Document:

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THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD OR OFFERED FOR SALE
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER
SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR THE AVAILABILITY OF AN
EXEMPTION FROM REGISTRATION UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES
LAWS.
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                       FUNDING AND SUBSCRIPTION AGREEMENT
                            TO PURCHASE COMMON STOCK
                                       OF
                            ORION TECHNOLOGIES, INC.
                             (A NEVADA CORPORATION)

         THIS FUNDING AND SUBSCRIPTION AGREEMENT ("Agreement") is made as of May
5, 2000, by and between OIF OPTIMUM INVESTMENT FINANCE AG, a Swiss Company
("OIF"), and ORION TECHNOLOGIES, INC, a Nevada corporation ("ORION").

                                   WITNESSETH

         WHEREAS, ORION desires to continue to expand its operations through the
development of its existing subsidiaries, as well as through the acquisition of
additional established companies within the telecommunications and electronic
commerce industries.

         WHEREAS, ORION has offered to sell, and OIF desires to acquire, up to
1,000,000 shares (the "Shares") of ORION's common stock, par value $.001 (the
"Common Stock") at a purchase price of $4.50 per share, subject to adjustment as
set forth in this Agreement.

         WHEREAS, ORION and OIF desire to document and implement their
understanding in accordance with the terms of this Agreement.

         NOW, THEREFORE, in consideration of the mutual undertakings herein and
other good and valuable consideration, the sufficiency of which is hereby
acknowledged, the parties hereto do hereby agree as follows:

         SECTION 1.        Purchase and Sale of Shares. ORION hereby agrees to
sell to OIF and OIF hereby agrees to purchase the Shares, in the installments
and on the terms and conditions described herein. To effectuate the purchase of
Shares, OIF shall make available the applicable purchase price described in
Sections 2 and 3 below ("Purchase Price"), in an account designated by ORION.
Upon receipt of the Purchase Price, ORION will instruct its transfer agent to
issue and deliver a certificate representing the corresponding number of Shares
to OIF or its nominee.

         SECTION 2.        Quarterly Funding. OIF has committed to provide ORION
with the working capital and operating funds necessary for the continued
operations of ORION and its subsidiaries during the twelve month period
commencing on May 1, 2000. OIF hereby agrees to pay $US 750,000 ("Quarterly
Funding") to ORION on each of the following quarterly dates: May 15, 2000,
August 15, 2000, November 15, 2000, and February 15, 2001. Upon receipt of each
Quarterly Funding payment, ORION will instruct its transfer agent to issue
166,667 Shares of Common Stock, at a rate equal to the "Per Share Price" as
determined by Orion's Board of

<PAGE>   2

Directors. ORION's Board of Directors will determine the "Per Share Price" after
consultation with OIF, and consideration of such factors as the current price
and trading volume of the Common Stock on the OTC Bulletin Board, and the
availability of other sources of financing. Notwithstanding the immediately
preceding sentence to the contrary, in no event will the "Per Share Price" be
less than $US 4.00.

         SECTION 3.        Additional Funding. In addition to the Quarterly
Funding defined above, OIF agrees to provide additional funds ("Acquisition
Funding") necessary for the expansion of ORION's operations through those
acquisitions, mergers or strategic partnerships approved by ORION's Board of
Directors during the twelve month period commencing on May 1, 2000. As
consideration for such Acquisition Funding, ORION will provide OIF with Shares,
up to the total Shares purchasable under this Agreement, at a rate equal to the
"Per Share Price" determined by ORION's Board of Directors. OIF will not be
obligated to provide Acquisition Funding in excess of $1,500,000 in the
aggregate.

         SECTION 4.        OIF Representations and Warranties. OIF hereby
acknowledges, represents and warrants to, and agrees with, ORION as follows:

                  (a)      Offshore Transaction; Offering Restrictions; Resale
Restrictions.

                           (i)      OIF is not, and at the time the offer to
         purchase the Shares was made to OIF was not, a "U.S. person"*/ as that
         term is defined under Regulation S ("Regulation S") of the Securities
         Act of 1933, as amended (the "Securities Act").

                           (ii)     OIF is outside of the United States* as of
         the date of the execution and delivery of this Subscription Agreement.

                           (iii)    No resale of any of the Shares subscribed
         for under this Agreement has been pre-arranged with a purchaser in the
         United States.

                           (iv)     OIF is not a Distributor* and is not
         purchasing Common Stock with the intent of distributing the Shares on
         behalf of ORION or a Distributor or any of their affiliates.

                           (v)      OIF is purchasing the Shares for its own
         account (and/or for the account of other non-U.S. Persons who are
         outside of the United States) and not for the account or benefit of any
         U.S. Person.

                           (vi)     OIF hereby covenants and agrees to resell
         any of the Shares only in accordance with the provisions of Regulation
         S, pursuant to registration of the Shares under the Securities Act or
         pursuant to an available exemption from registration under the
         Securities Act.

                           (vii)    The certificates representing the Shares
         will bear a legend substantially as follows:

--------
* See Appendix A attached hereto for definitions of "U.S. person", "distributor"
and "United States" under Regulation S.

                                       2
<PAGE>   3

              THE SHARES OF COMMON STOCK REPRESENTED HEREBY HAVE NOT BEEN
              REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
              AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE OFFERED OR SOLD
              EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE
              SECURITIES ACT, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT
              OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION; HEDGING
              TRANSACTIONS INVOLVING THE COMMON STOCK MAY NOT BE CONDUCTED
              UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. THE ISSUER WILL
              REFUSE TO REGISTER ANY TRANSFER OF SUCH SECURITIES NOT MADE IN
              ACCORDANCE WITH THE PROVISIONS OF REGULATION S AND MAY REQUIRE, AS
              A CONDITION TO ANY REGISTRATION OF TRANSFER, AN OPINION OF
              COUNSEL, A CERTIFICATE OR SUCH OTHER EVIDENCE AS MAY BE
              SATISFACTORY TO THE ISSUER TO THE EFFECT THAT THE TRANSFER HAS
              BEEN MADE IN ACCORDANCE WITH REGULATION S PROMULGATED UNDER THE
              SECURITIES ACT.

                           (viii)   Prior to reselling any of the Shares during
         the Restricted Period (as defined below), OIF will send a notice to the
         potential purchaser that such potential purchaser may be subject to the
         restrictions of Regulation S during the Restricted Period. For purposes
         of this Subscription Agreement, the "Restricted Period" means a period
         that commences on the later of the date upon which the Shares were
         first offered to persons other than Distributors in reliance upon
         Regulation S or the date of which the related Purchase Price is
         received by ORION and expires one year thereafter.

                           (ix)     Neither OIF nor any entity controlled by it
         has a short position in the Common Stock nor will have a short position
         in the Common Stock at any time prior to the expiration of the
         Restricted Period.

                           (x)      The purchase of the Shares by OIF is not a
         transaction that is part of any plan or scheme to evade the
         registration provisions of the Securities Act.

                  (b)      OIF Awareness.

                           (i)      OIF has the financial ability to bear the
         economic risk of its investment in the Shares (including its possible
         loss) and has no need for liquidity with respect to its investment in
         the Shares.

                           (ii)     OIF has such knowledge and experience in
         financial and business matters so as to be capable of evaluating the
         merits and risks of an investment in the Shares and has obtained, in
         its judgment, sufficient information from ORION to evaluate the merits
         and risks of an investment in the Shares.

                           (iii)    OIF and each person for whose account it is
         purchasing Shares is an "Accredited Investor" as that term is defined
         in Rule 501(a) promulgated under Regulation D of the Securities Act,
         which definition is set forth in Appendix A.

                                       3
<PAGE>   4

                           (iv)     The Shares are not being subscribed for by
         OIF as a result of any material information about ORION's affairs that
         has not been publicly disclosed.

                           (v)      OIF has been provided an opportunity to
         obtain any additional information concerning ORION and the Common
         Stock, and all other information to the extent ORION possesses such
         information or can acquire it without unreasonable effort or expense
         and specifically acknowledges its awareness of the latest press
         releases made by ORION and ORION's proxy statement for its 1999 annual
         meeting of stockholders, a copy of which was provided to OIF.

                           (vi)     OIF has been given the opportunity to ask
         questions of, and receive answers from the Management of ORION, and has
         been given the opportunity to obtain such additional information
         necessary to verify the accuracy of the information which was otherwise
         provided in order for it to evaluate the merits and risks of an
         investment in the Shares to the extent ORION possesses such information
         or can acquire it without unreasonable effort or expense.

                           (vii)    OIF has determined that an investment in the
         Shares is a suitable investment for it and that at its time it could
         bear a complete loss of its investment.

                           (viii)   In making its decision to purchase the
         Shares herein subscribed for, OIF has relied solely upon independent
         investigations made by it. OIF is not relying on ORION with respect to
         tax and other economic considerations involved in its investment.

                           (ix)     OIF further understands that ORION is under
         no obligation to register the Shares on its behalf or to assist it in
         complying with any exemption from such registration under the
         Securities Act. OIF also understands that sales or transfers of the
         Shares, or any part thereof, may be further restricted by provisions of
         the applicable state securities laws.

                           (x)      Pursuant to Paragraph 3.1(e) and Rule
         903(c)(3)(iii)(B)(4) under the Securities Act, OIF acknowledges and
         agrees that ORION has agreed for the benefit of all holders of the
         Shares that it will refuse to register any transfer of the Shares not
         made in accordance with the provisions of Regulation S.

                           (xi)     OIF understands that ORION will not be
         registered as an investment adviser under the Investment Advisers Act
         of 1940, and ORION will not be registered as an investment company
         under the Investment Company Act of 1940 or as a "dealer" under the
         Securities Exchange Act of 1934, in reliance upon the availability of
         exemptions from the registration provisions of such statutes.

                           (xii)    OIF acknowledges that (i) ORION has no
         significant financial and operating history; (ii) no federal or state
         agency has passed upon the Shares or made any findings or determination
         as to the fairness of its investment; (iii) an investment in ORION is
         an illiquid investment and OIF must bear the economic risk of its
         investment for an indefinite period of time; (iv) the management of
         ORION may be indemnified against liabilities sustained by it by reason
         of its serving as the management of ORION; (v) ORION has not yet
         recorded revenues; (vi) ORION does not have publicly available current
         financial

                                       4
<PAGE>   5

         information; and (vii) ORION does not now have the officers and
         directors or other management necessary to ensure the success of ORION.

                           (xiii)   OIF acknowledges that holders of the Shares
         will have no right to participate in management of ORION or in the
         conduct of its business. In addition, ORION may continue to offer
         additional Shares for sale without the consent of the holders of the
         Shares.

                           (xiv)    OIF acknowledges that once signed, this
         Agreement is irrevocable by OIF and constitutes a binding agreement
         enforceable against OIF.

                  (c)      Reliance. The representations, warranties,
agreements, undertakings and acknowledgments made by OIF in this Agreement are
made with the intent that they be relied upon by ORION and its management in
determining OIF's suitability as a purchaser of the Shares. In addition, OIF
undertakes to notify ORION immediately of any change in any representation,
warranty or other information relating to OIF set forth herein. ORION is
entitled to rely on the representations made by OIF now and after the Shares are
issued.

         SECTION 5.        Representations and Warranties of ORION. ORION hereby
acknowledges, represents and warrants to, and agrees with, OIF as follows:

                  (a)      The Shares when purchased by OIF and upon receipt of
the Additional Capital for such Shares by ORION shall be validly issued, fully
paid and non-assessable.

                  (b)      ORION is not a reporting issuer as defined by Rule
902 of Regulation S.

                  (c)      Offshore Transaction.

                           (i)      ORION has not offered the Shares to any
         person in the United States or to any U.S. person as that term is
         defined in Regulation S.

                           (ii)     ORION has no reason to believe that the
         purchase of any Shares has been prearranged with a purchaser in the
         United States.

                  (d)      In connection with the offering of the Shares, ORION
has not engaged in any "directed selling efforts" (as that term is defined in
Regulation S) nor has ORION conducted any general solicitation relating to the
offering of the Shares to persons residing within the United States or to U.S.
persons.

                  (e)      Pursuant to Rule 903(c)(3)(iii)(B)(4) under the
Securities Act, ORION hereby agrees for the benefit of all holders of the Shares
that it will refuse to register any transfer of the Shares not made in
accordance with the provisions of Regulation S and this Subscription Agreement.

         SECTION 6.        Indemnity. OIF and ORION each hereby agrees to
indemnify and hold harmless the other and its respective officers, directors and
agents and each other person, if any, who controls or is controlled by any
thereof, within the meaning of Section 15 of the Securities Act, against any and
all loss, liability, claim, damage and expense whatsoever (including, but not
limited

                                       5
<PAGE>   6

to, any and all expenses whatsoever reasonably incurred in investigating,
preparing or defending against any litigation commenced or threatened or any
claim whatsoever) arising out of or based upon any false representation or
warranty or breach or failure by the indemnifying party herein or in any other
document furnished in connection with this transaction by the indemnifying party
to the other party or any of it officers, directors, agents or controlling
person.

         SECTION 7.        Miscellaneous.

                  (a)      Modification. Neither this Agreement nor any
provision hereof shall be modified, discharged or terminated except by an
instrument in writing signed by the party against whom any waiver, change,
discharge or termination is sought.

                  (b)      Notices. Any notice, demand or other communication
which any party hereto may be required, or may elect, to give to anyone
interested hereunder shall be sufficiently given if (a) delivered by a
recognized national courier service to such address as may be given herein or
(b) delivered personally at such address.

                  (c)      Binding Effect. Except as otherwise provided herein,
this Agreement shall be binding upon and inure to the benefit of the parties and
their heirs, executors, administrators, successors, legal representatives and
permitted assigns.

                  (d)      Entire Agreement. This Agreement contains the entire
agreement of the parties with respect to the subject matter hereof and
supersedes and prior subscription agreement signed by OIF, and there are no
representations, covenants or other agreements except as stated or referred to
herein.

                  (e)      Assignability. This Agreement is not transferable or
assignable by either party.

                  (f)      Applicable Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Nevada applicable to
contracts made and to be performed entirely within such state.

                  (g)      Counterparts; Fax Execution. This Agreement may be
executed through the use of separate signature pages or in any number of
counterparts, and each of such counterparts shall, for all purposes, constitute
one agreement binding on all the parties, notwithstanding that all parties are
not signatories to the same counterpart. This Agreement may be signed by fax
delivery of a signed signature page to the other party and such fax execution
shall be valid in all respects.

                         [Signatures on following page]

                                       6
<PAGE>   7

         IN WITNESS WHEREOF, the parties have executed this Agreement on the
dates set forth below.

OIF Investment Finance AG                        Orion Technologies, Inc.

By:    /s/                                       By:     /s/
    ----------------------------                      -------------------------
    Bernd Stieghorst                                  A. Frans Heideman
    Manager                                           President

Date:                                            Date:
     ---------------------------                      -------------------------

Address for Notices:                             Address for Notices:

Rennweg 29                                       1800 Diagonal Road
CH-8001 Zurich                                   Suite 500
Switzerland                                      Alexandria, Virginia  22314
Attention: Bernd Stieghorst                      Attention: A. Frans Heideman

Share Issuance/Delivery Instructions:

Register Shares in name of:

OIF Optimum Investment Finance AG (unless alternative issuance instructions are
separately provided by OIF Optimum Investment Finance AG with respect to any
client of OIF)

Deliver Share Certificate(s) to:

OIF Optimum Investment Finance AG
Rennweg 29
CH-8001 Zurich
Switzerland
Attention:  Bernd Stieghorst

                                       7
<PAGE>   8

                                   APPENDIX A

                               CERTAIN DEFINITIONS

         A.       "ACCREDITED INVESTOR" - Effective April 19, 1989, the
following are "Accredited Investors" within the meaning of Rule 501(a) of
Regulation D under the Securities Act of 1933 (the "Securities Act"):

                  1.       An individual whose net worth, together with that of
its spouse, exceeds $1,000,000.

                  2.       An individual who had individual income in excess of
$200,000 in each of the two most recent years or joint income with that
individual's spouse in excess of $300,000 in each of those years and who
reasonably expects to reach the same income level its year.

                  3.       A bank as defined in Section 3(a)(2) of the
Securities Act, or a savings and loan association or other institution as
defined in Section 3(a)(5)(A) of the Securities Act whether acting in its
individual capacity or fiduciary capacity.

                  4.       A broker or dealer registered pursuant to Section 15
of the Securities Exchange Act of 1934.

                  5.       An insurance company as defined in Section 2(13) of
the Securities Act.

                  6.       An investment company registered under the Investment
Company Act of 1940 or a business development company as defined in Section
2(a)(48) of that Act.

                  7.       A Small Business Investment Company licensed by the
U.S. Small Business Administration under Section 301(c) or (d) of the Small
Business Investment Act of 1958.

                  8.       An employee benefit plan within the meaning of Title
I of the Employee Retirement Income Security Act of 1974, if:

                  a.       the decision to invest in the entity is made by a
                           plan fiduciary, as defined in Section 3(21) of such
                           Act, which is either a bank, savings and loan
                           association, insurance company, or registered
                           investment adviser, or

                  b.       the plan has total assets in excess of $5,000,000, or

                  c.       the plan is a self-directed plan with investment
                           decisions made solely by persons who are Accredited
                           Investors.

                                       8
<PAGE>   9

                  9.       A private business development company as defined in
Section 202(a)(22) of the Investment Advisers Act of 1940.

                  10.      A charitable organization described in Section
501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar
business trust or partnership, not formed with the specific purpose of acquiring
the securities, with total assets in excess of $5,000,000.

                  11.      A trust, with total assets in excess of $5,000,000,
not formed for the specific purpose of acquiring the securities, whose purchase
is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of the
Securities Act.

                  12.      Any director, executive officer or general partner of
the issuer of the securities being offered or sold, or any director, executive
officer or general partner of a general partner of that issuer.

                  13.      A plan established and maintained by a state, its
political subdivisions or any agency or instrumentality of a state or its
political subdivisions for the benefit of its employees with total assets in
excess of $5,000,000.

                  14.      An entity in which all of the equity owners are
Accredited Investors.

         B.       "DISTRIBUTOR" means any underwriter, dealer or other person
who participates, pursuant to a contractual agreement, in the distribution of
the securities offered or sold in reliance on Regulation S of the Securities Act
of 1933, as amended.

         C.       "U.S. PERSON" means:

                           (i)      Any natural person resident in the United
                                    States;

                           (ii)     Any partnership or corporation organized or
                                    incorporated under the laws of the United
                                    States;

                           (iii)    Any estate of which any executor or
                                    administrator is a U.S. person;

                           (iv)     Any trust of which any trustee is a U.S.
                                    person;

                           (v)      Any agency or branch of a foreign entity
                                    located in the United States;

                           (vi)     Any non-discretionary account or similar
                                    account (other than an estate or trust) held
                                    by a dealer or other fiduciary organized,
                                    incorporated or an individual resident in
                                    the United States for the benefit or account
                                    of a U.S. person;

                           (vii)    Any discretionary account or similar account
                                    (other than an estate or trust) held by a
                                    dealer or other fiduciary organized,
                                    incorporated or (if an individual) resident
                                    in the United States; and

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<PAGE>   10

                           (viii)   Any partnership or corporation if: (a)
                                    organized or incorporated under the laws of
                                    any foreign jurisdiction; and (b) formed by
                                    a U.S. person principally for the purpose of
                                    investing in securities not registered under
                                    the Act, unless it is organized or
                                    incorporated, and owned, by Accredited
                                    Investors (as defined in Rule 501(a)) who
                                    are not natural persons, estates or trusts.

                           (ix)     Any discretionary account or similar account
                                    (other than an estate or trust) held for the
                                    benefit or account of a non-U.S. person by a
                                    dealer or other professional fiduciary
                                    organized, incorporated, or (if an
                                    individual) resident in the Untied States
                                    shall not be deemed a "U.S. person."

                           (x)      Any estate of which any professional
                                    fiduciary acting as executor or
                                    administrator is a U.S. person shall not be
                                    deemed a U.S. person if:

                                    (i)     An executor or administrator of the
                                    estate who is not a U.S. person has sole or
                                    shared investment discretion with respect to
                                    the assets of the estate; and

                                    (ii)    The estate is governed by foreign
                                    law.

                           (xi)     Any trust of which any professional
                                    fiduciary acting as trustee is a U.S. person
                                    shall not be deemed a U.S. person if a
                                    trustee who is not a U.S. person has sole or
                                    shared investment discretion with respect to
                                    the trust assets, and no beneficiary of the
                                    trust (and no settlor if the trust is
                                    revocable) is a U.S. person.

                           (xii)    An employee benefit plan established and
                                    administered in accordance with the law of a
                                    country other than the United States and
                                    customary practice and documentation of such
                                    country shall not be deemed a U.S. person.

                           (xiii).  Any agency or branch of a U.S. person
                                    located outside the United States shall not
                                    be deemed a "U.S. person" if:

                                    (iii)   The agency or branch operates for
                                    valid business reasons; and

                                    (iv)    The agency or branch is engaged in
                                    the business of insurance or banking and is
                                    subject to substantive insurance or banking
                                    regulation, respectively, in the
                                    jurisdiction where located.

                           (xiv)    The International Monetary Fund, the
                                    International Bank for Reconstruction and
                                    Development, the Inter-American Development
                                    Bank, the Asian Development Bank, the
                                    African Development Bank, the United
                                    Nations, and their agencies, affiliates and
                                    pension

                                       10
<PAGE>   11

                                    plans, and any other similar international
                                    organizations, their agencies, affiliates
                                    and pension plans shall not be deemed "U.S.
                                    persons."

         D.       "UNITED STATES" means the United States of America, its
territories and possessions, any state of the United States, and the District of
Columbia.

                                       11<PAGE>   1

                                                                    Exhibit 10.9

                      THIRD AMENDMENT TO SECOND AMENDED AND
                      -------------------------------------
                             RESTATED LOAN AGREEMENT
                             -----------------------

     THIS THIRD AMENDMENT TO LOAN AGREEMENT is made as of this __ day of
October, 1999, by and between STORAGE COMPUTER CORPORATION, a Delaware
corporation (the "Borrower") and CITIZENS BANK OF MASSACHUSETTS (successor in
interest to State Street Bank and Trust Company), a Massachusetts chartered
trust company (hereinafter referred to as the "Bank").

     WHEREAS, the Borrower and the Bank are parties to a Second Amended and
Restated Loan Agreement dated as of November 16, 1998 as amended by the First
Amendment to Second Amended and Restated Loan Agreement dated as of April 30,
1998 and Second Amendment to Second Amended and Restated Loan Agreement dated as
of July 1, 1999 (collectively, the "Loan Agreement"). Capitalized terms used
herein and not otherwise defined shall have the meanings set forth in the Loan
Agreement.

     NOW, THEREFORE, in consideration of these premises and for other good and
valuable consideration the receipt and sufficiency of which are hereby
acknowledged, the parties hereby amend the Loan Agreement as follows:

     Section
AMENDMENT OF SECTION 1.01. Section 1.01 of the Loan Agreement is hereby amended
as follows:

                    (a)  the definition of "Line of Credit" contained in Section
                         1.01 of the Loan Agreement is amended by deleting the
                         reference to "Eight Million Seven Hundred Thousand
                         Dollars ($8,700,000)" and replacing it with "Seven
                         Million Four Hundred Thousand Dollars ($7,400,000)".

                    (b)  the definition of "Maturity Date" contained in Section
                         1.01 of the Loan Agreement is hereby amended by
                         deleting the reference to "January 4, 2000" and
                         replacing it with the following: "the following,
                         whichever is applicable: (i) January 4, 2000, (ii)
                         Sixth Month Extension Date, to the extent the Borrower
                         has complied with Section 2.11(A), or (iii) One Year
                         Extension Date, to the extent the Borrower has complied
                         with Section 2.11(B)"

                    (c)  the definition of "Maximum Line Availability" contained
                         in Section 1.01 of the Loan Agreement is deleted in its
                         entirety and

1
<PAGE>   2

                         replaced with the following:

                         "Maximum Line Availability" shall mean the line of
                         credit made available to the Borrower under this
                         Agreement (subject to the proviso at the end of this
                         definition) in the maximum principal amounts during the
                         following periods indicated:

<TABLE>
<CAPTION>
                           Period                                       Maximum Line Availability
                           ------                                       -------------------------

<S>                                                                     <C>
                  October 1, 1999 through January 2, 2000                       $7,400,000

                  January 3, 2000 up to the Maturity Date                       $6,800,000

                  Maturity Date                                                         0
</TABLE>

                    PROVIDED, HOWEVER, (i) the Maximum Line Availability shall
                    be permanently reduced to $5,995,000 or $4,250,000
                    respectively, to the extent the Borrower has complied with
                    Sections 2.11(A) or 2.11(B) hereof and (ii) the Maximum Line
                    Availability shall be permanently reduced by any proceeds
                    received by the Borrower or Bank pursuant to Sections
                    2.01(g) or 5.16 hereof.

                    (d)  the definition of "Loan Documents" contained in Section
                         1.01 of the Loan Agreement is hereby amended by adding
                         "Warrants", after the term "Pledge Agreement" in the
                         fifth line.

                    (e)  the definition of "Note" contained in Section 1.01 of
                         the Loan Agreement is deleted in its entirety and
                         replaced with the following:

                         "Note" shall mean the secured Fourth Amended and
                         Restated Line of Credit Note in the maximum principal
                         amount of $7,400,000 dated October __, 1999 issued by
                         the Borrower to the Bank in form of Exhibit A hereto,
                         and all extensions, renewals, modifications,
                         substitutions, replacements and restatements thereof.

                    (f)  the following definitions shall be added to Section
                         1.01 of the Loan Agreement in the appropriate
                         alphabetical order:

                         "Extension Warrant" shall mean the Warrant attached
                         hereto as EXHIBIT H.

                         "Initial Warrant" shall mean the Warrant attached
                         hereto as EXHIBIT G.

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<PAGE>   3

                         "One Year Extension Date" shall have the meaning set
                         forth in Section 2.11(B).

                         "Sixth Month Extension Date" shall have the meaning set
                         forth in Section 2.11(A).

                         "Warrants" shall mean the Initial Warrant and Extension
                         Warrant.

                         "Working Capital" shall mean current assets (excluding
                         accounts or notes receivable from affiliates) of the
                         Borrower and its Subsidiaries less current liabilities
                         of the Borrower and its Subsidiaries, all as determined
                         on a consolidated basis in accordance with generally
                         accepted accounting principles in the United States of
                         America in effect from time to time.

1.        Section AMENDMENT OF ARTICLE II. Article II of the Loan Agreement
               is hereby amended as follows:

                    (a)  The last sentence of Section 2.01(g)(iii) of the Loan
                         Agreement is deleted in its entirety and replaced with
                         the following:

                              Within one Business Day after the receipt of Net
                              Equity Proceeds by the Borrower or any of its
                              Subsidiaries, the Borrower shall make a prepayment
                              of the Loan (to be applied as a permanent
                              reduction of the Maximum Line Availability) in an
                              amount equal to the sum of (i) 100% of all Net
                              Equity Proceeds that are received by the Borrower
                              or any of its Subsidiaries after the date hereof
                              and that are in excess of $1,405,000 but less than
                              $4,500,000, plus (ii) 50% of all Net Equity
                              Proceeds that are received by the Borrower or any
                              of its Subsidiaries after the date hereof and that
                              are in excess of $4,499,999. It is understood by
                              the parties hereto that all Net Equity Proceeds
                              that are received by the Borrower or any of its
                              Subsidiaries after the date hereof, and that the
                              Borrower is not required to prepay to the Bank, as
                              provided in the immediately preceding sentence of
                              this Section 2.01(g)(iii), may be retained and
                              used by the Borrower and/or its Subsidiaries as
                              working capital.

                    (b)  Section 2.10 of the Loan Agreement is deleted in its
                         entirety and replaced with the following Sections 2.10,
                         2.11 and 2.12.

          SECTION 2.10. WAIVER AND RESTRUCTURE FEE. The Borrower shall pay the
     Bank a $170,000 Waiver and Restructure Fee. Such fee has been earned as of
     this date and

3
<PAGE>   4

     shall be payable as follows: (i) $20,000 to be paid on July 1, 1999 and
     (ii) the balance of $150,000 (the "Deferred Fee") shall be payable on the
     Maturity Date as the same may be extended from time to time, as provided in
     Section 2.11, provided, however, that $25,000 of the Deferred Fee shall be
     waived if the Bank is paid $125,000 of such Deferred Fee prior to December
     1, 1999. Notwithstanding the foregoing, the entire Deferred Fee (I.E.,
     $150,000) shall be immediately due and payable without notice upon the
     occurrence of an Event of Default.

          SECTION 2.11. MATURITY DATE EXTENSION.

          (A) To the extent that on or before December 15, 1999, (i) the
     Borrower delivers a written request to the Bank to extend the Maturity
     Date, (ii) the Borrower is in compliance with all terms and conditions of
     the Loan Documents on the date of such request, (iii) the Borrower delivers
     to the Bank a certificate satisfactory to the Bank certifying such
     compliance and (iv) the Maximum Line of Availability has been permanently
     paid down and reduced to less than $5,995,000, the Maturity Date shall be
     extended to June 30, 2000 (the "Sixth Month Extension Date"), as provided
     for in the definition of "Maturity Date".

          (B) To the extent that on or before December 15, 1999, (i) the
     Borrower delivers a written request to the Bank to extend the Maturity
     Date, (ii) the Borrower is in compliance with all terms and conditions of
     the Loan Documents on the date of such request, (iii) the Borrower delivers
     to the Bank a certificate satisfactory to the Bank certifying such
     compliance and (iv) the Maximum Line of Availability has been permanently
     paid down and reduced to less than $4,250,000, the Maturity Date shall be
     extended to January 5, 2001 (the "One Year Extension Date"), as provided
     for in the definition of "Maturity Date".

          SECTION 2.12. WARRANTS. On or before October __, 1999, the Borrower
     agrees to execute and deliver to the Bank, or its nominee, the Warrants.

     Section 3.     AFFIRMATIVE COVENANTS. Article V of the Loan Agreement is
                    hereby amended by deleting Sections 5.15 and 5.16 in their
                    entirety and replacing them with the following:

          SECTION 5.15 [ INTENTIONALLY LEFT BLANK ]

          SECTION 5.16. ADDITIONAL CAPITAL OR COMPANY SALE. In the event the
     Maturity Date is not extended pursuant to Sections 2.11(A) or 2.11(B), on
     or before December 16, 1999, the Borrower will provide evidence
     satisfactory to the Bank that the Borrower (either through an asset sale or
     stock sale) will be sold on or before January 4, 2004, and that such sale
     will generate sufficient net proceeds to pay off the Obligations in full.
     (i) On or before March 31, 2000 (in the event the Maturity Date is extended
     to June 30, 2000 (i.e. the Sixth Month Maturity Date), pursuant to Section
     2.11(A)), or (ii) on or before August 31, 2000 (in the event the Maturity
     Date is

4
<PAGE>   5

     extended to January 5, 2001 (i.e. the One Year Extension Date) pursuant to
     Section 2.11(B)), the Borrower will provide the Bank evidence satisfactory
     to the Bank that the Borrower (either through an asset sale or stock sale)
     will be sold on or before the applicable Maturity Date, and that such sale
     will generate sufficient net proceeds to pay off the Obligations in full.

     Section 4.     FINANCIAL COVENANTS. Sections 7.01 and 7.02 of the Loan
                    Agreement are deleted in their entirety and replaced with
                    the following:

          SECTION 7.01. MINIMUM WORKING CAPITAL RATIO.

          (A)  Until the Maturity Date has been extended pursuant to Sections
     2.11(A) or 2.11(B) hereof, the Borrower will not permit the Working Capital
     Ratio, for any of the fiscal months set forth below, to be less than the
     respective ratio indicated for such fiscal months:

<TABLE>
<CAPTION>
                     FISCAL MONTH:                                           WORKING CAPITAL RATIO:

<S>                                                                          <C>
                    September 1999                                                  1 to 0.92
                    October 1999                                                    1 to 0.86
                    November 1999                                                   1 to 0.78
                    December 1999                                                   1 to 0.82
</TABLE>

          (B)  Upon extension of the Maturity Date pursuant to Sections 2.11(A)
     or 2.11(B) hereof, the Borrower will not permit the Working Capital to be
     less than the respective amounts indicated for such fiscal months:

<TABLE>
<CAPTION>
                  FISCAL MONTH:                                              AMOUNT:

<S>                                                                        <C>
                    December, 1999                                         $5,400,000
                     January, 2000                                         $4,700,000
                    February, 2000                                         $3,900,000
                      March, 2000                                          $3,200,000
              April, 2000 and Thereafter                                   $3,000,000
</TABLE>

          (C)  Upon extension of the Maturity Date pursuant to Sections 2.11(A)
     or 2.11(B) hereof, the Borrower shall maintain at all times (a) cash and
     cash equivalents of at least $1,500,000 or (b) $1,500,000 of the unused
     availability of the Maximum Line Availability.

          SECTION 7.02. MAXIMUM NET OPERATING LOSS. Until the Maturity Date has
     been extended pursuant to Sections 2.11(A) or 2.11(B) hereof, the Borrower
     will not permit its Net Operating Loss, for any of the fiscal periods set
     forth below, to be more than the respective amounts indicated for such
     fiscal periods:

<TABLE>
<CAPTION>
                        FISCAL PERIOD:                                 MAXIMUM NET OPERATING LOSS:
<S>                                                                    <C>
</TABLE>

5
<PAGE>   6

<TABLE>
<CAPTION>
<S>                                                                    <C>
                    January 1, 1999 through
                   the end of September 1999                               $4,200,000
                    January 1, 1999 through
                    the end of October 1999                                $4,965,000
                    January 1, 1999 through
                   the end of November 1999                                $5,930,000
                    January 1, 1999 through
                   the end of December 1999                                $5,370,000
</TABLE>

     Section 5.     EFFECTIVENESS; CONDITIONS TO EFFECTIVENESS. This Amendment
                    to Loan Agreement shall become effective upon execution
                    hereof by the Borrower and the Bank and satisfaction of the
                    following conditions:

                    (a)  Copies of Resolutions of the Board of Directors of the
                         Borrower authorizing the execution, delivery and
                         performance of the Borrower under this Amendment to
                         Loan Agreement (as well as ratifying the authorization
                         of execution, delivery and performance of the Security
                         Documents) certified by a Secretary or an Assistant
                         Secretary of the Borrower which certificate shall state
                         that the resolutions are in full force and effect.

                    (b)  Certificate of the Secretary or Assistant Secretary of
                         the Borrower certifying the name and signatures of the
                         officers of the Borrower authorized to sign this
                         Amendment and other documents to be delivered in
                         connection therewith as well as certifying and
                         delivering certified articles of incorporation and
                         by-laws.

                    (c)  Delivery to the Bank of Amended and Restated Revolving
                         Credit Note, this Amendment and Warrants (and any
                         related amendments to any stockholders agreement as the
                         Bank deems necessary).

6
<PAGE>   7

                    (d)  Confirmation of the existing guarantees of the
                         Borrower's Subsidiaries and Theodore Goodlander and the
                         other Security Documents.

                    (e)  Opinions of Borrower's counsel in form and substance
                         satisfactory to the Bank.

                    (f)  Long Form Good Standing Certificates for Borrower.

     Section 6.     MISCELLANEOUS.

                    (a)  The Borrower hereby confirms to the Bank that the
                         representations and warranties of the Borrower set
                         forth in Article III of the Loan Agreement (as amended
                         and supplemented hereby) are true and correct as of the
                         date hereof, as if set forth herein in full.

                    (b)  The Borrower has reviewed the provisions of this
                         Amendment and all documents executed in connection
                         therewith or pursuant thereto or incident or collateral
                         hereto or thereto from time to time and except
                         otherwise set forth in Section 6(i) below, there is no
                         Event of Default thereunder, and no condition which,
                         with the passage of time or giving of notice or both,
                         would constitute an Event of Default thereunder.

                    (c)  The Borrower agrees that each of the Loan Documents
                         shall remain in full force and effect after giving
                         effect to this Amendment. The granting of the liens and
                         security interests under the Security Documents secure
                         all the Obligations as may be amended by this
                         Amendment. The guarantees of the Borrower's
                         Subsidiaries guarantee all of the Obligations as may be
                         amended by this Amendment.

                    (d)  This Amendment represents the entire agreement among
                         the parties hereto relating to this Amendment, and
                         supersedes all prior understandings and agreements
                         among the parties relating to the subject matter of
                         this Amendment. The Borrower waives and releases any
                         claims it may have against, and forever discharges, the
                         Bank and its officers, directors, agents, attorneys,
                         employees, successors and assigns (the "Releases") from
                         any claims and causes of action arising out of the
                         transactions referred to or contemplated in any way by
                         the Loan Documents, and this Amendment or otherwise,
                         including without limitation, claims or defenses it may
                         have to the effect that the Releases may have in any
                         way acted or failed to act in any manner as to cause
                         injury to

7
<PAGE>   8

                         the Borrower or anyone claiming by or through them.

                    (e)  The Borrower represents and warrants that neither the
                         execution, delivery or performance by the Borrower of
                         any of the obligations contained in this Amendment or
                         in any Bank Document requires the consent, approval or
                         authorization of any person or governmental authority
                         or any action by or on account of with respect to any
                         person or governmental authority.

                    (f)  The Borrower agrees to pay on demand all of the Bank's
                         reasonable expenses in preparing, executing and
                         delivering this Amendment, and all related instruments
                         and documents, including, without limitation, the
                         reasonable fees and out-of-pocket expenses of the
                         Bank's special counsel and all travel related expenses
                         of the Bank in connection with any field audits or
                         otherwise. This Amendment shall be a Loan Document and
                         shall be governed by and construed and enforced under
                         the laws of the Commonwealth of Massachusetts.

                    (g)  The Bank agrees that upon satisfaction in full, in cash
                         of the Obligations as determined by the Bank, the Bank
                         shall return to the Borrower any collateral or other
                         property of the Borrower, at the Borrower's expense.

                    (h)  The Borrower and Bank agree that Exhibits G and H
                         attached to this Amendment shall be Exhibits to the
                         Loan Agreement.

                    (i)  The parties hereto acknowledge and agree that the
                         Borrower has failed to deliver to the Bank certain
                         documents and items set forth in that post-closing
                         letter, dated April 30, 1999 (as the same may have been
                         amended, restated, modified or modified from time to
                         time, the "Post-Closing Letter Agreement"), by and
                         between the Borrower and the Lender. The Bank hereby
                         (a) acknowledges and agrees that all of the obligations
                         and liabilities of the Borrower under the Post-Closing
                         Agreement are terminated, and notwithstanding any
                         provision contained in any of the Loan Documents to the
                         contrary, neither the Borrower nor any of its
                         Subsidiaries shall have any further obligation to
                         deliver to the Bank those items set forth in the
                         Post-Closing Letter which as of the date hereof, have
                         not been so delivered to the Bank; and (b) waives any
                         default or Event of Default under the Loan Documents
                         which has occurred or may have occurred as a result of
                         the failure of the Borrower or any of its Subsidiaries
                         to deliver such items to the Bank.

8
<PAGE>   9

                           [INTENTIONALLY LEFT BLANK]

9
<PAGE>   10

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

                                           STORAGE COMPUTER CORPORATION

                                           By: /s/ Theodore J. Goodlander
                                               --------------------------
                                               Name:  Theodore J. Goodlander
                                               Title: President

                                           CITIZENS BANK OF MASSACHUSETTS
                                           (as successor in interest to State
                                             Street Bank and Trust Company)

                                           By: /s/ Kenneth Mooney
                                               ------------------
                                               Name:  Kenneth Mooney
                                               Title: Vice President

10

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