Document:

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                                  EXHIBIT 10.1

                                     For Bank Use Only , Reviewed by
                                     Due JANUARY 18,2008
                                     Customer #  1105510939         Loan #

                       INSTALLMENT OR SINGLE PAYMENT NOTE

$ 1,000,000.00  JANUARY 18, 2007
FOR VALUE RECEIVED, the undersigned borrower (the "Borrower"), promises to pay
to the order of U. S. BANK N. A. (the "Bank"), the principal sum of ONE MILLION
AND NO/100_ Dollars ($ 1,000,000.00) (the "Loan Amount").

1. TERMS FOR ADVANCE(S). [CHOOSE ONE:]

     ___  SINGLE ADVANCE.

     X    MULTIPLE ADVANCES. Prior to JANUARY 18,2008 or the earlier termination
          hereof, the Borrower may obtain advances from the Bank under this
          Installment or Single Payment Note (the "NOTE") in an aggregate amount
          not exceeding the Loan Amount. Although this Note is expressed as
          payable in the full Loan Amount, the Borrower will be obligated to pay
          only the amounts actually disbursed hereunder, together with accrued
          interest on the outstanding balance at the rates and on the dates
          specified therein and such other charges provided for herein.

2. INTEREST.
The unpaid principal balance will bear interest at an annual rate described in
the Interest Rate Rider attached to this Note.

3. PAYMENT SCHEDULE.
Interest is payable beginning FEBRUARY 18, 2007, and on the same date of each
consecutive month thereafter (except that if a given month does not have such a
date, the last day of such month), plus a final interest payment with the final
payment of principal.

Principal is payable on JANUARY 18, 2008.

4. CLOSING FEE. If checked here, the Borrower will pay the Bank a one-time
closing fee of $ n/a contemporaneously with execution of this Note. This fee is
in addition to all other fees, expenses and other amounts due hereunder.

5. LATE PAYMENT FEE. Subject to applicable law, if any payment is not made on or
before its due date, the Bank may collect a delinquency charge of 5.00% of the
unpaid amount. Collection of the late payment fee shall not be deemed to be a
waiver of the Bank's right to declare a default hereunder.

6. CALCULATION OF INTEREST. Interest will be computed for the actual number of
days principal is unpaid, using a daily factor obtained by dividing the stated
interest rate by 360.

7. DEFAULT INTEREST RATE. Notwithstanding any provision of this Note to the
contrary, upon any default or at any time during the continuation thereof
(including failure to pay upon maturity), the Bank may, at its option and
subject to applicable law, increase the interest rate on this Note to a rate of
5% per annum plus the interest rate otherwise payable hereunder. Notwithstanding
the foregoing and subject to applicable law, upon the occurrence of a default by
the Borrower or any guarantor involving bankruptcy, insolvency, receivership
proceedings or an assignment for the benefit of creditors, the interest rate on
this Note shall automatically increase to a rate of 5% per annum plus the rate
otherwise payable hereunder.

8. MAXIMUM RATE. In no event will the interest rate hereunder exceed that
permitted by applicable law. If any interest or other charge is finally
determined by a court of competent jurisdiction to exceed the maximum amount
permitted by law, the interest or charge shall be reduced to the maximum
permitted by law, and the Bank may credit any excess amount previously collected
against the balance due or refund the amount to the Borrower.

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9. ADDITIONAL TERMS.

10. FINANCIAL INFORMATION. The Borrower will (i) maintain accounting records in
accordance with generally recognized and accepted principles of accounting
consistently applied throughout the accounting periods involved; (ii) provide
the Bank with such information concerning its business affairs and financial
condition (including insurance coverage) as the Bank may reasonably request; and
(iii) without request, provide the Bank with annual financial statements
prepared by an accounting firm acceptable to the Bank within 120 days of the end
of each fiscal year.

11. CREDIT BALANCES; SETOFF. As additional security for the payment of the
obligations described in this Note or any document securing or related to the
loan evidenced by this Note (collectively the "LOAN DOCUMENTS",) and any other
obligations of the Borrower to the Bank of any nature whatsoever (collectively
the "OBLIGATIONS"), the Borrower hereby grants to the Bank a security interest
in, a lien on and an express contractual right to set off against all depository
account balances, cash and any other property of the Borrower now or hereafter
in the possession of the Bank and the right to refuse to allow withdrawals from
any account (collectively "SETOFF"). The Bank may, at any time upon the
occurrence of a default hereunder (notwithstanding any notice requirements or
grace/cure periods under this or other agreements between the Borrower and the
Bank) Setoff against the Obligations WHETHER OR NOT THE OBLIGATIONS (INCLUDING
FUTURE INSTALLMENTS) ARE THEN DUE OR HAVE BEEN ACCELERATED, ALL WITHOUT ANY
ADVANCE OR CONTEMPORANEOUS NOTICE OR DEMAND OF ANY KIND TO THE BORROWER, SUCH
NOTICE AND DEMAND BEING EXPRESSLY WAIVED.

12. ADVANCES AND PAYING PROCEDURE. The Bank is authorized and directed to credit
any of the Borrower's accounts with the Bank (or to the account the Borrower
designates in writing) for all loans made hereunder, and the Bank is authorized
to debit such account or any other account of the Borrower with the Bank for the
amount of any principal, interest or expenses due under the Note or other amount
due hereunder on the due date with respect thereto. Payments due under the Note
and other Loan Documents will be made in lawful money of the United States. All
payments may be applied by the Bank to principal, interest and other amounts due
under the Loan Documents in any order which the Bank elects. If, upon any
request by the Borrower to the Bank to issue a wire transfer, there is an
inconsistency between the name of the recipient of the wire and its
identification number as specified by the Borrower, the Bank may, without
liability, transmit the payment via wire based solely upon the identification
number.

13. DEFAULTS. NOTWITHSTANDING ANY CURE PERIODS DESCRIBED BELOW, THE BORROWER
SHALL IMMEDIATELY NOTIFY THE BANK IN WRITING WHEN THE BORROWER OBTAINS KNOWLEDGE
OF THE OCCURRENCE OF ANY DEFAULT SPECIFIED BELOW. Regardless of whether the
Borrower has given the required notice, the occurrence of one or more of the
following shall constitute a default:

     (a)  NONPAYMENT. The Borrower shall fail to pay (i) any interest due on
          this Note or any fees, charges, costs or expenses under the Loan
          Documents by 5 days after the same becomes due; or (ii) any principal
          amount of this Note when due.
     (b)  NONPERFORMANCE. The Borrower or any guarantor of the Borrower's
          Obligations to the Bank ("GUARANTOR") shall fail to perform or observe
          any agreement, term, provision, condition, or covenant (other than a
          default occurring under (a), (c), (d), (e), (f) or (g) of this
          paragraph 13) required to be performed or observed by the Borrower or
          any Guarantor hereunder or under any other Loan Document or other
          agreement with or in favor of the Bank.
     (c)  MISREPRESENTATION. Any financial information, statement, certificate,
          representation or warranty given to the Bank by the Borrower or any
          Guarantor (or any of their representatives) in connection with
          entering into this Note or the other Loan Documents and/or any
          borrowing thereunder, or required to be furnished under the terms
          thereof, shall prove untrue or misleading in any material respect (as
          determined by the Bank in the exercise of its judgment) as of the time
          when given.
     (d)  DEFAULT ON OTHER OBLIGATIONS. The Borrower or any Guarantor shall be
          in default under the terms of any loan agreement, promissory note,
          lease, conditional sale contract or other agreement, document or
          instrument evidencing, governing or securing any indebtedness owing by
          the Borrower or any Guarantor to the Bank or any indebtedness in
          excess of $10,000 owing by the Borrower to any third party, and the
          period of grace, if any, to cure said default shall have passed.
     (e)  JUDGMENTS. Any judgment shall be obtained against the Borrower or any
          Guarantor which, together with all other outstanding unsatisfied
          judgments against the Borrower (or such Guarantor), shall exceed the
          sum of $10,000 and shall remain unvacated, unbonded or unstayed for a
          period of 30 days following the date of entry thereof.

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     (f)  INABILITY TO PERFORM; BANKRUPTCY/INSOLVENCY. (i) The Borrower or any
          Guarantor shall die or cease to exist; or (ii) any Guarantor shall
          attempt to revoke any guaranty of the Obligations described herein, or
          any guaranty becomes unenforceable in whole or in part for any reason;
          or (iii) any bankruptcy, insolvency or receivership proceedings, or an
          assignment for the benefit of creditors, shall be commenced under any
          Federal or state law by or against the Borrower or any Guarantor, or
          (iv) the Borrower or any Guarantor shall become the subject of any
          out-of-court settlement with its creditors; or (v) the Borrower or any
          Guarantor is unable or admits in writing its inability to pay its
          debts as they mature: or (vi) if the Borrower is a limited liability
          company, any member thereof shall withdraw or otherwise become
          disassociated from the Borrower.
     (g)  ADVERSE CHANGE: INSECURITY; (i) There is a material adverse change in
          the business, properties, financial condition or affairs of the
          Borrower or any Guarantor, or in any collateral securing the
          Obligations: or (ii) the Bank in good faith deems itself insecure.

14. TERMINATION OF LOANS; ADDITIONAL BANK RIGHTS. Upon the occurrence of any of
the events identified in paragraph 13, the Bank may at any time (notwithstanding
any notice requirements or grace/cure periods under this or other agreements
between the Borrower and the Bank) (i) immediately terminate its obligation, if
any, to make additional loans to the Borrower; (ii) Setoff; and/or (iii) take
such other steps to protect or preserve the Bank's interest in any collateral,
including without limitation, notifying account debtors to make payments
directly to the Bank, advancing funds to protect any collateral and insuring
collateral at the Borrower's expense; all without demand or notice of any kind,
all of which are hereby waived.

15. ACCELERATION OF OBLIGATIONS. Upon the occurrence of any of the events
identified in paragraph 13(a) through 13(e) and 13(g), and the passage of any
applicable cure periods, the Bank may at any time thereafter, by written notice
to the Borrower, declare the unpaid principal balance of any Obligations,
together with the interest accrued thereon and other amounts accrued hereunder
and under the other Loan Documents, to be immediately due and payable; and the
unpaid balance shall thereupon be due and payable, all without presentation,
demand, protest or further notice of any kind, all of which are hereby waived,
and notwithstanding anything to the contrary contained herein or in any of the
other Loan Documents. Upon the occurrence of any event under paragraph 13(f),
the unpaid principal balance of any Obligations, together with all interest
accrued thereon and other amounts accrued hereunder and under the other Loan
Documents, shall thereupon be immediately due and payable, all without
presentation, demand, protest or notice of any kind, all of which are hereby
waived, and notwithstanding anything to the contrary contained herein or in any
of the other Loan Documents. NOTHING CONTAINED IN PARAGRAPH 13 OR 14 OR THIS
PARAGRAPH SHALL LIMIT THE BANK'S RIGHT TO SETOFF AS PROVIDED IN THIS NOTE.

16. COLLATERAL. This Note is secured by any and all security interests, pledges,
mortgages/deeds of trust (except any mortgage/deed of trust expressly limited by
its terms to a specific obligation of Borrower to Bank) or liens now or
hereafter in existence granted to the Bank to secure indebtedness of the
Borrower to the Bank (unless prohibited by law), including, without limitation,
as described in the following documents: Security Agreement dated 12/31/01.

17. GUARANTIES. This Note is guarantied by each and every guaranty now or
hereafter in existence guarantying the indebtedness of the Borrower to the Bank
(except for any guaranty expressly limited by its terms to a specific separate
obligation of Borrower to the Bank) including, without limitation, the
following:

18. ADDITIONAL BANK RIGHTS. Without affecting the liability of any Borrower,
endorser, surety or guarantor, the Bank may, without notice, renew or extend the
time for payment, accept partial payments, release or impair any collateral
security for the payment of this Note, or agree not to sue any party liable on
it.

19. WARRANTIES. The Borrower makes the following warranties: (A) This Note and
the other Loan Documents are the legal, valid and binding obligations of the
Borrower, enforceable against the Borrower in accordance with their terms. (B)
The execution, delivery and performance of this Note and all other Loan
Documents to which the Borrower is a party (i) are within the borrower's power;
(ii) have been duly authorized by all appropriate entity action; (iii) do not
require the approval of any governmental agency; and (iv) will not violate any
law, agreement or restriction by which the Borrower is bound. (C) If the
Borrower is not an individual, the Borrower is validly existing and in good
standing under the laws of its state of organization, has all requisite power
and authority and possesses all licenses necessary to conduct its business and
own its properties.

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20. WAIVERS; RELATIONSHIP to Other Documents. All Borrowers, endorsers, sureties
and guarantors waive presentment, protest, demand, and notice of dishonor. No
delay on the part of the Bank in exercising any right, power or privilege
hereunder or under any of the other Loan Documents will operate as a waiver
thereof, nor will any single or partial exercise of any right, power or
privilege hereunder preclude other or further exercise thereof or the exercise
of any other right, power or privilege. The warranties, covenants and other
obligations of the Borrower (and rights and remedies of the Bank) in this Note
and all related documents are intended to be cumulative and to supplement each
other.

21. EXPENSES AND ATTORNEYS' FEES. Upon demand, the Borrower will immediately
reimburse the Bank and any participant in the Obligations ("PARTICIPANT") for
all attorneys' fees and all other costs, fees and out-of-pocket disbursements
incurred by the Bank or any Participant in connection with the preparation,
execution, delivery, administration, defense and enforcement of this Note or any
of the other Loan Documents, including attorneys' fees and all other costs and
fees (a) incurred before or after commencement of litigation or at trial, on
appeal or in any other proceeding, (b) incurred in any bankruptcy proceeding and
(c) related to any waivers or amendments with respect thereto (examples of costs
and fees include but are not limited to fees and costs for: filing, perfecting
or confirming the priority of the Bank's lien, title searches or insurance,
appraisals, environmental audits and other reviews related to the Borrower, any
collateral or the loans, if requested by the Bank). The Borrower will also
reimburse the Bank and any Participant for all costs of collection before and
after judgment, and the costs of preservation and/or liquidation of any
collateral.

22. APPLICABLE LAW AND JURISDICTION; INTERPRETATION; JOINT Liability;
Severability. This Note and all other Loan Documents shall be governed by and
interpreted in accordance with the internal laws of the State of California
except to the extent superseded by Federal law. THE BORROWER HEREBY CONSENTS TO
THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT SITUATED IN THE COUNTY
OR FEDERAL JURISDICTION OF THE BANK'S BRANCH WHERE THE LOAN WAS ORIGINATED, AND
WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, WITH REGARD TO ANY ACTIONS,
CLAIMS, DISPUTES OR PROCEEDINGS RELATING TO THIS NOTE, THE COLLATERAL, ANY OTHER
LOAN DOCUMENT, OR ANY TRANSACTIONS ARISING THEREFROM, OR ENFORCEMENT AND/OR
INTERPRETATION OF ANY OF THE FOREGOING. Nothing herein shall affect the Bank's
rights to serve process in any manner permitted by law, or limit the Bank's
right to bring proceedings against the Borrower in the competent courts of any
other jurisdiction or jurisdictions. This Note, the other Loan Documents and any
amendments hereto (regardless of when executed) will be deemed effective and
accepted only upon the Bank's receipt of the executed originals thereof. If
there is more than one Borrower, the liability of the Borrowers shall be joint
and several, and the reference to "Borrower" shall be deemed to refer to all
Borrowers. Invalidity of any provision of this Note shall not affect the
validity of any other provision.

23. SUCCESSORS. The rights, options, powers and remedies granted in this Note
and the other Loan Documents shall be binding upon the Borrower and the Bank and
their respective successors and assigns, and shall inure to the benefit of the
Borrower and the Bank and the successors and assigns of the Bank, including
without limitation any purchaser of any or all of the rights and obligations of
the Bank under the Note and the other Loan Documents. The Borrower may not
assign its rights or obligations under this Note or any other Loan Documents
without the prior written consent of the Bank.

24. DISCLOSURE. The Bank may, in connection with any sale or potential sale of
all or any interest in the Note and other Loan Documents, disclose any financial
information the Bank may have concerning the Borrower to any purchaser or
potential purchaser. From time to time, the Bank may, in its discretion and
without obligation to the Borrower, any Guarantor or any other third party,
disclose information about the Borrower and this loan to any Guarantor, surety
or other accommodation party. This provision does not obligate the Bank to
supply any information or release the Borrower from its obligation to provide
such information, and the Borrower agrees to keep all Guarantors, sureties or
other accommodation parties advised of its financial condition and other matters
which may be relevant to their obligations to the Bank.

25. COPIES; ENTIRE AGREEMENT; MODIFICATION. The Borrower hereby acknowledges the
receipt of a copy of this Note and all other Loan Documents. This Note is a
"transferable record" as defined in applicable law relating to electronic
transactions. Therefore, the holder of this Note may, on behalf of Borrower,
create a microfilm or optical disk or other electronic image of this Note that
is an authoritative copy as defined in such law. The holder of this Note may
store the authoritative copy of such Note in its electronic form and then
destroy the paper original as part of the holder's normal business practices.
The holder, on its own behalf, may control and transfer such authoritative copy
as permitted by such law.

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IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ
CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING, EXPRESSING CONSIDERATION AND
SIGNED BY THE PARTIES ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT
CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. THE TERMS OF THIS
AGREEMENT MAY ONLY BE CHANGED BY ANOTHER WRITTEN AGREEMENT. THIS NOTICE SHALL
ALSO BE EFFECTIVE WITH RESPECT TO ALL OTHER CREDIT AGREEMENTS NOW IN EFFECT
BETWEEN BORROWER AND THE BANK. A MODIFICATION OF ANY OTHER CREDIT AGREEMENTS NOW
IN EFFECT BETWEEN BORROWER AND THE BANK, WHICH OCCURS AFTER RECEIPT BY BORROWER
OF THIS NOTICE, MAY BE MADE ONLY BY ANOTHER WRITTEN INSTRUMENT. ORAL OR IMPLIED
MODIFICATIONS TO SUCH CREDIT AGREEMENTS ARE NOT ENFORCEABLE AND SHOULD NOT BE
RELIED UPON.

26. WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY LAW, THE BORROWER AND THE
BANK HEREBY JOINTLY AND SEVERALLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY ACTION OR PROCEEDING RELATING TO ANY OF THE LOAN DOCUMENTS, THE OBLIGATIONS
THEREUNDER, ANY COLLATERAL SECURING THE OBLIGATIONS, OR ANY TRANSACTION ARISING
THEREFROM OR CONNECTED THERETO. THE BORROWER AND THE BANK EACH REPRESENTS TO THE
OTHER THAT THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY GIVEN.

27. ATTACHMENTS. ALL DOCUMENTS ATTACHED HERETO, INCLUDING ANY APPENDICES,
SCHEDULES, RIDERS, AND EXHIBITS TO THIS INSTALLMENT OR SINGLE PAYMENT NOTE, ARE
HEREBY EXPRESSLY INCORPORATED BY REFERENCE.

(Individual Borrower)          Hi-Shear Technology Corporation
                               Borrower Name (Organization)

                               a Delaware Corporation

Borrower Name   N/A            By /s/ George W. Trahan
                               Name and Title:  George W. Trahan, President/CEO

Borrower Name   N/A            By /s/ Gregory J. Smith
                               Name and Title:  Gregory J. Smith, VP Finance/CFO

Borrower Address:  24225 Garnier St, Torrance, CA 90505
Borrower Telephone No.:

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U.S. BANK                                                             1105510939

                                ADDENDUM TO NOTE

     This Addendum is made part of the Installment or Single Payment Note dated
as of the date of this Addendum (the "NOTE") by the undersigned borrower (the
"BORROWER") in favor of U. S. BANK N.A. (the "BANK") in the original principal
amount of $ 1,000,000.00. The warranties, covenants and other terms described
below are hereby added to the Note.

          INCORPORATION OF LOAN AGREEMENT. Borrower and Bank entered
          into a loan agreement dated MARCH 23, 2000 (as amended,
          extended, or restated from time to time, the "LOAN
          AGREEMENT") which Loan Agreement remains in full force and
          effect and is incorporated in its entirety herein by
          reference as though fully set forth herein. The warranties,
          covenants and other obligations of Borrower (and the rights
          and remedies of Bank) that are outlined in the Note and the
          Loan Agreement are intended to supplement each other. In the
          event of any inconsistencies in any of the terms of the Note
          and the Loan Agreement, all terms will be cumulative so as
          to give Bank the most favorable rights set forth in the
          conflicting documents, except that if there is a direct
          conflict between the Note and the Loan Agreement, the terms
          of the Note shall control as to the loan covered by the Note
          and the terms of the Loan Agreement shall control as to the
          loans specifically covered by the Loan Agreement. The
          provisions of the Loan Agreement shall continue in full
          force and effect with respect to the Note notwithstanding
          termination of the Loan Agreement subsequent to the date
          hereof unless the documentation terminating the Loan
          Agreement expressly states that the representations,
          warranties and covenants of the Borrower as set forth in the
          Loan Agreement no longer apply to the Note. The Note is in
          addition to any notes referred to in the Loan Agreement.

Dated as of January 18, 2007

(Individual Borrower)          Hi-Shear Technology Corporation
                               Borrower Name (Organization)

Borrower Name   n/a            a Delaware Corporation

                               By:  /s/ George W. Trahan
Borrower Name   n/a            Name and Title: George W. Trahan, President/CEO

                               By:  /s/ Gregory J. Smith
                               Name and Title: Greorgy J. Smith, VP Finance/CFO

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U.S. BANK                                                             1105510939

                               INTEREST RATE RIDER

This Rider is made part of the Installment or Single Payment and Note (the
"NOTE") in the original amount of $1,000,000.00 by the undersigned borrower (the
"BORROWER") in favor of U. S. BANK N. A. (the BANK") as of the date identified
below. The following interest rate description is hereby added to the Note:

Interest Rate Options. Interest on each advance hereunder shall accrue at one of
the following per annum rates selected by the Borrower ("n/a" indicates rate
option is not available, but Prime Rate Loan option must always be selected) (i)
upon notice to the Bank, -0.250% plus the prime rate announced by the Bank from
time to time, as and when such rate changes (a "Prime Rate Loan"); (ii) upon a
minimum of two New York Banking Days prior notice. 2.000%, plus the 1, 2, 3, 6
or 12 month LIBOR rate quoted by the Bank from Telerate Page 3750 or any
successor thereto (which shall be the LIBOR rate in effect two New York Banking
Days prior to commencement of the advance), adjusted for any reserve requirement
and any subsequent costs arising from a change in government regulation (a
"LIBOR Rate Loan"); or (iii) upon notice to the Bank, n/a % plus the rate,
determined solely by the Bank, at which the Bank would be able to borrow funds
of comparable amounts in the Money Markets for a 1, 2, 3, 6 or 12 month period,
adjusted for any reserve requirement and any subsequent costs arising from a
change in government regulation (a "Money Market Rate Loan"). The term "New York
Banking Day" means any day (other than a Saturday or Sunday) on which commercial
banks are open for business in New York, New York. The term "Money Markets"
refers to one or more wholesale funding markets available to the Bank, including
negotiable certificates of deposit, commercial paper, eurodollar deposits, bank
notes, federal funds, interest rate swaps or others. No LIBOR Rate Loan or Money
Market Rate Loan may extend beyond the maturity of this Note. In any event, if
the Loan Period for a LIBOR Rate Loan or Money Market Rate Loan should happen to
extend beyond the maturity of this Note, such loan must be prepaid at the time
this Note matures. If a LIBOR Rate Loan or Money Market Rate Loan is prepaid
prior to the end of the Loan Period for such loan, whether voluntarily or
because prepayment is required due to the Note maturing or due to acceleration
of this Note upon default or otherwise, the Borrower agrees to pay all of the
Bank's costs, expenses and Interest Differential (as determined by the Bank)
incurred as a result of such prepayment. The term "Loan Period" means the period
commencing on the advance date of the applicable LIBOR Rate Loan or Money Market
Rate Loan and ending on the numerically corresponding day 1, 2, 3, 6 or 12
months thereafter matching the interest rate term selected by the Borrower;
provided, however, (a) if any Loan Period would otherwise end on a day which is
not a New York Banking Day, then the Loan Period shall end on the next
succeeding New York Banking Day unless the next succeeding New York Banking Day
falls in another calendar month, in which case the Loan Period shall end on the
immediately preceding New York Banking Day; or (b) if any Loan Period begins on
the last New York Banking Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at the end of the Loan
Period), then the Loan Period shall end on the last New York Banking Day of the
calendar month at the end of such Loan Period. The term "Interest Differential"
shall mean that sum equal to the greater of zero or the financial loss incurred
by the Bank resulting from prepayment, calculated as the difference between the
amount of interest the Bank would have earned (from like investments in the
Money Markets as of the first day of the LIBOR Rate Loan or Money Market Rate
Loan) had prepayment not occurred and the interest the Bank will actually earn
(from like investments in the Money Markets as of the date of prepayment) as a
result of the redeployment of funds from the prepayment. Because of the
short-term nature of this facility, the Borrower agrees that the Interest
Differential shall not be discounted to its present value. Any prepayment of a
LIBOR Rate Loan or Money Market Rate Loan shall be in an amount equal to the
remaining entire principal balance of such loan.

In the event the Borrower does not timely select another interest rate option at
least two New York Banking Days before the end of the Loan Period for a LIBOR
Rate Loan or Money Market Rate Loan, the Bank may at any time after the end of
the Loan Period convert the LIBOR Rate Loan or Money Market Rate Loan to a Prime
Rate Loan, but until such conversion, the funds advanced under the LIBOR Rate
Loan or Money Market Rate Loan shall continue to accrue interest at the same
rate as the interest rate in effect for such LIBOR Rate Loan or Money Market
Rate Loan prior to the end of the Loan Period.

The Bank's internal records of applicable interest rates shall be determinative
in the absence of manifest error. Each LIBOR Rate Loan, and each Money Market
Rate Loan shall be in a minimum principal amount of $100,000.

<PAGE>

Dated as of January 18, 2007

(Individual Borrower)           Hi-Shear Technology Corporation
                                Borrower Name (Organization)

Borrower Name  n/a              a Delaware Corporation

                                By: /s/ George W. Trahan
Borrower Name  n/a              Name and Title: George W. Trahan, President/CEO

                                By: /s/ Gregory J. Smith
                                Name and Title: Gregory J. Smith, VP Finance/CFO

<PAGE>

U.S. BANK                                                             1105510939

                     CALIFORNIA JUDICIAL REFERENCE AGREEMENT

This California Judicial Reference Agreement ("AGREEMENT") is entered into in
connection with any existing financing (other than consumer purpose financing)
("FINANCING") provided by U.S. BANK N.A. ("BANK") to Hi-Shear Technoloqy
Corporation ("BORROWER") evidenced, secured and/or supported by one or more
promissory notes, loan agreements, security agreements, mortgages/deeds of
trust, guaranties and/or other documents signed by the undersigned parties (said
promissory note and such other agreements, together with amendments,
modifications, substitutions and replacements thereto, are hereinafter referred
to as the "LOAN DOCUMENTS").

For good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto (collectively, the "PARTIES") agree as
follows:

1.   Any and all disputes, claims and controversies arising out of the Loan
     Documents or the transactions contemplated thereby (including, but not
     limited to, actions arising in contract or tort and any claims by a Party
     against Bank related in any way to the Financing) (individually, a
     "DISPUTE") that are brought before a forum in which pre-dispute waivers of
     the right to trial by jury are invalid under applicable law shall be
     subject to the terms of this Agreement in lieu of the jury trial waivers
     otherwise provided in the Loan Documents.
2.   Any and all Disputes shall be heard by a referee and resolved by judicial
     reference pursuant to California Code of Civil Procedure Sections 638 et
     seq.
3.   The referee shall be a retired California state court judge or an attorney
     licensed to practice law in the State of California with at least ten (10)
     years' experience practicing commercial law. The Parties shall not seek to
     appoint a referee that may be disqualified pursuant to California Code of
     Civil Procedure Section 641 or 641.2 without the prior written consent of
     all Parties.
4.   If the Parties are unable to agree upon a referee within ten (10) calendar
     days after one Party serves a written notice of intent for judicial
     reference upon the other Party or Parties, then the referee will be
     selected by the court in accordance with California Code of Civil Procedure
     Section 640(b).
5.   The referee shall render a written statement of decision and shall conduct
     the proceedings in accordance with the California Code of Civil Procedure,
     the Rules of Court, and California Evidence Code, except as otherwise
     specifically agreed by the parties and approved by the referee. The
     referee's statement of decision shall set forth findings of fact and
     conclusions of law. The decision of the referee shall be entered as a
     judgment in the court in accordance with the provisions of California Code
     of Civil Procedure Sections 644 and 645. The decision of the referee shall
     be appealable to the same extent and in the same manner that such decision
     would be appealable if rendered by a judge of the superior court.
6.   Nothing in this Agreement shall be deemed to apply to or limit the right of
     Bank (a) to exercise self help remedies such as (but not limited to)
     setoff, or (b) to foreclose judicially or nonjudicially against any real or
     personal property collateral, or to exercise judicial or nonjudicial power
     of sale rights, (c) to obtain from a court provisional or ancillary
     remedies (including, but not limited to, injunctive relief, a writ of
     possession, prejudgment attachment, a protective order or the appointment
     of a receiver), or (d) to pursue rights against a Party in a third-party
     proceeding in any action brought against Bank (including actions in
     bankruptcy court). Bank may exercise the rights set forth in the foregoing
     clauses (a) through (d), inclusive, before, during or after the pendency of
     any judicial reference proceeding. Neither the exercise of self help
     remedies nor the institution or maintenance of an action for foreclosure or
     provisional or ancillary remedies or the opposition to any such provisional
     remedies shall constitute a waiver of the right of any Party, including,
     but not limited to, the claimant in any such action, to require submission
     to judicial reference the merits of the Dispute occasioning resort to such
     remedies. No provision in the Loan Documents regarding submission to
     jurisdiction and/or venue in any court is intended or shall be construed to
     be in derogation of the provisions in any Loan Document for judicial
     reference of any of Dispute.
7.   If a Dispute includes multiple claims, some of which are found not subject
     to this Agreement, the Parties shall stay the proceedings of the Disputes
     or part or parts thereof not subject to this Agreement until all other
     Disputes or parts thereof are resolved in accordance with this Agreement.
     If there are Disputes by or against multiple parties, some of which are not
     subject to this Agreement, the Parties shall sever the Disputes subject to
     this Agreement and resolve them in accordance with this Agreement.

<PAGE>

8.   During the pendency of any Dispute which is submitted to judicial reference
     in accordance with this Agreement, each of the Parties to such Dispute
     shall bear equal shares of the fees charged and costs incurred by the
     referee in performing the services described in this Agreement. The
     compensation of the referee shall not exceed the prevailing rate for like
     services. The prevailing party shall be entitled to reasonable court costs
     and legal fees, including customary attorney fees, expert witness fees,
     paralegal fees, the fees of the referee and other reasonable costs and
     disbursements charged to the party by its counsel, in such amount as is
     determined by the Referee.
9.   In the event of any challenge to the legality or enforceability of this
     Agreement, the prevailing Party shall be entitled to recover the costs and
     expenses from the non-prevailing Party, including reasonable attorneys'
     fees, incurred by it in connection therewith.
10.  THIS AGREEMENT CONSTITUTES A "REFERENCE AGREEMENT" BETWEEN OR AMONG THE
     PARTIES WITHIN THE MEANING OF AND FOR PURPOSES OF CALIFORNIA CODE OF CIVIL
     PROCEDURE SECTION 638.

Dated as of: JANUARY 18, 2007
Agreed to:
        U.S. BANK N.A.
        (Bank)

By:               /s/ David Clarke
                  David Clarke
Name and Title:   Vice President

                               Hi-Shear Technology Corporation
(Individual)                   Name (Organization)

                               a Delaware Corporation
Printed Name:

(Individual)                   By: /s/ George W. Trahan
                               Name and Title:  George W. Trahan, President/CEO
Printed Name:

(Individual)                   By: /s/ Gregory J. Smith
                               Name and Title:  Gregory J. Smith, VP Finance/CEO
Printed Name:

(Individual)                   By:
                               Name and Title:
Printed Name:

(Individual)                   By:
                               Name and Title:
Printed Name:

(Individual)                   By:
                               Name and Title:
Printed Name:

(Individual)                   By:
                               Name and Title:
Printed Name:

(Individual)

Printed Name:<PAGE>

                                                                    EXHIBIT 10.2

                                         For Bank Use Only Reviewed by__________

                                         Due DECEMBER 15, 2008

                                         Customer # 1105510939   Loan # 83

                      AMENDMENT TO LOAN AGREEMENT AND NOTE

     This amendment the ("AMENDMENT"), dated as of the date specified below, is
by and between the borrower (the "BORROWER") and the bank (the "BANK")
identified below.

                                    RECITALS

     A. The Borrower and the Bank have executed a Loan Agreement (the
"AGREEMENT") dated MARCH 23, 2000 and the Borrower has executed a Note (the
"NOTE"), dated FEBRUARY 15, 2001, either or both which may have been amended and
replaced from time to time, and the Borrower (and if applicable, certain third
parties) have executed the collateral documents which may or may not be
identified in the Agreement and certain other related documents (collectively
the "Loan Documents"), setting forth the terms and conditions upon which the
Borrower may obtain loans from the Bank from time to time in the original amount
of $5,500,000.00, as may be amended from time to time.

     B. The Borrower has requested that the Bank permit certain modifications to
the Agreement and Note as described below.

     C. The Bank has agreed to such modifications, but only upon the terms and
conditions outlined in this Amendment.

                               TERMS OF AGREEMENT

     In consideration of the mutual covenants contained herein, and for other
good and valuable consideration, the Borrower and the Bank agree as follows:

     X CHANGE OF MATURITY DATE. If checked here, any references in the Agreement
or Note to the maturity date or date of final payment are hereby deleted and
replaced with "DECEMBER 15, 2008".

     X CHANGE IN MAXIMUM LOAN AMOUNT. If checked here, all references in the
Agreement and in the Note (whether or not numerically) to the maximum loan
amount are hereby deleted and replaced with "$ 5,000,000.00", which evidences an
additional $ 2,500,000.00 available to be advanced subject to the terms and
conditions of the Agreement and Note.

     TEMPORARY INCREASE IN MAXIMUM LOAN AMOUNT. If checked here, notwithstanding
the maximum principal amount that may be borrowed from time to time under the
Agreement and Note, the maximum principal amount that may be borrowed thereunder
shall increase from $_______________ to $_________ effective ___________ through
__________ annually. On ___ through _______annually, the maximum principal
amount that may be borrowed thereunder shall revert to $____ and any loans
outstanding in excess of that amount will be immediately due and payable without
further demand by the Bank.

<PAGE>

     __ CHANGE IN MULTIPLE ADVANCE TERMINATION DATE. If checked here, all
references in the Agreement and in the Note to the termination date for multiple
advances are hereby deleted and replaced with " ____ ".

     __ CHANGE IN PAYMENT SCHEDULE. If checked here, effective upon the date of
this Amendment, any payment terms are amended as follows:

     __ CHANGE IN INTEREST RATE. If checked here, effective upon the date of
this Amendment, interest payable under the Note is amended as follows:

The unpaid principal balance will bear interest at an annual rate described in
the Interest Rate Rider attached to this Amendment.

     ___ CHANGE IN LATE PAYMENT FEE. If checked here, subject to applicable law,
if any payment is not made on or before its due date, the Bank may collect a
delinquency charge of _____% of the unpaid amount. Collection of the late
payment fee shall not be deemed to be a waiver of the Bank's right to declare a
default hereunder.

     ___ CHANGE IN CLOSING FEE. If checked here and subject to applicable law,
the Borrower will pay the Bank a closing fee of $______ (apart from any prior
closing fee) contemporaneously with the execution of this Amendment. This fee is
in addition to all other fees, expenses and other amounts due hereunder.

     ___ CHANGE IN PAID-IN-FULL PERIOD. If checked here, all revolving loans
under the Agreement and the Note must be paid in full for a period of at least
_____ consecutive days during each fiscal year. Any previous Paid-in-Full
provision is hereby replaced with this provision.

     DEFAULT INTEREST RATE. Notwithstanding any provision of this Note to the
contrary, upon any default or at any time during the continuation thereof
(including failure to pay upon maturity), the Bank may, at its option and
subject to applicable law, increase the interest rate on this Note to a rate of
5% per annum plus the interest rate otherwise payable hereunder. Notwithstanding
the foregoing and subject to applicable law, upon the occurrence of a default by
the Borrower or any guarantor involving bankruptcy, insolvency, receivership
proceedings or an assignment for the benefit of creditors, the interest rate on
this Note shall automatically increase to a rate of 5% per annum plus the rate
otherwise payable hereunder.

     EFFECTIVENESS OF PRIOR DOCUMENTS. Except a specifically amended hereby, the
Agreement, the Note and the other Loan Documents shall remain in full force and
effect in accordance with their respective terms. All warranties and
representations contained in the Agreement and the other Loan Documents are
hereby reconfirmed as of the date hereof. All collateral previously provided to
secure the Agreement and/or Note continues as security, and all guaranties
guaranteeing obligations under the Loan Documents remain in full force and
effect. This is an amendment, not a novation.

     PRECONDITIONS TO EFFECTIVENESS. This Amendment shall only become effective
upon execution by the Borrower and the Bank, and approval by any other third
party required by the Bank.

     NO WAIVER OF DEFAULTS; WARRANTIES. This Amendment shall not be construed as
or be deemed to be a waiver by the Bank of existing defaults by the Borrower,
whether known or undiscovered. All agreements, representations and warranties
made herein shall survive the execution of this Amendment.

     COUNTERPARTS. This Amendment may be signed in any number of counterparts,
each of which shall be considered an original, but when taken together shall
constitute one document.

<PAGE>

     AUTHORIZATION. The Borrower represents and warrants that the execution
delivery and performance of this Amendment and the documents referenced herein
are within the authority of the Borrower and have been duly authorized by all
necessary action.

     TRANSFERABLE RECORD. The agreement and note, as amended, is a "transferable
record" as defined in applicable law relating to electronic transactions.
Therefore, the holder of the agreement and note, as amended, may, on behalf of
Borrower, create a microfilm or optical disk or other electronic image of the
agreement and note, as amended, that is an authoritative copy as defined in such
law. The holder of the agreement and note, as amended, may store the
authoritative copy of such agreement and note, as amended, in its electronic
form and then destroy the paper original as part of the holder's normal business
practices. The holder, on its own behalf, may control and transfer such
authoritative copy as permitted by such law.

     ATTACHMENTS. ALL DOCUMENTS ATTACHED HERETO, INCLUDING ANY APPENDICES,
SCHEDULES, RIDERS, AND EXHIBITS TO THIS AMENDMENT, ARE HEREBY EXPRESSLY
INCORPORATED HEREIN BY REFERENCE.

Dated as of  JANUARY 18, 2007
                                               HI-SHEAR TECHNOLOGY, CORP.
(Individual Borrower)                          Borrower Name (Organization)

_____________________________________          a DELAWARE Corporation

Borrower Name ________________N/A____          By: /s/ George W. Trahan
                                               Name and Title: George W. Trahan,
_____________________________________                          President/CEO

Borrower Name _____________N/A________         By:  /s/ Gregory J. Smith
                                               Name and Title: Gregory J. Smith,
                                                               V.P. Finance/CFO
Agreed to:
  U.S. BANK N.A.

By:  /s/ David Clarke
Name and Title:  David Clarke
                 Vice President

<PAGE>

                 ADDENDUM TO REVOLVING CREDIT AGREEMENT AND NOTE

This Addendum is made part of the Revolving Credit Agreement and Note (the
"Agreement") made and entered into by and between the undersigned borrower (the
"Borrower") and the undersigned bank (the "Bank") as of the date identified
below. The warranties, covenants and other terms described below are hereby
added to the Agreement.

AMENDMENTS TO FINANCIAL COVENANTS. Financial covenants set forth in the
Agreement are modified, added, deleted or restated as more specifically set
forth below. Financial covenants which are not modified, restated or deleted
below shall remain in full force and effect. Financial terms used in the
Amendment which are not specifically defined in the Amendment shall have the
meanings ascribed to them under generally accepted accounting principles. For
any Borrower or Guarantor who does not have a separate fiscal year end for tax
reporting purposes, the fiscal year will be deemed to be the calendar year.

MODIFICATION OF BORROWER FINANCIAL COVENANTS. All Borrower financial covenants,
whether set forth below or in the Agreement, will be maintained by Borrower (for
purposes of all existing, new and amended financial covenants, the "Subject
Party").

ADDITIONAL OR MODIFIED FINANCIAL COVENANTS. The following covenants are hereby
added or restated: CURRENT RATIO at all times of at least 2.0 to 1.

"CURRENT RATIO" shall mean the relationship, expressed as a numerical ratio,
between the amount described below in item (i) of the definition of "Net Working
Capital" and the amount described below in item (ii) of the definition of "Net
Working Capital".

"NET WORKING CAPITAL" shall mean:

(i)  The amount of all assets which under generally accepted accounting
     principles would appear as current assets on the balance sheet of the
     Subject Party.

Less

(ii) the amount of all liabilities which under generally accepted accounting
     principles would appear as current liabilities on such balance sheet,
     including all indebtedness payable on demand or maturing (whether by reason
     of specified maturity, fixed prepayments, sinking funds or accruals of any
     kind, or otherwise) within 12 calendar months or less from the date of the
     relevant statement, including all lease and rental obligations due in 12
     calendar months or less under capitalized leases, and including customers'
     advances and progress billings on contracts,

FIXED CHARGE COVERAGE RATIO as of the end of each fiscal quarter for the four
(4) fiscal quarters then ended of at least 1.25 to 1.

"FIXED CHARGE COVERAGE RATIO" shall mean (a) EBITDAR minus cash taxes, cash
dividends and Maintenance Capital Expenditures divided by (b) the sum of all
required principal payments (on short and long term debt and capital leases),
interest and rental or lease expense.

"EBITDAR" shall mean net income, plus interest expense, plus income tax expense,
plus depreciation expense plus amortization expense plus rent or lease expense.

<PAGE>

"MAINTENANCE CAPITAL EXPENDITURES" shall mean 50% of the Subject Party's
depreciation expense for the period specified.

"CAPITAL EXPENDITURES" shall mean the aggregate amount of all purchases or
acquisitions of fixed assets, including real estate, motor vehicles, equipment,
fixtures, leases and any other items that would be capitalized on the books of
the Subject Party under generally accepted accounting principles. The term
"Capital Expenditures" will not include expenditures or charges for the usual
and customary maintenance, repair and retooling of any fixed asset or the
acquisition of new tooling in the ordinary course of business.

DELETION OF FINANCIAL COVENANTS. The following financial covenants are hereby
deleted from the Agreement, as previously amended: Working Capital, Minimum Net
Worth, and Maintain positive cash flow from operations as presented in the
Sources and Uses Statement of the 10-Q and 10-K, measured on a rolling four
quarter.

DELETION OF FINANCIAL INFORMATION AND REPORTING REQUIREMENTS. The following
financial information and reporting requirements are hereby deleted from the
Agreement, as previously amended: Aging Accounts Receivable, Aging Accounts
Payable, and Revenue Billing and Backog Report.

Dated as of January 18, 2007

(Individual)                 (Non-Individual)

______________________       Hi-Shear Technology Corporation
Borrower Name n/a            a/an Delaware Corporation

______________________       By:  /s/ George W. Trahan
Borrower Name n/a            Name and Title: George W. Trahan, President/CEO

                             By:  /s/ Gregory J. Smith
                             Name and Title: Greorgy J. Smith, VP Finance/CFO

                             Agreed to:
                             U.S. Bank N.A.

                             By:  /s/ David Clarke
                             Name and Title: David Clarke, Vice President

<PAGE>

                         SECOND ADDENDUM TO AMENDMENT TO
                             LOAN AGREEMENT AND NOTE
                                     Between
               U.S. Bank N.A. and Hi-Shear Technology Corporation

                                January 18, 2007

The terms, conditions, representations, warranties and other provisions of this
Second Addendum to Amendment to Loan Agreement and Note (this "ADDENDUM") amend,
modify, and supplement the Amendment to Loan Agreement and Note (the
"AMENDMENT") by and between the undersigned borrower ("BORROWER") and U. S. Bank
N.A. ("BANK"), the Addendum to Revolving Credit Agreement and Note (the "FIRST
ADDENDUM") by and between Borrower and Bank, the Term Note in the original
principal amount of One Million and no/100 Dollars ($1,000,000.00) by Borrower
in favor of Bank (the "JANUARY 2007 NOTE") and the Addendum to Note (the "NOTE
ADDENDUM") by Borrower in favor of Bank, all of which documents are dated as of
the date hereof. The First Addendum and this Addendum are (notwithstanding the
name of the First Addendum and the introductory paragraph in the First Addendum)
addendums to the Amendment. The Amendment amends, modifies and/or supplements
the Agreement (as defined in the Amendment). Capitalized terms not defined
herein shall have the meanings ascribed to them in the Agreement, or if not
defined in the Agreement, the meanings ascribed to them under generally accepted
accounting principles ("GAAP"). In the event of any conflict between the
provisions of the Agreement, the Amendment or the First Addendum on the one
hand, and the provisions of this Addendum on the other, the provisions of this
Addendum shall prevail and control.

1. FIXED RATE OPTION (EXTENSION OF JANUARY 2007 NOTE). Borrower and Bank agree
that, so long as no default or Event of Default under any Loan Document has
occurred and is continuing, Borrower shall have the following option with
respect to the January 2007 Note:

Borrower may extend the maturity date of the January 2007 Note from January 18,
2008 (the "Original Maturity Date") to January 18, 2013 (the "Extended Maturity
Date") and convert the interest rate applicable thereto to a fixed rate per
annum equal to 2.00% plus Bank's Cost of Funds as of the date of the conversion.
This option may be exercised only: (a) once during the term of the January 2007
Note, on or before the Original Maturity Date; (b) upon actual receipt by Bank
of written notice of exercise from Borrower to Bank received no later than
December 18, 2007; (c) after all loan proceeds that Borrower has requested to be
advanced and that Bank has agreed to advance under the January 2007 Note have
been fully advanced; and (d) as to the entire then-outstanding principal balance
of the January 2007 Note.

Following conversion to a fixed rate as provided above, the repayment schedule
for the January 2007 Note shall be revised so that the remaining principal and
interest shall be payable in equal monthly installments, each in an amount
sufficient to amortize the remaining principal balance of the January 2007 Note
plus interest thereon over the remaining term of the January 2007 Note, as
extended to the Extended Maturity Date.

If Borrower is eligible and elects to convert to the fixed rate as provided
hereby, Borrower shall execute an amendment to the January 2007 Note or, at
Bank's option, an amended and restated note reflecting the extension of the
maturity date thereof, the change to a fixed rate and the change in the
repayment schedule, and describing Bank's applicable prepayment indemnity in
effect at the time of conversion. Depending upon the applicable prepayment
indemnity option following conversion, Borrower acknowledges that prepayment may
be prohibited except with the consent of Bank. Notwithstanding the foregoing,
Borrower shall have the option, at the time of conversion, to have the
prepayment indemnity waived in exchange for adding, to Bank's Cost of Funds, a
premium amount required by Bank at such time; provided, however, there shall be
no waiver of the prepayment indemnity if, at the time of conversion, the
outstanding principal balance of the January 2007 Note is less than $100,000.

<PAGE>

No additional advances shall be made under the January 2007 Note after
conversion to a fixed interest rate as provided above, even if less than all
proceeds evidenced by the January 2007 Note have been advanced prior to such
conversion.

For purposes of this Fixed Rate Option (Extension of January 2007 Note)
provision, the term "COST OF FUNDS" means the rate at which Bank would be able
to borrow funds of comparable amounts in the Money Markets for a period equal to
the remaining term of the January 2007 Note, adjusted for any reserve
requirement and any subsequent costs arising from a change in government
regulation; such rate rounded upward to the nearest one-eighth percent; and the
term "MONEY MARKETS" refers to one or more wholesale funding markets available
to and selected by Bank, including negotiable certificates of deposit,
commercial paper, eurodollar deposits, bank notes, federal funds, interest rate
swaps or others.

If Borrower is not eligible to exercise or chooses not to exercise its option to
convert the interest rate of the January 2007 Note, and to extend the maturity
date of the January 2007 Note to the Extended Maturity Date, as provided herein,
Borrower shall repay all outstanding and unpaid principal and interest on the
Original Maturity Date.

2. CONTINUING VALIDITY. Except as expressly modified above or in other
agreements between Borrower and Bank, the terms of the Agreement, the Amendment,
the First Addendum, the Note Addendum, the January 2007 Note and the other Loan
Documents shall remain unchanged and in full force and effect.

Dated as of January 18, 2007

                      Hi-Shear Technology Corporation,
                      a Delaware corporation

                      By:  /s/ George W. Trahan
                      Name and Title:   George W. Trahan,
                                        President/CEO

                      By:  /s/ Gregory J. Smith
                      Name and Title:   Gregory J. Smith
                                        VP Finance/CFO

                      U.S. Bank N.A.

                      By:  /s/ David Clarke
                                        David Clarke,
                                        Vice President

<PAGE>

U.S. BANK                                                          1105510939-83

                               INTEREST RATE RIDER

This Rider is made part of the Amendment to Loan Agreement and Note (the
"AMENDMENT") dated JANUARY 18, 2007 by the undersigned borrower (the "Borrower")
in favor of U. S. BANK N. A. (the BANK") as of the date identified below. The
following interest rate description is hereby added to the Amendment:

Interest Rate Options. Interest on each advance hereunder shall accrue at one of
the following per annum rates selected by the Borrower ("n/a" indicates rate
option is not available, but Prime Rate Loan option must always be selected) (i)
upon notice to the Bank, -0.250% plus the prime rate announced by the Bank from
time to time, as and when such rate changes (a "Prime Rate Loan"); (ii) upon a
minimum of two New York Banking Days prior notice, 2.000%, plus the 1, 2, 3, 6
or 12 month LIBOR rate quoted by the Bank from Telerate Page 3750 or any
successor thereto (which shall be the LIBOR rate in effect two New York Banking
Days prior to commencement of the advance), adjusted for any reserve requirement
and any subsequent costs arising from a change in government regulation (a
"LIBOR Rate Loan"); or (iii) upon notice to the Bank, n/a % plus the rate,
determined solely by the Bank, at which the Bank would be able to borrow funds
of comparable amounts in the Money Markets for a 1, 2, 3, 6 or 12 month period,
adjusted for any reserve requirement and any subsequent costs arising from a
change in government regulation (a "Money Market Rate Loan"). The term "New York
Banking Day" means any day (other than a Saturday or Sunday) on which commercial
banks are open for business in New York, New York. The term "Money Markets"
refers to one or more wholesale funding markets available to the Bank, including
negotiable certificates of deposit, commercial paper, eurodollar deposits, bank
notes, federal funds, interest rate swaps or others. No LIBOR Rate Loan or Money
Market Rate Loan may extend beyond the maturity of this Note. In any event, if
the Loan Period for a LIBOR Rate Loan or Money Market Rate Loan should happen to
extend beyond the maturity of this Note, such loan must be prepaid at the time
this Note matures. If a LIBOR Rate Loan or Money Market Rate Loan is prepaid
prior to the end of the Loan Period for such loan, whether voluntarily or
because prepayment is required due to the Note maturing or due to acceleration
of this Note upon default or otherwise, the Borrower agrees to pay all of the
Bank's costs, expenses and Interest Differential (as determined by the Bank)
incurred as a result of such prepayment. The term "Loan Period" means the period
commencing on the advance date of the applicable LIBOR Rate Loan or Money Market
Rate Loan and ending on the numerically corresponding day 1, 2, 3, 6 or 12
months thereafter matching the interest rate term selected by the Borrower;
provided, however, (a) if any Loan Period would otherwise end on a day which is
not a New York Banking Day, then the Loan Period shall end on the next
succeeding New York Banking Day unless the next succeeding New York Banking Day
falls in another calendar month, in which case the Loan Period shall end on the
immediately preceding New York Banking Day; or (b) if any Loan Period begins on
the last New York Banking Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at the end of the Loan
Period), then the Loan Period shall end on the last New York Banking Day of the
calendar month at the end of such Loan Period. The term "Interest Differential"
shall mean that sum equal to the greater of zero or the financial loss incurred
by the Bank resulting from prepayment, calculated as the difference between the
amount of interest the Bank would have earned (from like investments in the
Money Markets as of the first day of the LIBOR Rate Loan or Money Market Rate
Loan) had prepayment not occurred and the interest the Bank will actually earn
(from like investments in the Money Markets as of the date of prepayment) as a
result of the redeployment of funds from the prepayment. Because of the
short-term nature of this facility, the Borrower agrees that the Interest
Differential shall not be discounted to its present value. Any prepayment of a
LIBOR Rate Loan or Money Market Rate Loan shall be in an amount equal to the
remaining entire principal balance of such loan.

<PAGE>

In the event the Borrower does not timely select another interest rate option at
least two New York Banking Days before the end of the Loan Period for a LIBOR
Rate Loan or Money Market Rate Loan, the Bank may at any time after the end of
the Loan Period convert the LIBOR Rate Loan or Money Market Rate Loan to a Prime
Rate Loan, but until such conversion, the funds advanced under the LIBOR Rate
Loan or Money Market Rate Loan shall continue to accrue interest at the same
rate as the interest rate in effect for such LIBOR Rate Loan or Money Market
Rate Loan prior to the end of the Loan Period.

The Bank's internal records of applicable interest rates shall be determinative
in the absence of manifest error. Each LIBOR Rate Loan and each Money Market
Rate Loan shall be in a minimum principal amount of $100,000.

   Dated as of January 18, 2007

   (Individual Borrower)        Hi-Shear Technology Corporation
                                Borrower Name (Organization)
   Borrower Name   n/a
                                a Delaware Corporation

                                By:  /s/ George W. Trahan
   Borrower Name   n/a          Name and Title: George W. Trahan, President/CEO

                                By:  /s/ Gregory J. Smith
                                Name and Title: Gregory J. Smith, VP Finance/CFO

<PAGE>

U.S. BANK                                                             1105510939

                           HAZARD INSURANCE DISCLOSURE

                Required by California Civil Code Section 2955.5

Under California law, no lender shall require a borrower, as a condition of
receiving or maintaining a loan secured by real property, to provide hazard
insurance coverage against risks to the improvements on that real property in an
amount exceeding the replacement value of the improvements on the property.

For the purposes of the above disclosure:

     "Hazard insurance coverage" means insurance against losses caused
     by perils which are commonly covered in policies described as a
     "Homeowner's Policy", "General Property Form", "Guaranteed
     Replacement Cost Insurance" "Special Building Form", "Standard
     Fire", Standard Fire with Extended Coverage", "Standard Fire with
     Special Form Endorsement", or comparable insurance coverage to
     protect the real property against loss or damage from fire and
     other perils covered within the scope of a standard extended
     coverage endorsement.

     "Improvements" means buildings or structures attached to the real
     property.

By signing below, the undersigned Borrower acknowledges receipt of the above
disclosure as of JANUARY 18, 2007

(Individual)                    Hi-Shear Technology Corporation
                                (Organization)

Printed Name   n/a              a Delaware Corporation

(Individual)                    By: /s/ George W. Trahan
Printed Name   n/a              Name and Title: George W. Trahan, President/CEO

                                By:  /s/ Gregory J. Smith
                                Name and Title: Gregory J. Smith, VP Finance/CFO

<PAGE>

U.S. BANK                                                             1105510939

            CORPORATE RESOLUTION FOR BORROWING AND/OR PLEDGING ASSETS
                         Hi-Shear Technology Corporation

                               NAME OF CORPORATION

     WHEREAS, this corporation may enter into financial transactions or
accommodations with U.S. Bank N.A. (the "BANK") from time to time;

     NOW, THEREFORE, RESOLVED, that any 2 of the officers of this corporation
denoted below: [mark authorized officers]
<TABLE>
<S>     <C>
     __Chairman of the Board     __Treasurer                   Other:  X  President/CEO
     __President                 __ Secretary                  Other:  X  VP Finance/CFO
     __Any Vice President        __Any Assistant Treasurer     Other:
     __Any Assistant Secretary                                 Other
</TABLE>

is (are) authorized, on behalf of and in the name of this corporation, (a) to
borrow money from the Bank from time to time in such amounts as such officer(s)
shall deem advisable; (b) to make, execute, seal with the corporate seal, and
deliver to the Bank, from time to time, loan agreements, disbursing agreements,
notes, applications for letters of credit, and other evidence of or agreements
concerning such indebtedness, in such amounts with such maturities, at such
rates of interest, and upon such terms and conditions as said officer(s) shall
approve; (c) to pledge, assign, mortgage or otherwise grant a security interest
in any or all real property, fixtures, tangible or intangible personal property,
or any other assets of this corporation, to execute, seal with the corporate
seal, and deliver to the Bank such security agreements, chattel mortgages,
assignments, financing statements, real estate mortgages, deeds of trust, lease
or rental assignments, assignments of life insurance, agreements not to
encumber, or other agreements respecting any or all interests in real or
personal property now owned or hereafter acquired by this corporation as may be
requested by the Bank to secure any obligations of this corporation to the Bank
or to secure the obligations of a third party to the Bank, now existing or
hereafter arising, all upon such terms and conditions as said officer(s) shall
approve, and to perform such acts required of this corporation in such
agreements or otherwise to perfect such security interests; (d) to sell to the
Bank, with or without recourse, accounts, contract rights, general intangibles,
instruments, documents, chattel paper, equipment, inventory, insurance policies,
deposit accounts, rights in action or other personal property of this
corporation; (e) to endorse or assign and deliver such property to the Bank, and
from time to time to withdraw and make substitutions of such property, or to
sell such property to third persons and cause the proceeds of such sales to be
applied against the obligations of this corporation to the Bank; (f) to give
subordinations, guaranties or other financial accommodations to the Bank (it
being the judgment of the governing body of this corporation that any such
guaranties may reasonably be expected to benefit the corporation); and (g) to
endorse and deliver for discount with the Bank, notes, certificates of deposit,
bills of exchange, orders for the payment of money, chattel paper, commercial,
or other business paper, howsoever drawn, either belonging to or coming into the
possession of this corporation. The signature(s) of said officer(s) appearing on
any of the foregoing instruments shall be conclusive evidence of (his/her)
(their) approval thereof.

     FURTHER RESOLVED, that the authority granted to the officers of this
corporation shall continue in full force and effect, and said Bank may rely
thereon in dealing with such officers, unless and until written notice of any
change in or revocation of such authority shall be delivered to said Bank to the
attention of Commercial Loan Servicing by an officer or director of this
corporation, and any action taken by said officers and relied on by said Bank
pursuant to the authority granted herein prior to its receipt of such written
notice shall be fully and conclusively binding on this corporation.

<PAGE>

     FURTHER RESOLVED, that the actions of any officer of this corporation
heretofore taken in borrowing money from the Bank for and on behalf of this
corporation, and in securing such indebtedness in any manner authorized herein,
and in selling or assigning property of this corporation to the Bank with or
without recourse, and in discounting with the Bank commercial and other business
paper, be and the same hereby are in all respects ratified, confirmed and
approved.

     FURTHER RESOLVED, that in consideration of any loans or other financial
accommodation made by the Bank to this corporation, this corporation shall be
authorized to and shall assume full responsibility for and hold the Bank
harmless from any and all payments made or any other actions taken by the Bank
in reliance upon the signatures, including facsimiles thereof, of any person or
persons holding the offices of this corporation designated above regardless of
whether or not the use of the facsimile signature was unlawful or unauthorized
and regardless of by whom or by what means the purported signature or facsimile
signature may have been affixed to any instrument if such signatures reasonably
resemble the specimen or facsimile signatures as provided to the Bank, or for
refusing to honor any signatures not provided to the Bank; and that this
corporation agrees to indemnify the Bank against any and all claims, demands,
losses, costs, damages or expenses suffered or incurred by the Bank resulting
from or arising out of any such payment or other action. The foregoing
indemnification shall be effective and may be enforced by the Bank upon delivery
to the Bank of a copy of this resolution certified by the Secretary, Assistant
Secretary or any other officer of this corporation.

     FURTHER RESOLVED, that the Secretary, Assistant Secretary or any other
officer of this corporation is authorized and directed to certify to the Bank
the foregoing resolutions and that the provisions thereof are in conformity with
the Articles of Incorporation and By-Laws of this corporation and to certify to
the Bank the names of the persons now holding the offices referred to above and
any changes hereafter in the persons holding said offices together with
specimens of the signatures of such present and future officers.

     FURTHER RESOLVED, that all prior resolutions of this corporation
authorizing the borrowing of money from the Bank and the securing thereof, be
and they hereby are rescinded and superseded as to all borrowings from the Bank
and security transactions with respect thereto effected after the date of
adoption of these resolutions.

     I HEREBY CERTIFY that I am the duly elected, qualified and acting Secretary
(or as otherwise designated below) and the custodian of the records of the
above-named corporation, a corporation organized and existing and in good
standing under the laws of the State of Delaware. The foregoing resolutions (i)
are true and correct copies of the resolutions duly adopted in accordance with
law and the Charter or Articles or Certificate of Incorporation and By-Laws or
Code of Regulations, as applicable, of the corporation and that such resolutions
are now in full force and effect without modifications and are duly recorded in
the minute book of the corporation or (ii) are otherwise in conformity with
existing resolutions, the Charter or Articles or Certificate of Incorporation
and By-Laws or Code of Regulations, as applicable, of the corporation, and
permit the officers designated herein to undertake all the activities set forth
above.

<PAGE>

     I FURTHER CERTIFY that set forth below are the true titles, names and
genuine signatures of the duly elected or appointed, qualified and acting
officers of said corporation presently holding such offices who are authorized
under the foregoing resolutions:

Title                            Name*                       Signature*

Chairman of
the Board

President

Vice President

Treasurer

Secretary

Assistant Treasurer

Assistant Secretary

Other                         George W. Trahan
                              President /CEO             /s/ George W. Trahan

Other                         Gregory J. Smith
                              VP Finance/CFO             /s/ Gregory J. Smith

Other

Other

     I FURTHER CERTIFY that copies of the Charter or Articles or Certificate of
Incorporation and By-Laws or Code of Regulations, as applicable, of the
corporation which have heretofore been delivered to the Bank or which are
delivered herewith are true and correct copies and that such Charter or Articles
or Certificate and By-Laws or Code of Regulations, as applicable, are presently
in full force and effect.

     IN WITNESS WHEREOF, I have affixed my name in my official capacity and have
caused the corporate seal of the corporation to be hereunto affixed on January
24, 2007.

(CORPORATE SEAL)                            /s/ Linda A. Nespole      Secretary
*Only the names and signatures of officers who will act in transactions with the
Bank need be inserted.

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