Document:

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                                                              EXHIBIT 10.57

                               SECURITY AGREEMENT
                               ------------------

          SECURITY AGREEMENT, dated as of May 5, 2000, between eFAX.com, a
Delaware corporation (the "Debtor"), and JFAX.COM, Inc., a Delaware corporation
(the "Secured Party").

          1.  Grant of Security Interest.  The Debtor, for valuable
              --------------------------
consideration, receipt of which is hereby acknowledged, hereby grants to the
Secured Party, in order to secure the payment when due, whether by acceleration
or otherwise, of the Indebtedness (as that term is defined below) a security
interest in and assignment of, and agrees and acknowledges that the Secured
Party has and shall continue to have a security interest in and assignment of,
any and all of the following property of Debtor, whenever acquired or arising
and wherever located (together, the "Collateral"):

          (i)  Any and all of Debtor's Tangibles (as that term is defined
     below);

          (ii)  Any and all of Debtor's Intangibles (as that term is defined
     below); and

          (iii)  The products, proceeds and accessions of any and all of the
     foregoing.

The term "Collateral" shall in all events include the items of collateral
listed in Schedule II hereto which reproduces in full the definition of
"Collateral" contained in the Loan Commitment, dated April 5, 2000, from
Secured Party to Debtor.

          2.  Definitions.  (a)  The term "Indebtedness" as used herein shall
              -----------
mean the following:

          (i)  Any and all obligations of Debtor with respect to the payment of
     principal and interest or otherwise to the Secured Party on the loans made
     by Secured Party (and the promissory note evidencing such loans), under
     the Term Loan Agreement, dated as of May 5, 2000, between the Debtor, as
     borrower, and the Secured Party, as lender, as the same may be amended
     from time to time, and any extension or renewals of such loans (the "Term
     Loan Agreement"); and

          (ii)  Any and all other obligations of Debtor to Secured Party,
     however created or evidenced, whether now

<PAGE>   30

     existing or hereafter arising and any extension or renewals thereof.

          (b)  The term "Intangibles" as used herein includes and shall be
deemed to mean "accounts", "instruments", "documents", "chattel paper",
"drafts", "checks", and "general intangibles" and each of them, as the
foregoing terms are defined in the Uniform Commercial Code, as in effect in the
State of California, and all other intangible assets now owned or hereafter
acquired by Debtor.

          (c)  The term "Tangibles" as used herein includes and shall be deemed
to mean "inventory" and "equipment" as defined in said Uniform Commercial Code
and all goods and tangible personal property now owned or hereafter acquired by
Debtor.

          (d)  Terms not expressly defined herein which are defined in the
Uniform Commercial Code as in effect in the State of California have the same
meaning herein as in said Code.

          (e)  Terms not expressly defined herein which are defined in the Term
Loan Agreement have the same meaning herein as in said Term Loan Agreement.

          (f)  As used in this Security Agreement and when required by the
context, each number (singular and plural) shall include all numbers, and each
gender shall include all genders; and unless the context otherwise requires,
the word "person" shall include "corporation, firm or association."

          3.  Warranties, Covenants and Agreements of Debtor.  Debtor warrants,
              ----------------------------------------------
covenants and agrees that:

          (a)  Except for the security interest granted hereby and except as
permitted by the Term Loan Agreement, Debtor is, and as to Collateral acquired
after the date hereof Debtor shall and will be at the time of acquisition the
owner and holder of the Collateral free from any adverse claim, security
interest, encumbrance, lien, charge, or other right, title or interest of any
person other than Secured Party and covenants that at all times the Collateral
will be and remain free of all such adverse claims, security interests, or
other liens or encumbrances; Debtor has full power and lawful authority to
sell, assign and transfer the Collateral to Secured Party and to grant to
Secured Party a first and prior security interest therein as herein provided;
the execution and delivery and the performance hereof are not in contravention
of any charter or by-law provision or of

                                    -2-
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any indenture, agreement or undertaking to which Debtor is a party or by which
Debtor or its property are bound; and Debtor will defend the Collateral against
all claims and demands of all persons at any time claiming the same or any
interest therein.  Any officer, agent or representative acting for or on behalf
of Debtor in connection with this Security Agreement or any aspect thereof, or
entering into or executing this Security Agreement or any financing statement
on behalf of Debtor, has been duly authorized so to do, and is fully empowered
to act for and represent Debtor in connection with this Security Agreement and
all matters related thereto or in connection therewith.

          (b)(i) Except with respect to those items listed in Schedule 3(b)
hereto, Debtor has not heretofore signed any financing statement or security
agreement which covers any of the Collateral, and no such financing statement
or security agreement is now on file in any public office.

     (ii)  As long as any amount remains unpaid on any of the Indebtedness or
any additional borrowings may be made by Debtor under any agreements entered
into in connection with the Indebtedness, except as expressly permitted by any
such agreements, (i) Debtor will not enter into or execute any security
agreement or any financing statement covering the Collateral, other than those
security agreements and financing statements in favor of Secured Party
hereunder, and further (ii) there will not be on file in any public office any
financing statement or statements (or any documents or papers filed as such)
covering the Collateral, other than financing statements in favor of Secured
Party hereunder, unless in any case the prior written consent of Secured Party
shall have been obtained.

     (iii)  Debtor authorizes Secured Party to file, in jurisdictions where
this authorization will be given effect, a financing statement signed only by
Secured Party covering the Collateral, and hereby appoints Secured Party as
Debtor's attorney-in-fact to sign and file any such financing statements
covering the Collateral.  At the request of Secured Party, Debtor will join
Secured Party in executing such documents as Secured Party may determine, from
time to time to be necessary or desirable under provisions of any applicable
Uniform Commercial Code in effect where the Collateral is located or where the
Debtor conducts business; without limiting the generality of the foregoing,
Debtor agrees to join Secured Party, at Secured Party's request, in executing
one or more financing statements in form satisfactory to Secured Party, and
Debtor will pay the costs of filing or recording the same, or of filing or
recording this

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Security Agreement, in all public offices at any time and from time to time,
whenever filing or recording of any such financing statement or of this
Security Agreement is deemed by Secured Party to be necessary or desirable.  In
connection with the foregoing, it is agreed and understood between the parties
hereto (and Secured Party is hereby authorized to carry out and implement this
agreement and understanding and Debtor hereby agrees to pay the costs thereof)
that Secured Party may, at any time or times, file as a financing statement any
counterpart, copy, or reproduction of this Security Agreement.

          (c)  Except as specifically otherwise permitted or provided herein,
Debtor's Tangibles shall remain in Debtor's possession and control at all times
at Debtor's risk of loss, and are now kept and at all times shall be kept at
the addresses and locations set forth on Schedule I hereto.  If Debtor is using
or will use all or any part of the advances made, obligations incurred, or
credit extended by Secured Party to acquire rights in, possession of, or use of
Tangibles, then Debtor agrees that, within thirty (30) days after Debtor first
receives possession thereof, such Tangibles will be brought to and kept at one
of the addresses and locations set forth on Schedule I hereto.

          (d)  Debtor will promptly notify Secured Party of any change in any
of addresses or locations set forth on Schedule I hereto and of any new
addresses or locations where Tangibles or other goods, documents, or
instruments are or may be kept, and Debtor will not remove (except in the
ordinary course of its business) the Tangibles or such goods, documents, or
instruments, or any part thereof, from the addresses and locations described
and specified above without the prior written consent of Secured Party.

          (e)  With respect to accounts, general intangibles and chattel paper
included in the Collateral, Debtor represents and warrants and agrees that
Debtor's books and records with respect to such Collateral are and will be kept
at Debtor's office located at 1378 Willow Road, Menlo Park, California 94025,
and such address is that of Debtor's chief executive offices; and Debtor
further covenants and agrees that Debtor will not change such address without
first obtaining Secured Party's prior written consent to such change and filing
such new or additional financing statements and making such other filings or
recordings as Secured Party shall deem necessary or appropriate.

          (f)  Debtor further covenants and agrees that, if any certificates of
title or similar documents are at any time issued

                                     -4-
<PAGE>   33

or outstanding with respect to any of the Collateral, Debtor will promptly
advise Secured Party thereof, and Debtor will promptly cause the interest of
Secured Party to be properly noted thereon, and if any certificates of title or
similar documents are so issued or outstanding at the time this Security
Agreement is executed by or on behalf of Debtor, then Debtor shall have caused
the interest of Secured Party so to have been properly noted at or before the
time of such execution; and Debtor will further promptly deliver to Secured
Party any such certificate of title or similar document.

          (g)  Except as expressly permitted under Section 9(c) of the Term
Loan Agreement, Debtor will not sell or offer to sell or otherwise transfer or
encumber or dispose of the Collateral or any interest therein without the prior
written consent of Secured Party.

          (h)  Debtor will not release or surrender any guaranty, suretyship
agreement or security for any of Debtor's Intangibles at any time or times
except incident to payment in full thereof.

          (i)  Debtor will take all action necessary to maintain and preserve
all security for Debtor's Intangibles at all times as valid, subsisting and
perfected as to all the property affected and covered thereby and to maintain
the priority and validity of the security for the Intangibles as against the
rights, claims and interests of all other persons.

          (j)  Notwithstanding anything to the contrary contained herein, it is
understood and agreed that if for any reason Tangibles are at any time kept or
located at locations other than those specified or which may hereafter be
consented to by Secured Party, Secured Party shall nevertheless have and retain
a security interest therein.

          4.  Special Provisions - Intangibles.  (a) After the occurrence of an
              --------------------------------
Event of Default, Secured Party shall have the right, exercisable at any time,
to take control of all proceeds of the Collateral (whether cash proceeds or
non-cash proceeds) and to notify any and all account debtors, lessees, or other
obligors to make payment on any and all accounts, leases, or obligations
directly to Secured Party; and, in such circumstances, Debtor will upon request
of Secured Party likewise notify any and all such account debtors, lessees or
other obligors to make payment directly to Secured Party.  Upon demand by
Secured Party, all proceeds of Intangibles, whether such proceeds be cash
proceeds or non-cash proceeds, received by

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Debtor shall be held in trust by Debtor for the account of Secured Party, shall
not be commingled with any other funds, accounts, monies or property of Debtor,
and shall be forthwith accounted for, paid over, transmitted and delivered to
Secured Party in the form as received by Debtor promptly upon receipt thereof
by Debtor.

          (b)  At any time after demand as hereinabove provided, and in any
event, without demand, after any of the Indebtedness shall become due, whether
by acceleration or otherwise, and at any time after the occurrence of an Event
of Default under the Term Loan Agreement and so long as such Event of Default
shall be continuing, Secured Party shall have the right in its own name or in
the name of Debtor to demand, collect, receive, receipt for, sue for, compound
and give acquittance for, any and all amounts due or to become due on the
Intangibles and to endorse the name of Debtor on all checks, drafts, commercial
paper and other instruments given in payment or part payment thereof, and in
its discretion to settle, compromise, prosecute or defend any action, claim or
proceeding with respect thereto which Secured Party may deem necessary or
appropriate to protect and preserve and realize upon the security interest and
collateral assignment of Secured Party in the Intangibles and the proceeds
thereof and security therefor including, without limitation, the right to sell,
assign, pledge, transfer and make any agreement respecting or otherwise deal
with the Intangibles.

          (c)  Returned or repossessed goods arising from or relating to any of
Debtor's Intangibles shall be and become a part of the Tangibles included in
the Collateral hereunder.

          5.  Special Provisions - Tangibles.  (a) Any of Debtor's Tangibles in
              ------------------------------
the possession of persons other than Debtor must be represented by documents
issued by the person in possession thereof, in form acceptable to Secured
Party, which documents must, upon the reasonable request of the Secured Party,
be delivered to Secured Party and must be either negotiable documents issued in
the name of Debtor or non-negotiable documents issued in the name of Secured
Party or on which the security interest of Secured Party has been noted by the
issuer thereof.  Debtor warrants that all such documents are and shall be
genuine, valid and in all respects what they purport to be and that the
Tangibles described therein will be identified or fungible portions of an
identified mass, and that said documents are and will be subject to no terms or
conditions other than is noted therein or thereon.

                                     -6-
<PAGE>   35

          (b)  At any time after any of the Indebtedness shall become due,
whether by acceleration or otherwise, and after the occurrence of an Event of
Default under the Term Loan Agreement and so long as such Event of Default
shall be continuing, all proceeds of Debtor's Tangibles, whether cash proceeds
or non-cash proceeds, and including, without limitation, proceeds that
constitute Intangibles or that are included in the Collateral as Intangibles,
and proceeds that represent the proceeds of Intangibles, shall be received and
held by Debtor in trust for Secured Party, shall not be commingled with any
other funds, accounts, monies or property of Debtor, and shall be promptly
accounted for, paid over and delivered to Secured Party in the form as received
by Debtor upon receipt thereof by Debtor.

          (c)  Debtor will promptly report to Secured Party any occurrence or
condition known to or which becomes known to Debtor having any material adverse
effect upon Debtor's Tangibles.

          6.  Cash Proceeds - General.  All cash proceeds of Debtor's Tangibles
              -----------------------
or Debtor's Intangibles shall be placed only in a Bank Account.

          7.  Further Agreements Between the Debtor and the Secured Party.  (a)
              -----------------------------------------------------------
Secured Party shall never be under any obligation to collect, attempt to
collect, protect or enforce the Collateral or any security therefor, which
Debtor agrees, and undertakes to do at Debtor's expense, but Secured Party may
do so in its discretion at any time after any of the Indebtedness shall become
due, whether by acceleration or otherwise, and after the occurrence of an Event
of Default and so long as such Event of Default shall be continuing, under the
Term Loan Agreement and at such time Secured Party shall have the right to take
any steps by judicial process or otherwise it may deem proper to effect the
collection of all or any portion of the Collateral or to protect or to enforce
the Collateral or any security therefor.  All expenses (including, without
limitation, attorneys' fees and expenses) incurred or paid by Secured Party in
connection with or incident to any such collection or attempt to collect the
Collateral or actions to protect or enforce the Collateral or any security
therefor shall be borne by Debtor or reimbursed by Debtor to Secured Party upon
demand.  The proceeds of collection of the Intangibles or other proceeds
received by Secured Party as a result of any such actions in collecting or
enforcing or protecting the Collateral shall be held by Secured Party without
liability for interest thereon and may be applied by Secured Party as Secured
Party may deem appropriate toward payment of any

                                    -7-
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of the Indebtedness secured hereby in such order or manner as Secured Party may
elect.

          (b)  In the event Secured Party shall pay any such taxes,
assessments, interests, costs, penalties or expenses incident to or in
connection with the collection of the Collateral or protection or enforcement
of the Collateral or any security therefor, Debtor, upon demand of Secured
Party, shall pay to Secured Party the full amount thereof with interest at a
rate per annum equal to the rate of interest on loans made pursuant to the Term
Loan Agreement; and so long as Secured Party shall be entitled to any such
payment, this Security Agreement shall operate as security therefor as fully
and to the same extent as it operates as security for payment of the other
Indebtedness secured hereunder, and for the enforcement of such repayment
Secured Party shall have every right and remedy provided for enforcement of
payment of the Indebtedness.

          (c)  In the event that the Collateral or any part thereof shall now
or hereafter become so related to particular real estate that an interest in it
may arise under the real estate laws of the state in which such real estate is
located, then Debtor shall immediately notify Secured Party of such fact and
take all steps and furnish all information as Secured Party shall reasonably
request for the purpose of creating or extending (as the case may be) a valid
and enforceable lien in such Collateral, including making such additional
filings or recordings, at Debtor's expense, as Secured Party shall deem
necessary or appropriate.

          (d)  In the event that the Collateral or any part thereof shall now
or hereafter be of a type or nature that perfection of a security interest in
such Collateral is not governed by the Uniform Commercial Code and/or filings
made pursuant thereto, or shall be of a type or nature such that alternative or
additional assignments, notices, acknowledgments by third-parties, filings, or
other acts or instruments are necessary or desirable in order to create, extend
or perfect a security interest or other lien with respect thereto, then Debtor
shall immediately notify Secured Party of such fact and take all steps and
furnish all information as Secured Party shall reasonably request for the
purpose of creating or extending (as the case may be) or perfecting a valid and
enforceable security interest and/or lien in such Collateral, including making
such additional filings or recordings at Debtor's expense as Secured Party
shall deem necessary or appropriate.

                                     -8-
<PAGE>   37

          8.  Remedies.  (a) After any of the Indebtedness shall become due,
              --------
whether by acceleration or otherwise, and upon the occurrence of an Event of
Default in the Term Loan Agreement, in addition to any other remedies provided
for in any of the agreements relating to any of the Indebtedness or available
under applicable law, Secured Party shall have and may exercise with reference
to the Collateral and Indebtedness any or all of the rights and remedies of a
secured party under the Uniform Commercial Code in effect in the State of
California, and as otherwise granted herein or under any other applicable law
or under any other agreement executed by Debtor, including, without limitation,
the right and power to sell, at public or private sale or sales, or otherwise
dispose of, lease or otherwise utilize the Collateral and any part or parts
thereof in any manner authorized or permitted under said Uniform Commercial
Code after default by a debtor, and to apply the proceeds thereof toward
payment of any costs and expenses and attorneys' fees and expenses thereby
incurred by Secured Party and toward payment of the Indebtedness in such order
or manner as Secured Party may elect.  Specifically and without limiting the
foregoing, Secured Party may require Debtor to assemble the Collateral or any
security therefor and make it available to Secured Party at a place to be
designated by Secured Party; and Secured Party shall have the right to take
possession of all or any part of the Collateral or any security therefor and of
all books, records, papers and documents of Debtor or in Debtor's possession or
control relating to the Collateral which are not already in Secured Party's
possession, and for such purpose may enter upon any premises upon which any of
the Collateral or any security therefor or any of said books, records, papers
and documents are situated and remove the same therefrom without any liability
for trespass or damages thereby occasioned.  To the extent permitted by law,
Debtor expressly waives any notice of sale or other disposition of the
Collateral and all other rights or remedies of Debtor or formalities prescribed
by law relative to sale or disposition of the Collateral or exercise of any
other right or remedy of Secured Party existing after default hereunder; and to
the extent any such notice is required and cannot be waived, Debtor agrees that
if such notice is given in the manner provided in Section 9 hereof at least
three (3) days before the time of the sale or disposition, such notice shall be
deemed reasonable and shall fully satisfy any requirement for giving of said
notice.

          (b)  After any of the Indebtedness shall become due, whether by
acceleration or otherwise, and at any time after the occurrence of an Event of
Default under the Term Loan Agreement

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and so long as such Event of Default shall be continuing, Secured Party is
expressly granted the right, at its option, to transfer at any time to itself
or to its nominee the Collateral, or any part thereof, and to receive the
payments, collections, monies, income, proceeds or benefits attributable or
accruing thereto and to hold the same as security for the Indebtedness or to
apply it on the principal and interest or other amounts owing on any of the
Indebtedness in such order or manner as Secured Party may elect.

          (c)  All rights to marshalling of assets of Debtor, including any
such right with respect to the Collateral, are hereby waived by Debtor.

          (d)  All recitals in any instrument of assignment or any other
instrument executed by Secured Party incident to sale, lease, transfer,
assignment or other disposition, lease or utilization of the Collateral or any
part thereof hereunder shall be full proof of the matters stated therein and no
other proof shall be requisite to establish full legal propriety of the sale or
other action taken by Secured Party or of any fact, condition or thing incident
thereto and all prerequisites of such sale or other action or of any fact,
condition or thing incident thereto shall be presumed conclusively to have been
performed or to have occurred.

          9.  General.
              -------

          (a) No Impairment, etc.  The execution and delivery of
              ------------------
this Security Agreement in no manner shall impair or affect any other security
(by endorsement or otherwise) for the payment or performance of the
Indebtedness and no security taken hereafter as security for payment or
performance of the Indebtedness shall impair in any manner or affect this
Security Agreement, all such present and future additional security to be
considered as cumulative security.  Any of the Collateral may be released from
this Security Agreement without altering, varying or diminishing in any way the
force, effect, lien, security interest, or charge of this Security Agreement as
to the Collateral not expressly released, and this Security Agreement shall
continue as a first and prior lien, security interest and charge on all of the
Collateral not expressly released until all the Indebtedness secured hereby has
been paid or performed in full.  Any future assignment of the interest of
Debtor in and to any of the Collateral shall not deprive Secured Party of the
right to sell or otherwise dispose of or utilize all or any part of the
Collateral as above provided or necessitate the sale or disposition thereof in
parcels or in severality.

                                     -10-
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          (b)  Liability for Deficiency.  This Security Agreement shall not be
               ------------------------
construed as relieving Debtor from full liability on the Indebtedness and any
and all future and other indebtedness secured hereby and for any deficiency
thereon.

          (c)  Powers of Secured Party.  In protecting, exercising or assuring
               -----------------------
its interests, rights and remedies under this Security Agreement, Secured Party
may, after the occurrence of an Event of Default, receive, open and dispose of
mail addressed to Debtor and execute, sign and endorse negotiable and other
instruments for the payment of money, documents of title and other evidences of
payment, shipment or storage for any form of Collateral or proceeds on behalf
of and in the name of Debtor.

          (d)  Subrogation.  Secured Party is hereby subrogated to all of
               -----------
Debtor's interests, rights and remedies in respect to the Collateral and all
security now or hereafter existing with respect thereto and all guaranties and
endorsements thereof and with respect thereto.

          (e)  Insurance.  Without limiting any of Debtor's obligations under
               ---------
any of the agreements entered into in connection with the Indebtedness, if any
part of Debtor's Tangibles or any security for any of the Intangibles now or
hereafter existing consists of or includes or affects tangible goods of the
type which are customarily insured by persons situated similarly to Debtor
against loss, casualty, fire damage, theft or other destruction or loss, and in
any event upon request by Secured Party, Debtor agrees (at Debtor's expense) to
take out and maintain, or to cause same to be taken out and maintained, such
insurance with respect to such goods as may reasonably be requested by Secured
Party, with Secured Party named as an assured under such insurance.  Secured
Party may act and is hereby authorized to act, as attorneys for Debtor in
obtaining, adjusting, settling and cancelling such insurance and endorsing any
drafts by insurers of such goods, but Secured Party shall not be obligated by
this provision so to act; and if, at any time or times, Debtor shall fail to
take out or maintain insurance as required under this Security Agreement or
under this Article, Secured Party may (but shall not be obligated to), without
waiving such default by Debtor, take out or maintain such insurance, and all
premiums and other costs paid by Secured Party incident thereto shall be
repayable upon demand by Debtor to Secured Party, with interest thereon from
the date expended by Secured Party until repaid at the rate equal to the rate
of interest on loans made pursuant to the Term Loan Agreement, and shall be and
become a part of the Indebtedness secured hereby.

                                     -11-
<PAGE>   40

          (f)  Notices.  Any communications, notice or demand to be given
               -------
hereunder shall be duly given if in writing (including telegraphic
communications) and delivered, mailed or telegraphed:

               if to Debtor, at:

               eFAX.com
               1378 Willow Road
               Menlo Park, California  94025
               Attention:
               Facsimile No.:

               if to Secured Party, at:

               JFAX.COM, Inc.
               6922 Hollywood Boulevard, Suite 900
               Hollywood, California 90028
               Attention:  Richard Ressler and
                           Nicholas V. Morosoff
               Facsimile No.:  (323) 860-9515

or, as to any party, to such other address as shall be designated by such party
in a prior written notice to each other party similarly given.

          (g)  Deposits; Set-off.  Any deposit, deposit account, certificate of
               -----------------
indebtedness or deposit or other sums at any time credited by or due from the
holder of the Indebtedness to Debtor and any securities or other property of
Debtor in the possession of the holder of the Indebtedness may at all times be
held and treated as additional and cumulative collateral security for the
payment of the Indebtedness, and Debtor grants Secured Party a security
interest in all such deposits, deposit accounts, certificates, sums, securities
and other properties as additional and cumulative security for payment of the
Indebtedness.  The holder of the Indebtedness may, at any time, to the full
extent permitted by law, after the Indebtedness shall become due, whether by
acceleration or otherwise, or at any time after the occurrence of an Event of
Default under the Term Loan Agreement and so long as such Event of Default
shall be continuing, apply or set-off such deposits, deposit accounts,
certificates, securities, sums or properties against the Indebtedness at any
time in the care of Debtor.

           (h)  No Duty to Preserve Collateral.  Secured Party shall not be
                ------------------------------
obligated to take any steps necessary to preserve

                                     -12-
<PAGE>   41

any rights in the Collateral or in any security therefor against any other
party, which obligation Debtor hereby assumes.

          (i)  No Waiver.  No delay or omission on the part of Secured Party in
               ---------
exercising any right hereunder shall operate as a waiver of any such right or
any other right.  A waiver on any one or more occasions shall not be construed
as a bar to or waiver of any right or remedy on any future occasion.  The
remedies of Secured Party hereunder are cumulative, and the exercise of any one
or more of the remedies provided for herein shall not be construed as an
election or as a waiver of any of the other remedies of Secured Party provided
for herein or existing by law or otherwise.

          (j)  Assignment.  All rights of Secured Party hereunder shall inure
               ----------
to the benefit of its successors and assigns; and all obligations of Debtor
shall bind its successors and assigns.

          (k)  Governing Law.  This Security Agreement shall be governed by and
               -------------
construed in accordance with the laws of the State of California, except as
required by mandatory provisions of law and except to the extent that the
validity or perfection of any of the security interests hereunder, or remedies
hereunder, are governed by the laws of a jurisdiction other than the State of
California.

                                     -13-
<PAGE>   42

          IN WITNESS WHEREOF, the Debtor has duly executed and delivered this
Security Agreement as of the date first above written.

                             eFAX.com

                             By
                               ------------------------------

                                     -14-
<PAGE>   43

                                                                (Schedule I)

                             Locations of Tangibles
                             ----------------------

eFax.com Headquarters
1378 Willow Road
Menlo Park, CA 94025

eFax.com Oregon
1865 NW 169th Place, Suite 120
Beaverton, OR 97006

eFax.com Santa Barbara
5385 Hollister Avenue
Santa Barbara, CA 93111

eFax.com Ireland
Unit A10
Cookstown Business Centre
Cookstown Industrial Estate
Dublin 24
Ireland

eFax.com UK
Building A Trinity Court
Wokingham Road, Bracknell
Berks RG42 1PL

<PAGE>     44

                                                            (Schedule II)

                               Security for Loan
                               -----------------

          The Loan shall be secured by a first lien on and perfected first
security interest in any and all of the assets of Debtor, in each case now
owned or hereafter acquired, including without limitation, all equipment,
inventory, merchandise, raw materials, parts, supplies, contract rights,
general intangibles, goodwill, Trademarks, Patents, domain names, leases,
license agreements, franchise agreements, blueprints, drawings, purchase
orders, customer information, customer lists, route lists, infringements,
claims, Debtor Software (as hereinafter defined), computer discs, computer
tapes, literature, reports, catalogs, design rights, income tax refunds,
payments of insurance, rights to payment of any kind, accounts, royalties,
license rights, DID Numbers and all other forms of obligations owing to Debtor
arising out of the sale or lease of goods, licensing of technology or rendering
of services by Debtor, documents, cash, deposit accounts, securities,
securities entitlements, securities accounts, investment property, financial
assets, letters of credit, certificates of deposit, instruments, chattel paper,
bank accounts and other deposit accounts; Copyrights and like protections and
derivative work thereof, all trade secret rights, including all rights to
unpatented inventions, know-how, operating manuals, license rights and
agreements and confidential information, all mask work or similar rights
available for the protection of semiconductor chips, all claims for damages by
way of any past, present and future infringement of any of the foregoing and
any and all intellectual property rights in any of the foregoing, all other
tangible and intangible personal property and fixtures of Debtor, including,
without limitation, all proceeds, products, offspring, accessions, rents,
profits, income, benefits, substitution and replacement of and to any of the
property of Debtor described herein (including, without limitation, any
proceeds of insurance thereon and all causes of action, claims and warranties
now or hereafter held by Debtor in respect of any of the listed items) and, to
the extent related  to any property so described or such proceeds, products and
accessions, all books, correspondence, credit files, records, invoices and
other papers, including, without limitation, all tapes, cards, computer runs
and other papers and documents (collectively, the  "Collateral").

                                     -2-
<PAGE>   45

     The following terms, as used herein, shall have the meaning set forth
following such term below:

     "Debtor Software" shall mean any and all computer software and/or programs
developed and owned by the Debtor or licensed by the Debtor from third parties
and used in the business and operations of the Debtor, including all
Maintenance Modifications and Upgrades thereto and Derivative Works thereof, as
well as Documentations relating to any of the foregoing, and shall further
include any and all Code (including Source Code and Object Code), as well as
any and all other intellectual property rights, constituting or relating to any
of the foregoing.

     "Maintenance Modifications" means modifications, Upgrades or revisions
made by the Debtor to the Debtor Software that correct errors or support new
releases of operating systems.

     "Upgrades" means revised versions of the Debtor Software that result in
(1) substantial performance, structural or functional improvements or
additions, including the substantial redesign or replacement of any part of the
Source Code or (2) a change in the version number (including any changes to the
number to the right of the decimal point) of the Debtor Software.

     "Derivative Works" means a work that is based upon one or more preexisting
works, such as a revision, modification, translation, abridgement,
condensation, expansion, or any other form in which such preexisting works may
be recast, transformed, or adapted, and that, if prepared without authorization
of the owner of the copyright in such preexisting work, would constitute a
copyright infringement.

     "Code" means computer programming code.  Code shall include both Object
Code and Source Code.  Code shall include any and all Maintenance Modifications
and Upgrades thereto.

     "Source Code" means Code in human readable programming languages, plus all
related development documents.

     "Object Code" means Code in machine-readable form.

     "Documentation" means user manuals and other written materials that relate
to the Debtor Software.  Documentation shall include Maintenance Modifications
and Upgrades thereto.

                                     -3-
<PAGE>   46

                                                               (Schedule 3(b))

                    Items for Which A Financing Statement
                    -------------------------------------
                    Or Security Agreement Has Been Signed
                    -------------------------------------

None.

                                     -4-
<PAGE>   47<PAGE>   48

                                                              EXHIBIT 10.58

                              TERM LOAN AGREEMENT

          TERM LOAN AGREEMENT, dated May 5, 2000 by and between eFAX.com, a
Delaware corporation (the "Company"), and JFAX.COM, Inc., a Delaware
corporation (the "Lender").

          1.   The Loan.  The Lender agrees to lend to the Company and, subject
               --------
to the following sentence, the Company agrees to borrow from the Lender, the
amount of $ 5,000,000, to be advanced to the Company in three equal
installments (each, an "Installment") on the date hereof (provided that
$916,667 of the first installment will be deferred until all conditions of
lending are met) and on June 1, 2000 and June 30, 2000 (each, an "Installment
Funding Date").  The Company shall have the option in its sole discretion (a)
not to draw down any or all Installments and (b) to drawn down any particular
Installment at a date later than the applicable Installment Funding Date but
prior to the Maturity Date (each, a "Delayed Installment Funding Date"),
provided that the Company gives the Lender at least forty-eight (48) hours'
--------
written notice prior to an Installment Funding Date of its election not to draw
down any such Installment on such Installment Funding Date and at least forty-
eight (48) hours' written notice prior to any Delayed Installment Funding Date.

          2.   The Note.  The obligation to repay the loan shall be evidenced
               --------
by the Company's promissory note (the "Note") in substantially the form of
Exhibit A attached hereto , dated the date of the first Installment, payable to
the order of the Lender in full on the later of (a) August 31, 2000 and (b) the
date which is sixty (60) days following the date, if any, upon which the Lender
terminates its discussions concerning a merger with the Company (other than
following a breach by the Company of its obligations under the letter of
intent, dated as of April 5, 2000, between the Company and the Lender (the
"Letter of Intent")) prior to the execution of a definitive merger agreement or
upon which any such definitive merger agreement, once executed and delivered by
the Company and the Lender, is terminated as a result of a failure to obtain
approval of the Lender's stockholders or as a result of a material breach by
the Lender thereunder.  The principal balance with respect to each Installment
of the loan shall bear interest on such principal balance from the Installment
Funding Date or Delayed Installment Funding Date, as the case may be, with
respect to such Installment until the entire principal balance with respect to
such Installment has been repaid in full, payable in arrears on the Maturity
Date, at a rate per annum (based on a 365 day year

<PAGE>   49

for the actual number of days elapsed) equal to the lesser of 13% and the
maximum allowable under applicable law.  Interest shall be calculated based on
a 360 day year, but for the actual number of days elapsed in each calendar
month.  The Lender may record the amount of each Installment and the amount of
prepayments, if any, of the loan and similar information on a schedule attached
to or otherwise made a part of the Note.  Information so recorded by the Lender
shall be conclusive and binding on the Company in the absence of manifest
error.  No failure to enter or delay in entering such records shall impair the
Company's obligations under the Note or this Agreement.

          3.   The Security Documents.  The obligations of the Company under
               ----------------------
the loan shall be secured by a first priority security interest in the
Collateral described in and according to the terms of the Security Agreement,
dated the date hereof (the "Security Agreement"), between the Company and
Lender and the other security agreements encumbering the Collateral necessary
to establish and maintain the security interest for the benefit of the Lender
under this Agreement, including, without limitation, (a) a collateral
assignment of trademarks (security agreement) granting to the Lender a first
priority security interest in the Trademarks (as hereinafter defined), (b) a
collateral assignment of patents (security agreement) granting to the Lender a
first priority security interest in the Patents (as hereinafter defined), (c) a
collateral assignment of copyrights (security agreement) granting to the Lender
a first priority security interest in the Copyrights(as hereinafter defined),
(d) an escrow of an electronic copy (CD-ROM) of all Source Code (as defined in
Schedule II to the Security Agreement) owned by the Company and identified on
Schedule 6(v) hereto constituting or relating to the Debtor Software (as
defined in Schedule II to the Security Agreement) and of the Company's customer
lists and data base, in each case to be delivered to an escrow agent selected
by Lender and reasonably satisfactory to the Company (the "Escrow Agent") and
held pursuant to an escrow agreement selected by Lender and reasonably
satisfactory to the Company, (e) a letter in the form attached hereto as
Exhibit B from each of the local exchange or other carriers providing DID
Numbers (as hereinafter defined) to the Company,(f) waivers and/or estoppel
certificates, if applicable, from landlords and co-locators and (g) such
letters to and representations from the banks at which the Company or one of
its subsidiaries maintains Bank Accounts (as hereinafter defined) as are
reasonably satisfactory to the Lender ((a) through (g), together with the
Security Agreement, the "Security Documents").

                                   -2-
<PAGE>   50

          4.   Warrant.  On April 5, 2000, the Company granted a warrant to the
               -------
Lender (the "Warrant") to purchase 250,000 shares (the "Warrant Shares") of
common stock, par value $0.01 per share (the "Common Stock"), to the Lender at
an exercise price equal to $4.4375 per share, subject to adjustment.  On or
prior to the Installment Funding Date or Delayed Installment Funding Date, as
the case may be, with respect to the first Installment of the loan, the Company
shall deliver to the Lender an instrument representing the Warrant in the form
attached hereto as Exhibit C.  The parties further agree that the warrant
referred to in Section 3 of the Letter of Intent, when and if granted, will be
reflected in a warrant agreement in the form attached hereto as Exhibit C.

          5.   Optional Prepayment.  The Company shall have the right on not
               -------------------
less than five business days' written notice to the Lender to prepay the loan
in whole at any time or in part from time to time without premium or penalty
but with accrued interest on the principal being paid to the date of
prepayment.

          6.   Representations.  The Company represents and warrants to the
               ---------------
Lender the following, the truth and accuracy of which are a continuing
condition of the making of the Installments hereunder:

          (a)   Good Standing and Power.  Other than DocuMagix, Inc., each of
                -----------------------
the Company and each of its subsidiaries is a corporation, duly organized and
existing, in good standing, under the laws of the jurisdiction of its
incorporation, and each has the corporate power to own its property and to
carry on its business as now being conducted and is duly qualified to do
business and is in good standing in each jurisdiction in which the character of
the properties owned or leased by it therein or in which the transaction of its
business makes such qualification necessary, except where the failure to be so
qualified could not reasonably be expected to have a material adverse effect on
the business, results of operations, financial condition, assets or prospects
of the Company and its subsidiaries, taken as a whole (a "Material Adverse
Effect").

          (b)   Corporate Authority.  The Company has full corporate power and
                -------------------
authority to execute and deliver this Agreement, the Note, the Security
Documents and the Warrant, to incur and perform the obligations provided for
herein and in the Note, and to perform its obligations hereunder and under the
Note, the Security Documents and the Warrant, all of which have been duly
authorized by all proper and necessary corporate

                                     -3-
<PAGE>   51

action.  No consent or approval of stockholders is required in connection with
the execution and delivery by the Company of this Agreement, the Note, the
Security Documents or the Warrant or the performance by the Company of its
obligations hereunder or thereunder.

          (c)   Authorizations.  No authorizations, consents, approvals,
                --------------
registrations, exemptions and licenses with or from any governmental
authorities are necessary in connection with the execution and delivery by the
Company of this Agreement, the Note, the Security Documents or the Warrant and
the performance by the Company of its obligations hereunder and thereunder.

          (d)   Binding Agreement.  This Agreement, the Note and the Security
                -----------------
Documents constitute the valid and legally binding obligations of the Company
enforceable in accordance with their terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization and other laws of general applicability
relating to or affecting creditors' rights and to general equity principles.

          (e)   Subsidiaries.
                ------------

          (i)   The Company has the following subsidiaries and no others:
DocuMagix, Inc., JetFax Deutschland GmbH and efax.com limited (UK).

          (ii)   DocuMagix, Inc. has no liabilities, individually or in the
aggregate, in excess of $50,000.  A description of the assets of DocuMagix,
Inc. is set forth in Schedule 6(e) hereto.

          (f)   Litigation.  There are no proceedings or investigations pending
                ----------
or, to the knowledge of the Company, threatened before any court or arbitrator
or before or by any governmental authority except as disclosed in the SEC
Documents (as hereinafter defined) and which, individually or in the aggregate,
if determined adversely to the interests of the Company or a subsidiary, could
reasonably be expected to have a Material Adverse Effect.

          (g)   No Conflicts.  The execution, delivery and performance by the
                ------------
Company of this Agreement, the Note, the Security Documents and the Warrant,
and the consummation by the Company of its obligations hereunder and
thereunder, do not and will not (i) conflict with or result in a breach of any
provision of law, statute, rule or regulation applicable to the Company or any
of its subsidiaries or any judgment, order, writ, injunction,

                                     -4-
<PAGE>   52

license or permit applicable to the Company or any of its subsidiaries or any
of their respective properties, (ii) conflict with any provision of the
certificate of incorporation or bylaws or similar organization documents of the
Company or any of its subsidiaries or (iii) conflict with, violate or
constitute a breach of or a default under any material agreement or contract to
which the Company or any of its subsidiaries is a party or by which the Company
or any of its subsidiaries or any of their respective assets is bound.

          (h)   Financial Reports and SEC Documents; Material Adverse Effect.
                ------------------------------------------------------------
The Company's Annual Reports on Form 10-K for the years ended December 31, 1999
and 1998, and all other reports, registration statements, definitive proxy
statements or information statements filed or to be filed by it or any of its
subsidiaries subsequent to December 31, 1998 under the Securities Act of 1933,
as amended (the "Security Act"), or under Section 13(a), 13(c), 14 or 15(d) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or under
the securities regulations of the Securities and Exchange Commission (the
"SEC"), in the form filed or to be filed (collectively, the "SEC Documents")
with the SEC as of the date filed, (A) complied or will comply in all material
respects as to form with the applicable requirements under the Securities Act
or the Exchange Act, as the case may be, and (B) did not and will not contain
any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading; and
each of the balance sheets contained in or incorporated by reference into any
such SEC Document (including the related notes and schedules thereto) fairly
presents, or will fairly present, in all material respects, the financial
position of Company and its subsidiaries as of its date, and each of the
statements of income and changes in shareholders' equity and cash flows or
equivalent statements in such SEC Documents (including any related notes and
schedules thereto) fairly presents, or will fairly present, in all material
respects, the results of operations, changes in shareholders' equity and
changes in cash flows, as the case may be, of the Company and its subsidiaries
for the periods to which they relate, in each case in accordance with generally
accepted accounting principles consistently applied during the periods
involved, except in each case as may be noted therein, subject to normal year-
end audit adjustments in the case of unaudited statements.  Except as set forth
in Schedule 6(h) hereto, there has been no material adverse change in the
business, results of operations, financial condition, assets or prospects of
the

                                     -5-
<PAGE>   53

Company and its subsidiaries, taken as a whole, since the date of the Company's
balance sheet dated December 31, 1999.

          (i)   Capitalization.  As of the date hereof, the authorized capital
                --------------
stock of the Company consists of 35,000,000 shares of Common Stock, of which no
more than 13,500,000 shares were outstanding as of the date hereof (more
specifically, 13,186,775 shares were outstanding at May 2, 2000), and 5,000,000
shares of Preferred Stock, par value $0.01 per share, of which 1,500 shares of
Series B Convertible Preferred Stock were outstanding as of the date hereof.
As of the date hereof, no shares of Company Common Stock were held in treasury
by the Company or otherwise owned by the Company or its subsidiaries.  The
outstanding shares of Common Stock have been duly authorized and are validly
issued and outstanding, fully paid and nonassessable, and subject to no
preemptive rights (and were not issued in violation of any preemptive rights);
provided that the holders of the Series B Convertible Preferred Stock (the
"Series B Preferred") have certain rights of first refusal and rights to
participate in certain equity financings.  As of the date hereof, there are no
shares of Common Stock authorized and reserved for issuance, the Company does
not have any options, rights or warrants issued or outstanding with respect to
the Common Stock, and the Company does not have any commitment to authorize,
issue or sell any Common Stock or options, rights or warrants, except pursuant
to this Agreement or the Warrant, and except for (i) the warrants to be issued
to Lender pursuant to the Letter of Intent; (ii) shares of Common Stock into
which the Seris B Preferred (and any subsequently issued Series C Convertible
Preferred Stock) is convertible; (iii) the warrants listed on Schedule 6(i)
hereto (the "Existing Warrants"); and (iv) any options ("Company Stock
Options") to acquire shares of Common Stock issued under the 1989 Stock Option
Plan, the 1995 Stock Plan or the 1997 Director Stock Option Plan (collectively,
the "Stock Option Plans").  As of the date hereof, there are 3,737,646 shares
(reflects 796,398 options available for grant and 2,941,248 options currently
outstanding)  of Common Stock issuable and reserved for issuance upon exercise
of Company Stock Options and 645,092 shares of Common Stock issuable and
reserved for issuance upon exercise of the Existing Warrants.  Upon exercise of
the Warrant or any portion thereof and payment by the Lender of the exercise
price with respect thereto, the Warrant Shares issued upon such exercise shall
be duly authorized and validly issued and outstanding, fully paid and
nonassessable, and subject to no preemptive rights (and not issued in violation
of any preemptive rights).

                                     -6-
<PAGE>   54

          (j)   Taxes.  The Company and each of its subsidiaries has filed or
                -----
caused to be filed all tax returns required to be filed and has paid all taxes
shown to be due and payable on said returns or on any assessment made against
it or any of its property and all other taxes, assessments, fees, liabilities
or other charges imposed on it or any of its property by any governmental
authority, except for any taxes, assessments, fees, liabilities or other
charges which are being contested in good faith and for which reserves which
are adequate under generally accepted accounting principles have been
established.

          (k)   Use of Proceeds.  The proceeds of the loan will be used by the
                ---------------
Company for general corporate purposes to fund the on-going operations of the
business of the Company, and not for any dividends or distributions with
respect to the capital stock of the Company.

          (l)   Title to Properties; Possession Under Leases.  The Company and
                --------------------------------------------
its subsidiaries have good and marketable title to, or valid leasehold
interests in, all properties and assets reflected on the consolidated balance
sheet of the Company as of December 31, 1999, except for such immaterial
properties and assets as have been disposed of in the ordinary course of
business and except for minor defects in title that do not interfere with the
ability of the Company or any of such subsidiaries to conduct its business as
now conducted.  All such assets and properties are free and clear of all
mortgages, pledges, liens, charges, security interests and other encumbrances,
other than as set forth on Schedule 6(o).  Schedule 6(l) contains a true and
correct list of all leases by the Company or any of its subsidiaries of any
interest in real property, and sets forth, with respect to each such lease, the
date of such lease, each and every amendment to such lease, and the name, phone
number and address of the landlord and sublandlord, if any, with respect to
such lease.  Each of the Leases is binding and enforceable against the Company
or one of its subsidiaries and, to the knowledge of the Company, against the
other party thereto and is in full force and effect.  The real property
leasehold interests of the Company and its subsidiaries are not subject to any
mortgages, pledges, liens, charges, security interests or other encumbrances,
other than those contemplated by this Agreement and the Security Agreements.

          (m)   ERISA.  (i) Neither the Company nor any of its subsidiaries has
                -----
engaged in a transaction with respect to any employee benefit plan which,
assuming the taxable period of such transaction expired as of the date hereof,
could subject the

                                     -7-
<PAGE>   55

Company or any of its subsidiaries to a tax or penalty imposed by either
Section 4975 of the Internal Revenue Code of 1986, as amended (the "Code"), or
Section 502(i) of the Employee Retirement Income Security Act of 1934, as
amended ("ERISA"), in an amount that could have a Material Adverse Effect.

          (ii)   No employee benefit plan had an accumulated funding
deficiency, whether or not waived, as of the last day of the most recent fiscal
year of such employee benefit plan ended prior to the date hereof.

          (iii) No liability under Sections 4062, 4063 or 4064 of ERISA has
been or is expected by the Company to be incurred by the Company or any of its
subsidiaries with respect to any single employer plan in an amount that would
have a Material Adverse Effect.  Neither the Company nor any of its
subsidiaries has incurred or expects to incur any withdrawal liability with
respect to any employee benefit plan which is a multiemployer plan in an amount
which could have a Material Adverse Effect.

          (iv)   As used in this Section, (A) "accumulated funding deficiency"
shall have the meaning assigned to such term in Section 412 of the Code and
Section 302 of ERISA; (B) "employee benefit plan" and "multiemployer plan"
shall have the respective meanings assigned to such terms in Section 3 of
ERISA; (C) "taxable period" shall have the meaning assigned to such term in
Section 4975 of the Code; and (D) "withdrawal liability" shall have the meaning
assigned to such term in Part 1 of Subtitle E of Title IV of ERISA.

          (n)   Not an Investment Company.  The Company is not an "investment
                -------------------------
company" or a company "controlled" by an "investment company" within the
meaning of the Investment Company Act of 1940, as amended.

          (o)   The Security Agreement.  The provisions of the Security
                ----------------------
Documents will be effective to create in favor of the Lender a valid, binding
and enforceable security interest or lien in all right, title and interest of
the Company in the Collateral, and shall, upon recording or filing with the
proper state and county authorities, constitute a fully perfected first and
prior security interest, lien or mortgage, in all right, title and interest of
the Company in such Collateral, superior in right to any liens, except for the
liens relating to equipment leases as set forth in Schedule 6(o) hereto.

                                     -8-
<PAGE>   56

          (p)   Environmental Protection.  To the Company's knowledge, based
                -------------
upon reasonable investigation, all real property owned or leased by the Company
or any of the Company's subsidiaries is free of contamination from any
substance that could result in the incurrence of material liabilities, or that
are currently identified or listed as hazardous or toxic pursuant to the
Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.
9601, et seq., or any other environmental laws, or any other substance which
has in the past or could at any time in the future cause or constitute a
health, safety or environmental hazard to any person or property, including,
without limitation, asbestos in any building, petroleum products, PCBs,
pesticides, or radioactive materials.  To the Company's knowledge, based on
reasonable investigation, neither the Company nor any of the Company's
subsidiaries has caused or suffered to occur any release of any waste,
pollutant, hazardous substance, toxic substance, hazardous waste, special
waste, petroleum or petroleum-derived substance or waste, or any constituent of
any such substance or waste, including any such substance regulated under any
environmental law ("Contaminant") into the environment or any other conditions
that could result in the incurrence of material liabilities or any material
violations of any environmental laws.  To the Company's knowledge, based on
reasonable investigation, neither the Company nor any of the Company's
subsidiaries has caused or suffered to occur any condition on any of the
Company's property that could give rise to the imposition of any lien under any
environmental laws.  To the Company's knowledge, based on reasonable
investigation, neither the Company nor any of the Company's subsidiaries is
engaged in any manufacturing or any other operations, other than the use of
petroleum products for vehicles, that require the use, handling,
transportation, storage or disposal of any Contaminant, where such operations
require permits or are otherwise regulated pursuant to the environmental laws.

          (q)   No Material Misstatements.  No information, report, financial
                -------------------------
statement, exhibit or schedule furnished by or on behalf of the Company to the
Lender in connection with the negotiation of this Agreement, the Note, the
Security Documents and the Warrant, or included therein or delivered pursuant
thereto, upon which Lender reasonably relied in making or agreeing to make the
Installments, contained or contains any material misstatement of fact or
omitted or omits to state any material fact necessary to make the statements
therein not misleading.

                                     -9-
<PAGE>   57

          (r)   Location of Assets.  All of the assets of the Company are
                ------------------
located in Menlo Park, California and Santa Barbara, California, except for
those located in Dublin, Ireland described in Schedule 6(r) hereto.

          (s)   Equipment.  Schedule 6(s) hereto sets forth a true, correct and
                ---------
complete list and description of all equipment owned or leased by the Company.

          (t)   Compliance with Laws.  The Company has acquired its assets and
                ----------
conducted its business in compliance in all material respects with all
applicable laws, rules, ordinances and regulations and judgments, decrees,
orders, awards and governmental and non-governmental permits and licenses to
which the Company is subject.

          (u)   Proprietary Rights and Intellectual Property.  Schedule 6(u)
                -----------
sets forth a true, correct and complete list and description (including without
limitation, the jurisdiction in which registered) of all registered and common
law trademarks (including service marks), tradenames, trade styles, and
trademark applications (collectively, "Trademarks"), copyright rights,
registrations and applications, (collectively, "Copyrights"), patents and
patent applications (collectively, "Patents", and, together with the Trademarks
and Copyrights, the "Proprietary Rights") used in connection with the Company's
business.  The Company has taken reasonable steps to establish and protect its
interest in and to both the Proprietary Rights and all other know-how, trade
secrets, processes, shop rights, technologies, discoveries, unpatented
inventions, formulae and procedures (collectively, "Intellectual Property")
used in the business and operations of the Company, and there are no material
limitations or prohibitions on the current or intended use of the Proprietary
Rights or the Intellectual Property.  None of the Proprietary Rights or
Intellectual Property has been assigned, transferred or licensed to any third
party.  The validity or enforceability of the patents, trademarks, tradenames,
copyrights and applications and registrations thereof constituting the
Proprietary Rights has not been challenged by others, nor is there any pending
or threatened litigation involving any of the Proprietary Rights or
Intellectual Property.  The Company's use of the Proprietary Rights and
Intellectual Property does not constitute an infringement of the rights of any
other person, other than any infringement that could not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect.

                                     -10-
<PAGE>   58

          (v)   Computer Software.  Schedule 6(v) hereto sets forth a true,
                -----------------
correct and complete list and description of all computer software and/or
programs developed and owned by the Company or licensed by the Company from
third parties and used in and material to the business and operations of the
Company.  A true, correct and complete copy of the Source Code for all such
software and/or programs and an electronic copy of the Company's customer lists
and data base have been delivered to the Escrow Agent.

          (w)   Phone Numbers.  Schedule 6(w) sets forth a true, correct and
                -------------
complete list of phone numbers and direct-inward-dialing numbers, identified by
the local exchange or other carrier that provisions such numbers to the
Company, which have been assigned by the Company to its customers or which the
Company currently has in inventory for future assignment to its customers
(collectively, "DID Numbers").

          (x)   Bank Accounts.  Schedule 6(x) sets forth the account numbers
                -------------
and location of all bank accounts and other deposit accounts (the "Bank
Accounts") of the Company and each of its subsidiaries.

          7.   Conditions of Lending.
               ---------------------

          (a)   The obligation of the Lender to make the first Installment on
the applicable Installment Funding Date or Delayed Installment Funding Date, as
the case may be, is subject to the following conditions precedent:

          (i)   Evidence of Corporate Action.  The Lender shall have received
                ----------------------------
copies of all corporate action taken by the Company to authorize this
Agreement, the Note, the Security Documents and the Warrant and the borrowing
hereunder, certified the date of such first Installment, and such other papers
as the Lender shall reasonably require.

          (ii)   Opinion of Company Counsel.  The Lender shall have received a
                 --------------------------
favorable written opinion of counsel for the Company, dated the date of the
First Installment, in substantially the form of Exhibit D attached hereto.

          (iii) Security Documents; Security Arrangements.  The Company shall
                -----------------------------------------
have executed and delivered to the Lender the Security Documents granting to
the Lender a first prior perfected security interest in the Collateral together
with (A) acknowledgment copies of Financing Statements (Form UCC-1)

                                     -11-
<PAGE>   59

duly filed under the Uniform Commercial Code of all jurisdictions as may be
necessary or, in the opinion of the Lender, advisable to perfect the security
interests created by the Security Documents, (B) certified copies of Requests
for Information (Form UCC-11) or equivalent reports, dated prior to the first
Installment hereunder, listing the Financing Statements referred to in (A)
above and all other financing statements which name the Company as debtor and
which are filed in all jurisdictions referred to in (A) above, and (C) evidence
of the completion of all other recordings and filings and such other actions
necessary or, in the opinion of the Lender, advisable to perfect the security
interests created by the Security Documents.

          (iv)   Insurance.  The Company shall have delivered to the Lender,
                 ---------
consistent with the requirements of subparagraph 8(c), evidence satisfactory to
it that the Collateral is adequately insured.

          (v)   Warrant.  The Company shall have executed and delivered to the
                -------
Lender the Warrant.

          (b)   The obligation of the Lender to make any Installment on the
loan on the applicable Installment Funding Date or Delayed Installment Funding
Date, as the case may be, is also subject to the following conditions
precedent:

          (i)   UCC/Litigation/Tax Lien Search.  Lender's counsel shall have
                ------------------------------
obtained at the Company's expense certified copies of Requests for Information
(Form UCC-11) listing all effective Universal Commercial Code financing
statements which name the Company as debtor and the results of such tax lien,
judgment and litigation searches, against such parties as the Lender may
reasonably require showing no liens and encumbrances and that the Company is
not subject to any pending material litigation, bankruptcy or material tax
liens.

          (ii)   Compliance.  At the time of any Installment Funding Date or
                 ----------
Delayed Installment Funding Date, as the case may be, (A) the Company shall
have complied and shall then be in compliance with all the terms, covenants and
conditions of this Agreement, the Note and the Security Documents which are
binding upon it, (B) there shall have occurred no event of default as defined
in Section 10 and no event which, with the giving of notice or the lapse of
time, or both, would constitute such an event of default, (C) the
representations and warranties contained in Section 6 shall be true with the
same effect as though such representations and warranties had been made at the

                                     -12-
<PAGE>   60

time of such Installment Funding Date or Delayed Installment Funding Date, as
the case may be, and (D) the Lender shall have received a certificate dated the
date of such Installment Funding Date or Delayed Installment Funding Date, as
the case may be, and signed by the chief executive officer or the chief
financial officer of the Company to the foregoing effect.

          (iii) Litigation.  There shall not be pending or threatened any
                ----------
action or proceeding before any court or administrative agency relating to the
transactions contemplated by this Agreement, the Note, the Security Documents
or the Warrant which, in the reasonable judgment of the Lender, could
materially impair the ability of the Company to perform its obligations
hereunder or thereunder.

          (iv)   Other Documents.  The Lender shall have received such other
               ---------------
documents as the Lender may reasonably require.

          8.   Affirmative Covenants.  So long as the Company may borrow
               ---------------------
hereunder and until payment in full of the Note and performance of all other
obligations of the Company hereunder, the Company will:

          (a)   Working Capital.  Maintain an excess of consolidated current
                ---------------
assets over consolidated current liabilities of the Company and its
subsidiaries of not less than  ($3.25 million), i.e., negative working capital
of $3.25 million.  "Consolidated current assets" and "consolidated current
liabilities" are to be determined as to both classification of terms and
amounts in accordance with generally accepted accounting principles maintained
by the Company in the preparation of the financial statements referred to in
subparagraph 6(h); provided, however, that the cash balance, on the asset side,
and the unpaid loan balance hereunder, on the liability side, shall not be
counted for such purpose.

          (b)   Taxes.  Pay and discharge, and cause each of its subsidiaries
                -----
to pay and discharge, all taxes, assessments and governmental charges upon it,
its income and its properties prior to the date on which penalties are attached
thereto, unless and to the extent only that such taxes, assessments and
governmental charges shall be contested in good faith and by appropriate
proceedings by the Company or such subsidiary, as the case may be.

          (c)   Insurance.  Maintain, and cause each of its subsidiaries to
                ---------
maintain, insurance with responsible insurance

                                     -13-
<PAGE>   61

companies against such risks, on such properties and in such amounts as is
customarily maintained by similar businesses; and file, and cause each of its
subsidiaries to file, with the Lender upon its request a detailed list of the
insurance then in effect and stating the names of the insurance companies, the
amounts and rates of the insurance, dates of the expiration thereof and the
properties and risks covered thereby.

          (d)   Corporate Existence.  Maintain its corporate existence in good
                -------------------
standing, and qualify and remain qualified to do business as a foreign
corporation in each jurisdiction in which the character of the properties owned
or leased by it therein or in which the transaction of its business makes such
qualification necessary, and subject to the provisions of subparagraph 9(c),
cause each of its subsidiaries (other than DocuMagix, Inc.) so to do.

          (e)   Authorizations.  Obtain, make and keep in full force and effect
                --------------
all authorizations from and registrations with governmental authorities that
may be required for the validity or enforceability against the Company of this
Agreement, the Note, the Security Documents and the Warrant.

          (f)   Maintenance of Records.  For the Company and each of its
                ----------------------
subsidiaries, (i) keep proper books of record and account in which full, true
and correct entries will be made of all dealings or transactions of or in
relation to its business and affairs; (ii) set up on its books reserves with
respect to all taxes, assessments, charges, levies and claims; and (iii) on a
current basis, set up on its books, from its earnings, appropriate reserves
against doubtful accounts receivable, advances and investments and all other
proper reserves (including, without limitation by reason of enumeration,
reserves for premiums, if any, due on required prepayments and reserves for
depreciation, obsolescence, or amortization of properties), which should be set
aside from such earnings in connection with its business.  All determinations
pursuant to this subsection shall be made in accordance with, or as required
by, generally accepted accounting principles consistently applied in the
opinion of such independent public accountants as shall then be regularly
engaged by the Company.

          (g)   Maintenance of Property, Etc.  (i) Except as otherwise
                -----------------------
permitted herein, and except for parts and obsolete inventory items to be sold
in connection with the service and consumables business (the proceeds of which
will be deposited in the Asset Sales Account in accordance with Section 9(c)),

                                     -14-
<PAGE>   62

maintain, keep and preserve and cause each of its subsidiaries to maintain,
keep and preserve all of its material properties in good repair, working order
and condition and from time to time make all necessary and proper repairs,
renewals, replacements, and improvements thereto, and (ii) maintain, preserve
and protect and cause each of its subsidiaries to maintain, preserve and
protect all franchises, licenses, copyrights, patents and trademarks material
to its business, so that the business carried on in connection therewith may be
properly and advantageously conducted at all times.

          (h)   Conduct of Business.  (i) Engage in as its principal business
                -------------------
the unified messaging business, (ii) except as set forth in Schedule 8(h)
hereto, preserve, renew and keep in full force and effect all its material
contracts, (iii) preserve, renew and maintain in full force and effect all its
franchises and licenses necessary or desirable in the normal conduct of its
business as now conducted, (iv) comply with all of the terms of all instruments
which evidence, secure or govern the indebtedness of the Company and its
subsidiaries and comply in all material respects with all rules and regulations
of all governmental authorities, and (v) incur liabilities and otherwise
conduct its business only in the ordinary course of business consistent with
past practice.

          (i)   Notification of Events of Default and Adverse Developments.
                ----------------------------------------------------------
Promptly notify the Lender upon the discovery by the Company of the occurrence
of (i) any event of default, or any event which with the giving of notice or
lapse of time, or both, would constitute an event of default, hereunder; (ii)
any event, development or circumstance whereby the financial statements most
recently furnished to the Lender fail in any material respect to present
fairly, in accordance with generally accepted accounting principles, the
financial condition and operating results of the Company and its subsidiaries
as of the date of such financial statements; (iii) any litigation or
proceedings that are instituted or threatened (to the knowledge of the Company)
against the Company or its subsidiaries or any of their respective assets; (iv)
each and every event which would be an event or default (or an event which with
the giving of notice or lapse of time would be an event of default) under any
indebtedness of the Company or any of its subsidiaries, such notice to include
the names and addresses of the holders of such indebtedness and the amount
thereof; and (v) any other development in the business or affairs of the
Company or its subsidiaries if the effect thereof is likely to have a Material

                                     -15-
<PAGE>   63

Adverse Effect; in each case describing the nature thereof and the action the
Company proposes to take with respect thereto.

          (j)   Environmental Matters.  (i) Comply, and cause its subsidiaries
                ---------------------
to comply, in all material respects with all applicable environmental laws,
(ii) notify the Lender promptly after becoming aware thereof of any release,
adverse environmental condition or environmental claim in connection with the
Company's or any subsidiaries' facilities, and (iii) promptly forward to the
Lender a copy of any order, notice, permit, application, or any other
communication or report received by Company or any of its subsidiaries in
connection with any such matters as they may affect such premises, if material.

          (k)   Reporting Obligations.  As soon as practicable, but in any
                ---------------------
event within fifteen (15) days after the end of each month prior to such time
as the principal balance of the Note is repaid in full, the Company shall
provide to the Lender unaudited monthly consolidated financial statements of
the Company and its subsidiaries for such month prepared in accordance with
generally acceptable accounting principles, together with a certificate by the
chief financial officer of the Company that the information contained in such
financial statements fairly presents in all material respects the financial
condition of the Company and its subsidiaries on the date thereof (subject to
year-end adjustments).  The Company shall from time to time provide to the
Lender such other financial data and information as the Lender may reasonably
request.

          (l)   Option Exercises.  The Company will deposit into the Asset
                ----------------
Sales Account (as hereinafter defined) any proceeds received by the Company
upon exercise of Company Stock Options, Existing Warrants, the Warrant, or any
other warrants or stock options of the Company.

          (m)   Phone Numbers.  Upon contracting with a new local exchange or
                -------------
other carrier for the provision of DID Numbers, the Company will, within ten
(10) days of such contract, notify the Lender and provide to the Lender the
letter described in Section 3(e) of this Agreement from such carrier.

          9.   Negative Covenants.  So long as the Company may borrow hereunder
               ------------------
and until payment in full of the Note and performance of all other obligations
of the Company hereunder, the Company will not:

                                     -16-
<PAGE>   64

          (a)   Borrowing.  Create, incur, assume or suffer to exist any
                ---------
liability for borrowed money, or permit any subsidiary so to do, except
indebtedness to the Lender.  "Borrowed money" means any obligation to repay
money, any indebtedness evidenced by notes, bonds, debentures or similar
obligations, any obligation under a conditional sale or other title retention
agreement and the net aggregate rentals under any lease which under generally
accepted accounting principles would be capitalized on the books of the Company
or which is the substantial equivalent of the financing of the property so
leased.

          (b)   Mortgages and Pledges.  Create, incur, assume or suffer to
                ---------------------
exist any mortgage, pledge, lien or other encumbrance of any kind (including
the charge upon property purchased under conditional sale or other title
retention agreements) upon, or any security interest in, any of its property or
assets, whether now owned or hereafter acquired, or permit any subsidiary so to
do, except (i) liens for taxes not delinquent or being contested in good faith
and by appropriate proceedings, (ii) deposits or pledges to secure obligations
under workmen's compensation, social security or similar laws, or under
unemployment insurance, (iii) deposits or pledges to secure bids, tenders,
contracts (other than contracts for the payment of money), leases, statutory
obligations, surety and appeal bonds and other obligations of like nature
arising in the ordinary course of business, (iv) mechanic's, workmen's,
materialmen's or other like liens arising in the ordinary course of business
with respect to obligations which are not due or which are being contested in
good faith, (v) existing liens as set forth on Schedule 9(b) hereto, and (vi)
purchase money security interests on assets acquired in the ordinary course of
business securing indebtedness otherwise permitted to be incurred hereunder,
incurred in connection with the acquisition of such assets, which liens cover
only the assets so acquired.

          (c)   Merger, Acquisition or Sale of Assets.  Enter into any merger
                -------------------------------------
or consolidation or acquire all or substantially all of the assets of any
person, firm, joint venture, corporation or other entity, or sell, lease, or
otherwise dispose of any of its assets except in the ordinary course of its
business, or permit any subsidiary so to do, except that a wholly-owned
subsidiary may be merged or consolidated with one or more other wholly-owned
subsidiaries or into the Company and except that the Company shall have the
right to dispose of "non-core" assets having an aggregate value not to exceed
$100,000 (absent the approval of Lender, such approval not to be unreasonably
withheld), all the

                                     -17-
<PAGE>   65

proceeds of which shall be deposited by the Company into a segregated account
(the "Asset Sales Account") which shall form part of the Collateral under the
Security Documents and shall not be used to fund the Company's operating
expenses.

          (d)   Loans.  Make loans or advances to any person, firm, joint
                -----
venture, corporation or other entity, or permit any subsidiary so to do.

          (e)   Contingent Liabilities.  Assume, guarantee, endorse,
                ----------------------
contingently agree to purchase or otherwise become liable upon the obligation
of any person, firm, joint venture, corporation or other entity (other than in
connection with a merger permitted by subparagraph 9(c)), or permit any
subsidiary so to do.

          (f)   Investments.  Purchase or acquire the obligations or stock of,
                -----------
or any other interest in, any person, firm, joint venture, corporation or other
entity, or permit any subsidiary so to do, except (i) direct obligations of the
United States of America and (ii) certificates of time deposit issued by a
commercial Lender having a combined capital and surplus of at least $50,000,000
and chartered under the laws of the United States or one of the States thereof.

          (g)   Capital Expenditures.  Make any capital expenditures, or permit
                --------------------
any subsidiary so to do, in any one fiscal quarter exceeding in the aggregate
for the Company and its subsidiaries $250,000.

          (h)   Dividends and Purchase of Stock.  Declare any dividends (other
                -------------------------------
than dividends payable in capital stock of the Company) on any shares of any
class of its capital stock, or apply any of its property or assets to the
purchase, redemption or other retirement of, or set apart any sum for the
payment of any dividends on, or for the purchase, redemption or other
retirement of, or make any other distribution by reduction of capital or
otherwise in respect of, any shares of any class of capital stock of the
Company, or permit any subsidiary to purchase or acquire any shares of any
class of capital stock of the Company.

          (i)   Stock of Subsidiaries.  Sell or otherwise dispose of any shares
                ---------------------
of capital stock of any subsidiary or permit any subsidiary to issue any
additional shares of its capital stock.

                                     -18-
<PAGE>   65

          (j)   Cash Disbursements.  During any period of two (2) consecutive
                ------------------
calendar months (beginning May 1, 2000), make cash expenditures (net of any
Excluded Professional Fees and Severance Payments (as hereinafter defined) and
without credit being given for cash received from asset sales) of greater than
$2,500,000.  As used herein, "Excluded Professional Fees and Severance
Payments" shall mean Borrower's cash expenditures for professional fees and
severance payments, which expenditures shall not exceed $1,000,000 in the
aggregate absent approval of the Lender (such approval not to be unreasonably
withheld).

          10.   Events of Default.  If one or more of the following events of
                -----------------
default (each, an "Event of Default") shall occur:

                (a)   Default shall be made in the payment of principal of or
          interest upon the Note when due and payable, whether at maturity, by
          notice of intention to prepay or otherwise;

                (b)   Default shall be made in the due observance or
          performance of any term, covenant or agreement contained in
          subparagraph 8(a) or paragraph 9 hereof;

                (c)   Default shall be made in the due observance or
          performance of any other term, covenant or agreement contained in
          this Agreement, and such default shall have continued unremedied for
          a period of 20 days after the Company becomes aware of such default;

                (d)   Any representation or warranty made by the Company herein
          or any representation made in any certificate, report or opinion
          delivered in connection herewith shall prove to have been misleading
          in any material respect when made or deemed to be made;

                (e)   Any obligation of the Company (other than its obligations
          hereunder) or of any subsidiary for the payment of borrowed money (as
          defined in subparagraph 9(a)) is not paid when due or becomes or is
          declared to be due and payable prior to the expressed maturity
          thereof, or there shall have occurred an event which, with the giving
          of notice or lapse of time, or both, would

                                     -19-
<PAGE>

          cause any such obligation to become, or allow any such obligation to
          be declared to be, due and payable;

                (f)   The Company or any subsidiary makes an assignment for the
          benefit of creditors, files a petition in bankruptcy, is adjudicated
          insolvent or bankrupt, petitions or applies to any tribunal for any
          receiver of or any trustee for the Company or any subsidiary or any
          substantial part of its property, commences any proceeding relating
          to the Company or any subsidiary under any reorganization,
          arrangement, readjustment of debt, dissolution or liquidation law or
          statute of any jurisdiction, whether now or hereafter in effect, or
          there is commenced against the Company or any subsidiary any such
          proceeding which remains undismissed for a period of 30 days, or the
          Company or any subsidiary by any act indicates its consent to,
          approval of or acquiescence in any such proceeding or the appointment
          of any receiver of or any trustee for the Company or any subsidiary
          or any substantial part of its property, or suffers any such
          receivership or trusteeship to continue undischarged for a period of
          30 days; or

                (g)   One or more judgments against the Company or any
          subsidiary or attachments against its property, which in the
          aggregate exceed $50,000, or the operation or result of which could
          be to interfere materially and adversely with the conduct of the
          business of the Company or any subsidiary, remain unpaid, unstayed on
          appeal, undischarged, unbonded or undismissed for a period of 20
          days;

then, upon the happening of any of the foregoing events of default which shall
be continuing, the Note shall become and be immediately due and payable upon
declaration to that effect delivered by the Lender to the Company; provided
that, upon the happening of any event specified in subparagraph 9(f), the Note
shall be immediately due and payable without declaration or other notice to the
Company.  The Company expressly waives any presentment, demand, protest or
other notice of any kind.

          11.   Miscellaneous.
                -------------

                                     -20-
<PAGE>   66

          (a)   Expenses.  The Company agrees to pay all out-of-pocket expenses
                --------
of the Lender (including the reasonable fees and expenses of its counsel) in
connection with and any amendments or supplements to this Agreement and the
enforcement of any provision of this Agreement or any amendment or supplement
and the collection of the Note.

          (b)   Cumulative Rights and No Waiver.  Each and every right granted
                -------------------------------
to the Lender hereunder or under any other document delivered hereunder or in
connection herewith, or allowed it by law or equity, shall be cumulative and
may be exercised from time to time.  No failure on the part of the Lender to
exercise, and no delay in exercising, any right shall operate as a waiver
thereof, nor shall any single or partial exercise by the Lender of any right
preclude any other or future exercise thereof or the exercise of any other
right.

          (c)   Notices.  Any communication, notice or demand to be given
                -------
hereunder or on the Note issued hereunder shall be duly given if delivered or
mailed by certified or registered mail as follows:

          If to the Company, at
          eFAX.com
          1378 Willow Road
          Menlo Park, California  94025
          Attention: Todd Kenck
          Facsimile No: (650) 326-6003

          If to the Lender, at
          JFAX.COM, Inc.
          6922 Hollywood Boulevard, Suite 900
          Hollywood, California 90028
          Attention:  Richard Ressler and
                      Nicholas V. Morosoff
          Facsimile No:  (310) 734-1833

          (d)   Applicable Law.  This Agreement and the rights and obligations
                --------------
of the parties hereunder shall be governed by the laws of the State of
California, both in interpretation and performance.

                                     -21-
<PAGE>   67

          IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of the date first above written.

                             eFAX.com

                             By
                               ------------------------------

                             JFAX.COM, Inc.

                             By
                               ------------------------------

                                     -22-
<PAGE>   68

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