INTELLECTUAL PROPERTY SECURITY AGREEMENT

         This Intellectual Property Security Agreement (this "lP Agreement") is
made as of November 10, 2000 by and between AML Communications. Inc.
("Grantor"), and Silicon Valley Bank, a California banking corporation ("Bank").

                                    RECITALS

         A. Bank will make advances to Grantor ("Advances") as described in the
Accounts Receivable Financing Agreement (the "Financing Agreement"), but only if
Grantor grants Bank a security interest in its Copyrights, Trademarks, Patents,
and Mask Works. Defined terms used but not defined herein shall have the same
meanings as in the Financing Agreement,

         B. Pursuant to the terms of the Financing Agreement, Grantor has
granted to Bank a security interest in all of Grantor's right title and
interest, whether presently existing or hereafter acquired in, to and under all
of the Collateral.

         NOW, THEREFORE, for good and valuable consideration, receipt of which
is hereby acknowledged and intending to be legally bound, as collateral security
for the prompt and complete payment when due of Grantor's Indebtedness under the
Financing Agreement, Grantor hereby represents, warrants, covenants and agrees
as follows:

         1. GRANT OF SECURITY INTEREST. As collateral security for the prompt
and complete payment and performance of all of Grantor's present or future
Indebtedness, obligations and liabilities to Bank, Grantor hereby grants a
security interest in all of Grantor's right, title and interest in, to and under
its Intellectual Property Collateral (all of which shall collectively be called
the "Intellectual Property Collateral"), including, without limitation, the
following:

         (a) Any and all copyright rights, copyright applications, copyright
registrations and like protections in each work or authorship and derivative
work thereof, whether published or unpublished and whether or not the same also
constitutes a trade secret, now or hereafter existing, created, acquired or
held, including without limitation those set forth on Exhibit A attached hereto
(collectively, the "Copyrights");

         (b) Any and all trade secrets, and any and all intellectual property
rights in computer software anti computer software products now or hereafter
existing, created, acquired or held;

         (c) Any and all design rights which may be available to Grantor now or
hereafter existing, created, acquired or held;

         (d) All patents, patent applications and like protections including,
without limitation, improvements, divisions, continuations, renewals, reissues,
extensions and continuations-in-part of the same, including without limitation
the patents and patent applications set forth on Exhibit B attached hereto
(collectively, the "Patents");

         (e) Any trademark and servicemark rights, whether registered or not,
applications to register and registrations of the same and like protections, and
the entire goodwill of the business of Grantor connected with arid symbolized by
such trademarks, including without limitation those set forth on Exhibit C
attached hereto (collectively, the "Trademarks")

         (f) All mask works or similar rights available for the protection of
semiconductor chips, now owned or hereafter acquired, including, without
limitation those set forth on Exhibit D attached hereto (collectively, the "Mask
Works");

         (g) Any and all claims for damages by way of past, present and future
infringements of any of the rights included above, with the right, but not the
obligation, to sue far and collect such damages far said use or infringement of
the intellectual property rights identified above:

         (h) All licenses or other rights to use any of the Copyrights, Patents,
Trademarks, or Mask Works and all license fees and royalties arising from such
use to the extent permitted by such license or rights; and

         (i) All amendments, extensions, renewals and extensions of any of the
Copyrights, Trademarks, Patents, or Mask Works; and


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<PAGE>

         (j) All proceeds and products of the foregoing, including without
limitation all payments under insurance or any indemnity or warranty payable in
respect of any of the foregoing.

       2. AUTHORIZATION AND REQUEST. Grantor authorizes and requests that the
Register of Copyrights and the Commissioner of Patents and Trademarks record
this IP Agreement.

       3. COVENANTS AND WARRANTIES. Grantor represents, warrants, covenants and
agrees as follows:

         (a) Grantor is now the sole owner of the Intellectual Property
Collateral, except for port-exclusive licenses granted by Grantor to its
customers in the ordinary course of business,

         (b) Performance of this IP Agreement does not conflict with or result
in a breach of any IP Agreement to which Grantor is bound, except to the extent
that certain intellectual property agreements prohibit the assignment of the
rights thereunder to a third party without the licenser's or other party's
consent and this IP Agreement constitutes a security interest.

         (c) During the term of this IP Agreement, Grantor will not transfer or
otherwise encumber any interest in the intellectual Properly Collateral, except
for non-exclusive licenses granted by Grantor in the ordinary course of business
or as set forth in this IP Agreement;

         (d) To its knowledge, each of the Patents is valid and enforceable, and
no part of the intellectual Property Collateral has been judged invalid or
unenforceable, in whole or in part, and no claim has been made that any part of
the intellectual Property Collateral violates the rights of any third party;

         (e) Grantor shall promptly advise Bank of any material adverse change
in the composition of the Collateral, including but not limited to any
subsequent ownership right of the Grantor in or to any Trademark, Patent,
Copyright, or Mask Work specified in this IP Agreement;

         (f) Grantor shall (i) protect, defend and maintain the validity and
enforceability of the Trademarks, Patents, Copyrights, and Mask Works, (ii) use
its best efforts to detect infringements of the Trademarks, Patents, Copyrights,
and Mask Works and promptly advise Bank in writing of material infringements
detected and (iii) not allow any Trademarks, Patents, Copyrights, or Mask Works
to be abandoned, forfeited or dedicated to the public without the written
consent of Bank, which shall not be unreasonably withheld, unless Grantor
determines that reasonable business practices suggest that abandonment is
appropriate.

         (g) Grantor shall promptly register the most recent version of any of
Grantor's Copyrights, if not so already registered, and shall, from time to
time, execute and file such other instruments, and take such further actions as
Bank may reasonably request from time to time to perfect or continue the
perfection of Bank's interest in the intellectual Property Collateral;

         (h) This IP Agreement creates, and in the case of after acquired
Intellectual Property Collateral, this IP Agreement will create at the time
Grantor first has rights in such after acquired intellectual Property
Collateral, in favor of Bank a valid and perfected first priority security
interest in the intellectual Property Collateral in the United States securing
the payment and performance of the obligations evidenced by the Financing
Agreement upon making the filings referred to in clause (i) below;

         (i) To its knowledge, except for, and upon, the filing with the United
Skates Patent and Trademark office With respect to the patents and Trademarks
and the Register of Copyrights with respect to the Copyrights and Mask Works
necessary to perfect the security interests created hereunder and except as has
been already made or obtained, no authorization, approval or other action by,
and no notice to or filing with, any U.S. governmental authority of U_S.
regulatory body is required either (i) for the grant by Grantor of the security
interest granted hereby or for the execution, delivery or performance of this 1P
Agreement by Grantor in the U.S. or (ii) for the perfection in the United States
or the exercise by Bank of its rights and remedies thereunder;

         (j) All information heretofore, herein or hereafter supplied to Bank by
or on behalf of Granter with respect to the Intellectual Property Collateral is
accurate end complete in all material respects.

         (k) Grantor shall not enter into any agreement that would materially
impair or conflict with Grantor's obligations hereunder without Bank's prior
written consent, which consent shall not be unreasonably withheld.


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<PAGE>

         Grantor shall not permit the inclusion in any material contract to
which it becomes a party of any provisions that could or might in any way
prevent the creation of a security interest in Grantor's rights and interest in
any property included within the definition of the Intellectual property
Collateral acquired under such contracts, except that certain contracts may
contain anti-assignment provisions that could in effect prohibit the creation of
a security interest in such contracts.

         (l) Upon any executive officer of Grantor obtaining actual knowledge
thereof, Grantor will promptly notify Sank in writing of any event that
materially adversely affects the value of any material intellectual Property
Collateral, the ability of Grantor to dispose of any material Intellectual
Property Collateral of the tights and remedies of Bank in relation thereto,
including the levy of any legal process against any of the Intellectual Property
Collateral-

         4. BANK'S RIGHTS. Bank shall have the right, but net the obligation, to
take, at Grantor's sole expense, any actions that Grantor is required under this
IP Agreement to take but which Grantor fails to take, after fifteen (15) days
notice to Grantor. Grantor shall reimburse and indemnify Bank for all reasonable
costs and reasonable expenses incurred in the reasonable exercise of its rights
under this section 4.

         5. INSPECTION RIGHTS. Grantor hereby grants to Bank and its employees,
representatives and agents the right to visit, during reasonable hours upon
prior reasonable written notice to Grantor, and any of Grantor's plants and
facilities that manufacture, install or store products (or that have done so
during the prior six-month period) that are sold utilizing any of the
Intellectual Property Collateral, and to inspect the products and quality
control records relating thereto upon reasonable written notice to Grantor and
as often as may be reasonably requested, but not more than one (1) in every six
(6) months; provided, however, nothing herein shall entitle Bank access to
Grantor's trade secrets and other proprietary information.


                                       3
<PAGE>

         6. FURTHER ASSURANCES; ATTORNEY IN FACT.

         (a) On a continuing basis, Grantor will, subject to any prior licenses,
encumbrances and restrictions and prospective licenses, make, execute,
acknowledge and deliver, and file and record in the proper filing and recording
places in the United States, all such instruments, including appropriate
financing and continuation statements and collateral agreements and filings with
the United States Patent and Trademarks Office and the Register of Copyrights,
and take all such action as may reasonably be deemed necessary or advisable, or
as requested by Bank, to perfect Bank's security interest in all Copyrights,
Patents, Trademarks, and Mask Works and otherwise to carry out the intent and
purposes of this IP Agreement, or for assuring and confirming to Bank the grant
or perfection of a security interest in all Intellectual Property Collateral.

         (b) Grantor hereby irrevocably appoints Bank as Grantor's
attorney-in-fact, with full authority in the place and stead of Grantor and in
the name of Grantor, Bank or otherwise, from time to time in Bank's discretion,
upon Grantor's failure or inability to do so, to take any action and to execute
any instrument which Bank may deem necessary or advisable to accomplish the
purposes of this IP Agreement, including:

         (i) To modify, in its sole discretion, this IP Agreement without first
obtaining Grantor's approval of or signature to such modification by amending
Exhibit A, Exhibit B, Exhibit C, and Exhibit D hereof, as appropriate, to
include reference to any right, title or Interest in any Copyrights, Patients,
Trademarks or Mask Works acquired by Grantor after the execution hereof or to
delete any reference to any right, title or interest in any Copyrights, Patents,
Trademarks, or Mask Works to which Grantor no longer has or claims any right,
title or interest; and

         (ii) To file, in its sole discretion, one or more financing or
continuation statements and amendments thereto, relative to any of the
Intellectual Property Collateral without the signature of Grantor where
permitted by Law.

         7. EVENTS OF DEFAULT. The occurrence of any of the following shall
constitute an Event of Default under this IP Agreement:

         (a) An Event of Default occurs under the Financing Agreement; or

         (b) Grantor breaches any warranty or agreement made by Grantor in this
IP Agreement.

         8. REMEDIES. Upon the occurrence and continuance of an Event of
Default, Bank shall have the right to exercise all the remedies of a secured
party under the California Uniform Commercial Code, including without limitation
the right to require Grantor to assemble the Intellectual Properly Collateral
and any tangible property in which Bank has a security interest and to make it
available to Bank at a place designated by Bank. Bank shall have a nonexclusive,
royalty free license to use the Copyrights, Patents, Trademarks, and Mask Works
to the extent reasonably necessary to permit Bank to exercise its rights and
remedies upon the occurrence of an Event of Default. Grantor will pay any
expenses (including reasonable attorney's fees) incurred by Bank in connection
with the exercise of any of Bank's rights hereunder, including without
limitation any expense incurred in disposing of the Intellectual Property
Collateral. All of Bank's rights and remedies with respect to the Intellectual
Property Collateral shall be cumulative.

         9. INDEMNITY. Grantor agrees to defend, indemnify and hold harmless
Bank and its officers, employees, and agents against: (a) all obligations,
demands, claims, and liabilities claimed or asserted by any other party in
connection with the transactions contemplated by this IP Agreement, and (b) all
losses or expenses in any way suffered, incurred, or paid by Bank as a result of
or in any way arising out of, following or consequential to transactions between
Bank and Grantor, whether under this IP Agreement or otherwise (Including
without limitation, reasonable attorneys fees and reasonable expenses), except
for losses arising from or out of Bank's gross negligence or willful misconduct.

         10. REASSIGNMENT. At such time as Grantor shall completely satisfy all
of the obligations secured hereunder, Bank shall execute and deliver to Grantor
all deed, assignments, and other instruments as may be necessary or proper to
reinvest in Grantor full title to the property assigned hereunder, subject to
any disposition thereof which may have been roads by Bank pursuant hereto.

         11. COURSE OF DEALING.No course of dealing, nor any failure to
exercise, nor any delay in exercising any right, power or privilege hereunder
shaft operate as a waiver thereof.


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<PAGE>

         12. ATTORNEYS FEES. If any action relating to this IP Agreement is
brought by either party hereto against the other party, the prevailing party
shall be entitled to recover reasonable attorneys' fees, costs and
disbursements.

         13. AMENDMENTS. This 1P Agreement may be amended only by a written
instrument signed by both parties hereto.

         14. COUNTERPARTS. This IP Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute the same instrument.

         15. LAW AND JURISDICTION. This IP Agreement shall be governed by and
construed in accordance with the laws of the State of California, without regard
for choice of law provisions. Grantor and Bank consent to the nonexclusive
jurisdiction of any state or federal court located in Santa Clara County,
California.

         16. CONFIDENTIALITY. In handling any confidential information, Bank
shall exercise the same degree of care that it exercises with respect to its own
proprietary information of the same types to maintain the confidentiality of any
nonpublic information thereby received or received pursuant to this IP Agreement
except that the disclosure of this information may be made (i) to the affiliates
of the Bank, (ii) to prospective transferee or purchasers of an interest in the
obligations secured hereby, provided that they have entered into comparable
confidentiality agreement in favor of grantor and have deliver a copy to
Grantor, (iii) as required by law, regulation, rule or order, subpoena judicial
order or similar order and (iv) as may be required in connection with the
examination, audit or similar investigation of Bank.

         IN WITNESS WHEREOF, the parties hereto have executed this IP Agreement
on the day and year first above written.

ADDRESS OF GRANTOR:                     GRANTOR:

1000 Avenida Acaso                      AML Communications, Inc
Camarillo, California 93412
                                        By:    /s/ Karl R. Brier
                                               --------------------

                                        Name:  Karl R. Brier
                                               --------------------

                                        Title: Chief Financial Officer
                                               and Treasurer
                                               -----------------------


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<PAGE>

Exhibit "A" attached to that certain Intellectual Property Security Agreement
dated November 10, 2000

                                   EXHIBIT "A"

                                   COPYRIGHTS

SCHEDULE A - ISSUED COPYRIGHTS
------------------------------

<TABLE>
<CAPTION>
COPYRIGHT                       REGISTRATION                 DATE OF
DESCRIPTION                     NUMBER                       ISSUANCE
-----------                     ------------                 --------
<S>                             <C>                          <C>

</TABLE>

SCHEDULE B - PENDING COPYRIGHT APPLICATIONS
-------------------------------------------

<TABLE>
<CAPTION>
                                                                FIRST DATE
COPYRIGHT       APPLICATION                                     OF PUBLIC
DESCRIPTION     NUMBER         DATE OF FILING     CREATION      DISCTRIBUTION
-----------     ------         --------------     --------      -------------
<S>             <C>            <C>                <C>           <C>

</TABLE>

SCHEDULE C - UNREGISTERED COPYRIGHTS (Where No Copyright Application is Pending)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                DATE AND
                                                                RECORDATION
                                                                NUMBER OF
                                                                IP AGREEMENT TO
                                                                OWNER OF
                                             ORIGINAL           GRANTOR (IF
                                             AUTHOR OR          ORIGINAL AUTHOR
                                             OWNER OF           OR OWNER OF
                            FIRST DATE       COPYRIGHT          COPYRIGHT IS
COPYRIGHT       DATE OF     OF               (IF DIFFERENT      DIFFERENT FROM
DESCRIPTION     CREATION    DISTRIBUTION     FROM GRANTOR)      GRANTOR)
-----------     --------    ------------     -------------      ---------------
<S>             <C>         <C>              <C>                <C>

</TABLE>


                                       6
<PAGE>

Exhibit "B" attached to that certain Intellectual Property Security Agreement
dated November 10, 2000

                                   EXHIBIT "B"

                                     PATENTS


<TABLE>
<CAPTION>
PATENT
DESCRIPTION   DOCKET NO.  COUNTRY    SERIAL NO.    FILING DATE      STATUS
-----------   ----------  --------   -----------   ------------     ------
<S>           <C>         <C>        <C>           <C>              <C>

</TABLE>


                                       7
<PAGE>

Exhibit "C" attached to that certain Intellectual Property Security Agreement
dated November 10, 2000

                                   EXHIBIT "C"

                                   TRADEMARKS

<TABLE>
<CAPTION>
TRADEMARK
DESCRIPTION     COUNTRY     SERIAL NO.   REG. NO    STATUS
-----------     -------     ----------   -------    ------
<S>             <C>         <C>           <C>        <C>

</TABLE>


                                       8
<PAGE>

Exhibit "D" attached to that certain intellectual Property Security Agreement
dated November 10, 2000

                                   EXHIBIT"D"

                                   MASK WORKS

<TABLE>
<CAPTION>
MASK WORK
DESCRIPTION             COUNTRY       SERIAL NO.        RED. NO.          STATUS
-----------             -------       ----------        --------          ------
<S>                     <C>           <C>               <C>               <C>

</TABLE>


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