Document:

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                                 CONFIDENTIAL

                            OEM RESELLER AGREEMENT

     THIS RESELLER AGREEMENT made this 17 day of September, 1997

BETWEEN:

          NEWBRIDGE NETWORKS CORPORATION, a Canadian corporation, having its
          main office at 600 March Road, P.O. Box 13600, Kanata, Ontario,
          Canada K2K 2E6

          ("Newbridge")

AND:

          SONOMA SYSTEMS, INC., a California corporation, having its main
          office at 4640 Admiralty Way, Marina Del Rey, California, 90292, USA

          ("Vendor")

WHEREAS Newbridge wishes to distribute certain Vendor products;

AND WHEREAS Vendor wishes to provide such Vendor products to Newbridge, in
accordance with the terms and conditions of this Agreement;

NOW THEREFORE, in consideration of the mutual covenants contained herein, and
for other good and valuable consideration (the receipt and sufficiency of
which are hereby acknowledged) the parties agree as follows:

1.   DEFINITIONS
In this Agreement, unless the context otherwise requires:

(a)  "Agreement" shall mean this agreement and all attached schedules and
     exhibits, as may be amended in accordance with the provisions herein.

(b)  "Authorized Areas" shall mean the regions set forth in Schedule "B"
     hereto.

(c)  "Documentation" shall mean all sales, marketing and technical literature
     relating to the Vendor Products, and any updates, modifications and
     enhancements made to them.

(d)  "Effective Date" shall be the date first written above.

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(e)  "End User" shall mean a person or entity that acquires a Vendor Product
     for its own use rather than resale or distribution.

(f)  "Transfer Price" shall mean the list price less the discount specified
     in Schedule A.

(g)  "Vendor Products" shall mean the products listed in Schedule "A" hereto.

2.   APPOINTMENT

2.1  APPOINTMENT. Subject to the terms and conditions of this Agreement,
Vendor hereby appoints Newbridge as an independent, non-exclusive, authorized
reseller for the Vendor Products, in the Authorized Areas. Newbridge may
exercise any of its rights hereunder either directly or through its
subsidiaries, affiliates and/or distributors.

2.2  REGIONAL AMENDMENTS. Certain provisions of this Agreement may be
modified for particular regions of the Authorized Areas, as provided in
Schedules E, F and G hereto. In the event of any conflict or inconsistency
between the terms of this Agreement and Schedules E, F and/or G, the terms of
Schedules E, F and/or G shall prevail for such region only. Except as
specifically and to the extent modified by Schedules E, F, and/or G for a
particular region, all of the terms and provisions of the Agreement shall
continue to remain in full force and effect.

3.   NEWBRIDGE'S OBLIGATIONS

3.1  MARKETING. Newbridge shall use reasonable commercial efforts to market
the Vendor Products in the Authorized Areas.

3.2  TECHNICAL SUPPORT. Newbridge shall provide the support services for the
Vendor Products to its End Users in the Authorized Areas, as provided in
Schedule D.

3.3  TRADE-MARKS. During the term of this Agreement, Newbridge shall use
Vendor's trade-marks and logos in accordance with Vendor's reasonable written
guidelines, as provided to Newbridge from time to time. End User services for
the Vendor Products may be marketed and sold under any applicable Newbridge
service marks or trademarks without restriction.

3.4  ACCOUNT MANAGER. Newbridge shall assign individuals in the Authorized
Areas who will act as account coordination manager for Vendor and the Vendor
Products.

3.5  FORECASTS. Newbridge shall provide to Vendor upon execution of this
Agreement a non-binding forecast of its estimated requirements for the Vendor
Products, for the initial twelve (12) month period. At the beginning of each
calendar quarter while this Agreement is in effect, Newbridge shall provide
Vendor with an updated non-binding forecast by Vendor Products for the
following twelve (12) months. Such forecasts shall not create any obligations
on the part of Newbridge.

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3.6  INTERFACE CARD RESTRICTIONS. During the term of this Agreement,
Newbridge agrees with Vendor that it shall not integrate within the Products
any interface cards not approved by Vendor, which approval shall not be
unreasonably withheld or delayed.

4.   VENDOR'S OBLIGATIONS

4.1  SUPPLY. Vendor agrees to sell to Newbridge the Vendor Products and spare
parts ordered by Newbridge in accordance with the terms of this Agreement.

4.2  DOCUMENTATION. Vendor shall provide Newbridge with a master copy and a
reasonable number of copies of all Documentation for each Vendor Product.
Vendor shall supply Documentation in both hardcopy format and electronic
format suitable for dissemination by Newbridge via the internet and/or CD
ROM. Vendor grants Newbridge a non-exclusive, royalty-free right and license
to copy, use, modify, translate and otherwise prepare derivative works of the
Documentation and distribute the Documentation and derivative works thereof
to its End Users in the Authorized Areas.

4.3  TECHNICAL SUPPORT. Vendor shall provide the support services to
Newbridge, and Newbridge shall provide support services to its distributors
and End Users, as provided in Schedule D.

     4.3.1 REMOTE DIAGNOSTIC TOOLS. In order for Newbridge to perform on-line
     trouble shooting of the Vendor Product hardware and software, Vendor
     shall supply Newbridge with any remote diagnostic tools and routines
     that may be developed for the Vendor Products at no charge.

4.4  TECHNICAL INFORMATION SERVICE. Vendor shall provide to Newbridge a range
of post sales technical information at regular intervals to ensure that
Newbridge has all current and relevant information regarding the Vendor
Products. These shall include, but not be limited to, the latest software and
hardware release notes, product release descriptions, technical tips and
bulletins, problem report bug list, white papers, reports, product change
notices, technical alerts, urgent problem notification and any other
applicable literature. Vendor shall supply information in hardcopy format and
in electronic format suitable for dissemination by Newbridge via the internet
and/or CD ROM.

4.5  SOFTWARE MAINTENANCE. In return for a [*] dollar ($[*]) per quarter
maintenance payment (the "Maintenance Fee") from Newbridge commencing January
1998, Vendor shall provide to Newbridge at no cost all defect correction code
(dot releases, patches, and software problem workarounds) for the Vendor
Product software, and all associated Documentation and technical information.
Vendor grants to Newbridge a royalty-free right and license to distribute
such software and Documentation to Newbridge End Users who have current valid
service agreements with Newbridge. Vendor shall supply software maintenance
release code in electronic format suitable for dissemination by Newbridge via
the internet and CD ROM.

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4.6    SOFTWARE UPGRADES. Except for Vendor Products which have significant
new functionality and are priced separately on Vendor's price list, Vendor
shall provide to Newbridge all software feature release upgrades for Vendor
Products. Vendor shall supply software maintenance release code in
electronic format suitable for dissemination by Newbridge via the internet and
CD ROM.

4.7    BETA SOFTWARE EVALUATION SERVICE. Vendor shall provide Newbridge with
copies of all beta software for the Vendor Products, for Newbridge's use and
evaluation.

4.8    TRAINING. Vendor shall provide the following training services to
Newbridge:

       (a)    INITIAL TRAINING. Vendor shall provide, at its expense and on
       its premises, in each Authorized Area, training for up to 15 Newbridge
       personnel. If Vendor does not have a suitable facility in an
       Authorized Area, training will be provided at Newbridge's facility at
       Vendors expense. The courses will train Newbridge personnel on the
       functionality of the Vendor Products as well as problem resolution
       procedures for the Vendor Products.

       (b)    SUBSEQUENT TRAINING. Vendor will allow Newbridge to send up to
       4 technical representatives from each of the Authorized Areas to
       attend, at no cost, scheduled training and information sessions
       regarding any new Vendor Product features or releases at Vendor's
       premises in each Authorized Area. If Vendor does not have a suitable
       facility in an Authorized Area, training will be provided at
       Newbridge's facility at Vendor's expense.

       (c)    TRAINING MATERIALS. Vendor grants to Newbridge a non-exclusive,
       royalty-free right and license to copy, modify, use, and distribute
       training materials provided by Vendor.

       (d)    ADDITIONAL TRAINING. Any further training requested by
       Newbridge, over and above the obligations stated herein, shall be made
       available to Newbridge at Vendor's standard rates.

4.9    QUALITY METRICS. Vendor shall provide to Newbridge written
documentation of the full quality assurance processes for the Vendor
Products. Vendor shall further provide written confirmation of its compliance
regarding the examination process and where applicable, Vendor shall provide
Newbridge with any problems found and their resolution process.

4.10   APPROVALS. Vendor is responsible for obtaining all approvals required
to permit Newbridge to resell the Vendor Products in the Authorized Areas
including, but not limited to, UL, CSA and FCC approvals. Vendor shall bear
all costs associated with such approvals. Where permitted by law, Vendor
shall transfer approvals to Newbridge's name, or shall assist Newbridge in
registering second approvals in Newbridge's name. Any costs associated with
the transfer of approvals or second approvals shall be borne by Newbridge.

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4.11  CONFIDENTIALITY. Vendor acknowledges that, from time-to-time, it will
be exposed to confidential information and materials regarding Newbridge's
business "Confidential Information"). Confidential Information includes but
is not limited to, information concerning Newbridge's technology, products,
customers and suppliers. Vendor will: (i) use a reasonable standard of care to
protect Confidential Information, (ii) not use Confidential Information
except as expressly permitted by Newbridge, (iii) not disclose Confidential
Information to third parties, and (iv) not reproduce Confidential Information
without Newbridge's prior written consent.

5.     PRICE TERMS

5.1    PURCHASE PRICE. Except as provided below, Newbridge shall pay the
Transfer Price for the Vendor Products. The Transfer Price will be no greater
than the Vendor's lowest price to any other customer in comparable
circumstances.

5.2   PRICE INCREASE. The Transfer Price shall not increase during the term
of this Agreement. While Vendor may freely increase the list price for the
Vendor Products, such increase shall not increase the Transfer Price
whatsoever.

5.3   PRICE DECREASE. In the event Vendor decreases the list price for any
Vendor Product, the decrease will apply to all units of such Vendor Product
in Newbridge's inventory. Newbridge's account will be credited in an amount
equal to the difference between the list price at which each such unit in
inventory was delivered to Newbridge, and the new, reduced list price.

5.4   DELIVERY COSTS. All Vendor Products are FCA (Incoterms, 1990) Vendor's
shipping point. Vendor shall use the carrier specified by Newbridge (if any),
and shall charge all delivery costs against the Newbridge account number
authorized by Newbridge on a case-by-case basis.

5.5   TAXES. The prices for the Vendor Products do not include sales taxes or
duties. Newbridge will pay (or reimburse Vendor) all such taxes or duties
designated, levied or based upon this Agreement, except those based on
Vendor's income.

6.    ORDERING PROCEDURE, DELIVERY AND PAYMENT TERMS

6.1   PURCHASE ORDERS. Newbridge shall order the Vendor Products by issuance
of a written purchase order ("Purchase Order"). Each Purchase Order shall
include the desired quantity of Vendor Products, a requested ship date, the
method of shipment and the location to which the Vendor Products should be
shipped. Vendor will use best efforts to meet the requested ship date in
Newbridge's Purchase Orders, provided that the lead time on requested ship
dates shall be no less than [*] ([*]) weeks in the first year of the
Agreement, and no less than [*] ([*]) weeks afterwards.

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6.2   ACCEPTANCE. Vendor shall promptly process Purchase Orders issued by
Newbridge, and shall accept all Purchase Orders made in accordance with this
Agreement. Purchase Orders will be deemed to be accepted, unless written
notice of rejection of a Purchase Order (or part thereof) is made within five
(5) business days of Vendor's receipt of the Purchase Order. Where Vendor
rejects any Purchase Order (or part thereof), it shall provide Newbridge the
reasons for rejection. If Vendor accepts a Purchase Order or part thereof,
Vendor shall provide Newbridge with an acknowledged ship date (the "Ship
Date"). Terms and conditions contained on either parties' pre-printed or
electronic purchase orders and/or order acknowledgements shall not apply.

6.3   RE-SCHEDULING. Newbridge may request the re-scheduling of an order or
any part thereof to a cumulative (for all re-schedules pertaining to that
order) maximum of [*] ([*]) days from the original Ship Date, at no
charge to Newbridge.

6.4   CANCELLATION. Newbridge may, at no charge cancel a Purchase Order (or
part thereof) up to [*] ([*]) days prior to the later of: the original Ship
Date, an alternative Ship Date agreed-to by the parties, or a Ship Date
delayed or rescheduled by Vendor. However, upon request from Vendor,
Newbridge agrees to discuss alternate cancellation rights for Purchase Orders
which greatly exceed forecasted amounts and current "run-rates" for the
Vendor Products in question.

6.5   INVOICING AND PAYMENT. Vendor shall issue an invoice on shipment of the
Vendor Product. Newbridge shall pay all amounts due to Vendor within forty
five (45) days of receipt of a correct invoice from Vendor.

7.    TITLE AND SHIPPING

Title without encumbrance, and with risk of loss or damage, to the Vendor
Products shall pass upon delivery to the carrier designated by Newbridge, or
if no carrier is designated by Newbridge, upon transfer to a carrier
reasonably chosen by Vendor.

8.    PRODUCT CHANGES

8.1   PRODUCT CHANGES. Vendor must provide ninety (90) days' prior written
notification to Newbridge if it intends to make any changes to any of the
Vendor Products. In no event, however, may such changes adversely affect the
Vendor Products their performance, features or functionality.

8.2   SOFTWARE RELEASE SUPPORT. In consideration for the Maintenance Fee,
Vendor shall support major releases of software for the Vendor Products in
accordance with Schedule D for a two year period. However, Newbridge may, at
no charge, require Vendor to continue to produce and support older versions
of the Vendor Products for specific Newbridge customers, for a reasonable
period of time.

8.3   MANUFACTURING. In no event shall Vendor discontinue the manufacture of
any of the Vendor Products during the term of this Agreement.

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8.4  REPAIRS; SPARES.  Vendor shall provide at its then-standard prices,
spare parts for and the capability for repairing, the Vendor Products for a
period of not less than [*] ([*]) years from the date of the last shipment of
Vendor Products to Newbridge. If, within the [*] ([*]) year period Vendor
fails to maintain such capability, Vendor shall provide functionally
equivalent products at a cost not to exceed the cost of the spare parts that
would have been required to repair the Vendor Products. Vendor's prices will
be no greater than Vendor's lowest price to any other customer in comparable
circumstances.

8.5  CONTINUING TECHNICAL SUPPORT.  Vendor shall continue to provide
technical support services to Newbridge for Vendor Products which have been
manufacturer discontinued, for a period of not less than [*] ([*]) years from
the date of the last shipment of Vendor Products to Newbridge.

9.   REPRESENTATIONS AND WARRANTIES

Vendor represents and warrants that:

     (a) if has the power and authority, and all rights, licenses and permits
     required, to execute this Agreement and to satisfy and perform its
     obligations and responsibilities set forth herein;

     (b) it will comply with all laws, regulations, reasonable practices and
     standards applicable to the obligations assumed by Vendor under this
     Agreement.

     (c) the Vendor Products will, by the time of sale to Newbridge, have
     received all necessary regulatory and/or type approvals, including but
     not limited to, UL, FCC and CSA approvals.

     (d) it assigns to Newbridge any rights needed by Newbridge to enforce
     any third party warranty (express or implied) on the Vendor Products.
     Vendor will upon notice from Newbridge use reasonable efforts to enforce
     the warranty on behalf of Newbridge.

     (e) Vendor will make best efforts to ensure that any Vendor Product
     which contains software will not contain "product keys", "expiry codes"
     or other codes or devices that may prevent Newbridge or its End Users
     from using the software at any time. The software, and the media on
     which the software is delivered, will not contain any "computer viruses"
     or any other programs that may affect the normal use of the software or
     any other software or data;

     (f) it will have title to the Vendor Products and/or the right to grant
     licenses with respect to them immediately prior to the passing of title
     to Newbridge; and

     (g) the Vendor Products, their use or distribution will not infringe any
     copyright, patent, trade secret, or other proprietary or contractual
     right or obligation.

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     (h) all Vendor Products and software provided or developed under this
     Agreement is designed to be used prior to, during, and after the
     calendar year 2000 A.D. without error, including but not limited to, any
     error relating to date data which represents or references a leap year,
     different centuries or more than one century.

10.  PRODUCT WARRANTY AND REPAIR PROCEDURE

10.1 PRODUCT WARRANTY.  Vendor further warrants to Newbridge that the Vendor
Products (excluding software which can be loaded into such hardware by a
Customer) will be free from defects in material and workmanship and will
function in accordance with the Documentation for a period of [*] ([*])
months from the date of shipment to Newbridge (the "Warranty Period"). Vendor
further warrants that the Vendor Product software will function in accordance
with the published specifications for a period of [*] ([*]) days after
delivery to a Newbridge End User of the Vendor Products. The [*] ([*])
month and [*] ([*]) day warranties shall be collectively referred to as the
"warranty period". During the Warranty Period, Vendor will, at no cost, make
all necessary repairs and replacements to maintain the Vendor Products in the
condition warranted.

10.2 REPAIR OR REPLACEMENT OPTION.  If Vendor is not able to rectify (repair
or replace) a defect in a Vendor Product within the time periods specified in
Schedule C it shall, at Newbridge's option, accept return of the defective
Vendor Products, and refund to Newbridge all amounts paid in respect thereof.

10.3 SUPPORT WARRANTY.  Vendor also warrants that the support services shall
be provided by appropriately trained personnel, in a competent and
professional manner. Vendor will exercise a professional standard of care in
performing its obligations under the Agreements and monitoring its
contractors in the performance of the obligations delegated to them.

10.4 REPAIR PROCEDURE.  Newbridge agrees to comply with Vendor's standard
repair procedure, as set out in Schedule B attached hereto.

11.  DISCLAIMER OF OTHER WARRANTIES

EXCEPT FOR THE WARRANTIES CONTAINED IN THIS AGREEMENT, VENDOR DISCLAIMS ALL
OTHER WARRANTIES ON THE VENDOR PRODUCTS, EXPRESS OR IMPLIED, INCLUDING BUT
NOT LIMITED TO, THE IMPLIED WARRANTIES OR MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE.

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12.  INFRINGEMENT

12.1 DEFENSE AND INDEMNITY.  Vendor will defend Newbridge, its distributors
and End Users against any claim, legal proceeding or demand alleging a Vendor
Product, its distribution or use, infringes any copyright, patent, trade
secret, or any other contractual or proprietary right (a "Claim"); provided
Vendor is notified of the Claim and is given authority to defend it. Vendor
will indemnify and hold Newbridge, its distributors and End Users harmless
from and against all costs, expenses, legal fees, third-party damages,
settlement amounts and other liabilities arising out of or in respect of a
Claim. This obligation will not cover: (i) any claim that arises solely out
of changes made to the Vendor Product at the request of Newbridge to meet
Newbridge's technical specifications; provided however, such claims do not
arise from Vendor's implementation of such specifications; (ii) any claims
that arise solely out of the use of hardware or software supplied by
Newbridge."

12.2 REMEDIES.  In the event Newbridge, its distributors or End Users are
enjoined from their use of any of the Vendor Products for any reason, Vendor
will promptly either:

     (a) procure for Newbridge and its distributors End Users the right to
     continue distributing and using the Vendor Product;

     (b) render the Vendor Product non-infringing without materially
     diminishing the Vendor Product's performance, functionality or features;

     (c) replace the Vendor Product with equivalent non-infringing goods; or

     (d) if the provisions of Sections 12.2(a) through 12.2(c) are not
     possible, having made best efforts, Vendor will remove the Vendor
     Products and refund Newbridge all amounts paid in respect thereof.

12.2 NOT APPLICABLE.  Section 13 ("Limitation of Liability") shall not apply
in any respect to Section 12.1.

13.  LIMITATION OF LIABILITY

13.1 LIMITATION.  EXCEPT FOR SECTION 12.1 ABOVE, NEITHER PARTY, THEIR
EMPLOYEES, AGENTS, OFFICERS OR DIRECTORS SHALL BE LIABLE IN ANY WAY
WHATSOEVER, FOR ANY INDIRECT, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES,
INCLUDING BUT NOT LIMITED TO, LOST PROFITS OR BUSINESS REVENUE, LOST
BUSINESS, FAILURE TO REALIZE EXPECTED SAVINGS, OR OTHER COMMERCIAL OR
ECONOMIC LOSS OF ANY KIND WHATSOEVER, WHETHER OR NOT SUCH DAMAGES ARE
FORESEEABLE OR EITHER PARTY, THEIR EMPLOYEES, AGENTS, OFFICERS OR DIRECTORS
HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EXCEPT FOR SECTION 12.1
ABOVE, IN NO EVENT SHALL EITHER PARTY'S LIABILITY TO THE OTHER UNDER THIS
AGREEMENT, OR ANY

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TRANSACTION CONTEMPLATED BY THIS AGREEMENT, EXCEED THE ACTUAL AMOUNT PAID BY
NEWBRIDGE TO VENDOR UNDER THIS AGREEMENT.

13.2 TRUST.  The foregoing provisions limiting the liability of Newbridge's
and Vendor's employees, agents, officers and directors shall be deemed to be
trust provisions for the benefit of such employees, officers, directors and
agents and shall be enforceable by such as trust beneficiaries.

14.  TERM; RENEWAL

Unless otherwise terminated in accordance with the provisions herein, this
Agreement shall remain in effect for a period of three (3) years from the
Effective Date (the "Initial Term"). Upon expiration of the Initial Term and
each Renewal Term thereafter, this Agreement will be automatically renewed
for an additional one (1) year term ("Renewal Term") unless notice of
non-renewal is given by either party upon sixty (60) days' notice pror to the
expiration of the Initial Term or any Renewal Term.

15.  TERMINATION

Either party may terminate this Agreement if:

     (a) the other party breaches any material term of this Agreement, and
     fails to remedy such breach within [*] ([*]) days of receiving notice
     to do so by the non-defaulting party;

     (b) any proceeding in bankruptcy, receivership, liquidation or
     insolvency is commenced against the other party or its property, and the
     same is not dismissed within thirty (30) days; or

     (c) the other party makes any assignment for the benefit of its
     creditors, becomes insolvent, commits any act of bankruptcy, ceases to
     do business as a going concern, or seeks any arrangement or compromise
     with its creditors under any statute or otherwise.

16.  EFFECT OF TERMINATION OR EXPIRY

In the event that this Agreement is terminated or expires for any reason:

     (a) Vendor shall process all Purchase Orders received from Newbridge
     prior to the effective date of termination or expiry, and shall accept
     all Purchase Orders made in accordance with this Agreement;

     (b) Newbridge and its distributors shall be entitled to continue to
     distribute any Vendor Products contained in their inventory on the
     effective date of termination, or Vendor Products subsequently received
     from Vendor;

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     (c) Neither party shall, by reason of the termination or expiry of this
     Agreement, be liable to the other for compensation, reimbursement or
     damages on account of the loss of prospective profits on anticipated
     sales, or on account of expenditures, investments, leases or commitments
     entered into or made in connection with the business or goodwill of the
     other.

     (d) Notwithstanding any other provision of this Agreement, no
     termination or expiry of this Agreement shall:

         (1) affect the rights of End Users to continue to use any Vendor
             Products;

         (2) affect the rights of End Users to continue to receive technical
             support services from Newbridge as may be contracted for prior
             to the effective date of termination of the Agreement; or

         (3) affect the rights of Newbridge to receive technical support
             services from Vendor as described herein, for the duration of
             any Customer contracts; and

17.  FORCE MAJEURE

Neither party shall be deemed to be in default of any provisions of this
Agreement for any failure in performance resulting from acts or events beyond
its reasonable control, including acts of God. Each party will use its best
efforts to anticipate such failures and to devise means to eliminate or
minimize them. But if a failure continues for more than [*] ([*]) days,
either party may terminate the Agreement immediately upon notice.

18.  MISCELLANEOUS

18.1 ASSIGNMENT.  Neither party shall assign or transfer any rights or
obligations under this Agreement without the prior written consent of the
other party, which consent shall not be unreasonably withheld or delayed.

18.2 GOVERNING LAW.  This Agreement shall be governed by the laws of the
Province of Ontario, Canada (except for its conflict of laws provisions), and
the parties hereby irrevocably submit to the non-exclusive jurisdiction of
the courts located in the Province of Ontario. The parties expressly exclude
from this Agreement all the provisions of the Vienna Convention, 1980 (The
United Nations Convention on Contracts for the International Sale of Goods).

18.3 SEVERABILITY.  The provisions of this Agreement shall be deemed
severable. If any provision of this Agreement shall be held unenforceable by
any court of competent jurisdiction, it shall be severed from this Agreement
and the remaining provisions shall remain in full force and effect.

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18.4 AMENDMENTS.  This Agreement shall not be amended or modified except in
writing signed by the parties hereto. No course of dealing or usage of trade
by or between the parties shall be deemed to effect any such amendment or
modification.

18.5 HEADINGS.  All headings and captions contained herein are for
convenience and ease of reference only and are not to be considered in the
construction or interpretation of any provision of this Agreement.

18.6 SECTIONS.  Numbered or lettered paragraphs, subparagraphs and schedules
contained in this Agreement refer to sections, subsections and schedules of
this Agreement.

18.7 SURVIVAL.  Sections 4.3, 4.11, 7.1, 8.4, 8.5, 9, 10, 11, 12, 13, 15, 16,
and 18 shall survive termination or expiry of this Agreement.

18.8 NOTICES.  Any notice required to be sent or given to Newbridge or
Newbridge shall be sent by certified or registered mail, return receipt
requested, addressed as follows:

     To Vendor:         Sonoma Systems, Inc.
                        4640 Admiralty Way, Suite 600
                        Marina Del Rey, CA 90292 USA
                        Attention: President

                        Tel. No. 310-828-3400
                        Fax No.  310-828-2255

     To Newbridge:      Newbridge Networks Corporation
                        P.O. Box 13600
                        600 March Road
                        Kanata, Ontario K2K 2E6
                        CANADA

                        Attention:  President

                        Tel. No.    (613) 591-3600
                        Fax No.     (613) 591-0002

     with a copy to the Legal Department, at the above address, Fax No. (613)
     591-0002.

18.9 WAIVERS.  Any consent by any party to, or waiver of, a breach by the
other, whether express or implied, shall not constitute a consent to, or a
waiver of any other, different or subsequent breach.

18.10 RELATIONSHIP.  Neither Newbridge nor Vendor shall represent that its
relationship with respect to the other party is other than as an independent
contractor. Nothing in

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this Agreement shall create in either party any right or authority to incur
any obligations on behalf of, or to bind in any respect, the other party and
nothing in this Agreement shall be construed to create any agency, joint
venture or partnership.

18.11 ENTIRE AGREEMENT; GOVERNING TERMS.  This Agreement constitutes the
entire agreement between the parties hereto with respect to the subject
matter hereof, and cancels and supersedes any prior understanding and
agreements between the parties relating thereto. There are no
representations, warranties, terms, conditions, undertakings or collateral
agreements, express, implied, statutory or otherwise between the parties,
except as expressly set forth in this Agreement.

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement.

NEWBRIDGE NETWORKS CORPORATION           SONOMA SYSTEMS, INC.

ANTHONY LAVIA                            STEVE M. WASZAK
----------------------------------       ----------------------------------
(Print)                                  (Print)

/s/ ANTHONY LAVIA                        /s/ STEVE M. WASZAK
----------------------------------       ----------------------------------
(Signature)                              (Signature)

V.P. & G.M., ATM NET                     V.P. FINANCE & CFO
----------------------------------       ----------------------------------
(Title)                                  (Title)

                                                                            13
<PAGE>

                                  CONFIDENTIAL

                                   SCHEDULE A

                                 VENDOR PRODUCTS

<TABLE>
<CAPTION>

                                                                                TRANSFER
  VENDOR PART                                                                    PRICE
    NUMBER                DESCRIPTION               LIST PRICE     DISCOUNT      ($USD)
    ------                -----------               ----------     --------      -----
<S>                  <C>                            <C>            <C>          <C>
8000 SA              Sonoma Base Unit,                $4,695          [*]%        $[*]
                     (single AC power supply)

8000 DA              Sonoma Base Unit,                $5,645          [*]%        $[*]
                     (dual AC power supplies)

8000 DD              Sonoma Base Unit,                $6,895          [*]%        $[*]
                     (dual DC power supplies)

8000 SW-TLX          Sonoma TLX Software              $2,000          [*]%        $[*]

8000 DS3ATM          DS3 ATM Card                     $3,000          [*]%        $[*]

8000 E3ATM           E3 ATM Card                      $3,000          [*]%        $[*]

8000 OC3ATM-MM       OC-3 c/STM-1  ATM Card           $4,000          [*]%        $[*]
                     (multi-mode fiber 0-2 KM)

8000 OC3ATM-SM       OC-3 c/STM-1  ATM Card           $6,000          [*]%        $[*]
                     (single-mode fiber 0-19 KM)

8000 OC3ATM-LR       OC-3 c/STM-1  ATM Card           $8,000          [*]%        $[*]
                     (single-mode fiber 12-30 KM)

8000 ENET            Ethernet Card (10Mbps)           $  300          [*]%        $[*]

8000 FAST ENET-1     Fast Ethernet Card               $  750          [*]%        $[*]
                     (10/100 Autosensing)

8000 FAST ENET-4     Four-port Ethernet Card          $3,000          [*]%        $[*]
                     (10/100 Autosensing)

8000 TRN             Token Ring Card (4/16 Mbps       $1,000          [*]%        $[*]
                     auto-sensing)

8000 FDDI-SAS        FDDI Single-Attach (SAS)         $5,000          [*]%        $[*]
                     Interface Card

8000 FDDI-DAS        FDDI Dual-Attach (DAS)           $8,000          [*]%        $[*]
                     Interface Card

8000 SBP             Spare Blanking Plates            $   50          [*]%        $[*]
                     (package of five)

8000RM-19            19" Rackmount Kit                $  250          [*]%        $[*]

8000RM-23            23" Rackmount Kit                $  250          [*]%        $[*]
</TABLE>

* CERTAIN CONFIDENTIAL INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                                                               1

<PAGE>

                                     CONFIDENTIAL

<TABLE>
<S>                  <C>                              <C>             <C>        <C>
8000 SUG             Sonoma Access User Guide         $   50          [*]%        $[*]

800 SUG-DISK         Sonoma Access User Guide on      $  100          [*]%        $[*]
                     Disk (w/HTML files)
</TABLE>

/s/ ANTHONY LAVIA                        /s/ STEVE M. WASZAK
---------------------------------        ----------------------------------
NEWBRIDGE                                VENDOR

* CERTAIN CONFIDENTIAL INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                                                               2

<PAGE>

                                  CONFIDENTIAL

                                   SCHEDULE B

                                AUTHORIZED AREAS

World-wide, including the following regions defined by Newbridge as:

-  NORTH AND SOUTH AMERICAN (NSA)
-  EUROPE, MIDDLE EAST AND AFRICA (EMA)
-  ASIA PACIFIC REGION, INCLUDING THE FORMER SOVIET UNION (APR)
as such may be amended by Newbridge from time to time.

/s/ ANTHONY LAVIA                        /s/ STEVE M. WASZAK
---------------------------------        ----------------------------------
NEWBRIDGE                                VENDOR

                                                                               1
<PAGE>

                              CONFIDENTIAL

                               SCHEDULE C

                      REPAIR AND RETURN PROCEDURE

1.   REPAIR PROCEDURE AND RETURN AUTHORIZATION

1.1  Vendor has a centralized repair facility for servicing of all Vendor
Products. All requests for return of Vendor Products shall be made to Vendor.
Vendor representatives will obtain all necessary information for processing
the return and shall issue Newbridge a return authorization number within one
(1) working days of receipt of Newbridge's request. No Vendor Product shall
be returned by Newbridge without prior verbal, electronic or written
authorization.

1.2  Vendor will escalate all requests for service of the third-party
equipment to the applicable third-party supplier. Repairs of the third-party
equipment will be completed by the third-party supplier.

1.3  Defective Vendor Products will be returned by Newbridge with the return
authorization number written clearly on the outside of the package, and
shipped prepaid to:

                   Sonoma Systems, Inc.
                   4640 Admiralty Way, Suite 600
                   Marina Del Rey, CA 90292 USA
                   Attention: Repair Department

2.   WARRANTY REPAIRS

2.1  Vendor will either repair or replace defective Vendor Products covered
under warranty within ten (10) working days of its receipt. The warranty
period for repaired or replaced Vendor Products shall be the remainder of the
original warranty or [*] ([*]) days, whichever is greater.

3.   OUT-OF-WARRANTY REPAIRS

3.1  Vendor will either repair or replace, at Newbridge's cost, defective
Vendor Products not covered under warranty, within ten (10) working days of
its receipt. Repair charges are available from Vendor's repair facility upon
request. The warranty on serviced Vendor Products is ninety days measured
from date of service. Out-of-warranty repair charges are based upon the
prices in effect at the time of return.

4.   ADVANCE REPLACEMENT SERVICE

Vendor agrees to hold a full set of spares for the Vendor Products at the
Vendor's facility in Phoenix Arizona, in order to provide 24 hour advance
replacement services to

* CERTAIN CONFIDENTIAL INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                                                             1
<PAGE>

                                CONFIDENTIAL

Newbridge. This is an emergency service for both in-warranty and
out-of-warranty Products that are not considered "dead on arrival" or an
"infant mortality". Upon request, Vendor will use commercially reasonable
efforts to ship replacement Products, via overnight courier, within one (1)
working day. In such an event, Newbridge shall issue a Purchase Order for the
replacement Products and will pay Vendor's then-current schedule of repair
charges, freight charges and a one hundred and fifty U.S. dollars ($150)
order expedite fee.

/s/ ANTHONY LAVIA                        /s/ STEVE M. WASZAK
---------------------------------        ----------------------------------
NEWBRIDGE                                VENDOR

                                                                             2
<PAGE>

                                 CONFIDENTIAL

                                  SCHEDULE D

                               SUPPORT SERVICES

1.   SUPPORT LEVELS AND INTERFACE DEFINITIONS

These provisions are to be used by Newbridge and Vendor personnel for the
support level that must be provided for any problem or issue before it can be
escalated to the next defined level.

The activities identified are the minimum required, and may be supplemented
by further actions during the course of the problem investigation in order to
expedite a resolution.

First and Second-Level Support will be provided by Newbridge for Newbridge
End Users who have purchased the products from Newbridge or its business
partners. Third-Level Support will be provided by Vendor to Newbridge and
directly to Newbridge End Users as deemed necessary by Newbridge.

1.1  FIRST-LEVEL NTAC (FRONT OFFICE) SUPPORT.  Newbridge will provide front
office TAC support and basic help desk functions to the End User. Typically
this will include initial call handling, call logging, assignment of call
priority (Emergency, High, Medium and Low) and queue placement. This will be
performed by either the Newbridge Technical Assistance Center (NTAC) or the
Newbridge Distributor/Service Agent.

The NTAC is the focal point for all operational activities and is the contact
point between the Customer and Newbridge. NTAC is staffed and operational
seven days a week, twenty-four hours a day, 365 days per year for first-level
front office support.

1.2  FIRST-LEVEL NTAC (BACK OFFICE) SUPPORT.  Newbridge will provide initial
product problem diagnostic services for identifying problems and generic
application faults, analysis, and where possible, problem resolution.

1.3  SECOND-LEVEL SUPPORT.  Newbridge will provide detailed product problem
analysis, as well as any problem duplication in the NTAC laboratory.
Second-Level Support will provide more detailed problem diagnostic services
for identifying complex problems and application faults that cannot be
resolved by First-Level Back Office Support. Second-Level Support will be
responsible for the application of any maintenance releases or End
User-specific fixes that Vendor Support will provide. Second-Level Support
will also provide interface and escalation to Vendor Third-Level Support as
required.

1.4  THIRD-LEVEL SUPPORT.  Vendor will provide Newbridge with 24 hours by 365
days per year access to a senior consultant, based in Vendor's facility, for
product design problem analysis, and to formally escalate the problem as
described in section 2.0 of this Schedule. Typical duties include, providing
reasonable levels of technical assistance to the First- and Second-Level
Support organizations and timely delivery of defect correction code and
associated documentation.

                                                                               1
<PAGE>

                              CONFIDENTIAL

1.5  ON-SITE SUPPORT.  Vendor will also provide Newbridge with on-site
support if a problem is determined by mutual consent of Vendor and Newbridge
to be a valid design problem and travel is necessary. Vendor will provide for
travel and per diem at no charge to Newbridge. However, Newbridge may also
require Vendor to perform such on-site support, for which Newbridge will pay
in accordance with the current published Vendor Time, Materials and Expense
rates.

1.6  INSTALLATION.  Newbridge will arrange for installation services at the
End User site. Newbridge may require Vendor to perform such installation, for
which Newbridge will pay in accordance with the Vendor's current published
Time, Materials and Expense rates.

1.7  VENDOR CONTACTS FOR SERVICES.  The parties will notify each other of
their points of contact, for any of the Vendor support services. As well, the
parties will complete and keep up to date Newbridge's "OEM Product Matrix".
The Vendor center in Marina Del Rey currently serves as the focal point for
all Vendor service activities. The Vendor center will be staffed and
operational as described in section 2.0 of this Schedule.

2.   PROBLEM ESCALATION

2.1  ESCALATION PROCESS.

     (a) Following identification by Newbridge of a problem that cannot be
     resolved by the regional First and Second Line support as described
     above, Newbridge will record details of the problem (including
     diagnostic information) and forward this information to Vendor.

     (b) Newbridge will be given a problem report number and will be provided
     with regular status and progress updates of Newbridge-escalated
     problems. A Newbridge representative will also be entitled to attend (in
     person or phone conference) the regular Vendor problem status and review
     meetings.

2.2  PROBLEM PRIORITY DEFINITIONS.  Four classifications of requests for
information or assistance are defined. In order to classify a request,
Newbridge technical support personnel will confirm with Vendor the impact
of the problem to determine an appropriate classification. Where parties
disagree on the classification of a particular problem, the Vendor and
Newbridge primary technical contacts will undertake to discuss the problem
with a view to reaching a mutually acceptable classification.

     2.2.1  EMERGENCY PRIORITY.  Problems that have been verified through
     formal maintenance channels as problems affecting service, which cause
     major functionality to be inoperative and therefore affect the normal
     business operations during the normal working day. There is no
     acceptable work around. To ensure the fastest possible response,
     problems classified as Emergency will be reported via telephone.

                                                                             2
<PAGE>

                                 CONFIDENTIAL

     2.2.2  HIGH PRIORITY.  Problems that have been verified through the
     formal maintenance channels as problems affecting service which cause
     major functionality to be inoperative and therefore affect the normal
     business operations during the normal working day. There is an
     acceptable work around.

     2.2.3  MEDIUM PRIORITY.  Problems that have been verified through the
     formal maintenance channels as causing particular features or
     functionality to be inoperative, but do not affect the normal business
     operations during the normal working day. There is no acceptable work
     around.

     2.2.4  LOW PRIORITY.  Problems that have been verified through the
     formal maintenance channels as causing particular features or
     functionality to be inoperative, but do not affect the normal business
     operations during the normal working day. There is an acceptable work
     around.

2.3  TIME-SCALE OBJECTIVES.  In order for Newbridge to offer support services
to its distributors and End Users, Vendor will use best endeavors to meet the
following response, progress and restore time objectives. If these
time-scales cannot be met, Vendor will immediately notify Newbridge and
Vendor and Newbridge primary technical contacts will undertake to discuss the
problem with a view to reaching a mutually acceptable solution.

     2.3.1  RESPONSE TIME.  The time from when Newbridge makes a request for
     a problem to be escalated and Vendor responds to the request. The
     response times are classified as:

     -  Emergency    -  One hour, 24 hours a day, 7 days a week
     -  High         -  Two hours, during normal business hours
     -  Medium       -  One business day
     -  Low          -  Two business days

     2.3.2  PROGRESS TIME.  Newbridge may contact Vendor at any interval for
     any problem to solicit update information. The time between Vendor
     making the initial response to Newbridge and providing unsolicited
     updates, by telephone or fax to the request for information or
     assistance are as follows:

     -  Emergency    -  One call every business day
     -  High         -  One call every two business days
     -  Medium       -  One call every working week
     -  Low          -  One call every working month

     2.3.3  RESTORE TIME.  The time between Vendor receiving and accepting
     the problem from Newbridge and the delivery of an acceptable work around
     (or fix) for the problem:

                                                                             3
<PAGE>

                                 CONFIDENTIAL

     -  Emergency    -  Vendor will use all best efforts and resources at its
                        disposal to ensure problem is resolved as soon as
                        possible, but not to exceed twenty four (24) hours
                        from receiving the problem from Newbridge.
     -  High         -  within the next maintenance release, which will be
                        issued no later than eight weeks after diagnosis.
     -  Medium       -  less than 6 months
     -  Low          -  less than 6 months

     2.3.4  DEFECT FIX TIME.  The time between Vendor receiving and accepting
     the problem from Newbridge and the delivery of an acceptable, final fix
     for the problem:

     -  Emergency    -  less than 1 month
     -  High         -  less than 3 months or within next maintenance release
                        whichever is shorter
     -  Medium       -  less than 6 months
     -  Low          -  less than 12 months

3.   SUPPORT FOR THIRD-PARTY EQUIPMENT

3.1  PRODUCTS SUPPORTED.  Newbridge will provide support services, as
described in this Schedule, for the Vendor Products, with the exception of
products not manufactured or created by Vendor ("Third Party Equipment").

3.2  SUPPORT FOR THIRD PARTY EQUIPMENT.  Support services for Third Party
Equipment will be provided directly by the appropriate third party supplier.

3.3  THIRD PARTY EQUIPMENT PROBLEM ESCALATION.  Problems with Third Party
Equipment will be escalated by Vendor to the appropriate third party
supplier. Upon completion of the problem fix, the third party supplier will
provide Vendor with a written report detailing the problem fix and time.
Vendor will be responsible for updating and closing the PTS after a Third
Party Equipment fix.

/s/ ANTHONY LAVIA                        /s/ STEVE M. WASZAK
---------------------------------        ----------------------------------
NEWBRIDGE                                VENDOR

                                                                             4
<PAGE>

                                 CONFIDENTIAL

                                   SCHEDULE E

                          REGIONAL AMENDMENT - APR REGION

The following amendments to the OEM Reseller Agreement apply to the APR
region only.

In the event of any conflict or inconsistency between the terms of the OEM
Reseller Agreement and this Schedule E, the terms of this Schedule E shall
prevail. Except as specifically and to the extent modified by this Schedule E
all of the terms and provisions of the OEM Reseller Agreement shall continue
to remain in full force and effect.

NOT APPLICABLE.

                                                                             1
<PAGE>

                                  CONFIDENTIAL

                                   SCHEDULE F

                          REGIONAL AMENDMENT - EMA REGION

The following amendments to the OEM Reseller Agreement apply to the EMA
region only.

In the event of any conflict or inconsistency between the terms of the OEM
Reseller Agreement and this Schedule F, the terms of this Schedule F shall
prevail. Except as specifically and to the extent modified by this Schedule F
all of the terms and provisions of the OEM Reseller Agreement shall continue
to remain in full force and effect.

NOT APPLICABLE.

                                                                             1
<PAGE>

                                  CONFIDENTIAL

                                   SCHEDULE G

                          REGIONAL AMENDMENT - NSA REGION

The following amendments to the OEM Reseller Agreement apply to the NSA
region only.

In the event of any conflict or inconsistency between the terms of the OEM
Reseller Agreement and this Schedule G, the terms of this Schedule G shall
prevail. Except as specifically and to the extent modified by this Schedule G
all of the terms and provisions of the OEM Reseller Agreement shall continue
to remain in full force and effect.

NOT APPLICABLE.

                                                                             1
<PAGE>

                                 CONFIDENTIAL

                   AMENDMENT NO. 1 TO OEM RESELLER AGREEMENT

This Amendment No. 1 (this "Amendment") made as of the 29 day of May, 1998
supplements and amends the terms and conditions of the OEM Reseller Agreement
(the "Reseller Agreement"), dated September 17, 1997, between Sonoma Systems,
Inc. ("Sonoma") and Newbridge Networks Corporation ("Newbridge"). All
capitalised terms used herein, but not defined, shall have the respective
meanings assigned to such terms in the Agreement, as amended.

Sonoma and Newbridge agree as follows:

I.   AMENDMENT.

1.   Section 1(g) of the Reseller Agreement, Definitions, is hereby amended
and restated to read in its entirety as follows:

     "1(g)  "Vendor Products" shall mean the items listed in Schedule "A"
     hereto, as well the 45020 Network Element Management System descriptors
     described in Section 4.12 below."

2.   A new section 4.12 is added to the Reseller Agreement, as follows:

     "4.12  45020 DESCRIPTORS.  Upon completion of Vendor's development of
     certain 45020 Network Element Management System descriptors, Vendor
     grants Newbridge a non-exclusive, royalty-free, irrevocable and
     perpetual license to use, copy, modify and distribute such descriptors."

3.   A new section 2.3 is added to the Reseller Agreement, as follows:

     "2.3  NEWBRIDGE PRIVATE LABEL.

     (a) Notwithstanding anything herein contained to the contrary, Newbridge
     will "private label" the Vendor Products, including marketing, licensing
     and distributing the Vendor Products:  (i) without Vendor trademarks,
     tradenames and/or service marks; and (ii) under different trademarks,
     tradenames and/or service marks, including without limitation, "36060
     MainstreetXpress", or other Newbridge trademarks, tradenames and/or
     service marks (collectively the "Marks").

     (b) Newbridge shall be responsible for specification of the product and
     packaging labels for such private-labeled Vendor Products, including
     CLEI codes (collectively the "Labels"). Vendor shall be responsible for
     manufacturing of the Labels, and the labelling of the Vendor Products
     with them. Vendor shall make no other use of the Labels or Marks. Vendor
     shall promptly return to Newbridge or destroy any excess or unused
     Labels.

<PAGE>

                                                                        Page 2

                                     CONFIDENTIAL

     (c) Other than the limited right to manufacture the Labels with the
     Marks for the benefit of Newbridge in section 2.3(b), Vendor shall have
     no right, title, or interest in the Marks or Labels. Any Vendor Products
     labeled with the Labels will be for the sole benefit of Newbridge, and
     shall not be provided by Vendor to any other person or entity, except
     for Siemens AG, under separate agreement.

     (d) Newbridge or its subsidiaries shall not consider new affiliations
     with entities or introduction of products directly competitive with the
     36060 MainstreetXpress in the modular ATM access product area for
     exclusive delivery of managed Ethernet, Token Ring and/or FDDI LAN VPN
     services over [ILLEGIBLE] T1/E1 IMA, DS-3/E3 and/or OC3-3/STM-1 ATM
     interfaces during the term of this Agreement, without providing Vendor
     reasonable advance notice and considering, in good faith with Vendor,
     the opportunity for 36060 products to full address Newbridge's
     requirements within the WAN access products area."

4.   A new section 18.12 is added to the Reseller Agreement, as follows:

     "18.12 ESCROW.

     Vendor agrees to promptly place a copy of the source code for each of
     the Vendor Products (as well as all associated documentation and
     programmer materials, defect correction code and upgrades) (collectively
     the "Escrowed Materials") in escrow with a mutually agreed upon escrow
     agent. The parties shall negotiate in good faith the terms and
     conditions of the escrow agreement. However, the parties agree that the
     escrow agreement shall include the following terms:

           (i)   Newbridge shall be responsible for the payment of the fees
           of the escrow agent.

           (ii)  Newbridge shall be entitled to receive a copy of the
           Escrowed Materials from the escrow agent if:

                 (1) Vendor breaches any material term of the Reseller
                 Agreement, and fails to remedy such breach within [*]
                 ([*]) days of receiving written notice to do so by Newbridge;

                 (2) any proceeding in bankruptcy, receivership, liquidation
                 or insolvency is commenced against Vendor or its property,
                 and the same is not dismissed within thirty (30) days; or

                 (3) Vendor makes any assignment for the benefit of its
                 creditors, becomes insolvent, commits any act of bankruptcy,
                 ceases to do business as a going concern, or seeks any
                 arrangement or compromise with its creditors under any
                 statute or otherwise.

* CERTAIN CONFIDENTIAL INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                                                        Page 3

                                  CONFIDENTIAL

           (iii) Upon release of the Escrowed Materials from escrow,
           Newbridge shall be entitled to use the Escrowed Materials to:

                 (1) provide maintenance and support (including without
                 limitation any necessary correction of errors) to its
                 customers; and

                 (2) modify the Vendor Products, as required to satisfy
                 functionality commitments made by Newbridge to existing or
                 prospective customers prior to the occurrence of the event
                 described in Section 18.12(a)(ii) which triggered the
                 release of the Escrowed Materials, which modifications have
                 been agreed to by Vendor in writing.

           However, if the Escrowed Materials were released due to
           subsections (ii)(2) or (ii)(3) above, then Newbridge shall also be
           granted a non-exclusive, non-transferable, unrestricted license to
           use, copy, modify and distribute the Escrowed Materials. In
           consideration for such license, Newbridge shall pay Vendor a
           royalty of [*] percent ([*]%) of the greater of: (1) the
           Transfer Price for such product; or (2) the Average Net Revenue
           for each Vendor Product manufactured and distributed under this
           Section 18(iii). For purposes of this Agreement, "Average Net
           Revenue" shall mean the average price at which Newbridge sells a
           particular Vendor Product, less any: (i) duties, (ii) sales,
           value-added, and excise taxes, and (ii) returned Vendor Products."

5.   Section 18.7 of the Reseller Agreement, SURVIVAL, is hereby amended and
restated to read in its entirety as follows:

     "18.7  SURVIVAL.  Sections 4.3, 4.11, 4.12, 7.1, 8.4, 8.5, 9, 10, 11,
     12, 13, 15 16 and 18 shall survive termination or expiry of this
     Agreement."

6.   Schedule A to the Reseller Agreement, VENDOR PRODUCTS, is hereby amended
and restated to read in its entirety as set forth in the attached Schedule A.

7.   Section 8.1 of the Reseller Agreement, Product Changes, is hereby
amended and restated to read in its entirety as follows:

     Vendor shall comply to Newbridge's process for product change control.
Vendor must provide ninety (90) days' prior written notification to Newbridge
if it intends to make any changes to any of the Vendor Products. In no event,
however, may such changes adversely affect the Vendor Products, their
performance, features or functionality.

* CERTAIN CONFIDENTIAL INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                                                        Page 4

                                  CONFIDENTIAL

II.  EFFECT OF AMENDMENT.

     In the event of any conflict or inconsistency between the terms of this
Amendment and the Reseller Agreement, the terms of this Amendment shall
prevail. Except as specifically and to the extent modified by this Amendment,
all of the provisions of the Reseller Agreement shall continue to remain
unchanged and in full force and effect.

IN WITNESS WHEREOF the parties have duly executed this Amendment.

SONOMA SYSTEMS CORPORATION               NEWBRIDGE NETWORKS CORPORATION

By:  /s/ STEVE M. WASZAK                 By:  /s/ CONRAD LEWIS
     ------------------------------           ------------------------------

Name:  STEVE M. WASZAK                   Name:  CONRAD LEWIS
       ----------------------------             ----------------------------

Title:  VP Finance & Operations          Title:  EVP Marketing &
        Chief Financial Officer                  Business Units
<PAGE>

                                   CONFIDENTIAL

                                     SCHEDULE A

                                  VENDOR PRODUCTS

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
NNC PART            NNC PART NAME       SONOMA PART         SONOMA MODEL           SANOMA           NEWBRIDGE           NEWBRIDGE
NUMBER                                  NUMBER              NUMBER                 LIST (US)        DISCOUNT            TRANSFER
-----------------------------------------------------------------------------------------------------------------------------------

<S>                 <C>                 <C>                 <C>                    <C>              <C>                 <C>
-----------------------------------------------------------------------------------------------------------------------------------
BASIC SYSTEMS
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
90-5993-11          NRED 110 VAC        1010811-01          SONOMA MLSU SA         $4,695           [*]%                 $[*]
                    BASIC SYSTEM                            115V
-----------------------------------------------------------------------------------------------------------------------------------
90-5993-11-03       NRED 110 VAC        1010811-01-03       SONOMA MLSU SA         $4,695           [*]%                 $[*]
                    BASIC SYSTEM                            115V (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-4616-01          NRED 240 VAC        1010811-02          SONOMA MLSU SA         $4,695           [*]%                 $[*]
                    BASIC SYSTEM                            230V
-----------------------------------------------------------------------------------------------------------------------------------
90-5994-11          RED AC BASIC        1010812-01          SONOMA MLSU DA         $5,645           [*]%                 $[*]
                    SYSTEM
-----------------------------------------------------------------------------------------------------------------------------------
90-5994-11-03       RED AC BASIC        1010812-01-03       SONOMA MLSU DA         $5,645           [*]%                 $[*]
                    SYSTEM                                  (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-5995-11          RED DC BASIC        1010813-02          SONOMA MLSU DD         $5,995           [*]%                 $[*]
                    SYSTEM
-----------------------------------------------------------------------------------------------------------------------------------
90-5995-11-03       RED DC BASIC        1010813-02-03       SONOMA MLSU DD         $5,995           [*]%                 $[*]
                    SYSTEM                                  (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
LAN ADAPTATION CARDS
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
90-5996-01          10 MBS ETHERNET     1600811-01          8000 ENET              $300             [*]%                 $[*]
                    CARD
-----------------------------------------------------------------------------------------------------------------------------------
90-5996-01-03       10 MBS ETHERNET     1600811-01-03       8000 ENET (CLEI)       $300             [*]%                 $[*]
                    CARD
-----------------------------------------------------------------------------------------------------------------------------------
90-5996-02          10/100 MBS          1600815-01          8000 FAST ENET-1       $750             [*]%                 $[*]
                    ETHERNET CARD
-----------------------------------------------------------------------------------------------------------------------------------
90-5996-02-03       10/100 MBS          1600815-01-03       8000 FAST ENET-1       $750             [*]%                 $[*]
                    ETHERNET CARD                           (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-5996-03          4 PROT 10/100 MBS   1600817-01          8000 FAST ENET-4       $3,000           [*]%                 $[*]
                    ETHERNET CARD
-----------------------------------------------------------------------------------------------------------------------------------
90-5996-03-03       4 PROT 10/100 MBS   1600817-01-03       8000 FAST ENET-4       $3,000           [*]%                 $[*]
                    ETHERNET CARD                           (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-5997-01          TOKEN RING CARD     1600814-01          8000 TRN               $1,000           [*]%                 $[*]
-----------------------------------------------------------------------------------------------------------------------------------
90-5997-01-03       TOKEN RING CARD     1600814-01-03       8000 TRN (CLEI)        $1,000           [*]%                 $[*]
-----------------------------------------------------------------------------------------------------------------------------------
90-5998-01          SAS FDDI CARD       1600818-01          8000 FDDI-SAS          $5,000           [*]%                 $[*]
-----------------------------------------------------------------------------------------------------------------------------------
90-5998-01-03       SAS FDDI CARD       1600818-01-03       8000 FDDI-SAS (CLEI)   $5,000           [*]%                 $[*]
-----------------------------------------------------------------------------------------------------------------------------------
90-5998-02          DAS FDDI CARD       1600819-01          8000 FDDI-DAS          $8,000           [*]%                 $[*]
-----------------------------------------------------------------------------------------------------------------------------------
90-5998-02-03       DAS FDDI CARD       1600819-01-03       8000 FDDI-DAS (CLEI)   $8,000           [*]%                 $[*]
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
ATM TRANSMISSION CARDS
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
90-6001-11          DS-3 ATM CARD 2     1600808-02          ENH DS3 ATM            $3000            [*]%                 $[*]
-----------------------------------------------------------------------------------------------------------------------------------
90-6001-11-03       DS-3 ATM CARD 2     1600808-02-03       ENH DS3 ATM (CLEI)     $3000            [*]%                 $[*]
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

* CERTAIN CONFIDENTIAL INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                                                          Page 6

                                     CONFIDENTIAL
<TABLE>

<S>                 <C>                 <C>                 <C>                   <C>               <C>                 <C>
-----------------------------------------------------------------------------------------------------------------------------------
90-5999-11          E3 ATM CARD 2       1600808-03          ENH 3E ATM             $3,000           [*]%                 $[*]
-----------------------------------------------------------------------------------------------------------------------------------
90-6002-11          OC-3/STM-1 ATM      1600830-02          ENH OC3 ATM SM-IR      $6,000           [*]%                 $[*]
                    CARD 2
-----------------------------------------------------------------------------------------------------------------------------------
90-6002-11-03       OC-3/STM-1 ATM      1600830-02-03       ENH OC3 ATM SM-IR      $6,000           [*]%                 $[*]
                    CARD 2                                  (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-6002-12          OC-3/STM-1 LR ATM   1600830-03          ENH OC3 ATM SM-        $8,000           [*]%                 $[*]
                    CARD 2                                  LR
-----------------------------------------------------------------------------------------------------------------------------------
90-6002-12-03       OC-3/STM-1 LR ATM   1600830-03-03       ENH OC3 ATM SM-        $8,000           [*]%                 $[*]
                    CARD 2                                  LR (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-6002-13          OC-3/STM-1 MMF      1600830-01          ENH 0C3 ATM MM         $4,000           [*]%                 $[*]
                    ATM CARD 2
-----------------------------------------------------------------------------------------------------------------------------------
90-6002-13-03       OC-3/STM-1 MMF      1600830-01-03       ENH 0C3 ATM MM         $4,000           [*]%                 $[*]
                    ATM CARD 2                              (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
90-6003-01          19" RACKMOUNT       1006801-01          8000 RM-19             $250             [*]%                 $[*]
                    ADAPTER
-----------------------------------------------------------------------------------------------------------------------------------
90-6003-01-03       19" RACKMOUNT       1006801-01-03       8000 RM-19 (CLEI)      $250             [*]%                 $[*]
                    ADAPTER
-----------------------------------------------------------------------------------------------------------------------------------
90-6003-02          23" RACKMOUNT       1006802-01          8000 RM-23             $250             [*]%                 $[*]
                    ADAPTER
-----------------------------------------------------------------------------------------------------------------------------------
90-6003-02-03       23" RACKMOUNT       1006802-01-03       8000 RM-23 (CLEI)      $250             [*]%                 $[*]
                    ADAPTER
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
SPARES
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
90-6004-01          BLANKING PLATES     1700716-01          8000 SBP               $50              [*]%                 $[*]
                    (5 PACK)
-----------------------------------------------------------------------------------------------------------------------------------
90-6004-01-03       BLANKING PLATES     1700716-01-03       8000 SBP (CLEI)        $50              [*]%                 $[*]
                    (5 PACK)
-----------------------------------------------------------------------------------------------------------------------------------
90-4407-01          NREED AC SYS PSU    1222044-00          SINGLE AC POWER        $595             [*]%                 $[*]
                                                            SUPPLY
-----------------------------------------------------------------------------------------------------------------------------------
90-4407-01-03       NREED AC SYS PSU    1222044-00-03       SINGLE AC POWER        $595             [*]%                 $[*]
                                                            SUPPLY (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-4408-01          RED AC SYS PSU      1505807-01          DUAL AC POWER          $3,895           [*]%                 $[*]
                                                            SUPPLY
-----------------------------------------------------------------------------------------------------------------------------------
90-4408-01-03       RED AC SYS PSU      1505807-01-03       DUAL AC POWER          $3,895           [*]%                 $[*]
                                                            SUPPLY (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-4409-01          RED DC SYS PSU      1505809-01          DUAL DC POWER          $4,395           [*]%                 $[*]
                                                            SUPPLY
-----------------------------------------------------------------------------------------------------------------------------------
90-4409-01-03       RED DC SYS PSU      1505809-01-03       DUAL DC POWER          $4,395           [*]%                 $[*]
                                                            SUPPLY (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-4410-01          BASIC SYSTEM        1505801-01          SYSTEM FAN             $250             [*]%                 $[*]
                    INTAKE FAN                              ASSEMBLY
-----------------------------------------------------------------------------------------------------------------------------------
90-4410-01-03       BASIC SYSTEM        1505801-01-03       SYSTEM FAN             $250             [*]%                 $[*]
                    INTAKE FAN                              ASSEMBLY (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-4411-01          BASIC SYSTEM        1701021-00          CPU FAN ASSEMBLY       $250             [*]%                 $[*]
                    PROCESSOR FAN
-----------------------------------------------------------------------------------------------------------------------------------
90-4411-01-03       BASIC SYSTEM        1701021-00-03       CPU FAN ASSEMBLY       $250             [*]%                 $[*]
                    PROCESSOR FAN                           (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-4412-01          BASIC SYSTEM        1510800-01          INTEL                  $3,995           [*]%                 $[*]
                    MOTHERBOARD                             MOTHERBOARD
                                                            ASSEMBLY
-----------------------------------------------------------------------------------------------------------------------------------
90-4412-01-03       BASIC SYSTEM        1510800-01-03       INTEL                  $3,995           [*]%                 $[*]
                    MOTHERBOARD                             MOTHERBOARD
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

* CERTAIN CONFIDENTIAL INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                                                          Page 7

                                     CONFIDENTIAL

<TABLE>

<S>                 <C>                <C>                  <C>                  <C>                <C>
-----------------------------------------------------------------------------------------------------------------------------------
                                                            ASSEMBLY (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-4413-01          BASIC SYSTEM        1111091-01          8 MB SIMM (2PACK)      $400             [*]%                 $[*]
                    MEMORY (16 MB)
-----------------------------------------------------------------------------------------------------------------------------------
90-4413-01-03       BASIC SYSTEM        1111091-01-03       8 MB SIMM (2PACK)      $400             [*]%                 $[*]
                    MEMORY (16 MB)                          (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-4414-01          CONTROL CARD        1600802-03          SYSTEM CONTROL         $2,595           [*]%                 $[*]
                                                            CARD
-----------------------------------------------------------------------------------------------------------------------------------
90-4414-01-03       CONTROL CARD        1600802-03-03       SYSTEM CONTROL         $2,595           [*]%                 $[*]
                                                            CARD (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------
90-4415-01          MANAGEMENT          1319296-00          MANAGEMENT             $120             [*]%                 $[*]
                    CABLES                                  CABLES
-----------------------------------------------------------------------------------------------------------------------------------
90-4415-01-03       MANAGEMENT          1319296-00-03       MANAGEMENT             $120             [*]%                 $[*]
                    CABLES                                  CABLES (CLEI)
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
36060 APPLICATION SOFTWARE
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
90-6000-20          R 2.0 SYSTEM        1006804-20          R 2.0 NN               $2,000           [*]%                 $[*]
                    SOFTWARE                                OPERATIONAL
                                                            IMAGE
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
36060 DOCUMENTATION
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
90-6005-20          R 2.0 TECHNICAL     1006816-20          36060 TECH             $100             [*]%                 $[*]
                    PRACTICES                               PRACTICES V2.0
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

* CERTAIN CONFIDENTIAL INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.<PAGE>

                                                               CUSTOMER NO. 1148

                           FIRST AMENDMENT TO MASTER
                          LOAN AND SECURITY AGREEMENT

     THIS FIRST AMENDMENT to MASTER LOAN AND SECURITY AGREEMENT (the
"Amendment"), dated as of June 7, 1999, by and between SONOMA SYSTEMS, INC.
(the "Borrower"), a California Corporation, having its principal place of
business and chief executive office at 4640 Admiralty Way, Suite 600, Marina
del Ray, California, 90292, and TRANSAMERICA BUSINESS CREDIT CORPORATION (the
"Lender"), a Delaware Corporation, having its principal office at Riverway II,
West Office Tower, 9399 West Higgins Road, Rosemont, Illinois, 60018.

                              W I T N E S S E T H

     WHEREAS, the Borrower and the Lender are parties to a Master Loan and
Security Agreement, dated as of July 8, 1998 (as amended, the "Loan Agreement";
capitalized terms used herein shall have the meanings assigned to such terms in
the Loan Agreement unless otherwise defined herein); and

     WHEREAS, the parties hereto desire to amend the Loan Agreement in the
manner set forth herein.

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the Borrower and Lender hereby agree as follows:

     1.     AMENDMENT TO LOAN AGREEMENT.  Effective as of the date this
Amendment is fully executed by the Lender and Borrower hereof, and subject to
the satisfaction of the Borrower of conditions as determined by Lender, the
Loan Agreement is hereby amended as follows:

            (a)     Section 3.1, Borrowings, is hereby deleted in its entirety
and the following is inserted in lieu thereof:

            SECTION 3.1.  BORROWINGS. Each Loan shall be in an amount not less
than $50,000, and in no event shall the sum of the aggregate Loans made exceed
the amount of the Lender's written commitment to the Borrower in effect from
time to time. Notwithstanding anything herein to the contrary, the Lender shall
be obligated to make the initial Loan and each other Loan only after the
Lender, in its sole discretion, determines that the applicable conditions for
borrowing contained in Sections 3.3 and 3.4 are satisfied. The timing and
financial scope of Lender's obligation to make Loans hereunder are limited as
set forth in a commitment letter executed by Lender and Borrower, dated as of
June 12, 1998 and May 21, 1999 and attached hereto as EXHIBITS A AND B
(collectively the "Commitment Letters").

            (b)     The definitions of "Loan Documents" and "Obligations" are
deleted in their entirety and the following definitions are inserted in lieu
thereof, respectively:

            LOAN DOCUMENTS shall mean, collectively, this Agreement, the Notes,
and all other present and future documents, agreements, certificates,
instruments, and opinions delivered by the Borrower under, in connection with
or relating to this Agreement, or any other present or future instrument or
agreement between Lender and Borrower, as each of the same may be amended,
modified, extended, restated or supplemented from time to time.

            OBLIGATIONS shall mean and include all loans (including the Loans),
advances, debts, liabilities, obligations, covenants and duties owing by
Borrower to Lender of any kind or nature, present or future, whether or not
evidenced by the Note or any note, guaranty or other instrument, whether or not
arising under or in connection with, this Agreement, any other Loan Document or
any other present or future instrument or agreement, whether or not for the
payment of money, whether arising by reason of an extension of credit, opening,
guaranteeing or confirming of a letter of credit, loan, guaranty,
indemnification or in any other manner, whether direct or indirect (including
those acquired by assignment, purchase, discount or otherwise), whether
absolute or contingent, due or to become due, now due or hereafter arising and
however acquired (including without limitation all loans previously made by

                                  -1-

<PAGE>

Lender to Borrower). The term includes, without limitation, all interest
(including interest accruing on or after an bankruptcy, whether or not an
allowed claim), charges, expenses, commitment, facility, closing and
collateral management fees, letter of credit fees, reasonable attorneys'
fees, taxes and any other sum properly chargeable to Borrower under this
Agreement, the other Loan Documents or any other present or future agreement
between Lender and Borrower.

            (c)     In Section 3.3, Conditions to Initial Loan, subsection
(v) is hereby deleted in its entirety and the following inserted in lieu
thereof:

            (v)     a certificate of the Secretary or an Assistant Secretary
of the Borrower ("Secretary's Certificate") certifying (A) that attached to
the Secretary's Certificate is a true, complete, and accurate copy of the
resolutions of the Board of Directors of the Borrower (or a unanimous consent
of directors in lieu thereof) authorizing the execution, delivery, and
performance of this Agreement, the other Loan Documents, and the transactions
contemplated hereby and thereby, and that such resolutions have not been
amended or modified since the date of such certification and are in full
force and effect; (B) the incumbency, names, and true signatures of the
officers of the Borrower authorized to sign the Loan Documents to which it is
a party; (C) that attached to the Secretary's Certificate is a true and
correct copy of the Articles or Certificate of Incorporation of the Company,
as amended, which Articles or Certificate of Incorporation have not been
further modified, repealed or rescinded and are in full force and effect; (D)
that attached to the Secretary's Certificate of the Borrower is a true and
correct copy of the Bylaws, as amended, which Bylaws of the Company have not
been further modified, repealed or rescinded and are in full force and
effect; and (E) that attached to the Secretary's Certificate is a valid
Certificate of Good Standing issued by the Secretary of the State of the
Borrower's state of incorporation; and

     2.     REPRESENTATIONS AND WARRANTIES OF THE BORROWER. The Borrower
represents and warrants as follows:

            (a)     Since July 8, 1998, there has occurred no development,
event or change that has had or could reasonably be expected to have a
Material Adverse Effect.

            (b)     No Default or Event of Default has occurred and is
continuing.

            (c)     The representations and warranties of such Borrower
contained in Section 4.1 of the Loan Agreement are true and correct in all
material respects on the date hereof as though made on and as the date
hereof, except to the extent that such representation and warranties
expressly relate solely to an earlier date (in which case such
representations and warranties were true and correct on and as of such
earlier date).

            (d)     This Amendment constitutes the legal, valid and binding
obligation of such Borrower, enforceable against the Borrower in accordance
with its terms, except as enforceability may be limited by bankruptcy,
insolvency and other laws affecting creditors' rights generally and by
general principles of equity.

     3.     EXPENSES.     The Borrower shall pay for all of the reasonable
costs and expenses incurred by the Lender in connection with the transactions
contemplated by the Amendment, including, without limitation, the reasonable
fees and expenses of counsel to the Lender.

     4.     MISCELLANEOUS.

            (a)     Except as expressly amended herein, all of the terms and
provisions of the Loan Agreement and the other Loan Documents are ratified
and confirmed in all respects and shall remain in full force and effect.

            (b)     Upon the effectiveness of this Amendment, all references
in the Loan Documents to the Loan Agreement shall mean the Loan Agreement as
amended by this Amendment and all references in the Loan Agreement to the
"this Agreement", "hereof", "herein", or similar terms, shall mean and refer
to the Loan Agreement as amended by this Amendment.

            (c)     The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided herein, operate an as
amendment to or waiver of any right, power or remedy of the Lender under any
of the Loan Documents, or constitute an amendment or waiver of any provision
of any of the Loan Documents.

                                  -2-

<PAGE>

            (d)     This Amendment may be executed by the parties hereto
individually or in combination, in one or more counterparts, each of which
shall be an original and all of which shall constitute one and the same
agreement. This Amendment may be executed and delivered by telecopier with
the same force and effect as if the same were a fully executed and delivered
original manual counterpart.

            (e)     This Amendment shall constitute a Loan Document.

        5.  GOVERNING LAW. THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF
THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS WITHOUT
GIVING EFFECT TO THE CONFLICTS OF LAW PRINCIPLES THEREOF.

        IN WITNESS WHEREOF, other parties hereto have caused this Amendment to
be duly executed and delivered by their respective duly authorized officers
as of the date first above written.

                                        BORROWER

                                        SONOMA SYSTEMS, INC.

                                        By:  /s/ Steve M. Waszak
                                           --------------------------------
                                           Name: Steve M. Waszak
                                           Title: Vice President Finance and CFO
                                        Herunto Duly Authorized

                                        LENDER

                                        TRANSAMERICA BUSINESS CREDIT
                                        CORPORATION

                                        By:
                                           --------------------------------
                                           Name:
                                           Title:
                                        Hereunto Duly Authorized

                                     -3-

<PAGE>

                           SECRETARY'S CERTIFICATE

         I, _________________________, hereby state that I am the duly
elected, acting and qualified Secretary Sonoma Systems, Inc., a California
corporation (the "Company"), and that:

         (a)  Through a unanimous consent in lieu of a Board of Directors
meeting of the Company, proposed in accordance with its bylaws and the laws
of said State on the ____ day of __________________, 199_, signed by a quorum
for the transaction of business, the following resolutions were duly and
regularly adopted:

         RESOLVED, that the form, terms and provisions of all of the
documents and instruments executed by the Company with and/or in favor of
Transamerica Business Credit Corporation (the "Agreements"), and the
transactions contemplated thereby be, and the same are, in all respects
approved, and that the President, each Vice President and each other officer
of the Company (the "Authorized Persons"), or any of them, be, and they
hereby are, authorized, empowered, and directed to execute and deliver the
Agreements and any and all other agreements, documents, instruments and
certificates required or desirable in connection therewith, if necessary or
advisable, with such changes as they may deem in the best interest of the
Company, and their execution and delivery of the Agreements, and all such
other agreements, documents, instruments and certificates, shall be deemed to
be conclusive evidence that the same are in all respects authorized and
approved; and be it further

         RESOLVED, that the actions of any Authorized Person heretofore
taken in furtherance of the Agreements be, and hereby are, approved, adopted
and ratified in all respects.

         (i)  The above resolutions: (a) are not contrary to the Articles or
              Certificate of Incorporation or bylaws of the Company and (b)
              have not been amended, modified, rescinded or revoked and are in
              full force and effect on the date hereof.

        (ii)  That attached hereto as EXHIBIT A is a true and correct copy of
              the Articles or Certificate of Incorporation of the Company, as
              amended, which Articles or Certificate of Incorporation have not
              been further modified, repealed or rescinded and are in full
              force and effect of the date hereof.

       (iii)  That attached hereto as EXHIBIT B is a true and correct copy of
              the Bylaws, as amended, which Bylaws of the Company have not been
              further modified, repealed or rescinded and are in full force and
              effect of the date hereof.

        (iv)  That attached hereto as EXHIBIT C is a valid Certificate of
              Good Standing issued by the Secretary of the State of the
              Company's state of incorporation.

The following persons are duly qualified and acting officers of the Company,
duly elected to the offices set forth opposite their respective names, and the
signature appearing opposite the name of each such officer is his authentic
signature:

          Name                       Office                  Signature

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

  IN WITNESS WHEREOF, I have executed this Certificate, this ____ day of
___________, 1999.

                                              --------------------------------
                                                        Secretary

[CORPORATE SEAL]

                                      -1-
<PAGE>

                         MASTER LOAN AND SECURITY AGREEMENT

       THIS AGREEMENT dated as of July 8, 1998, is made by Sonoma Systems, Inc.
(the "Borrower"), a California corporation having its principal place of
business and chief executive office at 4640 Admiralty Way, Marina del Ray,
California, 90292-6695 in favor of Transamerica Business Credit Corporation, a
Delaware corporation (the "Lender"), having its principal office at Riverway
II, West Office Tower, 9399 West Higgins Road, Rosemont, Illinois 60018.

       WHEREAS, the Borrower has requested that the Lender make Loans to it
from time to time; and

       WHEREAS, the Lender has agreed to make such Loans on the terms and
conditions of this Agreement.

       NOW, THEREFORE, in consideration of the premises and to induce the
Lender to extend credit, the Borrower hereby agrees with the Lender as
follows:

       SECTION 1.  DEFINITIONS.

       As used herein, the following terms shall have the following meanings,
and shall be equally applicable to both the singular and plural forms of the
terms defined:

AGREEMENT shall mean this Master Loan and Security Agreement together with
all schedules and exhibits hereto, as amended, supplemented, or otherwise
modified from time to time.

APPLICABLE LAW shall mean the laws of the State of Illinois (or any other
jurisdiction whose laws are mandatorily applicable notwithstanding the
parties' choice of Illinois law) or the laws of the United States of America,
whichever laws allow the greater interest, as such laws now exist or may be
changed or amended or come into effect in the future.

BUSINESS DAY shall mean any day other than a Saturday, Sunday, or public
holiday or the equivalent for banks in New York City.

CODE shall have the meaning specified in Section 8(d).

COLLATERAL shall have the meaning specified in Section 2.

EFFECTIVE DATE shall mean the date on which all of the conditions specified
in Section 3.3 shall have been satisfied.

EQUIPMENT shall have the meaning specified in Section 2.

EVENT OF DEFAULT shall mean any event specified in Section 7.

FINANCIAL STATEMENTS shall have the meaning specified in Section 6.1.

GAAP shall mean generally accepted accounting principles in the United States
of America, as in effect from time to time.

LOANS shall mean the loans and financial accommodations made by the Lender to
the Borrower in accordance with the terms of this Agreement and the Notes.

LOAN DOCUMENTS shall mean, collectively, this Agreement, the Notes, and all
other documents, agreements,

<PAGE>

certificates, instruments, and opinions executed and delivered in connection
herewith and therewith, as the same may be modified, extended, restated, or
supplemented from time to time.

MATERIAL ADVERSE CHANGE shall mean, with respect to any Person, a material
adverse change in the business, prospects, operations, results of operations,
assets, liabilities, or condition (financial or otherwise) of such Person
taken as a whole.

MATERIAL ADVERSE EFFECT shall mean, with respect to any Person, a material
adverse effect on the business, prospects, operations, results of operations,
assets, liabilities, or condition (financial or otherwise) of such Person
taken as a whole.

NOTE shall mean each Promissory Note made by the Borrower in favor of the
Lender, as amended, supplemented, or otherwise modified from time to time.

OBLIGATIONS shall mean all indebtedness, obligations, and liabilities of the
Borrower under the Notes and under this Agreement, whether on account of
principal, interest, indemnities, fees (including, without limitation,
attorneys' fees, remarketing fees, origination fees, collection fees, and all
other professionals' fees), costs, expenses, taxes, or otherwise.

PERMITTED LIENS shall mean such of the following as to which no enforcement,
collection, execution, levy, or foreclosure proceeding shall have been
commenced: (a) liens for taxes, assessments, and other governmental charges
or levies or the claims or demands of landlords, carriers, warehousemen,
mechanics, laborers, materialmen, and other like Persons arising by operation
of law in the ordinary course of business for sums which are not yet due and
payable, or liens which are being contested in good faith by appropriate
proceedings diligently conducted and with respect to which adequate reserves
are maintained to the extent required by GAAP; (b) deposits or pledges to
secure the payment of worker's compensation, unemployment insurance, or other
social security benefits or obligations, public or statutory obligations,
surety or appeal bonds, bid or performance bonds, or other obligations of
a like nature incurred in the ordinary course of business; (c) licenses,
restrictions, or covenants for or on the use of the Equipment which do not
materially impair either the use of the Equipment in the operation of the
business of the Borrower or the value of the Equipment; and (d) attachment or
judgment liens that do not constitute an Event of Default.

PERSON shall mean any individual, sole proprietorship, partnership, limited
liability partnership, joint venture, trust, unincorporated organization,
association, corporation, limited liability company, institution, entity,
party, or government (including any division, agency, or department thereof),
and the successors, heirs, and assigns of each.

SCHEDULE shall mean each Schedule in the form of Schedule A hereto delivered
by the Borrower to the Lender from time to time.

SOLVENT means, with respect to any Person, that as of the date as to which
such Person's solvency is measured:

       (a)   the fair saleable value of its assets is in excess of the total
amount of its liabilities (including contingent liabilities as valued in
accordance with GAAP) as they become absolute and matured;

       (b)   it has sufficient capital to conduct its business; and

       (c)   it is able generally to meet its debts as they mature.

TAXES shall have the meaning specified in Section 5.5.

       SECTION 2.  CREATION OF SECURITY INTEREST; COLLATERAL. The Borrower
hereby assigns and grants to the Lender a continuing general, first priority
lien on, and security interest in, all the Borrower's right, title, and
interest in and to the collateral described in the next sentence (the
"Collateral") to secure the payment and performance of all the Obligations.
The Collateral consists of all equipment set forth on all the

                                       2
<PAGE>

Schedules delivered from time to time under the terms of this Agreement (the
"Equipment"), together with all present and future additions, parts,
accessories, attachments, substitutions, repairs, improvements, and
replacements thereof or thereto, and any and all proceeds thereof, including,
without limitation, proceeds of insurance and all manuals, blueprints,
know-how, warranties, and records in connection therewith, all rights against
suppliers, warrantors, manufacturers, sellers, or others in connection
therewith, and together with all substitutes for any of the foregoing.

       SECTION 3.  THE CREDIT FACILITY.

             SECTION 3.1.  BORROWINGS. Each Loan shall be in an amount not
less than $50,000, and in no event shall the sum of the aggregate Loans made
exceed the amount of the Lender's written commitment to the Borrower in
effect from time to time. Notwithstanding anything herein to the contrary,
the Lender shall be obligated to make the initial Loan and each other Loan
only after the Lender, in its sole discretion, determines that the applicable
conditions for borrowing contained in Sections 3.3 and 3.4 are satisfied. The
timing and financial scope of Lender's obligation to make Loans hereunder are
limited as set forth in a commitment letter executed by Lender and Borrower,
dated as of June 12, 1998 and attached hereto as Exhibit A (the "Commitment
Letter").

             SECTION 3.2.  APPLICATION OF PROCEEDS.  The Borrower shall not
directly or indirectly use any proceeds of the Loans, or cause, assist,
suffer, or permit the use of any proceeds of the Loans, for any purpose other
than for the purchase, acquisition, installation, or upgrading of Equipment
or the reimbursement of the Borrower for its purchase, acquisition,
installation, or upgrading of Equipment.

             SECTION 3.3.  CONDITIONS TO INITIAL LOAN.

       (a)   The obligation of the Lender to make the initial Loan is subject
to the Lender's receipt of the following, each dated the date of the initial
Loan or as of an earlier date reasonably acceptable to the Lender, in form
and substance reasonably satisfactory to the Lender and its counsel:

             (i)    completed requests for information (Form UCC-11) listing
       all effective Uniform Commercial Code financing statements naming the
       Borrower as debtor and all tax lien, judgment, and litigation searches
       for the Borrower as the Lender shall deem reasonably necessary or
       desirable;

             (ii)  Uniform Commercial Code financing statements (Form UCC-1)
       duly executed by the Borrower (naming the Lender as secured party and the
       Borrower as debtor and in form acceptable for filing in all jurisdictions
       that the Lender deems reasonably necessary or desirable to perfect the
       security interests granted to it hereunder) and, if applicable,
       termination statements or other releases duly filed in all jurisdictions
       that the Lender reasonably deems necessary or desirable to perfect and
       protect the priority of the security interests granted to it hereunder
       in the Equipment related to such initial Loan;

             (iii)  a Note duly executed by the Borrower evidencing the
       amount of such Loan;

             (iv)   certificates of insurance required under Section 5.4 of
       this Agreement together with loss payee endorsements for all such
       policies naming the Lender as lender loss payee and as an additional
       insured;

             (v)    a copy of the resolutions of the Board of Directors of
       the Borrower (or a unanimous consent of directors in lieu thereof)
       authorizing the execution, delivery, and performance of this Agreement,
       the other Loan Documents, and the transactions contemplated hereby and
       thereby, attached to which is a certificate of the Secretary or an
       Assistant Secretary of the Borrower certifying (A) that the copy of the
       resolutions is true, complete, and accurate, that such resolutions have
       not been amended or modified since the date of such certification and
       are in full force and effect and (B) the incumbency, names, and true
       signatures of the officers of the

                                       3
<PAGE>

      Borrower authorized to sign the Loan Documents to which it is a party;

            (vi)   such other agreements and instruments as the Lender deems
      necessary in its good faith business judgment in connection with the
      transactions contemplated hereby.

      (b)   There shall be no pending or, to the knowledge of the Borrower
after due inquiry, threatened litigation, proceeding, inquiry, or other
action (i) seeking an injunction or other restraining order, damages, or
other relief with respect to the transactions contemplated by this Agreement
or the other Loan Documents or thereby or (ii) which affects or could affect
the business, prospects, operations, assets, liabilities, or condition
(financial or otherwise) of the Borrower, except, in the case of clause (ii),
where such litigation, proceeding, inquiry, or other action could not be
expected to have a Material Adverse Effect in the good faith business
judgment of the Lender.

      (c)   The Borrower shall have paid all fees and expenses required to be
paid by it to the Lender as of such date.

      (d)   The security interests in the Equipment related to the initial
Loan granted in favor of the Lender under this Agreement shall have been duly
perfected by the Lender and shall constitute first priority liens.

            SECTION 3.4.  CONDITIONS PRECEDENT TO EACH LOAN. The obligation
of the Lender to make each Loan is subject to the satisfaction of the
following conditions precedent:

      (a)   the Lender shall have received the documents, agreements, and
instruments set forth in Section 3.3(a)(i) through (v) applicable to such
Loan, each in form and substance reasonably satisfactory to the Lender and
its counsel and each dated the date of such Loan or as of an earlier date
reasonably acceptable to the Lender;

      (b)   the Lender shall have received a Schedule of the Equipment
related to such Loan, in form and substance reasonably satisfactory to the
Lender and its counsel, and the security interests in such Equipment related
to such Loan granted in favor of the Lender under this Agreement shall have
been duly perfected by the Lender and shall constitute first priority liens;

      (c)   all representations and warranties contained in this Agreement
and the other Loan Documents shall be true and correct on and as of the date
of such Loan as if then made, other than representations and warranties that
expressly relate solely to an earlier date, in which case they shall have
been true and correct as of such earlier date;

      (d)   no Event of Default or event which with the giving of notice or
the passage of time, or both, would constitute an Event of Default shall have
occurred and be continuing or would result from the making of the requested
Loan as of the date of such request; and

      (e)   the Borrower shall be deemed to have hereby reaffirmed and
ratified all security interests, liens, and other encumbrances heretofore
granted by the Borrower to the Lender.

      SECTION 4. THE BORROWER'S REPRESENTATIONS AND WARRANTIES.

            SECTION 4.1  GOOD STANDING; QUALIFIED TO DO BUSINESS. The
Borrower (a) is duly organized, validly existing, and in good standing under
the laws of the State of its organization, (b) has the corporate power and
authority to own its properties and assets and to transact the businesses in
which it is presently, or proposes to be, engaged, and (c) is duly qualified
and authorized to do business and is in good standing in every jurisdiction
in which the failure to be so qualified could have a Material Adverse Effect
on (i) the Borrower, (ii) the Borrower's ability to perform its obligations
under the Loan Documents, or (iii) the rights of the Lender hereunder.

            SECTION 4.2.  DUE EXECUTION, ETC. The execution, delivery, and
performance by

                                      4

<PAGE>

the Borrower of each of the Loan Documents to which it is a party are within
the corporate powers of the Borrower, do not contravene the organizational
documents, if any, of the Borrower, and do not (a) to the Borrower's
knowledge violate any law or regulation, or any order or decree of any court
or governmental authority to which the Borrower is subject, (b) conflict with
or result in a breach of, or constitute a default under, any material
indenture, mortgage, or deed of trust or any material lease, agreement, or
other instrument binding on the Borrower or any of its properties, or (c)
require the consent, authorization by, or approval of or notice to or filing
or registration with any governmental authority or other Person. This
Agreement is, and each of the other Loan Documents to which the Borrower is or
will be a party, when delivered hereunder or thereunder, will be, the legal,
valid, and binding obligation of the Borrower enforceable against the
Borrower in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, or similar laws affecting creditors'
rights generally and by general principles of equity.

            SECTION 4.3.  SOLVENCY; NO LIENS. The Borrower is Solvent and
will be Solvent upon the completion of all transactions contemplated to occur
hereunder on the Effective Date (including, without limitation, the Loan to be
made on the Effective Date); to the Borrower's knowledge, the security
interests granted herein constitute the first and only liens on the
Collateral other than Permitted Liens; and the Borrower is the absolute owner
of the Collateral with full right to pledge, sell, consign, transfer, and
create a security interest therein, free and clear of any and all claims or
liens in favor of any other Person other than Permitted Liens.

            SECTION 4.4.  NO JUDGMENTS, LITIGATION. No judgments are
outstanding against the Borrower nor is there now pending or, to the
Borrower's knowledge, threatened any litigation, contested claim, or
governmental proceeding by or against the Borrower except judgments and
pending or threatened litigation, contested claims, and governmental
proceedings which would not, in the aggregate, have a Material Adverse Effect
on the Borrower.

            SECTION 4.5.  NO DEFAULTS. The Borrower has not received a
notice of default or, to its knowledge, is not in default under any material
contract, lease, or commitment to which it is a party or by which it is
bound. The Borrower knows of no dispute regarding any contract, lease, or
commitment which could have a Material Adverse Effect on the Borrower.

            SECTION 4.6.  COLLATERAL LOCATIONS. On the date hereof, each
item of the Collateral is located at the place of business specified in the
applicable Schedule.

            SECTION 4.7.  NO EVENTS OF DEFAULT. No Event of Default has
occurred and is continuing nor has any event occurred which, with the giving
of notice or the passage of time, or both, would constitute an Event of
Default.

            SECTION 4.8.  NO LIMITATION ON LENDER'S RIGHTS. To the
Borrower's knowledge, except as permitted herein, none of the Collateral is
subject to contractual obligations that may restrict or inhibit the Lender's
rights or abilities to sell or dispose of the Collateral or any part thereof
after the occurrence of an Event of Default.

            SECTION 4.9.  PERFECTION AND PRIORITY OF SECURITY INTEREST. This
Agreement creates a valid and, upon completion of all required filings of
financing statements by the Lender, perfected first priority and exclusive
security interest in the Collateral, securing the payment of all the
Obligations.

            SECTION 4.10.  MODEL AND SERIAL NUMBERS. The Schedules set forth
the true and correct model number and serial number of each item of Equipment
that constitutes Collateral.

            SECTION 4.11.  ACCURACY AND COMPLETENESS OF INFORMATION. All
data, reports, and information heretofore, contemporaneously, or hereafter
furnished by or on behalf of the Borrower in writing to the Lender for
purposes of or in connection with this Agreement or any other Loan Document,
or any transaction contemplated hereby or thereby, are or will be true and
accurate in all material respects on the date as of which such data, reports,
and information are dated or certified and not incomplete by omitting to
state any material fact

                                      5
<PAGE>

necessary to make such data, reports, and information not misleading at such
time. There are no facts now known to the Borrower which individually or in
the aggregate would reasonably be expected to have a Material Adverse Effect
and which have not been specified herein, in the Financial Statements, or in
any certificate, opinion, or other written statement previously furnished by
the Borrower to the Lender.

            SECTION 4.12.  PRICE OF EQUIPMENT. To the Borrower's knowledge,
the cost of each item of Equipment does not exceed the fair and usual price
for such type of equipment purchased in like quantity and reflects all
discounts, rebates and allowances for the Equipment (including, without
limitation, discounts for advertising, prompt payment, testing, or other
services) given to the Borrower by the manufacturer, supplier, or any other
person.

      SECTION 5.   COVENANTS OF THE BORROWER.

            SECTION 5.1.  EXISTENCE, ETC. The Borrower shall: (a) retain its
existence and its current yearly accounting cycle, (b) maintain in full force
and effect all licenses, bonds, franchises, leases, trademarks, patents,
contracts, and other rights necessary or desirable to the profitable conduct
of its business unless the failure to do so could not reasonably be expected
to have a Material Adverse Effect on the Borrower, (c) continue in, and limit
its operations to, the same general lines of business as those presently
conducted by it, and (d) comply with all applicable laws and regulations of
any federal, state, or local governmental authority, except for such laws and
regulations the violations of which would not, in the aggregate, have a
Material Adverse Effect on the Borrower.

            SECTION 5.2.  NOTICE TO THE LENDER. As soon as possible, and in
any event within five days after the Borrower learns of the following, the
Borrower will give written notice to the Lender of (a) any proceeding
instituted or threatened to be instituted by or against the Borrower in any
federal, state, local, or foreign court or before any commission or other
regulatory body (federal, state, local, or foreign) involving a sum, together
with the sum involved in all other similar proceedings, in excess of $50,000
in the aggregate, (b) any contract that is terminated or amended and which
has had or could reasonably be expected to have a Material Adverse Effect on
the Borrower, (c) the occurrence of any Material Adverse Change with respect
to the Borrower, and (d) the occurrence of any Event of Default or event or
condition which, with notice or lapse of time or both, would constitute an
Event of Default, together with a statement of the action which the Borrower
has taken or proposes to take with respect thereto.

            SECTION 5.3.  MAINTENANCE OF BOOKS AND RECORDS. The Borrower will
maintain books and records pertaining to the Collateral in such detail, form,
and scope as the Lender shall require in its commercially reasonable
judgment. The Borrower agrees that the Lender or its agents may enter upon
the Borrower's premises at any time and from time to time upon reasonable
notice and during normal business hours, and at any time upon the occurrence
and continuance of an Event of Default, for the purpose of inspecting the
Collateral and any and all records pertaining thereto.

            SECTION 5.4. INSURANCE. The Borrower will maintain insurance on
the Collateral under such policies of insurance, with such insurance
companies, in such amounts, and covering such risks as are at all times
reasonably satisfactory to the Lender. All such policies shall be made
payable to the Lender, in case of loss, under a standard non-contributory
"lender" or "secured party" clause and are to contain such other provisions
as the Lender may reasonably require to protect the Lender's interests in the
Collateral and to any payments to be made under such policies. Certificates
of insurance policies are to be delivered to the Lender, premium prepaid,
with the loss payable endorsement in the Lender's favor, and shall provide
for not less than thirty days' prior written notice to the Lender, of any
alteration or cancellation of coverage. If the Borrower fails to maintain
such insurance, the Lender may arrange for (at the Borrower's expense and
without any responsibility on the Lender's part for) obtaining the insurance.
Unless the Lender shall otherwise agree with the Borrower in writing, the
Lender shall have the sole right, in the name of the Lender or the Borrower,
to file claims under any insurance policies, to receive and give acquittance
for any payments that may be payable thereunder, and to execute any
endorsements, receipts, releases, assignments, reassignments, or other
documents that may be necessary to effect the collection, compromise, or
settlement of any claims under any such insurance policies relating to the
Collateral.

                                      6
<PAGE>

               SECTION 5.5. TAXES. The Borrower will pay, when due, all
taxes, assessments, claims, and other charges ("Taxes") lawfully levied or
assessed against the Borrower or the Collateral other than taxes that are
being diligently contested in good faith by the Borrower by appropriate
proceedings promptly instituted and for which an adequate reserve is being
maintained by the Borrower in accordance with GAAP. If any Taxes remain unpaid
after the date fixed for the payment thereof, or if any lien shall be claimed
therefor, then, without notice to the Borrower, but on the Borrower's behalf,
the Lender may pay such Taxes, and the amount thereof shall be included in
the Obligations.

               SECTION 5.6. BORROWER TO DEFEND COLLATERAL AGAINST CLAIMS;
FEES ON COLLATERAL. The Borrower will defend the Collateral against all
claims and demands of all Persons at any time claiming the same or any
interest therein. The Borrower will not permit any notice creating or
otherwise relating to liens on the Collateral or any portion thereof to exist
or be on file in any public office other than Permitted Liens. The Borrower
shall promptly pay, when payable, all transportation, storage, and
warehousing charges and license fees, registration fees, assessments,
charges, permit fees, and taxes (municipal, state, and federal) which may now
or hereafter be imposed upon the ownership, leasing, renting, possession,
sale, or use of the Collateral, other than taxes on or measured by the
Lender's income and fees, assessments, charges, and taxes which are being
contested in good faith by appropriate proceedings diligently conducted and
with respect to which adequate reserves are maintained to the extent required
by GAAP.

               SECTION 5.7. NO CHANGE OF LOCATION, STRUCTURE, OR IDENTITY.
The Borrower will not (a) change the location of its chief executive office
or establish any place of business other than those specified herein or (b)
move or permit the movement of any item of Collateral from the location
specified in the applicable Schedule, except that the Borrower may change its
chief executive office, establish any place of business and keep Collateral
at other locations within the United States provided that the Borrower has
delivered to the Lender (i) prior written notice thereof and (ii) duly
executed financing statements and other agreements and instruments (all in
form and substance reasonably satisfactory to the Lender) necessary or, in
the good faith business judgment of the Lender, desirable to perfect and
maintain in favor of the Lender a first priority security interest in the
Collateral. Notwithstanding anything to the contrary in the immediately
preceding sentence, the Borrower may keep any Collateral consisting of motor
vehicles or rolling stock at any location in the United States provided that
the Lender's security interest in any such Collateral is conspicuously marked
on the certificate of title thereof and the Borrower has complied with the
provisions of Section 5.9.

               SECTION 5.8. USE OF COLLATERAL; LICENSES; REPAIR. The
Collateral shall be operated by competent, qualified personnel in connection
with the Borrower's business purposes, for the purpose for which the
Collateral was designed and in accordance with applicable operating
instructions, laws, and government regulations, and the Borrower shall use
every reasonable precaution to prevent loss or damage to the Collateral from
fire and other hazards. The Collateral shall not be used or operated for
personal, family, or household purposes. The Borrower shall procure and
maintain in effect all orders, licenses, certificates, permits, approvals,
and consents required by federal, state, or local laws or by any governmental
body, agency, or authority in connection with the delivery, installation,
use, and operation of the Collateral. The Borrower shall keep all of the
Equipment in a satisfactory state of repair and satisfactory operating
condition in accordance with industry standards, and will make all repairs
and replacements when and where necessary and practical. The Borrower will
not waste or destroy the Equipment or any part thereof, and will not be
negligent in the care or use thereof. The Equipment shall not be annexed or
affixed to or become part of any realty without the Lender's prior written
consent.

               SECTION 5.9. FURTHER ASSURANCES. The Borrower will, promptly
upon request by the Lender, execute and deliver or use its best efforts to
obtain any document reasonably required by the Lender (including, without
limitation, warehouseman or processor disclaimers, mortgagee waivers,
landlord disclaimers, or subordination agreements with respect to the
Obligations and the Collateral), give any notices, execute any financing
statements, mortgages, or other documents (all in form and substance
reasonably satisfactory to the Lender), mark any chattel paper, deliver any
chattel paper or instruments to the Lender, and take any other actions that
are necessary or, in the good faith business judgment of the Lender,
desirable to permit the Lender to perfect or continue the perfection and the
first priority of the Lender's security interest in the Collateral, to
protect the

                                       7
<PAGE>

Collateral against the rights, claims, or interests of any Persons, or to
effect the purposes of this Agreement. The Borrower hereby authorizes the
Lender to file one or more financing or continuation statements, and
amendments thereto, relating to all or any part of the Collateral without the
signature of the Borrower where permitted by law. A carbon, photographic, or
other reproduction of this Agreement or any financing statement covering the
Collateral or any part thereof shall be sufficient as a financing statement
where permitted by law. To the extent required under this Agreement, the
Borrower will pay all costs incurred in connection with any of the foregoing.

               SECTION 5.10. NO DISPOSITION OF COLLATERAL. The Borrower will
not in any way hypothecate or create or permit to exist any lien, security
interest, charge, or encumbrance on or other interest in any of the
Collateral, except for the lien and security interest granted hereby and
Permitted Liens which are junior to the lien and security interest of the
Lender, and the Borrower will not sell, transfer, assign, pledge,
collaterally assign, exchange, or otherwise dispose of any of the Collateral.
In the event the Collateral, or any part thereof, is sold, transferred,
assigned, exchanged, or otherwise disposed of in violation of these
provisions, the security interest of the Lender shall continue in such
Collateral or part thereof notwithstanding such sale, transfer, assignment,
exchange, or other disposition, and the Borrower will hold the proceeds
thereof in a separate account for the benefit of the Lender. Following such a
sale, the Borrower will transfer such proceeds to the Lender in kind.

               SECTION 5.11. NO LIMITATION ON LENDER'S RIGHTS. The Borrower
will not enter into any contractual obligations which could reasonably be
expected to restrict or inhibit the Lender's rights or ability to sell or
otherwise dispose of the Collateral or any part thereof.

               SECTION 5.12. PROTECTION OF COLLATERAL. Upon reasonable notice
to the Borrower (provided that if an Event of Default has occurred and is
continuing the Lender need not give any notice), the Lender shall have the
right at any time to make any payments and do any other acts the Lender may
deem necessary to protect its security interests in the Collateral,
including, without limitation, the rights to satisfy, purchase, contest, or
compromise any encumbrance, charge, or lien which, in the reasonable judgment
of the Lender, appears to be prior to or superior to the security interests
granted hereunder, and appear in, and defend any action or proceeding
purporting to affect its security interests in, or the value of, any of the
Collateral. The Borrower hereby agrees to reimburse the Lender for all
payments made and expenses incurred under this Agreement including fees,
expenses, and disbursements of attorneys and paralegals (including the
allocated costs of in-house counsel) acting for the Lender, including any of
the foregoing payments under, or acts taken to protect its security interests
in, any of the Collateral, which amounts shall be secured under this
Agreement, and agrees it shall be bound by any payment made or act taken by
the Lender hereunder absent the Lender's gross negligence or willful
misconduct. The Lender shall have no obligation to make any of the foregoing
payments or perform any of the foregoing acts.

               SECTION 5.13. DELIVERY OF ITEMS. The Borrower will (a)
promptly (but in no event later than three Business Days) after its receipt
thereof, deliver to the Lender any documents or certificates of title issued
with respect to any property included in the Collateral, and any promissory
notes, letters of credit or instruments related to or otherwise in connection
with any property included in the Collateral, which in any such case come
into the possession of the Borrower, or shall cause the issuer thereof to
deliver any of the same directly to the Lender, in each case with any
necessary endorsements in favor of the Lender and (b) deliver to the Lender
as soon as available copies of any and all press releases and other similar
communications issued by the Borrower.

               SECTION 5.14. SOLVENCY. The Borrower shall be and remain
Solvent at all times.

               SECTION 5.15. FUNDAMENTAL CHANGES. The Borrower shall not (a)
amend or modify its name, unless the Borrower delivers to the Lender thirty
days prior to any such proposed amendment or modification written notice of
such amendment or modification and within ten days before such amendment or
modification delivers executed Uniform Commercial Code financing statements
(in form and substance reasonably satisfactory to the Lender) or (b) merge or
consolidate with any other entity without the Lender's prior written consent
which will not be unreasonably withheld; or (c) permit a change, other than a
change which results from the sale of newly issued securities to investors,
in more than 35% of the ownership of any equity interests of the Borrower
without the Lender's prior written consent, which shall not unreasonably be
withheld. In the event that the Lender withholds its consent to a proposed
merger, consolidation or change in ownership, the Borrower shall

                                       8
<PAGE>

have the right to prepay all Obligations without penalty.

               SECTION 5.16. ADDITIONAL REQUIREMENTS. The Borrower shall take
all such further actions and exercise all such further documents and
instruments as the Lender may reasonably request.

          SECTION 6. FINANCIAL STATEMENTS. Until the payment and satisfaction
in full of all Obligations, the Borrower shall deliver to the Lender the
following financial information:

               SECTION 6.1. ANNUAL FINANCIAL STATEMENTS. As soon as
available, but not later than 120 days after the end of each fiscal year of
the Borrower and its consolidated subsidiaries, the consolidated balance
sheet, income statement, and statements of cash flows and shareholders equity
for the Borrower and its consolidated subsidiaries (the "Financial
Statements") for such year, reported on by independent certified public
accountants without an adverse qualification; and

               SECTION 6.2. QUARTERLY FINANCIAL STATEMENTS. As soon as
available, but not later than 60 days after the end of each of the first
three fiscal quarters in any fiscal year of the Borrower and its consolidated
subsidiaries, the Financial Statements for such fiscal quarter, together with
a certification duly executed by a responsible officer of the Borrower that
such Financial Statements have been prepared in accordance with GAAP and are
fairly stated in all material respects (subject to normal year-end audit
adjustments).

          SECTION 7. EVENTS OF DEFAULT. The occurrence of any of the
following events shall constitute an Event of Default hereunder:

               (a)  the Borrower shall fail to pay within two days following
receipt of notice of failure to pay when due any amount required to be paid
by the Borrower under or in connection with any Note and this Agreement;

               (b)  any representation or warranty made or deemed made by the
Borrower under or in connection with any Loan Document or any Financial
Statement shall prove to have been false or incorrect in any material respect
when made;

               (c)  the Borrower shall fail to perform or observe (i) any of
the terms, covenants or agreements contained in Sections 5.4, 5.7, 5.10,
5.14, or 5.15 hereof or (ii) any other term, covenant, or agreement
contained in any Loan Document (other than the other Events of Default
specified in this Section 7) and such failure remains unremedied for the
earlier of thirty days from (A) the date on which the Lender has given the
Borrower written notice of such failure and (B) the date on which the
Borrower knew or should have known of such failure;

               (d)  any material provision of any Loan Document to which the
Borrower is a party shall for any reason cease to be valid and binding on the
Borrower, or the Borrower shall so state;

               (e)  dissolution, liquidation, winding up, or cessation of the
Borrower's business, failure of the Borrower generally to pay its debts as
they mature, admission in writing by the Borrower of its inability generally
to pay its debts as they mature, or calling of a meeting of the Borrower's
creditors for purposes of compromising any of the Borrower's debts;

               (f)  the commencement by or against the Borrower of any
bankruptcy, insolvency, arrangement, reorganization, receivership, or similar
proceedings under any federal or state law and, in the case of any such
involuntary proceeding, such proceeding remains undismissed or unstayed for
forty-five days following the commencement thereof, or any action by the
Borrower is taken authorizing any such proceedings;

               (g)  an assignment for the benefit of creditors is made by the
Borrower, whether voluntary or involuntary, the appointment of a trustee,
custodian, receiver, or similar official for the Borrower or for any
substantial property of the Borrower, or any action by the Borrower
authorizing any such proceeding;

                                       9

<PAGE>

               (h) the Borrower shall default in (i) the payment of principal
or interest on any indebtedness in excess of $50,000 (other than the
Obligations) beyond the period of grace, if any, provided in the instrument
or agreement under which such indebtedness was created; or (ii) the
observance or performance of any other agreement or condition relating to any
such indebtedness or contained in any instrument or agreement relating
thereto, or any other event shall occur or condition exist, the effect of
which default or other event or condition is to cause, or to permit the
holder or holders of such indebtedness to cause, with the giving of notice if
required, such indebtedness to become due prior to its stated maturity; or
(iii) any loan or other agreement under which the Borrower has received
financing from Transamerica Corporation or any of its affiliates;

               (i) the Borrower suffers or sustains a Material Adverse Change;

               (j) any tax lien, other than a Permitted Lien, is filed of
record against the Borrower and is not bonded or discharged within five
Business Days;

               (k) any judgment which has had or could reasonably be expected
to have a Material Adverse Effect on the Borrower and such judgment shall not
be stayed, vacated, bonded, or discharged within sixty days;

               (l) any material covenant, agreement, or obligation, as
determined in the good faith business judgment of the Lender, made by the
Borrower and contained in or evidenced by any of the Loan Documents shall
cease to be enforceable, or shall be determined to be unenforceable, in
accordance with its terms; the Borrower shall deny or disaffirm the
Obligations under any of the Loan Documents or any liens granted in
connection therewith; or any liens granted on any of the Collateral in favor
of the Lender shall be determined to be void, voidable, or invalid, or shall
not be given the priority contemplated by this Agreement; or

               (m) more than 35% of the equity interests of the Borrower
become subject to any contractual, judicial, or statutory lien, charge,
security interest, or encumbrance.

          SECTION 8.  REMEDIES. If any Event of Default shall have occurred
and be continuing:

               (a) The Lender may, without prejudice to any of its other
rights under any Loan Document or Applicable Law, declare all Obligations to
be immediately due and payable (except with respect to any Event of Default
set forth in Section 7(f) hereof, in which case all Obligations shall
automatically become immediately due and payable without necessity of any
declaration) without presentment, representation, demand of payment, or
protest, which are hereby expressly waived.

               (b) The Lender may take possession of the Collateral and, for
that purpose may enter, with the aid and assistance of any person or persons,
any premises where the Collateral or any part hereof is, or may be placed,
and remove the same.

               (c) The obligation of the Lender, if any, to make additional
Loans or financial accommodations of any kind to the Borrower shall
immediately terminate.

               (d) The Lender may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein (or in any Loan
Document) or otherwise available to it all the rights and remedies of a
secured party under the applicable Uniform Commercial Code (the "Code")
whether or not the Code applies to the affected Collateral and also may (i)
require the Borrower to, and the Borrower hereby agrees that it will at its
expense and upon request of the Lender forthwith, assemble all or part of the
Collateral as directed by the Lender and make it available to the Lender at a
place to be designated by the Lender that is reasonably convenient to both
parties and (ii) without notice except as specified below, sell the
Collateral or any part thereof in one or more parcels at public or private
sale, at any of the Lender's offices or elsewhere, for cash, on credit, or
for future delivery, and upon such other terms as the Lender may deem
commercially reasonable. The Borrower agrees that to the extent notice of
sale shall be required by law, at least ten days' notice to the Borrower of
the time and place of any public sale or the time after which any private
sale is to be made shall constitute reasonable notification. The

                                      10

<PAGE>

Lender shall not be obligated to make any sale of Collateral regardless of
notice of sale having been given. The Lender may adjourn any public or
private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned.

               (e) All cash proceeds received by the Lender in respect of any
sale of, collection from, or other realization upon all or any part of the
Collateral may, in the discretion of the Lender, be held by the Lender as
collateral for, or then or at any time thereafter applied in whole or in part
by the Lender against, all or any part of the Obligations in such order as
the Lender shall elect. Any surplus of such cash or cash proceeds held by the
Lender and remaining after the full and final payment of all the Obligations
shall be paid over to the Borrower or to such other Person to which the Lender
may be required under applicable law, or directed by a court of competent
jurisdiction, to make payment of such surplus.

          SECTION 9.  MISCELLANEOUS PROVISIONS.

               SECTION 9.1.  NOTICES. Except as otherwise provided herein,
all notices, approvals, consents, correspondence, or other communications
required or desired to be given hereunder shall be given in writing and shall
be delivered by overnight courier, hand delivery, or certified or registered
mail, postage prepaid, if to the Lender, then to Transamerica Technology
Finance Division, 76 Batterson Park Road, Farmington, Connecticut 06032,
Attention: Assistant Vice President, Lease Administration, with a copy to the
Lender at Riverway II, West Office Tower, 9399 West Higgins Road, Rosemont,
Illinois 60018, Attention: Legal Department, and if to the Borrower, then to
Sonoma Systems, Inc., 4640 Admiralty Way, Suite 600, Marina del Ray,
California 90292-6695, Attention: Chief Financial Officer or such other
address as shall be designated by the Borrower or the Lender to the other
party in accordance herewith. All such notices and correspondence shall be
effective when received.

               SECTION 9.2.  HEADINGS. The headings in this Agreement are for
purposes of reference only and shall not affect the meaning or construction of
any provision of this Agreement.

               SECTION 9.3.  ASSIGNMENTS. The Borrower shall not have the
right to assign any Note or this Agreement or any interest therein unless the
Lender shall have given the Borrower prior written consent and the Borrower
and its assignee shall have delivered assignment documentation in form and
substance satisfactory to the Lender in its good faith business judgment. The
Lender will not withhold its consent to assignment if the assignee is a
successor in interest of Borrower in connection with a transaction to which
Lender consented pursuant to Section 5.15 hereof or if, in Lender's good
faith business judgment, where the assignment is effectively not made to a
third party. The Lender may assign its rights and delegate its obligations
under any Note or this Agreement.

               SECTION 9.4.  AMENDMENTS, WAIVERS, AND CONSENTS. Any amendment
or wavier of any provision of this Agreement and any consent to any departure
by the Borrower from any provision of this Agreement shall be effective only
by a writing signed by the Lender and shall bind and benefit the Borrower and
the Lender and their respective successors and assigns, subject, in the case
of the Borrower, to the first sentence of Section 9.3.

               SECTION 9.5.  INTERPRETATION OF AGREEMENT. Time is of the
essence in each provision of this Agreement of which time is an element. All
terms not defined herein or in a Note shall have the meaning set forth in the
applicable Code, except where the context otherwise requires. To the extent a
term or provision of this Agreement conflicts with any Note, or any term or
provision thereof, and is not dealt with herein with more specificity, this
Agreement shall control with respect to the subject matter of such term or
provision. Acceptance of or acquiescence in a course of performance rendered
under this Agreement shall not be relevant in determining the meaning of this
Agreement even though the accepting or acquiescing party had knowledge of the
nature of the performance and opportunity for objection.

               SECTION 9.6.  CONTINUING SECURITY INTEREST. This Agreement
shall create a continuing security interest in the Collateral and shall (i)
remain in full force and effect until the indefeasible payment in full of the
Obligations, (ii) be binding upon the Borrower and its successors and assigns
and (iii) inure,

                                      11

<PAGE>

together with the rights and remedies of the Lender hereunder, to the benefit
of the Lender and its successors, transferees, and assigns.

               SECTION 9.7.  REINSTATEMENT. To the extent permitted by law,
this Agreement and the rights and powers granted to the Lender hereunder and
under the Loan Documents shall continue to be effective or be reinstated if
at any time any amount received by the Lender in respect of the Obligations
is rescinded or must otherwise be restored or returned by the Lender upon the
insolvency, bankruptcy, dissolution, liquidation, or reorganization of the
Borrower or upon the appointment of any receiver, intervenor, conservator,
trustee, or similar official of the Borrower or any substantial part of its
assets, or otherwise, all as though such payments had not been made.

               SECTION 9.8.  SURVIVAL OF PROVISIONS. All representations,
warranties, and covenants of the Borrower contained herein shall survive the
execution and delivery of this Agreement, and shall terminate only upon the
full and final payment and performance by the Borrower of the Obligations
secured hereby.

               SECTION 9.9.  INDEMNIFICATION. The Borrower agrees to
indemnify and hold harmless the Lender and its directors, officers, agents,
employees, and counsel from and against any and all costs, expenses, claims,
or liability incurred by the Lender or such Person hereunder and under any
other Loan Document or in connection herewith or therewith, unless such claim
or liability shall be due to willful misconduct or gross negligence on the
part of the Lender or such Person.

               SECTION 9.10. COUNTERPARTS; TELECOPIED SIGNATURES. This
Agreement may be executed in counterparts, each of which when so executed and
delivered shall be an original, but both of which shall together constitute
one and the same instrument. This Agreement and each of the other Loan
Documents and any notices given in connection herewith or therewith may be
executed and delivered by telecopier or other facsimile transmission all with
the same force and effect as if the same was a fully executed and delivered
original manual counterpart.

               SECTION 9.11. SEVERABILITY. In case any provision in or
obligation under this Agreement or any Note or any other Loan Document shall
be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality, and enforceability of the remaining provisions or obligations, or
of such provision or obligation in any other jurisdiction, shall not in any
way be affected or impaired thereby.

               SECTION 9.12. DELAYS; PARTIAL EXERCISE OF REMEDIES. No delay
or omission of the Lender to exercise any right or remedy hereunder, whether
before or after the happening of any Event of Default, shall impair any such
right or shall operate as a waiver thereof or as a waiver of any such Event
of Default. No single or partial exercise by the Lender of any right or
remedy shall preclude any other or further exercise thereof, or preclude any
other right or remedy.

               SECTION 9.13. ENTIRE AGREEMENT. The Borrower and the Lender
agree that this Agreement, the Schedule hereto, and the Commitment Letter are
the complete and exclusive statement and agreement between the parties with
respect to the subject matter hereof, superseding all proposals and prior
agreements, oral or written, and all other communications between the parties
with respect to the subject matter hereof. Should there exist any
inconsistency between the terms of the Commitment Letter and this Agreement,
the terms of this Agreement shall prevail.

               SECTION 9.14. SETOFF. In addition to and not in limitation of
all rights of offset that the Lender may have under Applicable Law, and
whether or not the Lender has made any demand or the Obligations of the
Borrower have matured, the Lender shall have the right to appropriate and
apply to the payment of the Obligations of the Borrower all deposits and
other obligations then or thereafter owing by the Lender to or for the credit
or the account of the Borrower.

               SECTION 9.15. WAIVER OF JURY TRIAL. THE BORROWER AND THE
LENDER IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING, OR

                                      12

<PAGE>

COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN
DOCUMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          SECTION 9.16.  GOVERNING LAW. THE VALIDITY, INTERPRETATION, AND
ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS WITHOUT GIVING EFFECT TO
THE CONFLICT OF LAW PRINCIPLES THEREOF.

          SECTION 9.17.  VENUE; SERVICE OF PROCESS.  ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF ILLINOIS SITUATED IN COOK COUNTY, OR OF
THE UNITED STATES OF AMERICA FOR THE NORTHERN DISTRICT OF ILLINOIS, AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER HEREBY ACCEPTS FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. THE BORROWER HEREBY IRREVOCABLY WAIVES,
IN CONNECTION WITH ANY SUCH ACTION OR PROCEEDING, (a) ANY OBJECTION,
INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED
ON THE GROUNDS OF FORUM NON COVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE TO
THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE
JURISDICTIONS AND (b) THE RIGHT TO INTERPOSE ANY NONCOMPULSORY SETOFF,
COUNTERCLAIM, OR CROSS-CLAIM. THE BORROWER IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR
PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL,
POSTAGE PREPAID, TO THE BORROWER AT THE ADDRESS FOR IT SPECIFIED IN SECTION
9.1 HEREOF. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE LENDER TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS
OR OTHERWISE PROCEED AGAINST THE BORROWER IN ANY OTHER JURISDICTION, SUBJECT
IN EACH INSTANCE TO THE PROVISIONS HEREOF WITH RESPECT TO RIGHTS AND REMEDIES.

          IN WITNESS WHEREOF, the undersigned has caused this Agreement to be
duly executed and delivered by its proper and duly authorized officer as of
the date first set forth above.

                                           SONOMA SYSTEMS, INC.

                                     by: Steve M. Waszak
                                         -------------------------------------
                                         Name:  Steve M. Waszak
                                         Title: Vice President Finance &
                                                Operations and Chief Financial
                                                Officer
                                     Federal Tax ID:
                                       95-4582073

Accepted as of the
_____ day of July, 1998

TRANSAMERICA BUSINESS CREDIT CORPORATION

By: _______________________________________________
    Name:
    Title:

Form 16

                                             13

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