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                        EX-10.1
                 Loan and Security Agreement


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                           LOAN AND SECURITY AGREEMENT

                                 by and between

                        DIRECT SALES INTERNATIONAL, INC.

                                       and

                             COAST BUSINESS CREDIT,
                       a division of Southern Pacific Bank

                          Dated as of January 28, 2000

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                                Table of Contents
                                                                           Page

1.   DEFINITIONS.............................................................1

2.   CREDIT FACILITIES.......................................................4
      2.1   Loans............................................................4

3.   INTEREST AND FEES.......................................................5
      3.1   Interest.........................................................5
      3.2   Fees.............................................................5

4.   SECURITY INTEREST.......................................................5

5.   CONDITIONS PRECEDENT....................................................5
      5.1   Status of Accounts at Closing....................................5
      5.2   Minimum Availability.............................................5
      5.3   Landlord Waiver..................................................5
      5.4   Intentionally Deleted............................................5
      5.5   Executed Agreement...............................................5
      5.6   Opinion of Borrower's Counsel....................................5
      5.7   Priority of Coast's Liens........................................5
      5.8   Insurance........................................................5
      5.9   Borrower's Existence.............................................5
      5.10  Organizational Documents.........................................6
      5.11  Taxes............................................................6
      5.12  Due Diligence....................................................6
      5.13  Year 2000 Problem Assessment Certificate.........................6
      5.14  Other Documents and Agreements...................................6

6.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWER...............6
      6.1   Existence and Authority..........................................6
      6.2   Name; Trade Names and Styles.....................................6
      6.3   Place of Business; Location of Collateral........................6
      6.4   Title to Collateral; Permitted Liens.............................7
      6.5   Maintenance of Collateral........................................7
      6.6   Books and Records................................................7
      6.7   Financial Condition, Statements and Reports......................7
      6.8   Tax Returns and Payments; Pension Contributions..................7
      6.9   Compliance with Law..............................................7
      6.10  Litigation.......................................................8
      6.11  Use of Proceeds..................................................8
      6.12  Year 2000 Compliance.............................................8

7.   RECEIVABLES.............................................................8
      7.1   Representations Relating to Receivables..........................8
      7.2   Representations Relating to Documents and Legal Compliance.......8
      7.3   Schedules and Documents relating to Receivables..................8
      7.4   Collection of Receivables........................................8
      7.5   Remittance of Proceeds...........................................9
      7.6   Disputes.........................................................9
      7.7   Intentionally Deleted............................................9
      7.8   Verification.....................................................9
      7.9   No Liability.....................................................9


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                                Table of Contents
                                   (contiued)

                                                                           Page

8.   ADDITIONAL DUTIES OF THE BORROWER.......................................9
      8.1   Financial and Other Covenants....................................9
      8.2   Insurance........................................................9
      8.3   Reports.........................................................10
      8.4   Access to Collateral, Books and Records.........................10
      8.5   Negative Covenants..............................................10
      8.6   Litigation Cooperation..........................................11
      8.7   Further Assurances..............................................11

9.   TERM...................................................................11
      9.1   Maturity Date...................................................11
      9.2   Early Termination...............................................11
      9.3   Payment of Obligations..........................................11

10.  EVENTS OF DEFAULT AND REMEDIES.........................................11
      10.1  Events of Default...............................................11
      10.2  Remedies........................................................13
      10.3  Standards for Determining Commercial Reasonableness.............14
      10.4  Power of Attorney...............................................14
      10.5  Application of Proceeds.........................................15
      10.6  Remedies Cumulative.............................................15

11.  GENERAL PROVISIONS.....................................................16
      11.1  Interest Computation............................................16
      11.2  Application of Payments.........................................16
      11.3  Charges to Accounts.............................................16
      11.4  Monthly Accountings.............................................16
      11.5  Notices.........................................................16
      11.6  Severability....................................................16
      11.7  Integration.....................................................16
      11.8  Waivers.........................................................16
      11.9  No Liability for Ordinary Negligence............................17
      11.10 Amendment.......................................................17
      11.11 Time of Essence.................................................17
      11.12 Attorneys Fees, Costs and Charges...............................17
      11.13 Benefit of Agreement............................................17
      11.14 Publicity.......................................................18
      11.15 Paragraph Headings; Construction................................18
      11.16 Governing Law; Jurisdiction; Venue..............................18
      11.17 Mutual Waiver of Jury Trial.....................................18


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Coast

Loan and Security Agreement

Borrower: Direct Sales International, Inc.

Address:  2550 Heritage Court, Suite 106
          Atlanta, Georgia

Date:     January 28, 2000

THIS LOAN AND SECURITY AGREEMENT is entered into on the above date between COAST
BUSINESS CREDIT, a division of Southern Pacific Bank ("Coast"), a California
corporation, with offices at 12121 Wilshire Boulevard, Suite 1400, Los Angeles,
California 90025, and the borrower(s) named above (jointly and severally, the
"Borrower"), whose chief executive office is located at the above address
("Borrower's Address"). The Schedule to this Agreement (the "Schedule") shall
for all purposes be deemed to be a part of this Agreement, and the same is an
integral part of this Agreement. (Definitions of certain terms used in this
Agreement are set forth in Section 1 below.

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

      "Account Debtor" means the obligor on a Receivable or General Intangible.

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

      "Audit" means to inspect, audit and copy Borrower's books and records and
the Collateral.

      "Borrower" has the meaning set forth in the introduction to this
Agreement.

      "Borrower's Address" has the meaning set forth in the introduction to this
Agreement.

      "Business Day" means a day on which Coast is open for business, but shall
not include any Saturday, Sunday or any other day upon which banking
institutions in the State of California are required or authorized by law to be
closed.

      "Change of Control" shall be deemed to have occurred at such time as a
"person" or "group" (within the meaning of Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934) (other than the current holders of the
ownership interests in any Borrower or any guarantor of the Obligations) becomes
the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange
Act of 1934), directly or indirectly, as a result of any single transaction, of
more than twenty-five percent (25%) of the total voting power of all classes of
stock or other ownership interests then outstanding of any Borrower or any
guarantor of the Obligations normally entitled to vote in the election of
directors or analogous governing body.

      "Closing Date" date of the initial funding under this Agreement.

      "Coast" has the meaning set forth in the introduction to this Agreement.


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Coast Business Credit                                Loan and Security Agreement
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      "Code" means the Uniform Commercial Code as adopted and in effect in the
State of California from time to time.

      "Collateral" has the meaning set forth in Section 4 hereof.

      "Credit Limit" means the maximum amount of Loans that Coast may make to
Borrower pursuant to the amounts and percentages shown on the Schedule.

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

      "Deposit Account" has the meaning set forth in Section 9105(e) of the
Code.

      "Dollars or $" means United States dollars.

      "Early Termination Fee" means the amount set forth on the Schedule that
Borrower must pay Coast if this Agreement is terminated by Borrower or Coast
pursuant to Section 9.2 hereof.

      "EBITDA" means, in any period, Borrower's consolidated net income for such
period of Borrower determined in accordance with GAAP (other than extraordinary
or non-recurring items including, without limitation, gain on sale of assets,
income relating to foreign exchange, swap or other derivative transactions and
changes in GAAP), plus the following items , to the extent deducted from the
revenues of Borrower in the calculation of net income or loss (i) depreciation,
(ii) amortization of intangibles and any other non-cash items (iii) cash
interest expense (excluding any interest paid in kind) and (iv) tax expense.

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

      "Event of Default" means any of the events set forth in Section 10.1 of
this Agreement.

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

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

      "Inventory" means all of Borrower's now owned and hereafter acquired
goods, merchandise or other personal property, wherever located, to be furnished
under any contract of service or held for sale or lease (including without
limitation all raw materials, work in process, finished goods and goods in
transit, and including without limitation all farm products), and all materials
and supplies of every kind, nature and description which are or might


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Coast Business Credit                                Loan and Security Agreement
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be used or consumed in Borrower's business or used in connection with the
manufacture, packing, shipping, advertising, selling or finishing of such goods,
merchandise or other personal property, and all warehouse receipts, documents of
title and other documents representing any of the foregoing.

      "Investment Property" has the meaning set forth in Section 9115 of the
Code as in effect as of the date hereof.

      "Loan Documents" means this Agreement, the agreements and documents listed
on Section 5 of the Schedule, and any other agreement, instrument or document
executed in connection herewith or therewith.

      "Loans" has the meaning set forth in Section 2.1 hereof.

      "Material Adverse Effect" means a material adverse effect on (i) the
business, assets, condition (financial or otherwise) or results of operations of
Borrower or any subsidiary of Borrower or any guarantor of any of the
Obligations, (ii) the ability of Borrower or any guarantor of any of the
Obligations to perform its obligations under this Agreement (including, without
limitation, repayment of the Obligations as they come due) or (iii) the validity
or enforceability of this Agreement or any other agreement or document entered
into by any party in connection herewith, or the rights or remedies of Coast
hereunder or thereunder.

      "Maturity Date" means the date that this Agreement shall cease to be
effective, as set forth on the Schedule, subject to the provisions of Section
9.1 and 9.2 hereof.

      "Maximum Dollar Amount" has the meaning set forth in Section 2 of the
Schedule.

      "Minimum Monthly Interest" has the meaning set forth in Section 3 of the
Schedule.

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

      "Permitted Liens" means the following:

            (a) purchase money security interests in specific items of
Equipment;

            (b) leases of specific items of Equipment;

            (c) liens for taxes not yet payable;

            (d) additional security interests and liens consented to in writing
by Coast, which consent shall not be unreasonably withheld;

            (e) security interests being terminated substantially concurrently
with this Agreement;

            (f) liens of materialmen, mechanics, warehousemen, carriers, or
other nonconsensual liens arising in the ordinary course of business and
securing obligations which (i) are not delinquent or (ii) which do not exceed
$25,000 in the aggregate;


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            (g) liens incurred in connection with the extension, renewal or
refinancing of the indebtedness secured by liens of the type described above in
clauses (a) or (b) above, provided that any extension, renewal or replacement
lien is limited to the property encumbered by the existing lien and the
principal amount of the indebtedness being extended, renewed or refinanced does
not increase; or

            (h) liens in favor of customs and revenue authorities which secure
payment of customs duties in connection with the importation of goods.

Coast will have the right to require, as a condition to its consent under
subparagraph (d) above, that the holder of the additional security interest or
lien sign an intercreditor agreement on Coast's then standard form, acknowledge
that the security interest is subordinate to the security interest in favor of
Coast, and agree not to take any action to enforce its subordinate security
interest so long as any Obligations remain outstanding, and that Borrower agree
that any uncured default in any obligation secured by the subordinate security
interest shall also constitute an Event of Default under this Agreement.

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

      "Prime Rate" means the actual "Reference Rate" or the substitute therefor
of the Bank of America NT & SA whether or not that rate is the lowest interest
rate charged by said bank. If the Prime Rate, as defined, is unavailable, "Prime
Rate" shall mean the highest of the prime rates published in the Wall Street
Journal on the first business day of the applicable month, as the base rate on
corporate loans at large U.S. money center commercial banks.

      "Receivable Loans" means the Loans described in Section 2(a) of the
Schedule.

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

      "Renewal Date" shall mean the Maturity Date if this Agreement is renewed
pursuant to Section 9.1 hereof, and each anniversary thereafter that this
Agreement is renewed pursuant to Section 9.1 hereof.

      "Renewal Fee" means the fee that Borrower must pay Coast upon renewal of
this Agreement pursuant to Section 9.1 hereof, in the amount set forth on the
Schedule.

      "Solvent" means, with respect to any Person on a particular date, that on
such date (a) at fair valuations, all of the properties and assets of such
Person are greater than the sum of the debts, including contingent liabilities,
of such Person, (b) the present fair salable value of the properties and assets
of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and
matured, (c) such Person is able to realize upon its properties and assets and
pay its debts and other liabilities, contingent obligations and other
commitments as they mature in the normal course of business, (d) such Person
does not intend to, and does not believe that it will, incur debts beyond such
Person's ability to pay as such debts mature, and (e) such Person is not engaged
in business or a transaction, and is not about to engage in business or a
transaction, for which such Person's properties and assets would constitute
unreasonably small capital after giving due consideration to the prevailing
practices in the industry in which such Person is engaged. In computing the
amount of contingent liabilities at any time, it is intended that such
liabilities will be computed at the amount that, in light of all the facts and
circumstances existing at such time, represents the amount that reasonably can
be expected to become an actual or matured liability.


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Coast Business Credit                                Loan and Security Agreement
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      "Tangible Net Worth" means consolidated shareholder's equity plus
subordinated debt otherwise permitted hereunder, less, goodwill, patents,
trademarks, copyrights, franchises, formulas, leasehold interests, leasehold
improvements, non-compete agreements, engineering plans, deferred tax benefits,
organization costs, prepaid items and any other assets of Borrower that would be
treated as intangible assets on Borrower's balance sheet prepared in accordance
with GAAP.

      "Term Loan" means the Loans described in Section 2(c) of the Schedule.

      "Year 2000 Problem" means the risk that computer systems, software and
applications used by a Person may be unable to recognize and perform properly
date-sensitive functions involving certain dates prior to and any dates after
December 31, 1999.

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

2. CREDIT FACILITIES.

      2.1 Loans. Coast will make loans to Borrower (the "Loans"), in amounts and
in percentages to be determined by Coast in its good faith discretion, up to the
Credit Limit, provided no Default or Event of Default has occurred and is
continuing. In addition, Coast may create reserves against or reduce its advance
rates based upon Eligible Receivables or Eligible Inventory without declaring a
Default or an Event of Default if it determines that there has occurred a
Material Adverse Effect.

3. INTEREST AND FEES.

      3.1 Interest. All Loans and all other monetary Obligations shall bear
interest at the rate shown on the Schedule, except where expressly set forth to
the contrary in this Agreement. Interest shall be payable monthly, on the last
day of the month. Interest may, in Coast's discretion, be charged to Borrower's
loan account, and the same shall thereafter bear interest at the same rate as
the other Loans. Regardless of the amount of Obligations that may be outstanding
from time to time, Borrower shall pay Coast Minimum Monthly Interest during the
term of this Agreement with respect to the Receivable Loans and the Inventory
Loans in the amount set forth on the Schedule.

      3.2 Fees. Borrower shall pay Coast the fee(s) shown on the Schedule, which
are in addition to all interest and other sums payable to Coast. All fees shall
be deemed fully earned on the Closing Date and are nonrefundable.

4. SECURITY INTEREST.

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

5. CONDITIONS PRECEDENT.

      The obligation of Coast to make the Loans is subject to the satisfaction,
in the sole discretion of Coast, at or prior to the first advance of funds
hereunder, of each, every and all of the following conditions:


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      5.1 Status of Accounts at Closing. No accounts payable shall be due and
unpaid ninety (90) days past its due date except for such accounts payable being
contested in good faith in appropriate proceedings and for which adequate
reserves have been provided.

      5.2 Minimum Availability. Borrower shall have minimum availability
immediately following the initial funding in the amount set forth on the
Schedule.

      5.3 Landlord Waiver. Coast shall have received duly executed landlord
waivers and access agreements in form and substance satisfactory to Coast, in
Coast's sole and absolute discretion, and, when deemed appropriate by Coast, in
form for recording in the appropriate recording office, with respect to all
leased locations where Borrower maintains any inventory or equipment.

      5.4 Intentionally Deleted.

      5.5 Executed Agreement. Coast shall have received this Agreement duly
executed and in form and substance satisfactory to Coast in its sole and
absolute discretion.

      5.6 Opinion of Borrower's Counsel. Coast shall have received an opinion of
Borrower's counsel, in form and substance satisfactory to Coast in its sole and
absolute discretion.

      5.7 Priority of Coast's Liens. Coast shall have received the results of
"of record" searches satisfactory to Coast in its sole and absolute discretion,
reflecting its Uniform Commercial Code filings against Borrower indicating that
Coast has a perfected, first priority lien in and upon all of the Collateral,
subject only to Permitted Liens.

      5.8 Insurance. Coast shall have received copies of the insurance binders
or certificates evidencing Borrower's compliance with Section 8.2 hereof,
including lender's loss payee endorsements.

      5.9 Borrower's Existence. Coast shall have received copies of Borrower's
articles or certificate of incorporation and all amendments thereto, and a
Certificate of Good Standing, each certified by the Secretary of State of the
state of Borrower's organization, and dated a recent date prior to the Closing
Date, and Coast shall have received Certificates of Foreign Qualification for
Borrower from the Secretary of State of each state wherein the failure to be so
qualified could have a Material Adverse Effect.

      5.10 Organizational Documents. Coast shall have received copies of
Borrower's Bylaws and all amendments thereto, and Coast shall have received
copies of the resolutions of the board of directors of Borrower, authorizing the
execution and delivery of this Agreement and the other documents contemplated
hereby, and authorizing the transactions contemplated hereunder and thereunder,
and authorizing specific officers of Borrower to execute the same on behalf of
Borrower, in each case certified by the Secretary or other acceptable officer of
Borrower as of the Closing Date.

      5.11 Taxes. Coast shall have received evidence from Borrower that Borrower
has complied with all tax withholding and Internal Revenue Service regulations,
in form and substance satisfactory to Coast in its sole and absolute discretion.

      5.12 Due Diligence. Coast shall have completed its due diligence with
respect to Borrower.

      5.13 Year 2000 Problem Assessment Certificate. Coast shall have received a
certificate from the relevant officer of Borrower to the effect that, as the
result of a comprehensive assessment undertaken by Borrower of computer systems,
software and applications and after due inquiry made to Borrower's material
suppliers, vendors and customers, Borrower knows of no facts would cause
Borrower to reasonably believe that the Year 2000 Problem will cause a Material
Adverse Effect.


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      5.14 Other Documents and Agreements. Coast shall have received such other
agreements, instruments and documents as Coast may require in connection with
the transactions contemplated hereby, all in form and substance satisfactory to
Coast in Coast's sole and absolute discretion, and in form for filing in the
appropriate filing office, including, but not limited to, those documents listed
in Section 5 of the Schedule.

6. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWER.

      In order to induce Coast to enter into this Agreement and to make Loans,
Borrower represents and warrants to Coast as follows, and Borrower covenants
that the following representations will be true on each date that Coast makes a
Loan, and that Borrower will at all times comply with all of the following
covenants:

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

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

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

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


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      6.5 Maintenance of Collateral. Borrower will maintain the Collateral in
good working condition, and Borrower will not knowingly use the Collateral for
any unlawful purpose. Borrower will immediately advise Coast in writing of any
material loss or damage to the Collateral of which Borrower has become aware.

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

      6.7 Financial Condition, Statements and Reports. All financial statements
now or in the future delivered to Coast have been, and will be, prepared in
conformity with GAAP (except, in the case of unaudited financial statements, for
the absence of footnotes and subject to normal year-end adjustments) and now and
in the future will fairly reflect the financial condition of Borrower, at the
times and for the periods therein stated. Between the last date covered by any
such statement provided to Coast and the date hereof, there has been no Material
Adverse Effect. Borrower is now and will continue to be Solvent.

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

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

      6.10 Litigation. Except as disclosed in the Schedule, there is no claim,
suit, litigation, proceeding or investigation pending or (to best of Borrower's
knowledge) threatened by or against or affecting Borrower in any court or before
any governmental agency (or any basis therefor known to Borrower) which may
result, either separately or in the aggregate, in a Material Adverse Effect.
Borrower will promptly inform Coast in writing of any claim, proceeding,
litigation or investigation in the future threatened or instituted by or against
Borrower involving an amount set forth on the Schedule.

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

      6.12 Year 2000 Compliance. As the result of a comprehensive review and
assessment undertaken by Borrower of Borrower's computer systems, software and
applications and after due inquiry made of Borrower's material suppliers,
vendors and customers, Borrower represents and warrants that the Year 2000
problem will not result in a Material Adverse Effect.


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7. RECEIVABLES.

      7.1 Representations Relating to Receivables. Borrower represents and
warrants to Coast as follows: Each Receivable with respect to which Loans are
requested by Borrower shall, on the date each Loan is requested and made,
represent an undisputed bona fide existing unconditional obligation of the
Account Debtor created by the sale, delivery and acceptance of goods or the
rendition of services in the ordinary course of Borrower's business.

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

      7.3 Schedules and Documents relating to Receivables. Borrower shall
deliver to Coast via facsimile, unless otherwise directed by Coast, at such
locations and at such intervals as Coast may request, transaction reports and
loan requests, schedules of Receivables, if applicable, and schedules of
collections, all on Coast's standard forms; provided, however, that Borrower's
failure to execute and deliver the same shall not affect or limit Coast's
security interest and other rights in all of Borrower's Receivables, nor shall
Coast's failure to advance or lend against a specific Receivable affect or limit
Coast's security interest and other rights therein. Loan requests received after
10:30 A.M. Los Angeles, California time, will not be considered by Coast until
the next Business Day. Together with each such schedule, if requested by Coast
at that time or later and only to the extent applicable, Borrower shall furnish
Coast with copies (or, at Coast's request, originals) of all contracts, orders,
invoices, and other similar documents, and all original shipping instructions,
delivery receipts, bills of lading, and other evidence of delivery, for any
goods the sale or disposition of which gave rise to such Receivables, and
Borrower warrants the genuineness of all of the foregoing. Borrower shall also
furnish to Coast an aged accounts receivable trial balance in such form and at
such intervals as Coast shall request. In addition, Borrower shall deliver to
Coast the originals, if any, of all instruments, chattel paper, security
agreements, guarantees and other documents and property evidencing or securing
any Receivables, upon receipt thereof and in the same form as received, with all
necessary endorsements, all of which shall be with recourse. Borrower shall also
provide Coast with copies of all credit memos as and when requested by Coast.

      7.4 Collection of Receivables. Borrower shall have the right to collect
all Receivables, unless and until an Event of Default has occurred. Borrower
shall hold all payments on, and proceeds of, Receivables in trust for Coast, and
Borrower shall deliver all such payments and proceeds to Coast within one (1)
Business Day after receipt by Borrower, in their original form, duly endorsed to
Coast, to be applied to the Obligations in such order as Coast shall determine.
Coast may, in its discretion, require that all proceeds of Collateral be
deposited by Borrower into a lockbox account, or such other "blocked account" as
Coast may specify, pursuant to a blocked account agreement in such form as Coast
may specify. Coast or its designee may, at any time, notify Account Debtors that
Coast has been granted a security interest in the Receivables.

      7.5 Remittance of Proceeds. All proceeds arising from the disposition of
any Collateral shall be delivered to Coast within one (1) Business Day after
receipt by Borrower, in their original form, duly endorsed to Coast, to be
applied to the Obligations in such order as Coast shall determine. Borrower
agrees that it will not commingle proceeds of Collateral with any of Borrower's
other funds or property, but will hold such proceeds separate and apart from
such other funds and property and in an express trust for Coast. Nothing in this
Section limits the restrictions on disposition of Collateral set forth elsewhere
in this Agreement.

      7.6 Disputes. Borrower shall deliver to Coast on a weekly basis the Start
Monthly History report, which shall be delivered by Tuesday of each week for the
preceding week. Borrower shall not forgive (completely or partially), compromise
or settle any Receivable for less than payment in full, or agree to do any of
the foregoing, except that Borrower may do so, provided that: (a) Borrower does
so in good faith, in a commercially reasonable


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manner, in the ordinary course of business, and in arm's length transactions,
which are reported to Coast on the regular reports provided to Coast; (b) no
Default or Event of Default has occurred and is continuing; and (c) taking into
account all such discounts settlements and forgiveness, the total outstanding
Loans will not exceed the Credit Limit. Coast may, at any time after the
occurrence of an Event of Default, settle or adjust disputes or claims directly
with Account Debtors for amounts and upon terms which Coast considers advisable
in its reasonable credit judgment and, in all cases, Coast shall credit
Borrower's Loan account with only the net amounts received by Coast in payment
of any Receivables.

      7.7 Intentionally Deleted.

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

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

8. ADDITIONAL DUTIES OF THE BORROWER.

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

      8.2 Insurance. Borrower shall, at all times insure all of the tangible
personal property Collateral and carry such other business insurance, with
insurers reasonably acceptable to Coast, in such form and amounts as Coast may
reasonably require, and Borrower shall provide evidence of such insurance to
Coast, so that Coast is satisfied that such insurance is, at all times, in full
force and effect. All liability insurance policies of Borrower shall name Coast
as an additional insured, and all property casualty and related insurance
policies of Borrower shall name Coast as a loss payee thereon and Borrower shall
cause a lender's loss payee endorsement in form reasonably acceptable to Coast.
Upon receipt of the proceeds of any such insurance, Coast shall apply such
proceeds in reduction of the Obligations as Coast shall determine in its sole
discretion, except that, provided no Default or Event of Default has occurred
and is continuing, Coast shall release to Borrower insurance proceeds with
respect to Equipment totaling less than the amount set forth in Section 8 of the
Schedule, which shall be utilized by Borrower for the replacement of the
Equipment with respect to which the insurance proceeds were paid. Coast may
require reasonable assurance that the insurance proceeds so released will be so
used. If Borrower fails to provide or pay for any insurance, Coast may, but is
not obligated to, obtain the same at Borrower's expense. Borrower shall promptly
deliver to Coast copies of all reports made to insurance companies.

      8.3 Reports. Borrower, at its expense, shall provide Coast with the
written reports set forth in Section 8 of the Schedule, and such other written
reports with respect to Borrower (including budgets, sales projections,
operating plans and other financial documentation), as Coast shall from time to
time reasonably specify.

      8.4 Access to Collateral, Books and Records. At reasonable times but not
less frequently than quarterly and provided that a Default or an Event of
Default has not occurred and is continuing, not more frequently than monthly,
and on one (1) Business Day's notice, Coast, or its agents, shall have the right
to perform Audits. Coast shall take reasonable steps to keep confidential all
confidential information obtained in any Audit, but Coast shall have the right
to disclose any such information to its auditors, regulatory agencies, and
attorneys, and pursuant to any subpoena or other legal process. The Audits shall
be at Borrower's expense and the charge for the Audits shall be Seven Hundred
Fifty Dollars ($750) per person per day (or such higher amount as shall
represent Coast's then current standard charge for the same), plus reasonable
out-of-pocket expenses. Borrower will not enter into any


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agreement with any accounting firm, service bureau or third party to store
Borrower's books or records at any location other than Borrower's Address,
without first notifying Coast of the same and obtaining the written agreement
from such accounting firm, service bureau or other third party to give Coast the
same rights with respect to access to books and records and related rights as
Coast has under this Loan Agreement. Borrower shall also take all necessary
steps to assure that this material accounting and software, systems and
applications, and those of its accounting firm, service bureau or any other
third party vendor or supplier, will on a timely basis, adequately and
completely address the Year 2000 Problem in all material aspects.

      8.5 Negative Covenants. Borrower shall not, without Coast's prior written
consent, do any of the following:

            (a) merge or consolidate with another entity, except (i) in a
transaction in which the owners of the Borrower hold at least fifty percent
(50%) of the ownership interest in the surviving entity immediately after such
merger or consolidation, and the Borrower is the surviving entity, or (ii) if
all outstanding Obligations are paid and this Agreement is terminated as a
result;

            (b) acquire any assets, except (i) in the ordinary course of
business, or (ii) in a transaction or a series of transactions not involving the
payment of an aggregate amount in excess of the amount set forth in Section 8 of
the Schedule;

            (c) enter into any other transaction not otherwise permitted by this
Section 8.5 outside the ordinary course of business;

            (d) sell or transfer any Collateral, except for the sale of finished
Inventory in the ordinary course of Borrower's business, and except for the sale
of obsolete or unneeded Equipment in the ordinary course of business; provided
that nothing herein shall be deemed to prevent Borrower from using any advances
made by Coast hereunder to operate Borrower's business;

            (e) Intentionally Deleted;

            (f) Intentionally Deleted;

            (g) make any loans of any money or other assets, except (i) advances
to customers or suppliers in the ordinary course of business, (ii) travel
advances, employee relocation loans and other employee loans and advances in the
ordinary course of business, and (iii) loans to employees, officers and
directors for the purpose of purchasing equity securities of the Borrower;

            (h) incur any debts, outside the ordinary course of business, which
would have a Material Adverse Effect;

            (i) guarantee or otherwise become liable with respect to the
obligations of another party or entity;

            (j) except as permitted pursuant to the Schedule, pay or declare any
dividends or distributions on the ownership interests in Borrower (except for
dividends or distributions payable solely in stock form of ownership interests
in Borrower);

            (k) make any change in Borrower's capital structure which would have
a Material Adverse Effect; or

            (l) dissolve or elect to dissolve.

      Transactions permitted by the foregoing provisions of this Section are
only permitted if no Default or Event of Default is continuing or would occur as
a result of such transaction.


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

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

9. TERM.

      9.1 Maturity Date. This Agreement shall continue in effect until the
Maturity Date; provided that the Maturity Date shall automatically be extended,
and this Agreement shall automatically and continuously renew, for successive
additional terms of one year each, unless one party gives written notice to the
other, not less than one hundred twenty (120) days prior to the Maturity Date or
the next Renewal Date, that such party elects to terminate this Agreement
effective on the Maturity Date or such next Renewal Date. If this Agreement is
renewed under this Section 9.1, Borrower shall pay to Coast a Renewal Fee in the
amount shown in Section 3 of the Schedule. The Renewal Fee shall be due and
payable on the Renewal Date and thereafter shall bear interest at a rate equal
to the rate applicable to the Receivable Loans.

      9.2 Early Termination. This Agreement may be terminated prior to the
Maturity Date as follows: (a) by Borrower, effective three (3) Business Days
after written notice of termination is given to Coast; or (b) by Coast at any
time after the occurrence of an Event of Default, without notice, effective
immediately. If this Agreement is terminated by Borrower or by Coast under this
Section 9.2, Borrower shall pay to Coast an Early Termination Fee in the amount
shown in Section 3 of the Schedule. The Early Termination Fee shall be due and
payable on the effective date of termination and thereafter shall bear interest
at a rate equal to the rate applicable to the Receivable Loans.

      9.3 Payment of Obligations. On the Maturity Date or on any earlier
effective date of termination, Borrower shall pay and perform in full all
Obligations, whether evidenced by installment notes or otherwise, and whether or
not all or any part of such Obligations are otherwise then due and payable.
Notwithstanding any termination of this Agreement, all of Coast's security
interests in all of the Collateral and all of the terms and provisions of this
Agreement shall continue in full force and effect until all Obligations have
been paid and performed in full; provided that, without limiting the fact that
Loans are subject to the discretion of Coast, Coast may, in its sole discretion,
refuse to make any further Loans after termination. No termination shall in any
way affect or impair any right or remedy of Coast, nor shall any such
termination relieve Borrower of any Obligation to Coast, until all of the
Obligations have been paid and performed in full. Upon payment and performance
in full of all the Obligations and termination of this Agreement, Coast shall
promptly deliver to Borrower termination statements, requests for reconveyances
and such other documents as may be required to fully terminate Coast's security
interests.

10. EVENTS OF DEFAULT AND REMEDIES

      10.1 Events of Default. The occurrence of any of the following events
shall constitute an "Event of Default" under this Agreement, and Borrower shall
give Coast immediate written notice thereof:

            (a) Any warranty, representation, statement, report or certificate
made or delivered to Coast by Borrower or any of Borrower's officers, employees
or agents, now or in the future, shall have been untrue or misleading when made
and results in a Material Adverse Effect; or

            (b) Borrower shall fail to pay when due any Loan or any interest
thereon or any other monetary Obligation; or


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            (c) the total Loans and other Obligations outstanding at any time
shall exceed the Credit Limit; or

            (d) Borrower shall fail to deliver the proceeds of Collateral to
Coast as provided in Section 7.5 above, or shall fail to give Coast access to
its books and records or Collateral as provided in Section 8.4 above, or shall
breach any negative covenant set forth in Section 8.5 above; or

            (e) Borrower shall fail to comply with the financial covenants (if
any) set forth in the Schedule or shall fail to perform any other non-monetary
Obligation which by its nature cannot be cured; or

            (f) Borrower shall fail to perform any other non-monetary
Obligation, which failure is not cured within five (5) Business Days after the
date due; or

            (g) Any levy, assessment, attachment, seizure, lien or encumbrance
(other than a Permitted Lien) is made on all or any part of the Collateral which
is not cured within ten (10) days after the occurrence of the same; or

            (h) any default or event of default occurs under any obligation
secured by a Permitted Lien, which is not cured within any applicable cure
period or waived in writing by the holder of the Permitted Lien; or

            (i) Borrower breaches any material contract or obligation, which has
or may reasonably be expected to have a Material Adverse Effect; or

            (j) Dissolution, termination of existence, insolvency or business
failure of Borrower or any guarantor of any of the Obligations; or appointment
of a receiver, trustee or custodian, for all or any part of the property of,
assignment for the benefit of creditors by, or the commencement of any
proceeding by Borrower or any guarantor of any of the Obligations under any
reorganization, bankruptcy, insolvency, arrangement, readjustment of debt,
dissolution or liquidation law or statute of any jurisdiction, now or in the
future in effect; or

            (k) the commencement of any proceeding against Borrower or any
guarantor of any of the Obligations under any reorganization, bankruptcy,
insolvency, arrangement, readjustment of debt, dissolution or liquidation law or
statute of any jurisdiction, now or in the future in effect, which is (i) not
timely controverted, or (ii) not cured by the dismissal thereof within
forty-five (45) days after the date commenced; or

            (l) revocation or termination of, or limitation or denial of
liability upon, any guaranty of the Obligations or any attempt to do any of the
foregoing, or commencement of proceedings by any guarantor of any of the
Obligations under any bankruptcy or insolvency law; or

            (m) revocation or termination of, or limitation or denial of
liability upon, any pledge of any certificate of deposit, securities or other
property or asset of any kind pledged by any third party to secure any or all of
the Obligations, or any attempt to do any of the foregoing, or commencement of
proceedings by or against any such third party under any bankruptcy or
insolvency law; or

            (n) Borrower or any guarantor of any of the Obligations makes any
payment on account of any indebtedness or obligation which has been subordinated
to the Obligations, other than as permitted in the applicable subordination
agreement, or if any Person who has subordinated such indebtedness or
obligations terminates or in any way limits his subordination agreement; or

            (o) Except as permitted under Section 8.5(a), Borrower or any
guarantor of the Obligations shall suffer or experience any Change of Control
without Coast's prior written consent, which consent shall be in the discretion
of Coast in the exercise of its reasonable business judgment; or

            (p) Borrower shall generally not pay its debts as they become due,
or Borrower shall conceal, remove or transfer any part of its property, with
intent to hinder, delay or defraud its creditors, or make or suffer any


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Coast Business Credit                                Loan and Security Agreement
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transfer of any of its property which may be fraudulent under any bankruptcy,
fraudulent conveyance or similar law; or

            (q) there shall be any Material Adverse Effect.

Coast may cease making any Loans or extending any credit hereunder during any of
the above cure periods.

      10.2 Remedies. Upon the occurrence, and during the continuance, of any
Event of Default, Coast, at its option, and without notice or demand of any kind
(all of which are hereby expressly waived by Borrower), may do any one or more
of the following:

            (a) Cease making Loans or otherwise extending credit to Borrower
under this Agreement or any other document or agreement;

            (b) Accelerate and declare all or any part of the Obligations to be
immediately due, payable and performable, notwithstanding any deferred or
installment payments allowed by any instrument evidencing or relating to any
Obligation;

            (c) Take possession of any or all of the Collateral wherever it may
be found, and for that purpose Borrower hereby authorizes Coast without judicial
process to enter onto any of Borrower's premises without interference to search
for, take possession of, keep, store or remove any of the Collateral, and remain
on the premises or cause a custodian to remain on the premises in exclusive
control thereof, without charge for so long as Coast deems it reasonably
necessary in order to complete the enforcement of its rights under this
Agreement or any other agreement; provided, however, that should Coast seek to
take possession of any of the Collateral by Court process, Borrower hereby
irrevocably waives:

                  (i) any bond and any surety or security relating thereto
required by any statute, court rule or otherwise as an incident to such
possession;

                  (ii) any demand for possession prior to the commencement of
any suit or action to recover possession thereof; and

                  (iii) any requirement that Coast retain possession of, and not
dispose of, any such Collateral until after trial or final judgment;

            (d) Require Borrower to assemble any or all of the Collateral and
make it available to Coast at places designated by Coast which are reasonably
convenient to Coast and Borrower, and to remove the Collateral to such locations
as Coast may deem advisable;

            (e) Complete the processing, manufacturing or repair of any
Collateral prior to a disposition thereof and, for such purpose and for the
purpose of removal, Coast shall have the right to use Borrower's premises,
vehicles, hoists, lifts, cranes, equipment and all other property without
charge. Coast is hereby granted a license or other right to use, without charge,
Borrower's labels, patents, copyrights, 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 Borrower's
rights under all licenses and all franchise agreements shall inure to Coast's
benefit;

            (f) Sell, lease or otherwise dispose of any of the Collateral, in
its condition at the time Coast obtains possession of it or after further
manufacturing, processing or repair, at one or more public and/or private sales,
in lots or in bulk, for cash, exchange or other property, or on credit, and to
adjourn any such sale from time to time without notice other than oral
announcement at the time scheduled for sale. Coast shall have the right to
conduct such disposition on Borrower's premises without charge, for such time or
times as Coast deems reasonable, or on Coast's premises, or elsewhere and the
Collateral need not be located at the place of disposition. Coast may directly
or through any affiliated company purchase or lease any Collateral at any such
public disposition, and if


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Coast Business Credit                                Loan and Security Agreement
--------------------------------------------------------------------------------

permissible under applicable law, at any private disposition. Any sale or other
disposition of Collateral shall not relieve Borrower of any liability Borrower
may have if any Collateral is defective as to title or physical condition or
otherwise at the time of sale;

            (g) Demand payment of, and collect any Receivables and General
Intangibles comprising Collateral and, in connection therewith, Borrower
irrevocably authorizes Coast to endorse or sign Borrower's name on all
collections, receipts, instruments and other documents, to take possession of
and open mail addressed to Borrower and remove therefrom payments made with
respect to any item of the Collateral or proceeds thereof, and, in Coast's sole
discretion, to grant extensions of time to pay, compromise claims and settle
Receivables and the like for less than face value; and

            (h) Demand and receive possession of any of Borrower's federal and
state income tax returns and the books and records utilized in the preparation
thereof or referring thereto.

      All reasonable attorneys' fees, expenses, costs, liabilities and
obligations incurred by Coast (including attorneys' fees and expenses incurred
in connection with bankruptcy) with respect to the foregoing shall be due from
the Borrower to Coast on demand. Coast may charge the same to Borrower's loan
account, and the same shall thereafter bear interest at the same rate as is
applicable to the Receivable Loans. Without limiting any of Coast's rights and
remedies, from and after the occurrence of any Event of Default, the interest
rate applicable to the Obligations shall be increased by an additional three
percent per annum.

      10.3 Standards for Determining Commercial Reasonableness. Borrower and
Coast agree that a sale or other disposition (collectively, "sale") of any
Collateral which complies with the following standards will conclusively be
deemed to be commercially reasonable:

            (a) Notice of the sale is given to Borrower at least five (5) days
prior to the sale, and, in the case of a public sale, notice of the sale is
published at least five (5) days before the sale in a newspaper of general
circulation in the county where the sale is to be conducted;

            (b) Notice of the sale describes the collateral in general,
non-specific terms;

            (c) The sale is conducted at a place designated by Coast, with or
without the Collateral being present;

            (d) The sale commences at any time between 8:00 a.m. and 6:00 p.m.
Los Angeles, California time;

            (e) Payment of the purchase price in cash or by cashier's check or
wire transfer is required; and

            (f) With respect to any sale of any of the Collateral, Coast may
(but is not obligated to) direct any prospective purchaser to ascertain directly
from Borrower any and all information concerning the same.

      Coast shall be free to employ other methods of noticing and selling the
Collateral, in its discretion, if they are commercially reasonable.

      10.4 Power of Attorney. Borrower grants to Coast an irrevocable power of
attorney coupled with an interest, authorizing and permitting Coast (acting
through any of its employees, attorneys or agents) at any time, at its option,
but without obligation, with or without notice to Borrower, and at Borrower's
expense, to do any or all of the following, in Borrower's name or otherwise, but
Coast agrees to exercise the following powers in a commercially reasonable
manner:

            (a) Execute on behalf of Borrower any documents that Coast may, in
its sole discretion, deem advisable in order to perfect and maintain Coast's
security interest in the Collateral, or in order to exercise a right of


                                       15
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Coast Business Credit                                Loan and Security Agreement
--------------------------------------------------------------------------------

Borrower or Coast, or in order to fully consummate all the transactions
contemplated under this Agreement, and all other present and future agreements;

            (b) Execute on behalf of Borrower any document exercising,
transferring or assigning any option to purchase, sell or otherwise dispose of
or to lease (as lessor or lessee) any real or personal property which is part of
Coast's Collateral or in which Coast has an interest;

            (c) Execute on behalf of Borrower, any invoices relating to any
Receivable, any draft against any Account Debtor and any notice to any Account
Debtor, any proof of claim in bankruptcy, any Notice of Lien, claim of
mechanic's, materialman's or other lien, or assignment or satisfaction of
mechanic's, materialman's or other lien;

            (d) Take control in any manner of any cash or non-cash items of
payment or proceeds of Collateral; endorse the name of Borrower upon any
instruments, or documents, evidence of payment or Collateral that may come into
Coast's possession;

            (e) Endorse all checks and other forms of remittances received by
Coast;

            (f) Pay, contest or settle any lien, charge, encumbrance, security
interest and adverse claim in or to any of the Collateral, or any judgment based
thereon, or otherwise take any action to terminate or discharge the same;

            (g) Grant extensions of time to pay, compromise claims and settle
Receivables and General Intangibles for less than face value and execute all
releases and other documents in connection therewith;

            (h) Pay any sums required on account of Borrower's taxes or to
secure the release of any liens therefor, or both;

            (i) Settle and adjust, and give releases of, any insurance claim
that relates to any of the Collateral and obtain payment therefor;

            (j) Instruct any third party having custody or control of any books
or records belonging to, or relating to, Borrower to give Coast the same rights
of access and other rights with respect thereto as Coast has under this
Agreement; and

            (k) Take any action or pay any sum required of Borrower pursuant to
this Agreement.

      Any and all sums paid and any and all costs, expenses, liabilities,
obligations and attorneys' fees incurred by Coast (including reasonable
attorneys' fees and expenses incurred pursuant to bankruptcy) with respect to
the foregoing shall be added to and become part of the Obligations, and shall be
payable on demand. Coast may charge the foregoing to Borrower's loan account and
the foregoing shall thereafter bear interest at the same rate applicable to the
Receivable Loans. In no event shall Coast's rights under the foregoing power of
attorney or any of Coast's other rights under this Agreement be deemed to
indicate that Coast is in control of the business, management or properties of
Borrower. Borrower shall pay, indemnify, defend, and hold Coast and each of its
officers, directors, employees, counsel, agents, and attorneys-in-fact (each, an
"Indemnified Person") harmless (to the fullest extent permitted by law) from and
against any and all claims, demands, suits, actions, investigations,
proceedings, and damages, and all attorneys fees and disbursements and other
costs and expenses actually incurred in connection therewith (as and when they
are incurred and irrespective of whether suit is brought), at any time asserted
against, imposed upon, or incurred by any of them in connection with or as a
result of or related to the execution, delivery, enforcement, performance, and
administration of this Agreement and any other Loan Documents or the
transactions contemplated herein, and with respect to any investigation,
litigation, or proceeding related to this Agreement, any other Loan Document, or
the use of the proceeds of the credit provided hereunder (irrespective of
whether any Indemnified Person is a party thereto), or any act, omission, event
or circumstance in any manner related thereto (all the foregoing, collectively,
the "Indemnified Liabilities"). Borrower shall have no obligation to any
Indemnified


                                       16
<PAGE>   20

Coast Business Credit                                Loan and Security Agreement
--------------------------------------------------------------------------------

Person hereunder with respect to any Indemnified Liability that a court of
competent jurisdiction finally determines to have resulted from the gross
negligence or willful misconduct of such Indemnified Person. This provision
shall survive the termination of this Agreement and the repayment of the
Obligations.

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

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

11. GENERAL PROVISIONS.

      11.1 Interest Computation. In computing interest on the Obligations, all
checks, wire transfers and other items of payment received by Coast (including
proceeds of Receivables and payment of the Obligations in full) shall be deemed
applied by Coast on account of the Obligations three (3) Business Days after
receipt by Coast of immediately available funds (one (1) Business Day for credit
card deposits), and, for purposes of the foregoing, any such funds received
after 10:30 AM Los Angeles, California time, on any day shall be deemed received
on the next Business Day. Coast shall be entitled to charge Borrower's account
for such three (3) Business Days (one (1) Business Day for credit card deposits)
of "clearance" or "float" at the rate(s) set forth in Section 3 of the Schedule
on all checks, wire transfers and other items received by Coast, regardless of
whether such three (3) Business Days (one (1) Business Day for credit card
deposits) of "clearance" or "float" actually occur, and shall be deemed to be
the equivalent of charging three (3) Business Days (one (1) Business Day for
credit card deposits) of interest on such collections. This across-the-board
three (3) Business Day clearance or float charge (one (1) Business Day for
credit card deposits) on all collections is acknowledged by the parties to
constitute an integral aspect of the pricing of Coast's financing of Borrower.
Coast shall not, however, be required to credit Borrower's account for the
amount of any item of payment which is unsatisfactory to Coast in its sole
discretion, and Coast may charge Borrower's loan account for the amount of any
item of payment which is returned to Coast unpaid.

      11.2 Application of Payments. Subject to Section 7.5 hereof, all payments
with respect to the Obligations may be applied, and in Coast's sole discretion
reversed and re-applied, to the Obligations, in such order and manner as Coast
shall determine in its sole discretion.

      11.3 Charges to Accounts. Coast may, in its discretion, require that
Borrower pay monetary Obligations in cash to Coast, or charge them to Borrower's
Loan account, in which event they will bear interest from the date due to the
date paid at the same rate applicable to the Loans.

      11.4 Monthly Accountings. Coast shall provide Borrower monthly with an
account of advances, charges, expenses and payments made pursuant to this
Agreement. Such account shall be deemed correct, accurate and binding on
Borrower and an account stated (except for reverses and reapplications of
payments made and corrections of errors discovered by Coast), unless Borrower
notifies Coast in writing to the contrary within thirty (30) days after each
account is rendered, describing the nature of any alleged errors or omissions.


                                       17
<PAGE>   21

Coast Business Credit                                Loan and Security Agreement
--------------------------------------------------------------------------------

      11.5 Notices. All notices to be given under this Agreement shall be in
writing and shall be given either personally or by reputable private delivery
service or by regular first-class mail, facsimile or certified mail return
receipt requested, addressed to Coast or Borrower at the addresses shown in the
heading to this Agreement, or at any other address designated in writing by one
party to the other party. Notices to Coast shall be directed to the Commercial
Finance Division, to the attention of the Division Manager or the Division
Credit Manager. All notices shall be deemed to have been given upon delivery in
the case of notices personally delivered, faxed (at time of confirmation of
transmission), or at the expiration of one (1) Business Day following delivery
to the private delivery service, or two (2) Business Days following the deposit
thereof in the United States mail, with postage prepaid.

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

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

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

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

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

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

      11.12 Attorneys Fees, Costs and Charges. Borrower shall reimburse Coast
for all attorneys' fees (including reasonable attorneys' fees and expenses
incurred pursuant to bankruptcy) and all filing, recording, search, title
insurance, appraisal, audit, and other costs incurred by Coast, pursuant to, or
in connection with, or relating to this Agreement (whether or not a lawsuit is
filed), including, but not limited to, any reasonable attorneys' fees and costs
(including reasonable attorneys' fees and expenses incurred pursuant to
bankruptcy) Coast incurs in order to do the following: prepare and negotiate
this Agreement and the documents relating to this Agreement; obtain legal advice
in connection with this Agreement or Borrower; enforce, or seek to enforce, any
of its rights; prosecute actions against, or defend actions by, Account Debtors;
commence, intervene in, or defend any action or proceeding; initiate any
complaint to be relieved of the automatic stay in bankruptcy; file or prosecute
any probate claim,


                                       18
<PAGE>   22

Coast Business Credit                                Loan and Security Agreement
--------------------------------------------------------------------------------

bankruptcy claim, third-party claim, or other claim; examine, audit, copy, and
inspect any of the Collateral or any of Borrower's books and records; protect,
obtain possession of, lease, dispose of, or otherwise enforce Coast's security
interest in, the Collateral; and otherwise represent Coast in any litigation
relating to Borrower. If either Coast or Borrower files any lawsuit against the
other predicated on a breach of this Agreement, the prevailing party in such
action shall be entitled to recover its costs and reasonable attorneys' fees
(including reasonable attorneys' fees and expenses incurred pursuant to
bankruptcy), including (but not limited to) reasonable attorneys' fees and costs
incurred in the enforcement of, execution upon or defense of any order, decree,
award or judgment. Borrower shall also pay Coast's standard charges for returned
checks and for wire transfers, in effect from time to time. All attorneys' fees,
costs and charges (including attorneys' fees and expenses incurred pursuant to
bankruptcy) and other fees, costs and charges to which Coast may be entitled
pursuant to this Agreement may be charged by Coast to Borrower's loan account
and shall thereafter bear interest at the same rate as the Receivable Loans.

      11.13 Benefit of Agreement. The provisions of this Agreement shall be
binding upon and inure to the benefit of the respective successors, assigns,
heirs, beneficiaries and representatives of Borrower and Coast; provided,
however, that, except as permitted by Section 8.5(a), Borrower may not assign or
transfer any of its rights under this Agreement without the prior written
consent of Coast, and any prohibited assignment shall be void. No consent by
Coast to any assignment shall release Borrower from its liability for the
Obligations. Coast may assign its rights and delegate its duties hereunder
without the consent of Borrower. Coast reserves the right to syndicate all or a
portion of the transaction created herein or sell, assign, transfer, negotiate,
or grant participations in all or any part of, or any interest in Coast's rights
and benefits hereunder, provided that in any such participation Coast shall
continue to be the lead lender. In connection with any such syndication,
assignment or participation, Coast may disclose all documents and information
which Coast now or hereafter may disclose all documents and information which
Coast now or hereafter may have relating to Borrower or Borrower's business. To
the extent that Coast assigns its rights and obligations hereunder to at third
Person, Coast thereafter shall be released from such assigned obligations to
Borrower, except for claims, if any, against Coast accruing prior to the date of
the assignment.

      11.14 Publicity. Coast is hereby authorized, at its expense, to issue
appropriate press releases and to cause a tombstone to be published announcing
the consummation of this transaction and the aggregate amount thereof.

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

      11.16 Governing Law; Jurisdiction; Venue This Agreement and all acts and
transactions hereunder and all rights and obligations of Coast and Borrower
shall be governed by the internal laws of the State of California, without
regard to its conflicts of law principles. As a material part of the
consideration to Coast to enter into this Agreement, Borrower (a) agrees that
all actions and proceedings relating directly or indirectly to this Agreement
shall, at Coast's option, be litigated in courts located within California, and
that the exclusive venue therefor shall be Los Angeles County; (b) consents to
the jurisdiction and venue of any such court and consents to service of process
in any such action or proceeding by personal delivery or any other method
permitted by law; and (c) waives any and all rights Borrower may have to object
to the jurisdiction of any such court, or to transfer or change the venue of any
such action or proceeding.

      11.17 Mutual Waiver of Jury Trial BORROWER AND COAST EACH HEREBY WAIVE THE
RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF,
OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE
INSTRUMENT OR AGREEMENT BETWEEN COAST AND BORROWER, OR ANY CONDUCT, ACTS OR
OMISSIONS OF COAST OR BORROWER OR ANY OF THEIR DIRECTORS, OFFICERS, EMPLOYEES,
AGENTS,


                                       19
<PAGE>   23

Coast Business Credit                                Loan and Security Agreement
--------------------------------------------------------------------------------

ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH COAST OR BORROWER, IN ALL OF THE
FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.

BORROWER:

DIRECT SALES INTERNATIONAL, INC.

By /s/ Ronald Altbach
   --------------------------------
    President or Vice President


COAST:

COAST BUSINESS CREDIT,
a division of Southern Pacific Bank

By         Robert Peters
     ------------------------------

Title
     ------------------------------


                                       20
<PAGE>   24

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

Coast

                                   SCHEDULE TO
                           LOAN AND SECURITY AGREEMENT

Borrower: Direct Sales International, Inc.

Address:  2550 Heritage Court, Suite 106
          Atlanta, Georgia

Date:     January __, 2000

This Schedule forms an integral part of the Loan and Security Agreement between
Coast Business Credit, a division of Southern Pacific Bank, and the
above-borrower of even date.

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

SECTION 2. CREDIT FACILITIES

  Section 2.1 - Credit Limit:     Loans in a total amount at any time
                                  outstanding to Borrower and to the
                                  Subsidiaries not to exceed the lesser of a
                                  total of Twenty Million Dollars ($20,000,000)
                                  at any one time outstanding (the "Maximum
                                  Dollar Amount"), or the sum of the following:


                                       21
<PAGE>   25

                                  Advances up to four (4) times monthly
                                  recurring collections measured on a trailing
                                  six month moving average not to exceed the
                                  lesser of:

                                              (a) 80% of the net accounts
                                  receivables of Borrower (gross accounts
                                  receivable acceptable to Coast less allowances
                                  for doubtful accounts); or

                                              (b) 50% of the business enterprise
                                  value of Borrower as determined by Coast in
                                  its discretion.

                                  If total accounts receivable dilution should
                                  exceed 55% as determined by Coast through a
                                  quarterly audit, such event shall constitute
                                  an Event of Default. In addition to the
                                  limitations set forth above, in no event shall
                                  Coast's unpaid Loans to Borrower exceed four
                                  times trailing twelve month EBITDA, measured
                                  monthly, prior to payment of management fees
                                  to Symposium Corporation not to exceed
                                  $150,000 per month.

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

SECTION 3 - INTEREST AND FEES

  Section 3.1 - Interest Rate:    A rate equal to the Prime Rate plus 2% per
                                  annum, calculated on the basis of a 360-day
                                  year for the actual number of days elapsed.
                                  The interest rate applicable to all Loans
                                  shall be adjusted monthly effective as of the
                                  first day of each month, and the interest to
                                  be charged for each month shall be based on
                                  the highest Prime Rate in effect during said
                                  month, but in no event shall the rate of
                                  interest charged on any Loans in any month be
                                  less than 9% per annum.

  Section 3.1 - Minimum Monthly   Interest based on an amount equal to fifty
                Interest:         percent (50%) of the Maximum Dollar Amount
                                  based on daily borrowings.

  Section 3.2 - Loan Fee:         $200,000 payable concurrently herewith plus
                                  one quarter of one (0.25) percent of the
                                  Maximum Dollar Amount payable on each
                                  anniversary of this Agreement All Loan Fees
                                  shall be deemed earned on the Closing Date and
                                  shall not be refundable for any reason

  Section 3.2 - Facility Fee:     $5,000 per month payable on the Closing Date
                                  (prorated for any partial month at the
                                  beginning of the term of this Agreement) and
                                  continuing on the first day of each month
                                  thereafter.

  Section 9.1 - Renewal Fee:      One half of one (0.50) percent % of the
                                  Maximum Dollar Amount beginning in year four
                                  of this Agreement.

  Section 9.2 - Early             An amount equal to three percent (3%) of the
                Termination Fee:  Maximum Dollar Amount (as defined in the
                                  Schedule), if termination occurs on or before
                                  the first anniversary of the effective date of
                                  this Agreement; two percent (2%) of the
                                  Maximum Dollar Amount, if termination occurs
                                  after the first anniversary and on or before
                                  the second anniversary of the effective date
                                  of this Agreement; and one percent (1%) of the
                                  Maximum Dollar Amount, if termination occurs
                                  after the second anniversary date of this
                                  Agreement, except as permitted in Section 9.1.


                                       22
<PAGE>   26

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

SECTION 5 - CONDITIONS PRECEDENT

  Section 5.2 - Minimum           $500,000 at funding
                Availability:

  Section 5.14 - Other            1. Continuing Guaranty of Symposium
                 Documents and       Corporation;
                 Agreements:      2. UCC-1 financing statements, fixture filings
                                     and termination statements;
                                  3. Security Agreements (including those
                                     covering copyrights, patents and
                                     trademarks).
                                  4. Validity and Support Agreements from Ronald
                                     Altbach and Tim Ledwick; and
                                  5. Such additional documents and instruments
                                     as Coast may require.

  Section 5.15 - Other            1. All collections through a blocked account
                Conditions:          or lock box in form reasonably acceptable
                                     to Coast.
                                  2. No accounts payable shall be over 90 days
                                     old from invoice date.
                                  3. All applicable taxes shall be current.
                                  4. Coast shall have a first priority perfected
                                     security interest in all assets of
                                     Borrower, real and personal, (except for
                                     Permitted Liens) including, without
                                     limitation, in all trademarks, copyrights
                                     and patents.
                                  5. Borrower shall have raised cash equity of
                                     not less than $7,000,000, and shall have
                                     raised an additional $5,000,000 of cash
                                     equity on or before December 31, 1999.
                                     Borrower shall provide to Coast documents
                                     indicating that there exists sufficient
                                     commitments to raise the additional
                                     $5,000,000 by such date, including a list
                                     of investors with their respective amounts
                                     of commitment, all satisfactory to Coast in
                                     its reasonable discretion. The failure of
                                     Borrower to obtain the additional cash
                                     equity by December 31, 1999 shall be an
                                     Event of Default.
                                  6. Symposium shall have contributed to
                                     Borrower not less than $6,000,000 in cash
                                     equity.
                                  7. Coast shall have reviewed and not
                                     disapproved in its discretion each of the
                                     following: Kane Reece & Associates business
                                     valuation; all documents related to the
                                     purchase of the assets of Direct Sales
                                     International ("DSI"); all contracts
                                     between Borrower and publishers and
                                     telemarketing agents; background checks
                                     with key officers of Borrower; Dun and
                                     Bradstreet report and state and local
                                     searches; and private placement memorandum
                                     used to raise Symposium Corporation's
                                     equity.
                                  8. Concurrent consummation of the asset
                                     purchase of DSI by Borrower.

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

SECTION 6 - REPRESENTATIONS, WARRANTIES AND COVENANTS

  Section 6.2 - Prior Names of    None
                Borrower:

  Section 6.2 - Prior Trade Names None
                of Borrower:

  Section 6.2 - Existing Trade    Media Outsourcing
                Names of
                Borrower:


                                       23
<PAGE>   27

  Section 6.3 - Other Locations
                and Addresses:

  Section 6.10 - Material Adverse None
                 Litigation:

  Section 6.10 - Future Claims    Borrower will promptly inform Coast in writing
                 and Litigation:  of any claim, proceeding, litigation or
                                  investigation in the future threatened or
                                  instituted by or against Borrower involving
                                  any single claim of Fifty Thousand Dollars
                                  ($50,000) or more, or involving One Hundred
                                  Thousand Dollars ($100,000) or more in the
                                  aggregate.


                                       24
<PAGE>   28

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

SECTION 8 - ADDITIONAL DUTIES OF BORROWER

                                  [text continued on next page]

  Section 8.1 - Other             1. All applicable taxes shall be currently
                Provisions           paid at all times
                and Covenants:
                                  2. Borrower's accounting system as acquired
                                     from Direct Sales International, LP shall
                                     be replaced by a new accounting system, as
                                     represented to Coast, as created or
                                     initiated by Borrower, which shall be in
                                     operation within 120 days from the Closing
                                     Date. The new accounting system shall run
                                     parallel to the accounting system acquired
                                     by Borrower for a minimum of 90 days after
                                     the new accounting system is operational.

                                  3. Measured on the Closing Date and on a
                                     quarterly basis thereafter, Borrower shall
                                     have a Tangible Net Worth of not less than
                                     $4,750,000 increasing by 80% of Borrower's
                                     after tax net income.

                                  4. Notwithstanding anything to the contrary
                                     herein, so long as no Event of Default has
                                     occurred and is continuing, Borrower may
                                     advance or loan to Symposium Corporation up
                                     to $150,000 per month in the aggregate
                                     including management fees. Borrower may
                                     additionally advance to Symposium
                                     Corporation any amounts necessary to pay
                                     for the tax obligations of Symposium
                                     Corporation attributable solely to the
                                     income of Borrower.

                                  5. Measured quarterly, Borrower's ratio of
                                     EBITDA minus maintenance capital
                                     expenditures divided by payments to Coast
                                     of principal and interest shall not be less
                                     than 1.40:1.

                                  6. It shall constitute an Event of Default if
                                     Symposium Corporation does not have a
                                     consolidated net worth (defined as
                                     shareholder equity plus subordinated debt)
                                     of not less than $12,000,000.

                                  7. Without limiting the covenants in this
                                     Agreement including, without limitation,
                                     those set forth in Section 8.5, Coast shall
                                     have a right of first refusal to finance
                                     all acquisitions by Symposium Corporation,
                                     to the extent that such acquisitions are
                                     financed by borrowing of funds. Coast shall
                                     promptly reply to a written notification by
                                     Borrower outlining the terms of any such
                                     proposed financing.

                                  8. Borrower shall notify Coast in writing
                                     within five (5) Business Days if Borrower
                                     becomes aware of any investigation or claim
                                     of any violation or potential violation by
                                     Borrower of any laws relating to
                                     telemarketing.

                                  9. If at any time either Ronald Altbach or Tim
                                     Ledwick ceases to be an employee of
                                     Borrower, Borrower shall require an officer
                                     of equal or greater position to execute a
                                     Validity and Support Agreement in the form
                                     executed by Ronald Altbach. Borrower's
                                     failure to do so within 30 days shall
                                     constitute an Event of Default.

                                  10. Any violation of the terms of that certain
                                     letter dated January 13, 1999 from Rupert
                                     Galliers-Pratt to Symposium Corporation, a
                                     copy of which has been delivered to Coast
                                     as of the date hereof, shall constitute an
                                     Event of Default.


                                       25
<PAGE>   29

                                  11. Borrower has represented to Coast and
                                     continues to represent that Richard
                                     Prochnow shall not be an officer, director,
                                     or employee or otherwise involved in the
                                     daily operations of Symposium Corporation
                                     or Borrower, provided that Richard Prochnow
                                     may be a consultant from time to time of
                                     Symposium Corporation or Borrower.

  Section 8.2 - Insurance:        Subject to the limitations set forth in
                                  Section 8.2 of the Agreement, Coast shall
                                  release to Borrower insurance proceeds with
                                  respect to Equipment totaling less than Fifty
                                  Thousand Dollars ($50,000).

  Section 8.3 - Reporting:        Borrower shall provide Coast with the
                                  following:

                                  1. Weekly collection reports.

                                  2. Monthly verification of publisher
                                     remittances.

                                  3. Monthly Receivable agings, aged by invoice
                                     date and by customer in alphabetical order,
                                     within five (5) days after the end of each
                                     month together with a monthly deferred
                                     revenue listing to be sorted by customer in
                                     alphabetical order.

                                  4. Monthly accounts payable agings, aged by
                                     invoice date, and outstanding or held check
                                     registers within five (5) days after the
                                     end of each month.

                                  5. Monthly internally prepared financial
                                     statements, as soon as available, and in
                                     any event within thirty (30) days after the
                                     end of each month.

                                  6. Quarterly internally prepared financial
                                     statements, as soon as available, and in
                                     any event within forty-five (45) days after
                                     the end of each fiscal quarter of Borrower.

                                  7. Quarterly customer lists, including
                                     customer name, address, and phone number.

                                  8. Annual financial statements, as soon as
                                     available, and in any event within ninety
                                     (90) days following the end of Borrower's
                                     fiscal year, containing the unqualified
                                     opinion of, and certified by, an
                                     independent certified public accountant
                                     acceptable to Coast.

  Section 8.5 Negative            Fifty Thousand Dollars ($50,000)
              Covenants
              (Acquired Assets):

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

SECTION 9 - TERM

  Section 9.1 -  Maturity Date:   The last Business Day of the month three (3)
                                  years from the Closing Date, subject to
                                  automatic renewal as provided in Section 9.1
                                  of the Agreement, and early termination as
                                  provided in Section 9.2 of the Agreement.


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