<PAGE>

                                                              EXHIBIT 10.40

SILICON VALLEY BANK


                          LOAN AND SECURITY AGREEMENT

                                by and between

                              SILICON VALLEY BANK

                                    as Bank


                                      and


                        VISTA INFORMATION SOLUTIONS, INC.

                                   as Borrower



                                Dated April 7, 1998

<PAGE>

                                 TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                           Page
                                                                           ----
<S>    <C>                                                                 <C>
1.     DEFINITIONS AND CONSTRUCTION......................................  1
       1.1  Definitions..................................................  1
       1.2  Accounting and Other Terms...................................  7
2.     LOAN AND TERMS OF PAYMENT.........................................  7
       2.1  Credit Extensions............................................  7
       2.2  Overadvances.................................................  9
       2.3  Interest Rates, Payments, and Calculations...................  9
       2.4  Crediting Payments...........................................  10
       2.5  Fees.........................................................  10
       2.6  Additional Costs.............................................  10
       2.7  Terms........................................................  11
3.     CONDITIONS OF LOANS...............................................  11
       3.1  Conditions Precedent to Initial Credit Extension.............  11
       3.2  Conditions Precedent to all Credit Extensions................  11
4.     CREATION OF SECURITY INTEREST.....................................  12
       4.1  Grant of Security Interest...................................  12
       4.2  Delivery of Additional Documentation Required................  12
       4.3  Right to Inspect.............................................  12
5.     REPRESENTATIONS AND WARRANTIES....................................  12
       5.1  Due Organization and Qualification...........................  12
       5.2  Due Authorization; No Conflict...............................  12
       5.3  No Prior Encumbrances........................................  12
       5.4  Bona Fide Eligible Accounts..................................  12
       5.5  Merchantable Inventory.......................................  12
       5.6  Intellectual Property........................................  13
       5.7  Name: Location of Chief Executive Office.....................  13
       5.8  Litigation...................................................  13
       5.9  No Material Adverse Change in Financial Statements...........  13
       5.10 Solvency.....................................................  13
       5.11 Regulatory Compliance........................................  13
       5.12 Environmental Condition......................................  13
       5.13 Taxes........................................................  14
       5.14 Subsidiaries.................................................  14
       5.15 Government Consents..........................................  14
       5.16 Full Disclosure..............................................  14
6.     AFFIRMATIVE COVENANTS.............................................  14
       6.1  Good Standing................................................  14
       6.2  Government Compliance........................................  14
       6.3  Financial Statements, Reports, Certificates..................  14
       6.4  Inventory; Returns...........................................  15
       6.5  Taxes........................................................  15
       6.6  Insurance....................................................  15
</TABLE>

                                       -i-


<PAGE>


                             TABLE OF CONTENTS (CONTD)
<TABLE>
<CAPTION>
                                                                           Page
                                                                           ----
<S>    <C>                                                                 <C>
       6.7  Principal Depository.........................................  16
       6.8  Quick Ratio..................................................  16
       6.9  Debt-Net Worth Ratio.........................................  16
       6.10 Tangible Net Worth...........................................  16
       6.11 Profitability................................................  16
       6.12 Registration of Intellectual Property Rights.................  16
       6.13 Further Assurances...........................................  17
7.     NEGATIVE COVENANTS
       7.1  Dispositions.................................................  17
       7.2  Changes in Business, Ownership, or Management,
            Business Locations...........................................  17
       7.3  Merges or Acquisitions.......................................  17
       7.4  Indebtedness.................................................  17
       7.5  Encumbrances.................................................  17
       7.6  Distributions................................................  17
       7.7  Investments; Loans; Guarantees...............................  17
       7.8  Transactions with Affiliates.................................  18
       7.9  Intellectual Property Agreements.............................  18
       7.10 Subordinated Debt............................................  18
       7.11 Inventory....................................................  18
       7.12 Compliance...................................................  18
8.     EVENTS OF DEFAULT.................................................  18
       8.1  Payment Default..............................................  18
       8.2  Covenant Default.............................................  18
       8.3  Material Adverse Change......................................  19
       8.4  Attachment...................................................  19
       8.5  Insolvency...................................................  19
       8.6  Other Agreements.............................................  19
       8.7  Subordinated Debt............................................  19
       8.8  Judgements...................................................  19
       8.9  Misrepresentations...........................................  19
       8.10 Guaranty.....................................................  19
9.     BANK'S RIGHTS AND REMEDIES........................................  20
       9.1  Rights and Remedies..........................................  21
       9.2  Power of Attorney............................................  21
       9.3  Accounts Collection..........................................  21
       9.4  Bank Expenses................................................  21
       9.5  Bank's Liability for Collateral..............................  22
       9.6  RemediesCumulative...........................................  22
       9.7  Demand; Protest..............................................  22
10.    NOTICES...........................................................  22
11.    CHOICE OF LAW AND VENUE; JURY WAIVER..............................  23
12.    GENERAL PROVISIONS................................................  23
       12.1 Successors and Assigns.......................................  23
       12.2 Indemnifications.............................................  23
</TABLE>

                                       -ii-

<PAGE>

<TABLE>
<CAPTION>
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                                                                           ----
<S>    <C>                                                                 <C>
       12.3 Time of Essence..............................................  23
       12.4 Severability of Provisions...................................  23
       12.5 Amendments in Writing, Integration...........................  23
       12.6 Counterparts.................................................  24
       12.7 Survival.....................................................  24
</TABLE>



                                      -iii-




<PAGE>

                          LOAN AND SECURITY AGREEMENT

This LOAN AND SECURITY AGREEMENT is entered into as of April 7, 1998 by and 
between SILICON VALLEY BANK ("Bank") and VISTA INFORMATION SOLUTIONS, INC., a 
Minnesota corporation ("Borrower").

                                  RECITALS

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

                                 AGREEMENT

The parties agree as follows:

1.  DEFINITIONS AND CONSTRUCTION

    1.1  Definitions.  As used in this Agreement; the following terms shall 
have the following definitions:

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

         "Advance" or "Advances" means a loan advance under the Committed 
Revolving Line.

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

         "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.

         "Borrowing Base" means an amount equal to 80% of Eligible Accounts, 
as determined by Bank with reference to the most recent Borrowing Base 
Certificate delivered by Borrower.

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

                                     -1-


<PAGE>

         "Closing Date" means the date of this Agreement.

         "Code" means the California Uniform Commercial Code.

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

         "Committed Revolving Line" means a credit extension of up to 
$1,500,000.

         "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 Card Sublimit" shall have the meaning set forth in Section 
2.1.3 hereof.

         "Credit Extension" means each Advance, Letter of Credit, 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.

         "Eligible Accounts" means those Accounts that arise in the ordinary 
course of Borrower's business that comply with all of Borrower's 
representations and warranties to Bank set forth in Section 5.4; PROVIDED, 
that standards of eligibility may be fixed and revised from time to time by 
Bank in Bank's reasonable judgment and upon notification thereof to Borrower 
in accordance with the provisions hereof. Unless otherwise agreed to by Bank 
in writing, Eligible Accounts shall not include the following:

                                      -2-

<PAGE>

              (a)  Accounts that the account debtor has failed to pay within 
ninety (90) days of invoice date;

              (b)  Accounts with respect to an account debtor, fifty percent 
(50%) of whose Accounts the account debtor has failed to pay within ninety 
(90) days of invoice date;

              (c)  Accounts with respect to an account debtor, including 
Affiliates, whose total obligations to Borrower exceed twenty-five percent 
(25%) of all Accounts, to the extent such obligations exceed the 
aforementioned percentage, except as approved in writing by Bank;

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

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

              (f)  Accounts with respect to which Borrower is liable to the 
account debtor, but only to the extent of any amounts owing to the account 
debtor (sometimes referred to as "contra" accounts, e.g. accounts payable, 
customer deposits, credit accounts etc.);

              (g)  Accounts generated by demonstration or promotional 
equipment, or with respect to which goods are placed on consignment, 
guaranteed sale, sale or return, sale on approval, bill and hold, or other 
terms by reason of which the payment by the account debtor may be conditional;

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

              (i)  Accounts with respect to which the account debtor disputes 
liability or makes any claim with respect thereto as to which Bank believes, 
in its sole discretion, that there may be a basis for dispute (but only to 
the extent of the amount subject to such dispute or claim), or is subject to 
any Insolvency Proceeding, or becomes insolvent, or goes out of business; and

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

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

         "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.

                                       -3-

<PAGE>

          "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 use 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.

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


                                       4
<PAGE>

         "Letter of Credit" means a letter of credit or similar undertaking 
issued by Bank pursuant to Section 2.1.2.

         "Letter of Credit Reserve" has the meaning set forth in Section 
2.1.2.

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

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

         "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 the Revolving Maturity Date.

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

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

         "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 the first calendar day of each month commencing 
on the first such date after the Closing Date and ending on the Revolving 
Maturity Date.

         "Permitted Distributions" shall have the meaning ascribed to such 
term in Section 7.6 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;


                                      -5-

<PAGE>

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

              and

              (e)  Indebtedness secured by Permitted Liens, provided that 
    such Indebtedness incurred in the future for the purchase price of or 
    lease of equipment shall not exceed, in the aggregate a total of 
    $1,000,000 at any time outstanding.

         "Permitted Investment" means:

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

              (b)  (i)  marketable direct obligations issued or 
    unconditionally guaranteed by the United States of America or any agency 
    or any State thereof maturing within one (1) year from the date of 
    acquisition thereof, (ii) commercial paper maturing no more than one (1) 
    year from the date of creation thereof and currently having the highest 
    rating obtainable from either Standard & Poor's Corporation or Moody's 
    Investors Service, Inc., and (iii) certificates of deposit maturing no 
    more than one (1) year from the date of investment therein issued by Bank.

         "Permitted Liens" means the following:

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

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

              (c)  Liens (i) upon or in any Equipment acquired or held by 
    Borrower or any of its Subsidiaries to secure the purchase price of such 
    Equipment or indebtedness incurred solely for the purpose of financing 
    the acquisition of such Equipment, or (ii) existing on such equipment at 
    the time of its acquisition, PROVIDED that the Lien is confined solely to 
    the property so acquired and improvements thereon, and the proceeds of 
    such equipment;

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

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

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


                                      -6-

<PAGE>

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

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

        "Revolving Maturity Date" means the date that is one day prior to the 
first anniversary of the date of this Agreement.

        "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.

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

        "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 Assignor 
connected with and symbolized by such trademarks.

    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 all Credit 
Extensions at rates in accordance with the terms hereof.

        2.1.1 Advances


                                      -7-


 
<PAGE>

               (a) Subject to and upon the terms and conditions of this 
     Agreement. Bank agrees to make Advances to Borrower in an aggregate 
     outstanding amount not to exceed (i) the Committed Revolving Line or the 
     Borrowing Base, whichever is less, minus (ii) the face amount of all 
     outstanding Letters of Credit (including drawn but unreimbursed Letters 
     of Credit), minus (iii) the Credit Card Sublimit. Subject to the terms 
     and conditions of this Agreement, amounts borrowed pursuant to this 
     Section 2.1 may be repaid and reborrowed at any time during the term of 
     this Agreement.

               (b) Whenever Borrower desires an Advance, Borrower will notify 
     Bank by facsimile transmission or telephone no later than 3:00 p.m. 
     Pacific time, on the Business Day that the Advance is to be made. Each 
     such notification shall be promptly confirmed by a Payment/Advance Form 
     in substantially the form of EXHIBIT B hereto. Bank is authorized to 
     make Advances under this Agreement, based upon instructions received 
     from a Responsible Officer or a designee of a Responsible Officer, or 
     without instructions if in Bank's discretion such Advances are necessary 
     to meet Obligations which have become due and remain unpaid. Bank shall 
     be entitled to rely on any telephone notice given by a person who Bank 
     reasonably believes to be a Responsible Officer or a designee thereof, 
     and Borrower shall indemnify and hold Bank harmless for any damages or 
     loss suffered by Bank as a result of such reliance. Bank will credit the 
     amount of Advances made under this Section 2.1 to Borrower's deposit 
     account.

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

          2.1.2 Letters of Credit.

               (a) Subject to the terms and conditions of this Agreement, 
     Bank agrees to issue or cause to be issued Letters of Credit for the 
     account of Borrower in an aggregate outstanding face amount not to 
     exceed (i) the lesser of the Committed Revolving Line or the Borrowing 
     Base, whichever is less, minus (ii) the then outstanding principal 
     balance of the Advances, minus (iii) the Credit Card Sublimit; PROVIDED 
     that the face amount of outstanding Letters of Credit (including drawn 
     but unreimbursed Letters of Credit and any Letter of Credit Reserve) 
     shall not in any case exceed $250,000. Each Letter of Credit shall have 
     an expiry date no later than twelve months beyond the then applicable 
     Revolving Maturity Date, PROVIDED that on the Maturity Date or any 
     earlier date of termination Borrower shall immediately provide to and 
     pledge to the Bank immediately available funds in the outstanding 
     aggregate amount of Letters of Credit (including drawn but unreimbursed 
     Letters of Credit) and Borrower shall execute the Bank's standard form 
     of cash pledge agreement in connection therewith. All Letters of Credit 
     shall be, in form and substance, acceptable to Bank in its sole 
     discretion and shall be subject to the terms and conditions of Bank's 
     form of standard Application and Letter of Credit Agreement.

               (b) The obligation of Borrower to immediately reimburse Bank 
     for drawings made under Letters of Credit shall be absolute, 
     unconditional and irrevocable, and shall be performed strictly in 
     accordance with the terms of this Agreement and such Letters of Credit, 
     under all circumstances whatsoever. Borrower shall indemnify, defend, 
     protect, and hold Bank harmless from any loss, cost, expense or 
     liability, including, without limitation, reasonable attorney's fees, 
     arising out of or in connection with any Letters of Credit.

               (c) Borrower may request that Bank issue a Letter of Credit 
     payable in a currency other than United States Dollars. If a demand for 
     payment is made under any

                                      -8-

<PAGE>


     such Letter of Credit, Bank shall treat such demand as an Advance to 
     Borrower of the equivalent of the amount thereof (plus cable charges) in 
     United States currency at the then prevailing rate of exchange in San 
     Francisco, California, for sales of that other currency for cable 
     transfer to the country of which it is the currency.

               (d)  Upon the issuance of any letter of credit payable in a 
     currency other than United States Dollars, Bank shall create a reserve 
     under the Committed Revolving Line for letters of credit against 
     fluctuations in currency exchange rates, in an amount equal to ten 
     percent (10%) of the face amount of such letter of credit. The amount of 
     such reserve may be amended by Bank from time to time to account for 
     fluctuations in the exchange rate. The availability of funds under the 
     Committed Revolving Line shall be reduced by the amount of such reserve 
     for so long as such letter of credit remains outstanding.

          2.1.3 CREDIT CARD SUBLIMIT.

               (a) Up to $25,000 of the loan availability (the "Credit Card 
     Sublimit") may be utilized for advances under corporate credit cards to 
     be issued by the Bank for Borrower, provided that at the time of the 
     issuance of any such credit cards Borrower has available to it Advances 
     in an amount equal to or greater than $25,000. Further, after the 
     issuance of any such credit cards, the loan availability hereunder shall 
     be permanently reduced by $25,000 while any of such credit cards remain 
     available for use or there remain any outstanding Obligations thereunder.

     2.2  OVERADVANCES. If, at any time or for any reason, the amount of 
Obligations owed by Borrower to Bank pursuant to Section 2.1.1, 2.1.2 and 
2.1.3 of this Agreement is greater than the lesser of (i) the Committed 
Revolving Line or (ii) the Borrowing Base, Borrower shall immediately pay to 
Bank, in cash, the amount of such excess.

     2.3  INTEREST RATES, PAYMENTS AND CALCULATIONS.

          (a)  INTEREST RATE. Except as set forth in Section 2.3(b), any 
Advances shall bear interest, on the average daily balance thereof, at a per 
annum rate equal to .50% above the Prime Rate, provided that on and after 
such time that the Borrower has earned positive net profit (after taxes) for 
one quarter, the above interest rate shall be reduced to a per annum rate 
equal to .25% above the Prime Rate.

          (b)  DEFAULT RATE. All Obligations shall bear interest, from and 
after the occurrence of an Event of Default, at a rate equal to three (3) 
percentage points above the interest rate applicable immediately prior to the 
occurrence of the Event of Default.

          (c)  PAYMENT. Interest hereunder shall be due and payable on each 
Payment Date, Borrower hereby authorizes Bank to debit any accounts with 
Bank, including, without limitation, Account Number ____________ for payments 
of principal and interest due on the Obligations and any other amounts owing 
by Borrower to Bank. Bank will notify Borrower of all debits which Bank has 
made against Borrower's accounts. Any such debits against Borrower's accounts 
in no way shall be deemed a 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 interests hereunder shall be 
increased or decreased effective as of 


                                       9
<PAGE>

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 delays elapsed.

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

    2.5  FEES.  Borrower shall pay to Bank the following:

         (a)  FACILITY FEE.  A Facility Fee equal to $3,750, 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

                                   -10-

<PAGE>

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:

         (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)  an intellectual property security agreement;

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

         (e)  insurance certificate;

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

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

         (h)  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; and

         (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).


                                      -11-
<PAGE>

4. CREATION OF SECURITY INTEREST

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

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

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

5. REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants as follows:

     5.1 DUE ORGANIZATION AND QUALIFICATION. Borrower 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/Certificate 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 BONA FIDE ELIGIBLE ACCOUNTS. The Eligible Accounts are bona fide 
existing obligations. The service or property giving rise to such Eligible 
Accounts has been performed or delivered to the account debtor or to the 
account debtor's agent for immediate shipment to and unconditional acceptance 
by the account debtor. Borrower has not received notice or actual or imminent 
Insolvency Proceedings of any account debtor whose accounts are included in 
any Borrowing Base Certificate as an Eligible Account.

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

                                     -12-

<PAGE>

     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. 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.

     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


                                       13

<PAGE>

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.

    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 ninety 
(90) days after the end of Borrower's fiscal year, audited consolidated 
financial statements of Borrower prepared in accordance with GAAP, 
consistently applied, together with an unqualified opinion on such accordance 
with GAAP, consistently applied, together with an unqualified opinion on such

                                    -14-

<PAGE>


financial statements of an independent certified public accounting firm 
reasonably acceptable to Bank; (c) [reserved]; (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; (e) 
prompt notice of any material change in the composition of the Intellectual 
Property Collateral, including, but not limited to, any subsequent ownership 
right of the Borrower in or any Copyright, Patent or Trademark not specified 
in any intellectual property security agreement between Borrower and Bank or 
knowledge of an event that materially adversely effects the value of the 
Intellectual Property Collateral; and (f) such budgets, sales projections, 
operating plans or other financial information as Bank may reasonably request 
from time to time.

     Within TWENTY (20) days after the last day of each MONTH, Borrower shall 
deliver to Bank a Borrowing Base Certificate signed by a Responsible Officer 
in substantially the form of EXHIBIT C hereto, together with aged listings of 
accounts receivable and accounts payable.

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

     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 business 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


                                        15
<PAGE>


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  QUICK RATIO.  Borrower shall maintain, as of the last day of each 
calendar month, a ratio of Quick Assets to Current Liabilities of at least 
1.25 to 1.0. For purposes of the foregoing, however, Current Liabilities 
shall not include deferred revenues.

     6.9  DEBT-NET WORTH RATIO.  Borrower shall maintain, as of the last day 
of each calendar month, a ratio of Total Liabilities less Subordinated Debt 
to Tangible Net Worth plus Subordinated Debt of not more than 1.50 to 1.0. For 
purposes of the foregoing, however, deferred revenues shall not be taken into 
account in computing Total Liabilities or Tangible Net Worth.

     6.10 TANGIBLE NET WORTH.  Borrower shall maintain, as of the last day of 
each calendar month, a Tangible Net Worth of not less than $1,750,000.

     6.11 PROFITABILITY.  For the fiscal quarter ending December 31, 1997, 
Borrower shall attain positive earnings before interest, taxes, depreciation 
and amortization. Thereafter, Borrower shall not incur a loss (after taxes) 
for any fiscal quarter.

     6.12 REGISTRATION OF INTELLECTUAL PROPERTY RIGHTS.

          (a)  Borrower shall register or cause to be registered (to the 
extent not already registered) with the United States Patent and Trademark 
Office or the United States Copyright Office, as applicable, those 
intellectual property rights listed on Exhibits A, B and C to the 
Intellectual Property Security Agreement delivered to Bank by Borrower in 
connection with this Agreement within thirty (30) days of the date of this 
Agreement. Borrower shall register or cause to be registered with the United 
States Patent and Trademark or the United States Copyright Office, as 
applicable, those additional intellectual property rights developed or 
acquired by Borrower from time to time in connection with any product prior 
to the sale or licensing of such product to any third party, including 
without limitation revisions or additions to the intellectual property rights 
listed on such Exhibits A, B and C.

          (b)  Borrower shall execute and deliver such additional instruments 
and documents from time to time as Bank shall reasonably request to perfect 
Bank's security interest in the Intellectual Property Collateral.

          (c)  Borrower shall (i) protect, defend and maintain the validity 
and enforceability of the Trademarks, Patents, Copyrights, and Mask Works, 
(ii) use its best efforts to detect infringements of the Trademarks, Patents, 
Copyrights and Mask Works and promptly advise Bank in writing of material 
infringements detected and (iii) not allow any Trademarks, Patents, 
Copyrights, or Mask Works to be abandoned, forfeited or dedicated to the 
public without the written consent of Bank, which shall not be unreasonably 
withheld, unless Bank determines that reasonable business practices suggest 
that abandonment is appropriate.

          (d)  Bank shall have the right, but not the obligation, to take, at 
Borrower's sole expense, any actions that Borrower is required under this 
Section 6.14 to take but which Borrower

                                     -16-


<PAGE>

fails to take, after fifteen (15) days' notice to Borrower. Borrower shall 
reimburse and indemnify Bank for all reasonable costs and reasonable expenses 
incurred in the reasonable exercise of its rights under this Section 6.14.

     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% or management. 
Borrower will not, without at least thirty (30) days prior written 
notification to Bunk, 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, 
except that the Borrower may merge or consolidate with another corporation if 
the Borrower is the surviving corporation in the merger and the aggregate 
value of the assets acquired in the merger does not exceed 25% of Borrower's 
Tangible Net Worth as of the end of the month prior to the effective date of 
the merger, and the assets of the corporation acquired in the merger are not 
subject to any liens or encumbrances, except Permitted Liens.

     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 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 if, both before and after the Permitted Distributions 
have been given effect, no Event of Default exists and no event, which with 
notice or passage of time, or both, would constitute an Event of Default, 
occurs, the Borrower may pay dividends on its Series E and F Preferred Stock 
in an aggregate amount for both such series of stock not to exceed $175,000 
per quarter (the "Permitted Distributions").

     7.7 INVESTMENTS; LOANS; GUARANTEES. 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

                                     -17-

<PAGE>

Investments, or make any loans of any money or any other assets to any 
Person, or guarantee or otherwise become liable with respect to the 
obligations of any other Person.

     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   INTELLECTUAL PROPERTY AGREEMENTS. Borrower shall not permit the 
inclusion in any material contract to which it becomes a party of any 
provisions that could or might in any way prevent the creation of a security 
interest in Borrower's rights and interests in any property included within 
the definition of the Intellectual Property Collateral acquired under such 
contracts, except to the extent that such provisions are necessary in 
Borrower's exercise of its reasonable business judgement, in which case 
written notice thereof shall be given to Bank.

     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.

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, 6.8, 6.9, 6.10, 6.11, 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


                                      - 18-

<PAGE>

failed to cure such default within ten (10) days after the occurrence thereof; 
provided, however, that if the default cannot by its nature be cured within 
the ten (10) day period or cannot after diligent attempts by Borrower be 
cured within such ten (10) day period, and such default is likely to be cured 
within a reasonable time, then Borrower shall have an additional reasonable 
period (which shall not in any case exceed thirty (30) days) to attempt to 
cure such default, and within such reasonable time period the failure to have 
cured such default shall not be deemed an Event of Default (provided that no 
Advances will be required to be made during such cure period);

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

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

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

    8.6  OTHER AGREEMENTS. If there is a default in any agreement to which 
Borrower is a 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 fails to 
perform any obligation under any guaranty


                                     -19-     
<PAGE>

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.

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)   Demand that Borrower (i) deposit cash with Bank in an amount 
equal to the amount of any Letters of Credit remaining undrawn, as collateral 
security for the repayment of any future drawings under such Letters of 
Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) 
pay in advance all Letters of Credit fees scheduled to be paid or payable 
over the remaining term of the Letters of Credit;

          (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 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


                                     -20-

<PAGE>

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; and

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

         (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) to modify, in its sole discretion, any intellectual property security 
agreement entered into between Borrower and Bank without first obtaining 
Borrower's approval of or signature to such modification by amending Exhibit 
A, Exhibit B, Exhibit C, and Exhibit D, thereof, as appropriate, to include 
reference to any right, title or interest in any Copyrights, Patents, 
Trademarks, Mask Works acquired by Borrower after the execution hereof or to 
delete any reference to any right, title or interest in any Copyrights, 
Patents, Trademarks, or Mask Works in which Borrower no longer has or claims 
any right, title or interests; (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) to transfer the Intellectual Property Collateral into the name 
of Bank or a third party to the extent permitted under the California 
Uniform Commercial Code] provided Bank may exercise such power of attorney to 
sign the name of Borrower on any of the documents described in Section 4.2 
regardless of whether an Event of Default has occurred. The appointment of 
Bank as Borrower's attorney in fact, and each and every one of Bank's rights 
and powers, being coupled with an interest, is irrevocable until all of the 
Obligations have been fully repaid and performed and Bank's obligation to 
provide advances hereunder is terminated.

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

    9.4  BANK EXPENSES.  If Borrower fails to pay any amounts or furnish any 
required proof of payment due to third persons or entities, as required under 
the terms of this Agreement,

                                        -21-

<PAGE>

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 Committee 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 information 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:

    If to Borrower    Vista Information Solutions, Inc.
                      5060 Shoreham Place, Suite 300
                      San Diego, California 92122
                      Attn: Steve Hamilton, CFO
                      FAX: 619-450-6185

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

                                          -22-


<PAGE>


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 AND VENUE; JURY WAIVER

     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 WAIVERS 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 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, 
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.


                                     23



<PAGE>

    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 the actions that may be brought against the Bank have run.

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

                                        VISTA INFORMATION SOLUTIONS, INC.

                                        By:           [illegible]
                                            -------------------------------
                                        Title:
                                               ----------------------------

                                        By:           [illegible]
                                            -------------------------------
                                        Title:
                                               ----------------------------

                                        SILICON VALLEY BANK

                                        By:          [illegible]
                                            -------------------------------
                                        Title:    
                                               ----------------------------









                                  -24-