Document:

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                                                                    EXHIBIT 10.1

                            DATED 20th NOVEMBER 2002

                THE PARTIES WHOSE NAMES ARE SET OUT IN SCHEDULE 1

                           INFINITI SOLUTIONS PTE LTD

                        AUTOMATED TECHNOLOGY (PHIL.) INC.

                              GLOBAL CROWN LIMITED

                         FINETECH INTERNATIONAL LIMITED

                                GOLD DAWN LIMITED

                                       and

                              MAYON CAPITAL LIMITED

                  --------------------------------------------

                            SHARE PURCHASE AGREEMENT
                                  IN RESPECT OF
                              GLOBAL CROWN LIMITED
                         FINETECH INTERNATIONAL LIMITED
                                GOLD DAWN LIMITED
                              MAYON CAPITAL LIMITED

                   -------------------------------------------

BAKER & M.KENZIE.WONG & LEOW                         ROMULO MABANTA BUENAVENTURA
    INTERNATIONAL LAWYERS                               SAYOC & DE LOS ANGELES

       ASSOCIATED WITH                                   30/F Citibank Tower
      BAKER & M.KENZIE                                   8741 Paseo de Roxas
                                                            City of Makati
   1 Temasek Avenue #27-01                                   PHILIPPINES
       Millenia Tower                                 Telephone: (632) 848 0114
      SINGAPORE 039192                                Facsimile: (632) 810 3110
  Telephone: (65) 6338 1888
  Facsimile: (65) 6337 5100
                                                        ACTING FOR THE VENDORS
  ACTING FOR THE PURCHASER

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                                    CONTENTS
<TABLE>
<CAPTION>
CLAUSES                                                                    PAGES
-------                                                                    -----
<S>                                                                        <C>
1.  Definitions and Interpretation                                            3
2.  Sale of Sale Shares                                                       9
3.  Consideration                                                             9
4.  Conditions                                                               10
5.  Completion                                                               13
6.  Obligations of the Vendors                                               16
7.  Covenant in Respect of Environmental Matters                             18
8.  Pre-Completion Obligations                                               19
9.  Confidentiality                                                          24
10. Costs                                                                    24
11. General                                                                  25
12. Notices                                                                  26
13. Governing Law and Dispute Resolution                                     27

SCHEDULE 1  Details of the Vendors........................................   27
SCHEDULE 2  Brief Details of the Company and the BVI Companies............   30
SCHEDULE 3  Shareholding of the Purchaser (referred to in Clause 3.2).....   33
SCHEDULE 4  The Investee Companies........................................   34
            Blue Sky Integrated Designs, Inc..............................   35
SCHEDULE 5  The Properties................................................   36
SCHEDULE 6  Continuing Employees..........................................   37
SCHEDULE 7  WARRANTIES OF THE VENDORS.....................................   38
SCHEDULE 8  WARRANTIES OF THE PURCHASER...................................   56
SCHEDULE 9  Personal Guarantees...........................................   80
SCHEDULE 10 Form of Promissory Note.......................................   81
EXECUTION PAGE                                                               85
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                                       i
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DATE: 20 NOVEMBER 2002

PARTIES:

(1)   THE PARTIES WHOSE NAMES ARE SET OUT IN COLUMNS 1 OF SCHEDULE 1 IN RELATION
      TO EACH BVI COMPANY (defined below) represented herein by their duly
      appointed attorney-in-fact, Renato Marfori Tanseco, Filipino, of legal age
      and with address at 1453 Calumpang Street, Dasmarinas Village, Makati
      City, Philippines;

      (collectively the "VENDORS" and each, a "VENDOR");

(2)   INFINITI SOLUTIONS PTE LTD, a company incorporated in Singapore whose
      registered office is at 5001 Beach Road #07-24 Golden Mile Complex
      Singapore 199588 (the "PURCHASER");

(3)   AUTOMATED TECHNOLOGY (PHIL.) INC., a company incorporated in the
      Philippines whose registered office is at Light Industry and Science Park
      of the Philippines, Cabuyao, Laguna, Philippines (the "COMPANY");

(4)   GLOBAL CROWN LIMITED, a company incorporated in the British Virgin Islands
      with International Business Company Number 177098, whose registered office
      is at Beaufort House, Tropic Isle Building, PO Box 438, Road Town,
      Tortola, British Virgin Islands ("GLOBAL");

(5)   FINETECH INTERNATIONAL LIMITED, a company incorporated in the British
      Virgin Islands with International Business Company Number 317784, whose
      registered office is at Beaufort House, Tropic Isle Building, PO Box 438,
      Road Town, Tortola, British Virgin Islands ("FINETECH");

(6)   GOLD DAWN LIMITED, a company incorporated in the British Virgin Islands
      with International Business Company Number 334702, whose registered office
      is at Beaufort House, Tropic Isle Building, PO Box 438, Road Town,
      Tortola, British Virgin Islands ("GOLD DAWN");

(7)   MAYON CAPITAL LIMITED, a company incorporated in the British Virgin
      Islands with International Business Company Number 297541, whose
      registered office is at Beaufort House, Tropic Isle Building, PO Box 438,
      Road Town, Tortola, British Virgin Islands ("MAYON"),

      ("GLOBAL", "FINETECH", "GOLD DAWN" and "MAYON" shall hereinafter be
      referred to as the "BVI COMPANIES", and "BVI COMPANY" refers to each or
      any one of them).

(collectively, the "PARTIES" and each, a "PARTY").

                                       2
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RECITALS:

(A)   The Vendors are the registered and beneficial owners of all of the
      outstanding and issued capital in the capital of the BVI Companies.
      Limited particulars of the BVI Companies are set out in Schedule 2.

(B)   The BVI Companies are the registered and beneficial owners of all the
      issued capital stock in the Company. Limited particulars of the Company
      are set out in Schedule 2.

(C)   The Vendors wish to sell and the Purchaser wishes to purchase all of the
      said outstanding and issued capital of the BVI Companies on the terms and
      conditions set out in this Agreement.

TERMS AGREED:

1.    DEFINITIONS AND INTERPRETATION

1.1   In this Agreement where the context so admits the following words and
      expressions shall have the following meanings:

      "ACCOUNTING DATE"                 31 December 2001;

      "ACCOUNTS"                        the audited consolidated financial
                                        statements of the Company and of each of
                                        the Investee Companies for the
                                        accounting reference period which ended
                                        on the Accounting Date (each such
                                        financial statement comprising a balance
                                        sheet, profit and loss account, cash
                                        flow statement, notes and directors' and
                                        auditors' report) and the consolidated
                                        profit and loss account and consolidated
                                        balance sheet of the Company and the
                                        Investee Companies as at and for the
                                        period ending on the Accounting Date;

      "AML TRADING LIMITED"             a Vendor, which is a company
                                        incorporated in the British Virgin
                                        Islands with International Business
                                        Company Number 386647 whose registered
                                        office is at Beaufort House, Tropic Isle
                                        Building, PO Box 438, Road Town,
                                        Tortola, British Virgin Islands;

      "BASKET"                          shall have the meaning ascribed to it in
                                        Clause (1)(iii) of Schedule 7;

      "BVI COMPANIES DIRECTORS"         the persons listed as directors of the
                                        BVI Companies in Schedule 2;

      "COMPANY DIRECTORS"               the persons listed as directors of the
                                        Company in

                                        3
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                                        Schedule 2;

"COMPANIES ACT"                         the Companies Act of Singapore (Cap.
                                        50);

"COMPLETION"                            completion of the sale and purchase of
                                        the Sale Shares as specified in Clause
                                        5;

"COMPLETION DATE"                       16 December 2002 (or such later date as
                                        the Vendors and the Purchaser may
                                        agree);

"CONDITIONS"                            the conditions specified in Clause 4.1;

"CONFIDENTIAL INFORMATION"              know-how, trade secrets and other
                                        information of a confidential nature,
                                        wherever in the world protectable;

"CONSIDERATION SHARES"                  shall have the meaning ascribed to it in
                                        Clause 3.1(a);

"CONTINUING EMPLOYEES"                  the employees of the Company whose names
                                        are listed in Schedule 6;

"DISCLOSURE LETTER"                     the letter to be dated the Completion
                                        Date from the Vendors to the Purchaser
                                        in the approved terms;

"ENCUMBRANCE"                           any form of legal, equitable or security
                                        interests, including but not limited to
                                        any mortgage, assignment of receivables,
                                        debenture, lien, charge, pledge, title
                                        retention, right to acquire, security
                                        interest, hypothecation, options, rights
                                        of first refusal, any preference
                                        arrangement (including title transfers
                                        and retention arrangements or otherwise)
                                        and any other encumbrance or condition
                                        whatsoever or any other arrangements
                                        having similar effect;

"ENVIRONMENT"                           all or any of the following media,
                                        namely, the air, water and land; and the
                                        medium of air includes the air within
                                        buildings and the air within other
                                        natural or man-made structures above or
                                        below ground;

"ENVIRONMENTAL BREACH"                  shall have the meaning ascribed to it in
                                        Clause 7.1(b);

"ENVIRONMENTAL LAW"                     all and any applicable laws, common law,
                                        statutes, directives, regulations,
                                        notices, standards having force of law,
                                        codes of practice, guidance notes,
                                        by-laws, judgments, decrees or orders
                                        relating to (a) pollution, contamination
                                        or protection of the

                                        4
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                                        Environment or (b) the storage,
                                        labelling, handling, release, treatment,
                                        manufacture, processing, deposit,
                                        transportation or disposal of Hazardous
                                        Substances or (c) the responsibility or
                                        duty of care for waste;

"ENVIRONMENTAL LICENCE"                 any permit, licence, authorization,
                                        consent or other approval, that may be
                                        required by any Environmental Law;

"EQUITY INCENTIVE PLAN"                 the 2002 Equity Incentive Plan of the
                                        Purchaser established in accordance with
                                        the Investment Agreement and adopted by
                                        the shareholders of the Purchaser on 15
                                        April 2002;

"GROUP"                                 the group of companies comprising the
                                        BVI Companies, the Company and its
                                        Investee Companies. The expression
                                        "MEMBER OF THE GROUP" shall be construed
                                        accordingly;

"GOVERNMENTAL APPROVAL"                 any authorization, consent, approval,
                                        registration, filing, certificate,
                                        license, permit or exemption from, by or
                                        with any Government Authority, or
                                        otherwise pursuant to any applicable law
                                        or regulation, whether given or withheld
                                        by express action or deemed given or
                                        withheld by failure to act within any
                                        specified time period;

"GOVERNMENT AUTHORITY"                  any governmental, state or other
                                        political subdivision thereof, or any
                                        entity exercising or entitled to
                                        exercise executive, legislative,
                                        judicial, regulatory or administrative
                                        functions of or pertaining to
                                        government;

"HAZARDOUS SUBSTANCES"                  all substances of whatever description
                                        which may cause or have a harmful effect
                                        on the Environment or the health of man
                                        or any other living organism including,
                                        without limitation, all poisonous,
                                        toxic, noxious, dangerous and offensive
                                        substances;

"INDEMNIFIED PURCHASERS"                shall have the meaning ascribed to it in
                                        Clause (d) of Schedule 7;

"INDEMNIFIED VENDORS"                   shall have the meaning ascribed to it in
                                        Clause (e) of Schedule 8;

"INTELLECTUAL PROPERTY"                 includes Confidential Information,
                                        patents, registered designs, copyrights,
                                        rights in databases, design rights,
                                        protected layout-design rights,
                                        topography rights, trade marks, business
                                        names,

                                        5
<PAGE>

                                        registrations of and applications
                                        to register any of the aforesaid items,
                                        rights in the nature of any of the
                                        aforesaid items in any country, rights
                                        in the nature of unfair competition
                                        rights and rights to sue for passing
                                        off, in each case wherever in the world
                                        enforceable;

"INVESTEE COMPANIES"                    the subsidiaries of the Company and any
                                        other companies in which the Company has
                                        an interest, short particulars of which
                                        are set out in Schedule 4;

"INVESTMENT AGREEMENT"                  the investment agreement dated 30
                                        November 2001 in respect of the
                                        Purchaser entered into between the
                                        Purchaser, 3i Group plc, 3i Asia Pacific
                                        Technology LP, EDB Investments Pte Ltd,
                                        Inderjit Singh, Kong Kah Chin, Francis
                                        Swee Yong Khim and Felix Joseph
                                        Gnanapragasam (together with any
                                        amendments thereto);

"MANAGEMENT ACCOUNTS"                   the unaudited consolidated balance sheet
                                        of the Company and the Investee
                                        Companies as at 31 October 2002 and the
                                        unaudited consolidated profit and loss
                                        account of the Company and of each of
                                        the Investee Companies for the period
                                        ending on such date;

"OPTION SHARES"                         shall have the meaning ascribed to it
                                        in Clause 3.1(d);

"PERSONAL GUARANTEES"                   the guarantees or other security in
                                        place as at the date of this Agreement
                                        and which are listed in Schedule 9;

"PHP"                                   means Philippines pesos, the lawful
                                        currency of the Philippines;

"PROCEEDING"                            any action, arbitration, audit,
                                        examination, investigation, hearing,
                                        litigation or suit (whether civil,
                                        criminal, administrative, judicial or
                                        investigative, whether formal or
                                        informal, and whether public or private)
                                        commenced, brought or conducted or heard
                                        by or before, or otherwise involving,
                                        any Government Authority or arbitrator;

"PROMISSORY NOTE"                       shall mean the form of promissory note
                                        to be executed by the Purchaser and made
                                        in favour of AML Trading Limited which
                                        shall be substantially in the form set
                                        forth in Schedule 10;

                                        6
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"PROPERTIES"                            the properties owned or leased by the
                                        Company or any of the Investee
                                        Companies, short particulars of which
                                        are set out in Schedule 5;

"PURCHASER'S BASKET"                    shall have the meaning ascribed to it in
                                        Clause (d) of Schedule 8;

"PURCHASER'S DISCLOSURE LETTER"         the letter to be dated the Completion
                                        Date from the Purchaser to the Vendors
                                        in the approved terms;

"PURCHASER'S LAWYERS"                   Baker & McKenzie. Wong & Leow, of 1
                                        Temasek Avenue #27-01, Millenia Tower,
                                        Singapore 039192;

"PURCHASER'S WARRANTIES"                shall have the meaning ascribed to it in
                                        Clause (a) of Schedule 8;

"RELEVANT VIKO INSTALLMENT"             shall have the meaning ascribed to it in
                                        Clause 5.3(e);

"REMEDIAL ACTION"                       investigating, removing, remedying,
                                        cleaning up, abating, containing,
                                        controlling or ameliorating the presence
                                        in, or effect on, the Environment of,
                                        any pollution or contamination
                                        (including, where necessary, obtaining
                                        expert technical and legal advice in
                                        relation thereto);

"SALE SHARES"                           all the issued and paid up shares of par
                                        value US$1.00 each in the capital of the
                                        BVI Companies owned by the Vendors (in
                                        the proportion set out in Schedule 1 in
                                        relation to each BVI Company);

"SHAREHOLDERS AGREEMENT"                shall have the meaning ascribed to it in
                                        Clause 4.1(i);

"TAX"                                   all forms of taxation, withholdings,
                                        duties, imposts, levies, social security
                                        contributions and rates imposed by any
                                        local, municipal, governmental, state,
                                        federal, or other body in the
                                        Philippines or elsewhere and any
                                        interest, penalty, surcharge or fine in
                                        connection therewith;

"TAX WARRANTIES"                        shall have the meaning ascribed to it in
                                        Clause (1)(i)(1) in Schedule 7;

"THIRD PARTY CONFIDENTIAL               any Confidential Information insofar as
INFORMATION"                            it relates to and is proprietary and
                                        confidential to a third party;

                                       7
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"US$"                                   the lawful currency of the United States
                                        of America;

"VENDORS' LAWYERS"                      Romulo Mabanta Buenaventura Sayoc & De
                                        Los Angeles of 30/F, Citibank Tower,
                                        8741 Paseo de Roxas, City of Makati,
                                        Philippines;

"VIKO TECHNOLOGY, INC."                 a California corporation, whose entire
                                        issued and outstanding capital is owned
                                        by the Purchaser;

"VIKO SHARE PURCHASE                    the Share Purchase Agreement executed
AGREEMENT"                              between the Purchaser and shareholders
                                        of Viko Technology, Inc. dated December
                                        18, 2001; and

"WARRANTIES"                            the representations, warranties and
                                        undertakings contained or referred to in
                                        Schedule 7.

1.2   Save where the context otherwise requires, words and phrases the
      definitions of which are contained or referred to in the Companies Act
      shall be construed as having the meaning thereby attributed to them.

1.3   Any references, express or implied, to statutes or statutory provisions
      shall be construed as references to those statutes or provisions as
      respectively amended or re-enacted or as their application is modified
      from time to time by other provisions (whether before or after the date
      hereof) and shall include any statutes or provisions of which they are
      re-enactments (whether with or without modification) and any orders,
      regulations, instruments or other subordinate legislation under the
      relevant statute or statutory provision. References to sections of
      consolidating legislation shall wherever necessary or appropriate in the
      context be construed as including references to the sections of the
      previous legislation from which the consolidating legislation has been
      prepared.

1.4   References in this Agreement to clauses and schedules are to clauses in
      and schedules to this Agreement (unless the context otherwise requires).
      The recitals and schedules to this Agreement shall be deemed to form part
      of this Agreement.

1.5   Headings are inserted for convenience only and shall not affect the
      construction of this Agreement.

1.6   The expression "THE VENDORS" includes their respective personal
      representatives, successors and assigns and the expression "THE
      PURCHASER", the "BVI COMPANIES" and the "COMPANY" includes each of their
      successors and assigns.

1.7   References to "PERSONS" shall include bodies corporate, unincorporated
      associations and partnerships (whether or not having separate legal
      personality).

1.8   References to writing shall include any methods of reproducing words in a
      legible and non-transitory form.

                                       8
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1.9   The masculine gender shall include the feminine and neuter and the
      singular number shall include the plural and vice versa.

1.10  All warranties, representations, indemnities, covenants, agreements and
      obligations given or entered into by more than one person are given or
      entered into jointly and severally.

1.11  A document expressed to be "IN THE APPROVED TERMS" means a document the
      terms of which have been approved by or on behalf of the Vendors and the
      Purchaser.

2.    SALE OF SALE SHARES

2.1   Subject to the terms of this Agreement, each of the Vendors as legal and
      beneficial owners shall sell and the Purchaser shall purchase, free from
      all liens, charges and encumbrances and together with all rights now or
      hereafter attaching to them, including all rights to any dividend or other
      distribution declared, made or paid after the date of this Agreement, the
      number of Sale Shares set opposite each Vendor's name in column 2 of
      Schedule 1 in relation to all the BVI Companies and shall transfer his
      legal and beneficial ownership in respect of the Sale Shares to the
      Purchaser accordingly.

2.2   Each of the Vendors hereby waives and agrees to procure the waiver of any
      restrictions on transfer (including pre-emption rights) which may exist in
      relation to the Sale Shares, whether under the articles of association,
      by-laws or other equivalent constitutive documents of the BVI Companies or
      otherwise.

3.    CONSIDERATION

3.1   The consideration for sale and purchase of all the Sale Shares shall be
      satisfied in the following manner:

      (a)   the Purchaser shall issue and allot 4,442,499 ordinary shares of par
            value US$0.10 each in the capital of the Purchaser (the
            "CONSIDERATION SHARES"), fully paid up, to the Vendors or their
            nominees at Completion in a manner consistent with the numbers set
            out in Schedule 3;

      (b)   the Purchaser shall procure or arrange for payment to AML Trading
            Limited (whose receipt the Vendors acknowledge and agree shall be an
            absolute discharge of the Purchaser's payment obligation hereunder)
            of the amount of US$1,500,000 at Completion;

      (c)   the Purchaser shall procure or arrange for payment to AML Trading
            Limited (whose receipt the Vendors acknowledge and agree shall be an
            absolute discharge of the Purchaser's payment obligation hereunder)
            of the amount of:

            (i)   US$1,500,000 by the expiry of 180 days from the Completion
                  Date;

            (ii)  US$1,500,000 by the expiry of 365 days from the Completion
                  Date;

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            (iii) US$1,500,000 by the expiry of 540 days from the Completion
                  Date; and

            (iv)  US$2,000,000 by the expiry of 730 days from the Completion
                  Date.

            The Purchaser agrees that it shall pay interest on any unpaid
            consideration amounts set out in this Clause 3.1(c) at the rate of
            5% per annum for the period commencing on the Completion Date and
            ending on the date of actual payment of such amount. The interest
            payable pursuant to this Clause 3.1(c) shall be satisfied by payment
            in cash.

            The four installment payments due to AML Trading Limited pursuant to
            this Clause 3.1(c) shall be evidenced by a Promissory Note.

      (d)   the Purchaser shall procure the grant of options over 454,369
            ordinary shares of par value US$0.10 each in the capital of the
            Purchaser to management of the Company (the "OPTION SHARES") within
            three months from the Completion Date pursuant to and on terms set
            out in the Equity Incentive Plan. The allocation of the Option
            Shares shall be mutually agreed between the Vendors and the
            Purchaser prior to Completion and the parties agree to use all
            reasonable endeavours, after Completion, to conform the Equity
            Incentive Plan to the extent necessary in order to be in compliance
            with the laws of the Philippines, and to obtain all necessary
            approvals or exemptions in the Philippines, in order that such
            Option Shares can be granted in accordance with this Clause 3.1(d).

3.2   Following the allotment of the Consideration Shares and the Option Shares
      pursuant to Clauses 3.1(a) and 3.1(d) above, the shareholding in the
      Purchaser shall be held in the proportions set out in Schedule 3.

3.3   Notwithstanding anything else contained in this Agreement, the parties
      agree that the Purchaser is subject to the provisions set out in Schedule
      8.

4.    CONDITIONS

4.1   The sale and purchase of the Sale Shares is conditional upon:

      (a)   the Vendors having complied fully with the obligations specified in
            Clauses 8.1, 8.2 and 8.3 and otherwise having performed in all
            material respects all of the covenants and agreements required to be
            performed by them under this Agreement;

      (b)   the completion of all business, financial, regulatory and legal due
            diligence in relation to the Group to the satisfaction of the
            Purchaser;

      (c)   all other consents, approvals or clearances which are necessary or
            which the Purchaser has been advised that it is desirable to obtain
            to the sale and

                                       10
<PAGE>

            purchase of the Sale Shares being granted by third parties
            (including any Government Authority);

      (d)   no statute, regulation or decision which would prohibit, restrict or
            materially delay the sale and purchase of the Sale Shares or the
            operation of the Company or any of the Investee Companies after
            Completion having been proposed, enacted or taken by any Government
            Authority;

      (e)   the approval of the board of directors and shareholders of the
            Purchaser in relation to the sale and purchase of the Sale Shares
            having been obtained;

      (f)   each of the seven Continuing Employees having entered into a service
            agreement with the Company prior to the Completion Date on terms
            approved by the Purchaser and acceptable to such Continuing
            Employees;

      (g)   the Vendors and the Purchasers having agreed on the list of persons
            to whom the Option Shares are to be granted pursuant to Clause
            3.1(d);

      (h)   a rental review report on the Properties having been prepared by,
            and delivered to, the Purchaser and the Vendors by CB Richard Ellis,
            and the Company having entered into an amendment to its existing
            lease agreement(s) with the landlord of the Properties on the rental
            value and such related terms acceptable to the Purchaser, the
            Vendors and the landlord in question, provided that such amendment
            to the lease agreement(s) will record the parties' understanding
            that the terms of the existing lease agreement(s) for the Properties
            shall remain unchanged for as long as any amounts owing to AML
            Trading Ltd pursuant to Clause 3.1(c) above shall remain unpaid and
            that such amendment to the existing lease agreement(s) shall only
            become effective upon full payment by the Purchaser to AML Trading
            Ltd of the amounts owing pursuant to Clause 3.1(c) above and the
            relevant annotations having been made to the Transfer Certificate of
            Title(s) of the Properties (including without limitation, in respect
            of the Company's leasehold rights);

      (i)   the execution by such persons as the Vendors shall advise pursuant
            to Clause 3.1(a) and the other shareholders of the Purchaser of a
            shareholders agreement relating to the Purchaser on terms
            satisfactory to each of them (the "SHAREHOLDERS AGREEMENT");

      (j)   confirmation or approval having been obtained by the Company from RF
            Monolithics, Inc. that the sale of the Sale Shares shall not cause
            RF Monolithics, Inc. to terminate the Manufacturing Agreement dated
            22 February 2001 entered into with the Company;

      (k)   the Company having entered into legally binding loan agreements on
            terms acceptable to the Purchaser to re-finance its existing loan
            facilities with its existing bankers including (i) Banco De Oro (ii)
            Rizal Commercial Banking Corporation and (iii) Bank of the
            Philippine Islands, as a result of which the Personal Guarantees
            will be released;

                                       11
<PAGE>

      (l)   a certified true copy of the stock and transfer book of ATEC-KMI
            Philippines, Inc (an Investee Company) certified by the company
            secretary of ATEC-KMI Philippines, Inc. reflecting the transfer from
            Korean Microsystems, Inc of shares in ATEC-KMI Philippines, Inc. to
            Mayon Capital Limited having been provided to the Purchaser by the
            Vendors;

      (m)   confirmation from the Philippine Economic Zone Authority as to the
            continuing validity of the ecozone export enterprise status of the
            Company (including the survival of any incentives enjoyed by the
            Company pursuant to such status);

      (n)   the Company having successfully renewed all relevant licences,
            permits and registrations which have expired and are required or
            useful for the Company's operations;

      (o)   the Company and the BVI Companies having passed board and
            shareholder resolutions respectively to confirm the abandonment of
            (i) the proposed private placement exercise of the shares of the
            Company approved on 10 October 2000 to raise up to US$9,000,000 and
            (ii) plans for the restructuring and initial public offer of the
            shares of the Company;

      (p)   the Disclosure Letter having been delivered to the Purchaser by the
            Vendors, and the Purchaser's Disclosure Letter having been delivered
            to the Vendors by the Purchaser, on the Completion Date. For the
            avoidance of doubt, the Purchaser shall have the discretion to
            reject the Disclosure Letter if the contents of such Disclosure
            Letter are not satisfactory to it, and vice versa and the exercise
            of such a right of rejection by either the Purchaser or the Vendors
            (as the case may be) in good faith shall not constitute a breach of
            this Agreement; and

      (q)   confirmation having been obtained by the Purchaser from Comerica and
            Bank of California that Viko Technology, Inc. is not in breach of
            any provisions of relevant loan agreements entered into by Viko
            Technology, Inc.

4.2   The Purchaser or the Vendors may waive all or any of such conditions
      required to be fulfilled by the Vendors or the Purchaser (as the case may
      be) set out in Clause 4.1 above at any time by notice in writing to the
      Vendors' Lawyers or the Purchaser's Lawyers (as the case may be).

4.3   The Vendors and the Purchaser (as the case may be) shall use their best
      endeavours to procure the fulfilment of the Conditions required to be
      fulfilled by them or any member of the Group (in the case of the Vendors)
      on or before the Completion Date.

4.4   In the event that any of Conditions shall not have been fulfilled (or
      waived pursuant to Clause 4.2) by the Completion Date, then the Purchaser
      shall not be bound to proceed with the purchase of the Sale Shares and
      unless extended by the Purchaser in writing, this Agreement shall cease to
      be of any effect except Clauses 1, 9, 11.1, 11.2, 11.4 (insofar as
      relevant to the interpretation of this Agreement in any claim or
      proceeding

                                       12
<PAGE>

      after cessation) and 11.5, 12 and 13, which shall remain in force, and
      save in respect of claims arising out of any antecedent breach of this
      Agreement.

4.5   On the date of this Agreement each Vendor (apart from Renato Marfori
      Tanseco who shall execute this Agreement in his own capacity and AML
      Trading Limited) shall deliver to the Purchaser an original version of a
      duly executed and valid power-of-attorney coupled with an interest
      irrevocably appointing Renato Marfori Tanseco as his attorney-in-fact to
      negotiate and enter into this Agreement on the terms herein and provide
      all necessary approvals, consents, waivers, endorsements or other
      documents referred to in this Agreement, in each case, on his behalf.

5.    COMPLETION

5.1   Subject to the provisions of Clause 4, Completion shall take place on the
      Completion Date at the offices of the Purchaser's Lawyers (or some other
      place as the parties may agree) when all (but not some only) of the events
      described in this Clause 5 shall occur.

5.2   At Completion, provided that all the conditions precedent to Completion
      provided in Clause 4.1 shall have been fulfilled or otherwise waived by
      the relevant party, the Vendors shall:

      (a)   deliver (or procure the delivery of) to the Purchaser:

            (i)   duly executed transfers of its respective Sale Shares in
                  favour of the Purchaser together with the relevant share
                  certificates in respect of such Sale Shares;

            (ii)  such waivers or consents as the Purchaser may require to
                  enable the Purchaser or its nominees to be registered as
                  holders of any of the Sale Shares;

            (iii) all the corporate records, statutory and other books (duly
                  written up to date), consisting of the Articles of
                  Incorporation and the By-Laws and all amendments thereto
                  together with the corresponding Securities and Exchange
                  Commission Certificates of Registration therefor, the Stock
                  and Transfer Books, the Stock Certificate Books and the
                  Minutes Books (or their equivalent) of the BVI Companies, the
                  Company and the Investee Companies, common seals and any other
                  papers and documents of the BVI Companies, the Company or the
                  Investee Companies in their possession;

            (v)   written confirmation that the Vendors and none of the Company
                  Directors or BVI Companies Directors are aware of any matter
                  or thing which is a breach of or inconsistent with any of the
                  Warranties;

            (vi)  a legal opinion in form and substance satisfactory to the
                  Purchaser issued by the Vendors' Lawyers confirming that the
                  particulars of the Company and the Investee Companies (set out
                  in Schedule 4)

                                       13
<PAGE>

                  (including without limitation, the particulars of the
                  registered shareholders and identity of the beneficial owners
                  of the Investee Companies, if different from the registered
                  shareholders) are true and accurate in all material aspects;

           (vii)  an irrevocable proxy in favour of the Purchaser in the
                  approved terms (executed by each Vendor separately) to allow
                  the Purchaser to vote in respect of the Sale Shares while
                  ownership by the Purchaser over the Sale Shares has not been
                  recorded in the books of the BVI Companies. Such proxy shall
                  lapse as soon as the ownership of the Purchaser over the Sale
                  Shares is recorded in the books of the BVI Companies;

           (viii) the Shareholders Agreement duly executed by such persons as
                  the Vendors shall advise pursuant to Clause 3.1(a);

           (ix)   undated letters of resignation in the approved terms from all
                  the BVI Companies Directors;

           (x)    confirmation having been obtained, on terms satisfactory to
                  the Purchaser, from the corporate agent, the registered agent
                  and company secretary of each BVI Company that on the
                  Completion Date, the registers and other corporate records of
                  each BVI Company shall be updated to reflect that the
                  Purchaser shall be the sole shareholder in each BVI Company
                  and that such corporate agent, registered agent and company
                  secretary shall take instructions relating to the BVI
                  Companies only from the Purchaser or the Purchaser's
                  representatives;

           (xi)   a certified true copy of a resolution passed by the board of
                  directors of each BVI Company and AML Trading Limited, and
                  certified by its respective company secretary, approving the
                  execution of this Agreement and authorising Renato Marfori
                  Tanseco to negotiate and enter into this Agreement on the
                  terms herein and provide all necessary approvals, consents,
                  waivers, endorsements or other documents referred to in this
                  Agreement, in each case, on its behalf, and approving the
                  transfers of the Sale Shares in favour of the Purchaser;

           (xii)  a certified true copy of a resolution passed by the board of
                  directors of the Company, and certified by its company
                  secretary, approving the execution of this Agreement and
                  authorising Antonio Boglosa Villaruel to negotiate and enter
                  into this Agreement on the terms herein and provide all
                  necessary approvals, consents, waivers, endorsements or other
                  documents referred to in this Agreement on its behalf, and
                  approving the transfers of the Sale Shares in favour of the
                  Purchaser;

           (xiii) the executed service agreements with the Continuing Employees
                  pursuant to Clause 4.1(f); and

           (xiv)  any other document required to vest title in the Sale Shares
                  to the Purchaser.

                                       14
<PAGE>

      (b)   do and execute or procure to be done and executed all such further
            acts, deeds, documents and things as may be necessary to give effect
            to the terms of this Agreement (including the sale of the Sale
            Shares).

5.3   At Completion, the Purchaser shall:

      (a)   allot the Consideration Shares in accordance with Clause 3.1(a)
            above, and shall deliver to the Vendors the share certificates in
            respect of the Consideration Shares;

      (b)   deliver to the Vendors a bankers' draft for, or arrange for payment
            by telegraphic transfer of, the sum of US$1,500,000 to AML Trading
            Limited, or the bank account specified by AML Trading Limited in
            writing to the Purchaser at least three business days before the
            Completion Date (as the case may be);

      (c)   deliver to the Vendors the Promissory Note required to be delivered
            under Clause 3.1(c) of this Agreement and the Shareholders Agreement
            duly executed by it;

      (d)   deliver to the Vendors written confirmation that the Purchaser and
            none of the directors of the Purchaser are aware of any matter or
            thing which is a breach of or inconsistent with any of the
            Purchaser's Warranties;

      (e)   to the extent that Completion takes place before 18 December 2002
            and the instalment payment of US$5,000,000 due to be paid to the
            shareholders of Viko Technology, Inc on 18 December 2002 pursuant to
            the Viko Share Purchase Agreement ("RELEVANT VIKO INSTALLMENT")
            shall not have been paid by the Purchaser, deliver an undertaking to
            the Vendors that the Purchaser shall make payment of the Relevant
            Viko Installment on or before 18 December 2002;

      (f)   deliver to the Vendors written confirmation from the financial
            institution re-financing the Company's loan facilities referred to
            in Clause 4.1(k) that the re-financing has been approved and will
            proceed subject to satisfaction of any applicable conditions
            precedent, including without limitation Completion of this
            Agreement; and

      (g)   deliver to the Vendors any other document required to vest title in
            the Consideration Shares to the Vendors.

      For the purposes of this Clause 5.3, delivery to the Vendors of the items
      required under Clauses 5.3(a) to 5.3(f) inclusive shall be satisfied by
      the Purchaser making delivery to the Vendors' nominee, as advised by the
      Vendors to the Purchaser prior to the Completion Date.

5.4   Without prejudice to any other remedies available to either the Purchaser
      or the Vendors, if in any respect the provisions of Clause 5 are not
      complied with by either the Purchaser or the Vendors on the Completion
      Date, the non-defaulting party may:

                                       15
<PAGE>

      (a)   defer Completion to a date not more than 28 days after the
            Completion Date (and so that the provisions of this Clause 5.4 shall
            apply to Completion as so deferred);

      (b)   proceed to Completion so far as practicable (without prejudice to
            its rights under this Agreement); or

      (c)   rescind this Agreement.

5.5   The parties agree and shall procure that upon Completion and for a period
      of two years after Completion, the board of directors of the Company shall
      be reconstituted and shall consist of:

      (a)   Renato Marfori Tanseco (who shall also be appointed as chairman of
            the board of Directors);

      (b)   Inderjit Singh (who shall also be appointed as Chief Executive
            Officer of the Company) or such other person as the Purchaser may
            nominate; and

      (c)   three persons to be nominated by the Purchaser in compliance, and in
            a manner consistent, with the laws of the Philippines.

      Further, the parties agree, and shall procure that upon Completion, the
      board of directors of each of the BVI Companies shall be reorganised
      according to the Purchaser's instructions and in compliance, and in a
      manner consistent with, the laws of the British Virgin Islands.

5.6   The parties agree that as soon as reasonably practicable after the
      Completion Date, the Investee Companies shall be liquidated in accordance
      with the laws of the Philippines.

6.    OBLIGATIONS OF THE VENDORS

6.1   Each of the Vendors undertakes with the Purchaser that, except with the
      consent in writing of the Purchaser and subject to the provisions of
      Clause 6.3:

      (a)   for a period of three years after Completion with respect to Renato
            Marfori Tanseco and Antonio Boglosa Villaruel and for a period of
            two years with respect to the other Vendors who as at the date of
            this Agreement were employed by the Company, he will not within any
            country in which any member of the Group or the Purchaser has
            carried on business during the year preceding Completion either on
            his own account or in conjunction with or on behalf of any person,
            firm or company carry on or be engaged, concerned or interested,
            directly or indirectly, whether as shareholder, partner, agent or
            otherwise in carrying on any business which competes with the
            business carried on by any member of the Group or the Purchaser at
            Completion (other than (i) as a holder of shares in the Purchaser or
            (ii) as a holder of not more than one per cent of the issued shares
            or debentures of any company carrying on such a business listed on a
            stock exchange);

                                       16
<PAGE>

      (b)   for a period of three years after Completion with respect to Renato
            Marfori Tanseco and Antonio Boglosa Villaruel and for a period of
            two years with respect to the other Vendors who as at the date of
            this Agreement were employed by the Company, he will not either on
            his own account or in conjunction with or on behalf of any other
            person, firm or company solicit or entice away or attempt to solicit
            or entice away from any member of the Group or the Purchaser the
            custom of any person, firm, company or organisation who shall at any
            time within the year preceding Completion have been a customer,
            identified prospective customer, representative, agent, or
            correspondent of any member of the Group or the Purchaser, or in the
            habit of dealing with any member of the Group or the Purchaser, or
            enter into any contract for sale and purchase or accept business
            from any such person, firm, company or organisation in a business
            area in which any members of the Group or the Purchaser competes;

      (c)   for a period of three years after Completion with respect to Renato
            Marfori Tanseco and Antonio Boglosa Villaruel and for a period of
            two years with respect to the other Vendors who as at the date of
            this Agreement were employed by the Company, he will not either on
            his own account or in conjunction with or on behalf of any other
            person, firm or company employ, engage, solicit, entice away or
            attempt to employ, engage, solicit or entice away from any member of
            the Group or the Purchaser any person employed in a managerial,
            supervisory, technical or sales capacity by, or engaged as a
            consultant to, any member of the Group or the Purchaser at
            Completion or at any time during the period of 12 months immediately
            preceding Completion (whether or not such person would commit a
            breach of contract by reason of leaving such employment or
            engagement);

      (d)   he will not at any time hereafter make use of or disclose or divulge
            to any person (other than to officers or employees of the Company or
            any of the Investee Companies whose province it is to know the same)
            any information (other than any information properly and generally
            available to the public or disclosed or divulged pursuant to any
            legal process of which is required to be disclosed or divulged
            pursuant to or in accordance with the order of a court of competent
            jurisdiction or of any Government Authority or pursuant to the
            requirements of any stock exchange or securities council) relating
            to any member of the Group or the Purchaser, the identity of their
            customers and suppliers, their products, finance, contractual
            arrangements, business or methods of business and shall use its best
            endeavours to prevent the publication or disclosure of any such
            information by any person, firm or company with which he is
            connected or over which he has control (either directly or
            indirectly);

      (e)   if, in connection with the business or affairs of any member of the
            Group or the Purchaser, he shall have obtained Confidential
            Information belonging to any third party under an agreement
            purporting to bind any member of the Group or the Purchaser which
            contained restrictions on disclosure, he will not without the
            previous written consent of the Purchaser at any time infringe such
            restrictions; and

                                       17
<PAGE>

      (f)   he will not at any time hereafter in relation to any trade, business
            or company (save as a holder of shares in the Purchaser) use a name
            or trade mark or any words confusingly similar thereto in such a way
            as to be capable of or likely to be confused with the name or any
            trade mark of any member of the Group or the Purchaser and shall use
            his best endeavours to procure that no such name or trade mark shall
            be used by any person, firm or company with which he is connected or
            over which he has control (either directly or indirectly).

6.2   While the restrictions contained in this Clause 6 are considered by the
      parties to be reasonable in all the circumstances, it is recognised that
      restrictions of the nature in question may fail for technical reasons and
      accordingly it is hereby agreed and declared that if any of such
      restrictions shall be adjudged to be void as going beyond what is
      reasonable in all the circumstances for the protection of the interests of
      the Purchaser but would be valid if part of the wording thereof were
      deleted or the periods thereof reduced or the range of activities or area
      dealt with thereby reduced in scope the said restriction shall apply with
      such modifications as may be necessary to make it valid and effective.

6.3   The restrictions contained in Clause 6.1 shall be without prejudice to
      performance by and shall not limit the restrictions on the Continuing
      Employees under the terms of agreements entered into pursuant to this
      Agreement.

6.4   Notwithstanding anything else contained in this Agreement, the parties
      agree that the Vendors are subject to the provisions set out in Schedule
      7.

7.    COVENANT IN RESPECT OF ENVIRONMENTAL MATTERS

7.1   Each of the Vendors hereby covenants with and undertakes to indemnify the
      Purchaser and every member of the Group fully on demand and to keep them
      indemnified against any and all penalties, fines and charges imposed on
      any member of the Group by any relevant court order or judgment of a
      Government Authority or other regulatory authority, or any and all
      damages, liabilities, losses, costs and expenses incurred, suffered or
      sustained by any member of the Group as a result of any relevant court
      order or judgment or any relevant request or demand of a Philippine
      Government Authority or other regulatory authority, and legal or
      professional fees and disbursements reasonably incurred (on a full
      indemnity basis) arising out of any of the following:

      (a)   any failure by any member of the Group to comply with all Philippine
            Environmental Laws at any time on or before the Completion Date; or

      (b)   any discharge, release, leaching, emission, or escape into the
            Environment on or before the Completion Date of any Hazardous
            Substances or any substance regulated by Philippine Environmental
            Law ("ENVIRONMENTAL BREACH") which has occurred or is occurring in
            the conduct of the business of any member of the Group prior to the
            Completion Date or in the conduct by any member of the Group of any
            former business or in connection with or in relation to any assets
            of any member of the Group or in connection with or in relation to
            any

                                       18
<PAGE>

            former assets of any member of the Group where such environmental
            breach is proven to have occurred while such former assets were in
            the ownership or under the control of any member of the Group; or

      (c)   any contamination of the Properties on or before the Completion Date
            with any Hazardous Substances or substance regulated by Philippine
            Environmental Law or any contamination of any other properties
            previously used by any member of the Group or under the past
            ownership, occupation or control of any member of the Group where
            such contamination is proven to have occurred while such former
            properties were in the ownership or under the control of any member
            of the Group; or

      (d)   all Remedial Action resulting from or required in relation to any of
            the matters referred to in Clauses 7.1(a) to 7.1(d) inclusive.

7.2   The Vendors shall, for a period of three years from the Completion Date,
      give such assistance and provide such information to the Purchaser and the
      relevant member of the Group as the Purchaser shall reasonably request
      from time to time to enable the Purchaser or any member of the Group to
      take Remedial Action or investigate the history of any matter giving rise
      to any claim for indemnity hereunder or to make returns to and provide
      information as required by any agency or statutory or Government Authority
      having responsibility for any aspect of the Environment or Environmental
      Law.

7.3   The liability of the Vendors under this Clause 7 shall cease after three
      years from the Completion Date except in respect of matters which have
      been the subject of a bona fide written claim made within the said period
      by the Purchaser to the Vendors unless the claim in question has arisen by
      reason of fraud, wilful concealment, dishonesty or deliberate
      non-disclosure on the part of any of the Vendors prior to the Completion
      Date in which event the time period within which such a claim or claims
      may be brought shall be extended to ten years from the Completion Date.

8.    PRE-COMPLETION OBLIGATIONS

8.1   The Vendors shall procure (subject to any express instructions from the
      Purchaser) that from the date of this Agreement until Completion:

      (a)   the business of the Group is operated until Completion in the same
            manner as it was operated hereto, in a prudent manner consistent
            with past practices, and in the usual and ordinary course, and the
            Vendors shall use their best efforts to preserve the goodwill of
            suppliers, customers, creditors and others having business
            relationships with the Group, and shall safeguard and preserve the
            confidentiality of all books, records and information relating to
            the Group in a prudent manner consistent with past practices;

      (b)   the Group's products are sold in regular quantities consistent with
            past prudent trade practices and to inform the Purchaser of the
            sales (both value and volume) of the Group on a weekly basis;

                                       19
<PAGE>

      (c)   the fixed assets of the Group are maintained in good condition,
            repair and working order, normal wear and tear excepted;

      (d)   the Vendors shall have in effect and maintain at all times all
            insurance now in force relating to the Group and the business and
            assets of the Group;

      (e)   the Vendors shall use their best efforts to preserve and keep the
            business organization of the Group intact, to keep available the
            services of the present officers and employees of the Company;

      (f)   the Vendors shall allow the Purchaser, its representatives,
            attorneys and accountants, to the extent necessary to determine the
            operations of the Group, to have reasonable access to and copies of
            the records and files, audits and properties of the Group relating
            to the Group, the business and assets of the Group, as well as all
            information relating to taxes, commitments, contracts, titles and
            financial conditions of, or otherwise pertaining to, the Group, by
            way of requests made through the Purchaser, the Purchaser's
            authorized representatives, the Company's officers or key employees,
            or the Purchaser's legal counsel. The Vendors agree to cause the
            Group's accountants to cooperate with the Purchaser and its
            accountants in making available all financial information concerning
            the Group as requested, and the Purchaser and its accountants shall
            have the right to examine all working papers pertaining to
            examinations of the Group relating to the Group and its business and
            assets, provided that such examinations shall not cause disruption
            to the Group and its business and work force, and in any event,
            shall be undertaken with reasonable prior notice and during normal
            business hours of the Group;

      (g)   the Vendors shall maintain and/or obtain all government
            authorizations and contractual and leasehold consents and permits
            necessary to enable the consummation of all transactions
            contemplated hereby or the continuation of the business of the
            Group;

      (h)   the Vendors shall pay when due all national, local and other taxes
            of the Group;

      (i)   the Vendors shall provide the Purchaser with (i) copies of any
            financial statements prepared by the Group in the course of its
            business, and (ii) cumulative and monthly management reports of the
            Group's business (including statements of revenues and expenses),
            promptly after they become available; and

      (j)   the Vendors shall notify the Purchaser immediately in the event of
            any damage to or destruction of any of the material assets of the
            Group;

8.2   The Vendors shall procure that, from the date of this Agreement until
      Completion, no member of the Group shall, without the prior written
      consent of the Purchaser:

                                       20
<PAGE>

      (a)   enter into or vary any contract or assume any liability which is
            outside the ordinary or proper course of its business or which is
            long term, unusual or onerous;

      (b)   enter into any capital commitment in a sum in excess of US$50,000 or
            its equivalent in local currency (whether by way of purchase, lease,
            hire purchase or otherwise);

      (c)   make any change in the nature, scope or organisation of its business
            or dispose of the whole of its undertaking or property or a
            substantial part thereof;

      (d)   acquire or form any subsidiary or acquire any shares in any company
            or acquire the whole or any substantial part of the undertaking
            assets or business of any other company or any firm or person or
            enter into any joint venture or partnership with any other person;

      (e)   make any loans or grant any credit (other than credit given in the
            normal course of trading and advances made to employees against
            expenses incurred by them on its behalf);

      (f)   borrow any money (except borrowings from its bankers not exceeding
            US$50,000 or its equivalent in local currency) or make any payments
            out of or drawings on its bank accounts (except routine payments in
            the ordinary course of business);

      (g)   enter into any guarantee, indemnity or surety or grant any security
            over any of its assets or revenues;

      (h)   employ or engage, or make any offer of employment or engagement to,
            any employee or consultant earning in excess of US$5,000 (or its
            equivalent in local currency) per month, or make any changes
            (whether immediate, conditional or prospective) in the terms of
            employment (including, without limitation, in the amount or basis of
            the emoluments or benefits) of any of its employees or in any
            arrangements with its consultants;

      (i)   enter into any agreement, arrangement or understanding with any
            trade union, works council, staff association or other employee
            representative body in respect of any of the employees or directors
            of any member of the Group;

      (j)   acquire or dispose of or grant any option or right of pre-emption in
            respect of any material asset or any interest nor give nor receive
            any service otherwise than at market value, or enter into, issue, or
            grant any agreements, arrangements, warrants, calls, options,
            convertible rights or other rights (vested or contingent) to acquire
            any capital stock of the Group;

      (k)   acquire or dispose of any freehold or leasehold property or grant
            any lease or third party right in respect of any of the Properties
            or (subject to Clause 4.1(h) above) negotiate or agree to any review
            of rent in respect of any lease of any of the Properties;

                                       21
<PAGE>

      (l)   enter into any leasing, hire purchase agreement or any agreement or
            arrangement for payment on deferred terms;

      (m)   grant or enter into any licence, franchise or other agreement or
            arrangement concerning any part of its name, trading names or
            know-how;

      (n)   declare, make or pay any dividend or distribution on account of any
            of the Sale Shares or redeem, purchase or otherwise acquire any of
            the Sale Shares, or issue, sell or dispose of any option, warrant or
            right to acquire any shares of capital stock of the Group;

      (o)   incur or pay any management charges;

      (p)   permit any of its insurances to lapse or do anything which would
            make any policy of insurance void or voidable;

      (q)   make any payments to any of the Vendors or parties related to, or
            associated with, the Vendors.

      (r)   apply for, surrender or agree any variations to any Environmental
            Licences;

      (s)   make any change in the accounting practices or procedures governing
            any member of the Group;

      (t)   amend the Articles of Incorporation or By-Laws (or other
            constitutive documents) of any member of the Group;

      (u)   initiate or enter into or cause the Group's officers, directors,
            employees, agents and affiliates to initiate or enter into, any
            negotiations or solicit or discuss or encourage (and including by
            way of furnishing non-public information) any offer or proposal
            regarding the sale, direct or indirect, of any of the Sale Shares,
            the sale, direct or indirect, of any of the assets of any member of
            the Group (other than inventory in the ordinary course of business),
            the issuance of any capital stock of any member of the Group or any
            options, warrants, or rights to acquire capital stock of any member
            of the Group, or any merger, consolidation or similar transaction
            involving the Sale Shares or any of the assets of any member of the
            Group with any party other than the Purchaser or an affiliate of the
            Purchaser. The Vendors shall promptly notify the Purchaser of any
            such proposal or offer, or any inquiry or contact with any person
            with respect thereto, and terms thereof; or

      (v)   agree, conditionally or otherwise, to do any of the foregoing.

8.3   As from the date of this Agreement, the Vendors shall give and shall
      procure that the Purchaser and/or any persons authorised by it will be
      given such access to the premises and all books, title deeds, records and
      accounts of the BVI Companies, the Company and the Investee Companies as
      the Purchaser may reasonably request and be permitted to take copies of
      any such books, deeds, records and accounts and that

                                       22
<PAGE>

      the directors and employees of the BVI Companies, the Company and the
      Investee Companies shall be instructed to give promptly all such
      information and explanations to any such persons as aforesaid as may be
      requested by it or them.

8.4   The Purchaser shall procure (subject to any express instructions from the
      Vendors) from the date of this Agreement until Completion:

      (a)   that the business of the Purchaser is operated until Completion in
            the same manner as it was operated hereto, in a prudent manner
            consistent with past practices, and in the usual and ordinary
            course, and the Purchaser shall use its best efforts to preserve the
            goodwill of suppliers, customers, creditors and others having
            business relationships with the Purchaser, and shall safeguard and
            preserve the confidentiality of all books, records and information
            relating to the Purchaser in a prudent manner consistent with past
            practices;

      (b)   the maintenance of all government authorizations and contractual and
            leasehold consents and permits necessary to enable the consummation
            of all transactions contemplated hereby or the continuation of the
            business of the Purchaser and Viko Technology, Inc.;

      (c)   the payment when due of all national, local and other taxes of the
            Purchaser or Viko Technology, Inc.;

      (d)   the notification to the Vendors immediately in the event of any
            damage to or destruction of any of the material assets of the
            Purchaser or Viko Technology, Inc.; and

      (e)   the notification to the Vendors immediately of any matter, event or
            circumstance (including any omission to act) which may arise or
            become known to it which has, or is likely to have, an adverse
            effect on the financial position or prospects of the Purchaser.

8.5   The Purchaser shall procure that, from the date of this Agreement until
      Completion, the Purchaser shall not, without the prior written consent of
      the Vendors:

      (a)   make any change in the nature, scope or organisation of its business
            or dispose of the whole of its undertaking or property or a
            substantial part thereof;

      (b)   acquire or form any subsidiary or acquire any shares in any company
            or acquire the whole or any substantial part of the undertaking
            assets or business of any other company or any firm or person or
            enter into any joint venture or partnership with any other person;

      (c)   acquire or dispose of or grant any option or right of pre-emption in
            respect of any material asset or any interest nor give nor receive
            any service otherwise than at market value, or enter into, issue, or
            grant any agreements, arrangements, warrants, calls, options,
            convertible rights or other rights (vested or contingent) to acquire
            any capital stock of the Purchaser or Viko Technology, Inc.;

                                       23
<PAGE>

      (d)   declare, make or pay any dividend or distribution or redeem,
            purchase or issue, sell or dispose of any option, warrant or right
            to acquire any shares of capital stock of the Purchaser or Viko
            Technology, Inc.;

      (e)   agree, conditionally or otherwise, to do any of the foregoing.

9.    CONFIDENTIALITY

9.1   Each of the parties to this Agreement undertakes with the other parties
      that it will not (save as required by law or by any securities exchange or
      any supervisory or regulatory body to whose rules any party to this
      Agreement is subject) make any announcement in connection with this
      Agreement unless the other parties shall have given their consent to such
      announcement (which consent may not be unreasonably withheld or delayed
      and may be given either generally or in a specific case or cases and may
      be subject to conditions). For the avoidance of doubt, it shall be
      reasonable for a party to withhold its consent if Completion has not
      occurred.

9.2   Each party to this Agreement undertakes with the other parties that it
      shall treat as strictly confidential all information received or obtained
      by it or its employees, agents or advisers as a result of entering into or
      performing this Agreement including information relating to the provisions
      of this Agreement, the negotiations leading up to this Agreement, the
      subject matter of this Agreement or the business or affairs of the
      Vendors, the Group or the Purchaser, and subject to the provisions of
      Clause 9.3, that it will not at any time hereafter make use of or disclose
      or divulge to any person any such information and shall use its best
      endeavours to prevent the publication or disclosure of any such
      information.

9.3   The restrictions contained in Clauses 9.1 and 9.2 shall not apply so as to
      prevent any party from making any disclosure required by law or by any
      securities exchange or supervisory or regulatory or Government Authority
      pursuant to rules to which the relevant party is subject or from making
      any disclosure to any professional adviser for the purposes of obtaining
      advice (provided always that the provisions of this Clause 9 shall apply
      to and such disclosing party shall procure that they apply to and are
      observed in relation to, the use or disclosure by such professional
      adviser of the information provided to him) nor shall the restrictions
      apply in respect of any information which comes into the public domain
      otherwise than by a breach of this Clause 9 by any party.

10.   COSTS

10.1  Subject to Clause 10.2 below, the parties agree that the Company shall pay
      for the costs of the Vendors in relation to the preparation and
      negotiation of this Agreement and the sale and purchase hereby agreed to
      be made subject to a maximum of US$350,000, provided that the parties are
      able to agree on an estimated list of costs to be borne by the Company
      pursuant to this Clause 10.1 prior to Completion.

10.2  The parties agree that the costs relating to the conduct of the legal and
      financial due diligence on the BVI Companies and AML Trading Limited by
      the Purchaser

                                       24
<PAGE>

      (including without limitation the costs of a legal opinion to be issued by
      the Purchaser's British Virgin Islands counsel on the BVI Companies and
      AML Trading Limited), shall be borne by the Vendors subject to a maximum
      of US$18,000.

11.   GENERAL

11.1  This Agreement shall be binding upon and enure for the benefit of the
      estates, personal representatives or successors of the parties.

11.2  This Agreement (together with any documents referred to herein or executed
      contemporaneously by the parties in connection herewith) constitutes the
      whole agreement between the parties hereto and supersedes any previous
      agreements or arrangements between them relating to the subject matter
      hereof; it is expressly declared that no variations hereof shall be
      effective unless made in writing signed by duly authorised representatives
      of the parties.

11.3  All of the provisions of this Agreement shall remain in full force and
      effect notwithstanding Completion (except insofar as they set out
      obligations which have been fully performed at Completion).

11.4  If any provision or part of a provision of this Agreement shall be, or be
      found by any authority or court of competent jurisdiction to be, invalid
      or unenforceable, such invalidity or unenforceability shall not affect the
      other provisions or parts of such provisions of this Agreement, all of
      which shall remain in full force and effect.

11.5  Any right of rescission conferred upon the Purchaser hereby shall be in
      addition to and without prejudice to all other rights and remedies
      available to it (and, without prejudice to the generality of the
      foregoing, shall not extinguish any right to damages to which the
      Purchaser may be entitled in respect of the breach of this Agreement) and
      no exercise or failure to exercise such a right of rescission shall
      constitute a waiver by the Purchaser of any such other right or remedy.

11.6  No failure of the Purchaser to exercise, and no delay or forbearance in
      exercising, any right or remedy in respect of any provision of this
      Agreement shall operate as a waiver of such right or remedy.

11.7  Upon and after Completion, the Vendors shall do and execute or procure to
      be done and executed all such further acts, deeds, documents and things as
      may be necessary to give effect to the terms of this Agreement and to
      place control of the BVI Companies, the Company and the Investee Companies
      in the hands of the Purchaser (including without limitation, co-operating
      with the Purchaser and/or the Company in making all relevant filings or
      notifications required by any authority to the sale of the Sale Shares)
      and pending the doing of such acts, deeds, documents and things the
      Vendors shall as from Completion hold the legal estate in the Sale Shares
      in trust for the Purchaser.

11.8  At the request of the Purchaser, the Vendors shall execute under seal a
      power of attorney in favour of the Purchaser or such person as may be
      nominated by the

                                       25
<PAGE>

      Purchaser generally in respect of the Sale Shares and in particular to
      enable the Purchaser (or its nominees) to attend and vote at general
      meetings of the Company.

11.9  This Agreement may be executed in one or more counterparts, and by the
      parties on separate counterparts, but shall not be effective until the
      signing of the last counterpart and each party has executed at least one
      counterpart and each such counterpart shall constitute an original of this
      Agreement but all the counterparts shall together constitute one and the
      same instrument. Each counterpart may be executed by the parties and
      transmitted by facsimile transmission and shall be as valid and effectual
      as if executed as an original.

11.10 The Singapore Contracts (Rights of Third Parties) Act 2001 (the "CRTP
      ACT") shall not apply to this Agreement and no person not party to this
      Agreement shall have or acquire any right to enforce any term of it
      pursuant to the CRTP Act. This Clause 11.10 shall not affect any right or
      remedy of any third party which exists or is available otherwise than by
      reason of the CRTP Act and shall prevail over any other provision of this
      Agreement which is inconsistent with it.

11.11 The Vendors may assign their rights under this Agreement to the nominees
      that will hold the Consideration Shares provided that they promptly serve
      notice on the Purchaser to this effect. Otherwise, none of the parties may
      assign their rights or transfer their obligations under this Agreement
      without the prior written consent of the other parties (such consent not
      to be unreasonably withheld or delayed).

12.   NOTICES

12.1  Save as otherwise provided in this Agreement any notice, demand or other
      communication to be served under this Agreement shall be in writing in the
      English language and shall be served upon any party hereto only by posting
      by registered mail (if to an address in the same country) or air mail (if
      to an address in a different country) or delivering the same by hand or by
      courier, to its address given or referred to in this clause or sending the
      same by facsimile transmission to the number given in this clause for the
      addressee or at such other address or number as it may from time to time
      notify in writing to the other parties hereto.

12.2  A notice, demand or other communication served by registered mail shall be
      deemed duly served on an address in the same country 48 hours
      (disregarding days which are not business days) after posting, a notice,
      demand or other communication served by air mail shall be deemed duly
      served on an addressee in a different country five business days after
      posting and a notice, demand or other communication sent by facsimile
      transmission shall be deemed to have been served at the time of
      transmission (save that if the transmission occurs after 6.00 p.m. the
      notice, demand or other communication shall be deemed to have been served
      at 8.30 a.m. on the next business day following transmission) and in
      proving service of the same it will be sufficient to prove, in the case of
      a letter, that such letter was left at or delivered to the correct address
      of the party to be served as provided in this Agreement or, in the case of
      properly stamped or franked registered mail or air mail, addressed to the
      address of the party to be served given in this Clause and placed in the
      post and, in the case of facsimile transmission, that such facsimile was
      duly transmitted to the number of the

                                       26
<PAGE>

      party to be served given in this Clause and an electronic acknowledgement
      was received.

12.3  All notices, demands or other communications given under this Agreement,
      shall be given to the following addresses:

            If to the Vendors:               collectively care of Renato
                                       Marfori Tanseco at his address and/or
                                       facsimile number stated in Schedule 1;

            If to the Purchaser:             55 Ayer Rajah Crescent, #06-05,
                                       Singapore 139949

                                       Facsimile: (65) 6779 0053
                                       Attention: Inderjit Singh / Kong Kah Chin

            If to the Company:               55 Ayer Rajah Crescent, #06-05,
                                       Singapore 139949

                                       Facsimile: (65) 6779 0053
                                       Attention: Inderjit Singh / Kong Kah Chin

            If to the BVI Companies:         55 Ayer Rajah Crescent, #06-05,
                                       Singapore 139949

                                       Facsimile: (65) 6779 0053
                                       Attention: Inderjit Singh / Kong Kah Chin

12.4  For the purposes of this Clause "BUSINESS DAY" means a day (other than a
      Saturday or a Sunday) on which banks are generally open for business in
      Singapore.

13.   GOVERNING LAW AND DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of
Singapore. Any dispute arising out of or in connection with this Agreement or
the Promissory Note, including any question regarding their existence, validity
or termination, shall be referred to and finally resolved by arbitration in
Singapore in accordance with the Arbitration Rules of the Singapore
International Arbitration Centre ("SIAC RULES") for the time being in force
which rules are deemed to be incorporated by reference into this clause.

                                   SCHEDULE 1

                             DETAILS OF THE VENDORS

                         FINETECH INTERNATIONAL LIMITED

                                       27
<PAGE>

<TABLE>
<CAPTION>
                COLUMN 1                                   COLUMN 2
                                                 NUMBER OF SALE SHARES (OF PAR
 NAME AND ADDRESS DETAILS OF THE VENDORS   VALUE US$1.00 EACH) IN RELATION TO FINETECH
   OF FINETECH INTERNATIONAL LIMITED                 INTERNATIONAL LIMITED
<S>                                        <C>
Renato Marfori Tanseco                                    1,593,760
Address: 1453 Calumpang Street,
         Dasmarinas Village, Makati City,
Fax: (632) 819 5091  Philippines

Antonio Boglosa Villaruel                                        10

Alberto Quisumbing Villanueva                                    10

Mila Santos Tanseco                                         637,500

TOTAL                                                     2,231,280
</TABLE>

                                GOLD DAWN LIMITED

<TABLE>
<CAPTION>
            COLUMN 1                                      COLUMN 2
                                                   NUMBER OF SALE SHARES (OF PAR
NAME AND ADDRESS DETAILS OF THE VENDORS    VALUE US$1.00 EACH)IN RELATION TO GOLD DAWN
        OF GOLD DAWN LIMITED                               LIMITED
<S>                                        <C>
Renato Marfori Tanseco                                           10

Antonio Boglosa Villaruel                                 1,593,760

Alberto Quisumbing Villanueva                                    10

Orlando M. Sagum                                              1,250

TOTAL                                                     1,595,030
</TABLE>

                              GLOBAL CROWN LIMITED

                                       28
<PAGE>

<TABLE>
<CAPTION>
               COLUMN 1                                  COLUMN 2
                                           NUMBER OF SALE SHARES (OF PAR VALUE
 NAME AND ADDRESS DETAILS OF THE VENDORS   US$1.00 EACH)IN RELATION TO GLOBAL
         OF GLOBAL CROWN LIMITED                     CROWN LIMITED
<S>                                        <C>
AML Trading Limited                                        100

TOTAL                                                      100
</TABLE>

                              MAYON CAPITAL LIMITED

<TABLE>
<CAPTION>
             COLUMN 1                                     COLUMN 2
                                           NUMBER OF SALE SHARES (OF PAR VALUE
NAME AND ADDRESS DETAILS OF THE VENDORS    US$1.00 EACH) IN RELATION TO MAYON
        OF MAYON CAPITAL LIMITED                      CAPITAL LIMITED

<S>                                        <C>
Renato Marfori Tanseco                                         10

Antonio Boglosa Villaruel                                      10

Alberto Quisumbing Villanueva                              17,760

Robert Thomas L. Tom                                        5,000

Benjamin Jr Del Rosario                                     2,500

Luisito Basister Manalo                                     2,000

Vernie Basco Flavier                                        1,250

TOTAL                                                      28,530
</TABLE>

                                       29
<PAGE>

                                   SCHEDULE 2

               BRIEF DETAILS OF THE COMPANY AND THE BVI COMPANIES

                                   THE COMPANY

1.    Registered number: ASO96-002117

2.    Address of registered office: Light Industry and Science Park of the
      Philippines, Cabuyao, Laguna, Philippines

3.    Date and place of incorporation: 26 February 1996 / The Philippines

4.    Authorised capital stock: PHP1,250,000,000

5.    Issued stock capital: PHP632,019,564

6.    Directors: Renato Marfori Tanseco, Antonio Boglosa Villaruel, Jose Antonio
      A. Lichauco, Rogelio C. Nicandro, Gerald E. Homstad, Godofredo C.
      Uy-Tioco, Vincent O. Abella

7.    Secretary: Odette Rachelle C. Padre

8.    Financial year end: 31 December

9.    Current auditors: Joaquin Cunanan & Co.

                         FINETECH INTERNATIONAL LIMITED

1.    International Business Company number: 317784

2.    Address of registered office: Beaufort House, Tropic Isle Building, PO Box
      438, Road Town, Tortola, British Virgin Islands

3.    Date and place of incorporation: 23 March 1999 / British Virgin Islands

4.    Registered agent: JAI Services Limited of Beaufort House, Tropic Isle
      Building, PO Box 438, Road Town, Tortola, British Virgin Islands

5.    Authorised capital: US$2,750,000

6.    Issued capital: US$2,231,280

7.    Directors: Renato Marfori Tanseco, Mila Santos Tanseco

8.    Secretary: Shouson Limited

                                       30
<PAGE>

                              GLOBAL CROWN LIMITED

1.    International Business Company number: 177098

2.    Address of registered office: Beaufort House, Tropic Isle Building, PO Box
      438, Road Town, Tortola, British Virgin Islands

3.    Date and place of incorporation: 27 February 1996 / British Virgin Islands

4.    Registered agent: JAI Services Limited of Beaufort House, Tropic Isle
      Building, PO Box 438, Road Town, Tortola, British Virgin Islands

5.    Authorised capital: US$3,000,000

6.    Issued capital: US$100

7.    Directors: Renato Marfori Tanseco, Mila Santos Tanseco

8.    Secretary: Shouson Limited

                              MAYON CAPITAL LIMITED

1.    International Business Company number: 297541

2.    Address of registered office: Beaufort House, Tropic Isle Building, PO Box
      438, Road Town, Tortola, British Virgin Islands

3.    Date and place of incorporation: 15 October 1998 / British Virgin Islands

4.    Registered agent: JAI Services Limited of Beaufort House, Tropic Isle
      Building, PO Box 438, Road Town, Tortola, British Virgin Islands

5.    Authorised capital: US$500,000

6.    Issued capital: US$28,530

7.    Directors: Renato Marfori Tanseco, Antonio Boglosa Villaruel, Alberto
      Quisumbing Villanueva

8.    Secretary: Shouson Limited

                                       31
<PAGE>

                                GOLD DAWN LIMITED

1.    International Business Company number: 334702

2.    Address of registered office: Beaufort House, Tropic Isle Building, PO Box
      438, Road Town, Tortola, British Virgin Islands

3.    Date and place of incorporation: 19 July 1999 / British Virgin Islands

4.    Registered agent: JAI Services Limited of Beaufort House, Tropic Isle
      Building, PO Box 438, Road Town, Tortola, British Virgin Islands

5.    Authorised capital: US$2,000,000

6.    Issued capital: US$1,595,030

7.    Directors: Antonio Boglosa Villaruel, Alberto Quisumbing Villanueva

8.    Secretary: Shouson Limited

                                       32
<PAGE>

                                   SCHEDULE 3

            SHAREHOLDING OF THE PURCHASER (REFERRED TO IN CLAUSE 3.2)

The shareholding structure as referred to in Clause 3.2 will be as follows:

<TABLE>
<CAPTION>
                                   NUMBER OF A  NUMBER OF A    NUMBER OF   NUMBER OF
                                   PREFERENCE    ORDINARY      ORDINARY     OPTIONS
           PARTY                   SHARES HELD  SHARES HELD   SHARES HELD     HELD
<C>                                <C>          <C>           <C>          <C>
3i Group plc and 3i Asia Pacific
Technology LP collectively          2,626,530    6,128,570       750,000           -

EDB Investments Pte Ltd             1,969,899    4,596,427             -           -

The Purchaser's management                  -            -     4,928,570   1,200,653

Koh Boon Hwee                                            -       125,000           -

The Purchaser's Independent
Director                                    -            -             -      92,358

AML Trading Limited                         -            -     2,662,304           -

Nominees of the Vendors                     -            -     1,780,195     454,369

TOTAL                               4,596,429   10,724,997    10,246,069   1,747,380
</TABLE>

Note: For the avoidance of doubt, the Purchaser also has two issued and paid up
shares of par value S$1.00 (Singapore dollars) each in its capital not reflected
in the table in this Schedule 3.

                                       33
<PAGE>

                                   SCHEDULE 4

                             THE INVESTEE COMPANIES

ATEC-KMI PHILIPPINES, INC.
SEC Registration No. A1997-2547
Principal office: Special Export Processing Zone, Light and
Industry Science Park, Cabuyao, Laguna, Philippines.

<TABLE>
<CAPTION>
                                                          Percentage of
                                        No. of Shares   Total Issued and
       Name               Citizenship    Subscribed      Paid Up Capital
<S>                       <C>           <C>             <C>
Automated Technology
(Phil.) Inc. ("ATEC")      Filipino        194,997              50%

Mayon Capital Limited      Filipino        194,998              50%

Renato M.arfori
Tanseco
(in trust for ATEC)        Filipino              1               -

Antonio Boglosa
Villaruel
(in trust for ATEC)        Filipino              1               -

Alberto Quisumbing
Villanueva
(in trust for ATEC)        Filipino              1               -

Jose Antonio A.
Lichauco
(in trust for Mayon
Capital Ltd.)              Filipino              1               -

Rogelio Nicandro
(in trust for Mayon
Capital Ltd.)              Filipino              1               -

TOTAL                                      390,000             100%
</TABLE>

                                       34
<PAGE>

BLUE SKY INTEGRATED DESIGNS, INC.
SEC Registration No. A199918679
Principal office: Light Industry and Science Park of the Philippines, Cabuyao,
Laguna, Philippines

<TABLE>
<CAPTION>
                                        No. of Shares        Amount              Amount
         Name             Citizenship     Subscribed       Subscribed             Paid
<S>                       <C>           <C>             <C>                  <C>
Automated Technology
(Phil.) Inc.               Filipino        124,995      PHP   12,499,500     PHP   3,124,875

Renato Marfori Tanseco     Filipino              1                   100                  25

Antonio Boglosa            Filipino              1                   100                  25
Villaruel

Alberto Quisumbing         Filipino              1                   100                  25
Villanueva

Antonio F. Pison, Jr.      Filipino              1                   100                  25

Arthur R. Tan              American              1                   100                  25

TOTAL                                      125,000      PHP12,500,000.00     PHP3,125,000.00
</TABLE>

                                       35
<PAGE>

                                   SCHEDULE 5

                                 THE PROPERTIES

                          PART I - FREEHOLD PROPERTIES

DESCRIPTION OF PROPERTY                           OWNER

None

                         PART II - LEASEHOLD PROPERTIES

DESCRIPTION OF PROPERTY                           OWNER

1.    Two-storey steel and concrete               Stancrest Realty Corporation
      building shell built on land covered
      by Torrens Certificate of Title
      No. T-356454 situated in the
      Light Industry & Science Park
      of the Philippines

2.    Annex Building situated on parcels of       Stancrest Realty Corporation
      and covered by Torrens Certificates
      of Title No. T-356454 and T-383008
      and an Accretion Lot to be titled and
      acquired by Stancrest Realty Corporation

                                       36
<PAGE>

                                   SCHEDULE 6

                              CONTINUING EMPLOYEES

1.    Antonio Boglosa Villaruel

2.    Alberto Quisumbing Villanueva

3.    Francisco D. del Val

4.    Jose Antonio A. Lichauco

5.    Igmedio C. Cortes

6.    Benjamin B. del Rosario

7.    Robert Thomas L. Tom

                                       37
<PAGE>

                                   SCHEDULE 7

                            WARRANTIES OF THE VENDORS

(a)   Each of the Vendors jointly and severally represents, warrants and
      undertakes to and with the Purchaser that each of the statements set out
      in Parts One to Three inclusive of this Schedule 7 will at Completion be
      true and accurate.

(b)   The Warranties are given subject to matters fully, fairly and specifically
      disclosed in the Disclosure Letter but no other information relating to
      the BVI Companies, the Company or the Investee Companies of which the
      Purchaser has knowledge (actual or constructive) and no investigation by
      or on behalf of the Purchaser shall prejudice any claim made by the
      Purchaser under the Warranties or operate to reduce any amount
      recoverable, and liability in respect thereof shall not be confined to
      breaches discovered before Completion. No letter, document or other
      communication shall be deemed to constitute a disclosure for the purposes
      of this Agreement unless the same is accepted as such by the Purchaser and
      is expressly referred to in the Disclosure Letter.

(c)   The Vendors acknowledge that the Purchaser has entered into this Agreement
      in reliance upon the Warranties.

(d)   Without restricting the rights of the Purchaser or otherwise affecting the
      ability of the Purchaser to claim damages on any other basis available to
      it (save for a claim or claims arising in relation to the Warranties by
      reason of fraud, wilful concealment, dishonesty or deliberate
      non-disclosure on the part of any of the Vendors or on the part of any
      officer or representative of any Vendor or any member of the Group prior
      to the Completion Date, in which event there shall be no limit on the
      amount recoverable by the Purchaser from the Vendors in respect of such
      claim or claims and the time period within which such a claim or claims
      may be brought shall be extended to ten years from the Completion Date),
      the Vendors hereby undertake, for so long as the Vendors' liability under
      the Warranties survive pursuant to Clause (l) below of this Schedule 7, to
      indemnify and keep indemnified the Purchaser (for itself and as trustees
      for the BVI Companies, the Company and the Investee Companies) and their
      officers, directors, employees, agents and shareholders (collectively, the
      "INDEMNIFIED PURCHASERS") against:

      (i)   any loss or liability suffered by any of the Indemnified Purchasers
            as a result of, arising from or in connection with any breach of any
            of the Warranties including, but not limited to, any dimunition in
            the value of the Sale Shares and any payment made or required to be
            made by the Indemnified Purchasers and any costs, expenses, fines,
            penalties and Taxes incurred as a result of such breach. For the
            purposes of this Clause (d)(i), any dimunition in value of the Sale
            Shares will be determined by reference to the fair market value of
            the Sale Shares. The fair market value will be determined by an
            independent third party valuer to be appointed by agreement by the
            Vendors and the Purchaser. In the event that there is any
            disagreement on the valuer, either the Vendors or the Purchaser may
            request the President of the Institute of Certified Public

                                       38
<PAGE>

            Accountants of Singapore to decide on the valuer. The Vendors and
            the Purchaser shall engage the valuer on his standard terms and
            conditions;

      (ii)  all costs and expenses properly and reasonably incurred by any of
            the Indemnified Purchasers in connection with or as a result of such
            breach and any costs (including legal costs on a solicitor and own
            client basis), expenses or other liabilities which any of them may
            incur either before or after the commencement or any action in
            connection with (1) any legal proceedings in which any of the
            Indemnified Purchasers claims that any of the Warranties has been
            broken or is untrue and in which judgement is given for any of the
            Indemnified Purchasers; or (2) the enforcement of any settlement of,
            or judgement in respect of, such claim; and

      (iii) (notwithstanding Clause (b) in this Schedule 7 and anything
            contained in the Disclosure Letter) any loss or liability suffered
            by any of the Indemnified Purchasers arising, directly or
            indirectly, from and in connection with:

            (1)   any actions or claims brought by the relevant authorities in
                  the relevant jurisdiction relating to any violation of
                  applicable laws, rules and regulations by any member of the
                  Group prior to Completion;

            (2)   without limiting the generality of Clause (d)(iii)(1) in this
                  Schedule 7, any failure by the Company or any of the Investee
                  Companies to comply with all applicable laws, rules and
                  regulations in the Philippines or to hold all relevant
                  licences, permits and registrations (including any default in
                  renewal of such licences, permits and registrations) which are
                  required for their operations prior to Completion;

            (3)   any actions or claims occurring or made prior to the
                  Completion Date by any employee, agent or consultant of the
                  Company or any of the Investee Companies for loss, damage or
                  injury sustained in the course of work and for which the
                  Company or the relevant Investee Company is not adequately
                  insured against;

            (4)   any Tax liability (including without limitation liability for
                  withholding tax, real property tax or income tax) imposed on
                  any member of the Group by any Tax authority referrable to, or
                  in respect of, the period up to Completion arising from or due
                  to the Company or the relevant Investee Company's default,
                  omission or deficiency in meeting Tax payments or obligations
                  (provided always that the Vendors shall have the right to
                  request an administrative or judicial review of such Tax
                  liability and to exhaust all applicable appeal procedures,
                  with all costs arising from such review and appeals (including
                  without limitation all legal costs) to be borne by such
                  Vendors). For this purpose, the Purchaser shall procure that
                  within five business days of the receipt of an assessment from
                  any Tax authority, it shall notify the Vendors who shall have
                  a period of five business days to advise the Company that it
                  wishes to challenge the assessment and if the Vendors choose
                  to do so,

                                       39
<PAGE>

                  the Vendors shall have a further ten business days in which to
                  lodge a protest on behalf of the Company and then to pursue
                  such action up to its final adjudication or judgment;

            (5)   any liability imposed on any member of the Group arising from
                  any court order or judgment or any relevant request or demand
                  by any Government Authority relating to or arising from any
                  applicable Environmental Law (other than Philippine
                  Environmental Law) where the event giving rise to the
                  liability occurred before the Completion Date;

            (6)   any actions or claims in connection with the following
                  specific due diligence items in respect of all liabilities
                  arising prior to Completion or attributable to the period up
                  to Completion:

                        (A) any failure of the Company to meet projected
                        production and sales commitments under its Registration
                        Agreement with the Philippine Economic Zone Authority
                        which may affect the Company's entitlement to incentives
                        as an Ecozone Export Enterprise;

                        (B) any failure to comply fully with the requirements of
                        the Philippine Occupational Safety and Health Standards
                        in relation to the provision of (i) occupational health
                        physicians, (ii) a full time dentist, (iii) full time
                        occupational health nurses, (iv) full time first aiders
                        and (v) emergency medical and dental clinic;

                        (C) any failure to comply fully with the requirements
                        under the Social Security Law of 1997, National Health
                        Insurance Act of 1995 and Pag-IBIG Fund law in relation
                        to its employees;

                              (D) any loss or damage to consigned equipment,
                        furniture and fixtures in the Company's control and/or
                        possession from its customers which are necessary for
                        the Company's business;

                              (E) any liability arising out of the shareholders'
                        agreement entered into with Korea Microsystems, Inc on 3
                        December 1996 in relation to the joint venture in
                        ATEC-KMI Philippines, Inc (an Investee Company); and

                              (F) any liability arising out of any stock option
                        arrangement in existence prior to Completion available
                        to officers and/or employees of the Company.

(e)   Each of the Warranties shall be separate and independent and save as
      expressly provided to the contrary, shall not be limited by reference to
      or inference from any

                                       40
<PAGE>

      other Warranty or any other term of this Agreement, nor by anything in the
      Disclosure Letter which is not expressly referenced to the Warranty
      concerned.

(f)   Where any statement in the Warranties or any confirmation or certificate
      given by any of the Vendors hereunder or pursuant hereto is qualified by
      the expression "so far as the Vendors are aware" or "to the best of the
      Vendors' knowledge and belief" or any similar expression, that statement
      shall be deemed to include an additional statement that it has been made
      after due and careful enquiry.

(g)   Each of the Vendors hereby agrees with the Purchaser (for itself and as
      trustee for each of the BVI Companies, the Company and each of the
      Investee Companies) to waive any rights which it may have in respect of
      any misrepresentation or inaccuracy in, or omission from, any information
      or advice supplied or given by the BVI Companies, the Company or its
      Investee Companies or their officers, employees or advisers in connection
      with the giving of the Warranties and the preparation of the Disclosure
      Letter.

(h)   The Vendors shall procure that (save only as may be necessary to give
      effect to this Agreement) neither they nor any member of the Group shall
      do, allow or procure any act or omission before Completion which would
      constitute a breach of any of the Warranties or which would make any of
      the Warranties inaccurate or misleading.

(i)   Each of the Vendors hereby agrees to disclose to the Purchaser in writing
      immediately upon becoming aware of the same, any matter, event or
      circumstance (including any omission to act) which may arise or become
      known to it after the date of this Agreement and before Completion which
      has, or is likely to have, an adverse effect on the financial position or
      prospects of any member of the Group.

(j)   The Vendors shall give to the Purchaser after Completion all such
      information and documentation relating to the Group as the Purchaser shall
      reasonably require to enable it to satisfy itself as to the accuracy and
      due observance of the Warranties.

(k)   The benefit of the Warranties may be assigned in whole or in part and
      without restriction by the person for the time being entitled thereto,
      provided that prior notification has been given by the Purchaser to the
      Vendors in writing of such intention to assign the benefit of the
      Warranties.

(l)   The liabilities of the Vendors under the Warranties:

      (i)   shall save in relation to:

            (1)   paragraphs 3.1 to 3.8 inclusive of Part One of Schedule 7
                  below (collectively, the "TAX WARRANTIES") and paragraphs 16.1
                  to 16.8 inclusive of Part Two of Schedule 7 below
                  (collectively, the "BVI TAX WARRANTIES"); and

            (2)   paragraphs 4.2, 4.3, 4.4 and 4.5 of Part One of Schedule 7,
                  and paragraphs 15.2, 15.3, 15.4 and 15.5 of Part Two of
                  Schedule 7 below,

                                       41
<PAGE>

                  cease after three years from the Completion Date except in
                  respect of matters which have been the subject of a bona fide
                  written claim made before such date by the Purchaser or the
                  Purchaser's Lawyers to the Vendors or the Vendors' Lawyers;

            (ii)  shall in relation to the Tax Warranties cease after three
                  years from the date of the filing of the relevant Tax return
                  by the Company to the applicable Tax authority for the Tax and
                  financial year ending 31 December 2002 and in relation to the
                  BVI Tax Warranties cease after six years from the Completion
                  Date, except in each case in respect of matters which have
                  been the subject of a bona fide written claim made before such
                  date by the Purchaser or the Purchaser's Lawyers to the
                  Vendors or the Vendors' Lawyers;

            (iii) shall be limited to the aggregate value of the amounts paid
                  under Clauses 3.1(b) and 3.1(c) of this Agreement. After
                  Completion Date and up to and including the second anniversary
                  of the Completion Date, the Vendors's liability in relation to
                  the Warranties (in respect of which a bona fide written claim
                  has been made before the second anniversary of the Completion
                  Date by the Purchaser or the Purchaser's Lawyers to the
                  Vendors or the Vendors' Lawyers) shall be limited to a maximum
                  aggregate amount of US$8,000,000. From the second anniversary
                  of the Completion Date onwards, the Vendors' liability in
                  relation to the Warranties shall be limited to a maximum
                  aggregate amount of US$5,000,000. In addition, the Vendors
                  shall not incur any liability until the aggregate amount of
                  all liabilities, exceeds US$100,000 (the "BASKET"), at which
                  point, the Vendors shall be liable for the complete amount of
                  all liabilities, including, without limitation US$100,000 of
                  the Basket,

            save (in all instances in Clauses l(i) to l(iii) above inclusive)
            for a claim or claims in relation to the Warranties arising by
            reason of fraud, wilful concealment, dishonesty or deliberate
            non-disclosure on the part of any of the Vendors or on the part of
            any officer or representative of any Vendor or any member of the
            Group prior to the Completion Date, in which event there shall be no
            limit on the amount recoverable by the Purchaser from the Vendors in
            respect of such claim or claims and the time period within which
            such a claim or claims may be brought shall be extended to ten years
            from the Completion Date.

      (m)   If any sum payable by the Vendors under or pursuant to this Schedule
            7 shall be subject to Tax (whether by way of deduction or
            withholding or direct assessment of the person entitled thereto)
            such payment shall be increased by such an amount as shall ensure
            that after deduction, withholding or payment of such Tax the
            recipient shall have received a net amount equal to the payment
            otherwise required hereby to be made.

                                    PART ONE

                            WARRANTIES REGARDING ATEC

                                       42
<PAGE>

IN PART ONE OF THIS SCHEDULE UNLESS THE CONTEXT OTHERWISE INDICATES EACH OF THE
WARRANTIES SHALL BE DEEMED TO BE REPEATED MUTATIS MUTANDIS IN RELATION TO EACH
COMPANY IN THE GROUP.

1.    THE ACCOUNTS

1.1   The Accounts have been prepared in accordance with the requirements of all
      relevant statutes and with good and generally accepted accountancy
      principles and practice consistently applied, are complete and accurate in
      all respects, show a true and fair view of the state of affairs of the
      Company and of its results and profits for the financial period ending on
      the Accounting Date, and disclose and make full provision or reserve for
      all liabilities (whether actual or contingent and whether quantified or
      disputed or otherwise).

1.2   All of the Company's book debts, whether shown in the Accounts or arising
      since the Accounting Date, are valid and enforceable, and have realised or
      will in aggregate realise the nominal amount thereof and, to the best of
      the Vendors' knowledge, will be collectible in full within 90 days of the
      Completion Date.

2.    MANAGEMENT ACCOUNTS

The Management Accounts have been prepared in accordance with the accounting
policies of the Company which are the same as those contained in the Accounts of
the Company save as set out in the Disclosure Letter and on a consistent basis
with the monthly management accounts of the Company and show a fair view of the
assets and liabilities and profits and losses of the Company as at and to 31
October 2002.

3.    TAX, RECORDS AND RETURNS

3.1   No event, act, transaction or omission has occurred or shall occur between
      the Accounting Date and Completion which could give rise to a claim under
      the terms of Clause (d)(iii)(4) in this Schedule 7.

3.2   The Company has duly filed all returns, computations, notices and
      information required to be made or provided by the Company for any Tax
      purpose and the same have been made or given within the requisite periods
      and on a proper basis and when made were true and accurate in all material
      respects and are up to date and none of them is or so far as the Vendors
      are aware, likely to be the subject of any dispute with any Tax authority.

3.3   The Company has paid, and has withheld, deducted and accounted to the
      relevant Tax authorities for, all Tax which it has become liable to pay,
      withhold, deduct or account for on or before the date hereof and, within
      the period of three years prior to the date hereof, neither the Company
      nor any director or officer of the Company has paid or become liable to
      pay any fine, penalty, surcharge or interest in relation to Tax for which
      the Company is liable.

                                       43
<PAGE>

3.4   Save as provided for in the Accounts there is no existing contingent or
      deferred liability for Tax including liability for Tax which might arise
      as a result of the execution of this Agreement or Completion.

3.5   There are no unutilised Tax allowances, unrelieved Tax losses or excess
      foreign tax credit available to the Company or outstanding entitlements to
      make any claim, election, appeal or application in relation to Tax.

3.6   The Company has not entered into or been engaged in or been a party to any
      transaction or series of transactions or scheme or arrangement of which
      the main purpose or one of the main purposes was the avoidance or deferral
      of Tax or a reduction in the liability to Tax of the Company.

3.7   All of the Company's income is exempt from Tax or is taxable at a
      concessionary or reduced rate of Tax in accordance with the Philippine
      Economic Zone Authority regulations.

3.8   The Company is not and has not at any time in the period of six years
      ending with the date of this Agreement been liable to Tax in any
      jurisdiction other than the Philippines or, in the case of a Investee
      Company, the jurisdiction in which it is incorporated.

4.    CORPORATE MATTERS

4.1   The Company has been duly incorporated and is validly existing and no
      order has been made or petition presented or resolution passed for the
      winding up of the Company or for an administration order in respect of the
      Company and no distress, execution or other process has been levied on any
      of its assets. The Company is not insolvent or unable to pay its debts and
      no receiver or receiver and manager or similar officer has been appointed
      by any person over its business or assets or any part thereof and no power
      to make any such appointment has arisen.

4.2   All the issued shares in the capital of the Company are fully paid up and
      legally and beneficially owned by the BVI Companies. The BVI Companies are
      the legal and beneficial owners of all the issued shares in the capital of
      the Company free and clear of all and any lien, charge, option, right of
      pre-emption or other encumbrance or third party right whatsoever.

4.3   The Company has no, and never has had any, subsidiary or any shares or
      participating interest in any company other than the Investee Companies.
      The information on the Investee Companies set out in Schedule 4 is true
      and accurate .

4.4   The Company has never reduced, repaid, redeemed or purchased any of its
      share capital or agreed to do any of the same.

4.5   There are no options or other agreements outstanding which call for the
      issue of or accord to any person the right to call for the issue of any
      shares in the capital of the Company or loan capital or other securities
      of the Company or the right to require the creation of any mortgage,
      charge, pledge, lien or other security or encumbrance over any of the
      shares of the Company or any of the assets of the Company (including

                                       44
<PAGE>

      without limitation, rights of any third party arising out of the proposal
      of the Company adopted on 10 October 2000 by the Directors and the Vendors
      relating to a private placement of shares in the Company up to a value of
      US$9,000,000).

4.6   The copies of the Articles of Incorporation and By-laws of the Company
      which are attached to the Disclosure Letter are current and complete in
      all respects. The Company has complied with its Articles of Incorporation
      and By-laws in all respects and none of the activities, agreements,
      commitments or rights of the Company is ultra vires or unauthorised.

4.6   The stock and transfer book and all other statutory books of the Company
      are up to date and contain true, full and accurate records of all matters
      required to be dealt with therein, and all legal requirements relating to
      the issue of shares and other securities by the Company have been complied
      with.

4.7   The execution and delivery of, and the performance by the Vendors and the
      Company of their obligations under this Agreement shall not:

      (i)   result in a breach of, or constitute a default under, any
            instrument, contract, document or agreement, to which any Vendor or
            the Company (as the case may be) is a party or by which the any
            Vendor or the Company is bound; and/or

      (ii)  result in a breach of any law, rules, regulations, ordinances,
            order, judgment or decree of or undertaking to any court, Government
            Authority, statutory authority or regulatory body (including,
            without limitation, any relevant stock exchange or securities
            council) to which any Vendor or the Company (as the case may be) is
            a party or by which any Vendor or the Company is bound.

4.8   This Agreement has been duly executed and delivered by the Vendors and
      constitutes a legal, valid and binding obligation of the Vendors
      enforceable against the Vendors in accordance with its terms.

4.9   The Vendors are not and will not be required to obtain any consent or
      Governmental Approval in connection with the execution and delivery of
      this Agreement or the consummation or performance of any its obligations
      contemplated under this Agreement.

5.    TRADING AND GENERAL COMMERCIAL MATTERS

5.1   The Company has good and marketable title to (with full power to sell) all
      such assets as are necessary to enable it properly to conduct its business
      as such business has been conducted prior to the date hereof and to all
      inventory used in its business. All such assets and inventory are free
      from any liens, mortgages, charges, encumbrances, hire or hire purchase or
      similar agreements or other third party rights and are in the possession
      or under the control of the Company. The inventory is in good condition
      and of satisfactory quality, meets all relevant statutory, regulatory and
      industry accepted standards and is capable of being sold by the Company in
      the ordinary course of business in accordance with its list prices without
      rebate or allowances and all other assets owned or used by the Company are
      in good repair and fit for use for

                                       45
<PAGE>

      the purposes for which designed, acquired or used by the Company. Finished
      goods produced by the Company meet all applicable contractual
      specifications at the time of production.

5.2   The Company is not a party to:

      (a)   any unusual or onerous contract, any contract not entered into in
            the ordinary course of business or not on arm's length terms, nor
            any contract which cannot be terminated without penalty or other
            compensation on less than 12 months' notice. For the purposes of
            this sub-clause, the term "unusual" and "onerous" will be determined
            by reference to industry practice;

      (b)   any contract containing exclusivity obligations, non-competition
            provisions or similar terms;

      (c)   any contract for the purchase or use by the Company of materials,
            supplies or equipment which is in excess of the requirements of the
            Company for its normal operating purposes or requires expenditure in
            excess of US$100,000 or its equivalent in local currency;

      (d)   any agency, distribution, marketing, purchasing, franchising,
            licensing (whether by or to the Company), joint venture, agency,
            shareholders' or partnership arrangement or agreement or similar
            arrangement or agreement; and

      (e)   any contract for the supply of goods or services requiring payments
            in excess of US$100,000 or its equivalent in local currency that has
            not been entered into on the Company's standard terms and conditions
            of sale, a copy of which is attached to the Disclosure Letter.

5.3   To the best of the Vendor's knowledge, there are no contracts or
      obligations, agreements, arrangements or concerted practices involving the
      Company and no practices in which the Company is engaged which are void,
      illegal, unenforceable, registrable or notifiable under or which
      contravene any anti-trust legislation or regulations anywhere in the
      world, nor has the Company received any threat or complaint or request for
      information or investigation in relation to or in connection with any such
      legislation or regulations.

5.4   With respect to each contract, commitment, arrangement, understanding,
      tender and bid involving the Company:

      (a)   the Company has duly performed and complied in all material respects
            with each of its obligations thereunder;

      (b)   the Company is under no obligation which cannot readily be
            fulfilled, performed or discharged by it on time and without undue
            or unusual expenditure or effort or loss;

                                       46
<PAGE>

      (c)   to the best of the Vendors' knowledge, there are no grounds for
            rescission, avoidance, repudiation or termination and the Company
            has not received any notice of termination; and

      (d)   none of the other parties thereto is in default thereunder.

5.5   No person has given any guarantee of or indemnity or security for any
      liability of the Company, nor has the Company given any guarantee of or
      indemnity or security for the liability of any other person.

5.6   The execution, delivery and performance of this Agreement is not liable to
      result in the breach, cancellation or termination of any of the terms or
      conditions of or constitute a default under any agreement, commitment or
      other instrument affecting the Company or its property or assets or in the
      acceleration of any obligation or termination of any commitment or
      facility under any loan or financial agreement or the loss of the benefit
      of or liability to refund or repay any grant or financial or fiscal
      concession or violate any law or any rule or regulation of any
      administrative agency or Government Authority or any order, writ,
      injunction or decree of any court, administrative agency or Government
      Authority affecting the Company.

5.7   The Vendors are not aware of any circumstances whereby, following a change
      in the control of the Company or in the composition of the board of
      directors of the Company, any of the principal customers of or suppliers
      to the Company would have the right to, or would, cease to remain
      customers or suppliers to the same extent and of the same nature as prior
      to the date hereof.

5.8   The Company has no liabilities except liabilities arising in the ordinary
      course of business under contracts for service, purchase orders, supply
      contracts or sale contracts, nor does it have any other liabilities direct
      or indirect, absolute or contingent, not required by generally accepted
      accounting principles to be referred to in the Accounts, including, but
      not limited to, off-balance sheet financing arrangements.

5.9   The Company is not the subject of any official investigation or inquiry
      and none of the Vendor is aware of any facts which are likely to give rise
      to any such investigation or inquiry.

5.10  The Company has complied with the requirements or conditions of all
      statutes, treaties, regulations, by-laws, codes, orders and other
      obligations of whatsoever nature relating to the Company and the carrying
      on of its business and has obtained and complied with all registrations,
      licences and consents necessary or advisable for the carrying on of its
      business, and all such registrations, licences and consents are valid and
      subsisting and none of the Vendors knows of any reason why any of them
      should be suspended, cancelled or revoked (whether as a result of the sale
      and purchase of the Sale Shares pursuant to this Agreement or otherwise).
      Neither the Company, nor any of its directors, employees or agents in
      relation to their functions in or on behalf of the Company, has committed
      any criminal offence or any tort or any breach of any such statute,
      treaty, regulation, by-law, code, order or other obligation.

                                       47
<PAGE>

5.11  The Disclosure Letter sets out full and accurate details of each bank and
      similar account of the Company.

5.12  No act or transaction has been effected by or on behalf of the Company
      involving the making or authorising of any payment, or the giving of
      anything of value, to any government official, political party, party
      official or candidate for political office for the purpose of influencing
      the recipient in his or its official capacity in order to obtain business,
      retain business or direct business to the Company or any other person or
      firm.

5.13  All goods consigned to the Company by its customers are in good condition,
      and no liability in respect of such goods has arisen on the part of the
      Company.

6.    THE PROPERTIES

6.1   The Properties comprise all the land and premises occupied or otherwise
      used by the Company. The Company does not own any Property.

6.2   The Company is the lessee of the Properties under an enforceable and
      binding contract, copies of which (and any amendments) have been provided
      to the Purchaser. The Company is the legal and beneficial owner of
      leasehold interest in the Properties free and clear of all encumbrances.

6.3   The Company has exclusive and unrestricted possession of the Properties.

6.4   Save for any applicable statutory restrictions, there are no covenants,
      restrictions, burdens, stipulations, rights of way, easements, conditions,
      outgoings, terms, overriding interests, rights or licences affecting any
      of the Properties which are of an unusual or onerous nature or which
      adversely affect the use of the Properties for which they are currently
      used.

6.5   The present use of the Properties is the permitted use under applicable
      zoning legislation. There are no onerous or unusual conditions adversely
      affecting the Company's use and enjoyment of the Properties when compared
      to properties of a similar type or location. The Properties comply with
      all statutes, regulations, by-laws and other relevant legislation.

6.6   There are no outstanding disputes, notices or complaints which affect or
      might in the future affect the use of any of the Properties for the
      purposes for which they are now used.

6.7   No structural or other material defects have appeared in respect of or
      affecting the buildings and structures on or comprising any of the
      Properties or any parts thereof and all such buildings and structures are
      in good and substantial repair and condition.

6.8   The Company has not at any time assigned or otherwise disposed of any
      property, leasehold or otherwise, in respect of which it has a continuing
      liability (contingent or otherwise) for payment of rent and/or for any
      other liability.

                                       48
<PAGE>

7.    ENVIRONMENTAL ISSUES

The Company has complied with and is in compliance with all applicable
Environmental Laws and has all Environmental Licences required for the carrying
on of its business. To the best of the Vendors' knowledge there are no
circumstances or grounds on which any of its Environmental Licences may be
withdrawn, suspended or varied.

8.    CONFIDENTIAL INFORMATION AND INTELLECTUAL PROPERTY

8.1   (a)   The Company does not use any processes and is not engaged in any
            activities which involve the misuse of any Third Party Confidential
            Information.

      (b)   Save for Third Party Confidential Information made available to the
            Company in the ordinary course of business, all agreements and/or
            arrangements under which Third Party Confidential Information is
            made available to the Company are set out in the Disclosure Letter.
            The Company is not in breach of any agreement or arrangement under
            which Third Party Confidential Information is made available to it
            and the Vendors are not aware of the existence of any circumstances
            under which the Company's right to use such Third Party Confidential
            Information may be terminated.

      (c)   The Vendors are not aware of any actual or alleged misuse by any
            person of any of the Company's Confidential Information. The Company
            has not disclosed to any person any of its Confidential Information
            except where such disclosure was properly made in the normal course
            of the Company's business and was made subject to an agreement under
            which the recipient is obliged to maintain the confidentiality of
            such Confidential Information and is restrained from further
            disclosing it or using it other than for the purposes for which it
            was disclosed by the Company.

8.2   The Company is the sole unencumbered legal and beneficial owner and, where
      registered, the sole registered proprietor, of all the Intellectual
      Property used in its business, including, but not limited to, the
      Intellectual Property listed in the Disclosure Letter.

8.3   None of such Intellectual Property, nor the validity or subsistence of the
      Company's interest therein, is or has during the last six years been the
      subject of any current, pending or threatened challenge, claim or
      proceedings, or been infringed or misused by any third party and there are
      no facts or matters which might give rise to any of the same.

8.4   The carrying on of the Company's business does not require any
      authorisations, permissions, licences or consents from, or the making of
      royalty or similar payments to, any third party and the Company is not
      engaged in any activities which involve the use of or which infringe any
      Intellectual Property belonging to any third party.

                                       49
<PAGE>

9.    INSURANCE

Copies of the Company's current insurance policies are attached to the
Disclosure Letter. Nothing has been done or omitted to be done by or on behalf
of the Company which would make any such policy of insurance void or voidable or
enable the insurers to avoid the same. There is no claim outstanding under any
such policy and the Vendors are not aware of any circumstances likely to give
rise to such a claim or result in an increased rate of premium.

10.   LITIGATION

Neither the Company, nor any person for whose acts or defaults the Company may
be vicariously liable, are engaged whether as plaintiff or defendant or
otherwise in any civil, criminal or arbitration proceedings or any proceedings
before any tribunal (save for debt collection by the Company in the ordinary
course of business) and there are no proceedings threatened or pending against
the Company or any such person and there are no facts which are likely to give
rise to any such litigation or proceedings.

11.   EMPLOYMENT AND PENSION MATTERS

11.1  There is no existing or threatened or pending industrial or trade dispute
      involving the Company and any of its employees and there are no agreements
      or arrangements (whether oral or in writing or existing by reason of
      custom and practice and whether or not legally binding) between the
      Company and any trade union or other employees' representatives or
      organisation concerning or affecting the Company's employees.

11.2  The Company has neither given notice of any redundancies nor started
      consultations with any independent trade union or employees'
      representatives within the preceding period of one year in relation to any
      of the Company's employees. No circumstances have arisen under which the
      Company is likely to be required to pay damages for wrongful dismissal or
      breach of contract, to make any contractual or statutory redundancy
      payment or make or pay any compensation in respect of unfair dismissal, to
      make any other payment under any employment protection or other employment
      statutes, treaties, regulations, by-laws, codes or orders or to reinstate
      or re-engage any former employee.

11.3  Save as disclosed in the Disclosure Letter, there are no pension, share
      option, share incentive, life assurance, disability or similar schemes,
      arrangements or obligations for any employees or directors of the Company,
      and the Company has no obligation (whether legally binding or established
      by custom) to pay any pension or make any other payment after retirement
      or death to or in respect of any person who is now or has been an officer
      or employee of the Company and are not party to any scheme or arrangement
      having as its purpose or one of its purposes the making of such payments.

12.   ARRANGEMENTS WITH CONNECTED PERSONS ETC.

The Company has not made any gift or loan to, or provided any guarantee or
security for a loan made by any other person to, any Vendor or director or
former director or any of their respective associated persons nor has it been a
party to any transaction or arrangement with

                                       50
<PAGE>

any of the foregoing other than arm's length service contracts, and the
Company's profits or financial position have not at any time been adversely
affected by any contract or arrangement which is not of an entirely arm's-length
nature.

13.   MATTERS SINCE THE ACCOUNTING DATE

13.1  Since the Accounting Date, there has been no interruption or alteration in
      the nature, scope or manner of the Company's business which business has
      been carried on lawfully and in the ordinary and usual course of business
      as previously carried on and so as to maintain it as a going concern;

13.2  Since the Accounting Date, there has been no material adverse change in
      the financial condition or the position, prospects, assets or liabilities
      of such business or the Company as compared with the position disclosed by
      the Accounts;

13.3  Since the Accounting Date, the Company has continued to pay its creditors
      in the ordinary course of business and no unusual trade discounts or other
      special terms have been incorporated into any contract entered into by the
      Company;

13.4  The Company's six month rolling forecasts for purchases by its customers
      as at 30 September 2002 are attached to the Disclosure Letter together
      with the rolling forecasts as at 31 October 2002. Save as is apparent on
      the face of these forecasts, no substantial customer or supplier of the
      Company for the accounting period ending on 30 September 2002 has ceased
      or indicated that it is likely to cease trading with or supply to the
      Company, or reduced or indicated that it is likely to reduce substantially
      its trading with or supplies to the Company, or changed or indicated that
      it is likely to change substantially the terms upon which it is prepared
      to trade with or supply the Company (other than normal price and minor
      changes);

13.5  Since the Accounting Date, no indebtedness of the Company has become
      payable or capable of being declared payable prematurely.

13.6  Since the Accounting Date, no indebtedness has been repaid other than
      indebtedness to its bankers or indebtedness repayable in the ordinary
      course of business;

13.7  Since the Accounting Date, the Company has not cancelled, waived, released
      or discontinued any rights, debts or claims or suffered any damage,
      destruction or loss (whether or not covered by insurance) affecting its
      business or assets;

13.8  Since the Accounting Date, the Company has not incurred any capital
      expenditure or made any capital commitment of an amount in excess of
      US$100,000 (or its equivalent in local currency) or disposed of any fixed
      assets having a value of more than US$100,000 (or its equivalent in local
      currency) in aggregate;

13.8  Since the Accounting Date, no dividends, bonuses or other distributions
      have been declared, paid or made in respect of any of the Company's
      shares.

                                       51
<PAGE>

14.   ACCURACY OF INFORMATION PROVIDED

14.1  All information contained in the Recitals to this Agreement and in
      Schedules 1 to 6 inclusive and Schedule 9 to this Agreement is true and
      accurate in all respects and not misleading in any respect.

14.2  All written information given to the Purchaser and its professional
      advisers by the Vendors, the officers and employees of the Company, the
      Vendors' professional advisers and the Company's advisers during the
      negotiations prior to this Agreement was when given true and accurate to
      the best of their knowledge.

14.3  All information contained in the Disclosure Letter is true and accurate in
      all respects and fairly presented and there is no fact or matter which has
      not been disclosed in the Disclosure Letter which renders any such
      information untrue or misleading and there is no fact or matter concerning
      the Company and its business and affairs which has not on the basis of the
      utmost good faith been disclosed in the Disclosure Letter which would
      reasonably be expected to influence the decision of the Purchaser to
      proceed with the purchase of the Sale Shares on the terms of this
      Agreement.

                                    PART TWO

                     WARRANTIES REGARDING THE BVI COMPANIES

15.   CORPORATE MATTERS

15.1  The BVI Companies have been duly incorporated and are validly existing and
      no order has been made or petition presented or resolution passed for the
      winding up of any of the BVI Companies or for an administration order in
      respect of any of the BVI Companies and no distress, execution or other
      process has been levied on any of the assets of the BVI Companies. None of
      the BVI Companies are insolvent or unable to pay their debts and no
      receiver or receiver and manager or similar officer has been appointed by
      any person over the business or assets of any BVI Company or any part
      thereof and no power to make any such appointment has arisen.

15.2  All the issued shares in the capital of the BVI Companies are fully paid
      up and legally and beneficially owned by the Vendors. The Sale Shares
      constitute all the issued shares in the capital of the BVI Companies and
      are fully paid up. The Vendors are the legal and beneficial owners of the
      Sale Shares set opposite their names in column 2 of Schedule 1, free and
      clear of all and any lien, charge, option, right of pre-emption or other
      encumbrance or third party right whatsoever. Upon Completion, each of the
      BVI Companies shall become a wholly owned subsidiary of the Purchaser.

15.3  The BVI Companies have no, and never have had any, subsidiary or any
      shares or participating interest in any company other than the Company.
      The information on the Company set out in Schedule 4 is true and accurate.

                                       52
<PAGE>

15.4  None of the BVI Companies have ever reduced, repaid, redeemed or purchased
      any of its share capital or agreed to do any of the same.

15.5  There are no options or other agreements outstanding which call for the
      issue of or accord to any person the right to call for the issue of any
      shares in the capital of any of the BVI Companies or loan capital or other
      securities of any of the BVI Companies or the right to require the
      creation of any mortgage, charge, pledge, lien or other security or
      encumbrance over any of the shares of any of the BVI Companies or any of
      the assets of any BVI Company.

15.6  The copies of the Articles of Incorporation and By-laws (or equivalent
      constitutive documents) of the BVI Companies which are attached to the
      Disclosure Letter are accurate and complete in all respects. Each of the
      BVI Companies has complied with its Articles of Incorporation and By-laws
      (or equivalent constitutive documents) in all respects and none of the
      activities, agreements, commitments or rights of such BVI Company is ultra
      vires or unauthorised.

15.7  The stock and transfer book and all other statutory books of the BVI
      Companies are up to date and contain true, full and accurate records of
      all matters required to be dealt with therein, and all legal requirements
      relating to the issue of shares and other securities by the BVI Companies
      have been complied with.

15.8  The execution and delivery of, and the performance by the BVI Companies of
      their obligations under this Agreement shall not:

      (i)   result in a breach of, or constitute a default under, any
            instrument, contract, document or agreement, to which any BVI
            Company is a party or by which the any BVI Company is bound; and/or

      (iii) result in a breach of any law, rules, regulations, ordinances,
            order, judgment or decree of or undertaking to any court, Government
            Authority, statutory authority or regulatory body (including,
            without limitation, any relevant stock exchange or securities
            council) to which any BVI Company is a party or by which any BVI
            Company is bound.

15.9  This Agreement has been duly executed and delivered by the BVI Companies
      and constitutes a legal, valid and binding obligation of the BVI Companies
      enforceable against the BVI Companies in accordance with its terms.

15.10 The BVI Companies are not and will not be required to obtain any consent
      or Governmental Approval in connection with the execution and delivery of
      this Agreement or the consummation or performance of any their obligations
      contemplated under this Agreement.

15.11 The BVI Companies are not the subject of any official investigation or
      inquiry.

15.12 The BVI Companies have complied with the requirements or conditions of all
      statutes, treaties, regulations, by-laws, codes, orders and other
      obligations of whatsoever nature relating to the BVI Companies and the
      carrying on of their

                                       53
<PAGE>

      businesses and have obtained and complied with all registrations, licences
      and consents necessary or advisable for the carrying on of their
      businesses, and all such registrations, licences and consents are valid
      and subsisting. Neither the BVI Companies, nor any of their directors,
      employees or agents in relation to the BVI Companies, have committed any
      criminal offence or any tort or any breach of any such statute, treaty,
      regulation, by-law, code, order or other obligation.

15.13 Each of the BVI Companies has been established for the sole purpose of
      owning shares or issued capital stock in the Company and for no other
      reason whatsoever, and is not, and never has been, involved in any other
      business or trading activities or operations apart from ownership of
      shares or issued capital stock of the Company and does not have any
      employees. Apart from the Sale Shares, the BVI Companies do not have any
      other assets, or liabilities (whether actual or contingent and whether
      quantified or disputed or otherwise) and have not entered into any
      contracts or arrangements with any party.

16.   TAX RECORDS AND RETURNS

16.1  No event, act, transaction or omission has occurred or shall occur between
      the Accounting Date and Completion which could give rise to a claim under
      the terms of Clause (d)(iii)(4) in this Schedule 7.

16.2  The BVI Companies have duly filed all returns, computations, notices and
      information required to be made or provided by the BVI Companies for any
      Tax purpose and the same have been made or given within the requisite
      periods and on a proper basis and when made were true and accurate in all
      material respects and are up to date and none of them is or so far as the
      Vendors are aware, likely to be the subject of any dispute with any Tax
      authority.

16.3  The BVI Companies have paid, and have withheld, deducted and accounted to
      the relevant Tax authorities for, all Tax which they have become liable to
      pay, withhold, deduct or account for on or before the date hereof and,
      within the period of six years prior to the date hereof, neither the BVI
      Companies nor any director or officer of the BVI Companies has paid or
      become liable to pay any fine, penalty, surcharge or interest in relation
      to Tax for which the BVI Companies are liable.

16.4  Save as provided for in the Accounts there is no existing contingent or
      deferred liability for Tax including liability for Tax which might arise
      as a result of the execution of this Agreement or Completion.

16.5  There are no unutilised Tax allowances, unrelieved Tax losses or excess
      foreign tax credit available to the BVI Companies or outstanding
      entitlements to make any claim, election, appeal or application in
      relation to Tax.

16.6  The BVI Companies have not entered into or been engaged in or been a party
      to any transaction or series of transactions or scheme or arrangement of
      which the main

                                       54
<PAGE>

      purpose or one of the main purposes was the avoidance or deferral of Tax
      or a reduction in the liability to Tax of the BVI Companies.

16.7  All of the BVI Companies' income is exempt from Tax.

16.8  The BVI Companies are not and have not at any time in the period of six
      years ending with the date of this Agreement been liable to Tax in any
      jurisdiction other than the British Virgin Islands.

17.   LITIGATION

None of the BVI Companies, nor any person for whose acts or defaults such BVI
Company may be vicariously liable, are engaged whether as plaintiff or defendant
or otherwise in any civil, criminal or arbitration proceedings or any
proceedings before any tribunal and there are no proceedings threatened or
pending against any of the BVI Companies or any such person and there are no
facts which are likely to give rise to any such litigation or proceedings.

                                   PART THREE

                        WARRANTIES REGARDING THE VENDORS

18.1  This Agreement has been duly executed and delivered by the Vendors and
      constitutes a legal, valid and binding obligation of the Vendors
      enforceable against the Vendors in accordance with its terms.

18.2  The Vendors are not and will not be required to obtain any consent or
      Governmental Approval in connection with the execution and delivery of
      this Agreement or the consummation or performance of any of their
      obligations contemplated under this Agreement.

                                       55
<PAGE>

                                   SCHEDULE 8

                           WARRANTIES OF THE PURCHASER

(a)   The Purchaser represents and warrants to each of the Vendors that, except
      as set forth in the Purchaser's Disclosure Letter, each of the statements
      set out in Clauses (a)(i) to (a)(viii) inclusive below of this Schedule 8
      (the "PURCHASER'S WARRANTIES") will at Completion be true and accurate:

      (i)   On Completion, the Consideration Shares are and shall have been
            authorised, validly issued, allotted and fully paid-up and are free
            from all and any Encumbrances together with all rights and benefits
            attaching thereto as at the Completion Date and no other person has
            or shall have any rights of pre-emption over such Consideration
            Shares.

      (ii)  On Completion, each of the Vendors shall be the legal and beneficial
            owners of the relevant Consideration Shares allotted to each of
            them.

      (iii) The execution and delivery of, and the performance by the Purchaser
            of its obligations under this Agreement (including the allotment of
            the Consideration Shares to the Vendors) shall not:

            (1)   result in a breach of, or constitute a default under, any
                  instrument, contract, document or agreement, to which the
                  Purchaser is a party or by which the Purchaser is bound;
                  and/or

            (2)   result in a breach of any law, rules, regulations, ordinances,
                  order, judgment or decree of or undertaking to any court,
                  Government Authority, statutory authority or regulatory body
                  (including, without limitation, any relevant stock exchange or
                  securities council) to which the Purchaser is a party or by
                  which the Purchaser is bound.

      (iv)  The Purchaser is a corporation duly organized, validly existing and
            in good standing under the laws of its jurisdiction of organization
            with full corporate power and authority to conduct its business as
            presently conducted, to own or use the properties and assets that it
            purports to own or use, and to perform all its obligations.

      (v)   This Agreement has been duly executed and delivered by the Purchaser
            and constitutes a legal, valid and binding obligation of the
            Purchaser enforceable against the Purchaser in accordance with its
            terms.

      (vi)  The Purchaser is not and will not be required to obtain any consent
            or Governmental Approval in connection with the execution and
            delivery of this Agreement or the consummation or performance of any
            its obligations contemplated under this Agreement (save for any
            approval or exemption required to be obtained in relation to the
            grant of the Option Shares).

                                       56
<PAGE>

      (vii) There is no pending Proceeding that has been commenced against the
            Purchaser and that challenges, or may have the effect of preventing,
            delaying, or making illegal or otherwise interfering with, the
            performance by the Purchaser of any of its obligations under this
            Agreement and no such Proceeding has been threatened.

      (viii)The unaudited management accounts of the Purchaser for the period
            ended 31 October 2002 have been prepared in accordance with the
            accounting policies of the Purchaser save as set out in the
            Disclosure Letter and show a fair view of the assets and liabilities
            (whether actual or contingent and whether quantified or disputed or
            otherwise) and profits and losses of the Purchaser as at and to 31
            October 2002.

      The Purchaser's Warranties are given subject to matters fully, fairly and
      specifically disclosed in the Purchaser's Disclosure Letter but no other
      information relating to the Purchaser of which the Vendors have knowledge
      (actual or constructive) and no investigation by or on behalf of the
      Vendors shall prejudice any claim made by the Vendors under the
      Purchaser's Warranties or operate to reduce any amount recoverable, and
      liability in respect thereof shall not be confined to breaches discovered
      before Completion. No letter, document or other communication shall be
      deemed to constitute a disclosure for the purposes of this Agreement
      unless the same is accepted as such by the Vendors and is expressly
      referred to in the Purchaser's Disclosure Letter.

(b)   The Purchaser undertakes to and agrees with each Vendor that it shall, and
      shall procure that its subsidiaries shall, in relation to Viko Technology,
      Inc., enforce or procure to be enforced to their full extent the
      obligations of the Target Warrantors (as defined in the Investment
      Agreement) to the Purchaser under the terms of the Target Warranties (as
      defined in the Investment Agreement) and Indemnities (as defined in the
      Investment Agreement). For the avoidance of doubt, and for identification
      purposes only, the Target Warranties (as defined in the Investment
      Agreement) are reproduced in Part One of this Schedule 8 below.

(c)   The liabilities of the Purchaser under the Purchaser's Warranties shall
      cease after one year from the Completion Date except in respect of matters
      which have been the subject of a bona fide written claim made before such
      date by the Vendors or the Vendors' Lawyers to the Purchaser or the
      Purchaser's Lawyers save in relation to:

      (i)   Clauses (a)(i) and (a)(ii) of this Schedule 8; and

      (ii)  a claim or claims in relation to the Purchaser's Warranties arising
            by reason of fraud, wilful concealment, dishonesty or deliberate
            non-disclosure on the part of the Purchaser or on the part of any
            officer or representative of the Purchaser prior to the Completion
            Date, in which event there shall be no limit on the amount
            recoverable by the Vendors from the Purchaser in respect of such
            claim or claims and the time period within which such a claim or
            claims may be brought shall be extended to ten years from the
            Completion Date.

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<PAGE>

(d)   Without limiting the above, the liabilities of the Purchaser under
      Purchaser's Warranties shall be limited to a maximum aggregate amount of
      US$5,000,000. After Completion Date and up to and including the first
      anniversary of Completion Date, the Purchaser's liability in relation to
      the Purchaser's Warranties (in respect of which a bona fide written claim
      has been made before the first anniversary of the Completion Date by the
      Vendors or the Vendors' Lawyers to the Purchaser or the Purchaser's
      Lawyers) shall be limited to a maximum aggregate amount of US$5,000,000.
      From the first anniversary of the Completion Date onwards, the Purchaser's
      liability in relation to the Purchaser's Warranties shall be limited to a
      maximum aggregate amount of US$2,000,000. In addition, the Purchaser shall
      not incur any liability until the aggregate amount of all liabilities,
      exceeds US$100,000 (the "PURCHASER'S BASKET"), at which point, the
      Purchaser shall be liable for the complete amount of all liabilities,
      including, without limitation US$100,000 of the Purchaser's Basket.

(e)   Without restricting the rights of the Vendors or otherwise affecting the
      ability of the Vendors to claim damages on any other basis available to it
      (save for a claim or claims in relation to the Purchaser's Warranties
      arising by reason of fraud, wilful concealment, dishonesty or deliberate
      non-disclosure on the part of the Purchaser or on the part of any officer
      or representative of the Purchaser prior to the Completion Date, in which
      event there shall be no limit on the amount recoverable by the Vendors
      from the Purchaser in respect of such claim or claims and the time period
      within which such a claim or claims may be brought shall be extended to
      ten years from the Completion Date), the Purchaser hereby undertakes, for
      so long as the Purchaser's liability under the Purchaser's Warranties
      survives pursuant to Clause (c) above of this Schedule 8, to indemnify and
      keep indemnified the Vendors and their officers, directors, employees,
      agents and shareholders (collectively, the "INDEMNIFIED VENDORS") against:

      (i)   any loss or liability suffered by any of the Indemnified Vendors as
            a result of, arising from or in connection with any breach of any of
            the Purchaser's Warranties including, but not limited to, any
            dimunition in the value of the Consideration Shares and any payment
            made or required to be made by the Indemnified Vendors and any
            costs, expenses, fines, penalties and Taxes incurred as a result of
            such breach. For the purposes of this Clause (e)(i), any dimunition
            in value of the Consideration Shares will be determined by reference
            to the fair market value of the Consideration Shares. The fair
            market value will be determined by an independent third party valuer
            to be appointed by agreement by the Vendors and the Purchaser. In
            the event that there is any disagreement on the valuer, either the
            Vendors or the Purchaser may request the President of the Institute
            of Certified Public Accountants of Singapore to decide on the
            valuer. The Vendors and the Purchaser shall engage the valuer on his
            standard terms and conditions;

      (ii)  all costs and expenses properly and reasonably incurred by any of
            the Indemnified Vendors in connection with or as a result of such
            breach and any costs (including legal costs on a solicitor and own
            client basis), expenses or other liabilities which any of them may
            incur either before or after the commencement or any action in
            connection with (1) any legal proceedings in

                                       58
<PAGE>

            which any of the Indemnified Vendors claims that any of the
            Purchaser's Warranties has been broken or is untrue and in which
            judgement is given for any of the Indemnified Vendors; or (2) the
            enforcement of any settlement of, or judgement in respect of, such
            claim.

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                                       59
<PAGE>

                             PART ONE TO SCHEDULE 8

All defined terms used but not defined in this Part One to Schedule 8 shall have
the respective meaning ascribed to them in the Viko Share Purchase Agreement.

                    REPRESENTATIONS AND WARRANTIES OF SELLERS{TC}

Sellers jointly and severally represent and warrant to Buyer that, except as set
forth in Sellers' Disclosure Schedule:

3.1   ORGANIZATION AND GOOD STANDING{TC}

      (a) Each Acquired Company is a corporation duly organized, validly
      existing and in good standing under the laws of its jurisdiction of
      organization, with full corporate power and authority to conduct its
      business as presently conducted, to own or use the properties and assets
      that it purports to own or use, and to perform all its obligations under
      all its Company Contracts. Each Acquired Company is duly qualified to do
      business as a foreign entity and is in good standing in each jurisdiction
      in which either the ownership or use of the properties owned or used by
      it, or the nature of the activities conducted by it, requires such
      qualification.

      (b) Sellers have delivered to Buyer copies of all the Governing Documents
      and the complete and accurate stock records of each Acquired Company, as
      currently in effect. Section 3.1(b) of Sellers' Disclosure Schedule
      contains an accurate and complete listing of each Acquired Company's
      jurisdiction of formation and other jurisdictions in which it is
      authorized to do business.

3.2   ENFORCEABILITY; NO CONFLICT{TC}

      (a) Each Seller has the absolute and unrestricted right, power, authority
      and capacity to execute and deliver this Agreement and the Ancillary
      Agreements to which such Seller is a party and to perform such Seller's
      obligations under this Agreement and such Ancillary Agreements. Assuming
      due authorization, execution and delivery of this Agreement by Buyer, this
      Agreement constitutes the legal, valid and binding obligation of each
      Seller, enforceable against each Seller in accordance with its terms.
      Assuming due authorization, execution and delivery by the other parties
      thereto, each Ancillary Agreement to which a Seller becomes a party will,
      upon execution and delivery, constitute that Seller's legal, valid and
      binding obligation, enforceable against him in accordance with its terms.

      (b) Assuming Buyer's compliance with relevant Laws relating to the
      purchase of the Shares, Sellers are not and will not be required to give
      any notice to any Person or obtain any Consent or Governmental
      Authorization in connection with the execution and delivery of this
      Agreement or the consummation or performance of any of the Contemplated
      Transactions. Not to limit the generality of the foregoing, no Acquired
      Company, acting either independently or in conjunction with any of the
      other Acquired Companies, engages in any military contracts or is
      otherwise involved in

                                       60
<PAGE>

      United States national security matters that may cause the Contemplated
      Transactions to be disallowed under Exon-Florio.

      (c) Neither the execution and delivery of this Agreement nor the
      consummation or performance of any of the Contemplated Transactions will
      directly or indirectly (with or without notice or lapse of time) (i)
      Contravene any provision of the Governing Documents of an Acquired
      Company, or any resolution adopted by the shareholders or board of
      directors of an Acquired Company, (ii) Contravene any Company Contract,
      Governmental Authorization, Law or Order to which any Acquired Company or
      any Seller, or any of the assets owned or used by an Acquired Company, may
      be subject, or (iii) result in the imposition or creation of any
      Encumbrance upon or with respect to any of the assets owned or used by an
      Acquired Company.

3.3   CAPITALIZATION AND OWNERSHIP{TC}

The authorized capital stock of the Company consists of 18,000,000 shares of
common stock, no par value per share, of which 17,320,200 shares are issued and
outstanding, which constitute all the Shares, and no shares of preferred stock.
The attached Schedule of Sellers correctly sets out the Shares owned by each
Seller. The Shares represent all of the issued and outstanding shares in the
Company. Sellers are and will be on the Closing Date the record holders and
beneficial owners of the Shares, free and clear of all Encumbrances. Section 3.3
of Sellers' Disclosure Schedule lists all the Option Holders. The Option Holders
shall not receive shares of stock in the Company and all options held by the
Option Holders shall be cancelled prior to the Closing. Except for the Option
Holders, no other Person has a Contract for the issuance, sale or transfer of
any Security of an Acquired Company. With the exception of the Shares (which are
owned by Sellers), all of the outstanding Securities of each Acquired Company
are owned of record and beneficially by one or more of the Acquired Companies,
free and clear of all Encumbrances. No legend or other reference to any
purported Encumbrance appears upon any certificate representing Securities of
any Acquired Company. All of the outstanding Securities of each Acquired Company
have been duly authorized and validly issued and are fully paid and
nonassessable. None of the outstanding Securities of any Acquired Company was
issued in violation of any Law. No Acquired Company owns, or has any Contract to
acquire, any Securities of any Person or any direct or indirect equity or
ownership interest in any other business.

3.4   FINANCIAL STATEMENTS{TC}

Sellers have delivered to Buyer (a) audited consolidated balance sheets of the
Acquired Companies as at April 30 for each of the years 1999 through 2000,
inclusive, and the related audited consolidated statements of income, changes in
shareholders' equity and cash flow for each of the fiscal years then ended,
together with the report thereon of Delucchi, Hawn & Co., LLP independent
certified public accountants, (b) an audited consolidated balance sheet of the
Acquired Companies as of April 30, 2001 (including the notes thereto, the
"Balance Sheet"), and the related audited consolidated statements of income,
changes in shareholders' equity and cash flow for the fiscal year then ended,
together with the report thereon of Delucchi, Hawn & Co., LLP independent
certified public accountants, and (c) an unaudited consolidated balance sheet of
the Acquired Companies as of October 31, 2001 (the "Interim Balance Sheet") and
the related unaudited consolidated statements of income, changes in
shareholders' equity and cash flow for the 3 months then ended, including in
each case the

                                       61
<PAGE>

notes thereto. Such financial statements and notes fairly present the financial
condition and the results of operations, changes in shareholders' equity and
cash flow of the Acquired Companies as at the respective dates of and for the
periods referred to in such financial statements, all in accordance with GAAP,
subject in the case of interim financial statements to normal recurring year-end
adjustments (the effect of which will not, individually or in the aggregate, be
materially adverse) and the absence of notes that, if presented, would not
differ materially from those included in the Balance Sheet. The financial
statements referred to in this Section reflect the consistent application of
accounting principles throughout the periods involved, except as otherwise
disclosed in the notes to such financial statements. No financial statements of
any Person other than the Acquired Companies are required by GAAP to be included
in the financial statements of the Company.

3.5   BOOKS AND RECORDS{TC}

The books of account, minute books, equity record books and other transactional
records of the Acquired Companies, all of which have been made available to
Buyer, are accurate and complete in all material respects and have been
maintained in accordance with sound business practices, including the
maintenance of an adequate system of internal controls. Each material
transaction of each Acquired Company is accurately recorded on the books and
records of the Acquired Company, and each document (including any Contract,
invoice or receipt) on which entries in the Acquired Company's books and records
are based is accurate and complete in all material respects. The minute books of
each Acquired Company contain accurate records of all meetings held of, and
corporate action taken by, the Acquired Company's shareholders, directors and
directors' committees, and no such meeting has been held for which minutes have
not been prepared and are not contained in such minute books. At the time of the
Closing, all of those books and records will be in the possession of the
respective Acquired Company.

3.6   ACCOUNTS RECEIVABLE{TC}

All Accounts Receivable that are reflected on the Balance Sheet, the Interim
Balance Sheet or the accounting records of each Acquired Company as of the
Closing Date represent or will represent valid obligations arising from sales
actually made or services actually performed in the Ordinary Course of Business.
Subject to reserves established according to GAAP, to Sellers' best Knowledge
each of the Accounts Receivable reflected on the Balance Sheet and Interim
Balance Sheet will be collected in full, without any setoff, within 120 days
after the day on which it first became or becomes due and payable. There is no
contest, claim, defense or right of setoff, other than returns in the Ordinary
Course of Business, under any Contract with any obligor of an Account Receivable
relating to the amount or validity of such Account Receivable. Section 3.6 of
Sellers' Disclosure Schedule contains an accurate and complete list of all
Accounts Receivable as of the date of the Interim Balance Sheet, which list sets
forth the aging of each such Account Receivable.

3.7   INVENTORIES{TC}

All items included in the Inventories are of a quality and quantity usable and,
with respect to finished goods, salable in the Ordinary Course of Business,
except for obsolete items and

                                       62
<PAGE>

items of below-standard quality, all of which have been or will be written off
or written down to net realizable value on the Balance Sheet, the Interim
Balance Sheet or the accounting records of the appropriate Acquired Company as
of the Closing Date, as the case may be. Other than in the Ordinary Course of
Business, no Acquired Company is in possession of any inventory, including goods
already sold, not owned by an Acquired Company. All of the Inventories not
written off have been valued at the Acquired Company's cost thereof on a first
in, first out basis. All of the Inventories now on hand that were purchased
after the date of the Interim Balance Sheet were purchased in the Ordinary
Course of Business at a cost not exceeding market prices prevailing at the time
of purchase. The quantities of each item of Inventory (whether raw materials,
work-in-process or finished goods) are not excessive, but are reasonable in the
present circumstances of the Acquired Companies. Work-in-process Inventories are
now valued and on the Closing Date will be valued according to GAAP applied on a
basis consistent with the basis on which the Balance Sheet was prepared. All
Inventories are maintained at one of the locations of Real Property listed in
Section 3.11(a) of Sellers' Disclosure Schedule.

3.8   NO UNDISCLOSED LIABILITIES{TC}

No Acquired Company has any Liabilities except for Liabilities reflected or
reserved against in the Balance Sheet or the Interim Balance Sheet, and current
Liabilities incurred in the Ordinary Course of Business since the respective
dates thereof.

3.9   NO MATERIAL ADVERSE CHANGE{TC}

Since the date of the Balance Sheet and excluding changes in the general
economic condition or changes generally affecting the industry in which the
Acquired Company operates(provided that such changes do not affect the Acquired
Company in a disproportionate manner), there has been no material adverse change
in the financial or other condition, results of operations, assets (considered
in the aggregate), Liabilities, equity or business of the Company or other
specific changes of concern to Buyer, and no event has occurred or condition has
arisen that (a) may result in such a change, (b) has materially impeded or may
materially impede the ongoing operations of the Company or (c) has significantly
adversely affected or may significantly adversely affect a material asset of the
Company.

3.10  ABSENCE OF CERTAIN CHANGES AND EVENTS{TC}

Since the date of the Balance Sheet, each Acquired Company has conducted its
business only in the Ordinary Course of Business and there has not been any:

      (a) change in an Acquired Company's authorized or issued shares; grant of
      any equity option or right to purchase shares of an Acquired Company;
      issuance of any security convertible into such equity; grant of any
      registration rights; purchase, redemption, retirement or other acquisition
      by an Acquired Company of any shares; or declaration or payment of any
      dividend or other distribution or payment with respect to any shares;

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      (b) amendment to the Governing Documents of an Acquired Company;

      (c) payment (except in the Ordinary Course of Business) or increase by an
      Acquired Company of any bonuses, salaries or other compensation to any
      Seller, director or employee, or entry into any employment, severance or
      similar Contract with any director or employee;

      (d) adoption of, amendment to or increase in the payments to or benefits
      under, any Plan or material Other Benefit Obligation of an Acquired
      Company;

      (e) damage to or destruction or loss of any asset or property of an
      Acquired Company, whether or not covered by insurance, with an aggregate
      value to the Company in excess of $25,000;

      (f) entry into, modification, cancellation or termination of or receipt of
      notice of termination of (i) any license, distributorship, dealer, sales
      representative, joint venture, credit, guaranty or similar Company
      Contract, or (ii) any Contract or transaction involving a total remaining
      commitment by or to an Acquired Company of at least $25,000;

      (g) sale, lease or other disposition of any asset or property of an
      Acquired Company (other than in the Ordinary Course of Business),
      including Intellectual Property, or the creation of any Encumbrance on any
      material asset of an Acquired Company;

      (h) cancellation or waiver of any claims or rights with a value to an
      Acquired Company in excess of $25,000;

      (i) material acceleration or delay in the payment of accounts payable or
      in the collection of Accounts Receivable;

      (j) material change in the accounting methods used by an Acquired Company;
      or

      (k) Contract by an Acquired Company to do any of the foregoing.

3.11  PROPERTIES; ENCUMBRANCES{TC}

      (a) Section 3.11(a) of Sellers' Disclosure Schedule contains (i) a correct
      legal description, street address and tax parcel identification number of
      all Real Property in which an Acquired Company has a fee simple estate and
      (ii) an accurate description (by subject leased Real Property, name of
      lessor, date of lease and term expiration date) of all leases of Real
      Property in which an Acquired Company has a leasehold estate.

      (b) Each Acquired Company owns good and marketable title to its respective
      estates in the Real Property, free and clear of any Encumbrances, other
      than liens for Taxes for the current Tax year which are not yet due and
      payable.

      (c) Sellers have delivered to Buyer true and complete copies of (i) all
      deeds and other instruments (as recorded) by which each Acquired Company
      acquired its estates in the Real Property, (ii) all title insurance
      policies and surveys in the possession of

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      Sellers or an Acquired Company of or pertaining to the Real Property, and
      (iii) all Contracts and other documents evidencing, creating or
      constituting Encumbrances upon the Real Property.

      (d) Use of the Real Property for the various purposes for which it is
      presently being used is permitted as of right under applicable zoning Laws
      and is not subject to "permitted non-conforming" use or structure
      classifications. To Sellers' best Knowledge, all Improvements are in
      compliance with applicable Laws, including those pertaining to zoning,
      building and the disabled. To Sellers' best Knowledge, no part of any
      Improvement encroaches on any real property not included in the Real
      Property, and there are no buildings, structures, fixtures or other
      improvements primarily situated on adjoining property which encroach on
      any part of the Real Property. The Real Property on which each Improvement
      is located (i) abuts on and has direct vehicular access to a public road
      or has access to a public road via a permanent, irrevocable, appurtenant
      easement benefiting such parcel of Real Property and comprising a part of
      the Real Property, (ii) is supplied with public or quasi-public utilities
      and other services appropriate for the operation of the Improvement and
      (iii) to Sellers' best Knowledge, is not located within any flood plain or
      area subject to wetlands regulation or any similar restriction. To
      Sellers' best Knowledge, there is no existing or proposed plan to modify
      or realign any street or highway or any existing or proposed eminent
      domain Proceeding that would result in the taking of all or any part of
      any Real Property or that would prevent or hinder the continued use of any
      Real Property as heretofore used in the conduct of the business of the
      Acquired Companies. Except as otherwise provided for in Section 3.11(d) of
      Sellers' Disclosure Schedule, no Person other than an Acquired Company is
      in possession of any portion of the Real Property.

      (e) Except as otherwise provided for in Section 3.11(e) of Sellers'
      Disclosure Schedule, each Acquired Company owns good and transferable
      title to all of its personal and tangible assets, as well as its other
      assets, free and clear of any Encumbrances.

3.12  CONDITION AND SUFFICIENCY OF TANGIBLE ASSETS{TC}

To Sellers' best Knowledge, the Improvements are structurally sound, are in good
operating condition and repair, ordinary wear and tear excepted, are free from
latent and patent defects, and are adequate for the uses to which they are being
put. Each item of tangible personal property of each Acquired Company currently
used in its Ordinary Course of Business is, to Sellers' best Knowledge, in good
operating condition and repair, ordinary wear and tear excepted, is free from
latent and patent defects and is suitable for immediate use in the Ordinary
Course of Business. The Real Property and tangible personal property of the
Acquired Companies constitute all such assets necessary for the continued
operation of the Acquired Companies after the Closing in the same manner as
before the Closing and are in the possession of or under the control of the
Acquired Companies.

3.13  INTELLECTUAL PROPERTY{TC}

      (a) Each Acquired Company owns or has the right to use pursuant to a valid
      Contract all material items of Intellectual Property necessary for the
      operation of the

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      Acquired Companies as presently conducted and as presently proposed to be
      conducted. Not to limit the generality of the foregoing, each Acquired
      Company has entered into a valid Contract with the employees, consultants
      and contractors collectively listed on Section 3.13(a) of Sellers'
      Disclosure Schedule assigning and transferring all Intellectual Property
      necessary for the operation of the Acquired Companies as presently
      conducted and as presently proposed to be conducted. Each material item of
      Intellectual Property owned or used by an Acquired Company as of the date
      of this Agreement will be owned or available for use by the Acquired
      Company on substantially identical terms immediately subsequent to the
      Closing without the requirement of obtaining any third party consents.
      Each Acquired Company has taken all necessary and reasonable actions
      within its control to maintain and protect each item of Intellectual
      Property that it owns or uses.

      (b) No Acquired Company has interfered with, infringed upon,
      misappropriated or otherwise Contravened any intellectual property rights
      of third parties, and no Acquired Company has received any notice or other
      communication (whether oral or written) regarding any actual, alleged or
      potential such interference, infringement, misappropriation or
      Contravention. To Sellers' best Knowledge, no event has occurred or
      circumstance exists that may (with or without notice or lapse of time)
      constitute or result, nor will the continued operation of the Acquired
      Companies after the Closing as presently conducted and as presently
      proposed to be conducted constitute or result, directly or indirectly, in
      any such interference, infringement, misappropriation or Contravention. To
      Sellers' best Knowledge, no third party has interfered with, infringed
      upon, misappropriated or otherwise Contravened any Intellectual Property
      rights of any Acquired Company.

      (c) Section 3.13(c) of Sellers' Disclosure Schedule identifies each issued
      patent and each registered trademark, service mark and copyright owned by
      an Acquired Company and identifies each pending application or application
      for registration that has been made with respect to any Intellectual
      Property owned by an Acquired Company. Sellers have delivered to Buyer
      true and complete copies of all such patents, registrations and
      applications, each as amended to date, and has made available to Buyer
      true and complete copies of all other written documentation evidencing
      ownership and prosecution of each such item. With respect to each item of
      Intellectual Property required to be identified in Section 3.13(c) of
      Sellers' Disclosure Schedule:

            (i) an Acquired Company possesses all right, title and interest in
      and to the item, free and clear of any Encumbrances;

            (ii) the item is not subject to any outstanding Order;

            (iii) no Proceeding is pending or, to Sellers' best Knowledge,
      threatened, which challenges the legality, validity, enforceability, use
      or ownership of the item, and no event has occurred or circumstance exists
      that may give rise to such a challenge; and

            (iv) no Acquired Company has agreed to indemnify any Person for or
      against any interference, infringement, misappropriation or other
      Contravention with respect to the item.

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      (d) With respect to each Company Contract required to be identified in
      Section 3.14(a)(vi) of Sellers' Disclosure Schedule pursuant to which an
      Acquired Company uses Intellectual Property owned by a third party:

            (i) the underlying item of Intellectual Property is not subject to
      any Order;

            (ii) no Proceeding is pending or, to Sellers' best Knowledge,
      threatened, which challenges the legality, validity, enforceability, use
      or ownership of the underlying item of Intellectual Property, and to
      Sellers' best Knowledge, no event has occurred or circumstance exists that
      may give rise to such a challenge;

            (iii) with respect to such Company Contracts under which an Acquired
      Company is a sublicensee, the representations and warranties set forth in
      Sections 3.2(c), 3.14(c) and 3.14(d) are, to Sellers' best Knowledge, true
      and correct with respect to the underlying license; and

            (iv) no Acquired Company has granted any sublicense or similar right
      with respect to any such Company Contracts.

3.14  CONTRACTS; NO DEFAULTS{TC}

      (a) Section 3.14(a) of Sellers' Disclosure Schedule contains an accurate
      and complete list of:

            (i) each Company Contract that involves performance of services or
      delivery of goods or materials by one or more Acquired Companies of an
      amount or value in excess of $25,000;

            (ii) each Company Contract that involves performance of services or
      delivery of goods or materials to one or more Acquired Companies of an
      amount or value in excess of $25,000;

            (iii) each distribution or sales Contract entered into by the
      Company with third parties that cannot be terminated by the Company upon
      giving 30 days notice and without liability on the part of the Company;

            (iv) each Company Contract that was not entered into in the Ordinary
      Course of Business and that involves the expenditure or receipt by one or
      more Acquired Companies of an amount or value in excess of $25,000;

            (v) each Company Contract that is a (A) mortgage, indenture, note,
      installment obligation or other instrument relating to the borrowing of
      money, (B) letter of credit, bond or other indemnity (including letters of
      credit, bonds or other indemnities as to which an Acquired Company is the
      beneficiary but excluding endorsements of instruments for collection in
      the Ordinary Course of Business) or (C) currency or interest rate swap,
      collar or hedge agreement;

            (vi) each Company Contract affecting the ownership of, leasing of,
      title to, use of, or any other interest in any real or personal property
      (except personal property leases and installment and conditional sales
      agreements having (A) a value per item or aggregate payments of less than
      $25,000 and (B) a term of less than one year);

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<PAGE>

            (vii) each Company Contract with respect to Intellectual Property
      (including Contracts with current or former employees, consultants or
      contractors regarding the appropriation or the non-disclosure of any of
      the Intellectual Property) except for any license implied by the sale of a
      product and perpetual, paid-up licenses for commonly available software
      programs with a value of less than $1,000 under which an Acquired Company
      is the licensee, and the list identifies those pursuant to which an
      Acquired Company uses Intellectual Property owned by a third party;

            (viii) each Company Contract with any labor union or other employee
      representative of a group of employees;

            (ix) each Company Contract other than Company Plans involving a
      sharing of profits, losses, costs or Liabilities by an Acquired Company
      with any other Person;

            (x) each Company Contract containing covenants that in any way
      purport to restrict the business activity of an Acquired Company or limit
      the freedom of an Acquired Company to engage in any line of business or to
      compete with any Person;

            (xi) each Company Contract providing for payments to or by any
      Person based on or determined by reference to sales, purchases or profits,
      other than direct payments for goods;

            (xii) each power of attorney that is currently effective and
      outstanding;

            (xiii) each Company Contract entered into other than in the Ordinary
      Course of Business that contains or provides for an express undertaking by
      an Acquired Company to be responsible for consequential damages;

            (xiv) each Company Contract for capital expenditures in excess of
      $25,000; and

            (xv) each written warranty, guaranty or other similar undertaking
      with respect to contractual performance extended by an Acquired Company
      other than in the Ordinary Course of Business.

      (b) Sellers have delivered to Buyer a true and complete copy (in the case
      of each written Company Contract) or an accurate written summary (in the
      case of each oral Company Contract) of each of the Company Contracts
      listed on Section 3.14(a) of Sellers' Disclosure Schedule.

      (c) Each Company Contract required to be listed in Section 3.14(a) of the
      Sellers' Disclosure Schedule is in full force and effect and is valid and
      enforceable in accordance with its terms. Neither an Acquired Company nor
      any other party to a Company Contract has Contravened any of the
      applicable terms of a Company Contract. No event has occurred or
      circumstance exists that (with or without notice or lapse of time) may
      constitute or result directly or indirectly in Contravention of any
      Company Contract. No Acquired Company has given or received notice or
      other communication (written or oral) regarding any actual, alleged or
      potential Contravention of any Company Contract.

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<PAGE>

      (d) No party to a Company Contract required to be listed in Section
      3.14(a) of the Sellers' Disclosure Schedule has repudiated any provision
      of it. There currently are no renegotiations of, attempts to renegotiate
      or outstanding rights to renegotiate any Company Contracts required to be
      listed in Section 3.14(a) of the Sellers' Disclosure Schedule, nor has any
      written demand for renegotiation been made. Sellers have no Knowledge that
      any party to a Company Contract required to be listed in Section 3.14(a)
      of the Sellers' Disclosure Schedule does not intend to renew it.

3.15  CUSTOMERS AND SUPPLIERS{TC}

Section 3.15 of Sellers' Disclosure Schedule lists the names and addresses of
the 10 largest customers and the 10 largest suppliers (measured in each case by
dollar volume of purchases or sales during the year ended 2001) of the Acquired
Companies, taken as a whole, and the dollar amount of purchases or sales which
each such customer or supplier represented during the years ended 2000 and 2001,
respectively. There exists no actual, and Sellers have no Knowledge of any
threatened, termination, cancellation or material limitation of, or any material
change in, the business relationship of any Acquired Company with any customer,
supplier, group of customers or group of suppliers listed in Section 3.15 of
Sellers' Disclosure Schedule. No customer of any Acquired Company has any right
to any credit or refund for products sold or services rendered or to be rendered
by the Acquired Company pursuant to any Contract, understanding or practice of
the Acquired Company other than pursuant to the standard return policy of the
Acquired Companies described in Section 3.15 of Sellers' Disclosure Schedule.

3.16  INSURANCE{TC}

Each Acquired Company maintains in full force and effect insurance policies
covering its insurable business risks and Liabilities, which, to Sellers' best
Knowledge, provide reasonable protection for the business of and the properties
owned and used by the Acquired Company. Section 3.16 of Sellers' Disclosure
Schedule contains a list and brief description of each (a) insurance policy
issued to an Acquired Company as a "named insured" or otherwise providing
insurance to an Acquired Company as an insured party or additional insured
party, or on any other basis, that was in effect at any time within the past
five years and (b) self-insurance program, retrospective premium program or
captive insurance program in which an Acquired Company has participated at any
time during the past five years. For each such insurance policy, Section 3.16 of
Sellers' Disclosure Schedule sets forth the type of coverage provided by the
policy, whether the policy is provided on a primary, excess, excess umbrella or
other basis, the identity of the named insured, the policy number, the name and
address of the insurance carrier, the annual premium, the policy period and the
policy liability limits (including any deductible or self-insured retention and,
if known, the remaining, intact, unexhausted liability limits). Section 3.16 of
Sellers' Disclosure Schedule also contains a list and brief description of all
circumstances, potential claims, claims, damages, injuries, occurrences, losses
and lawsuits for which an Acquired Company, or any Person on its behalf, has
provided notice to any insurer or otherwise sought coverage under any insurance
policy or program identified in Section 3.16 of Sellers' Disclosure Schedule
(including settled and outstanding claims) since April 30, 1996. The Acquired
Companies have complied with each such insurance policy and program and have not
failed to give any notice or present any claim thereunder in a due and timely
manner which failure would reasonably

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be expected to result in a loss or forfeiture of any material right thereunder.
No insurance policy held by any Acquired Company is cancelable with less than 30
days written notice.

3.17  TAXES{TC}

      (a) The Acquired Companies have filed (or have had filed on their behalf)
      on a timely basis all Tax Returns as required by applicable Laws. Each
      such Tax Return is accurate and complete in all respects. All Taxes shown
      as due and owing on all such Tax Returns have been paid. Except as
      otherwise provided for in Section 3.17(a) of Sellers' Disclosure Schedule,
      the Acquired Companies have not requested an extension of time within
      which to file any Tax Return which has not since been filed.

      (b) The Acquired Companies have and will have no additional Liability for
      Taxes with respect to any Tax Return which was required by applicable Laws
      to be filed on or before the Closing Date, other than those reflected as
      liabilities on the Balance Sheet. The amounts reflected as liabilities on
      the Balance Sheet for all Taxes are adequate to cover all unpaid
      Liabilities for all Taxes, whether or not disputed, that have accrued with
      respect to or are applicable to the period ended on and including the
      Closing Date or to any years and periods prior thereto and for which any
      Acquired Company may be directly or contingently liable in its own right
      or as a transferee of the assets of, or successor to, any Person.

      (c) No federal, state, local or foreign audits or other Proceedings exist
      with regard to any Taxes or Tax Returns of any Acquired Company. None of
      the Acquired Companies have received any written notice that an audit or
      other Proceeding is pending or threatened with respect to any Taxes due
      from or with respect to any Acquired Company or any Tax Return filed by or
      with respect to any Acquired Company. The Acquired Companies have not
      granted or been requested to grant any waiver of any statutes of
      limitations applicable to any claim for Taxes.

      (d) All Tax deficiencies that have been claimed, proposed or asserted in
      writing against any Acquired Company have been fully paid or finally
      settled, and no issue has been raised in writing in any examination which
      could be expected to result in the proposal or assertion of a Tax
      deficiency for any other year not so examined.

      (e) No written position has been taken on any Tax Return with respect to
      the business or operations of any Acquired Company for a taxable year for
      which the statute of limitations for the assessment of any Taxes with
      respect thereto has not expired that is contrary to any publicly announced
      position of a taxing authority or that is substantially similar to any
      position which a taxing authority has successfully challenged in the
      course of an examination of a Tax Return of any Acquired Company.

      (f) All Taxes that each Acquired Company is required by Law to withhold or
      collect, including sales and use Taxes and amounts required to be withheld
      for Taxes of employees, have been duly withheld or collected and, to the
      extent required, have been paid over to the proper taxing authority or are
      held in separate bank accounts for such purpose.

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      (g) None of the Acquired Companies is or has been a United States real
      property holding corporation (as defined in Code Section 897(c)(2)) during
      the applicable period specified in Code Section 897(c)(1)(A)(ii).

      (h) There are no Encumbrances upon any properties or assets of any
      Acquired Company arising from any failure or alleged failure to pay any
      Tax (other than Encumbrances relating to Taxes not yet due and payable).

      (i) No Acquired Company has made or become obligated to make, and no
      Acquired Company will as a result of any Contemplated Transaction become
      obligated to make, any payments that could be nondeductible by reason of
      Section 280G (without regard to subsection (b)(4) thereof) or 162(m) of
      the Code, nor will any Acquired Company be required to "gross up" or
      otherwise compensate any individual because of the imposition of any
      excise tax on such a payment to the individual.

3.18  EMPLOYEE BENEFITS{TC}

      (a) Section 3.18(a) of Sellers' Disclosure Schedule contains an accurate
      and complete list of all Company Plans and material Other Benefit
      Obligations and sets forth the financial cost of all obligations owed
      under any Company Plan or material Other Benefit Obligation that is not
      subject to the disclosure and reporting requirements of ERISA. Except for
      the Company, no other Acquired Company has adopted or implemented any Plan
      or Other Benefit Obligation.

      (b) Sellers have delivered to Buyer (i) all documents that set forth the
      terms of each Company Plan or material Other Benefit Obligation, and of
      any related trust, including all summary plan descriptions, summaries and
      descriptions furnished to participants and beneficiaries, (ii) all
      personnel, payroll and employment manuals and policies of each Acquired
      Company, (iii) a written description of any Company Plan or material Other
      Benefit Obligation that is not otherwise in writing, (iv) all registration
      statements filed with respect to any Company Plan, (v) all insurance
      policies purchased by or to provide benefits under any Company Plan, (vi)
      all reports submitted since April 30, 1998, by third-party administrators,
      actuaries, investment managers, trustees, consultants or other independent
      contractors with respect to any Company Plan or Other Benefit Obligation,
      (vii) the Form 5500 filed in each of the most recent three plan years with
      respect to each Company Plan and Other Benefit Obligation, including all
      schedules thereto and the opinions of independent accountants, (viii) all
      notices that were given by any Acquired Company, any ERISA Affiliate or
      any Company Plan to the IRS or any participant or beneficiary, pursuant to
      statute, since April 30, 1998, including notices that are expressly
      mentioned elsewhere in this Section, (ix) all notices that were given by
      the IRS or the Department of Labor to any Acquired Company, any ERISA
      Affiliate or any Company Plan since April 30, 1998, and (x) with respect
      to Company Plans, the most recent determination letter for each such Plan.

      (c) The Acquired Companies have performed all of their obligations under
      all Company Plans and with respect to all Other Benefit Obligations. The
      Acquired Companies have made appropriate entries in their financial
      records and statements for all obligations and liabilities under the
      Company Plans and Other Benefit Obligations

                                       71
<PAGE>

      that have accrued but are not due. The Acquired Companies, with respect to
      all Company Plans and Other Benefit Obligations, are and each Company Plan
      and Other Benefit Obligation is in material compliance with ERISA, the
      Code and other applicable Laws, including the provisions of such Laws
      expressly mentioned in this Section, and with any applicable collective
      bargaining agreement. No transaction prohibited by ERISA Section 406 and
      no "prohibited transaction" under Code Section 4975(c) has occurred with
      respect to any Company Plan. Neither any Acquired Company nor any Seller
      has any Liability to the IRS with respect to any Plan, including any
      Liability imposed by Chapter 43 of the Code. All contributions and
      payments made or accrued with respect to all Company Plans and Other
      Benefit Obligations are deductible under Code Sections 162 or 404. No
      event has occurred or circumstance exists that may result in (i) a
      material increase in premium costs of Company Plans and Other Benefit
      Obligations that are insured or (ii) a material increase in benefit costs
      of Company Plans and Other Benefit Obligations that are self-insured.
      Other than routine claims for benefits submitted by participants or
      beneficiaries, no claim against, or Proceeding involving, any Company Plan
      or Other Benefit Obligation is pending or, to Sellers' Knowledge, is
      threatened.

      (d) Each Qualified Plan of each Acquired Company has received a favorable
      determination letter from the IRS that it is qualified under Code Section
      401(a) and that its related trust is exempt from federal income tax under
      Code Section 501(a), and each such Plan complies in form and in operation
      with the requirements of the Code and meets the requirements of a
      "qualified plan" under Section 401(a) of the Code. No event has occurred
      or circumstance exists that may give rise to disqualification or loss of
      tax-exempt status of any such Plan or trust. There is no unfunded
      liability under any Company Plan.

      (e) No Acquired Company or any ERISA Affiliate has ever established,
      maintained or contributed to, or had an obligation to maintain or
      contribute to, any Plan that is subject to Title IV of ERISA. No Acquired
      Company has ever established, maintained or contributed to, or had an
      obligation to maintain or contribute to, any voluntary employees'
      beneficiary association under Code Section 501(c)(9), any organization or
      trust described in Code Section 501(c)(17) or 501(c)(20), or any welfare
      benefit fund as defined in Code Section 419(e). No Acquired Company or any
      ERISA Affiliate has ever established, maintained, contributed to or
      otherwise participated in, or had an obligation to maintain, contribute to
      or otherwise participate in, any Multiemployer Plan. Except to the extent
      required under ERISA Section 601 et seq. and Code Section 4980B, no
      Acquired Company provides health or welfare benefits for any retired or
      former employee nor is any Acquired Company obligated to provide health or
      welfare benefits to any active employee following such employee's
      retirement or other termination of service.

      (f) Each Acquired Company has the right to modify and terminate benefits
      to retirees (other than pensions) with respect to both retired and active
      employees. Sellers and all Acquired Companies have complied with the
      provisions of ERISA Section 601 et seq. and Code Section 4980B and with
      the provisions of ERISA Section 701 et seq. and Subtitle K of the Code.

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      (g) The consummation of the Contemplated Transactions will not result in
      the payment, vesting or acceleration of any benefit under or in connection
      with any Company Plan or Other Benefit Obligation.

3.19  EMPLOYEE RESTRICTIONS{TC}

No director, employee or officer, or to Sellers' best Knowledge, agent,
consultant or contractor of any Acquired Company is a party to, or is otherwise
bound by, any Contract, including any confidentiality, noncompetition or
proprietary rights agreement, with any other Person that in any way adversely
affects or will affect (a) the performance of his or her duties for the Acquired
Companies, (b) his or her ability to assign to an Acquired Company rights to any
invention, improvement, discovery or information relating to the business of the
Acquired Companies, or (c) the ability of the Acquired Companies to conduct
their business. To Sellers' Knowledge, no key employee or group of employees of
the Acquired Companies intends to terminate his/her or their employment with an
Acquired Company within the next 2 years.

3.20  LABOR RELATIONS; EMPLOYMENT LAW COMPLIANCE{TC}

      (a) Each Acquired Company has complied in all material respects with all
      Laws relating to employment practices, terms and conditions of employment,
      equal employment opportunity, nondiscrimination, immigration, wages,
      hours, benefits, collective bargaining and plant closing. Section 3.20 of
      Sellers' Disclosure Schedule contains a list of all employees of the
      Acquired Companies who are not U.S. citizens or permanent residents. Each
      of the employees listed on that schedule is authorized under U.S.
      immigration laws to work in his or her current position for the Acquired
      Company that is his or her employer. Except for the work authorizations
      specified in Section 3.20 of Sellers' Disclosure Schedule opposite the
      employee's name, none of such employees requires authorization from any
      Governmental Body to be employed in his or her current position by the
      Acquired Company that is his or her employer. No Acquired Company is
      liable for the payment of any fines, penalties or other amounts, however
      designated, for failure to comply with any of the foregoing Laws.

      (b) No Acquired Company has been, or is now, a party to any collective
      bargaining agreement or other labor Contract. No application or petition
      is pending for an election of or for certification of a collective
      bargaining agent representing any Acquired Company's employees.

      (c) Since 1996, there has not been, there is not presently pending or
      existing, and to Sellers' Knowledge there is not threatened, any strike,
      slowdown, picketing, employee grievance process or other work stoppage or
      labor dispute involving an Acquired Company or its Facilities. No event
      has occurred or circumstance exists that may provide the basis for any
      such work stoppage or labor dispute. There is no lockout of any employees
      by an Acquired Company, and no Acquired Company contemplates such action.

      (d) There is not pending or, to Sellers' Knowledge, threatened any
      Proceeding against or affecting any Acquired Company relating to the
      alleged violation of any Law pertaining to labor relations or employment
      matters. No grievance or arbitration

                                       73
<PAGE>

      Proceeding exists that might have an adverse effect upon an Acquired
      Company or the conduct of its business. There has been no charge of
      discrimination filed against or, to Sellers' Knowledge, threatened against
      an Acquired Company with the Equal Employment Opportunity Commission or
      similar Governmental Body.

3.21  ENVIRONMENTAL, HEALTH AND SAFETY MATTERS

      (a) Section 3.21 of Sellers' Disclosure Schedule lists all permits held by
      each of the Acquired Companies required under Environmental Law and
      Occupational Safety and Health Law. Each Acquired Company is, and at all
      times has been, in material compliance with, and has not been and is not
      in material Contravention of or liable under, any Environmental Law or
      Occupational Safety and Health Law or any permit issued thereunder.
      Neither any Seller nor any Acquired Company has any basis to expect, nor
      has any of them or any other Person for whose conduct they are or may be
      held responsible received, any actual or threatened Order, notice or other
      communication from (i) any Governmental Body or other Person acting in the
      public interest, or (ii) the current or prior owner or operator of any
      Facility, of any actual or potential violation or failure to comply with
      any Environmental Law, or of any actual or threatened obligation to
      undertake or bear the cost of any Environmental, Health and Safety
      Liabilities with respect to any Facility or other property or asset
      (whether real, personal or mixed) in which any Seller or Acquired Company
      has had an interest, or with respect to any property or Facility at or to
      which Hazardous Materials were generated, manufactured, refined,
      transferred, imported, used or processed by Sellers, any Acquired Company,
      or any other Person for whose conduct they are or may be held responsible,
      or from which Hazardous Materials have been transported, treated, stored,
      handled, transferred, disposed, recycled or received.

      (b) There are no pending or, to Sellers' best Knowledge, threatened,
      claims, Encumbrances or other restrictions of any nature, resulting from
      any Environmental, Health and Safety Liabilities or arising under any
      Environmental Law or Occupational Safety and Health Law, with respect to
      or affecting any Facilities or any other properties and assets (whether
      real, personal or mixed) in which any Seller or Acquired Company has or
      had an interest.

      (c) Sellers have no Knowledge of or any basis to expect, nor has any of
      them or any other Person for whose conduct they are or may be held
      responsible, received, any citation, directive, inquiry, notice, Order,
      summons, warning or other communication (i) that relates to Hazardous
      Activity, Hazardous Materials or any actual, alleged or potential
      Contravention of or failure to comply with any Environmental Law or
      Occupational Safety and Health Law, or (ii) of any actual, alleged or
      potential obligation to undertake or bear the cost of any Environmental,
      Health and Safety Liabilities with respect to any Facility or other
      property or asset (whether real, personal or mixed) in which any Seller or
      Acquired Company had an interest, or with respect to any property or
      facility to or by which Hazardous Materials generated, manufactured,
      refined, transferred, imported, used or processed by any Seller, Acquired
      Company, or other Person for whose conduct they are or may be held
      responsible, have been transported, treated, stored, handled, transferred,
      disposed, recycled or received.

                                       74
<PAGE>

      (d) Neither any Seller nor any Acquired Company, nor any other Person for
      whose conduct they are or may be held responsible, has any Environmental,
      Health and Safety Liabilities with respect to any Facility or with respect
      to any other property or asset (whether real, personal or mixed) in which
      any Seller or Acquired Company (or any predecessor), has or had an
      interest, or at any property geologically or hydrologically adjoining any
      Facility or any such other property or asset.

      (e) There are no Hazardous Materials present on or in the Environment at
      any Facility or, to Sellers' best Knowledge, at any geologically or
      hydrologically adjoining property, including any Hazardous Materials
      contained in barrels, above or underground storage tanks, landfills, land
      deposits, dumps, equipment (whether moveable or fixed) or other
      containers, either temporary or permanent, and deposited or located in
      land, water, sumps or any other part of any Facility or, to Sellers' best
      Knowledge, such adjoining property, or incorporated into any structure
      therein or thereon. None of Sellers, any Acquired Company, any other
      Person for whose conduct they are or may be held responsible, or any other
      Person has permitted or conducted, or is aware of, any Hazardous Activity
      conducted with respect to any Facility or other property or asset (whether
      real, personal or mixed) in which any Seller or Acquired Company has or
      had an interest except in material compliance with applicable Laws.

      (f) There has been no Release or, to Sellers' best Knowledge, threat of
      Release, of any Hazardous Materials at or from any Facility or at any
      other location where any Hazardous Materials were generated, manufactured,
      refined, transferred, produced, imported, used or processed from or by any
      Facility, or from any other property or asset (whether real, personal or
      mixed) in which any Seller or Acquired Company has or had an interest, or,
      to Sellers' best Knowledge, any geologically or hydrologically adjoining
      property, whether by any Seller, Acquired Company or, to Sellers' best
      Knowledge, any other Person.

      (g) Sellers have delivered to Buyer true and complete copies and results
      of any and all reports, studies, analyses, tests or monitoring possessed
      or initiated by any Seller or Acquired Company pertaining to Hazardous
      Materials or Hazardous Activities in, on or under any Facilities, or
      concerning compliance by any Seller, Acquired Company or any other Person
      for whose conduct they are or may be held responsible, with Environmental
      Laws.

      (h) There has not been any closing, termination or transfer, and the
      Contemplated Transactions do not constitute a closing, termination or
      transfer, of an Acquired Company or the Real Property necessitating
      compliance with the Industrial Site Recovery Act or its predecessor, the
      Environmental Cleanup Responsibility Act, or any other relevant Law.

3.22  COMPLIANCE WITH LAWS; GOVERNMENTAL AUTHORIZATIONS{TC}

      (a) Each Acquired Company is, and at all times since April 30, 1996 has
      been, in material compliance with each Law that is or was applicable to it
      or to the conduct of its business or the ownership or use of any of its
      assets. To Sellers' best Knowledge, no event has occurred or circumstance
      exists that (with or without notice or lapse of

                                       75
<PAGE>

      time) may cause an Acquired Company to Contravene any Law or may give rise
      to any obligation on the part of an Acquired Company to undertake, or to
      bear all or any portion of the cost of (including but not limited to any
      penalty or fine), any remedial action of any nature. No Acquired Company
      has received at any time since April 30, 1996 any notice or other
      communication (whether oral or written) from any Governmental Body or any
      other Person regarding any actual, alleged or potential Contravention of
      any Law or any actual, alleged or potential obligation on the part of an
      Acquired Company to undertake, or to bear all or any portion of the cost
      of (including but not limited to any penalty or fine), any remedial action
      of any nature.

      (b) Section 3.22(b) of Sellers' Disclosure Schedule contains an accurate
      and complete list of each Governmental Authorization that is held by each
      Acquired Company or that otherwise relates to the business of, or to any
      of the assets owned or used by, an Acquired Company, all of which are
      valid and in full force and effect and will remain so following the
      Closing. Each Acquired Company is, and at all times since April 30, 1996
      has been, in material compliance with all of the terms and requirements of
      each such Governmental Authorization. To Sellers' best Knowledge, no event
      has occurred or circumstance exists that may (with or without notice or
      lapse of time) constitute or result directly or indirectly in
      Contravention of any Governmental Authorization. No Acquired Company has
      received at any time since April 30, 1996 any notice or other
      communication (whether oral or written) from any Governmental Body or any
      other Person regarding any actual, alleged or potential Contravention of
      any Governmental Authorization. All applications required to have been
      filed for the renewal of such Governmental Authorizations have been duly
      filed on a timely basis with the appropriate Governmental Bodies, and all
      other filings required to have been made with respect to such Governmental
      Authorizations have been duly made on a timely basis with the appropriate
      Governmental Bodies. All such Governmental Authorizations are renewable by
      their terms or in the Ordinary Course of Business without the need to
      comply with any special qualification procedures or to pay any amounts
      other than routine fees or similar charges.

      (c) The Governmental Authorizations listed in Section 3.22(b) of Sellers'
      Disclosure Schedule collectively constitute all of the Governmental
      Authorizations necessary to permit the Acquired Companies to conduct their
      businesses lawfully in the manner in which they currently conduct such
      businesses and to permit the Acquired Companies to own and use their
      assets in the manner in which they own and use such assets currently.

      (d) No Acquired Company nor any Representative of an Acquired Company has,
      to obtain or retain business, directly or indirectly offered, paid, or
      promised to pay, or authorized the payment of, any money or other thing of
      value (including any fee, gift, sample, travel expense or entertainment
      with a value in excess of $100 in the aggregate to any one individual in
      any year) to (i) any Person who is an official, officer, agent employee or
      representative of any Government Body, or any existing or prospective
      customer (whether government-owned or non-government-owned), (ii) any
      political party or official thereof, (iii) any candidate for political or
      political party office, or (iv) any other individual or entity; while
      knowing or having reason to believe that all or any portion of such money
      or thing of value would be offered, given, or promised, directly or
      indirectly, to any such official, officer, agent,

                                       76
<PAGE>

      employee, representative, political party, political party official,
      candidate, individual or any entity affiliated with such customer,
      political party or official, or political office.

      (e) Each Acquired Company has made all payments to third parties by check
      mailed to such third parties' principal place of business or by wire
      transfer to a bank located in the same jurisdiction as such party's
      principal place of business.

      (f) Each material transaction is properly and accurately recorded on the
      books and records of the appropriate Acquired Company, and each document
      on which entries in the Acquired Companies' books and records are based is
      accurate and complete in all respects.

      (g) Section 3.22(g) of Sellers' Disclosure Schedule lists all foreign
      transactions engaged in by each of the Acquired Companies. Each Acquired
      Company has at all times complied with all Laws relating to export
      controls and trade sanctions. No product sold or service provided by an
      Acquired Company since April 30, 1996, has been, directly or indirectly,
      sold to or performed on behalf of Afghanistan, Cuba, Iraq, Iran, Libya,
      Myanmar (Burma), Sudan, Syria, North Korea or Yugoslavia.

      (h) Since April 30, 1996, no Acquired Company has been a party to or a
      beneficiary under any Contract under which a product has been sold or
      services provided to customers in Bahrain, Iraq, Kuwait, Jordan, Lebanon,
      Libya, Oman, Qatar, Saudi Arabia, Sudan, Syria, United Arab Emirates or
      the Republic of Yemen.

3.23  LEGAL PROCEEDINGS; ORDERS{TC}

      (a) Section 3.23(a) of Sellers' Disclosure Schedule lists any and all
      pending Proceedings (i) by or against any Acquired Company or that
      otherwise relate to or may affect the business of, or any of the assets
      owned or used by, any Acquired Company or (ii) that challenge, or that may
      have the effect of preventing, delaying, making illegal or otherwise
      interfering with, any of the Contemplated Transactions. To Sellers'
      Knowledge, no other such Proceeding has been threatened. Sellers have
      delivered to Buyer copies of all pleadings, correspondence and other
      documents relating to such Proceedings. Such Proceedings will not, in the
      aggregate, have a material adverse effect on the financial or other
      condition, results of operations, assets, Liabilities, equity, business or
      prospects of any Acquired Company.

      (b) Section 3.23(b) of Sellers' Disclosure Schedule lists each Order to
      which any Acquired Company, or any of the assets owned or used by any
      Acquired Company , is or has been subject. To Sellers' Knowledge, no
      officer, director, agent or employee of any Acquired Company is subject to
      any Order that prohibits such officer, director, agent or employee from
      engaging in or continuing any conduct, activity or practice relating to
      the business of any Acquired Company.

      (c) Each Acquired Company is, and at all times since April 30, 1996 has
      been, in full compliance with all of the terms and requirements of each
      Order to which it, or any of the assets owned or used by it, is or has
      been subject. No event has occurred or circumstance exists that may
      constitute or result in (with or without notice or lapse of time) a
      violation of or failure to comply with any term or requirement of any
      Order to

                                       77
<PAGE>

      which any Acquired Company, or any of the assets owned or used by any
      Acquired Company, is subject. No Acquired Company has received, at any
      time since April 30, 1996, any notice or other communication (whether oral
      or written) from any Governmental Body or any other Person regarding any
      actual, alleged or potential violation of, or failure to comply with, any
      term or requirement of any Order to which any Acquired Company, or any of
      the assets owned or used by any Acquired Company, is or has been subject.

3.24  RELATIONSHIPS WITH RELATED PERSONS{TC}

Except as provided for in Section 3.24 of Sellers' Disclosure Schedule, no
Seller or any Related Person of any Seller or Acquired Company has, or since May
1, 1999 has had, any interest in any property (whether real, personal or mixed
and whether tangible or intangible), used in or pertaining to any Acquired
Company's business. No Seller nor any Related Person of any Seller or Acquired
Company owns, or since May 1, 1999 has owned, (of record or as a beneficial
owner) an equity interest or any other financial or profit interest in a Person
that has (a) had business dealings or a material financial interest in any
transaction with an Acquired Company, or (b) engaged in competition with an
Acquired Company with respect to any line of the products or services of the
Acquired Company in any market presently served by the Acquired Company except
for less than 1% of the outstanding capital stock of any competing business that
is publicly traded on any recognized exchange or in the over-the-counter market.
No Seller or any Related Person of any Seller or Acquired Company is a party to
any Contract with, or has any claim or right against, an Acquired Company.

3.25  SECURITIES LAW MATTERS{TC}

Sellers are acquiring the Promissory Notes for their own account and not with a
view to distribution within the meaning of Section 2(11) of the Securities Act.
Sellers confirm that Buyer has made available to Sellers and their
Representatives the opportunity to ask questions of the officers and management
employees of Buyer and to acquire such additional information about the business
and financial condition of Buyer as Sellers have requested, and all such
information has been received.

3.26  BROKERS OR FINDERS{TC}

Except as listed in Section 3.26 of Sellers' Disclosure Schedule, neither
Sellers, the Company nor any of their respective Representatives have incurred
any Liability for brokerage or finders' fees or agents' commissions or other
similar payment in connection with the Contemplated Transactions.

3.27  DISCLOSURE{TC}

No representation or warranty of Sellers in this Agreement and no statement in
Sellers' Disclosure Schedule omits to state a material fact necessary to make
the statements herein or therein, in light of the circumstances in which they
were made, not misleading. Nothing in Sellers' Disclosure Schedule contains any
untrue statement or omits to state a material fact necessary to make the
statements therein or in this Agreement, in light of the circumstances in which
they were made, not misleading.

                                       78
<PAGE>

3.28  MATERIALITY{TC}

Any representation and warranty of the Sellers in this Agreement qualified by
materiality shall also include any respective immaterial events, provided that,
those immaterial events, taken in the aggregate, constitute a material event for
that representation and warranty.

               [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       79
<PAGE>

                                   SCHEDULE 9

                               PERSONAL GUARANTEES

Personal Guarantees in relation to the following loan agreements and security:

1.    Rizal Commercial Banking Corporation

      (a)   Comprehensive Surety Agreement dated 20 September 2000 between
            Renato Marfori Tanseco and Rizal Commercial Banking Corporation.

      (b)   Real Estate Mortgage Agreement between Renato Marfori Tanseco and
            Rizal Commercial Banking Corporation covering Condominium
            Certificate of Title Nos. 58401, 58402, 58403, 58404, 58405, 58406,
            58407, 58408, 58409, 58420, 58421, 58422, 58423, 58424, 58425,
            58426, 58427, 58428, 58429, 58430, 58431, 58432, 58433, 58434,
            58436, 58437, 58438, 58440, 58562, 58564, 58565, 58566, 58568 and
            58571.

2.    Banco de Oro Universal Bank

      (a)   Continuing Surety Agreement dated 30 May 2001 between Solemar
            Development Corporation and Banco de Oro Universal Bank.

      (b)   Real Estate Mortgage Agreement between

            -     Solemar Development Corporation and Banco de Oro Universal
                  Bank covering Transfer Certificate of Title Nos. 44438 and
                  32596.

            -     Renato Marfori Tanseco (and family) and Banco de Oro Universal
                  Bank covering Transfer Certificate of Title No. 132902.

            -     Renato Marfori Tanseco (and family) and Banco de Oro Universal
                  Bank covering Condominium Certificate of Title Nos. 58435,
                  58439, 58553, 58563 and 58567.

      (c)   Assignment of leasehold contracts and Special Power of Attorney
            dated 31 May 2001 from Solemar Development Corporation to Banco de
            Oro Universal Bank.

3.    Bank of the Philippine Islands

      (a)   Comprehensive Surety Agreement dated 22 December 2000 between Renato
            Marfori Tanseco and Bank of the Philippine Islands.

                                       80
<PAGE>

                                   SCHEDULE 10

                             FORM OF PROMISSORY NOTE

                                 PROMISSORY NOTE

US $6,500,000                                                          Date: [-]

FOR VALUE RECEIVED, INFINITI SOLUTIONS PTE LTD, a company organized under the
laws of Singapore with its registered office at 5001 Beach Road #07-24 Golden
Mile Complex, Singapore 199588 (the "BORROWER"), promises to pay to AML TRADING
LIMITED, a company incorporated in the British Virgin Islands with International
Business Company Number 386647 whose registered office is at Beaufort House,
Tropic Isle Building, PO Box 438, Road Town, Tortola, British Virgin Islands
(the "HOLDER"), the principal sum of US$6,500,000 or such lesser amount as shall
then equal the outstanding principal amount hereof, together with interest from
the date of this promissory note (this "NOTE") on the unpaid principal balance
at the simple interest rate of 5% per annum (the "INTEREST RATE"). Interest
shall accrue and be computed on the basis of the actual number of days elapsed
in a 365 day year. The unpaid principal shall be payable in four installments
(collectively, the "INSTALLMENTS" and each, an "INSTALLMENT") and all unpaid
principal together with the balance of unpaid and accrued interest shall be due
and payable on the Maturity Date (as defined below) in respect of each
Installment, or when such amounts in respect of each Installment are declared
due and payable by the Holder upon or after the occurrence of an Event of
Default (as defined below). Capitalized terms not otherwise defined herein shall
have the meaning set forth in the Share Purchase Agreement dated [-] November
2002 (the "SHARE PURCHASE AGREEMENT") entered into by and among the Borrower,
Automated Technology (Phil.) Inc. ("ATEC"), Mayon Capital Limited, Gold Dawn
Limited, Global Crown Limited and Finetech International Limited (collectively
the "BVI COMPANIES") and the shareholders of the BVI Companies.

The following is a statement of the rights of the Holder and the conditions to
which this Note is subject, and to which the Holder hereof, by the acceptance of
this Note, agrees:

1.    Maturity Dates. The dates upon which the Installments, together with the
      balance of unpaid and accrued interest in relation to each Installment,
      shall be due and payable (collectively, the "MATURITY DATES" and each, a
      "MATURITY DATE") shall be as set out below:

<TABLE>
<CAPTION>
 Installment                           Maturity Date
 -----------                           -------------
<S>                           <C>
US$1,500,000                  180 days from the Completion Date

US$1,500,000                  365 days from the Completion Date

US$1,500,000                  540 days from the Completion Date

US$2,000,000                  730 days from the Completion Date
</TABLE>

                                       81
<PAGE>

      For the purposes of this Note, "COMPLETION DATE" shall have the meaning
      ascribed to it in the Share Purchase Agreement.

      In no event, however, shall any Maturity Date fall on a national holiday
      (in Singapore) or weekend, but instead such Maturity Date shall be the
      first business day following such national holiday or weekend.

2.    Events of Default. The occurrence of any of the following shall constitute
      an "EVENT OF DEFAULT" under this Note:

      (a)   Failure to Pay. The Borrower shall fail to pay, within thirty (30)
            days after the Maturity Date for the relevant Installment, any
            principal payment due in respect of that Installment, or any
            interest required under the terms of this Note in respect of that
            Installment; or

      (b)   Voluntary Bankruptcy or Insolvency Proceedings. The Borrower shall
            (i) be unable to pay its debts generally as they mature, (ii)
            commence a voluntary case or other proceeding seeking relief under
            any bankruptcy, insolvency or other similar law now or hereafter in
            effect or consent to any such relief or to the appointment of or
            taking possession of his property by any official in an involuntary
            case or other proceeding commenced against him, or (iii) take any
            action for the purpose of effecting any of the foregoing.

3.    Rights of the Holder Upon Event of Default under Clause 2(a). Upon the
      occurrence or existence of an Event of Default under Clause 2(a) above,
      the Borrower shall pay interest to the Holder at the rate of 10% per annum
      calculated based on the outstanding principal amount of the relevant
      Installment, for the period commencing on the Maturity Date for that
      relevant Installment and ending on the date of actual payment of the
      outstanding amount of such Installment. For the avoidance of doubt, such
      interest shall not apply to any Installments in respect of which the
      Borrower is not in default under Clause 2(a). These other Installments
      shall remain payable in accordance with the Maturity Dates in Clause 1.

4.    Rights of the Holder Upon Event of Default under Clause 2(b). Upon the
      occurrence or existence of an Event of Default under Clause 2(b) above,
      irrespective of whether or not Clause 2(a) also applies, then at any time
      thereafter during the continuance of such Event of Default, the Holder may
      declare all outstanding unpaid principal and accrued interest due under
      this Note (and not just any Installment), to be immediately due and
      payable.

5.    Rights of the Holder Upon Any Event of Default. In addition to the
      remedies under Clause 3 and 4 above, upon the occurrence or existence of
      any Event of Default, the Holder may exercise any other right, power or
      remedy granted to it or otherwise permitted to it by law, either by suit
      in equity or by action at law, or both.

6.    Prepayment. Each Installment of this Note may be prepaid in whole or in
      part at any time by the Borrower without penalty and without the prior
      written consent of the Holder.

                                       82
<PAGE>

7.    Successors and Assigns. The rights and obligations of the Borrower and the
      Holder of this Note shall be binding upon and benefit the successors,
      assigns, heirs, administrators and transferees of the parties.

8.    Waiver and Amendment. The provisions of this Note may not be modified,
      amended or waived except in a writing signed by both the Holder and the
      Borrower.

9.    Notices. Any notice, request or other communication required or permitted
      hereunder shall be in writing and shall be deemed to have been duly given
      if personally delivered or mailed by registered or certified mail, postage
      prepaid, or by recognized overnight courier or personal delivery at the
      respective addresses of the parties as set forth below such parties' name
      on the signature page hereto. Any party hereto may by notice so given
      change its address for future notice hereunder. Notice shall conclusively
      be deemed to have been received when delivered.

10.   Payments. Payments shall be made in lawful tender of the United States.

11.   Prevailing Party. In the event that litigation or quasi-judicial
      proceeding is commenced by the Borrower or the Holder with respect to the
      enforcement of any provisions hereof, the prevailing party shall be
      entitled to recover its costs and expenses, including reasonable
      attorneys' fees.

12.   Governing Law. This Note and all actions arising out of or in connection
      with this Note shall be governed by and construed in accordance with the
      laws of Singapore.

IN WITNESS WHEREOF, the Borrower has caused this Note to be issued as of the
date first written above.

                                     INFINITI SOLUTIONS PTE LTD

                                     By:_____________________________
                                         Name: Inderjit Singh
                                         Title:  CEO

                                     Address: 55, Ayer Rajah Crescent, #06-05
                                     Singapore 139949
                                     Phone: (65) 6778-4036
                                     Facsimile: (65) 6779-0053

                                       83
<PAGE>

Acknowledged and agreed:

_____________________________
By: Renato Marfori Tanseco
for and on behalf of
AML TRADING LIMITED

Address:
Phone:
Facsimile:

                                       84
<PAGE>

IN WITNESS WHEREOF THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES.

SIGNED by                            )              /s/ Inderjit Singh
         INDERJIT SINGH              )
for and on behalf of                 )
INFINITI SOLUTIONS PTE LTD           )
in the presence of:                  )

     /s/ ANDREW MARTIN
---------------------------------------
Name of witness:  ANDREW MARTIN

SIGNED by                            )              /s/ Antonio Bolosa Villaruel
         ANTONIO BOLOSA VILLARUEL    )
for and on behalf of                 )
AUTOMATED TECHNOLOGY                 )
(PHIL.) INC.                         )
in the presence of:                  )

    /s/ JOSE ANOTNIO LICHAUCO
---------------------------------------
Name of witness: Jose Anotnio Lichauco

SIGNED by                            )              /s/ Renato Marfori Tanseco
     RENATO MARFORI TANSECO          )
in the presence of:                  )

     /s/ JOSE ANOTNIO LICHAUCO
---------------------------------------
Name of witness: Jose Anotnio Lichauco

SIGNED by                            )              /s/ Renato Marfori Tanseco
         RENATO MARFORI TANSECO      )
for and on behalf of                 )
AML TRADING LIMITED                  )
in the presence of:                  )

/s/ JOSE ANOTNIO LICHAUCO
---------------------------------------
Name of witness: Jose Anotnio Lichauco

                                       85
<PAGE>

SIGNED by                            )              /s/ Renato Marfori Tanseco
RENATO MARFORI TANSECO               )
as attorney-in-fact                  )
for and on behalf of                 )
                                     )
ANTONIO BOGLOSA                      )
VILLARUEL                            )
                                     )
ALBERTO QUISUMBING                   )
VILLANUEVA                           )
                                     )
MILA SANTOS TANSECO                  )
                                     )
ORLANDO M. SAGUM                     )
                                     )
ROBERT THOMAS L. TOM                 )
                                     )
BENJAMIN JR DEL ROSARIO              )
                                     )
LUISITO BASISTER MANALO              )
                                     )
VERNIE BASCO FLAVIER                 )
                                     )
in the presence of:                  )

    /s/ CYNTHIA ROXAS DEL CASTILLO
---------------------------------------
Name of witness: CYNTHIA ROXAS DEL CASTILLO

SIGNED by RENATO MARFORI TANSECO                    /s/ Renato Marfori Tanseco
                                     )
for and on behalf of                 )
MAYON CAPITAL LIMITED                )
in the presence of:                  )

     /s/ JOSE ANOTNIO LICHAUCO
---------------------------------------
Name of witness:  Jose Anotnio Lichauco

SIGNED by RENATO MARFORI TANSECO                    /s/ Renato Marfori Tanseco
                                     )
for and on behalf of                 )
GLOBAL CROWN LIMITED                 )
in the presence of:                  )

     /s/ JOSE ANOTNIO LICHAUCO
---------------------------------------
Name of witness:  Jose Anotnio Lichauco

                                       86
<PAGE>

SIGNED by         RENATO MARFORI TANSECO            /s/ Renato Marfori Tanseco
                                     )
for and on behalf of                 )
GOLD DAWN LIMITED                    )
in the presence of:                  )

     /s/ JOSE ANOTNIO LICHAUCO
---------------------------------------
Name of witness:  Jose Anotnio Lichauco

SIGNED by RENATO MARFORI TANSECO     )              /s/ Renato Marfori Tanseco
                                     )
for and on behalf of                 )
FINETECH INTERNATIONAL               )
LIMITED                              )
in the presence of:                  )

     /s/ JOSE ANOTNIO LICHAUCO
---------------------------------------
Name of witness:  Jose Anotnio Lichauco

                                       87<PAGE>
                                                                    EXHIBIT 10.2

--------------------------------------------------------------------------------

                    TERM LOAN AND REVOLVING CREDIT AGREEMENT

                                     between

                              VIKO TECHNOLOGY, INC.

                                       and

                     THE DEVELOPMENT BANK OF SINGAPORE LTD.,

                               LOS ANGELES AGENCY

                               September 24, 2002

--------------------------------------------------------------------------------

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                             Page
<S>                                                                                          <C>
TERM LOAN AND REVOLVING CREDIT AGREEMENT...............................................        1

ARTICLE 1 INTERPRETATION...............................................................        1

      Section 1.1             Definitions..............................................        1

      Section 1.2             Accounting Terms.........................................        6

      Section 1.3             Interpretation...........................................        6

ARTICLE 2 AMOUNTS AND TERMS OF LOANS...................................................        7

      Section 2.1             Commitments..............................................        7

      Section 2.2             Making Loans.............................................        7

      Section 2.3             Repayment................................................        8

      Section 2.4             Interest.................................................        8

      Section 2.5             Prepayment...............................................        9

      Section 2.6             Fees.....................................................        9

      Section 2.7             Payments and Computations................................        9

      Section 2.8             Payment on Non-Business Days.............................       10

      Section 2.9             Increased Costs, Etc.....................................       10

      Section 2.10            Taxes....................................................       11

      Section 2.11            Voluntary Conversion of LIBOR Loan into Fixed Rate Loan..       11

      Section 2.12            Indemnity................................................       11

ARTICLE 3 CONDITIONS OF LENDING........................................................       12

      Section 3.1             Conditions Precedent to Initial Loan.....................       12

      Section 3.2             Conditions Precedent to Each Loan........................       13

ARTICLE 4 REPRESENTATIONS AND WARRANTIES...............................................       14

      Section 4.1             Organization and Good Standing...........................       14

      Section 4.2             No Conflict..............................................       14

      Section 4.3             Governmental Action......................................       14

      Section 4.4             Enforceability...........................................       14

      Section 4.5             Financial Statements.....................................       15

      Section 4.6             Legal Proceedings........................................       15

      Section 4.7             Payment of Taxes.........................................       15

      Section 4.8             Employee Benefit Plans...................................       15
</TABLE>

                                       -i-
<PAGE>

<TABLE>
<S>                                                                                           <C>
ARTICLE 5 COVENANTS OF BORROWER........................................................       15

      Section 5.1             Compliance with Governmental Rules, Etc..................       15

      Section 5.2             Financial and Other Information..........................       16

      Section 5.3             Insurance................................................       16

      Section 5.4             Preservation of Corporate Existence, Etc.................       16

      Section 5.5             Visitation Rights........................................       17

      Section 5.6             Maintenance of Properties................................       17

      Section 5.7             Liens, Etc...............................................       17

      Section 5.8             Mergers, Etc.............................................       17

      Section 5.9             Use of Proceeds..........................................       17

      Section 5.10            Maintenance of Net Worth.................................       17

      Section 5.11            Maintenance of Gearing Ratio.............................       17

      Section 5.12            Maintenance of Ratio of Debt to EBITDA...................       18

      Section 5.13            Maintenance of Interest Service Coverage Ratio...........       18

      Section 5.14            Sales, Etc. of Assets....................................       18

      Section 5.15            Other Secured Indebtedness...............................       18

      Section 5.16            Guaranteed Obligations...................................       19

ARTICLE 6 EVENTS OF DEFAULT............................................................       19

      Section 6.1             Events of Default........................................       19

ARTICLE 7 MISCELLANEOUS................................................................       20

      Section 7.1             Amendments, Etc..........................................       20

      Section 7.2             Notices, Etc.............................................       20

      Section 7.3             No Waiver; Remedies......................................       21

      Section 7.4             Costs and Expenses.......................................       21

      Section 7.5             Right of Setoff..........................................       21

      Section 7.6             Binding Effect...........................................       22

      Section 7.7             Governing Law............................................       22

      Section 7.8             Execution in Counterparts................................       22

      Section 7.9             Waiver of Jury Trial.....................................       23
</TABLE>

Exhibit A      Term Note
Exhibit B      Borrowing Notice
Exhibit C      Conversion/Continuation Notice

                                      -ii-
<PAGE>

                    TERM LOAN AND REVOLVING CREDIT AGREEMENT

      This Agreement, dated as of September 24, 2002, is entered into by VIKO
TECHNOLOGY, INC., a California corporation (the "Borrower"), and THE DEVELOPMENT
BANK OF SINGAPORE LTD., LOS ANGELES AGENCY, a foreign banking corporation
incorporated in Singapore (the "Bank").

                                    ARTICLE 1
                                 INTERPRETATION

      Section 1.1 Definitions. The following terms, as used herein, shall have
the respective meanings set forth below (such meanings to be equally applicable
to both the singular and plural forms of the terms defined).

      "Affiliate" means, as to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such
Person or is a director or officer of such Person. For purposes of this
definition, the term "control" (including the terms "controlling," "controlled
by" and "under common control with") of a Person means the possession, direct or
indirect, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

      "Borrowing Notice" means a notice from the Borrower to the Bank
substantially in the form of Exhibit B.

      "Business Day" means a day of the year on which banks are not authorized
or required by law to close in Los Angeles and, if the applicable day relates to
a LIBOR Loan, on which dealings are carried on in the London interbank market.

      "Closing Date" means the date on which the conditions precedent set forth
in Section 3.1 have been satisfied and the initial Loan has been funded.

      "Code" means the Internal Revenue Code of 1986.

      "Control Agreement" means a control agreement, restricted account
agreement or similar agreement or document, in each case in form and substance
reasonably satisfactory to the Bank and entered into for the purpose of
perfecting a security interest in one or more deposit accounts or securities
accounts of the Borrower.

      "Conversion," "Convert" and "Converted" each refer to a conversion of a
LIBOR Loan into a Fixed Rate Loan.

      "Conversion/Continuation Notice" means a notice from the Borrower to the
Bank substantially in the form of Exhibit C.

      "Credit Documents" means this Agreement, the Term Note, the Security
Agreement, the Guaranty, the Subordination Agreement, the Control Agreements and
any Interest Rate Agreements.

                                       -1-
<PAGE>

      "Debt" of any Person means (a) all obligations of such Person for
borrowed money; (b) all obligations of such Person for the deferred purchase
price of property or services (other than normal trade accounts payable arising
in the ordinary course of business that are not overdue); (c) all obligations of
such Person evidenced by notes, bonds, debentures or other similar instruments;
(d) all indebtedness of such Person created or arising under any conditional
sale or other title retention agreement with respect to property acquired by
such Person (even though the rights and remedies of the seller or lender under
any such agreement in the event of a default are limited to repossession or sale
of such property); (e) all obligations of such Person as lessee under leases
that have been or should be, in accordance with generally accepted accounting
principles, recorded as capital leases; (f) all obligations, contingent or
otherwise, of such Person under any acceptance, letter-of-credit or similar
facilities; (g) all obligations of such Person under any interest-rate swap,
"cap," "collar" or other hedging agreement; (h) all Guaranteed Indebtedness of
such Person; (i) all Debt, of another person or entity, of a type referred to in
any of clauses (a) through (g) above that is secured by (or for which the holder
of such Debt has the right, contingent or otherwise, to be secured by) a Lien on
property (including accounts and contracts rights) owned by such Person, even
though such Person has not assumed or become liable for the payment of such
Debt; (j) all liabilities of such Person in respect of unfunded vested benefits
under employee-benefit plans subject to ERISA; and (k) all Withdrawal Liability
of such Person incurred under employee-benefit plans subject to ERISA.

      "Default" means any Event of Default and any event that, with the
giving of notice or the passage of time or both, would become an Event of
Default.

      "EBITDA" of any Person means operating earnings of such Person before
interest expense (net of capitalized interest expense), taxes, depreciation
expense, amortization expense, noncash nonrecurring charges, and gains or losses
on sales of assets.

      "ERISA" means the Employee Retirement Income Security Act of 1974.

      "ERISA Affiliate" means any Person that for purposes of Title IV of ERISA
is a member of the Borrower's controlled group, or under common control with the
Borrower, within the meaning of Section 414 of the Code and the regulations
promulgated and rulings issued thereunder.

      "ERISA Event" means (a) a reportable event, within the meaning of Section
4043 of ERISA, unless the 30 day notice requirement with respect thereto has
been waived by the PBGC; (b) the provision by the administrator of any Plan of a
notice of intent to terminate such Plan, pursuant to Section 4041(a)(2) of ERISA
(including any such notice with respect to a plan amendment referred to in
Section 4041(e) of ERISA); (c) the cessation of operations at a facility in the
circumstances described in Section 4068(f) of ERISA; (d) the withdrawal by the
Borrower or an ERISA Affiliate from a Multiple Employer Plan during a plan year
for which it was a substantial employer, as defined in Section 4001(a)(2) of
ERISA; (e) the failure by the Borrower or any ERISA Affiliate to make a payment
to a plan required under Section 302(f)(1) of ERISA; (f) the adoption of an
amendment to a Plan requiring the provision of security to such Plan, pursuant
to Section 307 of ERISA; or (g) the institution by the PBGC of proceedings to
terminate a Plan, pursuant to Section 4042 of ERISA, or the occurrence of any
event or condition

                                       -2-
<PAGE>

that would constitute grounds under Section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, a Plan.

      "Event of Default" has the meaning set forth in Section 6.1.

      "Fixed Rate" means the fixed rate of interest per annum established by the
Bank, taking into account such factors as the Bank may deem appropriate.

      "Fixed Rate Loan" means a Loan that bears interest by reference to the
Fixed Rate.

      "Governmental Action" means any authorization, approval, consent, waiver,
exception, license, filing, registration, permit, notarization or other
requirement of any Governmental Person.

      "Governmental Person" means, whether domestic or foreign, any national,
federal, state or local government, any political subdivision thereof, any
governmental, quasi-governmental, judicial, public or statutory instrumentality,
authority, body or entity, including the Federal Deposit Insurance Corporation,
the Comptroller of the Currency, the Board of Governors of the Federal Reserve
System, any central bank and any comparable authority.

      "Governmental Rule" means any treaty, law, rule, regulation, ordinance,
order, code, interpretation, judgment, writ, injunction, decree, determination,
directive, guideline, request, policy or similar form of decision of any
Governmental Person, arbitrator or referee.

      "Guaranteed Indebtedness" of any Person means all Debt, of another person
or entity, of a type referred to in any of clauses (a) through (g) of the
definition of "Debt" in this Section 1.1 that is guaranteed directly or
indirectly in any manner by such Person, or in effect guaranteed directly or
indirectly by such Person through an agreement (a) to pay or purchase such Debt
or to advance or supply funds for the payment or purchase of such Debt, (b) to
purchase, sell or lease (as lessee or lessor) property, or to purchase or sell
services, primarily for the purpose of enabling the debtor to make payment of
such Debt or to assure the holder of such Debt against loss, (c) to advance or
supply funds to or in any other manner invest in the debtor (including any
agreement to pay for property or services irrespective of whether or not such
property is received or such services are rendered) or (d) otherwise to assure a
creditor against loss.

      "Guarantor" means Infiniti Solutions Pte Ltd, a company incorporated in
Singapore by which the Borrower is wholly owned.

      "Guaranty" means the guaranty executed by the Guarantor in favor of the
Bank with respect to this Agreement.

      "Interest Period" means, with respect to a LIBOR Loan, initially, the
period commencing on the date of such Loan or the date of Conversion of another
Loan into such a Loan and ending on the last day of the period selected by the
Borrower pursuant to the provisions below and, thereafter, each subsequent
period commencing on the last day of the immediately preceding Interest Period
and ending on the last day of the period selected by the Borrower pursuant to
the provisions below. The duration of each Interest Period shall be any number
of days or months up to and including 3 months (provided that such number of
days or months is then available to

                                      -3-
<PAGE>

the Bank for funding in the relevant interbank market), in each case as the
Borrower may select upon telephonic notice received by the Bank not later than
11:00 a.m., Los Angeles time, on the third Business Day before the first day of
such Interest Period (such notice to be confirmed by the Borrower's delivery of
a Borrowing Notice or a Conversion/Continuation Notice, as applicable, to the
Bank by telecopier by the end of the same Business Day); provided, however,
that:

      (a) only one Interest Period may be in effect for a Term Loan at any time;

      (b) whenever the last day of any Interest Period would otherwise occur on
a day other than a Business Day, the last day of such Interest Period shall be
extended to occur on the next succeeding Business Day; provided, however, that,
if such extension would cause the last day of such Interest Period to occur in
the next succeeding calendar month, then the last day of such Interest Period
shall occur on the next preceding Business Day; and

      (c) if the Bank fails to receive notice of the Borrower's selection of the
duration of any Interest Period for any LIBOR Loan, then the duration of such
Interest Period shall be 3 months.

      "Interest Rate Agreement" means any interest rate protection agreement,
interest rate future, interest rate option, interest rate swap, interest rate
cap or other interest rate hedge or arrangement entered into pursuant to Section
2.2(c) with the Bank or any Affiliate of the Bank (or any other institution
reasonably acceptable to the Bank).

      "LIBOR" means, for any Interest Period for any LIBOR Loan, the rate
appearing on page 3750 of the Telerate Service (or on any successor or
substitute page of such Service, or any successor to or substitute for such
Service, providing rate quotations comparable to those currently provided on
such page of such Service, as determined by the Bank from time to time for
purposes of providing quotations of interest rates applicable to dollar deposits
in the London interbank market) at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest Period, as the rate for
dollar deposits in an amount substantially equal to the amount of such Loan and
for a period coinciding with such Interest Period.

      "LIBOR Loan" means a Loan that bears interest by reference to LIBOR.

      "Lien" means, with respect to any asset, (a) any lien, security interest,
charge, claim, mortgage, pledge or other encumbrance of any kind in respect of
such asset or (b) the interest of a vendor or lessor under any conditional-sale
agreement, capital lease or other title-retention agreement relating to such
asset.

      "Loan" means a Term Loan or a Revolving Loan.

      "Loan Parties" means the Borrower and the Guarantor.

      "Multiemployer Plan" means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA and subject to Title IV thereof, to which the Borrower or
any ERISA Affiliate is making or accruing an obligation to make contributions,
or has within any of the preceding 5 plan years

                                      -4-
<PAGE>

made or accrued an obligation to make contributions, such plan being maintained
pursuant to one or more collective-bargaining agreements.

      "Multiple Employer Plan" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA and subject to Title IV thereof, that (a) is
maintained by the Borrower or an ERISA Affiliate and at least one Person other
than the Borrower and its ERISA Affiliates or (b) was so maintained previously,
but is not currently maintained by the Borrower or its ERISA Affiliates, and in
respect of which the Borrower or an ERISA Affiliate would still have liability
under Section 4064 or 4069 of ERISA in the event such plan has been or were to
be terminated.

      "Organic Documents" means, with respect to any entity, in each case to the
extent applicable thereto, its certificate and articles of incorporation or
organization, its by-laws or operating agreement, its partnership agreement, all
other formation and/or governing documents, and all voting agreements and
similar arrangements applicable to any of its authorized shares of capital
stock, its partnership interests or its member interests, and any other
arrangements relating to the control or management of any such entity (whether
existing as corporation, a partnership, a limited liability company or
otherwise).

      "PBGC" means the Pension Benefit Guaranty Corporation.

      "Person" means an individual, a partnership, a limited-liability company,
a corporation (including a business trust), a joint stock company, a trust, an
incorporated association, a joint venture or any other entity, including any
Governmental Person.

      "Plan" means a Single Employer Plan or a Multiple Employer Plan.

      "Prime Rate" means the variable rate of interest per annum established by
the Bank from time to time as its United States "prime rate." Such "prime rate"
is set by the Bank as a general reference rate of interest, taking into account
such factors as the Bank may deem appropriate, it being understood that many of
the Bank's commercial or other loans are priced in relation to such rate, that
it is not necessarily the lowest or best rate actually charged to any customer
and that the Bank may make various commercial or other loans at rates of
interest having no relationship to such rate. For purposes of this Agreement,
the Prime Rate shall change whenever the Bank's "prime rate" referred to above
changes, and each change in the Prime Rate shall be effective as of the opening
of business on the date established as the effective date of any change in such
"prime rate."

      "Revolving Loan" has the meaning set forth in Section 2.1(b).

      "Security Agreement" means the Security Agreement executed by the Borrower
in favor of the Bank, in form and substance satisfactory to the Bank.

      "Single Employer Plan" means a single employer plan, as defined in Section
4001(a)(15) of ERISA and subject to Title IV thereof, that (a) is maintained by
the Borrower or an ERISA Affiliate and no Person other than the Borrower and its
ERISA Affiliates or (b) was so maintained previously, but is not currently
maintained by the Borrower or its ERISA Affiliates,

                                      -5-
<PAGE>

and in respect of which the Borrower or an ERISA Affiliate would still have
liability under Section 4069 of ERISA in the event such plan has been or were to
be terminated.

      "Subordination Agreement" means that certain Subordination Agreement, in
form and substance satisfactory to the Bank in its sole discretion, executed by
Kumar Patel in his capacity as Sellers' Representative (as such term is defined
in the Share Purchase Agreement dated December 18, 2001 between the Guarantor
and the former shareholders of the Borrower) in favor of the Bank.

      "Subsidiary" means, as to any Person, any corporation, limited-liability
company, partnership, joint venture or other entity of which (a) a majority of
the outstanding capital stock or other ownership interests having ordinary
voting power to elect a majority of the board of directors or Persons performing
similar functions (irrespective of whether at the time other such capital stock
or interests have or might have voting power upon the occurrence of a
contingency) or (b) a majority of the interests in the capital or profits of
which is at the time directly or indirectly owned by such Person, by such Person
and one or more of its other Subsidiaries or by one or more of such Person's
other Subsidiaries. Unless otherwise specified herein, "Subsidiary" means a
Subsidiary of the Borrower.

      "Taxes" has the meaning set forth in Section 2.10.

      "Term Commitment" has the meaning set forth in Section 2.1(a).

      "Term Loan" has the meaning set forth in Section 2.1(a).

      "Term Loan Commitment Expiration Date" means March 31, 2003.

      "Term Note" means the Term Note of the Borrower payable to the order of
the Bank, substantially in the form of Exhibit A, evidencing the indebtedness of
the Borrower to the Bank resulting from a Term Loan.

      "Type" refers to the distinction between LIBOR Loans and Fixed Rate Loans.

      "Withdrawal Liability" has the meaning given such term under Part 1 of
Subtitle E of Part IV of ERISA.

      Section 1.2 Accounting Terms. Unless otherwise specified herein, all
accounting terms used herein shall be interpreted, all accounting determinations
hereunder shall be made, and all financial statements required to be delivered
hereunder with respect to the Borrower shall be prepared, in accordance with
generally accepted accounting principles consistent with those applied in the
preparation of the financial statements referred to in Section 4.5.

      Section 1.3 Interpretation. In this Agreement the singular includes the
plural and the plural the singular; words importing any gender include the other
genders; references to any statute are to be construed as including all
statutory provisions consolidating, amending or replacing the statute referred
to; references to "writing" include printing, typing, lithography and other
means of reproducing words in a tangible, visible form; references to sections
(or any subdivisions of a section), articles, schedules, annexes and exhibits
are to those of this

                                      -6-
<PAGE>

Agreement unless otherwise indicated; the words "including," "includes" and
"include" are deemed to be followed by the words "without limitation";
references to agreements and other contractual instruments are deemed to include
all subsequent amendments and other modifications to such instruments, but only
to the extent such amendments and other modifications are not prohibited by the
terms of this Agreement; and references to any Persons include their respective
permitted successors and assigns.

                                    ARTICLE 2
                           AMOUNTS AND TERMS OF LOANS

      Section 2.1 Commitments.

      (a) The Bank agrees, on the terms and conditions hereinafter set forth, to
make one or more term loans (each a "Term Loan") to the Borrower from and
including the Closing Date to but excluding the Term Loan Commitment Expiration
Date in an aggregate amount not to exceed $14,000,000 in principal amount at any
time outstanding (the "Term Commitment").

      (b) The Bank hereby establishes an uncommitted revolving credit facility,
pursuant to which the Bank, acting in its sole and absolute discretion, may
agree from time to time, but shall have no obligation to agree, on the terms and
conditions hereinafter set forth, to make loans (each a "Revolving Loan") to the
Borrower on any Business Day, in an aggregate amount not to exceed $2,000,000 in
principal amount at any time outstanding. Each Revolving Loan shall be in the
amount of $100,000 or an integral multiple of $100,000 in excess thereof.

      (c) NOTWITHSTANDING (i) THAT THIS AGREEMENT SETS FORTH CERTAIN PROCEDURES
FOR THE POSSIBLE EXTENSION OF REVOLVING LOANS BY THE BANK TO THE BORROWER AND
(ii) THAT THIS AGREEMENT CONTAINS CERTAIN AGREEMENTS OF THE BORROWER TO PROVIDE
INFORMATION TO THE BANK ON A REGULAR BASIS, TO MAKE CERTAIN PAYMENTS TO THE BANK
AND TO TAKE OTHER ACTIONS THAT MAY BENEFIT THE BANK OR CONSTRAIN THE BORROWER,
THE BORROWER ACKNOWLEDGES AND AGREES THAT (A) THE BANK HAS NO OBLIGATION
WHATSOEVER TO AGREE TO MAKE REVOLVING LOANS AS DESCRIBED HEREIN OR OTHERWISE AND
(B) THE BANK HAS THE RIGHT, SHOULD IT EXTEND CREDIT TO THE BORROWER AT ANY TIME
AS DESCRIBED HEREIN OR OTHERWISE, TO DISCONTINUE THE MAKING OF REVOLVING LOANS
TO THE BORROWER AT ANY TIME IN THE SOLE AND ABSOLUTE DISCRETION OF THE BANK.

      Section 2.2 Making Loans.

      (a) Each Loan shall be made on notice from the Borrower to the Bank, given
not later than 11:00 a.m., Los Angeles time, (i) in the case of a LIBOR Loan, on
the third Business Day before the date of the proposed Loan and (ii) in the case
of a Fixed Rate Loan, on the seventh Business Day before the date of the
proposed Loan. Each such notice of a Loan shall be by telephone confirmed, by
the end of the same Business Day, by the Borrower's delivery of a Borrowing
Notice to the Bank by telecopier and shall specify therein (i) the requested
date of such Loan (which shall be a Business Day), (ii) whether such Loan is to
be a Term Loan or a

                                      -7-
<PAGE>

Revolving Loan, (iii) in the case of a Term Loan, whether such Loan is to be a
LIBOR Loan or a Fixed Rate Loan, (iv) the amount of such Loan and (v) in the
case of a LIBOR Loan, the initial Interest Period for such Loan. Not later than
11:00 a.m., Los Angeles time, on the date of such Loan and upon fulfillment of
the applicable conditions set forth in Article 3, the Bank will make the
proceeds of the requested Loan available to the Borrower by crediting the
account designated by the Borrower for such purpose.

      (b) Notwithstanding anything in Section 2.2(a) to the contrary, the
Borrower may not request or continue any LIBOR Loan if the obligation of the
Bank to make or maintain LIBOR Loans is then suspended pursuant to Section 2.9.

      (c) Notwithstanding anything in Section 2.2(a) to the contrary, the
Borrower may not request a Fixed Rate Loan unless (i) the Bank enters into and
maintains, for the duration of such Fixed Rate Loan, Interest Rate Agreements,
each in form and substance reasonably satisfactory to the Bank, covering an
amount equal to or greater than the amount of the Fixed Rate Loan being
requested by the Borrower and (ii) the amount of the Fixed Rate Loan being
requested by the Borrower is more than or equal to $5,000,000 or such lesser
amount as is operationally feasible by the Bank.

      (d) Each Borrowing Notice shall be irrevocable and binding on the
Borrower. The Borrower will indemnify the Bank against any loss, cost or expense
incurred by the Bank as a result of any failure to fulfill, on or before the
date specified in any Borrowing Notice, the applicable conditions set forth in
Article 3, including any loss, cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by the Bank to
fund any Loan requested pursuant to such Borrowing Notice when such Loan, as a
result of such failure, is not made on such date.

      Section 2.3 Repayment.

      (a) The Borrower will repay the Term Loans in twelve equal quarterly
installments on the 1st day of each January, April, July and October, commencing
on April 1, 2004. Any amount repaid under the Term Loan may not be reborrowed by
the Borrower.

      (b) Within thirty days of receipt by the Borrower of a notice from the
Bank requesting repayment of the Revolving Loans or such other time period as
may be agreed to in writing by the Bank, the Borrower will repay all Revolving
Loans then outstanding.

      Section 2.4 Interest.

      (a) The Borrower will pay interest on the unpaid principal amount of each
Term Loan, from the date of such Loan until such principal amount is paid in
full, (i) during such periods as such Loan is a LIBOR Loan, at a rate per annum
equal at all times during each Interest Period for such LIBOR Loan to the sum of
LIBOR for such Interest Period for such LIBOR Loan plus 2.5% per annum and (ii)
during such periods as such Loan is a Fixed Rate Loan, at a rate per annum equal
at all times to the Fixed Rate.

      (b) The Borrower will pay interest on the unpaid principal amount of each
Revolving Loan, from the date of such Loan until such principal amount is paid
in full, at a rate per annum

                                      -8-
<PAGE>

equal at all times during each Interest Period for such LIBOR Loan to the sum of
LIBOR for such Interest Period for such LIBOR Loan plus 2.0% per annum.

      (c) In the event that any principal amount of any Loan or any other amount
payable hereunder is not paid to the Bank when due, the Borrower will pay
interest to the Bank on such amount from the date on which such amount is due
until the date on which such amount is paid in full, payable on demand, at an
interest rate per annum equal to (i) for Loans, the applicable interest rate for
such Loan plus 5% per annum or (ii) for any other amount, the Prime Rate plus 5%
per annum. In the event that the amount of such interest is less than $250, the
Borrower will pay an administrative charge of $250 rather than the amount of
such interest.

      Section 2.5 Prepayment. The Borrower may, upon at least 5 Business Days'
notice to the Bank stating the proposed date and principal amount of the
prepayment, and if such notice is given the Borrower will, prepay the
outstanding principal amount of the Term Loans and/or the Revolving Loans in
whole or in part, together with (a) accrued and unpaid interest to the date of
such prepayment on the principal amount prepaid and (b)(i) in the event that a
prepayment is made for a Term Loan on or before the first anniversary of the
Closing Date, a prepayment penalty equal to 0.50% on the outstanding principal
amount of such Loan and (ii) in the event that a prepayment is made for a Term
Loan after the first anniversary of the Closing Date but on or before the second
anniversary of the Closing Date, a prepayment penalty equal to 0.375% on the
outstanding principal amount of such Loan. Any amount prepaid under the Term
Loan may not be reborrowed by the Borrower. The Borrower agrees to indemnify the
Bank and to hold the Bank harmless from and to pay the Bank within 5 Business
Days of the Bank's demand the amount of any liability, loss or expense arising
from the reemployment of funds obtained by it, from fees payable to terminate
any Interest Rate Agreements relating to such funds or from fees payable to
terminate the deposits from which such funds were obtained (including reasonable
fees and expenses of counsel) which the Bank may sustain or incur as a
consequence of the making by the Borrower of a prepayment of any Loan. The only
prepayment penalty Borrower will incur for prepaying the Revolving Loans will be
for any funding loss incurred by the Bank resulting from Borrower's voluntary
election to prepay the Revolving Loans on a day which is not the last day of an
Interest Period with respect thereto. The Bank's certificate as to such
liability, loss or expense shall be deemed conclusive, absent manifest error.
This covenant shall survive the termination of this Agreement and the payment of
the Loans and all other amounts payable hereunder.

      Section 2.6 Fees. The Borrower will pay the Bank a commitment fee on the
average daily unused portion of the Term Commitment, from the date hereof until
the Term Loan Commitment Expiration Date, at the rate of 0.5% per annum, payable
quarterly in arrears on the 1st day of each January, April, July and October,
commencing on January 1, 2003, and on the Term Loan Commitment Expiration Date.

      Section 2.7 Payments and Computations.

      (a) The Borrower will make each payment due to the Bank hereunder and
under the Term Note and the Revolving Loans not later than 11:00 a.m., Los
Angeles time, on the day when due, in immediately available funds, to the Bank
at the account specified thereby for such purpose from time to time.

                                      -9-
<PAGE>

      (b) All computations of interest and fees payable by the Borrower
hereunder shall be calculated on the basis of a 360-day year and the actual
number of days elapsed (including the first day but excluding the last day of
the period in question). Each determination by the Bank of any interest rate or
fee hereunder shall be conclusive, except in the case of manifest error.

      Section 2.8 Payment on Non-Business Days. Whenever any payment to be made
hereunder or under the Term Note is stated to be due on a day other than a
Business Day, such payment shall be made on the next succeeding Business Day,
and such extension of time shall in such case be included in the computation of
payment of interest; provided, however, that, if such extension would cause
payment of interest on or principal of any Loan to be made in the next following
calendar month, such payment shall be made on the next preceding Business Day.

      Section 2.9 Increased Costs, Etc.

      (a) If, due to either (i) the introduction of or any change (including any
change by way of imposition or increase of reserve requirements) in or in the
interpretation of any Governmental Rule or (ii) the compliance with any
Governmental Rule (whether or not having the force of law), there is any
increase in the cost to the Bank of agreeing to make, making, funding or
maintaining any Loan, then the Borrower will from time to time, upon demand by
the Bank, pay to the Bank additional amounts sufficient to compensate the Bank
for such increased cost. A certificate as to the amount of such increased cost
submitted to the Borrower by the Bank shall be conclusive and binding for all
purposes, absent manifest error in the calculations contained therein or in the
applicability of such increased cost to any Loan.

      (b) If the Bank determines that compliance with any Governmental Rule or
any guideline or request from any Governmental Person (whether or not having the
force of law) affects or would affect the amount of capital required or expected
to be maintained by the Bank or any corporation controlling the Bank and that
the amount of such capital is increased by or based upon the existence of the
Bank's commitment to lend or any Loan hereunder and other commitments or loans
of such types (or similar commitments or loans), then, upon demand by the Bank,
the Borrower will pay to the Bank, from time to time as specified by the Bank,
additional amounts sufficient to compensate the Bank in the light of such
circumstances, to the extent that the Bank reasonably determines such increase
in capital to be reasonably allocable to the existence of the Bank's commitment
to lend or any Loan hereunder. A certificate as to such amounts submitted to the
Borrower by the Bank shall be conclusive and binding for all purposes, absent
manifest error in the calculations contained therein or in the applicability of
such increase in capital to any Loan.

      (c) Notwithstanding any other provision of this Agreement, if the
introduction of, or any change in or in the interpretation of, any Governmental
Rule makes it unlawful, or any Governmental Person asserts that it is unlawful,
for the Bank to make a LIBOR Loan or to continue to fund or maintain any LIBOR
Loan hereunder, then, on notice thereof and demand therefor by the Bank to the
Borrower, (i) each affected Loan shall automatically convert into a Loan bearing
interest at the Prime Rate, and interest on such Loan shall be payable in
arrears on the 1st day of each January, April, July and October during the
period of such conversion, and (ii) the obligation of the Bank to make or
maintain LIBOR Loans shall be suspended; provided,

                                      -10-
<PAGE>

however, that each affected Loan shall thereafter convert back into a LIBOR Loan
if the circumstances causing such suspension no longer exist.

      (d) If the Bank notifies the Borrower that U.S.-dollar deposits are not
available to the Bank in the relevant interbank market for a certain Interest
Period or Interest Periods, then the obligation of the Bank to make available
the affected Interest Period or Interest Periods shall be suspended until the
Bank notifies the Borrower that the circumstances causing such suspension no
longer exist. If at any time no Interest Periods are available to the Bank in
the relevant interbank market in the amount of the relevant Loan or Loans, then,
on notice thereof and demand therefor by the Bank to the Borrower, (i) each
affected Loan shall automatically convert into a Loan bearing interest at the
Prime Rate, and interest on such Loan shall be payable in arrears on the 1st day
of each January, April, July and October during the period of such conversion,
and (ii) the obligation of the Bank to make or maintain LIBOR Loans shall be
suspended; provided, however, that each affected Loan shall thereafter convert
back into a LIBOR Loan if the circumstances causing such suspension no longer
exist.

      Section 2.10 Taxes. The Borrower and the Bank will use their best efforts
to take whatever action may be necessary so that all payments by the Borrower
hereunder or under the Term Note shall be made, in accordance with Section 2.7,
free and clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto (all such taxes, levies, imposts, deductions, charges,
withholdings and liabilities hereinafter referred to as "Taxes"). In the event
of any application of or change in any Governmental Rule that has the effect of
requiring the Borrower to withhold Taxes from any amount payable to the Bank
under this Agreement, the amount so payable shall be increased to the extent
necessary to yield to the Bank (after payment of all Taxes) interest or any such
other amount payable hereunder at the rate or in the amount specified in this
Agreement and the Term Note.

      Section 2.11 Voluntary Conversion of LIBOR Loan into Fixed Rate Loan. The
Borrower may on any Business Day, upon prior written notice given to the Bank,
not later than 11:00 a.m., Los Angeles time, on the seventh Business Day before
the date of the proposed Conversion, subject to the provisions of Section 2.9,
Convert a LIBOR Loan into a Fixed Rate Loan; provided, however, that any
Conversion of a LIBOR Loan shall be made on, and only on, the last day of the
Interest Period for such Loan. Each such notice of a Conversion shall be by
telephone confirmed, by the end of the same Business day, by the Borrower's
delivery of a Conversion/Continuation Notice to the Bank by telecopier and,
within the restrictions specified above, shall specify (i) the date of such
Conversion and (ii) the Loan to be Converted. Each such notice of a Conversion
shall be irrevocable and binding on the Borrower.

      Section 2.12 Indemnity. The Borrower agrees to indemnify the Bank and to
hold the Bank harmless from and to pay the Bank within 5 Business Days of the
Bank's demand the amount of any liability, loss or expense arising from the
reemployment of funds obtained by it or from fees payable to terminate the
deposits from which such funds were obtained (including reasonable fees and
expenses of counsel) which the Bank may sustain or incur as a consequence of (a)
default by the Borrower in payment when due of the principal amount of or
interest on any LIBOR Loan, (b) default by the Borrower in making a borrowing
of, conversion or continuation of LIBOR Loans after the Borrower has given a
notice requesting the same in accordance with

                                      -11-
<PAGE>

the provisions of this Agreement, (c) default by the Borrower in making any
prepayment after the Borrower has given a notice thereof in accordance with the
provisions of this Agreement or (d) the making by the Borrower of a prepayment
or conversion of LIBOR Loans on a day which is not the last day of an Interest
Period with respect thereto. The Bank's certificate as to such liability, loss
or expense shall be deemed conclusive, absent manifest error. This covenant
shall survive the termination of this Agreement and the payment of the Loans and
all other amounts payable hereunder.

                                    ARTICLE 3
                              CONDITIONS OF LENDING

      Section 3.1 Conditions Precedent to Initial Loan. The obligation of the
Bank to make any Loan to be made on the Closing Date is subject to the
satisfaction, immediately prior to or concurrently with the making of such Loan,
of the following conditions and in the case of documentation, dated the Closing
Date (unless otherwise provided below) and in form and substance satisfactory to
the Bank; provided, however, the Closing Date shall be no later than 45 days
from the date of execution of this Agreement:

      (a) this Agreement, duly executed and delivered by the Borrower and the
Bank;

      (b) (i) the Term Note duly executed by the Borrower, (ii) the Security
Agreement duly executed by the Borrower, (iii) the Guaranty duly executed by the
Guarantor, (iv) the Subordination Agreement, (v) Control Agreements executed by
the relevant depositary and the Borrower with respect to the deposit accounts
and securities accounts of the Borrower selected by the Bank and (vi) all other
agreements or instruments required to create or perfect a security interest in
the Borrower's personal property;

      (c) incumbency certificates for each of the Borrower and the Guarantor, in
each case dated as of the Closing Date and executed by the Chairman of the Board
of the Borrower and the Chief Executive Officer of the Guarantor, as applicable;

      (d) a copy of the resolutions of the Board of Directors of the Borrower
and the Guarantor authorizing (i) the execution, delivery and performance of the
Credit Documents to which it is or will be a party and (ii) in the case of the
Borrower, the borrowings contemplated hereunder, certified by the Secretary of
the Borrower and the Chief Executive Officer of the Guarantor, as applicable, as
of the Closing Date, which certificate states that such resolutions thereby
certified have not been amended, modified, revoked or rescinded and are in full
force and effect;

      (e) one or more certificates of the appropriate Governmental Persons of
the State of California, dated reasonably near the Closing Date, attaching the
charter documents of the Borrower and all amendments thereto and certifying that
such amendments are the only amendments to the Borrower's charter documents on
file;

      (f) certificates, dated a recent date, of the Secretaries of State of
California and Texas and each other jurisdiction where the Borrower is required
to be qualified to do business under such jurisdiction's law, certifying as to
the existence and good standing of, and the payment of taxes by, the Borrower in
such state;

                                      -12-
<PAGE>

      (g) copies of the Organic Documents of each of the Borrower and the
Guarantor certified as of the Closing Date as complete and correct copies
thereof by the Secretary of the Borrower and Chief Executive Officer of the
Guarantor, as applicable;

      (h) payment of a front-end fee in the amount of $80,000 (receipt of which
is hereby acknowledged by the Bank);

      (i) payment of all other fees, costs and expenses, accrued and unpaid and
otherwise due and payable on or before the Closing Date by the Borrower in
connection with this Agreement;

      (j) the executed legal opinion of counsel to the Borrower and the
Guarantor, in form and substance satisfactory to the Bank;

      (k) such UCC and other Lien searches as the Bank shall deem necessary;

      (l) evidence satisfactory to the Bank that the credit facility between the
Borrower and Comerica Bank-California and all other Debt of the Borrower not
permitted by the Credit Documents have been repaid, and all Liens in connection
therewith released;

      (m) no Default shall have occurred and be continuing on the Closing Date
or would occur after giving effect to the Loans requested to be made on the
Closing Date, and the representations and warranties contained in this Agreement
and each other Credit Document and certificate or other writing delivered to the
Bank in satisfaction of the conditions set forth in this Section 3.1 prior to or
on the Closing Date shall be correct in all material respects on and as of the
Closing Date, and the Bank shall have received a certificate of the Borrower to
such effect, dated as of the Closing Date and executed by an officer of the
Borrower;

      (n) evidence that the insurance policies provided for in Section 5.3 and
in the other Credit Documents are in full force and effect, certified by the
insurance broker therefor, together with appropriate evidence showing the Bank
as additional insured or loss payee, as appropriate; and

      (o) such other approvals, opinions and documents as the Bank may
reasonably request, and all legal matters incident to the making of such Loans
shall be satisfactory to the Bank.

      Section 3.2 Conditions Precedent to Each Loan. The obligation of the Bank
to make each Loan (including the initial Loan) shall be subject to the further
conditions precedent set forth below.

      (a) The following statements shall be true (and each of the giving of the
applicable Borrowing Notice and the acceptance by the Borrower of the proceeds
of such Loan shall constitute a representation and warranty by the Borrower that
on the date of such Loan such statements are true):

            (i) the representations and warranties contained in each Credit
      Document are correct in all material respects on and as of the date of
      such Loan, before and after giving

                                      -13-
<PAGE>

      effect to such Loan and to the application of the proceeds thereof, as
      though made on and as of such date; and

            (ii) no event has occurred and is continuing, or would result from
      such Loan or the application of the proceeds thereof, that constitutes a
      Default; and

      (b) The obligation of the Bank to make a Term Loan shall also be subject
to (i) confirmation by the Bank in a manner reasonably acceptable to the Bank of
the amount owed by the Borrower to Comerica Bank-California or (ii) receipt by
the Bank from the Borrower of a purchase order for new equipment, together with
a quotation for the price of such equipment from the supplier, all in a manner
reasonably acceptable to the Bank.

      (c) The Bank shall have received such other approvals, opinions, evidence
and documents as it may reasonably request.

                                    ARTICLE 4
                         REPRESENTATIONS AND WARRANTIES

      The Borrower represents and warrants to the Bank as set forth below.

      Section 4.1 Organization and Good Standing. The Borrower is a corporation
duly organized, validly existing and in good standing under the laws of the
State of California. The Borrower is duly qualified to do business as a foreign
entity and is in good standing in each jurisdiction in which it conducts
business (except for jurisdictions in which the failure to so qualify could not
reasonably be expected to have a material and adverse effect on the business,
condition (financial or otherwise), operations, performance, properties or
prospects of the Borrower).

      Section 4.2 No Conflict. The execution, delivery and performance by the
Borrower of each Credit Document to which it is or is to be a party are within
the Borrower's corporate powers, have been duly authorized by all necessary
corporate action and do not contravene (a) the Borrower's charter documents or
bylaws or (b) any applicable Governmental Rule or contractual restriction
binding on or affecting the Borrower (other than the credit facility in favor of
Comerica Bank-California which will be repaid by the Borrower pursuant to
Section 3.1(l)).

      Section 4.3 Governmental Action. No Governmental Action, and no
authorization, approval or other action by, or notice to, any Governmental
Person, is required for the due execution, delivery or performance by the
Borrower of any Credit Document to which it is or is to be a party.

      Section 4.4 Enforceability. This Agreement has been, and each other Credit
Document to which the Borrower is or is to be a party when delivered hereunder
will be, duly executed and delivered by the Borrower. This Agreement is, and
each other Credit Document to which the Borrower is or is to be a party when
delivered hereunder will be, a legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms, except
as the enforceability thereof may be limited by bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting creditors' rights
generally or by equitable principles relating to enforceability.

                                      -14-
<PAGE>

      Section 4.5 Financial Statements. (a) The audited consolidated balance
sheet of the Borrower and its Subsidiaries as of April 30, 2001 and the audited
consolidated statements of income, retained earnings and cash flows of the
Borrower and its Subsidiaries for the fiscal period then ended, (b) the
unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of
December 31, 2001 and the unaudited consolidated statements of income, retained
earnings and cash flows of the Borrower and its Subsidiaries for the fiscal
period then ended and (c) the interim consolidated financial statements of the
Borrower and its Subsidiaries as of June 30, 2002, the copies of all of which
have been furnished to the Bank, fairly present the financial condition of the
Borrower and its Subsidiaries as of such date and the results of the operations
of the Borrower and its Subsidiaries for the period ended on such date, all in
accordance with generally accepted accounting principles consistently applied.
Since June 30, 2002, there has been no material adverse change in such condition
or operations.

      Section 4.6 Legal Proceedings. There is no pending or, to the best
knowledge of the Borrower, threatened action or proceeding affecting the
Borrower or any of its Subsidiaries before any Governmental Person, arbitrator
or referee that could reasonably be expected to materially and adversely affect
the financial condition or operations of the Borrower or any such Subsidiary or
that purports to affect the legality, validity or enforceability of any Credit
Document.

      Section 4.7 Payment of Taxes. The Borrower has filed all federal, state
and local income tax returns required to have been filed thereby and has paid
all taxes, assessments, charges and other amounts due thereunder, except to the
extent disputed by appropriate proceedings diligently pursued and to the extent
that appropriate reserves are being maintained with respect to any amounts so
disputed.

      Section 4.8 Employee Benefit Plans. No ERISA Event has occurred and is
continuing with respect to any Plan. Neither the Borrower nor any ERISA
Affiliate has incurred or is reasonably expected to incur any unpaid Withdrawal
Liability to any Multiemployer Plan. Neither the Borrower nor any ERISA
Affiliate has been notified by the sponsor of a Multiemployer Plan that such
Multiemployer Plan is in reorganization or has been terminated, within the
meaning of Title IV of ERISA, and to the best knowledge of the Borrower, no
Multiemployer Plan is reasonably expected to be in reorganization or to be
terminated, within the meaning of Title IV of ERISA.

                                    ARTICLE 5
                              COVENANTS OF BORROWER

      So long as any Loan remains unpaid or the Term Commitment remains
outstanding, the Borrower will observe the covenants set forth below, unless the
Bank otherwise consents in writing.

      Section 5.1 Compliance with Governmental Rules, Etc. The Borrower will
comply, and will cause each of its Subsidiaries to comply, in all material
respects with all applicable Governmental Rules (including ERISA, the
regulations thereunder, and all applicable environmental laws and regulations),
such compliance to include paying before the same become delinquent all taxes,
assessments and governmental charges imposed upon it or upon its property,

                                      -15-
<PAGE>

except to the extent that the same is being contested in good faith by proper
proceedings and that appropriate reserves are being maintained with respect to
the same.

      Section 5.2 Financial and Other Information. The Borrower will furnish the
following to the Bank:

      (a) as soon as available and in any event within 120 days after the end of
each fiscal year of the Borrower, an audited consolidated balance sheet of the
Borrower and its Subsidiaries as of the end of such year and audited
consolidated statements of income, retained earnings and cash flows of the
Borrower and its Subsidiaries for such fiscal year, certified by independent
public accountants acceptable to the Bank;

      (b) as soon as available and in any event within 90 days after the end of
each fiscal quarter of the Borrower, an unaudited consolidated balance sheet of
the Borrower and its Subsidiaries as of the end of such quarter and unaudited
consolidated statements of income, retained earnings and cash flows of the
Borrower and its Subsidiaries for such quarter;

      (c) as soon as possible and in any event within 5 days after the
occurrence of any Default or ERISA Event of which the Borrower knows or should
know, a statement of the chief financial officer of the Borrower setting forth
details of such Default or ERISA Event and the action that the Borrower has
taken and proposes to take with respect thereto;

      (d) promptly after the filing or receipt thereof, copies of all reports
and notices that the Borrower or any Subsidiary thereof files under ERISA with
the U.S. Internal Revenue Service, the PBGC or the U.S. Department of Labor or
that the Borrower or any such Subsidiary receives from the PBGC; and

      (e) promptly upon request by the Bank, such other information respecting
the condition or operations, financial or otherwise, of the Borrower or any of
its Subsidiaries as the Bank may from time to time reasonably request.

      Section 5.3 Insurance. The Borrower will maintain, and will cause each of
its Subsidiaries to maintain, insurance with responsible and reputable insurance
companies or associations in such amounts and covering such risks as is usually
carried by companies engaged in similar businesses and owning similar properties
in the same general areas in which the Borrower or such Subsidiary operates
(including but not limited to casualty, liability, fire, flood, business
interruption, earthquake and workers' compensation). Notwithstanding anything to
the contrary set forth herein, the amount of the insurance shall be sufficient
to cover 100% of the replacement cost of the insured property. The obligation of
the Bank to make any Loan shall be conditioned on all such policies of insurance
containing an endorsement, in form and substance reasonably satisfactory to the
Bank, showing the Bank as additional insured or loss payee, as appropriate.

      Section 5.4 Preservation of Corporate Existence, Etc. The Borrower will
preserve and maintain, and will cause each of its Subsidiaries to preserve and
maintain, its corporate existence, rights (charter and statutory) and
franchises; provided, however, that neither the Borrower nor any such Subsidiary
shall be required to preserve any such right or franchise if the Board of
Directors of the Borrower or such Subsidiary reasonably determines that the

                                      -16-
<PAGE>

preservation thereof is no longer desirable in the conduct of the business of
the Borrower or such Subsidiary, as the case may be, and the loss thereof is not
disadvantageous in any material respect to the Borrower, such Subsidiary or the
Bank. The Borrower shall not, and shall not permit its Subsidiaries to, amend
its articles of incorporation and by-laws or equivalent Organic Documents
relating to its borrowing powers and its principal business activities without
the prior written consent of the Bank, such consent not to be unreasonably
withheld.

      Section 5.5 Visitation Rights. At any reasonable time and from time to
time upon receipt of reasonable prior notice, the Borrower will permit the Bank
or any agents or representatives thereof, to examine and make copies of and
abstracts from the records and books of account of, visit the properties of and
inspect the personal property of (including but not limited to goods financed
with the Loans), the Borrower and any of its Subsidiaries and to discuss the
affairs, finances and accounts of the Borrower and any of its Subsidiaries with
any of their officers or directors and with their independent certified public
accountants, all of the foregoing at the Borrower's sole cost and expense.

      Section 5.6 Maintenance of Properties. The Borrower will maintain and
preserve, and will cause each of its Subsidiaries to maintain and preserve, all
of its properties that are used or useful in the conduct of its business in good
working order and condition, ordinary wear and tear excepted.

      Section 5.7 Liens, Etc. Without the prior written consent of the Bank
which shall not be unreasonably withheld, the Borrower will not create or suffer
to exist any Lien or other type of preferential arrangement upon or with respect
to any of its properties, whether now owned or hereafter acquired, or assign any
right to receive income, in each case to secure or provide for the payment of
any Debt of any Person, other than purchase-money Liens upon any property
acquired or held by the Borrower in the ordinary course of business to secure
the purchase price of such property or to secure indebtedness incurred solely
for the purpose of financing the acquisition of such property.

      Section 5.8 Mergers, Etc. Without the prior written consent of the Bank
which shall not be unreasonably withheld, the Borrower will not merge or
consolidate with or into, or convey, transfer, lease or otherwise dispose of
(whether in one transaction or in a series of transactions) all or substantially
all of its assets (whether now owned or hereafter acquired) to, any Person.

      Section 5.9 Use of Proceeds. The Borrower will use the proceeds of the
Term Loans only to repay its outstanding loans to Comerica Bank-California and
to finance future capital expenditures. The Borrower will use the proceeds of
the Revolving Loans only for its working capital purposes.

      Section 5.10 Maintenance of Net Worth. The Borrower will not permit the
consolidated net worth of it and its Subsidiaries to be equal to or less than $0
at any time.

      Section 5.11 Maintenance of Gearing Ratio. The Borrower will not permit
the ratio of (a) the consolidated total liabilities of the Borrower and its
Subsidiaries to (b) the consolidated net worth of the Borrower and its
Subsidiaries to exceed (i) 1.75 to 1.0 as of December 31, 2002

                                      -17-
<PAGE>

and June 30, 2003, (ii) 1.50 to 1.0 as of December 31, 2003 and June 30, 2004
and (iii) 1.0 to 1.0 as of December 31, 2004 and as of the end of each June and
December thereafter.

      Section 5.12 Maintenance of Ratio of Debt to EBITDA. The Borrower will not
permit the ratio of (a) the consolidated Debt of the Borrower and its
Subsidiaries to (b) the consolidated EBITDA of the Borrower and its Subsidiaries
to exceed (i) 2.75 to 1.0 as of December 31, 2002 and June 30, 2003, (ii) 2.25
to 1.0 as of December 31, 2003 and June 30, 2004 and (iii) 2.0 to 1.0 as of
December 31, 2004 and as of the end of each June and December thereafter;
provided, however, that, if the Borrower fails to comply with the foregoing
covenant or the covenant set forth in Section 5.13 as of December 31, 2002, then
such failure shall not constitute a default of such covenant if the Borrower
does not permit the ratio of (x) the consolidated EBITDA of the Borrower and its
Subsidiaries less taxes paid, payable and/or accrued by the Borrower and its
Subsidiaries for such fiscal year to (y) the consolidated amount of all interest
on Debt which was paid, payable and/or accrued for such fiscal year (without
duplication of previous amounts) and the consolidated amount of the current
portion of long term Debt of the Borrower and its Subsidiaries to be less than
1.25 to 1.0 as of December 31, 2002. The Borrower shall be permitted to use
either a rolling twelve month basis figure or an annualized six months basis
figure in determining compliance with this covenant as of the end of June of any
fiscal year.

      Section 5.13 Maintenance of Interest Service Coverage Ratio. The Borrower
will not permit the ratio of (a) the consolidated EBITDA of the Borrower and its
Subsidiaries less taxes paid, payable and/or accrued by the Borrower and its
Subsidiaries to (b) the consolidated amount of all interest on Debt which was
paid, payable and/or accrued to be less than 6.0 to 1.0 as of the end of June
and December of any fiscal year. The Borrower shall be permitted to use either a
rolling twelve month basis figure or an annualized six months basis figure in
determining compliance with this covenant as of the end of June of any fiscal
year.

      Section 5.14 Sales, Etc. of Assets...Without the prior written consent of
the Bank which shall not be unreasonably withheld, the Borrower will not,
without the prior written consent of the Bank which shall not be unreasonably
withheld, sell, lease, transfer or otherwise dispose of, or permit any
Subsidiary to sell, lease, transfer or otherwise dispose of, any of its assets,
except in the ordinary course of the Borrower's or such Subsidiary's business.

      Section 5.15 Other Secured Indebtedness. Without the prior written consent
of the Bank which shall not be unreasonably withheld, the Borrower shall not,
and shall not permit any Subsidiary to, create, incur, assume or permit to exist
any indebtedness or liabilities resulting from borrowings, loans, advances,
capitalized leases or purchase-money indebtedness secured by the Borrower's or
such Subsidiary's assets, whether matured or unmatured, liquidated or
unliquidated, joint or several, except for (a) liabilities of the Borrower to
the Bank, (b) liabilities of the Borrower to the Junior Creditor (as defined in
the Subordination Agreement) not exceeding $15,000,000 and (c) purchase-money
indebtedness and capitalized leases of the Borrower or any Subsidiary incurred
in connection with the purchase or lease of equipment, so long as the
outstanding principal amount of indebtedness incurred in connection with such
purchase or lease of equipment, whether before or after the date hereof, at no
time exceeds $5,000,000 in the aggregate.

                                      -18-
<PAGE>

      Section 5.16 Guaranteed Obligations. Other than the guarantee by the
Borrower guaranteeing the Guarantor's obligations to the Junior Creditor (as
defined in the Subordination Agreement), the Borrower shall not, and shall not
permit any Subsidiary to, create, incur, assume or permit to exist any
Guaranteed Indebtedness without the prior written consent of the Bank which
shall not be unreasonably withheld. The Borrower shall not make any payment or
distribute any assets of any kind or character, whether in cash or property, to
Junior Creditor on account of the Borrower's obligations to guarantee the
Guarantor's obligations to the Junior Creditor.

                                    ARTICLE 6
                                EVENTS OF DEFAULT

      Section 6.1 Events of Default. If any of the following events (each an
"Event of Default") occurs and is continuing:

      (a) the Borrower fails to make any payment of principal of, or interest
on, any Loan when due;

      (b) any representation or warranty made by any Loan Party (or any of its
officers) in or in connection with any Credit Document proves to have been
incorrect in any material respect when made;

      (c) any Loan Party fails to perform or observe any term, covenant or
agreement contained in any Credit Document on its part to be performed or
observed (other than any referred to in Section 6.1(a)), and any such failure
remains unremedied for 10 days after written notice thereof has been given to
such Loan Party by the Bank;

      (d) any Loan Party or any of its Subsidiaries fails to pay any principal
of, or premium or interest on, any Debt (other than the Loans) of such Loan
Party or such Subsidiary (as the case may be), when the same becomes due and
payable (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure continues after the applicable grace
period, if any, specified in the agreement or instrument relating to such Debt;
any other event occurs or condition exists under any agreement or instrument
relating to any such Debt and continues after the applicable grace period, if
any, specified in such agreement or instrument, if the effect of such condition
or event is to accelerate, or to permit the acceleration of, the maturity of
such Debt; or any such Debt is declared to be due and payable, or is required to
be prepaid (other than by a regularly scheduled required prepayment), prior to
the stated maturity thereof;

      (e) any Loan Party or any of its Subsidiaries generally does not pay its
debts as such debts become due, admits in writing its inability to pay its debts
generally or makes a general assignment for the benefit of creditors; any
proceeding is instituted by or against any Loan Party or any of its Subsidiaries
seeking to adjudicate it as bankrupt or insolvent, seeking liquidation, winding
up, reorganization, arrangement, adjustment, protection, relief or composition
of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of any order for
relief or the appointment of a receiver, trustee or other similar official for
it or for any substantial part of its property; or any Loan Party or any of its

                                      -19-
<PAGE>

Subsidiaries takes any corporate or other legal action to authorize any of the
actions set forth above in this Section 6.1(e);

      (f) any judgment or order for the payment of money in excess of $750,000
is rendered against any Loan Party or any of its Subsidiaries, and either (i)
enforcement proceedings are commenced by any creditor upon such judgment or
order or (ii) there is any period of 10 consecutive days during which a stay of
enforcement of such judgment or order, by reason of a pending appeal or
otherwise, is not in effect;

      (g) any material provision of the Guaranty for any reason ceases to be
valid and binding on the Guarantor, or the Guarantor so states in writing; or

      (h) the Guarantor is no longer the legal and beneficial owner, direct or
indirect, of all of the outstanding capital stock of the Borrower, or any of
such stock becomes subject to any Lien (other than a Lien in favor of the Bank);

      then, and in any such event, the Bank may, by notice to the Borrower, (i)
declare the Term Commitment (if then outstanding) to be terminated, whereupon
the same shall forthwith terminate, and (ii) declare the Loans, all interest
thereon and all other amounts payable under this Agreement and the other Credit
Documents to be forthwith due and payable, whereupon the Loans, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Borrower; provided, however, that in the
event of an actual or deemed entry of an order for relief with respect to any
Loan Party or any Subsidiary thereof under the Federal Bankruptcy Code (or the
equivalent under the Governmental Rules of any other jurisdiction), (A) the Term
Commitment (if then outstanding) shall automatically terminate, and (B) the
Loans, all such interest and all such amounts shall automatically become and be
due and payable, without presentment, demand, protest or any notice of any kind,
all of which are hereby expressly waived by the Borrower.

                                    ARTICLE 7
                                  MISCELLANEOUS

      Section 7.1 Amendments, Etc. No amendment or waiver of any provision of
this Agreement or the Term Note, or consent to any departure by the Borrower
therefrom, shall in any event be effective unless the same is in writing and
signed by the Bank, and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given.

      Section 7.2 Notices, Etc. All notices and other communications provided
for hereunder shall be in writing and shall be mailed (certified mail, return
receipt requested), telecopied or delivered personally to the Borrower or the
Bank, as applicable, at the address or telecopier number of such party set forth
under its name on the signature pages hereof, or at such other address or
telecopier number as designated by such party in a written notice to the other
parties. All such notices and communications shall be deemed received (a) if
personally delivered, upon delivery, (b) if sent by first-class mail, on the
third Business Day following deposit into the mails, and (c) if sent by
telecopier, on that Business Day if sent before 5 p.m.,

                                      -20-
<PAGE>

Pacific time, otherwise, on the Business Day following the sending of such
notice or communication.

      Section 7.3 No Waiver; Remedies. No failure on the part of the Bank to
exercise, and no delay in exercising, any right under any Credit Document shall
operate as a waiver thereof, and no single or partial exercise of any right
under any Credit Document shall preclude any other or further exercise thereof
or the exercise of any other right. The remedies provided in the Credit
Documents are cumulative and not exclusive of any remedies provided by law.

      Section 7.4 Costs and Expenses.

      (a) The Borrower agrees to pay on demand all costs and expenses in
connection with the preparation, execution, delivery, administration,
modification and amendment of the Credit Documents and the other documents
delivered hereunder, including the reasonable fees and out-of-pocket expenses of
counsel for the Bank with respect thereto and with respect to advising the Bank
as to its rights and responsibilities under the Credit Documents. The Borrower
further agrees to pay on demand all costs and expenses, if any (including
reasonable counsel fees and expenses), in connection with the enforcement
(whether through negotiations, legal proceedings or otherwise) of the Credit
Documents and the other documents delivered hereunder. Notwithstanding the
foregoing, the Bank will use its best efforts to minimize its legal fees
incurred in connection with documenting the transaction contemplated herein. The
Bank will notify the Borrower in the event that the legal fees incurred in
connection with this transaction exceeds $28,000, and both parties shall work in
good faith in minimizing any cost exceeding this amount.

      (b) If, due to acceleration of the maturity of the Loans pursuant to
Section 6.1 or due to any other reason, the Bank receives any payment of
principal of any Loan other than on the last day of an Interest Period for such
Loan, or if the basis for determining the interest rate for any Loan is changed
in accordance with the terms of this Agreement for any reason, then the Borrower
will pay to the Bank on demand any amounts required to compensate the Bank for
any losses, costs or expenses that it may incur as a result of such payment or
change, including any loss (including loss of anticipated profits), cost or
expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by the Bank to fund or maintain any Loan.

      (c) In the event that the Borrower or its Subsidiaries is in default of
the payment of insurance premiums, legal fees, property taxes or any other
out-of-pocket expenses, the Bank may in its sole and absolute discretion pay
such amounts and the Borrower agrees to reimburse the Bank for such amounts,
together with interest on such amounts from the date that the Bank paid such
amounts until the date on which such amounts are paid in full, payable on
demand, at an interest per annum equal to the Prime Rate plus 5% per annum. In
the event that the amount of such interest is less than $250, the Borrower will
pay the Bank an administrative charge of $250 rather than the amount of such
interest.

      Section 7.5 Right of Setoff. Upon the occurrence and during the
continuation of any Event of Default, the Bank is hereby authorized at any time
and from time to time, to the fullest extent permitted by law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by the

                                      -21-
<PAGE>

Bank to or for the credit or the account of the Borrower against any and all of
the obligations of the Borrower now or hereafter existing under this Agreement
or the Term Note, irrespective of whether or not the Bank has made any demand
under this Agreement or the Term Note and although such obligations may be
unmatured; provided, however, that, before setting off pursuant to this section
against any account that the Borrower may maintain with the Bank, the Bank shall
give the Borrower at least 3 days' prior written notice of the same, and the
Bank may prohibit withdrawals from such account unless and until such Event of
Default is no longer continuing. The Bank agrees to notify the Borrower after
any such setoff and application by the Bank; further provided, however, that the
failure to give such notice shall not affect the validity of such setoff and
application. The rights of the Bank under this section are in addition to other
rights and remedies (including other rights of setoff) that the Bank may have.

      Section 7.6 Binding Effect. This Agreement shall be binding upon and inure
to the benefit of the Borrower and the Bank and their respective successors and
assigns, except that the Borrower shall not have the right to assign its rights
hereunder or any interest herein without the prior written consent of the Bank.
The Bank may assign to any financial institution all or any part of, or any
interest in, the Bank's rights and benefits under the Credit Documents, and to
the extent of such assignment such assignee shall have the same rights and
benefits against the Borrower as it would have had if it were the Bank
hereunder.

      Section 7.7 Governing Law. THIS AGREEMENT AND THE TERM NOTE SHALL BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF CALIFORNIA WITHOUT REFERENCE TO THE CHOICE-OF-LAW PRINCIPLES THEREOF.

      Section 7.8 Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                      -22-
<PAGE>

      Section 7.9 Waiver of Jury Trial. THE BORROWER AND THE BANK HEREBY
IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO ANY OF THE CREDIT DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED THEREBY.

                                        VIKO TECHNOLOGY, INC.

                                        By:           /s/ Inderjit Singh
                                               -------------------------------
                                        Name:  Inderjit Singh
                                        Title: Chairman of the Board

                                        1605A Mabury Road
                                        San Jose, California 95133
                                        Telecopier:         (408) 923-6640
                                        Attention:          Inderjit Singh

                                        THE DEVELOPMENT BANK OF SINGAPORE
                                        LTD., LOS ANGELES AGENCY

                                        By:    /s/ Chee Kien Ong
                                               -------------------------------
                                        Name:  Chee Kien Ong
                                        Title: General Manager

                                        445 South Figueroa Street, Suite 3550
                                        Los Angeles, California 90071
                                        Telecopier: (213) 627-0228
                                        Attention:  Chong Chai Tan

                                       S-1
<PAGE>

                                    TERM NOTE

U.S.$14,000,000                                   Dated as of September 24, 2002

      FOR VALUE RECEIVED, the undersigned, VIKO TECHNOLOGY, INC., a California
corporation (the "Borrower"), hereby unconditionally promises to pay to the
order of THE DEVELOPMENT BANK OF SINGAPORE LTD., LOS ANGELES AGENCY, a foreign
banking corporation incorporated in Singapore (the "Bank"), in lawful money of
the United States and in immediately available funds, the aggregate unpaid
principal amount of all Term Loans made by the Bank to the undersigned pursuant
to Section 2.1 of the Credit Agreement (as hereinafter defined), in amounts in
accordance with, and subject to, the provisions of Section 2.3 of the Credit
Agreement. Such payment shall be made for the account of the Bank at the office
of the Bank, located at 445 South Figueroa Street, Suite 3550, Los Angeles,
California 90071 or at such other office as the holder of this Term Note may
notify the undersigned and as agreed to by the Bank. The undersigned further
agrees to pay interest in like money at such office or such other office on the
unpaid principal amount hereof from time to time at the rates per annum and on
the dates specified in Section 2.4 of the Credit Agreement until paid in full
(both before and after judgment to the extent permitted by law).

      This Term Note is the Term Note referred to in the Term Loan and Revolving
Credit Agreement dated as of September 24, 2002 (as amended, supplemented,
restated or otherwise modified from time to time, the "Credit Agreement"),
between the undersigned and the Bank, is entitled to the benefits thereof and of
the other Credit Documents and is subject to optional and mandatory prepayment
in whole or in part as provided therein. Reference is hereby made to the Credit
Agreement for a more complete statement of the terms and conditions under which
the Term Loan evidenced hereby is made and is to be repaid. Capitalized terms
used herein which are defined in the Credit Agreement shall have such meanings
unless otherwise defined herein or unless the context otherwise requires.

      Upon the occurrence of any one or more of the Events of Default specified
in the Credit Agreement, all amounts then remaining unpaid on this Term Note
shall become, or may be declared to be, immediately due and payable, all as
provided therein.

      THIS TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REFERENCE TO THE
CHOICE-OF-LAW PRINCIPLES THEREOF.

<PAGE>

      IN WITNESS WHEREOF, the undersigned has caused this Term Note to be duly
executed and delivered by its proper and duly authorized officer as of the day
and year first above written.

                                                    VIKO TECHNOLOGY, INC.

                                                    By: ________________________
                                                    Name: ______________________
                                                    Title: _____________________

                                      - 2 -

<PAGE>

                               SECURITY AGREEMENT

      This Security Agreement, dated as of September 24, 2002, is made by VIKO
TECHNOLOGY, INC., a California corporation (the "Borrower"), in favor of THE
DEVELOPMENT BANK OF SINGAPORE LTD., LOS ANGELES AGENCY, a foreign banking
corporation incorporated in Singapore (the "Bank").

                                    Recitals

      A.    The Borrower and the Bank have entered into a Term Loan and
Revolving Credit Agreement dated as of September 24, 2002 (said Agreement, as it
may hereafter be amended, restated or otherwise modified from time to time,
herein called the "Credit Agreement"). Terms defined in the Credit Agreement and
not otherwise defined herein are used herein as defined therein, and the rules
of interpretation set forth in Sections 1.2 and 1.3 of the Credit Agreement are
incorporated herein by reference. Terms defined in the California Uniform
Commercial Code (the "Code") and not otherwise defined herein or in the Credit
Agreement are used herein as defined in the Code.

      B.    It is a condition precedent to the extension of credit by the Bank
under the Credit Agreement that the Borrower grant the security interest
contemplated by this Agreement. Accordingly, the Borrower hereby agrees as set
forth below.

      Section 1. Grant of Security Interest. The Borrower hereby assigns and
pledges to the Bank, and hereby grants to the Bank a security interest in, all
of the Borrower's right, title and interest in and to the following, whether now
owned or hereafter acquired, whether now or hereafter existing and wherever
located (the "Collateral"):

            (a)   all equipment in all of its forms (including all machinery,
furniture, furnishings, trade fixtures, tools, appliances, boilers, turbines,
generators, pipes, wires, cooling towers, pollution-control equipment, switches
and other goods of any kind), and all accessions and additions thereto, parts
and appurtenances thereof, substitutions therefor and replacements thereof (all
such equipment, accessions, additions, parts, appurtenances, substitutions and
replacements herein called the "Equipment");

            (b)   all inventory in all of its forms (including (i) all goods in
which the Borrower has an interest in mass or a joint or other interest or right
of any kind (including goods in which the Borrower has an interest or right as
consignee) and (ii) all goods that are returned to or repossessed by the
Borrower), and all accessions to, products of and documents for any or all of
the foregoing (any and all such inventory, accessions, products and documents
herein called the "Inventory");

<PAGE>

            (c)   all accounts, chattel paper, instruments, letter-of-credit
rights, payment intangibles and other obligations for the payment of money to
the Borrower of any kind, whether or not arising out of or in connection with
the sale or lease of goods or the rendering of services, and all rights in and
to all security agreements, leases and other contracts securing or otherwise
relating to any such accounts, chattel paper, instruments, letter-of-credit
rights, payment intangibles or other obligations (any and all such accounts,
chattel paper, instruments, letter-of-credit rights, payment intangibles and
other obligations herein called the "Receivables");

            (d)   all investment property of any kind, all certificates and
instruments representing or evidencing such investment property, and all
interest, dividends, distributions, cash, instruments and other property from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any investment property;

            (e)   all of the following (the "Account Collateral"):

                  (i)   all deposit accounts, securities accounts and other
accounts maintained at banks or other financial institutions (all such deposit
accounts, securities accounts and other accounts herein called the "Bank
Accounts"), all funds held in the Bank Accounts and all certificates and
instruments, if any, from time to time representing or evidencing the Bank
Accounts;

                  (ii)  all notes, certificates of deposit, deposit accounts,
checks and other instruments from time to time hereafter delivered to or
otherwise possessed by the Bank for or on behalf of the Borrower in substitution
for or in addition to any or all of the then existing Account Collateral; and

                  (iii) all interest, dividends, cash, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of the then existing Account
Collateral;

            (f)   to the extent not referred to above in this Section 1, all
general intangibles, including the following: (i) inventions, designs, patents,
patent applications, copyrights, copyright registrations, applications to
register copyrights, licenses, trademarks (including service marks), trademark
or service mark applications, trade names, trade secrets, confidential or
proprietary technical and business information, know-how, show-how or other data
or information, software and databases and all embodiments or fixations thereof
and related documentation, registrations and franchises, and all additions,
improvements and accessions to, and books and records describing or used in
connection with, any of the foregoing, (ii) all contract rights and (iii) all
tax refunds; and

            (g)   all proceeds of any and all of the foregoing Collateral
(including proceeds that constitute property of any type described above in this
Section 1) and, to the extent not otherwise included, all (i) insurance proceeds
and other payments under insurance (whether or not the Bank is the loss payee
thereof) payable by reason of loss or damage to, or otherwise with respect to,
the Collateral or any part thereof, (ii) payments under any indemnity, warranty
or guaranty payable by reason of loss or damage to, or otherwise with respect
to, the Collateral or

                                       2
<PAGE>

any part thereof, (iii) eminent domain proceeds, (iv) books and records with
respect to the Collateral or any part thereof and (v) cash.

      NOTWITHSTANDING (i) THAT THE BORROWER IS GRANTING A SECURITY INTEREST TO
THE BANK PURSUANT TO THIS AGREEMENT AND (ii) THAT THIS AGREEMENT CONTAINS
CERTAIN AGREEMENTS OF THE BORROWER TO PROVIDE INFORMATION TO THE BANK ON A
REGULAR BASIS, TO MAKE CERTAIN PAYMENTS TO THE BANK AND TO TAKE OTHER ACTIONS
THAT MAY BENEFIT THE BANK OR CONSTRAIN THE BORROWER, THE BORROWER ACKNOWLEDGES
AND AGREES THAT (A) THE BANK HAS NO OBLIGATION WHATSOEVER TO AGREE TO MAKE
REVOLVING LOANS AS DESCRIBED IN THE CREDIT AGREEMENT OR OTHERWISE AND (B) THE
BANK HAS THE RIGHT, SHOULD IT EXTEND CREDIT TO THE BORROWER AT ANY TIME AS
DESCRIBED IN THE CREDIT AGREEMENT OR OTHERWISE, TO DISCONTINUE THE MAKING OF
REVOLVING LOANS TO THE BORROWER AT ANY TIME IN THE SOLE AND ABSOLUTE DISCRETION
OF THE BANK.

      Section 2. Security for Obligations. The security interest granted by the
Borrower pursuant to this Agreement secures the payment of all obligations of
the Borrower now or hereafter existing under, in respect of or in connection
with the following documents (the "Secured Documents"): (a) the Credit
Agreement; (b) each other Credit Document to which the Borrower is or becomes a
party; and (c) this Agreement (all such obligations herein called the "Secured
Obligations").

      Section 3. Borrower Remains Liable. Notwithstanding anything herein to the
contrary, (a) the Borrower shall remain liable under the contracts and
agreements included in the Collateral, to the extent set forth therein, to
perform all of its duties and obligations thereunder to the same extent as if
this Agreement had not been executed, (b) the exercise by the Bank of any of its
rights hereunder shall not release the Borrower from any of its duties or
obligations under the contracts and agreements included in the Collateral, and
(c) the Bank shall not (i) have any obligation or liability under the contracts
and agreements included in the Collateral by reason of this Agreement or (ii) be
obligated to perform any of the obligations or duties of the Borrower thereunder
or to take any action to collect or enforce any claim for payment assigned
hereunder.

      Section 4. Representations and Warranties. The Borrower represents and
warrants to the Bank as set forth below.

            (a)   All of the Equipment and Inventory is located at the address
specified for the Borrower pursuant to Schedule 1. The Borrower keeps its
originals of its records concerning the Collateral at the address specified for
the Borrower pursuant to Schedule 1. The Borrower does not own any chattel paper
or instruments.

            (b)   The Borrower is the legal and beneficial owner of the
Collateral, free and clear of any Lien other than Liens permitted by Section 5.7
of the Credit Agreement. No effective financing statement or other instrument
similar in effect covering any or all of the Collateral is on file in any filing
or recording office, except such as may have been filed or recorded: (i) in
favor of the Bank relating to this Agreement, (ii) pursuant to any
purchase-money

                                       3
<PAGE>

liens entered into in the ordinary course of business and in accordance with the
terms of the Credit Agreement, (iii) in favor of the Junior Creditor (as defined
in the Subordination Agreement) and (iv) in favor of Comerica Bank-California.
The financing statements in favor of Comerica Bank-California shall be
terminated prior to or concurrently with the making of any Loan by the Bank. The
Borrower has no trade name other than those listed in Schedule 1.

            (c)   The Borrower has exclusive possession and control of the
Equipment and the Inventory. None of the Inventory is evidenced by a document of
title, warehouse receipt or similar document.

            (d)   The Borrower does not own any investment property.

            (e)   The Borrower does not have any deposit accounts or securities
accounts other than the accounts set forth in Schedule 2.

            (f)   This Agreement, the filing of a UCC-1 financing statement with
the California Secretary of State against the Borrower and in favor of the Bank,
and the execution of Control Agreements with respect to the Bank Accounts create
a valid and perfected first-priority security interest in the Collateral,
subject only to Liens permitted by Section 5.7 of the Credit Agreement. All
filings and other actions necessary or desirable to perfect and protect such
security interest have been duly taken.

            (g)   Except for the filing of a UCC-1 financing statement against
the Borrower and in favor of the Bank, no Governmental Action is required either
(i) for the grant by the Borrower of the security interest granted hereby or
(ii) for the perfection of or exercise by the Bank of its rights provided for in
this Agreement or the remedies in respect of the Collateral provided pursuant to
this Agreement.

      Section 5. Further Assurances.

            (a)   The Borrower agrees that from time to time, at its expense, it
will promptly execute and deliver all further instruments and documents, and
take all further action, that may be necessary, or that the Bank may reasonably
request, in order to perfect and protect the security interest granted or
purported to be granted hereby or to enable the Bank to exercise and enforce its
rights and remedies hereunder with respect to any Collateral. Without limiting
the generality of the foregoing, the Borrower will, if requested by the Bank,
(i) execute and file such financing statements or amendments thereto, and such
other instruments or notices, as may be necessary, or as the Bank may reasonably
request, in order to perfect and preserve the security interest granted or
purported to be granted hereby and (iii) cause one or more Control Agreements,
in form and substance satisfactory to the Bank, to be executed by all parties
necessary to establish "control" under the Code with respect to any or all
deposit accounts or securities accounts of the Borrower, for the purpose of
perfecting a security interest in such accounts.

            (b)   The Borrower hereby authorizes the Bank to file one or more
financing or continuation statements, and amendments thereto, relative to all or
any part of the Collateral

                                       4
<PAGE>

without the signature of the Borrower where permitted by law. A copy of this
Agreement or any financing statement covering the Collateral or any part thereof
shall be sufficient as a financing statement where permitted by law.

            (c)   The Borrower will furnish to the Bank from time to time such
statements and schedules further identifying and describing the Collateral, and
such other reports in connection with such Collateral, as the Bank may
reasonably request, all in reasonable detail.

      Section 6. As to Equipment and Inventory.

            (a)   The Borrower will keep the Equipment and Inventory at the
places therefor specified in Section 4(a) hereof.

            (b)   The Borrower will cause the Equipment to be maintained and
preserved in the same condition, repair and working order as when new, ordinary
wear and tear excepted, and in accordance with any applicable manufacturers'
manuals, and will forthwith, or in the case of any loss or damage to any of the
Equipment as quickly as practicable after the occurrence thereof, make or cause
to be made all repairs, replacements and other improvements in connection
therewith as are necessary or desirable to such end. The Borrower will promptly
furnish to the Bank a statement concerning any material loss or damage to the
Equipment.

            (c)   The Borrower will pay promptly when due all property and other
taxes, assessments and governmental charges or levies imposed upon, and all
claims (including claims for labor, materials and supplies) against, the
Equipment and Inventory; provided, however, that the Borrower shall not be
required to pay or discharge any such tax, assessment, charge, levy or claim
that is being contested in good faith and by proper proceedings and as to which
appropriate reserves are being maintained.

      Section 7. Place of Perfection; Collection of Receivables.

            (a)   The Borrower will give the Bank at least 30 days' prior
written notice of any change in the jurisdiction of its organization or in the
location of the office where it keeps its records concerning the Collateral.

            (b)   Except as otherwise provided in this Section 7(b), the
Borrower will continue to collect, at its own expense, all amounts due or to
become due to the Borrower under the Receivables. In connection with such
collections, the Borrower may take (and, at the Bank's direction, will take)
such action as the Borrower or the Bank may deem necessary or advisable to
enforce collection of the Receivables; provided, however, that the Bank shall
have the right at any time, upon the occurrence and during the continuation of a
Default and upon written notice to the Borrower of its intention to do so, to
notify the account debtors or obligors under any Receivables of the assignment
of such Receivables to the Bank, to direct such account debtors or obligors to
make payment of all amounts due or to become due to the Borrower thereunder
directly to the Bank, to enforce collection of any such Receivables at the
expense of the Borrower and to adjust, settle or compromise the amount or
payment of any such Receivables, in the same manner and to the same extent as
the Borrower might have done. After receipt by the

                                       5
<PAGE>

Borrower of the notice from the Bank referred to in the proviso to the preceding
sentence, (i) all amounts and proceeds (including instruments) received by the
Borrower in respect of the Receivables shall be received in trust for the
benefit of the Bank hereunder, shall be segregated from other funds of the
Borrower and shall be forthwith paid over to the Bank in the same form as so
received (with any necessary endorsement) to be held as cash collateral and, if
an Event of Default has occurred and is continuing, applied as provided in
Section 10(b), and (ii) the Borrower will not adjust, settle or compromise the
amount or payment of any Receivable, release wholly or partly any account debtor
or obligor thereunder, or allow any credit or discount thereon.

      Section 8. Bank Appointed Attorney-in-Fact. The Borrower hereby
irrevocably appoints the Bank as the Borrower's attorney-in-fact, with full
authority in the place and stead of the Borrower and in the name of the Borrower
or otherwise, from time to time in the Bank's discretion at any time after the
occurrence and during the continuation of a Default, to take any action and to
execute any instrument that the Bank may deem necessary or advisable to
accomplish the purposes of this Agreement, including the following:

            (a)   to obtain and adjust insurance required to be paid to the Bank
pursuant to Section 5.3 of the Credit Agreement;

            (b)   to ask for, demand, collect, sue for, recover, compromise,
receive and give acquittance and receipts for moneys due or to become due under
or in respect of any of the Collateral;

            (c)   to receive, endorse and collect any drafts or other
instruments, documents or chattel paper in connection with clause (a) or (b)
above; and

            (d)   to file any claims, take any action and institute any
proceedings that the Bank may deem necessary or desirable for the collection of
any of the Collateral or otherwise to enforce compliance with the rights of the
Bank with respect to any of the Collateral.

The foregoing power of attorney is a power coupled with an interest and is
therefore irrevocable without the written consent of the Bank.

      Section 9. Bank May Perform; Bank's Duties.

            (a)   If the Borrower fails to perform any agreement thereof
contained herein, the Bank may itself perform or cause performance of such
agreement, and the expenses of the Bank incurred in connection therewith shall
be payable by the Borrower under Section 11(b).

            (b)   The powers conferred on the Bank under this Agreement are
solely to protect its interest in the Collateral and shall not impose any duty
upon it to exercise any such powers. Except for the safe custody of any
Collateral in its possession and the accounting for moneys actually received by
it hereunder, the Bank shall not have any duty as to any Collateral, as to
ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relative to any Collateral, whether or not
the Bank has or is deemed to

                                       6
<PAGE>

have knowledge of such matters, or as to the taking of any necessary steps to
preserve rights against any parties or any other rights pertaining to any
Collateral. The Bank shall be deemed to have exercised reasonable care in the
custody and preservation of any Collateral in its possession if such Collateral
is accorded treatment substantially equal to that the Bank accords its own
similar property.

      Section 10. Remedies. If any Event of Default occurs and is continuing,
the provisions set forth below shall apply.

            (a)   The Bank may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein or otherwise available
to it, all of the rights and remedies of a secured party on default under the
Code (whether or not the Code applies to the affected Collateral) and may also
(i) require the Borrower to, and the Borrower hereby agrees that it will at its
expense and upon request by the Bank forthwith, assemble all or part of the
Collateral as directed by the Bank and make it available to the Bank at a place
to be designated by the Bank that is reasonably convenient to both parties and
(ii) without notice except as provided below, sell the Collateral or any part
thereof in one or more parcels at public or private sale, at any of the Bank's
offices or elsewhere, for cash, on credit or for future delivery and upon such
other terms as are commercially reasonable. The Borrower agrees that, to the
extent notice of sale is required by law, at least 10 days' notice to the
Borrower of the time and place of any public sale or the time after which any
private sale is to be made shall constitute reasonable notification. The Bank
shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given. The Bank may adjourn any public or private sale from
time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so
adjourned.

            (b)   All payments received by the Bank under or in respect of the
Collateral, and all cash proceeds received by the Bank in respect of any sale
of, collection from or other realization upon all or any part of the Collateral
may, in the discretion of the Bank, be held by the Bank as collateral for,
and/or then or at any time thereafter applied (after payment of any amounts
payable to the Bank pursuant to Section 11) in whole or in part by the Bank for
the ratable benefit of the Bank against, all or any part of the Secured
Obligations in such order as the Bank may elect. Any surplus of such payments or
cash proceeds held by the Bank and remaining after payment in full of the
Secured Obligations shall be paid over to the Borrower or to whoever may be
lawfully entitled to receive such surplus.

            (c)   The Bank may exercise any and all rights and remedies of the
Borrower under or in respect of the Collateral.

            (d)   All payments received by the Borrower under or in respect of
the Collateral shall be received in trust for the benefit of the Bank, shall be
segregated from other funds of the Borrower and shall be forthwith paid over to
the Bank in the same form as so received (with any necessary endorsement).

            (e)   The Bank may, without notice to the Borrower except as
required by law and at any time and from time to time, charge, set off and
otherwise apply any or all of the Account Collateral against the Secured
Obligations.

                                       7
<PAGE>

            (f)   Notwithstanding any agreement to the contrary, the Bank agrees
to provide at least 24 hours notice to the Guarantor prior to the Bank
exercising its rights under any Control Agreement after an Event of Default has
occurred.

      Section 11. Indemnity and Expenses.

            (a)   The Borrower agrees to indemnify the Bank from and against any
and all claims, losses and liabilities growing out of or resulting from this
Agreement (including enforcement of this Agreement), except claims, losses or
liabilities resulting from the Bank's gross negligence or willful misconduct.

            (b)   The Borrower will upon demand pay to the Bank the amount of
any and all reasonable expenses, including the reasonable fees and disbursements
of its counsel and of any experts and agents, that the Bank may incur in
connection with (i) the custody, preservation, use or operation of, or the sale
of, collection from or other realization upon, any of the Collateral, (ii) the
exercise or enforcement of any of the rights of the Bank hereunder or (iii) the
failure by the Borrower to perform or observe any of the provisions hereof.

      Section 12. Amendments, Waivers, Etc.

            (a)   No amendment or waiver of any provision of this Agreement, and
no consent to any departure by the Borrower herefrom, shall in any event be
effective unless the same is in writing and signed by the Bank and, in the case
of any amendment, the Borrower, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

            (b)   The waiver (whether express or implied) by the Bank of any
breach of the terms or conditions of this Agreement shall not prejudice any
remedy of the Bank in respect of any continuing or other breach of the terms and
conditions hereof and shall not be construed as a bar to any right or remedy
that the Bank would otherwise have on any future occasion under this Agreement.

            (c)   No failure to exercise or delay in exercising any right, power
or privilege under this Agreement by the Bank shall operate as a waiver thereof
or the exercise of any other right, power or privilege.

      Section 13. Addresses for Notices. All notices and other communications
provided for hereunder shall be given in accordance with the provisions of, and
with the effect provided in, Section 7.2 of the Credit Agreement.

      Section 14. Continuing Security Interest; Assignments under Credit
Agreement. This Agreement shall create a continuing security interest in the
Collateral and shall (a) remain in full force and effect until the Term
Commitment has terminated and the Secured Obligations have been paid in full,
(b) be binding upon the Borrower and its successors and assigns and (c) inure,
together with the rights and remedies of the Bank hereunder, to the benefit of
the Bank and its successors, transferees and assigns. Without limiting the
generality of the foregoing clause (c),

                                       8
<PAGE>

the Bank may assign or otherwise transfer any or all of its rights and
obligations under the Credit Agreement to any other Person, and such other
Person shall thereupon become vested with all of the benefits in respect thereof
granted to the Bank herein or otherwise. Upon the termination of the Term
Commitment and the payment in full of the Secured Obligations, the security
interest granted hereby shall terminate, and all rights to the Collateral shall
revert to the Borrower. Upon any such termination, the Bank will execute and
deliver to the Borrower, at its expense, such documents as the Borrower may
reasonably request to evidence such termination.

      Section 15. Headings. The section and subsection headings used in this
Agreement have been inserted for convenience of reference only and do not
constitute matters to be considered in interpreting this Agreement.

      Section 16. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Delivery by telecopier of an executed counterpart of a signature page to this
Agreement shall be effective as delivery of an originally executed counterpart
of this Agreement.

                 [THIS SPACE HAS BEEN LEFT BLANK INTENTIONALLY.]

                                       9
<PAGE>

      Section 17. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA
WITHOUT REFERENCE TO THE CHOICE-OF-LAW PRINCIPLES THEREOF.

      The Borrower has caused this Agreement to be executed by its duly
authorized representative as of the date first set forth above.

                                                   VIKO TECHNOLOGY, INC.

                                                   By:    /s/ Inderjit Singh
                                                       ------------------------
                                                   Name:  Inderjit Singh
                                                   Title: Chairman of the Board

<PAGE>

                             SUBORDINATION AGREEMENT

            This SUBORDINATION AGREEMENT is made as of September 24, 2002 (this
"Agreement") between THE DEVELOPMENT BANK OF SINGAPORE LTD., LOS ANGELES AGENCY
("Senior Creditor"), having an address at 445 South Figueroa Street, Suite 3550,
Los Angeles, California 90071 and KUMAR PATEL IN HIS CAPACITY AS SELLERS'
REPRESENTATIVE (as such term is defined in the Share Purchase Agreement dated
December 18, 2001 (the "Share Purchase Agreement") by and between Infiniti
Solutions Pte Limited, a Singapore limited liability company ("Infiniti") and
the then shareholders of Viko Technology, Inc., a California corporation) (the
"Junior Creditor").

            WHEREAS, Infiniti has executed the following: (a) Promissory Note
dated December 18, 2001 made by Infiniti payable to the order of Junior Creditor
in the original principal amount of Twelve Million and 00/100 Dollars
($12,000,000.00); and (b) Promissory Note dated December 18, 2001 made by
Infiniti payable to the order of Junior Creditor in the original principal
amount of Three Million and 00/100 Dollars ($3,000,000.00), as such amount may
be adjusted pursuant to the terms of the note (the foregoing notes are
collectively referred to as the "Notes");

            WHEREAS, the Notes are guaranteed by Viko Technology, Inc., a
California corporation ("Borrower"), pursuant to the terms of that certain
Guaranty dated December 18, 2001 (the "Guaranty") by Borrower in favor of Junior
Creditor as set forth more fully in the Guaranty, and Borrower's obligations
under the Guaranty are secured by the collateral set forth in that certain
Security Agreement dated December 18, 2001 (the "Security Agreement") by
Borrower in favor of Junior Creditor as set forth more fully in the Security
Agreement (the Guaranty, the Security Agreement and the documents and
instruments executed pursuant thereto are collectively referred to as the
"Junior Creditor Documents"); all loans, advances, liabilities and obligations
at any time owed by Borrower to Junior Creditor, now existing or hereafter
arising, secured or unsecured, absolute or contingent, due or to become due, and
whether direct or indirect or acquired by Junior Creditor by transfer, pledge,
purchase, assignment or otherwise, including without limitation, the obligations
evidenced by the Junior Creditor Documents, together with all principal,
interest, fees, attorneys' fees and costs, charges, expenses, costs and interest
accruing during a bankruptcy proceeding with respect to Borrower,
notwithstanding any law to the contrary, are referred to as the "Junior Debt";

            WHEREAS, Senior Creditor has made and will make certain loans and
credit accommodations to Borrower pursuant to the terms and conditions of that
certain Term Loan and Revolving Credit Agreement dated as of September __, 2002
by and between Senior Creditor and Borrower (as amended from time to time such
document, together with all instruments and documents executed in connection
therewith, the "Senior Creditor Documents"); all loans, advances, liabilities
and obligations at any time owed by Borrower to Senior Creditor, now existing or
hereafter arising, secured or unsecured, absolute or contingent, due or to
become due, and whether direct or indirect or acquired by Senior Creditor by
transfer, pledge, purchase, assignment or otherwise, including without
limitation, the obligations evidenced by the Senior Creditor Documents, together
with all principal, interest, fees, attorneys' fees and costs, charges,

<PAGE>

expenses, costs and interest accruing during a bankruptcy proceeding with
respect to Borrower, notwithstanding any law to the contrary, are referred to as
the "Senior Debt";

            WHEREAS, Senior Creditor requires that Junior Creditor subordinate,
and Junior Creditor has agreed to subordinate, the repayment of the Junior Debt
and Junior Creditor's rights and remedies relating thereto under the Junior
Creditor Documents to the payment and performance of the Senior Debt and Senior
Creditor's rights and remedies relating thereto under the Senior Creditor
Documents; and

            WHEREAS, Senior Creditor requires that Junior Creditor subordinate,
and Junior Creditor has agreed to subordinate, Junior Creditor's security
interest and lien on Borrower's property and assets to the security interest and
lien of Senior Creditor in Borrower's property and assets, and to Senior
Creditor's rights and remedies as a secured party related thereto.

            NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Senior Creditor and Junior Creditor agree as follows:

            1.    No Third Party Beneficiaries. All understandings, agreements,
representations and warranties contained hereby are solely for the benefit of
the parties hereto and there are no other parties (including, without
limitation, Borrower) who are intended to be benefited in any way by this
Agreement.

            2.    Outstanding Balance of Junior Debt. Junior Creditor represents
and warrants that as of the date hereof, the aggregate principal amount of
indebtedness due and owing from Infiniti and guaranteed by Borrower to Junior
Creditor is Fifteen Million and 00/100 Dollars ($15,000,000.00) and such amount
is evidenced by the Junior Creditor Documents. Other than the Junior Creditor
Documents, there are no agreements or instruments between Junior Creditor and
Borrower relating to the payment of the Junior Debt.

            3.    Subordination of Junior Debt. Junior Creditor agrees that the
payment of the principal of, interest on, and other amounts due and owing on the
Junior Debt is and shall be expressly subordinate and junior in right of payment
to the indefeasible payment and performance in full of the Senior Debt.

                  3.1   Payments in Trust for Senior Creditor. Any payments or
distribution of assets of Borrower of any kind or character, whether in cash or
property, received by Junior Creditor on account of the Junior Debt in violation
of this Agreement, shall be held by Junior Creditor, in trust, for the benefit
of Senior Creditor, and shall be delivered to Senior Creditor in kind,
immediately upon receipt by Junior Creditor, for application to the Senior Debt
until the Senior Debt is indefeasibly paid in full. Any proceeds of collateral,
or proceeds thereof (whether or not identifiable), or payments from any
guarantors received by Junior Creditor, on account of the Junior Debt, shall be
paid to the Senior Creditor immediately upon receipt by Junior Creditor until
the Senior Debt is paid in full.

                  3.2   Dissolution, Liquidation or Reorganization of Borrower.
Upon the distribution of any of Borrower's assets, whether by reason of sale,
reorganization, liquidation, dissolution, arrangement, bankruptcy, receivership,
assignment for the benefit of creditors,

<PAGE>

foreclosure or otherwise, Senior Creditor shall be entitled to receive payment
in full of the Senior Debt prior to the payment of all or any part of the Junior
Debt.

            4.    Priority of Liens. Notwithstanding the terms or provisions of
any agreement or arrangement which either Senior Creditor or Junior Creditor may
now or hereafter have with Borrower, or any rule of law, and irrespective of (a)
the time, order or method of attachment or perfection of any security interest
or the recordation or other filing in any public record of any financing
statement or security agreement; or (b) the giving or failure to give notice of
the acquisition or expected acquisition of purchase money security interests,
the security interest granted to Senior Creditor by Borrower, whether or not
perfected, or any other lien now or hereafter held by Senior Creditor are and
shall remain senior to and have priority over any security interest now or
hereafter granted by Borrower to Junior Creditor.

            5.    Standstill Period. If (a) there is a Default or an Event of
Default under the Senior Debt; or (b) if there is a Default (as defined in the
Junior Creditor Documents) under the Junior Debt such that Junior Creditor then
has the right to enforce rights against Borrower and Junior Creditor's
collateral, then Junior Creditor shall not be entitled to declare the Junior
Debt to be due and payable or take any action with respect to collateral in
which its security interest is subordinate to that of Senior Creditor, whether
by judicial or non-judicial foreclosure, notification to Borrower's account
debtors, setoff or otherwise exercise any other remedy until the indefeasible
payment in full of the Senior Debt.

                  5.1   Intervention. If Junior Creditor, in contravention of
the terms of this Section 5, shall commence, prosecute or participate in any
suit, action or proceeding against Borrower or initiate any foreclosure sale or
proceeding or any other action to enforce its lien on any of Senior Creditor's
collateral, then Borrower may interpose as a defense or plea the making of this
Agreement, and the Senior Creditor may intervene and interpose such defense or
plea in its name or in the name of Borrower. If the Junior Creditor, in
contravention of the terms of this Agreement, shall attempt to enforce any
remedies prohibited by this Agreement, then Senior Creditor or Borrower may, by
virtue of this Agreement, restrain the enforcement thereof in the name of Senior
Creditor or in the name of Borrower.

            6.    No Lien on Real Property. Junior Creditor represents and
warrants that it does not now have and it will not obtain, without Senior
Creditor's prior written consent, a lien or security interest on, or in, the
real property of Borrower.

            7.    Covenants of Junior Creditor. Junior Creditor covenants and
agrees that it shall not, except as provided in this Agreement, directly or
indirectly:

                  7.1   exercise or enforce any right of acceleration, demand or
set off against Borrower or the assets or property of Borrower, in each case in
connection with the Junior Debt;

                  7.2   make any claim or commence or initiate any action,
lawsuit, case or proceedings against Borrower in connection with the Junior Debt
or join together with any creditor in any action, lawsuit, case or proceeding
against Borrower in connection with the Junior Debt;

<PAGE>

                  7.3   ask for, demand, take, accept, receive or take any
action to obtain, any security interest or lien on the assets or property of
Borrower or exercise any right of foreclosure or any right or remedy with
respect to Borrower or the assets or property of Borrower;

                  7.4   contact any account debtors of Borrower in connection
with the Junior Debt or otherwise seek payment from any obligor on any
Collateral (as defined in the Senior Creditor Documents) in connection with the
Junior Debt; or

                  7.5   take any other action that interferes with, is
prejudicial to or inconsistent with Senior Creditor's rights and first priority
secured lien with respect to the assets or property of Borrower including,
without limitation, the taking of any action that will impede, interfere with,
restrict, or restrain the exercise by Senior Creditor of its rights and remedies
under the Senior Creditor Documents.

            8.    Assignment of Senior Debt. Any person or entity whose loans or
advances to Borrower hereafter are used to refinance and pay in full the Senior
Debt shall be deemed for all purposes hereof to be the successor to Senior
Creditor, and from and after the date of any such refinancing in satisfaction in
full of the Senior Debt such person or entity shall be deemed a party hereto in
the place and stead of Senior Creditor as if such person or entity had been the
original signatory hereto, and all loans, advances, liabilities, covenants and
duties at any time or times owed by Borrower to such person or entity, whether
direct or indirect, absolute or contingent, secured or unsecured, due or to
become due, then existing or thereafter arising, including any renewals,
extensions, modifications, or replacements of any of the foregoing, shall be
deemed for all purposes hereunder to constitute and be Senior Debt. Junior
Creditor shall execute and deliver such further documents and instruments and
take such further action as may reasonably be requested by such successor to
Senior Creditor to effect the purposes of this Agreement.

            9.    Representations and Warranties of Junior Creditor. Junior
Creditor represents, covenants and agrees that:

                  9.1   as of the date hereof, it is the sole owner and holder
of the Junior Debt and that it has not sold or assigned any interest therein;

                  9.2   it has not granted any prior subordination with respect
to the Junior Debt, except for a subordination agreement with Comerica Bank -
California, in substantially the same form as this Agreement, which is expected
to be terminated upon the retirement of the loans made to Borrower by Comerica
Bank - California by the loans made under the Senior Credit Documents;

                  9.3   it does not have a security interest or lien on the
property or assets of Borrower other than as set forth in the Junior Creditor
Documents;

                  9.4   it will not, at any time while this Agreement is in
effect, sell, transfer, pledge, assign, hypothecate or otherwise dispose of any
or all of the Junior Debt to any entity other than one which agrees in a
writing, reasonably satisfactory in form and substance to Senior Creditor, to
become a party hereto and to succeed to the rights and to be bound by all of

<PAGE>

the obligations of Junior Creditor hereunder. In the case of any such
disposition by Junior Creditor, it will notify Senior Creditor at least (15)
fifteen days prior to the date of any of such intended disposition;

                  9.5   it will not grant, create, or incur any security
interest, lien, charge, or other encumbrance whatsoever upon the Junior Debt;

                  9.6   it will not modify, amend, alter, change, substitute or
extend any of the terms or provisions of the Junior Debt or any of the Junior
Creditor Documents in any manner which would make Borrower's obligations
thereunder more burdensome than as of the date hereof;

                  9.7   it will, at the request of Senior Creditor, release any
lien and security interest it has on any Senior Creditor collateral to
facilitate its transfer or sale so long as the proceeds thereof are applied
against the Senior Debt and any excess is paid to Junior Creditor to be applied
against the Junior Debt;

                  9.8   it waives any rights it may have to claim that the
enforceability of this Agreement may be affected by any subsequent modification,
release, extension, or other change, material or otherwise, in the Senior Debt;
and

                  9.9   (a) it is the duly authorized agent of the Sellers (as
defined in the Share Purchase Agreement) and has the full right, power and
authority to enter into this Agreement on behalf of the Sellers and to legally
bind the Sellers to the terms and conditions hereof and (b) when executed and
delivered by the Junior Creditor on behalf of itself and as the agent for the
Sellers, this Agreement shall constitute a valid and legally binding obligation
of Junior Creditor and the Sellers, respectively, enforceable against such
parties in accordance with its terms.

            10.   Modification of Senior Debt. Senior Creditor may at any time,
in Senior Creditor's discretion, renew or extend the time of payment of any
portion of the Senior Debt, increase the amount of the Senior Debt, or waive or
release any collateral which may be held therefor, and Senior Creditor may enter
into such agreements with Borrower as Senior Creditor may deem desirable without
notice to or further assent from the Junior Creditor and without in any way
affecting Senior Creditor's rights hereunder to amend or modify the Senior Debt.

            11.   Junior Creditor Claims. If Junior Creditor fails to diligently
enforce any of its rights in any claims it may have against Borrower or its
properties arising out of or relating to the Junior Debt ("Junior Creditor
Claim"), in any bankruptcy, receivership or any other insolvency proceeding
relative to Borrower or its properties, then Junior Creditor hereby: (a) assigns
to Senior Creditor all of its rights in any Junior Creditor Claim, in any
bankruptcy, receivership or any other insolvency proceeding relative to Borrower
or its properties; and (b) irrevocably appoints Senior Creditor as Junior
Creditor's true and lawful attorney, with full power of substitution, (which
power is coupled with an interest and is irrevocable), for the use and benefit
of Senior Creditor, without notice to Junior Creditor at Senior Creditor's
option, to: (i) enforce Junior Creditor Claims whether in Senior Creditor's own
name or in the name of Junior Creditor, by proof of debt, proof of claim, suit
or otherwise; (ii) collect any assets of

<PAGE>

Borrower distributed, divided or applied by way of dividend or payment, or any
securities or the proceeds of any realization upon the same in respect of Junior
Creditor Claims, and apply the same to the Senior Debt until the Senior Debt is
paid in full in cash; and (iii) vote and exercise any and all rights in respect
of Junior Creditor Claims including, without limitation, to accept or reject any
plan of partial or complete liquidation, reorganization or arrangement.

            12.   Waiver of Marshaling. Junior Creditor irrevocably waives any
right to compel Senior Creditor to marshal assets of the Borrower, whether such
rights arise under California Civil Code Sections 2899 and 3433 or otherwise.

            13.   Term. The subordination and agreements set forth herein shall
remain in full force and effect until Senior Creditor advises Junior Creditor
that Borrower has indefeasibly paid in full in cash the Senior Debt and Senior
Creditor has terminated its security interests in and to the collateral. The
rights and obligations of Junior Creditor and Senior Creditor hereunder shall
not be affected by any act or failure to act by Borrower (regardless of any
knowledge Senior Creditor may have thereof) or the bankruptcy or insolvency of
Borrower and shall be effective regardless of whether either Senior Creditor or
Junior Creditor in the future seeks to rescind, amend, terminate or reform by
litigation or otherwise their respective agreements with Borrower.

            14.   Further Assurances. Each party hereto agrees to execute and
deliver such additional instruments and documents and make such additional
actions as the other party may reasonably request in order to carry out and
evidence the terms of this Agreement.

            15.   Attorneys' Fees. If either party seeks to enforce its rights
hereunder, then the prevailing party shall have its reasonable attorneys' fees
and expenses incurred in the enforcement of this Agreement (whether or not the
result of litigation) paid by the other party. It shall be presumed (subject to
rebuttal only by the introduction of competent evidence to the contrary) that
the amount recoverable is the amount billed to the prevailing party by its
counsel and that such amount will be reasonable if based on customary billing
rates charged to such party by its counsel in similar matters.

            16.   Venue and Jury Trial Waiver. Senior Creditor and Junior
Creditor hereby submit to the exclusive jurisdiction of the state and Federal
courts located in the County of Los Angeles, State of California. SENIOR
CREDITOR AND JUNIOR CREDITOR EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR
STATUTORY CLAIMS. EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER
CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH
PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

            17.   Miscellaneous.

<PAGE>

                  17.1  Choice of Law. This Agreement shall be governed by and
construed under the laws of the State of California.

                  17.2  Successors and Assigns. This Agreement shall bind and
inure to the benefit of the respective successors and permitted assigns of each
of the parties.

                  17.3  Severability of Provisions. In the event any one or more
of the provisions contained in this Agreement is held to be invalid, illegal or
unenforceable in any respect, then such provision shall be ineffective only to
the extent of such prohibition or invalidity, and the validity, legality, and
enforceability of the remaining provisions contained herein shall not in any way
be affected or impaired thereby.

                  17.4  Amendments. Neither this Agreement nor any provisions
hereof may be changed, waived, discharged or terminated, nor may any consent to
the departure from the terms hereof be given, orally (even if supported by new
consideration), but only by an instrument in writing signed by all parties to
this Agreement. Any waiver or consent so given shall be effective only in the
specific instance and for the specific purpose for which given.

                  17.5  Entire Agreement. This Agreement embodies the entire
agreement and understanding among and between the parties hereto, and supersedes
all prior or contemporaneous agreements and understandings between said parties,
verbal or written, express or implied, relating to the subject matter hereof. No
course of dealing, course of performance or trade usage, and no parol evidence
of any nature, shall be used to supplement or modify any terms of this
Agreement.

                  17.6  Waiver. No failure to exercise and no delay in
exercising any right, power, or remedy hereunder shall impair any right, power,
or remedy which Bank may have, nor shall any such delay be construed to be a
waiver of any of such rights, powers, or remedies, or any acquiescence in any
breach or default hereunder; nor shall any waiver by Bank of any breach or
default by Junior Creditor hereunder be deemed a waiver of any default or breach
subsequently occurring. All rights and remedies granted to Bank hereunder shall
remain in full force and effect notwithstanding any single or partial exercise
of, or any discontinuance of action begun to enforce, any such right or remedy.
The rights and remedies specified herein are cumulative and not exclusive of
each other or of any rights or remedies which Bank would otherwise have. Any
waiver, permit, consent or approval by Bank of any breach or default hereunder
must be in writing and shall be effective only to the extent set forth in such
writing and only as to that specific instance.

                  17.7  Counterparts. This Agreement may be signed in any number
of counterparts, each of which shall be an original, with the same effect as if
all signatures were upon the same instrument. Delivery of an executed
counterpart of the signature page to this Agreement by facsimile shall be
effective as delivery of a manually executed counterpart of this Agreement, and
any party delivering such an executed counterpart of the signature page to this
Agreement by facsimile to any other party shall thereafter also promptly deliver
a manually executed counterpart of this Agreement to such other party; provided;
however, that the failure to deliver such manually executed counterpart shall
not affect the validity, enforceability, or binding effect of this Agreement.

<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this
Subordination Agreement to be duly executed and delivered by their respective
officers hereunto duly authorized as of the date first above written

      /s/ Kumar Patel
----------------------------------
Kumar Patel in his capacity as
Sellers' Representative

THE DEVELOPMENT BANK OF SINGAPORE LTD.,
LOS ANGELES AGENCY

      /s/ Chee Kien, Ong
----------------------------------
By:  Chee Kien, Ong
Its: General Manager

<PAGE>

                          ACKNOWLEDGMENT AND AGREEMENT

            The undersigned duly authorized officer of Viko Technology, Inc., a
California corporation, does hereby accept and acknowledge receipt of a copy of
the foregoing Subordination Agreement, and agrees that (a) it will not pay any
of the Junior Debt except as the foregoing Subordination Agreement provides; (b)
it will be bound by all provisions of the foregoing Subordination Agreement (c)
it shall immediately notify Junior Creditor of an event of default on the Senior
Debt; and (d) that it will have no rights, remedies or priorities either
directly or as a third party beneficiary by virtue of the Subordination
Agreement.

            All capitalized terms used in this Acknowledgment and Agreement
without definition shall have the same meanings as set forth in the foregoing
Subordination Agreement.

            IN WITNESS WHEREOF, the undersigned has caused this Acknowledgment
and Agreement to be duly executed as of the day and year first above written.

VIKO TECHNOLOGY, INC.

      /s/ Kumar Patel
----------------------------------
By: ------------------------------
Its: President

<PAGE>

                                                                      DBS/G06/02

                                    GUARANTEE

1.    In consideration of The Development Bank of Singapore Ltd., Los Angeles
      Agency, a foreign banking corporation incorporated in Singapore, with an
      office at 445 South Figueroa Street, Suite 3550, Los Angeles, California,
      90071, United States of America, ("the Bank") agreeing to make available
      the loan facilities (the "Facilities") to Viko Technology, Inc., a company
      incorporated in California, United States of America and having its
      registered office at 1605A Mabury Road, San Jose, CA 95133 ("the
      Borrower") pursuant to the terms and conditions set out in a Term Loan and
      Revolving Credit Agreement dated as of 24 September, 2002 between the
      Borrower and the Bank (as such agreement may hereafter be amended,
      restated, supplemented or otherwise modified from time to time, the
      "Credit Agreement"), we, Infiniti Solutions Pte Ltd, a company
      incorporated in Singapore and having a registered office at 5001 Beach
      Road, #07-24 Golden Mile Complex Singapore (199588) ("the Guarantor")
      HEREBY IRREVOCABLY AND UNCONDITIONALLY guarantees to pay and satisfy the
      Bank on demand as principal debtor and not merely as surety all sums of
      money which are now or shall from time to time and at any time hereafter
      be due or owing to the Bank by the Borrower under the Credit Agreement
      (the "Guaranteed Money", which expression shall include any part thereof).
      Terms used and not otherwise defined herein shall have the meanings
      ascribed to such terms in the Credit Agreement).

2.    The Guarantor shall:

      (a)   maintain a consolidated gearing ratio not exceeding (i) 1.85 to 1.0
            as of 31 December 2002 and 30 June 2003, (ii) 1.75 to 1.0 as of 31
            December 2003 and 30 June 2004 and (iii) 1.50 to 1.0 as of 31
            December 2004 and as of the end of any covenant testing period
            thereafter. The consolidated gearing ratio is defined as the ratio
            of (i) Consolidated Total Liability of the Guarantor and its
            Subsidiaries net of payables to (i.i) the former shareholders of the
            Borrower under the Share Purchase Agreement dated December 18, 2001
            between the Guarantor and such shareholders and (i.ii) the existing
            shareholders of Automated Technology (Phil) Inc under the purchase
            consideration for the acquisition of the shares in Automated
            Technology (Phil) Inc when such acquisition takes place. to (ii)
            Consolidated Networth of the Guarantor and its Subsidiaries.
            Consolidated Networth shall include redeemable preference shares for
            periods up to 31 December 2005 only. The consolidated gearing
            covenant shall be tested on a semi-annual basis on every 30 June and
            31 December until the Guaranteed Money has been fully paid or
            satisfied;

      (b)   ensure that there is no significant change in the key management of
            the Guarantor until the Guaranteed Money has been fully paid or
            satisfied;

      (c)   ensure that sufficient funds in new equity are raised by the
            Guarantor for the payment of the cash components under the purchase
            consideration of the Borrower and Automated Technology (Phil) Inc.;

      (d)   ensure that any redemption of preference shares by the Guarantor
            shall not cause an event of default under the Borrower's credit
            facilities;

      (e)   give the Bank or an Affiliate thereof at least ten Business Days to
            match offers of other financial institutions in connection with the
            future debt financing needs of the Guarantor and any Affiliate
            thereof;

      (f)   give the Bank or an Affiliate thereof at least ten Business Days to
            match offers of other financial institutions in connection with the
            future fund raising needs of the Guarantor and any Affiliate thereof
            in equity markets where the Bank or an Affiliate has a strong
            presence;

      (g)   ensure that it is the legal and beneficial owner, direct or
            indirect, of all of the outstanding capital stock of the Borrower;

<PAGE>

      (h)   notify the Bank immediately in the event that there is a threatened
            action or proceeding (other than those of a frivolous or vexatious
            nature or those disputed promptly in good faith and by appropriate
            proceedings) affecting the Guarantor or its Subsidiaries before any
            Governmental Person, arbitrator or referee that could reasonably be
            expected to materially and adversely affect the financial condition
            or operations of the Guarantor or any of its Subsidiaries;

      (i)   file all income tax returns required to have been filed and pay all
            taxes, assessments, charges and other amounts due thereunder, except
            to the extent disputed by appropriate proceedings diligently pursued
            and to the extent that appropriate reserves are being maintained
            with respect to any amounts so disputed; and

      (j)   not amend or alter its memorandum and articles of association
            relating to its borrowing powers and its principal business
            activities without the prior written consent of the Bank, such
            consent not to be unreasonably withheld.

3.    This Guarantee shall not be considered as satisfied by any intermediate
      payment or satisfaction of the Guaranteed Money but shall be a continuing
      security and shall extend to cover all or any part of the Guaranteed Money
      which shall for the time being constitute the balance due or owing from
      the Borrower to the Bank upon any account or otherwise as aforesaid.

4.    The Bank may at any time and without affecting its rights against the
      Guarantor determine enlarge or vary any credit to the Borrower, vary
      exchange abstain from perfecting or release any other securities held or
      to be held by the Bank for or on account of the Guaranteed Money, open a
      fresh account or accounts and/or continue with any account or accounts
      current or otherwise with or for the Borrower renew bills and promissory
      notes in any manner and compound with give time for payment, accept
      compositions from and make any other arrangements with the Borrower or any
      obligors on bills notes or other securities held or to be held by the Bank
      for and on behalf of the Borrower.

5.    This Guarantee shall be in addition to and shall not be in any way
      prejudiced or affected by any collateral or other security now or
      hereafter held by the Bank for the Guaranteed Money nor shall such
      collateral or other security or any lien to which the Bank may be
      otherwise entitled or the liability of any person or persons not parties
      hereto for all or any part of the Guaranteed Money be in any way
      prejudiced or affected by this Guarantee. The Bank shall have full power
      at its discretion to give time for payment or to make any other
      arrangement with any such other person or persons without prejudice to
      this Guarantee or the Guarantor's liability hereunder. All monies received
      by the Bank from the Guarantor or the Borrower or any person or persons
      liable to pay the same may be applied by the Bank to any account or item
      of account or to any transaction which the same may be applicable.

6.    No disposition assurance security or payment which may be avoided under
      any law relating to bankruptcy or under any provisions of the Singapore
      Companies Act (Cap 50) or any statutory modification thereof or under any
      other applicable laws or is otherwise avoided in any manner and no release
      settlement or discharge which may have been given or made on the faith of
      any such disposition assurance security or payment shall prejudice or
      affect the Bank's right to recover from the Guarantor monies to the full
      extent of this Guarantee as if such disposition assurance security payment
      release settlement or discharge had never been granted given or made.

7.    All dividends compositions and monies received by the Bank from the
      Borrower or from any other company person or estate capable of being
      applied by the Bank in reduction of the indebtedness of the Borrower shall
      be regarded for all purposes as payments in gross and in the event of
      bankruptcy or winding up or any receiving order or other analogous order
      being made or any other analogous events occurring under any applicable
      laws in relation to the Borrower the Bank shall be entitled to prove in
      the bankruptcy winding up dissolution or liquidation of the Borrower in
      respect of the

                                       2
<PAGE>

      whole of the Borrower's indebtedness to the Bank and without any right of
      the Guarantor to be subrogated to the Bank in respect of any such proof
      until the Bank shall have received in the bankruptcy winding up or
      liquidation of the Borrower or from other sources one hundred (100) cents
      on the dollar.

8.    Any payments by the Guarantor hereunder shall be made without any set-off
      or counterclaim and shall be free and clear of any taxes including
      withholding taxes, import or levies. If the Guarantor is required to make
      any payment hereunder subject to the deduction or withholding of tax, the
      Guarantor shall increase the sum payable by it to the extent necessary to
      ensure that, after making the required deduction or withholding, the Bank
      receives and retains (free from any liability in respect of any such
      deduction or withholding) a net sum equal to the sum which it would have
      received and so retained had no such deduction or withholding been made or
      required to be made. The Guarantor shall thereafter submit all tax
      receipts or such evidence of payment of tax to the Bank as soon as
      reasonably practicable. In the event that the Bank actually receives the
      benefit of a tax credit, allowance or refund resulting solely and directly
      from a deduction or withholding in respect of which the Guarantor has paid
      an additional amount under this Clause, the Bank shall reimburse to the
      Guarantor such part of that benefit as, will leave it (after such
      reimbursement) in a position which is no more and no less favourable than
      the position in which it would have been if such deduction, withholding,
      payment or liability had not been made or incurred.

9.    If any goods and services tax ("GST" which expression includes any tax of
      a similar nature which may be substituted or levied in addition to it)
      whatsoever is now or hereafter chargeable by law on any payment hereunder,
      the Guarantor shall pay such GST in addition to all other sums payable
      hereunder or relating hereto and agrees to indemnify the Bank against the
      payment if the Bank is required by law to collect and make payment in
      respect of such GST. The Bank may debit the Guarantor's account(s) for
      such GST including default interest payable in the same manner as may be
      provided herein or in any agreement relating hereto for the Facilities
      and/or other charges or as the Bank may prescribe from time to time,
      notwithstanding such debiting may result in the Guarantor's account
      becoming overdrawn Provided that the Bank shall forthwith upon making such
      debit give notice thereof to the Guarantor.

10.   The Bank may but is not bound to resort for the Bank's own benefit to any
      other means of payment at any time and in any order the Bank deems fit
      without thereby diminishing the Guarantor's liability hereunder and the
      Bank may exercise its rights under this Guarantee in force either for
      payment of the ultimate balance after resorting to other means of payment
      or for the balance due notwithstanding that other means of payment have
      not been resorted to and in the latter case without entitling the
      Guarantor to any benefit from such other means of payment so long as the
      Guaranteed Money remains owing and unpaid by the Borrower to the Bank and
      in addition the Bank may require payment by the Guarantor of its liability
      without taking any proceedings first to enforce such payment by the
      Borrower.

11.   If any monies shall be paid by the Guarantor to the Bank under this
      Guarantee, the Guarantor shall not in respect of the amount so paid seek
      to enforce repayment or to exercise any other rights or legal remedies of
      whatsoever kind which may accrue howsoever to the Guarantor in respect of
      the amount so paid until the Guaranteed Money owing from the Borrower to
      the Bank has been fully paid to the Bank. The Guarantor will not prove in
      competition with the Bank for any monies owing by the Borrower to the
      Guarantor on any account whatsoever and/or in respect of any monies due or
      owing from the Borrower to the Bank but will give to the Bank the full
      benefit of any proof which the Guarantor may be able to make in the
      bankruptcy or winding up or liquidation of the Borrower or in any
      arrangement or composition with creditors until the Bank shall have
      received all monies guaranteed hereunder outstanding and remaining unpaid
      by the Borrower to the Bank.

12.   Any indebtedness of the Borrower now or hereafter held by the Guarantor
      shall be fully subordinated to the indebtedness of the Borrower to the
      Bank under the Credit Agreement and such indebtedness of the Borrower to
      the Guarantor if the Bank so requires shall be collected enforced

                                       3
<PAGE>

      and received by the Guarantor and shall be paid over to the Bank on
      account of the indebtedness of the Borrower to the Bank but without
      reducing or affecting in any manner the liability of the Guarantor under
      this Guarantee until all the Guaranteed Money has been fully paid to the
      Bank.

13.   The Guarantor agrees and acknowledges that the obligations and liabilities
      of the Guarantor hereunder shall be absolute and unconditional and in
      addition to the other provisions of this Guarantee, shall not be
      abrogated, prejudiced, affected or discharged:

      (a)   by the Bank granting explicitly or by conduct or otherwise, whether
            directly or indirectly, to the Borrower, the Guarantor or any other
            person of any time, forbearance, concession, credit compounding,
            compromise, waiver, variation, renewal, release, discharge or other
            advantage or indulgence;

      (b)   by the Bank failing neglecting or deciding not to recover the moneys
            hereby guaranteed or any part thereof by the realisation of any
            collateral or other security or in any manner otherwise or in the
            event of enforcement by the Bank of any collateral or other security
            or any remedy or otherwise, by any act, omission, negligence or
            other conduct or failure on the part of the Bank or any other person
            in connection therewith;

      (c)   by any laches, acquiescence, delay, acts, omissions, mistakes on the
            part of the Bank or any other person;

      (d)   by reason of any agreement, deed, mortgage, charge, debenture,
            guarantee indemnity or security held or taken at any time by the
            Bank or by reason of the same being void, voidable or unenforceable;

      (e)   by any moratorium or other period staying or suspending by statute
            or order of any court or other authority all or any of the Bank's
            rights, remedies or recourse against the Borrower or the Guarantor;

      (f)   by reason of any other dealing, matter or thing which, but for the
            provisions of this Clause, could or might operate to affect or
            discharge all or any part of the obligations and liabilities of the
            Guarantor hereunder; or

      (g)   by the Bank asserting or failing to assert any right or remedy
            against the Borrower or doing or omitting to do any act in pursuance
            of any authority or permission contained in this Guarantee.

14.   The Guarantor declares it has not taken and undertakes not to take
      directly or indirectly from the Borrower in respect of its liability and
      obligation hereunder any security of any nature whatsoever whereby the
      Guarantor or any person claiming under it might in the Borrower's
      bankruptcy or winding-up or liquidation increase the proofs in such
      bankruptcy or liquidation or diminish the property available for
      distribution to the Bank's detriment.

15.   For the consideration aforesaid and as a separate and independent
      stipulation:

      (a)   the Guarantor agrees that all sums of money which may not be
            recoverable from the Guarantor on the footing of a guarantee whether
            by reason of any legal limitation disability or incapacity including
            without limitation the bankruptcy or winding-up or liquidation or
            any other analogous events in relation to the Borrower under any
            other applicable laws or any other fact or circumstance whether
            known to the Bank or not shall nevertheless be recoverable from the
            Guarantor on demand as though the Guarantor was the sole and
            principal debtor;

      (b)   the Guarantor irrevocably and unconditionally undertakes to
            indemnify the Bank on a full indemnity basis against all reasonable
            legal costs between solicitors and clients and other costs and
            disbursements incurred for or in connection with demanding and
            enforcing

                                       4
<PAGE>

            payment of all monies guaranteed hereunder or otherwise howsoever in
            enforcing this Guarantee and/or the covenants agreements
            undertakings stipulations terms and conditions of this Guarantee.

      (c)   the Guarantor agrees to furnish and provide the Bank with and
            permits the Bank to obtain all such statements information
            explanation and data as the Bank may reasonably require from time to
            time regarding the operations and financial affairs of the
            Guarantor. The Guarantor hereby agrees and undertakes to furnish to
            the Bank (i) every fiscal quarter immediately after their issue, but
            in any case not later than 90 days after the end of each fiscal
            quarter, unaudited consolidated financial statements of the
            Guarantor for such quarter, including a balance sheet, income
            statement and cash flow statement and (ii) every year immediately
            after their issue, but in any case not later than 120 days after the
            close of its financial year, (A) the audited annual consolidated
            financial statements of the Guarantor, including a balance sheet,
            income statement and cash flow statement, audited by a firm of
            auditors approved by the Bank together with auditors' and directors'
            reports and (B) a copy of the annual return which the Guarantor is
            required by law to file with the Registrar of Companies.

16.   A statement or certificate signed by the Manager Accountant or other
      officer of the Bank as to the monies and liabilities for the time being
      due to or incurred by the Bank (and setting out the computation and basis
      thereof) shall subject only to computational and/or clerical mistakes be
      final and conclusive and be binding on the Guarantor.

17.   This Guarantee shall continue to bind the Guarantor notwithstanding :

      (a)   any change by amalgamation reconstruction or otherwise which may be
            made in the constitution of the company by which the business of the
            Bank may for the time being be carried on and shall be available to
            the company carrying on the business of the Bank for the time being;
            or

      (b)   any winding-up (whether voluntary or compulsory) amalgamation or
            reconstruction of or affecting the Borrower or any defect
            informality or insufficiency of the Borrower's borrowing powers; or

      (c)   any winding-up (whether voluntary or compulsory) amalgamation or
            reconstruction of or affecting the Guarantor.

18.   The Guarantor shall, immediately upon any occurrence of the following:

      (i)   the giving of notice by the Guarantor to convene its general meeting
            for passing any resolution to wind up the Guarantor; or

      (ii)  the filing of any application for placing the Guarantor under
            judicial management; or

      (iii) the filing of any petition for winding up the Guarantor.

      notify the Bank of the same.

      Where any such notification as aforesaid is given verbally by the
      Guarantor to the Bank, the Guarantor shall confirm it in writing within
      twenty-four (24) hours thereof.

19.   The Guarantor shall not be discharged or released from this Guarantee by
      any alteration in the obligations covenants undertakings stipulations
      terms and conditions governing the Facilities ("the Terms"). The Bank may
      from time to time vary, or add to the Terms and this Guarantee shall
      extend and apply to the Terms varied or added to (notwithstanding such
      variations or additions may impose further liabilities or more onerous
      covenants undertakings or burdens on the Borrower) notwithstanding the
      Guarantor shall not have received notice or been made aware of or
      consented to

                                       5
<PAGE>

      such variations of or additions to the Terms Provided that the Bank shall
      forthwith upon effecting such variation or addition (as the case may be)
      give notice thereof to the Guarantor..

20.   Any demand for payment of monies or any other demand or notice under this
      Guarantee may be made by any officer of the rank of Assistant Treasurer
      and above or any Secretary Manager Accountant Legal Officer or by any
      person or firm acting as solicitors for the Bank by a letter addressed to
      the Guarantor and sent by registered post or delivered to the address
      abovestated and a notice or demand so served shall be deemed to be served
      and received on the day it was so left or the 3rd day from the date it is
      posted (where the Guarantor's address is in Singapore) or 7 days after
      posting (where the Guarantor's address is outside Singapore), as the case
      may be.

21.   The Guarantor may not determine or revoke this Guarantee unless the Bank
      receives notice of its intention to revoke this Guarantee and agrees in
      writing, and the Guarantor makes full provision for any other outstanding
      liabilities or obligations to the Bank of the Borrower's account
      guaranteed hereunder and not unless the Guaranteed Money is paid to the
      Bank in full.

22.   In addition to any lien right of set-off or other right which the Bank may
      have the Bank shall be entitled at any time upon the Guarantor's failure
      to pay the Guaranteed Money or any part thereof pursuant to a declaration
      of an Event of Default pursuant to Clause 6.1 of the Credit Agreement and
      without prior notice to the Borrower or the Guarantor to combine or
      consolidate all or any of the accounts and liabilities of the Borrower or
      the Guarantor with or to the Bank anywhere whether in or outside Singapore
      or set-off or transfer any sums standing to the credit of one or more of
      such accounts in or towards satisfaction of any of the liabilities of the
      Borrower or the Guarantor to the Bank on any other accounts whether in or
      outside Singapore or in any other respect whether such liabilities be
      actual or contingent primary or collateral several or joint
      notwithstanding that the credit balances on such accounts and the
      liabilities on any other accounts may not be expressed in the same
      currency and the Bank is hereby authorised to effect any necessary
      conversions at the Bank's prevailing rate of exchange Provided that the
      Bank shall forthwith upon effecting such application or conversion (as the
      case may be) give notice thereof to the Guarantor.

23.   In addition and without prejudice to any right or remedies of the Bank
      under this Guarantee or by law conferred upon the Bank, the Bank may from
      time to time and at any time upon the Guarantor's failure to pay the
      Guaranteed Money or any part thereof pursuant to a declaration of an Event
      of Default pursuant to Clause 6.1 of the Credit Agreement, debit to any
      account of the Guarantor with the Bank, whether the account be current or
      otherwise, all or any part of the Guaranteed Money and the sums so debited
      shall be deemed to be monies advanced by the Bank to the Guarantor on the
      Guarantor's account and payable on demand Provided that the Bank shall
      forthwith upon making such debit give notice thereof to the Guarantor.

24.   In addition and without prejudice to any other rights of the Bank under
      the loan and security documents relating to the Facilities, if this
      Guarantee or any other security for the Facilities is terminated, or for
      any other reason which the Bank deems justifiable, the Bank may forthwith
      open a new or separate interest-bearing account ("the new account") for
      the Borrower in the Bank's books with a view to preserving the rights of
      the Bank to prove the whole of the moneys owing by the Borrower and if the
      Bank does not in fact open such new account it shall nevertheless be
      deemed to have done so at the time of such termination and as from and
      after the time that the new account was opened or so deemed to have been
      opened, all payments made by or on behalf of the Borrower shall
      (notwithstanding any legal or equitable rule of presumption to the
      contrary) be credited or deemed to have been credited to the new account
      and shall not go to reduce the amount owing by the Borrower to the Bank at
      the time the new account was opened or deemed to have been opened, unless
      the Bank expressly directs otherwise after all sums (actual or contingent)
      owing to the Bank under the new account have been paid and satisfied to
      the Bank in full or at any other time. For the avoidance of doubt, if a
      payment which would (but for this Clause) have been applied in the
      reduction of the Guaranteed Money is instead credited to a new account of
      the

                                       6
<PAGE>

      Borrower under this Clause, then for the purpose of calculating interest
      on the Guaranteed Money, the Guaranteed Money shall be deemed to have been
      reduced by the amount of that payment

25.   In addition to the rights conferred by any applicable laws, the Guarantor
      consents to the Bank disclosing any information relating to this Guarantee
      where such disclosure may be required under any applicable law or
      regulation or by any governmental authority or body with whose requests
      the Bank is accustomed to or required to comply.

26.   (a)   Without prejudice to the other provisions of this Guarantee any
            amount received or recovered by the Bank in a currency other than
            the contractual currency whether as a result of or of the
            enforcement of a judgment or order of court or tribunal of any
            jurisdiction in the dissolution of the Borrower and/or the Guarantor
            or otherwise, shall only constitute a discharge to the extent of the
            amount in the contractual currency which the Bank is able in
            accordance with its usual practice to purchase with the amount so
            received or recovered in such other currency on the date of that
            receipt or recovery (or if it is not practicable to make that
            purchase on that date on the first date on which it is practicable
            to do so).

      (b)   If that amount in the contractual currency is less than the amount
            in the contractual currency due to the Bank by the Borrower, the
            Guarantor shall indemnify the Bank against any loss sustained by the
            Bank as a result. In any event, the Guarantor shall indemnify the
            Bank against the cost of making any such purchase.

      (c)   These indemnities constitute a separate and independent obligation
            from the other obligations in this Guarantee and shall give rise to
            a separate and independent cause of action.

27.   (a)   This Guarantee shall be governed by and construed in all respects in
            accordance with the laws of Singapore and shall be subject to the
            non-exclusive jurisdiction of the courts of Singapore. The Guarantor
            hereby agrees that where any actions or proceedings are initiated
            and taken in Singapore the Guarantor shall submit to the
            jurisdiction of the courts of Singapore. The service of any writ of
            summons or any legal process in respect of any action or proceeding
            hereunder may be effected on the Guarantor by forwarding a copy of
            the writ of summons and statement of claim or other legal process by
            registered post to the address of the Guarantor hereinbefore stated.

      (b)   To the extent that the Guarantor may in any jurisdiction claim for
            itself or its assets immunity from suit, execution, attachment
            (whether in aid of execution, before judgment or otherwise) or other
            legal process and to the extent in any such jurisdiction there may
            be attributed to itself or its assets such immunity whether on
            grounds of sovereignty or otherwise (whether or not claimed), the
            Guarantor irrevocably agrees not to claim and irrevocably waives
            such immunity to the full extent permitted by the laws of such
            jurisdiction. The Guarantor irrevocably agrees and undertakes that
            it and its assets are, and shall be subject to any proceedings
            attachment or execution in respect of its obligations under this
            Guarantee.

      (c)   The Guarantor irrevocably consents in respect of any proceedings
            anywhere to the giving of any relief or the issue of any process in
            connection with those proceedings including, without limitation, the
            making, enforcement or execution against any assets whatsoever
            (irrespective of the use or intended use) of any order or judgment
            which may be made or given in those proceedings.

28.   The Guarantor may not assign its rights nor transfer its obligations or
      any part thereof under this Guarantee without the prior written consent of
      the Bank (such consent not to be unreasonably withheld). The Bank shall at
      its own cost be entitled to assign or transfer any part or all of its
      rights and or obligations under this Guarantee to any person in favour of
      whom it has assigned any part or

                                       7
<PAGE>

      all of its rights or transferred any part or all of its obligations under
      the Term Loan and Revolving Credit Agreement.

29.   In the event that the Guarantor or its Subsidiaries is in default of the
      payment of insurance premiums, legal fees, property taxes or any other
      out-of-pocket expenses, the Bank may in its sole and absolute discretion
      pay such amounts and the Guarantor agrees to reimburse the Bank for such
      amounts, together with interest on such amounts from the date that the
      Bank paid such amounts until the date on which such amounts are paid in
      full, payable on demand, at an interest per annum equal to the Prime Rate
      plus 5% per annum. In the event that the amount of such interest is less
      than $250, the Guarantor will pay the Bank an administrative charge of
      $250 rather than the amount of such interest Provided that the Bank shall
      notify the Guarantor of the amount payable by the Guarantor under this
      Clause and shall in such notification set out the computation and basis of
      such amount.

30.   In this Guarantee where the context so admits :

      (a)   words importing the singular number include the plural number and
            vice versa;

      (b)   words importing the masculine gender include the feminine or neuter
            gender;

      (c)   the expression "the Guarantor" includes the personal representatives
            and successors-in-title of the Guarantor;

      (d)   the expression "the Bank" and "the Borrower" include their
            respective successors and assigns; and

      (e)   the word "person" includes any company or association or body of
            persons, corporate or unincorporated.

31.   Third Party Rights. The Contracts (Rights of Third Parties) Act (Chap 53B)
      shall not apply to this Guarantee and no person not party to this
      Guarantee shall have or acquire any right to enforce any term of it
      pursuant to that Act. This Clause shall not affect any right or remedy of
      any third party which exists or is available otherwise than by reason of
      that Act and shall prevail over any other provision of this Guarantee
      which is inconsistent with it.

IN WITNESS WHEREOF the Guarantor has hereunto affixed its Common Seal on the 27
day of September 2002.

The Common Seal of                    )
Infiniti Solutions Pte Ltd            )              /s/ Inderjit Singh
was hereunto affixed                  )
in the presence of                    )

                                                     - Director

                                                     /s/ Kong Kah Chin

                                                     - Secretary

      I, Tan Shu Fern , a Notary Public of the Supreme Court of the Republic of
Singapore practising in the Republic of Singapore hereby certify that on the 27
day of September 2002 the Common Seal of Infiniti Solutions Pte Ltd was duly
affixed to the within written instrument at Singapore in my presence in
accordance with the regulations of the said company (which regulations have been
produced and shown to me).

      Witness my hand this 27 day of September 2002. /s/ Tan Shu Fern, Advocate
and Solicitor, Singapore

                                       8

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