Document:

<PAGE>   1
                                                                  EXHIBIT 10.25

                                Promissory Note

Date: JANUARY 5, 2001                                        RENEWAL 391968/265

Amount: $700,000.00                               Maturity Date: APRIL 15, 2001

<TABLE>
<CAPTION>
Bank:                                                       Borrower:

<S>                                                         <C>
Bank of America, N.A.                                       Firstwave Technologies, Inc.
Banking Center:  Private Bank                               2859 Paces Ferry Road, Ste. 1000
600 Peachtree Street, NE, Suite 1100                        Atlanta, GA 30339
Atlanta, GA 30308

County:  Fulton                                             County:  Cobb
</TABLE>

FOR VALUE RECEIVED, the undersigned Borrower unconditionally (and jointly and
severally, if more than one) promises to pay to the order of Bank, its
successors and assigns, without setoff, at its offices indicated at the
beginning of this Note, or at such other place as may be designated by Bank,
the principal amount of SEVEN HUNDRED THOUSAND AND NO/100--- Dollars
($700,000.00), or so much thereof as may be advanced in immediately available
funds, together with interest computed daily on the outstanding principal
balance hereunder, at an annual interest rate, and in accordance with the
payment schedule, indicated below.

         [This Note contains some provisions preceded by boxes. If a box is
         marked, the provision applies to this transaction; if it is not
         marked, the provision does not apply to this transaction.]

1.       Rate.

         FIXED RATE. The Rate shall be fixed at 7.94 percent per annum.

Notwithstanding any provision of this Note, Bank does not intend to charge and
Borrower shall not be required to pay any amount of interest or other charges
in excess of the maximum permitted by the applicable law of the State of
Georgia; if any higher rate ceiling is lawful, then that higher rate ceiling
shall apply. Any payment in excess of such maximum shall be refunded to
Borrower or credited against principal, at the option of Bank.

2.       ACCRUAL METHOD. Unless otherwise indicated, interest at the Rate set
forth above will be calculated by the actual/360 day method (a daily amount of
interest is computed for a hypothetical year of 360 days; that amount is
multiplied by the actual number of days for which any principal is outstanding
hereunder). If interest is not to be computed using this method, the method
shall be: N/A.

3.       RATE CHANGE DATE. Any Rate based on a fluctuating index or base rate
will change, unless otherwise provided, each time and as of the date that the
index or base rate changes. If the Rate is to change on any other date or at
any other interval, the change shall be: N/A.
In the event any index is discontinued, Bank shall substitute an index
determined by Bank to be comparable, in its sole discretion.

4.       PAYMENT SCHEDULE. All payments received hereunder shall be applied
first to the payment of any expense or charges payable hereunder or under any
other loan documents executed in connection with this Note, then to interest
due and payable, with the balance applied to principal, or in such other order
as Bank shall determine at its option.

         SINGLE PRINCIPAL PAYMENT. Principal and all accrued interest due April
15, 2001.

5.       REVOLVING FEATURE

         [ ]       Borrower may borrow, repay and reborrow hereunder at any
         time, up to a maximum aggregate amount outstanding at any one time
         equal to the principal amount of this Note, provided, that Borrower is
         not in default under any provision of this Note, any other documents
         executed in connection with this Note, or any other note or other loan
         documents now or hereafter executed in connection with any other
         obligation of Borrower to Bank, and provided that the borrowings
         hereunder do not exceed any borrowing base or other limitation on
         borrowings by Borrower. Bank shall incur no liability for its refusal
         to advance funds based upon its determination that any conditions of
         such further advances have not been met. Bank records of the amounts
         borrowed from time to time shall be conclusive proof thereof.

         [ ]       UNCOMMITTED FACILITY. Borrower acknowledges and agrees that,
         notwithstanding any provisions of this Note or any other documents
         executed in connection with this Note, Bank has no obligation to make
         any advance, and that all advances are at the sole discretion of Bank.

         [ ]       OUT-OF-DEBT PERIOD. For a period of at least consecutive
         days during [ ] each fiscal year, [ ] any consecutive 12-month period,
         Borrower shall fully pay down the balance of this Note, so that no
         amount of principal or interest and no other obligation under this
         Note remains outstanding.

<PAGE>   2

6.       AUTOMATIC PAYMENT.

[ ]       Borrower has elected to authorize Bank to effect payment of sums due
under this Note by means of debiting Borrower's account number    . This
authorization shall not affect the obligation of Borrower to pay such sums when
due, without notice, if there are insufficient funds in such account to make
such payment in full on the due date thereof, or if Bank fails to debit the
account.

7.       LOAN FEE.

[ ]       Upon the maturity of this Note, whether by demand, acceleration, or
otherwise, an administrative fee in the amount of $ shall be due and payable.

8.       WAIVERS, CONSENTS AND COVENANTS. Borrower, any indorser or guarantor
hereof, or any other party executing a Loan Document that supports and/or
secures payment of this Note, (individually an "Obligor" and collectively
"Obligors") and each of them jointly and severally: (a) waive presentment,
demand, protest, notice of demand, notice of intent to accelerate, notice of
acceleration of maturity, notice of protest, notice of nonpayment, notice of
dishonor, and any other notice required to be given under the law to any
Obligor in connection with the delivery, acceptance, performance, default or
enforcement of this Note, any endorsement or guaranty of this Note, or any
other documents executed in connection with this Note including but not limited
to: mortgage, deed of trust, security instrument or pledge agreement, or any
other note or other loan documents now or hereafter executed in connection with
any obligation of Borrower to Bank (the "Loan Documents"); (b) consent to all
delays, extensions, renewals or other modifications of this Note or the Loan
Documents, or waivers of any term hereof or of the Loan Documents, or release
or discharge by Bank of any of Obligors, or release, substitution or exchange
of any security for the payment hereof, or the failure to act on the part of
Bank, or any indulgence shown by Bank (without notice to or further assent from
any of Obligors), and agree that no such action, failure to act or failure to
exercise any right or remedy by Bank shall in any way affect or impair the
obligations of any Obligors or be construed as a waiver by Bank of, or
otherwise affect, any of Bank's rights under this Note, under any endorsement
or guaranty of this Note or under any of the Loan Documents; and (c) agree to
pay, on demand, all costs and expenses of collection or defense of this Note or
of any endorsement or guaranty hereof and/or the enforcement or defense of
Bank's rights with respect to, or the administration, supervision,
preservation, or protection of, or realization upon, any property securing
payment hereof, including, without limitation, reasonable attorney's fees,
including fees related to any suit, mediation or arbitration proceeding, out of
court payment agreement, trial, appeal, bankruptcy proceedings or other
proceeding, in such amount as may be determined reasonable by any arbitrator or
court, whichever is applicable.

9.       "INTEREST" LIMITED. As used in this Note and for the purposes of
Section 7-4-2 of the Official Code of Georgia Annotated, or any successor
thereto, the term "interest" does not include any fees (including, but not
limited to, the Loan Fee) or other charges imposed on Borrower in connection
with the indebtedness evidenced by this Note, other than the interest described
above.

10.      PREPAYMENTS. Prepayments may be made in whole or in part at any time
on any loan for which the Rate is based on the Prime Rate or any other
fluctuating Rate or index which may change daily. All prepayments of principal
shall be applied in the inverse order of maturity, or in such other order as
Bank shall determine in its sole discretion. No prepayment of any other loan
shall be permitted without the prior written consent of Bank. Notwithstanding
such prohibition, if there is a prepayment of any such loan, whether by consent
of Bank, or because of acceleration or otherwise, Borrower shall, within 15
days of any request by Bank, pay to Bank any loss or expense which Bank may
incur or sustain as a result of such prepayment. For the purposes of
calculating the amounts owed only, it shall be assumed that Bank actually
funded or committed to fund the loan through the purchase of an underlying
deposit in an amount and for a term comparable to the loan, and such
determination by Bank shall be conclusive, absent a manifest error in
computation.

11.      DELINQUENCY CHARGE. To the extent permitted by law, a delinquency
charge may be imposed in an amount not to exceed four percent (4%) of any
payment that is more than fifteen days late.

12.      EVENTS OF DEFAULT. The following are events of default hereunder: (a)
the failure to pay or perform any obligation, liability or indebtedness of any
Obligor to Bank, or to any affiliate or subsidiary of Bank of America
Corporation, whether under this Note or any Loan Documents, as and when due
(whether upon demand, at maturity or by acceleration); (b) the failure to pay
or perform any other obligation, liability or indebtedness of any Obligor to
any other party; (c) the death of any Obligor (if an individual); (d) the
resignation or withdrawal of any partner or a material owner/guarantor of
Borrower, as determined by Bank in its sole discretion; (e) the commencement of
a proceeding against any Obligor for dissolution or liquidation, the voluntary
or involuntary termination or dissolution of any Obligor or the merger or
consolidation of any Obligor with or into another entity; (f) the insolvency
of, the business failure of, the appointment of a custodian, trustee,
liquidator or receiver for or for any of the property of, the assignment for
the benefit of creditors by, or the filing of a petition under bankruptcy,
insolvency or debtor's relief law or the filing of a petition for any
adjustment of indebtedness, composition or extension by or against any Obligor;
(g) the determination by Bank that any representation or warranty made to Bank
by any Obligor in any Loan Documents or otherwise is or was, when it was made,
untrue or materially misleading; (h) the failure of any Obligor to timely
deliver such financial statements, including tax returns, other statements of
condition or other information, as Bank shall request from time to time; (i)
the entry of a judgment against any Obligor which Bank deems to be of a
material nature, in Bank's sole discretion; (j) the seizure or forfeiture of,
or the issuance of any writ of possession, garnishment or attachment, or any
turnover order for any property of any Obligor; (k) the determination by Bank
that it is insecure for any reason; (l) the determination by Bank that a
material adverse change has occurred in the financial condition of any Obligor;
or (m) the failure of Borrower's business to comply with any law or regulation
controlling its operation.

13.      REMEDIES UPON DEFAULT. Whenever there is a default under this Note (a)
the entire balance outstanding hereunder and all other obligations of any
Obligor to Bank (however acquired or evidenced) shall, at the option of Bank,
become immediately due and payable and any obligation of Bank to permit further
borrowing under this Note shall immediately cease and terminate, and/or (b) to
the extent permitted by law, the Rate of interest on the unpaid principal shall
be increased at Bank's discretion up to the maximum rate allowed by law, or if
none, 25% per annum (the "Default Rate"). The provisions herein for a Default
Rate shall not be deemed to extend the time for any payment hereunder or to
constitute a "grace period" giving Obligors a right to cure any default. At
Bank's option, any accrued and unpaid interest, fees or charges

<PAGE>   3

may, for purposes of computing and accruing interest on a daily basis after the
due date of the Note or any installment thereof, be deemed to be a part of the
principal balance, and interest shall accrue on a daily compounded basis after
such date at the Default Rate provided in this Note until the entire
outstanding balance of principal and interest is paid in full. Upon a default
under this Note, Bank is hereby authorized at any time, at its option and
without notice or demand, to set off and charge against any deposit accounts of
any Obligor (as well as any money, instruments, securities, documents, chattel
paper, credits, claims, demands, income and any other property, rights and
interests of any Obligor), which at any time shall come into the possession or
custody or under the control of Bank or any of its agents, affiliates or
correspondents, any and all obligations due hereunder. Additionally, Bank shall
have all rights and remedies available under each of the Loan Documents, as
well as all rights and remedies available at law or in equity.

14.      NON-WAIVER. The failure at any time of Bank to exercise any of its
options or any other rights hereunder shall not constitute a waiver thereof,
nor shall it be a bar to the exercise of any of its options or rights at a
later date. All rights and remedies of Bank shall be cumulative and may be
pursued singly, successively or together, at the option of Bank. The acceptance
by Bank of any partial payment shall not constitute a waiver of any default or
of any of Bank's rights under this Note. No waiver of any of its rights
hereunder, and no modification or amendment of this Note, shall be deemed to be
made by Bank unless the same shall be in writing, duly signed on behalf of
Bank; each such waiver shall apply only with respect to the specific instance
involved, and shall in no way impair the rights of Bank or the obligations of
Obligors to Bank in any other respect at any other time.

15.      APPLICABLE LAW, VENUE AND JURISDICTION. This Note and the rights and
obligations of Borrower and Bank shall be governed by and interpreted in
accordance with the law of the State of Georgia. In any litigation in
connection with or to enforce this Note or any endorsement or guaranty of this
Note or any Loan Documents, Obligors, and each of them, irrevocably consent to
and confer personal jurisdiction on the courts of the State of Georgia or the
United States located within the State of Georgia and expressly waive any
objections as to venue in any such courts. Nothing contained herein shall,
however, prevent Bank from bringing any action or exercising any rights within
any other state or jurisdiction or from obtaining personal jurisdiction by any
other means available under applicable law.

16.      PARTIAL INVALIDITY. The unenforceability or invalidity of any
provision of this Note shall not affect the enforceability or validity of any
other provision herein and the invalidity or unenforceability of any provision
of this Note or of the Loan Documents to any person or circumstance shall not
affect the enforceability or validity of such provision as it may apply to
other persons or circumstances.

17.      BINDING EFFECT. This Note shall be binding upon and inure to the
benefit of Borrower, Obligors and Bank and their respective successors,
assigns, heirs and personal representatives, provided, however, that no
obligations of Borrower or Obligors hereunder can be assigned without prior
written consent of Bank.

18.      CONTROLLING DOCUMENT. To the extent that this Note conflicts with or
is in any way incompatible with any other document related specifically to the
loan evidenced by this Note, this Note shall control over any other such
document, and if this Note does not address an issue, then each other such
document shall control to the extent that it deals most specifically with an
issue.

19.      ARBITRATION. ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE PARTIES
HERETO INCLUDING BUT NOT LIMITED TO THOSE ARISING OUT OF OR RELATING TO THIS
INSTRUMENT, AGREEMENT OR DOCUMENT OR ANY RELATED INSTRUMENTS, AGREEMENTS OR
DOCUMENTS, INCLUDING ANY CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT, SHALL
BE DETERMINED BY BINDING ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION
ACT (OR IF NOT APPLICABLE, THE APPLICABLE STATE LAW), THE RULES OF PRACTICE AND
PROCEDURE FOR THE ARBITRATION OF COMMERCIAL DISPUTES OF J.A.M.S./ENDISPUTE OR
ANY SUCCESSOR THEREOF ("J.A.M.S."), AND THE "SPECIAL RULES" SET FORTH BELOW. IN
THE EVENT OF ANY INCONSISTENCY, THE SPECIAL RULES SHALL CONTROL. JUDGMENT UPON
ANY ARBITRATION AWARD MAY BE ENTERED IN ANY COURT HAVING JURISDICTION. ANY
PARTY TO THIS INSTRUMENT, AGREEMENT OR DOCUMENT MAY BRING AN ACTION, INCLUDING
A SUMMARY OR EXPEDITED PROCEEDING, TO COMPEL ARBITRATION OF ANY CONTROVERSY OR
CLAIM TO WHICH THIS AGREEMENT APPLIES IN ANY COURT HAVING JURISDICTION OVER
SUCH ACTION.

         A.       SPECIAL RULES. THE ARBITRATION SHALL BE CONDUCTED IN THE
COUNTY OF ANY BORROWER'S DOMICILE AT THE TIME OF THE EXECUTION OF THIS
INSTRUMENT, AGREEMENT OR DOCUMENT AND ADMINISTERED BY J.A.M.S. WHO WILL APPOINT
AN ARBITRATOR; IF J.A.M.S. IS UNABLE OR LEGALLY PRECLUDED FROM ADMINISTERING
THE ARBITRATION, THEN THE AMERICAN ARBITRATION ASSOCIATION WILL SERVE. ALL
ARBITRATION HEARINGS WILL BE COMMENCED WITHIN 90 DAYS OF THE DEMAND FOR
ARBITRATION; FURTHER, THE ARBITRATOR SHALL ONLY, UPON A SHOWING OF CAUSE, BE
PERMITTED TO EXTEND THE COMMENCEMENT OF SUCH HEARING FOR UP TO AN ADDITIONAL 60
DAYS.

         B.       RESERVATION OF RIGHTS. NOTHING IN THIS ARBITRATION PROVISION
SHALL BE DEEMED TO (I) LIMIT THE APPLICABILITY OF ANY OTHERWISE APPLICABLE
STATUTES OF LIMITATION OR REPOSE AND ANY WAIVERS CONTAINED IN THIS INSTRUMENT,
AGREEMENT OR DOCUMENT; OR (II) BE A WAIVER BY BANK OF THE PROTECTION AFFORDED
TO IT BY 12 U.S.C. SEC. 91 OR ANY SUBSTANTIALLY EQUIVALENT STATE LAW; OR (III)
LIMIT THE RIGHT OF BANK HERETO (A) TO EXERCISE SELF HELP REMEDIES SUCH AS (BUT
NOT LIMITED TO) SETOFF, OR (B) TO FORECLOSE AGAINST ANY REAL OR PERSONAL
PROPERTY COLLATERAL, OR (C) TO OBTAIN FROM A COURT PROVISIONAL OR ANCILLARY
REMEDIES SUCH AS (BUT NOT LIMITED TO) INJUNCTIVE RELIEF, WRIT OF POSSESSION OR
THE APPOINTMENT OF A RECEIVER. BANK MAY EXERCISE SUCH SELF HELP RIGHTS,
FORECLOSE UPON SUCH PROPERTY, OR OBTAIN SUCH PROVISIONAL OR ANCILLARY REMEDIES
BEFORE, DURING OR AFTER THE PENDENCY OF ANY ARBITRATION PROCEEDING BROUGHT
PURSUANT TO THIS INSTRUMENT, AGREEMENT OR DOCUMENT. NEITHER THIS EXERCISE OF
SELF HELP REMEDIES NOR THE INSTITUTION OR MAINTENANCE OF AN ACTION FOR
FORECLOSURE OR PROVISIONAL OR ANCILLARY REMEDIES SHALL CONSTITUTE A WAIVER OF
THE RIGHT OF ANY PARTY, INCLUDING THE CLAIMANT IN ANY SUCH ACTION, TO ARBITRATE
THE MERITS OF THE CONTROVERSY OR CLAIM OCCASIONING RESORT TO SUCH REMEDIES.

BORROWER REPRESENTS TO BANK THAT THE PROCEEDS OF THIS LOAN ARE TO BE USED
PRIMARILY FOR BUSINESS, COMMERCIAL OR AGRICULTURAL PURPOSES. BORROWER
ACKNOWLEDGES HAVING READ AND UNDERSTOOD, AND AGREES TO BE BOUND BY, ALL TERMS
AND CONDITIONS OF THIS NOTE AND HEREBY EXECUTES THIS NOTE UNDER SEAL AS OF THE
DATE HERE ABOVE WRITTEN.

<PAGE>   4

NOTICE OF FINAL AGREEMENT. THIS WRITTEN PROMISSORY NOTE REPRESENTS THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

CORPORATE OR PARTNERSHIP BORROWER:

FIRSTWAVE TECHNOLOGIES, INC.

By:    /s/Richard T. Brock                                               (Seal)
    --------------------------------------------------------------------

Name: RICHARD T. BROCK

Title: CEO

-----------------------------------------------------
Attest (If Applicable)

[Corporate Seal]

<PAGE>   5

                                                                 Customer # New

                                                                 CERTIFICATE OF
                                                          CORPORATE RESOLUTIONS

                                   Borrowing

<TABLE>
<CAPTION>
Resolutions of the Board of Directors of:        Authorizing borrowing from:                Type of Company

<S>                                              <C>                                        <C>
Name and Address of Company                      Name and Address of Bank                   Corporation

    Firstwave Technologies, Inc.                     Bank of America, N.A.
    2859 Paces Ferry Road, Ste. 1000                 600 Peachtree St., NE, Suite 1100
    Atlanta, GA 30339                                Atlanta, GA 30308

(hereinafter "Company")                          (hereinafter "Bank")
</TABLE>

I CERTIFY THAT I am the keeper of the records and minutes of meetings of the
Board Of Directors of Company, a corporation chartered under the laws of the
State of GEORGIA, whose correct corporate name and address are stated above,
and that on ___________________________, ______________, a meeting of the Board
of Directors of Company was held in accordance with law and the by-laws of
Company, that a quorum of directors was present, or (if the date was not
completed above pursuant to a written consent signed by all the members of the
Board of Directors) , the following resolutions were duly and legally passed
and have not been revoked, altered or amended:

"RESOLVED, that Company is authorized to borrow from and to incur other
obligations to Bank of every kind, without limit as to the amount and at such
rates of interest and upon such other terms and conditions as Company and Bank
shall agree to, including but not limited to the execution of applications for
letters of credit, currency exchange contracts, and interest rate exchange
agreements, which shall include all such acts, transactions or agreements
undertaken by any officer of Company prior to the date of these
Resolutions("Obligations") , including any and all renewals, modifications or
extensions of indebtedness owed by Company to Bank; and to secure the same by
creation of liens, security interests, or other encumbrances on all or any real
or personal property of Company; and in connection therewith to issue notes and
other evidences of Obligations and to make and execute agreements with Bank
securing or otherwise pertaining to Obligations, including security agreements,
deeds of trust or mortgages, pledge agreements, assignments and any other
agreement securing or pertaining to Obligations; to assign or discount to Bank
commercial paper, chattel paper, rents, leases, accounts, and other assets of
Company upon such terms and with such agreement as Bank and Company shall agree
to; to make indorsements or guaranties in connection with all of the foregoing;
and to renew and extend all of the foregoing; and that any ONE (1) of the
following persons are authorized to act in the name and behalf of Company in
connection with any matters under this Resolution:

                      Names of People Authorized to Borrow
RICHARD T. BROCK

"RESOLVED, that Bank is authorized and directed, without limitation or inquiry,
irrespective of the circumstances, to honor and carry out all orders,
directions or instructions of the above named persons as to the disposition of
any amounts borrowed or credit obtained on behalf of Company hereunder, and
Bank shall be under no obligation or liability for the use or disposition of
any amounts borrowed or credit obtained, and further that Company shall
indemnify and hold harmless Bank from any claim, loss, cost, damage, liability
or expense arising out of its acting on these Resolutions;"

"RESOLVED, that the authority herein given to all of said persons shall remain
irrevocable as far as Bank is concerned until Bank is notified in writing of
the revocation of such authority; and shall have acknowledged in writing
receipt of such notification."

I FURTHER CERTIFY THAT the signatures below are the signatures of the
designated officers of Company and of the persons authorized to borrow money by
the foregoing resolutions:

<TABLE>
<CAPTION>
                                   Signatures/Titles of People
                                       Authorized to Borrow
<S>                                       <C>                                     <C>
x                                         Treasurer                               Title:
Vice President                            Title:                                  Title:
Secretary                                 Title:                                  Title:
</TABLE>

In Witness Whereof, I have set my hand as Secretary of Company, this ________
day of ________________________________, _________________

                                  ---------------------------------------------
        [CORPORATE SEAL]                 Secretary<PAGE>   1
                                                                  EXHIBIT 10.26

SILICON VALLEY BANK
                          LOAN AND SECURITY AGREEMENT

BORROWER:         FIRSTWAVE TECHNOLOGIES, INC.
ADDRESS:          2859 PACES FERRY ROAD, SUITE 1000
                  ATLANTA, GEORGIA 30339

DATE:             DECEMBER 19, 2000

THIS LOAN AND SECURITY AGREEMENT is entered into on the above date between
SILICON VALLEY BANK, COMMERCIAL FINANCE DIVISION ("Silicon"), whose address is
3003 Tasman Drive, Santa Clara, California 95054 and the borrower(s) named
above (jointly and severally, the "Borrower"), whose chief executive office is
located at the above address ("Borrower's Address"). The Schedule to this
Agreement (the "Schedule") shall for all purposes be deemed to be a part of
this Agreement, and the same is an integral part of this Agreement.
(Definitions of certain terms used in this Agreement are set forth in Section 8
below.)

1.       LOANS.

         1.1      LOANS. Upon Borrower's written request therefor (which
request shall be made in manner, form, and substance acceptable to Silicon),
Silicon will make loans to Borrower (the "Loans"), in amounts determined by
Silicon in its sole discretion, up to the amounts (the "Credit Limit") shown on
the Schedule, provided no Default or Event of Default has occurred and is
continuing, and subject to deduction of any Reserves for accrued interest and
such other Reserves as Silicon deems proper from time to time.

         1.2      INTEREST. All Loans and all other monetary Obligations shall
bear interest at the rate shown on the Schedule, except where expressly set
forth to the contrary in this Agreement. Interest shall be payable monthly, on
the last day of the month. Interest may, in Silicon's discretion, be charged to
Borrower's loan account, and the same shall thereafter bear interest at the
same rate as the other Loans. Silicon may, in its discretion, charge interest
to Borrower's Deposit Accounts maintained with Silicon. Regardless of the
amount of Obligations that may be outstanding from time to time, Borrower shall
pay Silicon minimum monthly interest during the term of this Agreement in the
amount set forth on the Schedule (the "Minimum Monthly Interest").

         1.3      OVERADVANCES. If at any time or for any reason the total of
all outstanding Loans and all other Obligations exceeds the Credit Limit (an
"Overadvance"), Borrower shall immediately pay the amount of the excess to
Silicon, without notice or demand. Without limiting Borrower's obligation to
repay to Silicon on demand the amount of any Overadvance, Borrower agrees to
pay Silicon interest on the outstanding amount of any Overadvance, on demand,
at a rate equal to the interest rate which would otherwise be applicable to the
Overadvance, plus an additional 2% per annum.

         1.4      FEES. Borrower shall pay Silicon the fee(s) shown on the
Schedule, which are in addition to all interest and other sums payable to
Silicon and are not refundable.

         1.5      LETTERS OF CREDIT. [Not Applicable]

2.       SECURITY INTEREST.

         2.1      SECURITY INTEREST. To secure the payment and performance of
all of the Obligations when due, Borrower hereby grants to Silicon a security
interest in all of Borrower's interest in the following, whether now owned or
hereafter acquired, and wherever located: All Inventory, Equipment,
Receivables, and General Intangibles, including, without limitation, all of
Borrower's Deposit Accounts, and all money, and all property now or at any time
in the future in Silicon's possession (including claims and credit balances),
and all proceeds (including proceeds of any insurance policies, proceeds of
proceeds and claims against third parties), all products and all books and
records related to any of the foregoing (all of the foregoing, together with
all other property in which Silicon may now or in the future be granted a lien
or security interest, is referred to herein, collectively, as the
"Collateral").

<PAGE>   2

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
-------------------------------------------------------------------------------

3.       REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWER.

         In order to induce Silicon to enter into this Agreement and to make
Loans, Borrower represents and warrants to Silicon as follows, and Borrower
covenants that the following representations will continue to be true, and that
Borrower will at all times comply with all of the following covenants:

         3.1      CORPORATE EXISTENCE AND AUTHORITY. Borrower, if a
corporation, is and will continue to be, duly organized, validly existing and
in good standing under the laws of the jurisdiction of its incorporation.
Borrower is and will continue to be qualified and licensed to do business in
all jurisdictions in which any failure to do so would have a material adverse
effect on Borrower. The execution, delivery and performance by Borrower of this
Agreement, and all other documents contemplated hereby (i) have been duly and
validly authorized, (ii) are enforceable against Borrower in accordance with
their terms (except as enforcement may be limited by equitable principles and
by bankruptcy, insolvency, reorganization, moratorium or similar laws relating
to creditors' rights generally), and (iii) do not violate Borrower's articles
or certificate of incorporation, or Borrower's by-laws, or any law or any
material agreement or instrument which is binding upon Borrower or its
property, and (iv) do not constitute grounds for acceleration of any material
indebtedness or obligation under any material agreement or instrument which is
binding upon Borrower or its property.

         3.2      NAME; TRADE NAMES AND STYLES. The name of Borrower set forth
in the heading to this Agreement is its correct name. Listed on the Schedule
are all prior names of Borrower and all of Borrower's present and prior trade
names. Borrower shall give Silicon 30 days' prior written notice before
changing its name or doing business under any other name. Borrower has
complied, and will in the future comply, with all laws relating to the conduct
of business under a fictitious business name.

         3.3      PLACE OF BUSINESS; LOCATION OF COLLATERAL. The address set
forth in the heading to this Agreement is Borrower's chief executive office. In
addition, Borrower has places of business and Collateral is located only at the
locations set forth on the Schedule. Borrower will give Silicon at least 30
days prior written notice before opening any additional place of business,
changing its chief executive office, or moving any of the Collateral to a
location other than Borrower's Address or one of the locations set forth on the
Schedule.

         3.4      TITLE TO COLLATERAL; PERMITTED LIENS. Borrower is now, and
will at all times in the future be, the sole owner of all the Collateral,
except for items of Equipment which are leased by Borrower. The Collateral now
is and will remain free and clear of any and all liens, charges, security
interests, encumbrances and adverse claims, except for Permitted Liens. Silicon
now has, and will continue to have, a first-priority perfected and enforceable
security interest in all of the Collateral, subject only to the Permitted
Liens, and Borrower will at all times defend Silicon and the Collateral against
all claims of others. None of the Collateral now is or will be affixed to any
real property in such a manner, or with such intent, as to become a fixture.
Borrower is not and will not become a lessee under any real property lease
pursuant to which the lessor may obtain any rights in any of the Collateral and
no such lease now prohibits, restrains, impairs or will prohibit, restrain or
impair Borrower's right to remove any Collateral from the leased premises.
Whenever any Collateral is located upon premises in which any third party has
an interest (whether as owner, mortgagee, beneficiary under a deed of trust,
lien or otherwise), Borrower shall, whenever requested by Silicon, use its best
efforts to cause such third party to execute and deliver to Silicon, in form
acceptable to Silicon, such waivers and subordinations as Silicon shall
specify, so as to ensure that Silicon's rights in the Collateral are, and will
continue to be, superior to the rights of any such third party. Borrower will
keep in full force and effect, and will comply with all the terms of, any lease
of real property where any of the Collateral now or in the future may be
located.

         3.5      MAINTENANCE OF COLLATERAL. Borrower will maintain the
Collateral in good working condition, and Borrower will not use the Collateral
for any unlawful purpose. Borrower will immediately advise Silicon in writing
of any material loss or damage to the Collateral.

         3.6      BOOKS AND RECORDS. Borrower has maintained and will maintain
at Borrower's Address complete and accurate books and records, comprising an
accounting system in accordance with generally accepted accounting principles.

         3.7      FINANCIAL CONDITION, STATEMENTS AND REPORTS. All financial
statements now or in the future delivered to Silicon have been, and will be,
prepared in conformity with generally accepted accounting principles and now
and in the future will completely and accurately reflect the financial
condition of Borrower, at the times and for the periods therein stated. Between
the last date covered by any such statement provided to Silicon and the date
hereof, there has been no material adverse change in the financial condition or
business of Borrower. Borrower is now and will continue to be solvent.

         3.8      TAX RETURNS AND PAYMENTS; PENSION CONTRIBUTIONS. Borrower has
timely filed, and will timely file, all tax returns and reports required by
foreign, federal, state and local law, and Borrower has timely paid, and will
timely pay, all foreign, federal, state and local taxes, assessments, deposits
and contributions now or in the future owed by Borrower. Borrower may, however,
defer payment of any contested taxes, provided that Borrower (i) in good faith
contests Borrower's obligation to pay the taxes by appropriate proceedings
promptly and diligently instituted and conducted, (ii) notifies Silicon in

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writing of the commencement of, and any material development in, the
proceedings, and (iii) posts bonds or takes any other steps required to keep
the contested taxes from becoming a lien upon any of the Collateral. Borrower
is unaware of any claims or adjustments proposed for any of Borrower's prior
tax years which could result in additional taxes becoming due and payable by
Borrower. Borrower has paid, and shall continue to pay all amounts necessary to
fund all present and future pension, profit sharing and deferred compensation
plans in accordance with their terms, and Borrower has not and will not
withdraw from participation in, permit partial or complete termination of, or
permit the occurrence of any other event with respect to, any such plan which
could result in any liability of Borrower, including any liability to the
Pension Benefit Guaranty Corporation or its successors or any other
governmental agency. Borrower shall, at all times, utilize the services of an
outside payroll service providing for the automatic deposit of all payroll
taxes payable by Borrower.

         3.9      COMPLIANCE WITH LAW. Borrower has complied, and will comply,
in all material respects, with all provisions of all foreign, federal, state
and local laws and regulations relating to Borrower, including, but not limited
to, those relating to Borrower's ownership of real or personal property, the
conduct and licensing of Borrower's business, and all environmental matters.

         3.10     LITIGATION. Except as disclosed in the Schedule, there is no
claim, suit, litigation, proceeding or investigation pending or (to best of
Borrower's knowledge) threatened by or against or affecting Borrower in any
court or before any governmental agency (or any basis therefor known to
Borrower) which may result, either separately or in the aggregate, in any
material adverse change in the financial condition or business of Borrower, or
in any material impairment in the ability of Borrower to carry on its business
in substantially the same manner as it is now being conducted. Borrower will
promptly inform Silicon in writing of any claim, proceeding, litigation or
investigation in the future threatened or instituted by or against Borrower
involving any single claim of $50,000 or more, or involving $100,000 or more in
the aggregate.

         3.11     USE OF PROCEEDS. All proceeds of all Loans shall be used
solely for lawful business purposes. Borrower is not purchasing or carrying any
"margin stock" (as defined in Regulation U of the Board of Governors of the
Federal Reserve System) and no part of the proceeds of any Loan will be used to
purchase or carry any "margin stock" or to extend credit to others for the
purpose of purchasing or carrying any "margin stock."

4.       RECEIVABLES.

         4.1      REPRESENTATIONS RELATING TO RECEIVABLES. Borrower represents
and warrants to Silicon as follows: Each Receivable with respect to which Loans
are requested by Borrower shall, on the date each Loan is requested and made,
(i) represent an undisputed bona fide existing unconditional obligation of the
Account Debtor created by the sale, delivery, and acceptance of goods or the
rendition of services in the ordinary course of Borrower's business, and (ii)
meet the Minimum Eligibility Requirements set forth in Section 8 below.

         4.2      REPRESENTATIONS RELATING TO DOCUMENTS AND LEGAL COMPLIANCE.
Borrower represents and warrants to Silicon as follows: All statements made and
all unpaid balances appearing in all invoices, instruments and other documents
evidencing the Receivables are and shall be true and correct and all such
invoices, instruments and other documents and all of Borrower's books and
records are and shall be genuine and in all respects what they purport to be,
and all signatories and endorsers have the capacity to contract. All sales and
other transactions underlying or giving rise to each Receivable shall fully
comply with all applicable laws and governmental rules and regulations. All
signatures and endorsements on all documents, instruments, and agreements
relating to all Receivables are and shall be genuine, and all such documents,
instruments and agreements are and shall be legally enforceable in accordance
with their terms.

         4.3      SCHEDULES AND DOCUMENTS RELATING TO RECEIVABLES. Borrower
shall deliver to Silicon transaction reports and loan requests, schedules and
assignments of all Receivables, and schedules of collections, all on Silicon's
standard forms; provided, however, that Borrower's failure to execute and
deliver the same shall not affect or limit Silicon's security interest and
other rights in all of Borrower's Receivables, nor shall Silicon's failure to
advance or lend against a specific Receivable affect or limit Silicon's
security interest and other rights therein. Loan requests received after 12:00
Noon will not be considered by Silicon until the next Business Day. Together
with each such schedule and assignment, or later if requested by Silicon,
Borrower shall furnish Silicon with copies (or, at Silicon's request,
originals) of all contracts, orders, invoices, and other similar documents, and
all original shipping instructions, delivery receipts, bills of lading, and
other evidence of delivery, for any goods the sale or disposition of which gave
rise to such Receivables, and Borrower warrants the genuineness of all of the
foregoing. Borrower shall also furnish to Silicon an aged accounts receivable
trial balance in such form and at such intervals as Silicon shall request. In
addition, Borrower shall deliver to Silicon the originals of all instruments,
chattel paper, security agreements, guarantees and other documents and property
evidencing or securing any Receivables, immediately upon receipt thereof and in
the same form as received, with all necessary indorsements, all of which shall
be with recourse. Borrower shall also provide Silicon with copies of all credit
memos within two days after the date issued.

         4.4      COLLECTION OF RECEIVABLES. Borrower shall have the right to
collect all Receivables, unless and until a Default or an Event of Default has
occurred. Borrower shall hold all payments on, and proceeds of, Receivables in
trust for

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SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
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Silicon, and Borrower shall immediately deliver all such payments and
proceeds to Silicon in their original form, duly endorsed in blank, to be
applied to the Obligations in such order as Silicon shall determine. Silicon
may, in its discretion, require that all proceeds of Collateral be deposited by
Borrower into a lockbox account, or such other "blocked account" as Silicon may
specify, pursuant to a blocked account agreement in such form as Silicon may
specify. Silicon or its designee may, at any time, notify Account Debtors that
the Receivables have been assigned to Silicon.

         4.5.     REMITTANCE OF PROCEEDS. All proceeds arising from the
disposition of any Collateral shall be delivered, in kind, by Borrower to
Silicon in the original form in which received by Borrower not later than the
following Business Day after receipt by Borrower, to be applied to the
Obligations in such order as Silicon shall determine; provided that, if no
Default or Event of Default has occurred, Borrower shall not be obligated to
remit to Silicon the proceeds of the sale of worn out or obsolete equipment
disposed of by Borrower in good faith in an arm's length transaction for an
aggregate purchase price of $25,000 or less (for all such transactions in any
fiscal year). Borrower agrees that it will not commingle proceeds of Collateral
with any of Borrower's other funds or property, but will hold such proceeds
separate and apart from such other funds and property and in an express trust
for Silicon. Nothing in this Section limits the restrictions on disposition of
Collateral set forth elsewhere in this Agreement.

         4.6      DISPUTES. Borrower shall notify Silicon promptly of all
disputes or claims relating to Receivables. Borrower shall not forgive
(completely or partially), compromise or settle any Receivable for less than
payment in full, or agree to do any of the foregoing, except that Borrower may
do so, provided that: (i) Borrower does so in good faith, in a commercially
reasonable manner, in the ordinary course of business, and in arm's length
transactions, which are reported to Silicon on the regular reports provided to
Silicon; (ii) no Default or Event of Default has occurred and is continuing;
and (iii) taking into account all such discounts settlements and forgiveness,
the total outstanding Loans will not exceed the Credit Limit. Silicon may, at
any time after the occurrence of an Event of Default, settle or adjust disputes
or claims directly with Account Debtors for amounts and upon terms which
Silicon considers advisable in its reasonable credit judgment and, in all
cases, Silicon shall credit Borrower's Loan account with only the net amounts
received by Silicon in payment of any Receivables.

         4.7      RETURNS. Provided no Event of Default has occurred and is
continuing, if any Account Debtor returns any Inventory to Borrower in the
ordinary course of its business, Borrower shall promptly determine the reason
for such return and promptly issue a credit memorandum to the Account Debtor in
the appropriate amount (sending a copy to Silicon). In the event any attempted
return occurs after the occurrence of any Event of Default, Borrower shall (i)
hold the returned Inventory in trust for Silicon, (ii) segregate all returned
Inventory from all of Borrower's other property, (iii) conspicuously label the
returned Inventory as Silicon's property, and (iv) immediately notify Silicon
of the return of any Inventory, specifying the reason for such return, the
location and condition of the returned Inventory, and on Silicon's request
deliver such returned Inventory to Silicon.

         4.8      VERIFICATION. Silicon may, from time to time, verify directly
with the respective Account Debtors the validity, amount and other matters
relating to the Receivables, by means of mail, telephone or otherwise, either
in the name of Borrower or Silicon or such other name as Silicon may choose.

         4.9      NO LIABILITY. Silicon shall not under any circumstances be
responsible or liable for any shortage or discrepancy in, damage to, or loss or
destruction of, any goods, the sale or other disposition of which gives rise to
a Receivable, or for any error, act, omission, or delay of any kind occurring
in the settlement, failure to settle, collection or failure to collect any
Receivable, or for settling any Receivable in good faith for less than the full
amount thereof, nor shall Silicon be deemed to be responsible for any of
Borrower's obligations under any contract or agreement giving rise to a
Receivable. Nothing herein shall, however, relieve Silicon from liability for
its own gross negligence or willful misconduct.

5.       ADDITIONAL DUTIES OF THE BORROWER.

         5.1      FINANCIAL AND OTHER COVENANTS. Borrower shall at all times
comply with the financial and other covenants set forth in the Schedule.

         5.2      INSURANCE. Borrower shall, at all times insure all of the
tangible personal property Collateral and carry such other business insurance,
with insurers reasonably acceptable to Silicon, in such form and amounts as
Silicon may reasonably require, and Borrower shall provide evidence of such
insurance to Silicon, so that Silicon is satisfied that such insurance is, at
all times, in full force and effect. All such insurance policies shall name
Silicon as an additional loss payee, and shall contain a lenders loss payee
endorsement in form reasonably acceptable to Silicon. Upon receipt of the
proceeds of any such insurance, Silicon shall apply such proceeds in reduction
of the Obligations as Silicon shall determine in its sole discretion, except
that, provided no Default or Event of Default has occurred and is continuing,
Silicon shall release to Borrower insurance proceeds with respect to Equipment
totaling less than $100,000, which shall be utilized by Borrower for the
replacement of the Equipment with respect to which the insurance proceeds were
paid. Silicon may require reasonable assurance that the insurance proceeds so
released will be so used. If

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SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
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Borrower fails to provide or pay for any insurance, Silicon may, but is not
obligated to, obtain the same at Borrower's expense. Borrower shall promptly
deliver to Silicon copies of all reports made to insurance companies.

         5.3      REPORTS. Borrower, at its expense, shall provide Silicon with
the written reports set forth in the Schedule, and such other written reports
with respect to Borrower (including budgets, sales projections, operating plans
and other financial documentation), as Silicon shall from time to time
reasonably specify.

         5.4      ACCESS TO COLLATERAL, BOOKS AND RECORDS. At reasonable times,
and on * one Business Day's notice, Silicon, or its agents, shall have the
right to inspect the Collateral, and the right to audit and copy Borrower's
books and records. Silicon shall take reasonable steps to keep confidential all
information obtained in any such inspection or audit, but Silicon shall have
the right to disclose any such information to its auditors, regulatory
agencies, and attorneys, and pursuant to any subpoena or other legal process.
The foregoing inspections and audits shall be at Borrower's expense and the
charge therefor shall be $600 per person per day (or such higher amount as
shall represent Silicon's then current standard charge for the same), plus
reasonable out of pocket expenses. Borrower will not enter into any agreement
with any accounting firm, service bureau or third party to store Borrower's
books or records at any location other than Borrower's Address, without first
obtaining Silicon's written consent, which may be conditioned upon such
accounting firm, service bureau or other third party agreeing to give Silicon
the same rights with respect to access to books and records and related rights
as Silicon has under this Loan Agreement. Borrower waives the benefit of any
accountant-client privilege or other evidentiary privilege precluding or
limiting the disclosure, divulgence or delivery of any of its books and records
(except that Borrower does not waive any attorney-client privilege).

         * AT LEAST

         5.5      NEGATIVE COVENANTS. Except as may be permitted in the
Schedule, Borrower shall not, without Silicon's prior written consent, do any
of the following: (i) merge or consolidate with another corporation or entity;
(ii) acquire any assets, except in the ordinary course of business; (iii) enter
into any other transaction outside the ordinary course of business; (iv) sell
or transfer any Collateral, except for the sale of finished Inventory in the
ordinary course of Borrower's business, and except for the sale of obsolete or
unneeded Equipment in the ordinary course of business; (v) store any Inventory
or other Collateral with any warehouseman or other third party; (vi) sell any
Inventory on a sale-or-return, guaranteed sale, consignment, or other
contingent basis; (vii) make any loans of any money or other assets; (viii)
incur any debts, outside the ordinary course of business, which would have a
material, adverse effect on Borrower or on the prospect of repayment of the
Obligations; (ix) guarantee or otherwise become liable with respect to the
obligations of another party or entity; (x) pay or declare any dividends on
Borrower's stock (except for dividends payable solely in stock of Borrower);
(xi) redeem, retire, purchase or otherwise acquire, directly or indirectly, any
of Borrower's stock; (xii) make any change in Borrower's capital structure
which would have a material adverse effect on Borrower or on the prospect of
repayment of the Obligations; or (xiii) *; or (xiv) dissolve or elect to
dissolve. Transactions permitted by the foregoing provisions of this Section
are only permitted if no Default or Event of Default would occur as a result of
such transaction.

         * [INTENTIONALLY OMITTED]

         5.6      LITIGATION COOPERATION. Should any third-party suit or
proceeding be instituted by or against Silicon with respect to any Collateral
or in any manner relating to Borrower, Borrower shall, without expense to
Silicon, make available Borrower and its officers, employees and agents and
Borrower's books and records, to the extent that Silicon may deem them
reasonably necessary in order to prosecute or defend any such suit or
proceeding.

         5.7      FURTHER ASSURANCES. Borrower agrees, at its expense, on
request by Silicon, to execute all documents and take all actions, as Silicon,
may deem reasonably necessary or useful in order to perfect and maintain
Silicon's perfected security interest in the Collateral, and in order to fully
consummate the transactions contemplated by this Agreement.

6.       TERM.

         6.1      MATURITY DATE. This Agreement shall continue in effect until
the maturity date set forth on the Schedule (the "Maturity Date"), subject to
Section 6.3 below.

         6.2      EARLY TERMINATION. This Agreement may be terminated prior to
the Maturity Date as follows: (i) by Borrower, effective three Business Days
after written notice of termination is given to Silicon; or (ii) by Silicon at
any time after the occurrence of an Event of Default, without notice, effective
immediately. If this Agreement is terminated by Borrower or by Silicon under
this Section 6.2, Borrower shall pay to Silicon a termination fee in an amount
equal to * of the Maximum Credit Limit, provided that no termination fee shall
be charged if the credit facility hereunder is replaced with a new facility from
another division of Silicon Valley Bank. The termination fee shall be due and
payable on the effective date of termination and thereafter shall bear interest
at a rate equal to the highest rate applicable to any of the Obligations.

<PAGE>   6

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
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         * ONE PERCENT (1.0%)

         6.3      PAYMENT OF OBLIGATIONS. On the Maturity Date or on any
earlier effective date of termination, Borrower shall pay and perform in full
all Obligations, whether evidenced by installment notes or otherwise, and
whether or not all or any part of such Obligations are otherwise then due and
payable. Without limiting the generality of the foregoing, if on the Maturity
Date, or on any earlier effective date of termination, there are any
outstanding Letters of Credit issued by Silicon or issued by another
institution based upon an application, guarantee, indemnity or similar
agreement on the part of Silicon, then on such date Borrower shall provide to
Silicon cash collateral in an amount equal to the face amount of all such
Letters of Credit plus all interest, fees and cost due or to become due in
connection therewith, to secure all of the Obligations relating to said Letters
of Credit, pursuant to Silicon's then standard form cash pledge agreement.
Notwithstanding any termination of this Agreement, all of Silicon's security
interests in all of the Collateral and all of the terms and provisions of this
Agreement shall continue in full force and effect until all Obligations have
been paid and performed in full; provided that, without limiting the fact that
Loans are subject to the discretion of Silicon, Silicon may, in its sole
discretion, refuse to make any further Loans after termination. No termination
shall in any way affect or impair any right or remedy of Silicon, nor shall any
such termination relieve Borrower of any Obligation to Silicon, until all of
the Obligations have been paid and performed in full. Upon payment and
performance in full of all the Obligations and termination of this Agreement,
Silicon shall promptly deliver to Borrower termination statements, requests for
reconveyances and such other documents as may be required to fully terminate
Silicon's security interests.

7.       EVENTS OF DEFAULT AND REMEDIES.

         7.1      EVENTS OF DEFAULT. The occurrence of any of the following
events shall constitute an "Event of Default" under this Agreement, and
Borrower shall give Silicon immediate written notice thereof: (a) Any warranty,
representation, statement, report or certificate made or delivered to Silicon
by Borrower or any of Borrower's officers, employees or agents, now or in the
future, shall be untrue or misleading in a material respect; or (b) Borrower
shall fail to pay when due any Loan or any interest thereon or any other
monetary Obligation *; or (c) the total Loans and other Obligations outstanding
at any time shall exceed the Credit Limit *; or (d) Borrower shall fail to
comply with any of the financial covenants set forth in the Schedule or shall
fail to perform any other non-monetary Obligation which by its nature cannot be
cured; or (e) Borrower shall fail to perform any other non-monetary Obligation,
which failure is not cured within 5 Business Days after the date due; or (f)
any levy, assessment, attachment, seizure, lien or encumbrance (other than a
Permitted Lien) is made on all or any part of the Collateral which is not cured
within 10 ** after the occurrence of the same; or (g) any default or event
of default occurs under any obligation secured by a Permitted Lien, which is
not cured within any applicable cure period or waived in writing by the holder
of the Permitted Lien; or (h) Borrower breaches any material contract or
obligation, which has or may reasonably be expected to have a material adverse
effect on Borrower's business or financial condition; or (i) Dissolution,
termination of existence, insolvency or business failure of Borrower; or
appointment of a receiver, trustee or custodian, for all or any part of the
property of, assignment for the benefit of creditors by, or the commencement of
any proceeding by Borrower under any reorganization, bankruptcy, insolvency,
arrangement, readjustment of debt, dissolution or liquidation law or statute of
any jurisdiction, now or in the future in effect; or (j) the commencement of
any proceeding against Borrower or any guarantor of any of the Obligations
under any reorganization, bankruptcy, insolvency, arrangement, readjustment of
debt, dissolution or liquidation law or statute of any jurisdiction, now or in
the future in effect, which is not cured by the dismissal thereof within 30
days after the date commenced; or (k) revocation or termination of, or
limitation or denial of liability upon, any guaranty of the Obligations or any
attempt to do any of the foregoing, or commencement of proceedings by any
guarantor of any of the Obligations under any bankruptcy or insolvency law; or
(l) revocation or termination of, or limitation or denial of liability upon,
any pledge of any certificate of deposit, securities or other property or asset
of any kind pledged by any third party to secure any or all of the Obligations,
or any attempt to do any of the foregoing, or commencement of proceedings by or
against any such third party under any bankruptcy or insolvency law; or (m)
Borrower makes any payment on account of any indebtedness or obligation which
has been subordinated to the Obligations other than as permitted in the
applicable subordination agreement, or if any Person who has subordinated such
indebtedness or obligations terminates or in any way limits his subordination
agreement; or (n) there shall be a change in the record or beneficial ownership
of an aggregate of more than 20% of the outstanding shares of stock of
Borrower, in one or more transactions, compared to the ownership of outstanding
shares of stock of Borrower in effect on the date hereof, without the prior
written consent of Silicon; or (o) Borrower shall generally not pay its debts
as they become due, or Borrower shall conceal, remove or transfer any part of
its property, with intent to hinder, delay or defraud its creditors, or make or
suffer any transfer of any of its property which may be fraudulent under any
bankruptcy, fraudulent conveyance or similar law; or (p) there shall be a
material adverse change in Borrower's business or financial condition; or (q)
Silicon, acting in good faith and in a commercially reasonable manner, deems
itself insecure because of the occurrence of an event prior to the effective
date hereof of which Silicon had no knowledge on the effective date or because

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of the occurrence of an event on or subsequent to the effective date ***.
Silicon may cease making any Loans hereunder during any of the above cure
periods, and thereafter if an Event of Default has occurred.

         * ; PROVIDED, HOWEVER, THAT IN THE CASE OF OVERADVANCES THAT ARE
CAUSED DIRECTLY AND SOLELY BY THE CHARGING OF INTEREST, FEES, OR SILICON'S
EXPENSES TO BORROWER'S LOAN ACCOUNT, SUCH EVENT SHALL NOT CONSTITUTE AN EVENT
OF DEFAULT IF, WITHIN 3 BUSINESS DAYS OF INCURRING SUCH OVERADVANCE, BORROWER
REPAYS, OR OTHERWISE ELIMINATES, SUCH OVERADVANCE;

         ** BUSINESS DAYS

         *** ; OR (R) AN "EVENT OF DEFAULT" HAS OCCURRED AND IS CONTINUING
UNDER THAT CERTAIN OTHER LOAN AND SECURITY AGREEMENT, DATED AS OF JUNE 28, 2000
(AS AMENDED, RESTATED, SUPPLEMENTED, OR OTHERWISE MODIFIED FROM TIME TO TIME),
BETWEEN BORROWER AND SILICON VALLEY BANK

         7.2      REMEDIES. Upon the occurrence of any Event of Default, and at
any time thereafter, Silicon, at its option, and without notice or demand of
any kind (all of which are hereby expressly waived by Borrower), may do any one
or more of the following: (a) Cease making Loans or otherwise extending credit
to Borrower under this Agreement or any other document or agreement; (b)
Accelerate and declare all or any part of the Obligations to be immediately
due, payable, and performable, notwithstanding any deferred or installment
payments allowed by any instrument evidencing or relating to any Obligation;
(c) Take possession of any or all of the Collateral wherever it may be found,
and for that purpose Borrower hereby authorizes Silicon without judicial
process to enter onto any of Borrower's premises without interference to search
for, take possession of, keep, store, or remove any of the Collateral, and
remain on the premises or cause a custodian to remain on the premises in
exclusive control thereof, without charge for so long as Silicon deems it
reasonably necessary in order to complete the enforcement of its rights under
this Agreement or any other agreement; provided, however, that should Silicon
seek to take possession of any of the Collateral by Court process, Borrower
hereby irrevocably waives: (i) any bond and any surety or security relating
thereto required by any statute, court rule or otherwise as an incident to such
possession; (ii) any demand for possession prior to the commencement of any
suit or action to recover possession thereof; and (iii) any requirement that
Silicon retain possession of, and not dispose of, any such Collateral until
after trial or final judgment; (d) Require Borrower to assemble any or all of
the Collateral and make it available to Silicon at places designated by Silicon
which are reasonably convenient to Silicon and Borrower, and to remove the
Collateral to such locations as Silicon may deem advisable; (e) Complete the
processing, manufacturing or repair of any Collateral prior to a disposition
thereof and, for such purpose and for the purpose of removal, Silicon shall
have the right to use Borrower's premises, vehicles, hoists, lifts, cranes,
equipment and all other property without charge; (f) Sell, lease or otherwise
dispose of any of the Collateral, in its condition at the time Silicon obtains
possession of it or after further manufacturing, processing or repair, at one
or more public and/or private sales, in lots or in bulk, for cash, exchange or
other property, or on credit, and to adjourn any such sale from time to time
without notice other than oral announcement at the time scheduled for sale.
Silicon shall have the right to conduct such disposition on Borrower's premises
without charge, for such time or times as Silicon deems reasonable, or on
Silicon's premises, or elsewhere and the Collateral need not be located at the
place of disposition. Silicon may directly or through any affiliated company
purchase or lease any Collateral at any such public disposition, and if
permissible under applicable law, at any private disposition. Any sale or other
disposition of Collateral shall not relieve Borrower of any liability Borrower
may have if any Collateral is defective as to title or physical condition or
otherwise at the time of sale; (g) Demand payment of, and collect any
Receivables and General Intangibles comprising Collateral and, in connection
therewith, Borrower irrevocably authorizes Silicon to endorse or sign
Borrower's name on all collections, receipts, instruments and other documents,
to take possession of and open mail addressed to Borrower and remove therefrom
payments made with respect to any item of the Collateral or proceeds thereof,
and, in Silicon's sole discretion, to grant extensions of time to pay,
compromise claims and settle Receivables and the like for less than face value;
(h) Offset against any sums in any of Borrower's general, special or other
Deposit Accounts with Silicon; and (i) Demand and receive possession of any of
Borrower's federal and state income tax returns and the books and records
utilized in the preparation thereof or referring thereto. All reasonable
attorneys' fees, expenses, costs, liabilities and obligations incurred by
Silicon with respect to the foregoing shall be added to and become part of the
Obligations, shall be due on demand, and shall bear interest at a rate equal to
the highest interest rate applicable to any of the Obligations. Without
limiting any of Silicon's rights and remedies, from and after the occurrence of
any Event of Default, the interest rate applicable to the Obligations shall be
increased by an additional four percent per annum.

         7.3      STANDARDS FOR DETERMINING COMMERCIAL REASONABLENESS. Borrower
and Silicon agree that a sale or other disposition (collectively, "sale") of
any Collateral which complies with the following standards will conclusively be
deemed to be commercially reasonable: (i) Notice of the sale is given to
Borrower at least seven days prior to the sale, and, in the case of a public
sale, notice of the sale is published at least seven days before the sale in a
newspaper of general circulation in the county where the sale is to be
conducted; (ii) Notice of the sale describes the collateral in general,
non-specific terms; (iii)

<PAGE>   8

The sale is conducted at a place designated by Silicon, with or without the
Collateral being present; (iv) The sale commences at any time between 8:00 a.m.
and 6:00 p.m; (v) Payment of the purchase price in cash or by cashier's check
or wire transfer is required; (vi) With respect to any sale of any of the
Collateral, Silicon may (but is not obligated to) direct any prospective
purchaser to ascertain directly from Borrower any and all information
concerning the same. Silicon shall be free to employ other methods of noticing
and selling the Collateral, in its discretion, if they are commercially
reasonable.

         7.4      POWER OF ATTORNEY. Upon the occurrence of any Event of
Default, without limiting Silicon's other rights and remedies, Borrower grants
to Silicon an irrevocable power of attorney coupled with an interest,
authorizing and permitting Silicon (acting through any of its employees,
attorneys or agents) at any time, at its option, but without obligation, with
or without notice to Borrower, and at Borrower's expense, to do any or all of
the following, in Borrower's name or otherwise, but Silicon agrees to exercise
the following powers in a commercially reasonable manner: (a) Execute on behalf
of Borrower any documents that Silicon may, in its sole discretion, deem
advisable in order to perfect and maintain Silicon's security interest in the
Collateral, or in order to exercise a right of Borrower or Silicon, or in order
to fully consummate all the transactions contemplated under this Agreement, and
all other present and future agreements; (b) Execute on behalf of Borrower any
document exercising, transferring or assigning any option to purchase, sell or
otherwise dispose of or to lease (as lessor or lessee) any real or personal
property which is part of Silicon's Collateral or in which Silicon has an
interest; (c) Execute on behalf of Borrower, any invoices relating to any
Receivable, any draft against any Account Debtor and any notice to any Account
Debtor, any proof of claim in bankruptcy, any Notice of Lien, claim of
mechanic's, materialman's or other lien, or assignment or satisfaction of
mechanic's, materialman's or other lien; (d) Take control in any manner of any
cash or non-cash items of payment or proceeds of Collateral; endorse the name
of Borrower upon any instruments, or documents, evidence of payment or
Collateral that may come into Silicon's possession; (e) Endorse all checks and
other forms of remittances received by Silicon; (f) Pay, contest or settle any
lien, charge, encumbrance, security interest and adverse claim in or to any of
the Collateral, or any judgment based thereon, or otherwise take any action to
terminate or discharge the same; (g) Grant extensions of time to pay,
compromise claims and settle Receivables and General Intangibles for less than
face value and execute all releases and other documents in connection
therewith; (h) Pay any sums required on account of Borrower's taxes or to
secure the release of any liens therefor, or both; (i) Settle and adjust, and
give releases of, any insurance claim that relates to any of the Collateral and
obtain payment therefor; (j) Instruct any third party having custody or control
of any books or records belonging to, or relating to, Borrower to give Silicon
the same rights of access and other rights with respect thereto as Silicon has
under this Agreement; and (k) Take any action or pay any sum required of
Borrower pursuant to this Agreement and any other present or future agreements.
Any and all reasonable sums paid and any and all reasonable costs, expenses,
liabilities, obligations and attorneys' fees incurred by Silicon with respect
to the foregoing shall be added to and become part of the Obligations, shall be
payable on demand, and shall bear interest at a rate equal to the highest
interest rate applicable to any of the Obligations. In no event shall Silicon's
rights under the foregoing power of attorney or any of Silicon's other rights
under this Agreement be deemed to indicate that Silicon is in control of the
business, management or properties of Borrower.

         7.5      APPLICATION OF PROCEEDS. All proceeds realized as the result
of any sale of the Collateral shall be applied by Silicon first to the
reasonable costs, expenses, liabilities, obligations and attorneys' fees
incurred by Silicon in the exercise of its rights under this Agreement, second
to the interest due upon any of the Obligations, and third to the principal of
the Obligations, in such order as Silicon shall determine in its sole
discretion. Any surplus shall be paid to Borrower or other persons legally
entitled thereto; Borrower shall remain liable to Silicon for any deficiency.
If, Silicon, in its sole discretion, directly or indirectly enters into a
deferred payment or other credit transaction with any purchaser at any sale of
Collateral, Silicon shall have the option, exercisable at any time, in its sole
discretion, of either reducing the Obligations by the principal amount of
purchase price or deferring the reduction of the Obligations until the actual
receipt by Silicon of the cash therefor.

         7.6      REMEDIES CUMULATIVE. In addition to the rights and remedies
set forth in this Agreement, Silicon shall have all the other rights and
remedies accorded a secured party under the California Uniform Commercial Code
and under all other applicable laws, and under any other instrument or
agreement now or in the future entered into between Silicon and Borrower, and
all of such rights and remedies are cumulative and none is exclusive. Exercise
or partial exercise by Silicon of one or more of its rights or remedies shall
not be deemed an election, nor bar Silicon from subsequent exercise or partial
exercise of any other rights or remedies. The failure or delay of Silicon to
exercise any rights or remedies shall not operate as a waiver thereof, but all
rights and remedies shall continue in full force and effect until all of the
Obligations have been fully paid and performed.

8.       DEFINITIONS. As used in this Agreement, the following terms have the
following meanings:

         "Account Debtor" means the obligor on a Receivable.

         "Affiliate" means, with respect to any Person, a relative, partner,
shareholder, director, officer, or employee of such Person, or any parent or
subsidiary of

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SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
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such Person, or any Person controlling, controlled by or under common control
with such Person.

         "Bank of America Note" means that certain promissory note, dated
September 27, 2000, made by Borrower to the order of Bank of America in the
original principal amount of $700,000.

         "Business Day" means a day on which Silicon is open for business.

         "Code" means the Uniform Commercial Code as adopted and in effect in
the State of California from time to time.

         "Collateral" has the meaning set forth in Section 2.1 above.

         "Default" means any event which with notice or passage of time or
both, would constitute an Event of Default.

         "Deposit Account" has the meaning set forth in Section 9105 of the
Code.

         "Eligible Inventory" [NOT APPLICABLE].

         "Eligible Receivables" means Receivables arising in the ordinary
course of Borrower's business from the sale of goods or rendition of services,
which Silicon, in its sole judgment, shall deem eligible for borrowing, based
on such considerations as Silicon may from time to time deem appropriate.
Without limiting the fact that the determination of which Receivables are
eligible for borrowing is a matter of Silicon's discretion, the following (the
"Minimum Eligibility Requirements") are the minimum requirements for a
Receivable to be an Eligible Receivable: (i) the Receivable must not be
outstanding for more than 90 days from its invoice date, (ii) the Receivable
must not represent progress billings, * or be due under a fulfillment or
requirements contract with the Account Debtor, (iii) the Receivable must not be
subject to any contingencies (including Receivables arising from sales on
consignment, guaranteed sale or other terms pursuant to which payment by the
Account Debtor may be conditional), (iv) the Receivable must not be owing from
an Account Debtor with whom the Borrower has any dispute (whether or not
relating to the particular Receivable), (v) the Receivable must not be owing
from an Affiliate of Borrower, (vi) the Receivable must not be owing from an
Account Debtor which is subject to any insolvency or bankruptcy proceeding, or
whose financial condition is not acceptable to Silicon, or which, fails or goes
out of a material portion of its business, (vii) the Receivable must not be
owing from the United States or any department, agency or instrumentality
thereof (unless there has been compliance, to Silicon's satisfaction, with the
United States Assignment of Claims Act), (viii) the Receivable must not be
owing from an Account Debtor located outside the United States or Canada
(unless pre-approved by Silicon in its discretion in writing, or backed by a
letter of credit satisfactory to Silicon, or FCIA insured satisfactory to
Silicon), (ix) the Receivable must not be owing from an Account Debtor to whom
Borrower is or may be liable for goods purchased from such Account Debtor or
otherwise. Receivables owing from one Account Debtor will not be deemed
Eligible Receivables to the extent they exceed 25% of the total Receivables
outstanding. In addition, if more than 50% of the Receivables owing from an
Account Debtor are outstanding more than 90 days from their invoice date
(without regard to unapplied credits) or are otherwise not eligible
Receivables, then all Receivables owing from that Account Debtor will be deemed
ineligible for borrowing. Silicon may, from time to time, in its discretion,
revise the Minimum Eligibility Requirements, upon written notice to the
Borrower.

         * PREPAID CUSTOMER DEPOSITS, PREPAID MAINTENANCE/SUPPORT, OR OTHER
ADVANCE BILLINGS THAT ARE DUE PRIOR TO THE COMPLETION OF PERFORMANCE BY
BORROWER OF THE SUBJECT CONTRACT FOR GOODS OR SERVICES,

         "Equipment" means all of Borrower's present and hereafter acquired
machinery, molds, machine tools, motors, furniture, equipment, furnishings,
fixtures, trade fixtures, motor vehicles, tools, parts, dyes, jigs, goods and
other tangible personal property (other than Inventory) of every kind and
description used in Borrower's operations or owned by Borrower and any interest
in any of the foregoing, and all attachments, accessories, accessions,
replacements, substitutions, additions or improvements to any of the foregoing,
wherever located.

         "Event of Default" means any of the events set forth in Section 7.1 of
this Agreement.

         "General Intangibles" means all general intangibles of Borrower,
whether now owned or hereafter created or acquired by Borrower, including,
without limitation, all choses in action, causes of action, corporate or other
business records, Deposit Accounts, inventions, designs, drawings, blueprints,
patents, patent applications, trademarks and the goodwill of the business
symbolized thereby, names, trade names, trade secrets, goodwill, copyrights,
registrations, licenses, franchises, customer lists, security and other
deposits, rights in all litigation presently or hereafter pending for any cause
or claim (whether in contract, tort or otherwise), and all judgments now or
hereafter arising therefrom, all claims of Borrower against Silicon, rights to
purchase or sell real or personal property, rights as a licensor or licensee of
any kind, royalties, telephone numbers, proprietary information, purchase
orders, and all insurance policies and claims (including without limitation
life insurance, key man insurance, credit insurance, liability insurance,
property insurance and other insurance), tax refunds and claims, computer
programs, discs, tapes and tape files, claims under guaranties, security
interests or other security held by or granted to Borrower, all rights to
indemnification and all other intangible property of every kind and nature
(other than Receivables).

<PAGE>   10

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
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         "Inventory" means all of Borrower's now owned and hereafter acquired
goods, merchandise or other personal property, wherever located, to be
furnished under any contract of service or held for sale or lease (including
without limitation all raw materials, work in process, finished goods and goods
in transit), and all materials and supplies of every kind, nature and
description which are or might be used or consumed in Borrower's business or
used in connection with the manufacture, packing, shipping, advertising,
selling or finishing of such goods, merchandise or other personal property, and
all warehouse receipts, documents of title and other documents representing any
of the foregoing.

         "Obligations" means all present and future Loans, advances, debts,
liabilities, obligations, guaranties, covenants, duties and indebtedness at any
time owing by Borrower to Silicon, whether evidenced by this Agreement or any
note or other instrument or document, whether arising from an extension of
credit, opening of a letter of credit, banker's acceptance, loan, guaranty,
indemnification or otherwise, whether direct or indirect (including, without
limitation, those acquired by assignment and any participation by Silicon in
Borrower's debts owing to others), absolute or contingent, due or to become
due, including, without limitation, all interest, charges, expenses, fees,
attorney's fees, expert witness fees, audit fees, letter of credit fees,
collateral monitoring fees, closing fees, facility fees, termination fees,
minimum interest charges and any other sums chargeable to Borrower under this
Agreement or under any other present or future instrument or agreement between
Borrower and Silicon.

         "Permitted Liens" means the following: (i) purchase money security
interests in specific items of Equipment; (ii) leases of specific items of
Equipment; (iii) liens for taxes not yet payable; (iv) additional security
interests and liens consented to in writing by Silicon, which consent shall not
be unreasonably withheld; (v) security interests being terminated substantially
concurrently with this Agreement; (vi) liens of materialmen, mechanics,
warehousemen, carriers, or other similar liens arising in the ordinary course
of business and securing obligations which are not delinquent; (vii) liens
incurred in connection with the extension, renewal or refinancing of the
indebtedness secured by liens of the type described above in clauses (i) or
(ii) above, provided that any extension, renewal or replacement lien is limited
to the property encumbered by the existing lien and the principal amount of the
indebtedness being extended, renewed or refinanced does not increase; (viii)
Liens in favor of customs and revenue authorities which secure payment of
customs duties in connection with the importation of goods *. Silicon will have
the right to require, as a condition to its consent under subparagraph (iv)
above, that the holder of the additional security interest or lien sign an
intercreditor agreement on Silicon's then standard form, acknowledge that the
security interest is subordinate to the security interest in favor of Silicon,
and agree not to take any action to enforce its subordinate security interest
so long as any Obligations remain outstanding, and that Borrower agree that any
uncured default in any obligation secured by the subordinate security interest
shall also constitute an Event of Default under this Agreement.

         * ; AND (IX) A SECURITY INTEREST IN ONE OR MORE CERTIFICATES OF
DEPOSIT OF BORROWER IN AN AGGREGATE AMOUNT NOT TO EXCEED $700,000 TO SECURE
SOLELY BORROWER'S OBLIGATIONS IN RESPECT OF THE BANK OF AMERICA NOTE, THE
PRINCIPAL AMOUNT OF WHICH OBLIGATIONS MAY NOT EXCEED $700,000 IN THE AGGREGATE
AT ANY ONE TIME OUTSTANDING

         "Person" means any individual, sole proprietorship, partnership, joint
venture, trust, unincorporated organization, association, corporation,
government, or any agency or political division thereof, or any other entity.

         "Receivables" means all of Borrower's now owned and hereafter acquired
accounts (whether or not earned by performance), letters of credit, contract
rights, chattel paper, instruments, securities, securities accounts, investment
property, documents and all other forms of obligations at any time owing to
Borrower, all guaranties and other security therefor, all merchandise returned
to or repossessed by Borrower, and all rights of stoppage in transit and all
other rights or remedies of an unpaid vendor, lienor or secured party.

         "Reserves" means, as of any date of determination, such amounts as
Silicon may from time to time establish and revise in good faith reducing the
amount of Loans, Letters of Credit and other financial accommodations which
would otherwise be available to Borrower under the lending formula(s) provided
in the Schedule: (a) to reflect events, conditions, contingencies or risks
which, as determined by Silicon in good faith, do or may affect (i) the
Collateral or any other property which is security for the Obligations or its
value (including without limitation any increase in delinquencies of
Receivables), (ii) the assets, business or prospects of Borrower or any
Guarantor, or (iii) the security interests and other rights of Silicon in the
Collateral (including the enforceability, perfection and priority thereof); or
(b) to reflect Silicon's good faith belief that any collateral report or
financial information furnished by or on behalf of Borrower or any Guarantor to
Silicon is or may have been incomplete, inaccurate or misleading in any
material respect *; or (c) in respect of any state of facts which Silicon
determines in good faith constitutes an Event of Default or may, with notice or
passage of time or both, constitute an Event of Default.

         * , INCLUDING, WITHOUT LIMITATION, TO REFLECT CHANGES IN BORROWER'S
BAD DEBT WRITE-DOWNS, DISCOUNTS, ADVERTISING ALLOWANCES, CREDITS, OR OTHER
DILUTIVE ITEMS WITH RESPECT TO THE RECEIVABLES AND IN BORROWER'S COLLECTIONS
WITH RESPECT TO RECEIVABLES

<PAGE>   11

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
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         Other Terms. All accounting terms used in this Agreement, unless
otherwise indicated, shall have the meanings given to such terms in accordance
with generally accepted accounting principles, consistently applied. All other
terms contained in this Agreement, unless otherwise indicated, shall have the
meanings provided by the Code, to the extent such terms are defined therein.

9.       GENERAL PROVISIONS.

         9.1      INTEREST COMPUTATION. In computing interest on the
Obligations, all checks, wire transfers and other items of payment received by
Silicon (including proceeds of Receivables and payment of the Obligations in
full) shall be deemed applied by Silicon on account of the Obligations * three
Business Days after receipt by Silicon of immediately available funds, and, for
purposes of the foregoing, any such funds received after 12:00 Noon on any day
shall be deemed received on the next Business Day. Silicon shall not, however,
be required to credit Borrower's account for the amount of any item of payment
which is unsatisfactory to Silicon in its sole discretion, and Silicon may
charge Borrower's loan account for the amount of any item of payment which is
returned to Silicon unpaid.

         * TWO

         9.2      APPLICATION OF PAYMENTS. All payments with respect to the
Obligations may be applied, and in Silicon's sole discretion reversed and
re-applied, to the Obligations, in such order and manner as Silicon shall
determine in its sole discretion.

         9.3      CHARGES TO ACCOUNTS. Silicon may, in its discretion, require
that Borrower pay monetary Obligations in cash to Silicon, or charge them to
Borrower's Loan account, in which event they will bear interest at the same
rate applicable to the Loans. Silicon may also, in its discretion, charge any
monetary Obligations to Borrower's Deposit Accounts maintained with Silicon.

         9.4      MONTHLY ACCOUNTINGS. Silicon shall provide Borrower monthly
with an account of advances, charges, expenses and payments made pursuant to
this Agreement. Such account shall be deemed correct, accurate and binding on
Borrower and an account stated (except for reverses and reapplications of
payments made and corrections of errors discovered by Silicon), unless Borrower
notifies Silicon in writing to the contrary within thirty days after each
account is rendered, describing the nature of any alleged errors or admissions.

         9.5      NOTICES. All notices to be given under this Agreement shall
be in writing and shall be given either personally or by reputable private
delivery service or by regular first-class mail, or certified mail return
receipt requested, addressed to Silicon or Borrower at the addresses shown in
the heading to this Agreement, or at any other address designated in writing by
one party to the other party. Notices to Silicon shall be directed to the
Commercial Finance Division, to the attention of the Division Manager or the
Division Credit Manager. All notices shall be deemed to have been given upon
delivery in the case of notices personally delivered, or at the expiration of
one Business Day following delivery to the private delivery service, or two
Business Days following the deposit thereof in the United States mail, with
postage prepaid.

         9.6      SEVERABILITY. Should any provision of this Agreement be held
by any court of competent jurisdiction to be void or unenforceable, such defect
shall not affect the remainder of this Agreement, which shall continue in full
force and effect.

         9.7      INTEGRATION. This Agreement and such other written
agreements, documents and instruments as may be executed in connection herewith
are the final, entire and complete agreement between Borrower and Silicon and
supersede all prior and contemporaneous negotiations and oral representations
and agreements, all of which are merged and integrated in this Agreement. There
are no oral understandings, representations or agreements between the parties
which are not set forth in this Agreement or in other written agreements signed
by the parties in connection herewith.

         9.8      WAIVERS. The failure of Silicon at any time or times to
require Borrower to strictly comply with any of the provisions of this
Agreement or any other present or future agreement between Borrower and Silicon
shall not waive or diminish any right of Silicon later to demand and receive
strict compliance therewith. Any waiver of any default shall not waive or
affect any other default, whether prior or subsequent, and whether or not
similar. None of the provisions of this Agreement or any other agreement now or
in the future executed by Borrower and delivered to Silicon shall be deemed to
have been waived by any act or knowledge of Silicon or its agents or employees,
but only by a specific written waiver signed by an authorized officer of
Silicon and delivered to Borrower. Borrower waives demand, protest, notice of
protest and notice of default or dishonor, notice of payment and nonpayment,
release, compromise, settlement, extension or renewal of any commercial paper,
instrument, account, General Intangible, document or guaranty at any time held
by Silicon on which Borrower is or may in any way be liable, and notice of any
action taken by Silicon, unless expressly required by this Agreement.

         9.9      NO LIABILITY FOR ORDINARY NEGLIGENCE. Neither Silicon, nor
any of its directors, officers, employees, agents, attorneys or any other
Person affiliated with or representing Silicon shall be liable for any claims,
demands, losses or damages, of any kind whatsoever, made, claimed, incurred or
suffered by Borrower or any other party through the ordinary negligence of
Silicon, or any of its directors, officers, employees, agents, attorneys or any

<PAGE>   12

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
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other Person affiliated with or representing Silicon, but nothing herein shall
relieve Silicon from liability for its own gross negligence or willful
misconduct.

         9.10     AMENDMENT. The terms and provisions of this Agreement may not
be waived or amended, except in a writing executed by Borrower and a duly
authorized officer of Silicon.

         9.11     TIME OF ESSENCE. Time is of the essence in the performance by
Borrower of each and every obligation under this Agreement.

         9.12     ATTORNEYS FEES AND COSTS. Borrower shall reimburse Silicon
for all reasonable attorneys' fees and all filing, recording, search, title
insurance, appraisal, audit, and other reasonable costs incurred by Silicon,
pursuant to, or in connection with, or relating to this Agreement (whether or
not a lawsuit is filed), including, but not limited to, any reasonable
attorneys' fees and costs Silicon incurs in order to do the following: prepare
and negotiate this Agreement and the documents relating to this Agreement;
obtain legal advice in connection with this Agreement or Borrower; enforce, or
seek to enforce, any of its rights; prosecute actions against, or defend
actions by, Account Debtors; commence, intervene in, or defend any action or
proceeding; initiate any complaint to be relieved of the automatic stay in
bankruptcy; file or prosecute any probate claim, bankruptcy claim, third-party
claim, or other claim; examine, audit, copy, and inspect any of the Collateral
or any of Borrower's books and records; protect, obtain possession of, lease,
dispose of, or otherwise enforce Silicon's security interest in, the
Collateral; and otherwise represent Silicon in any litigation relating to
Borrower. In satisfying Borrower's obligation hereunder to reimburse Silicon
for attorneys fees, Borrower may, for convenience, issue checks directly to
Silicon's attorneys, Levy, Small & Lallas, but Borrower acknowledges and agrees
that Levy, Small & Lallas is representing only Silicon and not Borrower in
connection with this Agreement. If either Silicon or Borrower files any lawsuit
against the other predicated on a breach of this Agreement, the prevailing
party in such action shall be entitled to recover its reasonable costs and
attorneys' fees, including (but not limited to) reasonable attorneys' fees and
costs incurred in the enforcement of, execution upon or defense of any order,
decree, award or judgment. All attorneys' fees and costs to which Silicon may
be entitled pursuant to this Paragraph shall immediately become part of
Borrower's Obligations, shall be due on demand, and shall bear interest at a
rate equal to the highest interest rate applicable to any of the Obligations.

         9.13     BENEFIT OF AGREEMENT. The provisions of this Agreement shall
be binding upon and inure to the benefit of the respective successors, assigns,
heirs, beneficiaries and representatives of Borrower and Silicon; provided,
however, that Borrower may not assign or transfer any of its rights under this
Agreement without the prior written consent of Silicon, and any prohibited
assignment shall be void. No consent by Silicon to any assignment shall release
Borrower from its liability for the Obligations.

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

         9.15     LIMITATION OF ACTIONS. Any claim or cause of action by
Borrower against Silicon, its directors, officers, employees, agents,
accountants or attorneys, based upon, arising from, or relating to this Loan
Agreement, or any other present or future document or agreement, or any other
transaction contemplated hereby or thereby or relating hereto or thereto, or
any other matter, cause or thing whatsoever, occurred, done, omitted or
suffered to be done by Silicon, its directors, officers, employees, agents,
accountants or attorneys, shall be barred unless asserted by Borrower by the
commencement of an action or proceeding in a court of competent jurisdiction by
the filing of a complaint within one year after the first act, occurrence or
omission upon which such claim or cause of action, or any part thereof, is
based, and the service of a summons and complaint on an officer of Silicon, or
on any other person authorized to accept service on behalf of Silicon, within
thirty (30) days thereafter. Borrower agrees that such one-year period is a
reasonable and sufficient time for Borrower to investigate and act upon any
such claim or cause of action. The one-year period provided herein shall not be
waived, tolled, or extended except by the written consent of Silicon in its
sole discretion. This provision shall survive any termination of this Loan
Agreement or any other present or future agreement.

         9.16     PARAGRAPH HEADINGS; CONSTRUCTION. Paragraph headings are only
used in this Agreement for convenience. Borrower and Silicon acknowledge that
the headings may not describe completely the subject matter of the applicable
paragraph, and the headings shall not be used in any manner to construe, limit,
define or interpret any term or provision of this Agreement. The term
"including", whenever used in this Agreement, shall mean "including (but not
limited to)". This Agreement has been fully reviewed and negotiated between the
parties and no uncertainty or ambiguity in any term or provision of this
Agreement shall be construed strictly against Silicon or Borrower under any
rule of construction or otherwise.

         9.17     GOVERNING LAW; JURISDICTION; VENUE. This Agreement and all
acts and transactions hereunder and all rights and obligations of Silicon and
Borrower shall be governed by the laws of the State of California. As a
material part of the consideration to Silicon to enter into this Agreement,
Borrower (i) agrees that all actions and proceedings relating directly or
indirectly to this Agreement shall, at Silicon's option, be litigated in courts
located

<PAGE>   13

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
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within California, and that the exclusive venue therefor shall be Santa
Clara County; (ii) consents to the jurisdiction and venue of any such court and
consents to service of process in any such action or proceeding by personal
delivery or any other method permitted by law; and (iii) waives any and all
rights Borrower may have to object to the jurisdiction of any such court, or to
transfer or change the venue of any such action or proceeding.

         9.18     MUTUAL WAIVER OF JURY TRIAL. BORROWER AND SILICON EACH HEREBY
WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON,
ARISING OUT OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT
OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN SILICON AND BORROWER, OR ANY CONDUCT,
ACTS OR OMISSIONS OF SILICON OR BORROWER OR ANY OF THEIR DIRECTORS, OFFICERS,
EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH SILICON OR
BORROWER, IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT
OR OTHERWISE.

[Signature page immediately follows]

<PAGE>   14

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
-------------------------------------------------------------------------------

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

         BORROWER:

                  FIRSTWAVE TECHNOLOGIES, INC.

                  BY       /S/RICHARD T. BROCK
                    -------------------------------------------
                           PRESIDENT OR VICE PRESIDENT

                  BY       /S/JUDITH A. VITALE
                    -------------------------------------------
                           SECRETARY OR ASS'T SECRETARY

         SILICON:

                  SILICON VALLEY BANK

                  BY       /S/ WILLIAM YANG
                    -------------------------------------------
                  TITLE    VICE PRESIDENT

<PAGE>   15

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
-------------------------------------------------------------------------------

SILICON VALLEY BANK

                                  SCHEDULE TO

                          LOAN AND SECURITY AGREEMENT

BORROWER:         FIRSTWAVE TECHNOLOGIES, INC.
ADDRESS:          2859 PACES FERRY ROAD, SUITE 1000
                  ATLANTA, GEORGIA 30339

DATE:             DECEMBER 19, 2000

This Schedule forms an integral part of the Loan and Security Agreement between
Silicon Valley Bank and the above-borrower of even date.

===============================================================================
1.       CREDIT LIMIT
         (Section 1.1):             An amount not to exceed the lesser of: (i)
                                    $1,750,000 at any one time outstanding (the
                                    "Maximum Credit Limit"); or (ii) 80% of the
                                    amount of Borrower's Eligible Receivables
                                    (as defined in Section 8 above).

                                    Cash Management Services and Reserves.
                                    Borrower may use up to $100,000 of Loans
                                    available hereunder for Silicon's Cash
                                    Management Services (as defined below),
                                    including, merchant services, business
                                    credit card, ACH and other services
                                    identified in the cash management services
                                    agreement between Borrower and Silicon
                                    related to such service (the "Cash
                                    Management Services"). Silicon may, in its
                                    sole discretion, reserve against Loans which
                                    would otherwise be available hereunder such
                                    sums as Silicon shall determine in
                                    connection with the Cash Management
                                    Services, and Silicon may charge to
                                    Borrower's Loan account, any amounts that
                                    may become due or owing to Silicon in
                                    connection with the Cash Management
                                    Services. Borrower agrees to execute and
                                    deliver to Silicon all standard form
                                    applications and agreements of Silicon in
                                    connection with the Cash Management
                                    Services, and, without limiting any of the
                                    terms of such applications and agreements,
                                    Borrower will pay all standard fees and
                                    charges of Silicon in connection with the
                                    Cash Management Services. The Cash
                                    Management Services shall terminate on the
                                    Maturity Date.
===============================================================================
2.       INTEREST.
         INTEREST RATE
         (Section 1.2):
                                    A rate equal to the "Prime Rate" in effect
                                    from time to time, plus 1.5% per annum.
                                    Interest shall be calculated on the basis
                                    of a 360-day year for the actual number of
                                    days elapsed. "Prime Rate" means the rate
                                    announced from time to time by Silicon as
                                    its "prime rate;" it is a base rate upon
                                    which other rates charged by Silicon are
                                    based, and it is not necessarily the best
                                    rate available at Silicon. The interest
                                    rate applicable to the Obligations shall
                                    change on each date there is a change in
                                    the Prime Rate.

         MINIMUM MONTHLY
         INTEREST (Section 1.2):    N/A.
===============================================================================
3.       FEES (Section 1.4):

         Loan Fee:                  $17,500, payable concurrently herewith.

<PAGE>   16

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
-------------------------------------------------------------------------------

         Collateral Monitoring
         Fee:                       $1,000, per month, payable in arrears
                                    (prorated for any partial month at the
                                    beginning and at termination of this
                                    Agreement).

         Unused Line Fee:           In the event, in any calendar month (or
                                    portion thereof at the beginning and end of
                                    the term hereof), the average daily
                                    principal balance of the Loans outstanding
                                    during the month is less than the amount of
                                    the Maximum Credit Limit, Borrower shall
                                    pay Silicon an unused line fee in an amount
                                    equal to 0.50% per annum on the difference
                                    between the amount of the Maximum Credit
                                    Limit and the average daily principal
                                    balance of the Loans outstanding during the
                                    month, which unused line fee shall be
                                    computed and paid monthly, in arrears, on
                                    the first day of the following month.
===============================================================================
4.       MATURITY DATE
         (Section 6.1):             One year from the date of this Agreement
                                    (as the same may be extended (if at all)
                                    pursuant to this provision, the "Maturity
                                    Date"). The Maturity Date then in effect
                                    may be extended, and this Agreement may be
                                    renewed, for an additional term of one year
                                    solely if Silicon, in its sole discretion,
                                    gives Borrower written notice, not less
                                    than sixty days prior to the Maturity Date
                                    then in effect, that Silicon elects to
                                    extend such Maturity Date, and renew the
                                    term of this Agreement, for such an
                                    additional term of one year from such
                                    Maturity Date, and Borrower shall, upon
                                    each such renewal (if any), pay Silicon a
                                    renewal fee in the amount of $10,000, which
                                    shall be in addition to all interest and
                                    other sums payable to Silicon and is not
                                    refundable.
===============================================================================
5.       FINANCIAL COVENANTS
         (Section 5.1):             Borrower shall comply with each of the
                                    following covenant(s). Compliance shall be
                                    determined as of the end of each month,
                                    except as otherwise specifically provided
                                    below:

         MINIMUM TANGIBLE NET
         WORTH:                     Borrower shall maintain a Tangible Net
                                    Worth of not less than $4,000,000.

         DEFINITIONS.               For purposes of the foregoing financial
                                    covenants, the following term shall have
                                    the following meaning: "Liabilities" shall
                                    have the meaning ascribed thereto by
                                    generally accepted accounting principles.
                                    "Tangible Net Worth" shall mean the excess
                                    of total assets over total liabilities,
                                    determined in accordance with generally
                                    accepted accounting principles, with the
                                    following adjustments:
                                             (A) there shall be excluded from
                                             assets: (i) notes, accounts
                                             receivable and other obligations
                                             owing to the Borrower from its
                                             officers or other Affiliates, and
                                             (ii) all assets which would be
                                             classified as intangible assets
                                             under generally accepted
                                             accounting principles, including
                                             without limitation goodwill,
                                             licenses, patents, trademarks,
                                             trade names, copyrights,
                                             capitalized software and
                                             organizational costs, licenses and
                                             franchises
                                             (B) there shall be excluded from
                                             liabilities: all indebtedness
                                             which is subordinated to the
                                             Obligations under a subordination
                                             agreement in form specified by
                                             Silicon or by language in the
                                             instrument evidencing the
                                             indebtedness which is acceptable
                                             to Silicon in its discretion.
===============================================================================
6.       REPORTING.
         (Section 5.3):

                                    Borrower shall provide Silicon with the
                                    following:

                                    1.       Monthly Receivable agings, aged by
                                             invoice date, within fifteen days
                                             after the end of each month.

                                    2.       Monthly accounts payable agings,
                                             aged by invoice date, and
                                             outstanding or held check
                                             registers, if any, within fifteen
                                             days after the end of each month.

<PAGE>   17

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
-------------------------------------------------------------------------------

                                    3.       Monthly reconciliations of
                                             Receivable agings (aged by invoice
                                             date), transaction reports, and
                                             general ledger, within fifteen
                                             days after the end of each month.

                                    4.       Monthly perpetual inventory
                                             reports for the Inventory valued
                                             on a first-in, first-out basis at
                                             the lower of cost or market (in
                                             accordance with generally accepted
                                             accounting principles) or such
                                             other inventory reports as are
                                             reasonably requested by Silicon,
                                             all within fifteen days after the
                                             end of each month.

                                    5.       Monthly unaudited financial
                                             statements, as soon as available,
                                             and in any event within thirty
                                             days after the end of each month.

                                    6.       Monthly Compliance Certificates,
                                             within thirty days after the end
                                             of each month, in such form as
                                             Silicon shall reasonably specify,
                                             signed by the Chief Financial
                                             Officer of Borrower, certifying
                                             that as of the end of such month
                                             Borrower was in full compliance
                                             with all of the terms and
                                             conditions of this Agreement, and
                                             setting forth calculations showing
                                             compliance with the financial
                                             covenants set forth in this
                                             Agreement and such other
                                             information as Silicon shall
                                             reasonably request, including,
                                             without limitation, a statement
                                             that at the end of such month
                                             there were no held checks.

                                    7.       Quarterly unaudited financial
                                             statements, as soon as available,
                                             and in any event within forty-five
                                             days after the end of each fiscal
                                             quarter of Borrower.

                                    8.       Annual operating budgets
                                             (including income statements,
                                             balance sheets and cash flow
                                             statements, by month) for the
                                             upcoming fiscal year of Borrower
                                             within thirty days prior to the
                                             end of each fiscal year of
                                             Borrower.

                                    9.       Annual financial statements, as
                                             soon as available, and in any
                                             event within 120 days following
                                             the end of Borrower's fiscal year,
                                             certified by independent certified
                                             public accountants acceptable to
                                             Silicon.
===============================================================================
7.       COMPENSATION                        [intentionally omitted]

===============================================================================
8.       BORROWER INFORMATION:

         PRIOR NAMES OF
         BORROWER
         (Section 3.2):             See Representations and Warranties dated
                                    October 27, 2000

         PRIOR TRADE
         NAMES OF BORROWER
         (Section 3.2):             See Representations and Warranties dated
                                    October 27, 2000

         EXISTING TRADE
         NAMES OF BORROWER
         (Section 3.2):             See Representations and Warranties dated
                                    October 27, 2000

         OTHER LOCATIONS AND
         ADDRESSES (Section 3.3):   See Representations and Warranties dated
                                    October 27, 2000

         MATERIAL ADVERSE
         LITIGATION
         (Section 3.10):            None

<PAGE>   18

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
-------------------------------------------------------------------------------

===============================================================================

9.       OTHER COVENANTS
         (Section 5.1):             Borrower shall at all times comply with
                                    all of the following additional covenants:
                                    (A)      BANKING RELATIONSHIP. Borrower
                                             shall at all times maintain its
                                             primary banking relationship with
                                             Silicon.
                                    (B)      SUBORDINATION OF INSIDE DEBT. All
                                             present and future indebtedness of
                                             the Borrower to its officers,
                                             directors and shareholders
                                             ("Inside Debt") shall, at all
                                             times, be subordinated to the
                                             Obligations pursuant to a
                                             subordination agreement on
                                             Silicon's standard form. Borrower
                                             represents and warrants that there
                                             is no Inside Debt presently
                                             outstanding, except for the
                                             following: NONE. Prior to
                                             incurring any Inside Debt in the
                                             future, Borrower shall cause the
                                             person to whom such Inside Debt
                                             will be owed to execute and
                                             deliver to Silicon a subordination
                                             agreement on Silicon's standard
                                             form.
                                    (C)      PATENTS, TRADEMARKS AND
                                             COPYRIGHTS. Concurrently with the
                                             execution of this Agreement,
                                             Borrower shall execute and deliver
                                             to Silicon, on Silicon's standard
                                             form(s), any security agreement(s)
                                             and other documentation which
                                             Silicon deems necessary for filing
                                             in the United States Patent and
                                             Trademark Office, the United
                                             States Copyright Office, and any
                                             other governmental office, with
                                             respect to Borrower's copyrights,
                                             patents, trademarks and related
                                             collateral. Borrower will register
                                             with the United States Copyright
                                             Office (i) any maskworks and
                                             computer software that generates
                                             Receivables from the sale or
                                             licensing thereof or that is
                                             otherwise material to the business
                                             of Borrower (in each case, other
                                             than maskworks or computer
                                             software under development) it
                                             has, develops or acquires,
                                             including those in Exhibit A to
                                             the Intellectual Property Security
                                             Agreement, within 30 days of the
                                             date of this Agreement, and (ii)
                                             any additional maskworks and
                                             computer software rights developed
                                             or acquired, including significant
                                             revisions, additions or
                                             improvements to the maskworks or
                                             computer software or revisions,
                                             additions or improvements which
                                             significantly improve the
                                             functionality of the maskworks or
                                             computer software, after the date
                                             of this Agreement before the sale
                                             or licensing to any third party of
                                             the maskworks or computer software
                                             or any product based on or
                                             containing any maskworks or
                                             computer software, and Borrower
                                             will execute such additional
                                             security agreement(s) and other
                                             documentation which Silicon deems
                                             necessary for filing with respect
                                             to such additional registered
                                             copyright(s). Borrower will
                                             promptly notify Silicon upon
                                             Borrower's filing of any
                                             application or registration of any
                                             patent or trademark rights with
                                             the United States Patent and
                                             Trademark Office and Borrower will
                                             execute and deliver any and all
                                             instruments and documents as Bank
                                             may require to evidence or perfect
                                             Bank's security interest in such
                                             application or registration.
                                             Borrower will: (i) protect, defend
                                             and maintain the validity and
                                             enforceability of the copyrights,
                                             patents, and trademarks; (ii)
                                             promptly advise Bank in writing of
                                             material infringements of the
                                             copyrights, patents, or trademarks
                                             of which Borrower is or becomes
                                             aware; and (iii) not allow any
                                             material item of copyrights,
                                             patents, or trademarks to be
                                             abandoned, forfeited or dedicated
                                             to the public without Bank's
                                             written consent.
                                    (D)      WARRANTS. Borrower shall provide
                                             Silicon with five-year warrants to
                                             purchase the Designated Number (as
                                             defined herein) of shares of
                                             common stock of the Borrower, at a
                                             price per share equal to the
                                             Designated Price (as defined
                                             herein), on terms acceptable to
                                             Silicon, all as set forth in the
                                             Warrant to Purchase Stock (the
                                             "Warrant") and related documents
                                             (including but not limited to any
                                             Anti-Dilution Agreement or any
                                             Registration Rights Agreement as
                                             may be required by Silicon) being
                                             executed concurrently with this
                                             Agreement. Said warrants shall be
                                             deemed fully earned on the date
                                             hereof, shall be in addition to
                                             all interest and other fees, and
                                             shall be non-refundable. As used
                                             herein, the term "Designated
                                             Number" means the quotient
                                             obtained by dividing $52,500 by
                                             the Designated Price. As used
                                             herein, the term "Designated
                                             Price" means the closing price of
                                             the Shares reported for the
                                             trading day immediately before the
                                             date of this Agreement.

<PAGE>   19

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
-------------------------------------------------------------------------------

                                    (E)      STOCK PLEDGE. Borrower shall
                                             concurrently execute and deliver a
                                             Pledge Agreement to Silicon, on
                                             Silicon's standard form, granting
                                             Silicon a security interest in
                                             100% of the outstanding stock of
                                             each Subsidiary of Borrower to
                                             secure all of the Obligations, and
                                             Borrower shall cause said Pledge
                                             Agreement to continue in full
                                             force and effect at all times
                                             during the term of this Agreement
                                             with respect to 100% of the
                                             outstanding stock of each
                                             Subsidiary now outstanding or
                                             hereafter issued and 100% of all
                                             options and warrants to acquire
                                             stock of each Subsidiary hereafter
                                             issued. Borrower represents and
                                             warrants that there are no
                                             outstanding options or warrants to
                                             acquire stock of any Subsidiary.

                      [Signature page immediately follows]

<PAGE>   20

SILICON VALLEY BANK                                 LOAN AND SECURITY AGREEMENT
-------------------------------------------------------------------------------

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

Borrower:                                    Silicon:

FIRSTWAVE TECHNOLOGIES, INC.                 SILICON VALLEY BANK

By:   /s/Richard T. Brock                    By     /s/ William Yang
      President or Vice President            Title  Vice President

By     /s/Judith A. Vitale
       Secretary or Ass't Secretary

<PAGE>   21

SILICON VALLEY BANK             CERTIFIED RESOLUTION AND INCUMBENCY CERTIFICATE
-------------------------------------------------------------------------------

SILICON VALLEY BANK

CERTIFIED RESOLUTION AND INCUMBENCY CERTIFICATE

BORROWER:         FIRSTWAVE TECHNOLOGIES, INC.,
                  A CORPORATION ORGANIZED UNDER THE
                  LAWS OF THE STATE OF GEORGIA
DATE:             DECEMBER 19, 2000

I, the undersigned, Secretary or Assistant Secretary of the above-named
borrower, a corporation organized under the laws of the state set forth above,
do hereby certify that the following is a full, true and correct copy of
resolutions duly and regularly adopted by the Board of Directors of said
corporation as required by law, and by the by-laws of said corporation, and
that said resolutions are still in full force and effect and have not been in
any way modified, repealed, rescinded, amended or revoked.

     RESOLVED, that this corporation borrow from Silicon Valley Bank
     ("Silicon"), from time to time, such sum or sums of money as, in the
     judgment of the officer or officers hereinafter authorized hereby, this
     corporation may require.

     RESOLVED FURTHER, that any officer of this corporation be, and he or she
     is hereby authorized, directed and empowered, in the name of this
     corporation, to execute and deliver to Silicon, and Silicon is requested
     to accept, the loan agreements, security agreements, notes, financing
     statements, and other documents and instruments providing for such loans
     and evidencing and/or securing such loans, with interest thereon, and said
     authorized officers are authorized from time to time to execute renewals,
     extensions and/or amendments of said loan agreements, security agreements,
     and other documents and instruments.

     RESOLVED FURTHER, that said authorized officers be and they are hereby
     authorized, directed and empowered, as security for any and all
     indebtedness of this corporation to Silicon, whether arising pursuant to
     this resolution or otherwise, to grant, transfer, pledge, mortgage,
     assign, or otherwise hypothecate to Silicon, or deed in trust for its
     benefit, any property of any and every kind, belonging to this
     corporation, including, but not limited to, any and all real property,
     accounts, inventory, equipment, general intangibles, instruments,
     documents, chattel paper, notes, money, deposit accounts, furniture,
     fixtures, goods, and other property of every kind, and to execute and
     deliver to Silicon any and all grants, transfers, trust receipts, loan or
     credit agreements, pledge agreements, mortgages, deeds of trust, financing
     statements, security agreements and other hypothecation agreements, which
     said instruments and the note or notes and other instruments referred to
     in the preceding paragraph may contain such provisions, covenants,
     recitals and agreements as Silicon may require and said authorized
     officers may approve, and the execution thereof by said authorized
     officers shall be conclusive evidence of such approval.

     RESOLVED FURTHER, that, in connection with the foregoing loans, this
     corporation shall issue to Silicon five-year warrants to purchase the
     Designated Number (as defined below) of shares of common stock of this
     corporation, at a price per share equal to the Designated Price (as
     defined below), on the terms and provisions of Silicon's standard form
     Warrant to Purchase Stock and related documents, with such changes therein
     as Silicon and this corporation shall agree; any officer of this
     corporation is hereby authorized to execute and deliver such Warrant to
     Purchase Stock and related documents, and all documents and instruments
     relating thereto, in such form and containing such additional provisions
     as said authorized officers may approve, and the execution thereof by said
     authorized officers shall be conclusive evidence of such approval. As used
     herein, the term "Designated Number" means the quotient obtained by
     dividing $52,500 by the Designated Price. As used herein, the term
     "Designated Price" means the closing price of the Shares reported for the
     trading day immediately before the date of the Loan and Security Agreement
     being entered into by this corporation and Silicon on or about the date
     such warrants are issued.

<PAGE>   22

SILICON VALLEY BANK             CERTIFIED RESOLUTION AND INCUMBENCY CERTIFICATE
-------------------------------------------------------------------------------

     RESOLVED FURTHER, that Silicon may conclusively rely upon a certified copy
     of these resolutions and a certificate of the Secretary or Ass't Secretary
     of this corporation as to the officers of this corporation and their
     offices and signatures, and continue to conclusively rely on such
     certified copy of these resolutions and said certificate for all past,
     present and future transactions until written notice of any change hereto
     or thereto is given to Silicon by this corporation by certified mail,
     return receipt requested.

<PAGE>   23
SILICON VALLEY BANK             CERTIFIED RESOLUTION AND INCUMBENCY CERTIFICATE
________________________________________________________________________________

         The undersigned further hereby certifies that the following persons are
the duly elected and acting officers of the corporation named above as borrower
and that the following are their actual signatures:

<TABLE>
<CAPTION>
   NAMES                                    OFFICE(S)                                   ACTUAL SIGNATURES
   -----                                    ---------                                   -----------------

   <S>                                      <C>                                         <C>
   Richard T. Brock                         President & CEO                             X /s/Richard T. Brock

   Judith A. Vitale                         Vice President & Secretary                  X /s/ Judith A. Vitale

   ______________________________           _________________________________           X___________________________

   ______________________________           _________________________________           X___________________________
</TABLE>

         IN WITNESS WHEREOF, I have hereunto set my hand as such Secretary or
Assistant Secretary on the date set forth above.

                                             /s/Judith A. Vitale
                                             Secretary or Assistant Secretary

<PAGE>   24

                              SILICON VALLEY BANK

                          NOTICE OF SECURITY INTEREST

                               December 19, 2000

Certified Mail, Return Receipt Requested

DB ALEX BROWN
210 W. Pennsylvania Ave., Ste. 260
Towson, MD 21204

         Re:  FIRSTWAVE TECHNOLOGIES, INC.

Ladies and Gentlemen:

         Notice is hereby given that your above-named customer has granted a
security interest in all of its present and future deposit accounts maintained
with your institution, general and special, and of every other kind, to Silicon
Valley Bank, 3003 Tasman Drive, Santa Clara, California 95054.

         Please contact the undersigned at 404-760-3689, if you have any
questions about this matter.

                                                 Sincerely yours,

                                                 Silicon Valley Bank

                                                 By /s/ William Yang
                                                 Title Vice President

                                                 FirstWave Technologies, Inc.

                                                 By /s/Richard T. Brock
                                                 Title President

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