Document:

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                                                                   EXHIBIT 10.15

                             SUBORDINATION AGREEMENT

         This Agreement, dated as of July 5, 1999, is made by William R. Childs
(the "Subordinated Creditor"), for the benefit of Wells Fargo Business Credit,
Inc., a Minnesota corporation (the "Lender").

         Chaparral Network Storage, Inc., formerly known as Chaparral
Technologies, Inc., a Delaware corporation (the "Borrower"), is now or hereafter
may be indebted to the Lender on account of loans or the other extensions of
credit or financial accommodations from the Lender to the Borrower, or to any
other person under the guaranty or endorsement of the Borrower.

         The Subordinated Creditor has made or may make loans or grant other
financial accommodations to the Borrower.

         As a condition to making any loan or extension of credit to the
Borrower, the Lender has required that the Subordinated Creditor subordinate the
payment of the Subordinated Creditor's loans and other financial accommodations
to the payment of any and all indebtedness of the Borrower to the Lender.
Assisting the Borrower in obtaining credit accommodations from the Lender and
subordinating his interests pursuant to the terms of this Agreement are in the
Subordinated Creditor's best interest.

         ACCORDINGLY, in consideration of the loans and other financial
accommodations that have been made and may hereafter be made by the Lender for
the benefit of the Borrower, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Subordinated
Creditor hereby agrees as follows:

         1. Definitions. As used herein, the following terms have the meanings
set forth below:

          "Availability" has the meaning given in the Credit Agreement.

          "Borrower Default" means a Default or Event of Default as defined in
     any agreement or instrument evidencing, governing, or issued in connection
     with Lender Indebtedness, including, but not limited to, the Credit
     Agreement, or any default under or breach of any such agreement or
     instrument.

          "Cash Flow" means the Borrower's fiscal year-to-date Net Income plus
     depreciation and amortization, plus other non-cash items including (without
     limitation) any deferred interest, less the sum of (a) Current Maturities
     of Long Term Debt and (b) unfinanced Capital Expenditures. Capitalized
     terms used in this definition and not defined in this Agreement shall have
     the meaning given in the Credit Agreement.

          "Credit Agreement" means the Credit and Security Agreement dated as of
     July 5, 1999, by and between the Borrower and the Lender, as the same may
     hereafter be amended, supplemented or restated from time to time.

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          "Current Maturities of Long Term Debt" as of a given date means the
     amount of the Borrower's long-term debt and capitalized leases which became
     due during the fiscal year-to-date period ending on the designated date.

          "Lender Indebtedness" means each and every debt, liability and
     obligation of every type and description which the Borrower may now or at
     any time hereafter owe to the Lender, whether such debt, liability or
     obligation now exists or is hereafter created or incurred, and whether it
     is or may be direct or indirect, due or to become due, absolute or
     contingent, primary or secondary, liquidated or unliquidated, or joint,
     several or joint and several, all interest thereon, all renewals,
     extensions and modifications thereof and any notes issued in whole or
     partial substitution therefor.

          "Subordinated Indebtedness" means all obligations arising under the
     Subordinated Note and each and every other debt, liability and obligation
     of every type and description which the Borrower may now or at any time
     hereafter owe to the Subordinated Creditor, whether such debt, liability or
     obligation now exists or is hereafter created or incurred, and whether it
     is or may be direct or indirect, due or to become due, absolute or
     contingent, primary or secondary, liquidated or unliquidated, or joint,
     several or joint and several.

          "Subordinated Note" means, collectively, all of the following: the
     Borrower's Promissory Note, dated as of January 27, 1999, in the original
     principal amount of $50,000, the Borrower's Promissory Note, dated as of
     March 1, 1999, in the original principal amount of $400,000, the Borrower's
     Promissory Note, dated as of March 18, 1999, in the original principal
     amount of $200,000, the Borrower's Promissory Note, dated as of April 1,
     1999, in the original principal amount of $200,000, and the Borrower's
     Promissory Note, dated as of April 14, 1999, in the original principal
     amount of $200,000, each payable to the Subordinated Creditor, and any
     other Promissory Note issued in the future by the Borrower payable to the
     Subordinated Creditor, provided such Promissory Note contains the legend
     set forth in Exhibit A hereto, together with all renewals, extensions and
     modifications thereof and any note or notes issued in substitution
     therefor.

         2. Subordination. The payment of all of the Subordinated Indebtedness
is hereby expressly subordinated to the extent and in the manner hereinafter set
forth to the payment in full of the Lender Indebtedness; and regardless of any
priority otherwise available to the Subordinated Creditor by law or by
agreement, the Lender shall hold a first security interest in all collateral
securing payment of the Lender Indebtedness (the "Collateral"), and any security
interest claimed therein (including any proceeds thereof) by the Subordinated
Creditor shall be and remain fully subordinate for all purposes to the security
interest of the Lender therein for all purposes whatsoever.

         3. Principal Payments. Until all of the Lender Indebtedness has been
paid in full, the Subordinated Creditor shall not, without the Lender's prior
written consent, demand, receive or accept any principal payment, from the
Borrower in respect of the Subordinated Indebtedness, or exercise any right of
or permit any setoff in respect of the Subordinated Indebtedness, except that
the

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Subordinated Creditor may accept payments of principal under the Subordinated
Note within 30 days of the end of each fiscal quarter, so long as (a) no
Borrower Default has occurred and is continuing or will occur as a result of or
immediately following any such payment, (b) average Availability for the 90-day
period prior to such payment is greater than $200,000, (c) Availability after
such payment will be greater than $200,000, (d) the sum of such payment and all
prior payments to Subordinated Creditor and all of the Borrower's other
subordinated creditors during the fiscal year in which such payment is proposed
to be made will not exceed 70% of the Borrower's fiscal year-to-date Cash Flow,
and (e) the date of the proposed payment is on January 1, 2000 or thereafter.

         4. Interest Payments. Without the Lender's prior written consent, the
Subordinated Creditor shall not demand, receive or accept any interest payment
from the Borrower in respect of the Subordinated Indebtedness so long as any
Borrower Default exists or if a Borrower Default will occur as a result of or
immediately following such interest payment.

         5. Receipt of Prohibited Payments. If the Subordinated Creditor
receives any payment on the Subordinated Indebtedness that the Subordinated
Creditor is not entitled to receive under the provisions of this Agreement, the
Subordinated Creditor will hold the amount so received in trust for the Lender
and will forthwith turn over such payment to the Lender in the form received
(except for the endorsement of the Subordinated Creditor where necessary) for
application to then-existing Lender Indebtedness (whether or not due), in such
manner of application as the Lender may deem appropriate. If the Subordinated
Creditor exercises any right of setoff which the Subordinated Creditor is not
permitted to exercise under the provisions of this Agreement, the Subordinated
Creditor will promptly pay over to the Lender, in immediately available funds,
an amount equal to the amount of the claims or obligations offset. If the
Subordinated Creditor fails to make any endorsement required under this
Agreement, the Lender, or any of its officers or employees or agents on behalf
of the Lender, is hereby irrevocably appointed as the attorney-in-fact (which
appointment is coupled with an interest) for the Subordinated Creditor to make
such endorsement in the Subordinated Creditor's name.

         6. Action on Subordinated Debt. The Subordinated Creditor will not
commence any action or proceeding against the Borrower to recover all or any
part of the Subordinated Indebtedness, or join with any creditor (unless the
Lender shall so join) in bringing any proceeding against the Borrower under any
bankruptcy, reorganization, readjustment of debt, arrangement of debt
receivership, liquidation or insolvency law or statute of the federal or any
state government, or take possession of, sell, or dispose of any Collateral, or
exercise or enforce any right or remedy available to the Subordinated Creditor
with respect to any such Collateral, unless and until the Lender Indebtedness
has been paid in full.

         7. Action Concerning Collateral.

          (a) Notwithstanding any security interest now held or hereafter
     acquired by the Subordinated Creditor, the Lender may take possession of,
     sell, dispose of, and otherwise deal with all or any part of the
     Collateral, and may enforce any right or remedy available to it with
     respect to the Collateral, all without notice to or consent of the
     Subordinated Creditor except as specifically required by applicable law.

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          (b) In addition, and without limiting the generality of the foregoing,
     if a Borrower Default has occurred and is continuing and the Borrower
     intends to sell any Collateral to an unrelated third party outside the
     ordinary course of business, the Subordinated Creditor shall, upon the
     Lender's request, execute and deliver to such purchaser such instruments as
     may reasonably be necessary to terminate and release any security interest
     or lien the Subordinated Creditor has in the Collateral to be sold.

          (c) The Lender shall have no duty to preserve, protect, care for,
     insure, take possession of, collect, dispose of, or otherwise realize upon
     any of the Collateral, and in no event shall the Lender be deemed the
     Subordinated Creditor's agent with respect to the Collateral. All proceeds
     received by the Lender with respect to any Collateral may be applied,
     first, to pay or reimburse the Lender for all costs and expenses (including
     reasonable attorneys' fees) incurred by the Lender in connection with the
     collection of such proceeds, and, second, to any indebtedness secured by
     the Lender's security interest in that Collateral in any order that it may
     choose.

         8. Bankruptcy and Insolvency. In the event of any receivership,
insolvency, bankruptcy, assignment for the benefit of creditors, reorganization
or arrangement with creditors, whether or not pursuant to bankruptcy law, the
sale of all or substantially all of the assets of the Borrower, dissolution,
liquidation or any other marshaling of the assets or liabilities of the
Borrower, the Subordinated Creditor will file all claims, proofs of claim or
other instruments of similar character necessary to enforce the obligations of
the Borrower in respect of the Subordinated Indebtedness and will hold in trust
for the Lender and promptly pay over to the Lender in the form received (except
for the endorsement of the Subordinated Creditor where necessary) for
application to the then-existing Lender Indebtedness, any and all moneys,
dividends or other assets received in any such proceedings on account of the
Subordinated Indebtedness, unless and until the Lender Indebtedness has been
paid in full. If the Subordinated Creditor shall fail to take any such action,
the Lender, as attorney-in-fact for the Subordinated Creditor, may take such
action on the Subordinated Creditor's behalf. The Subordinated Creditor hereby
irrevocably appoints the Lender, or any of its officers or employees on behalf
of the Lender, as the attorney-in-fact for the Subordinated Creditor (which
appointment is coupled with an interest) with the power but not the duty to
demand, sue for, collect and receive any and all such moneys, dividends or other
assets and give acquittance therefor and to file any claim, proof of claim or
other instrument of similar character, to vote claims comprising Subordinated
Indebtedness to accept or reject any plan of partial or complete liquidation,
reorganization, arrangement, composition or extension and to take such other
action in the Lender's own name or in the name of the Subordinated Creditor as
the Lender may deem necessary or advisable for the enforcement of the agreements
contained herein; and the Subordinated Creditor will execute and deliver to the
Lender such other and further powers-of-attorney or instruments as the Lender
may request in order to accomplish the foregoing.

         9. Restrictive Legend; Transfer of Subordinated Indebtedness. The
Subordinated Creditor will cause the Subordinated Note and all other notes,
bonds, debentures or other instruments evidencing the Subordinated Indebtedness
or any part thereof to contain a specific statement thereon to the effect that
the indebtedness thereby evidenced is subject to the provisions of this
Agreement,

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and the Subordinated Creditor will mark its books conspicuously to evidence the
subordination effected hereby. Attached hereto is a true and correct copy of the
Subordinated Note bearing such legend. At the request of the Lender, the
Subordinated Creditor shall deposit with the Lender the Subordinated Note and
all of the other notes, bonds, debentures or other instruments evidencing the
Subordinated Indebtedness, which notes, bonds, debentures or other instruments
may be held by the Lender so long as any Lender Indebtedness remains
outstanding. The Subordinated Creditor is the lawful holder of the Subordinated
Note and has not transferred any interest therein to any other person. Without
the prior written consent of the Lender, the Subordinated Creditor will not
assign, transfer or pledge to any other person any of the Subordinated
Indebtedness or agree to a discharge or forgiveness of the same so long as there
remains outstanding any of the Lender Indebtedness.

         10. Continuing Effect. This Agreement shall constitute a continuing
agreement of subordination, and the Lender may, without notice to or consent by
the Subordinated Creditor, modify any term of the Lender Indebtedness in
reliance upon this Agreement. Without limiting the generality of the foregoing,
the Lender may, at any time and from time to time, either before or after
receipt of any such notice of revocation, without the consent of or notice to
the Subordinated Creditor and without incurring responsibility to the
Subordinated Creditor or impairing or releasing any of the Lender's rights or
any of the Subordinated Creditor's obligations hereunder:

          (a) change the interest rate or change the amount of payment or extend
     the time for payment or renew or otherwise alter the terms of any Lender
     Indebtedness or any instrument evidencing the same in any manner;

          (b) sell, exchange, release or otherwise deal with any property at any
     time securing payment of the Lender Indebtedness or any part thereof;

          (c) release anyone liable in any manner for the payment or collection
     of the Lender Indebtedness or any part thereof,

          (d) exercise or refrain from exercising any right against the Borrower
     or any other person (including the Subordinated Creditor); and

          (e) apply any sums received by the Lender, by whomsoever paid and
     however realized, to the Lender Indebtedness in such manner as the Lender
     shall deem appropriate.

         11. No Commitment. None of the provisions of this Agreement shall be
deemed or construed to constitute or imply any commitment or obligation on the
part of the Lender to make any future loans or other extensions of credit or
financial accommodations to the Borrower.

         12. Notice. All notices and other communications hereunder shall be in
writing and shall be (i) personally delivered, (ii) transmitted by registered
mail, postage prepaid, or (iii) transmitted by telecopy, in each case addressed
to the party to whom notice is being given at its address as set forth below:

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                  If to the Lender:

                  Wells Fargo Business Credit, Inc.
                  1740 Broadway
                  Denver, Colorado  80274-8625
                  Telecopier: (303) 863-4904
                  Attention: Tim Ulrich

                  If to the Subordinated Creditor:

                  Chaparral Network Storage, Inc.
                  1951 South Fordham
                  Longmont, Colorado  80503
                  Attention: Douglas Lehrmann
                  Telecopier: (303) 684-3201

or at such other address as may hereafter be designated in writing by that
party. All such notices or other communications shall be deemed to have been
given on (i) the date received if delivered personally, (ii) the date of posting
if delivered by mail, or (iii) the date of transmission if delivered by
telecopy.

         13. Conflict in Agreements. If the subordination provisions of any
instrument evidencing Subordinated Indebtedness conflict with the terms of this
Agreement, the terms of this Agreement shall govern the relationship between the
Lender and the Subordinated Creditor.

         14. No Waiver. No waiver shall be deemed to be made by the Lender of
any of its rights hereunder unless the same shall be in writing signed on behalf
of the Lender, and each such waiver, if any, shall be a waiver only with respect
to the specific matter or matters to which the waiver relates and shall in no
way impair the rights of the Lender or the obligations of the Subordinated
Creditor to the Lender in any other respect at any time.

         15. Binding Effect, Acceptance. This Agreement shall be binding upon
the Subordinated Creditor and the Subordinated Creditor's heirs, legal
representatives, successors and assigns and shall inure to the benefit of the
Lender and its participants, successors and assigns irrespective of whether this
or any similar agreement is executed by any other Subordinated Creditor of the
Borrower. Notice of acceptance by the Lender of this Agreement or of reliance by
the Lender upon this Agreement is hereby waived by the Subordinated Creditor.

         16. Miscellaneous. The paragraph headings herein are included for
convenience of reference only and shall not constitute a part of this Agreement
for any other purpose. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

         17. Governing Law; Consent to Jurisdiction and Venue; Waiver of Jury
Trial. This Agreement shall be governed by and construed in accordance with the
substantive laws (other than

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conflict laws) of the State of Colorado. Each party consents to the personal
jurisdiction of the state and federal courts located in the State of Colorado in
connection with any controversy related to this Agreement, waives any argument
that venue in any such forum is not convenient, and agrees that any litigation
initiated by any of them in connection with this Agreement shall be venued in
either the District Court for the City and County of Denver, or the United
States District Court, District of Colorado. THE PARTIES WAIVE ANY RIGHT TO
TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR PERTAINING TO THIS
ACKNOWLEDGMENT.

         IN WITNESS WHEREOF, the Subordinated Creditor has executed this
Agreement as of the date and year first above-written.

                                   /s/ William R. Childs
                                   --------------------------------------
                                   William R. Childs

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                           Acknowledgment by Borrower

         The undersigned, being the Borrower referred to in the foregoing
Agreement, hereby (i) acknowledges receipt of a copy thereof, (ii) agrees to all
of the terms and provisions thereof, (iii) agrees to and with the Lender that it
shall make no payment on the Subordinated Indebtedness that the Subordinated
Creditor would not be entitled to receive under the provisions of the Agreement,
(iv) agrees that any such payment will constitute a default under the Lender
Indebtedness, and (v) agrees to mark its books conspicuously to evidence the
subordination of the Subordinated Indebtedness effected hereby.

                                     CHAPARRAL NETWORK STORAGE, INC.

                                     By /s/ Douglas J. Lehrmann
                                       ------------------------------------
                                       Its Vice President, Finance
                                          ---------------------------------

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                                                                   EXHIBIT 10.16

                                 LOAN AGREEMENT

     THIS AGREEMENT, dated as of January 14, 2000, is between Chaparral Network
Storage, Inc. (the "Company"), 1951 S. Fordham Street, Longmont, Colorado 80503
(address), and Norwest Bank Colorado N.A. - Boulder (the "Bank"), 1242 Pearl
Street, P.O. Box 227, Boulder, Colorado.

                                    ARTICLE I
                                   DEFINITIONS

     SECTION 1.1 The terms defined in this Article shall have the meanings
specified for all purposes of this Agreement.

     (a) "Borrowing Base" shall mean an amount equal to the sum of the
following:

         (1) 90% of the Company's U.S. Treasury or U.S. Agency investments with
a maturity of 1 year or less held in a Norwest Investment Services, Inc. account
and pledged to the Bank; plus

         (2) 80% of the Company's investment grade commercial paper investments
with a maturity of 1 year or less held in a Norwest Investment Services, Inc.
account and pledged to the Bank.

     (b) "Commitment Expiration Date" shall mean August 31, 2000.

     (c) "Consolidated Debt to Worth Ratio" shall mean the ratio of

             (i) the aggregate debt of the Company, determined in accordance
     with generally accepted accounting principles, less any debt formally
     subordinated by a creditor to the indebtedness of the Company to the Bank,
     to

             (ii) the Company's net equity, determined in accordance with
     generally accepted accounting principles, less any notes due from
     stockholders, plus any debt formally subordinated by a creditor to the
     indebtedness of the Company to the Bank. Debt to trade creditors that
     subordinate their lien positions to the Bank, if any, shall not be deemed
     subordinated debt for purposes of the foregoing calculation.

     (d) "Investment Grade Marketable Securities" shall mean U.S. Government and
U.S. Agency issued debt instruments and investment grade commercial paper, all
with maturities of one year or less. Money market funds backed solely by the
same investment instruments shall also qualify under this definition.

     (e) "Equity Equivalent Investments" shall mean cash provided to the Company
either by the purchase of common or preferred stock or by the making of Loans to
the Company that are formally subordinated to the indebtedness of the Company to
the Bank.

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     (f) "ERISA" shall mean the Employment Retirement Income Security Act of
1974, as amended.

     (g) "Event of Default" shall mean any of the events listed in Section 5.1
below.

     (h) "Loan" or "Loans" shall mean all advances that the Bank agrees to make
or issue hereunder.

                                   ARTICLE II
                                 THE COMMITMENT

     SECTION 2.1 The Bank agrees, on the terms herein set forth, to make Loans
to the Company under a Revolving Line of Credit in an aggregate amount not
exceeding the lesser of the Borrowing Base or $3,000,000.00. The Loans may be in
the form of cash advances as requested by the Company on or before the
Commitment Expiration Date, when said Loans, together with interest thereon,
shall be due and payable. The amount available for Loans at any time shall be
the lesser of $3,000,000.00 or the Borrowing Base, minus the aggregate principal
amount of all outstanding cash advances, minus the aggregate face amount of all
outstanding Letters of Credit. If any time the aggregate balance outstanding on
the Loans exceeds the Borrowing Base, the excess shall become immediately due
and payable and shall be paid to the Bank within five business days after
written notice to the Company.

     SECTION 2.2 The Loan shall be evidenced by a Promissory Note in the maximum
principal amount of $3,000,000.00, payable to the order of the Bank on or before
August 31, 2000.

     SECTION 2.3 The Loans shall bear interest at a rate equal to the Norwest
Bank Colorado National Association Prime Rate (the "Prime Rate") as in effect
from time to time, which rate shall change, without notice, whenever the Prime
Rate changes, to and including maturity. Overdue principal and (to the extent
legally enforceable) overdue interest, whether caused by acceleration of
maturity or otherwise, shall bear interest at a rate four percentage points
above the rate in effect at the time such principal or interest becomes due.
Interest shall be payable monthly in arrears on the last day of each month,
beginning January 31, 2000.

     SECTION 2.4 The Company shall have the right to repay the Loans in part or
in whole at any time without penalty; however, prepayment in full must be
accompanied by payment of all accrued interest then due.

     SECTION 2.5 All payments made by the Company on account of principal and of
interest shall be made in immediately available funds to the Bank.

     SECTION 2.6 The Bank's commitment to make the initial and all subsequent
Loans hereunder shall be subject to the following conditions:

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     (a) Prior to the initial Loan, payment by the Company of a 1/4% ($7,500.00)
loan commitment fee.

     (b) As of the dates of the initial and any subsequent Loans, all
representations and warranties of the Company contained herein shall be true and
no Event of Default shall have occurred and be continuing.

                                   ARTICLE III
                          REPRESENTATION AND WARRANTIES

The company represents and warrants to the Bank as follows:

     SECTION 3.1 The Company is duly organized, validly existing, and in good
standing under the laws of the State of Colorado, and is duly qualified to do
business wherever necessary to carry on its present operations.

     SECTION 3.2 The making and performance of this Agreement is within the
Company's corporate powers; has been duly authorized by all necessary corporate
action; does not require any stockholder consent; does not require the approval
of any federal or state regulatory authority; does not contravene any law,
regulation or agreement to which the Company is a party or by which it or its
assets may be bound; and will not conflict with any provision of the articles of
incorporation, bylaws or other governing documents of the Company.

     SECTION 3.3 This Agreement is the legal, valid and binding obligation of
the Company, enforceable in accordance with its terms.

     SECTION 3.4 There is no pending or threatened action or proceedings before
any court or administrative agency which may materially adversely affect the
Company's financial condition or operations.

     SECTION 3.5 The Company has good and marketable title to all of its
properties or assets (except leased assets), and none of such properties or
assets included in the Borrowing Base are subject to any mortgage, pledge, loan
security interest, encumbrance or any other security agreement or arrangement of
any type whatsoever except the security interests, liens and encumbrances
permitted by this Agreement.

     SECTION 3.6 To the best of the Company's knowledge and information no
material claim for taxes, whether federal, state or local, are presently being
assessed against the Company with respect to any past due taxes, nor are there
any tax disputes being litigated or determined by governmental proceedings at
the present time that have not been reflected in the financial statements of the
Company previously furnished to the Bank.

     SECTION 3.7 The Company or property of the Company is not currently the
subject of any threatened or ongoing litigation, judgment, decree, order,
citation, compliant, or notice of violation relating to or arising out of
environmental laws or issues. For purposes of this Agreement,

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<PAGE>   4

Contamination and Contaminated shall mean the presence of solid or hazardous
wastes, hazardous substances, pollutants or contaminants, petroleum, toxic or
hazardous constituents, or similar materials, as such terms are defined under
any federal, state, or local statute, whether currently or subsequently enacted,
or under common law.

                                   ARTICLE IV
                            COVENANTS OF THE BORROWER

     SECTION 4.1 So long as the Company may borrow hereunder and until payment
in full of the Note and performance of all other obligations of the Company, the
Company shall:

     (a) (i) Furnish to the Bank within 30 days after the end of each month
     during each fiscal year a consolidated balance sheet and income statement;

         (ii) furnish to the Bank within 120 days after the end of each fiscal
     year of the Company an audited consolidated balance sheet and income
     statement;

         (iii) furnish to the Bank within 120 days after the end of each fiscal
     year of the Company cash flow projections for the ensuing year;

         (iv) permit or cause to permit the Bank at any reasonable time to have
     access to the books and records of the Company, and to inspect or otherwise
     check the properties of the Company;

         (v) furnish to the Bank from time to time with reasonable promptness
     such further information relating to the financial condition and operations
     of the Company as the Bank may reasonably request; and

         (vi) reimburse the Bank for any reasonable costs incurred through the
     performance by the Bank of inspections of the Company's book's or
     operations.

     (b) Maintain a cash plus Investment Grade Marketable Securities position of
$4,000,000.00 or greater.

     (d) Maintain a Consolidated Debt to Worth Ratio not to exceed 1.5 to 1.

     (e) Maintain a minimum Net Worth position of $4,000,000.00 or greater.

     (f) Use the Bank as its principal depository for all demand and savings
business accounts.

     (g) Allow the Bank the opportunity to bid on all short term investments
including certificates of deposit and repurchase agreements.

     (h) Maintain insurance with responsible companies on such of its
properties, in such amounts and against such amount and against such risks as is
reasonable and customarily maintained by similar businesses operating in the
same vicinity.

                                       -4-

<PAGE>   5

     (i) Comply in all material respects with all laws and regulations
applicable to its business and operations.

     (j) Promptly provide notice to the Bank of (i) the occurrence of an Event
of Default; (ii) the occurrence of a "Reportable Event" (as defined in ERISA);
or (iii) the institution of steps by the Company to withdraw from or terminate
any employee benefit plan as to which the Company may have any liability.

     (k) Promptly furnish to the Bank copies of all documents filed by it with
the Securities and Exchange Commission, the National Association of Securities
Dealers, Inc., any securities exchange or any state securities commission,
including but not limited to all registration statements, annual reports on Form
10K, quarterly reports on Form 10Q, reports on Form 8K, proxy statements and
annual reports to shareholders, and all amendments there to.

     SECTION 4.2 So long as the Company may borrow hereunder and until payment
in full of the Note and performance of all other obligations of the Company
hereunder, the Company shall not, without the consent of the Bank, which consent
shall not be unreasonably withheld;

     (a) Pay a dividend on capital stock now or hereafter outstanding, or
redeem, retire, purchase or otherwise acquire directly or indirectly any shares
of the debtor's stock now or hereafter outstanding.

     (b) Enter into any mergers, acquisitions or consolidations.

     (c) Sell, lease or otherwise dispose of all or any substantial part of its
assets or operation.

     (d) Make any loans or advances to another person or entity, enter into any
direct borrowings other than purchase money security agreements for equipment
acquisitions or assume, guarantee or otherwise become contingently liable on any
borrowings or indebtedness of another person or entity.

     (e) Permit any Pension and/or Profit Sharing Plan maintained by it to:

         (i) Engage in any "prohibited transaction" as such term is defined in
     section 4975 of the Internal Revenue Code of 12954, as amended;

         (ii) Incur any "accumulated funding deficiency" as such term is defined
     in section 302 of ERISA; or

         (iii) Terminate in a manner which could result in the imposition of a
     lien on the property of the Company pursuant to section 4068 to ERISA.

     (f) Create, incur or permit to exist any lien, security interest or other
encumbrance upon any of its properties or assets included in the Borrowing Base
except (i) liens for taxes or other items

                                       -5-

<PAGE>   6

not yet overdue or being contested in good faith, or (ii) pursuant to purchase
money security agreements for equipment acquisitions.

                                    ARTICLE V
                                EVENTS OF DEFAULT

     SECTION 5.1 The occurrence of any of the following events shall be an
"Event of Default":

     (a) Any payment of principal or interest shall not be made when due and not
be cured within ten business days thereafter; or

     (b) Any representation or warranty made by the Company in connection with
the execution and delivery of this Agreement, or in any certificate furnished
pursuant hereto, shall prove to be at any time incorrect in any material
respect; or

     (c) The Company shall fail to perform or observe any other term, covenant
or agreement contained in this Agreement and such failure shall continue for a
period of seven days after written notice to the Company from the Bank; which
failure to perform or observe any covenant having occurred subsequent to review
of the occasion with the Bank; or

     (d) Any obligation of the Company for the payment of borrowed money is not
made at maturity, whether by acceleration or otherwise, or is declared to be due
and payable prior to the stated maturity thereof by reason of default or other
violation of the terms thereof; or

     (e) In the opinion of the Bank there shall occur a material adverse change
in the financial condition of the Company.

     SECTION 5.2 Upon the occurrence of an Event of Default, the obligation of
the Bank to make advances under this Agreement or any other loan commitment to
the Company and to issue Letters of Credit shall terminate and the Bank may
declare the principal balance, together with accrued interest thereon, to be
immediately due and payable, and the same shall forthwith become immediately due
and payable without presentment, protest, notice or demand of any kind, all of
which are hereby expressly waived by the Company Upon any such Event of Default,
the Bank may proceed with each and every remedy provided for it in this
Agreement, the Note, or security agreements and other instruments executed in
connection with the Loans, anything in said instruments to the contrary
not-withstanding, and may pursue any other remedy available to the Bank, whether
in law or equity, to enforce collection of all sums due and owing to the Bank,
all of such right and remedies being cumulative and not exclusive of all rights
and remedies which the Bank has or may have against the Company.

                                   ARTICLE VI
                                  MISCELLANEOUS

     SECTION 6.1 No failure on the part of the Bank in exercising any power or
right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power

                                       -6-

<PAGE>   7

preclude any other or further exercise thereof or the exercise of any other
right or power hereunder. No modification or waiver of any provision of this
Agreement nor consent to any departure by the Company therefrom shall in any
event be effective unless the same shall be in writing and then such a waiver or
consent shall be effective only in the specific instance and for the purposes
for which it was given. No notice or demand on the Company in any case shall
entitle it to any other or further notice or demand in similar or other
circumstances.

     SECTION 6.2 No modification of this Agreement shall be effective unless the
same be in writing and mutually agreeable between the two parties.

     SECTION 6.3 The Company agrees to pay all costs incurred by both parties in
connection with preparation of this Agreement, the enforcement of any provision
of this Agreement, the collection of the Note or the foreclosure or realization
upon any security therefor.

     SECTION 6.4 The Company agrees to defend, indemnify, and hold harmless the
Bank for, from, and against and to reimburse the Bank with respect to any and
all claims, actions, costs and expenses whatsoever (including, without
limitation, attorneys fees and expenses and costs reasonably incurred), known or
unknown, asserted against or incurred by the Bank at any time by reason of or
arising out of or relating to any actual or alleged violation of any existing or
future environmental law or actual or threatened Contamination relating to the
property or activities of the Company, whether or not such contamination was in
violation of any environmental statute. This indemnity shall last indefinitely
and is specifically intended to survive this Agreement.

     SECTION 6.5 All notices or other communication s required or permitted
under this Agreement shall be in writing and shall be deemed given when
personally delivered or mailed to the respective parties' addresses as set forth
above.

     SECTION 6.6 This Agreement and the rights and obligations of the parties
hereunder shall be construed and interpreted in accordance with the laws of the
State of Colorado.

Norwest Bank Colorado, N.A.            Chaparral Network Storage, Inc
Boulder

By: /s/ Thomas H. Stauffer             By: /s/ Douglas Lehrmann
   --------------------------------       ---------------------------------
   Thomas H. Stauffer                     Douglas Lehrmann
   Vice President                         Chief Financial Officer
                  .

                                       -7-

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