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EXHIBIT 10.6

                                 LOAN AGREEMENT

         THIS AGREEMENT, made and entered into the 8th day of May, 2002, by and
between STILLWATER NATIONAL BANK AND TRUST COMPANY OF STILLWATER, OKLAHOMA, a
National Banking Corporation (hereinafter referred to as "BANK") and EXCALIBUR
HOLDINGS, INC., a Texas corporation (hereinafter referred as "DEBTOR").

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

                              I. THE REVOLVING LOAN

         1 1. Subject to the terms and conditions of this Agreement, Debtor
shall have the right from time to time, prior to the Termination Date, to borrow
and, upon repayment, reborrow from the Bank amounts not at any one time in the
aggregate principal balance exceeding the lesser of: (i) the Borrowing Base
determined as of the date of borrowing; or (ii) TWO MILLION AND NO/100 DOLLARS
($2,000,000.00) (hereinafter referred to as "REVOLVING LOAN"). For these
purposes:

                  (a) "Termination Date" means May 8th, 2003.

                  (b) "Borrowing Base" means, as of any given date, the sum of
         the following factors: (1) eighty percent (80%), or at the Bank's sole
         discretion any lesser percentage designated upon sixty (60) days
         notice, of Eligible Trade Accounts Receivable of Debtor; plus (2) fifty
         percent (50%) of the value of the inventory of Debtor, up to a maximum
         of ONE MILLION AND NO/100 DOLLARS ($1,000,000.00).

                  (c) "Trade Accounts Receivable" means, as of any given date,
         all accounts receivable of Debtor and the Corporate Guarantors (defined
         below) for goods sold and delivered and services rendered by Debtor and
         the Corporate Guarantors in the ordinary course of the business
         presently conducted by each of them and representing amounts then
         invoiced and due and owing. (Debtor and the Corporate Guarantors are
         hereinafter collectively referred to as "Eligible Creditors") A Trade
         Account Receivable shall be an "Eligible Trade Account Receivable", and
         shall be included in the Borrowing Base, only if and so long as it
         meets each and all of the following requirements:

                           (1) It is a valid, genuine and legally enforceable
                  obligation, subject to no defense, set off or counter-claim,
                  of the account debtor or other obligor named herein or in the
                  Eligible Creditors records pertaining thereto, and that the
                  Eligible Creditor has not received from the account debtor or
                  other obligor any notification repudiating such obligation or
                  asserting that such obligation is subject to any defense, set
                  off or counterclaim; and

                           (2) It is owned by an Eligible Creditor free and
                  clear of all interests, liens, attachments, encumbrances and
                  security interests except the security interest granted to the
                  Bank pursuant to this Agreement; and

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

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

                           (5) Debtor has not received notice from the Bank that
                  the credit of the account debtor is not satisfactory to the
                  Bank for any reason; and

                           (6) The account debtor is not an entity in which any
                  Eligible Creditor has a controlling interest; and

                           (7) Eligible Trade Accounts Receivable shall not
                  include any account receivable of the same account debtor to
                  the Eligible Creditor in excess of fifteen percent (15%) of
                  the then Eligible Trade Accounts Receivable calculated after
                  excluding Eligible Creditor's Eligible Trade Accounts
                  Receivable; and

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

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

         In addition to the eligibility requirements set forth in clause (c) of
this Section 1.1, the Bank shall have the right (acting at its sole discretion
with or without the consent of the Debtor) from time to time by written notice
to Debtor to establish additional or further eligibility requirements and to
change in any manner the eligibility requirements set forth in said clauses or
so established, and if at any time any Receivables fail to meet all the
eligibility requirements set forth in clause (c) of this Section 1.1 or
established or changed from time to time by the Bank, they shall immediately be
excluded from the Borrowing Base. Pursuant to this Agreement, the Bank is
granted collateral security in Eligible Trade Accounts Receivable, Equipment and
Inventory. Notwithstanding any apportionment or segregation of collateral made
by the Bank for purposes of determining the Borrowing Base, all collateral
granted to the Bank pursuant to this Agreement and all other collateral rights,
interests and properties now or at any time hereafter available to the Bank,
shall secure and may be applied to pay any or all indebtedness of the Debtor
secured thereby, in any manner or order of application and without regard to any
such apportionment or segregation.

         1.2 All loans made by the Bank under this Agreement for the Revolving
Loan shall be evidenced by and payable with interest on the terms set forth in a
Promissory Note of Debtor ("REVOLVING NOTE") payable to the order of the Bank
with interest in the form and with the provisions set forth in Exhibit "A"
attached hereto. The Bank is hereby authorized, but shall not be required, to

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make notations of advances by it to the Debtor and payments to it by the Debtor
on the reverse side of the Note. Such notations, or the entries on any liability
ledger records maintained by or for the Bank as to indebtedness of Debtor, shall
be presumed correct until the contrary is established by Debtor. Upon demand by
the Bank at any time or from time to time, the Debtor will confirm and admit by
signed writing the exact amount of indebtedness for principal and interest then
outstanding under this Agreement. Any billing statement or accounting rendered
by or for the Bank shall be conclusive and fully binding on Debtor unless
specific written notice of exception is given to the Bank by Debtor within
thirty (30) days thereafter.

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

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

         1.5 The Bank may make loans in any amount and in any manner requested
orally or in writing by any officer or agent of the Debtor or by any person
reasonably believed by the Bank to be an officer or agent of the Debtor. Loan
proceeds may be disbursed by deposit in any deposit account of the Debtor, by an
instrument payable to Borrower.

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

                                  II. INTEREST

         2.1 The Revolving Note shall bear interest at the "CONTRACT RATE",
which is defined as the "BASE RATE" plus the "MARGIN."

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

         2.3 The Margin shall equal one percentage (1%) point.

         2.4 Notwithstanding anything contained herein to the contrary, the
Contract Rate under the Revolving Note shall never be less than Six Percent (6%)
per annum.

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                            III. CONDITIONS PRECEDENT

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

                  (a) Each representation and warranty set forth in Section 4.1
         shall be true and correct as of the date of borrowing, except for
         changes subsequent to the date of this Agreement caused by transactions
         permitted under the terms of this Agreement; and

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

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

                           (1) The Revolving Note duly executed by Debtor.

                           (2) A Security Agreement duly executed by Debtor, in
                  form and substance satisfactory to the Bank, granting the Bank
                  a security interest in all present and future equipment,
                  inventory, and accounts receivable of the Debtor.

                           (3) Copies of resolutions of the board of directors
                  of the Debtor and each of the Corporate Guarantors authorizing
                  the execution, delivery and performance of this Agreement, the
                  Revolving Note and the Security Agreement by the Debtor and
                  the Guaranty by each of the Corporate Guarantors.

                           (4) Borrowing Resolutions duly executed by the Debtor
                  and each of the Corporate Guarantors confirming the authorized
                  signatory of this Agreement and the other documents provided
                  for herein.

                           (5) A copy of the Articles of Incorporation of the
                  Debtor and a Certificate of Good Standing as to the Debtor and
                  each Corporate Guarantor issued by the Secretary of State of
                  the state of each parties state of incorporation; a copy of
                  the Certificate of Good Standing as to the Debtor and each
                  Corporate Guarantor issued by the Secretary of State of each
                  parties state of incorporation, and a copy of the By-laws of
                  the Debtor and each Corporate Guarantor.

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

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

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                           (8) An appraisal of the ELIGIBLE CREDITORS' equipment
                  which is satisfactory to the Bank.

                           (9) Guaranty Agreements in form and substance
                  satisfactory to the Bank executed by William S. H. Stuart and
                  Matthew C. Flemming, (hereinafter collectively referred to as
                  Individual Guarantors) and Guaranty Agreements in form and
                  substance satisfactory to the Bank executed by Excalibur
                  Aerospace, Inc., Excalibur Steel, Inc., Excalibur Services,
                  Inc. and Shumate Machine Works, Inc. (collectively herein
                  referred to as "Corporate Guarantors") each of which
                  guarantees the payment of the Revolving Note. Security
                  Agreements in form and substance satisfactory to the Bank
                  executed by each of the Corporate Guarantors guaranteeing the
                  performance of their guaranty agreements. The Individual
                  Guarantors and the Corporate Guarantors are sometime referred
                  to herein as the "Guarantors".

                           (10) UCC Financing Statement describing the
                  collateral securing the repayment of the Revolving Note and
                  UCC Financing Statements for each of the Corporate Guarantors
                  securing the performance of their Guaranty Agreement.

                       IV. REPRESENTATIONS AND WARRANTIES

         4.1 Debtor represents and warrants to the Bank that:

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

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

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

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

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

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

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

                  (h) When the financing statement delivered pursuant to this
         Agreement is filed in the proper office where the Debtor is
         incorporated, the Bank will have a valid and perfected first security
         interest in the collateral described in the Security Agreement, subject
         to no prior security interest, assignment, lien or encumbrance except
         interests, if any, specifically approved by the Bank in writing. When
         the financing statements delivered by each Corporate Guarantor pursuant
         to this Agreement is filed in the proper office where the Corporate
         Guarantor is incorporated, the Bank will have a valid and perfected
         first security interest in the collateral described in the security
         agreement securing the performance of the guaranty agreement, subject
         to no prior security interest, assignment lien or encumbrance, except
         interests, if any, specifically approved by the Bank in writing,
         including the prior security interest in certain equipment vested in
         Mr. Tommy Worth.

                  (i) All assets of the Debtor are free and clear of all liens,
         security interests and encumbrances, except those specifically
         permitted by Bank. All pledged assets of the Corporate Guarantors are
         free and clear of all liens, security interests and encumbrances,
         except interests, if any, specifically approved by the Bank in writing,
         including the prior security interest in certain equipment vested in
         Mr. Tommy Worth.

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

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

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

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

                            V. AFFIRMATIVE COVENANTS

         5.1 The Debtor covenants and agrees that it will:

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

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

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

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

                           (1) Beginning August 1, 2002, quarterly balance sheet
                  and income statements of the Debtor to be delivered thirty
                  (30) days after its due date.

                           (2) Beginning May 1, 2003, annual audited financial
                  statements of the Debtor to be delivered within ninety (90)
                  days after its due date.

                           (3) Beginning June 1, 2002, monthly Accounts
                  Receivable Aging/Listings and Borrowing Base, and inventory
                  listing of the Debtor to be delivered fifteen (15) days after
                  the end of each month.

                           (4) Beginning March 11, 2003, annual financial
                  statement of Guarantor William Stuart to be delivered ten (10)
                  days after its due date.

                           (5) Beginning January 29, 2003, annual financial
                  statement of Guarantor Matthew Flemming to be delivered ten
                  (10) days after its due date.

                           (6) Annual financial statement of Guarantor Excalibur
                  Aerospace, Inc. to be delivered ninety (90) days after the end
                  of each one of its fiscal years.

                           (7) Annual financial statement of Guarantor Excalibur
                  Steel, Inc. to be delivered ninety (90) days after the end of
                  each one of its fiscal years.

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                           (8) Annual financial statement of Guarantor Excalibur
                  Services, Inc. to be delivered ninety (90) days after the end
                  of each one of its fiscal years.

                           (9) Annual financial statement of Guarantor Shumate
                  Machine Works, Inc. to be delivered ninety (90) days after the
                  end of each one of its fiscal years.

                  (e) Debtor shall maintain a net worth of at least THREE
         MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($3,500,000.00). The
         Debtor will provide the Bank within forty-five (45) days after the
         close of each of its fiscal years information reasonably needed by the
         Bank to determine Debtor's net worth.

                  (f) Within ninety (90) days of the execution of this
         Agreement, the Debtor will achieve a "DEBT SERVICE RATIO" of no greater
         than 1.5 to 1.0. The Debtor will provide the Bank within forty-five
         (45) days after the close of each of its fiscal year's quarter with
         information reasonably needed by the Bank to determine the Debt Service
         Ratio. As used herein, Debt Service Ratio shall be defined as the ratio
         of the Debtor's earnings before interest, taxes and depreciation to
         Debtor's debt service.

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

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

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

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

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

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

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                              VI NEGATIVE COVENANTS

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

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

                           (1) Indebtedness arising under this Agreement;

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

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

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

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

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

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

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

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

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

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

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

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

                  (g) Without the Bank's prior approval declare or pay any
         dividends or purchase or redeem any of its capital stock, or otherwise
         distribute any property on account of its capital stock.

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

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

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

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

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

                             VII. EVENTS OF DEFAULT

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

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

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

                  (c) Any representation or warranty contained in Section IV
         shall prove to have been materially false or misleading as of this date
         or (except to the extent of changes caused by transactions permitted
         under this Agreement) as of any date on which a loan is made to the

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         Debtor under this Agreement; or any other representation or warranty
         made by or on behalf of the Debtor to the Bank (whether made in this
         Agreement, in any financial statement, report or certificate furnished
         pursuant to this Agreement, or otherwise in any manner) shall prove to
         have been false or materially misleading as of the time as of which
         such representation or warranty was made.

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

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

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

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

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

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

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

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

                  (d) Without notice to or demand upon the Debtor or any other
         person, off set any indebtedness then owed to the Bank by the Debtor,
         whether or not such indebtedness is then due, against the indebtedness
         evidenced by the Revolving Note (including, without limitation,
         indebtedness transferred by the Bank to a third party by participation,
         negotiation, assignment, succession or otherwise) and any other
         indebtedness then owed by the Debtor to the Bank, whether or not then
         due, and exercise any and all other rights of set off, application or
         banker's lien available to the Bank by law or agreement.

         7.3 Any Event of Default may be waived in writing by the Bank, but not
otherwise; and the failure to exercise the rights and remedies referred to in
Paragraph 7.2 shall not operate as a waiver or otherwise preclude enforcement of
such rights and remedies. A waiver shall be effective only in the specific
instance and for the specific purpose given. The rights and remedies of the Bank
shall be cumulative and the exercise or enforcement of any one right or remedy
shall neither be a condition to nor bar the exercise and enforcement of any
other.

         7.4 The Debtor agrees to pay the Bank, on demand, the amount of all
out-of-pocket expenses, including the reasonable fees and disbursements of legal
counsel for the Bank, incurred or paid by the Bank in connection with or as a
result of the exercise or enforcement of any right or remedy referred to in
Section 4.2, except to the extent payment of the same by the Debtor may be
prohibited by law.

                               VIII. MISCELLANEOUS

         8.1 All notices to be given to the Debtor hereunder shall be
sufficiently given if sent in writing by certified or registered mail, addressed
to the Debtor at 16825 Northcase Drive, Suite 630, Houston, TX 77060, Attention:
CFO, and to the Bank at P.O. Box 521500, Tulsa, OK 74152, Attention: President,
or addressed to such other address or to the attention of such other person as
any party may from time to time designate in written notice to the other party.

                                       12

<PAGE>

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

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

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

                                   "DEBTOR"
                                   Excalibur Holdings, Inc.
                                   a Texas corporation

                                   By: /s/ William S. H. Stuart
                                       -----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

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

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

                                       13

<PAGE>

                                   "INDIVIDUAL GUARANTORS"

                                   By: /s/ William S. H. Stuart
                                       -----------------------------------------
                                       William S. H. Stuart

                                   By: /s/ Matthew C. Flemming
                                       -----------------------------------------
                                       Matthew C. Flemming

                                   "CORPORATE GUARANTORS"

                                   Excalibur Aerospace, Inc.
                                   an Oklahoma corporation

                                   By: /s/ William S. H. Stuart
                                       -----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

                                   Excalibur Steel, Inc.
                                   an Oklahoma corporation

                                   By: /s/ William S. H. Stuart
                                       -----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

                                   Excalibur Services, Inc.
                                   an Oklahoma Corporation

                                   By: /s/ William S. H. Stuart
                                       -----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

                                   Shumate Machine Works, Inc.
                                   a Texas corporation

                                   By: /s/ William S. H. Stuart
                                       -----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

                                     14

<PAGE>

                     PERSONS AUTHORIZED TO REQUEST ADVANCES

NAME                              TITLE                   SPECIMEN SIGNATURE

1. William S. H. Stuart     Chairman and              /s/ William S. H. Stuart
                            Chief Executive Officer   ------------------------

2. Matthew C. Flemming      Chief Executive Officer   /s/ Matthew C. Flemming
                                                      ------------------------

3.
                                                      ------------------------

                                       15<PAGE>

                                                                    EXHIBIT 10.7

                           AMENDMENT TO LOAN AGREEMENT

         THIS AMENDMENT TO LOAN AGREEMENT, ("AMENDMENT TO LOAN AGREEMENT") made
and entered into the _____ day of June, 2002, by and between STILLWATER NATIONAL
BANK AND TRUST COMPANY OF STILLWATER, OKLAHOMA, a National Banking Corporation
(hereinafter referred to as "BANK") and EXCALIBUR HOLDINGS, INC., a Texas
corporation (hereinafter referred as "DEBTOR").

         WHEREAS, Bank and Debtor entered into that certain revolving loan
agreement (the "LOAN AGREEMENT") dated the 8TH DAY OF MAY, 2002, whereby Bank
(sometimes referred to therein as "SNB") agreed to make a revolving loan to
Debtor amounts not at any one time in the aggregate principal balance exceeding
the lesser of: (i) the Borrowing Base determined as of the date of borrowing; or
(ii) TWO MILLION AND NO/100 DOLLARS ($2,000,000.00); and

         WHEREAS, Bank and Debtor desire to increase the maximum loan amount to
TWO MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($2,500,000.00).

         NOW THEREFORE, in consideration of the mutual promises herein
contained, and in consideration of other good and valuable consideration, the
receipt, adequacy and sufficiency of which is hereby acknowledged the parties
hereby agree as follows:

         I. AMENDMENTS TO LOAN AGREEMENT. The Loan Agreement is hereby amended
and modified as follows:

         A.       Paragraph 1.1 is amended to read as follows:

                  "1.1 Subject to the terms and conditions of this Agreement,
                  Debtor shall have the right from time to time, prior to the
                  Termination Date, to borrow and, upon repayment, reborrow from
                  the Bank amounts not at any one time in the aggregate
                  principal balance exceeding the lesser of: (i) the Borrowing
                  Base determined as of the date of borrowing; or (ii) TWO
                  MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS
                  ($2,500,000.00) (hereinafter referred to as "REVOLVING LOAN").
                  For these purposes:"

         B.       Subparagraph (b) of Paragraph 1.1 is amended to read as
                  follows:

                           "(b) "Borrowing Base" means, as of any given date,
                  the sum of the following factors: (l) eighty percent (80%), or
                  at the Bank's sole discretion any lesser percentage designated
                  upon sixty (60) days notice, of Eligible Trade Accounts
                  Receivable of Debtor; plus (2) fifty percent (50%) of the
                  value of the inventory of Debtor, up to a maximum of ONE
                  MILLION TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS
                  ($1,250,000.00)."
<PAGE>

         C.       Subparagraph (c)(7) of Paragraph 1.1 is hereby amended to read
                  as follows:

                           "(7) Eligible Trade Accounts Receivable shall not
                  include any account receivable of the same account debtor to
                  the Eligible Creditor in excess of fifteen percent (15%) of
                  the then Eligible Trade Accounts Receivable calculated after
                  excluding Eligible Creditor's Eligible Trade Accounts
                  Receivable; PROVIDED, HOWEVER, Bank hereby conditionally
                  waives the FIFTEEN PERCENT (15%) limitation regarding J&G
                  STEEL AND ENVENTURE, a joint venture of Halliburton and Shell
                  Oil Company, ("J&G") and instead shall permit Eligible Trade
                  Accounts Receivable to include J&G's account receivable to the
                  Eligible Creditors to be up to TWENTY-FIVE (25%) of the then
                  Eligible Trade Accounts Receivable calculated after excluding
                  Eligible Creditor's Eligible Trade Accounts Receivable, which
                  waiver may be withdrawn by Bank, in its sole discretion, at
                  any time upon notice to Debtor; and"

         D.       Subparagraph (a) of Paragraph 6.1 shall be amended to read as
                  follows:

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

         E.       The first sentence of Paragraph 8.2 shall be amended to read:

                  "The Debtor shall pay to the Bank a loan fee of 1/4 of 1% of
                  the maximum aggregate principal amount permitted under of the
                  Revolving Note. In the event there is an increase in the
                  maximum amount permitted, the Debtor shall pay to the Bank an
                  additional loan fee of 1/4 of 1% of the amount of such
                  increase. The Debtor shall pay to the Bank the amount of all
                  reasonable out-of-pocket expenses, including the fees, and
                  disbursements of legal counsel for the Bank paid or incurred
                  by the Bank in connection with the preparation, execution,
                  delivery and performance of the Loan Agreement, the Revolving
                  Note, the Security Agreement, the Guaranties and all documents
                  deemed necessary by the Bank, and any amendment or
                  modification thereof. The Debtor agrees to indemnify and hold

                                        2
<PAGE>

                  harmless the Bank from and against any and all taxes
                  (including documentary taxes), assessments and other charges
                  (except net income taxes) levied or based upon or payable in
                  connection with the execution, delivery and performance of the
                  Loan Agreement or the Note, the Security Agreement, or any
                  amendment thereof, levied or based upon payable in connection
                  with, or measured by the indebtedness evidenced by the
                  Revolving."

         II. REPRESENTATIONS AND WARRANTIES. Debtor hereby represents and
warrants to Bank that there does not presently exist any Event of Default under
Section 7.l of the Loan Agreement or any event which, with the giving of notice
or the lapse of time (or both) would become an Event of Default, and that there
has been no material adverse change in Debtor's financial condition since the
making of the Loan. Debtor acknowledges that Bank has materially relied upon
this representation and warranty as a condition precedent to Bank's making this
Amendment to Loan Agreement.

         III. OTHER CHANGES. The provisions of this Amendment to Loan Agreement
shall be incorporated into the Loan Agreement in a manner so as to reasonably
give effect to the intent of the parties under this Amendment to Loan Agreement.
In the event of a conflict between the provisions of this Amendment to Loan
Agreement and the Loan Agreement, the provisions of this Amendment to Loan
Agreement shall take precedence. Except as specifically set forth herein, there
are no other changes to the Loan Agreement.

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

                                   "DEBTOR"
                                   Excalibur Holdings, Inc.
                                   a Texas corporation

                                   By: /S/ William S. H. Stuart
                                      ----------------------------------------
                                      William S. H. Stuart, President and Chief
                                      Executive Officer

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

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

                                      3
<PAGE>

                                   "INDIVIDUAL GUARANTORS"

                                    /S/ William S. H. Stuart
                                    ------------------------------------
                                    William S. H. Stuart

                                    /S/ Matthew C. Flemming
                                    ------------------------------------
                                    Matthew C. Flemming

                                    "CORPORATE GUARANTORS"

                                    Excalibur Aerospace, Inc.
                                    an Oklahoma corporation

                                   By: /S/ William S. H. Stuart
                                      ----------------------------------------
                                      William S. H. Stuart, President and Chief
                                      Executive Officer

                                    Excalibur Steel, Inc.
                                    an Oklahoma corporation

                                   By: /S/ William S. H. Stuart
                                      ----------------------------------------
                                      William S. H. Stuart, President and Chief
                                      Executive Officer, Excalibur Services,
                                      Inc. an Oklahoma corporation

                                   By: /S/ William S. H. Stuart
                                      ----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

                                    Shumate Machine Works, Inc.
                                    a Texas corporation

                                   By: /S/ William S. H. Stuart
                                      ----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

                                       4

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