Document:

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                                                                 EXHIBIT 10.11.1

                                                                   Loan No. 1440

                             MODIFICATION AGREEMENT

                                  SECURED LOAN

THIS MODIFICATION AGREEMENT ("Agreement") dated June 1, 2002 is entered into by
and between WELLS FARGO BANK, NATIONAL ASSOCIATION ("Lender"), and
COMMUNICATIONS & POWER INDUSTRIES HOLDING CORPORATION, a Delaware corporation
("Borrower").

                                 R E C I T A L S

A.      Pursuant to the terms of a loan agreement between Borrower and Lender
        dated December 22, 2000 ("Loan Agreement"), Lender made a loan to
        Borrower in the principal amount of EIGHTEEN MILLION AND NO/100 DOLLARS
        ($18,000,000.00) ("Loan"). The Loan is evidenced by a promissory note
        dated as of the date of the Loan Agreement, executed by Borrower in
        favor of Lender, in the principal amount of the Loan ("Note"), and is
        further evidenced by the documents described in the Loan Agreement as
        "Loan Documents". The Note is secured by, among other things, a deed of
        trust ("Deed of Trust") dated December 22, 2000, executed by Borrower,
        as Trustor, to American Securities Company, as Trustee, in favor of
        Lender, as Beneficiary. The Deed of Trust was recorded December 22,
        2000, as Document No. 2000-162764, in the Official Records of San Mateo
        County, California.

B.      As of May 31, 2002, the outstanding principal balance under the Loan was
        Eighteen Million and No/100 Dollars ($18,000,000.00)

C.      The Note, Deed of Trust, Loan Agreement, this Agreement, the other
        documents described in the Loan Agreement as "Loan Documents" (the
        "Existing Loan Documents"), together with all modifications and
        amendments thereto, the Modification Documents (as defined below), and
        any document required hereunder, are collectively referred to
        hereinafter as the "Loan Documents".

D.      By this Agreement, Borrower and Lender intend to modify and amend
        certain terms and provisions of the Loan Documents, which shall become
        effective on June 1, 2002 (the "Effective Date").

NOW, THEREFORE, Borrower and Lender agree as follows:

1.      CONDITIONS PRECEDENT. The following are conditions precedent to Lender's
        obligations under this Agreement:

        1.1     If required by Lender, receipt and approval by Lender of a date
                down to Title Policy No. SM-461651 dated December 22, 2000,
                issued by First American Title Insurance Company ("Title
                Company") and assurance acceptable to Lender, including, without
                limitation, CLTA Endorsement No. 110.5, without deletion or
                exception other than those expressly approved by Lender in
                writing, that the priority and validity of the Deed of Trust
                encumbering the property (the "Property") has not been and will
                not be impaired by this Agreement or the transactions
                contemplated hereby;

        1.2     Receipt by Lender of the executed originals of this Agreement,
                the short form of this Agreement (if any) and any and all other
                documents (the "Modification Documents") and agreements which
                are required by this Agreement or by any other Loan Document,
                each in form and content acceptable to Lender;

        1.3     Recordation in the Official Records of the County where the
                Property is located of (i) the short form of this Agreement (if
                any), and (ii) any other documents which are required to be
                recorded by this Agreement or by any other Loan Document (if
                any);

        1.4     Reimbursement to Lender by Borrower of Lender's costs and
                expenses incurred in connection with this Agreement and the
                transactions contemplated hereby, including, without limitation,
                title insurance costs, recording fees, attorneys' fees,
                appraisal, engineers' and inspection fees and documentation
                costs and charges, whether such services are furnished by
                Lender's employees or agents or by independent contractors;

        1.5     Borrower shall provide, at Borrower's expense, an opinion of
                legal counsel in form and content satisfactory to Lender to the
                effect that: (a) upon due authorization, execution and
                recordation or filing as may be specified in the opinion, each
                of the Modification Documents shall be legal, valid and binding
                instruments, enforceable

<PAGE>
                against the makers thereof in accordance with their respective
                terms; (b) Borrower is duly formed and has all requisite
                authority to enter into the Modification Documents; and (c) such
                other matters, incident to the transactions contemplated hereby,
                as Lender may reasonably request.

        1.6     The representations and warranties contained in this Agreement
                are true and correct;

        1.7     All payments due and owing to Lender under the Loan Documents
                have been paid current as of the effective date of this
                Agreement;

        1.8     Receipt and approval of an updated appraisal of the Property
                satisfactory to Lender;

        1.9     Borrower shall purchase interest rate protection satisfactory to
                Lender in the form of a LIBOR Cap (based on 30-day LIBOR), for
                the notional amount of $17,500,000.00, at a rate not to exceed
                three percent (3.00%) for the six (6) month period beginning
                December 1, 2002 and ending June 1, 2003.

        1.10    The payment to Lender of $250,000.00 to be applied as a
                principal paydown to the Loan. Upon receipt of said principal
                payment, the outstanding principal balance of the Loan shall be
                Seventeen Million Seven Hundred Fifty Thousand and No/100
                Dollars ($17,750,000.00).

        1.11    The payment to Lender of an extension fee in the amount of
                $45,000.00; and

        1.12    The payment to Lender of a documentation fee in the amount of
                $1,000.00.

2.      REPRESENTATIONS AND WARRANTIES. Borrower hereby represents and warrants
        that no Default, breach or failure of condition has occurred, or would
        exist with notice or the lapse of time or both, under any of the Loan
        Documents (as modified by this Agreement) and that all representations
        and warranties herein and in the other Loan Documents are true and
        correct, which representations and warranties shall survive execution of
        this Agreement.

3.      MODIFICATION OF LOAN DOCUMENTS. The Loan Documents are hereby
        supplemented and modified to incorporate the following, which shall
        supersede and prevail over any conflicting provisions of the Loan
        Documents:

        3.1     Extension of Maturity Date. On the Effective Date, the Maturity
                Date recited in the Note is hereby extended to June 1, 2003.

        3.2     Amended and Restated Note. On the Effective Date, the Note
                described in Recital A herein is superseded and replaced in its
                entirety by that certain Amended and Restated Promissory Note
                Secured by Deed of Trust executed by Borrower in the amount of
                SEVENTEEN MILLION SEVEN HUNDRED FIFTY THOUSAND AND NO/100
                DOLLARS ($17,750,000.00) of even date herewith.

        3.3     Principal Payments. In addition to the principal payment
                required in paragraph 1.9 above, Borrower shall make an
                additional principal payment in the amount of TWO HUNDRED FIFTY
                THOUSAND AND NO/100 DOLLARS ($250,000.00) on December 1, 2002.
                Notwithstanding such principal payment, any outstanding
                principal balance under the Note on the Maturity Date shall be
                due and payable on the Maturity Date. Any payment(s) required
                hereunder shall be due and payable on the first day of the month
                in which it is due and shall be applied to the outstanding
                principal balance of the Loan. Any principal balance reductions
                may not be reborrowed.

        3.4     Interest Rate. Except as otherwise provided herein, from and
                after the Effective Date, the Loan shall bear interest (based on
                a 360-day year basis and charged on the basis of actual days
                elapsed) at 4.25% percent per annum above the LIBO Rate pursuant
                to the terms of the Amended and Restated Promissory Note of even
                date herewith.

4.      FORMATION AND ORGANIZATIONAL DOCUMENTS. Borrower has previously
        delivered to Lender all of the relevant formation and organizational
        documents of Borrower, of the partners or joint venturers of Borrower
        (if any), and of all guarantors of the Loan (if any), and all such
        formation documents remain in full force and effect and have not been
        amended or modified since they were delivered to Lender. Borrower hereby
        certifies that: (i) the above

<PAGE>
        documents are all of the relevant formation and organizational documents
        of Borrower; (ii) they remain in full force and effect; and (iii) they
        have not been amended or modified since they were previously delivered
        to Lender.

5.      HAZARDOUS MATERIALS; CCP SECTION 726.5; SECTION 736. Without in any way
        limiting any other provision of this Agreement, Borrower expressly
        reaffirms as of the date hereof, and continuing hereafter: (i) each and
        every representation and warranty in the Loan Documents respecting
        "Hazardous Materials"; and (ii) each and every covenant and indemnity in
        the Loan Documents respecting "Hazardous Materials". In addition,
        Borrower and Lender agree that: (i) this Section is intended as Lender's
        written request for information (and Borrower's response) concerning the
        environmental condition of the real property security under the terms of
        California Code of Civil Procedure Section 726.5; and (ii) each
        representation and/or covenant in this Agreement or any other Loan
        Document (together with any indemnity applicable to a breach of any such
        representation and/or covenant) with respect to the environmental
        condition of the real property security is intended by Lender and
        Borrower to be an "environmental provision" for purposes of California
        Code of Civil Procedure Section 736.

6.      WAIVERS. In further consideration of Lender entering into this
        Agreement, Borrower waives, with respect to the Loan, any and all rights
        to which Borrower is or may be entitled pursuant to Section 580a (the
        so-called "Fair Market Antideficiency Rule"), 580d (the so-called
        "Private Sale Antideficiency Rule") and 726 (the so-called "One Form of
        Action Rule") of the California Code of Civil Procedure, as amended or
        recodified from time to time, together with any other antideficiency or
        similar laws which limit, qualify or reduce Borrower's obligations under
        the Loan Documents.

7.      NON-IMPAIRMENT. Except as expressly provided herein, nothing in this
        Agreement shall alter or affect any provision, condition, or covenant
        contained in the Note or other Loan Document or affect or impair any
        rights, powers, or remedies of Lender, it being the intent of the
        parties hereto that the provisions of the Note and other Loan Documents
        shall continue in full force and effect except as expressly modified
        hereby.

8.      MISCELLANEOUS. This Agreement and the other Loan Documents shall be
        governed by and interpreted in accordance with the laws of the State of
        California, except if preempted by federal law. In any action brought or
        arising out of this Agreement or the Loan Documents, Borrower, and the
        general partners and joint venturers of Borrower, hereby consent to the
        jurisdiction of any federal or state court having proper venue within
        the State of California and also consent to the service of process by
        any means authorized by California or federal law. The headings used in
        this Agreement are for convenience only and shall be disregarded in
        interpreting the substantive provisions of this Agreement. All
        capitalized terms used herein, which are not defined herein, shall have
        the meanings given to them in the other Loan Documents. Time is of the
        essence of each term of the Loan Documents, including this Agreement. If
        any provision of this Agreement or any of the other Loan Documents shall
        be determined by a court of competent jurisdiction to be invalid,
        illegal or unenforceable, that portion shall be deemed severed from this
        Agreement and the remaining parts shall remain in full force as though
        the invalid, illegal, or unenforceable portion had never been a part
        thereof.

9.      INTEGRATION; INTERPRETATION. The Loan Documents, including this
        Agreement, contain or expressly incorporate by reference the entire
        agreement of the parties with respect to the matters contemplated
        therein and supersede all prior negotiations or agreements, written or
        oral. The Loan Documents shall not be modified except by written
        instrument executed by all parties. Any reference to the Loan Documents
        includes any amendments, renewals or extensions now or hereafter
        approved by Lender in writing.

<PAGE>
10.     EXECUTION IN COUNTERPARTS. To facilitate execution, this document may be
        executed in as many counterparts as may be convenient or required. It
        shall not be necessary that the signature of, or on behalf of, each
        party, or that the signature of all persons required to bind any party,
        appear on each counterpart. All counterparts shall collectively
        constitute a single document. It shall not be necessary in making proof
        of this document to produce or account for more than a single
        counterpart containing the respective signatures of, or on behalf of,
        each of the parties hereto. Any signature page to any counterpart may be
        detached from such counterpart without impairing the legal effect of the
        signatures thereon and thereafter attached to another counterpart
        identical thereto except having attached to it additional signature
        pages.

IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be duly
executed as of the date first above written.

                                       "LENDER"

                                       WELLS FARGO BANK,
                                       NATIONAL ASSOCIATION

                                       By:
                                               --------------------------------
                                               Jay Rosenberg
                                       Its:    Vice President

                                       "BORROWER"

                                       COMMUNICATIONS & POWER INDUSTRIES
                                       HOLDING CORPORATION,
                                       a Delaware corporation

                                       By:
                                               --------------------------------

                                       Its:
                                               --------------------------------<PAGE>
                                                                 EXHIBIT 10.12.1

                                                                   Loan No. 1440

                              AMENDED AND RESTATED
                    PROMISSORY NOTE SECURED BY DEED OF TRUST

$17,750,000.00                                         San Francisco, California
                                                                    June 1, 2002

FOR VALUE RECEIVED, the undersigned COMMUNICATIONS & POWER INDUSTRIES HOLDING
CORPORATION, a Delaware corporation ("Borrower"), promise(s) to pay to the order
of WELLS FARGO BANK, NATIONAL ASSOCIATION ("Lender"), at the Disbursement and
Operations Center in El Segundo, California, or at such other place as may be
designated in writing by Lender, the principal sum of SEVENTEEN MILLION SEVEN
HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($17,750,000.00) or so much thereof as
may from time to time be owing hereunder by reason of advances by Lender to or
for the benefit or account of Borrower, with interest thereon, per annum, at one
or more of the Effective Rates calculated in accordance with the terms and
provisions of the Fixed Rate Agreement attached hereto as Exhibit A and a Fixed
Rate Notice described on Exhibit B attached hereto (based on a 360-day year and
charged on the basis of actual days elapsed). All sums owing hereunder are
payable in lawful money of the United States of America, in immediately
available funds.

Interest accrued on this note ("Note") shall be due and payable on the first day
of each month commencing July 1, 2002.

Borrower shall make one (1) principal payment to Lender in the amount of TWO
HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($250,000.00) on December 1, 2002;
provided, however, notwithstanding such payment, any unpaid principal balance
outstanding under this Note or any of the other loan documents on the Maturity
Date (defined below) of this Note shall be fully due and payable on the Maturity
Date. Any payments required hereunder shall be due and payable on the first day
of the month(s) in which it is due and shall be applied to the outstanding
principal balance of this Note. Any principal balance reductions may not be
reborrowed.

The outstanding principal balance of this Note, together with all accrued and
unpaid interest, shall be due and payable in full on June 1, 2003 ("Maturity
Date").

This Note is secured by, among other things, that certain Deed of Trust with
Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing
("Deed of Trust") dated as of December 22, 2000, executed by Borrower, as
trustor, to a trustee for the benefit of Lender.

If any interest payment required hereunder is not received by Lender (whether by
direct debit or otherwise) on or before the fifteenth (15th) calendar day of the
month in which it becomes due, Borrower shall pay, at Lender's option, a late or
collection charge equal to four percent (4%) of the amount of such unpaid
interest payment.

If: (a) Borrower shall fail to pay when due any sums payable hereunder; or (b) a
Default (as defined in the Deed of Trust) occurs under the Deed of Trust or
under any obligation secured thereby; or (c) the property which is subject to
the Deed of Trust, or any portion thereof or interest therein, is sold,
transferred, mortgaged, assigned, encumbered or leased, whether voluntarily or
involuntarily or by operation of law or otherwise, other than as expressly
permitted by Lender in writing; THEN Lender may, at its sole option, declare all
sums owing under this Note immediately due and payable; provided, however, that
if any document related to this Note provides for automatic acceleration of
payment of sums owing hereunder, all sums owing hereunder shall be automatically
due and payable in accordance with the terms of that document.

If any attorney is engaged by Lender to enforce or defend any provision of this
Note or the Deed of Trust, or as a consequence of any Default, with or without
the filing of any legal action or proceeding, then Borrower shall pay to Lender
immediately upon demand all attorneys' fees and all costs incurred by Lender in
connection therewith, together with interest thereon from the date of such
demand until paid at the rate of interest applicable to the principal balance
owing hereunder as if such unpaid attorneys' fees and costs had been added to
the principal.

No previous waiver and no failure or delay by Lender in acting with respect to
the terms of this Note or the Deed of Trust shall constitute a waiver of any
breach, default, or failure of condition under this Note, the Deed of Trust or
the obligations

                                  Page 1 of 7

<PAGE>
secured thereby. A waiver of any term of this Note, the Deed of Trust or of any
of the obligations secured thereby must be made in writing and shall be limited
to the express written terms of such waiver. In the event of any inconsistencies
between the terms of this Note and the terms of any other document related to
the loan evidenced by this Note, the terms of this Note shall prevail.

If this Note is executed by more than one person or entity as Borrower, the
obligations of each such person or entity shall be joint and several. No person
or entity shall be a mere accommodation maker, but each shall be primarily and
directly liable hereunder. Except as otherwise provided in any agreement
executed in connection with this Note, Borrower waives: presentment; demand;
notice of dishonor; notice of default or delinquency; notice of acceleration;
notice of protest and nonpayment; notice of costs, expenses or losses and
interest thereon; notice of late charges; and diligence in taking any action to
collect any sums owing under this Note or in proceeding against any of the
rights or interests in or to properties securing payment of this Note.

Time is of the essence with respect to every provision hereof. This Note shall
be construed and enforced in accordance with the laws of the State of
California, except to the extent that federal laws preempt the laws of the State
of California, and all persons and entities in any manner obligated under this
Note consent to the jurisdiction of any federal or state court within the State
of California having proper venue and also consent to service of process by any
means authorized by California or federal law.

All notices or other communications required or permitted to be given pursuant
to this Note shall be given to the Borrower or Lender at the address and in the
manner provided for in the Loan Agreement.

The Loan Documents contain or expressly incorporate by reference the entire
agreement of the parties with respect to the matters contemplated therein and
supersede all prior negotiations or agreements, written or oral. The Loan
Documents shall not be modified except by written instrument executed by all
parties. Any reference to the Loan Documents includes any amendments, renewals
or extensions now or hereafter approved by Lender in writing.

Exhibits A and B are attached hereto and incorporated herein by reference.

                                             "BORROWER"

                                             COMMUNICATIONS & POWER INDUSTRIES
                                             HOLDING CORPORATION
                                             a Delaware corporation

                                             By:
                                                  ------------------------------
                                             Its:
                                                  ------------------------------

                                  Page 2 of 7

<PAGE>
                                                                       EXHIBIT A
                                                                   Loan No. 1440

                              FIXED RATE AGREEMENT

Exhibit A to Promissory Note Secured by Deed of Trust ("Note"), dated June 1,
2002, made by COMMUNICATIONS & POWER INDUSTRIES HOLDING CORPORATION, a Delaware
corporation, as Borrower, to the order of WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Lender.

                                 R E C I T A L S

Borrower has requested and Lender has agreed to provide a fixed rate option as a
basis for calculating the effective rate of interest on amounts owing under this
Note. Borrower acknowledges the following: (i) it understands the process of
exercising the fixed rate option as provided herein; (ii) amounts owing under
this Note may bear interest at different rates and for different time periods;
and (iii) absent the terms and conditions hereof, it would be extremely
difficult to calculate Lender's additional costs, expenses, and damages in the
event of a Default or prepayment by Borrower hereunder. Given the above,
Borrower agrees that the provisions herein (including, without limitation, the
Fixed Rate Price Adjustment defined below) provide for a reasonable and fair
method for Lender to recover its additional costs, expenses and damages in the
event of a Default or prepayment by Borrower.

1.      RATES AND TERMS DEFINED. Various rates and terms not otherwise defined
        herein are defined and described as follows:

                "Administration Fee" shall be FIVE HUNDRED AND NO/100THS DOLLARS
                ($500.00) for each Fixed Rate Period and Fixed Rate Option.

                "Alternate Rate" is a rate of interest per annum five percent
                (5%) in excess of the applicable Variable Rate in effect from
                time to time.

                "Applicable LIBO Rate" is the rate of interest, rounded upward
                to the nearest whole multiple of one-hundredth of one percent
                (.01%), equal to the sum of: (a) four and one quarter percent
                (4.25%) plus (b) the LIBO Rate, which rate is divided by one
                (1.00) minus the Reserve Percentage:

                        Applicable LIBO Rate = 4.25% +        LIBO Rate
                                                       ------------------------
                                                       (1 - Reserve Percentage)

                "Business Day(s)" means a day of the week (but not a Saturday,
                Sunday or holiday) on which the offices of Lender are open to
                the public for carrying on substantially all of Lender's
                business functions.

                "Fixed Rate" is the Applicable LIBO Rate as accepted by Borrower
                as an Effective Rate for a particular Fixed Rate Period and
                Fixed Rate Portion.

                "Fixed Rate Commencement Date" means the date upon which the
                Fixed Rate Period commences.

                "Fixed Rate Notice" is a written notice in the form shown on
                Exhibit B attached to this Note, which confirms the Fixed Rate
                for a particular Fixed Rate Period, and the Fixed Rate Portion.

                "Fixed Rate Period" is the period or periods of: a) one month,
                b) two months, c) three months, d) six months; or e) any other
                period of not more than one month which ends at the Maturity
                Date, which periods are selected by Borrower and confirmed in
                the Fixed Rate Notice; provided that no Fixed Rate Period shall
                extend beyond the Maturity Date.

                "Fixed Rate Portion" is the entire unpaid principal balance of
                this Note in increments of not less than $1,000,000.00.

                                  Page 3 of 7

<PAGE>
                "LIBO Rate" is the rate of interest, rounded upward to the
                nearest whole multiple of one-sixteenth of one percent (.0625%),
                quoted by Lender as the London Inter-Bank Offered Rate for
                deposits in U.S. Dollars at approximately 9:00 a.m. California
                time, for a Fixed Rate Commencement Date or a Price Adjustment
                Date, as appropriate, for purposes of calculating effective
                rates of interest for loans or obligations making reference
                thereto for an amount approximately equal to a Fixed Rate
                Portion and for a period of time approximately equal to a Fixed
                Rate Period or the time remaining in a Fixed Rate Period after a
                Price Adjustment Date, as appropriate.

                "Loan Agreement" is that certain Loan Agreement dated as of
                December 22, 2000 between Borrower and Lender.

                "Loan Documents" are the documents defined as such in the Loan
                Agreement.

                "Prime Rate" is a base rate of interest which Lender establishes
                from time to time and which serves as the basis upon which
                effective rates of interest are calculated for those loans
                making reference thereto. Any change in an Effective Rate due to
                a change in the Prime Rate shall become effective on the day
                each such change is announced within Lender.

                "Regulatory Costs" are, collectively, future, supplemental,
                emergency or other changes in Reserve Percentages, assessment
                rates imposed by the FDIC, or similar requirements or costs
                imposed by any domestic or foreign governmental authority and
                related in any manner to a Fixed Rate.

                "Reserve Percentage" is at any time the percentage announced
                within Lender as the reserve percentage under Regulation D for
                loans and obligations making reference to an Applicable LIBO
                Rate for a Fixed Rate Period or time remaining in a Fixed Rate
                Period on a Price Adjustment Date, as appropriate. The Reserve
                Percentage shall be based on Regulation D or other regulations
                from time to time in effect concerning reserves for Eurocurrency
                Liabilities as defined in Regulation D from related institutions
                as though Lender were in a net borrowing position, as
                promulgated by the Board of Governors of the Federal Reserve
                System, or its successor.

                "Taxes" are, collectively, all withholdings, interest
                equalization taxes, stamp taxes or other taxes (except income
                and franchise taxes) imposed by any domestic or foreign
                governmental authority and related in any manner to a Fixed
                Rate.

                "Variable Rate" is a floating rate of interest per annum one and
                one half percent (1.50%) in excess of the Prime Rate.

2.      EFFECTIVE RATE. The "Effective Rate" upon which interest shall be
        calculated for this Note shall be one or more of the following:

        2.1     Provided no Default, breach, or failure of condition exists
                under the Loan Agreement or any of the Loan Documents described
                therein (this Note is one of the Loan Documents):

                (a)     The Effective Rate accruing on the Fixed Rate Portions
                        for the Fixed Rate Period thereof shall be the Fixed
                        Rate selected by Borrower and set in accordance with the
                        provisions hereof.

        2.2     During such time as a Default, breach or failure of condition
                exists under the Loan Agreement or any of the Loan Documents; or
                from and after the date on which all sums owing under this Note
                become due and payable by acceleration or otherwise; or from and
                after the date on which the property encumbered by the Deed of
                Trust or any portion thereof or interest therein, is sold,
                transferred, mortgaged, assigned, or encumbered, whether
                voluntarily or involuntarily, or by operation of law or
                otherwise, without Lender's prior written consent (whether or
                not the sums owing under this Note become due and payable by
                acceleration); or from and after the Maturity Date, then at the
                option of Lender, the interest rate applicable to the then
                outstanding principal balance of this Note shall be the
                Alternate Rate.

                                  Page 4 of 7

<PAGE>
3.      SELECTION OF FIXED RATE. Provided no Default, breach or failure of
        condition exists under the Loan Documents, or would exist with passage
        of time or notice or both, Borrower, at its option and upon satisfaction
        of the conditions set forth herein, may request a Fixed Rate as the
        Effective Rate for calculating interest on the portion of the unpaid
        principal balance and for the period selected in accordance with and
        subject to the following procedures and conditions:

        3.1     Borrower shall deliver to the Disbursement and Operations
                Center, 2120 East Park Place, Suite 100, El Segundo, California,
                90245, with a copy to: Lender, 555 Montgomery Street, 16th
                Floor, San Francisco, California, 94111, Attention: Jay
                Rosenberg, or such other addresses as Lender shall designate, an
                original or facsimile Fixed Rate Notice no later than 9:00 A.M.
                (California time), and not less than three (3) nor more than
                five (5) Business Days prior to the proposed Fixed Rate Period
                for each Fixed Rate Portion. Any Fixed Rate Notice pursuant to
                this Section 3 is irrevocable.

                Lender is authorized to rely upon the telephonic request and
                acceptance of Joey Cory as Borrower's duly authorized agents, or
                such additional authorized agents as Borrower shall designate in
                writing to Lender. Borrower's telephonic notices, requests and
                acceptances shall be directed to such officers of Lender as
                Lender may from time to time designate.

        3.2     Borrower may elect to convert a matured Fixed Rate Portion into
                a new Fixed Rate Portion, provided, however, that the aggregate
                amount of the advance being converted into or continued as a
                Fixed Rate Portion shall, in the aggregate, be not less than
                $1,000,000.00. The conversion of a matured Fixed Rate Portion to
                a new Fixed Rate Portion shall occur on the last Business Day of
                the Fixed Rate Period relating to such Fixed Rate Portion. Each
                Fixed Rate Notice shall specify (1) the amount of the Fixed Rate
                Portion, (2) the Fixed Rate Period, and (3) the Fixed Rate
                Commencement Date.

        3.3     Upon receipt of a Fixed Rate Notice in the proper form
                requesting a Fixed Rate Portion advance under Sections 3.1 and
                3.2 above, Lender shall determine the Fixed Rate applicable to
                the Fixed Rate Period for such Fixed Rate Portion two (2)
                Business Days prior to the beginning of such Fixed Rate Period.
                Each determination by Lender of the Fixed Rate shall be
                conclusive and binding upon the parties hereto in the absence of
                manifest error. Lender shall deliver to Borrower (by facsimile)
                an acknowledgment of receipt and confirmation of the Fixed Rate
                Notice; provided, however, that failure to provide such
                acknowledgment of receipt and confirmation of the Fixed Rate
                Notice to Borrower shall not affect the validity of such rate.

        3.4     If Borrower does not make a timely election to convert all or a
                portion of a matured Fixed Rate Portion into a new Fixed Rate
                Portion in accordance with Section 3.2 above, such Fixed Rate
                Portion shall be automatically converted back to a one month
                Fixed Rate Period upon the expiration of the Fixed Rate Period
                applicable to such Fixed Rate Portion.

4.      ADMINISTRATION FEE. Upon Borrower's acceptance of a Fixed Rate, Borrower
        shall pay to Lender an administration fee of Five Hundred Dollars
        ($500.00) for each Fixed Rate Portion.

5.      FIXED RATE NOTICE. Borrower's selection of a Fixed Rate shall be
        delivered to Lender in the form of the Fixed Rate Notice shown on
        Exhibit B attached to this Note. Lender shall confirm and deliver to
        Borrower acceptance of such Fixed Rate Notice via facsimile. Lender's
        failure to deliver the Fixed Rate Notice shall not release Borrower from
        Borrower's obligation to pay interest at the Effective Rate pursuant to
        the terms hereof.

6.      LIMITATIONS ON RIGHT TO FIX RATE. Borrower may request and accept up to
        six (6) Fixed Rate quotations at any one time.

7.      TAXES, REGULATORY COSTS AND RESERVE PERCENTAGES. Upon Lender's demand,
        Borrower shall pay to Lender, in addition to all other amounts which may
        be, or become, due and payable under this Note and Loan Documents, any
        and all Taxes and Regulatory Costs, to the extent they are not
        internalized by calculation of a Fixed Rate. Further, at Lender's
        option, the Fixed Rate shall be automatically adjusted by adjusting the
        Reserve Percentage, as determined by Lender in its prudent banking
        judgment, from the date of imposition (or subsequent date

                                  Page 5 of 7

<PAGE>
        selected by Lender) of any such Regulatory Costs. Lender shall give
        Borrower notice of any Taxes and Regulatory Costs as soon as practicable
        after their occurrence, but Borrower shall be liable for any Taxes and
        Regulatory Costs regardless of whether or when notice is so given.

8.      FIXED RATE PRICE ADJUSTMENT. Borrower acknowledges that prepayment or
        acceleration of a Fixed Rate Portion during a Fixed Rate Period shall
        result in Lender's incurring additional costs, expenses and/or
        liabilities and that it is extremely difficult and impractical to
        ascertain the extent of such costs, expenses and/or liabilities.
        Therefore, on the date a Fixed Rate Portion is prepaid or the date all
        sums payable hereunder become due and payable, by acceleration or
        otherwise ("Price Adjustment Date"), Borrower will pay Lender (in
        addition to all other sums then owing to Lender) an amount ("Fixed Rate
        Price Adjustment") equal to the then present value of (a) the amount of
        interest that would have accrued on the Fixed Rate Portion for the
        remainder of the Fixed Rate Period at the Fixed Rate set on the Fixed
        Rate Commencement Date, less (b) the amount of interest that would
        accrue on the same Fixed Rate Portion for the same period if the Fixed
        Rate were set on the Price Adjustment Date at the Applicable LIBO Rate
        in effect on the Price Adjustment Date. The present value shall be
        calculated by using as a discount rate the LIBO Rate quoted on the Price
        Adjustment Date.

        By initialing this provision where indicated below, Borrower confirms
        that Lender's agreement to make the loan evidenced by this Note at the
        interest rates and on the other terms set forth herein and in the other
        Loan Documents constitutes adequate and valuable consideration, given
        individual weight by Borrower, for this agreement.

                        BORROWER'S INITIALS:
                                             ------------

9.      PURCHASE, SALE AND MATCHING OF FUNDS. Borrower understands, agrees and
        acknowledges the following: (a) Lender has no obligation to purchase,
        sell and/or match funds in connection with the use of a LIBO Rate as a
        basis for calculating a Fixed Rate or Fixed Rate Price Adjustment; (b) a
        LIBO Rate is used merely as a reference in determining a Fixed Rate and
        Fixed Rate Price Adjustment; and (c) Borrower has accepted a LIBO Rate
        as a reasonable and fair basis for calculating a Fixed Rate and a Fixed
        Rate Price Adjustment. Borrower further agrees to pay the Fixed Rate
        Price Adjustment, Taxes and Regulatory Costs, if any, whether or not
        Lender elects to purchase, sell and/or match funds.

10.     MISCELLANEOUS. As used in this Exhibit, the plural shall mean the
        singular and the singular shall mean the plural as the context requires.
        Addresses for the Fixed Rate Notice shall be the same as those for
        notices under the Loan Agreement executed in connection with this Note.

This Agreement is executed concurrently with and as part of this Note referred
to and described first above.

                                           "BORROWER"

                                           COMMUNICATIONS & POWER INDUSTRIES
                                           HOLDING CORPORATION
                                           a Delaware corporation

                                           By:
                                                --------------------------------

                                           Its:
                                                --------------------------------
                                           ------------

                                  Page 6 of 7

<PAGE>
                                                                       EXHIBIT B

                                FIXED RATE NOTICE

TODAY'S DATE:                                LOAN MATURITY DATE: June 1, 2003
             -----------------------                            ----------------
TO: WELLS FARGO BANK, N.A.                   LOAN ADMINISTRATOR: Robin Dixon
    DISBURSEMENT AND OPERATIONS CENTER                           ---------------
    FAX # (310) 615-1014 or (310) 615-1016   RELATIONSHIP MANAGER: Jay Rosenberg
    ATTENTION: RATE OPTION DESK                                   --------------

================================================================================
                     BORROWER INTEREST RATE OPTION REQUEST
       Rate Quote Line (888) 293-2362 x:472 Use One Form Per Transaction

LOAN #: 1440
        ----
BORROWER NAME: Communications & Power Industries Holding Corporation
               -----------------------------------------------------

RATE SET DATE:               FIXED RATE COMMENCEMENT DATE:                (1350)
              ------------                                ---------------

FIXED RATE PERIOD (TERM):      (i.e.  1, 2, 3 months , etc. as allowed per Note)
                         -----

INDEX: LIBO    RATE:       %  +  SPREAD ABOVE LIBO  =       #'s%          (1350)
      ------        -------      -----------------     ---------------
                     Quote            Spread           Applicable Rate

FIXED RATE PORTION EXPIRING ON:                      $
                               ------------------    -------------------

1. AMOUNT ROLLING OVER        $        FROM OBLGN#:
                              --------              ------

2. ADD: AMT TRANSFERRED FROM
   VARIABLE RATE PORTION      $        FROM OBLGN#:        TO OBLGN#:
                              --------              ------            --------
                                                    (5522)            (5020)
3. ADD: AMT TRANSFERRED FROM
   OTHER FIXED RATE PORTION   $        FROM OBLGN#:        TO OBLGN#:
                              --------              ------            --------
                                                    (5522)            (5020)
   ADD: AMT TRANSFERRED FROM
   OTHER FIXED RATE PORTION   $        FROM OBLGN#:        TO OBLGN#:
                              --------              ------            --------
                                                    (5522)            (5020)
4. LESS: AMT TRANSFERRED TO
   VARIABLE RATE PORTION      $        FROM OBLGN#:        TO OBLGN#:
                              --------              ------            --------
                                                    (5522)            (5020)
   TOTAL FIXED RATE PORTION:  $
                              ------------------------------------------------

ADMINISTRATION  FEE DUE:      $500.00
                              ---------------
CHARGE FEES TO DDA#:          YES, charge DDA     DDA#:
                     -------                           --------------------
                              NO, to be remitted  PLEASE REMIT FEE TO:
                     -------                      2120 E. PARK PLACE, SUITE 100
                                                  EL SEGUNDO, CA  90245

Borrower confirms, represents and warrants to Lender, (a) that this selection of
a Fixed Rate is subject to the terms and conditions of the Note, Fixed Rate
Agreement and Loan Documents (as applicable), and (b) that terms, words and
phrases used but not defined in this Notice have the meanings attributed thereto
in the Note, Fixed Rate Agreement and Loan Documents (as applicable), and (c)
that no breach, failure of condition, or Default has occurred or exists, or
would exist after notice or passage of time or both, under the Note or the Loan
Documents.

REQUESTED BY (as allowed per documents):            TELEPHONE #:(   )
                                        -----------              --- -----------
PRINT NAME:                                               FAX #:(   )
            ---------------------------------------              --- -----------

================================================================================
           WELLS FARGO BANK ACKNOWLEDGMENT OF RECEIPT AND CONFIRMATION

FIXED RATE EXPIRATION DATE:                   (2301)
                             ----------------
REQUEST VERIFIED BY:                                DATE:
                     ------------------------            ----------------------
REQUEST APPROVED BY:                                DATE:
                     ------------------------            ----------------------
CONFIRMATION FAXED TO CUSTOMER BY:                  DATE:         TIME:
                                   ----------            --------      --------

================================================================================
                      WELLS FARGO BANK OPERATIONS USE ONLY

TRACKING #:         LOAN AU:           LOAN SU:          OBLIGOR #:
           -------          ---------          --------            ----------

CHARGE CODE: 100     BASIS:           EARN TYPE:   0     BAL TYPE:  000   (1350)
            -----          ---------            -------            -----

SPECIAL PRODUCT TYPE CODE: (If change required)                           (2305)
                                               -------------------------

TDR: NO    YES   (Fax to loan acctg) UPDATE BILLING SCHEDULE: NO    YES   (1370)
       ---    ---                                               ---    ---

DATA ENTRY COMPLETED BY:                    DATE:             BATCH ID:
                        -------------------      ------------          --------
DATA ENTRY AUDITED BY:                                            DATE:
                        -------------------------------------          --------

                                  Page 7 of 7

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