FOURTH AMENDMENT
TO
LOAN AND SECURITY AGREEMENT

          This Fourth Amendment to Loan and Security Agreement is entered into
as of July 2, 2002 (the “Amendment”), by and between COMERICA BANK-CALIFORNIA
(“Bank”) and MAXWELL TECHNOLOGIES, INC., MAXWELL ELECTRONIC COMPONENTS GROUP,
INC., I-BUS/PHOENIX, INC., PUREPULSE TECHNOLOGIES, INC., and MML ACQUISITION
CORP. (individually, a “Borrower” and collectively, the “Borrowers”).

RECITALS

          Borrowers and Bank are parties to that certain Loan and Security
Agreement dated as of February 26, 2001, as amended from time to time, including
but not limited to by that certain Amendment to Loan and Security Agreement
dated as of May 25, 2001, that certain Second Amendment to Loan and Security
Agreement dated as of June 18, 2001, and that certain Third Amendment to Loan
and Security Agreement dated as of December 21, 2001 (collectively, the
“Agreement”).  The parties desire to amend the Agreement in accordance with the
terms of this Amendment.

          Borrower has entered into an agreement (the “Purchase Agreement”) with
Montena Components Ltd. (“Montena”) pursuant to which, among other things,
Borrower will acquire the issued and outstanding stock of Montena (the “Montena
Stock”) for 2,550,000 shares of Borrower’s common stock, all as more
particularly described in the Purchase Agreement.  Borrower has requested that
Bank permit the consummation by the Borrower of the Purchase Agreement, and Bank
has agreed to the same provided Borrower agrees to the terms of this Amendment.

          NOW, THEREFORE, the parties agree as follows:

 

1.

Section 6.9 of the Agreement hereby is amended in its entirety as follows:

 

 

 

 

 

“6.9     Cash-Total Bank Obligations.  Borrowers shall at all times through
August 15, 2002 maintain a ratio of Cash (defined as cash and cash equivalents
held at Bank, Comerica Securities, and Munder Capital) to total Obligations
owing Bank of at least 1.50 to 1.00.  Borrowers shall at all times from and
after August 16, 2002 and through September 30, 2002, maintain a ratio of Cash
(defined as cash and cash equivalents held at Bank, Comerica Securities, and
Munder Capital) to total Obligations owing Bank of at least 2.00 to 1.00.”

 

 

 

 

2.

Section 6.10 of the Agreement hereby is amended in its entirety as follows:

 

 

 

 

 

“6.10     Tangible Net Worth.  Borrowers shall at all times through August 15,
2002 maintain a Tangible Net Worth of not less than Forty Two Million Dollars
($42,000,000).  Borrowers shall at all times from and after August 16, 2002 and
through September 30, 2002, maintain a Tangible Net Worth of not less than Forty
Eight Million Dollars ($48,000,000).”

          3.         Bank consents to the execution and performance by Borrower
of the Purchase Agreement.  Specifically, Bank waives Section 7.3 of the
Agreement only to the extent such section otherwise prohibits the Purchase
Agreement and or the transactions contemplated thereby.

          4.         Exhibit D to the Agreement hereby is replaced with Exhibit
D hereto.

          5.         Unless otherwise defined, all initially capitalized terms
in this Amendment shall be as defined in the Agreement.  The Agreement, as
amended hereby, shall be and remain in full force and effect in accordance
with its respective terms and hereby is ratified and confirmed in all respects. 
Except as expressly set forth herein, the execution, delivery, and performance
of this Amendment shall not operate as a waiver of, or as an amendment

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of, any right, power, or remedy of Bank under the Agreement, as in effect prior
to the date hereof.  Each Borrower ratifies and reaffirms the continuing
effectiveness of all promissory notes, guaranties, security agreements,
mortgages, deeds of trust, environmental agreements, and all other instruments,
documents and agreements entered into in connection with the Agreement.

          6.          Each Borrower represents and warrants that the
representations and warranties contained in the Agreement are true and correct
as of the date of this Amendment, and that no Event of Default has occurred and
is continuing.

          7.          This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one instrument.

          8.          As a condition to the effectiveness of this Amendment,
Bank shall have received, in form and substance satisfactory to Bank, the
following:

          (a)         This Amendment, duly executed by the Borrowers;

          (b)         The certificate for the Shares of Montena Stock,
accompanied by an instrument of assignment duly executed in blank by the
appropriate Borrower, in the forms attached hereto;

          (c)         An amount equal to all Bank Expenses incurred to date; and

          (d)         Such other documents, and completion of such other
matters, as Bank may reasonably deem necessary or appropriate.

          IN WITNESS WHEREOF, the undersigned have executed this Amendment as of
the first date above written.

 

MAXWELL TECHNOLOGIES, INC.

 

 

 

 

 

By: /s/ Donald M. Roberts

 

 

 

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Title: Vice President

 

 

 

 

 

 

 

 

 

MAXWELL ELECTRONIC COMPONENTS GROUP,
INC.

 

 

 

 

By: /s/ Donald M. Roberts

 

 

 

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Title: Vice President

 

 

 

 

 

 

 

 

 

I-BUS/PHOENIX, INC.

 

 

 

 

 

By: /s/ Donald M. Roberts

 

 

 

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Title: Vice President

 

 

 

 

 

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PUREPULSE TECHNOLOGIES, INC.

 

 

 

 

 

By: /s/ Donald M. Roberts

 

 

 

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Title: Vice President

 

 

 

 

 

 

 

 

 

MML ACQUISITION CORP.

 

 

 

 

 

By: /s/ Donald M. Roberts

 

 

 

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Title: Vice President

 

 

 

 

 

 

 

 

 

COMERICA BANK-CALIFORNIA

 

 

 

 

 

By: /s/ [Illegible]

 

 

 

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Title: Vice President

 

 

 

 

 

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EXHIBIT D
COMPLIANCE CERTIFICATE

TO:

COMERICA BANK-CALIFORNIA

 

 

FROM:

MAXWELL TECHNOLOGIES, INC., MAXWELL ELECTRONIC COMPONENTS GROUP, INC.,
I-BUS/PHOENIX, INC., PUREPULSE TECHNOLOGIES, INC., MAXWELL TECHNOLOGIES SYSTEMS
DIVISION, INC., MML ACQUISITION CORP.

          The undersigned authorized officer of MAXWELL TECHNOLOGIES, INC.
(“Parent”) on behalf of Parent and MAXWELL ELECTRONIC COMPONENTS GROUP, INC.,
I-BUS/PHOENIX, INC., PUREPULSE TECHNOLOGIES, INC., MAXWELL TECHNOLOGIES SYSTEMS
DIVISION, INC., MML ACQUISITION CORP. (collectively, “Borrowers”) hereby
certifies that in accordance with the terms and conditions of the Loan and
Security Agreement between Borrowers and Bank (the “Agreement”), (i) Borrower(s)
are in complete compliance for the period ending ___________________ with all
required covenants except as noted below and (ii) all representations and
warranties of Borrowers stated in the Agreement are true and correct in all
material respects as of the date hereof.  Attached herewith are the required
documents supporting the above certification.  The Officer further certifies
that these are prepared in accordance with Generally Accepted Accounting
Principles (GAAP) and are consistently applied from one period to the next
except as explained in an accompanying letter or footnotes.

 

Please indicate compliance status by circling Yes/No under “Complies” column.

 

Reporting Covenant

 

Required

 

Complies

 

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Monthly financial statements

 

Monthly within 30 days

 

Yes

No

 

Quarterly financial statements

 

Quarterly within 45 days

 

Yes

No

 

Annual (CPA Audited)

 

FYE within 90 days

 

Yes

No

 

10K & 10Q

 

within 5 days of filing

 

Yes

No

 

A/R & A/P Agings

 

Quarterly beginning 12/31/02 within 45 days

 

Yes

No

 

A/R Audit

 

Initial and Annual

 

Yes

No

 

IP Report

 

Within 30 days of 2/1 and 8/1

 

Yes

No

 

Financial Covenant

 

Required

 

Actual

 

Complies

 

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Maintain on a Quarterly Basis:

 

 

 

 

 

 

 

 

 

Minimum Quick Ratio (beginning 12/31/02)

 

1.35:1.00

 

_____:1.00

 

Yes

No

 

 

Minimum Cash to Bank Debt (through 8/15/02; monitored continuously)

 

1.50:1.00

 

_____:1.00

 

Yes

No

 

 

Minimum Cash to Bank Debt (from 8/16/02 through 9/30/02; monitored monthly)

 

2.00:1.00

 

_____:1.00

 

Yes

No

 

 

Minimum Tangible Net Worth (through 8/15/02; monitored continuously)

 

$ 42,000,000

 

$ _______

 

Yes

No

 

 

Minimum Tangible Net Worth (from 8/16/02 through 9/30/02; monitored monthly)

 

$ 48,000,000

 

$ _______

 

Yes

No

 

 

Fixed Charge Coverage Ratio

 

2.00:1.00

 

_____:1.00

 

Yes

No

Comments Regarding Exceptions:  See Attached.

 

BANK USE ONLY

 

 

 

 

 

 

 

Received by:

 

 

 

 

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Sincerely,

 

                                   AUTHORIZED SIGNER

 

 

 

Date:

 

 

 

 

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Verified:

 

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SIGNATURE

 

                                   AUTHORIZED SIGNER

 

 

 

 

 

 

 

Date:

 

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TITLE

 

 

 

 

 

 

Compliance Status

          Yes

          No

 

DATE

 

 

 

 

 

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ASSIGNMENT SEPARATE FROM CERTIFICATE

          FOR VALUE RECEIVED the undersigned does hereby sell, assign and
transfer unto
___________________________________________________________________________
___________________________________ (______________) shares of the Capital Stock
of

Montena Components Ltd. standing in the undersigned’s name on the books of said
corporation represented by Certificate No._______________ herewith and does
hereby irrevocably constitute and appoint _____________________________
attorney-in-fact to transfer the said stock on the books of said corporation
with full power of substitution in the premises.

Dated: July 2, 2002

MAXWELL TECHNOLOGIES, INC.

 

 

 

 

 

By: /s/ Donald M. Roberts

 

 

 

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Printed Name: Donald M. Roberts

 

 

 

 

 

 

Title: Vice President

 

 

 

 

 

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ASSIGNMENT SEPARATE FROM CERTIFICATE

          FOR VALUE RECEIVED the undersigned does hereby sell, assign and
transfer unto
___________________________________________________________________________
___________________________________ (______________) shares of the Capital Stock
of

Montena Components Ltd. standing in the undersigned’s name on the books of said
corporation represented by Certificate No._______________ herewith and does
hereby irrevocably constitute and appoint _____________________________
attorney-in-fact to transfer the said stock on the books of said corporation
with full power of substitution in the premises.

Dated: July 2, 2002

MAXWELL TECHNOLOGIES, INC.

 

 

 

 

 

By: /s/ Donald M. Roberts

 

 

 

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Printed Name: Donald M. Roberts

 

 

 

 

 

 

Title: Vice President

 

 

 

 

 

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RECEIPT

                    The undersigned, Comerica Bank-California, acknowledges
receipt of the original certificate number 000001 representing 99,995 shares of
the capital stock of Montena Components issued in the name of Maxwell
Technologies, Inc. and dated July 1, 2002. This certificate is being held under
the terms of that certain Loan and Security Agreement dated as of February 26,
2001, as amended by the First through Fourth Amendments thereto.

 

Comerica Bank-California

 

 

 

 

Date  7/24/02

 

 

 

 

 

By [illegible]

 

 

 

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Title Vice President

 

 

 

 

 

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