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                                                                    EXHIBIT 10.2

                                   KOMAG, INC.

                            INDEMNIFICATION AGREEMENT

         This Indemnification Agreement ("AGREEMENT") is made as of June 30,
2002 by and between Komag, Inc., a Delaware corporation (the "COMPANY"), and
[__] ("INDEMNITEE").

         WHEREAS, the Company and Indemnitee recognize the increasing difficulty
in obtaining directors' and officers' liability insurance, the significant
increases in the cost of such insurance and the general reductions in the
coverage of such insurance;

         WHEREAS, the Company and Indemnitee further recognize the substantial
potential increase in corporate litigation in general (frivolous or otherwise),
subjecting officers and directors to expensive litigation risks at the same time
as the coverage of liability insurance has been limited, whether or not such
potential litigation has merit;

         WHEREAS, Indemnitee does not regard the current protection available as
adequate under the present circumstances, and Indemnitee and other officers and
directors of the Company may not be willing to continue to serve as officers and
directors without additional protection; and

         WHEREAS, the Company desires to attract and retain the services of
highly qualified individuals, such as Indemnitee, to serve as officers and
directors of the Company and to indemnify its officers and directors so as to
provide them with the maximum protection permitted by law.

         NOW, THEREFORE, the Company and Indemnitee hereby agree as follows:

      1. Indemnification.

      (a) Third Party Proceedings. The Company shall indemnify Indemnitee if
Indemnitee is or was a party or is threatened to be made a party to any
threatened, pending or completed action or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the
Company) by reason of the fact that Indemnitee is or was a director, officer,
employee or agent of the Company, or any subsidiary of the Company, by reason of
any action or inaction on the part of Indemnitee while an officer or director or
by reason of the fact that Indemnitee is or was serving at the request of the
Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, against expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement (if
such settlement is approved in advance by the Company, which approval shall not
be unreasonably withheld) actually and reasonably incurred by Indemnitee in
connection with such action or proceeding if Indemnitee acted in good faith and
in a manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe Indemnitee's conduct was
unlawful. The termination of any action, suit or proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent,
shall not, of itself, create a presumption that (i) Indemnitee did not act in
good faith, (ii)
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Indemnitee did not act in a manner which Indemnitee reasonably believed to be in
or not opposed to the best interests of the Company, or (iii) with respect to
any criminal action or proceeding, Indemnitee had no reasonable cause to believe
that Indemnitee's conduct was unlawful. (b) Proceedings By or in the Right of
the Company. The Company shall indemnify Indemnitee if Indemnitee was or is a
party or is threatened to be made a party to any threatened, pending or
completed action or suit by or in the right of the Company or any subsidiary of
the Company to procure a judgment in its favor by reason of the fact that
Indemnitee is or was a director, officer, employee or agent of the Company, or
any subsidiary of the Company, by reason of any action or inaction on the part
of Indemnitee while an officer or director or by reason of the fact that
Indemnitee is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, against expenses (including attorneys' fees) and, to
the fullest extent permitted by law, amounts paid in settlement, in each case to
the extent actually and reasonably incurred by Indemnitee in connection with the
defense or settlement of such action or proceeding if Indemnitee acted in good
faith and in a manner Indemnitee reasonably believed to be in or not opposed to
the best interests of the Company and its stockholders, except that no
indemnification shall be made in respect of any claim, issue or matter as to
which Indemnitee shall have been adjudged to be liable to the Company in the
performance of Indemnitee's duty to the Company and its stockholders unless and
only to the extent that the court in which such action or suit is or was pending
shall determine upon application that, in view of all the circumstances of the
case, Indemnitee is fairly and reasonably entitled to indemnity for such
expenses and then only to the extent that the court shall determine.

      2. No Right to Employment. Nothing contained in this Agreement is intended
to or shall create in any Indemnitee any right to continued employment.

      3. Expenses; Indemnification Procedure.

            (a) Advancement of Expenses. The Company shall advance all expenses
incurred by Indemnitee in connection with the investigation, defense, settlement
or appeal of any civil or criminal action or proceeding referenced in Section
1(a) or (b) hereof (but not amounts actually paid in settlement of any such
action or proceeding). Indemnitee hereby undertakes to repay such expenses
advanced only if, and to the extent that, it shall ultimately be determined that
Indemnitee is not entitled to be indemnified by the Company as authorized
hereby. The advances to be made hereunder shall be paid by the Company to
Indemnitee within twenty (20) days following delivery of a written request
therefor by Indemnitee to the Company.

            (b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a
condition precedent to his right to be indemnified under this Agreement, give
the Company notice in writing as soon as practicable of any claim made against
Indemnitee for which indemnification will or could be sought under this
Agreement. Notice to the Company shall be directed to the Chief Executive
Officer of the Company at the address shown on the signature page of this
Agreement (or such other address as the Company shall designate in writing to
Indemnitee). Notice shall be deemed received three business days after the date
postmarked if sent by domestic certified or registered mail, properly addressed;
otherwise notice shall be deemed received when such notice shall actually be
received by the

                                                                             -2-
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Company. In addition, Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee's
power.

            (c) Procedure. Any indemnification provided for in Section 1 shall
be made no later than forty-five (45) days after receipt of the written request
of Indemnitee. If a claim under this Agreement, under any statute, or under any
provision of the Company's Certificate of Incorporation or Bylaws providing for
indemnification, is not paid in full by the Company within forty-five (45) days
after a written request for payment thereof has first been received by the
Company, Indemnitee may, but need not, at any time thereafter submit his claim
to arbitration as described in Section 14 to recover the unpaid amount of the
claim and, subject to Section 15 of this Agreement, Indemnitee shall also be
entitled to be paid for the expenses (including attorneys' fees) of bringing
such claim. It shall be a defense to any such action (other than a claim brought
for expenses incurred in connection with any action or proceeding in advance of
its final disposition) that Indemnitee has not met the standards of conduct
which make it permissible under applicable law for the Company to indemnify
Indemnitee for the amount claimed, but the burden of proving such defense shall
be on the Company, and Indemnitee shall be entitled to receive interim payments
of expenses pursuant to Subsection 3(a) unless and until such defense may be
finally adjudicated by court order or judgment from which no further right of
appeal exists or an arbitration panel as described in Section 14. It is the
parties' intention that if the Company contests Indemnitee's right to
indemnification, the question of Indemnitee's right to indemnification shall be
for the court or arbitration panel to decide, and neither the failure of the
Company (including its Board of Directors, any committee or subgroup of the
Board of Directors, independent legal counsel, or its stockholders) to have made
a determination that indemnification of Indemnitee is proper in the
circumstances because Indemnitee has met the applicable standard of conduct
required by applicable law, nor an actual determination by the Company
(including its Board of Directors, any committee or subgroup of the Board of
Directors, independent legal counsel, or its stockholders) that Indemnitee has
not met such applicable standard of conduct, shall create a presumption that
Indemnitee has or has not met the applicable standard of conduct.

            (d) Notice to Insurers. If, at the time of the receipt of a notice
of a claim pursuant to Section 3(b) hereof, the Company has director and officer
liability insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such policies.

            (e) Selection of Counsel. In the event the Company shall be
obligated under Section 3(a) hereof to pay the expenses of any proceeding
against Indemnitee, the Company, if appropriate, shall be entitled to assume the
defense of such proceeding, with counsel approved by Indemnitee, which approval
shall not be unreasonably withheld, upon the delivery to Indemnitee of written
notice of its election so to do. After delivery of such notice, approval of such
counsel by Indemnitee and the retention of such counsel by the Company, the
Company will not be liable to Indemnitee under this Agreement for any fees of
counsel subsequently incurred by Indemnitee with respect to the same proceeding,
provided that (i) Indemnitee shall have the right to employ his own counsel in
any such proceeding at Indemnitee's expense; and (ii) if (A) the employment of
counsel by Indemnitee has been previously authorized by the Company, (B)
Indemnitee shall have

                                                                             -3-
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reasonably concluded that there may be a conflict of interest between the
Company and Indemnitee in the conduct of any such defense or (C) the Company
shall not, in fact, have employed counsel to assume the defense of such
proceeding, then the fees and expenses of Indemnitee's counsel shall be at the
expense of the Company.

      4. Additional Indemnification Rights; Nonexclusivity.

            (a) Scope. Notwithstanding any other provision of this Agreement,
the Company hereby agrees to indemnify the Indemnitee to the fullest extent
permitted by law, notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company's Certificate
of Incorporation, the Company's Bylaws or by statute. In the event of any
change, after the date of this Agreement, in any applicable law, statute or rule
which expands the right of a Delaware corporation to indemnify a member of its
Board of Directors or an officer, such changes shall be, ipso facto, within the
purview of Indemnitee's rights and Company's obligations under this Agreement.
In the event of any change in any applicable law, statute or rule which narrows
the right of a Delaware corporation to indemnify a member of its Board of
Directors or an officer, such changes, to the extent not otherwise required by
such law, statute or rule to be applied to this Agreement shall have no effect
on this Agreement or the parties' rights and obligations hereunder.

            (b) Nonexclusivity. The indemnification provided by this Agreement
shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Company's Certificate of Incorporation, its Bylaws, any agreement, any
vote of stockholders or disinterested directors, the General Corporation Law of
the State of Delaware, or otherwise, both as to action in Indemnitee's official
capacity and as to action in another capacity while holding such office. The
indemnification provided under this Agreement shall continue as to Indemnitee
for any action taken or not taken while serving in an indemnified capacity even
though he may have ceased to serve in such capacity at the time of any action or
other covered proceeding.

      5. Partial Indemnification. If Indemnitee is entitled under any provision
of this Agreement to indemnification by the Company for some or a portion of the
expenses, judgments, fines, penalties or amounts paid in settlement actually or
reasonably incurred by him in the investigation, defense, appeal or settlement
of any civil or criminal action or proceeding, but not, however, for the total
amount thereof, the Company shall nevertheless indemnify Indemnitee for the
portion of such expenses, judgments, fines or penalties to which Indemnitee is
entitled.

      6. Mutual Acknowledgement. Both the Company and Indemnitee acknowledge
that in certain instances, Federal law or applicable public policy may prohibit
the Company from indemnifying its directors and officers under this Agreement or
otherwise. Indemnitee understands and acknowledges that the Company has
undertaken or may be required in the future to undertake with the Securities and
Exchange Commission to submit the question of indemnification to a court in
certain circumstances for a determination of the Company's right under public
policy to indemnify Indemnitee.

      7. Directors' and Officers' Liability Insurance. The Company shall, from
time to time, make a good faith determination whether or not it is practicable
for the Company to obtain and

                                                                             -4-
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maintain a policy or policies of insurance with reputable insurance companies
providing the officers and directors of the Company with coverage for losses
from wrongful acts, or to ensure the Company's performance of its
indemnification obligations under this Agreement. Among other considerations,
the Company will weigh the costs of obtaining such insurance coverage against
the protection afforded by such coverage. In all policies of directors' and
officers' liability insurance, Indemnitee shall be named as an insured in such a
manner as to provide Indemnitee the same rights and benefits as are accorded to
the most favorably insured of the Company's directors, if Indemnitee is a
director; or of the Company's officers, if Indemnitee is not a director of the
Company but is an officer; or of the Company's key employees, if Indemnitee is
not an officer or director but is a key employee. Notwithstanding the foregoing,
the Company shall have no obligation to obtain or maintain such insurance if the
Company determines in good faith that such insurance is not reasonably
available, if the premium costs for such insurance are disproportionate to the
amount of coverage provided, if the coverage provided by such insurance is
limited by exclusions so as to provide an insufficient benefit, or if Indemnitee
is covered by similar insurance maintained by a subsidiary or parent of the
Company. If the Company determines not to obtain or maintain such insurance
coverage, the Company shall promptly so notify Indemnitee in writing. In
addition, if the Company obtains or maintains any such insurance coverage, then
from time to time upon request of Indemnitee, the Company shall provide
Indemnitee with a summary of the terms of or a copy of the binder for such
insurance coverage. If the Company does obtain such insurance coverage, it shall
inform any of the parties covered thereunder of any material changes in the
terms of the insurance or if, for any reason, the insurance coverage lapses or
is scheduled to lapse.

      8. Severability. Nothing in this Agreement is intended to require or shall
be construed as requiring the Company to do or fail to do any act in violation
of applicable law. The Company's inability, pursuant to court order, to perform
its obligations under this Agreement shall not constitute a breach of this
Agreement. The provisions of this Agreement shall be severable as provided in
this Section 8. If this Agreement or any portion hereof shall be invalidated on
any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any applicable
portion of this Agreement that shall not have been invalidated, and the balance
of this Agreement not so invalidated shall be enforceable in accordance with its
terms.

      9. Exceptions. Any other provision herein to the contrary notwithstanding,
the Company shall not be obligated pursuant to the terms of this Agreement:

            (a) Excluded Acts. To indemnify Indemnitee for any acts or omissions
or transactions from which a director may not be indemnified under the Delaware
General Corporation Law; or

            (b) Claims Initiated by Indemnitee. To indemnify or advance expenses
to Indemnitee with respect to proceedings or claims initiated or brought
voluntarily by Indemnitee and not by way of defense, except with respect to
proceedings brought to establish or enforce a right to indemnification under
this Agreement or any other statute or law or otherwise as required under
Section 145 of the Delaware General Corporation Law, but such indemnification or
advancement of expenses may be provided by the Company in specific cases if the
Board of Directors has approved the initiation or bringing of such claim; or

                                                                             -5-
<PAGE>
            (c) Lack of Good Faith. To indemnify Indemnitee for any expenses
incurred by the Indemnitee with respect to any proceeding instituted by
Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction or the arbitration panel determines that each of the material
assertions made by the Indemnitee in such proceeding was not made in good faith
or was frivolous; or

            (d) Insured Claims. To indemnify Indemnitee for expenses or
liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) which
have been paid directly to Indemnitee by an insurance carrier under a policy of
directors' and officers' liability insurance maintained by the Company; or (e)
Claims Under Section 16(b). To indemnify Indemnitee for expenses and the payment
of profits arising from the purchase and sale by Indemnitee of securities in
violation of Section 16(b) of the Securities Exchange Act of 1934, as amended,
or any similar successor statute.

      10. Effectiveness of Agreement. To the extent that the indemnification
permitted under the terms of certain provisions of this Agreement exceeds the
scope of the indemnification provided for in the Delaware General Corporation
Law, such provisions shall not be effective unless and until the Company's
Certificate of Incorporation authorizes such additional rights of
indemnification. In all other respects, the balance of this Agreement shall be
effective as of the date set forth on the first page and may apply to acts or
omissions of Indemnitee which occurred prior to such date if Indemnitee was an
officer, director, employee or other agent of the Company, or was serving at the
request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, at the time
such act or omission occurred.

      11. Construction of Certain Phrases.

            (a) For purposes of this Agreement, references to the "Company"
shall include, in addition to the resulting corporation, any constituent
corporation (including any constituent of a constituent) absorbed in a
consolidation or merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors, officers, employees or
agents, so that if Indemnitee is or was a director, officer, employee or agent
of such constituent corporation, or is or was serving at the request of such
constituent corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, Indemnitee
shall stand in the same position under the provisions of this Agreement with
respect to the resulting or surviving corporation as Indemnitee would have with
respect to such constituent corporation if its separate existence had continued.

            (b) For purposes of this Agreement, references to "other
enterprises" shall include employee benefit plans; references to "fines" shall
include any excise taxes assessed on Indemnitee with respect to an employee
benefit plan; and references to "serving at the request of the Company" shall
include any service as a director, officer, employee or agent of the Company
which imposes duties on, or involves services by, such director, officer,
employee or agent with respect to an employee benefit plan, its participants, or
beneficiaries.

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<PAGE>
      12. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.

      13. Successors and Assigns. This Agreement shall be binding upon the
Company and its successors and assigns, and shall inure to the benefit of
Indemnitee and Indemnitee's estate, heirs, legal representatives and assigns.

      14. Arbitration . It is understood and agreed that the Company and
Indemnitee shall carry out this Agreement in the spirit of mutual cooperation
and good faith and that any differences, disputes or controversies shall be
resolved and settled amicably among the parties hereto. In the event that the
dispute, controversy or difference is not so settled in the above manner within
forty-five (45) days, then the matter shall be exclusively submitted to
arbitration in Santa Clara County, California before three independent
technically qualified arbitrators in accordance with the Commercial Arbitration
Rules of the American Arbitration Association and under the laws of Delaware,
without reference to conflict of laws principles. Subject to Sections 1(b) and
6, arbitration shall be the exclusive forum and the decision and award by the
arbitrator(s) shall be final and binding upon the parties concerned and may be
entered in any state court of California having jurisdiction.

      15. Attorneys' Fees. In the event that any action is instituted or claim
is submitted to arbitration by Indemnitee under this Agreement to enforce or
interpret any of the terms hereof, Indemnitee shall be entitled to be paid all
court costs and expenses, including reasonable attorneys' fees, incurred by
Indemnitee with respect to such action or arbitration, unless as a part of such
action, a court of competent jurisdiction or the arbitrator(s) determines that
each of the material assertions made by Indemnitee as a basis for such claim
were not made in good faith or were frivolous. In the event of an action
instituted or a claim submitted to arbitration by or in the name of the Company
under this Agreement or to enforce or interpret any of the terms of this
Agreement, Indemnitee shall be entitled to be paid all court costs and expenses,
including attorneys' fees, incurred by Indemnitee in defense of such action or
claim (including with respect to Indemnitee's counterclaims and cross-claims
made in such action or arbitration), unless as a part of such action the court
or the arbitrator(s) determines that each of Indemnitee's material defenses to
such action or claim were made in bad faith or were frivolous.

      16. Notice. All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed duly given (i) if
delivered by hand and receipted for by the party addressee, on the date of such
receipt, or (ii) if mailed by domestic certified or registered mail with postage
prepaid, on the third business day after the date postmarked. Addresses for
notice to either party are as shown on the signature page of this Agreement, or
as subsequently modified by written notice.

      17. Consent to Jurisdiction. The Company and Indemnitee each hereby
irrevocably consent to the jurisdiction of the courts of the State of California
for all purposes in connection with any proceeding which arises out of or
relates to this Agreement and agree that any action instituted under this
Agreement shall be brought only in the state courts of the State of California
in Santa Clara County and that any arbitration proceeding which arises out of or
relates to this Agreement shall be held in Santa Clara County, California.

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      18. Choice of Law. This Agreement shall be governed by and its provisions
construed in accordance with the laws of the State of Delaware as applied to
contracts between Delaware residents entered into and performed entirely within
Delaware.

      19. Subrogation. In the event of payment under this Agreement, the Company
shall be subrogated to the extent of such payment to all of the rights of
recovery of Indemnitee, who shall execute all documents required and shall do
all acts that may be necessary to secure such rights and to enable the
corporation effectively to bring suit to enforce such rights.

      20. Continuation of Indemnification. All agreements and obligations of the
Company contained herein shall continue during the period that Indemnitee is a
director, officer or agent of the Company and shall continue thereafter so long
as Indemnitee shall be subject to any possible claim or threatened, pending or
completed action, suit or proceeding, whether civil, criminal, arbitrational,
administrative or investigative, by reason of the fact that Indemnitee was
serving in the capacity referred to herein.

      21. Amendment and Termination. Subject to Section 20, no amendment,
modification, termination or cancellation of this Agreement shall be effective
unless in writing signed by both parties hereto.

      22. Integration and Entire Agreement. This Agreement (a) sets forth the
entire understanding between the parties, (b) supersedes all previous written or
oral negotiations, commitments, understandings and agreements relating to the
subject matter hereof and (c) merges all prior and contemporaneous discussions
between the parties.

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<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

                                          KOMAG, INC.

                                          By:____________________________

                                          Title:___________________________

                                          Address:  1710 Automation Parkway
                                          San Jose, California 95131

                                          AGREED TO AND ACCEPTED:

                                          INDEMNITEE:

                                          ------------------------------

                                          [NAME]

                                          Address:

                                          ------------------------------

                                          ------------------------------<PAGE>

                                  EXHIBIT 10.7

            NOTE SECURED BY STOCK PURSUANT TO STOCK PLEDGE AGREEMENT

$50,000                                                            June 18, 1997

FOR VALUE RECEIVED, Jack Regula (the "Maker") promises to pay to the order of
Sebring Systems, Inc., a New York corporation (the "Company"), the principal sum
of Fifty Thousand Dollars ($50,000) upon the terms and conditions specified
below.

      1.    Interest. Interest shall accrue on the unpaid balance outstanding
            from June 18, 1997 to maturity under this Note at the rate of six
            percent (6%) per annum. Interest shall be calculated on the basis of
            a 365-day year.

      2.    Due Date. The entire principal amount of Fifty Thousand Dollars
            ($50,000), plus all accrued but unpaid interest, shall become due
            and payable in one lump sum on June 18, 2004 or upon an event of
            acceleration, whichever first occurs.

      3.    Payment. Payment shall be made in lawful tender of the United States
            and shall be applied to the payment of principal and then interest.
            Prepayment of the principal and interest balance of this Note may be
            made in whole or in part at any time without penalty.

      4.    Events of Acceleration. The entire unpaid principal balance of this
            Note, plus all accrued but unpaid interest, shall become immediately
            due and payable, at the election of the holder of this Note, upon
            the occurrence of any of the following events:

                  a.    the insolvency of the Maker, the commission of any act
                        of bankruptcy by the Maker, the execution by the Maker
                        of a general assignment for the benefit of creditors,
                        the filing by or against the Maker of any petition in
                        bankruptcy or any petition for relief under the
                        provisions of the Federal bankruptcy act or any other
                        state or Federal law for the relief of debtors and the
                        continuation of such petition without dismissal for a
                        period of thirty (30) days or more, the appointment of a
                        receiver or trustee to take possession of any property
                        or assets of the Maker or the attachment of or execution
                        against any property or assets of the Maker; or

                  b.    the consummation of a firm commitment underwritten
                        public offering of the Company's Common Stock pursuant
                        to a registration statement filed under the Securities
                        Act of 1933, as amended; provided, however, that if the
                        Maker is subject to a lock-up restriction in connection
                        with the public offering and does not otherwise sell
                        stock in the public offering, such acceleration shall
                        not occur until ninety (90) business days after the end
                        of such lock-up period; or

                  c.    the occurrence of any event of default under the Stock
                        Pledge Agreement securing this Note or any obligation
                        secured thereby; or

                  d.    any sale for value of Common Stock by Maker to any third
                        party; or

                  e.    Maker ceases to be an employee of the Company, except
                        upon cessation due to death, disability or if Maker is
                        Terminated Without Cause as defined in the Restricted
                        Common Stock Purchase Agreement, dated June 18, 1997,
                        between the Company and the Maker (the "Restricted
                        Common Stock Purchase Agreement").

      5.    Security. The proceeds of the loan evidenced by this Note shall be
            applied solely to the payment of the purchase price for the five
            million (5,000,000) shares of the Company's Common Stock which the
            Maker has this day acquired pursuant to the Restricted Common Stock
            Purchase Agreement. Payment of this Note shall be secured by a
            pledge of the purchased shares in favor of the Company pursuant to
            the Stock Pledge Agreement executed this date by the Maker in favor
            of the Company (the "Stock Pledge Agreement"). The Maker shall not
            be personally liable for payment of this Note beyond the shares that
            collateralize the loan,
<PAGE>
            and the collateral under the Stock Pledge Agreement shall be the
            only assets of Maker that may be applied to the satisfaction of the
            Maker's obligations hereunder.

      6.    Collection. If action is instituted to collect this Note, the Maker
            promises to pay all costs and expenses (including reasonable
            attorney fees) incurred in connection with such action.

      7.    Waiver. A waiver of any term of this Note, the Stock Pledge
            Agreement or of any of the obligations secured thereby must be made
            in writing and signed by the Co mpany, and any such waiver shall be
            limited to its express terms. No delay by the Company in acting with
            respect to the terms of this Note or the Stock Pledge Agreement
            shall constitute a waiver of any breach, default, or failure of a
            condition under this Note, the Stock Pledge Agreement or the
            obligations secured thereby.

            The Maker waives presentment of this Note, demand for payment,
            notice of dishonor, notice of default or delinquency, notice of
            acceleration, notice of protest and nonpayment, notice of costs,
            expenses or losses and interest thereon, notice of interest on
            interest and diligence in taking any action to collect any sums
            owing under this Note or in proceeding against any of the rights or
            interests in or to properties securing payment of this Note.

      8.    Governing Law. This Note shall be construed in accordance with the
            laws of the State of California.

      9.    Severability. In the event that any of the provisions of this Note
            shall be held by a court or other tribunal of competent jurisdiction
            to be illegal, invalid or unenforceable, such provisions shall be
            limited or eliminated to the minimum extent necessary so that this
            Note shall otherwise remain in full force and effect.

IN WITNESS WHEREOF, the Maker has signed this Note Secured by Stock Pursuant to
Stock Pledge Agreement as of the date first written above.

                                            /s/  Jack Regula
                                            ------------------------------------
                                            JACK REGULA

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