ROYALTY AGREEMENT

                                                                    EXHIBIT 10.1

                        [OPTICAL CABLE CORPORATION LOGO]

                                ROYALTY AGREEMENT

This  agreement  is made  effective  this first day of  November,  1993,  by and
between Xxxxxx  Xxxxxxxx and Optical Cable  Corporation  (herein  referred to as
OCC).

WHEREAS Xxxxxx Xxxxxxxx as an owner of the rights to certain cable manufacturing
techniques and equipment designs (hereinafter referred to as TECHNOLOGY) granted
him by Cable Technology, Inc., by agreement dated June 30, 1983.

WHEREAS Xxxxxx Xxxxxxxx  desires to receive  Royalty  Payments for the continued
use of the TECHNOLOGY by OCC.

WHEREAS it is in the best  interest of OCC to have the  exclusive  rights to the
use of the TECHNOLOGY without restriction.

Now THEREFORE the parties do hereby agree as follows:

1.       Xxxxxx Xxxxxxxx  hereby grants to OCC the exclusive  license to use the
         TECHNOLOGY without restriction for a period of one year.

2.       Xxxxxx  Xxxxxxxx  shall not  sell,  transfer  or  further  license  the
         TECHNOLOGY to any other parties for a period of one year.

3.       OCC agrees to pay Xxxxxx  Xxxxxxxx in Royalty  Payment equal to 4.5% of
         its  net  sales  under  the  license  granted  herein.   For  each  new
         manufacturing  facility  established  outside  the  continental  United
         States (utilizing the TECHNOLOGY), OCC agrees to pay Xxxxxx Xxxxxxxx an
         additional 1.5% Royalty Payment. Total Royalty Payment shall be limited
         to 10% of net sales  generated by OCC and future  affiliates  utilizing
         the TECHNOLOGY.

         Example

         Optical Cable Corporation                  Royalty (%)
         -------------------------                  -----------
         OCC + 1 additional overseas facilities         4.5
         OCC + 2 additional overseas facilities         6.0
         OCC + 3 additional overseas facilities         7.5
         OCC + 4 additional overseas facilities        10.0

Said Royalty Payments are to be made by the close of each OCC fiscal year.

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   Shipping Address:         Phone No.        (000) 000-0000            Mailing Address:
                             TELEX            705-290
0000 Xxxxxxxxx Xxxxx         FAX              (000) 000-0000            X.X. Xxx 00000
 Xxxxxxx, XX 00000           Sales Dept.      1-800-622-7711       Xxxxxxx, XX 00000-0000






/s/ Xxxxxx Xxxxxxxx                       /s/ Xxxxxx Xxxxxxxx
-------------------------                 --------------------------------------
Xxxxxx Xxxxxxxx                           Xxxxxx Xxxxxxxx
                                          Optical Cable Corporation




    [Notary Signature]                    /s/ Xxxxxxx X. Xxxxxx
------------------------                  --------------------------------------
Notary                                    Xxxxxxx X. Xxxxxx, Secretary/Treasurer
                                          Optical Cable Corporation