Document:

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                                  EXHIBIT 10.26

                             STOCK PLEDGE AGREEMENT

                  STOCK PLEDGE AGREEMENT dated as of July 22, 2000 made by
Richard J. Massey ("PLEDGOR"), to IGEN International, Inc., a Delaware
corporation ("COMPANY"), to secure the obligations of Pledgor pursuant to the
Promissory Note of even date herewith (the "NOTE") by and between Company and
Pledgor.

                  WHEREAS, Pledgor is the owner of certain assets and properties
including, without limitation, the shares of stock described on Schedule I
hereto; and

                  WHEREAS, Pledgor expects to benefit directly and indirectly
from the transactions pursuant to which the Note is being issued and is entering
into this Agreement as a condition to those transactions and to Company agreeing
to the terms of the Note, a form of which is attached hereto as EXHIBIT A ;

                  NOW, THEREFORE, in consideration of the premises and in order,
INTER ALIA, to induce Company to enter into the Note and the transactions
pursuant to which the Note is being issued, Pledgor hereby agrees with Company
for its benefit as follows:

                  SECTION 1. GRANT OF SECURITY. Pledgor hereby assigns and
pledges to Company for its benefit, and hereby grants to Company for its benefit
a first priority lien on, and security interest in, the following (collectively,
the "COLLATERAL"), to the extent it is lawfully able to do so:

                  (a) all of Pledgor's right, title and interest in and to the
shares of stock described on Schedule I hereto and made a part hereof, all
increases or profits received therefrom, and all substitutions therefore
("PLEDGED STOCK"); and

                  (b) all proceeds of any and all of the foregoing Collateral,
including, without limitation, proceeds that constitute property of the types
described in clause (a) of this Section 1 and, to the extent not otherwise
included, all (i) payments under any indemnity, warranty or guaranty, payable by
reason of loss or damage to or otherwise with respect to any of the foregoing
Collateral and (ii) cash.

                  SECTION 2. SECURITY FOR OBLIGATIONS. This Agreement secures
the payment or performance of all obligations of Pledgor now or hereafter
existing under the Note and this Agreement (such obligations being the
"OBLIGATIONS"). Without limiting the generality of the foregoing, this Agreement
secures the payment of all amounts that constitute part of the Obligations and
would be owed by Pledgor to Company under the Note and this Agreement.

                  SECTION 3.  REPRESENTATIONS AND WARRANTIES.  Pledgor
represents and warrants as follows:

                  (a) Pledgor is the legal and beneficial owner of the
Collateral free and clear of any encumbrance, except for the security interest
created by this Agreement. No effective financing statement or other instrument
similar in effect covering all or any part of the Collateral is on file in any
recording office, except such as may have been filed in favor of Company.

                  (b) This Agreement and the pledge and assignment of the
Collateral pursuant hereto create a valid and perfected first priority security
interest in the Collateral, securing the payment of the Obligations, and all
filings and other actions necessary or reasonably desirable to perfect and
protect such security interest have been duly taken.

<PAGE>

                  (c) No consent of any other person or entity and no
authorization, approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body or other third party is required
either (i) for the grant by Pledgor of the assignment and security interest
granted hereby or for the execution, delivery or performance of this Agreement
by Pledgor, (ii) for the perfection or maintenance of the pledge, assignment and
security interest created hereby (including the first priority nature of such
pledge, assignment or security interest) or (iii) for the exercise by Company of
its voting or other rights provided for in this Agreement or the remedies in
respect of the Collateral pursuant to this Agreement.

                  SECTION 4. FURTHER ASSURANCES. (a) Pledgor agrees that from
time to time, at its expense, it will promptly execute and deliver all further
instruments and documents, and take all further action, that may be necessary or
reasonably desirable, or that Company may reasonably request, in order to
perfect and protect any pledge, assignment or security interest granted or
purported to be granted hereby or to enable Company to exercise and enforce its
rights and remedies hereunder with respect to any Collateral. Without limiting
the generality of the foregoing, Pledgor will: (i) deliver and pledge to Company
hereunder such certificate representing the Pledged Stock duly endorsed and
accompanied by duly executed instruments of transfer or assignment, all in form
and substance satisfactory to Company; (ii) execute and file such financing or
continuation statements, or amendments thereto, and such other instruments or
notices, as may be necessary or reasonably desirable, or as Company may
reasonably request, in order to perfect and preserve the pledge, assignment and
security interest granted or purported to be granted hereby; and (iii) prepare,
supplement or amend, and attach hereto, such additions to Schedule I hereto as
Company may reasonably request from time to time to more particularly identify
the Collateral, together with such amendments hereto, if any, as may be
appropriate to incorporate the same herein.

                  (b) Pledgor hereby authorizes Company to file one or more
financing or continuation statements, and amendments thereto, relating to all or
any part of the Collateral without the signature of Pledgor where permitted by
law. A photocopy or other reproduction of this Agreement or any financing
statement covering the Collateral or any part thereof shall be sufficient as a
financing statement where permitted by law.

                  (c) Pledgor will furnish to Company from time to time
statements and schedules further identifying and describing the Collateral and
such other reports in connection with the Collateral as Company may reasonably
request, all in reasonable detail.

                  (d) Pledgor will use its best efforts to secure any consents
of third parties that may be necessary or reasonably appropriate in connection
with (i) the perfection or enforcement of any security interest granted or
contemplated to be granted hereunder, and (ii) in connection with any transfer
of the Pledged Stock which may be required in accordance with the terms of this
Agreement.

                  SECTION 5. PLEDGED STOCK. (a) So long as no Event of Default
(as such term is defined in Section 10(e) hereof) has occurred and is
continuing, Pledgor shall be entitled to exercise any and all voting and other
consensual rights pertaining to the Pledged Stock or any part thereof for any
purpose not inconsistent with the terms of this Agreement; PROVIDED, HOWEVER,
that Pledgor shall not exercise or refrain from exercising any such right if, in
Company's reasonable judgment, such action would have a material adverse effect
on the value of the Pledged Stock or any part thereof. Company shall execute and
deliver (or cause to be executed and delivered) to Pledgor all such proxies and
other instruments as Pledgor may reasonably request for the purpose of enabling
Pledgor to exercise its voting and other rights as provided in the preceding
sentence.

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                  (b) If an Event of Default occurs, and so long as it
continues, all of Pledgor's rights to exercise any voting or other consensual
rights pertaining to the Pledged Stock or any part thereof shall cease, and all
such rights shall thereupon become vested in Company, which shall thereupon have
the sole right to exercise such voting and other consensual rights. In
furtherance of the immediately preceding sentence, Pledgor irrevocably
constitutes and appoints Company, effective upon the occurrence and during the
continuance of an Event of Default, as Pledgor's proxy with full power, in the
same manner, to the same extent and with the same effect as if Pledgor were to
do the same, and whether or not the Pledged Stock has been transferred into the
name of Company or its nominee: (i) to attend all meetings of stockholders of
the issuer of the Pledged Stock (the "Issuer") and to vote the Pledged Stock at
such meetings in such manner as Company shall, in its sole discretion, deem
appropriate, including, without limitation, in favor of the liquidation of the
Issuer; (ii) to consent, in the sole discretion of Company, to any and all
action by or with respect to the Issuer for which the consent of the
stockholders of such Issuer is or may be necessary or appropriate and without
limitation, to do all things which Pledgor can or could do as a stockholder of
the Issuer, giving to Company full power of substitution and revocation.
Notwithstanding the foregoing, Company may, at its option upon notice to
Pledgor, elect to postpone having its voting and other rights and the foregoing
proxy become exercisable, even though an Event of Default has occurred and is
continuing. The foregoing proxy shall terminate when this Agreement is no longer
in full force and effect as hereinafter provided. Pledgor hereby revokes any
proxy or proxies heretofore given by Pledgor to any person or persons whatsoever
and agrees not to give any other proxies in derogation hereof until this
Agreement is no longer in force and effect as hereinafter provided.

                  (c) All certificates representing the Pledged Stock shall be
delivered to and held by, or on behalf of, Company and shall be accompanied by
duly executed instruments of transfer or assignment in blank, all in form and
substance satisfactory to Company. Pledgor hereby authorizes Company to transfer
the Pledged Stock or any part thereof into Company's own name or that of its
nominee so that Company or its nominee may appear of record as the sole owner
thereof. In such event, Company and its nominee shall not be required to deliver
to Pledgor, or to notify Pledgor of, any notices, statements or other
communications received by Company or its nominee as such registered owner.

                  (d) So long as no Event of Default has occurred and is
continuing, Pledgor shall be entitled to receive and retain any and all
dividends paid in respect of the Pledged Stock; PROVIDED, HOWEVER, that any and
all (i) dividends paid or payable other than in cash in respect of, and
instruments, stock and other property received, receivable or otherwise
distributed in respect of, upon the subdivision or combination of, or in
exchange for, any Pledged Stock, (ii) dividends and other distributions paid or
payable in cash in respect of any Pledged Stock in connection with a partial or
total liquidation or dissolution or in connection with a reduction of capital,
capital surplus or paid-in-surplus, and (iii) cash paid, payable or otherwise
distributed in respect to redemption of, or in exchange for, any Pledged Stock,
shall be, and shall forthwith be delivered to Company to hold as Collateral and
shall, if received by Pledgor, be received in trust for the benefit of Company,
be segregated from the other property or funds of Pledgor, and be delivered
immediately to Company as Collateral in the form received (with any necessary
endorsement). If Company receives any dividends that Pledgor is entitled to
retain under this subsection; Company shall pay them promptly to Pledgor.

<PAGE>

                  (e) If an Event of Default occurs, and so long as it
continues, all of Pledgor's rights to receive and retain dividends in respect of
the Pledged Stock shall cease, and such rights shall thereupon be vested in
Company, which shall thereupon have the sole right to receive such dividends.
Pledgor will not demand or receive any dividends in contravention of this
subsection. If Pledgor receives any such dividends or other income without any
demand by it, Pledgor shall receive them in trust for Company, shall segregate
them from any other property or funds of Pledgor, and shall deliver them
immediately to Company in the form received (with any necessary endorsement).
Company may apply the net cash receipts from such dividends to payment of any of
the Obligations provided that Company shall account for and pay over to the
Pledgor any such dividends remaining after payment in full of the Obligations.

                  (f) Whether or not an Event of Default has occurred, Pledgor
authorizes Company: (i) to receive any increase in or profits on the Pledged
Stock (which, for the purposes hereof, shall not include cash dividends) and to
hold the same as part of the Pledged Stock; and (ii) to receive any payment or
distribution on the Pledged Stock upon redemption by, or dissolution and
liquidation of, the Issuer; to surrender the Pledged Stock or any part thereof
in exchange therefor; and (iii) to hold the net cash receipts from any such
payment or distribution as part of the Pledged Stock.

                  (g) If Pledgor receives any such increase, profits, payments
or distributions, Pledgor will receive and deliver the same promptly to Company
on the same terms and conditions set forth in the proviso to the first sentence
of subsection (d) above respecting certain dividends or other distributions, to
be held by Company as part of the Collateral.

                  SECTION 6. TRANSFERS AND OTHER ENCUMBRANCES. Pledgor shall not
(i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or
grant any option with respect to, any of the Collateral, or (ii) create or
suffer to exist any Encumbrance upon or with respect to any of the Collateral
except for the pledge, assignment and security interest created by this
Agreement or permitted pursuant to the Note.

                  SECTION 7. COMPANY APPOINTED ATTORNEY-IN-FACT. Pledgor hereby
irrevocably appoints Company as its attorney-in-fact, with full authority in its
place and stead and in its name or otherwise, upon the occurrence and
continuation of an Event of Default, to take any action and to execute any
instrument that Company may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation:

                  (a) to ask for, demand, collect, sue for, recover, compromise,
receive and give acquittance and receipts for moneys due and to become due under
or in respect of any of the Collateral,

                  (b) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clause (a) above,
and

                  (c) to file any claims or take any action or institute any
proceedings that Company may deem necessary or desirable for the collection of
any of the Collateral or otherwise to enforce the rights of Company with respect
to any of the Collateral.

                  SECTION 8. COMPANY MAY PERFORM. If Pledgor fails to perform
any agreement contained herein, Company may itself perform, or cause performance
of, such agreement, and the reasonable expenses of Company incurred in
connection therewith shall be payable by Pledgor under Section 11(b).

<PAGE>

                  SECTION 9. COMPANY'S DUTIES. The powers conferred on Company
hereunder are solely to protect the interest of Company in the Collateral and
shall not impose any duty upon it to exercise any such powers. Except for the
safe custody of any Collateral in its possession and the accounting for moneys
actually received by it hereunder, Company shall have no duty as to any
Collateral, whether or not Company has or is deemed to have knowledge of such
matters, or as to the taking of any necessary steps to preserve rights against
any parties or any other rights pertaining to any Collateral. Company shall be
deemed to have exercised reasonable care in the custody and preservation of any
Collateral in its possession if such Collateral is accorded treatment
substantially equal to that which it accords its own property.

                  SECTION 10.  REMEDIES.  If any Event of Default shall have
occurred and be continuing:

                  (a) Company may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein or otherwise available
to it, all the rights and remedies of a secured party upon default under the
Uniform Commercial Code in effect in the State of Delaware at such time (the
"UNIFORM COMMERCIAL CODE") (whether or not the Uniform Commercial Code applies
to the affected Collateral) and also may (i) require Pledgor to, and Pledgor
hereby agrees that it will at its expense and upon request of Company,
forthwith, assemble all or part of the Collateral as directed by Company and
make it available to Company at a place to be designated by Company that is
reasonably convenient to both parties and (ii) without notice except as
specified below, sell the Collateral or any part thereof in one or more parcels
at public or private sale, at any of Company's offices or elsewhere, for cash,
on credit or for future delivery, and upon such other terms as Company may deem
commercially reasonable. Pledgor agrees that, to the extent notice of sale shall
be required by law, at least ten days notice to Pledgor of the time and place of
any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. Company shall not be obligated to make any
sale of Collateral regardless of notice of sale having been given. Company may
adjourn any public or private sale from time to time by announcement at the time
and place fixed therefor, and such sale may, without further notice, be made at
the time and place to which it was so adjourned.

                  (b) All cash proceeds received by Company in respect of any
sale of, collection from, or other realization upon all or any part of the
Collateral may, in the discretion of Company, be held by Company as collateral
for, and/or then or at any time thereafter applied (after payment of any amounts
payable to Company pursuant to Section 11) in whole or in part by Company for
its benefit against all or any part of the Obligations and, with respect to
principal and interest, in such order as Company shall elect. Any surplus of
such cash or cash proceeds held by Company and remaining after payment in full
of all the Obligations shall be paid over to Pledgor or to whomsoever may be
lawfully entitled to receive such surplus.

                  (c) Company may exercise any and all rights and remedies of
Pledgor in respect of the Collateral.

                  (d) All payments received by Pledgor in respect of the
Collateral shall be received in trust for the benefit of Company, shall be
segregated from other funds of Pledgor and shall be forthwith paid over to
Company in the same form as so received (with any necessary endorsement).

                  (e) For the purposes of this Agreement, an Event of Default
shall mean (i) default in the due observance or performance of any covenant or
agreement on the part of Pledgor contained herein, which default shall have
continued for a period of twenty-one (21) days after notice thereof from
Company; (ii) any warranty or representation made by Pledgor to Company in this
Agreement shall be incorrect in any material respect; or (iii) an Event of
Default as defined in the Note of even date herewith by the Pledgor in favor of
Company.

<PAGE>

                  SECTION 11. INDEMNITY AND EXPENSES. (a) Pledgor agrees to
indemnify Company from and against any and all claims, losses and liabilities
growing out of or resulting from this Agreement (including, without limitation,
enforcement of, or preservation of rights under, this Agreement), except claims,
losses or liabilities resulting from Company's gross negligence or willful
misconduct as determined by a final judgment of a court of competent
jurisdiction.

                   (b) Pledgor will upon demand pay to Company the amount of any
and all reasonable expenses, including the reasonable fees and expenses of its
counsel and of any experts and agents, that Company may actually incur in
connection with (i) the administration of this Agreement outside of the ordinary
course, (ii) the custody, preservation, use or operation of, or the sale of,
collection from or other realization upon, any of the Collateral, (iii) the
exercise or enforcement of any of the rights of Company hereunder or (iv) the
failure by Pledgor to perform or observe any of the provisions hereof.

                  Without prejudice to the survival of any other agreement of
Pledgor hereunder, the agreements and obligations of Pledgor contained in this
Section 11 shall survive the payment in full and complete performance of the
Obligations hereunder for a period of two (2) years.

                  SECTION 12. AMENDMENTS; WAIVERS; ETC. No amendment or waiver
of any provision of this Agreement, and no consent to any departure by Pledgor
herefrom, shall in any event be effective unless the same shall be in writing
and signed by Company, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given. No
failure on the part of Company to exercise, and no delay in exercising any right
hereunder, shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right.

                  SECTION 13. ADDRESSES FOR NOTICES. All notices and other
communications provided for hereunder shall be in writing (including facsimile,
telegraphic, telex or cable communication) and, mailed, telegraphed, faxed,
telexed, cabled or delivered to Pledgor or to Company, as the case may be, in
each case addressed to it at its address specified below or, as to either party,
at such other address as shall be designated by such party in a written notice
to each other party complying as to delivery with the terms of this Section. All
such notices and other communications shall, when mailed or telecopied be
effective (a) in the case of the mails, the earlier of receipt or five (5) days
after the date when deposited in the mails, and (b) otherwise, when telecopied,
addressed as aforesaid.

                  SECTION 14. CONTINUING SECURITY INTEREST; ASSIGNMENTS. This
Agreement shall create a continuing security interest in the Collateral and
shall (a) remain in full force and effect until the later of the cash payment in
full of principal and interest amounts due under the Note and complete
performance of the Obligations, (b) be binding upon Pledgor, its successors and
assigns and (c) inure, together with the rights and remedies of Company
hereunder, to the benefit of Company, its permitted successors, transferees and
assigns. Without limiting the generality of the foregoing clause (c), Company
may assign or otherwise transfer all or any portion of its rights and
obligations hereunder to any other person or entity, as the case may be, in each
case addressed to it at its address specified person or entity, and such other
person or entity shall thereupon become vested with all the benefits in respect
thereof granted to Company herein or otherwise, in each case, as provided in the
Note.

<PAGE>

                  SECTION 15. RELEASE AND TERMINATION. (a) Upon any sale, lease,
transfer or other disposition of any item of Collateral in accordance with the
terms of the Note and this Agreement, Company will, at Pledgor's expense,
execute and deliver to Pledgor such documents as Pledgor shall reasonably
request to evidence the release of such item of Collateral from the assignment
and security interest granted hereby; PROVIDED, HOWEVER, that (i) at the time of
such request and such release no Event of Default shall have occurred and be
continuing, (ii) Pledgor shall have delivered to Company, at least ten Business
Days prior to the date of the proposed release, a written request for release
describing the item of Collateral and the terms of the sale, lease, transfer or
other disposition in reasonable detail, including the price thereof and any
expenses in connection therewith, together with a form of release for execution
by Company and a certification by Pledgor to the effect that the transaction is
in compliance with the Note and this Agreement and as to such other matters as
Company may request, and (iii) the proceeds of any such sale, lease, transfer or
other disposition required to be applied in accordance with the Note and this
Agreement shall be paid to, or in accordance with the instructions of, Company
at the closing.

                  (b) Upon cash payment in full and complete performance of the
Obligations, the pledge, assignment and security interest granted hereby shall
terminate and all rights to the Collateral shall revert to Pledgor. Upon any
such termination, Company will, at Pledgor's expense, execute and deliver to
Pledgor such documents as Pledgor shall reasonably request to evidence such
termination.

                  SECTION 16. GOVERNING LAW; TERMS. This Agreement shall be
governed by and construed in accordance with the laws of the State of Maryland,
except to the extent that the validity or perfection of the security interest
hereunder, or remedies hereunder, in respect of any particular Collateral are
governed by the laws of a jurisdiction other than such state. Unless otherwise
defined herein or in the Note, terms used in Article 9 of the Uniform Commercial
Code are used herein as therein defined.

                  SECTION 17. SEVERABILITY. If any clause or provision of this
Agreement shall be held invalid or unenforceable, in whole or in part, neither
the remaining provisions of this Agreement nor application of such provision to
any other person or circumstances shall be affected thereby, and the remaining
provisions of this Agreement, or the applicability of such other provision to
other persons or circumstances, as applicable, shall remain in effect and be
enforceable to the maximum extent permitted by applicable law.

                  SECTION 18. WAIVER OF JURY TRIAL. EACH OF PLEDGOR AND COMPANY
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM (WHETHER BASED UPON CONTACT, TORT OR OTHERWISE) ARISING OUT OF
OR RELATING TO THE NOTE OR THIS AGREEMENT, THE ACTION OF ANY AGENT OR ANY LENDER
IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

<PAGE>

                  IN WITNESS WHEREOF, Pledgor has caused this Agreement to be
duly executed and delivered as of the date first above written.

                                    PLEDGOR

                                    /s/ RICHARD J. MASSEY
                                    ------------------------------
                                    Name:  Richard J. Massey

                                    ADDRESS:
                                    16020 Industrial Drive
                                    Gaithersburg, MD 20877

                                    COMPANY

                                    By:  /s/ George Migousky
                                         ------------------------
                                         Name: George Migousky
                                         Title: Chief Financial Officer

                                    ADDRESS:
                                    16020 Industrial Drive
                                    Gaithersburg, MD 20877

                                   SCHEDULE I

                                THE PLEDGED STOCK

<TABLE>
<CAPTION>
                              NUMBER OF                             CERTIFICATE
                        SHARES OF COMPANY STOCK                        NUMBER
                        -----------------------                     -----------
<S>                                                                 <C>

</TABLE>U.S. $60,000,000.00

                                 LOAN AGREEMENT

                            Dated as of May 17, 2001

                                     between

                       Alliance Semiconductor Corporation
                                   as Borrower

                                       and

                                 CITIBANK, N.A.,
                                    as Lender

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

<PAGE>

           CREDIT AGREEMENT dated as of May 17, 2001 among Alliance
Semiconductor Corporation a Delaware corporation (the "Borrower"), and CITIBANK,
N.A. ("Citibank" or the "Lender").

                              R E C I T A L S

           WHEREAS, Lender has agreed to extend certain credit facilities to the
Borrower the proceeds of which will be used for operational purposes and;

           WHEREAS, Borrower desires to secure all of the Obligations hereunder
by granting to Lender, a first priority Lien on the Pledged Stock (as defined
below) and any additional equity pledged under the Pledge Agreement from time to
time:

           NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, Borrower and Lender agree as follows:

ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

1.1 Certain Defined Terms. As used in this Agreement, the following terms shall
have the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined):

           "Advance" means the advance by the Lender to the Borrower pursuant to
Section 2.1.

           "Affiliate" means, as to any Entity, any other Entity that, directly
or indirectly, controls, is controlled by or is under common control with such
Entity.

           "Applicable Lending Office" means the office of the Lender specified
on the signature page hereof, or such other office of the Lender as the Lender
may from time to time specify to the Borrower.

            "Base Rate" means, for any period, a fluctuating interest rate per
annum in effect from time to time which shall at all times be equal to the
higher of:

                (a) the rate of interest announced publicly by Citibank in New
      York, New York, from time to time, as Citibank's Base Rate, and

                (b)  0.50% per annum above the Federal Funds Rate.

           "Business Day" means (a) a day on which banks are not required or
authorized to close in New York, New York and (b) unless a Base Rate is in
effect, on which dealings in deposits are carried on in the London interbank
market.

           "Capital Stock" means, with respect to any Entity, any and all
shares, interests, participations, rights in, or other equivalents (however
designated and whether voting and/or non-voting) of, such Entity's capital stock
or other ownership interests (including, without limitation, partnership
interests (whether general or limited) or limited liability company membership
interests), whether outstanding on, or issued after the date hereof, and any and
all rights (other than any evidence of indebtedness), warrants or options
exchangeable for or convertible into such Capital Stock or other ownership
interests, as the case may be.

           "Central Depository" means the Taiwan Securities Central
      Depository Co., Ltd.

            "Code" means the Internal Revenue Code of 1986, as amended from time
to time.

            "Commitment" has the meaning specified in Section 2.1.

           "Debt" of any Entity means (a) indebtedness of such Entity for
borrowed money, (b) obligations of such Entity evidenced by bonds, debentures,
notes or other similar instruments.

           "Default" means an Event of Default or an event that, with notice or
lapse of time or both, would become an Event of Default.

            "Dollars" and "$" means lawful money of the United States of
America.

           "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder.

           "ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code, or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 4143 of the Code.

           "Eurocurrency Liabilities" has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as in
effect from time to time.

           "Events of Default" has the meaning specified in Section 6.1.

           "Excluded Taxes" means, with respect to the Lender or any other
recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) income or franchise taxes imposed on (or measured by)
its net income by the United States of America, or by the jurisdiction under the
laws of which such recipient is organized or in which its principal office or
its Applicable Lending Office is located and (b) any branch profits taxes
imposed by the United States of America or any similar tax imposed by any other
jurisdiction in which the Borrower is located.

           "Federal Funds Rate" means a fluctuating interest rate per annum
equal for each day to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published for such day (or, if such day is not a
Business Day, for the next preceding Business Day) by the Federal Reserve Bank
of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations for such day on such transactions
received by the Lender from three Federal funds brokers of recognized standing
selected by it.

           "GAAP" means generally accepted accounting principles in the United
States.

           "Indemnified Taxes" means Taxes other than Excluded Taxes.
            -----------------

            "Interest Period" means the period beginning on the date the Advance
is made or on the last day of the immediately preceding Interest Period, and
ending on the last day of the period selected by the Borrower pursuant to the
provisions below. The duration of each Interest Period shall be one month unless
the parties otherwise agree; provided, however, that (i) each Interest Period
that begins on the last Business Day of a calendar month (or on any day for
which there is no numerically corresponding day in the appropriate subsequent
calendar month) shall end on the last Business Day of the appropriate subsequent
calendar month, (ii) whenever the last day of any Interest Period would
otherwise occur on a day other than a Business Day, the last day of such
Interest Period shall be extended to occur on the next succeeding Business Day,
except that if such extension would cause the last day of such Interest Period
to occur in the next following calendar month, the last day of such Interest
Period shall occur on the next preceding Business Day and (iii) any Interest
Period that would otherwise extend beyond the Maturity Date shall end on the
Maturity Date.

           "Investment" means, with respect to any Entity, any advance, loan,
account receivable (other than an account receivable arising in the ordinary
course of business), or other extension of credit (including, without
limitation, by means of any Guarantee) or any capital contribution to (by means
of transfers of property to others, payments for property or services for the
account or use of others, or otherwise), or any purchase or ownership of any
stocks, bonds, notes, debentures or other securities of, any other Entity.

            "Lender"  means  Citibank,  N.A. and any other Entity that shall
             ------
become a party pursuant to Section 7.5.

           "LIBO Rate" means for any Interest Period:

                (a) the offered rate for deposits in Dollars with a maturity
      comparable to such Interest Period appearing on Page 3750 of the Telerate
      Service (or on any successor or substitute page of such Service, or any
      successor to such Service, providing rate quotations comparable to those
      currently provided on such page of such Service, as determined by the
      Lender from time to time, for purposes of providing quotations of interest
      rates applicable to Dollar deposits in the London interbank market) as of
      approximately 11:00 A.M. (London time) on the date two Business Days prior
      to the commencement of such Interest Period;

                (b) in the event that the rate referred to in clause (a) is
      unavailable at such time for any reason, an interest rate per annum equal
      to the rate per annum at which deposits in Dollars are offered by the
      principal office of the Lender in London, England to prime banks in the
      London interbank market at approximately 11:00 a.m. (London time) on the
      date two Business Days before the first day of such Interest Period in the
      amount of the Advance if the Advance were to be outstanding for such
      Interest Period.

           "LIBO Rate Reserve Percentage" for any Interest Period means the
effective rate (expressed as a percentage) at which reserve requirements
(including, without limitation, emergency, supplemental and other marginal
reserve requirements) are imposed on the Lender during such Interest Period
under regulations issued from time to time by the Board of Governors of the
Federal Reserve System (or any successor) with respect to liabilities or assets
consisting of or including Eurocurrency Liabilities having a term equal to such
Interest Period.

           "Lien" means any mortgage, charge, pledge, lien (statutory or other),
security interest, hypothecation, assignment for security, claim, or preference
or priority or other encumbrance upon or with respect to any property of any
kind. A Entity shall be deemed to own subject to a Lien any property which such
Entity has acquired or holds subject to the interest of a vendor or lessor under
any conditional sale agreement, capital lease or other title retention
agreement.

           "Loan  Documents"  means this Agreement,  the Note and the Pledge
            ---------------
Agreement.

           "Material Adverse Effect" means a material adverse effect on (a) the
business, assets, operations, prospects or condition, financial or otherwise, of
the Borrower and its Subsidiaries taken as a whole or (b) the ability of the
Borrower to perform its obligations under this Agreement or any of the other
Loan Documents.

           "Maturity Date" unless such date is accelerated pursuant to the terms
hereof, shall mean November 19, 2001, the date on which payment by the Borrower
of all Obligations hereunder is due and owing to the Lender.

           "Multiemployer Plan" means a multiemployer plan defined as such in
Section 4001(a)(3) of ERISA to which contributions have been made by the
Borrower or any ERISA Affiliate and that is covered by Title IV of ERISA.

           "Note" has the meaning specified in Section 2.5(b).

            "Obligations" shall mean all amounts owing to the Lender pursuant to
the terms of this Agreement or any other Loan Document

            "Other Taxes" means any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement or the Pledge
Agreement.

            "PBGC" means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.

           "Entity" means an individual, partnership, corporation (including a
business trust), limited liability company, joint stock company, trust,
unincorporated association, joint venture or other entity, or a government or
any political subdivision or agency thereof.

           "Plan" means an employee benefit or other plan established or
maintained by the Borrower or any ERISA Affiliate and that is covered by Title
IV of ERISA, other than a Multiemployer Plan.

           "Pledge Agreement" means that certain Pledge Agreement dated as of
May 17, 2001 substantially in the form of Exhibit B hereto.

           "Pledged Stock" means shares of the common stock of United
Microelectronics Corp. that have been delivered to Lender or, to the Central
Depository, pursuant to the terms of the Pledge Agreement.

              "Shares" means shares of the common stock of United
Microelectronics Corp.

           "Subsidiary" means, with respect to any Entity, any corporation,
partnership, limited liability company or other entity of which at least a
majority of the shares of stock or other ownership interests having ordinary
voting power (without regard to the occurrence of any contingency) to elect a
majority of the board of directors or other managers of such entity is at the
time directly or indirectly owned or controlled by such Entity or one or more
Subsidiaries of such Entity or by such Entity and one or more Subsidiaries of
such Entity.

           "Taxes" means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any governmental
authority.

           .

ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCE

           .

2.1 The Commitment. The Lender agrees, on the terms and conditions hereinafter
set forth, to make Advances to the Borrower in Dollars from time to time from
the date hereof through June 28, 2001 in the aggregate principal amount of
$60,000,000.00 (the "Commitment"). The Commitment shall be reduced to
$18,000,000.00 if the Lender notifies the Borrower that the Lender has a
reasonable belief that the proceeds from a sale or an anticipated sale of the
Pledged Stock may not readily and without undue cost and expense, be repatriated
to the USA.

2.2 Advance. The Lender will make the proceeds of any Advance available to the
Borrower by crediting the amount thereof, in immediately available funds, by no
later than 12:00 noon (New York City time) on the date following a request for
an Advance, to an account of the Borrower (Acct. No. 4296-905722, ABA No.
12000248) maintained with Wells Fargo Bank at its offices at 121 Park Center
Plaza, San Jose, CA, 95113, Reference:
[-----------]).

2.3 Interest Elections. The initial Interest Period shall expire thirty days
from the date hereof. Borrower may elect subsequent Interest Periods as provided
in this Section 2.3. To make an election pursuant to this Section 2.03, the
Borrower shall notify the Lender of such election by telephone not later than
11:00 A.M. (New York City time) on the third Business Day prior to the effective
date of such election. Each such telephonic election shall be irrevocable and
shall be confirmed promptly by hand delivery or telecopy to the Lender of a
written interest election request in a form approved by the Lender and signed by
the Borrower. Each telephonic and written interest election request shall
specify the following information:

(1) the effective date of the election made pursuant to such interest election
request, which shall be a Business Day; and

(2) the Interest Period to be applicable after giving effect to such election,
which shall be a period contemplated by the definition of the term "Interest
Period."

2.4 Termination of the Commitment. The Commitment shall automatically terminate
at 5:00 P.M. on the date hereof unless prior to such time the conditions
precedent set forth in Section 3.1 shall have been satisfied or waived and an
Advance shall have been made. The Commitment once terminated under this Section
2.4 may not be reinstated.

2.5   Repayment of Advance; Note.
      --------------------------

(a) The Borrower hereby unconditionally promises to pay to the Lender the
outstanding principal amount of the Advance on the Maturity Date.

(b) The Advances shall be evidenced by a single promissory note of the Borrower
(the "Note") in substantially the form of Exhibit A hereto, dated the date
hereof, payable to the Lender in a principal amount equal to the Commitment and
otherwise duly completed.

2.6   Prepayment of Advance.
      ---------------------

(a)   Optional  Prepayments.  The Borrower  shall have the right at any time
      ---------------------
and from time to time to prepay  any  Advance  in whole or in part,  subject
to the requirements of this Section 2.6.

(b) Terms Applicable to All Prepayments. The Borrower shall notify the Lender by
telephone (confirmed by telecopy) of any optional prepayment hereunder not later
than 11:00 A.M. (New York City time) three Business Days before the date of
prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of the Advance or portion thereof to be
prepaid. Prepayments shall be accompanied by accrued interest to the extent
required by Section 2.7 and shall be made in the manner specified in Section
2.5(b).

2.7   Interest.
      --------

(a) Subject to Sections 2.7(b) and 2.8, the Borrower agrees to pay interest on
the Advance during each Interest Period therefor at a rate per annum equal to
the LIBO Rate for such Interest Period plus 1.00% per annum.

(b) Notwithstanding the foregoing, if any principal of or interest on the
Advance or any fee or other amount whatsoever payable by the Borrower hereunder
is not paid when due, whether at stated maturity, upon acceleration or
otherwise, such overdue amount shall bear interest upon demand, after as well as
before judgment, at a rate per annum equal to (i) in the case of overdue
principal of the Advance, 2.00% per annum plus the rate otherwise applicable to
the Advance as provided above or (ii) in the case of any other amount, 1.00% per
annum above the Base Rate. Notwithstanding any contrary provision hereof, if an
Event of Default has occurred and is continuing and the Lender so notifies the
Borrower, then, so long as an Event of Default is continuing, the Advance shall
bear interest at the Base Rate at the end of the then current Interest Period.

(c) Accrued interest on the Advance shall be payable in arrears upon the
Maturity Date; provided, that (i) interest accrued pursuant to paragraph (b) of
this Section 2.7 shall be payable on demand and (ii) in the event of any
repayment or prepayment of the Advance, accrued interest on the principal amount
repaid or prepaid shall be payable on the date of such repayment or prepayment.

(d) The Borrower agrees to pay to the Lender, so long as the Lender shall be
required under regulations of the Board of Governors of the Federal Reserve
System to maintain reserves with respect to liabilities or assets consisting of
or including Eurocurrency Liabilities (or the equivalent), additional interest
on the unpaid principal amount of the Advance, at an interest rate per annum
equal at all times to the remainder obtained by subtracting (i) the LIBO Rate
for the then current Interest Period for the Advance from (ii) the rate obtained
by dividing such LIBO Rate by a percentage equal to 100.00% minus the LIBO Rate
Reserve Percentage for such Interest Period, payable on each date on which
interest is payable on the Advance. A certificate of the Lender setting forth
the amount to which the Lender is then entitled under this Section 2.7(d) shall
be conclusive and binding on the Borrower in the absence of manifest error.

(e) All computations of interest based on the Base Rate shall be made on the
basis of a year of 365 or 366 days, as the case may be, and all computations of
interest based on the LIBO Rate and computations of interest pursuant to Section
2.7(d) shall be made on the basis of a year of 360 days, in each case for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest is payable.

           (f) Alternate Rate of Interest. If prior to the commencement of any
Interest Period the Lender determines (which determination shall be conclusive
absent manifest error) that adequate and reasonable means do not exist for
ascertaining the LIBO Rate for such Interest Period then the Lender shall give
notice thereof to the Borrower by telephone or telecopy as promptly as
practicable thereafter and, until the Lender notifies the Borrower that the
circumstances giving rise to such notice no longer exist the Advance shall bear
interest at the Base Rate plus 1.00% per annum.

2.8   Increased Costs.
      ---------------

(a) If, due to either (i) the introduction of or any change (other than any
change by way of imposition or increase of reserve requirements included in the
LIBO Rate Reserve Percentage) or in the interpretation of (to the extent any
such introduction or change occurs after the date hereof) any law or regulation
or (ii) the compliance with any guideline or request of any central bank or
other governmental authority adopted or made after the date hereof (whether or
not having the force of law), there shall be any increase in the cost to the
Lender of agreeing to make or making, funding or maintaining the Advance, the
Borrower shall from time to time, within 10 days after delivery by the Lender to
the Borrower of a certificate as to the amount of such increased cost, pay to
the Lender the amount of the increased costs set forth in such certificate
(which certificate shall be conclusive and binding on the Borrower in the
absence of manifest error).

(b) If the Lender determines that compliance with any law or regulation enacted
or introduced after the date hereof or any guideline or request of any central
bank or other governmental authority adopted or made after the date hereof
(whether or not having the force of law) affects or would affect the amount of
capital required or expected to be maintained by the Lender or any corporation
controlling the Lender and that the amount of such capital is increased by or
based upon the existence of the Lender's Commitment and other commitments of
this type, or the Advance, then, the Borrower shall pay to the Lender, within 10
days after delivery by the Lender to the Borrower of a certificate as to the
amount required to compensate the Lender therefor, the amount required to
compensate the Lender therefor (a certificate of the Lender as to such amount to
be conclusive and binding on the Borrower in the absence of manifest error).

2.9 Break Funding Payments. In the event of (a) the payment of any principal of
the Advance other than on the last day of an Interest Period (including as a
result of an Event of Default), (b) the conversion of the Advance other than on
the last day of an Interest Period therefor or (c) the failure to borrow,
convert, continue or prepay the Advance on the date specified in any notice
delivered pursuant hereto, then, in any such event, the Borrower shall
compensate the Lender for the loss, cost and expense attributable to such event,
which shall be deemed to include an amount determined by the Lender to be equal
to the excess, if any, of (i) the LIBO Rate for the balance of such Interest
Period (or for the Interest Period that would have commenced on such borrowing,
conversion, continuation or prepayment), over (ii) the amount of interest that
the Lender would earn on such principal amount for the balance of such Interest
Period (or for such Interest Period) if the Lender were to invest such principal
amount for such period at the interest rate that would be bid by the Lender (or
an Affiliate of the Lender) for Dollar deposits from other banks in the London
interbank market at the commencement of such period. A certificate of the Lender
setting forth any amount or amounts that the Lender is entitled to receive
pursuant to this Section 2.10 shall be delivered to the Borrower and shall be
conclusive absent manifest error. The Borrower shall pay the Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

2.10  Taxes.
      -----

(a) Any and all payments by or on account of any obligation of the Borrower
hereunder shall be made free and clear of and without deduction for any
Indemnified Taxes or Other Taxes; provided, that if the Borrower shall be
required to deduct any Indemnified Taxes or Other Taxes from such payments, then
(i) the sum payable shall be increased as necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 2.11) the Lender receives an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrower shall make
such deductions and (iii) the Borrower shall pay the full amount deducted to the
relevant governmental authority in accordance with applicable law.

(b) In addition, the Borrower shall pay any Other Taxes to the relevant
governmental authority in accordance with applicable law.

           (c) The Borrower shall indemnify the Lender, within 10 days after
written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section 2.11) paid by the Lender and
any penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant governmental authority.
A certificate as to the amount of such payment or liability delivered to the
Borrower by the Lender shall be conclusive absent manifest error.

           (d) As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by the Borrower to a governmental authority, the Borrower shall
deliver to the Lender the original or a certified copy of a receipt issued by
such governmental authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably satisfactory
to the Lender.

2.11  Payments Generally.
      ------------------

(a) The Borrower shall make each payment required to be made by it hereunder
(whether of principal, interest or fees, or under Section 2.9, 2.10 or 2.11, or
otherwise) prior to 12:00 noon (New York City time) on the date when due, in
Dollars and immediately available funds, without set-off or counterclaim. Any
amounts received after such time on any date may, in the discretion of the
Lender, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to the
Lender at its offices at 399 Park Avenue, New York, New York 10043. If any
payment hereunder shall be due on a day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day and, in the case
of any payment accruing interest, interest thereon shall be payable for the
period of such extension.

(b) If at any time insufficient funds are received by and available to the
Lender to pay fully all amounts of principal, interest and fees then due
hereunder, such funds shall be applied first, to pay interest then due
hereunder, then to pay fees and other amounts hereunder, then to pay principal
due hereunder.

(c) The Borrower agrees that at any time after the occurrence and during the
continuance of an Event of Default, in addition to (and without limitation of)
any right of set-off, banker's lien, or counterclaim the Lender may otherwise
have, the Lender shall be entitled, at its option, to offset balances held by it
for the account of the Borrower at any of its offices, in Dollars or in any
other currency, against any principal of or interest on the Advance to the
Borrower hereunder, or any other obligation of the Borrower hereunder, which is
not paid when due (regardless of whether such balances are then due to the
Borrower), in which case it shall promptly notify the Borrower; provided, that
failure to give such notice shall not affect the validity thereof.

ARTICLE III

                              CONDITIONS OF LENDING

3.1 Condition Precedent to an Advance. The obligation of the Lender to make an
Advance is subject to the condition precedent that the Lender shall have
received, on or before the date hereof, the following documents, each dated the
date hereof and in form and substance satisfactory to the Lender:

(a) A Note, duly executed by the Borrower, payable to the order of the Lender in
the principal amount of the Commitment.

(b) Certified copies of the certificate of incorporation or resolution of the
Board of Directors of the Borrower (or equivalent documents) authorizing the
Borrower to borrow money and pledge assets as collateral.

(c) A certificate of the Borrower certifying the names and true signatures of
the officers of the Borrower authorized to sign this Agreement, the Pledge
Agreement, the Note and any other documents to be delivered hereunder.

(d) A certificate of the Borrower as to the effect set forth in clauses (i) and
(ii) of the last paragraph of this Section 3.1.

(e) The Pledge Agreement, duly executed and delivered by each party and Shares
having a market value (as determined by the Lender) at least equal to 400% of
the Commitment have been delivered Pledgee, or to the Central Depository
pursuant to the Pledge Agreement.

(f) Evidence that the Borrower shall have paid all expenses relating to the
execution, delivery and negotiation of the Loan Documents and related matters
for which invoices have been presented, on or before such date (including,
without limitation, the fees and expenses of counsel to the Lender), to the
extent that statements for such fees and expenses have been delivered to the
Borrower.

(g)   A duly  completed  Form FRU-1,  satisfactory  in form and substance to
the Lender.

           The obligation of the Lender to make an Advance shall be subject to
the further conditions precedent that on the date hereof and on the date of any
Advance: (i) the representations and warranties set forth in Article IV are true
and correct, before and after giving effect to the Advance and to the
application of the proceeds thereof and (ii) no Default or Event of Default
hereunder and no breach of the Pledge Agreement would result from such Advance
or from the application of the proceeds thereof.

ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

           As of the date hereof and as of any date on which an Advance is
requested, the Borrower represents and warrants to the Lender that:

4.1 Organization. The Borrower is duly organized, validly existing and in good
standing under the laws of the State of Delaware.

4.2 Authorization; Enforceability. The execution, delivery and performance of
each of the Loan Documents by the Borrower are within the Borrower's corporate
powers and have been duly authorized by all necessary corporate action. Each of
the Loan Documents (other than the Note) has been duly executed and delivered by
the Borrower and constitutes, and the Note when duly executed and delivered for
value will constitute, a legal, valid and binding obligation of the Borrower,
enforceable in accordance with its terms, except as such enforceability may be
limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar
laws of general applicability affecting the enforcement of creditors' rights and
(b) the application of general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

4.3 Government Approvals; No Conflicts. The execution, delivery and performance
of each of the Loan Documents by the Borrower (a) do not require any consent or
approval of, registration or filing with, or any other action by, any
governmental authority, (b) will not violate any applicable law or regulation or
the articles of incorporation, bylaws or other organizational documents of the
Borrower and (c) will not violate or result in a default under any indenture,
agreement or other instrument binding upon the Borrower.

4.4 Financial Condition; No Material Adverse Change. Borrower has heretofore
furnished to the Lender the consolidated balance sheet and statements of income,
stockholders' equity and cash flows of Borrower and its Subsidiaries as of
December 31, 2000. Such financial statements present fairly, in all material
respects, the financial position and results of operations and cash flows of
Borrower as of such date and for such period in accordance with GAAP. Since
December 31 2000 no event or circumstance has occurred that has had a material
adverse effect on (a) the business, assets, operations, prospects or condition,
financial or otherwise, of Borrower and its Subsidiaries taken as a whole.

4.5 Litigation. There are no actions, suits or proceedings by or before any
arbitrator or governmental authority now pending against or, to the knowledge of
the Borrower, threatened against or affecting the Borrower (i) that, if
adversely determined, could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect or (ii) that involve this
Agreement or the transactions contemplated thereby.

4.6 Compliance with Laws and Agreements. The Borrower is in compliance with all
applicable laws, regulations and orders of any governmental authority applicable
to it or its property and all indentures, agreements and other instruments
binding upon it or its property, except where the failure to do so, individually
or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.

4.7 Investment and Holding Company Status. The Borrower believes it is not an
"investment company" as defined in, or subject to regulation under, the
Investment Company Act of 1940 and has applied to the United States Securities
and Exchange Commission for an exemption under the Investment Company Act of
1940. The Borrower is not a "holding company" as defined in, or subject to
regulation under, the Public Utility Holding Company Act of 1935.

4.8 Margin Stock. No portion of the proceeds of any borrowing under this
Agreement shall be used by the Borrower to purchase or carry any margin stock in
any manner that might cause the borrowing or the application of such proceeds to
violate Regulation U, Regulation T or Regulation X of the Board of Governors of
the Federal Reserve System or any other regulation of the Board or to violate
the Securities Exchange Act of 1934, in each case as in effect on the date or
dates of such borrowing and such use of proceeds.

ARTICLE V

                            COVENANTS OF THE BORROWER

5.1 Covenants. So long as any principal of or interest on the Advance or any
other amount payable hereunder or under the Note remains outstanding or the
Commitment remains in effect, the Borrower covenants and agrees that:

(a) The Borrower will (i) preserve and maintain its corporate existence and (ii)
comply with all applicable laws, statutes, rules, regulations and orders, except
for any non-compliance which could not (either individually or in the aggregate)
reasonably be expected to result in Material Adverse Effect.

(b) The Borrower will keep adequate records and books of account, in which
complete entries will be made in accordance with GAAP, and permit
representatives of the Lender, during normal business hours, with the consent of
the Borrower (which consent shall not be unreasonably withheld), to examine,
copy and make extracts from its books and records, to inspect any of its
property, and to discuss its business and affairs with its officers, all to the
extent reasonably requested by the Lender.

(c) The Borrower will maintain insurance with financially sound and reputable
insurance companies, and with respect to property and risks of a character
usually maintained by corporations engaged in the same or similar business
similarly situated, against loss, damage and liability of the kinds and in the
amounts customarily maintained by such corporations.

(d)   The Borrower will furnish to the Lender:

(1) as soon as possible and in any event within five Business Days after the
occurrence of any Default, a statement of the chief financial officer of the
Borrower setting forth details of such Default and the action which the Borrower
has taken and proposes to take with respect thereto;

(2) promptly after the sending or filing thereof, copies of all reports and
registration statements which the Borrower files with the Securities and
Exchange Commission or any national securities exchange; and

(3) such other information respecting the condition or operations, financial or
otherwise, of the Borrower as the Lender may from time to time reasonably
request.

(e) The Borrower will use the proceeds for its general operating requirements.
and to pay fees and expenses relating to the financing hereunder; provided, that
the Lender shall have no responsibility as to the use of any of such proceeds.

(f) The Borrower will not (i) sell, lease, assign, convey, transfer or other
dispose of, or (ii) create, incur, assume or suffer to exist any Lien or
encumbrance upon any of its property pledged to the Borrower under the Pledge
Agreement. except for Liens created pursuant to the Pledge Agreement.

(g)   The  Borrower  will not declare or pay any  extraordinary  dividend in
respect of its common stock.

           5.2 Maintenance of Pledge. Borrower hereby agrees that Lender will
not be obligated to Advance any funds hereunder unless prior to any such
Advance, Pledgor has delivered to Lender, or deposited with the Central
Depository for the Benefit of the Lender, pursuant to the Pledge Agreement a
number of Shares such that the market value of the Pledged Stock (as reasonably
determined by the Lender) is no less than 400% of the aggregate of the principle
and interest then outstanding. Thereafter Borrower agrees that whenever market
value of the Pledged Stock (as reasonably determined by the Lender) is less than
300% of the aggregate of the principle and interest then outstanding Borrower
shall pledge and deliver to Lender, or the Central Depository, pursuant to the
Pledge Agreement for the benefit of the Lender such additional Shares such that
subsequent to such delivery, the market value of the Pledged Stock (as
determined by the Lender) is no less than 400% of the aggregate of the principle
and interest then outstanding. Borrower it shall use its best efforts to provide
and maintain for Lender and its Affiliates a perfected first priority lien in
all of the Pledge Stock.

ARTICLE VI

                                EVENTS OF DEFAULT

6.1   Events  of  Default.  If any  of the  following  events  ("Events  of
      -------------------                                        -----------
Default") shall occur and be continuing:

(a) The Borrower shall fail to pay any principal of the Advance when the same
becomes due and payable; or the Borrower shall fail to pay any interest on the
Advance or any fee or other amount payable hereunder or under the Note when due
and such failure remains unremedied for three days; or

(b) Any representation or warranty made by the Borrower herein or in any
certificate or other document delivered in connection with this Agreement shall
prove to have been incorrect when made or deemed made; or

(c) The Borrower shall fail to materially perform or observe any term, covenant,
or agreement contained in this Agreement or the Pledge Agreement;

(d) The Borrower shall fail to pay any principal of or premium or interest on
any other Debt in an aggregate principal amount exceeding $ 5,000,000.00 of the
Borrower when the same becomes due and payable, and such failure shall continue
after the applicable grace period, if any, specified in the agreement or
instrument relating to such Debt; or any other event shall occur or condition
shall exist under any agreement or instrument relating to any such Debt and
shall continue after the applicable grace period, if any, specified in such
agreement or instrument, if the effect of such event or condition is to
accelerate, or to permit the acceleration of, the maturity of such Debt; or any
such Debt shall be declared to be due and payable, or required to be prepaid
(other than by a regularly scheduled required prepayment), redeemed, purchased
or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall
be required to be made, in each case prior to the stated maturity thereof; or

(e) Any judgment or order for the payment of money in excess of $5,000,000.00
shall be rendered against the Borrower, and either (i) enforcement proceedings
shall have been commenced by any creditor upon such judgment or order and such
proceedings shall not have been stayed or (ii) there shall be any period of 30
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect; or

(f) Borrower has merged with another Entity and the creditworthiness of the
resulting Entity is materially weaker than the creditworthiness of the Borrower
as of the date hereof.

(g)   the Borrower shall breach the Pledge Agreement;

(h) The Pledge Agreement shall cease to be in full force and effect or shall be
declared null and void or the Lender shall cease to have a valid and perfected
First Priority Lien in any Collateral purporting to be covered thereby or the
Borrower shall contest the validity of the Pledge Agreement or deny that it has
any liability thereunder;

then, and in any such event, the Lender may, by notice to the Borrower, (i)
declare the obligation of the Lender to make Advance to be terminated, whereupon
the same shall forthwith terminate, and/or (ii) declare the Advance and the
Note, all interest thereon and all other Obligations to be forthwith due and
payable, whereupon the Advance and the Note, all such interest and all such
amounts shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrower; provided, however, that in the event of an entry of an
order for relief with respect to the Borrower under the Federal Bankruptcy Code,
(A) the obligation of the Lender to make the Advance shall automatically be
terminated and (B) the Advance and the Note, all such interest and all such
Obligations shall automatically become and be due and payable, without
presentment, demand, protest or any notice of any kind, all of which are hereby
expressly waived by the Borrower.

           6.2 Exchange Controls etc. The Maturity Date shall be accelerated by
notice to Borrower from Lender if in the reasonable judgment of Lender
restrictions on the ownership or disposition of Shares, or restrictions on the
transfer or exchange of currency have been imposed such that Lender could not
readily sell the Pledged Shares or transfer the proceeds of such sale to the
United States of America.

ARTICLE VII

                                  MISCELLANEOUS

7.1 Amendments, Etc. No amendment or waiver of any provision of this Agreement,
the Pledge Agreement, or the Note, nor consent to any departure by the Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the parties hereto, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given. This Agreement, the Pledge Agreement, and the Note and the documents
referred to herein and therein constitute the entire agreement of the parties
with respect to the subject matter hereof and thereof.

7.2 Notices, Etc. All notices and other communications provided for hereunder
shall be in writing (including telecopier, telegraphic, telex or cable
communication) and mailed, telecopied, telegraphed, telexed, cabled or
delivered, to the respective addresses set forth on the signature pages hereof
or at such other address as shall be designated by any party in a written notice
to the other party. All such notices and communications shall, when mailed,
telecopied, telegraphed, telexed or cabled, be effective when deposited in the
mails, telecopied, delivered to the telegraph company, confirmed by telex
answerback or delivered to the cable company, respectively, except that notices
and communications to the Lender pursuant to Article II or VII shall not be
effective until received by the Lender.

7.3 No Waiver; Remedies. No failure on the part of either party to exercise, and
no delay in exercising, any right hereunder, under the Pledge Agreement, or
under the Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided in equity or at law.

7.4   Costs, Expenses and Indemnification.
      -----------------------------------

(a) The Borrower agrees to pay and reimburse on demand all reasonable costs and
expenses incurred by the Lender in connection with the preparation, negotiation,
execution and delivery, administration, modification, amendment or enforcement
of this Agreement, the Note and the other documents to be delivered hereunder,
including, without limitation, the reasonable fees and out-of-pocket expenses of
counsel for the Lender with respect thereto and with respect to advising the
Lender as to its rights and responsibilities under or in connection with this
Agreement.

(b) The Borrower hereby indemnifies the Lender and each of its Affiliates and
their respective officers, directors, employees, agents, advisors and
representatives (each, an "Indemnified Party") from and against any and all
claims, damages, losses, liabilities and expenses (including, without
limitation, fees and disbursements of counsel), joint or several, that may be
incurred by or asserted or awarded against any Indemnified Party, in each case
arising out of or in connection with or relating to any investigation,
litigation or proceeding or the preparation of any defense with respect thereto
arising out of or in connection with or relating to this Agreement or the
transactions contemplated hereby or thereby or any use made or proposed to be
made with the proceeds of the Advance, whether or not such investigation,
litigation or proceeding is brought by the Borrower, any of its stockholders or
creditors, an Indemnified Party or any other Entity or an Indemnified Party is
otherwise a party thereto, and whether or not any of the conditions precedent
set forth in Article III are satisfied or the other transactions contemplated by
this Agreement are consummated, except to the extent such claim, damage, loss,
liability or expense is found in a final, non-appealable judgment by a court of
competent jurisdiction to have resulted from such Indemnified Party's gross
negligence or willful misconduct.

7.5   Assignments and Participations.
      ------------------------------

(a) The Lender may, without the consent of the Borrower, assign to another
Person all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of the Commitment, the Advance
and the Note); provided, however, that no such consent by the Borrower shall be
required in the case of any assignment to a Subsidiary or Affiliate of the
Lender.

(b) The Lender may sell participations to one or more banks or other entities in
or to all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitment, the Advance
and the Note); provided, however, that the Lender's obligations under this
Agreement (including, without limitation, its Commitment hereunder) shall remain
unchanged.

(c) Upon receiving Borrower's written consent, which shall not be unreasonably
withheld, the Lender may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 7.5, disclose to
the assignee or participant or proposed assignee or participant, any information
relating to the Borrower or any Subsidiaries or Affiliates thereof furnished to
the Lender by or on behalf of the Borrower.

(d) Notwithstanding any other provision set forth in this Agreement, the Lender
may at any time create a security interest in all or any portion of its rights
under this Agreement (including, without limitation, the Advance and the Note)
in favor of any Federal Reserve Bank in accordance with Regulation A of the
Board of Governors of the Federal Reserve System.

(e) All amounts payable by the Borrower to the Lender under Sections 2.7(d),
2.9, 2.10 and 7.4(b) shall be determined as if the Lender had not sold or agreed
to sell any participations in the Advance or the Note or its Commitment and as
if the Lender were funding each of the Advance and Commitment in the same way
that it is funding the portion of the Advance and Commitment in which no
participations have been sold.

7.6 Governing Law; Submission to Jurisdiction. This Agreement and the Note shall
be governed by, and construed in accordance with, the law of the State of New
York (without regard to its conflicts of law provisions). The Borrower hereby
submits to the nonexclusive jurisdiction of the United States District Court for
the Southern District of New York and of any New York state court sitting in New
York County for the purposes of all legal proceedings arising out of or relating
to this Agreement or the transactions contemplated hereby. The Borrower
irrevocably waives, to the fullest extent permitted by applicable law, any
objection that it may now or hereafter have to the laying of the venue of any
such proceeding brought in such a court and any claim that any such proceeding
brought in such a court has been brought in an inconvenient forum.

7.7 Severability. In case any provision in this Agreement, the Pledge Agreement
or in the Note shall be held to be invalid, illegal or unenforceable, such
provision shall be severable from the rest of this Agreement or the Note, as the
case may be, and the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

7.8 Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

7.9 Survival. The obligations of the Borrower under Sections 2.7(d), 2.9, 2.10,
2.11 and 7.4 shall survive the repayment of the Advance and the termination of
the Commitment. Each representation and warranty made or deemed to be made
herein or pursuant hereto shall survive the making of such representation and
warranty, and the Lender shall not be deemed to have waived, by reason of making
any Advance, any Default or Event of Default that may arise by reason of such
representation or warranty proving to have been false or misleading.

7.10 Waiver of Jury Trial. EACH OF THE BORROWER AND THE LENDER HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT, THE NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

7.11 No Fiduciary Relationship. The Borrower acknowledges that the Lender has no
fiduciary relationship with, or fiduciary duty to, the Borrower arising out of
or in connection with this Agreement or the Note, and the relationship between
the Lender and the Borrower is solely that of creditor and debtor. This
Agreement does not create a joint venture among the parties.

           IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their respective officers thereunto duly authorized, as of the
date first above written.

                               Alliance Semiconductor Corporation

                               By:  /s/ N. Damodar Reddy
                                    --------------------------------------
                                    N. Damodar Reddy, President

                               Address for Notices:
                               2575 Augustine Drive
                               Santa Clara, California 95054
                               Facsimile: (408) 855-4999
                               Telephone: (408) 855-4900

                               CITIBANK, N.A.

                               By: /s/ Herman Hirsch
                                   ---------------------------------------
                                   Herman Hirsch, Authorized Person

                               Address for Notices:
                               390 Greenwich Street
                               New York, New York 10013
                               Facsimile: (212) 723-8328
                               Telephone: (212) 723-7361

<PAGE>

                                    EXHIBIT A

                                      NOTE
U.S.$60,000,000.00                                          Dated:  May 17, 2001

           FOR VALUE RECEIVED, the undersigned Alliance Semiconductor
Corporation, a Delaware Corporation, (the "Borrower"), HEREBY PROMISES TO PAY to
the order of CITIBANK, N.A. (the "Lender") on November 19, 2001("the Maturity
Date") the principal sum of $60,000,000.00 (sixty million United States dollars)
or, if less, the aggregate outstanding principal amount of the Advances plus any
interest accrued as defined in and pursuant to the Loan Agreement as defined
below.

           The Borrower promises to pay interest on the unpaid principal amount
of each Advance from the date of the Advance until such principal amount is paid
in full, at such interest rates, and payable at such times, as are specified in
the Loan Agreement.

           Both principal and interest are payable in lawful money of the United
States of America at the office of the Lender at 399 Park Avenue, New York, New
York 10043,

           This Note is the Note referred to in, and is entitled to the benefits
of, the Loan Agreement dated as of May 17, 2001 (the "Loan Agreement", the terms
defined therein being used herein as therein defined) between the Borrower and
the Lender. The Loan Agreement contains provisions for acceleration of the
Maturity Date hereof upon the happening of certain stated events and also for
prepayments on account of principal hereof prior to the Maturity Date hereof
upon the terms and conditions therein specified.

           The Borrower hereby waives presentment, demand, protest and notice of
any kind. No failure to exercise, and no delay in exercising, any rights
hereunder on the part of the holder hereof shall operate as a waiver of such
rights.

           This Note shall be governed by, and construed in accordance with, the
laws of the State of New York, United States without regard to its conflicts of
law provisions.

                               Alliance Semiconductor Corporation

                               By:  /s/ N. Damodar Reddy
                                    --------------------------------------
                                  N. Damodar Reddy, President

<PAGE>

EXHIBIT B

[PLEDGE AGREEMENT]

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