Document:

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                                                                   EXHIBIT 10.18

                             LIMITED FRAUD GUARANTY

         This Limited Guaranty is executed as of August 11, 2003, by James. H.
Long ("Guarantor") in favor of Textron Financial Corporation ("Textron") and
each of Textron's affiliates (individually and collectively, "Textron"). For
purposes of this Limited Guaranty, any party that controls Textron, is
controlled by Textron, or is under common control with Textron, shall be deemed
an affiliate of Textron.

                                    RECITALS

         A.       Whereas, Textron has entered into one or more loan agreements
(as amended, replaced, substituted or supplemented from time to time, the "Loan
Agreements") with:

                  I-SECTOR CORPORATION ("I-Sector"), together with
                  its following subsidiary companies:
                  STRATASOFT, INC. ("Stratasoft"),
                  INTERNETWORK EXPERTS, INC. ("INX"),
                  VALERENT, INC., formerly ALLSTAR SOLUTIONS, INC. ("Valerent"),

         (I-Sector, Stratasoft, INX and Valerent are referred to herein,
individually, as an "Obligor" and, collectively, as the "Obligors"); and

         B.       Whereas, Textron is agreeable to increasing the availability
in respect of the existing Loan Agreements by an amount that has been agreed to
among Textron and the Obligors on the condition that Guarantor shall execute and
deliver this Guaranty to Textron.

                                    AGREEMENT

         In consideration of Textron's increasing the availability in respect of
the Loan Agreements, as set forth above (which availability shall in all cases
continue to be subject to the terms and conditions of the Loan Agreements),
Guarantor hereby agrees as follows:

1.       Limited Nature of Guaranty. In the event that Textron shall at any time
determine, in good faith, that one or more of the Obligors and/or the Guarantor
shall have committed a fraud upon Textron under or in connection with the Loan
Agreements or this Limited Guaranty (including, without limitation, in
connection with the obtaining and/or repayment of loans and credit extended
under the Loan Agreements) or shall have made a misrepresentation to Textron of
a material fact or circumstance under or in connection with the Loan Agreements
or this Limited Guaranty (including, without limitation, in connection with the
obtaining and/or repayment of loans and credit extended under the Loan
Agreements), which has or could have, in the reasonable opinion of Textron, a
material adverse effect on (a) the timely payment of the loans and other credit
and amounts payable under the Loan Agreements, (b) the collateral securing such
loans, credits and other amounts, (c) the business and/or prospects of any of
the Obligors, (d) the Guarantor or (e) this Limited Guaranty (a "Triggering
Determination"), Guarantor shall be liable for all amounts payable and all
obligations to be performed by Obligors under the Loan Agreements as set forth
therein and herein ("Guarantor Liability"). For the avoidance of doubt, Textron
shall not assert any Guarantor Liability against Guarantor hereunder unless and
until a Triggering Determination shall have been made and communicated in
writing to Guarantor.

2.       Limited Scope of Guaranty. Subject to the terms and conditions of
Section 1 above, Guarantor guarantees to Textron the prompt payment and/or
performance of all indebtedness, obligations and liabilities of Obligors at any
time owing to Textron, whether direct or indirect, matured or unmatured,

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primary or secondary, certain or contingent or acquired or created by Textron
(individually, a "Guaranteed Obligation" and, collectively, the "Guaranteed
Obligations"). This Limited Guaranty is a guaranty of payment. Subject to the
terms and conditions of Section 1 above, Guarantor guarantees to Textron the
punctual and faithful performance by Obligors of each and every Guaranteed
Obligation. Without limiting the generality of the foregoing, in the event of
Guarantor Liability, as referred to in Section 1 above, if any Obligor defaults
in the payment or performance of any Guaranteed Obligation, if there exists any
event or condition which, with notice and/or the passage of time, would
constitute a default under any Guaranteed Obligation (including, without
limitation, any cross-defaults by or among the Obligors), or if there is a
liquidation, bankruptcy, assignment for the benefit of creditors or similar
proceeding affecting the status, existence, assets or obligations of any
Obligor, Guarantor shall pay directly to Textron the sums which the Obligors are
obligated to pay to Textron, whether by acceleration or otherwise, and promptly
perform all other Guaranteed Obligations. In the event of Guarantor Liability,
as referred to in Section 1 above, and if Textron is required to return any
payment made to Textron by or on behalf of any Obligor, whether as a result of
such Obligor's bankruptcy, reorganization or otherwise, Guarantor acknowledges
that this Limited Guaranty covers all such amounts, notwithstanding that the
original of this Guaranty may have been returned to Guarantor and/or otherwise
canceled.

3.       Continuing Nature of Guaranty. This Limited Guaranty is a continuing
guarantee and shall apply without regard to the form or amount of the Guaranteed
Obligations in existence at any time with the following exceptions:

                  (a) In the event that Guarantor ceases to function as both (i)
         the Chairman of the Board of Directors and the Chief Executive Officer
         of I-Sector and (ii) the majority shareholder of I-Sector ("Loss Of
         Control") and Textron shall have approved of such, in writing prior to
         the occurrence of the Loss Of Control, which approval shall not be
         unreasonably withheld, this Limited Guarantee shall apply only to
         Textron debt obligations of the Obligors that were created from
         transactions between Textron and the Obligors dated prior to the date
         of Loss Of Control, and once all debt obligations that were created
         prior to the Loss Of Control have been fully, finally and indefeasibly
         repaid to Textron this Limited Guarantee shall terminate without any
         further action by Guarantor or Textron and all obligations hereunder
         shall be deemed satisfied in their entirety.

                  (b) In the event that Guarantor notifies Textron, in writing,
         that Guarantor will no longer prospectively guarantee the performance
         of the terms and conditions, including repayment, of monies loaned or
         financial accommodations provided to any one of the individual Obligors
         (up to and including all of the Obligors) (the "Terminated Obligor")
         pursuant to the Loan Agreements ("Termination Notice"), the Guarantor
         Liability shall be limited to financing extended by Textron to such
         Terminated Obligor through the date of receipt by Textron of such
         Termination Notice. If Textron continues to provide financing
         accommodations, credit, loans or other financing services to any
         Terminated Obligor after receipt of such Termination Notice, this
         Limited Guarantee shall apply only to Textron debt obligations of the
         Terminated Obligor that were created from transactions between Textron
         and such Terminated Obligor prior to the date of receipt by Textron of
         such Termination Notice and any credit extended by Textron to the
         Terminated Obligor after the date of receipt by Textron of such
         Termination Notice shall not be considered a Guaranteed Obligation. The
         Guarantor and the Obligors acknowledge and agree that the delivery of a
         Termination Notice may result, in the sole discretion of Textron, in
         the immediate cessation of all fundings and loans to the affected
         Obligor or Obligors by Textron.

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4.       Nature of Guaranty. In the event of Guarantor Liability, as referred to
in Section 1 above, the obligations of Guarantor under this Guaranty shall be
absolute and unconditional except as set forth in Section 3 above, and such
obligations shall not be reduced, diminished or discharged for any reason,
including, :

                  (a) Modifications and Indulgences. Any modification, renewal
         or alteration of any agreement, document or instrument relating to any
         Guaranteed Obligation, or any indulgence, adjustment, preference,
         extension or compromise made by Textron in favor of any Obligor or
         Guarantor.

                  (b) Condition of Obligors or Guarantor. Any insolvency,
         bankruptcy, arrangement, adjustment, composition, liquidation,
         disability, dissolution or similar proceeding affecting any Obligor or
         Guarantor; any sale, lease or other disposition of any of the assets of
         any Obligor or Guarantor; any reorganization of, or change in the
         composition of the shareholders, partners or members of, any Obligor or
         Guarantor; or any termination of, or other change in, the relationship
         between any Obligor and Guarantor.

                  (c) Invalidity of Guaranteed Obligations. The invalidity,
         illegality or unenforceability of any Guaranteed Obligation for any
         reason whatsoever, including, but not limited to: the existence of
         valid defenses, counterclaims or off-sets to any Guaranteed Obligation;
         the violation of applicable usury laws by any Guaranteed Obligation; or
         the inauthenticity of any document or instrument relating to the
         Guaranteed Obligations.

                  (d) Release of Obligors. Any complete or partial release of
         any Obligor or any other party from any Guaranteed Obligation (other
         than as set forth in Section 3 above).

                  (e) Release of Collateral; Care of Collateral; Status of
         Liens. Any release, surrender, exchange, deterioration, waste, loss or
         impairment of any collateral securing payment of any Guaranteed
         Obligation (the "Collateral"), even if due to Textron's negligence; the
         failure of Textron or any other party to exercise reasonable care in
         the preservation, protection, sale or other treatment of any of the
         Collateral; the failure of Textron to create or properly perfect any
         security interest intended to be given by any Obligor in connection
         with any Guaranteed Obligation (a "Security Interest"); the
         unenforceability of any Security Interest; the subordination of any
         Security Interest to any other lien or encumbrance; or the taking or
         accepting by Textron of any other security for, or assurance of payment
         of, any Guaranteed Obligation.

                  (f) Other Action or Inaction. Any other action or inaction on
         the part of Textron, other than a willful action or inaction, whether
         or not such action or inaction prejudices Guarantor or increases the
         likelihood that Guarantor will be required to pay or perform any
         Guaranteed Obligation pursuant to the terms hereof.

         It is the obligation of Guarantor to discharge the Guaranteed
Obligations when due, notwithstanding any occurrence, circumstance, event,
action or omission whatsoever, whether or not particularly described herein.
Guarantor is not entering into this Guaranty in reliance on the value or the
availability of any of the Collateral. Guarantor acknowledges that Guarantor may
be required to pay the Guaranteed Obligations, in full, without the assistance
or support of any other party. Guarantor has not been induced to enter into this
Guaranty on the basis that any party other than Obligors will be liable to
perform any Guaranteed Obligation or that Textron will look to any other party
to perform any Guaranteed Obligation. If this Guaranty is signed by more than
one party, the obligations of such parties are joint and several and Textron may
release, or settle with, any of such parties without affecting the

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liability of any other party to this Guaranty. To the extent that this Guaranty
is secured by property of Guarantor, Textron shall not be obligated to release
its security interest in such property until all applicable preference periods
have passed with respect to payments made to Textron by or on behalf of
Obligors.

5.       Waivers. Guarantor waives:

                  (a) Action Against Others. Any right to require Textron to:
         institute suit or exhaust remedies against Obligors or any other party
         liable for any Guaranteed Obligation; enforce Textron's rights in any
         of the Collateral or other security which is at any time given to
         secure any Guaranteed Obligation; enforce Textron's rights against any
         other guarantor of any Guaranteed Obligation; join Obligors or any
         other party liable for any Guaranteed Obligation in any action seeking
         to enforce this Guaranty; or exhaust any other remedies available to
         Textron or resort to any other means of obtaining payment or
         performance of any Guaranteed Obligation.

                  (b) Notices. Notice of the amount of credit extended by
         Textron to Obligors at any time, whether primary or secondary; notice
         of the modification or extension of any Guaranteed Obligation; notice
         of a default or other non-performance by Obligors in connection with
         any Guaranteed Obligation; notice of the transfer or disposition by
         Textron of any Guaranteed Obligation; notice of the repossession, sale
         or other disposition of any of the Collateral; notice of the acceptance
         of this Guaranty by Textron; demand and presentation for payment upon
         Obligors or any other party liable for any Guaranteed Obligation;
         protest, notice of protest and diligence of bringing suit against
         Obligors or any other party; and any other action or inaction on the
         part of Textron in connection with this Guaranty or any Guaranteed
         Obligation.

                  (c) Subrogation. Any right which Guarantor may at any time
         have against Obligors, or any other party liable for any Guaranteed
         Obligation, as the result of the performance by Guarantor of its
         obligations under this Limited Guaranty, including, but not limited to,
         contractual, statutory and common law rights of subrogation,
         reimbursement and indemnification, provided, however, upon the full,
         final payment to Textron of all of the Guaranteed Obligations by
         Guarantor hereunder, Guarantor shall, anything contained herein to the
         contrary notwithstanding, have all contractual, statutory and common
         law rights of subrogation and reimbursement against the Obligors. In
         the event that Textron has to disgorge a payment or payments made by
         the Obligors or the Guarantor for Guaranteed Obligations and, after
         giving effect to such disgorgement, there remains any Guaranteed
         Obligations owed to Textron, Guarantor shall remain liable to Textron
         for such Guaranteed Obligations and this Limited Guaranty, if
         necessary, shall be deemed reinstated with respect to such Guaranteed
         Obligations.

                  (d) Election of Remedies. All defenses Guarantor may have
         based upon any election of remedies by Textron which destroys or
         impairs Guarantor's subrogation rights or Guarantor's rights to proceed
         against Obligors or any other person for reimbursement, including,
         without limitation, any loss of rights that Guarantor may suffer by
         reason of any rights, powers or remedies of Obligors in connection with
         any anti-deficiency laws or any other laws limiting, qualifying or
         discharging indebtedness of or remedies against Obligors or any other
         party. The foregoing waivers include any requirement of law that
         Textron exhaust any security for any loan before proceeding under this
         Guaranty and any act or omission by Textron which directly or
         indirectly results in or aids the loss, limitation or impairment of the
         right to recover any deficiency from Obligors due to Textron's election
         to proceed under a power of sale set forth in any deed of trust or any
         other deed of trust, mortgage or lien on real property or due to any
         fair

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         value limitations or determinations in connection with a judicial
         foreclosure of the real property securing any loan. Without limitation
         of the foregoing, Guarantor waives all rights and defenses arising out
         of an election of remedies by a creditor, even though that election of
         remedies, such as a non-judicial foreclosure with respect to security
         for a Guaranteed Obligation, has destroyed the guarantor's rights of
         subrogation and reimbursement against the principal.

6.       Representations and Warranties. Guarantor represents and warrants to
Textron that:

                  (a) Benefit. Guarantor has received, or will receive, direct
         or indirect benefit from the creation of the Guaranteed Obligations.
         Guarantor is the, direct or indirect, beneficial owner of more than a
         majority of the outstanding shares of each of the Obligors.

                  (b) No Representation by Textron. Neither Textron nor any
         other party has made any representation, warranty or statement to
         Guarantor in order to induce Guarantor to execute this Guaranty.

                  (c) Financial Condition. As of the date hereof, and after
         giving effect to this Guaranty and the contingent nature of the
         obligations contained herein and after giving effect to any subrogation
         rights provided to Guarantor hereunder, and assuming that the Obligors'
         assets, collectively, exceed their liabilities, collectively, as of the
         date hereof, Guarantor is solvent and has assets which, when fairly
         valued, exceed its liabilities.

7.       Governing Law; Miscellaneous. THIS GUARANTY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF RHODE ISLAND, WITHOUT
REFERENCE TO APPLICABLE CONFLICT OF LAW PRINCIPLES. GUARANTOR CONSENTS TO THE
JURISDICTION AND VENUE OF RHODE ISLAND COURTS IN CONNECTION WITH TEXTRON'S
ENFORCEMENT OF ANY OF GUARANTOR'S OBLIGATIONS UNDER THIS GUARANTY. This Guaranty
shall not be deemed to create any right in any party except as provided herein
and shall inure to the benefit of, and be binding upon, the successors and
assigns of Guarantor and Textron. THIS GUARANTY CONSTITUTES THE ENTIRE AGREEMENT
OF GUARANTOR AND TEXTRON RELATIVE TO THE SUBJECT MATTER HEREOF. NO MODIFICATION
OF, OR SUPPLEMENT TO, THIS GUARANTY SHALL BIND TEXTRON UNLESS THE SAME IS IN
WRITING AND IS SIGNED BY AN AUTHORIZED OFFICER OF TEXTRON. Upon the request of
Textron, Guarantor shall deliver to Textron certified personal and/or business
financial statement(s) and such other financial information as Textron may
reasonably request. Guarantor agrees that Textron may, without the consent of,
or notice to, Guarantor, assign all or any portion of its rights hereunder to
any other party to which any Guaranteed Obligation is transferred, assigned or
negotiated. Guarantor shall be liable for all attorneys' fees and other costs
and expenses incurred by Textron in connection with Textron's enforcement of
this Guaranty.

8.       Notices. All notices required to be given hereunder shall be given by
U.S. Postal Service Certified Mail, Return Receipt requested, or by receipted
overnight delivery using any nationally recognized delivery service, or hand
delivered evidenced by a written receipt. Unless otherwise notified in writing,
notices shall be provided at the following addresses:

                  For Textron:
                      Textron Financial Corporation
                      1180 WELSH ROAD, SUITE 280
                      NORTH WALES, PA 19454
                      Attn: VICE PRESIDENT, CREDIT

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                  For Guarantor:
                     James H. Long
                     910 Alkire Lake Drive,
                     Sugar Land, Texas  77478

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NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, GUARANTOR'S LIABILITY
HEREUNDER SHALL BE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN SECTION 1
ABOVE.

         The undersigned, pursuant to due corporate or partnership authority, as
appropriate, has or have caused this Guaranty to be executed as of the date set
forth above.

                           GUARANTOR:

                           /s/ James H. Long
                           ------------------
                           James H. Long

         Agreed to And Approved By I-Sector Corporation:

           /s/ Patricia Winstead
           ----------------------
           Patricia Winstead, Secretary, Vice President and Controller

         Agreed to And Approved By Internetwork Experts, Inc.:

           /s/ Mark T. Hilz
           ------------------------
           Mark T. Hilz, President

         Agreed to And Approved By Stratasoft, Inc.:

           /s/ William R. Hennessy
           -------------------------
           William R. Hennessy, Vice President and Controller

         Agreed to And Approved By Valerent, Inc.:

           /s/ Frank Cano
           -------------------------
           Frank Cano, President

                                 ACKNOWLEDGMENT

STATE OF TEXAS
COUNTY OF HARRIS

         Before me, a Notary Public in and for said County and State or
Commonwealth, on this day personally appeared James H. Long, known to me to be
the person whose name is subscribed to the foregoing instrument, who
acknowledged that he executed said instrument as his or her free and voluntary
act and the free and voluntary act of Borrower.

         Given under my hand and Notarial Seal this _______ day of ____, 20____.

                                                     ___________________________
                                                     Notary Public

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                                                                   EXHIBIT 10.19

                           LOAN AND SECURITY AGREEMENT

Textron Financial Corporation        VALERENT, INC., INTERNETWORK EXPERTS, INC.,
                                     I-SECTOR CORPORATION, ISECOLDSUB, INC.,
                                     STRATASOFT, INC.
1180 Welsh Road, Suite 280           Exact Legal Name
North Wales, PA 19454                6401 SOUTHWEST FREEWAY
                                     Street Address
                                     Houston, TX 77074
                                     City, State, Zip Code

Gentlemen:

         1.       We are an authorized Reseller of goods manufactured and/or
distributed by various manufacturers and distributors (hereinafter called
"Manufacturer"). As such, we from time to time buy goods from Manufacturer to be
held by us as our inventory for sale by us in the normal course of our business.
We may, as more fully set forth herein, from time to time obtain loans from you
in order to finance the purchase of certain of such goods, including parts and
accessories therefor, from Manufacturer, and desire by this Agreement to set
forth in writing our understanding of our loan arrangements with you and secure
repayment of such loans and other related debts and liabilities we may have to
you, whether now existing or hereafter arising.

         2.       Upon our request from time to time, you may, at your sole
discretion and without any obligation to do so, make loans to us, under such
terms and with such conditions as you shall specify, to enable us to acquire
rights in Inventory from Manufacturers pre-approved by you for financing
programs. We understand that each such loan will be solely at your discretion,
and we expressly disclaim any right to expect otherwise, either from the course
of our dealing, our need therefore, your dealings with others, your arrangements
with Manufacturer, or otherwise. Conversely, nothing herein will prevent us from
obtaining financing from other sources, provided that you are completely
satisfied that such other financing will not jeopardize our ability to comply
with our financial obligations to you and that adequate procedures will be
implemented to absolutely assure your ability to identify your Collateral.
Accordingly, we will obtain both your written permission prior to arranging such
other financing and such acknowledgements and undertakings from our other
lenders as you may require.

         We understand that certain terms and conditions applicable to loans
obtained by us from you will be set forth in materials to be made available from
time to time to us and other Resellers, the terms of which, as revised from time
to time, being deemed incorporated herein by reference. We understand that these
materials are subject to change by you at any time and from time to time, and
expressly assume the responsibility of confirming directly with you, upon our
request for each loan, the exact terms and conditions then being stated by you,
including without limitation rate of interest and terms of repayment. In no
event will we view such materials as a commitment or other offer on your part to
lend, and we will have no right to any loan under any particular terms until
actually made and under the terms so made. We understand and agree that the full
amount of each loan will be paid to you on its due date without deduction for
any sums due from Manufacturer or any Credit Memo that may have been issued to
you, unless you have previously notified us that you have received and applied
the amount of the Credit Memo issued by the Manufacturer.

         We understand that you may, from time to time, issue advices to us.
Such advices may include, but need not be limited to, periodic or monthly
statements of our account, periodic letter advices in the nature of statements
of account, issued from time to time, and letter forms or other forms of notices
of due dates of finance plan payments and of the specific terms of loans which
we have with you. Unless we, within ten (10) days from the date of any such
advice, give you written and itemized objection to the contents of such advice,
we shall be fully bound thereby and acknowledge that the content of such advice
is true, correct, and complete, and accurately reflects our obligations to you
as of the date thereof.

         In connection with each loan requested, we will deliver to you such
other writings as you shall require, which may include notes or other
appropriate evidence of debt. Such notes or other evidence of debt, Manufacturer
invoices, and other like materials as may be revised from time to time
("Collateral Documents"), together with this Agreement, contain our entire
understanding, and we acknowledge that we will not be relying upon any prior
oral or written promises or undertakings or future oral promises between us. No
modification hereof or of the Collateral Documents will be binding upon you
unless in a writing duly executed on your behalf by an officer holding the rank
of Vice President or higher.

         We hereby authorize you to disburse the proceeds of each loan directly
to Manufacturer on our behalf. Further, we shall and hereby authorize
Manufacturer to deliver its invoice for Inventory, together with all
Certificates of Origin, directly to you. You may assume that all such invoices
so submitted are authentic and accurate and that they have been submitted on our
behalf and with our permission. Receipt by you from us or Manufacturer of an
invoice for Inventory shall be your authority to make a loan to us under terms
and conditions then being stated by you. In addition we shall and hereby
authorize the Manufacturer to issue all Credit Memos directly to you.

         We acknowledge that the term "Prime Rate", as used in the Collateral
Documents in reference to the rate of interest applicable to loans to us, will
mean the average of the Prime Rates (the base rate for corporate loans at large
U.S. money center commercial banks) quoted in the Wall Street Journal under the
caption "Money Rates", and agree that the interest rate applicable to our loans
from you will automatically change from time to time effective upon each change
in the published Prime Rate. We further agree that interest on our loans from
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you will be calculated on the basis of a 360 day year but will be chargeable for
the actual days that principal is outstanding in the then current year.

         3.       We acknowledge that our financial arrangements with you are
completely independent of our arrangements with Manufacturer, and that neither
you nor Manufacturer are an agent for or acting on behalf of the other. We are
not relying, in our understanding with you, on any statements, promises or
representations, oral or written, made by Manufacturer, whether or not
purportedly on your behalf, relating to the subject matter hereof and of our
loans with you. Although we may receive official literature, brochures and other
written materials disseminated by you through Manufacturer, we expressly assume
the risk that the materials so received are the most current, up to date
materials then authorized by you to be disseminated. None of our obligations to
you will be affected or impaired, or be subject to any defense, set-off,
counterclaim, crossclaim or recoupment, by reason of any claim which we now or
hereafter have against Manufacturer or its agents, including without limitation
any claim for breach of express or implied warranty of title, or otherwise
related to the condition of the Collateral or our dealings with Manufacturer.

         4.       As used herein, the following terms shall have the following
meaning:

                  a)       "Inventory" means all present and future Inventory,
as that term is defined in the Rhode Island Uniform Commercial Code ("Code"),
together will all parts and accessories, and all replacements, substitutions and
additions thereof or thereto.

                  b)       "Accounts" means all present and future Accounts, as
that term is defined in the Code.

                  c)       "General Intangibles" means all present and future
General Intangibles, as that term is defined in the Code, and shall include,
without limitation, all Credit Memos and other sums due from Manufacturer, all
books, records, ledgers, journals, check books, computer tapes and disks, print
outs and other information and sources of information, and all licenses,
permits, franchises, tradenames and other rights and privileges used or useful
in the conduct of our business and the sale of Inventory.

                  d)       "Equipment" means all present and future Equipment,
as that term is defined in the CODE, together with all parts and accessories,
and all replacements, substitutions and additions thereof or thereto.

                  e)       "Investment Property" means all present and future
Investment Property, as that term is defined in the CODE.

                  f)       "Proceeds" means present and future Proceeds, as that
term is defined in the CODE, and shall include, without limitation, insurance
payable by reason of loss or damage to any of the Collateral. All Proceeds
received by us will be held in trust for you until our loans are paid, and we
will promptly deliver all Proceeds to you.

                  g)       "Collateral" means, individually and collectively,
Inventory, Accounts, General Intangibles, Equipment, Investment Property and
Proceeds.

         5.       a)       In order to secure repayment to you of each loan made
by you to us the proceeds of which enable us to acquire rights in or the use of
Inventory, we hereby grant to you a purchase money security interest in such
Inventory, the Proceeds thereof and all General Intangibles related thereto, to
secure repayment of such loan. It is intended by this subparagraph (a) that only
the Inventory so acquired, with Proceeds and related General Intangibles, will
secure the loan the proceeds of which enabled us to acquire rights in or the use
of such Inventory.

                  b)       In order to secure repayment to you of all debts and
liabilities we may now or hereafter have to you under this Agreement or any
other agreement, whether such debt or liability be obtained by you by
assignment, negotiation or otherwise, and whether direct or indirect, primary or
secondary, absolute or contingent, or otherwise, including but not limited to
all loans made by you to us to finance the purchase of Inventory, we hereby
grant to you a security interest in all of our Inventory, Accounts, General
Intangibles, Equipment and Investment Property no matter how obtained by us,
whether now existing or hereafter acquired, and the Proceeds of all of the
foregoing.

                  c)       All payments made by us will be deemed to be applied
by you first to the loan (i) the proceeds of which enabled us to acquire rights
in or the use of Inventory which we have previously sold and (ii) with the
earliest due date.

         6.       We hereby represent to you that all information provided by us
to you in connection with our application for each loan from you is and will be
complete and accurate in every respect. WE WILL IMMEDIATELY NOTIFY YOU IN
WRITING OF ANY CHANGE IN ANY OF THIS INFORMATION.

         7.       We will from time to time execute and/or deliver or cause to
be executed and/or delivered to you such financing statements, amendments to
financing statements, continuation statements, documents of title,
manufacturers' certificates of origin, warehouse receipts, bills of lading,
vehicle titles, waivers, consents and such other manner of things, and take all
manner of actions, as you may from time to time request which are in your sole
opinion necessary or desirable in order to perfect, protect, maintain, continue,
realize and/or enforce your rights and security interests granted herein. This
shall include, without limitation, the written waiver by the landlord of each
location at which any Collateral is located. A carbon, photographic or other
reproduction of this Agreement shall be sufficient as a financing statement and
may be filed in any public office as a financing statement.

<PAGE>
         8.       We will maintain the Inventory in excellent, salable
condition, consistent with the highest standards in the industry, and will
comply with all applicable laws relating to our use thereof. We will provide you
or your designated representatives with access, at any time, during normal
business hours, whether announced or unannounced, to each location at which any
Collateral is located, to inspect and examine the Inventory and other Collateral
and business records, including without limitation all financial records. We
agree, at our sole cost, to keep all Inventory insured against risks covered by
standard forms of fire, theft and extended coverage and such other risks as may
be reasonably required by you and under policies issued by an insurance company
or companies and in amounts satisfactory to you. You shall be named to the
extent your interest may appear under a Lender's Loss Payable Clause in such
policy, which shall provide that the insurance cannot be canceled without at
least thirty (30) days prior written notice to you and shall insure you
notwithstanding any act or neglect on our part. At our expense, we shall furnish
you with evidence of the same in form satisfactory to you, and shall provide you
with a Certificate thereof naming you as certificate holder. We will promptly
remit to you in the form received, with all necessary endorsements, any Proceeds
of such insurance. You may make and settle claims and endorse our name on any
checks or drafts. You may apply any Proceeds of insurance which may be received
by you toward payment of any obligations or liabilities owed to you by us,
whether or not then due, in such order of application as you may determine.

                  Loss, damage or destruction of all or any of the Collateral
shall not affect or diminish our liabilities to you and we assume all
responsibility and risk for the existence, character, quality, condition, value,
and delivery of Inventory.

         9.       We will pay and/or cause to be paid all taxes, levies and
other governmental charges and assessments payable on or with respect to the
Collateral and any premises at which the Collateral is located, which if unpaid
may result in a lien or imposition thereon. Such taxes, levies, charges and
assessments will be paid prior to the date that any penalty for late payment may
be assessed with respect thereto, and if requested by you we will, at our
expense, provide you with receipts or other evidence of payment in form
satisfactory to you.

         10.      We will not suffer or permit any lien, security interest,
charge, claim or encumbrance to be placed on any of the Collateral, other than
in your favor, or suffer or permit any interest to exist therein which is
adverse to your own. We represent that we are, and agree to remain, the sole and
absolute owner of the Collateral, until sold in the ordinary course of our
business, and are and will remain qualified under the terms of all applicable
laws and under our dealership arrangements with Manufacturer to conduct our
business as presently conducted, with all necessary governmental and other
licenses, consents and authorizations having been obtained.

         11.      At your option, without any obligation to do so, you may pay
and discharge taxes, liens, levies, security interests or other encumbrances
against the Collateral, may pay for insurance on and for the maintenance and
preservation of the Collateral and perform on our behalf any other obligation
required to be performed by us hereunder but which we have failed to so do. We
shall reimburse you on demand for any payment made or any expense incurred by
you pursuant to the authority hereof, with interest at the highest rate
chargeable on any of our loans with you, and will pay you a late charge of 1.5%
per month of the amount due to you, or the highest legally permissible rate if
lower.

         12.      We will furnish you such information regarding our business
and financial condition as you may request from time to time, including without
limitation such financial statements, in such form and bearing such
certifications, as you shall require. We agree that you may audit or cause to be
audited our books and records at any and all times, during normal business
hours, whether announced or unannounced, and to permit you access to each
location at which any of our General Intangibles are located.

         13.      We will provide you with written notice of the following
matters immediately upon the occurrence thereof:

                  a)       A change in any information provided by us to you
herein, in any application made by us in connection with any loan, or otherwise,
including without limitation, any change in the location of any Collateral or in
any other circumstances regarding the Collateral or our business operations;

                  b)       Loss, theft, or substantial damage or destruction of
any of the Collateral or related to our business operations generally; or

                  c)       Any other matter which might have a material adverse
affect on our financial condition or operations or which, upon the giving of
notice or passage of time, or both, would result in an event of default by us
hereunder.

         14.      Any one or more of the following shall be an event of default
by us under this Agreement:

                  a)       Failure by us or any person jointly or otherwise
liable to you for our obligations to you, as surety, guarantor or otherwise
("Other Obligor") to pay any amount due you, as and when due, contained or
referred to herein or in any other instrument, document, or agreement to which
we or such Other Obligor are a party or by which we or such Other Obligor are
bound to you, whether now existing or hereafter created; or

                  b)       Failure by us or any Other Obligor to perform or
comply with any other obligation, covenant or liability contained or referred to
herein or in any other instrument, document, or agreement to which we or such
Other Obligor are a party or by which we or such Other Obligor are bound to you,
<PAGE>

whether now existing or hereafter created, and such failure, if reasonably
susceptible of cure, is not cured within fifteen (15) days of the occurrence
thereof; or

                  c)       If any warranty, representation, or statement made or
furnished to you by us or on our behalf or on behalf of an Other Obligor,
including any representation made on our behalf by Manufacturer, proves to be
false, misleading or incomplete in any respect; or

                  d)       Loss, theft or substantial damage or destruction of
any of the Collateral, or the making of any levy, seizure, or attachment thereof
or thereon; or

                  e)       Dissolution, merger, consolidation, sale or other
disposition of a controlling interest in our ownership or of substantially all
of our assets, termination of existence, insolvency, business failure,
appointment of a receiver, trustee, sequestrator, conservator, or other judicial
representative, whether similar or dissimilar, for us or for all or any part of
our property, assignment by us for the benefit of creditors or the commencement
of any proceeding by or against us under any provision of any federal or state
bankruptcy or insolvency laws; or

                  f)       Failure by us to pay any obligation(s) or
liability(ies) whatsoever, past, present or future, when due to any other
creditor, or the occurrence of any event of default by us under any agreement
with any of our respective creditors, including without limitation the
occurrence of an event of default under any lease relating to any premises upon
which all or any part of our Inventory or other Collateral is located; or

                  g)       If we give notice of a Bulk Sale or intended Bulk
Sale, or call a meeting of our respective unsecured creditors or offer a
composition or extension to such creditors, or cease to operate our respective
business.

         15.      Upon the occurrence of an event of default, you shall have the
right to repossess the Inventory and also any and all rights available under the
Code, including, without limitation, the right to declare any and all unpaid
balances of principal, interest, costs and expenses arising out of any and all
of our obligations or liabilities to you, whether past, present or future,
direct or indirect, matured or unmatured, liquidated or unliquidated,
immediately due and payable without notice to or demand on us. We irrevocably
authorize you or your agent to enter all premises to take possession of and
remove the Inventory and other Collateral and release you from any and all
liability with respect to such entry or removal. We shall in case of default, if
you so request, assemble and deliver the Inventory and other Collateral, at our
expense, to a place to be designated by you. We shall pay all of the costs you
incur in the enforcement of any of our obligations to you or the collection of
any liabilities owed to you by us, including, without limitation, costs,
expenses and reasonable attorneys' fees. If any notification of intended
disposition of any of the Inventory or other Collateral is required by law, such
notification shall be deemed reasonably and properly given if mailed by ordinary
mail or overnight delivery service at least ten (10) days before such
disposition, postage prepaid, addressed to us, either at our address shown in
this Agreement, or at such other address as we may have designated to you in
writing.

         16.      To the extent permitted by applicable law, we authorize you,
your designee, the Clerk of the Court, or any attorney of any Court, in the
State of Rhode Island or any other state, to appear for us at any time in any
and all actions and to confess judgment against us for all sums then owed to
you, whether or not then payable, together with an attorney's fee of 15% of all
sums then owed and/or for the recovery of any or all of the Inventory in our
possession. Wherever this provision is prohibited, unenforceable or unlawful, it
is deemed stricken from this Agreement.

         17.      Any law, custom or usage to the contrary notwithstanding, you
shall have the right at all times to enforce the covenants and provisions of
this Agreement in strict accordance with the terms hereof, notwithstanding any
conduct or custom on your part in refraining from so doing at any time or times.
Your failure at any time to invoke your rights under the covenants and
provisions of this Agreement strictly in accordance with the same shall not be
construed as having created a custom in any way or manner contrary to the
specific terms and provisions of this Agreement or as having in any way or
manner modified, altered or waived the same. Time is of the essence in our
performance hereunder and under all other agreements with you. All of your
remedies are cumulative and not alternative, and can be exercised in any order
and in any manner, separately or simultaneously, and from time to time until all
liabilities and obligations to you are satisfied in full.

         18.      This Agreement may be assigned by you, but we may not assign
this Agreement without your prior written consent. If you assign this Agreement,
you shall have no further obligation hereunder. All of your rights hereunder
shall inure to the benefit of your successors and assigns and all our
obligations shall bind our successors and assigns. If there be more than one
party obligated to you under this Agreement, their obligations hereunder shall
be joint and several, and the terms "we" "us" or "our" as used herein shall
refer to them jointly and severally.

         19.      We authorize and empower you or your employees, agents or
representatives, on our behalf, and in our name, to complete and supply any
omission or blank spaces in this Agreement and in any documents or financing
statements executed by us and including amendments and continuations thereof
under the Code; to execute and/or have acknowledged any form of security
instruments, notes, drafts and documents; and to make any requisite affidavits
which may be necessary or required by you, and/or which you may desire to
evidence or secure advances made by you pursuant to the terms of this Agreement.
All of the foregoing may be executed in such form and substance as you in your
sole discretion may deem necessary or proper, and this power of attorney, being
coupled with an interest, is irrevocable.

         20.      Our officers, by execution hereof, warrant and represent to
you that we are a duly formed corporation and are qualified to do business in
the state(s) in which our place(s) of business is (are) located; and, at a Board
of Directors meeting duly convened, our officer(s) were properly authorized to
execute and deliver this Agreement and all other documents whether hereunder or
otherwise; that the execution and delivery of this Agreement does not contravene
the Articles of Incorporation, By-Laws, or any agreement, document or instrument
to which we are a party or by the terms of which we are bound.

<PAGE>

         21.      Any provision or part thereof in this Agreement found upon
judicial interpretation or construction to be prohibited by law shall be
ineffective to the extent of such prohibition, without invalidating the
remaining provisions hereof. All words used shall be understood and construed to
be of such gender or number as the circumstances may reasonably require.

         22.      THIS AGREEMENT SHALL BE DEEMED EFFECTIVE WHEN ACCEPTED AND
EXECUTED BY YOU IN THE STATE OF RHODE ISLAND, AND THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF RHODE ISLAND.

         23.      AS AN INDEPENDENT COVENANT, WE IRREVOCABLY CONSENT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF RHODE ISLAND IN ANY AND ALL ACTIONS
BETWEEN US WHETHER UNDER THIS AGREEMENT OR OTHERWISE AND TO THE SERVICE OF
PROCESS THEREIN BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO US AT THE
ADDRESS AS SET FORTH HEREIN OR ON YOUR RECORDS, AND IRREVOCABLY WAIVE JURY TRIAL
AND THE RIGHT THERETO IN ANY AND ALL ACTIONS BETWEEN US, WHETHER UNDER THIS
AGREEMENT OR OTHERWISE.

                  WE HEREBY ACKNOWLEDGE THAT WE HAVE READ AND UNDERSTAND ALL OF
THE TERMS AND PROVISIONS OF THIS AGREEMENT.

                  Intending to be legally bound, signed and delivered on
February 18th, 2004:

VALERENT, INC.
----------------------------------------------------
(Corporate Name)

By:              /s/ Frank Cano
   -------------------------------------------------
                     President

Attest           /s/ Patricia L. Winstead
       ---------------------------------------------
                     Secretary

INTERNETWORK EXPERTS, INC.
-----------------------------------------------------
(Corporate Name)

By:              /s/ Mark T. Hilz
    -------------------------------------------------
                     President

Attest:          /s/ Patricia L. Winstead
        ---------------------------------------------
                     Secretary

(CORPORATE SEAL)

I-SECTOR CORPORATION
-----------------------------------------------------
(Corporate Name)

By:             /s/ James H. Long
    -------------------------------------------------
                    President

Attest:         /s/ Patricia L. Winstead
        ---------------------------------------------
                    Secretary

(CORPORATE SEAL)

ISECOLDSUB, INC.
-----------------------------------------------------
(Corporate Name)

By:             /s/ James H. Long
    -------------------------------------------------
                    President

Attest:         /s/ Patricia L. Winstead
        ---------------------------------------------
                    Secretary

STRATASOFT, INC.
-----------------------------------------------------
(Corporate Name)

By:             /s/ William R. Hennessy
    -------------------------------------------------
                    President

Attest:         /s/ Patricia L. Winstead
        ---------------------------------------------
                    Secretary

LOAN AND SECURITY AGREEMENT

<PAGE>

VALERENT, INC., INTERNETWORK EXPERTS, INC.,
I-SECTOR CORPORATION, ISECOLDSUB, INC.,
STRATASOFT, INC.

                                          APPROVED AND ACCEPTED

                                          TEXTRON FINANCIAL CORPORATION
                                          (Secured Party)

                                          BY:    /s/ Patrick Smith
                                             ---------------------------
                                          DATE:  February 23, 2004
                                               -------------------------

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