BUSINESS LOAN AGREEMENT
This Agreement dated as of October 7, 1997, is between Bank of America National Trust and Savings
Association (the "Bank") and IMPCO Technologies, Inc. (the "Borrower").
1. FACILITY NO. 1: LINE OF CREDIT AMOUNT AND TERMS
1.1 LINE OF CREDIT AMOUNT.
(a) During the availability period described below, the Bank will provide a line of credit ("Facility No. 1") to the
Borrower. The amount of the line of credit (the "Facility No. 1 Commitment") is Twelve Million Dollars
(b) This is a revolving line of credit with a within line facility for letters of credit. During the availability period, the
Borrower may repay principal amounts and reborrow them.
(c) If at any time the outstanding principal balance of advances under the line of credit exceeds the Borrowing
Base, the Borrower will prepay the amount of the excess within ten (10) days of notice from the Bank.
"Borrowing base" means the lesser of Twelve Million Dollars ($12,000,000) or the sum of (i) 75% of the balance
due on the Borrower's accounts receivable excluding intercompany receivables and accounts receivable carried
in the books and records of any foreign subsidiary of Borrower, PLUS (ii) 20% of the book value of the
Borrower's inventory consisting of raw materials located in the United States, PLUS (iii) 40% of the book value
of the Borrower's inventory consisting of finished goods located in the United States, all as determined from the
Borrower's financial statements as of the last day of the immediately preceding fiscal quarter of the Borrower.
1.2 AVAILABILITY PERIOD. The line of credit is available between the date of this Agreement and August
31, 1999 (the "Expiration Date") unless the Borrower is in default.
1.3 INTEREST RATE.
(a) Unless the Borrower elects an optional
interest rate as described below, the interest rate is the Bank's Reference Rate.
(b) The Reference Rate is the rate of interest publicly announced from time to time by the Bank in San Francisco,