Loan and Security Agreement - Silicon Valley Bank and InVision Technologies Inc.


SILICON VALLEY BANK

          LOAN AND SECURITY AGREEMENT


BORROWER: INVISION TECHNOLOGIES, INC.

ADDRESS:  7151 GATEWAY BLVD.
          NEWARK, CALIFORNIA 94560

DATE:     NOVEMBER 8, 2000


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

1. LOANS.

   1.1 LOANS. Silicon will make loans to Borrower (the "Loans"), in amounts 
determined by Silicon in its sole discretion, up to the amounts (the "Credit 
Limit") shown on the Schedule, provided no Default or Event of Default has 
occurred and is continuing, and subject to deduction of any Reserves for 
accrued interest and such other Reserves as Silicon deems proper from time to 
time.

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

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

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

   1.5 LETTERS OF CREDIT. At the request of Borrower, Silicon may, in its 
sole discretion, issue or arrange for the issuance of letters of credit for 
the account of Borrower, in each case in form and substance satisfactory to 
Silicon in its sole discretion (collectively, "Letters of Credit"). The 
aggregate face amount of all outstanding Letters of Credit from time to time 
shall not exceed the amount shown on the Schedule (the "Letter of Credit 
Sublimit"), and shall be reserved against Loans which would otherwise be 
available hereunder. Borrower shall pay all bank charges (including charges 
of Silicon) for the issuance of Letters of Credit, together with such 
additional fee as Silicon's letter of credit department shall charge in 
connection with the issuance of the Letters of Credit. Any payment by Silicon 
under or in connection with a Letter of Credit shall constitute a Loan 
hereunder on the date such payment is made. Each Letter of Credit shall have 
an expiry date no later than thirty days prior to the Maturity Date unless 
cash secured in accordance with Section 6.3 hereof. Borrower hereby agrees to 
indemnify, save, and hold Silicon harmless from any loss, cost, expense, or 
liability, including payments made by Silicon, expenses, and reasonable 
attorneys' fees incurred by Silicon arising out of or in connection with any 
Letters of Credit. Borrower agrees to be bound by the regulations and 
interpretations of the issuer of any Letters of Credit guarantied by Silicon 
and opened for Borrower's account or by Silicon's interpretations of any 
Letter of Credit issued by Silicon for Borrower's account, and Borrower 
understands and agrees that Silicon shall not be liable for any error, 
negligence, or mistake, whether of omission or commission, in following 
Borrower's instructions or those contained in the Letters of Credit or any 
modifications, amendments, or supplements thereto but nothing herein shall 
relieve Silicon from liability for its own gross negligence or willful 
misconduct. Borrower understands that Letters of Credit may require Silicon 
to indemnify the issuing bank for certain costs or liabilities arising out of 
claims by Borrower against such issuing bank.

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Borrower hereby agrees to indemnify and hold Silicon harmless with respect to 
any loss, cost, expense, or liability incurred by Silicon under any Letter of 
Credit as a result of Silicon's indemnification of any such issuing bank. The 
provisions of this Loan Agreement, as it pertains to Letters of Credit, and 
any other present or future documents or agreements between Borrower and 
Silicon relating to Letters of Credit are cumulative.

2. SECURITY INTEREST.

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

3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWER.

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

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

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

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

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

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

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

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

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financial condition or business of Borrower. Borrower is now and will 
continue to be solvent.

   3.8 TAX RETURNS AND PAYMENTS; PENSION CONTRIBUTIONS. Borrower has timely 
filed, and will timely file, all tax returns and reports required by foreign, 
federal, state and local law, and Borrower has timely paid, and will timely 
pay, all foreign, federal, state and local taxes, assessments, deposits and 
contributions now or in the future owed by Borrower. Borrower may, however, 
defer payment of any contested taxes, provided that Borrower (i) in good 
faith contests Borrower's obligation to pay the taxes by appropriate 
proceedings promptly and diligently instituted and conducted, (ii) notifies 
Silicon in writing of the commencement of, and any material development in, 
the proceedings, and (iii) posts bonds or takes any other steps required to 
keep the contested taxes from becoming a lien upon any of the Collateral. 
Borrower is unaware of any claims or adjustments proposed for any of 
Borrower's prior tax years which could result in additional taxes becoming 
due and payable by Borrower. Borrower has paid, and shall continue to pay all 
amounts necessary to fund all present and future pension, profit sharing and 
deferred compensation plans in accordance with their terms, and Borrower has 
not and will not withdraw from participation in, permit partial or complete 
termination of, or permit the occurrence of any other event with respect to, 
any such plan which could result in any liability of Borrower, including any 
liability to the Pension Benefit Guaranty Corporation or its successors or 
any other governmental agency. Borrower shall, at all times, utilize the 
services of an outside payroll service providing for the automatic deposit of 
all payroll taxes payable by Borrower.

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

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

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

4. RECEIVABLES.

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

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

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

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

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

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

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

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

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

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

5. ADDITIONAL DUTIES OF THE BORROWER.

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

   5.2 INSURANCE. Borrower shall, at all times insure all of the tangible 
personal property Collateral and carry such other business insurance, with 
insurers reasonably acceptable to Silicon, in such form and amounts as 
Silicon may reasonably require, and Borrower shall provide evidence of such 
insurance to Silicon, so that Silicon is satisfied that such insurance is, at 
all times, in full force and effect. All such insurance policies shall name 
Silicon as an additional loss payee, and shall contain a lenders loss payee 
endorsement in form reasonably acceptable to Silicon. Upon receipt of the 
proceeds of any such insurance, Silicon shall apply such proceeds in 
reduction of the Obligations as Silicon shall determine in its sole 
discretion, except that, provided no Default or Event of Default has occurred 
and is continuing, Silicon shall release to Borrower insurance proceeds with 
respect to Equipment totaling less than $100,000, which shall be utilized by 
Borrower for the replacement of the Equipment with respect to which the 
insurance proceeds were paid. Silicon may require reasonable assurance that 
the insurance proceeds so released will be so used. If Borrower fails to 
provide or pay for any insurance, Silicon may, but is not obligated to, 
obtain the same at Borrower's expense. Borrower shall promptly deliver to 
Silicon copies of all reports made to insurance companies.

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

   5.4 ACCESS TO COLLATERAL, BOOKS AND RECORDS. At reasonable times, and on 
one Business Day's notice, Silicon, or its agents, shall have the right to 
inspect the Collateral, and the right to audit and copy Borrower's books and 
records except for "sensitive security information" as defined in, and 
subject to protection under, 14 CFR Part 191 (unless otherwise permitted by 
the Federal Aviation Administration). Silicon shall take reasonable steps to 

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

   5.5 NEGATIVE COVENANTS. Except as may be permitted in the Schedule, 
Borrower shall not, without Silicon's prior written consent, do any of the 
following: (i) merge or consolidate with another corporation or entity; (ii) 
acquire any assets, except in the ordinary course of business; (iii) enter 
into any other transaction outside the ordinary course of business; (iv) sell 
or transfer any Collateral, except for the sale of finished Inventory in the 
ordinary course of Borrower's business, and except for the sale of obsolete 
or unneeded Equipment in the ordinary course of business; (v) store any 
Inventory or other Collateral with any warehouseman or other third party in 
excess of $7,000,000 in the aggregate (PROVIDED, HOWEVER, that in no event 
shall more than $5,000,000 in the aggregate be stored with any warehouseman 
or other third party outside the United States; PROVIDED, FURTHER, that with 
respect to any Inventory or other Collateral stored with any warehouseman or 
other third party within the United States, such warehouseman or other third 
party (other than airports) must execute an agreement in form and substance 
acceptable to Silicon in its discretion and all other documents deemed 
necessary by Silicon must have been executed and recorded, if applicable, to 
ensure that Silicon has a first priority perfected and enforceable security 
interest against the Inventory and other Collateral maintained with such 
warehouseman or other third party EXCEPT that the aforementioned agreement 
and other documents will not be required if the value of the Inventory and 
other Collateral maintained at such warehouseman or other third party is less 
than $50,000 (the "Minimal Value Warehouseman") and so long as the value of 
the Inventory and other Collateral maintained at all Minimal Value 
Warehouseman, in the aggregate, is less than $200,000 (if the aggregate 
figure exceeds $200,000, then in such instance, the aforementioned agreement 
and other documents will need to be obtained from as many Minimal Value 
Warehouseman as needed to reduce the aggregate figure below $200,000)); 
additionally, Borrower and Silicon agree that the Inventory and other 
Collateral maintained at RB High Tech Transport, 503 Quarry Road, San Carlos, 
California 94070 (the "San Carlos Facility") will not be included in the 
$7,000,000 aggregate figure described above; however, RB High Tech Transport 
must execute and provide to Silicon, on Silicon's standard form, a Notice to 
Bailee of Security Interest and other such documents deemed necessary by 
Silicon with respect to the San Carlos Facility; (vi) except as approved by 
Silicon in writing, sell any Inventory on a sale-or-return, guaranteed sale, 
consignment, or other contingent basis; (vii) make any loans of any money or 
other assets; (viii) incur any debts, outside the ordinary course of 
business, which would have a material, adverse effect on Borrower or on the 
prospect of repayment of the Obligations; (ix) guarantee or otherwise become 
liable with respect to the obligations of another party or entity; (x) pay or 
declare any dividends on Borrower's stock (except for dividends payable 
solely in stock of Borrower); (xi) redeem, retire, purchase or otherwise 
acquire, directly or indirectly, any of Borrower's stock; (xii) make any 
change in Borrower's capital structure which would have a material adverse 
effect on Borrower or on the prospect of repayment of the Obligations; or 
[OMITTED] (xiv) dissolve or elect to dissolve. Transactions permitted by the 
foregoing provisions of this Section are only permitted if no Default or 
Event of Default would occur as a result of such transaction.

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

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

6. TERM.

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

   6.2 EARLY TERMINATION. This Agreement may be terminated prior to the 
Maturity Date as follows: (i) by Borrower, effective three Business Days 
after written notice of termination is given to Silicon; or (ii) by Silicon 
at any time after the occurrence of an Event of Default, without notice, 
effective immediately. If this Agreement is terminated by Borrower under this 
Section 6.2, Borrower shall pay to Silicon a termination fee in an amount 
equal to one-half of one percent (0.50%) of the Maximum Revolving Credit 
Limit, provided that no termination fee shall be charged if the credit 
facility hereunder is replaced with a new facility from another division of 
Silicon Valley Bank. The termination fee shall be due and payable on the 
effective date of termination and thereafter shall bear interest at a rate 
equal to the highest rate applicable to any of the Obligations.

   6.3 PAYMENT OF OBLIGATIONS. On the Maturity Date or on any earlier 
effective date of termination, Borrower shall pay and perform in full all 
Obligations, whether evidenced by installment notes or otherwise, and whether 
or not all or any part of such Obligations are otherwise 

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then due and payable. Without limiting the generality of the foregoing, if on 
the Maturity Date (as amended from time to time), or on any earlier effective 
date of termination, there are any outstanding Letters of Credit issued by 
Silicon or issued by another institution based upon an application, 
guarantee, indemnity or similar agreement on the part of Silicon, then on 
such date Borrower shall provide to Silicon cash collateral in an amount 
equal to the face amount of all such Letters of Credit plus all interest, 
fees and cost due or to become due in connection therewith, to secure all of 
the Obligations relating to said Letters of Credit, pursuant to Silicon's 
then standard form cash pledge agreement. Notwithstanding any termination of 
this Agreement, all of Silicon's security interests in all of the Collateral 
and all of the terms and provisions of this Agreement shall continue in full 
force and effect until all Obligations have been paid and performed in full; 
provided that, without limiting the fact that Loans are subject to the 
discretion of Silicon, Silicon may, in its sole discretion, refuse to make 
any further Loans after termination. No termination shall in any way affect 
or impair any right or remedy of Silicon, nor shall any such termination 
relieve Borrower of any Obligation to Silicon, until all of the Obligations 
have been paid and performed in full. Upon payment and performance in full of 
all the Obligations and termination of this Agreement, Silicon shall promptly 
deliver to Borrower termination statements, requests for reconveyances and 
such other documents as may be required to fully terminate Silicon's security 
interests.

7. EVENTS OF DEFAULT AND REMEDIES.

   7.1 EVENTS OF DEFAULT. The occurrence of any of the following events shall 
constitute an "Event of Default" under this Agreement, and Borrower shall 
give Silicon immediate written notice thereof: (a) Any warranty, 
representation, statement, report or certificate made or delivered to Silicon 
by Borrower or any of Borrower's officers, employees or agents, now or in the 
future, shall be untrue or misleading in a material respect; or (b) Borrower 
shall fail to pay when due any Loan or any interest thereon or any other 
monetary Obligation; or (c) the total Loans and other Obligations outstanding 
at any time shall exceed the Credit Limit; or (d) Borrower shall fail to 
comply with any of the financial covenants set forth in the Schedule or shall 
fail to perform any other non-monetary Obligation which by its nature cannot 
be cured; or (e) Borrower shall fail to perform any other non-monetary 
Obligation, which failure is not cured within 5 Business Days after the date 
due; or (f) any levy, assessment, attachment, seizure, lien or encumbrance 
(other than a Permitted Lien) is made on all or any part of the Collateral 
which is not cured within 10 days after the occurrence of the same; or (g) 
any default or event of default occurs under any obligation secured by a 
Permitted Lien, which is not cured within any applicable cure period or 
waived in writing by the holder of the Permitted Lien; or (h) Borrower 
breaches any material contract or obligation, which has or may reasonably be 
expected to have a material adverse effect on Borrower's business or 
financial condition; or (i) Dissolution, termination of existence, insolvency 
or business failure of Borrower; or appointment of a receiver, trustee or 
custodian, for all or any part of the property of, assignment for the benefit 
of creditors by, or the commencement of any proceeding by Borrower under any 
reorganization, bankruptcy, insolvency, arrangement, readjustment of debt, 
dissolution or liquidation law or statute of any jurisdiction, now or in the 
future in effect; or (j) the commencement of any proceeding against Borrower 
or any guarantor of any of the Obligations under any reorganization, 
bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or 
liquidation law or statute of any jurisdiction, now or in the future in 
effect, which is not cured by the dismissal thereof within 30 days after the 
date commenced; or (k) revocation or termination of, or limitation or denial 
of liability upon, any guaranty of the Obligations or any attempt to do any 
of the foregoing, or commencement of proceedings by any guarantor of any of 
the Obligations under any bankruptcy or insolvency law; or (l) revocation or 
termination of, or limitation or denial of liability upon, any pledge of any 
certificate of deposit, securities or other property or asset of any kind 
pledged by any third party to secure any or all of the Obligations, or any 
attempt to do any of the foregoing, or commencement of proceedings by or 
against any such third party under any bankruptcy or insolvency law; or (m) 
Borrower makes any payment on account of any indebtedness or obligation which 
has been subordinated to the Obligations other than as permitted in the 
applicable subordination agreement, or if any Person who has subordinated 
such indebtedness or obligations terminates or in any way limits his 
subordination agreement; [OMITTED] or (o) Borrower shall generally not pay 
its debts as they become due, or Borrower shall conceal, remove or transfer 
any part of its property, with intent to hinder, delay or defraud its 
creditors, or make or suffer any transfer of any of its property which may be 
fraudulent under any bankruptcy, fraudulent conveyance or similar law; or (p) 
there shall be a material adverse change in Borrower's business or financial 
condition; or (q) Silicon, acting in good faith and in a commercially 
reasonable manner, deems itself insecure because of the occurrence of an 
event prior to the effective date hereof of which Silicon had no knowledge on 
the effective date or because of the occurrence of an event on or subsequent 
to the effective date. Silicon may cease making any Loans hereunder during 
any of the above cure periods, and thereafter if an Event of Default has 
occurred.

   7.2 REMEDIES. Upon the occurrence of any Event of Default, and at any time 
thereafter, Silicon, at its option, and without notice or demand of any kind 
(all of which are hereby expressly waived by Borrower), may do any one or 
more of the following: (a) Cease making Loans or otherwise extending credit 
to Borrower under this Agreement or any other document or agreement; (b) 
Accelerate and declare all or any part of the Obligations to be immediately 
due, payable, and performable, notwithstanding any deferred or installment 
payments allowed by any instrument evidencing or relating to any Obligation; 
(c) Take possession of any or all of the Collateral wherever it may be found, 
and for that purpose Borrower hereby authorizes Silicon without judicial 
process to enter onto any of Borrower's premises without interference to 
search for, take possession of, keep, store, or remove any of the Collateral, 
and remain on the premises or cause a custodian to remain on the premises in 
exclusive control thereof, without charge for so long as Silicon deems it 
reasonably necessary in order to complete the enforcement of its rights under 
this Agreement or any other agreement; provided, however, that should Silicon 
seek to take possession of any of the Collateral by Court process, Borrower 
hereby irrevocably waives: (i) any bond and any surety or security relating 

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         SILICON VALLEY BANK                  LOAN AND SECURITY AGREEMENT
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thereto required by any statute, court rule or otherwise as an incident to 
such possession; (ii) any demand for possession prior to the commencement of 
any suit or action to recover possession thereof; and (iii) any requirement 
that Silicon retain possession of, and not dispose of, any such Collateral 
until after trial or final judgment; (d) Require Borrower to assemble any or 
all of the Collateral and make it available to Silicon at places designated 
by Silicon which are reasonably convenient to Silicon and Borrower, and to 
remove the Collateral to such locations as Silicon may deem advisable; (e) 
Complete the processing, manufacturing or repair of any Collateral prior to a 
disposition thereof and, for such purpose and for the purpose of removal, 
Silicon shall have the right to use Borrower's premises, vehicles, hoists, 
lifts, cranes, equipment and all other property without charge; (f) Sell, 
lease or otherwise dispose of any of the Collateral in a commercially 
reasonable manner (as described in Section 7.3 below), in its condition at 
the time Silicon obtains possession of it or after further manufacturing, 
processing or repair, at one or more public and/or private sales, in lots or 
in bulk, for cash, exchange or other property, or on credit, and to adjourn 
any such sale from time to time without notice other than oral announcement 
at the time scheduled for sale. Silicon shall have the right to conduct such 
disposition on Borrower's premises without charge, for such time or times as 
Silicon deems reasonable, or on Silicon's premises, or elsewhere and the 
Collateral need not be located at the place of disposition. Silicon may 
directly or through any affiliated company purchase or lease any Collateral 
at any such public disposition, and if permissible under applicable law, at 
any private disposition. Any sale or other disposition of Collateral shall 
not relieve Borrower of any liability Borrower may have if any Collateral is 
defective as to title or physical condition or otherwise at the time of sale; 
(g) Demand payment of, and collect any Receivables and General Intangibles 
comprising Collateral and, in connection therewith, Borrower irrevocably 
authorizes Silicon to endorse or sign Borrower's name on all collections, 
receipts, instruments and other documents, to take possession of and open 
mail addressed to Borrower and remove therefrom payments made with respect to 
any item of the Collateral or proceeds thereof, and, in Silicon's sole 
discretion, to grant extensions of time to pay, compromise claims and settle 
Receivables and the like for less than face value; (h) Offset against any 
sums in any of Borrower's general, special or other Deposit Accounts with 
Silicon; and (i) Demand and receive possession of any of Borrower's federal 
and state income tax returns and the books and records utilized in the 
preparation thereof or referring thereto. All reasonable attorneys' fees, 
expenses, costs, liabilities and obligations incurred by Silicon with respect 
to the foregoing shall be added to and become part of the Obligations, shall 
be due on demand, and shall bear interest at a rate equal to the highest 
interest rate applicable to any of the Obligations. Without limiting any of 
Silicon's rights and remedies, from and after the occurrence of any Event of 
Default, the interest rate applicable to the Obligations shall be increased 
by an additional four percent per annum.

   7.3 STANDARDS FOR DETERMINING COMMERCIAL REASONABLENESS. Borrower and 
Silicon agree that a sale or other disposition (collectively, "sale") of any 
Collateral which complies with the following standards will conclusively be 
deemed to be commercially reasonable: (i) Notice of the sale is given to 
Borrower at least seven days prior to the sale, and, in the case of a public 
sale, notice of the sale is published at least seven days before the sale in 
a newspaper of general circulation in the county where the sale is to be 
conducted; (ii) Notice of the sale describes the collateral in general, 
non-specific terms; (iii) The sale is conducted at a place designated by 
Silicon, with or without the Collateral being present; (iv) The sale 
commences at any time between 8:00 a.m. and 6:00 p.m; (v) Payment of the 
purchase price in cash or by cashier's check or wire transfer is required; 
(vi) With respect to any sale of any of the Collateral, Silicon may (but is 
not obligated to) direct any prospective purchaser to ascertain directly from 
Borrower any and all information concerning the same. Silicon shall be free 
to employ other methods of noticing and selling the Collateral, in its 
discretion, if they are commercially reasonable.

   7.4 POWER OF ATTORNEY. Upon the occurrence of any Event of Default, 
without limiting Silicon's other rights and remedies, Borrower grants to 
Silicon an irrevocable power of attorney coupled with an interest, 
authorizing and permitting Silicon (acting through any of its employees, 
attorneys or agents) at any time, at its option, but without obligation, with 
or without notice to Borrower, and at Borrower's expense, to do any or all of 
the following, in Borrower's name or otherwise, but Silicon agrees to 
exercise the following powers in a commercially reasonable manner: (a) 
Execute on behalf of Borrower any documents that Silicon may, in its sole 
discretion, deem advisable in order to perfect and maintain Silicon's 
security interest in the Collateral, or in order to exercise a right of 
Borrower or Silicon, or in order to fully consummate all the transactions 
contemplated under this Agreement, and all other present and future 
agreements; (b) Execute on behalf of Borrower any document exercising, 
transferring or assigning any option to purchase, sell or otherwise dispose 
of or to lease (as lessor or lessee) any real or personal property which is 
part of Silicon's Collateral or in which Silicon has an interest; (c) Execute 
on behalf of Borrower, any invoices relating to any Receivable, any draft 
against any Account Debtor and any notice to any Account Debtor, any proof of 
claim in bankruptcy, any Notice of Lien, claim of mechanic's, materialman's 
or other lien, or assignment or satisfaction of mechanic's, materialman's or 
other lien; (d) Take control in any manner of any cash or non-cash items of 
payment or proceeds of Collateral; endorse the name of Borrower upon any 
instruments, or documents, evidence of payment or Collateral that may come 
into Silicon's possession; (e) Endorse all checks and other forms of 
remittances received by Silicon; (f) Pay, contest or settle any lien, charge, 
encumbrance, security interest and adverse claim in or to any of the 
Collateral, or any judgment based thereon, or otherwise take any action to 
terminate or discharge the same; (g) Grant extensions of time to pay, 
compromise claims and settle Receivables and General Intangibles for less 
than face value and execute all releases and other documents in connection 
therewith; (h) Pay any sums required on account of Borrower's taxes or to 
secure the release of any liens therefor, or both; (i) Settle and adjust, and 
give releases of, any insurance claim that relates to any of the Collateral 
and obtain payment therefor; (j) Instruct any third party having custody or 
control of any books or records belonging to, or relating to, Borrower to 
give Silicon the same rights of access and other rights with 

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         SILICON VALLEY BANK                  LOAN AND SECURITY AGREEMENT
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respect thereto as Silicon has under this Agreement; and (k) Take any action 
or pay any sum required of Borrower pursuant to this Agreement and any other 
present or future agreements. Any and all reasonable sums paid and any and 
all reasonable costs, expenses, liabilities, obligations and attorneys' fees 
incurred by Silicon with respect to the foregoing shall be added to and 
become part of the Obligations, shall be payable on demand, and shall bear 
interest at a rate equal to the highest interest rate applicable to any of 
the Obligations. In no event shall Silicon's rights under the foregoing power 
of attorney or any of Silicon's other rights under this Agreement be deemed 
to indicate that Silicon is in control of the business, management or 
properties of Borrower.

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

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

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

   "ACCOUNT DEBTOR" means the obligor on a Receivable.

   "AFFILIATE" means, with respect to any Person, a relative, partner, 
shareholder, director, officer, or employee of such Person, or any parent or 
subsidiary of such Person, or any Person controlling, controlled by or under 
common control with such Person.

   "BUSINESS DAY" means a day on which Silicon is open for business.

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

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

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

   "DEPOSIT ACCOUNT" has the meaning set forth in Section 9105 of the Code.

   "ELIGIBLE INVENTORY"  [NOT APPLICABLE].

   "ELIGIBLE RECEIVABLES" means Receivables arising in the ordinary course of 
Borrower's business from the sale of goods or rendition of services, which 
Silicon, in its sole judgment, shall deem eligible for borrowing, based on 
such considerations as Silicon may from time to time deem appropriate. 
Without limiting the fact that the determination of which Receivables are 
eligible for borrowing is a matter of Silicon's discretion,  the following 
(the "MINIMUM ELIGIBILITY REQUIREMENTS") are the minimum requirements for a 
Receivable to be an Eligible Receivable: (i) the Receivable must not be 
outstanding for more than 90 days from its invoice date, (ii) the Receivable 
must not represent progress billings, or be due under a fulfillment or 
requirements contract with the Account Debtor, (iii) the Receivable must not 
be subject to any contingencies (including Receivables arising from sales on 
consignment, guaranteed sale or other terms pursuant to which payment by the 
Account Debtor may be conditional), (iv) the Receivable must not be owing 
from an Account Debtor with whom the Borrower has any dispute (whether or not 
relating to the particular Receivable), (v) the Receivable must not be owing 
from an Affiliate of Borrower, (vi) the Receivable must not be owing from an 
Account Debtor which is subject to any insolvency or bankruptcy proceeding, 
or whose financial condition is not acceptable to Silicon, or which, fails or 
goes out of a material portion of its business, (vii) the Receivable must not 
be owing from the United States or any department, agency or instrumentality 
thereof (unless there has been compliance, to Silicon's satisfaction, with 
the United States Assignment of Claims Act), (viii) the Receivable must not 
be owing from an Account Debtor located outside the United States or Canada 
(unless pre-approved by Silicon in its discretion in writing (in which 
instance, the amount advanced against such Receivable(s) may be less than 80% 
thereof in Silicon's sole discretion), or backed by a letter of credit 
satisfactory to Silicon, or FCIA insured satisfactory to Silicon), (ix) the  
Receivable must not be owing from an Account Debtor to whom Borrower is or 
may be liable for goods purchased from such Account Debtor or otherwise. 
Receivables  owing from one Account Debtor will not be deemed Eligible 
Receivables to the extent they exceed 25% of the total Receivables 
outstanding (except that such limitation shall not be applicable to 
Receivables that satisfy both of the following:  (a) Receivables for  which 
the Federal Aviation Administration is the Account Debtor and (b) which are 
otherwise deemed Eligible Receivables pursuant to the terms hereof). In 
addition, if more than 50% of the Receivables owing from an Account Debtor 
are outstanding more than 90 days from their invoice date (without regard to 
unapplied credits) or are otherwise not eligible Receivables, then all 
Receivables owing from that Account Debtor will be deemed ineligible for 
borrowing. Silicon may, from time to time, in its discretion, revise the 
Minimum Eligibility Requirements, upon written notice to the Borrower.

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

   "EVENT OF DEFAULT" means any of the events set forth in Section 7.1 of 
this Agreement.

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

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

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

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

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

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

   "RESERVES" means, as of any date of determination, such amounts as Silicon 
may from time to time establish and revise in good faith reducing the amount 
of Loans, Letters of Credit and other financial accommodations which would 
otherwise be available to Borrower under the lending formula(s) provided in 
the Schedule: (a) to reflect events, conditions, contingencies or risks 
which, as determined by Silicon in good faith, do or may affect (i) the 
Collateral or any other property which is security for the Obligations or its 
value (including without limitation any increase in delinquencies of 
Receivables), (ii) the assets, business or prospects of Borrower or any 
Guarantor, or (iii) the security interests and other rights of Silicon in the 
Collateral (including the enforceability, perfection and priority thereof); 
or (b) to reflect Silicon's good faith belief that any collateral report or 
financial 

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         SILICON VALLEY BANK                  LOAN AND SECURITY AGREEMENT
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information furnished by or on behalf of Borrower or any Guarantor to Silicon 
is or may have been incomplete, inaccurate or misleading in any material 
respect; or (c) in respect of any state of facts which Silicon determines in 
good faith constitutes an Event of Default or may, with notice or passage of 
time or both, constitute an Event of Default.

   OTHER TERMS. All accounting terms used in this Agreement, unless otherwise 
indicated, shall have the meanings given to such terms in accordance with 
generally accepted accounting principles, consistently applied. All other 
terms contained in this Agreement, unless otherwise indicated, shall have the 
meanings provided by the Code, to the extent such terms are defined therein.

9. GENERAL PROVISIONS.

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

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

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

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

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

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

   9.7 INTEGRATION. This Agreement and such other written agreements, 
documents and instruments as may be executed in connection herewith are the 
final, entire and complete agreement between Borrower and Silicon and 
supersede all prior and contemporaneous negotiations and oral representations 
and agreements, all of which are merged and integrated in this Agreement. 
THERE ARE NO ORAL UNDERSTANDINGS, REPRESENTATIONS OR AGREEMENTS BETWEEN THE 
PARTIES WHICH ARE NOT SET FORTH IN THIS AGREEMENT OR IN OTHER WRITTEN 
AGREEMENTS SIGNED BY THE PARTIES IN CONNECTION HEREWITH.

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

   9.9 NO LIABILITY FOR ORDINARY NEGLIGENCE. Neither Silicon, nor any of its 
directors, officers, employees, agents, attorneys or any other Person 
affiliated with or representing Silicon shall be liable for any claims, 
demands, losses or damages, of any kind whatsoever, made, claimed, incurred 
or suffered by Borrower or any other party through the ordinary negligence of 
Silicon, or any of its directors, officers, employees, agents, attorneys or 
any other Person affiliated with or representing Silicon, but nothing herein 
shall relieve Silicon from liability for its own gross negligence or willful 
misconduct.

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

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

                                       10


         SILICON VALLEY BANK                  LOAN AND SECURITY AGREEMENT
      ________________________________________________________________________


   9.12 ATTORNEYS FEES AND COSTS. Borrower shall reimburse Silicon for all 
reasonable attorneys' fees and all filing, recording, search, title 
insurance, appraisal, audit, and other reasonable costs incurred by Silicon, 
pursuant to, or in connection with, or relating to this Agreement (whether or 
not a lawsuit is filed), including, but not limited to, any reasonable 
attorneys' fees and costs Silicon incurs in order to do the following: 
prepare and negotiate this Agreement and the documents relating to this 
Agreement; obtain legal advice in connection with this Agreement or Borrower; 
enforce, or seek to enforce, any of its rights; prosecute actions against, or 
defend actions by, Account Debtors; commence, intervene in, or defend any 
action or proceeding; initiate any complaint to be relieved of the automatic 
stay in bankruptcy; file or prosecute any probate claim, bankruptcy claim, 
third-party claim, or other claim; examine, audit, copy, and inspect any of 
the Collateral or any of Borrower's books and records; protect, obtain 
possession of, lease, dispose of, or otherwise enforce Silicon's security 
interest in, the Collateral; and otherwise represent Silicon in any 
litigation relating to Borrower. IN SATISFYING BORROWER'S OBLIGATION 
HEREUNDER TO REIMBURSE SILICON FOR ATTORNEYS FEES, BORROWER MAY, FOR 
CONVENIENCE, ISSUE CHECKS DIRECTLY TO SILICON'S ATTORNEYS, LEVY, SMALL & LALLAS, BUT BORROWER ACKNOWLEDGES AND AGREES THAT LEVY, SMALL & LALLAS IS 
REPRESENTING ONLY SILICON AND NOT BORROWER IN CONNECTION WITH THIS AGREEMENT. 
If either Silicon or Borrower files any lawsuit against the other predicated 
on a breach of this Agreement, the prevailing party in such action shall be 
entitled to recover its reasonable costs and attorneys' fees, including (but 
not limited to) reasonable attorneys' fees and costs incurred in the 
enforcement of, execution upon or defense of any order, decree, award or 
judgment. All attorneys' fees and costs to which Silicon may be entitled 
pursuant to this Paragraph shall immediately become part of Borrower's 
Obligations, shall be due on demand, and shall bear interest at a rate equal 
to the highest interest rate applicable to any of the Obligations.

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

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

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

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

   9.17 GOVERNING LAW; JURISDICTION; VENUE. This Agreement and all acts and 
transactions hereunder and all rights and obligations of Silicon and Borrower 
shall be governed by the laws of the State of California. As a material part 
of the consideration to Silicon to enter into this Agreement, Borrower (i) 
agrees that all actions and proceedings relating directly or indirectly to 
this Agreement shall, at Silicon's option, be litigated in courts located 
within California, and that the exclusive venue therefor shall be Santa Clara 
County; (ii) consents to the jurisdiction and venue of any such court and 
consents to service of process in any such action or proceeding by personal 
delivery or any other method permitted by law; and (iii) waives any and all 
rights Borrower may have to object to the jurisdiction of any such court, or 
to transfer or change the venue of any such action or proceeding.

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

                                       11


         SILICON VALLEY BANK                  LOAN AND SECURITY AGREEMENT
      ________________________________________________________________________


BORROWER:

      INVISION TECHNOLOGIES, INC.


         BY  /s/ Alfred V. Larrenaga
           ----------------------------------
              PRESIDENT OR VICE PRESIDENT



SILICON:

      SILICON VALLEY BANK


        BY   /s/ Milad I. Hanna
           ----------------------------------
        TITLE   Senior Vice President
              -------------------------------



                                       12




      ________________________________________________________________________


SILICON VALLEY BANK


                                   SCHEDULE TO

                           LOAN AND SECURITY AGREEMENT

BORROWER: INVISION TECHNOLOGIES, INC.
ADDRESS:       7151 GATEWAY BLVD.
               NEWARK, CALIFORNIA  94560


DATE:     NOVEMBER 8, 2000

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

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

EXIM AGREEMENT;
CROSS-COLLATERALIZATION;
CROSS-DEFAULT:                Silicon and the Borrower are parties to that 
                              certain Loan and Security Agreement (Exim 
                              Program) of even date herewith (as amended from 
                              time to time, the "Exim Agreement"). This 
                              Agreement and the Exim Agreement shall continue 
                              in full force and effect, and all rights and 
                              remedies under this Agreement and the Exim 
                              Agreement are cumulative. The term 
                              "Obligations" as used in this Agreement and the 
                              Exim Agreement shall include without limitation 
                              the obligation to pay when due all Loans made 
                              pursuant to this Agreement (the "Non-Exim 
                              Loans") and all interest thereon and the 
                              obligation to pay when due all Loans made 
                              pursuant to the Exim Agreement (the "Exim 
                              Loans") and all interest thereon. Without 
                              limiting the generality of the foregoing, all 
                              "Collateral" as defined in this Agreement and 
                              as defined in the Exim Agreement shall secure 
                              all Non-Exim Loans and all Exim Loans and all 
                              interest thereon, and all other Obligations 
                              relating thereto. Any Event of Default under 
                              this Agreement shall also constitute an Event 
                              of Default under the Exim Agreement and any 
                              Event of Default under the Exim Agreement shall 
                              also constitute an Event of Default under this 
                              Agreement. In the event Silicon assigns its 
                              rights under this Agreement and/or under any 
                              Note evidencing Non-Exim Loans, and/or its 
                              rights under the Exim Agreement and/or under 
                              any Note evidencing Exim Loans to any third 
                              party, including without limitation the 
                              Export-Import Bank of the United States ("Exim 
                              Bank"), whether before or after the occurrence 
                              of any Event of Default, Silicon shall have the 
                              right (but not any obligation), in its sole 
                              discretion, to allocate and apportion 
                              Collateral to the Agreement and/or Note 
                              assigned and to specify the priorities of the 
                              respective security interests in such 
                              Collateral between itself and the assignee, all 
                              without notice to or consent of the Borrower.

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

1. CREDIT LIMIT

(Section  1.1):               An amount equal to the sum of (A) and (B) below:



                                       1


         SILICON VALLEY BANK          SCHEDULE TO LOAN AND SECURITY AGREEMENT
      ________________________________________________________________________



                           A. Revolving Loans. An amount not to exceed the
                              lesser of: (i) $5,000,000 at any one time
                              outstanding (the "Maximum Revolving Credit
                              Limit"); or (ii) 80% of the amount of Borrower's
                              Eligible Receivables (as defined in Section 8
                              above), PLUS

                           B. Term Loans. An amount equal to the unpaid
                              principal balance from time to time outstanding of
                              Term Loan #1 and Term Loan #2 (as defined in the
                              Existing Loan Documents) (collectively, the "Term
                              Loans"). The current unpaid principal balance
                              outstanding of Term Loan #1 is $364,400, and the
                              current unpaid principal balance outstanding of
                              Term Loan #2 is $249,900.

LETTER OF CREDIT SUBLIMIT
(Section 1.5):                $5,000,000

FOREIGN EXCHANGE
CONTRACT SUBLIMIT:            If there is availability under the Revolving
                              Loans, then Borrower may enter into foreign
                              exchange forward contracts with Silicon under
                              which Borrower commits to purchase from or sell to
                              Silicon a set amount of foreign currency more than
                              one business day after the contract date (the "FX
                              Forward Contract"). Silicon will subtract 10% of
                              each outstanding FX Forward Contract from the
                              foreign exchange sublimit which is a maximum of
                              $5,000,000 (the "FX Sublimit"). The total FX
                              Forward Contracts at any one time may not exceed
                              10 times the amount of the FX Sublimit. Silicon
                              may terminate the FX Forward Contracts if an Event
                              of Default occurs.

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


2. INTEREST.

     INTEREST RATE (Section 1.2):

                              A rate equal to the "Prime Rate" in effect from
                              time to time, plus 1.5% per annum. Interest shall
                              be calculated on the basis of a 360-day year for
                              the actual number of days elapsed. "Prime Rate"
                              means the rate announced from time to time by
                              Silicon as its "prime rate;" it is a base rate
                              upon which other rates charged by Silicon are
                              based, and it is not necessarily the best rate
                              available at Silicon. The interest rate applicable
                              to the Obligations shall change on each date there
                              is a change in the Prime Rate.

                              With respect to each of Term Loan #1 and Term Loan
                              #2, the interest rate shall be a rate equal to the
                              Prime Rate in effect from time to time, plus 1.5%
                              per annum. Interest shall be calculated on the
                              basis of a 360-day year for the actual number of
                              days elapsed. The interest rate applicable to the
                              Obligations pertaining to the Term Loans shall
                              change on each date there is a change in the Prime
                              Rate.

     MINIMUM MONTHLY INTEREST (Section 1.2):  Not Applicable.

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

3. FEES (Section 1.4):


                                       2


         SILICON VALLEY BANK          SCHEDULE TO LOAN AND SECURITY AGREEMENT
      ________________________________________________________________________

================================================================================
     Loan Fee:                $37,500, payable concurrently herewith.

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

     Unused Line Fee:         Borrower shall pay Silicon an Unused Line Fee, in
                              addition to all interest and other fees payable
                              hereunder. The amount of the Unused Line Fee shall
                              be 0.125% per annum multiplied by an amount equal
                              to the Maximum Revolving Credit Limit minus the
                              average daily balance of the outstanding Revolving
                              Loans. The Unused Line Fee shall be computed and
                              paid monthly, in arrears (prorated for any partial
                              calendar month at the beginning and at termination
                              of this Agreement), and shall be due on the last
                              day of each calendar month.

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

4.  MATURITY DATE
     (Section 6.1):           October 20, 2001.

                              The outstanding principal balance of Term Loan #1
                              will continue to be repaid in monthly principal
                              payments of $11,041.72 each in accordance with the
                              terms of the Existing Loan Documents until the
                              earlier of: (i) June 29, 2003, (ii) all
                              Obligations related to Term Loan #1 have been
                              indefeasibly paid in full to Silicon or (iii) the
                              date this Agreement terminates by its terms or is
                              terminated by either party in accordance with its
                              terms. Interest on Term Loan #1 shall be payable
                              monthly as provided for in Section 1.2 of this
                              Agreement.

                              The outstanding principal balance of Term Loan #2
                              will continue to be repaid in monthly principal
                              payments of $17,846.62 each in accordance with the
                              terms of the Existing Loan Documents until the
                              earlier of: (i) November 29, 2001, (ii) all
                              Obligations related to Term Loan #2 have been
                              indefeasibly paid in full to Silicon or (iii) the
                              date this Agreement terminates by its terms or is
                              terminated by either party in accordance with its
                              terms. Interest on Term Loan #2 shall be payable
                              monthly as provided for in Section 1.2 of this
                              Agreement.

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

5.  FINANCIAL COVENANTS
     (Section 5.1):           Borrower shall comply with each of the following
                              covenant(s). Compliance shall be determined as of
                              the end of each month, except as otherwise
                              specifically provided below:

         MINIMUM TANGIBLE
         NET WORTH:           Borrower shall maintain a Tangible Net Worth of
                              not less than $32,000,000.

         DEFINITIONS.         For purposes of the foregoing financial covenants,
                              the following term shall have the following
                              meaning:

                              "Current assets", "current liabilities" and
                              "liabilities" shall have the meaning ascribed
                              thereto by generally accepted accounting
                              principles.



                                       3


         SILICON VALLEY BANK          SCHEDULE TO LOAN AND SECURITY AGREEMENT
      ________________________________________________________________________


                              "Tangible Net Worth" shall mean the excess of
                              total assets over total liabilities, determined in
                              accordance with generally accepted accounting
                              principles, with the following adjustments:

                                (A) there shall be excluded from assets: (i)
                                notes, accounts receivable and other obligations
                                owing to the Borrower from its officers or other
                                Affiliates, and (ii) all assets which would be
                                classified as intangible assets under generally
                                accepted accounting principles, including
                                without limitation goodwill, licenses, patents,
                                trademarks, trade names, copyrights, capitalized
                                software and organizational costs, licenses and
                                franchises

                                (B) there shall be excluded from liabilities:
                                all indebtedness which is subordinated to the
                                Obligations under a subordination agreement in
                                form specified by Silicon or by language in the
                                instrument evidencing the indebtedness which is
                                acceptable to Silicon in its discretion.

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

6. REPORTING. 
(Section 5.3):

                              Borrower shall provide Silicon with the following:

                              1.  Weekly transaction reports within two days
                                  after the end of each week, and a transaction
                                  report prior to each time Borrower requests a
                                  Loan.

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

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

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

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

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

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


                                       4


         SILICON VALLEY BANK          SCHEDULE TO LOAN AND SECURITY AGREEMENT
      ________________________________________________________________________


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

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

                              10. Annual financial statements, as soon as
                                  available, and in any event within 120 days
                                  following the end of Borrower's fiscal year,
                                  certified by independent certified public
                                  accountants acceptable to Silicon.

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

7. COMPENSATION
     (Section 5.5):               Not Applicable.

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

8. BORROWER INFORMATION:

      PRIOR NAMES OF
      BORROWER
      (Section 3.2):              See Representations and Warranties dated 
                                  September 21, 2000.

      PRIOR TRADE
      NAMES OF BORROWER
      (Section 3.2):              See Representations and Warranties dated 
                                  September 21, 2000.

      EXISTING TRADE
      NAMES OF BORROWER
      (Section 3.2):              See Representations and Warranties dated 
                                  September 21, 2000.

      OTHER LOCATIONS AND
      ADDRESSES (Section 3.3):    See Representations and Warranties dated 
                                  September 21, 2000.

      MATERIAL ADVERSE
      LITIGATION (Section 3.10):  None.


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

9. OTHER COVENANTS
   (Section 5.1):             Borrower shall at all times comply with all of the
                              following additional covenants:

                              (1) BANKING RELATIONSHIP. Borrower shall at all
                                  times maintain its primary banking
                                  relationship with Silicon.

                              (2) SUBORDINATION OF INSIDE DEBT. All present and
                                  future indebtedness of the Borrower to its
                                  officers, directors and shareholders ("Inside
                                  Debt") shall, at all times, be subordinated to
                                  the Obligations pursuant to a subordination
                                  agreement on Silicon's standard form. Borrower
                                  represents and warrants that there is no
                                  Inside Debt presently outstanding, except for
                                  the following: $0. Prior to incurring any 
                                  Inside Debt in the future, Borrower shall 
                                  cause the person to whom such Inside Debt will
                                  be owed to execute and deliver to Silicon a 
                                  subordination agreement on Silicon's standard
                                  form.


                                       5


         SILICON VALLEY BANK          SCHEDULE TO LOAN AND SECURITY AGREEMENT
      ________________________________________________________________________


                              (3) COPYRIGHT FILINGS. Within 30 days after the
                                  date hereof, Borrower shall request
                                  authorization from the Federal Aviation
                                  Administration ("FAA") permitting Borrower to
                                  register with the United States Copyright
                                  Office all of its unregistered software, the
                                  licensing of which results in Receivables. If
                                  the FAA authorizes such registration, Borrower
                                  shall then (i) execute and deliver to Silicon
                                  a Collateral Assignment, Patent Mortgage and
                                  Security Agreement between Borrower and
                                  Silicon (the "Intellectual Property
                                  Agreement") on Silicon's standard form
                                  identifying such Copyrights, (ii) cause the
                                  Intellectual Property Agreement to be filed in
                                  the Copyright Office, and (iii) provide
                                  evidence of such recordation to Silicon. If
                                  the FAA does not authorize such registration
                                  in writing due to the software being
                                  "sensitive security information" (as defined
                                  in 14 CFR Part 191), Borrower and Silicon
                                  shall then enter into an escrow agreement,
                                  license agreement and other related documents,
                                  all in form and substance satisfactory to
                                  Silicon, pursuant to which, among other
                                  things, Borrower will deposit in escrow the
                                  Borrower's unregistered copyrights to which
                                  Silicon shall have access and the right to
                                  utilize under the circumstances set forth in
                                  the escrow agreement, license agreement or
                                  other related documents.

                              (4) PATENT FILINGS. Within thirty (30) days of the
                                  date hereof, Borrower shall (i) complete the
                                  Exhibits to the Intellectual Property
                                  Agreement with all of the information called
                                  for with respect to all patents and patent
                                  applications submitted by Borrower to the U.S.
                                  Patent and Trademark Office, (ii) cause such
                                  Intellectual Property Agreement to be filed in
                                  the United States Patent and Trademark Office,
                                  and (iii) provide evidence of such recordation
                                  to Silicon.

                              (5) TRADEMARK FILINGS. Within thirty (30) days of
                                  the date hereof, Borrower shall complete the
                                  Exhibits to the Intellectual Property
                                  Agreement with all of the information called
                                  for with respect to all trademarks and
                                  trademark applications submitted by Borrower
                                  to the U.S. Patent and Trademark Office.

                              (6) TRANSACTIONS WITH SUBSIDIARIES. Borrower
                                  agrees that the aggregate amount of all
                                  expenses Borrower incurs on behalf of its
                                  subsidiaries plus the aggregate amount of
                                  money or other assets Borrower loans and/or
                                  transfers to its subsidiaries shall not at
                                  anytime exceed $500,000 during the term of
                                  this Agreement. The preceding shall not
                                  include any such expenses, loans and/or
                                  transfers incurred or made prior to the date
                                  of this Agreement.



                                       6


         SILICON VALLEY BANK          SCHEDULE TO LOAN AND SECURITY AGREEMENT
      ________________________________________________________________________


Borrower:                                            Silicon:
  INVISION TECHNOLOGIES, INC.                        SILICON VALLEY BANK


  By   /s/ Alfred V. Larrenaga                    By   /s/ Milad I. Hanna
     -----------------------------                   --------------------------
     President or Vice President                  Title   Senior Vice President
                                                        -----------------------




-4





                                       7