Document:

<PAGE>

                               SECURITY AGREEMENT

        SECURITY AGREEMENT, dated as of December 28, 2000, made by CYNET, INC.,
a Texas corporation ("Borrower"), and each subsidiary of Borrower listed on the
signature pages hereof (Borrower and each such subsidiary being individually a
"Grantor" and collectively the "Grantors"), in favor of COMPAQ COMPUTER
CORPORATION, a Delaware corporation ("Lender").

                              W I T N E S S E T H :

        WHEREAS, pursuant to that certain Loan Agreement dated as of December
28, 2000 between Borrower and Lender (as the same may from time to time be
amended, modified or supplemented, the "Loan Agreement"), Lender has agreed to
make Term Loans (as defined in the Loan Agreement) to Borrower (the Term Loans
being collectively referred to herein as the "Loans"); and

        WHEREAS, Lender is willing to make the Loans but only upon the
condition, among others, that Grantor shall have executed and delivered to
Lender this Security Agreement.

        NOW, THEREFORE, in consideration of the premises and of the mutual
covenants herein contained and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and affirmed, the
parties hereto agree as follows:

1.      DEFINED TERMS. Unless otherwise defined herein, terms defined in the
Loan Agreement are used herein as therein defined, and the following terms
shall have the following meanings (such meanings being equally applicable to
both the singular and plural forms of the terms defined):

               "ACCOUNT DEBTOR" shall mean any "account debtor," as such term is
        defined in section 9.105(1)(a) of the UCC.

               "ACCOUNTS" shall mean any "account," as such term is defined in
        section 9.106 of the UCC, now owned or hereafter acquired by any Grantor
        and, in any event, shall include, without limitation, all accounts
        receivable, book debts and other forms of obligations (other than forms
        of obligations evidenced by Chattel Paper, Documents or Instruments) now
        owned or hereafter received or acquired by or belonging or owing to any
        Grantor (including, without limitation, under any trade names, styles or
        divisions thereof) whether arising out of goods sold or services
        rendered by such Grantor or from any other transaction, whether or not
        the same involves the sale of goods or services by any Grantor
        (including, without limitation, any such obligation which might be
        characterized as an account or contract right under the UCC) and all of
        any Grantor's rights in, to and under all purchase orders or receipts
        now owned or hereafter acquired by it for goods or services, and all of
        any Grantor's rights to any goods represented by any of the foregoing
        (including, without limitation, unpaid seller's rights of rescission,
        replevin, reclamation and stoppage in transit and rights to returned,
        reclaimed or repossessed goods), and all moneys due or to become due to
        any Grantor under all contracts for the sale of goods or the performance
        of services or both by such Grantor (whether or not yet

<PAGE>

        earned by performance on the part of such Grantor or in connection with
        any other transaction), now in existence or hereafter occurring,
        including, without limitation, the right to receive the proceeds of said
        purchase orders and contracts, and all collateral security and
        guarantees of any kind given by any Person with respect to any of the
        foregoing.

               "CHATTEL PAPER" shall mean any "chattel paper," as such term is
        defined in section 9.105(1)(b) of the UCC, now owned or hereafter
        acquired by any Grantor.

               "COLLATERAL" shall have the meaning assigned to such term in
        Section 2 of this Security Agreement.

               "CONTRACTS" shall mean all contracts, undertakings, or other
        agreements (other than rights evidenced by Chattel Paper, Documents or
        Instruments) in or under which any Grantor may now or hereafter have any
        right, title or interest, including, without limitation, with respect to
        an Account, any agreement relating to the terms of payment or the terms
        of performance thereof.

               "COPYRIGHTS" shall mean all of the following now or hereafter
        acquired by any Grantor: (i) all copyrights, registrations and
        applications therefor, (ii) all renewals and extensions thereof, (iii)
        all income, royalties, damages and payments now and hereafter due or
        payable or both with respect thereto, including, without limitation,
        damages and payments for past or future infringements or
        misappropriations thereof, (iv) all rights to sue for past, present and
        future infringements or misappropriations thereof, and (v) all other
        rights corresponding thereto throughout the world.

               "DOCUMENTS" shall mean any "documents," as such term is defined
        in section 9.105(1)(f) of the UCC, now owned or hereafter acquired by
        any Grantor.

               "EQUIPMENT" shall mean any "equipment," as such term is defined
        in section 9.109(2) of the UCC, now owned or hereafter acquired by any
        Grantor and, in any event, shall include, without limitation, all
        machinery, equipment, furnishings, fixtures, vehicles and computers and
        other electronic data-processing and other office equipment now owned or
        hereafter acquired by any Grantor and any and all additions,
        substitutions and replacements of any of the foregoing, wherever
        located, together with all attachments, components, parts, equipment and
        accessories installed thereon or affixed thereto.

               "GENERAL INTANGIBLES" shall mean any "general intangibles," as
        such term is defined in section 9.106 of the UCC, now owned or hereafter
        acquired by any Grantor and, in any event, shall include, without
        limitation, all right, title and interest which any Grantor may now or
        hereafter have in or under any Contract, all customer lists, Copyrights,
        Trademarks, Patents, rights in intellectual property, Licenses, permits,
        trade secrets, proprietary or confidential information, inventions
        (whether patented or patentable or not) and technical information,
        procedures, designs, knowledge, know-how, software, data bases, data,
        skill, expertise, experience, processes, models, drawings, materials and
        records now owned or hereafter acquired by any Grantor, goodwill and
        rights of indemnification.

                                       2
<PAGE>

               "HEREBY," "HEREIN," "HEREOF," "HEREUNDER" and words of similar
        import refer to this Security Agreement as a whole (including, without
        limitation, any schedules hereto) and not merely to the specific
        section, paragraph or clause in which the respective word appears.

               "INSTRUMENTS" shall mean any "instrument," as such term is
        defined in section 9.105(1)(i) of the UCC, now owned or hereafter
        acquired by any Grantor, other than instruments that constitute, or are
        a part of a group of writings that constitute, Chattel Paper.

               "INTELLECTUAL PROPERTY COLLATERAL" shall mean all of the
        Copyrights, Licenses, Patents, Trademarks and Trade Secrets as to which
        Lender has been granted a security interest hereunder.

               "INVENTORY" shall mean any "inventory," as such term is defined
        in section 9.109(4) of the UCC, now owned or hereafter acquired by any
        Grantor and, in any event, shall include, without limitation, all
        inventory, merchandise, goods and other personal property now owned or
        hereafter acquired by any Grantor which are held for sale or lease or
        are furnished or are to be furnished under a contract of service or
        which constitute raw materials, work in process or materials used or
        consumed or to be used or consumed in any Grantor's business, or the
        processing, packaging, delivery or shipping of the same, and all
        finished goods.

               "LICENSE" shall mean any Patent License, Trademark License or
        other license as to which Lender has been granted a security interest
        hereunder.

               "PATENT LICENSE" shall mean all of the following now owned or
        hereafter acquired by any Grantor: any written agreement granting any
        right to practice any invention on which a Patent is in existence.

               "PATENTS" shall mean all of the following now or hereafter owned
        by any Grantor: (i) all patents and patent applications, (ii) all
        inventions and improvements described and claimed therein, (iii) all
        reissues, divisions, continuations, renewals, extensions and
        continuations-in-part thereof, (iv) all income, royalties, damages and
        payments now and hereafter due and/or payable to such Company with
        respect thereto, including, without limitation, damages and payments for
        past or future infringements or misappropriations thereof, (v) all
        rights to sue for past, present and future infringements or
        misappropriations thereof, and (vi) all other rights corresponding
        thereto throughout the world.

               "PERMITTED LIENS" shall mean Liens permitted by Section 6.2 of
        the Loan Agreement to be existing as of the date hereof or to be created
        hereafter.

               "PROCEEDS" shall mean "proceeds," as such term is defined in
        section 9.306(1) of the UCC and, in any event, shall include, without
        limitation, (i) any and all proceeds of any insurance, indemnity,
        warranty or guaranty payable to any Grantor from time to time with
        respect to any of the Collateral, (ii) any and all payments (in any form
        whatsoever)

                                       3
<PAGE>

        made or due and payable to any Grantor from time to time in connection
        with any requisition, confiscation, condemnation, seizure or forfeiture
        of all or any part of the Collateral by any governmental body,
        authority, bureau or agency (or any person acting under color of
        governmental authority), (iii) any claim of any Grantor against third
        parties (A) for past, present or future infringement of any Patent or
        Patent License or (B) for past, present or future infringement or
        dilution of any Trademark or Trademark License or for injury to the
        goodwill associated with any Trademark, Trademark registration or
        Trademark licensed under any Trademark License and (iv) any and all
        other amounts from time to time paid or payable under or in connection
        with any of the Collateral.

               "SECURED OBLIGATIONS" shall mean (i) all of the unpaid principal
        amount of, and accrued interest on, the Notes, (ii) all prepayment,
        Commitment and other fees owing by Borrower under the Loan Agreement to
        Lender and (iii) all other Indebtedness, liabilities and obligations of
        any Loan Party to Lender, whether now existing or hereafter incurred,
        and whether created under, arising out of or in connection with the Loan
        Agreement, this Security Agreement, any of the other Loan Documents or
        otherwise.

               "SECURITY AGREEMENT" shall mean this Security Agreement, as the
        same may from time to time be amended, modified or supplemented and
        shall refer to this Security Agreement as in effect of the date such
        reference becomes operative.

               "TRADE SECRETS" shall mean trade secrets, along with any and all
        (i) income, royalties, damages and payments now and hereafter due and/or
        payable to any Grantor with respect thereto, including, without
        limitation, damages and payments for past or future infringements or
        misapproppriations thereof, (ii) rights to sue for past, present and
        future infringements or misappropriations thereof, and (iii) all other
        rights corresponding thereto throughout the world.

               "TRADEMARK LICENSE" shall mean all of the following now owned or
        hereafter acquired by any Grantor: any written agreement granting any
        right to use any Trademark or Trademark registration.

               "TRADEMARKS" shall mean all of the following now owned or
        hereafter acquired by any Grantor: (i) all trademarks (including service
        marks and trade names, whether registered or at common law),
        registrations and applications therefor, and the entire product lines
        and goodwill of such Grantor's business connected therewith and
        symbolized thereby, (ii) all renewals thereof, (iii) all income,
        royalties, damages and payments now and hereafter due or payable or both
        with respect thereto, including, without limitation, damages and
        payments for past or future infringements or misappropriations thereof,
        (iv) all rights to sue for past, present and future infringements or
        misappropriations thereof, and (v) all other rights corresponding
        thereto throughout the world.

               "UCC" shall mean the Uniform Commercial Code as the same may,
        from time to time, be in effect in the State of Texas; PROVIDED,
        HOWEVER, in the event that, by reason of mandatory provisions of law,
        any or all of the attachment, perfection or priority of

                                       4
<PAGE>

        Lender's security interest in any Collateral is governed by the Uniform
        Commercial Code as in effect in a jurisdiction other than the State of
        Texas, the term "UCC" shall mean the Uniform Commercial Code as in
        effect in such other jurisdiction for purposes of the provisions hereof
        relating to such attachment, perfection or priority and for purposes of
        definitions related to such provisions.

                2.   GRANT OF SECURITY INTEREST. (a) As collateral security for
the prompt and complete payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of all the Secured Obligations and to
induce Lender to enter into the Loan Agreement and to make the Loans in
accordance with the terms thereof, each Grantor hereby assigns, conveys,
mortgages, pledges, hypothecates and transfers to Lender, and hereby grants to
Lender, a security interest in, all of such Grantor's right, title and interest
in, to and under the following (all of which being hereinafter collectively
called the "Collateral"):

               (i) all Accounts of such Grantor, other than accounts receivable
        of the Borrower that are factored from time to time by Murphy Venture
        Partners, Inc. pursuant to the Factoring Agreement and Security
        Agreement dated August 7, 1998 (the "Encumbered Accounts Receivable");

              (ii)  all Chattel Paper of such Grantor;

             (iii)  all Contracts of such Grantor;

              (iv)  all Copyrights of such Grantor;

               (v)  all Documents of such Grantor;

              (vi)  all Equipment of such Grantor;

             (vii)  all General Intangibles of such Grantor;

            (viii)  all Instruments of such Grantor;

              (ix)  all Inventory of such Grantor;

               (x)  all Patent Licenses of such Grantor;

              (xi)  all Trade Secrets of such Grantor;

             (xii)  all Trademark Licenses of such Grantor;

            (xiii)  all other goods and personal property of such Grantor
        whether tangible or intangible or whether now owned or hereafter
        acquired by such Grantor and wherever located; and

             (xiv)  to the extent not otherwise included, all Proceeds of each
        of the foregoing and all accessions to, substitutions and replacements
        for, and rents, profits and product of each of the foregoing.

                                       5
<PAGE>

               (b) In addition, as collateral security for the prompt and
complete payment when due of the Secured Obligations and in order to induce
Lender as aforesaid, Lender is hereby granted a lien and security interest in
all property of each Grantor held by Lender, including, without limitation, all
property of every description, now or hereafter in the possession or custody of
or in transit to Lender for any purpose, including safekeeping, collection or
pledge, for the account of such Grantor, or as to which such Grantor may have
any right or power.

                3. RIGHTS OF LENDER; LIMITATIONS ON LENDER'S OBLIGATIONS. (a) It
is expressly agreed by each Grantor that, anything herein to the contrary
notwithstanding, such Grantor shall remain liable under each of its Contracts
and each of its Licenses to observe and perform all the conditions and
obligations to be observed and performed by it thereunder and each Grantor shall
perform all of its duties and obligations thereunder, all in accordance with and
pursuant to the terms and provisions of each such Contract or License. Lender
shall not have any obligation or liability under any Contract or License by
reason of or arising out of this Security Agreement or the granting to Lender of
a security interest therein or the receipt by Lender of any payment relating to
any Contract or License pursuant hereto, nor shall Lender be required or
obligated in any manner to perform or fulfill any of the obligations of any
Grantor under or pursuant to any Contract or License, or to make any payment, or
to make any inquiry as to the nature or the sufficiency of any payment received
by it or the sufficiency of any performance by any party under any Contract or
License, or to present or file any claim, or to take any action to collect or
enforce any performance or the payment of any amounts which may have been
assigned to it or to which it may be entitled at any time or times.

               (b) Lender authorizes each Grantor to collect its Accounts
provided that such collection is performed in a prudent and businesslike manner,
and Lender may, upon the occurrence and during the continuation of any Default
or Event of Default and without notice, limit or terminate said authority at any
time. If required by the Lender at any time during the continuation of any
Default or Event of Default, any Proceeds, when first collected by any Grantor,
received in payment of any such Account or in payment for any of its Inventory
or on account of any of its Contracts, shall be promptly deposited by such
Grantor in precisely the form received (with all necessary endorsements) in a
special bank account maintained by Lender subject to withdrawal by Lender only,
as hereinafter provided, and until so turned over shall be deemed to be held in
trust by such Grantor for and as Lender's property and shall not be commingled
with such Grantor's other funds or properties. Such Proceeds, when deposited,
shall continue to be collateral security for all of the Secured Obligations and
shall not constitute payment thereof until applied as hereinafter provided.
Lender shall apply all or a part of the funds on deposit in said special account
to the principal of or interest on or both in respect of any of the Secured
Obligations in accordance with the provisions of Section 8(d) hereof and any
part of such funds which Lender elects not so to apply and deems not required as
collateral security for the Secured Obligations shall be paid over from time to
time by Lender to such Grantor. If a Default or an Event of Default has occurred
and is continuing, at the request of Lender such Grantor shall deliver to the
Lender all original and other documents evidencing, and relating to, the sale
and delivery of such Inventory or the performance of labor or service which
created such Accounts, including, without limitation, all original orders,
invoices and shipping receipts; and, prior to the occurrence of a Default or an
Event of Default such Grantor shall deliver photocopies thereof to Lender at its
request.

                                       6
<PAGE>

               (c) Lender may at any time, upon the occurrence and during the
continuation of any Default or Event of Default (whether or not waived), after
first notifying each Grantor of its intention to do so, notify Account Debtors
of such Grantor, parties to the Contracts of such Grantor, obligors of
Instruments of such Grantor and obligors in respect of Chattel Paper of such
Grantor, other than, in any case, with respect to Encumbered Accounts
Receivable, that the Accounts (excluding the Encumbered Accounts Receivable) and
the right, title and interest of such Grantor in and under such Contracts, such
Instruments and such Chattel Paper have been assigned to Lender and that
payments shall be made directly to Lender. Upon the request of Lender, such
Grantor will so notify such Account Debtors, parties to such Contracts, obligors
of such Instruments and obligors in respect of such Chattel Paper, other than,
in any case, with respect to Encumbered Accounts Receivable. Upon the occurrence
and during the continuation of a Default or an Event of Default (whether or not
waived) Lender may in its own name or in the name of others communicate with
such Account Debtors, parties to such Contracts, obligors of such Instruments
and obligors in respect of such Chattel Paper to verify with such Persons to
Lender's satisfaction the existence, amount and terms of any such Accounts,
Contracts, Instruments or Chattel Paper, other than, in any case, with respect
to Encumbered Accounts Receivable.

               (d) Upon reasonable prior notice to each Grantor (unless a
Default or an Event of Default has occurred and is continuing, in which case no
notice is necessary), Lender shall have the right to make test verifications of
the Accounts (other than Encumbered Accounts Receivable) and physical
verifications of the Inventory in any manner and through any medium that it
considers advisable, and such Grantor agrees to furnish all such assistance and
information as Lender may require in connection therewith. Each Grantor at its
expense will cause certified independent public accountants satisfactory to
Lender to prepare and deliver to Lender at any time and from time to time
promptly upon Lender's request, the following reports: (i) a reconciliation of
all its Accounts (other than Encumbered Accounts Receivable), (ii) an aging of
all its Accounts (other than Encumbered Accounts Receivable), (iii) trial
balances, and (iv) a test verification of such Accounts (other than Encumbered
Accounts Receivable) as Lender may request. Such Grantor at its expense will
cause certified independent public accountants satisfactory to Lender to prepare
and deliver to Lender the results of the annual physical verification of its
Inventory made or observed by such accountants.

                4. REPRESENTATIONS AND WARRANTIES. Each Grantor hereby
represents and warrants that:

               (a) Except for the security interest granted to Lender pursuant
        to this Security Agreement and other Permitted Liens (including the
        first priority security interest granted in the Encumbered Accounts
        Receivable), such Grantor is the sole owner of each item of the
        Collateral in which it purports to grant a security interest hereunder,
        having good and marketable title thereto, free and clear of any and all
        Liens. No material amounts payable under or in connection with any of
        its Accounts (other than the Encumbered Accounts Receivable) or
        Contracts are evidenced by Instruments which have not been delivered to
        Lender.

                                       7
<PAGE>

               (b) No effective security agreement, financing statement,
        equivalent security or lien instrument or continuation statement
        covering all or any part of the Collateral is on file or of record in
        any public office, except such as may have been filed by such Grantor in
        favor of Lender pursuant to this Security Agreement or such as relate to
        other Permitted Liens.

               (c) Appropriate financing statements having been filed in the
        jurisdictions listed on Schedule I hereto, this Security Agreement is
        effective to create a valid and continuing first priority lien on and
        first priority perfected security interest in the Collateral with
        respect to which a security interest may be perfected by filing pursuant
        to the UCC, or by filing in the United States Patent and Trademark
        Office, in favor of Lender, prior to all other Liens, except Permitted
        Liens (other than the Lien granted to Lender under this Security
        Agreement), and is enforceable as such as against creditors of and
        purchasers from such Grantor (other than purchasers of Inventory in the
        ordinary course of business) and as against any purchaser of real
        property where any of the Equipment is located and any present or future
        creditor obtaining a Lien on such real property. All action necessary or
        desirable to protect and perfect such security interest in each item of
        the Collateral has been duly taken.

               (d) Such Grantor's principal place of business and the place
        where its records concerning the Collateral are kept and the location of
        its Inventory and Equipment set forth on Schedule II hereto, and such
        Grantor will not change such principal place of business or remove such
        records or change the location of its Inventory and Equipment unless it
        has taken such action as is necessary to cause the security interest of
        Lender in the Collateral to continue to be perfected. Such Grantor will
        not change its principal place of business or the place where its
        records concerning the Collateral are kept or change the location of its
        Inventory and Equipment without giving thirty (30) days' prior written
        notice thereof to Lender.

               (e) The amount represented by such Grantor to Lender from time to
        time as owing by each Account Debtor or by all Account Debtors in
        respect of the Accounts of such Grantor will at such time be the correct
        amount actually and unconditionally owing by such Account Debtors
        thereunder.

                5. COVENANTS. Each Grantor covenants and agrees with Lender that
from and after the date of this Security Agreement and until the Secured
Obligations are fully satisfied:

               (a) FURTHER DOCUMENTATION; PLEDGE OF INSTRUMENTS. At any time and
        from time to time, upon the written request of Lender, and at the sole
        expense of such Grantor, such Grantor will promptly and duly execute and
        deliver any and all such further instruments and documents and take such
        further action as Lender may reasonably deem desirable to obtain the
        full benefits of this Security Agreement and of the rights and powers
        herein granted, including, without limitation, using their best efforts
        to secure all consents and approvals necessary or appropriate for the
        assignment to Lender of any License or Contract held by such Grantor or
        in which such Grantor has any rights not heretofore assigned, the filing
        of any financing or continuation statements under the UCC

                                       8
<PAGE>

        with respect to the liens and security interests granted hereby,
        transferring Collateral to the Lender's possession (if a security
        interest in such Collateral can be perfected by possession), placing the
        interest of Lender as lienholder on the certificate of title of any
        vehicle and using its best efforts to obtain waivers of liens from
        landlords and mortgagees. Such Grantor also hereby authorizes Lender to
        file any such financing or continuation statement without the signature
        of such Grantor to the extent permitted by applicable law. If any amount
        payable under or in connection with any of the Collateral shall be or
        become evidenced by any Instrument, such Instrument shall be immediately
        pledged to Lender hereunder, and shall be duly endorsed in a manner
        satisfactory to Lender and delivered to Lender.

               (b) MAINTENANCE OF RECORDS. Such Grantor will keep and maintain
        at its own cost and expense satisfactory and complete records of the
        Collateral, including, without limitation, a record of all payments
        received and all credits granted with respect to the Collateral and all
        other dealings with the Collateral. Such Grantor will mark its books and
        records pertaining to the Collateral to evidence this Security Agreement
        and the security interests granted hereby. All Chattel Paper will be
        marked with the following legend: "This writing and the obligations
        evidenced or secured hereby are subject to the security interest of
        Compaq Computer Corporation". If requested by Lender, the security
        interest of the Lender shall be noted on the certificate of title of
        each vehicle. For Lender's further security, such Grantor agrees that
        Lender shall have a special property interest in all of such Grantor's
        books and records pertaining to the Collateral and, upon the occurrence
        and during the continuation of any Default or Event of Default, such
        Grantor shall deliver and turn over any such books and records to Lender
        or to its representatives at any time on demand of Lender. Prior to the
        occurrence of a Default or an Event of Default and upon reasonable
        notice from Lender, such Grantor shall permit any representative of
        Lender to inspect such books and records and will provide photocopies
        thereof to Lender.

               (c) INDEMNIFICATION. In any suit, proceeding or action brought by
        Lender relating to any Account, Chattel Paper, Contract, General
        Intangible or Instrument for any sum owing thereunder, or to enforce any
        provision of any Account, Chattel Paper, Contract, General Intangible or
        Instrument, such Grantor will save, indemnify and keep Lender harmless
        from and against all expense, loss or damage suffered by reason of any
        defense, setoff, counterclaim, recoupment or reduction of liability
        whatsoever of the obligor thereunder, arising out of a breach by such
        Grantor of any obligation thereunder or arising out of any other
        agreement, indebtedness or liability at any time owing to, or in favor
        of, such obligor or its successors from such Grantor, and all such
        obligations of such Grantor shall be and remain enforceable against and
        only against such Grantor and shall not be enforceable against Lender.

               (d) COMPLIANCE WITH LAWS, etc. Such Grantor will comply, in all
        material respects, with all acts, rules, regulations, orders, decrees
        and directions of any governmental authority, applicable to the
        Collateral or any part thereof or to the operation of such Grantor's
        business; PROVIDED, HOWEVER, that such Grantor may contest any act,
        regulation, order, decree or direction in any reasonable manner which
        shall not in the sole

                                       9
<PAGE>

        opinion of Lender adversely affect Lender's rights hereunder or
        adversely affect the first priority of its security interest in the
        Collateral.

               (e) PAYMENT OF OBLIGATIONS. Such Grantor will pay promptly when
        due all taxes, assessments and governmental charges or levies imposed
        upon the Collateral or in respect of its income or profits therefrom and
        all claims of any kind (including, without limitation, claims for labor,
        materials and supplies), except that no such charge need be paid if (i)
        such nonpayment does not involve any danger of the sale, forfeiture or
        loss of any of the Collateral or any interest therein, and (ii) such
        charge is adequately reserved against in accordance with and to the
        extent required by GAAP.

               (f) COMPLIANCE WITH TERMS OF ACCOUNTS, etc. In all material
        respects, such Grantor will perform and comply with all obligations in
        respect of Accounts, Chattel Paper, Contracts and Licenses and all other
        agreements to which it is a party or by which it is bound.

               (g) LIMITATION ON LIENS ON COLLATERAL. Such Grantor will not
        create, permit or suffer to exist, and will defend the Collateral
        against and take such other action as is necessary to remove, any Lien
        on the Collateral except Permitted Liens, and will defend the right,
        title and interest of Lender in and to any of such Grantor's rights
        under the Chattel Paper, Contracts, Documents, General Intangibles and
        Instruments and to the Equipment and Inventory and in and to the
        Proceeds thereof against the claims and demands of all Persons
        whomsoever.

               (h) LIMITATIONS ON MODIFICATIONS OF ACCOUNTS. Upon the occurrence
        and during the continuation of any Default or Event of Default, such
        Grantor will not, without Lender's prior written consent, grant any
        extension of the time of payment of any of the Accounts (other than
        Encumbered Accounts Receivable), Chattel Paper or Instruments,
        compromise, compound or settle the same for less than the full amount
        thereof, release, wholly or partly, any Person liable for the payment
        thereof, or allow any credit or discount whatsoever thereon other than
        trade discounts granted in the ordinary course of business of such
        Grantor.

               (i) MAINTENANCE OF INSURANCE. Such Grantor will maintain, with
        financially sound and reputable companies, insurance policies (i)
        insuring its Inventory and Equipment against loss by fire, explosion,
        theft and such other casualties as are usually insured against by
        companies engaged in the same or similar businesses and (ii) insuring
        such Grantor and Lender against liability for personal injury and
        property damage relating to such Inventory and Equipment, such policies
        to be in such amounts and against at least such risks as are usually
        insured against in the same general area by companies engaged in the
        same or a similar business, naming Lender as an additional insured with
        losses payable to such Grantor and Lender as their respective interests
        may appear under a standard "lender loss-payable" clause. Such Grantor
        shall, if so requested by Lender, deliver to Lender as often as Lender
        may reasonably request a report of a reputable insurance broker
        satisfactory to Lender with respect to the insurance on its Inventory
        and Equipment. All insurance with respect to the Inventory and Equipment

                                       10
<PAGE>

        shall (i) contain a clause which provides that Lender's interest under
        the policy will not be invalidated by any act or omission of, or any
        breach of warranty by, the insured, or by any change in the title,
        ownership or possession of the insured property, or by the use of the
        property for purposes more hazardous than is permitted in the policy,
        and (ii) provide that no cancellation, reduction in amount or change in
        coverage thereof shall be effective until at least ten (10) days after
        receipt by Lender of written notice thereof.

               (j) LIMITATIONS ON DISPOSITION. Such Grantor will not sell,
        lease, transfer or otherwise dispose of any of the Collateral, or
        attempt or contract to do so except as permitted by Section 6.5 of the
        Loan Agreement and except for sales of Inventory in the ordinary course
        of business.

               (k) FURTHER IDENTIFICATION OF COLLATERAL. Such Grantor will if so
        requested by Lender furnish to Lender, as often as Lender reasonably
        requests, statements and schedules further identifying and describing
        the Collateral and such other reports in connection with the Collateral
        as Lender may reasonably request, all in reasonable detail.

               (l) NOTICES. Such Grantor will advise Lender promptly, in
        reasonable detail, (i) of any material lien, security interest,
        encumbrance or claim made or asserted against any of the Collateral,
        (ii) of any material change in the composition of the Collateral, and
        (iii) of the occurrence of any other event which would have a material
        adverse effect on the aggregate value of the Collateral or on the
        security interests created hereunder.

               (m) RIGHT OF INSPECTION. Upon reasonable notice to such Grantor
        (unless a Default or an Event of Default has occurred and is continuing,
        in which case no notice is necessary), Lender shall at all times have
        full and free access during normal business hours to all the books and
        records and correspondence of such Grantor, and Lender or its
        representatives may examine the same, take extracts therefrom and make
        photocopies thereof, and such Grantor agrees to render to Lender, at
        such Grantor's cost and expense, such clerical and other assistance as
        may be reasonably requested with regard thereto. Upon reasonable notice
        to such Grantor (unless a Default or an Event of Default has occurred
        and is continuing, in which case no notice is necessary), Lender and its
        representatives shall also have the right to enter into and upon any
        premises where any of the Equipment or Inventory is located for the
        purpose of inspecting the same, observing its use or otherwise
        protecting its interests therein.

               (n) MAINTENANCE OF EQUIPMENT. Such Grantor will keep and maintain
        the Equipment in good operating condition sufficient for the
        continuation of the business conducted by such Grantor on a basis
        consistent with past practices, and such Grantor will provide all
        maintenance and service and all repairs necessary for such purpose.

               (o) CONTINUOUS PERFECTION. Such Grantor will not change its name,
        identity or corporate structure in any manner which might make any
        financing or continuation statement filed in connection herewith
        seriously misleading within the meaning of section 9.402(7) of the UCC
        (or any other then applicable provision of the UCC) unless such Grantor
        shall have given Lender at least thirty (30) days' prior written notice
        thereof and

                                       11
<PAGE>

        shall have taken all action (or made arrangements to take such action
        substantially simultaneously with such change if it is impossible to
        take such action in advance) necessary or reasonably requested by Lender
        to amend such financing statement or continuation statement so that it
        is not seriously misleading.

                (p)     COVENANTS REGARDING INTELLECTUAL PROPERTYCOLLATERAL.

                        (i) Such Grantor shall notify Lender immediately if it
                knows or has reason to know that any application or registration
                relating to any Trademark which is material to the conduct of
                such Grantor's business may become abandoned or dedicated, or of
                any adverse determination or development (including, without
                limitation, the institution of, or any such determination or
                development in, any proceeding in the United States Patent and
                Trademark Office or any court) regarding such Grantor's
                ownership of any Trademark which is material to the conduct of
                such Grantor's business, its right to register the same, or to
                keep and maintain the same.

                        (ii) In no event shall such Grantor, either itself or
                through any agent, employee, licensee or designee, file an
                application for the registration of any Trademark with the
                United States Patent or Trademark Office or any similar office
                or agency in any other country or any political subdivision
                thereof, unless it promptly informs Lender, and, upon request of
                Lender, executes and delivers any and all agreements,
                instruments, documents, and papers as Lender may request to
                evidence Lender's security interest in such Trademark and the
                General Intangibles, including, without limitation, the goodwill
                of such Grantor, relating thereto or represented thereby.

                        (iii) Such Grantor will take all necessary and
                appropriate actions, including, without limitation, in any
                proceeding before the United States Patent and Trademark Office,
                to maintain and pursue each application (and to obtain the
                relevant registration) and to maintain each registration of the
                Trademarks which are material to the conduct of such Grantor's
                business, including, without limitation, filing of applications
                for renewal, affidavits of use, affidavits of incontestability
                and opposition cancellation proceedings.

                        (iv) In the event that any of the Intellectual Property
                Collateral is infringed, misappropriated or diluted by a third
                party, such Grantor shall notify Lender promptly after it learns
                thereof and shall, unless such Grantor shall reasonably
                determine that such Intellectual Property Collateral is not
                material to the conduct of such Grantor's business, promptly sue
                for infringement, misappropriation or dilution and to recover
                any and all damages for such infringement, misappropriation or
                dilution, and take such other actions as such Grantor shall
                reasonably deem appropriate under the circumstances to protect
                such Intellectual Property Collateral.

                                       12
<PAGE>

                6. LENDER'S APPOINTMENT AS ATTORNEY-IN-FACT. (a) Each Grantor
hereby irrevocably constitutes and appoints Lender and any officer or agent
thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of such Grantor and in the name of such Grantor or in its own name, from
time to time in Lender's discretion, for the purpose of carrying out the terms
of this Security Agreement, to take any and all appropriate action and to
execute and deliver any and all documents and instruments which may be necessary
or desirable to accomplish the purposes of this Security Agreement and, without
limiting the generality of the foregoing, hereby gives Lender the power and
right, on behalf of such Grantor, without notice to or assent by such Grantor to
do the following:

                        (i) to ask, demand, collect, receive and give
                acquittances and receipts for any and all moneys due and to
                become due under any Collateral and, in the name of such Grantor
                or its own name or otherwise, to take possession of and endorse
                and collect any checks, drafts, notes, acceptances or other
                Instruments for the payment of moneys due under any Collateral
                and to file any claim or to take any other action or proceeding
                in any court of law or equity or otherwise deemed appropriate by
                Lender for the purpose of collecting any and all such moneys due
                under any Collateral whenever payable and to file any claim or
                to take any other action or proceeding in any court of law or
                equity or otherwise deemed appropriate by Lender for the purpose
                of collecting any and all such moneys due under any Collateral
                whenever payable;

                        (ii) to pay or discharge taxes, liens, security
                interests or other encumbrances levied or placed on or
                threatened against the Collateral, to effect any repairs or any
                insurance called for by the terms of this Security Agreement and
                to pay all or any part of the premiums therefor and the costs
                thereof; and

                        (iii) (A) to direct any party liable for any payment
                under any of the Collateral to make payment of any and all
                moneys due, and to become due thereunder, directly to Lender or
                as Lender shall direct; (B) to receive payment of and receipt
                for any and all moneys, claims and other amounts due, and to
                become due at any time, in respect of or arising out of any
                Collateral; (C) to sign and indorse any invoices, freight or
                express bills, bills of lading, storage or warehouse receipts,
                drafts against debtors, assignments, verifications and notices
                in connection with accounts and other Documents constituting or
                relating to the Collateral; (D) to commence and prosecute any
                suits, actions or proceedings at law or in equity in any court
                of competent jurisdiction to collect the Collateral or any part
                thereof and to enforce any other right in respect of any
                Collateral; (E) to defend any suit, action or proceeding brought
                against such Grantor with respect to any Collateral; (F) to
                settle, compromise or adjust any suit, action or proceeding
                described above and, in connection therewith, to give such
                discharges or releases as Lender may deem appropriate; (G) to
                license or, to the extent permitted by an applicable license,
                sublicense, whether general, special or otherwise, and whether
                on an exclusive or non-exclusive basis, any Copyright, Patent or
                Trademark, throughout the world for such term or terms, on such
                conditions, and in such

                                       13
<PAGE>

                manner, as Lender shall in its sole discretion determine; and
                (H) generally to sell, transfer, pledge, make any agreement with
                respect to or otherwise deal with any of the Collateral as fully
                and completely as though Lender were the absolute owner thereof
                for all purposes, and to do, at Lender's option and such
                Grantor's expense, at any time, or from time to time, all acts
                and things which Lender reasonably deems necessary to protect,
                preserve or realize upon the Collateral and Lender's Lien
                therein, in order to effect the intent of this Security
                Agreement, all as fully and effectively as such Grantor might
                do.

               (b) Lender agrees that, except upon the occurrence and during the
continuation of a Default or an Event of Default, it will forebear from
exercising the power of attorney or any rights granted to Lender pursuant to
this Section 6. Each Grantor hereby ratifies, to the extent permitted by law,
all that said attorneys shall lawfully do or cause to be done by virtue hereof.
The power of attorney granted pursuant to this Section 6 is a power coupled with
an interest and shall be irrevocable until the Secured Obligations are
indefeasibly paid in full.

               (c) The powers conferred on Lender hereunder are solely to
protect Lender's interests in the Collateral and shall not impose any duty upon
it to exercise any such powers. Lender shall be accountable only for amounts
that it actually receives as a result of the exercise of such powers and neither
it nor any of its officers, directors, employees or agents shall be responsible
to any Grantor for any act or failure to act, except for its own gross
negligence or willful misconduct.

               (d) Each Grantor also authorizes Lender, at any time and from
time to time upon the occurrence and during the continuation of any Default or
Event of Default, (i) to communicate in its own name with any party to any
Contract with regard to the assignment of the right, title and interest of such
Grantor in and under the Contracts hereunder and other matters relating thereto
and (ii) to execute, in connection with the sale provided for in Section 8
hereof, any endorsements, assignments or other instruments of conveyance or
transfer with respect to the Collateral.

                7. PERFORMANCE BY LENDER OF GRANTORS' OBLIGATIONS. If any
Grantor fails to perform or comply with any of its agreements contained herein
and Lender, as provided for by the terms of this Security Agreement, shall
itself perform or comply, or otherwise cause performance or compliance, with
such agreement, the reasonable expenses of Lender incurred in connection with
such performance or compliance, together with interest thereon at the rate then
in effect in respect of the Loans, shall be payable by such Grantor to Lender on
demand and shall constitute Secured Obligations secured hereby.

                8. REMEDIES, RIGHTS UPON DEFAULT. (a) If any Default or Event of
Default shall occur and be continuing, Lender may exercise in addition to all
other rights and remedies granted to it in this Security Agreement and in any
other instrument or agreement securing, evidencing or relating to the Secured
Obligations, all rights and remedies of a secured party under the UCC. Without
limiting the generality of the foregoing, each Grantor expressly agrees that in
any such event Lender, without demand of performance or other demand,
advertisement or notice of any kind (except the notice specified below of time
and place of public or private

                                       14
<PAGE>

sale) to or upon such Grantor or any other person (all and each of which
demands, advertisements and/or notices are hereby expressly waived to the
maximum extent permitted by the UCC and other applicable law), may forthwith
collect, receive, appropriate and realize upon the Collateral, or any part
thereof, and/or may forthwith sell, lease, assign, give an option or options to
purchase, or sell or otherwise dispose of and deliver said Collateral (or
contract to do so), or any part thereof, in one or more parcels at public or
private sale or sales, at any exchange or broker's board or at any of Lender's
offices or elsewhere at such prices as it may deem best, for cash or on credit
or for future delivery without assumption of any credit risk. Lender shall have
the right upon any such public sale or sales, and, to the extent permitted by
law, upon any such private sale or sales, to purchase the whole or any part of
said Collateral so sold, free of any right or equity of redemption, which equity
of redemption such Grantor hereby releases. Each Grantor further agrees, at
Lender's request, to assemble the Collateral and make it available to Lender at
places which Lender shall reasonably select, whether at such Grantor's premises
or elsewhere. The Lender shall apply the net proceeds of any such collection,
recovery, receipt, appropriation, realization or sale, as provided in Section
8(d) hereof, such Grantor remaining liable for any deficiency remaining unpaid
after such application, and only after so paying over such net proceeds and
after the payment by Lender of any other amount required by any provision of
law, including section 9.504(1)(c) of the UCC, need Lender account for the
surplus, if any, to such Grantor. To the maximum extent permitted by applicable
law, each Grantor waives all claims, damages, and demands against Lender arising
out of the repossession, retention or sale of the Collateral except such as
arise out of the gross negligence or wilful misconduct of Lender. Each Grantor
agrees that the Lender need not give more than ten (10) days' notice (which
notification shall be deemed given when mailed or delivered on an overnight
basis, postage prepaid, addressed to such Grantor at its address referred to in
Section 11 hereof) of the time and place of any public sale or of the time after
which a private sale may take place and that such notice is reasonable
notification of such matters. Each Grantor shall remain liable for any
deficiency if the proceeds of any sale or disposition of the Collateral are
insufficient to pay all amounts to which Lender is entitled, such Grantor also
being liable for the fees of any attorneys employed by Lender to collect such
deficiency.

               (b) Each Grantor also agrees to pay all costs of Lender,
including, without limitation, reasonable attorneys' fees, incurred in
connection with the enforcement of any of its rights and remedies hereunder.

               (c) Each Grantor hereby waives presentment, demand, protest or
any notice (to the maximum extent permitted by applicable law) of any kind in
connection with this Security Agreement or any Collateral.

               (d) The Proceeds of any sale, disposition or other realization
upon all or any part of the Collateral shall be distributed by Lender in the
following order of priorities:

               FIRST, to Lender in an amount sufficient to pay in full the
        expenses of Lender in connection with such sale, disposition or other
        realization, including all expenses, liabilities and advances incurred
        or made by Lender in connection therewith, including, without
        limitation, attorney's fees;

                                       15
<PAGE>

                SECOND, to Lender in an amount equal to the then unpaid
        principal of and accrued interest and prepayment premiums, if any, on
        the Secured Obligations;

                THIRD, to Lender in an amount equal to any other Secured
        Obligations which are then unpaid; and

                FINALLY, upon payment in full of all of the Secured Obligations,
        to pay to the Grantor, or its representative or as a court of competent
        jurisdiction may direct, any surplus then remaining from such Proceeds.

                9. GRANT OF LICENSE TO USE INTELLECTUAL PROPERTY COLLATERAL. For
the purpose of enabling Lender to exercise rights and remedies under Section 8
hereof at such time as Lender, without regard to this Section 9, shall be
lawfully entitled to exercise such rights and remedies, each Grantor hereby
grants to Lender an irrevocable, non-exclusive license (exercisable without
payment of royalty or other compensation to any Grantor) to use, license or
sublicense any Copyright, Patent, Trade Secret or Trademark, now owned or
hereafter acquired by such Grantor, and wherever the same may be located, and
including, without limitation, in such license reasonable access to all media in
which any of the licensed items may be recorded or stored and to all computer
and automatic machinery software and programs used for the compilation or
printout thereof.

                10. LIMITATION ON LENDER'S DUTY IN RESPECT OF COLLATERAL. Lender
shall not have any duty as to any Collateral in its possession or control or in
the possession or control of any agent or nominee of it or any income thereon or
as to the preservation of rights against prior parties or any other rights
pertaining thereto, except that Lender shall use reasonable care with respect to
the Collateral in its possession or under its control. Upon request of any
Grantor, Lender shall account for any moneys received by it in respect of any
foreclosure on or disposition of the Collateral.

                11. REINSTATEMENT. This Agreement shall remain in full force and
effect and continue to be effective should any petition be filed by or against
any Grantor for liquidation or reorganization, should any Grantor become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of any
Grantor's assets, and shall continue to be effective or be reinstated, as the
case may be, if at any time payment and performance of the Secured Obligations,
or any part thereof, is, pursuant to applicable law, rescinded or reduced in
amount, or must otherwise be restored or returned by any obligee of the Secured
Obligations, whether as a "voidable preference", "fraudulent conveyance", or
otherwise, all as though such payment or performance had not been made. In the
event that any payment, or any part thereof, is rescinded, reduced, restored or
returned, the Secured Obligations shall be reinstated and deemed reduced only by
such amount paid and not so rescinded, reduced, restored or returned.

                12. NOTICES. Except as otherwise provided herein, whenever it is
provided herein that any notice, demand, request, consent, approval, declaration
or other communication shall or may be given to or served upon any of the
parties by any other party, or whenever any of the parties desires to give or
serve upon any other communication with respect to this Security

                                       16
<PAGE>

Agreement, each such notice, demand, request, consent, approval, declaration or
other communication shall be in writing and either shall be delivered in person
with receipt acknowledged or sent by registered or certified mail, return
receipt requested, postage prepaid, or by telecopy and confirmed by telecopy
answerback addressed as follows:

               (a)    If to the Lender, at

                      Compaq Computer Corporation
                      20555 SH 249
                      Houston, Texas 77070
                      Attention:  Kyle Doda, Esq.
                      Telecopy Number:  (281) 518-1388

                      With a copy to

                      Weil, Gotshal & Manges LLP
                      700 Louisiana, Suite 1600
                      Houston, Texas 77002
                      Attention:  Charles E. Harrell, Esq.
                      Telecopy Number:  (713) 224-9511

               (b)    If to any Grantor, at

                      CYNET, Inc.
                      12777 Jones Road, Suite 400
                      Houston, Texas 77070
                      Attention:  Samuel C. Beale, Esq.
                      Telecopy Number:  (281) 897-8317

                      With a copy to

                      Chamberlain Hrdlicka White Williams & Martin
                      1200 Smith Street, Suite 1400
                      Houston, Texas 77002
                      Attention: James J. Spring III, Esq.
                      Telecopy Number:  (713) 658-2553

or at such other address as may be substituted by notice given as herein
provided. The giving of any notice required hereunder may be waived in writing
by the party entitled to receive such notice. Every notice, demand, request,
consent, approval, declaration or other communication hereunder shall be deemed
to have been duly given or served on the date on which personally delivered,
with receipt acknowledged, telecopied and confirmed by telecopy answerback or
three (3) Business Days after the same shall have been deposited in the United
States mail. Failure or delay in delivering copies of any notice, demand,
request, consent, approval, declaration or other communication to the persons
designated above to receive copies shall in no way adversely affect the
effectiveness of such notice, demand, request, consent, approval, declaration or
other communication.

                                       17
<PAGE>

                13. SEVERABILITY. Any provision of this Security Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

                14. NO WAIVER; CUMULATIVE REMEDIES. Lender shall not by any act,
delay, omission or otherwise be deemed to have waived any of its rights or
remedies hereunder, and no waiver shall be valid unless in writing, signed by
Lender, and then only to the extent therein set forth. A waiver by Lender of any
right or remedy hereunder on any one occasion shall not be construed as a bar to
any right or remedy which Lender would otherwise have had on any future
occasion. No failure to exercise nor any delay in exercising on the part of
Lender, any right, power or privilege hereunder, shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power or
privilege hereunder preclude any other or future exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies
hereunder provided are cumulative and may be exercised singly or concurrently,
and are not exclusive of any rights and remedies provided by law. None of the
terms or provisions of this Security Agreement may be waived, altered, modified
or amended except by an instrument in writing, duly executed by Lender and,
where applicable by the Grantors.

                15. SUCCESSORS AND ASSIGNS; GOVERNING LAW. (a) This Security
Agreement and all obligations of each Grantor hereunder shall be binding upon
the successors and assigns of such Grantor, and shall, together with the rights
and remedies of Lender hereunder, inure to the benefit of Lender, all future
holders of the Notes and their respective successors and assigns. No sales of
participations, other sales, assignments, transfers or other dispositions of any
agreement governing or instrument evidencing the Obligations or any portion
thereof or interest therein shall in any manner affect the security interest
granted to Lender hereunder.

               (b) This Security Agreement shall be governed by, and be
construed and interpreted in accordance with, the laws of the State of Texas,
without regard to the provisions thereof relating to conflict of laws.

                16. USE AND PROTECTION OF INTELLECTUAL PROPERTY COLLATERAL.
Notwithstanding anything to the contrary contained herein, unless a Default or
Event of Default has occurred and is continuing, Lender shall from time to time
execute and deliver, upon the written request of any Grantor, any and all
instruments, certificates or other documents, in the form so requested,
necessary or appropriate in the judgment of such Grantor to permit such Grantor
to continue to exploit, license, use, enjoy and protect the Intellectual
Property.

                17. FURTHER INDEMNIFICATION. Each Grantor agrees to pay, and to
save Lender harmless from, any and all liabilities with respect to, or resulting
from any delay in paying, any and all excise, sales or other similar taxes which
may be payable or determined to be payable with respect to any of the Collateral
or in connection with any of the transactions contemplated by this Security
Agreement.

                                       18
<PAGE>

                18. WAIVER OF JURY TRIAL. Each Grantor waives all right to trial
by jury in any action or proceeding to enforce or defend any rights or remedies
hereunder, under the Loan Agreement or under the other Loan Documents or
relating to each of the foregoing.

                                       19
<PAGE>

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

                                    CYNET, INC.

                                    By: /s/ Vincent W. Beale, Sr.
                                       -----------------------------------------
                                        Name: Vincent W. Beale, Sr.
                                             -----------------------------------
                                        Title: Chairman and CEO
                                              ----------------------------------

                                    SUBSIDIARIES:

                                    WORLDWIDE MARKETING SERVICES, INC.

                                    By: /s/ Vincent W. Beale, Sr.
                                       -----------------------------------------
                                        Name: Vincent W. Beale, Sr.
                                             -----------------------------------
                                        Title: Chairman and CEO
                                              ----------------------------------

                                    CYNET INTERACTIVE, LLC

                                    By: /s/ Vincent W. Beale, Sr.
                                       -----------------------------------------
                                        Name: Vincent W. Beale, Sr.
                                             -----------------------------------
                                        Title: Chairman and CEO
                                              ----------------------------------

Accepted and acknowledged by:

COMPAQ COMPUTER CORPORATION

By: /s/ Linda S. Auwers
   ------------------------------------------
    Name: Linda S. Auwers
         ------------------------------------
    Title:  Vice President, Associate General
            Counsel and Corporate Secretary
            ---------------------------------

                                       20
<PAGE>

                                                                      SCHEDULE I

                                     FILINGS

<TABLE>
<CAPTION>

GRANTOR                                   JURISDICTION                      FILING OFFICE
-------                                   ------------                      -------------
<S>                                       <C>                           <C>
CYNET, Inc.                                 Texas                       Secretary of State

Worldwide Marketing Services, Inc.          Texas                       Secretary of State

CYNET Interactive, LLC                      Texas                       Secretary of State
</TABLE>

                                       21
<PAGE>

                                                                     SCHEDULE II

                   LOCATION OF RECORDS AND CERTAIN COLLATERAL

<TABLE>
<CAPTION>

                                    PRINCIPAL PLACE OF                  LOCATION OF INVENTORY
GRANTOR                             BUSINESS AND LOCATION OF RECORDS    AND EQUIPMENT
-------                             --------------------------------    ---------------------
<S>                                 <C>                                 <C>

CYNET, Inc.                         12777 Jones Road, Suite 400         12777 Jones Road, Suite 400
                                    Houston, Texas 77070                Houston, Texas 77070

Worldwide Marketing Services, Inc.  12777 Jones Road, Suite 400         12777 Jones Road, Suite 400
                                    Houston, Texas 77070                Houston, Texas 77070

CYNET Interactive, LLC              12777 Jones Road, Suite 400         12777 Jones Road, Suite 400
                                    Houston, Texas 77070                 Houston, Texas 77070

</TABLE>

                                       22<PAGE>

                                                                    Exhibit 10.3

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

                                 LOAN AGREEMENT

                                     between

                                  CYNET, Inc.,

                                 as the Borrower

                                       and

              CRTLP, Inc., G&B McIntosh Family Limited Partnership
                        and the McIntosh Revocable Trust

                                 as the Lenders

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

<PAGE>

                                TABLE OF CONTENTS

                                                                           Page
Article I - DEFINITIONS.......................................................1

           SECTION 1.1. Definitions...........................................1

           SECTION 1.2. Other Definitional Provisions.........................7

Article II - AMOUNT AND TERMS OF THE LOAN.....................................7

           SECTION 2.1. The Loan..............................................7

           SECTION 2.2. Evidence of Debt......................................8

           SECTION 2.3. Optional Prepayment...................................8

           SECTION 2.4. Payments..............................................8

           SECTION 2.5. Interest Rate.........................................9

           SECTION 2.6. Computation of Interest...............................9

           SECTION 2.7. Application of Payments...............................9

           SECTION 2.8. Single Loan...........................................9

           SECTION 2.9. Taxes.................................................9

Article III - REPRESENTATIONS AND WARRANTIES.................................10

           SECTION 3.1. Financial Information................................10

           SECTION 3.2. No Change............................................10

           SECTION 3.3. Existence; Compliance with Law.......................10

           SECTION 3.4. Subsidiaries.........................................11

           SECTION 3.5. Power; Authorization; Enforceable Obligations........11

           SECTION 3.6. Full Disclosure......................................11

           SECTION 3.7. Other Ventures.......................................12

           SECTION 3.8. No Legal Bar.........................................12

           SECTION 3.9. No Material Litigation...............................12

           SECTION 3.10. No Default..........................................12

           SECTION 3.11. Ownership of Property; Liens........................12

           SECTION 3.12. Intellectual Property...............................12

           SECTION 3.13. No Burdensome Restrictions..........................13

           SECTION 3.14. Taxes...............................................13

           SECTION 3.15. Federal Regulations.................................13

                                       i

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

                                                                           Page
           SECTION 3.16. ERISA...............................................14

           SECTION 3.17. Labor Matters.......................................14

           SECTION 3.18. Investment Company Act, Other Regulations...........14

           SECTION 3.19. Ownership of Borrower...............................14

           SECTION 3.20. Environmental Matters...............................15

           SECTION 3.21. Insurance...........................................16

           SECTION 3.22. Material Agreements.................................16

           SECTION 3.23. Security Interests..................................16

           SECTION 3.24. Solvency............................................16

Article IV - CONDITIONS PRECEDENT............................................17

           SECTION 4.1.  Conditions to the Initial Advance...................17

                     (a) Loan Documents......................................17

                     (b) Related Agreements..................................17

                     (c) Warrant.............................................17

                     (d) Organizational Documents............................17

                     (e) Proceedings of the Borrower.........................17

                     (f) Incumbency Certificates.............................17

                     (g) Third-Party Consents................................18

                     (h) Actions to Perfect Liens............................18

                     (i) No Default..........................................18

                     (j) No Injunction.......................................18

                     (k) [Term omitted] .....................................18

                     (l) Absence of Certain Changes..........................18

                     (m) Fees................................................18

                     (n) Legal Opinion.......................................19

                     (o) Solvency Certificate................................19

                     (p) Lien Searches.......................................19

                     (q) Insurance...........................................19

                     (r) Good Standing.......................................19

                                       ii
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

                                                                           Page
                     (s) Representations and Warranties......................19

                     (t) Approvals...........................................19

                     (u) Due Diligence.......................................19

                     (v) Additional Matters..................................20

Article V - AFFIRMATIVE COVENANTS............................................21

           SECTION 5.1. Delivery of Financial Information....................21

           SECTION 5.2. Conduct of Business and Maintenance of Existence.....22

           SECTION 5.3. Maintenance of Property; Insurance...................22

           SECTION 5.4. Inspection of Property; Books and Records;
                        Discussions..........................................22

           SECTION 5.5. Notices..............................................22

           SECTION 5.6. Environmental Laws...................................23

           SECTION 5.7. Lender's Fees........................................23

           SECTION 5.8. Further Assurances...................................23

Article VI - NEGATIVE COVENANTS..............................................23

           SECTION 6.1. Limitation on Indebtedness...........................23

           SECTION 6.2. Limitation on Liens..................................23

           SECTION 6.3. Limitation on Guarantee Obligations..................24

           SECTION 6.4. Limitation on Fundamental Changes....................24

           SECTION 6.5. Limitation on Sale of Assets.........................24

           SECTION 6.6. Limitation on Restricted Payments....................24

           SECTION 6.7. Limitation on Investments, Loans and Advances........24

           SECTION 6.8. Limitation on Cancellation of Indebtedness...........25

           SECTION 6.9. Limitation on Transactions with Affiliates...........25

           SECTION 6.10. Limitation on Sales and Leasebacks..................25

           SECTION 6.11. Limitation on Negative Pledge Clauses...............25

           SECTION 6.12. Limitation on Changes to Capital Structure..........25

           SECTION 6.13. Limitation on Events of Default.....................25

           SECTION 6.14. Limitation on Lines of Business.....................25

Article VII - EVENTS OF DEFAULT..............................................26

                                      iii

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

                                                                           Page
           SECTION 7.1. Events of Default....................................26

           SECTION 7.2. Remedies.............................................28

           SECTION 7.3. Rights Not Exclusive.................................28

Article VIII - MISCELLANEOUS.................................................28

           SECTION 8.1. Complete Agreement; Modification of Agreement........28

           SECTION 8.2. Notices..............................................29

           SECTION 8.3. No Waiver; Cumulative Remedies.......................30

           SECTION 8.4. Survival.............................................30

           SECTION 8.5. Payment of Expenses and Taxes; Indemnification.......30

           SECTION 8.6. Adjustments; Set-off.................................32

           SECTION 8.7. Counterparts.........................................32

           SECTION 8.8. Severability.........................................32

           SECTION 8.9. GOVERNING LAW........................................32

           SECTION 8.10. Submission To Jurisdiction; Waivers.................32

           SECTION 8.11. Acknowledgments.....................................33

           SECTION 8.12. WAIVERS OF JURY TRIAL...............................33

           SECTION 8.13. Conflict of Terms...................................34

           SECTION 8.14. Section Titles......................................34

           SECTION 8.15. Parties.............................................34

           SECTION 8.16. Authorized Signature................................34

           SECTION 8.17. Usury Savings Clause................................34

                                       iv

<PAGE>

                             EXHIBITS AND SCHEDULES

EXHIBIT A            Form of Warrant

EXHIBIT B            Form of Promissory Note

EXHIBIT C            Form of Legal Opinion

SCHEDULE 3.4         Subsidiaries

SCHEDULE 3.9         Material Litigation

SCHEDULE 3.12        Intellectual Property

SCHEDULE 3.19        Capital Stock of Borrower

SCHEDULE 3.22        Material Agreements

SCHEDULE 8.16        Authorized Signature

                                       i

<PAGE>

      This LOAN AGREEMENT, dated as of March 31, 2001 (this "Agreement"), is
between Cynet, Inc., a Texas corporation (the "Borrower"), and CRTLP, Inc., G&B
McIntosh Family Limited Partnership, and McIntosh Revocable Trust (collectively
the "Lender").

                              W I T N E S S E T H:

      WHEREAS, upon the terms and subject to the conditions set forth herein and
in the other Loan Documents, Lender has agreed to extend to Borrower a
$1,258,310 term loan;

      NOW, THEREFORE, in consideration of the mutual agreements contained herein
and subject to the satisfaction of the conditions set forth herein, the parties
hereto hereby agree as follows:

                             ARTICLE I - DEFINITIONS

      SECTION 1.1. Definitions. As used in this Agreement, the following terms
shall have the following meanings:

      "Affiliate" means as to any Person, any other Person which, directly or
indirectly, is in control of, is controlled by, or is under common control with,
such Person. For purposes of this definition, "control" of a Person means the
power, directly or indirectly, either to (a) vote 10% or more of the securities
having ordinary voting power for the election of directors of such Person or (b)
direct or cause the direction of the management and policies of such Person,
whether by contract or otherwise.

      "Agreement" means this Loan Agreement, as amended, supplemented or
otherwise modified from time to time.

      "Asset Sale" means any sale, lease, sale-leaseback, assignment or other
disposition by the Borrower of any of its property or assets, including any of
the Capital Stock of the Borrower.

      "Assignee Lender" means any holder of any of the Notes other than Lender.

      "Bankruptcy Code" has the meaning assigned to such term in Section 7.1(h).

      "Business" has the meaning assigned to such term in Section 3.20(b).

      "Business Day" means a day other than a Saturday, Sunday or other day on
which commercial banks in Houston, Texas are authorized or required by law to
close.

      "Capital Stock" means any and all shares, interests, participations or
other equivalents (however designated) of capital stock of a corporation, any
and all equivalent ownership interests in a Person (other than a corporation)
and any and all warrants, options or other rights to purchase any of the
foregoing.

                                       1
<PAGE>

      "Cash Equivalents" means (a) marketable direct obligations issued or
unconditionally guaranteed by the United States of America or any agency thereof
maturing within one year from the date of the acquisition thereof, (b)
commercial paper maturing no more than one year from the date of creation
thereof and at the time of their acquisition having the highest rating
obtainable from either Standard & Poor's Corporation or Moody's Investors
Service, Inc., and (iii) certificates of deposit, maturing no more than one year
from the date of creation thereof, issued by commercial banks incorporated under
the laws of the United States of America, each having combined capital, surplus
and undivided profits of not less than $500,000,000 and having a rating of "A"
or better by a nationally recognized rating agency.

      "Change of Control" shall be deemed to have occurred at such time as a
"person" or "group" (within the meaning of Section 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934, as amended) acquires record or beneficial
interest in more than 20% of the then outstanding voting securities of the
Borrower (including, for purposes hereof, any securities that are convertible
into or exchangeable, with or without payment of additional consideration in
cash or property, for such voting securities, either immediately or upon the
occurrence of a specified date or a specified event), either in a single
transaction or a series of transactions.

      "Closing Date" means the date on which the conditions set forth in Section
4.1 shall be satisfied and this Agreement and the Loan Documents, as hereinafter
defined, are executed.

      "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

      "Collateral" has the meaning assigned to such term in the Security
Agreement.

      "Commonly Controlled Entity" means an entity, whether or not incorporated,
which is under common control with the Borrower within the meaning of Section
4001 of ERISA or is part of a group which includes the Borrower and which is
treated as a single employer under Section 414 of the Code.

      "Contractual Obligation" means as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

      "Default" means any of the events specified in Section 7.1, whether or not
any requirement for the giving of notice, the lapse of time, or both, or any
other condition, has been satisfied.

      "Default Rate" has the meaning assigned to such term in Section 2.5(c).

      "Dollars" and "$" mean dollars in lawful currency of the United States of
America.

      "Environmental Laws" mean any and all foreign, Federal, state, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes,
decrees, requirements of any Governmental Authority or other Requirements of Law
(including common law) regulating, relating to or

                                       2
<PAGE>

imposing liability or standards of conduct concerning protection of human
health or the environment, as are now or may at any time hereafter be in effect.

      "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

      "Event of Default" means any of the events specified in Section 7.1,
provided that any requirement for the giving of notice, the lapse of time, or
both, or any other condition, has been satisfied.

      "Fair Labor Standards Act" means the Fair Labor Standards Act of 1938, as
amended from time to time.

      "Financial Statements" means the consolidated balance sheet of any Person
and its consolidated Subsidiaries and their related income and retained earnings
and cash flow statements for the period then ended.

      "Financing Lease" means any lease of property, real or personal, the
obligations of the lessee in respect of which are required in accordance with
GAAP to be capitalized on a balance sheet of the lessee.

      "GAAP" means generally accepted accounting principles in the United States
of America in effect from time to time.

      "Governmental Authority" means any nation or government, any state or
other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

      "Guarantee Obligation" means, as to any Person (the "guaranteeing
person"), any obligation of (a) the guaranteeing person or (b) another Person
(including, without limitation, any bank under any letter of credit) to induce
the creation of which the guaranteeing person has issued a reimbursement,
counter indemnity or similar obligation, in either case guaranteeing or in
effect guaranteeing any Indebtedness, leases, dividends or other obligations
(the "primary obligations") of any other third Person (the "primary obligor") in
any manner, whether directly or indirectly, provided, however, that the term
Guarantee Obligation shall not include endorsements of instruments for deposit
or collection in the ordinary course of business.

      "Highest Lawful Rate" has the meaning assigned to such term in Section
8.17.

      "Indebtedness" means, of any Person at any date, (a) all indebtedness of
such Person for borrowed money or for the deferred purchase price of property or
services (other than current trade liabilities incurred in the ordinary course
of business and payable in accordance with customary practices), (b) any other
indebtedness of such Person which is evidenced by a note, bond, debenture or
similar instrument, (c) all obligations of such Person under Financing Leases,
(d) all obligations of such Person in respect of acceptances issued or created
for the account of

                                       3
<PAGE>

such Person and (e) all liabilities secured by any Lien on any property owned by
such Person even though such Person has not assumed or otherwise become liable
for the payment thereof.

      "Indemnified Liabilities" has the meaning assigned to such term in Section
8.5(a).

      "Intellectual Property" has the meaning assigned to such term in Section
3.12.

      "Interest Rate" has the meaning assigned to such term in Section 2.5.

      "Lien" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security
interest or any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including, without limitation, any
conditional sale or other title retention agreement and any Financing Lease
having substantially the same economic effect as any of the foregoing).

      "Loan" has the meaning assigned to such term in Section 2.1.

      "Loan Documents" means this Agreement, each of the Notes, the Security
Agreement and all other security documents, including, without limitation, the
Warrant, hereafter delivered to the Lender or any Assignee Lender granting a
Lien on any asset or assets of any Person to secure the Obligations of the
Borrower hereunder and under any of the other Loan Documents or to secure any
guarantee of any such Obligations.

      "Loan Party" means the Borrower and each Subsidiary of the Borrower.

      "Material Adverse Effect" means a material adverse effect on (a) the
business, assets, property, condition (financial or otherwise), results of
operations or prospects of the Borrower, (b) the legality, validity or
enforceability of this Agreement or any of the other Loan Documents, (c)
perfection or priority of the Liens granted pursuant to any Loan Document, (d)
the ability of the Borrower to repay the Obligations or (e) the rights or
remedies of the Lender hereunder or under any other Loan Document.

      "Materials of Environmental Concern" means any hazardous or toxic
substances, materials or wastes, defined or regulated as such in or under any
Environmental Law.

      "Maturity Date" means the date that is the earliest of: (i) March 31, 2003
(ii) the date of a Change of Control and (iii) the initial date upon which the
Borrower receives any amount of proceeds from its sale of its fax broadcasting
operations under the Asset Purchase Agreement.

      "Multi-employer Plan" means a Plan which is a multi-employer plan as
defined in Section 4001(a)(3) of ERISA.

      "Net Proceeds" means the aggregate cash proceeds received by the Borrower
in respect of any issuance of Capital Stock after the Closing Date; any Asset
Sale; or any cash payments received in respect of promissory notes delivered to
the Borrower in respect of an Asset Sale; in each case net of (without
duplication) (A) the reasonable expenses (including legal fees and

                                       4
<PAGE>

brokers' and underwriters' commissions, lenders fees or credit enhancement fees,
in any case, paid to third parties or, to the extent expressly permitted hereby,
Affiliates) actually incurred and paid by Borrower in effecting such issuance or
sale and (B) any taxes directly attributable to such sale and actually paid or
payable by the Borrower.

      "Notes" has the meaning assigned to such term in Section 2.2.

      "Obligations" means the collective reference to the unpaid principal of
and interest on the Loan and any and all other indebtedness, obligations and
liabilities of the Borrower and its Subsidiaries to the Lender (including,
without limitation, interest accruing at the then applicable rate provided in
this Agreement after the maturity of the Loan), whether direct or indirect,
absolute or contingent, due or to become due, or now existing or hereafter
incurred, which may arise under, out of, or in connection with this Agreement,
the Notes or the other Loan Documents or any other document made, delivered or
given in connection herewith or therewith, in each case whether on account of
principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and disbursements
of counsel to the Lender that are required to be paid by the Borrower pursuant
to the terms of this Agreement, the Notes or any other Loan Documents).

      "PBGC" means the Pension Benefit Guaranty Corporation established pursuant
to Subtitle A of Title IV of ERISA.

      "Permitted Liens" means Liens expressly permitted under Section 6.2.

      "Person" means an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association,
joint venture, Governmental Authority or other entity of whatever nature.

      "Plan" means, at a particular time, any employee benefit plan which is
covered by ERISA and in respect of which the Borrower or a Commonly Controlled
Entity is (or, if such plan were terminated at such time, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.

      "Properties" has the meaning assigned to such term in Section 3.20(a).

      "Regulation G" means Regulation G of the Board of Governors of the Federal
Reserve System as in effect from time to time.

      "Regulation U" means Regulation U of the Board of Governors of the Federal
Reserve System as in effect from time to time.

      "Reportable Event" means any of the events set forth in Section 4043(b) of
ERISA, other than those events as to which the thirty day notice period is
waived under subsections .13, .14, .16, .18, .19 or .20 of PBGC Reg. ss. 2615.

                                       5
<PAGE>

      "Requirement of Law" means, as to any Person, the certificate of
incorporation, by-laws, articles of organization, operating agreement, limited
partnership agreement, or other organizational, constituent or governing
documents of such Person, and any law, statute, code, ordinance, treaty, rule or
regulation of any federal, state or other Governmental Authority, or
determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject.

      "Restricted Payment" means (i) the declaration of any dividend or the
incurrence of any liability to make any other payment or distribution of cash or
other property or assets in respect of the Borrower's Capital Stock, (ii) any
payment on account of the purchase, redemption or other retirement of Borrower's
Capital Stock or any other payment or distribution made in respect thereof,
either directly or indirectly, or (iii) any payment by the Borrower or any of
its Subsidiaries other than: (A) payments on the principal and accrued interest
of the Loan (whether scheduled, optional or mandatory), (B) any fees or other
amounts payable hereunder and/or (C) payments made in the ordinary course of the
Borrower's Business.

      "Security Agreement" means that certain Security Agreement, dated as of
even date herewith, made by Borrower in favor of the Lender.

      "Single Employer Plan" means any Plan which is covered by Title IV of
ERISA, but which is not a Multi-employer Plan.

      "Subsidiary" means, as to any Person, a corporation, partnership or other
entity of which shares of stock or other ownership interests having ordinary
voting power (other than stock or such other ownership interests having such
power only by reason of the happening of a contingency) to elect a majority of
the board of directors or other managers of such corporation, partnership or
other entity are at the time owned, or the management of which is otherwise
controlled, directly or indirectly through one or more intermediaries, or both,
by such Person. Unless otherwise qualified, all references to a "Subsidiary" or
to "Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries
of the Borrower.

      "Termination Date" means the earlier of (a) the Maturity Date and (b) the
date on which the Loan becomes due and payable pursuant to Section 7.2.

      "Trademark" means (a) all trademarks, trade names, corporate names,
company names, business names, fictitious business names, trade styles, service
marks, logos and other source or business identifiers, and the goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof, or otherwise, and (b) all renewals
thereof.

      "UCC" means, at any time, the Uniform Commercial Code in effect in the
State of Texas at such time.

                                       6
<PAGE>

      "U.S. Taxes" has the meaning assigned to such term in Section 2.9.

      "Warrant" means that certain warrant, to be delivered in connection
herewith by the Borrower to the Lender on the Closing Date, giving the Lender or
any holder thereof the right to purchase 4,779,693 shares of Class A Common
Stock, no par value, of the Borrower subject to the terms and conditions
thereof, which such warrant shall be substantially in the form of Exhibit A
hereto.

      SECTION 1.2. Other Definitional Provisions.

            (a) Unless otherwise specified therein, all terms defined in this
Agreement shall have the defined meanings when used in any Note or any
certificate or other document made or delivered pursuant hereto.

            (b) As used herein and in the Note, and any certificate or other
document made or delivered pursuant hereto, accounting terms relating to the
Borrower and its Subsidiaries not defined in Section 1.1 and accounting terms
partly defined in Section 1.1, to the extent not defined, shall have the
respective meanings given to them under GAAP.

            (c) The words "hereof," "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Section,
subsection, Schedule and Exhibit references are to this Agreement unless
otherwise specified.

            (d) The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.

                    ARTICLE II - AMOUNT AND TERMS OF THE LOAN

      SECTION 2.1. The Loan.

            (a) On the terms and subject to the conditions contained in this
Agreement, the Lender agreed to lend the Borrower an aggregate principal amount
of $1,258,310 (the "Loan"). The Loan was effected under the terms and subject to
the conditions of this Agreement in multiple separate advances made to the
Borrower between August 2000 and December 2000.

      SECTION 2.2. Evidence of Debt. On the Closing Date, the Borrower shall
execute and deliver promissory notes, substantially in the form of Exhibit B,
for the principal amount of the advances provided by the Lender to the Borrower.
For purposes hereof, the promissory notesdescribed in the previous sentence are
referred to individually as a "Note" and collectively as the "Notes", and such
references shall include additional promissory notes, if any, evidencing the
interests evidenced by the foregoing described Notes (including after assignment
of all or part of such interests), payable to the payee named therein or its
registered assigns.

      SECTION 2.3. Optional Prepayment. The Borrower may prepay the Loan at any
time, in whole only (and not in part), without premium or penalty, upon at least
five Business Days'

                                       7
<PAGE>

irrevocable notice to the Lender, specifying the date and amount of prepayment.
If any such notice is given under this Section 2.3, the Borrower shall pay all
outstanding principal, together with all accrued and unpaid interest to such
date and any other amount payable hereunder or in connection herewith, on the
date specified therein.

      SECTION 2.4. Payments.

            (a) On the Termination Date, the Loan shall be due and payable.

            (b) 100% of any insurance (including any refunds) and condemnation
proceeds shall be applied toward the prepayment of the Loan on each date of
receipt of such proceeds, after the application of such proceeds to the payment
of the loan made by Compaq Computer Corporation dated December 28, 2000.

            (c) 100% of the Net Proceeds from any Asset Sale shall be applied on
each date of receipt of such proceeds toward the prepayment of the Loan, after
the application of such proceeds to the payment of the loan made by Compaq
Computer Corporation dated December 28, 2000.

            (d) All payments (including prepayments) to be made by the Borrower
hereunder, whether on account of principal, interest, fees or otherwise, shall
be made without set-off, deduction or counterclaim and shall be made prior to
12:00 noon (Houston, Texas time) on the due date thereof to the Lender at the
Lender's office specified in Section 8.2, in Dollars and in immediately
available funds. If any payment hereunder becomes due and payable on a day other
than a Business Day, such payment shall be extended to the next succeeding
Business Day, and, with respect to payments of principal, interest thereon shall
be payable at the then applicable rate during such extension. Amounts of
principal paid on account of the Loan by the Borrower may not be reborrowed.

      SECTION 2.5. Interest Rate.

            (a) The Borrower shall pay to the Lender interest on the unpaid and
outstanding principal amount of the Loan and any accrued but unpaid interest
thereon for the period commencing on the Closing Date to but excluding the date
the Loan shall be paid in full, at an interest rate of 12% per annum (the
"Interest Rate"); provided, however, such interest rate shall not exceed the
maximum rate permitted by applicable law.

            (b) Interest shall be payable monthly in arrears from and after the
Closing Date and on the Termination Date, provided that interest accruing
pursuant to Section 2.5(c) shall be payable from time to time on demand.

            (c) In the event an Event of Default has occurred and is continuing
hereunder, the outstanding and unpaid principal of the Loan, any accrued and
unpaid interest thereon and any other unpaid amount payable hereunder or in
connection herewith shall bear interest at a rate of 18% per annum (the "Default
Rate") in each case from the date of such non-payment until such overdue
principal, interest, fees, expenses or other amount is paid in full (as well
after as

                                       8
<PAGE>

before judgment); provided, however, such interest rate shall not exceed the
maximum rate permitted by applicable law.

      SECTION 2.6. Computation of Interest. Interest shall be calculated on the
basis of a 360-day year for the actual days elapsed (including the first day but
excluding the last day). Each computation by the Lender of interest or fees
hereunder shall be conclusive and binding for all purposes, absent manifest
error.

      SECTION 2.7. Application of Payments. Borrower irrevocably waives the
right to direct the application of any and all payments at any time or times
hereafter received by Lender from or on behalf of Borrower, and Borrower
irrevocably agrees that Lender shall have the continuing exclusive right to
apply any and all such payments against the then due and payable Obligations of
Borrower and in repayment of the Loan as Lender may deem advisable. In the
absence of specific determination by the Lender with respect thereto, the same
shall be applied in the following order: (i) then due and payable fees and
expenses; (ii) then due and payable interest payments on the Loan; and (iii)
then due and payable principal payments on the Loan.

      SECTION 2.8. Single Loan. The Loan and all of the other Obligations of
Borrower arising under this Agreement and the other Loan Documents shall
constitute one general obligation of the Borrower secured, until payment by the
Borrower under Section 2.3 or 2.4 hereof, by all of the Collateral.

      SECTION 2.9. Taxes. All payments made by the Borrower under this Agreement
and the Notes shall be made free and clear of, and without deduction or
withholding for or on account of, any present or future income, stamp or other
taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now
or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority in the United States of America. If any such taxes,
levies, imposts, duties, charges, fees deductions or withholdings ("U.S Taxes")
are required to be withheld from any amounts payable to the Lender hereunder or
under any Note, the amounts so payable to the Lender shall be increased to the
extent necessary to yield to the Lender (after payment of all U.S. Taxes)
interest or any such other amounts payable hereunder at the rates or in the
amounts specified in this Agreement. Whenever any U.S. Taxes are payable by the
Borrower, as promptly as possible thereafter the Borrower shall send to the
Lender a certified copy of an original official receipt received by the Borrower
showing payment thereof. If the Borrower fails to pay any U.S. Taxes when due to
the appropriate taxing authority or fails to remit to the Lender the required
receipts or other required documentary evidence, the Borrower shall indemnify
the Lender for any incremental taxes, interest or penalties that may become
payable by the Lender as a result of any such failure. Notwithstanding anything
herein to the contrary, the agreements in this subsection shall survive the
termination of this Agreement and the payment of the Loan and all other amounts
payable hereunder.

                  ARTICLE III - REPRESENTATIONS AND WARRANTIES

      To induce the Lender to enter into this Agreement and to make the Loan,
the Borrower hereby represents and warrants as follows:

                                       9
<PAGE>

      SECTION 3.1. Financial Information.

            (a) The Financial Statements of the Borrower and its consolidated
Subsidiaries as at September 30, 2000, certified by the Chief Financial Officer
of the Borrower, and each other financial statement of the Borrower and its
consolidated Subsidiaries delivered to the Lender on or prior to the Closing
Date as and when delivered to the Lender fairly presents the consolidated
financial condition of the Borrower and its consolidated Subsidiaries as at the
date thereof and the consolidated results of their operations for the period
then ended, all in accordance with GAAP, consistently applied.

            (b) Neither the Borrower nor any of its Subsidiaries had at
September 30, 2000 any material obligation, contingent liability or liability
for taxes, long-term leases or unusual forward or long-term commitment which is
not reflected in the balance sheet at such date referred to in Section 3.1(a)
above or in the notes thereto.

      SECTION 3.2. No Change. Since the date of the Financial Statements under
Section 3.1(a) above, there has been no development or event which has had or
could reasonably be expected to have a Material Adverse Effect. During the
period from the date of such Financial Statements to and including the date
hereof, no dividends or other distributions have been declared, paid or made
upon the Capital Stock of the Borrower nor has any of the Capital Stock of the
Borrower been redeemed, retired, purchased or otherwise acquired for value by
the Borrower or any of its Subsidiaries.

      SECTION 3.3. Existence; Compliance with Law. The Borrower and each of its
Subsidiaries (a) is a corporation duly organized, validly existing and in good
standing under the laws of the state of its incorporation, (b) has the power and
authority, and the legal right, to own and operate property, to lease property
and to conduct its business as now, heretofore and proposed to be conducted, (c)
is duly qualified and in good standing under the laws of each jurisdiction
wherein the failure to be so qualified and in good standing could have a
Material Adverse Effect and (d) is in compliance with all Requirements of Law
except to the extent that the failure to comply therewith could not, in the
aggregate, have a Material Adverse Effect.

      SECTION 3.4. Subsidiaries. There currently exist no Subsidiaries of
Borrower other than those set forth on Schedule 3.4 hereto, which sets forth all
such Subsidiaries, together with their respective jurisdictions of incorporation
and the authorized and outstanding Capital Stock of each such Subsidiary, by
class and number and percentage of each class legally owned by Borrower or a
Subsidiary of Borrower or any other Person, or to be owned by the Closing Date.
There are no options, warrants, rights to purchase or similar rights of any
nature covering Capital Stock for any such Subsidiary.

      SECTION 3.5. Power; Authorization; Enforceable Obligations. The execution,
delivery and performance by the Borrower and its Subsidiaries of the Loan
Documents and all instruments and documents to be delivered by the Borrower and
its Subsidiaries, to the extent they are parties thereto, hereunder and
thereunder and the creation of all Liens provided for herein and therein: (i)
are within Borrower's and its Subsidiaries' corporate power; (ii) have

                                       10
<PAGE>

been, or by the Closing Date will be, duly authorized by all necessary or proper
corporate action; (iii) are not in contravention of any provision of the
Borrower's or its Subsidiaries' respective certificates or articles of
incorporation or by-laws; (iv) will not violate any law or regulation, or any
order or decree of any court or governmental instrumentality; (v) will not
conflict with or result in the breach or termination of, constitute a default
under or accelerate any performance required by, any indenture, mortgage, deed
of trust, lease, agreement or other instrument to which the Borrower or any of
its Subsidiaries is a party or by which Borrower or any of its Subsidiaries or
any of their property is bound; (vi) will not result in the creation or
imposition of any Lien upon any of the property of Borrower or any of its
Subsidiaries other than those in favor of Lender, all pursuant to the Loan
Documents; and (vii) do not require the consent or approval of any Governmental
Authority or any other Person. At or prior to the Closing Date, each of the Loan
Documents shall have been duly executed and delivered for the benefit of or on
behalf of Borrower or its Subsidiaries, as the case may be, and each shall then
constitute a legal, valid and binding obligation of the Borrower or its
Subsidiaries, to the extent they are parties thereto, enforceable against them
in accordance with its terms.

      SECTION 3.6. Full Disclosure.

            (a) All written statements prepared or furnished by or on behalf of
the Borrower in connection with any of the Loan Documents or the consummation of
the transactions contemplated thereby do not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
contained herein or therein, in light of the circumstances under which they were
made, not misleading. There are no facts known (or which should upon the
reasonable exercise of diligence be known) to the Borrower that, individually or
in the aggregate, could reasonably be expected to result in a Material Adverse
Effect and that have not been disclosed herein or in such other documents,
certificates and written statements furnished to the Lender for use in
connection with the transactions contemplated hereby.

            (b) All information supplied to the Lender by or on behalf of the
Borrower with respect to any of the Collateral (in each case taken as a whole
with respect to any particular Collateral) is accurate and complete in all
material respects.

      SECTION 3.7. Other Ventures. Neither the Borrower nor any of its
Subsidiaries is engaged in any joint venture or partnership with any other
Person.

      SECTION 3.8. No Legal Bar. The execution, delivery and performance of the
Loan Documents, the borrowings hereunder and the use of the proceeds thereof as
contemplated hereby will not violate any Requirement of Law or Contractual
Obligation of the Borrower or of any of its Subsidiaries and will not result in,
or require, the creation or imposition of any Lien on any of its or their
respective properties or revenues pursuant to any such Requirement of Law or
Contractual Obligation.

      SECTION 3.9. No Material Litigation. Except as set forth in Schedule 3.9,
no litigation, dispute, action, investigation or proceeding of or before any
arbitrator or Governmental

                                       11
<PAGE>

Authority is pending or, to the knowledge of the Borrower, threatened by or
against the Borrower or any Affiliate of the Borrower or against any of its or
their properties or revenues, which (a) is with respect to any of the Loan
Documents or any of the transactions contemplated hereby or thereby, or (b)
could reasonably be expected to have a Material Adverse Effect. Neither the
Borrower nor any of its properties is subject to any order, writ, judgment or
decree of any Governmental Authority

      SECTION 3.10. No Default. Neither the Borrower nor any of its Subsidiaries
is in default under or with respect to any Contractual Obligation owed by it
and, to the best knowledge of the Borrower, no other party is in default under
or with respect to any Contractual Obligation owed to the Borrower or any of its
Subsidiaries, other than, in either case, those defaults which individually or
in the aggregate could not have a Material Adverse Effect or are in respect to
payment of a trade payable.

      SECTION 3.11. Ownership of Property; Liens. The Borrower has good record
and marketable title in fee simple to, or a valid leasehold interest in, all its
real property, and good title to, or a valid leasehold interest in, all its
other property, and none of such property is subject to any Lien other than a
Permitted Lien.

      SECTION 3.12. Intellectual Property. Schedule 3.12 contains a true and
complete list of all copyrights, Trademarks, tradenames, service marks, patents
and patent applications, (collectively, the "Intellectual Property") which are
owned or used by the Company or which the Company has the right to use. The
Company has sufficient title and ownership of all of the Intellectual Property
necessary for its business as now conducted and proposed to be conducted without
any conflict with or infringement of the rights of others. Except as set forth
on Schedule 3.12, there are no outstanding options, licenses or agreements of
any kind relating to the Intellectual Property, nor is the Borrower bound by or
a party to any options, licenses or agreements of any kind with respect to the
patents, trademarks, service marks, trade names, copyrights, trade secrets,
licenses, information, proprietary rights and processes of any other Person or
entity. Except as set forth in Schedule 3.9, the Borrower has not received any
written communication alleging that it has violated or, by conducting its
business as proposed, would violate any of the patents, trademarks, service
marks, trade names, copyrights or trade secrets or other proprietary rights of
any other Person or entity. The Borrower is not aware that any of its employees
is obligated under any contract (including licenses, covenants or commitments of
any nature) or other agreement, or subject to any judgment, decree or order of
any court or administrative agency, that would interfere with the use of his or
her best efforts to promote the interests of the Borrower or that would conflict
with Borrower's business as proposed to be conducted. Neither the execution nor
delivery of this Agreement or the other Loan Documents, nor the carrying on of
the Borrower's business as proposed, will, to the best of the Borrower's
knowledge, conflict with or result in a breach of the terms, conditions or
provisions of, or constitute a default under, any contract, covenant or
instrument under which any of such employees is now obligated. The Borrower does
not believe it is or will be necessary to utilize any inventions of any of its
employees (or people to whom it has made written offers of employment) made
prior to or outside the scope of their employment by the Borrower, other than

                                       12
<PAGE>

inventions the lack of which would not have a Material Adverse Effect on the
business, properties, prospects or financial condition of the Borrower and its
Subsidiaries taken as a whole.

      SECTION 3.13. [INTENTIONALLY OMITTED].

      SECTION 3.14. Taxes. The Borrower has filed or caused to be filed all tax
returns that are required to be filed and has paid all taxes shown to be due and
payable on said returns or on any assessments made against it or any of its
property and all other taxes, fees or other charges imposed on it or any of its
property by any Governmental Authority (other than any the amount or validity of
which are currently being contested in good faith by appropriate proceedings and
with respect to which reserves in conformity with GAAP have been provided on the
books of the Borrower); no tax Lien has been filed, and, to the knowledge of the
Borrower, no claim is being asserted, with respect to any such tax, fee or other
charge.

      SECTION 3.15. Federal Regulations. No part of the proceeds of the Loan
will be used for "purchasing" or "carrying" any "margin stock" within the
respective meanings of each of the quoted terms under Regulation G or Regulation
U of the Board of Governors of the Federal Reserve System as now and from time
to time hereafter in effect. If requested by the Lender, the Borrower will
furnish to the Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-1 or FR Form U-1 referred to in said Regulation G or
Regulation U, as the case may be.

      SECTION 3.16. ERISA. Each Plan of the Borrower has complied in all
material respects with the applicable provisions of ERISA and the Code. No
termination of a Single Employer Plan has occurred, and no Lien in favor of the
PBGC or a Plan has arisen, during the five-year period prior to the date on
which this representation is made or deemed made with respect to any Plan. The
present value of all accrued benefits under each Single Employer Plan (based on
those assumptions used to fund such Plans) did not, as of the last annual
valuation date prior to the date on which this representation is made or deemed
made, exceed the value of the assets of such Plan allocable to such accrued
benefits. Neither the Borrower nor any Commonly Controlled Entity has had a
complete or partial withdrawal from any Multi-employer Plan, and neither the
Borrower nor any Commonly Controlled Entity would become subject to any
liability under ERISA if the Borrower or any such Commonly Controlled Entity
were to withdraw completely from all Multi-employer Plans as of the valuation
date most closely preceding the date on which this representation is made or
deemed made.

      SECTION 3.17. Labor Matters. There are no strikes or other labor disputes
against Borrower or any of its Subsidiaries pending or, to Borrower's knowledge,
threatened which would have a Material Adverse Effect. Hours worked by and
payment made to employees of Borrower and its Subsidiaries have not been in
violation of the Fair Labor Standards Act or any other applicable law dealing
with such matters which would have a Material Adverse Effect. All payments due
from Borrower or any of its Subsidiaries on account of employee health and
welfare insurance which would have a Material Adverse Effect if not paid have
been paid or accrued as a liability on the books of Borrower or such Subsidiary.

                                       13
<PAGE>

      SECTION 3.18. Investment Company Act, Other Regulations. The Borrower is
not an "investment company," or a company "controlled" by an "investment
company," within the meaning of the Investment Company Act of 1940, as amended.
The Borrower is not subject to regulation under any Federal or State statute or
regulation (other than Regulation X of the Board of Governors of the Federal
Reserve System) which limits its ability to incur Indebtedness.

      SECTION 3.19. Ownership of Borrower.

            (a) As of the date hereof, the authorized capital stock of the
Borrower consists of 100,000,000 shares of Class A Common Stock, no par value,
20,000,000 shares of Class B Common Stock, no par value, and 10,000,000 shares
of blank preferred stock. The issued and outstanding Capital Stock of the
Borrower consists solely of 32,273,427 shares of Class A Common Stock, 1,027,434
shares of Class B Common Stock, 3,331,200 shares of Series D Preferred Stock
which is convertible into 3,701,333 shares of Class A common stock, 1,601 shares
of Series E Preferred Stock which is convertible into 22,432,395 shares of Class
A common stock, 2,084 shares of Series F Preferred Stock which is convertible
into 29,199,944 shares of Class A common stock, 5,000,000 shares of Class A
Common Stock reserved for the exercise of Employee Incentive Stock Options and
13,318,449 shares of Class A and Class B Common Stock reserved for the exercise
of Warrants for Class A and Class B Common Stock. All outstanding shares of
Capital Stock of the Borrower are duly authorized, validly issued, fully paid
and non-assessable and are free and clear of any liens or encumbrances and are
not subject to preemptive rights or rights of first refusal. All outstanding
shares of Capital Stock and other securities of the Borrower were issued in
compliance with all applicable laws.

            (b) Except as set forth on Schedule 3.19, there are no options,
warrants, calls, rights, commitments or agreements of any character (i)
obligating the Borrower to issue, deliver, sell, repurchase or redeem any shares
of capital stock or any other securities of the Borrower; or (ii) obligating the
Borrower to grant, extend, accelerate the vesting of, change the price of, or
otherwise amend or enter into any such option, warrant, call, right, commitment
or agreement. Except as set forth on Schedule 3.19, there are no contracts,
commitments or agreements of any nature relating to voting, purchase or sale of
any of the Borrower's capital stock, including, without limitation, any
commitments to issue voting securities, and no agreements to participate in any
income of the Borrower.

            (c) The sale and delivery of the Warrants and the issuance of the
shares of common stock upon exercise thereof as contemplated by the Warrant are
not subject to any preemptive right, right of first refusal or other right or
restriction, except for restrictions pursuant to federal securities laws and
state "Blue Sky" laws. Upon delivery of the Warrant in accordance with this
Agreement and of the certificate(s) representing the shares of common stock
issuable upon exercise thereof in accordance with the Warrant, the Lender will
acquire good and marketable title to the Warrants and such shares of common
stock, free and clear of any lien, pledge, claim, charge, restriction or other
encumbrance and with no title defects, and will be entitled to all the rights of
a holder of such Warrants or shares of common stock as applicable.

                                       14
<PAGE>

      SECTION 3.20. Environmental Matters.

            (a) The facilities and properties owned, leased or operated by the
Borrower or any of its Subsidiaries (the "Properties") do not contain, and have
not previously contained, any Materials of Environmental Concern in amounts or
concentrations which (i) constitute or constituted a violation of, or (ii) could
reasonably be expected to give rise to liability under, any Environmental Law.

            (b) The Properties and all operations at the Properties are in
compliance, and have in the last five years been in compliance, with all
applicable Environmental Laws, and there is no contamination at, under or about
the Properties or violation of any Environmental Law with respect to the
Properties or the business operated by the Borrower or any of its Subsidiaries
(the "Business") which could interfere with the continued operation of the
Properties or materially impair the fair saleable value thereof.

            (c) Neither the Borrower nor any of its Subsidiaries has received
any notice of violation, alleged violation, non-compliance, liability or
potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the Properties or the Business, nor
does the Borrower have knowledge or reason to believe that any such notice will
be received or is being threatened.

            (d) Materials of Environmental Concern have not been transported or
disposed of from the Properties in violation of, or in a manner or to a location
which could reasonably be expected to give rise to liability under, any
Environmental Law, nor have any Materials of Environmental Concern been
generated, treated, stored or disposed of at, on or under any of the Properties
in violation of, or in a manner that could reasonably be expected to give rise
to liability under, any applicable Environmental Law.

            (e) No judicial proceeding or governmental or administrative action
is pending or, to the knowledge of the Borrower, threatened, under any
Environmental Law to which the Borrower or any Subsidiary is or will be named as
a party with respect to the Properties or the Business, nor are there any
consent decrees or other decrees, consent orders, administrative orders or other
orders, or other administrative or judicial requirements outstanding under any
Environmental Law with respect to the Properties or the Business.

            (f) There has been no release or threat of release of Materials of
Environmental Concern at or from the Properties, or arising from or related to
the operations of the Borrower or any Subsidiary in connection with the
Properties or otherwise in connection with the Business, in violation of or in
amounts or in a manner that could reasonably be expected to give rise to
liability under Environmental Laws.

      SECTION 3.21. Insurance. All policies of insurance of any kind or nature
of the Borrower and its Subsidiaries, including policies of fire, theft, product
liability, public liability, property damage, other casualty, employee fidelity,
workers' compensation, directors' and officers' liability and employee health
and welfare insurance, are in full force and effect and are

                                       15
<PAGE>

of a nature and provide such coverage as is customarily carried by companies of
the size and character of each such Person and comply with the requirements of
Section 5.3. The Borrower has not been refused insurance for any material
coverage for which it had applied or had any policy of insurance terminated
(other than at its request).

      SECTION 3.22. [INTENTIONALLY OMITTED].

      SECTION 3.23. Security Interests. At all times after execution and
delivery of each Loan Document by the parties thereto and the satisfaction of
the conditions specified in Section 4.1, the security interests created in favor
of the Lender under the Loan Documents will constitute legal, valid, perfected
security interests in all right, title and interest in the Collateral,
enforceable against the Borrower and its Subsidiaries, subject to no other
Liens, except as expressly permitted hereunder. The Liens granted to the Lender
pursuant to the Security Agreement will at the Closing Date be fully perfected
first priority Liens in and to the Collateral described therein.

      SECTION 3.24. [INTENTIONALLY OMITTED].

                        ARTICLE IV - CONDITIONS PRECEDENT

      SECTION 4.1. Conditions to the Closing. The agreement of the Lender to
close this Agreement and the Loan Documents is subject to the fulfillment,
immediately prior to or concurrently with the Closing Date, of the following
conditions precedent:

            (a) Loan Documents. The Lender shall have received (a) this
Agreement, executed and delivered by a duly authorized officer of the Borrower,
(b) the Notes executed and delivered by a duly authorized officer of the
Borrower and (c) each of the other Loan Documents, each executed and delivered
by a duly authorized officer of the Borrower.

            (b) Related Agreements. The Lender shall have received true and
correct copies, certified as to authenticity by the Chief Executive Officer of
the Borrower, of the principal documents relating to any financings the Borrower
may enter into and such other documents or instruments as may be requested by
the Lender to which the Borrower may be a party, all of which shall be in form
and substance satisfactory to the Lender.

            (c) Warrant. The Borrower shall issue and delivered to Lender the
Warrant;

            (d) Organizational Documents. The Lender shall have received a true
and complete copy of the articles of incorporation, as amended or otherwise
modified, and bylaws of the Borrower certified as of a recent date by the
Secretary of the Borrower, which shall be in full force and effect and in form
and substance satisfactory to the Lender.

                                       16
<PAGE>

            (e) Proceedings of the Borrower. The Lender shall have received a
copy of the resolutions, in form and substance satisfactory to the Lender, of
the Board of Directors of the Borrower, and as applicable its Subsidiaries,
authorizing (a) the execution, delivery and performance of this Agreement and
the other Loan Documents by the Borrower and, as applicable, its Subsidiaries
and (b) the granting by the Borrower and, as applicable, its Subsidiaries of the
Liens created pursuant to this Agreement and the other Loan Documents, certified
by the Secretary of the Borrower and of the applicable Subsidiaries as of the
Closing Date, which certificates shall be in form and substance satisfactory to
the Lender and shall state that the resolutions thereby certified have not been
amended, modified, revoked or rescinded.

            (f) Incumbency Certificates. The Lender shall have received a
certificate of the Borrower and each of its Subsidiaries, dated the Closing
Date, as to the incumbency and signature of the officers of the Borrower and
each of its Subsidiaries executing any Loan Document satisfactory in form and
substance to the Lender executed by the President or any Vice President and the
Secretary or any Assistant Secretary of the Borrower or such applicable
Subsidiary.

            (g) Third-Party Consents. All governmental, shareholder and third
party consents and approvals necessary or advisable in connection with the
execution, delivery and performance of this Agreement and the other Loan
Documents and the consummation of the transactions contemplated thereby and the
making of the Loan and the continuing operations of the Borrower shall have been
obtained and be in full force and effect, and all applicable waiting periods
shall have expired without any action being taken or threatened by any competent
authority which would restrain, prevent or otherwise impose materially adverse
conditions on the making of the Loan.

            (h) Actions to Perfect Liens. Subject to the lien filed by Compaq
Computer Corporation dated December 29, 2000, Lender will have a valid and
perfected first priority lien on and security interest in all of the Collateral
(whether now owned or hereafter acquired), which lien and security interest will
be enforceable against the applicable grantor thereof and all third parties and
will secure the obligations stated therein. All filings, recordations and other
actions necessary under any laws to perfect and protect such liens and security
interests as first-priority liens and security interests in the Collateral have
been, or will on the closing date be, duly taken.

            (i) No Default. No Default or Event of Default shall have occurred
and be continuing on such date or after giving effect to the advance under the
Loan as requested to be made on such date.

            (j) No Injunction. No law or regulation shall prohibit, and no
order, judgment or decree of any Governmental Authority shall enjoin, prohibit
or restrain, and no litigation shall be pending or threatened which, in the
judgment of the Lender, would enjoin, prohibit, prevent or restrain or impose
materially adverse conditions upon (a) the making of the Loan or any advance or
(b) the consummation of the transactions contemplated by any of the Loan
Documents.

            (k) [Intentionally omitted]

                                       17
<PAGE>

            (l) Absence of Certain Changes. The Lender shall have received a
certificate of the Chief Executive Officer of the Borrower, satisfactory in form
and substance to the Lender, stating that, as of such date, to the best of his
knowledge, after due and reasonable inquiry, no change has occurred in the
Business, assets, operations, prospects, or financial or other condition of the
Borrower and its Subsidiaries taken as a whole since September 30, 2000 that has
had or could reasonably be expected to have a Material Adverse Effect.

            (m) Fees. The Lender shall have received payment by the Borrower of
all fees, costs and expenses incurred by the Lender, including fees, costs and
expenses of Lender's outside counsel, that are due and payable under the terms
hereof or any of the Loan Documents as of the date of such advance of funds;
provided, that all such fees, costs and expenses may be paid contemporaneously
with such advance by agreeing that the amount of such fees, costs and expenses
shall be deemed to be part of the principal funded by the Lender with respect to
such advance.

            (n) Legal Opinion. The Lender shall have received an executed legal
opinion, dated the Closing Date, of March 31, 2001, counsel to the Borrower,
substantially in the form attached hereto as Exhibit C.

            (o) [Intentionally Omitted].

            (p) Lien Searches. The Lender shall have received the results of a
recent search by a Person satisfactory to the Lender, of the UCC, judgment and
tax lien filings which may have been filed with respect to personal property of
the Borrower and its Subsidiaries in each of the jurisdictions and offices where
assets of the Borrower or its Subsidiaries are located or recorded, and such
search shall reveal no material Liens on any of the assets of the Borrower or
its Subsidiaries except for Permitted Liens or Liens to be discharged on or
prior to the Closing Date pursuant to documentation in form and substance
satisfactory to the Lender.

            (q) Insurance. The Lender shall have received evidence in form and
substance satisfactory to it that all of the requirements of Section 5.3 shall
have been satisfied.

            (r) Good Standing. The Lender shall have received governmental
certificates, dated the most recent practicable date prior to the Closing Date,
with telegram updates where available, showing that the Borrower is incorporated
and in good standing in the jurisdiction of its incorporation and is qualified
as a foreign corporation and in good standing in all other jurisdictions in
which it is qualified to transact business.

            (s) Representations and Warranties. The Lender shall have received a
certificate of the Chief Executive Officer that the representations and warrants
contained in Article III are true and correct on and as of such date, before and
after giving effect to the

                                       18
<PAGE>

advance to be made hereunder on such date and the application of the proceeds
therefrom in accordance herewith.

            (t) Approvals. Receipt of all internal approvals of the transactions
contemplated by the Loan Documents by the Lender.

            (u) Due Diligence. Satisfactory completion of all due diligence with
respect to the transactions contemplated by the Loan Documents as deemed
necessary by the Lender, in its sole and absolute discretion, and its counsel,
including, without limitation, a liquidation valuation of the Collateral pledged
by the Borrower to Lender in connection with the transactions contemplated
hereunder and under the Loan Documents showing a value in excess of $ 760,000.

            (v) Additional Matters.

                  (i) All corporate and other proceedings, and all documents,
instruments and other tax and legal matters in connection with the transactions
contemplated by this Agreement or any other Loan Documents shall be satisfactory
in form and substance to the Lender, and the Lender shall have received such
other documents and legal opinions in respect of any aspect or consequence of
the transactions contemplated hereby or thereby as it shall request.

                  (ii) Borrower shall execute a closing certificate
acknowledging that the conditions contained in this Section 4.1 have been
satisfied.

                        ARTICLE V - AFFIRMATIVE COVENANTS

      The Borrower hereby agrees that, so long as the Loan remains in effect or
any amount is owing to the Lender hereunder or under any other Loan Document,
the Borrower shall, and shall cause each of its Subsidiaries to:

      SECTION 5.1. Delivery of Financial Information. Furnish to the Lender,
within 30 days after the end of each fiscal quarter, Financial Statements for
the fiscal quarter then ended, setting forth financial information regarding the
Borrower and its Subsidiaries, certified by the Chief Financial Officer of the
Borrower, prepared in conformity with GAAP and certified by an officer of the
Borrower with responsibility for financial matters as being fairly stated in all
material respects (subject to normal year-end audit adjustments); and provide to
Lender any additional financial information that the Lender requests.

      SECTION 5.2. Conduct of Business and Maintenance of Existence. Continue to
engage in Business of the same general type as now conducted by it or permitted
by Section 6.14 and preserve, renew and keep in full force and effect its
existence and take all reasonable action to maintain all rights, privileges and
franchises necessary or desirable in the normal conduct of its Business except
as otherwise permitted pursuant to Section 6.4; and comply with all Contractual
Obligations and Requirements of Law except to the extent that failure to comply
therewith could not, in the aggregate, have a Material Adverse Effect.

                                       19
<PAGE>

      SECTION 5.3. Maintenance of Property; Insurance. Keep all property useful
and necessary in its business in good working order and condition; maintain with
financially sound and reputable insurance companies insurance on all its
property in at least such amounts and against at least such risks as are
customarily insured against in the same general area by companies engaged in the
same or a similar business, with the loss payable clause for the benefit of the
Lender; furnish to the Lender, upon written request, full information as to the
insurance carried; and pay, and cause each of its Subsidiaries to pay, all
insurance premiums payable by them on or before the respective due dates
therefor.

      SECTION 5.4. Inspection of Property; Books and Records; Discussions. Keep
proper books of records and account in which full, true and correct entries in
conformity with GAAP and all Requirements of Law shall be made of all dealings
and transactions in relation to its business and activities; and permit
representatives of the Lender to visit and inspect any of its properties and
examine and make abstracts from any of its books and records at any reasonable
time and as often as may be desired and to discuss the business, operations,
properties and financial and other condition of the Borrower and its
Subsidiaries with officers and employees of the Borrower and its Subsidiaries
and with its independent certified public accountants.

      SECTION 5.5. Notices. Promptly give notice to the Lender of:

            (a) the occurrence of any Default or Event of Default;

            (b) any litigation, investigation or proceeding which may exist at
any time between the Borrower or any of its Subsidiaries and any Governmental
Authority, which in either case, if not cured or if adversely determined, as the
case may be, could have a Material Adverse Effect;

            (c) any litigation or proceeding (including, without limitation, in
connection with or relating to any Intellectual Property) affecting the Borrower
or any of its Subsidiaries;

            (d) the following events, as soon as possible and in any event
within 15 days after the Borrower knows or has reason to know thereof (i) the
occurrence or expected occurrence of any Reportable Event with respect to any
Plan, a failure to make any required contribution to a Plan, the creation of any
Lien in favor of the PBGC or a Plan or any withdrawal from, or the termination,
reorganization or insolvency of, any Multi-employer Plan or (ii) the institution
of proceedings or the taking of any other action by the PBGC or the Borrower or
any Commonly Controlled Entity or any Multi-employer Plan with respect to the
withdrawal from, or the terminating, reorganization or insolvency of, any Plan;
and

            (e) any material adverse change in the business, assets, property,
condition (financial or otherwise) or prospects of the Borrower and its
Subsidiaries taken as a whole.

      Each notice pursuant to this subsection shall be accompanied by a
statement of the Borrower setting forth details of the occurrence referred to
therein and stating what action the Borrower proposes to take with respect
thereto.

                                       20
<PAGE>

      SECTION 5.6. Environmental Laws. Comply with all applicable Environmental
Laws and obtain and comply with and maintain any and all licenses, approvals,
notifications, registrations or permits required by applicable Environmental
Laws except to the extent that failure to do so could not have a Material
Adverse Effect; and conduct and complete all investigations, studies, sampling
and testing, and all remedial, removal and other actions required under
Environmental Laws and promptly comply with all lawful orders and directives of
all Governmental Authorities regarding Environmental Laws.

      SECTION 5.7. Lender's Fees. Borrower shall pay to Lender, on demand, any
and all fees, costs or expenses that are the obligation of the Borrower to pay
the Lender hereunder.

      SECTION 5.8. Further Assurances. Promptly upon request by the Lender,
execute, deliver, acknowledge, file, re-file, register and re-register any and
all such further acts, security agreements, assignments, estoppel certificates,
financing statements and continuations thereof, termination statements, notices
of assignment, transfers, certificates, assurances, Federal Reserve Forms U-1 or
G-3 or similar forms and other instruments as the Lender may reasonably require
from time to time in order (a) to carry out more effectively the purposes of
this Agreement or any other Loan Document, (b) to subject to the Liens created
by any of the Loan Documents any of the properties, rights or interests
described in or intended to be covered by any Loan Document, (c) to establish
and maintain the validity, effectiveness, perfection and priority of any Loan
Document or any Liens intended to be created thereby, or (d) to better assure,
convey, grant, assign, transfer, preserve, protect and confirm to the Lender the
rights granted or now or hereafter intended to be granted to the Lender under
any Loan Document or under any other instrument executed in connection
therewith.

                         ARTICLE VI - NEGATIVE COVENANTS

      The Borrower hereby agrees that, so long as any amount is owing to the
Lender hereunder or under any other Loan Document, the Borrower shall not, and
shall not permit any of its Subsidiaries to, directly or indirectly:

      SECTION 6.1. Limitation on Indebtedness. Create, incur, assume or suffer
to exist any Indebtedness, except Indebtedness of the Borrower under this
Agreement and/or indebtedness incurred in the ordinary course of Borrower's
business operations.

      SECTION 6.2. Limitation on Liens. Create, incur, assume or suffer to exist
any Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, except for:

            (a) Liens for taxes not yet due or which are being contested in good
faith by appropriate proceedings, provided that adequate reserves with respect
thereto are maintained on the books of the Borrower or its Subsidiaries, as the
case may be, in conformity with GAAP;

            (b) carriers', warehousemen's, mechanics', materialmen's,
repairmen's or other like Liens arising in the ordinary course of business,
which are not overdue for a period of

                                       21
<PAGE>

more than 20 days or which are being contested in good faith by appropriate
proceedings with adequate reserves therefor;

            (c) pledges or deposits in connection with workers' compensation,
unemployment insurance and other social security legislation and deposits
securing liability to insurance carriers under insurance or self-insurance
arrangements;

            (d) deposits to secure the performance of bids, trade contracts
(other than for borrowed money), leases, statutory obligations, surety and
appeal bonds, performance bonds and other obligations of a like nature incurred
in the ordinary course of business; and

            (e) Liens created under any Loan Document.

      SECTION 6.3. Limitation on Guarantee Obligations. Create, incur, assume or
suffer to exist any Guarantee Obligation other than any Guarantee Obligations
under any of the Loan Documents.

      SECTION 6.4. Limitation on Fundamental Changes. Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), form any Subsidiary or convey, sell,
lease, assign, transfer or otherwise dispose of, all or substantially all of its
property, business or assets, or make any material change in its present method
of conducting business, including any Change of Control.

      SECTION 6.5. Limitation on Sale of Assets. Borrower shall not and shall
not permit any Subsidiary of Borrower to sell, lease, assign, transfer or
otherwise dispose of any of its property, business or assets (including, without
limitation, receivables and leasehold interests), whether now owned or hereafter
acquired, except the sale or other disposition of obsolete or worn out property
in the ordinary course of business or except if the Net Proceeds of each such
transaction are applied to the prepayment of the Loan as provided in Section
2.4(c).

      SECTION 6.6. Limitation on Restricted Payments. Make any Restricted
Payments except as otherwise approved by the Lender in writing.

      SECTION 6.7. Limitation on Investments, Loans and Advances. Make any
advance, loan, extension of credit or capital contribution to, or purchase any
stock, bonds, notes, debentures or other securities of or any assets
constituting a business unit of, or make any other investment in, any Person,
except:

            (a) investments in accounts or notes receivable or other claims
arising from the sale or lease of goods or services in the ordinary course of
business; or

            (b) investments in Cash Equivalents.

      SECTION 6.8. Limitation on Cancellation of Indebtedness. Borrower shall
not and shall not permit any Subsidiary of Borrower to cancel any claim or debt
owing to it, except for reasonable consideration and in the ordinary course of
business.

                                       22
<PAGE>

      SECTION 6.9. Limitation on Transactions with Affiliates. Enter into any
transaction, including, without limitation, any purchase, sale, lease or
exchange of property or the rendering of any service, with any Affiliate unless
such transaction is otherwise permitted under this Agreement.

      SECTION 6.10. Limitation on Sales and Leasebacks. Enter into any
arrangement with any Person providing for the leasing by the Borrower of real or
personal property which has been or is to be sold or transferred by the Borrower
to such Person or to any other Person to whom funds have been or are to be
advanced by such Person on the security of such property or rental obligations
of the Borrower.

      SECTION 6.11. [Intentionally omitted].

      SECTION 6.12. Limitation on Changes to Capital Structure Borrower shall
not make or permit any Subsidiary of Borrower to make any changes in its capital
structure (including, without limitation, in the terms of its outstanding
Capital Stock), amend its articles of incorporation or by-laws, or make or
permit any Subsidiary of Borrower to make any changes in any of its business
objectives, purposes, or operations which might in any way adversely affect the
repayment of or Borrower's ability to repay the Obligations or have a Material
Adverse Effect.

      SECTION 6.13. Limitation on Events of Default. Borrower shall not and
shall not permit any Subsidiary of Borrower to take or omit to take any action,
which act or omission would constitute (i) a default or an event of default
pursuant to, or noncompliance with any of, the terms of any of the Loan
Documents or (ii) a material default or an event of default pursuant to, or
noncompliance with any other contract, lease, mortgage, deed of trust or
instrument to which it is a party or by which it or any of its property is
bound, or any document creating a Lien, unless any such default, event of
default or non-compliance, individually or in the aggregate, would not have a
Material Adverse Effect.

      SECTION 6.14. Limitation on Lines of Business. Enter into any business,
either directly or through any Subsidiary, except for those businesses in which
the Borrower is engaged on the date of this Agreement.

      SECTION 6.15. Limitation on Use of Proceeds. Use the proceeds of the Loan
for any purpose other than (i) to pay fees, costs and expenses or otherwise make
any payments owing to the Lender hereunder, (ii) to make payments to employees
in the ordinary course of the Borrower's Business consistent with the Borrower's
payroll practices and (iii) to make payments with respect to amounts owed
pursuant to trade payables as of the date of the respective advance under the
Loan.

                         ARTICLE VII - EVENTS OF DEFAULT

      SECTION 7.1. Events of Default. The occurrence of any one or more of the
following events (regardless of the reason therefor) shall constitute an "Event
of Default" hereunder:

                                       23
<PAGE>

            (a) the Borrower shall fail to pay any principal of the Loan when
due in accordance with the terms hereof, or the Borrower shall fall to pay any
interest on the Loan, any fees or other amount payable hereunder, within five
days after any such interest or other amount becomes due in accordance with the
terms hereof;

            (b) any representation or warranty made or deemed made by the
Borrower or any Subsidiary herein or in any other Loan Document or which is
contained in any certificate, document or financial or other statement furnished
by it at any time under or in connection with this Agreement or any such other
Loan Document shall prove to have been incorrect in any material respect on or
as of the date made or deemed made;

            (c) the Borrower or any other Loan Party shall default in the
observance or performance of any other covenant or provision contained in this
Agreement or any other Loan Document;

            (d) a default shall occur under any other agreement, document or
instrument to which any Loan Party is a party or by which any Loan Party or any
Loan Party's property is bound, and such default (i) involves the failure to
make any payment (whether of principal, interest or otherwise) due (whether by
scheduled maturity, required prepayment, acceleration, demand or otherwise) in
respect of any Indebtedness of any Loan Party in an amount exceeding $50,000
individually or $750,000 in the aggregate, or (ii) causes (or permits any holder
of such Indebtedness or a trustee to cause) such Indebtedness or a portion
thereof in an aggregate amount exceeding $50,000, to become due prior to its
stated maturity or prior to its regularly scheduled dates of payment;

            (e) (i) any Person shall engage in any "prohibited transaction" (as
defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan,
(ii) any "accumulated funding deficiency" (as defined in Section 302 of ERISA),
whether or not waived, shall exist with respect to any Plan or any Lien in favor
of the PBGC or a Plan shall arise on the assets of the Borrower or any Commonly
Controlled Entity, (iii) a Reportable Event shall occur with respect to, or
proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Single Employer Plan, which
Reportable Event or commencement of proceedings or appointment of a trustee is,
in the opinion of the Lender, likely to result in the termination of such Plan
for purposes of Title IV of ERISA, (iv) any Single Employer Plan shall terminate
for purposes of Title IV of ERISA, (v) the Borrower or any Commonly Controlled
Entity shall, or in the opinion of the Lender is likely to, incur any liability
in connection with a withdrawal from, or the insolvency or reorganization of, a
Multi-employer Plan or (vi) any other event or condition shall occur or exist
with respect to a Plan; and in each case in clauses (i) through (vi) above, such
event or condition, together with all other such events or conditions, if any,
could have a Material Adverse Effect;

            (f) one or more judgments or decrees shall be entered against the
Borrower or any of its Affiliates involving in the aggregate a liability (not
paid or fully covered by insurance) of $100,000 or more, and all such judgments
or decrees shall not have been vacated, discharged, stayed or bonded pending
appeal within 30 days from the entry thereof;

                                       24
<PAGE>

            (g) the Borrower shall admit in writing its inability to, or be
generally unable to, pay its debts as such debts become due;

            (h) the Borrower or any of its Affiliates shall (i) apply for or
consent to the appointment of, or the taking of possession by, a receiver,
custodian, trustee, examiner, liquidator or the like of itself or of all or any
substantial part of its Property (whether now owned or hereafter acquired), (ii)
make a general assignment for the benefit of its creditors, (iii) commence a
voluntary case under the United States Bankruptcy Code (as now or hereafter in
effect, the "Bankruptcy Code"), (iv) institute any proceeding or file a petition
seeking to take advantage of any other law relating to bankruptcy, insolvency,
reorganization, liquidation, dissolution, winding-up or composition or
readjustment of debts, (v) fail to controvert in a timely and appropriate
manner, or acquiesce in writing to, any petition filed against it in an
involuntary case under the Bankruptcy Code, or (vi) take any corporate,
partnership or similar such action for the purpose of authorizing any of the
foregoing;

            (i) a proceeding or case shall be commenced, without the
application, approval or consent of the Borrower or any Affiliate of the
Borrower in any court of competent jurisdiction, seeking (i) the Borrower or
such Affiliate's reorganization, liquidation, dissolution, arrangement or
winding-up, or the composition or readjustment of its debts, (ii) the
appointment of a receiver, custodian, trustee, examiner, liquidator or the like
of the Borrower or any Affiliate of the Borrower or of all or any substantial
part of its Property (whether now owned or hereafter acquired), or (iii) similar
relief in respect of the Borrower or any Affiliate of the Borrower under any law
relating to bankruptcy, insolvency, reorganization, winding-up or composition or
adjustment of debts, and such proceeding or case shall continue undismissed, or
an order, judgment or decree approving or ordering any of the foregoing shall be
entered and continue unstayed and in effect, for a period of 45 or more days; or
an order for relief against the Borrower or any Affiliate of the Borrower shall
be entered in an involuntary case under the Bankruptcy Code;

            (j) the Loan Documents shall, for any reason, cease to create a
valid Lien on any of the Collateral purported to be covered by such Lien;

            (k) any material provision of any Loan Document shall, for any
reason, cease to be valid and binding on the Borrower or any Subsidiary or the
Borrower or any Subsidiary shall so state in writing;

            (l) any event that has a Material Adverse Effect shall occur; and

            (m) the Lender receives any indication or evidence that the Borrower
may have directly or indirectly been engaged in any type of activity that the
Lender, in its reasonable discretion, determines might result in the forfeiture
of any material property of the Borrower to any Governmental Authority.

      SECTION 7.2. Remedies. If any Event of Default shall have occurred and be
continuing, Lender may, without notice, declare all Obligations to be forthwith
due and payable,

                                       25
<PAGE>

whereupon all Obligations shall become and be due and payable, without
presentment, demand, protest or further notice of any kind, all of which are
expressly waived by the Borrower; provided, however, that upon the occurrence of
an Event of Default specified in Sections 7.1(g), (h) or (i) hereof, the
Obligations shall immediately become due and payable without declaration, notice
or demand by the Lender.

      SECTION 7.3. Rights Not Exclusive. The rights provided for in this
Agreement and the other Loan Documents are cumulative and are not exclusive of
any other rights, powers or privileges or remedies provided by law or in equity,
or under any other instrument, document or agreement.

                          ARTICLE VIII - MISCELLANEOUS

      SECTION 8.1. Complete Agreement; Modification of Agreement. The Loan
Documents constitute the complete agreement between the parties with respect to
the subject matter hereof and, except as the Lender may be permitted by the UCC,
may not be modified, altered or amended except by an agreement in writing signed
by Borrower and Lender. Borrower may not sell, assign or transfer any of the
Loan Documents or any portion thereof, including, without limitation, Borrower's
rights, title, interests, remedies, powers and duties hereunder or thereunder.
Borrower hereby consents to Lender's and each Assignee Lender's sale of
participations, assignment, transfer or other disposition, at any time or times,
of any of the Loan Documents or of any portion thereof or interest therein,
including, without limitation, Lender's and each Assignee Lender's rights,
title, interests, remedies, powers or duties thereunder, whether evidenced by a
writing or not. Borrower agrees that it will use its best efforts to assist and
cooperate with Lender in any manner reasonably requested by Lender to effect the
sale of participations in or assignments of any of the Loan Documents or of any
portion thereof or interest therein, including, without limitation, assistance
in the preparation of appropriate disclosure documents or placement memoranda.

            In the event Lender or any Assignee Lender assigns or otherwise
transfers all or any part of the Notes, Borrower shall, upon the request of
Lender or such Assignee Lender, issue new Notes to effectuate such assignment or
transfer.

            Lender may sell, assign, transfer or negotiate to one or more other
lenders, commercial banks, insurance companies, other financial institutions or
any other Person all or a portion of its rights and obligations under any Note
or other Loan Document held by such Lender and this Agreement; provided,
however, that the acceptance of such assignment by any assignees shall
constitute the agreement of such assignee to be bound by the terms of such
agreement applicable to Lender. From and after the effective date of such an
assignment, (x) the assignees thereunder shall, in addition to the rights and
obligations hereunder held by it immediately prior to such effective date, have
the rights and obligations hereunder that have been assigned to it pursuant to
such assignment and (y) the assignors thereunder shall relinquish its rights and
be released from its obligations under the Loan Document to the extent of the
rights and obligations that are assigned (and, in the case of an assignment and
acceptance covering all or the remaining

                                       26
<PAGE>

portion of an assigning Lender's rights and obligations under this Agreement,
such Lender shall cease to be a party hereto).

      No waiver of any provision of this Agreement or the Notes or any other
Loan Document, nor consent to any departure by Borrower therefrom, shall in any
event be effective unless the same shall be in writing and signed by the Lender,
and then such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given.

      SECTION 8.2. Notices. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
facsimile transmission) and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made (a) in the case of delivery by hand,
when delivered, (b) in the case of delivery by mail, three days after being
deposited in the U.S. mail, postage prepaid, or (c) in the case of delivery by
facsimile transmission, when sent and receipt has been confirmed, addressed as
follows, or to such other address as may be hereafter notified by the respective
parties hereto:

           The Borrower:

           CyNet, Inc.
           12777 Jones Road, Suite 400
           Houston, Texas 77070
           Attention:  Samuel C. Beale,
                       Vice President, General Counsel and Secretary
           Fax: (281) 894-7952

           With a copy to:

           Chamberlain Hrdlicka White Williams & Martin
           1200 Smith Street, Suite 1400
           Houston, Texas 77002
           Attn: James J. Spring III
           Fax: (713) 658-2553

           The Lender:

           Gerald McIntosh
           900 Rockmead Drive
           Suite 132
           Kingwood, Texas  77339
           Fax: (281) 358-7940

           With a copy to:

           Brewer & Pritchard
           [address...]
           Houston, Texas [zip code]

                                       27
<PAGE>

           Attention:  Thomas Pritchard
           Fax: (713) 209-2911

provided that any notice, request or demand to or upon the Lender pursuant to
Section 2.1(b) or 2.3 shall not be effective until actually received by the
Lender.

      SECTION 8.3. No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of the Lender, any right, remedy, power or
privilege hereunder or under the other Loan Documents shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges provided herein and in the other Loan Documents are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

      SECTION 8.4. Survival. All representations and warranties made hereunder,
in the other Loan Documents and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the execution
and delivery of this Agreement and the making of the Loan hereunder. Except as
otherwise expressly provided for in the Loan Documents, no termination or
cancellation (regardless of cause or procedure) of any financing arrangement
under this Agreement shall in any way affect or impair the powers, obligations,
duties, rights and liabilities of Borrower or the rights of Lender relating to
any transaction or event occurring prior to such termination. Except as
otherwise expressly provided herein or in any other Loan Document, all
undertakings, agreements, covenants, warranties and representations contained in
the Loan Documents shall survive such termination or cancellation and shall
continue in full force and effect until such time as all of the Obligations have
been paid in full in accordance with the terms of the agreements creating such
Obligations, at which time the same shall terminate.

      SECTION 8.5. Payment of Expenses and Taxes; Indemnification.

            (a) The Borrower agrees (i) to pay or reimburse the Lender for all
of its reasonable costs and expenses incurred in connection with the
development, preparation and execution of, and any amendment, supplement or
modification to, this Agreement and the other Loan Documents and any other
documents prepared in connection herewith or therewith, and the consummation and
administration of the transactions contemplated hereby and thereby, including,
without limitation due diligence expenses, consultant's fees and expenses,
travel expenses and the fees and disbursements of counsel, (ii) to pay or
reimburse the Lender for all its costs and expenses incurred in connection with
the enforcement, monitoring or preservation of any rights under this Agreement,
the other Loan Documents and any such other documents, including, without
limitation, the fees and disbursements of counsel to the Lender, (iii) to pay,
indemnify, and hold the Lender harmless from, any and all recording and filing
fees and any and all liabilities with respect to, or resulting from any delay in
paying, stamp, excise and other taxes, if any, which may be payable or
determined to be payable in connection with the execution and delivery of, or
consummation or administration of any of the transactions contemplated by, or
any amendment, supplement or modification of, or any waiver or consent under or
in respect of,

                                       28
<PAGE>

this Agreement, the other Loan Documents and any such other documents and (iv)
to pay, indemnify, and hold the Lender and its Affiliates and each of the
Lender's and its Affiliates' respective officers, directors, employees, agents
and representatives (including all professionals) (each an "Indemnified Party")
harmless from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement, the other Loan
Documents or the use of the proceeds of the Loan and any such other documents
(all the foregoing in this clause (iv) collectively, the "Indemnified
Liabilities"), provided, however, that the Borrower shall have no obligation
hereunder to the Lender with respect to Indemnified Liabilities arising from the
gross negligence or willful misconduct of the Lender. Notwithstanding anything
herein to the contrary, the agreements in this Section 8.5 shall survive
repayment of the Loan and all other amounts payable hereunder and the
termination of this Agreement.

            (b) Promptly after receipt by an Indemnified Party under this
Section 8.5 of notice of any claim or the commencement of any action, the
Indemnified Party shall, if a claim in respect thereof is to be made against the
Borrower, notify the Borrower in writing of the claim or the commencement of
that action; provided, however, that the failure to notify the Borrower shall
not relieve it from any liability which it may have under this Section 8.5
except to the extent it has been materially prejudiced by such failure and,
provided further, that the failure to notify the Borrower shall not relieve it
from any liability which it may have to an Indemnified Party otherwise than
under this Section 8.5. If any such claim or action shall be brought against an
Indemnified Party, and it shall notify the Borrower thereof, the Borrower shall
be entitled to participate therein and, to the extent that it wishes, to assume
the defense thereof with counsel reasonably satisfactory to the Indemnified
Party. After notice from the Borrower to the Indemnified Party of its election
to assume the defense of such claim or action, the Borrower shall not be liable
to the Indemnified Party under this Section 8.5 for any legal or other expenses
subsequently incurred by the Indemnified Party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, the
Borrower shall have the right to employ separate counsel in any such action and
to participate in the defense thereof but the fees and expenses of such counsel
shall be at the expense of the Indemnified Party unless (i) the employment of
such counsel has been specifically authorized by the Borrower in writing, or
(ii) such Indemnified Party shall have been advised by such counsel that there
may be one or more legal defenses available to it which are different from or
additional to those available to the Borrower and in the reasonable judgment of
such counsel it is advisable for such Indemnified Party to employ separate
counsel or (iii) the Borrower has failed to assume the defense of such action
and employ counsel reasonably satisfactory to the Indemnified Party, in which
case, if such Indemnified Party notifies the Borrower in writing that it elects
to employ separate counsel at the expense of the Borrower, the Borrower shall
not, in connection with any one such action or separate but substantially
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys (in addition to one local
counsel) at any time for all such Indemnified Parties, which firm shall be
designated in writing by the Lender. The Borrower shall not (i) without the
prior written consent of the Indemnified Parties (which consent shall not be

                                       29
<PAGE>

unreasonably withheld), settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the Indemnified Parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each Indemnified Party from all liability
arising out of such claim, action, suit or proceeding or (ii) be liable for any
settlement of any such action effected without its written consent, but if
settled with the consent of the Borrower or if there be a final judgment of the
plaintiff in any such action, the Borrower agrees to indemnify and hold harmless
any Indemnified Party from and against any loss or liability by reason of such
settlement or judgment.

      SECTION 8.6. Adjustments; Set-off. In addition to any rights and remedies
of the Lender provided by law, the Lender shall have the right, without prior
notice to the Borrower, any such notice being expressly waived by the Borrower
to the extent permitted by applicable law, upon any amount becoming due and
payable by the Borrower hereunder (whether at the stated maturity, by
acceleration or otherwise) to set-off and appropriate and apply against such
amount any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by the Lender to or for the
credit or the account of the Borrower. The Lender agrees promptly to notify the
Borrower after any such set-off and application made by the Lender, provided
that the failure to give such notice shall not affect the validity of such
set-off and application.

      SECTION 8.7. Counterparts. This Agreement and the other Loan Documents may
be executed in any number of separate counterparts (including by facsimile
transmission), each of which shall, collectively and separately, be deemed to
constitute one and the same instrument.

      SECTION 8.8. Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

      SECTION 8.9. GOVERNING LAW. THIS AGREEMENT, THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER AND ALL CLAIMS THAT MAY ARISE HEREUNDER, WHETHER SOUNDING
IN CONTRACT OR TORT, SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS, EXCLUDING ITS CONFLICT OF LAWS
RULES (TO THE EXTENT SUCH RULES WOULD APPLY THE LAW OF ANOTHER JURISDICTION).

      SECTION 8.10. Submission To Jurisdiction; Waivers. The Borrower hereby
irrevocably and unconditionally:

                                       30
<PAGE>

            (a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the non-exclusive general jurisdiction of the Courts of the State of
Texas, the courts of the United States of America for the Southern District of
Texas, and appellate courts from any thereof,

            (b) consents that any such action or proceeding may be brought in
such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

            (c) agrees that service of process in any such action or proceeding
may be effected by mailing a copy thereof by registered or certified mail (or
any substantially similar form of mail), postage prepaid, to such Borrower at
its address set forth in Section 8.2 or at such other address of which the
Lender shall have been notified pursuant thereto;

            (d) agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit the right
to sue in any other jurisdiction; and

            (e) waives, to the maximum extent not prohibited by law, any right
it may have to claim or recover in any legal action or proceeding referred to in
this subsection any special, exemplary, punitive or consequential damages.

      SECTION 8.11. Acknowledgments. The Borrower hereby acknowledges that:

            (a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents;

            (b) the Lender does not have any fiduciary relationship with or duty
to the Borrower arising out of or in connection with this Agreement or any of
the other Loan Documents, and the relationship between the Lender and the
Borrower in connection herewith or therewith is solely that of debtor and
creditor, and

            (c) no joint venture is created hereby or by the other Loan
Documents or otherwise exists by virtue of the transactions contemplated hereby
among the Borrower and the Lender.

      SECTION 8.12. WAIVERS OF JURY TRIAL. THE BORROWER AND THE LENDER HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN. THE BORROWER AND THE LENDER AGREE THAT ANY SUCH CLAIM OR
CAUSE OF ACTION SHALL BE TRIED BY THE COURT WITHOUT A JURY. THIS WAIVER SHALL
APPLY TO EACH FUTURE AMENDMENT, RENEWAL, SUPPLEMENT OR MODIFICATION OF ANY LOAN
DOCUMENT AND TO EACH FUTURE LOAN DOCUMENT.

                                       31
<PAGE>

      SECTION 8.13. Conflict of Terms. Except as otherwise provided in this
Agreement or any of the other Loan Documents by specific reference to the
applicable provisions of this Agreement, if any provision contained in this
Agreement is in conflict with, or inconsistent with, any provision in any of the
other Loan Documents, the provision contained in this Agreement shall govern and
control.

      SECTION 8.14. Section Titles. The Section titles and Table of Contents
contained in this Agreement are and shall be without substantive meaning or
content of any kind whatsoever and are not part of the agreement between the
parties hereto.

      SECTION 8.15. Parties. This Agreement and the other Loan Documents shall
be binding upon, and inure to the benefit of, the successors of Borrower and the
Lender and any Assignee Lender and the assigns, transferees and endorsees of
Lender and any Assignee Lenders.

      SECTION 8.16. Authorized Signature. Until the Lender is notified by
Borrower to the contrary, the signature upon any document or instrument
delivered hereunder or pursuant hereto or under or pursuant to any of the other
Loan Documents of an officer of Borrower listed in Schedule 8.16 hereto shall
bind the Borrower and be deemed to be the act of Borrower affixed pursuant to
and accordance with resolutions duly adopted by the Borrower's Board of
Directors.

      SECTION 8.17. Usury Savings Clause.

            (a) It is the intention of the parties hereto to comply with
applicable usury laws (now or hereafter enacted); accordingly, notwithstanding
any provision to the contrary in this Agreement, the Notes, any of the other
Loan Documents or any other document related hereto or thereto, in no event
shall this Agreement or any such other document require the payment or permit
the collection of interest in excess of the maximum amount permitted by such
laws. If from any circumstances whatsoever, fulfillment of any provision of this
Agreement, the Notes, any of the other Loan Documents or of any other document
pertaining hereto or thereto, shall involve transcending the limit of validity
prescribed by applicable law for the collection or charging of interest, then,
ipso facto, the obligation to be fulfilled shall be reduced to the limit of such
validity, and if from any such circumstances the Lender shall ever receive
anything of value as interest or deemed interest by applicable law under this
Agreement, the Notes, any of the other Loan Documents or any other document
pertaining hereto or otherwise an amount that would exceed the highest lawful
rate, such amount that would be excessive interest shall be applied to the
reduction of the principal amount owing under the Notes or on account of any
other Obligations of the Borrower, and not to the payment of interest, or if
such excessive interest exceeds the unpaid balance of principal of such
Obligations, such excess shall be refunded to the Borrower. In determining
whether or not the interest paid or payable with respect to any Obligations of
the Borrower to the Lender, under any specified contingency, exceeds the Highest
Lawful Rate, the Borrower and the Lender shall, to the maximum extent permitted
by applicable law, (i) characterize any non-principal payment as an expense, fee
or premium rather than as interest, (ii) exclude voluntary prepayments and the
effects thereof, (iii) amortize, prorate, allocate and spread the total amount
of interest throughout the full term of such Obligation so that interest thereon
does not exceed the maximum amount permitted by applicable law, and/or

                                       32
<PAGE>

(iv) allocate interest between portions of such Obligation, to the end that no
such portion shall bear interest at a rate greater than that permitted by
applicable law.

            (b) To the extent that Article 5069-1.04 of the Texas Revised Civil
Statutes is relevant to the Lender for the purpose of determining the Highest
Lawful Rate, the Lender hereby elects to determine the applicable rate ceiling
under such Article by the indicated (weekly) rate ceiling from time to time in
effect. Nothing set forth in this Section 8.17 is intended to or shall limit the
effect or operation of Section 8.9.

            (c) For purposes of this Section 8.17, "Highest Lawful Rate" shall
mean the maximum rate of nonusurious interest that may be contracted for, taken,
reserved or received on the Loan under laws applicable to the Lender.

                                       33
<PAGE>

                     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and delivered by their proper and duly authorized
officers as of the day and year first above written.

                         CYNET, INC., as the Borrower

                           By:  /s/ Vincent W. Beale, Sr.
                                ------------------------------------------------
                                Name:  Vincent W. Beale, Sr.
                                Title: Chairman & C.E.O.

                           G&B McIntosh Family Limited Partnership, as Lender

                           By:  /s/ Gerald M. McIntosh
                                ------------------------------------------------
                                Name:  Gerald M. McIntosh
                                Title: General Partner

                          McIntosh Revocable Trust, as Lender

                           By:  /s/ Gerald M. McIntosh
                                ------------------------------------------------
                                Name:  Gerald M. McIntosh
                                Title: Trustee

                         CRTLP, Inc., as Lender

                           By:  /s/ Gerald M. McIntosh
                                ------------------------------------------------
                                Name:  Gerald M. McIntosh
                                Title: President

<PAGE>

                           SCHEDULE 3.4   Subsidiaries

1.  Worldwide Marketing Services, Inc.

2.  CYNET Interactive, LLC

<PAGE>

                       SCHEDULE 3.9   Material Litigation

1.  The Borrower and its subsidiary, CYNET Interactive, have been named as
    defendants in a suit filed November 19, 1999 in the District Court of
    Harris County, Texas, 61 Judicial District (Cause No. 1999-57579) by
    Bank & Estate Liquidators, Inc., a former customer of CYNET Interactive.
    On March 8, 2001, the parties entered into a settlement agreement
    settling all matters in the case, with the Borrower agreeing to pay the
    plaintiff $15,000 cash on March 27, 2001, deliver to the plaintiff certain
    software, and pay and additional $65,000 by May 27, 2001.

2.  The Borrower has been named as defendant in a suit filed June 26, 2000 in
    the United States District Court, Southern District of California (Cause
    No. 00CV 1282 W (NLS)) by Clearfax, Inc. The plaintiff alleges, among
    other things, that the Borrower infringed upon plaintiff's federal
    copyright by unauthorized use of plaintiff's software in certain its fax
    resolution software and is seeking to recover general and exemplary
    damages. The Borrower has retained counsel to defend the matter. Although
    the Borrower has not completed its discovery investigation of the claims
    asserted by the plaintiff in this matter, The Borrower does not believe
    that this suit will have a material adverse effect on Borrower.

3.  Borrower has been named as defendant in a suit filed December 13, 2000,in
    the Circuit Court for Montgomery County, Maryland (Civil No. 216130 Civil)
    in a case filed as a class action lawsuit for sending unsolicited fax
    materials concerning certain financial securities promotions. Borrower has
    not completed its discovery and investigations at this time; but based on
    the information it presently has, Borrower is of the opinion that the
    allegations against it in this case are without legal merit under federal
    and Maryland state laws. Borrower will be retaining outside counsel to
    vigorously defend Borrower.  The plaintiff is seeking to recover general
    damages.

4.  On December 21, 2000, AT&T filed a suit in a Federal District Court
    against Borrower in reference to past due Accounts Payable owed by
    Borrower(Civil Action No. H-00-4452; AT&T vs. CYNET, Inc.; in the United
    States District Court for the Southern District of Texas, Houston
    Division).  The complaint asks for $262,447.97, plus reasonable attorneys
    fees and cost of suit pursuant to a contract for telephone services. The
    companies are actively engaged in settlement discussions.  Borrower
    expects to settle the case through a negotiated installment.

5.  Borrower has been named as defendant in a suit filed December 28, 2000,
    where one of Borrower's fax broadcasting customers is a party.  The case
    is filed as a California class action lawsuit and has been filed in
    connection with the transmission of certain unsolicited facsimiles by one
    of Borrower's customers.  Borrower has not completed its discovery and
    investigations at this time; however, based on the information it presently
    has, Borrower is of the opinion that the allegations against Borrower in
    this case are without legal merit under federal and the State of
    California laws. The plaintiff is seeking to recover general and exemplary
    damages and injunctive relief. Borrower has retained outside counsel to
    vigorously defend Borrower.

<PAGE>

6.  On April 10, 2001, Thomaskelly Software Associates ("Thomaskelly") made a
    demand for arbitration to the American Arbitration Association.  The
    controversy arises out of a dispute regarding fees pursuant to a consulting
    agreement entered into between Thomaskelly and the Borrower.  Thomaskelly
    is seeking $909,800.00 in damages.  Borrower has not completed its
    discovery and investigations at this time; however, based on the
    information it presently has, Borrower does not expect this matter will
    have a material adverse effect on the Borrower.

<PAGE>

                     SCHEDULE 3.12   Intellectual Property

1.  The name "Hypercast", together with all common law copyrights, trademark
    or copyright registrations and applications therefor.

2.  The name "CYNET", together with all common law copyrights, trademark or
    copyright registrations and applications therefor.

3.  The name "Hyperline", together with all common law copyrights, trademark
    or copyright registrations and applications therefor.

4.  The Borrower filed a trademark application for the name "CYPAQ", which
    the Borrower subsequently agreed to assign to Compaq Computer Corporation
    ("Compaq") in exchange for, among other things, Compaq's grant to the
    Company of a royalty-free license to use the name "CYPAQ" as the brand
    name for the Company's bundled wireless solution on the Compaq iPAQ-TM-
    Pocket PC which includes a dual-slot sleeve interface.

5.  The Borrower regards certain of its computer software as proprietary and
    seeks to protect such software with common law copyrights, trade secret
    laws, non-disclosure agreements and other safeguards.

6.  The Borrower also licenses certain technology from third parties as
    necessary for the operation of its business.

<PAGE>

                 SCHEDULE 3.19   Capital Stock of Borrower

1.  100,000,000 shares of Class A Common Stock, no par value

2.  20,000,000 shares of Class B Common Stock, no par value

3.  10,000,000 shares of blank preferred stock

<PAGE>

                      SCHEDULE 3.22   Material Agreements

<PAGE>

                     SCHEDULE 8.16   Authorized Signature

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}]]