Document:

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EXHIBIT 10.31.7  Termination of Pledge and Security Agreement, dated May 22,
                 2003, between Eurotech, Ltd., Woodward, LLC and Krieger &
                 Prager LLP.

                        TERMINATION AGREEMENT AND RELEASE

         This TERMINATION AGREEMENT AND RELEASE (this "AGREEMENT") is made and
entered into as of the 22nd day of May, 2003, by and between Eurotech, Ltd., a
District of Columbia corporation having an address at 10306 Eaton Place, Suite
220, Fairfax, VA 22030 (collectively, with its parent companies, subsidiaries,
divisions, affiliates, stockholders, officers, directors, employees, agents and
representatives and their respective successors and assigns, the "COMPANY"),
Woodward LLC, a Cayman Islands company (collectively, with its parent companies,
subsidiaries, divisions, affiliates, equityholders, officers, directors,
managers, employees, agents and representatives and their respective successors
and assigns, the "SECURED PARTY") and Krieger & Prager, LLP, a New York limited
liability partnership, as agent for the Secured Party ("AGENT"). The Company,
the Secured Party and the Agent are collectively referred to herein as the
"PARTIES."

         WHEREAS, the Parties are parties to that certain Pledge and Security
Agreement, dated as of December 19, 2002 (the "PLEDGE AGREEMENT"), pursuant to
which the Company granted to the Secured Party a security interest (the
"SECURITY INTEREST") in 239,927,344 shares of common stock (the "PLEDGED
SHARES") of Markland Technologies, Inc., a Florida corporation, to secure, among
other things, the Obligor's obligations to the Secured Party under Section 3 of
the Pledge Agreement;

         WHEREAS, the Company and the Secured Party are also parties to two
separate Exchange Agreements, dated as March 27, 2003, in each cash by and
between the Company and the Secured Party (the "EXCHANGE AGREEMENTS");

         WHEREAS, as a condition precedent to consummation of the transactions
contemplated by, and the mutual benefits to be gained by the Parties pursuant
to, the Exchange Agreements, the Parties have agreed that it is in their mutual
best interests to terminate the Pledge Agreement and to abide by the terms of
this Agreement, as a final and complete resolution of all matters, whether now
known or unknown, arising out of the Pledge Agreement.

         NOW, THEREFORE, in consideration of the foregoing recitals, and the
premises and mutual agreements herein contained, and other good and valuable
consideration, the receipt and sufficiency of which are hereby mutually
acknowledged, the Parties, intending to be legally bound, hereby agree as
follows:

         1. TERMINATION OF PLEDGE AGREEMENT. The Parties hereby unconditionally
terminate the Pledge Agreement and agree that no Party thereto shall hereinafter
have any rights or obligations thereunder. As of the date hereof, the Secured
Party shall execute and deliver to the Company a proper instrument or
instruments (including Uniform Commercial Code termination statements on Form
UCC-3) acknowledging the satisfaction and termination of the Pledge Agreement
(the filing of which will be done at the Company's expense), and will duly
assign, transfer and deliver to the Company (without recourse and without
representation or warranty) such of the Collateral (as defined in the Pledge
Agreement) as may be in the possession of the Secured Party or the Agent and as
has not thereto been sold or otherwise applied or released pursuant to the
Pledge Agreement.

<PAGE>

         2. RELEASE. Each of the Company and the Secured Party, in exchange for
(i) the benefits to be received by each party under the Exchange Agreements and
(ii) other good and valuable consideration, including the termination of the
Security Interest, hereby discharges and releases the other party from any and
all claims, losses, costs, debts, dues, sums of money, accounts, judgments,
executions, demands, damages, liabilities, covenants, contracts, controversies,
promises, grievances, suits, actions, and causes of action, administrative,
court or otherwise, known or unknown, in law or in equity (any or all of the
foregoing, "CLAIMS"), which the Company and the Secured Party, respectively,
have, had, may have had, or may have against the Agent, the other party and such
other party's parent companies, subsidiaries, divisions, affiliates,
stockholders, officers, directors, employees, agents and representatives and
their respective successors and assigns, and which Claims, directly or
indirectly, arise out of or are in any way connected with (a) the Pledge
Agreement, (b) Pledged Shares or the Security Interest or (c) any agreements or
understandings between the parties relating to any acquisition by the Secured
Party of any shares of capital stock of the Company.

         3. BINDING EFFECT. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns.

         4. GOVERNING LAW; JURISDICTION.

                  (a) This Agreement shall be governed by the laws of the State
of New York without giving effect to conflict of laws principles thereof.

                  (b) The Parties agree (i) to submit to personal jurisdiction
of any Federal or state court of competent jurisdiction located in the State of
New York, County of New York in any action or proceeding arising out of this
Agreement and, in furtherance of such agreement, the Parties hereby agree and
consent that, without limiting other methods of obtaining jurisdiction, personal
jurisdiction over the Parties in any such action or proceeding may be obtained
by service of process within or outside of the jurisdiction of any such courts
and (ii) that service of all process in any such action or proceeding shall be
effective if personally delivered to the applicable Party hereto at its last
know address or as otherwise served upon either such Party in accordance with
New York law.

         5. COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by facsimile, all of which taken together shall constitute one
and the same instrument and any of the Parties hereto may execute this Agreement
by signing any such counterpart.

         6. SEVERABILITY. If all or any portion of any provision of this
Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect, then such invalidity, illegality or unenforceability shall not
affect any other provision hereof, but this Agreement shall be construed as if
such invalid, illegal or unenforceable provision or portion thereof were not
contained herein.

         7. REVIEW OF AGREEMENT. EACH OF THE PARTIES ACKNOWLEDGES THAT (A) IT
HAS THOROUGHLY READ AND REVIEWED THE TERMS AND PROVISIONS OF THIS AGREEMENT, (B)
IT IS FULLY FAMILIAR WITH THE TERMS OF THIS AGREEMENT, AND THE TERMS AND
PROVISIONS CONTAINED HEREIN ARE CLEARLY UNDERSTOOD BY IT, (C) IT HAS HAD FULL
BENEFIT AND ADVICE OF COUNSEL OF ITS OWN SELECTION IN REGARD TO UNDERSTANDING

<PAGE>

THE TERMS, MEANING AND EFFECT OF THIS AGREEMENT, (D) ITS EXECUTION OF THIS
AGREEMENT IS DONE FREELY, VOLUNTARILY, WITH FULL KNOWLEDGE, AND WITHOUT DURESS,
(E) IN EXECUTING THIS AGREEMENT, IT IS NOT RELYING ON ANY OTHER REPRESENTATIONS
EITHER WRITTEN OR ORAL, EXPRESS OR IMPLIED, MADE TO IT BY THE OTHER PARTY
HERETO, AND (F) THE CONSIDERATION RECEIVED BY IT HEREUNDER HAS BEEN ACTUAL AND
ADEQUATE.

         8. ENTIRE AGREEMENT. This Agreement embodies the entire agreement
between the parties hereto relating to the subject matter thereof and supersedes
all prior agreements, representations and understandings, if any, relating to
the subject matter thereof.

         IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be
executed on its behalf by its duly authorized representative, as applicable, all
as of the date first above written.

                                        EUROTECH, LTD.

                                        By:  /s/ Don V. Hahnfeldt
                                             -----------------------------------
                                             Name:  Don V. Hahnfeldt
                                             Title: President

                                        WOODWARD LLC

                                        By:  /s/ David K. Sims
                                             -----------------------------------
                                             Name:  David K. Sims, for Navigator
                                                    Management Ltd.
                                             Title: Director

                                        KRIEGER & PRAGER, LLP

                                        By:  /s/ Samuel Krieger
                                             -----------------------------------
                                             Name:  Samuel Krieger
                                             Title: PartnerQuickLinks
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Exhibit 10.5    
    

 
 

SUPPLEMENTAL AGREEMENT TO
  CREDIT FACILITIES AGREEMENT DATED 23 APRIL 2001    
    

        This Agreement is made to be effective from 1 March 2002 (the "Effective Date of
this Agreement") 

BETWEEN  

        INNOVEX (THAILAND) LIMITED (Registration No. Bor Aor Chor. Lor Por 253) with its head office located at
No. 79 Moo 4 Export Industrial Zone 2, Northern Industrial Estate, Baan Klang Sub-district, Muang Lampoon District, Lampoon Province (hereinafter referred to as the
"Borrower") 

        BANK OF AYUDHYA PUBLIC COMPANY LIMITED ("Bank of Ayudhya") as the Facility Agent (hereinafter referred to in this Agreement as the  "Facility Agent") 

        THE INDUSTRIAL FINANCE CORPORATION OF THAILAND ("IFCT") as the Security Agent (hereinafter referred to as the  "Security Agent"). 

AND  

        THE INDUSTRIAL FINANCE CORPORATION OF THAILAND and BANK OF AYUDHYA PUBLIC COMPANY
LIMITED as the Creditors (hereinafter referred to collectively as the "Creditors" and individually as  "Creditor").

WHEREAS  

	(A)
	The
Borrower entered into the Credit Facilities Agreement dated 23 April 2001 (hereinafter referred to as the "Credit Facilities
Agreement") with the Facility Agent, the Security Agent and the Creditors.

	(B)
	The
Borrower, the Facility Agent, the Security Agent and the Creditors intend to amend the Credit Facilities Agreement pursuant to the terms and conditions of this Agreement. 

1.     Definition and Interpretation  

        The parties agree as follows: 

	1.1
	Words
and expressions used in this Agreement shall have the same respective meanings as the words and expressions defined in the Credit Facilities Agreement except as otherwise
defined in this Agreement.

	1.2
	In
this Agreement, except as otherwise defined the reference to the Credit Facilities Agreement, the Transaction Documents or any documents related to the Credit Facilities Agreement
or the Transaction Documents shall include this Agreement.

	1.3
	From
the Effective Date of this Agreement, any terms or conditions in the Credit Facilities Agreement or the Transaction Documents or any documents related to the Credit Facilities
Agreement or the Transaction Documents which contradict to the terms amended by this Agreement, the terms under this Agreement shall prevail and the terms or conditions under the Credit Facilities
Agreement or the Transaction Documents or any documents related to the Credit Facilities Agreement or the Transaction Documents which contradict to the terms of this agreement shall no longer in
effect. 

 

2.     Amendment  

        The Borrower, the Facility Agent, the Security Agent and the Creditors agree to amend the terms of the Credit Facilities Agreement as follows: 

	2.1
	Clause 2.1.2
(Packing Credit Facility) of the Credit Facilities Agreement shall be repealed and replaced to read as follows: 

        2.1.2    Packing Credit Facility

	(a)
	the
Baht or foreign currency equivalent to Baht facility as Packing Credit Creditors agree but not exceeding the Packing Credit Facility Limit provided by Packing Credit Creditors to
the Borrower under the terms and conditions of this Agreement for the aggregate amount of not exceeding Baht 530,000,000 (Five Hundred Thirty Million Baht).

	(b)
	the
Baht or foreign currency equivalent to Baht facility as Packing Credit Creditors agree but not exceeding the Packing Credit Facility Limit provided by Packing Credit Creditors to
the Borrower under the terms and conditions of this Agreement for the aggregate amount of not exceeding Baht 300,000,000 (Three Hundred Million Baht) for the payment of expenses related to the
business transaction with Seagate Technology (Thailand) Limited.

	2.2
	Clause 4.2.3
and 4.2.4 of the Credit Facilities Agreement shall be repealed and replaced to read as follows: 

	

 	
 	

"4.2.3	
 	

The maximum amount for the Packing Credit Facility the Borrower is entitled to utilize from the Packing Credit Creditors under this Agreement is Baht 830,000,000 (Eight Hundred Thirty Million Baht).
	

 	
 	

  4.2.4	
 	

(a)	
 	

In the case that the utilization of the Packing Credit Facility is made pursuant to Clause 2.1.2 (a), the maturity of each Packing Credit Facility of the Borrower will not exceed one hundred and eighty (180) days from the Utilization
Date.
	

 	
 	

 	
 	

(b)	
 	

In the case that the utilization of the Packing Credit Facility is for the payment of expenses related to the business transaction with Seagate Technology (Thailand) Limited pursuant to Clause 2.1.2 (b), the maturity of each Packing Credit
Facility of the Borrower will not exceed one hundred and eighty (180) days from the Utilization Date or three (3) months from the shipment date whichever is earlier."

	2.3
	Clause 4.2.7
of the Credit Facilities Agreement shall be repealed and replaced to read as follows: 

	
 	
 	

"4.2.7	
 	

The Borrower agrees that the Borrower shall use its best efforts to utilize Packing Credit Facility from each Packing Credit Creditor at the proportionate ratio of 48 (IFCT) to 35 (Bank of Ayudhya) or the ratio specified by the Packing Credit
Creditors and shall prepare the reports for the drawdown of Packing Credit Facility and other Facilities to the Facility Agent on the first and sixteenth days of each month under the calendar year.
	

 	
 	

 	
 	

In case the amount of Packing Credit Facility utilized cannot be proportionately maintained in accordance with the ratio specified above, the Facility Agent shall attempt to divide the amount as close as possible to the proportionate ratio specified
above."

2

 
	2.4
	Clause 11.1.11
of the Credit Facilities Agreement shall be repealed and replaced to read as follows: 

	

 	
 	

"11.1.11	
 	

The Borrower shall arrange to increase the registered capital so that the registered capital and the paid-up capital of the Borrower shall be no less than Baht 735,000,000 (Seven Hundred Thirty Five Million Baht) within 30 June 2002 and shall
ensure that the capital increase shall not affect the privileges under the Investment Promotion Certificate issued by the Board of Investment of the Borrower. In addition, the Borrower must arrange to deposit the shares resulting from such capital
increase to the possession of the Escrow Agent in the form and substance satisfactory to the Creditors until the Debt of the Borrower under this Agreement and the Transaction Documents shall be paid in full."

	2.5
	Attachment
1 (Details of the Facilities and the Creditors) of the Credit Facilities Agreement shall be repealed and replaced to read as follows: 

	
Category of the Facilities
 
	
 	

Lenders
	
 	

Facility Limit
	
 	

Commitment

Percentage

	
Long Term Facility	
 	

IFCT

Bank of Ayudhya	
 	

300,000,000

290,000,000	
 	

30/59

29/59
	

Packing Credit Facility	
 	

IFCT

Bank of Ayudhya	
 	

480,000,000

350,000,000	
 	

48/83

35/83
	

Overdraft Facility	
 	

Bank of Ayudhya	
 	

10,000,000	
 	

1/8
	

Short Term Working

Capital Facility	
 	

IFCT	
 	

70,000,000	
 	

7/8

3.     Continuity of Agreement  

        Except as amended under this Agreement, all terms and conditions under the Credit Facilities Agreement, the Transaction Documents and any documents related to the
Credit Facilities Agreement and the Transaction Documents (including the provisions on security) shall remain in full force and effect among the Borrower, the Facility Agent, the Security Agent and
the Creditors and this Agreement shall be deemed as an integral part of the Credit Facilities Agreement and the Transaction Documents. The provisions on Representations and Warranties, Affirmative
Covenants and Negative Covenants including Event of Default in which must be performed or omit to perform as specified in the Credit Facilities Agreement, the Transaction Documents and any agreements
related to the Credit Facilities Agreement and the Transaction Documents shall be applied to this Agreement. 

4.     The Effective Date of this Agreement  

        This Agreement shall be effective as from the Effective Date of this Agreement 

3

 

        IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date specified above. 

THE BORROWER:

INNOVEX (THAILAND) LIMITED

	By	 	/s/ Thomas Paulson

	 	 	Its	 	Senior Vice President and CFO

THE SECURITY AGENT:

THE INDUSTRIAL FINANCE CORPORATION OF THAILAND

	 	 	/s/ Visit Vongruamlarp

THE FACILITY AGENT:

BANK OF AYUDHYA PUBLIC COMPANY LIMITED

	 	 	/s/ Somsak Dumongkolsnok

THE CREDITORS:

THE INDUSTRIAL FINANCE CORPORATION OF THAILAND

	 	 	/s/ Visit Vongruamlarp

BANK OF AYUDHYA PUBLIC COMPANY LIMITED

	 	 	/s/ Pannuda Varithorn

WITNESS:

	 	 	/s/ Wallapa Posayanondha

WITNESS:

	 	 	/s/ Nunthawan Rallanagamorn

4

QuickLinks

Exhibit 10.5

SUPPLEMENTAL AGREEMENT TO CREDIT FACILITIES AGREEMENT DATED 23 APRIL 2001

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