Document:

INTELLECTUAL PROPERTY SECURITY AGREEMENT

INTELLECTUAL PROPERTY SECURITY AGREEMENT

This Intellectual Property Security Agreement (the "Agreement") is made as of May 16, 2003, by and between SOUTHWALL TECHNOLOGIES, INC., a Delaware corporation ("Grantor"), and PACIFIC BUSINESS FUNDING, a division of Cupertino National Bank, a Federal chartered bank ("Secured Party").

RECITALS

	Secured Party has agreed to make certain advances of money and to extend certain financial accommodations to Grantor (the "Loans") in the amounts and manner set forth in that certain Domestic Factoring Agreement dated as of May 16, 2003, as amended from time to time (the "Credit Agreement;" all capitalized terms used herein without definition shall have the meanings ascribed to them in the Credit Agreement).
	Secured Party is willing to make the Loans to Grantor, but only upon the condition, among others, that Grantor shall grant to Secured Party a security interest in all of Grantor's right title, and interest in, to and under all of the Collateral whether presently existing or hereafter acquired.

NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

	Grant of Security Interest.  As collateral security for the prompt and complete payment and performance of all of Grantor's present or future indebtedness, obligations and liabilities to Secured Party, Grantor hereby grants a security interest and mortgage to Secured Party, as security, in and to Grantor's entire right, title and interest in, to and under all of its intellectual property, including without limitation the following (all of which shall collectively be called the "Collateral"):

	Any and all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held, including without limitation those set forth on Exhibit A attached hereto (collectively, the "Copyrights");
	Any and all trade secrets, and any and all intellectual property rights in computer software and computer software products now or hereafter existing, created, acquired or held;
	Any and all design rights which may be available to Grantor now or hereafter existing, created, acquired or held;
	All patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same, including without limitation the patents and patent applications set forth on Exhibit B attached hereto (collectively, the "Patents");
	Any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of Grantor connected with and symbolized by such trademarks, including without limitation those set forth on Exhibit C attached hereto (collectively, the "Trademarks");
	Any and all claims for damages by way of past, present and future infringement of any of the rights included above, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the intellectual property rights identified above;
	All licenses or other rights to use any of the Copyrights, Patents or Trademarks, and all license fees and royalties arising from such use to the extent permitted by such license or rights; 
	All amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents; and
	All proceeds and products of the foregoing, including without limitation all payments under insurance or any indemnity or warranty payable in respect of any of the foregoing.

	Covenants and Warranties.  Grantor represents, warrants, covenants and agrees as follows:

	Grantor is now the sole owner of the Collateral, except for licenses granted by Grantor to its customers in the ordinary course of business;
	Except as set forth in the Schedule, Grantor's rights as a licensee of intellectual property do not give rise to more than five percent (5%) of its gross revenue in any given month, including without limitation revenue derived from the sale, licensing, rendering or disposition of any product or service;
	Performance of this Agreement does not conflict with or result in a breach of any agreement to which Grantor is party or by which Grantor is bound;
	During the term of this Agreement, Grantor will not transfer or otherwise encumber any interest in the Collateral, except for licenses granted by Grantor in the ordinary course of business or as set forth in this Agreement;
	To its knowledge, each of the Patents is valid and enforceable, and no part of the Collateral has been judged invalid or unenforceable, in whole or in part, and no claim has been made that any part of the Collateral violates the rights of any third party;
	Grantor shall deliver to Secured Party within thirty (30) days of the last day of each fiscal quarter, a report signed by Grantor, in form reasonably acceptable to Secured Party, listing any applications or registrations that Grantor has made or filed in respect of any patents, copyrights or trademarks and the status of any outstanding applications or registrations.  Grantor shall promptly advise Secured Party of any material change in the composition of the Collateral, including but not limited to any subsequent ownership right of the Grantor in or to any Trademark, Patent or Copyright not specified in this Agreement;
	Grantor shall (i) protect, defend and maintain the validity and enforceability of the Trademarks, Patents and Copyrights (ii) use reasonable efforts to detect infringements of the Trademarks, Patents and Copyrights and promptly advise Secured Party in writing of material infringements detected and (iii) not allow any Trademarks, Patents or Copyrights to be abandoned, forfeited or dedicated to the public without the written consent of Secured Party, which shall not be unreasonably withheld;
	Grantor shall register or cause to be registered (to the extent not already registered) with the United States Patent and Trademark Office or the United States Copyright Office, as the case may be, those registerable intellectual property rights now owned or hereafter developed or acquired by Grantor to the extent that Grantor, in its reasonable business judgment, deems it appropriate to so protect such intellectual property rights
	Grantor shall promptly give Secured Party written notice of any applications or registrations of intellectual property rights filed with the United States Patent and Trademark Office, including the date of such filing and the registration or application numbers, if any.  Grantor  shall (i) give Secured Party not less than 30 days prior written notice of the filing of any applications or registrations with the United States Copyright Office, including the title of such intellectual property rights to be registered, as such title will appear on such applications or registrations, and the date such applications or registrations will be filed, and (ii) prior to the filing of any such applications or registrations, shall execute such documents as Secured Party may reasonably request for Secured Party to maintain its perfection in such intellectual property rights to be registered by Grantor, and upon the request of Secured Party, shall file such documents simultaneously with the filing of any such applications or registrations.  Upon filing any such applications or registrations with the United States Copyright Office, Grantor shall promptly provide Secured Party with (i)  a copy of such applications or registrations, without the exhibits, if any,  thereto, (ii) evidence of the filing of any documents requested by Secured Party to be filed for Secured Party to maintain the perfection and priority of its security interest in such intellectual property rights, and (iii) the date of such filing.
	This Agreement creates, and in the case of after acquired Collateral, this Agreement will create at the time Grantor first has rights in such after acquired Collateral, in favor of Secured Party a valid and perfected first priority security interest in the Collateral in the United States securing the payment and performance of the obligations evidenced by the Credit Agreement;
	All information heretofore, herein or hereafter supplied to Secured Party by or on behalf of Grantor with respect to the Collateral is accurate and complete in all material respects;
	Grantor shall not enter into any agreement that would materially impair or conflict with Grantor's obligations hereunder without Secured Party's prior written consent, which consent shall not be unreasonably withheld.  Grantor shall not permit the inclusion in any material contract to which it becomes a party of any provisions that could or might in any way prevent the creation of a security interest in Grantor's rights and interests in any property included within the definition of the Collateral acquired under such contracts; and
	Upon any executive officer of Grantor obtaining actual knowledge thereof, Grantor will promptly notify Secured Party in writing of any event that materially adversely affects the value of any Collateral, the ability of Grantor to dispose of any Collateral or the rights and remedies of Secured Party in relation thereto, including the levy of any legal process against any of the Collateral.

	Secured Party's Rights.  Secured Party shall have the right, but not the obligation, to take, at Grantor's sole expense, any actions that Grantor is required under this Agreement to take but which Grantor fails to take, after fifteen (15) days' written notice to Grantor.  Grantor shall reimburse and indemnify Secured Party for all reasonable costs and reasonable expenses incurred in the reasonable exercise of its rights under this section 3.

	Inspection Rights.  Grantor hereby grants to Secured Party and its employees, representatives and agents the right to visit, during reasonable hours upon prior reasonable written notice to Grantor, any of Grantor's plants and facilities that manufacture, install or store products (or that have done so during the prior six-month period) that are sold utilizing any of the Collateral, and to inspect the products and quality control records relating thereto upon reasonable written notice to Grantor and as often as may be reasonably requested.

	Further Assurances; Attorney in Fact.

	On a continuing basis, Grantor will make, execute, acknowledge and deliver, and file and record in the proper filing and recording places in the United States, all such instruments, including appropriate financing and continuation statements and collateral agreements and filings with the United States Patent and Trademark Office and the Register of Copyrights, and take all such action as may reasonably be deemed necessary or advisable, or as requested by Secured Party, to perfect Secured Party's security interest in all Copyrights, Patents and Trademarks and otherwise to carry out the intent and purposes of this Agreement, or for assuring and confirming to Secured Party the grant or perfection of a security interest in all Collateral.
	Grantor hereby irrevocably appoints Secured Party as Grantor's attorney-in-fact, with full authority in the place and stead of Grantor and in the name of Grantor, from time to time in Secured Party's discretion, to take any action and to execute any instrument which Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement, including (i) to modify, in its sole discretion, this Agreement without first obtaining Grantor's approval of or signature to such modification by amending Exhibit A, Exhibit B and Exhibit C, hereof, as appropriate, to include reference to any right, title or interest in any Copyrights, Patents or Trademarks acquired by Grantor after the execution hereof or to delete any reference to any right, title or interest in any Copyrights, Patents or Trademarks in which Grantor no longer has or claims any right, title or interest, (ii) to file, in its sole discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral without the signature of Grantor where permitted by law and (iii) after the occurrence of an Event of Default, to transfer the Collateral into the name of Secured Party or a third party to the extent permitted under the California Uniform Commercial Code.

	Events of Default.  The occurrence of any of the following shall constitute an Event of Default under the Agreement:

	An Event of Default occurs under the Credit Agreement; or
	Grantor breaches any warranty or agreement made by Grantor in this Agreement and, as to any breach that is capable of cure, Grantor fails to cure such breach within five (5) days of the occurrence of such breach.

	Remedies.  Upon the occurrence and continuance of an Event of Default, Secured Party shall have the right to exercise all the remedies of a secured party under the California Uniform Commercial Code, including without limitation the right to require Grantor to assemble the Collateral and any tangible property in which Secured Party has a security interest and to make it available to Secured Party at a place designated by Secured Party.  Secured Party shall have a nonexclusive, royalty free license to use the Copyrights, Patents and Trademarks to the extent reasonably necessary to permit Secured Party to exercise its rights and remedies upon the occurrence of an Event of Default.  Grantor will pay any expenses (including reasonable attorneys' fees) incurred by Secured Party in connection with the exercise of any of Secured Party's rights hereunder, including without limitation any expense incurred in disposing of the Collateral.  All of Secured Party's rights and remedies with respect to the Collateral shall be cumulative.

	Indemnity.  Grantor agrees to defend, indemnify and hold harmless Secured Party and its officers, employees, and agents against:  (a) all obligations, demands, claims, and liabilities claimed or asserted by any other party in connection with the transactions contemplated by this Agreement, and (b) all losses or expenses in any way suffered, incurred, or paid by Secured Party as a result of or in any way arising out of, following or consequential to transactions between Secured Party and Grantor, whether under this Agreement or otherwise (including without limitation reasonable attorneys' fees and reasonable expenses), except for losses arising from or out of Secured Party's gross negligence or willful misconduct.

	Course of Dealing.  No course of dealing, nor any failure to exercise, nor any delay in exercising any right, power or privilege hereunder shall operate as a waiver thereof.

	Attorneys' Fees.  If any action relating to this Agreement is brought by either party hereto against the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees, costs and disbursements.

	Amendments.  This Agreement may be amended only by a written instrument signed by both parties hereto.

	Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute the same instrument.

	California Law and Jurisdiction; Jury Waiver.  This Agreement shall be governed by the laws of the State of California, without regard for choice of law provisions.  Grantor and Secured Party consent to the exclusive jurisdiction of any state or federal court located in Santa Clara County, California.  GRANTOR AND SECURED PARTY EACH WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THE CREDIT AGREEMENT, THIS AGREEMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.

	 	
GRANTOR:

	
Address of Grantor:
	
SOUTHWALL TECHNOLOGIES INC.

	
3975 East Bayshore Road

Palo Alto, CA 94303
	
By: /s/ Michael E. Seifert

	 	
Its: SVP & CFO

	
Attn: 
	 
	 	 

 

	 	
SECURED PARTY

	
Address of Secured Party:
	
PACIFIC BUSINESS FUNDING

	
20195 Stevens Creek Blvd., Suite #220 

Cupertino, CA  95014
	
By: /s/ Melvin L. Robbins

	 	
Its: Sr. Vice President

	
Attn: 
	 

 

 

EXHIBIT A

Copyrights

	
 Description
	
Registration Number
	
Registration Date

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

EXHIBIT B

Patents

	
Description
	
Registration/Serial Number
	
Registration/Application

Date

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

EXHIBIT C

Trademarks

	
Description
	
Registration/Application

Number
	
Registration/Application

DateEXPORT-IMPORT BANK OF THE UNITED STATES

Export-Import Bank of the United States

Working Capital Guarantee Program

Borrower Agreement

THIS BORROWER AGREEMENT (this "Agreement") is made and entered into
by the entity identified as Borrower on the signature page hereof
("Borrower") in favor of the Export-Import Bank of the United States
("Ex-Im Bank") and the institution identified as Lender on the
signature page hereof ("Lender").

RECITALS

Borrower has requested that Lender establish an Export-Import Bank factoring
facility (the "Loan Facility") in favor of Borrower for the purposes
of providing Borrower with pre-export working capital to finance the
manufacture, production or purchase and subsequent export sale of Items.

It is a condition to the establishment of such Loan Facility that Ex-Im Bank
guarantee the payment of ninety percent (90%) of certain credit accommodations
subject to the terms and conditions of a Master Guarantee Agreement, the Loan
Authorization Agreement, and to the extent applicable, the Delegated Authority
Letter Agreement.

Borrower is executing this Agreement for the benefit of Lender and Ex-Im Bank
in consideration for and as a condition to Lender's establishing the Loan
Facility and Ex-Im Bank's agreement to guarantee such Loan Facility pursuant to
the Master Guarantee Agreement.

NOW, THEREFORE, Borrower hereby agrees as follows:

	DEFINITIONS.

	Definition of Terms.  As used in this Agreement, including the
Recitals to this Agreement and the Loan Authorization Agreement, the following
terms shall have the following meanings: 

"Accounts Receivable" shall mean all of Borrower's now owned or
hereafter acquired (a) "accounts" (as such term is defined in the
UCC), other receivables, book debts and other forms of obligations, whether
arising out of goods sold or services rendered or from any other transaction;
(b) rights in, to and under all purchase orders or receipts for goods or
services; (c) rights to any goods represented or purported to be
represented by any of the foregoing (including unpaid sellers' rights of
rescission, replevin, reclamation and stoppage in transit and rights to
returned, reclaimed or repossessed goods); (d) moneys due or to become due
to such Borrower under all purchase orders and contracts for the sale of goods
or the performance of services or both by Borrower (whether or not yet earned by
performance on the part of Borrower), including the proceeds of the foregoing;
(e) any notes, drafts, letters of credit, insurance proceeds or other
instruments, documents and writings evidencing or supporting the foregoing; and
(f) all collateral security and guarantees of any kind given by any other
Person with respect to any of the foregoing.

"Advance Rate" shall mean the rate specified in Section
5(c) of the Loan Authorization Agreement for each category of
Collateral.

"Business Day" shall mean any day on which the Federal Reserve Bank
of New York is open for business.

"Buyer" shall mean a Person that has entered into one or more
Export Orders with Borrower.

"Collateral" shall mean all property and interest in property in or
upon which Lender has been granted a Lien as security for the payment of all the
Loan Facility Obligations including the Collateral identified in Section 6 of
the Loan Authorization Agreement and all products and proceeds (cash and non-
cash) thereof.

"Country Limitation Schedule" shall mean the schedule published
from time to time by Ex-Im Bank and provided to Borrower by Lender which sets
forth on a country by country basis whether and under what conditions Ex-Im Bank
will provide coverage for the financing of export transactions to countries
listed therein.

"Credit Accommodation Amount" shall mean the aggregate outstanding
amount of Disbursements.

"Credit Accommodations" shall mean Disbursements.

"Debarment Regulations" shall mean, collectively, (a) the
Governmentwide Debarment and Suspension (Nonprocurement) regulations (Common
Rule), 53 Fed. Reg. 19204 (May 26, 1988), (b) Subpart 9.4 (Debarment,
Suspension, and Ineligibility) of the Federal Acquisition Regulations, 48 C.F.R.
9.400-9.409 and (c) the revised Governmentwide Debarment and Suspension
(Nonprocurement) regulations (Common Rule), 60 Fed. Reg. 33037 (June 26,
1995).

"Delegated Authority Letter Agreement" shall mean the Delegated
Authority Letter Agreement, if any, between Ex-Im Bank and Lender.

"Disbursement" shall mean an advance of a working capital loan from
Lender to Borrower under the Loan Facility. 

"Dollars" or "$" shall mean the lawful currency of the
United States.

"Effective Date" shall mean the date on which (a) the Loan
Documents are executed by Lender and Borrower or the date, if later, on which
agreements are executed by Lender and Borrower adding the Loan Facility to an
existing working capital loan arrangement between Lender and Borrower and
(b) all of the conditions to the making of the initial Credit
Accommodations under the Loan Documents or any amendments thereto have been
satisfied.

"Eligible Export-Related Accounts Receivable" shall mean an Export-
Related Account Receivable which is acceptable to Lender and which is deemed to
be eligible pursuant to the Loan Documents, but in no event shall Eligible
Export-Related Accounts Receivable include any Account Receivable:

	that does not arise from the sale of Items in the ordinary course of
Borrower's business;
	that is not subject to a valid, perfected first priority Lien in favor of
Lender;
	as to which any covenant, representation or warranty contained in the Loan
Documents with respect to such Account Receivable has been breached;
	that is not owned by Borrower or is subject to any right, claim or interest
of another Person other than the Lien in favor of Lender or liens otherwise
permitted by Lender;
	with respect to which an invoice has not been sent;
	that arises from the sale of defense articles or defense services;
	that is due and payable from a Buyer located in a country with which Ex-Im
Bank is prohibited from doing business as designated in the Country Limitation
Schedule;
	that does not comply with the requirements of the Country Limitation
Schedule;
	that is due and payable more than one hundred eighty (180) days from the
date of the invoice;
	that is not paid within sixty (60) calendar days from its original due date,
unless it is insured through Ex-Im Bank export credit insurance for
comprehensive commercial and political risk, or through Ex-Im Bank approved
private insurers for comparable coverage, in which case it is not paid within
ninety (90) calendar days from its due date;
	that arises from a sale of goods to or performance of services for an
employee of Borrower, a subsidiary of Borrower, a Person with a controlling
interest in Borrower or a Person which shares common controlling ownership with
Borrower;
	that is backed by a letter of credit unless the Items covered by the subject
letter of credit have been shipped;
	that Lender or Ex-Im Bank, in its reasonable judgment, deems uncollectible
for any reason;
	that is due and payable in a currency other than Dollars, except as may be
approved in writing by Ex-Im Bank;
	that is due and payable from a military Buyer, except as may be approved in
writing by Ex-Im Bank;
	that does not comply with the terms of sale set forth in Section 7 of the
Loan Authorization Agreement; 
	that is due and payable from a Buyer who (i) applies for, suffers, or
consents to the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of all or a substantial part of
its property or calls a meeting of its creditors, (ii) admits in writing its
inability, or is generally unable, to pay its debts as they become due or ceases
operations of its present business, (iii) makes a general assignment for the
benefit of creditors, (iv) commences a voluntary case under any state or federal
bankruptcy laws (as now or hereafter in effect), (v) is adjudicated as bankrupt
or insolvent, (vi) files a petition seeking to take advantage of any other law
providing for the relief of debtors, (vii) acquiesces to, or fails to have
dismissed within sixty (60) days, any petition which is filed against it in any
involuntary case under such bankruptcy laws, or (viii) takes any action for the
purpose of effecting any of the foregoing; 
	that arises from a bill-and-hold, guaranteed sale, sale-and-return, sale on
approval, consignment or any other repurchase or return basis or is evidenced by
chattel paper;
	for which the Items giving rise to such Account Receivable have not been
shipped and delivered to and accepted by the Buyer or the services giving rise
to such Account Receivable have not been performed by Borrower and accepted by
the Buyer or the Account Receivable otherwise does not represent a final
sale;
	that is subject to any offset, deduction, defense, dispute, or counterclaim
or the Buyer is also a creditor or supplier of Borrower or the Account
Receivable is contingent in any respect or for any reason;
	for which Borrower has made any agreement with the Buyer for any deduction
therefrom, except for discounts or allowances made in the ordinary course of
business for prompt payment, all of which discounts or allowances are reflected
in the calculation of the face value of each respective invoice related thereto;
or
	for which any of the Items giving rise to such Account Receivable have been
returned, rejected or repossessed.

 "ERISA" shall mean the Employee Retirement Income Security Act of
1974 and the rules and regulations promulgated thereunder.

"Export-Import Bank Factoring Agreement" shall mean a valid and
enforceable agreement between Lender and Borrower setting forth the terms and
conditions of the Loan Facility.

"Export Order" shall mean a written export order or contract for
the purchase by the Buyer from Borrower of any of the Items.

"Export-Related Accounts Receivable" shall mean those Accounts
Receivable arising from the sale of Items which are due and payable to Borrower
in the United States.

"Export-Related Accounts Receivable Value" shall mean, at the date
of determination thereof, the aggregate face amount of Eligible Export-Related
Accounts Receivable less taxes, discounts, credits, allowances and Retainages,
except to the extent otherwise permitted by Ex-Im Bank in writing.

"Export-Related Borrowing Base" shall mean, at the date of
determination thereof, the sum of (a)  the Export-Related Accounts
Receivable Value multiplied by the Advance Rate applicable to Export-Related
Accounts Receivable set forth in Section 5(C)(2) of the Loan Authorization
Agreement, and (b) if permitted by Ex-Im Bank in writing, the Retainage
Value multiplied by the Retainage Advance Rate set forth in Section 5(C)(3) of
the Loan Authorization Agreement.

"Export-Related Borrowing Base Certificate" shall mean a
certificate in the form provided or approved by Lender, executed by Borrower and
delivered to Lender pursuant to the Loan Documents detailing the Export-Related
Borrowing Base supporting the Credit Accommodations which reflects, to the
extent included in the Export-Related Borrowing Base, Export-Related Accounts
Receivable, Eligible Export-Related Accounts Receivable balances that have been
reconciled with Borrower's general ledger and  Accounts Receivable aging
report.

"Final Disbursement Date" shall mean, unless subject to an
extension of such date agreed to by Ex-Im Bank, the last date on which Lender
may make a Disbursement set forth in Section 10 of the Loan Authorization
Agreement or, if such date is not a Business Day, the next succeeding Business
Day.

"GAAP" shall mean the generally accepted accounting principles
issued by the American Institute of Certified Public Accountants as in effect
from time to time.

"General Intangibles" shall mean all intellectual property and
other "general intangibles" (as such term is defined in the UCC)
necessary or desirable to or for the disposition of Inventory.

"Guarantor" shall mean each Person, if any, identified in Section 3
of the Loan Authorization Agreement who shall guarantee (jointly and severally
if more than one) the payment and performance of all or a portion of the Loan
Facility Obligations.

"Guaranty Agreement" shall mean a valid and enforceable agreement
of guaranty executed by each Guarantor in favor of Lender.

"Inventory" shall mean all "inventory" (as such term is
defined in the UCC), now or hereafter owned or acquired by Borrower, wherever
located, including all inventory, merchandise, goods and other personal property
which are held by or on behalf of Borrower for sale or lease or are furnished or
are to be furnished under a contract of service or which constitute raw
materials, work in process or materials used or consumed or to be used or
consumed in Borrower's business or in the processing, production, packaging,
promotion, delivery or shipping of the same, including other supplies.

"ISP" shall mean the International Standby Practices-ISP98,
International Chamber of Commerce Publication No. 590 and any amendments and
revisions thereof.

"Items" shall mean the finished goods or services which are
intended for export from the United States, as specified in Section 4(a) of
the Loan Authorization Agreement.

"Lien" shall mean any mortgage, security deed or deed of trust,
pledge, hypothecation, assignment, deposit arrangement, lien, charge, claim,
security interest, security title, easement or encumbrance, or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including any lease or title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing, and the filing of, or agreement to give, any financing statement
perfecting a security interest under the UCC or comparable law of any
jurisdiction) by which property is encumbered or otherwise charged.

"Loan Authorization Agreement" shall mean the Loan Authorization
Agreement entered into between Lender and Ex-Im Bank or the Loan Authorization
Notice setting forth certain terms and conditions of the Loan Facility, a copy
of which is attached hereto as Annex A.

"Loan Authorization Notice" shall mean the Loan Authorization
Notice executed by Lender and delivered to Ex-Im Bank in accordance with the
Delegated Authority Letter Agreement setting forth the terms and conditions of
each Loan Facility.

"Loan Documents" shall mean the Loan Authorization Agreement, the
Export-Import Bank Factoring Agreement, this Agreement, each promissory note (if
applicable), each Guaranty Agreement, and all other instruments, agreements and
documents now or hereafter executed by Borrower or any Guarantor evidencing,
securing, guaranteeing or otherwise relating to the Loan Facility or any Credit
Accommodations made thereunder.

"Loan Facility" shall mean the Revolving Loan Facility, the
Transaction Specific Loan Facility or the Transaction Specific Revolving Loan
Facility established by Lender in favor of Borrower under the Loan
Documents.

"Loan Facility Obligations" shall mean all loans, advances, debts,
expenses, fees, liabilities, and obligations for the performance of covenants,
tasks or duties or for payment of monetary amounts (whether or not such
performance is then required or contingent, or amounts are liquidated or
determinable) owing by Borrower to Lender, of any kind or nature, present or
future, arising in connection with the Loan Facility.

"Loan Facility Term" shall mean the number of months from the
Effective Date to the Final Disbursement Date as originally set forth in the
Loan Authorization Agreement.

"Master Guarantee Agreement" shall mean the Master Guarantee
Agreement between Ex-Im Bank and Lender, as amended, modified, supplemented and
restated from time to time.

"Material Adverse Effect" shall mean a material adverse effect on
(a) the business, assets, operations, prospects or financial or other
condition of Borrower or any Guarantor, (b) Borrower's ability to pay or
perform the Loan Facility Obligations in accordance with the terms thereof,
(c) the Collateral or Lender's Liens on the Collateral or the priority of
such Lien or (d) Lender's rights and remedies under the Loan Documents.

"Maximum Amount" shall mean the maximum principal balance of Credit
Accommodations that may be outstanding at any time under the Loan Facility
specified in Section 5(a) of the Loan Authorization Agreement.

"Other Assets" shall mean the Collateral, if any, described in
Section 5(C)(4) of the Loan Authorization Agreement.

"Other Assets Value" shall mean, at the date of determination
thereof, the value of the Other Assets as determined in accordance with
GAAP.

"Permitted Liens" shall mean (a) Liens for taxes, assessments
or other governmental charges or levies not delinquent, or, being contested in
good faith and by appropriate proceedings and with respect to which proper
reserves have been taken by Borrower; provided, that, the Lien shall have no
effect on the priority of the Liens in favor of Lender or the value of the
assets in which Lender has such a Lien and a stay of enforcement of any such
Lien shall be in effect; (b) deposits or pledges securing obligations under
worker's compensation, unemployment insurance, social security or public
liability laws or similar legislation; (c) deposits or pledges securing
bids, tenders, contracts (other than contracts for the payment of money),
leases, statutory obligations, surety and appeal bonds and other obligations of
like nature arising in the ordinary course of Borrower's business;
(d) judgment Liens that have been stayed or bonded; (e) mechanics',
workers', materialmen's or other like Liens arising in the ordinary course of
Borrower's business with respect to obligations which are not due;
(f) Liens placed upon fixed assets hereafter acquired to secure a portion
of the purchase price thereof, provided, that, any such Lien shall not encumber
any other property of Borrower; (g) security interests being terminated
concurrently with the execution of the Loan Documents; (h) Liens in favor
of Lender securing the Loan Facility Obligations; and (i) Liens disclosed
in Section 6(d) of the Loan Authorization Agreement and the Schedule of
Liens as defined in the Export-Import Bank Factoring Agreement.

"Person" shall mean any individual, sole proprietorship,
partnership, limited liability partnership, joint venture, trust, unincorporated
organization, association, corporation, limited liability company, institution,
public benefit corporation, entity or government (whether national, federal,
provincial, state, county, city, municipal or otherwise, including any
instrumentality, division, agency, body or department thereof), and shall
include such Person's successors and assigns.

"Principals" shall mean any officer, director, owner, partner, key
employee, or other Person with primary management or supervisory
responsibilities with respect to Borrower or any other Person (whether or not an
employee) who has critical influence on or substantive control over the
transactions covered by this Agreement.

"Retainage" shall mean that portion of the purchase price of an
Export Order that a Buyer is not obligated to pay until the end of a specified
period of time following the satisfactory performance under such Export
Order.

"Retainage Accounts Receivable" shall mean those portions of
Eligible Export-Related Accounts Receivable arising out of a Retainage.

"Retainage Advance Rate" shall mean the percentage rate specified
in Section 5(C)(3) of the Loan Authorization Agreement as the Advance Rate for
the Retainage Accounts Receivable of Borrower.

"Retainage Value" shall mean, at the date of determination thereof,
the aggregate face amount of Retainage Accounts Receivable, less taxes,
discounts, credits and allowances, except to the extent otherwise permitted by
Ex-Im Bank in writing.

"Revolving Loan Facility" shall mean the credit facility or portion
thereof established by Lender in favor of  Borrower for the purpose of providing
pre-export working capital in the form of loans and/or Letters of Credit to
finance the manufacture, production or purchase and subsequent export sale of
Items pursuant to Loan Documents under which Credit Accommodations may be made
and repaid on a continuous basis based solely on the Export-Related Borrowing
Base during the term of such credit facility.

"Special Conditions" shall mean those conditions, if any, set forth
in Section 13 of the Loan Authorization Agreement.

"Specific Export Orders" shall mean those Export Orders specified
in Section 5(d) of the Loan Authorization Agreement.

"Transaction Specific Loan Facility" shall mean a credit facility
or a portion thereof established by Lender in favor of Borrower for the purpose
of providing pre-export working capital in the form of loans and/or Letters of
Credit to finance the manufacture, production or purchase and subsequent export
sale of Items pursuant to Loan Documents under which Credit Accommodations are
made based solely on the Export-Related Borrowing Base relating to Specific
Export Orders and once such Credit Accommodations are repaid they may not be
reborrowed.

"Transaction Specific Revolving Loan Facility" shall mean a
Revolving Credit Facility established to provide financing of Specific Export
Orders.

"UCC" shall mean the Uniform Commercial Code as the same may be in
effect from time to time in the jurisdiction in which Borrower or Collateral is
located.

"UCP" shall mean the Uniform Customs and Practice for Documentary
Credits (1993 Revision), International Chamber of Commerce Publication No. 500
and any amendments and revisions thereof.

"U.S." or "United States" shall mean the United States of
America and its territorial possessions.

"U.S. Content" shall mean with respect to any Item all the labor,
materials and services which are of U.S. origin or manufacture, and which are
incorporated into an Item in the United States.

"Warranty" shall mean Borrower's guarantee to Buyer that the Items
will function as intended during the warranty period set forth in the applicable
Export Order.

	Rules of Construction.  For purposes of this Agreement, the following
additional rules of construction shall apply, unless specifically indicated to
the contrary: (a) wherever from the context it appears appropriate, each
term stated in either the singular or plural shall include the singular and the
plural, and pronouns stated in the masculine, feminine or neuter gender shall
include the masculine, the feminine and the neuter; (b) the term
"or" is not exclusive; (c) the term "including" (or any
form thereof) shall not be limiting or exclusive; (d) all references to
statutes and related regulations shall include any amendments of same and any
successor statutes and regulations; (e) the words "this
Agreement", "herein", "hereof", "hereunder"
or other words of similar import refer to this Agreement as a whole including
the schedules, exhibits, and annexes hereto as the same may be amended, modified
or supplemented; (f) all references in this Agreement to sections,
schedules, exhibits, and annexes shall refer to the corresponding sections,
schedules, exhibits, and annexes of or to this Agreement; and (g) all
references to any instruments or agreements, including references to any of the
Loan Documents, or the Delegated Authority Letter Agreement shall include any
and all modifications, amendments and supplements thereto and any and all
extensions or renewals thereof to the extent permitted under this Agreement.

	Incorporation of Recitals.  The Recitals to this Agreement are
incorporated into and shall constitute a part of this Agreement. 

	OBLIGATIONS OF BORROWER.  Until payment in full of all Loan Facility
Obligations and termination of the Loan Documents, Borrower agrees as
follows:

	Use of Credit Accommodations.

	Borrower shall use Credit Accommodations only for the purpose of enabling
Borrower to finance the cost of manufacturing, producing, purchasing or selling
the Items.  Borrower may not use any of the Credit Accommodations for the
purpose of:   (i) servicing or repaying any of Borrower's pre-existing or
future indebtedness unrelated to the Loan Facility (unless approved by Ex-Im
Bank in writing); (ii) acquiring fixed assets or capital goods for use in
Borrower's business; (iii) acquiring, equipping or renting commercial space
outside of the United States; (iv) paying the salaries of non U.S. citizens or
non-U.S. permanent residents who are located in offices outside of the United
States; or (v) in connection with a Retainage or Warranty (unless approved by
Ex-Im Bank in writing).   
	In addition, no Credit Accommodation may be used to finance the manufacture,
purchase or sale of any of the following:

	Items to be sold or resold to a Buyer located in a country as to which Ex-Im
Bank is prohibited from doing business as designated in the Country Limitation
Schedule; 
	that part of the cost of the Items which is not U.S. Content unless such
part is not greater than fifty percent (50%) of the cost of the Items and is
incorporated into the Items in the United States;
	defense articles or defense services; or
	without Ex-Im Bank's prior written consent, any Items to be used in the
construction, alteration, operation or maintenance of nuclear power, enrichment,
reprocessing, research or heavy water production facilities.

	Loan Documents and Loan Authorization Agreement.

	Each Loan Document and this Agreement has been duly executed and delivered
on behalf of Borrower, and each such Loan Document and this Agreement is a legal
and valid obligation of Borrower, enforceable against it in accordance with its
terms.  
	Borrower shall comply with all of the terms and conditions of the Loan
Documents, this Agreement and the Loan Authorization Agreement.

	Export-Related Borrowing Base Certificates and Export Orders.  In
order to receive Credit Accommodations under the Loan Facility, Borrower shall
have delivered to Lender an Export-Related Borrowing Base Certificate as
frequently as required by Lender but at least within the past thirty (30)
calendar days and a copy of the Export Order(s) (or, for Revolving Loan
Facilities, if permitted by Lender, a written summary of the Export Orders)
against which Borrower is requesting Credit Accommodations.  If Lender permits
summaries of Export Orders, Borrower shall also deliver promptly to Lender
copies of any Export Orders requested by Lender.  In addition, so long as there
are any Credit Accommodations outstanding under the Loan Facility, Borrower
shall deliver to Lender at least once each month no later than the twentieth
(20th) day of such month or more frequently as required by the Loan
Documents, an Export-Related Borrowing Base Certificate. 

	Exclusions from the Export-Related Borrowing Base.  In determining
the Export-Related Borrowing Base, Borrower shall exclude therefrom Accounts
Receivable which are not Eligible Export-Related Accounts Receivable.  Borrower
shall promptly, but in any event within five (5) Business Days, notify Lender of
any event or circumstance which to Borrower's knowledge would cause Lender to
reasonably consider any then existing Export-Related Accounts Receivable as no
longer constituting an Eligible Export-Related Accounts Receivable. 

	Financial Statements.  Borrower shall deliver to Lender the financial
statements required to be delivered by Borrower in accordance with Section 11 of
the Loan Authorization Agreement. 

	Schedules, Reports and Other Statements.  Borrower shall submit to
Lender in writing each month an Accounts Receivable aging report for the
preceding month detailing the terms of the amounts due from each Buyer.
Borrower shall also furnish to Lender promptly upon request such information,
reports, contracts, invoices and other data concerning the Collateral as Lender
may from time to time specify. 

	Additional Security or Payment.  Borrower shall at all times ensure
that the Export-Related Borrowing Base equals or exceeds the Credit
Accommodation Amount.  If informed by Lender or if Borrower otherwise has actual
knowledge that the Export-Related Borrowing Base is at any time less than the
Credit Accommodation Amount, Borrower shall, within five (5) Business Days,
either (i) furnish additional Collateral to Lender, in form and amount
satisfactory to Lender and Ex-Im Bank or (ii) pay to Lender an amount equal to
the difference between the Credit Accommodation Amount and the Export-Related
Borrowing Base. 

	Continued Security Interest.  Borrower shall not change (a) its
name or identity in any manner, (b) the location of its principal place of
business, (c) the location of any of the Collateral (other than transfers
to customers in the ordinary course of business) or (d) the location of any
of the books or records related to the Collateral, in each instance without
giving thirty (30) days prior written notice thereof to Lender and taking all
actions deemed necessary or appropriate by Lender to continuously protect and
perfect Lender's Liens upon the Collateral. 

	Inspection of Collateral.  Borrower shall permit the representatives
of Lender and Ex-Im Bank to make at any time upon reasonable notice and during
normal business hours inspections of the Collateral and of Borrower's
facilities, activities, and books and records, and shall cause its officers and
employees to give full cooperation and assistance in connection therewith. 

	General Intangibles.  Borrower represents and warrants that it owns,
or is licensed to use, all General Intangibles necessary to conduct its business
as currently conducted except where the failure of Borrower to own or license
such General Intangibles could not reasonably be expected to have a Material
Adverse Effect. 

	Notice of Certain Events.  Borrower shall promptly, but in any event
within five (5) Business Days, notify Lender in writing of the occurrence of any
of the following: 

	Borrower or any Guarantor (i) applies for, consents to or suffers the
appointment of, or the taking of possession by, a receiver, custodian, trustee,
liquidator or similar fiduciary of itself or of all or a substantial part of its
property or calls a meeting of its creditors, (ii) admits in writing its
inability, or is generally unable, to pay its debts as they become due or ceases
operations of its present business, (iii) makes a general assignment for the
benefit of creditors, (iv) commences a voluntary case under any state or federal
bankruptcy laws (as now or hereafter in effect), (v) is adjudicated as bankrupt
or insolvent, (vi) files a petition seeking to take advantage of any other law
providing for the relief of debtors, (vii) acquiesces to, or fails to have
dismissed within sixty (60) days, any petition filed against it in any
involuntary case under such bankruptcy laws, or (vii) takes any action for the
purpose of effecting any of the foregoing;
	any Lien in any of the Collateral, granted or intended by the Loan Documents
to be granted to Lender, ceases to be a valid, enforceable, perfected, first
priority Lien (or a lesser priority if expressly permitted pursuant to Section 6
of the Loan Authorization Agreement) subject only to Permitted Liens;
	the issuance of any levy, assessment, attachment, seizure or Lien, other
than a Permitted Lien, against any of the Collateral which is not stayed or
lifted within thirty (30) calendar days;
	any proceeding is commenced by or against Borrower or any Guarantor for the
liquidation of its assets or dissolution;
	any litigation is filed against Borrower or any Guarantor which has had or
could reasonably be expected to have a Material Adverse Effect and such
litigation is not withdrawn or dismissed within sixy (60) calendar days of the
filing thereof;
	any default or event of default under the Loan Documents;
	any failure to comply with any material terms of the Loan Authorization
Agreement;
	any material provision of any Loan Document or this Agreement for any reason
ceases to be valid, binding and enforceable in accordance with its terms;
	any event which has had or could reasonably be expected to have a Material
Adverse Effect; or 
	the Credit Accommodation Amount exceeds the applicable Export-Related
Borrowing Base.

	Insurance.  Borrower will at all times carry property, liability and
other insurance, with insurers acceptable to Lender, in such form and amounts,
and with such deductibles and other provisions, as Lender shall require, and
Borrower will provide evidence of such insurance to Lender, so that Lender is
satisfied that such insurance is, at all times, in full force and effect
provided that Lender agrees that the insurance evidenced by the certificate
attached to the Export-Import Bank Factoring Agreement is acceptable.  Each
property insurance policy shall name Lender as loss payee and shall contain a
lender's loss payable endorsement in form acceptable to Lender and each
liability insurance policy shall name Lender as an additional insured.  All
policies of insurance shall provide that they may not be cancelled or changed
without at least ten (10) days' prior written notice to Lender (or such shorter
notice as shall be required by the insurer) and shall otherwise be in form and
substance satisfactory to Lender.  Borrower will promptly deliver to Lender
copies of all reports made to insurance companies. 

	Taxes.  Borrower has timely filed all tax returns and reports
required by applicable law, has timely paid all applicable taxes, assessments,
deposits and contributions owing by Borrower and will timely pay all such items
in the future as they became due and payable.  Borrower may, however, defer
payment of any contested taxes; provided, that Borrower (a) in good faith
contests Borrower's obligation to pay such taxes by appropriate proceedings
promptly and diligently instituted and conducted; (b) notifies Lender in
writing of the commencement of, and any material development in, the
proceedings; (c) posts bonds or takes any other steps required to keep the
contested taxes from becoming a Lien upon any of the Collateral; and
(d) maintains adequate reserves therefor in conformity with GAAP.

	Compliance with Laws.  Borrower represents and warrants that it has
complied in all material respects with all provisions of all applicable laws and
regulations, including those relating to Borrower's ownership of real or
personal property, the conduct and licensing of Borrower's business, the payment
and withholding of taxes, ERISA and other employee matters, safety and
environmental matters except where non-compliance would not have a Material
Adverse Effect on Borrower. 

	Negative Covenants.  Without the prior written consent of Ex-Im Bank
and Lender, Borrower shall not (a) merge, consolidate or otherwise combine
with any other Person; (b) acquire all or substantially all of the assets
or capital stock of any other Person; (c) sell, lease, transfer, convey,
assign or otherwise dispose of any of the Collateral, except for the sale of
Inventory in the ordinary course of business and the disposition of obsolete
equipment in the ordinary course of business; (d) create any Lien on the
Collateral except for Permitted Liens (including purchase money liens on
equipment financed by third parties and the refinancing of such equipment);
(e) make any material changes in its organizational structure or identity;
or (f) enter into any agreement to do any of the foregoing. 

	Reborrowings and Repayment Terms.

	If the Loan Facility is a Revolving Loan Facility, provided that Borrower is
not in default under any of the Loan Documents, Borrower may borrow, repay and
reborrow amounts under the Loan Facility until the close of business on the
Final Disbursement Date.  Unless the Revolving Loan Facility is renewed or
extended by Lender with the consent of Ex-Im Bank, Borrower shall pay in full
the outstanding Loan Facility Obligations and all accrued and unpaid interest
thereon no later than the first Business Day after the Final Disbursement Date.

	If the Loan Facility is a Transaction Specific Loan Facility, Borrower
shall, within two (2) Business Days of the receipt thereof, pay to Lender (for
application against the outstanding Loan Facility Obligations and accrued and
unpaid interest thereon) all checks, drafts, cash and other remittances it may
receive in payment or on account of the Export-Related Accounts Receivable or
(following the occurrence of and during the continuance of an event of default
under any of the Loan Documents) any other Collateral, in precisely the form
received (except for the endorsement of Borrower where necessary).  Pending such
deposit, Borrower shall hold such amounts in trust for Lender separate and apart
and shall not commingle any such items of payment with any of its other funds or
property.

	Cross Default.  Borrower shall be deemed in default under the Loan
Facility if Borrower fails to pay when due any amount payable to Lender under
any loan or other credit accommodations to Borrower whether or not guaranteed by
Ex-Im Bank. 

	Munitions List.  If any of the Items are articles, services, or
related technical data that are listed on the United States Munitions List (part
121 of title 22 of the Code of Federal Regulations), Borrower shall send a
written notice promptly, but in any event within five (5) Business Days, of
Borrower learning thereof to Lender describing the Items(s) and the
corresponding invoice amount. 

	Suspension and Debarment, etc.  On the date of this Agreement neither
Borrower nor its Principals are (a) debarred, suspended, proposed for
debarment with a final determination still pending, declared ineligible or
voluntarily excluded (as such terms are defined under any of the Debarment
Regulations referred to below) from participating in procurement or
nonprocurement transactions with any United States federal government department
or agency pursuant to any of the Debarment Regulations or (b) indicted,
convicted or had a civil judgment rendered against Borrower or any of its
Principals for any of the offenses listed in any of the Debarment Regulations.
Unless authorized by Ex-Im Bank, Borrower will not knowingly enter into any
transactions in connection with the Items with any person who is debarred,
suspended, declared ineligible or voluntarily excluded from participation in
procurement or nonprocurement transactions with any United States federal
government department or agency pursuant to any of the Debarment Regulations.
Borrower will provide immediate written notice to Lender if at any time it
learns that the certification set forth in this Section 2.19 was erroneous when
made or has become erroneous by reason of changed circumstances. 

	RIGHTS AND REMEDIES.

	Indemnification.  Upon Ex-Im Bank's payment of a Claim to Lender in
connection with the Loan Facility pursuant to the Master Guarantee Agreement,
Ex-Im Bank may assume all rights and remedies of Lender under the Loan Documents
and may enforce any such rights or remedies against Borrower, the Collateral and
any Guarantors.  Borrower shall hold Ex-Im Bank and Lender harmless from and
indemnify them against any and all liabilities, damages, claims, costs and
losses incurred or suffered by either of them resulting from (a) any
materially incorrect certification or statement knowingly made by Borrower or
its agent to Ex-Im Bank or Lender in connection with the Loan Facility, this
Agreement, the Loan Authorization Agreement or any other Loan Documents or
(b) any material breach by Borrower of the terms and conditions of this
Agreement, the Loan Authorization Agreement or any of the other Loan Documents
except for liabilities, damages, claims, costs and losses caused by Ex-Im Bank's
or Lender's gross negligence or willful misconduct.  Borrower also acknowledges
that any statement, certification or representation made by Borrower in
connection with the Loan Facility is subject to the penalties provided in
Article 18 U.S.C. Section 1001. 

	Liens.  Borrower agrees that any and all Liens granted by it to
Lender are also hereby granted to Ex-Im Bank to secure Borrower's obligation,
however arising, to reimburse Ex-Im Bank for any payments made by Ex-Im Bank
pursuant to the Master Guarantee Agreement.  Lender is authorized to apply the
proceeds of, and recoveries from, any property subject to such Liens to the
satisfaction of Loan Facility Obligations in accordance with the terms of any
agreement between Lender and Ex-Im Bank. 

	MISCELLANEOUS.

	Governing Law.  This Agreement and the Loan Authorization Agreement
and the obligations arising under this Agreement and the Loan Authorization
Agreement shall be governed by, and construed in accordance with, the law of the
state governing the Loan Documents. 

	Notification.  All notices required by this Agreement shall be given
in the manner and to the parties provided for in the Export-Import Bank
Factoring Agreement. 

	Partial Invalidity.  If at any time any of the provisions of this
Agreement becomes illegal, invalid or unenforceable in any respect under the law
of any jurisdiction, neither the legality, the validity nor the enforceability
of the remaining provisions hereof shall in any way be affected or
impaired.

	Waiver of Jury Trial.  BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY ACTION, SUIT, PROCEEDING OR OTHER LITIGATION BROUGHT TO RESOLVE
ANY DISPUTE ARISING UNDER, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT,
THE LOAN AUTHORIZATION AGREEMENT, ANY LOAN DOCUMENT, OR ANY OTHER AGREEMENT,
DOCUMENT OR INSTRUMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THEREWITH
OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR
WRITTEN), OR ACTIONS OR OMISSIONS OF LENDER, EX-IM BANK, OR ANY OTHER PERSON,
RELATING TO THIS AGREEMENT, THE LOAN AUTHORIZATION AGREEMENT OR ANY OTHER LOAN
DOCUMENT.

IN WITNESS WHEREOF, Borrower has caused this Agreement to be duly executed as
of the 16th day of May, 2003.

	 	 
	 	
BORROWER

	 	
SOUTHWALL TECHNOLOGIES INC.

	 	 
	 	 
	 	
By: /s/ Michael E. Seifert                 

	 	
(Signature)

	 	 
	 	
Name: Michael E. Seifert                  

	 	
(Print or Type)

	 	 
	 	
Title: Sr. Vice President & CFO        

	 	
(Print or Type)

	 	 
	 	 
	 	
ACKNOWLEDGED:

	 	 
	 	
LENDER

	
'

	
PACIFIC BUSINESS FUNDING, a division of Cupertino National
Bank

	 	 
	 	 
	 	
By: /s/ Melvin L. Robbins                   

	 	
(Signature)

	 	 
	 	
Name: Melvin L. Robbins                    

	 	
(Print or Type)

	 	 
	 	
Title: Sr. Vice President

	 	
(Print or Type)

/s/ Kevin O'Hare 

Kevin O'Hare 

EVP

ANNEXES:

Annex A-Loan Authorization Agreement or Loan Authorization Notice

 

 

CONSENT OF GUARANTORS

Each of the undersigned as a Guarantor of the obligations of Borrower to the
Lender executing the foregoing Agreement hereby agrees that the foregoing
Agreement, each of their respective Guaranty Agreements and each other Loan
Documents may be assigned to the Export-Import Bank of the United
States.

	 	 
	 	 
	 	

	 	
[INDIVIDUAL GUARANTOR]

	 	 
	 	 
	 	
[CORPORATE GUARANTOR]

	 	 
	 	 
	 	
By:

	 	
Name:

	 	
Title:

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