FIFTH AMENDMENT
TO
LOAN AND SECURITY AGREEMENT

          This Fifth Amendment to Loan and Security Agreement is entered into as
of August 13, 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, that certain Third Amendment to Loan and
Security Agreement dated as of December 21, 2001, and that certain Fourth
Amendment to Loan and Security Agreement dated as of July 2, 2002 (collectively,
the “Agreement”).  The parties desire to amend the Agreement in accordance with
the terms of this Amendment.

          NOW, THEREFORE, the parties agree as follows:

 

1.

Borrowers may not request or receive any further Credit Extensions until October
16, 2002.

 

 

 

 

2.

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

 

 

 

 

 

“6.9          Minimum Cash.  Borrowers shall at all times maintain with Bank (or
Comerica Securities, Inc. or Munder Capital) cash and cash equivalents in a
minimum aggregate amount of Seven Million Dollars ($7,000,000).”

 

 

 

 

3.

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 October
15, 2002 maintain a Tangible Net Worth of not less than Forty Two Million
Dollars ($42,000,000).  At all times after October 15, 2002, Borrowers shall
maintain a Tangible Net Worth of not less than Forty Eight Million Dollars
($48,000,000).”

 

 

 

 

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 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.

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

          (c)       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

 

 

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MAXWELL ELECTRONIC COMPONENTS GROUP,
INC.

 

 

 

By: /s/ Donald M. Roberts

 

 

 

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Title: Vice President

 

 

 

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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

 

 

 

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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

 

Fixed Charge Coverage Ratio (beginning 12/31/02)

 

2.00:1.00

 

_____:1.00

 

Yes

No

Maintain at all Times:

 

 

 

 

 

 

 

 

Minimum Cash

 

$7,000,000

 

$________

 

Yes

No

 

Minimum Tangible Net Worth (through 10/15/02)

 

$42,000,000

 

$________

 

Yes

No

 

Minimum Tangible Net Worth (beginning 10/16/02)

 

$48,000,000

 

$________

 

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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