Loan and Security Agreement - NetScreen Technologies Inc. and Comdisco Inc.
LOAN AND SECURITY AGREEMENT
THIS AGREEMENT (the "Agreement"), dated as of October 27, 1998 is
entered into by and between NetScreen Technologies, Inc., a Delaware corporation
having a principal place of business at 2860 San Tomas Expressway, Santa Clara,
California 95051 (the "Borrower") and Comdisco, Inc., a Delaware corporation
having a principal place of business at 6111 North River Road, Rosemont,
Illinois 60018 (the "Lender"). In consideration of the mutual agreements
contained herein, the parties hereto agree as follows:
WHEREAS, Borrower desires to borrow from the Lender hereunder the
amount of Four Hundred Eighty Two Thousand Three Hundred Thirty-Four and 65/100
Dollars ($482,334.65) and Lender is willing to lend said amount to Borrower on
October 30, 1998 (the "Funding Date");
NOW, THEREFORE, it is agreed:
SECTION 1. THE LOAN
1.1 Subject to the terms and conditions set forth herein, Lender shall lend
to Borrower the aggregate original principal amount of Four Hundred Eighty Two
Thousand Three Hundred Thirty-Four and 65/100 Dollars ($482,334.65) (the "Loan")
with interest at the rate of seven and one quarter percent (7.25%) per annum
payable in monthly installments as set forth in the promissory note (the "Note")
in the form attached hereto and made a part hereof as Exhibit A, dated October
30, 1998.
1.2 Upon the occurrence of and during an Event of Default (as defined
herein), interest shall thereafter be calculated at a rate of five percent (5%)
in excess of the rate that would otherwise be applicable ("Default Rate"). All
such interest shall be due and payable in arrears, on the first day of the
following month.
1.3 Notwithstanding any provision in this Agreement, the Note, or any other
"Loan Document" (as defined herein), it is not the parties' intent to contract
for, charge or receive interest at a rate that is greater than the maximum rate
permissible by law which a court of competent jurisdiction shall deem applicable
hereto (which under the laws of the State of Illinois shall be deemed to be the
laws relating to permissible rates of interest on commercial loans) (the
"Maximum Rate"). If the Borrower actually pays Lender an amount of interest,
chargeable on the total aggregate principal Secured Obligations of Borrower
under this Agreement and the Note (as said rate is calculated over a period of
time that is the longer of (i) the time from the date of this Agreement through
the maturity time as set forth on the Note, or (ii) the entire period of time
that any principal is outstanding on the Note), which amount of interest exceeds
interest calculated at the Maximum Rate on said principal chargeable over said
period of time, then such excess interest actually paid by Borrower shall be
applied first, to the payment of principal outstanding on the Note; second,
after all principal is repaid, to the payment of Lender's out of pocket costs,
expenses, and professional fees which are owed by Borrower to Lender under this
Agreement or the Loan Documents; and third, after all principal, costs,
expenses, and professional fees owed by Borrower to Lender are repaid, the
excess (if any) shall be refunded to Borrower.
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1.4 In the event any interest is not paid when due hereunder, delinquent
interest shall be added to principal and shall bear interest on interest,
compounded at the rate set forth in Section 1.1.
1.5 Upon and during the continuation of an Event of Default hereunder (as
defined herein), all Secured Obligations, including principal, interest,
compounded interest, and reasonable professional fees, shall bear interest at a
rate per annum equal to the Default Rate.
1.6 Borrower shall have the option to prepay the Note, in whole or in part,
at any time after the date hereof by paying the principal amount together with
all accrued and unpaid interest with respect to such principal amount, as of the
date of such prepayment [and the Balloon Payment as described in the Note]
together with a prepayment premium equal to the difference, if any, between (x)
the amount being prepaid and (y) the present value, discounted at the Treasury
Rate, of each installment of principal and interest being prepaid discounted to
the date of prepayment. If the amount in (x) is greater than the amount in (y),
no prepayment premium shall be due. The "Treasury Rate" shall mean the then
prevailing yield on U S Treasury Constant Maturities for the most recent
business day, as quoted in the Federal Reserve Statistical Release H15, as of
the date of prepayment for an obligation of comparable maturity to the maturity
date of the Note.
SECTION 2. SECURITY INTEREST
As security for the payment of all indebtedness ("Indebtedness") of the
Borrower to the Lender hereunder and under the Note, as the same may be renewed,
extended for any period or rearranged, and the performance by the Borrower of
its other obligations hereunder (the Indebtedness and such other obligations
being hereinafter sometimes collectively referred to as the "Secured
Obligations"), the Borrower hereby assigns to the Lender, and grants to the
Lender a first priority security interest in, all the Borrower's right, title,
and interest in and to the following property ("Collateral"):
(i) the equipment and other property (the "Equipment") described in Exhibit B
attached hereto; and (ii) all proceeds, products, replacements, additions to,
substitutions for and accessions to any and all Equipment including, without
limitation, the proceeds applicable to the insurance referred to in Section 4
hereof.
SECTION 3. REPRESENTATIONS AND WARRANTIES OF BORROWER
The Borrower represents, warrants and agrees that:
3.1 It has good title in and to the Equipment, free of all liens, security
interests, encumbrances and claims whatsoever, except for the interest of the
Lender therein.
3.2 It has the full power and authority to, and does hereby grant and
convey to the Lender, a valid first priority perfected security interest in the
Collateral as security for the Secured Obligations, free of all liens, security
interests, encumbrances and claims, and shall execute such Uniform Commercial
Code ("UCC") financing statements in connection herewith as the Lender may
reasonably request. No other lien, security interest, adverse claim or
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encumbrance has been created by Borrower or is known by Borrower to exist with
respect to any Collateral.
3.3 It is a corporation duly organized, legally existing and in good
standing under the laws of the State of Delaware, and is duly qualified as a
foreign corporation in all jurisdictions where the failure to so qualify would
have a material adverse effect on the Collateral or the business of the Borrower
taken as a whole.
3.4 The execution, delivery and performance of the Note, this Agreement,
the Warrant Agreement dated October 27, 1998 pursuant to which Borrower granted
to Lender the right to purchase the number of shares of preferred stock as set
forth therein ("Warrant Agreement"), and all financing statements, certificates
and other documents required to be delivered or executed in connection herewith
(collectively, the "Loan Documents") have been duly authorized by all necessary
corporate action of Borrower, the individual or individuals executing the Loan
Documents were duly authorized to do so, the Equipment is personal property and
as used by the Borrower will not be or become fixtures under applicable law, and
the Loan Documents constitute legal, valid and binding obligations of the
Borrower, enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization or other similar laws
generally affecting the enforcement of the rights of creditors.
3.5 The Loan Documents do not and will not violate any provisions of its
Certificate of Incorporation, bylaws or any contract, agreement, law,
regulation, order, injunction, judgment, decree or writ to which the Borrower is
subject, or result in the creation or imposition of any lien, security interest
or other encumbrance upon the Collateral, other than those created by this
Agreement.
3.6 The execution, delivery and performance of the Loan Documents do not
require the consent or approval of any other person or entity including, without
limitation, any regulatory authority or governmental body of the United States
or any state thereof or any political subdivision of the United States or any
state thereof.
3.7 As of the date hereof no fact or condition exists that would (or could,
with the passage of time, the giving of notice, or both) constitute an Event of
Default under this Agreement or any of the Loan Documents and no event which has
had or could reasonably be expected to have a Material Adverse Effect has
occurred and is continuing. For purposes of this Agreement, "Material Adverse
Effect" means a material adverse effect upon (i) the business, operations,
properties, assets or financial condition of Borrower; or (ii) the ability of
Borrower to perform the Secured Obligations.
SECTION 4. INSURANCE AND RISK OF LOSS
4.1 Risk of loss of, damage to or destruction of the Collateral shall be
borne by the Borrower and effective from the date of this Agreement and until
the payment and performance in full of all Secured Obligations, Borrower shall
at its own expense cause to be carried and maintained all risk casualty
insurance (covering risk of fire, theft and other such risks as the Lender may
require, including standard and extended coverage) with respect to each item of
Collateral in an amount no less than the replacement costs applicable to such
item of Collateral
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during the term of this Agreement. All policies evidencing such casualty
insurance shall contain a standard mortgagee's endorsement and shall provide for
at least thirty days prior written notice by the underwriter or insurance
company to the Lender in the event of cancellation or expiration. Borrower shall
provide Lender with insurance certificates evidencing the foregoing at time of
closing.
4.2 If any item of Collateral is lost or rendered unusable as a result of
any physical damage to or destruction of such item of Equipment during the
period from the date hereof to and including the maturity date under the Note or
the date all Secured Obligations hereunder have been fully satisfied, whichever
is later, Borrower shall give to Lender prompt notice thereof. Borrower shall
determine, within fifteen (15) days after the date of occurrence of such loss,
damage or destruction, whether such item of Equipment can be repaired and
restored to the condition in which such item of Collateral was required to be
maintained as of the date immediately preceding such damage. If Borrower
determines that such item of Collateral can be repaired, Borrower, at its
expense, shall cause such item of Collateral to be promptly repaired. If
Borrower determines that such item of Collateral is lost or cannot be repaired,
Borrower shall promptly notify the Lender and such item of Collateral shall be
deemed to have suffered a "Casualty Loss" for purposes of this Section as of the
date of the occurrence of such loss. Within fifteen (15) days following the
occurrence of any such loss, damage or destruction, Borrower shall notify the
Lender of the item(s) of Collateral which has suffered such Casualty Loss ("Loss
Item"), and within thirty (30) days thereafter (the "Settlement Date"), Borrower
shall either (a) replace such item(s) of Collateral with equipment of the same
model, type and feature configuration, in an operating condition and repair no
less than that required hereunder of the damaged or lost equipment immediately
prior to the date of such damage or loss, and having a fair market value no less
than the Casualty Value (as defined herein) applicable to such item of
Collateral as of the date immediately prior to such damage, in which case such
replacement equipment shall for all purposes hereunder become part of the
Collateral and (without limiting the preceding provisions) Borrower shall grant
to Lender a first lien and security interest in respect of such replacement
equipment pursuant to the terms of this Agreement, and Borrower shall provide
the Lender evidence satisfactory to the Lender of Borrower's good and marketable
title to such replacement equipment (free of any liens, security interests or
encumbrances other than those created by this Agreement and Borrower shall be
entitled to receive the amount of any insurance or other recovery received by
Lender up to cost of obtaining the replacement equipment; or (b) so long as no
Event of Default or event which with the giving of notice or passage of time, or
both, would constitute an Event of Default, has occurred and is continuing,
Borrower may provide substitute equipment satisfactory to Lender to become part
of the Collateral and Borrower shall grant to Lender a first lien and security
interest in respect of such substitute equipment pursuant to the terms of this
Agreement, and Borrower shall provide the Lender evidence satisfactory to Lender
of Borrower's good and marketable title to such substitute equipment (free of
any liens, security interests or encumbrances other than created by this
Agreement and Lender shall provide any required endorsements in connection with
any insurance proceeds received by Borrower pursuant to such insurance policies;
or (c) Borrower shall pay Lender the insurance proceeds payable pursuant to such
insurance policies ("Insurance Proceeds") with respect to such Loss Item(s) and
the principal amount of the Note (and interest accrued on the principal amount
so prepayable) shall become due and payable on the Settlement Date to the extent
of the replacement cost for all such Loss Item(s). For purposes of this Section
4.2, Casualty Value shall mean an amount equal to the greater of the fair market
value of
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the Equipment as of the date of the Casualty Loss or the outstanding principal
and accrued interest on the Loan. Moneys so received shall be applied, on the
date of such receipt, as follows: first, to pay any accrued interest on the
outstanding principal amount of the Note on such date; second, to prepay, the
outstanding principal amount of the Note (to the extent of the fair market value
attributable to such Loss Item(s)); third, to pay any other Indebtedness of
amounts then due and owing to the Lender hereunder; and fourth, so long as there
has occurred no Event of Default under Section 8 hereof and no event which with
the giving of notice or passage of time or both would constitute an Event of
Default, has occurred and is continuing, Borrower and Lender hereby agree that
the balance of any such Insurance Proceeds shall be paid promptly to the
Borrower.
4.3 Effective upon the date hereof under the Note and while there are any
Secured Obligations outstanding, Borrower shall cause to be carried and
maintained comprehensive general liability insurance with regard to the
Collateral against risks customarily insured against in the Borrower's business.
Such risks shall include, without limitation, the risks of death, bodily injury
and property damage associated with the Collateral. All policies evidencing such
insurance shall provide for at least thirty (30) days prior written notice by
the underwriter or insurance company to the Lender in the event of cancellation
or expiration.
4.4 Borrower shall and does hereby indemnify and hold Lender, its agents
and shareholders harmless from and against any and all claims, costs, expenses,
damages and liabilities (including without limitation such claims, costs,
expenses, damages and liabilities based on liability in tort including without
limitation strict liability in tort) including reasonable attorneys' fees,
arising out of Borrower's ownership, possession, operation, control, use,
maintenance, delivery, or other disposition of the Collateral. Notwithstanding
the foregoing, Borrower shall not be responsible under the terms of this Section
4.4 to a party indemnified hereunder for any claims, costs, expenses, damages
and liabilities occasioned by the negligence or willful misconduct of such
indemnified party.
SECTION 5. COVENANTS OF BORROWER
Borrower covenants and agrees as follows at all times while any of the
Secured Obligations remain outstanding:
5.1 Borrower shall maintain the Equipment in good operating order, repair,
condition and appearance and protect the Equipment from deterioration, other
than normal wear and tear. Borrower shall not the Equipment or permit its use
for any purpose other than for which it was designed. Borrower's obligation
regarding the maintenance of the Equipment shall include, without limitation,
all maintenance, repair, refurbishment and replacement recommended or advised
either by the manufacturer, or that commonly performed by prudent business
and/or professional practice. Any exceptions or qualifications expressed in this
Agreement relating to normal or ordinary wear and tear shall not be deemed to
limit Borrower's obligations pursuant to the preceding sentence.
5.2 Borrower shall only relocate any item of the Collateral provided that:
(a) it shall have caused to be filed and/or delivered to the Lender all UCC
financing statements, certificates or other documents or instruments necessary
to continue in effect the first prior perfected security
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interest of the Lender in the Collateral, and (b) it shall have given the Lender
no less than fifteen (15) days prior written notice of such relocation.
5.3 Upon the request of Lender, Borrower shall, during business hours, make
the Equipment available to Lender for inspection at the place where it is
normally located and shall make Borrower's log and maintenance records
pertaining to the Equipment available to the Equipment available to Lender for
inspection. Borrower shall take all action necessary to maintain such logs and
maintenance records in a correct and complete fashion.
5.4 Upon the request of Lender, Borrower shall cause the Equipment to be
plainly, permanently and conspicuously marked, by stenciling or by metal tag or
plate affixed thereto, indicating Lender's security interest in the Equipment.
Borrower shall replace any such stenciling, tag or plate which may be removed or
destroyed or become illegible. Borrower shall keep all Equipment free from any
marking or labeling which might be interpreted as a claim of ownership adverse
to Borrower's.
5.5 Borrower covenants and agrees to pay when due, all taxes, fees or other
charges of any nature whatsoever (together with any related interest or
penalties) now or hereafter imposed or assessed against Borrower, Lender or the
Collateral or upon Borrower's ownership, possession, use, operation or
disposition thereof or upon Borrower's rents, receipts or earnings arising
therefrom. Borrower shall file on or before the due date therefor all personal
property tax returns in respect of the Collateral.
5.6 Borrower shall furnish to Lender the financial statements listed
hereinafter, prepared in accordance with generally accepted accounting
principles consistently applied (the "Financial Statements"):
(a) as soon as practicable (and in any event within thirty (30) days)
after the end of each month: an internally prepared income statement,
balance sheet, and cash flow statement, (including the commencement of any
material litigation by or against Borrower), each certified by Borrower's
Chief Executive or Financial Officer to be true and correct;
(b) as soon as practicable (and in any event within one hundred and
twenty (120) days) after the end of each fiscal year, audited Financial
Statements, setting forth in comparative form the corresponding figures for
the preceding fiscal year, and accompanied by any audit report and opinion
of the independent certified public accountants selected by Borrower; and
(c) promptly any additional information (including but not limited to
tax returns, income statements, balance sheets, and names of principal
creditors) as Lender reasonably believes necessary to evaluate Borrower's
continuing ability to meet financial obligations.
5.7 Notwithstanding the foregoing, after the effective date of the initial
registration statement covering a public offering of Borrower's securities, the
term "Financial Statements" shall be deemed to refer to only those statements
required by the Securities and Exchange Commission, to be provided no less
frequently than quarterly. Borrower will from time to time
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execute, deliver and file, alone or with Lender, any financing statements,
security agreements or other documents; and take all further action that may be
necessary, or that Lender may reasonably request, to confirm, perfect, preserve
and protect the security interests intended to be granted hereby, and in
addition, and for such purposes only, Borrower hereby authorizes Lender to
execute and deliver on behalf of Borrower and to file such financing statements,
security agreement and other documents without the signature of Borrower either
in Lender's name or in the name of Borrower as agent and attorney-in-fact for
Borrower.
5.8 Borrower shall protect and defend Borrower's title as well as the
interest of the Lender against all persons claiming any interest adverse to
Borrower or Lender and shall at all times keep the Collateral free and clear
from any attachment or levy, liens or encumbrances whatsoever (except any placed
thereon by Lender, or any liens arising by operation of law with respect to any
obligations not yet overdue or any other liens consented to in writing by
Lender) and shall give Lender immediate written notice thereof.
SECTION 6. CONDITIONS PRECEDENT TO LOAN
On or prior to the Funding Date, Borrower will provide to Lender the
following, in form and substance satisfactory to Lender:
6.1 Such documentation, including without limitation, a Bill of Sale, and
other documents as shall reasonably evidence Borrower's right, title and
interest in and to the Equipment;
6.2 A certified resolution or other certificate of corporate authority for
the execution and the delivery of, and the performance of all Secured
Obligations under the Loan Documents and all related documentation;
6.3 Incumbency certificate evidencing the authority and facsimile
signatures of the individuals executing the Loan Documents;
6.4 UCC financing statements as deemed appropriate by Lender to perfect its
security interest in the Collateral;
6.5 Certified copies of the certificate of incorporation of Borrower;
6.6 Certificate of good standing for Borrower from its state of
incorporation and similar certificates from all jurisdictions in which it does
business and where the failure to be qualified would have a material adverse
effect on Borrower's business; and
6.7 Insurance certificates as required by Section 4 hereof.
SECTION 7. ASSIGNMENT BY LENDER
7.1 Borrower acknowledges and understands that Lender may sell and assign
all or a part of its interest hereunder and under the Note and Loan Documents to
any person or entity (an "Assignee"). After such assignment the term Lender
shall mean such Assignee, and such Assignee shall be vested with all rights,
powers and remedies of Lender hereunder with respect
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to the interest so assigned; but with respect to any such interest not so
transferred, the Lender shall retain all rights, powers and remedies hereby
given. No such assignment by Lender shall relieve Borrower of any of its
obligations hereunder. Borrower shall acknowledge such assignment or assignments
as shall be designated by written notice given by Lender to Borrower. The Lender
agrees that in the event of any transfer by it of the Note, it will endorse
thereon a notation as to the portion of the principal of the Note which shall
have been paid at the time of such transfer and as to the date to which interest
shall have been last paid thereon.
SECTION 8. DEFAULT
The occurrence of any one or more of the following events (herein called
"Events of Default") shall constitute a default hereunder and under the Note:
8.1 The Borrower defaults in the payment of any principal or interest
payable under this Agreement, the Note or any of the other Loan Documents and
such default continues for more than five (5) days after the due date thereof;
8.2 The Borrower defaults in the payment or performance of any other
covenant or obligation of the Borrower hereunder or under the Note or any other
Loan Documents for more than ten (10) business days after the Lender has given
notice of such default to the Borrower;
8.3 Any representation or warranty made herein by the Borrower shall prove
to have been false or misleading in any material respect;
8.4 The making of an assignment by Borrower for the benefit of its
creditors or the admission by Borrower in writing of its inability to pay its
debts as they become due, or the insolvency of Borrower, or the filing by
Borrower of a voluntary petition in bankruptcy, or the adjudication of Borrower
as a bankrupt, or the filing by Borrower of any petition or answer seeking for
itself any reorganization, arrangement, composition, readjustment, liquidation,
dissolution, or similar relief under any present or future statute, law or
regulation, or the filing of any answer by Borrower admitting, or the failure by
Borrower to deny, the material allegations of a petition filed against it for
any such relief, or the seeking or consenting by Borrower to, or acquiescence by
Borrower in, the appointment of any trustee, receiver or liquidator of Borrower
or of all or any substantial part of the properties of Borrower, or the
inability of Borrower to pay its debts when due, or the commission by Borrower
of any act of bankruptcy as defined in the Federal Bankruptcy Act, as amended;
8.5 The failure by Borrower, within sixty (60) days after the commencement
of any proceeding against Borrower seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any
present or future statute, law or regulation, to obtain the dismissal of such
proceeding or, within sixty (60) days after the appointment, without the written
consent or acquiescence of Lender, of any trustee, receiver or liquidator of
Borrower or of all or any substantial part of the properties of Borrower, to
vacate such appointment; or
8.6 The default by Borrower under any (i) other notes, (ii) other agreement
for borrowed money, (iii) equipment lease, or (iv) other agreement, made between
Borrower and Lender.
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SECTION 9. REMEDIES
Upon the occurrence hereof of any one or more Events of Default, Lender, at
its option, may declare the Note to be accelerated and immediately due and
payable, (provided, that upon the occurrence of an Event of Default of the type
described in 8.4 or 8.5, the Note and all other Secured Obligations shall
automatically be accelerated and made due and payable without any further act)
whereupon the unpaid principal of and accrued interest on such Note shall become
immediately due and payable, and shall thereafter bear interest at the Default
Rate and calculated in accordance with Section 1.2. Lender may exercise all
rights and remedies with respect to the Collateral granted pursuant hereto for
such Note, or otherwise available to it under applicable law, including the
right to release, hold or otherwise dispose of all or any part of the Collateral
and the right to utilize, process and commingle the Collateral.
Upon the happening and during the continuance of any Event of Default,
Lender may then, or at any time thereafter and from time to time, apply,
collect, sell in one or more sales, lease or otherwise dispose of, any or all of
the Collateral, in its then condition or following any commercially reasonably
preparation or processing, in such order as Lender may elect, and any such sale
may be made either at public or private sale at its place of business or
elsewhere.
Borrower agrees that any such public or private sale may occur upon five
(5) calendar day's notice to Borrower. Lender may require Borrower to assemble
the Collateral and make it available to Lender at a place designated by Lender
which is reasonably convenient to Lender and Borrower. The proceeds of any sale,
disposition or other realization upon all or any part of the collateral shall be
distributed by Lender in the following order of priorities:
First, to Lender in an amount sufficient to pay in full Lender's reasonable
costs and professionals' and advisors' fees and expenses;
Second, to Lender in an amount equal to the then unpaid amount of the
Secured Obligations in such order and priority as Lender may choose in its sole
discretion; and
Finally, upon payment in full of all of the Secured Obligations, to
Borrower or its representatives or as a court of competent jurisdiction may
direct.
The Lender shall return to the Borrower any surplus Collateral remaining after
payment of all Secured Obligations.
SECTION 10. MISCELLANEOUS
10.1 Borrower shall remain liable to Lender for any unpaid Secured
Obligations, advances, costs, charges and expenses, together with interest
thereon and shall pay the same immediately to Lender at Lender's offices.
10.2 The powers conferred upon Lender by this Agreement are solely to
protect its interest in the Collateral and shall not impose any duty upon Lender
to exercise any such powers.
10.3 This is a continuing Agreement and the grant of a security interest
hereunder shall remain in full force and effect and all the rights, powers and
remedies of Lender hereunder shall
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continue to exist until the Secured Obligations are paid in full as the same
become due and payable. When Borrower has paid in full all Secured Obligations,
Lender will, promptly upon request of Borrower, execute a written termination
statement, reassigning to Borrower, without recourse, the Collateral and all
rights conveyed hereby and return possession (if Lender has possession) of the
Collateral to Borrower. The rights, powers and remedies of Lender hereunder
shall be in addition to all rights, powers and remedies given by statute or rule
of law and are cumulative. The exercise of any one or more of the rights, powers
and remedies provided herein shall not be construed as a waiver of any other
rights, powers and remedies of Lender. Furthermore, regardless of whether or not
the UCC is in effect in the jurisdiction where such rights, powers and remedies
are asserted, Lender shall have the rights, powers and remedies of a secured
party under the U CC.
10.4 Upon payment in full of all Secured Obligations, the Lender shall
cancel the Note, this Agreement and all UCC financing statements, if any, and
shall promptly deliver all such canceled documents to the Borrower.
10.5 GOVERNING LAW. This Agreement, the Note and the other Loan Documents
have been negotiated and delivered to Lender in the State of Illinois and shall
not become effective until accepted by Lender in the State of Illinois. Payment
to Lender by Borrower of the Secured Obligations is due in the State of
Illinois. This Agreement shall be governed by, and construed and enforced in
accordance with the laws of the State of Illinois excluding conflict of laws
principles that would cause the application of laws of any other jurisdiction.
10.6 CONSENT TO JURISDICTION AND VENUE. All judicial proceedings arising in
or under or related to this Agreement, the Note or any of the other Loan
Documents may be brought in any state or federal court of competent jurisdiction
located in the State of Illinois. By execution and delivery of this Agreement,
each party hereto generally and unconditionally: (a) consents to personal
jurisdiction in Cook County, State of Illinois; (b) waives any objection as to
jurisdiction or venue in the aforesaid courts; and (d) irrevocably agrees to be
bound by any judgment rendered thereby in connection with this Agreement, the
Note and the other Loan Documents. Service of process on any party hereto in any
action arising out of or relating to this Agreement shall be effective if given
in accordance with the requirements for notice set forth in Section 10.8 below
and shall be deemed effective and received as set forth in Section 10.8 below.
Nothing herein shall affect the right to serve process in any other manner
permitted bylaw or shall limit the right of either party to bring proceedings in
the courts of any other jurisdiction.
10.7 Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be prohibited by or invalid under
such law, such provision shall be ineffective only to the extent and duration of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.
10.8 Any notice required or given hereunder shall be deemed properly given
upon the earlier of: (i) the first business day after transmission by facsimile
or hand delivery or deposit with an overnight express service or overnight mail
delivery service; or (ii) or three (3) days after mailed, postage prepaid, in
each case, addressed to the designated recipient at its address set
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forth herein or such other address as such party may advise the other party by
notice given in accordance with this provision.
10.9 Lender and Borrower acknowledge that there are no agreements or
understandings, written or oral, between Lender and Borrower with respect to the
Loan, other than as set forth herein, in the Note and the other Loan Documents
and that this Agreement, the Note and the other Loan Documents contain the
entire agreement between Lender and Borrower with respect thereto. None of the
terms of this Agreement, the Note and the other Loan Documents may be amended
except by an instrument executed by each of the parties hereto.
10.10 No omission, or delay, by Lender at any time to enforce any right or
remedy reserved to it, or to require performance of any of the terms, covenants
or provisions hereof by Borrower at any time designated, shall be a waiver of
any such right or remedy to which Lender is entitled, nor shall it in any way
affect the right of Lender to enforce such provisions thereafter.
10.11 All agreements, representations and warranties contained in this
Agreement or the Note, or in any Loan Documents delivered pursuant hereto or in
connection herewith shall be for the benefit of Lender and any Assignee and
shall survive the execution and delivery of this Agreement or the Note and the
expiration or other termination of this Agreement or the Note.
10.12 This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument.
10.13 This Agreement shall be binding upon, and shall inure to the benefit
of, Borrower and its permitted assigns (if any). Borrower shall not assign its
obligations under this Agreement, the Note or any of the other Loan Documents
without Lender's express written consent and any such attempted assignment shall
be void and of no effect. Any assignment by Borrower in connection with a
"Merger" (as defined below) shall be subject to Lender's prior consent. Any
consent granted by Lender shall be conditioned upon such surviving entity or
transferee assuming Borrower's Secured Obligations hereunder pursuant to
assignment documents reasonably acceptable to Lender. If Lender reasonably
withholds its consent to such assignment in connection with a Merger, the
outstanding principal and accrued and unpaid interest shall be prepaid in whole.
For purposes of this Agreement, a "Merger" shall mean any consolidation or
merger of the Borrower with or into any other corporation or entity, any sale or
conveyance of an or substantially all of the assets or stock of the Borrower by
or to any other person or entity in which Borrower is not the surviving entity.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
11
<PAGE>
IN WITNESS WHEREOF, the Borrower and the Lender have duly executed and
delivered this Agreement as of the day and year first above written.
BORROWER: NETSCREEN TECHNOLOGIES, INC.
By: /s/ Brian Kerr
---------------------------------
Title: Director of Finance
Date: October 28, 1998
ACCEPTED IN ROSEMONT, ILLINOIS:
LENDER: COMDISCO, INC.
By: /s/ Jill C. Hanses
---------------------------------
Title: Vice President
Date: October 28, 1998
12
<PAGE>
Exhibit A
SECURED PROMISSORY NOTE
$482,334.65 Date: October 30, 1998
Due: May 1, 2002
FOR VALUE RECEIVED, NetScreen Technologies, Inc., a Delaware corporation (the
"Borrower") hereby promises to pay to the order of Comdisco, Inc., a Delaware
corporation (the "Lender") at P.O. Box 91744, Chicago, IL 60693 or such other
place of payment as the holder of this Secured Promissory Note (this "Note") may
specify from time to time in writing, in lawful money of the United States of
America, the principal amount of Four Hundred Eighty Two Thousand Three Hundred
Thirty-four and 65/100 Dollars ($482,334.65) together with interest at seven
and one-quarter percent (7.25%) per annum from the date of this Note to maturity
of each installment on the principal hereof remaining from time to time unpaid,
such principal and interest to be paid in 42 equal monthly installments of
$13,039.85 each, commencing December 1, 1998 and on the same day of each month
thereafter to and including May 1, 2002 and an additional installment in the
amount of $72,350.20 ("Balloon Payment") to be paid on May 1, 2002, such
installments to be applied first to accrued and unpaid interest and the balance
to unpaid principal. Interest shall be computed on the basis of a year
consisting of twelve months of thirty days each.
This Note is the Note referred to in, and is executed and delivered in
connection with, that certain Loan and Security Agreement dated as of October
27, 1998 by and between Borrower and Lender (as the same may from time to time
be amended, modified or supplemented in accordance with its terms, the "Loan
Agreement"), and is entitled to the benefit and security of the Loan Agreement
and the other Loan Documents (as defined in the Loan Agreement), to which
reference is made for a statement of all of the terms and conditions thereof.
All terms defined in the Loan Agreement shall have the same definitions when
used herein, unless otherwise defined herein.
The Borrower waives presentment and demand for payment, notice of dishonor,
protest and notice of protest and any other notice as permitted under the UCC or
any applicable law.
This Note has been negotiated and delivered to Lender and is payable in the
State of Illinois, and shall not become effective until accepted by Lender in
the State of Illinois. This Note shall be governed by and construed and enforced
in accordance with, the laws of the State of Illinois, excluding any conflicts
of law rules or principles that would cause the application of the laws of any
other jurisdiction.
BORROWER: NETSCREEN TECHNOLOGIES, INC.
2860 San Tomas Expressway
Santa Clara, CA 95051
Signature: /s/ Brian Kerr
--------------------------
Print Name: Brian Kerr
Title: Director of Finance
1
<PAGE>
<TABLE>
<CAPTION>
NetScreen Technologies, Inc. EXHIBIT B
PLB LOAN ASSETS
------------------------------------------------------------------------------------------------------------------------------------
Purchase
Item # Date Vendor Description Invoice # Serial #
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Computers
1 11/25/97 Fine Tec Pentium II 233MHz 32MB, 4.3 GB System w/17" monitor 577699 64484/CN7C71029
2 12/4/97 Fine Tec Pentium 200 MHZ MMX, 32MB, 4.3GB, w/17" monitor 577791 91774/675H7B031
3 12/8/97 Fine-Tec Pentium 200 MHZ MMX, 32MB, 4.3GB 577826 64528-529
3 12/8/97 Fine-Tec Acer 17" monitor 577826 775H7B031/78OH7B031
4 12/8/97 Fine-Tec Pentium II 233 MHz System, 32MB, 4.3 GB, w/17" monitor 577826 64530/7643155H76491H
5 12/16/97 Fine-Tec Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor 577916 64566/A21249727016208
6 12/19/97 Fine-Tec Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor 577987 64627/A21249741054646
7 12/19/97 Fine-Tec Pentium 150MHz PCI System w/accessories, 16MB, 2.1GB 577987 64628/TL72667313
17" monitor
8 12/22/97 EGIS Sun Spark System 32M/2 1G/15" color/turbo 3 004F1532
9 12/23/97 Fine-Tec Pentium 200 MHZ MMX 578002 064833-634
9 12/23/97 Fine-Tec Viewsonic 17" monitor 578002 JL73483362/943
10 1/6/98 Fine-Tec Pentium 150 MHZ PCI System 32mb, 2.1 gb 578047 064661-682
10 1/6/98 Fine-Tec Acer 17" monitor 578047 80347697H78031
11 1/19/98 Fine-Tec Pentium 200 MHZ MMX NT System 32MB, 4.3GB/W 17" MON 578184 64681
12 1/19/98 Fine-Tec Pentium 200 MHZ MMX WIN 95 System 32MB, 4.3GB/W 17" MON 578184 64682
14 2/4/98 Keep it Simple ASUS PCI/ISA 512K IDE/10 Motherboard 29622 SN
15 2/4/98 Keep it Simple ASUS PCI/ISA 512K IDE/10 Motherboard 29623 WT3510667013
16 2/6/98 Fine-Tec Pentium II 266 MHz System 32mb, 4.3gb w/20" MON 578409 64719/774700183
17 2/14/98 Acclaim Technolo Ultra5 270 MHz 4.3 GB 128MB w/solaris 2.5 media 78190 FW80100112
18 2/27/98 Fine-Tec Pentium 200 MHz MMX Complete System 16MB/ 3.2 GB 578639 064780-783
18 2/27/98 Fine-Tec Acer 17" monitor 578639 751539H76491/CN7C71757
18 2/27/98 Fine-Tec Acer 17" monitor 578639 80347657H7B031/93834122H78031
19 2/27/98 Fine-Tec Pentium 200 MHZ MMX Complete Server 16MB, 3.2GB 578639 064784
20 3/6/98 Fine-Tec Pentium 133 MHz PCI System 578747 064806-809
20 3/6/98 Fine-Tec 14" KFC Smile Monitor 578747 CN7C71305/MY7533250
21 3/6/98 Software Dev. Sys Monitor Debugger for Power PC 20222 42000
22 3/9/98 Fine-Tec Pentium 200 MHz MMX Complete System, 32MB, 3.1 GB w/17" 578759 64812/34713031
monitor
23 3/9/98 Acclaim Technolo Ultra5 270 MHz 4.3 GB 128MB W/solaris 2.5 media. w/17" 76801 FW80703211/9748KC0273
monitor
24 3/19/98 Keep It Simple HP Surestore 500DE 4GB Int Dat Drive 30380 GB00120918
25 3/24/98 Fine-Tec Pentium 200 MHZ MMX Complete System 578918 064843-846
25 3/24/98 Fine-Tec 14" kfc Smile Monitor 578918 NKU7C67045/68132/67844/67964
26 4/23/98 Fine-Tec System Intel Pentium 233MHz MMX w/14" monitor 579149 064965-966
26 4/23/98 Fine-Tec 14" KFC Monitor 579149 NKU7778984/06698
27 4/23/98 Fine-Tec System Intel Pentium II 300MHz 579149 064967-968
28 4/29/98 Fine-Tec System Intel Pentium 233MHz MMX 579203 064974-977
28 4/29/98 Fine-Tec 17" KFC MONITOR 579203 NKU7A64026/7A64036/7C71305/
7C71680
29 5/4/98 Fine-Tec System Intel Pentium II 233MHz W/17" monitor and drive 579241 064997/JX80523799
30 5/6/98 Dell Computer Dell Dimension XPS R400MHz Pentium II Base, 256 MB. 4GB 158322255 F2BOV/B8306774
w/17" monitor
31 5/19/98 Fine-Tec System Intel Pentium 200MHz MMX w/14" monitor 579370 065060-061/NKU7071736/434
32 5/21/98 Fine-Tec System Intel Pentium 75MHz w/14" monitor and APC 579378 065092/FB9727018978NKU7B82062
33 5/26/98 Fine-Tec System Intel Pentium 233MHz MMX w/14" monitor 579404 065100-101/NKU7C71076/71031
34 6/3/98 Fine-Tec System Intel Pentium 75 MHz 579461 65162
35 6/3/98 Fine-Tec System Intel Pentium 200MHz MMX 579461 65161
36 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/monitor 579467 065168-169/NKU7C71027/71029
36/A 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX 579467 165170
38 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/14" SVGA Monitor, MS 579489 065172/NKU7C1037
Win 95 on C
39 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/Acer 15" SVGA Monitor, 579489 065173/P5N421
MSNT 4.0
40 6/17/98 Fine-Tec System Intel Pentium II 266MHz w/Viewsonic G771, 17" 579531 065214/KX8O228366
Monitor
41 6/23/98 Fine-Tec System Intel Pentium II 300MHz w/Acer SVGA Monitor 579582 065290-91/BP5N421/3P5N421
42 6/23/98 Fine-Tec System Intel Pentium II 233MHz MMX w/Acer 15" SVGA 579582 065292-293/BP5N421/1425P5N421
Monitor
43 6/23/98 Fine-Tec System Intel Pentium 233MHz MMX w/Viewsonic 17" SVGA 579582 065294/KX8O638573
Monitor
44 6/25/98 Fine-Tec System Intel Pentium 233MHz MMX w/17" monitor, sound 579681 065317/KX76125913
card and mouse
45 6/27/98 Fine-Tec System Intel Pentium II 300MHz w/17" & 15" monitor and 579430 0651493X80726596/1053PSN421
accessories
47 7/2/98 Fine-Tec System Intel Pentium 200MHz MMX w/15" monitor, speakers 579618 065323/MSEH71673885
and sound card
48 7/6/98 CAT Technology U80 entire system/monitor H12382 5826F3F18/S9805KH2620
49 7/7/98 Fine-Tec System Intel Pentium II 300 MHz, 128MB, 3.2 GB W/17" mon 579636 065327/kx80638366
50 7/16/98 Fine-Tec System Intel Pentium II 300 MHz 579691 65382
51 7/27/98 Fine-Tec System Intel Pentium II 300 MHz w/KFC 14" SVGA Monitor 579747 065413-415/nku7c71431/7c71601
/7c71758
52 Intentionally left blank
53 7/31/98 Web Zone HP Vectra VL7 P33 MHZ 101566 US82614928/15621/14988/14969
54 7/31/98 Web Zone HP Vectra VL7 P33 MHZ 101566 US82614874/US82615567
55 7/31/98 Keep It Simple Toshiba Tecra 550 CDT Notebook w/accessories 32289 S68027617/03801268
55 7/31/98 Keep It Simple Toshiba Tecra 550 CDT Notebook w/accessories 32290 S68026778/03301273/JV82000794
57 8/12/98 Fine Tec Toshiba Tecra 550 CDT Laptop Computer w/accessories 579857 88029480
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Purchase CDO Financed
Item # Date Vendor Description Asset Tag Quantity Amount
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Computers
1 11/25/97 Fine Tec Pentium II 233MHz 32MB, 4.3 GB System w/17" monitor 1,910.00
2 12/4/97 Fine Tec Pentium 200 MHZ MMX, 32MB, 4.3GB, w/17" monitor 1 1,600.00
3 12/8/97 Fine-Tec Pentium 200 MHZ MMX, 32MB, 4.3GB 2 2,200.00
3 12/8/97 Fine-Tec Acer 17" monitor 2 1,000.00
4 12/8/97 Fine-Tec Pentium II 233 MHz System, 32MB, 4.3 GB, w/17" monitor 1 1,975.00
5 12/16/97 Fine-Tec Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor 1 1,085.00
6 12/19/97 Fine-Tec Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor 1 980.00
7 12/19/97 Fine-Tec Pentium 150MHz PCI System w/accessories, 16MB, 2.1GB 1 1,410.00
17" monitor
8 12/22/97 EGIS Sun Spark System 32M/2 1G/15" color/turbo 1 3,971.00
9 12/23/97 Fine-Tec Pentium 200 MHZ MMX 2 2,200.00
9 12/23/97 Fine-Tec Viewsonic 17" monitor 2 1,000.00
10 1/6/98 Fine-Tec Pentium 150 MHZ PCI System 32mb, 2.1 gb 2 2,660.00
10 1/6/98 Fine-Tec Acer 17" monitor 2 0.00
11 1/19/98 Fine-Tec Pentium 200 MHZ MMX NT System 32MB, 4.3GB/W 17" MON 146135 1 1,670.00
12 1/19/98 Fine-Tec Pentium 200 MHZ MMX WIN 95 System 32MB, 4.3GB/W 17" MON 146136 1 1,645.00
14 2/4/98 Keep it Simple ASUS PCI/ISA 512K IDE/10 Motherboard 146137 1 1,425.00
15 2/4/98 Keep it Simple ASUS PCI/ISA 512K IDE/10 Motherboard 1 1,300.00
16 2/6/98 Fine-Tec Pentium II 266 MHz System 32mb, 4.3gb w/20" MON 1 2,520.00
17 2/14/98 Acclaim Technolo Ultra5 270 MHz 4.3 GB 128MB w/solaris 2.5 media 1 4,200.25
18 2/27/98 Fine-Tec Pentium 200 MHz MMX Complete System 16MB/ 3.2 GB 4 5,600.00
18 2/27/98 Fine-Tec Acer 17" monitor 2 0.00
18 2/27/98 Fine-Tec Acer 17" monitor 2 0.00
19 2/27/98 Fine-Tec Pentium 200 MHZ MMX Complete Server 16MB, 3.2GB 1 1,795.00
20 3/6/98 Fine-Tec Pentium 133 MHz PCI System 4 3,400.00
20 3/6/98 Fine-Tec 14" KFC Smile Monitor 4 0.00
21 3/6/98 Software Dev. Sys Monitor Debugger for Power PC 1 3,960.00
22 3/9/98 Fine-Tec Pentium 200 MHz MMX Complete System, 32MB, 3.1 GB w/17" 1 1,400.00
monitor
23 3/9/98 Acclaim Technolo Ultra5 270 MHz 4.3 GB 128MB W/solaris 2.5 media. w/17" 1 4,200.25
monitor
24 3/19/98 Keep It Simple HP Surestore 500DE 4GB Int Dat Drive 1 995.00
25 3/24/98 Fine-Tec Pentium 200 MHZ MMX Complete System 4 3,940.00
25 3/24/98 Fine-Tec 14" kfc Smile Monitor 4 0.00
26 4/23/98 Fine-Tec System Intel Pentium 233MHz MMX w/14" monitor 2 1,970.00
26 4/23/98 Fine-Tec 14" KFC Monitor 2 0.00
27 4/23/98 Fine-Tec System Intel Pentium II 300MHz 2 2,290.00
28 4/29/98 Fine-Tec System Intel Pentium 233MHz MMX 4 4,100.00
28 4/29/98 Fine-Tec 17" KFC MONITOR 4 0.00
29 5/4/98 Fine-Tec System Intel Pentium II 233MHz W/17" monitor and drive 1 1,525.00
30 5/6/98 Dell Computer Dell Dimension XPS R400MHz Pentium II Base, 256 MB. 4GB 1 3,752.00
w/17" monitor
31 5/19/98 Fine-Tec System Intel Pentium 200MHz MMX w/14" monitor 2 1,950.00
32 5/21/98 Fine-Tec System Intel Pentium 75MHz w/14" monitor and APC 1 970.00
33 5/26/98 Fine-Tec System Intel Pentium 233MHz MMX w/14" monitor 2 2,030.00
34 6/3/98 Fine-Tec System Intel Pentium 75 MHz 1 620.00
35 6/3/98 Fine-Tec System Intel Pentium 200MHz MMX 1 900.00
36 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/monitor 2 1,930.00
36/A 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX 1 800.00
38 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/14" SVGA Monitor, MS 1 1,060.00
Win 95 on C
39 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/Acer 15" SVGA Monitor, 1 1,190.00
MSNT 4.0
40 6/17/98 Fine-Tec System Intel Pentium II 266MHz w/Viewsonic G771, 17" 1 1,580.00
Monitor
41 6/23/98 Fine-Tec System Intel Pentium II 300MHz w/Acer SVGA Monitor 2 2,870.00
42 6/23/98 Fine-Tec System Intel Pentium II 233MHz MMX w/Acer 15" SVGA 2 2,240.00
Monitor
43 6/23/98 Fine-Tec System Intel Pentium 233MHz MMX w/Viewsonic 17" SVGA 1 1,355.00
Monitor
44 6/25/98 Fine-Tec System Intel Pentium 233MHz MMX w/17" monitor, sound 1 1,322.00
card and mouse
45 6/27/98 Fine-Tec System Intel Pentium II 300MHz w/17" & 15" monitor and 1 2,079.00
accessories
47 7/2/98 Fine-Tec System Intel Pentium 200MHz MMX w/15" monitor, speakers 1 1,080.00
and sound card
48 7/6/98 CAT Technology U80 entire system/monitor 1 13,383.25
49 7/7/98 Fine-Tec System Intel Pentium II 300 MHz, 128MB, 3.2 GB W/17" mon 1 1,670.00
50 7/16/98 Fine-Tec System Intel Pentium II 300 MHz 1 1,260.00
51 7/27/98 Fine-Tec System Intel Pentium II 300 MHz w/KFC 14" SVGA Monitor 3 3,300.00
52 Intentionally left blank
53 7/31/98 Web Zone HP Vectra VL7 P33 MHZ 4 7,892.00
54 7/31/98 Web Zone HP Vectra VL7 P33 MHZ 2 4,146.00
55 7/31/98 Keep It Simple Toshiba Tecra 550 CDT Notebook w/accessories 1 4,850.00
56 7/31/98 Keep It Simple Toshiba Tecra 550 CDT Notebook w/accessories 1 5,245.00
57 8/12/98 Fine Tec Toshiba Tecra 550 CDT Laptop Computer w/accessories 1 4,055.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Purchase Unit
Item # Date Vendor Description Price Subtotal
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Computers
1 11/25/97 Fine Tec Pentium II 233MHz 32MB, 4.3 GB System w/17" monitor 1,910.00 1,910.00
2 12/4/97 Fine Tec Pentium 200 MHZ MMX, 32MB, 4.3GB, w/17" monitor 1,600.00 1,600.00
3 12/8/97 Fine-Tec Pentium 200 MHZ MMX, 32MB, 4.3GB 1,100.00 2,200.00
3 12/8/97 Fine-Tec Acer 17" monitor 500.00 1,000.00
4 12/8/97 Fine-Tec Pentium II 233 MHz System, 32MB, 4.3 GB, w/17" monitor 1,975.00 1,975.00
5 12/16/97 Fine-Tec Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor 1,085.00 1,085.00
6 12/19/97 Fine-Tec Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor 980.00 980.00
7 12/19/97 Fine-Tec Pentium 150MHz PCI System w/accessories, 16MB, 2.1GB 1,410.00 1,410.00
17" monitor
8 12/22/97 EGIS Sun Spark System 32M/2 1G/15" color/turbo 3,971.00 3,971.00
9 12/23/97 Fine-Tec Pentium 200 MHZ MMX 1,100.00 2,200.00
9 12/23/97 Fine-Tec Viewsonic 17" monitor 500.00 1,000.00
10 1/6/98 Fine-Tec Pentium 150 MHZ PCI System 32mb, 2.1 gb 1,300.00 2,660.00
10 1/6/98 Fine-Tec Acer 17" monitor 0.00 0.00
11 1/19/98 Fine-Tec Pentium 200 MHZ MMX NT System 32MB, 4.3GB/W 17" MON 1,670.00 1,670.00
12 1/19/98 Fine-Tec Pentium 200 MHZ MMX WIN 95 System 32MB, 4.3GB/W 17" MON 1,645.00 1,645.00
14 2/4/98 Keep it Simple ASUS PCI/ISA 512K IDE/10 Motherboard 1,425.00 1,425.00
15 2/4/98 Keep it Simple ASUS PCI/ISA 512K IDE/10 Motherboard 1,300.00 1,300.00
16 2/6/98 Fine-Tec Pentium II 266 MHz System 32mb, 4.3gb w/20" MON 2,520.00 2,520.00
17 2/14/98 Acclaim Technolo Ultra5 270 MHz 4.3 GB 128MB w/solaris 2.5 media 4,200.25 4,200.25
18 2/27/98 Fine-Tec Pentium 200 MHz MMX Complete System 16MB/ 3.2 GB 1,400.00 5.600.00
18 2/27/98 Fine-Tec Acer 17" monitor 0.00 0.00
18 2/27/98 Fine-Tec Acer 17" monitor 0.00 0.00
19 2/27/98 Fine-Tec Pentium 200 MHZ MMX Complete Server 16MB, 3.2GB 1,795.00 1,795.00
20 3/6/98 Fine-Tec Pentium 133 MHz PCI System 850.00 3,400.00
20 3/6/98 Fine-Tec 14" KFC Smile Monitor 0.00 0.00
21 3/6/98 Software Dev. Sys Monitor Debugger for Power PC 3,960.00 3,960.00
22 3/9/98 Fine-Tec Pentium 200 MHz MMX Complete System, 32MB, 3.1 GB w/17" 1,400.00 1,400.00
monitor
23 3/9/98 Acclaim Technolo Ultra5 270 MHz 4.3 GB 128MB W/solaris 2.5 media. w/17" 4,200.25 4,200.25
monitor
24 3/19/98 Keep It Simple HP Surestore 500DE 4GB Int Dat Drive 995.00 995.00
25 3/24/98 Fine-Tec Pentium 200 MHZ MMX Complete System 985.00 3,940.00
25 3/24/98 Fine-Tec 14" kfc Smile Monitor 0.00 0.00
26 4/23/98 Fine-Tec System Intel Pentium 233MHz MMX w/14" monitor 985.00 1,970.00
26 4/23/98 Fine-Tec 14" KFC Monitor 0.00 0.00
27 4/23/98 Fine-Tec System Intel Pentium II 300MHz 1,145.00 2,290.00
28 4/29/98 Fine-Tec System Intel Pentium 233MHz MMX 1,025.00 4,100.00
28 4/29/98 Fine-Tec 17" KFC MONITOR 0.00 0.00
29 5/4/98 Fine-Tec System Intel Pentium II 233MHz W/17" monitor and drive 1,525.00 1,525.00
30 5/6/98 Dell Computer Dell Dimension XPS R400MHz Pentium II Base, 256 MB. 4GB 3,752.00 3,752.00
w/17" monitor
31 5/19/98 Fine-Tec System Intel Pentium 200MHz MMX w/14" monitor 975.00 1,950.00
32 5/21/98 Fine-Tec System Intel Pentium 75MHz w/14" monitor and APC 970.00 970.00
33 5/26/98 Fine-Tec System Intel Pentium 233MHz MMX w/14" monitor 1,015.00 2,030.00
34 6/3/98 Fine-Tec System Intel Pentium 75 MHz 620.00 620.00
35 6/3/98 Fine-Tec System Intel Pentium 200MHz MMX 900.00 900.00
36 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/monitor 965.00 1,930.00
36/A 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX 800.00 800.00
38 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/14" SVGA Monitor, MS 1,060.00 1,060.00
Win 95 on C
39 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/Acer 15" SVGA Monitor, 1,190.00 1,190.00
MSNT 4.0
40 6/17/98 Fine-Tec System Intel Pentium II 266MHz w/Viewsonic G771, 17" 1,580.00 1,580.00
Monitor
41 6/23/98 Fine-Tec System Intel Pentium II 300MHz w/Acer SVGA Monitor 1,435.00 2,870.00
42 6/23/98 Fine-Tec System Intel Pentium II 233MHz MMX w/Acer 15" SVGA 1,120.00 2,240.00
Monitor
43 6/23/98 Fine-Tec System Intel Pentium 233MHz MMX w/Viewsonic 17" SVGA 1,355.00 1,355.00
Monitor
44 6/25/98 Fine-Tec System Intel Pentium 233MHz MMX w/17" monitor, sound 1,322.00 1,322.00
card and mouse
45 6/27/98 Fine-Tec System Intel Pentium II 300MHz w/17" & 15" monitor and 2,079.00 2,079.00
accessories
47 7/2/98 Fine-Tec System Intel Pentium 200MHz MMX w/15" monitor, speakers 1,080.00 1,080.00
and sound card
48 7/6/98 CAT Technology U80 entire system/monitor 13,383.25 13,383.25
49 7/7/98 Fine-Tec System Intel Pentium II 300 MHz, 128MB, 3.2 GB W/17" mon 1,670.00 1,670.00
50 7/16/98 Fine-Tec System Intel Pentium II 300 MHz 1,260.00 1,260.00
51 7/27/98 Fine-Tec System Intel Pentium II 300 MHz w/KFC 14" SVGA Monitor 1,100.00 3,300.00
52 Intentionally left blank
53 7/31/98 Web Zone HP Vectra VL7 P33 MHZ 1,973.00 7,892.00
54 7/31/98 Web Zone HP Vectra VL7 P33 MHZ 2,073.00 4,148.00
55 7/31/98 Keep It Simple Toshiba Tecra 550 CDT Notebook w/accessories 4,850.00 4,850.00
56 7/31/98 Keep It Simple Toshiba Tecra 550 CDT Notebook w/accessories 5,245.00 5,245.00
57 8/12/98 Fine Tec Toshiba Tecra 550 CDT Laptop Computer w/accessories 4,055.00 4,055.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Purchase Freight, Tax Invoice
Item # Date Vendor Description Instal & othe Total
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Computers
1 11/25/97 Fine Tec Pentium II 233MHz 32MB, 4.3 GB System w/17" monitor 157.58 2,067.58
2 12/4/97 Fine Tec Pentium 200 MHZ MMX, 32MB, 4.3GB, w/17" monitor 132.00 1,732.00
3 12/8/97 Fine-Tec Pentium 200 MHZ MMX, 32MB, 4.3GB 264.00 2,484.00
3 12/8/97 Fine-Tec Acer 17" monitor 1,000.00
4 12/8/97 Fine-Tec Pentium II 233 MHz System, 32MB, 4.3 GB, w/17" monitor 162.94 2,137.94
5 12/16/97 Fine-Tec Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor 89.51 1,174.51
6 12/19/97 Fine-Tec Pentium 150MHz PCI System, 16MB, 2.1GB HD, w/14" monitor 80.85 1,060.85
7 12/19/97 Fine-Tec Pentium 150MHz PCI System w/accessories, 16MB, 2.1GB 116.33 1,526.33
17" monitor
8 12/22/97 EGIS Sun Spark System 32M/2 1G/15" color/turbo 327.61 4,298.61
9 12/23/97 Fine-Tec Pentium 200 MHZ MMX 264.00 2,464.00
9 12/23/97 Fine-Tec Viewsonic 17" monitor 1,000.00
10 1/6/98 Fine-Tec Pentium 150 MHZ PCI System 32mb, 2.1 gb 219.45 2,879.45
10 1/6/98 Fine-Tec Acer 17" monitor 0.00 0.00
11 1/19/98 Fine-Tec Pentium 200 MHZ MMX NT System 32MB, 4.3GB/W 17" MON 137.78 1,807.78
12 1/19/98 Fine-Tec Pentium 200 MHZ MMX WIN 95 System 32MB, 4.3GB/W 17" MON 135.71 1,780.71
14 2/4/98 Keep it Simple ASUS PCI/ISA 512K IDE/10 Motherboard 137.57 1,562.57
15 2/4/98 Keep it Simple ASUS PCI/ISA 512K IDE/10 Motherboard 127.25 1,427.25
16 2/6/98 Fine-Tec Pentium II 266 MHz System 32mb, 4.3gb w/20" MON 207.90 2,727.90
17 2/14/98 Acclaim Technolo Ultra5 270 MHz 4.3 GB 128MB w/solaris 2.5 media 369.20 4,569.45
18 2/27/98 Fine-Tec Pentium 200 MHz MMX Complete System 16MB/ 3.2 GB 462.00 6,062.00
18 2/27/98 Fine-Tec Acer 17" monitor 0.00 0.00
18 2/27/98 Fine-Tec Acer 17" monitor 0.00 0.00
19 2/27/98 Fine-Tec Pentium 200 MHZ MMX Complete Server 16MB, 3.2GB 148.08 1,943.08
20 3/6/98 Fine-Tec Pentium 133 MHz PCI System 280.50 3,680.50
20 3/6/98 Fine-Tec 14" KFC Smile Monitor 0.00 0.00
21 3/6/98 Software Dev. Sys Monitor Debugger for Power PC 331.80 4,291.80
22 3/9/98 Fine-Tec Pentium 200 MHz MMX Complete System, 32MB, 3.1 GB w/17" 115.50 1,515.50
monitor
23 3/9/98 Acclaim Technolo Ultra5 270 MHz 4.3 GB 128MB W/solaris 2.5 media. w/17" 382.92 4,583.17
monitor
24 3/19/98 Keep It Simple HP Surestore 500DE 4GB Int Dat Drive 142.72 1,137.12
25 3/24/98 Fine-Tec Pentium 200 MHZ MMX Complete System 325.05 4,265.05
25 3/24/98 Fine-Tec 14" kfc Smile Monitor 0.00 0.00
26 4/23/98 Fine-Tec System Intel Pentium 233MHz MMX w/14" monitor 162.54 2,132.54
26 4/23/98 Fine-Tec 14" KFC Monitor 0.00 0.00
27 4/23/98 Fine-Tec System Intel Pentium II 300MHz 188.92 2,478.92
28 4/29/98 Fine-Tec System Intel Pentium 233MHz MMX 338.28 4,438.28
28 4/29/98 Fine-Tec 17" KFC MONITOR 0.00 0.00
29 5/4/98 Fine-Tec System Intel Pentium II 233MHz W/17" monitor and drive 125.81 1,650.81
30 5/6/98 Dell Computer Dell Dimension XPS R400MHz Pentium II Base, 256 MB. 4GB 309.56 4,061.56
w/17" monitor
31 5/19/98 Fine-Tec System Intel Pentium 200MHz MMX w/14" monitor 160.88 2,110.88
32 5/21/98 Fine-Tec System Intel Pentium 75MHz w/14" monitor and APC 80.03 1,050.03
33 5/26/98 Fine-Tec System Intel Pentium 233MHz MMX w/14" monitor 167.48 2,197.48
34 6/3/98 Fine-Tec System Intel Pentium 75 MHz 51.15 671.15
35 6/3/98 Fine-Tec System Intel Pentium 200MHz MMX 74.26 974.25
36 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/monitor 159.23 2,069.23
36/A 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX 66.00 866.00
38 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/14" SVGA Monitor, MS 87.45 1,147.45
Win 95 on C
39 6/4/98 Fine-Tec System Intel Pentium 200MHz MMX w/Acer 15" SVGA Monitor, 98.18 1,288.18
MSNT 4.0
40 6/17/98 Fine-Tec System Intel Pentium II 266MHz w/Viewsonic G771, 17" 130.35 1,710.35
Monitor
41 6/23/98 Fine-Tec System Intel Pentium II 300MHz w/Acer SVGA Monitor 236.78 3,106.75
42 6/23/98 Fine-Tec System Intel Pentium II 233MHz MMX w/Acer 15" SVGA 184.79 2,424.79
Monitor
43 6/23/98 Fine-Tec System Intel Pentium 233MHz MMX w/Viewsonic 17" SVGA 111.79 1,466.79
Monitor
44 6/25/98 Fine-Tec System Intel Pentium 233MHz MMX w/17" monitor, sound 109.07 1,431.07
card and mouse
45 6/27/98 Fine-Tec System Intel Pentium II 300MHz w/17" & 15" monitor and 171.52 2,250.52
accessories
47 7/2/98 Fine-Tec System Intel Pentium 200MHz MMX w/15" monitor, speakers 89.10 1,169.10
and sound card
48 7/6/98 CAT Technology U80 entire system/monitor 2,535.03 15,918.28
49 7/7/98 Fine-Tec System Intel Pentium II 300 MHz, 128MB, 3.2 GB W/17" mon 137.78 1,807.78
50 7/16/98 Fine-Tec System Intel Pentium II 300 MHz 103.95 1,383.95
51 7/27/98 Fine-Tec System Intel Pentium II 300 MHz w/KFC 14" SVGA Monitor 272.25 3,572.25
52 Intentionally left blank
53 7/31/98 Web Zone HP Vectra VL7 P33 MHZ 651.09 8,543.09
54 7/31/98 Web Zone HP Vectra VL7 P33 MHZ 342.05 4,488.05
55 7/31/98 Keep It Simple Toshiba Tecra 550 CDT Notebook w/accessories 425.15 5,276.15
56 7/31/98 Keep It Simple Toshiba Tecra 550 CDT Notebook w/accessories 457.75 5,702.75
57 8/12/98 Fine Tec Toshiba Tecra 550 CDT Laptop Computer w/accessories 334.54 4,389.54
</TABLE>
<PAGE>
EXHIBIT B
<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
-----------------------------------------------------------------------------------------------------------------------------------
Item # Purchase
Date Vendor Description Invoice #
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
59 8/12/98 Fine Tec HP Vectra VL7 workstation NT OS w/15" monitor 579859
100 8/28/98 Fine Tec Compaq presario 1650 Laptop 579929
101 8/31/98 Fine Tec HP Omnibook 2100 Laptop 579938
102 3/11/98 Dell Computer... Dell Dimension XPS 333 MHz Pentium II MiniTower base 147305692
103 2/10/98 Dell Computer... Dell Dimension XPA 333 MHz Pentium II miniTower base 143352615
104 1/28/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache 140797044
105 2/15/98 Keep it Simple Toshiba Tecra System w/notebook 32376
106 3/12/98 Dell Computer... Dell UltraScan 1600HS. Model 1626 HT w/21" monitor 149009380
107 3/11/98 Dell Computer... Dell Dimension XPS 333 MHx Pentium II MiniTower base 147305692
108 6/18/98 Dell Computer... Dell Latitude CPi266XT LAPTOP 164296832
109 6/18/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 18748423
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base 162079073
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 162079073
111 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/19" monitor 175269828
112 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 173850405
113 8/12/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 174016808
114 9/4/98 Dell Computer... Latitude CPI233ST LAPTOP w/acessories 179258391
115 10/13/98 Dell Computer... Dell Dimension V350 Pentium II 188997714
116 1/20/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon 15794502
117 1/20/98 Dell Computer... Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon 15794629
</TABLE>
<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
------------------------------------------------------------------------------------------------------------------------------------
Item # Purchase
Date Vendor Description Serial #
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
59 8/12/98 Fine Tec HP Vectra VL7 workstation NT OS w/15" monitor 010072AV51517A7/CN83007453
100 8/28/98 Fine Tec Compaq presario 1650 Laptop 1V88BY667BRX/667BRF
101 8/31/98 Fine Tec HP Omnibook 2100 Laptop TW827D0313
102 3/11/98 Dell Computer... Dell Dimension XPS 333 MHz Pentium II MiniTower base 032HW/8282542
103 2/10/98 Dell Computer... Dell Dimension XPA 333 MHz Pentium II miniTower base SN/SN
104 1/28/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache SN/SN
105 2/15/98 Keep it Simple Toshiba Tecra System w/notebook S58021606
106 3/12/98 Dell Computer... Dell UltraScan 1600HS. Model 1626 HT w/21" monitor EF2J9/2733247
107 3/11/98 Dell Computer... Dell Dimension XPS 333 MHx Pentium II MiniTower base SN/SN
108 6/18/98 Dell Computer... Dell Latitude CPi266XT LAPTOP Z2HQD
109 6/18/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor SN/SN
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base EQVW1
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor ER7R8-ER7R9/8104035/B308874
111 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/19" monitor FWSNL/59119-C8Q25
112 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor FWQBV/8287490
113 8/12/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor FVLOS/8283600
114 9/4/98 Dell Computer... Latitude CPI233ST LAPTOP w/acessories ZBQPT & ZBQPX
115 10/13/98 Dell Computer... Dell Dimension V350 Pentium II GT22H
116 1/20/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon 9QNJX/75155385H76491
117 1/20/98 Dell Computer... Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon SN/SN
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
-----------------------------------------------------------------------------------------------------------------------------------
Item # Purchase CDO
Date Vendor Description Asset Tag Quantity
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
59 8/12/98 Fine Tec HP Vectra VL7 workstation NT OS w/15" monitor 1
100 8/28/98 Fine Tec Compaq presario 1650 Laptop 2
101 8/31/98 Fine Tec HP Omnibook 2100 Laptop 1
102 3/11/98 Dell Computer... Dell Dimension XPS 333 MHz Pentium II MiniTower base 1
103 2/10/98 Dell Computer... Dell Dimension XPA 333 MHz Pentium II miniTower base 146137/138 1
104 1/28/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache 146139/140 1
105 2/15/98 Keep it Simple Toshiba Tecra System w/notebook 1
106 3/12/98 Dell Computer... Dell UltraScan 1600HS. Model 1626 HT w/21" monitor 1
107 3/11/98 Dell Computer... Dell Dimension XPS 333 MHx Pentium II MiniTower base 146141 1
108 6/18/98 Dell Computer... Dell Latitude CPi266XT LAPTOP 1
109 6/18/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 146142/143 1
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base 1
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 2
111 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/19" monitor 1
112 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 1
113 8/12/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 1
114 9/4/98 Dell Computer... Latitude CPI233ST LAPTOP w/acessories 2
115 10/13/98 Dell Computer... Dell Dimension V350 Pentium II 1
116 1/20/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon 1
117 1/20/98 Dell Computer... Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon 146144/145 1
</TABLE>
<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
-----------------------------------------------------------------------------------------------------------------------------------
Item # Purchase Financed Unit
Date Vendor Description Amount Price
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
59 8/12/98 Fine Tec HP Vectra VL7 workstation NT OS w/15" monitor 3,718.00 3,718.00
100 8/28/98 Fine Tec Compaq presario 1650 Laptop 6,060.00 3,030.00
101 8/31/98 Fine Tec HP Omnibook 2100 Laptop 5,040.00 5,040.00
102 3/11/98 Dell Computer... Dell Dimension XPS 333 MHz Pentium II MiniTower base 3,822.00 3,822.00
103 2/10/98 Dell Computer... Dell Dimension XPA 333 MHz Pentium II miniTower base 3,405.00 3,405.00
104 1/28/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache 4,188.00 4,188.00
105 2/15/98 Keep it Simple Toshiba Tecra System w/notebook 5,088.00 5,088.00
106 3/12/98 Dell Computer... Dell UltraScan 1600HS. Model 1626 HT w/21" monitor 1,299.00 1,299.00
107 3/11/98 Dell Computer... Dell Dimension XPS 333 MHx Pentium II MiniTower base 3,822.00 3,822.00
108 6/18/98 Dell Computer... Dell Latitude CPi266XT LAPTOP 3,951.00 3,951.00
109 6/18/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 2,798.00 2,798.00
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base 2,102.00 2,102.00
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 5,032.00 2,516.00
111 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/19" monitor 2,882.00 2,882.00
112 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 2,214.00 2,214.00
113 8/12/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 2,766.00 2,766.00
114 9/4/98 Dell Computer... Latitude CPI233ST LAPTOP w/acessories 6,116.00 4,058.00
115 10/13/98 Dell Computer... Dell Dimension V350 Pentium II 1,803.00 1,803.00
116 1/20/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon 4,188.00 4,188.00
117 1/20/98 Dell Computer... Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon 3,305.00 3,305.00
----------- -----------
219,056.75 174,260.76
----------- -----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
-----------------------------------------------------------------------------------------------------------------------------------
Item # Purchase
Date Vendor Description Subtotal
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
59 8/12/98 Fine Tec HP Vectra VL7 workstation NT OS w/15" monitor 3,718.00
100 8/28/98 Fine Tec Compaq presario 1650 Laptop 6,060.00
101 8/31/98 Fine Tec HP Omnibook 2100 Laptop 5,040.00
102 3/11/98 Dell Computer... Dell Dimension XPS 333 MHz Pentium II MiniTower base 3,822.00
103 2/10/98 Dell Computer... Dell Dimension XPA 333 MHz Pentium II miniTower base 3,405.00
104 1/28/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache 4,188.00
105 2/15/98 Keep it Simple Toshiba Tecra System w/notebook 5,088.00
106 3/12/98 Dell Computer... Dell UltraScan 1600HS. Model 1626 HT w/21" monitor 1,299.00
107 3/11/98 Dell Computer... Dell Dimension XPS 333 MHx Pentium II MiniTower base 3,822.00
108 6/18/98 Dell Computer... Dell Latitude CPi266XT LAPTOP 3,951.00
109 6/18/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 2,798.00
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base 2,102.00
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 5,032.00
111 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/19" monitor 2,882.00
112 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 2,214.00
113 8/12/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 2,768.00
114 9/4/98 Dell Computer... Latitude CPI233ST LAPTOP w/acessories 8,116.00
115 10/13/98 Dell Computer... Dell Dimension V350 Pentium II 1,603.00
116 1/20/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon 4,188.00
117 1/20/98 Dell Computer... Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon 3,305.00
----------
212,058.75
----------
</TABLE>
<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
-----------------------------------------------------------------------------------------------------------------------------------
Item # Purchase Freight, Tax Invoice
Date Vendor Description Instal & Other Total
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
59 8/12/98 Fine Tec HP Vectra VL7 workstation NT OS w/15" monitor 306.74 4,024.74
100 8/28/98 Fine Tec Compaq presario 1650 Laptop 660.85 6,720.85
101 8/31/98 Fine Tec HP Omnibook 2100 Laptop 453.75 5,493.75
102 3/11/98 Dell Computer... Dell Dimension XPS 333 MHz Pentium II MiniTower base 423.59 4,245.59
103 2/10/98 Dell Computer... Dell Dimension XPA 333 MHz Pentium II miniTower base 389.18 3,794.18
104 1/28/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz Processor with 512k Cache 453.77 4,541.77
105 2/15/98 Keep it Simple Toshiba Tecra System w/notebook 434.78 5,522.78
106 3/12/98 Dell Computer... Dell UltraScan 1600HS. Model 1626 HT w/21" monitor 115.42 1,414.42
107 3/11/98 Dell Computer... Dell Dimension XPS 333 MHx Pentium II MiniTower base 423.59 4,245.59
108 6/18/98 Dell Computer... Dell Latitude CPi266XT LAPTOP 366.02 4,317.02
109 6/18/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 295.80 3,093.80
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base 273.42 2,375.42
110 6/5/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 615.14 5,647.14
111 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/19" monitor 378.52 3,260.52
112 8/14/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 280.09 2,494.09
113 8/12/98 Dell Computer... Dell Dimension XPS R400MHz Pentium II Base w/17" monitor 228.38 2,996.38
114 9/4/98 Dell Computer... Latitude CPI233ST LAPTOP w/acessories 803.82 8,919.82
115 10/13/98 Dell Computer... Dell Dimension V350 Pentium II 246.20 2,049.20
116 1/20/98 Dell Computer... Dell PowerEdge 2200 Base, 233 MHz, Procs w/512k Cache w/17" mon 453.77 4,641.77
117 1/20/98 Dell Computer... Dell Dimension XPS 300 MHZ Pentium II Minitower w/19" mon 380.92 3,685.92
--------- ----------
21,464.75 240,521.50
--------- ----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
Furniture & Fixtures
-----------------------------------------------------------------------------------------------------------------------------------
Item # Purchase
Date Vendor Description Invoice # Serial # Quantity
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
60 2/19/98 Smart Interiors BC Series BC 44 51115 N/A 10
61 2/23/98 Smart Interiors Used Herman Miller Workstation 21736 N/A 20
</TABLE>
<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
Furniture & Fixtures
-----------------------------------------------------------------------------------------------------------------------------------
Item # Purchase Financed Unit Freight Tax Acquisition
Date Vendor Description Amount Price Subtotal Installation Price
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
60 2/19/98 Smart Interiors BC Series BC 44 1,500.00 150.00 1,500.00 327.00 1,827.00
61 2/23/98 Smart Interiors Used Herman Miller Workstation 19,150.00 957.50 19,150.00 1,729.88 20,879.88
---------------------------------------------------
20,650,00 1,107.50 20,650.00 2,056.88 22,706.88
---------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Equipment
-----------------------------------------------------------------------------------------------------------------------------------
Item # Purchase CDO
Date Vendor Description Invoice # Serial # TAG Quantity
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
62 12/11/97 Atlas ASM, PCB, ACE860 MH, Darwin 754401 N/A 1
63 12/12/97 Cinco NetXRay Pro/100D-110V TEST EQUIP 970931 N/A 1
64 1/6/98 Micro Warehouse Printer Hp Laserjet 4000 TN USNC025827 1
65 2/20/98 Keep it Simple Tektronics Phaser 560 A Color Printer 30068 S/N 146146 1
66 3/30/98 Fry's Linskys 10 Port 740000047 1
67 5/22/98 MBA of California FAX, LDC-780 06227A RT47006166 1
68 6/16/98 Hewlett Packard Logic Analysis System 75R8968 US37210720 1
69 7/20/98 Fine Tec Neigear 100T 16 Port Fast Ehernet Hub 579703 N/A 1
70 8/12/98 Fine Tec 3Com Gigabit Etherlink Server Adapter 579858 7ZAV515DA7 1
71 8/13/98 EIS XGA 1024X768 Polysi Projector w/case and lamp 181685 GB402838 1
72 6/23/96 Keep it Simple HP Laserjet 4000TN 31720 USMC099393 1
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Equipment
-----------------------------------------------------------------------------------------------------------------------------------
Item # Purchase Financed Unit Freight Tax Acquisition
Date Vendor Description Amount Price Subtotal Installation Price
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
62 12/11/97 Atlas ASM, PCB, ACE860 MH, Darwin 1,289.00 1,289.00 1,289.00 114.90 1,403.90
63 12/12/97 Cinco NetXRay Pro/100D-110V TEST EQUIP 4,498.00 4,498.00 4,498.00 348.6 4,846.60
64 1/6/98 Micro Warehouse Printer Hp Laserjet 4000 TN 1,629.00 1,629.00 1,529.00 77.45 1,706.45
65 2/20/98 Keep it Simple Tektronics Phaser 560 A Color Printer 3,990.00 3,990.00 3,990.00 329.18 4,319.18
66 3/30/98 Fry's Linskys 10 Port 649.00 649.00 649.00 53.54 702.54
67 5/22/98 MBA of California FAX, LDC-760 1,695.00 1,695.00 1,695.00 139.54 1,834.84
68 6/16/98 Hewlett Packard Logic: Analysis System 22,003.50 22,003.50 22,003.50 1,815.28 23,616.78
69 7/20/98 Fine Tec Neigear 100T 16 Port East Ehernet Hub 645.00 645.00 649.00 1,673.72 2,318.72
70 8/12/98 Fine Tec 3Com Gigabit Etherlink Server Adapter 680.00 680.00 680.00 56.10 736.10
71 8/13/98 EIS XGA 1024X768 Polysi Projector w/case 8,500.00 8,500.00 8,500.00 701.25 9,201.25
and lamp
72 6/23/98 Keep it Simple HP Laserjet 4000TN 1,640.00 1,640.00 1,640.00 150.30 1,790.30
---------------------------------------------------
47,218.50 47,218.50 47,218.00 5,460.16 52,678.88
---------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Telephone Equipment
-----------------------------------------------------------------------------------------------------------------------------------
Item # Purchase
Date Vendor Description Invoice # Serial # Quantity Financed Unit
Amount Price
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
73 1/28/98 Germfire Corp Toshiba Straia OK-96 PCTU4 1588 N/A 1 5,000.00 5,000.00
----------------------------
5,000.00 5,000.00
----------------------------
</TABLE>
<TABLE>
<CAPTION>
Telephone Equipment
-----------------------------------------------------------------------------------------------------------------------------------
Item # Purchase
Date Vendor Description Freight, Tax Acquisition
Subtotal Installation Price
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
73 1/28/98 Germfire Corp Toshiba Straia OK-96 PCTU4 5,000.00 5,000.00 5,412.50
---------------------------------------------------
5,000.00 5,000.00 5,412.50
---------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Software
-----------------------------------------------------------------------------------------------------------------------------------
Purchase
Item# Date Vendor Description Invoice # Serial # Quantity
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
46 6/29/98 Fine Tec MS SQL 6.5 Server with 10 Client 679751 N/A 1
74 2/5/98 Keep It Simple Goldmine V3.2 SW F/W95 5 User 1 Doc CD 29542 N/A 1
75 2/11/98 Keep It Simple Adobe Framemaker V5.5 w/acrobat CD W95 29926 N/A 1
76 2/27/98 Diablo Data Inc. C Cross Complier for PPC, ver 4.1A:1 SLW95CPPC 33400,401 2
77 2/28/98 Accelerated Techn NU930107 Nucleus Plus System N/A 1
78 3/19/98 Keep It Simple Adobe Pagemaker V6.5 w/acrobat CD w95 N/A 1
79 4/30/98 Agranat System... EMWEB Complier Code and Server Code 30412 N/A 1
80 5/15/98 DSCI Multi-User System Manager - 3 User License 180520 N/A 1
81 5/15/98 DSCI Additional User Blocks N/A 1
82 5/15/98 DSCI General Ledger w/FRx Advanced N/A 1
83 5/15/98 DSCI Accounts Payable N/A 1
</TABLE>
<TABLE>
<CAPTION>
Software
-----------------------------------------------------------------------------------------------------------------------------------
Purchase Financed Unit
Item# Date Vendor Description Amount Price Subtotal
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
46 6/29/98 Fine Tec MS SQL 6.5 Server with 10 Client 1,670.00 1,670.00 1,670.00
74 2/5/98 Keep It Simple Goldmine V3.2 SW F/W95 5 User 1 Doc CD 725.00 725.00 725.00
75 2/11/98 Keep It Simple Adobe Framemaker V5.5 w/acrobat CD W95 745.00 745.00 745.00
76 2/27/98 Diablo Data Inc. C Cross Complier for PPC, ver 4.1A:1 SLW95CPPC 3,980.00 1,980.00 3,960.00
77 2/28/98 Accelerated Techn NU930107 Nucleus Plus System 22,490.00 22,490.00 22,490.00
78 3/19/98 Keep It Simple Adobe Pagemaker V6.5 w/acrobat CD w95 595.00 595.00 595.00
79 4/30/98 Agranat System... EMWEB Complier Code and Server Code 25,000.00 25,000.00 25,000.00
80 5/15/98 DSCI Multi-User System Manager - 3 User License 2,495.00 2,495.00 2,495.00
81 5/15/98 DSCI Additional User Blocks 2,495.00 2,495.00 2,495.00
82 5/15/98 DSCI General Ledger w/FRx Advanced 4,995.00 4,995.00 4,995.00
83 5/15/98 DSCI Accounts Payable 1,595.00 1,595.00 1,595.00
</TABLE>
<TABLE>
<CAPTION>
Software
-----------------------------------------------------------------------------------------------------------------------------------
Purchase Freight Tax Acquisition
Item# Date Vendor Description Installation Price
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
46 6/29/98 Fine Tec MS SQL 6.5 Server with 10 Client 137.77 1,807.77
74 2/5/98 Keep It Simple Goldmine V3.2 SW F/W95 5 User 1 Doc CD 64.82 789.82
75 2/11/98 Keep It Simple Adobe Framemaker V5.5 w/acrobat CD W95 64.47 809.47
76 2/27/98 Diablo Data Inc. C Cross Complier for PPC, ver 4.1A:1 SLW95CPPC 336.70 4,296.70
77 2/28/98 Accelerated Techn NU930107 Nucleus Plus System 1,885.43 24,375.43
78 3/19/98 Keep It Simple Adobe Pagemaker V6.5 w/acrobat CD w95 69.10 664.10
79 4/30/98 Agranat System... EMWEB Complier Code and Server Code 25,000.00 25,000.00
80 5/15/98 DSCI Multi-User System Manager - 3 User License 205.84 2,700.84
81 5/15/98 DSCI Additional User Blocks 205.84 2,700.84
82 5/15/98 DSCI General Ledger w/FRx Advanced 412.09 5,407.09
83 5/15/98 DSCI Accounts Payable 131.60 1,726.60
</TABLE>
<PAGE>
EXHIBIT B
<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
------------------------------------------------------------------------------------------------------------------------------------
Purchase CDO Financed
Item # Date Vendor Description Invoice # Serial # Asset Tag Quantity Amount
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
84 5/15/98 DSCI Accounts Receivable N/A 1 1,595.00
85 5/15/98 DSCI Bank Book N/A 1 1,395.00
86 5/15/98 DSCI Sales Order N/A 1 1,595.00
87 5/15/98 DSCI Purchase Order N/A 1 1,595.00
88 5/15/98 DSCI Inventory N/A 1 1,595.00
89 5/15/98 DSCI Btrieve Server Edition for NT N/A 1 1,495.00
90 5/15/98 DSCI Maynard Rigby Bill of Materials N/A 1 3,300.00
91 5/15/98 DSCI Best Fixed Assets for Windows-Single User N/A 1 1,595.00
92 6/30/98 Clientele Clientele Software and Services 71718 N/A 1 24,119.40
93 7/10/98 PADS Critical Place and Route 124012 N/A 1 2,195,00
94 8/17/98 Fine Tec Network Associate Sniffer License 579880 N/A 2 1,720.00
95 8/19/98 Wyle PLS Magnum 758268 N/A 1 1,000.00
96 8/19/98 Wyle PLAESW-PC 758268 N/A 1 1,495.00
97 7/3/98 Synopsys Software Tool 70030415 N/A 1 77,570.00
100 8/28/98 Fine Tec MS Office 97 579929 N/A 2 920.00
101 8/31/98 Fine Tec MS Office 97 579938 N/A 1 460.00
----------
190,409.40
----------
----------
Software Total 190,409.40
Computers FF, EQ, TE Total 291,925.25
----------
Grand Total 482,334.65
</TABLE>
<TABLE>
<CAPTION>
NetScreen Technologies, Inc.
PLB LOAN ASSETS
------------------------------------------------------------------------------------------------------------------------------------
Purchase Unit Freight, Tax Invoice
Item # Date Vendor Description Price Subtotal Instal & other Total
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
84 5/15/98 DSCI Accounts Receivable 1,595.00 1,595.00 131.60 1,726.60
85 5/15/98 DSCI Bank Book 1,395.00 1,395.00 115.00 1,510.00
86 5/15/98 DSCI Sales Order 1,595.00 1,595.00 131.60 1,726.60
87 5/15/98 DSCI Purchase Order 1,595.00 1,595.00 131.60 1,726.60
88 5/15/98 DSCI Inventory 1,595.00 1,595.00 131.60 1,726.60
89 5/15/98 DSCI Btrieve Server Edition for NT 1,495.00 1,495.00 123.34 1,618.34
90 5/15/98 DSCI Maynard Rigby Bill of Materials 3,300.00 3,300.00 272.25 3,572.25
91 5/15/98 DSCI Best Fixed Assets for Windows-Single User 1,595.00 1,595.00 131.60 1,726.60
92 6/30/98 Clientele Clientele Software and Services 24,119.40 24,119.40 8,129.41 32,248.81
93 7/10/98 PADS Critical Place and Route 2,195.00 2,195.00 544.63 2,739.63
94 8/17/98 Fine Tec Network Associate Sniffer License 860.00 1,720.00 141.90 1,861.90
95 8/19/98 Wyle PLS Magnum 1,000.00 1,000.00 82.50 1,082.50
96 8/19/98 Wyle PLAESW-PC 1,495.00 1,495.00 123.33 1,618.33
97 7/3/98 Synopsys Software Tool 77,570.00 77,570.00 21,365.00 98,935.00
100 8/28/98 Fine Tec MS Office 97 460.00 920.00 - 920.00
101 8/31/98 Fine Tec MS Office 97 460.00 460.00 - 460.00
---------- ---------- --------- ----------
187,109.40 190,409.40 60,069.02 225,478.42
---------- ---------- --------- ----------
</TABLE>