Exhibit 10.60

                             BUSINESS LOAN AGREEMENT
<TABLE>
<CAPTION>
<S>             <C>            <C>            <C>          <C>           <C>            <C>            <C>            <C>         
--------------- -------------- -------------- ------------ ------------- -------------- -------------- -------------- --------------
   Principal      Loan Date      Maturity       Loan No.       Call       Collateral       Account        Officer       Initials
  $137,500.00    05-01-1998     05-01-2003       bl13711        1E            10                            OLS
--------------- -------------- -------------- ------------ ------------- -------------- -------------- -------------- --------------
</TABLE>
Reference  in the  shaded  area are for  Lender's  use only and do not limit the
applicability of this document to any particular loan or item.
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S>                                                       <C>
Borrower:  Spurlock Adhesives, Inc. (TIN: 54-1522700)     Lender:  JAMES RIVER BANK
           P.O. Box 8                                              MAIN OFFICE
           Waverly, VA  23890                                      209 W MAIN STREET
                                                                   P. O. BOX 47
                                                                   WAVERLY, VA  23890-0047
</TABLE>
================================================================================

THIS BUSINESS LOAN AGREEMENT between Spurlock Adhesives,  Inc.  ("Borrower") and
JAMES  RIVER BANK  ("Lender')  is made 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 April 1, 1998, and shall continue
thereafter  until all  Indebtedness  of Borrower to Lender has been performed in
full and the parties terminate this Agreement in writing.

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 law money of the  United  States of
America.

      Agreement.  The word  "Agreement"  means this Business Loan Agreement,  as
      this Business Loan Agreement may be amended or modified from time to time,
      together  with all exhibits and  schedules  attached to this Business Loan
      Agreement from time to time.

      Borrower.  The word  "Borrower"  means  Spurlock  Adhesives,  Inc. and its
      successors and assigns. The word "Borrower" also includes,  as applicable,
      all  subsidiaries  and  affiliates  of Borrower  as provided  below in the
      paragraph titled "Subsidiaries and Affiliates."

      CERCLA. The word "CERCLA" means the Comprehensive  Environmental Response,
      Compensation, and liability Act of 1980, as amended.

      Cash  Flow.  The words  "Cash  Flow"  mean net  income  after  taxes,  and
      exclusive  of  extraordinary  gains  and  income,  plus  depreciation  are
      amortization.

      Collateral.  The word "Collateral"  means and includes without  limitation
      all property and assets granted as collateral security for a Loan, whether
      real or personal property, whether granted directly or indirectly, whether
      granted  now or in the  future,  and  whether  granted  in the  form  of a
      security interest,  mortgage, deed of trust,  assignment,  pledge, chattel
      mortgage, chattel trust, factor's lien, equipment trust, conditional sale,
      trust recent lien,  charge,  lien or title  retention  contract,  lease or
      consignment  intended as a security device,  or any other security or lien
      interest whatsoever, whether created by law, contract, or otherwise.

      Debt.  The word  "Debt"  means  all of  Borrower's  liabilities  excluding
      Subordinated Debt.

      ERISA. The word "ERISA" means the Employee  Retirement Income Security Act
      of 1974, as amended.

      Event of Default.  The words "Event of Default"  mean and include  without
      limitation  any of the Events of Default  set forth  below in the  section
      title, "EVENTS OF DEFAULT."

      Grantor. The word "Grantor" means and includes without limitation each and
      all  of  the  persons  or  entities  granting  a  Security  Interest  in a
      Collateral  for the  Indebtedness,  and  their  personal  representatives,
      successors and assigns.

      Guarantor. The word "Guarantor" means and includes without limitation each
      and all of the guarantors,  sureties, and accommodation parties connection
      with any Indebtedness and their personal  representatives,  successors and
      assigns.

      Indebtedness.   The  word   "Indebtedness"   means  and  includes  without
      limitation all Loans,  including all  principal,  interest and other fees,
      costs and  charges,  if any,  together  with all other  present and future
      liabilities  and  obligations of Borrower,  or any one or more of them, to
      Lender,  whether  direct or indirect,  matured or  unmatured,  and whether
      absolute or  contingent,  joint,  several,  or joint and  several,  and no
      matter how the same may be evidenced or shall arise.

      Lender.  The word  "Lender"  means JAMES RIVER BANK,  its  successors  and
      assigns.

      Liquid Assets. The words "Liquid Assets" mean Borrower's cash on hand plus
      Borrower's readily marketable securities.

      Loan. The word "Loan" or "Loans" means and includes without limitation any
      and all  commercial  loans and  financial  accommodations  from  Lender to
      Borrower,  whether  now or  hereafter  existing,  and  however  evidenced,
      including  without  limitation  those loans and  financial  accommodations
      described herein or described on any exhibit or schedule  attached to this
      Agreement from time to time.

      Note.  The word "Note" means and includes  without  limitation  Borrower's
      promissory note or notes, if any, evidencing Borrower's Loan obligation in
      favor of Lender,  as well as any  substitute,  replacement  or refinancing
      note or notes therefor.


<PAGE>

05-01-1998                     BUSINESS LOAN AGREEMENT                    Page 2
Loan No bl13711                     (Continued)

================================================================================

      Permitted Liens. The words "Permitted  Liens" mean: (a) liens and security
      interests securing  Indebtedness owed by Borrower to Lender; (b) liens for
      taxes,  assessments,  or  similar  charges  either  not yet  due or  being
      contested   in  good   faith;   (c)  liens  of   materialmen,   mechanics,
      warehousemen,  or  carriers,  or other like liens  arising in the ordinary
      course of business and securing  obligations which are not yet delinquent;
      (d) purchase money liens or purchase  money security  interests upon or in
      any  property  acquired  or held by  Borrower  in the  ordinary  course of
      business to secure indebtedness  outstanding on the date of this Agreement
      or permitted to be incurred under the paragraph of this  Agreement  titled
      "Indebtedness  and Liens";  (e) liens and security  interests which, as of
      the date of this  Agreement,  have been  disclosed  to and approved by the
      Lender in writing; and (f) those liens and security interests which in the
      aggregate constitute an immaterial and insignificant  monetary amount with
      respect to the net value of Borrower's assets.

      Related Documents.  The words "Related Documents" mean and include without
      limitation all  promissory  notes,  credit  agreements,  loan  agreements,
      environmental  agreements,  guaranties,  security  agreements,  mortgages,
      deeds of  trust,  and all other  instruments,  agreements  and  documents,
      whether  now or  hereafter  existing,  executed  in  connection  with  the
      Indebtedness.

      Security  Agreement.  The  words  "Security  Agreement"  mean and  include
      without  limitation  any  agreements,  promises,  covenants,  arrangement!
      understandings or other agreements,  whether created by law, contract,  or
      otherwise,  evidencing,  governing,  representing,  or creating a Security
      Interest.

      Security Interest.  The words "Security Interest" mean and include without
      limitation any and all types of liens and encumbrances, whether created by
      law, contract, or otherwise.

      SARA. The word "SARA" means the Superfund  Amendments and  Reauthorization
      Act of 1986 as now or hereafter amended.

      Subordinated  Debt. The words  "Subordinated  Debt" mean  indebtedness and
      liabilities of Borrower which have been  subordinated by written agreement
      to  indebtedness  owed  by  Borrower  to  Lender  in  form  and  substance
      acceptable to Lender.

      Tangible Net Worth.  The words "Tangible Net Worth" mean Borrower's  total
      assets  excluding  all  intangible  assets  (i.e.,  goodwill,  trademarks,
      patents,  copyrights,  organizational  expenses,  and  similar  intangible
      items,  but including  leaseholds and leasehold  improvements)  less total
      Debt.

      Working  Capital.  The words  "Working  Capital" mean  Borrower's  current
      assets, excluding prepaid expenses, less Borrower's current liabilities.

CONDITIONS  PRECEDENT TO EACH ADVANCE.  Lender's  obligation to make the initial
Loan Advance and each  subsequent  Loan Advance  under this  Agreement  shall be
subject to the fulfillment to Lender's satisfaction of all of the conditions set
forth in this Agreement and in the Related Documents.

      Loan Documents.  Borrower shall provide to Lender in form  satisfactory to
      Lender the following  documents for the Loan:  (a) the Note,  (b) Security
      Agreements  granting to Lender security  interests in the Collateral,  (c)
      Financing Statements perfecting Lender's Security Interests;  (d) evidence
      of insurance as required below; and (e) any other documents required under
      this Agreement or by Lender or its counsel.

      Borrower's  Authorization.  Borrower  shall  have  provided  in  form  and
      substance  satisfactory to Lender  properly  certified  resolutions,  duly
      authorizing the execution and delivery of this Agreement, the Note and the
      Related Documents,  and such other  authorizations and other documents and
      instruments  as Lender  or its  counsel,  in their  sole  discretion,  may
      require.

      Payment of Fees and Expenses. Borrower shall have paid to Lender all fees,
      charges, and other expenses which are then due and payable as specified in
      this Agreement or any Related Document.

      Representations  and Warranties.  The  representations  and warranties set
      forth in this Agreement, in the Related Documents,  and in any document or
      certificate delivered to Lender under this Agreement are true and correct.

      No Event of  Default.  There  shall not exist at the time of any advance a
      condition which would constitute an Event of Default under this Agreement.

REPRESENTATIONS  AND WARRANTIES.  Borrower represents and warrants to Lender, as
of the  date of this  Agreement,  as of the  date of each  disbursement  of Loan
proceeds, as of the date of any renewal,  extension or modification of any Loan,
and at all times any Indebtedness exists:

      Organization.  Borrower is a corporation which is duly organized,  validly
      existing,  and in good  standing  under  the laws of the  Commonwealth  of
      Virginia  and is validly  existing  and in good  standing in all states in
      which  Borrower  is  doing  business.  Borrower  has the  full  power  and
      authority to own its properties and to transact the businesses in which it
      is presently  engaged or presently  proposes to engage.  Borrower  also is
      duly  qualified as a foreign  corporation  and is in good  standing in all
      states in which the  failure to so quality  would have a material  adverse
      effect on its businesses or financial condition.

      Authorization.  The execution, delivery, and performance of this Agreement
      and all  Related  Documents  by  Borrower,  to the extent to be  executed,
      delivered  or  performed by  Borrower,  have been duly  authorized  by all
      necessary  action by  Borrower;  do not require the consent or approval of
      any other person,  regulatory  authority or governmental  body; and do not
      conflict with, result in a violation of, or constitute a default under (a)
      any provision of its articles of incorporation or organization, or bylaws,
      or any agreement or other instrument binding upon Borrower or (b) any law,
      governmental regulation, court decree, or order applicable to Borrower.

      Financial  Information.  Each financial  statement of Borrower supplied to
      Lender truly and completely disclosed Borrower's financial condition as of
      the date of the statement,  and there has been no material  adverse change
      in  Borrower's  financial  condition  subsequent  to the  date of the most
      recent financial  statement  supplied to Lender.  Borrower has no material
      contingent obligations except as disclosed in such financial statements.

<PAGE>

05-01-1998                     BUSINESS LOAN AGREEMENT                    Page 3
Loan No bl13711                     (Continued)

================================================================================

      Legal Effect. This Agreement constitutes,  and any instrument or agreement
      required hereunder to be given by Borrower when delivered will constitute,
      legal,  valid and  binding  obligations  of Borrower  enforceable  against
      Borrower in accordance with their respective terms.

      Properties.  Except as  contemplated  by this  Agreement or as  previously
      disclosed in Borrower's  financial  statements or in writing to Lender and
      as accepted  by Lender,  and except for  property  tax liens for taxes not
      presently  due and  payable,  Borrower  owns and has good  title to all of
      Borrower's  properties free and clear of all Security  Interests,  and has
      not executed any security  documents or financing  statements  relating to
      such  properties.  All of Borrower's  properties  are titled in Borrower's
      legal name,  and  Borrower  has not used,  or filed a financing  statement
      under, any other name for at least the last five (5) years.

      Hazardous Substances.  The terms "hazardous waste," "hazardous substance,"
      "disposal,"   "release,"  and  "threatened   release,"  as  used  in  this
      Agreement,  shall  have the same  meanings  as set forth in the  "CERCLA,"
      "SARA," the  Hazardous  Materials  Transportation  Act, 49 U.S.C.  Section
      1801,  et seq.,  the Resource  Conservation  and  Recovery  Act, 42 U.S.C.
      Section 6901, et seq., or other applicable  state or Federal laws,  rules,
      or  regulations  adopted  pursuant  to  any of the  foregoing.  Except  as
      disclosed to and  acknowledged by Lender in writing,  Borrower  represents
      and warrants  that:  (a) During the period of Borrower's  ownership of the
      properties,  there  has  been no use,  generation,  manufacture,  storage,
      treatment,  disposal, release or threatened release of any hazardous waste
      or substance by any person on, under, about or from any of the properties.
      (b) Borrower has no knowledge of, or reason to believe that there has been
      (i)  any  use,  generation,  manufacture,  storage,  treatment,  disposal,
      release,  or threatened  release of any  hazardous  waste or substance on,
      under,  about or from the  properties  by any prior owners or occupants of
      any of the  properties,  or (ii) any actual or  threatened  litigation  or
      claims of any kind by any person  relating  to such  matters.  (c) Neither
      Borrower nor any tenant, contractor, agent or other authorized user of any
      of the properties shall use, generate,  manufacture, store, treat, dispose
      of, or release any hazardous  waste or substance on, under,  about or from
      any of the  properties;  and any  such  activity  shall  be  conducted  in
      compliance   with  all  applicable   federal,   state,   and  local  laws,
      regulations,  and ordinances,  including  without  limitation  those laws,
      regulations and ordinances described above. Borrower authorizes Lender and
      its agents to enter upon the properties to make such inspections and tests
      as Lender may deem  appropriate to determine  compliance of the properties
      with this  section  of the  Agreement.  Any  inspections  or tests made by
      Lender shall be at Borrower's  expense and for Lender's  purposes only and
      shall not be  construed to create any  responsibility  or liability on the
      part of Lender to Borrower or to any other person. The representations and
      warranties  contained  herein are based on  Borrower's  due  diligence  in
      investigating the properties for hazardous waste and hazardous substances.
      Borrower  hereby (a) releases and waives any future claims  against Lender
      for indemnity or  contribution  in the event  Borrower  becomes liable for
      cleanup or other  costs under any such laws,  and (b) agrees to  indemnity
      and hold harmless Lender against any and all claims, losses,  liabilities,
      damages,  penalties,  and expenses which Lender may directly or indirectly
      sustain or suffer resulting from a breach of this section of the Agreement
      or  as  a  consequence  of  any  use,  generation,  manufacture,  storage,
      disposal,  release or threatened release of a hazardous waste or substance
      on the  properties.  The  provisions  of this  section  of the  Agreement,
      including the  obligation  to indemnify,  shall survive the payment of the
      Indebtedness and the termination or expiration of this Agreement and shall
      not be  affected  by Lender's  acquisition  of any  interest in any of the
      properties, whether by foreclosure or otherwise.

      Litigation and Claims. No litigation, claim, investigation, administrative
      proceeding or similar  action  (including  those for unpaid taxes) against
      Borrower is pending or  threatened,  and no other event has occurred which
      may  materially   adversely  affect  Borrower's   financial  condition  or
      properties,  other than litigation,  claims, or other events, if any, that
      have been disclosed to and acknowledged by Lender in writing.

      Taxes. To the best of Borrower's knowledge, all tax returns and reports of
      Borrower that are or were required to be filed,  have been filed,  and all
      taxes,  assessments and other governmental charges have been paid in full,
      except those  presently being or to be contested by Borrower in good faith
      in the ordinary  course of business and for which  adequate  reserves have
      been provided.

      Lien Priority. Unless otherwise previously disclosed to Lender in writing,
      Borrower  has not entered  into or granted  any  Security  Agreements,  or
      permitted  the  filing  or  attachment  of any  Security  Interests  on or
      affecting any of the Collateral  directly or indirectly securing repayment
      of Borrower's Loan and Note, that would be prior or that may in any way be
      superior  to  Lender's  Security  Interests  and  rights  in and  to  such
      Collateral.

      Binding Effect. This Agreement, the Note, all Security Agreements directly
      or indirectly  securing  repayment of Borrower's  Loan and Note and all of
      the Related Documents are binding upon Borrower as well as upon Borrower's
      successors,  representatives  and assigns,  and are legally enforceable in
      accordance with their respective terms.

      Commercial Purposes.  Borrower intends to use the Loan proceeds solely for
      business or commercial related purposes.

      Employee  Benefit Plans.  Each employee  benefit plan as to which Borrower
      may  have  any  liability  complies  in all  material  respects  with  all
      applicable  requirements  of law and  regulations,  and (i) no  Reportable
      Event nor Prohibited  Transaction  (as defined in ERISA) has occurred with
      respect to any such plan,  (ii) Borrower has not  withdrawn  from any such
      plan or  initiated  steps  to do so,  (iii) no steps  have  been  taken to
      terminate any such plan, and (iv) there are no unfunded  liabilities other
      than those previously disclosed to Lender in writing.

      Location of Borrower's Offices and Records.  Borrower's place of business,
      or Borrower's Chief executive  office, if Borrower has more than one place
      of business,  is located at P.O. Box 8, Waverly, VA 23890. Unless Borrower
      has  designated  otherwise in writing this  location is also the office or
      offices where Borrower keeps its records concerning the Collateral.

      Information.  All  information  heretofore or  contemporaneously  herewith
      furnished by Borrower to Lender for the purposes of or in connection  with
      this  Agreement  or  any  transaction  contemplated  hereby  is,  and  all
      information hereafter furnished by or on behalf of Borrower to Lender will
      be, true and  accurate in every  material  respect on the date as of which
      such information is dated or certified; and none of such information is or
      will be  incomplete  by omitting to state any material  fact  necessary to
      make such information not misleading.

      Survival of  Representations  and  Warranties.  Borrower  understands  and
      agrees that Lender, without independent investigation, is relying upon the
      above  representations  and warranties in making the above referenced Loan
      to Borrower.  Borrower  further agrees that the foregoing  representations
      and  warranties  shall be  continuing  in nature and shall  remain in full
      force and effect until such time as Borrower's  Indebtedness shall be paid
      in full,  or  until  this  Agreement  shall be  terminated  in the  manner
      provided above, whichever is the last to occur.

AFFIRMATIVE  COVENANTS.  Borrower  covenants and agrees with Lender that,  while
this Agreement is in effect, Borrower will:

      Litigation.  Promptly inform Lender in writing of (a) all material adverse
      changes in Borrower's  financial  condition,  and (b) all existing and all
      threatened litigation, claims, investigations,  administrative proceedings
      or  similar  actions  affecting  Borrower  or any  Guarantor  which  could
      materially  affect the  financial  condition of Borrower or the  financial
      condition of any Guarantor.

<PAGE>


05-01-1998                     BUSINESS LOAN AGREEMENT                    Page 4
Loan No bl13711                     (Continued)

================================================================================

      Financial  Records.  Maintain  its books and  records in  accordance  with
      generally accepted accounting  principles,  applied on a consistent basis,
      and permit Lender to examine and audit Borrower's books and records at all
      reasonable times.

      Financial Statements. Furnish Lender with, as soon as available, but in no
      event  later  than one  hundred  twenty  (120)  days after the end of each
      fiscal year,  Borrower's  balance sheet and income  statement for the year
      ended,  audited by a certified public  accountant  satisfactory to Lender,
      and,  as soon as  available,  but in no event  later than thirty (30) days
      after the end of each fiscal quarter,  Borrower's balance sheet and profit
      and loss statement for the period ended, prepared and certified as correct
      to the best knowledge and belief by Borrower's chief financial  officer or
      other  officer or person  acceptable  to  Lender.  All  financial  reports
      required  to be  provided  under  this  Agreement  shall  be  prepared  in
      accordance with generally  accepted  accounting  principles,  applied on a
      consistent basis, and certified by Borrower as being true and correct.

      Additional   Information.   Furnish  such   additional   information   and
      statements,  lists of assets and  liabilities  agings of  receivables  and
      payables,  inventory  schedules,  budgets,  tax returns, and other reports
      with respect to borrower's  financial condition and business operations as
      Lender may request from time to time.

Financial Covenants and Ratios. Comply with the following covenants and ratios:

      Net Worth  Ratio.  Maintain a ratio of Total  Liabilities  to Tangible Net
      Worth of less than 1.00 to 1.00.

      Current Ratio.  Maintain a ratio of Current Assets to Current  Liabilities
      in excess of 2.00 to 1.00.

      Quick Ratio.  Maintain a ratio of Liquid Assets to Current  Liabilities in
      excess of 2.00 to 1.00. Except as provided above, all computations made to
      determine  compliance  with the  requirements  contained in this paragraph
      shall be made in accordance with generally accepted accounting principles,
      applied on a consistent basis, and certified by Borrower as being true and
      correct.

      Insurance.  Maintain  fire and  other  risk  insurance,  public  liability
      insurance,  and such  other  insurance  as  Lender  may from  time to time
      reasonably  require with respect to Borrower's  properties and operations,
      in form,  amounts,  coverages and with insurance  companies  acceptable to
      Lender. Borrower, upon request of Lender, will deliver to Lender from time
      to time the policies or certificates of insurance in form  satisfactory to
      Lender,  including  stipulations  that  coverages will not be cancelled or
      diminished  without  at least  twenty  (20) days prior  written  notice to
      Lender. Each insurance policy also shall include an endorsement  providing
      that  coverage  in favor of Lender  will not be impaired in any way by any
      act,  omission or default of Borrower or any other  person.  In connection
      with all  policies  covering  assets in which Lender holds or is offered a
      security  interest for the Loans,  Borrower will provide  Lender with such
      loss payable or other endorsements as Lender may require.

      Insurance Reports.  Furnish to Lender, upon request of Lender,  reports on
      each existing  insurance  policy  showing such  information  as Lender may
      reasonably  request,  including without limitation the following:  (a) the
      name of the insurer;  (b) the risks insured; (c) the amount of the policy;
      (d) the properties  insured;  (e) the then current  property values on the
      basis of which insurance has been obtained,  and the manner of determining
      those values; and (f) the expiration date of the policy. In addition, upon
      request of Lender (however not more often than annually Borrower will have
      an independent appraiser satisfactory to Lender determine,  as applicable,
      the actual cash value or replacement  cost of any Collateral.  The cost of
      such appraisal shall be paid by Borrower.

      Other  Agreements.  Comply  with all  terms  and  conditions  of all other
      agreements,  whether now or hereafter  existing,  between Borrower and any
      other  party and notify  Lender  immediately  in writing of any default in
      connection with any other such agreements.

      Loan Fees and  Charges.  In  addition  to all other  agreed  upon fees and
      charges, pay the following: NONE.

      Loan  Proceeds.  Use all Loan proceeds  solely for the following  specific
      purposes: PURCHASE OF PROPERTY AS DESCRIBED IN NOTE.

      Taxes,  Charges  and  Liens.  Pay  and  discharge  when  due  all  of  its
      indebtedness   and   obligations,   including   without   limitation   all
      assessments.  taxes, governmental charges, levies and liens, of every kind
      and nature,  imposed upon Borrower or its properties,  income, or profits,
      prior to the date on which penalties  would attach,  and all lawful claims
      that,  if unpaid,  might  become a lien or charge  upon any of  Borrower's
      properties,  income, or profits.  Provided  however,  Borrower will not be
      required to pay and discharge any such assessment, tax, charge, levy, lien
      or claim so long as (a) the  legality  of the same shall be  contested  in
      good  faith  by  appropriate  proceedings,  and (b)  Borrower  shall  have
      established on it books  adequate  reserves with respect to such contested
      assessment, tax, charge, levy, lien, or claim in accordance with generally
      accepted  accounting  practices.  Borrower,  upon  demand of Lender,  will
      furnish to Lender evidence of payment of the assessments,  taxes, charges,
      levies,  liens and claims and will authorize the appropriate  governmental
      official  to  deliver  to Lender at any time a  written  statement  of any
      assessment taxes,  charges,  levies,  liens and claims against  Borrower's
      properties, income, or profits.

      Performance. Perform and comply with all terms, conditions, and provisions
      set  forth  in this  Agreement  and in the  Related  Documents  in a time,
      manner, and promptly notify Lender if Borrower learns of the occurrence of
      any event which  constitutes  an Event of Default under this  Agreement or
      under any of the Related Documents.

      Operations. Maintain executive and management personnel with substantially
      the same  qualifications  and  experience  as the  present  executive  and
      management  personnel;  provide  written notice to Lender of any change in
      executive  and  management  personnel;  conduct its business  affairs in a
      reasonable  and  prudent  manner  and in  compliance  with all  applicable
      federal,  state and  municipal  laws,  ordinances,  rules and  regulations
      respecting its properties,  charters, businesses and operations, including
      without  limitation,  compliance with the Americans With  Disabilities Act
      and with all minimum funding standards and other requirements of ERISA and
      other laws applicable to Borrower's employee benefit plans.

      Inspection. Permit employees or agents of Lender at any reasonable time to
      inspect any and all Collateral for the Loan or Loans and Borrower's  other
      properties and to examine or audit Borrower's books, accounts, and records
      and to make  copies and  memoranda  of  Borrower's  books,  accounts,  and
      records.  If Borrower now or at any time  hereafter  maintains any records
      (including  without  limitation  computer  generated  records and computer
      software programs for the generation of such records) in the possession of
      a third party,  Borrower,  upon request of Lender, shall notify such party
      to permit Lender free access to such records at all  reasonable  times and
      to  provide  Lender  with  copies of any  records it may  request,  all at
      Borrower's expense.

      Compliance Certificate. Unless waived in writing by Lender, provide Lender
      at least  annually and at the time of each  disbursement  of Loan proceeds
      with a certificate  executed by Borrower's  chief  financial  officer,  or
      other officer or person acceptable to Lender, certifying


<PAGE>

05-01-1998                     BUSINESS LOAN AGREEMENT                    Page 5
Loan No bl13711                     (Continued)

================================================================================

      that the  representations  and  warranties set forth in this Agreement are
      true and correct as of the date of the certificate and further  certifying
      that, as of the date of the certificate,  no Event of Default exists under
      this Agreement.

      Environmental  Compliance  and  Reports.  Borrower  shall  comply  in  all
      respects with all environmental  protection federal,  state and local laws
      statutes,  regulations and ordinances;  not cause or permit to exist, as a
      result of an intentional or  unintentional  action or omission on its part
      or of the part of any third party,  on property  owned and/or  occupied by
      Borrower,  any  environmental  activity  where  damage  may  result to the
      environment,  unless  such  environmental  activity  is pursuant to and in
      compliance  with the  conditions  of a permit  issued  by the  appropriate
      federal, state or local governmental authorities;  shall furnish to Lender
      promptly and in any event within thirty (30) days after receipt  thereof a
      copy of any notice,  summons, lien, citation,  directive,  letter or other
      communication from any governmental  agency or instrumentality  concerning
      any intentional or unintentional  action or omission on Borrower's part in
      connection with any environmental  activity whether or not there is damage
      to the environment and/or other natural resources.

      Additional Assurances. Make, execute and deliver to Lender such promissory
      notes,   mortgages,   deeds  of  trust,  security  agreements,   financing
      statements,  instruments,  documents and other agreements as Lender or its
      attorneys may  reasonably  request to evidence and secure the Loans and to
      perfect all Security Interests.

NEGATIVE  COVENANTS.  Borrower  covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent of
Lender:

      Indebtedness  and Liens.  (a) Except for trade debt incurred in the normal
      course  of  business  and  indebtedness  to  Lender  contemplated  by this
      Agreement,  create,  incur or  assume  indebtedness  for  borrowed  money,
      including capital leases, (b) except as allowed as a Permitted Lien, sell,
      transfer,  mortgage,  assign, pledge, lease, grant a security interest in,
      or encumber any of  Borrower's  assets,  or (c) sell with  recourse any of
      Borrower's accounts, except to Lender.

      Continuity  of   Operations.   (a)  Engage  in  any  business   activities
      substantially different than those in which Borrower is presently engaged,
      (b) cease operations,  liquidate,  merge, transfer, acquire or consolidate
      with any other  entity,  change  ownership,  change its name,  dissolve or
      transfer or sell  Collateral out of the ordinary  course of business,  (c)
      pay any dividends on Borrower's stock (other than dividends payable in its
      stock), provided,  however that notwithstanding the foregoing, but only so
      long as no Event of Default has occurred and is continuing or would result
      from the payment of dividends, if Borrower is a "Subchapter S Corporation"
      (as defined in the Internal  Revenue Code of 1986,  as amended),  Borrower
      may pay cash dividends on its stock to its shareholders  from time to time
      in amounts  necessary to enable the  shareholders  to pay income taxes and
      make  estimated  income tax payments to satisfy  their  liabilities  under
      federal and state law which arise solely from their status as  Shareholder
      of a  Subchapter  S  Corporation  because of their  ownership of shares of
      stock of Borrower, or (d) purchase or retire any of Borrower's outstanding
      shares or alter or amend Borrower's capital structure.

      Loans,  Acquisitions and Guaranties.  (a) Loan, invest in or advance money
      or assets,  (b)  purchase,  create or acquire  any  interest  in any other
      enterprise or entity,  or (c) incur any  obligation as surety or guarantor
      other than in the ordinary course of business.

CESSATION OF  ADVANCES.  If Lender has made any  commitment  to make any Loan to
Borrower,  whether  under this  Agreement or under any other  agreement,  Lender
shall have no  obligation to make Loan Advances or to disburse Loan proceeds if:
(a) Borrower or any Guarantor is in default under the terms of this Agreement or
any of the  Related  Documents  or any  other  agreement  that  Borrower  or any
Guarantor  has with Lender;  (b) Borrower or any  Guarantor  becomes  insolvent,
files a  petition  in  bankruptcy  or  similar  proceedings,  or is  adjudged  a
bankrupt;  (c) there occurs a material  adverse  change in Borrower's  financial
condition,  in the financial condition of any Guarantor,  or in the value of any
Collateral  securing  any Loan;  (d) any  Guarantor  seeks,  claims or otherwise
attempts to limit, modify or revoke such Guarantor's guaranty of the Loan or any
other loan with Lender: or (e) Lender in good faith deems itself insecure,  even
though no Event of Default shall have occurred.

RIGHT OF SETOFF.  Borrower grants to Lender a contractual  security interest in,
and hereby  assigns,  conveys,  delivers,  pledges,  and transfers to Lender all
Borrower's right, title and interest in and to, Borrower's  accounts with Lender
(whether checking, savings, or some other account), including without limitation
all accounts  held jointly with someone else and all accounts  Borrower may open
in the  future,  excluding  however  all IRA and Keogh  accounts,  and all trust
accounts for which the grant of a security interest would be prohibited by laws.
Borrower  authorizes Lender, to the extent permitted by applicable law to charge
setoffs,  administratively  freeze all such  accounts to allow Lender to protect
Lender's charge and setoff rights provided on this paragraph.

EVENTS OF DEFAULT.  Each of the following  shall  constitute an Event of Default
under this Agreement:

      Default on Indebtedness.  Failure of Borrower to make any payment when due
      on the Indebtedness.

      Other  Defaults.  Failure of  Borrower or any Grantor to comply with or to
      perform  when  due any  other  term,  obligation,  covenant  or  condition
      contained in this Agreement or in any of the Related Documents, or failure
      of  Borrower  to comply  with or to perform  any other  term,  obligation,
      covenant or condition  contained in any other agreement between Lender and
      Borrower.

      Default in Favor of Third Parties.  Should Borrower or any Grantor default
      under any loan, extension of credit, security agreement, purchase or sales
      agreement,  or any  other  agreement,  in favor of any other  creditor  or
      person that may materially affect any of Borrower's property or Borrower's
      or any Grantor's  ability to repay the Loans or perform  their  respective
      obligations under this Agreement or any of the Related Documents.

      False  Statements.  Any  warranty,  representation  or  statement  made or
      furnished to Lender by or on behalf of Borrower or any Grantor  under this
      Agreement or the Related  Documents is false or misleading in any material
      respect at the time made or  furnished,  or becomes false or misleading at
      any time thereafter.

      Defective  Collateralization.   This  Agreement  or  any  of  the  Related
      Documents ceases to be in full force and effect (including  failure of any
      Security  Agreement to create a valid and perfected  Security Interest) at
      any time and for any reason.

      Insolvency.  The  dissolution or termination of Borrower's  existence as a
      going business,  or a trustee or receiver is appointed for Borrower or for
      all or a substantial portion of the assets of Borrower,  or Borrower makes
      a general assignment for the benefit of Borrower's creditors,  or Borrower
      files for  bankruptcy,  or an  involuntary  bankruptcy  petition  is filed
      against  Borrower and such involuntary  petition  remains  undismissed for
      sixty (60) days.

      Creditor  or  Forfeiture  Proceedings.   Commencement  of  foreclosure  or
      forfeiture  proceedings,   whether  by  judicial  proceeding,   self-help,
      repossession  or any  other  method,  by any  creditor  of  Borrower,  any
      creditor of any Grantor against any collateral securing the

<PAGE>

05-01-1998                     BUSINESS LOAN AGREEMENT                    Page 6
Loan No bl13711                     (Continued)

================================================================================

      Indebtedness,  or by any governmental agency. This includes a garnishment,
      attachment,  or  levy on or of any of  Borrower's  deposit  accounts  with
      Lender.

      Events  Affecting  Guarantor.  Any of the  preceding  events  occurs  with
      respect to any Guarantor of any of the  Indebtedness or any Guarantor dies
      or becomes  incompetent,  or  revokes  or  disputes  the  validity  of, or
      liability under, any Guaranty of the Indebtedness.

      Change In Ownership.  Any change in ownership of twenty-five percent (25%)
      or more of the common stock of Borrower.

      Adverse Change. A material  adverse change occurs in Borrower's  financial
      condition,  or Lender  believes the prospect of payment or  performance of
      the Indebtedness is impaired.

      Insecurity.  Lender, in good faith, deems itself insecure.

EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where
otherwise provided in this Agreement or the Related  Documents,  all commitments
and  obligations of Lender under this Agreement or the Related  Documents or any
other agreement  immediately  will terminate and, at Lender's  option,  all sums
owing in connection with the Loans,  including all principal,  interest, and all
other fees, costs and charges,  if any, will become immediately due and payable,
all without notice of any kind to Borrower,  except that in the case of an Event
of Default of the type  described in the  "Insolvency"  subsection  above,  such
acceleration shall be automatic and not optional. In addition, Lender shall have
all the rights and  remedies  provided in the Related  Documents or available at
law, in equity, or otherwise. Except as may be prohibited by applicable law, all
of  Lender's  rights  and  remedies  shall be  cumulative  and may be  exercised
singularly  or  concurrently.  Election by Lender to pursue any remedy shall not
exclude pursuit of any other remedy,  and an election to make expenditures or to
take action to perform an  obligation  of  Borrower or of any Grantor  shall not
affect  Lender's  right to  declare a default  and to  exercise  its  rights and
remedies.

MISCELLANEOUS  PROVISIONS.  The following miscellaneous provisions are a part of
this Agreement:

      Amendments.   This  Agreement,   together  with  any  Related   Documents,
      constitutes  the entire  understanding  and agreement of the parties as to
      the matters set forth in this Agreement.  No alteration of or amendment to
      this  Agreement  shall be effective  unless given in writing and signed by
      the party or parties  sought to be charged or bound by the  alteration  or
      amendment.

      Applicable  Law.  This  Agreement  shall be  governed  by,  construed  and
      enforced in  accordance  with the laws of the  Commonwealth  of  Virginia.
      Lender  and  Borrower  hereby  waive  the  right to any jury  trial in any
      action,  proceeding,  or counterclaim  brought by either party against the
      other.

      Caption  Headings.  Caption headings in this Agreement are for convenience
      purposes only and are not to be used to interpret or define the provisions
      of this Agreement.

      Multiple Parties;  Corporate Authority.  All obligations of Borrower under
      this Agreement shall be joint and several,  and all references to Borrower
      shall mean each and every  Borrower.  This means that each of the  persons
      signing below is responsible for all obligations in this Agreement.

      Consent to Loan  Participation.  Borrower  agrees and consents to Lender's
      sale or  transfer,  whether  now or  later,  of one or more  participation
      interests  in the  Loans to one or more  purchasers,  whether  related  or
      unrelated  to  Lender.   Lender  may  provide,   without  any   limitation
      whatsoever,  to any one or more purchasers,  or potential purchasers,  any
      information or knowledge Lender may have about Borrower or about any other
      matter  relating to the Loan,  and  Borrower  hereby  waives any rights to
      privacy it may have with respect to such  matters.  Borrower  additionally
      waives any and all notices of sale of participation  interests, as well as
      all notices of any repurchase of such  participation  interests.  Borrower
      also agrees that the purchasers of any such  participation  interests will
      be  considered as the absolute  owners of such  interests in the Loans and
      will have all the rights  granted  under the  participation  agreement  or
      agreements  governing the sale of such participation  interests.  Borrower
      further waives all rights of offset or  counterclaim  that it may have now
      or later against  Lender or against any purchaser of such a  participation
      interest and  unconditionally  agrees that either Lender or such purchaser
      may enforce  Borrower's  obligation  under the Loans  irrespective  of the
      failure or insolvency of any holder of any interest in the Loans. Borrower
      further agrees that the purchaser of any such participation  interests may
      enforce its interests irrespective of any personal claims or defenses that
      Borrower may have against Lender.

      Costs and  Expenses.  Borrower  agrees to pay upon  demand all of Lender's
      out-of-pocket  expenses  incurred in connection  with this Agreement or in
      connection with the Loans made pursuant to this Agreement.  Subject to any
      limits under  applicable  law, if Lender hires an attorney to help enforce
      this  Agreement  or to collect any  Indebtedness,  Borrower  agrees to pay
      Lender's  attorney fees equal to 25.000% of the  principal  balance due on
      the Note, and all of Lender's other  collection  expenses,  whether or not
      there  is  a  lawsuit  and  including   legal   expenses  for   bankruptcy
      proceedings.

      Notices.  All notices  required to be given under this Agreement  shall be
      given in writing, may be sent by telefacsimile  (unless otherwise required
      by law), and shall be effective when actually  delivered if hand delivered
      or when  deposited  with a  nationally  recognized  overnight  courier  or
      deposited as certified or registered mail in the United States mail, first
      class, postage prepaid, addressed to the party to whom the notice is to be
      given at the  address  shown  above.  Any party may change its address for
      notices under this  Agreement by giving formal written notice to the other
      parties,  specifying  that the  purpose  of the  notice is to  change  the
      party's  address.  To the extent  permitted by applicable law, if there is
      more than one Borrower,  notice to any Borrower will constitute  notice to
      all Borrowers. For notice purposes,  Borrower will keep Lender informed at
      all times of Borrower's current address(es).

      Severability.  If a court of competent jurisdiction finds any provision of
      this  Agreement  to be  invalid  or  unenforceable  as to  any  person  or
      circumstance,  such  finding  shall not render that  provision  invalid or
      unenforceable as to any other persons or circumstances.  If feasible,  any
      such offending  provision  shall be deemed to be modified to be within the
      limits of enforceability or validity;  however, if the offending provision
      cannot be so modified,  it shall be stricken and all other  provisions  of
      this Agreement in all other respects shall remain valid and enforceable.

      Subsidiaries and Affiliates of Borrower.  To the extent the context of any
      provisions  of this  Agreement  makes it  appropriate,  including  without
      limitation any representation,  warranty or covenant,  the word "Borrower"
      as used herein shall include all  subsidiaries and affiliates of Borrower.
      Notwithstanding  the foregoing however,  under no circumstances shall this
      Agreement  be  construed  to  require  Lender  to make  any  Loan or other
      financial accommodation to any subsidiary or affiliate of Borrower.


<PAGE>

05-01-1998                     BUSINESS LOAN AGREEMENT                    Page 7
Loan No bl13711                     (Continued)

================================================================================

      Successors and Assigns.  All covenants and  agreements  contained by or on
      behalf of Borrower  shall bind its  successors and assigns and shall inure
      to the benefit of Lender, its successors and assigns.  Borrower shall not,
      however,  have the right to assign its rights under this  Agreement or any
      interest therein, without the prior written consent of Lender.

      Survival. All warranties,  representations,  and agreements of Borrower in
      this Agreement shall survive the making of the Loan or Loans  contemplated
      hereby,  and shall be deemed  made and  redated by Borrower at the time of
      the making of each disbursement of Loan proceeds.

      Time Is of the Essence.  Time is of the essence in the performance of this
      Agreement.

      Waiver.  Indulgence  by  Lender  with  respect  to any of  the  terms  and
      conditions  of this  Agreement or the failure of Lender to exercise any of
      its rights under this Agreement shall not constitute a waiver thereof, and
      Borrower shall remain liable for the strict  performance of such terms and
      conditions until this Agreement shall be terminated.  No provision of this
      Agreement  may be waived  or  modified  orally,  but all such  waivers  or
      modifications  shall be in  writing.  Whenever  the  consent  of Lender is
      required under this  Agreement,  the granting of such consent by Lender in
      one  instance  shall  not  constitute   Lender's   continuing  consent  in
      subsequent  instances,  and in all cases mat be granted or withheld in the
      sole discretion of Lender.

THIS BUSINESS LOAN  AGREEMENT IS SIGNED,  SEALED AND DELIVERED  EFFECTIVE IN ALL
RESPECTS AS OF MAY 1, 1998.

BORROWER:
<TABLE>
<CAPTION>
<S>                                                <C>
Spurlock Adhesives, Inc.

By:     /s/ Phillip  S.   Sumpter         (SEAL)   By:    /s/ Irvine R. Spurlock (SEAL) 
     -------------------------------------            ------------------------------------
     PHILLIP S. SUMPTER, CHAIRMAN AND CEO             IRVINE R. SPURLOCK, PRESIDENT
</TABLE>

LENDER:

JAMES RIVER BANK


By:________________________________
Authorized Officer

================================================================================




<PAGE>


                                    EXHIBIT A

ALL that  certain  lot,  piece or parcel of land lying and being  situate on the
East side of Bank Street in the town of Waverly,  Sussex County,  Virginia,  and
containing  0.506  acres,  more or less,  and being  shown and  designated  on a
certain plat of survey titled "SURVEY AND PLAT OF PROPERTY BELONGING TO THE TOWN
OF WAVERLY"  made by Lee B.  Carpenter,  Office of the  Circuit  Court of Sussex
County,  Virginia in Plat Book 10 at page 80 and  reference to which is heremade
for a more full and complete description.

LESS,  SAVE,  AND EXCEPT a small triangle of land  containing  718.3 square feet
conveyed to  Commonwealth of Virginia,  Department of Conservation  and Economic
Development,  Division  of  Forestry,  by deed dated 28 January  1960,  and duly
recorded in the Clerk's office of the Circuit Court of Sussex  County,  Virginia
in Deed Book 59 at page 451,  with plat attached and recorded in Plat Book 10 at
page 95.