Document:

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                                                                   EXHIBIT 10.22

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,THIS NOTE HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),
AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED UNLESS SO REGISTERED OR AN
EXEMPTION FROM REGISTRATION UNDER THE ACT IS AVAILABLE.

                                  ZEFER Corp.

           Convertible Subordinated Promissory Note Due May 28, 2002

$2,000,000                                                Boston, Massachusetts
                                                                   May 28, 1999

     ZEFER Corp., a Delaware corporation (the "Company"), for value received,
hereby promises to pay to Renaissance Worldwide, Inc. ("Renaissance"), or its
registered assigns (the "Holder"), the principal sum of Two Million Dollars
($2,000,000) in eight equal quarterly installments of $250,000 on the 28th day
of May, August, November and February (each a "Quarterly Payment Date")
commencing on May __, 2000, and to pay interest (computed on the basis of a 365-
day year) from the date hereof on the unpaid balance of such principal amount
from time to time outstanding at the rate equal to the 30-day LIBOR rate, as
announced by The Wall Street Journal, plus 200 basis points per annum, on each
Quarterly Payment Date commencing August 28, 1999 and continuing until May 28,
2002.

     This Note has been issued by the Company in connection with the Asset
Purchase Agreement, dated as of May 19, 1999, among the Company, Renaissance and
Neoglyphics Media Corporation (the "Purchase Agreement"), and in conjunction
with (i) the Agreement to be Bound by Registration Agreement, dated May 28,
1999, among Renaissance and certain existing stockholders of the Company (the
"GTCR Partners") and (ii) the Agreement to be Bound by Stockholders Agreement,
dated May 28, 1999, among Renaissance and the GTCR Partners, reference to each
of which is made for a statement of certain additional rights and benefits to
which the Holder is entitled.
<PAGE>

1.   Subordination.
     -------------

     The Holder agrees that it will, without payment of additional
consideration, agree to such customary subordination provisions as any holder of
Senior Indebtedness (as defined below) may from time to time request and, the
Holder shall execute and deliver to any holder of Senior Indebtedness (i) any
such instrument as such holder of Senior Indebtedness may request in order to
confirm the subordination of this Note to such Senior Indebtedness upon the
terms so agreed, and (ii) any powers of attorney specifically confirming the
rights of holders of Senior Indebtedness to enforce such subordination and all
such proofs of claim, assignments of claim and other instruments as may be
requested by the holders of Senior Indebtedness or their representatives to
enforce all claims upon or in respect of this Note. "Senior Indebtedness" means
the principal of, and premium, if any, and interest on (i) all indebtedness of
the Company for monies borrowed from banks, trust companies, insurance companies
and other financial institutions, including commercial paper and accounts
receivable sold or assigned by the Company to such institutions, (ii)
obligations of the Company as lessee under capital leases, (iii) principal of,
and premium, if any, and interest on any indebtedness or obligations of others
of the kinds described in (i) and (ii) above assumed or guaranteed in any manner
by the Company, (iv) deferrals, renewals, extensions and refundings of any such
indebtedness of the Company which the Company and the holder this Note may
hereafter from time to time expressly and specifically agree in writing shall
constitute Senior Indebtedness.

2.   Conversion.
     ----------

     (a)  Subject to and in compliance with the provisions of this Section 2,
prior to the payment in full of the principal amount of this Note, the Holder
may convert the outstanding principal amount of this Note, in whole or in part,
into such number of fully paid, nonassessable shares of common stock, $.01 par
value per share ("Common Stock"), of the Company as is determined by dividing
the aggregate principal amount to be so converted by the applicable Conversion
Price (as defined below and as adjusted pursuant to the provision of Section
2(c)).

     (b)  If, prior to May __, 2002, the Company files a registration statement
for an initial public offering, of its Common Stock ("IPO"), the Company shall,
within five business days of the initial filing of such registration statement,
send written notice of such filing (the "Filing Notice") to the Holder. The
Holder shall, within 30 days from the date of receipt of the Filing Notice (but
in any event no later than the printing of the red herring prospectus for the
IPO), determine whether or not it will convert the outstanding principal amount
of this Note, in whole or in part, into shares of Common Stock in accordance
with this Section 2 and shall send an irrevocable, written notice to the Company
of such election (the "Election Notice"). If, upon the expiration of such 30-day
period, the Holder has not elected to convert this

                                      -2-
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Note into shares of Common Stock or has not notified the Company of its
election, the Holder shall forfeit, its right to convert this Note into Common
Stock hereunder. If the Holder has elected to convert this Note into shares of
Common Stock pursuant to this Section 2(a), such conversion shall become
effective immediately prior to the effectiveness of the registration statement
for the IPO.

     (c)  For purposes of this Section 2, the "Conversion Price" at which Common
Stock shall be issuable upon conversion of this Note shall be equal to the
product of (A) the per share price to the public of the Common Stock in the IPO
and (B) .8. The Holder and the Company expressly acknowledge and agree that any
rights under this Section 2 are conditioned upon the closing of the IPO.

     (d)  Surrender of Note and Delivery of Certificates.  When surrendered for
          ----------------------------------------------
conversion this Note shall, unless the shares issuable on conversion are to be
issued in the same name as the name in which this Note is then registered, be
duly endorsed by, or accompanied by instruments of transfer in form satisfactory
to the Company duly executed by, the Holder or his or its duly authorized
attorney. As promptly as practicable after the surrender of this Note for
conversion and the receipt of the Election Notice, the Company shall deliver or
cause to be delivered at its principal executive office to the Holder, or on the
Holder's written order, a certificate or certificates for the number of full
shares issuable upon the conversion of this Note, or portion hereof, in
accordance with the provisions hereof. Such conversion shall be deemed to have
been made at the time this Note shall have been surrendered for conversion and
the Election Notice shall have been received by the Company at its principal
executive office (the "Conversion Date"), and the Holder in whose name any
certificate or certificates for shares of Common Stock shall be issuable upon
such conversion shall be deemed to have become on the Conversion Date the holder
of record of the shares represented thereby. If less than the entire outstanding
principal amount of this Note is being converted, a new Note shall promptly be
delivered to the holder for the unconverted principal balance and shall be of
like tenor as to all terms as the Note surrendered.

     (e)  Adjustment of Conversion Price.
          ------------------------------

          (i)  In case the Company shall:

               (A)  declare a dividend of Common Stock on its Common Stock;

               (B)  subdivide outstanding Common Stock into a larger number of
          shares of Common Stock by reclassification, stock split or otherwise;
          or

                                      -3-
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               (C)  combine outstanding Common Stock into a smaller number of
          shares of Common Stock by reclassification, reverse stock split or
          otherwise, the number of shares of Common Stock issuable upon
          conversion of this Note immediately prior to any such event shall be
          adjusted proportionately so that thereafter the Holder shall be
          entitled to receive upon conversion of this Note the number of shares
          of Common Stock which such Holder would have owned after the happening
          of any of the events described above had this Note been converted
          immediately prior to the happening of such event; provided, however,
          that the Conversion Price shall in no event be reduced to less than
          the par value of the shares issuable upon conversion. An adjustment
          made pursuant to this Section 2(c) shall become effective immediately
          after the record date in the case of a dividend and shall become
          effective immediately after the effective date in the case of a
          subdivision or combination.

          (ii) If, prior to maturity of this Note, the Company shall at any time
consolidate or merge with another corporation (other than a merger or
consolidation in which the Company is the surviving corporation), the Holder
will thereafter be entitled to receive, upon the conversion hereof, the
securities or property to which a holder of the number of shares of Common Stock
then deliverable upon the conversion hereof would have been entitled upon such
consolidation or merger, and the Company shall take such steps in connection
with such consolidation or merger as may be necessary to ensure that the
provisions hereof shall thereafter be applicable, as nearly as reasonably may
be, in relation to any securities or property thereafter deliverable upon the
conversion of this Note.

     (f)  Notice. In case the Company proposes to take any action referred to in
          ------
Section 2(c) above, or to effect the liquidation, dissolution or winding up of
the Company, then the Company shall cause notice thereof to be mailed to the
Holder, at such Holder's address appearing in the Note Register, at least twenty
(20) days prior to the date on which the transfer books of the Company shall
close or a record be taken for such stock dividend or the date when such
reclassification, liquidation, dissolution or winding up shall be effective, as
the case may be.

     (g)  Statement of Adjustment.  Whenever the Conversion Price shall be
          -----------------------
adjusted as provided in Section 2(c) above, the Company shall forthwith file at
each office designated for the conversion of Subordinated Notes, a statement,
signed by the Chairman of the Board, the President, any Vice President, the
Treasurer or Secretary of the Company, showing in reasonable detail the facts
requiring such adjustment and the Conversion Price that will be effective after
such adjustment. The Company shall also cause a notice setting forth any such
adjustment to be sent by mail, first class, postage prepaid, to each record
holder of Subordinated Notes at his or its address appearing on the Note
Register. Where appropriate, such notice may

                                      -4-
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be given in advance and may be included as part of a notice required to be
mailed under the provisions of Section 2(d) hereof.

     (h)  Fractional Shares.  No fractional shares of Common Stock shall be
          -----------------
issuable upon conversion of this Note, but a payment in cash will be made in
respect of any fraction of a share which would otherwise be issuable upon the
surrender of this Note, or portion hereof, for conversion. Such payment shall be
based on the fair market value of the Common Stock at the time of conversion of
this Note, as determined in good faith by the Board of Directors.

     (i)  Accrued Interest. Upon the conversion of this Note, the Company shall
          ----------------
not be required to pay any accrued but unpaid interest on the amount so
converted up to the Conversion Date.

     (j)  Securities Act of 1933.  Upon conversion of this Note, the Holder may
          ----------------------
be required to execute and deliver to the Company an instrument, in form
satisfactory to the Company, representing that the shares issuable upon
conversion hereof are being acquired for investment and not with a view to
distribution within the meaning of the Securities Act of 1933, as amended.

3.   No Prepayment of Principal.  Except as otherwise provided in Section 6(g),
     --------------------------
the principal indebtedness represented by this Note may not be prepaid in whole
or in part, without the prior written consent of the Holder.

4.   Default.
     -------

     Subject to the subordination provisions of Section 1, the entire unpaid
principal of this Note and the interest then accrued on this Note shall become
and be immediately due and payable upon written demand of the Holder, without
any other notice or demand of any kind or any presentment or protest, if any one
of the following events shall occur and be continuing at the time of such
demand, whether voluntarily or involuntarily, or, without limitation, occurring
or brought about by operation of law or pursuant to or in compliance with any
judgment, decree or order of any court or any order, rule or regulation of any
governmental body:

     (a)  if default shall be made in the payment of any installment of
principal of Note, or of any installment of interest on this Note, and if any
such default shall remain unremedied for ten (10) days; or

     (b)  if the Company (i) makes a composition or an assignment for the
benefit of creditors or trust mortgage, (ii) applies for, consents to,
acquiesces in, files a petition seeking or admits (by answer, default or
otherwise) the material allegations of a petition filed against it seeking the
appointment of a trustee, receiver or liquidator, in bankruptcy or otherwise, of
itself or of all or a substantial portion of its

                                      -5-
<PAGE>

assets, or a reorganization, arrangement with creditors or other remedy, relief
or adjudication available to or against a bankrupt, insolvent or debtor under
any bankruptcy or insolvency law or any law affecting the rights of creditors
generally, or (iii) admits in writing its inability to pay its debts generally
as they become due; or

     (c)  if an order for relief shall have been entered by a bankruptcy court
or if a decree, order or judgment shall have been entered adjudging the Company
insolvent, or appointing a receiver, liquidator, custodian or trustee, in
bankruptcy or otherwise, for it or for all or a substantial portion of its
assets, or approving the winding-up or liquidation of its affairs on the grounds
of insolvency or nonpayment of debts, and such order for relief, decree, order
or judgment shall remain undischarged or unstayed for a period of sixty (60)
days; or if any substantial part of the property of the Company is sequestered
or attached and shall not be returned to the possession of the Company or such
subsidiary or released from such attachment within sixty (60) days.

5.   Note Register.
     -------------

     (a)  The Company shall keep at its principal executive office a register
(herein sometimes referred to as the "Note Register"), in which, subject to such
reasonable regulations as it may prescribe, but at its expense (other than
transfer taxes, if any), the Company shall provide for the registration and
transfer of this Note.

     (b)  Whenever this Note shall be surrendered at the principal executive
office of the Company for transfer or exchange, accompanied by a written
instrument of transfer in form reasonably satisfactory to the Company duly
executed by the Holder or his or its attorney duly authorized in writing, the
Company shall execute and deliver in exchange therefor a new Note or Notes, as
may be requested by such Holder, in the same aggregate unpaid principal amount
and payable on the same date as the principal amount of the Note or Notes so
surrendered; each such new Note shall be dated as of the date to which interest
has been paid on the unpaid principal amount of the Note or Notes so surrendered
and shall be in such principal amount and registered in such name or names as
such Holder may designate in writing.

     (c)  Upon receipt by the Company of evidence reasonably satisfactory to it
of the loss, theft, destruction or mutilation of this Note and of indemnity
reasonably satisfactory to it, and upon reimbursement to the Company of all
reasonable expenses incidental thereto, and upon surrender and cancellation of
this Note (in case of mutilation) the Company will make and deliver in lieu of
this Note a new Note of like tenor and unpaid principal amount and dated as of
the date to which interest has been paid on the unpaid principal amount of this
Note in lieu of which such new Note is made and delivered.

                                      -6-
<PAGE>

6.   General.
     -------

     (a)  Successors and Assigns. This Note, and the obligations and rights of
          ----------------------
the Company hereunder, shall be binding upon and inure to the benefit of the
Company, the holder of this Note, and their respective heirs, successors and
assigns.

     (b)  Recourse. Recourse under this Note shall be to the general unsecured
          --------
assets of the Company only and in no event to the officers, directors or
stockholders of the Company.

     (c)  Changes.  Changes in or additions to this Note may be made or
          -------
compliance with any term, covenant, agreement, condition or provision set forth
herein may be omitted or waived (either generally or in a particular instance
and either retroactively or prospectively), upon written consent of the Company
and the holder of the Note then outstanding.

     (d)  Currency.  All payments shall be made in such coin or currency of the
          --------
United States of America as at the time of payment shall be legal tender therein
for the payment of public and private debts.

     (e)  Notices.  All notices, requests, consents and demands shall be made in
          -------
writing and shall be mailed postage prepaid, or delivered by hand, to the
Company or to the holder hereof at their respective addresses set forth below or
to such other address as may be furnished in writing to the other party hereto:

          If to the Holder:

          Renaissance Worldwide, Inc.
          189 Wells Avenue
          Newton, Massachusetts 02159
          Attention: General Counsel

          If to the Company:

          ZEFER Corp.
          105 South Street
          Boston, Massachusetts 02111
          Attention: General Counsel

     (f)  Saturdays, Sundays, Holidays.  If any date that may at any time be
          ----------------------------
specified in this Note as a date for the making of any payment of principal or
interest under this Note shall fall on Saturday, Sunday or on a day which in the
Boston,

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<PAGE>

Massachusetts shall be a legal holiday, then the date for the making of that
payment shall be the next subsequent day which is not a Saturday, Sunday or
legal holiday.

     (g) This Note is subject to and entitled to the benefits of the Purchase
Agreement.  The Company may, in accordance with the provisions of Section 8.5 of
the Purchase Agreement, elect to credit against amounts otherwise payable under
this Note any unpaid amounts claimed by the Company against Renaissance under
Article VIII of the Purchase Agreement. The rights of the Company under this
Section 6(g) shall be enforceable against Renaissance and any subsequent holder
of this Note.

     (h) Governing Law.  This Note shall be construed and enforced in accordance
         -------------
with, and the rights of the parties shall be governed by, the laws of the
Commonwealth of Massachusetts.

    IN WITNESS WHEREOF, this Note has been executed and delivered as a sealed
instrument on the date first above written by the duly authorized representative
of the Company.

                        ZEFER CORP.

                        By:  /s/ William Seibel
                             ------------------
                             President

[Corporate Seal]

ATTEST: /s/ Sean Mullaney
        -----------------
         Secretary

                                      -8-<PAGE>

                                                                   EXHIBIT 10.27

________________________________________________________________________________

                          LOAN AND SECURITY AGREEMENT
                                   ZEFER CORP

________________________________________________________________________________
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                               Page
                                                                               ----
<S>                                                                            <C>
1  ACCOUNTING AND OTHER TERMS................................................   4
   --------------------------

2  LOAN AND TERMS OF PAYMENT.................................................   4
   -------------------------
     2.1  Advances...........................................................   4
     2.2  Overadvances.......................................................   4
     2.3  Interest Rate, Payments............................................   4
     2.4  Fees...............................................................   5

3  CONDITIONS OF LOANS.......................................................   5
   -------------------
     3.1  Conditions Precedent to Initial Advance............................   5
     3.2  Conditions Precedent to all Advances...............................   5

4  CREATION OF SECURITY INTEREST.............................................   5
   -----------------------------
     4.1  Grant of Security Interest.........................................   5

5  REPRESENTATIONS AND WARRANTIES............................................   5
   ------------------------------
     5.1  Due Organization and Authorization.................................   5
     5.2  Collateral.........................................................   6
     5.3  Litigation.........................................................   6
     5.4  No Material Adverse Change in Financial Statements.................   6
     5.5  Solvency...........................................................   6
     5.6  Regulatory Compliance..............................................   6
     5.7  Subsidiaries.......................................................   6
     5.8  Full Disclosure....................................................   6

6  AFFIRMATIVE COVENANTS.....................................................   7
   ---------------------
     6.1  Government Compliance..............................................   7
     6.2  Financial Statements, Reports, Certificates........................   7
     6.3  Inventory; Returns.................................................   7
     6.4  Taxes..............................................................   7
     6.5  Insurance..........................................................   7
     6.6  Primary Accounts...................................................   8
     6.7  Financial Covenants................................................   8
     6.8  Further Assurances.................................................   8

7  NEGATIVE COVENANTS........................................................   8
   ------------------
     7.1  Dispositions.......................................................   8
     7.2  Changes in Business, Ownership, Management or Business Locations...   8
     7.3  Mergers or Acquisitions............................................   8
     7.4  Indebtedness.......................................................   8
     7.5  Encumbrance........................................................   9
     7.6  Distributions; Investments.........................................   9
     7.7  Transactions with Affiliates.......................................   9
     7.8  Subordinated Debt..................................................   9
     7.9  Compliance.........................................................   9

8  EVENTS OF DEFAULT........................................................    9
   -----------------
     8.1  Payment Default....................................................   9
     8.2  Covenant Default...................................................   9
</TABLE>

                                       2

<PAGE>

<TABLE>
<S>                                                       <C>
      8.3   Material Adverse Change.....................   9
      8.4   Attachment..................................  10
      8.5   Insolvency..................................  10
      8.6   Other Agreements............................  10
      8.7   Judgments...................................  10
      8.8   Misrepresentations..........................  10

9  BANK'S RIGHTS AND REMEDIES...........................  10
   --------------------------
      9.1   Rights and Remedies.........................  10
      9.2   Power of Attorney...........................  11
      9.3   Accounts Collection.........................  11
      9.4   Bank Expenses...............................  11
      9.5   Bank's Liability for Collateral.............  11
      9.6   Remedies Cumulative.........................  11
      9.7   Demand Waiver...............................  12

10 NOTICES..............................................  12
   -------

11 CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER...........  12
   ------------------------------------------

12 GENERAL PROVISIONS.......................... ........  12
   ------------------
      12.1  Successors and Assigns......................  12
      12.2  Indemnification.............................  12
      12.3  Time of Essence.............................  12
      12.4  Severability of Provision...................  13
      12.5  Amendments in Writing, Integration..........  13
      12.6  Counterparts................................  13
      12.7  Survival....................................  13
      12.8  Confidentiality.............................  13
      12.9  Attorneys' Fees, Costs and Expenses.........  13
      12.10 Countersignatures...........................  13

13  DEFINITIONS.........................................  14
    -----------
      13.1  Definitions.................................  14
</TABLE>

                                       3

<PAGE>

       This LOAN AND SECURITY AGREEMENT dated December 16, 1998, between SILICON
VALLEY BANK ("Bank"), whose address is 3003 Tasman Drive, Santa Clara,
California 95054 a loan production office located 40 William Street, Wellesley,
MA 02481 and ZEFER CORP ("Borrower"), whose address is 107 South Street, Boston,
Massachusetts 02111 provides the terms on which Bank will lend to Borrower and
Borrower will repay Bank. The parties agree as follows:

1      ACCOUNTING AND OTHER TERMS
       --------------------------

       Accounting terms not defined in this Agreement will be construed
following GAAP Calculations and determinations must be made following GAAP. The
term "financial statements" includes the notes and schedules. The terms
"including" and "includes" always mean "including (or includes) without
limitation," in this or any Loan Document. This Agreement shall be construed to
impart upon Bank a duty to act reasonably at all times.

2      LOAN AND TERMS OF PAYMENT
       -------------------------

2.1    Advances.

       Borrower will pay Bank the unpaid principal amount of all Advances and
interest on the unpaid principal amount of the Advances.

2.1.1  Revolving Advances.

       (a) Bank will make Advances not exceeding the lesser of (A) the Committed
Revolving Line or (B) the Borrowing Base, whichever is less. Amounts borrowed
under this Section may be repaid and reborrowed during the term of this
Agreement.

       (b) To obtain an Advance, Borrower must notify Bank by facsimile or
telephone by 3:00 p.m. Eastern time on the Business Day the Advance is to be
made. Borrower must promptly confirm the notification by delivering to Bank the
Payment/Advance Form attached as Exhibit B. Bank will credit Advances to
Borrower's deposit account. Bank may make Advances under this Agreement based on
instructions from a Responsible Officer or his or her designee or without
instructions if the Advances are necessary to meet Obligations which have become
due. Bank may rely on any telephone notice given by a person whom Bank believes
is a Responsible Officer or designee. Borrower will indemnify Bank for any loss
Bank suffers due to reliance.

       (c) The Committed Revolving Line terminates on the Revolving Maturity
Date, when all Advances and other amounts due under this Agreement are
immediately payable.

2.2    Overadvances.

       If Borrower's Obligations under Section 2.1.1 exceed the lesser of either
(i) the Committed Revolving Line or (ii) the Borrowing Base, Borrower must
immediately pay Bank the excess.

2.3    Interest Rate, Payments.

       (a) Interest Rate. Advances accrue interest on the outstanding principal
balance at a per annum rate of 0.50 of one percentage point above the Prime
Rate. After an Event of Default. Obligations accrue interest at 5.00 percent
above the rate effective immediately before the Event of Default. The interest
rate increases or decreases when the Prime Rate changes. Interest is computed on
a 360 day year for the actual number of days elapsed.

       (b) Payments. Interest due on the Committed Revolving Line is payable on
the 16th of each month. Bank may debit any of Borrower's deposit accounts
including Account Number

                                       4
<PAGE>

______________________ for principal and interest payments or any amounts
Borrower owes Bank. Bank will notify Borrower when it debits Borrower's
accounts. These debits are not a set-off. Payments received after 12:00 noon
Eastern time are considered received at the opening of business on the next
Business Day. When a payment is due on a day that is not a Business Day, the
payment is due the next Business Day and additional fees or interest accrue.

2.4   Fees.

      Borrower will pay:

      (a) Bank Expenses. All Bank Expenses (including reasonable attorneys' fees
and expenses) incurred through and after the date of this Agreement, are payable
when due.

3     CONDITIONS OF LOANS
      -------------------

3.1   Conditions Precedent to Initial Advance.

      Bank's obligation to make the initial Advance is subject to the condition
precedent that it receive the agreements, documents and fees it requires and

      Bank's completion of a Collateral audit with results acceptable to Bank.

3.2   Conditions Precedent to all Advances.

      Bank's obligations to make each Advance, including the initial Advance, is
subject to the following:

      (a) timely receipt of any Payment/Advance Form; and

      (b) the representations and warranties in Section 5 must be materially
true on the date of the Payment/Advance Form and on the effective date of each
Advance and no Event of Default may have occurred and be continuing, or result
from the Advance. Each Advance is Borrower's representation and warranty on that
date that the representations and warranties of Section 5 remain true.

4     CREATION OF SECURITY INTEREST
      -----------------------------

4.1   Grant of Security Interest.

      Borrower grants Bank a continuing security interest in all presently
existing and later acquired Collateral to secure all Obligations and performance
of each of Borrowers duties under the Loan Documents. Except for Permitted
Liens, any security interest will be a first priority security interest in the
Collateral. Bank may place a "hold" on any deposit account pledged as
Collateral.

5     REPRESENTATIONS AND WARRANTIES
      ------------------------------

      Borrower represents and warrants as follows:

5.1   Due Organization and Authorization.

      Borrower and each Subsidiary is duly existing and in good standing in its
state of formation and qualified and licensed to do business in, and in good
standing in, any state in which the conduct of its business or its ownership of
property requires that it be qualified.

      The execution, delivery and performance of the Loan Documents have been
duly authorized, and do not conflict with Borrower's formation documents, nor
constitute an event of default under any material

                                       5
<PAGE>

agreement by which Borrower is bound. Borrower is not in default under any
agreement to which or by which it is bound in which the default could cause a
Material Adverse Change.

5.2   Collateral.

      Borrower has good title to the Collateral, free of Liens except Permitted
Liens. The Accounts are bona fide, existing obligations, and the service or
property has been performed or delivered to the account debtor or its agent for
immediate shipment to and unconditional acceptance by the account debtor.
Borrower has no notice of any actual or imminent Insolvency Proceeding of any
account debtor whose accounts are an Eligible Account in any Borrowing Base
Certificate. All Inventory is in all material respects of good and marketable
quality, free from material defects.

5.3   Litigation.

      Except as shown in the Schedule, there are no actions or proceedings
pending or, to Borrower's knowledge, threatened by or against Borrower or any
Subsidiary in which an adverse decision could cause a Material Adverse Change.

5.4   No Material Adverse Change in Financial Statements.

      All consolidated financial statements for Borrower, and any Subsidiary,
delivered to Bank fairly present in all material respects Borrowers consolidated
financial condition and Borrower's consolidated results of operations. There has
not been any material deterioration in Borrower's consolidated financial
condition since the date of the most recent financial statements submitted to
Bank.

5.5   Solvency.

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

5.6   Regulatory Compliance.

      Borrower is not an "investment company" or a company "controlled" by an
"investment company" under the Investment Company Act. Borrower is not engaged
as one of its important activities in extending credit for margin stock (under
Regulations G, T and U of the Federal Reserve Board of Governors). Borrower has
complied with the Federal Fair Labor Standards Act. Borrower has not violated
any laws, ordinances or rules, the violation of which could cause a Material
Adverse Change. None of Borrower's or any Subsidiary's properties or assets has
been used by Borrower or any Subsidiary or, to the best of Borrower's knowledge,
by previous Persons, in disposing, producing, storing, treating, or transporting
any hazardous substance other than legally. Borrower and each Subsidiary has
timely filed all required tax returns and paid, or made adequate provision to
pay, all taxes, except those being contested in good faith with adequate
reserves under GAAP. Borrower and each Subsidiary has obtained all consents,
approvals and authorizations of, made all declarations or filings with, and
given all notices to, all government authorities that are necessary to continue
its business as currently conducted.

5.7   Subsidiaries.

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

                                       6
<PAGE>

5.8   Full Disclosure.

      No representation, warranty or other statement of Borrower in any
certificate or written statement given to Bank contains any untrue statement of
a material fact or omits to state a material fact necessary to make the
statements contained in the certificates or statements not misleading.

6     AFFIRMATIVE COVENANTS
      ---------------------

      Borrower will do all of the following:

6.1   Government Compliance.

      Borrower will maintain its and all Subsidiaries' legal existence and good
standing in its jurisdiction of formation and maintain qualification in each
jurisdiction in which the failure to so qualify could have a material adverse
effect on Borrower's business or operations. Borrower will comply, and have each
Subsidiary comply, with all laws, ordinances and regulations to which it is
subject, noncompliance with which could have a material adverse effect on
Borrower's business or operations or cause a Material Adverse Change.

6.2   Financial Statements, Reports, Certificates.

      (a) Borrower will deliver to Bank: (i) as soon as available, but no later
than 30 days after the last day of each month, a company prepared consolidated
balance sheet and income statement covering Borrowers consolidated operations
during the period, in a form and certified by a Responsible Officer acceptable
to Bank; (ii) as soon as available, but no later than 120 days after the last
day of Borrower's fiscal year, audited consolidated financial statements
prepared under GAAP, consistently applied, together with an unqualified opinion
on the financial statements from an independent certified public accounting firm
acceptable to Bank; (iii) a prompt report of any legal actions pending or
threatened against Borrower or any Subsidiary that could result in damages or
costs to Borrower or any Subsidiary of $100,000 or more; and (iv) budgets, sales
projections, operating plans or other financial information Bank requests.

      (b) Within 20 days after the last day of each month, Borrower will deliver
to Bank a Borrowing Base Certificate signed by a Responsible Officer in the form
of Exhibit C, with aged listings of accounts receivable.

      (c) Within 30 days after the last day of each month, Borrower will deliver
to Bank with the monthly financial statements a Compliance Certificate signed by
a Responsible Officer in the form of Exhibit D.

      (d) Bank has the right to audit Borrowers Collateral at Borrower's
expense, but the audits will be conducted no more often than every year unless
an Event of Default has occurred and is continuing. Notwithstanding the
foregoing, Bank shall conduct an Collateral audit prior to the first Advance
hereunder.

6.3   Inventory; Returns.

      Borrower will keep all Inventory in good and marketable condition, free
from material defects. Returns and allowances between Borrower and its account
debtors will follow Borrowers customary practices as they exist at execution of
this Agreement. Borrower must promptly notify Bank of all returns, recoveries,
disputes and claims, that involve more than $50,000.

6.4   Taxes.

      Borrower will make, and cause each Subsidiary to make, timely payment of
all material federal, state, and local taxes or assessments and will deliver to
Bank, on demand, appropriate certificates attesting to the payment.

                                       7
<PAGE>

6.5   Insurance.

      Borrower will keep its business and the Collateral insured for risks and
in amounts, as Bank requests. Insurance policies will be in a form, with
companies, and in amounts that are satisfactory to Bank. All property policies
will have a lender's loss payable endorsement showing Bank as an additional loss
payee and all liability policies will show the Bank as an additional insured and
provide that the insurer must give Bank at least 20 days notice before canceling
its policy. At Bank's request, Borrower will deliver certified copies of
policies and evidence of all premium payments. Proceeds payable under any policy
will, at Bank's option, be payable to Bank on account of the Obligations.

6.6   Primary Accounts.

      Borrower will maintain its primary depository and operating accounts with
Bank.

6.7   Financial Covenants.

      Borrower will maintain as of the last day of each month:

          (i)  Quick Ratio [Adjusted].  A ratio of Quick Assets to Current
Liabilities minus Deferred Maintenance Revenue of at least 1.50 to 1.00.

          (ii) Tangible Net Worth. A Tangible Net Worth of at least $200,000.

6.8   Further Assurances.

      Borrower will execute any further instruments and take further action as
Bank requests to perfect or continue Bank's security interest in the Collateral
or to effect the purposes of this Agreement.

7     NEGATIVE COVENANTS
      ------------------

      Borrower will not do any of the following:

7.1   Dispositions.

      Convey, sell, lease, transfer or otherwise dispose of (collectively
"Transfer"), or permit any of its Subsidiaries to Transfer, all or any part of
its business or property, other than Transfers (i) of Inventory in the ordinary
course of business; (ii) of non-exclusive licenses and similar arrangements for
the use of the property of Borrower or its Subsidiaries in the ordinary course
of business; or (iii) of worn-out or obsolete Equipment.

7.2   Changes in Business, Ownership, Management or Business Locations.

      Engage in or permit any of its Subsidiaries to engage in any business
other than the businesses currently engaged in by Borrower or have a material
change in its ownership of greater than 25%. Borrower will not, without at least
30 days prior written notice, relocate its chief executive office or add any new
offices or business locations.

7.3   Mergers or Acquisitions.

      (i) Merge or consolidate, or permit any of its Subsidiaries to merge or
consolidate. with any other Person, or acquire, or permit any of its
Subsidiaries to acquire, all or substantially all of the capital stock or
property of another Person, except (i) where no Event of Default has occurred
and is continuing or would

                                       8
<PAGE>

result from such action during the term of this Agreement or (ii) result in a
decrease of more than 25% of Tangible Net Worth; or (iii) merge or consolidate a
Subsidiary into another Subsidiary or into Borrower.

7.4   Indebtedness.

      Create, incur, assume, or be liable for any Indebtedness, or permit any
Subsidiary to do so, other than Permitted Indebtedness.

7.5   Encumbrance.

      Create, incur, or allow any Lien on any of its property, or assign or
convey any right to receive income, including the sale of any Accounts, or
permit any of its Subsidiaries to do so, except for Permitted Liens, or permit
any Collateral not to be subject to the first priority security interest granted
here.

7.6   Distributions; Investments.

      Directly or indirectly acquire or own any Person, or make any Investment
in any Person, other than Permitted Investments, or permit any of its
Subsidiaries to do so. Pay any dividends or make any distribution or payment or
redeem, retire or purchase any capital stock.

7.7   Transactions with Affiliates.

      Directly or indirectly enter or permit any material transaction with any
Affiliate except transactions that are in the ordinary course of Borrower's
business, on terms less favorable to Borrower than would be obtained in an arm's
length transaction with a non-affiliated Person.

7.8   Subordinated Debt.

      Make or permit any payment on any Subordinated Debt, except under the
terms of the Subordinated Debt, or amend any provision in any document relating
to the Subordinated Debt without Bank's prior written consent.

7.9   Compliance.

      Become an "investment company" or a company controlled by an "investment
company" under the Investment Company Act of 1940 or undertake as one of its
important activities extending credit to purchase or carry margin stock, or use
the proceeds of any Advance for that purpose; fail to meet the minimum funding
requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as
defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards
Act or violate any other law or regulation, if the violation could have a
material adverse effect on Borrowers business or operations or cause a Material
Adverse Change, or permit any of its Subsidiaries to do so.

8     EVENTS OF DEFAULT
      -----------------

      Any one of the following is an Event of Default:

8.1   Payment Default.

      If Borrower fails to pay any of the Obligations;

8.2   Covenant Default.

      If Borrower does not perform any obligation in Section 6 or violates any
covenant in Section 7 or does not perform or observe any other material term,
condition or covenant in this Agreement, any Loan

                                       9
<PAGE>

Documents, or in any agreement between Borrower and Bank and as to any default
under a term, condition or covenant that can be cured, has not cured the default
within 10 days after it occurs, or if the default cannot be cured within 10 days
or cannot be cured after Borrower's attempts within 10 day period, and the
default may be cured within a reasonable time, then Borrower has an additional
period (of not more than 30 days) to attempt to cure the default. During the
additional time, the failure to cure the default is not an Event of Default (but
no Advances will be made during the cure period);

8.3  Material Adverse Change.

     (i) If there occurs a material impairment in the perfection or priority of
the Bank's security interest in the Collateral or in the value of such
Collateral which is not covered by adequate insurance or (ii) if the Bank
determines, based upon information available to it and in its reasonable
judgment that there is a reasonable likelihood that Borrower will fail to comply
with one or more of the financial covenants in Section 6 during the next
succeeding financial reporting period.

8.4  Attachment.

     If any material portion of Borrower's assets is attached, seized, levied
on, or comes into possession of a trustee or receiver and the attachment,
seizure or levy is not removed in 10 days, or if Borrower is enjoined,
restrained, or prevented by court order from conducting a material part of its
business or if a judgment or other claim becomes a Lien on a material portion of
Borrowers assets, or if a notice of lien, levy, or assessment is filed against
any of Borrower's assets by any government agency and not paid within 10 days
after Borrower receives notice. These are not Events of Default if stayed or if
a bond is posted pending contest by Borrower (but no Advances will be made
during the cure period);

8.5  Insolvency.

     If Borrower becomes insolvent or if Borrower begins an Insolvency
Proceeding or an Insolvency Proceeding is begun against Borrower and not
dismissed or stayed within 30 days (but no Advances will be made before any
Insolvency Proceeding is dismissed);

8.6  Other Agreements.

     If there is a default in any agreement between Borrower and a third party
that gives the third party the right to accelerate any Indebtedness exceeding
$100,000 or that could cause a Material Adverse Change;

8.7  Judgments.

     If a money judgment(s) in the aggregate of at least $50,000 is rendered
against Borrower and is unsatisfied and unstayed for 10 days (but no Advances
will be made before the judgment is stayed or satisfied); or

8.8  Misrepresentations.

     If Borrower or any Person acting for Borrower makes any material
misrepresentation or material misstatement now or later in any warranty or
representation in this Agreement or in any writing delivered to Bank or to
induce Bank to enter this Agreement or any Loan Document.

                                       10
<PAGE>

9     BANK'S RIGHTS AND REMEDIES
      --------------------------

9.1   Rights and Remedies.

      When an Event of Default occurs and continues Bank may without notice or
demand, do any or all of the following:

      (a) Declare all Obligations immediately due and payable (but if an Event
of Default described in Section 8.5 occurs all Obligations are immediately due
and payable without any action by Bank);

      (b) Stop advancing money or extending credit for Borrower's benefit under
this Agreement or under any other agreement between Borrower and Bank;

      (c) Settle or adjust disputes and claims directly with account debtors for
amounts, on terms and in any order that Bank considers advisable;

      (d) Make any payments and do any acts it considers necessary or reasonable
to protect its security interest in the Collateral.  Borrower will assemble the
Collateral if Bank requires and make it available as Bank designates.  Bank may
enter premises where the Collateral is located, take and maintain possession of
any part of the Collateral, and pay, purchase, contest, or compromise any Lien
which appears to be prior or superior to its security interest and pay all
expenses incurred.  Borrower grants Bank a license to enter and occupy any of
its premises, without charge, to exercise any of Bank's rights or remedies;

      (e) Apply to the Obligations any (i) balances and deposits of Borrower it
holds. or (ii) any amount held by Bank owing to or for the credit or the account
of Borrower;

      (f) Ship, reclaim, recover, store, finish, maintain, repair, prepare for
sale, advertise for sale, and sell the Collateral; and

      (g) Dispose of the Collateral according to the Code.

9.2   Power of Attorney.

      Effective only when an Event of Default occurs and continues, Borrower
irrevocably appoints Bank as its lawful attorney to: (i) endorse Borrower's name
on any checks or other forms of payment or security; (ii) sign Borrowers name on
any invoice or bill of lading for any Account or drafts against account debtors,
(iii) make, settle, and adjust all claims under Borrower's insurance policies;
(iv) settle and adjust disputes and claims about the Accounts directly with
account debtors, for amounts and on terms Bank determines reasonable; and (v)
transfer the Collateral into the name of Bank or a third party as the Code
permits.  Bank may exercise the power of attorney to sign Borrower's name on any
documents necessary to perfect or continue the perfection of any security
interest regardless of whether an Event of Default has occurred.  Bank's
appointment as Borrower's attorney in fact, and all of Bank's rights and powers,
coupled with an interest, are irrevocable until all Obligations have been fully
repaid and performed and Bank's obligation to provide Advances terminates.

9.3   Accounts Collection.

      When an Event of Default occurs and continues, Bank may notify any Person
owing Borrower money of Bank's security interest in the funds and verify the
amount of the Account. Borrower must collect all payments in trust for Bank and,
if requested by Bank, immediately deliver the payments to Bank in the form
received from the account debtor, with proper endorsements for deposit.

                                       11
<PAGE>

9.4   Bank Expenses.

      If Borrower fails to pay any amount or furnish any required proof of
payment to third persons Bank may make all or part of the payment or obtain
insurance policies required in Section 6.5, and take any action under the
policies Bank deems prudent.  Any amounts paid by Bank are Bank Expenses and
immediately due and payable, bearing interest at the then applicable rate and
secured by the Collateral.  No payments by Bank are deemed an agreement to make
similar payments in the future or Bank's waiver of any Event of Default.

9.5   Bank's Liability for Collateral.

      If Bank complies with reasonable banking practices it is not liable for:
(a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral;
(c) any diminution in the value of the Collateral; or (d) any act or default of
any carrier, warehouseman, bailee, or other person. Borrower bears all risk of
loss, damage or destruction of the Collateral.

9.6   Remedies Cumulative.

      Bank's rights and remedies under this Agreement, the Loan Documents, and
all other agreements are cumulative.  Bank has all rights and remedies provided
under the Code, by law, or in equity.  Bank's exercise of one right or remedy is
not an election, and Bank's waiver of any Event of Default is not a continuing
waiver.  Bank's delay is not a waiver, election, or acquiescence. No waiver is
effective unless signed by Bank and then is only effective for the specific
instance and purpose for which it was given.

9.7   Demand Waiver.

      Borrower waives demand, notice of default or dishonor, notice of payment
and nonpayment, notice of any default, nonpayment at maturity, release,
compromise, settlement, extension, or renewal of accounts, documents,
instruments, chattel paper, and guarantees held by Bank on which Borrower is
liable.

10    NOTICES
      -------

      All notices or demands by any party about this Agreement or any other
related agreement must be in writing and be personally delivered or sent by an
overnight delivery service, by certified mail, postage prepaid, return receipt
requested, or by telefacsimile to the addresses set forth at the beginning of
this Agreement.  A Party may change its notice address by giving the other Party
written notice.

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

      THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE COMMONWEALTH OF MASSACHUSETTS WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW. EACH OF BORROWER AND BANK HEREBY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE COMMONWEALTH OF
MASSACHUSETTS, BUT IF FOR ANY REASON THE BANK IS DENIED ACCESS TO SUCH COURTS,
THEN THE VENUE WILL BE IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF
SANTA CLARA, STATE OF CALIFORNIA.

      BORROWER AND BANK EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE
LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR
STATUTORY CLAIMS.  EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER
CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT.

                                       12
<PAGE>

EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS
LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

12    GENERAL PROVISIONS
      ------------------

12.1  Successors and Assigns.

      This Agreement binds and is for the benefit of the successors and
permitted assigns of each party.  Borrower may not assign this Agreement or any
rights under it without Bank's prior written consent which may be granted or
withheld in Bank's discretion.  Bank has the right, without the consent of or
notice to Borrower, to sell, transfer, negotiate, or grant participation in all
or any part of, or any interest in, Bank's obligations, rights and benefits
under this Agreement.

12.2  Indemnification.

      Borrower will indemnify, defend and hold harmless Bank and its officers,
employees, and agents against: (a) all obligations, demands, claims, and
liabilities asserted by any other party in connection with the transactions
contemplated by the Loan Documents; and (b) all losses or Bank Expenses
incurred, or paid by Bank from, following, or consequential to transactions
between Bank and Borrower (including reasonable attorneys fees and expenses),
except for losses caused by Bank's gross negligence or willful misconduct.

12.3  Time of Essence.

      Time is of the essence for the performance of all obligations in this
Agreement.

12.4  Severability of Provision.

      Each provision of this Agreement is severable from every other provision
in determining the enforceability of any provision.

12.5  Amendments in Writing, Integration.

      All amendments to this Agreement must be in writing and signed by Borrower
and Bank. This Agreement represents the entire agreement about this subject
matter, and supersedes prior negotiations or agreements.  All prior agreements,
understandings, representations, warranties, and negotiations between the
parties about the subject matter of this Agreement merge into this Agreement and
the Loan Documents.

12.6  Counterparts.

      This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and
delivered, are an original, and all taken together, constitute one Agreement.

12.7  Survival.

      All covenants, representations and warranties made in this Agreement
continue in full force while any Obligations remain outstanding.  The
obligations of Borrower in Section 12.2 to indemnify Bank will survive until all
statutes of limitations for actions that may be brought against Bank have run.

                                       13
<PAGE>

12.8  Confidentiality.

      In handling any confidential information, Bank will exercise the same
degree of care that it exercises for its own proprietary information, but
disclosure of information may be made (i) to Bank's subsidiaries or affiliates
in connection with their business with Borrower, (ii) to prospective transferees
or purchasers of any interest in the Loans, (iii) as required by law,
regulation, subpoena, or other order, (iv) as required in connection with Bank's
examination or audit and (v) as Bank considers appropriate exercising remedies
under this Agreement. Confidential information does not include information that
either:  (a) is in the public domain or in Bank's possession when disclosed to
Bank, or becomes part of the public domain after disclosure to Bank; or (b) is
disclosed to Bank by a third party, if Bank does not know that the third party
is prohibited from disclosing the information.

12.9  Attorneys' Fees, Costs and Expenses.

      In any action or proceeding between Borrower and Bank arising out of the
Loan Documents, the prevailing party will be entitled to recover its reasonable
attorneys' fees and other costs and expenses incurred, in addition to any other
relief to which it may be entitled.

12.10 Countersignatures.

      This Agreement shall become effective only when it shall have been
executed by Borrower and Bank (provided, however, in no event shall this
Agreement become effective until signed by an officer of Bank in California).

13    DEFINITIONS
      -----------

13.1  Definitions.

      In this Agreement:

      "Accounts" are all existing and later arising accounts, contract rights.
and other obligations owed Borrower in connection with its sale or lease of
goods (including licensing software and other technology) or provision of
services, all credit insurance, guaranties, other security and all merchandise
returned or reclaimed by Borrower and Borrower's Books relating to any of the
foregoing.

      "Advance" or "Advances" is a loan advance (or advances) under the
Committed Revolving Line.

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

      "Bank Expenses" are all audit fees and expenses and reasonable costs or
expenses (including reasonable attorneys' fees and expenses) for preparing,
negotiating, administering, defending and enforcing the Loan Documents
(including appeals or Insolvency Proceedings).

      "Borrower's Books" are all Borrowers books and records including ledgers,
records regarding Borrower's assets or liabilities, the Collateral, business
operations or financial condition and all computer programs or discs or any
equipment containing the information.

      "Borrowing Base" is 80% of Eligible Accounts as determined by Bank from
Borrower's most recent Borrowing Base Certificate.

      "Business Day" is any day that is not a Saturday, Sunday or a day on which
the Bank is closed.

                                       14
<PAGE>

      "Closing Date" is the date of this Agreement.

      "Code" is the Massachusetts Uniform Commercial Code.

      "Collateral" is the property described on Exhibit A.
                                                ---------

      "Committed Revolving Line" is an Advance of up to $200,000.

      "Contingent Obligation" is, for any Person, any direct or indirect
liability, contingent or not, of that Person for (i) any indebtedness, lease,
dividend, letter of credit or other obligation of another such as an obligation
directly or indirectly guaranteed, endorsed, co-made, discounted or sold with
recourse by that Person, or for which that Person is directly or indirectly
liable; (ii) any obligations for undrawn letters of credit for the account of
that Person; and (iii) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other
agreement or arrangement designated to protect a Person against fluctuation in
interest rates, currency exchange rates or commodity prices; but "Contingent
Obligation" does not include endorsements in the ordinary course of business.
The amount of a Contingent Obligation is the stated or determined amount of the
primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by
the Person in good faith; but the amount may not exceed the maximum of the
obligations under the guarantee or other support arrangement.

      "Current Liabilities" are the aggregate amount of Borrower's Total
Liabilities which mature within one (1) year.

      "Deferred Maintenance Revenue" is all amounts received in advance of
performance under maintenance contracts and not yet recognized as revenue.

      "Eligible Accounts" are Accounts in the ordinary course of Borrower's
business that meet all Borrower's representations and warranties in Section 5.2;

but Bank may change eligibility standards by giving Borrower notice.  Unless
---
Bank agrees otherwise in writing, Eligible Accounts will not include:

      (a) Accounts that the account debtor has not paid within 90 days of
          invoice date;

      (b) Accounts for an account debtor, 50% or more of whose Accounts have not
          been paid within 90 days of invoice date;

      (c) Credit balances over 90 days from invoice date;

      (d) Accounts for an account debtor, including Affiliates, whose total
          obligations to Borrower exceed 35% of all Accounts, for the amounts
          that exceed that percentage, unless the Bank approves in writing;

      (e) Accounts for which the account debtor does not have its principal
          place of business in the United States, unless approved by Bank in
          writing,

      (f) Accounts for which the account debtor is a federal, state or local
          government entity or any department, agency, or instrumentality;

      (g) Accounts for which Borrower owes the account debtor, but only up to
          the amount owed (sometimes called "contra" accounts, accounts payable,
          customer deposits or credit accounts);

                                       15
<PAGE>

      (h) Accounts for demonstration or promotional equipment or in which goods
          are consigned, sales guaranteed, sale or return, sale on approval,
          bill and hold, or other terms if account debtor's payment may be
          conditional;

      (i) Accounts for which the account debtor is Borrower's Affiliate,
          officer, employee or agent;

      (j) Accounts in which the account debtor disputes liability or makes any
          claim and Bank believes there may be a basis for dispute (but only up
          to the disputed or claimed amount), or if the Account Debtor is
          subject to an Insolvency Proceeding, or becomes insolvent, or goes out
          of business;

      (k) Accounts for which Bank reasonably determines collection to be
          doubtful.

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

      "ERISA" is the Employment Retirement Income Security Act of 1974, and its
regulations.

      "GAAP" is generally accepted accounting principles.

      "Indebtedness" is (a) indebtedness for borrowed money or the deferred
price of property or services, such as reimbursement and other obligations for
surety bonds and letters of credit, (b) obligations evidenced by notes, bonds,
debentures or similar instruments, (c) capital lease obligations and (d)
Contingent Obligations.

      "Insolvency Proceeding" are proceedings by or against any Person under the
United States Bankruptcy Code, or any other bankruptcy or insolvency law,
including assignments for the benefit of creditors, compositions, extensions
generally with its creditors, or proceedings seeking reorganization,
arrangement, or other relief.

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

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

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

      "Loan Documents" are, collectively. this Agreement, any note, or notes or
guaranties executed by Borrower or Guarantor, and any other present or future
agreement between Borrower and/or for the benefit of Bank in connection with
this Agreement, all as amended, extended or restated.

      "Material Adverse Change" is defined in Section 8.3.

      "Obligations" are debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, including letters of credit and
Exchange Contracts and including interest accruing after Insolvency Proceedings
begin and debts, liabilities, or obligations of Borrower assigned to Bank.

                                       16
<PAGE>

      "Permitted Indebtedness" is:

      (a) Borrower's indebtedness to Bank under this Agreement or any other Loan
          Document;

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

      (c) Subordinated Debt;

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

      (e) Indebtedness secured by Permitted Liens.

      "Permitted Investments" are:

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

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

      "Permitted Liens" are:

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

      (b) Liens for taxes, fees, assessments or other government charges or
levies. either not delinquent or being contested in good faith and for which
Borrower maintains adequate reserves on its Books, if they have no priority over
                                                   --
any of Bank's security interests;

      (c) Purchase money Liens (i) on Equipment acquired or held by Borrower or
its Subsidiaries incurred for financing the acquisition of the Equipment, or
(ii) existing on equipment when acquired, if the Lien is confined to the
                                          --
property and improvements and the proceeds of the equipment;

      (d) Leases or subleases and licenses or sublicenses granted in the
ordinary course of Borrower's business and any interest or title of a lessor,
licensor or under any lease or license, if the leases, subleases, licenses and
                                        ---
sublicenses permit granting Bank a security interest;

      (e) Liens incurred in the extension, renewal or refinancing of the
indebtedness secured by Liens described in (a) through (c), but any extension,
                                                            ---
renewal or replacement Lien must be limited to the property encumbered by the
existing Lien and the principal amount of the indebtedness may not increase.

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

      "Prime Rate" is Bank's most recently announced "prime rate," even if it is
not Bank's lowest rate.

      "Quick Assets" is, on any date, the Borrower's consolidated, unrestricted
cash, cash equivalents, net billed accounts receivable and investments with
maturates of fewer than 12 months determined according to GAAP.

                                       17
<PAGE>

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

      "Revolving Maturity Date" is December 15, 1999.

      "Schedule" is any attached schedule of exceptions.

      "Subordinated Debt" is debt incurred by Borrower subordinated to
Borrower's debt to Bank (and identified as subordinated by Borrower and Bank).

      "Subsidiary" is for any Person, or any other business entity of which more
than 50% of the voting stock or other equity interests is owned or controlled,
directly or indirectly, by the Person or one or more Affiliates of the Person.

      "Tangible Net Worth" is, on any date, the consolidated total assets of
Borrower and its Subsidiaries minus, (i) any amounts attributable to (a)
                              -----
goodwill, (b) intangible items such as unamortized debt discount and expense,
Patents, trade and service marks and names, Copyrights and research and
development expenses except prepaid expenses, and (c) reserves not already
deducted from assets, and (ii) Total Liabilities plus Subordinated Debt
                      ---

      "Total Liabilities" is on any day, obligations that should, under GAAP, be
classified as liabilities on Borrower's consolidated balance sheet, including
all Indebtedness, and current portion Subordinated Debt allowed to be paid, but
excluding all other Subordinated Debt.

BORROWER:

Zefer Corp

By:____________________

Title:_________________

BANK:

SILICON VALLEY BANK

By:____________________

Title:_________________

                                       18
<PAGE>

                                   EXHIBIT A
                                   ---------

     The Collateral consists of all of Borrower's right title and interest in
and to the following:

     All goods and equipment now owned or hereafter acquired, including, without
limitation, all machinery, fixtures, vehicles (including motor vehicles and
trailers), and any interest in any of the foregoing, and all attachments,
accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing, wherever located;

     All inventory, now owned or hereafter acquired, including, without
limitation, all merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products including such
inventory as is temporarily out of Borrower's custody or possession or in
transit and including any returns upon any accounts or other proceeds, including
insurance proceeds, resulting from the sale or disposition of any of the
foregoing and any documents of title representing any of the above;

     All contract rights and general intangibles now owned or hereafter
acquired, including, without limitation, goodwill, trademarks, servicemarks,
trade styles, trade names, patents, patent applications, leases, license
agreements, franchise agreements, blueprints, drawings, purchase orders,
customer lists, route lists, infringements, claims, computer programs, computer
discs, computer tapes, literature, reports, catalogs, design rights, income tax
refunds, payments of insurance and rights to payment of any kind;

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

     All documents, cash, deposit accounts, securities, securities entitlements,
securities accounts, investment property, financial assets, letters of credit,
certificates of deposit, instruments and chattel paper now owned or hereafter
acquired and Borrower's Books relating to the foregoing:

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

All Borrower's Books relating to the foregoing and any and all claims, rights
and interests in any of the above and all substitutions for, additions and
accessions to and proceeds thereof.

                                       19

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