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                                                                   EXHIBIT 10.11

                           LOAN AND SECURITY AGREEMENT

         THIS AGREEMENT (the "Agreement"), dated as of October 27, 1998 is
entered into by and between NetScreen Technologies, Inc., a Delaware corporation
having a principal place of business at 2860 San Tomas Expressway, Santa Clara,
California 95051 (the "Borrower") and Comdisco, Inc., a Delaware corporation
having a principal place of business at 6111 North River Road, Rosemont,
Illinois 60018 (the "Lender"). In consideration of the mutual agreements
contained herein, the parties hereto agree as follows:

         WHEREAS, Borrower desires to borrow from the Lender hereunder the
amount of Four Hundred Eighty Two Thousand Three Hundred Thirty-Four and 65/100
Dollars ($482,334.65) and Lender is willing to lend said amount to Borrower on
October 30, 1998 (the "Funding Date");

         NOW, THEREFORE, it is agreed:

SECTION 1. THE LOAN

     1.1 Subject to the terms and conditions set forth herein, Lender shall lend
to Borrower the aggregate original principal amount of Four Hundred Eighty Two
Thousand Three Hundred Thirty-Four and 65/100 Dollars ($482,334.65) (the "Loan")
with interest at the rate of seven and one quarter percent (7.25%) per annum
payable in monthly installments as set forth in the promissory note (the "Note")
in the form attached hereto and made a part hereof as Exhibit A, dated October
30, 1998.

     1.2 Upon the occurrence of and during an Event of Default (as defined
herein), interest shall thereafter be calculated at a rate of five percent (5%)
in excess of the rate that would otherwise be applicable ("Default Rate"). All
such interest shall be due and payable in arrears, on the first day of the
following month.

     1.3 Notwithstanding any provision in this Agreement, the Note, or any other
"Loan Document" (as defined herein), it is not the parties' intent to contract
for, charge or receive interest at a rate that is greater than the maximum rate
permissible by law which a court of competent jurisdiction shall deem applicable
hereto (which under the laws of the State of Illinois shall be deemed to be the
laws relating to permissible rates of interest on commercial loans) (the
"Maximum Rate"). If the Borrower actually pays Lender an amount of interest,
chargeable on the total aggregate principal Secured Obligations of Borrower
under this Agreement and the Note (as said rate is calculated over a period of
time that is the longer of (i) the time from the date of this Agreement through
the maturity time as set forth on the Note, or (ii) the entire period of time
that any principal is outstanding on the Note), which amount of interest exceeds
interest calculated at the Maximum Rate on said principal chargeable over said
period of time, then such excess interest actually paid by Borrower shall be
applied first, to the payment of principal outstanding on the Note; second,
after all principal is repaid, to the payment of Lender's out of pocket costs,
expenses, and professional fees which are owed by Borrower to Lender under this
Agreement or the Loan Documents; and third, after all principal, costs,
expenses, and professional fees owed by Borrower to Lender are repaid, the
excess (if any) shall be refunded to Borrower.

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     1.4 In the event any interest is not paid when due hereunder, delinquent
interest shall be added to principal and shall bear interest on interest,
compounded at the rate set forth in Section 1.1.

     1.5 Upon and during the continuation of an Event of Default hereunder (as
defined herein), all Secured Obligations, including principal, interest,
compounded interest, and reasonable professional fees, shall bear interest at a
rate per annum equal to the Default Rate.

     1.6 Borrower shall have the option to prepay the Note, in whole or in part,
at any time after the date hereof by paying the principal amount together with
all accrued and unpaid interest with respect to such principal amount, as of the
date of such prepayment [and the Balloon Payment as described in the Note]
together with a prepayment premium equal to the difference, if any, between (x)
the amount being prepaid and (y) the present value, discounted at the Treasury
Rate, of each installment of principal and interest being prepaid discounted to
the date of prepayment. If the amount in (x) is greater than the amount in (y),
no prepayment premium shall be due. The "Treasury Rate" shall mean the then
prevailing yield on U S Treasury Constant Maturities for the most recent
business day, as quoted in the Federal Reserve Statistical Release H15, as of
the date of prepayment for an obligation of comparable maturity to the maturity
date of the Note.

SECTION 2. SECURITY INTEREST

         As security for the payment of all indebtedness ("Indebtedness") of the
Borrower to the Lender hereunder and under the Note, as the same may be renewed,
extended for any period or rearranged, and the performance by the Borrower of
its other obligations hereunder (the Indebtedness and such other obligations
being hereinafter sometimes collectively referred to as the "Secured
Obligations"), the Borrower hereby assigns to the Lender, and grants to the
Lender a first priority security interest in, all the Borrower's right, title,
and interest in and to the following property ("Collateral"):

(i) the equipment and other property (the "Equipment") described in Exhibit B
attached hereto; and (ii) all proceeds, products, replacements, additions to,
substitutions for and accessions to any and all Equipment including, without
limitation, the proceeds applicable to the insurance referred to in Section 4
hereof.

SECTION 3. REPRESENTATIONS AND WARRANTIES OF BORROWER

         The Borrower represents, warrants and agrees that:

     3.1 It has good title in and to the Equipment, free of all liens, security
interests, encumbrances and claims whatsoever, except for the interest of the
Lender therein.

     3.2 It has the full power and authority to, and does hereby grant and
convey to the Lender, a valid first priority perfected security interest in the
Collateral as security for the Secured Obligations, free of all liens, security
interests, encumbrances and claims, and shall execute such Uniform Commercial
Code ("UCC") financing statements in connection herewith as the Lender may
reasonably request. No other lien, security interest, adverse claim or

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encumbrance has been created by Borrower or is known by Borrower to exist with
respect to any Collateral.

     3.3 It is a corporation duly organized, legally existing and in good
standing under the laws of the State of Delaware, and is duly qualified as a
foreign corporation in all jurisdictions where the failure to so qualify would
have a material adverse effect on the Collateral or the business of the Borrower
taken as a whole.

     3.4 The execution, delivery and performance of the Note, this Agreement,
the Warrant Agreement dated October 27, 1998 pursuant to which Borrower granted
to Lender the right to purchase the number of shares of preferred stock as set
forth therein ("Warrant Agreement"), and all financing statements, certificates
and other documents required to be delivered or executed in connection herewith
(collectively, the "Loan Documents") have been duly authorized by all necessary
corporate action of Borrower, the individual or individuals executing the Loan
Documents were duly authorized to do so, the Equipment is personal property and
as used by the Borrower will not be or become fixtures under applicable law, and
the Loan Documents constitute legal, valid and binding obligations of the
Borrower, enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization or other similar laws
generally affecting the enforcement of the rights of creditors.

     3.5 The Loan Documents do not and will not violate any provisions of its
Certificate of Incorporation, bylaws or any contract, agreement, law,
regulation, order, injunction, judgment, decree or writ to which the Borrower is
subject, or result in the creation or imposition of any lien, security interest
or other encumbrance upon the Collateral, other than those created by this
Agreement.

     3.6 The execution, delivery and performance of the Loan Documents do not
require the consent or approval of any other person or entity including, without
limitation, any regulatory authority or governmental body of the United States
or any state thereof or any political subdivision of the United States or any
state thereof.

     3.7 As of the date hereof no fact or condition exists that would (or could,
with the passage of time, the giving of notice, or both) constitute an Event of
Default under this Agreement or any of the Loan Documents and no event which has
had or could reasonably be expected to have a Material Adverse Effect has
occurred and is continuing. For purposes of this Agreement, "Material Adverse
Effect" means a material adverse effect upon (i) the business, operations,
properties, assets or financial condition of Borrower; or (ii) the ability of
Borrower to perform the Secured Obligations.

SECTION 4. INSURANCE AND RISK OF LOSS

     4.1 Risk of loss of, damage to or destruction of the Collateral shall be
borne by the Borrower and effective from the date of this Agreement and until
the payment and performance in full of all Secured Obligations, Borrower shall
at its own expense cause to be carried and maintained all risk casualty
insurance (covering risk of fire, theft and other such risks as the Lender may
require, including standard and extended coverage) with respect to each item of
Collateral in an amount no less than the replacement costs applicable to such
item of Collateral

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during the term of this Agreement. All policies evidencing such casualty
insurance shall contain a standard mortgagee's endorsement and shall provide for
at least thirty days prior written notice by the underwriter or insurance
company to the Lender in the event of cancellation or expiration. Borrower shall
provide Lender with insurance certificates evidencing the foregoing at time of
closing.

     4.2 If any item of Collateral is lost or rendered unusable as a result of
any physical damage to or destruction of such item of Equipment during the
period from the date hereof to and including the maturity date under the Note or
the date all Secured Obligations hereunder have been fully satisfied, whichever
is later, Borrower shall give to Lender prompt notice thereof. Borrower shall
determine, within fifteen (15) days after the date of occurrence of such loss,
damage or destruction, whether such item of Equipment can be repaired and
restored to the condition in which such item of Collateral was required to be
maintained as of the date immediately preceding such damage. If Borrower
determines that such item of Collateral can be repaired, Borrower, at its
expense, shall cause such item of Collateral to be promptly repaired. If
Borrower determines that such item of Collateral is lost or cannot be repaired,
Borrower shall promptly notify the Lender and such item of Collateral shall be
deemed to have suffered a "Casualty Loss" for purposes of this Section as of the
date of the occurrence of such loss. Within fifteen (15) days following the
occurrence of any such loss, damage or destruction, Borrower shall notify the
Lender of the item(s) of Collateral which has suffered such Casualty Loss ("Loss
Item"), and within thirty (30) days thereafter (the "Settlement Date"), Borrower
shall either (a) replace such item(s) of Collateral with equipment of the same
model, type and feature configuration, in an operating condition and repair no
less than that required hereunder of the damaged or lost equipment immediately
prior to the date of such damage or loss, and having a fair market value no less
than the Casualty Value (as defined herein) applicable to such item of
Collateral as of the date immediately prior to such damage, in which case such
replacement equipment shall for all purposes hereunder become part of the
Collateral and (without limiting the preceding provisions) Borrower shall grant
to Lender a first lien and security interest in respect of such replacement
equipment pursuant to the terms of this Agreement, and Borrower shall provide
the Lender evidence satisfactory to the Lender of Borrower's good and marketable
title to such replacement equipment (free of any liens, security interests or
encumbrances other than those created by this Agreement and Borrower shall be
entitled to receive the amount of any insurance or other recovery received by
Lender up to cost of obtaining the replacement equipment; or (b) so long as no
Event of Default or event which with the giving of notice or passage of time, or
both, would constitute an Event of Default, has occurred and is continuing,
Borrower may provide substitute equipment satisfactory to Lender to become part
of the Collateral and Borrower shall grant to Lender a first lien and security
interest in respect of such substitute equipment pursuant to the terms of this
Agreement, and Borrower shall provide the Lender evidence satisfactory to Lender
of Borrower's good and marketable title to such substitute equipment (free of
any liens, security interests or encumbrances other than created by this
Agreement and Lender shall provide any required endorsements in connection with
any insurance proceeds received by Borrower pursuant to such insurance policies;
or (c) Borrower shall pay Lender the insurance proceeds payable pursuant to such
insurance policies ("Insurance Proceeds") with respect to such Loss Item(s) and
the principal amount of the Note (and interest accrued on the principal amount
so prepayable) shall become due and payable on the Settlement Date to the extent
of the replacement cost for all such Loss Item(s). For purposes of this Section
4.2, Casualty Value shall mean an amount equal to the greater of the fair market
value of

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the Equipment as of the date of the Casualty Loss or the outstanding principal
and accrued interest on the Loan. Moneys so received shall be applied, on the
date of such receipt, as follows: first, to pay any accrued interest on the
outstanding principal amount of the Note on such date; second, to prepay, the
outstanding principal amount of the Note (to the extent of the fair market value
attributable to such Loss Item(s)); third, to pay any other Indebtedness of
amounts then due and owing to the Lender hereunder; and fourth, so long as there
has occurred no Event of Default under Section 8 hereof and no event which with
the giving of notice or passage of time or both would constitute an Event of
Default, has occurred and is continuing, Borrower and Lender hereby agree that
the balance of any such Insurance Proceeds shall be paid promptly to the
Borrower.

     4.3 Effective upon the date hereof under the Note and while there are any
Secured Obligations outstanding, Borrower shall cause to be carried and
maintained comprehensive general liability insurance with regard to the
Collateral against risks customarily insured against in the Borrower's business.
Such risks shall include, without limitation, the risks of death, bodily injury
and property damage associated with the Collateral. All policies evidencing such
insurance shall provide for at least thirty (30) days prior written notice by
the underwriter or insurance company to the Lender in the event of cancellation
or expiration.

     4.4 Borrower shall and does hereby indemnify and hold Lender, its agents
and shareholders harmless from and against any and all claims, costs, expenses,
damages and liabilities (including without limitation such claims, costs,
expenses, damages and liabilities based on liability in tort including without
limitation strict liability in tort) including reasonable attorneys' fees,
arising out of Borrower's ownership, possession, operation, control, use,
maintenance, delivery, or other disposition of the Collateral. Notwithstanding
the foregoing, Borrower shall not be responsible under the terms of this Section
4.4 to a party indemnified hereunder for any claims, costs, expenses, damages
and liabilities occasioned by the negligence or willful misconduct of such
indemnified party.

SECTION 5. COVENANTS OF BORROWER

         Borrower covenants and agrees as follows at all times while any of the
Secured Obligations remain outstanding:

     5.1 Borrower shall maintain the Equipment in good operating order, repair,
condition and appearance and protect the Equipment from deterioration, other
than normal wear and tear. Borrower shall not the Equipment or permit its use
for any purpose other than for which it was designed. Borrower's obligation
regarding the maintenance of the Equipment shall include, without limitation,
all maintenance, repair, refurbishment and replacement recommended or advised
either by the manufacturer, or that commonly performed by prudent business
and/or professional practice. Any exceptions or qualifications expressed in this
Agreement relating to normal or ordinary wear and tear shall not be deemed to
limit Borrower's obligations pursuant to the preceding sentence.

     5.2 Borrower shall only relocate any item of the Collateral provided that:
(a) it shall have caused to be filed and/or delivered to the Lender all UCC
financing statements, certificates or other documents or instruments necessary
to continue in effect the first prior perfected security

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interest of the Lender in the Collateral, and (b) it shall have given the Lender
no less than fifteen (15) days prior written notice of such relocation.

     5.3 Upon the request of Lender, Borrower shall, during business hours, make
the Equipment available to Lender for inspection at the place where it is
normally located and shall make Borrower's log and maintenance records
pertaining to the Equipment available to the Equipment available to Lender for
inspection. Borrower shall take all action necessary to maintain such logs and
maintenance records in a correct and complete fashion.

     5.4 Upon the request of Lender, Borrower shall cause the Equipment to be
plainly, permanently and conspicuously marked, by stenciling or by metal tag or
plate affixed thereto, indicating Lender's security interest in the Equipment.
Borrower shall replace any such stenciling, tag or plate which may be removed or
destroyed or become illegible. Borrower shall keep all Equipment free from any
marking or labeling which might be interpreted as a claim of ownership adverse
to Borrower's.

     5.5 Borrower covenants and agrees to pay when due, all taxes, fees or other
charges of any nature whatsoever (together with any related interest or
penalties) now or hereafter imposed or assessed against Borrower, Lender or the
Collateral or upon Borrower's ownership, possession, use, operation or
disposition thereof or upon Borrower's rents, receipts or earnings arising
therefrom. Borrower shall file on or before the due date therefor all personal
property tax returns in respect of the Collateral.

     5.6 Borrower shall furnish to Lender the financial statements listed
hereinafter, prepared in accordance with generally accepted accounting
principles consistently applied (the "Financial Statements"):

          (a) as soon as practicable (and in any event within thirty (30) days)
     after the end of each month: an internally prepared income statement,
     balance sheet, and cash flow statement, (including the commencement of any
     material litigation by or against Borrower), each certified by Borrower's
     Chief Executive or Financial Officer to be true and correct;

          (b) as soon as practicable (and in any event within one hundred and
     twenty (120) days) after the end of each fiscal year, audited Financial
     Statements, setting forth in comparative form the corresponding figures for
     the preceding fiscal year, and accompanied by any audit report and opinion
     of the independent certified public accountants selected by Borrower; and

          (c) promptly any additional information (including but not limited to
     tax returns, income statements, balance sheets, and names of principal
     creditors) as Lender reasonably believes necessary to evaluate Borrower's
     continuing ability to meet financial obligations.

     5.7 Notwithstanding the foregoing, after the effective date of the initial
registration statement covering a public offering of Borrower's securities, the
term "Financial Statements" shall be deemed to refer to only those statements
required by the Securities and Exchange Commission, to be provided no less
frequently than quarterly. Borrower will from time to time

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execute, deliver and file, alone or with Lender, any financing statements,
security agreements or other documents; and take all further action that may be
necessary, or that Lender may reasonably request, to confirm, perfect, preserve
and protect the security interests intended to be granted hereby, and in
addition, and for such purposes only, Borrower hereby authorizes Lender to
execute and deliver on behalf of Borrower and to file such financing statements,
security agreement and other documents without the signature of Borrower either
in Lender's name or in the name of Borrower as agent and attorney-in-fact for
Borrower.

     5.8 Borrower shall protect and defend Borrower's title as well as the
interest of the Lender against all persons claiming any interest adverse to
Borrower or Lender and shall at all times keep the Collateral free and clear
from any attachment or levy, liens or encumbrances whatsoever (except any placed
thereon by Lender, or any liens arising by operation of law with respect to any
obligations not yet overdue or any other liens consented to in writing by
Lender) and shall give Lender immediate written notice thereof.

SECTION 6. CONDITIONS PRECEDENT TO LOAN

     On or prior to the Funding Date, Borrower will provide to Lender the
following, in form and substance satisfactory to Lender:

     6.1 Such documentation, including without limitation, a Bill of Sale, and
other documents as shall reasonably evidence Borrower's right, title and
interest in and to the Equipment;

     6.2 A certified resolution or other certificate of corporate authority for
the execution and the delivery of, and the performance of all Secured
Obligations under the Loan Documents and all related documentation;

     6.3 Incumbency certificate evidencing the authority and facsimile
signatures of the individuals executing the Loan Documents;

     6.4 UCC financing statements as deemed appropriate by Lender to perfect its
security interest in the Collateral;

     6.5 Certified copies of the certificate of incorporation of Borrower;

     6.6 Certificate of good standing for Borrower from its state of
incorporation and similar certificates from all jurisdictions in which it does
business and where the failure to be qualified would have a material adverse
effect on Borrower's business; and

     6.7 Insurance certificates as required by Section 4 hereof.

SECTION 7. ASSIGNMENT BY LENDER

     7.1 Borrower acknowledges and understands that Lender may sell and assign
all or a part of its interest hereunder and under the Note and Loan Documents to
any person or entity (an "Assignee"). After such assignment the term Lender
shall mean such Assignee, and such Assignee shall be vested with all rights,
powers and remedies of Lender hereunder with respect

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to the interest so assigned; but with respect to any such interest not so
transferred, the Lender shall retain all rights, powers and remedies hereby
given. No such assignment by Lender shall relieve Borrower of any of its
obligations hereunder. Borrower shall acknowledge such assignment or assignments
as shall be designated by written notice given by Lender to Borrower. The Lender
agrees that in the event of any transfer by it of the Note, it will endorse
thereon a notation as to the portion of the principal of the Note which shall
have been paid at the time of such transfer and as to the date to which interest
shall have been last paid thereon.

SECTION 8. DEFAULT

     The occurrence of any one or more of the following events (herein called
"Events of Default") shall constitute a default hereunder and under the Note:

     8.1 The Borrower defaults in the payment of any principal or interest
payable under this Agreement, the Note or any of the other Loan Documents and
such default continues for more than five (5) days after the due date thereof;

     8.2 The Borrower defaults in the payment or performance of any other
covenant or obligation of the Borrower hereunder or under the Note or any other
Loan Documents for more than ten (10) business days after the Lender has given
notice of such default to the Borrower;

     8.3 Any representation or warranty made herein by the Borrower shall prove
to have been false or misleading in any material respect;

     8.4 The making of an assignment by Borrower for the benefit of its
creditors or the admission by Borrower in writing of its inability to pay its
debts as they become due, or the insolvency of Borrower, or the filing by
Borrower of a voluntary petition in bankruptcy, or the adjudication of Borrower
as a bankrupt, or the filing by Borrower of any petition or answer seeking for
itself any reorganization, arrangement, composition, readjustment, liquidation,
dissolution, or similar relief under any present or future statute, law or
regulation, or the filing of any answer by Borrower admitting, or the failure by
Borrower to deny, the material allegations of a petition filed against it for
any such relief, or the seeking or consenting by Borrower to, or acquiescence by
Borrower in, the appointment of any trustee, receiver or liquidator of Borrower
or of all or any substantial part of the properties of Borrower, or the
inability of Borrower to pay its debts when due, or the commission by Borrower
of any act of bankruptcy as defined in the Federal Bankruptcy Act, as amended;

     8.5 The failure by Borrower, within sixty (60) days after the commencement
of any proceeding against Borrower seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any
present or future statute, law or regulation, to obtain the dismissal of such
proceeding or, within sixty (60) days after the appointment, without the written
consent or acquiescence of Lender, of any trustee, receiver or liquidator of
Borrower or of all or any substantial part of the properties of Borrower, to
vacate such appointment; or

     8.6 The default by Borrower under any (i) other notes, (ii) other agreement
for borrowed money, (iii) equipment lease, or (iv) other agreement, made between
Borrower and Lender.

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SECTION 9. REMEDIES

     Upon the occurrence hereof of any one or more Events of Default, Lender, at
its option, may declare the Note to be accelerated and immediately due and
payable, (provided, that upon the occurrence of an Event of Default of the type
described in 8.4 or 8.5, the Note and all other Secured Obligations shall
automatically be accelerated and made due and payable without any further act)
whereupon the unpaid principal of and accrued interest on such Note shall become
immediately due and payable, and shall thereafter bear interest at the Default
Rate and calculated in accordance with Section 1.2. Lender may exercise all
rights and remedies with respect to the Collateral granted pursuant hereto for
such Note, or otherwise available to it under applicable law, including the
right to release, hold or otherwise dispose of all or any part of the Collateral
and the right to utilize, process and commingle the Collateral.

     Upon the happening and during the continuance of any Event of Default,
Lender may then, or at any time thereafter and from time to time, apply,
collect, sell in one or more sales, lease or otherwise dispose of, any or all of
the Collateral, in its then condition or following any commercially reasonably
preparation or processing, in such order as Lender may elect, and any such sale
may be made either at public or private sale at its place of business or
elsewhere.

     Borrower agrees that any such public or private sale may occur upon five
(5) calendar day's notice to Borrower. Lender may require Borrower to assemble
the Collateral and make it available to Lender at a place designated by Lender
which is reasonably convenient to Lender and Borrower. The proceeds of any sale,
disposition or other realization upon all or any part of the collateral shall be
distributed by Lender in the following order of priorities:

     First, to Lender in an amount sufficient to pay in full Lender's reasonable
costs and professionals' and advisors' fees and expenses;

     Second, to Lender in an amount equal to the then unpaid amount of the
Secured Obligations in such order and priority as Lender may choose in its sole
discretion; and

     Finally, upon payment in full of all of the Secured Obligations, to
Borrower or its representatives or as a court of competent jurisdiction may
direct.

The Lender shall return to the Borrower any surplus Collateral remaining after
payment of all Secured Obligations.

SECTION 10. MISCELLANEOUS

     10.1 Borrower shall remain liable to Lender for any unpaid Secured
Obligations, advances, costs, charges and expenses, together with interest
thereon and shall pay the same immediately to Lender at Lender's offices.

     10.2 The powers conferred upon Lender by this Agreement are solely to
protect its interest in the Collateral and shall not impose any duty upon Lender
to exercise any such powers.

     10.3 This is a continuing Agreement and the grant of a security interest
hereunder shall remain in full force and effect and all the rights, powers and
remedies of Lender hereunder shall

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continue to exist until the Secured Obligations are paid in full as the same
become due and payable. When Borrower has paid in full all Secured Obligations,
Lender will, promptly upon request of Borrower, execute a written termination
statement, reassigning to Borrower, without recourse, the Collateral and all
rights conveyed hereby and return possession (if Lender has possession) of the
Collateral to Borrower. The rights, powers and remedies of Lender hereunder
shall be in addition to all rights, powers and remedies given by statute or rule
of law and are cumulative. The exercise of any one or more of the rights, powers
and remedies provided herein shall not be construed as a waiver of any other
rights, powers and remedies of Lender. Furthermore, regardless of whether or not
the UCC is in effect in the jurisdiction where such rights, powers and remedies
are asserted, Lender shall have the rights, powers and remedies of a secured
party under the U CC.

     10.4 Upon payment in full of all Secured Obligations, the Lender shall
cancel the Note, this Agreement and all UCC financing statements, if any, and
shall promptly deliver all such canceled documents to the Borrower.

     10.5 GOVERNING LAW. This Agreement, the Note and the other Loan Documents
have been negotiated and delivered to Lender in the State of Illinois and shall
not become effective until accepted by Lender in the State of Illinois. Payment
to Lender by Borrower of the Secured Obligations is due in the State of
Illinois. This Agreement shall be governed by, and construed and enforced in
accordance with the laws of the State of Illinois excluding conflict of laws
principles that would cause the application of laws of any other jurisdiction.

     10.6 CONSENT TO JURISDICTION AND VENUE. All judicial proceedings arising in
or under or related to this Agreement, the Note or any of the other Loan
Documents may be brought in any state or federal court of competent jurisdiction
located in the State of Illinois. By execution and delivery of this Agreement,
each party hereto generally and unconditionally: (a) consents to personal
jurisdiction in Cook County, State of Illinois; (b) waives any objection as to
jurisdiction or venue in the aforesaid courts; and (d) irrevocably agrees to be
bound by any judgment rendered thereby in connection with this Agreement, the
Note and the other Loan Documents. Service of process on any party hereto in any
action arising out of or relating to this Agreement shall be effective if given
in accordance with the requirements for notice set forth in Section 10.8 below
and shall be deemed effective and received as set forth in Section 10.8 below.
Nothing herein shall affect the right to serve process in any other manner
permitted bylaw or shall limit the right of either party to bring proceedings in
the courts of any other jurisdiction.

     10.7 Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be prohibited by or invalid under
such law, such provision shall be ineffective only to the extent and duration of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

     10.8 Any notice required or given hereunder shall be deemed properly given
upon the earlier of: (i) the first business day after transmission by facsimile
or hand delivery or deposit with an overnight express service or overnight mail
delivery service; or (ii) or three (3) days after mailed, postage prepaid, in
each case, addressed to the designated recipient at its address set

                                       10

<PAGE>

forth herein or such other address as such party may advise the other party by
notice given in accordance with this provision.

     10.9 Lender and Borrower acknowledge that there are no agreements or
understandings, written or oral, between Lender and Borrower with respect to the
Loan, other than as set forth herein, in the Note and the other Loan Documents
and that this Agreement, the Note and the other Loan Documents contain the
entire agreement between Lender and Borrower with respect thereto. None of the
terms of this Agreement, the Note and the other Loan Documents may be amended
except by an instrument executed by each of the parties hereto.

     10.10 No omission, or delay, by Lender at any time to enforce any right or
remedy reserved to it, or to require performance of any of the terms, covenants
or provisions hereof by Borrower at any time designated, shall be a waiver of
any such right or remedy to which Lender is entitled, nor shall it in any way
affect the right of Lender to enforce such provisions thereafter.

     10.11 All agreements, representations and warranties contained in this
Agreement or the Note, or in any Loan Documents delivered pursuant hereto or in
connection herewith shall be for the benefit of Lender and any Assignee and
shall survive the execution and delivery of this Agreement or the Note and the
expiration or other termination of this Agreement or the Note.

     10.12 This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument.

     10.13 This Agreement shall be binding upon, and shall inure to the benefit
of, Borrower and its permitted assigns (if any). Borrower shall not assign its
obligations under this Agreement, the Note or any of the other Loan Documents
without Lender's express written consent and any such attempted assignment shall
be void and of no effect. Any assignment by Borrower in connection with a
"Merger" (as defined below) shall be subject to Lender's prior consent. Any
consent granted by Lender shall be conditioned upon such surviving entity or
transferee assuming Borrower's Secured Obligations hereunder pursuant to
assignment documents reasonably acceptable to Lender. If Lender reasonably
withholds its consent to such assignment in connection with a Merger, the
outstanding principal and accrued and unpaid interest shall be prepaid in whole.

     For purposes of this Agreement, a "Merger" shall mean any consolidation or
merger of the Borrower with or into any other corporation or entity, any sale or
conveyance of an or substantially all of the assets or stock of the Borrower by
or to any other person or entity in which Borrower is not the surviving entity.

         [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       11

<PAGE>

         IN WITNESS WHEREOF, the Borrower and the Lender have duly executed and
delivered this Agreement as of the day and year first above written.

                                       BORROWER: NETSCREEN TECHNOLOGIES, INC.

                                            By:  /s/ Brian Kerr
                                               ---------------------------------
                                            Title:  Director of Finance

                                            Date:  October 28, 1998

ACCEPTED IN ROSEMONT, ILLINOIS:

                                       LENDER:  COMDISCO, INC.

                                            By:  /s/  Jill C. Hanses
                                               ---------------------------------
                                            Title:  Vice President

                                            Date:  October 28, 1998

                                       12

<PAGE>

                                    Exhibit A
                             SECURED PROMISSORY NOTE

$482,334.65                                        Date:  October 30, 1998
                                                   Due:   May 1, 2002

FOR VALUE RECEIVED, NetScreen Technologies, Inc., a Delaware corporation (the
"Borrower") hereby promises to pay to the order of Comdisco, Inc., a Delaware
corporation (the "Lender") at P.O. Box 91744, Chicago, IL 60693 or such other
place of payment as the holder of this Secured Promissory Note (this "Note") may
specify from time to time in writing, in lawful money of the United States of
America, the principal amount of Four Hundred Eighty Two Thousand Three Hundred
Thirty-four and 65/100 Dollars ($482,334.65) together with interest at seven
and one-quarter percent (7.25%) per annum from the date of this Note to maturity
of each installment on the principal hereof remaining from time to time unpaid,
such principal and interest to be paid in 42 equal monthly installments of
$13,039.85 each, commencing December 1, 1998 and on the same day of each month
thereafter to and including May 1, 2002 and an additional installment in the
amount of $72,350.20 ("Balloon Payment") to be paid on May 1, 2002, such
installments to be applied first to accrued and unpaid interest and the balance
to unpaid principal. Interest shall be computed on the basis of a year
consisting of twelve months of thirty days each.

This Note is the Note referred to in, and is executed and delivered in
connection with, that certain Loan and Security Agreement dated as of October
27, 1998 by and between Borrower and Lender (as the same may from time to time
be amended, modified or supplemented in accordance with its terms, the "Loan
Agreement"), and is entitled to the benefit and security of the Loan Agreement
and the other Loan Documents (as defined in the Loan Agreement), to which
reference is made for a statement of all of the terms and conditions thereof.
All terms defined in the Loan Agreement shall have the same definitions when
used herein, unless otherwise defined herein.

The Borrower waives presentment and demand for payment, notice of dishonor,
protest and notice of protest and any other notice as permitted under the UCC or
any applicable law.

This Note has been negotiated and delivered to Lender and is payable in the
State of Illinois, and shall not become effective until accepted by Lender in
the State of Illinois. This Note shall be governed by and construed and enforced
in accordance with, the laws of the State of Illinois, excluding any conflicts
of law rules or principles that would cause the application of the laws of any
other jurisdiction.

BORROWER:                                   NETSCREEN TECHNOLOGIES, INC.
                                            2860 San Tomas Expressway
                                            Santa Clara, CA  95051

                                            Signature:  /s/  Brian Kerr
                                                      --------------------------
                                            Print Name:  Brian Kerr

                                            Title:  Director of Finance

                                       1

<PAGE>

<TABLE>
<CAPTION>

NetScreen Technologies, Inc.                                  EXHIBIT B
PLB LOAN ASSETS
------------------------------------------------------------------------------------------------------------------------------------
          Purchase
Item #    Date      Vendor            Description                                              Invoice #             Serial #
------------------------------------------------------------------------------------------------------------------------------------
<S>       <C>       <C>               <C>                                                     <C>      <C>
Computers
   1      11/25/97  Fine Tec          Pentium II 233MHz 32MB, 4.3 GB System w/17" monitor       577699         64484/CN7C71029
   2      12/4/97   Fine Tec          Pentium 200 MHZ MMX, 32MB, 4.3GB, w/17" monitor           577791         91774/675H7B031
   3      12/8/97   Fine-Tec          Pentium 200 MHZ MMX, 32MB, 4.3GB                          577826            64528-529
   3      12/8/97   Fine-Tec          Acer 17" monitor                                          577826       775H7B031/78OH7B031
   4      12/8/97   Fine-Tec          Pentium II 233 MHz System, 32MB, 4.3 GB, w/17" monitor    577826      64530/7643155H76491H
   5      12/16/97  Fine-Tec          Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor  577916     64566/A21249727016208
   6      12/19/97  Fine-Tec          Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor  577987     64627/A21249741054646
   7      12/19/97  Fine-Tec          Pentium 150MHz PCI System w/accessories, 16MB, 2.1GB      577987       64628/TL72667313
                                        17" monitor
   8      12/22/97  EGIS              Sun Spark System 32M/2 1G/15" color/turbo                    3             004F1532
   9      12/23/97  Fine-Tec          Pentium 200 MHZ MMX                                       578002          064833-634
   9      12/23/97  Fine-Tec          Viewsonic 17" monitor                                     578002        JL73483362/943
   10      1/6/98   Fine-Tec          Pentium 150 MHZ PCI System 32mb, 2.1 gb                   578047          064661-682
   10      1/6/98   Fine-Tec          Acer 17" monitor                                          578047        80347697H78031
   11     1/19/98   Fine-Tec          Pentium 200 MHZ MMX NT System 32MB, 4.3GB/W 17" MON       578184             64681
   12     1/19/98   Fine-Tec          Pentium 200 MHZ MMX WIN 95 System 32MB, 4.3GB/W 17" MON   578184             64682
   14      2/4/98   Keep it Simple    ASUS PCI/ISA 512K IDE/10 Motherboard                       29622              SN
   15      2/4/98   Keep it Simple    ASUS PCI/ISA 512K IDE/10 Motherboard                       29623          WT3510667013
   16      2/6/98   Fine-Tec          Pentium II 266 MHz System 32mb, 4.3gb w/20" MON           578409        64719/774700183
   17     2/14/98   Acclaim Technolo  Ultra5 270 MHz 4.3 GB 128MB w/solaris 2.5 media            78190            FW80100112
   18     2/27/98   Fine-Tec          Pentium 200 MHz MMX Complete System 16MB/ 3.2 GB          578639           064780-783
   18     2/27/98   Fine-Tec          Acer 17" monitor                                          578639    751539H76491/CN7C71757
   18     2/27/98   Fine-Tec          Acer 17" monitor                                          578639 80347657H7B031/93834122H78031
   19     2/27/98   Fine-Tec          Pentium 200 MHZ MMX Complete Server 16MB, 3.2GB           578639             064784
   20      3/6/98   Fine-Tec          Pentium 133 MHz PCI System                                578747           064806-809
   20      3/6/98   Fine-Tec          14" KFC Smile Monitor                                     578747      CN7C71305/MY7533250
   21      3/6/98   Software Dev. Sys Monitor Debugger for Power PC                              20222              42000
   22      3/9/98   Fine-Tec          Pentium 200 MHz MMX Complete System, 32MB, 3.1 GB w/17"   578759         64812/34713031
                                        monitor
   23      3/9/98   Acclaim Technolo  Ultra5 270 MHz 4.3 GB 128MB W/solaris 2.5 media. w/17"     76801      FW80703211/9748KC0273
                                        monitor
   24     3/19/98   Keep It Simple    HP Surestore 500DE 4GB Int Dat Drive                       30380           GB00120918
   25     3/24/98   Fine-Tec          Pentium 200 MHZ MMX Complete System                       578918           064843-846
   25     3/24/98   Fine-Tec          14" kfc Smile Monitor                                     578918  NKU7C67045/68132/67844/67964
   26     4/23/98   Fine-Tec          System Intel Pentium 233MHz MMX w/14" monitor             579149           064965-966
   26     4/23/98   Fine-Tec          14" KFC Monitor                                           579149       NKU7778984/06698
   27     4/23/98   Fine-Tec          System Intel Pentium II 300MHz                            579149           064967-968
   28     4/29/98   Fine-Tec          System Intel Pentium 233MHz MMX                           579203           064974-977
   28     4/29/98   Fine-Tec          17" KFC MONITOR                                           579203  NKU7A64026/7A64036/7C71305/
                                                                                                                  7C71680
   29      5/4/98   Fine-Tec          System Intel Pentium II 233MHz W/17" monitor and drive    579241       064997/JX80523799
   30      5/6/98   Dell Computer     Dell Dimension XPS R400MHz Pentium II Base, 256 MB. 4GB 158322255       F2BOV/B8306774
                                        w/17" monitor
   31     5/19/98   Fine-Tec          System Intel Pentium 200MHz MMX w/14" monitor             579370     065060-061/NKU7071736/434
   32     5/21/98   Fine-Tec          System Intel Pentium 75MHz w/14" monitor and APC          579378 065092/FB9727018978NKU7B82062
   33     5/26/98   Fine-Tec          System Intel Pentium 233MHz MMX w/14" monitor             579404  065100-101/NKU7C71076/71031
   34      6/3/98   Fine-Tec          System Intel Pentium 75 MHz                               579461              65162
   35      6/3/98   Fine-Tec          System Intel Pentium 200MHz MMX                           579461              65161
   36      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/monitor                 579467  065168-169/NKU7C71027/71029
  36/A     6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX                           579467             165170
   38      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/14" SVGA Monitor, MS    579489        065172/NKU7C1037
                                        Win 95 on C
   39      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/Acer 15" SVGA Monitor,  579489          065173/P5N421
                                        MSNT 4.0
   40     6/17/98   Fine-Tec          System Intel Pentium II 266MHz w/Viewsonic G771, 17"      579531        065214/KX8O228366
                                        Monitor
   41     6/23/98   Fine-Tec          System Intel Pentium II 300MHz w/Acer SVGA Monitor        579582   065290-91/BP5N421/3P5N421
   42     6/23/98   Fine-Tec          System Intel Pentium II 233MHz MMX w/Acer 15" SVGA        579582 065292-293/BP5N421/1425P5N421
                                        Monitor
   43     6/23/98   Fine-Tec          System Intel Pentium 233MHz MMX w/Viewsonic 17" SVGA      579582       065294/KX8O638573
                                        Monitor
   44     6/25/98   Fine-Tec          System Intel Pentium 233MHz MMX w/17" monitor, sound      579681       065317/KX76125913
                                        card and mouse
   45     6/27/98   Fine-Tec          System Intel Pentium II 300MHz w/17" & 15" monitor and    579430  0651493X80726596/1053PSN421
                                        accessories
   47      7/2/98   Fine-Tec          System Intel Pentium 200MHz MMX w/15" monitor, speakers   579618      065323/MSEH71673885
                                        and sound card
   48      7/6/98   CAT Technology    U80 entire system/monitor                                 H12382     5826F3F18/S9805KH2620
   49      7/7/98   Fine-Tec          System Intel Pentium II 300 MHz, 128MB, 3.2 GB W/17" mon  579636       065327/kx80638366
   50     7/16/98   Fine-Tec          System Intel Pentium II 300 MHz                           579691               65382
   51     7/27/98   Fine-Tec          System Intel Pentium II 300 MHz w/KFC 14" SVGA Monitor    579747 065413-415/nku7c71431/7c71601
                                                                                                                  /7c71758
   52                                 Intentionally left blank
   53     7/31/98   Web Zone          HP Vectra VL7 P33 MHZ                                     101566  US82614928/15621/14988/14969
   54     7/31/98   Web Zone          HP Vectra VL7 P33 MHZ                                     101566     US82614874/US82615567
   55     7/31/98   Keep It Simple    Toshiba Tecra 550 CDT Notebook w/accessories               32289       S68027617/03801268
   55     7/31/98   Keep It Simple    Toshiba Tecra 550 CDT Notebook w/accessories               32290 S68026778/03301273/JV82000794
   57     8/12/98   Fine Tec          Toshiba Tecra 550 CDT Laptop Computer w/accessories       579857           88029480
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
          Purchase                                                                                 CDO                  Financed
Item #    Date      Vendor            Description                                               Asset Tag   Quantity    Amount
------------------------------------------------------------------------------------------------------------------------------------
<S>       <C>       <C>               <C>                                                       <C>         <C>        <C>
Computers
   1      11/25/97  Fine Tec          Pentium II 233MHz 32MB, 4.3 GB System w/17" monitor                                1,910.00
   2      12/4/97   Fine Tec          Pentium 200 MHZ MMX, 32MB, 4.3GB, w/17" monitor                           1        1,600.00
   3      12/8/97   Fine-Tec          Pentium 200 MHZ MMX, 32MB, 4.3GB                                          2        2,200.00
   3      12/8/97   Fine-Tec          Acer 17" monitor                                                          2        1,000.00
   4      12/8/97   Fine-Tec          Pentium II 233 MHz System, 32MB, 4.3 GB, w/17" monitor                    1        1,975.00
   5      12/16/97  Fine-Tec          Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor                  1        1,085.00
   6      12/19/97  Fine-Tec          Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor                  1          980.00
   7      12/19/97  Fine-Tec          Pentium 150MHz PCI System w/accessories, 16MB, 2.1GB                      1        1,410.00
                                        17" monitor
   8      12/22/97  EGIS              Sun Spark System 32M/2 1G/15" color/turbo                                 1        3,971.00
   9      12/23/97  Fine-Tec          Pentium 200 MHZ MMX                                                       2        2,200.00
   9      12/23/97  Fine-Tec          Viewsonic 17" monitor                                                     2        1,000.00
   10      1/6/98   Fine-Tec          Pentium 150 MHZ PCI System 32mb, 2.1 gb                                   2        2,660.00
   10      1/6/98   Fine-Tec          Acer 17" monitor                                                          2            0.00
   11     1/19/98   Fine-Tec          Pentium 200 MHZ MMX NT System 32MB, 4.3GB/W 17" MON         146135        1        1,670.00
   12     1/19/98   Fine-Tec          Pentium 200 MHZ MMX WIN 95 System 32MB, 4.3GB/W 17" MON     146136        1        1,645.00
   14      2/4/98   Keep it Simple    ASUS PCI/ISA 512K IDE/10 Motherboard                        146137        1        1,425.00
   15      2/4/98   Keep it Simple    ASUS PCI/ISA 512K IDE/10 Motherboard                                      1        1,300.00
   16      2/6/98   Fine-Tec          Pentium II 266 MHz System 32mb, 4.3gb w/20" MON                           1        2,520.00
   17     2/14/98   Acclaim Technolo  Ultra5 270 MHz 4.3 GB 128MB w/solaris 2.5 media                           1        4,200.25
   18     2/27/98   Fine-Tec          Pentium 200 MHz MMX Complete System 16MB/ 3.2 GB                          4        5,600.00
   18     2/27/98   Fine-Tec          Acer 17" monitor                                                          2            0.00
   18     2/27/98   Fine-Tec          Acer 17" monitor                                                          2            0.00
   19     2/27/98   Fine-Tec          Pentium 200 MHZ MMX Complete Server 16MB, 3.2GB                           1        1,795.00
   20      3/6/98   Fine-Tec          Pentium 133 MHz PCI System                                                4        3,400.00
   20      3/6/98   Fine-Tec          14" KFC Smile Monitor                                                     4            0.00
   21      3/6/98   Software Dev. Sys Monitor Debugger for Power PC                                             1        3,960.00
   22      3/9/98   Fine-Tec          Pentium 200 MHz MMX Complete System, 32MB, 3.1 GB w/17"                   1        1,400.00
                                        monitor
   23      3/9/98   Acclaim Technolo  Ultra5 270 MHz 4.3 GB 128MB W/solaris 2.5 media. w/17"                    1        4,200.25
                                        monitor
   24     3/19/98   Keep It Simple    HP Surestore 500DE 4GB Int Dat Drive                                      1          995.00
   25     3/24/98   Fine-Tec          Pentium 200 MHZ MMX Complete System                                       4        3,940.00
   25     3/24/98   Fine-Tec          14" kfc Smile Monitor                                                     4            0.00
   26     4/23/98   Fine-Tec          System Intel Pentium 233MHz MMX w/14" monitor                             2        1,970.00
   26     4/23/98   Fine-Tec          14" KFC Monitor                                                           2            0.00
   27     4/23/98   Fine-Tec          System Intel Pentium II 300MHz                                            2        2,290.00
   28     4/29/98   Fine-Tec          System Intel Pentium 233MHz MMX                                           4        4,100.00
   28     4/29/98   Fine-Tec          17" KFC MONITOR                                                           4            0.00
   29      5/4/98   Fine-Tec          System Intel Pentium II 233MHz W/17" monitor and drive                    1        1,525.00
   30      5/6/98   Dell Computer     Dell Dimension XPS R400MHz Pentium II Base, 256 MB. 4GB                   1        3,752.00
                                        w/17" monitor
   31     5/19/98   Fine-Tec          System Intel Pentium 200MHz MMX w/14" monitor                             2        1,950.00
   32     5/21/98   Fine-Tec          System Intel Pentium 75MHz w/14" monitor and APC                          1          970.00
   33     5/26/98   Fine-Tec          System Intel Pentium 233MHz MMX w/14" monitor                             2        2,030.00
   34      6/3/98   Fine-Tec          System Intel Pentium 75 MHz                                               1          620.00
   35      6/3/98   Fine-Tec          System Intel Pentium 200MHz MMX                                           1          900.00
   36      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/monitor                                 2        1,930.00
  36/A     6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX                                           1          800.00
   38      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/14" SVGA Monitor, MS                    1        1,060.00
                                        Win 95 on C
   39      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/Acer 15" SVGA Monitor,                  1        1,190.00
                                        MSNT 4.0
   40     6/17/98   Fine-Tec          System Intel Pentium II 266MHz w/Viewsonic G771, 17"                      1        1,580.00
                                        Monitor
   41     6/23/98   Fine-Tec          System Intel Pentium II 300MHz w/Acer SVGA Monitor                        2        2,870.00
   42     6/23/98   Fine-Tec          System Intel Pentium II 233MHz MMX w/Acer 15" SVGA                        2        2,240.00
                                        Monitor
   43     6/23/98   Fine-Tec          System Intel Pentium 233MHz MMX w/Viewsonic 17" SVGA                      1        1,355.00
                                        Monitor
   44     6/25/98   Fine-Tec          System Intel Pentium 233MHz MMX w/17" monitor, sound                      1        1,322.00
                                        card and mouse
   45     6/27/98   Fine-Tec          System Intel Pentium II 300MHz w/17" & 15" monitor and                    1        2,079.00
                                        accessories
   47      7/2/98   Fine-Tec          System Intel Pentium 200MHz MMX w/15" monitor, speakers                   1        1,080.00
                                        and sound card
   48      7/6/98   CAT Technology    U80 entire system/monitor                                                 1       13,383.25
   49      7/7/98   Fine-Tec          System Intel Pentium II 300 MHz, 128MB, 3.2 GB W/17" mon                  1        1,670.00
   50     7/16/98   Fine-Tec          System Intel Pentium II 300 MHz                                           1        1,260.00
   51     7/27/98   Fine-Tec          System Intel Pentium II 300 MHz w/KFC 14" SVGA Monitor                    3        3,300.00

   52                                 Intentionally left blank
   53     7/31/98   Web Zone          HP Vectra VL7 P33 MHZ                                                     4        7,892.00
   54     7/31/98   Web Zone          HP Vectra VL7 P33 MHZ                                                     2        4,146.00
   55     7/31/98   Keep It Simple    Toshiba Tecra 550 CDT Notebook w/accessories                              1        4,850.00
   56     7/31/98   Keep It Simple    Toshiba Tecra 550 CDT Notebook w/accessories                              1        5,245.00
   57     8/12/98   Fine Tec          Toshiba Tecra 550 CDT Laptop Computer w/accessories                       1        4,055.00
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
          Purchase                                                                                          Unit
Item #    Date      Vendor            Description                                                           Price       Subtotal
------------------------------------------------------------------------------------------------------------------------------------
<S>       <C>       <C>               <C>                                                                   <C>         <C>
Computers
   1      11/25/97  Fine Tec          Pentium II 233MHz 32MB, 4.3 GB System w/17" monitor                   1,910.00     1,910.00
   2      12/4/97   Fine Tec          Pentium 200 MHZ MMX, 32MB, 4.3GB, w/17" monitor                       1,600.00     1,600.00
   3      12/8/97   Fine-Tec          Pentium 200 MHZ MMX, 32MB, 4.3GB                                      1,100.00     2,200.00
   3      12/8/97   Fine-Tec          Acer 17" monitor                                                        500.00     1,000.00
   4      12/8/97   Fine-Tec          Pentium II 233 MHz System, 32MB, 4.3 GB, w/17" monitor                1,975.00     1,975.00
   5      12/16/97  Fine-Tec          Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor              1,085.00     1,085.00
   6      12/19/97  Fine-Tec          Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor                980.00       980.00
   7      12/19/97  Fine-Tec          Pentium 150MHz PCI System w/accessories, 16MB, 2.1GB                  1,410.00     1,410.00
                                        17" monitor
   8      12/22/97  EGIS              Sun Spark System 32M/2 1G/15" color/turbo                             3,971.00     3,971.00
   9      12/23/97  Fine-Tec          Pentium 200 MHZ MMX                                                   1,100.00     2,200.00
   9      12/23/97  Fine-Tec          Viewsonic 17" monitor                                                   500.00     1,000.00
   10      1/6/98   Fine-Tec          Pentium 150 MHZ PCI System 32mb, 2.1 gb                               1,300.00     2,660.00
   10      1/6/98   Fine-Tec          Acer 17" monitor                                                          0.00         0.00
   11     1/19/98   Fine-Tec          Pentium 200 MHZ MMX NT System 32MB, 4.3GB/W 17" MON                   1,670.00     1,670.00
   12     1/19/98   Fine-Tec          Pentium 200 MHZ MMX WIN 95 System 32MB, 4.3GB/W 17" MON               1,645.00     1,645.00
   14      2/4/98   Keep it Simple    ASUS PCI/ISA 512K IDE/10 Motherboard                                  1,425.00     1,425.00
   15      2/4/98   Keep it Simple    ASUS PCI/ISA 512K IDE/10 Motherboard                                  1,300.00     1,300.00
   16      2/6/98   Fine-Tec          Pentium II 266 MHz System 32mb, 4.3gb w/20" MON                       2,520.00     2,520.00
   17     2/14/98   Acclaim Technolo  Ultra5 270 MHz 4.3 GB 128MB w/solaris 2.5 media                       4,200.25     4,200.25
   18     2/27/98   Fine-Tec          Pentium 200 MHz MMX Complete System 16MB/ 3.2 GB                      1,400.00     5.600.00
   18     2/27/98   Fine-Tec          Acer 17" monitor                                                          0.00         0.00
   18     2/27/98   Fine-Tec          Acer 17" monitor                                                          0.00         0.00
   19     2/27/98   Fine-Tec          Pentium 200 MHZ MMX Complete Server 16MB, 3.2GB                       1,795.00     1,795.00
   20      3/6/98   Fine-Tec          Pentium 133 MHz PCI System                                              850.00     3,400.00
   20      3/6/98   Fine-Tec          14" KFC Smile Monitor                                                     0.00         0.00
   21      3/6/98   Software Dev. Sys Monitor Debugger for Power PC                                         3,960.00     3,960.00
   22      3/9/98   Fine-Tec          Pentium 200 MHz MMX Complete System, 32MB, 3.1 GB w/17"               1,400.00     1,400.00
                                        monitor
   23      3/9/98   Acclaim Technolo  Ultra5 270 MHz 4.3 GB 128MB W/solaris 2.5 media. w/17"                4,200.25     4,200.25
                                        monitor
   24     3/19/98   Keep It Simple    HP Surestore 500DE 4GB Int Dat Drive                                    995.00       995.00
   25     3/24/98   Fine-Tec          Pentium 200 MHZ MMX Complete System                                     985.00     3,940.00
   25     3/24/98   Fine-Tec          14" kfc Smile Monitor                                                     0.00         0.00
   26     4/23/98   Fine-Tec          System Intel Pentium 233MHz MMX w/14" monitor                           985.00     1,970.00
   26     4/23/98   Fine-Tec          14" KFC Monitor                                                           0.00         0.00
   27     4/23/98   Fine-Tec          System Intel Pentium II 300MHz                                        1,145.00     2,290.00
   28     4/29/98   Fine-Tec          System Intel Pentium 233MHz MMX                                       1,025.00     4,100.00
   28     4/29/98   Fine-Tec          17" KFC MONITOR                                                           0.00         0.00
   29      5/4/98   Fine-Tec          System Intel Pentium II 233MHz W/17" monitor and drive                1,525.00     1,525.00
   30      5/6/98   Dell Computer     Dell Dimension XPS R400MHz Pentium II Base, 256 MB. 4GB               3,752.00     3,752.00
                                        w/17" monitor
   31     5/19/98   Fine-Tec          System Intel Pentium 200MHz MMX w/14" monitor                           975.00     1,950.00
   32     5/21/98   Fine-Tec          System Intel Pentium 75MHz w/14" monitor and APC                        970.00       970.00
   33     5/26/98   Fine-Tec          System Intel Pentium 233MHz MMX w/14" monitor                         1,015.00     2,030.00
   34      6/3/98   Fine-Tec          System Intel Pentium 75 MHz                                             620.00       620.00
   35      6/3/98   Fine-Tec          System Intel Pentium 200MHz MMX                                         900.00       900.00
   36      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/monitor                               965.00     1,930.00
  36/A     6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX                                         800.00       800.00
   38      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/14" SVGA Monitor, MS                1,060.00     1,060.00
                                        Win 95 on C
   39      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/Acer 15" SVGA Monitor,              1,190.00     1,190.00
                                        MSNT 4.0
   40     6/17/98   Fine-Tec          System Intel Pentium II 266MHz w/Viewsonic G771, 17"                  1,580.00     1,580.00
                                        Monitor
   41     6/23/98   Fine-Tec          System Intel Pentium II 300MHz w/Acer SVGA Monitor                    1,435.00     2,870.00
   42     6/23/98   Fine-Tec          System Intel Pentium II 233MHz MMX w/Acer 15" SVGA                    1,120.00     2,240.00
                                        Monitor
   43     6/23/98   Fine-Tec          System Intel Pentium 233MHz MMX w/Viewsonic 17" SVGA                  1,355.00     1,355.00
                                        Monitor
   44     6/25/98   Fine-Tec          System Intel Pentium 233MHz MMX w/17" monitor, sound                  1,322.00     1,322.00
                                        card and mouse
   45     6/27/98   Fine-Tec          System Intel Pentium II 300MHz w/17" & 15" monitor and                2,079.00     2,079.00
                                        accessories
   47      7/2/98   Fine-Tec          System Intel Pentium 200MHz MMX w/15" monitor, speakers               1,080.00     1,080.00
                                        and sound card
   48      7/6/98   CAT Technology    U80 entire system/monitor                                            13,383.25    13,383.25
   49      7/7/98   Fine-Tec          System Intel Pentium II 300 MHz, 128MB, 3.2 GB W/17" mon              1,670.00     1,670.00
   50     7/16/98   Fine-Tec          System Intel Pentium II 300 MHz                                       1,260.00     1,260.00
   51     7/27/98   Fine-Tec          System Intel Pentium II 300 MHz w/KFC 14" SVGA Monitor                1,100.00     3,300.00

   52                                 Intentionally left blank
   53     7/31/98   Web Zone          HP Vectra VL7 P33 MHZ                                                 1,973.00     7,892.00
   54     7/31/98   Web Zone          HP Vectra VL7 P33 MHZ                                                 2,073.00     4,148.00
   55     7/31/98   Keep It Simple    Toshiba Tecra 550 CDT Notebook w/accessories                          4,850.00     4,850.00
   56     7/31/98   Keep It Simple    Toshiba Tecra 550 CDT Notebook w/accessories                          5,245.00     5,245.00
   57     8/12/98   Fine Tec          Toshiba Tecra 550 CDT Laptop Computer w/accessories                   4,055.00     4,055.00
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
          Purchase                                                                                      Freight, Tax      Invoice
Item #    Date      Vendor            Description                                                       Instal & othe    Total
------------------------------------------------------------------------------------------------------------------------------------
<S>       <C>       <C>               <C>                                                               <C>               <C>
Computers
   1      11/25/97  Fine Tec          Pentium II 233MHz 32MB, 4.3 GB System w/17" monitor                     157.58     2,067.58
   2      12/4/97   Fine Tec          Pentium 200 MHZ MMX, 32MB, 4.3GB, w/17" monitor                         132.00     1,732.00
   3      12/8/97   Fine-Tec          Pentium 200 MHZ MMX, 32MB, 4.3GB                                        264.00     2,484.00
   3      12/8/97   Fine-Tec          Acer 17" monitor                                                                   1,000.00
   4      12/8/97   Fine-Tec          Pentium II 233 MHz System, 32MB, 4.3 GB, w/17" monitor                  162.94     2,137.94
   5      12/16/97  Fine-Tec          Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor                 89.51     1,174.51
   6      12/19/97  Fine-Tec          Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor                 80.85     1,060.85
   7      12/19/97  Fine-Tec          Pentium 150MHz PCI System w/accessories, 16MB, 2.1GB                    116.33     1,526.33
                                        17" monitor
   8      12/22/97  EGIS              Sun Spark System 32M/2 1G/15" color/turbo                               327.61     4,298.61
   9      12/23/97  Fine-Tec          Pentium 200 MHZ MMX                                                     264.00     2,464.00
   9      12/23/97  Fine-Tec          Viewsonic 17" monitor                                                              1,000.00
   10      1/6/98   Fine-Tec          Pentium 150 MHZ PCI System 32mb, 2.1 gb                                 219.45     2,879.45
   10      1/6/98   Fine-Tec          Acer 17" monitor                                                          0.00         0.00
   11     1/19/98   Fine-Tec          Pentium 200 MHZ MMX NT System 32MB, 4.3GB/W 17" MON                     137.78     1,807.78
   12     1/19/98   Fine-Tec          Pentium 200 MHZ MMX WIN 95 System 32MB, 4.3GB/W 17" MON                 135.71     1,780.71
   14      2/4/98   Keep it Simple    ASUS PCI/ISA 512K IDE/10 Motherboard                                    137.57     1,562.57
   15      2/4/98   Keep it Simple    ASUS PCI/ISA 512K IDE/10 Motherboard                                    127.25     1,427.25
   16      2/6/98   Fine-Tec          Pentium II 266 MHz System 32mb, 4.3gb w/20" MON                         207.90     2,727.90
   17     2/14/98   Acclaim Technolo  Ultra5 270 MHz 4.3 GB 128MB w/solaris 2.5 media                         369.20     4,569.45
   18     2/27/98   Fine-Tec          Pentium 200 MHz MMX Complete System 16MB/ 3.2 GB                        462.00     6,062.00
   18     2/27/98   Fine-Tec          Acer 17" monitor                                                          0.00         0.00
   18     2/27/98   Fine-Tec          Acer 17" monitor                                                          0.00         0.00
   19     2/27/98   Fine-Tec          Pentium 200 MHZ MMX Complete Server 16MB, 3.2GB                         148.08     1,943.08
   20      3/6/98   Fine-Tec          Pentium 133 MHz PCI System                                              280.50     3,680.50
   20      3/6/98   Fine-Tec          14" KFC Smile Monitor                                                     0.00         0.00
   21      3/6/98   Software Dev. Sys Monitor Debugger for Power PC                                           331.80     4,291.80
   22      3/9/98   Fine-Tec          Pentium 200 MHz MMX Complete System, 32MB, 3.1 GB w/17"                 115.50     1,515.50
                                        monitor
   23      3/9/98   Acclaim Technolo  Ultra5 270 MHz 4.3 GB 128MB W/solaris 2.5 media. w/17"                  382.92     4,583.17
                                        monitor
   24     3/19/98   Keep It Simple    HP Surestore 500DE 4GB Int Dat Drive                                    142.72     1,137.12
   25     3/24/98   Fine-Tec          Pentium 200 MHZ MMX Complete System                                     325.05     4,265.05
   25     3/24/98   Fine-Tec          14" kfc Smile Monitor                                                     0.00         0.00
   26     4/23/98   Fine-Tec          System Intel Pentium 233MHz MMX w/14" monitor                           162.54     2,132.54
   26     4/23/98   Fine-Tec          14" KFC Monitor                                                           0.00         0.00
   27     4/23/98   Fine-Tec          System Intel Pentium II 300MHz                                          188.92     2,478.92
   28     4/29/98   Fine-Tec          System Intel Pentium 233MHz MMX                                         338.28     4,438.28
   28     4/29/98   Fine-Tec          17" KFC MONITOR                                                           0.00         0.00
   29      5/4/98   Fine-Tec          System Intel Pentium II 233MHz W/17" monitor and drive                  125.81     1,650.81
   30      5/6/98   Dell Computer     Dell Dimension XPS R400MHz Pentium II Base, 256 MB. 4GB                 309.56     4,061.56
                                        w/17" monitor
   31     5/19/98   Fine-Tec          System Intel Pentium 200MHz MMX w/14" monitor                           160.88     2,110.88
   32     5/21/98   Fine-Tec          System Intel Pentium 75MHz w/14" monitor and APC                         80.03     1,050.03
   33     5/26/98   Fine-Tec          System Intel Pentium 233MHz MMX w/14" monitor                           167.48     2,197.48
   34      6/3/98   Fine-Tec          System Intel Pentium 75 MHz                                              51.15       671.15
   35      6/3/98   Fine-Tec          System Intel Pentium 200MHz MMX                                          74.26       974.25
   36      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/monitor                               159.23     2,069.23
  36/A     6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX                                          66.00       866.00
   38      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/14" SVGA Monitor, MS                   87.45     1,147.45
                                        Win 95 on C
   39      6/4/98   Fine-Tec          System Intel Pentium 200MHz MMX w/Acer 15" SVGA Monitor,                 98.18     1,288.18
                                        MSNT 4.0
   40     6/17/98   Fine-Tec          System Intel Pentium II 266MHz w/Viewsonic G771, 17"                    130.35     1,710.35
                                        Monitor
   41     6/23/98   Fine-Tec          System Intel Pentium II 300MHz w/Acer SVGA Monitor                      236.78     3,106.75
   42     6/23/98   Fine-Tec          System Intel Pentium II 233MHz MMX w/Acer 15" SVGA                      184.79     2,424.79
                                        Monitor
   43     6/23/98   Fine-Tec          System Intel Pentium 233MHz MMX w/Viewsonic 17" SVGA                    111.79     1,466.79
                                        Monitor
   44     6/25/98   Fine-Tec          System Intel Pentium 233MHz MMX w/17" monitor, sound                    109.07     1,431.07
                                        card and mouse
   45     6/27/98   Fine-Tec          System Intel Pentium II 300MHz w/17" & 15" monitor and                  171.52     2,250.52
                                        accessories
   47      7/2/98   Fine-Tec          System Intel Pentium 200MHz MMX w/15" monitor, speakers                  89.10     1,169.10
                                        and sound card
   48      7/6/98   CAT Technology    U80 entire system/monitor                                             2,535.03    15,918.28
   49      7/7/98   Fine-Tec          System Intel Pentium II 300 MHz, 128MB, 3.2 GB W/17" mon                137.78     1,807.78
   50     7/16/98   Fine-Tec          System Intel Pentium II 300 MHz                                         103.95     1,383.95
   51     7/27/98   Fine-Tec          System Intel Pentium II 300 MHz w/KFC 14" SVGA Monitor                  272.25     3,572.25

   52                                 Intentionally left blank
   53     7/31/98   Web Zone          HP Vectra VL7 P33 MHZ                                                   651.09     8,543.09
   54     7/31/98   Web Zone          HP Vectra VL7 P33 MHZ                                                   342.05     4,488.05
   55     7/31/98   Keep It Simple    Toshiba Tecra 550 CDT Notebook w/accessories                            425.15     5,276.15
   56     7/31/98   Keep It Simple    Toshiba Tecra 550 CDT Notebook w/accessories                            457.75     5,702.75
   57     8/12/98   Fine Tec          Toshiba Tecra 550 CDT Laptop Computer w/accessories                     334.54     4,389.54
</TABLE>

<PAGE>

                                   EXHIBIT B
<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
-----------------------------------------------------------------------------------------------------------------------------------

Item #   Purchase
          Date       Vendor            Description                                                               Invoice #
-----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>         <C>              <C>                                                                    <C>
59       8/12/98    Fine Tec           HP Vectra VL7 workstation NT OS w/15" monitor                                579859
100      8/28/98    Fine Tec           Compaq presario 1650 Laptop                                                  579929
101      8/31/98    Fine Tec           HP Omnibook 2100 Laptop                                                      579938
102      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHz Pentium II MiniTower base                      147305692
103      2/10/98    Dell Computer...   Dell Dimension XPA 333 MHz Pentium II miniTower base                      143352615
104      1/28/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache               140797044
105      2/15/98    Keep it Simple     Toshiba Tecra System w/notebook                                               32376
106      3/12/98    Dell Computer...   Dell UltraScan 1600HS. Model 1626 HT w/21" monitor                        149009380
107      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHx Pentium II MiniTower base                      147305692
108      6/18/98    Dell Computer...   Dell Latitude CPi266XT LAPTOP                                             164296832
109      6/18/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                   18748423
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base                                162079073
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                  162079073
111      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/19" monitor                  175269828
112      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                  173850405
113      8/12/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                  174016808
114       9/4/98    Dell Computer...   Latitude CPI233ST LAPTOP w/acessories                                     179258391
115     10/13/98    Dell Computer...   Dell Dimension V350 Pentium II                                            188997714
116      1/20/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon            15794502
117      1/20/98    Dell Computer...   Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon                  15794629
</TABLE>

<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
------------------------------------------------------------------------------------------------------------------------------------

Item #   Purchase
          Date       Vendor            Description                                                                Serial #
-----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>         <C>              <C>                                                               <C>
59       8/12/98    Fine Tec           HP Vectra VL7 workstation NT OS w/15" monitor                    010072AV51517A7/CN83007453
100      8/28/98    Fine Tec           Compaq presario 1650 Laptop                                          1V88BY667BRX/667BRF
101      8/31/98    Fine Tec           HP Omnibook 2100 Laptop                                                   TW827D0313
102      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHz Pentium II MiniTower base                     032HW/8282542
103      2/10/98    Dell Computer...   Dell Dimension XPA 333 MHz Pentium II miniTower base                         SN/SN
104      1/28/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache                  SN/SN
105      2/15/98    Keep it Simple     Toshiba Tecra System w/notebook                                            S58021606
106      3/12/98    Dell Computer...   Dell UltraScan 1600HS. Model 1626 HT w/21" monitor                       EF2J9/2733247
107      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHx Pentium II MiniTower base                         SN/SN
108      6/18/98    Dell Computer...   Dell Latitude CPi266XT LAPTOP                                                Z2HQD
109      6/18/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                     SN/SN
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base                                   EQVW1
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor          ER7R8-ER7R9/8104035/B308874
111      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/19" monitor               FWSNL/59119-C8Q25
112      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                 FWQBV/8287490
113      8/12/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                  FVLOS/8283600
114       9/4/98    Dell Computer...   Latitude CPI233ST LAPTOP w/acessories                                     ZBQPT & ZBQPX
115     10/13/98    Dell Computer...   Dell Dimension V350 Pentium II                                               GT22H
116      1/20/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon       9QNJX/75155385H76491
117      1/20/98    Dell Computer...   Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon                    SN/SN
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
-----------------------------------------------------------------------------------------------------------------------------------

Item #   Purchase                                                                                               CDO
          Date       Vendor            Description                                                            Asset Tag    Quantity
-----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>         <C>              <C>                                                                     <C>             <C>
59       8/12/98    Fine Tec           HP Vectra VL7 workstation NT OS w/15" monitor                                           1
100      8/28/98    Fine Tec           Compaq presario 1650 Laptop                                                             2
101      8/31/98    Fine Tec           HP Omnibook 2100 Laptop                                                                 1
102      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHz Pentium II MiniTower base                                    1
103      2/10/98    Dell Computer...   Dell Dimension XPA 333 MHz Pentium II miniTower base                     146137/138     1
104      1/28/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache              146139/140     1
105      2/15/98    Keep it Simple     Toshiba Tecra System w/notebook                                                         1
106      3/12/98    Dell Computer...   Dell UltraScan 1600HS. Model 1626 HT w/21" monitor                                      1
107      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHx Pentium II MiniTower base                       146141       1
108      6/18/98    Dell Computer...   Dell Latitude CPi266XT LAPTOP                                                           1
109      6/18/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                 146142/143     1
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base                                              1
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                                2
111      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/19" monitor                                1
112      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                                1
113      8/12/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                                1
114       9/4/98    Dell Computer...   Latitude CPI233ST LAPTOP w/acessories                                                   2
115     10/13/98    Dell Computer...   Dell Dimension V350 Pentium II                                                          1
116      1/20/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon                         1
117      1/20/98    Dell Computer...   Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon                146144/145     1
</TABLE>

<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
-----------------------------------------------------------------------------------------------------------------------------------

Item #   Purchase                                                                                           Financed     Unit
          Date       Vendor            Description                                                           Amount      Price
-----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>         <C>              <C>                                                                   <C>          <C>
59       8/12/98    Fine Tec           HP Vectra VL7 workstation NT OS w/15" monitor                         3,718.00     3,718.00
100      8/28/98    Fine Tec           Compaq presario 1650 Laptop                                           6,060.00     3,030.00
101      8/31/98    Fine Tec           HP Omnibook 2100 Laptop                                               5,040.00     5,040.00
102      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHz Pentium II MiniTower base                  3,822.00     3,822.00
103      2/10/98    Dell Computer...   Dell Dimension XPA 333 MHz Pentium II miniTower base                  3,405.00     3,405.00
104      1/28/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache           4,188.00     4,188.00
105      2/15/98    Keep it Simple     Toshiba Tecra System w/notebook                                       5,088.00     5,088.00
106      3/12/98    Dell Computer...   Dell UltraScan 1600HS. Model 1626 HT w/21" monitor                    1,299.00     1,299.00
107      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHx Pentium II MiniTower base                  3,822.00     3,822.00
108      6/18/98    Dell Computer...   Dell Latitude CPi266XT LAPTOP                                         3,951.00     3,951.00
109      6/18/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor              2,798.00     2,798.00
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base                            2,102.00     2,102.00
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor              5,032.00     2,516.00
111      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/19" monitor              2,882.00     2,882.00
112      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor              2,214.00     2,214.00
113      8/12/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor              2,766.00     2,766.00
114       9/4/98    Dell Computer...   Latitude CPI233ST LAPTOP w/acessories                                 6,116.00     4,058.00
115     10/13/98    Dell Computer...   Dell Dimension V350 Pentium II                                        1,803.00     1,803.00
116      1/20/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon       4,188.00     4,188.00
117      1/20/98    Dell Computer...   Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon             3,305.00     3,305.00
                                                                                                           -----------  -----------
                                                                                                           219,056.75   174,260.76
                                                                                                           -----------  -----------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
-----------------------------------------------------------------------------------------------------------------------------------

Item #   Purchase
          Date       Vendor            Description                                                              Subtotal
-----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>         <C>              <C>                                                                      <C>
59       8/12/98    Fine Tec           HP Vectra VL7 workstation NT OS w/15" monitor                             3,718.00
100      8/28/98    Fine Tec           Compaq presario 1650 Laptop                                               6,060.00
101      8/31/98    Fine Tec           HP Omnibook 2100 Laptop                                                   5,040.00
102      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHz Pentium II MiniTower base                      3,822.00
103      2/10/98    Dell Computer...   Dell Dimension XPA 333 MHz Pentium II miniTower base                      3,405.00
104      1/28/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache               4,188.00
105      2/15/98    Keep it Simple     Toshiba Tecra System w/notebook                                           5,088.00
106      3/12/98    Dell Computer...   Dell UltraScan 1600HS. Model 1626 HT w/21" monitor                        1,299.00
107      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHx Pentium II MiniTower base                      3,822.00
108      6/18/98    Dell Computer...   Dell Latitude CPi266XT LAPTOP                                             3,951.00
109      6/18/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                  2,798.00
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base                                2,102.00
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                  5,032.00
111      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/19" monitor                  2,882.00
112      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                  2,214.00
113      8/12/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor                  2,768.00
114       9/4/98    Dell Computer...   Latitude CPI233ST LAPTOP w/acessories                                     8,116.00
115     10/13/98    Dell Computer...   Dell Dimension V350 Pentium II                                            1,603.00
116      1/20/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon           4,188.00
117      1/20/98    Dell Computer...   Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon                 3,305.00
                                                                                                               ----------
                                                                                                               212,058.75
                                                                                                               ----------
</TABLE>

<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
-----------------------------------------------------------------------------------------------------------------------------------

Item #   Purchase                                                                                         Freight, Tax Invoice
          Date       Vendor            Description                                                        Instal & Other Total
-----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>         <C>              <C>                                                                 <C>          <C>
59       8/12/98    Fine Tec           HP Vectra VL7 workstation NT OS w/15" monitor                        306.74      4,024.74
100      8/28/98    Fine Tec           Compaq presario 1650 Laptop                                          660.85      6,720.85
101      8/31/98    Fine Tec           HP Omnibook 2100 Laptop                                              453.75      5,493.75
102      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHz Pentium II MiniTower base                 423.59      4,245.59
103      2/10/98    Dell Computer...   Dell Dimension XPA 333 MHz Pentium II miniTower base                 389.18      3,794.18
104      1/28/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache          453.77      4,541.77
105      2/15/98    Keep it Simple     Toshiba Tecra System w/notebook                                      434.78      5,522.78
106      3/12/98    Dell Computer...   Dell UltraScan 1600HS. Model 1626 HT w/21" monitor                   115.42      1,414.42
107      3/11/98    Dell Computer...   Dell Dimension XPS 333 MHx Pentium II MiniTower base                 423.59      4,245.59
108      6/18/98    Dell Computer...   Dell Latitude CPi266XT LAPTOP                                        366.02      4,317.02
109      6/18/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor             295.80      3,093.80
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base                           273.42      2,375.42
110       6/5/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor             615.14      5,647.14
111      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/19" monitor             378.52      3,260.52
112      8/14/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor             280.09      2,494.09
113      8/12/98    Dell Computer...   Dell Dimension XPS R400MHz Pentium II Base w/17" monitor             228.38      2,996.38
114       9/4/98    Dell Computer...   Latitude CPI233ST LAPTOP w/acessories                                803.82      8,919.82
115     10/13/98    Dell Computer...   Dell Dimension V350 Pentium II                                       246.20      2,049.20
116      1/20/98    Dell Computer...   Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon      453.77      4,641.77
117      1/20/98    Dell Computer...   Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon            380.92      3,685.92
                                                                                                         ---------    ----------
                                                                                                         21,464.75    240,521.50
                                                                                                         ---------    ----------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
Furniture & Fixtures
-----------------------------------------------------------------------------------------------------------------------------------

Item #        Purchase
               Date       Vendor               Description                                    Invoice #       Serial #    Quantity
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>       <C>                  <C>                                             <C>             <C>          <C>
 60            2/19/98    Smart Interiors      BC Series BC 44                                  51115           N/A         10
 61            2/23/98    Smart Interiors      Used Herman Miller Workstation                   21736           N/A         20
</TABLE>

<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
Furniture & Fixtures
-----------------------------------------------------------------------------------------------------------------------------------

Item #        Purchase                                                          Financed   Unit             Freight Tax  Acquisition
               Date       Vendor               Description                      Amount     Price  Subtotal  Installation Price
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>       <C>                  <C>                               <C>         <C>    <C>       <C>           <C>
 60            2/19/98    Smart Interiors      BC Series BC 44                  1,500.00   150.00    1,500.00    327.00    1,827.00
 61            2/23/98    Smart Interiors      Used Herman Miller Workstation  19,150.00   957.50   19,150.00  1,729.88   20,879.88
                                                                                ---------------------------------------------------
                                                                                20,650,00  1,107.50 20,650.00  2,056.88   22,706.88
                                                                                ---------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
Equipment
-----------------------------------------------------------------------------------------------------------------------------------
Item #        Purchase                                                                                                CDO
               Date       Vendor               Description                                    Invoice #    Serial #   TAG  Quantity
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>       <C>                  <C>                                             <C>         <C>        <C>    <C>
 62          12/11/97     Atlas                ASM, PCB, ACE860 MH, Darwin                      754401      N/A                1
 63          12/12/97     Cinco                NetXRay Pro/100D-110V TEST EQUIP                 970931      N/A                1
 64            1/6/98     Micro Warehouse      Printer Hp Laserjet 4000 TN                                USNC025827           1
 65           2/20/98     Keep it Simple       Tektronics Phaser 560 A Color Printer             30068      S/N      146146    1
 66           3/30/98     Fry's                Linskys 10 Port                                            740000047            1
 67           5/22/98     MBA of California    FAX, LDC-780                                     06227A    RT47006166           1
 68           6/16/98     Hewlett Packard      Logic Analysis System                           75R8968    US37210720           1
 69           7/20/98     Fine Tec             Neigear 100T 16 Port Fast Ehernet Hub            579703      N/A                1
 70           8/12/98     Fine Tec             3Com Gigabit Etherlink Server Adapter            579858    7ZAV515DA7           1
 71           8/13/98     EIS                  XGA 1024X768 Polysi Projector w/case and lamp    181685    GB402838             1
 72           6/23/96     Keep it Simple       HP Laserjet 4000TN                                31720    USMC099393           1
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
Equipment
-----------------------------------------------------------------------------------------------------------------------------------

Item #       Purchase                                                           Financed   Unit             Freight Tax  Acquisition
              Date      Vendor             Description                          Amount     Price   Subtotal Installation Price
-----------------------------------------------------------------------------------------------------------------------------------
<S>       <C>            <C>               <C>                                  <C>       <C>       <C>       <C>         <C>
62          12/11/97    Atlas             ASM, PCB, ACE860 MH, Darwin            1,289.00  1,289.00  1,289.00   114.90     1,403.90
63          12/12/97    Cinco             NetXRay Pro/100D-110V TEST EQUIP       4,498.00  4,498.00  4,498.00    348.6     4,846.60
64            1/6/98    Micro Warehouse   Printer Hp Laserjet 4000 TN            1,629.00  1,629.00  1,529.00    77.45     1,706.45
65           2/20/98    Keep it Simple    Tektronics Phaser 560 A Color Printer  3,990.00  3,990.00  3,990.00   329.18     4,319.18
66           3/30/98    Fry's             Linskys 10 Port                          649.00    649.00    649.00    53.54       702.54
67           5/22/98    MBA of California FAX, LDC-760                           1,695.00  1,695.00  1,695.00   139.54     1,834.84
68           6/16/98    Hewlett Packard   Logic: Analysis System                22,003.50 22,003.50 22,003.50 1,815.28    23,616.78
69           7/20/98    Fine Tec          Neigear 100T 16 Port East Ehernet Hub    645.00    645.00    649.00 1,673.72     2,318.72
70           8/12/98    Fine Tec          3Com Gigabit Etherlink Server Adapter    680.00    680.00    680.00    56.10       736.10
71           8/13/98    EIS               XGA 1024X768 Polysi Projector w/case   8,500.00  8,500.00  8,500.00   701.25     9,201.25
                                           and lamp
72           6/23/98    Keep it Simple    HP Laserjet 4000TN                     1,640.00  1,640.00  1,640.00   150.30     1,790.30
                                                                                ---------------------------------------------------
                                                                                47,218.50 47,218.50 47,218.00 5,460.16    52,678.88
                                                                                ---------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
Telephone Equipment
-----------------------------------------------------------------------------------------------------------------------------------

Item #        Purchase
               Date       Vendor           Description                   Invoice #  Serial #  Quantity    Financed     Unit
                                                                                                          Amount       Price
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>         <C>               <C>                              <C>      <C>       <C>         <C>        <C>
73           1/28/98     Germfire Corp     Toshiba Straia OK-96 PCTU4      1588     N/A         1          5,000.00   5,000.00
                                                                                                        ----------------------------
                                                                                                           5,000.00   5,000.00
                                                                                                        ----------------------------
</TABLE>

<TABLE>
<CAPTION>
Telephone Equipment
-----------------------------------------------------------------------------------------------------------------------------------

Item #        Purchase
               Date       Vendor           Description                                              Freight, Tax        Acquisition
                                                                                    Subtotal        Installation        Price
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>         <C>               <C>                                       <C>              <C>              <C>
73           1/28/98     Germfire Corp     Toshiba Straia OK-96 PCTU4               5,000.00        5,000.00            5,412.50
                                                                                 ---------------------------------------------------
                                                                                    5,000.00        5,000.00            5,412.50
                                                                                 ---------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
Software
-----------------------------------------------------------------------------------------------------------------------------------

             Purchase
Item#          Date       Vendor               Description                                    Invoice #     Serial #      Quantity
-----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                  <C>                                              <C>         <C>            <C>
46            6/29/98    Fine Tec              MS SQL 6.5 Server with 10 Client               679751         N/A             1
74             2/5/98    Keep It Simple        Goldmine V3.2 SW F/W95 5 User 1 Doc CD          29542         N/A             1
75            2/11/98    Keep It Simple        Adobe Framemaker V5.5 w/acrobat CD W95          29926         N/A             1
76            2/27/98    Diablo Data Inc.      C Cross Complier for PPC, ver 4.1A:1 SLW95CPPC             33400,401          2
77            2/28/98    Accelerated Techn     NU930107 Nucleus Plus System                                  N/A             1
78            3/19/98    Keep It Simple        Adobe Pagemaker V6.5 w/acrobat CD w95                         N/A             1
79            4/30/98    Agranat System...     EMWEB Complier Code and Server Code             30412         N/A             1
80            5/15/98    DSCI                  Multi-User System Manager - 3 User License     180520         N/A             1
81            5/15/98    DSCI                  Additional User Blocks                                        N/A             1
82            5/15/98    DSCI                  General Ledger w/FRx Advanced                                 N/A             1
83            5/15/98    DSCI                  Accounts Payable                                              N/A             1
</TABLE>

<TABLE>
<CAPTION>
Software
-----------------------------------------------------------------------------------------------------------------------------------

             Purchase                                                                           Financed      Unit
Item#          Date       Vendor               Description                                      Amount        Price      Subtotal
-----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                  <C>                                              <C>           <C>          <C>
46            6/29/98    Fine Tec              MS SQL 6.5 Server with 10 Client                  1,670.00    1,670.00      1,670.00
74             2/5/98    Keep It Simple        Goldmine V3.2 SW F/W95 5 User 1 Doc CD              725.00      725.00        725.00
75            2/11/98    Keep It Simple        Adobe Framemaker V5.5 w/acrobat CD W95              745.00      745.00        745.00
76            2/27/98    Diablo Data Inc.      C Cross Complier for PPC, ver 4.1A:1 SLW95CPPC    3,980.00    1,980.00      3,960.00
77            2/28/98    Accelerated Techn     NU930107 Nucleus Plus System                     22,490.00   22,490.00     22,490.00
78            3/19/98    Keep It Simple        Adobe Pagemaker V6.5 w/acrobat CD w95               595.00      595.00        595.00
79            4/30/98    Agranat System...     EMWEB Complier Code and Server Code              25,000.00   25,000.00     25,000.00
80            5/15/98    DSCI                  Multi-User System Manager - 3 User License        2,495.00    2,495.00      2,495.00
81            5/15/98    DSCI                  Additional User Blocks                            2,495.00    2,495.00      2,495.00
82            5/15/98    DSCI                  General Ledger w/FRx Advanced                     4,995.00    4,995.00      4,995.00
83            5/15/98    DSCI                  Accounts Payable                                  1,595.00    1,595.00      1,595.00
</TABLE>

<TABLE>
<CAPTION>
Software
-----------------------------------------------------------------------------------------------------------------------------------
             Purchase                                                                           Freight Tax      Acquisition
Item#          Date       Vendor               Description                                      Installation        Price
-----------------------------------------------------------------------------------------------------------------------------------
<S>          <C>        <C>                  <C>                                                 <C>               <C>
46            6/29/98    Fine Tec              MS SQL 6.5 Server with 10 Client                     137.77          1,807.77
74             2/5/98    Keep It Simple        Goldmine V3.2 SW F/W95 5 User 1 Doc CD                64.82            789.82
75            2/11/98    Keep It Simple        Adobe Framemaker V5.5 w/acrobat CD W95                64.47            809.47
76            2/27/98    Diablo Data Inc.      C Cross Complier for PPC, ver 4.1A:1 SLW95CPPC       336.70          4,296.70
77            2/28/98    Accelerated Techn     NU930107 Nucleus Plus System                       1,885.43         24,375.43
78            3/19/98    Keep It Simple        Adobe Pagemaker V6.5 w/acrobat CD w95                 69.10            664.10
79            4/30/98    Agranat System...     EMWEB Complier Code and Server Code               25,000.00         25,000.00
80            5/15/98    DSCI                  Multi-User System Manager - 3 User License           205.84          2,700.84
81            5/15/98    DSCI                  Additional User Blocks                               205.84          2,700.84
82            5/15/98    DSCI                  General Ledger w/FRx Advanced                        412.09          5,407.09
83            5/15/98    DSCI                  Accounts Payable                                     131.60          1,726.60
</TABLE>

<PAGE>

                                    EXHIBIT B

<TABLE>
<CAPTION>

NetScreen Technologies, Inc.
PLB LOAN ASSETS
------------------------------------------------------------------------------------------------------------------------------------
        Purchase                                                                                    CDO                  Financed
Item #    Date     Vendor    Description                                Invoice #     Serial #    Asset Tag    Quantity   Amount
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>        <C>         <C>                                      <C>          <C>          <C>          <C>        <C>
  84     5/15/98   DSCI      Accounts Receivable                                       N/A                         1      1,595.00
  85     5/15/98   DSCI      Bank Book                                                 N/A                         1      1,395.00
  86     5/15/98   DSCI      Sales Order                                               N/A                         1      1,595.00
  87     5/15/98   DSCI      Purchase Order                                            N/A                         1      1,595.00
  88     5/15/98   DSCI      Inventory                                                 N/A                         1      1,595.00
  89     5/15/98   DSCI      Btrieve Server Edition for NT                             N/A                         1      1,495.00
  90     5/15/98   DSCI      Maynard Rigby Bill of Materials                           N/A                         1      3,300.00
  91     5/15/98   DSCI      Best Fixed Assets for Windows-Single User                 N/A                         1      1,595.00
  92     6/30/98   Clientele Clientele Software and Services             71718         N/A                         1     24,119.40
  93     7/10/98   PADS      Critical Place and Route                   124012         N/A                         1      2,195,00
  94     8/17/98   Fine Tec  Network Associate Sniffer License          579880         N/A                         2      1,720.00
  95     8/19/98   Wyle      PLS Magnum                                 758268         N/A                         1      1,000.00
  96     8/19/98   Wyle      PLAESW-PC                                  758268         N/A                         1      1,495.00
  97      7/3/98   Synopsys  Software Tool                            70030415         N/A                         1     77,570.00
  100    8/28/98   Fine Tec  MS Office 97                               579929         N/A                         2        920.00
  101    8/31/98   Fine Tec  MS Office 97                               579938         N/A                         1        460.00
                                                                                                                        ----------
                                                                                                                        190,409.40
                                                                                                                        ----------
                                                                                                                        ----------
                                                                           Software Total                               190,409.40
                                                                      Computers FF, EQ, TE Total                        291,925.25
                                                                                                                        ----------

                                                                            Grand Total                                 482,334.65

</TABLE>
<TABLE>
<CAPTION>

NetScreen Technologies, Inc.
PLB LOAN ASSETS
------------------------------------------------------------------------------------------------------------------------------------
        Purchase                                                                   Unit                   Freight, Tax     Invoice
Item #    Date     Vendor    Description                                          Price       Subtotal   Instal & other    Total
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>        <C>       <C>                                                <C>           <C>           <C>            <C>
  84     5/15/98   DSCI      Accounts Receivable                                 1,595.00      1,595.00      131.60       1,726.60
  85     5/15/98   DSCI      Bank Book                                           1,395.00      1,395.00      115.00       1,510.00
  86     5/15/98   DSCI      Sales Order                                         1,595.00      1,595.00      131.60       1,726.60
  87     5/15/98   DSCI      Purchase Order                                      1,595.00      1,595.00      131.60       1,726.60
  88     5/15/98   DSCI      Inventory                                           1,595.00      1,595.00      131.60       1,726.60
  89     5/15/98   DSCI      Btrieve Server Edition for NT                       1,495.00      1,495.00      123.34       1,618.34
  90     5/15/98   DSCI      Maynard Rigby Bill of Materials                     3,300.00      3,300.00      272.25       3,572.25
  91     5/15/98   DSCI      Best Fixed Assets for Windows-Single User           1,595.00      1,595.00      131.60       1,726.60
  92     6/30/98   Clientele Clientele Software and Services                    24,119.40     24,119.40    8,129.41      32,248.81
  93     7/10/98   PADS      Critical Place and Route                            2,195.00      2,195.00      544.63       2,739.63
  94     8/17/98   Fine Tec  Network Associate Sniffer License                     860.00      1,720.00      141.90       1,861.90
  95     8/19/98   Wyle      PLS Magnum                                          1,000.00      1,000.00       82.50       1,082.50
  96     8/19/98   Wyle      PLAESW-PC                                           1,495.00      1,495.00      123.33       1,618.33
  97      7/3/98   Synopsys  Software Tool                                      77,570.00     77,570.00   21,365.00      98,935.00
  100    8/28/98   Fine Tec  MS Office 97                                          460.00        920.00         -           920.00
  101    8/31/98   Fine Tec  MS Office 97                                          460.00        460.00         -           460.00
                                                                               ----------    ----------   ---------     ----------
                                                                               187,109.40    190,409.40   60,069.02     225,478.42
                                                                               ----------    ----------   ---------     ----------

</TABLE><PAGE>

                                                                   Exhibit 10.12

     NETSCREEN TECHNOLOGIES, INC.                      INFORMATION RESOURCE
     2860 San Tomas Expressway                         ENGINEERING, INC.
     Santa Clara, CA  95051                            8029 Corporate Drive
                                                       Baltimore, MD  21236

                               SAFENET/SOFTPK(TM)

                           SOFTWARE LICENSE AGREEMENT

THIS AGREEMENT between NETSCREEN TECHNOLOGIES, Inc. ("Licensee") and INFORMATION
RESOURCE ENGINEERING, INC. ("IRE") is for the license and maintenance of certain
software, as more particularly described herein, in accordance with the terms
and conditions set forth in this Agreement.

WHEREAS, IRE is in the business of designing, manufacturing and marketing
enterprise network technology and systems that enable the deployment of secure
Virtual Private Network (VPN) solutions over the Internet and other shared
public networks;

WHEREAS, the SAFENET/SOFTPK(TM) is a software application designed to secure
data communications sent from a desktop or laptop computer across a public or
private TCP/IP network;

WHEREAS, IRE has the right to license SAFENET/SOFTPK(TM)as described in
Attachment A ("Software");

WHEREAS, Licensee desires to license the Software for its internal use and to
have IRE maintain the Software; and

WHEREAS, Licensee desires to sublicense the Software to its customers who are
purchasing, or have already purchased from the Licensee, Licensee's Internet
Secured Appliance (hereinafter defined);

NOW, THEREFORE, in consideration of the foregoing recitals and the covenants set
forth in this Agreement, the parties agree as follows:

1.   DEFINITIONS.  The following definitions set forth below apply to this
     Agreement:

     .    "Agreement" means this Software License Agreement, including any
          exhibits and attachments hereto.

     .    "Bundle" means a product that is sold as a single unit and is assigned
          a single product identity and a single price but is composed of a
          collection of several individual products, including the Software;
          such individual products may also be sold as "Standalone" products.
          (See Standalone).

     .    "Branding Specifications" means the specifications for the layout of
          the Co-Branded Software and any collateral material as set forth in
          Attachment D.

     .    "Confidential Information" includes, but is not limited to, any of the
          following: (i) any and all versions of IRE's software, code and
          documents; (ii) other proprietary software, firmware, mode, hardware
          and documentation and information previously, now or later created,
          developed, produced or distributed by IRE; (iii) confidential,
          proprietary or made secret information submitted by IRE and/or its
          suppliers, employees or consultants for study, evaluation or use; and

<PAGE>

          any other information not generally known to the public which is
          misused or disclosed could have a reasonable possibility of adversely
          affecting the business of IRE. Either party's failure to mark any
          Confidential Information as confidential, proprietary or otherwise
          shall not affect its status as Confidential Information hereunder.

     .    "End User" means any third party licensor of the Licensee's products
          who has entered into an "End User License" (hereinafter defined) as a
          licensee of Licensee.

     .    "End User License" means an agreement, in writing, between Licensee
          and End User containing, inter alia, the operative terms set forth in
          Exhibit A hereto.

     .    "Enhancement" means an improvement made by IRE to the Software which
          significantly changes the function of the program. An Enhancement is
          indicated by a new version number, appearing to the left of a decimal
          point (i.e. 2.0).

     .    "Intellectual Property" means any and all inventions, improvements,
          enhancements, methods, designs, know-how, trade secrets, software,
          hardware, circuits, products, documentation, made works, layouts,
          ornamental designs, trademarks, service marks, trade dress, company
          names, band names, logos, and fictitious names, together with any and
          all worldwide vested and/or inchoate rights in and to any or all of
          the foregoing under any issued, pending and/or later filed
          applications for patent or copyright registration, trademark and/or
          service mark registration, utility models and/or any other form of
          protection of various forms of intellectual and/or industrial property
          recognized anywhere in the world including any and all rights of
          domestic and/or foreign priority, the right to sue and recover damages
          for infringements including, without limitation, any past
          infringements.

     .    "IRE Technology" means the Software and any related Intellectual
          Property owned or licensed by IRE as of the date of this License
          Agreement.

     .    "Licensee's Internet Secured Appliance" means NetScreen VFN Appliance.

     .    "Maintenance Services" means the services set forth on Attachment B.

     .    "Media" or "Medium" means any document, print, tape, disc,
          semiconductor chip or other tangible information-conveying article.

     .    "Services" means Maintenance Services and engineering services, as
          described in Attachment B, described in support of the Software.

     .    "Software" means intangible information in object code form
          constituting one or more computer or apparatus programs and the
          informational content of such programs as described in Attachment A,
          together with any documentation supplied in conjunction with and
          supplementing such programs, the foregoing being provided to Licensee
          by way of electronic transmission or by being fixed in Media furnished
          to Licensee.

     .    "Specifications" means the specifications for the Software as set
          forth in Attachment A and in IRE's current published specifications.
          Any provisions contained in IRE's specifications in conflict with the
          provisions of any Attachment A shall be deemed deleted.

                                       2

<PAGE>

     .    "Standalone" means a license that is sold as a single unit and is
          assigned a single product identity and a single price and is comprised
          of the Software only although such product may include marketing
          material for other products.

     .    "Update" means a change to the Software made available to Licensee by
          IRE because of design faults, discrepancies or defects ("bugs") in the
          Software. (See Upgrade)

     .    "Upgrade" means an improvement in the Software that does not
          significantly change the function of the program (see Update) and is
          indicated by a subnumber appearing to the right of an initial decimal
          (i.e. 1.1 or 1.1.1).

     .    The term "use" includes copying any portion of the Software, including
          copying into a computer, or transmitting any portion of the Software,
          including transmission to a computer for processing of the
          instructions or statements contained therein

     .    "User" means use by any individual having authorized access to the
          computer onto which the Software is operated.

     .    "Version Number" identifies a new software release as indicated by a
          new whole number designation (i.e.1.0 or 3.0)

     .    "Warranty Period" means the period commencing November 17, 2000 to
          January 1, 2001.

2.   SOFTWARE LICENSE GRANT.  Licensee shall have a world-wide, non-exclusive
license to use the Software, in object form, for the purpose of sublicensing to
End Users, marketing and testing and for demonstration to existing or potential
End Users, subject to and in accordance with this Agreement. Licensee
acknowledges and agrees that the component parts of the Software are being
licensed by IRE or other third party as an integrated system to be used by
Licensee exclusively I conjunction with the other component parts of the
Software. Accordingly, Licensee agrees that the component parts of the Software
may only be used in conjunction with each other, s contemplated by this
Agreement and for no other use or purpose. Licensee agrees that all Software
licensed hereunder or sublicensed in accordance with this Agreement shall bear
such trademarks, logo and copyright information of IRE and of IRE's third party
vendors, as IRE reasonably directs. Notwithstanding the foregoing, Licensee may
make only such copies of the Software as is reasonably necessary for it to
exercise its rights hereunder. Licensee shall not use and shall not permit the
Software and other IRE Technology to be used outside the scope of the License
granted hereunder or in contravention of this Agreement. IRE reserves all rights
not expressly stated herein.

3.   SUBLICENSE BY LICENSEE.  During the term hereof, Licensee may sublicense
the Software, in object form, to End Users of the Licensee's products. The
Software may be sublicensed to End Users as a Bundled product or a Standalone
product to only those third party purchasers who have Licensee's Internet
Secured Appliance. Licensee shall provide IRE, at no cost to IRE, with the
latest version of Licensee's Internet Secured Appliance made commercially
available. All such End Users shall enter into an End User License on terms and
conditions similar or more restrictive than set forth in Exhibit A. No End User
License shall release Licensee from its obligations under this Agreement, except
that IRE shall be a third party beneficiary. Licenses agrees to take all
reasonable steps (including terminating End User Licenses) to enforce the
provisions of each End User License. In the event that IRE requests legal action
be initiated against an End User for breach of the End User License and Licensee
declines to initiate or continue such action, Licensee shall, upon IRE's
request, and at IRE's expense, take all steps

                                       3

<PAGE>

deemed necessary as mutually agreed by IRE's and Licensee's counsel to permit
IRE to initiate and/or prosecute the action, including, without limitation, to
assign the cause of action to IRE or permit IRE to prosecute the action.

4.   OWNERSHIP OF TECHNOLOGY AND RESTRICTIONS ON USE.

     (a) Licensee represents to IRE that Licensee has all right, title and
interest in, or if applicable, licenses to, all of its products, services and
related trademarks, service marks and other proprietary information ("Licensee
Technology" and in context "Technology"). IRE represents to Licensee that IRE
has all right, title and interest in and to the IRE Technology. Each party
agrees that it has no right, title or interest in the other party's Technology.
Licensee agrees not to disassemble, decompile, reverse engineer, merge, use,
disclose, sell, transfer or copy the IRE Technology, or any portion thereof,
other than as expressly permitted in this Agreement.

     (b) Licensee further agrees that all of IRE's ideas, know-how, techniques,
and any enhancements and modifications made to the Software in the future are
owned by IRE and are not licensed hereunder, except as expressly set forth
herein.

     (c) If any claim is asserted against one party ("Indemnitee") that the
Technology of the other party ("Indemnitor") infringes the intellectual property
rights in the United States of America of any third party, the Indemnitee shall
promptly advise the Indemnitor in writing of such claim, and the Indemnitor
shall have the right to elect to control the defense of such claim with counsel
of Indemnitor's choosing, and to the extent Indemnitor so elects to defend, the
Indemnitee shall cooperate fully in the defense thereof and furnish to the
Indemnitor all evidence and assistance in Indemnitee's control. If the
Indemnitor controls the defense or in its sole discretion elects not to control
the defense but is determined to have so infringed, the Indemnitor shall
indemnify the Indemnitee from and against any and all liability, damages, and
reasonable costs (not including attorneys' fees incurred by the Indemnitee in
monitoring or participating in any defense provided by Indemnitor) incurred by
Indemnitee as a result of any such claim or any resulting judgment or settlement
in connection with such a claim against IRE Technology. Licensee's sole remedy
under this Agreement in addition to the foregoing indemnification shall be, at
IRE's sole discretion, to procure the right of continued use, to replace or
modify the affected technology so as to make it non-infringing or refund the
license fees paid by Licensee hereunder less depreciation for use assuming
straight line depreciation over a five (5) year useful life and terminate this
Agreement. Notwithstanding the foregoing, IRE shall no liability under this
Section 4 if the alleged infringement arises from (i) the use of other than the
current unaltered release of the Software or other than in the manner specified
in the applicable documentation, or (ii) a combination of the Software with
other hardware, firmware or software not provided by IRE, if such action would
have been avoided but for such use or combination. NOTWITHSTANDING ANYTHING TO
THE CONTRARY IN THIS AGREEMENT, THE FOREGOING STATES IRE'S ENTIRE LIABILITY AND
LICENSEE'S EXCLUSIVE REMEDY FOR PROPRIETARY RIGHTS INFRINGEMENT.

5.   PROTECTION OF CONFIDENTIAL INFORMATION.  At all times during the term
hereof and at all times thereafter, Licensee shall (i) treat the Confidential
Information with the same degree of care to protect it against unauthorized
disclosure as Licensee normally treats its own Confidential Information of like
character; (ii) not willfully cause or permit disclosure, directly or
indirectly, of Confidential Information to other than its employees (and other
directly or indirectly engaged to do work on behalf of Licensee) who have a need
to know ("Authorized Recipient"); (iii) not use the Confidential Information for
the benefit of itself or any other individual or entity; and (iv) obligate any
Authorized Recipient to honor Licensee's above commitments. The foregoing shall
not apply to any information which (i) was

                                       4

<PAGE>

or is learned by Licensee otherwise than from the Software Media without reason
to know of a common origin, if any, with the Software; (ii) is or becomes
generally available to the public through no fault of Licensee; (iii) is learned
or developed by Licensee from normal use of Software which is object code; or
(iv) was disclosed by IRE to others without requiring such Confidential
Information be kept secret.

6.   SOFTWARE MAINTENANCE.  IRE acknowledges that the software is covered under
the Licensee's current Maintenance Services Agreement expiring November 11,
2000. IRE will extend this Maintenance Agreement through July 1, 2001 for an
additional fee of $17,000.

These Maintenance Services will terminate unless Licensee elects to request
additional Maintenance Service for an extended term. Support fees for all
renewal periods will be paid annually in advance and will equal fifteen percent
(15%) of the initial Licensee license fee.

When purchased outside the Warranty or Maintenance coverage period as described
in Attachment B, Maintenance Services will be equal to 25% of the initial
Licensee license fee.

7.   FEES. Licensee shall pay to IRE all fees as set forth in Attachment C (the
"Fees").

Payment schedule for the Software is as follows:

$30,000 due and payable July 31, 2000.
$75,000 due and payable September 15, 2000
$17,000 maintenance due and payable on or before November 11, 2000

Invoices for annual charges for Maintenance Services and any invoices for
monthly charges for Services shall be submitted prior to completion of such
period and shall be payable no later than thirty (30) days after receipt of such
invoice. In addition to any other rights hereunder, Licensee shall pay to TRE
interest equal to 1.5% of an unpaid, overdue Fee which is not disputed, for each
thirty (30) day period, or portion thereof, in which any Fee remains unpaid.
Licensee's rights under this Agreement are subject to timely payment of Fees.

8.   DELIVERABLES.  On the delivery date, IRE shall furnish to Licensee, at no
additional charge or fee, the following items: (i) confirmation regarding the
electronic data transfer of such Software; and (ii) on-line documentation.

9.   EFFECTIVE DATE AND DURATION.  This Agreement shall be effective from the
date of delivery of the Software and shall remain in effect for 5 years.

10.  SOFTWARE DELIVERY AND REPLACEMENT.  The Software will be delivered to the
Licensee as soon as practical after execution of this Agreement in the form of a
software .zip file image or the Licensee will be directed to a secure web page
to download the software.

11.  TRAINING SERVICES.  IRE shall provide during the Warranty Period, at no
additional charge or fee, assistance and advice, as may be reasonably requested
by Licensee necessary to assist in the use of the Software. Training is
available, at Licensee's expense, at a rate which shall be determined by
contacting the Regional Sales Representative.

12.  CERTIFICATES.  The Software is designed to operate with a digital
certificate that verifies each user's identity which establishing an encrypted
session. The Licensee will sublicense the Software with

                                       5

<PAGE>

default settings, and instructions (both supplied by IRE) that direct the User
to IRE's SafeNet Trusted Services or such other Certificate Authority to obtain
the initial digital certificate at no charge.

13.  LIMITED WARRANTY.  IRE warrants that during the Warranty Period and,
thereafter, so long as Licensee has paid any applicable fees for Maintenance
Services, the Software, when properly installed and used by Licensee and End
Users, will substantially conform to and perform in accordance with the
Specifications. Licensee acknowledges that the Services provided and the
Software are complex and may contain some non-conformities, defects or errors.
IRE does not warrant that the Services provided and the Software will meet
Licensee's need or expectations, that the operations of the Software will be
error free or uninterrupted, or that all non-conformities or defects can or will
be corrected.

IRE warrants that the Services will be performed in a professional manner.

To the best of IRE's knowledge that the Software does not contain any malicious
code, program, or other internal component (e.g. computer virus, computer worm,
computer time bomb, or similar component), which could damage, destroy, or alter
Software, firmware or hardware or which could, in any manner, reveal, damage,
destroy, or alter any data or other information accessed through or processed by
the Software in any manner. IRE shall immediately advise Licensee, in writing,
upon reasonable suspicion or actual knowledge that the use of the Software may
result in the harm described above.

EXCEPT AS SET FORTH IN THIS SECTION, I REMAKES NO WARRANTY OF ANY KIND OR
NATURE, INCLUDING WITHOUT LIMITATION, AS TO MERCHANTABILITY OR FITNESS FOR ANY
USE OR PURPOSE, FOR ANY OF ITS SERVICES OR RIGHTS HEREUNDER, INCLUDING WITHOUT
LIMITATION, THE IRE PROPERTY.

14.  NOTICES.  Any notice or demand which under the terms of this Agreement or
under any statute must or may be given or made by IRE or Licensee shall be in
writing and shall be given or made by confirmed facsimile, or similar
communication or by certified or registered mail addressed to the respective
parties as follows:

To:  Netscreen Technologies, Inc.
     2860 San Tomas Expressway
     Santa Clara, CA  95051
     Attn:  Gregory Lebovitz

To:  Information Resource Engineering
     8029 Corporate Drive
     Baltimore, MD  21236
     Attn:  Carole Argo

The effective dates of such notice shall be (1) upon evidence of successful
facsimile transmission, or (2) five days following the date mailed for certified
or registered letters and two days following the date mailed for overnight
letters, or (3) when delivered, if in person. The above addresses may be changed
at any time by giving prior written notice as above provided.

15.  RISK OF LOSS.  Risk of loss and damage to material purchased by Licensee
under this Agreement shall vest in Licensee when the material has been delivered
at the FOB IRE point of destination.

                                       6

<PAGE>

16.  TAXES.  Licensee shall reimburse IRE for the following tax payments with
respect to transactions under this Agreement unless Licensee advises IRE that an
exemption applies: federal, state and local sales and use taxes, as applicable.
Taxes payable by Licensee shall be billed as separate items on IRE's invoices
and shall not be included in IRE's prices.

17.  COMPLIANCE WITH LAWS.  IRE and Licensee shall comply, at their own expense,
with all applicable federal, state, local and foreign laws, ordinances,
regulations and codes in the performance of the Agreement. IRE and Licensee
agree to indemnify, defend and hold each other harmless from and against any
losses, damages, claims, demands, suits, liabilities, fines, penalties, and
expenses (including reasonable attorneys' fees), that arise out of or result
from any failure to do so.

18.  COMPLIANCE WITH EXPORT RESTRICTIONS.  The licensee specifically
acknowledges that the Software contains cryptographic material that may be
subject to US export laws, and/or subject to other countries' import laws. The
Licensee shall be solely responsible for complying with any export or import
restrictions.

19.  CHOICE OF LAW.  This Agreement and all transactions under it shall be
governed by the laws of the State of Delaware excluding its choice of laws rules
and excluding the Convention for the International Sale of Goods. Both parties
agree to submit to the jurisdiction of any court in the State of Delaware
wherein an action is commenced against the other based on a claim for which the
parties have agreed to indemnify each other under this Agreement.

20.  MEDIATION.  If a dispute relates to this Agreement, or its breach, and the
parties have not been successful in resolving such dispute through negotiation,
the parties agree to attempt to resolve the dispute through mediation by
submitting the dispute to a sole mediator selected by the parties or, at any
time at the option of a party, to mediation by the American Arbitration
Association ("AAA"). Each party shall bear its own expenses and an equal share
of the expenses of the mediator and the fees of the AAA. All defenses based on
passage of time shall be suspended pending the termination of the mediation.
Nothing in this clause shall be construed to preclude any party from seeking
injunctive relief in order to protect its rights pending mediation.

21.  PUBLIC ANNOUNCEMENT.  Licensee grants to IRE the right to market the
existence of this Agreement and relationship. IRE and Licensee will make a joint
public announcement concerning the fact the Licensee has selected IRE's Software
as soon as practical after the execution of this Agreement. The Licensee may
choose not to participate in such joint announcement.

22.  CO-BRANDING.  The Licensee acknowledges that the Software is derived from
IRE's standard product and therefore contains IRE's branding. Such branding will
be retained in the Software. The Licensee shall not remove any proprietary
trademark or copyright markings placed in the Software by the IRE. Licensee
shall display IRE's logo and copyright notice on the brochures, product
packaging, and other collateral material provided in Licensee's Standalone
product, in accordance with the Branding Specifications set forth in Attachment
D. Licensee may affix its branding to the Software in accordance with the
Branding Specifications set forth in Attachment D, subject to the Fees set forth
in Attachment C.

23.  RSA Licensing.  The Software contains the RSA algorithm which is patented
by RSA Data Security. As the Licensee has obtained a license to the RSA, the
Licensee assumes responsibility for the license of RSA technology. Licensee
shall indemnify and save harmless IRE, its affiliates and their customers,
officers, directors, and employees (all referred to in this clause as "IRE")
from and against

                                       7

<PAGE>

any losses, damages, liabilities, fines, penalties, and expenses (including
reasonable attorneys' fees) that arise out of or result from any and all claims
by RSA.

24.  SPECIAL PROCEDURE FOR US GOVERNMENT SALES.  In cases where the US
Government is the ultimate End User, Licensee must inform IRE of any clauses of
the applicable Federal Acquisition Regulations which are intended to flow down,
and IRE will provide Licensee written acceptance of those specific clauses which
are accepted. Otherwise, no government regulations or contract provisions will
govern this Agreement.

25.  LIMITATION OF LIABLITY.  IN NO EVENT WILL IRE BE LIABLE TO THE LICENSEE OR
END USER FOR INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY END USER LICENSE AGREEMENT,
INCLUDING BUT NOT LIMITED TO, LOST PROFITS OR BUSINESS, EVEN IF IRE HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, REGARDLESS OF THE CAUSE OF ACTION OR
THE FORM OF ACTION, IRE'S AGGREGATE LIABILITY TO LICENSEE OR END USER FOR ACTUAL
DAMAGES ARISING OUT OF OR RELATED TO THIS AGREEMENT SHALL BE LIMITED TO THE
TOTAL AMOUNT PAID BY LICENSEE HEREUNDER OR END USER, RESPECTIVELY.

26.  FORCE MAJEURE.  Neither party shall be held responsible for any delay or
failure in performance of any part of this Agreement, except for payment
obligations, to the extent such delay or failure is caused by fire, flood,
strike, civil, governmental or military authority, act of God, or other similar
causes beyond its control and without the fault or negligence of the delayed or
nonperforming party or its subcontractors ("force majeure conditions"). When a
party's delay or nonperformance continues for a period of at least fifteen (15)
days, the other party may terminate, at no charge, the Agreement.

27.  WAIVER.  The failure of either party at any time to enforce any right or
remedy available to it under this Agreement or otherwise with respect to any
breach or failure by the other party shall not be construed to be a waiver of
that right or remedy with respect to any other breach or failure by the other
party.

28.  SEVERABILITY.  If any of the provisions of this Agreement shall be invalid
or unenforceable, the invalidity or unenforceability shall not invalidate or
render unenforceable the entire Agreement, but rather the entire Agreement shall
be construed as if not containing the particular invalid or unenforceable
provision or provisions, and the rights and obligations of the parties shall be
construed and enforced accordingly.

29.  TERMINATION OF AGREEMENT.

This Agreement may be terminated at any time by written agreement if agreed to
and executed by both parties.

This Agreement may be terminated by IRE upon the consummation of (i) a sale of
shares of stock of the Licensee, other than a redemption or purchase by the
Licensee of shares of stock of the Licensee, or a merger, consolidation or other
combination of the Licensee to or with an unaffiliated third party, if, as a
result of and after the consummation of such transaction, stockholders of the
Licensee who collectively owned (legally or beneficially) shares of stock of the
Licensee having a fair market value of one hundred percent (100%) of the fair
market value of the stock of the Licensee actually outstanding immediately
preceding the consummation of such transaction own shares of stock of the
Licensee and/or its acquiror or successor having a fair market value of less
than fifty percent (50%) of the fair market value of the

                                       8

<PAGE>

stock of the Licensee and/or its acquiror or successor actually outstanding;
(ii) the consummation of a sale or conveyance of all or substantially all of the
assets of the Licensee to an unaffiliated third party; or (iii) a series of
sequential or related transactions of the kind described in items (i) and (ii)
hereof.

IRE may terminate this Agreement if a receiver is appointed over the whole or
part of the assets of Licensee, or if a petition is filed by or against licensee
initiating any bankruptcy reorganization proceeding or if Licensee makes an
assignment for the benefit of creditors, or if any order is made or resolution
is adopted for the dissolution of Licensee then Licensee shall immediately
notify IRE of such event, and IRE may terminate this Agreement by written notice
thereof, effective upon the date of its sending.

This Agreement may be terminated at the option of the non-defaulting party, by
written notice thereof to the defaulting party, specifying in reasonable detail
the reason for termination, if (i) the defaulting party breached or otherwise
fails to perform or comply in a material respect with a material obligation or
covenant, and such breach or failure is not cured to the non-defaulting party's
reasonable satisfaction within ten (10) days receipt of such notice; or (ii) the
defaulting party fails to comply strictly with the provisions of Sections 4 and
5. If the non-defaulting party is Licensee, then the sole and exclusive remedy
of Licensee shall be that IRE refunds to Licensee all fees paid by Licensee up
to the amount of the loss incurred and that this Agreement is terminated subject
to Section 4(c), without further recourse.

Within five (5) business days of the expiration or termination of this
Agreement, Licensee shall immediately: (i) discontinue all use of the Software;
(ii) deliver to IRE the Software then in Licensee's possession or control,
together with all copies thereof; (iii) erase or destroy any of the Software
contained in the computer memory or data storage apparatus under the control of
the Licensee; (iv) remove any Software in Licensee's possession or control that
incorporates or uses the Software in whole or in part; and (v) warrant in
writing to IRE within five (5) days after termination that all actions (i) -
(iv) have been taken by Licensee. Upon termination of this Agreement, those
provisions that expressly or by their nature survive shall survive termination
of this Agreement, including, without limitation, all payments due and owing to
IRE and Section 4. All other rights and obligations of the parties shall cease
upon termination of this Agreement.

Upon early termination of this Agreement or the expiration of its term, Licensee
agrees it will immediately supply Ire with copies of information on all known
End Users of the Software. Licensee must supply any machine readable electronic
version of such information including, but not limited to, the End Users' name,
company name and contact information such as the latest mailing address,
telephone and fax numbers and email address. Should Licensee have duplicate or
overlapping records in paper and electronic form, Licensee will supply copies of
both paper and electronic records. IRE may use this information to conduct
reasonable business relations with such End Users.

30.  SURVIVAL OF OBLIGATIONS.  The obligations of the parties under this
Agreement, which by their nature would continue beyond the termination,
cancellation or expiration of this Agreement, shall survive termination,
cancellation or expiration of this Agreement.

31.  SIGNATURE.  The parties shall be entitled to rely upon and enforce a
facsimile of any authorized signatures as if it were the original.

32.  ENTIRE AGREEMENT.  This Agreement shall constitute the entire agreement
between the parties with respect to the subject matter of this Agreement shall
not be modified or rescinded, except by a writing signed by IRE and Licensee.
Printed provisions on any Licensee's or IRE's forms shall be deemed deleted.
Estimates or forecasts furnished by Licensee shall not constitute commitments.
The

                                       9

<PAGE>

provisions of this Agreement supersede all contemporaneous oral agreements and
all prior oral and written communications and understandings of the parties with
respect to the subject matter of this Agreement.

33.  ASSIGNMENT.  Licensee shall not assign or otherwise transfer this Agreement
or any rights or obligations hereunder without the express written approval of
IRE, which approval shall not be unreasonably withheld. This Agreement will bind
and inure to the benefit of the successors and assigns of the parties.

34.  ESCROW AGREEMENT.  IRE acknowledges that the Licensee has an Escrow
Agreement in place (Attachment E). IRE agrees to deposit version 5 in the
existing Escrow Account.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly empowered representatives.

INFORMATION RESOURCE                       NETSCREEN TECHNOLOGIES, INC.
ENGINEERING, INC.

By:                                        By:     /s/  Peter Kent
       ------------------------------             ------------------------------

Name:                                      Name:        Peter Kent
       ------------------------------             ------------------------------

Title:                                     Title:       CFO
       ------------------------------             ------------------------------

Date:                                      Date:        6/30/00
       ------------------------------             ------------------------------

                                       10

<PAGE>

                                    Exhibit A

                           Software License Agreement

NetScreen Technologies, Inc.
SOFTWARE LICENSE AGREEMENT

Please read this license carefully before using the software. By using the
software, you are agreeing to be bound by the terms of this license. If you do
not agree to the terms of this license, promptly return the unused software to
the place where you obtained it and your money will be refunded.

1.   DEFINITIONS

"Netscreen Software" - The software package distributed under the name
NetScreen-Remote which runs on PCs and includes the software and documentation
developed by NETSCREEN TECHNOLOGIES, INC. (herein-after NetScreen) and computer
programs developed by INFORMATION RESOURCE ENGINEERING, INC. (herein-after IRE)
and licensed by NetScreen to provide functionality to the NetScreen Remote
producer.

2.   LICENSE

The application, demonstration, system and other software accompanying this
License, whether on disk, in read only memory, or on any other media (the
"NetScreen Software") and related documentation are licensed to you by
NetScreen. You own the risk on which the NetScreen Software is recorded but
NetScreen retains title to the NetScreen Software and related documentation.
This License allows you to use the NetScreen Software on a single PC or other
similar computing device and to make one copy of the NetScreen Software in the
machine-readable form for backup purposes only. You must reproduce on such copy
the NetScreen copyright notice and the IRE logo and name and any other
proprietary legends that were on the original copy of the NetScreen Software.
This License is issued on a non-exclusive, non-transferable basis.

3.   RESTRICTIONS

The NetScreen Software contains copyrighted material, trade secrets and other
proprietary material and in order to protect them you may not reproduce,
decompile, reverse engineer, disassemble or otherwise reduce the NetScreen
Software to a human-perceivable form. You may not modify, network, rent, lease,
loan, distribute, disseminate, retransmit, publish, sublicense, or create
derivative works based upon the NetScreen Software in whole or in part. You may
not electronically transmit the NetScreen Software from one computer to another
or over a network.

4.   TERMINATION

This License is effective until terminated. You may terminate this License at
any time by destroying the NetScreen Software and related documentation and all
copies thereof. This License will terminate immediately without notice from
NetScreen if you fail to comply with any provision of this License.

<PAGE>

Upon termination you must destroy the NetScreen Software and related
documentation and all copies thereof.

5.   EXPORT LAW ASSURANCE

You agree and certify that neither the NetScreen Software nor any other
technical data received from NetScreen, nor the direct product thereof, will be
exported outside the United States except as permitted by the laws and
regulations of the United States which may require U.S. Government export
approval/licensing. Failure to strictly comply with this provision shall
automatically invalidate this License.

6.   GOVERNMENT END USERS

If you are acquiring the NetScreen Software on behalf of any unit or agency of
the United States Government, the following provisions apply. The Government
agrees:

a.   If the NetScreen Software is supplied to the Department of Defense (DoD),
the NetScreen Software is classified as "Commercial Computer Software" and the
Government is acquiring only "restricted rights" in the NetScreen Software and
its documentation as that term is defined in Clause 252.227-703(c)(1) of the
DFARS; and

b.   If the NetScreen is supplied to any unit or agency of the United States
Government other than DoD, the Government's rights in the NetScreen Software and
its documentation will be as defined in Clause 52.227-19(c)(2) of the FAR or, in
the case of NASA, in Clause 18-52.227.86(d) of the NASA Supplements to the FAR.

7.   LIMITED WARRANTY ON MEDIA

NetScreen warrants the disks on which the NetScreen Software is recorded to be
free from defects in materials and workmanship under normal use for a period of
ninety (90) days from the date of purchase as evidenced by a copy of the
receipt. NetScreen's entire liability and your exclusive remedy will be
replacement of the disk not meeting NetScreen's limited warranty and which is
returned to NetScreen or a NetScreen authorized representative with a copy of
the receipt. NetScreen will have no responsibility to replace a disk damaged by
accident, abuse or misappropriation. NETSCREEN EXPRESSLY DISCLAIMS ANY IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THIS
WARRANTY GIVES YOU SPECIFIC LEGAL RIGHTS, AND YOU MAY ALSO HAVE OTHER RIGHTS
WHICH VARY FROM STATE TO STATE.

8.   DISCLAIMER OF WARRANTY ON NETSCREEN SOFTWARE

You expressly acknowledge and agree that the use of the NetScreen Software is at
your sole risk. THE NETSCREEN SOFTWARE AND RELATED DOCUMENTATION ARE PROVIDED
"AS IS" AND WITHOUT WARRANTY OF ANY KIND AND NETSCREEN EXPRESSLY DISCLAIMS ALL
WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF
MERCHANTABILITY ABILITY AND FITNESS FOR A PARTICULAR PURPOSE. NetScreen does not
warrant that the functions contained in the NetScreen Software will meet your
requirements, or that the operation of the NetScreen Software will be
uninterrupted or error-free, or that defects in the NetScreen Software will be
corrected.

<PAGE>

Furthermore, NetScreen does not warrant or make any representations regarding
the use or the results of the use of the NetScreen Software or related
documentation in terms of their correctness, accuracy, reliability, or
otherwise. No oral or written information or advice given by NetScreen or a
NetScreen authorized representative shall create a warranty or in any way
increase the scope of this warranty. Should the NetScreen Software prove
defective, you (and not NetScreen or a NetScreen authorized representative)
assume the entire cost of all necessary servicing, repair or correction. Some
states do not allow the exclusion of implied warranties, so the above exclusion
may not apply to you.

9.   LIMITATION OF LIABILITY

UNDER NO CIRCUMSTANCES SHALL NETSCREEN BE LIABLE FOR ANY INCIDENTAL, SPECIAL OR
CONSEQUENTIAL DAMAGES THAT RESULT FROM THE USE OR INABILITY TO USE THE NETSCREEN
SOFTWARE OR RELATED DOCUMENTATION, EVEN IF NETSCREEN OR A NETSCREEN AUTHORIZED
REPRESENTATIVE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. Some states
do not allow the limitations or exclusion of liability for incidental or
consequential damage, so the above limitation or exclusion may not apply to you.
In no event shall NetScreen's total liability to you for all damages, losses,
and causes of action (whether in contract, tort or otherwise) exceed the amount
paid by you for the NetScreen Software.

10.  CONTROLLING LAW AND SEVERABILITY

This License shall be governed by and construed in accordance with the laws of
the United States and the State of Delaware, as applied to agreements entered
into and to be performed entirely within Delaware between Delaware residents. If
for any reason a court of competent jurisdiction finds any provision of this
License, or portion thereof, to be unenforceable, that provision of the License
shall be enforced to the maximum extent permissible so as to effect the intent
of the parties, and the remainder of this License shall continue in full force
and effect.

11.  WAIVER

No failure by NetScreen to exercise or delay in exercising any right arising
hereunder shall operate as a waiver thereof; nor shall a waiver by NetScreen of
any such right be deemed to be a continuing waiver, but such waiver shall apply
solely to the instance in which the waiver was granted.

12.  INVALIDITY

The invalidity of any provision of this License shall not affect the validity of
any other provision hereof.

13.  COMPLETE AGREEMENT

This License constitutes the entire agreement between the parties with respect
to the use of the NetScreen Software and related documentation, and supersedes
all prior or contemporaneous understanding or agreements, written or oral,
regarding such subject matter. No amendment to or modification of this License
will be binding unless in writing and signed by a duly authorized representative
of NetScreen.

<PAGE>

                                  Attachment A

                            LICENSE/PRODUCT SCHEDULE

Licensee License Agreement Number:  ___ (insert agreement number) ___

Date of Licensee Master License Agreement:  ___ (insert date of agreement) ___

1.   Description of Software

     IRE's Software: SafeNet/Soft-PK

     Version Numbers: release 5.0

     Operating System: Microsoft NT 4.0 and Windows '95/'98 and Windows 2000

     Hardware Platform: Intel

2.   Description of Licensed Software for incorporation into the License Product

     IRE's Software: Deterministic Networks Shim

     Version Numbers: version 2.0

     Operating System: Microsoft NT 4.0. Windows '95, and Windows 2000

     Hardware Platform: Intel

3.   Description of Software Certificate Procedure

4.   Software Specifications

     Please refer to SafeNet/Soft PK Version 5 Release Notes

<PAGE>

                                  Attachment B

                               MAINTENANCE PROGRAM

IRE will provide Standard Technical Maintenance and Support for SafeNet/
SOFTPK(TM) Microsoft NT 4.0.

1.   GENERAL REQUIREMENTS. IRE will provide a toll free telephone Hotline
support number available from 8:30 AM Eastern Time ("ET") to 5:30 PM ET, Monday
through Friday, a toll-free facsimile number and/or an Internet address. IRE
warrants that such toll free number, toll free facsimile number and Internet
address shall be maintained by qualified support specialists who shall answer
questions from and provide support to Licensee regarding the Software.

2.   RESPONSE AND RESOLUTION SCHEDULE

     a)   Licensee will classify each error or defect in the Software or related
          Documentation and will report such error or defect to IRE for
          correction based on the following criteria:

          ERROR
          CLASSIFICATION                          CRITERIA

          Severity 1          Fatal:  Errors preventing all useful work from
                              being done as reasonably determined by Licensee.

          Severity 2          Severe Impact:  Errors which disable major
                              functions from being performed as reasonably
                              determined by Licensee.

          Severity 3          Degraded Operations:  Errors disabling only
                              certain nonessential functions as reasonably
                              determined by Licensee.

          Severity 4          Minimal Impact:  Includes all others as reasonably
                              determined by Licensee.

          IRE shall use best efforts to respond to error reports according to
          the following schedule:

          CLASSIFICATION      LEVEL 1              LEVEL 2       LEVEL 3

          Severity 1          1 hour               1 day         Next version*
          Severity 2          4 hours              1 day         Next version*
          Severity 3          1 business day       15 days       As appropriate
          Severity 4          7 business days      45 days       As appropriate

          *Provided such error is reported by Licensee to IRE prior to close of
          code freeze for such Version.

          Level Identification
          --------------------

          Level 1 - Acknowledgement of receipt of error report

          Level 2 - Provide patch, workaround, temporary fix and documentation
          correction pages.

          Level 3 - Official object code fix, update or major release and/or
          updated manuals. Toll free hotline calls, toll free facsimile calls
          and Internet address messages regarding the report of errors made
          after 5:30 PM ET shall be responded to the next business day within
          one hour of 8:30 AM ET.

          a)   Licensee will consider a problem resolved when Licensee has
               either:

               i)   Implemented a satisfactory telephone recommendation
                    received.

               ii)  Taken possession of upgraded software used to correct the
                    error.

<PAGE>

          b)   For eighteen months (18) months after the introduction of a new
               generally available Enhancement, IRE will use reasonable efforts
               to support the previous release of the Software.

          c)   As part of the Maintenance Services, Licensees shall be entitled
               to Updates or Upgrades to the Software and may copy and
               distribute the new Software release to sublicensees with no
               additional charge by IRE.

<PAGE>

                                  Attachment C

                                  FEE SCHEDULE
                                  ------------

Up-front Fees (required):     $105,000
includes delivery a software.zip file image or the Licensee will be directed to
a secure web page to download the software.

Maintenance Fees:             $17,000
Extends maintenance from November 11, 2000 to July 1, 2001.

<PAGE>

                                  Attachment D

                             BRANDING SPECIFICATIONS
                             -----------------------
<TABLE>
<CAPTION>
File name         Size                                Description
---------         ----                                -----------
<S>               <C>                                 <C>
SNDig.bmp         120 x 59 pixels w24bit colors       Left panel displayed during install.  Must
                                                      include the SafeNet logo, 15 - 20% of the
                                                      screen. Logo files of .esp and .tif
                                                      attached, use whatever file type is easier as
                                                      long as the final format is a .bmp file.

setup.bmp         384 x 343 pixels w/24 bit colors    Splash screen shown during install. Must
                                                      include the SafeNet logo.  15 - 20% of the
                                                      screen, logo files of .esp and .tif attached,
                                                      use whatever file type is easier as long as
                                                      the final format is a .bmp file.

certificate.bmp   529 x 353 pixels w/256 bit colors   Frame shown in the certificate info displays
                                                      Licensee's logo

softcard.ico      16 x 16 pixels w/ 16bit colors      Three (3) icons for spdeditor
                  32 x 32 pixels w/16bit colors       Cert Manager & Title Bars
                  32 x 32 pixels w/256bit colors      Return just ONE file with these three images
                                                      within that one .ico file.

banner.bmp        136 x 32 w/24 bit colors            banner for cpdeditor and cert mgr

trayimages.bmp    144 x 16 pixels, 16bit colors       an array of icons for the tray application (9
                                                      16 x 16 Regions) depicting different traffic
                                                      patterns

license.txt       Frame                               licensing displayed during install. Licensee
                                                      can customize we provide the frame.
</TABLE>

Please ensure that the returned files are exactly as specified above, exact
name. Pixels and colors. If not we will not be able to include them in your
build.

Cover Page OEM Option: "If planning on deploying via CD, there is an optional
html cover page that can be included. If interested, contact IRE and we will
provide a sample which can be modified as desired."

The Title bars will also carry the Licensee's product name. Please provide the
exact verbiage you wish to see in the title bars.

The .chm-based Help files can be customized by the Licensee. IRE will provide
the Help file source and instructions for customization;

<PAGE>
Help Files:

1.   SPDEdit.chm is the file that ships with the product*. It is in the
     Microsoft HTML.Help format, which requires Internet Explorer 4 or later to
     be installed on the computer. (Note: IE does not need to be the default
     browser, the help only uses the Help Viewer component to display properly.)
     It was created in RoboHelp 2000 HTML Edition.

2.   Soft-PK Help.bmp is just a screen shot to show you how the help is supposed
     to look. Request example.

3.   Soft-PK Help.zip is a compressed file of all the help source files. Will be
     provided at customer request.

*To view the glossary and browse sequence, the HHActiveX.dll files also need to
be installed. Instructions are attached in the register HHActiveX.txt file. This
dll is included in SafeNet/Soft-PK, but is required on your computer if you are
viewing the help as a stand-alone file.

<PAGE>

                                  Attachment E

                                ESCROW AGREEMENT

     Preliminary Statement.  IRE will deliver to Fort Knox a sealed package
containing magnetic tapes, disks, disk packs, or other forms of media, in
machine readable form, and the written documentation prepared in connection
therewith, and any subsequent updates or changes thereto (the "Deposit
Materials") for the computer software products (the "System(s)", all as
identified from time to time on Exhibit A hereto. IRE desires Fort Knox to hold
the Deposit Materials, and, upon certain events, deliver the Deposit Materials
(or a copy thereof) to those persons or entities listed from time to time on
Exhibit B hereto as a licensee of IRE ("Licensee"), in accordance with the terms
hereof.

     Now, therefore, in consideration of the foregoing, of the mutual promises
hereinafter set forth, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

     1.   Delivery by IRE.  IRE shall be solely responsible for delivering to
Fort Knox the Deposit Materials as soon as practicable. Fort Knox shall hold the
Deposit Materials in accordance with the terms hereof.

     2.   Updates/Upgrades.  IRE shall deposit with Fort Knox any modifications,
updates, new releases or documentation related to the Deposit Materials by
delivering to Fort Knox an updated version of the Deposit Materials ("Additional
Deposit") as soon as practicable after the modifications, updates, new releases
and documentation have been developed by IRE.

     3.   Notification of Deposits.  Simultaneous with the delivery to Fort Knox
of the Deposit Materials or any Additional Deposit, as the case may be, IRE
shall deliver to Fort Knox a written statement specifically identifying all
items deposited and stating that the Deposit Materials or any Additional
Deposit, as the case may be, so deposited have been inspected by IRE and are
complete and accurate. Fort Knox shall, within ten (10) business days of receipt
of any Deposit Materials, send notification to IRE and Licensee that it has
received from IRE such Deposit Materials.

     4.   Delivery by Fort Knox.

          4.1  Delivery by Fort Knox to Licensees.  Fort Knox shall deliver the
Deposit Materials, or a copy thereof, to a Licensee only in the event that:

     (a)  IRE notifies Fort Knox to effect such delivery to a Licensee or
Licensees at a specific address or addresses, the notification being accompanied
by a check payable to Fort Knox in the amount of one hundred dollars ($100.00),
or

     (b)  Fort Knox receives from any Licensee:

          (i)  written notification that:

               (a)  IRE has voluntarily discontinued its maintenance and/or
                    support of the Software in accordance with the License
                    Agreement; or

<PAGE>

                (b)  IRE has assigned, transferred or delegated its rights and
                     obligations under the License Agreement to another party
                     without Licensees prior written consent, which will not be
                     unreasonably withheld; or

                (c)  Licensee has terminated the License Agreement by reason of
                     any other material breach by IRE of its obligations
                     thereunder which remains uncured thirty (30) days after
                     IRE's receipt of written notice thereof from Licensee.

          (ii)  evidence satisfactory to Fort Knox that Licensee has previously
                notified IRE of such IRE Default in writing;

          (iii) a written demand that the Deposit Materials be released and
                delivered to Licensee;

          (iv)  a written undertaking from the Licensee that the Deposit
                Materials being supplied to the Licensee will be used only as
                permitted under the terms of the License Agreement;

          (v)   specific instructions from the Licensee for this delivery; and

          (vi)  an initial check payable to Fort Knox in the amount of one
                hundred dollars ($100.00).

     (c)  If the provisions of paragraph 4.1(a) are satisfied, Fort Knox shall,
within five (5) business days after receipt of the notification and check
specified in paragraph 4.1(a), deliver the Deposit Materials in accordance with
the applicable instructions.

     (d)  If the provisions of paragraph 4.1(b) are met, Fort Knox shall, within
five (5) business days after receipt of all the documents specified in paragraph
4.1(b), send by certified mail to IRE a photo static copy of all such documents.
IRE shall have thirty (30) days from the date on which IRE receives such
documents ("Objection Period") to notify Fort Knox of its objection ("Objection
Notice") to the release of the Deposit Materials to a Licensee and to request
that the issue of Licensee's entitlement to a copy of the Deposit Materials be
submitted to arbitration with the following provisions:

     (i)  If IRE shall send an Objection Notice to Fort Knox during the
          Objection Period, the matter shall be submitted to, and settled by
          arbitration by, a panel of three (3) arbitrators chosen by the
          Wilmington Delaware Regional Office of the American Arbitration
          Association in accordance with the rules of the American Arbitration
          Association. The arbitrators shall apply Delaware law. At least one
          (1) arbitrator shall be reasonably familiar with the computer software
          industry. The decision of the arbitrators shall be binding and
          conclusive on all parties involved, and judgment upon their decision
          maybe entered in a court of competent jurisdiction. All costs of the
          arbitration incurred by Fort Knox, including reasonable attorneys'
          fees and costs, shall be paid by the IRE. If, however, a Licensee
          refuses to submit to such binding arbitration, the matter shall not be
          submitted to arbitration and Fort Knox may submit the matter to any
          court of competent jurisdiction in an interpleader or similar action
          in accordance with paragraph 6(a) hereof.

     (ii) IRE may, at any time prior to the commencement of arbitration
          proceedings, notify Fort Knox that IRE has withdrawn the Objection
          Notice. Upon receipt of any such

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