Exhibit 10.42

                            CHANGE IN TERMS AGREEMENT

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
<S>            <C>            <C>          <C>          <C>     <C>                 <C>         <C>
Principal      Loan date      Maturity      Loan No     Call    Collateral Account  Officer     Initials
$7,000,000.00  11-29-2001     02-15-2000   115-20091                                  SC
----------------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
          References in the shaded area are for Lender's use only and
               do not limit the applicability of this document to
                          any particular loan or item.
               Any item above containing "****" has been omitted
                        due to text length limitations.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Borrower:  Integrated Packaging Assembly Corporation (TIN:
           77-0309372)
           2221 Old Oakland Road
           San Jose, CA 95131

Lender:    Bank SinoPac, Los Angeles Branch
           350 South. Grand Ave.  Suite 3070
           Los Angeles CA 90071
--------------------------------------------------------------------------------

THIS BUSINESS LOAN AGREEMENT dated November 29, 2000, is made and executed
between Integrated Packaging Assembly Corporation; and OSE, Inc. ("Borrower")
and Bank SinoPac, Los Angeles Branch ("Lender") on the following terms and
conditions. Borrower has received prior commercial loans from Lender or has
applied to Lender for a commercial loan or loans or other financial
accommodations, including those which may be described on any exhibit or
schedule attached to this Agreement ("Loan"). Borrower understands and agrees
that: (A) in granting, renewing, or extending any Loan, Lender is relying upon
Borrower's representations, warranties, and agreements as set forth in this
Agreement, and (B) all such Loans shall be and remain subject to the terms and
conditions of this Agreement.

TERM. This Agreement shall be effective as of November 29, 2000, and shall
continue in full force and effect until such time as all of Borrower's Loans in
favor of Lender have been paid in full, including principal, interest, costs,
expenses, attorneys' fees, and other fees and charges, or until February 15,
2001.

CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make the
initial Advance and each subsequent Advance under this Agreement shall be
subject to the fulfillment to Lender's satisfaction of all of the conditions set
forth in this Agreement and in the Related Documents.

     Loan Documents. Borrower shall provide to Lender the following documents
     for the Loan: (1) the Note; (2) Security Agreements granting to Lender
     security interests in the Collateral; (3) financing statements perfecting
     Lender's Security Interests; (4) evidence of insurance as required below;
     (5) guaranties; (6) together with all such Related Documents as Lender may
     require for the Loan; all in form and substance satisfactory to Lender and
     Lender's counsel.

     Borrower's Authorization. Borrower shall have provided in form and
     substance satisfactory to Lender properly certified resolutions, duly
     authorizing the execution and delivery of this Agreement, the Note and the
     Related Documents. In addition, Borrower shall have provided such other
     resolutions, authorizations, documents and instruments as Lender or its
     counsel, may require.

     Payment of Fees and Expenses. Borrower shall have paid to Lender all fees,
     charges, and other expenses which are then due and payable as specified in
     this Agreement or any Related Document.

     Representations and Warranties. The representations and warranties set
     forth in this Agreement, in the Related Documents, and in any document or
     certificate delivered to Lender under this Agreement are true and correct.

     No Event of Default. There shall not exist at the time of any Advance a
     condition which would constitute an Event of Default under this Agreement
     or under any Related Document.

MULTIPLE BORROWERS. This Agreement has been executed by multiple obligors who
are referred to in this Agreement individually, collectively and interchangeably
as "Borrower." Unless specifically stated to the contrary, the word "Borrower"
as used in this Agreement, including without limitation all representations,
warranties and covenants, shall include all Borrowers. Borrower understands and
agrees that, with or without notice to any one Borrower, Lender may (A) make one
or more additional secured or unsecured loans or otherwise extend additional
credit with respect to any other Borrower; (B) with respect to any other
Borrower alter, compromise, renew, extend, accelerate, or otherwise change one
or more times the time for payment or other terms of any indebtedness, including
increases and decreases of the rate of interest on the indebtedness; (C)
exchange, enforce, waive, subordinate, fail or decide not to perfect, and
release any security, with or without the substitution of new collateral; (D)
release, substitute, agree not to sue, or deal with any one or more of
Borrower's or any other Borrower's sureties, endorsers, or other guarantors on
any terms or in any manner Borrower may choose; (E) determine how, when and what
application of payments and credits shall be made on any indebtedness; (F) apply
such security and direct the order or manner of sale of any Collateral,
including without limitation, any non-judicial sale permitted by the terms of
the controlling security agreement or deed of trust, as Lender in its discretion
may determine; (G) sell, transfer, assign or grant participations in all or any
part of the Loan; (H) exercise or refrain from exercising any rights against
Borrower or others, or otherwise act or refrain from acting; (I) settle or
compromise any indebtedness; and (J) subordinate the payment of all or any part
of any of Borrower's indebtedness to Lender to the payment of any liabilities
which may be due Lender or others.

REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as
of the date of this Agreement, as of the date of each disbursement of loan
proceeds, as of the date of any renewal, extension or modification of any Loan,
and at all times any Indebtedness exists:

     Organization. Integrated Packaging Assembly Corporation is a corporation
     for profit which is, and at all times shall be, duly organized, validly
     existing, and in good standing under and by virtue of the laws of the State
     of Delaware. Integrated Packaging Assembly Corporation is duly authorized
     to transact business in the State of California and all other states in
     which Integrated Packaging Assembly Corporation is doing business, having
     obtained all necessary filings, governmental licenses and approvals for
     each state in which Integrated Packaging Assembly Corporation is doing
     business. Specifically, Integrated Packaging Assembly Corporation is, and
     at all times shall be, duly qualified as a foreign corporation in all
     states in which the failure to so qualify would have a material adverse
     effect on its business or financial condition. Integrated Packaging
     Assembly Corporation has the full power and authority to own its properties
     and to transact the business in which it is presently engaged or presently
     proposes to engage. Integrated Packaging Assembly Corporation maintains its
     principle office at 2221 Old Oakland Road, San Jose, CA 95131. Unless
     Integrated Packaging Assembly Corporation has designated otherwise in
     writing, this is the principle office at which Integrated Packaging
     Assembly Corporation keeps its books and records including its records
     concerning the Collateral. Integrated Packaging Assembly Corporation will
     notify Lender of any change in the location of Integrated Packaging
     Assembly Corporation's principle office. Integrated Packaging Assembly
     Corporation shall do all things necessary to preserve and to keep in full
     force and effect its existence, rights and privileges, and shall comply
     with all regulations, rules, ordinances, statutes, orders and decrees of
     any governmental or quasi-governmental authority or court applicable to
     Integrated Packaging Assembly Corporation and Integrated Packaging Assembly
     Corporation's business activities. OSE, Inc. is a corporation for profit
     which is, and at all times shall be, duly organized, validly existing, and
     in good standing under and by virtue of the laws of the State of
     California. OSE, Inc. is duly authorized to transact business in all other
     states in which OSE, Inc. is doing business, having obtained all necessary
     filings, governmental licenses and approvals for each state in which OSE,
     Inc. is doing business. Specifically, OSE, Inc. is, and at all times shall
     be, duly qualified as a foreign corporation in all states in which the
     failure to so qualify would have a material adverse effect on its business
     or financial condition. OSE, Inc. has the full power and authority to own
     its properties and to transact the business in which it is presently
     engaged or presently proposes to engage. OSE, Inc. maintains its principle
     office at 2221 Old Oakland Road, San Jose, CA 95131. Unless OSE, Inc. has
     designated otherwise in writing, this is the principle office at which OSE,
     Inc. keeps its books and records including its records concerning

<PAGE>

                             BUSINESS LOAN AGREEMENT
                                   (Continued)                            Page 2
================================================================================

     the Collateral. OSE, Inc. will notify Lender of any change in the location
     of OSE, Inc.'s principle office. OSE, Inc. shall do all things necessary to
     preserve and to keep in full force and effect its existence, rights and
     privileges, and shall comply with all regulations, rules, ordinances,
     statutes, orders and decrees of any governmental or quasi-governmental
     authority or court applicable to OSE, Inc. and OSE, Inc.'s business
     activities.

     Assumed Business Names. Borrower has filed or recorded all documents or
     filings required by law relating to all assumed business names used by
     Borrower. Excluding the name of Borrower, the following is a complete list
     of all assumed business names under which Borrower does business: None.

     Authorization. Borrower's execution, delivery, and performance of this
     Agreement and all the Related Documents have been duly authorized by all
     necessary action by Borrower and do not conflict with, result in a
     violation of, or constitute a default under (1) any provision of OSE,
     Inc.'s articles of incorporation or organization, or bylaws, or any
     agreement or other instrument binding upon Borrower or (2) any law,
     governmental regulation, court decree, or order applicable to Borrower or
     to Borrowers properties.

     Financial Information. Each of Borrower's financial statements supplied to
     Lender truly and completely disclosed Borrower's financial condition as of
     the date of the statement, and there has been no material adverse change in
     Borrower's financial condition subsequent to the date of the most recent
     financial statement supplied to Lender. Borrower has no material contingent
     obligations except as disclosed in such financial statements.

     Legal Effect. This Agreement constitutes, and any instrument or agreement
     Borrower is required to give under this Agreement when delivered will
     constitute legal, valid, and binding obligations of Borrower enforceable
     against Borrower in accordance with their respective terms.

     Properties. Except as contemplated by this Agreement or as previously
     disclosed in Borrower's financial statements or in writing to Lender and as
     accepted by Lender, and except for property tax liens for taxes not
     presently due and payable, Borrower owns and has good title to all of
     Borrower's properties free and clear of all Security Interests, and has not
     executed any security documents or financing statements relating to such
     properties. All of Borrower's properties are titled in Borrower's legal
     name, and Borrower has not used, or filed a financing statement under, any
     other name for at least the last five (5) years.

     Hazardous Substances. Except as disclosed to and acknowledged by Lender in
     writing, Borrower represents and warrants that: (1) During the period of
     Borrower's ownership of Borrower's Collateral, there has been no use,
     generation, manufacture, storage, treatment, disposal, release or
     threatened release of any Hazardous Substance by any person on, under,
     about or from any of the Collateral. (2) Borrower has no knowledge of, or
     reason to believe that there has been (a) any breach or violation of any
     Environmental Laws; (b) any use, generation, manufacture, storage,
     treatment, disposal, release or threatened release of any Hazardous
     Substance on, under, about or from the Collateral by any prior owners or
     occupants of any of the Collateral; or (c) any actual or threatened
     litigation or claims of any kind by any person relating to such matters.
     (3) Neither Borrower nor any tenant, contractor, agent or other authorized
     user of any of the Collateral shall use, generate, manufacture, store,
     treat, dispose of or release any Hazardous Substance on, under, about or
     from any of the Collateral; and any such activity shall be conducted in
     compliance with all applicable federal, state, and local laws, regulations,
     and ordinances, including without limitation all Environmental Laws.
     Borrower authorizes Lender and its agents to enter upon the Collateral to
     make such inspections and tests as Lender may deem appropriate to determine
     compliance of the Collateral with this section of the Agreement. Any
     inspections or tests made by Lender shall be at Borrower's expense and for
     Lender's purposes only and shall not be construed to create any
     responsibility or liability on the part of Lender to Borrower or to any
     other person. The representations and warranties contained herein are based
     on Borrower's due diligence in investigating the Collateral for hazardous
     waste and Hazardous Substances. Borrower hereby (1) releases and waives any
     future claims against Lender for indemnity or contribution in the event
     Borrower becomes liable for cleanup or other costs under any such laws, and
     (2) agrees to indemnify and hold harmless Lender against any and all
     claims, losses, liabilities, damages, penalties, and expenses which Lender
     may directly or indirectly sustain or suffer resulting from a breach of
     this section of the Agreement or as a consequence of any use, generation,
     manufacture, storage, disposal, release or threatened release of a
     hazardous waste or substance on the Collateral. The provisions of this
     section of the Agreement, including the obligation to indemnity, shall
     survive the payment of the Indebtedness and the termination, expiration or
     satisfaction of this Agreement and shall not be affected by Lender's
     acquisition of any interest in any of the Collateral, whether by
     foreclosure or otherwise.

     Litigation and Claims. No litigation, claim, investigation, administrative
     proceeding or similar action (including those for unpaid taxes) against
     Borrower is pending or threatened, and no other event has occurred which
     may materially adversely affect Borrower's financial condition or
     properties, other than litigation, claims, or other events, if any, that
     have been disclosed to and acknowledged by Lender in writing.

     Taxes. To the best of Borrower's knowledge, all of Borrowers tax returns
     and reports that are or were required to be filed, have been filed, and all
     taxes, assessments and other governmental charges have been paid in full,
     except those presently being or to be contested by Borrower in good faith
     in the ordinary course of business and for which adequate reserves have
     been provided.

     Lien Priority. Unless otherwise previously disclosed to Lender in writing,
     Borrower has not entered into or granted any Security Agreements, or
     permitted the filing or attachment of any Security Interests on or
     affecting any of the Collateral directly or indirectly securing repayment
     of Borrower's Loan and Note, that would be prior or that may in any way be
     superior to Lender's Security Interests and rights in and to such
     Collateral.

     Binding Effect. This Agreement, the Note, all Security Agreements (if any),
     and all Related Documents are binding upon the signers thereof, as well as
     upon their successors, representatives and assigns, and are legally
     enforceable in accordance with their respective terms.

AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, so long
as this Agreement remains in effect, Borrower will:

     Notices of Claims and Litigation. Promptly inform Lender in writing of (1)
     all material adverse changes in Borrowers financial condition, and (2) all
     existing and all threatened litigation, claims, investigations,
     administrative proceedings or similar actions affecting Borrower or any
     Guarantor which could materially affect the financial condition of Borrower
     or the financial condition of any guarantor.

     Financial Records. Maintain its books and records in accordance with GAAP,
     applied on a consistent basis, and permit Lender to examine and audit
     Borrower's books and records at all reasonable times.

     Financial Statements. Furnish Lender with the following:

          Annual Statements. As soon as available, but in no event later than
          ninety (90) days after the end of each fiscal year, Borrower's balance
          sheet and income statement for the year ended, audited by a certified
          public accountant satisfactory to Lender.

          Interim Statements. As soon as available, but in no event later than
          45 days after the end of each fiscal quarter, Borrowers balance sheet
          and profit and loss statement for the period ended, prepared by
          Borrower.

          Additional Requirements. Monthly accounts receivable aging report and
          accounts payable report to be provided within 15 days of each month
          end.

     All financial reports required to be provided under this Agreement shall be
     prepared in accordance with GAAP, applied on a consistent basis, and
     certified by Borrower as being true and correct.

     Additional Information.  Furnish such aditional information and statements
     from time to time.

<PAGE>

                             BUSINESS LOAN AGREEMENT
                                   (Continued)                            Page 3

   Insurance. Maintain fire and other risk insurance, public liability
   insurance, and such other insurance as Lender may require with respect to
   Borrower's properties and operations, in form, amounts, coverages and with
   insurance companies acceptable to Lender. Borrower, upon request of Lender,
   will deliver to Lender from time to time the policies or certificates of
   insurance in form satisfactory to Lender, including stipulations that
   coverages will not be cancelled or diminished without at least ten (10) days
   prior written notice to Lender. Each insurance policy also shall include an
   endorsement providing that coverage in favor of Lender will not be impaired
   in any way by any act, omission or default of Borrower or any other person.
   In connection with all policies covering assets in which Lender holds or is
   offered a security interest for the Loans, Borrower will provide Lender with
   such lender's loss payable or other endorsements as Lender may require.

   Insurance Reports. Furnish to Lender, upon request of Lender, reports on each
   existing insurance policy showing such information as Lender may reasonably
   request, including without limitation the following: (1) the name of the
   insurer; (2) the risks insured; (3) the amount of the policy; (4) the
   properties insured; (5) the then current property values on the basis of
   which insurance has been obtained, and the manner of determining those
   values; and (6) the expiration date of the policy. In addition, upon request
   of Lender (however not more often than annually), Borrower will have an
   independent appraiser satisfactory to Lender determine, as applicable, the
   actual cash value or replacement cost of any Collateral. The cost of such
   appraisal shall be paid by Borrower.

   Guaranties. Prior to disbursement of any Loan proceeds, furnish executed
   guaranties of the Loans in favor of Lender, executed by the guarantor named
   below, on Lender's forms, and in the amount and under the conditions set
   forth in those guaranties.

            Name of Guarantor                                           Amount
            -----------------                                           ------
            Orient Semiconductor Electronics, Ltd.   100.000% of $7,000,000.00

   Other Agreements. Comply with all terms and conditions of all other
   agreements, whether now or hereafter existing, between Borrower and any other
   party and notify Lender immediately in writing of any default in connection
   with any other such agreements.

   Loan Proceeds. Use all Loan proceeds solely for Borrower's business
   operations, unless specifically consented to the contrary by Lender in
   writing.

   Taxes, Charges and Liens. Pay and discharge when due all of its indebtedness
   and obligations, including without limitation all assessments, taxes,
   governmental charges, levies and liens, of every kind and nature, imposed
   upon Borrower or its properties, income, or profits, prior to the date on
   which penalties would attach, and all lawful claims that, if unpaid, might
   become a lien or charge upon any of Borrower's properties, income, or
   profits.

   Performance. Perform and comply, in a timely manner, with all terms,
   conditions, and provisions set forth in this Agreement, in the Related
   Documents, and in all other instruments and agreements between Borrower and
   Lender. Borrower shall notify Lender immediately in writing of any default in
   connection with any agreement.

   Operations. Maintain executive and management personnel with substantially
   the same qualifications and experience as the present executive and
   management personnel; provide written notice to Lender of any change in
   executive and management personnel; conduct its business affairs in a
   reasonable and prudent manner.

   Environmental Studies. Promptly conduct and complete, at Borrower's expense,
   all such investigations, studies, samplings and testings as may be requested
   by Lender or any governmental authority relative to any substance, or any
   waste or by-product of any substance defined as toxic or a hazardous
   substance under applicable federal, state, or local law, rule, regulation,
   order or directive, at or affecting any property or any facility owned,
   leased or used by Borrower.

   Compliance with Governmental Requirements. Comply with all laws, ordinances,
   and regulations, now or hereafter in effect, of all governmental authorities
   applicable to the conduct of Borrower's properties, businesses and
   operations, and to the use or occupancy of the Collateral, including without
   limitation, the Americans With Disabilities Act. Borrower may contest in good
   faith any such law, ordinance, or regulation and withhold compliance during
   any proceeding, including appropriate appeals, so long as Borrower has
   notified Lender in writing prior to doing so and so long as, in Lender's sole
   opinion, Lender's interests in the Collateral are not jeopardized. Lender may
   require Borrower to post adequate security or a surety bond, reasonably
   satisfactory to Lender, to protect Lender's interest.

   Inspection. Permit employees or agents of Lender at any reasonable time to
   inspect any and all Collateral for the Loan or Loans and Borrowers other
   properties and to examine or audit Borrower's books, accounts, and records
   and to make copies and memorandact Borrower's books, accounts, and records,
   If Borrower now or at any time hereafter maintains any records (including
   without limitation computer generated records and computer software programs
   for the generation of such records) in the possession of a third party,
   Borrower, upon request of Lender, shall notify such party to permit Lender
   free access to such records at all reasonable times and to provide Lender
   with copies of any records it may request, all at Borrower's expense.

   Compliance Certificates. Unless waived in writing by Lender, provide Lender
   at least annually and at the time of each disbursement of Loan proceeds, with
   a certificate executed by Borrower's chief financial officer, or other
   officer or person acceptable to Lender, certifying that the representations
   and warranties set forth in this Agreement are true and correct as of the
   date of the certificate and further certifying that, as of the date of the
   certificate, no Event of Default exists under this Agreement.

   Environmental Compliance and Reports. Borrower shall comply in all respects
   with any and all Environmental Laws; not cause or permit to exist, as a
   result of an intentional or unintentional action or omission on Borrower's
   part or on the part of any third party, on property owned and/or occupied by
   Borrower, any environmental activity where damage may result to the
   environment, unless such environmental activity is pursuant to and in
   compliance with the conditions of a permit issued by the appropriate federal,
   state or local governmental authorities; shall furnish to Lender promptly and
   in any event within thirty (30) days after receipt thereof a copy of any
   notice, summons, lien, citation, directive, letter or other communication
   from any governmental agency or instrumentality concerning any intentional or
   unintentional action or omission on Borrower's part in connection with any
   environmental activity whether or not there is damage to the environment
   and/or other natural resources.

   Additional Assurances. Make, execute and deliver to Lender such promissory
   notes, mortgages, deeds of trust, security agreements, assignments, financing
   statements, instruments, documents and other agreements as Lender or its
   attorneys may reasonably request to evidence and secure the Loans and to
   perfect all Security Interests.

LENDER'S EXPENDITURES. If any action or proceeding is commenced that would
materially affect Lender's interest in the Collateral or if Borrower fails to
comply with any provision of this Agreement or any Related Documents, including
but not limited to Borrower's failure to discharge or pay when due any amounts
Borrower is required to discharge or pay under this Agreement or any Related
Documents, Lender on Borrower's behalf may (but shall not be obligated to) take
any action that Lender deems appropriate, including but not limited to
discharging or paying all taxes, liens, security interests, encumbrances and
other claims, at any time levied or placed on any Collateral and paying all
costs for insuring, maintaining and preserving any Collateral. All such
expenditures incurred or paid by Lender for such purposes will then bear
interest at the rate charged under the Note from the date incurred or paid by
Lender to the date of repayment by Borrower. All such expenses will become a
part of the Indebtedness and, at Lenders option, will (A) be payable on demand;
(B) be added to the balance of the Note and be apportioned among and be payable
with any installment payments to become due during either (1) the term of any
applicable insurance policy; or (2) the remaining term of the Note; or (C) be
treated as a

<PAGE>

                             BUSINESS LOAN AGREEMENT
                               (Continued)                                Page 4
================================================================================

balloon payment which will be due and payable at the Note's maturity.

NEGATIVE COVENANTS. Borrower covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent of
Lender:

   Indebtedness and Liens. (1) Except for trade debt incurred in the normal
   course of business and indebtedness to Lender contemplated by this Agreement,
   create, incur or assume indebtedness for borrowed money, including capital
   leases, (2) sell, transfer, mortgage, assign, pledge, lease, grant a security
   interest in, or encumber any of Borrower's assets (except as allowed as
   Permitted Liens), or (3) sell with recourse any of Borrower's accounts,
   except to Lender.

   Continuity of Operations. (1) Engage in any business activities substantially
   different than those in which Borrower is presently engaged, (2) cease
   operations, liquidate, merge, transfer, acquire or consolidate with any other
   entity, change its name, dissolve or transfer or sell Collateral out of the
   ordinary course of business, or (3) pay any dividends on Borrower's stock
   (other than dividends payable in its stock), provided, however that
   notwithstanding the foregoing, but only so long as no Event of Default has
   occurred and is continuing or would result from the payment of dividends, if
   Borrower is a "Subchapter S Corporation" (as defined in the Internal Revenue
   Code of 1986, as amended), Borrower may pay cash dividends on its stock to
   its shareholders from time to time in amounts necessary to enable the
   shareholders to pay income taxes and make estimated income tax payments to
   satisfy their liabilities under federal and state law which arise solely from
   their status as Shareholders of a Subchapter S Corporation because of their
   ownership of shares of Borrower's stock, or purchase or retire any of
   Borrower's outstanding shares or alter or amend Borrower's capital structure.

   Loans, Acquisitions and Guaranties. (1) Loan, invest in or advance money or
   assets, (2) purchase, create or acquire any interest in any other enterprise
   or entity, or (3) incur any obligation as surety or guarantor other than in
   the ordinary course of business.

CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to
Borrower, whether under this Agreement or under any other agreement, Lender
shall have no obligation to make Loan Advances or to disburse Loan proceeds if:
(A) Borrower or any Guarantor is in default under the terms of this Agreement or
any of the Related Documents or any other agreement that Borrower or any
Guarantor has with Lender; (B) Borrower or any Guarantor dies, becomes
incompetent or becomes insolvent, files a petition in bankruptcy or similar
proceedings, or is adjudged a bankrupt; (C) there occurs a material adverse
change in Borrower's financial condition, in the financial condition of any
Guarantor, or in the value of any Collateral securing any Loan; or (D) any
Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such
Guarantor's guaranty of the Loan or any other loan with Lender; or (E) Lender in
good faith deems itself insecure, even though no Event of Default shall have
occurred.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Borrowers accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds
jointly with someone else and all accounts Borrower may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
Indebtedness against any and all such accounts.

DEFAULT. Each of the following shall constitute an Event of Default under this
Agreement:

   Payment Default. Borrower fails to make any payment when due under the Loan.

   Other Defaults. Borrower fails to comply with or to perform any other term,
   obligation, covenant or condition contained in this Agreement or in any of
   the Related Documents or to comply with or to perform any term, obligation,
   covenant or condition contained in any other agreement between Lender and
   Borrower.

   Default in Favor of Third Parties. Borrower or any Grantor defaults under any
   loan, extension of credit, security agreement, purchase or sales agreement,
   or any other agreement, in favor of any other creditor or person that may
   materially affect any of Borrower's or any Grantor's property or Borrower's
   or any Grantors ability to repay the Loans or perform their respective
   obligations under this Agreement or any of the Related Documents.

   False Statements. Any warranty, representation or statement made or furnished
   to Lender by Borrower or on Borrower's behalf under this Agreement, the Note,
   or the Related Documents is false or misleading in any material respect,
   either now or at the time made or furnished or becomes false or misleading at
   any time thereafter.

   Insolvency. The dissolution or termination of Borrower's existence as a going
   business, the insolvency of Borrower, the appointment of a receiver for any
   part of Borrowers property, any assignment for the benefit of creditors, any
   type of creditor workout, or the commencement of any proceeding under any
   bankruptcy or insolvency laws by or against Borrower.

   Defective Collateralization. This Agreement or any of the Related Documents
   ceases to be in full force and effect (including failure of any collateral
   document to create a valid and perfected security interest or lien) at any
   time and for any reason.

   Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture
   proceedings, whether by judicial proceeding, self-help, repossession or any
   other method, by any creditor of Borrower or by any governmental agency
   against any collateral securing the Loan. This includes a garnishment of any
   of Borrower's accounts, including deposit accounts, with Lender. However,
   this Event of Default shall not apply if there is a good faith dispute by
   Borrower as to the validity or reasonableness of the claim which is the basis
   of the creditor or forfeiture proceeding and if Borrower gives Lender written
   notice of the creditor or forfeiture proceeding and deposits with Lender
   monies or a surety bond for the creditor or forfeiture proceeding, in an
   amount determined by Lender, in its sole discretion, as being an adequate
   reserve or bond for the dispute.

   Events Affecting Guarantor. Any of the preceding events occurs with respect
   to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes
   incompetent, or revokes or disputes the validity of, or liability under, any
   Guaranty of the Indebtedness. In the event of a death, Lender, at its option,
   may, but shall not be required to, permit the Guarantors estate to assume
   unconditionally the obligations arising under the guaranty in a manner
   satisfactory to Lender, and, in doing so, cure any Event of Default.

   Change in Ownership. Any change in ownership of twenty-five percent (25%) or
   more of the common stock of Borrower.

   Adverse Change. A material adverse change occurs in Borrower's financial
   condition, or Lender believes the prospect of payment or performance
   of the Loan is impaired.

   Insecurity. Lender in good faith believes itself insecure.

   Right to Cure. If any default, other than a default on Indebtedness, is
   curable and if Borrower or Grantor, as the case may be, has not been given a
   notice of a similar default within the preceding twelve (12) months, it may
   be cured (and no Event of Default will have occurred) if Borrower or Grantor,
   as the case may be, after receiving written notice from Lender demanding cure
   of such default: (1) cure the default within ten (10) days; or (2) if the
   cure requires more than ten (10) days, immediately initiate steps which
   Lender deems in Lenders sole discretion to be sufficient to cure the default
   and thereafter continue and complete all reasonable and necessary steps
   sufficient to produce compliance as soon as reasonably practical.

EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where
otherwise provided in this Agreement or the Related Documents, all commitments
and obligations of Lender under this Agreement or the Related Documents or any
other agreement immediately will

<PAGE>

                             BUSINESS LOAN AGREEMENT
                                   (Continued)
================================================================================

terminate (including any obligation to make further Loan Advances or
disbursements), and, at Lenders option, all Indebtedness immediately will become
due and payable, all without notice of any kind to Borrower, except that in the
case of an Event of Default of the type described in the "Insolvency" subsection
above, such acceleration shall be automatic and not optional. In addition,
Lender shall have all the rights and remedies provided in the Related Documents
or available at law, in equity, or otherwise. Except as may be prohibited by
applicable law, all of Lenders rights and remedies shall be cumulative and may
be exercised singularly or concurrently. Election by Lender to pursue any remedy
shall not exclude pursuit of any other remedy, and an election to make
expenditures or to take action to perform an obligation of Borrower or of any
Grantor shall not affect Lender's right to declare a default and to exercise its
rights and remedies.

OTHER REQUIREMENTS:. 1. Capital (cash) injection: US $5 million by 12/31/00. 2.
Accounts receivable to be factored.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Agreement:

   Amendments. This Agreement, together with any Related Documents, constitutes
   the entire understanding and agreement of the parties as to the matters set
   forth in this Agreement. No alteration of or amendment to this Agreement
   shall be effective unless given in writing and signed by the party or parties
   sought to be charged or bound by the alteration or amendment.

   Attorneys' Fees; Expenses. Borrower agrees to pay upon demand all of Lenders
   costs and expenses, including Lender's attorneys' fees and Lenders legal
   expenses, incurred in connection with the enforcement of this Agreement.
   Lender may hire or pay someone else to help enforce this Agreement, and
   Borrower shall pay the costs and expenses of such enforcement. Costs and
   expenses include Lenders attorneys' fees and legal expenses whether or not
   there is a lawsuit, including attorneys' fees and legal expenses for
   bankruptcy proceedings (including efforts to modify or vacate any automatic
   stay or injunction), appeals, and any anticipated post-judgment collection
   services. Borrower also shall pay all court costs and such additional fees as
   may be directed by the court.

   Caption Headings. Caption headings in this Agreement are for convenience
   purposes only and are not to be used to interpret or define the provisions
   of this Agreement.

   Consent to Loan Participation. Borrower agrees and consents to Lenders sale
   or transfer, whether now or later, of one or more participation interests in
   the Loan to one or more purchasers, whether related or unrelated to Lender.
   Lender may provide, without any limitation whatsoever, to any one or more
   purchasers, or potential purchasers, any information or knowledge Lender may
   have about Borrower or about any other matter relating to the Loan, and
   Borrower hereby waives any rights to privacy Borrower may have with respect
   to such matters. Borrower additionally waives any and all notices of sale of
   participation interests, as well as all notices of any repurchase of such
   participation interests. Borrower also agrees that the purchasers of any such
   participation interests will be considered as the absolute owners of such
   interests in the Loan and will have all the rights granted under the
   participation agreement or agreements governing the sale of such
   participation interests. Borrower further waives all rights of offset or
   counterclaim that it may have now or later against Lender or against any
   purchaser of such a participation interest and unconditionally agrees that
   either Lender or such purchaser may enforce Borrower's obligation under the
   Loan irrespective of the failure or insolvency of any holder of any interest
   in the Loan. Borrower further agrees that the purchaser of any such
   participation interests may enforce its interests irrespective of any
   personal claims or defenses that Borrower may have against Lender.

   Governing Law. This Agreement will be governed by, construed and enforced in
   accordance with federal law and the laws of the State of California. This
   Agreement has been accepted by Lender in the State of California.

   Choice of Venue. If there is a lawsuit, Borrower agrees upon Lender's request
   to submit to the jurisdiction of the courts of Los Angeles County, State of
   California.

   Joint and Several Liability. All obligations of Borrower under this Agreement
   shall be joint and several, and all references to Borrower shall mean each
   and every Borrower. This means that each Borrower signing below is
   responsible for all obligations in this Agreement. Where any one or more of
   the parties is a corporation, partnership, limited liability company or
   similar entity, it is not necessary for Lender to inquire into the powers of
   any of the officers, directors, partners, members, or other agents acting or
   purporting to act on the entity's behalf, and any obligations made or created
   in reliance upon the professed exercise of such powers shall be guaranteed
   under this Agreement.

   No Waiver by Lender. Lender shall not be deemed to have waived any rights
   under this Agreement unless such waiver is given in writing and signed by
   Lender. No delay or omission on the part of Lender in exercising any right
   shall operate as a waiver of such right or any other right. A waiver by
   Lender of a provision of this Agreement shall not prejudice or constitute a
   waiver of Lenders right otherwise to demand strict compliance with that
   provision or any other provision of this Agreement. No prior waiver by
   Lender, nor any course of dealing between Lender and Borrower, or between
   Lender and any Grantor, shall constitute a waiver of any of Lenders rights or
   of any of Borrower's or any Grantors obligations as to any future
   transactions. Whenever the consent of Lender is required under this
   Agreement, the granting of such consent by Lender in any instance shall not
   constitute continuing consent to subsequent instances where such consent is
   required and in all cases such consent may be granted or withheld in the sole
   discretion of Lender.

   Notices. Any notice required to be given under this Agreement shall be given
   in writing, and shall be effective when actually delivered, when actually
   received by telefacsimile (unless otherwise required by law), when deposited
   with a nationally recognized overnight courier, or, if mailed, when deposited
   in the United States mail, as first class, certified or registered mail
   postage prepaid, directed to the addresses shown near the beginning of this
   Agreement. Any party may change its address for notices under this Agreement
   by giving formal written notice to the other parties, specifying that the
   purpose of the notice is to change the party's address. For notice purposes,
   Borrower agrees to keep Lender informed at all times of Borrower's current
   address. Unless otherwise provided or required by law, if there is more than
   one Borrower, any notice given by Lender to any Borrower is deemed to be
   notice given to all Borrowers.

   Severability. If a court of competent jurisdiction finds any provision of
   this Agreement to be illegal, invalid, or unenforceable as to any person or
   circumstance, that finding shall not make the offending provision illegal,
   invalid, or unenforceable as to any other person or circumstance. If
   feasible, the offending provision shall be considered modified so that it
   becomes legal, valid and enforceable. If the offending provision cannot be so
   modified, it shall be considered deleted from this Agreement. Unless
   otherwise required by law, the illegality, invalidity, or unenforceability of
   any provision of this Agreement shall not affect the legality, validity or
   enforceability of any other provision of this Agreement.

   Subsidiaries and Affiliates of Borrower. To the extent the context of any
   provisions of this Agreement makes it appropriate, including without
   limitation any representation, warranty or covenant, the word "Borrower" as
   used in this Agreement shall include all of Borrower's subsidiaries and
   affiliates. Notwithstanding the foregoing however, under no circumstances
   shall this Agreement be construed to require Lender to make any Loan or other
   financial accommodation to any of Borrower's subsidiaries or affiliates.

   Successors and Assigns. All covenants and agreements contained by or on
   behalf of Borrower shall bind Borrower's successors and assigns and shall
   inure to the benefit of Lender and its successors and assigns. Borrower shall
   not, however, have the right to assign Borrower's rights under this Agreement
   or any interest therein, without the prior written consent of Lender.

   Survival of Representations and Warranties. Borrower understands and agrees
   that in extending Loan Advances, Lender is relying on all representations,
   warranties, and covenants made by Borrower in this Agreement or in any
   certificate or other instrument delivered by Borrower to Lender under this
   Agreement or the Related Documents. Borrower further agrees that regardless
   of any investigation made by Lender, all such representations, warranties and
   covenants will survive the extension of Loan Advances and delivery to Lender
   of the Related Documents, shall be

<PAGE>

                             BUSINESS LOAN AGREEMENT
                                   (Continued)                            Page 6
================================================================================

   continuing in nature, shall be deemed made and redated by Borrower at the
   time each Loan Advance is made, and shall remain in full force and effect
   until such time as Borrowers Indebtedness shall be paid in full, or until
   this Agreement shall be terminated in the manner provided above, whichever is
   the last to occur.

   Time is of the Essence. Time is of the essence in the performance of this
   Agreement.

   Waive Jury. All parties to this Agreement hereby waive the right to any jury
   trial in any action, proceeding, or counterclaim brought by any party against
   any other party.

DEFINITIONS. The following capitalized words and terms shall have the following
meanings when used in this Agreement. Unless specifically stated to the
contrary, all references to dollar amounts shall mean amounts in lawful money of
the United States of America. Words and terms used in the singular shall include
tne plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code. Accounting
words and terms not otherwise defined in this Agreement shall have the meanings
assigned to them in accordance with generally accepted accounting principles as
in effect on the date of this Agreement:

   Advance. The word "Advance" means a disbursement of Loan funds made, or to be
   made, to Borrower or on Borrower's behalf on a line of credit or multiple
   advance basis under the terms and conditions of this Agreement.

   Agreement. The word "Agreement" means this Business Loan Agreement, as this
   Business Loan Agreement may be amended or modified from time to time,
   together with all exhibits and schedules attached to this Business Loan
   Agreement from time to time.

   Borrower. The word "Borrower' means integrated Packaging Assembly
   Corporation; and OSE, Inc., and all other persons and entities signing the
   Note in whatever capacity.

   Collateral. The word "Collateral" means all property and assets granted as
   collateral security for a Loan, whether real or personal property, whether
   granted directly or indirectly, whether granted now or in the future, and
   whether granted in the form of a security interest, mortgage, collateral
   mortgage, deed of trust, assignment, pledge, chattel mortgage, crop pledge,
   chattel mortgage, collateral chattel mortgage, chattel trust, factor's lien,
   equipment trust, conditional sale, trust receipt, lien, charge, lien or title
   retention contract, lease or consignment intended as a security device, or
   any other security or lien interest whatsoever, whether created by law,
   contract, or otherwise.

   Environmental Laws. The words "Environmental Laws" mean any and all state,
   federal and local statutes, regulations and ordinances relating to the
   protection of human health or the environment, including without limitation
   the Comprehensive Environmental Response, Compensation, and Liability Act of
   1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund
   Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the
   Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the
   Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq.,
   Chapters 6.5 through 7.7 of Division 20 of the California Health and Safety
   Code, Section 25100, et seq., or other applicable state or federal laws,
   rules, or regulations adopted pursuant thereto.

   Event of Default. The words "Event of Default" mean any of the Events of
   Default set forth in this Agreement in the Default section of this Agreement.

   GAAP. The word "GAAP" means generally accepted accounting principles.

   Grantor. The word "Grantor" means each and all of the persons or entities
   granting a Security Interest in any Collateral for the Loan, including
   without limitation all Borrowers granting such a Security Interest.

   Guarantor. The word "Guarantor" means any guarantor, surety, or accommodation
   party of any or all of the Loan.

   Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender,
   including without limitation a guaranty of all or part of the Note.

   Hazardous Substances. The words "Hazardous Substances" mean materials that,
   because of their quantity, concentration or physical, chemical or infectious
   characteristics, may cause or pose a present or potential hazard to human
   health or the environment when improperly used, treated, stored, disposed of,
   generated, manufactured, transported or otherwise handled. The words
   "Hazardous Substances" are used in their very broadest sense and include
   without limitation any and all hazardous or toxic substances, materials or
   waste as defined by or listed under the Environmental Laws. The term
   "Hazardous Substances" also includes, without limitation, petroleum and
   petroleum by-products or any fraction thereof and asbestos.

   Indebtedness. The word "Indebtedness" means the indebtedness evidenced by the
   Note or Related Documents, including all principal and interest together with
   all other indebtedness and costs and expenses for which Borrower is
   responsible under this Agreement or under any of the Related Documents.

   Lender. The word "Lender" means Bank SinoPac, Los Angeles Branch, its
   successors and assigns.

   Loan. The word "Loan" means any and all loans and financial accommodations
   from Lender to Borrower whether now or hereafter existing, and however
   evidenced, including without limitation those loans and financial
   accommodations described herein or described on any exhibit or schedule
   attached to this Agreement from time to time.

   Note. The word "Note" means the Note executed by Borrower in the principal
   amount of $7,000,000.00 dated November 29, 2000, together with all renewals
   of, extensions of, modifications of, refinancings of, consolidations of, and
   substitutions for the note or credit agreement.

   Permitted Liens. The words "Permitted Liens" mean (1) liens and security
   interests securing Indebtedness owed by Borrower to Lender; (2) liens for
   taxes, assessments, or similar charges either not yet due or being contested
   in good faith; (3) liens of materialmen, mechanics, warehousemen, or
   carriers, or other like liens arising in the ordinary course of business and
   securing obligations which are not yet delinquent; (4) purchase money liens
   or purchase money security interests upon or in any property acquired or held
   by Borrower in the ordinary course of business to secure indebtedness
   outstanding on the date of this Agreement or permitted to be incurred under
   the paragraph of this Agreement titled "Indebtedness and Liens"; (5) liens
   and security interests which, as of the date of this Agreement, have been
   disclosed to and approved by the Lender in writing; and (6) those liens and
   security interests which in the aggregate constitute an immaterial and
   insignificant monetary amount with respect to the net value of Borrower's
   assets.

   Related Documents. The words "Related Documents" mean all promissory notes,
   credit agreements, loan agreements, environmental agreements, guaranties,
   security agreements, mortgages, deeds of trust, security deeds, collateral
   mortgages, and all other instruments, agreements and documents, whether now
   or hereafter existing, executed in connection with the Loan.

   Security Agreement. The words "Security Agreement" mean and include without
   limitation any agreements, promises, covenants, arrangements, understandings
   or other agreements, whether created by law, contract, or otherwise,
   evidencing, governing, representing, or creating a Security interest.

   Security Interest. The words "Security Interest" mean, without limitation,
   any and all types of collateral security, present and future, whether in
   the form of a lien, charge, encumbrance, mortgage, deed of trust, security
   deed, assignment, pledge, crop pledge, chattel mortgage, collateral chattel

<PAGE>

                             BUSINESS LOAN AGREEMENT
                               (Continued)                                Page 7

   mortgage, chattel trust, factors lien, equipment trust, conditional sale,
   trust receipt, lien or title retention contract, lease or consignment
   intended as a security device, or any other security or lien interest
   whatsoever whether created by law, contract, or otherwise.

BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN
AGREEMENT AND BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS
DATED NOVEMBER 29, 2000.

BORROWER:


INTEGRATED,PACKAGING ASSEMBLY CORPORATION


By: /s/ Vincent Lepore
    ----------------------------------------
    Vincent Lepore, Controller of Integrated Packaging
    Assembly Corporation


By: /s/ Edmond Tseng
    ----------------------------------------
    Edmond Tseng, President of Integrated Packaging
    Assembly Corporation




OSE, INC.


By: /s/ Edmond Tseng
    ----------------------------------------
    Edmond Tseng, President of OSE, Inc.


By: /s/ Vincent Lepore
    ----------------------------------------
    Vincent Lepore, Controller of OSE, Inc.

LENDER:

BANK SINOPAC, LOS ANGELES BRANCH


   /s/
x-------------------------------------------
 Authorized Signer