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Boulter and Glatthaar formed H-Cap and Evercrete Delaware (collectively "H-Cap defendants") to legitimize their fraudulent scheme to deceive the trade into believing that their product was "genuine EVECRETE concrete sealant" made according to the 1918 Formula. Plaintiffs allege that the H—Cap defendants have used the mail and wires to obtain trademark registrations and to sell their products under the false pretense that H—Cap has rights to the Evercrete brand.

Raymond Willis and Evercrete New York bring this action alleging trademark infringement, conversion, unjust enrichment, common law fraud, and mail and wire fraud in violation of the Racketeering Influenced and Corrupt Organizations Act ("RICO").

1.3 "ADVANCE" means each installment made by the Lender to Borrower pursuant to the Loan to be evidenced by the Note(s) secured by the Collateral.

1.4 "ADVANCE DATE" means the funding date of any Advance of the Loan. "ADVANCE REQUEST" means the request by Borrower for an Advance under the Loan, each to be substantially in the form of Exhibit C attached hereto, as submitted by Borrower to Lender from time to time.

SUBORDINATED LOAN AND SECURITY AGREEMENT THIS AGREEMENT (the "Agreement"), dated as of January 21, 1999, is entered into by and between Packeteer, Inc., a Delaware corporation, with its chief executive office, and principal place of business located at 10495 North De Anza Boulevard, Cupertino, California 95014 (the "Borrower") and Comdisco, Inc., a Delaware corporation, with its principal place of business located at 6111 North River Road, Rosemont, Illinois 60018 (the "Lender" or sometimes, "Comdisco").

In consideration of the mutual agreements contained herein, the parties hereto agree as follows: RECITALS WHEREAS, Borrower has requested Lender to make available to Borrower a loan in the aggregate principal amount of TWO MILLION FIVE HUNDRED THOUSAND and 00/100 DOLLARS (,500,000.00) in minimum installments of FIVE HUNDRED THOUSAND DOLLARS (0,000.00) each (as the same may from time to time be amended, modified, supplemented or revised, the "Loan"), which would be evidenced by Subordinated Promissory Note(s) executed by Borrower substantially in the form of Exhibit A hereto (as the same may from time to time be amended, modified, supplemented or restated the "Note(s)").

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