Document:

<PAGE>

                                                                   EXHIBIT 10.36

                                PROMISSORY NOTE

<TABLE>
------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>             <C>            <C>            <C>      <C>            <C>         <C>        <C>
       Principal         Loan Date       Maturity      Loan No.       Call     Collateral     Account     Officer    Initials
     $1,250,000.00      04-24-2000      04-24-2001       9001         500         6073        3105442       952
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
         References in the shaded area are for Lender's use only and do not
limit the applicability of this document to any particular loan or item.
--------------------------------------------------------------------------------

<TABLE>
<S>                                                         <C>
Borrower:  INDUSTRIAL DATA SYSTEMS CORPORATION (TIN:        Lender:  THE FROST NATIONAL BANK
           88-0322261); ET. AL.                                      P.O. BOX 1600
           600 CENTURY PLAZA DRIVE, BUILDING 140                     SAN ANTONIO, TX 78296
           HOUSTON, TX 77073
</TABLE>

<TABLE>
===============================================================================================
  <S>                                 <C>                      <C>
  Principal Amount: $1,250,000.00     Initial Rate: 9.500%     Date of Note: April 24, 2000
</TABLE>

  PROMISE TO PAY. INDUSTRIAL DATA SYSTEMS CORPORATION, INDUSTRIAL DATA
  SYSTEMS, INC., THERMAIRE, INC. dba THERMAL CORPORATION. CONSTANT POWER
  MANUFACTURING, INC. and IDS ENGINEERING, INC. (referred to in this Note
  individually and collectively as "Borrower") jointly and severally promise to
  pay to THE FROST NATIONAL BANK ("Lender"), or order, in lawful money of the
  United States of America, the principal amount of One Million Two Hundred
  Fifty Thousand & 00/100 Dollars ($1,250,000.00) or so much as may be
  outstanding, together with interest on the unpaid outstanding principal
  balance of each advance. Interest shall be calculated from the date of each
  advance until repayment of each advance or maturity, whichever occurs first.

  CHOICE OF USURY CEILING AND INTEREST RATE. The interest rate on this Note has
  been implemented under the "Weekly Ceiling" as referred to in Sections 303.002
  and 303.003 of the Texas Finance Code. The terms, including the rate, or
  index, formula, or provision of law used to compute the rate on the Note, will
  be subject to revision as to current and future balances, from time to time by
  notice from Lender in compliance with Section 303.103 of the Texas Finance
  Code.

  PAYMENT. Borrower will pay this loan in one payment of all outstanding
  principal plus all accrued unpaid interest on April 24, 2001. In addition,
  Borrower will pay regular monthly payments of accrued unpaid interest
  beginning May 24, 2000, and all subsequent interest payments are due on the
  same day of each month after that. The annual interest rate for this Note is
  computed on a 365/360 basis; that is, by applying the ratio of the annual
  interest rate over a year of 360 days, multiplied by the outstanding principal
  balance, multiplied by the actual number of days the principal balance is
  outstanding, unless such calculation would result in a usurious rate, in which
  case interest shall be calculated on a per diem basis of a year of 365 or 366
  days, as the case may be. Borrower will pay Lender at Lender's address shown
  above or at such other place as Lender may designate in writing. Unless
  otherwise agreed or required by applicable law, payments will be applied first
  to any unpaid collection costs and any late charges, then to any accrued
  unpaid interest, and any remaining amount to principal. Notwithstanding any
  other provision of this Note, Lender will not charge interest on any
  undisbursed loan proceeds. No scheduled payment, whether of principal or
  interest or both, will be due unless sufficient loan funds have been disbursed
  by the scheduled payment date to justify the payment.

  VARIABLE INTEREST RATE. The interest rate on this Note is subject to change
  from time to time based on changes in an index which is Lender's Prime Rate
  (the "Index"). This is the rate Lender charges, or would charge, on 90-day
  unsecured loans to the most creditworthy corporate customers. This rate may or
  may not be the lowest rate available from Lender at any given time. Lender
  will tell Borrower the current Index rate upon Borrower's request. Borrower
  understands that Lender may make loans based on other rates as well. The
  interest rate change will not occur more often than each day. The Index
  currently is 9.000% per annum. The interest rate to be applied prior to
  maturity to the unpaid principal balance of this Note will be at a rate of
  0.500 percentage points over the Index, resulting in an initial rate of 9.500%
  per annum. NOTICE: Under no circumstances will the interest rate on this Note
  be more than the maximum rate allowed by applicable law. For purposes of this
  Note, the "maximum rate allowed by applicable law" means the greater of (a)
  the maximum rate of interest permitted under federal or other law applicable
  to the indebtedness evidenced by this Note, or (b) the "Weekly Ceiling" as
  referred to in Section 303.002 and 303.003 of the Texas Finance Code.

  PREPAYMENT. Borrower may pay without penalty all or a portion of the
  amount owed earlier than it is due. Early payments will not, unless agreed
  to by Lender in writing, relieve Borrower of Borrower's obligation to
  continue to make payments of accrued unpaid interest. Rather, they will
  reduce the principal balance due.

  POST MATURITY RATE. The Post Maturity Rate on this Note is the maximum rate
  allowed by applicable law. Borrower will pay interest on all sums due after
  final maturity, whether by acceleration or otherwise, at that rate, with the
  exception of any amounts added to the principal balance of this Note based on
  Lender's payment of insurance premiums, which will continue to accrue interest
  at the pre-maturity rate.

  DEFAULT. Borrower will be in default if any of the following happens: (a)
  Borrower fails to make any payment when due. (b) Borrower breaks any promise
  Borrower has made to Lender, or Borrower fails to comply with or to perform
  when due any other term, obligation, covenant, or condition contained in this
  Note or any agreement related to this Note, or in any other agreement or loan
  Borrower has with Lender. (c) Borrower defaults under any loan, extension of
  credit, security agreement, purchase or sales agreement, or any other
  agreement, in favor of any creditor or person that may materially affect any
  of Borrower's property or Borrower's ability to repay this Note or perform
  Borrower's obligations under this Note or any of the Related Documents. (d)
  Any representation or statement made or furnished to Lender by Borrower or on
  Borrower's behalf is false or misleading in any material respect either now or
  at the time made or furnished. (e) Borrower becomes insolvent, a receiver is
  appointed for any part of Borrwer's property, Borrower makes an assignment for
  the benefit of creditors, or any proceeding is commenced either by Borrower or
  against Borrower under any bankruptcy or insolvency laws. (f) Any creditor
  tries to take any of Borrower's property on or in which Lender has a lien or
  security interest. This includes a garnishment of any of Borrower's accounts
  with Lender. (g) Any guarantor dies or any of the other events described in
  this default section occurs with respect to any guarantor of this Note. (h) A
  material adverse change occurs in Borrower's financial condition, or Lender
  believes the prospect of payment or performance of the Indebtedness is
  impaired. (i) Lender in good faith deems itself insecure.

  LENDER'S RIGHTS. Upon default, Lender may declare the entire indebtedness,
  including the unpaid principal balance on this Note, all accrued unpaid
  interest, and all other amounts, costs and expenses for which Borrower is
  responsible under this Note or any other agreement with Lender pertaining to
  this loan, immediately due, without notice, and then Borrower will pay that
  amount. Lender may hire an attorney to help collect this Note if Borrower does
  not pay, and Borrower will pay Lender's reasonable attorneys' fees. Borrower
  also will pay Lender all other amounts actually incurred by Lender as court
  costs, lawful fees for filing, recording, or releasing to any public office
  any instrument securing this loan; the reasonable cost actually expended for
  repossessing, storing, preparing for sale, and selling any security; and
  fees for noting a lien on or transferring a certificate of title to any
  motor vehicle offered as security for this loan, or premiums or
  identifiable charges received in connection with the sale of authorized
  insurance. This Note has been delivered to Lender and accepted by Lender in
  the State of Texas. If there is a lawsuit, and if the transaction evidenced
  by this Note occurred in Bexar County, Borrower agrees upon Lender's request
  to submit to the jurisdiction of the courts of Bexar County, the State of
  Texas. This Note shall be governed by and construed in accordance with the
  laws of the State of Texas and applicable Federal laws.

  RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest
  in, and hereby assigns, conveys delivers, pledges, and transfers to Lender
  all Borrower's right, title and interest in and to, Borrower's account with
  Lender (whether checking, savings, or some other account), including
<PAGE>

04-24-2000                     PROMISSORY NOTE
Loan No 9001                     (Continued)                            Page 2
============                   ===============                          ======

without limitation all accounts held jointly with someone else and all accounts
Borrower may open in the future, excluding however all IRA and Keogh accounts,
and all trust accounts for which the grant of a security interest would be
prohibited by law. Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on this Note against any and
all such accounts.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under
this Note may be requested orally by Borrower or by an authorized person. Lender
may, but need not, require that all oral requests be confirmed in writing. All
communications, instructions, or directions by telephone or otherwise to Lender
are to be directed to Lender's office shown above. Borrower agrees to be liable
for all sums either: (a) advanced in accordance with the instructions of an
authorized person or (b) credited to any of Borrower's accounts with Lender. The
unpaid principal balance owing on this Note at any time may be evidenced by
endorsements on this Note or by Lender's internal records, including daily
computer print-outs. Lender will have no obligation to advance funds under this
Note if: (a) Borrower or any guarantor is in default under the terms of this
Note or any agreement that Borrower or any guarantor has with Lender, including
any agreement made in connection with the signing of this Note; (b) Borrower or
any guarantor ceases doing business or is insolvent; (c) any guarantor seeks,
claims or otherwise attempts to limit, modify or revoke such guarantor's
guarantee of this Note or any other loan with Lender; (d) Borrower has applied
funds provided pursuant to this Note for purposes other than those authorized by
Lender; or (e) Lender in good faith deems itself insecure under this Note or any
other agreement between Lender and Borrower. This revolving line of credit shall
not be subject to Chapter 346 of the Texas Finance Code.

DISHONORED CHECK CHARGE. In the event a check offered in full or partial payment
on this loan is returned unpaid, Lender may charge a fee for the purpose of
defraying the expense incident to handling such returned check, and Borrower
agrees to pay such fee. The fee shall not exceed the maximum amount permitted
under applicable law.

OTHER CREDITS AFFECTING AVAILABILITY. Any other credits made available to
Borrower by Lender, such as other loans or letters or credit, may be advanced to
Borrower and/or issued under this line of credit commitment, and any such
advances or issuances shall, in addition to the outstanding advances on this
Note, reduce the outstanding availability on the line of credit.

FACSIMILE DOCUMENTS AND SIGNATURES. For purposes of negotiating and finalizing
this document, if this document is transmitted by facsimile machine ("fax"), it
shall be treated for all purposes as an original document. Additionally, the
signature of any party on this document transmitted by way of a fax machine
shall be considered for all purposes as an original signature. Any such faxed
document shall be considered to have the same binding legal effect as an
original document. At the request of any party, any faxed document shall be re-
executed by each signatory party in an original form.

WAIVER OF RIGHT TO TRIAL BY JURY. THE PARTIES TO THIS AGREEMENT HEREBY WAIVE
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE
PARTIES HERETO AGAINST THE OTHER TO ENFORCE THIS AGREEMENT, TO COLLECT DAMAGES
FOR THE BREACH OF THIS AGREEMENT, OR WHICH IN ANY OTHER WAY ARISE OUT OF, ARE
CONNECTED TO OR ARE RELATED TO THIS AGREEMENT OR THE SUBJECT MATTER OF THIS
AGREEMENT. ANY SUCH ACTION SHALL BE TRIED BY THE JUDGE WITHOUT A JURY.

LATE CHARGE. If a payment is made 10 days or more late, Borrower will be
charged, in addition to interest, a delinquency charge of (i) 5% of the unpaid
portion of the regularly scheduled payment, or (ii) $250.00, whichever is less.
Additionally, upon maturity of this Note, if the outstanding principal balance
(plus all accrued but unpaid interest) is not paid within 10 days of the
maturity date, Borrower will be charged a delinquency charge of (i) 5% of the
sum of the outstanding principal balance (plus all accrued but unpaid interest),
or (ii) $250.00, whichever is less. Borrower agrees with Lender that the charges
set forth herein are reasonable compensation to Lender for the handling of such
late payments.

FINANCIAL INFORMATION. Borrower agrees to promptly furnish such financial
information and statements, including financial statements in a format
acceptable to Lender, lists of assets and liabilities, agings of receivables and
payables, inventory schedules, budgets, forecasts, tax returns, and other
reports with respect to Borrower's financial condition and business operations
as Lender may request from time to time. This provision shall not alter the
obligation of Borrower to deliver to Lender any other financial statements or
reports pursuant to the terms of any other loan documents executed in connection
with this Note.

ARBITRATION. The parties to this agreement agree that all disputes, claims and
controversies between them, whether individual, joint, or class in nature,
arising from the Note or otherwise, including without limitation contract and
tort disputes, shall be arbitrated pursuant to the Commercial Arbitration Rules
of the American Arbitration Association, upon written request of either party.
The party that requests arbitration has the burden to initiate the arbitration
proceedings pursuant to and by complying with the Commercial Arbitration Rules
of the American Arbitration Association and shall pay all associated
administrative and filing fees. The arbitration shall be conducted in the City
of San Antonio, Bexar County, Texas, and administered by the American
Arbitration Association. All arbitration hearings will be commenced within sixty
(60) days of the written request for arbitration, and if the arbitration hearing
is not commenced within the sixty (60) days, the party that requested
arbitration shall have waived its election to arbitrate. No act to take or
dispose of any collateral securing the Note shall constitute a waiver of this
arbitration agreement or be prohibited by this arbitration agreement. This
includes, without limitation, obtaining injunctive relief or a temporary
restraining order; invoking a power of sale under any deed of trust or mortgage;
obtaining a writ of attachment or imposition of a receiver; or exercising any
rights relating to personal property, including taking or disposing of such
property with or without judicial process pursuant to Article 9 of the Uniform
Commercial Code. Any disputes, claims, or controversies concerning the
lawfulness or reasonableness of any act, or exercise of any right, concerning
any collateral securing the Note, including any claim to rescind, reform, or
otherwise modify any agreement relating to the collateral securing the Note,
shall also be arbitrated, provided however that no arbitrator shall have the
right or the power to enjoin or restrain any act of any party. Judgment upon any
award rendered by any arbitrator may be entered in any court having
jurisdiction. Nothing in the Note shall preclude any party from seeking
equitable relief from a court of competent jurisdiction. The statute of
limitations, estoppel, waiver, laches, and similar doctrines which would
otherwise be applicable in an action brought by a party shall be applicable in
any arbitration proceeding, and the commencement of an arbitration proceeding
shall be deemed the commencement of an action for these purposes. The Federal
Arbitration Act shall apply to the construction interpretation, and enforcement
of this arbitration provision.

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will
not affect the rest of the Note. In particular, this section means (among other
things) that Borrower does not agree or intend to pay, and Lender does not agree
or intend to contract for, charge, collect, take, reserve or receive
(collectively referred to herein as "charge or collect"), any amount in the
nature of interest or in the nature of a fee for this loan, which would in any
way or event (including demand, prepayment, or acceleration) cause Lender to
charge or collect more for this loan than the maximum Lender would be permitted
to charge or collect by federal law or the law of the State of Texas (as
applicable). Any such excess interest or unauthorized fee shall, instead of
anything stated to the contrary, be applied first to reduce the principal
balance of this loan, and when the principal has been paid in full, be refunded
to Borrower. The right to accelerate maturity of sums due under this Note does
not include the right to accelerate any interest which has not otherwise accrued
on the date of such acceleration, and Lender does not intend to charge or
collect any unearned interest in the event of acceleration. All sums paid or
agreed to be paid to Lender for the use, forebearance or detention of sums due
hereunder shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full term of the loan evidenced by
this Note until payment in full so that the rate or amount of interest on
account of the loan evidenced hereby does not exceed the applicable usury
ceiling. Lender may delay or forgo enforcing any of its rights or remedies under
this Note without losing them. Each Borrower understands and agrees that, with
or without notice to Borrower, Lender may with respect to any other Borrower (a)
make one or more additional secured or unsecured loans or otherwise extend
additional credit; (b) alter, compromise, renew, extend, accelerate, or
otherwise change one or more times the time for payment or other terms any
indebtedness, including increases and decreases of the rate of interest on the
indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to
perfect,

<PAGE>

04-24-2000                      PROMISSORY NOTE                          Page 3
Loan No 9001                      (Continued)
================================================================================
and release any security, with or without the substitution of new collateral;
(d) apply such security and direct the order or manner of sale thereof,
including without limitation, any nonjudicial sale permitted by the terms of the
controlling security agreements, as lender in its discretion may determine; (e)
release, substitute, agree not to sue, or deal with any one or more of
Borrower's sureties, endorsers, or other guarantors on any terms or in any
manner Lender may choose; and (f) determine how, when and what application of
payments and credits shall be made on any other indebtedness owing by such other
borrower. Borrower and any other person who signs, guarantees or endorses this
Note, to the extent allowed by law, waive presentment, demand for payment,
protest, notice of dishonor, notice of intent to accelerate the maturity of this
Note, and notice of acceleration of the maturity of this Note. Upon any change
in the terms of this Note, and unless otherwise expressly stated in writing, no
party who signs this Note, whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that Lender
may renew or extend (repeatedly and for any length of time) this loan, or
release any party or guarantor or collateral; or impair, fail to realize upon or
perfect Lender's security interest in the collateral without the consent of or
notice to anyone. All such parties also agree that Lender may modify this loan
without the consent of or notice to anyone other than the party with whom the
modification is made. The obligations under this Note are joint and several.

PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE
PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS.
EACH BORROWER AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A
COMPLETED COPY OF THE NOTE.

The below listed Texas Corporations, each being bound by their President,
William A. Coskey:
INDUSTRIAL DATA SYSTEMS CORPORATION, Borrower
INDUSTRIAL DATA SYSTEMS, INC., Co-Borrower
THERMAIRE, INC., dba THERMAL CORPORATION, Co-Borrower
CONSTANT POWER MANUFACTURING, INC., Co-Borrower
IDS ENGINEERING, INC., Co-Borrower

/s/ William A. Coskey
-----------------------------
WILLIAM A. COSKEY

================================================================================<PAGE>

                                                                   EXHIBIT 10.37

[LOGO]

                                LOAN AGREEMENT

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
     Principal        Loan Date      Maturity       Loan No    Call    Collateral      Account      Officer      Initials
    <S>               <C>            <C>            <C>        <C>     <C>             <C>          <C>          <C>
    $1,250,000.00     04-24-2000     04-24-2001       9001      500        6073         3105442        952
-------------------------------------------------------------------------------------------------------------------------
                    References in the shaded area are for Lender's use only and do not limit the applicability
                                         of this document to any particular loan or item.
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

  Borrower: INDUSTRIAL DATA SYSTEMS CORPORATION    Lender: THE FROST NATIONAL
            (TIN: 88-0322261); ET.AL.                      BANK
            600 CENTURY PLAZA DRIVE, BUILDING 140          P.O. BOX 1600
            HOUSTON, TX 77073                              SAN ANTONIO, TX 78296
================================================================================

THIS LOAN AGREEMENT between INDUSTRIAL DATA SYSTEMS CORPORATION (referred to in
this Agreement individually and collectively as "Borrower") and THE FROST
NATIONAL BANK ("Lender") is made and executed on the following terms and
conditions. Borrower has received prior commercial loans from Lender or has
applied to Lender for a commercial loan or loans and other financial
accommodations, including those which may be described on any exhibit or
schedule attached to this Agreement. All such loans and financial
accommodations, together with all future loans and financial accommodations from
Lender to Borrower, are referred to in this Agreement individually as the "Loan"
and collectively as the "Loans." Borrower understands and agrees that: (a) in
granting, renewing, or extending any Loan, Lender is relying upon Borrower's
representations, warranties, and agreements, as set forth in this Agreement; (b)
the granting, renewing, or extending of any Loan by Lender at all times shall be
subject to Lender's sole judgment and discretion; and (c) all such Loans shall
be and shall remain subject to the following terms and conditions of this
Agreement.

TERM. This Agreement shall be effective as of April 24, 2000, and shall continue
thereafter until all Indebtedness of Borrower to Lender has been performed in
full and the parties terminate this Agreement in writing.

DEFINITIONS. The following words shall have the following meanings when used in
this Agreement. Terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code. All references
to dollar amounts shall mean amounts in lawful money of the United States of
America.

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

     Account. The word "Account" means a trade account, account receivable, or
     other right to payment for goods sold or services rendered owing to
     Borrower (or to a third party grantor acceptable to Lender).

     Account Debtor. The words "Account Debtor" mean the person or entity
     obligated upon an Account.

     Advance. The word "Advance" means a disbursement of Loan funds under this
     Agreement.

     Borrower. The word "Borrower" means individually and collectively
     INDUSTRIAL DATA SYSTEMS CORPORATION, INDUSTRIAL DATA SYSTEMS, INC.,
     THERMAIRE, INC. dba THERMAL CORPORATION, CONSTANT POWER MANUFACTURING,
     INC. and IDS ENGINEERING, INC. and all other persons and entities signing
     Borrowers' Note.

     Borrowing Base. The words "Borrowing Base" mean, as determined by Lender
     from time to time, the lesser of (a) $1,250,000.00 or; the sum of (i)
     80.000% of the aggregate amount of Eligible Accounts, or (ii) 50.000% of
     the aggregate amount of Eligible Inventory not to exceed 50% of the total
     borrowing base. In determining the amount of the Borrowing Base, only
     Eligible Accounts and Eligible Inventory of INDUSTRIAL DATA SYSTEMS
     CORPORATION shall be included.

     CERCLA. The word "CERCLA" means the Comprehensive Environmental Response,
     Compensation, and Liability Act of 1980, as amended.

     Collateral. The word "Collateral" means and includes without limitation all
     property and assets granted as collateral security for a Loan, whether real
     or personal property, whether granted directly or indirectly, whether
     granted now or in the future, and whether granted in the form of a security
     interest, mortgage, deed of trust, assignment, pledge, chattel mortgage,
     chattel trust, factor's lien, equipment trust, conditional sale, trust
     receipt, lien, charge, lien or title retention contract, lease or
     consignment intended as a security device, or any other security or lien
     interest whatsoever, whether created by law, contract, or otherwise. The
     word "Collateral" includes without limitation all collateral described
     below in the section titled "COLLATERAL."

     Eligible Accounts. The words "Eligible Accounts" mean, at any time, all of
     Borrower's Accounts which contain selling terms and conditions acceptable
     to Lender. The net amount of any Eligible Account against which Borrower
     may borrow shall exclude all returns, discounts, credits, and offsets of
     any nature. Unless otherwise agreed to by Lender in writing, Eligible
     Accounts do not include:

          (a)  Accounts with respect to which the Account Debtor is an officer,
          an employee or agent of Borrower.

          (b)  Accounts with respect to which the Account Debtor is a subsidiary
          of, or affiliated with or related to Borrower or its shareholders,
          officers, or directors.

          (c)  Accounts with respect to which goods are placed on consignment,
          guaranteed sale, or other terms by reason of which the payment by the
          Account Debtor may be conditional.

          (d)  Accounts with respect to which the Account Debtor is not a
          resident of the United States, except to the extent such Accounts are
          supported by insurance, bonds or other assurances satisfactory to
          Lender.

          (e)  Accounts with respect to which Borrower is or may become liable
          to the Account Debtor for goods sold or services rendered by the
          Account Debtor to Borrower.

          (f)  Accounts which are subject to dispute, counterclaim, or setoff.

          (g)  Accounts with respect to which the goods have not been shipped or
          delivered, or the services have not been rendered, to the Account
          Debtor.

          (h)  Accounts with respect to which Lender, in its sole discretion,
          deems the creditworthiness or financial condition of the Account
          Debtor to be unsatisfactory.

          (i)  Accounts of any Account Debtor who has filed or has had filed
          against it a petition in bankruptcy or an application for relief under
          any provision of any state or federal bankruptcy, insolvency, or
          debtor-in-relief acts; or who has had appointed a trustee, custodian,
          or receiver for the assets of such Account Debtor; or who has made an
          assignment for the benefit of creditors or has become insolvent or
          fails generally to pay its debts (including its payrolls) as such
          debts become due.

<PAGE>

04-24-2000                        LOAN AGREEMENT                         Page 2
Loan No 9001                       (Continued)

================================================================================

          (j)  Accounts with respect to which the Account Debtor is the United
          States government or any department or agency of the United States.

          (k)  Accounts which have not been paid in full within 90 days from the
          invoice date. The entire balance of any Account of any single Account
          debtor will be ineligible whenever the portion of the Account which
          has not been paid within 90 days from the invoice date is in excess of
          20.000% of the total amount outstanding on the Account.

     Eligible Inventory. The words "Eligible Inventory" mean, at any time, all
     of Borrower's Inventory as defined below except:

          (a)  Inventory which is not owned by Borrower free and clear of all
          security interests, liens, encumbrances, and claims of third parties.

          (b)  Inventory which Lender, in its sole discretion, deems to be
          obsolete, unsalable, damaged, defective, or unfit for further
          processing.

     ERISA. The word "ERISA" means the Employee Retirement Income Security Act
     of 1974, as amended.

     Event of Default. The words "Event of Default" mean and include without
     limitation any of the Events of Default set forth below in the section
     titled "EVENTS OF DEFAULT."

     Expiration Date. The words "Expiration Date" mean the date of termination
     of Lender's commitment to lend under this Agreement.

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

     Guarantor. The word "Guarantor" means and includes without limitation each
     and all of the guarantors, sureties, and accommodation parties in
     connection with any Indebtedness.

     Indebtedness. The word "Indebtedness" means and includes without limitation
     all Loans, together with all other obligations, debts and liabilities of
     Borrower to Lender, or any one or more of them, as well as all claims by
     Lender against Borrower, or any one or more of them; whether now or
     hereafter existing, voluntary or involuntary, due or not due, absolute or
     contingent, liquidated or unliquidated; whether Borrower may be liable
     individually or jointly with others; whether Borrower may be obligated as a
     guarantor, surety, or otherwise.

     Inventory. The word "Inventory" means all of Borrower's raw materials, work
     in process, finished goods, merchandise, parts and supplies, of every kind
     and description, and goods held for sale or lease or furnished under
     contracts of service in which Borrower now has or hereafter acquires any
     right, whether held by Borrower or others, and all documents of title,
     warehouse receipts, bills of lading, and all other documents of every type
     covering all or any part of the foregoing. Inventory includes inventory
     temporarily out of Borrower's custody or possession and all returns on
     Accounts.

     Lender. The word "Lender" means THE FROST NATIONAL BANK, its successors and
     assigns.

     Line of Credit. The words "Line of Credit" mean the credit facility
     described in the Section titled "LINE OF CREDIT" below.

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

     Note. The word "Note" means and includes without limitation Borrower's
     promissory note or notes, if any, evidencing Borrower's Loan obligations in
     favor of Lender, as well as any substitute, replacement or refinancing note
     or notes therefor.

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

     Related Documents. The words "Related Documents" mean and include without
     limitation all promissory notes, credit agreements, loan agreements,
     environmental agreements, guaranties, security agreements, mortgages, deeds
     of trust, and all other instruments, agreements and documents, whether now
     or hereafter existing, executed in connection with the Indebtedness.

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

     Security Interest. The words "Security Interest" mean and include without
     limitation any type of collateral security, whether in the form of a lien,
     charge, mortgage, deed of trust, assignment, pledge, chattel mortgage,
     chattel trust, factor's lien, equipment trust, conditional sale, trust
     receipt, lien or title retention contract, lease or consignment intended as
     a security device, or any other security or lien interest whatsoever,
     whether created by law, contract, or otherwise.

     SARA. The word "SARA" means the Superfund Amendments and Reauthorization
     Act of 1986 as now or hereafter amended.

LINE OF CREDIT. Lender agrees to make Advances to Borrower from time to time
from the date of this Agreement to the Expiration Date, provided the aggregate
amount of such Advances outstanding at any time does not exceed the Borrowing
Base. Within the foregoing limits, Borrower may borrow, partially or wholly
prepay, and reborrow under this Agreement as follows.

     Conditions Precedent to Each Advance. Lender's obligation to make any
     Advance to or for the account of Borrower under this Agreement is subject
     to the following conditions precedent, with all documents, instruments,
     opinions, reports, and other items required under this Agreement to be in
     form and substance satisfactory to Lender:

          (a)  Lender shall have received evidence that this Agreement and all
          Related Documents have been duly authorized, executed, and delivered
          by Borrower to Lender.

          (b)  Lender shall have received such opinions of counsel, supplemental
          opinions, and documents as Lender may request.

          (c)  The security interests in the Collateral shall have been duly
          authorized, created, and perfected with first lien priority and shall
          be in full force and effect.

          (d)  All guaranties required by Lender for the Line of Credit shall
          have been executed by each Guarantor, delivered to Lender, and be in
          full force and effect.

          (e)  Lender, at its option and for its sole benefit, shall have
          conducted an audit of Borrower's Accounts, Inventory, books, records,
          and operations, and Lender shall be satisfied as to their condition.

<PAGE>

04-24-2000                      LOAN AGREEMENT                            Page 3
Loan No 9001                      (continued)
================================================================================

     (f) Borrower shall have paid to Lender all fees, costs, and expenses
     specified in this Agreement and the Related Documents as are then due and
     payable.

     (g) There shall not exist at the time of any Advance a condition which
     would constitute an Event of Default under this Agreement, and Borrower
     shall have delivered to Lender the compliance certificate called for in the
     paragraph below titled "Compliance Certificate."

  Making Loan Advances. Advances under the Line of Credit may be requested
  orally by authorized persons. Lender may, but need not, require that all oral
  requests be confirmed in writing. Each Advance shall be conclusively deemed to
  have been made at the request of and for the benefit of Borrower (a) when
  credited to any deposit account of Borrower maintained with Lender or (b) when
  advanced in accordance with the instructions of an authorized person. Lender,
  at its option, may set a cutoff time, after which all requests for Advances
  will be treated as having been requested on the next succeeding Business Day.

  Mandatory Loan Repayments. If at any time the aggregate principal amount of
  the outstanding Advances shall exceed the applicable Borrowing Base, Borrower,
  immediately upon written or oral notice from Lender, shall pay to Lender an
  amount equal to the difference between the outstanding principal balance of
  the Advances and the Borrowing Base. On the Expiration Date, Borrower shall
  pay to Lender in full the aggregate unpaid principal amount of all Advances
  then outstanding and all accrued unpaid interest, together with all other
  applicable fees, costs and charges, if any, not yet paid.

  Loan Account. Lender shall maintain on its books a record of account in which
  Lender shall make entries for each Advance and such other debits and credits
  as shall be appropriate in connection with the credit facility. Lender shall
  provide Borrower with periodic statements of Borrower's account, which
  statements shall be considered to be correct and conclusively binding on
  Borrower unless Borrower notifies Lender to the contrary within thirty (30)
  days after Borrower's receipt of any such statement which Borrower deems to be
  incorrect.

COLLATERAL. To secure payment of the Line of Credit and performance of all other
Loans, obligations and duties owed by Borrower to Lender, Borrower (and others,
if required) shall grant to Lender Security Interests in such property and
assets as Lender may require (the "Collateral"), including without limitation
Borrower's present and future Accounts, general intangibles, and Inventory.
Lender's Security Interests in the Collateral shall be continuing liens and
shall include the proceeds and products of the Collateral, including without
limitation the proceeds of any insurance. With respect to the Collateral,
Borrower agrees and represents and warrants to Lender:

  Perfection of Security Interests. Borrower agrees to execute such financing
  statements and to take whatever other actions are requested by Lender to
  perfect and continue Lender's Security Interests in the Collateral. Upon
  request of Lender, Borrower will deliver to Lender any and all of the
  documents evidencing or constituting the Collateral, and Borrower will note
  Lender's interest upon any and all chattel paper if not delivered to Lender
  for possession by Lender. Contemporaneous with the execution of this
  Agreement, Borrower will execute one or more UCC financing statements and any
  similar statements as may be required by applicable law, and will file such
  financing statements and all such similar statements in the appropriate
  location or locations. Borrower hereby appoints Lender as its irrevocable
  attorney-in-fact for the purpose of executing any documents necessary to
  perfect or to continue any Security Interest. Lender may at any time, and
  without further authorization from Borrower, file a carbon, photograph,
  facsimile, or other reproduction of any financing statement for use as a
  financing statement. Borrower will reimburse Lender for all expenses for the
  perfection, termination, and the continuation of the perfection of Lender's
  security interest in the Collateral. Borrower promptly will notify Lender of
  any change in Borrower's name including any change to the assumed business
  names of Borrower. Borrower also promptly will notify Lender of any change in
  Borrower's Social Security Number or Employer Identification Number. Borrower
  further agrees to notify Lender in writing prior to any change in address or
  location of Borrower's principal governance office or should Borrower merge or
  consolidate with any other entity.

  Collateral Records. Borrower does now, and at all times hereafter shall, keep
  correct and accurate records of the Collateral, all of which records shall be
  available to Lender or Lender's representative upon demand for inspection and
  copying at any reasonable time. With respect to the Accounts, Borrower agrees
  to keep and maintain such records as Lender may require, including without
  limitation information concerning Eligible Accounts and Account balances and
  agings. With respect to the Inventory, Borrower agrees to keep and maintain
  such records as Lender may require, including without limitation information
  concerning Eligible Inventory and records itemizing and describing the kind,
  type, quality, and quantity of Inventory, Borrower's Inventory costs and
  selling prices, and the daily withdrawals and additions to Inventory.

  Collateral Schedules. Concurrently with the execution and delivery of this
  Agreement, Borrower shall execute and deliver to Lender schedules of Accounts
  and Inventory and Eligible Accounts and Eligible Inventory, in form and
  substance satisfactory to the Lender. Thereafter and at such frequency as
  Lender shall require, Borrower shall execute and deliver to Lender such
  supplemental schedules of Eligible Accounts and Eligible Inventory and such
  other matters and information relating to the Accounts and Inventory as Lender
  may request.

  Representations and Warranties Concerning Accounts. With respect to the
  Accounts, Borrower represents and warrants to Lender: (a) Each Account
  represented by Borrower to be an Eligible Account for purposes of this
  Agreement conforms to the requirements of the definition of an Eligible
  Account; (b) All Account information listed on schedules delivered to Lender
  will be true and correct, subject to immaterial variance; and (c) Lender, its
  assigns, or agents shall have the right at any time and at Borrower's expense
  to inspect, examine, and audit Borrower's records and to confirm with Account
  Debtors the accuracy of such Accounts.

  Representations and Warranties Concerning Inventory. With respect to the
  Inventory, Borrower represents and warrants to Lender: (a) All Inventory
  represented by Borrower to be Eligible Inventory for purposes of this
  Agreement conforms to the requirements of the definition of Eligible
  Inventory; (b) All Inventory values listed on schedules delivered to Lender
  will be true and correct, subject to immaterial variance; (c) The value of the
  Inventory will be determined on a consistent accounting basis; (d) Except as
  agreed to the contrary by Lender in writing, all Eligible Inventory is now and
  at all times hereafter will be in Borrower's physical possession and shall not
  be held by others on consignment, sale on approval, or sale or return; (e)
  Except as reflected in the Inventory schedules delivered to Lender, all
  Eligible Inventory is now and at all times hereafter will be of good and
  merchantable quality, free from defects; (f) Eligible Inventory is not now and
  will not at any time hereafter be stored with a bailee, warehouseman, or
  similar party without Lender's prior written consent, and, in such event,
  Borrower will concurrently at the time of bailment cause any such bailee,
  warehouseman, or similar party to issue and deliver to Lender, in form
  acceptable to Lender, warehouse receipts in Lender's name evidencing the
  storage of Inventory; and (g) Lender, its assigns, or agents shall have the
  right at any time and at Borrower's expense to inspect and examine the
  Inventory and to check and test the same as to quality, quantity, value, and
  condition.

MULTIPLE BORROWERS. Although the Note has been executed by multiple Borrowers,
this Agreement has been executed only by INDUSTRIAL DATA SYSTEMS CORPORATION.
With the exception of the specific representations, warranties and convenants
set forth in the sections of this Agreement titled "REPRESENTATIONS AND
WARRANTIES," "AFFIRMATIVE COVENANTS" AND NEGATIVE COVENANTS," the word
"Borrower" as used herein shall include all Borrowers. Borrower understands and
agrees that, with or without notice to Borrower, Lender may with respect to any
other Borrower (a) make one of more additional secured or unsecured loans or
otherwise extend additional credit; (b) alter, compromise, renew, extend,
accelerate, or otherwise change one or more times the time for payment or other
terms any indebtedness, including increases and decreases of the rate of
interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail or
decide not to perfect, and release any security, with or without the
substitution of new collateral; (d) release, substitute, agree not to sue, or
deal with any one or more of Borrower's sureties, endorsers, or other guarantors
on any terms or in any manner Lender may choose; (e) determine how, when and
what application of payments and credits shall be made on any indebtedness; (f)
apply such security and direct the order or manner of sale thereof, including
without limitation, any nonjudicial sale permitted by the terms of the
controlling security agreement or deed of trust, as Lender in its discretion may
determine; (g) sell, transfer, assign, or

<PAGE>

04-24-2000                      LOAN AGREEMENT                            Page 4
Loan No 9001                      (Continued)
================================================================================
grant participations in all or any part of the indebtedness; (h) exercise or
refrain from exercising any rights against Borrower or others, or otherwise act
or refrain from acting; (i) settle or compromise any indebtedness; and (j)
subordinate the payment of all or any part of any indebtedness of Borrower to
Lender to the payment of any liabilities which may be due Lender or others.

REPRESENTATIONS AND WARRANTIES.  The reference to "Borrower" in this
REPRESENTATIONS AND WARRANTIES" section of this Agreement means INDUSTRIAL DATA
SYSTEMS CORPORATION only and does not apply to any other co-borrower. Borrower
represents and warrants to Lender, as of the date of this Agreement, as of the
date of each disbursement of Loan proceeds, as of the date of any renewal,
extension or modification of any Loan, and at all times any indebtedness exists:

     Organization. Borrower is a corporation which is duly organized, validly
     existing, and in good standing under the laws of the State of Nevada and is
     validly existing and in good standing in all states in which Borrower is
     doing business. Borrower has the full power and authority to own its
     properties and to transact the businesses in which it is presently engaged
     or presently proposes to engage. Borrower also is dully qualified as a
     foreign corporation and is in good standing in all states in which the
     failure to so qualify would have a material adverse effect on its
     businesses or financial condition.

     Authorization. The execution, delivery, and performance of this Agreement
     and all Related Documents by Borrower, to the extent to be executed,
     delivered or performed by Borrower, have been duly authorized by all
     necessary action by Borrower; do not require the consent or approval of any
     other person, regulatory authority or governmental body; and do not
     conflict with, result in a violation of, or constitute a default under (a)
     any provision of its articles of incorporation or organization, or bylaws,
     or any agreement or other instrument binding upon Borrower or (b) any law,
     governmental regulation, court decree, or order applicable to Borrower.

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

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

     Properties. Except for Permitted Liens, Borrower owns and has good title to
     all of Borrower's properties free and clear of all Security Interests, and
     has not executed any security documents or financing statements relating to
     such properties. All of Borrower's properties are titled in Borrower's
     legal name, and Borrower has not used, or filed a financing statement
     under, any other name for at least the last five (5) years.

          Hazardous Substances. The terms "hazardous waste," "hazardous
     substance," "disposal," "release," and "threatened release," as used in
     this Agreement, shall have the same meanings as set forth in the "CERCLA,"
     "SARA," the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801,
     et seq., te Resource Conservation and Recovery Act, 42 U.S.C. Section 6901,
     et seq., or other applicable state of FederaLlaws, rules, or regulations
     adopted pursuant to any of the foregoing. Except as disclosed to and
     acknowledged by Lender in writing, Borrower represents and warrants that:
     (a) During the period of Borrower's ownership of the properties, there has
     been no use, generation, manufacture, storage, treatment, disposal, release
     or threatened release of any hazardous waste or substance by any person on,
     under, about or from any of the properties. (b) Borrower has no knowledge
     of, or reason to believe that there has been (i) any use, generation,
     manufacture, storage, treatment, disposal, release, or threatened release
     of any hazardous waste or substance on, under, about or from the properties
     by any prior owners or occupants of any of the properties, or (ii) any
     actual or threatened litigation or claims of any kind by any person
     relating to such matters. (c) Neither Borrower nor any tenant, contractor,
     agent or other authorized user of any of the properties shall use,
     generate, manufacture, store, treat, dispose of, or release any hazardous
     waste or substance on, under, about or from any of the properties; and any
     such activity shall be conducted in compliance with all applicable federal,
     state, and local laws, regulations, and ordinances, including without
     limitation those laws, regulations and ordinances described above. Borrower
     authorizes Lender and its agents to enter upon the properties to make such
     inspections and tests as Lender may deem appropriate to determine
     compliance of the properties with this section of the Agreement. Any
     inspections or tests made by Lender shall be at Borrower's expense and for
     Lender's purposes only and shall not be construed to create any
     responsibility or liability on the part of Lender to Borrower or to any
     other person. The representations and warranties contained herein are based
     on Borrower's due diligence in investigating the properties for hazardous
     waste and hazardous substances. Borrower hereby (a) releases and waives any
     future claims against Lender for indemnity or contribution in the event
     Borrower becomes liable for cleanup or other costs under any such laws, and
     (b) agrees to indemnify and hold harmless Lender against any and all
     claims, losses, liabilities, damages, penalties, and expenses which Lander
     may directly or indirectly sustain or suffer resulting from a breach of
     this section of the Agreement or as a consequence of any use, generation,
     manufacture, storage,disposal, release or threatened release of a hazardous
     waste or substance on the properties. The provisions of this section of the
     Agreement, including the obligation to indemnify, shall survive the payment
     of the indebtedness and the termination or expiration of this Agreement and
     shall not be affected by Lender's acquisition of any interest in any of the
     properties, whether by foreclosure or otherwise.

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

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

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

     Binding Effect. This Agreement, the Note, all Security Agreements directly
     or indirectly securing repayment of Borrower's Loan and Note and all of the
     Related Documents are binding upon Borrower as well as upon Borrower's
     successors, representatives and assigns, and are legally enforceable in
     accordance with their respective terms.

     Commercial Purposes. Borrower intends to use the Loan proceeds solely for
     business or commercial related purposes.

     Employee Benefit Plans. Each employee benefit plan as to which Borrower may
     have any liability compiles in all material respects with all applicable
     requirements of law and regulations and (i) no Reportable Event nor
     Prohibited Transaction (as defined in ERISA) has occurred with respect to
     any such plan, (ii) Borrower has not withdrawn from any such plan or
     initiated steps to do so. (iii) no steps have been taken to terminate any
     such plan, and (iv) there are no unfunded liabilities other than those
     previously disclosed to Lender in writing.

     Location of Borrower's Offices and Records. Borrowers place of business, or
     Borrower's Chief executive office, if Borrwer has more than one place of
     business, is located at 600 CENTURY PLAZA DRIVE, BUILDING 140, HOUSTON, TX
     77073. Unless Borrower has designated otherwise in writing this location is
     also the office or offices where Borrower keeps its records concerning the
     Collateral.

     Information. All information heretofore or contemporaneously herewith
     furnished by Borrower to Lender for the purposes of or in connection with
     this Agreement or any transaction contemplated hereby is, and all
     information hereafter furnished by or on behalf of Borrower to Lender will
     be,

<PAGE>

04-24-2000                      LOAN AGREEMENT                           Page 5
Loan No 9001                      (Continued)

================================================================================

     true and accurate in every material respect on the date as of which such
     information is dated or certified; and none of such information is or will
     be incomplete by omitting to state any material fact necessary to make such
     information not misleading.

     Survival of Representations and Warranties. Borrower understands and agrees
     that Lender, without independent investigation, is relying upon the above
     representations and warranties in extending Loan Advances to Borrower.
     Borrower further agrees that the foregoing representations and warranties
     shall be continuing in nature and shall remain in full force and effect
     until such time as Borrower's indebtedness shall be paid in full, or until
     this Agreement shall be terminated in the manner provided above, whichever
     is the last to occur.

AFFIRMATIVE COVENANTS. The reference to "Borrower" in this "AFFIRMATIVE
COVENANTS" section of this Agreement means INDUSTRIAL DATA SYSTEMS CORPORATION
only and does not apply to any other co-borrower. Borrower covenants and agrees
with Lender that, while this Agreement is in effect, Borrower will:

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

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

     Financial Statements. Furnish Lender with, as soon as available, but in no
     event later than one hundred twenty (120) days after the end of each fiscal
     year, Borrower's balance sheet and income statement for the year ended,
     audited by a certified public accountant satisfactory to Lender, and, as
     soon as available, but in no event later than thirty (30) days after the
     end of each fiscal quarter, Borrrower's balance sheet and profit and loss
     statement for the period ended, prepared and certified as correct to the
     best knowledge and belief by Borrower's chief financial officer or other
     officer or person acceptable to Lender. All financial reports required to
     be provided under this Agreement shall be prepared in accordance with
     generally accepted accounting principles, applied on a consistent basis,
     and certified by Borrower as being true and correct.

     Additional Information. Furnish such additional information and statements,
     lists of assets and liabilities, agings of receivables and payables,
     inventory schedules, budgets, forecasts, tax returns, and other reports
     with respect to Borrower's financial condition and business operations as
     Lender may request from time to time.

     Insurance. Maintain fire and other risk insurance, public liability
     insurance, and such other insurance as Lender may require with respect to
     Borrower's properties and operations, in form, amounts, and coverages
     reasonably acceptable to Lender. BORROWER MAY FURNISH THE REQUIRED
     INSURANCE WHETHER THROUGH EXISTING POLICIES OWNED OR CONTROLLED BY BORROWER
     OR THROUGH EQUIVALENT INSURANCE FROM ANY INSURANCE COMPANY AUTHORIZED TO
     TRANSACT BUSINESS IN THE STATE OF TEXAS. If Borrower fails to provide any
     required insurance or fails to continue such insurance in force, Lender
     may, but shall not be required to, do so at Borrower's expense, and the
     cost of the insurance will be added to the Indebtedness. If any such
     insurance is procured by Lender at a rate or charge not fixed or approved
     by the State Board of Insurance, Borrower will be so notified, and Borrower
     will have the option for five (5) days of furnishing equivalent insurance
     through any insurer authorized to transact business in Texas. Borrower,
     upon request of Lender, will deliver to Lender from time to time the
     policies or certificates of insurance in form satisfactory to Lender,
     including stipulations that coverages will not be cancelled or diminished
     without at least ten (10) days' prior written notice to Lender. Each
     insurance policy also shall include an endorsement providing that coverage
     in favor of Lender will not be impaired in any way by any act, omission or
     default of Borrower or any other person. In connection with all policies
     covering assets in which Lender holds or is offered a security interest for
     the Loans, Borrower will provide Lender with such loss payable or other
     endorsements as Lender may require.

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

     Guaranties. Prior to disbursement of any Loan proceeds, furnish executed
     guaranties of the Loans in favor of Lender, executed by the guarantor named
     below, on Lender's forms, and in the amount and under the conditions
     spelled out in those guaranties.

          Guarantor                                    Amount
          ---------                                    ------

          WILLIAM A. COSKEY AND HULDA L. COSKEY      $625,000.00

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

     Loan Proceeds. Use all Loan proceeds solely for the following specific
     purposes: Revolving Line of Credit to support working capital.

     Taxes, Charges and Liens. Pay and discharge when due all of its
     indebtedness and obligations, including without limitation all assessments,
     taxes, governmental charges, levies and liens, of every kind and nature,
     imposed upon Borrower or its properties, income, or profits, prior to the
     date on which penalties would attach, and all lawful claims that, if
     unpaid, might become a lien or charge upon any of Borrower's properties,
     income, or profits. Provided however, Borrower will not be required to pay
     and discharge any such assessment, tax, charge, levy, lien or claim so long
     as (a) the legality of the same shall be contested in good faith by
     appropriate proceedings, and (b) Borrower shall have established on its
     books adequate reserves with respect to such contested assessment, tax,
     charge, levy, lien, or claim in accordance with generally accepted
     accounting practices. Borrower, upon demand of Lender, will furnish to
     Lender evidence of payment of the assessments, taxes, charges, levies,
     liens and claims and will authorize the appropriate governmental official
     to deliver to Lender at any time a written statement of any assessments,
     taxes, charges, levies, liens and claims against Borrower's properties,
     income, or profits.

     Performance. Perform and comply with all terms, conditions, and provisions
     set forth in this Agreement and in the Related Documents in a timely
     manner, and promptly notify Lender if Borrower learns of the occurrence of
     any event which constitutes an Event of Default under this Agreement or
     under any of the Related Documents.

     Operations. Maintain executive and management personnel with substantially
     the same qualifications and experience as the present executive and
     management personnel; provide written notice to Lender of any change in
     executive and management personnel; conduct its business affairs in a
     reasonable and prudent manner and in compliance with all applicable
     federal, state and municipal laws, ordinances, rules and regulations
     respecting its properties, charters, businesses and operations, including
     without limitation, compliance with the Americans With Disabilities Act and
     with all minimum funding standards and other requirements of ERISA and
     other laws applicable to Borrower's employee benefit plans.

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

<PAGE>

04-24-2000                           LOAN AGREEMENT                       Page 6
Loan No 9001                           (Continued)
================================================================================
     notify such party to permit Lender free access to such records at all
     reasonable times and to provide Lender with copies of any records it may
     request, all at Borrower's expense.

     Compliance Certificate. Unless waived in writing by Lender, provide Lender
     at lease annually and at the time of each disbursement of Loan proceeds
     with a certificate executed by Borrower's chief financial officer, or other
     officer or person acceptable to Lender, certifying that the representations
     and warranties set forth in this Agreement are true and correct as of the
     date of the certificate and further certifying that, as of the date of the
     certificate, no Event of Default exists under this Agreement.

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

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

RECOVERY OF ADDITIONAL COSTS. If the imposition of or any change in any law,
rule, regulation or guideline, or the interpretation or application of any
thereof by any court or administrative or governmental authority (including any
request or policy not having the force of law) shall impose, modify or make
applicable any taxes (except U.S. federal, state or local income or franchise
taxes imposed on Lender), reserve requirements, capital adequacy requirements or
other obligations which would (a) increase the cost to Lender for extending or
maintaining the credit facilities to which this Agreement relates, (b) reduce
the amounts payable to Lender under this Agreement or the Related Documents, or
(c) reduce the rate of return on Lender's capital as a consequence of Lender's
obligations with respect to the credit facilities to which this Agreement
relates, then Borrower agrees to pay Lender such additional amounts as will
compensate Lender therefor, within five (5) days after Lender's written demand
for such payment, which demand shall be accompanied by an explanation of such
imposition or charge and a calculation in reasonable detail of the additional
amounts payable by Borrower, which explanation and calculations shall be
conclusive in the absence of manifest error.

NEGATIVE COVENANTS. The reference to "Borrower" in this "NEGATIVE COVENANTS"
section of this Agreement means INDUSTRIAL DATA SYSTEMS CORPORATION only and
does not apply to any other co-borrower. Borrower covenants and agrees with
Lender that while this Agreement is in effect, Borrower shall not, without the
prior written consent of Lender:

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

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

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

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

FACSIMILE DOCUMENTS AND SIGNATURE. For purposes of negotiating and finalizing
this document, if this document is transmitted by facsimile machine ("fax"), it
shall be treated for all purposes as an original document. Additionally, the
signature of any party on this document transmitted by way of a fax machine
shall be considered for all purposes as an original signature. Any such faxed
document shall be considered to have the same binding legal effect as an
original document. At the request of any party, any faxed document shall be re-
executed by each signatory party in an original form.

BORROWING BASE CERTIFICATES AND ACCOUNTS RECEIVABLE AGING REPORTS. Borrower
shall furnish to Lender monthly borrowing base certificates and an aging of
trade accounts receivable within thirty (30) days after the end of each month.

WAIVER OF RIGHT TO TRIAL BY JURY. THE PARTIES TO THIS AGREEMENT HEREBY WAIVE
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE
PARTIES HERETO AGAINST THE OTHER TO ENFORCE THIS AGREEMENT, TO COLLECT DAMAGES
FOR THE BREACH OF THIS AGREEMENT, OR WHICH IN ANY OTHER WAY ARISE OUT OF, ARE
CONNECTED TO OR ARE RELATED TO THIS AGREEMENT OR THE SUBJECT MATTER OF THIS
AGREEMENT. ANY SUCH ACTION SHALL BE TRIED BY THE JUDGE WITHOUT A JURY.

TANGIBLE NET WORTH. Borrower shall maintain throughout the term of this
Agreement a minimum Tangible Net Worth of not less than $3,250,000.00. "Tangible
Net Worth" is defined as Net Worth minus intangibles minus accounts/notes
receivable from stockholders or related parties.

DEBT TO WORTH RATIO. Borrower shall maintain throughout the term of this
Agreement a ratio of Total Liabilities to Tangible Net Worth of not more than
1.25 to 1.00. "Total Liabilities" shall be defined in accordance with generally
accepted accounting principles (GAAP). "Tangible Net Worth" shall be defined as
set forth above.

CURRENT RATIO. Borrower shall maintain thoughout the term of this Agreement a
ratio of Current Assets to Current Liabilities of not less than 2.25 to 1.00.
"Current Assets" and "Current Liabilities" shall be defined in accordance with
GAAP.

RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest in,
and hereby assigns, conveys, delivers, pledges and transfers in
<PAGE>

04-24-2000                         LOAN AGREEMENT                     Page 7
Loan No 9001                        (Continued)
================================================================================

Lender all Borrower's right, title and interest in and to, Borrower's accounts
with Lender (whether checking, savings, or some other account), including
without limitation all accounts held jointly with someone else and all accounts
Borrower may open in the future, excluding however all IRA and Keogh accounts,
and all trust accounts for which the grant of a security interest would be
prohibited by law. Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the Indebtedness against
any and all such accounts.

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

     Default on Indebtedness. Failure of Borrower to make any payment when due
     on the Loans.

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

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

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

     Defective Collaterization. This Agreement or any of the Related Documents
     ceases to be in full force and effect (including failure of any Security
     Agreement to create a valid and perfected Security Interest) at any time
     and for any reason.

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

     Creditor or Forfeiture Proceedings. Commencement of foreclosure or
     forfeiture proceedings, whether by judicial proceeding, self-help,
     repossession or any other method, by any creditor of Borrower, any creditor
     of any Grantor against any collateral securing the Indebtedness, or by any
     governmental agency. This includes a garnishment, attachment, or levy on
     or of any of Borrower's deposit accounts with Lender.

     Events Affecting Guarantor. Any of the preceding events occurs with respect
     to any Guarantor of any of the Indebtedness or any Guarantor dies or
     becomes incompetent, or revokes or disputes the validity of, or liability
     under, any Guaranty of the Indebtedness.

     Events Affecting Co-Borrowers. Any of the preceding events occurs with
     respect to any co-borrower of any of the Indebtedness or any co-borrower
     dies or becomes incompetent, or revokes or disputes the validity of, or
     liability under, any of the Indebtedness.

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

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

     Insecurity. Lender, in good faith, deems itself insecure.

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

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

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

     Applicable Law. This Agreement has been delivered to Lender and accepted by
     Lender in the State of Texas. If there is a lawsuit, and if the transaction
     evidenced by this Agreement occurred in Harris County, Borrower agrees upon
     Lender's request to submit the jurisdiction of the courts of Harris County,
     the State of Texas. This Agreement shall be governed by and construed in
     accordance with the laws of the State of Texas and applicable Federal laws.

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

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

     Costs and Expenses. Except as otherwise limited by the Texas Finance Code,
     Borrower agrees to pay upon demand all of Lender's expenses, including
     without limitation attorneys' fees, incurred in connection with the
     preparation, execution, enforcement, modification and collection of this
     Agreement or in connection with the Loans made pursuant to this Agreement.
     Lender may hire one or more attorneys to help collect the Indebtedness if
     Borrower does not pay, and Borrower will pay Lender's reasonable attorneys'
     fees. Borrower also will pay Lender all other amounts actually incurred by
     Lender as court costs, lawful fees for filing, recording, or releasing to
     any public office any instrument securing the Indebtedness; the reasonable
     cost actually expended for repossessing, storing, preparing for sale, and
     selling any security; and fees for noting a lien on or transferring a
     certificate of title to any motor vehicle offered as security for the
     Indebtedness, or premiums or identifiable charges

<PAGE>

04-24-2000                         LOAN AGREEMENT                        Page 8
Loan No 9001                        (Continued)
================================================================================
     received in connection with the sale of authorized insurance.

     Notices. All notices required to be given under this Agreement shall be
     given in writing, may be sent by telefacsimile (unless otherwise required
     by law), and shall be effective when actually delivered or when deposited
     with a nationally recognized overnight courier or deposited in the United
     States mail, first class, postage prepaid, addressed to the party to whom
     the notice is to be given at the address shown above. Any party may change
     its address for notices under this Agreement by giving formal written
     notice to the other parties, specifying that the purpose of the notice is
     to change the party's address. To the extent permitted by applicable law,
     if there is more than one Borrower, notice to any Borrower will constitute
     notice to all Borrowers. For notice purposes, Borrower will keep Lender
     informed at all times of Borrower's current address(es).

     Payment of Interest and Fees. Notwithstanding any other provision of this
     Agreement or any provision of any Related Document, Borrower does not agree
     or intend to pay, and Lender does not agree or intend to contract for,
     charge, collect, take, reserve or receive (collectively referred to herein
     as "charge or collect"), any amount in the nature of interest or in the
     nature of a fee for this Loan, or any other Loan with Borrower, which would
     in any way or event (including demand, prepayment, or acceleration) cause
     Lender to charge or collect more for the Loan than the maximum Lender would
     be permitted to charge or collect by any applicable federal law or any
     applicable law of the State of Texas. Any such excess interest or
     unauthorized fee shall, instead of anything stated to the contrary, be
     applied first to reduce the unpaid principal balance of the Loan, and when
     the principal has been paid in full, be refunded to Borrower. The right to
     accelerate maturity of sums due under this Agreement does not include the
     right to accelerate any interest which has not otherwise accrued on the
     date of such acceleration, and Lender does not intend to charge or collect
     any unearned interest in the event of acceleration. All sums paid or agreed
     to be paid to Lender for the use, forbearance or detention of sums paid
     under this Agreement shall, to the extent permitted by applicable law, be
     amortized, prorated, allocated and spread throughout the full term of the
     loan evidenced by this Agreement until payment in full so that the rate or
     amount of interest on account of the loan evidenced by this Agreement does
     not exceed the applicable usury ceiling. When the term "interest" is used
     in the context of "payment of interest," it is the intent of the parties
     that all such references shall be to accrued and unpaid interest, and in no
     event will Borrower ever be required to pay unearned interest.

     Severability. If a court of competent jurisdiction finds any provision of
     this Agreement to be invalid or unenforceable as to any person or
     circumstance, such finding shall not render that provision invalid or
     unenforceable as to any other persons or circumstances. If feasible, any
     such offending provision shall be deemed to be modified to be within the
     limits of enforceability or validity; however, if the offending provision
     cannot be so modified, it shall be stricken and all other provisions of
     this Agreement in all other respects shall remain valid and enforceable.

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

     Survival. All warranties, representations, and covenants made by Borrower
     in this Agreement or in any certificate or other instrument delivered by
     Borrower to Lender under this Agreement shall be considered to have been
     relied upon by Lender and will survive the making of the Loan and delivery
     to Lender of the Related Documents, regardless of any investigation made by
     Lender or on Lender's behalf.

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

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

BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS LOAN AGREEMENT, AND
BORROWER AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED AS OF APRIL 24, 2000.

The below listed Texas Corporations, each being bound by their President,
William A. Coskey:
INDUSTRIAL DATA SYSTEMS CORPORATION, Borrower
INDUSTRIAL DATA SYSTEMS, INC., Co-Borrower
THERMAIRE, INC., dba THERMAL CORPORATION, Co-Borrower
CONSTANT POWER MANUFACTURING, INC., Co-Borrower
IDS ENGINEERING, INC., Co-Borrower

/s/ William A. Coskey
------------------------
WILLIAM A. COSKEY

LENDER:

THE FROST NATIONAL BANK

By: /s/ [ILLEGIBLE]^^
    --------------------
    Authorized Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]