Document:

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December 28, 2001

Mr. James Whalen
Chief Financial Officer
Zoltek Companies, Inc.
3101 McKelvey Road
St. Louis, MO 63044

Dear Jim:

This letter is to confirm that Southwest Bank of St. Louis ("Bank") is
agreeable to waiving certain loan covenants and modifying others in
Section 6.03, Specific Financial Covenants of the Credit Agreement dated
May 11, 2001 by and between the Bank and Zoltek Companies, Inc., et al.
("Zoltek"), as follows:

         1)   Section 6.03(b) Debt Coverage Ratio - This covenant shall
              be waived for the periods ending December 31, 2001 and
              March 31, 2002. This covenant as defined in the Credit Agreement
              will resume for the period ending June 30, 2002 and thereafter.
              It will be calculated on a quarterly basis for all periods.

         2)   Section 6.03(c) Current Ratio - This covenant shall be amended
              and modified to no less than 1.75 to 1.0.

         3)   Section 6.03(d) Inventory Turn Ratio - This covenant shall be
              amended and modified to 2.2 to 1.0 for the period ending
              March 31, 2002, 2.4 to 1.0 for the period ending June 30, 2002
              and 2.5 to 1.0 for the period ending September 30, 2002 and
              thereafter.

All other terms and conditions of this Credit Agreement shall remain in full
force and effect.

In consideration of the above referenced waiver and amendments the rate of
interest as defined under Section 3 INTEREST, FEES, REPAYMENT AND TERM shall
change to Southwest Bank of St. Louis Prime Rate plus 1/4%, to be adjusted
with each change in Prime. Furthermore, the Borrower agrees to make a
one-time payment of $25,000.00 as additional consideration for this waiver
and modifications to the Credit Agreement, payable within 14 days of the
date of this letter. This original rate of interest will take effect upon
Zoltek being in compliance with all of the original terms of this Credit
Agreement.

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Jim, if Zoltek is agreeable to this, please indicate so by signing below and
returning a copy of this to my attention as soon as possible. If you should
have any questions regarding this letter, please feel free to call.

Sincerely,

/s/ Robert J. Witterschein
------------------------------
Robert J. Witterschein
Senior Vice President

Agreed to and accepted this 28th day of December, 2001.

Zoltek Companies, Inc.

/s/ James F. Whalen
------------------------------
James F. Whalen
Chief Financial OfficerEXHIBIT 10.3.2
                                                                  --------------

                               AMENDMENT NUMBER 2

                          EXTENDED SYSTEMS INCORPORATED
                        1998 EMPLOYEE STOCK PURCHASE PLAN

Extended Systems Incorporated, pursuant to and in accordance with the provisions
of Section 14 of the Extended Systems Incorporated 1998 Employee Stock Purchase
Plan, does hereby amend said Plan, effective as of January 16, 2002, as follows:

Section 2, paragraph (j), titled "Fair Market Value", subparagraph (i), is
replaced in its entirety with the following sentence:

            "If the Common Stock is listed on any established stock exchange or
            a national market system, including without limitation The Nasdaq
            National Market or The Nasdaq SmallCap Market of The Nasdaq Stock
            Market, its Fair Value shall be the closing sales price for such
            stock (or the closing bid, if no sales were reported) as quoted on
            such exchange or system on the date of determination, as reported in
            THE WALL STREET JOURNAL or such other source as the Administrator
            deems reliable; or"EXHIBIT 10.26
                                                                   -------------

FUNCTIONAL MANAGEMENT TEAM  EMPLOYMENT AGREEMENT

THIS AGREEMENT is made between EXTENDED SYSTEMS OF IDAHO, INCORPORATED (ESI) and
Brad Surkamer (EMPLOYEE) for the employment of EMPLOYEE by ESI.

IT IS AGREED BETWEEN THE PARTIES:

1.   EMPLOYMENT: ESI hereby hires EMPLOYEE and EMPLOYEE accepts employment with
     ESI as Vice President of Worldwide Sales.

2.   TERMS OF EMPLOYMENT: This Agreement shall commence the19th day of December,
     2001 and shall continue until terminated by either party pursuant to
     paragraph five.

3.   COMPENSATION: The EMPLOYEE shall receive as compensation for his/her
     services the amount of $12,978 per month plus all employee benefits as set
     forth in the current issue of the Extended Systems Employee Handbook.

4.   DUTIES OF EMPLOYEE: EMPLOYEE shall have the duties and authority as set
     forth in the job description.

5.   VACATION: EMPLOYEE shall accumulate paid vacation as set forth in Extended
     Systems Time-Off Policy.

6.   TRAVEL EXPENSES: EMPLOYEE shall be reimbursed for all authorized travel and
     lodging expenses.

7.   FRINGE BENEFITS: Fringe benefits shall be provided by ESI as set forth in
     the Extended Systems Employee Handbook which is located on the HR Intranet.
     I understand that I am responsible for familiarizing myself with the
     contents of the handbook. I understand that the contents in the Employee
     Handbook are subject to change at Extended Systems' discretion and do not
     create any contractual commitments by the Company. /s/ BS (Employee
     Initials).

8.   DRUG AND ALCOHOL POLICY: EMPLOYEE agrees to abide by the terms of the
     Extended Systems Drug and Alcohol Policy. Receipt of Drug and Alcohol
     Policy is hereby acknowledged. /s/ BS (Employee Initials).

9.   NON-DISCLOSURE AGREEMENT: EMPLOYEE agrees to abide by the terms of the
     Extended Systems Non-Disclosure Agreement.

10.  INSIDER TRADING POLICY: EMPLOYEE agrees to abide by the terms of Extended
     Systems' Insider Trading Policy.

11.  NOTICE OF TERMINATION: With or without good cause either party may
     terminate this agreement by giving fourteen (14) days written notice to the
     other party. Termination of this Agreement shall not terminate the
     NONDISCLOSURE AGREEMENT between the parties.

12.  SEVERANCE PAY: In the event EMPLOYEE is terminated without cause, EMPLOYEE
     shall be entitled to six (6) months of pay, at EMPLOYEE'S current base
     salary, plus $2,000.00 in lieu of fringe benefits, and payout of accrued
     vacation. In order to receive such salary and fringe benefits payment,
     EMPLOYEE must execute the then current company "Release of All Employment
     Claims." Participation in all stock option plans, stock purchase plans, and
     other company personnel benefits shall cease on the EMPLOYEE's date of
     termination, subject to the specific provisions of option agreements or
     plans that may extend EMPLOYEE's rights beyond date of termination. If
     EMPLOYEE is removed from the Functional Management Team (FMT) into another
     position within ESI, the EMPLOYEE shall only be entitled to receive a pro
     rata severance payment. For example, if EMPLOYEE is removed from the
     Functional Management Team into another position, and 3-months later is
     terminated without cause from the new position, EMPLOYEE would be entitled
     to receive a pro-rata amount of the 6-months termination pay and fringe
     benefits payment (3-months base salary and $1,000.00 fringe benefits
     payment). As another example, if EMPLOYEE is in the new position for
     9-months and is then terminated, no termination payment would be due under
     this agreement. In the event of a change of control of the company or if
     the company is acquired by another company, person or entity, the six (6)
     month base salary termination payment shall be increased to twelve (12)
     months. EMPLOYEE is responsible for any tax consequences triggered by
     severance payment or a change in control.

DATED this 19th day of December, 2001.

/s/ Brad Surkamer                         /s/ Steven D. Simpson
-------------------------------------     --------------------------------------
FUNCTIONAL MANAGEMENT TEAM EMPLOYEE       EXTENDED SYSTEMSEXHIBIT 10.27
                                                                   -------------

FUNCTIONAL MANAGEMENT TEAM  EMPLOYMENT AGREEMENT

THIS AGREEMENT is made between EXTENDED SYSTEMS OF IDAHO, INCORPORATED (ESI) and
Karla Rosa (EMPLOYEE) for the employment of EMPLOYEE by ESI.

IT IS AGREED BETWEEN THE PARTIES:

1.   EMPLOYMENT: ESI hereby hires EMPLOYEE and EMPLOYEE accepts employment with
     ESI as Chief Financial Officer.

2.   TERMS OF EMPLOYMENT: This Agreement shall commence the 21st day of
     December, 2001 and shall continue until terminated by either party pursuant
     to paragraph five.

3.   COMPENSATION: The EMPLOYEE shall receive as compensation for his/her
     services the amount of $14,583 per month plus all employee benefits as set
     forth in the current issue of the Extended Systems Employee Handbook.

4.   DUTIES OF EMPLOYEE: EMPLOYEE shall have the duties and authority as set
     forth in the job description.

5.   VACATION: EMPLOYEE shall accumulate paid vacation as set forth in Extended
     Systems Time-Off Policy.

6.   TRAVEL EXPENSES: EMPLOYEE shall be reimbursed for all authorized travel and
     lodging expenses.

7.   FRINGE BENEFITS: Fringe benefits shall be provided by ESI as set forth in
     the Extended Systems Employee Handbook which is located on the HR Intranet.
     I understand that I am responsible for familiarizing myself with the
     contents of the handbook. I understand that the contents in the Employee
     Handbook are subject to change at Extended Systems' discretion and do not
     create any contractual commitments by the Company. /s/ KR (Employee
     Initials)

8.   DRUG AND ALCOHOL POLICY: EMPLOYEE agrees to abide by the terms of the
     Extended Systems Drug and Alcohol Policy. Receipt of Drug and Alcohol
     Policy is hereby acknowledged. /s/ KR (Employee Initials).

9.   NON-DISCLOSURE AGREEMENT: EMPLOYEE agrees to abide by the terms of the
     Extended Systems Non-Disclosure Agreement.

10.  INSIDER TRADING POLICY: EMPLOYEE agrees to abide by the terms of Extended
     Systems' Insider Trading Policy.

11.  NOTICE OF TERMINATION: With or without good cause either party may
     terminate this agreement by giving fourteen (14) days written notice to the
     other party. Termination of this Agreement shall not terminate the
     NONDISCLOSURE AGREEMENT between the parties.

12.  SEVERANCE PAY: In the event EMPLOYEE is terminated without cause, EMPLOYEE
     shall be entitled to six (6) months of pay, at EMPLOYEE'S current base
     salary, plus $2,000.00 in lieu of fringe benefits, and payout of accrued
     vacation. In order to receive such salary and fringe benefits payment,
     EMPLOYEE must execute the then current company "Release of All Employment
     Claims." Participation in all stock option plans, stock purchase plans, and
     other company personnel benefits shall cease on the EMPLOYEE's date of
     termination, subject to the specific provisions of option agreements or
     plans that may extend EMPLOYEE's rights beyond date of termination. If
     EMPLOYEE is removed from the Functional Management Team (FMT) into another
     position within ESI, the EMPLOYEE shall only be entitled to receive a pro
     rata severance payment. For example, if EMPLOYEE is removed from the
     Functional Management Team into another position, and 3-months later is
     terminated without cause from the new position, EMPLOYEE would be entitled
     to receive a pro-rata amount of the 6-months termination pay and fringe
     benefits payment (3-months base salary and $1,000.00 fringe benefits
     payment). As another example, if EMPLOYEE is in the new position for
     9-months and is then terminated, no termination payment would be due under
     this agreement. In the event of a change of control of the company or if
     the company is acquired by another company, person or entity, the six (6)
     month base salary termination payment shall be increased to twelve (12)
     months. EMPLOYEE is responsible for any tax consequences triggered by
     severance payment or a change in control.

DATED this 21st day of December, 2001.

/s/ Karla K. Rosa                         /s/ Steven D. Simpson
-------------------------------------     --------------------------------------
FUNCTIONAL MANAGEMENT TEAM EMPLOYEE       EXTENDED SYSTEMS

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