Document:

ex10_1.htm

    
      

    

    Exhibit
      10.1

     

    
      BUSINESS
        LOAN AGREEMENT

       

      
        	
                Principal

              	
                Loan
                  Date

              	
                Maturity

              	
                Loan
                  No

              	
                Call/Coll

              	
                Account

              	
                Officer

              	
                Initials

              
	
                $25,000,000.00

              	
                08-31-2007

              	
                08/31/2009

              	
                9329000055-1

              	 	
                9329000055-1

              	
                22163

              	
                JL

              
	
                References
                  in the shaded area are for the Lender’s use only and do not limit the
                  applicability of this document to any particular loan or
                  item.  Any item above containing “***” has been omitted due to
                  text length limitations

              

      

      

      
        	
                Borrower:

              	
                AeroVironment
                  Inc.

              	
                Lender:

              	
                California
                  Bank & Trust

              
	 	
                181
                  W. Huntington Drive, Suite 202

              	 	
                Los
                  Angeles Commercial Banking

              
	 	
                Monrovia,
                  CA  91016

              	 	
                550
                  South Hope Street, Suite 300

              
	 	 	 	
                Los
                  Angeles,
                  CA  90071

              

      

       

      THIS
        BUSINESS LOAN AGREEMENT dated August 31, 2007, is made and executed between
        AeroVironment, Inc. (“Borrower”) and California Bank & Trust (‘Lender”) on
        the following terms and conditions. Borrower has received prior commercial
        loans
        from Lender or has applied to Lender for a commercial loan or loans or other
        financial accommodations, including those which may be described on any exhibit
        or schedule attached to this Agreement (“Loan’). Borrower understands and agrees
        that: (A) in granting, renewing, or extending any Loan. Lender is relying
        upon
        Borrower’s representations, warranties, and agreements as set forth in this
        Agreement; (B) the granting, renewing, or extending of any Loan by Lender
        at all
        times shall be subject to Lenders sole judgment and discretion; and (C) all
        such
        Loans shall be and remain subject to the terms and conditions of this
        Agreement.

       

      TERM.
        This Agreement shall be effective as of August 31, 2007, and shall continue
        in
        full force and effect until such time as all of Borrower’s Loans in favor of
        Lender have been paid in full, including principal, interest, costs, expenses,
        attorneys’ fees, and other fees and charges, or until such time as the parties
        may agree in writing to terminate this Agreement.

       

      ADVANCE
        AUTHORITY. The following persons currently are authorized to request
        advances and authorize payments under the line of credit until Lender receives
        from Borrower, at Lender’s address shown above, written notice of revocation of
        their authority: Timothy Conver, President/CEO of AeroVironment, Inc.;
        Stephen C. Wright. CFO/VP of Finance/Sec. of AeroVironment, Inc.; and Suzanne
        Gilman, Controller.

       

      CONDITIONS
        PRECEDENT TO EACH ADVANCE. Lender’s obligation to make the initial
        Advance and each subsequent Advance under this Agreement shall be subject
        to the
        fulfillment to Lender’s satisfaction of all of the conditions set forth in this
        Agreement and in the Related Documents.

       

      Loan
        Documents. Borrower shall provide to Lender the following documents for
        the Loan: (1) the Note; (2) Security Agreements granting to Lender security
        interests in the Collateral; (3) financing statements and all other documents
        perfecting Lender’s Security Interests; (4) evidence of insurance as required
        below; (5) together with all such Related Documents as Lender may require
        for
        the Loan; all in form and substance satisfactory to Lender and Lender’s
        counsel.

       

      Borrower’s
        Authorization. Borrower shall have provided in form and substance
        satisfactory to Lender properly certified resolutions, duly authorizing the
        execution and delivery of this Agreement, the Note and the Related Documents.
        In
        addition, Borrower shall have provided such other resolutions, authorizations,
        documents and instruments as Lender or its counsel, may require.

       

      Payment
        of Fees and Expenses. Borrower shall have paid to Lender all fees,
        charges, and other expenses which are then due and payable as specified in
        this
        Agreement or any Related Document.

       

      Representations
        and Warranties. The representations and warranties set forth in this
        Agreement, in the Related Documents, and in any document or certificate
        delivered to Lender under this Agreement are true and correct.

       

      No
        Event of Default. There shall not exist at the time of any Advance a
        condition which would constitute an Event of Default under this Agreement
        or
        under any Related Document.

       

      REPRESENTATIONS
        AND WARRANTIES. Borrower represents and warrants to Lender, as of the
        date of this Agreement, as of the date of each disbursement of loan proceeds,
        as
        of the date of any renewal, extension or modification of any Loan, and at
        all
        times any indebtedness exists:

       

      Organization.
        Borrower is a corporation for profit which is, and at all times shall be,
        duly
        organized, validly existing, and in good standing under and by virtue of
        the
        laws of the State of Delaware. Borrower is duly authorized to transact business
        in all other states in which Borrower is doing business, having obtained
        all
        necessary filings, governmental licenses and approvals for each state in
        which
        Borrower is doing business. Specifically, Borrower is. and at all times shall
        be, duly qualified as a foreign corporation in all states in which the failure
        to so qualify would have a material adverse effect on its business or financial
        condition. Borrower has the full power and authority to own its properties
        and
        to transact the business in which it is presently engaged or presently proposes
        to engage. Borrower maintains an office at 2711 Centerville Road, Suite 400,
        Wilmington, DE 19808. Unless Borrower has designated otherwise in writing,
        the
        principal office is the office at which Borrower keeps its books and records
        including its records concerning the Collateral. Borrower will notify Lender
        prior to any change in the location of Borrower’s state of organization or any
        change in Borrower’s name. Borrower shall do all things necessary to preserve
        and to keep in full force and effect its existence, rights and privileges,
        and
        shall comply with all regulations, rules, ordinances, statutes, orders and
        decrees of any governmental or quasi-governmental authority or court applicable
        to Borrower and Borrower’s business activities.

       

      Assumed
        Business Names. Borrower has filed or recorded all documents or filings
        required by law relating to all assumed business names used by Borrower.
        Excluding the name of Borrower, the following is a complete list of all assumed
        business names under which Borrower does business:
None.

       

      Authorization.
        Borrower’s execution, delivery, and performance of this Agreement and all the
        Related Documents have been duly authorized by all necessary action by Borrower
        and do not conflict with, result in a violation of, or constitute a default
        under (1) any provision of (a) Borrower’s articles of incorporation or
        organization, or bylaws, or (b) any agreement or other instrument binding
        upon
        Borrower or (2) any law, governmental regulation, court decree, or order
        applicable to Borrower or to Borrower’s properties.

       

      Financial
        Information. Each of Borrower’s financial statements supplied to Lender
        truly and completely disclosed Borrower’s financial condition as of the date of
        the statement, and there has been no material adverse change in Borrowers
        financial condition subsequent to the date of the most recent financial
        statement supplied to Lender. Borrower has no material contingent obligations
        except as disclosed in such financial statements.

       

      Legal
        Effect. This Agreement constitutes, and any instrument or agreement
        Borrower is required to give under this Agreement when delivered will constitute
        legal, valid, and binding obligations of Borrower enforceable against Borrower
        in accordance with their respective terms.

       

      Properties.
        Except as contemplated by this Agreement or as previously disclosed in
        Borrower’s financial statements or in writing to Lender and as accepted by
        Lender, and except for property tax liens for taxes not presently due and
        payable, Borrower owns and has good title to all of Borrowers properties
        free
        and clear of all Security Interests, and has not executed any security documents
        or financing statements relating to such properties. All of Borrower’s
        properties are titled in Borrower’s legal name, and Borrower has not used or
        filed a financing statement under any other name for at least the last five
        (5)
        years.

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      BUSINESS
        LOAN AGREEMENT

       

      (Continued)

       

      
        
          	Loan
                  No. 0329000055-1 	
                   Page
                    2

                

        

      

       

      Hazardous
        Substances. Except as disclosed to and acknowledged by Lender in
        writing, Borrower represents and warrants that: (1) During the period of
        Borrower’s ownership of the Collateral, there has been no use, generation,
        manufacture, storage, treatment, disposal, release or threatened release
        of any
        Hazardous Substance by any person on, under, about or from any of the
        Collateral. (2) Borrower has no knowledge of, or reason to believe that there
        has been (a) any breach or violation of any Environmental Laws; (b) any use,
        generation, manufacture, storage, treatment, disposal, release or threatened
        release of any Hazardous Substance on, under, about or from the Collateral
        by
        any prior owners or occupants of any of the Collateral; or (c) any actual
        or
        threatened litigation or claims of any kind by any person relating to such
        matters. (3) Neither Borrower nor any tenant, contractor, agent or other
        authorized user of any of the Collateral shall use, generate, manufacture,
        store, treat, dispose of or release any Hazardous Substance on, under, about
        or
        from any of the Collateral; and any such activity shall be conducted in
        compliance with all applicable federal, state, and local laws, regulations,
        and
        ordinances, including without limitation all Environmental Laws. Borrower
        authorizes Lender and its agents to enter upon the Collateral to make such
        inspections and tests as Lender may deem appropriate to determine compliance
        of
        the Collateral with this section of the Agreement. Any inspections or tests
        made
        by Lender shall be at Borrower’s expense and for Lender’s purposes only and
        shall not be construed to create any responsibility or liability on the part
        of
        Lender to Borrower or to any other person. The representations and warranties
        contained herein are based on Borrower’s due diligence in investigating the
        Collateral for hazardous waste and Hazardous Substances. Borrower hereby
        (1)
        releases and waives any future claims against Lender for indemnity or
        contribution in the event Borrower becomes liable for cleanup or other costs
        under any such laws, and (2) agrees to indemnify, defend, and hold harmless
        Lender against any and all claims, losses, liabilities, damages, penalties,
        and
        expenses which Lender may directly or indirectly sustain or suffer resulting
        from a breach of this section of the Agreement or as a consequence of any
        use,
        generation, manufacture, storage, disposal, release or threatened release
        of a
        hazardous waste or substance on the Collateral. The provisions of this section
        of the Agreement, including the obligation to indemnify and defend, shall
        survive the payment of the Indebtedness and the termination, expiration or
        satisfaction of this Agreement and shall not be affected by Lender’s acquisition
        of any interest in any of the Collateral, whether by foreclosure or
        otherwise.

       

      Litigation
        and Claims. No litigation, claim, investigation, administrative
        proceeding or similar action (including those for unpaid taxes) against Borrower
        is pending or threatened, and no other event has occurred which may materially
        adversely affect Borrower’s financial condition or properties, other than
        litigation, claims, or other events, if any, that have been disclosed to
        and
        acknowledged by Lender in writing.

       

      Taxes.
        To the best of Borrower’s knowledge, all of Borrower’s tax returns and reports
        that are or were required to be filed, have been filed, and all taxes,
        assessments and other governmental charges have been paid in full, except
        those
        presently being or to be contested by Borrower in good faith in the ordinary
        course of business and for which adequate reserves have been
        provided.

       

      Lien
        Priority. Unless otherwise previously disclosed to Lender in writing,
        Borrower has not entered into or granted any Security Agreements, or permitted
        the filing or attachment of any Security Interests on or affecting any of
        the
        Collateral directly or indirectly securing repayment of Borrower’s Loan and
        Note, that would be prior or that may in any way be superior to Lender’s
        Security Interests and rights in and to such Collateral.

       

      Binding
        Effect. This Agreement, the Note, all Security Agreements (if any), and
        all Related Documents are binding upon the signers thereof, as well as upon
        their successors, representatives and assigns, and are legally enforceable
        in
        accordance with their respective terms.

       

      AFFIRMATIVE
        COVENANTS. Borrower covenants and agrees with Lender that, so long as
        this Agreement remains in effect, Borrower will:

       

      Notices
        of Claims and Litigation. Promptly inform Lender in writing of (1) all
        material adverse changes in Borrower’s financial condition, and (2) all existing
        and all threatened litigation, claims, investigations, administrative
        proceedings or similar actions affecting Borrower or any Guarantor which
        could
        materially affect the financial condition of Borrower or the financial condition
        of any Guarantor.

       

      Financial
        Records. Maintain its books and records in accordance with GAAP,
        applied on a consistent basis, and permit Lender to examine and audit Borrower’s
        books and records at all reasonable times.

       

      Financial
        Statements. Furnish Lender with the following:

       

      Annual
        Statements. As soon as available, but in no event later than ninety
        (90) days after the end of each fiscal year. Borrower’s balance sheet and income
        statement for the year ended, audited by a certified public accountant
        satisfactory to Lender.

       

      Interim
        Statements. As soon as available, but in no event later than forty-five
        (45) days after the end of each fiscal quarter, Borrower’s balance sheet and
        profit and loss statement for the period ended, prepared by
        Borrower.

       

      All
        financial reports required to be provided under this Agreement shall be prepared
        in accordance with GAAP, applied on a consistent basis, and certified by
        Borrower as being true and correct.

       

      Additional
        Information. Furnish such additional information and statements, as
        Lender may request from time to time. Financial Covenants and Ratios. Comply
        with the following covenants and ratios:

       

      Working
        Capital Requirements. Borrower shall comply with the following working
        capital ratio requirements:

       

      Quick
        Ratio. Maintain a Quick Ratio in excess of 1.000 to
        1.000. The term ‘Quick Ratio” means Borrower’s Cash &
Equivalent  plus Borrower’s net Trade Receivables divided by
        Borrower’s total Current Liabilities. This liquidity ratio will be evaluated as
        of quarter-end.

       

      Tangible
        Net Worth Requirements. Borrower shall comply with the following net
        worth ratio requirements:

       

      Debt
        / Worth Ratio. Maintain a ratio of Debt / Worth not in excess of
2.250 to 1.000. The ratio “Debt / Worth” means Borrower’s Total
        Liabilities divided by Borrower’s Tangible Net Worth. This leverage ratio will
        be evaluated as of quarter-end.

       

      Other
        Requirements.

       

      Debt
        Service Coverage Ratio. Maintain a minimum Debt Service Coverage ratio
        of 2.50 to 1.00, to be measured quarterly on a rolling 4-quarter basis. Debt
        Service Coverage Ratio is defined as “Earning Before Interest Expenses, Taxes,
        Depreciation and Amortization Expenses divided by Current Portion of Long-Term
        Debt plus Interest Expense.

       

      Additional
        Provision. Borrower covenants and agrees with Lender that,
        notwithstanding anything herein to the contrary, while this Agreement is
        in
        effect, (a) Borrower shall be allowed to issue dividends of up to 50% of
        net
        annual earnings provided that such dividends does not result in the violation
        of
        any covenant (other than the conveanant against eh payment of dividend set
        forth
        in subsection (3) under “NEGATIVE COVENANCTS – Continuity of Operations”); and
        (b) Borrower shall be allowed to acquire or invest in other entities in an
        amount not to exceed $15,000,000 provided that such acquisition/Investment
        does
        not result in the violation of any covenant (other than the convenants against
        acquisitions and investments set forth in subsection (2) under “NEGATIVE
        COVENANCES – continuity of Operations” and subsection (1) and (2) under
“NEGATIVE COVENANTS – Loans, Acquisitions and Guaranties”).

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      BUSINESS
        LOAN AGREEMENT

       

      (Continued)

       

      
        
          
            	Loan
                    No. 0329000055-1 	
                     Page
                      3

                  

          

        

      Except
        as
        provided above, all computations made to determine compliance with the
        requirements contained in this paragraph shall be made in accordance with
        generally accepted accounting principles, applied on a consistent basis,
        and
        certified by Borrower as being true and correct.

       

      Insurance.
        Maintain fire and other risk insurance, public liability insurance, and such
        other insurance as Lender may require with respect to Borrower’s properties and
        operations, in form, amounts, coverages and with insurance companies acceptable
        to Lender. Borrower, upon request of Lender, will deliver to Lender from
        time to
        time the policies or certificates of insurance in form satisfactory to Lender,
        including stipulations that coverages will not be cancelled or diminished
        without at least ten (10) days prior written notice to Lender. Each insurance
        policy also shall include an endorsement providing that coverage in favor
        of
        Lender will not be impaired in any way by any act, omission or default of
        Borrower or any other person. In connection with all policies, covering assets
        in which Lender holds or is offered a security interest for the Loans, Borrower
        will provide Lender with such lender’s loss payable or other endorsements as
        Lender may require.

       

      Insurance
        Reports. Furnish to Lender, upon request of Lender, reports on each
        existing insurance policy showing such information as Lender may reasonably
        request, including without limitation the following: (1) the name of the
        insurer; (2) the risks insured; (3) the amount of the policy; (4) the properties
        insured; (5) the then current property values on the basis of which insurance
        has been obtained, and the manner of determining those values; and (6) the
        expiration date of the policy. In addition, upon request of Lender (however
        not
        more often than annually), Borrower will have an independent appraiser
        satisfactory to Lender determine, as applicable, the actual cash value or
        replacement cost of any Collateral. The cost of such appraisal shall be paid
        by
        Borrower.

       

      Other
        Agreements. Comply with all terms and conditions of all other
        agreements, whether now or hereafter existing, between Borrower and any other
        party and notify Lender immediately in writing of any default in connection
        with
        any other such agreements.

       

      Loan
        Proceeds. Use all Loan proceeds solely for Borrower’s business operations,
        unless specifically consented to the contrary by Lender in writing.

       

      Taxes.
        Charges and Liens. Pay and discharge when due all of its indebtedness
        and obligations, including without limitation all assessments, taxes,
        governmental charges, levies and liens, of every kind and nature, imposed
        upon
        Borrower or its properties, income, or profits, prior to the date on which
        penalties would attach, and all lawful claims that, if unpaid, might become
        a
        lien or charge upon any of Borrower’s properties, income, or
        profits.

       

      Performance.
        Perform and comply, in a timely manner, with all terms, conditions, and
        provisions set forth in this Agreement, in the Related Documents, and in
        all
        other instruments and agreements between Borrower and Lender. Borrower shall
        notify Lender immediately in writing of any default in connection with any
        agreement.

       

      Operations.
        Maintain executive and management personnel with substantially the same
        qualifications and experience as the present executive and management personnel;
        provide written notice to Lender of any change in executive and management
        personnel; conduct its business affairs in a reasonable and prudent
        manner.

       

      Environmental
        Studies. Promptly conduct and complete, at Borrower’s expense, all such
        investigations, studies, samplings and testings as may be requested by Lender
        or
        any governmental authority relative to any substance, or any waste or by-product
        of any substance defined as toxic or a hazardous substance under applicable
        federal, state, or local law, rule, regulation, order or directive, at or
        affecting any property or any facility owned, leased or used by
        Borrower.

       

      Compliance
        with Governmental Requirements. Comply with all laws, ordinances, and
        regulations, now or hereafter in effect, of all governmental authorities
        applicable to the conduct of Borrower’s properties, businesses and operations,
        and to the use or occupancy of the Collateral, including without limitation,
        the
        Americans With Disabilities Act. Borrower may contest in good faith any such
        law, ordinance, or regulation and withhold compliance during any proceeding,
        including appropriate appeals, so long as Borrower has notified Lender in
        writing prior to doing so and so long as, in Lender’s sole opinion, Lender’s
        interests in the Collateral are not jeopardized. Lender may require Borrower
        to
        post adequate security or a surety bond, reasonably satisfactory to Lender,
        to
        protect Lenders interest.

       

      Inspection.
        Permit employees or agents of Lender at any reasonable time to inspect any
        and
        all Collateral for the Loan or Loans and Borrower’s other properties and to
        examine or audit Borrower’s books, accounts, and records and to make copies and
        memoranda of Borrower’s books, accounts, and records. If Borrower now or at any
        time hereafter maintains any records (including without limitation computer
        generated records and computer software programs for the generation of such
        records) in the possession of a third party. Borrower, upon request of Lender,
        shall notify such party to permit Lender free access to such records at all
        reasonable times and to provide Lender with copies of any records it may
        request, all at Borrower’s expense.

       

      Environmental
        Compliance and Reports. Borrower shall comply in all respects with any
        and all Environmental Laws; not cause or permit to exist, as a result of
        an
        intentional or unintentional action or omission on Borrower’s part or on the
        part of any third party, on property owned and/or occupied by Borrower, any
        environmental activity where damage may result to the environment, unless
        such
        environmental activity is pursuant to and in compliance with the conditions
        of a
        permit issued by the appropriate federal, state or local governmental
        authorities; shall furnish to Lender promptly and in any event within thirty
        (30) days after receipt thereof a copy of any notice, summons, lien, citation,
        directive, letter or other communication from any governmental agency or
        instrumentality concerning any intentional or unintentional action or omission
        on Borrower’s part in connection with any environmental activity whether or not
        there is damage to the environment and/or other natural resources.

       

      Additional
        Assurances. Make, execute and deliver to Lender such promissory notes,
        mortgages, deeds of trust, security agreements, assignments, financing
        statements, instruments, documents and other agreements as Lender or its
        attorneys may reasonably request to evidence and secure the Loans and to
        perfect
        all Security Interests.

       

      LENDER’S
        EXPENDITURES. If any action or proceeding is commenced that would
        materially affect Lenders interest in the Collateral or if Borrower fails
        to
        comply with any provision of this Agreement or any Related Documents, including
        but not limited to Borrower’s failure to discharge or pay when due any amounts
        Borrower is required to discharge or pay under this Agreement or any Related
        Documents, Lender on Borrower’s behalf may (but shall not be obligated to) take
        any action that Lender deems appropriate, including but not limited to
        discharging or paying all taxes, liens, security interests, encumbrances
        and
        other claims, at any time levied or placed on any Collateral and paying all
        costs for insuring, maintaining and preserving any Collateral. All such
        expenditures incurred or paid by Lender for such purposes will then bear
        interest at the rate charged under the Note from the date incurred or paid
        by
        Lender to the date of repayment by Borrower. All such expenses will become
        a
        part of the Indebtedness and, at Lender’s option, will (A) be payable on demand;
        (B) be added to the balance of the Note and be apportioned among and be payable
        with any installment payments to become due during either (1) the term of
        any
        applicable insurance policy; or (2) the remaining term of the Note; or (C)
        be
        treated as a balloon payment which will be due and payable at the Note’s
        maturity.

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      BUSINESS
        LOAN AGREEMENT

       

      (Continued)

       

      
        
          
            	Loan
                    No. 0329000055-1 	
                     Page
                      4

                  

          

           

        

      

      NEGATIVE
        COVENANTS. Borrower covenants and agrees with Lender that while this
        Agreement is in effect, Borrower shall not, without the prior written consent
        of
        Lender:

       

      Indebtedness
        and Liens. (1) Except for trade debt incurred in the normal course of
        business and indebtedness to Lender contemplated by this Agreement, create,
        incur or assume indebtedness for borrowed money, including capital leases,
        (2)
        sell, transfer, mortgage, assign, pledge, lease, grant a security interest
        in,
        or encumber any of Borrower’s assets (except as allowed as Permitted Liens), or
        (3) sell with recourse any of Borrower’s accounts, except to
        Lender.

       

      Continuity
        of Operations. (1) Engage in any business activities substantially
        different than those in which Borrower is presently engaged, (2) cease
        operations, liquidate, merge, transfer, acquire or consolidate with any other
        entity, change its name, dissolve or transfer or sell Collateral out of the
        ordinary course of business, or (3) pay any dividends on Borrower’s stock (other
        than dividends payable in its stock), provided, however that notwithstanding
        the
        foregoing, but only so long as no Event of Default has occurred and is
        continuing or would result from the payment of dividends, if Borrower is
        a
“Subchapter S Corporation” (as defined in the Internal Revenue Code of 1986, as
        amended), Borrower may pay cash dividends on its stock to its shareholders
        from
        time to time in amounts necessary to enable the shareholders to pay income
        taxes
        and make estimated income tax payments to satisfy their liabilities under
        federal and state law which arise solely from their status as Shareholders
        of a
        Subchapter S Corporation because of their ownership of shares of Borrower’s
        stock, or purchase or retire any of Borrower’s outstanding shares or alter or
        amend Borrower’s capital structure,

       

      Loans.
        Acquisitions and Guaranties. (1) Loan, invest in or advance money or
        assets to any other person, enterprise or entity, (2) purchase, create or
        acquire any interest in any other enterprise or entity, or (3) incur any
        obligation as surety or guarantor other than in the ordinary course of
        business.

       

      Agreements.
        Borrower will not enter into any agreement containing any provisions which
        would
        be violated or breached by the performance of Borrower’s obligations under this
        Agreement or in connection herewith.

       

      CESSATION
        OF ADVANCES. If Lender has made any commitment to make any Loan to
        Borrower, whether under this Agreement or under any other agreement, Lender
        shall have no obligation to make Loan Advances or to disburse Loan proceeds
        if:
        (A) Borrower or any Guarantor is in default under the terms of this Agreement
        or
        any of the Related Documents or any other agreement that Borrower or any
        Guarantor has with Lender; (B) Borrower or any Guarantor dies, becomes
        incompetent or becomes insolvent, files a petition in bankruptcy or similar
        proceedings, or is adjudged a bankrupt; (C) there occurs a material adverse
        change in Borrower’s financial condition, in the financial condition of any
        Guarantor, or in the value of any Collateral securing any Loan; or ID) any
        Guarantor seeks, claims or otherwise attempts to limit, modify or revoke
        such
        Guarantor’s guaranty of the Loan or any other loan with Lender; or (E) Lender in
        good faith deems itself insecure, even though no Event of Default shall have
        occurred.

       

      DEFAULT.
        Each of the following shall constitute an Event of Default under this
        Agreement:

       

      Payment
        Default. Borrower fails to make any payment when due under the
        Loan.

       

      Other
        Defaults. Borrower fails to comply with or to perform any other term,
        obligation, covenant or condition contained in this Agreement or in any of
        the
        Related Documents or to comply with or to perform any term, obligation, covenant
        or condition contained in any other agreement between Lender and
        Borrower.

       

      Default
        in Favor of Third Parties. Borrower or any Grantor defaults under any
        loan, extension of credit, security agreement, purchase or sales agreement,
        or
        any other agreement, in favor of any other creditor or person that may
        materially affect any of Borrower’s or any Grantor’s property or Borrower’s or
        any Grantor’s ability to repay the Loans or perform their respective obligations
        under this Agreement or any of the Related Documents.

       

      False
        Statements. Any warranty, representation or statement made or furnished
        to Lender by Borrower or on Borrower’s behalf under this Agreement or the
        Related Documents is false or misleading in any material respect, either
        now or
        at the time made or furnished or becomes false or misleading at any time
        thereafter.

       

      Insolvency.
        The dissolution or termination of Borrower’s existence as a going business, the
        insolvency of Borrower, the appointment of a receiver for any part of Borrower’s
        property, any assignment for the benefit of creditors, any type of creditor
        workout, or the commencement of any proceeding under any bankruptcy or
        insolvency laws by or against Borrower.

       

      Defective
        Collateralization. This Agreement or any of the Related Documents
        ceases to be in full force and effect (including failure of any collateral
        document to create a valid and perfected security interest or lien) at any
        time
        and for any reason.

       

      Creditor
        or Forfeiture Proceedings. Commencement of foreclosure or forfeiture
        proceedings, whether by judicial proceeding, self-help, repossession or any
        other method, by any creditor of Borrower or by any governmental agency against
        any collateral securing the Loan. This includes a garnishment of any of
        Borrower’s accounts, including deposit accounts, with Lender. However, this
        Event of Default shall not apply if there is a good faith dispute by Borrower
        as
        to the validity or reasonableness of the claim which is the basis of the
        creditor or forfeiture proceeding and if Borrower gives Lender written notice
        of
        the creditor or forfeiture proceeding and deposits with Lender monies or
        a
        surety bond for the creditor or forfeiture proceeding, in an amount determined
        by Lender, in its sole discretion, as being an adequate reserve or bond for
        the
        dispute.

       

      Events
        Affecting Guarantor. Any of the preceding events occurs with respect to
        any Guarantor of any of the Indebtedness or any Guarantor dies or becomes
        incompetent, or revokes or disputes the validity of, or liability under,
        any
        Guaranty of the Indebtedness. In the event of a death, Lender, at its option,
        may, but shall not be required to, permit the Guarantor’s estate to assume
        unconditionally the obligations arising under the guaranty in a manner
        satisfactory to Lender, and, in doing so, cure any Event of
        Default.

       

      Change
        in Ownership. Any change in ownership of twenty-five percent (25%) or
        more of the common stock of Borrower.

       

      Adverse
        Change. A material adverse change occurs in Borrower’s financial
        condition, or Lender believes the prospect of payment or performance of the
        Loan
        is impaired.

       

      Insecurity.
        Lender in good faith believes itself insecure.

       

      Right
        to Cure. If any default, other than a default on Indebtedness, is
        curable and if Borrower or Grantor, as the case may be, has not been given
        a
        notice of a similar default within the preceding twelve (12) months, it may
        be
        cured if Borrower or Grantor, as the case may be, after receiving written
        notice
        from Lender demanding cure of such default: (1) cure the default within fifteen
        (15) days; or (2) if the cure requires more than fifteen (15) days, immediately
        initiate steps which Lender deems in Lender’s sole discretion to be sufficient
        to cure the default and thereafter continue and complete all reasonable and
        necessary steps sufficient to produce compliance as soon as reasonably
        practical.

       

      EFFECT
        OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except
        where otherwise provided in this Agreement or the Related Documents, all
        commitments and obligations of Lender under this Agreement or the Related
        Documents or any other agreement immediately will terminate (including any
        obligation to make further Loan Advances or disbursements), and, at Lender’s
        option, all Indebtedness immediately will become due and payable, all without
        notice of any kind to Borrower, except that in the case of an Event of Default
        of the type described in the ‘Insolvency’ subsection above, such acceleration
        shall be automatic and not optional. In addition, Lender shall have all the
        rights and remedies provided in the Related Documents or available at law,
        in
        equity, or otherwise. Except as may be prohibited by applicable law, all
        of
        Lender’s rights and remedies shall be cumulative and may be exercised singularly
        or concurrently. Election by Lender to pursue any remedy shall not exclude
        pursuit of any other remedy, and an election to make expenditures or to take
        action to perform an obligation of Borrower or of any Grantor shall not affect
        Lender’s right to declare a default and to exercise its rights and
        remedies.

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      BUSINESS
        LOAN AGREEMENT

       

      (Continued)

       

      
        
          
            	Loan
                    No. 0329000055-1 	
                     Page
                      5

                  

          

        

      

       

      DEPOSIT
        AGREEMENT SECURITY. Borrower hereby grants a security interest to
        Lender in any and all deposit accounts (checking, savings, money market or
        time)
        of Borrower at Lender, now existing or hereinafter opened, to secure the
        Indebtedness. This includes all deposit accounts Borrower holds jointly with
        someone else.

       

      JURY
        WAIVER; JUDICIAL REFERENCE. Borrower and Lender each waive their
        respective rights to a trial before a jury in connection with any disputes
        related to this Agreement, any of the Related Documents and the transactions
        contemplated hereby and thereby. Such disputes include without limitation
        any
        claim by Borrower or Lender, claims brought by Borrower as a class
        representative on behalf of others, and claims by a class representative
        on
        Borrower’s behalf as a class member (so-called “class action” suits). This
        provision shall not apply if, at the time an action is brought, Borrower’s loan
        is funded or maintained in a state where this jury trial waiver is not permitted
        by law.

       

      If
        a jury
        trial waiver is not permitted by applicable law and a dispute arises between
        Borrower and Lender with respect to this Agreement, any of the Related
        Documents, the enforcement hereof or thereof or the transactions contemplated
        hereby or thereby, either of Borrower or Lender may require that it be resolved
        by judicial reference in accordance with California Code of Civil Procedure,
        Sections 638, et seq., including without limitation whether the dispute is
        subject to a judicial reference proceeding. The referee shall be a retired
        judge, agreed upon by the parties, from either the American Arbitration
        Association (AAA) or Judicial Arbitration and Mediation Service, Inc. (JAMS).
        If
        the parties cannot agree on the referee, the party who initially selected
        the
        reference procedure shall request a panel of ten retired judges from either
        AAA
        or JAMS, and the court shall select the referee from that panel. The referee
        shall be appointed to sit with all of the powers provided by law. The parties
        agree that time is of the essence in conducting the judicial reference
        proceeding set forth herein. The costs of the judicial reference proceeding,
        including the fee for the court reporter, shall be borne equally by the parties
        as the costs are incurred, unless otherwise awarded by the referee. The referee
        shall hear all pre-trial and post-trial matters (including without limitation
        requests for equitable relief), prepare an award with written findings of
        fact
        and conclusions of law and apportion costs as appropriate. The referee shall
        be
        empowered to enter equitable relief as well as legal relief, provide all
        temporary or provisional remedies, enter equitable orders that are binding
        on
        the parties and rule on any motion that would be authorized in a trial,
        including without limitation motions for summary judgment or summary
        adjudication. Judgment upon the award shall be entered in the court in which
        such proceeding was commenced and all parties shall have full rights of appeal.
        This provision will not be deemed to limit or constrain Lenders right of
        offset,
        to obtain provisional or ancillary remedies, to interplead funds in the event
        of
        a dispute, to exercise any security interest or lien Lender may hold in property
        or to comply with legal process involving Borrower’s accounts or other
        property.

       

      INCREASED
        COSTS. If any change in a law, rule or regulation, or the
        interpretation or application thereof, or Lender’s compliance with any request,
        guideline or directive (whether or not having the force of law) of any
        governmental authority (collectively, a “Change in Law’) shall (i) impose,
        modify or deem applicable any reserve, special deposit or similar requirement
        against or with respect to the assets of, deposits with or for the account
        of or
        credit extended by Lender or (ii) impose on Lender any other condition affecting
        this Agreement or the loans hereunder or any letter of credit or participation
        therein and the result of any of the foregoing shall be to increase the cost
        to
        Lender of making or maintaining any loan (or its commitment to make any such
        loan) or to increase the cost to Lender of issuing or maintaining any letter
        of
        credit or to reduce the amount of any sum received or receivable by Lender
        hereunder, then Borrower will pay to Lender such additional amount as will
        compensate Lender for such additional costs or reduction. lf Lender determines
        that any Change in Law regarding capital requirements has or would have the
        effect of reducing the rate of return on the capital of Lender or Lenders
        holding company from this Agreement or the loans or letters of credit made
        or
        issued by Lender to a level below that which Lender or Lender’s holding company
        could have achieved but for such Change in Law (taking into consideration
        Lender’s policies and the policies of Lender’s holding company with respect to
        capital adequacy), then from time to time Borrower will pay to Lender such
        additional amount as will compensate Lender or Lender’s holding company for any
        such reduction, as set forth in a certificate of Lender describing in reasonable
        detail the amount or amounts necessary to compensate Lender or its holding
        company. The amounts and description in such certificate shall be conclusive
        absent manifest error, and Borrower agrees to pay to Lender the amount shown
        in
        such certificate within ten (10) business days after receipt thereof Failure
        or
        delay on the part of Lender to demand compensation pursuant to this section
        shall not constitute a waiver of Lender’s right to demand such
        compensation.

       

      AMENDED
        AND RESTATED BUSINESS LOAN AGREEMENT. THIS AGREEMENT AMENDS AND
        RESTATES THE BUSINESS LOAN AGREEMENT DATED JUNE 16, 2005, BETWEEN BORROWER
        AND
        LENDER, AS AMENDED PRIOR TO THE DATE HEREOF (the “Original Loan Agreement”).
        Upon the execution and delivery of this Agreement, the Indebtedness, obligations
        and other liabilities, including without limitation interest and fees accrued
        to
        the date hereof under the Original Loan Agreement (collectively, the “Prior
        Obligations”), shall continue to exist and be in full force and effect but shall
        be governed by the terms and conditions set forth in this Agreement. The
        Prior
        Obligations, together with any and all additional Indebtedness and other
        obligations incurred by Borrower hereunder or the Related Documents shall
        continue to be secured by all of the pledges and security interests pursuant
        to
        the Commercial Security Agreement dated June 16, 2005, between Borrower and
        Lender (the “Original Security Agreement”) and from and after the date hereof
        shall be secured by all of the pledges and security interests provided in
        connection with this Agreement, all as more specifically set forth in the
        Commercial Security Agreement dated August 31, 2007, which shall amend and
        restate the Original Security Agreement. Borrower hereby reaffirms the
        Indebtedness and its other obligations under the Original Loan Agreement
        and the
        Related Documents as defined in the Original Loan Agreement (collectively.
        the
“Original Loan Documents”), as amended, supplemented or otherwise modified by
        this Agreement and Related Documents. Borrower further agrees that each such
        Original Loan Document shall remain in full force and effect following the
        execution and delivery of this Agreement and that all references to the Business
        Loan Agreement or the Loan Agreement in the Original Loan Documents shall
        be
        deemed to refer to this Agreement. The execution and delivery of this Agreement
        shall constitute an amendment, replacement and restatement, but not novation
        or
        repayment, of the Prior Obligations.

       

      ADDITIONAL
        PROVISION. Borrower’s waiver of its right to privacy in the section
        entitled “MISCELLANEOUS PROVISIONS - Consent to Loan Participation” shall be
        subject to the condition precedent that Lender and the purchaser of any
        participation interest (the “Participant”) enter into a confidentiality
        agreement that provides for the Participant to maintain the confidentiality
        and
        not disclose of any confidential or proprietary information of Borrower to
        the
        same extent that Lender is required to maintain the confidentiality or privacy
        of such information disclosed by Borrower to Lender.

       

      MISCELLANEOUS
        PROVISIONS. The following miscellaneous provisions are a part of this
        Agreement:

       

      Amendments.
        This Agreement, together with any Related Documents, constitutes the entire
        understanding and agreement of the parties as to the matters set forth in
        this
        Agreement. No alteration of or amendment to this Agreement shall be effective
        unless given in writing and signed by the party or parties sought to be charged
        or bound by the alteration or amendment.

       

      Attorneys’
        Fees; Expenses. Borrower agrees to pay upon demand all of Lenders costs
        and expenses, including Lenders attorneys’ fees and Lenders legal expenses,
        incurred in connection with the enforcement of this Agreement. Lender may
        hire
        or pay someone else to help enforce this Agreement, and Borrower shall pay
        the
        costs and expenses of such enforcement. Costs and expenses include Lender’s
        attorneys’ fees and legal expenses whether or not there is a lawsuit, including
        attorneys’ fees and legal expenses for bankruptcy proceedings (including efforts
        to modify or vacate any automatic stay or injunction), appeals, and any
        anticipated post-judgment collection services. Borrower also shall pay all
        court
        costs and such additional fees as may be directed by the court.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      BUSINESS
        LOAN AGREEMENT

       

       (Continued)

       

      
        
          
            	Loan
                    No. 0329000055-1 	
                     Page
                      6

                  

          

           

        

      

      Caption
        Headings. Caption headings in this Agreement are for convenience
        purposes only and are not to be used to interpret or define the provisions
        of
        this Agreement.

       

      Consent
        to Loan Participation. Borrower agrees and consents to Lenders sale or
        transfer, whether now or later, of one or more participation interests in
        the
        Loan to one or more purchasers, whether related or unrelated to Lender. Lender
        may provide, without any limitation whatsoever, to any one or more purchasers,
        or potential purchasers, any information or knowledge Lender may have about
        Borrower or about any other matter relating to the Loan, and Borrower hereby
        waives any rights to privacy Borrower may have with respect to such matters.
        Borrower additionally waives any and all notices of sale of participation
        interests, as well as all notices of any repurchase of such participation
        interests. Borrower also agrees that the purchasers of any such participation
        interests will be considered as the absolute owners of such interests in
        the
        Loan and will have all the rights granted under the participation agreement
        or
        agreements governing the sale of such participation interests. Borrower further
        waives all rights of offset or counterclaim that it may have now or later
        against Lender or against any purchaser of such a participation interest
        and
        unconditionally agrees that either Lender or such purchaser may enforce
        Borrower’s obligation under the Loan irrespective of the failure or insolvency
        of any holder of any interest in the Loan. Borrower further agrees that the
        purchaser of any such participation interests may enforce its interests
        irrespective of any personal claims or defenses that Borrower may have against
        Lender.

       

      Governing
        Law.This Agreement will be governed by federal law applicable
        to Lender and, to the extent not preempted by federal law, the laws of the
        State
        of California without regardto its conflicts of law provisions.
        This Agreement has been accepted by Lender in the State of
        California.

       

      Choice
        of Venue. If there is a lawsuit, Borrower agrees upon Lender’s request
        to submit to the jurisdiction of the courts of Los Angeles County, State
        of
        California.

       

      No
        Waiver by Lender. Lender shall not be deemed to have waived any rights
        under this Agreement unless such waiver is given in writing and signed by
        Lender. No delay or omission on the part of Lender in exercising any right
        shall
        operate as a waiver of such right or any other right. A waiver by Lender
        of a
        provision of this Agreement shall not prejudice or constitute a waiver of
        Lenders right otherwise to demand strict compliance with that provision or
        any
        other provision of this Agreement. No prior waiver by Lender, nor any course
        of
        dealing between Lender and Borrower, or between Lender and any Grantor, shall
        constitute a waiver of any of Lenders rights or of any of Borrower’s or any
        Grantor’s obligations as to any future transactions. Whenever the consent of
        Lender is required under this Agreement, the granting of such consent by
        Lender
        in any instance shall not constitute continuing consent to subsequent instances
        where such consent is required and in all cases such consent may be granted
        or
        withheld in the sole discretion of Lender.

       

      Notices.
        Any notice required to be given under this Agreement shall be given in writing,
        and shall be effective when actually delivered, when actually received by
        telefacsimile (unless otherwise required by law), when deposited with a
        nationally recognized overnight courier, or, if mailed, when deposited in
        the
        United States mail, as first class, certified or registered mail postage
        prepaid, directed to the addresses shown near the beginning of this Agreement.
        Any party may change its address for notices under this Agreement by giving
        formal written notice to the other parties, specifying that the purpose of
        the
        notice is to change the party’s address. For notice purposes, Borrower agrees to
        keep Lender informed at all times of Borrowers current address. Unless otherwise
        provided or required by law, if there is more than one Borrower, any notice
        given by Lender to any Borrower is deemed to be notice given to all
        Borrowers.

       

      Severability.
        If a court of competent jurisdiction finds any provision of this Agreement
        to be
        illegal, invalid, or unenforceable as to any circumstance, that finding shall
        not make the offending provision illegal, invalid, or unenforceable as to
        any
        other circumstance, If feasible, the offending provision shall be considered
        modified so that it becomes legal, valid and enforceable, If the offending
        provision cannot be so modified, it shall be considered deleted from this
        Agreement. Unless otherwise required by law, the illegality, invalidity,
        or
        unenforceability of any provision of this Agreement shall not affect the
        legality, validity or enforceability of any other provision of this
        Agreement.

       

      Subsidiaries
        and Affiliates of Borrower. To the extent the context of any provisions
        of this Agreement makes it appropriate, including without limitation any
        representation, warranty or covenant, the word “Borrower” as used in this
        Agreement shall include all of Borrower’s subsidiaries and affiliates.
        Notwithstanding the foregoing however, under no circumstances shall this
        Agreement be construed to require Lender to make any Loan or other financial
        accommodation to any of Borrower’s subsidiaries or affiliates.

       

      Successors
        and Assigns. All covenants and agreements by or on behalf of Borrower
        contained in this Agreement or any Related Documents shall bind Borrower’s
        successors and assigns and shall inure to the benefit of Lender and its
        successors and assigns. Borrower shall not, however, have the right to assign
        Borrower’s rights under this Agreement or any interest therein, without the
        prior written consent of Lender.

       

      Survival
        of Representations and Warranties. Borrower understands and agrees that
        in extending Loan Advances, Lender is relying on all representations,
        warranties, and covenants made by Borrower in this Agreement or in any
        certificate or other instrument delivered by Borrower to Lender under this
        Agreement or the Related Documents. Borrower further agrees that regardless
        of
        any investigation made by Lender, all such representations, warranties and
        covenants will survive the extension of Loan Advances and delivery to Lender
        of
        the Related Documents, shall be continuing in nature, shall be deemed made
        and
        redated by Borrower at the time each Loan Advance is made, and shall remain
        in
        full force and effect until such time as Borrower’s Indebtedness shall be paid
        in full, or until this Agreement shall be terminated in the manner provided
        above, whichever is the last to occur.

       

      Time
        is of the Essence. Time is of the essence in the performance of this
        Agreement.

       

      DEFINITIONS.
        The following capitalized words and terms shall have the following meanings
        when
        used in this Agreement. Unless specifically stated to the contrary, all
        references to dollar amounts shall mean amounts in lawful money of the United
        States of America. Words and terms used in the singular shall include the
        plural, and the plural shall include the singular, as the context may require.
        Words and terms not otherwise defined in this Agreement shall have the meanings
        attributed to such terms in the Uniform Commercial Code. Accounting words
        and
        terms not otherwise defined in this Agreement shall have the meanings assigned
        to them in accordance with generally accepted accounting principles as in
        effect
        on the date of this Agreement:

       

      Advance.
        The word “Advance” means a disbursement of Loan funds made, or to be made, to
        Borrower or on Borrower’s behalf on a line of credit or multiple advance basis
        under the terms and conditions of this Agreement.

       

      Agreement.
        The word “Agreement” means this Business Loan Agreement, as this Business Loan
        Agreement may be amended or modified from time to time, together with all
        exhibits and schedules attached to this Business Loan Agreement from time
        to
        time.

       

      Borrower.
        The word “Borrower” means AeroVironment, Inc. and includes all co-signers and
        co-makers signing the Note and all their successors and assigns.

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      BUSINESS
        LOAN AGREEMENT

       

       (Continued)

       

      
        
          
            	Loan
                    No. 0329000055-1 	
                     Page
                      7

                  

          

        

      Cash
        & Equivalent. The words ‘Cash & Equivalent” mean all of
        Borrower’s cash, marketable securities, and other near-cash items, excluding
        sinking funds.

       

      Collateral.
        The word “Collateral” means all property and assets granted as collateral
        security for a Loan, whether real or personal property, whether granted directly
        or indirectly, whether granted now or in the future, and whether granted
        in the
        form of a security interest, mortgage, collateral mortgage, deed of trust,
        assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage,
        chattel trust, factor’s lien, equipment trust, conditional sale, trust receipt,
        lien, charge, lien or title retention contract, lease or consignment intended
        as
        a security device, or any other security or lien interest whatsoever, whether
        created by law, contract, or otherwise.

       

      Environmental
        Laws. The words “Environmental Laws” mean any and all state, federal
        and local statutes, regulations and ordinances relating to the protection
        of
        human health or the environment, including without limitation the Comprehensive
        Environmental Response, Compensation, and Liability Act of 1980, as amended.
        42
        U.S.C. Section 9601, et seq. (“CERCLA’), the Superfund Amendments and
        Reauthorization Act of 1985, Pub. L. No. 99-499 (‘SARA”), the Hazardous
        Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource
        Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., Chapters
        6.5
        through 7.7 of Division 20 of the California Health and Safety Code, Section
        25100, et seq., or other applicable state or federal laws, rules, or regulations
        adopted pursuant thereto.

       

      Event
        of Default. The words “Event of Default” mean any of the events of
        default set forth in this Agreement in the default section of this
        Agreement.

       

      GAAP.
        The word “GAAP” means generally accepted accounting principles.

       

      Grantor.
        The word “Grantor” means each and all of the persons or entities granting a
        Security Interest in any Collateral for the Loan, including without limitation
        all Borrowers granting such a Security Interest.

       

      Guarantor.
        The word “Guarantor” means any guarantor, surety, or accommodation party of any
        or all of the Loan.

       

      Guaranty.
        The word “Guaranty” means the guaranty from Guarantor to Lender, including
        without limitation a guaranty of all or part of the Note.

       

      Hazardous
        Substances. The words “Hazardous Substances” mean materials that,
        because of their quantity, concentration or physical, chemical or infectious
        characteristics, may cause or pose a present or potential hazard to human
        health
        or the environment when improperly used, treated, stored, disposed of,
        generated, manufactured, transported or otherwise handled. The words “Hazardous
        Substances” are used in their very broadest sense and include without limitation
        any and all hazardous or toxic substances, materials or waste as defined
        by or
        listed under the Environmental Laws. The term “Hazardous Substances” also
        includes, without limitation, petroleum and petroleum by-products or any
        fraction thereof and asbestos.

       

      Indebtedness.
        The word “Indebtedness” means the indebtedness evidenced by the Note or Related
        Documents, including all principal and interest together with all other
        indebtedness and costs and expenses for which Borrower is responsible under
        this
        Agreement or under any of the Related Documents.

       

      Lender.
        The word “Lender” means California Bank & Trust, its successors and
        assigns.

       

      Loan.
        The word “Loan” means any and all loans and financial accommodations from Lender
        to Borrower whether now or hereafter existing, and however evidenced, including
        without limitation those loans and financial accommodations described herein
        or
        described on any exhibit or schedule attached to this Agreement from time
        to
        time.

       

      Note.
        The word ‘Note” means the Note executed by AeroVironment Inc. in the original
        principal amount of $10,000,000.00 dated March 31, 2004. together with all
        renewals of, extensions of, modifications of, refinancings of, consolidations
        of, and substitutions for the Note or Credit Agreement or any other subsequent
        Notes evidencing further Indebtedness.

       

      Permitted
        Liens. The words “Permitted Liens” mean (1) liens and security
        interests securing Indebtedness owed by Borrower to Lender; (2) liens for
        taxes,
        assessments, or similar charges either not yet due or being contested in
        good
        faith; (3) liens of materialmen, mechanics, warehousemen, or carriers, or
        other
        like liens arising in the ordinary course of business and securing obligations
        which are not yet delinquent; (4) purchase money liens or purchase money
        security interests upon or in any property acquired or held by Borrower in
        the
        ordinary course of business to secure indebtedness outstanding on the date
        of
        this Agreement or permitted to be incurred under the paragraph of this Agreement
        titled “indebtedness and Liens”; (5) liens and security interests which, as of
        the date of this Agreement, have been disclosed to and approved by the Lender
        in
        writing; and (6) those liens and security interests which in the aggregate
        constitute an immaterial and insignificant monetary amount with respect to
        the
        net value of Borrower’s assets.

       

      Related
        Documents. The words “Related Documents” mean all promissory notes,
        credit agreements, loan agreements, environmental agreements, guaranties,
        security agreements, mortgages, deeds of trust, security deeds, collateral
        mortgages, and all other instruments, agreements and documents, whether now
        or
        hereafter existing, executed in connection with the Loan.

       

      Security
        Agreement. The words “Security Agreement” mean and include without
        limitation any agreements, promises, covenants, arrangements, understandings
        or
        other agreements, whether created by law, contract, or otherwise, evidencing,
        governing, representing, or creating a Security Interest.

       

      Security
        Interest. The words “Security Interest” mean, without limitation, any
        and all types of collateral security, present and future, whether in the
        form of
        a lien, charge, encumbrance, mortgage, deed of trust, security deed, assignment,
        pledge, crop pledge, chattel mortgage, collateral chattel mortgage, chattel
        trust, factor’s lien, equipment trust, conditional sale, trust receipt, lien or
        title retention contract, lease or consignment intended as a security device,
        or
        any other security or lien interest whatsoever whether created by law, contract,
        or otherwise.

       

      Tangible
        Net Worth. The words ‘Tangible Net Worth” mean Borrower’s total assets
        excluding all intangible assets (i.e., goodwill, trademarks, patents,
        copyrights, organizational expenses, and similar intangible items, but including
        leaseholds and leasehold improvements) less total debt.

       

      Trade
        Receivables. The words “Trade Receivables” mean all of Borrower’s
        accounts from trade, net of allowance for doubtful accounts.

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      BUSINESS
        LOAN AGREEMENT

       

       (Continued)

       

      
        
          
            	Loan
                    No. 0329000055-1 	
                     Page
                      8

                  

          

        

      

      

      BORROWER
        ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT
        AND
        BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS DATED AUGUST
        31,
        2007.

       

      BORROWER:

       

      
        	
                AEROVIRONMENT.
                  INC. 

              	 	 	 
	 	 	 	 	 
	
                By:

              	
                /s/
                  Timothy Conver

              	 	
                By:

              	
                /s/
                  Stephen Wright

              
	 	 	 	 	 
	
                Timothy
                  Conver, 

              	 	 	
                Stephen
                  Wright,

              
	
                President/CEO 

              	 	 	
                CFO
                  /VP of Finance/Secretary

              
	 	 	 	 	 
	 	 	 	 	 
	
                LENDER: 

              	 	 	 
	 	 	 	 	 
	
                CALIFORNIA
                  BANK & TRUST 

              	 	 	 
	 	 	 	 	 
	
                By:
                  

              	/s/
                Joe Lim	 	 	 
	 	 	 	 	 
	
                Authorized
                  Signer 

              	 	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      CHANGE
        OF TERMS

       

      
        	
                Principal

              	
                Loan
                  Date

              	
                Maturity

              	
                Loan
                  No

              	
                Call/Coll

              	
                Account

              	
                Officer

              	
                Initials

              
	
                $25,000,000.00

              	
                08-31-2007

              	
                08/31/2009

              	
                9329000055-1

              	 	
                9329000055-1

              	
                22163

              	
                JL

              
	
                References
                  in the shaded area are for the Lender’s use only and do not limit the
                  applicability of this document to any particular loan or
                  item.  Any item above containing “***” has been omitted due to
                  text length limitations

              

      

      

      
        	
                Borrower:

              	
                AeroVironment
                  Inc.

              	
                Lender:

              	
                California
                  Bank & Trust

              
	 	
                181
                  W. Huntington Drive, Suite 202

              	 	
                Los
                  Angeles Commercial Banking

              
	 	
                Monrovia,
                  CA  91016

              	 	
                550
                  South Hope Street, Suite 300

              
	 	 	 	
                Los
                  Angeles,
                  CA  90071

              

      

      
 

      
        	
                Principal
                  Amount: $25,000,000.00

              	
                Initial
                  Rate: 8.000%

              	
                Date
                  of Agreement: August 31,
                  2007

              

      

       

      DESCRIPTION
        OF EXISTING INDEBTEDNESS.

       

      The
        Business Loan Agreement dated June 16, 2005 and Promissory Note dated March
        31,
        2004, in the original amount of $10,000,000.00, as amended by those certain
        Change In Terms Agreements dated May 11, 2004 and June 16, 2005 from
        AeroVironment, Inc. to Lender.

       

      DESCRIPTION
        OF COLLATERAL.

       

      All
        inventory, equipment, accounts (including but not limited to all
        health-care-insurance receivables), chattel paper, instruments (including
        but
        not limited to all promissory notes), letter-of-credit rights, letters of
        credit, documents, deposit accounts, investment property, money, other rights
        to
        payment and performance, and general intangibles (including but not limited
        to
        all software and all payment intangibles); all fixtures; all attachments,
        accessions, accessories, fittings, increases, tools, parts, repairs, supplies,
        and commingled goods relating to the foregoing property, and all additions,
        replacements of and substitutions for all or any part of the foregoing property;
        all insurance refunds relating to the foregoing property; all good will relating
        to the foregoing property; all records and data and embedded software relating
        to the foregoing property, and all equipment, inventory and software to utilize,
        create, maintain and process any such records and data on electronic media;
        and
        all supporting obligations relating to the foregoing property; all whether
        now
        existing or hereafter arising, whether now owned or hereafter acquired or
        whether now or hereafter subject to any rights in the foregoing property;
        and
        all products and proceeds (including but not limited to all insurance payments)
        of or relating to the foregoing property.

       

      Without
        limiting the generality of the foregoing, the Collateral shall include the
        following government contracts:

       

      Government
        Contract Number W58RGZ-04 for US Army Raven

       

      Government
        Contract Number DAAHO1-03-C0134 for US Army Raven

       

      Government
        Contract Number DAAD16-03-C-0074 for SOCOM/NATICK Repair

       

      Government
        Contract Number W91 IQY-04-C-0046

       

      Government
        Contract Number FA8620 for AFOSOC Pointer

       

      Government
        Contract Number M67854-04-D-101 1-0001 for Dragon Eye BOA

       

      Government
        Contract Number N41756-04-D-4726 for Swift IDQ

       

      Government
        Contract Number NCA4-3 for Pathfinder/Systems Analysis/Refurbish/Flight
        Testing.

       

       

      DESCRIPTION
        OF CHANGE IN TERMS.

       

      1)
        The
        Maturity Date is hereby extended from August 31, 2007 to August 31,
        2009.

       

      2)
        The
        Revolving Line of Credit is hereby increased from $16,500,000.00 to
        $25,000,000.00.

       

      3)
        The
        interest rate is hereby amended from the California Bank & Trust Prime Rate,
        variable or the option of the One Month, Two Months, Three Months or Four
        Months, LIBOR plus 2.50% to California Bank & Trust Prime Rate minus 0.25%,
        variable or the option of the One Month, Two Months, Three Months or Four
        Months, LIBOR plus 2.00%.

       

      4)
        The
        Stand-By Letter of Credit Subline is hereby amended and restated as set forth
        in
        the attached exhibit.

       

      5)
        The
        Letter of Credit Subline is hereby amended and restated as set forth in the
        attached exhibit.

       

      6)
        The
        Note is subject to the terms and conditions of that Business Loan Agreement
        executed by Borrower in favor of Lender, as amended and restated as of August31
        2007.

       

      The
        Note
        is hereby amended and restated as follows:

       

      PROMISE
        TO PAY. AeroVironment, Inc. (“Borrower’) promises to pay to California
        Bank & Trust (‘Lender”), or order, in lawful money of the United States of
        America, the principal amount of Twenty Five Million and 00/100 Dollars
        ($25,000,000.00) or so much as may be outstanding. together with interest
        on the
        unpaid outstanding principal balance of each advance. Interest shall be
        calculated from the date of each advance until repayment of each
        advance.

       

      PAYMENT.
        Borrower will pay this loan in one payment of all outstanding principal plus
        all
        accrued unpaid interest on August 31, 2009. In addition, Borrower will pay
        regular monthly payments of all accrued unpaid interest due as of each payment
        date, beginning September 30, 2007, with all subsequent interest payments
        to be
        due on the last day of each month after that. Unless otherwise agreed or
        required by applicable law, payments will be applied first to any accrued
        unpaid
        interest; then to principal; then to any unpaid collection costs; and then
        to
        any late charges. Interest on this loan is computed en a 365/360 simple interest
        basis; that is, by applying the ratio of the annual interest rate over a
        year of
        360 days, multiplied by the outstanding principal balance, multiplied by
        the
        actual number of days the principal balance is outstanding. Borrower will
        pay
        Lender at Lender’s address shown above or at such other place as Lender may
        designate in writing.

       

      VARIABLE
        INTEREST RATE. Subject to designation of a different interest rate
        index by Borrower as provided below, the interest rate on this loan is subject
        to change from time to time based on changes in an index which is the rate
        of
        interest set from time to time by Bank as its Prime Rate- California Bank
&
Trust Prime Rate is determined by Bank as a means of pricing credit extensions
        to some customers and is neither tied to any external rate of interest or
        index
        nor is it necessarily the lowest rate of interest charged by Bank at any
        given
        time for any particular class of customers or credit extensions (the “Index”).
        The Index is not necessarily the lowest rate charged by Lender on its loans
        and
        is set by Lender in its sole discretion. If the Index becomes unavailable
        during
        the term of this loan, Lender may designate a substitute index after notifying
        Borrower. Lender will tell Borrower the current Index rate upon Borrower’s
        request. The interest rate change will not occur more often than each Day.
        Borrower understands that Lender may make loans based on other rates as well.
        The Index currently is 8.250% per annum. The interest rate to
        be applied to the unpaid principal balance during this loan will be at a
        rate of
        0.250 percentage points under the Index, resulting in an initial rate of
        8.000%
        per annum. NOTICE: Under no circumstances will the interest rate on this
        loan be
        more than the maximum rate allowed by applicable law.

       

      INTEREST
        RATE OPTIONS. On the terms and subject to the conditions set forth
        herein, Borrower will be able to select, from one of the following Rate Options,
        an interest rate which will be applicable to a particular dollar increment
        of
        amounts outstanding, or to be disbursed, under this Agreement. Principal
        shall
        be payable as specified herein in the “Payment” section, and interest shall be
        payable as specified for each Rate Option. The following Rate Options are
        available to Borrower:

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      CHANGE
        IN
        TERMS AGREEMENT

       

      (Continued)

       

      
        
          
            	Loan
                    No. 0329000055-1 	
                     Page
                      2

                  

          

           

        

      

      (A)
        Default Option. The interest rate margin and index described in the “VARIABLE
        INTEREST RATE paragraph herein (the “Default Option’).

       

      (B)
        LIBOR. A margin of 2.000 percentage points over LIBOR. For purposes of this
        Agreement. LIBOR shall mean Lender’s LIBOR rate for the relevant Interest Period
        determined as of the start of each Interest Period. The length of the Interest
        Period selected shall be designated One Month, Two Months, Three Months or
        Four
        Months, though the actual length of such periods shall be calculated as set
        forth below. The initial Interest Period, unless commenced on the first business
        day of a month, shall, notwithstanding the length of the Interest Period
        selected by Borrower, (i) for Interest Periods beginning before the 25th
        of each
        calendar month, end on the first business day of the month following
        commencement of the initial Interest Period; and (ii) for Interest Periods
        beginning on or after the 25th of each calendar month, end on the first business
        day of the second month following commencement of the initial Interest Period.
        All subsequent Interest Periods shall commence on the first business day
        of the
        relevant month and end on the first business day of the month determined
        by the
        length of the Interest Period selected by Borrower. The Bank’s calculation
        pursuant to the provision of the length of the Interest Periods shall be
        in its
        sole and absolute discretion and shall conclusively bind the Borrower absent
        manifest error. Lender’s LIBOR rate shall mean the rate per annum quoted by
        Lender as Lender’s LIBOR rate based upon quotes from the London Interbank
        Offered Rate from the British Bankers Association Interest Settlement Rates,
        as
        quoted for U.S. Dollars by Bloomberg, or other comparable services selected
        by
        the Lender, This definition of Lender’s LIBOR rate is to be strictly interpreted
        and is not intended to serve any purpose other than providing an index to
        determine the interest rate used herein. Lender’s LIBOR rate may not necessarily
        be the same as the quoted offered side in the Eurodollar time deposit market
        by
        any particular institution or service applicable to any interest period.
        Interest based on this Rate Option is a floating rate and will change on
        and as
        of the date of a change in LIBOR (the “Interest Period”). Adjustments in the
        interest rate due to changes in the maximum nonusurious interest rate allowed
        (the “Highest Lawful Rate”) shall be made on the effective day of any change in
        the Highest Lawful Rate. Under this Rate Option, Borrower shall make monthly
        interest payments on the same day of the month, with a final payment of all
        accrued and unpaid interest on the last day of such Interest Period and,
        in the
        case of an Interest Period greater than three (3) months, at three month
        (3
        month) intervals after the first day of such Interest Period.

       

      The
        following provisions concerning Rate Options are a part of this
        Agreement:

       

      Selection
        of Rate Options. Provided Borrower is not in default under this
        Agreement, Borrower may request (a “Rate Request”) that a $100,000.00 increment
        or any amount in excess thereof (an “Increment”) of the outstanding principal
        of, or amounts to be disbursed under, this Agreement bear interest at the
        selected rate. Borrower may make this Rate Request by telephonic notice,
        however
        no later than 10:00 AM PDT three (3) business days prior to the effective
        date
        of the Rate Request to permit Lender to quote the rate requested.

       

      Applicable
        Interest Rate. Borrower’s Rate Request will become effective, and
        interest on the increment designated will be calculated at the rate (the
        ‘Effective Rate”), which Borrower requested, for the applicable Interest Period,
        subject to the following:

       

      (1)
        Notwithstanding any Rate Request, interest shall be calculated on the basis
        of
        the Default Option if (a) Lender, in good faith, is unable to ascertain the
        requested Rate Option by reason of circumstances then affecting the applicable
        money market or otherwise, (b) it becomes unlawful or impracticable for Lender
        to maintain loans based upon the requested Rate Option, or (c) Lender, in
        good
        faith, determines that it is impracticable to maintain loans based on the
        requested Rate Option because of increased taxes, regulatory costs, reserve
        requirements, expenses or any other costs or charges that affect such Rate
        Options. Upon the occurrence of any of the events described in this “Interest
        Rate Options” section, any increment to which a requested Rate Option applies
        shall be immediately (or at the option of Lender, at the end the current
        Interest Period), without further action of Lender or Borrower, converted
        to an
        increment to which the Default Option applies.

       

      (2)
        Borrower may have no more than a total of 2 Effective Rates applicable to
        amounts outstanding under this Agreement at any given time.

       

      (3)
        A
        Rate Request shall be effective as to amounts to be disbursed under this
        Agreement only if, on the effective date of the Rate Requests, such amounts
        are
        in fact disbursed to or for Borrower’s account in accordance with the provisions
        of this Agreement and any related loan documents.

       

      (4)
        Any
        amounts of outstanding principal for which a Rate Request has not been made,
        or
        is otherwise not effective, shall bear interest until paid in full at the
        Default Option.

       

      (5)
        Any
        amounts of outstanding principal bearing interest based upon a Rate Option
        shall
        bear interest at such rate until the end of the Interest Period therefor,
        and
        thereafter shall bear interest based upon the Default Option unless a new
        Rate
        Request for a Rate Option complying with the terms hereof has been made and
        has
        become effective.

       

      (6)
        If
        Borrower is in default under this Agreement (‘Default’), then Lender shall no
        longer be obligated to honor any Rate Requests.

       

      (7)
        No
        Interest Period shall extend beyond the maturity date of this
        Agreement.

       

      Notices:
        Authority to Act. Borrower acknowledges and agrees that the agreement
        of Lender herein to receive certain notices by telephone is solely for
        Borrower’s convenience. Lender shall be entitled to rely on the authority of the
        person purporting to be a person authorized by Borrower to give such notice,
        and
        Lender shall have no liability to Borrower on account of any action taken
        by
        Lender in reliance upon such telephonic notice, Borrower’s obligation to repay
        all sums owing under the Note shall not be affected in any way or to any
        extent
        by any failure by Lender to receive written confirmation of any telephonic
        notice or the receipt by Lender of a confirmation which is at variance with
        the
        terms understood by Lender to be contained in the telephonic
        notice.

       

      PREPAYMENT;
        MINIMUM INTEREST CHARGE. In any event, even upon full prepayment of
        this Agreement, Borrower understands that Lender is entitled to a
minimum interest charge of $200.00. Other than Borrower’s
        obligation to pay any minimum interest charge, Borrower may pay without penalty
        all or a portion of the amount owed earlier than it is due. Early payments
        will
        not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s
        obligation to continue to make payments of accrued unpaid interest. Rather,
        early payments will reduce the principal balance due. Borrower agrees not
        to
        send Lender payments marked “paid in full”, “without recourse”, or similar
        language. If Borrower sends such a payment. Lender may accept it without
        losing
        any of Lender’s rights under this Agreement, and Borrower will remain obligated
        to pay any further amount owed to Lender. All written communications concerning
        disputed amounts, including any check or other payment instrument that indicates
        that the payment constitutes ‘payment in full” of the amount owed or that is
        tendered with other conditions or limitations or as full satisfaction of
        a
        disputed amount must be mailed or delivered to: California Bank & Trust, Los
        Angeles Commercial Banking, 550 South Hope Street, Suite 300, Los Angeles,
        CA
        9D071.

       

      LATE
        CHARGE. If a payment is 15 days or more late, Borrower will be charged
        6.000% of the regularly scheduled payment or $500.00, whichever
        is
        less.

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      CHANGE
        IN
        TERMS AGREEMENT

       

      (Continued)

       

      
        
          
            	Loan
                    No. 0329000055-1 	
                     Page
                      3

                  

          

           

        

      

      INTEREST
        AFTER DEFAULT. Upon default, the interest rate on this loan shall, if
        permitted under applicable law, immediately increase by adding a 5.000
        percentage point margin (“Default Rate Margin”). The Default Rate Margin shall
        also apply to each succeeding interest rate change that would have applied
        had
        there been no default.

       

      DEFAULT.
        Each of the following shall constitute an Event of Default under this
        Agreement:

       

      Payment
        Default. Borrower fails to make any payment when due under the
        Indebtedness.

       

      Other
        Defaults. Borrower fails to comply with or to perform any other term,
        obligation, covenant or condition contained in this Agreement or in any of
        the
        Related Documents or to comply with or to perform any term, obligation, covenant
        or condition contained in any other agreement between Lender and
        Borrower.

       

      Default
        in Favor of Third Parties. Borrower defaults under any loan, extension
        of credit, security agreement, purchase or sales agreement, or any other
        agreement, in favor of any other creditor or person that may materially affect
        any of Borrowers property or Borrower’s ability to perform Borrower’s
        obligations under this Agreement or any of the Related Documents.

       

      False
        Statements. Any warranty, representation or statement made or furnished
        to Lender by Borrower or on Borrower’s behalf under this Agreement or the
        Related Documents is false or misleading in any material respect, either
        now or
        at the time made or furnished or becomes false or misleading at any time
        thereafter.

       

      Insolvency.
        The dissolution or termination of Borrower’s existence as a going business, the
        insolvency of Borrower, the appointment of a receiver for any part of Borrower’s
        property, any assignment for the benefit of creditors, any type of creditor
        workout, or the commencement of any proceeding under any bankruptcy or
        insolvency laws by or against Borrower.

       

      Creditor
        or Forfeiture Proceedings. Commencement of foreclosure or forfeiture
        proceedings, whether by judicial proceeding, self-help, repossession or any
        other method, by any creditor of Borrower or by any governmental agency against
        any collateral securing the Indebtedness. This includes a garnishment of
        any of
        Borrower’s accounts, including deposit accounts, with Lender. However, this
        Event of Default shall not apply if there is a good faith dispute by Borrower
        as
        to the validity or reasonableness of the claim which is the basis of the
        creditor or forfeiture proceeding and if Borrower gives Lender written notice
        of
        the creditor or forfeiture proceeding and deposits with Lender monies or
        a
        surety bond for the creditor or forfeiture proceeding, in an amount determined
        by Lender, in its sole discretion, as being an adequate reserve or bond for
        the
        dispute.

       

      Events
        Affecting Guarantor. Any of the preceding events occurs with respect to
        any guarantor, endorser, surety, or accommodation party of any of the
        Indebtedness or any guarantor, endorser, surety, or accommodation party dies
        or
        becomes incompetent, or revokes or disputes the validity of, or liability
        under,
        any Guaranty of the Indebtedness evidenced by this Note. In the event of
        a
        death, Lender, at its option, may, but shall not be required to, permit the
        guarantor’s estate to assume unconditionally the obligations arising under the
        guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event
        of
        Default.

       

      Change
        In Ownership. Any change in ownership of twenty-five percent (25%) or
        more of the common stock of Borrower.

       

      Adverse
        Change. A material adverse change occurs in Borrower’s financial
        condition, or Lender believes the prospect of payment or performance of the
        Indebtedness is impaired.

       

      Insecurity.
        Lender in good faith believes itself insecure.

       

      Cure
        Provisions. If any default, other than a default in payment is curable
        and if Borrower has not been given a notice of a breach of the same provision
        of
        this Agreement within the preceding twelve (12) months, it may be cured if
        Borrower, after receiving written notice from Lender demanding cure of such
        default: (1) cures the default within fifteen (15) days; or (2) if the cure
        requires more than fifteen (15) days, immediately initiates steps which Lender
        deems in Lender’s sole discretion to be sufficient to cure the default and
        thereafter continues and completes all reasonable and necessary steps sufficient
        to produce compliance as soon as reasonably practical.

       

      LENDER’S
        RIGHTS. Upon default, Lender may declare the entire unpaid principal
        balance under this Agreement and all accrued unpaid interest immediately
        due,
        and then Borrower will pay that amount.

       

      ATTORNEYS’
        FEES; EXPENSES. Lender may hire or pay someone else to help collect
        this Agreement if Borrower does not pay. Borrower will pay Lender that amount.
        This includes, subject to any limits under applicable law, Lender’s attorneys’
fees and Lender’s legal expenses, whether or not there is a lawsuit, including
        attorneys’ fees, expenses for bankruptcy proceedings (including efforts to
        modify or vacate any automatic stay or injunction), and appeals. Borrower
        also
        will pay any court costs, in addition to all other sums provided by
        law.

       

      GOVERNING
        LAW, This Agreement will be governed by federal law applicable to Lender
        and, to
        the extent not preempted by federal law, the laws of the State of California
        without regard to its conflicts of law provisions. This Agreement has been
        accepted by Lender in the State of California.

       

      CHOICE
        OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request
        to submit to the jurisdiction of the courts of Los Angeles County, State
        of
        California.

       

      COLLATERAL.
        Borrower acknowledges this Agreement is secured by the following collateral
        described in the security instrument listed herein: inventory, chattel paper,
        accounts, equipment and general intangibles described in a Commercial Security
        Agreement dated August 31, 2007.

       

      LINE
        OF CREDIT. This Agreement evidences a revolving line of credit.
        Advances under this Agreement may be requested either orally or in writing
        by
        Borrower or as provided in this paragraph. Lender may, but need not, require
        that all oral requests be confirmed in writing. All communications,
        instructions, or directions by telephone or otherwise to Lender are to be
        directed to Lender’s office shown above. The following persons currently are
        authorized to request advances and authorize payments under the line of credit
        until Lender receives from Borrower, at Lender’s address shown above, written
        notice of revocation of their authority: Timothy Conver, President/CEO
        of AeroVironment, Inc.; Stephen C. Wright, CFO/VP of Finance/Sec. of
        AeroVironment, Inc.; and Suzanne Gilman, Controller. Borrower agrees to
        be liable for all sums either: (A) advanced in accordance with the instructions
        of an authorized person or (B) credited to any of Borrower’s accounts with
        Lender. The unpaid principal balance owing on this Agreement at any time
        may be
        evidenced by endorsements on this Agreement or by Lender’s internal records,
        including daily computer print-outs.

       

      CONTINUING
        VALIDITY. Except as expressly changed by this Agreement, the terms of
        the original obligation or obligations, including all agreements evidenced
        or
        securing the obligation(s), remain unchanged and in full force and effect.
        Consent by Lender to this Agreement does not waive Lender’s right to strict
        performance of the obligation(s) as changed, nor obligate Lender to make
        any
        future change in terms. Nothing in this Agreement will constitute a satisfaction
        of the obligation(s), It is the intention of Lender to retain as liable parties
        all makers and endorsers of the original obligation(s), including accommodation
        parties, unless a party is expressly released by Lender in writing. Any maker
        or
        endorser, including accommodation makers, will not be released by virtue
        of this
        Agreement. If any person who signed the original obligation does not sign
        this
        Agreement below, then all persons signing below acknowledge that this Agreement
        is given conditionally, based on the representation to Lender that the
        non-signing party consents to the changes and provisions of this Agreement
        or
        otherwise will not be released by it. This waiver applies not only to any
        initial extension, modification or release, but also to all such subsequent
        actions.

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      CHANGE
        IN
        TERMS AGREEMENT

       

      (Continued)

       

      
        
          
            	Loan
                    No. 0329000055-1 	
                     Page
                      4

                  

          

           

        

      

      FINANCIAL
        STATEMENT CERTIFICATIONS. The undersigned hereby certifies to
        California Bank & Trust (“Bank’) that all financial information
        (“Information”) submitted to Bank now and at all times during the terms of this
        loan does, and will, fairly and accurately represent the financial condition
        of
        the undersigned, all Borrowers and Guarantors. Financial Information includes,
        but is not limited to all Business Financial Statements (including Interim
        and
        Year-End financial statements that are company prepared and/or CPA-prepared),
        Business Income Tax Returns, Borrowing Base Certificates, Accounts Receivable
        and Accounts Payable Agings, Personal Financial Statements and Personal Income
        Tax Returns. The undersigned understands that the Bank will rely on all
        financial information, whenever provided, and that such information is a
        material inducement to Bank to make, to continue to make, or otherwise extend
        credit accommodations to the undersigned. The undersigned covenants and agrees
        to notify Bank of any adverse material changes in her/his/its financial
        condition in the future. The undersigned further understands and acknowledges
        that there are criminal penalties for giving false financial information
        to
        federally insured financial institutions.

       

      DEPOSIT
        AGREEMENT SECURITY. Borrower hereby grants a security interest to
        Lender in any and all deposit accounts (checking, savings, money market or
        time)
        of Borrower at Lender, now existing or hereinafter opened, to secure its
        Indebtedness hereunder. This includes all deposit accounts Borrower holds
        jointly with someone else. -

       

      JURY
        WAIVER; JUDICIAL REFERENCE. Borrower and Lender each waive their
        respective rights to a trial before a jury in connection with any disputes
        related to this Note, the loan evidenced hereby and any other loan documents
        in
        connection herewith and therewith. Such disputes include without limitation
        any
        claim by Borrower or Lender, claims brought by Borrower- as a class
        representative on behalf of others, and claims by a class representative
        on
        Borrower’s behalf as a class member (so-called “class action” suits). This
        provision shall not apply if, at the time an action is brought, Borrower’s loan
        is funded or maintained in a state where this jury trial waiver is not permitted
        by law.

       

      If
        a jury
        trial waiver is not permitted by applicable law and a dispute arises between
        Borrower and Lender with respect to this Note, its enforcement or the
        transactions contemplated by the related loan documents, either of Borrower
        or
        Lender may require that it be resolved by judicial reference in accordance
        with
        California Code of Civil Procedure, Sections 638, et seq., including without
        limitation whether the dispute is subject to a judicial reference proceeding.
        The referee shall be a retired judge, agreed upon by the parties, from either
        the American Arbitration Association (AAA) or Judicial Arbitration and Mediation
        Service, Inc. (JAMS). If the parties cannot agree on the referee, the party
        who
        initially selected the reference procedure shall request a panel of ten retired
        judges from either AAA or JAMS, and the court shall select the referee from
        that
        panel. The referee shall be appointed to sit with all of the powers provided
        by
        law. The parties agree that time is of the essence in conducting the judicial
        reference proceeding set forth herein. The costs of the judicial reference
        proceeding, including the fee for the court reporter, shall be borne equally
        by
        the parties as the costs are incurred, unless otherwise awarded by the referee.
        The referee shall hear all pre-trial and post-trial matters (including without
        limitation requests for equitable relief), prepare an award with written
        findings of fact and conclusions of law and apportion costs as appropriate.
        The
        referee shall be empowered to enter equitable relief as well as legal relief,
        provide all temporary or provisional remedies, enter equitable orders that
        are
        binding on the parties and rule on any motion that would be authorized in
        a
        trial, including without limitation motions for summary judgment or summary
        adjudication. Judgment upon the award shall be entered in the court in which
        such proceeding was commenced and all parties shall have full rights of appeal.
        This provision will not be deemed to limit or constrain Lender’s right of
        offset, to obtain provisional or ancillary remedies, to interplead funds
        in the
        event of a dispute, to exercise any security interest or lien Lender may
        hold in
        property or to comply with legal process involving Borrower’s accounts or other
        property.

       

      STAND-BY
        LETTER OF CREDIT SUBLINE EXHIBIT. An exhibit, titled “Stand-By Letter
        of Credit Subline, is attached to this Agreement and by this reference is
        made a
        part of this Agreement just as if all the provisions, terms and conditions
        of
        the Exhibit had been fully set forth in this Agreement.

       

      LETTER
        OF CREDIT SUBLINE EXHIBIT. An exhibit, titled “Letter of Credit Subline
        Exhibit,” is attached to this Agreement and by this reference is made a part of
        this Agreement just as if all the provisions, terms and conditions of the
        Exhibit had been fully set forth in this Agreement.

       

      SUCCESSORS
        AND ASSIGNS. Subject to any limitations stated in this Agreement on
        transfer of Borrower’s interest, this Agreement shall be binding upon and inure
        to the benefit of the parties, their successors and assigns. If ownership
        of the
        Collateral becomes vested in a person other than Borrower, Lender, without
        notice to Borrower, may deal with Borrower’s successors with reference to this
        Agreement and the Indebtedness by way of forbearance or extension without
        releasing Borrower from the obligations of this Agreement or liability under
        the
        Indebtedness.

       

      MISCELLANEOUS
        PROVISIONS. If any part of this Agreement cannot be enforced, this fact
        will not affect the rest of the Agreement. Lender may delay or forgo enforcing
        any of its rights or remedies under this Agreement without losing them. Borrower
        and any other person who signs, guarantees or endorses this Agreement, to
        the
        extent allowed by law, waive any applicable statute of limitations, presentment,
        demand for payment, and notice of dishonor. Upon any change in the terms
        of this
        Agreement, and unless otherwise expressly stated in writing, no party who
        signs
        this Agreement, whether as maker, guarantor, accommodation maker or endorser,
        shall be released from liability. All such parties agree that Lender may
        renew
        or extend (repeatedly and for any length of time) this loan or release any
        party
        or guarantor or collateral; or impair, fail to realize upon or perfect Lender’s
        security interest in the collateral; and take any other action deemed necessary
        by Lender without the consent of or notice to anyone. All such parties also
        agree that Lender may modify this loan without the consent of or notice to
        anyone other than the party with whom the modification is made. The obligations
        under this Agreement are joint and several.

       

      PRIOR
        TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS
        OF
        THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER
        AGREES
        TO THE TERMS OF THE AGREEMENT.

       

      BORROWER:

       

      AEROVIRONMENT,
        INC.

       

      
        	
                By:

              	
                /s/
                  Timothy Conver

              	 	
                By:

              	
                /s/
                  Stephen C. Wright

              
	 	
                Timothy
                  Conver, President/CEO of

              	 	 	
                Stephen
                  C. Wright, CFO/VP of

              
	 	
                AeroVironment
                  Inc.

              	 	 	
                Finance/Sec.
                  Of AeroVironment, Inc.Unassociated Document

    Exhibit
      10.1

     

    
      	
              NATIONAL
                ASSOCIATION OF SECURITIES DEALERS

              ------------------------------------------------------------------------X

              BREAN
                MURRAY CARRET & CO., LLC,

            	:	 	 
	 	 	:	NASD Docket No.: 06-04871
	
                          Claimant,

            	 	:	 
	 	 	:	Settlement Agreement
	
              -
                against -

            	 	:	 
	 	 	 	 
	
              ECO2
                PLASTICS INC., f/k/a ITEC
                ENVIRONMENTAL

              GROUP,
                INC. and GARY
                DE LAURENTIIS,

            	
              :

              :

            	 	 
	 	 	:	 
	
                              Respondents.

            	
            	:	 
	------------------------------------------------------------------------X	 	 	 

    

    

    STIPULATION
      OF SETTLEMENT dated as of August 30, 2007, by and between Brean Murray Carret
      & Co., LLC, (hereinafter referred to as “Brean Murray Carret”) on the one
      hand and Eco2 Plastics Inc., f/k/a Itec Environmental Group, Inc. and Gary
      De
      Laurentiis (hereinafter collectively referred to as “Itec”) on the
      other:

     

    WHEREAS,
      on or about November 1, 2006, Brean Murray Carret commenced an arbitration
      before the National Association of Securities Dealers, NASD Docket No. 06-04871
      against Itec (the “Action”) alleging, inter alia, that Itec breached its
      agreement with Brean Murray Carret; and 

     

    WHEREAS,
      on or about January 29, 2007, Itec filed an Answer and Counterclaims in which
      Itec denied liability and also alleged, inter alia, that Brean Murray Carret
      breached its agreement with Itec; and

     

    WHEREAS,
      the parties would prefer to resolve their dispute through settlement rather
      than
      to continue with arbitration;

     

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, and in consideration of the mutual covenants
      herein, Brean Murray Carret and Itec (hereinafter collectively, the “Parties”)
      hereby agree as follows:

     

    
      1.
        Consideration
        to be Paid by Itec

       

    

    
      a.     Simultaneously
        with its execution of this Agreement, Itec will cause its counsel to deliver
        to
        Brean Murray Carret an opinion letter, pursuant to Rule 144(k), providing
        for
        the removal of restrictive legends from the certificate representing 2,737,220
        shares of Itec stock held by Brean Murray for more than two years and Brean
        Murray Carret’s counsel will provide Itec’s counsel with a customary seller’s
        representation letter, broker’s representation letter and a duly completed and
        executed Form 144.

       

    

    
      b.     Simultaneously
        with its execution of this Agreement, Itec will cause its counsel to deliver
        to
        Brean Murray Carret an opinion letter providing for the sale of 744,655 shares
        of Itec stock pursuant to Rule 144 and Brean Murray Carret’s counsel will
        provide Itec’s counsel with a customary seller’s representation letter, broker’s
        representation letter, and a duly completed and executed Form 144.

       

    

    
      c.     Simultaneously
        with its execution of this Agreement, Brean Murray Carret shall execute an
        affidavit of lost common stock purchase warrant and Itec shall reissue to
        Brean
        Murray Carret a warrant to purchase 850,000 shares of Itec common stock at
        $.001/share on a cashless basis, which warrant shall be dated August 1,
        2005.

       

    

    
      d.     Simultaneously
        with its execution of this Agreement, Itec shall provide to Brean Murray
        Carret
        a certificate representing 5,000,000 shares of Itec common stock and an opinion
        letter pursuant to Rule 144(k), and/or any other documentation requested
        by
        Itec’s transfer agent, to provide for the removal of the restrictive legend on
        the newly issued certificate.

    

    
       

      2.
        Dismissal
        of Arbitration

    

     

    Immediately
      upon Itec’s complete performance under the terms of this Agreement, Brean Murray
      Carret will forward a letter, on behalf of counsel for both sides, to the
      National Association of Securities Dealers advising that the instant action
      has
      been discontinued with prejudice.

     

    3. Releases

    Simultaneously
      with the execution of this Stipulation of Settlement, the parties will execute
      and exchange general releases in the forms collectively attached as Exhibit
      A.
      Both
      releases will be held in escrow by counsel for Brean Murray Carret. Upon
      completion by Itec of Items 1a, 1b, 1c and 1d set forth above in accordance
      with
      the terms of this Agreement, counsel for Brean Murray Carret will deliver the
      release executed by Brean Murray Carret to Itec.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    4. Binding 

     

    This
      Agreement shall be binding on the Parties, their heirs, and executors,
      administrators, successors,
      and assigns.

     

    5.
       Counterparts

     

    This
      Agreement may be executed in counterparts, each of which shall be considered
      to
      be an original instrument.

     

    6.
       Governing
      Law

     

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, without regard to any conflicts of laws
      analysis.

     

    7. Additional
      Documents

     

    The
      Parties agree to execute or cause its attorneys to execute any additional
      documents and take any further action that may reasonably be required in order
      to consummate this Agreement or otherwise fulfill the obligations of the Parties
      hereunder.

     

    8. Invalidity
      of Agreement

     

    In
      the
      event any one or more of the provisions of this Agreement shall for any reason
      be invalid, illegal or unenforceable in any respect, such invalidity,
      illegality, or unenforceability shall not affect any other provision of this
      Agreement, but this Agreement shall be construed as if such invalid, illegal
      or
      unenforceable provision had never been contained herein.

     

    9. Headings

     

    The
      headings in this Agreement are for descriptive purposes only, and are not part
      of this Agreement. It is expressly understood among the Parties that the
      headings shall not be resorted to for any issue of contractual
      interpretation.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    10. Negotiated
      By Attorneys

     

    The
      Parties represent and warrant that this Agreement was negotiated and drafted
      by
      the Parties’ respective attorneys and is not the product of any single
      author.

     

    11. No
      Reliance/Represented By Counsel 

     

    The
      Parties represent and warrant that they have at all times been represented
      by
      counsel of their choosing in deciding to enter into this Agreement; that no
      oral
      promise was made to induce them to enter into this Agreement; that each relied
      on his/its own judgment (and the judgment of their respective counsel) in
      choosing to enter into this Agreement, and did not rely in any way on any
      statement or omission made by any other party.

     

    12. Entire
      Agreement

     

    This
      Agreement represents and expresses the entire agreement between and among the
      respective Parties and may not be changed orally. 

     

    IN
      WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
      day
      and year written below.

     

    
      	Dated: August
              30, 2007	 	 
	 	BREAN
              MURRAY
              CARRET & CO., LLC
	 
 	 
 	 
 
	 	By:  	 
	 	
              
William
              J. McCluskey, President and CEO 
	 	Title 

    

    
      	 	 	 
	 	 	 
	 	
              ECO2
                PLASTICS INC., f/ka/ ITEC

              ENVIRONMENTAL
                GROUP, INC

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Rodney
              Rougelot, CEO
	 	 
	 	
              
Gary
              De Laurentiis
	 	 

    

    
       

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      

    Exhibit
      A

     

    
      	
              NATIONAL
                ASSOCIATION OF SECURITIES DEALERS

              ------------------------------------------------------------------------X

              BREAN
                MURRAY CARRET & CO., LLC,

            	:	 	 
	 	 	:	NASD Docket No.: 06-04871
	
                          Claimant,

            	 	:	 
	 	 	:	General
              Release
	
              -
                against -

            	 	:	 
	 	 	 	 
	
              ECO2
                PLASTICS INC., f/k/a ITEC
                ENVIRONMENTAL

              GROUP,
                INC. and GARY
                DE LAURENTIIS,

            	
              :

              :

            	 	 
	 	 	:	 
	
                              Respondents.

            	
            	:	 
	------------------------------------------------------------------------X	 	 	 

    

     

    TO
      ALL TO
      WHOM THESE PRESENTS SHALL COME OR MAY CONCERN, KNOW THAT 

    

    BREAN
      MURRAY CARRET & CO., LLC
      (hereinafter referred to as “BMC” or “Releasor”), for good and valuable
      consideration received from ECO2
      PLASTICS INC., f/k/a ITEC ENVIRONMENTAL GROUP, INC. and GARY DE LAURENTIIS
      (hereinafter
      collectively referred to as “Itec” or “Releasees”), the receipt of which is
      hereby acknowledged, covenants not to sue and hereby releases and discharges
      Releasees, Releasees’ current or former officers, directors, members, partners,
      employees, agents, affiliates, parents, subsidiaries, alter-egos, predecessors,
      successors or assigns or otherwise related entities, attorneys, and insurers,
      from all actions, causes of action, suits, debts, dues, sums of money, accounts,
      reckonings, bonds, bills, specialties, covenants, contracts, controversies,
      agreements, promises, variances, trespasses, damages, judgments, extents,
      executions, claims and demands whatsoever in law, admiralty or equity, which
      the
      Releasor, Releasor’s current or former officers, directors, members, partners,
      employees, agents, affiliates, parents, subsidiaries, alter-egos, predecessors,
      successors or assigns or otherwise related entities, attorneys, insurers, heirs,
      executors or administrators, ever had, now have or hereafter can, shall or
      may
      have from the beginning of the world to the date of this General Release,
      including but not limited to any claim, counterclaim or cause of action which
      was or could have been asserted in, or which arise from any of the facts or
      transactions that form the basis for any claim or counterclaim, set forth in
      any
      pleading filed in any action which was pending or in an arbitration entitled
      Brean Murray Carret & Co., LLC v. ECO2 Plastics Inc., f/k/a Itec
      Environmental Group, Inc. and Gary De Laurentiis, NASD Docket No.:
      06-04871.

    

    Releasor
      agrees and fully understands that this is a full and final General Release
      applying to all known, unknown, anticipated and unanticipated injuries and
      damages from the beginning of the world to the date of this Release, including
      any and all claims now existing or which may arise in the future, arising out
      of
      the alleged circumstances, incidents or events set forth in the Action. Releasor
      expressly waives any right or claim of right to assert hereafter that any claim,
      demand or obligation and/or cause of action has, through ignorance, oversight
      or
      error, been omitted from the terms of this General Release, and further
      expressly waives any right or claim of right under the law of any jurisdiction
      that releases such as those herein given do not apply to unknown or unstated
      claims. 

    

    Whenever
      the text hereof requires, the use of singular number shall include the
      appropriate plural number. This General Release may not be changed
      orally.

    

    IN
      WITNESS WHEREOF, the Releasor has hereunto set its hand and seal on the
      30th
      day of
      August 2007.

    

    
      
        	 	 	 
	 	BREAN
                MURRAY
                CARRET & CO., LLC
	 
 	 
 	 
 
	 	By:  	 
	 	
                
William
                J. McCluskey, President and CEO 
	 	Title 

      

      
        	 	 	 
	 	 	 
	 	
                ECO2
                  PLASTICS INC., f/ka/ ITEC

                ENVIRONMENTAL
                  GROUP, INC

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Rodney
                Rougelot, CEO
	 	 
	 	
                
Gary
                De Laurentiis
	 	 

      

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
              NATIONAL
                ASSOCIATION OF SECURITIES DEALERS

              ------------------------------------------------------------------------X

              BREAN
                MURRAY CARRET & CO., LLC,

            	:	 	 
	 	 	:	NASD Docket No.: 06-04871
	
                          Claimant,

            	 	:	 
	 	 	:	General
              Release
	
              -
                against -

            	 	:	 
	 	 	 	 
	
              ECO2
                PLASTICS INC., f/k/a ITEC
                ENVIRONMENTAL

              GROUP,
                INC. and GARY
                DE LAURENTIIS,

            	
              :

              :

            	 	 
	 	 	:	 
	
                              Respondents.

            	
            	:	 
	------------------------------------------------------------------------X	 	 	 

    

     

    TO
      ALL TO
      WHOM THESE PRESENTS SHALL COME OR MAY CONCERN, KNOW THAT 

    

    ECO2
      PLASTICS INC., f/k/a ITEC ENVIRONMENTAL GROUP, INC. and GARY DE LAURENTIIS
      (hereinafter
      collectively referred to as “Itec” or “Releasors”), for good and valuable
      consideration received from BREAN
      MURRAY CARRET & CO., LLC
      (hereinafter referred to as “BMC” or “Releasee”), the receipt of which is hereby
      acknowledged, covenants not to sue and hereby releases and discharges Releasee,
      Releasee’s current or former officers, directors, members, partners, employees,
      agents, affiliates, parents, subsidiaries, alter-egos, predecessors, successors
      or assigns or otherwise related entities, attorneys, and insurers, from all
      actions, causes of action, suits, debts, dues, sums of money, accounts,
      reckonings, bonds, bills, specialties, covenants, contracts, controversies,
      agreements, promises, variances, trespasses, damages, judgments, extents,
      executions, claims and demands whatsoever in law, admiralty or equity, which
      the
      Releasors, Releasors’ current or former officers, directors, members, partners,
      employees, agents, affiliates, parents, subsidiaries, alter-egos, predecessors,
      successors or assigns or otherwise related entities, attorneys, insurers, heirs,
      executors or administrators, ever had, now have or hereafter can, shall or
      may
      have from the beginning of the world to the date of this General Release,
      including but not limited to any claim, counterclaim or cause of action which
      was or could have been asserted in, or which arise from any of the facts or
      transactions that form the basis for any claim or counterclaim, set forth in
      any
      pleading filed in any action which was pending or in an arbitration entitled
      Brean Murray Carret & Co., LLC v. ECO2 Plastics Inc., f/k/a Itec
      Environmental Group, Inc. and Gary De Laurentiis, NASD Docket No.:
      06-04871.

    

    Releasors
      agree and fully understand that this is a full and final General Release
      applying to all known, unknown, anticipated and unanticipated injuries and
      damages from the beginning of the world to the date of this Release, including
      any and all claims now existing or which may arise in the future, arising out
      of
      the alleged circumstances, incidents or events set forth in the Action.
      Releasors expressly waive any right or claim of right to assert hereafter that
      any claim, demand or obligation and/or cause of action has, through ignorance,
      oversight or error, been omitted from the terms of this General Release, and
      further expressly waives any right or claim of right under the law of any
      jurisdiction that releases such as those herein given do not apply to unknown
      or
      unstated claims. 

    

    Whenever
      the text hereof requires, the use of singular number shall include the
      appropriate plural number. This General Release may not be changed
      orally.

    

    IN
      WITNESS WHEREOF, the Releasors have hereunto set their hand and seal on the
      30th
      day of
      August 2007.

     

    
      
        
          	 	 	 
	 	BREAN
                  MURRAY
                  CARRET & CO., LLC
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
William
                  J. McCluskey, President and CEO 
	 	Title 

        

        
          	 	 	 
	 	 	 
	 	
                  ECO2
                    PLASTICS INC., f/ka/ ITEC

                  ENVIRONMENTAL
                    GROUP, INC

                
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Rodney
                  Rougelot, CEO
	 	 
	 	
                  
Gary
                  De Laurentiis
	 	 

        

      

       

      
        
           

        

        
          5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]