THIS LOAN AGREEMENT between AMERICAN XTAL TECHNOLOGY ("Borrower") and U.S. BANK
NATIONAL ASSOCIATION ("Lender") is made and executed on the following terms and conditions.
Borrower has received prior commercial loans from Lender or has applied to Lender for a commercial loan or
loans and other financial accommodations, including those which may be described on any exhibit or schedule
attached to this Agreement. All such loans and financial accommodations, together with all future loans and
financial accommodations from Lender to Borrower, are referred to in this Agreement individually as the "Loan"
and collectively as the "Loans." Borrower understands and agrees that: (a) in granting, renewing, or extending any
Loan, Lender is relying upon Borrower's representations, warranties, and agreements, as set forth in this
Agreement; (b) the granting, renewing, or extending of any Loan by Lender at all times shall be subject to
Lender's sole judgment and discretion; and (c) all such Loans shall be and shall remain subject to the following
terms and conditions of this Agreement.
TERM. This Agreement shall be effective as of SEPTEMBER 18, 1998, and shall continue thereafter until all
Indebtedness of Borrower to Lender has been performed in full and the parties terminate this Agreement in
DEFINITIONS. The following words shall have the following meanings when used in this Agreement. Terms not
otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial
Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America.
Agreement. The word "Agreement" means this Loan Agreement, as this Loan Agreement may be amended or
modified from time to time, together with all exhibits and schedules attached to this Loan Agreement from time to
Account. The word "Account" means a trade account, account receivable, or other right to payment for goods
sold or services rendered ow