security interest in the 
Accounts; (b)_endorse Borrower's name on any checks or other forms of payment 
or security that may come into Bank's possession; (c) sign Borrower's name on 
any invoice or bill of lading relating to any Account, drafts against account 
debtors, schedules and assignments of Accounts, verifications of Accounts, 
and notices to account debtors; (d) make, settle, and adjust all claims under 
and decisions with respect to Borrower's policies of insurance; and (e) 
settle and adjust disputes and claims respecting the accounts directly with 
account debtors, for amounts and upon terms which Bank determines to be 
reasonable; (f) [reserved]; (g) to file, in its sole discretion, one or more 
financing or continuation statements and amendments thereto, relative to any 
of the Collateral without the signature of Borrower where permitted by law; 
and (h) [reserved], PROVIDED Bank may exercise such power of attorney to sign 
the name of Borrower on any of the documents described in Section 4.2 
regardless of whether an Event of Default has occurred.  The



                                      20
<PAGE>

appointment of Bank as Borrower's attorney in fact, and each and every one of 
Bank's rights and powers, being coupled with an interest, is irrevocable 
until all of the Obligations have been fully repaid and performed and Bank's 
obligation to provide advances hereunder is terminated.

          9.3  ACCOUNTS COLLECTION.  Upon the occurrence and during the 
continuance of an Event of Default, Bank may notify any Person owing funds to 
Borrower of Bank's security interest in such funds and verify the amount of 
such Account.  Borrower shall collect all amounts owing to Borrower for Bank, 
receive in trust all payments as Bank's trustee, and if requested or required 
by Bank, immediately deliver such payments to Bank in their original form as 
received from the account debtor, with proper endorsements for deposit.

          9.4  BANK EXPENSES.  If Borrower fails to pay any amounts or 
furnish any required proof of payment due to third persons or entities, as 
required under the terms of this Agreement, then Bank may do any or all of 
the following:  (a) make payment of the same or any part thereof; (b) set up 
such reserves under the Committed Revolving Line as Bank deems necessary to 
protect Bank from the exposure created by such failure; or (c) obtain and 
maintain insurance policies of the type discussed in Section 6.6 of this 
Agreement, and take any action with respect to such policies as Bank deems 
prudent.  Any amounts so paid or deposited by Bank shall constitute Bank 
Expenses, shall be immediately due and payable, and shall bear interest at 
the then applicable rate hereinabove provided, and shall be secured by the 
Collateral.  Any payments made by Bank shall not constitute an agreement by 
Bank to make similar payments in the future or a waiver by Bank of any Event 
of Default under this Agreement.

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

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

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

     10.  NOTICES

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



                                      21
<PAGE>

     If to Borrower  Maxim Pharmaceuticals, Inc.
                     3099 Science Park Road, Suite 150
                     San Diego, California  92121
                     Attn:  Dale A. Sander, Chief Financial Officer
                     FAX:  619-453-5005

     If to Bank      Silicon Valley Bank
                     5414 Oberlin Drive, Suite 230
                     San Diego, California  92121
                     Attn:  Manager
                     FAX:  619-535-1611

     With a copy to:
                     Silicon Valley Bank
                     3003 Tasman Drive
                     Santa Clara, California  95054
                     Attn:  Legal Department
                     FAX:  408-496-2419

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

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

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

     12.  GENERAL PROVISIONS

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

          12.2 INDEMNIFICATION.  Borrower shall , indemnify ,defend, protect 
and hold harmless Bank and its officers, employees, and agents against:  (a) 
all obligations, demands, claims, and liabilities claimed or asserted by any 
other party in connection with the transactions



                                      22
<PAGE>

contemplated by the Loan Documents; and (b) all losses or Bank Expenses in 
any way suffered, incurred, or paid by Bank as a result of or in any way 
arising out of, following, or consequential to transactions between Bank and 
Borrower whether under the Loan Documents, or otherwise (including without 
limitation reasonable attorneys fees and expenses), except for losses caused 
by Bank's gross negligence or willful misconduct.

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

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

          12.5 AMENDMENTS IN WRITING, INTEGRATION.  This Agreement cannot be 
amended or terminated except by a writing signed by Borrower and Bank.  All 
prior agreements, understandings, representations, warranties, and 
negotiations between the parties hereto with respect to the subject matter of 
this Agreement, if any, are merged into this Agreement and the Loan Documents.

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

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

          12.8 CONFIDENTIALITY.  In handling any confidential information 
Bank shall exercise the same degree of care that it exercises with respect to 
its own proprietary information of the same types to maintain the 
confidentiality of any non-public information thereby received or received 
pursuant to this Agreement except that disclosure of such information may be 
made (i) to the subsidiaries or affiliates of Bank in connection with their 
present or prospective business relations with Borrower, (ii) to prospective 
transferees or purchasers of any interest in the Loans, provided that they 
have entered into a comparable confidentiality agreement in favor of Borrower 
and have delivered a copy to Borrower, (iii) as required by law, regulations, 
rule or order, subpoena, judicial order or similar order,  (iv) as may be 
required in connection with the examination, audit or similar investigation 
of Bank, and (v) as Bank may deem appropriate in connection with the exercise 
of any remedies hereunder.  Confidential information hereunder shall not 
include information that either: (a) is in the public domain or in the 
knowledge or possession of Bank when disclosed to Bank, or becomes part of 
the public domain after disclosure to Bank through no fault of Bank; or (b) 
is disclosed to Bank by a third party, provided Bank does not have actual 
knowledge that such third party is prohibited from disclosing such 
information.

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

                                              MAXIM PHARMACEUTICALS, INC.



                                      23
<PAGE>

                                      By: /s/ DALE S. SANDER
                                          ------------------
                                      Title:  CHIEF FINANCIAL OFFICER
                                              -----------------------

                                      By: /s/ LARRY G. STAMBAUGH 
                                          ----------------------
                                      Title:  Chairman and CEO


                                      SILICON VALLEY BANK

                                      By:  /s/ LINDA S. LEBEAU
                                      Title:  Senior Vice-President



                                      24
<PAGE>

                                        EXHIBIT A

     The Collateral shall consist of all right, title and interest of 
Borrower in and to the following, now existing or hereafter arising:

     (a)  All goods, farm products and equipment now owned or hereafter 
acquired, including, without limitation, all machinery, fixtures, trade 
fixtures, vehicles (including motor vehicles and trailers), furniture, 
materials, tools, office equipment, computers and peripheral devices, 
appliances, apparatus, parts, dies and jigs, and any interest in any of the 
foregoing, and all attachments, accessories, accessions, replacements, 
substitutions, additions, and improvements to any of the foregoing, wherever 
located;

     (b)  All inventory, now owned or hereafter acquired, including, without 
limitation, all merchandise, raw materials, parts, supplies, advertising, 
packing and shipping materials, work in process and finished products 
including such inventory as is temporarily out of Borrower's custody or 
possession or in transit and including any returns upon any accounts or other 
proceeds, including insurance proceeds, resulting from the sale or 
disposition of any of the foregoing and any documents of title representing 
any of the above, and all other tangible personal property which is held for 
sale or lease or furnished under contracts of service or consumed in 
Borrower's business, and all warehouse receipts and other documents;

     (c)  All contract rights and general intangibles now owned or hereafter 
acquired, including, without limitation, goodwill, trademarks, servicemarks, 
trade styles, trade names, patents, patent applications, leases, license 
agreements, franchise agreements, blueprints, drawings, purchase orders, 
customer lists, route lists, infringements, claims, computer programs, 
computer discs, computer tapes, literature, reports, catalogs, design rights, 
federal, state and local tax refunds, security deposits, loan commitment 
fees, all 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 Bank, all 
rights to purchase or sell real or personal property, all royalties, payments 
of insurance and rights to payment of any kind, all processes, telephone 
numbers, proprietary information, purchase orders, all insurance policies and 
claims (including, without limitation, credit, liability, property and other 
insurance), and all other rights , privileges and franchises of every kind;

     (d)  All now existing and hereafter arising accounts, contract rights, 
royalties, license rights and all other forms of obligations owing to 
Borrower arising out of the sale or lease of goods, the licensing of 
technology or the rendering of services by Borrower, whether or not earned by 
performance, and any and all credit insurance, guaranties, and other security 
therefor, as well as all merchandise returned to or reclaimed by Borrower;

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

     (f)  All copyright rights, copyright applications, copyright 
registrations and like protections in each work of authorship and derivative 
work thereof, whether published or unpublished, now owned or hereafter 
acquired; all trade secret rights, including all rights to unpatented 
inventions, know-how, operating manuals, license rights and agreements and 
confidential information, now owned or hereafter acquired; all mask work or 
similar rights available for the protection of semiconductor chips, now owned 
or hereafter acquired; all claims for damages by way of any past, present and 
future infringement of any of the foregoing; and

                                    1

<PAGE>

     (g)  all of Borrower's books and records including, without limitation:  
ledgers; records concerning Borrower's assets or liabilities, the Collateral, 
business operations or financial condition; and all computer programs, or 
tape files, and the equipment, containing such information, in each case 
relating to the foregoing and any and all claims, rights and interests in any 
of the above and all substitutions for, additions and accessions to and 
proceeds thereof.

                                     2

<PAGE>


                                   EXHIBIT B

                  LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM

              DEADLINE FOR SAME DAY PROCESSING IS 3:00 P.M., P.S.T.

TO:  CENTRAL CLIENT SERVICE DIVISION                   DATE:  ________________

FAX#:  (408) __________                                TIME:  ________________

FROM:_________________________________________________________________________
          BORROWER'S NAME

FROM:_________________________________________________________________________
          AUTHORIZED SIGNER'S NAME

______________________________________________________________________________
          AUTHORIZED SIGNATURE

PHONE:________________________________________________________________________

FROM ACCOUNT #_________________________ TO ACCOUNT#___________________________


  REQUESTED TRANSACTION TYPE                          REQUEST DOLLAR AMOUNT
  --------------------------                          ---------------------
  PRINCIPAL INCREASE (ADVANCE)                       $_____________________
  PRINCIPAL PAYMENT (ONLY)                           $_____________________
  INTEREST PAYMENT (ONLY)                            $_____________________
  PRINCIPAL AND INTEREST (PAYMENT)                   $_____________________
  OTHER INSTRUCTIONS:______________________________________________________


     All representations and warranties of Borrower stated in the Loan and 
Security Agreement are true, correct and complete in all material respects as 
of the date of the telephone request for and Advance confirmed by this 
Advance Request; provided, however, that those representations and warranties 
expressly referring to another date shall be true, correct and complete in 
all material respects as of such date.


                                BANK USE ONLY:
                              TELEPHONE REQUEST:
                              ------------------
The following person is authorized to request the loan payment transfer/loan 
advance on the advance designated account and is known to me.
______________________________________________________________________________
Authorized Requester

                                       __________________________________
                                       Authorized Signature (Bank)
                                       Phone #___________________________




                                       1

<PAGE>

                                   EXHIBIT C


                                  [Reserved]








                                       1

<PAGE>


                                   EXHIBIT D

                            COMPLIANCE CERTIFICATE

TO:       SILICON VALLEY BANK
FROM:

     The undersigned authorized officer of MAXIM PHARMACEUTICALS, INC. hereby 
certifies that in accordance with the terms and conditions of the Loan and 
Security Agreement between Borrower and Bank (the "Agreement"), (i) Borrower 
is in complete compliance for the period ending ______________ with all 
required covenants except as noted below and (ii) all representations and 
warranties of Borrower stated in the Agreement are true and correct in all 
material respects as of the date hereof.  Attached herewith are the required 
documents supporting the above certification.  The Officer further certifies 
that these are prepared in accordance with Generally Accepted Accounting 
Principles (GAAP) and are consistently applied from one period to the next 
except as explained in an accompanying letter or footnotes.  The Officer 
expressly acknowledges that no borrowings may be requested by the Borrower at 
any time or date of determination that Borrower is not in compliance with any 
of the terms of the Agreement, and that  such compliance is determined not 
just  at the date this certificate is delivered.

     PLEASE INDICATE COMPLIANCE STATUS BY CIRCLING YES/NO UNDER "COMPLIES" 
COLUMN.

     REPORTING COVENANT               REQUIRED                         COMPLIES
     ------------------               --------                         --------
     Monthly financial statements     Monthly within 30 days           Yes   No
     Annual (CPA Audited)             FYE within 120 days              Yes   No
     [10Q and 10K                     Within 5 days after filing       Yes   No
                                      with the SEC]

     FINANCIAL COVENANT               REQUIRED         ACTUAL          COMPLIES
     ------------------               --------         ------          --------
Maintain on a Monthly Basis:

Remaining Months Liquidity            12 Months        _____ Months    Yes   No



                                                       BANK USE ONLY
                                            RECEIVED BY:____________________
                                            DATE:________________
                                            REVIEWED BY:____________________
                                            COMPLIANCE STATUS:  YES/NO


COMMENTS REGARDING EXCEPTIONS:
Sincerely,
_______________________ Date:_______________
SIGNATURE
________________________ 
TITLE



                                       1


<PAGE>


                         AGREEMENT TO PROVIDE INSURANCE

GRANTOR:    Maxim Pharmaceuticals, Inc.          BANK:     Silicon Valley Bank
            ---------------------------

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

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

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

     FAILURE TO PROVIDE INSURANCE.  Grantor agrees to deliver to Bank, on or 
before closing, evidence of the required insurance as provided above, with an 
effective date of MARCH ___, 1997, or earlier.  Grantor acknowledges and 
agrees that if Grantor fails to provide any required insurance or fails to 
continue such insurance in force, Bank may do so at Grantor's expense as 
provided in the Loan and Security Agreement.  The cost of such insurance, at 
the option of Bank, shall be payable on demand or shall be added to the 
indebtedness as provided in the security document.  GRANTOR ACKNOWLEDGES THAT 
IF BANK SO PURCHASES ANY SUCH INSURANCE, THE INSURANCE WILL PROVIDE LIMITED 
PROTECTION AGAINST PHYSICAL DAMAGE TO THE COLLATERAL, UP TO THE BALANCE OF 
THE LOAN; HOWEVER, GRANTOR'S EQUITY IN THE COLLATERAL MAY NOT BE INSURED.  IN 
ADDITION, THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY 
DAMAGE INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAL 
RESPONSIBILITY LAWS.

     AUTHORIZATION.  For purposes of insurance coverage on the Collateral, 
Grantor authorizes Bank to provide to any person (including any insurance 
agent or company) all information Bank deems appropriate, whether regarding 
the Collateral, the loan or other financial accommodations, or both.

     GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO 
PROVIDE INSURANCE AND AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED 
MARCH 15, 1997.

GRANTOR:

x_/s/ DALE A. SANDER_____________________________ 
  Authorized Officer


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


                                       2

<PAGE>


                         CORPORATE BORROWING RESOLUTION

BORROWER:  MAXIM PHARMACEUTICALS, INC.     BANK:   SILICON VALLEY BANK
           ___________________________             ____________________________

     I, THE UNDERSIGNED SECRETARY OR ASSISTANT SECRETARY OF MAXIM 
PHARMACEUTICALS, INC. ("BORROWER"), HEREBY CERTIFY that Borrower is a 
corporation duly organized and existing under and by virtue of the laws of 
the State of Delaware.

     I FURTHER CERTIFY that at a meeting of the Directors of Borrower (or by 
other duly authorized corporate action in lieu of a meeting), duly called and 
held, at which a quorum was present and voting, the following resolutions 
were adopted.

     BE IT RESOLVED, that ANY ONE (1) of the following named officers, 
employees, or agents of Borrower, whose actual signatures are shown below:

          NAMES               POSITIONS             ACTUAL SIGNATURES
          -----               ---------             -----------------
 Dale A. Sander        Chief Financial Officer      /s/ DALE A. SANDER
---------------------  -----------------------      ----------------------
 Larry G. Stambaugh    President and CEO            /s/ LARRY G. STAMBAUGH
---------------------  -----------------------      ----------------------
---------------------  -----------------------      ----------------------
---------------------  -----------------------      ----------------------
---------------------  -----------------------      ----------------------

acting for and on behalf of Borrower and as its act and deed be, and they 
hereby are, authorized and empowered:

          BORROW MONEY.  To borrow from time to time from Silicon Valley Bank
          ("Bank"), on such terms as may be agreed upon between the officers of
          Borrower and Bank, such sum or sums of money as in their judgment
          should be borrowed.

          EXECUTE LOAN DOCUMENTS.  To execute and deliver to Bank the loan
          documents of Borrower, on Bank's forms, at such rates of interest and
          on such terms as may be agreed upon, evidencing the sums of money so
          borrowed or any indebtedness of Borrower to Bank, and also to execute
          and deliver to Bank one or more renewals, extensions, modifications,
          refinancings, consolidations, or substitutions for one or more of the
          loan documents, or any portion of the loan documents.

          GRANT SECURITY.  To grant a security interest to Bank in any of
          Borrower's assets, which security interest shall secure all of
          Borrower's obligations to Bank

          NEGOTIATE ITEMS.  To draw, endorse, and discount with Bank all drafts,
          trade acceptances, promissory notes, or other evidences of
          indebtedness payable to or belonging to Borrower or in which Borrower
          may have an interest, and either to receive cash for the same or to
          cause such proceeds to be credited to the account of Borrower with
          Bank, or to cause such other disposition of the proceeds derived
          therefrom as they may deem advisable.

          LETTERS OF CREDIT.  To execute letter of credit applications and other
          related documents pertaining to Bank's issuance of letters of credit.

          FOREIGN EXCHANGE CONTRACTS.  To execute and deliver foreign exchange
          contracts, either spot or forward, from time to time, in such amount
          as, in the judgment of the officer or officers herein authorized.



<PAGE>


          ISSUE WARRANTS.  To issue warrants to purchase Borrower's capital
          stock, for such class, series and number, and on such terms, as an
          officer of Borrower shall deem appropriate.

          FURTHER ACTS.  In the case of lines of credit, to designate additional
          or alternate individuals as being authorized to request advances
          thereunder, and in all cases, to do and perform such other acts and
          things, to pay any and all fees and costs, and to execute and deliver
          such other documents and agreements, including agreements waiving the
          right to a trial by jury, as they may in their discretion deem
          reasonably necessary or proper in order to carry into effect the
          provisions of these Resolutions.

     BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to 
these Resolutions and performed prior to the passage of these resolutions are 
hereby ratified and approved, that these Resolutions shall remain in full 
force and effect and Bank may rely on these Resolutions until written notice 
of their revocation shall have been delivered to and received by Bank.  Any 
such notice shall not affect any of Borrower's agreements or commitments in 
effect at the time notice is given.

     I FURTHER CERTIFY that the persons named above are principal officers of 
the Corporation and occupy the positions set opposite their respective names; 
that the foregoing Resolutions now stand of record on the books of the 
Corporation; and that they are in full force and effect and have not been 
modified or revoked in any manner whatsoever.

     IN WITNESS WHEREOF, I have hereunto set my hand on March___, 1997 and 
attest that the signatures set opposite the names listed above are their 
genuine signatures.

CERTIFIED TO AND ATTESTED BY:

X ___/s/ DALE A. SANDER________________________
     Secretary or Assistant Secretary

X ______________________________________________



                                       2