<PAGE>

                                                                   EXHIBIT 10.10

                      U.S. Small Business Administration

                     Certified Development Company Program

                                  "504" NOTE

                  Loan Number  CDC-753817  30 08-OH
                             ------------------------------

                                                          Kirtland, Ohio
                                                       -----------------------
                                                              (City and State)

$   175,000.00                                      (Date)  March 10      1995
 ---------------                                          --------------,   ---

   For value received, the Undersigned promises to pay to the order of
     Lake County Small Business Assistance Corporation
 -----------------------------------------------------------------------------
                          Payee (development company)
at its office in (City and State)     Kirtland, Ohio
                                  --------------------------------------------,
or upon assignment or transfer of this Note by the Payee, and written notice
thereof to the Undersigned, at such other place as may be designated from time
to time by said assignee or transferee, _____________________________________
                                       ----------------------------------------
One Hundred Seventy Five Thousand ----00/100ths----------------------  dollars,
---------------------------------------------------------------------
                              (Write out amount)
with interest on the outstanding balance at     6.999  % per annum commencing
                                            -----------
on     May 17, 1995        1995  (date of Debenture).
   ---------------------,    ---

   Loan payments shall be made in equal installments, each in the amount of
$2,036.87  commencing on the first day of    June    1995  and continuing due
----------,                               ---------,   --,
and payable on the first day of each month thereafter until    May 1     2005
                                                            ----------,  ----,
when the full unpaid balance of principal and interest shall become due and
payable. In addition to the aforesaid loan payments, Undersigned's total monthly
obligation shall include the service fees set forth in the Servicing Agent
Agreement (SBA Form 1506) attached to and incorporated into this Note.

     This Promissory Note evidences and related Collateral is given, to secure a
loan made by the Payee to the Undersigned and such Note and Collateral will be
assigned by Payee to the Small Business Administration (SBA) to secure the
guaranty by SBA pursuant to section 503(a) of the Small Business Investment Act
(15 U.S.C. section 697(a)), of a Debenture to be issued and sold by the Payee
(the "Debenture"), which is hereby incorporated herein by reference.

     All payments under this note shall be applied in this order:   (1) to the
servicing fees set forth in the Servicing Agent Agreement, (2) to interest, (3)
to principal, (4) to the late fee set forth in this Note.

Late Charge
-----------

In the event Payee or its Agent or assignee accepts a late payment after the
fifteenth day of the month in which such payment is due, the Undersigned agrees
to pay a late payment charge equal to five percent of the late amount or
$100.00, whichever is greater, as compensation for additional collection
efforts.

Definitions
-----------

The term "Indebtedness" as used herein shall mean the indebtedness evidenced by
this Note, including principal, interest, service fees, late payment

                                      -1-

<PAGE>

charges, and expenses including but not limited to the expenses related to the
care and preservation of Collateral and interest at the note rate thereon,
whether contingent, now due or hereafter to become due, and the stated
prepayment premium, if applicable. The term "Collateral" as used in this Note
shall mean any funds, guaranties, or other property, or rights therein of any
nature whatsoever, or the proceeds thereof, which are, or hereafter may be
hypothecated, directly or indirectly, by the Undersigned or others, in
connection with, or as security for, the Indebtedness or any part thereof. The
Collateral, and each part thereof, shall secure the Indebtedness and each part
thereof. The covenants and conditions set forth or referred to in any
instruments of hypothecation constituting the Collateral are hereby incorporated
in this Note as covenants and conditions of the Undersigned with the same force
and effect as though such covenants and conditions were fully set forth herein.
The term "CSA" shall mean the Central Servicing Agent appointed by the
development company (SBA Form 1506) and accepted by the Undersigned to receive
all payments by the Undersigned under this Note. The term "Undersigned" shall
mean the borrower under this Note and, if the operating small concern for the
benefit of which this loan is made is not the borrower, such operating small
concern.

Prepayment
----------

Payment of the entire outstanding balance of the Indebtedness may be made prior
to the maturity date hereof, timing to be arranged with Payee or SBA as assignee
but no partial prepayments may be made. The amount required to prepay this Note
shall be the aggregate of the Indebtedness including interest to the prepayment
(repurchase) date, and any prepayment premium required by the schedule to be
attached to this Note and incorporated by this reference. For purposes of
prepayment the repurchase date is the next semi-annual payment date on the
Debenture. The Undersigned must make a written request for prepayment to the
payee or SBA as assignee at least forty-five (45) days before the prepayment
date. Ten (10) business days prior to the scheduled prepayment date the
undersigned shall cause to be transferred by wire a non-refundable good faith
deposit of one thousand dollars ($1,000) to the CSA. Such deposit shall be
applied in full to the repurchase price of said debenture and shall be forfeited
if undersigned fails to pay the designated total prepayment amount to the CSA on
the designated prepayment date, as compensation for the cost of arranging the
failed prepayment.

Acceleration
------------

The Indebtedness shall immediately become due and payable, upon the appointment
of a receiver or liquidator, whether voluntary or involuntary, for the
Undersigned or for any of its property, or upon the filing of a petition by or
against the Undersigned under the provisions of any State or Federal insolvency
law or under the provisions of the Bankruptcy Code of 1978 or upon the making by
the Undersigned of an assignment for the benefit of its creditors. Payee with
the consent of SBA, or SBA as assignee is authorized to declare all or any part
of the Indebtedness immediately due and payable upon the happening of any of the
following events: (1) Failure to pay any part of the Indebtedness when due; (2)
nonperformance by the Undersigned of any agreement with, or any condition
imposed by, the development company or SBA; (3) failure of the Undersigned or
any person acting on behalf of the Undersigned to disclose any material fact, in
any application, declaration or other document delivered to the development
company or SBA or any misrepresentation by or for the benefit of the Undersigned
in such document; (4) the reorganization, merger or consolidation of the
Undersigned without

                                      -2-
<PAGE>

prior written consent of the development company and SBA, or the making of an
agreement therefor; (5) the sale of the Collateral, or any part of it or any
interest in it, or any agreement that the Collateral will be alienated by the
Undersigned, or any alienation of the Collateral by operation of law or
otherwise; (6) the Undersigned's failure duly to account, to Payee's or SBA's
(as assignee) satisfaction, at such time or times as may be required, for any of
the Collateral, or proceeds thereof, coming into the control of the Undersigned;
(7) the institution of any suit affecting the Undersigned deemed by SBA to
affect adversely its interest hereunder in the Collateral or otherwise; (8) any
change, without prior written approval by SBA, affecting ten or more percent in
the legal or equitable ownership of the Undersigned; (9) any change in the
respective ownerships of the Undersigned; (10) if the Undersigned and/or its
affiliates acquire directly or indirectly an ownership interest of ten or more
percent in the development company; (11) any other event prohibited by the
related security or other instruments; or (12) any violation by the Undersigned
of SBA regulations.  Payee's or SBA's as assignee failure to exercise its rights
under this paragraph shall not constitute a waiver thereof.  Upon acceleration
pursuant to this paragraph, the indebtedness shall be computed in the same
manner as is set forth for the prepayment amount in the preceding paragraph
captioned "Prepayment".

Collateral
----------

Upon the nonpayment of the Indebtedness, or any part thereof, when due, whether
by acceleration or otherwise, Payee with SBA's consent or SBA as assignee is
empowered to sell, assign, and deliver the whole or any part of the Collateral
at public or private sale. After deducting all expenses incidental to such sale
or sales, Payee or SBA as assignee may apply the proceeds thereof to the payment
of the Indebtedness as it shall deem proper. The Undersigned hereby waives all
rights to redemption or appraisement whether before or after sale. Payee with
SBA's consent or SBA as assignee is further empowered, to convert into money all
or any part of the Collateral, by suit or otherwise, and to surrender,
compromise, release, renew, extend, exchange, or substitute any item of the
Collateral in transactions with the Undersigned or any third party. Whenever any
item of the Collateral shall not be paid when due, or otherwise shall be in
default, whether or not the Indebtedness, or any part thereof, has become due,
Payee or SBA as assignee shall have the same rights and powers with respect to
such item of the Collateral as are granted in respect thereof in this paragraph
in case of nonpayment of the Indebtedness, or any part thereof, when due. None
of the rights, remedies, privileges, or powers of Payee or SBA as assignee
expressly provided for herein shall be exclusive, but each of them shall be
cumulative with and in addition to every other such power now or hereafter
existing in favor of Payee or SBA as assignee, whether at law or in equity, by
statute or otherwise.

The Undersigned agrees to take all necessary steps to administer, supervise,
preserve, and protect the Collateral; and regardless of any action taken by
Payee or SBA as assignee, there shall be no duty upon Payee or SBA as assignee
in this respect.  The Undersigned shall pay all expenses of any nature,
including but not limited to reasonable attorney's fees and costs, which Payee
or SBA as assignee may deem necessary in connection with the satisfaction of the
Indebtedness or the administration, preservation (including, but not limited to,
adequate insurance of), or the realization upon the Collateral.  Payee with
SBA's consent or SBA as assignee is authorized to pay at any time and from time
to time any or all of such expenses, add the amount of such payment to the
amount of the Indebtedness, and charge interest thereon at the rate specified
herein with respect to the principal amount of this Note.

The security rights of Payee or SBA as assignee hereunder shall not be impaired
by any indulgence, including but not limited to (a) any renewal,

                                      -3-

<PAGE>

extension, or modification which Payee or SBA as assignee may grant with respect
to the Indebtedness or any part thereof, or (b) any surrender, compromise,
release, exchange, or substitution which Payee or SBA as assignee may grant in
respect of the Collateral, or (c) any indulgence granted in respect to any
endorser, guarantor, or surety. The Payee or SBA as assignee of this Note, the
Collateral, any guaranty, and any other document (or any of them), sold,
transferred, or pledged, shall forthwith become vested with and entitled to
exercise all the powers and rights given by this Note as if said purchaser,
transferee, or pledgee were originally named as Payee in this Note.

                                                   Napro, Inc.
                                                   -----------------------------

/s/ Evangelia S. Tsengas                  [Title]      /s/ Steven Tsengas
------------------------------                     -----------------------------
Evangelia S. Tsengas, Sec
                            [Name of Undersigned]  Steven Tsengas, President
                                                   -----------------------------
  In consideration of the guarantee by Small Business Administration of a
Debenture in the amount of $   175,000.00        issued by
                            -------------------,

               Lake County Small Business Assistance Corporation
--------------------------------------------------------------------------------

                             (Development Company)

(which Debenture is identified as Small Business Project _______________________
                     Napro, Inc., Sanar Plastics Division                     )
------------------------------------------------------------------------------
                            (Name of Small Concern)

said   Lake County Small Business Assistance Corporation               hereby
     -----------------------------------------------------------------
                             (Development Company)

assigns and transfers all rights, title and interest in this Note to the Small
Business Administration.

                         SEAL

                               Lake County Small Business Assistance Corporation
                                                     --------------------------
                                                    Bryon A. Pike, President

                                                     By  /s/ Bryon A. Pike
                                                        ------------------------


Attest  /s/ Norman Smyke
       ------------------------------------
       Norman Smyke, Secretary

                                      -4-
<PAGE>

                          U.S. GOVERNMENT GUARANTEED
            6.9000% DEVELOPMENT COMPANY PARTICIPATION CERTIFICATES
                               SERIES 1995-10C
                     DEBENTURE PREPAYMENT PREMIUM SCHEDULE


SMALL BUSINESS CONCERN:  NAPRO, INC, SANAR PLASTICS
                         DIVISION
                ISSUER:  LAKE COUNTY SMALL BUSINESS ASSISTANCE
                         CORPORATION


      DEBENTURE NUMBER:  1995-10C/05-499-01021
       SBA LOAN NUMBER:  753817-3008
   DEBENTURE PRINCIPAL:  $175000.00
-------------------------------------------------------------------------------

                                 PREMIUM AMOUNT               PREPAYMENT
          PAYMENT DATE           * SEE NOTE (1)              RATE (INT.%)
          ------------           --------------              ------------

          NOV. 1, 1995                 11611.29                   6.90000
          MAY  1, 1996                 11168.62                   6.90000

          NOV. 1, 1996                  8568.54                   5.52000
          MAY  1, 1997                  8189.54                   5.52000

          NOV. 1, 1997                  5848.10                   4.14000
          MAY  1, 1998                  5543.91                   4.14000

          NOV. 1, 1998                  3486.14                   2.76000
          MAY  1, 1999                  3269.11                   2.76000

          NOV. 1, 1999                  1522.29                   1.38000
          MAY  1, 2000                  1406.16                   1.38000



           * NOTE (1) PREMIUM AMOUNT IS BASED ON DEBENTURE BALANCE.
                      NO PREPAYMENT PREMIUM AFTER THE FIFTH YEAR.


<PAGE>

                                LOAN AGREEMENT
                                --------------

     THIS AGREEMENT made and entered into this 10 day of March, 1995, by and
between Napro, Inc., an Ohio corporation, (hereinafter referred to as
"Borrower") and Lake County Small Business Assistance Corporation, a not for
profit corporation, (hereinafter referred to as "Lender")

WITNESSETH:

A.   WHEREAS, Section 504 of the Small Business Investment Act of 1958
authorizes the U.S. Small Business Administration (hereinafter referred to as
"SBA") to guarantee debentures (hereinafter referred to as "504 Debenture")
issued by a qualified local development company (hereinafter referred to as "504
Company") the proceeds of the 504 Debentures to be in turn loaned by the 504
Company to a small business; and

B.   WHEREAS, to qualify as a 504 Company, a local development company must be
certified by SBA, and

C.   WHEREAS, the Lender has been duly qualified and certified by SBA as a 504
Certified Development Company, under Certificate No. 05-499, and

D.   WHEREAS, the Borrower has applied to the Lender for a loan (the "Loan") for
the purpose of purchasing machinery and equipment and,

E.   WHEREAS, the Lender desires to issue and sell 504 Debentures, and lend
proceeds to the Borrower for such purposes.

NOW, THEREFORE, in consideration of the mutual covenants herein set forth, the
parties agree as follows:

1.   PURPOSE AND AMOUNT OF LOAN.
     ---------------------------

        a. Subject to the terms and conditions of this Agreement and the
Authorization, the Lender agrees to lend the principal amount of ONE HUNDRED
SEVENTY FIVE THOUSAND DOLLARS ($175,000.00) to Borrower for the purpose of
assisting Borrower to purchase machinery and equipment and by the partial
repayment and "takeout" of Borrower's interim construction financing. Said ONE
HUNDRED SEVENTY FIVE THOUSAND DOLLARS ($175,000.00) shall be obtained by Lender
from the proceeds of the sale of 504 Debentures to be issued by Lender and
guaranteed by SBA.

        b. The Borrower agrees that it will apply the funds received by it under
this Agreement in accordance with the use of loan proceeds specified in the SBA
Authorization and Guaranty Agreement No. CDC-753817 30 08-OH (the "SBA
Guaranty"). The Borrower further agrees that no application of any funds
received from the Lender hereunder shall be made in violation of the Small

                                       1
<PAGE>

Business Investment Act of 1958, as amended, or the Regulations promulgated
hereunder.

        c. The proceeds of the Loan shall be paid and distributed to Bank One,
Cleveland, NA, in partial repayment of its interim financing. Distribution of
the Loan shall be made through the Colson Services Corp., P.O. Box 1289, Bowling
Green Station, New York, New York, 10274, as Central Servicing Agent
(hereinafter referred to as "CSA") and Lender shall have no responsibility with
respect thereto.

        d. Borrower has executed the Authorization and Debenture Guarantee (SBA
Form 1248) as required by SBA and contemporaneously with this Agreement agrees
to execute all other documents and do all things necessary in order to
consummate the SBA transaction herein contemplated.

        e. In the event that Lender and Borrower do not succeed in completing
the transaction with SBA, with the result that the 504 Debentures issued by
Lender in connection with this Loan are not sold, Lender shall not have any
obligation to go forward with the loan, and this Loan Agreement shall be
cancelled.

2.   INTEREST.
     ---------

        Interest on the Loan to be made hereunder shall be determined by the
Secretary of the Treasury one day before the sale of the 504 Debentures,
pursuant to Section 504 (b) (3) of the Small Business Investment Act, 15 USC
Section 697 (b) (3).

3.   TERM.
     -----

        The term of the Loan shall be ten (10) years. The note shall be payable
in 120 equal monthly installments. The first installment shall be due and
payable on the 1st day of May 1995, and the principal of the Loan shall be
repaid on or before the 1st day of April, 2005. All payments shall be applied
first to interest and service charges and then to principal. Payment of
principal and interest shall be made by wire, to COLSON SERVICES CORP., P.O. Box
1289, Bowling Green Station, New York, New York, 10274 as CSA for Borrower.
Simultaneously with the wiring of each payment to CSA, Borrower will mail to
Lender a copy of the wire.

4.   THE NOTE.
     ---------

        The Loan to be made hereunder shall be evidenced by a Promissory Note
(hereinafter referred to as "Note"), in such form as the Lender shall require
and shall be executed by the corporate officers of Napro, Inc.

5.   CENTRAL SERVICING AGENT AGREEMENT.
     ----------------------------------

        Borrower agrees to use the services of CSA as Fiscal agent

                                       2
<PAGE>

in connection with the Loan and to enter into an agreement on SBA Form 1506 (the
"CSA Agreement") among Borrower, Lender and CSA. The CSA Agreement shall
provide, among other things, for the following:

        a. Borrower shall pay to Lender a processing fee of 1.5% of the net
proceeds of the 504 Debenture. In addition, Borrower shall pay to Lender one-
half of one percent (1/2 of 1%) of the outstanding balance of the Loan
determined at five (5) year anniversary intervals at the beginning of such
interval, as an annual servicing fee, payable in monthly installments.

        b. Borrower shall pay the Colson Services Corp. an origination fee of
one-fourth of 1% of the 504 Debenture amount at the time of the disbursement of
the Loan and an annual servicing fee payable monthly of one-tenth of 1% of the
unpaid balance of the Loan such balance to be determined at five (5) year
anniversary intervals at the beginning of such interval.

        c. CSA shall withhold from the 504 Debenture sale proceeds an amount
equal to one half of one percent (1/2 of 1%) of the net debenture proceeds and
place such deposit amount ("Reserve Deposit") in a Master Reserve Account. This
deposit is not refundable.

6.   PROVIDE ADDITIONAL EQUITY.
     --------------------------

        The Borrower agrees to provide additional equity funds to cover
additional project costs incurred as a result of overruns or unanticipated
expenses or changes in work orders in the project as specified in the SBA
Guaranty.

7.   INSUFFICIENT FUNDS.
     -------------------

        If the proceeds of the 504 Debentures are insufficient to cover all
disbursements required by the terms of the CSA Agreement, Borrower shall be
solely responsible for providing whatever additional funds may be needed to
comply with the said Agreement. These disbursements, which shall be specified in
said Agreement, may include, without being limited to, principal and accrued
interest of interim Lender, the Reserve Fund Account, the Processing Fee of
Lender and the initiation fee of CSA.

8.   SECURITY.
     ---------

        a. Borrower shall give a second purchase money security interest
pursuant to the Uniform Commercial Code in all machinery and equipment to be
acquired from the proceeds of this Loan, or hereafter acquired, and the proceeds
therefrom, subject only to a prior lien not to exceed TWO HUNDRED TEN THOUSAND
DOLLARS ($210,000.00) in favor of Bank One, Cleveland, NA. Borrower shall
provide Lender with a complete list of all furniture, machinery, trade fixtures
and equipment against which the aforesaid security interest attaches.

                                       3
<PAGE>

       b.   Borrower shall give a security interest pursuant to the Uniform
Commercial Code, on all machinery and equipment (excluding automotive
equipment), furniture, trade fixtures, inventory, contract rights, accounts
receivable and general intangibles now owned, to be acquired and hereafter
acquired, subject only to a prior lien on existing 504 loan #CDC-544570 30
05-OH.

       c.   The following shareholders shall individually and personally
guaranty the Note for the full balance owing thereon, plus accrued interest,
penalties, and late charges, if any:
                               Steven Tsengas
                               Evangelia Tsengas
                               Nicholas Tsengas

9.   REPRESENTATIONS:
     ----------------

       In order to induce the Lender to make the Loan hereunder, Borrower
represents and warrants:

       a.   That Borrower is a corporation duly organized, validly existing and
in good standing under the laws of the State of Ohio and has authority to enter
into this agreement and to borrow hereunder.

       b.   That making and performance by the Borrower of this Agreement, and
the execution and delivery of the Note, and any Security Agreements and
Instruments have been duly authorized by all necessary corporate action and will
not violate any law, rule, regulation, order, writ, judgement, decree,
determination or award presently in effect having applicability to the Borrower
or any provision of the Borrower's Certificate of Incorporation or By Laws or
result in a breach of or constitute a default under any indenture or bank loan
or credit agreement or any other agreement or instrument to which the Borrower
is a party or by which it or its property may be bound or affected.

       c.   That when this Agreement is executed by the Borrower and the Lender,
and when the Note is executed and delivered by the Borrower for value, each such
instrument shall constitute a legal, valid, and binding obligation of the
company in accordance with its terms.  Any Security Agreements or Instruments,
Financing Statements, Mortgages and other liens on chattels or real estate shall
constitute legal, valid, and binding liens free and clear of all prior liens and
encumbrances except as provided for herein.

       d. That Borrower certifies that there has been no adverse change since
the date of loan application in the financial condition, organization,
operation, business prospects, fixed properties, or personnel of the Borrower.

       e.   That Borrower is not a party to any action, suit of

                                       4


<PAGE>

proceeding pending, or, to the knowledge of the Borrower, threatened at law or
in equity before any court or administrative officer or agency which brings into
question the validity of the transaction herein contemplated or might result in
any adverse change in the business or financial condition of the Borrower.

     f.   That the Borrower is not in default of any obligations, covenants, or
conditions contained in any bond, debenture, note, or other evidence of
indebtedness or mortgages or collateral instruments securing the same. The
making of this agreement and the consummation of the transaction contemplated
herein will not violate any provision of law or result in a breach or constitute
a default under any agreement to which Borrower is a party or result in a
creation of any lien, charge or encumbrance upon any of its property or its
assets.

     g.   Borrower has filed all tax returns which are required to be filed and
has paid or made provision for the payment of all taxes which have or may become
due pursuant to said returns or pursuant to any assessments received by them. No
tax liability has been asserted by the Internal Revenue Service or other taxing
agency, federal, state or foreign, for taxes materially in excess of those
already provided for and the Borrower knows of no basis for any such deficiency
assessment.

     h.   Borrower hereby indemnifies and holds Lender harmless against any
losses, claims, damages, or liabilities to which it may be subject as a result
of any claim for services in the nature of a finder's fee or commission with
respect to the transactions contemplated hereunder or arising out of any such
claims and will reimburse Lender for any legal or other expenses incurred by it
in investigating or defending any such claim or liability asserted therefore.

     i.   The Borrower shall use all of the proceeds of this loan for the
purpose stated in paragraph 1 hereof.

10. CONDITIONS OF LOAN.
    ------------------

     a.   All of the representations and warranties contained in this Agreement
shall be true and correct on and as of the closing date.

     b.   All proceedings taken in connection with the transaction contemplated
by this Agreement and all documents incidental thereto shall be satisfactory in
form, scope and substance to Lender's counsel, and Lender shall have received
copies of all documents which it or its counsel may reasonably request in
connection with said transaction in form, scope and substance satisfactory to
its counsel.

     c.   All necessary approvals or consents, if any, such approvals or
consents be required of governmental bodies having jurisdiction with respect to
the construction herein

                                       5
<PAGE>

obtained such consents shall constitute a default hereunder.

     d.   If Borrower, or any person or entity constituting part of Borrower, or
any guarantor of the loan to be made hereunder is a corporation, there shall be
delivered to Lender (with respect to each such corporation, if there be more
than one) a copy of the record of specifically authorizing its officers to
execute this Agreement and all other documents necessary to the consummation of
this transaction. The record of the minutes of the Board of Directors shall be
certified to be true by the Secretary or Assistant Secretary of such
corporation.

     e.   Borrower shall have secured mortgage title insurance for the
protection of Lender at Borrower's expense; and Borrower shall have paid (or, at
the option of Lender, will pay promptly after closing) all reasonable expenses
incurred by but not limited to, expenses for appraisals, reappraisals, surveys,
searches, guarantees, policies of title insurance, attorney fees incurred by
Lender in connection with the transaction, whether or not a loan is made.
Borrower has deposited the sum of $300.00 with Lender to such the payment of
such costs. Any unused portion thereof will be returned to Borrower; any costs
exceeding said sum shall be paid by Borrower to Lender at or prior to closing of
the Loan.

     f.   All necessary approvals or consents required with respect to this
transaction by any mortgagee or other party having interest in the Real Estate
shall have been obtained, and failure to have obtained such consents shall
constitute a default hereunder.

     g.   The SBA transaction described hereinabove shall have been concluded,
and 504 Debentures shall have been sold.

11.  AFFIRMATIVE COVENANTS.
     ---------------------

     Until payment in full of the Note and all other payments due to the Lender
hereunder, and the performance of all of the terms, conditions and provisions of
this Agreement and the mortgages, Borrower shall cause the following to be done.

     a.   Borrower will at all times keep proper books of account in a manner
satisfactory to Lender and/or SBA. Borrower hereby authorizes Lender or SBA to
make or cause to be made, at Borrower's expense and in such manner and at such
times as Lender may require, (a) inspection and audit of any books, records and
papers in the custody or control of Borrower or others, relating to Borrower's
financial or business conditions, including the making of copies thereof and
extracts therefore, and (b) inspections and appraisals of any Borrower's assets.
Borrower shall furnish to Lender and SBA for the twelve month period ending
December 31, 1994 and annually thereafter (no later than three months following
the expiration of any such period) and at such other times and in such form as
Lender may prescribe,

                                       6
<PAGE>

such other times and in such form as Lender may prescribe, Borrower's financial
and operating statements. Borrower hereby authorizes all Federal, State and
Municipal authorities to furnish reports of examination, records and other
information relating to the conditions and affairs of Borrower and any desired
information relating to the conditions and affairs of Borrower and any desired
information from reports, returns, files and records of such authorities upon
request therefrom by Lender and SBA. Lender shall be given free access to the
Real Estate for the purpose of such inspection or audits and also for the
purpose of determining the condition of the premises.
     b.   Borrower will deliver to Lender within fifteen (15) days after any
written request therefore from Lender such information as may be reasonably
necessary to determine whether the Borrower is complying with its covenants and
agreements contained in this Loan Agreement or an Event of Default has occurred.

     c.   Borrower will punctually pay or cause to be paid the principal and
interest to become due in respect to the Note in accordance with the terms
thereof.

     d.   Borrower will, upon demand, promptly pay and discharge all taxes,
assessments or other governmental charges which may lawfully be levied or
assessed on their income or profits or any part thereof, and also all lawful
claims for labor or material

     e.   Borrower certifies that as a result of this project five (5) full-time
equivalent jobs will be created within two (2) years of project completion.

     f.   Borrower will, upon demand, pay or cause to be paid the principal and
interest on all indebtedness heretofore or hereafter incurred or assumed by it
when and as the same shall become due and payable, unless such indebtedness be
renewed or extended, and will observe, perform and discharge all of the
covenants, conditions, and obligations which are imposed on it by and all
indentures and other agreements securing or evidencing so to prevent an
occurrence of any act of omission which under the provisions thereof may be
declared to be default thereunder which may result in a lien placed upon the
Real Estate.

     g.   Borrower will at all times cause all of the property to be maintained
and kept in such condition and repair that Lender's security will be adequately
protected.

     h.   In the event that any provision of this Agreement or any other
instrument executed at closing or the application thereof to any person or
circumstances shall be declared null and void, invalid or held for any reason to
be unenforceable by a Court of competent jurisdiction, the remainder of such
agreement shall nevertheless remain in full force and effect, and to this end,
the provisions of all covenants, conditions and agreements described herein are
deemed separate.

                                       7

<PAGE>

     i.   All of the building improvements upon the Real Estate which are of
insurable character will be kept insured by financially sound and reputable
insurers against loss or damage by fire, explosion and other hazards customarily
insured against by extended coverage for the full insurance value of the
property insured and in any event an amount sufficient to prevent the owner
thereof from becoming a co-insurer, the proceeds thereto to be paid to Lender to
satisfy the balance owing on the Note, including accrued interest, at the time
of the loss, the remainder of the insurance proceeds to be payable to the
Borrower. If the proceeds of the insurance together with such other funds as are
available to Borrower are sufficient to pay for the restoration of the premises,
Borrower and Lender shall negotiate in good faith for the application of such
funds to such restoration. Borrower agrees to deliver certificates showing
compliance with these insurance requirements. Borrower will maintain, with
financially sound and reputable insurers, insurance against other hazards and
risks including Workmen's Compensation Insurance, if appropriate.

     j.   Borrower will give Lender prior notice, in writing, of any public
hearing or meeting before any administrative or other public agency which may,
in any manner, affect the Real estate or chattels pledged as security hereunder.

     k.   Borrower agrees that it will at all times during the term of the Loan
comply fully with all applicable local, state and federal laws, rules and
regulations relating to the sale, use or upon the Real Estate.

     l.   The Borrower further agrees to provide information, and execute and
deliver any and all additional documents and instruments as may be reasonably
requested by Lender, its Assigns or Counsel, and CSA including by not limited
to:

     (i)    Executing the SBA Form 159 "Compensation Agreement".

     (ii)   Displaying the SBA Form 722 "Equal Opportunity" Poster".

     (iii)  Executing Standby Agreement on SBA Form 155 of Steven Tsengas in the
            amount of $150,000.00 and all accrued and future interest thereon

     (iv)   Providing information as required of the Lender by the SBA for its
            annual reporting requirements.

     (v)    Executing SBA Form 160, "Resolution of the Board of Directors" and a
            Certificate of Good Standing with copy of the Articles of
            Incorporation.

     (vi)   Providing Lease satisfactory to Lender on the premises located at
            1300 East Street, Fairport

                                       8
<PAGE>

             Harbor, Ohio, for a period of ten (10) years, including options.

     m.   Lender must certify on form submitted by SBA as to whether or not
Federal Flood Insurance is required.  If insurance is required, Borrower must
purchase and maintain Federal Flood Insurance in amounts and coverages equal to
the lesser of the outstanding principal balance of the Loan, the value of the
property to be insured or the maximum limit of coverage available.
Notwithstanding, if Flood Insurance becomes required during the life of the
Loan, Borrower must purchase same.  Failure to maintain any required Flood
Insurance will cause the Borrower to become ineligible for any further flood
disaster assistance.

     n.   Borrower shall maintain a minimum cashflow ratio or 1.20 starting in
fiscal year 1994.  The ratio is to be tested quarterly in the first year of this
agreement and annually thereafter.  Basis for calculation shall be the preceding
period's net income or loss, plus depreciation expense, plus interest expense,
less distributions, divided by all required principal and interest payments for
the subsequent period.

     o.   Borrower shall maintain an adjusted tangible net worth of $180,000.00
at fiscal year end 12/31/94, $280,000.00 at 12/31/95 and $380,000.00 at
12/31/96, $480,000.00 at 12/31/97 $580,000.00 at 12/31/98 and thereafter.
Tangible net worth shall be defined as net worth minus intangible assets as
defined by "Generally Accepted Accounting Principals," minus loans and
receivables from related parties, shareholders and affiliates, plus subordinated
debt.

     p.   Borrower shall provide and maintain hazard insurance (fire and
extended coverage), including theft, in an amount of ONE HUNDRED SEVENTY FIVE
THOUSAND DOLLARS ($175,000.00)  to cover the pledged collateral, or proceeds
therefrom, in a form and with an insurance company satisfactory to Lender, with
loss payable clause on the personal property and New York Standard Mortgage
Clause or its equivalent on real estate to Lender.

     q.   While the outstanding principal balance of the loan is TWO HUNDRED
THOUSAND DOLLARS ($200,000.00) or more, Borrower shall provide Lender a "review"
year-end financial statement of the Borrower prepared by an independent public
accountant within ninety (90) days, of the close of Borrower's fiscal year,
ending December 31st.

     r.   Borrower shall inject the sum of FORTY TWO THOUSAND DOLLARS
($42,000.00) prior to any disbursement of this loan, in

                                       9
<PAGE>

the form of cash or kind, acceptable to SBA; if any of said funds are loaned,
repayment terms must be for a term equal, at least, to the terms of this
agreement, and be subordinate to liens securing this loan. If any portion of
said funds are borrowed, the Lender will supply to SBA District Director copies
of debt instruments. This injection may not be repaid at a rate faster than the
SBA debenture.

12.  NEGATIVE COVENANTS.
     -------------------

     Until payment in full of the Note and performance of all the obligations of
this Agreement:

     a.   Borrower will not, without the prior written consent of Lender or SBA:

     (i)  (if Borrower is a corporation) declare or pay any dividend or make
any distribution upon its capital stock, or consolidate, or merge with any other
company, or give any preferential treatment, make any advance, directly or
indirectly; by way of loan, gift, bonus, or otherwise, to any company directly
or indirectly controlling or affiliated with or controlled by Borrower, or any
other company, or to any officer, director or employee of Borrower, or of any
other company, or to any officer, director or employee of Borrower, or of any
such company,

     (ii) (if Borrower is a partnership or individual) make any distribution of
assets of the business of Borrower, other than treatment, make any advance,
directly or indirectly, by way of loan, gift, bonus or otherwise, to any partner
or any of its employees, or to any company directly or indirectly controlling or
affiliated with or controlled by Borrower, or any other company.

     b.   Borrower shall not sell, convey, lease, hypothecate, or otherwise
dispose of any of its fixed assets, both realty or chattels, without the prior
written consent of Lender or SBA.

     c.   Borrower will not, prior to payment in full of the indebtedness
evidenced by the SBA Loan Note, without prior written consent of the holder of
the Note, pledge, mortgage, or otherwise cause or permit to be encumbered in any
manner whatsoever, any of Borrower's property or assets, whether then owned or
thereafter acquired; except by purchase money liens upon property acquired after
the date of the Note, and other liens upon such property at the time of the
acquisition thereof.

     d.   The Borrower will neither permit nor suffer to exist without prior
written SBA consent any material change in the project's plans and/or
specifications submitted to the SBA in order to induce the SBA to guaranty the
Debenture to be issued by
                                      10












<PAGE>

the Lender as per the SBA Guaranty. Material change will include any significant
variance in the accepted plans and specifications, increased to contract prices,
and/or additional financial obligations with respect to the construction and
Acquisition Assets.

     e.   During the term of the Loan, neither the Borrower nor its affiliates
nor its principal nor its close associates will acquire either directly or
indirectly an ownership position or interest in the Lender in excess of 10% of
the votes or shares of Lender, its successors or assigns. If this should occur,
the debenture shall immediately become due and payable.

     f.   If during the term of the loan, Borrower shall effect a change of
ownership or control of the business without prior written consent of SBA, which
consent shall not be unreasonably withheld, then and in that event, all
outstanding obligations may be accelerated and payment thereof called for by SBA
and Lender.

13.  EVENTS OF DEFAULT.
     ------------------

     The principal indebtedness evidenced by the Note or the unpaid balance
thereof at the time outstanding, shall be due and payable at the election of the
Lender if any one or more of the following events (herein called "Events of
Default") shall occur for any reason whatsoever, and whether such occurrence
shall be voluntary, involuntary, or come about to be effected by operation of
law, or pursuant to or in compliance with any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body:

     a.   Default shall be made in payment of any principal or interest on the
Note when due and payable, and such default shall be continued for a period of
thirty (30) days; or

     b.   Default shall be made in the performance or observance of any of the
covenants or agreements contained in Articles 11, 12 or 13 hereof, or of any
other provision of the Note, Mortgage, or the Security Agreement; or

     c.   Any representation or warranty made by the Borrower herein or any
statement or representations made in any certificate statement, or opinion
delivered pursuant hereto shall prove to have been incorrect in any material
respect as of the date when made; or

     d.   Any obligations of the Borrower for the payment of borrowed money
(other than its' obligations hereunder or under the Note) shall not be paid at
its maturity or any such obligations shall become or be declared, pursuant to
the terms thereof, to be due and payable prior to the express maturity thereof
by reason of default or other violations of the terms thereof; or

                                      11

<PAGE>

     e.   Default shall be made in the performance or observance of any of the
other covenants or agreements by (a), (b), (c), or (d) above, and such default
shall have continued for a period of thirty (30) days after notice thereof to
the Borrower by Lender; or

     f.   Borrower shall admit in writing its inability to pay its debts
generally as they become due, make an assignment for the benefit of creditors,
file a petition in bankruptcy, be adjudicated insolvent or bankrupt, petition
or apply to any tribunal for the appointment of any receiver or trustee
therefore or of any substantial part of its property or commence any proceedings
under any arrangement, readjustment or debt, or statute of any jurisdiction,
whether now or hereafter in effect; or there is commenced against Borrower any
such proceedings which remains undismissed for a period of thirty (30) days; or

     g.   Borrower by any act indicates its consent to, approval or
acquiescence in any proceeding or in the appointment of any receiver or of any
trustee for Borrower with respect to a substantial part of its property.

14.  EXPENSES OF COLLECTION OR ENFORCEMENT.
     --------------------------------------

     The Borrower agrees, if at any time that Borrower defaults on any provision
of this Loan Agreement, to pay the Lender or its assigns, in addition to any
other amounts that may be due from the Borrower, an amount equal to the costs
and expenses of collection, enforcement or correction or waiver of the default
incurred by the Lender or its assigns in such collection, enforcement,
correction or waiver of default.

15.  WAIVER OF NOTICE.
     -----------------

     The Borrower and Guarantors hereby expressly waive any requirement for
presentation, demand, protest, notice of protest or other notice of dishonor of
any kind, other than the notice specifically provided.

16.  NOTICES.
     --------

     All notices, consents, requests, demands, and other communications
hereunder shall be in writing and shall be deemed to have been duly given to a
party hereto if mailed by certified mail, prepaid, to Lender at its address set
forth at the beginning of this Agreement, and to Borrower at the address set
forth at the beginning of this Agreement, and to Borrower at the address set
forth in the Note or at such other addresses as any party may have designated in
writing to any other party hereto.

17.  SURVIVAL OF REPRESENTATIONS AND WARRANTIES.
     -------------------------------------------

     All agreements, representations and warranties contained herein shall
survive the execution and delivery of this

                                      12
<PAGE>

Agreement, the Note, the Security Agreements, and the Mortgage, any
investigation at any time made by the Lender or on its behalf, and any sale or
transfer of the Note and Mortgage.

18.  CONSTRUCTION AND AMENDMENT.
     ---------------------------

     This Loan Agreement constitutes the entire agreement between the parties
pertaining to the subject matter hereof and supersedes all prior and
contemporaneous agreements and understandings of the parties in connection
therewith, except with reference to the Authorization and Debenture Guaranty
Agreement executed the 13th day of September, 1994, which terms and conditions
are incorporated herein by reference. This Agreement may not be changed, amended
or terminated orally but only by an agreement in writing and executed by Lender
or its assigns, and the Borrower. It is understood that any such change or
amendments would require the prior written consent of SBA.

19.  PAYMENT.
     --------

     The Borrower shall make payments to the Lender in accordance with the terms
and conditions and instructions contained in the Central Servicing Agent
Agreement.

20.  COUNTERPARTS.
     -------------

     This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

21.  NO WAIVER: REMEDIES CUMULATIVE.
     -------------------------------

     No failure or delay on the part of the Lender in exercising any power or
right hereunder, or under the Note or Mortgage, shall operate as a waiver
thereof, except as specifically provided herein, nor shall any single or partial
exercise thereof or the exercise of any other right or power hereunder or under
the Note or Mortgage is intended to be exclusive of any other remedy, and each
and every such remedy shall be cumulative and shall be in addition to every
other remedy given hereunder or now or hereafter existing at law or in equity or
by statute or otherwise.

22.  EXECUTION BY ADDITIONAL PARTIES AND GUARANTOR.
     ----------------------------------------------

     When any party other than those named at the outset of this Agreement join
in the execution thereof, they have done so for the purpose of consenting to all
of the terms and conditions hereof and agree by such execution to be bound
hereby. Any party who has signed this Agreement as Guarantor shall be deemed to
have guaranteed performance by Borrower of all of its obligations hereunder and
under the Note or Mortgage, and all such persons or entities who have signed as
Guarantor shall be deemed to have

                                      13

<PAGE>

made such guarantees unconditionally, and they shall be jointly and severally
liable for the performance by Borrower of all such obligations.

23.  OBLIGATIONS SURVIVE CLOSING.
     ----------------------------

     All obligations of Borrower and Guarantors under this Loan Agreement, and
under the Note, the Mortgage and the Security Agreements, which have not been
duly performed, paid and satisfied at the time of closing of the Loan, shall
survive the closing.

24.  GOVERNING LAW.
     --------------

     This Agreement and the Note, the Mortgage, the Security Agreement and the
Financing Statements shall be governed by and interpreted in accordance with the
laws of the State of Ohio.

25.  SUCCESSORS AND ASSIGNS.
     -----------------------

     This Agreement shall be binding upon the Borrower, its successors and
assigns, except that the Borrower may not assign or transfer its rights without
prior written consent of SBA. This Agreement shall inure to the benefit of the
Lender, its successors and assigns, and, hereof, all subsequent holders of the
Note.

SIGNED IN THE PRESENCE OF:              "BORROWER"

/s/ William J. DiPalma                  BY: /s/ Steven Tsengas
-------------------------------            ------------------------------
                                            President

/s/ William J. DiPalma                  AND: /s/ Evangelia S. Tsengas
-------------------------------             -----------------------------
                                            Secretary

                                        "LENDER"

/s/ William J. DiPalma                  BY: /s/ Bryon A. Pike
-------------------------------            ------------------------------
                                            President

/s/ William J. DiPalma                  AND: /s/ Norman Smyke
-------------------------------             -----------------------------
                                            Secretary

                                     14
<PAGE>

                                                      OMB Approval No. 3245-0201

[LOGO]                                                --------------------------
                                                             SBA LOAN NO.
                                                      --------------------------

                                                         CDC 753817 30 08 OH
                                                      --------------------------

                      SMALL BUSINESS ADMINISTRATION (SBA)
                                   GUARANTY

                                                                 March 10  ,1995
                                                                 ---------- ----

     In order to induce  U.S. Small Business Administration    , (hereinafter
                        --------------------------------------
                          (SBA or other Lending Institution)
called "Lender") to make a loan or loans, or renewal or extension thereof, to
SANAR PLASTIC DIVISION OF NAPRO, INC.
--------------------------------------------------------------------------------
____________________(hereinafter called "Debtor"), the Undersigned hereby
unconditionally guarantees to Lender, its successors and assigns, the due and
punctual payment when due, whether by acceleration or otherwise, in accordance
with the terms thereof, of the principal of and interest on and all other sums
payable, or stated to be payable, with respect to the note of the Debtor, made
by the Debtor to Lender, dated March 10, 1995
                         -------------------------------------------------------
__________________ in the principal amount of $  175,000.00     , with interest
                                              -----------------
at the rate of _____________________________ per cent per annum. Such note, and
the interest thereon and all other sums payable with respect thereto are
hereinafter collectively called "Liabilities." As security for the performance
of this guaranty the Undersigned hereby mortgages, pledges, assigns, transfers
and delivers to Lender certain collateral (if any), listed in the schedule on
the reverse side hereof. The term "collateral" as used herein shall mean any
funds, guaranties, agreements or other property or rights or interests of any
nature whatsoever, or the proceeds thereof, which may have been, are, or
hereafter may be, mortgaged, pledged, assigned, transferred or delivered
directly or indirectly by or on behalf of the Debtor or the Undersigned or any
other party to Lender or to the holder of the aforesaid note of the Debtor, or
which may have been, are, or hereafter may be held by any party as trustee or
otherwise, as security, whether immediate or underlying, for the performance of
this guaranty or the payment of the Liabilities or any of them or any security
therefor.

     The Undersigned waives any notice of the incurring by the Debtor at any
time of any of the Liabilities, and waives any and all presentment, demand,
protest or notice of dishonor, nonpayment, or other default with respect to any
of the Liabilities and any obligation of any party at any time comprised in the
collateral. The Undersigned hereby grants to Lender full power, in its
uncontrolled discretion and without notice to the undersigned, but subject to
the provisions of any agreement between the Debtor or any other party and Lender
at the time in force, to deal in any matter with the Liabilities and the
collateral, including, but without limiting the generality of the foregoing, the
following powers:

     (a)  To modify or otherwise change any terms of all or any of the
          Liabilities or the rate of interest thereon (but not to increase the
          principal amount of the note of the Debtor to Lender), to grant any
          extension or renewal thereof and any other indulgence with respect
          thereto, and to effect any release, compromise or settlement with
          respect thereto;

     (b)  To enter into any agreement of forbearance with respect to all or any
          part of the Liabilities, or with respect to all or any part of the
          collateral, and to change the terms of any such agreement;

     (c)  To forbear from calling for additional collateral to secure any of the
          Liabilities or to secure any obligation comprised in the collateral;

     (d)  To consent to the substitution, exchange, or release of all or any
          part of the collateral, whether or not the collateral, if any,
          received by Lender upon any such substitution, exchange, or release
          shall be of the same or of a different character or value than the
          collateral surrendered by Lender;

     (e)  In the event of the nonpayment when due, whether by acceleration or
          otherwise, of any Liabilities, or in the event of default in the
          performance of any obligation comprised in the collateral, to realize
          on the collateral or any part thereof, as a whole or in such parcels
          or subdivided interests as Lender may elect, at any public or private
          sale or sales, for cash or on credit or for future delivery, without
          demand, advertisement or notice of the time or place of sale or any
          adjournment thereof (the Undersigned hereby waiving any such demand,
          advertisement and notice to the extent permitted by law), or by
          foreclosure or otherwise, or to forbear from realizing thereon, all as
          Lender in its uncontrolled discretion may deem proper, and to purchase
          all or any part of the collateral for its own account at any such sale
          or foreclosure, such powers to be exercised only to the extent
          permitted by law.

     The obligations of the Undersigned hereunder shall not be released,
discharged or in any way affected, nor shall the Undersigned have any rights or
recourse against Lender, by reason of any action Lender may take or omit to
take under the foregoing powers.

     In case the Debtor shall fail to pay all or any part of the Liabilities
when due, whether by acceleration or otherwise, according to the terms of said
note, the Undersigned, immediately upon the written demand of Lender, will pay
to Lender the amount due and unpaid by the Debtor as aforesaid, in like manner
as if such amount constituted the direct and primary obligation of the
Undersigned. Lender shall not be required, prior to any such demand on, or
payment by, the Undersigned, to make any demand upon or pursue or exhaust any of
its rights or remedies against Debtor or others with respect to the payment of
any of the Liabilities, or to pursue or exhaust any of its rights or remedies
with respect to any part of the collateral. The Undersigned shall have no right
of subrogation whatsoever with respect to the Liabilities or the collateral
unless and until Lender shall have received full payment of all the Liabilities.
<PAGE>

     The obligations of the Undersigned hereunder, and the rights of Lender in
the collateral, shall not be released, discharged or in any way affected, nor
shall the Undersigned have any rights against Lender; by reason of the fact that
any of the collateral may be in default at the time of acceptance thereof by
Lender or later; nor by reason of the fact that a valid lien in any of the
collateral may not be conveyed to, or created in favor of, Lender; nor by reason
of the fact that any of the collateral may be subject to equities or defenses or
claims in favor of others or may be invalid or defective in any way; nor by
reason of the fact that any of the Liabilities may be invalid for any
reason whatsoever; nor by reason of the fact that the value of any of the
collateral, or the financial condition of the Debtor or of any obligor under or
guarantor of any of the collateral, may not have been correctly estimated or may
have changed or may hereafter change; nor by reason of any deterioration, waste,
or loss by fire, theft, or otherwise of any of the collateral, unless such
deterioration, waste, or loss be caused by the willful act or willful failure to
act of Lender.

     The Undersigned agrees to furnish Lender, or the holder of the aforesaid
note of the Debtor, upon demand, but not more often than semiannually, so long
as any part of the indebtedness under such note remains unpaid, a financial
statement setting forth, in reasonable detail, the assets, liabilities, and net
worth of the Undersigned.

     The Undersigned acknowledges and understands that if the Small Business
Administration (SBA) enters into, has entered into, or will enter into, a
Guaranty Agreement, with Lender or any other lending institution, guaranteeing a
portion of Debtor's Liabilities, the Undersigned agrees that it is not a
coguarantor with SBA and shall have no right to contribution against SBA. The
Undersigned further agrees that all liability hereunder shall continue
notwithstanding payment by SBA under its Guaranty Agreement to the other lending
institution.

     The term "Undersigned" as used in this agreement shall mean the signer or
signers of this agreement, and such signers, if more than one, shall be jointly
and severally liable hereunder.  The Undersigned further agrees that all
liability hereunder shall continue notwithstanding the incapacity, lack of
authority, death, or disability of any one or more of the Undersigned, and that
any failure by Lender or its assigns to file or enforce a claim against the
estate of any of the Undersigned shall not operate to release any other of the
Undersigned from liability hereunder. The failure of any other person to sign
this guaranty shall not release or affect the liability of any signer hereof.


                                             /s/ Steve Tsengas
                                             -----------------------------------
                                             STEVE TSENGAS

                                             /s/ Nicholas Tsengas
                                             -----------------------------------
                                             NICHOLAS TSENGAS

                                             /s/ Konstantine Tsengas
                                             -----------------------------------
                                             KONSTANTINE TSENGAS

_____________
     NOTE.--Corporate guarantors must execute guaranty in corporate name, by
duly authorized officer, and seal must be affixed and duly attested; partnership
guarantors must execute guaranty in firm name, together with signature of a
general partner. Formally executed guaranty is to be delivered at the time of
disbursement of loan.

                    (LIST COLLATERAL SECURING THE GUARANTY)