EXHIBIT 10.6

                               AMENDMENT NO. 6 TO
                           LOAN AND SECURITY AGREEMENT


         THIS AMENDMENT NO. 6 TO LOAN AND SECURITY  AGREEMENT  ("Amendment")  is
made and entered into as of March 26, 2007 by and between  ELECTROGLAS,  INC., a
Delaware corporation ("Borrower"), and COMERICA BANK ("Bank").

                                    RECITALS

         A.  Borrower  and Bank have entered into that certain Loan and Security
Agreement  dated as of July 16, 2004,  as amended by Amendment No. 1 to Loan and
Security  Agreement  dated as of January 24, 2005,  Amendment  No. 2 to Loan and
Security  Agreement  dated  as of July  13,  2005,  Amendment  No. 3 to Loan and
Security  Agreement  dated as of April  25,  2006,  Amendment  No. 4 to Loan and
Security  Agreement  dated as of September 6, 2006,  and Amendment No. 5 to Loan
and Security  Agreement  dated as of January 22, 2007  (collectively,  the "Loan
Agreement")  pursuant to which Bank has agreed to extend and make  available  to
Borrower certain credit facilities.

         B. Borrower  desires that Bank amend the Loan  Agreement upon the terms
and conditions more fully set forth herein.

         C. Subject to the representations and warranties of Borrower herein and
upon the terms and conditions set forth in this Amendment, Bank is willing to so
amend the Loan Agreement.

         D. This Amendment,  the Loan Agreement and the other Loan Documents (as
defined in the Loan Agreement),  together with all other documents  entered into
or  delivered  pursuant  to any of the  foregoing,  in each  case as  originally
executed  or  as  the  same  may  from  time  to  time  be  modified,   amended,
supplemented,  restated or superseded,  are hereinafter collectively referred to
as the "Loan Documents."

                                    AGREEMENT

         NOW,  THEREFORE,  in  consideration  of the foregoing  recitals and the
mutual covenants herein set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby  acknowledged,  and intending to
be legally bound,  Borrower and Bank hereby agree to amend the Loan Agreement as
follows:

                  1.  Definitions.  Unless otherwise  defined herein,  all terms
defined in the Loan Agreement have the same meaning when used herein.

                  2.  Amendments to Loan Agreement.

                      a.  Section 5 of the Loan Agreement is hereby  amended  by
adding the following new Sections 5.13 and 5.14 to the end thereof:

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                  "5.13  Equipment.

                  (a) Borrower  represents  and warrants to Bank and agrees that
all of the  Equipment  owned by  Borrower is and will be used or held for use in
Borrower's business (other than obsolete Equipment),  and is and will be fit for
such purposes.  Borrower shall keep and maintain its Equipment in good operating
condition  and  repair  (ordinary  wear and tear  excepted)  and shall  make all
necessary replacements thereof.

                  (b)  Borrower  will not,  without  the  Bank's  prior  written
consent,  alter or remove any identifying  symbol or number on any of Borrower's
Equipment constituting Collateral.

                  5.14   Documents,  Instruments,  and  Chattel  Paper. Borrower
represents  and warrants to Bank that all  documents,  instruments,  and chattel
paper describing, evidencing, or constituting Collateral, and all signatures and
endorsements  thereon,  are and  will  be  valid  and  genuine  in all  material
respects."

                         b.  Section 6.6 of the Loan Agreement is hereby amended
and restated in its entirety to read as follows:

                  "6.6   Operating and  Money  Market  Account.  Borrower  shall
maintain an operating  account and a money market account with Bank. In addition
to all other accounts  required to be kept with Bank,  Borrower shall maintain a
blocked money market account with Bank in the amount of not less than $8,750,000
which shall be funded from the proceeds of the  Subordinated  Debt  described in
clause (ii) of the  definition  thereof and held by Bank pursuant to irrevocable
instructions  that such funds may be disbursed only for the purpose of paying in
full the  Subordinated  Debt  referred  to in clause  (i) of the  definition  of
Subordinated Debt."

                         c.  Section 6 is hereby amended by adding the following
new Section 6.10 and 6.11 to the end thereof:

                  "6.10  Collateral  Reporting.  After the occurrence and during
the  continuance  of an Event of Default,  Borrower shall provide Bank with such
reports as to the Collateral as the Bank shall  reasonably  request from time to
time;  together,  in each case,  with a  certificate  executed  by an officer of
Borrower  thereof  certifying  as  to  the  accuracy  and  completeness  of  the
foregoing.

                  6.11   Additional  Security  Documents. If any  Subsidiary  of
Borrower  is  formed  under  the laws of the  United  States or any state of the
United States and becomes a Significant  Subsidiary,  then such Subsidiary shall
(a)  execute a Guaranty  in similar  form to the  Guaranty  dated as of the date
hereof between  Electroglas  International,  Inc., a Delaware  corporation,  and
Bank,  and (b) execute a Third Party  Security  Agreement in similar form to the
Third Party Security  Agreement dated as of the date hereof between  Electroglas
International, Inc., a Delaware corporation, and Bank, all in form and substance
satisfactory to Bank."

                         d.  Section 7.3 of the Loan Agreement is hereby amended
and restated in its entirety to read as follows:

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                  "7.3   Mergers  or  Acquisitions.  Merge  or  consolidate,  or
permit any of its  Subsidiaries to merge or consolidate,  with or into any other
business organization (other than mergers or consolidations of a Subsidiary into
another  Subsidiary  or  into  Borrower),  or  acquire,  or  permit  any  of its
Subsidiaries  to  acquire,  all or  substantially  all of the  capital  stock or
property of another  Person  except where (i) any such  acquisition  is (A) of a
foreign  Subsidiary  and the  aggregate  amount  expended  by  Borrower  and its
Subsidiaries to acquire foreign  Subsidiaries from and after March 26, 2007 does
not exceed  $5,000,000  outstanding  at any time,  (B) of a domestic  Subsidiary
which  becomes a guarantor  and  executes  security  documentation  in the forms
referenced  in Section  6.11,  or (C) is less than  $1,000,000  in the aggregate
outstanding  at any  time,  provided,  however,  that  the  total  of  all  such
acquisitions  described  in clauses (A), (B) and (C) in any fiscal year does not
exceed $5,000,000 during any fiscal year, (ii) no Event of Default has occurred,
is  continuing or would exist after giving  effect to such  transactions,  (iii)
such transactions do not result in a Change in Control,  and (iv) in the case of
a merger, Borrower is the surviving entity."

                         e.  Section 7.6 of the Loan Agreement is hereby amended
and restated in its entirety to read as follows:

                  "7.6   Distributions.

                  (a)   Declare,   set  aside  or  pay  a  dividend  or  make  a
distribution  in respect of any  capital  stock,  shares of any class of capital
stock of Borrower, any evidences of Borrower's  indebtedness or any other assets
of Borrower or any of its Subsidiaries (including securities); or

                  (b) Make a tender offer for, or repurchase,  redeem or acquire
all or any portion of the  outstanding  capital  stock of Borrower or any of its
Subsidiaries,  excluding  repurchases  of capital stock from employees or former
employees  of Borrower  not in excess of an  aggregate  amount of $50,000 in any
fiscal year.

Notwithstanding the foregoing,  any Subsidiary may declare, set aside or pay any
dividends or make any other distributions in respect of any of its capital stock
that is held by Borrower or any Subsidiary."

                         f.  Section 7.9 of the Loan Agreement is hereby amended
and restated in its entirety to read as follows:

                  "7.9   Subordinated Debt.  Make any payment in respect of  any
Subordinated  Debt, or permit any of its  Subsidiaries to make any such payment,
except in compliance with the terms of such Subordinated Debt and except (i) for
the conversion of Subordinated  Debt into equity securities of Borrower and (ii)
before June 30, 2007,  Borrower may prepay or pay principal and accrued interest
on Borrower's 5.25% Convertible  Subordinated  Notes due 2007 issued pursuant to
the Indenture dated as of June 21, 2002 by and between Borrower,  as issuer, and
The Bank of New York, as trustee,  in full, but not to exceed  $8,750,000 in the
aggregate  amount,  out of the proceeds of the Subordinated  Debt referred to in
clause (ii) of the definition of  Subordinated  Debt so long as before and after
giving effect thereto no Event of Default exists."

                         g.  The definition of "Permitted Investment"  contained
in Exhibit A to the Loan  Agreement is hereby  amended (i) by deleting the "and"
at the end of clause (h);  (ii) by deleting  the period at the end of clause (i)
and  substituting  "; and"  therefor;  and (iii)  adding  clause  (j) to read as
follows:

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                  "(j)   Investments consisting of cash deposited  in  a  demand
deposit, money market or other accounts with Bank."

                         h.  The  definition of "Permitted  Lien"  contained  in
Exhibit A to the Loan  Agreement is hereby  amended (i) by deleting the "and" at
the end of clause (i);  (ii) by deleting the period at the end of clause (j) and
substituting "; and" therefor; and (iii) adding clause (k) to read as follows:

                  "(k)   Liens  arising  under  or  granted   pursuant  to  that
Security  Agreement  dated as of March 26, 2007 by and between  Borrower and The
Bank of New York Trust Company, N.A. as in effect on the date hereof."

                         i.  The   definition  of  "Significant  Subsidiary"  is
hereby added to Exhibit A of the Loan Agreement to read as follows:

                  "'Significant Subsidiary' means, with respect to any Person, a
Subsidiary of such Person that would  constitute a  "significant  subsidiary" as
such term is defined under Rule 1-02 of  Regulation  S-X of the  Securities  and
Exchange Commission."

                         j.  The definition of "Subordinated Debt" contained  in
Exhibit  A to the Loan  Agreement  is hereby  amended  and  restated  to read as
follows:

                  "`Subordinated  Debt' means any debt incurred by Borrower that
is  subordinated  in  writing  to the debt  owing by  Borrower  to Bank on terms
reasonably  acceptable  to Bank (and  identified  as being such by Borrower  and
Bank).  Borrower and Bank hereby identify as "Subordinated  Debt" Borrower's (i)
5.25% Convertible  Subordinated Notes due 2007 in the aggregate principal amount
not to exceed  $35,500,000 issued pursuant to the Indenture dated as of June 21,
2002 by and between Borrower,  as issuer,  and The Bank of New York, as trustee,
and (ii) 6.25%  Convertible  Senior  Subordinated  Secured Notes due 2027 in the
aggregate  principal  amount not to exceed  $25,750,000  issued  pursuant to the
Indenture dated as of March 26, 2007 by and between Borrower, as issuer, and The
Bank of New York Trust  Company,  N.A.,  as  trustee.  Borrower  and Bank hereby
designate  the  Obligations  as  "Designated  Senior  Debt" for  purposes of the
Indenture referred to in clause (i) and as "Senior Indebtedness" for purposes of
the Indentures referred to herein."

                         k.  Exhibit  B  to  the  Loan   Agreement   (Collateral
Description  Attachment to Loan and Security  Agreement)  is hereby  deleted and
replaced with Exhibit B in the form attached to this Amendment.

                  3.  Ratification and Reaffirmation of Liens.  Borrower  hereby
ratifies and reaffirms the validity and  enforceability  of all of the liens and
security  interests  heretofore  granted  pursuant  to the  Loan  Documents,  as
collateral security for the Obligations,  and acknowledge that all of such liens
and security  interests,  and all Collateral  heretofore pledged as security for
the Obligations, continues to be and remains Collateral for the Obligations from
and after the date hereof.

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                  4.  Representations  And Warranties.  Borrower  represents and
warrants  that its  representations  and  warranties  in the Loan  Documents (as
amended hereby) continue to be true and complete in all material  respects as of
the date hereof after giving effect to this Amendment (except to the extent such
specifically  relate to  another  date)  and that the  execution,  delivery  and
performance of this Amendment are duly authorized, do not require the consent or
approval  of any  governmental  body  or  regulatory  authority  and  are not in
contravention  of or in  conflict  with  any law or  regulation  or any  term or
provision of any other  agreement  entered into by  Borrower.  Borrower  further
represents  and warrants that, as of the date hereof after giving effect to this
Amendment, no Event of Default has occurred and is continuing.

                  5. Full  Force And  Effect;  Entire  Agreement.  Except to the
extent  expressly  provided in this  Amendment,  the terms and conditions of the
Loan  Agreement  and the other  Loan  Documents  shall  remain in full force and
effect.  This Amendment and the other Loan Documents  constitute and contain the
entire  agreement  of the  parties  hereto  and  supersede  any  and  all  prior
agreements,  negotiations,  correspondence,  understandings  and  communications
between the parties,  whether  written or oral,  respecting  the subject  matter
hereof.  The parties hereto  further agree that the Loan Documents  comprise the
entire  agreement  of the  parties  thereto  and  supersede  any and  all  prior
agreements,    negotiations,    correspondence,    understandings    and   other
communications  between the parties thereto,  whether written or oral respecting
the  extension of credit by Bank to Borrower  and/or its  affiliates.  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 Loan  Agreement or any other Loan  Document as
in effect prior to the date hereof.

                  6. Counterparts; Effectiveness. This Amendment may be executed
in any number of  counterparts,  each of which when so delivered shall be deemed
an original,  but all such counterparts  taken together shall constitute but one
and the same instrument.  This Amendment is effective as of the date first above
written;  provided that, as a condition  precedent to the  effectiveness of this
Amendment,  (i) there shall have been no material adverse change in the business
operations   or  condition   (financial   or  otherwise)  of  Borrower  and  its
Subsidiaries  taken  as a whole,  no  material  impairment  of the  prospect  of
repayment  of any  portion of the  Obligations  owing to Bank,  and no  material
impairment of the value or priority of the security  interest in the  Collateral
and (ii) Bank shall have received,  in form and substance  satisfactory to Bank,
the following:

                         (a)   this Amendment, duly executed by Borrower;

                         (b)   that Intercreditor  and  Subordination  Agreement
dated as of the date hereof by and among Bank,  The Bank of New York, as trustee
thereunder, and Borrower;

                         (c)   that  Intellectual  Property  Security  Agreement
dated as of the date hereof by and between Borrower and Bank;

                         (d)   that Guaranty dated as of the date hereof by  and
between Electroglas International, Inc. and Bank;

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<PAGE>

                         (e)   that Guarantor Security Agreement dated as of the
date hereof by and between Electroglas
International, Inc. and Bank;

                         (f)   such  documentation  as  Bank  shall  request  to
establish  the blocked  money market  account  referred to in Section 2a of this
Amendment;

                         (g)   an executed copy of each of  the  Indenture,  the
Security Agreement and Intellectual  Property Security Agreement,  each dated as
of March  26,  2007 by and  between  Borrower  and The  Bank of New  York  Trust
Company, N.A., as trustee; and

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



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<PAGE>


         IN  WITNESS  WHEREOF,  each  of the  parties  hereto  has  caused  this
Amendment to be executed and delivered by its duly authorized  officer as of the
date first written above.



                                          BORROWER:

                                          ELECTROGLAS, INC.

                                          By: /s/ Thomas E. Brunton
                                              ----------------------------------

                                          Title: Chief Financial Officer
                                                 -------------------------------



                                          BANK:

                                          COMERICA BANK

                                          By: /s/ Robert Shutt
                                              ----------------------------------

                                          Title: Senior Vice President
                                                 -------------------------------



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DEBTOR:                  ELECTROGLAS, INC.

SECURED PARTY:           COMERICA BANK

                                    EXHIBIT B

                      COLLATERAL DESCRIPTION ATTACHMENT TO
                           LOAN AND SECURITY AGREEMENT


         All  personal  property  and real  property  and  fixtures  of Borrower
(herein  referred to as "Borrower" or "Debtor")  whether  presently  existing or
hereafter created or acquired, and wherever located,  including, but not limited
to:

         (a) all accounts (including health-care-insurance receivables), chattel
paper  (including  tangible and electronic  chattel  paper),  deposit  accounts,
documents (including negotiable documents),  equipment (including all accessions
and additions thereto),  general intangibles  (including payment intangibles and
software), goods (including fixtures), instruments (including promissory notes),
inventory (including all goods held for sale or lease or to be furnished under a
contract of  service,  and  including  returns  and  repossessions),  investment
property (including  securities and securities  entitlements),  letter of credit
rights,  money, and all of Debtor's books and records with respect to any of the
foregoing, and the computers and equipment containing said books and records;

         (b)  all   common   law  and   statutory   copyrights   and   copyright
registrations, applications for registration, now existing or hereafter arising,
in the United States of America or in any foreign  jurisdiction,  obtained or to
be obtained on or in connection with any of the foregoing,  or any parts thereof
or any underlying or component  elements of any of the foregoing,  together with
the right to copyright and all rights to renew or extend such copyrights and the
right (but not the obligation) of Secured Party to sue in its own name and/or in
the name of the Debtor for past, present and future infringements of copyright;

         (c) all  trademarks,  service marks,  trade names and service names and
the goodwill associated therewith,  together with the right to trademark and all
rights to renew or extend such trademarks and the right (but not the obligation)
of  Secured  Party to sue in its own name  and/or in the name of the  Debtor for
past, present and future infringements of trademark;

         (d) all (i) patents and patent  applications filed in the United States
Patent and Trademark  Office or any similar office of any foreign  jurisdiction,
and interests under patent license  agreements,  including,  without limitation,
the inventions and  improvements  described and claimed  therein,  (ii) licenses
pertaining to any patent whether  Debtor is licensor or licensee,  (iii) income,
royalties,  damages, payments, accounts and accounts receivable now or hereafter
due  and/or  payable  under  and  with  respect  thereto,   including,   without
limitation,  damages  and  payments  for past,  present or future  infringements
thereof, (iv) right (but not the obligation) to sue in the name of Debtor and/or
in the name of Secured Party for past, present and future infringements thereof,
(v) rights  corresponding  thereto  throughout the world in all jurisdictions in
which  such  patents  have  been  issued  or  applied  for,  and (vi)  reissues,
divisions,  continuations,  renewals,  extensions and continuations-in-part with
respect to any of the foregoing; and

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         (e) any and all cash  proceeds  and/or  noncash  proceeds of any of the
foregoing,  including, without limitation,  insurance proceeds, all accounts and
general  intangibles that consist of rights to payment from the sale,  licensing
or disposition of all or any part of, or rights in, the  Intellectual  Property,
and all  supporting  obligations  and the security  therefor or for any right to
payment.  All terms  above  have the  meanings  given to them in the  California
Uniform Commercial Code, as amended or supplemented from time to time.

         Notwithstanding the foregoing,  the Collateral shall not include 35% of
the capital stock of any foreign (non-U.S.) Subsidiary.



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