Document:

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                                                                  EXHIBIT 10.1

                      SECOND LOAN MODIFICATION AGREEMENT

     This Second Loan Modification Agreement is entered into as of July 25,
2000, by and between SEACHANGE INTERNATIONAL, INC., a Delaware corporation with
its principal place of business at 124 Acton Street, Maynard, Massachusetts
("Borrower"), and SILICON VALLEY BANK, a California-chartered bank ("Lender"),
with its principal place of business at 3003 Tasman Drive, Santa Clara, CA 95054
and with a loan production office located at Wellesley Office Park, 40 William
Street, Suite 350, Wellesley, MA 02481, doing business under the name "Silicon
Valley East".

1.   DESCRIPTION OF EXISTING INDEBTEDNESS. Among other indebtedness which may be
     ------------------------------------
owing by Borrower to Lender, Borrower is indebted to Lender pursuant to, among
other documents, a Loan and Security Agreement dated November 10, 1998, as
amended by First Loan Modification Agreement dated as of March 27, 2000 (as
may be amended, the "Loan Agreement"). Capitalized terms used but not otherwise
defined herein shall have the same meaning as in the Loan Agreement.

Hereinafter, all indebtedness owing by Borrower to Lender shall be referred to
as the "Indebtedness".

2.   DESCRIPTION OF COLLATERAL AND GUARANTIES. Repayment of the Indebtedness is
     ----------------------------------------
secured as described in the Loan Agreement (together with any other collateral
security granted to Lender, the "Security Documents").

Hereinafter, the Security Documents, together with all other documents
evidencing or securing the Indebtedness shall be referred to as the "Existing
Loan Documents".

3.   DESCRIPTION OF CHANGE IN TERM.
     -----------------------------

     A.   Modifications to Loan Agreement.
          -------------------------------

          1.   The Loan Agreement shall be amended by deleting the following
               definitions:

               "Approved Foreign Accounts" means Accounts with respect to which
               the account debtor does not have its principal place of business
               in the United States, which the Bank approves on a case by case
               basis.

               "Eligible Foreign Accounts" means Accounts with respect to which
               the account debtor does not have its principal place of business
               in the United States or Canada and that are: (1) covered by
               credit insurance in form and amount, and by an insurer
               satisfactory to Bank less the amount of any deductible(s) which
               may be or become owing thereon; or (2) supported by one or more
               letters of credit in an amount and of a tenor, and issued by a
               financial institution, acceptable to Bank.

          2.   The Loan Agreement shall be amended by deleting the following
               definition in Section 1.1:

               "Code" means the California Uniform Commercial Code."

               and substituting therefor the following:
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               "Code" means the Uniform Commercial Code, as adopted in
               Massachusetts, as may be amended from time to time."

          3.   The Loan Agreement shall be amended by deleting the following
               definition in Section 1.1:

          "Eligible Accounts" means those Accounts that arise in the ordinary
          course of Borrower's business that comply with all of Borrower's
          representations and warranties to Bank set forth in Section 5.4.
          Unless otherwise agreed to by Bank in writing, Eligible Accounts shall
          not include the following:

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

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

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

               (d)  Accounts with respect to which the account debtor does not
          have its principal place of business in the United States, except for
          account debtors having their principal place of business in Canada;

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

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

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

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

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

                                      -2-
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               (j)  Accounts the collection of which Bank reasonably determines
          in accordance with its standard commercial practices to be doubtful.

               and by substituting therefor the following:

          "Eligible Accounts" means those Accounts that arise in the ordinary
          course of Borrower's business that comply with all of Borrower's
          representations and warranties to Bank set forth in Section 5.4.
          Unless otherwise agreed to by Bank in writing, Eligible Accounts shall
          not include the following:

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

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

               (c)  Accounts with respect to an account debtor, including
          Affiliates, whose total obligations to Borrower exceed thirty-five
          percent (35%) of all Accounts (forty percent (40.0%) for Time Warner
          Accounts), which shall be limited to fifteen percent (15.0%) per site
          (twenty percent (20.0%) for Time Warner Accounts), to the extent such
          obligations exceed the aforementioned percentage, except as approved
          in writing by Bank;

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

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

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

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

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

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

                                      -3-
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               (j)  Accounts the collection of which Bank reasonably determines
          in accordance with its standard commercial practices to be doubtful.

          4.   The Loan Agreement shall be amended by deleting the following
               definition for Maturity Date:

               ""Maturity Date" means, as applicable, (i) the Revolving Maturity
               Date with respect to Advances, and (ii) the Equipment Maturity
               Date No. 1 and the Equipment Maturity Date No. 2, as applicable,
               with respect to Equipment Advances."

               and substituting therefor the following:

               ""Maturity Date" means, as applicable, (i) the Revolving Maturity
               Date with respect to Advances, and (ii) the Equipment Maturity
               Date No. 1, Equipment Maturity Date No. 2, Equipment Maturity
               Date No. 3, Equipment Maturity Date No. 4, and Equipment Maturity
               Date No. 5, as applicable, with respect to Equipment Advances."

          5.   The Loan Agreement shall be amended by deleting the following
               definition for Committed Equipment Line:

               "Committed Equipment Line" means a credit extension of up to
               Three Million Dollars ($3,000,000.00) for Equipment Line No. 1,
               and Equipment Line No. 2, plus Two Million Dollars
               ($2,000,000.00) for Equipment Line No. 3."

               and substituting therefor the following"

               "Committed Equipment Line" means a credit extension of up to
               Three Million Dollars ($3,000,000.00) for Equipment Line No. 1,
               and Equipment Line No. 2, plus Two Million Dollars
               ($2,000,000.00) for Equipment Line No. 3, plus Four Million
               Dollars ($4,000,000.00) for Equipment Line No. 4."

          6.   The Loan Agreement shall be amended by deleting the following
               definition for Committed Revolving Line:

               "Committed Revolving Line" means a credit extension of up to Six
               Million Dollars ($6,000,000.00)."

               and substituting therefor the following:

               "Committed Revolving Line" means a credit extension of up to
               Seven Million Five Hundred Thousand Dollars ($7,500,000.00)."

          7.   The Loan Agreement shall be amended by deleting the following
               definition for Revolving Maturity Date:

               ""Revolving Maturity Date" means March 31, 2000."

               and substituting therefor the following:

                                      -4-
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               ""Revolving Maturity Date" means March 31, 2001"

          8.   The Loan Agreement shall be amended by deleting the following
               Section 2.3 (a):

               "(a) Interest Rate. Except as set forth in Section 2.3(b), any
                    -------------
               Advances under the Committed Revolving Line shall bear interest,
               on the average daily balance thereof, at a per annum rate equal
               to: (i) One Half of One percent (0.5%) above the Prime Rate prior
               to the Debt Service Coverage Event, and (ii) the Prime Rate
               beginning on the date which is the Debt Service Coverage Event."

               and by substituting therefor the following:

               "(a) Interest Rate. Except as set forth in Section 2.3(b), any
                    -------------
               Advances under the Committed Revolving Line shall bear interest
               in accordance with the LIBOR Supplement to Agreement attached
               hereto as Appendix 1."
                         ----------

          9.   The Loan Agreement shall be amended by inserting into Section
               1.1, the following definitions:

               "Equipment Line No. 4" has the meaning set forth in Section
               2.1.2.

               "Equipment Availability End Date No. 4" has the meaning set forth
               in Section 2.12.

               "Equipment Availability End Date No. 5" has the meaning set forth
               in Section 2.1.2.

               "Equipment Maturity Date No. 4" means September 1, 2003.

               "Equipment Maturity Date No. 5" means March 1, 2004.

               "EXIM Loan" means a certain Export-Import Bank Loan and Security
               Agreement between the Borrower and Bank dated as of _________ __,
               2000, and all documents executed in connection therewith and
               related thereto.

          10.  The Loan Agreement shall be amended by deleting the following
               Section 2.1.2:

               "2.1.2    Equipment Advances.
                         ------------------

               (a)       Subject to and upon the terms and conditions of this
                         Agreement, Bank agrees to make advances (each an
                         "Equipment Advance" and collectively, the "Equipment
                         Advances") to Borrower: (i) in one advance to take
                                                        ---
                         place at any time after the Closing Date through thirty
                         (30) days after the Closing Date (the "Equipment
                         Availability End Date No. 1") in the aggregate
                         outstanding amount not to exceed Two Million Dollars
                         ($2,000,000.00) (the "Equipment Line No. 1"), and (ii)
                         at any time and from time to time from the Equipment
                         Availability End Date No. 1 through June 30, 1999 (the
                         "Equipment Availability End Date No. 2") in the
                         aggregate outstanding amount not to exceed Three
                         Million Dollars ($3,000,000.00) less the
                                                         ----

                                      -5-
<PAGE>

                         cumulative Equipment Advances made under Equipment Line
                         No. 1 (the "Equipment Line No. 2"), and (iii) at any
                         time and from time to time from March 13, 2000 through
                         March 31, 2000 (the "Equipment Availability End Date
                         No. 3") in the aggregate outstanding amount not to
                         exceed Two Million Dollars ($2,000,000.00) (the
                         "Equipment Line No. 3"). To evidence the Equipment
                         Advances, Borrower shall deliver to Bank, at the time
                         of each Equipment Advance request, an invoice for the
                         equipment to be purchased or refinanced. Equipment
                         Advance requests under Equipment Line No. 1 shall only
                         be permitted for Equipment purchased between July 2,
                         1997 and June 30, 1998. Equipment Advance requests
                         under Equipment Line No. 2 shall only be permitted for
                         Equipment purchased between July 1, 1998 and June 30,
                         1999. Equipment Advance requests under Equipment Line
                         No. 3 shall be used only for Equipment purchased
                         through March 31, 2000. The Equipment Advances shall be
                         used only to purchase or refinance Equipment and shall
                         not exceed: (i) eighty percent (80.0%) of the invoice
                         amount on such equipment, including software, approved
                         from time to time by Bank under Equipment Line No. 1,
                         and (ii) one hundred percent (100%) of the invoice
                         amount on such equipment, including software, approved
                         from time to time by Bank in accordance with its
                         standard commercial practices under Equipment Line No.
                         2, and Equipment Line No. 3, each of (i) and (ii)
                         excluding taxes, shipping, warranty charges, freight
                         discounts, and installation expense.

               (b)       Interest shall accrue from the date of each Equipment
                         Advance at the per annum rate of: (i) for Equipment
                         Line No. 1, and Equipment Line No. 2, one percent
                         (1.0%) above the Prime Rate, and (ii) for Equipment
                         Line No. 3, at one half of one percent (.50%) above the
                         Prime Rate. Interest shall be payable monthly on the
                         Payment Date of each month. Any Equipment Advances made
                         pursuant to the Equipment Line No. 1 that are
                         outstanding on the Equipment Availability End Date No.
                         1 will be payable in Thirty (30) equal monthly
                         installments of principal, plus all accrued interest,
                         beginning on the Payment Date of the month following
                         Equipment Availability End Date No. 1 and ending on the
                         Equipment Maturity Date No. 1. Any Equipment Advances
                         made pursuant to the Equipment Line No. 2 that are
                         outstanding on the Equipment Availability End Date No.
                         2 will be payable in Thirty-Six (36) equal monthly
                         installments of principal, plus all accrued interest,
                         beginning on the Payment Date of the month following
                         Equipment Availability End Date No. 2 and ending on the
                         Equipment Maturity Date No. 2. Any Equipment Advances
                         made pursuant to the Equipment Line No. 3 that are
                         outstanding on the Equipment Availability End Date No.
                         3 will be payable in Thirty-Six (36) equal monthly
                         installments of principal, plus all accrued interest,
                         beginning on the Payment Date of the month following
                         Equipment Availability End Date No. 3 and ending on the
                         Equipment Maturity Date No. 3. Equipment Advances, once
                         repaid, may not be reborrowed.

               (c)       When Borrower desires to obtain an Equipment Advance,
                         Borrower shall notify Bank (which notice shall be
                         irrevocable) by facsimile transmission to be received
                         no later than 3:00 p.m. Eastern time one (1) Business
                         Day before the day on which the Equipment Advance is to
                         be made. Such notice

                                      -6-
<PAGE>

                    shall be substantially in the form of Exhibit B. The notice
                    shall be signed by a Responsible Officer or its designee and
                    include a copy of the invoice for the Equipment to be
                    financed."

          and substituting therefor the following:

          "2.1.2    Equipment Advances.
                    ------------------

          (a)       Subject to and upon the terms and conditions of this
                    Agreement, Bank agrees to make advances (each an "Equipment
                    Advance" and collectively, the "Equipment Advances") to
                    Borrower: (i) in one advance to take place at any time after
                                     ---
                    the Closing Date through thirty (30) days after the Closing
                    Date (the "Equipment Availability End Date No. 1") in the
                    aggregate outstanding amount not to exceed Two Million
                    Dollars ($2,000,000.00) (the "Equipment Line No. 1"), and
                    (ii) at any time and from time to time from the Equipment
                    Availability End Date No. 1 through June 30, 1999 (the
                    "Equipment Availability End Date No. 2") in the aggregate
                    outstanding amount not to exceed Three Million Dollars
                    ($3,000,000.00) less the cumulative Equipment Advances made
                                    ----
                    under Equipment Line No. 1 (the "Equipment Line No. 2"), and
                    (iii) at any time and from time to time from March 13, 2000
                    through March 31, 2000 (the "Equipment Availability End Date
                    No. 3") in the aggregate outstanding amount not to exceed
                    Two Million Dollars ($2,000,000.00) (the "Equipment Line
                    No. 3"), and (iv) at any time and from time to time from
                    __________, 2000 through September 30, 2000 (the "Equipment
                    Availability End Date No. 4") in the aggregate outstanding
                    amount not to exceed Four Million Dollars ($4,000,000.00)
                    (the "Equipment Line No. 4"), and (v) at any time and from
                    time to time from the Equipment Availability End Date No. 4
                    through March 31, 2001 (the "Equipment Availability End
                    Date No. 5") in the aggregate outstanding amount not to
                    exceed Four Million Dollars ($4,000,000.00) less the
                                                                ----
                    cumulative Equipment Advances made under Equipment Line
                    No. 4. To evidence the Equipment Advances, Borrower shall
                    deliver to Bank, at the time of each Equipment Advance
                    request, an invoice for the equipment to be purchased or
                    refinanced. Equipment Advance requests under Equipment Line
                    No. 1 shall only be permitted for Equipment purchased
                    between July 2, 1997 and June 30, 1998. Equipment Advance
                    requests under Equipment Line No. 2 shall only be permitted
                    for Equipment purchased between July 1, 1998 and June 30,
                    1999. Equipment Advance requests under Equipment Line No. 3
                    shall be used only for Equipment purchased through March 31,
                    2000. Equipment Advance requests under Equipment Line No. 4
                    shall be used only for Equipment purchased on or after April
                    1, 2000. Equipment Advance Requests under Equipment Line
                    No. 5 shall be used only for Equipment purchased on or after
                    October 1, 2000, for invoices dated no more that sixty (60)
                    days prior to the requested Equipment Advance. The Equipment
                    Advances shall be used only to purchase or refinance
                    Equipment and shall not exceed: (i) eighty percent (80.0%)
                    of the invoice amount on such equipment, including
                    software, approved from time to time by Bank under Equipment
                    Line No. 1, and (ii) one hundred percent (100%) of the
                    invoice amount on such equipment, including software,
                    approved from time to time by Bank in accordance with its
                    standard commercial practices under

                                      -7-
<PAGE>

                    Equipment Line No. 2, Equipment Line No. 3, Equipment Line
                    No. 4, and Equipment Line No. 5 each of (i) and (ii)
                    excluding taxes, shipping, warranty charges, freight
                    discounts, and installation expense. No more that twenty
                    five percent (25.0%) of aggregate Equipment Advances shall
                    constitute software.

          (b)       Interest shall accrue from the date of each Equipment
                    Advance at the per annum rate of: (i) for Equipment Line No.
                    1, and Equipment Line No. 2, one percent (1.0%) above the
                    Prime Rate, and (ii) for Equipment Line Nos. 3, 4 and 5, at
                    one half of one percent (.50%) above the Prime Rate.
                    Interest shall be payable monthly on the Payment Date of
                    each month. Any Equipment Advances made pursuant to the
                    Equipment Line No. 1 that are outstanding on the Equipment
                    Availability End Date No. 1 will be payable in Thirty (30)
                    equal monthly installments of principal, plus all accrued
                    interest, beginning on the Payment Date of the month
                    following Equipment Availability End Date No. 1 and ending
                    on the Equipment Maturity Date No. 1. Any Equipment Advances
                    made pursuant to the Equipment Line No. 2 that are
                    outstanding on the Equipment Availability End Date No. 2
                    will be payable in Thirty-Six (36) equal monthly
                    installments of principal, plus all accrued interest,
                    beginning on the Payment Date of the month following
                    Equipment Availability End Date No. 2 and ending on the
                    Equipment Maturity Date No. 2. Any Equipment Advances made
                    pursuant to the Equipment Line No. 3 that are outstanding on
                    the Equipment Availability End Date No. 3 will be payable in
                    Thirty-Six (36) equal monthly installments of principal,
                    plus all accrued interest, beginning on the Payment Date of
                    the month following Equipment Availability End Date No. 3
                    and ending on the Equipment Maturity Date No. 3. Any
                    Equipment Advances made pursuant to the Equipment Line No. 4
                    that are outstanding on the Equipment Availability End Date
                    No. 4 will be payable in Thirty-Six (36) equal monthly
                    installments of principal, plus all accrued interest
                    beginning on the Payment Date of the month following
                    Equipment Availability End Date No. 4 and ending on the
                    Equipment Maturity Date No. 4. Any Equipment Advances made
                    pursuant to the Equipment Line No. 5 that are outstanding on
                    the Equipment Availability End Date No. 5 will be payable in
                    Thirty-Six (36) equal monthly installments of principal,
                    plus all accrued interest, beginning on the Payment Date of
                    the month following Equipment Availability End Date No. 5
                    and ending on the Equipment Maturity Date No. 5. Equipment
                    Advances, once repaid, may not be reborrowed.

          (c)       When Borrower desires to obtain an Equipment Advance,
                    Borrower shall notify Bank (which notice shall be
                    irrevocable) by facsimile transmission to be received no
                    later than 3:00 p.m. Eastern time one (1) Business Day
                    before the day on which the Equipment Advance is to be made.
                    Such notice shall be substantially in the form of Exhibit B.
                    The notice shall be signed by a Responsible Officer or its
                    designee and include a copy of the invoice for the Equipment
                    to be financed."

     11.  The Loan Agreement shall be amended by deleting the following in
          Section 6.3:

                                      -8-
<PAGE>

          "6.3  Financial Statements, Reports, Certificates. Borrower shall
                -------------------------------------------
          deliver to Bank: (a) as soon as available, but in any event within
          forty-five (45) days after the end of each quarter, a company prepared
          consolidated balance sheet and income statement covering Borrower's
          consolidated operations during such period, in a form and certified by
          an officer of Borrower reasonably acceptable to Bank; (b) as soon as
          available, but in any event within thirty (30) days after the end of
          each month, a company prepared consolidated revenue and expense
          statement covering Borrower's consolidated operations during such
          period, in form reasonably acceptable to Bank; (c) as soon as
          available, but in any event within ninety (90) days after the end of
          Borrower's fiscal year, audited consolidated financial statements of
          Borrower prepared in accordance with GAAP, consistently applied,
          together with an unqualified opinion on such financial statements of
          an independent certified public accounting firm reasonably acceptable
          to Bank; (d) promptly upon receipt of notice (thereof, a report of any
          legal actions pending or threatened against Borrower or any Subsidiary
          that could result in damages or costs to Borrower or any Subsidiary of
          Two Hundred Fifty Thousand Dollars ($250,000) or more; (e) prompt
          notice of any material change in the composition of the Intellectual
          Property Collateral, including, but not limited to, any subsequent
          ownership right of the Borrower in or to any Copyright, Patent or
          Trademark not specified in any intellectual property security
          agreement between Borrower and Bank or knowledge of an event other
          than information that is publicly available and applicable generally
          to Borrower's business practices and industry that materially
          adversely effects the value of the Intellectual Property Collateral;
          and (f) such budgets, sales projections, operating plans or other
          financial information as Bank may reasonably request from time to
          time.

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

          Within forty-five (45) days after the fast day of each quarter,
          Borrower shall deliver to Bank with the quarterly financial statements
          a Compliance Certificate signed by a Responsible Officer in
          substantially the form of Exhibit D hereto.
                                    ---------

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

          and inserting in lieu thereof the following:

           "6.3  Financial Statements, Reports, Certificates. Borrower shall
                 -------------------------------------------
           deliver to Bank: (a) as soon as available, but in any event within
           forty-five (45) days after the end of each quarter, a company
           prepared consolidated balance sheet and income statement covering
           Borrower's consolidated operations during such period, in a form and
           certified by an officer of Borrower reasonably acceptable to Bank;
           (b) as soon as available, but in any event within thirty (30) days
           after the end of each month, a company prepared consolidated revenue
           end expense statement covering Borrower's consolidated operations
           during such period. in form reasonably acceptable to Bank; (c) as
           soon as available, but in any event within one hundred twenty (120)
           days after the end of Borrower's fiscal year, audited consolidated
           financial statements of Borrower prepared in accordance with GAAP,
           consistently

                                      -9-
<PAGE>

          applied, together with an unqualified opinion on such financial
          statements of an independent certified public accounting firm
          reasonably acceptable to Bank; (d) promptly upon receipt of notice
          thereof, a report of any legal actions pending or threatened against
          Borrower or any Subsidiary that could result in damages or costs to
          Borrower or any Subsidiary of Two Hundred Fifty Thousand Dollars
          ($250,000) or more; (e) prompt notice of any material change in the
          composition of the Intellectual Property Collateral, including, but
          not limited to, any subsequent ownership right of the Borrower in or
          to any Copyright, Patent or Trademark not specified in any
          intellectual property security agreement between Borrower and Bank or
          knowledge of an event other than information that is publicly
          available and applicable generally to Borrower's business practices
          and industry that materially adversely effects the value of the
          Intellectual Property Collateral; and (f) such budgets, sales
          projections, operating plans or other financial information as Bank
          may reasonably request from time to time.

          Within twenty (20) days after the last day of each month in which any
          Credit Extensions are outstanding or requested, Borrower shall deliver
          to Bank a Borrowing Base Certificate signed by a Responsible Officer
          in substantially the form of Exhibit C hereto, together with aged
                                       ---------
          listings of accounts receivable.

          Within forty-five (45) days after the last day of each quarter,
          Borrower shall deliver to Bank with the quarterly financial statements
          a Compliance Certificate signed by a Responsible Officer in
          substantially the form of Exhibit D hereto.
                                    ---------

          Bank shall have a right from time to time hereafter to audit
          Borrower's Accounts at Borrower's expense, provided that such audits
          will be conducted no more often than every twelve (12) months unless
          an Event of Default has occurred and is continuing."

     12.  The Loan Agreement shall be amended by deleting the following
          financial covenant appearing as Section 6.12:

          "6.12  Profitability. Borrower shall maintain, measured as of the last
                 -------------
          day of each quarter: (i) a profit of One Hundred Thousand Dollars
          ($100,000.00) as of the last day of the first quarter of fiscal year
          2000; (ii) a profit of Two Hundred Thousand Dollars ($200,000.00) as
          of the last day of the second and third quarters of fiscal year 2000;
          and (iii) a profit of Three Hundred Thousand Dollars ($300,000.00) as
          of the last day of the fourth quarter of fiscal year 2000, with an
          allowance for one quarterly loss during such fiscal year of no greater
          than One Hundred Thousand Dollars ($100,000.00). Notwithstanding the
          foregoing, the Borrower shall maintain a profit for fiscal year 2000
          of Eight Hundred Thousand Dollars ($800,000.000)."

          and substituting the following:

          "6.12  Profitability. Borrower shall maintain, measured as of the last
                 -------------
          day of each quarter: (i) a profit of One Hundred Thousand Dollars
          ($100,000.00) as of the last day of the first quarter of fiscal year
          2001; (ii) a profit of Two Hundred Thousand Dollars ($200,000.00) as
          of the last day of the second and third quarters of fiscal year 2001;
          and (iii) a profit of Three Hundred Thousand Dollars ($300,000.00) as
          of the last day of the fourth quarter of fiscal year 2001, with an
          allowance for one quarterly loss during such fiscal year of no greater
          than One Hundred Thousand Dollars ($100,000.00). Notwithstanding the
          foregoing, the Borrower shall maintain a profit for fiscal year 2001
          of Eight Hundred Thousand Dollars ($800,000.000).

                                      -10-
<PAGE>

          Borrower shall maintain, measured as of the last day of each quarter:
          (i) a profit of One Dollar ($1.00) as of the last day of each quarter
          of fiscal years 2002, and 2003"

     13.  The Loan Agreement shall be amended by deleting the following Section
          2.1.1 (a):

          "2.1.1(a)     Subject to and upon the terms and conditions of this
          Agreement, Bank agrees to make Advances to Borrower in an aggregate
          outstanding amount not to exceed the Committed Revolving Line of the
          Borrowing Base, whichever is less. Subject to the terms and conditions
          of this Agreement, amounts borrowed pursuant to this Section 2.1 may
          be repaid and reborrowed at any time during the term of this
          Agreement."

          and substituting therefor the following:

          "2.1.1(a)     Subject to and upon the terms and conditions of this
          Agreement, Bank agrees to make Advances to Borrower in an aggregate
          outstanding amount not to exceed (a) the lesser of the Committed
          Revolving Line of the Borrowing Base, minus(b) all Obligations under
          the Committed Equipment Line, minus (c)the amount of all other
          extensions of credit by the Bank (other than the EXIM Loan). Subject
          to the terms and conditions of this Agreement, amounts borrowed
          pursuant to this Section 2.1 may be repaid and reborrowed at any time
          during the term of this Agreement. Notwithstanding the foregoing, the
          Obligations (as defined hereunder) and obligations under the EXIM
          Loan, in the aggregate, shall not exceed the amount of Twelve Million
          Five Hundred Thousand Dollars ($12,500,000.00)."

     14.  The Loan Agreement shall be amended by deleting the following Section
          2.2:

          "2.2 Overadvances. If, at any time or for any reason, the amount of
               ------------
          Obligations owed by Borrower to Bank pursuant to Section 2.1.l plus,
          prior to the Debt Service Coverage Event, Section 2.1.2, is greater
          than the Borrowing Base, Borrower shall immediately pay to Bank, in
          cash, the amount of such excess (the "Overadvance")."

          and substituting therefor the following:

          "2.2 Overadvances. If, at any time or for any reason, the amount of
               ------------
          (a) Obligations (as defined hereunder) owed by Borrower to Bank (not
          including the EXIM Loan), is greater than (b) the lesser of the
          Committed Revolving Line or the Borrowing Base, Borrower shall
          immediately pay to Bank, in cash, the amount of such excess. In
          addition, if, at any time or for any reason, the Obligations (as
          defined hereunder) and the obligations under the EXIM Loan, in the
          aggregate, exceed the amount of Twelve Million Five Hundred Thousand
          Dollars ($12,500,000.00). Borrower shall immediately pay to Bank, in
          cash, the amount of such excess. Any excess calculated pursuant to
          this Section shall be referred to as the "Overadvance""

                                      -11-
<PAGE>

                    Borrower shall immediately pay to Bank, in cash, the amount
                    of such excess. Any excess calculated pursuant to this
                    Section shall be referred to as the "Overadvance"

4.   EXIM LOAN. The occurrence of an Event of Default under the EXIM Loan shall
     ---------
constitute an Event of Default under the Loan Agreement. The occurrence of an
Event of Default under the Loan Agreement shall constitute an Event of Default
under the EXIM Loan.

5.   LOAN FEES. The Borrower shall pay to the Bank the following:
     ---------

               (a)  Committed Revolving Line Facility Fee. A Committed Revolving
                    -------------------------------------
                    Line Facility Fee equal to Eighteen Thousand Seven Hundred
                    Fifty Dollars ($18,750,00), which fee shall be due on the
                    date hereof and shall be fully earned and nonrefundable.

               (b)  Committed Equipment Line Facility Fee. A Committed Equipment
                    -------------------------------------
                    Line Facility Fee equal to: (i) Ten Thousand Dollars
                    ($10,000.00), which fee shall be due on the date hereof, and
                    shall be fully earned and non-refundable.

6.   CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever
     ------------------
necessary to reflect the changes described above.

7.   RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and
     ------------------------------
reaffirms all terms and conditions of all security or other collateral granted
to the Lender, and confirms that the indebtedness secured thereby includes,
without limitation, the Indebtedness.

8.   NO DEFENSES OF BORROWER.  Borrower agrees that, as of this date, it has no
     -----------------------
defenses against the obligations to pay any amounts under the Indebtedness.

9.   CONTINUING VALIDITY.  Borrower understands and agrees that in modifying the
     -------------------
existing Indebtedness, Lender is relying upon Borrower's representations,
warranties, and agreements, as set forth in the Existing Loan Documents;
provided however that the Schedule to the Loan Agreement shall be amended and
restated as set forth on Exhibit C attached hereto. Except as expressly modified
pursuant to this Loan Modification Agreement, the terms of the Existing Loan
Documents remain unchanged and in full force and effect. Lender's agreement to
modifications to the existing Indebtedness pursuant to this Loan Modification
Agreement in no way shall obligate Lender to make any future modifications to
the Indebtedness. Nothing in this Loan Modification Agreement shall constitute a
satisfaction of the Indebtedness. It is the intention of Lender and Borrower to
retain as liable parties all makers and endorsers of Existing Loan Documents,
unless the party is expressly released by Lender in writing. No maker, endorser,
or guarantor will be released by virtue of this Loan Modification Agreement. The
terms of this Paragraph apply not only to this Loan Modification Agreement, but
also to all subsequent loan modification agreements.

10.  JURISDICTION/VENUE. Borrower accepts for itself and in connection with its
     ------------------
properties, unconditionally, the non-exclusive jurisdiction of any state or
federal court of competent jurisdiction in the Commonwealth of Massachusetts in
any action, suit, or proceeding of any kind against it which arises out of or by
reason of this Loan Modification Agreement; provided, however, that if for any
reason Lender cannot avail itself of the courts of the Commonwealth of
Massachusetts, then venue shall lie in Santa Clara County, California.

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

                                      -12-
<PAGE>

     This Loan Modification Agreement is executed as of the date first written
above.

BORROWER:                              LENDER:

SEACHANGE INTERNATIONAL, INC.          SILICON VALLEY BANK, doing business as
                                       SILICON VALLEY EAST

By: W L FIEDLER                        By:_________________________________
----------------------------

Name: W L FIEDLER                      Name:_______________________________
----------------------------

Title: Vice President                  Title:______________________________
----------------------------

                                       SILICON VALLEY BANK

                                       By:_________________________________

                                       Name:_______________________________

                                       Title:______________________________

                                      -13-
<PAGE>

                                  APPENDIX 1
                                  ----------
                         LIBOR SUPPLEMENT TO AGREEMENT

This LIBOR Supplement to Agreement (the "Supplement") is a supplement to the
Loan and Security Agreement (the "Loan Agreement") dated as of November 10,
1998, between Silicon Valley Bank ("Bank") and Seachange International, Inc.
("Borrower"), and forms a part of and is incorporated into the Loan Agreement.

     1.   Definitions.
          -----------

     "Business Day" means a day of the year (a) that is not a Saturday, Sunday
or other day on which banks in the State of California or the City of London are
authorized or required to close and (b) on which dealings are carried on in the
interbank market in which Bank customarily participates.

     "Interest Period" means for each LIBOR Rate Loan, a period of approximately
one, two or three months as the Borrower may elect, provided that the last day
                                                    --------
of an Interest Period for a LIBOR Rate Loan shall be determined in accordance
with the practices of the LIBOR interbank market as from time to time in effect,
provided, further, in all cases such period shall expire not later than the
--------  -------
applicable Maturity Date.

     "Interest Rate" shall mean as to: (a) Prime Rate Loans, a rate equal to the
Prime Rate; and (b) LIBOR Rate Loans, a rate of 2.0% per annum in excess of the
LIBOR Rate (based on the LIBOR Rate applicable for the Interest Period selected
by the Borrower).

     "LIBOR Base Rate" means, for any Interest Period for a LIBOR Rate Loan, the
rate of interest per annum determined by Bank to be the per annum rate of
interest as which deposits in United States Dollars are offered to Bank in the
London interbank market in which Bank customarily participates at 11:00 A.M.
(local time in such interbank market) two (2) Business Days before the first
day of such Interest Period for a period approximately equal to such Interest
Period and in an amount approximately equal to the amount of such Loan.

     "LIBOR Rate" shall mean, for any Interest Period for a LIBOR Rate Loan, a
rate per annum (rounded upwards, if necessary, to the nearest 1/16 of 1%) equal
to (i) the LIBOR Base Rate for such Interest Period divided by (ii) 1 minus the
Reserve Requirement for such Interest Period.

     "LIBOR Rate Loans" means any Loans made or a portion thereof on which
interest is payable based on the LIBOR Rate in accordance with the terms hereof.

     "Prime Rate" means the variable rate of interest per annum, most recently
announced by Bank as its "prime rate," whether or not such announced rate is the
lowest rate available from Bank. The interest rate applicable to the Prime Rate
Loans shall change on each date there is a change in the Prime Rate.

     "Prime Rate Loans" means any Loans made or a portion thereof on which
interest is payable based on the Prime Rate in accordance with the terms hereof.

     "Regulatory Change" means, with respect to Bank, any change on or after the
date of this Loan Agreement in United States federal, state or foreign laws or
regulations, including Regulation D, or the adoption or making on or after such
date of any interpretations, directives or requests applying to a class of
lenders including Bank of or under any United States federal or state, or any
foreign, laws or

                                     -14-
<PAGE>

regulations (whether or not having the force of law) by any court or
governmental or monetary authority charged with the interpretation or
administration thereof.

     "Reserve Requirement" means, for any Interest Period, the average maximum
rate at which reserves (including any marginal, supplemental or emergency
reserves) are required to be maintained during such Interest Period under
Regulation D against "Eurocurrency liabilities" (as such term is used in
Regulation D) by member banks of the Federal Reserve System. Without limiting
the effect of the foregoing, the Reserve Requirement shall reflect any other
reserves required to be maintained by Bank by reason of any Regulatory Change
against (I) any Category of liabilities which includes deposits by reference to
which the LIBOR Rate is to be determined as provided in the definition of "LIBOR
Base Rate" or (ii) any category of extensions of credit or other assets which
include Loans.

     2. Requests for Loans; Confirmation of Initial Loans. Each LIBOR Rate Loan
        -------------------------------------------------
shall be made upon the irrevocable written request of Borrower received by Bank
not later than 11:00 a.m. (Santa Clara, California time) on the Business Day
three (3) Business Days prior to the date such Loan is to be made. Each such
notice shall specify the date such Loan is to be made, which day shall be a
Business Day; the amount of such Loan, the Interest Period for such Loan, and
comply with such other requirements as Bank determines are reasonable or
desirable in connection therewith.

     Each written request for a LIBOR Rate Loan shall be in the form of a LIBOR
Rate Loan Borrowing Certificate as set forth on Exhibit A, which shall be duly
                                                ---------
executed by the Borrower.

     3. Conversion/Continuation of Loans.
        --------------------------------

     (a) Borrower may from time to time submit in writing a request that Prime
Rate Loans be converted to LIBOR Rate Loans or that any existing LIBOR Rate
Loans continue for an additional Interest Period. Such request shall specify the
amount of the Prime Rate Loans which will constitute LIBOR Rate Loans (subject
to the limits set forth below) and the Interest Period to be applicable to such
LIBOR Rate Loans. Each written request for a conversion to a LIBOR Rate Loan or
a continuation of a LIBOR Rate Loan shall be substantially in the form of a
LIBOR Rate Conversion/Continuation Certificate as set forth on Exhibit B, which
                                                               ---------
shall be duly executed by the Borrower. Subject to the terms and conditions
contained herein, three (3) Business Days after Bank's receipt of such a request
from Borrower, such Prime Rate Loans shall be converted to LIBOR Rate Loans or
such LIBOR Rate Loans shall continue, as the case may be provided that:

     (i)   no Event of Default or event which with notice or passage of time or
both would constitute an Event of Default exists;

     (ii)  no party hereto shall have sent any notice of termination of this
Supplement or of the Loan Agreement;

     (iii) Borrower shall have complied with such customary procedures as Bank
has established from time to time for Borrower's requests for LIBOR Rate Loans;

     (iv)  the amount of a LIBOR Rate Loan shall be $100,000 or such greater
amount which is an integral multiple of $50,000; and

     (v)   Bank shall have determined that the Interest Period or LIBOR Rate is
available to Bank which can be readily determined as of the date of the request
for such LIBOR Rate Loan.

                                      -15-
<PAGE>

     Any request by Borrower to convert Prime Rate Loans to LIBOR Rate Loans or
continue any existing LIBOR Rate Loans shall be irrevocable. Notwithstanding
anything to the contrary contained herein, Bank shall not be required to
purchase United States Dollar deposits in the London interbank market or other
applicable LIBOR Rate market to fund any LIBOR Rate Loans, but the provisions
hereof shall be deemed to apply as if Bank had purchased such deposits to fund
the LIBOR Rate Loans.

     (b)  Any LIBOR Rate Loans shall automatically convert to Prime Rate Loans
upon the last day of the applicable Interest Period, unless Bank has received
and approved a complete and proper request to continue such LIBOR Rate Loan
at least three (3) Business Days prior to such last day in accordance with the
terms hereof. Any LIBOR Rate Loans shall, at Bank's option, convert to Prime
Rate Loans in the event that (i) an Event of Default, or event which with the
notice or passage of time or both would constitute an Event of Default, shall
exist, (ii) this Supplement or the Loan Agreement shall terminate, or (iii) the
aggregate principal amount of the Prime Rate Loans which have previously been
converted to LIBOR Rate Loans, or the aggregate principal amount of existing
LIBOR Rate Loans continued, as the case may be, at the beginning of an Interest
Period shall at any time during such Interest Period exceeds the Revolving
Maturity Date. Borrower agrees to pay to Bank, upon demand by Bank (or Bank may,
at its option, charge Borrowers loan account) any amounts required to compensate
Bank for any loss (including loss of anticipated profits), cost or expense
incurred by such person, as a result of the conversion of LIBOR Rate Loans to
Prime Rate Loans pursuant to any of the foregoing.

     (c)  On all Loans, Interest shall be payable by Borrower to Bank monthly in
arrears not later than the first day of each calendar month at the applicable
Interest Rate.

     4.   Additional Requirements/Provisions Regarding LIBOR Rate Loan: Etc.
          ------------------------------------------------------------------

     (a)  If for any reason (including voluntary or mandatory prepayment or
acceleration), Bank receives all or part of the principal amount of a LIBOR Rate
Loan prior to the last day of the Interest Period for such Loan, Borrower shall
immediately notify Borrower's account officer at Bank and, on demand by Bank,
pay Bank the amount (if any) by which (i) the additional interest which would
have been payable on the amount so received had it not been received until the
last day of such Interest Period exceeds (ii) the interest which would have been
recoverable by Bank by placing the amount so received on deposit in the
certificate of deposit markets or the offshore currency interbank markets or
United States Treasury investment products, as the case may be, for a period
starting on the date on which it was so received and ending on the last day of
such Interest Period at the interest rate determined by Bank in its reasonable
discretion. Bank's determination as to such amount shall be conclusive absent
manifest error.

     (b)  Borrower shall pay to Bank, upon demand by Bank, from time to time
such amounts as Bank may determine to be necessary to compensate it for any
costs incurred by Bank that Bank determines are attributable to its making or
maintaining of any amount receivable by Bank hereunder in respect of any Loans
relating thereto (such increases in costs and reductions in amounts receivable
being herein called "Additional Costs"), in each case resulting from any
Regulatory Change which:

               (i)  changes the basis of taxation of any amounts payable to Bank
under this Supplement in respect of any Loans (other than changes which affect
taxes measured by or imposed on the overall net income of Bank by the
jurisdiction in which such Bank has its principal office); or

                                      -16-
<PAGE>

          (ii)  imposes or modifies any reserve, special deposit or similar
requirements relating to any extensions of credit or other assets of, or any
deposits with or other liabilities of Bank (including any Loans or any deposits
referred to in the definition of "LIBOR Base Rate"): or

         (iii)  imposes any other condition affecting this Supplement (or any of
such extensions of credit or liabilities).

Bank will notify Borrower of any event occurring after the date of the Loan
Agreement which will entitle Bank to compensation pursuant to this section as
promptly as practicable after it obtains knowledge thereof and determines to
request such compensation. Bank will furnish Borrower with a statement setting
forth the basis and amount of each request by Bank for compensation under this
Section 4. Determinations and allocations by Bank for purposes of this Section 4
of the effect of any Regulatory Change on its costs of maintaining its
obligations to make Loans or of making or maintaining Loans or on amounts
receivable by it in respect of Loans, and of the additional amounts required to
compensate Bank in respect of any Additional Costs, shall be conclusive absent
manifest error.

     (c)  Borrower shall pay to Bank, upon the request of Bank, such amount or
amounts as shall be sufficient (in the sole good faith opinion of such Bank) to
compensate it for any loss, costs or expense incurred by it as a result of any
failure by Borrower to borrow a Loan on the date for such borrowing specified in
the relevant notice of borrowing hereunder.

    (d)   If Bank shall determine that the adoption or implementation of any
applicable law, rule, regulation or treaty regarding capital adequacy, or any
change therein, or any change in the interpretation or administration thereof by
any governmental authority, central bank or comparable agency charged with the
Interpretation or administration thereof, or compliance by Bank (or its
applicable lending office) with any respect or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, has or would, have the effect of reducing the rate of
return on capital of Bank or any person or entity controlling Bank (a "Parent")
as a consequence of its obligations hereunder to a level below that which Bank
(or its Parent) could have achieved but for such adoption, change or compliance
(taking into consideration its policies with respect to capital adequacy) by an
amount deemed by Bank to be material, then from time to time, within 15 days
after demand by Bank, Borrower shall pay to Bank such additional amount or
amounts as will compensate Bank for such reduction. A statement of Bank claiming
compensation under this Section and setting forth the additional amount or
amounts to be paid to it hereunder shall be conclusive absent manifest error.

     (e)  If at any time Bank, in its sole and absolute discretion, determines
that: (i) the amount of the LIBOR Rate Loans for periods equal to the
corresponding Interest Periods are not available to Bank in the offshore
currency interbank markets, or (ii) the LIBOR Rate does not accurately reflect
the cost to Bank of lending the LIBOR Rate Loan, then Bank shall promptly give
notice thereof to Borrower, and upon the giving of such notice Bank's obligation
to make the LIBOR Rate Loans shall terminate, unless Bank and the Borrower agree
in writing to a different interest rate Loans shall terminate, unless Bank and
the Borrower agree in writing to a different interest rate applicable to LIBOR
Rate Loans. If it shall become unlawful for Bank to continue to fund or maintain
any Loans, or to perform its obligations hereunder, upon demand by Bank,
Borrower shall prepay the Loans in full with accrued interest thereon and all
other amounts payable by Borrower hereunder (including, without limitation, any
amount payable In connection with such prepayment pursuant to Section 4(a)).

                                      -17-
<PAGE>

                                                                       EXHIBIT A
                                                                       ---------
                     LIBOR RATE LOAN BORROWING CERTIFICATE

     The undersigned hereby certifies as follows:

     I, ____________________________, am the duly elected and acting ___________
of Seachange International, Inc. ("Borrower").

     This certificate is delivered pursuant to Section 2 of that certain LIBOR
Supplement to Agreement together with the Loan and Security Agreement by and
between Borrower and Silicon Valley Bank ("Bank") (the "Loan Agreement"). The
terms used in this Borrowing Certificate which are defined in the Loan Agreement
have the same meaning herein as ascribed to them therein.

     Borrower hereby requests on ____________________________, 200___ a LIBOR
Rate Loan (the "Loan") as follows:

     (a) The date on which the Loan is to be made is __________________, 200___.

     (b) The amount of the Loan is to be_______________________($_____________),
for an Interest Period of ______________ month(s).

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

     IN WITNESS WHEREOF, this Borrowing Base Certificate is executed by the
undersigned as of this __________________ day of __________________, 2000.

                                                       _________________________

                                                       By: _____________________

                                                       Title:___________________

For Internal Bank Use Only
--------------------------------------------------------------------------------
 LIBOR Pricing Date     LIBOR RATE     LIBOR Rate Variance     Maturity Date
--------------------------------------------------------------------------------
                                              _____%
--------------------------------------------------------------------------------

<PAGE>

                                                                       EXHIBIT B
                                                                       ---------

                LIBOR RATE CONVERSION/CONTINUATION CERTIFICATE

     The undersigned hereby certifies as follows:

     I, ____________________________, am the duly elected and acting ___________
of _ Seachange International, Inc. ("Borrower").

     This certificate is delivered pursuant to Section 2 of that certain LIBOR
Supplement to Agreement together with the Loan and Security Agreement by and
between Borrower and Silicon Valley Bank ("Bank") (the "Loan Agreement").  The
terms used in this Borrowing Certificate which are defined in the Loan Agreement
have the same meaning herein as ascribed to them therein.

     Borrower hereby requests on ____________________________, 200___ a LIBOR
Rate Loan (the "Loan") as follows:

     (a)  _____ (i)  A rate conversion of an existing Prime Rate Loan from a
                     Prime Rate Loan to a LIBOR Rate Loan; or

          _____ (ii) A continuation of an existing LIBOR Rate Loan as a LIBOR
     Rate Loan; [Check (i) or (ii) above]

     (b)  The date on which the Loan is to be made is _________________, 200___.

     (c)  The amount of the Loan is to be _____________________($_____________),
for an Interest Period of ______________ month(s).

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

     IN WITNESS WHEREOF, this LIBOR Rate Conversion/Continuation Certificate is
executed by the undersigned as of this __________________ day of ______________,
2000.

                                                       _________________________

                                                       By: _____________________

                                                       Title:___________________

For Internal Bank Use Only
--------------------------------------------------------------------------------
 LIBOR Pricing Date     LIBOR RATE     LIBOR Rate Variance     Maturity Date
--------------------------------------------------------------------------------
                                              _____%
--------------------------------------------------------------------------------

<PAGE>

                                                                       EXHIBIT C
                                                                       ---------
                              Silicon Valley Bank
                         Representations & Warranties

                                  EXHIBIT 5.3
                                  -----------

<TABLE>
<CAPTION>
Equipment Leases:
----------------
<S>                       <C>                                    <C>
Oce' Copier               Ikon Capital Corp.                     Leased from 10/01/96 through
                                                                 10/01/01

AT&T/Lucent Definity      AT&T Credit Corp.                      Leased from 08/31/97 - 08/31/02
Generic 3SI Comm.
System

Microspace                Transponder Lease Agreement From       Mr. Joseph L. Amor III
                          3/97 - 4/02                            Microspace Communications Group
                                                                 3100 Highwoods Blvd.
                                                                 Raleigh, NC 27604

Paramount Financial       Movie Systems & TV Sets From 7/98      One Jericho Plaza
Corporation               - 7/03                                 Jerico, New York 11753

Silicon Valley Bank       TV Sets                                Leased from 6/97 to 6/02

Property Leases:
---------------
Office Location           Property Address                       Landlord
City, State

Greenville, NH            15 and 47 Main Street, #1 Mill         Alden T. Greenwood
                          Greenville, NH 03048                   773 Greenville Road
                          (603) 878-5055                         Mason, NH 03048
                                                                 (603) 878-2485

Baltimore, MD             38 Bellchase Court                     Ira Goldfarb
                          Baltimore, MD 21208                    38 Bellchase Court
                          (410) 653-7175                         Baltimore, MD 21208
                                                                 (410) 653-7175

Burlingame, CA            500 Airport Blvd., Suite 345           The Horn Group
                          Burlingame, CA 94010                   Sabrina Horn
                          (415) 589-4499                         500 Airport Blvd., Suite 345
                                                                 Burlingame, CA 94010

St. Louis, MO             710 North Second Street                Arch Equities II, LLC
                          Suite 350S                             319 No. Fourth St.
                          St. Louis, MO 63102                    Suite 300
</TABLE>
<PAGE>

<TABLE>
<S>                       <C>                                    <C>
                          (314) 436-8989                         St. Louis, MO 63102
Fort Washington, PA       1075 Virginia Drive                    Bet Investments
                          Fort Washington, PA 19034              2660 Philmont Avenue, Suite 212
                                                                 Huntingdon Valley, PA  19006

Property Leases:
---------------
Office Location           Property Address                       Landlord
City, State
Englewood, CO             6050 S. Greenwood Blvd.                Axis Commercial Realty
                          Suite 150
                          Englewood, CO 80111
                          (303) 694-0900

Lawrenceville, GA         100 Hurricane Shoals Rd NE             316 BC, LLC
-----------------         D-1200                                 316 Business Center
                          Lawrenceville, GA 30043                Gwinett County, GA

Novato, CA                Digital Drive                          Harding and Lawson
----------                Novato, CA

Singapore                 10 Tannery Lane                        IPC Corporation
---------                 #03-02, Singapore 347773               Singapore

Sophia Antipolis, France  Centre International DE                Monsieur Alain ANDRE.
------------------------  Communication Avancee De Sophia        C.I.COM. Organisation, S.A.R.L.
                          Antipolis (C.I.C.A.)                   06560 Valbonne 2229
                          FRANCE                                 401 432 059 (France)

Maynard, MA               124 Acton Street                       Maynard Industrial Properties
-----------               Maynard, MA 01754                      Association
                                                                 124 Acton Street
                                                                 Maynard, MA 01754
</TABLE>
<PAGE>

                                  EXHIBIT 5.4
                                  -----------

The following accounts receivable are adequately reserved for as part of
SeaChange International's general account receivable reserve.  They are
specifically identified here for purposes of disclosure:

Cape Elegance, Singapore                 $ 110,000

HCI                                         74,320

Galavu Entertainment                        84,794

                                  EXHIBIT 5.5
                                  -----------

Merchantable Inventory:
----------------------

The inventory identified in the balance sheet of SeaChange International, Inc.,
is in all material respects, good and marketable quality and free from all
material defects.  The Company has, as part of general business practice,
customer returned materials which undergoes evaluation for before final
disposition.  The Company also maintains a level of logistical materials for
support of our installation base which generally is less than 13% of our total
inventory value.  This material is primarily used and is adequately reserved
for.

                                  EXHIBIT 5.8
                                  -----------

Litigation:
----------

The following actions or proceedings are pending with the Company, none of which
either individually or in the aggregate would have a material adverse effect on
the financial performance of the Company in the event the Company did not
prevail:

Linda Karagosian     Employee dispute         *$40,000

Beamhit              Vendor dispute           See paragraph below

nCube, Inc.          Patent Infringement      Injunctive relief sought by
                                              SeaChange against nCube

Putterman            Libel                    SeaChange seeking relief
                                              against Putterman on behalf of

* = less than<PAGE>

                                                                  EXHIBIT 10.2

                EXPORT-IMPORT BANK LOAN AND SECURITY AGREEMENT

     This EXPORT-IMPORT BANK LOAN AND SECURITY AGREEMENT (the "Exim Agreement")
is entered into as of July 25, 2000, by and between SILICON VALLEY BANK, a
California-chartered bank ("Bank"), with its principal place of business at
3003 Tasman Drive, Santa Clara, CA 95054 and with a loan production office
located at Wellesley Office Park, 40 William Street, Suite 350, Wellesley, MA
02481, doing business under the name "Silicon Valley East" ("Bank") and
SEACHANGE INTERNATIONAL, INC., a Delaware corporation with its chief executive
office located at 124 Acton Street, Maynard, Massachusetts 01754 (the
"Borrower").

                                   RECITALS

     A.   Borrower and Bank are parties to that certain Loan and Security
Agreement dated November 10, 1998 (as amended to date, the "Domestic
Agreement"), together with related documents executed in conjunction therewith.

     B.   Borrower and Bank desire in this Exim Agreement to set forth their
agreement with respect to a working capital facility to be guaranteed by the
Export-Import Bank of the United States (the "Exim Bank").

                                   AGREEMENT

     The Parties agree as follows:

     1.   DEFINITIONS AND CONSTRUCTION
          ----------------------------

     1.1  Definitions. Except as otherwise defined, terms that are capitalized
          -----------
in this Exim Agreement shall have the meanings assigned in the Domestic Loan
Documents. As used in this Exim Agreement, the following terms shall have the
following definitions:

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

          "Advances" means any loans or other extensions of credit hereunder.

          "Borrower Agreement" means the Export-Import Bank of the United States
     Working Capital Guarantee Program Borrower Agreement between Borrower and
     Bank.

          "Borrowing Base" means an amount equal to (i) ninety percent (90%) of
     Exim Eligible Foreign Accounts which Exim Eligible Foreign Accounts are
     billed and collected by the Borrower in the United States, plus (ii) the
                                                                ----
     lesser of (A) Seven Hundred Fifty Thousand Dollars ($750,000.00) or (B)
     fifty (50%) percent of Export-Related Inventory Value of Eligible Export-
     Related Inventory which is determined acceptable by the Bank.

          "Collateral" is the property described on Exhibit 4.
                                                    ---------

          "Domestic Agreement" has the meaning set forth in recital paragraph A.

          "Domestic Loan Documents" means the Domestic Agreement and all
     instruments, documents, and agreements executed in connection with the
     Domestic Agreement.

<PAGE>

     "Eligible Export-Related Inventory" shall have the meaning set forth for
such term in the Borrower Agreement.

     "Exim Bank" means Export-Import Bank of the United States.

     "Exim Bank Expenses" means all: reasonable costs or expenses (including
reasonable attorneys' fees and expenses) incurred in connection with the
preparation, negotiation, and administration of the Exim Loan Documents,
including any costs incurred in relation to opposing or seeking to obtain relief
from any stay or restructuring order prohibiting Bank from exercising its rights
as a secured creditor, foreclosing upon or disposing of Collateral, or such
related matters; and Bank's reasonable attorneys' fees and expenses incurred in
enforcing or defending the Exim Loan Documents, whether or not suit is brought,
unless a final court of competent jurisdiction finds the Bank acted with gross
negligence or willful misconduct.

     "Exim Committed Line" means Three Million Dollars ($3,000,000.00).

     "Exim Eligible Foreign Accounts" means those Accounts payable in United
States Dollars that arise in the ordinary course of Borrower's business and (i)
with respect to which the account debtor is not a resident of the United States;
(ii) that have been validly assigned or pledged to Bank in a manner satisfactory
to the Bank giving the Bank a first priority perfected security interest, or its
equivalent, in such Accounts, (iii) comply with all of Borrower's
representations and warranties to Bank, and (iv) that either (A) the Bank
approves on a case by case basis or (B) are supported by letter(s) of credit
acceptable to Bank; standards of eligibility may be fixed revised from time to
time by Bank in Bank's reasonable judgment and upon notification thereof to the
Borrower in accordance with the provisions hereof. Exim Eligible Foreign
Accounts shall not include the following:

          (a)  Accounts with a term in excess of one hundred twenty (120) days;

          (b)  Accounts that the account debtor has failed to pay within sixty
     (60) calendar days of the original due date of the invoice unless such
     accounts are insured through Exim Bank export credit insurance for
     comprehensive commercial and political risk, or through Exim Bank approved
     private insurers for comparable coverage, in which case ninety (90)
     calendar days shall apply;

          (c)  Account with respect to an account debtor, twenty five percent
     (25%) or more of whose Accounts the account debtor has failed to pay within
     one hundred twenty (120) days of the original date of invoice;

          (d)  Accounts evidenced by a letter of credit until the date of
     shipment of the items covered by the subject letter of credit;

          (e)  Accounts with respect to which an invoice has not been sent;

          (f)  Accounts with respect to which the account debtor is an
     Affiliate, officer or director of Borrower;

          (g)  Accounts with respect to which the account debtor is located in a
     country in which Exim Bank is legally prohibited from doing business as
     designated in the Country Limitation Schedule (as such term is defined in
     the Borrower Agreement);

          (h)  Accounts with respect to which the account debtor is located in a
     country in which Exim Bank coverage is not available for commercial
     reasons;

                                      -2-
<PAGE>

          (i)  Accounts with respect to which Borrower is liable to the account
     debtor for goods sold or services rendered by the account debtor to
     Borrower, but only to the extent of Borrower's liability to such account
     debtor.

          (j)  Accounts with respect to which the account debtor has disputed
     liability or makes any claim with respect thereto (but only to the extent
     of the amount subject to such dispute or claim), or is subject to any
     Insolvency Proceeding, or becomes insolvent, or goes out of business;

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

          (l)  Accounts generated by the sale of products purchased for military
     purposes or that are due and payable from a military Buyer;

          (m)  Accounts, if any, generated by sales of Inventory which
     constitutes defense articles or defense services;

          (n)  Accounts payable in currency other than Dollars, except as may be
     approved in writing by the Bank and the Exim Bank;

          (o)  Accounts which are due and owing and the collection of which must
     be made outside the United States;

          (p)  Accounts the collection of which Bank or Exim Bank determines in
     its reasonable judgment to be doubtful; and

          (q)  Any account which is not an "Eligible Export-Related Accounts
     Receivable", as such term is defined in the Borrower Agreement.

     "Exim Guarantee" means that certain Master Guarantee Agreement or other
agreement, as amended from time to time, the terms of which are incorporated by
reference into this Exim Agreement, pursuant to which Exim Bank guarantees
Borrower's obligations under this Exim Agreement.

     "Exim Loan Documents" means, collectively, this Exim Agreement, the
Domestic Loan Documents, any note or notes executed by Borrower, and any other
agreement entered into between Borrower and Bank in connection with this Exim
Agreement, all as amended or extended from time to time.

     "Exim Maturity Date" means the earliest of (i) the Revolving Maturity Date
under the Domestic Loan Documents, or (ii) March 31, 2001.

     "Export-Related Inventory Value" shall have the meaning set forth in the
Borrower Agreement.

     "Inventory" shall mean "Export-Related Inventory" as such term is defined
in the Borrower Agreement.

     "Note" is defined in Section 2.1.1.

     "Obligations" shall mean all debts, principal, interest, Exim Bank
Expenses arising under the Exim Loan Documents and other amounts Borrower owes
Bank now or later, and including interest

                                      -3-
<PAGE>

     accruing after Insolvency Proceedings begin and debts, liabilities, or
     obligations of Borrower assigned to Bank.

           "Payment Date" means the first (1/st/) calendar day of each month
     commencing with the first such date after the date of this Exim Agreement
     and ending on the Exim Maturity Date.

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

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

     2.1.1 Revolving Advances. Subject to the terms and conditions of this Exim
           ------------------
Agreement, Bank agrees to make Advances to Borrower in an amount not to exceed
(i) the Exim Committed Line or the Borrowing Base, whichever is less, minus (ii)
the aggregate outstanding Advances hereunder, as determined by the Borrowing
Base Certificate to be delivered to the Bank. Notwithstanding the foregoing, the
aggregate of (i) the Obligations hereunder, and (ii) all Obligations under the
Domestic Agreement, and all other indebtedness owed by Borrower to Bank, shall
not exceed the amount of Twelve Million Five Hundred Thousand Dollars
($12,500,000.00).

     To evidence the Advances, Borrower shall execute and deliver to Bank on the
date hereof a promissory note (the "Note") in substantially the form attached
hereto as Exhibit B.
          ---------

     Whenever Borrower desires an Advance, Borrower will notify Bank by
facsimile transmission or telephone no later than 3:00 pm. Eastern time, on the
Business Day that the Advance is to be made. Each such notification shall be
promptly confirmed by a Payment/Advance Form in substantially the form of
Exhibit C hereto together with any additional documentation required under the
---------
Borrower Agreement, including without limitation, as set forth in Section 2.03
of the Borrower Agreement. In addition to the procedure set forth in the
preceding sentence, Bank is authorized to make Advances under this Exim
Agreement, based upon instructions received from a Responsible Officer or
without instructions if in Bank's discretion such Advances are necessary to meet
Obligations which have become due and remain unpaid. Bank shall be entitled to
rely on any telephonic notice given by a person who Bank reasonably believes to
be a Responsible Officer or a designee (as designated in writing by a
Responsible Officer) thereof, and Borrower shall indemnify and hold Bank
harmless for any damages or loss suffered by Bank as a result of such reliance.
Bank will credit the amount of Advances made under this Section 2.1.1 to
Borrower's deposit account. Amounts borrowed pursuant to this Section 2.1.1 may
be repaid at any time and re-borrowed at any time during the term of this Exim
Agreement so long as no Event of Default has occurred and is continuing.

     2.2   Overadvances. If, at any time or for any reason, the following occurs
           ------------
(an "Overadvance"): (i) the amount of Obligations pursuant to this Exim
Agreement owed by Borrower to Bank pursuant to Section 2.1 of this Exim
Agreement is greater than: (a) the lesser of the Borrowing Base or the Exim
Committed Line, minus (b) all outstanding Advances, or (ii) the Obligations
                -----                               --
hereunder, under the Domestic Agreement and any other indebtedness owed to the
Bank shall, in the aggregate, exceed the amount of Twelve Million Five Hundred
Thousand Dollars ($12,500,000.00), Borrower shall immediately pay to Bank, in
cash, the amount of such excess. In addition, if at any time or for any reason,
the aggregate amount of Advances made as a result of Eligible Export-Related
Inventory (as determined by the Borrowing Base Certificate) exceeds the maximum
allowable under Section 2.07(c) of the Borrower Agreement, the Borrower shall
within five (5) calendar days either (i) furnish additional collateral
satisfactory to the Bank which shall not consist of inventory (as such term is
defined in the UCC), or (ii) pay to Bank, in cash, the amount of such excess

     2.3   Interest Rates, Payments, and Calculations.
           ------------------------------------------

                                      -4-
<PAGE>

          (a)  Interest Rate. Except as set forth in Section 2.3(b), or as
               -------------
specified to the contrary in any Loan Document, any Advances under this Exim
Agreement shall bear interest, on the average daily balance, at a rate equal to
the Prime Rate per annum.

          (b)  Default Rate. All Obligations shall bear interest, from and after
               ------------
the occurrence of an Event of Default, at a rate equal to the lesser of (i) five
(5%) percentage points above the rate that applied immediately prior to the
occurrence of the Event of Default, and (ii) the maximum interest rate allowed
by applicable law.

          (c)  Payments. Interest hereunder shall be due and payable on each
               --------
Payment Date. Bank shall, at its option, charge such interest, all Exim Bank
Expenses, and all Periodic Payments against Borrower's deposit account or
against the Exim Committed Line, in which case those amounts shall thereafter
accrue interest at the rate then applicable hereunder. Unless sooner demanded,
all Advances made hereunder shall be due and payable in full on the Exim
Maturity Date.

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

     2.4  Crediting Payments. The receipt by Bank of any wire transfer of funds,
          ------------------
check, or other item of payment shall be immediately applied to conditionally
reduce Obligations, but shall not be considered a payment on account unless such
wire transfer is of immediately available federal funds and is made to the
appropriate deposit account of Bank or unless and until such check or other item
of payment is honored when presented for payment. Notwithstanding anything to
the contrary contained herein, any payment (other than a wire transfer of
immediately available funds) received by Bank after 12:00 p.m. (noon) Eastern
time shall be deemed to have been received by Bank as of the opening of business
on the immediately following Business Day.

     2.5  Fees. Borrower shall pay to Bank the following fees:
          ----

          (a)  Financial Examination and Appraisal Fees. Bank's customary fees
               ----------------------------------------
     and out-of-pocket expenses for Bank's audits of Borrower's Accounts and for
     each appraisal of the Collateral and financial analysis and examination of
     Borrower performed from time to time by Bank or its agents;

          (b)  Exim Fee. A facility fee equal to Thirty Thousand Dollars
               --------
     ($30,000.00), which fee shall be due and fully earned upon the Closing
     Date; and

          (c)  Exim Bank Expenses. On the Closing Date, Exim Bank Expenses
               ------------------
     incurred through the Closing Date and, after the Closing Date, all Exim
     Bank Expenses as they become due, if any.

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

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

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

                                      -5-
<PAGE>

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

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

     2.7  Term. This Exim Agreement shall become effective once duly executed
          ----
and authorized by Borrower and Bank and shall continue in full force and effect
for a term ending on the Exim Maturity Date, on which date all Obligations shall
become immediately due and payable. Notwithstanding the foregoing, Bank shall
have the right to terminate this Exim Agreement immediately and without notice
upon the occurrence of an Event of Default. Notwithstanding any termination of
this Exim Agreement, all of Bank's security interest in all of the Collateral
and all of the terms and provisions of this Exim Agreement shall continue in
full force and effect until all Obligations have been paid and performed in
full, and no termination shall impair any right or remedy of Bank, nor shall any
such termination relieve Borrower of any Obligation to Bank until all of the
Obligations have been paid and performed in full.

     2.8  Use of Proceeds. Borrower will use the proceeds of Advances only for
          ---------------
the purposes specified in the Borrower Agreement. Borrower shall not use the
proceeds of the Advances for any purpose prohibited by the Borrower Agreement.

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

     3.1  Conditions Precedent to all Advances. The obligation of Bank to make
          ------------------------------------
each Advance, including the initial Advance, is subject to the following
conditions:

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

          (b)  timely receipt by Bank of a Borrowing Base Certificate as defined
     in the Borrower Agreement;

          (c)  the Exim Guarantee shall be in full force and effect;

          (d)  receipt by the Bank of a valid purchase order and such other
     documentation as the Bank may require with respect to any Advance based
     upon Inventory;

          (e)  if required by the Bank in its reasonable discretion, a
     satisfactory appraisal of Inventory with respect to any Advances to be made
     based in whole or in part upon the value of the Inventory; and

          (f)  except as otherwise disclosed to the Bank, the representations
     and warranties contained in Section 5 hereof shall be true and accurate in
     all material respects on and as of the date of such Payment/Advance Form
     and on the effective date of each Advance as though made at and as of each
     such date (except to the extent they relate specifically to an earlier
     date, in which case such representations and warranties shall continue to
     have been true and accurate as of such date), and no potential Event of
     Default or Event of Default shall have occurred and be continuing, or would
     result from such Advance.

     The making of each Advance shall be deemed to be a representation and
warranty by Borrower on the date of such Advance as to the accuracy of the
facts referred to in this Section 3.1.

                                      -6-
<PAGE>

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

     4.1  Grant of Security Interest. Borrower grants and pledges to Bank a
          --------------------------
continuing security interest in all presently existing and hereafter acquired
or arising Collateral in order to secure prompt payment of any and all
Obligations (which Obligations shall include, without limitation, all
obligations of the Borrower to the Bank under the Domestic Loan Documents) and
in order to secure prompt performance by Borrower of each of its covenants and
duties under the Exim Loan Documents and Domestic Loan Documents. Except as set
forth in the Schedule, such security interest constitutes a valid, first
priority security interest in the presently existing Collateral, and will
constitute a valid, first priority security interest in Collateral acquired
after the date hereof. Borrower acknowledges that Bank may place a "hold" on any
Deposit Account pledged as Collateral to secure the Obligations. Notwithstanding
termination of this Agreement Banks Lien on the Collateral shall remain in
effect for so long as any Obligations are outstanding. Upon termination of this
Agreement and satisfaction in full of the Obligations, Bank shall execute all
documents and take all actions reasonably requested by Borrower in evidence
thereof. Notwithstanding the foregoing, it is expressly acknowledged and agreed
that the security interest created in this Exim Agreement in all of the
Collateral (with the exception of both Exim Eligible Foreign Accounts and
Eligible Export-Related Inventory but only to the extent any Advances are
actually made by the Bank to the Borrower based upon such Exim Eligible Foreign
Accounts and Eligible Export-Related Inventory), is subject to and subordinate
to the security interest granted to the Bank in the Domestic Agreement and the
Permitted Liens (as defined in the Domestic Agreement or the Borrower Agreement)
with respect to the Collateral.

    4.2   Delivery of Additional Documentation Required. Borrower shall from
          ---------------------------------------------
time to time execute and deliver to Bank, at the request of Bank, all financing
statements and other documents that Bank may reasonably request, in form
satisfactory to Bank, to perfect and continue perfected Bank's security
interests in the Collateral and in order to fully consummate all of the
transactions contemplated under the Exim Loan Documents.

     4.3  Power of Attorney. Effective only upon the occurrence and during the
          ----------------
continuance of an Event of Default Borrower hereby irrevocably appoints Bank
(and any of Bank's designated officers or employees) as Borrower's true and
lawful attorney, with power to: (a) send requests for verification of Accounts;
(b) endorse Borrower's name on any checks or other forms of payment or security
that may come into Bank's possession; (c) sign the name of Borrower on any of
the documents described in Section 4.2 (regardless of whether an Event of
Default has occurred); (d) sign Borrower's name on any invoice or bill of lading
relating to any Account, drafts against account debtors, schedules and
assignments of Accounts, verifications of Accounts, and notices to account
debtors; (e) make, settle, and adjust all claims under and decisions with
respect to Borrower's policies of insurance; and (f) settle and adjust disputes
and claims respecting the accounts directly with account debtors, for amounts
and upon terms which Bank determines to be reasonable. The appointment of Bank
as Borrower's attorney-in-fact, and each of Bank's rights and powers, being
coupled with an interest, is irrevocable until all of the Obligations have been
fully repaid and Bank's obligation to provide Advances hereunder is terminated.

     4.4  Right to Inspect. Each of Bank and Exim Bank (through any of their
          ----------------
respective officers, employees, or agents) shall have the right, upon reasonable
prior notice, from time to time during Borrower's usual business hours, without
causing any disruptions of Borrower's operations (prior to an Event of Default)
to inspect Borrower's Books, facilities and activities, and to check, test, and
appraise the Collateral in order to verify Borrower's financial condition or the
amount, condition of, or any other matter relating to, the Collateral. Bank
shall conduct annual accounts receivable audits, the results of which audits
shall be satisfactory to Bank. Borrower will cause its officers and employees to
give their full cooperation and assistance in connection therewith.

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

     Borrower represents, warrants and covenants as follows:

     5.1  Domestic Loan Documents. The representations and warranties contained
          -----------------------
 in the Domestic Loan Documents, which are incorporated by reference into this
 Exim Agreement, are true and correct as of the date hereof, except as set
 forth on Exhibit D attached hereto.
          ---------

                                      -7-
<PAGE>

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

     Borrower covenants and agrees that, until payment in full of the
Obligations, each Borrower shall do all of the following:

     6.1  Domestic Loan Documents.  Borrower shall comply in all respects with
          -----------------------
the terms and provisions of the Domestic Loan Documents, which terms and
provisions are incorporated into this Exim Agreement and which shall include,
without limitation, compliance with the financial reporting requirements and the
financial covenants set forth in Article 6 of the Domestic Agreement. Ln
addition, the Borrower shall deliver to the Bank within twenty (20) days of the
end of each month (i) a Borrowing Base Certificate, (ii) a schedule of Inventory
for the preceding month, and (ii) an aged listing of accounts receivable, which
shall include all Accounts whether domestic or foreign.

     6.2  Terms of Sale.  Borrower shall cause all sales of products upon which
          -------------
Advances are based to be on open account to creditworthy buyers that have been
preapproved in writing by Bank and Exim Bank.

     6.3  Borrower Agreement.  Borrower shall comply with all of the terms of
          ------------------
the Borrower Agreement, including without limitation, the delivery of any and
all notices required pursuant to Sections 2.11 and/or 2.18 of the Borrower
Agreement. In the event of any conflict or inconsistency between any provision
contained in the Borrower Agreement with any provision contained in this Exim
Agreement, the more strict provision with respect to the Borrower, as determined
by the Bank shall control.

     6.4  Notice in Event of Filing of Action for Debtor's Relief.  Borrower
          -------------------------------------------------------
shall notify Bank in writing within five (5) days of the occurrence of any of
the following: (1) Borrower begins or consents in any manner to any proceeding
or arrangement for its liquidation in whole or in part or to any other
proceeding or arrangement whereby any of its assets are subject generally to the
payment of its liabilities or whereby any receiver, trustee, liquidator or the
like is appointed for it or any substantial part of its assets (including
without limitation the filing by Borrower of a petition for appointment as
debtor-in-possession under Title 11 of the U.S. Code); (2) Borrower fails to
obtain the dismissal or stay on appeal within thirty (30) calendar days of the
commencement of any proceeding arrangement referred to in (1) above; (3)
Borrower begins any other procedure for the relief of financially distressed or
insolvent debtors, or such procedure has been commenced against it, whether
voluntarily or involuntarily, and such procedure has not been effectively
terminated, dismissed or stayed within thirty (30) calendar days after the
commencement thereof, or (4) Borrower begins any procedure for its dissolution,
or a procedure therefor has been commenced against it.

     6.5  Payment in Dollars.  Borrower shall require payment in United States
          ------------------
Dollars for the products, unless the Exim Bank otherwise agrees in writing
hereafter.

     6.6  Inventory Audits.  Bank shall have the right to conduct audits of the
          ----------------
Borrower's Inventory at Borrower's expense.

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

     6.8  Further Assurances.  At any time and from time to time Borrower shall
          ------------------
(i) execute and deliver such further instruments, (ii) take such further action
as may reasonably be requested by Bank, and (iii) deliver such additional
information, reports, contracts, invoices and other data concerning the
Collateral as may reasonably be requested by Bank, all of the foregoing in
furtherance of the purposes of this Exim Agreement.

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

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

                                      -8-
<PAGE>

     7.1  Domestic Loan Documents.  Violate or otherwise fail to comply with any
          -----------------------
provisions of the Domestic Loan Documents, which provisions are incorporated
into this Exim Agreement.

     7.2  Loans to Shareholders or Affiliates.  Without Exim Bank's prior
          -----------------------------------
written consent, make any loans to any shareholder or entity affiliated with
Borrower. As used in this Section 7.2, the term "loan" does not include salary,
reasonable rent paid to an affiliated entity owned by the shareholders, or to
other expenses incurred in the ordinary course of Borrower's business.

     7.3  Borrower Agreement. Violate or otherwise fail to comply with any
          ------------------
provision of the Borrower Agreement, including without limitation the negative
covenants set forth in Section 2.15.

     7.4  Exim Guarantee.  Take any action, or permit any action to be taken,
          --------------
that causes or, with the passage of time, could reasonably be expected to cause,
the Exim Guarantee to cease to be in full force and effect.

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

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

     8.1  Payment Default.  If Borrower fails to pay, when due, any of the
          ---------------
Obligations.

     8.2  Covenant Default; Cross Default.  If Borrower fails or neglects to
          -------------------------------
perform, keep, or observe any material term, provision, condition, covenant, or
agreement contained in this Exim Agreement, in any of the Domestic Loan
Documents, the Borrower Agreement, or the Exim Loan Documents, or an Event of
Default occurs under any of the Domestic Loan Documents or the Borrower
Agreement and as to any default under such other term, provision, condition,
covenant or agreement that can be cured, has failed to cure such default within
twenty (20) days after the occurrence thereof; provided, however, that if the
default cannot by its nature be cured within the twenty (20) day period or
cannot after diligent attempts by Borrower be cured within such twenty (20) day
period, and such default is likely to be cured within a reasonable time, then
Borrower shall have an additional reasonable period (which shall not in any case
exceed thirty (30) days) to attempt to cure such default, and within such
reasonable time period the failure to have cured such default shall not be
deemed an Event of Default (provided that no Advances will be required to be
made during such cure period); or

     8.3  Exim Guarantee. If the Exim Guarantee ceases for any reason to be in
          --------------
full force and effect, or if the Exim Bank declares the Exim Guarantee void or
revokes or purports to revoke any obligations under the Exim Guarantee.

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

     9.1  Rights and Remedies. Upon the occurrence and during the continuance of
          -------------------
an Event of Default, Bank may, at its election, without notice of its election
and without demand, do any one or more of the following, in accordance with
applicable law, all of which are authorized by the Borrower:

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

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

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

          (d)  Notify customers of Borrower or other third parties to pay
     amounts owing to Borrower directly to the Bank;

                                      -9-
<PAGE>

          (e)  Without notice to or demand upon Borrower, make such payments and
     do such acts as Bank considers necessary or reasonable to protect its
     security interest in the Collateral. Borrower agrees to assemble the
     Collateral if Bank so requires, and to make the Collateral available to
     Bank as Bank may designate. Borrower authorizes Bank to enter the premises
     where the Collateral is located, to take and maintain possession of the
     Collateral, or any part of it, and to pay, purchase, contest, or compromise
     any encumbrance, charge, or lien which in Bank's determination appears to
     be prior or superior to its security interest and to pay all expenses
     incurred in connection therewith. With respect to any of Borrower's
     premises, Borrower hereby grants Bank a license to enter such premises and
     to occupy the same, without charge, in order to exercise any of Bank's
     rights or remedies provided herein, at law, in equity, or otherwise;

          (f)  With notice to the Borrower, set off and apply to the Obligations
     any and all (i) balances and deposits of Borrower held by Bank, or (ii)
     indebtedness at any time owing to or for the credit or the account of
     Borrower held by Bank;

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

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

          (i)  Bank may credit bid and purchase at any public sale, or at any
     private sale permitted by law.

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

     9.2  Exim Direction. Upon the occurrence of an Event of Default, Exim Bank
          --------------
shall have a right to: (i) direct Bank to exercise the remedies specified in
Section 9.1 and (ii) request that Bank accelerate the maturity of any other
loans to Borrower as to which Bank has a right to accelerate.

     9.3  Exim Notification. Bank shall have the right to immediately notify
          -----------------
Exim Bank in writing if it has knowledge of the occurrence of any of the
following events: (1) any failure to pay any amount due under this Exim
Agreement or the Note; (2) the Borrowing Base is less than the sum of
outstanding Advances hereunder; (3) any failure to pay when due any amount
payable to Bank by the Borrower under any loan(s) extended by Bank to Borrower;
(4) the filing of an action for debtor's relief by, against, or on behalf of
Borrower; or (5) any threatened or pending material litigation against Borrower,
or any material dispute involving Borrower.

     In the event that it sends such a notification to Exim Bank, Bank shall
have the right to thereafter send Exim Bank a written report on the status of
the events covered by said notification on each Business Day which occurs every
thirty (30) calendar days after the date of said notification, until such time
as Bank files a claim with Exim Bank or said default or other events have been
cured. Bank shall not have any obligation to make any Advances following said
notification to Exim Bank, unless Exim Bank gives its written approval thereto.
If directed to do so by Exim Bank, Bank shall have a right promptly to exercise
any rights it may have against borrower to demand the immediate repayment of all
amounts outstanding under the Exim Loan Documents.

                                      -10-
<PAGE>

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

     9.5  Power of Attorney. Effective only upon the occurrence and during the
          -----------------
continuance of an Event of Default, Borrower hereby irrevocably appoints Bank
(and any of Bank's designated officers, or employees) as Borrower's true and
lawful attorney to: (a) send requests for verification of Accounts or notify
account debtors of Bank's security interest in the Accounts; (b) endorse
Borrower's name on any checks or other forms of payment or security that may
come into Bank's possession; (c) sign Borrower's name on any invoice or bill of
lading relating to any Account, drafts against account debtors, schedules and
assignments of Accounts, verifications of Accounts, and notices to account
debtors; (d) make, settle, and adjust all claims under and decisions with
respect to Borrower's policies of insurance; and (e) settle and adjust disputes
and claims respecting the accounts directly with account debtors, for amounts
and upon terms which Bank determines to be reasonable; and (f) to file, in its
sole discretion, one or more financing or continuation statements and amendments
thereto, relative to any of the Collateral without the signature of Borrower
where permitted by law provided Bank may exercise such power of attorney to sign
the name of Borrower on any of the documents described in Section 4.2 regardless
of whether an Event of Default has occurred. The appointment of Bank as
Borrower's attorney in fact, and each and every one of Bank's rights and powers,
being coupled with an interest, is irrevocable until all of the Obligations have
been fully repaid and performed and Bank's obligation to provide advances
hereunder is terminated.

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

     9.7  Bank Expenses. If Borrower fails to pay any amounts or furnish any
          -------------
required proof of payment due to third persons or entities, as required under
the terms of this Agreement, then Bank may do any or all of the following: (a)
make payment of the same or any part thereof; (b) set up such reserves under the
Committed Revolving Line as Bank deems necessary to protect Bank from the
exposure created by such failure; or (c) obtain and maintain insurance policies
of the type discussed in Section 6.5 of the Domestic Agreement, and take any
action with respect to such policies as Bank deems prudent. Any amounts so paid
or deposited by Bank shall constitute Bank Expenses, shall be immediately due
and payable and shall bear interest at the then applicable rate hereinabove
provided, and shall be secured by the Collateral. Any payments made by Bank
shall not constitute an agreement by Bank to make similar payments in the future
or a waiver by Bank of any Event of Default under this Agreement.

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

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

     10.  CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER
          ------------------------------------------

     The laws of the Commonwealth of Massachusetts shall apply to this
Agreement. BORROWER ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERITIES,
UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT
OF COMPETENT JURISDICTION IN

                                      -11-
<PAGE>

THE COMMONWEALTH OF MASSACHUSETTS IN ANY ACTION, SUIT, OR PROCEEDING OF ANY
KIND, AGAINST IT WHICH ARISES OUT OF OR BY REASON OF THIS AGREEMENT; PROVIDED,
HOWEVER, THAT IF FOR ANY REASON BANK CANNOT AVAIL ITSELF OF THE COURTS OF THE
COMMONWEALTH OF MASSACHUSETTS, BORROWER ACCEPTS JURISDICTION OF THE COURTS AND
VENUE IN SANTA CLARA COUNTY, 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
EXIM LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR
STATUTORY CLAIMS. EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER
CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH
PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

     11.  WAIVERS: INDEMNIFICATION
          ------------------------

     11.1 Indemnification. Borrower shall defend, indemnify and hold harmless
          ---------------
Bank and its officers, employees, and agents against: (a) all obligations,
demands, claims, and liabilities claimed or asserted by any other party in
connection with the transactions contemplated by this Exim Agreement, and (b)
all losses or Exim Bank. Expenses in any way suffered, incurred, or paid by Bank
as a result of or in any way arising out of, following, or consequential to
transactions between Bank and Borrower whether under this Exim Agreement, or
otherwise (including without limitation reasonable attorneys fees and expenses),
except for losses caused by Bank's gross negligence or willful misconduct.

     12.  NOTICES
          -------

     Unless otherwise provided in this Exim Agreement, all notices or demands by
any party relating to this Exim Agreement at any other agreement entered into in
connection herewith shall be in writing and (except for financial statements and
other informational documents which may be sent by first-class mail, postage
prepaid) shall be personally delivered or sent by a recognized overnight
delivery service, by certified mail, postage prepaid, return receipt requested,
or by telefacsimile to Borrower or to Bank, as the case may be, at the address
set forth in the Domestic Loan Documents. The parties hereto may change the
address at which they are to receive notices hereunder, by notice in writing in
the foregoing manner given to the other.

     13.  GENERAL PROVISIONS
          ------------------

     13.1 Succesors and Assigns. This Exim Agreement shall bind and inure to the
          ---------------------
benefit of the respective successors and permitted assigns of each of the
parties; provided, however, that neither this Exim Agreement nor any rights
hereunder may be assigned by Borrower without Bank's prior written consent,
which consent may be granted or withheld in Bank's sole discretion. Bank shall
have the right without the consent of or notice to Borrower to sell, transfer,
negotiate, or grant participations in all or any part of, or any interest in
Bank's obligations, rights and benefits hereuder.

     13.2 Time of Essence. Time is of the essence for the performance of all
          ---------------
obligations set forth in this Exim Agreement.

     13.3 Severability of Provisions. Each provision of this Exim Agreement
          --------------------------
shall be severable from every other provision of this Exim Agreement for the
purpose of determining the legal enforceability of any specific provision.

     13.4 Amendments in Writing. This Exim Agreement cannot be changed or
          ---------------------
terminated orally. Without the prior written consent of Exim Bank, no material
amendment of or deviation from the terms of this Exim Agreement or the Note
shall be made that would adversely affect the interests of Exim Bank under the
Exim Guarantee, including without limitation the rescheduling of any payment
terms provided for in this Exim

                                      -12-
<PAGE>

Agreement. All prior agreements, understandings, representations, warranties,
and negotiations between the parties hereto with respect to the subject matter
of this Exim Agreement, if any, are merged into this Exim Agreement.

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

     13.6 Survival. All covenants, representations and warranties made in this
          --------
Exim Agreement shall continue in full force and effect so long as any
Obligations remain outstanding. The obligations of Borrower to indemnify Bank
with respect to the expenses, damages, losses, costs and liabilities described
in Section 11.1 shall survive until all applicable statute of limitations
periods with respect to actions that may be brought against Bank have run.

     13.7 Countersignature. 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).

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

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

                                    SEACHANGE INTERNATIONAL, INC.

                                    By: /s/ WL Fielder
                                       ----------------------------------

                                    Name: WL FIELDER
                                         --------------------------------

                                    Title: VICE PRESIDENT
                                          -------------------------------

                                    SILICON VALLEY BANK, d/b/a
                                    SILICON VALLEY EAST

                                    By:_________________________________

                                    Name:_______________________________

                                    Title:______________________________

                                      -13-
<PAGE>

                                  SILICON VALLEY BANK

                                  By:__________________________________________

                                  Name:________________________________________

                                  Title:_______________________________________
                                       (Signed in Santa Clan County, California)

                                      -14-
<PAGE>

                                   EXHIBIT A
                                   ---------

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

     All goods, equipment, inventory, contract tights, general intangibles,
accounts, documents, instruments, chattel paper, cash, deposit accounts,
fixtures, letters of credit, investment property, and financial assets, whether
now owned or hereafter acquired, wherever located; and

     All Borrower's Books relating to the foregoing and arty and all claims,
rights and interests in any of the above and all substitutions for, additions,
attachments, accessories, accessions and improvements to and replacements,
products, proceeds and insurance proceeds of any or all of the foregoing.

     The Collateral does not include:

     Any copyright tights, copyright applications, copyright registrations and
like protections in each work of authorship and derivative work, whether
published or unpublished, now owned or later acquired; any patents, trademarks,
service marks and applications therefor, any trade secret rights, including any
rights to unpatented inventions, know-how, operating manuals, license rights and
agreements and confidential information, now owned or hereafter acquired; or any
claims for damages by way of any past, present and future infringement of any of
the foregoing.
<PAGE>

                                   EXHIBIT B
                                   ---------

                           Revolving Promissory Note
                              (Export-Import Line)

$3,000,000.00                                                      _______, 2000

     FOR VALUE RECEIVED, the undersigned (the "Borrower"), promises to pay to
the order of Silicon Valley Bank ("Bank"), at such place as the holder hereof
may designate, in lawful money of the United States of America, the aggregate
unpaid principal amount of all advances ("Advances") made by Bank to Borrower,
up to a maximum principal amount of Three Million Dollars ($3,000,000.00), plus
interest on the aggregate unpaid principal amount of such Advances, at the rates
and in accordance with the terms of the Export-Import Bank Loan and Security
Agreement between Borrower and Bank of even date herewith, as amended from time
to time (the "Loan Agreement") on the first calendar day of each month after an
Advance has been made. The entire principal amount and all accrued interest
shall be due and payable on March 31, 2001, or on such earlier date, as provided
for in the Loan Agreement.

     Borrower irrevocably waives the right to direct the application of any and
all payments at any time hereafter received by Bank from or on behalf of
Borrower, and Borrower irrevocably agrees that Bank shall have the continuing
exclusive right to apply any and all such payments against the then due and
owing obligations of Borrower as Bank may deem advisable. In the absence of a
specific determination by Bank with respect thereto, all payments shall be
applied in the following order: (a) then due and payable fees and expenses; (b)
then due and payable interest payments and mandatory prepayments; and (c) then
due and payable principal payments and optional prepayments.

     Bank is hereby authorized by Borrower to endorse on Bank's books and
records each Advance made by Bank under this Note and the amount of each payment
or prepayment of principal of each such Advance received by Bank; it being
understood, however, that failure to make any such endorsement (or any errors in
notation) shall not affect the obligations of Borrower with respect to Advances
made hereunder, and payments of principal by Borrower shall be credited to
Borrower notwithstanding the failure to make a notation (or any errors in
notation) thereof on such books and records.

     Borrower promises to pay Bank all reasonable costs and expenses, including
all reasonable attorneys' fees, incurred in such collection or in any suit or
action to collect this Note or in any appeal thereof, unless a final court of
competent jurisdiction finds that the Bank acted with gross negligence or
willful misconduct.  Borrower waives presentment, demand, protest, notice of
protest, notice of dishonor, notice of nonpayment, and any and all other notices
and demands in connection with the delivery, acceptance, performance, default or
enforcement of this Note, as well as any applicable statute of limitations. No
delay by Bank in exercising any power or right hereunder shall operate as a
waiver of any power or tight. Time is of the essence as to all obligations
hereunder.
<PAGE>

     This Note is issued pursuant to the Loan Agreement, which shall govern the
rights and obligations of Borrower with respect to all obligations hereunder.

     The law of the Commonwealth of Massachusetts shall apply to this Agreement.
BORROWER ACCEPTS FOR ITSELF AND IN CONVECTION WITH ITS PROPERTIES,
UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT OF
COMPETENT JURISDICTION IN THE COMMONWEALTH OF MASSACHUSETTS IN ANY ACTION, SUM
OR PROCEEDING OF ANY KIND, AGAINST IT WHICH ARISES OUT OF OR BY REASON OF THIS
AGREEMENT; PROVIDED, HOWEVER, THAT IF FOR ANY REASON BANK CANNOT AVAIL ITSELF OF
THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS, BORROWER ACCEPTS JURISDICTION
OF THE COURTS AND VENUE IN SANTA CLARA COUNTY, CALIFORNIA.

     BORROWER WAIVES ITS RIGHT TO A BURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF ANY OF THE EXIM 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. BORROWER
RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER CONSTITUTES A MATERIAL
INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. BORROWER 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.

                              SEACHANGE INTERNATIONAL, INC.

                              By:
                                 -----------------------------
                              Name:
                                   ---------------------------
                              Title:
                                    --------------------------
<PAGE>

                                   EXHIBIT C
                                   ---------

               LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM  -
             DEADLINE FOR SAME DAY PROCESSING IS 3:00 P.M., E.S.T.

TO:  CENTRAL CLIENT SERVICE DIVISION                         DATE:______________
FAX #:  (781) 431-0753                                       TIME:______________

FROM:
     ------------------------------------------------------------------------
     CLIENT NAME (BORROWER)

REQUESTED BY:
             ----------------------------------------------------------------
               AUTHORIZED SIGNERS NAME

AUTHORIZED SIGNATURE:
                     --------------------------------------------------------
PHONE NUMBER:
             ----------------------------------------------------------------

FROM ACCOUNT # ______________________     TO ACCOUNT # ___________________

REQUESTED TRANSACTION TYPE                   REQUEST DOLLAR AMOUNT
--------------------------                   ---------------------

PRINCIPAL INCREASE (ADVANCE)                 $
                                              ---------------------------
PRINCIPAL PAYMENT (ONLY)                     $
                                              ---------------------------
INTEREST PAYMENT (ONLY)                          $
                                                  -----------------------
PRINCIPAL AND INTEREST (PAYMENT)                 $
                                                  -----------------------
OTHER INSTRUCTIONS:
                   -------------------------------------------------------------

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

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

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

_____________________________      __________________________________________
Received by (Bank)                 Phone #

                       __________________________________
                          Authorized Signature (Bank)

--------------------------------------------------------------------------------
<PAGE>

                                   EXHIBIT D
                                   ---------

                           BORROWING BASE CERTIFICATE

                              COLLATERAL SCHEDULE
                          (FOREIGN AIR LINE OF CREDIT)

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

Borrower:    Seachange International, Inc.    Lender:   Silicon Valley Bank
             124 Acton Street                           3003 Tasman Drive
             Maynard MA  01754                          Santa Clara, CA  95054

Commitment Amount: $3,000,000.00
--------------------------------------------------------------------------------
FOREIGN ACCOUNTS RECEIVABLE FROM EXPORT ACTIVITIES

     1.   Accounts Receivable Book Value as of _____________      $__________
     2.   Additions (please explain on reverse)                   $__________
     3.   TOTAL FOREIGN ACCOUNTS RECEIVABLE                       $__________

ACCOUNTS RECEIVABLE DEDUCTIONS

     4.   Term in excess of 120 days                              $__________
     5.   Amounts over 60 days from due date of invoice           $__________
     6.   Balance of 25% over 120 day accounts                    $__________
     7.   Excess 25% Concentration                                $__________
     8.   Accounts not payable in the U.S.                        $__________
     9.   Governmental and Military Accounts                      $__________
     10.  Contra Accounts                                         $__________
     11.  Promotion, Demo or Consignment Accounts                 $__________
     12.  Intercompany/Employee and Affiliate Accounts            $__________
     13.  Accounts in the form of L/Cs, if subject items have
          not yet been shipped by Borrower                        $__________
     14.  Accounts, if any, arising from Inventory not
          originally located in and shipped from the US.          $__________
     15.  Accounts arising from the sale of defense articles
          or items                                                $__________
     16.  Accounts of buyers located in or form countries in
          which shipment is prohibited or no coverage available   $__________
     17.  Amounts due and collectable outside U.S.                $__________
     18.  Other exclusions under Borrower Agreement or otherwise  $__________
     19.  TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS                    $__________
     20.  Eligible Accounts (No. 3 - No. 19)                      $__________
     21.  Loan Value of Accounts (90%-Advance)                    $__________
INVENTORY
     22.  Eligible Export-Related Inventory Value as of _______   $__________
     23.  LOAN VALUE OF INVENTORY (50% of #22)                    $__________
BALANCES
     24.  Maximum Loan Amount                                     $3,000,000.00
     25.  Total Available (2t plus lesser of (i) $750,000.00
          or (ii) #23)                                            $__________
     26.  Present balance owing on Line of Credit                 $__________
     27.  Outstanding under Sublimits                             $__________
     28.  RESERVE POSITION (No. 25 - (No. 26 + No. 27))           $__________
<PAGE>

     The undersigned represents and warrants that the foregoing is true,
complete and correct, and that the information reflected in this Collateral
Schedule complies with the representations and warranties set forth is the
Borrower Agreement, executed by Borrower and acknowledged by Lender, and the
Export-Import Bank Loan and Security Agreement, executed by Borrower and
acknowledged by Leader dated _______________, 2000, as may be amended from time
to time, as if all representations and warranties were made as of the date
hereof and that Borrower is, and shall remain, in full compliance with its
agreements, covenants, and obligations under such agreement. Such
representations and warranties include, without limitation, the following:
Borrower is using disbursements only for the purpose of enabling Borrower to
finance the cost of manufacturing, producing, purchasing or selling items
intended for export. Borrower is not using disbursements foe the purpose of (a)
servicing any of Borrower's unrelated pre-existing or future indebtedness; (b)
acquiring fixed assets or capital goods for the use of Borrower's business; (c)
acquiring, equipping, equipping or renting commercial spaces outside the United
States; (d) supporting research and development; (c) paying salaries of non-U.S.
citizens or non-U.S. permanent residents who are located in the offices of the
United States; or (f) serving as a retainage or warranty bond.  Additionally,
disbursements are not being used to finance the manufacture, purchase or sale of
say of the following: (a) items to be sold to a buyer located in a country in
which the Export Import Bank of the United States is legally prohibited from
doing business; (b) that part of the cost of the items which is not U.S. Content
unless such part is not greater than fifty percent (50%) of the cost of the
items and is incorporated into the items in the United States; (c) defense
articles or defense services or items directly or indirectly destined for use by
military organizations designed primarily far military use (regardless of the
nature or actual use of the items); or (d) any items to be used is the
construction, alteration, operation or maintenance of nuclear power, enrichment,
reprocessing, research of heavy water production facilities.

Sincerely,

SEACHANGE INTERNATIONAL, INC.

By:
   ---------------------------------

Name:
     -------------------------------
       Chief Financial Officer

Date:
     -------------------------------

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

                                          BANK USE ONLY
                                    Received
                                    By: ___________________
                                    Date: __________________
                                    Verified
                                    By: ___________________

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

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