Document:

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                                                                   EXHIBIT 10.13
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                           LOAN AND SECURITY AGREEMENT
                               ANDA NETWORKS, INC.

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                                       TABLE OF CONTENTS

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

2       LOAN AND TERMS OF PAYMENT............................................................4

        2.1     Credit Extensions............................................................4
        2.2     Overadvances.................................................................5
        2.3     Interest Rate, Payments......................................................5
        2.4     Fees.........................................................................5

3       CONDITIONS OF LOANS..................................................................6

        3.1     Conditions Precedent to Initial Credit Extension.............................6
        3.2     Conditions Precedent to Initial Advance under the Committed Revolving
                Line.........................................................................6
        3.3     Conditions Precedent to all Credit Extensions................................6

4       CREATION OF SECURITY INTEREST........................................................6

        4.1     Grant of Security Interest...................................................6

5       REPRESENTATIONS AND WARRANTIES.......................................................6

        5.1     Due Organization and Authorization...........................................6
        5.2     Collateral...................................................................7
        5.3     Litigation...................................................................7
        5.4     No Material Adverse Change in Financial Statements...........................7
        5.5     Solvency.....................................................................7
        5.6     Regulatory Compliance........................................................7
        5.7     Subsidiaries.................................................................7
        5.8     Full Disclosure..............................................................8

6       AFFIRMATIVE COVENANTS................................................................8

        6.1     Government Compliance........................................................8
        6.2     Financial Statements, Reports, Certificates..................................8
        6.3     Inventory; Returns...........................................................8
        6.4     Taxes........................................................................9
        6.5     Insurance....................................................................9
        6.6     Primary Accounts.............................................................9
        6.7     Further Assurances...........................................................9

7       NEGATIVE COVENANTS...................................................................9

        7.1     Dispositions.................................................................9
        7.2     Changes in Business, Ownership, Management or Business Locations.............9
        7.3     Mergers or Acquisitions......................................................9
        7.4     Indebtedness................................................................10
        7.5     Encumbrance.................................................................10
        7.6     Distributions; Investments..................................................10
        7.7     Transactions with Affiliates................................................10
        7.8     Subordinated Debt...........................................................10
        7.9     Compliance..................................................................10

8       EVENTS OF DEFAULT...................................................................10

        8.1     Payment Default.............................................................10
        8.2     Covenant Default............................................................10
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<S>     <C>                                                                                 <C>
        8.3     Material Adverse Change.....................................................11
        8.4     Attachment..................................................................11
        8.5     Insolvency..................................................................11
        8.6     Other Agreements............................................................11
        8.7     Judgments...................................................................11
        8.8     Misrepresentations..........................................................11

9       BANK'S RIGHTS AND REMEDIES..........................................................12

        9.1     Rights and Remedies.........................................................12
        9.2     Power of Attorney...........................................................12
        9.3     Accounts Collection.........................................................12
        9.4     Bank Expenses...............................................................13
        9.5     Bank's Liability for Collateral.............................................13
        9.6     Remedies Cumulative.........................................................13
        9.7     Demand Waiver...............................................................13

10      NOTICES.............................................................................13

11      CHOICE OF LAW , VENUE AND JURY TRIAL WAIVER.........................................13

12      GENERAL PROVISIONS..................................................................14

        12.1    Successors and Assigns......................................................14
        12.2    Indemnification.............................................................14
        12.3    Time of Essence.............................................................14
        12.4    Severability of Provision...................................................14
        12.5    Amendments in Writing, Integration..........................................14
        12.6    Counterparts................................................................14
        12.7    Survival....................................................................14
        12.8    Confidentiality.............................................................14
        12.9    Attorneys' Fees, Costs and Expenses.........................................15
        12.10   Prepayment..................................................................15

13      DEFINITIONS.........................................................................15

        13.1    Definitions.................................................................15
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        THIS LOAN AND SECURITY AGREEMENT dated February 18, 1999, between
SILICON VALLEY BANK ("Bank"), whose address is 3003 Tasman Drive, Santa Clara,
California 95054 and ANDA NETWORKS, INC. ("Borrower"), whose address is 2921
Copper Road, Santa Clara, California 95051 provides the terms on which Bank will
lend to Borrower and Borrower will repay Bank. The parties agree as follows:

1       ACCOUNTING AND OTHER TERMS

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

2       LOAN AND TERMS OF PAYMENT

2.1     CREDIT EXTENSIONS.

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

2.1.1   BRIDGE LOAN.

        (a) Bank will make advances ("Bridge Loan Advance" and, collectively,
"Bridge Loan Advances"), not exceeding the Committed Bridge Loan through the
Bridge Loan Maturity Date when all outstanding Bridge Loan Advances plus all
accrued interest will be due and payable. Bridge Loan Advances, when repaid, may
not be reborrowed.

        (b) To obtain a Bridge Loan Advance, Borrower must notify Bank (the
notice is irrevocable) by facsimile no later than 3:00 p.m. Pacific time 1
Business Day before the day on which the Bridge Loan Advance is to be made. The
notice must be in the form of Exhibit B. The notice must be signed by a
Responsible Officer or designee.

2.1.2   EQUIPMENT ADVANCES.

        (a) Through August 18, 1999 (the "Equipment Availability End Date"),
Bank will make advances ("Equipment Advance" and, collectively, "Equipment
Advances") not exceeding the Committed Equipment Line. The Equipment Advances
may only be used to finance or refinance Equipment purchased on or after 90 days
before the date of this Agreement and may not exceed 100% of the new equipment
invoice excluding taxes, shipping, warranty charges, freight discounts and
installation expense. Software and used Equipment may constitute up to 25% of
the aggregate Equipment Advances.

        (b) Interest accrues from the date of each Equipment Advance at the rate
in Section 2.3(a) and is payable monthly until the Equipment Availability End
Date occurs. Each Equipment Advance is payable in 24 equal monthly installments
of principal, plus accrued interest, beginning on the last day of each month
following the Equipment Advance and ending on 24th month following such
Equipment Advance (the "Equipment Advance Maturity Date"). Equipment Advances
when repaid may not be reborrowed.

        (c) To obtain an Equipment Advance, Borrower must notify Bank (the
notice is irrevocable) by facsimile no later than 3:00 p.m. Pacific time 1
Business Day before the day on which the Equipment Advance is to be made. The
notice in the form of Exhibit B (Payment/Advance Form) must be signed by a
Responsible Officer or designee and include a copy of the invoice for the
Equipment being financed.

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2.1.3   REVOLVING ADVANCES.

        (a) Subject to Section 3 and at Borrower's option, Bank will make
Advances not exceeding the lesser of (A) the Committed Revolving Line or (B) the
Borrowing Base. Amounts borrowed under this Section may be repaid and reborrowed
during the term of this Agreement.

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

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

2.2     OVERADVANCES.

        If Borrower's Obligations under Section 2.1.3 exceed the lesser of
either (i) the Committed Revolving Line or (ii) the Borrowing Base, Borrower
must immediately pay Bank the excess.

2.3     INTEREST RATE, PAYMENTS.

        (a) Interest Rate. (i) Bridge Loan Advances accrue interest on the
outstanding principal balance at a per annum rate equal to the Prime Rate; (ii)
Equipment Advances accrue interest on the outstanding principal balance at a per
annum rate of 0.5 of one percentage point above the Prime Rate; and (iii)
Advances accrue interest on the outstanding principal balance at a per annum
rate equal to the Prime Rate. After an Event of Default, Obligations accrue
interest at 5 percent above the rate effective immediately before the Event of
Default. The interest rate increases or decreases when the Prime Rate changes.
Interest is computed on a 360 day year for the actual number of days elapsed.

        (b) Payments. Interest due on the Bridge Loan is payable on the last day
of each month. Interest due on the Equipment Advances is payable on the last day
of each month. Interest due on the Committed Revolving Line is payable on the
last day of each month Bank may debit any of Borrower's deposit accounts
including Account Number 330107065 for principal and interest payments or any
amounts Borrower owes Bank. Bank will notify Borrower when it debits Borrower's
accounts. These debits are not a set-off. Payments received after 12:00 noon
Pacific time are considered received at the opening of business on the next
Business Day. When a payment is due on a day that is not a Business Day, the
payment is due the next Business Day and additional fees or interest accrue.

2.4     FEES.

        Borrower will pay:

        (a) Facility Fee. A fully earned, non-refundable Facility Fee of $1,250
due on the Closing Date, in the event that Borrower decides to accept the terms
of the Committed Revolving Line ; and

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

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3       CONDITIONS OF LOANS

3.1     CONDITIONS PRECEDENT TO INITIAL CREDIT EXTENSION.

        Bank's obligation to make the initial Credit Extension is subject to the
condition precedent that Bank receives the agreements, documents and fees
provided for herein.

3.2     CONDITIONS PRECEDENT TO INITIAL ADVANCE UNDER THE COMMITTED REVOLVING
        LINE.

        Bank's obligation to make the initial Advance under the Committed
Revolving Line is subject to the conditions precedent that:

        Borrower has closed an equity round of at least $5,000,000;

        All outstanding Bridge Loan Advances under the Committed Bridge Loan
shall be paid in full;

        Borrower has provided to Bank current borrowing base certificate;

        Bank has completed an audit of Borrower's Accounts, with results
satisfactory to Bank; and

        Borrower's payment of an activation fee of $3,500 (which will include
the initial Accounts audit fee):

3.3     CONDITIONS PRECEDENT TO ALL CREDIT EXTENSIONS.

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

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

        (b) the representations and warranties in Section 0 must be materially
true on the date of the Payment/Advance Form and on the effective date of each
Advance and no Event of Default may have occurred and be continuing, or result
from the credit Extension. Each Credit Extension is Borrower's representation
and warranty on that date that the representations and warranties of Section 0
remain true.

4       CREATION OF SECURITY INTEREST

4.1     GRANT OF SECURITY INTEREST.

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

5       REPRESENTATIONS AND WARRANTIES

        Borrower represents and warrants as follows:

5.1     DUE ORGANIZATION AND AUTHORIZATION.

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

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        The execution, delivery and performance of the Loan Documents have been
duly authorized, and do not conflict with Borrower's formation documents, nor
constitute an event of default under any material agreement by which Borrower is
bound. Borrower is not in default under any agreement to which or by which it is
bound in which the default could cause a Material Adverse Change.

5.2     COLLATERAL.

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

5.3     LITIGATION.

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

5.4     NO MATERIAL ADVERSE CHANGE IN FINANCIAL STATEMENTS.

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

5.5     SOLVENCY.

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

5.6     REGULATORY COMPLIANCE.

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

5.7     SUBSIDIARIES.

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

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5.8     FULL DISCLOSURE.

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

6       AFFIRMATIVE COVENANTS

        Borrower will do all of the following:

6.1     GOVERNMENT COMPLIANCE.

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

6.2     FINANCIAL STATEMENTS, REPORTS, CERTIFICATES.

        (a) Borrower will deliver to Bank, beginning as of the month ended
December 31, 1998: (i) as soon as available, but no later than 30 days after the
last day of each month, a company prepared consolidated balance sheet and income
statement covering Borrower's consolidated operations during the period, in a
form and certified by a Responsible Officer acceptable to Bank; (ii) as soon as
available, but no later than 120 days after the last day of Borrower's fiscal
year, audited consolidated financial statements prepared under GAAP,
consistently applied, together with an unqualified opinion on the financial
statements from an independent certified public accounting firm acceptable to
Bank; (iii) a prompt report of any legal actions pending or threatened against
Borrower or any Subsidiary that could result in damages or costs to Borrower or
any Subsidiary of $100,000 or more; and (iv) budgets, sales projections,
operating plans or other financial information Bank requests.

        (b) Within 20 days after the last day of each month, beginning with the
first month that there are outstanding Advances and prior to the initial Advance
under the Committed Revolving Line, Borrower will deliver to Bank a Borrowing
Base Certificate signed by a Responsible Officer in the form of Exhibit C, with
aged listings of accounts receivable.

        (c) Bank has the right to audit Borrower's Collateral at Borrower's
expense, but the audits will be conducted no more often than twice every year
unless an Event of Default has occurred and is continuing. Notwithstanding the
foregoing, the initial audit (the cost of which shall be included in Borrower's
activation fee as described in Section 3.2) of Borrower's Collateral shall be
prior to any Advances under the Committed Revolving Line.

6.3     INVENTORY; RETURNS.

        Borrower will keep all Inventory in good and marketable condition, free
from material defects. Returns and allowances between Borrower and its account
debtors will follow Borrower's customary practices as they exist at execution of
this Agreement. Borrower must promptly notify Bank of all returns, recoveries,
disputes and claims, that involve more than $100,000.

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6.4     TAXES.

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

6.5     INSURANCE.

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

6.6     PRIMARY ACCOUNTS.

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

6.7     FURTHER ASSURANCES.

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

7       NEGATIVE COVENANTS

        Borrower will not do any of the following:

7.1     DISPOSITIONS.

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

7.2     CHANGES IN BUSINESS, OWNERSHIP, MANAGEMENT OR BUSINESS LOCATIONS.

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

7.3     MERGERS OR ACQUISITIONS.

        Merge or consolidate, or permit any of its Subsidiaries to merge or
consolidate, with any other Person, or acquire, or permit any of its
Subsidiaries to acquire, all or substantially all of the capital stock or
property of another Person, except where (i) no Event of Default has occurred
and is continuing or would result from such action during the term of this
Agreement or result in a decrease of more than 25% of Tangible Net Worth; or
(ii) merge or consolidate a Subsidiary into another Subsidiary or into Borrower.

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7.4     INDEBTEDNESS.

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

7.5     ENCUMBRANCE.

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

7.6     DISTRIBUTIONS; INVESTMENTS.

        Except as provided in Section 7.3, directly or indirectly acquire or own
any Person, or make any Investment in any Person, other than Permitted
Investments, or permit any of its Subsidiaries to do so. Pay any dividends or
make any distribution or payment or redeem, retire or purchase any capital
stock, except for repurchases of stock from former employees of Borrower in
accordance with the terms of its employee stock purchase agreement, provided,
however, that immediately prior to and following such repurchases there exists
no Event of Default under the Loan Documents.

7.7     TRANSACTIONS WITH AFFILIATES.

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

7.8     SUBORDINATED DEBT.

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

7.9     COMPLIANCE.

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

8       EVENTS OF DEFAULT

        Any one of the following is an Event of Default:

8.1     PAYMENT DEFAULT.

        If Borrower fails to pay any of the Obligations;

8.2     COVENANT DEFAULT.

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

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

8.3     MATERIAL ADVERSE CHANGE.

        Bank's obligation to lend the undisbursed portion of the Credit
Extensions will terminate if, in Bank's sole discretion, there has been a
material adverse change in the general affairs, management, results of
operation, condition (financial or otherwise) or the prospects of Borrower,
whether or not arising from transactions in the ordinary course of business, or
there has been any material adverse deviation by Borrower from the most recent
business plan of Borrower presented to and accepted by Bank prior to the
execution of this Agreement.

8.4     ATTACHMENT.

        If any material portion of Borrower's assets is attached, seized, levied
on, or comes into possession of a trustee or receiver and the attachment,
seizure or levy is not removed in 30 days, or if Borrower is enjoined,
restrained, or prevented by court order from conducting a material part of its
business or if a judgment or other claim becomes a Lien on a material portion of
Borrower's assets, or if a notice of lien, levy, or assessment is filed against
any of Borrower's assets by any government agency and not paid within 30 days
after Borrower receives notice. These are not Events of Default if stayed or if
a bond is posted pending contest by Borrower (but no Credit Extensions will be
made during the cure period);

8.5     INSOLVENCY.

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

8.6     OTHER AGREEMENTS.

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

8.7     JUDGMENTS.

        If a money judgment(s) in the aggregate of at least $100,000 is rendered
against Borrower and is unsatisfied and unstayed for 30 days (but no Credit
Extensions will be made before the judgment is stayed or satisfied); or

8.8     MISREPRESENTATIONS.

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

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9       BANK'S RIGHTS AND REMEDIES

9.1     RIGHTS AND REMEDIES.

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

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

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

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

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

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

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

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

9.2     POWER OF ATTORNEY.

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

9.3     ACCOUNTS COLLECTION.

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

                                       12
<PAGE>   13

9.4     BANK EXPENSES.

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

9.5     BANK'S LIABILITY FOR COLLATERAL.

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

9.6     REMEDIES CUMULATIVE.

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

9.7     DEMAND WAIVER.

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

10      NOTICES

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

11      CHOICE OF LAW , VENUE AND JURY TRIAL WAIVER

        California law governs the Loan Documents without regard to principles
of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction
of the State and Federal courts in Santa Clara County, California.

BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY CONTEMPLATED
TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS
WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT.
EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

                                       13
<PAGE>   14

12      GENERAL PROVISIONS

12.1    SUCCESSORS AND ASSIGNS.

        This Agreement binds and is for the benefit of the successors and
permitted assigns of each party. Borrower may not assign this Agreement or any
rights under it without Bank's prior written consent which may be granted or
withheld in Bank's discretion. Bank has the right, without the consent of or
notice to Borrower, to sell, transfer, negotiate, or grant participation in an
interest in, Bank's obligations, rights and benefits under this Agreement,
provided, however, Bank shall not effect any such transfer that results in Bank
not continuing to hold controlling voting power respecting the lenders' exercise
of its rights and remedies hereunder.

12.2    INDEMNIFICATION.

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

12.3    TIME OF ESSENCE.

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

12.4    SEVERABILITY OF PROVISION.

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

12.5    AMENDMENTS IN WRITING, INTEGRATION.

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

12.6    COUNTERPARTS.

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

12.7    SURVIVAL.

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

12.8    CONFIDENTIALITY.

        In handling any confidential information, Bank will exercise the same
degree of care that it exercises for its own proprietary information, but
disclosure of information may be made (i) to Bank's

                                       14
<PAGE>   15

subsidiaries or affiliates in connection with their business with Borrower, (ii)
to prospective transferees or purchasers of any interest in the Loans, (iii) as
required by law, regulation, subpoena, or other order, (iv) as required in
connection with Bank's examination or audit and (v) as Bank considers
appropriate exercising remedies under this Agreement. Confidential information
does not include information that either: (a) is in the public domain or in
Bank's possession when disclosed to Bank, or becomes part of the public domain
after disclosure to Bank; or (b) is disclosed to Bank by a third party, if Bank
does not know that the third party is prohibited from disclosing the
information.

12.9    ATTORNEYS' FEES, COSTS AND EXPENSES.

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

12.10   PREPAYMENT.

        Borrower may prepay all or any portion of any Obligation owed to Bank
without any penalty or premium.

13      DEFINITIONS

13.1    DEFINITIONS.

        In this Agreement:

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

        "ADVANCE" or "ADVANCES" is a loan advance (or advances) under the
Committed Revolving Line.

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

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

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

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

        "BRIDGE LOAN ADVANCE" is defined in Section 2.1.1

        "BRIDGE LOAN MATURITY DATE" is the earlier to occur of: (a) November 18,
1999 or (b) the close of Borrower's next round of equity financing.

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

                                       15
<PAGE>   16

        "CLOSING DATE" is the date of this Agreement.

        "CODE" is the California Uniform Commercial Code.

        "COLLATERAL" is the property described on Exhibit A.

        "COMMITTED BRIDGE LOAN" is a Credit Extension of up to $750,000.

        "COMMITTED EQUIPMENT LINE" is a Credit Extension of up to $250,000.

        "COMMITTED REVOLVING LINE" is an Advance of up to $1,000,000.

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

        "CREDIT EXTENSION" is each Advance, Bridge Loan Advance, Equipment
Advance or any other extension of credit by Bank for Borrower's benefit.

        "ELIGIBLE ACCOUNTS" are Accounts in the ordinary course of Borrower's
business that meet all Borrower's representations and warranties in Section 5.2;
but Bank may change eligibility standards by giving Borrower notice. Unless Bank
agrees otherwise in writing, Eligible Accounts will not include:

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

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

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

        (d) Accounts for an account debtor, including Affiliates, whose total
        obligations to Borrower exceed 25% of all Accounts, for the amounts that
        exceed that percentage, unless the Bank approves in writing, which such
        approval shall not be unreasonably withheld;

        (e) Accounts for which the account debtor does not have its principal
        place of business in the United States;

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

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

                                       16
<PAGE>   17

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

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

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

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

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

        "EQUIPMENT ADVANCE" is defined in Section 2.1.2

        "EQUIPMENT AVAILABILITY END DATE" is defined in Section 2.1.2

        "EQUIPMENT ADVANCE MATURITY DATE" is defined in Section 2.1.2

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

        "GAAP" is generally accepted accounting principles.

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

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

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

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

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

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

        "MATERIAL ADVERSE CHANGE" is defined in Section 8.3.

                                       17
<PAGE>   18

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

        "PERMITTED INDEBTEDNESS" is:

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

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

        (c) Subordinated Debt;

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

        (e) Indebtedness secured by Permitted Liens;

        "PERMITTED INVESTMENTS" are:

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

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

        "PERMITTED LIENS" are:

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

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

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

        (d) Leases or subleases and licenses or sublicenses granted in the
ordinary course of Borrower's business;

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

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

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

                                       18
<PAGE>   19

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

        "REVOLVING MATURITY DATE" is twelve (12) months following the date of
Borrower's initial activation of the Committed Revolving Line.

        "SCHEDULE" is any attached schedule of exceptions.

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

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

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

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

BORROWER:

ANDA NETWORKS, INC.

By:_______________________________________

Title:____________________________________

BANK:

SILICON VALLEY BANK

By:_______________________________________

Title:____________________________________

                                       19
<PAGE>   20

                                    EXHIBIT A

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

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

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

        All contract rights and general intangibles (specifically excluding
intellectual property) now owned or hereafter acquired, including, without
limitation, license agreements, franchise agreements, blueprints, drawings,
purchase orders, customer lists, route lists, computer discs, computer tapes,
literature, reports, catalogs, design rights, income tax refunds, payments of
insurance and rights to payment of any kind;

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

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

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

        Notwithstanding anything contained herein to the contrary, Collateral
shall not include any of Borrower's intellectual property including without
limitation any patents, trademarks or copyrights and, except for the Accounts
generated from such intellectual property, any application or registration
thereof and any trade secrets.

<PAGE>   21

                                    EXHIBIT B

                   LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM

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

TO:  CENTRAL CLIENT SERVICE DIVISION             DATE:__________________________

FAX#:  (408) 496-2426                            TIME:__________________________

________________________________________________________________________________

FROM:  ANDA NETWORKS, INC.
       _________________________________________________________________________
                                    CLIENT NAME (BORROWER)
REQUESTED BY:___________________________________________________________________
                                    AUTHORIZED SIGNER'S NAME
________________________________________________________________________________

AUTHORIZED SIGNATURE:___________________________________________________________

PHONE NUMBER:___________________________________________________________________

FROM ACCOUNT #_____________________________ TO ACCOUNT #________________________

REQUESTED TRANSACTION TYPE                  REQUESTED DOLLAR AMOUNT

PRINCIPAL INCREASE (ADVANCE)                $___________________________________

PRINCIPAL PAYMENT (ONLY)                    $___________________________________

INTEREST PAYMENT (ONLY)                     $___________________________________

PRINCIPAL AND INTEREST (PAYMENT)            $___________________________________

OTHER INSTRUCTIONS:_____________________________________________________________
________________________________________________________________________________

All Borrower's representations and warranties in the Loan and Security Agreement
are true, correct and complete in all material respects on the date of the
telephone request for and Advance confirmed by this Borrowing Certificate; but
those representations and warranties expressly referring to another date shall
be true, correct and complete in all material respects as of that 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>   22

                                    EXHIBIT C
                           BORROWING BASE CERTIFICATE
________________________________________________________________________________

Borrower:    ANDA NETWORKS, INC.                  Bank:    Silicon Valley Bank
                                                           3003 Tasman Drive
                                                           Santa Clara, CA 95054

Commitment Amount: $1,000,000 To be used when the Committed Revolving Line
become available
________________________________________________________________________________

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

ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
4.    Amounts over 90 days due                           $_________
5.    Balance of 50% over 90 day accounts                $_________
6.    Credit balances                                    $_________
7.    Concentration Limits in excess of 25%              $_________
8.    Foreign Accounts                                   $_________
9.    Governmental Accounts                              $_________
10.   Contra Accounts                                    $_________
11.   Promotion or Demo Accounts                         $_________
12.   Intercompany/Employee Accounts                     $_________
13.   Other (please explain on reverse)                  $_________
14.   TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS                            $_________
15.   Eligible Accounts (#3 minus #14)                                $_________
16.   LOAN VALUE OF ACCOUNTS (80% of #15)                             $_________

BALANCES
17.   Maximum Loan Amount                                $_________
18.   Total Funds Available [Lesser of #17 or #16]                    $_________
19.   Present balance owing on Line of Credit            $_________
20.   Outstanding under Sublimits (  )                   $_________
21.   RESERVE POSITION (#18 minus #19 and #20)                        $_________

The undersigned represents and warrants that this is true, complete and correct,
and that the information in this Borrowing Base Certificate complies with the
representations and warranties in the Loan and Security Agreement between the
undersigned and Silicon Valley Bank.

COMMENTS:

                                                  BANK USE ONLY

                                              Rec'd By:_________________
                                                        Auth. Signer
ANDA NETWORKS, INC.                           Date:_____________________

                                              Verified:_________________
By: ________________________________                    Auth. Signer
        Authorized Signer                     Date:_____________________

<PAGE>   23

[SILICON LOGO]

                               SILICON VALLEY BANK

                       PRO FORMA INVOICE FOR LOAN CHARGES

BORROWER:                    ANDA NETWORKS, INC.

LOAN OFFICER:                JOELLEN ADEMSKI

DATE:                        FEBRUARY 18, 1999

<TABLE>
<CAPTION>
                            <S>                                   <C>
                             REVOLVING LOAN FEE                   $1,250.00
                             CREDIT REPORT                            35.00
                             UCC SEARCH FEE                          150.00
                             UCC FILING FEE                           40.00
                             DOCUMENTATION FEE                       750.00
                                                                  ---------
                             TOTAL FEE DUE                        $2,225.00
                                                                  =========
</TABLE>

PLEASE INDICATE THE METHOD OF PAYMENT:

        { }   A CHECK FOR THE TOTAL AMOUNT IS ATTACHED.

        { }   DEBIT DDA # __________________ FOR THE TOTAL AMOUNT.

        { }   LOAN PROCEEDS

BORROWER:

BY:_________________________________________
     (AUTHORIZED SIGNER)

____________________________________________
SILICON VALLEY BANK               (DATE)
ACCOUNT OFFICER'S SIGNATURE

<PAGE>   24

                            NEGATIVE PLEDGE AGREEMENT

        This Negative Pledge Agreement is made as of February 18, 1999 by and
between ANDA NETWORKS, INC. ("Borrower") and Silicon Valley Bank ("Bank").

In connection with, among other documents, the Loan and Security Agreement (the
"Loan Documents") being concurrently executed herewith between Borrower and
Bank, Borrower agrees as follows:

        1.     Borrower shall not (except as permitted under the Loan Documents)
               sell, transfer, assign, mortgage, pledge, lease, grant a security
               interest in, or encumber any of Borrower's intellectual property,
               including, without limitation, the following:

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

               b.     All mask works or similar rights available for the
                      protection of semiconductor chips, now owned or hereafter
                      acquired;

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

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

               e.     All patents, patent applications and like protections
                      including, without limitation, improvements, divisions,
                      continuations, renewals, reissues, extensions and
                      continuations-in-part of the same, including without
                      limitation the patents and patent applications;

               f.     Any trademark and servicemark rights, whether registered
                      or not, applications to register and registrations of the
                      same and like protections, and the entire goodwill of the
                      business of Borrower connected with and symbolized by such
                      trademarks, including without limitation;

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

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

               i.     All amendments, extensions, renewals and extensions of any
                      of the Copyrights, Trademarks, Patents, or Mask Works; and

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

<PAGE>   25

        2.     It shall be an Event of Default under the Loan Documents between
               Borrower and Bank if there is a breach of any term of this
               Negative Pledge Agreement.

        3.     Capitalized terms used but not otherwise defined herein shall
               have the same meaning as in the Loan Documents.

        4.     In the event of any conflict between the provisions of the Loan
               Documents and the provisions of this Negative Pledge Agreement,
               the provisions of the Loan Documents shall supercede and control.

BORROWER:

ANDA NETWORKS, INC.

By:____________________________
Name:__________________________
Title:_________________________

BANK:

SILICON VALLEY BANK

By:____________________________
Name:__________________________
Title:_________________________

                                       2
<PAGE>   26

                         CORPORATE BORROWING RESOLUTION

BORROWER:     ANDA NETWORKS, INC.             BANK:   SILICON VALLEY BANK
              2921 COPPER ROAD                        3003 TASMAN DRIVE
              SANTA CLARA, CA 95051                   SANTA CLARA, CA 95054-1191

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

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

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

<TABLE>
<CAPTION>
          NAMES                     POSITIONS              ACTUAL SIGNATURES
<S>                          <C>                       <C>
___________________________  ________________________  _________________________

___________________________  ________________________  _________________________

___________________________  ________________________  _________________________

___________________________  ________________________  _________________________

___________________________  ________________________  _________________________
</TABLE>

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

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

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

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

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

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

<PAGE>   27

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

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

        FURTHER ACTS. In the case of lines of credit, to designate additional or
        alternate individuals as being authorized to request advances
        thereunder, and in all cases, to do and perform such other acts and
        things, to pay any and all fees and costs, and to execute and deliver
        such other documents and agreements, INCLUDING AGREEMENTS WAIVING THE
        RIGHT TO A TRIAL BY JURY, as they may in their discretion deem
        reasonably necessary or proper in order to carry into effect the
        provisions of these Resolutions.

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

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

IN WITNESS WHEREOF, I have hereunto set my hand on February 18, 1999 and attest
that the signatures set opposite the names listed above are their genuine
signatures.

CERTIFIED TO AND ATTESTED BY:

X ______________________________________________
   *Secretary or Assistant Secretary

X ______________________________________________

*NOTE: In case the Secretary or other certifying officer is designated by the
foregoing resolutions as one of the signing officers, this resolution should
also be signed by a second Officer or Director of Borrower.

                                       2
<PAGE>   28

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR
OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT
OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
CORPORATION AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.

                            WARRANT TO PURCHASE STOCK

Corporation: ANDA NETWORKS, INC., a Delaware corporation

Number of Shares: 15,000

Class of Stock: Series B Preferred

Initial Exercise Price: 60% of the price given at the next equity round,
provided, however, in any case not less than the price given at the Series B
round of financing

Issue Date: February 18, 1999

Expiration Date: February 18, 2004, subject to Section 4.1 hereof

        THIS WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for
other good and valuable consideration, SILICON VALLEY BANK ("Holder") is
entitled to purchase the number of fully paid and nonassessable shares of the
class of securities (the "Shares") of the corporation (the "Company") at the
initial exercise price per Share (the "Warrant Price") all as set forth above
and as adjusted pursuant to Article 2 of this Warrant, subject to the provisions
and upon the terms and conditions set forth in this Warrant.

ARTICLE 1. EXERCISE.

            1.1 Method of Exercise. Holder may exercise this Warrant by
delivering a duly executed Notice of Exercise in substantially the form attached
as Appendix 1 to the principal office of the Company. Unless Holder is
exercising the conversion right set forth in Section 1.2, Holder shall also
deliver to the Company a check for the aggregate Warrant Price for the Shares
being purchased.

            1.2 Conversion Right. In lieu of exercising this Warrant as
specified in Section 1.1, Holder may from time to time convert this Warrant, in
whole or in part, into a number of Shares determined by dividing (a) the
aggregate fair market value of the Shares or other securities otherwise issuable
upon exercise of this Warrant minus the aggregate Warrant Price of such Shares
by (b) the fair market value of one Share. The fair market value of the Shares
shall be determined pursuant to Section 1.4.

            1.3 Intentionally Omitted

            1.4 Fair Market Value. If the Shares are traded in a public market,
the fair market value of the Shares shall be the closing price of the Shares (or
the closing price of the Company's stock into which the Shares are convertible)
reported for the business day immediately before Holder delivers its Notice of
Exercise to the Company; provided, that, if the Warrant is being exercised upon
the closing of the IPO, the value will be the initial "Price to Public" of one
share of such Preferred Stock (or Common Stock issuable upon conversion of such
Preferred Stock) specified in the final prospectus with respect to such
offering. If the Shares are not traded in a public market, the Board of
Directors of the Company shall determine fair market value in its reasonable
good faith judgment. The foregoing notwithstanding, if Holder advises the Board
of Directors in writing that Holder disagrees with such determination, then the
Company and Holder shall promptly agree upon a reputable investment banking firm
to undertake such valuation and any fees and expenses shall be paid by Holder.

            1.5 Delivery of Certificate and New Warrant. Promptly after Holder
exercises or converts this Warrant, the Company shall deliver to Holder
certificates for the Shares acquired and, if this

                                       2
<PAGE>   29

Warrant has not been fully exercised or converted and has not expired, a new
Warrant representing the Shares not so acquired.

            1.6 Replacement of Warrants. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of loss, theft or destruction, on delivery of an
indemnity agreement reasonably satisfactory in form and amount to the Company
or, in the case of mutilation, on surrender and cancellation of this Warrant,
the Company at its expense shall execute and deliver, in lieu of this Warrant, a
new warrant of like tenor.

            1.7 Repurchase on Sale, Merger, or Consolidation of the Company.

                1.7.1. "Acquisition". For the purpose of this Warrant,
"Acquisition" means any sale, license, or other disposition of all or
substantially all of the assets of the Company, or any reorganization,
consolidation, or merger of the Company that results in the transfer of fifty
percent (50%) or more of the outstanding voting securities of the Company.

                1.7.2. Assumption of Warrant. Upon the closing of any
Acquisition the successor entity shall assume the obligations of this Warrant,
and this Warrant shall be exercisable for the same securities, cash, and
property as would be payable for the Shares issuable upon exercise of the
unexercised portion of this Warrant as if such Shares were outstanding on the
record date for the Acquisition and subsequent closing. The Warrant Price shall
be adjusted accordingly, provided that, if pursuant to such Acquisition, the
entire outstanding class of the Shares issuable upon exercise of the unexercised
portion of this Warrant are exchanged and a total consideration payable to the
holders of such class of Shares consists entirely of cash or publicly traded
securities or any combination thereof, then this Warrant shall expire upon
closing of such Acquisition.

                1.7.3. Purchase Right. Notwithstanding the foregoing, at the
election of Holder, the Company shall purchase the unexercised portion of this
Warrant for cash upon the closing of any Acquisition for an amount equal to (a)
the fair market value of any consideration that would have been received by
Holder in consideration of the Shares had Holder exercised the unexercised
portion of this Warrant immediately before the record date for determining the
shareholders entitled to participate in the proceeds of the Acquisition, less
(b) the aggregate Warrant Price of the Shares, but in no event less than zero.

ARTICLE 2. ADJUSTMENTS TO THE SHARES.

        2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a
dividend on its common stock (or the Shares if the Shares are securities other
than common stock) payable in common stock, or other securities, subdivides the
outstanding common stock into a greater amount of common stock, or, if the
Shares are securities other than common stock, subdivides the Shares in a
transaction that increases the amount of common stock into which the Shares are
convertible, then upon exercise of this Warrant, for each Share acquired, Holder
shall receive, without cost to Holder, the total number and kind of securities
to which Holder would have been entitled had Holder owned the Shares of record
as of the date the dividend or subdivision occurred.

        2.2 Reclassification, Exchange or Substitution. Upon any
reclassification, exchange, substitution, or other event that results in a
change of the number and/or class of the securities issuable upon exercise or
conversion of this Warrant, Holder shall be entitled to receive, upon exercise
or conversion of this Warrant, the number and kind of securities and property
that Holder would have received for the Shares if this Warrant had been
exercised immediately before such reclassification, exchange, substitution, or
other event. Such an event shall include any automatic conversion of the
outstanding or issuable securities of the Company of the same class or series as
the Shares to common stock pursuant to the terms of the Company's Certificate of
Incorporation upon the closing of a registered

                                       2
<PAGE>   30

public offering of the Company's common stock. The Company or its successor
shall promptly issue to Holder a new Warrant for such new securities or other
property. The new Warrant shall provide for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Article
2 including, without limitation, adjustments to the Warrant Price and to the
number of securities or property issuable upon exercise of the new Warrant. The
provisions of this Section 2.2 shall similarly apply to successive
reclassifications, exchanges, substitutions, or other events.

            2.3 Adjustments for Combinations, Etc. If the outstanding Shares are
combined or consolidated, by reclassification or otherwise, into a lesser number
of shares, the Warrant Price shall be proportionately increased.

            2.4 Adjustments for Diluting Issuances. The Warrant Price and the
number of Shares issuable upon exercise of this Warrant or, if the Shares are
Preferred Stock, the number of shares of common stock issuable upon conversion
of the Shares, shall be subject to adjustment, from time to time in the manner
set forth on Exhibit A in the event of Diluting Issuances (as defined on Exhibit
A).

            2.5 No Impairment. The Company shall not, by amendment of its
Certificate of Incorporation or through a reorganization, transfer of assets,
consolidation, merger, dissolution, issue, or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed under this Warrant by the Company, but
shall at all times in good faith assist in carrying out of all the provisions of
this Article 2 and in taking all such action as may be necessary or appropriate
to protect Holder's rights under this Article against impairment. If the Company
takes any action affecting the Shares or its common stock other than as
described above that adversely affects Holder's rights under this Warrant, the
Warrant Price shall be adjusted downward and the number of Shares issuable upon
exercise of this Warrant shall be adjusted upward in such a manner that the
aggregate Warrant Price of this Warrant is unchanged.

            2.6 Fractional Shares. No fractional Shares shall be issuable upon
exercise or conversion of the Warrant and the number of Shares to be issued
shall be rounded down to the nearest whole Share. If a fractional share interest
arises upon any exercise or conversion of the Warrant, the Company shall
eliminate such fractional share interest by paying Holder amount computed by
multiplying the fractional interest by the fair market value of a full Share.

            2.7 Notice as to Adjustments. When any adjustment is required to be
made in the number or kind of shares purchasable upon exercise of the Warrant,
or in the Warrant Price, the Company shall promptly notify the Holder of such
event and of the number of shares of Preferred Stock or other securities or
property thereafter purchasable upon exercise of this Warrant.

ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

            3.1 Representations and Warranties. The Company hereby represents
and warrants to the Holder as follows:

                All Shares which may be issued upon the exercise of the purchase
right represented by this Warrant, and all securities, if any, issuable upon
conversion of the Shares, shall, upon issuance, be duly authorized, validly
issued, fully paid and nonassessable, and free of any liens and encumbrances
except for restrictions on transfer provided for herein or under applicable
federal and state securities laws.

            3.2 Notice of Certain Events. If the Company proposes at any time
(a) to declare any dividend or distribution upon its common stock, whether in
cash, property, stock, or other securities and whether or not a regular cash
dividend; (b) to offer for subscription pro rata to the holders of any class or
series of its stock any additional shares of stock of any class or series or
other rights; (c) to effect any

                                       3
<PAGE>   31

reclassification or recapitalization of common stock; (d) to merge or
consolidate with or into any other corporation, or sell, lease, license, or
convey all or substantially all of its assets, or to liquidate, dissolve or wind
up; or (e) offer holders of registration rights the opportunity to participate
in an underwritten public offering of the company's securities for cash, then,
in connection with each such event, the Company shall give Holder (1) at least
20 days prior written notice of the date on which a record will be taken for
such dividend, distribution, or subscription rights (and specifying the date on
which the holders of common stock will be entitled thereto) or for determining
rights to vote, if any, in respect of the matters referred to in (c) and (d)
above; (2) in the case of the matters referred to in (c) and (d) above at least
20 days prior written notice of the date when the same will take place (and
specifying the date on which the holders of common stock will be entitled to
exchange their common stock for securities or other property deliverable upon
the occurrence of such event); and (3) in the case of the matter referred to in
(e) above, the same notice as is given to the holders of such registration
rights.

            3.3 Information Rights. So long as the Holder holds this Warrant
and/or any of the Shares, the Company shall deliver to the Holder (a) promptly
after mailing, copies of all notices or other written communications to the
shareholders of the Company, (b) within ninety (90) days after the end of each
fiscal year of the Company, the annual audited financial statements of the
Company certified by independent public accountants of recognized standing and
(c) such other financial statements required under and in accordance with any
loan documents between Holder and the Company (or if there are no such
requirements [or if the subject loan(s) no longer are outstanding]), then within
forty-five (45) days after the end of each of the first three quarters of each
fiscal year, the Company's quarterly, unaudited financial statements.

            3.4 Registration Under Securities Act of 1933, as amended. The
Company agrees that the Shares or, if the Shares are convertible into common
stock of the Company, such common stock, shall be subject to the registration
rights set forth on Exhibit B, if attached.

ARTICLE 4. MISCELLANEOUS.

            4.1 Term; Notice of Expiration. This warrant shall terminate upon
the earliest occurrence of any of the following events: (i) five (5) years from
the date of this Warrant; (ii) the closing of an initial public offering ("IPO")
in which the Company's stock is sold for at least 3 times the Initial Exercise
Price; or (iii) the closing of an Acquisition pursuant to Section 1.7, provided,
however, Company agrees to give Holder written notice of Holder's right to
exercise this Warrant in the form attached as Appendix 2 not more than 90 days
and not less than 30 days before the events described in subsections' (i), (ii),
or (iii). If the notice is not so given, the expiration date shall automatically
be extended until 30 days after the date the Company delivers the notice to
Holder.

            4.2 Legends. This Warrant and the Shares (and the securities
issuable, directly or indirectly, upon conversion of the Shares, if any) shall
be imprinted with a legend in substantially the following form:

        THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
        AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED
        WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO
        RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
        CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

            4.3 Compliance with Securities Laws on Transfer. This Warrant and
the Shares issuable upon exercise this Warrant (and the securities issuable,
directly or indirectly, upon conversion of the Shares, if any) may not be
transferred or assigned in whole or in part without compliance with applicable
federal and state securities laws by the transferor and the transferee
(including, without

                                       4
<PAGE>   32

limitation, the delivery of investment representation letters and legal opinions
reasonably satisfactory to the Company, as reasonably requested by the Company).
The Company shall not require Holder to provide an opinion of counsel if the
transfer is to an affiliate of Holder or if there is no material question as to
the availability of current information as referenced in Rule 144(c), Holder
represents that it has complied with Rule 144(d) and (e) in reasonable detail,
the selling broker represents that it has complied with Rule 144(f), and the
Company is provided with a copy of Holder s notice of proposed sale.

            4.4 Transfer Procedure. Subject to the provisions of Section 4.3
Holder may transfer all or part of this Warrant or the Shares issuable upon
exercise of this Warrant (or the securities issuable, directly or indirectly,
upon conversion of the Shares, if any) at any time to Silicon Valley Bancshares
or The Silicon Valley Bank Foundation, or to any affiliate of Holder, or, to any
other transferree by giving the Company notice of the portion of the Warrant
being transferred setting forth the name, address and taxpayer identification
number of the transferee and surrendering this Warrant to the Company for
reissuance to the transferee(s) (and Holder if applicable). Unless the Company
is filing financial information with the SEC pursuant to the Securities Exchange
Act of 1934, the Company shall have the right to refuse to transfer any portion
of this Warrant to any person who directly competes with the Company.

            4.5 Notices. All notices and other communications from the Company
to the Holder, or vice versa, shall be deemed delivered and effective when given
personally or mailed by first-class registered or certified mail, postage
prepaid, at such address as may have been furnished to the Company or the
Holder, as the case may be, in writing by the Company or such holder from time
to time. All notices to be provided under this Warrant shall be send to the
following address:

                      Silicon Valley Bank
                      Attn: Treasury Department
                      3003 Tasman Drive
                      Santa Clara, CA  95054

            4.6 Waiver. This Warrant and any term hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party
against which enforcement of such change, waiver, discharge or termination is
sought.

            4.7 Attorneys Fees. In the event of any dispute between the parties
concerning the terms and provisions of this Warrant, the party prevailing in
such dispute shall be entitled to collect from the other party all costs
incurred in such dispute, including reasonable attorneys' fees.

            4.8 Governing Law. This Warrant shall be governed by and construed
in accordance with the laws of the State of California, without giving effect to
its principles regarding conflicts of law.

                                       5
<PAGE>   33

                                      "COMPANY"

                                      ANDA NETWORKS, INC.

                                      By:    ___________________________________

                                      Name:  ___________________________________
                                             (Print)
                                      Title: Chairman of the Board, President or
                                             Vice President

                                      By:    ___________________________________

                                      Name:  ___________________________________
                                             (Print)
                                      Title: Chief Financial Officer, Secretary,
                                             Assistant Treasurer or Assistant
                                             Secretary

                                       6
<PAGE>   34

                                   APPENDIX 1

                               NOTICE OF EXERCISE

        1. The undersigned hereby elects to purchase shares of the
Common/Preferred Series ___ [Strike one] Stock of ANDA NETWORKS, INC. pursuant
to the terms of the attached Warrant, and tenders herewith payment of the
purchase price of such shares in full.

        1. The undersigned hereby elects to convert the attached Warrant into
Shares/cash [strike one] in the manner specified in the Warrant. This conversion
is exercised with respect to _____________________ of the Shares covered by the
Warrant.

        [Strike paragraph that does not apply.]

        2. Please issue a certificate or certificates representing said shares
in the name of the undersigned or in such other name as is specified below:

                      ___________________________________________
                             (Name)

                      ___________________________________________

                      ___________________________________________
                             (Address)

        3. The undersigned represents it is acquiring the shares solely for its
own account and not as a nominee for any other party and not with a view toward
the resale or distribution thereof except in compliance with applicable
securities laws.

                                            ____________________________________
                                                     (Signature)

____________________
      (Date)

<PAGE>   35

                                   APPENDIX 2

                     Notice that Warrant Is About to Expire

                              ______________, ____

(Name of Holder)

(Address of Holder)

Attn: Chief Financial Officer

Dear: ______________________

        This is to advise you that the Warrant issued to you described below
will expire on _________________________, 19  .

        Issuer:

        Issue Date:

        Class of Security Issuable:

        Exercise Price per Share:

        Number of Shares Issuable:

        Procedure for Exercise:

        Please contact [name of contact person at (phone number)] with any
questions you may have concerning exercise of the Warrant. This is your only
notice of pending expiration.

                                           _____________________________________
                                           (Name of Issuer)

                                           By:
                                           _____________________________________

                                           Its:
                                           _____________________________________

<PAGE>   36

                                    EXHIBIT A

                            Anti-Dilution Provisions
      (For Preferred Stock Warrants With Existing Anti-Dilution Protection)

        In the event of the issuance (a "Diluting Issuance") by the Company,
after the Issue Date of the Warrant, of securities at a price per share less
than the Warrant Price, then the number of shares of common stock issuable upon
conversion of the Shares shall be adjusted in accordance with those provisions
(the "Provisions") of the Company's Articles (Certificate) of Incorporation
which apply to Diluting Issuances.

        The Company agrees that no amendments will be made to the Provisions, as
in effect on the Issue Date which would have an adverse impact on the Holder as
compared to other holders of Series B Preferred Stock without the consent of the
Holder.

        Under no circumstances shall the aggregate Warrant Price payable by the
Holder upon exercise of the Warrant increase as a result of any adjustment
arising from a Diluting Issuance.

<PAGE>   37

                                    EXHIBIT B

                               Registration Rights

        The Shares (if common stock), or the common stock issuable upon
conversion of the Shares, shall be deemed "registrable securities" or otherwise
entitled to "piggy back" registration rights in accordance with the terms of the
following agreement (the "Agreement") between the Company and its investor(s):

                      Investors' Rights Agreement between the Company and the
                      Investors listed on Schedule "A" thereto, dated September
                      30, 1998.

        The Company agrees that no amendments will be made to the Agreement
which would have an adverse impact on Holder's registration rights thereunder as
compared to other holders of Series B Preferred Stock without the consent of
Holder. By acceptance of the Warrant to which this Exhibit B is attached, Holder
shall be deemed to be a party to the Agreement, unless Holder otherwise elects
not to become or to cease being a party thereto.

        If no Agreement exists, then the Company and the Holder shall enter into
Holder's standard form of Registration Rights Agreement as in effect on the
Issue Date of the Warrant.<PAGE>   1
                                                                   EXHIBIT 10.14

                           LOAN MODIFICATION AGREEMENT

        This Loan Modification Agreement is entered into as of July 19, 1999, by
and between Anda Networks, Inc. ("Borrower") and Silicon Valley Bank ("Bank").

1.      DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may
be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among
other documents, a Loan and Security Agreement, dated February 18, 1999, as may
be amended from time to time, (the "Loan Agreement"). The Loan Agreement
provided for, among other things, a Committed Revolving Line in the original
principal amount of One Million Dollars ($1,000,000), a Committed Bridge Loan in
the original amount of Seven Hundred Fifty Thousand Dollars ($750,000) and a
Committed Equipment Line in the original amount of Two Hundred Fifty Thousand
Dollars ($250,000). Defined terms used but not otherwise defined herein shall
have the same meanings as in the Loan Agreement.

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

2.      DESCRIPTION OF COLLATERAL AND GUARANTIES. Repayment of the Indebtedness
is secured by the Collateral as described in the Loan Agreement.

Hereinafter, the above-described security documents and guaranties, together
with all other documents securing repayment of the Indebtedness shall be
referred to as 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 TERMS.

        A.     Modification(s) to Loan Agreement

               1.     Section 2.1.1 entitled "Committed Bridge Loan" and all the
                      references thereto, are hereby deleted in their entirety
                      and replaced by the words "Intentionally Left Blank."

               2.     Section 2.1.2 Entitled "Equipment Advance" is hereby
                      amended in its entirety to read as follows:

                      2.1.2  EQUIPMENT FACILITY #1.

                      (a) Through December 3, 1999 (the "Equipment Availability
                      End Date"), Bank will make advances ("Equipment Advance
                      #1" and, collectively, "Equipment Advances #1") not
                      exceeding Committed Equipment Line #1. The Equipment
                      Advances #1 may only be used to finance Equipment,
                      including computer equipment, office equipment, lab
                      equipment, test equipment and furniture purchased on or
                      after 120 days before the date of this Agreement and may
                      not exceed 100% of the equipment invoice. Software and
                      used equipment may constitute up to 25% of the aggregate
                      Equipment Advances #1.

                      (b) Except as specified in Section 2.3 (a), interest
                      accrues from the date of each Equipment Advance #1, on the
                      outstanding principal balance, at a per annum rate of 0.5
                      of one percentage point above the Prime Rate and is
                      payable monthly until the Equipment Availability End Date
                      occurs. Each Equipment Advances #1 is payable in 36 equal
                      monthly installments of principal, plus accrued interest,
                      beginning on the last day of each month following the
                      Equipment Advance #1 and ending on 36th month following
                      such Equipment Advance #1 (the "Equipment

<PAGE>   2

                      Maturity Date #1"). Equipment Advances #1 when repaid may
                      not be reborrowed.

                      (c) To obtain an Equipment Advance #1, Borrower must
                      notify Bank (the notice is irrevocable) by facsimile no
                      later than 3:00 p.m. Pacific time 1 Business Day before
                      the day on which the Equipment Advance #1 is to be made.
                      The notice in the form of Exhibit B (Payment/Advance Form)
                      must be signed by a Responsible Officer or designee and
                      include a copy of the invoice for the Equipment being
                      financed.

               3.     Section 2.1.4 entitled "Equipment Facility #2" is hereby
                      incorporated into the Loan Agreement to read as follows:

                      2.1.4 EQUIPMENT FACILITY #2.

                      (a) Subject to the terms and conditions of this Agreement,
                      Bank agrees to lend to Borrower, from time to time prior
                      to the Commitment Termination Date, equipment advances
                      (each an "Equipment Advance #2" and collectively the
                      "Equipment Advances #2") in an aggregate amount not to
                      exceed the Committed Equipment Line #2. When repaid, the
                      Equipment Advances #2 may not be re-borrowed. The proceeds
                      of the Equipment Advances #2 will be used solely to
                      reimburse Borrower for the purchase of Eligible Equipment.
                      Each Equipment Advance #2 shall be considered a promissory
                      note evidencing the amounts due hereunder for all
                      purposes. Bank's obligation to lend hereunder shall
                      terminate on the earlier of (i) the occurrence and
                      continuance of an Event of Default, or (ii) the Commitment
                      Termination Date. For purposes of this Section, the
                      minimum amount of each Equipment Advance #2 is $100,000
                      and the maximum number of Equipment Advances #2 that will
                      be made is 15.

                      (b) To obtain an Equipment Advance #2, Borrower will
                      deliver to Bank a completed supplement in substantially
                      the form attached as Exhibit E ("Loan Supplement"), and
                      such additional information as Bank may request at least
                      five (5) Business Days before the proposed funding date
                      (the "Funding Date"). On each Funding Date, Bank will
                      specify in the Loan Supplement for each Equipment Advance
                      #2, the Basic Rate, the Loan Factor, and the Payment
                      Dates. If Borrower satisfies the conditions of each
                      Equipment Advance #2 specified from time to time by Bank,
                      Bank will disburse such Equipment Advance #2 by internal
                      transfer to Borrower's deposit account with Bank. Each
                      Equipment Advance #2 may not exceed 100% of the Original
                      Stated Cost.

                      (c) Bank's obligation to lend the undisbursed portion of
                      the Committed Equipment Line will terminate if, in Bank's
                      sole discretion, there has been a material adverse change
                      in the general affairs, management, results of operation,
                      condition (financial or otherwise) or the prospects of
                      Borrower, whether or not arising from transactions in the
                      ordinary course of business, or there has been any
                      material adverse deviation by Borrower from the most
                      recent business plan of Borrower presented to and accepted
                      by Bank prior to the execution of this Agreement.

                      (d) Principal and Interest Payments On Payment Dates.
                      Borrower will repay the Equipment Advances #2 on the terms
                      provided in the Loan Supplement. Borrower will make
                      payments monthly in advance of principal and accrued

                                       2
<PAGE>   3

                      interest for each Equipment Advance #2 (collectively,
                      "Scheduled Payments"), on the first Business Day of the
                      month following the Funding Date (or commencing on the
                      Funding Date if the Funding Date is the first Business Day
                      of the month) with respect to such Equipment Advance #2
                      and continuing thereafter during the Repayment Period on
                      the first Business Day of each calendar month (each a
                      "Payment Date"), in an amount equal to the Loan Factor
                      multiplied by the Loan Amount for such Equipment Advance
                      #2 as of such Payment Date. All unpaid principal and
                      accrued interest is due and payable in full on the last
                      Payment Date with respect to such Equipment Advance #2.
                      Payments received after 12:00 noon Pacific time are
                      considered received at the opening of business on the next
                      Business Day. An Equipment Advance #2 may only be prepaid
                      in accordance with Sections 2.1.4h and 2.1.4j.

                      (e) Interest Rate. Borrower will pay interest on the
                      unpaid principal amount of each Equipment Advance #2 from
                      the first Payment Date after the Funding Date of such
                      Equipment Advance #2 until the Equipment Advance #2 has
                      been paid in full, at the per annum rate of interest equal
                      to the Basic Rate determined by Bank as of the Funding
                      Date for each Equipment Advance #2 in accordance with the
                      definition of the Basic Rate. Any amounts outstanding
                      during the continuance of an Event of Default shall bear
                      interest at a per annum rate equal to the Basic Rate plus
                      five percent (5%). If any change in the law increases
                      Bank's expenses or decreases its return from the Equipment
                      Advances #2, Borrower will pay Bank upon request the
                      amount of such increase or decrease.

                      (f) Final Payment. On the Maturity Date with respect to
                      each Equipment Advance #2, Borrower will pay, in addition
                      to the unpaid principal and accrued interest and all other
                      amounts due on such date with respect to such Equipment
                      Advance #2, an amount equal to the Final Payment.

                      (g) Prepayment Upon an Event of Loss. If any Financed
                      Equipment is subject to an Event of Loss and Borrower is
                      required to or elects to prepay the Equipment Advance #2
                      with respect to such Financed Equipment pursuant to
                      Section 6.9 then such Equipment Advance #2 shall be
                      prepaid to the extent and in the manner provided in such
                      section.

                      (h) Mandatory Prepayment Upon an Acceleration. If the
                      Equipment Advances #2 are accelerated following the
                      occurrence of an Event of Default or otherwise (other than
                      following an Event of Loss), then Borrower will
                      immediately pay to Bank (i) all unpaid Scheduled Payments
                      with respect to each Equipment Advance #2 due prior to the
                      date of prepayment, (ii) all accrued unpaid interest,
                      including the default rate of interest, to the date of the
                      prepayment, (iii) the Final Payment and (iv) all other
                      sums, if any, that shall have become due and payable with
                      respect to any Equipment Advance #2.

                      (i) Permitted Prepayment of Loans. Borrower shall have the
                      option to prepay all, but not less than all, of the
                      Equipment Advances #2 advanced by Bank under this
                      Agreement, provided Borrower (i) provides written notice
                      to Bank of its election to exercise to prepay the
                      Equipment Advances #2 at least thirty (30) days prior to
                      such prepayment, and (ii) pays, on the date of the
                      prepayment (A) all outstanding principal; (B) all unpaid
                      accrued interest to the date of the prepayment; and (C)
                      the Final Payment

                                       3
<PAGE>   4

               4.     Subsection (a) of Section 2.3 entitled "Interest Rate,
                      Payments" is hereby amended to read as follows:

                      (a) Interest Rate. (i) Equipment Advances #1 accrue
                      interest on the outstanding principal balance as specified
                      in Section 2.1.2; (ii) Equipment Advances #2 accrue
                      interest on the outstanding principal balance as specified
                      in Section 2.1.4; and (iii) Advances accrue interest on
                      the outstanding principal balance at a per annum rate
                      equal to the Prime Rate. After an Event of Default,
                      Obligations accrue interest at 5 percentage points above
                      the rate effective immediately before the Event of
                      Default. The interest rate increases or decreases when the
                      Prime Rate changes. Interest is computed on a 360 day year
                      for the actual number of days elapsed.

               5.     Section 3.2 entitled "Conditions Precedent to Initial
                      Advance under the Committed Revolving Line" is hereby
                      amended to read as follows:

                      Bank's obligation to make the initial Advance under the
                      Committed Revolving Line is subject to the conditions
                      precedent that:

                      (a) Borrower's first request to activate the Committed
                      Revolving Line must be prior to September 25, 1999;

                      (b) Borrower has provided to Bank current borrowing base
                      certificate;

                      (c) Bank has completed an audit of Borrower's Accounts,
                      with results satisfactory to Bank; and

                      (d) Borrower's payment of an activation fee of $3,500
                      (which will include the initial Accounts audit fee).

               6.     Subsection (d) is hereby incorporated into Section 6.2
                      entitled "Financial Statements, Reports, Certificates," to
                      read as follows:

                      (d) Upon initial Advance under the Committed Revolving
                      Line and within 30 days after the last day of each
                      quarter, Borrower will deliver to Bank a Compliance
                      Certificate signed by a Responsible Officer in the form of
                      Exhibit D.

               7.     Section 6.8 entitled "Financial Covenants" is hereby
                      incorporated into the Loan Agreement to read as follows:

                      Upon initial Advance under the Committed Revolving Line,
                      Borrower will maintain as of the last day of each quarter:

                      QUICK RATIO. A ratio of Quick Assets to Current
                      Liabilities of at least 1.00 to 1.0.

               8.     Section 6.9 entitled "Loss; Destruction; or Damage" is
                      hereby incorporated into the Loan Agreement to read as
                      follows:

                             Borrower will bear the risk of the Financed
                      Equipment being lost, stolen, destroyed, or damaged. If
                      during the term of this Agreement any item of Financed
                      Equipment becomes obsolete or is lost, stolen, destroyed,
                      damaged beyond repair, rendered permanently unfit for use,
                      or seized by a governmental

                                       4
<PAGE>   5

                      authority for any reason for a period equal to at least
                      the remainder of the term of this Agreement (an "Event of
                      Loss"), then in each case, Borrower:

                      (a) prior to the occurrence of an Event of Default, at
                      Borrower's option, will (i) pay to Bank on account of the
                      Obligations all accrued interest to the date of the
                      prepayment, plus all outstanding principal, plus the Final
                      Payment; or (ii) repair or replace any Financed Equipment
                      subject to an Event of Loss provided the repaired or
                      replaced Financed Equipment is of equal or like value to
                      the Financed Equipment subject to an Event of Loss and
                      provided further that Bank has a first priority perfected
                      security interest in such repaired or replaced Financed
                      Equipment.

                      (b) during the continuance of an Event of Default, on or
                      before the Payment Date after such Event of Loss for each
                      such item of Financed Equipment subject to such Event of
                      Loss, Borrower will, at Bank's option, pay to Bank an
                      amount equal to the sum of: (i) all accrued and unpaid
                      Scheduled Payments (with respect to such Equipment Advance
                      related to the Event of Loss) due prior to the next such
                      Payment Date, (ii) all Regularly Scheduled Payments
                      (including principal and interest), (iii) the Final
                      Payment plus (iv) all other sums, if any, that shall have
                      become due and payable, including interest at the Default
                      Rate with respect to any past due amounts.

                      (c) On the date of receipt by Bank of the amount specified
                      above with respect to each such item of Financed Equipment
                      subject to an Event of Loss, this Agreement shall
                      terminate as to such Financed Equipment. If any proceeds
                      of insurance or awards received from governmental
                      authorities are in excess of the amount owed under this
                      Section, Bank shall promptly remit to Borrower the amount
                      in excess of the amount owed to Bank.

               9.     The following defined terms are hereby amended and/or
                      incorporated into Section 13.1 entitled "Definitions," to
                      read as follows:

                      "BASIC RATE" is, as of the Funding Date, the per annum
                      rate of interest (based on a year of 360 days) equal to
                      the sum of (a) the U.S. Treasury note yield to maturity
                      for a term equal to the Treasury Note Maturity as quoted
                      in The Wall Street Journal on the day the Loan Supplement
                      is prepared, plus (b) the Loan Margin.

                      "COMMITTED EQUIPMENT LINE #1" is a Credit Extension of up
                      to $750,000.

                      "COMMITTED EQUIPMENT LINE #2" is a Credit Extension of up
                      to $750,000.

                      "COMMITMENT TERMINATION DATE" is March 7, 2000.

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

                      "ELIGIBLE EQUIPMENT" is test and laboratory equipment,
                      test equipment, and, subject to the limitations set forth
                      below, Other Equipment that complies with all of
                      Borrower's representations and warranties to Bank and
                      which is acceptable to Bank in all respects. All Equipment
                      financed with the proceeds of Equipment Advances may be
                      new or used.

                                       5
<PAGE>   6

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

                      "EQUIPMENT ADVANCE #1" is defined in Section 2.1.2.

                      "EQUIPMENT ADVANCE #2" is defined in Section 2.1.4.

                      "EQUIPMENT AVAILABILITY END DATE" is defined in Section
                      2.1.2.

                      "FINAL PAYMENT" is a payment (in addition to and not a
                      substitution for the regular monthly payments of principal
                      plus accrued interest) due on the Maturity Date for such
                      Equipment Advance equal to the Loan Amount for such
                      Equipment Advance at such time multiplied by the Final
                      Payment Percentage.

                      "FINAL PAYMENT PERCENTAGE" is, for each Equipment Advance
                      #2, 5%.

                      "FINANCED EQUIPMENT" is defined in the Loan Supplement.

                      "FUNDING DATE" is any date on which an Equipment Advance
                      is made to or on account of Borrower.

                      "LOAN AMOUNT" is the aggregate amount of the Equipment
                      Advance #2.

                      "LOAN FACTOR" is the percentage which results from
                      amortizing the Equipment Advance over the Repayment
                      Period, using the Basic Rate as the interest rate.

                      "LOAN MARGIN" is 375 basis points.

                      "LOAN SUPPLEMENT" is attached as Exhibit E.

                      "MATURITY DATE" is defined in each Loan Supplement.

                      "ORIGINAL STATED COST" is (i), the original cost to the
                      Borrower of the item of new Equipment net of any and all
                      freight, installation, tax or (ii) the fair market value
                      assigned to such item of used Equipment by mutual
                      agreement of Borrower and Bank at the time of making of
                      the Equipment Advance.

                      "OTHER EQUIPMENT" is used Equipment and software. Unless
                      otherwise agreed to by Bank, not more than 25% of the
                      Equipment financed with the proceeds of each Equipment
                      Advance shall consist of Other Equipment.

                      "QUICK ASSETS" is, on any date, the Borrower's
                      consolidated, unrestricted cash, cash equivalents, net
                      billed accounts receivable and investments with maturities
                      of less than 12 months determined according to GAAP.

                      "REPAYMENT PERIOD" as to the Equipment Advances #2, is 30
                      months.

                      "TREASURY NOTE MATURITY" is 36 months.

                                       6
<PAGE>   7

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

5.      PAYMENT OF LOAN FEE. Borrower shall pay to Bank a fee in the amount of
Five Hundred Dollars ($500) (the "Loan Fee") plus all out-of-pocket expenses.

6.      NO DEFENSES OF BORROWER. Borrower (and each guarantor and pledgor
signing below) agrees that, as of the date hereof, it has no defenses against
the obligations to pay any amounts under the Indebtedness.

7.      CONTINUING VALIDITY. Borrower (and each guarantor and pledgor signing
below) understands and agrees that in modifying the existing Indebtedness, Bank
is relying upon Borrower's representations, warranties, and agreements, as set
forth in the Existing Loan Documents. 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. Bank's agreement to modifications
to the existing Indebtedness pursuant to this Loan Modification Agreement in no
way shall obligate Bank 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 Bank and Borrower to retain as liable
parties all makers and endorsers of Existing Loan Documents, unless the party is
expressly released by Bank 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.

8.      CONDITIONS. The effectiveness of this Loan Modification Agreement is
conditioned upon Borrower's payment of the Loan Fee.

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

BORROWER:                                BANK:

ANDA NETWORKS, INC.                      SILICON VALLEY BANK

By:____________________________          By:_______________________________
Name:__________________________          Name:_____________________________
Title:_________________________          Title:____________________________

                                       7
<PAGE>   8

[SILICON LOGO]

                               SILICON VALLEY BANK

                       PRO FORMA INVOICE FOR LOAN CHARGES

<TABLE>
<CAPTION>
<S>                    <C>                           <C>
BORROWER:              ANDA NETWORKS, INC.

LOAN OFFICER:          JOELLEN ADEMSKI

DATE:                  JULY 19, 1999

                       LOAN FEE                        $500.00
                       DOCUMENTATION FEE             $1,000.00
                       LEGAL FEE                       $500.00

                       TOTAL FEE DUE                 $2,000.00
                                                     =========
</TABLE>

PLEASE INDICATE THE METHOD OF PAYMENT:

        { }   A CHECK FOR THE TOTAL AMOUNT IS ATTACHED.

        { }   DEBIT DDA # __________________ FOR THE TOTAL AMOUNT.

        { }   LOAN PROCEEDS

______________________________________________
BORROWER                        (DATE)

______________________________________________
SILICON VALLEY BANK             (DATE)
ACCOUNT OFFICER'S SIGNATURE

                                       8
<PAGE>   9

                                    EXHIBIT E
                        FORM OF LOAN AGREEMENT SUPPLEMENT

                            LOAN AGREEMENT SUPPLEMENT

LOAN AGREEMENT SUPPLEMENT dated , 199 ("Supplement"), to the Loan and Security
Agreement dated as of February 18, 1999 (the "Loan Agreement) by and between the
undersigned ("Borrower"), and Silicon Valley Bank ("Bank").

Capitalized terms used herein but not otherwise defined herein are used with the
respective meanings given to such terms in the Loan Agreement.

To secure the prompt payment by Borrower of all amounts from time to time
outstanding under the Loan Agreement, and the performance by Borrower of all the
terms contained in the Loan Agreement, Borrower has granted Bank, a first
priority security interest in each item of equipment and other property
described in Annex A hereto, which equipment and other property is deemed to be
additional Financed Equipment and Collateral. The Loan Agreement is hereby
incorporated by reference herein and is hereby ratified, approved and confirmed.

Annex A (Equipment Schedule) and Annex B (Loan Terms Schedule) are attached
hereto. The proceeds of the Loan should be transferred to Borrower's account
with Bank set forth below:

               Bank Name:    Silicon Valley Bank
               Account No.:  ___________________

Borrower hereby certifies that (a) the foregoing information is true and correct
and authorizes Bank to endorse in its respective books and records, the Basic
Rate applicable to the Funding Date of the Loan contemplated in this Loan
Agreement Supplement and the principal amount set forth in the Loan Terms
Schedule; (b) the representations and warranties made by Borrower in the Loan
Agreement are true and correct on the date hereof and will be true and correct
on such Funding Date. No Event of Default has occurred and is continuing under
the Loan Agreement. This Supplement may be executed by Borrower and Bank in
separate counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute but one and the
same instrument.

This Supplement is delivered as of this day and year first above written.

SILICON VALLEY BANK                       ANDA NETWORKS, INC.

By:_________________________________      By:___________________________________
   Name:____________________________         Name:______________________________
   Title:___________________________         Title:_____________________________

Annex A - Description of Financed Equipment
Annex B - Loan Terms Schedule

                                       9
<PAGE>   10

                                     Annex A

The Financed Equipment being financed with the Equipment Advance which this Loan
Agreement Supplement is being executed is listed below. Upon the funding of such
Equipment Advance, this schedule automatically shall be deemed to be a part of
the Collateral.

                                       10
<PAGE>   11

                                     Annex B

                          LOAN TERMS SCHEDULE #________

Loan Funding Date:_____________ , 199_

Original Loan Amount: $________

Basic Rate: ___________%

Loan Factor: __________%

Scheduled Payment Dates and Amounts*:

     One (1) payment of $______ due _____________
     _____ payment of $______ due monthly in advance from _____ through _______.
     One (1) payment of $______ due _____________

Maturity Date:_________

Final Payment: An additional amount equal to the Final Payment Percentage
               multiplied by the Loan Amount then in effect, shall be paid on
               the Maturity Date with respect to such Loan.

Stipulated Loss Value: The Loan Amount multiplied by the applicable Stipulated
Loss Value Percentage set forth below.

Payment No.           Payment Date            Stipulated Loan Value Percentage**

 1
 2
 3
 4
 ...
30...

*/  The amount of each Scheduled Payment will change as the Loan Amount changes.

**/ Each Stipulated Loss Value amount assumes payment of all Scheduled Payments
due on or before the indicated Payment Date.

                                       11

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