Document:

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                                                                     Exhibit 4.7

THIS WARRANT AND THE SHARES OF EQUITY SECURITIES THAT MAY BE PURCHASED PURSUANT
TO THE EXERCISE OF THIS WARRANT HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT AND
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH SALE,
OFFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF THE ACT AND OF ANY APPLICABLE STATE SECURITIES LAWS.

                             GADZOOX NETWORKS, INC.
                 AGREEMENT AND WARRANT TO PURCHASE COMMON STOCK

                       Effective Date: September 28, 2001
                         Void After: September 28, 2006

        This Agreement and Warrant to Purchase Common Stock (this "Agreement" or
"Warrant") certifies that, for value received, Pacific Business Funding (the
"Holder"), a division of Cupertino National Bank, is entitled, subject to the
terms set forth below, to purchase from Gadzoox Networks, Inc., a Delaware
corporation (the "Company"), up to 71,942 shares of Common Stock of the Company
("Common Stock"), upon surrender of this Warrant, at the principal office of the
Company referred to below, with the subscription form attached hereto duly
executed, and simultaneous payment therefor in lawful money of the United States
(or otherwise as hereinafter provided) of the Exercise Price (as defined in
Section 2 below). The Exercise Price and the number of shares of Common Stock
purchaseable hereunder are subject to adjustment as provided herein.

        1. NUMBER OF SHARES. This Warrant may be exercised, in whole or in part,
for 71,942 shares of Common Stock (the "Warrant Shares").

        2. EXERCISE PRICE. The per share purchase price of the Common Stock (the
"Exercise Price") for which this Warrant may be exercised shall be $1.39 per
share.

        3. EXERCISE OF WARRANT.

                3.1 Time of Exercise. Subject to the terms and conditions set
forth herein, this Warrant shall be exercisable, in whole or in part, at any
time or from time to time prior to September 28, 2006; provided, however, that
this Warrant shall terminate immediately prior to the closing of (i) a merger or
consolidation of the Company with or into any other corporation or corporations
in which the stockholders of the Company shall own less than fifty percent (50%)
of the voting securities of the surviving corporation or (ii) a sale of all or
substantially all of the assets of the Company (each a "Change of Control
Event"). The Company shall give the Holder written notice of a Change of Control
Event not later than 10 days prior to the closing of such Change of Control
Event. The exercise shall be effected by (a) the surrender of this Warrant at
the principal office of

<PAGE>

the Company as set forth in Section 12.5 (or such other office or agency of the
Company as may be designated by notice in writing to the Holder at the address
of the Holder appearing on the books of the Company), (b) delivery of the Notice
of Exercise attached hereto as Exhibit A (unless the Holder is exercising by
means of a "net exercise" as provided for in Section 4 below, in which case the
Holder shall deliver the Net Exercise Notice attached hereto as Exhibit B ("the
Net Exercise Notice")) and (c) unless payment of the Exercise Price is made
pursuant to a "net exercise" as provided under Section 4 below, payment of the
Exercise Price in cash or by check acceptable to the Company.

                3.2 Effect of Exercise. This Warrant (or the portion thereof
exercised) shall be deemed to have been exercised immediately prior to the close
of business on the date of its surrender for exercise as provided above, and the
person entitled to receive the shares of Common Stock issuable upon such
exercise shall be treated for all purposes as the holder of record of such
shares as of the close of business on such date. As promptly as practicable on
or after such date, the Company, at its expense, shall issue and deliver to the
person or persons entitled to receive the same a certificate or certificates for
the number of shares issuable upon such exercise and, unless this Warrant shall
have expired, a new warrant representing the number of warrants represented by
the surrendered Warrant, if any, that shall not have been exercised shall also
be delivered to the Holder.

        4. NET EXERCISE.

                (a) Net Issue Exercise. In lieu of exercising this Warrant via
cash payment, the Holder may elect to receive shares equal to the value of this
Warrant (or the portion thereof being canceled) by surrender of this Warrant at
the principal office of the Company together with the completed Net Exercise
Notice indicating the Holder's election to exercise this Warrant by means of a
"net exercise," in which event the Company shall issue to the Holder a number of
shares of Common Stock computed using the following formula:

               X = Y (A - B)
                   ---------
                       A

Where  X  =  the number of Warrant Shares to be issued to the Holder.

       Y  =  the number of Warrant Shares purchasable under this Warrant or,
             if only a portion of the Warrant is being exercised, the portion
             of the Warrant being cancelled (at the date of such calculation).

       A  =  the Fair Market Value (as defined below) of one Warrant Share
             (at the date of such calculation).

       B  =  the Exercise Price (as adjusted to the date of such calculation).

                If the above calculation results in a negative number, then no
shares of Common Stock shall be issued or issuable upon conversion of this
Warrant.

                (b) Fair Market Value. For purposes of this Section 4, the Fair
Market Value of one Warrant Share shall be determined by the Company's Board of
Directors in good faith;

                                                                             -2-
<PAGE>

provided, however, that where there exists a public market for the Common Stock
at the time of such exercise, the fair market value per Warrant Share shall be
the average of the closing bid and asked prices of the Common Stock quoted in
the Over-The-Counter Market Summary or the average of the high and low prices as
reported by The Nasdaq National Market, the Nasdaq Small Cap Market or on any
exchange on which the Common Stock is listed, whichever is applicable, for the
five trading days prior to the date of the delivery of the Net Exercise Notice.

        5. NO FRACTIONAL SHARES OR SCRIP. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. In lieu of any fractional share to which the Holder would otherwise be
entitled, the Company shall make a cash payment equal to the Exercise Price
multiplied by such fraction computed to the nearest whole cent.

        6. NO RIGHTS AS STOCKHOLDER. The Holder shall not be entitled to vote or
receive dividends or be deemed the holder of Common Stock or any other
securities of the Company that may at any time be issuable on the exercise
hereof for any purpose, nor shall anything contained herein be construed to
confer upon the Holder, as such, any of the rights of a stockholder of the
Company or any right to vote for the election of directors or upon any matter
submitted to stockholders at any meeting thereof, or to give or withhold consent
to any corporate action or to receive notice of meetings, or to receive
dividends or subscription rights or otherwise, until the Warrant shall have been
exercised as provided herein.

        7. NO TRANSFER OF WARRANT.

                7.1 No Transferability of Warrant. The Holder shall not sell,
assign or otherwise transfer the Warrant or any part thereof or right thereunder
to any person or entity.

                7.2 Register. The Company will maintain a register (the "Warrant
Register") containing the name and address of the Holder. The Holder of this
Warrant may change its address as shown on the Warrant Register by written
notice to the Company requesting such change. Any notice or written
communication required or permitted to be given to the Holder may be delivered
or given by mail to the Holder as shown on the Warrant Register and at the
address shown on the Warrant Register.

        8. REPRESENTATIONS AND WARRANTIES OF THE HOLDER AND RESTRICTIONS ON
           TRANSFER IMPOSED BY THE SECURITIES ACT AND CALIFORNIA LAW.

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

                        (a) The Warrant and the Warrant Shares are being
acquired for the Holder's own account, for investment and not with a view to, or
for resale in connection with, any distribution or public offering thereof
within the meaning of the Securities Act of 1933, as amended, (the "Securities
Act") or any state Blue Sky laws.

                        (b) The Holder understands that the Warrant and the
Warrant Shares have not been registered under the Securities Act by reason of
their issuance in a transaction exempt from the registration and prospectus
delivery requirements of the Securities Act pursuant to Section 4(2)

                                                                             -3-
<PAGE>

thereof, that the Company has no present intention of registering the Warrant or
the Warrant Shares, that the Warrant and the Warrant Shares must be held by the
Holder indefinitely, and that the Holder must therefor bear the economic risk of
such investment indefinitely, unless a subsequent disposition thereof is
registered under the Securities Act or is exempt from registration.

                        (c) The Holder further understands that the sale of the
securities which are the subject of this Agreement has not been qualified with
the Commissioner of Corporations of the State of California and the issuance of
such securities or the payment or receipt of any part of the consideration
therefor prior to such qualification is unlawful unless an exemption from such
qualification is available. The rights of all parties to this Agreement are
expressly conditioned upon such qualification being obtained or such exemption
being available. The Holder further agrees that it will not offer, sell or
otherwise dispose of this Warrant or any Warrant Shares to be issued upon
exercise hereof except under circumstances which will not result in a violation
of the Securities Act or any state securities law. This Warrant and all Warrant
Shares issued upon exercise of this Warrant shall be stamped or imprinted with
legends in substantially the following form:

                THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN
                ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE
                SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR
                REGISTERED OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. THESE
                SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR TRANSFERRED
                UNLESS (I) THERE IS AN EFFECTIVE REGISTRATION STATEMENT COVERING
                SUCH OFFER, SALE OR TRANSFER OR (II) THERE IS AN OPINION OF
                COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY, THAT EXEMPTIONS
                FROM THE REGISTRATION, QUALIFICATION AND PROSPECTUS DELIVERY
                REQUIREMENTS OF THE SECURITIES ACT AND OF ANY APPLICABLE STATE
                SECURITIES LAWS FOR SUCH OFFER, SALE OR TRANSFER ARE AVAILABLE.

                        (d) During the negotiation of the transactions
contemplated herein, the Holder and its representatives and legal counsel have
been afforded full and free access to corporate books, financial statements,
records, contracts, documents, and other information concerning the Company and
to its offices and facilities, have been afforded an opportunity to ask such
questions of the Company's officers, employees, agents, accountants and
representatives concerning the Company's business, operations, financial
condition, assets, liabilities and other relevant matters as they have deemed
necessary or desirable, and have been given all such information as has been
requested, in order to evaluate the merits and risks of the prospective
investments contemplated herein.

                        (e) The Holder and its representatives have been solely
responsible for the Holder's own "due diligence" investigation of the Company
and the Company's management and business, for its own analysis of the merits
and risks of this investment, and for its own analysis of the fairness and
desirability of the terms of the investment. In taking any action or performing
any role relative to the arranging of the proposed investment, the Holder has
acted solely in its own

                                                                             -4-
<PAGE>

interest, and the Holder (or any of its agents or employees) has not acted as an
agent of the Company. The Holder has such knowledge and experience in financial
and business matters that the Holder is capable of evaluating the merits and
risks of the purchase of the Warrant pursuant to the terms of this Agreement and
of protecting the Holder's interests in connection therewith.

                        (f) The Holder is an "accredited investor" as defined in
Rule 501 of the Securities Act.

        9. RESERVATION AND AUTHORIZATION OF STOCK. The Company covenants that
during the term this Warrant is exercisable, the Company will reserve from its
authorized and unissued Common Stock a sufficient number of shares to provide
for the issuance of the Warrant Shares upon the exercise of this Warrant. The
Company further covenants that all shares that may be issued upon the exercise
of rights represented by this Warrant and payment of the Exercise Price, all as
set forth herein, will be validly issued, fully paid and non-assessable and free
from all insurance or transfer taxes, liens, and charges in respect of the issue
thereof created by the Company (other than taxes in respect of any transfer
occurring contemporaneously or as otherwise specified herein). The Company
agrees that issuance of this Warrant shall constitute full authority to the
Company's officers who are charged with the duty of executing stock certificates
to execute and issue the necessary certificates for shares of Common Stock and
any other securities of the Company upon the exercise of this Warrant.

        10. LOST DOCUMENTS. Upon receipt by the Company of evidence and
indemnity satisfactory to it of the loss, theft, destruction or mutilation of,
and upon surrender and cancellation of this Warrant, if mutilated, the Company
will make and deliver to the Holder, in lieu of this Warrant, a new Warrant of
the same series and of like tenor of this Warrant.

        11. ADJUSTMENTS. The number of shares purchasable hereunder are subject
to adjustment from time to time as follows:

                11.1 Reorganization, Reclassification, Merger or Conveyance. If
any capital reorganization or reclassification of the capital stock of the
Company shall be effected in such a way that holders of Common Stock shall be
entitled to receive stock, securities or assets with respect to or in exchange
for Common Stock, or in the event the Company (or any such other corporation)
merges with or into another corporation or conveys all or substantially all of
its assets to another corporation and this Warrant does not terminate in
accordance with the provisions of Section 3.1 above, then, as a condition of
such reorganization, reclassification merger or conveyance, lawful and adequate
provisions shall be made whereby the Holder of the Warrant shall thereafter have
the right to receive upon the basis and upon the terms and conditions specified
herein and in lieu of the shares of Common Stock immediately theretofore
receivable upon the exercise of the Warrant, such shares of stock, securities or
assets (including cash) as may be issued or payable with respect to or in
exchange for a number of outstanding shares of such Common Stock equal to the
number of shares of such stock immediately theretofore so receivable, had such
reorganization, reclassification, merger or conveyance not taken place, and in
any such case appropriate provision shall be made with respect to the rights and
interests of such holder to the end that the provisions hereof (including,
without limitation, provisions for adjustments of the Exercise Price) shall
thereafter be applicable, as

                                                                             -5-
<PAGE>

nearly as may be, in relation to any shares of stock, securities or assets
thereafter deliverable upon the exercise of such exercise rights.

                11.2 Split, Subdivision or Combination of Shares. If the Company
at any time while this Warrant, or any portion thereof, remains outstanding and
unexpired shall split, subdivide or combine the securities as to which purchase
rights under this Warrant exist, into a different number of securities of the
same class, the Exercise Price for such securities shall be proportionately
decreased in the case of a split or subdivision or proportionately increased in
the case of a combination and the number of the securities as to which purchaser
rights under this Warrant exist shall be increased or decreased proportionately
in accordance with such split subdivision or combination.

                11.3 Certificate as to Adjustments. Upon the occurrence of each
adjustment or readjustment pursuant to this Section 12, the Company at its
expense shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to the Secretary of the Company for filing in
the Company's records and to the Holder a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based. The Company shall, upon the written
request, at any time, of the Holder, furnish or cause to be furnished to the
Holder a like certificate setting forth: (a) such adjustments and readjustments;
(b) the Exercise Price at the time in effect; and (c) the number of shares and
the amount, if any, of other property that at the time would be received upon
the exercise of the Warrant. No such adjustment or change shall compel immediate
exercise of this Warrant or otherwise affect the Termination Date of this
Warrant. Irrespective of any adjustment or other changes made hereunder, this
Warrant (or any other warrant issued in exchange therefor) may continue to
express the same number and kind of Warrant Shares (except to the extent
exercised) and the same Exercise Price as are initially stated herein.

                11.4 Other Adjustments (No Impairment). If any change in the
Common Stock or any other event occurs as to which the other provisions of this
Section 12 are not strictly applicable or if strictly applicable would not
fairly protect the purchase rights of the Holder in accordance with such
provisions, then the Company shall make an adjustment in the number and class of
shares available under the Warrant, the Exercise Price or the application of
such provisions, so as to protect such purchase rights as aforesaid.

        12. GENERAL PROVISIONS.

                12.1 Governing Law. This Warrant shall be governed by and
construed under the laws of the State of California, excluding that body of law
relating to conflict of laws.

                12.2 Survival. The representations, warranties, covenants and
agreements made herein shall survive the execution of this Agreement and the
exercise of this Warrant.

                12.3 Successors and Assigns. Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors and administrators of
the parties hereto.

                                                                             -6-
<PAGE>

                12.4 Entire Agreement. This Agreement and the exhibits to this
Agreement constitute the full and entire understanding and agreement between the
parties with regard to the subjects hereof and thereof.

                12.5 Notices, etc. All notices and other communications required
or permitted hereunder shall be in writing and shall be sent via facsimile,
overnight courier service or mailed by certified or registered mail, postage
prepaid, return receipt requested, addressed or sent (a) if to the Holder, at
the address or facsimile number of the Holder set forth below such party's name
on the signature page hereto, or at such other address or number as the Holder
shall have furnished to the Company in writing, or (b) if to the Company, at
5850 Hellyer Avenue, San Jose, 95138, facsimile: (408) 360-4951, attention:
Chief Financial Officer or at such other address or number as the Company shall
have furnished to the Holder in writing.

                12.6 Amendments. This Warrant may be amended and the observance
of any term of this Warrant may be waived only with the written consent of the
Company and the Holder.

                12.7 Separability. In case any provision of this Agreement shall
be declared invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

                12.8 Counterparts. This Agreement may be executed in any number
of counterparts each of which shall be an original, but all of which together
shall constitute one instrument.

                                      *****

                                                                             -7-
<PAGE>

        IN WITNESS WHEREOF, the Company and the Holder have caused the Warrant
to be executed by a duly authorized officer thereof as of the effective date of
this Warrant set forth above.

                                       GADZOOX NETWORKS, INC.

                                       By: /s/ Michael Parides
                                          --------------------------------------
                                           Michael Parides
                                           Chief Executive Officer

AGREED AND ACCEPTED:

PACIFIC BUSINESS FUNDING,
A DIVISION OF CUPERTINO NATIONAL BANK

By: /s/ Kevin O'Hare
   ----------------------------------

Print Name:
           --------------------------

Title: Executive Vice-President
      -------------------------------

<PAGE>

                                    EXHIBIT A
                               NOTICE OF EXERCISE

TO: GADZOOX NETWORKS, INC.

        (1) The undersigned hereby elects to purchase ________ shares of Common
Stock ("Common Stock") of Gadzoox Networks, Inc. pursuant to the terms of the
attached Agreement and Warrant to Purchase Common Stock (the "Warrant"), and
tenders herewith payment of the Exercise Price for such shares in full at the
price per share provided in the Warrant.

        (2) The undersigned hereby confirms and acknowledges that the
representations and warranties set forth in Section 8 of the Warrant remain true
and correct concerning the Holder as of the date hereof, that the shares of
Common Stock are being acquired solely for the account of the undersigned and
not as a nominee for any other party, and for investment, and that the
undersigned will not offer, sell, or otherwise dispose of any such shares of
Common Stock except under circumstances that will not result in a violation of
the Securities Act of 1933, as amended, or any state securities laws.

        (3) Please issue a certificate or certificates representing said shares
of Common Stock in the name of the undersigned or in such other name as is
specified below:

                                       PACIFIC BUSINESS FUNDING,
                                       A DIVISION OF CUPERTINO NATIONAL BANK

                                       -----------------------------------------
                                       Print Name

                                       -----------------------------------------
                                       Signature

                                       -----------------------------------------
                                       Title

                                       -----------------------------------------
                                       Date
<PAGE>

                                    EXHIBIT B
                               NET EXERCISE NOTICE

TO: GADZOOX NETWORKS, INC.

        (1) The undersigned hereby elects to convert the attached Warrant to
into ________ shares of Common Stock ("Common Stock') of Gadzoox Networks, Inc.
pursuant to the terms of the attached Agreement and Warrant to Purchase Common
Stock (the "Warrant").

        (2) In converting such Warrant, the undersigned hereby confirms and
acknowledges that the representations and warranties set forth in Section 8 of
the Warrant remain true and correct concerning the Holder as of the date hereof,
that the shares of Common Stock are being acquired solely for the account of the
undersigned and not as a nominee for any other party, and for investment, and
that the undersigned will not offer, sell, or otherwise dispose of any such
shares of Common Stock except under circumstances that will not result in a
violation of the Securities Act of 1933, as amended, or any state securities
laws.

        (3) Please issue a certificate or certificates representing said shares
of Common Stock in the name of the undersigned or in such other name as is
specified below:

                                       PACIFIC BUSINESS FUNDING,
                                       A DIVISION OF CUPERTINO NATIONAL BANK

                                       -----------------------------------------
                                       Print Name

                                       -----------------------------------------
                                       Signature

                                       -----------------------------------------
                                       Title

                                       -----------------------------------------
                                       Date<PAGE>
                                                                   Exhibit 10.34

                     [PACIFIC BUSINESS FUNDING LETTERHEAD]

                        RECEIVABLES FINANCING AGREEMENT

     This Receivables Financing Agreement (the "Agreement"), dated as of
SEPTEMBER 25, 2001, is entered into by and between GADZOOX NETWORKS, INC., a
[ [X] corporation, [ ] partnership, [ ] sole proprietorship] ("Borrower") having
its principal place of business and chief executive office at the address set
forth below Borrower's signature, and Pacific Business Funding, a division of
Cupertino National Bank ("Lender") having an office at the address identified
above.

     Capitalized terms used in this Agreement shall have the meanings assigned
to them in Section 13, Definitions.

1.   FINANCE OF ACCOUNTS.

     1.1  SCHEDULE OF ACCOUNTS. Borrower may, at any time, request that Lender
finance Accounts. Any such request by Borrower shall be made by delivering to
Lender a Schedule of Accounts (the "Schedule of Accounts") which describes in
detail the Accounts Borrower is requesting Lender to finance, including, (a)
the name and address of the Account Debtor of each such Account, (b) the amount
owned by the Account Debtor of each such Account, and (c) the date and number
of the invoice evidencing each such Account. Each Schedule of Accounts shall
have attached to it an invoice for each Account described on the Schedule of
Accounts, and shall be signed by an authorized representative of Borrower.

     1.2  DISCRETIONARY APPROVAL OF ACCOUNTS. Lender may, in its sole
discretion, finance any Account included in a Schedule of Accounts, but is
under no obligation to finance any such Account. Lender may exercise its sole
discretion in approving each Account and the credit of each Account Debtor
before financing any Account.

     1.3  PAYMENT OF ADVANCE; CREATION OF A BOOK RESERVE. Upon approval, in
Lender's sole discretion, of any of the Accounts described on a Schedule of
Accounts, Lender shall make an advance to Borrower for any approved Account in
an amount equal to EIGHTY percent (80%) of the face amount of such approved
Account (the "Advance"). Lender may, from time to time, in its discretion, upon
notice to Borrower, change the percentage of the Advance. Upon payment of the
Advance to Borrower, Lender shall also create a reserve on Lender's books and
records with respect to each Financed Account in an amount equal to the face
amount of the Financed Account minus the Advance for such Financed Account
(the ""Reserve"). Notwithstanding the foregoing, in no event shall the Reserve
with respect to all Financed Accounts outstanding at any time be less than
TWENTY percent (20%) of the Account Balance. Lender may, in its discretion,
upon notice to Borrower, increase the percentage of the Reserve at any time.

     1.4  COLLECTION OF ACCOUNTS. At the time Lender pays the Advance with
respect to any Account, such Account shall constitute a Financed Account, and
Borrower hereby absolutely assigns to Lender, all of Borrower's right to
collect each Financed Account. Each Financed Account shall be collected
directly by Lender. At the request of Lender, Borrower and Lender shall jointly
notify each Account Debtor by letter that Financed Accounts owned by such
Account Debtor have been assigned and are payable to Lender. Such notification
shall be in form and substance satisfactory to Lender. Borrower shall not take
or permit any action to change or revoke any notification without Lender's
prior written consent and shall not request any Account Debtor to pay any
Financed Account to Borrower. Notwithstanding the foregoing, in the event
Borrower receives any payments of any Financed Accounts, Borrower shall (A)
immediately notify Lender of such payment, (B) hold such payment in trust and
safekeeping for Lender, and (C) immediately turn over to Lender the identical
checks, monies or other forms of payment received, with any necessary
endorsement or assignment. Lender shall have the right to endorse Borrower's
name on all payments received in connection with each Financed Account and on
any other proceeds of Collateral. If Lender receives a check or item which
is payment for both a Financed Account and a non-Financed Account, the funds
shall first be applied to the Financed Account and, so long as there does not
then exist an Event of Default or any event that with notice or lapse of time
would constitute an Event of Default, the excess shall be remitted to Borrower.
In the event Lender receives any other payments of non-Financed Accounts, Lender
shall remit to Borrower the collections of such non-Financed Accounts;
provided, that if any Event of Default or event that with notice or lapse of
time or otherwise would constitute an Event of Default then exists, Lender shall
have no duty to remit any such collections, which collections constitute
Collateral, and may apply such collections to reduce the Obligations.

2.   FEES AND CUSTOMER PAYMENTS.

     2.1  FINANCE FEES. Borrower shall pay to Lender on each Settlement Date, a
finance fee in an amount equal to SIXTY THREE HUNDREDS percent (.0063%) per
month of the average daily Account Balance outstanding during the Settlement
Period ending on such Settlement Date (the "Finance Fees"). Such accrued
Finance Fees shall be netted against the Reserve as described in Section 3.3.

     2.2  ADMINISTRATIVE FEE. Borrower shall pay to Lender on each Settlement
Date, an Administrative Fee equal to ONE HALF OF ONE percent (.5%) of the face
amount of each Account financed by Lender during the Settlement Period ending
on such Settlement Date (the "Administrative Fee)". All Administrative Fees
shall be netted against the Reserve as described in Section 3.3.

     2.3  MAXIMUM LAWFUL RATE. In no event shall any charges that may
constitute interest hereunder exceed the highest rate permitted under
applicable law. In the event that a count of competent jurisdiction makes a
final determination that Lender has received interest hereunder in excess of
the maximum lawful rate, then such excess shall be deemed a payment of
principal and the interest payable hereunder deemed amended to the amount
payable under the maximum lawful rate.

     2.4  CREDITING CUSTOMER PAYMENTS. Upon Lender's receipt of payment of a
Financed Account, Lender shall promptly credit such customer payment (the
"Customer Payments") to the amount outstanding with respect to such Financed
Account. Notwithstanding the foregoing, if any Customer Payment is subsequently
dishonored or Lender does not receive good funds for any reason, the amount of
such uncollected Customer Payment shall be included in the Account Balances as
if such Customer Payment had not been received, and Finance Fees shall accrue
thereon, and the credit to the specific Financed Account shall be reversed.
Notwithstanding the foregoing, upon the occurrence of an Event of Default,
Lender shall apply all Customer Payments to Borrower's Obligations under this
Agreement in such order and manner as Lender shall, in its sole discretion,
determine.

     2.5  ACCOUNTING. Lender shall deliver to Borrower after each Settlement
Date, a statement of Borrower's account which shall include an accounting of
the transactions for that Settlement Period, including the amount of all
Finance Fees, Administrative Fees, Adjustments, Chargeback Amounts, Customer
Payments and Financed Accounts. The accounting shall constitute an account
stated and shall be binding on Borrower and deemed correct unless Borrower
delivers to Lender a written objection within thirty (30) days after such
accounting is mailed to Borrower.

(Page 1 of 4)

<PAGE>

3.   ADJUSTMENTS, CHARGEBACKS AND REMITTANCES.

     3.1. ADJUSTMENTS. In the event any Account Debtor asserts any offset,
defense, counterclaim, dispute, discount, allowance, right of return, right of
recoupment, or warranty claim with respect to a Financial Account, or pays less
than the face amount of such Financed Account (each, an "Adjustment"), Lender
may, in its sole discretion, either (A) deduct the amount of the Adjustment in
calculating the Remittance, or (B) chargeback to Borrower the Financial Account
with respect to which the Adjustment is asserted. Borrower shall advise Lender
immediately upon learning of any Adjustment asserted by any Account Debtor.

     3.2  CHARGEBACKS. Lender shall have the right to chargeback to Borrower
any Financed Account:

          (A)  which remains unpaid ninety (90) calendar days after the invoice
               date;

          (B)  with respect to which there has been a breach of any warranty,
               representation, covenant or agreement set forth in this
               Agreement;

          (C)  with respect to which the Account Debtor asserts any Adjustment;
               or

          (D)  which is owed by an Account Debtor who has filed, or has had
               filed against it, any bankruptcy case, insolvency proceeding,
               assignment for the benefit of creditors, receivership or
               insolvency proceeding, or who has become insolvent (as defined
               in the United States Bankruptcy Code) or who is generally not
               paying its debts as such debts become due.

Upon demand by Lender, Borrower shall pay to Lender the full face amount of any
Financed Account which has been charged back to Borrower pursuant to this
Section 3.2, or to the extent partial payment has been made, the amount by
which the face amount of such Financed Account exceeds such partial payment,
together with any attorneys' fees and costs incurred by Lender in connection
with collecting such Financed Account (collectively, the "Chargeback Amount").
Lender shall advise Borrower regarding how the Chargeback Amount shall be paid,
which may be by any one or a combination of the following, in Lender's sole
discretion: (1) payment in cash immediately upon demand; (2) deduction from or
offset against any Remittance that would otherwise be payable to Borrower; (3)
payment from any Advances that may otherwise be made to Borrower; (4)
adjustment to the Reserve pursuant to Section 1.3 hereof; or (5) delivery of
substitute Accounts and a Schedule of Accounts acceptable to Lender, which
Accounts shall constitute Financed Accounts.

     3.3  REMITTANCE. Lender shall remit to Borrower after the Settlement Date,
the amount, if any, which Lender owes to Borrower at the end of the Settlement
Period based on the following calculations set forth below (the "Remittance");
provided, that if there then exists any Event of Default or any event or
condition that with notice or lapse of time would constitute an Event of
Default, Lender shall not be obligated to remit any payments to Borrower. If
the amount resulting from the following calculation is a positive number, such
amount is the amount of the Remittance for such Settlement Period. If the
resulting amount is a negative number, such amount is the amount owed by
Borrower to Lender.

     The calculations to be used are as follows:

          (A)  The sum of the following:

               (1)  The Reserve as of the beginning of the subject Settlement
                    Period, plus

               (2)  the Reserve created for each Account financed during the
                    subject Settlement Period;

MINUS

          (B)  The sum of the following:

               (1)  Finance Fees accrued during the subject Settlement Period;
                    plus

               (2)  Administrative Fees accrued during the subject Settlement
                    Period; plus

               (3)  Adjustments during the subject Settlement Period; plus

               (4)  Chargeback Amounts to the extent Lender has agreed to
                    accept payment of any such Chargeback Amount by deduction
                    from the Remittance; plus

               (5)  All professional fees and expenses as set forth in Section
                    10 for which oral or written demand has been made by Lender
                    during the subject Settlement Period; plus

               (6)  The Reserve for the Account Balance as of the first day of
                    the following Settlement Period in the minimum percentage
                    set forth in Section 1.3 hereof.

If the foregoing calculations result in a Remittance payable to Borrower,
Lender shall make such payment by check, subject to Lender's rights of offset
and recoupment, and its right to deduct any Chargeback Amount as set forth in
Section 3.2. If the foregoing calculations result in an amount due to Lender
from Borrower, Borrower shall make such payment by any one or a combination of
the methods set forth in Section 3.2. hereof for chargebacks, as determined by
Lender in its discretion.

4.   POWER OF ATTORNEY. Borrower hereby appoints Lender and its designees as
Borrower's true and lawful attorney in fact, to exercise in Lender's
discretion, and regardless of whether an Event of Default is then existing, all
of the following powers, such powers being coupled with an interest: (A) to
notify all Account Debtors with respect to the Financed Accounts to make
payment directly to Lender; (B) to receive, deposit, and endorse Borrower's
name on all checks, drafts, money orders and other forms of payment relating to
the Financed Accounts; (C) to demand, collect, receive, sue, and give releases
to any Account Debtor for the monies due or which may become due on or in
connection with the Financed Accounts; (D) to compromise, prosecute, or defend
any action, claim, case, or proceeding relating to the Financed Accounts,
including the filing of a claim or the voting of such claims in any bankruptcy
case, all in Lender's name or Borrower's name, as Lender may elect; (E) to
sell, assign, transfer, pledge, compromise, or discharge any Financed Accounts;
(F) to receive, open, redirect and dispose of all mail addressed to Borrower
for the purpose of collecting the Financed Accounts and to take all the actions
permitted in subsection (B) above with respect to any payments in any such
mail; (G) to execute in the name of Borrower and file against Borrower in favor
of Lender such financing statements and other agreements as Lender deems
necessary to evidence or perfect its security interest in the Financed Accounts
and the other Collateral; and (H) to do all acts and things necessary or
expedient, in furtherance of any such purposes. Upon the occurrence of an Event
of Default, all of the power of attorney rights granted by Borrower to Lender
hereunder shall be applicable with respect to all Collateral.

5.   CONTINUING REPRESENTATIONS, WARRANTIES AND COVENANTS. To induce Lender to
enter into this Agreement and finance Accounts, and with full knowledge that
Lender is relying on the truth and accuracy of the following in determining
whether to finance any Account, Borrower represents, warrants, covenants and
agrees as follows, which representations, warranties, covenants and agreements
shall survive the execution and delivery of this Agreement:

          (A)  The information contained in each Schedule of Accounts is true
               and correct;

          (B)  Each Schedule of Accounts is signed by an authorized
               representative of Borrower, and Lender shall have the right to
               rely on such signature as an authorized signature of Borrower;

(Page 2 of 4)

<PAGE>
          (C)  Borrower is the sole and absolute owner of each Account
               described in each Schedule of Accounts and has the legal right
               to transfer and assign such Account to Lender;

          (D)  Borrower has performed all obligations required by the Account
               Debtor in connection with each Account described in each
               Schedule of Accounts and payment of each such Account is not
               contingent upon the fulfillment of any obligation or contract,
               past or future;

          (E)  Each Account described on each Schedule of Accounts is correctly
               stated therein, is not in dispute, is presently and
               unconditionally owing at the time stated in the invoice
               evidencing such Account as attached to the Schedule of Accounts,
               is not past due or in default, represents a bona fide
               indebtedness arising from the actual sale of goods or
               performance of services to an Account Debtor in the ordinary
               course of Borrower's business which has been received and
               finally accepted by the Account Debtor;

          (F)  Each Account set forth on each Schedule of Accounts is not
               subject to any offset, defense or counterclaim of any kind,
               whether bona fide or otherwise, and no agreement has been made
               under which the Account Debtor may claim any deduction or
               discount, except as otherwise stated in the Schedule of Accounts;

          (G)  Each Account Debtor identified on each Schedule of Accounts is
               liable for the amount set forth on such Schedule of Accounts
               and will not object to the payment for, or the quality or the
               quantity of the goods or services to which any Account described
               on such Schedule of Accounts relates;

          (H)  Borrower, and to Borrower's best knowledge, each Account Debtor
               set forth in each Schedule of Accounts, is and shall remain
               solvent in that the present saleable value of such entity's
               assets exceeds the total of such entity's liabilities;

          (I)  Borrower has not, as of the time Borrower accepts an Advance
               from Lender, filed or had filed against it a petition for
               relief under the United States Bankruptcy Code;

          (J)  Each Account and all other Collateral are free and clear of any
               and all liens, security interests and encumbrances of any kind,
               other than those in favor of Lender, and Borrower will not
               assign, transfer, or grant any lien or security interest in any
               Accounts or other Collateral to any other party, without
               Lender's prior written consent;

          (K)  Borrower has not sold, assigned, transferred, pledged or
               otherwise conveyed any Financed Accounts to any party other than
               Lender, and Borrower shall not sell, assign, transfer, pledge or
               otherwise convey any Collateral without Lender's prior consent,
               except for the financing of Accounts to Lender and the sale of
               finished inventory in Borrower's normal course of business;

          (L)  Borrower's name and form of organization are as set forth at the
               beginning of this Agreement, and Borrower's chief executive
               office, place of business and place where Collateral and records
               concerning Accounts and other Collateral are kept are as set
               forth below Borrower's signature, and Borrower will give Lender
               at least thirty (30) days prior written notice if such name,
               organization, place of business, location of Collateral or
               records concerning Collateral is to be changed or added and
               shall execute any documents necessary to perfect Lender's
               interest in the Financed Accounts and the other Collateral; and

          (M)  Borrower shall pay all of its normal gross payroll for
               employees, and all federal and state taxes, as and when due,
               including all payroll and withholding taxes and state sales
               taxes.

6.  GRANT AND SECURITY INTEREST.  To secure the prompt payment and performance
of all of Borrower's Obligations to Lender, Borrower hereby grants to Lender a
continuing lien upon and security interest in, and right of set off with
respect to, all of Borrower's right, title and interest in, to and under the
following, whether now owned by or owing to, or hereafter acquired by or
arising in favor of, Borrower, and regardless of where located (collectively
the "Collateral"):

          (A)  All accounts, accounts receivable, goods represented by accounts
               or accounts receivable (including unpaid sellers' rights of
               rescission, replevin, reclamation and stoppage in transit and
               rights to returned, reclaimed or repossessed goods), chattel
               paper, contract rights, documents, instruments, letters of
               credit, banker's acceptances, drafts, securities and general
               intangibles, including all claims, causes of action, deposit
               accounts, rights to receive tax refunds, rights in and claims
               under insurance policies (including rights to unearned premiums),
               customer lists, copyrights, patents, trademarks, license
               agreements, goodwill associated with trademarks and trademark
               licenses, and other intellectual property of every kind and other
               rights to payment;

          (B)  All inventory;

          (C)  All monies, remittances, and other amounts due under this
               Agreement and any other agreement between Lender and Borrower;

          (D)  All equipment, machinery, motor vehicles, furniture, fixtures,
               tools and supplies;

          (E)  All investment securities;

          (F)  All farm products, crops, timber, minerals and the like
               (including oil and gas);

          (G)  All books and records relating to the foregoing, including all
               computer programs, printed output and computer readable data;

          (H)  All accessions to, and substitutions and replacements for, each
               of the foregoing; and

          (I)  All proceeds and products of the foregoing, whether due to
               voluntary or involuntary disposition, including insurance
               proceeds. Borrower shall sign and deliver to Lender UCC
               financing statements, in form acceptable to Lender. Borrower
               agrees to deliver to Lender the originals of all instruments,
               chattel paper and documents evidencing or related to Financed
               Accounts and other Collateral.

7.  DEFAULT.  The occurrence of any one or more of the following shall
constitute an event of default under this Agreement (each, an "Event of
Default");

          (A)  Borrower fails to pay any amount owed to Lender as and when due
               under this Agreement or fails to pay any other Obligations as
               and when due;

          (B)  Any warranty or representation by Borrower to Lender under this
               Agreement is incorrect or untrue when made or thereafter becomes
               untrue or incorrect;

          (C)  Borrower fails to perform or breaches any covenant or agreement
               set forth in this Agreement or any other agreement between
               Lender and Borrower;

          (D)  There shall be commenced by or against Borrower any voluntary or
               involuntary case under the United States Bankruptcy Code, or any
               assignment for the benefit of creditors, or appointment of a
               receiver or custodian for any of Borrower's assets;

          (E)  Borrower shall become insolvent in that its debts are greater
               than the fair value of its assets, or Borrower is generally not
               paying its debts as they become due or is left with
               unreasonably small capital;

          (F)  Any involuntary lien, garnishment, attachment or the like is
               issued against or attaches to the Financed Accounts or the other
               Collateral;

          (G)  An event of default shall occur under any guaranty executed by
               any guarantor of the Obligations, or any material provision of
               any such guaranty shall for any reason cease to be valid or
               enforceable or any such guaranty shall be repudiated or
               terminated, including by operation of law; or

          (H)  A default or event of default shall occur under any agreement
               between Borrower and any creditor of Borrower who has entered
               into a subordination agreement with Lender.

8.  REMEDIES UPON DEFAULT.  Upon the occurrence of an Event of Default, Lender
may, without notice, (A) without implying any obligation to finance Accounts,
cease financing Accounts; (B) accelerate the payment of all Obligations, which
Obligations shall be due and payable in full without demand; (C) exercise all
the rights and remedies under this Agreement and under applicable law,
including the rights and remedies of a secured party under the California
Uniform Commercial Code. Without limiting the generality of the foregoing,
Lender may (1) exercise all of the power of attorney rights described in
Section 4 with respect to all Collateral, and (2) collect, dispose of, sell,
lease, use, and realize upon all Financed Accounts and other Collateral in any
commercially reasonable manner. Borrower and Lender agree that any notice of
sale required to be given to Borrower shall be deemed to be reasonable if
given five (5) days prior to the date on or after which any sale may be held.
All remedies set forth herein shall be cumulative and none exclusive.

(Page 3 of 4)

<PAGE>
9. ACCRUAL OF INTEREST. If any amount owed by Borrower hereunder is not paid
when due, including any amounts due under Section 3.3, Chargeback Amounts,
professional fees and expenses under Section 10 and any other Obligations, such
amounts shall bear interest at a per annum rate equal to the rate used to
calculate the Finance Fees, annualized, until Lender receives payment in good
funds in the full amount of such Obligations.

10. ATTORNEYS' FEES. Borrower shall pay to Lender immediately upon demand, all
costs and expenses, including reasonable fees and expenses of attorneys and
other professionals, that Lender incurs in connection with any and all of the
following: (A) preparing, amending, supplementing, negotiating and enforcing
this Agreement, or any other agreement executed in connection herewith; (B)
perfecting, protecting or enforcing Lender's security interest in the Financed
Accounts and the other Collateral; (C) collecting the Financed Accounts and the
Obligations; (D) defending or in any way addressing claims made or litigation
by or against Lender as a result of Lender's relationship with Borrower or any
guarantor; and (E) representing Lender in connection with any bankruptcy case
or insolvency proceeding involving Borrower, any Financed Account, any other
Collateral or any Account Debtor. Any attorneys' fees and expenses may, at
Lender's option, be netted against the reserve as set forth in Section 3.3.

11. TERM AND TERMINATION. The term of this Agreement shall be for one (1) year
from the date hereof, and from year to year thereafter unless terminated in
writing by Lender or Borrower. Borrower and Lender shall each have the right to
terminate this Agreement at any time. Notwithstanding the foregoing, any
termination of this Agreement shall not affect Lender's security interest in the
Collateral, and this Agreement shall continue to be effective, and Lender's
right and remedies hereunder shall survive such termination, until all
transactions entered into and Obligations incurred hereunder or in connection
herewith have been completed and satisfied in full.

12. MISCELLANEOUS.

     12.1 SEVERABILITY. In the event that any provision of this Agreement is
held to be invalid or unenforceable, this Agreement will be construed as not
containing such provision and the remainder of the Agreement shall remain in
full force and effect.

     12.2 CHOICE OF LAW. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of California, without giving effect to
principles of conflicts of law.

     12.3 NOTICES. All notices shall be given to Lender and Borrower at the
addresses set forth in this Agreement and shall be deemed to have been
delivered and received: (A) if mailed, three (3) calendar days after deposited
in the United States mail, first class, postage prepaid; (B) one (1) calendar
day after deposit with an overnight mail or messenger service; (C) on the same
date of transmission if sent by hand delivery, telecopy, telefax or telex.

     12.4 TITLES AND SECTION HEADINGS. The titles and section headings used
herein are for convenience only and shall not be used in interpreting this
Agreement.

13. DEFINITIONS. All terms used herein which are defined in the California
Uniform Commercial Code shall have the meaning given therein unless otherwise
defined in this Agreement. The term "including" is not limiting or exclusive.
When used herein, the following terms shall have the following meanings.

     13.1 "ACCOUNT" shall mean all accounts, accounts receivable, chattel
paper, contract rights, documents, general intangibles, instruments, letters of
credit, banker's acceptance, and other rights to payment, and proceeds thereof.

     13.2 "ACCOUNT BALANCE" shall mean, on any given day, the gross face amount
of all Financed Accounts unpaid on that day.

     13.3 "ACCOUNT DEBTOR" shall have the meaning set forth in the California
Uniform Commercial Code and shall include any person liable on any Financed
Account, including any guarantor of the Financed Account and any issuer of a
letter of credit or banker's acceptance.

     13.4 "ADJUSTMENT(S)" shall have the meaning set forth in Section 3.1.

     13.5 "ADMINISTRATIVE FEE" shall have the meaning as set forth in Section
2.2.

     13.6 "ADVANCE" shall have the meaning set forth in Section 1.3.

     13.7 "CHARGEBACK AMOUNT" shall have the meaning set forth in Section 3.2.

     13.8 "COLLATERAL" shall have the meaning set forth in Section 6.

     13.9 "CUSTOMER PAYMENTS" shall have the meaning set forth in Section 2.4.

     13.10 "EVENT OF DEFAULT" shall have the meaning set forth in Section 7.

     13.11 "FINANCE FEES" shall have the meaning set forth in Section 2.1.

     13.12 "FINANCED ACCOUNTS" shall mean all Accounts identified on any
Schedule of Accounts delivered by Borrower to Lender which Lender elects to
finance and against such Lender makes an Advance, and all monies due or to
become due thereunder.

     13.13 "SCHEDULE OF ACCOUNTS" shall have the meaning set forth in Section
1.1.

     13.14 "OBLIGATIONS" shall mean all advances, obligations, indebtedness
and duties owing by Borrower to Lender of any kind or nature, present or
future, arising under or in connection with this Agreement or any other
agreement entered into between Lender and Borrower, whether direct or indirect,
including all Advances, Finance Fees, Administrative Fees, Chargeback Amounts,
attorneys' fees and expenses.

     13.15 "REMITTANCE" shall have the meaning set forth in Section 1.3.

     13.16 "RESERVE" shall have the meaning set forth in Section 1.3.

     13.17 "SETTLEMENT DATE" shall mean the last calendar day of each
Settlement Period.

     13.18 "SETTLEMENT PERIOD" shall mean each calendar month of each year.

          IN WITNESS WHEREOF, Borrower and Lender have executed this Agreement
on the day and year written above.

                                         ADDRESS OF BORROWER, CHIEF EXECUTIVE
"LENDER"                                 OFFICER AND LOCATION OF COLLATERAL:

PACIFIC BUSINESS FUNDING, a division     Street:  5850 Hellyer Ave.
of Cupertino National Bank                       -------------------------------

                                         City:  San Jose
                                              ----------------------------------
By /s/ Kevin O'Hare                      State:  CA   Zip Code:
  ----------------------------------           ------          ---------------

Title Executive Vice-President           Telephone No.: (401) 360-6005
     -------------------------------                    ----------------------

"BORROWER"                               Facsimile No.:  (401) 311-6364
                                                        ----------------------
 /s/ Michael Parides                     OTHER LOCATIONS OF COLLATERAL, IF ANY,
------------------------------------     IN ADDITION TO ABOVE:

By Michael Parides                       ---------------------------------------
  ----------------------------------
                                         ---------------------------------------
Title President and Chief Executive
      Officer
     -------------------------------

(Page 4 of 4)

<PAGE>
                       AMENDMENT TO RECEIVABLES AGREEMENT

This Amendment to Receivables Financing Agreement (this "Amendment") is entered
into as of this 25th day of September, 2001, by and among Gadzook Networks, Inc.
("Borrower") and Pacific Business Funding, a division of Cupertino National Bank
("Lender").

        WHEREAS, pursuant to that certain Receivables Financing Agreement dated
as of ________, by and between Borrower and Lender, as from time to time
amended, restated, supplemented or otherwise modified, (the "Receivables
Financing Agreement"), Lender had made or will hereafter make, Advances to
Borrower for the financing of Accounts. All capitalized terms used but not
otherwise defined in this Amendment shall have the respective meanings assigned
to such terms in the Receivables Financing Agreement.

        WHEREAS, pursuant to the terms of the Receivables Financing Agreement,
Borrower has granted to Lender a security interest in its personal property
assets to secure its Obligations.

        NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

        1.  Granting Clause. Section 6 of the Receivables Financing Agreement is
            hereby amended and restated to read in its entirety as follows:

            "6. Grant of Security Interest; Other Agreements.

            61  To secure the prompt payment and performance of all of
            Borrower's Obligations to Lender, Borrower hereby grants to Lender a
            continuing lien upon and security interest in, and right of set off
            with respect to, all of Borrower's right, title and interest in, to
            and under all personal property and other assets, whether now owned
            by or owing to, or hereafter acquired by or arising in favor of,
            Borrower, and regardless of where located, including the following
            (collectively, the "Collateral"):

                (A)  All accounts, accounts receivable, chattel paper, contract
                rights, documents, instruments, letters of credit,
                letter-of-credit rights, supporting obligations, banker's
                acceptances, drafts, securities and general intangibles,
                including all software, payment intangibles, claims, causes of
                action, rights to receive tax refunds, rights in and claims
                under insurance policies (including rights to unearned
                premiums); customer lists, copyrights, patents, trademarks,
                license agreements, goodwill associated with trademarks and
                trademark licenses, and other intellectual property of every
                kind and other rights to payment;

                (B)  All inventory;

                (C)  All deposit accounts and deposits therein;

                (D)  All monies, remittances, and other amounts due under this
                Agreement and any other agreement between Lender and Borrower;

                (E)  All equipment, machinery, motor vehicles, furniture,
                fixtures, tools and supplies;

                (F)  All investment property;

                (G)  All farm products, crops, timber, minerals and the like
                (including oil and gas);

                (H)  the following commercial tort claims _____________________
                _______________________________________________________________

                (I)  All books and records relating to the foregoing, including
                all computer programs, printed output and computer readable
                data; and

                (J)  To the extent not otherwise included, all proceeds, tort
                claims, insurance claims and other rights to payments not
                otherwise included in the foregoing and products of the
                foregoing and all accessions to, substitutions and replacements
                for, and rents and profits of, each of the foregoing.

            62  Borrower hereby irrevocably authorizes the Lender at any time
            and from time to time to file in any filing office in any Uniform
            Commercial Code jurisdiction any initial financing statements and
            amendments thereto that (a) indicate the Collateral (i) as all
            assets of Borrower or words of similar effect, regardless of whether
            any particular asset comprised in the Collateral falls within the
            scope of Article 9 of the Code or such jurisdiction, or (ii) as
            being of an equal or lesser scope or with greater detail, and (b)
            contain any other information required by part 5 of Article 9 of the
            Code for the sufficiency or filing office acceptance of any
            financing statement or amendment, including (i) whether Borrower is
            an organization, the type of organization and any organization
            identification number issued to Borrower, and (ii) in the case of a
            financing statement filed as a fixture filing or indicating
            Collateral as as-extracted collateral or timber to be cut, a
            sufficient description of real property to which the Collateral
            relates. Borrower agrees to furnish any such information Lender
            promptly upon request. Borrower also ratifies its authorization for
            Lender to have filed in any Uniform Commercial Code jurisdiction any
            initial financing statements or amendments thereto if filed prior to
            the date hereof.

            63  Borrower shall sign and deliver to Lender UCC financing
            statements, in form acceptable to Lender as to those jurisdictions
            that are not Uniform Commercial Code jurisdictions.

            64  Borrower shall deliver to Lender the originals of all
            instruments, certificated securities, chattel paper and documents
            evidencing or related to Financed Accounts and other Collateral.

            65  Borrower shall obtain signed acknowledgments of Lender's
            security interests from bailees having possession of Borrower's
            goods that they hold for the benefit of Lender.

            66  At the request of Lender, Borrower shall obtain authenticated
            control letters from each issuer of uncertificated securities,
            securities intermediary, or commodities intermediary issuing or
            holding any financial assets or commodities to or for Borrower.

            67  Borrower shall maintain all of its deposit accounts with Lender.
<PAGE>
   68   If Borrower is or becomes the beneficiary of a letter of credit,
   Borrower shall promptly, and in any event within two (2) business days after
   becoming a beneficiary, notify Lender thereof and enter into a tri-party
   agreement with Lender and the issuer and/or confirmation bank with respect to
   letter-of-credit rights assigning such letter-of-credit rights to Lender.

   69   Borrower shall take all steps necessary to grant the Lender control of
   all electronic chattel paper in accordance with the Code and all
   "transferable records" as defined in each of the Uniform Electronic
   Transactions Act and the Electronic Signatures in Global and National
   Commerce Act.

   610  Borrower shall promptly, and in any event within two (2) Business Days
   after the same is acquired by it, notify Lender of any commercial tort claim
   (as defined in the Code) acquired by it and unless otherwise consented by
   Lender, Borrower shall enter into a supplement to this Receivables Agreement,
   granting to Lender a security interest in such commercial tort claim.

2.   Section 5(L) of the Receivables Financing Agreement is hereby amended and
     restated to read in its entirety as follows:

     (L)  Borrower's name as it appears in official filings in the state of its
     incorporation or other organization, the type of entity of Borrower
     (including corporation, partnership, limited partnership or limited
     liability company), organizational identification number issued by
     Borrower's state of incorporation or organization or a statement that no
     such number has been issued, Borrower's state of organization or
     incorporation, the location of Borrower's chief executive office, principal
     place of business, offices, all warehouses and premises where Collateral is
     stored or located, and the locations of its books and records concerning
     the Collateral are set forth below Borrower's signature. Borrower has only
     one state of incorporation or organization."

3.   Additional Covenants. The following clauses (N), and (O) are added to
     Section 5 of the Receivables Financing Agreement:

     (N)  Borrower shall not reincorporate or reorganize itself under the laws
     of any jurisdiction other than the jurisdiction in which it is incorporated
     or organized as of the date hereof without the prior written consent of
     Lender; and

     (O)  Borrower acknowledges that it is not authorized to file any financing
     statement or amendment or termination statement with respect to any
     financing statement without the prior written consent of Lender and agrees
     that it will not do so without the prior written consent of Lender, subject
     to Borrower's rights under Section 9509(d)(2) of the Code.

4.   The following are hereby added as new definitions to Section 13 of the
Receivables Financing Agreement:

"Code" means the California Commercial Code as in effect on July 1, 2001, as
the same may be amended from time to time.

"Uniform Commercial Code jurisdiction" means any jurisdiction that had adopted
all or substantially all of Article 9 as contained in the 2000 Official Text of
the Uniform Commercial Code, as recommended by the National Conference of
Commissioners on Uniform State Laws and the American Law Institute, together
with any subsequent amendments or modifications to the Official Text.

5.   The definition of "Account" in Section 13.1 of the Receivables Financing
Agreement is hereby amended and restated to read as follows:

"Account" shall mean all accounts, accounts receivable, chattel paper, contract
rights, documents, general intangibles, instruments, letters of credit,
letter-of-credit rights, supporting obligations, banker's acceptances, and other
rights to payment, and proceeds thereof.

6.   Effect on Receivables Financing Agreement. All references in the
Receivables Financing Agreement to the Receivables Financing Agreement shall be
deemed to refer to the Receivables Financing Agreement as amended hereby.

7.   Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
CALIFORNIA (WITHOUT GIVING EFFECT TO ITS CONFLICTS OF LAW RULES).

8.   Counterparts. This Amendment may be executed in any number of counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be
executed and delivered by its duly authorized officer as of the date first set
forth above.

"Borrower:       GADZOOX Networks, Inc.      "Lender"
---------------------------------------
                                             PACIFIC BUSINESS FUNDING,
                                             a division of Cupertino
                                             National Bank
By: /s/ DAVID EICHLER
    -----------------------------------
Name: David Eichler
     ----------------------------------
Title: VP Finance/CFO                        By: /s/ Kevin O'Hare
      ---------------------------------         --------------------------------
                                             Name:
                                                  ------------------------------
State of Formation: Delaware                 Title: Executive Vice President
                   --------------------            -----------------------------

Organizational Identification Number: 77-0308899
                                     -----------
<PAGE>
                            NEGATIVE PLEDGE AGREEMENT

     This Negative Pledge Agreement is made as of September 27, 2001, by and
between Gadzoox Networks, Inc. ("Borrower") and Pacific Business Funding, a
division of Cupertino National Bank ("Bank").

     In connection with the Receivables Financing Documents being concurrently
executed between Borrower and Bank, Borrower and Bank, Borrower agrees as
follows:

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

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

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

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

          d. All patents, patent applications and like protections, including,
without limitation, improvements, divisions, continuations, renewals, reissues,
extensions and continuations-in-part of the same, including, without limitation,
the patents and patent applications (collectively, the "Patents");

          e. Any trademark and servicemark rights, whether registered or not,
applications to register and registrations of the same and like protections, and
the entire goodwill of the business of Borrower connected with and symbolized by
such trademarks (collectively, the "Trademarks");

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

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

          h. All amendments, extensions, renewals and extensions of any of the
Copyrights, Patents or Trademarks; and

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

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

     3.   Capitalized items used herein without definition shall have the same
meanings as set forth in the Loan and Security Agreement of even date herewith.

-----------------------
                                         PACIFIC BUSINESS FUNDING, A DIVISION OF
                                         CUPERTINO NATIONAL BANK

By: /s/ MICHAEL PARIDES                  By: /s/ Kevin O'Hare
    ----------------------------------       -----------------------------------
Title: President & CEO                   Title: Executive Vice-President
       -------------------------------          --------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]