<PAGE>
                                                                 EXHIBIT 10.44
BANKONE.
                                       
                                 LOAN AGREEMENT
 
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<S>               <C>         <C>           <C>        <C>      <C>          <C>         <C>       <C>
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    Principal     Loan Date    Maturity     Loan No     Call    Collateral    Account    Officer   Initials
  $9,000,000.00    10-30-97   10-30-2000               001113      328       2992911044   00410
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 References 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.
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Borrower: COLORADO MEDTECH, INC., A COLORADO CORPORATION; ET. AL.
          6175 LONGBOW DRIVE
          BOULDER, CO 80301

Lender:   Bank One, Colorado, NA
          Boulder
          1125 17th Street
          Denver, CO 80217
     
THIS LOAN AGREEMENT between COLORADO MEDTECH, INC., A COLORADO CORPORATION 
RELA, INC., A COLORADO CORPORATION and NOVEL BIOMEDICAL, INC., A MINNESOTA 
CORPORATION (referred to in this Agreement individually and collectively as 
"Borrower") and Bank One, Colorado, NA referred to in this Agreement as 
"Lender") is made and executed as of October 30, 1997.  This Agreement 
governs all loans, credit facilities and/or other financial accommodations 
described herein and, unless otherwise agreed to in writing by Lender and 
Borrower, all other present and future loans, credit facilities and other 
financial accommodations provided by Lender to Borrower.  All such loans, 
credit facilities and other financial accommodations, together with all 
renewals, extensions and modifications thereof, 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; and (b) 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 October 30, 1997, and shall 
continue thereafter until all Loans and other obligations owing by Borrower 
to Lender hereunder have been paid in full and Lender has no commitments or 
obligations to make further Advances under the Loans to Borrower.

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 as 
adopted in the State of Colorado.  All references to dollar amounts shall 
mean amounts in lawful money of the United States of America.

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

<PAGE>

     time to time.

     ACCOUNT.  The word "Account" means a trade account receivable of Borrower
     for goods sold or leased or for services rendered by Borrower in the
     ordinary course of its business.

     ACCOUNT DEBTOR.  The words "Account Debtor" mean the person or entity
     obligated upon an Account.

     ADVANCE.  The word "Advance" means any advance or other disbursement of
     Loan proceeds under this Agreement.

     BORROWER.  The word "Borrower" means individually and collectively COLORADO
     MEDTECH, INC., A COLORADO CORPORATION, RELA, INC., A COLORADO CORPORATION
     and NOVEL BIOMEDICAL, INC., A MINNESOTA CORPORATION and all other persons
     and entities signing Borrowers' Note.

     BORROWING BASE.  The words "Borrowing Base" mean AS DETERMINED BY LENDER
     FROM TIME TO TIME, THE LESSER OF (A) $5,000,000.00 UNTIL 10/30/98; (B)
     $7,000,000.00 FROM 10/31/98 UNTIL 10/30/99; (C) $9,000,000.00 FROM 10/3l/99
     UNTIL 10/30/2000 OR (D) THE SUM OF (i) 80% EIGHTY PERCENT OF THE AGGREGATE
     AMOUNT OF ELIGIBLE ACCOUNTS; PLUS (ii) 50% FIFTY PERCENT OF THE AGGREGATE
     AMOUNT OF ELIGIBLE INVENTORY WHICH FIGURE CANNOT EXCEED 25% TWENTY-FIVE
     PERCENT OF MARGINED RECEIVABLES.  In determining the amount of the
     Borrowing Base, all Eligible Accounts and Eligible Inventory of all
     Borrowers shall be included.

     COLLATERAL.  The word "Collateral" means and includes without limitation
     all property and assets granted as collateral for any Loan, whether real or
     personal property, whether granted directly or indirectly, whether granted
     now of 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
     receipt, 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.

     COMMITTED SUM.  The words "Committed Sum" mean an amount equal to
     $9,000,000.00.

     ELIGIBLE ACCOUNTS.  The words "Eligible Accounts" mean, at any time, all of
     Borrower's Accounts which contain terms and conditions acceptable to Lender
     and in which Lender has a first lien security interest, less the amount of
     all returns, discounts, credits, and offsets of any nature; provided,
     however, unless otherwise agreed to by Lender in writing, Eligible Accounts
     do not include:

          (a)  Accounts with respect to which the Account Debtor is an officer,
          an employee or agent of Borrower and to which the Account Debtor is a
          subsidiary of, or affiliated with or related to Borrower or its
          shareholders, officers, or directors.

<PAGE>

          (b)  All Accounts with respect to which Borrower has furnished a
          payment and/or performance bond and that portion of any Accounts for
          or representing retainage, if any, until all prerequisites to the
          immediate payment of such retainage have been satisfied.

          (c)  Accounts with respect to which goods are placed on consignment or
          subject to a guaranteed sale or other terms by reason of which the
          payment by the Account Debtor may be conditional.

          (d)  Accounts with respect to which the Account Debtor is not a
          resident of, or whose principal place of business is located outside
          of, the United States or its territories, except to the extent such
          Accounts are supported by insurance, bonds or other assurances
          satisfactory to Lender in its sole and absolute discretion.

          (e)  Accounts with respect to which Borrower is or may become liable
          to the Account Debtor for goods sold or services rendered by the
          Account Debtor to Borrower.

          (f)  Accounts which are subject to dispute, counterclaim, or setoff.

          (g)  Accounts with respect to which all goods have not been shipped or
          delivered, or all services have not been rendered, to the Account
          Debtor.

          (h)  Accounts with respect to which Lender, in its sole discretion,
          deems the creditworthiness or financial condition of the Account
          Debtor to be unsatisfactory.

          (i)  Accounts of any Account Debtor who has filed or has had filed
          against it a petition in bankruptcy or an application for relief under
          any provision of any state or federal bankruptcy, insolvency, or
          debtor-in-relief acts; or who has had appointed a trustee, custodian,
          or receiver for the assets of such Account Debtor; or who has made an
          assignment for the benefit of creditors or has become insolvent or
          fails generally to pay its debts (including its payrolls) as such
          debts become due.

          (j)  Accounts with respect to which the Account Debtor is the United
          States government or any department or agency of the United States,
          except to the extent an acknowledgment of assignment to Lender of any
          such Accounts in compliance with the Federal Assignment of Claims Act
          and other applicable laws has been received by Lender.

          (k)  Accounts which have not been paid or are not due and payable in
          full within (60) SIXTY days from the original invoice date.

     ELIGIBLE INVENTORY.  The words "Eligible Inventory" mean, at any time, the
     aggregate value of all of Borrower's Inventory as defined below except:

<PAGE>

          (a)  Inventory which is not owned by Borrower free and clear of all
          security interests, liens, encumbrances, end claims of third parties,
          except Lender's security interest.

          (b)  Inventory which Lender, in its sole and absolute discretion,
          deems to be obsolete, unsalable, damaged, defective, or unfit for
          further processing.

          (c)  Inventory which has been returned or rejected.

          (d)  Inventory which is held by others on consignment, sale on
          approval or otherwise riot in Borrower's physical possession, except
          upon the written consent of Lender.

          (e)  Inventory located outside the United States.

          (f)  WORK IN PROCESS OLDER THAN (60) DAYS.

     For purposes of this Agreement, Eligible Inventory shall be valued at the
     lower of cost or market value.

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

     GRANTOR.  The word "Grantor" means and includes each and all of the persons
     or entities granting a Security Interest in any Collateral for any of the
     Loans.

     GUARANTOR.  The word "Guarantor" means and includes without limitation,
     each and all of the guarantors, sureties, and accommodation parties for any
     of the Loans.

     INDEBTEDNESS.  The word "indebtedness" means the indebtedness evidenced by
     the Note, including all principal and accrued interest thereon, together
     with all other liabilities, costs and expenses for which Borrower is
     responsible under this Agreement or under any of the Related Documents. In
     addition, the word "Indebtedness" includes all other obligations, debts and
     liabilities, plus any accrued interest thereon, owing by Borrower, at any
     one or more of them, to Lender of any kind or character, now existing or
     hereafter arising, as well as all present and future claims by Lender
     against Borrower, of any one or more of them, and all renewals, extensions,
     modifications, substitutions and rearrangements of any of the foregoing;
     whether such Indebtedness arises by note, draft, acceptance, guaranty,
     endorsement, letter of credit, assignment, overdraft, indemnity agreement
     or otherwise; whether such Indebtedness is voluntary or involuntary. due or
     not due, direct or indirect, absolute or contingent, liquidated or
     unliquidated; whether Borrower may be liable individually or jointly with
     others; whether Borrower may be liable primarily or secondarily or as
     debtor, maker, comaker, drawer, endorser, guarantor, surety, accommodation
     party or otherwise.

<PAGE>

     INVENTORY.  The word "Inventory" means all raw materials and all tangible
     personal property, goods, merchandise and other personal property now owned
     or hereafter acquired by Borrower which is held for sale or lease in the
     ordinary course of Borrower's business, excluding all spare parts,
     packaging materials, supplies and any advertising costs capitalized into
     inventory.

     LENDER.  The word "Lender" means Bank One, Colorado, NA, its successors and
     assigns.

     LINE OF CREDIT.  The words "Line of Credit" mean the credit facility
     described in the Section titled "LINE OF CREDIT" below.

     NOTE.  The word "Note" means any and all promissory note or notes which
     evidence Borrower's Loans in favor of Lender, as well as any amendment,
     modification, renewal or replacement thereof.

     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 (1) not yet due, or (ii)
     being contested in good faith by appropriate proceedings and for which
     Borrower has established adequate reserves; (c) 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 any indebtedness
     permitted under this Agreement; and (d) liens and security interests which,
     as of the date of this Agreement, have been disclosed to and approved by
     the Lender in writing.

     RELATED DOCUMENTS.  The words "Related Documents" mean and include without
     limitation the Note and all 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 Note.

     SECURITY AGREEMENT.  The words "Security Agreement" mean and include
     without limitation any agreements, promises, covenants, arrangements,
     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 type of security interest, whether in the form of a lien,
     charge, mortgage, deed of trust, assignment, pledge, chattel mortgage,
     chattel trust, factor's lien, equipment trust, conditional sale, trust
     receipt, 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.

LINE OF CREDIT.  Subject to the other terms and conditions herein, Lender 
hereby establishes a Line of Credit for Borrower through which Lender agrees 
to make advances to Borrower from time to time from the effective date of 
this Agreement until the maturity date of the Note evidencing the Line of 
Credit, provided the aggregate amount of such advances outstanding at any 
time does not 

<PAGE>

exceed the lesser of the amount equal to the Borrowing Base or an amount 
equal to the Committed Sum.  Within the foregoing limits, Borrower may 
borrow, partially or wholly prepay, and reborrow under this Agreement.

     BORROWING BASE COMPLIANCE.  If at any time the aggregate principal amount
     outstanding under the Line of Credit shall exceed the applicable Borrowing
     Base, Borrower shall pay to Lender an amount equal to the difference
     between the outstanding principal balance under the Line of Credit and the
     Borrowing Base.

     REPRESENTATIONS AND WARRANTIES CONCERNING ACCOUNTS.  With respect to the
     Accounts, Borrower represents and warrants to Lender: (a) Each Account
     represented by Borrower to be an Eligible Account for purposes of his
     Agreement conforms to the requirements of the definition of an Eligible
     Account; and (b) All Account information listed on reports and schedules
     delivered to Lender will be true and correct, subject to immaterial
     variance.

     REPRESENTATIONS AND WARRANTIES CONCERNING INVENTORY.  With respect to the
     Inventory, Borrower represents and warrants to Lender (a) All Inventory
     represented by Borrower to be Eligible Inventory for purposes of this
     Agreement conforms to the requirements of the definition of Eligible
     Inventory; (b) All Inventory values listed on schedules delivered to Lender
     will be true and correct, subject to immaterial variance; (c) The value of
     the Inventory will be determined on a consistent accounting basis; (d)
     Except as reflected in the Inventory schedules delivered to Lender, all
     Eligible Inventory is now and at all times hereafter will be of good and
     merchantable quality, free from defects; and (e) Lender, its assigns, or
     agents shall have the right at any time and at Borrower's expense to
     inspect and examine the Inventory and to check and test the same as to
     quality, quantity, value, and condition.

REPRESENTATIONS AND WARRANTIES.  Borrower represents and warrants to Lender, 
as of the date of this Agreement, as of the date of each request for an 
Advance, as of the date of any renewal, extension or modification of any 
Loan, and at all times any Loans or Lender's commitment to make Loans 
hereunder is outstanding:

     ORGANIZATION.  Borrower is a corporation which is duly organized, validly
     existing, and in good standing under the laws of the State of Colorado and
     is duly qualified and in good standing in all other 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.

     AUTHORIZATION.  The execution, delivery, and performance of this Agreement
     and all Related Documents to which Borrower is a party 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, of 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.  Borrower has all requisite power and authority to execute and
     deliver this Agreement and all other Related Documents to 

<PAGE>

     which Borrower is a party.

     FINANCIAL INFORMATION.  Each financial statement of Borrower supplied to
     Lender truly and completely discloses 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.

     LEGAL EFFECT.  This Agreement and all other Related Documents to which
     Borrower is a party constitute legal, valid and binding obligations of
     Borrower enforceable against Borrower in accordance with their respective
     terms, except as limited by bankruptcy, insolvency or similar laws of
     general application relating to the enforcement of creditors' rights and
     except to the extent specific remedies may generally be limited by
     equitable principles.

     PROPERTIES.  Except for Permitted Liens, Borrower is the sole owner of, 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
     six (6) years.

     COMPLIANCE.  Except as disclosed in writing to Lender (a) Borrower is
     conducting Borrower's businesses in material compliance with all applicable
     federal, state and local laws, statutes, ordinances, rules, regulations,
     orders, determinations and Court decisions, including without limitation,
     those pertaining to health or environmental matters. and (b) Borrower
     otherwise does not have any known material contingent liability in
     connection with the release into the environment, disposal or the improper
     storage of any toxic or hazardous substance or solid waste.

     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 in any one case or in the aggregate 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.  All tax returns and reports of Borrower that are or were required
     to be filed, have beer filed, and all taxes, assessments and other
     governmental charges have been paid in full, except those that have been
     disclosed in writing to Lender which are 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 and approved by
     Lender in writing, Borrower has not entered into any Security Agreements,
     granted a Security interest or permitted the filing or attachment of any
     Security Interests on or affecting any of the Collateral, except in favor
     of Lender.

<PAGE>

     LICENSES, TRADEMARKS AND PATENTS.  Borrower possesses and will continue to
     possess all permits, licenses, trademarks, patents and rights thereto which
     are needed to conduct Borrower's business and Borrower's business does not
     conflict with or violate any valid rights of others with respect to the
     foregoing.

     COMMERCIAL PURPOSES.  Borrower intends to use the Loan proceeds solely for
     business or commercial related purposes approved by Lender and such
     proceeds will not be used for the purchasing or carrying of "margin stock"
     as defined in Regulation U issued by the Board of Governors of the Federal
     Reserve System.

     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
     initialed steps to do so, (iii) no steps have been taken to terminate any
     such plan, and (iv) there are no unfunded liabilities other then 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 6175 LONGBOW DRIVE, BOULDER, CO 80301.  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 extending the Loans to Borrower. 
     Borrower further agrees. that the foregoing representations and warranties
     shall be continuing in nature and shall remain in full force and effect
     during the term of this Agreement.

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

     DEPOSITORY RELATIONSHIP.  Establish and maintain its primary operating
     account(s) with Lender.

     LITIGATION.  Promptly inform Lender in writing of (a) all material adverse
     changes in 

<PAGE>

     Borrower's financial condition, (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, and (c) the creation, occurrence of, assumption by Borrower of 
     any actual or contingent liabilities not permitted under this Agreement.

     FINANCIAL RECORDS.  Maintain its books and records in accordance with
     generally accepted accounting principles, applied on a consistent basis,
     and permit Lender to examine, audit and make and take away copies or
     reproductions of Borrower's books and records at all reasonable times.  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.

     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, income statement, and statement of changes
     in financial position for the year ended, audited by a certified public
     accountant satisfactory 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, ages of receivables and
     payables, inventory schedules, budgets, forecasts, 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 at all times with the following
     covenants and ratios: 

     CURRENT RATIO.  Maintain, at all times, a ratio of Liquid Assets plus
     inventory, to current liabilities less customer deposits, in excess of 1.40
     to 1.00.

     QUICK RATIO.  Maintain, at all times, a ratio of Liquid Assets to current
     liabilities in excess of 1.00 to 1.00.

     DEBT SERVICE COVERAGE.  Maintain, as of the end of each fiscal quarter, a
     ratio of (a) net income before taxes, plus interest, depreciation,
     amortization and depletion, less any Distributions for the 12 month period
     ending with such fiscal quarter, to (b) current maturities of long-term
     debt, plus current maturities of capital leases and interest expense for
     the following 12 month period, of not less than 2.00 to 1.0

     The financial covenants and ratios set forth in this paragraph shall be
     determined and 

<PAGE>

     calculated for all Borrowers on a consolidated basis and reference in 
     this paragraph to "Borrower" shall mean all "Borrowers."  For purposes of 
     this Agreement and to the extent the following terms are utilized in this 
     Agreement, the term "Tangible Net Worth" shall mean borrower's total 
     assets excluding all intangible assets (including, without limitation, 
     goodwill, trademarks, patents, copyrights, organization expenses, and 
     similar intangible items) less total liabilities excluding Subordinated 
     Debt.  The term 'Subordinated Debt' shall mean all indebtedness owing by 
     Borrower which has been subordinated by written agreement to all 
     indebtedness now or hereafter owing by Borrower to Lender, such agreement 
     to be in form and substance acceptable to Lender.  The term "Working 
     Capital" shall mean Borrower's Liquid Assets plus inventory, less current 
     liabilities.  The term "Liquid Assets" shall mean borrower's unencumbered 
     cash, marketable securities and accounts receivable net of reserves.  The 
     term "Cash Raw" shall mean not income after taxes, and exclusive of 
     extraordinary items, plus depreciation and amortization. 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 require with respect to
     Borrower's properties and operations, in form. amounts, coverages and with
     insurance companies reasonably acceptable to Lender.  Borrower, upon
     request of Lender, will deliver to Lender from time to from the policies or
     certificates of insurance in form satisfactory to Lender, including
     stipulations that coverages will not be cancelled or diminished without at
     least thirty (30) days' prior written notice to Lender.  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.

     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: $12,500.00 YEAR ONE, $17,500.00 YEAR TWO,
     $22,500.00 YEAR THREE.

     LOAN PROCEEDS.  Use all Loan proceeds solely for Borrower's business
     operations, unless specifically consented to the contrary by Lender in
     writing.

     TAXES, CHARGES AND LIENS.  Pay and discharge when due all of its
     indebtedness and 

<PAGE>

     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 its
     books adequate reserves with respect to such contested assessment, tax,
     charge, levy, lien. or claim in accordance with generally accepted
     accounting principles.  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 assessments,
     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 timely
     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.  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, all applicable
     environmental statutes, rules, regulations and ordinances and with all
     minimum funding standards and other requirements of ERISA and other laws
     applicable to Borrower's employee benefit plans.

     COMPLIANCE CERTIFICATE.  Unless waived in writing by Lender, provide Lender
     WITHIN (45) FORTY FIVE DAYS AFTER EACH CALENDAR QUARTER with a certificate
     executed by Borrower's chief financial officer, or other officer or person
     acceptable to Lender, (a) certifying that the representations and
     warranties set forth in this Agreement are true and correct as of the date
     of the certificate and that, as of the date of the certificate, no Event of
     Default exists under this Agreement, and (b) demonstrating compliance with
     all financial covenants set forth in this Agreement.

     ENVIRONMENTAL COMPLIANCE AND REPORTS.  Borrower shall comply in all
     respects with all federal, state and local environmental 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 on 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; and 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 

<PAGE>

     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.

     BORROWING BASE CERTIFICATE.  Within 45 days after each FISCAL QUARTER,
     Borrower shall deliver to Lender a borrowing base certificate, in form and
     detail satisfactory to Lender, along with such supporting documentation as
     Lender may request, including without limitation, an accounts receivable
     aging report and/or a list or schedule of Borrower's accounts receivable,
     inventory and/or equipment.

     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:
     
     MAINTAIN BASIC BUSINESS.  Engage in any business activities substantially
     different than those in which Borrower is presently engaged.  

     CONTINUITY OF OPERATIONS.  Cease operations, liquidate, dissolve or merge
     or consolidate with or into any other entity.

     INDEBTEDNESS.  Create, incur or assume additional indebtedness for borrowed
     money, including capital losses, or guarantee any indebtedness owing by
     others, other then (a) current unsecured trade debt incurred in the
     ordinary course of business, (b) indebtedness owing to Lender, (c)
     borrowings outstanding as of the date hereof and disclosed to Lender in
     writing, and (d) any borrowings otherwise approved by Lender in writing.

     LIENS.  Mortgage, assign, pledge, grant a security interest in or otherwise
     encumber Borrower's assets, except as allowed as a Permitted Lien.

     TRANSFER OF ASSETS.  Transfer, sell or otherwise dispose of any of
     Borrower's assets other than in the ordinary course of business.  

     CHANGE IN MANAGEMENT.  Permit a change in the senior executive or
     management personnel of Borrower.
     
     TRANSFER OF OWNERSHIP.  Permit the sale, pledge or other transfer of any
     ownership interest in Borrower.
     
     INVESTMENTS. Invest in, or purchase, create, form or acquire any interest
     in, any other enterprise or entity.
     
     LOANS.  Make any loans to any person or entity.

<PAGE>

     DIVIDENDS.  Pay any dividends on Borrower's capital stock or purchase,
     redeem, retire or otherwise acquire any of Borrower's capital stock or
     alter or amend Borrower's capital structure.

     AFFILIATES.  Enter into any transaction, including, without limitation, the
     purchase, sale, or exchange of property or the rendering of any service,
     with any Affiliate of Borrower, except in the ordinary course of and
     pursuant to the reasonable requirements of Borrower's business and upon
     fair and reasonable terms no less favorable than would be obtained in a
     comparable arm's length transaction with a person or entity not an
     Affiliate of Borrower.  As used herein, the term "Affiliate" means any
     individual or entity directly or indirectly controlling, controlled by or
     under common control with, another entity or individual.

CONDITIONS PRECEDENT TO ADVANCES.  Lender's obligation to make any Advances 
or to provide any other financial accommodations to or for the benefit of 
Borrower hereunder shall be subject to the conditions precedent that as of 
the date of such advance or disbursement and after giving effect thereto (a) 
all representations and warranties made to Lender in this Agreement and the 
Related Documents shall be true and correct as of and as if made on such 
date, (b) no material adverse change in the financial condition of Borrower 
or any Guarantor since the effective date of the most recent financial 
statements furnished to Lender, or in the value of any Collateral, shall have 
occurred and be continuing, (c) no event has occurred and is continuing, or 
would result from the requested advance or disbursement, which with notice or 
lapse of time, or both, would constitute an Event of Default, (d) no 
Guarantor has sought claimed or otherwise attempted to limit, modify or 
revoke such Guarantor's guaranty of any Loan, and (e) Lender has received all 
Related Documents appropriately executed by Borrower and all other proper 
parties.
               
ADDITIONAL PROVISIONS.  THE BORROWER WILL MAINTAIN A MINIMUM TANGIBLE NET 
WORTH OF NOT LESS THAN $12,000,000.00 THROUGH 06/30/98; $14,000,000.00 FROM 
07/01/98 THROUGH 06/30/99; $17,000,000.00 FROM 07/0l/99 THROUGH 06/30/2000 
(PLUS 75%) SEVENTY FIVE PERCENT OF NEW EQUITY CAPITAL IF APPLICABLE.

THE BORROWER WILL NOT PURCHASE, CREATE OR ACQUIRE A COMPANY WITH ANNUAL 
REVENUES GREATER THAT FIFTY (50%) PERCENT OF ITS (COLORADO MEDTECH, INC.) 
ANNUAL REVENUE, MEASURED AS OF ITS MOST RECENT FISCAL YEAR END, WITHOUT THE 
LENDER'S WRITTEN CONSENT.

BORROWER WILL NOT PURCHASE, CREATE OR ACQUIRE A COMPANY WHOSE VALUE IS 
GREATER THAN ITS (COLORADO MEDTECH, INC.) TANGIBLE NET WORTH, MEASURED AS OF 
ITS MOST RECENT QUARTER END, WITHOUT THE LENDER'S PRIOR WRITTEN CONSENT.

RIGHT OF SETOFF.  Unless a lien would be prohibited by law or would render a 
nontaxable account taxable, Borrower grants to Lender a contractual 
possessory 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 any 
other account), including 

<PAGE>

without limitation all accounts held jointly with someone else and all 
accounts Borrower may open in the future.  Borrower authorizes Lender, to the 
extent permitted by applicable law, to charge or setoff all sums owing on the 
Indebtedness against any and all such accounts.

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 any of the indebtedness.

     OTHER DEFAULTS.  Failure of Borrower, any Guarantor or any Grantor to
     comply with or to perform when due any other term, obligation, covenant or
     condition contained in this Agreement, the Note or in any of the other
     Related Documents, or failure of Borrower to comply with or to perform any
     other term, obligation, covenant or condition contained in any other
     agreement now existing or hereafter arising between Lender and Borrower.

     FALSE STATEMENTS.  Any warranty, representation or statement made or
     furnished to Lender under this Agreement or the Related Documents is false
     or misleading in any material respect.

     DEFAULT TO THIRD PARTY.  The occurrence of any event which permits the
     acceleration of the maturity of any indebtedness owing by Borrower, Grantor
     or any Guarantor to any third party under any agreement or undertaking.

     BANKRUPTCY OR INSOLVENCY.  If the Borrower, Grantor or any Guarantor: (i)
     becomes insolvent, or makes a transfer in fraud of creditors, or makes an
     assignment for the benefit of creditors, or admits in writing its inability
     to pay its debts as they become due; (ii) generally is not paying its debts
     as such debts become due; (iii) has a receiver, trustee or custodian
     appointed for, or take possession of, all or substantially all of the
     assets of such party or any of the Collateral, either in a proceeding
     brought by such party or in a proceeding brought against such party and
     such appointment is not discharged or such possession is not terminated
     within sixty (60) days after the effective date thereof or such party
     consents to or acquiesces in such appointment or possession; (iv) files a
     petition for relief under the United States Bankruptcy Code or any other
     present or future federal or state insolvency, bankruptcy or similar laws
     (all of the foregoing hereinafter collectively called "Applicable
     Bankruptcy Law") or an involuntary petition for relief is filed against
     such party under any Applicable Bankruptcy Law and such involuntary
     petition is not dismissed within sixty (60) days after the filing thereof,
     or an order for relief naming such party is entered under any Applicable
     Bankruptcy Law, or any composition, rearrangement, extension,
     reorganization or other relief of debtors now or hereafter existing is
     requested or consented to by such party; (v) fails to have discharged
     within a period of sixty (60) days any attachment, sequestration or similar
     writ levied upon any property of such party; or (vi) fails to pay within
     thirty (30) days any final money judgment against such party.

     LIQUIDATION, DEATH AND RELATED EVENTS.  If Borrower, Grantor or any
     Guarantor is an 

<PAGE>

     entity, the liquidation, dissolution, merger or consolidation of any 
     such entity or, if any of such parties is an individual, the death or 
     legal incapacity of any such individual.

     CREDITOR OF 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 Indebtedness, or by any
     governmental agency.

EFFECT OF AN EVENT OF DEFAULT.  If any Event of Default shall occur, Lender 
may, at its option, without further notice or demand, (a) terminate all 
commitments and obligations of Lender to make Loans to Borrower, if any, (b) 
declare all Loans and any other Indebtedness immediately due and payable, (c) 
refuse to advance any additional amounts under the Note or to provide any 
other financial accommodations under this Agreement, or (d) exercise all the 
rights and remedies provided in the Note or in any of the Related Documents 
or available at law, in equity, or otherwise; provided, however, if any Event 
of Default of the type described in the "Bankruptcy or Insolvency" subsection 
above shall occur, all Loans and any other Indebtedness shall automatically 
become due and payable, without any notice, demand or action by Lender, 
except as may be prohibited by applicable law, all of Lender's rights and 
remedies shall be cumulative end may be exercised singularly or concurrently. 
Election by tender 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.

     AMENDMENTS.  This Agreement, together with any Related Documents,
     constitutes the entire understanding and agreements 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 has been delivered to Lender and accepted
     by Lender in the State of Colorado.  Subject to the provisions on
     arbitration, this Agreement shall be governed by and construed in
     accordance with the laws of the State of Colorado without regard to any
     conflict of laws or provisions thereof.

     JURY WAIVER.  THE UNDERSIGNED AND LENDER (BY ITS ACCEPTANCE HEREOF) HEREBY
     VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO
     HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON
     CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG THE UNDERSIGNED AND LENDER
     ARISING OUT OF OR IN ANY WAY RELATED TO THIS DOCUMENT OR ANY OTHER RELATED
     DOCUMENT.  THIS PROVISION IS A MATERIAL INDUCEMENT TO LENDER TO PROVIDE THE
     FINANCING DESCRIBED HEREIN OR IN THE OTHER RELATED DOCUMENTS.

<PAGE>

     ARBITRATION.  Lender and Borrower agree that upon the written demand of
     either party, whether made before or after the institution of any legal
     proceedings, but prior to the rendering of any judgment in that proceeding,
     all disputes, claims and controversies between them, whether individual,
     joint, or class in nature, arising from this Agreement, any Related
     Document or otherwise, including without limitation contract disputes and
     tort claims, shall be arbitrated pursuant to the Commercial Rules of the
     American Arbitration Association.  Any arbitration proceeding held pursuant
     to this arbitration provision shall be conducted in the city nearest the
     Borrower's address having an AAA regional office, or at any other place
     selected by mutual agreement of the parties.  No act to take or dispose of
     any collateral shall constitute a waiver of this arbitration agreement or
     be prohibited by this arbitration agreement.  This arbitration provision
     shall not limit the right of either party during any dispute, claim or
     controversy to seek, use, and employ ancillary, provisional or preliminary
     rights and/or remedies, judicial or otherwise, for the purposes of
     realizing upon, preserving, protecting, foreclosing upon or proceeding
     under forcible entry and detainer for possession of, any real or personal
     property, and any such action shall not be deemed an election of remedies. 
     This includes, without limitation, obtaining injunctive relief or a
     temporary restraining order, invoking a power of sale under any deed of
     trust or mortgage, obtaining a writ of attachment, or imposition of a
     receivership, or exercising any rights relating to personal property,
     including taking or disposing of such property with or without judicial
     process pursuant to Article 9 of the Uniform Commercial Code, any disputes,
     claims, or controversies concerning the lawfulness or reasonableness of any
     act, or exercise of any right or remedy, concerning any Collateral,
     including any claim to rescind, reform, or otherwise modify any agreement
     relating to the Collateral, shall also be arbitrated; provided however that
     no arbitrator shall have the right or the power to enjoin or restrain any
     act of either party.  Judgment upon any award rendered by any arbitrator
     may be entered in any court having jurisdiction.  Nothing in this
     arbitration provision shall preclude either party from seeking equitable
     relief from a court of competent jurisdiction.  The statute of limitations,
     estoppel, waiver, laches and similar doctrines which would otherwise be
     applicable in an action brought by a party shall be applicable in any
     arbitration proceeding, and the commencement of an arbitration proceeding
     shall be deemed the commencement of any action for these purpose.  The
     Federal Arbitration Act (Title 9 of the United States Code) shall apply to
     the construction, interpretation, and enforcement of this arbitration
     provision.

     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.

     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.

<PAGE>

     COSTS AND EXPENSES.  Borrower agrees to pay upon demand all of Lender's
     expenses, including attorneys' fees, incurred in connection with the
     preparation, execution, enforcement, modification and collection of this
     Agreement or in connection with the Loans made pursuant to this Agreement. 
     Lender may hire one or more attorneys to help collect the indebtedness if
     Borrower does not pay, and Borrower will pay Lender's reasonable attorneys'
     fees.

     NOTICES.  All notices required to he given under this Agreement shall be
     given in writing, and shall be effective when actually delivered or when
     deposited with a notionally recognized overnight courier or deposited 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.  It 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.

     COUNTERPARTS.  This Agreement may be executed in one or more counterparts,
     each of which shall be deemed an original and all of which together shall
     constitute the same document.  Signature pages may be detached from the
     counterparts to a single copy of this Agreement to physically form one
     document.

     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 covenants made by Borrower
     in this Agreement or in any certificate or other instrument delivered by
     Borrower to Lender under this Agreement shall be considered to have been
     relied upon by Lender and will survive the making of the Loan and delivery
     to Lender of the Related Documents, regardless of any investigation made by
     Lender or on Lender's behalf.

     TIME IS OF THE ESSENCE.  Time is of the essence in the performance of this
     Agreement.

     WAIVER.  Lender shall not be deemed to have waived any rights under this
     Agreement unless such waiver is given in writing and signed by Lender.  No
     delay or omission on the part of 

<PAGE>

     Lender in exercising any right shall operate as a waiver of such right to 
     any other right.  A waiver by Lender of a provision of this Agreement 
     shall not prejudice or constitute a waiver of Lender's right otherwise to 
     demand strict compliance with that provision or any other provision of 
     this Agreement.  No prior waiver by Lender, nor any course of dealing 
     between Lender and Borrower, or between Lender and any Grantor or 
     Guarantor, shall constitute a waiver of any of Lender's rights or of any 
     obligations of Borrower or of any Grantor as to any future transactions.  
     Whenever the consent of Lender is required under this Agreement, the 
     granting of such consent by Lender in any instance shall not constitute 
     continuing consent in subsequent instances where such consent is required, 
     and in all cases such consent may be granted or withheld in the sole 
     discretion of Lender.

EACH BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS LOAN 
AGREEMENT.  AND EACH BORROWER AGREES TO ITS TERMS.  THIS AGREEMENT IS 
EXECUTED AS OF THE DATE SET FORTH ABOVE.

BORROWER:

COLORADO MEDTECH, INC., A COLORADO CORPORATION

By: /s/ John V. Atanasoff
   -----------------------------------
    JOHN V. ATANASOFF, PRESIDENT & CEO

By: /s/ Bruce L. Arfmann
   -----------------------------------
    BRUCE L. ARFMANN, CFO


RELA, INC., A COLORADO CORPORATION

By: /s/ John V. Atanasoff
   -----------------------------------
    JOHN V. ATANASOFF, CHAIRMAN OF THE BOARD

By: /s/ Bruce L. Arfmann
   -----------------------------------
    BRUCE L. ARFMANN, CFO


NOVEL BIOMEDICAL, INC., A MINNESOTA CORPORATION

By: /s/ John V. Atanasoff
   -----------------------------------
     JOHN V. ATANASOFF, CHAIRMAN OF THE BOARD

By: /s/ Bruce L. Arfmann
   -----------------------------------
     BRUCE L. ARFMANN, CFO

<PAGE>

LENDER:

Bank One, Colorado NA

By: /s/ Eric R. Long
   -----------------------------------
     Authorized Officer

-----------------------------------------------------------------
LASER PRO, Reg U.S. Pat. & T.M. Off., Ver 3.23(c) 1997 CFI ProServices, Inc. All
rights reserved (CO-C40 CD625633.LNC3.OVL)



<PAGE>

BANKONE.
                            COMMERCIAL SECURITY AGREEMENT

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
<S>             <C>         <C>           <C>      <C>     <C>         <C>         <C>       <C>
  Principal     Loan Date    Maturity     Loan No   Call   Collateral   Account    Officer   Initials  
$9,000,000.00   10-30-97    10-30-2000             001113      328     2992911044   00410
-------------------------------------------------------------------------------------------------------
 References 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>

Borrower:  COLORADO MEDTECH, INC., A COLORADO    Lender:  Bank One, Colorado, NA
           CORPORATION; ET. AL.                           Boulder
           6175 LONGBOW DRIVE                             1125 17th Street
           BOULDER, CO 80301                              Denver, CO  80217


Grantor:       COLORADO MEDTECH, INC., A COLORADO CORPORATION, RELA, INC., A
               COLORADO CORPORATION and NOVEL BIOMEDICAL. INC., A MINNESOTA
               CORPORATION


THIS COMMERCIAL SECURITY AGREEMENT IS ENTERED INTO BY COLORADO MEDTECH, INC., A
COLORADO CORPORATION, RELA, INC., A COLORADO CORPORATION AND NOVEL BIOMEDICAL,
INC., A MINNESOTA CORPORATION (REFERRED TO BELOW INDIVIDUALLY AND COLLECTIVELY
AS "GRANTOR") FOR THE BENEFIT OF BANKONE, COLORADO, NA REFERRED TO BELOW AS 
"LENDER").  FOR VALUABLE CONSIDERATION, GRANTOR GRANTS TO LENDER A SECURITY
INTEREST IN THE COLLATERAL TO SECURE THE INDEBTEDNESS AND AGREES THAT LENDER
SHALL HAVE THE RIGHTS STATED IN THIS AGREEMENT WITH RESPECT TO THE COLLATERAL,
IN ADDITION TO ALL OTHER RIGHTS WHICH LENDER MAY HAVE BY LAW.

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 as adopted in
the State of Colorado ("Code"). All references to dollar amounts shall mean
amounts in lawful money of the United States of America.

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

     BORROWER.  The word "Borrower" means each and every person or entity
     signing the Note, including without limitation COLORADO MEDTECH, INC., A
     COLORADO CORPORATION, RELA, INC., A COLORADO CORPORATION and NOVEL
     BIOMEDICAL. INC., A MINNESOTA CORPORATION.

     COLLATERAL.  The word "Collateral" means the following described property
     of Grantor, whether now owned or hereafter acquired, whether now existing
     or hereafter arising, and wherever located:

<PAGE>

     ALL INVENTORY, CHATTEL PAPER, ACCOUNTS, EQUIPMENT AND GENERAL INTANGIBLES

     In addition, the word "Collateral" Includes all the following, whether now
     owned or hereafter acquired, whether now existing or hereafter arising, and
     wherever located:

          (a) All attachments, accessions, accessories, tools, ports. supplies,
          increases, and additions to and all replacements of and substitutions
          for any property described above.

          (b) All products and produce of any of the property described in this
          Collateral section.

          (c) All proceeds (including, without limitation, insurance proceeds)
          from the sale, lease, destruction, loss, or other disposition of any
          of the property described in this Collateral section.

          (d) All records and data relating to any of the property described in
          this Collateral section, whether in the form of a writing, photograph 
          microfilm. microfiche, or electronic media, together with all of
          Grantor's right, title, and interest in and to all computer software
          required to utilize, create, maintain, and process any such records or
          data on electronic media.

     EVENT OF DEFAULT.  The words "Event of Default" mean and include any of the
     Events of Default set forth below in the section titled "Events of
     Default."

     GRANTOR.  The word "Grantor" means COLORADO MEDTECH, INC., A COLORADO
     CORPORATION, RELA, INC., A COLORADO CORPORATION and NOVEL BIOMEDICAL, INC.,
     A MINNESOTA CORPORATION.

     GUARANTOR.  The word "Guarantor" means and includes without limitation,
     each and all of the guarantors, sureties, and accommodation parties in
     connection with the Indebtedness.

     INDEBTEDNESS.  The word "Indebtedness" means the Indebtedness evidenced by
     the Note, including all principal and accrued interest thereon, together
     with all other liabilities, costs and expenses for which Grantor is
     responsible under this Agreement or under any of the Related Documents.

     LENDER.  The word "Lender" means Bank One, Colorado, NA, its successors and
     assigns (which is a secured party under the Code).

     NOTE.  The word "Note" means the promissory note dated October 30, 1997, in
     the principal amount of $9,000,000.00 from Borrower to Lender, together
     with all renewals of, extensions of, modifications of, refinancings of,
     consolidations of and substitutions for such promissory note.

<PAGE>

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

GRANTOR'S REPRESENTATIONS AND WARRANTIES.  Grantor warrants that: (a) Grantor
has the full right, power and authority to enter into this Agreement and to
pledge the Collateral to Lender; (b) Grantor has established adequate means of
obtaining from Borrower on a continuing basis information about Borrower's
financial condition; and (c) Lender has made no representation to Grantor about
Borrower or Borrower's creditworthiness.

GRANTOR'S WAIVERS.  Grantor waives notice of the incurring of any Indebtedness
and waives all requirements of presentment, protest, demand, and notice of
dishonor or nonpayment to Grantor, Borrower, or any other party to the
indebtedness or the Collateral.  Lender may do any of the following with respect
to any obligation of any Borrower, without first notifying or obtaining the
consent of Grantor: (a) grant any extension of time for any payment, (b) grant
any renewal, (c) permit any modification of payment terms or other terms, (d)
release Borrower or any Guarantor from all or any portion of the Indebtedness,
or (e) exchange or release all or any portion of the Collateral or other
security for all or any portion of the Indebtedness.  No such act or failure to
act shall affect Lender's rights against Grantor or the Collateral.

OBLIGATIONS OF GRANTOR.  Grantor represents, warrants and covenants to Lender as
follows:

     PERFECTION OF SECURITY INTEREST.  Grantor agrees to execute such financing
     statements and to take whatever other actions are requested by Lender to
     perfect and continue Lender's security interest in the Collateral.  Upon
     request of Lender, Grantor will deliver to Lender any and all of the
     documents evidencing or constituting the Collateral, and Grantor will note
     Lender's interest upon any and all chattel paper if not delivered to Lender
     for possession by Lender.  Grantor hereby irrevocably appoints Lender as
     its attorney-in-fact for the purpose of executing any documents necessary
     to perfect or to continue the security interest granted in this Agreement.
     Lender may at any time, and without further authorization from Grantor,
     file a carbon, photographic or other reproduction of any financing
     statement, or of this Agreement for use as a financing statement.  Grantor
     will reimburse Lender for all expenses for the perfection and the
     continuation of the perfection of its security interest in the Collateral.
     Grantor has disclosed to Lender all tradenames and assumed names currently
     used by Grantor, all tradenames and assumed names used by Grantor within
     the previous six (6) years and all of Grantor's current business locations.
     Grantor will notify Lender in writing at least thirty (30) days prior to
     the occurrence of any of the following: (i) any changes in Grantor's name,
     tradename(s) or assumed name(s), or (ii) any change in Grantor's business
     location(s) or the location of any of the Collateral.

     NO VIOLATION.  The execution and delivery of this Agreement will not
     violate any law or agreement governing Grantor or to which Grantor is a
     party, and its articles or agreements relating to entity incorporation,
     organization or existence do not prohibit any term or 

<PAGE>

     condition of this Agreement.

     ENFORCEABILITY OF COLLATERAL.  To the extent the Collateral consists of
     accounts, chattel paper, or general intangibles, the Collateral is
     enforceable in accordance with its terms, is genuine, and complies with
     applicable laws concerning form, content and manner, of preparation and
     execution, and all persons, appearing to be obligated on the Collateral
     have authority and capacity to contract and are in fact obligated as they
     appear to be on the Collateral.  At the time any account becomes subject to
     a security interest in favor of Lender, the account shall be a good and
     valid account representing an undisputed, bona fide indebtedness incurred
     by the account debtor, for merchandise held subject to delivery
     instructions or theretofore shipped or delivered pursuant to a contract of
     sale, or for services theretofore performed by Grantor with or for the
     account debtor; there shall be no setoffs or counterclaims against any such
     account; and no agreement under which any deductions or discounts may be
     claimed shall have been made with the account debtor except those disclosed
     to Lender in writing.

     LOCATION OF THE COLLATERAL.  Grantor, upon request of Lender, will deliver
     to Lender in form satisfactory to Lender a schedule of real properties and
     Collateral locations relating to Grantor's operations, including without
     limitation the following: (a) all real property owned or being purchased by
     Grantor; (b) all real property being rented or leased by Grantor; (c) all
     storage facilities owned, rented, leased, or being used by Grantor; and (d)
     all other properties where Collateral is or may be located.  Except in the
     ordinary course of its business, Grantor shall not remove the Collateral
     from its existing locations without the prior written consent of Lender.

     REMOVAL OF COLLATERAL.  Grantor shall keep the Collateral (or to the extent
     the Collateral consists of Intangible property such as accounts, the
     records concerning the Collateral) at Grantor's address shown above, or at
     such other locations as are acceptable to Lender.  Except in the ordinary
     course of its business, including the sales of Inventory, Grantor shall not
     remove the Collateral from its existing locations without the prior written
     consent of Lender.  To the extent that the Collateral consists of vehicles,
     or other titled property, Grantor shall not take or permit any action which
     would require application for certificates of title for the vehicles
     outside the State of Colorado, without the prior written consent of Lender.

     TRANSACTIONS INVOLVING COLLATERAL.  Except for inventory sold or accounts
     collected in the ordinary course of Grantor's business, Grantor shall not
     sell, offer to sell, or otherwise transfer or dispose of the Collateral. 
     While Grantor is not in default under this Agreement, Grantor may sell
     Inventory, but only in the ordinary course of its business and only to
     buyers who qualify as a buyer in the ordinary course of business.  A sale
     in the ordinary course of Grantor's business does not include a transfer in
     partial or total satisfaction of a debt or any bulk sale.  Grantor shall
     not pledge, mortgage, encumber or otherwise permit the Collateral to be
     subject to any lien, security interest, encumbrance, or charge, other than
     the security interest provided for in this Agreement, without the prior
     written consent of Lender.  This includes security interests even if junior
     in right to the security interests granted under this 

<PAGE>

     Agreement.  Unless waived by Lender, all proceeds from any disposition 
     of the Collateral (for whatever reason shall be held in trust for Lender 
     and shall not be commingled with any other funds; provided however, this 
     requirement shall not constitute consent by Lender to any sale or other 
     disposition.  Upon receipt, Grantor shall immediately deliver any such 
     proceeds to Lender.

     TITLE.  Grantor represents and warrants to Lender that it is the owner of
     the Collateral and holds good and marketable title to the Collateral, free
     and clear of all liens and encumbrances except for the lien of this
     Agreement.  No financing statement covering any of the collateral is on
     file in any public office other than those which reflect the security
     interest created by this Agreement or to which Lender has specifically
     consented.  Grantor shall defend Lender's rights in the Collateral against
     the claims and demands of all other persons.

     COLLATERAL SCHEDULES AND LOCATIONS.  As often as Lender shall require, and
     insofar as the Collateral consists of accounts and general intangibles,
     Grantor shall deliver to Lender schedules of such Collateral, including
     such information as Lender may require, including without limitation names
     and addresses of account debtors and agings of accounts and general
     intangibles.  Insofar as the Collateral consists of inventory and
     equipment, Grantor shall deliver to Lender, as often as Lender shall
     require, such lists, descriptions. and designations of such Collateral as
     Lender may require to identify the nature, extent, and location of such
     Collateral.  Such information shall be submitted for Grantor and each of
     his subsidiaries or related companies.

     MAINTENANCE AND INSPECTION OF COLLATERAL.  Grantor shall maintain all
     tangible Collateral in good condition and repair.  Grantor will not commit
     or permit damage to or destruction of the Collateral or any part of the
     Collateral.  Lender and its designated representatives and agents shall
     have the right at all reasonable times to examine, inspect, and audit the
     Collateral wherever located.  Grantor shall immediately notify Lender of
     all cases involving the return, rejection, repossession, loss or damage of
     or to any Collateral; of any request for credit or adjustment or of any
     other dispute arising with respect to the Collateral; and generally of all
     happenings and events affecting the Collateral or the value or the amount
     of the Collateral.

     TAXES, ASSESSMENTS AND LIENS.  Grantor will pay when due all taxes,
     assessments and governmental charges or levies upon the Collateral and
     provide Lender evidence of such payment upon its request.  Grantor may
     withhold any such payment or may elect to contest any lien if Grantor is in
     good faith conducting an appropriate proceeding to contest the obligation
     to pay and so long as Lender's interest in the Collateral is not
     jeopardized in Lender's sole opinion.  If the Collateral is subjected to a
     lien which is not discharged within fifteen (15) days, Grantor shall
     deposit with Lender cash, a sufficient corporate surety bond or other
     security satisfactory to Lender in an amount adequate to provide for the
     discharge of the lien plus any interest, data, attorneys' fees or other
     charges that could accrue as a result of foreclosure or sale of the
     Collateral.  In any contest Grantor shall defend itself and Lender and
     shall satisfy any final adverse judgment before enforcement against the
     Collateral.  Grantor shall name Lender as an additional obligee under any
     surety bond furnished in the 

<PAGE>

     contest proceedings.

     COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS.  Grantor is conducting and will
     continue to conduct Grantor's businesses in material compliance with all
     federal, state and local laws, statutes, ordinances, rules, regulations,
     orders, determinations and court decisions applicable to Grantor's
     businesses and to the production, disposition or use of the Collateral,
     including without limitation, those pertaining to health and environmental
     matters such as the Comprehensive Environmental Response, Compensation, and
     Liability Act of 1980, as amended by the Superfund Amendments and
     Reauthorization Act of 1986 (collectively, together with any subsequent
     amendments, hereinafter called "CERCLA"), the Resource Conservation and
     Recovery Act of 1976, as amended by the Used Oil Recycling Act of 1980, the
     Solid Waste Disposal Act Amendments of 1980, and the Hazardous Substance
     Waste Amendments of 1984 (collectively, together with any subsequent
     amendments, hereinafter called "RCRA").  Grantor represents and warrants
     that (i) none of the operations of Grantor is the subject of a federal,
     state or local investigation evaluating whether any material remedial
     action is needed to respond to a release or disposal of any toxic or
     hazardous substance or solid waste into the environment; (ii) Grantor has
     not filed any notice under any federal, state or local law indicating that
     Grantor is responsible for the release into the environment, the disposal
     on any promises in which Grantor is conducting its businesses or the
     improper storage, of any material amount of any toxic or hazardous
     substance or solid waste or that any such toxic or hazardous substance or
     solid waste has been released, disposed of or is improperly stored, upon
     any premises on which Grantor is conducting its businesses; and (iii)
     Grantor otherwise does not have any known material contingent liability in
     connection with the release into the environment, disposal or the improper
     storage, of any such toxic or hazardous substance or solid waste.  The
     terms "hazardous substance" and "release," as used herein, shall have the
     meanings specified in CERCLA, and the terms "solid waste" and "disposal,"
     as used herein, shall have the meanings specified in RCRA; provided,
     however, that to the extent that the laws of the State of Colorado
     establish meanings for such terms which are broader than that specified in
     either CERCLA or RCRA, such broader meanings shall apply.  The
     representations and warranties contained herein are based on Grantor's due
     diligence in investigating the Collateral for hazardous wastes and
     substances.  Grantor hereby (a) releases and waives any future claims
     against Lender for indemnity or contribution in the event Grantor 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 and losses
     resulting from a breach of this provision of this Agreement.  This
     obligation to indemnify shall survive the payment of the Indebtedness and
     the termination of this Agreement.

     MAINTENANCE OF CASUALTY INSURANCE.  Grantor shall procure and maintain all
     risk insurance, including without limitation fire, theft and liability
     coverage together with such other insurance as Lender may require with
     respect to the Collateral, in form, amounts, coverages and basis reasonably
     acceptable to Lender, and issued by a company or companies reasonably
     acceptable to Lender.  Grantor, 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 

<PAGE>

     thirty (30) days' prior written notice to Lender and not including any 
     disclaimer of the insurer's liability for failure to give such a notice. 
     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 Grantor or any other person.  In connection with 
     all policies covering assets in which Lender holds or is offered a 
     security interest, Grantor will provide Lender with such loss payable or 
     other endorsements as Lender may require. If Grantor at any time fails 
     to obtain or maintain any insurance as required under this Agreement, 
     Lender may (but shall not be obligated to) obtain such insurance as 
     Lender deems appropriate, including if it so chooses "single interest 
     Insurance," which will cover only Lender's interest in the Collateral.

     APPLICATION OF INSURANCE PROCEEDS.  Grantor shall promptly notify Lender of
     any loss or damage to the Collateral.  Lender may make proof of loss if
     Grantor fails to do so within fifteen (15) days of the casualty.  All
     proceeds of any insurance on the Collateral, including accrued proceeds
     thereon, shall be held by Lender as part of the Collateral.  If Lender
     consents to repair or replacement of the damaged or destroyed Collateral,
     Lender shall, upon satisfactory proof of expenditure, pay or reimburse
     Grantor from the proceeds for the reasonable cost of repair or restoration.
     If Lender does not consent to repair or replacement of the Collateral,
     Lender shall retain a sufficient amount of the proceeds to pay all of the
     Indebtedness, and shall pay the balance to Grantor.  Any proceeds which
     have not been disbursed within six (6) months after their receipt and which
     Grantor has not committed to the repair or restoration of the Collateral
     shall be used to prepay

     THE INDEBTEDNESS.  Application of insurance proceeds to the payment of the
     Indebtedness will not extend, postpone or waive any payments otherwise due,
     or change the amount of such payments to be made and proceeds may be
     applied in such order and such amounts as Lender may elect.

     SOLVENCY OF GRANTOR.  As of the date hereof, and after giving effect to
     this Agreement and the completion of all other transactions contemplated by
     Grantor at the time of the execution of this Agreement, (i) Grantor is and
     will be solvent, (ii) the fair salable value of Grantor's assets exceeds
     and will continue to exceed Grantor's liabilities (both fixed and
     contingent), (iii) Grantor is paying and will continue to be able to pay
     its debts as they mature, and (iv) if Grantor is not an individual Grantor
     has and will have sufficient capital to carry on Grantor's businesses and
     all businesses in which Grantor is about to engage.
          
     LIEN NOT RELEASED.  The lien, security interest and other security rights
     of Lender hereunder shall not be impaired by any indulgence, moratorium or
     release granted by Lender, including but not limited to, the following: (a)
     any renewal, extension, increase or modification of any of the
     Indebtedness; (b) any surrender, compromise, release, renewal, extension,
     exchange or substitution granted in respect of any of the Collateral; (c)
     any release or indulgence granted to any endorser, guarantor or surety of
     any of the Indebtedness; (d) any release of any other collateral for any of
     the Indebtedness; (e) any acquisition of any additional collateral for any
     of the Indebtedness; and (f) any waiver or failure to exercise any right,
     power or remedy granted herein, by law or in any of the Related Documents.

<PAGE>

     REQUEST FOR ENVIRONMENTAL INSPECTIONS.  Upon Lender's reasonable request
     from time to time, Grantor will obtain at Grantor's expense an inspection
     or audit report(s) addressed to Lender of Grantor's operations from an
     engineering or consulting firm approved by Lender, indicating the presence
     or absence of toxic and hazardous substances, underground storage tanks and
     solid waste on any premises in which Grantor is conducting a business;
     provided, however, Grantor will be obligated to pay for the cost of any
     such inspection or audit no more than one time in any twelve (12) month
     period unless Lender has reason to believe that toxic or hazardous
     substance or solid wastes have been dumped or released on any such
     premises.  If Grantor fails to order or obtain an inspection or audit
     within ten (10) days after its request, Lender may at its option order such
     inspection or audit, and Grantor grants to Lender and its agents,
     employees, contractors and consultants access to the promises in which it
     is conducting its business and a license (which is coupled with an interest
     and is irrevocable) to obtain inspections and audits.  Grantor agrees to
     promptly provide Lender with a copy of the results of any such inspection
     or audit received by Grantor.  The cost of such inspections and audits by
     Lender shall be a part of the Indebtedness, secured by the Collateral and
     payable by Grantor on demand.

GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS.  Until default and except
as otherwise provided below with respect to accounts, Grantor may have
possession of the tangible personal property and beneficial use of all the
Collateral and may use it in any lawful manner not inconsistent with this
Agreement or the Related Documents, provided that Grantor's right to possession
and beneficial use shall not apply to any Collateral where possession of the
Collateral by Lender is required by law to perfect Lender's security interest in
such Collateral.  Until otherwise notified by Lender, Grantor may collect any of
the Collateral consisting of accounts.  At any time and even though no Event of
Default exists, Lender may collect the accounts, notify account debtors to make
payments directly to Lender for application to the Indebtedness and to verify
the accounts with such account debtors.  Lender also has the right, at the
expense of Grantor, to enforce collection of such accounts and adjust, settle,
compromise, sue for or foreclose on the amount owing under any such account, in
the same manner and to the same extent as Grantor.  If Lender at any time has
possession of any Collateral, whether before or after an Event of Default,
Lender shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral if Lender takes such action for that purpose as
Grantor shall request or as Lender, in Lender's sole discretion, shall deem
appropriate under the circumstances, but failure to honor any request by Grantor
shall not of itself be deemed to be a failure to exercise reasonable care, shall
not be required to take any steps necessary to preserve any rights in the
Collateral against prior parties, nor to protect, preserve or maintain any
security interest given to secure the Indebtedness.

EXPENDITURES BY LENDER.  If not discharged or paid when due, Lender may (but
shall not be obligated to) discharge or pay any amounts required to be
discharged or paid by Grantor under this Agreement, including without limitation
all taxes, liens, security interests, encumbrances, and other claims. at any
time levied or placed on as Collateral.  Lender also may (but shall not be
obligated to) pay all costs far insuring, maintaining and preserving the
Collateral.  All such expenditures incurred or paid by Lender for such purposes
will then bear interest at the rate charged under the Note from the date
incurred or paid by Lender to the date of repayment by Grantor.  All such
expenses shall become a part of the Indebtedness and be payable on demand by
Lender.  Such 

<PAGE>

right shall be in addition to all other rights and remedies to which Lender 
may be entitled upon the occurrence of an Event of Default.

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 or any other indebtedness or obligation now or
     hereafter owing to Lender.

     OTHER DEFAULTS.  Failure of Grantor or Borrower to comply with or to
     perform any other term, obligation, covenant or condition contained in this
     Agreement, the Note, any of the other Related Documents or failure of
     Borrower to comply with or to perform any term, obligation, covenant or
     condition contained in any other agreement now existing or hereafter
     arising between Lender and Borrower.

     FALSE STATEMENTS.  Any warranty, representation or statement made or
     furnished to Lender under this Agreement, the Note or any of the other
     Related Documents is false or misleading in any material respect.

     DEFAULT TO THIRD PARTY.  The occurrence of any event which permits the
     acceleration of the maturity of any indebtedness owing by Borrower, Grantor
     or any Guarantor to any third party under any agreement or undertaking.

     BANKRUPTCY OR INSOLVENCY.  If the Borrower, Grantor or any Guarantor: (i)
     becomes insolvent, or makes a transfer in fraud of creditors, or makes an
     assignment for the benefit of creditors, or admits in writing its inability
     to pay its debts as they become due; (ii) generally is not paying its debts
     as such debts become due; (iii) has a receiver, trustee or custodian
     appointed to, or take possession of, all or substantially all of the assets
     of such party or any of the Collateral, either in a proceeding brought by
     such party or in a proceeding brought against such party and such
     appointment is not discharged or such possession is not terminated within
     sixty (60) days after the effective date thereof or such party consents to
     or acquiesces in such appointment or possession; (iv) files a petition for
     relief under the United States Bankruptcy Code or any other present or
     future federal or state insolvency, bankruptcy or similar laws (all of the
     foregoing hereinafter collectively called "Applicable Bankruptcy Law") or
     an involuntary petition for relief is filed against such party under any
     Applicable Bankruptcy Law and such involuntary petition is not dismissed
     within sixty (60) days after the filing thereof, or an order for relief
     naming such party is entered under any Applicable Bankruptcy Law, or any
     composition, rearrangement, extension, reorganization or other relief of
     debtors now or hereafter existing is requested or consented to by such
     party; (v) fails to have discharged within a period of sixty (60) days any
     attachment, sequestration or similar writ levied upon any property of such
     party; or (vi) fails to pay within thirty (30) days any final money
     judgment against such party.

     LIQUIDATION, DEATH AND RELATED EVENTS.  If Borrower, Grantor or any
     Guarantor is an entity, the liquidation, dissolution, merger or
     consolidation of any such entity or, if any of 

<PAGE>

     such parties is an individual, the death or legal incapacity of any 
     such individual.

     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 Grantor or Borrower or
     by any government agency against the Collateral or any other collateral
     securing the Indebtedness.

RIGHTS AND REMEDIES ON DEFAULT.  It an Event of Default occurs under this
Agreement, at any time thereafter, Lender shall have all the rights of a secured
party under the Code.  In addition and without limitation, Lender may exercise
any one or more of the following rights and remedies:

     ACCELERATE INDEBTEDNESS.  Lender may declare the entire Indebtedness,
     including any prepayment penalty which Borrower would be required to pay,
     immediately due and payable, without notice.

     ASSEMBLE COLLATERAL.  Lender may require Grantor to deliver to Lender all
     or any portion of the Collateral and any and all certificates of title and
     other documents relating to the Collateral.  Lender may require Grantor to
     assemble the Collateral and make it available to Lender at a place to be
     designated by Lender. Lender also shall have full power to enter upon the
     property of Grantor to take possession of and remove the Collateral.  If
     the Collateral contains other goods not covered by this Agreement at the
     time of repossession, Grantor agrees Lender may take such other goods,
     provided that  Lender makes reasonable efforts to return them to Grantor
     after Lender repossession.

     SELL THE COLLATERAL.  Lender shall have full Power to sell, lease,
     transfer, or otherwise dispose of the Collateral or the proceeds thereof in
     its own name or that of Grantor.  Lender may sell the Collateral (as a unit
     or in parcels) at public auction or private rate.  Lender may buy the
     Collateral, or any portion thereof (i) at any public sale, and (ii) at any
     private sale if the Collateral is of a type customarily sold in a
     recognized market or is of a type which is the subject of widely
     distributed standard price quotations.  Lender shall not be obligated to
     make any sale of Collateral regardless of a notice of sale having been
     given.  Lender may adjourn any public or private sale from time to time by
     announcement at the time and place fixed therefor, and such sale may,
     without further notice, be made at the time and place to which it was so
     adjourned.  Unless the Collateral is perishable or threatens to decline
     speedily in value or is of a type customarily sold on a recognized market,
     Lender will give Grantor reasonable notice of the time and place of any
     public sale thereof or, of the time after which any private sale or any
     other intended disposition of the Collateral is to be made.  The
     requirements of reasonable notice shall be met if such notice is given at
     least ten (10) days prior to the date any public sale, or after which a
     private sale, of any of such Collateral is to be held.  All expenses
     relating to the disposition of the Collateral, including without limitation
     the expenses of retaking, holding, insuring. preparing for sale and selling
     the Collateral, shall become a part at the Indebtedness secured by this
     Agreement and shall be payable on demand, with interest at the Note rate
     from date of expenditure until repaid.  Any sale of Collateral through the
     public trustee shall be deemed a commercially reasonable sale.

<PAGE>

     APPOINT RECEIVER.  To the extent permitted by applicable law.  Lender shall
     have the following rights and remedies regarding the appointment of a
     receiver: (a) Lender may have a receiver appointed as a matter of right,
     (b) the receiver may be an employee of Lender may serve without bond, and
     (c) all fees of the receiver and his or her attorney shall become part of
     the Indebtedness secured by this Agreement and shall be payable on demand,
     with interest at the Note rate from date of expenditure until repaid.  The
     receiver may be appointed by a court of competent jurisdiction upon ex
     parte application and without notice, notice being expressly waived.

     COLLECT REVENUES, APPLY ACCOUNTS. Lender, either itself or through a
     receiver, may collect the payments, rents, income, and revenues from the
     Collateral.  Lender may transfer any Collateral into its own name or that
     of its nominee and receive the payments, rents, income, and revenues
     therefrom and hold the same as security for the Indebtedness or apply it to
     payment of the Indebtedness in such order of preference as Lender may
     determine.  Insofar as the Collateral consists of accounts, general
     intangibles, insurance policies, instruments, chattel paper, choses in
     action, or similar property, Lender may demand, collect, receipt for,
     settle, compromise, adjust, sue for, foreclose, or realize on the
     Collateral as Lender may determine.  For these purposes, Lender may, on
     behalf of and in the name of Grantor, receive, open and dispose of mail
     addressed to Grantor; change any address to which mail and payments are to
     be sent; and endorse notes, checks, drafts, money orders, documents of
     title, instruments and items pertaining to payment, shipment, or storage of
     any Collateral.  To facilitate collection, Lender may notify account
     debtors and obligors on any Collateral to make payments directly to Lender.

     OBTAIN DEFICIENCY.  If Lender chooses to sell any or all of the Collateral,
     Lender may obtain a judgment against Borrower for any deficiency remaining
     on the Indebtedness due to Lender after application of all amounts received
     from the exercise of the rights provided in this Agreement.  Borrower shall
     be liable for a deficiency even if the transaction described in this
     subsection is a sale of accounts or chattel paper.

     OTHER RIGHTS AND REMEDIES.  Lender shall have all the rights and remedies
     of a secured creditor under the provisions of the Code, as may be amended
     from time to time.  In addition, Lender shall have and may exercise any or
     all other rights and remedies it may have available at law, in equity, or
     otherwise.  Grantor waives any right to require Lender to proceed against
     any third party, exhaust any other security for the Indebtedness or pursue
     any other right or remedy available to Lender.

     CUMULATIVE REMEDIES.  All of Lender's rights and remedies, whether
     evidenced by this Agreement or the Related Documents or by any other
     writing, 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 Grantor or Borrower under this
     Agreement, after Grantor or Borrower's failure to perform, shall not affect
     Lender's right to declare a default and to exercise its remedies.

<PAGE>

MISCELLANEOUS PROVISIONS.

     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 and supercedes all prior written and
     oral agreements and understandings, it any, regarding same.  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 has been delivered to Lender and accepted
     by Lender in the State of Colorado.  This Agreement shall be governed by
     and construed in accordance with the laws of the State of Colorado without
     regard to any conflict of laws or provisions thereof.

     JURY WAIVER.  THE UNDERSIGNED AND LENDER (BY ITS ACCEPTANCE HEREOF) HEREBY
     VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO
     HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE WHETHER BASED UPON
     CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG THE UNDERSIGNED AND LENDER
     ARISING OUT OF OR IN ANY WAY RELATED TO THIS DOCUMENT OR ANY OTHER RELATED
     DOCUMENT.  THIS PROVISION IS A MATERIAL INDUCEMENT TO LENDER TO PROVIDE THE
     FINANCING DESCRIBED HEREIN OR IN THE OTHER RELATED DOCUMENTS.

     ATTORNEYS' FEES; EXPENSES.  Grantor will upon demand pay to Lender the
     amount of any and all costs and expenses (including without limitation,
     reasonable attorneys' fees and expenses) which Lender may incur in
     connection with (i) the perfection and preservation of the collateral
     assignment and security interests created under this Agreement, (ii) the
     custody, preservation, use or operation of, or the sale of, collection
     from, or other realization upon, the Collateral, (iii) the exercise or
     enforcement of any of the rights of Lender under this Agreement, or (iv)
     the failure by Grantor to perform or observe any of the provisions hereof.

     TERMINATION.  Upon (i) the satisfaction in full of the indebtedness and all
     obligations hereunder, (ii) the termination or expiration of any commitment
     of Lender to extend credit that would become Indebtedness hereunder, and
     (iii) Lender's receipt of a written request from Grantor for the
     termination hereof, this Agreement and the security interests created
     hereby shall terminate.  Upon termination of this Agreement and Grantor's
     written request, Lender will, at Granters sole cost and expense, return to
     Grantor such of the Collateral as shall not have been sold or otherwise
     disposed of or applied pursuant to the terms hereof and execute and deliver
     to Grantor such documents as Grantor shall reasonably request to evidence
     such termination.

     INDEMNITY.  Grantor hereby agrees to Indemnify, defend and hold harmless
     Lender, and its officers, directors, shareholders. employees, agents and
     representatives (each an 

<PAGE>

     "Indemnified Person") from and against any and all liabilities, 
     obligations, claims, losses, damages, penalties, actions. judgments, 
     suits, costs, expenses or disbursements of any kind or nature 
     (collectively, the "Claims") which may be imposed on, incurred by or 
     asserted against, any Indemnified Person (whether or not caused by any 
     Indemnified Person's sole, concurrent or contributory negligence) 
     arising in connection with the Related Documents, the indebtedness or 
     the Collateral (including, without limitation, the enforcement of the 
     Related Documents and the defense of any Indemnified Person's action 
     and/or inactions in connection with the Related Documents), except to 
     the limited extent that the Claims against the Indemnified Person are 
     proximately caused by such Indemnified Person's willful misconduct.  The 
     Indemnification provided for in this section shall survive the 
     termination of this Agreement and shall extend and continue to benefit 
     each individual or entity who is or has at any time been an Indemnified 
     Person hereunder.

     CAPTION HEADINGS.  Caption headings in this Agreement are for convenience
     purposes only and are not to be used to interpret or define the Notices,
     All notices required to be given under this Agreement shall be given in
     writing, and shall be effective when actually delivered or when deposited
     with a nationally recognized overnight courier or deposited 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 then one Grantor or Borrower, notice to any Grantor or
     Borrower will constitute notice to all Grantors and Borrowers.  For notice
     purposes, Grantor and Borrower will keep Lender informed at all times of
     Grantor and Borrower's current address(es).

     POWER OF ATTORNEY.  Grantor hereby irrevocably appoints Lender all its true
     and lawful attorney-in-fact, such power of attorney being coupled with an
     Interest, with full power of substitution to do the following in the place
     and stead of Grantor and in the name of Grantor: (a) to demand, collect,
     receive, receipt for, sue and recover all sums of money of other property
     which may now or hereafter become due, owing or payable from the
     Collateral; (b) to execute, sign and endorse any and all claims,
     instruments, receipts, checks, drafts or warrants issued in payment for the
     Collateral; (c) to settle or compromise any and all claims arising under
     the Collateral, and, in the place and stead of Grantor, to execute and
     deliver its release and settlement for the claim; and (d) to file any claim
     or claims or to take any action or institute or take part in any
     proceedings, either in its own name or in the name of Grantor, or
     otherwise, which in the discretion of Lender may seem to be necessary or
     advisable.  This power is given as security for the Indebtedness, and the
     authority hereby conferred is and shall be irrevocable and shall remain in
     full force and effect until renounced by Lender.

     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 an offending provision
     cannot be so modified, it shall be stricken and all other provisions of
     this Agreement in all other respects shall remain valid 

<PAGE>

     and enforceable.

     SUCCESSOR INTERESTS.  Subject to the limitations set forth above on
     transfer of the Collateral, this Agreement shall be binding upon and inure
     to the benefit of the parties, their successors and assigns; provided,
     however, Grantor's rights and obligations hereunder may not be assigned or
     otherwise transferred without the prior written consent of Lender.

     WAIVER.  Lender shall not be deemed to have waived any rights under this
     Agreement, unless such waiver is given in writing and signed by Lender.  No
     delay or omission on the part of Lender in exercising any right shall
     operate as a waiver of such right or any other right.  A waiver by Lender
     of a provision of this Agreement shall not prejudice or constitute a waiver
     of Lender's right to thereafter demand strict compliance with that
     provision or any other provision of this Agreement.  No prior waiver by
     Lender, nor any course of dealing between Lender and Grantor, shall
     constitute a waiver of any of Lender's rights or of any of Grantor's
     obligations as to any future transactions.  Whenever the consent of Lender
     is required under this Agreement, the granting of such consent by Lender in
     any instance shall not constitute continuing consent to subsequent
     instances where such consent is required and in all cases such consent may
     be granted or withheld in the sole discretion of Lender.

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY
AGREEMENT, AND GRANTOR AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED OCTOBER 30,
1997.

GRANTOR:

COLORADO MEDTECH, INC., A COLORADO CORPORATION

By: /s/ John V. Atanasoff
   -------------------------------------------  
    JOHN V. ATANASOFF, PRESIDENT & CEO

By: /s/ Bruce L. Arfmann
   -------------------------------------------  
    BRUCE L. ARFMANN, CFO


RELA, INC., A COLORADO CORPORATION

By: /s/ John V. Atanasoff
   -------------------------------------------  
    JOHN V. ATANASOFF, CHAIRMAN OF THE BOARD

By: /s/ Bruce L. Arfmann
   -------------------------------------------  
    BRUCE L. ARFMANN, CFO


NOVEL BIOMEDICAL, INC., A MINNESOTA CORPORATION

<PAGE>

By: /s/ John V. Atanasoff
   -------------------------------------------  
     JOHN V. ATANASOFF, CHAIRMAN OF THE BOARD

By: /s/ Bruce L. Arfmann
   -------------------------------------------  
     BRUCE L. ARFMANN, CFO


--------------------------------------------------------------------------------
LASER PRO, Reg U.S. Pat. & T.M. Off., Ver 3.23(c) 1997 CFI ProServices, Inc. All
rights reserved (CO-E40 CD625633.LNC3.OVL)

<PAGE>

BANKONE
                                   PROMISSORY NOTE

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------- 
<S>             <C>           <C>          <C>        <C>      <C>          <C>          <C>
  Principal     Loan Date      Maturity    Loan No.    Call    Collateral     Account    Initials  
$9,000,000.00   10-30-1997    10-30-2000              001113       328      2992911104
-------------------------------------------------------------------------------------------------- 
  References 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>

Borrower: COLORADO MEDTECH, INC., A COLORADO     Lender: Bank One Colorado, NA
          CORPORATION; ET. AL.                           Boulder
          6175 LONGBOW DRIVE                             1125 17th Street
          BOULDER, CO 80301                              Denver, CO 80217

Principal Amount: $9,000,000.00                  Date of Note: October 30, 1997

PROMISE TO PAY.  For value received, COLORADO MEDTECH, INC., A COLORADO
CORPORATION, RELA, INC., A COLORADO CORPORATION and NOVEL BIOMEDICAL, INC., A
MINNESOTA CORPORATION referred to in this Note individually and collectively as 
"Borrower") jointly and severally promise to pay to Bank One, Colorado.  NA
("Lender"), or order in lawful money of the United States of America, the
principal amount of Nine Million & 00/100 Dollars ($9,000,000.00) ("Total
Principal Amount") or so much as may be outstanding, together with Interest on
the unpaid outstanding principal balance from the date advanced until paid in
full. 

PAYMENT.  This Note shall be payable as follows: Interest shall be due and
payable monthly as it accrues, commencing on November 30, 1997 and continuing on
the same day of each month thereafter during the term of this Note, and the
outstanding principal balance of this Note, together with all accrued but unpaid
interest, shall be due and payable on October 30, 2000.  Interest on this Note
is computed on a 365/360 simple interest basis; that is, by applying the ratio
of the annual interest rate over a year of 360 days, multiplied by the
outstanding principal balance, multiplied by the actual number of days the
principal balance is outstanding.  Borrower will pay Lender at the address
designated by Lender from time to time in writing.  If any payment of principal
of or interest on this Note shall become due on a day which is not a Business
Day, such payment shall be made on the next succeeding Business Day.  As used
herein, the term "Business Day" shall mean any day other than a Saturday, Sunday
or any other day on which national banking associations are authorized to be
closed.  Unless otherwise agreed to, in writing, or otherwise required by
applicable law, payments will be applied first to accrued, unpaid interest, then
to principal, and any remaining amount to any unpaid collection costs, late
charges and other charges, provided, however, upon delinquency or other default,
Lender reserves the right to apply payments among principal, interest, late
charges, collection costs and other charges at its discretion.  The books and
records of Lender shall be prima facie evidence of all outstanding principal of
and accrued but unpaid interest on the a Note.  This Note may be executed in
connection with a loan agreement.  Any such loan agreement may contain
additional rights, obligations and terms.

VARIABLE INTEREST RATE.  The interest rate on this Note is subject to
fluctuation based upon the Prime Rate of interest in effect from time to time
(the "Index") (which rate may not be the 

<PAGE>

lowest, best or most favorable rate of interest which Lender may charge on 
loans to its customers).  "Prime Rate" shall mean the rate announced from 
time to time by Lender as its prime rate.  Each change in the rate to be 
charged on this Note will become effective without notice on the same day as 
the Index changes.  Except as otherwise provided herein, the unpaid principal 
balance of this Note shall accrue interest at a rate per annum which will 
from time to time be equal to the sum of the Index, plus 0.000%. NOTICE: 
Under no circumstances will the Interest rate on this Note be more than the 
maximum rate allowed by applicable law.

PREPAYMENT.  Borrower may pay without fee all or a portion of the principal
amount owed hereunder earlier than it is due.  All prepayments shall be applied
to the indebtedness owing hereunder In such order and manner as Lender may from
time to time determine in its sole discretion.

LATE CHARGE.  If a payment is 10 days or more late, Borrower will be charged
5.000% of the regularly scheduled payment or $25.00, whichever is greater, up to
the maximum amount of $250.00 per late charge.

DEFAULT.  Borrower will be in default it any of the following happens: (a)
Borrower fails to make any payment of principal or interest when due under this
Note or any other indebtedness owing now or hereafter by Borrower to Lender; (b)
Failure of Borrower or any other party to comply with or perform any term,
obligation, covenant or condition contained in this Note or in any other
promissory note, credit agreement, loan agreement, guaranty, security agreement,
mortgage, deed of trust or any other instrument, agreement or document, whether
now or hereafter existing, executed in connection with this Note (the Note and
all such other instruments, agreements, and documents shall be collectively
known herein as the "Related Documents"); (c) Any representation or statement
made or furnished to Lender herein, in any of the Related Documents or in
connection with any of the foregoing is false or misleading in any material
respect; (d) Borrower or any other party liable for the payment of this Note,
whether as maker, endorser, guarantor, surety or otherwise, becomes insolvent or
bankrupt, has a receiver or trustee appointed for any part of its property,
makes an assignment for the benefit of its creditors, or any proceeding is
commenced either by any such party or against  it under any bankruptcy or
insolvency laws; (e) the occurrence of any event of default specified in any of
the other Related Documents or in any other agreement now or hereafter arising
between Borrower and Lender; (f) the occurrence of any event which permits the
acceleration of maturity of any Indebtedness owing now or hereafter by Borrower
to any third party; or (g) the liquidation, termination, dissolution, death or
legal incapacity of Borrower or any other party liable for the payment of this
Note, whether as maker, endorser, guarantee, surety, or otherwise.

LENDER'S RIGHTS.  Upon default, Lender may at its option, without further notice
or demand (i) declare the entire unpaid principal balance on this Note, all
accrued unpaid interest and all other costs and expenses for which Borrower is
responsible for under this Note and any other Related Document immediately due,
(ii) refuse to advance any additional amounts under this Note, (iii) foreclose
all items securing payment hereof, (iv) pursue any other rights, remedies and
recourses available to the Lender, including without limitation, any such
rights, remedies or recourses under the Related Documents, at law or in equity,
or (v) pursue any combination of the foregoing.  Upon default, including failure
to pay upon final maturity, Lender, at its option, may also, if permitted 

<PAGE>

under applicable law, do one or both at the following: (a) increase the 
variable interest rate on this Note to 3.000 percentage points over the 
Index, and (b) add any unpaid accrued interest to principal and such sum will 
bear interest therefrom until paid at the rate provided in this Note 
(including any increased rate). The interest rate will not exceed the maximum 
rate permitted by applicable law.  Lender may hire an attorney to help 
collect this Note if Borrower does not pay and Borrower will pay Lender's 
reasonable attorneys' fees and all other costs of collection, unless 
prohibited by applicable law.  This Note has been delivered to Lender and 
accepted by Lender in the State of Colorado.  Subject to the provisions on 
arbitration, this Note shall be governed by and construed in accordance with 
the laws of the State of Colorado without regard to any conflict of laws or 
provisions thereof.

PURPOSE.  Borrower agrees that no advances under this Note shall be used for
personal, family, or household purposes and that all advances hereunder shall be
used solely for business, commercial, agricultural or other similar purposes.

JURY WAIVER.  THE BORROWER AND LENDER (BY ITS ACCEPTANCE HEREOF) HEREBY
VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE
A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT.  TORT
OR OTHERWISE) BETWEEN BORROWER AND LENDER ARISING OUT OF OR IN ANY WAY RELATED
TO THIS NOTE OR THE OTHER RELATED DOCUMENTS.  THIS PROVISION IS A MATERIAL
INDUCEMENT TO LENDER TO PROVIDE THE FINANCING EVIDENCED BY THIS NOTE.

DISHONORED ITEM FEE.  Borrower will pay a fee to Lender of $20.00 if Borrower
makes a payment on Borrower's loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

RIGHT OF SETOFF.  Unless a 1ien would be prohibited by law or would render a
nontaxable account taxable, Borrower grants to Lender a contractual possessory
security interest in, and hereby assigns, conveys, delivers, pledges, and
transfers to Lender all Borrower's rights, title and interest in and to,
Borrower's accounts with Lender (whether checking, savings, or any other
account), including without limitation all accounts held jointly with someone
else and all accounts Borrower may open in the future.  Borrower authorizes
Lender to the extent permitted by applicable law to charge or setoff all sums
owing on this Note against any and all such accounts.

LINE OF CREDIT.  This Note evidences a revolving line of credit.  Borrower may
request advances and make payments hereunder from time to time, provided that it
is understood and agreed that the aggregate principal amount outstanding from
time to time hereunder shall not at any time exceed the Total Principal Amount.
The unpaid principal balance of this Note shall increase and decrease with each
new advance or payment hereunder, as the case may be.  Subject to the terms
hereof, Borrower may borrow, repay and reborrow hereunder.  Advances under this
Note, as well as directions for payment from Borrower's accounts, may be
requested orally or in writing by Borrower or by an authorized person.  Lender
may, but need not, require that all oral requests be confirmed in writing. 
Borrower agrees to be liable for all sums either: (a) advanced in accordance

<PAGE>

with the instructions of an authorized person or (b) credited to any of
Borrower's accounts with Lender.

ARBITRATION.  Lender and Borrower agree that upon the written demand of either
party, whether made before or after the institution of any legal proceedings,
but prior to the rendering of any judgment in that proceeding, all disputes,
claims and controversies between them. whether individual, joint, or class in
nature, arising from this Note, any Related Document or otherwise, including
without limitation contract disputes and tort claims, shall be arbitrated
pursuant to the Commercial Rules of the American Arbitration Association.  Any
arbitration proceeding held pursuant to, this arbitration provision shall be
conducted in the city nearest the Borrower's address having an AAA regional
office, or at any other place selected by mutual agreement of the parties.  No
act to take or dispose of any collateral shall constitute a waiver of this
arbitration agreement or be prohibited by this arbitration agreements This
arbitration provision shall not limit the right of either party during any
dispute, claim or controversy to seek, use, and employ ancillary, provisional or
preliminary rights and/or remedies, judicial or otherwise, for the purposes of
realizing upon, preserving, protecting, foreclosing upon or proceeding under
forcible entry and detainer for possession of, any real or personal property,
and any such action shall not be deemed an election of remedies.  This includes,
without limitation, obtaining injunctive relief or a temporary restraining
order, invoking a power of sale under any deed of trust or mortgages, obtaining
a writ of attachment or imposition of a receivership, or exercising any rights
relating to personal property, including taking or disposing of such property
with or without judicial process pursuant to Article 9 of the Uniform Commercial
Code. Any disputes, claims, or controversies concerning the lawfulness or
reasonableness of any act, or exercise of any right or remedy, concerning any
collateral, including any claim to rescind, reform, or otherwise modify any
agreement, relating to the collateral, shall also be arbitrated; provided
however that no arbitrator shall have the right or the power to enjoin or
restrain any act of either party.  Judgment upon any award rendered by any
arbitrator may be entered in any court having jurisdiction.  Nothing in this
arbitration provision shall prejudice either party from seeking equitable relief
from a court of competent jurisdiction.  The statute of limitations, estoppel,
waiver, laches and similar doctrines which would otherwise be applicable in an
act; or brought by a party shall be Applicable in any arbitration proceeding,
and the commencement of an arbitration proceeding shall be deemed the
commencement of any action, for these purposes.  The Federal Arbitration Act
(Title 9 of the United States Code) shall apply to the construction,
interpretation, and enforcement of this arbitration provision.

GENERAL PROVISIONS.  Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them.  Each Borrower understands and
agrees that, with or without notice to Borrower, Lender may with respect to any
other Borrower or with respect of any other indebtedness owing by such other
Borrower (a) make one or more additional, secured or unsecured loans or
otherwise extend additional credit; (b) alter, compromise, renew, extend,
accelerate, or otherwise change one or more times the time of payment or other
terms any indebtedness, including increases and decreases of the rate of
interest on the indebtedness; (c) exchange. enforce, waive, subordinate, fail or
decide to perfect and release any security, with or without the substitution of
now collateral; (d) apply such security and direct the order or manner of sale
thereof, including without limitation, any nonjudicial sale permitted by the
terms of the controlling security agreements, as Lender in its discretion may
determine; (e) release, substitute, agree not to sue, or deal with any one 

<PAGE>

or more of Borrower's sureties, endorsers, or other guarantors on any terms 
or in any manner Lender may choose; and (f) determine how, when and what 
application of payments and credits shall be made and any other indebtedness 
owing by such other borrower.  Borrowers and any other person who signs, 
guarantees or endorses this Note, to the extent allowed by law, waive 
presentment, demand for payment, protest and notice of dishonor.  Upon any 
change in the terms of this Note, and unless otherwise expressly stated in 
writing, no party who signs this Note, whether as maker, guarantor, 
accommodation maker or endorser, shall be released from liability.  All such 
parties agree that Lender may renew or extend (repeatedly and for any length 
of time) this Note, or release any party or guarantor or collateral: or 
unjustifiably impair, fail to realize upon or perfect Lender's security 
interest in the collateral; and take any other action deemed necessary by 
Lender without the consent of or notice to anyone.  All such parties also 
agree the Lender may modify this Note without the consent of or notice to 
anyone other than the party with whom the modification is made.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS, BORROWER AGREES TO
THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE.

BORROWER:
                                        

By: /s/ John V. Atanasoff
    -------------------------------------------- 
    John V. Atanasoff, II, President & CEO


By: /s/ Bruce L. Arfmann
    -------------------------------------------- 
    Bruce L. Arfmann, CFO


RELA, INC., A COLORADO CORPORATION


By: /s/ John V. Atanasoff
    -------------------------------------------- 
    John V. Atanasoff, II, Chairman, BOD


By: /s/ Bruce L. Arfmann
    -------------------------------------------- 
    Bruce L. Arfmann, CFO


NOVEL BIOMEDICAL, INC., A MINNESOTA CORPORATION


By: /s/ John V. Atanasoff
    -------------------------------------------- 
    John V. Atanasoff, II, Chairman, BOD

<PAGE>

By: /s/ Bruce L. Arfmann
    -------------------------------------------- 
       Bruce L. Arfmann, CFO