Document:

EXHIBIT 10.1

<PAGE>

                     ADDENDUM TO LOAN AND SECURITY AGREEMENT
                     ---------------------------------------
         THIS  ADDENDUM,  dated as of August 13, 1999,  by and between  COMPUTER
COMPONENTS CORPORATION, a Texas corporation (the "Borrower") which maintains its
chief  executive  office at 4300 Wiley Post Road,  Addison,  Texas,  75001,  and
FOOTHILL  CAPITAL  CORPORATION,  a California  corporation  (the "Lender") whose
mailing  address  is 7443 Lee  Davis  Road,  Suite  200,  Post  Office  Box 218,
Mechanicsville, Virginia 23111, provides:

         1.   Recitals:
              --------
              (a) The  Borrower  and the  Lender  have  entered  into a Loan and
Security  Agreement  (the "Loan  Agreement")  dated the date hereof  pursuant to
which the Lender,  subject to the terms of the Loan Agreement and this Addendum,
has  agreed  to make  loans to the  Borrower  up to a maximum  of  $3,000,000.00
secured by the Collateral described in the Loan Agreement.

              (b)  The Purpose of this Addendum is to amend the  Loan  Agreement
as set forth below.

         2.   Definitions. All capitalized words and terms used in this Addendum
              -----------
which are defined in the Loan Agreement shall have the meanings assigned to them
in the Loan Agreement unless otherwise  defined herein,  which meanings shall be
equally  applicable  to the singular and the plural forms of the words and terms
defined.

         3.   Amendments.  The Loan Agreement  is  amended  as set  forth in the
              ----------
following paragraphs.

              (a)   Section 1.7 is amended in the following respects:

                    (1)  Clause (xi) is amended to read as follows:

                         "(xi) the Account Debtor is not an officer, employee or
                         Affiliate of the Borrower."

                    (2)  Clause  (xii) is  amended by  inserting  the  following
parenthetical before the semicolon at the end thereof:

                         "(unless the  Receivables  of such  Account  Debtor are
                         insured by a company acceptable to the Lender or backed
                         by an acceptable irrevocable letter of credit confirmed
                         by a domestic bank)"

                    (3) The following new sentence is inserted immediately after
the penultimate sentence thereof:

                         "In addition,  the  Receivables of any Account  Debtor,
                         more  than 50% of which are aged more than 90 days from
                         invoice date, shall be ineligible, and if an individual
                         Receivable  of an  Account  Debtor  exceeds  10% of the
                         aggregate  Eligible   Receivables,   only  10%  of  the
                         Receivables  of that  Account  Debtor shall be eligible
                         without the prior written approval of the Lender."

                                       37

<PAGE>

              (b)   Section 2 is amended in the following respects:

                    (1) By inserting "provided, that an Inventory record keeping
system acceptable to the Lender must be in place before the Lender will make any
advances against Inventory" after the comma and before "and" in Section 2.1(b);

                    (2) By inserting "last day of the period" in place of "date"
in the last line of Section 2.2(g).

                    (3) By  inserting  "and the Unused Line Fee" after  "Service
Fee" in line 5 and  changing  "mailing" to "receipt" in the last line of Section
2.2(i).

                    (4)  By  adding the  following  as new  subsection U) at the
end of Section 2.2:

                             "(j) The  Borrower  shall pay the  Lender an unused
                         line fee equal to the  amount  set forth in  Schedule A
                         attached  hereto (the  "Unused  Line Fee").  The Unused
                         Line Fee shall be paid  monthly in arrears and shall be
                         calculated on the difference between the average amount
                         of Revolving  Loans  outstanding  during each  calendar
                         month and the  Revolving  Loans  Maximum  Principal set
                         forth in Schedule A."

                    (5) By inserting "for the account of the Lender, a letter of
credit  fee equal to the amount set forth on  Schedule  A attached  hereto  (the
"Letter of Credit Fee") and after "Lender" in the first line of Section 2.4(b).

              (c)   Section 4.1 is amended in the following respects:

                    (1)  By  deleting  the  first two sentences and substituting
the following therefor:

                             "The Borrower  hereby agrees to establish a lockbox
                         (the  "Lockbox") for the account of the Borrower with a
                         bank  acceptable  to the  Lender  and to  enter  into a
                         Lockbox Agreement for the deposit and processing of all
                         Payments on Receivables. The Borrower further agrees to
                         instruct  all  Account  Debtors  on  the  face  of  its
                         invoices to mail or deliver all such Payments  directly
                         to the Lockbox address."

                    (2) By deleting "Depository Account or the" and capitalizing
"Lockbox" in clause(i) in the third sentence and in the fourth  sentence of that
Section.

              (d)   Section 6 is amended in the following respects:

                    (1) By inserting  "certified  to be accurate and complete in
all material respects by the Borrower's President or chief financial officer" in
place of "prepared by the Borrower's chief financial officer" in paragraph(a) of
Section 6.3.

                    (2)  By adding the following new paragraph (f) at the end of
Section 6.3:
                                       38

<PAGE>

                             "(f)  Annually,  copies  of  the  Forms 1OQ and 10K
                         filed  by  Tech   Electro  Industries,  Inc.  with  the
                         Securities and Exchange Commission."

                    (3)  By  adding  the  following  new Sections 6.30, 6.31 and
6.32 at the end thereof:

                         "6.30 Report at the end of each calendar quarter, based
                         on  year-to-date  results,  earnings  before  interest,
                         taxes,  depreciation and amortization ("EBITDA") of not
                         less  than 80% of EBITDA  set  forth in the  Borrower's
                         projections furnished to the Lender."

                         "6.31  Report  at the end of each  calendar  quarter  a
                         tangible net worth of not less than $1,700,000.00.  For
                         purposes of this covenant "tangible net worth" means at
                         any date the net worth minus goodwill and other similar
                         intangible   assets  of  the  Borrower   determined  in
                         accordance   with   generally    accepted    accounting
                         principles at such date."

                         "6.32 Maintain at all times excess  availability  under
                         the Revolving  Loans of $400,000.00."

              (e)   Section 7.4 is amended by changing the period to a comma and
inserting  the  following at the end thereof:

                         "and  provided  further  that,  so long as no  Event of
                         Default exists,the Borrower may make cash distributions
                         or  loans  to  Tech  Electro  Industries,  Inc.  in  an
                         aggregate amount not to exceed $350,000.00 annually."

               (f)  Section   7.7  is  amended  by   inserting   the   following
parenthetical after "trade name" in line one:

                          "(other  than Universal Battery Corporation and Dunbar
                          Associates, Inc.)."

               (g)  Section 8.1 is amended as follows:

                    (1)   By  adding  the  following  after  the word "executed"
in paragraph (b):

                          "and  the  executed  Addendum  to  Loan  and  Security
                          Agreement, dated the date of this Agreement."

                    (2)   By  adding  the  following  new  paragraph  at the end
thereof:

                             (y) As of the  closing,  the  Borrower  shall  have
                          excess  availability  under  the  Revolving  Loans  of
                          $400,000.00  after  taking into account (i) payment of
                          any   outstanding   Texas   Central   Bank  loans  and
                          overdrafts,   all  loans   secured  by  liens  on  the
                          Borrower's  Collateral  and all accounts  payable more
                          than 60 days past due and (ii) all  closing  costs and
                          fees."
                                       39

<PAGE>

               (h) Section 9 is amended by deleting "dies," after  "Obligations"
in line two of Section 9.1(j).

         4.  Expenses.  The Borrower  agrees to pay,  upon demand,  all expenses
             --------
(including  attorneys'  fees,  filing fees and costs)  incurred by the Lender in
connection with the preparation of this Addendum and the other closing documents
and  instruments  contemplated  hereby,  and  the  closing  of the  transactions
hereunder.

         5.  Incorporation  by Reference,  Merger and  Ratification.  All of the
             ------------------------------------------------------
terms and  provisions  of the Loan  Agreement  are  incorporated  herein by this
reference  and are  binding on the  parties  hereto to the same extent as if set
forth in full  herein.  To the extent  that any  provision  of this  Addendum is
materially  different  from or  inconsistent  with  any  provision  of the  Loan
Agreement,  the provision of this Addendum shall control.  This Addendum and the
Loan  Agreement,  together with all  schedules and exhibits  hereto and thereto,
shall constitute and be construed as a single agreement and instrument.

         6. Modification;  Benefit.  No provision of this Addendum including the
            ----------------------
provisions  of this  section may be  modified,  deleted or amended in any manner
except by agreement in writing executed by the parties hereto. All terms of this
Addendum  shall be binding upon,  inure to the benefit of and be  enforceable by
the parties hereto and their respective successors and assigns.

         7.  Construction.  This Addendum is executed and delivered in Richmond,
             ------------
Virginia, and shall be construed and enforced in accordance with the laws of the
Commonwealth  of Virginia  without regard to its rules with respect to conflicts
of laws.  All  references  in this  Addendum to the  singular  number and neuter
gender shall be deemed to mean and include the plural number and all genders and
vice-versa, unless the context shall otherwise require.

         8.  Counterparts.  This  Addendum  may be  executed  in more  than  one
             ------------
counterpart, each of which shall be deemed an original.

         The Borrower  and the Lender have each caused this  Addendum to be duly
executed and delivered by its proper and duly  authorized  officer as of the day
and year first above written.

                                        COMPUTER COMPONENTS CORPORATION

                                        By: /s/ David L. Arnold
                                        ---------------------------

                                        Its: President

                                        FOOTHILL CAPITAL CORPORATION

                                         By: /s/ Jill White
                                         ---------------------------
                                         Its: Vice President

                                       40EXHIBIT 10.2

<PAGE>

                                    GUARANTY
                                    --------
This  Guaranty  is made as of this  5th day of  August,  1999,  by Tech  Electro
Industries, inc. (the "Guarantor") in favor of Foothill Capital Corporation (the
"Lender")  pursuant  to,  and in order to  induce  Lender  to  extend  credit to
Computer Components Corporation (the "Borrower"),  pursuant to that certain Loan
and  Security  Agreement  of even  date  herewith  between  the  Lender  and the
Borrower, as the same has been or may hereafter be amended, modified,  extended.
renewed,  supplemented  or  replaced  from time to time (the "Loan  Agreement"),
which  shall be fair and  sufficient  consideration  for the  execution  of this
Guaranty.

           Section 1. Definitions.   All   capitalized   words  and  terms  used
                      -----------
herein shall have the  meanings  assigned to them in the Loan  Agreement  unless
otherwise defined herein.

            Section 2. Guaranty.
                       --------
                  (a) To induce  the  Lender to  extend  credit to the  Borrower
pursuant  to  the  Loan  Agreement,   the  Guarantor   hereby   irrevocably  and
unconditionally  guarantees to the Lender,  its  successors  and assigns (i) the
full and prompt payment when due,  whether by  acceleration  or otherwise,  with
such interest as may accrue thereon either before or after maturity thereof,  of
all of the  Obligations,  including,  without  limitation,  the Revolving Loans,
together  with  all  renewals,  modifications,  consolidations,  and  extensions
thereof  (ii)  the  full  and  prompt  payment  and  performance  of all  terms,
conditions and covenants  contained in the Loan Agreement and (iii) the full and
prompt  performance  of any and all other  obligations of the Borrower under any
other  documents  or  instruments  referred to in the Loan  Agreement  or now or
hereafter evidencing,  securing, or otherwise relating to the Obligations or the
Loan  Documents.  The Guarantor  hereby agrees that if any of the Obligations or
other monetary obligations, duties and covenants are not paid by the Borrower in
accordance with their  respective  terms or if any and all sums which are now or
may  hereafter  become due from the  Borrower to the Lender under or pursuant to
any of the  Obligations  or the Loan  Documents  are not paid by the Borrower in
accordance with their terms,  the Guarantor will immediately make such payments.
The Guarantor  hereby further  agrees to pay the Lender all reasonable  expenses
(including, without limitation, reasonable attorneys' fees and court costs) paid
or  incurred  by the  Lender in  endeavoring  (x) to  collect  any  indebtedness
evidenced  by any of the  Obligations  or the  Loan  Documents,  or any  portion
thereof (y) to enforce any of the Obligations of the Borrower guaranteed hereby,
or (z) to enforce this Guaranty. This Guaranty shall be a continuing Guaranty of
all the  Obligations and all of the other  obligations,  duties and covenants of
the Borrower created  pursuant to any and all of the Loan Documents,  including,
without  limitation,  any and all advances,  debts,  obligations,  covenants and
liabilities  heretofore,  now or hereafter  made,  incurred or created under and
pursuant to any of the Loan Documents whether voluntary or involuntary, absolute
or  contingent,  liquidated or  unliquidated,  determined or  undetermined,  and
whether recovery upon such obligations, duties and covenants may be or hereafter
become unenforceable.

                  (b) As an additional inducement to the Lender to extend credit
to the  Borrower,  the  Guarantor,  if a  stockholder  of the  Borrower,  hereby
covenants and agrees not to transfer, assign, sell, convey or otherwise dispose

                                       42
<PAGE>

of,  grant  any  option,  warrant  or  other  right  with  respect  to,  pledge,
hypothecate  or otherwise  encumber any of the capital stock of the Borrower now
or hereafter  owned by the Guarantor  without the prior  written  consent of the
Lender, which consent will not be unreasonably withheld.

           Section 3. Guaranty Unconditional. The obligations of  the  Guarantor
                      -----------------------
hereunder  are  irrevocable,  absolute and  unconditional,  irrespective  of the
value,  genuineness,  validity,  regularity  or  enforceability  of  any  of the
Obligations  or any term or provision of any of the Loan  Documents or any other
document  relating  to  the  Obligations  or the  Loan  Documents  or any  other
circumstance which might otherwise  constitute a legal or equitable discharge or
defense of a surety or guarantor.

           Section 4. Subordination and Waiver of Subrogation.
                      ---------------------------------------
                  (a) The Guarantor hereby  subordinates all indebtedness of the
Borrower to the  Guarantor,  whether  now  existing or  hereafter  arising  (the
"Subordinated indebtedness"), to the full and prompt payment of the Obligations.
Any  amounts  received  by  the  Guarantor  as a  payment  on  the  Subordinated
Indebtedness, other than payments on Subordinated indebtedness permitted under a
subordination  agreement  approved by the Lender,  shall be retained and held in
trust by the Guarantor for the benefit of the Lender.

                  (b) Until such time as the Obligations have been  indefeasibly
paid in full, in cash,  the  Guarantor  shall not be subrogated to any rights of
the Lender  against the  Borrower or any security  for the  Obligations  and the
Guarantor  shall  not be  entitled  to  exercise  any  right  of  reimbursement,
contribution or indemnification against the Borrower or any other Guarantor.

           Section 5. Representations and Warranties.  The Guarantor  represents
                      ------------------------------
and warrants to the Lender that:

                  (a) The Guarantor is a  corporation  duly  organized,  validly
existing and in good standing under the laws of Texas.

                  (b) The execution,  delivery and  performance of this Guaranty
are  within  the  corporate  authority  of the  Guarantor  and  have  been  duly
authorized by all proper and necessary corporate action.

                  (c) This Guaranty  constitutes  the valid and legally  binding
obligation of the Guarantor enforceable against the Guarantor in accordance with
its terms,  except as  enforceability  may be limited by applicable  bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of  creditors'  rights  generally and by general  principles of equity  (whether
enforcement is sought by proceedings in equity or at law).

                  (d)  The  making  and  performance  by the  Guarantor  of this
Guaranty does not and will not (i) contravene  any existing  provision of law or
regulation  or  any  order,   decree,   writ  or  injunction  of  any  court  or
administrative  body or (ii)  result in a breach of or  constitute  a default or
require any consent under any contractual  restriction  binding on the Guarantor
or on any of the Guarantor's properties.

                                       43
<PAGE>

                  (e) The Guarantor  will receive  substantial  benefit from the
extensions of credit to the Borrower pursuant to the Loan Documents.

                  (f) No consents,  approvals, licenses or authorizations of, or
filing or  registrations  with,  any  governmental  authority are required under
applicable  federal or state law for the making and performance by the Guarantor
of this Guaranty.

                  (g) There is no action,  suit  investigation  or proceeding in
any  court  or  before  any   arbitrator   or  regulatory   commission,   board,
administrative  agency  or  other  governmental  authority  pending  or,  to the
knowledge of the Guarantor,  threatened  which,  if determined  adversely to the
Guarantor,  would  materially and adversely  affect his assets and properties or
the Guarantor's ability to perform the Guarantor's  obligations  hereunder.  The
Guarantor has provided the Lender with information relating to all litigation in
which the Guarantor is a party, none of which the Guarantor deems likely to have
a material and adverse affect upon the Guarantor's assets and properties.

                  (h) Except as  previously  disclosed to the Lender in writing,
the  Guarantor is not in default in the payment of the  principal of or interest
on  any  indebtedness  for  borrowed  money  and is not  in  default  under  any
instrument under and subject to which any indebtedness has been incurred and, to
the knowledge of the  Guarantor,  no event has occurred and is continuing  under
the provisions of any such agreement  which with the lapse of time or the giving
of notice,  or both,  would  constitute  an event of default  thereunder,  which
default would have a material  adverse  effect on the  Guarantor's  assets,  the
validity  of the  Guaranty  or the  ability  of the  Guarantor  to  perform  the
Guarantor's obligations hereunder.

                  (i) The  Guarantor  is not  insolvent  (as  defined in Section
101(31)  of the  United  States  Bankruptcy  Code),  unable to pay debts as they
mature or engaged in business with unreasonably small capital; the Guarantor has
filed all federal, state, local and foreign tax returns which are required to be
filed by the Guarantor, and the Guarantor has paid all federal, State, local and
foreign  taxes shown to be due on such tax  returns or which have been  assessed
against the  Guarantor;  the Guarantor is not or has not been the subject of any
bankruptcy,  reorganization,  insolvency,  readjustment  of  debt,  trusteeship,
receivership, dissolution or liquidation law, statute or proceeding.

           Section 6. Consents.  The  Guarantor  hereby consents and agrees that
                      --------
any or all of the following  actions may be taken or things done without  notice
to the Guarantor and without  affecting,  diminishing or releasing the liability
of the Guarantor under this Guaranty:

                  (a) The time for the  Borrower's  performance of or compliance
with any of the  Obligations  or any  other  obligations,  duties  or  covenants
created  under or  pursuant  to any of the Loan  Documents  may be  accelerated,
renewed, modified, released or extended or such performance or compliance may be
waived by the Lender, including,  without limitation, the time of payment of the
Obligations.

                  (b) The rate of  interest  under the Loan  Agreement  or other
evidence of indebtedness may be increased or decreased.

                                       44

<PAGE>

                  (c) Any of the acts referred to in any documents,  instruments
or certificates  evidencing or securing the Obligations or referred to in any of
the Loan  Documents may be performed,  in  accordance  with their terms,  by the
Borrower or any other party for and or on behalf of the Borrower.

                  (d) As  described  therein or herein,  the terms of any of the
documents,  instruments  or  certificates  evidencing  or  securing  any  of the
Obligations  or the terms of the Loan  Documents  may be  modified,  extended or
renewed  for any period for the  purpose  of adding  any  provisions  thereto or
changing in any manner the rights of the Lender or of the Borrower thereunder.

                  (e) The Lender may grant releases, compromises and indulgences
with  respect  to any of the  Obligations  or any of the Loan  Documents  to any
persons or entities now or hereafter liable thereunder or hereunder.

                  (f) The Lender may release any guarantor or endorser of any of
the  Obligations,  the Loan Documents or any other covenant,  obligation or duty
guaranteed hereby or referred to herein.

                  (g) The Lender may take or fail to take any action of any type
whatsoever without releasing the Guarantor's  obligations hereunder or affecting
this Guaranty in any way or affording  the  Guarantor  any recourse  against the
Lender.

                  (h) Any property  constituting  security of any kind or nature
whatsoever now or hereafter held by the Lender or by any person,  firm,  trustee
or corporation on the Lender's behalf, or for its account, may be surrendered or
exchanged or  substituted  for  collateral  of like kind or of any kind, or such
property or security may be  otherwise  dealt with,  and the  Lender's  interest
thereunder may be released or remain in effect,  all as the Lender,  in its sole
discretion, may deem desirable.

                  (i) The Lender may resort to the  Guarantor  for  payment  and
performance  of any of the  Obligations  or any of the  obligations,  duties and
covenants created under and pursuant to any of the Loan Documents whether or not
the Lender shall have resorted to any property now or hereafter  securing any of
the undertakings  thereunder or any other party primarily or secondarily  liable
on any of the  Obligations  or any  of the  obligations,  duties  and  covenants
created under and pursuant to any of the Loan Documents.

         Section 7. Credit Information. The Guarantor assumes the responsibility
                    ------------------
for being  and  keeping  himself  informed  of the  financial  condition  of the
Borrower and of all other circumstances bearing upon the risk of non-payment and
non-performance of the Obligations and of any obligations,  duties and covenants
created under and pursuant to any of the Loan  Documents;  and, the Lender shall
have no duty  to  advise  the  Guarantor  of  information  known  to the  Lender
regarding such condition or any such circumstances.

         Section 8. Tolling of Statute of Limitations. The Guarantor agrees that
                    ---------------------------------
payment or  performance  of any of the  Obligations or other acts which toll any
statute  of  limitations  applicable  to the  Obligations  or to any of the Loan
Documents shall also toll the statute of limitations applicable to the liability
of the Guarantor under this Guaranty.

                                       45

<PAGE>

         Section 9.  Waivers. The Guarantor unconditionally waives:
                     -------
                (a)  diligence, presentment, demand for payment, protest, notice
of dishonor and notice of default;

                (b) the  benefit  of any act or  omission  by the  Lender  which
directly or  indirectly  results in or aids the discharge of the Borrower or the
Borrower's payment and performance of the Obligations or any of the obligations,
duties and covenants  created under or pursuant to any of the Loan  Documents by
operation of law or otherwise;

                (c) notice of  acceptance  of this Guaranty and the incurring of
the Obligations,  or any of the obligations,  duties and covenants created under
or pursuant to any of the Loan Documents;

                (d)  the  provisions  of  Section 49-25 and 49-26 of the Code of
Virginia of 1950, as amended;

                (e) any defense that may arise by reason of lack of authority of
the Guarantor of the incapacity or lack of authority, death or disability of any
other  person or entity or the  failure of the Lender to file or enforce a claim
against the estate (in  bankruptcy or other  proceeding)  of the  Borrower,  the
Guarantor or any other person or entity;

                (f) any  defense  based on the  failure  of the  Lender  to give
notice  of  the  existence,  creation  or  incurring  of any  new or  additional
indebtedness  or obligation or any action or non-action on the part of any other
person whatsoever in connection with any of the obligations hereby guaranteed;

                (g)  any  duty  on the part of the  Lender  to  disclose  to the
Guarantor  any facts the Lender  may now or  hereafter  know with  regard to the
Borrower;

                (h)  any  defense  based on lack of due  diligence by the Lender
in  collection,  protection  or  realization  upon any  Collateral  securing the
Obligations; and

                (i)  any  and  all   rights   of   subrogation,   reimbursement,
contribution, indemnification, exoneration and all other rights and claims which
the  Guarantor may now or hereafter  have against the  Borrower,  or against any
other person directly or indirectly, contingently or noncontingently, liable for
or obligated upon any of the Obligations  ("Other Obligated Party"),  arising on
account of this  Guaranty or any sums paid by the  Guarantor or collected by the
Lender pursuant to this Guaranty. In furtherance,  and not in limitation, of the
preceding  waiver,  the Guarantor  agrees that any sums paid by the Guarantor or
collected by the Lender pursuant to this Guaranty shall be deemed a contribution
to the capital of the Borrower or Other Obligated Party, as the case may be, and
shall not  constitute  the  Guarantor a creditor  of the  Borrower or such Other
Obligated Party.

         Section 10. Certain Rights, Remedies, Etc.
                     ------------------------------
                (a)  In  the event of any demand or default on this  Guaranty or
the Obligations: (1) all Obligations shall become due and payable, together with
interest  accrued to the date of payment,  without notice,  at the option of the

                                       46

<PAGE>

Lender; (2) the Guarantor shall reimburse the Lender for any expenses, costs and
attorneys'  fees which the Lender may incur in connection with the collection of
any monies due under this Guaranty or in connection  with the enforcement of any
right under this Guaranty.

                (b) In  pursuing  its rights  under and  pursuant  to any of the
Obligations or any of the  obligations,  duties and covenants  created under and
pursuant to the Loan Documents or under this Guaranty,  the Lender need not join
the Guarantor in any suit against the Borrower  under the Loan Documents or join
the Borrower in any suit against the Guarantor  hereunder.  The Guarantor hereby
waives any right to require  the  Lender to give  notice of the terms,  time and
place of any public or private sale of any Collateral now or hereafter  securing
the Obligations or obligations,  duties and covenants created under and pursuant
to the Loan Documents or to comply with any other  provision of Section 9-504 of
the Uniform Commercial Code as enacted by the Commonwealth of Virginia.

                (c) The books and  records of the Lender  showing  the  accounts
between  the Lender and the  Borrower  shall be  admissible  in  evidence in any
action  or  proceeding  thereon  as prima  facie  proof of the  items  set forth
therein.

         Section 11. No  Set-Off.  No act or omission of any kind or at any time
                     -----------
on the part of the Lender in respect to any matter  whatsoever  shall in any way
affect or impair the rights of the Lender to enforce any right, power or benefit
under this  Guaranty  and no set-off,  claim,  reduction  or  diminution  of any
obligation  or any defense of any kind or nature which the  Guarantor has or may
have  against the Lender  shall be  available  against the Lender in any suit or
action brought by the Lender to enforce any right,  power of benefit provided by
this  Guaranty,  provided that nothing herein shall prevent the assertion by the
Guarantor of any such claim by separate  suit or  counterclaim.  Nothing in this
Guaranty shall be construed as a waiver by the Guarantor of any rights or claims
which the Guarantor may have against the Lender hereunder or otherwise,  but any
recovery upon such rights and claims shall be had from the Lender separately, it
being the intent of this Guaranty that the  Guarantor  shall be  unconditionally
and  absolutely  obligated  to perform  fully all the  Guarantor's  obligations,
covenants and agreements hereunder for the benefit of the Lender.

         Section 12. Notices. All notices,  demands,  requests for modification,
                     -------
consents or approvals  under this  Guaranty  shall be given in  accordance  with
Section 16.1 of the Loan Agreement, to the Guarantor at the address specified on
the signature page hereof.

         Section 13. Reinstatement.  The  liability of the  Guarantor  hereunder
                     -------------
shall be reinstated  and revived and the rights of the Lender shall  continue if
and to the  extent  that for any  reason  any  payment  by or on  behalf  of the
Borrower or the  Guarantor is  rescinded  or must be  otherwise  restored by the
Lender,  whether as a result of any proceedings in bankruptcy or  reorganization
or otherwise, and all decisions as to whether any such payment must be rescinded
or  restored  shall be made in good faith by the Lender in its sole  discretion;
provided,  however, that if the Lender chooses to contest any such matter at the
request of the Guarantor. the Guarantor agrees to indemnify, defend and hold the
Lender  harmless  with  respect  to all costs  (including,  without  limitation,
attorneys' fees) of such litigation.

                                       47

<PAGE>

         Section 14. No Waiver;  Amendments,  Etc. No failure on the part of the
                     ----------------------------
Lender to exercise, no delay in exercising and no course of dealing with respect
to, any right hereunder shall operate as a waiver thereof;  nor shall any single
or  partial  exercise  of any right  hereunder  preclude  any  other or  further
exercise  thereof  or the  exercise  of any other  right.  The  remedies  herein
provided are cumulative and not exclusive of any remedies  provided by law. This
Guaranty  may not be amended or  modified  except by  written  agreement  of the
Guarantor  and the Lender and no consent or waiver  hereunder  shall be valid as
against the Lender unless in writing and signed by the Lender.

         Section 15. insolvency.  The   voluntary  or  involuntary  liquidation,
                     ----------
dissolution,  sale or other  disposition of all or substantially  all the assets
and liabilities, the receivership,  insolvency,  bankruptcy,  assignment for the
benefit of creditors, reorganization, or other proceeding affecting the Borrower
or the  disaffirmance  of the  Obligations or any  obligation,  duty or covenant
created  pursuant to any of the Loan Documents in any such proceeding  shall not
release or discharge the Guarantor from this Guaranty.

         Section 16. Jurisdiction, Venue and Waiver of Jury Trial.
                     --------------------------------------------
                 (a) The  forum  having  the  proper  jurisdiction  and venue to
adjudicate  any claim,  dispute or default  which may arise out of the execution
and delivery of this Guaranty and the performance of the Guarantor's obligations
hereunder shall be the Circuit Court of the City of Richmond,  Virginia, and the
proper appellate  courts of the  Commonwealth of Virginia,  or the United States
District Court of the Eastern District of Virginia,  Richmond Division,  and the
proper  appellate  courts of the  United  States,  unless the Lender in its sole
discretion  chooses  to bring  suit on its own  behalf  in some  other  court of
competent  jurisdiction.  The Guarantor  expressly  submits and consents to such
jurisdiction and venue and specifically waives any and all rights it may have to
contest  the  jurisdiction  and/or  venue of the above  mentioned  forums and to
demand any other forums.  The Guarantor  waives personal  service of any and all
legal process upon him and consents and agrees that all such service may be made
by  Registered  Mail  directed to the  Guarantor  at the address for notices set
forth at the end of this  Agreement,  and  service so made shall be deemed to be
completed on the date the return receipt therefor is signed.

                 (b) TO THE FULLEST  EXTENT  PERMITTED BY  APPLICABLE  LAW, EACH
GUARANTOR  WAIVES  ALL  RIGHT TO A TRIAL BY JURY IN ANY  ACTION,  PROCEEDING  OR
COUNTERCLAIM  ON ANY MATTER  ARISING OUT OF THIS  GUARANTY  AND THE  GUARANTOR'S
OBLIGATIONS HEREUNDER.

                     THIS WAIVER IS  KNOWINGLY,  WILLINGLY AND VOLUNTARILY  MADE
BY THE GUARANTOR, AND THE GUARANTOR HEREBY REPRESENTS THAT NO REPRESENTATIONS OF
FACT OR OPINION HAVE BEEN MADE BY ANY  INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL
BY JURY OR IN ANY WAY  MODIFY OR  NULLIFY  ITS  EFFECT.  THE  GUARANTOR  FURTHER
REPRESENTS THAT IT HAS BEEN  REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN
THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE
WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

         Section 17. Entire  Agreement.  This  Guaranty  constitutes  the entire
                     -----------------
agreement of the Lender and the Guarantor,  and supersedes all prior  agreements
and understandings,  both written and oral, between the Guarantor and the Lender
with respect to the subject matter hereof.
                                       48
<PAGE>
         Section 18. Severability.  The  invalidity or  unenforceability  of any
                     ------------
phrase,  sentence,  clause or  section  in this  Guaranty  shall not  affect the
validity or  enforceability of the remaining  portions of this Guaranty,  or any
hereof.

         Section 19. Construction. This Guaranty shall be construed and enforced
                     ------------
in accordance with the laws of the  Commonwealth  of Virginia  without regard to
its rules with respect to choice of law. All  references in this Guaranty to the
singular number and neuter gender shall be deemed to mean and include the plural
number and all  genders,  and vice  versa,  unless the context  shall  otherwise
require.

         The  Guarantor has caused this Guaranty to be executed and delivered by
its duly authorized representative as of the date first above written.

                                       TECH ELECTRONIC INDUSTRIES, INC.

                                        By: /s/ Steven E. Scott
                                            ---------------------------
                                            Its: Executive Vice President

                                        By: /s/ Ian C. Edmonds
                                            ---------------------------
                                            Its: Vice President

                                        Address for Notice:
                                        ------------------
                                        477 Madison Avenue
                                        24th Floor
                                        New York, New York 10022

STATE OF NEW YORK

COUNTY OF SUFFOLK

         On this 17th day of August,  1999, before me, the undersigned  officer,
personally  appeared Steven Scott, known to me (or satisfactorily  proven) to be
the  instrument  and  acknowledged  that he executed  the same for the  purposes
therein contained.

         In Witness Whereof, I hereunder set my hand and official seal.

                                               /s/ Donna-Marie Curcio
                                               ------------------------
                                               Notary Public

My Commission Expires: 09/29/99

                                       49

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]