Document:

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                                CONTROL AGREEMENT

         This Control Agreement (this "Agreement") is made this 22nd day of
August, 2001, by and among FIRST UNION NATIONAL BANK, a national banking
association, in its capacity as the issuer of two standby letters of credit (the
"Letters of Credit") under the Letter of Credit Agreements, as defined below,
and not in its capacity as Custodian, as defined below (the "Bank"), UDC, INC.,
a New Jersey corporation (the "Debtor"), and FIRST UNION NATIONAL BANK, a
national banking association, in its capacity as a custodian, and not in its
capacity as Bank ("Custodian").

                                   BACKGROUND

         A. Debtor has opened Account No. [XXXX] with Custodian with an initial
deposit of cash, instruments, financial assets, investment property and
securities with an initial value of no less than Fifteen Million Dollars
($15,000,000) (the "Account") pursuant to the terms of an agreement, a copy of
which is attached hereto as Exhibit A (the "Account Agreement"). To the extent
that there is a conflict between this Agreement and the Account Agreement, this
Agreement shall control.

         B. Debtor has executed and delivered Bank two completed copies of the
Bank's Application and Agreement for Irrevocable Standby Letter of Credit,
copies of which are attached hereto as Exhibit B (the "Letter of Credit
Agreements"), pursuant to which Bank will, upon the satisfaction of certain
conditions, issue the Letters of Credit for the account of Debtor. Debtor's
obligations under the Letter of Credit Agreements are to be secured by a pledge
of Debtor's interest and grant of a security interest in all assets in the
Account pursuant to the terms of a Pledge Agreement by and between Bank and
Debtor dated of even date herewith (the "Pledge Agreement").

         C. The parties hereto are entering into this Agreement to perfect the
security interest of the Bank in the Collateral (as defined below), and to
provide for the control of the Account, as required pursuant to the Letter of
Credit Agreements.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound
hereby, the parties hereto agree as follows:

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                                    AGREEMENT

Section 1.        Priority of Lien.

                    (1) Custodian (i) acknowledges that it has received a copy
of the Letter of Credit Agreements, (ii) acknowledges and recognizes the
security interest in the Account and the assets contained therein (including
without limitation any credit balance, cash and/or cash equivalent instruments,
investment property and financial assets) or credited thereto from time to time
together with all proceeds (including cash and non-cash proceeds, investment
property, all rights of Debtor thereto, any rollovers, substitutions or
instruments issued in exchange therefor and all documents relative thereto
(together with the Account, collectively, the "Collateral") granted thereby by
the Debtor to the Bank, and (iii) has marked its records to reflect the security
interest of the Bank in the Account.

                    (2) Custodian represents and confirms that it has not
previously taken, or granted, a security interest in the Account or any of the
Collateral, and Custodian has not been notified of any other security interest
in or encumbrance on the Account or any of the Collateral.

                    (3) Custodian hereby waives and releases all liens, claims,
encumbrances and rights of setoff it may have against the Account or any of the
Collateral and agrees that, except for the payment of its normal and customary
fees and commissions pursuant to the Account Agreement, it will not assert any
such lien, claim, encumbrance or right of setoff against the Account or any of
the Collateral.

         Section 2. Control. Custodian hereby agrees that it will comply with
entitlement orders or any other instructions respecting the Account originated
by the Bank, without requiring further consent by the Debtor. Custodian will not
disburse any principal amount from the Account other than in accordance with the
Bank's written direction. Until the Bank notifies the Custodian that the Bank is
exercising exclusive control over the Account (a "Notice of Exclusive
Control"), and except as otherwise provided herein, Custodian shall comply with
investment instructions and entitlement orders with respect to interest and
earnings on the Account originated by the Debtor with respect to the Collateral
and shall make trades of financial assets or other Collateral held in the
Account pursuant to such instructions, so long as the Collateral consists solely
of Permitted Investments (as defined below). Upon Custodian's receipt of a
Notice of Exclusive Control, Custodian will immediately cease complying with
orders or instructions originated by the Debtor concerning the Account.

         Section 3. Investments; Interest and Dividends. Pursuant to the terms
of Section 2, Debtor shall, upon the effectiveness of this Agreement, instruct
the Custodian to purchase Permitted Investments (and only Permitted
Investments), to be allocated among various Permitted Investments at the
discretion of the Debtor, for deposit in the Account. Prior to the occurrence of
an Event of Default (as defined in the Pledge Agreement), Custodian shall comply
with Debtor's instructions regarding the distribution of interest payments and
cash dividends earned on the securities in the Account. Upon the occurrence and
during the continuance of an Event of Default, Custodian shall retain all
interest payments and cash dividends earned on the securities in the Account as
Collateral. "Permitted Investments" means (i) investments in certificates of
deposit issued by the Bank maturing within one (1) year from the date of
acquisition thereof, but no later than the expiration date of the Letters of
Credit; and (ii) money market funds sponsored by the Bank or an affiliate of
the Bank.

                                       -2-
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         Section 4. Additional Undertakings of Custodian. Custodian hereby
agrees with the Bank and the Debtor that until otherwise notified by the Bank in
writing, Custodian: (a) will send Account statements or other statements
regarding the Collateral, no less frequently than on a monthly basis, to the
Bank, at the address for the Bank provided beneath the signature of Bank at the
end of this Agreement or as otherwise provided by Bank in writing, (b) will act
as agent and bailee for the Bank, under Bank's sole direction, for the purposes
stated herein and in the Pledge Agreement, (c) will not take any action which
would adversely affect Bank's interest in the Collateral, including without
limitation making loans to the Debtor, taking, or granting, a security interest
in the Account or any of the foregoing Collateral or (except as set forth in
Section 5 below) setting off against any of it, without prior written consent
from the Bank, and (d) will not acknowledge or otherwise accept instructions to
exert any control over or to identify, by book entry or other means, any
assignment or grant of a security interest in the Account or any of the
Collateral to any person or entity other than the Bank, and shall promptly
notify Bank if any person or entity asserts a lien, encumbrance or adverse claim
against the Account or any of the Collateral.

         Section 5. Custodian's Expenses. All expenses incurred by Custodian, in
the ordinary course of its administration of the Account, will be Debtor's sole
responsibility but may be repaid from the Account until such time as the Bank
provides a Notice of Exclusive Control to the Custodian, and after delivery of
such Notice of Exclusive Control, Custodian's expenses will not be repaid from
the Account until all of the Debtor's obligations to the Bank have been
indefeasibly repaid in full.

         Section 6. Responsibility of Custodian. Custodian shall have no
responsibility or liability to Bank for making investments or trades of
financial assets or any other Collateral in the Account at the instruction of
Debtor, or its authorized representatives, or complying with entitlement orders
concerning the Account or any Collateral from Debtor, which are received by
Custodian before Custodian receives a Notice of Exclusive Control, so long as
all such investments, trades and entitlement orders concern only Permitted
Investments. Custodian shall have no responsibility or liability to Debtor for
complying with a Notice of Exclusive Control or complying with entitlement
orders concerning the Account originated by the Bank after the Custodian's
receipt of a Notice of Exclusive Control. Custodian shall have no duty to
investigate or make any determination as to the validity of or reasons for its
receipt of a Notice of Exclusive Control. Neither this Agreement nor either of
the Letter of Credit Agreements creates any obligation or duty of Custodian
other than those expressly set forth herein.

         Section 7. Tax Reporting. All items of income, gain, expense and loss
recognized in the Account shall be reported to the Internal Revenue Service and
all state and local taxing authorities under the name and taxpayer
identification number of Debtor as required under foreign, federal, state and
local law.

                                       -3-
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         Section 8. Termination. The rights and powers granted herein to Bank
have been granted in order to perfect its security interest in the Account and
any other Collateral, are powers coupled with an interest and will neither be
affected by the bankruptcy of Debtor nor by the lapse of time. The obligations
of Custodian under Sections 2, 3 and 4 above shall continue in effect until the
security interest of the Bank in the Account and any other Collateral has been
terminated pursuant to the terms of the Letter of Credit Agreements and Pledge
Agreement, and Bank has notified Custodian of such termination in writing. Upon
receipt of such notice, the obligations of Custodian under Sections 2, 3 and 4
above with respect to the operation and maintenance of the Account and any other
Collateral shall terminate, Bank shall have no further right to originate
entitlement orders concerning the Account or any other Collateral, and Custodian
shall take such steps as Debtor may request to vest full ownership and control
of the Account and any other Collateral in Debtor, including, but not limited
to, removing the name of Bank from the Account or transferring all of the
financial assets and credit balances, or any other Collateral in the Account, to
another securities account in the name of Debtor or its designee. Bank shall
promptly notify Debtor and Custodian of Bank's termination of its security
interest in the Account and any other Collateral.

         Section 9. Integration. This Agreement, the schedules and exhibits
hereto and the agreements and instruments required to be executed and delivered
hereunder set forth the entire agreement of the parties with respect to the
subject matter hereof and supersede and discharge all prior agreements (written
or oral) and negotiations and all contemporaneous oral agreements concerning
such subject matter and negotiations. There are no oral conditions precedent to
the effectiveness of this Agreement.

         Section 10. Amendments. No amendment, modification or termination of
this Agreement or waiver of any right hereunder shall be binding on any party
hereto unless it is in writing and is signed by the party to be affected
thereby.

         Section 11. Severability. If any term or provision set forth in this
Agreement shall be invalid or unenforceable, the remainder of this Agreement, or
the application of such terms or provisions to persons or circumstances, other
than those to which it is held invalid or unenforceable, shall be construed in
all respects as if such invalid or unenforceable term or provision were omitted.

         Section 12. Successors. The terms of this Agreement shall be binding
upon, and shall inure to the benefit of, the parties hereto and their respective
successors and assigns.

         Section 13. Rules of Construction. In this Agreement, words in the
singular number include the plural, and in the plural include the singular,
words of the masculine gender include the feminine and the neuter, and when the
sense so indicates words of the neuter gender may refer to any gender and the
word "or" is disjunctive but not exclusive. The captions and section numbers
appearing in this Agreement are inserted only as a matter of convenience. They
do not define, limit or describe the scope or intent of the provisions of this
Agreement.

                                       -4-
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         Section 14. Notices. Any notice, request or other communication
required or permitted to be given under this Agreement shall be in writing and
deemed to have been properly given: (a) when delivered in person; or (b) when
sent by telecopy or other electronic means and electronic confirmation of
receipt is received during normal business hours or, if after business hours, on
the next business day; or (c) if sent by recognized overnight courier, on the
next business day; or (d) if sent by certified or registered United States mail,
return receipt requested, postage prepaid, addressed to the party at the address
set forth below such party's signature at the end of this Agreement, on the
third day after being sent. Any party may change its address for notices in the
manner set forth above.

         Section 15. Counterparts. This Agreement may be executed in any number
of counterparts, all of which shall constitute one and the same instrument, and
any party hereto may execute this Agreement by signing and delivering one or
more counterparts.

         Section 16. Choice of Law. The parties hereto agree that certain
material events, occurrences and transactions relating to this Agreement bear a
reasonable relationship to the Commonwealth of Pennsylvania. The validity,
terms, performance and enforcement of this Agreement, including for purposes of
the perfection and priority of the security interest in the Collateral, shall be
governed by those laws of the Commonwealth of Pennsylvania, without reference to
conflicts of law or choice of law provisions.

         Section 17. Jury Trial. THE BANK, THE DEBTOR AND THE CUSTODIAN EACH
HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO
ANY ACTION, CLAIM OR OTHER PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION
WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE PERFORMANCE OF
SUCH RIGHTS AND OBLIGATIONS.

                                       -5-
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                  IN WITNESS WHEREOF, the parties hereto have entered into this
Agreement on the date first set forth above.

                                    Custodian:

                                    FIRST UNION NATIONAL BANK, in its capacity
                                    as Custodian and not in its capacity as Bank

                                    By: /s/ Blake Payne
                                        ---------------
                                        Name: Blake Payne
                                        Title: Vice President

                                    123 South Broad Street
                                    Philadelphia, PA 19109
                                    Attn: Blake Payne, Vice President
                                    Telephone No.: (215) 786-7611
                                    Facsimile No.: (267) 321-7854

                                       -6-
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                             [EXECUTIONS CONTINUED]

                                    Debtor:

                                    UDC, INC.

                                    By: /s/ Sidney Rosenblatt
                                        -----------------------
                                        Name: Sidney Rosenblatt
                                        Title: CFO

                                    375 Phillips Boulevard
                                    Ewing, New Jersey 08618
                                    Attn: Sidney Rosenblatt, CFO
                                    Telephone No.: (609) 671-9280
                                    Facsimile No.: (609) 671-0995

                                    Bank:

                                    FIRST UNION NATIONAL BANK, in its capacity
                                    as Bank and not in its capacity as Custodian

                                    By: /s/ Robert J. Fries
                                        ---------------------
                                        Name: Robert J. Fries
                                        Title: Vice President

                                    123 South Broad Street
                                    Philadelphia, PA 19109
                                    Attn: Robert J. Fries, Vice President
                                    Telephone No.: (215) 985-7383
                                    Facsimile No.: (215) 985-7405

                                       -7-<PAGE>

                        GUARANTY AND SURETYSHIP AGREEMENT

         THIS GUARANTY AND SURETYSHIP AGREEMENT (this "Guaranty"), dated August
22, 2001, is made by UNIVERSAL DISPLAY CORPORATION, a Pennsylvania corporation
with an address at 375 Phillips Boulevard, Ewing, New Jersey 08618 (the
"Guarantor"), in favor of FIRST UNION NATIONAL BANK, a national banking
association with offices at One South Penn Square, Philadelphia, Pennsylvania
19107 (the "Bank").

                              W I T N E S S E T H :

         WHEREAS, UDC, Inc., a New Jersey corporation (the "Applicant"), has
delivered two Applications and Agreements For Irrevocable Standby Letter of
Credit (the "Letter of Credit Agreements") to Bank, requesting the Bank to issue
two standby letters of credit (the "Letters of Credit") for the account of
Applicant and for the benefit of Pine Ridge Financial Inc. and Strong River
Investments Inc. in order to secure payment of certain notes payable by
Guarantor to such beneficiaries;

         WHEREAS, the Guarantor has caused the proceeds of the notes to be
contributed to Applicant and Applicant has pledged such proceeds to Bank as
collateral for it obligations to Bank under the Letter of Credit Agreements; and

         WHEREAS, Bank is willing issue the Letters of Credit under the Letter
of Credit Agreements subject to the condition, among others, that Guarantor,
being the owner of one hundred percent (100%) of the outstanding shares of
capital stock of Applicant, shall have executed and delivered to the Bank this
Guaranty;

         NOW, THEREFORE, in order to induce the Bank to issue the Letters of
Credit under the Letter of Credit Agreements, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
intending to be legally bound, Guarantor does hereby covenant and agree with
Bank as follows:

         1.       Definitions and Construction. Reference is hereby made to the
Letter of Credit Agreements for a statement of the terms thereof. All terms used
in this Guaranty which are defined in the Letter of Credit Agreements and not
defined herein shall have the respective meanings ascribed to such terms in the
Letter of Credit Agreements.

         2.       Guaranty. Guarantor absolutely and unconditionally guarantees
and becomes surety for the full, prompt and punctual payment to Bank, as and
when due, whether at maturity, by acceleration or otherwise, of any and all
indebtedness, and performance of any and all liabilities and obligations of
Applicant to Bank created at any time under, or pursuant to the terms of the
Letter of Credit Agreements, whether for reimbursement obligations, principal,
interest, premiums, fees, expenses or otherwise (all such indebtedness,
liabilities and obligations being herein called collectively the "Obligations"),
together with any and all reasonable expenses, including without limitation
attorneys' fees and disbursements, which may be incurred by Bank in collecting
any or all of the Obligations or enforcing any and all rights against Guarantor
under this Guaranty (the "Expenses"). Without limiting Guarantor's obligations
hereunder and notwithstanding any purported termination of this Guaranty, if any

<PAGE>

bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation, dissolution, assignment for the benefit of creditors, or similar
event with respect to Applicant or any co-guarantor or endorser of all or any of
the Obligations shall occur, and such occurrence shall result in the return of
(or in such event Bank shall be requested to return) of any payment or
performance of any of the Obligations or Expenses, then (a) without further
notice, demand or other action, the obligations of Guarantor hereunder shall be
reinstated with respect to (i) such payment or performance returned (or
requested to be returned) and (ii) with respect to all further obligations
arising as a result of such return or request, and (b) Guarantor shall thereupon
be liable therefor, without any obligation on the part of Bank to contest or
resist any such return.

         3.       Nature and Term of Guaranty.

                  (a) The obligations and liability of Guarantor under this
Guaranty shall be independent, absolute, primary and direct, irrevocable and
unconditional, regardless of any non-perfection of any collateral security for
the Obligations; any lack of validity or enforceability of the Letter of Credit
Agreements or any of the Obligations or Expenses; the voluntary or involuntary
liquidation, dissolution, sale or other disposition of all, or substantially all
of the assets, marshalling of assets and liabilities, receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition with creditors or readjustment of, or other similar
proceedings affecting Applicant or Guarantor or any co-guarantor or endorser of,
any or all of the Obligations and Expenses or any of the assets of any of them,
or any contest of the validity of this Guaranty in any such proceeding; or any
law, regulation or decree now or hereafter in effect in any jurisdiction which
might in any manner affect any of such terms or provisions or any of the rights
of Bank with respect thereto or which might cause or permit Applicant or any
co-guarantor or endorser of the Obligations and Expenses to invoke any defense
to, or any alteration in the time, amount or manner of payment of any or all of
the Obligations and Expenses or performance of this Guaranty.

                  (b) This Guaranty is a continuing guaranty and shall remain in
full force and effect until the Obligations, the Expenses and any and all other
amounts payable hereunder shall have been paid in full and no further letters of
credit are available under the Letter of Credit Agreements and the period during
which any payment by Applicant or Guarantor is or may be subject to rescission,
avoidance or refund under the United States Bankruptcy Code (or any similar
state statute) shall have expired.

         4.       Payment in Accordance with Letter of Credit Agreements.

                  (a) Guarantor hereby guaranties that the Obligations and
Expenses shall be paid and performed strictly in accordance with the terms of
the Letter of Credit Agreements.

                  (b) If any Obligation or Expense is not paid or performed by
the Applicant punctually, subject to any applicable grace period, including
without limitation any Obligation due by acceleration of the maturity thereof,
Guarantor will, upon the Bank's demand, immediately pay or perform such
Obligation or Expense or cause the same to be paid or performed. Guarantor will
pay to Bank, upon demand, all costs and expenses, including the Expenses, which
may be incurred by the Bank in the collection or enforcement of Guarantor's
obligations under this Guaranty.

                                        2
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         5.       Rights and Remedies of Bank.  Bank, in its sole discretion,
may proceed to exercise any right or remedy which it may have under this
Guaranty against Guarantor without first pursuing or exhausting any rights or
remedies which it may have against Applicant or against any other person or
entity or any collateral security, and may proceed to exercise any right or
remedy which it may have under this Guaranty without regard to any actions or
omissions of any other person or entity, in any manner or order, without any
obligation to marshal in favor of Guarantor or other persons or entities and
without releasing any of Guarantor's obligations hereunder with respect to any
unpaid Obligations and Expenses. No remedy herein conferred upon or reserved to
Bank is intended to be exclusive of any other available remedy or remedies, but
each and every such remedy shall be cumulative and shall be in addition to every
other remedy given under this Guaranty or now or hereafter existing at law or in
equity.

         6.       Actions by Bank Not Affecting Guaranty. Bank may, at any time
or from time to time, in such manner and upon such terms as it may deem proper,
extend or change the time of payment or the manner or place of payment of, or
otherwise modify or waive any of the terms of, or release, exchange, settle or
compromise any or all of the Obligations and Expenses or any collateral security
therefor, or subordinate payment of the same, or any part thereof, to the
payment of any other indebtedness, liabilities or obligations of Applicant which
may at any time be due or owing to Bank or anyone, or elect not to enforce any
of Bank's rights with respect to any or all of the Obligations and Expenses or
any collateral security therefor, all without notice to, or further assent of
Guarantor and without releasing or affecting Guarantor's obligations hereunder.

         7.       Payments Under Guaranty. All payments by Guarantor hereunder
shall be made in immediately available funds and in lawful money of the United
States of America to the Bank at such location as Bank shall specify by notice
to Guarantor. All payments by Guarantor under this Guaranty shall be made by
Guarantor solely from Guarantor's own funds and not from any funds of Applicant.

         8.       Modifications and Waivers. No failure or delay on the part of
Bank in exercising any power or right under this Guaranty shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or
power preclude any other or further exercise thereof or the exercise of any
other right or power under this Guaranty. No modification or waiver of any
provision of this Guaranty nor consent to any departure therefrom shall, in any
event, be effective unless the same is in writing signed by Bank and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given. No notice to, or demand on Guarantor, in any case,
shall entitle Guarantor to any other or further notice or demand in similar or
other circumstances.

         9.       Guarantor's Waiver. Guarantor hereby waives promptness,
diligence, presentment, demand, notice of acceptance and any other notice with
respect to any of the Obligations, the Expenses and this Guaranty.

         10.      Waiver of Subrogation. Guarantor hereby waives (a) any right
which Guarantor may now have or hereafter acquire by way of subrogation under
this Guaranty, by law or otherwise or by way of reimbursement, indemnity,
exoneration, or contribution; or (b) any right to assert defenses as the primary

                                        3
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obligor of the Obligations; or (c) any other claim which it now has or may
hereafter acquire against Applicant or any other person or against or with
respect to Applicant's property (including, without limitation, any property
which has been pledged to secure the Obligations); or (d) any right to enforce
any remedy which Bank may now have or hereafter acquire against Applicant or any
other guarantor, maker or endorser; in any case, whether any of the foregoing
claims, remedies and rights may arise in equity, under contract, by payment,
statute, common law or otherwise. If in violation of the foregoing any amount
shall be paid to Guarantor on account of any such rights at any time, such
amount shall be held in trust for the benefit of Bank and shall forthwith be
paid to Bank to be credited and applied against the Obligations and Expenses,
whether matured or unmatured, in accordance with the terms of the Letter of
Credit Agreements.

         11.      No Setoff by Guarantor. No setoff, counterclaim, deduction,
reduction, or diminution of any obligation, or any defense of any kind or nature
which Guarantor has or may have against Applicant or Bank shall be available
hereunder to Guarantor.

         12.      Representations and Warranties. Guarantor hereby represents
and warrants as follows:

                  (a) Guarantor is a corporation duly organized, validly
existing and in good standing under the laws of Pennsylvania, and has full
right, power and authority to enter into, and perform this Guaranty.

                  (b) The execution, delivery and performance by Guarantor of
this Guaranty has been duly authorized by all necessary actions, and do not and
will not contravene any law or any contract binding on, or affecting Guarantor.

                  (c) No authorization or approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body is
required for the due execution, delivery and performance by Guarantor of this
Guaranty.

                  (d) This Guaranty is a legal, valid and binding obligation of
Guarantor enforceable against the Guarantor in accordance with its terms.

         13.      Appointment of Agent for Service of Process.  If for any
reason Guarantor shall not be subject to service of process in the Commonwealth
of Pennsylvania during the term of this Guaranty, Guarantor hereby appoints,
without power of revocation, each officer of Guarantor as the agent of Guarantor
upon whom may be served all process, pleadings, notices or other documents which
may be served upon Guarantor under this Guaranty.

         14.      Addresses for Notices. All requests, consents, notices and
other communications required or permitted hereunder or in connection herewith
shall be deemed satisfactorily given if in writing and delivered personally or
by registered or certified mail, postage pre-paid, by reliable overnight
courier, or by telecopier to the parties at their respective addresses set forth
below or at such other address as may be given by any party to the other in
writing in accordance with this Section 14:

                                        4
<PAGE>

                  If to Guarantor:
                           Universal Display Corporation
                           375 Phillips Boulevard
                           Ewing, New Jersey 08618
                           Attention: Sidney Rosenblatt, CFO
                           Telephone No.: (609) 671-9280
                           Facsimile No.: (609) 671-0995
                  If to Applicant:
                           UDC, Inc.
                           375 Phillips Boulevard
                           Ewing, New Jersey 08618
                           Attention: Sidney Rosenblatt, CFO
                           Telephone No.: (609) 671-9280
                           Facsimile No.: (609) 671-0995
                  If to Bank:
                           First Union National Bank
                           123 South Broad Street
                           Philadelphia, Pennsylvania 19109
                           Attention: Robert J.  Fries, Vice President
                           Telephone No.: (215) 985-7383
                           Facsimile No.: (215) 985-7405

         15.      Continuing Guaranty. This Guaranty is a continuing guaranty
and shall (i) remain in full force and effect until the Obligations, the
Expenses and all other amounts payable under this Guaranty shall have been paid
in full and the period during which any payment by Applicant or Guarantor is or
may be subject to avoidance or refund under the United States Bankruptcy Code
(or any similar statute) shall have expired, (ii) be binding upon Guarantor and
the personal representatives, heirs, successors and assigns of Guarantor, and
(iii) inure to the benefit of, and be enforceable by Bank and its successors,
transferees and assigns. Without limiting the generality of the foregoing clause
(iii), Bank may endorse, assign or otherwise transfer its rights under the
Letter of Credit Agreements to any other person or entity, and such other person
or entity shall thereupon become vested with all the rights in respect thereof
granted to Bank herein or otherwise.

         16.      Entire Agreement. This Guaranty constitutes the entire
agreement, and supersedes all prior agreements and understandings, both written
and oral, between the parties with respect to the subject matter hereof.

         17.      Severability. The invalidity or unenforceability of any one or
more portions of this Guaranty shall not affect the validity or enforceability
of the remaining portions of this Guaranty.

                                        5
<PAGE>

         18.      Counterparts. This Guaranty may be executed in several
separate counterparts, each of which shall be an original and all of which taken
together shall constitute one and the same instrument.

         19.      Governing Law. This Guaranty shall be deemed to be a contract
under the laws of the Commonwealth of Pennsylvania, without regard to
conflicts-of-law principles, and for all purposes shall be governed by and
construed in accordance with such laws.

         20.      Jurisdiction, Venue, Trial By Jury. Guarantor hereby (a)
agrees that any litigation, action or proceeding arising out of or relating to
this Guaranty shall be instituted in the courts of the Commonwealth of
Pennsylvania or the United States District Courts for the Districts of
Pennsylvania; (b) waives any objection which Guarantor might have now or
hereafter to the venue in such courts of any such litigation, action or
proceeding; (c) irrevocably submits to the venue and exclusive jurisdiction of
such courts in any such litigation, action or proceeding; (d) irrevocably
consents to personal jurisdiction in such courts and further agrees that service
of process upon Guarantor may be effected by certified mail to the address
provided in Section 15 of this Guaranty or by any other means permitted by law;
(e) waives any claim or defense of inconvenient forum; and (f) waives any right
to trial by jury. The foregoing shall not preclude Bank from seeking to enforce
this Guaranty in any other court of competent jurisdiction.

         IN WITNESS WHEREOF, for good and valuable consideration and intending
to be legally bound hereby, this Guaranty has been executed by Guarantor as of
the date hereof.

                                                   UNIVERSAL DISPLAY CORPORATION

                                                   By:  /s/ Sidney Rosenblatt
                                                        ------------------------
                                                        Name:  Sidney Rosenblatt
                                                        Title: CFO

                                        6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]