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                                                                   EXHIBIT 10.23

                                                            FINANCIAL INNOVATORS

                                                                          FINOVA

                                                      FINOVA CAPITAL CORPORATION
                                                              10 WATERSIDE DRIVE
                                                       FARMINGTON, CT 06032-3065
                                                                  (860) 676-1818

                       MASTER LOAN AND SECURITY AGREEMENT

        Master Loan and Security Agreement No. S7130 Dated July 20 , 1999

FINOVA Capital Corporation ("we," "us" or "FINOVA"), having its principal place
of business at 1850 North Central Avenue, Phoenix, Arizona 85004 is willing to
make a loan (the "Loan") to Endgate Corporation ("you" or "Borrower"), having
its principal place of business at 321 Soquel Way, Sunnyvale, CA 94086, in one
or more advances made from time to time (individually, an "Advance" and
collectively, the "Advances"), in the aggregate principal amount of up to Five
Million & 00/100 Dollars ($5,000,000.00), under the terms and conditions
contained in this Master Loan and Security Agreement (this "Master Agreement").
The entire Loan will be "cross collateralized" and secured by the collateral
(the "Collateral") described in each schedule (individually, a "Schedule" and
collectively, "Schedules") which will be executed in connection with each
Advance and the related Note (as hereinafter defined). The Collateral includes
the Equipment hereinafter described and any and all replacement parts,
additions, accessories and accessions that you may add to the Equipment, as well
as all replacements and substitutions of the Equipment and all proceeds of the
Equipment, including, without limitation, insurance proceeds. We may treat any
Schedule as a separate loan and security agreement containing all of the
provisions of this Master Agreement.

1.   THE CREDIT

     (A) ADVANCES. Each Advance shall be evidenced by and the specific terms
applicable thereto set forth in a Note and related Schedule. All of the Notes
and Schedules, taken together, will evidence the entire Loan. We will only make
the Loan to you if all the conditions in this Master Agreement have been met to
our satisfaction. We will rely on your representations and warranties contained
in this Master Agreement, in making the Loan. The terms of this Master Agreement
will each apply to the entire Loan.

     (B) USE OF PROCEEDS. The proceeds of the Advances will be used solely to
reimburse you for your payment of the purchase price for equipment which is
reasonably satisfactory to us and which is described in the applicable Schedule
("Equipment"). If you have not yet paid for the Equipment (but the same is
otherwise satisfactory to us), the proceeds of the Advance will be paid by us
directly to the supplier (which you have chosen), to pay the purchase price of
the Equipment.

     (C) NOTES. Your obligation to repay the Advance and to pay interest thereon
will be evidenced by separate secured promissory notes (individually, a "Note"
are collectively, the "Notes"). Each Note will be dated the date of the

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Schedule to which the Advance evidenced by the Note is related. The related
Schedule will be deemed to be part of the Note.

     (D) TERM. The term ("Term") of each Schedule (and the related Advance)
begins upon the date that we make payment for the Collateral covered under the
Schedule (the "Closing Date"). The Term continues until you fully perform all of
your obligations under this Master Agreement, each related Schedule and the
related Note(s).

     (E) LOAN ACCOUNT. We will keep a loan account on our books and records for
the Loan. We will record all payments of principal and interest in the loan
account. Unless the entries in the loan account are clearly in error, the loan
account will definitively indicate the outstanding principal balance and accrued
interest on the Loan.

     (F) PAYMENTS. The scheduled payments of principal and interest (the
"Payments") are indicated on and due and payable in accordance with the terms of
the applicable Note and Schedule. The Payments are payable in advance and
otherwise on the dates and in the amounts set forth on the applicable Schedule.

     (G) FIRST PAYMENT AND SUBSEQUENT PAYMENTS. The first Payment under a Note
and Advance ("First Payment") is due at the beginning of its Term and shall, at
our option, either be deducted from the proceeds of the Advance or paid directly
to us by you. Subsequent Payments are due on the thirtieth (30th) day of each
successive month as set forth on the Schedule until you pay to us in full all of
the Payments and any other fees, costs, charges and expenses that you owe us.

     (H) INTEREST. Prior to Maturity of an Advance, you will pay us interest on
the Advance at the interest rate indicated in the applicable Schedule (the
"Interest Rate"). "Maturity" means the scheduled maturity or any earlier date on
which we accelerate the Loan. The Payment amount indicated in the Schedule
includes interest at the applicable Interest Rate. Interest is calculated in
advance using a year of 360 days with twelve months of 30 days.

     (I) INTERIM INTEREST PAYMENT. If an Advance is made on a day other than the
thirtieth (30th) or thirty-first (31st) day of a month, you will also pay to us,
together with the First Payment, interest on the Advance at the applicable
interest rate for the period from the date the Advance is made until the
twenty-ninth (29th) day of the month in which the Advance is made. If an Advance
is made on the thirty-first (31st) day of a month, you will also pay to us,
together with the First Payment, interest on the Advance at the applicable
interest rate for the period from the date the Advance is made until the
twenty-ninth (29th) day of the following month. If an Advance is made on the
thirtieth (30th) day of a month, no interim interest will be due.

     (J) DEFAULT INTEREST RATE.  After Maturity of the Loan or any Advance,  you
will pay us interest  thereon at a rate of three (3%) percent per year above the
applicable Interest Rate. This is referred to as the "Default Rate."

     (K) USURY. You and we intend to obey the law. If the Interest Rate charged
would exceed the maximum legal rate, you will only have to pay the maximum legal
rate. You do not have to pay any excess interest over and above the maximum
legal rate of interest. However, if it later becomes legal for you to pay all or
part of any excess interest, you will then pay it to us upon our request.

     (L) PAYMENT DETAILS. You will make all Payments due under this Master
Agreement by 12:00 P.M., Connecticut time, on the day they are due. You will
make all Payments in US Dollars (US$) in immediately available funds. We do not
have to make or give "presentment, demand, protest or notice" to get paid. You
waive "presentment, demand, protest and notice."

     (M) APPLICATION OF PAYMENTS. Each Payment under this Master Agreement is to
be applied in the following order first, to any fees, costs, expenses and
charges you may owe us; second, to any interest due: and third to the principal
balance.

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     (N) PREPAYMENT.  You may not prepay the Loan or any Advance, in whole or in
part.

     (O) NO SETOFFS. Your obligation to pay us all Payments is absolute and
unconditional. You are not excused from making the Payments, in full, for any
reason. You agree that you have no defense for failure to make the Payments and
you will not make any counterclaims or setoffs to avoid making the Payments.

2.   SECURITY INTEREST

     (A) You grant us a first and only lien on and security interest in the
Collateral. The Collateral secures the full and timely payment and performance
of all of your now existing or hereafter arising indebtedness, liabilities and
obligations to us, whether under this Master Agreement, the Schedules, the Notes
and any other agreement, loan or lease that you may at any time or times have
with us or otherwise (collectively, the "Obligations"). You also grant us a
security interest in any additional collateral identified in any Schedule. Any
additional collateral is considered to be "Collateral" and it secures all of the
Obligations.

     (B) If we request, you will put labels supplied by us stating "PROPERTY
SUBJECT TO A SECURITY INTEREST HELD BY FINOVA CAPITAL CORPORATION" on the
Collateral where they are clearly visible.

     (C) You give us permission to add to this Master Agreement or any Schedule
the serial numbers and other information about the Collateral.

     (D) You give us permission to file this Master Agreement or Uniform
Commercial Code financing statements, at your expense, in order to perfect our
security interest in the Collateral. You also give us permission to sign your
name on the Uniform Commercial Code financing statements where this is permitted
by law.

     (E) You will pay our costs and reasonable fees for documentation, closing,
administration and termination of this Master Agreement, the Notes and
Schedules. These fees include such items as reasonable attorneys fees and
expenses incurred in preparing this Master Agreement and all agreements,
instruments and documents executed in connection herewith, and all amendments,
supplements and waivers hereto and thereto, as well as due diligence searches
and fees for preparing and filing UCC terminations and releases. You will also
pay any filing, recording or stamp fees or taxes resulting from filing this
Master Agreement or Uniform Commercial Code financing statements.

     (F) At your expense, you will defend our first priority security interest
in the Collateral against, and keep the Collateral free of, any legal process,
liens, other security interests, attachments, levies and executions. You will
give us immediate written notice of any legal process, liens, attachments,
levies or executions, and you will indemnify us against any loss that results to
us from these causes.

     (G) You will notify us at least 15 days before you change the address of
your principal executive office or principal place of business. Your principal
executive office and principal place of business are set forth at the beginning
of this Master Agreement.

     (H) You will promptly sign and return additional documents that we may
reasonably request in order to protect our first priority security interest in
the Collateral.

     (I) Except as set forth in a Schedule, the Collateral is personal property
and will remain personal property. Except as set forth in a Schedule, you will
not incorporate it into real estate and will not do anything that will cause the
Collateral to become part of real estate or a fixture.

3.   CONDITIONS OF LENDING

     (A) See our Commitment Letter to you dated March 22, 1999 (the "Commitment
Letter"), which you and we consider to be a part of this Master Agreement. The
terms and conditions of the Commitment Letter continue following the making of
the first Advance including, without

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limitation, conditions to the Loan. However, if there is a conflict between the
terms and conditions of this Master Agreement, any Schedule or any Note and the
terms and conditions of the Commitment Letter, then you and we agree that the
terms and conditions of this Master Agreement, the Schedules and the Notes
control over the Commitment Letter terms and conditions.

     (B) Before we disburse  any  proceeds of any  Advance,  we also require the
following:

         (I) That no payment is past due to us under any other agreement, loan
or lease that you or any guarantor have with us.

         (II) That you are complying with all terms of this Master Agreement,
the Schedules and the Notes and there are no defaults hereunder or thereunder.

         (III) That we have received all the documents we reasonably requested,
including the signed Schedule and Note.

         (IV) That there has been no material adverse change in your financial
condition, business or operations, or that of any guarantor, from the financial
condition that you or any guarantor have disclosed to us.

          (V) All  conditions  contained  in the  Commitment  Letter  have  been
     satisfied.

4.  REPRESENTATIONS AND WARRANTIES

You represent and warrant to us as follows:

     (A) You and each guarantor are duly organized, existing and in good
standing wherever you or it are required by law to be so qualified and where the
failure to so qualify would have a material adverse effect. You and each
guarantor have full power and authority to execute, deliver and carry out the
provisions of this Master Agreement, the Schedules and the Notes and to borrow
hereunder and thereunder. This Master Agreement, the Schedules and the Notes are
validly executed and delivered by you and the guarantors and are the legal,
valid and binding obligations of you and the guarantors, each enforceable in
accordance with its terms.

     (B) Neither you nor any guarantor is a defendant under any material
litigation and there are no judgments outstanding against you or any guarantor.

     (C) All of the Equipment has been delivered to you and installed at the
location set forth on the Schedule and you have accepted all of the Equipment
for all purposes of this Master Agreement.

     (D) You have good title to all of your assets, including, without
limitation, the Collateral, and in the case of the Collateral, free and clear of
all security interests, liens and other encumbrances, except for Permitted
Liens. Upon filing of UCC-1 financing statements in all applicable filing
offices, we will be granted a first and only perfected lien on and security
interest in all of the Collateral. There are no other security interests, liens
or encumbrances covering the Collateral, except for Permitted Liens. For
purposes of this Master Agreement, "Permitted Liens" means (i) 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; (ii) liens to secure the payment of sums
which are not yet due and payable incurred in the ordinary course of business
with respect to workers' compensation, unemployment insurance or other social
security benefits or obligations; (iii) liens in favor of FINOVA; and (iv) liens
in favor of customs and revenue authorities arising as a matter of law to secure
payments of customs duties in connection with the importation of goods, which
liens are limited to the extent that such assets are in the possession of
customs authorities.

     (E) You have supplied us with information about the Collateral. You premise
to us that the amount of our Advance as to each item of Equipment is no more
than the fair and usual price for this kind of Equipment, taking into

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account any discounts, rebates and allowances that you or any affiliate of
yours may have been given for the Equipment.

     (F) The Collateral is located at the premises set forth on the Schedule.

     (G) All financial information and other information that you or any
guarantor have given us is true and complete as of the date given. You or any
guarantor have not failed to tell us anything that would make the financial
information not misleading. There has been no material adverse change in your
financial condition, business or operations, or the financial condition of any
guarantor, from the financial condition that you disclosed to us.

     (H) To your knowledge, you have complied with all "environmental laws" and
will continue to comply with all "environmental laws. No "hazardous substances"
are used, generated, treated, stored or disposed of by you or at your properties
except in compliance with all environmental laws. "Environmental laws" mean all
federal, state or local environmental laws and regulations, including the
following laws: CERCLA, RCRA, Hazardous Materials Transport Act and The Federal
Water Pollution Control Act. "Hazardous substances" means all hazardous or toxic
wastes, materials or substances, as defined in the environmental laws, as well
as oil, flammable substances, asbestos that is or could become friable, urea
formaldehyde insulation, polychlorinated biphenyls and radon gas.

5.   COVENANTS

You agree to do the following things (or not to do the following things if so
stated) until full payment of all amounts due to us under this Master Agreement
the Schedules and the Notes:

          (A) CARE, USE, LOCATION,  TRANSFER,  ENCUMBRANCE AND ALTERATION OF THE
     COLLATERAL.

         (i) You will make sure that the Collateral is maintained in good
operating condition, and that it is serviced, repaired and overhauled when this
is necessary to keep the Collateral in good operating condition. All maintenance
must be done according to the Supplier's or Manufacturer's requirements or
recommendations. All maintenance must also comply with any legal or regulatory
requirements.

         (ii) You will maintain service logs for the Collateral, if applicable,
and permit us or our agents to inspect the Collateral, the service logs and
service reports upon prior notice to you (except in a case of an event of
default, in which case no notice is due). You give us and our agents permission
to make copies of the service logs and service reports.

         (iii) We will give you prior notice if we, or our agents, want to
inspect the Collateral or the service logs or service reports. We may inspect it
during regular business hours and not more than once a year unless an Event of
Default has occurred and is continuing. If we find during an inspection that you
are not complying with this Master Agreement or if you are otherwise in default
under this Master Agreement, you (and not us) will pay our reasonable travel,
meals and lodging costs, our salary costs, and our costs and fees and those of
our agents for reinspection. You will promptly cure any problems with the
Collateral that are discovered during our inspections.

         (iv) You will use the Collateral only for business purposes. You will
obey all legal and regulatory requirements in your use of the Collateral.

         (v) You will make all additions, modifications and improvements to the
Collateral that are required by law or government regulation. Otherwise, you
will not alter the Collateral without our written permission. You will replace
all worn, lost, stolen or destroyed parts of the Collateral with replacement
parts that are as good or better than the original parts. The new parts will
become subject to our security interest upon replacement.

         (vi) You will not remove the Collateral from the location indicated in
the Schedule provided, however, that you may move the Collateral presently
located at such location to

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another location located in the continental United States, but if and
only if (a) you shall have given us not less than thirty (30) days prior written
notice of the actual move and a list of all Collateral being so moved, (b) there
is then no default hereunder, (c) if the new location is leased, prior to such
move, we shall have received a Landlord Waiver to be in form and substance
satisfactory to us, (d) we shall have been granted a first perfected lien and
security interest on such moved Collateral and there shall be no other liens
covering such Collateral (other than Permitted Liens), (e) you shall have
executed and delivered to us all such agreements, instruments and documents
reasonably requested by us in connection therewith, and (f) we shall have
received satisfactory results of all due diligence searches (including, without
limitation, environmental audits).

         (vii) You have and will have good and merchantable title to all of the
Collateral.

         (viii) You will not convey, assign, sell, mortgage, transfer, encumber,
pledge, hypothecate, grant a security interest in, grant options with respect
to, lease or otherwise dispose of all or any part of any interest whatsoever in
or to any or all of the Collateral, or any interest therein, except for
Permitted Liens.

     (B) YEAR 2000 COMPLIANT.

You represent, warrant and agree to take all action necessary, including, but
not limited to, due inquiry and due diligence with critical business partners to
assure that there will be no material adverse change to your business by reason
of the advent of the year 2000, including, without limitation, that all
computer-based systems, embedded microchips and other processing capabilities
effectively recognize and process all dates before and after December 31, 1999
("Y2K Compliant"). At our request, you shall provide to us assurance reasonably
acceptable to us that your computer-based systems, embedded microchips and other
processing capabilities are Y2K Compliant.

     (C) RISK OF LOSS

         (i) You have the complete risk of loss or damage to the Collateral.
Loss or damage to the Collateral will not relieve you of your obligation to make
the Payments.

         (ii) If any Collateral is lost or damaged, you have two choices
although if you are in default under this Master Agreement, we and not you will
have the two options. The choices are:

         (A) Repair or replace the damaged or lost Collateral so that, once
again, the Collateral is in good operating condition and we have a perfected
first priority security interest in it.

         (B) Pay us the present value (as of the date of payment) of the
remaining Payments. We will calculate the present value using a discount rate of
five (5%) percent per year. Once you have paid us this amount and any other
amount that you may owe us, we will release our security interest in the damaged
or lost Collateral and you (or your insurer) may keep the Collateral for salvage
purposes, on an "AS IS, WHERE IS" basis and without any representation or
warranty whatsoever.

     (D) INSURANCE.

         (i) Until you have made all Payments to us under this Master Agreement,
the Schedules and the Notes and all Obligations have been satisfied in full, you
will keep the Collateral insured. The amount of insurance, the coverage, and the
insurance company must comply with the requirements of a letter dated May 14,
1999 from our Risk Management Department to you be.

         (ii) If you do not provide us with written evidence of insurance that
complies with such requirements,, we may buy the insurance ourselves, at your
expense. You will promptly pay us the cost of this insurance. We have no
obligation to purchase any insurance. Any insurance that we purchase will be our
insurance, and not yours, and we may insure the Collateral beyond the date of
satisfaction of the Obligations.

         (iii) Insurance proceeds may be used to repair or replace damaged or
lost Collateral or to

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          pay us the present value of the Payments, as provided above.

          (iv) You appoint us as your "attorney-in-fact" to make claims under
the insurance policies, to receive payments under the insurance policies, and to
endorse your name on all documents, checks or drafts relating to insurance
claims for Collateral.

               (e) TAXES.

          (i)  You will pay all sales, use, excise, stamp, documentary and ad
valorum taxes, license, recording and registration fees, assessments, fines,
penalties and similar charges imposed on the ownership, possession, use, lease
or rental of the Collateral or on the Loan.

          (ii) You will pay all taxes (other than our federal or state net
income taxes) imposed on you or on us regarding the Payments.

          (iii)At the same time you deliver the financial statements described
in paragraph 5(f)(ii)(A), you will also provide us with a certificate of your
chief financial officer stating that no default exists, or, if he cannot certify
this because a default does exist, he must specify in reasonable detail the
nature of the default.

          (iii)You will reimburse us for any of these taxes that we pay or
advance.

          (iv) You will file and pay for any personal property taxes on the
Collateral.

     (F) INFORMATION SUPPLIED BY YOU AND ANY GUARANTOR.

          (i)  During the Term you will promptly provide us with copies of any
current, quarterly and annual reports and all proxy (or information) statements
you or any guarantor file with the Securities and Exchange Commission ("SEC").

          (ii) You and any guarantor will also provide us with the following
financial statements:

          (A)  Quarterly balance sheet and statements of earnings and cash flow
- within 45 days after the end of your first three fiscal quarters in each
fiscal year. These will be certified by the chief financial officer.

          (B)  Annual balance sheet and statements of earnings and cash flow
within 90 days after the end of each fiscal year. These will be audited by
independent auditors reasonably acceptable to us. Their audit report must be
unqualified.

All financial statements will be prepared according to generally accepted
accounting principles, consistently applied. All financial statements and SEC
filings that you or any guarantor provide us will be true and complete. They
will not fail to tell us anything that would make them not misleading.

          (iii)At the same time you deliver the financial statements described
in paragraph 5(f)(ii)(A), you will also provide us with a certificate of your
chief financial officer stating that no default exists, or, if he cannot certify
this because a default does exist, he must specify in reasonable detail the
nature of the default.

          (iv) The audited financial statements described in paragraph
5(f)(ii)(B), must be accompanied by a certificate of such independent auditor
stating that no default exists, or, if it cannot certify this because a default
does exist, it must specify in reasonable detail the nature of the default.

6.   DEFAULTS

     A)   DEFAULTS. You are in default if any of the following happens:

          (i)  You do not pay us, within 5 days of when it is due, any Payment
or other payment that you owe us under this Master Agreement, any Schedule or
any Note or that you owe under any other agreement, loan, lease or other
financial arrangement that you have with us.

          (ii) Any of the financial information that you give us is not true and
complete as of the date it is given, or you fail to tell us anything that would
make the financial information not misleading.

          (iii)You do something you are not permitted to do, or you fail to do
anything that is required of you, under this Master Agreement, any Schedule or
any other lease, loan or other financial arrangement that you have with us.

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          (iv) An event of default occurs for any other lease, loan or
obligation of yours (or any guarantor) that exceeds $100,000 in the aggregate.

          (v)  You or any guarantor file bankruptcy, or involuntary bankruptcy
is filed against you or any guarantor and such involuntary bankruptcy is not
dismissed within sixty (60) days.

          (vi) You or any guarantor are subject to any other insolvency
proceeding other than bankruptcy (for example, a receivership action or an
assignment for the benefit of creditors) and such proceeding that is involuntary
is not dismissed within sixty (60) days.

          (vii) Without our permission, which permission shall not be
unreasonably withheld, you or any guarantor sell all or a substantial part of
its assets, merge or consolidate, or a majority of your voting stock or
interests (or any guarantor's voting stock or interests) is transferred.

          (viii)There is a material adverse change in your financial condition,
business or operations, or that of any guarantor.

     (B)  REMEDIES, DEFAULT INTEREST, LATE FEES.

          If you are in default and the default is continuing, we may exercise
one or more of our "remedies." Each of our remedies is independent. We may
exercise any of our remedies, all of our remedies or none of our remedies. We
may exercise them in any order we choose. Our exercise of any remedy will not
prevent us from exercising any other remedy or be an "election of remedies. If
we do not exercise a remedy, or if we delay in exercising a remedy, this does
not mean that we are forgiving your default or that we are going up our right to
exercise the remedy. Our remedies allow us to do one or more of the following:

          (i)  "Accelerate" the Loan balance under any or all Notes. This means
that we may require you to immediately pay us the entire outstanding principal
balance of the entire Loan.

          (ii) Require you to immediately pay us all amounts that you are
required to pay us for the entire Term of any other agreements, loans, leases or
financial arrangements that you have with us.

          (iii)Sue you for the entire outstanding principal balance of the Loan
and all other amounts you owe us (including, without limitation, all accrued and
unpaid interest, including interest at the Default Rate), outstanding fees,
costs, expenses and charges, plus all prepayment premiums.

          (iv) Require you at your expense to assemble the Collateral at a
location we request in the State of California

          (v)  Exercise any remedy under the Uniform Commercial Code or
otherwise permitted by law including to the extent permitted retaking and
removing the Collateral. If required, we may disconnect and separate the
Collateral from your other property. You will not be entitled to any damages
resulting from removal or repossession of the Collateral. We may use, ship,
store, repair or lease any Collateral that we repossess. We may sell any
repossessed Collateral at private or public sale. You give us permission to show
the Collateral to buyers at your location free of charge during normal business
hours. If we do this, we do not have to remove the Collateral from your
location. If we repossess the Collateral and sell it, we will give you credit
for the net sale price, after subtracting our costs of repossessing and selling
the Collateral. If we rent the Collateral to somebody else, we will give you
credit for the net rent received, after subtracting our costs of repossessing
and renting the Collateral, but the credit will be discounted to present value
using a discount rate equal to the Default Rate. The credit will be applied
against what you owe us under this Master Agreement, the Schedules, the Notes
and any other agreements, loans, leases and other financial arrangements that
you have with us. If the credit exceeds the amount you owe under this Master
Agreement, the Schedule, the Notes and any other agreements, loans, leases or
financial arrangements that you have with us, we will refund the amount of the
excess to you.

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          (vi) We will have all of our rights and remedies under this Master
Agreement, the Notes, the Schedules and all agreements, instruments and
documents executed in connection herewith and therewith and all of our rights
and remedies under applicable law, whether as a secured party or otherwise.

          (vii)Return conditions:

          (A)  Following a default, at our request you will return the
Collateral, freight and insurance prepaid by you, to us at a location we request
in the State of California. It will be returned in good operating condition, as
required by Section 5 above. The Collateral will not be subject to any liens
when it is returned.

          (B)  You will pack or crate the Collateral for shipping in the
original containers, or comparable ones. You will do this carefully and follow
all recommendations of the Supplier and the Manufacturer as to packing or
crating.

          (C)  You will also return to us the plans, specifications, operating
manuals, software, documentation, discs, warranties and other documents
furnished by the Manufacturer or Supplier. You will also return to us all
service logs and service reports, as well as all written materials that you may
have concerning the maintenance and operation of the Collateral.

          (D)  At our request, you will provide us with up to 60 days free
storage of the Collateral at your location, and will let us (or our agent) have
access to the Collateral in order to inspect it, display it to others for
purchase and sell it.

          (E)  You will pay us what it costs us to repair the Collateral if you
do not return it in the required condition.

          (viii)You will also pay us the following:

          (A)  All our expenses of enforcing our remedies. This includes all our
expenses to repossess, store, ship, repair and sell the Collateral.

          (B)  Our reasonable attorney's fees and expenses.

          (C)  Default interest on everything you owe us from the date of your
default to the date on which we are paid in full at the Default Rate.

          (D)  A premium in the amount of five percent (5%) of the outstanding
principal balance of the Loan.

          (ix) So long as you are not accruing interest at the Default Interest
Rate, you will pay us a late fee whenever you pay any amount that you owe us
more than ten (10) days after it is due. You will pay the late fee within one
month after the late Payment was originally due. The late fee will be five (5%)
percent of the late Payment. If this exceeds the highest legal amount we can
charge you, you will only be required to pay the highest legal amount. The late
fee is intended to reimburse us for our collection costs that are caused by late
Payment. Subject to the first sentence of this paragraph, it is charged in
addition to all other amounts you are required to pay us, including Default
Interest.

          (x)  You realize that the damages we could suffer as a result of your
default are very uncertain. This is why we have agreed with you in advance on
the Default Rate to be used in calculating the payments you will paying us if
you default. You agree that, for these reasons, the payments you will owe us if
you default are "agreed" or "liquidated" damages. You understand that these
payments are not "penalties" or "forfeitures."

7.   IF YOU DO NOT PERFORMING YOUR OBLIGATIONS

If you do not perform one or more of your obligations under this Master
Agreement or a Schedule or Note, we may perform it for you. We will notify you
in writing at least ten (10) days before we do this. We do not have to perform
any of your obligations for you. If we do choose to perform them, you will pay
us all your expenses to perform the obligations. You will also reimburse us for
any money that we advance to perform your obligations, together with interest at

                                       9

<PAGE>

the Default Rate on that amount. These will be additional "Payments" that you
will owe us and you will pay them at the same time that your next Payment is
due.

8.   INDEMNITY

     (a)  You will indemnify us, defend us and hold us harmless from and against
any and all claims, expenses and attorney's fees concerning or arising from the
Collateral, this Master Agreement, any Schedule or Note, or your breach of any
representation, warranty or covenant. It includes, without limitation, any
claims, losses or charges concerning, arising out of or in connection with the
manufacture, selection, delivery, possession, use, operation or return of the
Collateral and any claims, losses or damages concerning, arising out of or in
connection with this Master Agreement, any Schedule or the Notes.

     (b)  This obligation of yours to indemnify us continues even after the Term
is over.

9.   MISCELLANEOUS

     (A)  ASSIGNMENT.

WE MAY ASSIGN OR GRANT A SECURITY INTEREST IN THIS MASTER AGREEMENT, ANY
SCHEDULE, ANY NOTE OR ANY PAYMENTS WITHOUT YOUR PERMISSION. THE PERSON TO WHOM
WE ASSIGN IS CALLED THE "ASSIGNEE." THE ASSIGNEE WILL NOT HAVE ANY OF OUR
OBLIGATIONS UNDER THIS MASTER AGREEMENT. YOU WILL NOT BE ABLE TO RAISE ANY
DEFENSE, COUNTERCLAIM OR OFFSET AGAINST THE ASSIGNEE. NOTWITHSTANDING ANY SUCH
ASSIGNMENT OR GRANTING OF A SECURITY INTEREST, WE WILL CONTINUE TO BE LIABLE
FOR ALL OF OUR OBLIGATIONS LENDER THIS MASTER AGREEMENT.

UNLESS YOU RECEIVE OUR WRITTEN PERMISSION, YOU MAY NOT ASSIGN OR TRANSFER YOUR
RIGHTS UNDER THIS YOU MASTER AGREEMENT OR ANY SCHEDULE. YOU ALSO ARE NOT ALLOWED
TO LEASE OR RENT THE COLLATERAL OR LET ANYBODY ELSE USE IT UNLESS WE GIVE YOU
OUR WRITTEN PERMISSION.

     (B)  ACCEPTANCE BY FINOVA, GOVERNING LAW, JURISDICTION, VENUE, SERVICE OF
PROCESS, WAIVER OF JURY TRIAL.

THIS MASTER AGREEMENT WILL ONLY BE BINDING WHEN WE HAVE ACCEPTED IT IN WRITING.

THIS MASTER AGREEMENT IS GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF
ARIZONA (NOT INCLUDING THE "CHOICE OF LAW" DOCTRINE), THE STATE IN WHICH OUR
OFFICE IS LOCATED IN WHICH FINAL APPROVAL OF THE TERMS OR CONDITIONS OF THIS
MASTER AGREEMENT OCCURRED AND FROM WHICH DISBURSEMENT OF THE LOAN PROCEEDS WILL
BE ORDERED. HOWEVER, IF THIS MASTER AGREEMENT IS UNENFORCEABLE UNDER ARIZONA
LAW, IT WILL INSTEAD BE GOVERNED BY THE LAWS OF THE STATE IN WHICH THE
COLLATERAL IS LOCATED.

YOU MAY ONLY SUE US IN A FEDERAL OR STATE COURT THAT IS LOCATED IN MARCIA
COUNTY, ARIZONA. THIS APPLIES TO ALL LAWSUITS UNDER ALL LEGAL THEORIES,
INCLUDING CONTRACT, TORT AND STRICT LIABILITY. YOU CONSENT TO THE PERSONAL
JURISDICTION OF THESE ARIZONA COURTS. YOU WILL NOT CLAIM THAT MARICOPA COUNTY,
ARIZONA, IS AN "INCONVENIENT FORUM" OR THAT IT IS NOT A PROPER "VENUE."

WE MAY SUE YOU IN ANY COURT THAT HAS JURISDICTION. WE MAY SERVE YOU WITH PROCESS
IN A LAWSUIT BY CERTIFIED MAIL. RETURN RECEIPT REQUESTED, TO YOUR ADDRESS
INDICATED AFTER YOUR SIGNATURE BELOW.

                                       10

<PAGE>

YOU AND WE EACH WAIVE ANY RIGHT YOU OR WE MAY HAVE TO A JURY TRIAL IN ANY
LAWSUIT BETWEEN YOU AND US.

     (C)  NOTICES. Your address for notices is your address set forth below your
name on the signature page of this Master Agreement. We may give you written
notice in person, by mail, by overnight delivery service, or by fax. Mail notice
will be effective three (3) days after we deposit it with the U.S. Postal
Service. Overnight delivery notice requires a receipt and tracking number. Fax
notice requires a receipt from the sending machine showing that it has been sent
to your fax number and received.

Our address for notices is our address set forth below our name on the signature
page of this Master Agreement, with Attention: Director, Contract
Administration. You will also give copies of all notices to us at our principal
place of business at the address set forth in the opening paragraph of this
Master Agreement, with attention to Vice President, Law Department. You may give
us notice the same way that we may give you notice.

     (D)  GENERAL

This Master Agreement benefits our successors and assigns. This Master Agreement
benefits only those successors and assigns of yours that we have approved in
writing.

This Master Agreement binds your successors and assigns. This Master Agreement
binds only those successors and assigns of ours that clearly assume our
obligations in writing.

TIME IS OF THE ESSENCE OF THIS MASTER AGREEMENT

This Master Agreement, all of the Schedules and the Notes and the Commitment
Letter are together the entire agreement between you and us concerning the
Collateral.

Only an employee of FINOVA who is authorized by corporate resolution or policy
may modify or amend this Master Agreement or any Schedule or Note on our behalf,
and this must be in writing. Only he or she may give up any of our rights, and
this must be in writing. If more than one person is the Borrower under this
Master Agreement, then each of you is jointly and severally liable for your
obligations under this Master Agreement and all Schedules and Notes.

This Master Agreement is only for your benefit and for our benefit, as well as
our successors and assigns. It is not intended to benefit any other person.

If any provision in this Master Agreement is unenforceable, then that provision
must be deleted. Only unenforceable provisions are to be deleted. The rest of
this Master Agreement will remain as written.

We may make press releases and publish a tombstone announcing this transaction
and its total amount. You may publicize this transaction with our prior written
consent, which consent will not be unreasonably withheld.

LENDER:                                     BORROWER:

FINOVA CAPITAL CORPORATION                  ENDGATE CORPORATION
10 WATERSIDE DRIVE                          321 SOQUEL WAY
FARMINGTON, CT 06032-3065                   SUNNYVALE, CA  94086

BY:                                         By: /S/ EDWARD A. KEIBLE, JR.
   ---------------------------------           --------------------------------

PRINTED NAME:                               PRINTED NAME: EDWARD A. KEIBLE, JR.
             -----------------------                     ----------------------

TITLE:                                      TITLE: PRESIDENT & CEO
      ------------------------------              -----------------------------

                                       11

<PAGE>

                                 PROMISSORY NOTE
                                     NO. 01

$446,792.08

                                           ------------------------------, -----

ENDGATE CORPORATION, a Delaware corporation, ("you"), promise to pay to the
order of FINOVA CAPITAL CORPORATION ("we," "us" or "FINOVA" ) the principal
amount of FOUR HUNDRED FORTY-SIX THOUSAND SEVEN HUNDRED NINETY-TWO AND 08/00
Dollars ($446,792.08), together with interest on the unpaid principal balance at
the interest rate per annum and on the dates and as otherwise provided in the
"Master Agreement" and "Schedule" referred to below.

If the interest rate charged would exceed the maximum legal rate, you will only
have to pay the maximum legal rate. You do not have to pay any excess interest
over and above the maximum legal rate of interest. However, if it later becomes
legal for you to pay all or part of any excess interest, you will then pay it to
us upon our request.

You will make all payments in US Dollars at our offices at 10 Waterside Drive,
Farmington, Connecticut 06032-3065, or to another address that we request in
writing. All payments will be made, in immediately available funds.

This Note is executed in connection with a Master Loan and Security Agreement
dated July 20, 1999 (the "Master Agreement"), between you and us. This Note is
one of the Notes referred to in the Master Agreement, is secured as provided
therein, and by all collateral set forth on Exhibit A to the attached Schedule
(the "Schedule"), dated the same date as this Note and made a part hereof, and
is entitled to all of the benefits of the Master Agreement. This Note may not be
prepaid in whole or in part. All of the terms contained in the Schedule are
incorporated in full herein as if set forth in its entirety. This Note may be
accelerated by us upon a payment default or upon another default under the
Master Agreement or any agreement, instrument or document executed in connection
herewith or therewith.

TIME IS OF THE ESSENCE.

So long as you are not accruing interest at the Default Interest Rate, if you do
not make a payment within ten (10) days after the date it is due, you will also
pay us a late charge of five percent (5%) of the amount past due. Your interest
rate will be increased by three percent (3%) per annum ("Default Rate"), over
and above your regular interest rate if payment is not made at the scheduled or
accelerated maturity of this Note. You will also pay all of our costs of
collection, including our reasonable attorney's fees and expenses. If we
accelerate this Note, you will also owe us a premium in the amount of five
percent (5%) of the outstanding principal balance of this Note.

You waive diligence, presentment, formalities of demand, protest or notice of
nonpayment or dishonor or any other notice as to this Note.

<PAGE>

THIS NOTE IS GOVERNED BY THE SUBSTANTIVE LAWS (AND NOT THE CONFLICT OF LAWS
PROVISIONS) OF THE STATE OF ARIZONA, THE STATE IN WHICH OUR OFFICE IS LOCATED IN
AND FROM WHICH FINAL APPROVAL OF THE TERMS AND CONDITIONS OF THIS NOTE OCCURRED
AND FROM WHICH DISBURSEMENT OF THE LOAN PROCEEDS WAS ORDERED. YOU CONSENT TO THE
JURISDICTION OF ANY FEDERAL OR STATE COURT LOCATED IN THE STATE OF ARIZONA. YOU
WAIVE TRIAL BY JURY.

You represent to us that the proceeds of the Loan evidenced by this Note are
being used to finance (or refinance) your purchase of the Collateral described
in the Schedule, and that the Collateral will only be used for business
purposes.

ENDGATE CORPORATION        ATTEST:

By: /S/ EDWARD A. KEIBLE, JR.
   -------------------------------------
Name: EDWARD A. KEIBLE, JR.
     -----------------------------------
Title: EDWARD A. KEIBLE, JR.
      ------------------------------

                                       2
<PAGE>

                  SCHEDULE NO. 01 TO PROMISSORY NOTE NO. 01 AND
                       MASTER LOAN AND SECURITY AGREEMENT

Schedule No. 01, dated July 20, 1999, (this "Schedule") to PROMISSORY NOTE NO.
01 and MASTER LOAN AND SECURITY AGREEMENT dated as of July 20, 1999 (the "Master
Agreement") between ENDGATE CORPORATION, a Delaware corporation, with its
executive office and principal place of business at 321 Soquel Way, Sunnyvale,
CA 94086 ("you"); and FINOVA CAPITAL CORPORATION, a Delaware corporation, with
its executive office and principal place of business at 1850 North Central
Avenue, Phoenix, Arizona 85004 ("we," "us", or "FINOVA").

1.         OBLIGATION TO PAY. You are presently borrowing FOUR HUNDRED FORTY-SIX
THOUSAND SEVEN HUNDRED NINETY-TWO AND AND 08/100 Dollars ($446,792.08) from us.
This borrowing is evidenced by your promissory note dated the same date as this
Schedule in the amount of FOUR HUNDRED FORTY-SIX THOUSAND SEVEN HUNDRED
NINETY-TWO AND 08/100 Dollars ($446,792.08) (the "Note") to which this Schedule
is attached and made a part thereof.

2.         PAYMENTS (SUBJECT TO ADJUSTMENT IN PARAGRAPH 3). You will repay the
Loan, together with interest at the interest rate described below, in
forty-three (43) consecutive monthly payments of principal and interest as
follows: Forty-two (42) consecutive monthly payments of principal and interest,
each in the amount of $11,795.31, followed by one (1) final monthly payment of
principal and interest in the amount $67,018.81 (the "Final Payment"). These
payments will be adjusted two (2) business days prior to the date we make the
Loan to you as set forth in Paragraph 3.

The first (1st) and forty-second (42nd) monthly payment of principal and
interest ("First Payment") will be due on the date that we make the Loan to you.
Subsequent payments of principal and interest are due and payable on the
thirtieth (30th) day of each and every month thereafter through and including
the date upon which the Final Payment is scheduled to be due (the "Maturity
Date") any remaining amount that you owe us is due on the Maturity Date. The
First Monthly Payment of principal and interest (as well as any interim interest
referred to below) shall, at our option, either be withheld from the proceeds of
the Loan or paid directly to us by you.

If the Loan is made on a day other than the thirtieth (30th) or thirty-first
(31st) day of a month, you will also pay to us together with the First Payment,
interest on the Loan at the interest rate for the period from the date we make
the Loan to you until the twenty-ninth (29th) day of the same month. If the Loan
is made on the thirty-first (31st) day of a month, you will also pay to us,
together with the First Payment, interest on the Loan at the interest rate for
the period from the date we make the Loan to you until the twenty-ninth (29th)
day of the following month. If the Loan is made on the thirtieth (30th) day of a
month, no such interim interest will be due.

<PAGE>

3.         INTEREST; INDEXING. The interest rate in your payments shown above is
calculated at the rate of 8.41% per annum plus an "Index Rate" of 4.68%. The
Index Rate means the highest yield, as published in THE WALL STREET JOURNAL of
three (3) -year United States Treasury Notes. The Index Rate of 4.68% was the
Index Rate published in THE WALL STREET JOURNAL on November 5, 1998.
Two-business days prior to the date we make the Loan to you, we will read The
WALL STREET JOURNAL to determine the final Index Rate. If the Index Rate is not
published in THE WALL STREET JOURNAL, we will determine it from another reliable
source. We will increase or decrease the payments set forth above in Paragraph 2
to reflect any increase or decrease in the Index Rate on such date. We will give
you notice of any increase or decrease as soon as we can. You will pay the
increased or decreased payments unless we have made an obvious mistake in our
calculations. Interest is calculated in advance using a 360-day year of twelve
30-day months.

4.         PURPOSE OF LOAN: SECURITY INTEREST. You are making this borrowing to
finance (or refinance) your purchase of the equipment described in the attached
Exhibit A to this Schedule (the "Equipment"). The Equipment, together with all
other property described on the attached Exhibit A is hereinafter referred to as
the "Collateral". The Collateral includes, without limitation, the Equipment and
all replacement parts, additions, accessories and accessions thereto, all
replacements and substitutions thereof and all proceeds of the foregoing,
including, without limitation, insurance proceeds. In order to secure all of the
Obligations (as defined in the Master Agreement), you grant us a first lien on
and security interest in the Collateral, as well as any additions, omissions,
substitutions and proceeds of the Collateral, including, without limitation,
insurance proceeds. You also grant us a security interest in any leases and
rentals of the Collateral. This security interest secures the Note. It also
secures the full and timely payment and performance of all of your other
Obligations to us, whether under the Master Agreement, any other agreement, loan
or lease that you may have with us, or otherwise.

5.         COLLATERAL ACCEPTANCE DATE. The Equipment shall be delivered,
installed and accepted no later than December 31, 1999.

6.         TERMS OF MASTER AGREEMENT. The terms of the Master Agreement are
made a part of this Schedule as if repeated in its entirety in this Schedule.
Any declaration of default under the Master Agreement is a default under this
Schedule and permits us to exercise all remedies provided by the Master
Agreement.

ENDGATE CORPORATION                                   ATTEST

By: /S/ EDWARD A. KEIBLE, JR.
   --------------------------
Name: EDWARD A. KEIBLE, JR.
     ------------------------
Title: PRESIDENT & CEO
      -----------------------
Date: AUGUST 24, 1999                                /S/ JULIANNE BIAGINI
     ------------------------                       --------------------------
                                                     Secretary

                                       3
<PAGE>

                          EXHIBIT A TO SCHEDULE NO. 01

                                   COLLATERAL

     All of the following property, in each case, whether now existing or
hereafter arising, now owned or hereafter acquired, wherever located:

     (a) New computers, test equipment, manufacturing equipment and furniture as
         more fully detailed and described on schedule a attached hereto and
         made a part hereof ("Equipment"). Schedule a consists of 6 pages.

     (b) All accessions and additions thereto, substitutions for, and all
         replacements of, any and all of the foregoing, and all proceeds of the
         foregoing, cash and non-cash, including insurance proceeds.

Equipment location:

321 Soquel way
Sunnyvale, ca 94086

ACCEPTED AND AGREED TO THIS _________ DAY OF ___________________________, 1999.

ENDGATE CORPORATION

By: EDWARD A. KEIBLE, JR.
   ---------------------------------
    Title: President & CEO

                                      4
<PAGE>

                          SCHEDULE A TO SCHEDULE NO. 01
           BETWEEN ENDGATE CORPORATION AND FINOVA CAPITAL CORPORATION

<TABLE>
<CAPTION>
                                                                        SHIPPING
                             INVOICE   INVOICE   PRODUCT     SALES TAX   CHARGES   PRODUCTS    INVOICE
         SUPPLIER            NUMBER     DATE     AMOUNT      INVOICED    INVOICED  NOT LISTED   TOTAL    QTY.
         --------            ------     ----     ------      --------    --------  ----------   -----    ----
<S>                         <C>         <C>      <C>         <C>          <C>      <C>          <C>        <C>
King Star                    12213       9/25/98  $4,287.00   $353.68                           $4,640.68  1

Hewlett Packard              7BB5540     9/4/98   $995.00      $82.09                           $1,077.09  1

Netdirect                    429937      9/18/98  $1,649.00                $34.82               $1,683.82

King Star                    12221       9/28/98  $1,015.00    $83.74                           $1,098.74

VWR Scientific Products      17099620    10/14/98 $1,674.00   $138.11      $10.60               $1,822.71  1

Tovar Industries             26487       10/15/98   $839.00    $72.85      $44.00                 $955.85  1

Peninsula Microscope         7014        10/12/98 $1,710.00    $141.08     $20.00               $1,871.08  1

VBS Industries               7560        10/2/98  $1,092.00     $90.09     $41.85               $1,223.94  1

Zephon Wilson/Fry's Elect.   00001883    10/5/98  $1,648.99    $136.04                          $1,785.03  1

Peninsula Microscope         6999        9/30/98  $1,710.00    $141.08     $20.00               $1,871.08  1

Nearfield Systems            1568        10/7/98  $1,500.00    $123.75                          $1,623.75  1

Tektronix Inc.               MP496193    10/6/98  $16,985.00 $1,401.27     $11.89              $18,398.16  1

Hewlett Packard              7DJ8310    10/15/98  $14,381.00 $1,186.43                         $15,567.43  1
</TABLE>

<TABLE>
<CAPTION>
         SUPPLIER            EQUIPMENT DESCRIPTION               SERIAL NO.
         --------             ---------------------              ----------
<S>                         <C>                                 <C>
King Star                    Intel N440BX Server, CPU, Fans

Hewlett Packard              Digital Multimeter                  US36061510

Netdirect                    US Robo Modem Pool/.8               I217698

King Star                    21" Viewsonic 1600 .28              AH82120155

VWR Scientific Products      Ultrson Cleaner w/cover 7500

Tovar Industries             T100A Lab test bench
                             36"x33"x72"

Peninsula Microscope         Used microscope station

VBS Industries               12' Custom VBSFlex Hose             8285

Zephon Wilson/Fry's Elect.   HP 8360 Computer & Sony Mon.

Peninsula Microscope         Used microscope station

Nearfield Systems            WR-42 Probe

Tektronix Inc.               Prog ARB Generator, 2nd channel     J320498

Hewlett Packard              ESG-D Series RF Signal Gen.         US38330169
</TABLE>

                                       5

<PAGE>

                               SCHEDULE A TO SCHEDULE NO. 01
                BETWEEN ENDGATE CORPORATION AND FINOVA CAPITAL CORPORATION
<TABLE>
<CAPTION>
                                                                                       SHIPPING
                                 INVOICE        INVOICE      PRODUCT     SALES TAX     CHARGES      PRODUCTS     INVOICE
         SUPPLIER                NUMBER          DATE         AMOUNT      INVOICED     INVOICED    NOT LISTED     TOTAL       QTY.
         --------                ------          ----         ------      --------     --------    ----------     -----       ----
<S>                       <C>                  <C>          <C>           <C>          <C>         <C>          <C>            <C>
King Star                        12357         10/21/98     $7,385.00     $609.26                               $7,994.26      5

Metalink Corporation             21487         10/21/98     $4,500.00     $371.25         $5.30                 $4,876.55      1

PC Mall                   P39183750101          10/7/98     $2,040.79     $168.37       $158.69                 $2,367.85      1

Peninsula Microscope              7032         10/28/98     $1,710.00     $141.08        $20.00                 $1,871.08      1

Hewlett Packard                7F68469         11/12/98       $995.00     $ 82.09                               $1,077.09      1

PC Mall                   P39959080102         10/27/98     $2,199.00     $181.42                               $2,380.42      1

GGB Industries                   20376          11/9/98     $2,900.00                    $23.50                 $2,923.50      1

Hewlett Packard                7F68477         11/12/98     $5,100.00     $420.75                               $5,520.75      1

Hewlett Packard                7EN2679          11/3/98     $2,945.00     $242.97                               $3,187.97      1

</TABLE>

<TABLE>
<CAPTION>
       SUPPLIER               EQUIPMENT DESCRIPTION                 SERIAL NO.
       --------               ---------------------
<S>                           <C>                                 <C>
                                                                  3797 C01105,
                                                                  4072 C01106,
                                                                  3795 C01107,
                                                                  4071 C01108,
King Star                     MB intel SE440BX and access.        3802 C01109

                              IM8051-RB-400-40 Emulater and           141212,
Metalink Corporation          PC-C509-RB-20 Probe Card             188AA10104

PC Mall                       Laserjet 5000N 11x17 Printer        SUSXA049039

Peninsula Microscope          Used microscope station

Hewlett Packard               Triple Output DC Power Supply        KR83914987

PC Mall                       PCG 505FX P266 Laptop Comp.          P28983830N

GGB Industries                Probe Card, PC-8-2370-5A

                              53310-67007 Kit, Opt 031
                              Retrofit
                              TP294-C4 Platform, Controller,
Hewlett Packard               cover 5 inserts, 6' umbi.

                                                                   US36065681
                              Digital Multimeter and                      and
                              2-Triple                             KR83014212,
Hewlett Packard               Output DC Power Supply              KR83014257

</TABLE>

                                       6

<PAGE>

                             SCHEDULE A TO SCHEDULE NO. 01
                BETWEEN ENDGATE CORPORATION AND FINOVA CAPITAL CORPORATION
<TABLE>
<CAPTION>

                                                                                       SHIPPING
                                 INVOICE        INVOICE      PRODUCT     SALES TAX     CHARGES      PRODUCTS     INVOICE
         SUPPLIER                NUMBER          DATE         AMOUNT      INVOICED     INVOICED    NOT LISTED     TOTAL       QTY.
         --------                ------          ----         ------      --------     --------    ----------     -----       ----
<S>                         <C>                <C>          <C>           <C>           <C>        <C>          <C>            <C>
King Star                         12381        10/26/98     $3,696.00     $304.92                               $4,000.92       2

PC Mall                    P39959080101        10/27/98       $245.00     $ 20.21        $20.00                   $285.21       1

Test Equity                       23054        11/12/98     $3,745.00     $308.96                               $4,053.96       1

Hewlett Packard                 7EF1845        10/29/98     $2,700.00     $222.75                               $2,922.75       1

Flann Microwave                    1416        10/29/98     $4,872.00     $401.94        $29.00                 $5,302.94       2

Tovar Industries                  26619        11/20/98     $6,027.20     $507.80       $128.00                 $6,663.00       6

Sigma Systems                     10955        10/29/98     $6,260.00                    $25.35                 $6,285.35       1

National Instruments             494491        11/20/98     $4,989.50     $411.64        $41.70                 $5,442.94

King Star                         12501        11/23/98    $22,140.00   $1,826.55                              $23,966.55      12

Hewlett Packard                  7FC094        11/16/98     $1,395.00     $115.09                               $1,510.09       1

King Star Computer                12368        10/23/98     $2,954.00     $243.71                               $3,197.71       2

National Instruments             494779        11/21/98       $831.60      $68.61        $19.45                   $919.66       2

</TABLE>

<TABLE>
<CAPTION>
           SUPPLIER           EQUIPMENT DESCRIPTION                 SERIAL NO.
           --------           ---------------------                 -----------
<S>                           <C>                                 <C>
                              INTEL Dakota DK400L & access.       Monitors S/N-
King Star                     And 17" Impression Monitors            3801, 3803

PC Mall                       Sony Vaio CD-Rom Drive

Test Equity                   TEK Oscilloscope TEX 2465A                B011287

                              Retrofit Add Opt. 001 Box
Hewlett Packard               #32304

                              20333-2E Electrical Waveguide
Flann Microwave               Switch                                   120, 121

Tovar Industries              Workbenches (48"x33"x72")

Sigma Systems                 TP781 Thermal Platform                       7061

National Instruments          PCI GPIB For Windows NT

                                                                   Monitors S/N
                              INTEL Dakota DK400L & access.              C01134-
King Star                     And 17" Impression Monitors                C01145

Hewlett Packard               HP-IB DC Power Supply                  US37460232

                              Intel SE440BX w/ 17"               Monitors-3948,
King Star Computer            Impression Monitors                          3804

National Instruments          PCI GPIB For Windows NT

                                       7

</TABLE>

<PAGE>

                          SCHEDULE A TO SCHEDULE NO. 01
           BETWEEN ENDGATE CORPORATION AND FINOVA CAPITAL CORPORATION

<TABLE>
<CAPTION>
                                                                           SHIPPING
                           INVOICE       INVOICE  PRODUCT    SALES TAX     CHARGES  PRODUCTS   INVOICE
         SUPPLIER          NUMBER        DATE     AMOUNT     INVOICED      INVOICED NOT LISTED TOTAL    QTY.
         --------          ------        ----     ------     --------      -------- ---------- -----    ----
<S>                        <C>           <C>       <C>        <C>          <C>               <C>        <C>

Hewlett Packard          7GE7690         12/9/98   $2,975.00  $245.45                          $3,220.45  1

Kingstar                   12544         12/7/98   $1,010.00   $83.33                          $1,093.33  1

GGB Industries             20682         12/15/98  $3,000.00                                   $3,000.00  1

PC Mall             P39959080103         11/30/98    $111.30    $9.18                            $120.48  1

GGB Industries             20483         11/20/98  $4,100.00               $23.50              $4,123.50  1

Dove Brothers/Auction     100199         12/10/98 $47,300.00 $3,902.25                        $51,202.25

Nearfield Systems           1608         12/14/98  $8,560.00                                   $8,560.00  1

Leica Microsystems      93110251         12/10/98 $14,710.00 $1,190.91     $29.60             $15,930.51  1

GGB Industries             20703         12/18/98  $2,450.00                                   $2,450.00  1
</TABLE>

<TABLE>
<CAPTION>
         SUPPLIER          EQUIPMENT DESCRIPTION              SERIAL NO.
         --------          ---------------------
<S>                        <C>                                <C>
                           Data Acquisition Switch Unit,      US37013467,
                           Multifunction Module,
                           40-Channel                         US37003584,
                           Single Ended Multiplexer, Triple   US37002002,
Hewlett Packard            Output DC Power Supply             KR83915563

Kingstar                   21" Viewsonic 1600 .28

GGB Industries             Probe Card, PC-8-2370-5A

PC Mall                    Sony Vaio Rechargeable Battery

GGB Industries             Probe Card, PC-8-2370-2A

                           4-Noise Figure Meters, West
                           Bond 7400B Wi+J98re Bonder,
                           Bausch & Lomb Stereozoom 4
                           Microscope w/illuminator, 12'
                           Oak Conference Table, 12
                           5-Caster Conference Chairs,
Dove Brothers/Auction      Credenza and Storage Cabinet

                           Az Stage Rotary Joint Upgrade
Nearfield Systems          and Absorber Panels

                           MZ12 Optics Carrier, Leica ICA        5041099,
                           NTSC, MS5 Optics Carrier all          1079081,
Leica Microsystems         w/access.                             5036727

GGB Industries             Probe Card, PC-8-2370-4A
</TABLE>

                                       8
<PAGE>

                          SCHEDULE A TO SCHEDULE NO. 01

           BETWEEN ENDGATE CORPORATION AND FINOVA CAPITAL CORPORATION

<TABLE>
<CAPTION>                                                                SHIPPING
                           INVOICE   INVOICE    PRODUCT     SALES TAX    CHARGES  PRODUCTS   INVOICE
         SUPPLIER          NUMBER    DATE       AMOUNT      INVOICED     INVOICED NOT LISTED  TOTAL     QTY.
         --------          ------    ----       ------      --------     -------- ----------  -----     ----
<S>                        <C>       <C>        <C>         <C>          <C>                  <C>       <C>
West Bond                  41840     1/5/99     $24,204.00  $1,996.83    $88.50              $26,289.33  1

Sigma Systems              11104     1/8/99      $7,180.00    $520.55    $20.85               $7,721.40  1

Flann Microwave            1459      1/13/99     $5,350.00    $441.38    $21.00               $5,812.38  2

West Bond                  41816     12/15/98  $111,204.00   $9,174.33                       $120,378.33 1

K & US Equipment            8110     2/1/99      $5,000.00     $412.50                        $5,412.50  1

Sigma Systems              11152     2/3/99     $26,345.00     $412.50    $62.59             $26,820.09  4

Sigma Systems              11170     2/12/99     $6,015.00     $436.09     $9.41              $6,460.50  1

West Bond                  42063     2/16/99     $1,075.00      $88.68                        $1,163.68  1
</TABLE>

         SUPPLIER          EQUIPMENT DESCRIPTION         SERIAL NO.
         --------          ---------------------         ----------

                           Wedge-Wedge Ultrasonic Wire
                           Bonder, Fluorescent
                           Shadowless Illuminator w/o
                           power supply, temperature      Wire Bonder
                           Controller, 400 Watts,         S/N 15314,
                           Olympus Model SZ3060           Microscope
West Bond                  Microscope w/E-arm             S/N 806030

Sigma Systems              TP781-C4 Platform, Controller  7109, 4-2888

                           21333-2E Electrical Waveguide
Flann Microwave            Switches                       28, 29

                                                          Wire Bonder

                           Automatic Wire Bonder and       S/N 15313,
                           Olympus Model SZ3060            Microscope S/N
West Bond                  Microscope w/E-arm              712262

                           Used J118Mech-el 827 Ball
K & US Equipment           Bonder

                                                           7129, 4-2903
                                                           7130, 4-2906
                                                           7131, 4-2905
Sigma Systems              Platforms and Controllers       7132, 4-2904

Sigma Systems              Platform and Controller         7139, 4-2923

                           Ultrasonic Power supply, Dual
West Bond                  Channel, 4.0 Watts

                                       9DISTRIBUTION AGREEMENT

THIS AGREEMENT ("Agreement") is made with effect from January 1,
1998 by and between Eclipse Entertainment Group, Inc. ("Eclipse")
located at 10900 N.E. 8th Street, Suite 900, Bellevue, WA 98004
and Westar Entertainment, Inc.  ("Westar") located at 1732 S.
Sepulveda Boulevard, Los Angeles, CA 90025.

Whereas Eclipse is a producer of motion pictures for worldwide
distribution, and is also in the business of acquiring ownership
and worldwide distribution rights of motion pictures produced by
other independent producers (which motion pictures, whether
produced by Eclipse or acquired by Eclipse now or hereafter
during the Term of this Agreement are herein called the "Eclipse
Pictures").

And whereas Westar is a worldwide distributor of motion pictures.

In consideration of the respective covenants, conditions,
warranties and representations hereinafter contained, and for
other good and valuable consideration, receipt of which is hereby
acknowledged, the parties agree as follows:

Exclusive Grant of License:   Eclipse hereby engages Westar to be
the exclusive worldwide distributor of Eclipse Pictures.  Westar
hereby accepts the exclusive distribution rights in and to the
Eclipse Pictures, including but not limited to, the right to
exhibit, distribute, lease, rent, sub-distribute, sell, reissue,
release, transmit, broadcast, project, exploit, advertise,
publicize, promote and market the Eclipse Pictures, prints and
trailers thereof, excerpts, clips or portions therefrom, the
sound and music synchronized therewith, the title or titles
thereof (including the right to change the English language title
and to authorize foreign language titles), and any by-products
thereof, throughout the Territory (as defined below) and all
incidental rights pertaining thereto necessary to allow Westar
the full exercise of the rights granted herein, by any and all
media, means, methods, systems and processes, whether now known
or hereafter devised, recognized or contemplated (including
interactive, CD-ROM, TV series, live stage and publishing), and
in all sizes and gauges of film tape and other material now known
or hereafter developed, and to print, reprint, publish, copy and
vend the Eclipse Pictures in any and all languages, in any form
or media and in any style or manner Westar may desire; and to
license others to exercise any or all of the rights, powers and
privileges of Westar under this Agreement.  Said rights shall
hereinafter collectively defined as the "Rights".  The Rights
include all rights of any nature whether now known or hereafter
conceived and the licenses or privileges, under copyright or
otherwise to: (1) license the Eclipse Pictures in any and all
media, whether now known or hereafter devised, including, but not
limited to, cinematic rights (theatrical, non-theatrical and
public video), video rights (including free, pay, cable,
satellite and broadcast); (2) the license of all music and lyrics
synchronized with or written for or only in connection with the
Eclipse Pictures; (3) the right to assign, license, sub-license
or otherwise delegate any or all of the aforesaid, in accordance
with the terms herein thereof; and (4) the right, but not the
obligation, to maintain, protect and defend copyright of the
Eclipse Pictures and/or any similar protection which may be
available in the Territory but only on behalf of Eclipse.
Further, Westar shall have the right to register the entire
copyright in the Eclipse Pictures in any name as herein provided
in any jurisdiction in the Territory which permits or requires
registration or copyrights as a condition to obtain any remedies
for copyright infringement, to give constructive notice of
copyright ownership, or for other purposes.  It is specifically
understood that the copyright in the Eclipse Pictures shall
remain with Eclipse.

Delivery of the Eclipse Pictures:   Delivery of the Eclipse
Pictures to Westar ("Delivery") at Eclipse's sole expense except
as otherwise provided herein, is the essence of this Agreement.
Delivery of each Eclipse Picture shall be as soon as practical
for Eclipse.  Westar reserves the right to check the quality of
all materials delivered hereunder at a laboratory of its choice.
All materials must pass laboratory inspection and must be
satisfactory for the manufacture of first class quality release
copies of each Eclipse Picture.  Should Eclipse not complete
Delivery, any costs that Westar may incur in doing so may be
deducted from payments otherwise due to Eclipse hereunder.
Should Westar, its licensees or sub-distributors require any
Delivery materials which have not otherwise been provided by
Eclipse, Westar may in its discretion, but without obligation
therefor, arrange to have such Delivery materials made, and shall
deduct the cost thereof from payment otherwise due to Eclipse
hereunder.

Territory:   The Territory ("Territory") for this Agreement shall
be the Universe.  Territory shall be deemed to include, but not
be limited to all of the possessions and territories of the
countries and nations in the World including, but not limited to,
all armed service installations, embassies and ships at sea
wherever located, and oil platforms flying flags of any of such
nations or countries.  The Territory shall include, but not be
limited to, all rights to use the Eclipse Pictures in or on any
airplane, airline or other transportation facilities which may be
flying the flag of any country or nation

Term:   The Initial Term of this Distribution Agreement shall
commence on the execution of hereof and continue for five (5)
years.  After expiration of the Initial Term, this Distribution
Agreement shall continue from year to year unless cancelled by
either party on sixty (60) days written notice.  No license to a
third party shall be granted longer than ten years without
Eclipse's prior written consent.

Sales Policies:   Westar shall use its good faith professional
business efforts in the exploitation of the Eclipse Pictures
pursuant hereto, Eclipse agrees that Westar and any sub-
distributors or licensees of Westar shall have complete authority
to distribute the Eclipse Pictures and to exercise the rights
granted herein in accordance with such sales methods, policies
and terms as they may, in their good faith discretion, determine.
Except as provided herein, Westar and such sub-distributors shall
have the broadest possible latitude in the distribution of the
Eclipse Pictures and the exercise of their judgement in all
matters pertaining thereto shall be final.  Westar has not made
any express or implied representation, warranty, guarantee or
agreement as to the amount of Gross Receipts which will be
derived from the distribution of the Eclipse Pictures, nor has
Westar made any express or implied representation, warranty,
guarantee or agreement that there will be any sums payable to
Eclipse hereunder or that the Eclipse Pictures will be favorably
received by the exhibitors or by the public or will be
distributed continuously.  In no event shall Westar incur any
liability to Eclipse hereunder based upon any claim by Eclipse
that Westar has failed to realize receipts or revenues which
should or could have been realized.  Eclipse acknowledges that
Westar may simultaneously with the distribution of the Eclipse
Pictures distribute pictures produced and co-produced by it, or
others, or both, in competition with the Eclipse Pictures, and
Westar shall be under no duty to secure for the Eclipse Pictures
as favorable prices and terms as it secures for films produced by
it, by others or both, it being understood that without in any
way limiting the latitude or discretion of Westar or its
licensees hereunder, Westar agrees to use good faith criteria in
establishing the prices and terms for the Eclipse Pictures.
Wherever a licensee pays either a flat sum or percentage of the
receipts, or both, or makes other payments for the right to
exhibit a group of pictures under an agreement, Westar will
specify under separate contract what portion of the license
payments apply to the respective pictures in the group, and said
allocation shall be fair and equitable to Eclipse but shall in no
way be less that the scheduled minimum for that Territory.

Distribution Fees:   Westar's distribution fees ("Distribution
Fee") with respect to the Gross Receipts (as defined below) from
the Rights of the Eclipse Pictures shall be Fifty Percent (50%)
of the Gross Receipts from the exploitation of the Rights in the
Territory.  Westar shall remit the balance of Gross Receipts,
after deducting and retaining Distribution Fees, to Eclipse.

Gross Receipts:   As used herein, the term "Gross Receipts" shall
mean the aggregate of all monies actually received (and not
subject to forfeiture or return) by Westar from its licensees or
sub-distributors from the sale, licensing, marketing and
exploitation of the Eclipse Pictures and any use of the Rights in
the Territory.

Distribution Expenses:   The term "Distribution Expenses" shall
include, but not be limited to, expenses incurred with respect to
trailers, art work, promotional materials, delivery materials,
advertising, and any and all expenses incurred by Westar for the
sales, marketing and distribution of the Eclipse Pictures, the
exploitation of the Rights, and reasonable attorney's fees and
costs for any third party claims or causes of action related to
the Eclipse Pictures.  All Distribution Expenses incurred by
Westar shall be paid to, or reimbursed to, Westar by Eclipse as
and when incurred by Westar.

Editing, Resetting and Foreign Versions:   Westar may make or
cause to be made and/or authorize others to make English-language
and foreign-language versions of the Eclipse Pictures, whether
dubbed versions, superimposed versions or otherwise, all with
prior consultation with Eclipse.  Eclipse will pay Westar for
same as a Distribution Expense if not paid by the territorial
distributor.  Westar may also grant to any other persons, firms,
corporation or entities the right to make foreign-language
versions in the Territory during the Term.  Westar, with the
prior written consent of Eclipse, may change the title of any
Eclipse Pictures in connection with its distribution in all or
any part of the Territory if, in the judgement of Westar, it is
desirable or expedient to do so.

Music Synchronization License Rights:   Eclipse hereby licenses
to Westar for the Term and Territory the synchronization rights
in the Eclipse Pictures, only to be used in connection with the
distribution or exploitation of the Eclipse Pictures in all media
throughout the World.  All other music rights including
performance rights are held by Eclipse.

Westar's Credit:   Westar and its designees shall receive the
following credits with respect to the exploitation of the Eclipse
Pictures:

A.  On-Screen Credit:

(i)  A first card, single card, front end message presentation
credit on the screen, consisting of Westar's optical logo and
types credit reading "Westar Entertainment Presents" in a size
equal to the regular title, followed by Eclipse credits.

B.  Credit in Paid Advertising:

(i)  "Westar Entertainment Presents" above or preceding the
regular title in first position, along with the Westar logo.

Execution of Documents:   Eclipse and Westar shall execute and
deliver any and all documents which may be necessary or
appropriate to fully implement the provisions of this
Distribution Agreement.

Eclipse's Warranties:   Eclipse specifically represents and
warrants that (i) Eclipse has the full authority to grant the
Rights granted to Westar herein; (ii) that the Rights are and
will be free and clear of any liens, encumbrances, restrictions,
claims or rights inconsistent with or which could adversely
affect any of the Rights granted herein to Westar, and the
Eclipse Pictures as delivered will be free from any outstanding
payable of any kind; (iii) that the grant of the Rights to Westar
does not interfere with or infringe on the rights of any third
party; (iv) that all rights to music, story, name, likeness,
pictures caricatures, dialogue, voice-overs, the literary
material upon which the Eclipse Pictures are based and to any
other material of any nature whatsoever appearing, used or
recorded in the Eclipse Pictures have been and will be obtained
in proper form for the free and unrestricted use and exploitation
of the Eclipse Pictures in the Territory; (v) that Eclipse has
and will have the right to issue and authorize publicity
concerning persons appearing in or rendering services in
connection with the Eclipse Pictures or appearing in the paid
advertising of the billing, and has and will have the right to
use, reproduce, transmit, broadcast , exploit, publicize and
exhibit their names, photographs, likeness, voices and other
sound effects, as well as recording, transcriptions, films and
other reproductions thereof in connection with the Rights granted
herein to Westar; (vi)that there are and will be no restrictions
from Eclipse or third parties of any kind which could or would
prevent, limit or impair Westar's sole and exclusive Rights or
its right to any use or exploitation thereof; (vii) except as
provided herein Westar will not be obligated to make any payments
to anyone other than as expressly specified in this Distribution
Agreement in connection with the exercise by Westar, its
licensees or sub-distributors of any license rights granted,
including but not limited to, any guild, rerun, reuse, pension,
deferment or residual payments of any kind, nature or
description; (viii) that no third party is entitled to share
Gross Receipts of the Eclipse Pictures in any way which would
limit Westar's Distribution Fee as provided for herein; (ix) that
none of the Eclipse Pictures have been or will be released,
distributed or exhibited by any means or media whatsoever in any
part of the Territory, nor banned by censors of, or refused
import permits for any part of the Territory; (x) Eclipse has not
and will not exercise any right in the Eclipse Pictures which
might tend to derogate from or compete with the Rights herein
granted to Westar; (xi) Westar will quietly and peacefully enjoy
and possess all Rights without hindrance on the part of any
person, firm, corporation or entity,; and (xii) Eclipse further
represents and warrants that none of the Eclipse Pictures, nor
any materials contained therein or synchronized therewith, nor
the exercise of any rights or license t herein, will defame or
constitute unfair competition with any third party, violates or
will violate, infringes or will infringe, any trademark, trade
name, copyright or civil property, right of privacy, right of
publicity or "moral right of authors", or any law or regulation
or other right whatsoever of, or slanders or libels, any person,
firm, corporation, association or entity whatsoever.  Westar
warrants that it will not make any changes in the Eclipse
Pictures or perform any act that would subject Westar to any
Liability whatsoever.

Infringements and Collection Suits:   Westar may, in the name of
Eclipse, or otherwise, take such steps as Westar may deem
reasonably necessary or appropriate by action-at-law or otherwise
to prevent unauthorized exhibition or distribution of the Eclipse
Pictures or any infringement upon the rights of Eclipse or Westar
under this Distribution Agreement, and Westar or its nominee may,
as Eclipse's attorney-in-fact, execute, acknowledge, verify and
deliver all instruments pertaining thereto in the name of and on
behalf of Eclipse only in respect to infringement and collection
suits.  Westar may also take such steps as Westar shall deem
necessary or appropriate by action-at-law or otherwise to recover
moneys due pursuant to any agreement relating to the exploitation
of the Rights.  All costs and expenses, including reasonable
attorneys fees, in connection with such matters shall be borne by
Westar but shall be recoupable by Westar from Eclipse.

Offset Rights:   In the event any written claim or lawsuit is
instituted against Westar or any licensee or sub-distributor of
Westar, which written claim or lawsuit (the "Liability") on a
claim inconsistent with any of Eclipse's warranties,
representations or agreements hereunder, Westar may offset any
moneys that Westar reasonably deem necessary, now or hereafter
payable to or for the account of Eclipse, in the amount of the
Liability plus Westars reasonable attorney's fees and costs,
whether or not the Liability has been reduced to judgement.  In
addition, pending the final determination of such Liability,
Westar may withhold from such moneys payable to Eclipse hereunder
such amount as Westar may reasonably deem necessary to cover the
Liability plus Westar's reasonable attorney's fees and costs.
Westar may compromise or settle such Liability upon terms as
Westar may deem reasonable.

Indemnity:

A.  Each party (in this capacity referred to as "Indemnitor")
agrees to indemnify and hold the other party (in this capacity
referred to as "Indemnitee") and its successors in interest.
licensees and assigns, the officers, directors agents,
shareholders, attorneys, and employees of the foregoing (in this
capacity referred to as "Indemnities") harmless from and against
and all costs, claims, charges, recoveries, losses, expenses
(including, but not limited tom reasonable attorney's fees),
liabilities, judgements, settlements, compromises or any other
out-of-pocket loss (hereinafter collectively referred to as a
"Loss") which may be made, asserted, maintained, secured, against
or suffered by Indemnities, or any of them caused by any breach
or alleged breach by Indemnitor of any provision of this
Distribution Agreement.

B.  Each party agrees to give the other party timely written
notice of any claim, demand or action which is or may be subject
to this Paragraph including A or B hereof ("Demand") promptly
after obtaining knowledge thereof and shall make available to the
other party all documents and information in possession of that
party material the Demand.  Within ten (10) days from receipt of
such notice, the applicable Indemnitor agrees to assume the
defense of the demand on behalf of itself and the applicable
Indemnities.  Any Indemnitee shall have the right to participate
in the defense of any Demand through counsel of their choice at
their cost, if the applicable Indemnitor fails to promptly assume
the defense of any reasonable Demand, any Indemnitee may do so
and the applicable Indemnitor shall promptly reimburse all
Indemnitees for all costs, expenses (including, but not limited
to, reasonable attorney's fees) incurred in connection therewith
as such are incurred.  Indemnitees shall not settle or compromise
any Demand without prior written consent of any Indemnitor,
unless that Indemnitor shall fail or refuse for any reason to
reimburse costs and expenses withheld.  Both parties agree to
fully cooperate with the other in the defense of all Demands
initially made by third parties, including but not limited to,
prompt compliance with all reasonable discovery requests.

Assignment, Successors:   Both parties may assign this
Distribution Agreement provided that such assignment does not
release the assignor from assigner's responsibilities hereunder
and provided that the other party is advised of such assignment
before it is effected.  This Distribution  Agreement shall inure
to the benefit of and be binding upon the heirs, executors,
administrators, assignees and successors in interest of the
parties hereto.

Applicable Law:   This Agreement shall be construed, interpreted
and enforced in accordance to the laws of the State of California
applicable to agreements executed and to be wholly performed
within such state and without regard to the conflict or choice of
law provisions thereof.  All proceedings commenced to enforce
this Agreement shall be decided before a sole arbitrator in the
County of Los Angeles, State of California before the American
Film Association Arbitration Tribunal in accordance with AFMA
rules and procedures.

Partial Invalidity:   If any provisions of this Distribution
Agreement is held invalid or unenforceable by any court of final
jurisdiction, it is the intent of the parties that such provision
shall be ineffective only to the extent of such prohibition or
invalidity and that all other provisions of this Distribution
Agreement shall be construed to remain fully valid, enforceable
and binding on the parties.

Interpretation:   Wherever any words are used herein in a gender
they shall also be construes as though they were in the opposite
gender in all cases where they would apply and wherever any words
are used herein the singular form they shall be construed as
though they were also used in the plural form in all cases where
they would so apply.

Relationship of Parties:   The relationship between Eclipse and
Westar is that of creditor and debtor with respect to sums due
pursuant to this Agreement.  Nothing contained herein shall be
construed so as to create a joint venture or partnership between
Eclipse and Westar.  Except as otherwise specifically set forth
herein, neither Eclipse nor Westar shall be authorized or
empowered to make any representation or commitment or to perform
any act which shall be binding on the other party unless
expressly authorized or empowered in writing.

Headings:   The descriptive headings of the paragraphs of this
Agreement are inserted solely for convenience of reference and
are not part of this Agreement and are not intended to govern,
limit, amplify or aid in the construction of any of the terms or
provisions of this Agreement.

Counterparts:   This Agreement may be signed in one or more
counterparts, each of which shell be deemed an original, but all
of which shall constitute one and the same instrument.  The
respective signatures on each of such counterparts shall
constitute a binding agreement by and between the parties.

Notices:   All notices, payments or approvals which either party
is required or may desire to give or to serve upon the other
party under this Distribution Agreement shall be in writing and
may be delivered personally, by facsimile transmission, by
overnight courier services or by registered or certified mail,
return receipt requested, prepaid first class mail to the said
party at the address set forth below or such other address of
which it may hereafter give notice to the other party in writing.
A copy of any notice sent by facsimile transmission must also be
sent by regular mail.  Any notice sent by facsimile transmission
shall be deemed served the same day if it is a business day
during normal business hours of the recipient or the next
business day is received after recipient's normal business hours
or on a Saturday, Sunday or legal holiday.  Any notice sent by
overnight courier service shall be deemed served the next
business day.  Any notice sent by certified or registered prepaid
first class mail shall be deemed served seven (7) days after it
shall be deposited with the Canadian or United States Postal
Service.

Notices to Producer: Eclipse Entertainment Group, Inc.
10900 N.E. 8th Street, Suite 900
Bellevue, WA 98004
Tel: (425) 990-5969     Fax: (425) 990-5979

Notices to Westar: Westar Entertainment, Inc.
1732 S. Sepulveda Boulevard
Los Angeles, CA 90025
Tel: (310)477-4144      Fax: (310)477-6690

Accounting:   Westar shall furnish Eclipse with detailed and
itemized reports quarterly, said reports to indicate Gross
Receipts, Distribution Fees and Distribution Expenses, and shall
be accompanied by Eclipse's Share of Gross Receipts shown to be
due.  Any objection to a report shall be made in writing within
six (6) months of the rendering of same and if no objection has
been made said report shall be deemed final and any objection
thereto deemed waived and action thereon barred.

Entire Agreement:   This Distribution Agreement constitutes the
complete and entire agreement and understanding between the
parties pertaining to the subject matter contained herein and
supercedes all prior and contemporaneous agreements,
representation and understandings, whether oral or written, of
the parties.  No supplement, modification or amendment of this
Distribution Agreement shall be binding unless executed in
writing by all parties.  Eclipse and Westar shall execute any and
all documents and instruments and shall do all acts which may be
necessary or appropriate to fully implement the provisions of
this Distribution Agreement.

Arbitration:   Any controversy, dispute or claim arising out of
the interpretation, performance, breach or alleged breach of this
Distribution Agreement, shall be resolved by binging arbitration,
before a sole arbitrator, at the request of either party, in
accordance with the rules of the American Film Marketing
Association.  The arbitrator shall apply California substantive
law and the California Evidence Code to the Proceedings.  The
arbitrator shall have the power to grant all legal and equitable
remedies and award compensatory damages provided by California
law, including the power to award punitive damages in the event
of gross misconduct or fraud, that Eclipse may not enjoin the
distribution of any Eclipse Picture for any reason and shall be
limited to its damages at law for any claims arising under or in
connection with this Distribution Agreement.  The arbitrator
shall prepare in writing and provide to the parties an award
including factual findings and the errors of law or legal
reasoning, and the award may be vacated or corrected pursuant to
California Code of Civil Procedure Sections 1286.2 or 1286.6 for
any such error.  All such proceedings shall take place in the
County of Los Angeles, State of California.

Default and Cure:   Neither party shall be liable for its breach
of the terms of this Distribution Agreement unless it shall have
received written notice of such breach from the non-breaching
party and the breaching party shall not within fifteen (15) days
after receipt of such notice have cured said breach.  Such cure
right shall not be applicable to breaches which are incapable of
being cured.  In the event Westar or Eclipse materially breaches
this Distribution Agreement and does not cure said breach in
accordance with the terms hereof, Westar or Eclipse may elect to
terminate this Distribution Agreement and all of its obligations
hereunder, it being understood that the exercise by Westar or
Eclipse of its rights or remedies under any one provision of this
Distribution Agreement shall not limit or affect its rights or
remedies concurrently or subsequently to exercise any other right
or remedy and shall be in addition to such other rights or
remedies as Westar or Eclipse may have at law, in equity, under
this Distribution Agreement or otherwise.  All of Westar's and
Eclipse's rights and remedies under this Distribution Agreement
shall be cumulative.

No Waiver:   No waiver of any of the provisions of this
Distribution Agreement shall be deemed, or shall constitute a
waiver of any other provision, whether or not similar, dissimilar
or identical, nor shall any waiver constitute a continuing
waiver.  Nether party shall be deemed to have waived any
provision hereof except in writing signed by the party to be
charged.

Construction:   This Distribution Agreement has been negotiated
and approved by the parties hereto and notwithstanding any rule
or maxim of construction to the contrary, any ambiguity or
uncertainty in this Agreement shall not be construed against
either party based upon authorship of any of the provisions
hereof.

IN WITNESS WHEREOF the parties hereto have executed this
Agreement as of the date first written above.

ECLIPSE ENTERTAINMENT  GROUP, INC

By: /s/  Arthur Birzneck
Arthur Birzneck, President

Date: January 1, 1998

WESTAR ENTERTAINMENT GROUP, INC.

By: /s/  Franco Colombu
Franco Columbu, President

Date: January 1, 1998

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]