Document:

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                                                                 EXHIBIT 10.2(b)

     THIS EMPLOYMENT AGREEMENT made and entered into this 27th day of June, 2001
between TransCommunity Bankshares, Inc. ("Employer"), a Virginia
corporation, and Bruce B. Nolte ( Employee").

     WHEREAS, Employer is in the process of forming a Virginia multi-bank
holding company ("Holding Company"); and,

     WHEREAS, Employee has agreed to become President and Chief Operating
Officer of the Holding Company; and,

     WHEREAS, the parties wish to establish the terms and conditions of
Employee's employment.

     NOW, THEREFORE, in consideration of the promises and the mutual covenants
and agreements set forth herein, the parties hereby agree as follows:

     1. RELATIONSHIP AND DUTIES BETWEEN THE PARTIES.

          1.1 Holding Company.

               Employer agrees to employ Employee on the effective date of this
Agreement as President and Chief Operating Officer of the Holding Company, and
to perform such services and duties as the Holding Company's Chief Executive
Officer may, from time to time, designate during the term hereof. Subject to the
terms and conditions hereof, Employee will perform such duties and exercise such
authority as are customarily performed and exercised by persons holding such
office, subject to the direction of the Chief Executive Officer and the Holding
Company's Board of Directors ("Holding Company Board").

          1.2 Employee Undertakings.

               1.2.1 Employee accepts such employment and shall devote his full
time, attention, and best efforts to the diligent performance of his duties
herein specified and as an officer of the Holding Company. While employed by
Employer, the Employee will not, without the prior express consent of the Chief
Executive Officer, accept employment with any other individual, corporation,
partnership, governmental authority or other entity, or engage in any other
venture for profit which Employer or the Holding Company Board may consider to
be in conflict with the best interests of the Holding Company or to be in
competition with the Holding Company, or which may interfere in any way with the
Employee's performance of his duties hereunder. It is understood that Employee
does have the right to participate in passive investments including income
producing real estate that does not conflict with the interest of the Banks or
Bank Holding Company.

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               1.2.2 Employer shall not require the Employee, as a part of his
duties, to perform or to participate in any activity which constitutes a
violation of any state or federal law, rule, ordinance or regulation.

          1.3. Regulatory Approval.

               1.3.1 In the event that the Federal Reserve Board declines to
approve Employee as President of the Holding Company, but does not otherwise
prohibit the Holding Company from employing the Employee in an alternative
senior officer position, the Employer agrees to negotiate in good faith with
Employee to determine mutually acceptable terms of employment and compensation
in such lesser capacity.

     2. DEFINITIONS.

          2.1 "Complete disability" shall mean the inability of Employee, due to
illness, accident, or any other physical or mental incapacity, completely to
fulfill his obligations hereunder for an aggregate of ninety (90) days within
any period of 180 consecutive days during the term hereof.

          2.2 "Cause" shall include, without limitation: dishonesty; theft;
conviction of a crime, which is either (a) a felony, or (b) a misdemeanor
involving moral turpitude or financial impropriety; unethical business conduct;
activity which is contrary to the Holding Company's interests; gross or repeated
negligence in carrying out Employee's duties; or material violation of
Employee's obligations hereunder.

          2.3 "Employer" shall be deemed synonymous with the terms "Holding
Company" or "Holding Company Board", whenever the context so requires.

     3. TERMS OF EMPLOYMENT

          3.1 Term.

               3.1.1 The term of Employee's employment with the Company shall be
for three (3) years from the effective date of this agreement (the "Term");
provided, however, the Company may, at its option and in its sole discretion,
not later than 30 days prior to the end of the Term, renew the Term for an
additional, successive two (2) year period (the "Renewal Term") the same terms
and conditions as are applicable during the initial Term, subject to such
appropriate increases in salary and other benefits as the parties may agree upon
unless terminated earlier pursuant to the terms hereof.

               3.1.2 Employee's employment pursuant to this Agreement shall be
terminated by the first to occur of any of the following:

                    3.1.2.1 The death of Employee;

                    3.1.2.2 The complete disability of Employee,

                    3.1.2.3 The discharge of Employee by Employer for cause.

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Notwithstanding the foregoing, the Company may terminate immediately the
Employee's employment with the company with Cause(as defined herein) upon
written notice to the Employee. For purposes of this agreement, Cause will be
defined as:

               3.1.3 Employees repeated failure to perform satisfactorily
Employee's job duties under this agreement and as determined by the Board of
Directors.

               3.1.4 Employee's failure to comply with all material applicable
laws in performing Employee's job duties or in directing the conduct of Company
business.

               3.1.5 Employee's commission of any felony or intentionally
fraudulent or other act against the company, or its affiliates, employees,
agents or customers which demonstrates Employee's untrustworthiness or lack of
integrity.

               3.1.6 Employee's participation in any activity which is directly
competitive with or intentionally injurious to the Company.

               3.1.7 Discharge for "cause" will require a two-thirds majority
vote of the Holding Company Board, exclusive of the Employee.

               3.1.7 Termination of Employee's employment for cause shall
include termination as an employee, officer and director of the Holding Company.

          Except as expressly provided herein, all compensation, benefits and
the like otherwise payable to Employee with respect to periods after his
cessation of employment shall cease to be due and owing for periods after
his cessation of employment for any reason.

          3.2 Termination Without Cause. Employee shall serve at the pleasure of
the Holding Company Board. Employer may terminate this Agreement without cause
at any time upon an affirmative vote of two-thirds (2/3) of all members of the
Holding Company Board, whether or not in attendance at the meeting or voting
upon the issue. In the event of such termination without cause by Employer,
Employee shall be paid a severance payment equal to Employee's annual base
salary in effect at the time of termination or the remaining salary represented
in this contract, whichever is less. Such severance pay shall be paid in a lump
sum, less applicable tax withholdings, not later than thirty (30) days following
the effective date of termination. Employee shall not be entitled to any
performance bonus for the year of termination, except as may be awarded in the
sole discretion of the Holding Company Board.

     4. COMPENSATION

          For all services which Employee may render to Employer during the term
hereof, Employer shall pay to Employee, subject to such deductions as may be
required by law, according to the schedule set out below:

          4.1 Base Salary. From the effective date hereof, Employee shall
receive for the term of this Agreement a salary based on an annual rate of
$124,000, payable in equal monthly installments, subject to such deductions as
may be required by law. The Employee will

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receive performance reviews at least annually at the end of each fiscal year
from the Chief Executive Officer, and the Employee's base salary may be
increased but not decreased at the sole discretion of the Holding Company Board.

          4.2 Formation Bonus. Employer shall pay to Employee, on or before
January 31, 2002, a total formation bonus of up to $25,000, consisting of
payments as indicated below for each of the following items which has been
successfully completed on or before December 31, 2001; provided, that if
Employer determines to defer or abandon any of the efforts described in sections
4.2.1 through 4.2.3 below, Employee shall be deemed to have earned that portion
of the formation bonus provided all other terms are met:

               4.2.1 The reorganization whereby the Bank of Powhatan, N.A. will
become a wholly owned subsidiary of the Holding Company (the "Reorganization")
has received final approval from all necessary regulatory authorities, and from
the shareholders of the Bank of Powhatan, N.A., and the Reorganization is
consummated; the Holding Company has properly completed all regulatory
applications necessary to operate the Holding Company and has filed the same
with the appropriate regulatory authorities; and the Holding Company has filed
with the Securities Exchange Commission and any necessary state regulatory
authorities of an appropriate registration statement to permit the public
offering of the stock of the Holding Company -$12,500.

               4.2.3 All regulatory applications necessary to operate two
additional subsidiary national banks, the Bank of Goochland, N.A., and the Bank
of Louisa, N.A., excluding the identification of banking officers, board members
and operating locations, have been prepared and approved by the Holding Company
Board, each of the appropriate subsidiary bank boards, the OCC and the FDIC; and
the Holding Company shall have received firm commitments or actual payment of
capital from investors in an amount equal to $10 Million Dollars- $12,500

          4.3 Termination for Cause. If Employee is terminated for cause prior
to the end of a fiscal year, Employer shall not be obligated to pay any annual
performance bonus for the year of, and any year, after such termination,
notwithstanding whether the Employee has met the requirements to earn components
of an annual performance bonus.

          4.4 Fees. If Employee serves on the Holding Company Board or the board
of directors of a subsidiary of the Holding Company, or a committee thereof,
Employee shall not be entitled to directors fees or meeting fees unless
otherwise determined by the Holding Company Board.

     5. OTHER BENEFITS

          During the term of Employee's employment hereunder, Employer shall
provide the following to Employee:

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          5.1 A term life insurance policy providing for death benefits of
$500,000 having a beneficiary designated by the Employee.

          5.2 After consummation of the Reorganization, a health insurance
policy covering the Employee and, if the Employee desires, covering the
dependent children and spouse of the Employee at no cost to the Employee other
than usual deductibles, copayments and the like as may be applicable to all
other employees.

          5.3 A long term disability insurance policy, as generally defined in
the insurance industry, providing for benefits of at least 60% of Employee's
annual base salary with a waiting period of no longer than six (6) months. This
long term disability policy will be as consistent as reasonably possible with
the definition of "complete disability" provided above.

          5.4 A complete physical examination for the Employee on an annual
basis at the Holding Company's expense.

          5.5 Employee shall be entitled to such paid sick leave, paid vacation
and other paid or unpaid leave as may be provided by the Holding Company under
its applicable personnel policies. Approved attendance at meetings or
conventions of banking associations or organizations shall not be charged
against Employee's annual vacation entitlement.

          5.6 In the event that Employee is terminated by Employer for any
reason other than cause, Employee may continue the health and disability
insurance benefits in section 5.3 and 5.4 above for twelve months, or such
greater period as applicable law may require, provided Employee timely pays the
applicable premium cost therefor.

     6. STOCK OPTIONS

          6.1 No later than a reasonable time after the Reorganization is
effected, Employee shall be granted an option to purchase 21,000 shares of stock
of the Holding Company at an exercise price of not less than fair market value
at the date of grant, with performance based vesting as provided below. The
number of options to be awarded shall be equitably adjusted in the event of a
stock split, stock dividend, recapitalzation or similar event or in the event
the number of the Holding Company's common stock initial outstanding after the
Reorganization is other than 1,500,000 shares.

          6.2 Vesting in (i.e., the right to exercise) the options shall be
based on the following: One-third of the option shares shall vest if at the end
of the first fiscal year of the Holding Company or December 31,2002, whichever
is sooner. A second one-third of the option shares shall vest if at the end of
the second fiscal year of the Holding Company or December 31, 2003, whichever is
sooner., The final one-third of the option shares shall vest if at the end of
the third fiscal year of the Holding Company or December 31, 2004, whichever is
sooner.

          6.3 Subject to section 6.4 below, once the vesting benchmark for a
fiscal year is met, the options thereby vested may be exercised in whole or in
part at any time during the first ten (10) years after the date of the
Reorganization.

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          6.4 If Employee is terminated for cause, all outstanding options
issued pursuant to section 6.1 shall be forfeited immediately. If Employee's
employment with Employer terminates for any reason other than cause, Employee
(or if deceased, his estate or other successor in interest) shall have ninety
(90) days after such termination in which to exercise any and all such stock
options which are then exercisable. In no event shall Employer be obligated to
issue any further stock options to Employee after his cessation of employment
for any reason.

     7. FAILURE TO OBTAIN CHARTER OR FINANCING

          Upon the happening of either of the following events, either party may
terminate this Agreement by notice in writing to the other, in which event this
Agreement shall cease and be null, void, and of no further force and effect,
except as expressly provided in this section:

          7.1 The refusal or failure of the Federal Reserve Board to approve the
Reorganization within 180 days of an application for such having been submitted
to said agency by Employer; or

          7.2 The failure for any reason by Employee to raise capital in an
amount equal to $ 2 Million within 180 days after Employee begins to raise such
capital for the Holding Company.

          If this Agreement is terminated by reason of the foregoing, Employer
agrees that Employee shall be entitled, as liquidated damages in lieu of all
other claims, to an amount equal to Employee's annual base salary. Such amount
shall be paid in a lump sum, less applicable tax withholdings, not later than
thirty (30) days following the effective date of termination.

     8. EXPENSES

          Upon Employee's presentment to Employer of expense reports acceptable
to Employer and which are in sufficiently detailed form to comply with standards
for deduction of business expenses established from time to time by the Internal
Revenue Service, Employer will reimburse Employee for such expenses approved by
Employer and incurred by Employee in connection with performance of his duties
hereunder.

     9. POST TERMINATION COVENANTS

          9.1 At such time as Employee's employment by Employer terminates,
other than a termination of Employee by Employer without cause, whether during
the initial term of employment or thereafter, Employee agrees that for six (6)
months year following such termination he will not engage (either individually
or as an employee, director, consultant or representative of any other person or
entity) in any business activity in which the Holding Company or any of its
subsidiaries engages or has formulated plans to engage, within a twenty-five
(25) mile radius of any location of the Holding Company, or any location of its
subsidiary banks identified prior to such termination.

          9.2 Employee further agrees that for one (1) year following
such termination he will not engage (either individually or as an employee or
representative of any other person or

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entity) in any business activity in which the Holding Company or any of its
subsidiaries engages or has formulated plans to engage as president or chief
operating officer of any financial institution, or as an officer other than
president or chief operating officer of a financial institution having assets of
$1,000,000,000 or less, within a twenty-five (25) mile radius of any location of
the Holding Company, or any location of a subsidiary bank existing prior to such
termination.

          9.3 Furthermore, for one (1) year following such termination, Employee
agrees that he will not, without the prior written consent of Employer: (i)
furnish anyone with the name of, or any list or lists which identify, any
customers or stockholders of the Employer or utilize such list or information
himself; (ii) furnish, use, or divulge to anyone any confidential information of
Employer acquired by him from Employer and relating to Employer's business
activities; (iii) contact directly or indirectly any customer of Employer for
the purpose of soliciting such person's business for another bank or similar
financial institution; (iv) hire for any other employer (including himself) any
employee of Employer or directly or indirectly cause such employee to leave his
or her employment to work for another; (v) pursue an actual or potential
business opportunity of interest to and which could be pursued by Employer which
came to the attention of Employee in connection with his employment with
Employer and which Employee had not previously offered in writing to Employer
with sufficient advance notice to allow Employer to examine and pursue or reject
such opportunity. Excepted from the requirements of subparagraphs (i) and (ii)
in this paragraph is any information which is or becomes publicly available
information through no fault or act of Employee.

          9.4 It is understood and agreed by the parties hereto that the
provisions of this section are independent of each other, and to the extent any
provision or portion thereof shall be determined by a court of competent
jurisdiction to be unenforceable, such determination shall not affect the
validity or enforceability of any other provision of this paragraph or the
remainder of this Agreement.

     10. WAIVER OF PROVISIONS

          Failure by any of the parties hereto to insist, in one or more
instances, on performance by the other in strict accordance with the terms and
conditions of this Agreement shall not be deemed a waiver or relinquishment of
any right granted hereunder or of the obligation of future performance of any
such term or condition or of any other term or condition of this Agreement,
unless such waiver is contained in writing signed by or on behalf of all the
parties.

     11. GOVERNING LAW

          This Agreement shall be governed by and construed and enforced in
accordance with the laws of the Commonwealth of Virginia. If for any reason any
provision of this Agreement shall be held by a court of competent jurisdiction
to be void or unenforceable, the same shall not affect the remaining provisions
hereof.

     12. MODIFICATION AND AMENDMENT

          This Agreement contains the sole and entire agreement among the
parties hereto and supersedes all prior discussions and agreements among the
parties, and any such prior

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agreements shall, from and after the date hereof, be null and void. This
Agreement shall not be modified or amended except by an instrument in writing
signed by or on behalf of all parties hereto.

     13. COUNTERPARTS AND HEADINGS

          This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument. The headings set out herein are for
convenience of reference and shall not be deemed a part of this Agreement.

     14. INJUNCTIVE RELIEF

          In the event of a breach or threatened breach by Employee of any of
the provisions hereof, and notwithstanding any other provision in this
Agreement, Employer, in addition to any other available rights or remedies,
shall be entitled to such temporary restraining orders and permanent
injunctions, as are allowable and authorized by the laws of the Commonwealth of
Virginia based on the facts of the case, to restrain such breach by Employee
and/or any persons directly or indirectly acting for or with him. Employee's
obligations under paragraph 9 hereof shall remain binding and enforceable
according to its terms notwithstanding expiration or termination of the other
terms of this Agreement or the expiration or termination of Employee's
employment relationship with the Bank.

     15. SUCCESSORS

          This Agreement shall inure to the benefit of and be binding upon the
Employer, its successors and assigns and upon the Employee, and his heirs and
personal representatives. Neither this Agreement nor performance hereunder and
may be assigned by Employee or Employer.

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

                                            EMPLOYEE:

                                                 /s/ Bruce B. Nolte   (SEAL)
                                            --------------------------------

                                            EMPLOYER:

                                            TransCommunity Bankshares, Inc.

                                            By:  /s/ William C. Wiley (SEAL)
                                               -----------------------------

                                       8<PAGE>

                                                       Exhibit 4.7, Page 1 of 15

                                     FORM OF

                          PLEDGE AND SECURITY AGREEMENT

        PLEDGE AND SECURITY AGREEMENT dated as of August 14, 1994 made by
General Kinetics Incorporated ("GKI"), a Virginia corporation, to Gutzwiller &
Partner A.G. (the "Secured Party"), to secure up to $9,500,000 aggregate
                   -------------
principal amount of 1% Convertible Debentures due 2004 of GKI issued to the
Secured Party (the "Debentures").
                    ----------

        WHEREAS, GKI is the owner of certain assets and properties described in
Schedule I hereto, as the same may be supplemented hereafter; and

        WHEREAS, GKI, as an inducement to the Secured Party to purchase the
Debentures, now wishes to provide to the Secured Party a security interest in
such assets and properties;

        NOW, THEREFORE, in consideration of the premises and in order, inter
                                                                       -----
alia, to induce the Secured Party to purchase the Debentures, GKI hereby agrees
----
with the Secured Party for its benefit as follows:

        Section 1.     Grant of Security. GKI hereby assigns and pledges to the
                       -----------------
Secured Party for its benefit, and hereby grants to the Secured Party for its
benefit a security interest in, the following (collectively, the "Collateral"),
                                                                  ----------
to the extent it is lawfully able to do so:

        (a) all of GKI's right, title and interest in all of those plots, pieces
    or parcels of land, and all accessions thereto now owned by GKI (the
    "Land"), to the extent, if any, described in Part I of Schedule I attached
     ----
    hereto and made a part hereof, together with the right, title and interest
    of GKI, if any, in and to the following: (i) the streets, the land lying in
    the bed of any streets, roads or avenues, opened or proposed standing in
    front of, adjoining or abutting the Land to the center line thereof, the air
    space and development rights pertaining to the Land and right to use such
    air space and development rights, all rights of way, privileges, liberties,
    tenements, hereditaments and appurtenances belonging or in way appertaining
    thereto, all easements benefiting the Land and all royalties and all rights
    appertaining to the use and enjoyment of the Land, including, without
    limitation, all alley, vault, drainage, mineral, water, oil and gas rights,
    timber, sewers, pipes, conduits, wires and other facilities furnishing
    utility or other services to the Land and other similar rights, together
    with all of the buildings and other improvements erected on the Land, (ii)
    all rents, issues, profits, royalties, avails, income and other benefits
    derived or owned by GKI directly or indirectly from the foregoing property,
    (iii) all rights of GKI under all existing leases, licenses, occupancy
    agreements, concessions or other arrangements, whether written or oral,
    whereby GKI is granted the right to use, possess or occupy, or conduct any
    business on, or any estate in, the foregoing property or any part thereof,
    or whereby any person agrees to pay money to GKI or exchange other
    consideration with GKI for the use, possession or occupancy of, or the
    conducting of any business on, or any estate in, the foregoing property or
    any part thereof, and all rents, income, benefits, avails, advantages and
    claims against guarantors under any thereof, including, without limitation,
    the leases and mortgages, if any, set
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                                                       Exhibit 4.7, Page 2 of 15

    forth in Part I of Schedule I attached hereto and made a part hereof, and
    (iv) all rights of GKI, if any, to plans and specifications, designs,
    drawing and other matters prepared in connection with the foregoing property
    (any and all such property and related rights being the "Real Property");
                                                             -------------

        (b) all of GKI's right, title and interest now owned in and to all
    equipment to the extent, if any, described on Part II of Schedule I attached
    hereto and made a part hereof, in all of its forms, wherever located, all
    fixtures and all parts thereof and all accessions thereto (any and all such
    equipment, fixtures, parts and accessions being the "Equipment");
                                                         ---------

        (c) all of GKI's right, title and interest, whether now owned or
    hereafter acquired, in and to all inventory to the extent, if any, described
    on Part III of Schedule I attached hereto and made a part hereof, in all of
    its forms, wherever located, now or hereafter existing (including, but not
    limited to, (i) raw materials and work in process therefor, finished goods
    thereof and materials used or consumed in the manufacture or production
    thereof, (ii) goods in which GKI has an interest is mass or a joint or other
    interest or right of any kind (including, without limitation, goods as in
    which GKI has an interest or right as consignee) and (iii) goods that are
    returned to or repossessed by GKI), and all accessions thereto and products
    thereof and documents therefor (any and all such inventory, accessions,
    products and documents being the "Inventory");
                                      ---------

        (d) all of GKI's right, title and interest now owned in and to all
    accounts, contract rights, chattel paper, instruments, deposit accounts,
    general intangibles and other obligations of any kind to the extent, if any,
    described on Part IV of Schedule I attached hereto and made a part hereof,
    whether or not arising out of or in connection with the sale or lease of
    goods or the rendering of services, and all existing rights in and to all
    security agreements, leases and other contracts securing or otherwise
    relating to any such accounts, contract rights, chattel paper, instruments,
    deposit accounts, general intangibles or obligations, other than any
    governmental licenses, to the extent the assignment of any such license
    would violate applicable law (any and all such accounts, contract rights,
    chattel paper, instruments, deposit accounts, general intangibles and
    obligations, to the extent not referred to in clauses (e) and (f) below,
    being the "Receivables", and any and all such leases, security agreements
               -----------
    and other contracts being the "Related Contracts");
                                   -----------------

        (e) all of GKI's right, title and interest in and to each of the
    agreements benefiting GKI to which it is a party to the extent, if any,
    described on Part V of Schedule I attached hereto and made a part hereof, in
    each case as such agreements may be amended or otherwise modified from time
    to time (collectively, the "Assigned Agreements"), including, without
                                -------------------
    limitation, (i) all rights of GKI to receive moneys due and to become due
    under or pursuant to the Assigned Agreements, (ii) all rights of GKI to
    receive proceeds or any insurance, indemnity, warranty or guaranty with
    respect to the Assigned Agreements, (iii) claims of GKI for damages arising
    out of or for breach of or default under the Assigned Agreements and (iv)
    the right of GKI to terminate the Assigned Agreements, to perform thereunder
    and to compel performance and otherwise exercise all remedies thereunder
    (all such Collateral being the "Agreement Collateral");
                                    --------------------
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                                                       Exhibit 4.7, Page 3 of 15

        (f) to the extent, if any, described on Part VI of Schedule I attached
    hereto and made a part hereof, all copyrights, patents, registered designs
    (including applications and rights to apply therefor), inventions, rights in
    tradenames, trademarks and service marks, whether or not registered
    (including applications and rights to apply therefor), confidential
    information, trade secrets, know-how and fees, royalties and other rights or
    every nature deriving from or incidental to any of the foregoing (any and
    all such copyrights, patents, inventions and other proprietary rights being
    the "Intellectual Property");
         ---------------------

        (g) all proceeds of any and all of the foregoing Collateral, to the
    extent, if any, described on Part VII of Schedule I attached hereto and made
    a part hereof, including, without limitation, proceeds that constitute
    property of the types described in clauses (a) - (f) of this Section 1 and,
    to the extent not otherwise included, all (i) payments under insurance
    (whether or not the Secured Party is the loss payee thereof), or any
    indemnity, warranty or guaranty, payable by reason of loss or damage to or
    otherwise with respect to any of the foregoing Collateral and (ii) cash.

        Section 2.  Security for Obligations. This Agreement secures the payment
                    ------------------------
or performance of all obligations of GKI now or hereafter existing under the
Debentures or this Agreement (all such obligations being the "Obligations").
                                                              -----------
Without limiting the generality of the foregoing, this Agreement secures the
payment of all amounts that constitute part of the Obligations and would be owed
by GKI to the Secured Party under the Debentures or this Agreement but for the
fact that they are unenforceable or not allowable due to the existence of a
bankruptcy, reorganizing or similar proceeding involving GKI.

        Section 3.  GKI Remains Liable.  Anything herein to the contrary
                    ------------------
notwithstanding, (a) GKI shall remain liable under the contracts and agreements
included in the Collateral to the extent set forth therein to perform all of its
duties and obligations thereunder to the same extent as if this Agreement had
not been executed, (b) the exercise by the Secured Party of any of the rights
hereunder shall not release GKI from any of its duties or obligations under the
contracts and agreements included in the Collateral and (c) the Secured Party
shall have no obligation or liability whatsoever under the contracts and
agreements included in the Collateral and by reason of this Agreement, nor shall
the Secured Party be obligated to perform any of the obligations or duties of
GKI thereunder or to take any action to collect or enforce any claim for payment
assigned hereunder.

        Section 4.  Representations and Warranties.  GKI represents and
                    ------------------------------
warrants as follows:

        (a) Substantially all of the Equipment and Inventory are located at the
    places specified in Schedule I hereto. The chief place of business and chief
    executive office of GKI and the office where it keeps its records concerning
    the Receivables, and the original copies of each Assigned Agreement and all
    originals of all chattel paper that evidence Receivables, are located at the
    address specified on the signature pages hereof. None of the Receivables or
    Agreement Collateral is evidenced by a promissory note or other instrument.
<PAGE>

                                                       Exhibit 4.7, Page 4 of 15

        (b) Except as set forth on Schedule II hereto, GKI is the legal and
    beneficial owner of the Collateral free and clear of any material mortgage,
    pledge, lien, charge, security interest or other charge or encumbrance of
    any kind (including the charge upon property purchased under conditional
    sale or other title retention agreements securing any obligation of any
    person or any other kind of preferential arrangement having a similar
    effect) (hereinafter collectively referred to as "Encumbrances"), except for
                                                      ------------
    the security interests created by this Agreement. No effective financing
    statement or other instrument similar in effect covering all or any part of
    the Collateral is on file in any recording office.

        (c) GKI has exclusive possession and control of the Equipment and
    Inventory.

        (d) This Agreement and the pledge and assignment of the Collateral
    pursuant hereto create a valid and perfected first priority (except as noted
    on Schedule II hereto) security interest in substantially all of the
    Collateral, securing the payment of the Secured Obligations, and all filings
    and other actions necessary or desirable to perfect and protect such
    security interest have been duly taken.

        (e) No consent of any other person and no authorization, approval or
    other action by, and no notice to or filing with, any governmental authority
    or regulatory body or other third party is required either (i) for the grant
    by GKI of the assignment and security interest granted hereby or for the
    execution, delivery or performance of this Agreement in all material
    respects by GKI, (ii) for the perfection or maintenance of the pledge,
    assignment and security interest created hereby (including the priority of
    such pledge, assignment or security interest) other than the filing of
    financing statements in the appropriate jurisdictions or (iii) for the
    exercise by the Secured Party of its voting or other rights provided for in
    this Agreement or the remedies in respect of the Collateral pursuant to this
    Agreement; provided, however, that consents of third parties to leases,
    contracts and other agreements that are pledged hereunder may be required.

        Section 5.  Further Assurances.  (a) GKI agrees that from time to time,
                    ------------------
at its expense, it will promptly execute and deliver all further instruments and
documents, and take all further action, that may be reasonably necessary or
desirable, or that the Secured Party may reasonably request, in order to perfect
and protect any pledge, assignment or security interest granted or purported to
be granted hereby or to enable the Secured Party to exercise and enforce its
rights and remedies hereunder with respect to any Collateral. Without limiting
the generality of the foregoing, GKI will: (i) mark conspicuously each chattel
paper and all copies thereof included in the Receivables if any, and, at the
request of the Secured Party, each of its records pertaining to the Collateral,
with a legend, in form and substance satisfactory to the Secured Party,
indicating that such chattel paper or record is subject to the security interest
granted hereby; (ii) if any Collateral shall be evidenced by a promissory note
or other instrument, deliver and pledge to the Secured Party hereunder such note
or instrument duly endorsed and accompanied by duly executed instruments of
transfer or assignment, all in form and substance satisfactory to the Secured
Party; (iii) execute and file such financing or continuation statements, or
amendments thereto, and such other instruments or notices, as may be necessary
or desirable, or as the Secured Party may reasonably request, in order to
perfect and preserve the pledge, assignment and security interest granted or
purported to be granted hereby; and (iv) prepare,
<PAGE>

                                                       Exhibit 4.7, Page 5 of 15

supplement or amend, and attach hereto, such additions to the Schedules hereto
as the Secured Party may request from time to time to more particularly identify
the Collateral, together with such amendments hereto, if any, as may appropriate
to incorporate the same herein.

        (b) GKI hereby authorizes the Secured Party to file one or more
    financing or continuation statements, and amendments thereto, relating to
    all or any part of the Collateral without the signature of GKI where
    permitted by law. A photocopy or other reproduction of this Agreement or any
    financing statement covering the Collateral or any part thereof shall be
    sufficient as a financing statement where permitted by law.

        (c) GKI will furnish to the Secured Party from time to time statements
    and schedules further identifying and describing the Collateral and such
    other reports in connection with the Collateral as the Secured Party may
    reasonably request, all in reasonable detail.

        (d) GKI will use its reasonable efforts to secure any consents of third
    parties that may be necessary or appropriate in connection with the
    perfection or enforcement of any security interest granted or contemplated
    to be granted hereunder.

        Section 6.  Real Property, Equipment and Inventory.  (a) GKI shall use
                    --------------------------------------
reasonable efforts to maintain and preserve all of its Real Property, Equipment
and Inventory that are necessary to the conduct of its business substantially in
good working order and condition, ordinary wear and tear excepted.

        (b) GKI shall pay in a reasonable manner, given its financial position
    from time to time, (i) all property and other taxes, assessments and
    governmental charges or levies imposed upon GKI or its Real Property,
    Equipment and Inventory, and (ii) all lawful claims (including claims for
    labor, materials and supplies) that, if unpaid, might by law become an
    Encumbrance against, the Collateral; provided, however, that GKI shall not
                                         --------  -------
    be required to pay or discharge any such tax, assessment, charge or claim
    that is being contested in good faith and by proper proceedings and as to
    which appropriate reserves are being maintained.

        (c) GKI shall keep the Equipment and Inventory (other than Inventory
    sold in the ordinary course of business) at the places therefor, if any,
    specified in Section 4(a) or, upon 30 days' prior written notice to the
    Secured Party, at such other places in a jurisdiction where all action
    required by Section 5 shall have been taken with respect to the Equipment
    and Inventory.

        Section 7.  Insurance.  GKI shall, at its own expense, maintain
                    ---------
insurance with respect to the Real Property, Equipment and Inventory in such
amounts, against such risks, in such form and with such insurers, as shall be
reasonably customary and consistent with GKI's financial position from time to
time.

        Section 8.  Place of Perfection; Records; Collection of Receivables.
                    -------------------------------------------------------

        (a)         GKI shall, keep its chief place of business and chief
    executive office and the office where it keeps its records concerning the
    Collateral and the original
<PAGE>

                                                       Exhibit 4.7, Page 6 of 15

    copies of the Assigned Agreements and all originals of all chattel paper
    that evidence Receivables, at the location therefor specified in Section
    4(a) or, upon 30 days' prior written notice to the Secured Party, at such
    other locations in a jurisdiction where all actions required by Section 5
    shall have been taken with respect to the Collateral. GKI will hold and
    preserve such records, Assigned Agreements and chattel paper and will permit
    representatives of the Secured Party at any time during normal business
    hours to inspect and make abstracts from such records and chattel paper.

        (b) Except as otherwise provided in this subsection (b), GKI shall
    continue to collect, at its own expense, all amounts due or to become due
    GKI under the Receivables. In connection with such collections, GKI may take
    such action as GKI or the Secured Party may deem necessary or advisable to
    enforce collection of the Receivables; provided, however, that the Secured
                                           --------  -------
    Party shall have the right upon the occurrence and continuation of an Event
    of Default, upon written notice to GKI of its intention to do so, to notify
    the obligors under any Receivables of the assignment of such Receivables to
    the Secured Party and to direct such obligors to make payment of all amounts
    due or to become due to GKI thereunder directly to the Secured Party and,
    upon such notification and at the expense of GKI, to enforce collection of
    any such Receivables, and to adjust, settle or compromise the amount or
    payment thereof. After receipt by GKI of the notice from the Secured Party
    referred to in the proviso to the preceding sentence, (i) all amounts and
                       -------
    proceeds (including instruments) received by GKI in respect of the
    Receivables shall be received in trust for the benefit of the Secured Party
    hereunder, shall be segregated from other funds of GKI and shall be
    forthwith paid over to the Secured Party in the same form as so received
    (with any necessary endorsement) and either (A) released to GKI so long as
    no Event of Default shall have occurred and be continuing or (B) if any
    Event of Default shall have occurred and be continuing, applied as provided
    by Section 13(b) and (ii) GKI shall not adjust, settle or compromise the
    amount or payment of any material Receivable, release wholly or partly any
    obligor thereof, or allow any material credit or discount thereon.

        Section 9.   As to the Assigned Agreements.  GKI shall at its expense:
                     -----------------------------

        (a) perform and observe in all material respects all material terms and
    provisions of the Assigned Agreements to be performed or observed by it; and

        (b) furnish to the Secured Party such information and reports regarding
    the Collateral as the Secured Party may reasonably request.

        Section 10.  Payments Under the Assigned Agreements.  GKI agrees that,
                     --------------------------------------
upon the occurrence and continuation of an Event of Default, it will instruct
each other party to each Assigned Agreement that all payments due or to become
due under or in connection with such Assigned Agreement shall be made directly
to the Secured Party as it may specify.

        Section 11.  Transfers and other Encumbrances.  GKI shall not:
                     --------------------------------

        (a) sell, assign (by operation of law or otherwise) or otherwise dispose
    of, or grant any option with respect to, any material portion of the
    Collateral, except for sales of
<PAGE>

                                                       Exhibit 4.7, Page 7 of 15

    Inventory in the ordinary course of business or except for sales of
    Collateral in arms' length transactions for fair market value, or as
    permitted hereunder; or

        (b) create or suffer to exist any Encumbrance upon or with respect to
    any material portion of the Collateral except for the pledge, assignment and
    security interest created by this Agreement and Permitted Encumbrances as
    defined below.

        Section 12.  Secured Party's Duties.  The powers conferred on the
                     ----------------------
Security Party hereunder are solely to protect the interest of Secured Party in
the Collateral and shall not impose any duty upon it to exercise any such
powers. Except for the safe custody and preservation or any Collateral in its
possession or control and the accounting for moneys actually received by it
hereunder, the Secured Party shall have no duty as to any Collateral. The
Secured Party shall be deemed to have exercised reasonable care in the custody
and preservation of any Collateral in its possession if such Collateral is
accorded treatment substantially equal to that which it reasonably accords its
own property.

        Section 13.  Remedies.  If any Event of Default shall have occurred and
                     --------
be continuing:

        (a) The Secured Party may exercise in respect of the Collateral, in
    addition to other rights and remedies provided for herein or otherwise
    available to it, all the rights and remedies of a secured party upon default
    under the Uniform Commercial Code in effect in the Commonwealth of Virginia
    at such time (the "Uniform Commercial Code") (whether or not the Uniform
                       -----------------------
    Commercial Code applies to the affected Collateral).

        (b) All cash proceeds received by the Secured Party in respect of any
    sale of, collection from, or other realization upon all or any part of the
    Collateral shall be applied (after payment of any amounts payable to the
    Secured Party pursuant to Section 14) in whole or in part by the Secured
    Party for its benefit against all or any part of the Obligations and, with
    respect to principal and interest, in such order as the Secured Party shall
    elect. Any surplus of such cash or cash proceeds held by the Secured Party
    and remaining after payment in full of all the Obligations shall be paid
    over to GKI or to whomsoever may be lawfully entitled to receive such
    surplus.

        (c) The Secured Party may exercise any and all rights and remedies of
    GKI under or in connection with the Assigned Agreements or otherwise in
    respect of the Collateral, including, without limitation, any and all rights
    of GKI to demand or otherwise require payment of any amount under, or
    performance of any provision of, any Assigned Agreement.

        (d) All payments received by GKI under or in connection with any
    Assigned Agreement or otherwise in respect of the Collateral shall be
    received in trust for the benefit of the Secured Party, shall be segregated
    from other Party in the same form as so received (with any necessary
    endorsement).

        (e) For the purpose of this Agreement, an Event of Default shall mean
    (x) the failure of GKI to make any payment of principal or interest in
    respect of the Debentures when and as the same becomes due and payable or
    within ten (10) days thereafter; (y) the
<PAGE>

                                                       Exhibit 4.7, Page 8 of 15

    failure of GKI to pay or perform any of its other obligations under the
    Debentures when and as the same shall become due and payable or required to
    be performed or within thirty (30) days after written notice thereof to GKI
    by the Secured Party; or (z) default in the due observance or performance in
    all material respects of any covenant or agreement on the part of GKI
    contained herein, which default shall have continued for a period of thirty
    (30) days after written notice thereof to GKI by the Secured Party.

        Section 14.  Expenses.  GKI will upon demand pay to the Secured Party
                     --------
the amount of any and all reasonable expenses, including the reasonable fees and
expenses of its counsel and of any experts and agents, that the Secured Party
may necessarily incur in connection with (i) the custody, preservation, use or
operation of, or the sale of, collection from or other realization upon, any of
the Collateral, or (ii) the reasonable enforcement of any of the rights of
hereunder.

        Section 15.  Amendments; Waivers; Etc. No amendment or waiver of any
                     -------------------------
provision of this Agreement, and no consent to any departure by GKI herefrom,
shall in any event be effective unless the same shall be in writing and signed
by the Secured Party, and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given. No failure
on the part of the Secured Party to exercise, and no delay in exercising any
right hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right.

        Section 16.  Addresses for Notices.  All notices and other
                     ---------------------
communications proved for hereunder shall be in writing (including telecopier,
telegraphic, telex or cable communication) and, mailed, telegraphed, telecopied,
telexed, cable or delivered to GKI or to the Secured Party, as the case may be,
in each case addressed to it at the address specified on the signature page of
this Agreement or, as to either party, at such other address as shall be
designated by such party in a written notice to each other party complying as to
delivery with the terms of this Section. All such notices and other
communications shall, when mailed, telecopied, telegraphed, telexed or cabled,
respectively, be effective when deposited in the mails, telecopied, delivered to
the telegraph company, confirmed by telex answerback or delivered to the cable
company, respectively, addressed as aforesaid.

        Section 17.  Continuing Security Interest; Assignments. This Agreement
                     -----------------------------------------
shall create a continuing security interest in the Collateral and shall (a)
remain in full force and effect until the later of (x) the cash payment in full
and complete performance of the Debenture and (y) the date on which the
Debentures are converted into GKI Shares in accordance with the terms of the
Debentures (the "Conversion Date"), (b) be binding upon GKI, its successors and
                 ---------------
assigns and (c) inure, together with the rights and remedies of the Secured
Party hereunder, to the benefit of the Secured Party, its successors,
transferees and may not transfer or assign its rights hereunder except in
accordance with the transfer or assignment of the Debentures.

        Section 18.  Release and Termination. (a)  Upon any sale, lease,
                     -----------------------
transfer or other disposition of any item of Collateral in accordance with the
terms of this Agreement (other than sales of Inventory in the ordinary course of
business, and sales of other Collateral in arms' length transactions for fair
market value, as to which no such release shall be required), the
<PAGE>

                                                       Exhibit 4.7, Page 9 of 15

Secured Party will, at GKI's expense, execute and deliver to GKI such documents
as GKI shall reasonably request to evidence the release of such item of
Collateral from the assignment and security interest granted hereby; provided,
                                                                     --------
however, that at the time of such request and such release no Event of Default
-------
shall have occurred and be continuing, and (ii) GKI shall have delivered to the
Secured Party, at least five (5) business days prior to the date of the proposed
release, a written request for release describing the item of Collateral and the
material terms of the sale, lease, transfer or other disposition in reasonable
detail including the price thereof and any expenses in connection therewith,
together with a form of release for execution by the Secured Party.

        (b) Upon the later of cash payment in full and complete performance of
the Debentures or the Conversion Date, the pledge, assignment and security
interest granted hereby shall terminate and all rights to the Collateral shall
revert to GKI. Upon any such termination, the Secured Party will, at GKI's
expense, execute and deliver to GKI such documents as GKI shall reasonably
request to evidence such termination.

        Section 19.  Other Encumbrances.  In the event that any of the
                     ------------------
Collateral hereunder is also subject to a valid and enforceable lien under the
terms of any Permitted Encumbrance and the terms of such Permitted Encumbrance
are inconsistent with the terms of this Agreement, then with respect to such
Collateral, the terms of such Permitted Encumbrance shall be controlling in all
cases. As used herein, the term "Permitted Encumbrances" includes the following:
                                 ----------------------

        (a)   any Encumbrance which arises in respect of goods sold to GKI in
              the ordinary course of its business by virtue of retention of
              title provisions contained in the seller's standard conditions of
              sale;

        (b)   any Encumbrance arising by operation of law and securing
              obligations not more than 90 days overdue;

        (c)   any Encumbrance over goods and/or documents of title, insurance
              policies or sale contracts in relation to such goods, arising in
              the ordinary course of business in connection with letters of
              credit and similar transactions where such Encumbrance secures
              only so much of the acquisition cost of such good as is required
              to be paid within 180 days after the date upon which the relevant
              sale contract was first entered into;

        (d)   any Encumbrance over or affecting any asset acquired by GKI after
              the date hereof and subject to which such asset is acquired,
              provided that:

              (i) such Encumbrance was not created at the request of GKI in
                  contemplation of the acquisition of such asset by GKI; and

             (ii) the amount thereby secured has not been increased at the
                  request of GKI in contemplation of, or since the date of, any
                  acquisition of such asset by GKI; and
<PAGE>

                                                      Exhibit 4.7, Page 10 of 15

        (e)   any Encumbrance over or affecting any assets of any company which
              becomes a subsidiary of GKI after the date hereof, where such
              Encumbrance is created prior to the date on which such company
              becomes a subsidiary of GKI;

        (f)   any Encumbrance created after the date hereof over any owned or
              leased property of GKI solely for the purpose of securing
              indebtedness incurred to acquire such property, but only if such
              Encumbrance represents less than or is equal to the fair market
              value of such property prevailing at the time such Encumbrance is
              incurred;

        (g)   any Encumbrance which arises in respect of any judgment, decree or
              order of any court securing the payment of money not n excess of
              $100,000, either individually or in the aggregate, so long as such
              Encumbrance is adequately bonded and any appropriate legal
              proceedings which may have been duly initiated for the review of
              such judgment, decree or award will not have been finally
              terminated or the period within which such proceedings may be
              initiated will not have expired;

        (h)   any Encumbrance which arises in respect of taxes, assessments or
              governmental charges or claims not yet delinquent or which are
              being contested in good faith;

        (i)   any Encumbrance which arises in respect of security for payment of
              worker's compensation or other insurance or types of social
              security;

        (j)   any Encumbrance which arises in respect of good faith deposits in
              connection with tenders, contracts or other deposits to secure
              public or statutory obligations, or in lieu of surety or appeal
              bonds;

        (k)   any Encumbrance which arises in respect of certain surveys
              exception, title defects, encumbrances, easements, reservations
              of, or rights of others for, rights or way, sewers, electric
              lines, telegraph and telephone lines and other similar purposes or
              zoning or other restrictions as to the use of real property not
              interfering with the ordinary conduct of the business of the
              Company or any of its Subsidiaries;

        (l)   any Encumbrance which arises by operation of law in favor of
              carriers, warehousemen, mechanics, materialmen, laborers,
              employees or suppliers, incurred in the ordinary course of
              business for sums which are not yet delinquent or are being
              contested in good faith by negotiations or by appropriate
              proceedings which suspend the collection thereof;

        (m)   any Encumbrance which arises in respect of any interest or title
              of a lessor or lessee under any lease permitted hereunder
              (including any Lien granted by such lessor or lessee);

<PAGE>

                                                      Exhibit 4.7, Page 11 of 15

        (n)   any Encumbrance in favor of customs and revenue authorities
              arising as a matter of law to secure payment of customs duties in
              connection with the importation of goods;

        (o)   any Encumbrance which by its terms is effectively junior and
              subordinate in all material respects to the liens and security
              interests created and granted by this Agreement;

        (p)   any Encumbrance not specified above created in arms' length
              transactions for fair market value; and

        (q)   an existing Encumbrance in effect on the date of this Agreement
              and not created in anticipation hereof.

        Section 20.  Additional Lenders.  In the event that during the term of
                     ------------------
this Agreement GKI considers it advisable to secure additional funds pursuant to
an accounts receivable financing or working capital facility or agreement, or an
agreement for the creation of a security interest in work-in-progress, accounts
receivable or contract rights for the benefit of a vendor of materials, goods or
services to be incorporated in such work-in-progress, or used to generate such
accounts or perform under such contract (securing up to 120% of the price of
such materials, goods or services), from a bank or other financial institution
or other source (the "Additional Lender"), the Secured Party will, at the
request of GKI, promptly execute and deliver such documents, and take such other
action, as GKI shall reasonable request in order to:

        1     consent to the incurrence of indebtedness to the Additional Lender
              insofar as such consent may be necessary under the terms of this
              Agreement;

        2     permit GKI to grant to the Additional Lender a security interest
              in such property of GKI as shall be specified in GKI's request
              (the "Property"), which security interest shall be considered a
              Permitted Encumbrance for purposes of this Agreement;

        3     subordinate to the security interest in the Property granted to
              the Additional Lender as provided above the security interest
              granted to the Secured Party in the Property under this Agreement;
              and/or

        4     release the Property from the security interest granted to the
              Secured Party under this Agreement.

        Section 21.  Governing Law; Terms.  This Agreement shall be governed
                     --------------------
by and construed in accordance with the laws of the Commonwealth of Virginia,
except to the extent that the validity or perfection of the security interest
hereunder, or remedies hereunder, in respect of any particular Collateral are
governed by the laws of a jurisdiction other than the Commonwealth of Virginia.
Unless otherwise defined herein or in the Debentures, terms used in Article 9 of
the Uniform Commercial Code are used herein as therein defined.
<PAGE>

                                                      Exhibit 4.7, Page 12 of 15

         IN WITNESS WHEREOF, GKI has caused this Agreement to be duly executed
and delivered by its officer thereunto duly authorized as of the date first
above written.

                                         GENERAL KINETICS INCORPORATED

                                         Address for Notices:

                                         General Kinetics Incorporated
                                         13505 Dulles Technology Drive
                                         Herndon, Virginia 22071
                                         Attn: Corporate Secretary
                                         Fax:  703 - 713-6111

                                         GUTZWILLER & PARTNER A.G.

                                         Address for Notices:

                                         Gutzwiller & Partner A.G.
                                         Schindlerstrasse 26
                                         8036 Zurich
                                         Switzerland
                                         Fax:  01/362 28 11
<PAGE>

                                                      Exhibit 4.7, Page 13 of 15

                                   SCHEDULE I
                                   ----------

Part I -    Land. All Land presently or hereafter owned by GKI in which a valid
------      ----
            security interest may be granted without conflict with or breach of
            any existing mortgage or other agreement.

Part II -   Equipment. All Equipment presently or hereafter owned by GKI in
-------     ---------
            which a valid security interest may be granted without conflict with
            or breach of any existing agreement.

Part III -  Inventory. All Inventory presently or hereafter owned by GKI in
--------    ---------
            which a valid security interest may be granted without conflict with
            or breach of any existing agreement.

Part IV -   Receivables and Related Contracts. All Receivables and Related
-------     ---------------------------------
            Contracts owned by GKI in which a valid security interest may be
            granted without conflict with or breach of any existing agreement.

Part V -    Agreement Collateral. All Agreement Collateral in which GKI has
------      --------------------
            rights in which a valid security interest may be granted without
            conflict with or breach of any existing agreement.

Part VI -   Intellectual Property. All Intellectual Property of GKI in which a
-------     ---------------------
            valid security interest may be granted without conflict with or
            breach of any existing agreement.

            NOTWITHSTANDING ANYTHING TO THE CONTRARY in this Schedule I or
in the Pledge and Security Agreement to which this Schedule is attached, the
collateral referred to in Parts I through VI above shall not include any of the
following property, now owned and existing or hereafter created, acquired or
arising, regardless of where located (and such following property shall not
constitute Collateral for purposes of the Pledge and Security Agreement):

            (1) all of GKI's accounts, contract rights and other forms of
obligation arising in the ordinary cause of business from the sale or lease of
goods or rendition of services (whether or not accepted by any Additional Lender
or specifically sold to any Additional Lender or resold by any Additional Lender
to GKI and whether arising before or after termination of any agreement with any
Additional Lender);

            (2) all of GKI's present and future instruments, documents, chattel
paper and general intangibles (as those terms are defined in the Uniform
Commercial Code);

            (3) all reserves, balances, deposits, credits, moneys, securities
and other property at any time owing or belonging to GKI which are now or
hereafter in the possession of, or in transit to, any Additional Lender, whether
for safekeeping, pledge or otherwise (including, without limitation, all
holdbacks at any time owing by any Additional Lender to GKI, whether then or
thereafter payable, under any agreement);
<PAGE>

                                                      Exhibit 4.7, Page 14 of 15

            (4) all of GKI's claims against any Additional Lender at any time
existing;

            (5) all books and records and other property relating to any of the
foregoing and GKI's obligations (including, without limitation, repurchase and
resale obligations, processing fees, servicing fees, costs and expenses) to any
Additional Lender; and

            (6) all cash and non-cash proceeds and products of any of the
foregoing, including any claim against third parties in any way related to the
foregoing.

            For the avoidance of doubt, any security interest granted by
GKI in any of the foregoing items described in (1) through (6) above shall
constitute a Permitted Encumbrance for all purposes of the Pledge and Security
Agreement.

            The locations of substantially all Equipment and Inventory are:

            13505 Dulles Technology Drive, Herndon, VA 22071;

            110 Sunray Drive, Johnstown, PA 15905; and

            11205 Satellite Blvd., Orlando FL 32837;

or as GKI may otherwise specify from time to time.

            The chief place of business and chief executive office of GKI
and the office where GKI keeps referenced records is the address specified on
the signature pages of the Pledge and Security Agreement, or as GKI may
otherwise specify from time to time.
<PAGE>

                                                      Exhibit 4.7, Page 15 of 15

                                   SCHEDULE II
                                   -----------

                Mortgages with respect to land and real property.

                  Encumbrances of record on or prior to the date of the Pledge
and Security Agreement.

                  Security interests granted to or for the benefit of any
Additional Lender.

                  Permitted Encumbrances.

                  Filing of financing or continuation statements or other
instruments or notices with respect to the pledge, assignment and security
interest granted or purported to be granted by the Pledge and Security Agreement
shall be deferred until such time, if any, as any Additional Lender identified
by GKI shall consent thereto, which deferral shall constitute an exception to
the representations, warranties and agreements of GKI pursuant to Sections 4 and
5 of the Pledge and Security Agreement and otherwise.

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