Document:

EXHIBIT 10.27

LOAN
AGREEMENT

THIS
IS A LOAN AGREEMENT (the “Agreement”), dated as of the 14th day of January,
2004, between Transnational Industries, Inc., a Delaware corporation, and
Spitz, Inc., a Delaware corporation (individually, collectively, jointly and severally
referred to as the “Borrower”), with an address of P.O. Box 198, Route 1,
Chadds Ford, Pennsylvania 19317, and FIRST KEYSTONE BANK (“Lender”), a federally
chartered stock savings bank organized and existing under the laws of the
United States of America, with a principal business office located at 22 West
State Street, Media, Pennsylvania, 19063.

1.   DEFINITIONS.
The following terms when used in this Agreement shall have the respective
meanings set forth below:

1.1.          Assignments:
Additional collateral for the Loan, including, without limitation, (i) a
Collateral Assignment of Agreements Affecting Real Estate,including without
limitation, all approvals, permits, contracts and warranties related to the Land;
and (ii) an Assignment of Rents, Profits and Leases.

1.2           Borrower: Transnational
Industries, Inc., a Delaware corporation, and Spitz, Inc., a Delaware corporation,
individually, collectively, jointly and severally.

1.3.          Closing Date:
The date of the execution and delivery of this Agreement by Borrower and
Lender.

1.4.          Collateral: The
real property and personal property pledged to Lender to secure the Loan pursuant
to the Mortgage and the Assignments, including, without limitation, the Land
and the improvements thereon.

1.5.          Commitment Letter:
A certain Commitment Letter from Lender to Borrower dated December 19, 2004

1.6.          Event of Default:
The occurrence of any event described in Paragraph 5.1 hereof.

1.7.          Governmental
Authority: The United States of America, the Commonwealth of Pennsylvania, and
any political subdivision thereof in which the Land is located including without
limitation the County of Delaware, the Township of Chadds Ford, and any agency,
department, court, commission, board, bureau or instrumentality of any of them
which exercises jurisdiction over the Land or Borrower.

1.8.          Land: The
real property currently occupied by Borrower located at Route 1, Chadds Ford
Township, Delaware County, Pennsylvania, being Folio No. 04-00-00034-02, as
more particularly described on Exhibit “A” to the

 1
 

Mortgage, together with
all of the property rights, title, interests, easements and other rights
appurtenant to such real property and defined in the Mortgage as the Mortgaged
Property.

1.9.          Legal
Requirements: All applicable laws, statutes, ordinances, rulings, regulations, codes,
decrees, orders, judgments, conditions, restrictions and requirements of any Governmental
Authority, including, without limitation, agreements, requirements, restrictions
and conditions related to any permit, approval or other grant of authority.

1.10.        Loan: The
credit facility of Three Million Two Hundred Thousand ($3,200,000.00) Dollars
to be advanced by Lender to Borrower pursuant to this Agreement and to be
evidenced by the Note and secured by, among other things, the Mortgage and the
Assignments.

1.11.        Loan Documents:
All agreements, documents, instruments, certificates, legal opinions and other
papers executed and delivered or otherwise furnished by Borrower to Lender in connection
with the Loan including, without limitation, this Agreement, the Commitment
Letter, the Note, the Mortgage, and the Assignments.

1.12.        Maturity
Date: January 13, 2024.

1.13.        Mortgage: The
mortgage of even date herewith from Borrower to Lender granting a first lien
mortgage and security interest in, among other things, (i) the Land, and (ii)
all personal property of Borrower located on the Land.

1.14.        Note: The
mortgage note of even date herewith from Borrower to Lender evidencing the Loan
in the amount of Three Million Two Hundred Thousand ($3,200,000.00) Dollars and
all extensions, renewals and modifications thereof.

1.15.        Permitted Exceptions:
The title exceptions not removed at the closing of the Loan from Title Insurance
Commitment No. 03-1156 dated effective October 30, 2003, issued by Strong
Abstract, Inc. agent for First American Title Insurance Company, as approved by
Lender in its sole discretion.

1.16.        Title Agent:
Strong Abstract, Inc., agent for First American Title Insurance Company.

2.   LOAN.

2.1.          General.
Borrower is the owner in fee of the Land. The Loan shall be repaid in full no
later than the Maturity Date, in accordance with this Agreement and the other
Loan Documents.

2.2.          Loan Amount.
Subject to the terms and conditions of this Agreement, Lender shall lend to
Borrower and Borrower shall borrow from Lender Three Million Two Hundred
Thousand ($3,200,000.00) Dollars, which shall bear interest and be repaid as
set forth in the Note.

 2
 

2.3.          Loan Disbursement.
The purpose of the Loan is to finance Borrower’s acquisition of the Land. The
proceeds of the Loan shall be fully disbursed of even date herewith by check or
wire transfer to the Title Agent to be applied on account of the purchase price
for the Land.

3.   REPRESENTATIONS
AND WARRANTIES. Borrower represents and warrants to Lender as of the date
hereof and at all times when this Agreement shall remain in effect or the indebtedness
evidenced by the Note shall remain outstanding that:

3.1.          Organization
and Good Standing. Borrower is/are duly organized, validly existing and in good
standing under the laws of the State of Delaware and Spitz, Inc. is registered
as a foreign corporation and is in good standing in the Commonwealth of Pennsylvania
and in any other jurisdiction in which Borrower was organized. The character of
the properties owned or leased by Borrower and the nature of Borrower’s. businesses
do not require Borrower to be qualified and in good standing in any other state
in order to avoid material liability or disadvantage. Certified copies of
Borrower’s organizational documents and all amendments thereto have been
delivered to Lender and are current, correct and complete as of the date hereof

3.2.          Power and
Authority. Borrower has full power and authority (i) to own Borrower’s
properties, and Spitz, Inc, has full power and authority to own the Land, and
(ii) to conduct Borrower’s businesses as now conducted and as to be conducted in
connection with the operation of the Land. Borrower has full power and authority
to execute, deliver and comply with the provisions of each of the Loan
Documents executed by Borrower. Each of the Loan Documents executed by Borrower
constitute the legally binding obligation of Borrower enforceable against
Borrower in accordance with its terms.

3.3.          No
Litigation. There is no action, suit or proceeding pending or, to the knowledge
of Borrower, threatened against or affecting Borrower or all or any portion of
the Land or Borrower’s business, except actions, suits and proceedings fully
covered (except for deductibles) by insurance.

3.4.          Conflict. Neither
the execution nor the delivery of any of the Loan Documents, nor the
performance or satisfaction by Borrower of any of the provisions thereof, will
conflict with or result in a breach of any of the provisions of any applicable Legal
Requirements, or any agreement or other instrument to which Borrower is a party
or by which Borrower is bound, or result in the creation or imposition of any
lien, charge or encumbrance upon any property of Borrower, or the Land other
than any lien created pursuant to any of the Loan Documents.

3.5.          Consent. No
consent, approval or other authorization of or by any Governmental Authority is
required in connection with the execution or delivery by Borrower of any of the
Loan Documents, or compliance with or performance of any of the provisions
thereof.

3.6.          Permits and Approvals.
Borrower has secured all licenses, permits, authorizations, consents and approvals
required by any Governmental Authority for the use and occupation of the Land
as commercial real estate and the operation of Borrower’s business thereon.

 3
 

3.7.          Compliance: Zoning.
Borrower has complied with all Legal Requirements and all recorded instruments affecting
the Land and the use thereof complies with all zoning and use-related Legal
Requirements.

3.8.          Financial Statements.

3.8.1.       The
financial statements of Borrower delivered to Lender prior to the date hereof are
Borrower’s most current financial statements and fully and accurately present
the financial condition of Borrower as of the date thereof, in accordance with
generally accepted accounting principles consistently applied. There are no
liabilities or obligations of Borrower which are individually or in the
aggregate material, either accrued, absolute, contingent or otherwise, except (i)
to the extent set forth in the balance sheets and the notes thereto and not
heretofore paid or discharged, and (ii) those incurred subsequent to the date
of the foregoing financial statements, which are consistent with past business practice
and in the normal and ordinary course of business.

3.8.2.       Since the
dates of the foregoing financial statements, there has not been (i) any
material adverse change in the financial condition or in the operations, business
or property of Borrower or (ii) any damage, destruction or loss, whether or not
covered by insurance, materially and adversely affecting the operations,
business or property of Borrower. Borrower is not aware of any fact or circumstance,
which (with or without the passage of time or the giving of notice or both)
would or could result in any such change.

3.9.          Taxes and
Assessments. All federal, state and other tax returns and reports of Borrower required
to be filed have been duly filed, and all federal, state and other taxes, assessments
(including assessments for municipal improvements), fees or other governmental charges
imposed upon Borrower or the Land which are due and payable have been paid. Borrower
is not aware of any proposed material tax or other assessments against it, or the
Land, and no extension of time for assessment or payment of any federal, state or
local tax by the Borrower is in effect, unless an extension has been applied for
and granted and any taxes due with such extension paid.

3.10.        Title.

3.10.1.     Spitz, Inc.
holds good, indefeasible and marketable fee simple title to the Land, free and
clear of all mortgages, liens, encumbrances, ground rents, leases, tenancies, licenses,
security interests, covenants, conditions, restrictions, rights-of-way, easements,
encroachments and any other matters affecting title except (i) the Permitted Exceptions,
and (ii) the liens and encumbrances created in favor of Lender pursuant to the
Loan Documents.

3.10.2.     Lender’s
right, title and interest in and to each of the agreements, documents, instruments,
contracts, permits, licenses and other materials and assets, if any, assigned
to Lender pursuant to this Agreement and the other Loan Documents are free and
clear of all liens, encumbrances, leases, licenses, covenants, conditions, restrictions,
security interests, other assignments and other matters affecting title (except
the Permitted Exceptions), and Borrower is

 4
 

permitted to assign such
agreements, documents, instruments, contracts, permits, licenses and other
materials and assets. Borrower is without knowledge of the existence of any
default under or breach of any of the foregoing.

3.10.3      Spitz, Inc. is
lawfully authorized to mortgage and encumber the Land.

3.10.4      Borrower has
not created, and will not create, or permit or suffer to be created, any liens,
encumbrances or security interests in or on the Land other than the Mortgage, or
create, or permit or suffer to be created, any reservation of title by any
party other than Lender with respect to any portion of the Land, other than
liens in favor of Lender.

3.11.        Utilities.
All utility services necessary for the full use, development and enjoyment of
the Land as currently improved, are available at no cost or expense at the
title lines of the Land (or, if they pass through adjoining private land, in
accordance with valid public or unencumbered private easements which inure to
the benefit of Borrower and run with the Land, copies of which have been
delivered to Lender) including, without limitation, sanitary sewers, storm
sewers, water, electricity, and telephone.

3.12.        Roads. The
Land is located along a dedicated public street, and if not located a dedicated
public street, access to the Land is insured, and all curb-cut and street opening
permits or licenses required for vehicular access to and from the Land to any adjoining
public street or highway have been obtained and paid for by Borrower and are in
full force and effect. All roads necessary for the full utilization of the Land
for its intended purposes have either been completed or the necessary rights of
way therefore have been acquired by Borrower or by the appropriate Governmental
Authority having jurisdiction.

3.13.        Insurance. No
notice has been received from any insurance company which issued any of the insurance
policies or any of their agents, brokers or representatives, stating in effect
that any such policy (i) will not be renewed, (ii) will be renewed only at a
higher premium that is presently payable therefore, or (iii) will be renewed only
with lesser or less complete coverage than is presently provided.

3.14.        No Default.
No event has occurred and is continuing that is an Event of . Default or which would
be an Event of Default with the passage of time or the giving of notice or
both.

3.15.        Condemnation.
There is no pending condemnation, expropriation, eminent domain or similar
proceeding affecting the Land or any portion thereof, and Borrower had not
received any written or oral notice of any thereof and has no knowledge that any
such proceeding is contemplated.

3.16.        Leases: Agreements
for Purchase. There are no leases or agreements of purchase and sale for all or
any portion of the Land.

3.17.        Representations
and Warranties True and Correct. The representations and warranties of Borrower
made to Lender are true, correct and complete in every material respect. No representation,

 5
 

warranty or statement of
Borrower contained herein or in any of the Loan Documents or in any other document,
instrument or certificate delivered to Lender pursuant hereto or in connection with
the transactions contemplated hereunder contains any untrue statement of any
material fact, or omits or shall omit to state a material fact the absence of
which makes such representation, warranty or statement misleading.

3.18         Compliance
With Laws Respecting Acquisition. Borrower shall and has complied with all requirements
of local and state law in connection with the acquisition ofthe Land.

4.   COVENANTS
OF BORROWER

4.1.          Affirmative Covenants.
Borrower covenants and agrees that, from the date hereof and so long as this
Agreement shall remain in effect or the indebtedness evidenced by the Note shall
remain outstanding, Borrower shall:

4.1.1.       Existence.
Do or cause to be done all things necessary to preserve and keep Borrower’s legal
existence in full force and effect under the laws of the State of Delaware and Spitz,
Inc.’s foreign registration in full force and effect under the laws of the Commonwealth
of Pennsylvania and in any other jurisdiction in which Borrower may have been
organized, and to remain and cause Borrower to remain qualified and licensed in
all jurisdictions in which such qualification or licensing is required for the
conduct of Borrower’s business, including, without limitation, Pennsylvania.
Borrower shall promptly deliver to Lender any and all documents evidencing an amendment
to or modification of the articles of incorporation, certificate of organization,
bylaws, operating agreements or other organization documents respecting
Borrower.

4.1.2.       Required Notices.
Give, or cause to be given, prompt written notice to Lender of (i) any action
or proceeding instituted by or against Borrower or the Land by or before any Governmental
Authority, or any such proceeding threatened against Borrower, the Land which,
if adversely determined, could have a material and adverse effect upon the business,
assets or condition (financial, legal or otherwise) of Borrower or the Land, (ii)
any other action, event or condition of any nature which may have a material
and adverse effect upon the business or assets of Borrower or which, with the
giving of notice or the passage of time or both, would constitute an Event of Default
under this Agreement or a default under any other material contract, instrument
or agreement to which Borrower is a party or by which Borrower or any of
Borrower’s properties or assets may be bound or subject, or (iii) any action or
proceeding respecting the current development and use of the Land for
commercial purposes.

4.1.3.       Payment of
Debts, Taxes. Pay and discharge or cause to be paid and discharged when due and
prior to the accrual thereon of interest or penalty, all taxes, assessments and
governmental charges or levies imposed upon the Land, Borrower or their income
or receipts, or any of their properties, as well as all lawful claims for
labor, materials and supplies or otherwise which, if unpaid, might become a lien
or charge upon such properties or any part thereof, unless the same shall be contested
by Borrower in good faith and with due diligence by appropriate proceedings and
Borrower shall have posted a bond or escrow with Lender equal to such contested
amount.

4.1.4.       Compliance. Promptly
and faithfully comply with, conform to and obey all present and future Legal Requirements
applicable to

 6
 

Borrower, or the Land,
all present and future requirements affecting title to the Land, the Loan
Documents, all” agreements of purchase, if any, for all or any portion of the Land,
and all leases now or hereafter entered into from time to time, and all other
agreements and covenants to which Borrower is bound or subject. Promptly and faithfully
comply with, conform to and obey all present and future orders, rules, regulations
and requirements of any national or local board of fire underwriters relating in
any way to the Land or any portion thereof. Promptly pay all license and permit
fees and similar municipal charges relating in any way to the Land or any portion
thereof or the construction or use of any building and improvement placed or to
be placed upon and forming a part of the Land. Borrower shall immediately notify
Lender of Borrower’ s receipt of notice from any Governmental Authority or any national
or local board of fire underwriters relating to the construction, use or occupancy
of the Land or any part thereof, or which requires any action to be taken with respect
to the Land or any part thereof or which could have an adverse effect on the
Land or any part thereof.

4.1.5.       Maintenance.
Cause the Land to be kept in good condition and repair as set forth in the Mortgage,
and operate the same properly, efficiently and in compliance with all Legal
Requirements.

4.1.6.       Books and Records.
Keep, or cause to be kept, in accordance with generally accepted accounting
principles consistently applied, proper and complete books of record and
account concerning affairs of Borrower and the Land and make such records available
in Borrower’s offices at all reasonable times upon reasonable prior notice for inspection
by Lender. Borrower agrees to maintain accounting records for the Land separate
from any other accounting records which Borrower may maintain. Borrower agrees
to retain all such books and records for a period of two (2) years after the repayment
in full of the Loan.

4.1.7.       Financial
Statements. So long as the Loan or any portion thereof remains outstanding, Borrower,
at Borrower’s sole cost and expense, shall deliver or cause to be delivered to
Lender current and complete financial statements and other information on a
consolidated basis as follows:

a.             Within ninety
(90) days following the end of Borrower’s fiscal year and each fiscal quarter, respectively,
in each year, Borrower shall deliver to Lender the Borrower’s Annual Report on
Form 10-KSB and quarterly report on Form 10-QSB, each of which will include
financial statements consisting of a balance sheet, income statement and
statement of source and application of funds for Borrower. Such financial statements
for Borrower (i) shall, in the case of the annual statements be accompanied by
an audit opinion by a certified public accounting firm selected and paid for by
Borrower and satisfactory to Lender (it being agreed that the Borrower’s certified
public accounting firm as of the Closing Date is acceptable to the Lender), (ii)
shall be prepared in accordance with generally accepted accounting principles consistently
applied, (iii) shall be in form reasonably satisfactory to Lender and (iv)
shall be” certified as true, correct and complete by the Borrower’s chief financial
officer.

b.             Borrower shall
deliver to Lender such other financial information as to Borrower as Lender
from time to time may request, all such information to be provided in form and time
frame reasonably satisfactory to Lender.

 7
 

c.             Within thirty
(30) days of the date the same are due for filing (including any available extensions
properly applied for) Borrower shall deliver to Lender copies of Borrower’s Federal
Income Tax Returns. All copies of such returns shall be certified by Borrower
as true and correct and as actually filed with the Internal Revenue Service.

All
such financial statements required by Lender hereunder shall be prepared in accordance
with generally accepted accounting principles consistently applied by an
independent certified public accountant acceptable to Lender. Borrower shall
promptly notify Lender in writing if there is any material adverse change since
the date of the last preceding statement submitted to Lender in the financial position
of Borrower, and if there has been such a change, a detailed explanation
thereof.

4.1.8.
Change in Circumstances. Promptly notify Lender in writing of any change in any
fact or circumstance represented or warranted by Borrower herein or in any other
documents furnished to Lender in connection with this Agreement.

4.1.9.       Additional Instruments.
Execute such additional instruments as may be requested by Lender in order to
carry out the intent of this Agreement and the other Loan Documents and to
perfect or give further assurances of any of the rights granted or provided for
hereunder or under any of the other Loan Documents.

4.1.10.     Indemnification.
Indemnify, defend and hold harmless Lender and its officers, directors, employees
and agents from and against any and all liabilities, losses, claims, damages
and expenses, including reasonable attorneys’ fees and expenses, of any kind or
nature directly or indirectly resulting from or arising out of the Loan, or the
Loan Documents, or any act or omission by Lender or its officers, directors, employees
or agents, in connection therewith, including, without limitation, all claims
for commissions by any broker or intermediary, disputes between or among Borrower,
any Governmental Authorities, subcontractors, material suppliers, purchasers and
tenants, unless caused by the gross negligence or willful malfeasance of Lender
or its officers, directors, employees or agents.

4.1.11.     Reimbursement
of Costs. Reimburse Lender for all of Lender’s costs payable to third parties incidental
to the preparation and making of the Loan, including, without limitation, monthly
credit reports, recording fees, filing fees, surveys and premiums for title insurance
as may be required by Lender, the fees and expenses of any consultant employed
by Lender, and all costs and expenses of Lender’s counsel relating to preparation
or approval of any of the Loan Documents, examination of matters subject to
Lender’s approval and legal services rendered in connection with Borrower’s failure
to perform in accordance with the Loan Documents or otherwise relating to the
transaction. All such costs billed at or prior to the Closing Date shall be
paid on or before the Closing Date.

4.1.12.     Notices.
Forward to Lender copies of all notices given or received by Borrower to or
from; (i) any purchaser or tenant for any portion of the Land, (ii) any subcontractor
or material supplier respecting the Land, (iv) any insurer or insurance underwriters

 8
 

respecting the Land or
Borrower’s business, (v) any utility company respecting the Land or the Borrower’s
business, or (vi) any Governmental Authority respecting the Land or the
Borrower’s business (including, without limitation, notices of nonconforming
construction, notices relating to Hazardous Materials and any Environmental
Laws as those terms are defined in the Note and Mortgage, and notice of inability
to perform the terms of any contract or agreement), promptly upon the giving or
receipt of such notice.

4.1.13.     Loan Proceeds.
Use Loan proceeds for the purposes identified in the Commitment and this Loan
Agreement.

4.1.14.     Bank Accounts.
Borrower shall maintain all deposit, operating and escrow accounts relating to
the Land with Lender.

4.1.15.     Inspection. Permit
Lender, its agents, employees and representatives, to enter and to inspect the
Land at any reasonable time upon one (1) business day prior notice for the
purposes of making site and building investigations and performing soil, groundwater,
structural and other tests. Lender, or any persons designated by it, shall have
the right to call at Borrower’s place or places of business at any reasonable time
upon one (1) business day notice, and without hindrance or delay, to inspect, audit,
check and make extracts from Borrower’s books, records, journals, orders, receipts
and any correspondence and other data relating to the Borrower’s business or to
any other transactions between the parties hereto, and shall have the right to
make direct verification from the account debtors with respect to any or all
accounts.

4.2.          Negative
Covenants. Borrower covenants and agrees that from the date hereof and for so
long as this Agreement shall remain in effect or the indebtedness evidenced by
the Note shall remain outstanding, Borrower shall not:

4.2.1.       Amendment or
Modification. Amend, vary or modify, or permit to be amended, varied or
modified, any agreement, document or instrument assigned to Lender.

4.2.2.       Conveyance. Sell,
assign, transfer, convey, lease or otherwise dispose of the Land, or any part thereof
or interest or estate therein, or otherwise permit ownership or control of the
Land or any portion thereof to be other than in Spitz, Inc.

4.2.3.       Governing Documents,
Directors. Amend, or permit to be amended, the governing documents pursuant to
which Borrower was organized and is operating or permit a change of the
majority of the members of the board of directors of Borrower during any twelve
(12) month period.

4.2.4.       Encumbrances.
Create by mortgage, pledge, assignment, security agreement or otherwise, or
suffer to exist, any security interest, pledge, lien, charge or other
encumbrance upon the Land or any portion thereof, except (i) the liens or security
interests created pursuant to the Loan Documents or other liens or security interests
in favor of Lender; (ii) mechanics or tax liens being contested by Borrower in
good faith and due diligence in appropriate proceedings with the approval of
Lender, a bond or escrow having been posted with Lender for the full amount of
such contested lien; and (iii) with the prior written consent of Lender,
easements and licenses for the operation of the Land.

 9
 

4.2.5.       Other
Borrowing and Guaranties. Undertake any additional financing in connection with
the purchase or improvement of the Land or any part thereof, or borrow, in the
aggregate, any sum in excess of Two Hundred Thousand ($200,000.00) from any
person or persons, or assume, guaranty, endorse or otherwise become contingently
liable upon, or responsible for, the obligation of any person other than as expressly
provided in the Loan Documents, if to do so in the judgment of Lender would have
a material adverse impact on the financial condition or status of Borrower.

5.   EVENTS
OF DEFAULT AND REMEDIES.

5.1.          Events of Default.
The occurrence of anyone or more of the following shall constitute an “Event of
Default” hereunder:

5.1.1.       The occurrence
of an event of default under the Note or any other Loan Document.

5.1.2.       The issuance
of any levy, writ or process of execution or attachment against Borrower or any
property or assets of Borrower, including without imitation the Land, or the
levy or service of any such writ.

5.1.3.       The entry or
filing of any judgment, lien, encumbrance, notice oflien, attachment, levy or
any other adverse charge against Borrower or the Land or any portion thereof which
is not discharged within twenty (20) days unless it is being contested by
Borrower in good faith and due diligence in appropriate proceedings with the approval
of Lender, a bond or escrow having been posted with Lender for the full amount
of such contested lien.

5.1.4.       The failure
of Borrower to comply with the requirements of any Governmental Authority concerning
the Land unless the same shall be contested by Borrower in good faith and with
due diligence by appropriate proceedings and Borrower shall have posted a bond
or escrow with Lender in an amount satisfactory to Lender.

5.1.5.       The failure
of Borrower to maintain any insurance or policy of insurance required by this Agreement
or the Mortgage for a period in excess often (10) days from the date of written
notice from Lender of the lapse or absence of any such insurance or policy of insurance.

5.1.6.       The failure
of Borrower to provide or furnish to Lender within thirty (30) days of written
request, proof of any insurance or policy of insurance required by this
Agreement or the Mortgage.

5.1.7.       The failure
of Borrower to provide or furnish to Lender within thirty (30) days of written
request, any financial statement, tax return or other information required to
be delivered to Lender pursuant to this Agreement or any other Loan Document.

5.1.8.       The failure
of Borrower to comply, after any applicable notice or cure period, with any requirements
of any recorded instrument or other agreement concerning the Land.

 10
 

5.1.9.       The making
by Borrower of any amendment to or modification to any document, instrument or
item which has been approved by Lender in accordance with the provisions hereof

5.1.10.     The failure
by Borrower to pursue promptly and with due diligence and in good faith any
remedy under any contract or agreement with respect to the Land available as
the result of any material default by the other party thereto.

5.1.11.     The failure
of Borrower to perform or comply with any of the terms, conditions, provisions,
agreements and covenants contained herein or in any of the Loan Documents or in
any other document, agreement or instrument given by or in behalf of Borrower in
connection with the Loan.

5.1.12.     The default by
Borrower or any affiliate, owner or subsidiary thereof, under any other loans
or indebtedness between Lender and Borrower or any affiliate, owner or subsidiary
thereof, including without limitation the occurrence of an event of default under
that certain Line Of Credit Agreement dated June 12, 1997 between Lender and Borrower,
amended by that certain Modification Agreement dated July 7, 2000, and further amended
by that certain Second Modification Agreement dated July 18, 2002, respecting a
Two Million ($2,000,000.00) Dollar commercial revolving line of credit.

5.1.13.     The falsity or
incorrectness, regarded by Lender as material, of any representation or
warranty made to Lender, or any financial statement given to Lender, by
Borrower in or in connection with the Loan, this Agreement or any of the Loan
Documents.

5.2.          Remedies.
Upon the occurrence of any Event of Default, Lender may exercise as it may deem
necessary or appropriate, any one or more of the following rights and remedies:

5.2.1.       Declare immediately
due and payable all sums under the Note which are then unpaid, together with
all accrued interest.

5.2.2.       Exercise any
other right or remedy provided herein, in any of the Loan Documents, at law or
in equity.

5.3.          Verification
of Amounts Due/Declaration of No Set-Off. In any action or proceeding for recovery
of any sums expended by Lender in connection with the operation and/or maintenance
of the Land or otherwise due to Lender pursuant to the terms hereof, a statement
of such expenditures, verified by the affidavit of an officer of Lender, shall
be prima facie evidence of the amounts so expended and of the propriety of and necessity
for such expenditures, and the burden of proving the contrary shall be upon
Borrower. Within ten (10) days after being requested to do so by Lender, Borrower
shall furnish to Lender or to any assignee of the Note and/or the Mortgage, a
written statement in form and substance satisfactory to Lender stating the entire
outstanding amount of the indebtedness evidenced by the Note and stating that Borrower
has no offsets, recoupments, counterclaims or defenses or, if such offsets, recoupments,
counterclaims or defenses are alleged to exist, the nature and extent thereof. In
the event Borrower fails to furnish to Lender a written statement within ten
(10) days after being requested to do so, or if such

 11
 

statement does not
contain all of the information required, then except to the extent set forth in
Borrower’s timely delivered written statement, Borrower shall be deemed to
accept and concur with Lender’s statement of the entire outstanding amount of
the indebtedness evidenced by the Note and agree that Borrower has no offsets,
recoupments, counterclaims or defenses.

5.4.          Borrower’s Property.
As security for the Loan and for the obligation and liabilities of Borrower
hereunder and under each of the Loan Documents, Lender is hereby given a lien
upon and a security interest in all funds and property of Borrower which may
hereafter be deposited with or come into the possession of Lender, and for such
purpose this Agreement shall constitute a security agreement under the Pennsylvania
Uniform Commercial Code and Lender shall have all rights and may exercise all
of the remedies of a secured party under the applicable provisions of the Pennsylvania
Uniform Commercial Codes with respect to such funds and property of Borrower.

5.5.          Remedies Cumulative.
The rights and remedies of Lender provided for in this Agreement, in any of the
other Loan Documents, and in any other instrument, document or agreement given
by or on behalf of Borrower in connection with the Loan, shall be cumulative
and concurrent and shall not be exclusive of any right or remedy provided by
law, in equity or otherwise. Said rights and remedies may, at the sole and exclusive
discretion of Lender, be pursued singly, successively or together, and may be
exercised as often as occasion therefore shall arise. No grace period, qualification
or condition stated with respect to any Event of Default shall change, modify, amend
or extend, or will be construed as an undertaking by Lender to change, modify, amend
or extend the time for making any installment due under the Note or the
Maturity Date, which time for making any installment and Maturity Date remain
always of the essence of this Agreement.

5.6.          Lender’s
Right to Remedy Defaults. If Borrower fails to pay when due any sum required to
be paid by Borrower or fails to perform any obligation of Borrower hereunder, Lender,
at its option; upon at least ten (10) days prior notice to Borrower, shall have
the right, but not the obligation, to pay any such sum and to perform any such obligation
and Lender shall have the right, but not the obligation, to pay any sum or to take
any action which Lender deems necessary or advisable to protect the security for
the Loan including without limitation the Mortgage and the Land, all without
prejudice to any of Lender’s rights or remedies available hereunder or under
any of the Loan Documents or under any other documents or instrument given by
or on behalf of Borrower in connection with the Loan, at law, or in equity. The
amount of all payments so made by Lender, together with all costs so incurred
by Lender, shall immediately be due and payable from Borrower to Lender, together
with interest at the rate set forth in the Note in the event of a default. All
such amounts, together with interest as aforesaid, shall be added to and
evidenced by the Note and be secured by the Mortgage, and Lender may charge all
such amounts and interest as advances of the Loan and may deduct such amounts
and interest as advances of the Loan thereafter to be advanced hereunder from
any funds or property deposited by Borrower with Lender.

6.   INSURANCE.

6.1.          Coverage. Borrower
shall, from and after the date hereof and at all times while this Agreement is in
effect or the Note remains outstanding, maintain at Borrower’s sole expense, insurance
in amounts, with deductibles satisfactory to Lender written by stock or
nonassessable

 12
 

mutual carriers licensed
in Pennsylvania with a general policy holders rating of “A” or better and a
financial rating of VI or better in the most recent edition of “Best’s Key
Rating Guide, Property-Casualty”, published by Alfred M. Best Co., Inc. Without
limiting the generality of the foregoing, Borrower shall maintain the following
minimum coverages, unless otherwise agreed to in writing by Lender:

6.1.1.       All risk, fire,
hazard and extended coverage insurance with vandalism and malicious mischief endorsements
on all buildings and structures to the extent of one hundred percent (100%) of
the replacement value thereof pursuant to full replacement value endorsements naming
Lender as mortgagee and additional insured pursuant to a standard mortgagee
loss payable clause, and;

6.1.2.       Commercial
general public liability insurance covering all operations of Borrower in connection
with the Collateral, with contractual liability endorsement, naming Lender as
additional insured in amounts not less than: (i) bodily injury: $3,000,000,000 for
each occurrence, $3,000,000,900 in the aggregate, and (ii) property damage: $1,000,000,000
for each occurrence, and $3,000,000_000 in the aggregate; and

6.1.3.       Rent insurance
against loss of income arising out of damage or destruction by fire or the perils
of extended coverage insurance, in an amount equal to one (1) year’s gross
rental income to the owner of the Land, or business interruption insurance in
an amount as required by Lender from time to time, but not to exceed Mortgagee’s
reasonable estimate of the annual cost of debt service on the Note, taxes;
insurance and maintenance for the Land.

6.2.          Certificates;
Notices.

6.2.1.       Borrower
shall furnish to Lender, certificates certifying to the insurance required by
Paragraph 6.1, (as Lender may request) and expressly granting Lender the same protections
as if Lender held the original policies, (i) on or before the closing date, (ii)
no fewer than twenty (20) days prior to the renewal or replacement of existing
coverage or the obtaining of additional coverage, and (iii) at any other time
upon the request of Lender.

6.2.2.       Each insurance
policy of Borrower shall contain a provision (i) requiring the insurer to
notify Lender, in writing and at least thirty (30) days in advance of any cancellation,
expiration or material change in the policy, and (ii) stating that any loss otherwise
payable thereunder shall be payable notwithstanding any act or neglect of the
insured and notwithstanding ( a) any change in title to or ownership of the Land
or (b) any provision of the policy relieving the insurer thereunder of
liability for any loss by reason of the existence of other policies of insurance
covering the Land against the peril involved, whether or not collectible, provided
such coverage is available to Borrower at reasonable cost.

6.2.3.       If the
insurance, or any part thereof, shall expire, or be withdrawn, or become void
or unsafe, in the opinion of Lender, by reason of Borrower’s breach of any
condition thereof, or become void or unsafe, in the opinion of Lender, by
reason of the failure or impairment of the capital of any company issuing such certificates,
Borrower shall place new insurance in accordance with this Agreement. All
renewal policies, with premiums paid, shall be delivered to Lender at least thirty
(30) days prior to the expiration of the existing policies.

 13
 

6.2.4.       The
insurance described in Paragraph 6.1 hereof shall not provide for deductibles
in excess of amounts approved by Lender and, though obtained, maintained and
paid for by Borrower, shall provide that loss thereunder shall be payable to
Lender under a standard mortgagee’s loss payee clause.

6.3.          Lender May
Provide Insurance. In any instance where insurance is not provided by Borrower
as required hereunder, Lender may at its option, but shall not be required to, secure
such insurance as Lender deems appropriate to cover Lender’s interests, without
obligation to insure Borrower’s interests, and charge the cost of the same to
Borrower, to be secured by the Loan Documents.

7.   MISCELLANEOUS.

7.1.          Lender’s
Discretion. If any condition of this Agreement requires the submission of
evidence of the existence or non-existence of a specified fact or facts, or
implies as a condition the existence or non-existence of such fact or facts, Lender
will, at all times, be free independently to establish to its satisfaction and
in its discretion (unless otherwise specified) such existence or non-existence.
Where any matter herein requires the approval or consent of the Lender, the decision
to give or refuse to give such approval or consent shall be within Lender’s
discretion unless otherwise specified.

7.2.          No Third-Party
Beneficiary. The parties do not intend the benefits of this Agreement to inure
to any third party or any of their respective creditors for debts or claims accruing
to any such persons against Borrower. Lender shall not be liable for the manner
in which any advance may be applied by Borrower. Notwithstanding anything contained
herein or in any of the other Loan Documents, or any conduct or course of conduct
by or between Borrower and Lender before or after the execution of this Agreement,
this Agreement shall not be construed as creating any right, claim or cause of
action against Lender or any of its officers, directors, agents or employees, in
favor of any other person other than Borrower. Without limiting the generality
of the foregoing, any advances made to any insurer, contractor, subcontractor or
supplier of labor or materials or other creditor of Borrower, whether or not
such advances are approved by Lender, shall not be deemed a recognition by
Lender of third party beneficiary status of any such person. No part of the
Loan will be at any time subject or liable to attachment or levy at the suit of
any creditor of Borrower, or of any contractor, subcontractor or supplier of labor,
materials or services, or any of their respective creditors, and regardless of
any other term, condition or provision hereof, no such third party will have
any status, right or entitlement hereunder.

7.3.          Reliance on Representations
and Warranties. Lender shall be entitled to rely upon the representations and warranties
of Borrower set forth in any of the Loan Documents without any investigation by
Lender and notwithstanding any investigation conducted by Lender or on its behalf
before or after the date hereof.

7.4.          Assignment.

7.4.1.       The rights
of Borrower hereunder and under any other Loan Document shall not be assignable
in any respect without the prior

 14
 

written consent of
Lender, which consent may be granted or withheld in Lender’s sole discretion. In
any case, Borrower shall remain liable for repayment of all sums advanced hereunder
before and after such assignment.

7.4.2.       All or any portion
of the Loan or any of the Loan Documents may be endorsed, assigned or
transferred in whole or in part by Lender, and any such holder or assignee thereof
shall succeed to and be possessed of the rights of Lender under the Loan Documents
to the extent so endorsed, transferred or assigned.

7.4.3.       Subject to
the foregoing, this Agreement shall be binding upon, and shall inure to the
benefit of, Borrower and Lender and their respective personal representatives,
heirs, successors and assigns.

7.5.          Communications.
All communications required or permitted by this Agreement shall be in writing and
shall be deemed to have been given or made when hand delivered or delivered by
guaranteed overnight delivery, or upon deposit in the United States mail, postage
prepaid, certified or registered mail, return receipt requested, addressed as
follows:

7.5.1.       If to
Lender:

First Keystone Bank

22 West State Street

Media, Pennsylvania 19063

Attention: A. Charles Amentt, Jr.

Senior Vice President, Lending

                With a
required copy to:

Donn L. Guthrie, Esquire

10 Beatty Road 

Media, Pennsylvania 19063

7.5.2.       If to
Borrower:

Transnational
Industries, Inc. and 

Spitz, Inc. 

P.O. Box 198 

Route 1 

Chadds Ford, Pennsylvania 19317

                With a
required copy to:

Steven G.Brown, Esquire 

Petrikin, Wellman, Damico, Brown & Petrosa 

109 Chesley Drive 

Media, Pennsylvania 19063

 15
 

or
in any case to such other address as either party may designate from time to
time by notice to the other in the manner set forth herein.

7.6.          Headings. The
headings preceding the text of the sections and subsections of this Agreement
are used solely for convenience of reference and shall not affect the meaning
or interpretation of this Agreement.

7.7.          Time of the Essence.
All dates and times for performance set forth herein or in any of the other Loan
Documents (whether or not elsewhere so stated) are of the essence.

7.8.          No Brokers. Borrower
represents and warrants that Borrower has taken no action which would or might render
it liable for payment of any brokerage or placement fees or commissions on
account of the transactions contemplated by the Loan Documents, and Borrower
will indemnify, defend and hold harmless Lender from any claims made in
connection therewith.

7.9.          Governing Law.
The Agreement and all questions relating to its validity, interpretation, performance
and enforcement (including, without limitation, provisions concerning limitations
of actions), shall be governed by and construed in accordance with the laws of
the Commonwealth of Pennsylvania, notwithstanding any conflict-of-laws doctrines
of such state or other jurisdiction to the contrary, and without the aid of any
canon, custom or rule of law requiring construction against the draftsman.

7.10.        Severability.
Any provision in any of the Loan Documents which is determined to be unenforceable
or invalid shall be ineffective to the extent of such unenforceability or invalidity
without affecting the remaining provisions thereof.

7.11.        Survival.
All agreements, representations and warranties made in this Agreement shall
survive the closing hereunder and the making of all advances hereunder.

7.12.        Entire Agreement:
Controlling Document; Amendment. This Agreement, together with the exhibits
hereto, which are incorporated herein by reference, and the other Loan
Documents embody the entire agreement and understanding between Borrower and
Lender with respect to the subject matter hereof and supersede all prior commitments,
agreements and understandings relating to the subject matter hereof. The
provisions of this Agreement (including the exhibits attached hereto) shall be
deemed complementary to the provisions of the other Loan Documents, but in the event
of conflict, the provisions hereof shall be deemed to modify and supersede the conflicting
provisions in such other Loan Documents and to control to the extent enforceable
under applicable law. Neither this Agreement nor any of the other Loan Documents
may be modified or amended except by a written agreement executed by the party against
which enforcement is sought.

7.13.        Indulgences,
Etc. Neither the failure nor any delay on the part of either party to exercise any
right, remedy, power or privilege under this Agreement (a “Right”) shall
operate as a waiver thereof, nor shall any single or partial exercise of any
Right preclude any other or further

 16
 

exercise of the same or
of any other Right, nor shall any waiver of any Right with respect to any
occurrence be construed as a waiver of such Right with respect to any other occurrence.
No waiver shall be effective unless it is in writing and. is signed by the
party asserted to have granted such Waiver.

7.14         Counterparts.
This Agreement may be executed in one or more counterparts, via facsimile
transmission or otherwise, each of which will be deemed an original, but all of
which together will constitute one and the same instrument.

7.15.        TRIAL BY
JURY. BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
ANY RIGHT EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT, THE
NOTE, THE MORTGAGE, ANY OTHER DOCUMENT OR INSTRUMENT RELATING HERETO OR THERETO,
ANY OTHER TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE
LENDER OR BORROWER IN CONNECTION HEREWITH OR THEREWITH. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE LENDER TO MAKE THE LOAN EVIDENCED BY THE NOTE.

[THIS
SPACE INTENTIONALLY LEFT BLANK. SIGNATURE PAGE FOLLOWS.]

 17
 

IN
WITNESS WHEREOF, and intending to be legally bound hereby, Borrower and Lender,
have caused this Agreement to be duly executed under seal as of the date first
above written.

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  FIRST KEYSTONE
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ A. Charles Amentt, Jr.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  TRANSNATIONAL
  INDUSTRIES, INC.

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ Jonathan Shaw

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ATTEST:

  	
  /s/ Paul Dailey

  
	
   

  	
  [Corporate Seal]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SPITZ, INC.

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ Jonathan Shaw

  
	
   

  	
   

  
	
   

  	
  ATTEST:

  	
  /s/ Paul Dailey

  
	
   

  	
  [Corporate Seal]

  
				

 

 18EXHIBIT
10.28

FIRST MODIFICATION
AGREEMENT

THIS
FIRST MODIFICATION AGREEMENT (the “Agreement”)  is made and entered into this   30 th   day of March,
2007, by and between First Keystone Bank (the “Bank”), chartered under the Laws
of the United States of America, having its principal office at 22 West State
Street, Media, Pennsylvania, 19063, Spitz, Inc., a
Delaware corporation (the “Borrower”), with an address of P.O. Box 198, Route
1, Chadds Ford, Pennsylvania, 19317, and Evans & Sutherland
Computer Corporation, a Utah corporation (the “Guarantor”).  The Bank, Borrower and Guarantor are
sometimes herein referred to as a “Party” and collectively as the “Parties”.

Background

A.            Bank extended to
Borrower and Transnational Industries, Inc., a
Delaware corporation (“Transnational”), a credit facility on January 14, 2004,
(the “Loan”) in the original principal sum of Three
Million Two Hundred Thousand Dollars ($3,200,000.00) evidenced by
that certain Mortgage Note (the”Note”) made by Borrower and Transnational and
delivered to Bank on January 14, 2004. 
The Loan was advanced to finance the acquisition of the premises known
as Route 1, Chadds Ford Township, Delaware County,
Pennsylvania, being Folio No. 04-00-00034-02 and operated by
Borrower as its principal business office.

B.            The Loan is
further evidenced by that certain Loan Agreement by and among the Borrower,
Transnational and Bank dated January 14, 2004 (the “Loan Agreement”).

C.            In addition to the
Loan, Bank extended to Borrower a line of credit facility in the original
maximum principal sum of Three Million Dollars ($3,000,000.00) (the “Line of
Credit”) to be advanced pursuant to that certain Line of Credit Agreement
between Borrower, Guarantor and Bank dated April 28, 2006 (the Line of Credit
Agreement”).

D.            On or about April 28, 2006,
Transnational sold all of Transnational’s one hundred percent (100%) ownership
interest in and to Borrower to Guarantor.

E.             In connection with the origination
of the Line of Credit and the sale by Transnational of all of Transnational’s
interests in and to Borrower, Bank released Transnational as a co-borrower
under the Loan as more fully set forth in the Line of Credit Agreement.

F.             The Loan
Agreement sets forth certain financial covenants of the Borrower, including
without limitation a covenant to deliver to Bank within ninety (90) days
following the end of Borrower’s fiscal year and each fiscal quarter,
respectively, in each year, the Borrower’s Annual Report on Form 10-KSB and
quarterly report on Form 10-QSB, (the “Financials”), and a covenant to provide
Bank, within thirty (30) days of the date the same are due for filing, copies
of Borrower’s Federal Income Tax Returns (the “Tax Returns”).

 

G.            Guarantor is a publicly traded
company and, pursuant to the Line of Credit Agreement, has agreed to provide to
Bank, within ninety (90) days following the end of Guarantor’s fiscal year and
each fiscal quarter, respectively, in each year, Guarantor’s Annual Report on
Form 10-K and quarterly report on Form 10-Q.

H.            As a wholly owned
subsidiary of Guarantor, Borrower is no longer required to prepare separate
audited financials or file a separate income tax return and Borrower and
Guarantor have requested that Bank waive the requirement that Financials and
Tax Returns be provided.

I.              As of the date
hereof the outstanding principal balance of the Loan is Two Million
Nine Hundred Thirteen Thousand Dollars Nine Hundred Sixty Two and 53/100
dollars ($2,913,962.53).

J.             Guarantor has agreed to guarantee
the Loan as more fully set forth in that certain Guaranty dated even date
herewith (the “Guaranty”) in consideration of the agreement of Bank to grant
Borrower’s and Guarantor’s aforementioned request and modify the terms of the
Loan Agreement.

K.            Bank has no
obligation to modify the terms of the Loan. Bank is willing to grant Borrower’s
and Guarantor’s aforementioned request on the terms and conditions set forth in
this Agreement.

Agreement

NOW
THEREFORE, in consideration of the sum of One ($1.00) Dollar
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and intending to be legally bound hereby, the parties
hereto hereby covenant and agree as follows:

1.             The Background
recitals are incorporated herein by reference.

2.             Sections 4.1.7
(a) and (c) of the Loan Agreement respecting the requirement that Borrower
provide Financials and Tax Returns to the Bank are deleted in their entirety.

3.             So long as the Loan or any portion
thereof remains outstanding, Guarantor, at Guarantor’s sole cost and expense,  shall deliver or cause to be delivered to Bank
current and complete financial statements and other information as follows:

(a)           Within ninety (90) days following the
end of Guarantor’s fiscal year and each fiscal quarter, respectively, a copy of
Guarantor’s Annual Report on Form 10-K and quarterly report on Form 10-Q, each
of which will include financial statements consisting of a balance sheet,
income statement and statement of source and application of funds for
Guarantor.  Such financial statements for
Guarantor shall: (i) in the case of the annual statements be accompanied by an
audit opinion by a certified public accounting firm selected and paid for by
Guarantor and satisfactory to Bank (it being agreed that Guarantor’s current
certified public accounting firm or other nationally recognized public
accounting firm is acceptable to the Bank), (ii) be prepared in accordance with
generally accepted accounting principles consistently applied, (iii) be

 2
 

 

in form reasonably
satisfactory to Bank and (iv) be certified as true, correct and complete by
Guarantor’s chief financial officer.

(b)           Such additional financial and other
information as the Bank  may from time
to time reasonably request, subject to applicable Securities laws and other
requirements for publicly traded companies.

Guarantor shall
promptly notify Bank  in writing if there
is any material adverse change since the date of the last preceding statement
submitted to Bank in the financial position of Guarantor, and if there has been
such a change, a detailed explanation thereof.

4.             Borrower and
Guarantor hereby ratify and affirm all of the terms, conditions and provisions
of the Loan Agreement, the Note, the Guaranty and all other documents executed
and delivered by Borrower or Guarantor in connection with the Loan, to the
extent the same are not otherwise expressly modified herein.  It is expressly agreed and understood that
except as expressly provided in this Agreement, the terms, conditions and
provisions set forth in the Loan Agreement, the Note, and all other documents
executed and delivered by Borrower or Guarantor in connection with the Loan
shall remain in full force and effect in accordance with their respective
terms, conditions and provisions. 
Without limiting the generality of the foregoing, nothing in this
Agreement shall be construed to:

(i)            impair the validity, perfection
or priority of any lien or security interest securing the Loan;

(ii)           waive or impair any rights,
powers or remedies of Bank under the Loan Agreement, the Note, the Guaranty and
all other documents executed and delivered by Borrower or Guarantor in
connection with the Loan with respect to any defaults thereunder which may
occur;

(iii)         require Bank to hereafter amend or
modify the terms of the Loan Agreement, the Note, the Guaranty or any other
documents executed and delivered by Borrower or Guarantor in connection with
the Loan; or

(iv)          make any other loan or other
extension of credit to Borrower or Guarantor.

In the event of
any inconsistency between the terms of this Agreement and the Loan Agreement,
this Agreement shall govern.  Borrower
and Guarantor each acknowledge that it has consulted with counsel in connection
with the negotiation and delivery of this Agreement.  This Agreement shall be construed without
regard to any presumption or rule requiring that it be construed against the
party causing this Agreement or any part of this Agreement to be drafted.

5.             Borrower and
Guarantor hereby acknowledge and agree that no setoff or counterclaim to
Borrower’s and Guarantor’s obligations evidenced by the Loan Agreement, the
Note, the Guaranty and all other documents executed and delivered by Borrower
or Guarantor in connection with the Loan exists, and no agreement has been made
with any person under which any deduction or discount may be claimed, that to
the best of Borrower’ s and Guarantor’s knowledge, information and

 3
 

 

belief, no Event
of Default (as defined in the Loan Agreement) has occurred which is continuing
and no event has occurred which with the passage of time or the giving of
notice or both, could become an Event of Default under the Loan Agreement.

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

	
  

  	
   

  	
  BANK:

  	
   

  	
   

  
	
   

  	
   

  	
  FIRST KEYSTONE BANK

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ David Ffrench

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BORROWER:

  	
   

  	
   

  
	
   

  	
   

  	
  SPITZ, INC., A Delaware
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Calvin
  Eddings

  	
   

  	
  BY: /s/ Paul L. Dailey

  	
   

  	
   

  
	
  Witness

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Calvin
  Eddings

  	
   

  	
  ATTEST: /s/ David H. Bateman

  
	
  Witness

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Corporate Seal]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GUARANTOR:

  	
   

  	
   

  
	
   

  	
   

  	
  EVANS & SUTHERLAND COMPUTER

  CORPORATION, a Utah Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Calvin
  Eddings

  	
   

  	
  BY: /s/ David H. Bateman

  
	
  Witness

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Calvin
  Eddings

  	
   

  	
  ATTEST: /s/ Paul L. Dailey

  
	
  Witness

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Corporate Seal]

  

 

 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]