Document:

Exhibit 10.2

                               AMENDMENT NO. 1 TO
                           LOAN AND SECURITY AGREEMENT

     THIS AMENDMENT NO. 1 TO LOAN AND SECURITY  AGREEMENT  ("Amendment") is made
and entered  into as of January 24, 2005 by and  between  ELECTROGLAS,  INC.,  a
Delaware corporation ("Borrower") and COMERICA BANK ("Bank").

                                    RECITALS

     A.  Borrower  and Bank have  entered  into that  certain  Loan and Security
Agreement  dated as of July 16,  2004 (the "Loan  Agreement")  pursuant to which
Bank has  agreed  to  extend  and make  available  to  Borrower  certain  credit
facilities.

     B. Borrower  desires that Bank amend the Loan  Agreement upon the terms and
conditions more fully set forth herein.

     C. Subject to the  representations  and  warranties of Borrower  herein and
upon the terms and conditions set forth in this Amendment, Bank is willing to so
amend the Loan Agreement.

     D. This  Amendment,  the Loan  Agreement  and the other Loan  Documents (as
defined in the Loan Agreement),  together with all other documents  entered into
or  delivered  pursuant  to any of the  foregoing,  in each  case as  originally
executed  or  as  the  same  may  from  time  to  time  be  modified,   amended,
supplemented,  restated or superseded,  are hereinafter collectively referred to
as the "Loan Documents."

                                    AGREEMENT

     NOW,  THEREFORE,  in consideration of the foregoing recitals and the mutual
covenants  herein set forth and for other good and valuable  consideration,  the
receipt and  sufficiency of which are hereby  acknowledged,  and intending to be
legally  bound,  Borrower and Bank hereby  agree to amend the Loan  Agreement as
follows:

          1. Definitions.  Unless otherwise defined herein, all terms defined in
the Loan Agreement have the same meaning when used herein.

          2. Amendments to Loan Agreement.

               a. The following definitions are hereby added to Exhibit A to the
Loan Agreement:

          "`Letter of Credit' means a commercial or standby  letter of credit or
similar  undertaking  issued by Bank at Borrower's  request in  accordance  with
Section 2.1(b)(iv)."

          "`Letter of Credit  Sublimit'  means a sublimit  for Letters of Credit
under the Revolving Line not to exceed $500,000.00."

                                       1

<PAGE>

               b. The definition of "Current Liabilities" contained in Exhibit A
to the Loan Agreement is hereby amended by adding the following  language to the
end thereof:

               "plus,  to the  extent  not  already  included  therein,  undrawn
Letters  of  Credit,  if  any,  but  specifically   excluding  any  cash-secured
Obligations"

               c. Section  2.1(b)(i) of the Loan Agreement is hereby amended and
restated in its entirety to read as follows:

               "(i) Amount. Subject to and upon the terms and conditions of this
Agreement,  at any time and from time to time from the date  hereof  through the
Business Day  immediately  prior to the Revolving  Maturity  Date,  Borrower may
request, and Bank will make, Advances in an aggregate  outstanding amount not to
exceed the amount of the Revolving Line, less any amounts  outstanding under the
Letter of Credit Sublimit.  Borrower may request Advances in an aggregate amount
not to  exceed  $2,000,000  (the  "Non-Formula  Amount")  without  regard to the
Borrowing  Base.  In addition,  subject to and upon the terms and  conditions of
this  Agreement,  at any time and from time to time from the date hereof through
the Business Day immediately prior to the Revolving Maturity Date,  Borrower may
request Advances in an aggregate outstanding amount that exceeds the Non-Formula
Amount, provided that, the aggregate outstanding amount of Advances in excess of
the  Non-Formula  Amount shall not exceed the lesser of (A) the  Revolving  Line
minus the Non-Formula  Amount or (B) the Borrowing Base (each, a "Borrowing Base
Advance"),  less any amounts outstanding under the Letter of Credit Sublimit. If
at any time or from time to time, the aggregate  outstanding  amount of Advances
exceeds the Non-Formula Amount and, thereafter, the aggregate outstanding amount
of  Advances  is  reduced  below  the  Non-Formula  Amount,  for so  long as the
aggregate  outstanding  amount  of  Advances  is  less  than  or  equal  to  the
Non-Formula  Amount,  the Advances  shall not be subject to the Borrowing  Base.
Subject to and upon the terms and conditions of this Agreement, amounts borrowed
pursuant to this Section  2.1(b) may be repaid and  reborrowed at any time prior
to the Revolving  Maturity  Date, at which time all Advances  under this Section
2.1(b) shall be immediately  due and payable.  Borrower may prepay any Advances,
in whole or in part, without penalty or premium."

               d. The  following  new Section  2.1(b)(iv) is hereby added to the
Loan Agreement immediately after Section 2.1(b)(iii) thereof:

               "(iv) Letters of Credit.  Subject to the  availability  under the
Revolving  Line,  and in  reliance  on the  representations  and  warranties  of
Borrower  set  forth  herein,  at any time and from  time to time  from the date
hereof  through the Business Day  immediately  prior to the  Revolving  Maturity
Date,  Bank shall issue for the account of  Borrower  such  Letters of Credit as
Borrower  may request by  delivering  to Bank a duly  executed  letter of credit
application on Bank's standard form; provided, however, that the outstanding and
undrawn  amounts  under all such  Letters  of  Credit  (i) shall not at any time
exceed the  Letter of Credit  Sublimit,  and (ii) shall be deemed to  constitute
Advances for the purpose of calculating  availability  under the Revolving Line.
Any drawn but unreimbursed  amounts under any Letters of Credit shall be charged
as Advances  against the Revolving  Line. All Letters of Credit shall be in form
and substance  acceptable to Bank in its sole discretion and shall be subject to
the terms  and  conditions  of  Bank's  form  application  and  letter of credit

                                       2

<PAGE>

agreement.  Borrower  will pay any  standard  issuance  and other fees that Bank
notifies  Borrower it will charge for issuing and processing  Letters of Credit.
Unless  Borrower  shall have  deposited  with Bank cash  collateral in an amount
sufficient  to cover all  undrawn  amounts  under each such Letter of Credit and
Bank shall have agreed in writing,  no Letter of Credit shall have an expiration
date that is later than the Revolving Maturity Date. If Borrower has not secured
to Bank's  satisfaction its obligations with respect to any Letters of Credit by
the Revolving Maturity Date, then, effective as of such date, the balance in any
deposit  accounts held by Bank and the  certificates  of deposit or time deposit
accounts  issued by Bank in  Borrower's  name (and any interest  paid thereon or
proceeds thereof, including any amounts payable upon the maturity or liquidation
of such certificates or accounts),  shall automatically  secure such obligations
to the extent of the then  outstanding and undrawn  Letters of Credit.  Borrower
authorizes  Bank to hold such  balances  in pledge  and to  decline to honor any
drafts  thereon  or any  requests  by  Borrower  or any  other  Person to pay or
otherwise  transfer  any part of such  balances  for so long as the  Letters  of
Credit are outstanding."

               e.  Section 9.1 of the Loan  Agreement is amended (i) by deleting
"and" at the end of subsection  (i) thereof;  (ii) by deleting the period at the
end of subsection (j) thereof and  substituting  "; and" therefor;  and (iii) by
including the following new  subsection  (k)  immediately  after  subsection (j)
thereof:

               "(k) Demand that Borrower (i) deposit cash with Bank in an amount
equal to the amount of any Letters of Credit  remaining  undrawn,  as collateral
security for the repayment of any future  drawings under such Letters of Credit,
and (ii) pay in  advance  all  Letter of  Credit  fees  scheduled  to be paid or
payable over the  remaining  term of the Letters of Credit,  and Borrower  shall
promptly deposit and pay such amounts."

               f. Exhibit E to the Loan Agreement  (Borrowing Base  Certificate)
is hereby  deleted  and  replaced  with  Exhibit E in the form  attached to this
Amendment.

               3.  Ratification  and  Reaffirmation  of Liens.  Borrower  hereby
ratifies and reaffirms the validity and  enforceability  of all of the liens and
security  interests  heretofore  granted  pursuant  to the  Loan  Documents,  as
collateral security for the Obligations,  and acknowledge that all of such liens
and security  interests,  and all Collateral  heretofore pledged as security for
the Obligations, continues to be and remains Collateral for the Obligations from
and after the date hereof.

               4.  Representations  And  Warranties.   Borrower  represents  and
warrants  that its  representations  and  warranties  in the Loan  Documents (as
amended hereby) continue to be true and complete in all material  respects as of
the date hereof after giving effect to this Amendment (except to the extent such
specifically  relate to  another  date)  and that the  execution,  delivery  and
performance of this Amendment are duly authorized, do not require the consent or
approval  of any  governmental  body  or  regulatory  authority  and  are not in
contravention  of or in  conflict  with  any law or  regulation  or any  term or
provision of any other  agreement  entered into by  Borrower.  Borrower  further
represents  and warrants that, as of the date hereof after giving effect to this
Amendment, no Event of Default has occurred and is continuing.

                                       3

<PAGE>

               5. Full Force And Effect; Entire Agreement.  Except to the extent
expressly  provided  in this  Amendment,  the terms and  conditions  of the Loan
Agreement  and the other Loan  Documents  shall remain in full force and effect.
This  Amendment and the other Loan  Documents  constitute and contain the entire
agreement  of the parties  hereto and  supersede  any and all prior  agreements,
negotiations,  correspondence,  understandings  and  communications  between the
parties,  whether  written or oral,  respecting the subject  matter hereof.  The
parties  hereto  further  agree  that the Loan  Documents  comprise  the  entire
agreement of the parties  thereto and  supersede  any and all prior  agreements,
negotiations,  correspondence,  understandings and other communications  between
the parties thereto,  whether written or oral respecting the extension of credit
by Bank to Borrower and/or its affiliates. Except as expressly set forth herein,
the execution, delivery and performance of this Amendment shall not operate as a
waiver of, or as an amendment  of, any right,  power or remedy of Bank under the
Loan Agreement or any other Loan Document as in effect prior to the date hereof.

               6. Counterparts; Effectiveness. This Amendment may be executed in
any number of  counterparts,  each of which when so delivered shall be deemed an
original,  but all such counterparts taken together shall constitute but one and
the same  instrument.  This  Amendment  is  effective as of the date first above
written;  provided that, as a condition  precedent to the  effectiveness of this
Amendment,  (i) there shall have been no material adverse change in the business
operations   or  condition   (financial   or  otherwise)  of  Borrower  and  its
Subsidiaries  taken  as a whole,  no  material  impairment  of the  prospect  of
repayment  of any  portion of the  Obligations  owing to Bank,  and no  material
impairment of the value or priority of the security  interest in the  Collateral
and (ii) Bank shall have received,  in form and substance  satisfactory to Bank,
the following:

               (a) this Amendment, duly executed by Borrower;

               (b) payment of the fees and Bank  Expenses  then due specified in
Section 2.5 of the Loan Agreement, as amended hereby; and

               (c) such other  documents,  and completion of such other matters,
as Bank may reasonably deem necessary or appropriate.

                           [signature page to follow]

                                       4

<PAGE>

     IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to
be executed and  delivered by its duly  authorized  officer as of the date first
written above.

                                                   BORROWER:

                                                   ELECTROGLAS, INC.

                                                   By: /s/ Thomas E. Brunton
                                                       -------------------------

                                                   Title Chief Financial Officer
                                                         -----------------------

                                                   BANK:

                                                   COMERICA BANK

                                                   By: /s/ Robert R. Shutt
                                                       -------------------------

                                                   Title: Senior Vice President
                                                          ----------------------

                                       5
<PAGE>

                                    EXHIBIT E

                           BORROWING BASE CERTIFICATE

Borrower:  Electroglas, Inc.                              Lender:  Comerica Bank

Commitment Amount:  $7,500,000

ACCOUNTS RECEIVABLE*

         1.       Accounts Receivable Book Value as of ___          $___________
         2.       Additions (please explain on reverse)             $___________
         3.       TOTAL ACCOUNTS RECEIVABLE                         $___________

ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)*

         4.       Amounts over 90 days of invoice date        $___________
         5.       Balance of 25% (50% in the case of National
                  Semiconductor) over 90 day accounts         $___________
         6.       Concentration Limits                        $___________
         7.       Foreign Accounts                            $___________
         8.       Governmental Accounts                       $___________
         9.       Contra Accounts                             $___________
         10.      Demo Accounts                               $___________
         11.      Intercompany/Employee Accounts              $___________
         12.      Other (please explain on reverse)           $___________
         13.      TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS              $___________
         14.      Eligible Accounts (#3 minus #13)                  $___________
         15.      LOAN VALUE OF ACCOUNTS (80% of #14)               $___________

BALANCES

         16.      Revolving Line minus Non-Formula Amount           $___________
         17.      Total Funds Available [Lesser of #16 or #15]      $___________
         18.      Advances in excess of Non-Formula Amount          $___________
         19.      Outstanding under Letter of Credit Sublimit       $___________
         20.      RESERVE POSITION (#17 minus #18 and #19)          $___________

*    As determined in accordance  with the Loan and Security  Agreement dated as
     of July 16, 2004 between Borrower and Lender.

                                       1

<PAGE>

The undersigned represents and warrants that the foregoing is true, complete and
correct,  and that the information  reflected in this Borrowing Base Certificate
complies  with the  representations  and  warranties  set  forth in the Loan and
Security Agreement between the undersigned and Comerica Bank.

ELECTROGLAS, INC.

By:
    -------------------------------------------------
Authorized Signer

                                       2Exhibit 10.3

                               AMENDMENT NO. 2 TO
                           LOAN AND SECURITY AGREEMENT

     THIS AMENDMENT NO. 2 TO LOAN AND SECURITY  AGREEMENT  ("Amendment") is made
and  entered  into as of July  12,  2005 by and  between  ELECTROGLAS,  INC.,  a
Delaware corporation ("Borrower") and COMERICA BANK ("Bank").

                                    RECITALS

     A.  Borrower  and Bank have  entered  into that  certain  Loan and Security
Agreement  dated as of July 16, 2004,  as amended by Amendment No. 1 to Loan and
Security  Agreement  dated as of  January  24,  2005  (collectively,  the  "Loan
Agreement")  pursuant to which Bank has agreed to extend and make  available  to
Borrower certain credit facilities.

     B. Borrower  desires that Bank amend the Loan  Agreement upon the terms and
conditions more fully set forth herein.

     C. Subject to the  representations  and  warranties of Borrower  herein and
upon the terms and conditions set forth in this Amendment, Bank is willing to so
amend the Loan Agreement.

     D. This  Amendment,  the Loan  Agreement  and the other Loan  Documents (as
defined in the Loan Agreement),  together with all other documents  entered into
or  delivered  pursuant  to any of the  foregoing,  in each  case as  originally
executed  or  as  the  same  may  from  time  to  time  be  modified,   amended,
supplemented,  restated or superseded,  are hereinafter collectively referred to
as the "Loan Documents."

                                    AGREEMENT

     NOW,  THEREFORE,  in consideration of the foregoing recitals and the mutual
covenants  herein set forth and for other good and valuable  consideration,  the
receipt and  sufficiency of which are hereby  acknowledged,  and intending to be
legally  bound,  Borrower and Bank hereby  agree to amend the Loan  Agreement as
follows:

          1. Definitions.  Unless otherwise defined herein, all terms defined in
the Loan Agreement have the same meaning when used herein.

          2. Amendment to Loan Agreement.

               a. The  definition  of  "Revolving  Maturity  Date"  contained in
Exhibit  A to the Loan  Agreement  is hereby  amended  and  restated  to read as
follows:

               "Revolving Maturity Date" means June 15, 2006.

               b.  Section  6.7(b) of the Loan  Agreement  is hereby  amended by
substituting "$50,000,000" for "$60,000,000" in the second line thereof.

                                       1

<PAGE>

          3. Ratification and  Reaffirmation of Liens.  Borrower hereby ratifies
and reaffirms the validity and  enforceability  of all of the liens and security
interests  heretofore  granted  pursuant to the Loan  Documents,  as  collateral
security  for the  Obligations,  and  acknowledge  that  all of such  liens  and
security  interests,  and all Collateral  heretofore pledged as security for the
Obligations, continues to be and remains Collateral for the Obligations from and
after the date hereof.

          4.  Representations  And Warranties.  Borrower represents and warrants
that its  representations  and  warranties  in the Loan  Documents  (as  amended
hereby) continue to be true and complete in all material respects as of the date
hereof  after  giving  effect  to this  Amendment  (except  to the  extent  such
specifically  relate to  another  date)  and that the  execution,  delivery  and
performance of this Amendment are duly authorized, do not require the consent or
approval  of any  governmental  body  or  regulatory  authority  and  are not in
contravention  of or in  conflict  with  any law or  regulation  or any  term or
provision of any other  agreement  entered into by  Borrower.  Borrower  further
represents  and warrants that, as of the date hereof after giving effect to this
Amendment, no Event of Default has occurred and is continuing.

          5. Full  Force And  Effect;  Entire  Agreement.  Except to the  extent
expressly  provided  in this  Amendment,  the terms and  conditions  of the Loan
Agreement  and the other Loan  Documents  shall remain in full force and effect.
This  Amendment and the other Loan  Documents  constitute and contain the entire
agreement  of the parties  hereto and  supersede  any and all prior  agreements,
negotiations,  correspondence,  understandings  and  communications  between the
parties,  whether  written or oral,  respecting the subject  matter hereof.  The
parties  hereto  further  agree  that the Loan  Documents  comprise  the  entire
agreement of the parties  thereto and  supersede  any and all prior  agreements,
negotiations,  correspondence,  understandings and other communications  between
the parties thereto,  whether written or oral respecting the extension of credit
by Bank to Borrower and/or its affiliates. Except as expressly set forth herein,
the execution, delivery and performance of this Amendment shall not operate as a
waiver of, or as an amendment  of, any right,  power or remedy of Bank under the
Loan Agreement or any other Loan Document as in effect prior to the date hereof.

          6. Counterparts;  Effectiveness. This Amendment may be executed in any
number  of  counterparts,  each of which  when so  delivered  shall be deemed an
original,  but all such counterparts taken together shall constitute but one and
the same  instrument.  This  Amendment  is  effective as of the date first above
written;  provided that, as a condition  precedent to the  effectiveness of this
Amendment,  (i) there shall have been no material adverse change in the business
operations   or  condition   (financial   or  otherwise)  of  Borrower  and  its
Subsidiaries  taken  as a whole,  no  material  impairment  of the  prospect  of
repayment  of any  portion of the  Obligations  owing to Bank,  and no  material
impairment of the value or priority of the security  interest in the  Collateral
and (ii) Bank shall have received,  in form and substance  satisfactory to Bank,
the following:

               (a)  this Amendment, duly executed by Borrower;

               (b)  payment of the fees and Bank  Expenses then due specified in
Section 2.5 of the Loan Agreement, as amended hereby; and

                                       2

<PAGE>

               (c)  such other documents,  and completion of such other matters,
as Bank may reasonably deem necessary or appropriate.

     IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to
be executed and  delivered by its duly  authorized  officer as of the date first
written above.

                                   BORROWER:

                                   ELECTROGLAS, INC.

                                   By: /s/ Thomas E. Brunton
                                       ----------------------------------------

                                   Title: Chief Financial Officer
                                          -------------------------------------

                                   BANK:

                                   COMERICA BANK

                                   By: /s/ Benjamin Yu
                                       ----------------------------------------

                                   Title: VP, Technology Life Sciences Division
                                          -------------------------------------

                                       3

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