Document:

<PAGE>

                                  EXHIBIT 4.4

                                FORM OF WARRANT
<PAGE>

     THIS STOCK SUBSCRIPTION WARRANT, AND ANY SHARES OF COMMON STOCK ACQUIRED
UPON THE EXERCISE OF THIS STOCK SUBSCRIPTION WARRANT, HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 OR ANY OTHER SECURITIES LAWS.  THIS STOCK
SUBSCRIPTION WARRANT HAS BEEN ACQUIRED FOR INVESTMENT AND NEITHER THIS STOCK
SUBSCRIPTION WARRANT NOR ANY OF SUCH SHARES MAY BE SOLD OR TRANSFERRED FOR VALUE
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION OF THEM UNDER THE SECURITIES ACT OF
1933 AND ANY OTHER APPLICABLE SECURITIES LAW, OR RECEIPT BY THE COMPANY OF AN
OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH SALE OR
TRANSFER IS EXEMPT FROM REGISTRATION UNDER SUCH ACT.  NEITHER THIS STOCK
SUBSCRIPTION WARRANT NOR ANY OF SUCH SHARES MAY BE TRANSFERRED EXCEPT UPON THE
CONDITIONS SPECIFIED IN THIS STOCK SUBSCRIPTION WARRANT, AND NO TRANSFER OF THIS
STOCK SUBSCRIPTION WARRANT OR ANY OF SUCH SHARES SHALL BE VALID OR EFFECTIVE
UNLESS AND UNTIL SUCH CONDITIONS SHALL HAVE BEEN COMPLIED WITH.

                    STOCK SUBSCRIPTION WARRANT                         No. -***-

                     To Subscribe for and Purchase Shares
                              of Common Stock of

                             Westwood Corporation

     THIS CERTIFIES THAT, for value received:

     ___________________________ is entitled to subscribe for and purchase from
Westwood Corporation, a corporation organized and existing under the laws of the
State of Nevada (the "Company"), at any time or from time to time during the
period specified in paragraph 3 hereof, up to ____________________ fully paid
and nonassessable shares of the Company's Common Stock, par value $.003 per
share (the "Common Stock"), at the Exercise Price (as hereinafter defined),
subject to adjustment from time to time pursuant to the provisions of paragraph
5 hereof.  The term "Warrants," as used herein, shall mean this Warrant,
including all amendments to this Warrant and all warrants issued in exchange,
transfer or replacement therefor.  The term "Warrant Shares," as used herein,
refers to the shares of Common Stock purchased or purchasable upon the exercise
of the Warrants.

     This Warrant is subject to the following provisions, terms and conditions:

     1.  Definitions.  For the purpose of this Warrant, the following terms
         -----------
shall have the following meanings:

                                      -1-
<PAGE>

     "Commission" shall mean the U.S. Securities and Exchange Commission or any
      ----------
other governmental authority at the time administering the Securities Act.

     "Common Stock" shall have the meaning specified in the introduction to this
      ------------
Warrant.

     "Company" shall have the meaning specified in the introduction to this
      -------
Warrant.

     "Exercise Agreement" shall have the meaning specified in paragraph 2
      ------------------
hereof.

     "Exercise Price" shall mean $1.00 per share.
      --------------

     "Securities Act" shall mean the Securities Act of 1933, as amended, or any
      --------------
similar or successor federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.
Reference to a particular section of the Securities Act shall include a
reference to the comparable section, if any, of any such similar or successor
federal statute.

     "Warrant(s)" shall have the meaning specified in the introduction to this
      ----------
Warrant.

     "Warrant Shares" shall have the meaning specified in the introduction to
      --------------
this Warrant.

     2.  Manner of Exercise; Issuance of Certificates; Payment for Shares; No
         --------------------------------------------------------------------
Fractional Shares.  The rights represented by this Warrant may be exercised by
-----------------
the holder hereof, in whole or in part, by the surrender of this Warrant,
together with a completed Exercise Agreement in the form attached hereto
("Exercise Agreement"), during normal business hours on any business day at the
principal office of the Company (or such other office or agency of the Company
as it may designate by notice in writing to the holder hereof at the address of
such holder appearing on the books of the Company) at any time during the period
set forth in paragraph 3 hereof and upon payment to the Company by certified
check or bank draft in an amount equal to the Exercise Price for the Warrant
Shares to be purchased in connection with such exercise.  The Company agrees
that the shares so purchased shall be and are deemed to be issued to the holder
hereof or its designee (subject to the transfer restrictions applicable to this
Warrant and to shares purchased upon exercise of this Warrant) as the record
owner of such shares as of the close of business on the date on which this
Warrant shall have been surrendered and payment made for such shares as
aforesaid.

     Certificates for the Warrant Shares so purchased, representing the
aggregate number of shares specified in said Exercise Agreement, shall be
delivered to the holder hereof within a reasonable time, not exceeding five (5)
business days, after the rights represented by this Warrant shall have been so
exercised.  The stock certificate or certificates so delivered shall be in such
denominations as may be requested by the holder hereof and shall be registered
in the name of said holder or such other name as shall be designated by said
holder (subject to the transfer restrictions applicable to this Warrant and to
shares purchased upon exercise of this Warrant).  If this Warrant shall have
been exercised only in part, then, unless this Warrant has expired, the Company
shall, at its expense, at the time of delivery of said stock certificate(s),
deliver to said

                                      -2-
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holder a new Warrant representing the right to purchase the number of shares of
Common Stock with respect to which this Warrant shall not then have been
exercised. The Company shall pay all taxes and other expenses and charges
payable in connection with the preparation, execution and delivery of stock
certificates (and any new Warrants) pursuant to this paragraph 2 except that, in
case such stock certificates shall be registered in a name or names other than
the holder of this Warrant or such holder's nominee, funds sufficient to pay all
stock transfer taxes which shall be payable in connection with the execution and
delivery of such stock certificates shall be paid by the holder hereof to the
Company at the time of the delivery of such stock certificates by the Company as
mentioned above.

     The holder of this Warrant may exercise this Warrant by surrendering it to
the Company to purchase a number of shares of Common Stock equal to the number
of such shares then purchasable upon exercise hereof less the number of such
shares equal to the quotient of the aggregate exercise price of all such shares
underlying this Warrant divided by the Fair Market Price per Share.  Fair Market
Price per Share shall mean the average of the closing sales prices, if
available, or the average of the bid and asked prices for the Common Stock (or
its successor), on the principal market therefor for the five trading days
preceding the day which is two business days prior to the day of exercise, or if
no such price is available, as determined by the Board of Directors of the
Company.

     This Warrant shall be exercisable only for a whole number of Warrant Shares
unless this Warrant is being exercised in full.  No fractions of shares of
Common Stock, or scrip for any such fractions of shares, shall be issued upon
the exercise of this Warrant.  Instead, the Company shall pay a cash adjustment
in respect of such fractional interest in an amount equal to the fair market
value of such fractional interest as determined by the Company's Board of
Directors.

     3.  Period of Exercise.  This Warrant is exercisable at any time or from
         ------------------
time to time during the period from the date of issue hereof until the date five
years from the date hereof.

     4.  Shares to be Fully Paid; Reservation of Shares.  The Company covenants
         ----------------------------------------------
and agrees that all Warrant Shares will be duly authorized and validly issued
and, upon issuance in accordance with the terms and conditions hereof, will be
fully paid and nonassessable and free from all taxes, liens and charges with
respect to the issue thereof.  Without limiting the generality of the foregoing,
the Company covenants and agrees that it will from time to time take all such
action as may be requisite to assure that the par value per Warrant Share is at
all times equal to or less than the Exercise Price then in effect.  The Company
further covenants and agrees that, during the period within which the rights
represented by this Warrant may be exercised, the Company will at all times have
authorized, and reserved for the purpose of issue upon exercise of the
subscription rights evidenced by this Warrant, a sufficient number of shares of
Common Stock to provide for the exercise of the rights represented by this
Warrant and the other Warrants, if any.

     5.  Anti-dilution Provisions.  The number, rights and privileges of the
         ------------------------
shares of Common Stock issuable upon exercise of this Warrant shall be subject
to the following adjustments:

                                      -3-
<PAGE>

          (a) Adjustment for Change in Capital Stock.  In case the Company shall
              --------------------------------------
     at any time after the date of this Warrant (i) pay a dividend or make a
     distribution on the outstanding Common Stock payable in shares of Common
     Stock or other shares of its capital stock, (ii) subdivide the outstanding
     Common Stock into a greater number of shares, (iii) combine the outstanding
     Common Stock into a smaller number of shares, or (iv) issue any shares of
     its capital stock by reclassification of the Common Stock (including any
     such reclassification in connection with a consolidation or merger in which
     the Company is the continuing corporation), then, in each case, the
     exercise rights of the holder hereof, in effect immediately prior to such
     action shall be adjusted so that the holder of this Warrant thereafter
     converted may receive the number of shares of Common Stock of the Company
     which such holder would have owned immediately following such action if
     such holder had converted this Warrant immediately prior to such action.
     The adjustment shall become effective immediately after the record date in
     the case of a dividend or distribution and immediately after the effective
     date in the case of a subdivision, combination or reclassification.  Such
     adjustment shall be made successively whenever any event listed above shall
     occur.

          (b) Notice of Adjustment.  Whenever there shall be an adjustment as
              --------------------
     provided in this Section 5, the Company shall promptly cause written notice
     thereof to be sent by registered mail, postage prepaid, to the holder, at
     its address on the records of the Company, which notice shall be
     accompanied by an officer's certificate setting forth the nature of such
     adjustment and setting forth a brief statement of the facts requiring such
     adjustment and the computation thereof, which officer's certificate shall
     be conclusive evidence of the correctness of any such adjustment absent
     manifest error.

          (c) Consolidation; Merger; Reclassification.
              ---------------------------------------

               (i) In case of any consolidation with or merger of the Company
          with or into another corporation (other than a merger or consolidation
          in which the Company is the surviving or continuing corporation), or
          in case of any sale, lease, or conveyance to another corporation of
          the property and assets of any nature of the Company as an entirety or
          substantially as an entirety, such successor, leasing, or purchasing
          corporation, as the case may be, shall (x) execute with the holder an
          agreement providing that the holder shall have the right thereafter to
          receive upon exercise of this Warrant solely the kind and amount of
          shares of stock and other securities, property, cash, or any
          combination thereof receivable upon such consolidation, merger, sale,
          lease, or conveyance by a holder of the number of shares of Common
          Stock into which this Warrant might have been exercised immediately
          prior to such consolidation, merger, sale, lease, or conveyance and
          (y) make effective provision in its certificate of incorporation or
          otherwise, if necessary, to effect such agreement.  Such agreement
          shall provide for adjustments which shall be as nearly equivalent as
          practicable to the adjustments in this Section 5.

                                      -4-
<PAGE>

               (ii) In case of any reclassification or change of the shares of
          Common Stock issuable upon exercise of this Warrant (other than a
          change in par value or from no par value to a specified par value, or
          as a result of a subdivision or combination, but including any change
          in the shares into two or more classes or series of shares), or in
          case of any consolidation or merger of another corporation into the
          Company in which the Company is the continuing corporation and in
          which there is a reclassification or change (including a change to the
          right to receive cash or other property) of the shares of Common Stock
          (other than a change in par value, or from no par value to a specified
          par value, or as a result of a subdivision or combination, but
          including any change in the shares into two or more classes or series
          of shares), the holder shall have the right thereafter to receive upon
          exercise of this Warrant solely the kind and amount of shares of stock
          and other securities, property, cash, or any combination thereof
          receivable upon such reclassification, change, consolidation, or
          merger by a holder of the number of shares of Common Stock into which
          this Warrant might have been exercised immediately prior to such
          reclassification, change, consolidation, or merger.  Thereafter,
          appropriate provision shall be made for adjustments which shall be as
          nearly equivalent as practicable to the adjustments in Section 5(a)
          above.

               (iii)  The above provisions of this Section 5(c) shall similarly
          apply to successive reclassifications and changes of shares of Common
          Stock and to successive consolidations, mergers, sales, leases, or
          conveyances.

          (d) Notice of Certain Transactions.  In case at any time the Company
              ------------------------------
     shall propose

               (i) to pay any dividend or make any distribution on shares of
          Common Stock in shares of Common Stock or make any other distribution
          to all holders of Common Stock;

               (ii) to issue any rights, warrants, or other securities to all
          holders of Common Stock entitling them to purchase any additional
          shares of Common Stock or any other rights, warrants, or other
          securities; or

               (iii)  to effect any reclassification or change of outstanding
          shares of Common Stock, or any consolidation, merger, sale, lease, or
          conveyance of property, described in Section 5(c); or

               (iv) to effect any liquidation, dissolution, or winding-up of the
          Company; or

               (v) to take any other action which would cause an adjustment to
          the Exercise Price;

                                      -5-
<PAGE>

     then, and in any one or more of such cases, the Company shall give written
     notice thereof, by registered mail, postage prepaid, to the holder at the
     holder's address as it shall appear in the records of the Company mailed at
     least 15 days prior to (i) the date as of which the holders of record of
     shares of Common Stock to be entitled to receive any such dividend,
     distribution, rights, warrants, or other securities are to be determined,
     (ii) the date on which any such reclassification, change of outstanding
     shares of Common Stock, consolidation, merger, sale, lease, conveyance of
     property, liquidation, dissolution, or winding-up is expected to become
     effective, and the date as of which it is expected that holders of record
     of shares of Common Stock shall be entitled to exchange their shares for
     securities or other property, if any, deliverable upon such
     reclassification, change of outstanding shares, consolidation, merger,
     sale, lease, conveyance of property, liquidation, dissolution, or winding-
     up, or (iii) the date of such action which would require an adjustment to
     the Exercise Price.

     6.  Certain Agreements of the Company.  The Company covenants and agrees
         ---------------------------------
that:

          (a) Certain Actions Prohibited.  The Company will not, by amendment of
              --------------------------
     its Certificate of Incorporation or through any reorganization, transfer of
     assets, consolidation, merger, dissolution, issue or sale of securities or
     any other voluntary action, avoid or seek to avoid the observance or
     performance of any of the terms to be observed or performed hereunder by
     the Company, but will at all times in good faith assist in the carrying out
     of all the provisions of this Warrant and in the taking of all such action
     as may reasonably be requested by the holder of any Warrant in order to
     protect the exercise privilege of the holders of the Warrants against
     dilution or other impairment, consistent with the tenor and purpose of this
     Warrant.

          (b) Successors and Assigns.  This Warrant will be binding upon any
              ----------------------
     entity succeeding to the Company by merger, consolidation or acquisition of
     all or substantially all of the Company's assets.

     7.  Issue Tax.  The issuance of certificates for Warrant Shares upon the
         ---------
exercise of Warrants shall be made without charge to the holders of such
Warrants or such shares for any issuance tax in respect thereof, provided that
the Company shall not be required to pay any tax which may be payable in respect
of any transfer involved in the issuance and delivery of any certificate in a
name other than that of the holder of the Warrant exercised.

     8.  Closing of Books.  The Company will at no time close its transfer books
         ----------------
against the transfer of any Warrant, of any Warrant Shares issued or issuable
upon the exercise of any Warrant, or in any manner interfere with the timely
exercise of this Warrant.

     9.  No Rights or Liabilities as a Stockholder.  This Warrant shall not
         -----------------------------------------
entitle the holder hereof to any voting rights or other rights as a stockholder
of the Company.  No provision of this Warrant, in the absence of affirmative
action by the holder hereof to purchase Warrant Shares, and no mere enumeration
herein of the rights or privileges of the holder hereof, shall give rise to

                                      -6-
<PAGE>

any liability of such holder for the Exercise Price or as a stockholder of the
Company, whether such liability is asserted by the Company or by creditors of
the Company.

     10.  Transfer and Exchange.
          ---------------------

          (a) No Transfer of Warrant.  This Warrant may not be offered, sold,
              ----------------------
     pledged or otherwise transferred in any manner whatsoever.

          (b) Transfer of Warrant Shares.  The Warrant Shares may not be
              --------------------------
     offered, sold, pledged or otherwise transferred, except in compliance with
     the restrictions set forth on the front page hereof.

          (c) Warrant Exchangeable for Different Denominations.  This Warrant is
              ------------------------------------------------
     exchangeable, upon the surrender hereof by the holder hereof at the
     principal office of the Company (or such other office or agency of the
     Company as it may designate by notice in writing to the holder hereof), for
     new Warrants of like tenor representing in the aggregate the right to
     subscribe for and purchase the number of shares of Common Stock which may
     be subscribed for and purchased hereunder, each of such new Warrants to
     represent the right to subscribe for and purchase such number of shares as
     shall be designated by said holder hereof at the time of such surrender.

          (d) Replacement of Warrant.  Upon receipt of written notice from the
              ----------------------
     holder hereof or other evidence reasonably satisfactory to the Company of
     the loss, theft, destruction or mutilation of this Warrant and, in the case
     of any such loss, theft or destruction, upon delivery of indemnity
     reasonably satisfactory to the Company, or, in the case of any such
     mutilation, upon surrender and cancellation of such Warrant, the Company
     will execute and deliver, in lieu thereof, a new Warrant of like tenor.

          (e) Cancellation; Payment of Expenses.  Upon the surrender of this
              ---------------------------------
     Warrant in connection with any exchange, transfer or replacement as
     provided in this paragraph 10, this Warrant shall be promptly cancelled by
     the Company.  The Company shall pay all taxes (other than securities
     transfer taxes) and all other expenses and charges payable in connection
     with the preparation, execution and delivery of Warrants pursuant to this
     paragraph 10.

          (f) Legend.  Except where a certificate for Warrant Shares is issued
              ------
     in connection with a distribution of such shares pursuant to a registration
     statement under the Securities Act, each certificate for Warrant Shares
     initially issued upon the exercise of this Warrant and each certificate for
     shares of capital stock of the Company issued to any subsequent transferee
     of any such certificate shall bear the following legend:

          THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
          U.S. SECURITIES ACT OF 1933 OR ANY OTHER SECURITIES LAWS.  THESE
          SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD OR

                                      -7-
<PAGE>

          TRANSFERRED FOR VALUE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION OF
          THEM UNDER THE SECURITIES ACT OF 1933 AND ANY OTHER APPLICABLE
          SECURITIES LAW, OR RECEIPT BY THE CORPORATION OF AN OPINION OF COUNSEL
          OR OTHER EVIDENCE ACCEPTABLE TO THE CORPORATION THAT SUCH SALE OR
          TRANSFER IS EXEMPT FROM REGISTRATION UNDER SUCH ACT.

     11.  Notices.  All notices and other communications required or permitted
          -------
hereunder shall be in writing, and shall be deemed to have been delivered on the
date delivered by hand, telegram, facsimile or by similar means, on the next day
following the day when sent by recognized courier or overnight delivery service
(fees prepaid), or on the third (3rd) day following the day when deposited in
the mail, registered or certified (postage prepaid), addressed:  (i) if to the
holder hereof or any other holder of any Warrants, at the registered address of
the holder hereof or such other holder as set forth in the register kept by the
Company at its principal office with respect to the Warrants, or to such other
address as the holder hereof or such other holder may have designated to the
Company in writing, and (ii) if to the Company, 12402 East 60th Street, Tulsa,
Oklahoma 74146, or to such other address or addresses as the Company may have
designated in writing to the holder hereof and each other holder of any of the
Warrants at the time outstanding; provided, however, that any such communication
to the Company may also, at the option of the holder hereof, be either delivered
to the Company at its address set forth above or to any officer of the Company.

     12.  Governing Law.  This Warrant shall be construed and enforced in
          -------------
accordance with, and the rights of the parties shall be governed by, the laws of
the State of Nevada, without regard to principles of conflicts of laws.

     13.  Remedies.  The Company stipulates that the remedies at law of the
          --------
holder hereof in the event of any default or threatened default by the Company
in the performance of or compliance with any of the terms of this Warrant are
not and will not be adequate, and that such terms may be specifically enforced
by a decree for the specific performance of any agreement contained herein or by
an injunction against a violation of any of the terms hereof or otherwise.

     14.  Miscellaneous.
          -------------

          (a) Amendments.  This Warrant and any provision hereof may be changed,
              ----------
     waived, discharged or terminated, but only by an instrument in writing
     signed by the party (or any predecessor in interest thereof) against whom
     enforcement of the same is sought.

          (b) Descriptive Headings.  The descriptive headings of the several
              --------------------
     paragraphs of this Warrant are inserted for purposes of reference only, and
     shall not affect the meaning or construction of any of the provisions
     hereof.

                                      -8-
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Stock Subscription Warrant
to be signed by its duly authorized officer this 23rd day of December, 1999.

                                    WESTWOOD CORPORATION

                                    By: ________________________________
                                         Ernest H. McKee
                                         President

                                      -9-
<PAGE>

                          FORM OF EXERCISE AGREEMENT

                                                        _______________,____

Westwood Corporation

Attention:  President

     The undersigned, pursuant to the provisions set forth in the within Stock
Subscription Warrant, hereby agrees to subscribe for and purchase __________
shares of Common Stock covered by such Stock Subscription Warrant, and makes
payment herewith in full therefor at the price per share provided by such Stock
Subscription Warrant in cash.  The undersigned is acquiring such shares for the
purpose of investment and not with a view to or for sale in connection with any
distribution thereof.

                              Signature: _____________________________
                              Company: _______________________________
                              Name: __________________________________
                              Title: _________________________________
                              Address: _______________________________

                                      -10-<PAGE>

                                 EXHIBIT 10.14

                   STILLWATER NTIONAL BANK AND TRUST COMPANY
                           OF STILLWATER, OKLAHOMA,

                                LOAN AGREEMENT
                             Dated August 13, 1999
<PAGE>

                                LOAN AGREEMENT

     THIS AGREEMENT, made and entered into the 13th day of August, 1999, by and
between STILLWATER NATIONAL BANK AND TRUST COMPANY OF STILLWATER, OKLAHOMA, a
National Banking Corporation (hereinafter referred to as "Bank"), WESTWOOD
CORPORATION, a Nevada Corporation (hereinafter referred to as "Westwood"), TANO
CORP., a Louisiana corporation (hereinafter referred to as "TANO"), NMP CORP.,
an Oklahoma corporation (hereinafter referred to as "NMP"), and MC II ELECTRIC
COMPANY, a Texas corporation (hereinafter referred to as "MC II") (collectively
Westwood, TANO, NMP and MC II are hereinafter referred to as "Debtor").

     In consideration of the mutual promises herein contained, the parties
hereby agree as follows:

                                 I.  TERM LOAN

     1.1 Subject to the terms and conditions of this Agreement, Bank to loan,
and the Debtor agrees to borrow Two Million and NO/100 Dollars ($2,000,000.00)
for the purpose of refinancing the Corporation's existing equipment (hereinafter
referred to as "Term Loan").

     1.2  The Term Loan shall be evidenced by and payable with interest on the
terms set forth in a Promissory Note of the Debtor (hereinafter referred to as
"Term Note"), payable to the order of the Bank with interest in the form and
with the provisions set forth in Exhibit "A" attached hereto.

     1.3  All of the proceeds of the Term Note will be advanced to Debtor in
cash at Closing, which proceeds will be used by the Debtor to pay off its
existing loan on the Debtor's equipment at NationsBank, N.A.

     1.4  The Debtor may prepay the Term Note at any time without premium or
penalty.

                            II.  THE REVOLVING LOAN

     2.1  Subject to the terms and conditions of this Agreement, Debtor shall
have the right from time to time, prior to the Termination Date, to borrow and,
upon repayment, reborrow from the Bank amounts not at any one time in the
aggregate principal balance exceeding the lesser of (i) the Borrowing Base
determined as of the date of borrowing, or (ii) Two Million and No/100 Dollars
($2,000,000.00) (hereinafter referred to as "Revolving Loan"). For these
purposes:

     (a)  "Termination Date" means August 13, 2000.

     (b)  "Borrowing Base" means, as of any given date, the sum of the following
     factors: (1) eighty percent (80%), or at the Bank's sole discretion any
     lesser percentage designated upon forty five (45) days notice, of Eligible
     Trade Accounts Receivable of TANO, MC II and NMP; plus (2) eighty percent
     (80%) of the government progress payments being held by TANO, MC II and
     NMP, up to a maximum amount of Three Hundred Thousand Dollars

                                       1
<PAGE>

     ($300,000.00); and plus (3) fifty percent (50%) of the value of the
     inventory of TANO, MC II and NMP.

     (c)  "Trade Accounts Receivable" means, as of any given date, all accounts
     receivable of TANO, MC II and NMP for goods sold and delivered and services
     rendered by TANO, MC II and NMP in the ordinary course of the business
     presently conducted by each of them and representing amounts then invoiced
     and due and owing, and a Trade Account Receivable shall be an "Eligible
     Trade Account Receivable", and shall be included in the Borrowing Base,
     only if and so long as it meets each and all of the following requirements:

          (1)  It is a valid, genuine and legally enforceable obligation,
          subject to no defense, set off or counter-claim, of the account debtor
          or other obligor named herein or in the TANO, MC II and/or NMP's
          records pertaining thereto, and that neither TANO, MC II nor NMP has
          received from the account debtor or other obligor any notification
          repudiating such obligation or asserting that such obligation is
          subject to any defense, set off or counterclaim; and

          (2)  It is owned by the either TANO, MC II or NMP free and clear of
          all interests, liens, attachments, encumbrances and security interests
          except the security interest granted to the Bank pursuant to this
          Agreement; and

          (3)  The Account debtor or other obligor is located in the United
          States or Canada; and

          (4)  Not more than ninety (90) days have expired since the date of
          invoice; or, if the Bank in its sole discretion accepts as Eligible a
          Trade Account Receivable which is due on a date stated in the invoice,
          not more than thirty (30) days have expired since the date stated; and

          (5)  Neither TANO, MC II nor NMP has received notice from the Bank
          that the credit of the account debtor is not satisfactory to the Bank
          for any reason; and

          (6)  The account debtor is not an entity in which the any of the
          Debtors have a controlling interest; and

          (7)  Eligible Trade Accounts Receivable shall not include any account
          receivable of the same account debtor to any of the Debtors in excess
          of twenty five percent (25%) of the then Eligible Trade Accounts
          Receivable calculated after excluding this debtor's Eligible Trade
          Accounts Receivable; and

          (8)  The entire receivable of one account debtor becomes ineligible if
          more than ten percent (10%) of the total due is over ninety (90) days
          past due, unless the ten percent (10%) over ninety (90) days is
          attributable to an isolated dispute over a specific invoice.

                                       2
<PAGE>

     (d)  The value of Inventory used in determining the Borrowing Base shall
     equal the value of raw material plus the value of finished product and
     shall not include the value of any work in progress.

     In addition to the eligibility requirements set forth in clause (c) of this
Section 2.1, the Bank shall have the right (acting at its sole discretion with
or without the consent of the Debtor) from time to time by written notice to
Debtor to establish additional or further eligibility requirements and to change
in any manner the eligibility requirements set forth in said clauses or so
established, and if at any time any Receivables fail to meet all the eligibility
requirements set forth in clause (c) of this Section 2.1 or established or
changed from time to time by the Bank, they shall immediately be excluded from
the Borrowing Base. Pursuant to this Agreement, the Bank is granted collateral
security in addition to Eligible Trade Accounts Receivable and Inventory.
Notwithstanding any apportionment or segregation of collateral made by the Bank
for purposes of determining the Borrowing Base, all collateral granted to the
Bank pursuant to this Agreement and all other collateral rights, interests and
properties now or at any time hereafter available to the Bank, shall secure and
may be applied to pay any or all indebtedness of the Debtor secured thereby, in
any manner or order of application and without regard to any such apportionment
or segregation.

     2.2  All loans made by the Bank under this Agreement for the Revolving Loan
shall be evidenced by and payable with interest on the teems set forth in a
Promissory Note of Debtor ("Revolving Note") payable to the order of the Bank
with interest in the form and with the provisions set forth in Exhibit "B"
attached hereto. The Bank is hereby authorized, but shall not be required, to
make notations of advances by it to the Debtor and payments to it by the Debtor
on the reverse side of the Note. Such notations, or the entries on any liability
ledger records maintained by or for the Bank as to indebtedness of Debtor, shall
be presumed correct until the contrary is established by Debtor. Upon demand by
the Bank at any time or from time to time, the Debtor will confirm and admit by
signed writing the exact amount of indebtedness for principal and interest then
outstanding under this Agreement. Any billing statement or accounting rendered
by or for the Bank shall be conclusive and fully binding on Debtor unless
specific written notice of exception is given to the Bank by Debtor within
thirty (30) days thereafter.

     2.3  Advances under the Revolving Note will be limited to the Borrowing
Base. A request for advance shall be submitted upon a signed "Borrowing Base
Calculation/No Default Certification/Draw Request in form as is shown on Exhibit
"C" attached hereto. Each request for advance will be supported by a current
accounts receivable aging, and such other documentation that may reasonably
required by the Bank to determine the Borrowing Base.

     2.4  The Debtor may prepay the Revolving Note at any time, without premium
or penalty. If at any time the aggregate outstanding principal balance of all
loans under this Agreement exceeds the then amount of the Borrowing Base, the
Debtor shall immediately, without notice or demand, prepay the Note in an amount
equal to the excess.

     2.5  The Bank may make loans in any amount and in any manner requested
orally or in writing by any officer or agent of the Debtor or by any person
reasonably believed by the Bank to be

                                       3
<PAGE>

an officer or agent of the Debtor. Loan proceeds may be disbursed by deposit in
any deposit account of the Debtor, by an instrument payable to Borrower.

     2.6 The Debtor will use the proceeds of all loans under this Agreement
solely for lawful and authorized corporate purposes in furtherance of the
business presently conducted by the Debtor.

                                III.  INTEREST

     3.1  The Term Note and the Revolving Note shall be collectively referred to
as the "SNB Notes."

     3.2  Each of the SNB Notes shall bear interest at the "Contract Rate",
which is defined as the "Base Rate" plus the "Applicable Margin."

     3.3  The Base Rate shall equal the lowest base rate on corporate loans
posted by at least seventy five (75%) of the nation's thirty (30) largest banks
as published in the money rates section of the southwest edition of the Wall
                                                                        ----
Street Journal. If the Base Rate becomes unavailable during the term of either
--------------
of the SNB Notes, Bank may designate a substitute index after notifying Debtor.
Bank will inform Debtor what the current Base Rate is at any time during the
term of either of the SNB Notes. The Base Rate will not change more often than
once each day.

     3.4  The Applicable Margin shall be determined by the ratio of Debtor's Net
Income plus Depreciation Expense plus Interest on all Debt Service to the
Debtor's "Total Debt Service" (hereinafter referred to as the "Debt Service
Coverage"). Total Debt Service shall include all of the payments due on the SNB
Notes, as well as payments due on the One Million and No/100 Dollars
($1,000,000.00) loan ("Subordinated Debt") which the Debtor is required to
obtain pursuant to the terms of this Agreement.

     3.5  The Applicable Margin shall equal:

              When Debt Service Coverage is:     Applicable Margin is:
              -----------------------------      --------------------
              1.5 or less                        3/4 of 1%

              More than 1.5 but less than 1.75   2 of 1%

              More than 1.75                     1/4 of 1%

     3.6  The Debt Service Coverage will be determined at the end of each of the
Debtor's fiscal year quarters. The Debtor will provide the Bank with information
acceptable ("Margin Information") to the Bank within forty-five (45) days after
the close of each of its fiscal year's quarter which will allow the to determine
the Applicable Margin. The determination of the Applicable Margin shall be
effective with respect to the SNB Notes as of the fifth business day immediately
following delivery of the Margin Information.  In the event that the Margin
Information is not delivered in a timely fashion, the Applicable gin shall be
the highest Applicable Margin effective on the fifth day after written notice to
the Bank was due hereunder and continuing until the

                                       4
<PAGE>

Margin Information is delivered to Bank, whereupon in the latter event any
required change to the Applicable Margin shall be effective with respect to the
SNB Notes commencing as of the fifth day of business immediately following
delivery of such Margin Information.

                           IV.  CONDITIONS PRECEDENT

     4.1  The Bank's obligation to make any loan to the Debtor under the SNB
Notes shall be subject to the terms and conditions of this Agreement and the
following conditions precedent:

     (a)  Each representation and warranty set forth in Section 8.1 shall be
     true and correct as of the date of borrowing, except for changes subsequent
     to the date of this Agreement caused by transactions permitted under the
     terms of this Agreement; and

     (b)  There shall not exist any Event of Default under section 5.1 of this
     Agreement or any event which, with the giving of notice or the lapse of
     time (or both) would become an Event of Default thereunder; and

     (c)  The Debtor shall have delivered to the Bank:

          (1)  The Term Note duly executed by Debtor.

          (2)  The Revolving Note duly executed by Debtor.

          (3)  A Security Agreement, in form and substance satisfactory to the
          Bank, granting the Bank security interests in all present and future
          equipment, inventory, and accounts receivable of the Debtor.

          (4) Copies of resolutions of the directors of each of the Debtors,
          authorizing the execution, delivery and performance of this Agreement,
          the SNB Notes, and the Security Agreement.

          (6) A copy of the Articles of Incorporation of each of the Debtors and
          a Certificate of Good Standing as to each of the Debtors, issued by
          the Secretary of State of the State of the Debtor's incorporation; a
          copy of the Certificate of Good Standing as to the Debtor issued by
          the Secretary of State of the State of Oklahoma, and a copy of the By-
          laws of the Debtor.

          (7) All collateral schedules, financing statements, security interest,
          subordination agreements, releases and termination statements which
          the Bank may request to assure the creation, perfection and priority
          of the security interests created by the Security Agreement.

          (8)  Lock Box Agreement in form and substance satisfactory to the
          Bank, defining how payments of each of the Debtor's accounts
          receivable are to be paid and accounted for.

                                       5
<PAGE>

          (9)  An appraisal of the Debtor's equipment which is satisfactory to
          the Bank.

                      V.  REPRESENTATIONS AND WARRANTIES

     5.1  Debtor represents and warrants to the Bank that:

     (a)  Each Debtor is a corporation duly organized, existing and in good
     standing under the laws of the State of its incorporation. It has the
     corporate power to own its property and to carry on its business as now
     conducted and is duly qualified to do business in all states in which such
     qualification is require.

     (b)  Each Debtor is duly authorized and empowered to execute, deliver and
     perform this Agreement, the Note, and the Security Agreement, and to borrow
     money from the Bank.

     (c)  The execution and delivery of this Agreement, the SNB Notes, and the
     Security Agreement, and the performance by the Debtor of its obligation
     thereunder, do not and will not conflict with any provision of law or the
     Articles of Incorporation or By-Laws of any Debtor or of any agreement
     binding upon it.

     (d)  The execution and delivery of this Agreement, the SNB Notes, and
     Security Agreement have been duly authorized by all necessary corporate
     action of the directors and shareholders of each Debtor; and this
     Agreement, the SNB Notes, and the Security Agreement have in fact been duly
     executed and delivered by the Debtor and constitute its lawful and binding
     obligations, legally enforceable against it in accordance with their
     respective terms.

     (e)  No litigation, tax claims or governmental proceedings are pending or
     are threatened against the Debtor, and no judgment or order of any court or
     administrative agency is outstanding against the Debtor, which will have a
     material adverse affect on the Debtor.

     (f)  The transaction evidenced by this Agreement does not violate any usury
     law or other law relating to the payment of interest on loans.

     (g)  The authorization, execution, delivery and performance of this
     Agreement, the SNB Notes and the Security Agreement are not and will not be
     subject to the jurisdiction, approval or consent of, or to any requirement
     of registration with or notification to, any federal, state or local
     regulatory body or administrative agency.

     (h)  When the financing statement heretofore signed by the Debtor is filed
     in the proper office where the particular collateral is located, the Bank
     will have a valid and perfected first security interest in the collateral
     described in the Security Agreement, subject to no prior security interest,
     assignment, lien or encumbrance (except interests, if any, specifically
     approved by the Bank in writing).

                                       6
<PAGE>

     (i)  All assets of the Debtor are free and clear of all liens, security
     interests and encumbrances, except those specifically permitted by Bank.

     (j)  Each Debtor has filed all federal and state tax returns which are
     required to be filed, and all taxes shown as due thereon have been paid.

     (k)  Financial statements furnished to the Bank were prepared in accordance
     with generally accepted accounting principles consistently maintained,
     except as expressly therein set forth. They present fairly the financial
     condition of the Debtor as of the dates thereof. The annual reports
     disclose fully all liabilities of the Debtor whether or not contingent,
     with respect to any pension plan. Since the date of the most recent
     financial statement, there has been no material adverse change in the
     financial condition of the Debtor.

     (l)  Each qualified retirement plan of the Debtor presently conforms and is
     administered in a manner consistent with the Employee Retirement Income
     Security Act of 1974.

     (n)  All books and records pertaining to the accounts of Debtor will be
     located in Tulsa, Oklahoma.

                          VI.  AFFIRMATIVE COVENANTS

     6.1 The Debtor covenants and agrees that it will:

     (a)  Pay all taxes, assessments and governmental charges prior to the time
     when any penalties or interest accrue, unless contested in good faith with
     an adequate reserve for payment.

     (b)  Continue the conduct of its business; maintain its corporate existence
     in good standing; maintain all rights, licenses and franchises; comply with
     all applicable laws and regulations.

     (c)  Maintain its property in good working order and condition; make all
     needful and proper repairs, replacements, additions and improvements
     thereto.

     (d)  Deliver to the Bank and to any participant designated by the Bank:

              (1)  Beginning September 30,1999, quarterly balance sheet and
              income statements to be delivered thirty (30) days after its due
              date.

              (2)  Beginning March 31, 2000, annual audited financial
              statements, to be delivered within ninety (90) days after its due
              date.

              (3)  Beginning August 31, 1999, monthly Accounts Receivable
              Aging/Listings and Borrowing Base, and inventory listing, to be
              delivered fifteen (15) days after the end of each month.

                                       7
<PAGE>

              (4)  Debtor's 1999 Federal Income Tax Return and annually
              thereafter, to be delivered ten (10) days after its filing..

     (e)  Within ninety (90) days of the execution of this Agreement, Westwood
     will incur the Subordinated Debt, with a Lender of its choice. However,
     prior to incurring the Subordinated Debt, Westwood will submit the
     instruments to evidence the Subordinated Debt to Bank for its review and
     approval, which approval will not be unreasonably withheld.

     (f)  Within ninety (90) days of the execution of this Agreement, the Debtor
     will achieve a "Leverage Ratio" of no greater than 4.0 to 1.0. The Debtor
     will provide the Bank within forty-five (45) days after the close of each
     of its fiscal year's quarter with information reasonably needed by the Bank
     to determine the Leverage Ratio. As used herein, Leverage Ratio shall be
     defined as the ratio of the Debtor's total liabilities less the
     Subordinated Debt to the Debtor's tangible Net Worth plus the Subordinated
     Debt.

     (g)  Within ninety (90) days of the execution of this Agreement, the Debtor
     will achieve a "Liquidity Ratio" of 1.25 to 1.0. The Debtor will provide
     the Bank with within forty-five (45) days after the close of each of its
     fiscal year's quarter information reasonably needed by the Bank to
     determine the Liquidity Ratio. As used herein, Liquidity Ratio shall be
     defined as the ratio of the Debtor's current assets to the Debtor's current
     liabilities.

     (h)  Permit any officer, employee, attorney or accountant for the Bank or
     for any participant designated by the Bank, to review, make extracts from,
     or copy any and all of its corporate and financial books, records and
     properties of the Debtor at all times during ordinary business hours.

     (i)  Maintain property, liability, workman's compensation and other forms
     of insurance in amounts designated at any time or from time to time by the
     Bank.

     (j)  Not change any of the Debtor's senior management without the Bank's
     prior approval.

     (k)  Do, make, procure, execute and deliver at its expense all acts,
     things, writings and assurances which the Bank may at any time reasonably
     request in order to protect, assure, or enforce the interests, rights and
     remedies of the Bank created by, provided in or emanating from this
     Agreement, and the Security Agreement.

     6.2  The Debtor further covenants and agrees that it will notify the Bank
in writing promptly, and in any event within five (5) business days, in the
event of the occurrence of any Event of Default defined or described in Section
8.1 or the occurrence of any event which, with the giving of notice or lapse of
time (or both), would become such an Event of Default.

                                       8
<PAGE>

                           VII.  NEGATIVE COVENANTS

     7.1 The Debtor covenants and agrees that it will not without the express
written consent of the Bank:

     (a)  Become or remain liable in any manner in respect of any indebtedness
     or contractual liability (including, without limitation, notes, bonds,
     debentures, loans, guaranties, and pension liabilities, whether or not
     contingent and whether or not subordinated), except:

             (1)  Indebtedness arising under this Agreement;

             (2)  Indebtedness arising under the Subordinated Debt;

             (3)  Presently outstanding unsecured indebtedness, if any, to the
             extent disclosed in the financial statements identified in Section
             4.1(1);

             (4)  Unsecured indebtedness, other than for money borrowed or for
             the purchase of a capital asset, incurred in the ordinary course of
             its business, which becomes due and must be fully satisfied within
             twelve (12) months after the date on which it is incurred;

             (5) Unsecured indebtedness subordinated in right of payment to all
             indebtedness owed to the Bank pursuant to a debt subordination
             agreement accepted or approved in writing by the Bank;

     (b)  Create, incur or cause to exist any mortgage, security interest,
     encumbrance, lien or other charge of any kind upon any of its property or
     assets, whether now owned or hereafter acquired, except:

             (1)  The security interests created by the Security Agreement;

             (2)  Security interests created by the Subordinated Debt;

             (3)  Liens for taxes or assessments not yet due or contested in
             good faith by appropriate proceedings;

             (4)  Security interest approved by the Bank in writing, at its sole
             discretion; and

             (5)  Other liens, charges and encumbrances incidental to the
             conduct of its business or the ownership of its property which were
             not incurred in connection with the borrowing of money or the
             purchase of property on credit and which do not in the aggregate
             materially detract from the value of its property or materially
             impair the use thereof in its business.

                                       9
<PAGE>

     (c)  Expend or contract to expend funds for the purchase or lease of any
     property, whether real, personal or mixed, except current assets purchased
     in the ordinary course of business.

     (d)  Sell, lease or otherwise dispose of all or any substantial part of its
     property.

     (e)  Consolidate or merge with, or acquire assets of, any other corporation
     or business.

     (f)  Substantially alter the nature of the business in which it is engaged,
     or enter into a new business.

     (g)  Declare or pay any dividends (except dividends payable solely in its
     capital stock, or dividends needed to pay current federal and state income
     tax liability as long as Debtor remains sub-S corporation), or purchase or
     redeem any of its capital stock, or otherwise distribute any property on
     account of its capital stock.

     (h)  Purchase stock or securities of, extend credit to or make investments
     in, become liable as surety for, or guarantee or endorse any obligation of,
     any person, firm or corporation, except direct obligations of the United
     States and commercial bank deposits.

     (i)  In any manner transfer any property without prior or present receipt
     of full and adequate consideration.

     (j)  Permit funds to be owing to the Debtor by the directors or
     shareholders of Debtor, or members of their families, on account of any
     loan, credit sale or other transaction or event.

     (k)  Pay excessive or unreasonable salaries, bonuses, fees, commissions or
     other compensation.

     (l)  Permit any default or event of default to occur under any note, loan
     agreement, lease, mortgage, contract for deed, security agreement or other
     contractual obligation binding upon Debtor.

                           VIII.  EVENTS OF DEFAULT

     8.1  Each of the following occurrences shall constitute an Event of
Default:

     (a)  The Debtor shall fail to pay any installment of interest due on the
     Revolving Note or any installment of interest and principal due on the Term
     Note, and such failure shall continue for five (5) calendar days.

     (b) The Debtor shall fail to perform or observe any of the covenants
     contained in Sections VI and VII of this Agreement, and such failure shall
     continue for a period often (10) calendar days.

                                      10
<PAGE>

     (c)  Any representation or warranty contained in Section V shall prove to
     have been materially false or misleading as of this date or (except to the
     extent of changes caused by transactions permitted under this Agreement) as
     of any date on which a loan is made to the Debtor under this Agreement; or
     any other representation or warranty made by or on behalf of the Debtor to
     the Bank (whether made in this Agreement, in any financial statement,
     report or certificate famished pursuant to this Agreement, or otherwise in
     any manner) shall prove to have been false or materially misleading as of
     the time as of which such representation or warranty was made.

     (d)  The Debtor shall fail to pay when due any substantial liability or
     liabilities other than the SNB Notes; or the maturity of any such liability
     or liabilities shall be accelerated; or any breach, default or event of
     default shall occur under any indenture, loan agreement, note or agreement
     pertaining to any such liability, entitling a creditor or representative of
     creditors of the Debtor, acting with or without the consent or concurrence
     of other creditors and with or without notice or a period of grace, to
     accelerate the maturity of or demand payment of any such liability, whether
     such breach, default or event of default is waived by the creditor so
     entitled. "Substantial" for these purposes, means in excess of Twenty Five
     Thousand and No/100 Dollars ($25,000).

     (e)  Any breach, default or event of default shall occur under the Security
     Agreement, or under any other agreement, conveyance or instrument now in
     effect or hereafter made for the benefit of the Bank in connection with or
     as security for indebtedness arising under this Agreement.

     (f)  The Debtor shall have procured, permitted or suffered, voluntarily or
     involuntarily, any creditor to obtain a lien not permitted herein upon all
     or any substantial part of its property by operation of law or the
     appointment by any court or public authority (other than a bankruptcy
     court) of any receiver or trustee to take charge of, or the sequestration
     of, all or any substantial part of its property; or shall commit an act of
     bankruptcy under the United States Bankruptcy Act (as now or hereafter
     amended); or shall file or have filed against it, voluntarily or
     involuntarily, a petition in bankruptcy or for reorganization or the
     adoption of an arrangement under the United States Bankruptcy Act (as now
     or hereafter amended); or shall initiate or have initiated against it,
     voluntarily or involuntarily, any act, process or proceeding for
     liquidation, dissolution, arrangement, composition or reorganization or
     under any insolvency law or other statute or law providing for a
     modification or adjustment of the rights of creditors.

     (g)  Any event or reportable event which the Bank in good faith determines
     to constitute potential grounds for the termination of any employee benefit
     plan or other plan maintained for employees of the Debtor, or for the
     appointment of a trustee to administer any such plan, shall have occurred
     and be continuing thirty (30) calendar days after written notice to such
     effect shall have been given by the Bank to the Debtor, or any such plan
     shall be terminated, or a trustee shall be appointed to administer any such
     plan; or the Pension Benefit Guaranty Corporation shall institute
     proceedings to terminate any such plan or to appoint a trustee to
     administer any such plan.

                                      11
<PAGE>

     8.2  Upon the occurrence of an Event of Default or at any time thereafter
until such Event of Default is waived in writing, if capable of being cured, is
cured to the written satisfaction of the Bank, the Bank at its option may
exercise one or more of all of the following rights and remedies:

     (a)  Terminate the obligations of the Bank under this Agreement; and

     (b)  Declare the indebtedness evidenced by the SNB Notes to be immediately
     due and payable, and the same shall thereupon be immediately due and
     payable, without notice or presentment or other demand, and the Bank
     thereupon may exercise and enforce all rights and remedies available to it
     to collect the indebtedness evidenced by the SNB Notes; and

     (c)  Exercise and enforce all rights and remedies accorded upon default to
     a secured party; and

     (d)  Without notice to or demand upon the Debtor or any other person, off
     set any indebtedness then owed to the Bank by the Debtor, whether or not
     such indebtedness is then due, against the indebtedness evidenced by the
     SNB Notes (including, without limitation, indebtedness transferred by the
     Bank to a third party by participation, negotiation, assignment, succession
     or otherwise) and any other indebtedness then owed by the Debtor to

     the Bank, whether or not then due, and exercise any and all other rights of
     set off, application or banker's lien available to the Bank by law or
     agreement.

     8.3  Any Event of Default may be waived in writing by the Bank, but not
otherwise; and the failure to exercise the rights and remedies referred to in
Paragraph 8.2 shall not operate as a waiver or otherwise preclude enforcement of
such rights and remedies. A waiver shall be effective only in the specific
instance and for the specific purpose given. The rights and remedies of the Bank
shall be cumulative and the exercise or enforcement of any one right or remedy
shall neither be a condition to nor bar the exercise and enforcement of any
other.

     8.4  The Debtor agrees to pay the Bank, on demand, the amount of all out-
of-pocket expenses, including the reasonable fees and disbursements of legal
counsel for the Bank, incurred or paid by the Bank in connection with or as a
result of the exercise or enforcement of any right or remedy referred to in
Section 5.2, except to the extent payment of the same by the Debtor may be
prohibited by law.

                              IV.  MISCELLANEOUS

     9.1  All notices to be given to the Debtor hereunder shall be sufficiently
given if sent in writing by certified or registered mail, addressed to the
Debtor at 5314 South Yale, Suite 1100 Tulsa, OK 74135, Attention: CFO, and to
the Bank at P.O. Box 521500, Tulsa, OK 74152, Attention: President, or addressed
to such other address or to the attention of such other person as any party may
from time to time designate in written notice to the other party.

                                      12
<PAGE>

     9.2  The Debtor shall pay to the Bank, upon the funding of the Term Note a
loan fee of 1/4 of 1% of the principal amount of the Revolving Note ($5,000.00)
and the amount of all reasonable out-of-pocket expenses, including the fees, and
disbursements of legal counsel for the Bank paid or incurred by the Bank in
connection with the preparation, execution, delivery and performance of this
Agreement, the Term Note, the Revolving Note, the Security Agreement, the
Guaranties and all documents deemed necessary by the Bank. The Debtor agrees to
indemnify and hold harmless the Bank from and against any and all taxes
(including documentary taxes), assessments and other charges (except net income
taxes) levied or based upon or payable in connection with the execution,
delivery and performance of this Agreement or the Note, the Security Agreement,
or levied or based upon payable in connection with, or measured by the
indebtedness evidenced by the Note.

     9.3  This Agreement shall inure to the benefit of, extend to and be binding
upon the respective successors and assigns of the Debtor and the Bank, including
any participant of the Bank. The term "Bank", as used herein, includes any
subsequent holder of the Term Note or the Revolving Note. This Agreement cannot
be modified, amended, waived, canceled, terminated or otherwise changed orally.
This Agreement is made and the Note will be issued under, and each shall be
governed and construed by the substantive laws of, the State of Oklahoma. If any
provision of this Agreement is held invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect other
provisions which can be given effect, and this Agreement shall be given effect,
and shall be construed as if such invalid or illegal or unenforceable provision
had never been contained herein. All representations and warranties contained in
this Agreement shall survive the execution and delivery of this Agreement and
the issuance of the Note.

     IN WITNESS WHEREOF, this Agreement is executed as of the day and year first
above written.

                                    "DEBTOR"
                                    Westwood Corporation,
                                    a Nevada corporation

                                    By: /s/ Ernest H. McKee
                                        -----------------------------
                                        Ernest H. McKee, President

                                    TANO Corp.,
                                    a Louisiana corporation

                                    By: /s/ Ernest H. McKee
                                        -----------------------------
                                        Ernest H. McKee, President

                                    NMP Corp.,
                                    an Oklahoma corporation,

                                    By: /s/ Ernest H. McKee
                                        -----------------------------
                                        Ernest H. McKee, President

                                      13
<PAGE>

                                    MC II Electric Company,
                                    a Texas corporation

                                    By: /s/ Ernest H. McKee
                                        -----------------------------
                                        Ernest H. McKee, President

                                    "Bank"
                                    Stillwater National Bank and Trust Company,
                                    Stillwater, Oklahoma,

                                    By: /s/ Joe E. Stairs
                                        -----------------------------
                                        Joe E. Staires, Senior Vice-President

                                      14
<PAGE>

                                   EXHIBIT A

                                     TERM
                                PROMISSORY NOTE
                                ---------------
$2,000,000.00                                                    August 13, 1999

     FOR VALUE RECEIVED, WESTWOOD CORPORATION, a Nevada corporation, TANO CORP.,
a Louisiana corporation, MC II ELECTRIC COMPANY, a Texas corporation, and NMP
CORP., an Oklahoma corporation, (hereinafter collectively called the "Maker"),
promises to pay to the order of STILLWATER NATIONAL BANK AND TRUST COMPANY,
STILLWATER, OKLAHOMA, (hereinafter called the "Holder") at P.O. Box 521500,
Tulsa, Oklahoma 74152, or such other place as Holder may from time to time
direct Maker in writing, on or before August ___, 2004, (hereinafter called the
"Maturity Date") the principal sum of TWO MILLION and NO/100 DOLLARS
($2,000,000.00), together with interest from the date hereof on unpaid principal
as more specifically set forth herein below.

     The interest rate on this Note is the Contract Rate as that term is defined
in that certain Loan Agreement of even date herewith by and between Maker and
Holder.

     This Note shall be paid in fifty-nine (59) monthly installments of
principal and interest beginning on September 13, 1999, and on the 13th day of
every month thereafter until the Maturity Date, at which time all accrued but
unpaid interest and the unpaid principal balance thereof shall be due and
payable in full.

     Any principal and/or interest not paid when due shall bear interest at a
rate six percent (6%) per annum greater than the per annum interest rate
prevailing on the Note at the time the unpaid amount became due, but in no event
at a rate less than fifteen percent (15%) per annum. In addition to, or in the
alternative to, the interest rate provided for in this paragraph, Lender may
assess a charge of ten dollars ($10) times the number of days late to cover cost
of past due notices and other expenses.

     Interest on this Note is calculated on the actual number of days elapsed on
a basis of a 360 day year. For purposes of computing interest and determining
the date principal and interest payments are received, all payments made will
not be deemed to have been made until such payments are received in collected
funds.

     This Note and all amounts due hereunder are secured by the collateral,
which is more particularly described in the Security Agreement and the Loan
Agreement of even date herewith, and the "Security Instruments" (as defined in
the Loan Agreement).

     This Note may be prepaid in part or in full at any time without penalty.

     Upon the occurrence of an Event of Default as defined in any Security
Instrument, or default in any obligation secured by or set forth in the Security
Instruments, the entire indebtedness secured

                                       1

<PAGE>

by said Security Instruments shall, at the option of the Holder hereof, after
any applicable notice or grace period as may be provided in the Security
Instruments, and without necessity of any other notice or demand of any kind, be
immediately due and payable. Except as specifically otherwise provided in this
Note, the Security Agreement, or any guaranty agreement, or any security
agreement, all makers, endorser, guarantors and sureties hereof jointly and
severally waive presentment, protest, notice of protest, notice of dishonor,
diligence in collection, and any and all other notices and matters of a like
nature. All makers, endorser, guarantors and sureties consent to: (i) any
renewal, extension or modification (whether one or more) of the terms of the
Security Instruments, including the terms or time of payment under this Note;
(ii) the release or surrender, exchange or substitution of all or any part of
the security, whether real or personal, direct or indirect, for the payment
hereof; (iii) the granting of any other indulgences to Maker, and (iv) the
taking or releasing of other or additional parties primarily or contingently
liable hereunder. Any such renewal, extension, modification, release, surrender,
exchange or substitution may be made without notice to Maker and any endorser,
guarantors and sureties hereof and without affecting the liability of said
parties hereunder. If an attorney be employed to collect or otherwise enforce
payment of this Note, or any judicial foreclosure proceeding or proceeding
pursuant to a power of sale be commenced, or action be taken under any of the
other instruments securing this Note, all costs of collection, including
reasonable attorney's fees, in addition to court fees and costs, shall be paid
by Maker.

     The Loan Agreement, this Note, the Guaranties, and the Security Instruments
described in the Loan Agreement are of even date herewith and constitute the
agreement between Maker and Holder with respect to the indebtedness evidenced by
this Note.

     This Note shall be governed by and construed in accordance with the laws of
the State of Oklahoma and is intended to be performed in accordance with, and
only to the extent permitted by, such laws. If any provision of this Note or the
application hereof to any person or circumstance shall, for any reason and to
any extent, be invalid or unenforceable, neither the remainder of this Note nor
the application of such provision to any other person or circumstance shall be
affected thereby, but rather same shall be enforced to the greatest extent
permitted by law.

     All amounts payable hereunder are payable by check or legal tender of the
United States of America.

     The Holder hereof shall not be liable for failure to collect or for lack of
diligence in bringing suit on this Note or on any renewal or extension hereof or
upon or with respect to any security or to foreclose the mortgage given to
secure the payment hereof or for failure to make demand or presentment for
payment or to protest or give notice of protest, dishonor or non-payment or any
other notice, or generally for any act of omission or commission. The failure of
the Holder hereof to exercise any of the remedies or options set forth in this
Note, the mortgage or any other security instrument, upon the occurrence of one
or more of the Events of Default, including, without limitation, the right to
exercise its option of acceleration, shall not constitute a waiver of the right
to exercise the same or any other remedy at any subsequent time in respect to
the same or any other Event of Default. The acceptance by Holder of payment
hereunder that is less than payment in full of all amounts due and payable at
the time of such payment shall not constitute a waiver of the right to

                                       2
<PAGE>

exercise any of the foregoing options at that time or at any subsequent time, or
nullify any prior exercise of any such option without the express written
consent of the Holder.

     All agreements between the Maker and the Holder are expressly limited so
that in no event whatsoever, whether by reason of disbursement of the proceeds
hereof or otherwise, shall the amount of interest or finance charge (as defined
by the laws of the State of Oklahoma) paid or agreed to be paid by the Maker to
the Holder hereof exceed the highest lawful contractual rate of interest or the
maximum finance charge permissible under the law which a court of competent
jurisdiction, by final non-appealable order, determines to be applicable hereto.
If fulfillment of any agreement between the Maker and the Holder hereof, at the
time the performance of such agreement becomes due, involves exceeding such
highest lawful contractual rate or such maximum permissible finance charge, then
the obligation to fulfill the same shall be reduced automatically so that such
obligation does not exceed such highest lawful contractual rate or such maximum
permissible finance charge. If by any circumstance the Holder shall ever receive
as interest or finance charge an amount which would exceed the amount allowed by
applicable law, the amount which may be deemed excessive shall be deemed applied
to the principal of the indebtedness evidenced hereby and not to interest. All
sums received or agreed to be paid to Holder hereunder for the use, forbearance
or detention of the indebtedness under this Note shall, to the extent permitted
by applicable law, be amortized, prorated, allocated and spread throughout the
full term of this Note. The terms and provisions of this paragraph shall control
all other terms and provisions contained herein and in any of the other
instruments executed in connection herewith.

     This Note is given for an actual lending transaction for business purposes
and not for personal, residential or agricultural purposes.

     IN WITNESS WHEREOF, this Note has been executed by Maker as of the date set
forth above.

                                    "Maker"
                                    Westwood Corporation

                                    By:________________________________
                                       Ernest McKee, President

                                    TANO Corp.

                                    By:________________________________
                                       Ernest H. McKee, President

                                    MC II Electric Company

                                    By:________________________________
                                       Ernest H. McKee, President

                                       3
<PAGE>

                                    NMP Corp.

                                    By:___________________________________
                                       Ernest H. McKee, President

                                       4
<PAGE>

                                   EXHIBIT B

                                   REVOLVING
                                   ---------
                                PROMISSORY NOTE
                                ---------------

$2,000,000.00                                                    Tulsa, Oklahoma
                                                                 August 13, 1999

KNOW ALL MEN BY THESE PRESENTS, THAT:

     FOR VALUE RECEIVED, the undersigned, WESTWOOD CORPORATION, a Nevada
corporation, TANO CORP., a Louisiana corporation, MC II ELECTRIC COMPANY, a
Texas corporation and NMP CORP., an Oklahoma corporation (hereinafter
collectively called the "Maker"), promises to pay to the order of STILLWATER
NATIONAL BANK AND TRUST COMPANY, STILLWATER, OKLAHOMA, a National Banking
Corporation ("SNB" or the "Holder"), on or before August 13, 2000, (hereinafter
called the "Maturity Date") the principal sum of Two Million and 00/100 Dollars
($2,000,000.00) (hereinafter called the "Face Amount"), or so much thereof which
is actually outstanding from time to time, in lawful money of the United States
of America, together with all costs herein provided and interest at the
"Contract Rate" (defined below) on the principal balance outstanding hereof and
thereon from the date hereof until said amounts shall have been paid in full as
more specifically provided below.

     1.  REVOLVING CREDIT. This Note will evidence a revolving line of credit to
         ----------------
Maker. Subject to the terms and conditions of the "Loan Agreement" pertaining to
the loan evidenced by this Note, which is of even date herewith between Maker
and Holder, Maker shall have the right from time to time during the term of this
Note to borrow and, upon repayment, re-borrow from the Holder amounts having the
aggregate principal balance at any one time not exceeding the lesser of (i) the
"Borrowing Base" (defined below) determined as of the date of any borrowing or
reborrowing, or (ii) the Face Amount. Advances under this Note shall be made in
accordance with Paragraphs 2.1,2.2 and 2.3 of the Loan Agreement. Maker agree to
be liable for all sums advanced in accordance with Paragraphs 2.1, 2.2 and 2.3
of the Loan Agreement. The unpaid principal balance owing on this Note at any
time may be evidenced by endorsements on this Note or by Holder's internal
records, including daily computer print-outs. Holder will have no obligation to
advance funds under this Note if (i) Maker or any guarantor is in default under
the terms of this Note, the Loan Agreement, the "Security Agreement" (defined
below) or any agreement that Maker or any guarantor has with Holder, including
any agreement made in connection with the signing of the Note; (ii) Maker or any
guarantor ceases doing business or is insolvent; (iii) and any guarantor seeks,
claims or otherwise attempts to limit, modify or revoke such guarantor's
guarantee of this Note or any other loan with Holder; (iv) Maker have applied
funds provided pursuant to this Note for purposes other than those authorized by
Holder; or (v) Holder in good faith deems itself insecure under this Note or any
other agreement between Holder and Maker. For these purposes Borrowing Base,
Trade Accounts Receivable and Eligible Trade Accounts Receivable will have the
meaning as defined in the Loan Agreement.

                                       1
<PAGE>

     2.  INTEREST ONLY. Maker shall pay the Holder monthly payments of interest
         -------------
only, to-wit: Beginning on September 13, 1999, and on the same day of each month
thereafter until the Maturity Date, monthly payments of interest only shall be
paid in arrears on the outstanding principal balance. At the Maturity Date all
accrued but unpaid interest and the unpaid principal balance shall be due and
payable. PROVIDED, HOWEVER, so often as the principal balance of this Note shall
ever exceed the Borrowing Base, Maker shall immediately notify Holder of such
event and Maker shall immediately, without the necessity of Holder making a
demand or giving notice to Maker or to any person obligated to pay the
indebtedness of this Note, pay Holder so much of the outstanding principal so
that the then remaining principal balance shall equal or be less than the
Borrowing Base.

     3.  VARIABLE INTEREST RATE. The interest rate on this Note is the Contract
         ----------------------
Rate, as defined in the Loan Agreement.

     4.  DAILY INTEREST. Interest shall be calculated on the daily principal
         --------------
balance based on the actual number of days elapsed in the interest payment
period over a year of three hundred sixty (360) days. All payments which are due
on a Saturday, Sunday or national bank holidays shall be deemed to be payable on
the next bank business day.

     5.   COLLATERAL. This Note and all amounts due hereunder are secured by the
          ----------
account receivables of and inventory of the Maker as described and set forth in
that certain SECURITY AGREEMENT of even date herewith (hereinafter called the
"Security Agreement"), given by Maker.

     6.   PREPAYMENT. Maker shall have the right to prepay this Note, in whole
          ----------
or in part, at any time without penalty or premium.

     7.   ACCELERATION UPON DEFAULT. It is agreed that time is of the essence in
          -------------------------
the performance of all obligations hereunder and under the Security Instruments.
Maker and each surety, endorser and guarantor hereof, jointly and severally,
covenant and agree that upon the occurrence of any Event of Default as defined
in the Security Agreement or any other Security Instrument, then and in any of
such events the Holder hereof may, at its option and without notice or demand,
declare this Note and all unpaid principal and accrued interest hereunder
immediately due and payable. The Holder hereof shall not be liable for failure
to collect or for lack of diligence in bringing suit on this Note or on any
renewal or extension hereof or upon or with respect to any security or to
foreclose the Mortgage given to secure the payment hereof or for failure to make
demand or presentment for payment or to protest or give notice of protest,
dishonor or non-payment or any other notice, or generally for any act of
omission or commission. The failure of the Holder hereof to exercise any of the
remedies or options set forth in this Note, the Security Agreement or any other
Security Instrument, upon the occurrence of one or more of the Events of
Default, including without limitation the right to exercise its option of
acceleration, shall not constitute a waiver of the right to exercise the same or
any other remedy at any subsequent time in respect to the same or any other
Event of Default.

                                       2
<PAGE>

     8.   DEFAULT INTEREST RATE. Upon the occurrence of any Event of Default
          ---------------------
hereunder, or upon maturity hereof (by acceleration or otherwise), the entire
unpaid principal sum and then accrued and unpaid interest, at the option of
Holder, shall bear interest at the rate of six percent (6%) in excess of the
Base Rate.

     9.   JOINT AND SEVERAL LIABILITY; ATTORNEY'S FEES. This Note shall be the
          --------------------------------------------
joint and several obligation of all makers, and it shall be the joint and
several obligation of all endorsers, guarantors and sureties, and shall be
binding on all parties hereto and their successors and assigns. All makers,
endorser, guarantors and sureties hereof agree jointly and severally that if,
and as often as, this Note is placed in the hands of any attorneys for
collection or to defend or enforce any of the Holder's rights hereunder, Maker
shall pay to the Holder on demand its reasonable attorney's fees, together with
all court costs and other expenses paid by such Holder.

     10.  WAIVERS. Except as specifically otherwise provided in this Note, the
          -------
Security Agreement, or any guaranty agreement, or any Security Agreement, all
makers, endorsers, guarantors and sureties hereof jointly and severally waive
presentment, protest, notice of protest, notice of dishonor, diligence in
collection, and any and all other notices and matters of alike nature. All
makers, endorsers, guarantors and sureties consent to: (i) any renewal,
extension or modification (whether one or more) of the terms of the Security
Instruments, including the terms or time of payment under this Note; (ii) the
release or surrender, exchange or substitution of all or any part of the
security, whether real or personal or direct or indirect, for the payment
hereof; (iii) the granting of any other indulgences to Maker, including, without
limitation, the advancement of additional principal and extension of additional
credit so that the principal balance remaining is above the Face Amount hereof,
and (iv) the taking or releasing of other or additional parties primarily or
contingently liable hereunder. Any such renewal, extension, modification,
release, surrender, exchange or substitution may be made without notice to Maker
and any endorsers, guarantors and sureties hereof and without affecting the
liability of said parties hereunder:

     11.  ONE INSTRUMENT: OKLAHOMA LAW. This Note and the Security Instruments
          ----------------------------
are to be construed as one contract and each hereby referred to and made a part
of the other. This Note is being executed and delivered and is intended to be
performed in the State of Oklahoma and shall be construed and enforced in
accordance with and governed by the laws of the State of Oklahoma.

     12.  MODIFICATIONS, FORBEARANCE. This Note may not be modified or
          --------------------------
terminated orally but only by agreement or discharge in writing and signed by
Holder. Any forbearance of Holder in exercising any right or remedy hereunder or
under the Security Instruments, or otherwise afforded by applicable law, shall
not be a waiver of or preclude the exercise of any right or remedy. The
acceptance by Holder of payment of any sum payable hereunder after the due date
of such payment shall not be a waiver of Holder's right to require prompt
payment when due of all other sums payable hereunder and shall not constitute an
implied or tacit approval for the late or delinquent payment of any other
installment due hereunder.

     13.  SUCCESSORS OF HOLDER. Whenever the term "Holder" is referred to in
          --------------------
this Note, such reference shall be deemed to include the successors and assigns
of Holder, including,

                                       3
<PAGE>

without limitation, any subsequent assignee or holder of this Note, and all
covenants, provisions and agreements by or on behalf of Maker and any endorsers,
guarantors and sureties hereof which are contained herein shall inure to the
benefit of the successors and assigns of Holder.

     14.   CURATIVE INTEREST RATE. All agreements between the Maker and the
           ----------------------
Holder are expressly limited so that in no event whatsoever, whether by reason
of disbursement of the proceeds hereof or otherwise, shall the amount of
interest or finance charge (as defined by the laws of the State of Oklahoma)
paid or agreed to be paid by the Maker to the Holder hereof exceed the highest
lawful contractual rate of interest or the maximum finance charge permissible
under the law which a court of competent jurisdiction, by final non-appealable
order, determines to be applicable hereto. If fulfillment of any agreement
between the Maker and the Holder hereof, at the time the performance of such
agreement becomes due, involves exceeding such highest lawful contractual rate
or such maximum permissible finance charge, then the obligation to fulfill the
same shall be reduced automatically so that such obligation does not exceed such
highest lawful contractual rate or such maximum permissible finance charge. If
by any circumstance the Holder shall ever receive as interest or finance charge
an amount which would exceed the amount allowed by applicable law, the amount
which may be deemed excessive shall be deemed applied to the principal of the
indebtedness evidenced hereby and not to interest. All interest and finance
charges paid or agreed to be paid to the Holder hereof shall be prorated,
allocated and spread throughout the full period of this Note. The terms and
provisions of this paragraph shall control all other terms and provisions
contained-herein and in any of the other Security Instruments executed in
connection herewith.

     15.   NOTICES. Any notice, report, demand or other instrument authorized or
           -------
required to be given or furnished under this Note to the Maker or the Holder
shall be deemed given, received and furnished: (i) when personally delivered; or
(ii) three (3) days after the same is deposited in the United States mail as
first class certified mail, return receipt requested, postage prepaid; or (iii)
the day after such notice is deposited with an overnight delivery service, such
as Federal Express, Airborne, etc.; or (iv) via confirmed telecopy or facsimile,
to the address as follows:

     Addresses for such Notices are as follows:

     IF TO HOLDER:
     ------------

     STILLWATER NATIONAL BANK
     Attn: President
     P.O. Box 521500
     Tulsa, Oklahoma 74152
     Phone: (918) 523-3600
     Fax: (918) 523-3894
<PAGE>

     IF TO Maker:
     -----------

     Westwood Corporation, et al.
     Attn: CFO
     5314 South Yale, Suite 1100
     Tulsa, Oklahoma 74135
     Phone: (918) 524-0002
     Fax: (918) 524-0006

     Either party may change the address to which any such notice, report,
demand or other instrument is to be delivered or mailed by furnishing written
notice of such change to the other party, but no such notice of change shall be
effective unless and until received by such other party. Copies of notices given
to the specified persons are for information only and notice shall not be
effected by giving notice solely to said persons. The above addresses shall also
constitute the addresses of the parties for the purposes of (S) 9-402 of the
Oklahoma Uniform Commercial Code and any similar provision of the Uniform
Commercial Code of any other state where the Mortgaged Property is located, and
for such purposes the Maker shall be the debtor and the Holder shall be the
secured party.

     16.   UNENFORCEABLE TERMS. If any provision of this Note or the application
           -------------------
thereof to any party or encumbrance is held invalid or unenforceable, the
remainder of this Note and the application of such provision to other parties or
circumstances shall not be affected thereby, the provisions of this Note being
severable in any such instance.

     17.   BUSINESS PURPOSES. This Note is given for an actual loan of money for
           -----------------
business purposes and not for personal, residential or agricultural purposes.

     18.  EVIDENCE OF DEBT. The records of the Holder of this Note shall be
          ----------------
prima facie evidence of the amount owing on this Note.

     IN WITNESS WHEREOF, the undersigned has executed this Note this day of
August, 1999.

                                    "Maker"
                                    Westwood Corporation

                                    By:_______________________________
                                       Ernest H. McKee, President

                                       5
<PAGE>

                                    TANO Corp.

                                    By:_______________________________
                                       Ernest H. McKee, President

                                    MC II Electric Company

                                    By:_______________________________
                                       Ernest H. McKee, President

                                    NMP Corp.

                                    By:_______________________________
                                         Ernest H. McKee, President

                                       6
<PAGE>

                                  "EXHIBIT C"
              BORROWING BASE CERTIFICATE AND COMPLIANCE STATEMENT

     This Borrowing Base Certificate is delivered under the terms and compliance
with a LOAN AGREEMENT by and between the STILLWATER NATIONAL BANK AND TRUST
COMPANY OF STILLWATER, OKLAHOMA, and BORROWER therein named for is Note No.
41554.

TO:  STILLWATER NATIONAL BANK AND TRUST COMPANY OF STILLWATER, OKLAHOMA

     The undersigned is ________________ of BORROWER as defined in the LOAN
AGREEMENT referred to above.  The undersigned reaffirms all representations and
warrants made by BORROWER in the LOAN AGREEMENT referred to above and certifies
and warrants that it holds, subject to the security interest of LENDER, the
collateral described in the Borrowing Base calculation below:

<TABLE>
<S>                                                                      <C>
Total Accounts as shown in the attached Accounts Receivable
Aging Report as of the end of_________________________, _______          $________________  (a)
(Includes TANO, NMP and MC II)

     Less:
     Accounts of Subsidiaries and Affiliates                             $________________  (b)

     Accounts outstanding more than ninety (90) days
          from the date of the invoice                                   $________________  (c)

     Account debtors not located in the United States
          of America or Canada                                           $________________  (d)

     Accounts of Account debtor previously disapproved by BANK           $________________  (e)

     Amount of Accounts representing retainage                           $________________  (f)

     Total Accounts of account debtor when more than ninety (90) days
     have expired from the date of the invoice of more than ten
     percent (10%) (in dollars) of the debtor's Accounts Receivable      $________________  (g)

     Total Accounts of account debtors to whom Borrower is indebted      $________________  (h)

     Total Ineligible Account [Total of (b) through (h)]                 $________________  (i)

     Potential Total Eligible Trade Accounts Receivable (a) less (i)     $________________  (j)

     Less Concentration - the amount of Account debtors' accounts in
     excess of 15% and total Eligible Accounts Receivable calculated
     without this Deduction                                              $________________  (k)

     Less Government Progress Payments in excess of $300,000             $________________  (l)

     Total Eligible Trade Accounts Receivable (j) less (k and l)         $________________  (m)

Receivable Portion of BORROWING BASE (80% of) (m)                        $________________  (n)
</TABLE>

                                       1
<PAGE>

<TABLE>
<S>                                                                             <C>
Eligible Inventory $________ (the lesser of 50% of the cost of raw materials
and finished products and 50% of the fair market value of raw material and
furnished products) as of the end of _______________,
(Includes TANO, NMP and MC II)                                                  $_____________  (o)

BORROWING BASE (n) plus (o)                                                     $_____________  (p)

     Total Loan Amount                                                          $_____________  (q)

     Less: Principal Balance of Loan as of _________________, _____
          (Same date as Accounts Receivable Aging Report)                       $_____________  (r)

     Principal balance of Loan not advanced [(q) - (r)]                         $_____________  (s)

     Principal Amount of Loan subject to being advanced (the
     lesser of (p) or (q) minus (r)                                             $_____________  (t)
</TABLE>

If (p) minus (r) is a negative number, attached you will find a check payable to
LENDER in the amount of $ _______________the amount (p) exceeds (r) to reduce
the principal of the loan.

Unless and until a new subsequent Borrowing Base Certificate and Compliance
Statement is received by LENDER, the maximum principal balance outstanding shall
not exceed the lesser of (p) and (r).

--------------------------------------------------------------------------------
                                 ADVANCE REQUEST

     AMOUNT OF ADVANCE REQUEST:    $__________________

     DEPOSIT TO ACCOUNT            $__________________

________________________________________________________________________________

                                    BORROWER

     Date:__________________        By:____________________________________

                                       2
<PAGE>

                                  "EXHIBIT 1"

                         TO LOAN AGREEMENT BETWEEN THE
            STILLWATER NATIONAL BANK AND TRUST COMPANY, AS LENDER,
                     AND WESTWOOD CORPORATION, AS BORROWER

                             DATED AUGUST 13, 1999

     Subject to the terms and conditions of the LOAN AGREEMENT, BORROWER shall
have the right, from time to time, prior to the maturity of the loan, to
borrower and, upon repayment, reborrow from the LENDER an amount not at any time
exceeding the lesser of (i) $2,000,000.00 or (ii) the Borrowing Base determined
as of the date of borrowings following the procedures attached hereto as
"EXHIBITS A and B" to this "EXHIBIT 1".

     If, at any time, the outstanding principal balance of the loan exceeds the
Borrowing Base, BORROWER shall immediately reduce the principal balance of the
loan to an amount not to exceed the Borrowing Base.

     Pursuant to the LOAN AGREEMENT, LENDER is granted a security interest in
and BORROWER shall sign a Security Agreement granting LENDER a security interest
in all BORROWER'S Accounts, including Eligible Accounts Receivable, as
hereinafter defined, inventory and general intangibles. Notwithstanding any
apportionment or segregation of the collateral made by LENDER for the purpose of
determining the Borrowing Base, all collateral granted to LENDER pursuant to
this LOAN AGREEMENT and all other collateral rights, interest in properties now
or at anytime hereafter available to LENDER, shall secure and may be applied to
pay any or all indebtedness of BORROWER in any manner or order of application
and without regard to any such apportionment or segregation. LENDER shall have
the right to audit or to have a third party, as agent for the LENDER, audit the
books and records of BORROWER, including, but not limited to the Accounts
Receivable of BORROWER, at any reasonable time and from time to time. Included
in the right to audit is the right to confirm with customers of BORROWER the
accuracy of the Accounts, so long as such confirmation is done in a businesslike
manner. The cost of one such audit per year shall be paid by BORROWER.

     Prior to the 15/th/ day of each month and as a condition precedent to any
borrowing or advances under the Loan, BORROWER will provide LENDER a complete
Account Receivable aging report in a form satisfactory to LENDER and a completed
Borrowing Base Certificate. The Account Receivable aging report shall be as of
the close of business for the previous month-end and certified to by BORROWER or
an appropriate officer of BORROWER. The Borrowing Base Certificate (attached
hereto as "EXHIBIT B to EXHIBIT 1") will be singed by BORROWER or an appropriate
officer of BORROWER. The Borrowing Base Certificate will be provided to the
LENDER monthly, at the same time the Accounts Receivable aging report is
furnished. BORROWER will furnish LENDER a list of persons authorized to certify
the Account Receivable aging report and a list of persons authorized to request
advances or borrowings. "EXHIBIT 3" is a list with the title and specimen
signature of the persons currently authorized to request advances or

                                       1
<PAGE>

borrowings. The persons on the list may be changed, from time to time, by
written notice to LENDER and after BORROWER provides a new list.

     As a condition precedent to any borrowing or advances under this Loan,
BORROWER will provide LENDER, from time to time as requested by LENDER and in
any event by the 15/th/ day of every month, a complete listing of its inventory
as of the previous month end.

                                       2
<PAGE>

                            "EXHIBIT A to EXHIBIT 1"

                    PROCEDURE FOR REVOLVING LINES OF CREDIT

     This "EXHIBIT A" sets forth the procedures for a revolving line of credit
using a Borrowing Base Certificate.

     For the purpose of this "EXHIBIT A" and this Loan, the terms hereinafter
set forth have the following definitions:

     (a) "Borrowing Base" means, as of any given date, 80% percent of Eligible
Accounts Receivable plus 50% of the value of raw materials and finished goods,
valued at the lesser of cost and fair market value. Work in progress is not
eligible to be a part of the Borrowing Base calculation.

     (b) "Accounts Receivable" and "Accounts" means, as of any given date: (a)
all accounts of BORROWER for goods sold and delivered; (b) all accounts of
BORROWER for, services rendered; and (c) the value of construction completed
under contracts which have invoiced by BORROWER to the owner of property and, if
necessary, approved for payment by an architect, engineer or any other required
third party. All Accounts must be generated in the ordinary course of the
business of BORROWER as presently conducted by it and represent accounts then
invoiced and due and owing as an Account Receivable.

     (c) "Eligible Account Receivable" means an Account Receivable of BORROWER
which meets each of the following requirements:

     (1) it is a valid, genuine and legally enforceable obligation, subject to
no defense, set-off or counterclaim, of [lie account debtor or other obligor
named therein or in BORROWER'S records pertaining thereto, and BORROWER has not
received from the account debtor or other obligor any notification repudiating
such obligation or asserting that such obligation is subject to any defense,
set-off or counterclaim, or in whole or in part;

     (2) it is owned by BORROWER free and clear of all interest, liens,
attachments, encumbrances and security interests, except the security interest
grunted to the LENDER pursuant to this LOAN AGREEMENT;

     (3) no more than ninety (90) days have expired since the date of the
invoice or invoices of not less than ninety percent (90%) in amount of all
Accounts Receivable of the same Account Receivable debtor. If more than ninety
(90) days have expired since the date of the invoices of ten percent (10%) or
more in amount of all Accounts Receivable of the Account debtor, none of the
Accounts Receivable of that debtor shall be an Eligible Account Receivable and
all of the Accounts Receivable of the same account debtor shall be treated as a
tainted Account Receivable;

                                       1
<PAGE>

     (4)  BORROWER has not received notice from the LENDER that the credit of
the account debtor is not satisfactory to the bank for any reason;

     (5)  the account debtor is not a subsidiary or affiliate of company;

     (6)  the account debtor is located in the United States of America;

     (7)  Eligible Account Receivables shall not include any Account Receivable
of the same account debtor to BORROWER in excess of fifteen percent (15%) of the
then total Eligible Accounts Receivable of BORROWER determined after excluding
the Account Receivable of the account debtor;

     (8)  any and all retainage held by an account debtor of BORROWER shall not
be included as a part of the balance of an Account Receivable in calculating the
Borrowing Base and will be excluded from the Borrowing Base;

     (9)  no Account Receivable of the account debtor is subject to any set off
or off set by the account debtor for monies owed by BORROWER to the third party
account debtor; and

     (10) not more than 90 days has elapsed since the date of the original
invoice.

     In addition to the eligibility requirements set forth herein, LENDER shall
have the right (in its sole discretion) with or without the consent of BORROWER
(from time to time by written notice to BORROWER), to establish additional or
further eligibility requirements and to change in any manner the eligibility
requirements set forth herein or otherwise established. If at any time any
Eligible Account Receivable ceases to meet all of the eligibility requirements
set forth herein or otherwise established or changed from time to time by the
LENDER, such Account Receivable shall be immediately excluded from Eligible
Accounts Receivable and the Borrowing Base will be re-determined any payment
required of BORROWER to reduce the unpaid principal balance below the Borrowing
Base will be immediately made.

     If at any time the Borrowing Base is less than the outstanding principal
balance of the Loan, BORROWER shall immediately pay to BANK for credit on the
principal balance, the amount the then unpaid principal balance of the Loan
exceeds the Borrowing Base.

                                       2
<PAGE>

                                  "EXHIBIT 2"

                      LIST OF AFFILIATES AND SUBSIDIARIES

[_]  No Subsidiaries or Affiliate.

[_]  The following Subsidiaries (S) and/or Affiliates (A)

1.

2.

3.

4.

                                       1
<PAGE>

                                  "EXHIBIT 3"

                    PERSONS AUTHORIZED TO REQUEST ADVANCES

NAME                TITLE                    SPECIMEN SIGNATURE

1.                                               _______________________________

2.                                               _______________________________

3.                                               _______________________________

                                       1
<PAGE>

                                  "EXHIBIT 1"

                         TO LOAN AGREEMENT BETWEEN THE
                STILLWATER NATIONAL BANK AND TRUST COMPANY, AS LENDER,
                     AND WESTWOOD CORPORATION, AS BORROWER

                             DATED AUGUST 13, 1999

     Subject to the terms and conditions of the LOAN AGREEMENT, BORROWER shall
have the right, from time to time, prior to the maturity of the loan, to
borrower and, upon repayment, reborrow from the LENDER an amount not at any time
exceeding the lesser of (i) $2,000,000.00 or (ii) the Borrowing Base determined
as of the date of borrowings following the procedures attached hereto as
"EXHIBITS A and B" to this "EXHIBIT 1".

     If, at any time, the outstanding principal balance of the loan exceeds the
Borrowing Base, BORROWER shall immediately reduce the principal balance of the
loan to an amount not to exceed the Borrowing Base.

     Pursuant to the LOAN AGREEMENT, LENDER is granted a security interest in
and BORROWER shall sign a Security Agreement granting LENDER a security interest
in all BORROWER'S Accounts, including Eligible Accounts Receivable, as
hereinafter defined, inventory and general intangibles. Notwithstanding any
apportionment or segregation of the collateral made by LENDER for the purpose of
determining the Borrowing Base, all collateral granted to LENDER pursuant to
this LOAN AGREEMENT and all other collateral rights, interest in properties now
or at anytime hereafter available to LENDER, shall secure and may be applied to
pay any or all indebtedness of BORROWER in any manner or order of application
and without regard to any such apportionment or segregation. LENDER shall have
the right to audit or to have a third party, as agent for the LENDER, audit the
books and records of BORROWER, including, but not limited to the Accounts
Receivable of BORROWER, at any reasonable time and from time to time. Included
in the right to audit is the right to confirm with customers of BORROWER the
accuracy of the Accounts, so long as such confirmation is done in a businesslike
manner. The cost of one such audit per year shall be paid by BORROWER.

     Prior to the 15/th/ day of each month and as a condition precedent to any
borrowing or advances under the Loan, BORROWER will provide LENDER a complete
Account Receivable aging report in a form satisfactory to LENDER and a completed
Borrowing Base Certificate. The Account Receivable aging report shall be as of
the close of business for the previous month-end and certified to by BORROWER or
an appropriate officer of BORROWER. The Borrowing Base Certificate (attached
hereto as "EXHIBIT B to EXHIBIT 1") will be singed by BORROWER or an appropriate
officer of BORROWER. The Borrowing Base Certificate will be provided to the
LENDER monthly, at the same time the Accounts Receivable aging report is
furnished. BORROWER will furnish LENDER a list of persons authorized to certify
the Account Receivable aging report and a list of persons authorized to request
advances or borrowings. "EXHIBIT 3" is a list with the title and specimen
signature of the persons currently authorized to request advances or

                                       1
<PAGE>

borrowings. The persons on the list may be changed, from time to time, by
written notice to LENDER and after BORROWER provides a new list.

     As a condition precedent to any borrowing or advances under this Loan,
BORROWER will provide LENDER, from time to time as requested by LENDER and in
any event by the 15/th/ day of every month, a complete listing of its inventory
as of the previous month end.

                                       2
<PAGE>

                           "EXHIBIT A to EXHIBIT 1"

                    PROCEDURE FOR REVOLVING LINES OF CREDIT

     This "EXHIBIT A" sets forth the procedures for a revolving line of credit
using a Borrowing Base Certificate.

     For the purpose of this "EXHIBIT A" and this Loan, the terms hereinafter
set forth have the following definitions:

     (a)  "Borrowing Base" means, as of any given date, 80% percent of Eligible
Accounts Receivable plus 50% of the value of raw materials and finished goods,
valued at the lesser of cost and fair market value. Work in progress is not
eligible to be a part of the Borrowing Base calculation.

     (b)  "Accounts Receivable" and "Accounts" means, as of any given date: (a)
all accounts of BORROWER for goods sold and delivered; (b) all accounts of
BORROWER for, services rendered; and (c) the value of construction completed
under contracts which have invoiced by BORROWER to the owner of property and, if
necessary, approved for payment by an architect, engineer or any other required
third party. All Accounts must be generated in the ordinary course of the
business of BORROWER as presently conducted by it and represent accounts then
invoiced and due and owing as an Account Receivable.

     (c)  "Eligible Account Receivable" means an Account Receivable of BORROWER
which meets each of the following requirements:

     (1)  it is a valid, genuine and legally enforceable obligation, subject to
no defense, set-off or counterclaim, of [lie account debtor or other obligor
named therein or in BORROWER'S records pertaining thereto, and BORROWER has not
received from the account debtor or other obligor any notification repudiating
such obligation or asserting that such obligation is subject to any defense,
set-off or counterclaim, or in whole or in part;

     (2)  it is owned by BORROWER free and clear of all interest, liens,
attachments, encumbrances and security interests, except the security interest
grunted to the LENDER pursuant to this LOAN AGREEMENT;

     (3)  no more than ninety (90) days have expired since the date of the
invoice or invoices of not less than ninety percent (90%) in amount of all
Accounts Receivable of the same Account Receivable debtor. If more than ninety
(90) days have expired since the date of the invoices of ten percent (10%) or
more in amount of all Accounts Receivable of the Account debtor, none of the
Accounts Receivable of that debtor shall be an Eligible Account Receivable and
all of the Accounts Receivable of the same account debtor shall be treated as a
tainted Account Receivable;

                                       1
<PAGE>

     (4)  BORROWER has not received notice from the LENDER that the credit of
the account debtor is not satisfactory to the bank for any reason;

     (5)  the account debtor is not a subsidiary or affiliate of company;

     (6)  the account debtor is located in the United States of America;

     (7)  Eligible Account Receivables shall not include any Account Receivable
of the same account debtor to BORROWER in excess of fifteen percent (15%) of the
then total Eligible Accounts Receivable of BORROWER determined after excluding
the Account Receivable of the account debtor;

     (8)  any and all retainage held by an account debtor of BORROWER shall not
be included as a part of the balance of an Account Receivable in calculating the
Borrowing Base and will be excluded from the Borrowing Base;

     (9)  no Account Receivable of the account debtor is subject to any set off
or off set by the account debtor for monies owed by BORROWER to the third party
account debtor; and

     (10) not more than 90 days has elapsed since the date of the original
invoice.

     In addition to the eligibility requirements set forth herein, LENDER shall
have the right (in its sole discretion) with or without the consent of BORROWER
(from time to time by written notice to BORROWER), to establish additional or
further eligibility requirements and to change in any manner the eligibility
requirements set forth herein or otherwise established. If at any time any
Eligible Account Receivable ceases to meet all of the eligibility requirements
set forth herein or otherwise established or changed from time to time by the
LENDER, such Account Receivable shall be immediately excluded from Eligible
Accounts Receivable and the Borrowing Base will be re-determined any payment
required of BORROWER to reduce the unpaid principal balance below the Borrowing
Base will be immediately made.

     If at any time the Borrowing Base is less than the outstanding principal
balance of the Loan, BORROWER shall immediately pay to BANK for credit on the
principal balance, the amount the then unpaid principal balance of the Loan
exceeds the Borrowing Base.

                                       2
<PAGE>

                                  "EXHIBIT 2"

                      LIST OF AFFILIATES AND SUBSIDIARIES

[_]  No Subsidiaries or Affiliate.

[_]  The following Subsidiaries (S) and/or Affiliates (A)

1.

2.

3.

4.

                                       1
<PAGE>

                                  "EXHIBIT 3"

                    PERSONS AUTHORIZED TO REQUEST ADVANCES

NAME                TITLE                    SPECIMEN SIGNATURE

1.                                               _______________________________

2.                                               _______________________________

3.                                               _______________________________

                                       1

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