Document:

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                                                                    EXHIBIT 10.2

                           REPEATER TECHNOLOGIES, INC.
                            1990 INCENTIVE STOCK PLAN

                              Adopted May 18, 1990
             Amended by the Board of Directors on September 4, 1990
                  Approved by the Shareholders on May 10, 1991
              Amended by the Board of Directors on October 23, 1992
                Approved by the Shareholders on December 31, 1992
             Amended by the Board of Directors on February 17, 1993
              Amended by the Board of Directors on October 14, 1994
                Amended by the Board of Directors on May 25, 1995
             Amended by the Board of Directors on January 29, 1997.
                Approved by the Shareholders on January 29, 1997
              Amended by the Board of Directors on October 2, 1997
                Approved by the Shareholders on November 20, 1997
               Amended by the Board of Directors on March 13, 1998
                 Approved by the Shareholders on March 13, 1998
             Amended by the Board of Directors on September 16, 1999
                  Approved by the Shareholders on May 11, 2000

        1.     PURPOSE.

               (a) The purpose of the 1990 Incentive Stock Plan (the "Plan") is
to provide a means by which selected key employees and directors (if declared
eligible under paragraph 4) of and consultants to Repeater Technologies, Inc., a
California corporation (the "Company"), and its Affiliates, as defined in
subparagraph 1(b), may be given an opportunity to benefit from increases in
value of the stock of the Company. It is intended that this purpose will be
effected through the granting of (a) incentive stock options, (b) nonstatutory
stock options, (c) stock bonuses, and (d) purchases of restricted stock.

               (b) The word "Affiliate" as used in the Plan means any parent
corporation or subsidiary corporation of the Company, as those terms are defined
in Sections 425(e) and (f), respectively, of the Internal Revenue Code of 1986,
as amended from time to time (the "Code").

               (c) The Company, by means of the Plan, seeks to retain the
services of persons now employed by or serving as consultants or directors to
the Company, to secure and retain the

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services of persons capable of filling such positions, and to provide incentives
for such persons to exert maximum efforts for the success of the Company.

               (d) The Company intends that rights granted under the Plan
("Stock Awards") shall, in the discretion of the Board of Directors of the
Company (the "Board") or any committee to which responsibility for
administration of the Plan has been delegated pursuant to subparagraph 2(c), be
either (i) stock options granted pursuant to paragraph 5 hereof, including
incentive stock options as that term is used in Section 422A of the Code
("Incentive Stock Options"), or options which do not qualify as incentive stock
options ("Supplemental Stock Options") or (ii) stock bonuses or purchases of
restricted stock granted pursuant to paragraph 6 hereof.

        2.     ADMINISTRATION.

               (a) The Plan shall be administered by the Board unless and until
the Board delegates administration to a committee, as provided in subparagraph
2(c). Whether or not the Board has delegated administration, the Board shall
have the final power to determine all questions of policy and expediency that
may arise in the administration of the Plan.

               (b) The Board shall have the power, subject to, and within the
limitations of, the express provisions of the Plan:

                      (1) To determine from time to time which of the persons
eligible under the Plan shall be granted Stock Awards; when and how Stock Awards
shall be granted; whether a Stock Award will be an Incentive Stock Option, a
Supplemental Stock Option, a stock bonus, a purchase of restricted stock, or a
combination of the foregoing; the provisions of each Stock Award granted (which
need not be identical), including the time or times when a person shall be
permitted to purchase or receive stock pursuant to a Stock Award; and the number
of shares with respect to which Stock Awards shall be granted to each such
person.

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                      (2) To construe and interpret the Plan and Stock Awards
granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award, in a manner
and to the extent it shall deem necessary or expedient to make the Plan fully
effective.

                      (3) To amend the Plan as provided in paragraph 11.

                      (4) Generally, to exercise such powers and to perform such
acts as the Board deems necessary or expedient to promote the best interests of
the Company.

               (c) The Board may delegate administration of the Plan to a
committee composed of not fewer than three (3) members (the "Committee"). If the
Committee grants Stock Awards to persons subject to Section 16(b) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), all of the
members of the Committee shall be disinterested persons, if required and as
defined by the provisions of subparagraph 2(d). If administration is delegated
to a Committee, the Committee shall have, in connection with the administration
of the Plan, the powers theretofore possessed by the Board, subject, however, to
such resolutions, not inconsistent with the provisions of the Plan, as may be
adopted from time to time by the Board. The Board may abolish the Committee at
any time and revest in the Board the administration of the Plan.

               (d) The term "disinterested person," as used in this Plan, shall
mean an administrator of the Plan, whether a member of the Board or of any
Committee to which responsibility for administration of the Plan has been
delegated pursuant to subparagraph 2(c): (i) who is not at the time he or she
exercises discretion in administering the Plan eligible and has not at any time
within one (1) year prior thereto been eligible for selection as a person to
whom stock may be allocated or to whom stock options may be granted pursuant to
the Plan or any other plan of

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the Company or any of its affiliates (as defined in the Exchange Act) entitling
the participants therein to acquire stock or stock options of the Company or any
of its affiliates (as defined in the Exchange Act); or (ii) who is otherwise
considered to be a "disinterested person" in accordance with the rules,
regulations or interpretations of the Securities and Exchange Commission. Any
such person shall otherwise comply with the requirements of Rule 16b-3
promulgated under the Exchange Act.

               (e) Any requirement that an administrator of the Plan be a
"disinterested person" shall not apply if the Board or the Committee expressly
declares that such requirement shall not apply.

        3. SHARES SUBJECT TO THE PLAN.

               (a) Subject to the provisions of paragraph 10 relating to
adjustments upon changes in stock, the stock that may be issued pursuant to
Stock Awards granted under the Plan shall not exceed in the aggregate two
million seven hundred sixteen thousand nine hundred nine (2,716,909) shares of
the Company's common stock (as set by board action on September 16, 1999 and
including all adjustments through such date); provided, however, that such
aggregate number of shares shall be reduced to reflect the number of shares of
the Company's common stock which has been sold under, or may be sold pursuant to
outstanding options granted under this Plan. If any option or right granted
under the Plan shall for any reason expire or otherwise terminate without having
been exercised in full, the stock not issued under such option or right shall
again become available for the Plan.

               (b) The stock subject to the Plan may be unissued shares or
reacquired shares, bought on the market or otherwise.

        4. ELIGIBILITY.

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               (a) Incentive Stock Options may be granted only to employees
(including officers) of the Company or its Affiliates. A director of the Company
shall not be eligible to receive Incentive Stock Options unless such director is
also an employee (including an officer) of the Company or any Affiliate. Stock
Awards other than Incentive Stock Options may be granted only to directors,
officers or employees of or consultants to the Company or its Affiliates.

               (b) A director shall in no event be eligible for the benefits of
the Plan unless and until such director is expressly declared eligible to
participate in the Plan by action of the Board or the Committee, and only if, at
any time discretion is exercised by the Board in the selection of a director as
a person to whom Stock Awards may be granted, or in the determination of the
number of shares which may be covered by Stock Awards granted to a director: (i)
a majority of the Board and a majority of the directors acting in such matter
are disinterested persons, as defined in subparagraph 2(d); (ii) the Committee
consists solely of "disinterested persons" as defined in subparagraph 2(d); or
(iii) the Plan otherwise complies with the requirements of Rule 16b-3
promulgated under the Exchange Act, as from time to time in effect. The Board
shall otherwise comply with the requirements of Rule 16b-3 promulgated under the
Exchange Act, as from time to time in effect. Notwithstanding the foregoing, the
restrictions set forth in this subparagraph 4(b) shall not apply if the Board or
Committee expressly declares that such restrictions shall not apply.

               (c) No person shall be eligible for the grant of an option under
the Plan if, at the time of grant, such person owns (or is deemed to own
pursuant to Section 425(d) of the Code) stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or of any of its Affiliates unless the exercise price of such option is at least
one hundred ten percent (110%) of the fair market value of such stock at the
date of grant and the term of the option does not exceed five (5) years from the
date of grant.

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        5. TERMS OF STOCK OPTIONS.

               Each stock option shall be in such form and shall contain such
terms and conditions as the Board or the Committee shall deem appropriate. All
options shall be separately designated Incentive Stock Options or Supplemental
Stock Options at the time of grant, and in such form as issued pursuant to this
paragraph 5, and a separate certificate or certificates shall be issued for
shares purchased on exercise of each type of option. An option designated as a
Supplemental Stock Option shall not be treated as an incentive stock option. The
provisions of separate options need not be identical, but each option shall
include (through incorporation of provisions hereof by reference in the option
or otherwise) the substance of each of the following provisions:

               (a) The term of any option shall not be greater than ten (10)
years from the date it was granted.

               (b) The exercise price of each Incentive Stock Option shall be
not less than one hundred percent (100%) of the fair market value of the stock
subject to the option on the date the option is granted. The exercise price of
each Supplemental Stock Option shall be not less than eighty-five percent (85%)
of the fair market value of the stock subject to the option on the date the
option is granted.

               (c) The purchase price of stock acquired pursuant to an option
shall be paid, to the extent permitted by applicable statutes and regulations,
either (i) in cash at the time the option is exercised, or (ii) at the
discretion of the Board or the Committee, either at the time of the grant or
exercise of the option, (A) by delivery to the Company of other common stock of
the Company, (B) according to a deferred payment or other arrangement (which may
include, without limiting the generality of the foregoing, the use of other
common stock of the Company) with the person to

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whom the option is granted or to whom the option is transferred pursuant to
subparagraph 5(d), or (C) in any other form of legal consideration that may be
acceptable to the Board or the Committee.

               (d) Unless otherwise expressly stated in the option, an option
shall not be transferable except by will or by the laws of descent and
distribution, and shall be exercisable during the lifetime of the person to whom
the option is granted only by such person.

               (e) The total number of shares of stock subject to an option may,
but need not, be allotted in periodic installments (which may, but need not, be
equal). From time to time during each of such installment periods, the option
may become exercisable ("vest") with respect to some or all of the shares
allotted to that period, and may be exercised with respect to some or all of the
shares allotted to such period and/or any prior period as to which the option
was not fully exercised. During the remainder of the term of the option (if its
term extends beyond the end of the installment periods), the option may be
exercised from time to time with respect to any shares then remaining subject to
the option. The provisions of this subparagraph 5(e) are subject to any option
provisions governing the minimum number of shares as to which an option may be
exercised.

               (f) An option shall terminate three (3) months after termination
of the optionee's employment or relationship as a director of or consultant to
the Company or an Affiliate, unless (i) such termination is due to such person's
permanent and total disability, within the meaning of Section 422A(c)(7) of the
Code, in which case the option may, but need not, provide that it may be
exercised at any time within one (1) year following such termination of
employment or relationship as a director or consultant; or (ii) the optionee
dies while in the employ of or while serving as a director of or consultant to
the Company or an Affiliate, or within not more than three (3) months after
termination of such relationship, in which case the option may, but need not,
provide that it may be exercised at any time within eighteen (18) months
following the death of the optionee by the

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person or persons to whom the optionee's rights under such option pass by will
or by the laws of descent and distribution; or (iii) the option by its terms
specifies either (a) that it shall terminate sooner than three (3) months after
termination of the optionee's employment or relationship as a director or
consultant, or (b) that it may be exercised more than three (3) months after
termination of the relationship with the Company or an Affiliate. This
subparagraph 5(f) shall not be construed to extend the term of any option or to
permit anyone to exercise the option after expiration of its term, nor shall it
be construed to increase the number of shares as to which any option is
exercisable from the amount exercisable on the date of termination of the
optionee's employment or relationship as a consultant or director.

               (g) The option may, but need not, include a provision whereby the
optionee may elect at any time during the term of his or her employment or
relationship as a director of or consultant to the Company or any Affiliate to
exercise the option as to any part or all of the shares subject to the option
prior to the stated vesting date of the option or of any installment or
installments specified in the option. Any shares so purchased from any unvested
installment or option may be subject to a repurchase right in favor of the
Company or to any other restriction the Board or the Committee determines to be
appropriate.

        6.     TERMS OF STOCK BONUSES AND PURCHASES OF RESTRICTED STOCK.

               Each stock bonus or restricted stock purchase agreement shall be
in such form and shall contain such terms and conditions as the Board or the
Committee shall deem appropriate. The terms and conditions of stock bonus or
restricted stock purchase agreements may change from time to time, and the terms
and conditions of separate agreements need not be identical, but each stock
bonus or restricted stock purchase agreement shall include (through
incorporation of provisions

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hereof by reference in the agreement or otherwise) the substance of each of the
following provisions as appropriate:

               (a) The purchase price under each stock purchase agreement shall
be not less than eighty-five percent (85%) of the fair market value of the stock
on the date the stock purchase agreement is authorized by the Board or the
Committee. Notwithstanding the foregoing, the Board or the Committee may
determine that eligible participants in the Plan may be awarded stock pursuant
to a stock bonus agreement in consideration for past services actually rendered
to the Company or for its benefit.

               (b) No rights under a stock bonus or restricted stock purchase
agreement shall be assignable by any participant under the Plan, either
voluntarily or by operation of law, except where such assignment is required by
law or expressly authorized by the terms of the applicable stock bonus or
restricted stock purchase agreement.

               (c) The purchase price of stock acquired pursuant to a stock
purchase agreement shall be paid either (i) in cash at the time of purchase, or
(ii) at the discretion of the Board or a Committee to which administration of
the Plan has been delegated, (A) according to a deferred payment or other
arrangement (which may include, without limiting the generality of the
foregoing, the use of other common stock of the Company) with the person to whom
the stock is sold, or (B) in any other form of legal consideration that may be
acceptable to the Board or the Committee in its discretion. Notwithstanding the
foregoing, the Board or the Committee to which administration of the Plan has
been delegated may award stock pursuant to a stock bonus agreement in
consideration for past services actually rendered to the Company or for its
benefit.

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               (d) Shares of stock sold or awarded under the Plan may, but need
not, be subject to a repurchase option in favor of the Company in accordance
with a vesting schedule to be determined by the Board or the Committee.

               (e) In the event a person ceases to be an employee of or ceases
to serve as a director of or consultant to the Company or an Affiliate, the
Company may repurchase or otherwise reacquire any or all of the shares of stock
held by that person which have not vested as of the date of termination under
the terms of the stock bonus or restricted stock purchase agreement between the
Company and such person.

        7.     COVENANTS OF THE COMPANY.

               (a) During the terms of any Stock Awards granted under the Plan,
the Company shall keep available at all times the number of shares of stock
required to satisfy such Stock Awards.

               (b) The Company shall seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such authority as may be
required to issue and sell shares of stock upon grant or exercise of Stock
Awards under the Plan; provided, however, that this undertaking shall not
require the Company to register under the Securities Act of 1933, as amended
(the "Securities Act"), either the Plan, any Stock Award granted under the Plan
or any stock issued or issuable pursuant to any such Stock Awards. If, after
reasonable efforts, the Company is unable to obtain from any such regulatory
commission or agency the authority which counsel for the Company deems necessary
for the lawful issuance and sale of stock under the Plan, the Company shall be
relieved from any liability for failure to issue and sell stock upon exercise of
such Stock Awards unless and until such authority is obtained.

        8.     USE OF PROCEEDS FROM STOCK.

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               Proceeds from the sale of stock pursuant to Stock Awards granted
under the Plan shall constitute general funds of the Company.

        9.     MISCELLANEOUS.

               (a) The Board or the Committee shall have the power to accelerate
the time during which a Stock Award may be exercised or the time during which an
option or stock acquired pursuant to a Stock Award will vest, notwithstanding
the provisions in the Stock Award stating the time during which it may be
exercised or the time during which stock acquired pursuant thereto will vest.

               (b) Neither a recipient of a Stock Award nor any person to whom a
Stock Award is transferred under subparagraphs 5(d) and 6(b) shall be deemed to
be the holder of, or to have any of the rights of a holder with respect to, any
shares subject to such Stock Award unless and until such person has satisfied
all requirements for exercise of the Stock Award pursuant to its terms and is
thereby entitled to receive shares of stock.

               (c) Throughout the term of any Stock Award granted pursuant to
the Plan, the Company shall make available to the holder of such Stock Award,
not later than one hundred twenty (120) days after the close of each of the
Company's fiscal years during the option term, upon request, such financial and
other information regarding the Company as comprises the annual report to the
shareholders of the Company provided for in the bylaws of the Company.

               (d) Nothing in the Plan or any instrument executed or Stock Award
granted pursuant thereto shall confer upon any recipient any right to continue
in the employ of the Company or any Affiliate (or to continue acting as a
consultant or director) or shall affect the right of the Company or any
Affiliate to terminate the employment or consulting relationship or directorship
of any eligible employee or recipient with or without cause. In the event that a
Stock Award recipient

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is permitted or otherwise entitled to take a leave of absence, the Company shall
have the unilateral right to (i) determine whether such leave of absence will be
treated as a termination of employment for purposes of his or her Stock Award,
and (ii) suspend or otherwise delay the time or times at which the shares
subject to the Stock Award would otherwise vest.

               (e) To the extent provided by the terms of any Stock Award, the
recipient may satisfy any federal, state or local tax withholding obligation
relating to the exercise or receipt of such Stock Award by any of the following
means or by a combination of such means: (1) tendering a cash payment; (2)
authorizing the Company to withhold from the shares of the common stock
otherwise issuable to the participant as a result of the exercise or receipt of
the Stock Award cash or a number of shares having a fair market value less than
or equal to the amount of the withholding tax obligation; or (3) delivering to
the Company owned and unencumbered shares of the common stock having a fair
market value less than or equal to the amount of the withholding tax obligation.

               (f) In connection with each Stock Award made pursuant to the
Plan, the Company may require as a condition precedent to its obligation to
issue or transfer shares to an eligible participant, or to evidence the removal
of any restrictions on transfer or lapse of any repurchase right, that such
participant make arrangements satisfactory to the Company to insure that the
amount of any federal or other withholding tax required to be withheld with
respect to such sale or transfer, or such removal or lapse, is made available to
the Company for timely payment of such tax.

               (g) The Company may as a condition of transferring any stock
pursuant to the Plan, require any person who is to acquire such stock, (1) to
give written assurances satisfactory to the Company as to the optionee's
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is

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knowledgeable and experienced in financial and business matters, and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of acquiring the stock; and (2) to give
written assurances satisfactory to the Company stating that such person is
acquiring the stock for such person's own account and not with any present
intention of selling or otherwise distributing the stock. These requirements,
and any assurances given pursuant to such requirements, shall be inoperative if
(i) the issuance of the shares has been registered under a then currently
effective registration statement under the Securities Act or (ii), as to any
particular requirement, a determination is made by counsel for the Company that
such requirement need not be met in the circumstances under the then applicable
securities laws.

        10.    ADJUSTMENTS UPON CHANGES IN STOCK.

               (a) If any change is made in the stock subject to the Plan, or
subject to any Stock Award granted under the Plan (through merger,
consolidation, reorganization, recapitalization, stock dividend, dividend in
property other than cash, stock split, liquidating dividend, combination of
shares, exchange of shares, change in corporate structure or otherwise), the
Plan and outstanding Stock Awards will be appropriately adjusted in the
class(es) and maximum number of shares subject to the Plan and the class(es) and
number of shares and price per share of stock subject to outstanding Stock
Awards.

               (b) With respect to options granted on or after January 13, 1993
in the event of: (1) a merger or consolidation in which the Company is not the
surviving corporation or (2) a reverse merger in which the Company is the
surviving corporation but the shares of the Company's common stock outstanding
immediately preceding the merger are converted by virtue of the merger into
other property, whether in the form of securities, cash or otherwise then to the
extent permitted by applicable law: (i) any surviving corporation shall assume
any Stock Awards outstanding under

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the Plan or shall substitute similar Stock Awards for those outstanding under
the Plan, or (ii) such Stock Awards shall continue in full force and effect. In
the event any surviving corporation refuses to assume or continue such Stock
Awards, or to substitute similar options for those outstanding under the Plan,
then such Stock Awards shall be terminated if not exercised prior to such event.
In the event of a dissolution or liquidation of the Company, any Stock Awards
outstanding under the Plan shall terminate if not exercised prior to such event.

        11.    AMENDMENT OF THE PLAN.

               (a) The Board at any time, and from time to time, may amend the
Plan. However, except as provided in paragraph 10 relating to adjustments upon
changes in stock, no amendment shall be effective unless approved by the
shareholders of the Company within twelve (12) months before or after the
adoption of the amendment, where the amendment will increase the number of
shares reserved for issuance under the Plan.

               (b) With a view to making available the benefits provided by
Section 422A of the Code and/or Rule 16b-3 promulgated under the Exchange Act,
if deemed desirable by the Board, the Board in its discretion shall determine at
the time of each amendment of the Plan whether or not to submit such amendment
to the shareholders of the Company for approval.

               (c) It is expressly contemplated that the Board may amend the
Plan in any respect the Board deems necessary or advisable to provide eligible
employees with the maximum benefits provided or to be provided under the
provisions of the Code and the regulations promulgated thereunder relating to
employee incentive stock options and/or to bring the Plan and/or incentive stock
options granted under it into compliance therewith.

               (d) Rights and obligations under any Stock Award granted before
amendment of the Plan shall not be altered or impaired by any amendment of the
Plan unless (i) the Company

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requests the consent of the person to whom the Stock Award was granted and (ii)
such person consents in writing.

        12.    TERMINATION OR SUSPENSION OF THE PLAN.

               (a) The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate ten (10) years from the date
the Plan is adopted by the Board or approved by the shareholders of the Company,
whichever is earlier. No Stock Awards may be granted under the Plan while the
Plan is suspended or after it is terminated.

               (b) Rights and obligations under any Stock Award granted while
the Plan is in effect shall not be altered or impaired by suspension or
termination of the Plan, except with the consent of the person to whom the Stock
Award was granted.

        13.    EFFECTIVE DATE OF PLAN.

               The Plan shall become effective as determined by the Board, but
no Stock Award granted under the Plan shall be exercised and no stock shall
otherwise be issued under the Plan unless and until the Plan has been approved
by the shareholders of the Company, and, if required, an appropriate permit has
been issued by the Commissioner of Corporations of the State of California.

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                                    IT IS UNLAWFUL TO CONSUMMATE A SALE OR
                                    TRANSFER OF THIS SECURITY, OR ANY INTEREST
                                    THEREIN, OR TO RECEIVE ANY CONSIDERATION
                                    THEREFOR, WITHOUT THE PRIOR WRITTEN CONSENT
                                    OF THE COMMISSIONER OF CORPORATIONS OF THE
                                    STATE OF CALIFORNIA, EXCEPT AS PERMITTED IN
                                    THE COMMISSIONER'S RULES.

                                    FORM OF
                             INCENTIVE STOCK OPTION

___________, Optionee:

         REPEATER TECHNOLOGIES, INC. (the "Company"), pursuant to its 1990
Incentive Stock Plan (the "Plan"), has this day granted to you, the optionee
named above, an option to purchase shares of the common stock of the Company
("Common Stock"). This option is intended to qualify as an "incentive stock
option" within the meaning of Section 422 of the Internal Revenue Code of
1986, as amended (the "Code").

         The grant hereunder is in connection with and in furtherance of the
Company's compensatory benefit plan for participation of the Company's employees
(including officers), directors or consultants and is intended to comply with
the provisions of Rule 701 promulgated by the Securities and Exchange
Commission under the Securities Act of 1933, as amended (the "Act").

         The details of your option are as follows:

         1. The total number of shares of Common Stock subject to this option
are ____________ (_____). Subject to the limitations contained herein, this
option shall be exercisable with respect to each installment shown below on or
after the date of vesting applicable to such installment, as follows (PROVIDED
THAT THE OPTION SHALL VEST AT LEAST 20% PER YEAR):

NUMBER OF SHARES (INSTALLMENT)           DATE OF EARLIEST EXERCISE (VESTING)

          XXXX

         2. (a) The exercise price of this option is _________ ($_____) per
share, being not less than the fair market value of the Common Stock on the date
of grant of this option.

            (b) Payment of the exercise price per share is due in full upon
exercise of all

                                       1.
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or any part of each installment which has accrued to you. You may elect, to the
extent permitted by applicable statutes and regulations, to make payment of the
exercise price under one of the following alternatives:

                           (i) Payment of the exercise price per share in cash
(including check) at the time of exercise; or

                           (ii) Payment pursuant to a program developed under
Regulation T as promulgated by the Federal Reserve Board which results in the
receipt of cash (or check) by the Company prior to the issuance of Common Stock.

         3.       (a) Subject to the provisions of this option you may elect at
any time during your employment with the Company or an affiliate thereof, to
exercise the option as to any part or all of the shares subject to this option
at any time during the term hereof, including without limitation, a time prior
to the date of earliest exercise ("vesting") stated in paragraph 1 hereof;
provided, however, that:

                           (i) a partial exercise of this option shall be deemed
to cover first vested shares and then the earliest vesting installment of
unvested shares;

                           (ii) any shares so purchased from installments which
have not vested as of the date of exercise shall be subject to the purchase
option in favor of the Company as described in the Early Exercise Stock Purchase
Agreement attached hereto;

                           (iii) you shall enter into an Early Exercise Stock
Purchase Agreement in the form attached hereto with a vesting schedule that will
result in the same vesting as if no early exercise had occurred; and

                           (iv) this option shall not be exercisable under this
paragraph 3 to the extent such exercise would cause the aggregate fair market
value of any shares subject to incentive stock options granted you by the
Company or any affiliate (valued as of their grant date) which would become
exercisable for the first time during any calendar year to exceed $100,000.

                  (b) The election provided in this paragraph 3 to purchase
shares upon the exercise of this option prior to the vesting dates shall cease
upon termination of your employment with the Company or an affiliate thereof and
may not be exercised after the date thereof.

         4. This option may not be exercised for any number of shares which
would require the issuance of anything other than whole shares.

         5. Notwithstanding anything to the contrary contained herein, this
option may not be exercised unless the shares issuable upon exercise of this
option are then registered under the Act or, if such shares are not then so
registered, the Company has determined that such exercise and

                                       2.
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issuance would be exempt from the registration requirements of the Act.

         6. The term of this option commences on the date hereof and, unless
sooner terminated as set forth below or in the Plan, terminates on _________
(which date shall be no more than ten (10) years from date this option is
granted). In no event may this option be exercised on or after the date on which
it terminates. This option shall terminate prior to the expiration of its term
as follows: three (3) months after the termination of your employment with the
Company or an affiliate of the Company (as defined in the Plan) for any reason
or for no reason unless

                  (a) such termination of employment is due to your disability,
in which event the option shall terminate on the earlier of the termination
date set forth above or twelve (12) months following such termination of
employment; or

                  (b) such termination of employment is due to your death, in
which event the option shall terminate on the earlier of the termination date
set forth above or eighteen (18) months after your death; or

                  (c) during any part of such three (3) month period the option
is not exercisable solely because of the condition set forth in paragraph 5
above, in which event the option shall not terminate until the earlier of the
termination date set forth above or until it shall have been exercisable for an
aggregate period of three (3) months after the termination of employment; or

                  (d) exercise of the option within three (3) months after
termination of your employment with the Company or with an affiliate would
result in liability under section 16(b) of the Securities Exchange Act of 1934,
in which case the option will terminate on the earlier of (i) the termination
date set forth above, (ii) the tenth (10th) day after the last date upon which
exercise would result in such liability or (iii) six (6) months and ten (10)
days after the termination of your employment with the Company or an affiliate.

         However, this option may be exercised following termination of
employment only as to that number of shares as to which it was exercisable on
the date of termination of employment under the provisions of paragraph 1 of
this option.

         7.       (a) This option may be exercised, to the extent specified
above, by delivering a notice of exercise (in a form designated by the Company)
together with the exercise price to the Secretary of the Company, or to such
other person as the Company may designate, during regular business hours,
together with such additional documents as the Company may then require pursuant
to subparagraph 9(g) of the Plan.

                                       3.
<PAGE>

                  (b) By exercising this option you agree that:

                           (i) the Company may require you to enter an
arrangement providing for the payment by you to the Company of any tax
withholding obligation of the Company arising by reason of (1) the exercise of
this option; (2) the lapse of any substantial risk of forfeiture to which the
shares are subject at the time of exercise; or (3) the disposition of shares
acquired upon such exercise;

                           (ii) you will notify the Company in writing within
fifteen (15) days after the date of any disposition of any of the shares of the
Common Stock issued upon exercise of this option that occurs within two (2)
years after the date of this option grant or within one (1) year after such
shares of Common Stock are transferred upon exercise of this option; and

                            (iii) the Company (or a representative of the
underwriters) may, in connection with the first underwritten registration of the
offering of any securities of the Company under the Act, require that you not
sell or otherwise transfer or dispose of any shares of Common Stock or other
securities of the Company during such period (not to exceed one hundred eighty
(180) days) following the effective date (the "Effective Date") of the
registration statement of the Company filed under the Act as may be requested by
the Company or the representative of the underwriters; provided, however, that
such restriction shall apply only if, on the Effective Date, you are an officer,
director, or owner of more than one percent (1%) of the outstanding securities
of the Company. For purposes of this restriction you will be deemed to own
securities which (i) are owned directly or indirectly by you, including
securities held for your benefit by nominees, custodians, brokers or pledgees;
(ii) may be acquired by you within sixty (60) days of the Effective Date; (iii)
are owned directly or indirectly, by or for your brothers or sisters (whether by
whole or half blood) spouse, ancestors and lineal descendants; or (iv) are
owned, directly or indirectly, by or for a corporation, partnership, estate or
trust of which you are a shareholder, partner or beneficiary, but only to the
extent of your proportionate interest therein as a shareholder, partner or
beneficiary thereof. You further agree that the Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restrictions
until the end of such period.

         8. This option is not transferable, except by will or by the laws of
descent and distribution, and is exercisable during your life only by you.

         9. This option is not an employment contract and nothing in this option
shall be deemed to create in any way whatsoever any obligation on your part to
continue in the employ of the Company, or of the Company to continue your
employment with the Company.

         10. Any notices provided for in this option or the Plan shall be given
in writing and shall be deemed effectively given upon receipt or, in the case of
notices delivered by the Company to you, five (5) days after deposit in the
United States mail, postage prepaid, addressed to you at the address specified
below or at such other address as you hereafter designate by written notice to
the Company.

                                       4.

<PAGE>

         11. This option is subject to all the provisions of the Plan, a copy of
which is attached hereto and its provisions are hereby made a part of this
option, including without limitation the provisions of paragraphs 5 and 9 of the
Plan relating to option provisions, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time
be promulgated and adopted pursuant to the Plan. In the event of any conflict
between the provisions of this option and those of the Plan, the provisions of
the Plan shall control.

         Dated the __th day of ________, 19__.

                                        Very truly yours,

                                        REPEATER TECHNOLOGIES, INC.

                                        By
                                          --------------------------------------
                                          Duly authorized on behalf
                                          of the Board of Directors

ATTACHMENTS:

         1990 Incentive Stock Plan
         Regulation 260.141.11
         Notice of Exercise
         Early Exercise Stock Purchase Agreement

                                       5.
<PAGE>

The undersigned:

         (a) Acknowledges receipt of the foregoing option and the attachments
referenced therein and understands that all rights and liabilities with respect
to this option are set forth in the option and the Plan; and

         (b) Acknowledges that as of the date of grant of this option, it sets
forth the entire understanding between the undersigned optionee and the Company
and its affiliates regarding the acquisition of stock in the Company and
supersedes all prior oral and written agreements on that subject with the
exception of (i) the options previously granted and delivered to the undersigned
under stock option plans of the Company, and (ii) the following agreements only:

     NONE
                  -------------------
                  (Initial)

     OTHER
          ---------------------------------

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

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

         (c) Acknowledges receipt of a copy of Section 260.141.11 of Title 10
of the California Code of Regulations.

                                             -----------------------------------
                                             OPTIONEE

                                             Address:
                                                       -------------------------

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

                                       6.
<PAGE>

                                    IT IS UNLAWFUL TO CONSUMMATE A SALE OR
                                    TRANSFER OF THIS SECURITY, OR ANY INTEREST
                                    THEREIN, OR TO RECEIVE ANY CONSIDERATION
                                    THEREFOR, WITHOUT THE PRIOR WRITTEN CONSENT
                                    OF THE COMMISSIONER OF CORPORATIONS OF THE
                                    STATE OF CALIFORNIA, EXCEPT AS PERMITTED IN
                                    THE COMMISSIONER'S RULES.

                                    FORM OF
                            NONSTATUTORY STOCK OPTION

                    , Optionee:
--------------------

         REPEATER TECHNOLOGIES, INC. (the "Company"), pursuant to its 1990
Incentive Stock Plan (the "Plan") has this day granted to you, the optionee
named above, an option to purchase shares of the common stock of the Company
("Common Stock") This option is not intended to qualify as and will not be
treated as an "incentive stock option" within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code").

         The grant hereunder is in connection with and in furtherance of the
Company's compensatory benefit plan for participation of the Company's employees
(including officers), directors or consultants and is intended to comply with
the provisions of Rule 701 promulgated by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (the "Act").

         The details of your option are as follows:

         1. The total number of shares of Common Stock subject to this option is
___________ (________). Subject to the limitations contained herein, this option
shall be exercisable with respect to each installment shown below on or after
the date of vesting applicable to such installment, as follows (PROVIDED THAT
THE OPTION SHALL VEST AT LEAST 20% PER YEAR):

NUMBER OF SHARES (INSTALLMENT)      DATE OF EARLIEST EXERCISE (VESTING)

         2. (a) The exercise price of this option is ________ ($____) per share,
being not less than 85% of the fair market value of the Common Stock on the date
of grant of this option.

                                       1.
<PAGE>
            (b) Payment of the exercise price per share is due in full upon
exercise of all or any part of each installment which has accrued to you. You
may elect, to the extent permitted by applicable statutes and regulations, to
make payment of the exercise price under one of the following alternatives:

                  (i) Payment of the exercise price per share in cash (including
check) at the time of exercise; or

                  (ii) Payment pursuant to a program developed under Regulation
T as promulgated by the Federal Reserve Board which results in the receipt of
cash (or check) by the Company prior to the issuance of Common Stock.

         3. (a) Subject to the provisions of this option you may elect at any
time during your employment with the Company or an affiliate thereof, to
exercise the option as to any part or all of the shares subject to this option
at any time during the term hereof, including without limitation, a time prior
to the date of earliest exercise ("vesting") stated in paragraph 1 hereof;
provided, however, that:

                  (i) a partial exercise of this option shall be deemed to cover
first vested shares and then the earliest vesting installment of unvested
shares;

                  (ii) any shares so purchased from installments which have not
vested as of the date of exercise shall be subject to the purchase option in
favor of the Company as described in the Early Exercise Stock Purchase Agreement
attached hereto; and

                  (iii) you shall enter into an Early Exercise Stock Purchase
Agreement in the form attached hereto with a vesting schedule that will result
in the same vesting as if no early exercise had occurred.

            (b) The election provided in this paragraph 3 to purchase shares
upon the exercise of this option prior to the vesting dates shall cease upon
termination of your employment with the Company or an affiliate thereof and may
not be exercised after the date thereof.

         4. This option may not be exercised for any number of shares which
would require the issuance of anything other than whole shares.

         5. Notwithstanding anything to the contrary contained herein, this
option may not be exercised unless the shares issuable upon exercise of this
option are then registered under the Act or, if such Shares are not then so
registered, the Company has determined that such exercise and issuance would be
exempt from the registration requirements of the Act.

                                       2.
<PAGE>

         6. The term of this option commences on the date hereof and, unless
sooner terminated as set forth below or in the Plan, terminates on
_______________ (which date shall be no more than ten (10) years from the date
this option is granted). In no event may this option be exercised on or after
the date on which it terminates. This option shall terminate prior to the
expiration of its term as follows: three (3) months after the termination of
your employment with the Company or an affiliate of the Company (as defined in
the Plan) for any reason or for no reason unless:

            (a) such termination of employment is due to your disability, in
which event the option shall terminate on the earlier of the termination date
set forth above or twelve (12) months following such termination of employment;
or

            (b) such termination of employment is due to your death, in which
event the option shall terminate on the earlier of the termination date set
forth above or eighteen (18) months after your death; or

            (c) during any part of such three (3) month period the option is not
exercisable solely because of the condition set forth in paragraph 5 above, in
which event the option shall not terminate until the earlier of the termination
date set forth above or until it shall have been exercisable for an aggregate
period of three (3) months after the termination of employment; or

            (d) exercise of the option within three (3) months after termination
of your employment with the Company or with an affiliate would result in
liability under section 16(b) of the Securities Exchange Act of 1934, in which
case the option will terminate on the earlier of (i) the termination date set
forth above, (ii) the tenth (10th) day after the last date upon which exercise
would result in such liability or (iii) six (6) months and ten (10) days after
the termination of your employment with the Company or an affiliate.

         However, this option may be exercised following termination of
employment only as to that number of shares as to which it was exercisable on
the date of termination of employment under the provisions of paragraph 1 of
this option.

         7. (a) This option may be exercised, to the extent specified above, by
delivering a notice of exercise (in a form designated by the Company) together
with the exercise price to the Secretary of the Company, or to such other person
as the Company may designate, during regular business hours, together with such
additional documents as the Company may then require pursuant to subparagraph
9(g) of the Plan.

            (b) By exercising this option you agree that:

                                       3.
<PAGE>

                  (i) the Company may require you to enter an arrangement
providing for the cash payment by you to the Company of any tax withholding
obligation of the Company arising by reason of: (1) the exercise of this option;
(2) the lapse of any substantial risk of forfeiture to which the shares are
subject at the time of exercise; or (3) the disposition of shares acquired upon
such exercise; and

                  (ii) the Company (or a representative of the underwriters)
may, in connection with the first underwritten registration of the offering of
any securities of the Company under the Act, require that you not sell or
otherwise transfer or dispose of any shares of Common Stock or other securities
of the Company during such period (not to exceed one hundred eighty (180) days)
following the effective date (the "Effective Date") of the registration
statement of the Company filed under the Act as may be requested by the Company
or the representative of the underwriters; provided, however, that such
restriction shall apply only if, on the Effective Date, you are an officer,
director, or owner of more than one percent (1%) of the outstanding securities
of the Company. For purposes of this restriction you will be deemed to own
securities which (i) are owned directly or indirectly by you, including
securities held for your benefit by nominees, custodians, brokers or pledgees;
(ii) may be acquired by you within sixty (60) days of the Effective Date; (iii)
are owned directly or indirectly, by or for your brothers or sisters (whether by
whole or half blood) spouse, ancestors and lineal descendants; or (iv) are
owned, directly or indirectly, by or for a corporation, partnership, estate or
trust of which you are a shareholder, partner or beneficiary, but only to the
extent of your proportionate interest therein as a shareholder, partner or
beneficiary thereof. You further agree that the Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restrictions
until the end of such period.

         8. This option is not transferable, except by will or by the laws of
descent and distribution, and is exercisable during your life only by you.

         9. This option is not an employment contract and nothing in this option
shall be deemed to create in any way whatsoever any obligation on your part to
continue in the employ of the Company, or of the Company to continue your
employment with the Company. In the event that this option is granted to you in
connection with the performance of services as a consultant or director,
references to employment, employee and similar terms shall be deemed to include
the performance of services as a consultant or a director, as the case may be,
provided, however, that no rights as an employee shall arise by reason of the
use of such terms.

         10. Any notices provided for in this option or the Plan shall be given
in writing and shall be deemed effectively given upon receipt or, in the case of
notices delivered by the Company to you, five (5) days after deposit in the
United States mail, postage prepaid, addressed to you at the address specified
below or at such other address as you hereafter designate by written notice to
the Company.

                                       4.
<PAGE>

     11. This option is subject to all the provisions of the Plan, a copy of
which is attached hereto and its provisions are hereby made a part of this
option, including without limitation the provisions of paragraphs 5 and 9 of the
Plan relating to option provisions, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time
be promulgated and adopted pursuant to the Plan. In the event of any conflict
between the provisions of this option and those of the Plan, the provisions of
the Plan shall control.

     Dated the __th day of ______, l9__.

                                             Very truly yours,

                                             REPEATER TECHNOLOGIES, INC.

                                             By
                                               --------------------------------
                                               Duly authorized on behalf
                                               of the Board of Directors

ATTACHMENTS:

     1990 Incentive Stock Plan
     Regulation 260.141.11
     Notice of Exercise
     Early Exercise Stock Purchase Agreement

                                       5.
<PAGE>

The undersigned:

         (a) Acknowledges receipt of the foregoing option and the attachments
referenced therein and understands that all rights and liabilities with respect
to this option are set forth in the option and the Plan; and

         (b) Acknowledges that as of the date of grant of this option, it sets
forth the entire understanding between the undersigned optionee and the Company
and its affiliates regarding the acquisition of stock in the Company and
supersedes all prior oral and written agreements on that subject with the
exception of (i) the options previously granted and delivered to the undersigned
under stock option plans of the Company, and (ii) the following agreements only:

         NONE
                --------------------
                (Initial)

         OTHER
              -------------------------------

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

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

         (c) Acknowledges receipt of a copy of Section 260.141.11 of Title 10
of the California Code of Regulations.

                                             ----------------------------------
                                             OPTIONEE

                                             Address:
                                                       ------------------------

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

                                       6.
<PAGE>

                               NOTICE OF EXERCISE

Repeater Technologies, Inc.
1150 Morse Avenue
Sunnyvale, CA 94089                          Date of Exercise:
                                                              -----------------

Ladies and Gentlemen:

         This constitutes notice under my stock option that I elect to purchase
the number of shares for the price set forth below.

<TABLE>
<S>                                        <C>                  <C>
         Type of option (check one):       Incentive [ ]        Nonstatutory [ ]

         Stock option dated:
                                           ------------------

         Number of shares as to
         which option is exercised:
                                           ------------------

         Certificates to be
         issued in name of:
                                           ------------------

         Total exercise price:             $
                                            -----------------

         Cash payment delivered
         herewith:                         $
                                            -----------------
</TABLE>

         By this exercise, I agree (i) to provide such additional documents as
you may require pursuant to the terms of the 1990 INCENTIVE STOCK PLAN, (ii) to
provide for the payment by me to you (in the manner designated by you) of your
withholding obligation, if any, relating to the exercise of this option, and
(iii) if this exercise relates to an incentive stock option, to notify you in
writing within fifteen (15) days after the date of any disposition of any
shares of Common Stock issued upon exercise of this option that occurs within
two (2) years after the date of grant of this option or within one (1) year
after such shares of Common Stock are issued upon exercise of this option.

         I hereby make the following certifications and representations with
respect to the number of shares of Common Stock of the Company listed above (the
"Shares"), which are being acquired by me for my own account upon exercise of
the Option as set forth above:

                                       1.
<PAGE>

         I acknowledge that the Shares have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are deemed to constitute
"restricted securities" under Rule 701 and "control securities" under Rule 144
promulgated under the Act. I warrant and represent to the Company that I have no
present intention of distributing or selling said Shares, except as permitted
under the Act and any applicable state securities laws.

         I further acknowledge that I will not be able to resell the Shares for
at least ninety days after the stock of the Company becomes publicly traded
(i.e., subject to the reporting requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934) under Rule 701 and that more restrictive
conditions apply to affiliates of the Company under Rule 144.

         I further acknowledge that all certificates representing any of the
Shares subject to the provisions of the Option shall have endorsed thereon
appropriate legends reflecting the foregoing limitations, as well as any legends
reflecting restrictions pursuant to the Company's Articles of Incorporation,
Bylaws and/or applicable securities laws.

         I further agree that, if required by the Company (or a representative
of the underwriters) in connection with the first underwritten registration of
the offering of any securities of the Company under the Act, I will not sell or
otherwise transfer or dispose of any shares of Common Stock or other securities
of the Company during such period (not to exceed ninety (90) days) following the
effective date of the registration statement of the Company filed under the Act
(the "Effective Date") as may be requested by the Company or the representative
of the underwriters. For purposes of this restriction I will be deemed to own
securities that (i) are owned directly or indirectly by me, including securities
held for my benefit by nominees, custodians, brokers or pledgees; (ii) may be
acquired by me within sixty (60) days of the Effective Date; (iii) are owned
directly or indirectly, by or for my brothers or sisters (whether by whole or
half blood), spouse, ancestors and lineal descendants; or (iv) are owned,
directly or indirectly, by or for a corporation, partnership, estate or trust of
which I am a shareholder, partner or beneficiary, but only to the extent of my
proportionate interest therein as a shareholder, partner or beneficiary thereof.
I further agree that the Company may impose stop-transfer instructions with
respect to securities subject to the foregoing restrictions until the end of
such period.

                                        Very truly yours,

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

                                       2.<PAGE>

                                                                   EXHIBIT 10.11

                                                               CUSTOMER NO. 1293

                          LOAN AND SECURITY AGREEMENT

         THIS LOAN AND SECURITY AGREEMENT dated as of July 8, 1999, is made by
Repeater Technologies, Inc. (the "Borrower"), a California corporation having
its principal place of business and chief executive office at 1150 Morse Avenue,
Sunnyvale, California, 94089, in favor of Transamerica Business Credit
Corporation, a Delaware corporation (the "Lender"), having its principal office
at 9399 West Higgins Road, Suite 600, Rosemont, Illinois 60018 and having an
office at 76 Batterson Park Road, Farmington, Connecticut 06032.

         WHEREAS, the Borrower has requested that the Lender make a Loan to the
Borrower; and

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

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

         SECTION 1. DEFINITIONS.

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

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

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

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

         Cash Equivalents means (i) securities issued, guaranteed or insured by
the United States or any of its agencies with maturities of not more than one
year from the date acquired; (ii) certificates of deposit with maturities of not
more than one year from the date acquired, issued by any U.S. federal or state
chartered commercial bank of recognized standing which has capital and
unimpaired surplus in excess of $100,000,000; (iii) investments in money market
funds registered under the Investment Company Act of 1940; (iv) mutual funds, at
least 90% of the assets of which constitute Cash Equivalents of the kinds
described in clauses (i)-(iii) of this definition; and (v) other instruments,
commercial paper or investments acceptable to the Lender in its sole discretion.

         Closing Date means the date first set forth above.

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

         Collateral shall have the meaning specified in Section 2.

         Collateral Access Agreement shall mean any landlord waiver, mortgage
waiver, bailee letter, or similar acknowledgement of any warehouseman or
processor in possession of any Collateral.
<PAGE>

         Contingent Obligation means any direct, indirect, contingent or
non-contingent guaranty or obligation for the indebtedness of another Person,
except endorsements in the ordinary course of business.

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

         Event of Default shall mean any event specified in Section 7.

         Financial Statements shall have the meaning specified in Section 6.1.

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

         Loans shall mean the loans and financial accommodations made by the
Lender to the Borrower in accordance with the terms of this Agreement and any
Note delivered hereunder.

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

         Material Adverse Change shall mean, with respect to any Person, a
material adverse change in the business, operations, results of operations,
assets, liabilities, or financial condition of such Person taken as a whole.

         Material Adverse Effect shall mean, with respect to any Person, a
material adverse effect on the business, operations, results of operations,
assets, liabilities, or financial condition of such Person taken as a whole.

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

         Obligations shall mean and include all loans (including the Loans),
advances, debts, liabilities, obligations, covenants and duties owing by
Borrower to Lender of any kind or nature, present or future, whether or not
evidenced by the Note or any note, guaranty or other instrument, whether or not
arising under or in connection with, this Agreement any other Loan Document or
any other present or future instrument or agreement, whether or not for the
payment of money, whether arising by reason of an extension of credit, opening,
guaranteeing or confirming of a letter of credit, loan, guaranty,
indemnification or in any other manner, whether direct or indirect (including
those acquired by assignment, purchase, discount or otherwise), whether absolute
or contingent, due or to become due, now due or hereafter arising and however
acquired (including without limitation all loans previously made by Lender to
Borrower). The term includes, without limitation, all interest (including
interest accruing on or after a bankruptcy, whether or not an allowed claim),
charges, expenses, commitment, facility, closing and collateral management fees,
letter of credit fees, reasonable attorneys' fees, taxes and any other sum
properly chargeable to Borrower under this Agreement, the other Loan Documents
or any other present or future agreement between Lender and Borrower.

         Permitted Liens shall mean such of the following as to which no
enforcement, collection, execution, levy, or foreclosure proceeding shall have
been commenced: (a) liens for taxes, assessments, and other governmental charges
or levies or the claims or demands of landlords, carriers, warehousemen,
mechanics, laborers, materialmen, and other like Persons arising by operation of
law in the ordinary course of business for sums which are not yet due and
payable, or liens which are being contested in good faith by appropriate
proceedings diligently conducted and with respect to which adequate reserves are
maintained to the extent required by GAAP; (b) deposits or pledges to secure the
payment of worker's compensation, unemployment insurance, or other social
security benefits or obligations, public or statutory obligations, surety or
appeal bonds, bid or performance bonds, or other

                                       2
<PAGE>
obligations of a like nature incurred in the ordinary course of business;
(c) licenses, leases, restrictions, or covenants for or on the use of the
Collateral which do not materially impair either the use of the Collateral in
the operation of the business of the Borrower or the value of the Collateral;
(d) attachment or judgment liens that do not constitute an Event of Default;
(e) liens on any item of equipment created substantially simultaneously with the
acquisition of such equipment for the purpose of financing such acquisition,
provided that such lien shall attach only to the equipment acquired and
provided such lien does not secure indebtedness for such equipment in excess of
$1,300,000; and (f) future liens on any item of equipment created substantially
simultaneously with the acquisition of such equipment for the purpose of
financing such acquisition, provided that such lien shall attach only to the
equipment financed and provided that such lien does not secure indebtedness for
such equipment in excess of $500,000 in any twelve (12) month period.

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

          Receivable shall have the meaning set forth in Section 8(e).

          Schedule shall mean Schedule A hereto containing information
pertaining to the Borrower.

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

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

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

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

          Taxes shall have the meaning specified in Section 5.5.

     SECTION 2. CREATION OF SECURITY INTEREST: COLLATERAL. The Borrower hereby
assigns and grants to the Lender a continuing general, lien on, and security
interest in, all the Borrower's right, title, and interest in and to the
collateral described in the next sentence (the "Collateral") to secure the
payment and performance of all the Obligations, subject only to Permitted Liens.
Collateral means Receivables, Investment Property, Inventory, Equipment, and
Other Property and all additions and accessions thereto and substitutions and
replacements therefor and improvements thereon, and all proceeds (whether cash
or other property) and products thereof, including, without limitation, all
proceeds of insurance covering the same and all tort claims in connection
therewith, and all records, files, computer programs and files, data and
writings relating to the foregoing, and all equipment containing the foregoing.

               Equipment means all machinery, equipment, furniture, fixtures,
conveyors, tools, materials, storage and handling equipment, hydraulic presses,
cutting equipment, computer equipment and hardware, including central processing
units, terminals, drives, memory units, printers, keyboards, screens,
peripherals and input or output devices, molds, dies, stamps, vehicles, and
other equipment of every kind and nature and wherever situated now or hereafter
owned by Borrower or in which Borrower may have any interest as lessee or
otherwise (to the extent of such interest), together with all additions and
accessions thereto, all replacements and all accessories and parts therefor, all
manuals, blueprints, know-how, warranties and records in connection therewith,
all rights against suppliers, warrantors, manufacturers, sellers or others in
connection therewith, and together with all substitutes for any of the
foregoing; and

               Inventory means all present and future goods intended for sale,
lease or other disposition by Borrower including, without limitation, all raw
materials, work in process, finished goods and other retail inventory, goods in
the possession of outside processors or other third parties, goods consigned to
Borrower to the extent of its interest therein as consignee, materials and
supplies of any kind, nature or description which are or

                                       3

<PAGE>

might be used in connection with the manufacture, packing, shipping,
advertising, selling or finishing of any such goods, and all documents of title
or documents representing the same; and

               Investment Property means any and all investment property of
Borrower, including all securities, whether certificated or uncertificated,
security entitlements, securities accounts, commodity contracts and commodity
accounts, and all financial assets held in any securities account or otherwise,
wherever located, and whether now existing or hereafter acquired or arising; and

               Other Property means all present and future instruments,
documents, documents of title, securities, bonds, notes, promissory notes,
drafts, acceptances, letters of credit and rights to receive proceeds of letters
of credit, deposit accounts, chattel paper, certificates, insurance policies,
insurance proceeds, leases, computer tapes, causes of action, judgments, claims
against third parties, leasehold rights in any personal property, books,
ledgers, files and records, general intangibles (including without limitation,
all contract rights, tax refunds, rights to receive tax refunds, patents, patent
applications, copyrights (registered and unregistered), royalties, licenses,
permits, franchise rights, authorizations, customer lists, rights of
indemnification, contribution and subrogation, computer programs, discs and
software, trade secrets, computer service contracts, trademarks, trade names,
service marks and names, logos, goodwill, deposits, chooses in action, designs,
blueprints, plans, know-how, telephone numbers and rights thereto, credits,
reserves, and all forms of obligations whatsoever now or hereafter owing to
Borrower), all property at any time in the possession or under the control of
Lender, and all security given by Borrower to Lender pursuant to any other loan
document or agreement; and

               Receivables means all present and future accounts and accounts
receivable, together with all security therefor and guaranties thereof and all
rights and remedies relating thereto, including any right of stoppage in
transit.

          SECTION 3. THE CREDIT FACILITY.

               SECTION 3.1. BORROWINGS. The Lender, subject to the terms and
conditions of this Agreement, agrees to make a Loan to Borrower, at Borrower's
request, in a principal amount not to exceed $5,000,000. Notwithstanding
anything herein to the contrary, the Lender shall be obligated to make such Loan
only after the Lender, in its sole discretion, determines that the applicable
conditions for borrowing contained in Sections 3.3 and 3.4 are satisfied. The
timing and financial scope of Lender's obligation to make Loans hereunder are
limited as set forth in a commitment letter executed by Lender and Borrower,
dated as of June 8, 1999 and attached hereto as Exhibit A (the "Commitment
Letter").

               SECTION 3.2. APPLICATION OF PROCEEDS. The Borrower shall use the
proceeds of the Loans for its general working capital purposes.

               SECTION 3.3. CONDITIONS TO LOAN.

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

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

               (ii) acknowledgement copies of Uniform Commercial Code financing
          statements (naming the Lender as secured party and the Borrower as
          debtor), duly filed in all jurisdictions that the Lender deems
          necessary or desirable to perfect and protect the security interests
          created hereunder, and evidence that all other filings, registrations
          and recordings have been made in the appropriate governmental offices,
          and all other action has been taken, which shall be necessary to
          create, in favor of the Lender, a perfected first priority Lien on the
          Collateral;

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

               (iv) an Intellectual Property Security Agreement, in form and
          substance satisfactory

                                        4
<PAGE>

          to the Lender and its counsel, duly executed by the Borrower,
          specifically identifying and granting to the Lender a security
          interest in all of the Borrower's intellectual property;

               (v) if requested by the Lender, a Collateral Access Agreement
          duly executed by the lessor or mortgagee, as the case may be, of each
          premises where the equipment Collateral is located;

               (vi) a Notice of Security Interest, in form and substance
          satisfactory to the Lender and its counsel, to each financial
          institution at which any deposit accounts of Borrower are maintained;

               (vii) the warrants described in the Commitment Letter, if any;

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

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

               (xi) the opinion of counsel for the Borrower covering such
          matters incident to the transactions contemplated by this Agreement as
          the Lender may reasonably require;

               (xii) evidence of the consent or authorization of, filing with or
          other act by or in respect of any governmental agency or authority or
          any other Person required in connection with the execution, delivery,
          performance, validity or enforceability of this Agreement, or the
          other Loan Documents or the consummation of the transactions
          contemplated hereby or thereby; and

               (xiii) such other documents, agreements and instruments as the
          Lender deems necessary in its sole and absolute discretion in
          connection with the transactions contemplated hereby.

          (b) The security interests in the Collateral granted in favor of the
Lender under this Agreement shall have been duly perfected and shall constitute
first priority liens, except for Permitted Liens.

               SECTION 3.4. ADDITIONAL CONDITIONS PRECEDENT. The obligation of
the Lender to make the Loan is subject to the satisfaction of the following
additional conditions precedent:

          (a) There shall be no pending or, to the knowledge of the Borrower
after due inquiry, threatened litigation, proceeding, inquiry, or other action
(i) seeking an injunction or other restraining order,

                                       5
<PAGE>

damages, or other relief with respect to the transactions contemplated by this
Agreement or the other Loan Documents or thereby or (ii) which affects or is
reasonably likely to affect the business, prospects, operations, assets,
liabilities, or condition (financial) of the Borrower, except, in the case of
clause (ii), where such litigation, proceeding, inquiry, or other action could
not be expected to have a Material Adverse Effect in the reasonable judgment of
the Lender;

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

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

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

               SECTION 3.5. INTEREST RATE REPAYMENT. The interest rate
applicable to the Loan made by the Lender hereunder, and the repayment date for
such Loan, are as set forth in the Note evidencing such Loan.

               SECTION 4. REPRESENTATIONS AND WARRANTIES.

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

               SECTION 4.2. DUE EXECUTION, ETC. The execution, delivery, and
performance by the Borrower of each of the Loan Documents to which it is a party
are within the powers of the Borrower, do not contravene the organizational
documents, if any, of the Borrower, and do not (a) violate any law or
regulation, or any order or decree of any court or governmental authority, (b)
conflict with or result in a breach of, or constitute a default under, any
material indenture, mortgage, or deed of trust or any material lease, agreement,
or other instrument binding on the Borrower or any of its properties, or (c)
require the consent, authorization by, or approval of or notice to or filing or
registration with any governmental authority or other Person, except as may be
set forth in the Schedule. The Agreement is, and each of the other Loan
Documents to which the Borrower is or will be a party, when delivered hereunder
or thereunder, will be, the legal, valid, and binding obligation of the Borrower
enforceable against the Borrower in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, or similar laws
affecting creditors' rights generally and by general principles of equity.

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

               SECTION 4.4. NO JUDGMENTS, LITIGATION. No judgments are
outstanding against the Borrower nor is there now pending or, to the best of the
Borrower's knowledge, threatened any litigation, contested claim, or
governmental proceeding by or against the Borrower except judgments and pending
or

                                       6
<PAGE>

threatened litigation, contested claims, and governmental proceedings which
would not, in the aggregate, have a Material Adverse Effect on the Borrower.

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

               SECTION 4.6. COLLATERAL LOCATIONS. The address of the principal
place of business and chief executive office of Borrower is, and the books and
records of Borrower and all of its chattel paper and records relating to
Collateral are maintained exclusively in the possession of Borrower at, the
address of Borrower specified in the heading of this Agreement. Borrower has
places of business, and Collateral is located, only at such address and at the
addresses set forth in the Schedule and at any additional locations reported to
the Lender as provided in Section 5.7 as to which the Lender has taken all
necessary action to perfect and protect its security interests in the Collateral
at any such locations.

               SECTION 4.7. CORPORATE AND TRADE NAMES; FEDERAL TAX ID. During
the past five years, Borrower has not been known by or used any other corporate,
trade or fictitious name except for its name as set forth on the signature page
of this Agreement and the other names specified in the Schedule. The Borrower's
Federal Tax ID number is as set forth in the Schedule.

               SECTION 4.8. NO EVENTS OF DEFAULT. No Event of Default has
occurred and is continuing nor has any event occurred which, with the giving of
notice or the passage of time, or both, would constitute an Event of Default.

               SECTION 4.9. NO LIMITATION ON LENDER'S RIGHTS. Except as
permitted herein, none of the Collateral is subject to contractual obligations
that may restrict or inhibit the Lender's rights or abilities to sell or dispose
of the Collateral or any part thereof after the occurrence of an Event of
Default.

               SECTION 4.10. PERFECTION AND PRIORITY OF SECURITY INTEREST. This
Agreement creates a valid and, upon completion of all required filings of
financing statements, perfected, and first priority and exclusive, security
interest in the Collateral, except for any Permitted Liens, securing the payment
of all the Obligations.

               SECTION 4.11. INTELLECTUAL PROPERTY. Set forth in the Schedule is
a complete and accurate list of all patents, trademarks, trade names, service
marks and copyrights (registered and unregistered), and all applications
therefor and licenses thereof, of Borrower. Borrower owns or licenses all
material patents, trademarks, service-marks, logos, tradenames, trade secrets,
know-how, copyrights, or licenses and other rights with respect to any of the
foregoing, which are necessary or advisable for the operation of its business as
presently conducted or proposed to be conducted. To the best of its knowledge
after due inquiry, Borrower has not infringed any patent, trademark,
service-mark, tradename, copyright, license or other right owned by any other
Person by the sale or use of any product, process, method, substance, part or
other material presently contemplated to be sold or used, where such sale or use
would reasonably be expected to have a Material Adverse Effect and no claim or
litigation is pending, or to the best of Borrower's knowledge, threatened
against or affecting Borrower that contests its right to sell or use any such
product, process, method, substance, part or other material.

               SECTION 4.12. CONSENTS AND FILINGS. No consent, authorization or
approval of, or filing with or other act by, any shareholders of Borrower or any
governmental authority or other Person is required in connection with the
execution, delivery, performance, validity or enforceability of this Agreement
or any other Loan Document, the consummation of the transactions contemplated
hereby or thereby or the continuing operations of Borrower following such
consummation, except (i) those that have been obtained or made, (ii) the filing
of financing statements under the Code and (iii) any necessary filings with U.S.
Copyright Office and the U.S. Patent and Trademark Office.

                                       7
<PAGE>
               SECTION 4.13.  YEAR 2000 COMPLIANCE. The Borrower has (i)
initiated a review and assessment of all areas within its business and
operations (including those affected by suppliers and vendors) that could be
adversely affected by the "Year 2000 Problem" (that is, the risk that computer
applications used by the Borrower (or its suppliers and vendors) may be unable
to recognize and perform properly date-sensitive functions involving certain
dates prior to and any date after December 31, 1999), (ii) developed a plan and
timeline for addressing the Year 2000 Problem on a timely basis, and (iii) to
date, implemented that plan in accordance with that timetable. The Borrower
reasonably believes that all computer applications (including those of its
suppliers and vendors) that are material to its business and operations will on
a timely basis be able to perform properly date-sensitive functions for all
dates before and after January 1, 2000 (that is, be "Year 2000 compliant"),
except to the extent that a failure to do so could not reasonably be expected to
have Material Adverse Effect.

               SECTION 4.14. TAXES. Borrower has properly completed and timely
filed all income tax returns it is required to file, and all Taxes, assessments,
fees and other governmental charges for periods beginning prior to the date of
this Agreement have been timely paid (or, if not yet due or being disputed in
good faith, adequate reserves therefor have been established in accordance with
GAAP) and Borrower has no liability for Taxes in excess of the amounts so paid
or reserves so established. No-deficiencies for Taxes have been claimed,
proposed or assessed by any taxing or other governmental agency or authority
against Borrower and no notice of any tax lien has been filed. There are no
pending or (to the best knowledge of Borrower) threatened audits, investigations
or claims for or relating to any liability for Taxes and there are no matters
under discussion with any governmental agency or authority which could result in
an additional material liability for Taxes.

               SECTION 4.15. FINANCIAL STATEMENTS. Borrower has provided to the
Lender complete and accurate Financial Statements, which have been prepared in
accordance with GAAP (except for the absence of footnotes and subject to normal
year-end adjustments with respect to unaudited financial statements)
consistently applied throughout the periods involved and fairly present the
financial position and results of operations of Borrower for each of the periods
covered, subject, in the case of any quarterly financial statements, to normal
year-end adjustments and the absence of notes. Borrower has no Contingent
Obligation or liability for Taxes, unrealized losses, unusual forward or
long-term commitments or long-term leases, which is not reflected in such
Financial Statements or the footnotes thereto. Since the last date covered by
such Financial Statements, there has been no sale, transfer or other disposition
by Borrower of any material part of its business or property and no purchase or
other acquisition of any business or property (including any capital stock of
any other Person) material in relation to the financial condition of Borrower at
said date. Since said date, (i) there has been no change, occurrence,
development or event which has had or could reasonably be expected to have a
Material Adverse Effect and (ii) none of the capital stock of Borrower has been
redeemed, retired, purchased or otherwise acquired for value by Borrower.

               STOCK 4.16. ACCURACY AND COMPLETENESS OF INFORMATION. All data,
reports, and information heretofore, contemporaneously, or hereafter furnished
by or on behalf of the Borrower in writing to the Lender or for purposes of or
in connection with this Agreement or any other Loan Document, or any
transaction contemplated hereby or thereby, are or will be true and accurate in
all material respects on the date as of which such data, reports, and
information are dated or certified and not incomplete by omitting to state any
material fact necessary to make such data, reports, and information not
misleading at such time. There are no facts now known to the Borrower which
individually or in the aggregate would reasonably be expected to have a
Material Adverse Effect and which have not been specified herein, in the
Financial Statements, or in any certificate, opinion, or other written
statement previously furnished by the Borrower to the Lender.

          SECTION 5. COVENANTS OF THE BORROWER.

               SECTION 5.1. EXISTENCE, ETC. The Borrower shall: (a) retain its
existence and its current yearly accounting cycle, (b) maintain in full force
and effect all licenses, bonds, franchises, leases, trademarks, patents,
contracts, and other rights necessary or desirable to the profitable conduct of
its business unless the failure to do so could not reasonably be expected to
have a Material Adverse Effect on the Borrower, (c) continue in and limit its
operations to, the same general lines of business as those presently conducted
by it, and

                                       8
<PAGE>
(d) comply with all applicable laws and regulations of any federal, state, or
local governmental authority, except for such laws and regulations the
violations of which would not, in the aggregate, have a Material Adverse Effect
on the Borrower.

               SECTION 5.2. NOTICE TO THE LENDER. As soon as possible, and in
any event within five days after the Borrower learns of the following, the
Borrower will give written notice to the Lender of the following:

               (a) any proceeding instituted or threatened to be instituted by
or against the Borrower in any federal, state, local, or foreign court or
before any commission or other regulatory body (federal, state, local, or
foreign) involving a sum, together with the sum involved in all other similar
proceedings, in excess of $100,000 in the aggregate,

               (b) any contract that us terminated or amended and which has had
or could reasonable be expected to have a Material Adverse Effect on the
Borrower;

               (c) the occurrence of any Material Adverse Change with respect
to the Borrower;

               (d) the occurrence of any Event of Default or Event or condition
which, with notice or lapse of time or both, would constitute an Event of
Default, together with a statement of the action which the Borrower has taken
or proposes to take with respect thereto;

               (e) of any discovery or determination by Borrower that any
computer application (including those of its suppliers and vendors) that is
material to its business and operations will not be Year 2000 compliant on a
timely basis, except to the extent that such failure could not reasonably be
expected to have a Material Adverse Effect;

               (f) of any material damage to, the destruction of or any other
material loss to any Collateral owned or used by Borrower other than any such
Collateral with a net book value (individually or in the aggregate) less than
$10,000 or any condemnation, confiscation or other taking, in whole or in part,
or any event that otherwise diminishes so as to render impracticable or
unreasonable the use of such Collateral owned or used by Borrower together with
the amount of the damage, destruction, loss or diminution in value;

               (g) of any copyright registration made by it, any rights
Borrower may obtain to any copyrightable works, new trademarks or any new
patentable inventions, and of any renewal or extension of any trademark
registration, or if it shall otherwise become entitled to the benefit of any
patent or patent application or trademark or trademark application; and

               (h) of the opening of any new bank account or other deposit
account, and any new securities account.

               SECTION 5.3. MAINTENANCE OF BOOKS AND RECORDS. Borrower shall (i)
maintain adequate books and records (including computer records) pertaining to
the Collateral in such detail, form and scope as is customary for companies in
similar businesses in similar situations and (ii) provide the Lender and its
agents access to the premises of Borrower at any time and from time to time
following notice, during normal business hours and upon reasonable notice under
the circumstances but in no event more than twice a year unless an Event of
Default has occurred and is continuing, and at any time on and after the
occurrence and during the existence of an Event of Default, or event or
condition which, with notice or lapse of time or both, would constitute an
Event of Default, for the purposes of (A) inspecting and verifying the
Collateral, (B) inspecting and copying (at Borrower's expense) any and all
records pertaining thereto, and (C) discussing the affairs, finances and
business of Borrower with any officer, employee or director of Borrower or with
Borrower's accountants. Borrower shall reimburse the Lender for the reasonable
travel and related expenses of the Lender's employees or, at the Lender's
option, of such outside accountants or examiners as may be retained by the
Lender to verify or inspect Collateral, records or documents of Borrower on a
regular basis or for a special inspection if the Lender deems the same
appropriate. If

                                       9
<PAGE>
the Lender's own employees are used, Borrower shall also pay therefor $600 per
person per day (or such other amount as shall represent the Lender's then
current standard charge for the same), or, if outside examiners or accountants
are used, Borrower shall also pay the Lender such reasonable sum as the Lender
may be obligated to pay as fees therefor.

               SECTION 5.4. INSURANCE. Borrower shall maintain public liability
insurance, business interruption insurance, third party property damage
insurance and replacement value insurance on its assets (including the
Collateral) under such policies of insurance, with such insurance companies, in
such amounts and covering such risks as are at all times reasonably
satisfactory to the Lender in its commercially reasonable judgment, all of
which policies covering the Collateral shall name the Lender as an additional
insured and lender loss payee in case of loss, and contain other provisions as
the Lender may reasonably require to protect fully the Lender's interest in the
Collateral and any payments to be made under such policies.

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

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

               SECTION 5.7. CHANGE OF LOCATION, STRUCTURE, OR IDENTITY. The
Borrower will give Lender at least 30 days prior written notice of any change
of Borrower's chief executive office or of the opening of any additional place
of business. The Borrower will not move or permit the movement of any item of
Collateral from the locations specified in the Schedule, except that the
Borrower keep Collateral at other locations within the United States provided
that the Borrower has delivered to the Lender (i) prior written notice thereof
and (ii) duly executed financing statements and other agreements and instruments
(all in form and substance satisfactory to the Lender) necessary or, in the
opinion of the Lender, desirable to perfect and maintain in favor of the Lender
a first priority security interest in the Collateral. Notwithstanding anything
to the contrary in the immediately preceding sentence, the Borrower may keep any
Collateral consisting of motor vehicles or rolling stock at any location in the
United States provided that the Lender's security interest in any such
Collateral is conspicuously marked on the certificate of title thereof and the
Borrower has complied with the provisions of Section 5.9.

               SECTION 5.8. USE OF COLLATERAL; LICENSES; REPAIR. The Collateral
shall be operated by competent, qualified personnel in connection with the
Borrower's business purposes, for the purpose for which the Collateral was
designed and in accordance with applicable operating instructions, laws and
government regulations, and the Borrower shall use every reasonable precaution
to prevent loss or damage to the Collateral from fire and other hazards. The
Borrower shall procure and maintain in effect all orders, licenses,
certificates, permits, approvals, and consents required by federal, state, or
local laws or by any governmental body, agency, or authority in connection with
the delivery, installation, use, and operation of the Collateral.

               SECTION 5.9. FURTHER ASSURANCES. The Borrower will, promptly
upon request by the Lender, execute and deliver or use its best efforts to
obtain any document reasonably required by the Lender

                                       10
<PAGE>
(including, without limitation, warehouseman or processor disclaimers,
mortgagee waivers, landlord disclaimers, or subordination agreements with
respect to the Obligations and the Collateral), give any notices, execute and
file any financing statements, mortgages, or other documents (all in form and
substance reasonably satisfactory to the Lender), mark any chattel paper,
deliver any chattel paper or instruments to the Lender, and take any other
actions that are necessary or, in the opinion of the Lender, desirable to
perfect or continue the perfection and the first priority of the Lender's
security interest in the Collateral, to protect the Collateral against the
rights, claims, or interests of any Persons, or to effect the purposes of this
Agreement. The Borrower hereby authorizes the Lender to file one or more
financing or continuation statements, and amendments thereto, relating to all
or any part of the Collateral without the signature of the Borrower where
permitted by law. A carbon, photographic, or other reproduction of this
Agreement or any financing statement covering the Collateral or any part
thereof shall be sufficient as a financing statement where permitted by law. To
the extent required under this Agreement, the Borrower will pay all costs
incurred in connection with any of the foregoing.

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

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

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

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

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

               SECTION 5.15. INTELLECTUAL PROPERTY. Borrower shall do and cause
to be done all things necessary to preserve, maintain and keep in full force
and effect all of its registrations of trademarks, service marks and other
marks, trade names and other trade rights, patents, copyrights and other
intellectual property in accordance with prudent business practices, except to
the extent that the failure to preserve or maintain any of the

                                       11
<PAGE>
foregoing would not reasonably be expected to have a Material Adverse Effect.
Without limiting the generality of the foregoing, Borrower agrees promptly,
and in any event not later than 30 days after the date hereof, to have any of
its currently unregistered copyrightable software, computer programs and other
materials registered with the U.S. Copyright Office in Washington, D.C. (the
"Copyright Office") and to promptly provide TBCC with evidence of such
registration. Borrower will, on an ongoing basis, promptly register any future
unregistered copyrightable software, computer programs and other materials with
the Copyright Office.

               SECTION 5.16. FUNDAMENTAL CHANGES. The Borrower shall not (a)
amend or modify its name, unless the Borrower delivers to the Lender twenty
days prior to any such proposed amendment or modification written notice of
such amendment or modification and within ten days before such amendment or
modification delivers executed Uniform Commercial Code financing statements (in
form and substance satisfactory to the Lender) or (b) merge or consolidate with
any other entity or make any material change in its capital structure, in each
case without the Lender's prior written consent which shall not be unreasonably
withheld.

               SECTION 5.17. CONTINGENT OBLIGATIONS. Borrower will not, directly
or indirectly, incur, assume, or suffer to exist any Contingent Obligation,
excluding indemnities given in connection with this Agreement or the other Loan
Documents in favor of the Lender or in connection with the sale of inventory or
other asset dispositions permitted hereunder, except Contingent Obligations and
other similar third party credit support relating to obligations of vendors and
suppliers of Borrower in respect of transactions entered into in the normal
course of business, provided that the aggregate amount of any such guarantees
and other similar third party credit support shall not exceed $100,000 at any
time outstanding, and provided further that no Default or Event of Default shall
exist either immediately prior to or after giving effect to the making of the
foregoing guarantees or the entering into any third party credit support
transactions.

               SECTION 5.18. CHANGE IN NATURE OF BUSINESS. Borrower will not at
any time make any material change in the lines of its business as carried on at
the date of this Agreement or enter into any new line of business; provided
that Borrower may enter businesses reasonably related or incidental to its
current lines of business.

               SECTION 5.19. SALES OF ASSETS. Borrower will not, directly or
indirectly, in any fiscal year, sell, transfer or otherwise dispose of any
assets, or grant any option or other right to purchase or otherwise acquire any
assets other than (i) equipment with an aggregate value of less than $25,000 the
proceeds of which shall be paid to the Lender and applied to the Obligations,
(ii) sales of inventory in the ordinary course of business and (iii) licenses or
sublicenses on a non-exclusive basis of intellectual property in the ordinary
course of Borrower's business.

               SECTION 5.20. LOANS TO OTHER PERSONS. Borrower will not at any
time make loans or advance any credit (except to trade debtors in the ordinary
course of business) to any Person in excess of $25,000 in the aggregate at any
time for all such loans, except that Borrower may make cashless advances of
credit to senior members of Borrower's management team to purchase restricted
stock of Borrower.

               SECTION 5.21. DIVIDENDS, STOCK REDEMPTIONS. Borrower will not,
directly or indirectly, pay any dividends or distributions on, purchase, redeem
or retire any shares of any class of its capital stock or any warrants, options
or rights to purchase any such capital stock, whether now or hereafter
outstanding ("Stock"), or make any payment on account of or set apart assets
for a sinking or other analogous fund for, the purchase, redemption,
defeasance, retirement or other acquisition of its Stock, or make any other
distribution in respect thereof, either directly or indirectly, whether in cash
or property or in obligations of Borrower, except for dividends paid solely in
stock of the Borrower and repurchases of stock owned by employees, directors
and consultants of Borrower pursuant to terms of employment, consulting or
other stock restrictions agreements at such time as any such employee, director
or consultant terminates his or her affiliations with the Borrower, provided
that no Default or Event of Default shall exist either immediately prior to or
after giving effect to such repurchase, and provided further that the total
amount paid in connection therewith by Borrower shall not exceed $50,000 in any
consecutive 12-month period.

                                       12
<PAGE>
     SECTION 5.22. INVESTMENTS IN OTHER PERSONS.  Borrower will not directly
or indirectly, at any time make or hold any Investment in any Person (whether
in cash, securities or other property of any kind) other than investments in
Cash Equivalents.

     SECTION 5.23. ACQUISITION OF STOCK OR ASSETS.  Borrower will not acquire
or commit or agree to acquire all or any stock, securities or assets of any
other Person other than inventory and equipment acquired in the ordinary course
of business.

     SECTION 5.24. PARTNERSHIPS; SUBSIDIARIES; JOINT VENTURES; MANAGEMENT
CONTRACTS.  Borrower will not at any time create any direct or indirect
Subsidiary, enter into any joint venture or similar arrangement (other than
joint ventures or strategic partnerships consisting of non-exclusive licensing
of technology or the providing of technical support) or become a partner in any
general or limited partnership or enter into any management contract (other than
an employment contract for the employment of an officer or employee entered
into in the regular course of Borrower's business) permitting third party
management rights with respect to Borrower's business.

     SECTION 5.25. RIGHT OF FIRST AND LAST REFUSAL.  If and when, during the
term of the Loan, Borrower seeks accounts receivable and/or inventory
financing, Borrower will so notify Lender and permit Lender to make a proposal
to provide such financing.  Lender must reply to Borrower's notice within 15
days of the date of such notice, indicating whether Lender accepts or declines
to make such proposal.  Borrower will be required to accept Lender's proposal
if the terms and conditions of the proposal are no less favorable to Borrower
than any other proposal received by Borrower.  Subject to the foregoing Right
of First and Last Refusal, if Lender does not provide the additional financing,
Lender will subordinate priority of its security interest in accounts
receivable and inventory for up to $2,000,000 in revolving debt financing
provided by other lenders.  Said first and last refusal requirement shall be in
effect through December 31, 1999.

     SECTION 5.26.  ADDITIONAL REQUIREMENTS.  The Borrower shall take all such
further actions and execute all such further documents and instruments as the
Lender may reasonably request.

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

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

     SECTION 6.2.  QUARTERLY FINANCIAL STATEMENTS.  As soon as available, but
not later than 30 days after the end of each of the first three fiscal quarters
in any fiscal year of the Borrower and its consolidated subsidiaries, the
Financial Statements for such fiscal quarter, together with a certification
duly executed by a responsible officer of the Borrower that such Financial
Statements have been prepared in accordance with GAAP and are fairly stated in
all material respects (subject to normal year-end audit adjustments).

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

     (a)  the Borrower shall fail to pay when due any principal, interest,
fee or other amount required to be paid by the Borrower under or in connection
with any Note and this Agreement;

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

                                       13
<PAGE>
          (c)  the Borrower shall fail to perform or observe (i) any of the
terms, covenants or agreements contained in Sections 5.4, 5.7, 5.10, 5.14 or
5.16 through 5.25 hereof or (ii) any other term, covenant, or agreement
contained in any Loan Document (other than the other Events of Default
specified in this Section 7) and such failure remains unremedied for the
earlier of ten days from (A) the date on which the Lender has given the
Borrower written notice of such failure and (B) the date on which the Borrower
knew of such failure;

          (d)  any defined "Event of Default" shall occur under any other Loan
Document; or Borrower or any Person shall deny or disaffirm its obligations
under any of the Loan Documents or any Liens granted in connection therewith or
shall otherwise challenge any of its obligations under any of the Loan
Documents; or any Liens granted in any of the Collateral shall be determined to
be void, voidable or invalid, are subordinated or are not given the priority
contemplated by this Agreement; or any Loan Document shall for any reason cease
to create a valid and perfected Lien on the Collateral purported to be covered
thereby, of first priority (except for Permitted Liens);

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

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

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

          (h)  the Borrower shall default in (i) the payment of principal or
interest on any indebtedness in excess of $100,000 (other than the Obligations)
beyond the period of grace, if any, provided in the instrument or agreement
under which such indebtedness was created, and such payment default has not
been cured within any applicable grace period unless such default has been
waived by such Person; or (ii) the observance or performance of any other
agreement or condition relating to any such indebtedness or contained in any
instrument or agreement relating thereto, or any other event shall occur or
condition exist, the effect of which default or other event or condition is to
cause, or to permit the holder or holders of such indebtedness to cause, with
the giving of notice if required, such indebtedness to become due prior to its
stated maturity, and such default has not been cured within any applicable
grace period unless such default has been waived by such Person; or (iii) any
loan or other agreement under which the Borrower has received financing from
Transamerica Corporation or any of its affiliates;

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

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

          (k)  any judgment or order for the payment of money in excess of
$50,000 and not otherwise covered by applicable insurance shall be rendered
against the Borrower and such judgement or order shall not be stayed, vacated,
bonded, or discharged within thirty days;

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

                                       14

<PAGE>
          (n)  there is a change, which change results from a single
transaction or series of related transactions, but not from the sale of newly
issued securities to investors, in more than 35% of the ownership of any equity
interests of the Borrower on the date hereof or more than 35% of such interests
become subject to any contractual, judicial, or statutory lien, charge,
security interest, or encumbrance.

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

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

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

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

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

          (e)  The Lender may accelerate or extend the time of payment,
compromise, issue credits, or bring suit on all accounts receivable
("Receivables") and other Collateral (in the name of Borrower or the Lender)
and otherwise administer and collect the Receivables and other Collateral.

          (f)  The Lender may collect, receive, dispose of and realize upon any
investment property Collateral, including withdrawal of any and all funds from
any securities accounts.

          (g)  The Lender may (i) settle or adjust disputes or claims directly
with account debtors for amounts and upon terms which it considers advisable,
and (ii) notify account debtors on the Receivables and other Collateral that
the Receivables and Collateral have been assigned to the Lender, and that
payments in respect thereof shall be made directly to the Lender. If an Event
of Default has occurred and is continuing, Borrower hereby irrevocably
authorizes and appoints the Lender, or any Person the Lender may designate, as
its attorney-in-fact, at Borrower's sole cost and expense, to exercise, all of
the following powers, which are coupled with an interest and are irrevocable,
until all of the Obligations have been indefeasibly paid and satisfied in full
in cash:  (A) to receive, take, endorse, sign, assign and deliver, all in the
name of the Lender or Borrower, any and all checks, notes, drafts, and other
documents or instruments relating to the Collateral; (B) to receive, open and
dispose of all mail addressed to Borrower and to notify postal authorities to
change the address for delivery thereof to such address as the Lender may
designate; and (C) to take or bring, in the name of the Lender or Borrower, all
steps, actions, suits or proceedings deemed by the Lender necessary or desirable
to enforce or effect collection of Receivables and other Collateral or file and
sign Borrower's name on a proof of claim in bankruptcy or similar document
against any obligor of Borrower.

          (h)  The Borrower agrees that, to the extent notice of sale shall be
required by law, at

                                       15
<PAGE>
least ten days' notice to the Borrower of the time and place of any public sale
or the time after which any private sale is to be made shall constitute
reasonable notification. The Lender shall not be obligated to make any sale of
Collateral regardless of notice of sale having been given. The Lender may
adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned. Borrower recognizes
that the Lender may be unable to make a public sale of any or all of any
investment property Collateral, by reason of prohibitions contained in
applicable securities laws or otherwise, and expressly agrees that a private
sale to a restricted group of purchasers for investment and not with a view to
any distribution thereof shall be considered a commercially reasonable sale.

          (i)  Unless expressly prohibited by any licensor thereof, the Lender
is hereby granted a license to use all computer software programs, data bases,
processes, trademarks, tradenames and materials used by Borrower in connection
with its businesses or in connection with the Collateral.

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

         SECTION 9.  MISCELLANEOUS PROVISIONS.

               SECTION 9.1. NOTICES. Except as otherwise provided herein, all
notices, approvals, consents, correspondence, or other communications required
or desired to be given hereunder shall be given in writing and shall be
delivered by overnight courier, hand delivery, or certified or registered mail,
postage prepaid, if to the Lender, then to at 76 Batterson Park Road,
Farmington, Connecticut 06032, with a copy to the Lender at Riverway II, West
Office Tower, 9399 West Higgins Road, Rosemont, Illinois 60018, and if to the
Borrower, then to 1150 Morse Avenue, Sunnyvale, California 94089, or such other
address as shall be designated by the Borrower or the Lender to the other party
in accordance herewith. All such notices and correspondence shall be effective
when received.

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

               SECTION 9.3. ASSIGNMENTS AND PARTICIPATIONS. The Borrower shall
not have the right to assign any Note or this Agreement or any interest therein
unless the Lender shall have given the Borrower prior written consent and the
Borrower and its assignee shall have delivered assignment documentation in form
and substance satisfactory to the Lender in its sole discretion. The Lender may
assign (without the consent of Borrower) to one or more Persons all or a portion
of its rights and obligations under this Agreement and the other Loan Documents
(provided that such Person shall not be a direct or indirect competitor of the
Borrower). The Lender may sell participations in or to all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of any Loans); provided, however, that the Lender's obligations
under this Agreement shall remain unchanged. The Lender may, in connection with
any permitted assignment or participation or proposed assignment or
participation pursuant to this Agreement, disclose to the assignee or
participant or proposed assignee or participant any information relating to
Borrower furnished to the Lender by or on behalf of Borrower.

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

               SECTION 9.5. INTERPRETATION OF AGREEMENT. Time is of the
essence in each

                                       16
<PAGE>
provision of this Agreement of which time is an element. All terms not defined
herein or in a Note shall have the meaning set forth in the applicable Code,
except where the context otherwise requires. To the extent a term of provision
of this Agreement conflicts with any Note, or any term or provision thereof, and
is not dealt with herein with more specificity, this Agreement shall control
with respect to the subject matter of such term or provision. Acceptance of or
acquiescence in a course of performance rendered under this Agreement shall not
be relevant in determining the meaning of this Agreement even though the
accepting or acquiescing party had knowledge of the nature of the performance
and opportunity for objection.

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

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

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

     SECTION 9.9.  INDEMNIFICATION.  The Borrower agrees to indemnify and hold
harmless the Lender and its directors, officers, agents, employees, and counsel
from and against any and all costs, expenses, claims, or liability incurred by
the Lender or such Person hereunder and under any other Loan Document or in
connection herewith or therewith, unless such claim or liability shall be due to
willful misconduct or gross negligence on the part of the Lender or such Person.
In addition and without limiting the generality of the foregoing, Borrower
shall, upon demand, pay to the Lender all reasonable costs and expenses incurred
by the Lender (including the reasonable fees and disbursements of counsel and
other professionals) in connection with the preparation, execution, delivery,
administration, modification and amendment of the Loan Documents, and pay to the
Lender all reasonable costs and expenses (including the reasonable fees and
disbursements of counsel and other professionals) paid or incurred by the Lender
in order to enforce or defend any of its rights under or in respect of this
Agreement, any other Loan Document or any other document or instrument now or
hereafter executed and delivered in connection herewith, collect the Obligations
or otherwise administer this Agreement, foreclose or otherwise realize upon the
Collateral or any part thereof, prosecute actions against, or defend actions by,
account debtors; commence, intervene in, or defend any action or proceeding;
initiate any complaint to be relieved of the automatic stay in bankruptcy; file
or prosecute any probate claim, bankruptcy claim, third-party claim, or other
claim; examine, audit, copy, and inspect any of the Collateral or any of
Borrower's books and records; protect, obtain possession of, lease, dispose of,
or otherwise enforce the Lender's security interest in the Collateral; and
otherwise represent the Lender in any litigation relating to Borrower.

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

     SECTION 9.11.  SEVERABILITY.  In case any provision in or obligation
under this Agreement or any Note or any other Loan Document shall be invalid,
illegal, or unenforceable in any jurisdiction, the validity, legality, and
enforceability of the remaining provisions or obligations, or of such provision
or

                                       17

<PAGE>
obligation in any other jurisdiction, shall not in any way be affected or
impaired thereby.

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

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

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

     SECTION 9.15.  JOINT AND SEVERAL LIABILITY.  If Borrower consists of more
than one Person, their liability shall be joint and several, and the compromise
of any claim with, or the release of, any Borrower shall not constitute a
compromise with, or a release of, any other Borrower.

     SECTION 9.16.  MAXIMUM RATE.  Notwithstanding anything to the contrary
contained elsewhere in this Agreement or in any other Loan Document, the
parties hereto hereby agree that all agreements between them under this
Agreement and the other Loan Documents, whether now existing or hereafter
arising and whether written or oral, are expressly limited so that in no
contingency or event whatsoever shall the amount paid, or agreed to be paid, to
the Lender for the use, forbearance, or detention of the money loaned to
Borrower and evidenced hereby or thereby or for the performance or payment of
any covenant or obligation contained herein or therein, exceed the maximum
non-usurious interest rate, if any, that at any time or from time to time may be
contracted for, taken, reserved, charged or received on the Obligations, under
the laws of the State of Illinois (or the laws of any other jurisdiction whose
laws may be mandatorily applicable notwithstanding other provisions of this
Agreement and the other Loan Documents), or under applicable federal laws which
may presently or hereafter be in effect and which allow a higher maximum
non-usurious interest rate than under the laws of the State of Illinois (or such
other jurisdiction), in any case after taking into account, to the extent
permitted by applicable law, any and all relevant payments or charges under this
Agreement and the other Loan Documents executed in connection herewith, and any
available exemptions, exceptions and exclusions (the "Highest Lawful Rate"). If
due to any circumstance whatsoever, fulfillment of any provisions of this
Agreement or any of the other Loan Documents at the time performance of such
provision shall be due shall exceed the Highest Lawful Rate, then,
automatically, the obligation to be fulfilled shall be modified or reduced to
the extent necessary to limit such interest to the Highest Lawful Rate, and if
from any such circumstance the Lender should ever receive anything of value
deemed interest by applicable law which would exceed the Highest Lawful Rate,
such excessive interest shall be applied to the reduction of the principal
amount then outstanding hereunder or on account of any other then outstanding
Obligations and not to the payment of interest, or if such excessive interest
exceeds the principal unpaid balance then outstanding hereunder and such other
then outstanding Obligations, such excess shall be refunded to Borrower.  All
sums paid or agreed to be paid to the Lender for the use, forbearance, or
detention of the Obligations and other indebtedness of Borrower to the Lender
shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full term of such indebtedness, until
payment in full thereof, so that the actual rate of interest on account of all
such indebtedness does not exceed the Highest Lawful Rate throughout the entire
term of such indebtedness.  The terms and provisions of this Section shall
control every other provision of this Agreement, the other Loan Documents and
all other agreements between the parties hereto.

                                       18
<PAGE>
                         SECTION 9.17. WAIVER OF JURY TRIAL. THE BORROWER AND
THE LENDER IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY
OTHER LOAN DOCUMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

                         SECTION 9.18. GOVERNING LAW, THE VALIDITY,
INTERPRETATION, AND ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS WITHOUT GIVING
EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

                         SECTION 9.19. VENUE; SERVICE OF PROCESS. ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
MAY BE BROUGHT IN THE COURTS OF THE STATE OF ILLINOIS SITUATED IN COOK COUNTY,
OR OF THE UNITED STATES OF AMERICA FOR THE NORTHERN DISTRICT OF ILLINOIS, AND,
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER HEREBY ACCEPTS FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. THE BORROWER HEREBY IRREVOCABLY WAIVES,
IN CONNECTION WITH ANY SUCH ACTION OR PROCEEDING, (a) ANY OBJECTION, INCLUDING,
WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS AND
(b) THE RIGHT TO INTERPOSE ANY NONCOMPULSORY SETOFF, COUNTERCLAIM, OR
CROSS-CLAIM. THE BORROWER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY
OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF
COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE
BORROWER AT THE ADDRESS FOR IT SPECIFIED IN SECTION 9.1 HEREOF. NOTHING HEREIN
SHALL AFFECT THE RIGHT OF THE LENDER TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
THE BORROWER IN ANY OTHER JURISDICTION, SUBJECT IN EACH INSTANCE TO THE
PROVISIONS HEREOF WITH RESPECT TO RIGHTS AND REMEDIES.

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

                                   REPEATER TECHNOLOGIES, INC.

                                   By: /s/ KEN KENITZER
                                     -------------------------
                                     Name:
                                     Title: President and CEO

Accepted as of the
    day of July, 1999
---

TRANSAMERICA BUSINESS CREDIT CORPORATION

By: /s/ GARY P. MORO
  --------------------------------------
  Name:  Gary P. Moro
  Title: Senior Vice President

                                       19
<PAGE>
                                   SCHEDULE A

                                       TO

                          LOAN AND SECURITY AGREEMENT

Consents and Approvals (Section 4.2):

Other Places of Business and Locations of Collateral (Section 4.16):

Prior Names of Obligor (Section 4.7):

Prior Trade Names of Obligor (Section 4.7):

Existing Trade Names of Obligor (Section 4.7):

Federal Tax ID (Section 4.7):

Registered and Unregistered Patents (Section 4.11):

Registered and Unregistered Trademarks (Section 4.11):

Registered Copyrights (Section 4.11):

<PAGE>

                   [TRANSAMERICA BUSINESS CREDIT LETTERHEAD]

                                   EXHIBIT A

                                 FINAL REVISION
June 8, 1999

Mr. Todd B. Schull
Chief Financial Officer
Repeater Technologies, Inc.
1150 Morse Avenue
Sunnyvale, California 94089

Dear Todd:

Transamerica Business Credit Corporation - Technology Finance Division
("Lender") is pleased to offer financing described in this letter to Repeater
Technologies, Inc. ("Borrower"). This Commitment supersedes all prior
correspondence, proposals, and oral or other communications relating to
financing arrangements between Borrower and Lender.

The outline of this offer is as follows:

Lender:                             Transamerica Business Credit Corporation -
                                    Technology Finance Division and/or its
                                    affiliates, successors or assigns.

Borrower:                           Repeater Technologies, Inc.

Amount of Loans:                    Term Loan not to exceed $5,000,000 in the
                                    aggregate.

Collateral:                         To secure the loans, Lender will require a
                                    first priority security interest in all
                                    assets of Borrower, including intellectual
                                    property, now owned or hereafter acquired,
                                    including, but not limited to, cash,
                                    accounts receivable, inventory, machinery,
                                    equipment, furniture, fixtures, tools,
                                    copyrights, patents, licenses, trademarks,
                                    tradenames, leases, leasehold improvements,
                                    general intangibles, and all other assets
                                    (the "Collateral"). Lender's lien and
                                    security interest shall be junior only to
                                    existing liens under leases against
                                    particular equipment securing debt used to
                                    finance such equipment in an amount not to
                                    exceed $1,300,000 and to future liens under
                                    leases against particular equipment securing
                                    debt used to finance such equipment in an
                                    amount not to exceed $500,000 per annum.

Location of Collateral:             California

Right of First and                  If and when, during the term of the Loan,
Last Refusal:                       Borrower seeks accounts receivable and/or
                                    inventory financing, Borrower will so notify
                                    Lender and permit Lender to make a proposal
                                    to provide such financing. Lender must reply
                                    to Borrower's notice within 15 days of the
                                    date of such notice, indicating whether
                                    Lender accepts or declines to make such
                                    proposal. Borrower will be required to
                                    accept Lender's proposal if the terms and
                                    conditions of the proposal received by
                                    Borrower. Subject to the foregoing Right of
                                    First and Last Refusal, if Lender does not
                                    provide the additional financing, Lender
                                    will subordinate priority of its security
                                    interest in accounts receivable and
<PAGE>
                         inventory for up to $2,000,000 in revolving debt
                         financing provided by other lenders. Said first and
                         last refusal requirement shall be in effect through
                         December 31, 1999.

Availability:            $3,000,000 must be drawn at the time of closing this
                         transaction. The remaining $2,000,000 will be made
                         available and must be drawn down upon the Borrower
                         closing a purchase contract with Sprint, which
                         contract shall be reviewed by Lender to insure
                         contract is consistent with information previously
                         supplied to Lender, and provided that the purchase
                         contract closes prior to September 30, 1999.

Drawn-Down Expiration:   A required funding of $1,500,000 of the initial
                         $3,000,000  Availability will take place prior to June
                         30, 1999 or within 30 days of closing this
                         transaction. The balance of the initial $3,000,000
                         Availability will fund no later than March 31, 2000.

Interest and Repayments  Interest will accrue at a rate of 13% per annum.
Terms:                   Interest-only payments shall be paid monthly in
                         arrears for the first 6 months, followed by 30
                         payments of principal and interest (equal to 3.922%)
                         shall be paid monthly in arrears.

                         Lender reserves the right to increase the rate set
                         forth above as of the date each Loan Term commences
                         proportionally to the change in the weekly average of
                         the interest rates of three-year U.S. Treasury
                         Securities (as published in the Wall Street Journal)
                         from the week ending March 12, 1999 (5.10%) to the
                         week preceding the commencement of that Loan Term. As
                         of the date each Loan Term commences, the Monthly
                         Payment will be fixed for that entire Loan Term. A
                         schedule of actual monthly payment amounts will be
                         provided by the Lender following commencement of each
                         Loan Term.

Interim Payment:         An Interim Payment will accrue from the date of funding
                         each Loan until the next following first day of a month
                         (unless the Loan is funded on the first day of a
                         month). The Interim Payment will be calculated at the
                         daily equivalent of the currently adjusted Monthly
                         Payment.

Prepayment:              Borrower will have the right to prepay the Loan at any
                         time after the first 12 months of each Loan Term. The
                         amount of any prepayment will be equal to the present
                         value of the remaining payments due under the Loan
                         discounted, on a simple interest basis, at the rate of
                         6% per annum during months 13-18, 7% per annum during
                         months 19-24, and 8% per annum during months 25-36.

Warrants:                As an inducement to the Lender to provide financing on
                         the terms generally outlined herein, Borrower will
                         grant to Lender Warrants to purchase 100,000 shares of
                         common stock of the Borrower at an exercise price
                         equal to $5.50 per share. The Warrants will be
                         exercisable for a period of seven (7) years. The
                         Lender will have the option to exercise the Warrants
                         without payment of the exercise price and receive only
                         that number of shares which represents the value of
                         the difference between the fair market value of the
                         shares and the exercise price (i.e., "net issuance" or
                         "cashless exercise").

                                       2
<PAGE>

Insurance:               Prior to any funding, the Borrower will furnish
                         confirmation of insurance acceptable to the Lender
                         covering the Collateral including primary, all risk,
                         physical damage, property damage and bodily injury with
                         appropriate loss payee and additional insured
                         endorsements in favor of the Lender.

Conditions Precedent     Each Loan will be subject to the following:
to Lending:              1. No material adverse change in the financial
                            condition, operations or prospects of the Borrower
                            prior to funding. The Lender reserves the right to
                            rescind any unused portion of its commitment in the
                            event of a material adverse change in the financial
                            condition, operation or prospects of the Borrower.
                         2. Completion of the documentation and final terms of
                            the proposed financing satisfactory to Lender and
                            Lender's counsel.
                         3. Results of all due diligence, including lien,
                            judgment and tax search and other matters Lender may
                            request shall be satisfactory to Lender and Lender's
                            counsel.
                         4. Receipt by Lender of duly executed loan
                            documentation in form and substance satisfactory to
                            Lender and its counsel.
                         5. Lender shall receive a valid and perfected first
                            priority lien and security interest in the
                            Collateral and Lender shall have received
                            satisfactory evidence that there are no liens on the
                            Collateral except as expressly permitted herein.
                         6. Satisfactory review of March 30, 1999 audited
                            financial statements by Lender prior to funding.
                         7. Satisfactory review of convertible note agreement by
                            Lender's counsel.

Additional               There will be no actual or threatened conflict with,
Covenants:               or violation of, any regulatory statute, standard or
                         rule relating to the Borrower, its present or future
                         operations, or the Collateral.

                         Borrower will be required to provide quarterly
                         financial information. All information supplied by the
                         Borrower will be correct and will not omit any
                         statement necessary to make the information supplied
                         not be misleading. There will be no material breach of
                         the representations and warranties of the Borrower in
                         the loan.

Expenses:                All costs and expenses incurred by the Lender in
                         connection with the underwriting and closing of the
                         Loans will be paid by the Borrower whether or not any
                         Loans are consummated and funds are advanced by the
                         Lender.

Law:                     This letter and the proposed Loan are intended to be
                         governed by and construed in accordance with Illinois
                         law without regard to its conflict of law provisions.

Indemnity:               Borrower agrees to indemnify and to hold harmless
                         Lender, and its officers, directors and employees
                         against all claims, damages, liabilities and expenses
                         which may be incurred by or asserted against any such
                         person in connection with or arising out of this letter
                         and the transactions contemplated hereby, other than
                         claims, damages, liability, and expense

                                       3
<PAGE>
                              resulting from such person's gross negligence or
                              willful misconduct.

Confidentiality:              This letter is delivered to you with the
                              understanding that neither it nor its substance
                              shall be disclosed publicly or privately to any
                              third person except those who are in a
                              confidential relationship to you (such as your
                              legal counsel and accountants), or where the same
                              is required by law and then only on the basis that
                              it not be further disclosed, which conditions
                              Borrower and its agents agree to be bound by upon
                              acceptance of this letter.

                              Without limiting the generality of the foregoing,
                              none of such persons shall use or refer to Lender
                              or to any affiliate name in any disclosures made
                              in connection with any of the transactions without
                              Lender's  prior written consent.

                              Upon completion of the initial takedown by
                              Borrower, the Borrower will no longer be required
                              to obtain Lender's prior written consent to
                              disclose the transaction contemplated hereby. In
                              addition, the Borrower agrees to provide camera
                              ready artwork of typestyles and logos of the
                              Borrower for use in promotional material by the
                              Lender.

Conditions of Acceptance:     This Commitment Letter is intended to be a summary
                              of the most important elements of the agreement to
                              enter into a loan transaction with Borrower, and
                              it is subject to all requirements and conditions
                              contained in Loan documentation proposed by Lender
                              or its counsel in the course of closing the Loans
                              described herein. Not every provision that imposes
                              duties, obligations, burdens, or limitations on
                              Borrower is contained herein, but shall be
                              contained in the final Loan documentation
                              satisfactory to Lender and its counsel.

                              EACH OF THE PARTIES HERETO IRREVOCABLY AND
                              UNCONDITIONALLY WAIVES ALL RIGHT TO TRIAL BY JURY
                              IN ANY SUIT, ACTION, PROCEEDING OR COUNTERCLAIM
                              ARISING OUT OF OR RELATED TO THIS LETTER OR THE
                              TRANSACTION DESCRIBED IN THIS LETTER.

Application Fee:              The $35,000 Application Fee previously paid by the
                              Borrower shall be applied first to expenses
                              incurred by Lender and the balance will be applied
                              to the non-refundable Commitment Fee.

Commitment Fee:               A non-refundable Commitment Fee equal to $50,000
                              will be due the Lender upon acceptance of this
                              commitment.

                                       4

<PAGE>
Commitment Expiration:  This commitment shall expire on June 15, 1999 unless
                         prior thereto either extended in writing by the Lender
                         or accepted as provided below by the Borrower.

Should you have any questions, please call me. If you wish to accept this
Commitment, please so indicate by signing and returning the enclosed duplicate
copy of this letter to me by June 15, 1999.

                                       Yours truly,

                                       TRANSAMERICA BUSINESS CREDIT
                                       CORP-TECHNOLOGY FINANCE
                                       DIVISION

                                       By /s/ GERALD A. MICHAUD
                                          -------------------------------
                                          Gerald A. Michaud
                                          Senior Vice President-Marketing

Accepted this 9th day of June, 1999.

REPEATER TECHNOLOGIES, INC.

By /s/ TODD SCHULL
------------------
Name:  Todd Schull
Title: V.P. & CFO

                                       5
<PAGE>

                          AMENDMENT TO LOAN DOCUMENTS

BORROWER:      REPEATER TECHNOLOGIES, INC.
ADDRESS:       1150 MORSE AVENUE
               SUNNYVALE, CALIFORNIA 94089

DATED AS OF:   OCTOBER 10, 2001

     THIS AMENDMENT TO LOAN DOCUMENTS is entered into between TRANSAMERICA
BUSINESS CREDIT CORPORATION, a Delaware corporation, ("TBCC") having its
principal office at 9399 West Higgins Road, Suite 600, Rosemont, Illinois 60018
and having an office at 76 Batterson Park Road, Farmington, Connecticut 06032
and Repeater Technologies, Inc. ("Borrower").

     The parties hereto agree to amend the Senior Loan and Security Agreement,
dated January 25, 1999 and the Loan and Security Agreement, dated July 8, 1999
(as amended, the Senior Loan and Security Agreement and the Loan and Security
Agreement are collectively referred to herein as "Loan Agreement"), as follows,
effective as of the date hereof. (This Amendment, the Loan Agreement, any prior
written amendments to said agreements signed by TBCC and the Borrower, and all
other written documents and agreements between TBCC and the Borrower are
referred to herein collectively as the "Loan Documents". Capitalized terms used
but not defined in this Amendment shall have the meanings set forth in the Loan
Agreement.)

     1.   CONDITION PRECEDENT

          (a) BANK AND INVESTMENT ACCOUNTS. Borrower represents and warrants
that all of its bank and other deposit accounts and all of its investment
accounts are maintained at the institutions identified on Exhibit A attached
hereto. Borrower acknowledges that the Collateral includes all of said
accounts. This Amendment is subject to receipt by Lender of the necessary
control agreements by October 29, 2001. Borrower and the institutions where
said accounts are maintained shall enter into control agreements in form and
substance reasonably satisfactory to TBCC with respect to said accounts. If
said condition precedent is not satisfied within said time period, the
provisions of Section 1(b) of this Amendment shall be of no force or effect.

          (b) WAIVER OF DEFAULT. Upon execution of this Amendment by the
Borrower and the Borrower meeting the above conditions precedent, Lender hereby
agrees to waive the Borrower's Event of Default as set forth in the letter of
June 25, 2001, a copy of which is attached hereto as Exhibit B. Notwithstanding
the above, in the event that the Borrower fails to comply with any provisions
of this Amendment, the Loan Agreement or any other Loan Document, Lender
reserves the right to reinstitute the default and make demand for payment of
all Obligations.

          (c) ACKNOWLEDGMENT OF DEFAULT. Borrower acknowledges that: (i) an
Event of Default has occurred and presently exists under the Loan Documents,
(ii) the unpaid principal balance of the Obligations is $1,856,962.27, as of
October 1, 2001, plus interest accruing after October 1, 2001, late charges,
costs and attorneys fees as set forth in the Loan Documents; (iii) the
Obligations have been validly accelerated and are immediately due and payable
and are due and owing from Borrower to TBCC in their entirety without any
defense, offset or counterclaim of any kind; (iv) pursuant to the Loan
Documents, TBCC has a valid perfected first priority security interest in all
of the Borrower's present and future accounts, general intangibles,

                                      -1-

<PAGE>
inventory, equipment, documents, instruments, and all other property and assets
of the Borrower and the proceeds and products thereof (collectively, the
"Collateral"); (v) subject to the conditional waiver of default set forth in
Section 1(b) above, TBCC has the right to take immediate possession of all of
the Collateral, pursuant to the Loan Documents and to exercise all other rights
and remedies granted to it under the Loan Documents and by law; and (vi) TBCC is
not obligated to make any additional Loans to the Borrower, under the Loan
Documents or otherwise.

     2.   PAYMENT OF LOAN BALANCE.

          (a)  BALANCE. Borrower acknowledges that the unpaid principal balance
of the Obligations under the Loan Agreement as of October 1, 2001 is
$1,856,962.27, plus interest accruing after October 1, 2001, plus late charges,
costs and attorneys fees as set forth in the Loan Documents, and the Obligations
are due and owing from Borrower to TBCC without any defense, offset or
counterclaim of any kind.

          (b)  PRINCIPAL PAYMENTS. Notwithstanding any provisions in the Loan
Agreement or the Note(s), the unpaid principal balance of the Obligations due
and owing to TBCC is hereby reamortized to five equal monthly installments of
$394,853.04 each, commencing on November 1, 2001 and continuing on the first day
of each succeeding month, until March 1, 2002 on which date the entire unpaid
principal balance of the Obligations, plus all accrued and unpaid interest,
shall be due and payable.

          (c)  INTEREST. The Obligations shall bear interest at a rate equal to
24.9% per annum, effective on the date hereof, and accrued interest shall
continue to be paid monthly in arrears on the first Business Day of each month.
If any installment of principal or interest is not paid within five days after
its due date, the Borrower agrees to pay TBCC a late charge, in addition to the
amount of such installment, in an amount equal to 5% of such installment.

     3.   GENERAL RELEASE. In consideration for TBCC entering into this
Amendment, the Borrower hereby irrevocably releases and forever discharges TBCC,
and its successors, assigns, agents, shareholders, directors, officers,
employees, agents, attorneys, parent corporations, subsidiary corporations,
affiliated corporations, affiliates, participants, and each of them, from any
and all claims, debts, liabilities, demands, obligations, costs, expenses,
actions and causes of action, of every nature and description, known and
unknown, which Borrower now has or at any time may hold, by reason of any
matter, cause or thing occurred, done, omitted or suffered to be done prior to
the date of this Agreement (collectively, the "Released Claims"). Borrower
hereby irrevocably waives the benefits of California Civil Code Section 1542
which provides: "A general release does not extend to claims which the creditor
does not know or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his settlement with
the debtor." This release is fully effective on the date hereof.

     4.   REPRESENTATIONS TRUE. Borrower represents and warrants to TBCC that
all representations and warranties set forth in the Loan Documents, as amended
hereby, are true and correct, except that any representations and warranties
made as of specified earlier date shall remain true and correct as of such
earlier date unless such representations and warranties are deemed to be have
been made as of a later date and, in such eventuality, they shall remain true
and correct as of such later date.

     5.   GENERAL PROVISIONS.

          (a) This Amendment, the Loan Agreement, and the other Loan Documents
set forth in full all of the representations and agreements of the parties with
respect to the subject

                                      -2-
<PAGE>
matter hereof and supersede all prior discussions, representations, agreements
and understandings between the parties with respect to the subject hereof.

          (b) Each of the parties acknowledges that it and its counsel have had
an adequate opportunity to make whatever investigation or inquiry they may deem
necessary or desirable in connection with the subject matter of this Agreement
prior to the execution hereof and the delivery and acceptance of the
consideration specified herein. Each party acknowledges that (i) each has been
represented by independent counsel of its own choice throughout all of the
negotiations which preceded the execution of this Agreement, (ii) each has
executed this Agreement with the consent and on the advice of such independent
legal counsel, and (iii) each has executed this Agreement voluntarily and
knowingly.

          (c) The validity, interpretation and enforcement of this agreement and
the other Loan Documents and any dispute arising out of or in connection with
this Agreement or any of the other Loan Documents, whether sounding in contract,
tort, equity or otherwise, shall be governed by the internal laws and decisions
of the State of Illinois.

          (d) This Amendment may be executed in any number of counterparts, all
of which when together shall constitute one and the same Amendment.

          (e) Except as herein expressly amended, all of the terms and
provisions of the Loan Agreement and the other Loan Documents shall continue in
full force and effect and the same are hereby ratified and confirmed.

          (f) All disputes between the Borrowers and TBCC, whether sounding in
contract, tort, equity or otherwise, shall be resolved only by state and federal
courts located in Chicago, Illinois; provided, however, that TBCC shall have the
right, to the extent permitted by applicable law, to proceed against the
Borrower or its property or the Collateral in any location selected by TBCC, or
to enforce a judgment or other court order in favor of TBCC. Borrower waives any
objection that it may have to the location of the court in which TBCC has
commenced a proceeding, including, without limitation, any objection to venue or
based on forum non conveniens. Borrower consents to service of process in any
action or proceeding brought against it by TBCC, by personal delivery, or by
mail addressed as set forth in the Loan Agreement, or by any other method
permitted by law.

          (g) MUTUAL WAIVER OF RIGHT TO JURY TRIAL. EACH PARTY TO THIS AGREEMENT
HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON,
ARISING OUT OF, OR IN ANY WAY RELATING TO: (i) THIS AGREEMENT OR ANY OF THE
OTHER LOAN DOCUMENTS; OR (ii) ANY OTHER PRESENT OR FUTURE INSTRUMENT OR
AGREEMENT BETWEEN OR AMONG THEM; OR (iii) ANY CONDUCT, ACTS OR OMISSIONS OF ANY
PARTY TO THIS AGREEMENT OR ANY OF THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS,
ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH THEM; IN EACH OF THE FOREGOING
CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.

                                      -3-
<PAGE>
BORROWER:                               TBCC:

REPEATER TECHNOLOGIES, INC.             TRANSAMERICA BUSINESS CREDIT CORPORATION

By   /s/ Timothy A. Marcotte            By      /s/ ALLEN M. SAILER
  ---------------------------------         ------------------------------------
    President or Vice President                     Allen M. Sailer
                                        Title   Vice President
By   /s/ Timothy A. Marcotte
  ---------------------------------
    Secretary or Ass't Secretary

                                      -4-

<PAGE>
                                   EXHIBIT A

         BANK ACCOUNTS, OTHER DEPOSIT ACCOUNTS AND INVESTMENT ACCOUNTS

SILICON VALLEY BANK

Cash Reserve account -
Account no - 401508870

Money Market account
Account no - 401508875

Checking account
Account no - 401508870

                                      -5-

<PAGE>

                                 EXHIBIT B

                   [TRANSAMERICA BUSINESS CREDIT LETTERHEAD]

VIA FEDERAL EXPRESS
-------------------

June 25, 2001

Elif Kuvvetli
Corporate Controller
Repeater Technologies, Inc.
1150 Morse Avenue
Sunnyvale, California 94089

Re:  Loan and Security Agreement dated July 8, 1999 executed by Repeater
Technologies, Inc. ("Repeater") and Transamerica Business Credit Corporation
("TBCC") (together with all documents and agreements executed in connection
therewith, hereinafter referred to as the "Loan Agreement"); all capitalized
terms not otherwise defined herein shall have the meanings set forth in the
Loan Agreement.

Dear Elif:

This letter shall serve as notice to Repeater Technologies, Inc. that it is in
default of its Obligations to TBCC under the Loan Agreement for the sale of
assets on or about April 1, 2001, without notice or approval, with a value of
approximately $968,000. The failure to observe this requirement of the Loan
Agreement is a default pursuant to Section 7 of the Loan Agreement.

Therefore, this letter shall serve as notice that TBCC hereby accelerates all
amounts due and owing and makes demand for all amounts due to TBCC pursuant to
the terms and conditions of the Loan Documents. The payoff amount due TBCC, as
of June 29, 2001, is $2,675,464.17.

If Repeater does not pay all such amounts in full by the close of business on
July 2, 2001, or make other arrangements satisfactory to TBCC, TBCC will seek
to enforce its rights and remedies under the Loan Documents, law and equity.

This letter is without prejudice to, and TBCC specifically reserves all of its
rights and remedies against, Repeater under the Loan Documents, law and equity.
If you would like to discuss this matter, please call me immediately.

Very truly yours,

TRANSAMERICA BUSINESS CREDIT CORPORATION

By /s/ Allen M. Sailer
---------------------------
Name: Allen M. Sailer
Title: Vice President

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