Document:

<PAGE>   1

                                                                   EXHIBIT 10.51

           COMMERCIAL TERM LOAN, REVOLVING LOAN AND SECURITY AGREEMENT

                          DATED AS OF DECEMBER 22, 1999

                                 BY AND BETWEEN

                                     USTRUST

                                       AND

                          IMPLANT SCIENCES CORPORATION

<PAGE>   2

           COMMERCIAL TERM LOAN, REVOLVING LOAN AND SECURITY AGREEMENT
           -----------------------------------------------------------

         COMMERCIAL TERM LOAN, REVOLVING LOAN AND SECURITY AGREEMENT (as it may
be amended and supplemented from time to time, the "Agreement"), dated as of
December 22, 1999, by and between Implant Sciences Corporation, a Massachusetts
corporation with its principal place of business at 107 Audubon Road, Wakefield,
Massachusetts 01880-1246 ("Borrower") and USTrust, with its principal office at
30 Court Street, Boston, Massachusetts 02108 ("Lender").

         WHEREAS, on May 1, 1996, Borrower executed and delivered to Lender a
certain Loan Agreement which established a $100,000 Line of Credit as evidenced
by a certain $100,000 Commercial Promissory Note, and a $300,000 Equipment/Term
Loan as evidenced by a certain $300,000 Commercial Promissory Note, both dated
May 1, 1996, the payment of which was secured, INTER ALIA, by a Security
Agreement also dated May 1, 1996 (the "Security Agreement").

         Said Loan Agreement was amended by a First Amendment to Loan Agreement
dated July 24, 1997 which, inter alia, increased the amount of said Line of
Credit to Three Hundred Thousand ($300,000) Dollars (the "LINE OF CREDIT"), and
reduced said Equipment/Term Loan to One Hundred Five Thousand Five Hundred
Fifty-Five ($105,555) Dollars (the "1997 TERM LOAN") as evidenced by two
Commercial Promissory Notes dated July 24, 1997 (the "LINE OF CREDIT NOTE") and
August 12, 1997 (the "1997 TERM NOTE") respectively, which replaced the Notes
dated May 1, 1996.

         Said Loan Agreement as amended, was further amended by a Second
Amendment to Loan Agreement dated January 16, 1998, which, inter alia, decreased
the 1997 Term Loan to Ninety-Four Thousand Four Hundred Forty-Four and 44/100
($94,444.44) Dollars, and extended a new term loan in the original principal
amount of Seven Hundred Fifty Thousand ($750,000) Dollars (the "1998 EQUIPMENT
LOAN") as evidenced by a Commercial Promissory Note dated January 16, 1998 (the
"1998 EQUIPMENT NOTE").

         WHEREAS, Borrower has requested and Lender has agreed, subject to the
terms and conditions of this Agreement, and in reliance upon the representations
and warranties set forth herein, to establish for Borrower's benefit the
following: (i) to replace the Line of Credit with an unsecured Line of Credit in
the amount of Seven Hundred Fifty-Thousand and 00/100 ($750,000.00) Dollars (the
"REVOLVING LINE OF CREDIT"); and (ii) to extend an equipment/term loan in the
amount of Seven Hundred Fifty-Thousand and 00/100 ($750,000.00) Dollars (the
"1999 TERM LOAN") to the Borrower as set forth below.

         The terms and conditions of this Agreement shall apply to the 1997 Term
Note and the 1998 Equipment Note and the loans evidenced thereby. The terms and
conditions of this Agreement shall supercede those of any prior loan agreement
entered into in connection with the 1997 Term Note and the 1998 Equipment Note
to the extent inconsistent with the terms hereof. The Security Agreement, as
amended shall be deemed to refer to this Agreement and shall remain in full
force and effect. All schedules and exhibits referred to in this Agreement are
annexed hereto and made a part hereof.

<PAGE>   3

         In consideration of the foregoing and in further consideration of the
mutual covenants herein contained, the parties hereto agree as follows:

SECTION 1. DEFINITIONS

         1.1 GENERAL TERMS. As used in this Agreement, the following terms shall
have the following respective meanings:

                  "Accounts" shall have the meaning given to that term in
Section 4.1. hereof.

                  "Account Debtor" shall mean the Persons liable on an Account.

                  "Banking Day" means a day other than a Saturday, Sunday or
banking holiday in the Commonwealth of Massachusetts.

                  "Base Rate" means the Base Rate of interest announced by the
Bank from time to time as its "Base Rate". The Base Rate is a reference rate and
does not necessarily represent the lowest or best rate being charged to any
customer. Interest shall be calculated on the basis of actual days elapsed and a
360-day year.

                  "Borrower" shall have the meaning given to that term in the
preamble of this Agreement.

                  "Borrower's Account" means Borrower's main operating account
maintained with Lender bearing Borrower's name and in which all advances by
Lender to Borrower and all payments by Borrower to Lender pursuant to this
Agreement shall be recorded.

                  "Capital Expenditures" means, during the period being
measured, the total amount of Borrower's expenditures for the acquisition,
construction, improvement, replacement or purchase of property or plant assets
or any other assets that in accordance with GAAP is required or permitted to be
treated as a capital asset, including, expenditures under capital leases.

                  "Closing Date" means as of December 22, 1999.

                  "Code" means the Internal Revenue Code of 1986, as amended,
and all rules and regulations promulgated thereunder, in each case as in effect
from time to time.

                  "Collateral" means any and all assets of Borrower or any of
Borrower's Affiliates or any other Person with respect to which Lender is now or
hereafter granted a lien, security interest, mortgage or any other interest
pursuant to this Agreement or any other agreement entered into with respect to
the transactions contemplated by this Agreement, including the items described
in Section 4.1 hereof.

                  "Default" means an event that with the giving of notice or
lapse of time, or both, would constitute an Event of Default.

                                       2
<PAGE>   4

                  "Equipment" shall be given that definition set forth in the
Uniform Commercial Code in effect in the Commonwealth of Massachusetts but shall
not include motor vehicles.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended, and any successor statute of similar import, and all
regulations and rulings promulgated thereunder, in each case as in effect from
time to time.

                  "ERISA Affiliate" means each trade or business (whether or not
incorporated) that together with Borrower or any of Borrower's Affiliates would
be treated as a single employer under Section 414 of the Code for any purpose or
would be treated as a single employer under Section 4001 of ERISA.

                  "Event of Default" shall have the meaning given to that term
in Section 9.1.

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

                  "General Account" means Borrower's disbursement account with
Lender.

                  "Indebtedness" means all items of borrowed money, guarantees
and capital lease obligations.

                  "Interest Expense" means for the period measured the total
interest expense paid or payable during such period.

                  "Inventory" shall have the meaning given to such term in
Section 3.1(D) hereof.

                  "Laws" means all ordinances, statutes, rules, regulations,
guidelines, orders, injunctions, writs or decrees of any governmental or
political subdivision or agency thereof, or any court or similar entity
established by any such governmental or political subdivision or agency thereof.

                  "Legal Rate" means, at any time, the maximum rate of interest
which may be charged on any Loan under applicable Law.

                  "Lender" shall have the meaning given to that term in the
preamble of this Agreement.

                  "Multiemployer Plan" means a Plan defined as such in Section
3(37) of ERISA to which Borrower or any ERISA Affiliate has or had any
obligation to contribute or has made contributions.

                  "Obligations" means all loans, advances, debts, liabilities,
obligations, Indebtedness, covenants and duties owing by Borrower to Lender of
every kind and description (whether or not evidenced by any note or other
instrument and whether or not for the payment of money), direct or indirect,
primary or secondary, absolute or contingent, fixed or otherwise (including
obligations of

                                       3
<PAGE>   5

performance) due or to become due, now existing or hereafter arising, including
without limitation all principal, interest, charges, expenses, attorneys' fees
and other sums chargeable to Borrower by Lender pursuant to this Agreement, the
1999 Term Note, the Revolving Note or any Related Agreements, all reimbursement
obligations under letters of credit, all obligations under any and all interest
rate swap agreements or any agreement in the nature thereof, all obligations
under any foreign exchange agreements of any nature whatsoever, and the
performance and fulfillment by Borrower of all of the terms, conditions,
promises, covenants and provisions contained in this Agreement, the Revolving
Note, the 1999 Term Note or any Related Agreement.

                  "PBGC" means the Pension Benefit Guaranty Corporation
established under Title IV of ERISA or any other governmental agency, department
or instrumentality succeeding to the functions of said corporation.

                  "Permitted Encumbrances" means (A) liens incurred or deposits
made in the ordinary course of Borrower's business in connection with worker's
compensation, unemployment insurance and other types of social security, or to
secure Borrower's performance of leases, utility contracts, franchises,
licenses, statutory obligations, surety and appeal bonds, performance and
return-of-money bonds and other similar obligations (exclusive of obligations
for the payment of borrowed money) incurred in the ordinary course of Borrower's
business; (B) liens permitted pursuant to the provisions of Section 7.1; (C)
liens arising from judgments, attachments or decrees, provided however said
liens do not otherwise give rise to a breach of warranty, covenant, negative
covenant or other Event of Default hereunder; (D) inchoate liens which have not
ripened into liens otherwise not permitted hereunder; and (E) taxes not yet due
and payable.

                  "Person" means a corporation, association, general or limited
partnership, limited liability company, limited liability partnership,
organization, business, joint venture, individual, sole proprietorship,
government or political subdivision thereof or a governmental agency.

                  "Plan" means any employee pension or benefit plan (A) to which
Section 4021 of ERISA applies to Borrower or any ERISA Affiliate; or (B) to
which Borrower or any ERISA Affiliate made, or was required to make,
contributions at any time within the five (5) years preceding the Closing Date.

\ "Prohibited Transaction" means with respect to any Plan or Multiemployer Plan
any transaction described in Section 406 of ERISA which is not exempt by reason
of Section 408 of ERISA and any transaction described in Section 4975 of the
Code which is not exempt by reason of Section 4975(c)(2) or 4975(d) of the Code.

                  "Related Agreements" means those documents described on the
Index of Related Agreements attached hereto as SCHEDULE 1.1(b).

                  "Reportable Event" means (A) a reportable event described in
Section 4043 of ERISA; (B) a withdrawal by a substantial employer from any Plan
that has two or more contributing sponsors at least two of which are not under
common control, as referred to in Section 4063(b) of ERISA; or

                                       4
<PAGE>   6

(C) a cessation of operations at a facility causing more than twenty percent
(20%) of any Plan's participants to be separated from employment, as referred to
in Section 4068(f) of ERISA.

                  "Revolving Line of Credit" shall have the meaning given to
that term in Section 2.1.

                  "Revolving Note" shall have the meaning given to that term in
Section 2.1.

                  "Senior Management" shall mean the Chief Financial Officer or
the Chief Executive Officer.

                  "Solvent" means, as to any Person, that such Person (A) has
capital sufficient to carry on its business and transactions and all business
and transactions in which it is about to engage, (B) is able to pay its debts as
they mature, (C) owns property having both a fair salable value in the ordinary
course of such Person's business and a fair valuation that is greater than the
amount required to pay its Indebtedness (D) has not been dissolved, terminated
or ceased normal business operations, a receiver has not been appointed in
connection with such Person and no proceedings under bankruptcy, insolvency or
other similar laws have been commenced by or against such Person.

                  "Subsidiary" means, with respect to any Person, any
corporation or other entity of which capital stock or other ownership interests
having ordinary voting power to elect a majority of the board of directors or
other Persons performing similar functions is at the time in question directly
or indirectly owned or controlled by such Person.

                  "1999 Term Loan" shall have the meaning given to that term in
Section 2.6.

                  "1999 Term Note" shall have the meaning given to that term in
Section 2.6.

                  "Unfunded Vested Liabilities" means, with respect to any Plan,
the amount (if any) by which the present value of all vested benefits under the
Plan exceeds the fair market value of all Plan assets allocable to such
benefits, as determined on the most recent valuation date of the Plan and in
accordance with the provisions of ERISA for calculating the potential liability
of Borrower or any ERISA Affiliate to the PBGC or the Plan under Title IV of
ERISA.

         1.2 ACCOUNTING TERMS. Subject to the provisions of Section 9.4, all
accounting terms not specifically defined herein shall be construed in
accordance with GAAP consistent with those applied in the preparation of the
financial statements required hereunder and in connection with the financial
covenants set forth herein.

SECTION 2.  THE LOAN TRANSACTIONS

         Lender shall make the Loans to Borrower upon the following terms and
conditions:

         2.1 REVOLVING LINE OF CREDIT. Subject to the terms and conditions set
forth in this Agreement, Lender will make advances ("Revolving Loans") to
Borrower up to, but not exceeding, the principal amount of Seven Hundred Fifty
Thousand Dollars ($750,000) ("Revolving Line of

                                       5
<PAGE>   7

Credit"). Within the foregoing limit, Borrower may borrow, repay and reborrow
Revolving Loans at any time or from time to time from the Closing Date until
demand is made. Upon DEMAND all principal, interest and other amounts
outstanding in respect of Revolving Loans shall immediately become due and
payable without any further action on the part of Lender. Borrower's obligation
to repay Revolving Loans and to pay interest, fees, costs and expenses in
connection therewith, shall be evidenced by Borrower's Revolving Line of Credit
Note of even date hereof (the "Revolving Note").

         2.2 ADVANCES UNDER THE REVOLVING LINE OF CREDIT.

                  (I) If Borrower wishes to receive a Revolving Loan, Borrower
shall make a written, telecopy or telephonic request (subject to written
confirmation at Lender's request) for an advance no later than 2:00 p.m. Boston,
Massachusetts, on the Banking Day which precedes the Banking Day proposed for
such Loan. Each such request for a Revolving Loan shall be irrevocable and shall
specify the aggregate principal amount and the date of such requested Loan.
Lender shall not be obligated to honor any such request if at the time such
request is made any Default or any Event of Default shall exist.

                  (II) Lender shall make each Revolving Loan by depositing the
proceeds thereof in Borrower's Account. Each request by Borrower for a Revolving
Loan shall constitute, without more, a representation and warranty by Borrower
that no Default or Event of Default has occurred and is continuing.

         2.3 PREPAYMENT REQUIRED UNDER THE REVOLVING LINE OF CREDIT/ZERO
BALANCE.
         If at any time the aggregate outstanding balance of the Revolving Loans
shall exceed Seven Hundred Fifty Thousand Dollars ($750,000), the Borrower shall
immediately repay the Revolving Line of Credit in an amount equal to such
excess. Borrower shall maintain a zero (0) balance under the Revolving Line of
Credit for thirty (30) consecutive days during each loan year.

         2.4 MANNER, TIME AND APPLICATION OF SCHEDULED PAYMENTS OF THE REVOLVING
LINE OF CREDIT.

                  (A) All scheduled payments made by Borrower hereunder on
account of principal, interest, fees, costs and expenses shall be made to Lender
on their respective due dates in immediately available funds not later than
11:00 a.m., Boston, Massachusetts, at Lender's address set forth herein or such
other address as Lender may from time to time specify in writing. Each payment
by Borrower with respect to the Revolving Line of Credit will be applied, FIRST,
on account of fees, costs and expenses that are due and payable by Borrower
hereunder, SECOND, on account of any interest on the Revolving Line of Credit
then due and owing, THIRD, to the principal balance of the Revolving Line of
Credit outstanding.

                  (B) Borrower hereby authorizes Lender to charge, from time to
time, against Borrower's General Account or any of Borrower's other accounts
with Lender any amount so due.

         2.5 USE OF PROCEEDS UNDER THE REVOLVING LINE OF CREDIT. Borrower shall
use the proceeds of advances under the Revolving Line of Credit only for
Borrower's working capital purposes.

                                       6
<PAGE>   8

         2.6 1999 TERM LOAN/ADVANCES. Subject to the terms and conditions set
forth in this Agreement and the 1999 Term Note as defined below, Lender will
make advances to Borrower up to, but not exceeding the amount of $750,000.
Borrower's obligation to repay the 1999 Term Loan and to pay principal,
interest, fees, costs and expenses in connection therewith, shall be evidenced
by Borrower's Commercial Promissory Note of even date hereof (the "1999 Term
Note"). Advances shall be made upon Borrower's request in an amount not to
exceed the invoice cost of the equipment to be constructed, purchased or leased
from the proceeds of the advance. Borrower shall provide Lender such
documentation related to said advance and equipment being constructed, purchased
or leased as Lender may reasonably request. If said equipment is constructed by
Borrower, the invoice amount shall include the cost of materials and labor.

         2.7 MANNER, TIME AND APPLICATION OF SCHEDULED PAYMENTS OF THE 1999 TERM
LOAN.

                  (A) All scheduled payments made by Borrower hereunder on
account of principal, interest, fees, costs and expenses shall be made to Lender
on their respective due dates in immediately available funds not later than
11:00 a.m., Boston, Massachusetts, at Lender's address set forth herein or such
other address as Lender may from time to time specify in writing. Each payment
by Borrower with respect to each 1999 Term Loan will be applied, FIRST, on
account of fees, costs and expenses that are due and payable by Borrower
hereunder, SECOND, on account of any interest on the 1999 Term Loan then due and
owing, THIRD, to the principal balance of the 1999 Term Loan outstanding.

                  (B) Borrower hereby authorizes Lender to charge, from time to
time, against Borrower's Account or any of Borrower's other accounts with Lender
any amount so due.

         2.8 USE OF PROCEEDS UNDER THE 1999 TERM LOAN. Borrower shall use the
proceeds of the advance under the 1999 Term Loan to acquire, construct and/or
lease machinery and equipment.

SECTION 3.  SECURITY INTERESTS

         3.1 GRANT OF SECURITY INTEREST BY BORROWER. To secure Borrower's timely
payment and performance of all of the Obligations (other than those arising
under the Revolving Line of Credit until such time as Lender and Borrower agree,
if ever, that the Revolving Line of Credit shall be a secured loan), Borrower
hereby mortgages, pledges, transfers, conveys and delivers to Lender, and grants
to Lender an irrevocable, unconditional and continuing first and prior security
interest in and lien upon the following property of Borrower (the "Collateral"):

                  (A) All accounts and accounts receivable related to or arising
from the rendition of services by Borrower in the ordinary course of its
business or arising in any other manner and all other accounts, bank accounts,
contracts, contract rights, notes, documents, chattel paper, instruments,
acceptances, drafts or other forms of obligations and receivables (collectively,
the "Accounts"), whether or not the same are listed on any schedules,
assignments or reports furnished to Lender from time to time, and whether such
Accounts are now existing or are created at any time hereafter, together with
all goods, inventory and merchandise returned by or reclaimed by or repossessed
from customers wherever such goods, inventory and merchandise are located, and
all proceeds thereto including without limitation, proceeds of insurance thereon
and all guaranties, securities, and liens which

                                       7
<PAGE>   9

Borrower may hold for the payment of any such Accounts, including without
limitation, all rights of stoppage in transit, replevin and reclamation and all
other rights and remedies of an unpaid vendor or lienor, and any liens held by
Borrower as a mechanic, contractor, subcontractor, processor, materialman,
machinist, manufacturer, artisan, or otherwise;

                  (B) All documents, instruments, securities, documents of
title, policies and certificates of insurance, guaranties, securities, chattel
paper, deposits, tax refunds, proceeds of insurance, proceeds of an eminent
domain or condemnation award, cash, liens or other property (other than real
property), which are now or may hereinafter be in the possession of the Borrower
or as to which the Borrower may now or hereafter control possession by documents
of title or otherwise, including, but not limited to, all property allocable to
unshipped orders relating to Accounts and Inventory (as herein defined);

                  (C) All books, records, customer lists, supplier lists,
ledgers, evidences of shipping, invoices, purchase orders, sales orders and all
other evidences of Borrower's business records, including all cabinets, drawers,
etc. that may hold the same; computer records, lists, software, programs,
wherever located, all whether now existing or hereafter arising or acquired;

                  (D) All Borrower's inventory, whether now owned or hereafter
acquired, including without limitation: (i) all goods manufactured or acquired
for sale or lease, and any piece goods, raw materials, work in process and
finished merchandise, findings or component materials, and all supplies, goods,
incidentals, office supplies, packaging materials, and any and all items
including machinery and equipment used or consumed in the operation of the
business of Borrower or which contribute to the finished product or to the sale,
promotion and shipment thereof, in which Borrower now or at any time hereafter
may have an interest, whether or not such inventory is listed in this agreement
on any reports furnished to Lender from time to time; (ii) all inventory whether
or not the same is in transit or in the constructive, actual or exclusive
occupancy or possession of Borrower or is held by Borrower or by others for the
Accounts, including without limitation, all goods covered by purchase orders and
contracts with suppliers and all goods billed and held by suppliers; (iii) all
inventory which may be located on premises of Borrower or of any carrier,
forwarding agents, truckers, warehousemen, vendors, selling agents or third
parties; (iv) all general intangibles relating to or arising out of inventory;
and (v) all proceeds and products of the foregoing resulting from the sale,
lease or other disposition of inventory, including cash, accounts receivable,
other non-cash proceeds and trade-ins (collectively, "Inventory");

                  (E) All general intangibles, including without limitation, tax
refunds, customer lists, proceeds of insurance, unearned insurance premium
refunds, eminent domain awards, condemnation proceeds, and copyrights,
tradenames, trademarks, applications therefor, and licenses to any copyright,
trademark, or tradename that Borrower now owns, has the right to use or may
hereafter own or acquire the right to use. Notwithstanding anything to the
contrary herein, any and all patents currently owned or hereafter acquired by
Borrower shall be specifically excluded from general intangibles.

                  (F) All equipment, machinery, appliances, and furniture and
fixtures, now existing or hereafter arising, wherever located, and all
contracts, contract rights and chattel paper arising out of

                                       8
<PAGE>   10

any lease of any of the foregoing or otherwise (specifically excluding purchase
money security interests in leased equipment and machinery);

                  (G) All other collateral in which Borrower may hereafter grant
to Lender a security interest; and

                  (H) All renewals, substitutions, replacements, additions,
accessions, proceeds, and products of any and all of the foregoing.

                  (I) Specifically excluded from the Collateral are any and all
Government Contracts and Grants entered into by Borrower.

         3.2 CONTINUOUS SECURITY INTEREST. Borrower and Lender expressly
acknowledge that the security interest granted hereunder shall remain as
security for payment and performance of the Obligations, whether now existing or
which may hereafter be incurred by future advances, or otherwise. The notice of
the continuing grant of this security interest therefore shall not be required
to be stated on the face of any document representing any such Obligations, nor
otherwise identify it as being secured hereby.

         3.3 PRIORITY OF THE LIENS AND SECURITY INTERESTS. The liens and
security interests granted to Lender pursuant to Section 4.1 shall constitute
valid and enforceable first priority liens and security interests against the
Collateral, prior in right to all other liens, security interests, charges and
other encumbrances.
Borrower shall not take any action to impair or defeat the foregoing priority.

SECTION 4.  CONDITIONS PRECEDENT TO THE LOANS

         4.1 INITIAL LOANS. Lender's obligation to make any initial Revolving
Loan or to advance funds under the 1999 Term Loan on the Closing Date is subject
to delivery by Borrower, prior to or at the time of the making thereof of each
of the documents and items described on the Index of Related Agreements attached
as SCHEDULE 1.1(b) except to the extent said items are listed on said SCHEDULE
1.1(b) to be delivered post closing.

         4.2 SUBSEQUENT LOANS. Lender's obligation to make any Revolving Loan or
to advance additional funds under the 1999 Term Loan subsequent to the Closing
Date shall be subject to the further conditions precedent that on the date on
which Lender makes such advance:

                  (A) Borrower shall have received and provided to Lender such
other approvals, opinions, consents or documents as Lender may reasonably
request; and

                  (B) the following statements shall be true, and each request
for a Revolving Loan or an advance under the 1999 Term Loan shall be deemed to
be a representation and warranty by Borrower to the effect that, at and as of
the date of such request:

                  (I) the representations and warranties contained in Section 5
are true and correct on and as of the date of such request as though made on and
as of such date; and

                                       9
<PAGE>   11

                  (II) no Default or Event of Default has occurred and is
continuing, or would result from such advance.

SECTION 5.  REPRESENTATIONS AND WARRANTIES

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

         5.1 CORPORATE EXISTENCE, GOOD STANDING, ETC. Borrower is and will
continue to be a corporation duly organized, validly existing and in good
standing under the Laws of the Commonwealth of Massachusetts. Borrower is and
will continue to be duly qualified and licensed to transact business in all
states or jurisdictions except those jurisdictions in which Borrower's failure
to so qualify or be so licensed or in good standing would not, individually or
in the aggregate, have a material adverse effect on Borrower's business,
operations, affairs, condition, properties or prospects.

         5.2 LICENSES, WAIVERS, MATERIAL CONTRACTS, ETC. Borrower possesses all
material licenses, waivers, consents, rights, permits, orders and other
governmental authorizations and approvals, and all material franchises,
contracts and agreements, necessary to carry on its business as presently
conducted. All of such licenses, waivers, consents, rights, permits, orders,
authorizations, approvals, franchises, contracts and agreements are in full
force and effect and there is no violation or failure of compliance or
allegation of such violation or failure of compliance on the part of Borrower
with respect to any of the foregoing.

         5.3 BOOKS AND RECORDS. Borrower's principal place of business is
located at Borrower's address set forth in Section 10.8; all of Borrower's books
and records are kept at such principal and only place of business; and Borrower
does not invoice receivables from or maintain records relating to receivables at
any location other than such principal place of business. Borrower has not
changed its name, been the surviving corporation in any merger, acquired any
business, or changed its chief executive office within five (5) years prior to
the date of this Agreement.

         5.4 POWER AND AUTHORITY. Borrower has the corporate power to execute,
deliver and carry out this Agreement, the 1999 Term Note, the Revolving Note and
the Related Agreements to which it is a party and to incur the Obligations, and
has taken all necessary corporate action to authorize its execution, delivery
and performance of this Agreement, the 1999 Term Note, the Revolving Note and
the Related Agreements to which it is a party and its incurring of the
Obligations.

         5.5 NO VIOLATION. Borrower's execution and delivery of this Agreement,
the 1999 Term Note, the Revolving Note and the Related Agreements to which it is
a party and compliance by Borrower with all of the terms and provisions hereof
and thereof, will not violate any provision of any existing Law or any writ,
order, judgment, injunction, determination, award or decree of any court or
governmental instrumentality or of Borrower's certificate of incorporation or
bylaws or any agreement or instrument to which Borrower is a party or which is
binding upon Borrower or its assets, and will not result in, or require, the
creation or imposition of any lien, security interest, charge or encumbrance of
any nature whatsoever upon or in any of Borrower's assets except as contemplated
by this

                                       10
<PAGE>   12

Agreement, and no consent or approval of any other party (including Borrower's
shareholders) and no consent, license, approval or authorization of, exemption
of or registration or declaration with, any governmental bureau or agency
(federal, state, municipal or otherwise) or any other Person is required in
connection with the execution, delivery, performance, validity and
enforceability of this Agreement, the 1999 Term Note, the Revolving Note and the
Related Agreements.

         5.6 VALID AND BINDING AGREEMENT. This Agreement, the 1999 Term Note,
the Revolving Note and the Related Agreements delivered pursuant hereto will be
valid and binding upon and enforceable against Borrower in accordance with their
respective terms, subject to equitable exceptions.

         5.7 LITIGATION; CLAIMS. Except as set forth in SCHEDULE 5.7, there is
not pending, nor to Borrower's knowledge is there threatened, against Borrower
any action, suit, order, notice, claim, investigation or proceeding at law or in
equity or by or before any governmental instrumentality or other agency which
could materially adversely affect Borrower or any of Borrower's properties or
rights, or which could have a material adverse effect upon Borrower's business
operations or financial condition, or which could involve in the aggregate the
payment by Borrower of $100,000 or more or singularly the payment by Borrower of
$50,000 or more (whether or not covered by insurance) if adversely determined.

         5.8 EXISTING DEFAULTS. Except as set forth on SCHEDULE 5.8, Borrower is
not in default with respect to the payment or performance of any of its material
obligations or in the performance of any material covenants or material
conditions to be performed by Borrower pursuant to the terms and provisions of
any agreement or instrument to which Borrower is a party or by which it or its
property may be bound, which default has not been waived in writing, including
any leases of premises on which the Collateral is or may be located, and
Borrower has received no notice of default thereunder.

         5.9 TITLE TO PROPERTIES. Borrower has good and marketable title to all
of its properties, real and personal and such properties are subject only to the
Permitted Encumbrances.

         5.10 COMPLIANCE WITH LAWS. Borrower is in compliance in all material
respects with, and has not received any notice that it is not in compliance
with, all applicable Laws with respect to:

                  (A) Any restrictions, specifications or other requirements
pertaining to products which it sells or leases or to the services it performs;

                  (B) The conduct of its business operations; and

                  (C) The use, maintenance and operation of the property leased
or owned by it in the operation of its business.

         5.11 GUARANTIES, ETC. There are no outstanding contracts or agreements
of guaranty or suretyship made by Borrower or to which Borrower is a party or to
which Borrower or any of its assets are subject, except the Related Agreements
and as set forth in SCHEDULE 5.11.

                                       11
<PAGE>   13

         5.12 FINANCIAL STATEMENTS. Except as previously disclosed to Lender,
Borrower's financial statements heretofore furnished to Lender, including any
schedules and notes pertaining thereto, have been prepared on a review basis,
and fully and fairly present Borrower's financial condition at the dates thereof
and the results of Borrower's operations for the periods covered thereby, and
there has been no material adverse change in Borrower's financial condition or
business from June 30, 1999, to the date of this Agreement. Said financial
statements shall be prepared in conformity with GAAP and shall fairly represent
in all material respects the financial condition of the Borrower.

         5.13 EXISTING INDEBTEDNESS. Borrower has no material Indebtedness of
any nature, except as permitted by this Agreement and Borrower does not know of,
or have reasonable grounds to know of, any basis for the assertion against it of
any material Indebtedness of any nature.

         5.14 TAX RETURNS. Except as set forth in SCHEDULE 5.14, Borrower has
filed or caused to be filed and will continue to file or cause to be filed all
tax returns required to be filed and has paid and will continue to pay all
federal, state and local taxes shown to be due and payable on said returns and
all assessments made against it (except such as are being contested in the
manner described in Section 5.7) and has made or caused to be made adequate
provision for the payment of such taxes, assessments or other charges accruing
but not yet payable, and no claims for any of such taxes are being asserted with
respect to such taxes. Except as set forth in SCHEDULE 5.14, Borrower's federal
tax returns have not been audited, or if audited have been accepted by the
Internal Revenue Service as filed or amended.

         5.15 COMPLIANCE WITH THE CODE AND ERISA. Borrower is in compliance in
all material respects with all applicable provisions of the Code and ERISA with
respect to all Plans. Neither a Reportable Event nor a Prohibited Transaction
has occurred with respect to any Plan; no notice of intent to terminate a Plan
has been filed with any Person nor has any Plan been terminated; no circumstance
exists which constitutes grounds under Section 4042 of ERISA entitling the PBGC
to institute proceedings to terminate, or appoint a trustee to administer, a
Plan, nor has the PBGC instituted any such proceedings; and neither Borrower nor
any ERISA Affiliate has incurred any liability to the PBGC or the U.S.
Department of Labor under ERISA. Neither the PBGC nor the U.S. Department of
Labor has imposed a lien on the assets of Borrower or any ERISA Affiliate.

         5.16 ENVIRONMENTAL MATTERS. To the best of its knowledge, Borrower:

                  (A) has obtained all permits, licenses and other
authorizations which are required under all environmental Laws, including Laws
relating to emissions, discharges, releases or threatened releases of
pollutants, contamination, chemicals, or industrial, toxic or hazardous
substances or waste into the environment (including air, surface water, ground
water or land), or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, chemicals, or industrial, toxic or hazardous substance
or wastes;

                  (B) is in material compliance with all terms and conditions of
all such required permits, licenses and authorizations, and also is in
compliance with all other limitations, restrictions, conditions, standards,
prohibitions, requirements, obligations, schedules and timetables contained in
such Laws or contained in any Law, plan, order, decree, judgment, injunction,
notice or demand letter issued, entered, promulgated or approved thereunder;

                                       12
<PAGE>   14

                  (C) has never caused any oil, friable asbestos, hazardous
waste, hazardous material or other waste or material regulated or limited by
applicable federal, state or local environmental Law ("Hazardous Material") to
be spilled, placed, located or disposed of on, under or about, nor are any
Hazardous Materials now existing on, under or about, any premises owned or
leased by it (collectively, the "Premises") or into the atmosphere, any body of
water or any wetlands in excess of the maximum permitted regulatory levels;

                  (D) has no knowledge of any notice of any violation, or lien
or any other notice issued by any governmental agency or other Person with
respect to the environmental condition of the Premises.

                  (E) Borrower has not received any notice from any Person with
respect to any of the matters described in this Section 5.16.

         5.17 SOLVENCY. After giving effect to the consummation of each
transaction contemplated by this Agreement and after the 1999 Term Loan and
Revolving Line of Credit, Borrower will be Solvent.

         5.18 NO UNTRUE STATEMENTS, ETC. No representation or warranty by
Borrower contained in this Agreement and no statement contained in any
certificate or other document furnished or to be furnished by Borrower pursuant
to this Agreement, or in connection with the transactions contemplated hereby,
contains, or at the time of delivery will contain, any untrue statement of any
material fact or omits or will omit any statement of any material fact necessary
to make it not misleading.

         5.19 ELIGIBLE ACCOUNTS. Each Eligible Account, at the time it comes
into existence, will be a true and correct statement of (i) the bona fide
indebtedness of the account debtor named thereon; and (ii) the amount of the
Account for such inventory sold and delivered to, or for services performed for
and accepted by, the account debtor, net of any charges, discounts, adjustments
or other reductions whatsoever.

         5.20 SURVIVAL. Except to the extent the representation and warranty
relates to a prior date, all of Borrower's representations and warranties set
forth in this Section 6 shall survive until all Obligations are finally and
indefeasibly satisfied in full.

SECTION 6.  AFFIRMATIVE COVENANTS

         Borrower covenants and agrees that so long as any of the Obligations
remain outstanding and unpaid, it will perform and observe each and all of the
following covenants and agreements:

         6.1 ADDITIONAL INFORMATION. Borrower will furnish to Lender, with
reasonable promptness, such information regarding Borrower's business, affairs,
operations and financial condition as Lender may reasonably request and, upon
reasonable prior notice, give any representative of Lender (i) access during
normal business hours to, and permit Lender to examine and copy and make
extracts from, any

                                       13
<PAGE>   15

and all books, records, accounts and documents in Borrower's possession relating
to Borrower's affairs; (ii) access during normal business hours to inspect any
of Borrower's properties; and (iii) access to discuss Borrower's affairs,
finances and accounts with any of Borrower's officers and/or any independent
certified public accountants of Borrower; provided that Lender's access to
Borrower's properties and officers and employees shall be scheduled so as not to
materially interfere with Borrower's business operations.

         6.2 TAXES. Borrower will pay and discharge at or before the date any of
the same would become delinquent, all taxes including without limitation payroll
taxes, assessments, claims and charges, except where the same are being
contested in good faith by appropriate proceedings, and will maintain
appropriate reserves for the accrual of any of the same.

         6.3 MAINTENANCE OF CORPORATE EXISTENCE; PROPERTIES. Borrower will do or
cause to be done all things necessary to: preserve and keep in full force and
effect its corporate existence, rights, franchises, privileges and contracts,
and comply, in all respects, with all Laws applicable thereto.

         6.4 REPORTING REQUIREMENTS. Borrower will furnish or cause to be
furnished to Lender the following financial statements and other information:

                  (A) Within one hundred and twenty (120) calendar days after
the close of each fiscal year of Borrower the Annual Report of the Borrower on
Form 10-K as filed with the Securities and Exchange Commission.

                  (B) Within forty-five (45) calendar days of the close of each
quarter, the Quarterly Report of the Borrower on Form 10-Q as filed with the
Securities and Exchange Commission

                  (C) A Compliance Report prepared annually by Senior Management
on a Lender approved form showing whether the provisions of Section 8 have been
complied with and stating that to the best of Senior Management's knowledge
during the course of their review nothing came to their attention that caused
them to believe that Borrower failed to comply with the covenants, provisions or
conditions of Section 8.

                  (D) Promptly after the filing or receiving thereof, copies of
all reports, including annual reports, and notices which Borrower or any ERISA
Affiliate files with or receives from the Internal Revenue Service, the PBGC or
the U.S. Department of Labor under the Code or ERISA.

                  (E) Such other financial information as Lender may
periodically require from the Borrower.

         6.5 NOTICES TO LENDER. Borrower will promptly give notice in writing to
Lender of: (i) the occurrence of any Default or Event of Default of which it
knows and (ii) all litigation and/or governmental proceedings affecting it in
which the amount involved is $250,000 or more, whether or not covered by
insurance.

                                       14
<PAGE>   16

         6.6 MAINTENANCE OF BANK ACCOUNTS. Borrower will maintain its main
operating account with Lender.

         6.7 MAINTENANCE OF PROPERTY. Borrower will maintain its equipment, real
estate and other properties, including the Collateral, in good condition and
repair (normal wear and tear excepted), and will pay and discharge, or cause to
be paid and discharged when due the cost of repairs to or maintenance of the
same, and will pay or cause to be paid when due all rental or mortgage payments
due on such real estate.

         6.8 LIABILITY INSURANCE. Borrower shall at its expense, keep and
maintain such public liability and third party property damage insurance in the
minimum amount of $1,000,000 and with such deductibles as are reasonably
acceptable to Lender and shall deliver to Lender the original (or a certified
copy) of each policy of insurance and evidence of the payment of all premiums
therefor. Such policies of insurance shall contain an endorsement showing Lender
as additional insured thereunder and shall provide that said policy cannot be
terminated or amended without the insurer providing thirty (30) days prior
written notice to Lender.

         6.9 CASUALTY INSURANCE. Borrower shall at Borrower's expense, keep and
maintain its assets, including its buildings, machinery, equipment, Inventory
and all its other tangible personal property, insured against loss or damage by
fire, explosion and other hazards customarily insured under extended and unnamed
perils coverage and such other risks ordinarily insured against by other prudent
owners or users of such properties in similar businesses in an amount at least
equal to the full insurable value of all such property and with such deductibles
as are reasonably acceptable to Lender. Borrower shall deliver to Lender the
original (or a certified copy) of each policy of insurance and evidence of the
payment of all premiums therefor. All of the policies of insurance pertaining to
Borrower's personal property assets (excluding Borrower's real property) shall
contain an endorsement showing all losses payable to Lender as lender loss payee
and otherwise in form and substance reasonably satisfactory to Lender and shall
provide that such policy cannot be terminated or amended without the insurer
providing thirty (30) days prior written notice to Lender.

         6.10 ATTORNEY-IN-FACT. Borrower hereby agrees to consult with Lender in
making, adjusting, settling and receiving proceeds of claims under policies of
insurance. If Borrower at any time or times hereafter shall fail to obtain or
maintain any of the policies of insurance required above or to pay any premium
in whole or in part relating thereto, then Lender, without waiving or releasing
any Obligation of or Default or Event of Default by Borrower hereunder, at any
time or times thereafter, shall have the right, but not the obligation, in
Lender's sole discretion, to obtain and maintain such policies of insurance and
pay such premiums and take any other action with respect thereto as Lender deems
advisable, and all sums so expended, together with interest thereon at the rate
prescribed in the 1999 Term Note shall be part of the Obligations, payable ON
DEMAND and otherwise repaid as provided herein and secured by the Collateral.

                  (A) Borrower hereby assigns any and all other sums which may
become payable under such property and casualty and liability insurance policies
to Lender as additional security for the Obligations. Notwithstanding any other
provision of this Agreement, provided no Default or Event of Default has
occurred and is continuing, Borrower shall have the right to use the proceeds of
insurance

                                       15
<PAGE>   17

to replace any equipment or other personal property damaged by fire or other
hazard covered by Borrower's casualty insurance. Any such insurance proceeds
received by Lender shall be held as further security and Collateral hereunder,
and Lender shall distribute such proceeds to Borrower as the costs of repair or
replacement of the insured property or other expenses relating to such loss
become due and payable by Borrower and thereafter shall promptly distribute to
Borrower such amount of such proceeds as are not needed for repair or
replacement; PROVIDED that if at any time there is in existence an Event of
Default, any such insurance proceeds may, in Lender's sole discretion, be
applied, in whole or in part, to the payment of any of the Obligations.

                  (B) Borrower shall furnish Lender with certificates or other
evidence satisfactory to Lender of compliance with the provisions of Sections
6.8 and 6.9.

         6.11 FURTHER ASSURANCES. At any time or from time to time upon Lender's
request, Borrower shall execute and deliver, or cause to be executed and
delivered, to Lender and/or such other Persons as Lender may reasonably request
such further documents and instruments and do such other acts and things and
provide such additional information as Lender may reasonably request in order
fully (i) to accomplish the purposes and carry out the terms of this Agreement,
(ii) to be informed of Borrower's status and affairs, and (iii) to vest more
completely in and assure to Lender its rights under this Agreement, the
Revolving Note, the 1999 Term Note, any Related Agreements and in and to any
Collateral.

         6.12 LOSSES, ETC. Borrower shall promptly notify Lender in writing of
any loss, theft, damage, destruction, encumbrance, levy, seizure or attachment
of or on any of Borrower's assets if the asset is material to Borrower's
business and has not been promptly replaced.

         6.13 PLAN FUNDING. Borrower shall fund all of its "Defined Benefit
Plans" (as defined in ERISA) in accordance with no less than the minimum funding
standards of ERISA.

         6.14 COLLECTION OF ACCOUNTS. Borrower shall collect its Accounts and
sell its Inventory only in the ordinary course of business.

         6.15 PAYMENT OF INDEBTEDNESS. Borrower will pay when due (or within
applicable grace periods) all Indebtedness due third persons, except when the
amount thereof is being contested in good faith by appropriate proceedings and
with adequate reserves therefor being set aside on Borrower's books.

         6.16 CHANGES OF LOCATION. Borrower shall notify Lender at least thirty
(30) calendar days in advance of any change in the location of any of Borrower's
place of business or of the establishment of any new, or the discontinuance of
any existing, place of business.

         6.17 FIELD AUDITS. Lender shall have the right to audit the Collateral
at such times (during normal business hours) as it reasonably deems appropriate.
The Borrower shall be responsible for the cost of one (1) audit per year
provided, however, Borrower shall be responsible for the cost of additional
audits (at the prevailing cost) if an Event of Default hereunder has occurred
and is continuing beyond applicable cure periods, if any).

                                       16
<PAGE>   18

         6.18 YEAR 2000. Borrower has reviewed its business operations which
could be adversely affected by, and has developed a program to address on a
timely basis, the "Year 2000 Problem" (i.e., the risk that computer applications
used by the Borrower, its suppliers and/or providers may be unable to recognize
and properly perform date-sensitive functions involving certain dates prior to
and after December 31, 1999). Borrower reasonably believes that the "Year 2000
Problem" will not have a material adverse impact on the business operations or
financial condition of Borrower. Borrower will provide Lender updates on the
progress of Borrower's Year 2000 Program and will provide promptly to Lender any
assessment of Borrower's Year 2000 efforts conducted by any third party.

SECTION 7.  NEGATIVE COVENANTS

         So long as any Obligations remain outstanding and unpaid, Borrower
shall not without Lender's prior written consent, which consent may be withheld
in Lender's sole discretion:

         7.1 NO LIENS. Except for liens and encumbrances in favor of Lender and
Permitted Encumbrances, create, assume or suffer to exist, any mortgage, pledge,
encumbrance, lien, security interest or charge of any kind upon any of its
Accounts, Inventory, machinery or equipment (except for purchase money security
interests), real estate or other assets, whether now owned or hereafter acquired
by Borrower.

         7.2 NO OTHER INDEBTEDNESS. Borrow funds from or otherwise incur or
permit to exist any other Senior Indebtedness to any Person other than Lender
without providing Lender with thirty (30) days prior written notice, except
Indebtedness incurred in connection with purchase money financings consented to
by Lender and Indebtedness described on SCHEDULE 5.13.

         7.3 NO MERGERS, ETC. Merge or consolidate with or into any other
Person, dissolve or liquidate; materially amend its certificate of incorporation
or bylaws; change its name; enter into any reorganization or recapitalization;
or reclassify its capital stock as debt without providing Lender with prior
written notice.

         7.4 NO SALES OF ASSETS. Except in the ordinary course of business,
sell, exchange or otherwise dispose of a material part of its assets, or any
part thereof, or any interest therein.

         7.5 NO CONTINGENT LIABILITIES. Agree to purchase or repurchase or
assume, guaranty, endorse, agree to supply funds in excess of One Million
($1,000,000) Dollars in connection with, or otherwise become or remain liable in
connection with the obligations, stock or dividends of any Person, except for
endorsement of negotiable instruments for collection or discount in the regular
course of business.

         7.6 NO PURCHASE OF MARGIN STOCK. Directly or indirectly apply any part
of the proceeds of the Loans to the purchase or carrying of any "margin stock"
within the meaning of Regulation U of the Board of Governors of the Federal
Reserve System, or any regulations, interpretations, or rulings thereunder.

                                       17
<PAGE>   19

         7.7 FISCAL YEAR. Change its fiscal year without Lender's consent which
shall not be unreasonably withheld.

         7.8 NO PREPAYMENT OF INDEBTEDNESS. Make any prepayment on any
Indebtedness permitted by this Agreement, except Indebtedness to Lender and, in
such case, pursuant to the terms of this Agreement, the Revolving Note and the
1999 Term Note.

         7.9 NO UNTRUE STATEMENTS. Furnish Lender any certificate or other
document that contains any untrue statement of material fact or that omits to
state a material fact necessary to make such certificate or other document not
misleading in light of the circumstances under which such certificate or other
document was furnished.

SECTION 8.  FINANCIAL COVENANTS

         The following financial covenants shall be measured annually at
Borrower's fiscal year end:

         8.1. MINIMUM TANGIBLE NET WORTH COVENANT. Borrower shall maintain a
minimum Tangible Net Worth of Two Million Five Hundred Thousand Dollars
($2,500,000) at the end of fiscal year 2000, and shall increase said Tangible
Net Worth by One Hundred Thousand Dollars ($100,000) at each successive fiscal
year end thereafter, tested annually. The term "Tangible Net Worth" shall be
defined as net worth less intangible assets. Intangible assets shall be defined
as copyrights, patents, trademarks and goodwill.

         8.2 NET LOSS COVENANT. The Borrower shall not incur any net loss in
excess of One Million ($1,000,000) Dollars in any four (4) consecutive quarters
or any portion thereof.

SECTION 9.  DEFAULT

         Sections 9.1 and 9.2 shall not apply to the Revolving Note until such
time, if ever, that the Revolving Note is converted from a demand to a term
instrument.

         9.1 EVENTS OF DEFAULT. The occurrence of any one or more of the
following events shall constitute an Event of Default under this Agreement, the
Revolving Note, 1999 Term Note, all Related Agreements and any other loan
document or agreement evidencing any of the Obligations:

                  (A) Borrower shall fail to pay when due any installment of
principal or interest or any fee payable hereunder, under the Revolving Note,
the 1999 Term Note or under any Related Agreement (whether due on a date fixed
for prepayment, by acceleration, demand or otherwise).

                  (B) Borrower shall fail to observe or perform any obligation
to be observed or performed by it under this Agreement or under any loan
document or agreement evidencing any of the Obligations;

                  (C) Borrower shall fail to provide Lender with prior or
concurrent written notice of any change in the Senior Management.

                                       18
<PAGE>   20

                  (D) Any representation or warranty made in writing by or on
behalf of Borrower in this Agreement, in any Related Agreement, or in any
certificate or other document delivered pursuant hereto or thereto or otherwise
in connection with any of the transactions contemplated hereby, shall prove to
have been false, misleading or incorrect in any material respect when made or
deemed made.

                  (E) Borrower shall admit its inability to pay its debts as
they mature, shall fail generally to pay its debts as they become due, or shall
make an assignment for the benefit of its or any of its creditors.

                  (F) Proceedings in bankruptcy or for reorganization of
Borrower or for the readjustment, arrangement, composition or adjustment of any
of Borrower's debts under the federal bankruptcy act, as amended, or any part
thereof, or under any other Laws, whether state or federal, for the relief of
debtors, now or hereafter existing, (III) shall be commenced by Borrower, or
(IV) shall be commenced against Borrower and shall not be discharged, vacated,
dismissed, or stayed within sixty (60) calendar days of their commencement
against Borrower.

                  (G) A receiver, liquidator or trustee shall be appointed for
Borrower or for any substantial part of Borrower's assets, or any proceedings
shall be instituted for the dissolution or the full or partial liquidation of
Borrower and such receiver, liquidator or trustee shall not be discharged within
sixty (60) calendar days of his or her appointment, or such proceedings shall
not be dismissed or stayed within sixty (60) calendar days of their
commencement, or Borrower shall discontinue its business or materially change
the nature of its business.

                  (H) A receiver, liquidator or trustee shall be appointed by
Borrower or by Borrower for any substantial part of the assets of Borrower, or
any proceedings shall be instituted by Borrower for the dissolution or the full
or partial liquidation of Borrower, or Borrower shall discontinue its business
or materially change the nature of its business.

                  (I) Borrower shall suffer final judgments for payment of money
aggregating in excess of $250,000, and the same shall not be discharged within a
period of thirty (30) calendar days unless, pending further proceedings,
execution has not been commenced or if commenced has been effectively stayed or
bonded.

                  (J) A judgment creditor of Borrower shall obtain possession of
all or any material portion of the Collateral by any means, including
attachment, levy, distraint, replevin or self-help, which shall not be released
within thirty (30) calendar days of the date of such attachment, levy,
distraint, replevin or self-help.

                  (K) Any uninsured loss, theft, damage, destruction,
encumbrance, levy, seizure, or attachment of or on any of Borrower's assets in
violation of this Agreement, which event shall materially affect Borrower's
ability to continue to conduct its business in the normal course, and Borrower's
failure to remedy such event to Lender's satisfaction within sixty (60) calendar
days after the occurrence of such event.

                                       19
<PAGE>   21

                  (L) The placing of any material lien generally on Borrower's
property by the United States of America, or any federal, state or local
governmental agency or authority.

                  (M) A payment default by Borrower or any other material
default resulting in acceleration, under any Indebtedness for borrowed money.

                  (N) The occurrence of an event of default under any other
agreement between Lender and Borrower.

         9.2 ACCELERATION. Upon the occurrence of an Event of Default continuing
beyond any applicable notice and cure periods hereinafter set forth, Lender at
its option may declare all of the Obligations to be immediately due and payable.
Notwithstanding the foregoing, in the case of an Event of Default under Sections
9.1(E), (F), (G), (H) or (I), all of the Obligations, whether arising hereunder
or otherwise, automatically shall become due and payable without presentment,
demand, protest, notice of protest or dishonor, or other notice of any kind, all
of which are hereby expressly waived by Borrower, and without further action of
any kind by Lender.

         9.3 REMEDIES. Upon the occurrence of an Event of Default continuing
beyond any applicable notice and cure periods hereinafter set forth, with or
without accelerating the Obligations under Section 9.1 and without notice,
Lender shall have, in addition to the rights and remedies given it by this
Agreement, the Revolving Note, the 1999 Term Note and the Related Agreements,
all those rights and remedies allowed by all applicable Laws, including the
Uniform Commercial Code as enacted in any jurisdiction in which any Collateral
may be located. Notwithstanding the foregoing, in the case of an Event of
Default under Sections 9.1(E), (F), (G), (H) or (I), all of the Obligations,
whether arising hereunder or otherwise, pursue its rights and remedies as
aforesaid without presentment, demand, protest, notice of protest or dishonor,
or other notice of any kind, all of which are hereby expressly waived by
Borrower, and without further action of any kind by Lender.

         9.4 CURE PERIODS. Borrower shall have ten (10) days after a payment
default under any Note, without notice from Lender, to cure the same and with
respect to all other defaults except those arising under Section 9.1(E), (F),
(G), (H) or (I), Borrower shall have thirty (30) days after written notice from
Lender to cure said other defaults. There shall be no notice and cure with
respect to defaults arising under Section 9.1 (E), (F), (G), (H) or (I).
Notwithstanding the foregoing, Borrower shall have an additional sixty (60) days
to cure non-monetary defaults, but only to the extent the default is not
susceptible of cure within said thirty (30) day period and Borrower is
diligently pursuing same.

         9.5 NOTICE TO ACCOUNT DEBTORS. Lender may, in its sole and absolute
discretion, at any time or times after the occurrence of a Default or an Event
of Default, and without prior notice to Borrower, send a notice to Borrower's
account debtors notifying the account debtors that Borrower's Accounts have been
assigned to Lender, that Lender has a lien thereon and, at Lender's option, that
all payments upon Borrower's Accounts be made directly to Lender.

         9.6 ADDITIONAL RIGHTS OF LENDER. In addition to the foregoing but only
at such time as Lender may exercise those remedies set forth in Section 9.3,
Lender shall have the right: (a) to demand, collect, receive payment of, receipt
for, settle, compromise or adjust, and give discharges and releases

                                       20
<PAGE>   22

in respect of the Accounts or any of them; (b) to commence and prosecute any
suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect the Accounts or any of them and to enforce any other
rights in respect thereof or in respect of the goods which have given rise
thereto; (c) to defend any suit, action or proceeding brought against the
Borrower in respect of any Account or the goods which have given rise thereto;
(d) to settle, compromise or adjust any suit, action or proceeding described in
clause (b) or (c) above and, in connection therewith, to give such discharges or
releases as the Lender may deem appropriate; (e) to endorse checks, notes,
drafts, acceptances, money orders, bills of lading, warehouse receipts or other
instruments or documents evidencing or securing the Accounts or any of them; (f)
to receive, open and dispose of all mail addressed to the Borrower and to notify
the post office authorities to change the address of delivery of mail addressed
to the Borrower to such address, care of the Lender, as the Lender may
designate; and (g) generally to sell, assign, transfer, pledge, make any
agreement in respect of or otherwise deal with any Account or the goods or
service which have given rise thereto, as fully and completely as though the
Lender were the absolute owner thereof for all purposes, including contacting
Account Debtors directly for verification or other purposes. The powers
conferred on the Lender by this Agreement are solely to protect the interest of
the Lender and shall not impose any duty upon the Lender to exercise any such
power, and if the Lender shall exercise any such power, it shall be accountable
only for amounts that it actually receives as a result thereof and shall not be
responsible to the Borrower except for gross negligence and willful misconduct.
The Lender shall be under no obligation to take steps necessary to preserve
rights in any other Collateral against prior parties but may do so at its
option. As its option the Lender may discharge any taxes, liens, security
interests or other encumbrances to which any Collateral is at any time subject
and may, upon the failure of the Borrower so to do, purchase insurance on any
Collateral and pay for the repair, maintenance or preservation thereof, and the
Borrower agrees to reimburse the Lender on demand for any payments made or
expenses incurred by the Lender pursuant to the foregoing authorization, and
authorizes the Lender to charge the Borrower for the amount of such payments or
expenses. The Lender may at any time take control of any proceeds of Collateral
to which the Lender is entitled hereunder or under applicable law. In addition,
the Lender may require the Borrower to assemble any tangible personal property
constituting Collateral and make it available to the Lender at a place to be
designated by the Lender and which is reasonably convenient to the Borrower. The
Borrower hereby grants to the Lender a nonexclusive irrevocable license in
connection with the Lender's exercise of its rights hereunder, to use, apply and
affix any trademark, tradename, logo or the like in which the Borrower now or
hereafter has rights, which license may be used upon the occurrence of any of
the Events of Default. The Lender may buy at any public sale, and if the
Collateral is of a type customarily sold on a recognized market or the subject
of widely distributed standard price quotations the Lender may buy at private
sale.

SECTION 10.  MISCELLANEOUS

         10.1 RIGHT OF SET-OFF. Borrower hereby grants to Lender a lien on and a
right of set-off (to be exercised pursuant to the sentence which follows this
sentence) against all monies, deposits, securities and other property and the
proceeds thereof, now or hereafter held or received by, or in transit to Lender
or any entity under the direct or indirect control of Lender from or for
Borrower, whether for safekeeping, pledge, custody, transmission, collection or
otherwise, and all deposits (general or special), balances, sums and credits
with and all of Borrower's claims against Lender at any time existing. Lender
may at any time following and during the continuance of an Event of Default

                                       21
<PAGE>   23

apply the same or any part thereof to the Obligations or any part thereof,
whether or not the Obligations are matured at the time of such application.

         10.2 CUSTODY AND PRESERVATION OF COLLATERAL. Lender shall have no duty
beyond the safe custody thereof as to: (i) the collection or protection of any
Collateral now or hereafter securing any Note or any Obligation or any income
thereon; (ii) the preservation of rights against prior parties; or (iii) the
preservation of any rights pertaining thereto. Lender may exercise its rights
with respect to any Collateral without resorting or regard to any other
Collateral or any other sources of reimbursement for any Obligation.

         10.3 LENDER'S EXPENSES. Except as otherwise provided herein, Borrower
shall, on demand, reimburse Lender for all of Lender's reasonable expenses,
including reasonable fees and expenses of legal counsel for Lender, incurred in
connection with the preparation, administration, amendment, modification,
delivery or enforcement of this Agreement, the 1999 Term Note, the Revolving
Note and/or the Related Agreements or the collection or attempted collection of
the 1999 Term Note, the Revolving Note, including any such reasonable fees and
expenses related to any federal bankruptcy proceeding and whether incurred prior
or subsequent to any federal bankruptcy proceeding.

         10.4 ENFORCEMENT AND WAIVER BY LENDER. Lender shall have the right at
all times to enforce the provisions of this Agreement, the 1999 Term Note, the
Revolving Note and the Related Agreements in strict accordance with the terms
hereof and thereof, notwithstanding any conduct or custom on the part of Lender
in refraining from so doing at any time or times. Lender's failure or delay at
any time or times to enforce its rights or remedies under such provisions
strictly in accordance with the same shall not be construed as having created a
custom in any way or manner contrary to the specific provisions of this
Agreement or as having in any way or manner modified or waived the same. No
waiver of any provision of, or any of Lender's rights under, this Agreement, any
Note, any Related Agreement or any other document or agreement now or hereafter
relating to any of the Obligations and/or the Collateral, and no consent to any
departure by any Person therefrom, shall be effective unless such waiver or
consent is in writing and signed by an authorized officer of Lender, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which such waiver or consent is given. All of Lender's
rights and remedies under this Agreement, any Note and/or any Related Agreement
are cumulative and concurrent, and may be exercised singularly or concurrently
and are not exclusive or in derogation of any other rights or remedies provided
by Law or otherwise. Lender's exercise or partial exercise of one right or
remedy shall not be deemed a waiver or release of and shall not preclude the
further exercise of such right or remedy or any other right or remedy.

         10.5 WAIVERS AND RELEASE. To the maximum extent permitted by applicable
Laws, Borrower:

                  (A) ACKNOWLEDGES THAT EACH OF THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT, THE REVOLVING NOTE, THE 1999 TERM NOTE AND EACH OF THE RELATED
AGREEMENTS IS A COMMERCIAL TRANSACTION, AND HEREBY EXPRESSLY AND IRREVOCABLY
WAIVES TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW ITS RIGHTS TO NOTICE
AND HEARING BEFORE

                                       22
<PAGE>   24

LENDER'S OR ANY OF LENDER'S SUCCESSORS' OR ASSIGNS' EXERCISE OF THE REMEDIES OF
SELF-HELP, SET-OFF OR ANY SUMMARY PROCEDURE OR ANY OTHER PREJUDGMENT REMEDY AND,
EXCEPT WHERE REQUIRED BY THIS AGREEMENT OR ANY APPLICABLE LAW, NOTICE OF ANY
OTHER ACTION TAKEN BY LENDER; and

         10.6 APPLICABLE LAW. This Agreement, the 1999 Term Note, the Revolving
Note and each of the Related Agreements and the rights and remedies of the
parties hereto and thereto shall be governed by and construed and enforced in
accordance with the Laws and decisions of the Commonwealth of Massachusetts
without regard to conflict of laws principles.

         10.7 JURISDICTION AND SERVICE OF PROCESS. Except to the extent
prohibited by applicable Laws:

                  (A) Borrower agrees that (i) the execution of this Agreement,
each Note and each Related Agreement and the performance of Borrower's
Obligations hereunder and thereunder shall be deemed to have a Massachusetts
situs; (ii) Borrower shall be subject to the personal jurisdiction of the courts
of record of the Commonwealth of Massachusetts with respect to any suit, action
or other legal proceeding arising out of this Agreement, any Note and/or any
Related Agreement and/or the enforcement of any of the foregoing and/or any of
the transactions contemplated by any of the foregoing; and (iii) any such suit,
action or legal proceeding shall be brought by Lender and shall be brought by
Borrower in the courts of record of the Commonwealth of Massachusetts or the
courts of the United States located in the Commonwealth of Massachusetts;

                  (B) Borrower hereby irrevocably consents to the jurisdiction
of each such court in any such suit, action or other legal proceeding; and

                  (C) Borrower hereby irrevocably waives any objection which it
may have to the laying of venue of any such suit, action or other legal
proceeding in any of such courts.

         10.8 NOTICES. Any notices or consents required or permitted by this
Agreement shall be in writing (other than those which under the specific terms
of this Agreement may be given by telephone, which shall be effective when
received verbally) and shall be deemed delivered if hand-delivered or if sent by
(i) certified mail, postage prepaid, return receipt requested, (ii) telecopy, or
(iii) via a nationally-recognized overnight courier service (marked for next day
delivery), as follows, unless such address is changed by written notice to each
other party hereunder:

         Borrower:          Implant Sciences Corporation
                            107 Audubon Road
                            Wakefield, MA 01880-1246
                            Attn: Darlene Deptula-Hicks

         With a Copy to:    Foley, Hoag & Elliot LLP
                            One Post Office Square
                            Boston, MA 02109
                            Attn: David A. Broadwin, Esq.

                                       23
<PAGE>   25

         Lender:            USTrust
                            30 Court Street
                            Boston, MA  02108
                            Attn:  Frank L. Davis, III, Vice President

         With a Copy to:    Robinson & Cole LLP
                            One Boston Place
                            Boston, MA  02108
                            Attn: Matthew A. Kameron, Esq.
                            Fax:  (617) 557-5999

         10.9 BINDING EFFECT, ASSIGNMENT AND ENTIRE AGREEMENT. This Agreement,
each Note and each Related Agreement to which it is a party shall inure to the
benefit of, and shall be binding upon, each of Borrower and Lender and their
respective successors, permitted transferees and permitted assigns. Borrower
shall not assign any of its rights or delegate any of its Obligations hereunder
or under any Note or under any Related Agreement without Lender's prior written
consent, and any such assignment in contravention of this Section 10.9 shall be
null and void. This Agreement, the 1999 Term Note, the Revolving Note, the
Related Agreements and the documents executed and delivered pursuant hereto and
thereto, constitute the entire agreement between the parties with respect to the
transactions contemplated by this Agreement, and supersede all prior written or
oral understandings, agreements and commitments with respect to the subject
matter hereof and/or thereof, all of which prior understandings, agreements and
commitments are merged into this Agreement, the Revolving Note, the 1999 Term
Note and the Related Agreements. Except as specifically set forth in any Related
Agreement, no amendment, modification or termination of any provision of this
Agreement, any Note, any Related Agreement or any document or agreement now or
hereafter relating to any of the Obligations and/or the Collateral shall be
effective unless the same shall be contained in a writing signed by the parties
to this Agreement and any other Persons who are parties to such Note, Related
Agreement or other document or agreement. No notice to or demand on Borrower in
any case shall entitle Borrower to any other or further notice or demand in
similar or other circumstances.

         10.10 PAYMENT DATES. Whenever any payment to be made hereunder or under
a Note shall be stated to be due on a calendar day other than a Banking Day,
such payment may be made on the next succeeding Banking Day and such extension
of time shall in such case be included in computing interest in connection with
such payment, any Note or any Related Agreement.

         10.11 INSPECTION. Lender shall have the right upon reasonable notice to
inspect Borrower's premises and books and records.

         10.12 SEVERABILITY. If any provision of this Agreement, any Note or any
Related Agreement shall be held invalid under any applicable Law, such
invalidity shall not affect any other provision of this Agreement, such Note or
such Related Agreement, as applicable, that can be given effect without the
invalid provision, and, to this end, the provisions of each of this Agreement,
each Note and each Related Document are severable.

                                       24
<PAGE>   26

         10.13 COUNTERPARTS. This Agreement and each Related Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original, but all of which together shall constitute but one and the same
instrument, and this Agreement shall be effective when at least one counterpart
of this Agreement or such Related Agreement, as applicable, has been executed by
each party hereto or thereto.

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

WITNESS                                 IMPLANT SCIENCES CORPORATION

_________________________________       By:___________________________________
                                           Darlene Deptula-Hicks
                                           Its:  Vice President & CFO

                                        USTRUST

_________________________________       By:___________________________________
                                           Frank L. Davis, III
                                           Its:  Vice President

                                       25
<PAGE>   27

                                 SCHEDULE 1.1(b)

         TO COMMERCIAL TERM LOAN, REVOLVING LOAN AND SECURITY AGREEMENT

                               RELATED AGREEMENTS

                  1.       1997 Term Note

                  2.       1998 Equipment Note

                  3.       Security Agreement effective May 1, 1996

                  4.       Compliance Agreement

                  5.       UCC-1 Financing Statements

                                       26
<PAGE>   28

                                  SCHEDULE 5.7

         TO COMMERCIAL TERM LOAN, REVOLVING LOAN AND SECURITY AGREEMENT

                                   LITIGATION

                                      None.

                                       27
<PAGE>   29

                                  SCHEDULE 5.8

         TO COMMERCIAL TERM LOAN, REVOLVING LOAN AND SECURITY AGREEMENT

                                EXISTING DEFAULTS

                                      None.

                                       28
<PAGE>   30

                                  SCHEDULE 5.11

         TO COMMERCIAL TERM LOAN, REVOLVING LOAN AND SECURITY AGREEMENT

                                GUARANTIES, ETC.

                                      None.

                                       29
<PAGE>   31

                                  SCHEDULE 5.13

         TO COMMERCIAL TERM LOAN, REVOLVING LOAN AND SECURITY AGREEMENT

                              MATERIAL INDEBTEDNESS

$750,000 1998 Equipment Loan   (US Trust)
$750,000 Line of Credit   (US Trust)
$750,000 1999 Term Loan   (US Trust)

                                       30
<PAGE>   32

                                  SCHEDULE 5.14

         TO COMMERCIAL TERM LOAN, REVOLVING LOAN AND SECURITY AGREEMENT

                                   TAX RETURNS

                                      None

                                       31
<PAGE>   33

                          REVOLVING LINE OF CREDIT NOTE
                          -----------------------------

$750,000.00                                                December 22, 1999
                                                           Boston, Massachusetts

         For value received, Implant Sciences Corporation (the "Borrower")
promises to pay to the order of USTrust ("Lender") at the office of Lender
located at 50 Court Street, Boston, MA 02108, or such other place as the holder
hereof shall designate, ON DEMAND, SEVEN HUNDRED FIFTY THOUSAND AND 00/100
($750,000) DOLLARS or, if less, the aggregate unpaid principal amount of all
loans made by the Lender to the Borrower pursuant to this Note. The Borrower
further promises to pay the order of the Lender interest only monthly in arrears
commencing January 22, 2000 and thereafter on the 22nd day of each calendar
month at a fluctuating interest rate per annum equal to Lender's Base Rate.
"Base Rate" shall mean the rate of interest announced by Lender at its principal
office in Boston from time to time as its "Base Rate." The Base Rate is a
reference rate and does not necessarily represent the lowest or best rate being
charged to any customer. Interest shall be calculated on the basis of actual
days elapsed and a 360-day year. At any time that Borrower is in default
hereunder or under any obligation to the Lender or in the event this Note is not
paid in full ON DEMAND, interest on unpaid balances shall thereafter be payable
at a fluctuating interest rate per annum equal to four (4%) percent above the
Interest Rate in effect from time to time. Borrower shall pay to Lender a late
charge in the amount of five (5%) percent of each periodic payment due hereunder
which is more than ten (10) days in arrears to offset the additional expenses
involved in processing delinquent payments. To the extent a payment due date
does not fall on a regular business day then the due date shall be deemed to be
the first business day which follows said payment date.

         At Borrower's option, the entire principal amount shall bear interest
at a rate equal to Libor plus Two Hundred Fifty (250) Basis Points per annum
(the "LIBOR Rate"). The Libor Rate shall be set for periods of thirty (30),
sixty (60), ninety (90) or one hundred and eighty (180) days (the "Designated
Libor Rate Period"). Libor (the "London Interbank Offered Rate") means the rate
per annum at which deposits in U.S. Dollars are offered to the Lender by
first-class banks in the London Interbank Market at approximately 11:00 a.m.
(London time) no more than two (2) Business Days prior to the first day of the
applicable Designated Libor Rate Period and with a maturity comparable to such
Designated Libor Rate Period. Each Designated Libor Rate Period shall end on the
last day of the particular Designated Libor Rate Period unless the last day is
not a regular banking day in which event the Designated Libor Rate Period shall
end on the next succeeding day which is a regular banking day and any Designated
Libor Rate Period that would otherwise extend beyond the maturity date of this
Note shall end on the maturity date of this Note. The Base Rate based interest
rate shall be in effect whenever said Libor Rate based option has not been
elected by the Borrower, but only with respect to principal not earning interest
pursuant to the Fixed Rate Election as defined below. If at any time the Libor
Rate based option becomes unavailable for any reason then the Libor Rate based
option set forth above shall terminate.

         Borrower shall have the right to make full or partial prepayments of
principal at any time. Prepayments of principal on which interest is accruing at
an interest rate based on the Base Rate may be made from time to time without a
fee or premium. In the event Borrower prepays Principal earning

<PAGE>   34

interest at a Libor based rate during a Designated Libor Rate Period whether
voluntarily or as a result of acceleration or otherwise, or in the event
Borrower elects a Libor Rate based interest rate and then cancels said election,
then Borrower shall pay a prepayment fee and/or a cancellation fee as the case
may be (the "Prepayment Fee") equal to the following: the then current rate for
United States Treasury securities (bills on a discounted basis shall be
converted to a bond equivalent) with a maturity date closest to the maturity
date of the Designated Libor Rate Period as to which the prepayment is made,
shall be subtracted from the "cost of funds" component of the Libor Rate in
effect at the time of prepayment. If the result is zero or a negative number,
there shall be no Prepayment Fee. If the result is a positive number, then the
resulting percentage shall be multiplied by the amount of the principal balance
being prepaid. The resulting amount shall be divided by 360 and multiplied by
the number of days remaining in the Designated Libor Rate Period as to which
prepayment is made. Said amount shall be reduced to present value calculated by
using the number of days remaining in the Designated Libor Rate Period using the
above-referenced United States Treasury security rate and the number of days
remaining in the term so chosen as to which the prepayment is made. The
resulting amount shall be the Prepayment Fee due to Lender upon prepayment of
Libor Principal. To the extent Borrower prepays Principal during the Fixed Rate
Election period, whether voluntarily or as a result of acceleration or otherwise
then Borrower shall pay a Prepayment Fee as calculated by the Lender in its
discretion.

         If at any time the aggregate outstanding balance hereunder shall exceed
SEVEN HUNDRED FIFTY THOUSAND and 00/100 DOLLARS ($750,000), the Borrower shall
immediately repay this Note in an amount equal to such excess.

         Borrower shall maintain a zero (0) balance hereunder for thirty (30)
consecutive days during each loan year.

         Any deposits or other sums at any time credited by or due from the
holder to the Borrower and any securities or other property of the Borrower or
any such endorser at any time in the possession of the holder may at all times
be held and treated as collateral for the payment of this Note and any and all
other liabilities (direct or indirect, absolute or contingent, sole, joint or
several, secured or unsecured, due or to become due, now existing or hereafter
arising) of the Borrower to the holder. Regardless of the adequacy of
collateral, the holder may apply or set off such deposits or other sums against
such liabilities upon an event of default continuing beyond any applicable
notice and cure provisions in the case of the Borrower, but only with respect to
matured liabilities in the case of endorser.

         The Borrower hereby waives the right to a jury trial, presentment,
demand, notice, protest and all other demands and notices in connection with the
delivery, acceptance, performance, default or enforcement hereof and consents
that no indulgence, and no substitution, release or surrender of collateral, and
no discharge or release of any other party primarily or secondarily liable
hereon, shall discharge or otherwise affect the liability of the Borrower or any
such endorser. No delay or omission on the part of the holder in exercising any
right hereunder shall operate as a waiver of such right or of any other right
hereunder, and a waiver of any such right on any one occasion shall not be
construed as a bar to or waiver of any such right on any future occasion.

                                       2
<PAGE>   35

         This Note is secured by any collateral at any time granted to Lender to
secure any obligations of any maker hereof.

         The Lender may at any time pledge all or any portion of its rights
under the loan documents entered into in connection herewith and any portion of
this Note to any of the twelve (12) Federal Reserve Banks organized under
Section 4 of the Federal Reserve Act, 12 U.S.C. Section 341.

         Upon receipt of an affidavit, including an indemnification reasonably
satisfactory to Maker, of an officer of Lender as to the loss, theft,
destruction or mutilation of this Note or any other security document which is
not of public record, and, in the case of any such loss, theft, destruction or
mutilation, upon surrender and cancellation of such Note or other security
documents, Borrower will issue, in lieu thereof, a replacement Note or other
security document in the same principal amount hereof and otherwise of like
tenor.

         The Borrower agrees to pay on demand all reasonable costs and expenses
(including legal costs and reasonable attorney's fees) incurred or paid by the
holder in enforcing this note on default.

         The Note incorporates the terms and conditions set forth in the Loan
Agreement, which terms and conditions are incorporated by reference herein,
including without limitation, Borrower's warranties, covenants and negative
covenants contained therein.

         This Note shall take effect as a sealed instrument and shall be
governed by the laws of the Commonwealth of Massachusetts.

                                        BORROWER:

                                        IMPLANT SCIENCES CORPORATION

_____________________________           By:___________________________
                                           Darlene Deptula-Hicks
                                           Its:  Vice President and CFO

                                       3
<PAGE>   36

                                   SCHEDULE A

To secure Borrower's timely payment and performance of all of the Obligations,
Borrower hereby mortgages, pledges, transfers, conveys and delivers to Lender,
and grants to Lender an irrevocable, unconditional and continuing first and
prior security interest in and lien upon the following property of Borrower (the
"Collateral"):

                  (A) All accounts and accounts receivable related to or arising
from the rendition of services by Borrower in the ordinary course of its
business or arising in any other manner and all other accounts, bank accounts,
contracts, contract rights, notes, documents, chattel paper, instruments,
acceptances, drafts or other forms of obligations and receivables (collectively,
the "Accounts"), whether or not the same are listed on any schedules,
assignments or reports furnished to Lender from time to time, and whether such
Accounts are now existing or are created at any time hereafter, together with
all goods, inventory and merchandise returned by or reclaimed by or repossessed
from customers wherever such goods, inventory and merchandise are located, and
all proceeds thereto including without limitation, proceeds of insurance thereon
and all guaranties, securities, and liens which Borrower may hold for the
payment of any such Accounts, including without limitation, all rights of
stoppage in transit, replevin and reclamation and all other rights and remedies
of an unpaid vendor or lienor, and any liens held by Borrower as a mechanic,
contractor, subcontractor, processor, materialman, machinist, manufacturer,
artisan, or otherwise;

                  (B) All documents, instruments, securities, documents of
title, policies and certificates of insurance, guaranties, securities, chattel
paper, deposits, tax refunds, proceeds of insurance, proceeds of an eminent
domain or condemnation award, cash, liens or other property (other than real
property), which are now or may hereinafter be in the possession of the Borrower
or as to which the Borrower may now or hereafter control possession by documents
of title or otherwise, including, but not limited to, all property allocable to
unshipped orders relating to Accounts and Inventory (as herein defined);

                  (C) All books, records, customer lists, supplier lists,
ledgers, evidences of shipping, invoices, purchase orders, sales orders and all
other evidences of Borrower's business records, including all cabinets, drawers,
etc. that may hold the same; computer records, lists, software, programs,
wherever located, all whether now existing or hereafter arising or acquired;

                  (D) All Borrower's inventory, whether now owned or hereafter
acquired, including without limitation: (i) all goods manufactured or acquired
for sale or lease, and any piece goods, raw materials, work in process and
finished merchandise, findings or component materials, and all supplies, goods,
incidentals, office supplies, packaging materials, and any and all items
including machinery and equipment used or consumed in the operation of the
business of Borrower or which contribute to the finished product or to the sale,
promotion and shipment thereof, in which Borrower now or at any time hereafter
may have an interest, whether or not such inventory is listed in this agreement
on any reports furnished to Lender from time to time; (ii) all inventory whether
or not the same is in transit or in the constructive, actual or exclusive
occupancy or possession of Borrower or is held by Borrower or by others for the
Accounts, including without limitation, all goods covered by purchase orders and

<PAGE>   37

contracts with suppliers and all goods billed and held by suppliers; (iii) all
inventory which may be located on premises of Borrower or of any carrier,
forwarding agents, truckers, warehousemen, vendors, selling agents or third
parties; (iv) all general intangibles relating to or arising out of inventory;
and (v) all proceeds and products of the foregoing resulting from the sale,
lease or other disposition of inventory, including cash, accounts receivable,
other non-cash proceeds and trade-ins (collectively, "Inventory");

                  (E) All general intangibles, including without limitation, tax
refunds, customer lists, proceeds of insurance, unearned insurance premium
refunds, eminent domain awards, condemnation proceeds, and copyrights,
tradenames, trademarks, applications therefor, and licenses to any copyright,
trademark, or tradename that Borrower now owns, has the right to use or may
hereafter own or acquire the right to use. Notwithstanding anything to the
contrary herein, any and all patents currently owned or hereafter acquired by
Borrower shall be specifically excluded from general intangibles.

                  (F) All equipment, machinery, appliances, and furniture and
fixtures, now existing or hereafter arising, wherever located, and all
contracts, contract rights and chattel paper arising out of any lease of any of
the foregoing or otherwise (specifically excluding purchase money security
interests in leased equipment and machinery);

                  (G) All other collateral in which Borrower may hereafter grant
to Lender a security interest; and

                  (H) All renewals, substitutions, replacements, additions,
accessions, proceeds, and products of any and all of the foregoing.

                  (I) Specifically excluded from the Collateral are any and all
Government Contracts and Grants entered into by Borrower.

<PAGE>   38

                              COMPLIANCE AGREEMENT
                              --------------------

                   LENDER:       USTrust

              LOAN NUMBER:

                 BORROWER:       IMPLANT SCIENCES CORPORATION

                  ADDRESS:       107 Audubon Road
                                 Wakefield, Massachusetts 01880

             CLOSING DATE:       December 22, 1999

     ORIGINAL LOAN AMOUNT:       $750,000.00 Revolving Line of Credit
                                 $750,000.00 1999 Term Loan
                                 $750,000.00 Term Loan dated January 16, 1998

         I/We the undersigned agree to sign, execute and/or resign and
re-execute any and all closing or ancillary documents to correct manifest error
in such documents, or as the Lender reasonably deems necessary.

         Witness my/our hand and seal as of this 22nd day of December, 1999.

                                        BORROWER:

                                        IMPLANT SCIENCES CORPORATION

                                        ------------------------------------
                                        Darlene Deptula-Hicks
                                        Its:  Vice President and CFO<PAGE>   1
                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT is entered into as of October 11, 1999, (the
"Effective Date") by and between JEFFREY R. RODEK (the "Employee") and HYPERION
SOLUTIONS CORPORATION, a Delaware corporation (the "Company").

                  1.       DUTIES AND SCOPE OF EMPLOYMENT.

                           (a)  POSITION. For the term of his employment under
this Agreement ("Employment"), the Company agrees to employ the Employee in the
position of Chief Executive Officer, reporting to the Board of Directors. In
addition, the Company agrees to elect the Employee as Chairman of the Board of
Directors promptly following his acceptance of the terms of this Agreement. It
is expected that the Employee's primary office will be in Sunnyvale, California,
at the Company's headquarters.

                           (b)  OBLIGATIONS TO THE COMPANY. During the term of
his Employment, the Employee shall devote his full business efforts and time to
the Company. During the term of his Employment, without the prior written
approval of the Company (which shall not be unreasonably withheld), the Employee
shall not render services in any capacity to any other person or entity and
shall not act as a sole proprietor, partner or managing member of any other
person or entity or as a shareholder owning more than one percent of the stock
of any other corporation. The foregoing, however, shall not preclude the
Employee from engaging in reasonable community, school or charitable activities.
The Employee shall comply with the Company's policies and rules, as they may be
in effect from time to time during the term of his Employment.

                           (c)  NO CONFLICTING OBLIGATIONS. The Employee
represents and warrants to the Company that he is under no obligations or
commitments, whether contractual or otherwise, that are inconsistent with his
obligations under this Agreement. The Employee represents and warrants that he
will not use or disclose, in connection with his employment by the Company, any
trade secrets or other proprietary information or intellectual property in which
he or any other person has any right, title or interest and that his employment
by the Company as contemplated by this Agreement will not infringe or violate
the rights of any other person. The Employee represents and warrants to the
Company that he has returned all property and confidential information belonging
to any prior employer.

                  2.       COMPENSATION.

                           (a)  SALARY. The Company shall pay the Employee as
compensation for his services a base salary at a gross annual rate of not less
than $400,000. Such salary shall be payable in accordance with the Company's
standard payroll procedures. (The annual compensation specified in this
Subsection (a), together with any increases in such compensation that the
Company may grant from time to time, is referred to in this Agreement as "Base
Compensation.").

                           (b)  INCENTIVE BONUSES. Commencing with the Company's
fiscal year ending June 30, 2002, the Employee shall be eligible to be
considered for an annual incentive

<PAGE>   2

bonus with a target amount equal to 50% of the Employee's Base Compensation with
the potential for a greater amount at the discretion of the Company's Board of
Directors (the "Board") or its Compensation Committee in the event of
exceptional performance. Such bonus (if any) shall be awarded based on objective
or subjective criteria established in advance by the Board or its Compensation
Committee. The determinations of the Board or such Committee with respect to
such bonus shall be final and binding.

                           (c)  RESTRICTED STOCK. The Company hereby grants the
Employee 100,000 shares of the Company's Common Stock, subject to certain
restrictions (the "Restricted Stock"), at a purchase price equal to its par
value of $0.001 per share, subject to the following additional terms:

                                (i)  The aggregate purchase price has been paid
         by, or on behalf of, the Employee.

                                (ii)  The Restricted Stock is subject to the
         terms of an agreement (the "Restricted Stock Agreement") that shall be
         presented to the Employee by the officers of the Company within ten
         (10) days of the Effective Date containing terms substantially similar
         to those of this Agreement and, where applicable, of the Company's 1995
         Stock Option/Stock Issuance Plan as amended and restated as of August
         21, 1998 (the "Option/Issuance Plan"), a copy of which has been
         provided to the Employee.

                                (iii) The Employee's interest will become fully
         vested and all restrictions will lapse on 6,250 shares on the day
         corresponding to the Effective Date of each successive third month
         following the Effective Date, so that the Employee's interest will
         become fully vested in all of the shares of Restricted Stock on the
         anniversary of the Effective Date in 2003.

                                (iv)  As of the Effective Date, the Employee has
         full stockholder rights with respect to the shares of Restricted Stock
         including the right to vote the shares and to receive dividends,
         whether or not his interest in such shares is vested, provided however
         that should the Employee cease to remain in service to the Company
         while holding one or more unvested shares of Restricted Stock, such
         unvested shares will be immediately surrendered to the Corporation for
         cancellation and the Employee will have no further stockholder rights
         with respect to such unvested shares.

                                (v)   In the event of a Change in Control or
         Corporate Transaction, as those terms are defined in the
         Option/Issuance Plan, unvested shares of Restricted Stock shall
         accelerate to the same extent that options are accelerated under the
         Option/Issuance Plan. Additionally, the terms of the loan to the
         Employee and of the Note will not be affected by such Change in Control
         or Corporate Transaction, so that the Company or the successor
         corporation, whichever is applicable, will continue to lend to the
         Employee such funds as are described herein upon acceleration or upon
         vesting of Employee's interest in the securities to the extent such
         acceleration occurs.

                                       2
<PAGE>   3

                           (d)  LOAN. If the Employee elects treatment under
Section 83(b) of the Internal Revenue Code for income he may be deemed to have
received in connection with his purchase of all of the shares of Restricted
Stock, the Company will loan the Employee One Million Dollars ($1,000,000.00) in
exchange for a full-recourse promissory note from the Employee (the "Note"),
subject to the following terms and conditions:

                                (i) The Company will fund such loan to the
         Employee in the principal amount no later than fifteen (15) business
         days following the Employee's purchase of the Restricted Stock.

                                (ii) The Note will accrue interest at the
         applicable federal rate for mid-term loans of 6.02%, compounded
         annually, and shall have a term of six (6) years. Payment on the
         outstanding principal and all accrued interest will be due on the
         maturity date. The Note will be secured by the Restricted Stock and/or
         such other collateral (if any) as the officer executing the security
         agreement deems appropriate. In the event that the Employee terminates
         his service with the Company before the term of the Note has lapsed,
         the Note will become due and payable in full within thirty (30) days of
         such termination.

                           (e)  STOCK OPTIONS. The Company hereby agrees grant
to the Employee, as of the Effective Date, options to purchase 1,100,000 shares
of the Corporation's Common Stock, 500,000 of which (the "Plan Options") are to
be granted pursuant to the Option/Stock Issuance Plan and 600,000 of which (the
"Non-Plan Options") are to be granted under an option agreement between the
Corporation and the Employee, which agreement is attached as EXHIBIT A (the
"Option Agreement"). All of the granted options shall be subject to the
following terms:

                                (i) The Plan Options shall be considered
         Incentive Stock Options to the maximum extent permitted in each
         calendar year under Section 422(d) of the Internal Revenue Code of
         1986, as amended. All other of the options granted shall be
         non-statutory stock options.

                                (ii) All options shall have a term of ten (10)
         years from the Effective Date, subject to earlier termination following
         the optionee's cessation of service with the Company. The exercise
         price of the options granted shall be equal to the closing price per
         share on the Effective Date, as such price is reported by the Nasdaq
         Stock Market, which price is deemed for purposes of the Option/Issuance
         Plan and the Option Agreement to be the fair market value per share of
         Common Stock as of the Effective Date.

                                (iii) One-quarter of the shares covered by such
         options shall become exercisable on the anniversary of the Effective
         Date and 1/48 of the shares covered by such options shall become
         exercisable upon the day corresponding to the Effective Date of each of
         the thirty-six months following the first anniversary of the Effective
         Date, so that the options will be fully exercisable on the fourth
         anniversary of the Effective Date in 2003.

                                       3

<PAGE>   4

                                (iv) Should the Employee for any reason (other
         than for Cause, as defined in Section 6 of this Agreement) cease to
         remain in Service (as defined in the applicable option agreement) to
         the Corporation while such options are outstanding, then the Employee
         shall have a period of time as specified in the option agreements for
         the Plan Options and the Non-Plan Options during which to exercise such
         options, but in no event shall such options be exercisable at any time
         after their expiration date.

                                (v)  In each fiscal year of the Company that the
         Employee chooses to exercise such options, he shall exercise those
         options that are exercisable in the following order:

                                     (A) First, the Employee shall exercise
                  exercisable Non-Plan Options until the aggregate spread
                  between the exercise price and the fair market value of option
                  shares on the date of exercise is equal to any excess of One
                  Million Dollars ($1,000,000.00) over the amount of
                  compensation other than from exercise of Plan Options that the
                  Employee reasonably expects to receive in such fiscal year.

                                     (B) Second, the Employee shall exercise
                  exercisable Plan Options.

                                     (C) The Employee shall not exercise
                  additional Non-Plan Options in such fiscal year until he has
                  exercised all of his then exercisable Plan Options.

                                (vi) The remaining terms and conditions of such
         Plan Options shall be substantially as set forth in the Company's
         standard form option agreement and the Option/Issuance Plan and the
         remaining terms and conditions of the Non-Plan options are as set forth
         in the Option Agreement in EXHIBIT A.

                           3.   VACATION AND EMPLOYEE BENEFITS. During the term
of his Employment, the Employee shall be eligible for four weeks of paid
vacation per year of Employment. During the term of his Employment, the Employee
shall be eligible to participate in any employee benefit plans maintained by the
Company for senior executives, subject in each case to the generally applicable
terms and conditions of the plan in question and to the determinations of any
person or committee administering such plan. In addition, the Company will
reimburse Employee for the costs of membership in a health club of his choice.

                           4.   BUSINESS EXPENSES. During the term of his
Employment, the Employee shall be authorized to incur necessary and reasonable
travel (including first class air travel), entertainment and other business
expenses in connection with his duties hereunder. The Company shall reimburse
the Employee for such expenses upon presentation of an itemized account and
appropriate supporting documentation, all in accordance with the Company's
generally applicable policies. For a period of two years from the date of this
Agreement, the Company will also reimburse Employee for all travel between his
family residence in Southern California and Hyperion locations in conjunction
with Company business and provide Employee

                                       4
<PAGE>   5

with temporary living arrangements near such office of the Company as shall be
agreed upon by the Board and the Employee. Should Employee decide within the
first two years of his Employment to relocate his family to the vicinity of such
office of the Company as shall be agreed upon by the Board and the Employee, the
Company will reimburse Employee for all reasonable and customary expenses
associated with the relocation. This includes, but is not limited to, closing
costs associated with the sale of and purchase of a home, mortgage loan closing
costs and moving costs.

                  5.       TERM OF EMPLOYMENT.

                           (a)  BASIC RULE. The Company agrees to continue the
Employee's  Employment,  and the Employee agrees to remain in Employment with
the Company, from the Effective Date until the earlier of:

                                (i)  The close of the  applicable  Initial Term
         or Renewal  Period, as determined under Subsection (b) below; or

                                (ii) The date when the Employee's Employment
         terminates pursuant to Subsection (c) below.

                           (b)  INITIAL TERM AND RENEWAL PERIODS. The initial
term of this  Agreement  shall end on October 11, 2001 (the "Initial Term").
Thereafter this Agreement shall automatically be renewed for successive 12-month
periods (the "Renewal Periods"), unless either party has given the other party
written notice of non-renewal not less than 90 days prior to the close of the
Initial Term or Renewal Period then in effect.

                           (c)  EARLY TERMINATION. The Employee may terminate
his Employment at any time other than under Section 5(b) and for any reason (or
no reason) by giving the Company 30 days advance notice in writing. The Company
may terminate the Employee's Employment at any time and for any reason (or no
reason), and with or without Cause, by giving the Employee 30 days advance
notice in writing or, at the Company's option, pay in lieu of some or all of the
notice period. The Company may also, subject to applicable laws, terminate the
Employee's active Employment due to Disability by giving the Employee notice in
writing. For all purposes under this Agreement, "Disability" shall mean a
"disability" as defined by the Americans with Disabilities Act that renders the
Employee unable to perform one or more of the essential functions of his job and
which the Company is unable to accommodate reasonably without undue hardship.
The Employee's Employment shall terminate automatically in the event of his
death.

                           (d)  EMPLOYMENT AT WILL. At all times, the Employee's
Employment with the Company shall be "at will." Any contrary representations
which may have been made to the Employee shall be superseded by this Agreement.
This Agreement shall constitute the full and complete agreement between the
Employee and the Company on the "at will" nature of the Employee's Employment,
which may only be changed in an express written agreement signed by the Employee
and a duly authorized officer of the Company.

                           (e)  RIGHTS AND OBLIGATIONS UPON TERMINATION. Except
as expressly

                                       5
<PAGE>   6

provided in Section 6, upon the termination of the Employee's Employment
pursuant to this Section 5, the Employee shall only be entitled to the
compensation, benefits and reimbursements described in Sections 2, 3 and 4 for
the period preceding the effective date of the termination. No incentive bonus
under Section 2(b) shall be payable for the year in which the Employee's
Employment terminates, unless the Employee is terminated without Cause, in which
the case the Employee shall be entitled to the payment of a prorated bonus for
such year. The payments under this Agreement shall fully discharge all
compensatory obligations of the Company to the Employee. The termination of this
Agreement shall not limit or otherwise affect the Employee's obligations under
Section 7. The Employee will also be required to repay the Note pursuant to
Section 2(d)(ii).

                           (f)  COVENANT. Employee hereby agrees to resign
immediately  upon the request of the Company from all offices and directorships
he may hold with the Company or any of its affiliates upon the termination of
his Employment for any reason.

                  6.       TERMINATION BENEFITS.

                           (a)  GENERAL MUTUAL RELEASE. Within seven (7) days of
the Employee's termination date, the Employee shall execute a general release
(in a form prescribed by the Company) of all known and unknown claims that he
may then have against the Company or persons affiliated with the Company and the
Company also agrees to provide the Employee with the same general release and
agreement for the benefit of the Employee.

                           (b)  SEVERANCE PAY. Any other provision of this
Agreement notwithstanding, this Section (b) and Section (c) below shall not
apply unless (x) the Employee has executed the general release pursuant to
subsection (a) above, and (y) the Employee has agreed not to (and does not)
prosecute any legal action or other proceeding based upon any of such claims. If
such conditions are met, the Company shall pay the Employee his Base
Compensation for a thirty (30)-month period following the effective date of the
termination of his Employment as a full-time employee (the "Continuation
Period"), provided the Employee does not breach any provision of this Agreement
and:

                                (i) The Company terminates the Employee's
         Employment as a full-time employee under Section 5(b) or Section 5(c)
         for any reason other than Cause, Disability or death; or

                                (ii) The Employee resigns his Employment as
         a full-time employee for Good Reason within 12 months following a
         Change in Control, as defined below.

The Base Compensation under this Subsection (b) shall be paid at the rate in
effect at the time of the termination of Employment and in accordance with the
Company's standard payroll procedures.

The Company reserves the right to pay such severance pay to the Employee in any
combination of the following: x) cash; y) by accelerating vesting in some or all
of those shares of Restricted Stock that are unvested as of the termination
date; and z) by accelerating vesting in some or all of

                                       6
<PAGE>   7

such stock options granted to the Employee that remain unvested as of the
termination date.

If the Company so chooses to accelerate vesting of either or both the Restricted
Stock and such stock options, the value of such Restricted Stock or stock option
shares will be calculated using the average of the closing trade price of the
Company's Common Stock for the twenty (20) trading days preceding the Employee's
termination date (the "Average Price"). The value of such severance pay which
the Company chooses to pay in the form of such accelerated Restricted Stock, if
any, will be equal to the number of shares so accelerated multiplied by the
excess of the Average Price over $0.001. The value of such severance pay which
the Company chooses to pay in the form of such accelerated stock option shares,
if any, will be equal to the number of shares so accelerated multiplied by the
excess of the Average Price over the exercise price of the stock option shares.

                           (c)  EMPLOYEE BENEFITS. If Subsection (b) above
applies, the Company shall continue the coverage of the Employee and his
dependents (if applicable) under the employee benefit plans described in Section
3 during the Continuation Period. To the extent that such plans or the insurance
contracts or provider agreements associated with such plans do not permit the
extension of the Employee's coverage following the termination of his active
employment, the Company shall pay the Employee cash in an amount equal to the
cost to the Company of the coverage that cannot be provided. The cash payments
shall be made in accordance with Subsection (b) above.

                           (d)  COBRA. If Subsection (b) above applies, and if
the Employee elects to continue his health insurance coverage under the
Consolidated Omnibus Budget Reconciliation Act ("COBRA") following the
termination of his Employment, then the date of the "qualifying event" for
purposes of COBRA shall be the Employee's last day of active employment.

                           (e)  DEFINITION OF "CAUSE." For all purposes under
this Agreement, "Cause" shall mean:

                                (i) The Employee's failure to perform in a
         satisfactory  fashion one or more reasonable and lawful duties assigned
         to the Employee by the Company under this Agreement, if such failure
         continues for 15 days or more after the Company has given the Employee
         written notice describing such failure and advising him of the
         consequences of such failure under this Agreement, provided that such
         notice shall be required only with respect to the first failure;

                                (ii) The Employee's conviction of, or a plea
         of "guilty" or "no contest" to, a felony under the laws of the United
         States or any state thereof;

                                (iii) The Employee's failure or refusal to
         carry out the reasonable directives of the Company, if such failure
         continues for three days or more after the Company has given the
         Employee written notice describing such failure and advising him of the
         consequences of such failure under this Agreement, provided that such
         notice shall be required only with respect to the

                                       7
<PAGE>   8

         first failure;

                                (iv) Any breach of this Agreement, the
         Proprietary Information and Inventions Agreement between the Employee
         and the Company, or any other agreement between the Employee and the
         Company;

                                (v)  Threats or acts of violence directed at any
         present, former or prospective employee, independent contractor,
         vendor, customer or business partner of the Company (or any of the
         Company's affiliates); or

                                (vi) The commission of any act of fraud,
         embezzlement or dishonesty by Employee, any unauthorized use or
         disclosure by Employee of confidential information or trade secrets of
         the Company (or any of the Company's affiliates), or any other
         intentional misconduct by Employee affecting the business or affairs of
         the Company (or any of the Company's affiliates) in a material manner.

                           (f)  DEFINITION OF "CHANGE IN CONTROL." For all
purposes under this Agreement except where indicated in Section 2(c), "Change
in Control" shall mean:

                                (i) The consummation of a merger or
         consolidation of the Company with or into another entity or any other
         corporate reorganization, if persons who were not stockholders of the
         Company immediately prior to such transaction own immediately after
         such transaction 50% or more of the voting power of the outstanding
         securities of each of (A) the continuing or surviving entity or (B) any
         direct or indirect parent corporation of such continuing or surviving
         entity;

                                (ii) The sale, transfer or other disposition of
         all or substantially all of the Company's assets, if persons who were
         not stockholders of the Company immediately prior to such transaction
         own immediately after such transaction 50% or more of the voting power
         of the outstanding securities of each of (A) the continuing or
         surviving entity or (B) any direct or indirect parent corporation of
         such continuing or surviving entity;

                                (iii) A change in the composition of the Board,
         as a result of which fewer than a majority of the incumbent directors
         are directors who either (A) had been directors of the Company on the
         date 24 months prior to the date of the event that may constitute a
         Change in Control (the "original directors") or (B) were elected, or
         nominated for election, to the Board with the affirmative votes of at
         least a majority of the aggregate of the original directors who were
         still in office at the time of the election or nomination and the
         directors whose election or nomination was previously so approved;

                                (iv) Any transaction as a result of which any
         person is the "beneficial owner" (as defined in Rule 13d-3 under the
         Securities Exchange Act of 1934, as amended (the "Exchange Act")),
         directly or indirectly, of

                                       8
<PAGE>   9

         securities of the Company representing more than 50% of the total
         voting power represented by the Company's then outstanding voting
         securities. For purposes of this Paragraph (iv), the term "person"
         shall have the same meaning as when used in sections 13(d) and 14(d) of
         the Exchange Act but shall exclude (A) a trustee or other fiduciary
         holding securities under an employee benefit plan of the Company or of
         a parent or subsidiary of the Company and (B) a corporation owned
         directly or indirectly by the stockholders of the Company in
         substantially the same proportions as their ownership of the common
         stock of the Company; or

                                (v) Any change in control required to be
         reported by Item 1 of Form 8-K of the Securities and Exchange
         Commission or by Item 6(e) of Schedule 14A set forth in Rule 14a-101
         under the Exchange Act (or by any successor of either).

A transaction shall not constitute a Change in Control if its sole purpose is to
change the state of the Company's incorporation or to create a holding company
that will be owned in substantially the same proportions by the persons who held
the Company's securities immediately before such transaction.

                           (g)  DEFINITION OF "GOOD REASON." For all purposes
under this Agreement, "Good Reason" shall mean:

                                (i) A significant diminution in the nature or
         scope of the Employee's authority, duties or responsibilities in effect
         immediately prior to the Change in Control;

                                (ii) Any reduction in the rate of the Employee's
         Base Compensation in effect immediately prior to the Change in Control
         or a reduction of 25% or more in the value of the Employee's aggregate
         compensation and benefits in effect immediately prior to the Change in
         Control;

                                (iii) The relocation of the Employee's principal
         place of employment to a site more than 25 miles removed from his
         principal place of employment immediately prior to the Change in
         Control; or

                                (iv) An increase of 25% or more in the
         average amount of time per month that the Employee is required to be
         away from his principal place of employment, relative to the average
         amount of time per month that the Employee was required to be away from
         his principal place of employment immediately prior to the Change in
         Control.

                  7.       EMPLOYEE'S COVENANTS.

                           (a)  NON-SOLICITATION. During the period commencing
on the date of this Agreement and continuing until the second anniversary of the
date when the Employee's Employment terminated for any reason, the Employee
shall not directly or indirectly, personally or through others, solicit or
attempt to solicit (on the Employee's own behalf or on behalf of any

                                       9

<PAGE>   10

other person or entity) either (i) the employment of any employee of the Company
or any of the Company's affiliates or (ii) the business of any customer of the
Company that is of the nature of the business being provided by the Company, or
of any of the Company's affiliates, with whom the Employee had contact during
his Employment. During the portion of such period following termination of the
Employee, the Employee shall not encourage or induce, or take any action that
has the effect of encouraging or inducing, any employee of the Company or any of
the Company's affiliates to terminate his or her employment.

                           (b)  NON-DISCLOSURE. The Employee has entered into a
Proprietary  Information  and Inventions Agreement with the Company, which is
incorporated herein by reference.

                           (c)  NON-COMPETITION. If Section  6(b) applies, the
Employee during the Continuation Period shall not, directly or indirectly (other
than on behalf of the Company or with the Company's prior written consent),
engage in a Competitive Business Activity in any of the locations listed in
Schedule A attached hereto. The term "Competitive Business Activity" shall mean:

                                (i) Engaging in, or managing or directing
         persons  engaged in, any business in which the Company or any of the
         Company's affiliates is engaged at the time of the termination of the
         Employee's Employment, whether independently or as an employee, agent,
         consultant, advisor, independent contractor, proprietor, partner,
         officer, director or otherwise;

                                (ii) Acquiring or having an ownership interest
         in any entity that derives more than 15% of its gross revenues from any
         business in which the Company or any of the Company's affiliates is
         engaged at the time of the termination of the Employee's Employment,
         except for ownership of 1% or less of any entity whose securities are
         freely tradable on an established market; or

                                (iii) Participating in the financing, operation,
         management or control of any firm, partnership, corporation, entity or
         business described in Paragraph (ii) above.

                           (d)  NON-DISPARAGEMENT. During the period commencing
on the date of this Agreement and continuing until the second anniversary of the
date when the Employee's Employment terminated for any reason, (i) the Employee
shall not directly or indirectly, personally or through others, disparage the
Company, its affiliates, its management, officers, employees or members of its
Board of Directors and (ii) the Company shall not, and it shall take reasonable
steps to cause its management and members of its Board of Directors not to,
directly or indirectly, personally or through others, disparage the Employee,
except that such disclosures by the Company that are made (a) to fulfill its
obligations under federal securities statutes and rules; (b) in response to a
valid order of a court or other governmental body of the United States or any
political subdivision thereof, or (c) pursuant to other of the Company's or such
individuals' duties required by law, will not violate the Company's obligation
under this subsection (d).

                                       10
<PAGE>   11

                           (e)  INJUNCTIVE RELIEF. The Employee acknowledges and
agrees that his failure to perform any of his covenants in this Section 7 would
cause irreparable injury to the Company and cause damages to the Company that
would be difficult or impossible to ascertain or quantify. Accordingly, without
limiting any other remedies that may be available with respect to any breach of
this Agreement, the Employee consents to the entry of an injunction to restrain
any breach of this Section 7, without any requirement to post a bond.

                           (f)  SURVIVAL. The covenants in this Section 7 shall
survive any termination or expiration of this Agreement and the termination of
the Employee's Employment with the Company for any reason.

                  8.       SUCCESSORS.

                           (a)  COMPANY'S SUCCESSORS. This Agreement shall be
binding upon any successor (whether direct or indirect and whether by
purchase, lease, merger, consolidation, liquidation or otherwise) to all or
substantially all of the Company's business and/or assets. For all purposes
under this Agreement, the term "Company" shall include any successor to the
Company's business and/or assets which becomes bound by this Agreement.

                           (b)  EMPLOYEE'S SUCCESSORS. This Agreement and all
rights of the Employee hereunder shall inure to the benefit of, and be
enforceable by, the Employee's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

                  9.       MISCELLANEOUS PROVISIONS.

                           (a)  NOTICE. Notices and all other communications
contemplated by this Agreement shall be in writing and shall be deemed to have
been duly given when (i) personally delivered, (ii) delivered to the U.S. Postal
Service for delivery by registered or certified mail or (iii) delivered to a
comparable private service offering guaranteed deliveries in the ordinary course
of its business. Notice under clauses (ii) and (iii) shall be valid only if
delivery charges have been prepaid and a return receipt will be furnished. In
the case of the Employee, notice under clauses (ii) and (iii) shall be addressed
to him at the home address which he most recently communicated to the Company in
writing. In the case of the Company, notice under clauses (ii) and (iii) shall
be addressed to its corporate headquarters and directed to the attention of its
Secretary.

                           (b)  MODIFICATIONS AND WAIVERS. No provision of this
Agreement shall be modified, waived or discharged unless the modification,
waiver or discharge is agreed to in writing and signed by the Employee and by an
authorized officer of the Company (other than the Employee). No waiver by either
party of any breach of, or of compliance with, any condition or provision of
this Agreement by the other party shall be considered a waiver of any other
condition or provision or of the same condition or provision at another time.

                           (c)  WHOLE AGREEMENT. This Agreement supersedes any
prior employment agreement between the Employee and the Company. No other
agreements, representations or understandings (whether oral or written and
whether express or implied)

                                       11
<PAGE>   12

which are not expressly set forth in this Agreement have been made or entered
into by either party with respect to the subject matter hereof. This Agreement
and the Proprietary Information and Inventions Agreement between the Employee
and the Company contain the entire understanding of the parties with respect to
the subject matter hereof.

                           (d)  WITHHOLDING TAXES. All payments made under this
Agreement shall be subject to reduction to reflect taxes or other charges
required to be withheld by law.

                           (e)  CHOICE OF LAW. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of California (except their provisions governing the choice of law).

                           (f)  SEVERABILITY. The invalidity or unenforceability
of any provision or provisions of this Agreement shall not affect the validity
or enforceability of any other provision hereof, which shall remain in full
force and effect. If any provision hereof is unenforceable in any jurisdiction,
it shall be adjusted rather than voided so that it may be enforced to the
maximum extent possible.

                           (g)  ARBITRATION. Subject to Section 7(e), any
controversy or claim arising out of or relating to this Agreement or the breach
thereof, or the Employee's Employment or the termination thereof, shall be
settled in Santa Clara County, California, by arbitration in accordance with the
National Rules for the Resolution of Employment Disputes of the American
Arbitration Association. The decision of the arbitrator shall be final and
binding on the parties, and judgment on the award rendered by the arbitrator may
be entered in any court having jurisdiction thereof. The parties hereby agree
that the arbitrator shall be empowered to enter an equitable decree mandating
specific enforcement of the terms of this Agreement. The Company and the
Employee shall share equally all fees and expenses of the arbitrator; provided,
however, that the Company or the Employee, as the case may be, shall bear all
fees and expenses of the arbitrator and all of the legal fees and out-of-pocket
expenses of the other party if the arbitrator determines that the claim or
position of the Company or the Employee, as the case may be, was without
reasonable foundation. The Employee hereby consents to personal jurisdiction of
the state and federal courts located in the State of California for any action
or proceeding arising from or relating to this Agreement or relating to any
arbitration in which the parties are participants.

                           (h)  NO ASSIGNMENT. This Agreement and all rights and
obligations of the Employee hereunder are personal to the Employee and may not
be transferred or assigned by the Employee at any time. The Company may assign
its rights under this Agreement to any entity that assumes the Company's
obligations hereunder in connection with any sale or transfer of all or a
substantial portion of the Company's assets to such entity.

                           (i) COUNTERPARTS. This Agreement may be executed in
two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

                  IN WITNESS WHEREOF, each of the parties has executed this
Agreement, in the

                                       12
<PAGE>   13

case of the Company by its duly authorized officer, as of the day and year first
above written.

                                            HYPERION SOLUTIONS CORPORATION

                                            By: /s/ Stephen Imbler
                                               ---------------------------------

                                            Title:
                                                  ------------------------------

                                            /s/ Jeffrey R. Rodek
                                            ------------------------------------
                                            Jeffrey R. Rodek

                                       13

<PAGE>   14

    EXHIBIT A TO OCTOBER 11, 1999 EMPLOYMENT AGREEMENT WITH JEFFREY R. RODEK

                     OPTION AGREEMENT WITH JEFFREY R. RODEK

                                       14

<PAGE>   15
                         HYPERION SOLUTIONS CORPORATION
                             STOCK OPTION AGREEMENT

                 - RELATING TO AN OPTION GRANT OF 500,000 SHARES

     PURSUANT TO THE HYPERION SOLUTIONS CORPORATION 1995 STOCK OPTION/STOCK
         ISSUANCE PLAN AS AMENDED AND RESTATED AS OF AUGUST 21, 1998. -

                        EFFECTIVE AS OF OCTOBER 11, 1999

RECITALS

A.       The Board has adopted the Plan for the purpose of retaining the
services of selected Employees, non-employee members of the Board or the board
of directors of any Parent or Subsidiary and consultants and other independent
advisors who provide services to the Corporation (or any Parent or Subsidiary).

B.       Optionee is to render valuable services to the Corporation (or a Parent
or Subsidiary), and this Agreement is executed pursuant to, and is intended to
carry out the purposes of, the Plan in connection with the Corporation's grant
of an option to Optionee.

C.       All capitalized terms in this Agreement shall have the meaning assigned
to them in the attached Appendix.

                 NOW, THEREFORE, it is hereby agreed as follows:

                  1. GRANT OF OPTION. The Corporation hereby grants to Optionee,
as of the Grant Date, an option to purchase up to the number of Option Shares
specified in the Grant Notice. The Option Shares shall be purchasable from time
to time during the option term specified in Paragraph 2 at the Exercise Price.

                  2. OPTION TERM. This option shall have a term of ten (10)
years measured from the Grant Date and shall accordingly expire at the close of
business on the Expiration Date, unless sooner terminated in accordance with
Paragraph 5 or 6.

                  3. LIMITED TRANSFERABILITY. This option shall be neither
transferable nor assignable by Optionee other than by will or by the laws of
descent and distribution following Optionee's death and may be exercised, during
Optionee's lifetime, only by Optionee.

                  4. DATES OF EXERCISE.

                           i) This option shall become exercisable for the
                  Option Shares in one or more installments as specified in the
                  Grant Notice. As the option becomes exercisable for such
                  installments, those installments shall accumulate and the
                  option shall remain exercisable for the accumulated
                  installments until the Expiration Date or sooner termination
                  of the option term under Paragraph 5 or 6.

                                     PAGE 1
<PAGE>   16
                           ii) In each fiscal year of the Company that the
                  Optionee chooses to exercise such options, he shall exercise
                  those options that are exercisable in the following order:

                                    (A) First, the Optionee shall exercise
                           exercisable Non-Plan Options until the aggregate
                           spread between the exercise price and the fair market
                           value of option shares on the date of exercise is
                           equal to any excess of One Million Dollars
                           ($1,000,000.00) over the amount of compensation other
                           than from exercise of Plan Options that the Optionee
                           reasonably expects to receive in such fiscal year.

                                    (B) Second, the Optionee shall exercise
                           exercisable Plan Options.

                                    (C) The Optionee shall not exercise
                           additional Non-Plan Options in such fiscal year until
                           he has exercised all of his then exercisable Plan
                           Options.

                  5. CESSATION OF SERVICE. The option term specified in
Paragraph 2 shall terminate (and this option shall cease to be outstanding)
prior to the Expiration Date should any of the following provisions become
applicable:

                  (i) Should Optionee cease to remain in Service for any reason
         (other than death, Permanent Disability or Cause) while this option is
         outstanding, then Optionee shall have a period of three (3) months
         (commencing with the date of such cessation of Service) ), or such
         period of time greater than three (3) months as may be determined by
         the Board to be in the best interests of the Corporation, during which
         to exercise this option, but in no event shall this option be
         exercisable at any time after the Expiration Date.

                  (ii) Should Optionee die while this option is outstanding,
         then the personal representative of Optionee's estate or the person or
         persons to whom the option is transferred pursuant to Optionee's will
         or in accordance with the laws of descent and distribution shall have
         the right to exercise this option. Such right shall lapse and this
         option shall cease to be outstanding upon the earlier of (A) the
         expiration of the twelve (12)- month period measured from the date of
         Optionee's death or (B) the Expiration Date.

                  (iii) Should Optionee cease Service by reason of Permanent
         Disability while this option is outstanding, then Optionee shall have a
         period of twelve (12) months (commencing with the date of such
         cessation of Service) during which to exercise this option. In no event
         shall this option be exercisable at any time after the Expiration Date.

                                     PAGE 2
<PAGE>   17
                  (iv) Should Optionee's Service be terminated for Cause, then
         this option shall terminate immediately and cease to remain
         outstanding.

                  (v) During the limited period of post-Service exercisability,
         this option may not be exercised in the aggregate for more than the
         number of vested Option Shares for which the option is exercisable at
         the time of Optionee's cessation of Service. Upon the expiration of
         such limited exercise period or (if earlier) upon the Expiration Date,
         this option shall terminate and cease to be outstanding for any vested
         Option Shares for which the option has not been exercised. To the
         extent Optionee is not vested in the Option Shares at the time of
         Optionee's cessation of Service, this option shall immediately
         terminate and cease to be outstanding with respect to those shares.

                  (vi) In the event of a Corporate Transaction, the provisions
         of Paragraph 6 shall govern the period for which this option is to
         remain exercisable following Optionee's cessation of Service and shall
         supersede any provisions to the contrary in this paragraph.

                  6.       SPECIAL ACCELERATION OF OPTION.

                           a. In the event of a Corporate Transaction, the
                  exercisability of this option, to the extent outstanding at
                  such time but not otherwise fully exercisable, shall
                  automatically accelerate so that this option shall,
                  immediately prior to the effective date of the Corporate
                  Transaction, become exercisable for any or all of the Option
                  Shares at the time subject to this option as fully-vested
                  shares of Common Stock. No such acceleration of this option,
                  however, shall occur if and to the extent: (i) this option is,
                  in connection with the Corporate Transaction, either to be
                  assumed by the successor corporation (or parent thereof) or to
                  be replaced with a comparable option to purchase shares of the
                  capital stock of the successor corporation (or parent thereof)
                  or (ii) this option is to be replaced with a cash incentive
                  program of the successor corporation which preserves the
                  spread existing on the Option Shares for which this option is
                  not exercisable at the time of the Corporate Transaction (the
                  excess of the Fair Market Value of such Option Shares over the
                  aggregate Exercise Price payable for such shares) and provides
                  for subsequent pay-out in accordance with the same exercise
                  schedule in effect for the option pursuant to the option
                  exercise schedule set forth in the Grant Notice. The
                  determination of option comparability under clause (i) shall
                  be made by the Plan Administrator, and such determination
                  shall be final, binding and conclusive.

                           b. Immediately following the Corporate Transaction,
                  this option, to the extent not previously exercised, shall
                  terminate and cease to be outstanding, except to the extent
                  assumed by the successor corporation (or parent thereof) in
                  connection with the Corporate Transaction.

                                     PAGE 3
<PAGE>   18
                           c. If this option is assumed in connection with a
                  Corporate Transaction, then this option shall be appropriately
                  adjusted, immediately after such Corporate Transaction, to
                  apply to the number and class of securities which would have
                  been issuable to Optionee in consummation of such Corporate
                  Transaction had the option been exercised immediately prior to
                  such Corporate Transaction, and appropriate adjustments shall
                  also be made to the Exercise Price, provided the aggregate
                  Exercise Price shall remain the same.

                           d. Upon an Involuntary Termination of Optionee's
                  Service within eighteen (18) months following a Corporate
                  Transaction in which this option is assumed or replaced, the
                  exercisability of this option, to the extent outstanding at
                  such time but not otherwise fully exercisable, shall
                  automatically accelerate so that this option shall immediately
                  become fully exercisable for all the Option Shares at the time
                  subject to this option as fully-vested shares of Common Stock
                  and may be exercised for any or all of those shares at any
                  time prior to the earlier of (i) the Expiration Date or (ii)
                  the expiration of the one (1)-year period measured from the
                  effective date of the Involuntary Termination.

                           e. This Agreement shall not in any way affect the
                  right of the Corporation to adjust, reclassify, reorganize or
                  otherwise change its capital or business structure or to
                  merge, consolidate, dissolve, liquidate or sell or transfer
                  all or any part of its business or assets.

                  7. ADJUSTMENT IN OPTION SHARES. Should any change be made to
the Common Stock by reason of any stock split, stock dividend, recapitalization,
combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without the Corporation's receipt of
consideration, appropriate adjustments shall be made to (i) the total number
and/or class of securities subject to this option and (ii) the Exercise Price in
order to reflect such change and thereby preclude a dilution or enlargement of
benefits hereunder.

                  8. STOCKHOLDER RIGHTS. The holder of this option shall not
have any stockholder rights with respect to the Option Shares until such person
shall have exercised the option, paid the Exercise Price and become a holder of
record of the purchased shares.

                  9. MANNER OF EXERCISING OPTION.

                  a. In order to exercise this option with respect to all or any
         part of the Option Shares for which this option is at the time
         exercisable, Optionee (or any other person or persons exercising the
         option) must take the following actions:

                           (i) Execute and deliver to the Corporation a Notice
                  of Exercise for the Option Shares for which the option is
                  exercised.

                                     PAGE 4
<PAGE>   19
                           (ii) Pay the aggregate Exercise Price for the
                  purchased shares in one or more of the following forms:

                                    (A) cash or check made payable to the
                           Corporation;

                                    (B) a promissory note payable to the
                           Corporation, but only to the extent authorized by the
                           Plan Administrator in accordance with Paragraph 13;

                                    (C) shares of Common Stock held by Optionee
                           (or any other person or persons exercising the
                           option) for the requisite period necessary to avoid a
                           charge to the Corporation's earnings for financial
                           reporting purposes and valued at Fair Market Value on
                           the Exercise Date; or

                                    (D) through a special sale and remittance
                           procedure pursuant to which Optionee (or any other
                           person or persons exercising the option) shall
                           concurrently provide irrevocable written instructions
                           (I) to a Corporation-designated brokerage firm to
                           effect the immediate sale of the purchased shares and
                           remit to the Corporation, out of the sale proceeds
                           available on the settlement date, sufficient funds to
                           cover the aggregate Exercise Price payable for the
                           purchased shares plus all applicable Federal, state
                           and local income and employment taxes required to be
                           withheld by the Corporation by reason of such
                           exercise and (II) to the Corporation to deliver the
                           certificates for the purchased shares directly to
                           such brokerage firm in order to complete the sale
                           transaction.

                           Except to the extent the sale and remittance
         procedure is utilized in connection with the option exercise, payment
         of the Exercise Price must accompany the Notice of Exercise delivered
         to the Corporation in connection with the option exercise.

                                    (iii) Furnish to the Corporation appropriate
                           documentation that the person or persons exercising
                           the option (if other than Optionee) have the right to
                           exercise this option.

                                    (iv) Make appropriate arrangements with the
                           Corporation (or Parent or Subsidiary employing or
                           retaining Optionee) for the satisfaction of all
                           Federal, state and local income and employment tax
                           withholding requirements applicable to the option
                           exercise.

                  b. As soon as practical after the Exercise Date, the
         Corporation shall issue to or on behalf of Optionee (or any other
         person or persons

                                     PAGE 5
<PAGE>   20
         exercising this option) a certificate for the purchased Option Shares,
         with the appropriate legends affixed thereto.

                  c. In no event may this option be exercised for any fractional
         shares.

                  10. COMPLIANCE WITH LAWS AND REGULATIONS.

                  a. The exercise of this option and the issuance of the Option
         Shares upon such exercise shall be subject to compliance by the
         Corporation and Optionee with all applicable requirements of law
         relating thereto and with all applicable regulations of any stock
         exchange (or the Nasdaq National Market, if applicable) on which the
         Common Stock may be listed for trading at the time of such exercise and
         issuance.

                  b. The inability of the Corporation to obtain approval from
         any regulatory body having authority deemed by the Corporation to be
         necessary to the lawful issuance and sale of any Common Stock pursuant
         to this option shall relieve the Corporation of any liability with
         respect to the non-issuance or sale of the Common Stock as to which
         such approval shall not have been obtained. The Corporation, however,
         shall use its best efforts to obtain all such approvals.

                  11. SUCCESSORS AND ASSIGNS. Except to the extent otherwise
provided in Paragraphs 3 and 6, the provisions of this Agreement shall inure to
the benefit of, and be binding upon, the Corporation and its successors and
assigns and Optionee, Optionee's assigns and the legal representatives, heirs
and legatees of Optionee's estate.

                  12. NOTICES. Any notice required to be given or delivered to
the Corporation under the terms of this Agreement shall be in writing and
addressed to the Corporation at its principal corporate offices. Any notice
required to be given or delivered to Optionee shall be in writing and addressed
to Optionee at the address indicated below Optionee's signature line on the
Grant Notice. All notices shall be deemed effective upon personal delivery or
upon deposit in the U.S. mail, postage prepaid and properly addressed to the
party to be notified.

                  13. FINANCING. The Plan Administrator may, in its absolute
discretion and without any obligation to do so, permit Optionee to pay the
Exercise Price for the purchased Option Shares by delivering a promissory note.
The terms of any such promissory note (including the interest rate, the
requirements for collateral and the terms of repayment) shall be established by
the Plan Administrator in its sole discretion.(1)

(1) Authorization of payment of the Exercise Price by a promissory note may,
    under currently proposed Treasury Regulations, result in the loss of
    incentive stock option treatment under the Federal tax laws.

                                     PAGE 6
<PAGE>   21
                  14. CONSTRUCTION. This Agreement and the option evidenced
hereby are made and granted pursuant to the Plan and are in all respects limited
by and subject to the terms of the Plan. All decisions of the Plan Administrator
with respect to any question or issue arising under the Plan or this Agreement
shall be conclusive and binding on all persons having an interest in this
option.

                  15. GOVERNING LAW. The interpretation, performance and
enforcement of this Agreement shall be governed by the laws of the State of
California without resort to that State's conflict-of-laws rules.

                  16. EXCESS SHARES. If the Option Shares covered by this
Agreement exceed, as of the Grant Date, the number of shares of Common Stock
which may without stockholder approval be issued under the Plan, then this
option shall be void with respect to such excess shares, unless stockholder
approval of an amendment sufficiently increasing the number of shares of Common
Stock issuable under the Plan is obtained in accordance with the provisions of
the Plan.

                  17. ADDITIONAL TERMS APPLICABLE TO AN INCENTIVE OPTION. In the
event this option is designated an Incentive Option in the Grant Notice, the
following terms and conditions shall also apply to the grant:

                           (i) This option shall cease to qualify for favorable
                  tax treatment as an Incentive Option if (and to the extent)
                  this option is exercised for one or more Option Shares: (A)
                  more than three (3) months after the date Optionee ceases to
                  be an Employee for any reason other than death or Permanent
                  Disability or (B) more than twelve (12) months after the date
                  Optionee ceases to be an Employee by reason of Permanent
                  Disability.

                           (ii) No installment under this option shall qualify
                  for favorable tax treatment as an Incentive Option if (and to
                  the extent) the aggregate Fair Market Value (determined at the
                  Grant Date) of the Common Stock for which such installment
                  first becomes exercisable hereunder would, when added to the
                  aggregate value (determined as of the respective date or dates
                  of grant) of any earlier installments of the Common Stock and
                  any other securities for which this option or any other
                  Incentive Options granted to Optionee prior to the Grant Date
                  (whether under the Plan or any other option plan of the
                  Corporation or any Parent or Subsidiary) first become
                  exercisable during the same calendar year, exceed One Hundred
                  Thousand Dollars ($100,000) in the aggregate. Should such One
                  Hundred Thousand Dollar ($100,000) limitation be exceeded in
                  any calendar year, this option shall nevertheless become
                  exercisable for the excess shares in such calendar year as a
                  Non-Statutory Option.

                           (iii) Should the exercisability of this option be
                  accelerated upon a Corporate Transaction, then this option
                  shall qualify for favorable tax treatment as an Incentive
                  Option only to the extent the aggregate Fair Market Value
                  (determined at the Grant Date) of the Common Stock for

                                     PAGE 7
<PAGE>   22
                  which this option first becomes exercisable in the calendar
                  year in which the Corporate Transaction occurs does not, when
                  added to the aggregate value (determined as of the respective
                  date or dates of grant) of the Common Stock or other
                  securities for which this option or one or more other
                  Incentive Options granted to Optionee prior to the Grant Date
                  (whether under the Plan or any other option plan of the
                  Corporation or any Parent or Subsidiary) first become
                  exercisable during the same calendar year, exceed One Hundred
                  Thousand Dollars ($100,000) in the aggregate. Should the
                  applicable One Hundred Thousand Dollar ($100,000) limitation
                  be exceeded in the calendar year of such Corporate
                  Transaction, the option may nevertheless be exercised for the
                  excess shares in such calendar year as a Non-Statutory Option.

                           (iv) Should Optionee hold, in addition to this
                  option, one or more other options to purchase Common Stock
                  which become exercisable for the first time in the same
                  calendar year as this option, then the foregoing limitations
                  on the exercisability of such options as Incentive Options
                  shall be applied on the basis of the order in which such
                  options are granted.

         18. COUNTERPARTS. This Agreement may be executed in two counterparts,
each of which shall be deemed an original, and all of which together shall
constitute one and the same instrument.

                                     PAGE 8
<PAGE>   23
                  IN WITNESS WHEREOF the parties have executed this Agreement as
of the date first above written.

                         HYPERION SOLUTIONS CORPORATION

                                                         /s/ Stephen Imbler
                                                     By:________________________

                                                           Stephen Imbler
                                                     Name:______________________

                                                     Title:_____________________

                                                     /s/ Jeffrey R. Rodek
                                                     ___________________________
                                                     Jeffrey R. Rodek

                                                     Address:___________________

                                                             ___________________

                                                             ___________________

                                     PAGE 9
<PAGE>   24
                                    EXHIBIT I

                               NOTICE OF EXERCISE

                 - RELATING TO AN OPTION GRANT OF 500,000 SHARES
     PURSUANT TO THE HYPERION SOLUTIONS CORPORATION 1995 STOCK OPTION/STOCK
         ISSUANCE PLAN AS AMENDED AND RESTATED AS OF AUGUST 21, 1998. -

                  I hereby notify Hyperion Solutions Corporation (the
"Corporation") that I elect to purchase      shares of the Corporation's Common
Stock (the "Purchased Shares") at the option exercise price of $      per share
(the "Exercise Price") pursuant to that certain option (the "Option") granted to
me under the Corporation's 1995 Stock Option /Stock Issuance Plan on         ,
199 .

                  Concurrently with the delivery of this Exercise Notice to the
Corporation, I shall hereby pay to the Corporation the Exercise Price for the
Purchased Shares in accordance with the provisions of my agreement with the
Corporation (or other documents) evidencing the Option and shall deliver
whatever additional documents may be required by such agreement as a condition
for exercise. Alternatively, I may utilize the special broker-dealer sale and
remittance procedure specified in my agreement to effect payment of the Exercise
Price.

                  I hereby certify that this Exercise Notice is being executed
in accordance with the order of exercise specified in Section 2(e)(v) of the
Employment Agreement Between the Corporation and the Optionee dated as of
October 11, 1999.

_______________________, 199__
Date

                                                          ______________________
                                                          Optionee

                                                          Address:______________

                                                          ______________________

Print name in exact manner
it is to appear on the
stock certificate:                                       _______________________

Address to which certificate
is to be sent, if different
from address above:                                      _______________________
                                                         _______________________
                                                         _______________________

Social Security Number:                                  _______________________

                                    PAGE 10
<PAGE>   25
Optionee Number:                                        _______________________

                                    APPENDIX

                  The following definitions shall be in effect under the
Agreement:

A.       AGREEMENT shall mean this Stock Option Agreement.

B.       BOARD shall mean the Corporation's Board of Directors.

C.       CAUSE shall mean: (i) The Optionee's failure to perform in a
satisfactory fashion one or more reasonable and lawful duties assigned to the
Optionee by the Corporation under this Agreement, if such failure continues for
15 days or more after the Corporation has given the Optionee written notice
describing such failure and advising him of the consequences of such failure
under this Agreement; provided that such notice shall be required only with
respect to the first failure;

                           (ii) The Optionee's conviction of, or a plea of
                  "guilty" or "no contest" to, a felony under the laws of the
                  United States or any state thereof;

                           (iii) The Optionee's failure or refusal to carry out
                  the reasonable directives of the Corporation, if such failure
                  continues for three days or more after the Corporation has
                  given the Optionee written notice describing such failure and
                  advising him of the consequences of such failure under this
                  Agreement; provided that such notice shall be required only
                  with respect to the first failure;

                           (iv) Any breach of this Agreement, the Proprietary
                  Information and Inventions Agreement between the Optionee and
                  the Corporation, or any other agreement between the Optionee
                  and the Corporation;

                           (v) Threats or acts of violence directed at any
                  present, former or prospective employee, independent
                  contractor, vendor, customer or business partner of the
                  Corporation (or any of the Corporation's affiliates); or

                           (vi) The commission of any act of fraud, embezzlement
                  or dishonesty by Optionee, any unauthorized use or disclosure
                  by Optionee of confidential information or trade secrets of
                  the Corporation (or any of the Corporation's affiliates), or
                  any other intentional misconduct by Optionee affecting the
                  business or affairs of the Corporation (or any of the
                  Corporation's affiliates) in a material manner.

                                    PAGE 11
<PAGE>   26
D.       CODE shall mean the Internal Revenue Code of 1986, as amended.

E.       COMMON STOCK shall mean the Corporation's common stock.

F.       CORPORATE TRANSACTION shall mean either of the following
stockholder-approved transactions to which the Corporation is a party:

                           (i) a merger or consolidation in which securities
                  possessing more than fifty percent (50%) of the total combined
                  voting power of the Corporation's outstanding securities are
                  transferred to a person or persons different from the persons
                  holding those securities immediately prior to such
                  transaction, or

                           (ii) the sale, transfer or other disposition of all
                  or substantially all of the Corporation's assets in complete
                  liquidation or dissolution of the Corporation.

G.       CORPORATION shall mean Hyperion Solutions Corporation, a Delaware
corporation.

H.       EMPLOYEE shall mean an individual who is in the employ of the
Corporation (or any Parent or Subsidiary), subject to the control and direction
of the employer entity as to both the work to be performed and the manner and
method of performance.

I.       EXERCISE DATE shall mean the date on which the option shall have been
exercised in accordance with Paragraph 9 of the Agreement.

J.       EXERCISE PRICE shall mean the exercise price per share as specified in
the Grant Notice.

K.       EXPIRATION DATE shall mean the date on which the option expires as
specified in the Grant Notice.

L.       FAIR MARKET VALUE per share of Common Stock on any relevant date shall
be determined in accordance with the following provisions:

                           (i) If the Common Stock is at the time traded on the
                  Nasdaq National Market, then the Fair Market Value shall be
                  the closing selling price per share of Common Stock on the
                  date in question, as the price is reported by the National
                  Association of Securities Dealers on the Nasdaq National
                  Market or any successor system. If there is no closing selling
                  price for the Common Stock on the date in question, then the
                  Fair Market Value shall be the closing selling price on the
                  last preceding date for which such quotation exists.

                           (ii) If the Common Stock is at the time listed on any
                  Stock Exchange, then the Fair Market Value shall be the
                  closing selling price per share of Common Stock on the date in
                  question on the Stock Exchange

                                    PAGE 12
<PAGE>   27
                  determined by the Plan Administrator to be the primary market
                  for the Common Stock, as such price is officially quoted in
                  the composite tape of transactions on such exchange. If there
                  is no closing selling price for the Common Stock on the date
                  in question, then the Fair Market Value shall be the closing
                  selling price on the last preceding date for which such
                  quotation exists.

M.       GRANT DATE shall mean the date of grant of the option as specified in
the Grant Notice.

N.       GRANT NOTICE shall mean the Notice of Grant of Stock Option
accompanying the Agreement, pursuant to which Optionee has been informed of the
basic terms of the option evidenced hereby.

O.       INCENTIVE OPTION shall mean an option which satisfies the requirements
of Code Section 422.

P.       INVOLUNTARY TERMINATION shall mean the termination of Optionee's
Service which occurs by reason of:

                           (i) Optionee's involuntary dismissal or discharge by
                  the Corporation for reasons other than for Cause, or

                           (ii) Optionee's voluntary resignation following (A) A
                  significant diminution in the nature or scope of the
                  Optionee's authority, duties or responsibilities in effect
                  immediately prior to the Change in Control; (B) Any reduction
                  in the rate of the Optionee's Base Compensation in effect
                  immediately prior to the Change in Control or a reduction of
                  25% or more in the value of the Optionee's aggregate
                  compensation and benefits in effect immediately prior to the
                  Change in Control; (C) The relocation of the Optionee's
                  principal place of employment to a site more than 25 miles
                  removed from his principal place of employment immediately
                  prior to the Change in Control; or (D) An increase of 25% or
                  more in the average amount of time per month that the Optionee
                  is required to be away from his principal place of employment,
                  relative to the average amount of time per month that the
                  Optionee was required to be away from his principal place of
                  employment immediately prior to the Change in Control.

Q.       NON-PLAN OPTIONS shall mean the Option Shares granted to the Optionee
pursuant to the Option Agreement Between the Corporation and the Optionee
Relating to an Option Grant of 600,000 Shares, dated as of October 11, 1999; and
any other Option Shares granted to the Optionee that were not granted pursuant
to the Plan or any other such plan adopted by the Corporation.

R.       NON-STATUTORY OPTION shall mean an option not intended to satisfy the
requirements of Code Section 422.

                                    PAGE 13
<PAGE>   28
S.       NOTICE OF EXERCISE shall mean the notice of exercise in the form
attached hereto as Exhibit I.

T.       OPTION SHARES shall mean the number of shares of Common Stock subject
to stock options granted to the Optionee by the Corporation.

U.       OPTIONEE shall mean the person to whom the option is granted as
specified in the Grant Notice.

V.       PARENT shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

W.       PERMANENT DISABILITY shall mean the inability of Optionee to engage in
any substantial gainful activity by reason of any medically determinable
physical or mental impairment which is expected to result in death or has lasted
or can be expected to last for a continuous period of twelve (12) months or
more.

X.       PLAN shall mean the Corporation's 1995 Stock Option/Stock Issuance
Plan.

Y.       PLAN ADMINISTRATOR shall mean either the Board or a committee of Board
members, to the extent the committee is at the time responsible for the
administration of the Plan.

Z.       PLAN OPTIONS shall mean the Option Shares granted pursuant to this
Agreement and any other Option Shares granted to the Optionee under the Plan or
any other such plan adopted by the Corporation.

AA.      SERVICE shall mean the Optionee's performance of services for the
Corporation (or any Parent or Subsidiary) in the capacity of an Employee, a
non-employee member of the board of directors or a consultant or independent
advisor.

BB.      STOCK EXCHANGE shall mean the American Stock Exchange or the New York
Stock Exchange.

CC.      SUBSIDIARY shall mean any corporation (other than the Corporation) in
an unbroken chain of corporations beginning with the Corporation, provided each
corporation (other than the last corporation) in the unbroken chain owns, at the
time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

                                    PAGE 14
<PAGE>   29
                                          Hyperion Solutions Corporation

HYPERION SOLUTIONS CORPORATION            ID:  77-027777
NOTICE OF GRANT OF STOCK OPTIONS          1344 Crossman Avenue
                                          Sunnyvale, CA  94089

                                          OPTION NUMBER: ___________
                                          PLAN:          1995 STOCK OPTION/STOCK
                                                         ISSUANCE PLAN

                                          ID:            ____________

Notice is hereby given of the following option grant (the "Option") to purchase
shares of the Common Stock of Hyperion Solutions Corporation (the
"Corporation").

            Optionee:                           Jeffrey R. Rodek
            Grant Date:                         October 11, 1999
            Vesting Commencement Date:          October 11, 1999
            Exercise Price:                     $19.063 per share
            Expiration Date:                    October 11, 2009
            Number of Option Shares:            500,000 Total Option Shares

                  Exercise Schedule: The Option shall become exercisable with
                  respect to (i) twenty-five percent (25%) of the Total Option
                  Shares upon Optionee's completion of one (1) year of Service
                  measured from the Vesting Commencement Date and (ii) the
                  balance of the Option Shares in successive equal monthly
                  installments upon Optionee's completion of each of the next
                  thirty-six (36) months of Service measured from and after the
                  first anniversary of the Vesting Commencement Date. In no
                  event shall the Option become exercisable for any additional
                  Option Shares after Optionee's cessation of Service.

                  Exercise Order: In each fiscal year of the Corporation that
                  the Optionee chooses to exercise this option, he shall
                  exercise this option for those Option Shares that are then
                  exercisable in conjunction with the Non-Plan Option(s) in the
                  order of exercise specified in Section 4(ii) of the Stock
                  Option Agreement between the Corporation and the Optionee
                  relating to a grant of 500,000 shares (the "Agreement") dated
                  as of October 11, 1999.

                  Optionee understands and agrees that the Option is granted
subject to and in accordance with the terms of the Hyperion Solutions
Corporation 1995 Stock Option/Stock Issuance Plan (the "Plan"). Optionee further
agrees to be bound by the terms of the Plan and the terms of the Option as set
forth in the Agreement.

                  Optionee hereby acknowledges access to and receipt of the
official prospectus for the Plan via GlobalSource (the Corporation's intranet at
http://globalsource). A copy of the Plan is available upon request made to the
Corporate Secretary at the Corporation's principal offices.

                  The Option shall be considered an Incentive Stock Option to
the maximum extent permitted in each calendar year under Section 422(d) of the
Internal Revenue Code of 1986, as amended.

                  No Employment or Service Contract. Nothing in this Notice or
in the attached Stock Option Agreement or Plan shall confer upon Optionee any
right to continue in Service for any period of specific duration or interfere
with or otherwise restrict in any way the rights of the Corporation (or any
Parent or Subsidiary employing or retaining Optionee) or of Optionee, which
rights are hereby expressly reserved by each, to terminate Optionee's Service at
any time for any reason, with or without cause.

                  Definitions. All capitalized terms in this Notice shall have
the meaning assigned to them in this Notice or in the attached Stock Option
Agreement.

HYPERION SOLUTIONS CORPORATION
OPTIONEE

/s/ Jeffrey R. Rodek                               /s/ Stephen V. Imbler
------------------------------                     -----------------------------
                                                   Stephen V. Imbler
                                                   Interim President and CEO

<PAGE>   30
                         HYPERION SOLUTIONS CORPORATION

                             STOCK OPTION AGREEMENT

               - RELATING TO AN OPTION GRANT OF 600,000 SHARES -

                        EFFECTIVE AS OF OCTOBER 11, 1999

RECITALS

         A. The Compensation Committee has approved this Stock Option Agreement
for the purpose of retaining the services of JEFFREY R. RODEK (the "Optionee").

         B. Optionee is to render valuable services to the Corporation (or a
Parent or Subsidiary), and this Agreement is intended to promote the interests
of the Corporation by providing Optionee with the opportunity to acquire a
proprietary interest, or otherwise increase his proprietary interest, in the
Corporation as an incentive for him to remain in the service of the Corporation.

         C. All capitalized terms in this Agreement shall have the meaning
assigned to them in the attached Appendix.

                 NOW, THEREFORE, it is hereby agreed as follows:

                  1. GRANT OF OPTION. The Corporation hereby grants to Optionee,
as of the Grant Date, an option to purchase up to the number of Option Shares
specified in the Grant Notice. The option granted herein shall be a
Non-Statutory Option. The Option Shares shall be purchasable from time to time
during the option term specified in Paragraph 2 at the Exercise Price.

                  2. OPTION TERM. This option shall have a term of ten (10)
years measured from the Grant Date and shall accordingly expire at the close of
business on the Expiration Date, unless sooner terminated in accordance with
Paragraph 5 or 6.

                  3. LIMITED TRANSFERABILITY. This option shall be neither
transferable nor assignable by Optionee other than by will or by the laws of
descent and distribution following Optionee's death and may be exercised, during
Optionee's lifetime, only by Optionee. However, this option may be assigned in
whole or in part during the Optionee's lifetime in accordance with the terms of
a Qualified Domestic Relations Order. The assigned portion may only be exercised
by the person or persons who acquire a proprietary interest in the option
pursuant to such Qualified Domestic Relations Order. The terms applicable to the
assigned portion shall be the same as those in effect for the option immediately
prior to such assignment and shall be set forth in such documents issued to the
assignee as the Compensation Committee may deem appropriate.

                  4. DATES OF EXERCISE.

                                       1
<PAGE>   31
                  i) This option shall become exercisable for the Option Shares
         in one or more installments as specified in the Grant Notice. As the
         option becomes exercisable for such installments, those installments
         shall accumulate and the option shall remain exercisable for the
         accumulated installments until the Expiration Date or sooner
         termination of the option term under Paragraph 5 or 6.

                  (ii) In each fiscal year of the Company that the Optionee
         chooses to exercise this option, he shall exercise those Option Shares
         that are exercisable in the following order:

                           (A) First, the Optionee shall exercise exercisable
                  Non-Plan Options until the aggregate spread between the
                  exercise price and the fair market value of option shares on
                  the date of exercise is equal to any excess of One Million
                  Dollars ($1,000,000.00) over the amount of compensation other
                  than from exercise of Plan Options that the Optionee
                  reasonably expects to receive in such fiscal year.

                           (B) Second, the Optionee shall exercise exercisable
                  Plan Options.

                           (C) The Optionee shall not exercise additional
                  Non-Plan Options in such fiscal year until he has exercised
                  all of his then exercisable Plan Options.

                  5.       CESSATION OF SERVICE. The option term specified in
Paragraph 2 shall terminate (and this option shall cease to be outstanding)
prior to the Expiration Date should any of the following provisions become
applicable:

                           (i) Should Optionee cease to remain in Service for
                  any reason (other than death or for Cause) while this option
                  is outstanding, then Optionee shall have a period of three (3)
                  months (commencing with the date of such cessation of
                  Service), or such period of time greater than three (3) months
                  as may be determined by the Board to be in the best interests
                  of the Corporation, during which to exercise this option, but
                  in no event shall this option be exercisable at any time after
                  the Expiration Date.

                           (ii) Should Optionee die while this option is
                  outstanding, then the personal representative of Optionee's
                  estate or the person or persons to whom the option is
                  transferred pursuant to Optionee's will or in accordance with
                  the laws of descent and distribution shall have the right to
                  exercise this option. Such right shall lapse and this option
                  shall cease to be outstanding upon the earlier of (A) the
                  expiration of the twelve (12)- month period measured from the
                  date of Optionee's death or (B) the Expiration Date.

                           (iii) Should Optionee cease Service by reason of
                  Permanent Disability while this option is outstanding, then
                  Optionee shall have a period of twelve (12) months (commencing
                  with the date of such cessation of Service) during which to

                                       2
<PAGE>   32
                  exercise this option. In no event shall this option be
                  exercisable at any time after the Expiration Date.

                           (iv) Should Optionee's Service be terminated for
                  Cause, then this option shall terminate immediately and cease
                  to remain outstanding.

                           (v) During the limited period of post-Service
                  exercisability, this option may not be exercised in the
                  aggregate for more than the number of vested Option Shares for
                  which the option is exercisable at the time of Optionee's
                  cessation of Service. Upon the expiration of such limited
                  exercise period or (if earlier) upon the Expiration Date, this
                  option shall terminate and cease to be outstanding for any
                  vested Option Shares for which the option has not been
                  exercised. To the extent Optionee is not vested in the Option
                  Shares at the time of Optionee's cessation of Service, this
                  option shall immediately terminate and cease to be outstanding
                  with respect to those shares.

                           (vi) In the event of a Corporate Transaction, the
                  provisions of Paragraph 6 shall govern the period for which
                  this option is to remain exercisable following Optionee's
                  cessation of Service and shall supersede any provisions to the
                  contrary in this paragraph.

                  6.       SPECIAL ACCELERATION OF OPTION.

                           (i) In the event of a Corporate Transaction, the
                  exercisability of this option, to the extent outstanding at
                  such time but not otherwise fully exercisable, shall
                  automatically accelerate so that this option shall,
                  immediately prior to the effective date of the Corporate
                  Transaction, become exercisable for any or all of the Option
                  Shares at the time subject to this option as fully-vested
                  shares of Common Stock. No such acceleration of this option,
                  however, shall occur if and to the extent: (x) this option is,
                  in connection with the Corporate Transaction, either to be
                  assumed by the successor corporation (or parent thereof) or to
                  be replaced with a comparable option to purchase shares of the
                  capital stock of the successor corporation (or parent thereof)
                  or (y) this option is to be replaced with a cash incentive
                  program of the successor corporation which preserves the
                  spread existing on the Option Shares for which this option is
                  not exercisable at the time of the Corporate Transaction (the
                  excess of the Fair Market Value of such Option Shares over the
                  aggregate Exercise Price payable for such shares) and provides
                  for subsequent pay-out in accordance with the same exercise
                  schedule in effect for the option pursuant to the option
                  exercise schedule set forth in the Grant Notice. The
                  determination of option comparability under clause (x) shall
                  be made by the Compensation Committee, and such determination
                  shall be final, binding and conclusive.

                           (ii) Immediately following the Corporate Transaction,
                  this option, to the extent not previously exercised, shall
                  terminate and cease to be outstanding, except to the extent
                  assumed by the successor corporation (or parent thereof) in
                  connection with the Corporate Transaction.

                                       3
<PAGE>   33
                           (iii) If this option is assumed in connection with a
                  Corporate Transaction, then this option shall be appropriately
                  adjusted, immediately after such Corporate Transaction, to
                  apply to the number and class of securities which would have
                  been issuable to Optionee in consummation of such Corporate
                  Transaction had the option been exercised immediately prior to
                  such Corporate Transaction, and appropriate adjustments shall
                  also be made to the Exercise Price, provided the aggregate
                  Exercise Price shall remain the same.

                           (iv) Upon an Involuntary Termination of Optionee's
                  Service within eighteen (18) months following a Corporate
                  Transaction in which this option is assumed or replaced, the
                  exercisability of this option, to the extent outstanding at
                  such time but not otherwise fully exercisable, shall
                  automatically accelerate so that this option shall immediately
                  become fully exercisable for all the Option Shares at the time
                  subject to this option as fully-vested shares of Common Stock
                  and may be exercised for any or all of those shares at any
                  time prior to the earlier of (x) the Expiration Date or (y)
                  the expiration of the one (1)-year period measured from the
                  effective date of the Involuntary Termination.

                           (v) The Compensation Committee shall have the
                  discretion, exercisable either at the time the option is
                  granted or at any time while the option remains outstanding,
                  to (x) provide for the automatic acceleration of vesting in
                  this option upon the occurrence of a Change in Control or (y)
                  condition any such option acceleration (and the termination of
                  any outstanding repurchase rights) upon the subsequent
                  Involuntary Termination within a specified period following
                  the effective date of such Change in Control. Any Option
                  Shares accelerated in connection with a Change in Control
                  shall remain fully exercisable until the expiration or sooner
                  termination of the option term.

                           (vi) This Agreement shall not in any way affect the
                  right of the Corporation to adjust, reclassify, reorganize or
                  otherwise change its capital or business structure or to
                  merge, consolidate, dissolve, liquidate or sell or transfer
                  all or any part of its business or assets.

                  7.       ADJUSTMENT IN OPTION SHARES. Should any change be
made to the Common Stock by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's
receipt of consideration, appropriate adjustments shall be made to (i) the total
number and/or class of securities subject to this option and (ii) the Exercise
Price in order to reflect such change and thereby preclude a dilution or
enlargement of benefits hereunder.

                  8.       STOCKHOLDER RIGHTS. The holder of this option shall
not have any stockholder rights with respect to the Option Shares until such
person shall have exercised the option, paid the Exercise Price and become a
holder of record of the purchased shares.

                                       4
<PAGE>   34
                  9.       MANNER OF EXERCISING OPTION.

                           (i) In order to exercise this option with respect to
                  all or any part of the Option Shares for which this option is
                  at the time exercisable, Optionee (or any other person or
                  persons exercising the option) must take the following
                  actions:

                                    A. Execute and deliver to the Corporation a
                           Notice of Exercise for the Option Shares for which
                           the option is exercised.

                                    B. Pay the aggregate Exercise Price for the
                           purchased shares in one or more of the following
                           forms:

                                             a. cash or check made payable to
                                    the Corporation;

                                             b. a promissory note payable to the
                                    Corporation, but only to the extent
                                    authorized by the Compensation Committee in
                                    accordance with Paragraph 13;

                                             c. shares of Common Stock held by
                                    Optionee (or any other person or persons
                                    exercising the option) for the requisite
                                    period necessary to avoid a charge to the
                                    Corporation's earnings for financial
                                    reporting purposes and valued at Fair Market
                                    Value on the Exercise Date; or

                                             d. through a special sale and
                                    remittance procedure pursuant to which
                                    Optionee (or any other person or persons
                                    exercising the option) shall concurrently
                                    provide irrevocable written instructions (x)
                                    to a Corporation-designated brokerage firm
                                    to effect the immediate sale of the
                                    purchased shares and remit to the
                                    Corporation, out of the sale proceeds
                                    available on the settlement date, sufficient
                                    funds to cover the aggregate Exercise Price
                                    payable for the purchased shares plus all
                                    applicable Federal, state and local income
                                    and employment taxes required to be withheld
                                    by the Corporation by reason of such
                                    exercise and (y) to the Corporation to
                                    deliver the certificates for the purchased
                                    shares directly to such brokerage firm in
                                    order to complete the sale transaction.

                  Except to the extent the sale and remittance procedure is
utilized in connection with the option exercise, payment of the Exercise Price
must accompany the Notice of Exercise delivered to the Corporation in connection
with the option exercise.

                           C. Furnish to the Corporation appropriate
                  documentation that the person or persons exercising the option
                  (if other than Optionee) have the right to exercise this
                  option.

                                       5
<PAGE>   35
                           D. Make appropriate arrangements with the Corporation
                  (or Parent or Subsidiary employing or retaining Optionee) for
                  the satisfaction of all Federal, state and local income and
                  employment tax withholding requirements applicable to the
                  option exercise. Such arrangements may include, but are not
                  limited to, the following:

                                    a. Stock Withholding: The election to have
                           the Corporation withhold, from the shares of Common
                           Stock otherwise issuable upon the exercise of this
                           option, a portion of those shares with an aggregate
                           Fair Market Value equal to the percentage of the
                           Taxes (not to exceed one hundred percent (100%))
                           designated by the holder.

                                    b. Stock Delivery: The election to deliver
                           to the Corporation, at the time this option is
                           exercised or the shares vest, one or more shares of
                           Common Stock previously acquired by Optionee (other
                           than in connection with the option exercise
                           triggering the Taxes) with an aggregate Fair Market
                           Value equal to the percentage of the Taxes (not to
                           exceed one hundred percent (100%)) designated by the
                           Optionee.

                  (ii) As soon as practical after the Exercise Date, the
         Corporation shall issue to or on behalf of Optionee (or any other
         person or persons exercising this option) a certificate for the
         purchased Option Shares, with the appropriate legends affixed thereto.

                  (iii) In no event may this option be exercised for any
         fractional shares.

         10.      COMPLIANCE WITH LAWS AND REGULATIONS.

                  (i) The exercise of this option and the issuance of the Option
         Shares upon such exercise shall be subject to compliance by the
         Corporation and Optionee with all applicable requirements of law
         relating thereto and with all applicable regulations of any stock
         exchange (or the Nasdaq National Market, if applicable) on which the
         Common Stock may be listed for trading at the time of such exercise and
         issuance.

                  (ii) The inability of the Corporation to obtain approval from
         any regulatory body having authority deemed by the Corporation to be
         necessary to the lawful issuance and sale of any Common Stock pursuant
         to this option shall relieve the Corporation of any liability with
         respect to the non-issuance or sale of the Common Stock as to which
         such approval shall not have been obtained. The Corporation, however,
         shall use its best efforts to obtain all such approvals.

         11.      REGISTRATION. The Company agrees to take all actions necessary
to file with the U.S. Securities and Exchange Commission, within sixty (60) days
from the date of this Agreement, a Registration Statement on Form S-8 with
respect to the shares of the

                                       6
<PAGE>   36
Company's common stock issuable upon exercise of the options pursuant to this
Agreement and to use commercially reasonable efforts to maintain the
effectiveness of such registration statement.

         12.      SUCCESSORS AND ASSIGNS. Except to the extent otherwise
provided in Paragraphs 3 and 6, the provisions of this Agreement shall inure to
the benefit of, and be binding upon, the Corporation and its successors and
assigns and Optionee, Optionee's assigns and the legal representatives, heirs
and legatees of Optionee's estate.

         13.      NOTICES. Any notice required to be given or delivered to the
Corporation under the terms of this Agreement shall be in writing and addressed
to the Corporation at its principal corporate offices. Any notice required to be
given or delivered to Optionee shall be in writing and addressed to Optionee at
the address indicated below Optionee's signature line on the Grant Notice. All
notices shall be deemed effective upon personal delivery or upon deposit in the
U.S. mail, postage prepaid and properly addressed to the party to be notified.

         14.      FINANCING. The Compensation Committee may, in its absolute
discretion and without any obligation to do so, permit Optionee to pay the
Exercise Price for the purchased Option Shares by delivering a promissory note.
The terms of any such promissory note (including the interest rate, the
requirements for collateral and the terms of repayment) shall be established by
the Compensation Committee in its sole discretion. Promissory notes may be
authorized with or without security or collateral. In all events, the maximum
credit available to the Optionee may not exceed the sum of (i) the aggregate
option exercise price or purchase price payable for the purchased shares plus
(ii) any Federal, state and local income and employment tax liability incurred
by the Optionee in connection with the option exercise. The Compensation
Committee may, in its discretion, determine that one or more such promissory
notes shall be subject to forgiveness by the Corporation in whole or in part
upon such terms as the Compensation Committee may deem appropriate.

         15.      CANCELLATION AND REGRANT OF THIS OPTION. The Compensation
Committee shall have the authority to effect, at any time and from time to time,
with the consent of the Optionee, the cancellation of any or all outstanding
Option Shares under this Agreement and to grant in substitution new options
covering the same or different number of shares of Common Stock but with an
exercise price per share based on the Fair Market Value per share of Common
Stock on the new option grant date.

         16.      CONSTRUCTION. This Agreement and the option evidenced hereby
are made and granted pursuant to resolutions approved by the Compensation
Committee and are in all respects limited by and subject to the terms of such
resolutions.

         17.      GOVERNING LAW. The interpretation, performance and enforcement
of this Agreement shall be governed by the laws of the State of California
without resort to that State's conflict-of-laws rules.

                                       7
<PAGE>   37
         18.      COUNTERPARTS. This Agreement may be executed in two
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

                                       8
<PAGE>   38
                  IN WITNESS WHEREOF the parties have executed this Agreement as
of the date first above written.

                                      HYPERION SOLUTIONS CORPORATION

                                       By: /s/ Stephen Imbler
                                          --------------------------------------

                                      Name: Stephen Imbler
                                            ------------------------------------

                                     Title:
                                            ------------------------------------

                                            /s/ Jeffrey R. Rodek
                                            ------------------------------------
                                            Jeffrey R. Rodek

                                    Address:
                                            ------------------------------------
                                            ------------------------------------
                                            ------------------------------------

                                       9
<PAGE>   39
                                    EXHIBIT A

                               NOTICE OF EXERCISE

                - RELATING TO AN OPTION GRANT OF 600,000 SHARES -

                  I hereby notify Hyperion Solutions Corporation (the
"Corporation") that I elect to purchase         shares of the Corporation's
Common Stock (the "Purchased Shares") at the option exercise price of $      per
share (the "Exercise Price") pursuant to that certain option (the "Option")
granted to me under the Stock Option Agreement between the Corporation and me
dated October __, 1999.

                  Concurrently with the delivery of this Exercise Notice to the
Corporation, I shall hereby pay to the Corporation the Exercise Price for the
Purchased Shares in accordance with the provisions of my agreement with the
Corporation (or other documents) evidencing the Option and shall deliver
whatever additional documents may be required by such agreement as a condition
for exercise. Alternatively, I may utilize the special broker-dealer sale and
remittance procedure specified in my agreement to effect payment of the Exercise
Price.

                  I hereby certify that this Exercise Notice is being executed
in accordance with the order of exercise specified in Section 2(e)(v) of the
Employment Agreement Between the Corporation and the Optionee dated as of
October 11, 1999.

                        , 200__
------------------------
Date

                                                          ----------------------
                                                          Optionee

                                                          Address:
                                                                  --------------

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

Print name in exact manner
it is to appear on the
stock certificate:                                        ----------------------

Address to which certificate
is to be sent, if different
from address above:                                       ----------------------

Social Security Number:                                   ----------------------

Employee Number:                                          ----------------------

                                       10
<PAGE>   40
                                    APPENDIX

                  The following definitions shall be in effect under the
Agreement:

A.       AGREEMENT shall mean this Stock Option Agreement.

B.       BOARD shall mean the Corporation's Board of Directors.

C.       CAUSE shall mean: (i) The Optionee's failure to perform in a
satisfactory fashion one or more reasonable and lawful duties assigned to the
Optionee by the Corporation under this Agreement, if such failure continues for
15 days or more after the Corporation has given the Optionee written notice
describing such failure and advising him of the consequences of such failure
under this Agreement; provided that such notice shall be required only with
respect to the first failure;

                           (ii) The Optionee's conviction of, or a plea of
                  "guilty" or "no contest" to, a felony under the laws of the
                  United States or any state thereof;

                           (iii) The Optionee's failure or refusal to carry out
                  the reasonable directives of the Corporation, if such failure
                  continues for three days or more after the Corporation has
                  given the Optionee written notice describing such failure and
                  advising him of the consequences of such failure under this
                  Agreement; provided that such notice shall be required only
                  with respect to the first failure;

                           (iv) Any breach of this Agreement, the Proprietary
                  Information and Inventions Agreement between the Optionee and
                  the Corporation, or any other agreement between the Optionee
                  and the Corporation;

                           (v) Threats or acts of violence directed at any
                  present, former or prospective employee, independent
                  contractor, vendor, customer or business partner of the
                  Corporation (or any of the Corporation's affiliates); or

                           (vi) The commission of any act of fraud, embezzlement
                  or dishonesty by Optionee, any unauthorized use or disclosure
                  by Optionee of confidential information or trade secrets of
                  the Corporation (or any of the Corporation's affiliates), or
                  any other intentional misconduct by Optionee affecting the
                  business or affairs of the Corporation (or any of the
                  Corporation's affiliates) in a material manner.

D.       CHANGE IN CONTROL shall mean a change in ownership or control of the
Corporation effected through either of the following transactions:

                           (i) the acquisition, directly or indirectly, by any
                  person or related group of persons (other than the Corporation
                  or a person that directly or indirectly

                                      A-1
<PAGE>   41
                  controls, is controlled by, or is under common control with,
                  the Corporation), of beneficial ownership (within the meaning
                  of Rule 13d-3 of the 1934 Act) of securities possessing more
                  than fifty percent (50%) of the total combined voting power of
                  the Corporation's outstanding securities pursuant to a tender
                  or exchange offer made directly to the Corporation's
                  stockholders which the Board does not recommend such
                  stockholders to accept, or

                           (ii) a change in the composition of the Board over a
                  period of thirty-six (36) consecutive months or less such that
                  a majority of the Board members ceases, by reason of one or
                  more contested elections for Board membership, to be comprised
                  of individuals who either (A) have been Board members
                  continuously since the beginning of such period or (B) have
                  been elected or nominated for election as Board members during
                  such period by at least a majority of the Board members
                  described in clause (A) who were still in office at the time
                  the Board approved such election or nomination.

E.       CODE shall mean the Internal Revenue Code of 1986, as amended.

F.       COMMON STOCK shall mean the Corporation's common stock.

G.       COMPENSATION COMMITTEE shall mean a subcommittee of the Board composed
of outside members of the Board which makes policy determinations regarding
executive compensation.

H.       CORPORATE TRANSACTION shall mean either of the following
stockholder-approved transactions to which the Corporation is a party:

                           (i) a merger or consolidation in which securities
                  possessing more than fifty percent (50%) of the total combined
                  voting power of the Corporation's outstanding securities are
                  transferred to a person or persons different from the persons
                  holding those securities immediately prior to such
                  transaction, or

                           (ii) the sale, transfer or other disposition of all
                  or substantially all of the Corporation's assets in complete
                  liquidation or dissolution of the Corporation.

I.       CORPORATION shall mean Hyperion Solutions Corporation, a Delaware
corporation.

J.       DOMESTIC RELATIONS ORDER shall mean any judgment, decree or order
(including approval of a property settlement agreement) which provides or
otherwise conveys, pursuant to applicable State domestic relations laws
(including community property laws), marital property rights to any spouse or
former spouse of the Optionee.

K.       EMPLOYEE shall mean an individual who is in the employ of the
Corporation (or any Parent or Subsidiary), subject to the control and direction
of the employer entity as to both the work to be performed and the manner and
method of performance.

                                      A-2
<PAGE>   42
L.       EXERCISE DATE shall mean the date on which the option shall have been
exercised in accordance with Paragraph 9 of the Agreement.

M.       EXERCISE PRICE shall mean the exercise price per share as specified in
the Grant Notice.

N.       EXPIRATION DATE shall mean the date on which the option expires as
specified in the Grant Notice.

O.       FAIR MARKET VALUE per share of Common Stock on any relevant date shall
be determined in accordance with the following provisions:

                           (i) If the Common Stock is at the time traded on the
                  Nasdaq National Market, then the Fair Market Value shall be
                  the closing selling price per share of Common Stock on the
                  date in question, as the price is reported by the National
                  Association of Securities Dealers on the Nasdaq National
                  Market or any successor system. If there is no closing selling
                  price for the Common Stock on the date in question, then the
                  Fair Market Value shall be the closing selling price on the
                  last preceding date for which such quotation exists.

                           (ii) If the Common Stock is at the time listed on any
                  Stock Exchange, then the Fair Market Value shall be the
                  closing selling price per share of Common Stock on the date in
                  question on the Stock Exchange determined by the Plan
                  Administrator to be the primary market for the Common Stock,
                  as such price is officially quoted in the composite tape of
                  transactions on such exchange. If there is no closing selling
                  price for the Common Stock on the date in question, then the
                  Fair Market Value shall be the closing selling price on the
                  last preceding date for which such quotation exists.

P.       GRANT DATE shall mean the date of grant of the option as specified in
the Grant Notice.

Q.       GRANT NOTICE shall mean the Notice of Grant of Stock Option
accompanying the Agreement, pursuant to which Optionee has been informed of the
basic terms of the option evidenced hereby.

R.       INVOLUNTARY TERMINATION shall mean the termination of Optionee's
Service which occurs by reason of:

                           (i) Optionee's involuntary dismissal or discharge by
                  the Corporation for reasons other than for Cause, or

                           (ii) Optionee's voluntary resignation following (A) A
                  significant diminution in the nature or scope of the
                  Optionee's authority, duties or responsibilities in effect
                  immediately prior to the Change in Control; (B) Any reduction
                  in the rate of the Optionee's Base Compensation in effect
                  immediately prior to the Change in Control or a reduction of
                  25% or more in the value of the Optionee's aggregate
                  compensation and benefits in effect immediately prior to the
                  Change in Control; (C) The

                                      A-3
<PAGE>   43
                  relocation of the Optionee's principal place of employment to
                  a site more than 25 miles removed from his principal place of
                  employment immediately prior to the Change in Control; or (D)
                  An increase of 25% or more in the average amount of time per
                  month that the Optionee is required to be away from his
                  principal place of employment, relative to the average amount
                  of time per month that the Optionee was required to be away
                  from his principal place of employment immediately prior to
                  the Change in Control.

S.       NON-PLAN OPTIONS shall mean the Option Shares granted pursuant to this
Agreement and any other Option Shares which the Optionee may seek to exercise
that were not granted under the Option/Issuance Plan or any other such plan as
may be adopted by the Corporation.

T.       NON-STATUTORY OPTIONS shall mean Option Shares not intended to satisfy
the requirements of Code Section 422.

U.       NOTICE OF EXERCISE shall mean the notice of exercise in the form
attached hereto as Exhibit I.

V.       OPTION/ISSUANCE PLAN shall mean the Corporation's 1995 Stock
Option/Stock Issuance Plan as amended and restated as of August 21, 1998.

W.       OPTION SHARES shall mean the number of shares of Common Stock subject
to the stock options granted by the Corporation to the Optionee.

X.       OPTIONEE shall refer to Mr. Jeffrey R. Rodek.

Y.       PARENT shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

Z.       PERMANENT DISABILITY shall mean the inability of Optionee to engage in
any substantial gainful activity by reason of any medically determinable
physical or mental impairment which is expected to result in death or has lasted
or can be expected to last for a continuous period of twelve (12) months or
more.

AA.      PLAN OPTIONS shall mean Option Shares issued under the Option/Issuance
Plan or under any other such plan as may be adopted by the Corporation.

BB.      QUALIFIED DOMESTIC RELATIONS ORDER shall mean a Domestic Relations
Order that would substantially comply with the requirements of Code Section
414(p) if the Plan were subject to such section. The Compensation Committee
shall have the sole discretion to determine whether a Domestic Relations Order
is a Qualified Domestic Relations Order.

                                      A-4
<PAGE>   44
CC.      SERVICE shall mean the Optionee's performance of services for the
Corporation (or any Parent or Subsidiary) in the capacity of an Employee, a
non-employee member of the board of directors or a consultant or independent
advisor.

DD.      STOCK EXCHANGE shall mean the American Stock Exchange or the New York
Stock Exchange.

EE.      SUBSIDIARY shall mean any corporation (other than the Corporation) in
an unbroken chain of corporations beginning with the Corporation, provided each
corporation (other than the last corporation) in the unbroken chain owns, at the
time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

FF.      TAXES shall mean the Federal, state and local income and employment tax
liabilities incurred by the Optionee.

                                      A-5
<PAGE>   45
                                                 Hyperion Solutions Corporation
                                                 ID:  77-027777
HYPERION SOLUTIONS CORPORATION                   1344 Crossman Avenue
NOTICE OF GRANT OF STOCK OPTIONS                 Sunnyvale, CA  94089

                                                 OPTION NUMBER:   ____________

                                                 PLAN:            Not Applicable
                                                 ID:              ____________

Notice is hereby given of the following option grant (the "Option") to purchase
shares of the Common Stock of Hyperion Solutions Corporation (the
"Corporation").

            Optionee:                           Jeffrey R. Rodek
            Grant Date:                         October 11, 1999
            Vesting Commencement Date:          October 11, 1999
            Exercise Price:                     $19.063 per share
            Expiration Date:                    October 11, 2009
            Number of Option Shares:            600,000 Total Option Shares

                  Exercise Schedule: The Option shall become exercisable with
                  respect to (i) twenty-five percent (25%) of the Total Option
                  Shares upon Optionee's completion of one (1) year of Service
                  measured from the Vesting Commencement Date and (ii) the
                  balance of the Option Shares in successive equal monthly
                  installments upon Optionee's completion of each of the next
                  thirty-six (36) months of Service measured from and after the
                  first anniversary of the Vesting Commencement Date. In no
                  event shall the Option become exercisable for any additional
                  Option Shares after Optionee's cessation of Service.

                  Exercise Order: In each fiscal year of the Corporation that
                  the Optionee chooses to exercise this option, he shall
                  exercise this option for those Option Shares that are then
                  exercisable in conjunction with the option(s) granted to him
                  under the Option/Issuance Plan in the order of exercise
                  specified in Section 4(ii) of the Stock Option Agreement
                  between Hyperion Solutions Corporation and the Optionee dated
                  as of October 11, 1999 relating to the issuance of 600,000
                  shares (the "Agreement").

                  Optionee understands and agrees that the Option is granted
subject to and in accordance with the terms of the Agreement. Optionee further
agrees to be bound by the terms of the Agreement attached hereto as Exhibit A.

                  The Option shall be considered a Non-Statutory Stock Option
that is not intended to satisfy the provisions of Section 422(d) of the Internal
Revenue Code of 1986, as amended.

                  No Employment or Service Contract. Nothing in this Notice or
in the attached Agreement shall confer upon Optionee any right to continue in
Service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Corporation (or any Parent or Subsidiary
employing or retaining Optionee) or of Optionee, which rights are hereby
expressly reserved by each, to terminate Optionee's Service at any time for any
reason, with or without cause.

                  Definitions. All capitalized terms in this Notice shall have
the meaning assigned to them in this Notice or in the attached Stock Option
Agreement.

HYPERION SOLUTIONS CORPORATION
OPTIONEE

/s/ Jeffrey R. Rodek                                   /s/ Stephen V. Imbler
------------------------------                         -------------------------
                                                       Stephen V. Imbler
                                                       Interim President and CEO
<PAGE>   46

                                   SCHEDULE A

Alabama                                       New York
Alaska                                        North Carolina
Arizona                                       North Dakota
Arkansas                                      Ohio
California                                    Oklahoma
Colorado                                      Oregon
Connecticut                                   Pennsylvania
Delaware                                      Rhode Island
Florida                                       South Carolina
Georgia                                       South Dakota
Hawaii                                        Tennessee
Idaho                                         Texas
Illinois                                      Utah
Indiana                                       Vermont
Iowa                                          Virginia
Kansas                                        Washington
Kentucky                                      West Virginia
Louisiana                                     Wisconsin
Maine                                         Wyoming
Maryland                                      Australia
Massachusetts                                 Brazil
Michigan                                      Canada
Minnesota                                     England
Mississippi                                   France
Missouri                                      Germany
Montana                                       Hong Kong
Nebraska                                      Israel
Nevada                                        Japan
New Hampshire                                 Mexico
New Jersey                                    Netherlands
New Mexico                                    Singapore
                                              United Kingdom

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]