Document:

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                                                                   EXHIBIT 10.18

                              AMENDED AND RESTATED
                      REVOLVING LOAN AND SECURITY AGREEMENT

          This AMENDED AND RESTATED REVOLVING LOAN AND SECURITY AGREEMENT is
entered into as of January 31, 2000 by and between COMERICA BANK-CALIFORNIA
("Bank") and WOOD ALLIANCE, S.P. INC. d/b/a WOOD ASSOCIATES, a California
corporation ("Borrower").

                                    RECITALS

          A. Borrower wishes to obtain credit from time to time from Bank, and
Bank desires to extend credit to Borrower. This Agreement sets forth the terms
on which Bank will advance credit to Borrower, and Borrower will repay the
amounts owing to Bank.

          B. This Agreement amends, restates, and supersedes the Loan and
Security Agreement (Accounts and Inventory) dated July 7, 1997, (the "Loan
Agreement") by and between Bank and Borrower, as amended by the First
Modification to Loan & Security Agreement dated November 21,1997, as further
amended by the Second Modification to Loan & Security Agreement dated July
8,1998, as further amended by the Third Modification to Loan & Security
Agreement dated August 12, 1998, as further amended by the Fourth Modification
to Loan & Security Agreement dated October 15, 1998.

                                    AGREEMENT

          The parties agree as follows:

                                   Article I
                          DEFINITIONS AND CONSTRUCTION

          1.1 Definitions. As used in this Agreement, the following terms shall
              -----------
have the following definitions:

          "Accounts" means all presently existing and hereafter arising
accounts, contract rights, and all other forms of obligations owing to Borrower
arising out of the sale or lease of goods (including, without limitation, the
licensing of software and other technology) or the rendering of services by
Borrower, whether or not earned by performance, and any and all credit
insurance, guaranties, and other security therefor, as well as all merchandise
returned to or reclaimed by Borrower and Borrower's Books relating to any of the
foregoing.

          "Advance" or "Advances" means an Advance under the Revolving Facility.

          "Affiliate" means any Person, including any Person who is a director,
officer, partner or manager of such Person: (a) which directly or indirectly
controls, or is controlled by, or is under common control with, the Borrower or
a Subsidiary; (b) which directly or indirectly

                                       -1-

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beneficially owns or holds five percent (5%) or more of any class of voting
stock of the Borrower or any Subsidiary; or (c) five percent (5%) or more of the
voting stock of which is directly or indirectly beneficially owned or held by
the Borrower or a Subsidiary. The term "control" means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

          "Agreement" means this Amended and Restated Revolving Loan and
Security Agreement, as amended, supplemented, or modified from time to time.

          "Bank Expenses" means all reasonable costs or expenses (including
reasonable attorneys' fees and expenses) incurred in connection with enforcing
or defending the Loan Documents (including fees and expenses of appeal), whether
or not suit is brought.

          "Base Rate" means the variable rate of interest, per annum, most
recently announced by Bank, as its "Base Rate," whether or not such announced
rate is the lowest rate available from Bank.

          "Base Advance" means any Advance when and to the extent that the
interest rate therefor is determined by a reference to the Base Rate.

          "Borrower's Books" means all of Borrower's books and records including
ledgers, records indicating, summarizing, or evidencing Borrower's properties or
assets or liabilities, all information relating to Borrower's business
operations or financial condition, and all computer programs, disc or tape
files, printouts, runs, or other computer prepared information, and the
equipment containing such information.

          "Borrowing Base" has the meaning set forth in Section 2.1(a) hereof.

          "Business Day" means any day that is not a Saturday, Sunday, or other
day on which banks in the State of California are authorized or required to
close.

          "Capital Lease" means all leases which have been or should be
capitalized on the books of the lessee in accordance with GAAP.

          "Closing Date" means the date of this Agreement.

          "Code" means the Internal Revenue Code of 1986, as amended from time
to time, and the regulations and published interpretations thereof.

          "COF Advance" means any Advance when and to the extent that the
interest rate therefor is determined by a reference to the Bank's Cost of Funds.

          "Collateral" means the property described on Exhibit A attached
                                                       ---------
hereto.

          "Committed Line" means Ten Million and 00/100 Dollars
($10,000,000.00).

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          "Contingent Obligation" means, as applied to any Person, any direct or
indirect liability, contingent or otherwise, of that Person with respect to (i)
any indebtedness, lease, dividend, letter of credit or other obligation of
another, including, without limitation, any such obligation directly or
indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by
that Person, or in respect of which that Person is otherwise directly or
indirectly liable; (ii) any obligations with respect to undrawn letters of
credit issued for the account of that Person; and (iii) all obligations arising
under any interest rate, currency or commodity swap agreement, interest rate cap
agreement, interest rate collar agreement, or other agreement or arrangement
designated to protect a Person against fluctuation in interest rates, currency
exchange rates or commodity prices; provided, however, that the term "Contingent
Obligation" shall not include endorsements for collection or deposit in the
ordinary course of business. The amount of any Contingent Obligation shall be
deemed to be an amount equal to the stated or determined amount of the primary
obligation in respect of which such Contingent Obligation is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect
thereof as determined by such Person in good faith; provided, however, that such
amount shall not in any event exceed the maximum amount of the obligations under
the guarantee or other support arrangement.

          "Current Assets" means, as of any applicable date of determination,
all cash, non-affiliated customer receivables, United States government
securities, claims against the United States government, and Inventory.

          "Current Liabilities" means, as of any applicable date, (i) all
liabilities of a person that should be classified as current in accordance with
GAAP, including without limitation any portion of the principal of the
Indebtedness classified as current, plus (ii) to the extent not otherwise
included, all liabilities of the Borrower to any of its affiliates whether
classified as current in accordance with GAAP.

          "Daily Balance" means the amount of the Obligations owed at the end of
a given day.

          "Effective Tangible Net Worth" means net worth as determined in
accordance with GAAP consistently applied, increased by Subordinated Debt, if
any, and decreased by the following: patents, licenses, goodwill, subscription
lists, organization expenses, trade receivables converted to notes, money due
from affiliates (including officers, directors, subsidiaries and commonly held
companies).

          "Eligible Accounts" means those Accounts that arise in the ordinary
course of Borrower's business that comply with all of Borrower's representations
and warranties to Bank set forth in Section 6.4; provided, that standards of
eligibility may be fixed and revised from time to time by Bank in Bank's
reasonable judgment. Unless otherwise agreed to by Bank, Eligible Accounts shall
not include the following: (a) Accounts which remain uncollected for more than
ninety (90) days from invoice date.; (b) Accounts due from an account debtor
that has suffered a business failure or the termination of its existence, or as
to which a dissolution, insolvency or bankruptcy proceeding has been commenced,
any assignment for the benefit of creditors has been made, or a trustee,
receiver or conservator has been appointed for all or any part of the assets of

                                       -3-

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such account debtor; (c) Accounts due from an account debtor who is an Affiliate
of Borrower or affiliated with Borrower in any manner, including, without
limitation, as stockholder, owner, officer, director, agent or employee; (d)
Accounts with respect to which payment is or may be conditional; (e) Accounts
with respect to which the account debtor is not a resident or citizen of,
located in, or subject to service of process in, the United States, and which
are not either (i) covered by credit insurance in form and amount, and by an
insurer, satisfactory to Bank, (ii) supported by one or more letters of credit
that are assignable by their terms and have been delivered to Bank in an amount,
of a tenor, and issued by a financial institution, acceptable to Bank; or (iii)
that Bank approves on a case by case basis; (f) Accounts due from the United
States of America, including, without limitation, any instrumentality, division,
agency, body or department thereof; (g) Accounts commonly known as "bill and
hold" or a similar arrangement; (h) Accounts due from an account debtor as to
which twenty five percent (25%) percent or more of the aggregate dollar amount
of all outstanding Accounts owing from such account debtor remain uncollected
for more than ninety (90) days from invoice date; (i) That portion of Accounts
due from an account debtor which is in excess of twenty five percent (25%)
percent of Borrower's aggregate dollar amount of all outstanding Eligible
Accounts; (j) Accounts as to which Borrower is or may become liable to the
account debtor for any reason; (k) Accounts which are not free of all liens,
encumbrances, charges, rights and interest of any kind, except in favor of Bank;
(1) Accounts which are supported or represented by a promissory note, post-dated
check or letter of credit unless such instrument is actually delivered to Bank;
(m) Accounts that are payable in other than United States Dollars; (n) Accounts
which are unsuitable as collateral, as determined by Bank in the exercise of its
reasonable sole discretion.

          "Eligible Inventory" means Inventory of Borrower held for sale or
lease in the ordinary course of Borrower's business which is: (a) Inventory in
which Bank has a first, priority, perfected security interest; (b) not subject
to a security interest, lien or other encumbrance in favor of any other Person;
(c) of good and merchantable quality free from defects; (d) owned and in the
lawful possession of Borrower; and (e) otherwise acceptable to Bank in its
reasonable sole discretion.

          "Equipment" means all present and future machinery, equipment, tenant
improvements, furniture, fixtures, vehicles, tools, parts and attachments in
which Borrower has any interest.

          "ERISA" means the Employment Retirement Income Security Act of 1974,
as amended, and the regulations thereunder.

          "Event of Default" has the meaning set forth in Article X.

          "Fixed Charges" means and includes for any applicable period of
determination, the sum, without duplication, of (a) all interest paid or payable
during such period by a person on debt of such person, plus (b) all payments of
principal or other sums paid or payable during such period by such person with
respect to debt of such person having a final maturity more than one year from
the date of creation of such debt, plus (c) all debt discount and expense
amortized or required to be amortized during such period by such person, plus
(d) the maximum amount of all rents and other payments paid or required to be
paid by such person during such

                                       -4-

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period under any lease or other contract or arrangement providing for use of
real or personal property in respect of which such person is obligated as a
lessee, use or obligor, plus (e) all dividends and other distributions paid or
payable by such person or otherwise accumulating during such period on any
capital stock of such person, plus (f) all loans or other advances made by such
person during such period to any Affiliate of such person.

          "Funding Date" means the date that amounts are advanced by Bank under
the Revolving Facility.

          "GAAP" means generally accepted accounting principles as in effect
from time to time in the United States of America, applied on a consistent basis
over the time period in question as to classification of items and amounts.

          "Guarantors" means Monte D. Wood, an individual and James D. Childers,
an individual.

          "Indebtedness" means (a) all indebtedness for borrowed money or the
deferred purchase price of property or services, including without limitation
reimbursement and other obligations with respect to surety bonds and letters of
credit; (b) all obligations evidenced by notes, bonds, debentures or similar
instruments; (c) obligations as lessee under Capital Leases; (d) current
liabilities in respect of unfunded vested benefits under Plans covered by ERISA;
and (e) all Contingent Obligations.

          "Insolvency Proceeding" means any proceeding commenced by or against
any person or entity under any provision of the United States Bankruptcy Code,
as amended, or under any other bankruptcy or insolvency law, including
assignments for the benefit of creditors, formal or informal moratoria,
compositions, extension generally with its creditors, or proceedings seeking
reorganization, arrangement, or other relief.

          "Interest Period" means (a) with respect to any COF Advance, the
period commencing on the Funding Date and ending, as the Borrower may select,
pursuant to Section 2.3, on the numerically corresponding day thirty (30), sixty
(60), ninety (90) or one hundred twenty (120) days from the Funding Date;
provided that all of the foregoing provisions relating to Interest Periods are
subject to the following: (a) no Interest Period may extend beyond the
Termination Date; and (b) if an Interest Period would end on a day that is not a
Business Day, such Interest Period shall be extended to the next Business Day.

          "Inventory" means all present and future inventory in which Borrower
has any interest, including merchandise, raw materials, parts, supplies, packing
and shipping materials, work in process and finished products intended for sale
or lease or to be furnished under a contract of service, of every kind and
description now or at any time hereafter owned by or in the custody or
possession, actual or constructive, of Borrower, including such inventory as is
temporarily out of its custody or possession or in transit and including any
returns upon any accounts or other proceeds, including insurance proceeds,
resulting from the sale or disposition of any of the foregoing and any documents
of title representing any of the above, and Borrower's Books relating to any of
the foregoing.

                                       -5-

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          "Investment" means any beneficial ownership of (including stock,
partnership interest or other securities) any Person, or any loan, advance or
capital contribution to any Person.

          "Letters of Credit" mean commercial or standby letters of credit
issued by Bank from time to time under the Revolving Facility.

          "Lien" means any mortgage, deed of trust, pledge, security interest,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
other), or preference, priority, or other security agreement or preferential
arrangement, charge, or encumbrance of any kind or nature whatsoever (including,
without limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing, and the filing of any financing statement under the UCC or comparable
law of any jurisdiction to evidence any of the foregoing).

          "Loan Documents" means, collectively, this Agreement, any note or
notes executed by Borrower, and any other agreement entered into between
Borrower and Bank in connection with this Agreement, all as amended or extended
from time to time.

          "Material Adverse Effect" means a material adverse effect on (i) the
business operations or condition (financial or otherwise) of Borrower and its
Subsidiaries taken as a whole or (ii) the ability of Borrower to repay the
Obligations or otherwise perform its obligations under the Loan Documents.

          "Negotiable Collateral" means all of Borrower's present and future
letters of credit of which it is a beneficiary, notes, drafts, instruments,
securities, documents of title, and chattel paper, and Borrower's Books relating
to any of the foregoing.

          "Obligations" means all debt, principal, interest, Bank Expenses and
other amounts owed to Bank by Borrower pursuant to this Agreement or any other
agreement, whether absolute or contingent, due or to become due, now existing or
hereafter arising, including any interest that accrues after the commencement of
an Insolvency Proceeding and including any debt, liability, or obligation owing
from Borrower to others that Bank may have obtained by assignment or otherwise.

          "Periodic Payments" means all installments or similar recurring
payments that Borrower may now or hereafter become obligated to pay to Bank
pursuant to the terms and provisions of any instrument, or agreement now or
hereafter in existence between Borrower and Bank.

          "Permitted Indebtedness" means: (a) Indebtedness of Borrower in favor
of Bank arising under this Agreement or any other Loan Document; (b)
Indebtedness existing on the Closing Date and disclosed in the Schedule; (c)
Subordinated Debt; and (d) Indebtedness to trade creditors incurred in the
ordinary course of business.

          "Permitted Investment" means: (a) Investments existing on the Closing
Date disclosed in Schedule 9.7; (b) marketable direct obligations issued or
unconditionally guaranteed by

                                       -6-

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the United States of America or any agency or any State thereof maturing within
one (1) year from the date of acquisition thereof, (c) commercial paper maturing
no more than one (1) year from the date of creation thereof and currently having
the highest rating obtainable from either Standard & Poor's Corporation or
Moody's Investors Service, Inc., and (d) certificates of deposit maturing no
more than one (1) year from the date of investment therein issued by Bank.

          "Permitted Liens" means the following: (a) Any Liens existing on the
Closing Date and disclosed in Exhibit B or arising under this Agreement or the
                              ---------
other Loan Documents; (b) Liens for taxes, fees, assessments or other
governmental charges or levies, either not delinquent or being contested in good
faith by appropriate proceedings, provided the same have no priority over any of
Bank's security interests; (c) Liens (i) upon or in any equipment acquired or
held by Borrower or any of its Subsidiaries to secure the purchase price of such
equipment or indebtedness incurred solely for the purpose of financing the
acquisition of such equipment, or (ii) existing on such equipment at the time of
its acquisition, provided that the Lien is confined solely to the property so
acquired and improvements thereon, and the proceeds of such equipment; (d) Liens
incurred in connection with the extension, renewal or refinancing of the
indebtedness secured by Liens of the type described in clauses (a) through (c)
above, provided that any extension, renewal or replacement Lien shall be limited
       --------
to the property encumbered by the existing Lien and the principal amount of the
indebtedness being extended, renewed or refinanced does not increase.

          "Person" means any individual, sole proprietorship, partnership,
limited liability company, joint venture, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint
stock company, estate, entity or governmental agency.

          "Quick Assets" means, at any date as of which the amount thereof shall
be determined, the consolidated cash, cash-equivalents, accounts receivable and
investments, with maturities not to exceed ninety (90) days, of Borrower
determined in accordance with GAAP.

          "Responsible Officer" means each of the Chief Executive Officer, the
Chief Financial Officer, the Executive Vice President, the Vice President of
Finance, and the Controller of Borrower.

          "Revolving Facility" means the facility under which Borrower may
request Bank to issue cash advances, as specified in Section 2.1 hereof.

          "Subordinated Debt" means any debt incurred by Borrower that is
subordinated to the debt owing by Borrower to Bank on terms acceptable to Bank
(and identified as being such by Borrower and Bank).

          "Subsidiary" means any corporation or partnership in which (i) any
general partnership interest or (ii) more than 50% of the stock of which by the
terms thereof ordinary voting power to elect the Board of Directors, managers or
trustees of the entity shall, at the time as of which any determination is being
made, be owned by Borrower, either directly or through an Affiliate.

                                       -7-

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          "Tangible Net Worth Ratio" means the ratio of (a) Borrowers' Total
Liabilities on a consolidated basis, to (b) Borrowers' Effective Tangible Net
Worth on a consolidated basis.

          "Termination Date" means the earlier of (a) acceleration of the
Obligations for any reason under the terms of this Agreement; or (b) the date on
which Bank elects to terminate this Agreement pursuant to the terms herein.

          "Total Liabilities" means at any date as of which the amount thereof
shall be determined, all obligations that should, in accordance with GAAP be
classified as liabilities on the consolidated balance sheet of Borrower,
including in any event all Indebtedness, but specifically excluding Subordinated
Debt.

          "UCC" means the Uniform Commercial Code as in effect on the date
hereof in the State of California.

          "Value" means, as determined by Bank in good faith, with respect to
Inventory, the lower of (a) cost computed on a first in first out basis in
accordance with GAAP, or (b) market value.

          "Year 2000 Compliant" has the meaning set forth in Section 6.16.

          1.2 Accounting Terms. All accounting terms not specifically defined
              ----------------
herein shall be construed in accordance with GAAP and all calculations made
hereunder shall be made in accordance with GAAP. When used herein, the term
"financial statements" shall include the notes and schedules thereto.

                                   Article II
                               REVOLVING FACILITY

          2.1 Revolving Facility. Subject to and upon the terms and conditions
              ------------------
of this Agreement, Bank agrees to make Advances to Borrower (pursuant to Section
2.1 hereof) and issue Letters of Credit (pursuant to Section 2.2 hereof) under a
revolving line of credit (the "Revolving Facility") from time to time in amounts
requested by Borrower up to an aggregate outstanding principal amount equal to
the lesser of: (i) the Committed Line; or (ii) the Borrowing Base. Subject to
the terms and conditions of this Agreement, Borrower may borrow and reborrow
under this Section 2.1, provided that each COF Advance shall be in an amount not
less than Five Hundred Thousand and 00/100 Dollars ($500,000.00).

              (a) Borrowing Base. Borrowing Base shall mean an amount equal to
                  --------------
Eighty percent (80%) of Eligible Accounts; plus Five Hundred Thousand and 00/100
                                           ----
Dollars ($500,000.00).

                  (i) Reduction of Lending Formula. Bank may, in its discretion,
                      ----------------------------
from time to time, upon not less than ten (10) days prior notice to Borrower,
(i) reduce the lending formula with respect to Eligible Accounts to the extent
that Bank determines in good faith that: (A)

                                       -8-

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the dilution with respect to the Accounts for any period (based on the ratio of
(1) the aggregate amount of reductions in Accounts other than as a result of
payments in cash to (2) the aggregate amount of total sales) has increased in
any material respect or may be reasonably anticipated to increase in any
material respect above historical levels, or (B) the general creditworthiness of
account debtors has declined. In determining whether to reduce the lending
formula(s), Bank may consider events, conditions, contingencies or risks which
are also considered in determining Eligible Accounts.

          2.2 Letters of Credit.
              -----------------

              (a) Issuance. Subject to, and upon the terms and conditions
                  --------
contained herein, at the request of Borrower, Bank agrees from time to time
during the term of this Agreement to issue Letters of Credit for the account of
Borrower containing terms and conditions acceptable to Bank, provided however
that no commercial Letter of Credit shall have an expiration date beyond one
hundred twenty (120) days. Each draft paid by Bank under a Letter of Credit
shall be deemed an Advance under the Revolving Facility and shall be repaid by
Borrower in accordance with the terms and conditions of this Agreement
applicable to such Advances; provided however, that if the Revolving Facility is
not available, for any reason whatsoever, at the time any draft is paid by Bank,
or if Advances are not available under the Revolving Facility at such time due
to any limitation on borrowings set forth herein, then the full amount of such
draft shall be immediately due and payable, together with interest thereon, from
the date such amount is paid by Bank to the date such amount is fully repaid by
Borrower, at the rate of interest applicable to Advances. In such event,
Borrower agrees that Bank, at Bank's sole discretion, may debit Borrower's
deposit account with Bank for the amount of any such draft.

              (b) Letter of Credit Sublimits. No Letters of Credit shall be
                  --------------------------
issued unless, on the date of the proposed issuance of any Letter of Credit, the
Advances available to Borrower under the Revolving Facility are equal to one
hundred percent (100%) of the face amount of such Letters of Credit. Except in
Bank's discretion, the amount of all Letter of Credit Obligations shall not at
any time exceed Two Million and 00/100 Dollars ($2,000,000).

              (c) Letter of Credit Reserve. Upon the issuance of a commercial
                  ------------------------
Letter of Credit, Bank shall create a reserve under the Revolving Facility in an
amount equal to fifty percent (50%) of the face amount of the commercial Letter
of Credit. The amount of such reserve may be amended by Bank from time to time.
The availability of funds under the Revolving Facility shall be reduced by the
amount of such reserve for so long as such commercial Letter of Credit remains
outstanding.

               (d) Letter of Credit Agreement. Each Letter of Credit shall be
                   --------------------------
subject to the additional terms and conditions of the Letter of Credit Agreement
and related documents, if any, required by Bank in connection with the issuance
thereof (each, a "Letter of Credit Agreement").

               (e) Letter of Credit Fees. Borrower shall pay to Bank fees upon
                   ---------------------
the issuance or amendment of each Letter of Credit and upon the payment by Bank
of each draft under

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<PAGE>

any Letter of Credit determined in accordance with Bank's standard fees and
charges in effect at the time any Letter of Credit is issued or amended or any
draft is paid.

          2.3 Manner of Borrowing. Borrower shall give Bank written or
              -------------------
telephonic notice (effective upon receipt) of any Advances under this Agreement,
at least two (2) Business Days before each COF Advance, and at least one (1)
Business Day before each Base Advance, specifying: (1) the date of such Advance;
(2) the amount of such Advance; (3) the type of Advance (COF or Base); and (4)
in the case of a COF Advance, the duration of the Interest Period applicable
thereto. Each such notification shall be promptly confirmed by a Payment/Advance
Form in substantially the form of Exhibit C hereto. Bank is authorized to make
                                  ---------
Advances under this Agreement, based upon instructions received from a
Responsible Officer. Bank shall be entitled to rely on any telephonic notice
given by a person who Bank reasonably believes to be a Responsible Officer, and
Borrower shall indemnify and hold Bank harmless for any damages or loss suffered
by Bank as a result of such reliance. Bank will credit the amount of Advances
made under Section 2.1 to Borrower's deposit account.

          2.4 Conversions and Renewals. Borrower may elect from time to time to
              ------------------------
convert all or a part of an Advance or to renew all or part of an Advance by
giving Bank at least two (2) Business Days before conversion into a Base
Advance, and at least two (2) Business Days before the conversion into or
renewal of a COF Advance, specifying: (a) the renewal or conversion date; (b)
the amount of the Advance to be converted or renewed; (3) in the case of
conversions, the type of Advance to be converted into (Base or COF); and (4) in
the case of renewals of or a conversion into a COF Advance, the duration of the
Interest Period applicable thereto; provided that (i) the minimum amount of COF
Advances renewed or converted shall be Five Hundred Thousand and 00/100 Dollars
($500,000.00); (ii) the minimum principal amount of COF Advances outstanding
after a renewal or conversion shall be Five Hundred Thousand and 00/100 Dollars
($500,000.00); and (ii) COF Advances can be converted only on the last day of
the Interest Period for such COF Advance. If Borrower shall fail to give Bank
the notice as specified above for the renewal or conversion of a COF Advance
prior to the end of the Interest Period with respect thereto, such COF Advance
shall automatically be converted into a Base Advance on the last day of the
Interest Period for such COF Advance.

          2.5 Interest. Borrower shall pay interest to Bank on the outstanding
              --------
and unpaid principal balance of the Advances made under the Revolving Facility
at a rate per annum equal to the interest rates set forth below:

<TABLE>
<CAPTION>
If the Borrower's Tangible Net          Base Advances shall bear         COF Advances shall bear
       Worth Ratio is:                interest at a floating rate     interest at a fixed rate per
                                          per annum equal to:                annum equal to:
<S>                                   <C>                             <C>
   Less than 6.00 to 1.00                 Base Rate plus 0.25%        Bank's Cost of Funds plus 300
                                                                               basis points
   Less than 5.00 to 1.00                      Base Rate              Bank's Cost of Funds plus 275
                                                                               basis points
   Less than 4.00 to 1.00                 Base Rate minus 0.25%       Bank's Cost of Funds plus 250
                                                                               basis points
</TABLE>

                                      -10-

<PAGE>

               (a)  Adjusted Rate. Any change in the interest rate resulting
                    -------------
from a change in the Base Rate shall be effective as of the opening of business
on the day on which such change in the Base Rate becomes effective.

               (b)  Default Rate. From and after the Termination Date, Advances
                    ------------
under the Revolving Facility shall bear interest at a rate equal to five
percentage points (5%) more than the interest rate that would have been
applicable hereunder. Anything herein to the contrary notwithstanding, interest
at the default rate shall be due and payable on demand but shall accrue from the
Termination Date until all Advances are paid in full.

          2.6  Repayment Terms. Interest only shall be due and payable on the
               ---------------
unpaid principal balance of the Revolving Facility, without claim, notice,
presentment or demand, in consecutive monthly installments on the first (1/st/)
day of each month commencing on the first (1/st/) day of the first (1/st/) full
calendar month following the Funding Date.

               (a)  Application of Payments. Each payment received by Bank shall
                    -----------------------
be credited as of its due date, without regard to its date of receipt by Bank,
first to interest accrued and unpaid as of such due date and the remainder to
principal, and interest shall cease upon the principal so credited. All interest
calculations shall be on a basis of a three hundred and sixty (360)-day year and
a thirty (30)-day month. Daily interest shall consist of the product of the
outstanding principal balance of the Revolving Facility times the annual
interest rate then in effect divided by 360, then multiplied by the number of
days for which the daily interest calculation is made. Interest paid for any
partial month shall be prorated based on a thirty (30)-day month and the actual
number of day elapsed. Interest shall be compounded monthly.

          2.7  Overadvances. If, at any time or for any reason, the amount of
               ------------
Obligations owed by Borrower to Bank pursuant to Section 2.1 of this Agreement
is greater than the lesser of (i) the Committed Line or (ii) the Borrowing Base,
Borrower shall immediately pay to Bank, in cash, the amount the Obligations
exceed the Committed Line or Borrowing Base.

          2.8  Termination of Revolving Facility. The Revolving Facility shall
               ---------------------------------
terminate on the Termination Date, at which time all unpaid principal, all
unpaid and accrued interest, and all other amounts due under the Revolving
Facility shall be immediately due and payable.

          2.9  Statements. With respect to each Advance, Bank is hereby
               ----------
authorized to note the date, principal amount, interest rate and Interest Period
applicable thereto, and any payments made thereon, on its books and records
(either manually or by electronic entry), which notations shall be conclusive
evidence of the information noted in the absence of manifest error. A failure by
Bank to record any such information shall not impair the Borrower's liability to
make payment when due. Bank shall render to Borrower each month a statement
setting forth the balance in Borrower's loan account maintained by Bank for
Borrower pursuant to the provisions of this Agreement, including principal,
interest, fees, costs and expenses. Each such statement shall be subject to
subsequent adjustment by Bank but shall, absent manifest errors or omissions, be
considered correct and deemed accepted by Borrower and conclusively binding upon
Borrower as an

                                      -11-

<PAGE>

account stated except to the extent that Bank receives a written notice from
Borrower of any specific exceptions of Borrower thereto within thirty (30) days
after the date such statement has been mailed by Bank. Until such time as Bank
shall have rendered to Borrower a written statement as provided above, the
balance in Borrower's loan account shall be presumptive evidence of the amounts
due and owing to Bank by Borrower.

          2.10 Ratification of Oblations. Debtor ratifies and reaffirms the
               -------------------------
Obligations, which are currently outstanding in the amount of $_______________,
without setoff, defense, or counterclaim. Borrower agrees fully and faithfully
to pay, perform and discharge, as and when payment, performance and discharge
are due, all of the Obligations under the Loan Agreement, as amended hereby. By
executing this Agreement, Borrower acknowledges and agrees that except as
supplemented or modified hereby, the Loan Documents are and shall remain in full
force and effect.

                                   Article III
           ADDITIONAL COSTS, LOCKBOX ACCOUNT AND CREDITING OF PAYMENTS

          3.1  Crediting Payments. Prior to the occurrence of an Event of
               ------------------
Default, Bank shall credit a wire transfer of funds, check or other item of
payment to such deposit account or Obligation as Borrower specifies. After the
occurrence of an Event of Default, the receipt by Bank of any wire transfer of
funds, check, or other item of payment shall be immediately applied to
conditionally reduce Obligations, but shall not be considered a payment on
account unless such payment is of immediately available federal funds or unless
and until such check or other item of payment is honored when presented for
payment. Notwithstanding anything to the contrary contained herein, any wire
transfer or payment received by Bank after 12:00 noon California time shall be
deemed to have been received by Bank as of the opening of business on the
immediately following Business Day. Whenever any payment to Bank under the Loan
Documents would otherwise be due (except by reason of acceleration) on a date
that is not a Business Day, such payment shall instead be due on the next
Business Day, and additional fees or interest, as the case may be, shall accrue
and be payable for the period of such extension.

          3.2  Lockbox Account. If there is an Event of Default, Borrower shall,
               ---------------
at Borrower's expense and in the manner requested by Bank, direct that
remittances and all other collections and proceeds of Accounts and other
Collateral be deposited into a non-interest bearing lock box account maintained
in Bank's name ("Lockbox Account"). In connection therewith, Borrower shall
execute such lockbox agreement as Bank shall require. Borrower shall maintain
the Lockbox Account with Bank, and Borrower hereby grants to Bank a security
interest in the Lockbox Account over which Borrower shall have no control and
into which the proceeds of all Collateral shall be deposited immediately upon
their receipt.

               (a)  Borrower and all of its affiliates, subsidiaries,
shareholders, directors, employees or agents shall, acting as trustee for Bank,
receive, as the property of Bank, any monies, checks, notes, drafts, or any
other payment relating to and/or proceeds of Accounts or other Collateral which
come into their possession or under their control and immediately upon receipt
thereof, shall deposit or cause the same to be deposited in the Lockbox Account,
or remit the same

                                      -12-

<PAGE>

or cause the same to be remitted, in kind, to Bank. In no event shall the same
be commingled with Borrower's own funds.

               (b)  Borrower authorizes Bank to accept, indorse and deposit on
behalf of Borrower any checks tendered by an account debtor "in full payment" of
its obligation to Borrower. Borrower shall not assert against Bank any claim
arising therefrom, irrespective of whether such action by Bank effects an accord
and satisfaction of Borrower's claims, under (S)3-311 of the UCC, or otherwise.

          3.3  Collateral Control Account. Bank may, on occasion, agree to
               --------------------------
permit Borrower to maintain a deposit account in addition to the Lockbox
Account, provided Bank (1) has been notified thereof by Borrower and Bank has
given written notice of Bank's security interest therein to the financial
institution where such account is located; and (2) such account is a blocked
account to which only Bank may have access.

          3.4  Financial Examination and Appraisal Fees. In the Event of
               ----------------------------------------
Default, Borrower shall pay Bank's customary fees and out-of-pocket expenses for
Bank's audits of Borrower's Accounts, and for each appraisal of Collateral and
financial analysis and examination of Borrower performed by Bank or its agents.

          3.5  Bank Expenses. In the Event of Default, Borrower shall pay all
               -------------
Bank Expenses incurred by Bank, including reasonable attorneys' fees and
expenses.

          3.6  Additional Costs. In case any change in any law, regulation,
               ----------------
treaty or official directive or the interpretation or application thereof by any
court or any governmental authority charged with the administration thereof or
the compliance with any guideline or request of any central bank or other
governmental authority (whether or not having the force of law), in each case
after the date of this Agreement: (a) subjects Bank to any tax with respect to
payments of principal or interest or any other amounts payable hereunder by
Borrower or otherwise with respect to the transactions contemplated hereby
(except for taxes on the overall net income of Bank imposed by the United States
of America or any political subdivision thereof); (b) imposes, modifies or deems
applicable any deposit insurance, reserve, special deposit or similar
requirement against assets held by, or deposits in or for the account of, or
loans by, Bank; or (c) imposes upon Bank any other condition with respect to its
performance under this Agreement, and the result of any of the foregoing is to
increase the cost to Bank, reduce the income receivable by Bank or impose any
expense upon Bank with respect to any loans, Bank shall notify Borrower thereof.
Borrower agrees to pay to Bank the amount of such increase in cost, reduction in
income or additional expense as and when such cost, reduction or expense is
incurred or determined, upon presentation by Bank of a statement of the amount
and setting forth Bank's calculation thereof, all in reasonable detail.

                                      -13-

<PAGE>

                                   Article IV
                               CONDITIONS OF LOANS

          4.1  Conditions Precedent to Initial Advance. The obligation of Bank
               ---------------------------------------
to make the initial Advance is subject to the condition precedent that Bank
shall have received, in form and substance satisfactory to Bank, the following:

               (a)  this Agreement;

               (b)  a certificate of the Secretary of Borrower with respect to
incumbency and resolutions authorizing the execution and delivery of this
Agreement;

               (c)  Reaffirmation of Guaranties by Guarantors;

               (d)  such other documents, and completion of such other matters,
as Bank may reasonably deem necessary or appropriate.

          4.2  Conditions Precedent to all Advances. The obligation of Bank to
               ------------------------------------
make each Advance, including the initial Advance, is further subject to the
following conditions:

               (a)  timely receipt by Bank of the Payment/Advance Form as
provided in Section 2.3 and

               (b)  the representations and warranties contained in Article VI
shall be true and correct in all material respects on and as of the date of such
Payment/Advance Form and on the effective date of each Advance as though made at
and as of each such date, and no Event of Default shall have occurred and be
continuing, or would result from such Advance. The making of each Advance shall
be deemed to be a representation and warranty by Borrower on the date of such
Advance as to the accuracy of the facts referred to in this Section 5.2(b).

                                      -14-

<PAGE>

                                    Article V
                          CREATION OF SECURITY INTEREST

          5.1  Grant of Security Interest. In order to secure prompt repayment
               --------------------------
of any and all Obligations, and in order to secure prompt performance by
Borrower of each of its covenants and duties under the Loan Documents, Borrower
grants and pledges to Bank a continuing security interest in all presently
existing and hereafter acquired or arising Collateral. Except as set forth in
the Exhibit B, such security interest constitutes a valid, first priority
    ---------
security interest in the presently existing Collateral, and will constitute a
valid, first priority security interest in Collateral acquired after the date
hereof.

          5.2  Delivery of Additional Documentation Required. Borrower shall
               ---------------------------------------------
from time to time execute and deliver to Bank, at the request of Bank, all
Negotiable Collateral, all financing statements and other documents that Bank
may reasonably request, in form satisfactory to Bank, to perfect and continue
perfected Bank's security interests in the Collateral and in order to fully
consummate all of the transactions contemplated under the Loan Documents.

          5.3  Right to Inspect. Bank (through any of its officers, employees,
               ----------------
or agents) shall have the right, upon reasonable prior notice, from time to time
during Borrower's usual business hours, to inspect Borrower's Books and to make
copies thereof and to check, test, and appraise the Collateral in order to
verify Borrower's financial condition or the amount, condition of, or any other
matter relating to, the Collateral.

                                   Article VI
                         REPRESENTATIONS AND WARRANTIES

          Borrower represents and warrants as follows:

          6.1  Due Organization and Qualification. Borrower and each Subsidiary
               ----------------------------------
is a corporation duly existing and in good standing under the laws of its state
of incorporation and qualified and licensed to do business in, and is in good
standing in, any state in which the conduct of its business or its ownership of
property requires that it be so qualified.

          6.2  Due Authorization; No Conflict. The execution, delivery, and
               ------------------------------
performance of the Loan Documents are within Borrower's powers, have been duly
authorized, and are not in conflict with nor constitute a breach of any
provision contained in Borrower's Articles of Incorporation or Bylaws, nor will
they constitute an event of default under any material agreement to which
Borrower is a party or by which Borrower is bound. Borrower is not in default
under any agreement to which it is a party or by which it is bound, which
default could have a Material Adverse Effect.

          6.3  No Prior Encumbrances. Borrower has good and indefeasible title
               ---------------------
to the Collateral, free and clear of Liens, except for Permitted Liens.

                                      -15-

<PAGE>

               6.4  Bona Fide Eligible Accounts. The Eligible Accounts are bona
                    ---------------------------
fide existing obligations. The property giving rise to such Eligible Accounts
has been delivered to the account debtor or to the account debtor's agent for
immediate shipment to and unconditional acceptance by the account debtor.
Borrower has not received notice of actual or imminent Insolvency Proceeding of
any account debtor that is included in any Borrowing Base Certificate as an
Eligible Account.

               6.5  Merchantable Inventory. All Inventory is in all material
                    ----------------------
respects of good and marketable quality, free from all material defects.

               6.6  Name; Location of Chief Executive Office. Borrower has not
                    ----------------------------------------
done business under any name other than that specified on the signature page
hereof. The chief executive office of Borrower is located at the address
indicated in Article XII hereof.

               6.7  Litigation. Except as set forth in Schedule 6.7, there are
                    ----------
no actions or proceedings pending by or against Borrower or any Subsidiary
before any court or administrative agency in which an adverse decision could
have a Material Adverse Effect or a material adverse effect on Borrower's
interest or Bank's security interest in the Collateral. Borrower does not have
knowledge of any such pending or threatened actions or proceedings.

               6.8  No Material Adverse Change in Financial Statements. All
                    --------------------------------------------------
consolidated financial statements related to Borrower and any Subsidiary that
have been delivered by Borrower to Bank fairly present in all material respects
Borrower's consolidated financial condition as of the date thereof and
Borrower's consolidated results of operations for the period then ended. There
has not been a material adverse change in the consolidated financial condition
of Borrower since the date of the most recent of such financial statements
submitted to Bank.

               6.9  Solvency. Borrower is solvent and able to pay its debts
                    --------
(including trade debts) as they mature.

               6.10 Regulatory Compliance. Borrower and each Subsidiary has met
                    ---------------------
the minimum funding requirements of ERISA with respect to any employee benefit
plans subject to ERISA. No event has occurred resulting from Borrower's failure
to comply with ERISA that is reasonably likely to result in Borrower's incurring
any liability that could have a Material Adverse Effect. Borrower is not an
"investment company" or a company "controlled" by an "investment company" within
the meaning of the Investment Company Act of 1940. Borrower is not engaged
principally, or as one of the important activities, in the business of extending
credit for the purpose of purchasing or carrying margin stock (within the
meaning of Regulations G, T and U of the Board of Governors of the Federal
Reserve System). Borrower has complied with all the provisions of the Federal
Fair Labor Standards Act. Borrower has not violated any statutes, laws,
ordinances or rules applicable to it, violation of which could have a Material
Adverse Effect.

               6.11 Environmental Condition. None of Borrower's or any
                    -----------------------
Subsidiary's properties or assets has ever been used by Borrower or any
Subsidiary or, to the best of Borrower's knowledge, by previous owners or
operators, in the disposal of, or to produce, store, handle, treat, release, or
transport, any hazardous waste or hazardous substance other than in accordance
with applicable law; to the best of Borrower's knowledge, none of Borrower's
properties or assets has

                                      -16-

<PAGE>

ever been designated or identified in any manner pursuant to any environmental
protection statute as a hazardous waste or hazardous substance disposal site, or
a candidate for closure pursuant to any environmental protection statute; no
lien arising under any environmental protection statute has attached to any
revenues or to any real or personal property owned by Borrower or any
Subsidiary; and neither Borrower nor any Subsidiary has received a summons,
citation, notice, or directive from the Environmental Protection Agency or any
other federal, state or other governmental agency concerning any action or
omission by Borrower or any Subsidiary resulting in the releasing, or otherwise
disposing of hazardous waste or hazardous substances into the environment.

          6.12 Taxes. Borrower and each Subsidiary has filed or caused to be
               -----
filed all tax returns required to be filed, and has paid, or has made adequate
provision for the payment of, all taxes reflected therein.

          6.13 Subsidiaries. Borrower does not own any stock, partnership
               ------------
interest or other equity securities of any Person, except for Permitted
Investments.

          6.14 Government Consents. Borrower and each Subsidiary has obtained
               -------------------
all consents, approvals and authorizations of, made all declarations or filings
with, and given all notices to, all governmental authorities that are necessary
for the continued operation of Borrower's business as currently conducted.

          6.15 Full Disclosure. No representation, warranty or other statement
               ---------------
made by Borrower in any certificate or written statement furnished to Bank
contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements contained in such certificates or
statements not misleading.

          6.16 Y2K Compliance. Borrower shall perform all acts reasonably
               --------------
necessary to ensure that:(i) Borrower and any business in which Borrower holds
a substantial interest, and (ii) all customers, suppliers and vendors that are
material to Borrower's business, become Year 2000 Compliant in a timely manner.
Such acts shall include, without limitation, performing a comprehensive review
and assessment of all of Borrower's systems and adopting a detailed plan, with
itemized budget, for the remediation, monitoring and testing of such systems. As
used in this section, "Year 2000 Compliant" shall mean, in regard to any entity,
that all software, hardware, firmware, equipment, goods or systems utilized by
or material to the business operations or financial condition of such entity,
will properly perform date sensitive functions before, during and after the year
2000. Borrower shall immediately upon request, provide to Bank such
certifications or other evidence of Borrower's compliance with terms of this
section as Bank may from time to time require.

                                      -17-

<PAGE>

                                   Article VII
                              AFFIRMATIVE COVENANTS

          Borrower covenants and agrees that, until payment in full of all
outstanding Obligations, and for so long as Bank may have any commitment to make
an Advance hereunder, Borrower shall do all of the following:

          7.1  Good Standing. Borrower shall maintain its and each of its
               -------------
Subsidiaries' corporate existence and good standing in its jurisdiction of
incorporation and maintain qualification in each jurisdiction in which the
failure to so qualify could have a Material Adverse Effect. Borrower shall
maintain, and shall cause each of its Subsidiaries to maintain, to the extent
consistent with prudent management of Borrower's business, in force all
licenses, approvals and agreements, the loss of which could have a Material
Adverse Effect.

          7.2  Government Compliance. Borrower shall meet, and shall cause each
               ---------------------
Subsidiary to meet, the minimum funding requirements of ERISA with respect to
any employee benefit plans subject to ERISA. Borrower shall comply, and shall
cause each Subsidiary to comply, with all statutes, laws, ordinances and
government rules and regulations to which it is subject, noncompliance with
which could have a Material Adverse Effect or a material adverse effect on the
Collateral or the priority of Bank's Lien on the Collateral.

          7.3  Financial Statements. Borrower shall deliver to Bank:
               --------------------

               (a)  Monthly Financial Statements. As soon as available and in
                    ----------------------------
any event within forty five (45) days after the end of each fiscal month of
Borrower, consolidated balance sheets of Borrower and its Subsidiaries as of the
end of such month, consolidated statements of income and retained earnings of
Borrower and its Subsidiaries for the period commencing at the end of the
previous fiscal year and ending with the end of such month, and consolidated
statements of changes in financial position of Borrower and its Subsidiaries for
the portion of the fiscal year ended with the last day of such month, all in
reasonable detail and stating in comparative form the respective figures for the
corresponding date and period in the previous fiscal year and all prepared in
accordance with GAAP consistently applied and certified by a Responsible Officer
of Borrower (subject to year-end adjustments).

               (b)  Annual Financial Statements. As soon as available and in any
                    ---------------------------
event within one hundred twenty (120) days after the end of each fiscal year of
the Borrower, consolidated balance sheets of Borrower and its Subsidiaries as of
the end of such fiscal year, consolidated statements of income and retained
earnings of Borrower and its Subsidiaries for such fiscal year, and consolidated
statements of changes in financial position of Borrower and its Subsidiaries for
such fiscal year, all in reasonable detail and standing in comparative form the
respective figures for the corresponding dates and period in the prior fiscal
year and all prepared in accordance with GAAP consistently applied and as to the
consolidated statements accompanied by an opinion thereon acceptable to Bank by
independent accountants selected by Borrower and acceptable to Bank.

                                      -18-

<PAGE>

               (c)  Guarantors' Financial Statements. Borrower shall deliver, or
                    --------------------------------
cause to be delivered, no later than one hundred twenty (120) days after and as
of the end of each fiscal year, a personal financial statement of each Guarantor
prepared by such Guarantor in accordance with GAAP, including all state and
federal income tax returns.

          7.4  Accountant's Report. Simultaneously with the delivery of the
               -------------------
annual financial statements referred to in Section 7.3(b), a certificate of the
independent public accountants who audited such statements to the effect that,
in making the examination necessary for the audit of such statements, they have
obtained no knowledge of any condition or event which constitutes a Default or
Event of Default, or if such accountants shall have obtained knowledge of any
such condition or event, specifying in such certificate each such condition or
event of which they have knowledge and the nature and status thereof.

          7.5  Monthly A/R and A/P Agings. Within fifteen (15) days after the
               --------------------------
last day of each month, Borrower shall deliver to Bank a monthly aged listings
of accounts receivable and accounts payable.

          7.6  Weekly Borrowing Base Certificate. Borrower shall deliver to
               ---------------------------------
Bank, on a weekly basis, a Borrowing Base Certificate signed by a Responsible
Officer in substantially the form of Exhibit D hereto.
                                     ---------

          7.7  Compliance Certificate. Borrower shall deliver to Bank, with the
               ----------------------
monthly financial statements, a Compliance Certificate signed by a Responsible
Officer in substantially the form of Exhibit E hereto.
                                     ---------

          7.8  Audit of Accounts. Bank shall have the right to conduct audits of
               -----------------
Borrower's Accounts and Borrower's Books on an annual basis during the term of
this Agreement, and upon an Event of Default as frequent as Bank may determine
in its reasonable discretion.

          7.9  Inventory; Returns. Borrower shall keep all Inventory in good and
               ------------------
marketable condition, free from all material defects. Returns and allowances, if
any, as between Borrower and its account debtors shall be on the same basis and
in accordance with the usual customary practices of Borrower, as they exist at
the time of the execution and delivery of this Agreement. Borrower shall
promptly notify Bank of all returns and recoveries and of all disputes and
claims, where the return, recovery, dispute or claim involves more than Fifty
Thousand Dollars ($50,000). In the Event of Default, Bank shall have the right
to audit Borrower's Inventory at Borrower's expense.

          7.10 Taxes. Borrower shall make, and shall cause each Subsidiary to
               -----
make, due and timely payment or deposit of all material federal, state, and
local taxes, assessments, or contributions required of it by law, and will
execute and deliver to Bank, on demand, appropriate certificates attesting to
the payment or deposit thereof; and Borrower will make, and will cause each
Subsidiary to make, timely payment or deposit of all material tax payments and
withholding taxes required of it by applicable laws, including, but not limited
to, those laws concerning F.I.C.A., F.U.T.A., state disability, and local,
state, and federal income taxes, and will, upon request, furnish Bank with proof
satisfactory to Bank indicating that Borrower or a Subsidiary has made such

                                      -19-

<PAGE>

payments or deposits; provided that Borrower or a Subsidiary need not make any
payment if the amount or validity of such payment is contested in good faith by
appropriate proceedings and is reserved against (to the extent required by GAAP)
by Borrower.

          7.11 Insurance.
               ---------

               (a)  Borrower, at its expense, shall keep the Collateral insured
against loss or damage by fire, theft, explosion, sprinklers, and all other
hazards and risks, and in such amounts, as ordinarily insured against by other
owners in similar businesses conducted in the locations where Borrower's
business is conducted on the date hereof. Borrower shall also maintain insurance
relating to Borrower's ownership and use of the Collateral in amounts and of a
type that are customary to businesses similar to Borrower's.

               (b)  All such policies of insurance shall be in such form, with
such companies, and in such amounts as reasonably satisfactory to Bank. All such
policies of property insurance shall contain a lender's loss payable
endorsement, in a form satisfactory to Bank, showing Bank as an additional loss
payee thereof and all liability insurance policies shall show the Bank as an
additional insured, and shall specify that the insurer must give at least twenty
(20) days notice to Bank before canceling its policy for any reason. Upon Bank's
request, Borrower shall deliver to Bank certified copies of such policies of
insurance and evidence of the payments of all premiums therefor. All proceeds
payable under any such policy shall, at the option of Bank, be payable to Bank
to be applied on account of the Obligations.

          7.12 Principal Depository. Borrower shall maintain its principal
               --------------------
depository and operating accounts with Bank.

          7.13 Further Assurances. At any time and from time to time Borrower
               ------------------
shall execute and deliver such further instruments and take such further action
as may reasonably be requested by Bank to effect the purposes of this Agreement.

                                  Article VIII
                               FINANCIAL COVENANTS

          8.1  Quick Ratio. Borrower shall maintain, as of the last day of each
               -----------
calendar month, a ratio of Quick Assets to Current  Liabilities of at
least 0.60 to 1.0.

          8.2  Tangible Net Worth Ratio. Borrower shall maintain, as of the last
               ------------------------
day of each month, a Tangible Net Worth Ratio of not more than 6.0:1.00. As of
December 31, 2000, Borrower shall maintain, as of the last day of each month, a
Tangible Net Worth Ratio of not more than 5.0:1.00.

          8.3  Tangible Effective Net Worth. Borrower shall maintain, as of the
               ----------------------------
last day of each calendar month, a Tangible Effective Net Worth of not less than
Two Million and 00/100 Dollars ($2,000,000.00), provided however that this
amount shall increase quarterly by an amount equal to eighty percent (80%) of
Borrower's Net Profit After Tax.

                                      -20-

<PAGE>

          8.4  Profitability.  Borrower shall have a minimum net profit greater
               -------------
than Zero and 00/100 Dollars ($0.00) for each quarter.

                                   Article IX
                               NEGATIVE COVENANTS

          Borrower covenants and agrees that, so long as any credit hereunder
shall be available and until payment in full of the outstanding Obligations or
for so long as Bank may have any commitment to make any Advances, Borrower will
not do any of the following:

          9.1  Dispositions. Convey, sell, lease, transfer or otherwise dispose
               ------------
of (collectively, a "Transfer"), or permit any of its Subsidiaries to Transfer,
all or any part of its assets, business or property, other than: (i) Transfers
of Inventory in the ordinary course of business; (ii) Transfers of non-exclusive
licenses and similar arrangements for the use of the property of Borrower or its
Subsidiaries; or (iii) Transfers of worn-out or obsolete Equipment.

          9.2  Change in Business. Engage in any business, or permit any of its
               ------------------
Subsidiaries to engage in any business, other than the businesses currently
engaged in by Borrower and any business substantially similar or related thereto
(or incidental thereto), or suffer a material change in Borrower's ownership.
Borrower will not, without thirty (30) days prior written notification to Bank,
relocate its chief executive office.

          9.3  Mergers or Acquisitions. Merge or consolidate, or permit any of
               -----------------------
its Subsidiaries to merge or consolidate, with or into any other business
organization, or acquire, or permit any of its Subsidiaries to acquire, all or
substantially all of the capital stock or property of another Person, without
the prior written consent of Bank and the delivery to Bank by Borrower of a
Borrower prepared proforma consolidated financial statement.

          9.4  Indebtedness. Create, incur, assume or be or remain liable with
               ------------
respect to any Indebtedness, or permit any Subsidiary so to do, other than
Permitted Indebtedness.

          9.5  Encumbrances. Create, incur, assume or suffer to exist any Lien
               ------------
with respect to any of its property, or assign or otherwise convey any right to
receive income, including the sale of any Accounts, or permit any of its
Subsidiaries so to do, except for Permitted Liens.

          9.6  Distributions. Pay any dividends or make any other distribution
               -------------
or payment on account of or in redemption, retirement or purchase of any capital
stock.

          9.7  Investments. Directly or indirectly acquire or own, or make any
               -----------
Investment in or to any Person, or permit any of its Subsidiaries so to do,
other than Permitted Investments.

          9.8  Transactions with Affiliates. Directly or indirectly enter into
               ----------------------------
or permit to exist any material transaction with any Affiliate of Borrower
except for transactions that are in the ordinary course of Borrower's business,
upon fair and reasonable terms that are no less favorable to Borrower than would
be obtained in an arm's length transaction with a nonaffiliated Person.

                                       -21-

<PAGE>

          9.9  Subordinated Debt. Make any payment in respect of any
               -----------------
Subordinated Debt, or permit any of its Subsidiaries to make any such payment,
except in compliance with the terms of such Subordinated Debt, or amend any
provision contained in any documentation relating to the Subordinated Debt
without Bank's prior written consent.

          9.10 Inventory. Store the Inventory with a bailee, warehouseman, or
               ---------
similar party unless Bank has received a pledge of the warehouse receipt
covering such Inventory. Except for Inventory sold in the ordinary course of
business and except for such other locations as Bank may approve in writing,
Borrower shall keep the Inventory only at the locations set forth in this
Section 9.10 hereof and such other locations of which Borrower gives Bank prior
written notice and as to which Borrower signs and files a financing statement
where needed to perfect Bank's security interest.

                               Inventory Locations

<TABLE>
<CAPTION>
---------------------------------- ---------------------------------------------
               STATE                             ADDRESS
---------------------------------- ---------------------------------------------
<S>                                <C>
            California             3051 Corvin Drive;
                                   Santa Clara, CA 95051
---------------------------------- ---------------------------------------------
             Colorado              7600 S. Grant Street; Suite A4
                                   Littleton, CO 80122
---------------------------------- ---------------------------------------------
               Texas               8044 El Rio
                                   Houston, TX 77054
---------------------------------- ---------------------------------------------
            Washington             206 Frontage Road - North, Suite A1
                                   Pacific, WA 98047
---------------------------------- ---------------------------------------------
</TABLE>

          9.11 Compliance. Become an "investment company" controlled by an
               ----------
"investment company," within the meaning of the Investment Company Act of 1940,
or become principally engaged in, or undertake as one of its important
activities, the business of extending credit for the purpose of purchasing or
carrying margin stock, or use the proceeds of any Advance for such purpose. Fail
to meet the minimum funding requirements of ERISA, permit a Reportable Event or
Prohibited Transaction, as defined in ERISA, to occur, fail to comply with the
Federal Fair Labor Standards Act or violate any law or regulation, which
violation could have a Material Adverse Effect or a material adverse effect on
the Collateral or the priority of Bank's Lien on the Collateral, or permit any
of its Subsidiaries to do any of the foregoing.

                                   Article X
                                EVENTS OF DEFAULT

          Any one or more of the following events shall constitute an "Event of
Default" by Borrower under this Agreement:

          10.1 Payment Default. If Borrower fails to pay the principal of, or
               ---------------
any interest on, any Advances when due and payable; or fails to pay any portion
of any other Obligations not

                                       -22-

<PAGE>

constituting such principal or interest, including without limitation Bank
Expenses, within thirty (30) days of receipt by Borrower of an invoice for such
other Obligations;

          10.2  Covenant Default. If Borrower fails to perform any obligation
                ----------------
hereunder or violates any of the covenants contained in this Agreement, or fails
or neglects to perform, keep, or observe any other material term, provision,
condition, covenant, or agreement contained in this Agreement, in any of the
Loan Documents, or in any other present or future agreement between Borrower and
Bank and as to any default under such other term, provision, condition, covenant
or agreement that can be cured, has failed to cure such default within ten (10)
Business Days after Borrower receives notice thereof or any officer of Borrower
becomes aware thereof; provided, however, that if the default cannot by its
nature be cured within the ten (10) day period or cannot after diligent attempts
by Borrower be cured within such ten (10) day period, and such default is likely
to be cured within a reasonable time, then Borrower shall have an additional
reasonable period (which shall not in any case exceed thirty (30) days) to
attempt to cure such default, and within such reasonable time period the failure
to have cured such default shall not be deemed an Event of Default (provided
that no Advances will be required to be made during such cure period);

          10.3  Material Adverse Change. If there occurs a material adverse
                -----------------------
change in Borrower's business or financial condition, or if there is a material
impairment of the prospect of repayment of any portion of the Obligations or a
material impairment of the value or priority of Bank's security interests in the
Collateral;

          10.4  Attachment. If any material portion of Borrower's assets is
                ----------
attached, seized, subjected to a writ or distress warrant, or is levied upon, or
comes into the possession of any trustee, receiver or person acting in a similar
capacity and such attachment, seizure, writ or distress warrant or levy has not
been removed, discharged or rescinded within ten (10) Business Days, or if
Borrower is enjoined, restrained, or in any way prevented by court order from
continuing to conduct all or any material part of its business affairs, or if a
judgment or other claim becomes a lien or encumbrance upon any material portion
of Borrower's assets, or if a notice of lien, levy, or assessment is filed of
record with respect to any of Borrower's assets by the United States Government,
or any department, agency, or instrumentality thereof, or by any state, county,
municipal, or governmental agency, and the same is not paid within ten (10)
Business Days after Borrower receives notice thereof, provided that none of the
foregoing shall constitute an Event of Default where such action or event is
stayed or an adequate bond has been posted pending a good faith contest by
Borrower (provided that no Advances will be required to be made during such cure
period);

          10.5  Insolvency. If Borrower becomes insolvent, or if an Insolvency
                ----------
Proceeding is commenced by Borrower, or if an Insolvency Proceeding is commenced
against Borrower and is not dismissed or stayed within ten (10) Business Days
(provided that no Advances will be made prior to the dismissal of such
Insolvency Proceeding);

          10.6  Other Agreements. If there is a default in any agreement to
                ----------------
which Borrower is a party with a third party or parties resulting in a right by
such third party or parties, whether or

                                       -23-

<PAGE>

not exercised, to accelerate the maturity of any Indebtedness in an amount
in excess of One Hundred Thousand Dollars ($100,000) or that could have a
Material Adverse Effect;

          10.7  Subordinated Debt. If Borrower makes any payment on account of
                -----------------
Subordinated Debt, except to the extent such payment is allowed under any
subordination agreement entered into with Bank;

          10.8  Judgments. If a judgment or judgments for the payment of money
                ---------
in an amount, individually or in the aggregate, of at least Fifty Thousand
Dollars ($50,000) shall be rendered against Borrower and shall remain
unsatisfied and unstayed for a period of ten (10) Business Days (provided that
no Advances will be made prior to the satisfaction or stay of such judgment); or

          10.9  Misrepresentations. If any material misrepresentation or
                ------------------
material misstatement exists now or hereafter in any warranty or representation
set forth herein or in any certificate delivered to Bank by any Responsible
Officer pursuant to this Agreement or to induce Bank to enter into this
Agreement or any other Loan Document.

          10.10 Guaranty. Any guaranty of all or a portion of the Obligations
                --------
ceases for any reason to be in full force and effect, or any guarantor fails to
perform any obligation under any guaranty of all or a portion of the
Obligations, or any material misrepresentation or material misstatement exists
now or hereafter in any warranty or representation set forth in any guaranty of
all or a portion of the Obligations or in any certificate delivered to Bank in
connection with such guaranty.

                                   Article XI
                           BANK'S RIGHTS AND REMEDIES

          11.1  Rights and Remedies. Upon the occurrence and during the
                -------------------
continuance of an Event of Default, Bank may, at its election, without notice of
its election and without demand, do any one or more of the following, all of
which are authorized by Borrower:

                (a)     Declare all Obligations, whether evidenced by this
Agreement, by any of the other Loan Documents, or otherwise, immediately due and
payable (provided that upon the occurrence of an Event of Default described in
Section 10.5 all Obligations shall become immediately due and payable without
any action by Bank);

                (b)     Cease advancing money or extending credit to or for the
benefit of Borrower under this Agreement or under any other agreement between
Borrower and Bank;

                (c)     Demand that Borrower (i) deposit cash with Bank in an
amount equal to the amount of any Letters of Credit remaining undrawn, as
collateral security for the repayment of any future drawings under such Letters
of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii)
pay in advance all Letters of Credit fees scheduled to be paid or payable over
the remaining term of the Letters of Credit;

                                       -24-

<PAGE>

                (d)     Settle or adjust disputes and claims directly with
account debtors for amounts, upon terms and in whatever order that Bank
reasonably considers advisable;

                (e)     Without notice to or demand upon Borrower, make such
payments and do such acts as Bank considers necessary or reasonable to protect
its security interest in the Collateral. Borrower agrees to assemble the
Collateral if Bank so requires, and to make the Collateral available to Bank as
Bank may designate. Borrower authorizes Bank to enter the premises where the
Collateral is located, after reasonable notice, to take and maintain possession
of the Collateral, or any part of it, and to pay, purchase, contest, or
compromise any encumbrance, charge, or lien which in Bank's determination
appears to be prior or superior to its security interest and to pay all expenses
incurred in connection therewith. With respect to any of Borrower's owned
premises, Borrower hereby grants Bank a license to enter into possession of such
premises and to occupy the same, without charge, in order to exercise any of
Bank's rights or remedies provided herein, at law, in equity, or otherwise;

                (f)     Without notice to Borrower set off and apply to the
Obligations any and all (i) balances and deposits of Borrower held by Bank, or
(ii) indebtedness at any time owing to or for the credit or the account of
Borrower held by Bank;

                (g)     Ship, reclaim, recover, store, finish, maintain, repair,
prepare for sale, advertise for sale, and sell (in the manner provided for
herein) the Collateral. Bank is hereby granted a license or other right, solely
pursuant to the provisions of this Section 11.1, to use, without charge,
Borrower's labels, patents, copyrights, rights of use of any name, trade
secrets, trade names, trademarks, service marks, and advertising matter, or any
property of a similar nature, as it pertains to the Collateral, in completing
production of, advertising for sale, and selling any Collateral and, in
connection with Bank's exercise of its rights under this Section 11.1,
Borrower's rights under all licenses and all franchise agreements shall inure to
Bank's benefit;

                (h)     Sell the Collateral at either a public or private sale,
or both, by way of one or more contracts or transactions, for cash or on terms,
in such manner and at such places (including Borrower's premises) as Bank
determines is commercially reasonable, and apply any proceeds to the Obligations
in whatever manner or order Bank deems appropriate;

                (i)     Bank may credit bid and purchase at any public sale; and

                (j)     Any deficiency that exists after disposition of the
Collateral as provided above will be paid immediately by Borrower.

        11.2    Power of Attorney. Effective only upon the occurrence and during
                -----------------
the continuance of an Event of Default, Borrower hereby irrevocably appoints
Bank (and any of Bank's designated officers, or employees) as Borrower's true
and lawful attorney to: (a) send requests for verification of Accounts or notify
account debtors of Bank's security interest in the Accounts; (b) endorse
Borrower's name on any checks or other forms of payment or security that may
come into Bank's possession; (c) sign Borrower's name on any invoice or bill of
lading relating to any Account, drafts against account debtors, schedules and
assignments of Accounts, verifications of Accounts, and notices to account
debtors; (d) make, settle, and adjust all claims under and decisions

                                       -25-

<PAGE>

with respect to Borrower's policies of insurance; and (e) settle and adjust
disputes and claims respecting the accounts directly with account debtors, for
amounts and upon terms which Bank determines to be reasonable; provided Bank may
exercise such power of attorney to sign the name of Borrower on any of the
documents described in Section 5.2 upon an Event of Default. The appointment of
Bank as Borrower's attorney in fact, and each and every one of Bank's rights and
powers, being coupled with an interest, is irrevocable until all of the
Obligations have been fully repaid and performed and Bank's obligation to
provide advances hereunder is terminated.

          11.3  Accounts Collection. At any time from the date of this
                -------------------
Agreement, Bank may notify any Person owing funds to Borrower of Bank's security
interest in such funds and verify the amount of such Account. Borrower shall
collect all amounts owing to Borrower for Bank, receive in trust all payments as
Bank's trustee, and immediately deliver such payments to Bank in their original
form as received from the account debtor, with proper endorsements for deposit.

          11.4  Bank Expenses. If Borrower fails to pay any amounts or furnish
                -------------
any required proof of payment due to third persons or entities, as required
under the terms of this Agreement, then Bank may do any or all of the following:
(a) make payment of the same or any part thereof; (b) set up such reserves under
the Revolving Facility as Bank deems necessary to protect Bank from the exposure
created by such failure; or (c) obtain and maintain insurance policies of the
type discussed in Section 7.11 of this Agreement, and take any action with
respect to such policies as Bank deems prudent. Any amounts so paid or deposited
by Bank shall constitute Bank Expenses, shall be immediately due and payable,
and shall bear interest at the then applicable rate hereinabove provided, and
shall be secured by the Collateral. Any payments made by Bank shall not
constitute an agreement by Bank to make similar payments in the future or a
waiver by Bank of any Event of Default under this Agreement.

          11.5  Bank's Liability for Collateral. So long as Bank complies with
                -------------------------------
reasonable banking practices, Bank shall not in any way or manner be liable or
responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage
thereto occurring or arising in any manner or fashion from any cause; (c) any
diminution in the value thereof; or (d) any act or default of any carrier,
warehouseman, bailee, forwarding agency, or other person whomsoever. All risk of
loss, damage or destruction of the Collateral shall be borne by Borrower.

          11.6  Remedies Cumulative. Bank's rights and remedies under this
                -------------------
Agreement, the Loan Documents, and all other agreements shall be cumulative.
Bank shall have all other rights and remedies not inconsistent herewith as
provided under the UCC, by law, or in equity. No exercise by Bank of one right
or remedy shall be deemed an election, and no waiver by Bank of any Event of
Default on Borrower's part shall be deemed a continuing waiver. No delay by Bank
shall constitute a waiver, election, or acquiescence by it. No waiver by Bank
shall be effective unless made in a written document signed on behalf of Bank
and then shall be effective only in the specific instance and for the specific
purpose for which it was given.

          11.7  Demand; Protest. Borrower waives demand, protest, notice of
                ---------------
protest, notice of default or dishonor, notice of payment and
nonpayment, notice of any default, nonpayment at maturity, release, compromise,
settlement, extension, or renewal of accounts, documents,

                                       -26-

<PAGE>

instruments, chattel paper, and guarantees at any time held by Bank on which
Borrower may in any way be liable.

                                  Article XII
                                     NOTICES

          Unless otherwise provided in this Agreement, all notices or demands by
any party relating to this Agreement or any other agreement entered into in
connection herewith shall be in writing and (except for financial statements and
other informational documents which may be sent by first-class mail, postage
prepaid) shall be personally delivered or sent by a recognized overnight
delivery service, certified mail, postage prepaid, return receipt requested, or
by telefacsimile to Borrower or to Bank, as the case may be, at its addresses
set forth below:

                  If to Borrower:           WOOD ALLIANCE, S.P.  INC.
                                            3073 Corvin Drive
                                            Santa Clara, CA 95051
                                            Attn: ____________________
                                            FAX: ___________________

                                       -27-

<PAGE>

                  If to Bank:               COMERICA BANK-CALIFORNIA
                                            333 West Santa Clara Street
                                            San Jose, CA 95113
                                            Attn: David Jackson
                                            FAX: (408) 556-5395

          The parties hereto may change the address at which they are to receive
notices hereunder, by notice in writing in the foregoing manner given to the
other.

                                  Article XIII
                   CHOICE OF LAW; VENUE; AND JURY TRIAL WAIVER

          This Agreement and all transactions contemplated hereunder and/or
evidenced hereby shall be governed by, construed under, and enforced in
accordance with the internal laws of the State of California, without regard to
principles of conflicts of law. Each of Borrower and Bank hereby submits to the
exclusive jurisdiction of the state and Federal courts located in the County of
Santa Clara, State of California. BORROWER AND BANK EACH HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED
THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL
OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY RECOGNIZES AND AGREES THAT THE
FOREGOING WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS
AGREEMENT. EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER
WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

                                  Article XIV
                               GENERAL PROVISIONS

          14.1  Successors and Assigns. This Agreement shall bind and inure to
                ----------------------
the benefit of the respective successors and permitted assigns of each of the
parties; provided, however, that neither this Agreement nor any rights hereunder
may be assigned by Borrower without Bank's prior written consent, which consent
may be granted or withheld in Bank's sole discretion. Bank shall have the right
without the consent of or notice to Borrower to sell, transfer, negotiate, or
grant participation in all or any part of, or any interest in, Bank's
obligations, rights and benefits hereunder.

          14.2  Term. This Agreement shall become effective on the Closing Date
                ----
and, subject to Section 14.11, shall continue in full force and effect for a
term ending on the Termination Date. Notwithstanding the foregoing, Bank shall
have the right to terminate its obligation to make Advances under this Agreement
immediately and without notice upon the occurrence and during

                                       -28-

<PAGE>

the continuance of an Event of Default. Notwithstanding termination, Bank's Lien
on the Collateral shall remain in effect for so long as any Obligations are
outstanding.

          14.3  Indemnification. Borrower shall defend, indemnify and hold
                ---------------
harmless Bank and its officers, employees, and agents against: (a) all
obligations, demands, claims, and liabilities claimed or asserted by any other
party in connection with the transactions contemplated by this Agreement; and
(b) all losses or Bank Expenses in any way suffered, incurred, or paid by Bank
as a result of or in any way arising out of, following, or consequential to
transactions between Bank and Borrower whether under this Agreement, or
otherwise (including without limitation reasonable attorneys fees and expenses),
except for losses caused by Bank's gross negligence or willful misconduct.

          14.4  Time of Essence. Time is of the essence for the performance of
                ---------------
all obligations set forth in this Agreement.

          14.5  Severability of Provisions. In the event any one or more of the
                --------------------------
provisions contained in this Agreement is held to be invalid, illegal or
unenforceable in any respect, then such provision shall be ineffective only to
the extent of such prohibition or invalidity, and the validity, legality, and
enforceability of the remaining provisions contained herein shall not in any way
be affected or impaired thereby.

          14.6  Amendments. Neither this Agreement nor any provisions hereof may
                ----------
be changed, waived, discharged or terminated, nor may any consent to the
departure from the terms hereof be given, orally (even if supported by new
consideration), but only by an instrument in writing signed by all parties to
this Agreement. Any waiver or consent so given shall be effective only in the
specific instance and for the specific purpose for which given.

          14.7  Entire Agreement. This Agreement, together with the Loan
                ----------------
Documents embodies the entire agreement and understanding among and between the
parties hereto, and supersedes all prior or contemporaneous agreements and
understandings between said parties, verbal or written, express or implied,
relating to the subject matter hereof. No promises of any kind have been made by
Bank or any third party to induce Borrower to execute this Agreement. No course
of dealing, course of performance or trade usage, and no parol evidence of any
nature, shall be used to supplement or modify any terms of this Agreement.

          14.8  Waiver. No failure to exercise and no delay in exercising any
                ------
right, power, or remedy hereunder shall impair any right, power, or remedy which
Bank may have, nor shall any such delay be construed to be a waiver of any of
such rights, powers, or remedies, or any acquiescence in any breach or default
hereunder; nor shall any waiver by Bank of any breach or default by Borrower
hereunder be deemed a waiver of any default or breach subsequently occurring.
All rights and remedies granted to Bank hereunder shall remain in full force and
effect notwithstanding any single or partial exercise of, or any discontinuance
of action begun to enforce, any such right or remedy. The rights and remedies
specified herein are cumulative and not exclusive of each other or of any rights
or remedies which Bank would otherwise have. Any waiver, permit, consent or

                                       -29-

<PAGE>

approval by Bank of any breach or default hereunder must be in writing and
shall be effective only to the extent set forth in such writing and only as to
that specific instance.

          14.9   Counterparts. This Agreement may be signed in any number of
                 ------------
counterparts, each of which shall be an original, with the same effect as if all
signatures were upon the same instrument. Delivery of an executed counterpart of
the signature page to this Agreement by telefacsimile shall be effective as
delivery of a manually executed counterpart of this Agreement, and any party
delivering such an executed counterpart of the signature page to this Agreement
by telefacsimile to any other party shall thereafter also promptly deliver a
manually executed counterpart of this Agreement to such other party, provided
                                                                     --------
that the failure to deliver such manually executed counterpart shall not affect
the validity, enforceability, or binding effect of this Agreement.

          14.10  Interpretation. This Agreement and all agreements relating to
                 --------------
the subject matter hereof are the product of negotiation and preparation by and
among each party and its respective attorneys, and shall be construed
accordingly. The parties waive the provisions of California Civil Code (S) 1654.

          14.11  Survival. All covenants, representations and warranties made in
                 --------
this Agreement shall continue in full force and effect so long as any
Obligations remain outstanding. The obligations of Borrower to indemnify Bank
with respect to the expenses, damages, losses, costs and liabilities shall
survive until all applicable statute of limitations periods with respect to
actions that may be brought against Bank have run, provided that so long as the
obligations set forth in the first sentence of this Section 14.11 have been
satisfied, and Bank has no commitment to make any Advances or to make any other
loans to Borrower, Bank shall release all security interests granted hereunder
and redeliver all Collateral held by it in accordance with applicable law.

          14.12  Confidentiality. In handling any confidential information Bank
                 ---------------
shall exercise the same degree of care that it exercises with respect to its own
proprietary information of the same types to maintain the confidentiality of any
non-public information thereby received or received pursuant to this Agreement
except that disclosure of such information may be made (i) to the subsidiaries
or affiliates of Bank in connection with their present or prospective business
relations with Borrower, (ii) to prospective transferees or purchasers of any
interest in the Loans, provided that they have entered into a comparable
confidentiality agreement in favor of Borrower and have delivered a copy to
Borrower, (iii) as required by law, regulations, rule or order, subpoena,
judicial order or similar order, (iv) as may be required in connection with the
examination, audit or similar investigation of Bank and (v) as Bank may
determine in connection with the enforcement of any remedies hereunder.
Confidential information hereunder shall not include information that either:
(a) is in the public domain or in the knowledge or possession of Bank when
disclosed to Bank, or becomes part of the public domain after disclosure to Bank
through no fault of Bank; or (b) is disclosed to Bank by a third party, provided
Bank does not have actual knowledge that such third party is prohibited from
disclosing such information.

                                       -30-

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Amended and
Restated Revolving Loan and Security Agreement to be executed as of the date
first above written.

                                    WOOD ALLIANCE, S.P. INC.

                                    By:               /s/ Monte D. Wood
                                        ----------------------------------------

                                    Title:              President/CEO
                                           -------------------------------------

                                    By:             /s/ James D. Childers
                                        ----------------------------------------

                                    Title:        Executive V.P./Secretary
                                           -------------------------------------

                                    COMERICA BANK-CALIFORNIA

                                    By:               /s/ Guy Steffens
                                        ----------------------------------------

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

                                       -31-

<PAGE>

                                    EXHIBIT A
                                    ---------

         The Collateral shall consist of all right, title and interest of
Borrower in and to the following:

         (a) All goods and equipment now owned or hereafter acquired, including,
without limitation, all machinery, fixtures, vehicles (including motor vehicles
and trailers), and any interest in any of the foregoing, and all attachments,
accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing, wherever located;

         (b) All inventory, now owned or hereafter acquired, including, without
limitation, all merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products including such
inventory as is temporarily out of Borrower's custody or possession or in
transit and including any returns upon any accounts or other proceeds, including
insurance proceeds, resulting from the sale or disposition of any of the
foregoing and any documents of title representing any of the above, and
Borrower's Books relating to any of the foregoing;

         (c) All contract rights and general intangibles now owned or hereafter
acquired, including, without limitation, goodwill, trademarks, servicemarks,
trade styles, trade names, patents, patent applications, leases, license
agreements, franchise agreements, blueprints, drawings, purchase orders,
customer lists, route lists, infringements, claims, computer programs, computer
discs, computer tapes, literature, reports, catalogs, design rights, income tax
refunds, payments of insurance and rights to payment of any kind;

         (d) All now existing and hereafter arising accounts, contract rights,
royalties, license rights and all other forms of obligations owing to Borrower
arising out of the sale or lease of goods, the licensing of technology or the
rendering of services by Borrower, whether or not earned by performance, and any
and all credit insurance, guaranties, and other security therefor, as well as
all merchandise returned to or reclaimed by Borrower and Borrower's Books
relating to any of the foregoing;

         (e) All documents, cash, deposit accounts, securities, letters of
credit, certificates of deposit, instruments and chattel paper now owned or
hereafter acquired and Borrower's Books relating to the foregoing;

         (f) All copyright rights, copyright applications, copyright
registrations and like protections in each work of authorship and derivative
work thereof, whether published or unpublished, now owned or hereafter acquired;
all trade secret rights, including all rights to unpatented inventions,
know-how, operating manuals, license rights and agreements and confidential
information, now owned or hereafter acquired; all mask work or similar rights
available for the protection of semiconductor chips, now owned or hereafter
acquired; all claims for damages by way of any past, present and future
infringement of any of the foregoing;

         (g) All investment property; and

         (h) Any and all claims, rights and interests in any of the above and
all substitutions for, additions and accessions and all cash and non-cash
proceeds of any of the foregoing, in whatever form (including proceeds in the
form of inventory, equipment or any other form of personal property), including
proceeds of proceeds, insurance proceeds and all claims against third parties
for loss or damage to or destruction of any or all of the foregoing.

                                       -32-

<PAGE>

                                    EXHIBIT B

                                 PERMITTED LIENS

<PAGE>

                                    EXHIBIT C

                              PAYMENT/ADVANCE FORM

<PAGE>

                            ADVANCE/PAYMENT REQUESTS)
                            -------------------------
        FOR ACCOUNTS RECEIVABLE LOANS/COLLATERAL CONTROL PROCESSING ONLY
        ----------------------------------------------------------------

PREPARED BY:                               DATE:
            ----------------------------        --------------------------------

<TABLE>
<CAPTION>
------------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
                                                                                INTEREST
      OBLIGOR           BORROWER           ADVANCE           PAYDOWN            PAYMENT          OFFSET            CALLER
------------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
<S>                 <C>               <C>               <C>               <C>               <C>               <C>
------------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------

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

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

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

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

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

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

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

------------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
</TABLE>

<PAGE>

                                    EXHIBIT D

                           BORROWING BASE CERTIFICATE

<PAGE>

                                    EXHIBIT E

                         FORM OF COMPLIANCE CERTIFICATE

                  Pursuant to Section 7.7 of that certain Amended and Restated
Revolving Loan and Security Agreement (the "Loan Agreement") dated as of
__________ by and between WOOD ALLIANCE, S.P. INC. d/b/a Wood Associates, a
California corporation ("Borrower"), and COMERICA BANK-CALIFORNIA, ("Bank"), the
undersigned, ____________________ of the Borrower, hereby certifies as follows
(each of the capitalized terms used herein without definition shall having the
meaning set forth in the Loan Agreement):

                  1.  Attached hereto are calculations for [month] demonstrating
that the Borrower is in compliance with Article VIII of the Loan Agreement.

                  2.  No Default or Event of Default exists or has existed
during the aforementioned period./1/

The undersigned certifies that s/he has read the conditions, definitions and
other provisions contained in the Loan Agreement and Loan Documents, and that,
in his opinion, he has made or caused to be made such examination or
investigation as is necessary to enable him to express an informed opinion with
respect to the matters contained in this Certificate.

Dated: ____________________

                                            WOOD ALLIANCE, S.P. INC.,
                                            a California corporation

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------

----------
   /1/  If a Default or Event of Default exists or has existed during the
aforementioned period, then the nature, period of existence, and actions taken
by Borrower or its applicable Subsidiary with respect thereto shall be attached
hereto as an Exhibit and be in form and substance satisfactory to Bank.

<PAGE>

        [LOGO]
Comerica Bank-California

REPORT OF ACCOUNTS RECEIVABLE (Note: Company should retain a copy of this report
fur its records.)

We submit the following information in connection with the Security Agreement(s)
(Accounts Receivable and Inventory) heretofore executed by the undersigned in
favor of the bank. This report is dated _______________, 19_______, and this
report's sequential transmittal number is ___________.

Accounts Receivable

<TABLE>
<S>                                                                            <C>
1.    Balance Accounts Receivable     ___________________, 19_______           $
                                                                               -----------------------------------------------------

2.    Charges Billed This Month To Date (Dr.  To A/R)                          +
                                                                               -----------------------------------------------------

3.    Credits Month to Date (Cr to A/R)
      A.  Payments ______________________________
      B.  Adjustments ____________________________                             -
                                                                               -----------------------------------------------------

                               Month          Day          Year
                               -----          ---          ----

4.    Balance Accounts Rec.      ____________________                          $
                                                                               -----------------------------------------------------
5.    Charges Since Last Report  ____________________

6.    Payments Since Last Report ____________________

7.    Ineligible Accounts (see detail.  over)                                  -
                                                                               -----------------------------------------------------

8.    Net Eligible Accounts Receivable (Line 4 Less Line 7)                    $
                                                                               -----------------------------------------------------

9.    Loan Formula @__________% Of Net Eligible                                $
                                                                               =====================================================
      Accounts Receivable or Maximum Line Amount

Loan

10.   Loan Balance Per Last Report dated: ____________________, 19______       $
                                                                               -----------------------------------------------------

11.   Less Loan Payments                                                       -
                                                                               -----------------------------------------------------
      (Attach tape to illustrate calculation of payments total since Last Report)

12.   Sub Total                                                                $
                                                                               -----------------------------------------------------

13.   Plus Advances and Outer Obligations

      A.  Advances Since Last Report  __________________________
          (Attach tape to illustrate calculations)
      B.  This Advance                __________________________
      C.  Other Obligations           __________________________               +
                                                                               -----------------------------------------------------
          (include letters of credit, B/A, etc.)

14.   Current Loan Balance                                                     $
                                                                               =====================================================

15.   Net Loan Availability (Lice 9 less line 14)                              $
                                                                               =====================================================
</TABLE>

AS SECURITY FOR ALL OBLIGATIONS OF THE UNDERSIGNED, DIRECT OR CONTINGENT, WHICH
ARE NOW OWING OR WHICH HEREAFTER MAY BE OWING TO COMERICA BANK CALIFORNIA, THE
COMPANY HEREBY ASSIGNS AND GRANTS TO SAID BANK A SECURITY INTEREST IN THE
ACCOUNTS LISTED IN THE ABOVE SCHEDULE, MONIES DUE UPON THE SAME AND ALL
MERCHANDISE RETURNED OR REJECTED. THE COMPANY REPRESENTS THAT THE ABOVE SCHEDULE
CORRECTLY SETS FORTH THE ACCOUNTS NOW OWING THE UNDERSIGNED FOR BONA FIDE SALES
AND DELIVERIES OF MERCHANDISE; THAT THERE ARE NO OFFSETS OR COUNTER-CLAIMS OF
ANY NATURE WHATSOEVER AGAINST ANY OF THE ACCOUNTS; THAT NONE OF SAID ACCOUNTS
ARE PAST DUE (EXCEPT AS NOTED ON LINE 7); THAT PROPER ENTRIES HAVE BEEN MADE ON
THE BOOKS OF THE COMPANY DISCLOSING THE ASSIGNMENT OF SUCH ACCOUNTS TO SAID
BANK; THAT NONE OF SAID ACCOUNTS NAVE BEEN SOLD OR ASSIGNED TO ANY OTHER PARTY;
THAT SAID ACCOUNTS ARE ASSIGNED PURSUANT TO AND IN ACCORDANCE WITH ALL THE TERMS
AND PROVISIONS OF THE SECURITY AGREEMENT AND ANY OTHER AGREEMENT EXECUTED BY THE
COMPANY AND COMERICA BANK-CALIFORNIA RELATING TO ADVANCES TO BE MADE BY SAID
BANK ON SUCH ACCOUNTS AND THE ASSIGNMENT THEREOF, AND THAT ALL SUCH ACCOUNTS ARE
ELIGIBLE ACCOUNTS (EXCEPT AS NOTED ON LINE 7); AS DEFINED IN SAID SECURITY
AGREEMENTS.

<TABLE>
_______________________________________________________________            _________________________________________________________
Company Name                                                               Company's Authorized Signature
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                    <C>
BANK USE ONLY (4-7-93)
Received by:_______________________________________________________          Transmittal:___________________________________________

Obligat #:  _______________________________________________________        Date Reviewed:___________________________________________

 Customer:  _______________________________________________________    Reviewer Initials:___________________________________________
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

INELIGIBLE BREAKDOWN (Note: Company should retain a copy of this report for its
records)

                      Customer Name
                                    --------------------------------------------

                         Aging Date
                                    --------------------------------------------

LIST TOTAL LESS THAN 90 DAYS FOR EACH CATEGORY(S) AND THE GRAND TOTAL OF OVER 90
DAY ACCOUNTS. USE SPACE BELOW TO ITEMIZE LISTED CATEGORY(S) AS NEEDED.

<TABLE>
<S>                                                                          <C>
FEDERAL GOVERNMENT A/R (1)                                                   FOREIGN A/R (2)
                                    -------------------------------------                        -----------------------------------

ADD OLD CREDIT (8)                                                           CONTRA ACCOUNTS (3)
                                    -------------------------------------                        -----------------------------------

FINANCE OR SERVICE CHARGES                                                   AFFILIATES (4)
                                    -------------------------------------                        -----------------------------------

RETENTIONS & BONDED JOBS                                                     CONCENTRATIONS (6)
                                    -------------------------------------                        -----------------------------------
(billed and unbilled restrictions and A/R from jobs from which are bonded are
not eligible)

OVER 90+ DAYS FROM INVOICE                                                   OTHER (SPECIFY) (7)
                                    -------------------------------------                           --------------------------------
25 % RULE (5)
                                    -------------------------------------
</TABLE>

INELIGIBLE GRAND TOTAL     **                                                 ..
                           -----------------------------------------------------
                                        (transfer to line 7 on front)

<TABLE>
<CAPTION>
            -----------------------------  -----------------------------  ----------------------------  ----------------------------
                     CATEGORY                        CATEGORY                       CATEGORY                       CATEGORY

       <S>                                 <C>                            <C>                           <C>
       1.
            -----------------------------  -----------------------------  ----------------------------  ----------------------------
       2.
            -----------------------------  -----------------------------  ----------------------------  ----------------------------
       3.
            -----------------------------  -----------------------------  ----------------------------  ----------------------------
       4.
            -----------------------------  -----------------------------  ----------------------------  ----------------------------
       5.
            -----------------------------  -----------------------------  ----------------------------  ----------------------------
       6.
            -----------------------------  -----------------------------  ----------------------------  ----------------------------
       7.
            -----------------------------  -----------------------------  ----------------------------  ----------------------------
       8.
            -----------------------------  -----------------------------  ----------------------------  ----------------------------
       9.
            -----------------------------  -----------------------------  ----------------------------  ----------------------------
       10.
            -----------------------------  -----------------------------  ----------------------------  ----------------------------

       TOTAL
            -----------------------------  -----------------------------  ----------------------------  ----------------------------
</TABLE>

To the best of my knowledge and belief, this information is correct and may be
relied upon by you as a basis for advancing any credit to us.

-------------------------------------------------
             CUSTOMER SIGNATURE

Notes:
     (1) Federal Government A/R - Customers that are pact of the Federal
         Government. This does not include state or local governments.
         Assignments of claim must be filed to include the receivables as
         eligible collateral, if they exceed $1,000.

     (2) Foreign A/R - includes any customer char is located outside of the
         United States. This includes foreign affiliates or divisions of
         domestic corporations. The originating locations of obligor purchase
         argue and payments remitted by than are the determining factors when
         labeling the obligor as a foreign account. Such A/R is not eligible
         unless backed by a confirmed L/C or by appropriate insurance with
         documentation acceptable to Comerica Bank-California.

     (3) Contra Accounts - Contras exist when there is a liability owing to a
         customer on your accounts receivable aging. A good way to reveal contra
         accounts is to compare the accounts receivable aging and accounts
         payable aging for like accounts at each month end.

     (4) Affiliate Accounts - An accounts receivable account in which you have a
         material interest is an affiliate account. Employee accounts, salesman
         accounts and related company accounts are all examples of affiliate
         accounts.

     (5) 25% Rule - If over 25% of the total for this customer is over 90 days,
         this will eliminate the customer entirely. Look down the Priors column
         (90 day) for outstanding dollars, when you reach a figure, mentally
         quadruple it. Compare to the total outstanding for that customer. If
         greater than total the account would be eliminated. Continue this
         process throughout the aging.

     (6) Concentrations - There is a concentration clause in every loan and
         security agreement. Based on your concentration allowance (usually 20%
         of total A/R) determine what would be ineligible by multiplying the
         coral A/R by 20% or whatever the percent allowed is. If any customer
         exceeds this amount, the excess is ineligible (less any portion is the
         priors or mention column) unless approved by Comerica Bank-California.

     (7) Other - Progress billings, service (maintenance) contracts,
         commissions, container receivables, non-trade receivables, Chapter 11
         receivables, any invoices (e.g. COD, cash account and miscellaneous)
         for which customer signed documentation is not available (verifying
         that shipment was received of services were provided).

<PAGE>

                                    EXHIBIT E

                         FORM OF COMPLIANCE CERTIFICATE

          Pursuant to Section 7.7 of that certain Amended and Restated
Revolving Loan and Security Agreement (the "Loan Agreement") dated as of
__________ by and between WOOD ALLIANCE, S.P. INC. d/b/a Wood Associates, a
California corporation ("Borrower"), and COMERICA BANK-CALIFORNIA, ("Bank"), the
undersigned, ____________________ of the Borrower, hereby certifies as follows
(each of the capitalized terms used herein without definition shall having the
meaning set forth in the Loan Agreement):

          1.    Attached hereto are calculations for [month] demonstrating that
the Borrower is in compliance with Article VIII of the Loan Agreement.

          2.    No Default or Event of Default exists or has existed during the
aforementioned period./1/

The undersigned certifies that s/he has read the conditions, definitions and
other provisions contained in the Loan Agreement and Loan Documents, and that,
in his opinion, he has made or caused to be made such examination or
investigation as is necessary to enable him to express an informed opinion with
respect to the matters contained in this Certificate.

Dated: ____________________

                                         WOOD ALLIANCE, S.P. INC.,
                                         a California corporation

                                         By:
                                             -----------------------------------

                                         Name:
                                               ---------------------------------

                                         Title:
                                                --------------------------------

                                         By:         /s/ James D. Childers
                                             -----------------------------------

                                         Name:          James D. Childers
                                               ---------------------------------

                                         Title: Exec. Vice President/Secretary
                                                --------------------------------
----------
     /1/  If a Default or Event of Default exists or has existed during the
aforementioned period, then the nature, period of existence, and actions taken
by Borrower or its applicable Subsidiary with respect thereto shall be attached
hereto as an Exhibit and be in form and substance satisfactory to Bank.

<PAGE>

                            REAFFIRMATION OF GUARANTY

TO:      COMERICA BANK-CALIFORNIA ("Bank")

          JAMES D. CHILDERS, an individual ("Guarantor") hereby acknowledges and
agrees that Guarantor has read and is familiar with, and hereby consents to, all
of the terms and conditions of that certain Amended and Restated Revolving Loan
and Security Agreement dated the date hereof (the "Amended Loan Agreement") by
and between Wood Alliance, S.P. Inc d/b/a Wood Associates, Inc. ("Borrower") and
Bank, and all of the agreements and documents referred to therein, and
specifically consents to the financial accommodations extended and to be
extended by Bank to Borrower as set forth in the Amended Loan Agreement, and in
said agreements and documents. Guarantor hereby confirms and agrees that all of
the terms and provisions of Guarantor's Guaranty dated September 5, 1995
(hereinafter referred to as the "Guaranty"), are hereby ratified and confirmed,
and shall continue in full force and effect as the guaranty of the Obligations
(as the term "Obligations" is defined in the Guaranty) of Borrower to Bank,
however evidenced.

          Although Bank has informed Guarantor of the Amended Loan Agreement,
and Guarantor has acknowledged having read the same and consented to all of the
terms and conditions thereof, Guarantor understands and agrees that Bank has no
duty under any agreement with Borrower, the Guaranty or any agreement with
Guarantor to so notify Guarantor or to seek such an acknowledgment and consent,
and nothing contained herein is intended to, or shall create such a duty as to
any advances or transactions hereafter.

Dated:  January 31, 2000

                                           /s/ James D. Childers
                                   ---------------------------------------------
                                   James D. Childers, an individual

<PAGE>

                            REAFFIRMATION OF GUARANTY

TO:      COMERICA BANK-CALIFORNIA ("Bank")

          MONTE D. WOOD, an individual ("Guarantor") hereby acknowledges and
agrees that Guarantor has read and is familiar with, and hereby consents to, all
of the terms and conditions of that certain Amended and Restated Revolving Loan
and Security Agreement dated the date hereof (the "Amended Loan Agreement") by
and between Wood Alliance, S.P. Inc d/b/a Wood Associates, Inc. ("Borrower") and
Bank, and all of the agreements and documents referred to therein, and
specifically consents to the financial accommodations extended and to be
extended by Bank to Borrower as set forth in the Amended Loan Agreement, and in
said agreements and documents. Guarantor hereby confirms and agrees that all of
the terms and provisions of Guarantor's Guaranty dated September 5, 1995
(hereinafter referred to as the "Guaranty"), are hereby ratified and confirmed,
and shall continue in full force and effect as the guaranty of the Obligations
(as the term "Obligations" is defined in the Guaranty) of Borrower to Bank,
however evidenced.

          Although Bank has informed Guarantor of the Amended Loan Agreement,
and Guarantor has acknowledged having read the same and consented to all of the
terms and conditions thereof, Guarantor understands and agrees that Bank has no
duty under any agreement with Borrower, the Guaranty or any agreement with
Guarantor to so notify Guarantor or to seek such an acknowledgment and consent,
and nothing contained herein is intended to, or shall create such a duty as to
any advances or transactions hereafter.

Dated: January 31, 2000

                                                   /s/ Monte D. Wood
                                        ----------------------------------------
                                        Monte D. Wood, an individual<PAGE>
                                                                   Exhibit 10.19

                               FIRST AMENDMENT TO

           AMENDED AND RESTATED REVOLVING LOAN AND SECURITY AGREEMENT

         This FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING LOAN AND
SECURITY AGREEMENT (this "Amendment") is entered into as of July 6, 2000 by and
between WOOD ALLIANCE, S.P. INC. d/b/a WOOD ASSOCIATES, a California corporation
("Borrower") and COMERICA BANK CALIFORNIA, a California banking corporation
("Bank").

                                    RECITALS

         A. Borrower and Bank have previously entered into that certain Amended
and Restated Revolving Loan and Security Agreement dated as of January 31, 2000
(the "Loan Agreement"), and UCC-1 Financing Statements and other documents
executed in connection therewith by Borrower and third parties, including the
Guaranties described below (collectively, the "Loan Documents").

         B. Pursuant to the Loan Agreement, Bank has made available to Borrowers
a line of credit in an amount not to exceed Ten Million and 00/100 Dollars
($10,000,000.00), on the terms and conditions set forth more completely in the
Loan Agreement ("Line of Credit").

         C. Monte D. Wood, an individual, and James D. Childers, an individual
(each a "Guarantor" and collectively the "Guarantors") have each executed
Guaranty in favor of Bank and each dated as of September 5, 1995 (the
"Guaranty"), pursuant to which Guarantors guaranteed the obligations owing to
Bank by Borrower, as set forth more completely in each of their respective
Guaranties.

         D. Borrower has requested, and Bank has agreed, to amend the Loan
Agreement pursuant to certain terms and conditions, as set forth more completely
herein.

                                    AGREEMENT

         For good and valuable consideration, receipt of which is hereby
acknowledged, the parties agree as set forth below.

         1. Incorporation by Reference; Definitions. The foregoing Loan
            ---------------------------------------
Documents and the Recitals are incorporated herein by this reference as though
set forth in full herein. Any terms not defined herein shall have the meanings
given in the Loan Documents.

         2. Modification to the Loan Agreement. The parties have agreed to the
            ----------------------------------
amendments to the Loan Agreement set forth in this Section 2.

            2.1 Amendment to Definition of "Committed Line". The definition
                -------------------------------------------
"Committed Line" is hereby amended by deleting the term "Ten Million and 00/100
Dollars

                                       1

<PAGE>

($10,000,000.00)" and replacing it with the term "Twelve Million and 00/100
Dollars ($12,000,000.00)".

         2.2 Amendment to Section 2.1(a) of the Loan Agreement. Section 2.1(a)
             -------------------------------------------------
of the Loan Agreement is hereby amended by deleting it in its entirety and
replacing it with the following:

            "(a) Borrowing Base. Borrowing Base shall mean an amount equal to
                 --------------
Ninety percent (90%) of Eligible Accounts; plus Five Hundred Thousand and 00/100
Dollars ($500,000.00), provided however that as of September 30, 2000 Borrowing
Base shall mean an amount equal to Eighty percent (80%) of Eligible Accounts;
plus Five Hundred Thousand and 00/100 Dollars ($500,000.00)."

         2.3 Amendment to Section 2.2(b) of the Loan Agreement. Section 2.2(b)
             -------------------------------------------------
of the Loan Agreement is amended by deleting the term "Two Million and 00/100
Dollars ($2,000,000.00)" and replacing it with the term "Three Million and
00/100 Dollars ($3,000,000.00)".

         2.4 Amendment to Section 2.5 of the Loan Agreement. Section 2.5 of the
             ----------------------------------------------
Loan Agreement is hereby amended by adding the following terms:

<TABLE>
<S>                                            <C>                                          <C>
 "If the Borrower's Tangible Net Worth         Base Advances shall bear interest at          COF Advances shall bear interest at
               Ratio is:                        a floating rate per annum equal to:           a fixed rate per annum equal to:
        Less than 20.00 to 1.00                         Base Rate plus 1.0%                  Bank's Cost of Funds plus 350 basis
                                                                                                           points"
</TABLE>

         2.5 Amendment to Section 2 of the Loan Agreement. Section 2 of the Loan
             --------------------------------------------
Agreement is hereby amended by adding the following new Section:

            "2.10 Documentation Fee. Borrower shall pay to Bank, on an annual
                  -----------------
basis, a Documentation Fee equal to one quarter of one percent (0.25%) of the
Committed Line."

         2.6 Amendment to Section 7.6 of the Loan Agreement. Section 7.6 of the
             ----------------------------------------------
Loan Agreement is hereby amended by adding the following language to the last
sentence: "including, updated data regarding ineligible Accounts."

         2.7 Amendment to Section 8.2 of the Loan Agreement. Section 8.2 of the
             ----------------------------------------------
Loan Agreement is amended by adding the following to the end of the section: "If
Borrower obtains new equity in an amount of at least Five Million and 00/100
Dollars ($5,000,000.00) then Borrower shall maintain, as of the last day of each
month, a Tangible Net Worth Ratio of at least 4.5 to 1.0."

                                       2

<PAGE>

Conditions Precedent. Bank's consent to the amendments set forth herein is
subject to the conditions precedent that Bank shall have received, on or before
the date of this Agreement: (a) a deed of trust on the real property commonly
known as 3073 Corvin Drive, Santa Clara, California 95051; and (b) a suretyship
rider to deed of trust, all in form and substance satisfactory to Bank and its
counsel:

         3.1 Release of Deed of Trust. Bank agrees that (a) if Borrower obtains
             ------------------------
new equity in an amount of at least Five Million and 00/100 Dollars
($5,000,000.00); or (b) if Borrower maintains a Tangible Net Worth Ratio below
4.5 to 1.0 and is in compliance with all of the financial covenants set forth in
Section 8 of the Loan Agreement for three (3) consecutive monthly financial
statements, then Bank shall release and reconvey the Deed of Trust

      4. No Modification of Other Obligations. Except as is otherwise
         ------------------------------------
specifically set forth herein, the Loan Agreement shall remain unmodified and in
full force and effect.

      5. Ratification of Obligations. Borrower ratifies and reaffirms the
         ---------------------------
Obligations, without setoff, defense, or counterclaim. Borrower agrees fully and
faithfully to pay, perform and discharge, as and when payment, performance and
discharge are due, all of the Obligations under the Loan Agreement, as amended
hereby.

      6. Conflicts. If a conflict exists between the provisions of the Loan
         ---------
Agreement and the provisions of this Amendment, the provisions of this Amendment
shall control.

      7. Ratification of Guaranties. By executing this Amendment below where
         --------------------------
indicated, each Guarantor acknowledges and agrees that it has read and is
familiar with, and consents to, all of the terms and conditions of this
Amendment and specifically consents to the financial accommodations extended and
to be extended by Bank to Borrower as set forth herein. Each Guarantor confirms
and agrees that all of the terms and provisions of his Guaranty are ratified and
reaffirmed, and that his Guaranty shall continue in full force and effect.
Although Bank has informed each Guarantor of the terms of this Amendment,
Guarantor understands and agrees that Bank has no duty whatsoever to so notify
Guarantors or to seek this or any future acknowledgment, consent, or
reaffirmation, and nothing contained herein is intended to, or shall create,
such a duty as to any transactions hereafter.

      8. Further Assurances. Borrower agrees to make and execute such other
         ------------------
documents as may be necessary or required to effectuate the terms and conditions
of this Amendment.

      9. Future Modifications. This Amendment does not entitle, or imply any
         --------------------
consent or agreement to, any further or future modification of, amendment to,
waiver of, or consent with respect to any provision of the Loan Agreement.
Neither this Amendment nor any provisions of the Loan Agreement may be changed,
waived, discharged or terminated, nor may any consent to the departure from the
terms hereof be given, orally (even if supported by new consideration), but only
by an instrument in writing signed by all parties to this Amendment.

                                       3

<PAGE>

Integration. This Amendment is an integrated agreement, and supercedes all
negotiations and agreement regarding the subject matter hereof, and taken
together with the Loan Documents, constitutes the final agreement of the parties
with respect to the subject matter hereof and thereof.

      11. Severability. In the event any one or more of the provisions contained
          ------------
in this Amendment is held to be invalid, illegal or unenforceable in any
respect, then such provision shall be ineffective only to the extent of such
prohibition or invalidity, and the validity, legality, and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby.

      12. Successors and Assigns. This Amendment shall bind and inure to the
          ----------------------
benefit of the respective successors and permitted assigns of each of the
parties; provided, however, that neither this Amendment nor any rights hereunder
may be assigned by Borrower without Bank's prior written consent, which consent
may be granted or withheld in Bank's sole discretion. Bank shall have the right
without the consent of or notice to Borrower to sell, transfer, negotiate, or
grant participation in all or any part of, or any interest in, Bank's
obligations, rights and benefits hereunder.

      13. Interpretation. This Amendment and all agreements relating to the
          --------------
subject matter hereof are the product of negotiation and preparation by and
among each party and its respective attorneys, and shall be construed
accordingly. The parties waive the provisions of California Civil Codess.1654.

      14. Counterparts. This Amendment may be signed in any number of
          ------------
counterparts, each of which shall be an original, with the same effect as if all
signatures were upon the same instrument. Delivery of an executed counterpart of
the signature page to this Amendment by telefacsimile shall be effective as
delivery of a manually executed counterpart of this Amendment, and any party
delivering such an executed counterpart of the signature page to this Amendment
by telefacsimile to any other party shall thereafter also promptly deliver a
manually executed counterpart of this Amendment to such other party, provided
that the failure to deliver such manually executed counterpart shall not affect
the validity, enforceability, or binding effect of this Amendment.

                            [signature page follows]

                                       4

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this First Amendment to
Amended and Restated Revolving Loan and Security Agreement to be executed as of
the day and year first written above.

WOOD ALLIANCE, S.P. INC.

By: /s/  Monte D. Wood
    ------------------------------------------

Title: President
       ---------------------------------------

COMERICA BANK-CALIFORNIA

  /s/  Guy Steffens
-----------------------------------------------------
By: Guy Steffens
Its: Vice President

CONSENTED TO:

  /s/  Monte D. Wood
----------------------------------
Monte D. Wood, Guarantor          James A. Childers, Guarantor

                                       5

<PAGE>

RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO:
COMERICA BANK-CALIFORNIA
COMMERCIAL REAL ESTATE LOAN OPERATIONS
75 E. TRIMBLE ROAD
SAN JOSE, CALIFORNIA  95131                           SPACE ABOVE THIS LINE FOR
                                                      RECORDER'S USE
----------------------------------------------------  --------------------------

              DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING
                      (WITH ASSIGNMENT OF RENTS AND LEASES)

      This Deed of Trust, Security Agreement and Fixture Filing (With Assignment
of Rents and Leases) is made as of this ____ day of July, 2000, by MONTE D. WOOD
and TINA WOOD, husband and wife, and JAMES A. CHILDERS, a single man
(individually and collectively, jointly and severally called "Trustor") whose
address is 3073 Corvin Drive, Santa Clara, California 95051 to FINANCIAL TITLE
COMPANY, a corporation (hereinafter called "Trustee"), whose address is 701
Miller Street, San Jose, California 95110 for the benefit of COMERICA
BANK-CALIFORNIA, a California Banking Corporation (hereinafter called
"Beneficiary"), whose address is 75 East Trimble Road, San Jose, California
95131.

      WITNESSETH: That Trustor IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to
Trustee, its successors and assigns, in Trust, with POWER OF SALE TOGETHER WITH
RIGHT OF ENTRY AND POSSESSION the following property (the "Trust Estate"):

      (a) all that certain real property now or hereafter acquired, in the City
of Santa Clara, County of Santa Clara, State of California (the "Land"), more
particularly described as follows:

            See Exhibit "A" attached hereto

      (b) all buildings, structures and other improvements now or in the future
located or to be constructed on the Land (the "Improvements");

      (c) all tenements, hereditaments, appurtenances, privileges, franchises
and other rights and interests now or in the future benefitting or otherwise
relating to the Land or the Improvements, including easements, rights way,
development rights, mineral rights, water and water rights, pumps and pumping
plants and all shares of stock evidencing the same (the "Appurtenances," and
together with the Land and the Improvements, the "Real Property");

      (d) subject to the assignment to Beneficiary set forth in Paragraph 1l
below, all rents, issues, income, revenues, royalties and profits now or in the
future payable with respect to or otherwise derived from the Trust Estate or the
ownership, use, management, operation, leasing or occupancy of the Trust Estate,
including those past due and unpaid (the "Rents");

      (e) all present and future right, title and interest of Trustor in and to
all inventory, equipment, fixtures and other goods (as those terms are defined
in Division 9 of the California Uniform Commercial Code (the "UCC"), and whether
existing now or in the future) now or in the future located at, upon or about,
or affixed or attached to or installed in, the Real Property, or used or to be
used in connection with or otherwise relating to the Real Property or the
ownership, use, development, construction, maintenance, management, operation,
marketing, leasing or occupancy of the Real Property, including furniture,
furnishings, machinery, appliances,

                                       1

<PAGE>

building materials and supplies, generators, boilers, furnaces, water tanks,
heating, ventilating and air conditioning equipment and all other types of
tangible personal property of any kind or nature, and all accessories,
additions, attachments, parts, proceeds, products, repairs, replacements and
substitutions of or to any of such property (the "Goods," and together with the
Real Property, the "Property"); and

      (f) all present and future right, title and interest of Trustor in and to
all accounts, general intangibles, chattel paper, deposit accounts, money,
instruments and documents (as those terms are defined in the UCC) and all other
agreements, obligations, rights and written materials (in each case whether
existing now or in the future) now or in the future relating to or otherwise
arising in connection with or derived from the Property or any other part of the
Trust Estate or the ownership, use, development, construction, maintenance,
management, operation, marketing, leasing, occupancy, sale or financing of the
Property or any other part of the Trust Estate, including (to the extent
applicable to the Property or any other portion of the Trust Estate) (i)
permits, approvals and other governmental authorizations, (ii) improvement plans
and specifications and architectural drawings, (iii) agreements with
contractors, subcontractors, suppliers, project managers, supervisors,
designers, architects, engineers, sales agents, leasing agents, consultants and
property managers, (iv) takeout, refinancing and permanent loan commitments, (v)
warranties, guaranties, indemnities and insurance policies (whether or not
required to be carried by Trustor pursuant to the terms hereof), together with
insurance payments and unearned insurance premiums, (vi) claims, demands,
awards, settlements and other payments arising or resulting from or otherwise
relating to any insurance (whether or not Beneficiary is named as a loss payee
of such insurance) or any loss or destruction of, injury or damage to, trespass
on or taking, condemnation (or conveyance in lieu of condemnation) or public use
of any of the Property, (vii) license agreements, service and maintenance
agreements, purchase and sale agreements and purchase options, together with
advance payments, security deposits and other amounts paid to or deposited with
Trustor under any such agreements, (viii) reserves, deposits, bonds, deferred
payments, refunds, rebates, discounts, cost savings, escrow proceeds, sale
proceeds and other rights to the payment of money, trade names, trademarks,
goodwill and all other types of intangible personal property of any kind or
nature, and (ix) all supplements, modifications, amendments, renewals,
extensions, proceeds, replacements and substitutions of or to any of such
property (the "Intangibles").

      Trustor further grants to Trustee and Beneficiary, pursuant to the UCC, a
security interest in all present and future right, title and interest of Trustor
in and to all Goods and Intangibles and all of the Trust Estates described above
in which a security interest may be created under the UCC (collectively, the
"Personal Property"). This Deed of Trust constitutes a security agreement under
the UCC, conveying a security interest in the Personal Property to Trustee and
Beneficiary. Trustee and Beneficiary shall have, in addition to all rights and
remedies provided herein, all the rights and remedies of a "secured party" under
the UCC and other applicable California law. Trustor covenants and agrees that
this Deed of Trust constitutes a fixture filing under Section 9313 and 9402(6)
of the UCC.

      FOR THE PURPOSE OF SECURING, in such order of priority as Beneficiary may
elect, (1) payment to Beneficiary and performance by WOOD ALLIANCE, S.P. INC.
d/b/s WOOD ASSOCIATES (the "Borrower") of all obligations of Borrower arising
under that certain Amended and Restated Revolving Loan and Security Agreement
dated January 31, 2000 by and between Borrower and Beneficiary and any and all
modifications, extensions or renewals thereof, (the "Loan Documents"); (2)
payment of all other sums, with interest as herein provided, becoming due or
payable under the provisions hereof to Trustee or Beneficiary; (3) due, prompt
and complete observance, performance and discharge of each and every condition,
obligation, covenant and agreement contained heroin; and (4) payment of such
additional sums with interest which are by the terms thereof secured by this
Deed of Trust.

      TO PROTECT AND MAINTAIN THE SECURITY OF THIS DEED OF TRUST, TRUSTOR
AGREES:

      (4) To pay, perform, observe and discharge each and every condition,
obligation, covenant and agreement for which this Deed of Trust has been given
as security as provided above.

                                       2

<PAGE>

      (5) To keep the Property in good condition and repair; not to remove or
demolish any improvement thereon; to complete or restore promptly and in good
and workmanlike manner any improvement which may be constructed, damaged or
destroyed thereon and to pay when due all claims for labor performed and
materials furnished therefor; to comply with all laws affecting the Trust Estate
or requiring any alterations or improvements to be made thereon; not to commit
or permit waste thereof; to perform, in the event all or any portion of the
Trust Estate constitutes a leasehold estate belonging to Trustor, each and every
obligation of Trustor under the terms of the lease agreement relating to the
demise of such property; not to commit, suffer or permit any act upon the Trust
Estate in violation of law; to do all acts which from the character or use of
the Property may be reasonably necessary, the specific enumerations herein not
excluding the general.

      (6) To fully insure, or cause to be insured, the Property against loss or
damage by fire, earthquake, flood, and such other risks as Beneficiary shall,
from time to time, require. Trustor shall carry public liability and other
insurance as Beneficiary may require. Trustor shall maintain all required
insurance in companies, amounts, coverages, deductibles, and forms satisfactory
to the Beneficiary and at least equal to that required on the date of this Deed
of Trust. Such insurance shall be carried in amounts not less than amounts
determined by the insurance company or Beneficiary to prevent the application of
co-insurance or similar clauses, or in such greater amounts as Beneficiary may
require. Neither Beneficiary nor Trustee, by reason of accepting, rejecting,
approving or obtaining insurance, shall incur any liability for (i) the
existence, nonexistence, form or legal sufficiency thereof, (ii) the solvency or
insolvency of any insurer, or (iii) the payment of losses. All property
insurance policies shall name Beneficiary as the primary loss payee, all
liability insurance policies shall name Beneficiary as an additional insured,
and all policies shall provide that they cannot be terminated as to Beneficiary
except upon thirty (30) days' prior written notice to Beneficiary. Trustor shall
deliver to Beneficiary the original of all such policies, or with Beneficiary's
consent certificates, together with receipts satisfactory to the Beneficiary,
evidencing payment of the premiums therefor. Should Trustor fail to insure or
fail to pay the premiums on any required insurance or fail to deliver the
policies or renewals of them as provided above, Beneficiary may (but is not
obligated to) have the insurance issued or renewed (and pay the premiums on it
for the account of Trustor) in amounts and with companies and at premiums as
Beneficiary deems appropriate. If Beneficiary elects to have insurance issued or
renewed to insure Beneficiary's interest, Beneficiary shall have no obligation
to also insure Trustor's interest or to notify Trustor of Beneficiary's actions.
All sums advanced by Beneficiary to pay premiums on insurance policies which
Trustor is required to maintain hereunder shall be due and payable by Trustor to
Beneficiary upon demand, and failing prompt reimbursement, shall be added to the
indebtedness secured by this Deed of Trust and earn interest at the default rate
set forth in the note secured hereby until paid in full.

      As of the date this Deed of Trust is recorded and continuously until this
Deed of Trust is fully reconveyed, the insurance policies shall conform to the
following requirements:

         (a) All insurance policies must be underwritten by insurers with a
Best's rating of B+, VI or better;

         (b) In the event all or any portion of the Real Property secured by
this Deed of Trust constitutes rental or non-residential property, Trustor shall
maintain a Commercial General Liability insurance policy, including broad form
coverages or their equivalents, with One Million Dollars ($1,000,000) combined
single limit coverage for bodily injury and property damage; provided, however,
if improvements similar to the Improvements secured hereby are generally insured
at higher limits of coverage, such higher limits shall be obtained. In all other
cases, Trustor shall maintain such liability insurance coverages as Beneficiary
may require from time to time;

         (c) Trustor shall provide, as required by Beneficiary, additional
property and rental income insurance coverages as follows:

         1. All risk coverage (including earthquake insurance) in the amount of
the full replacement cost of the Improvements;

                                       3

<PAGE>

         2. A waiver of co-insurance endorsement or agreed value endorsement
(relative to casualty);

         3. A replacement cost coverage endorsement (relative to casualty);

         4. A standard mortgage clause (438BFU or CPl2-l8) with Beneficiary
named as loss payee in the Declarations;

         5. A waiver of subrogation clause;

         6. To the extent that any portion of the Real Property constitutes
rental property, loss of rents coverage in an amount equal to at least twelve
(12) months of rentals from the Real Property secured hereby and any expenses
that are payable or reimbursable by tenants;

         7. Flood insurance in an amount sufficient to provide full replacement
cost coverage of the Real Property in the event the Real Property is located
within any flood hazard area; and

         8. Such other coverages as Beneficiary may request from time to time.

The amount collected under any fire or other insurance policy maintained by
Trustor with respect to the Property (whether or not required hereunder and
whether or not Beneficiary is named as loss payee) may be applied by Beneficiary
upon any indebtedness secured hereby and in such order as Beneficiary may
determine, or at option of Beneficiary the entire amount so collected or any
part thereof may be released to Trustor. Such application or release shall not
cure or waive any default or notice of default hereunder or invalidate any act
done pursuant to such notice.

         (4) To appear in and defend any action or proceeding purporting to
affect the security hereof or the rights or powers of Beneficiary or Trustee;
and to pay all costs and expenses, including cost of evidence of title and
attorney's fees in a reasonable sum, in any such action or proceeding in which
Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to
foreclose this Deed of Trust.

         (5) To pay and discharge, at least ten days prior to delinquency, all
taxes of every kind and nature, including real and personal property taxes and
income, franchise, withholding, profits and gross receipts taxes, all general
and special assessments, including assessments on appurtenant water stock,
levies, permits, inspection and license fees, all water and sewer rents and
charges, and all other public charges whether of a like or different nature,
imposed upon or assessed against Trustor or the Trust Estate or any part thereof
or upon the revenues, rents, issues, income and profits thereof or upon this
Deed of Trust or the indebtedness now or hereafter secured hereby; when due, all
encumbrances, charges and liens, with interest, on the Trust Estate or any part
thereof, which appear to be prior or superior hereto or subject or subordinate
hereto; all costs, fees and expenses of this Trust; or, if and as required by
Beneficiary, to pay to Beneficiary in equal installments on the day on which
monthly payments of principal and interest are due under said note, sufficient
funds (as estimated by Beneficiary from time to time) to pay when due the next
maturing taxes, assessments and hazard insurance (including flood insurance, if
required) premiums. When so provided with sufficient funds, Beneficiary shall
pay such taxes, assessments and hazard insurance premiums before delinquency.
Any excess over the amount required for such purposes shall be held for future
use, applied to any indebtedness hereby secured or refunded to Trustor at
Beneficiary's option.

         To promptly and completely observe, perform, and discharge each and
every condition, obligation, covenant and agreement affecting the Trust Estate,
whether the same is prior and superior or subject and subordinate hereto
including, if the security hereunder is or will be a condominium, community
apartment or part of a planned development, each and every provision to be
performed by Trustor under any Declaration of Covenants, Conditions and
Restrictions pertaining to the condominium, community apartment or planned
development project and, upon written request of Beneficiary, to pay maintenance
charges, if the same have not been paid or legal steps have not been initiated
to enforce such payment within ninety (90) days after such written request is
made.

                                       4

<PAGE>

         Should Trustor fail to make any payment or to do any act as herein
provided, then Beneficiary or Trustee, but without obligation so to do and
without notice to or demand upon Trustor and without releasing Trustor from any
obligation hereof, may: make or do the same in such manner and to such extent as
either may deem necessary to protect the security hereof, Beneficiary or Trustee
being authorized to enter upon the Real Property for such purposes; appear in
and defend any action or proceeding purporting to affect the security hereof or
the rights or powers of Beneficiary or Trustee; pay, purchase, contest or
compromise any encumbrance, charge or lien which in the judgment of either
appears to be prior or superior hereto; and, in exercising any such powers, pay
necessary expenses, employ counsel and pay reasonable attorneys' fees and costs
in connection therewith.

         (6) To pay immediately and without demand all sums so expended by
Beneficiary or Trustee, with interest from date of expenditure until paid in
full by Trustor at a rate equal to five percent (5%) per annum over and above
the rate set forth in the promissory note secured hereby, which sums shall be
secured by this Deed of Trust to the same extent and with the same priority as
the principal and interest payable under the promissory note hereby secured, and
such sums shall be deemed mandatory advances required for the preservation and
protection of the lien of this Deed of Trust and Trustee's and Beneficiary's
rights hereunder.

         (7) That any award of damages in connection with any condemnation for
public use of or injury to the Property or any part thereof is hereby assigned
and shall be paid to Beneficiary who may apply or release such moneys received
by him in the same manner and with the same effect as above provided for
disposition of proceeds of fire or other insurance. Notwithstanding the fact
that the security given hereby may not be impaired by a partial condemnation,
Beneficiary, in its sole and absolute discretion, shall have the right to apply
all compensation, award or other payments or relief therefor made on account
thereof to either the payment of accrued but unpaid interest and second to the
prepayment of principal under said promissory note or reimbursement of Trustor
for expenses incurred by it in the restoration of the Property, and in respect
thereto, Trustor hereby waives the benefit of any statute or rule of law which
may be contrary thereto.

         (8) That by accepting the payment, performance or observance of any
condition, obligation, covenant or agreement contained herein after the date to
be paid, performed or observed as provided hereunder, Beneficiary does not waive
its right either to require prompt payment, performance or observance when due
of all other conditions, obligations, covenants or agreements contained herein
or to declare a default for failure so to do.

         (9) That at any time or from time to time, without liability therefor
and without notice, upon written request of Beneficiary and presentation of this
Deed of Trust and said note for endorsement, and without affecting the personal
liability of any person for payment of the indebtedness secured hereby, Trustee
may: reconvey any part of the Trust Estate; consent to the making of any map or
plat thereof; join in granting any easement thereon; join in the execution of or
subordination of the lien or charge hereof to any covenants, conditions or
restrictions affecting said property; or join in any extension agreement or any
agreement subordinating the lien or charge hereof.

         (10) That upon written request of Beneficiary stating that all sums
secured hereby have been paid, and upon surrender of this Deed of Trust and said
note to Trustee for cancellation and retention and upon payment by Trustor of
its fees, Trustee shall reconvey, without warranty, the Trust Estate then held
hereunder. The recitals in such reconveyance of any matters or facts shall be
conclusive proof of the truthfulness thereof. The grantee in such reconveyance
may be described as "the person or persons legally entitled thereto."

         (11) That Trustor absolutely and unconditionally hereby assigns,
transfers, conveys and sets over to Beneficiary all the Rents; provided,
however, prior to any default by Trustor in the payment, observance, performance
and discharge of any condition, obligation, covenant or agreement of Trustor
contained herein, Trustor shall have the right as the agent and fiduciary
representative of Beneficiary for collection and distribution purposes only, to
collect and receive the Rents as they become due and payable to be applied by
Trustor to the payment of the principal and interest and all other sums due or
payable on said promissory note and to the payment of all other sums payable
under this Deed of Trust and, thereafter, so long as no default as aforesaid has
occurred, the balance shall be distributed to the account of Trustor. Upon any
such default, Beneficiary may at any

                                       5

<PAGE>

time without notice, either in person, by agent or by a receiver to be appointed
by a court, and without regard to the adequacy of any security for the
indebtedness hereby secured, enter upon and take possession of the Property or
any part thereof, in its own name or in the name of Trustor, sue for or
otherwise collect the Rents, including those past due and unpaid and apply the
same, less costs and expenses of operation and collection, including reasonable
attorneys' fees and expenses, to the payment of the principal and interest and
all other sums due or payable on said promissory note and to the payment of all
other sums payable under this Deed of Trust and in such order as Beneficiary may
determine. The entering upon and taking possession of the Property, the
collection of the Rents and the application thereof as aforesaid, shall not cure
or waive any default or notice of default hereunder or invalidate any act done
pursuant to such notice.

         All leases and rental agreements now or hereafter affecting the Real
Property, including all oil and gas leases and other subsurface leases and the
royalties derived therefrom, are hereby assigned and transferred to Beneficiary
by the Trustor, and Trustor hereby agrees and covenants that none of said leases
or rental agreements will be modified or terminated without the consent in
writing of Beneficiary. Trustor shall provide to Beneficiary a non-disturbance
and attornment agreement, in form acceptable to Beneficiary, executed by each
tenant under a lease or rental agreement for a portion of said Real Property
executed after the date hereof.

         Trustor agrees that it will not (a) execute any further assignment of
any of its right, title and interest in the Rents without the prior written
consent of Beneficiary; (b) accept prepayments of any installments of Rents to
become due under any leases or rental agreements in excess of one (1) month
except prepayments in the nature of security which security will not exceed an
amount equal to one (1) month's rent under the lease or rental agreement; (c)
with respect to any lease or rental agreement having a term of two (2) years or
more, Trustor will not terminate, amend or modify any such lease or rental
agreement without the prior written consent of the Beneficiary or (d) accept a
surrender of any such lease or rental agreement.

         (12) Trustor hereby represents, warrants and covenants that:

         (a) Neither the Real Property which is the subject of this Deed of
Trust nor any other real property occupied and/or owned by Trustor has ever been
used by Trustor or any other previous owner and/or operator in connection with
the disposal of or to refine, generate, manufacture, produce, store, handle,
treat, transfer, release, process or transport flammable explosives, radioactive
materials, asbestos, PCB, hazardous wastes, toxic substances or related
materials, including, without limitation, any substances defined as or included
in the definition of "hazardous substances," "hazardous wastes," "hazardous
materials," or "toxic substances" under any Hazardous Materials Laws (defined
below) (collectively, "Hazardous Materials"), and Trustor will not at any time
use the Real Property or such other real property for the disposal, refining,
generating, manufacturing, producing, storing, handling, treating, transferring,
releasing, processing or transporting of any Hazardous Materials.

         (b) After diligent investigation including, but not limited to,
engineering reports and an environmental assessment report provided to
Beneficiary, Trustor warrants and represents that the Real Property is free of
Hazardous Materials and contaminants which are or could be detrimental to the
Real Property, human health or the environment or in violation of any
governmental taws or regulations.

         (c) Neither the Real Property or any other real property owned and/or
occupied by Trustor has been designated, listed or identified in any manner by
the United States Environmental Protection Agency ("EPA") or under and pursuant
to the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended, set forth at 42 U.S.C. 9601 et seq. ("CERCLA"), the Resource
Conservation and Recovery Act of 1986, as amended, set forth at 42 U.S.C. 6901
et seq. ("RCRA"), or any other environmental protection statute as a hazardous
waste or hazardous substance disposal or removal site, superfund or cleanup site
or candidate for removal of closure pursuant to RCRA, CERCLA or any other
environmental protection statute.

         (d) Trustor has not received a notice, summons, citation, directive,
letter or other communication, written or oral (collectively, "Notice") from the
EPA or any other federal or state governmental agency or instrumentality,
authorized pursuant to an environmental protection statute, concerning any
intentional or unintentional action or omission by Trustor resulting in the
releasing, spilling, leaking, pumping, pouring, emitting,

                                       6

<PAGE>

emptying, dumping or otherwise disposing of Hazardous Materials into the
environment resulting in damage thereto or to the fish, shellfish, wildlife,
biota or other natural resources.

         Trustor shall, and shall cause all tenants, employees, agents,
contractors and subcontractors of Trustor and any other persons present on or
occupying the Real Property to, keep and maintain the Real Property, including
the soil and groundwater thereof, in compliance with, and not cause or permit
the Real Property, including the soil and groundwater thereof, to be in
violation of, any federal, state or local laws, ordinances or regulations
relating to industrial hygiene or to the environmental conditions thereon,
including but not limited to any Hazardous Materials Laws. Neither Trustor nor
tenants, employees, agents, contractors and subcontractors of Trustor nor any
other persons occupying or present on the Real Property shall use, generate,
manufacture, store or dispose of on, under or about the Real Property or
transport to or from the Real Property any Hazardous Materials.

         The intended use of the Real Property is for a business purpose
("Permitted Use") and Trustor shall not change or alter the Permitted Use unless
Trustor shall have first notified Beneficiary thereof in writing and Beneficiary
shall have determined, in its sole and absolute discretion, that such change or
modification will not result in the presence of Hazardous Materials on the Real
Property in such a level that would increase the potential liability for
Hazardous Materials Claims.

         Trustor shall immediately advise Beneficiary in writing of: (a) any
Notices (whether such Notices are received from the EPA, the Occupational Safety
and Health Agency, the Department of Health Services, the State Water Quality
Control Board, the Department of Sanitation, the Department of Public Works or
any other federal, state or local governmental agency or regional office
thereof) of violation or potential violation which are received by Trustor of
any applicable federal, state or local laws, ordinances or regulations relating
to any Hazardous Materials, including but not limited to CERCLA, RCRA, the
Hazardous Materials Transportation Act, the Hazardous Substances Account Act,
the Hazardous Substances Act, the Occupational Health and Safety Act, the
Porter-Cologne Water Quality Control Act, the Solid Waste Management Act of
1980, the Toxic Pit Cleanup Act. the Underground Tank Act of 1984, and the
California Water Quality Improvement Act (collectively, "Hazardous Materials
Laws"); (b) any and all enforcement, cleanup, removal or other governmental or
regulatory actions instituted, completed or threatened pursuant to any Hazardous
Materials Laws; (c) all claims made or threatened by any third party against
Trustor or the Trust Estate relating to damage, contribution, cost recovery
compensation, loss or injury resulting from any Hazardous Materials (the matters
set forth in clauses (a), (b) and (c) above are collectively referred to herein
as "Hazardous Materials Claims"); and (d) Trustor's discovery of any occurrence
or condition on any real property adjoining or in the vicinity of the Real
Property that could cause the Real Property or any part thereof to be classified
as "border zone property" under the provisions of California Health and Safety
Code, Sections 25220 et seq., or any regulation adopted in accordance therewith,
or to be otherwise subject to any restrictions on the ownership, occupancy,
transferability or use of the Real Property under any Hazardous Materials Laws.

         To the extent Beneficiary has a reasonable basis to believe its
security for the Loan is or might be impaired by any Hazardous Materials Claims
or in the event of any default hereunder or under any other Loan Document,
Beneficiary shall have the right but not the obligation to join and participate
in, as a party if it so elects, any legal proceedings or actions initiated in
connection with any Hazardous Materials Claims and to have its reasonable
attorneys' and consultants' fees in connection therewith paid by Trustor upon
demand.

         Trustor shall be solely responsible for, and shall indemnify and hold
harmless Beneficiary, its directors, officers, employees, agents, successors and
assigns, from and against any loss, damage, cost, expense or liability directly
or indirectly arising out of or attributable to the use, generation, storage,
release, threatened release, discharge, disposal or presence (whether prior to
or during the term of the Loan) of Hazardous Materials on, under or about the
Real Property (whether by Trustor or a predecessor in title or any employees,
agents, contractor or subcontractors of Trustor, or any predecessor in title,
any third persons at any time occupying or present on the Real Property, or from
any other cause whatsoever), including, without limitation: (a) all foreseeable
and unforeseeable consequential damages including third party claims; (b) the
costs of any required or necessary repair, cleanup or detoxification of the Real
Property, including the soil and groundwater thereof, and the

                                       7

<PAGE>

preparation and implementation of any closure, remedial or other required plans;
(c) damage to any natural resources; and (d) all reasonable costs and expenses
incurred by Beneficiary in connection with clauses (a), (b) and (c), including
but not limited to reasonable attorneys' and consultants' fees.

         Any costs or expenses incurred by Beneficiary for which Trustor is
responsible or for which Trustor has indemnified Beneficiary shall be paid to
Beneficiary on demand, and failing prompt reimbursement, shall be added to the
indebtedness secured by this Deed of Trust and earn interest at the default rate
set forth in the note secured hereby until paid in full.

         Trustor shall not undertake any cleanup, containment, restoration,
removal or other remedial work (collectively, "Remedial Work") in response to
the presence of any Hazardous Materials on, under or about the Real Property
without prior written notice to Beneficiary of the scope and nature of such
Remedial Work; provided, however, that prior written notice shall not be
necessary in the event that the presence of Hazardous Materials on, under or
about the Real Property either poses an immediate threat to the health, safety
or welfare of any individual or is of such a nature that an immediate remedial
response is necessary and it is not possible to notify Beneficiary before taking
such action. In such event, Trustor shall notify Beneficiary as soon as
practicable of any action so undertaken. Trustor shall not, without
Beneficiary's prior written consent, which shall not be unreasonably withheld,
enter into any settlement agreement, consent decree or other compromise in
respect to any Hazardous Material Claims, which remedial action, settlement,
consent or compromise might, in Beneficiary's reasonable judgment, impair the
value of Beneficiary's security hereunder.

         In the event any investigation or monitoring of conditions on the Real
Property or any Remedial Work is required under any applicable Hazardous
Materials Laws, by any judicial order, by any governmental entity, or in order
to comply with any agreements affecting the Real Property because of or in
connection with any Hazardous Material Claims, Trustor shall perform or cause to
be performed the Remedial Work in compliance with such Hazardous Material Laws
or agreement. All Remedial Work shall be performed by one or more contractors,
selected by Trustor and approved in advance in writing by Beneficiary, and under
the supervision of a consulting engineer, selected by Trustor and approved in
writing by Beneficiary. All costs and expenses of such Remedial Work shall be
paid by Trustor, including, without limitation, the charges of such contractors
and/or the consulting engineer, and Beneficiary's reasonable attorneys' fees and
costs incurred in connection with monitoring or reviewing such Remedial Work. In
the event Trustor shall fail to timely commence or cause to be commenced, or
fail to diligently prosecute to completion, such Remedial Work, Beneficiary may,
but shall not be required to, cause such Remedial Work to be performed, and all
costs and expenses thereof shall be due and payable upon demand therefor by
Trustor.

         If during the term of the loan secured by this Deed of Trust
Beneficiary has reasonable cause to believe that Hazardous Materials have
migrated onto the Real Property or have otherwise come onto the Real Property in
violation of the terms of this Deed of Trust or there has been a default by
Trustor hereunder with respect to Hazardous Materials, at Beneficiary's request,
Trustor shall retain, at Trustor's sole cost and expense, a licensed geologist,
industrial hygienist or an environmental consultant (a "Consultant") acceptable
to Beneficiary to conduct an environmental site assessment of the Real Property
for the presence of Hazardous Materials ("Environmental Audit"). The
Environmental Audit shall be performed in a manner reasonably calculated to
discover the presence of Hazardous Materials contamination. The Consultant shall
concurrently deliver the results of its investigation in writing directly to
Trustor and Beneficiary without prior consultation with either party unless
conducted in the presence of the other party.

         If Trustor fails to pay for or obtain an Environmental Audit as
provided for herein, Beneficiary may, but shall not be obligated to, obtain the
Environmental Audit, and either demand reimbursement from Trustor or add the
cost thereof to the indebtedness secured by this Deed of Trust, in which case
interest shall accrue on such sum at the default rate set forth in the note
secured hereby. Furthermore, Trustor hereby grants Beneficiary, its employees
and agents the right, exercisable at any time and at Beneficiary's sole cost and
expense, to enter upon the Real Property for the purpose of conducting an
inspection, sampling and testing to determine whether there have been any
violations of the covenants contained in this Paragraph 12.

                                       8

<PAGE>

         Trustor's liability under this Paragraph 12 shall not terminate until
the earlier of (i) the sale of the Real Property pursuant to the enforcement of
the lien of this Deed of Trust, the proceeds of which are applied to the
indebtedness secured hereby, or (ii) the payment in full of the indebtedness.

         (13) Trustor agrees to indemnify, defend and hold harmless Trustee and
Beneficiary from and against any and all losses, liabilities, suits,
obligations, fines, damages, judgments, penalties, claims, charges, costs and
expenses (including attorneys' fees and disbursements) which may be imposed on,
incurred or paid by or asserted against Trustee and/or Beneficiary by reason or
on account of, or in connection with (a) any willful misconduct of Trustor or
any default or event of default by Trustor hereunder or under any other Loan
Document; (b) Trustee's and/or Beneficiary's good faith and commercially
reasonable exercise of any of their rights and remedies, or the performance of
any of their duties hereunder or under the other Loan Documents to which Trustor
is a party; (c) Trustor's failure to perform or comply with any of the covenants
set forth in Paragraph 12 above; (d) the construction, reconstruction or
alteration of the Real Property; (e) any negligence of Trustor, or any
negligence or willful misconduct of any lessee of the Real Property or any
portion thereof, or any of their respective agents, contractors, employees,
licensees or invitees; or (f) any accidents, injury, death or damage to any
person or property occurring in, on or about the Real Property or any street,
drive, sidewalk, curb or passageway adjacent thereto, except for the willful
misconduct or gross negligence of Beneficiary or Trustee. Upon demand by Trustee
and/or Beneficiary, Trustor shall defend any action or proceeding brought
against Trustee and/or Beneficiary arising out of or alleging any claim or cause
of action covered by this indemnity, all at Trustor's own cost and by counsel to
be approved by Beneficiary in the exercise of its reasonable judgment. In the
alternative, Trustee and/or Beneficiary may elect to conduct its own defense at
the expense of Trustor. The provisions of this Paragraph 13 shall survive the
foreclosure or the delivery of a deed in lieu of foreclosure of this Deed of
Trust or the payment in full of the indebtedness secured hereby and the
termination and reconveyance of this Deed of Trust, as the case may be.

         Any amount payable to Trustee or Beneficiary under Paragraph 12 or this
Paragraph 13 shall be due and payable immediately after demand therefor and
receipt by Trustor of a statement setting forth in reasonable detail the amount
claimed and the basis therefor, and such amounts shall bear interest at the rate
specified in Paragraph 6 hereof from and after the date such amounts are paid by
Beneficiary or Trustee, as the case may be, until paid in full by Trustor.

         (14) That upon default by Trustor in payment of any indebtedness
secured hereby or in performance of any agreement hereunder, Beneficiary may
take any action or pursue any right or remedy permitted under applicable law
specifically including, without limiting, impairing or otherwise affecting its
other rights and remedies declare all sums secured hereby immediately due and
payable by delivery to Trustee written declaration of default and demand for
sale and of written notice of default and of election to cause to be sold the
Real Property, which notice Trustee shall cause to be filed for record.
Beneficiary also shall deposit with Trustee this Deed of Trust, said note and
all documents evidencing expenditures secured hereby.

         After the lapse of such time as may then be required by law following
the recordation of said notice of default, and notice of the sale having been
given as then required by law, Trustee, without demand on Trustor, shall sell
the Real Property at the time and place fixed by it in said notice of sale,
either as a whole or in separate parcels, and in such order as it may determine,
at public auction to the highest bidder for cash in lawful money of the United
States, payable at time of sale. Trustee may postpone sale of all or any portion
of said Real Property by public announcement at such time and place of sale, and
from time to time thereafter may postpone such sale by public announcement at
the time fixed by the preceding postponement. Trustee shall deliver to such
purchaser its deed conveying the Real Property so sold, but without any covenant
or warranty, express or implied. The recitals in such deed of any matters or
facts shall be conclusive proof of the truthfulness thereof. Any person,
including Trustor, Trustee, or Beneficiary as herein defined, may purchase at
such sale.

         After deducting all costs, fees and expenses of Trustee and of this
Trust, including cost of evidence of title in connection with sale, Trustee
shall apply the proceeds of sale to payment of all sums expended under the terms
hereof, not then repaid, with accrued interest at the rate specified in
Paragraph 6 hereof; all other sums then secured hereby; and the remainder, if
any, to the person or persons legally entitled thereto.

                                       9

<PAGE>

         If this Deed of Trust or any note secured hereby provides for any
charge for prepayment of any indebtedness secured hereby, Trustor agrees to pay
said charge if any of said indebtedness shall be paid prior to the date thereof
stated in said note or this Deed of Trust, even if and notwithstanding Trustor
shall have defaulted in payment thereof, or in performance of any agreement
hereunder, and Beneficiary, by reason thereof, shall have declared all sums
secured hereby immediately due and payable.

         (15) Following recordation of a notice of default, Beneficiary and
prospective bidders at any foreclosure sale shall have the right to enter and
inspect said Real Property at reasonable times and upon reasonable notice to
Trustor. Trustor shall, promptly following the recordation of a notice of
default, but in any event prior to the date of sale set in the notice of sale,
disclose to Beneficiary in writing all material facts regarding said Real
Property.

         Trustor hereby waives any claims against Beneficiary or Trustee arising
out of or in connection with any disclosures regarding said Real Property which
may be made by Beneficiary or Trustee to prospective bidders at or prior to the
foreclosure sale. In addition, Trustor shall indemnify, defend and hold harmless
Trustee and Beneficiary from and against all losses, liabilities, suits, damages
claims or judgments which may arise out of or in connection with any disclosures
regarding said Real Property which may be made by Beneficiary or Trustee to
prospective bidders at or prior to the foreclosure sale. All costs, fees and
expenses incurred by Beneficiary or Trustee in connection with such inspections
and disclosures shall be payable by Trustor upon demand therefor, and such
amounts shall bear interest at the rate specified in Paragraph 6 hereof from the
date paid by Beneficiary until paid in full by Trustor, and if not so paid shall
be added to the amount secured hereby.

         (16) That if the Trustor, or any subsequent owner of the Real Property
covered hereby, shall occupy said property, or any part thereof, after any
default in payment of any amount secured by this Deed of Trust, the Trustor, or
such owner, shall pay to the Beneficiary in advance on the first day of each
month a reasonable rental for the premises so occupied, and upon failure to pay
such reasonable rental, the Trustor, or such owner, may be removed from said
premises by summary dispossess proceedings or by any other appropriate action or
proceeding.

         (17) Trustor hereby represents and warrants: (a) that it is or will be
the lawful owner of all of the Trust Estate free of all claims, liens or
encumbrances whatsoever, other than the security interests granted pursuant
hereto and such other matters as may be approved in writing by Beneficiary in
Beneficiary's sole and absolute discretion; (b) all information, including but
not limited to financial statements famished by Trustor to Beneficiary
heretofore or hereafter, whether oral or written, is and will be correct and
true as of the date given; and (c) if Trustor is a business entity, the
execution, delivery and performance hereof are within its powers and have been
duly authorized.

         (18) With respect to the Personal Property and the security interest
granted to Beneficiary under the Deed of Trust, the following shall apply:

         (a) Trustor shall: (i) execute such financing statements and other
documents and do such other acts and things, all as Beneficiary may from time to
time require, to establish and maintain a valid security interest in the
Personal Property, including payment of all costs and fees in connection with
any of the foregoing when deemed necessary by Beneficiary; (ii) keep the
Personal Property separate and identifiable and at the location described herein
and permit Beneficiary and its representatives to inspect the Personal Property
and/or records pertaining thereto from time to time during normal business
hours; (iii) at Trustor's expense upon Beneficiary's request remove any
unauthorized lien or security interest and defend any claim affecting the
Personal Property; (iv) reimburse Beneficiary for any expenses including but not
limited to reasonable attorneys' fees and legal expenses, incurred by
Beneficiary in seeking to protect, collect or enforce any rights in the Personal
Property; (v) maintain the Personal Property in good condition and not use the
Personal Property for any unlawful purpose; and (vi) at its own expense, upon
request of Beneficiary, notify any parties obligated to Trustor on any of the
Personal Property to make payment to Beneficiary, and Trustor hereby irrevocably
grants Beneficiary power of attorney to make said notifications and collections.
Trustor does hereby authorize Beneficiary to perform any and all acts which
Beneficiary in good faith deems necessary for the protection and preservation of
the Personal Property

                                       10

<PAGE>

or its value or Beneficiary's security interest therein, including transferring
any of the Personal Property into its own name and receiving the income thereon
as additional security hereunder.

         (b) Whenever a default exists under this Deed of Trust, Beneficiary, at
its option may: (i) transfer any of the Personal Property into its own name or
that of its nominee; (ii) notify any parties obligated on any of the Personal
Property consisting of accounts, instruments, chattel paper, chooses in action
or the like to make payment to Beneficiary and enforce collection of any of the
Personal Property herein; (iii) require Trustor to assemble and deliver any of
the Personal Property to Beneficiary at a reasonable convenient place designated
by Beneficiary. No delay on the part of Beneficiary in the exercise of any right
or remedy shall constitute a waiver thereof and any exercise, or partial
exercise, by Beneficiary of any right or remedy under this Paragraph 18 shall
not preclude the exercise of any other right or remedy of Beneficiary under this
Paragraph 18, this Deed of Trust or at law or in equity or the further exercise
of the same remedy. This Paragraph 18 shall not be construed to derogate or
impair the lien or provisions of any other provision of the Deed of Trust with
respect to any property described in the Deed of Trust that is real property or
which the parties have agreed to treat as real property. Beneficiary's rights,
power and remedies as to the Personal Property shall be exercisable as to any
part or all of the Personal Property as Beneficiary may elect.

         (c) Trustor hereby assumes, and releases Beneficiary from, all risk of
loss, destruction or damage to all or any part of the Personal Property by
reason of any casualty or cause whatsoever except as caused by the intentional
misconduct of Beneficiary, and Trustor shall indemnify and hold Beneficiary
harmless from and against all liabilities, obligations, claims, damages,
penalties, causes of action, costs and expenses (including, reasonable
attorneys' fees and costs) imposed upon or incurred by or asserted against
Beneficiary by reason of (i) any failure by Trustor to perform or comply with
the terms of this Deed of Trust or (ii) the exercise by Beneficiary of any
rights or remedies provided hereunder or at law or in equity, except as caused
by Beneficiary's intentional misconduct.

         (d) Upon transfer by Beneficiary of any part of the obligations secured
hereby, Beneficiary shall be fully discharged from all liability with respect to
the Personal Property transferred therewith.

         (e) The grant of a security interest in proceeds, replacements,
substitutions or the like does not imply any right of Trustor to sell or dispose
of any Personal Property described herein without the express written consent by
Beneficiary.

         (19) Beneficiary, acting alone, may from time to time, by instrument in
writing, substitute a successor or successors to any Trustee named herein or
acting hereunder, which instrument, executed and acknowledged by each and
recorded in the office of the recorder of the county or counties where said
property is situated, shall be conclusive proof of proper substitution of such
successor Trustee or Trustees, who shall, without conveying from the Trustee
predecessor, succeed to all its title, estate, rights, powers and duties. Said
instrument must contain the name of the original Trustor, Trustee and
Beneficiary hereunder, the book and page or document number where this Deed of
Trust is recorded, and the name and address of the new Trustee. If notice of
default shall have been recorded, this power of substitution cannot be exercised
until after the costs, fees and expenses of the then acting Trustee shall have
been paid to such Trustee, who shall endorse receipt thereof upon such
instrument of substitution.

         (20) That any Trustor who is a married person hereby expressly agrees
that recourse may be had against his or her separate property, but without
hereby creating any lien or charge thereon, for any deficiency after sale of the
property hereunder.

         (21) If requested, that Trustor shall furnish at least annually, within
ninety (90) days after the end of its fiscal year, or more frequently if
requested by Beneficiary, a full and complete financial statement concerning
income, expenses, assets and liabilities of Trustor, and/or applicable or
attributable to the Trust Estate encumbered hereby and the operations thereof,
and such other information as Beneficiary may request. Such statement shall be
prepared in accordance with generally accepted accounting principles and shall
be certified as true, complete and correct by Trustor. Trustor shall keep true
and correct records upon which annual statements are

                                       11

<PAGE>

based for not less than three (3) years after delivery of the required annual
statement. Beneficiary shall have the right, at its cost and at any time and
from time to time after giving prior written notice to Trustor, to do or cause
to be done any of the following: to audit the records; to cause an audit of the
records to be made; to make abstracts from the records; to make copies of any or
all of the records; to examine any or all leases and rental agreements (if such
leases and rental agreements exist); and to make copies of any or all leases and
rental agreements (to the extent such leases and rental agreements exist).
Trustor shall make all records specified in the notice available at the time
specified in the notice and at the place where the records are customarily kept,
or at Beneficiary's option at Beneficiary's office. Upon any default under the
note described above, this Deed of Trust or other Loan Documents, Beneficiary
may perform any of the acts authorized by this paragraph at the sole cost of
Trustor. Trustor shall promptly reimburse Beneficiary for its costs and such
costs shall be secured by this Deed of Trust.

         (22) That the pleading of any statute of limitations as a defense to
any and all obligations secured by this Deed of Trust is hereby waived to the
full extent permissible by law.

         (23) That this Deed of Trust applies to, inures to the benefit of, and
binds all parties hereto, their heirs, legatees, devisees, administrators,
executors, successors and assigns. The term Beneficiary shall mean the owner and
holder, including pledgees, of the note secured hereby, whether or not named as
Beneficiary herein. In this Deed of Trust, whenever the context so requires, the
masculine gender includes the feminine and neuter, and the singular number
includes the plural. If more than one (1) person executes this Deed of Trust as
Trustor, the obligations of such persons are joint and several.

         (24) Trustor agrees that Beneficiary may provide any financial or other
information, data or material in Beneficiary's possession relating to Trustor,
the Loan, this Deed of Trust, the Property or the Improvements, to Beneficiary's
parent, affiliate, subsidiary, participants or service providers, without
further notice to Trustor.

         (25) That Trustee accepts this Trust when this Deed of Trust, duly
executed and acknowledged, is made a public record as provided by law. Trustee
is not obligated to notify any party hereto of pending sale under any other deed
of trust or of any action or proceeding in which Trustor, Beneficiary or Trustee
shall be a party unless brought by Trustee.

         (26) To pay Beneficiary for each and every beneficiary statement
furnished at Trustor's request the maximum fee allowed by law and if there be no
maximum, then in accordance with Beneficiary's schedule therefor. Such fee shall
be computed as of the time said statement is furnished.

         (27) That should Trustor sell, convey, transfer, dispose of or further
encumber the Trust Estate or any part thereof or any interest therein or enter
into a lease covering all or any portion thereof or an undivided interest
therein, either voluntarily, involuntarily or otherwise, or enter into an
agreement so to do, without the prior written consent of Beneficiary being first
had and obtained, then Beneficiary may, at its option, declare all sums secured
hereby immediately due and payable. Consent to one such transaction shall not be
deemed to be a waiver of the right to require such consent to future or
successive transactions.

         (28) If Trustor is a corporation, trust, limited or general partnership
or a joint venture, or limited liability company, should there occur (A) a sale,
conveyance, transfer, disposition or encumbrance, either voluntary or
involuntary, or should an agreement be entered into to accomplish any thereof,
with respect to (i) more than ten percent (10%) of the issued and outstanding
capital stock of Trustor if Trustor is a corporation or (ii) beneficial interest
of Trustor if Trustor is a trust or (iii) any general partnership or joint
venture interest if Trustor is a limited or general partnership or a joint
venture, (iv) any membership interest if Trustor is a limited liability company,
or (B) a change in any general partner or joint venturer if Trustor is a limited
or general partnership or a joint venture, then Beneficiary may, at its option,
declare all sums secured hereby immediately due and payable unless Beneficiary
shall have given its prior written consent thereto. Consent to one such
transaction shall not be deemed to be a waiver of the right to require such
consent to future or successive transactions.

                                       12

<PAGE>

         (29) That in the event of the passage after the date hereof of any law
deducting from the value of real property, for taxation purposes, any lien
thereon or changing in any way the laws now in force for the taxation of deeds
of trust or debts whether or not secured thereby for federal, state or local
purposes or the manner of the collection of any such taxes so as to affect this
Deed of Trust or the obligations hereby secured, Trustor agrees to pay any
thereof and if Trustor fails to so do or if it would be illegal for Trustor so
to do then, the whole of the principal sum secured by this Deed of Trust,
together with accrued interest thereon shall, at the option of Beneficiary,
without demand or notice, immediately become due and payable.

         (30) To the fullest extent permitted by law, Trustor hereby waives the
provisions of Section 431.70 of the California Code of Civil Procedure and all
amendments thereto.

         (31) That no remedy herein conferred upon, reserved to Trustee or
Beneficiary is intended to be exclusive of any other remedy herein or by law
provided, but each shall be cumulative and shall be in addition to every other
remedy given hereunder or now or hereafter existing at law or in equity or by
statute. No delay or omission of Trustee or Beneficiary in the exercising of any
right or power accruing upon any event of default hereunder shall impair such
right or power or any other right or power nor shall the same be construed to be
a waiver of any default or any acquiescence therein; and every power and remedy
given by this Deed of Trust to Trustee or Beneficiary may be exercised from time
to time as often as may be deemed expedient by Trustee or Beneficiary. If there
exists additional security for the obligations secured hereby, Beneficiary, at
its sole option, and without limiting or affecting any of the rights or remedies
hereunder, may exercise any of the rights or remedies to which it may be
entitled hereunder either concurrently with whatever rights it may have in
connection with such other security or in such order and in such manner as
Beneficiary may deem fit without waiving any rights with respect to any other
security. The granting of consent by Beneficiary to any transaction as required
by the terms hereunder shall not be deemed a waiver of the right to secure the
consent of Beneficiary to future or successive transactions.

         (32) That in the event any one or more of the provisions contained in
this Deed of Trust or in the promissory note hereby secured shall for any reason
be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision of this Deed
of Trust or said promissory note, but this Deed of Trust and said promissory
note shall be construed as if such invalid, illegal or unenforceable provision
had never been contained herein or therein.

         (33) TRUSTOR ACKNOWLEDGE(S) AND AGREE(S) THAT ANY CONTROVERSY WHICH MAY
ARISE UNDER THIS AGREEMENT OR THE LENDING RELATIONSHIP ESTABLISHED HEREBY WOULD
BE BASED UPON DIFFICULT AND COMPLEX ISSUES, AND THEREFORE, TRUSTOR HEREBY
WAIVE(S) ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING (INCLUDING
ACTIONS SOUNDING IN TORT) TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS DEED OF
TRUST OR ANY OTHER LOAN DOCUMENT OR ARISING FROM THE TRANSACTION CONTEMPLATED
HEREUNDER OR THE LENDING RELATIONSHIP ESTABLISHED HEREBY AND AGREE(S) THAT ANY
SUCH ACTION OR PROCEEDING SHALL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY
A JUDGE AND NOT BY A JURY.

         (34) This Deed of Trust has been executed and delivered in the State of
California and is to be construed and enforced according to and governed by the
laws thereof except that with respect to any portion of the Trust Estate covered
hereby located outside of the State of California, only to the extent required
for Trustee or Beneficiary to enforce or realize upon the rights and remedies
hereunder with respect thereto, the laws of the state in which such property is
located shall be applicable hereto.

                                       13

<PAGE>

         The undersigned Trustor requests that a copy of any notice of default
and of any notice of sale hereunder be mailed to him at his address hereinbefore
set forth. The terms of the Suretyship Rider to Deed of Trust attached hereto as
Exhibit B is hereby incorporated by this reference.

                                  TRUSTOR:

                                  /s/  Monte D. Wood
                                  --------------------------------------------
                                  Monte D. Wood

                                  /s/  Tina Wood
                                  --------------------------------------------
                                  Tina Wood

                                  /s/ James A. Childers
                                  --------------------------------------------
                                  James A. Childers

                                       14

<PAGE>

STATE OF CALIFORNIA                         )
                                            ) ss.
COUNTY OF SANTA CLARA                       )

         On July __, 2000 before me, the undersigned, a Notary Public in and for
said State, personally appeared Monte D. Wood personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

         WITNESS my hand and official seal.

                                                ------------------------------
                                                NOTARY PUBLIC

STATE OF CALIFORNIA             )
                                ) ss.
COUNTY OF SANTA CLARA           )

         On July __, 2000 before me, the undersigned, a Notary Public in and for
said State, personally appeared Tina Wood personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

         WITNESS my hand and official seal.

                                                ------------------------------
                                                NOTARY PUBLIC

STATE OF CALIFORNIA              )
                                 ) ss.
COUNTY OF SANTA CLARA            )

         On July __, 2000 before me, the undersigned, a Notary Public in and for
said State, personally appeared James A. Childers personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

         WITNESS my hand and official seal.

                                                ------------------------------
                                                NOTARY PUBLIC

                                       15

<PAGE>

                                   Exhibit "A"

                            Real Property Description

                                       16

<PAGE>

                                LEGAL DESCRIPTION

The land referred to in this Report is described as follows:

46'

All that certain real property situate in the City of Santa Clara, County of
Santa Clara, State of California, described as follows:

PARCEL ONE:

All of Parcel 5B, as shown upon that certain Map entitled, "PARCEL MAP, BEING A
PORTION OF TRACT N0. 2791 (LOT 17 & 18 & A PORTION OF LOTS 16 & 19), IN THE CITY
OF SANTA CLARA, STATE OF CALIFORNIA", which Map was filed for record in the
Office of the Recorder of the County of Santa Clara, State of California, on
April 30, 1973, in Book 322 of Maps, at Page 16.

EXCEPTING THEREFROM so much thereof described as follows:

BEGINNING at the Northeasterly corner of said Parcel 5B as shown on said Map;
thence along the Easterly boundary of said lands South 00(degree) 49' 02" West,
215 feet; thence leaving said boundary North 10(degree) 46' 28" West, 64.60
feet; thence parallel with the aforesaid Easterly boundary and distant 13.00
feet Westerly therefrom, North 00(degree) 49' 02" East, 151.00 feet to the
Northerly line of said lands; thence along said Northerly line North 87(degree)
38' 54" East, 13.00 feet to the point of beginning.

CONTAINING, 2.375 square feet or 0.055 acre of land, more or less.

PARCEL TWO:

A common driveway easement for ingress and egress and for a common storm
drainage area, appurtenant to Parcel One hereinabove described, over the
Northerly 12 1/2 feet of Parcel 5A, as said Parcel is shown on that certain
Parcel Map recorded in Book 322 of Maps, Page 16, EXCEPTING THEREFROM that
portion granted to Santa Clara Valley Water District by Deed recorded in Book C
186 Official Records Santa Clara County, as provided for in that certain
Agreement by and between the City of Santa Clara, a municipal Corporation and
Sobrato Development Co., #793 and Merle W. Garing, recorded February 20, 1980,
in Book F 148, Page 114 of Official Records Santa Clara County.

APN: 216-33-037
ARB: 216-33-23

<PAGE>

                  SURETYSHIP RIDER TO DEED OF TRUST EXHIBIT "B"

         Rider to that certain Deed of Trust, Security Agreement and Fixture
Filing dated as of July __, 2000 (the "Deed of Trust") executed by MONTE D. WOOD
and TINA WOOD, husband and wife, and JAMES D. CHILDERS, a single man, as
trustors (individually and collectively, jointly and severally "Trustor") and
naming FINANCIAL TITLE COMPANY, as trustee (the "Trustee") and COMERICA
BANK-CALIFORNIA, as beneficiary (the "Beneficiary") on the real property
described in the Deed Of Trust (the "Property"), which description is
incorporated herein by this reference. This rider is incorporated into and shall
be deemed to amend and supplement the Deed of Trust.

                                   WARRANTIES

         Trustor acknowledges that this Deed of Trust secures indebtedness of
WOOD ALLIANCE, S.P. INC. d/b/a WOOD ASSOCIATES (the "Borrower") an entity other
than Trustor. Trustor warrants that: (1) this Deed of Trust is executed at
Borrower's request; (2) this Deed of Trust complies with any agreements between
Trustor and Borrower regarding Trustor's execution hereof; (3) Trustor has not
and will not, without prior written consent of Beneficiary, sell, lease assign,
encumber, hypothecate, transfer or otherwise dispose of the Property or any
interest therein; (4) Beneficiary has made no representation to Trustor as to
the credit worthiness of Borrower; and (5) Trustor has established adequate
means of obtaining from Borrower, on a continuing basis, financial and other
information pertaining to borrower's financial condition. Trustor agrees to keep
adequately informed, from its independent sources, of any facts, events or
circumstances which might in any way affect Trustor's risks hereunder, and
Trustor further agrees that Beneficiary shall have no obligation to disclose, to
Trustor, information or material acquired in the course of Beneficiary's
relationship with Borrower.

                                     WAIVERS

         Trustor waives any right to require Beneficiary to: (1)proceed against
any person, including Borrower or any guarantor; (2) proceed against, or exhaust
any collateral held from, Borrower or any other person; (3) give notice of the
terms, times and place of any public or private sale of personal property
security held from Borrower or comply with any other provision of Section 9504
of the California Uniform Commercial Code; (4) pursue any other remedy in
Beneficiary's power; or (5) make any presentment, demand for performance, or
give any notice of nonperformance, protest, notice of protest or notice of
dishonor in connection with any obligation or evidence of indebtedness held by
Beneficiary as security, in connection with any obligation or evidence of
indebtedness which constitutes in whole or in part the obligation secured by
this Deed of Trust, or in connection with the creation of new or additional
obligations.

         Trustor waives any defenses arising by reason of: (1) the incapacity,
lack of authority, death or disability or other defense of Borrower or any other
person including, but not limited to, the insolvency or bankruptcy of Borrower,
or any other person, or any stay in connection with any such bankruptcy
proceedings, or the failure of beneficiary to file or enforce a claim against
the estate (in administration, bankruptcy, or any other proceeding) of Borrower
or any other person; (2) the cessation from any cause whatsoever, other than
payment in full, of the obligations of Borrower or any other person; (3) the
application by Borrower of the proceeds of any obligation secured hereby for
purposes other than the purposes represented by Borrower to Beneficiary or
intended or understood by Beneficiary or Trustor; (4) any act or omission by
Beneficiary which directly or indirectly results in or aids the discharge or
release of Borrower, any other person, any obligation secured hereby, or any
collateral by operation of law or equity or otherwise; or (5) any modification
of any obligation secured hereby, in any form whatsoever including, without
limitation, the renewal, extension, acceleration or other change in time for
payment of such obligations, increase or decrease of the rate of interest
thereon, or other change in the terms of such obligations or any part thereof.

         Trustor waives all rights which Trustor may have, under any requirement
of law or equity, that Beneficiary exhaust any other security for the
obligations secured hereby before proceeding under this Deed of Trust.

                                       1

<PAGE>

         Trustor hereby waives any defense arising by reason of any claim or
defense based upon an election of remedies by Beneficiary or other related
defenses, which, in any manner, impairs, affects, reduces, releases, destroys
and/or extinguishes Trustor's subrogation rights, rights to proceed against
Borrower for reimbursement, and/or other rights of Trustor to proceed against
Borrower, against any other guarantor, or against any other person or security
including, but not limited to, any defense based upon an election of remedies by
Beneficiary under all the provisions of California Code of Civil Procedure. As
an illustration, without limiting the foregoing, Trustor waives and relinquishes
all rights, remedies, and defenses that Trustor may have: (1) under any law
which may limit the amount of a deficiency judgment based on any obligation
secured hereby; (2) under any bar to deficiency judgments; (3) any requirement
of law that Beneficiary exhaust this or any other security for the obligations
secured hereby before proceeding against Trustor; (4) under any law which may
prohibit Beneficiary from enforcing its rights and remedies against Trustor by
both a private trustee's sale and an action in court; (5) under any law which
requires that a court action to enforce Beneficiary's rights be an action to
foreclose this Deed of Trust; and (6) by reason of an election of remedies by
Beneficiary, including but not limited to the exercise of nonjudicial or
judicial remedies against Borrower or any guarantor, Borrower's or any
guarantor's real and/or personal property, or any other security for the
obligations secured hereby or for any guaranty therefor in whatever order or
manner Beneficiary may determine, which may, in any manner, impair, affect,
reduce, release, destroy, and/or extinguish Trustor's subrogation rights, rights
to proceed against Borrower for reimbursement, and/or other rights of Trustor to
proceed against Borrower, any guarantor, or against any other person or security
including, without limitation, any loss of rights that Trustor may suffer in
connection with any anti-deficiency laws or any other laws limiting, qualifying
or discharging indebtedness of or remedies against Borrower or any other person.
Trustor agrees that if all or a portion, of the obligations secured hereby (or
any guaranty thereof) are at any time secured by any other deed of trust or
other interest in real property, Beneficiary, in its sole discretion and without
notice or demand and without affecting the security of this Deed of Trust, may
exercise all the rights and remedies against Borrower or any guarantor,
Borrower's or any guarantor's real and personal property, and any other security
for the obligations secured hereby or for any guaranty therefor in whatever
order or manner Beneficiary may determine, including without limitation,
nonjudicial foreclosure of any real property security. Without limiting the
generality of the foregoing or any other provisions hereof, Trustor hereby
expressly waives any and all benefits that might otherwise be available to
Trustor under California Civil Code Sections 2809, 2810, 2819, 2839, 2845, 2849,
2850, 2899 and 3433 (as such sections may be amended or recodified from time to
time), and California Code of Civil Procedure Sections 580a, 580b, 580d and 726
(as such sections may be amended or recodified from time to time). Trustor
hereby acknowledges and understands that Beneficiary may obtain a judgment
against Trust of the entire Obligation or any deficiency balance thereof upon
foreclosure of the real or personal property without regard to the fair market
value of the property, the method of foreclosure or the fact that the Obligation
arises from a purchase money transaction.

         Trustor waives and releases any and all rights of subrogation,
reimbursement, indemnity or contribution which it may now or hereafter have
against: (1) Borrower, any guarantor or any person who now or hereafter has
direct or contingent liability (whether by contract, at law or in equity) for
all or any portion of the obligations secured hereby; or (2) against any
property which now or hereafter serves as collateral security for the
obligations secured hereby. If and to the extent such waiver and release is
unenforceable, Trustor hereby agrees that all such rights of subrogation,
reimbursement, indemnity and contribution shall be junior and subordinate to the
right of Beneficiary to obtain payment and performance of the obligations
secured hereby and to all rights of Beneficiary in and to any property which now
or hereafter serves as collateral security for such obligations.

                 WAIVER OF AUTHENTICATION OF VALIDITY OF ACTS OF
                        CORPORATION, PARTNERSHIP OR TRUST

         It is not necessary for Beneficiary to inquire into the power of
Trustor or the officers, directors, partners or agents acting or purporting to
act on behalf of Trustor, and all obligations made, created or accepted in
reliance upon the professed exercise of such power shall be secured hereby.

                                       2

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