Document:

Exhibit 10.1

                                             REVOLVING CREDIT LOAN & SECURITY
                                                            AGREEMENT
                                                    (ACCOUNTS AND INVENTORY)

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|OBLIGOR #     | NOTE#            | AGREEMENT DATE                  |
|              |                  |                                 |
|              |                  | March 01, 2000                  |
|-------------------------------------------------------------------|
|CREDIT LIMIT  |  INTEREST RATE        | OFFICER NO./INITIALS       |
|              |                       |                            |
|$2,000,000.00 |  Base Rate + 0.25%    | 48226, Jason Brown         |
|-------------------------------------------------------------------|

         THIS AGREEMENT is entered into on March 1, 2000, between
    Comerica Bank-California ("Bank") as secured party, whose
    Headquarter Office is 333 West Santa Clara Street, San Jose,
    California and HemaCare Corporation ("Borrower"), a corporation
    whose sole place of business (if it has only one), chief
    executive (if it has more than one place of business) or
    residence (if an individual is located at 4954 Van Nuys
    Boulevard, Sherman Oaks, California.  The parties agree as
    follows:

    1.   DEFINITIONS

           1.1     "Agreement" as used in this Agreement means and
    includes this Revolving Credit Loan & Security Agreement
    (Accounts and Inventory), any concurrent or subsequent rider to
    this Revolving Credit Loan & Security Agreement (Accounts and
    Inventory) and any extensions, supplements, amendments or
    modifications to this Revolving Credit Loan & Security Agreement
    (Accounts and Inventory) and to any such rider.

           1.2     "Bank Expenses'1 as used in this Agreement means
    and includes: all costs or expenses required to be paid by
    Borrower under this Agreement which are paid or advanced by Bank;
    taxes and insurance premiums of every nature and kind of Borrower
    paid by Bank; filing, recording, publication and search fees,
    appraiser fees, auditor fees and costs, and title insurance
    premiums paid or incurred by Bank in connection with Bank's
    transactions with Borrower; costs and expenses incurred by Bank
    in collecting the Receivables (with or without suit) to correct
    any default or enforce any provision of this Agreement, or in
    gaining possession of, maintaining, handling, preserving,
    storing, shipping, selling, disposing of, preparing for sale
    and/or advertising to sell the Collateral, whether or not a sale
    is consummated; costs and expenses of suit incurred by Bank in
    enforcing or defending this Agreement or any portion hereof,
    including, but not limited to, expenses incurred by Bank in
    attempting to obtain relief from any stay, restraining order,
    injunction or similar process which prohibits Bank from
    exercising any of its rights or remedies; and attorneys' fees and
    expenses incurred by Bank in advising, structuring, drafting,
    reviewing, amending, terminating, enforcing, defending or
    concerning this Agreement, or any portion hereof or any agreement
    related hereto, whether or not suit is brought.  Bank Expenses
    shall include Bank's in-house legal charges at reasonable rates.

           1.3     "Base Rate" as used in this Agreement means that
    variable rate of interest so announced by Bank at its
    headquarters office in San Jose, California as its "Base Rate"
    from time to time and which serves as the basis upon which
    effective rates of Interest are calculated for those loans making
    reference thereto.

           1.4     "Borrower's Books" as used in this Agreement means
    and includes all of the Borrower's books and records including
    but not limited to: minute books; ledgers; records indicating,
    summarizing or evidencing Borrower's assets, liabilities,
    Receivables, business operations or financial condition, and all
    Information relating thereto, computer programs; computer disk or
    tape files; computer printouts; computer runs; and other computer
    prepared information and equipment of any kind.

           1.5     "Borrowing Base" as used in this Agreement means
    the sum of (1) Seventy-Five percent  (75.000%) of the net amount
    of Eligible Accounts after deducting therefrom all payments,
    adjustments and credits applicable thereto ("Accounts Receivable
    Borrowing Base"); and (2) the amount, if any, of the advances
    against Inventory agreed to be made pursuant to any Inventory
    Rider ("Inventory Borrowing Base"), or other rider, amendment or
    modification to this Agreement, that may now or hereafter be
    entered into by Bank anti Borrower.

           1.6     "Cash Flow" as used in this Agreement means, for
    any applicable period of determination, the Net Income (after
    deduction for Income taxes and other taxes of such person
    determined by reference to income or profits of such person) for
    such period, plus, to the extent deducted In computation of such
    Net Income, the amount of depreciation and amortization expense
    and the amount of deferred tax liability during such period, all
    as determined in accordance with GAAP.  The applicable period of
    determination will annually, beginning with the period from
    January 1, 2000 to December 31, 2000.

           1.7     "Collateral" as used in this Agreement means and
    includes each and all of the following: the Receivables; the
    Intangibles; the negotiable collateral, the Inventory; all money,
    deposit accounts and all other assets of Borrower in which Bank
    receives a security interest or which hereafter come into the
    possession, custody or control of Bank; and the proceeds of any
    of the foregoing, including, but not limited to, proceeds of
    insurance covering the collateral and any and all Receivables.
    Intangibles, negotiable collateral, Inventory, equipment, money,
    deposit accounts or other tangible and intangible property of
    borrower resulting from the sale or other disposition of the
    collateral, and the proceeds thereof.  Notwithstanding anything
    to the contrary contained herein, collateral shall not include
    any waste or other materials which have been or may be designated
    as toxic or hazardous by Bank.

           1.8     "Credit" as used in this Agreement means all
    Obligations, except those obligations arising pursuant to any
    other separate contract, instrument, note, or other separate
    agreement which, by its terms, provides for a specified interest
    rate and term.
                                       1.
<PAGE>

           1.9     "Current Assets" as used in this Agreement means,
    as of any applicable date of determination, all cash, non-
    affiliated customer receivables, United States government
    securities, claims against the United States government, and
    inventories.

           1.10    "Current Liabilities" as used in this Agreement
    means, as of any applicable date of determination, (i) all
    liabilities of a person that should be classified as current in
    accordance with GAAP, including without limitation any portion of
    the principal of the indebtedness classified as current, plus
    (ii) to the extent not otherwise included, all liabilities of the
    Borrower to any of its affiliates whether or not classified as
    current In accordance with GAAP.

           1.11    "Daily Balance" as used in this Agreement means
    the amount determined by taking the amount of the Credit owed at
    the beginning of a given day, adding any new Credit advanced or
    incurred on such date, and subtracting any payments or
    collections which are deemed to be paid and are applied by Bank
    in reduction of the Credit on that date under the provisions of
    this Agreement.

           1.12    "Eligible Accounts" as used in this Agreement
    means and includes those accounts of Borrower which are due and
    payable within thirty (30) days, or less, from the date of
    invoice, have been validly assigned to Bank and strictly comply
    with all of Borrower's warranties and representations to Bank;
    but Eligible Accounts shall not include the following:
    (a) accounts with respect to which the account debtor is an
    officer, employee, partner, joint venturer or agent of Borrower;
    (b) accounts with respect to which goods are placed on
    consignment, guaranteed sale or other terms by reason of which
    the payment by the account debtor may be conditional;
    (c) accounts with respect to which the account debtor Is not a
    resident of the United States; (d) accounts with respect to which
    the account debtor is the United States or any department, agency
    or instrumentality of the United States; (e) accounts with
    respect to which the account debtor is any State of the United
    States or any city, county, town, municipality or division
    thereof; (f) accounts with respect to which the account debtor is
    a subsidiary of, related to, affiliated or has common
    shareholders, officers or directors with Borrower; (g) 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; (h) accounts not paid by an account debtor
    within ninety (90) days from the date of the invoice;
    (i) accounts with respect to which account debtors dispute
    liability or make any claim, or have any defense, crossclaim,
    counterclaim, or offset; (j) accounts with respect to which any
    Insolvency Proceeding is filed by or against the account debtor,
    or if an account debtor becomes insolvent, fails or goes out of
    business; and (k) accounts owed by any single account debtor
    which exceed twenty percent (20%) of all of the Eligible
    Accounts; and (l) accounts with a particular account debtor on
    which over twenty-five percent (25 %) of the aggregate amount
    owing is greater than ninety (90) days from the date of the
    invoice.

           1.13    "Event of Default" as used in this Agreement means
    those events described in Section 7 contained herein below.

           1.14    "Fixed Charges" as used in this Agreement means
    and includes, for any applicable period of determination, the
    sum, without duplication, of (a) all interest paid or payable
    during such period by a person on debt of such person, plus
    (b) all payments of principal or other sums paid or payable
    during such period by such person with respect to debt of such
    person having a final maturity more than one year from the date
    of creation of such debt, plus (c) all debt discount and expense
    amortized or required to be amortized during such period by such
    person, plus (d) the maximum amount of all rents and oilier
    payments paid or required to be paid by such person during such
    period under any lease or other contract or arrangement providing
    for use of real or personal property In respect of which such
    person is obligated as a lessee, use or obligor, plus (e) all
    dividends and other distributions paid or payable by such person
    or otherwise accumulating during such period on any capital stock
    of such person, plus (f) all loans or other advances made by such
    person during such
    period to any Affiliate of such person.  The applicable period of
    determination will be  [non-applicable], beginning with period
    from ____________________ to ____________________ .

           1.15    "GAAP"as used in this Agreement means as of any
    applicable period, generally accepted accounting principles in
    effect during such period.

           1.16    "Insolvency Proceeding" as used in this Agreement
    means and includes any proceeding or case commenced by or against
    the Borrower, or any guarantor of Borrower's Obligations, or any
    of borrower's account debtors, under any provisions of the
    Bankruptcy Code, as amended, or any other bankruptcy or
    Insolvency law, including but not limited to assignments for time
    benefit of creditors, formal or informal moratoriums, composition
    or extensions with some or all creditors, any proceeding seeking
    a reorganization, arrangement or any other relief under the
    Bankruptcy code, as amended, or any other bankruptcy or
    insolvency law.

           1.17    "Intangibles" as used in this Agreement means and
    Includes all of Borrower's present and future general Intangibles
    and other personal property (including, without limitation, any
    and all rights In any legal proceedings, goodwill, patents, trade
    names, copyrights, trademarks, blueprints, drawings, purchase
    orders, computer programs, computer disks, computer tapes,
    literature, reports, catalogs and deposit accounts) other than
    goods and Receivables, as well as Borrower's Books relating to
    any of the foregoing.

           1.18    "Inventory" as used in this Agreement means and
    includes all present and future inventory in which Borrower has
    any interest, including, but not limited to, goods held by
    borrower for sale or lease or to be furnished under a contract of
    service and all of Borrower's present and future raw materials,
    work in process, finished goods, advertising materials, and
    packing and shipping materials, wherever located and any
    documents of title representing any of the above, and any
    equipment, fixtures or other property used in the storing,
    moving, preserving, identifying, accounting for and shipping or
    preparing for the shipping of inventory, and any and all other
    items hereafter acquired by Borrower by way of substitution,

                                   2.
<PAGE>

    replacement, return, repossession or otherwise, and all additions
    and accessions thereto, and the resulting product or mass, and
    any documents of title respecting any of the above.

           1.19    "Net Income" as used in this Agreement means the
    net income (or loss) of a person for any period determined in
    accordance with GAAP but excluding in any event:

              a.   any gains or losses on the sale or other
         disposition, not in the ordinary course of business, of
         investments or fixed or capital assets, and any taxes on
         time excluded gains and any tax deductions or credits on
         account on any excluded losses; and

              b.   in time case of time Borrower, net earnings of any
         Person in which Borrower has an ownership interest, unless
         such net earnings shall have actually been received by
         Borrower in time form of cash distributions.

           1.20    "Judicial Officer or Assignee" as used in this
    Agreement means and includes any trustee, receiver, controller,
    custodian, assignee for the benefit of creditors or any other
    person or entity having powers or duties like or similar to the
    powers and duties of trustee, receiver, controller, custodian or
    assignee for time benefit of creditors.

           1.21    "Obligations" as used in this Agreement means and
    includes any and all loans, advances, overdrafts, debts,
    liabilities (including, without limitation, any and all amounts
    charged to Borrower's account pursuant to any agreement
    authorizing Bank to charge Borrower's account), obligations,
    lease payments, guaranties, covenants and duties owing by
    Borrower to Bank of any kind and description whether advanced
    pursuant to or evidenced by this Agreement; by any note or other
    instrument; or by any other agreement between Bank and Borrower
    and whether or not for time payment of money, whether direct or
    indirect, absolute or contingent, due or to become due, now
    existing or hereafter arising, and including, without limitation,
    any debt, liability or obligation owing from Borrower to others
    which Bank may have obtained by assignment, participation,
    purchase or otherwise, and further Including, without limitation,
    all interest not paid when due and all Bank Expenses which
    Borrower is required to pay or reimburse by this Agreement, by
    law, or otherwise.

           1.22    "Person" or "person" as used in this Agreement
    means and includes any individual, corporation, partnership,
    joint venture, association, trust, unincorporated association,
    joint stock company, government, municipality, political
    subdivision or agency, or other entity.

           1.23    "Receivables" as used in this Agreement means and
    includes all presently existing and hereafter arising accounts,
    instruments, documents, chattel paper, general intangibles, all
    other forms of obligations owing to Borrower, all of Borrower's
    rights in, to and under all purchase orders heretofore or
    hereafter received, all moneys due to Borrower under all
    contracts or agreements (whether or not yet earned or due), all
    merchandise returned to or reclaimed by Borrower and the
    Borrower's books (except minute books) relating to any of the
    foregoing.

           1.24    "Subordinated Debt" as used in this Agreement
    means indebtedness of the Borrower to third parties which has
    been subordinated to the Obligations pursuant to a subordination
    agreement in form and content satisfactory to the Bank.

           1.25    "Subordination Agreement" as used in this
    Agreement means a subordination agreement in form satisfactory to
    Bank making all present and future indebtedness of the Borrower
    to [non-applicable] subordinate to the Obligations.

           1.26    "Tangible Effective Net Worth" as used in this
    Agreement means net worth as determined in accordance with GAAP
    consistently applied, increased by Subordinated Debt, if any, and
    decreased by the following: patents, licenses, goodwill,
    subscription lists, organization expenses, trade receivables
    converted to notes, money due from affiliates (including
    officers, directors, subsidiaries and commonly held companies).

           1.27    "Tangible Net Worth"as used in this Agreement
    means, as of any applicable date of determination, the excess of

              a.   the net book value of all assets of a person
         (other than patents, patent rights, trademarks, trade names,
         franchises, copyrights, licenses, goodwill, and similar
         intangible assets) after all appropriate deductions In
         accordance whim GAAP (including, without limitation,
         reserves for doubtful receivables, obsolescence,
         depreciation anti amortization), over

              b.   all Debt of such person.

           1.28    "Total Liabilities" as used in this Agreement
    means the total of all items of indebtedness, obligation or
    liability which, in accordance with GAAP consistently applied,
    would be Included in determining the total liabilities of the
    Borrower as of the date total Liabilities is to be determined,
    including without limitation (a) all obligations secured by any
    mortgage, pledge, security interest or other lien on property
    owned or acquired, whether or not the obligations secured thereby
    shall have been assumed; (b) all obligations which are
    capitalized lease obligations; and (c) all guaranties,
    endorsements or other contingent or surety obligations with
    respect to the indebtedness of others, whether or not reflected
    on the balance sheets of the borrower, including any obligation
    to furnish funds, directly or indirectly through the purchase of
    goods, supplies, services, or by way of stock purchase, capital
    contribution, advance or loan or any obligation to enter into a
    contract for any of the foregoing.

           1.29    "Working Capital" as used in this Agreement means,
    as of any applicable date of determination, Current Assets less
    Current Liabilities.
                                      3.
<PAGE>

           1.30    Any and all terms used in this Agreement shall be
    construed and defined in accordance with the meaning and
    definition of such terms under and pursuant to the California
    Uniform commercial Code (hereinafter referred to as the "Code")
    as amended.

    2.   LOAN AND TERMS OF PAYMENT

         For value received, Borrower promises to pay to the order of
         Bank such amount, as provided for below, together with
         interest, as provided for below.

           2.1     Upon the request of Borrower, made at any time and
    from time to time during the term hereof, and so long as no Event
    of Default has occurred, Bank shall lend to Borrower an amount
    equal to the Borrowing Base; provided, however, that in no event
    shall Bank be obligated to make advances to Borrower under this
    Section 2.1 whenever the Daily Balance exceeds, at any time,
    either the Borrowing Base or the sum of Two Million and no/100
    ($2,000,000.00), such amount being referred to herein as an
    "Overadvance".

    See Addendum attached hereto and made a part hereof.

           2.2     Except as hereinbelow provided, the Credit shall
    bear interest, on the Daily Balance owing, at a rate of Zero
    25/100 (0.250) percentage points per annum above the Base Rate
    (the "Rate").  the Credit shall bear interest, from and after the
    occurrence of an Event of Default and without constituting a
    waiver of any such Event of Default, on the Daily Balance owing,
    at a rate three (3) percentage points per annum above the Rate.
    All interest chargeable under this Agreement that is based upon
    a per annum calculation shall be computed on the basis of a three
    hundred sixty (360) day year for actual days elapsed.

    See Addendum attached hereto and made a part hereof.

         The Base Rate as of the date of this Agreement is Eight and
    75/100 (8.750%) per annum.  In the event that the Base Rate
    announced is, from time to time hereafter changed, adjustment in
    the Rate shall be made and based on the Base Rate in effect on
    the date of such change.  The Rate, as adjusted, shall apply to
    the Credit until the Base Rate is adjusted again.  The minimum
    interest payable by the Borrower under this Agreement shall in no
    event be less than _________ per month.  All interest payable by
    Borrower under the Credit shall be due and payable on the first
    day of each calendar month during the term of this Agreement.  A
    late payment charge equal to 5% of each late payment may be
    charged on any payment not received by the Bank within 10
    calendar days after the payment due date, but acceptance of
    payment of this charge shall not waive any Default under this
    Agreement.

           2.3     Without affecting Borrower's obligation to repay
    immediately any Overadvance in accordance with Section 2.1
    hereof, all Overadvances shall bear additional interest on the
    amount thereof at a rate equal to ____________________ (_____%)
    percentage points per month in excess of the interest rate set
    forth in Section 2.2, from the date incurred and for each month
    thereafter, until repaid in full.

    3.   TERM.

           3.1     This Agreement shall remain in full force and
    effect until December 15, 2001, or until terminated by notice by
    Borrower.  Notice of such termination by Borrower shall be
    effectuated by mailing of a registered or certified letter not
    less than thirty (30) days prior to the effective date of such
    termination, addressed to the Bank at the address set forth
    herein and the termination shall be effective as of the date so
    fixed in such notice.  Notwithstanding the foregoing, should
    Borrower be in default of one or more of the provisions of this
    Agreement, Bank may terminate this Agreement at any time without
    notice.  Notwithstanding the foregoing, should either Bank or
    Borrower become insolvent or unable to meet its debts as they
    mature, or fail, suspend, or go out of business, the other party
    shall have the right to terminate this Agreement at any time
    without notice.  On the date of termination all Obligations shall
    become immediately due and payable without notice or demand; no
    notice of termination by Borrower shall be effective until
    Borrower shall have paid all Obligations to Bank in full.
    Notwithstanding termination, until all Obligations have been
    fully satisfied, Bank shall retain its security interest in all
    existing Collateral and Collateral arising thereafter, and
    Borrower shall continue to perform all of its Obligations.

           3.2     After termination and when Bank has received
    payment in full of Borrower's Obligations to Bank, Bank shall
    reassign to Borrower all Collateral held by Bank, and shall
    execute a termination of all security agreements and security
    interests given by Borrower to Bank, upon the execution and
    delivery of mutual general releases.

    4.   CREATION OF SECURITY INTEREST

           4.1     Borrower hereby grants to Bank a continuing
    security interest in all presently existing and hereafter arising
    Collateral in order to secure prompt repayment of any and all
    Obligations owed by Borrower to Bank and in order to secure
    prompt performance by Borrower of each and all of its covenants
    and Obligations under this Agreement and otherwise created.
    Bank's security interest in the Collateral shall attach to all
    Collateral without further act on the part of Bank or Borrower.
    In the event that any Collateral, including proceeds, is
    evidenced by or consists of a letter of credit, advice of credit,
    instrument, money, negotiable documents, chattel paper or similar
    property (collectively, "Negotiable Collateral"), Borrower shall,
    immediately upon receipt thereof, endorse and assign such
    Negotiable Collateral over to Bank and deliver actual physical
    possession of the Negotiable Collateral to Bank.

           4.2     Bank's security interest in Receivables shall
    attach to all Receivables without further act on the part of Bank
    or Borrower.  Upon request from Bank, Borrower shall provide Bank
    with schedules describing all Receivables created or acquired by
    Borrower (including without limitation agings listing the names
    and addresses of, and amounts owing by date by account debtors),
    and shall execute and deliver written assignments of all
    Receivables to Bank all in a form acceptable to Bank, provided,
    however, Borrower's failure to execute and deliver such schedules
    and/or assignments shall not affect or limit Bank's security
    interest and other rights in and to the Receivables.  Together
    with each schedule, Borrower shall furnish Bank with copies of

                                    4.
<PAGE>

    Borrower's customers' invoices or the equivalent, and original
    shipping or delivery receipts for all merchandise sold, and
    Borrower warrants the genuineness thereof.  Bank or Bank's
    designee may notify customers or account debtors of collection
    costs and expenses to Borrower's account but, unless and until
    Bank does so or gives Borrower other written instructions,
    Borrower shall collect all Receivables for Bank, receive in trust
    all payments thereon a Bank's trustee, and, if so requested to do
    so from Bank, Borrower shall immediately deliver said payments to
    Bank in their original form as received from the account debtor
    and all letters of credit, advices of credit, instruments,
    documents, chattel paper or any similar property evidencing or
    constituting Collateral.  Notwithstanding anything to the
    contrary contained herein, if sales of Inventory are made for
    cash, Borrower shall immediately deliver to Bank, in identical
    form, all such cash, checks, or other forms of payment which
    Borrower receives.  The receipt of any check or other item of
    payment by Bank shall not be considered a payment on account
    until such check or other item of payment is honored when
    presented for payment, in which event, said check or other item
    of payment shall be deemed to have been paid to Bank two (2)
    calendar days after the date Bank actually receives such check or
    other item of payment.

           4.3     Bank's security interest in Inventory shall attach
    to all Inventory without further act on the part of Bank or
    Borrower.  Upon Bank's request Borrower will from time to time at
    Borrower' expense pledge, assemble and deliver such Inventory to
    Bank or to a third party as bank's bailee; or hold the same in
    trust for Bank's account or store the same in a warehouse in
    Bank's name; or deliver to Bank documents of title representing
    said Inventory; or evidence of Bank's security interest in some
    other manner acceptable to Bank.  Until a default by Borrower
    under this Agreement or any other Agreement between Borrower and
    Bank, Borrower may, subject to the provisions hereof and
    consistent herewith, sell the Inventory, but only in the ordinary
    course of Borrower's business.  A sale of Inventory in Borrower's
    ordinary course of business does not include an exchange or a
    transfer in partial or total satisfaction of a debt owing by
    Borrower.

           4.4     Borrower shall execute and deliver to Bank
    concurrently with Borrower's execution of this Agreement, and at
    any time or times hereafter at the request of Bank, all financing
    statements, continuation financing statements, security
    agreements, mortgages, assignments, certificates of title,
    affidavits, reports, notices, schedules of accounts, letters of
    authority and all other documents that Bank may request, in form
    satisfactory to Bank, to perfected and maintain perfected Bank's
    security interest in the Collateral and in order to fully
    consummate all of the transactions contemplated under this
    Agreement.  Borrower hereby irrevocably makes, constitutes and
    appoints Bank (and any of Bank's officers, employees or agents
    designated by Bank) as Borrower's true and lawful attorney-in-
    fact with power to sign the name of Borrower on any financing
    statements, continuation financing statements, security
    agreement, mortgage, assignment, certificate of title, affidavit,
    letter of authority, notice of other similar documents which must
    be executed and/or filed in order to perfect or continue
    perfected Bank's security interest in the Collateral.

         Borrower shall make appropriate entries in Borrower's Books
    disclosing Bank's security interest in the Receivables.  Bank
    (through any of its officers, employees or agents) shall have the
    right at any time or times hereafter during Borrower's usual
    business hours, or during the usual business hours of any third
    party having control over the records of Borrower, to inspect and
    verify Borrower's Books in order to verify the amount or
    condition of, or any other matter, relating to, said Collateral
    and Borrower's financial condition.

           4.5     Borrower appoints Bank or any other person whom
    Bank may designate as Borrower's attorney-in-fact, with power to
    endorse Borrower's name on any checks, notes, acceptances, money
    order, drafts or other forms of payment or security that may come
    into Bank's possession; to sign Borrower's name on any invoice or
    bill of lading relating to any Receivables, on drafts against
    account debtors, on schedules and assignments of Receivables, on
    verifications of Receivables and on notices to account debtors;
    to establish a lock box arrangement and/or to notify the post
    office authorities to change the address for delivery of
    Borrower's mail addressed to Borrower to an address designated by
    Bank, to receive and open all mail addressed to Borrower, and to
    retain all mail relating to the Collateral and forward all other
    mail to Borrower; to send, whether in writing or by telephone,
    requests for verification of Receivables; and to do all things
    necessary to carry out this Agreement.  Borrower ratifies and
    approves all acts of the attorney-in-fact.  Neither Bank nor its
    attorney-in-fact will be liable for any acts or omissions or for
    any error of judgment or mistake of fact or law.  This power
    being coupled with an interest, is irrevocable so long as any
    Receivables in which Bank has a security interest remain unpaid
    and until the Obligations have been fully satisfied.

           4.6     In order to protect or perfect any security
    interest which Bank is granted hereunder, Bank may, in its sole
    discretion, discharge any lien or encumbrance or bond the same,
    pay any insurance, maintain guards, warehousemen, or any
    personnel to protect the Collateral, pay any service bureau, or,
    obtain any records, and all costs for the same shall be added to
    the Obligations and shall be payable on demand.

           4.7     Borrower agrees that Bank may provide information
    relating to this Agreement or relating to Borrower to Bank's
    parent, affiliates, subsidiaries and service providers.

    5.   CONDITIONS PRECEDENT

           5.1     Conditions preceded to the making of the loans and
    the extension of the financial accommodations hereunder, Borrower
    shall execute, or cause to be executed, and deliver to Bank, in
    form and substance satisfactory to Bank and its counsel, the
    following:

              a.   This Agreement and other documents required by
         Bank;

              b.   Financing statements (Form UCC-1) in form
         satisfactory to Bank for filing and recording with the
         appropriate governmental authorities;

                                     5.
<PAGE>

              c.   If Borrower is a corporation, then certified
         extracts from the minutes of the meeting of its board of
         directors, authorizing the borrowings and the granting of
         the security interest provided for herein and authorizing
         specific officers to execute and deliver the agreements
         provided for herein;

              d.   If Borrower is a corporation, then a certificate
         of good standing showing that Borrower is in good standing
         under the laws of the state of its incorporation and
         certificates indicating that Borrower is qualified to
         transact business and is in good standing in any other state
         in which it conducts business;

              e.   If Borrower is a partnership, then a copy of
         Borrower's partnership agreement certified by each general
         partner of Borrower;

              f.   UCC searches, tax lien and litigation searches,
         fictitious business statement filings, insurance
         certificates, notices or other similar documents which Bank
         may require and in such form as Bank may require, in order
         to reflect, perfect or protect Bank's first priority
         security interest in the Collateral and in order to fully
         consummate all of the transactions contemplated under this
         Agreement;

              g.   Evidence that Borrower has obtained insurance and
         acceptable endorsements;

              h.   Waivers executed by landlords and mortgagees of
         any real property on which any Collateral is located; and

              i.   Warranties and representations of officers.

    6.   WARRANTIES, REPRESENTATIONS AND COVENANTS.

           6.1     If so requested by Bank, Borrower shall, at such
    intervals designated by Bank, during the term hereof execute and
    deliver a Report of Accounts Receivable or similar report, in
    form customarily used by Bank.  Borrower's Borrowing Base at all
    times pertinent hereto shall not be less than the advances made
    hereunder.  Bank shall have the right to recompute Borrower's
    Borrowing Base in conformity with this Agreement.

    * See Addendum attached hereto and made a part hereof.

           6.2     If any warranty is breached as to any account, or
    any account is not paid in full by an account debtor within
    Ninety (90) days from the date of invoice, or an account debtor
    disputes liability or makes any claim with respect thereto, or a
    petition in bankruptcy or other application for relief under the
    Bankruptcy Code or any other insolvency law is filed by or
    against an account debtor, or an account debtor makes an
    assignment for the benefit of creditors, becomes insolvent, fails
    or goes out of business, then Bank may deem ineligible any and
    all accounts owing by that account debtor, and reduce Borrower's
    Borrowing Base by the amount thereof.  Bank shall retain its
    security interest in all Receivables and accounts, whether
    eligible or ineligible, until all Obligations have been fully
    paid and satisfied.  Returns and advances, if any, as between
    Borrower and its customers, will be on the same basis and in
    accordance with the usual customary practices of the Borrower, as
    they exist at this time.  Any merchandise which is returned by an
    account debtor or otherwise recovered shall be set aside, marked
    with Bank's name, and Bank shall retain a security interest
    therein.  Borrower shall promptly notify Bank of all disputes and
    claims and settle or adjust them on terms approved by Bank.
    After default by Borrower hereunder, no account, credit or
    allowance shall be granted to any account debtor by Borrower and
    no return of merchandise shall be accepted by Borrower without
    Bank's consent.  Bank may, after default by Borrower, settle or
    adjust disputes and claims directly with account debtors for
    amounts and upon terms which Bank considers advisable, and in
    such cases Bank will credit Borrower's account with only the net
    amounts received by Bank in payment of the accounts, after
    deducting all Bank Expenses in connection therewith.

           6.3     Borrower warrants, represents, covenants and
    agrees that:

              a.   Borrower has good and marketable title to the
         Collateral.  Bank has and shall continue to have a first
         priority perfected security interest in and to the
         Collateral.  The Collateral shall at all times remain free
         and clear of all liens, encumbrances and security interests
         (except those in favor of Bank).

              b.   All accounts are and will, at the times pertinent
         hereto, be bona fide existing obligations created by the
         sale and delivery of merchandise or the rendition of
         services to account debtors in the ordinary course of
         business, free of liens, claims, encumbrances and security
         interests (except as held by Bank and except as may be
         consented to, in writing, by Bank) and are unconditionally
         owed to Borrower without defenses, disputes, offsets,
         counterclaims, rights of return or cancellation, and
         Borrower shall have received no notice of actual or imminent
         bankruptcy or insolvency of any account debtor at any time
         an account due from such account debtor is assigned to Bank.

              c.   At the time each account is assigned to Bank, all
         property giving rise to such account shall have been
         delivered to the account debtor or to the agent for the
         account debtor for immediate shipment to, and unconditional
         acceptance by, the account debtor.  Borrower shall deliver
         to Bank, as Bank from time to time require, delivery
         receipts, customer's purchase orders, shipping instructions,
         bills of lading and any other evidence of shipping
         arrangements.  Absent such a request by Bank, copies of all
         such documentation shall be held by Borrower as custodian
         for Bank.

           6.4     At the time each Eligible Account is assigned to
    Bank, all such Eligible Accounts will be due and payable on terms
    set forth in Section 1.12, or on such other terms approved in
    writing by Bank in advance of the creation of such accounts and
    which are expressly set forth on the face of all invoices, copies
    of which shall be held by Borrower as custodian for Bank, and no
    such eligible account will then be past due.

                                   6.
<PAGE>

           6.5     Borrower shall keep the Inventory only at the
    following locations:
    _______________________________________________________________
    _____________________________________________________ and the
    owner or mortgagees of the respective locations are:
    ____________________________________________.

              a.   Borrower, immediately upon demand by Bank
         therefor, shall now and from time to time hereafter, at such
         intervals as are requested by Bank, deliver to Bank,
         designations of Inventory specifying Borrower's cost of
         Inventory, the wholesale market value thereof and such other
         matters and information relating to the Inventory as Bank
         may request;

              b.   Borrower's Inventory, valued at the lower of
         Borrower's cost or the wholesale market value thereof, at
         all times pertinent hereto shall not be less than
         _______________________ Dollars ($_________) of which no
         less than ________________________ Dollars ($_________)
         shall be in raw materials and finished goods;

              c.   All of the Inventory is and shall remain free from
         all purchase money or other security interests, liens or
         encumbrances, except as held by Bank;

              d.   Borrower does now keep and hereafter at all times
         shall keep correct and accurate records itemizing and
         describing the kind, type, quality and quantity of the
         Inventory, its cost therefor and selling price thereof, and
         the daily withdrawals therefrom and additions thereto, all
         of which records shall be available upon demand to any of
         Bank's officers, agents and employees for inspection and
         copying;

              e.   All Inventory, now and hereafter at all times,
         shall be new Inventory of good and merchantable quality free
         from defect;

              f.   Inventory is not now and shall not at any time or
         times hereafter be located or stored with a bailee,
         warehouseman or other third party without Bank's prior
         written consent, and, in such event, Borrower will
         concurrently therewith cause any such bailee, warehouseman
         or other third party to issue and deliver to Bank, in a form
         acceptable to Bank, warehouse receipts in Bank's name
         evidencing the storage of Inventory or other evidence of
         Bank's prior rights in the Inventory.  In any event,
         Borrower shall instruct any third party to hold all such
         Inventory for Bank's account subject to Bank's security
         interests and its instructions; and

              g.   Bank shall have the right upon demand now and/or
         at all times hereafter, during Borrower's usual business
         hours, to inspect and examine the Inventory and to check and
         test the same as to quality, quantity, value and condition
         and Borrower agrees to reimburse Bank for Bank's reasonable
         costs and expenses in so doing.

           6.6     Borrower represents, warrants and covenants with
    Bank that Borrower will not, without Bank's prior written
    consent:

              a.   Grant a security interest in or permit a lien,
         claim or encumbrance upon any of the Collateral to any
         person, association, firm, corporation, entity or
         governmental agency or instrumentality;

              b.   Permit any levy, attachment or restraint to be
         made affecting any of Borrower's assets;

              c.   Permit any Judicial Officer or Assignee to be
         appointed or to take possession of any or all of Borrower's
         assets;

              d.   Other than sales of Inventory in the ordinary
         course of Borrower's business, to sell, lease, or otherwise
         dispose of, move, or transfer, whether by sale or otherwise,
         any of Borrower's assets;

              e.   Change its name, business structure, corporate
         identity or structure; add any new fictitious names,
         liquidate, merge or consolidate with or into any other
         business organization;

              f.   Move or relocate any Collateral;

              g.   Acquire any other business organization;

              h.   Enter into any transaction not in the usual course
         of Borrower's business;

              i.   Make any investment in securities of any person,
         association, firm, entity, or corporation other than the
         securities of the United States of America;

              j.   Make any change in Borrower's financial structure
         or in any of its business objectives, purposes or operations
         which would adversely effect the ability of Borrower to
         repay Borrower's Obligations;

              k.   Incur any debts outside the ordinary course of
         Borrower's business except renewals or extensions of
         existing debt and interest thereon;

              l.   Make any advance or loan except in the ordinary
         course of Borrower's business as currently conducted;

                                       7.
<PAGE>

              m.   Make loans, advances or extensions of credit to
         any Person, except for sales on open account and otherwise
         in the ordinary course of business;

              n.   Guarantee or otherwise, directly or indirectly, in
         any way be or become responsible for obligations of any
         other Person, whether by agreement to purchase the
         indebtedness of any other Person, agreement for the
         furnishing of funds to any other Person through the
         furnishing of goods, supplies or services, by way of stock
         purchase, capital contribution, advance or loan, for the
         purpose of paying or discharging (or causing the payment or
         discharge of) the indebtedness of any other Person, or
         otherwise, except for the endorsement of negotiable
         instruments by the Borrower in the ordinary course of
         business for deposit or collection.

              o.   (a) Sell, lease, transfer or otherwise dispose of
         properties and assets having an aggregate book value of more
         than _________________________ Dollars ($__________)
         (whether in one transaction or in a series of transactions)
         except as to the sale of inventory in the ordinary course of
         business; (b) change its name, consolidate with or merge
         into any other corporation, permit another corporation to
         merge into it, acquire all or substantially all the
         properties or assets of any other Person, enter into any
         reorganization or recapitalization or  reclassify its
         capital stock, or (c) enter into any sale-leaseback
         transaction;

              p.   Subordinate any indebtedness due to it from a
         person to indebtedness of other creditors of such person;

              q.   Purchase or hold beneficially any stock or other
         securities of, or make any investment or acquire any
         interest whatsoever in, any other Person, except for the
         common stock of the Subsidiaries owned by the Borrower on
         the date of this Agreement and except for certificates of
         deposit with maturities of one year or less of United States
         commercial banks with capital, surplus and undivided profits
         in excess of $100,000,000 and direct obligations of the
         United States Government maturing within one year from the
         date of acquisition thereof; or

              r.   Allow any fact, condition or event to occur or
         exist with respect to any employee pension or profit sharing
         plan established or maintained by it which might constitute
         grounds for termination of any such plan or for the court
         appointment of a trustee to administer any such plan.

           6.7     Borrower is not a merchant whose sales for resale
    of goods for personal, family or household purposes exceeded
    seventy-five percent (75%) in dollar volume of its total sales of
    all goods during the 12 months preceding the filing by Bank of a
    financing statement describing the Collateral.  At no time
    hereafter shall Borrower's sales for resale of goods for
    personal, family or household purposes exceed seventy-five
    percent (75%) in dollar volume of its total sales.

           6.8     Borrower's sole place of business or chief
    executive office or residence is located at the address indicated
    above and Borrower covenants and agrees that it will not, during
    the term of this Agreement, without prior written notification to
    Bank, relocate said sole place of business or chief executive
    office or residence.

           6.9     If Borrower is a corporation, Borrower represents,
    warrants and covenants as follows:

              a.   Borrower will not make any distribution or declare
         or pay any dividend (in stock or in cash) to any shareholder
         or on any of its capital stock, of any class, whether now or
         hereafter outstanding, or purchase, acquire, repurchase,
         redeem or retire any such capital stock;

              b.   Borrower is and shall at all times hereafter be a
         corporation duly organized and existing in good standing
         under the laws of the state of its incorporation and
         qualified and licensed to do business in California or any
         other state in which it conducts its business;

              c.   Borrower has the right and power and is duly
         authorized to enter into this Agreement; and

              d.   The execution by Borrower of this Agreement shall
         not constitute a breach of any provision contained in
         Borrower's articles of incorporation or by-laws.

           6.10    The execution of and performance by Borrower of
    all of the terms and provisions contained in this Agreement shall
    not result in a breach of or constitute an event of default under
    any agreement to which Borrower is now or hereafter becomes a
    party.

           6.11    Borrower shall promptly notify Bank in writing of
    its acquisition by purchase, lease or otherwise of any after
    acquired property of the type included in the Collateral, with
    the exception of purchases of Inventory in the ordinary course of
    business.

           6.12    All assessments and taxes, whether real, personal
    or otherwise, due or payable by, or imposed, levied or assessed
    against, Borrower or any of its property have been paid, and
    shall hereafter be paid in full, before delinquency.  Borrower
    shall make due and timely payment or deposit of all federal,
    state and local taxes, assessments or contributions required of
    it by law, and will execute and deliver to Bank, on demand,
    appropriate certificates attesting to the payment or deposit
    thereof.  Borrower will make timely payment or deposit of all
    F.I.C.A. payments and withholding taxes required of it by
    applicable laws, and will upon request furnish Bank with proof
    satisfactory to it that Borrower has made such payments or
    deposit.  If Borrower fails to pay any such assessment, tax,
    contribution, or make such deposit, or furnish the required
    proof, Bank may, in its sole and absolute discretion and without

                                   8.
<PAGE>

    notice to Borrower; (i) make payment of the same or any part
    thereof; or (ii) set up such reserves in Borrower's account as
    Bank deems necessary to satisfy the liability therefor, or both.
    Bank may conclusively rely on the usual statements of the amount
    owing or other official statements issued by the appropriate
    governmental agency.  Each amount so paid or deposited by Bank
    shall constitute a Bank Expense and an additional advance to
    Borrower.

           6.13    There are no actions or proceedings pending by or
    against Borrower or any guarantor of Borrower before any court or
    administrative agency and Borrower has no knowledge of any
    pending, threatened or imminent litigation, governmental
    investigations or claims, complaints, actions or prosecutions
    involving Borrower or any guarantor of Borrower, except as
    heretofore specifically disclosed in writing to Bank.  If any of
    the foregoing arise during the term of the Agreement, Borrower
    shall immediately notify Bank in writing.

           6.14    a.  Borrower, at its expense, shall keep and
    maintain its assets insured against loss or damage by fire,
    theft, explosion, sprinklers and all other hazards and risks
    ordinarily insured against by other owners who use such
    properties in similar businesses for the full insurable value
    thereof.  Borrower shall also keep and maintain business
    interruption insurance and public liability and property damage
    insurance relating to Borrower's ownership and use of the
    Collateral and its other assets.  All such policies of insurance
    shall be in such form, with such companies, and in such amounts
    as may be satisfactory to Bank.  Borrower shall deliver to Bank
    certified copies of such policies of insurance and evidence of
    the payments of all premiums therefor.  All such policies of
    insurance (except those of public liability and property damage)
    shall contain an endorsement in a form satisfactory to Bank
    showing Bank as a loss payee thereof, with a waiver of warranties
    (form 438-BFU), and all proceeds payable thereunder shall be
    payable to Bank and, upon receipt by Bank, shall be applied on
    account of the Obligations owing to Bank.  To secure the payment
    of the Obligations, Borrower grants Bank a security interest in
    and to all such policies of insurance (except those of public
    liability and property damage) and the proceeds thereof, and
    Borrower shall direct all insurers under such policies of
    insurance to pay all proceeds thereof directly to Bank.

              b.   Borrower hereby irrevocably appoints Bank (and any
    of Bank's officers, employees or agents designated by Bank) as
    Borrower's attorney for the purpose of making, selling and
    adjusting claims under such policies of insurance, endorsing the
    name of Borrower on any check, draft, instrument or other item of
    payment for the proceeds of such policies of insurance and for
    making all determinations and decisions with respect to such
    policies of insurance.  Borrower will not cancel any of such
    policies without Bank's prior written consent.  Each such insurer
    shall agree by endorsement upon the policy or policies of
    insurance issued by it to Borrower as required above, or by
    independent instruments furnished to Bank, that it will give Bank
    at least ten (10) days written notice before any such policy or
    policies of insurance shall be altered or cancelled, and that no
    act or default of Borrower, or any other person, shall affect the
    right of Bank to recover under such policy or policies of
    insurance required above or to pay any premiums in whole or in
    part relating thereto.  Bank, without waiving or releasing any
    Obligations or any Event of Default, may, but shall have no
    obligation to do so, obtain and maintain such policies of
    insurance and pay such premiums and take any other action with
    respect to such policies which Bank deems advisable.  All sums so
    disbursed by Bank, as well as reasonable attorneys' fees, court
    costs, expenses and other charges relating thereto, shall
    constitute Bank Expenses and are payable on demand.

           6.15    All financial statements and information relating
    to Borrower which have been or may hereafter be delivered by
    Borrower to Bank are true and correct and have been prepared in
    accordance with GAAP consistently applied and there has been no
    material adverse change in the financial condition of Borrower
    since the submission of such financial information to Bank.

           6.16    a.  Borrower at all times hereafter shall maintain
    a standard and modern system of accounting in accordance with
    GAAP consistently applied with ledger and account cards and/or
    computer tapes and computer disks, computer printouts and
    computer records pertaining to the Collateral which contain
    information as may from time to time be requested by Bank, not
    modify or change its method of accounting or enter into, modify
    or terminate any agreement presently existing, or at any time
    hereafter entered into with any third party accounting firm
    and/or service bureau for the preparation and/or storage of
    Borrower's accounting records without the written consent of Bank
    first obtained and without said accounting firm and/or service
    bureau agreeing to provide information regarding the Receivables
    and Inventory and Borrower's financial condition to Bank; permit
    Bank and any of its employees, officers or agents, upon demand,
    during Borrower's usual business hours, or the usual business
    hour of third persons having control thereof, to have access to
    and examine all of the Borrower's Books relating to the
    Collateral, Borrower's Obligations to Bank, Borrower's financial
    condition and the results of Borrower's operations and in
    connection therewith, permit Bank or any of its agents, employees
    or officers to copy and make extracts therefrom.

              b.   Borrower shall deliver to Bank within thirty (30)
    days after the end of each Quarter, a COMPANY PREPARED balance
    sheet and profit and loss statement covering Borrower's
    operations and deliver to Bank within ninety (90) days after the
    end of each of Borrower's fiscal years an AUDITED statement of
    the financial condition of the Borrower for each such fiscal
    year, including but not limited to, a balance sheet and profit
    and loss statement and any other report requested by Bank
    relating to the Collateral and the financial condition of
    Borrower, and a certificate signed by an authorized employee of
    Borrower to the effect that all reports, statements, computer
    disk or tape files, computer printouts, computer runs, or other
    computer prepared information of any kind or nature relating to
    the foregoing or documents delivered or caused to be delivered to
    Bank under this subparagraph are complete, correct and thoroughly
    present the financial condition of borrower and that there exists
    on the date of delivery to Bank no condition or event which
    constitutes a breach or Event of Default under this Agreement.

                                      9.

<PAGE>
              c.   In addition to the financial statements requested
    above, the Borrower agrees to provide Bank with the following
    schedules:

                   XX Accounts Receivable Agings on a quarterly
    basis;

                   XX Accounts Payable Agings on a quarterly basis;

                   ___ Job Progress Reports on a _________ basis; and

                   XX Borrowing Base Certificates on a quarterly
    basis.

    See Addendum attached hereto and made a part hereof.

           6.17    Borrower shall maintain the following financial
    ratios and covenants on a consolidated and non-consolidated
    basis:

              a.   Working Capital in an amount not less than
         _________________________________________________________.

              b.   Tangible Effective Net Worth in an amount not less
         than ____________________________________________________.

              c.   a ratio of Current Assets to a Current Liabilities
         of not less than
         __________________________________________________________.

              d.   a quick ratio of cash plus securities plus
         Receivables to Current Liabilities of not less than
         1.20:1.00.

              e.   a ratio of Total Liabilities (less debt
         subordinated to Bank) to Tangible Effective Net Worth of
         less than 1.75:1.00.

              f.   a ratio of Cash Flow to Fixed Charges of not less
         than 1.50:1.00.

              g.   Net Income after taxes of $1.00 (measured on a
         quarterly basis).

              h.   Borrower shall not without Bank's prior written
         consent acquire or expend for or commit itself to acquire or
         expend for fixed assets by lease, purchase or otherwise in
         an aggregate amount that exceeds __________________ Dollars
         ($________) in any fiscal year; and

              i.   ___________________________________________________
         _____________________________________________________________.

         All financial covenants shall be computed in accordance with
    GAAP consistently applied except as otherwise specifically set
    forth in this Agreement.  All monies due from affiliates
    (including officers, directors and shareholders) shall be
    excluded from Borrower's assets for all purposes hereunder.

           6.18    Borrower shall promptly supply Bank (and cause any
    guarantor to supply Bank) with such other information (including
    tax returns) concerning its financial affairs (or that of any
    guarantor) as Bank may request from time to time hereafter, and
    shall promptly notify Bank of any material adverse change in
    Borrower's financial condition and of any condition or event
    which constitutes a breach of or an event which constitutes an
    Event of Default under this Agreement.

           6.19    Borrower is now and shall be at all times
    hereafter solvent and able to pay its debts (including trade
    debts) as they mature.

           6.20    Borrower shall immediately and without demand
    reimburse Bank for all sums expended by Bank in connection with
    any action brought by Bank to correct any default or enforce any
    provision of this Agreement, including all Bank Expenses;
    Borrower authorizes and approves all advances and payments by
    Bank for items described in this Agreement as Bank Expenses.

           6.21    Each warranty, representation and agreement
    contained in this Agreement shall be automatically deemed
    repeated with each advance and shall be conclusively presumed to
    have been relied on by Bank regardless of any investigation made
    or information possessed by Bank.  The warranties,
    representations and agreements set forth herein shall be
    cumulative and in addition to any and all other warranties,
    representations and agreements which Borrower shall give, or
    cause to be given, to Bank, either now or hereafter.

           6.22    Borrower shall keep all of its principal bank
    accounts with Bank and shall notify the Bank immediately in
    writing of the existence of any other bank account, deposit
    account, or any other account into which money can be deposited.

           6.23    Borrower shall furnish to the Bank:  (a) as soon
    as possible, but in no event later than thirty (30) days after
    Borrower knows or has reason to know that any reportable event

                                  10.

<PAGE>

    with respect to any deferred compensation plan has occurred, a
    statement of the chief financial officer of Borrower setting
    forth the details concerning such reportable event and the action
    which Borrower proposes to take with respect thereto, together
    with a copy of the notice of such reportable event given to the
    Pension Benefit Guaranty Corporation, if a copy of such notice is
    available to Borrower; (b) promptly after the filing thereof with
    the United States Secretary of Labor or the Pension Benefit
    Guaranty Corporation, copies of each annual report with respect
    to each deferred compensation plan; (c) promptly after receipt
    thereof, a copy of any notice Borrower may receive from the
    Pension Benefit Guaranty Corporation or the Internal Revenue
    Service with respect to any deferred compensation plan; provided,
    however, this subparagraph shall not apply to notice of general
    application issued by the Pension Benefit Guaranty Corporation or
    the Internal Revenue Service; and (d) when the same is made
    available to participants in the deferred compensation plan, all
    notices and other forms of information from time to time
    disseminated to the participants by the administrator of the
    deferred compensation plan.

           6.24    Borrower is now and shall at all times hereafter
    remain in compliance with all federal, state and municipal laws,
    regulations and ordinances relating to the handling, treatment
    and disposal of toxic substances, wastes and hazardous material
    and shall maintain all necessary authorizations and permits.

           6.25    Borrower shall maintain insurance on the life of
    _________________ in an amount not to be less than
    __________________________ Dollars ($_________) under one or more
    policies issued by insurance companies satisfactory to Bank,
    which policies shall be assigned to Bank as security for the
    Obligations and on which Bank shall be named as sole beneficiary.

           6.26    Borrower shall limit direct and indirect
    compensation paid to the following employees:
    ________________________, ________________________,
    ________________________, to an aggregate of
    ________________________ Dollars ($__________) per
    ________________________.

           6.27    Borrower shall perform all acts reasonably
    necessary to ensure that:  (i) Borrower and any business in which
    Borrower holds a substantial interest, and (ii) all customers,
    suppliers and vendors that are material to Borrower's business,
    become Year 2000 Compliant in a timely manner.  Such acts shall
    include, without limitation, performing a comprehensive review
    and assessment of all of Borrower's systems and adopting a
    detailed plan, with itemized budget, for the remediation,
    monitoring and testing of such systems.  As used in this
    paragraph, "Year 2000 Compliant" shall mean, in regard to any
    entity, that all software, hardware, firmware, equipment, goods
    or systems utilized by or material to the business operations or
    financial condition of such entity, will properly perform date
    sensitive function before, during and after the year 2000.
    Borrower shall, immediately upon request, provide to Bank such
    certifications or other evidence of Borrower's compliance with
    terms of this paragraph as Bank may from time to time require.

    7.   EVENTS OF DEFAULT.

              Any one or more of the following events shall
    constitute a default by Borrower under this Agreement:

              a.   If Borrower fails or neglects to perform, keep or
         observe any term, provision, condition, covenant, agreement,
         warranty or representation contained in this Agreement, or
         any other present or future agreement between Borrower and
         Bank;

              b.   If any representation, statement, report or
         certificate made or delivered by Borrower, or any of its
         officers, employees or agents to Bank is not true and
         correct;

              c.   If Borrower fails to pay when due and payable or
         declared due and payable, all or any portion of the
         Borrower's Obligations (whether of principal, interest,
         taxes, reimbursement of Bank Expenses, or otherwise);

              d.   If there is a material impairment of the prospect
         of repayment of all or any portion of Borrower's Obligations
         or a material impairment of the value or priority of Bank's
         security interest in the Collateral;

              e.   If all or any of Borrower's assets are attached,
         seized, subject to a writ or distress warrant, or are levied
         upon, or come into the possession of any Judicial Officer or
         Assignee and the same are not released, discharged or bonded
         against within ten (10) days thereafter;

              f.   If any Insolvency Proceeding is filed or commenced
         by or against Borrower without being dismissed within ten
         (10) days thereafter;

              g.   If any proceeding is filed or commenced by or
         against Borrower for its dissolution or liquidation;

              h.   If Borrower is enjoined, restrained or in any way
         prevented by court order from continuing to conduct all or
         any material part of its business affairs;

              i.   If a notice of lien, levy or assessment is filed
         of record with respect to any or all of Borrower's assets by
         the United States Government, or any department, agency or
         instrumentality thereof, or by any state, county, municipal
         or other government agency, or if any taxes or debts owing
         at any time hereafter to any one or more of such entities
         becomes a lien, whether choate or otherwise, upon any or all
         of the Borrower's assets and the same is not paid on the
         payment date thereof;

              j.   If a judgment or other claim becomes a lien or
         encumbrance upon any or all of Borrower's assets and the
         same is not satisfied, dismissed or bonded against within
         ten (10) days thereafter;

              k.   If Borrower's records are prepared and kept by an
         outside computer service bureau at the time this Agreement
         is entered into or during the term of this Agreement such an
         agreement with an outside service bureau is entered into,
         and at any time thereafter, without first obtaining the
         written consent of Bank, Borrower terminates, modifies,
         amends or changes its contractual relationship with said
         computer service bureau or said computer service bureau
         fails to provide Bank with any requested information or
         financial data pertaining to Bank's Collateral, Borrower's
         financial condition or the results of Borrower's operations;

                                       11.
<PAGE>
              l.   If Borrower permits a default in any material
         agreement in which Borrower is a party with third parties so
         as to result in an acceleration of the maturity of
         Borrower's indebtedness to others, whether under any
         indenture, agreement or otherwise;

              m.   If Borrower makes any payment on account of
         indebtedness which has been subordinated to Borrower's
         Obligations to Bank;

              n.   If any misrepresentation exists now or thereafter
         in any warranty or  representation made to Bank by any
         officer or director of Borrower, or if any such warranty or
         representation is withdrawn by any officer or director;

              o.   If any party subordinating its claims to that of
         Bank's or any guarantor of Borrower's Obligations dies or
         terminates its subordination or guaranty, becomes insolvent
         or an Insolvency Proceeding is commenced by or against any
         such subordinating party or guarantor;

              p.   If Borrower is an individual and Borrower dies;

              q.   If there is a change of ownership or control of
         ________________ percent (___%) or more of the issued and
         outstanding stock of Borrower; or

              r.   If any reportable event, which the Bank determines
         constitutes grounds for the termination of any deferred
         compensation plan by the Pension Benefit Guaranty
         Corporation or for the appointment by the appropriate United
         States District Court of a trustee to administer any such
         plan, shall have occurred  and be continuing thirty (30)
         days after written notice of such determination shall have
         been given to Borrower by Bank, or any such Plan shall be
         terminated within  the meaning of Title IV of the Employment
         Retirement Income Security Act ("ERISA"), or a trustee shall
         be appointed by the appropriate United States District Court
         to administer any such plan, or the Pension Benefit Guaranty
         Corporation shall institute proceedings to terminate any
         plan and in case of any event described in this Section 7.0,
         the aggregate amount of the Borrower's liability to the
         Pension Benefit Guaranty Corporation under Sections 4062,
         4063 or 4064 of ERISA shall exceed five percent (5%) of
         Borrower's Tangible Effective Net Worth.

              Notwithstanding anything contained in Section 7 to the
    contrary, Bank shall refrain from exercising its rights and
    remedies and Event of Default shall thereafter not be deemed to
    have occurred by reason of the occurrence of any of the events
    set forth in Sections 7.3, 7.f or 7.j of this Agreement if,
    within ten (10) days from the date thereof, the same is released,
    discharged, dismissed, bonded against or satisfied; provided,
    however, if the event is the institution of Insolvency
    Proceedings against Borrower, Bank shall not be obligated to make
    advances to Borrower during such cure period.

    8.   BANK'S RIGHTS AND REMEDIES.

           8.1     Upon the occurrence of an Event of Default by
    Borrower under this Agreement, Bank may, at its election, without
    notice of its election and without demand, do any one or more of
    the following, all of which are authorized by Borrower:

              a.   Declare Borrower's Obligations, whether evidenced
         by this Agreement, installment notes, demand notes or
         otherwise, immediately due and payable to the Bank;

              b.   Cease advancing money or extending credit to or
         for the benefit of Borrower under this Agreement, or any
         other agreement between Borrower and Bank;

              c.   Terminate this Agreement as to any future
         liability or obligation of Bank, but without affecting
         Bank's rights and security interests in the Collateral, and
         the Obligations of Borrower to Bank;

              d.   Without notice to or demand upon Borrower or any
         guarantor, make such payments and do such acts as Bank
         considers necessary or reasonable to protect its security
         interest in the Collateral.  Borrower agrees to assemble the
         Collateral if Bank so requires and to make the Collateral
         available to Bank as Bank may designate.  Borrower
         authorizes Bank to enter the premises where the Collateral
         is located, take and maintain possession of the Collateral
         and the premises (at no charge to Bank), or any part
         thereof, and to pay, purchase, contest or compromise any
         encumbrance, charge or lien which in the opinion of Bank
         appears to be prior or superior to its security interest and
         to pay all expenses incurred in connection therewith;

              e.   Without limiting Bank's rights under any security
         interest, Bank is hereby granted a license or other right to
         use, without charge, Borrower's labels, patents, copyrights,
         rights of use of any name, trade secrets, trade names,
         trademarks and advertising matter, or any property of a
         similar nature as it pertains to the Collateral, in
         completing production of, advertising for sale and selling
         any Collateral and Borrower's rights under all licenses and
         all franchise agreement shall inure to Bank's benefit, and
         Bank shall have the right and power to enter into sublicense
         agreements with respect to all such rights with third
         parties on terms acceptable to Bank;

              f.   Ship, reclaim, recover, store, finish, maintain,
         repair, prepare for sale, advertise for sales and sell (in
         the manner provided for herein) the Inventory;

              g.   Sell or dispose the Collateral at either a public
         or private sale, or both, by way of one or more contracts or
         transactions, for cash or on terms, in such manner and at
         such places (including Borrower's premises) as is
         commercially reasonable in the opinion of Bank.  It is not
         necessary that the Collateral be present at any such sale;

              h.   Bank shall give notice of the disposition of the
         Collateral as follows:
                                       12.

<PAGE>
                   (1)  Bank shall give the Borrower and each holder
              of a security interest in the Collateral who has filed
              with Bank a written request for notice, a notice in
              writing of the time and place of public sale, or, if
              the sale is a private sale or some disposition other
              than a public sale is to be made of the Collateral, the
              time on or after which the private sale or other
              disposition is to be made;

                   (2)  The notice shall be personally delivered or
              mailed, postage prepaid, to Borrower's address
              appearing in this Agreement, at least five (5) calendar
              days before the date fixed for the sale, or at least
              five (5) calendar days before the date on or after
              which the private sale or other disposition is to be
              made, unless the Collateral is perishable or threatens
              to decline speedily in value.  Notice to persons other
              than Borrower claiming an interest in the Collateral
              shall be sent to such addresses as they have furnished
              to Bank;

                   (3)  If the sale is to be a public sale, Bank
              shall also give notice of the time and place by
              publishing a notice one time at least five (5) calendar
              days before the date of the sale in a newspaper of
              general circulation in the county in which the sale is
              to be held; and

                   (4)  Bank may credit bid and purchase at any
              public sale.

              i.   Borrower shall pay all Bank Expenses incurred in
         connection with Bank's enforcement and exercise of any of
         its rights and remedies as herein provided, whether or not
         suit is commenced by Bank;

              j.   Any deficiency which exists after disposition of
         the Collateral as provided above will be paid immediately by
         Borrower.  Any excess will be returned, without interest and
         subject to the rights of third parties, to Borrower by Bank,
         or, in Bank's discretion, to any party who Bank believes, in
         good faith, is entitled to the excess; and

              k.   Without constituting a retention of Collateral in
         satisfaction of an obligation within the meaning of 9505 of
         the Uniform Commercial Code or an action under California
         Code of Civil Procedure 726, apply any and all amounts
         maintained by Borrower as deposit accounts (as that term is
         defined under 9105 of the Uniform Commercial Code) or other
         accounts that Borrower maintains with Bank against the
         Obligations.

           8.2     Bank's rights and remedies under this Agreement
    and all other agreements shall be cumulative.  Bank shall have
    all other rights and remedies not inconsistent herewith as
    provided by law or in equity.  No exercise by Bank of one right
    or remedy shall be deemed an election, and no waiver by Bank of
    any default on Borrower's part shall be deemed a continuing
    waiver.  No delay by Bank shall constitute a waiver, election or
    acquiescence by Bank.

    9.   TAXES AND EXPENSES REGARDING BORROWER'S PROPERTY.

              If Borrower fails to pay promptly when due to another
    person or entity, monies which Borrower is required to pay by
    reason of any provision in this Agreement, Bank may, but need
    not, pay the same and charge Borrower's account therefor, and
    Borrower shall promptly reimburse Bank.  All such sums shall
    become additional indebtedness owing to Bank, shall bear interest
    at the rate hereinabove provided, and shall be secured by all
    Collateral.  Any payments made by Bank shall not constitute
    (i) an agreement by it to make similar payments in the future; or
    (ii) a waiver by Bank of any default under this Agreement.  Bank
    need not inquire as to, or contest the validity of, any such
    expense, tax, security interest, encumbrance or lien and the
    receipt of the usual official notice of the payment thereof shall
    be conclusive evidence that the same was validly due and owing.
    Such payments shall constitute Bank Expenses and additional
    advances to Borrower.

    10.  WAIVERS.

           10.1    Borrower agrees that checks and other instruments
    received by Bank in payment or on account of Borrower's
    Obligations constitute only conditional payment until such items
    are actually paid to Bank and Borrower waives the right to direct
    the application of any and all payments at any time or times
    hereafter received by Bank on account of Borrower's Obligations
    and Borrower agrees that Bank shall have the continuing exclusive
    right to apply and reapply such payments in any manner as Bank
    may deem advisable, notwithstanding any entry by Bank upon its
    books.

           10.2    Borrower waives demand, protest, notice of
    protest, notice of default or dishonor, notice of payment and
    nonpayment, notice of any default, nonpayment at maturity,
    release, compromise, settlement, extension or renewal of any or
    all commercial paper, accounts, documents, instruments chattel
    paper, and guarantees at any time held by Bank on which Borrower
    may in any way be liable.

           10.3    Bank shall not in any way or manner be liable or
    responsible for (a) the safekeeping of the Inventory; (b) any
    loss or damage thereto occurring or arising in any manner or
    fashion from any cause; (c) any diminution in the value thereof;
    or (d) any act or default of any carrier, warehouseman, bailee,
    forwarding agency or other person whomsoever.  All risk of loss,
    damage or destruction of Inventory shall be borne by Borrower.

           10.4    Borrower waives the right and the right to assert
    a confidential relationship, if any, it may have with any
    accountant, accounting firm and/or service bureau or consultant
    in connection with any information requested by Bank pursuant to
    or in accordance with this Agreement, and agrees that a Bank may
    contact directly any such accountants, accounting firm and/or
    service bureau or consultant in order to obtain such information.

           10.5    BORROWER AND BANK EACH WAIVE ANY RIGHT TO TRIAL BY
    JURY IN ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR
    ANY TRANSACTION HEREUNDER, OR CONTEMPLATED HEREUNDER, OR ANY
    OTHER CLAIM (INCLUDING TORT OR BREACH OF DUTY CLAIMS) OR DISPUTE
    HOWSOEVER ARISING BETWEEN BANK AND BORROWER.

                                    13.
<PAGE>

           10.6    In the event that Bank elects to waive any rights
    or remedies hereunder, or compliance with any of the terms
    hereof, or delays or fails to pursue or enforce any terms, such
    waiver, delay or failure to pursue or enforce shall only be
    effective with respect to that single act and shall not be
    construed to affect any subsequent transactions or Bank's rights
    to later pursue such rights and remedies.

    11.  ONE CONTINUING LOAN TRANSACTION.

              All loans and advances heretofore, now or at any time
    or times hereafter made by Bank to Borrower under this Agreement
    or any other agreement between Bank and Borrower, shall
    constitute one loan secured by Bank's security interests in the
    Collateral and by all other security interests, liens,
    encumbrances heretofore, now or from time to time hereafter
    granted by Borrower to Bank.

              Notwithstanding the above, (i) to the extent that any
    portion of the Obligations are a consumer loan, that portion
    shall not be secured by any deed of trust or mortgage on or other
    security interest in the Borrower's principal dwelling which is
    not a purchase money security interest as to that portion, unless
    expressly provided to the contrary in another place, or (ii) if
    the Borrower (or any of them) has (have) given or give(s) Bank a
    deed of trust or mortgage covering real property, that deed of
    trust or mortgage shall not secure the loan and any other
    Obligation of the Borrower (or any of them), unless expressly
    provided to the contrary in another place.

    12.  NOTICES.

              Unless otherwise provided in this Agreement, all
    notices or demands by either party on the other relating to this
    Agreement shall be in writing and sent by regular United States
    mail, postage prepaid, properly addressed to Borrower or to Bank
    at the addresses stated in this Agreement, or to such other
    addresses as Borrower or Bank may from time to time specify to
    the other in writing.  Requests to Borrower by Bank hereunder may
    be made orally.

    13.  AUTHORIZATION TO DISBURSE.

              Bank is hereby authorized to make loans and advances
    hereunder upon telephonic or other instructions received from
    anyone purporting to be an officer employee, or representative of
    Borrower, or at the discretion of Bank if said loans and advances
    are necessary to meet any Obligations of Borrower to Bank.  Bank
    shall have no duty to make inquiry or verify the authority of any
    such party, and Borrower shall hold Bank harmless from any
    damage, claims or liability by reason of Bank's honor of, or
    failure to honor, any such instructions.

    14.  DESTRUCTION OF BORROWER'S DOCUMENTS.

              Any documents, schedules, invoices or other papers
    delivered to Bank, may be destroyed or otherwise disposed of by
    Bank six (6) months after they are delivered to or received by
    Bank, unless Borrower requests, in writing, the return of the
    said documents, schedules, invoices or other papers and makes
    arrangements, at Borrower's expense, for their return.

    15.  CHOICE OF LAW.

              The validity of this Agreement, its construction,
    interpretation and enforcement, and the rights of the parties
    hereunder and concerning the Collateral, shall be determined
    according to the laws of the State of California.  The parties
    agree that all actions or proceedings arising in connection with
    this Agreement shall be tried and litigated only in the state and
    federal courts in the Northern District of California or County
    of Santa Clara.

    16.  GENERAL PROVISIONS.

           16.1    This Agreement shall be binding and deemed
    effective when executed by the Borrower and accepted and executed
    by Bank at its Headquarter Office.

           16.2    This Agreement shall bind and inure to the benefit
    of the respective successors and assigns of each of the parties,
    provided, however, that Borrower may not assign this Agreement or
    any rights hereunder without Bank's prior written consent and any
    prohibited assignment shall be absolutely void.  No consent to an
    assignment by Bank shall release Borrower or any guarantor from
    their Obligations to Bank.  Bank may assign this Agreement and
    its rights and duties hereunder.  Bank reserves the right to
    sell, assign, transfer, negotiate or grant participations in all
    or any part of, or any interest in Bank's rights and benefits
    hereunder.  In connection therewith, Bank may disclose all
    documents and information which Bank now or hereafter may have
    relating to Borrower or Borrower's business.

           16.3    Paragraph headings and paragraph numbers have been
    set forth herein for convenience only; unless the contrary is
    compelled by the context, everything contained in each paragraph
    applies equally to this entire Agreement.

           16.4    Neither this Agreement nor any uncertainty or
    ambiguity herein shall be construed or resolved against Bank or
    Borrower, whether under any rule of construction or otherwise; on
    the contrary, this Agreement has been reviewed by all parties and
    shall be construed and interpreted according to the ordinary
    meaning of the words used so as to fairly accomplish the purposes
    and intentions of all parties hereto.  When permitted by the
    context, the singular includes the plural and vice versa.

                                    14.
<PAGE>

           16.5    Each provision of this Agreement shall be
    severable from every other provision of this Agreement for the
    purpose of determining the legal enforceability of any specific
    provision.

           16.6    This Agreement cannot be changed or terminated
    orally.  Except as to currently existing Obligations owing by
    Borrower to Bank, all prior agreements, understandings,
    representations, warranties, and negotiations, if any, with
    respect to the subject matter hereof, are merged into this
    Agreement.

           16.7    The parties intend and agree that their respective
    rights, duties, powers, liabilities, obligations and discretions
    shall be performed, carried out, discharged and exercised
    reasonably and in good faith.

              IN WITNESS WHEREOF, the parties hereto have caused this
    Revolving Credit Loan & Security Agreement (Accounts and
    Inventory) to be executed as of the date first hereinabove
    written.

    ATTEST:                       BORROWER:

    ________________________      By: /s/ David Fractor
                                  _______________________________
    Title:                        Signature of

                                  Title:   CFO
    Accepted and effective as           -------------------------
    of March 01, 2000
    at Bank's Headquarter Office

                                  By: /s/ William Nicely
                                  ________________________________
                                       Signature of

                                  Title: CEO
                                        __________________________

                                  By: /s/ Alan C. Darlington
    (Bank)  Comerica Bank -       ________________________________
    California                         Signature Of

                                  Title: Executive Chairman
    By: /s/  Jason Brown          ________________________________
    --------------------------
    Title: Vice President         By: /s/ JoAnn R. Stover
                                  --------------------------------
                                        Signature of

                                  Title:  Secretary
                                  --------------------------------
                                 15.
<PAGE>

       ADDENDUM TO REVOLVING CREDIT LOAN & SECURITY AGREEMENT

              This Addendum is made, and by this reference
    incorporated into, that certain Revolving Credit Loan & Security
    Agreement (Accounts & Inventory) dated as of March 1, 2000 by and
    between HemaCare Corporation, as "Borrower" and Comerica Bank-
    California as "Bank", (the "Agreement").

    1.   Section 1.12 - "Eligible Accounts", is hereby amended by
         deleting the first line thereof its entirety, and replacing
         it with the following:

              "For purposes of establishing the Borrowing Base
    hereunder, "Eligible Accounts" as used in this Agreement means
    and includes those accounts of Borrower and Coral Blood Services,
    Inc., (a wholly owned subsidiary of Borrower), which accounts are
    due. . ."

    2.   Section 2.1 of the Agreement is hereby amended by adding the
         following sentence at the end thereof:

              . . . . "Notwithstanding the foregoing, Bank, in its
    sole discretion, may permit an advance which exceeds the
    Borrowing Base; provided the Daily Balance before and after said
    advance is not in excess of an aggregate amount of up to One
    Million Dollars ($1,000,000), (the "Non-Formula Portion.").

    3.   Section 6.  of the Agreement is hereby amended as follows:

              a.   Section 6.1    By adding the following at the
         second sentence thereof:

              ". . . . except if and when Bank shall have advanced
    hereunder in accordance with the Non-Formula Portion".

              b.   Section 6.16   Section 6.16 c is hereby amended by
         deleting the first sentence thereof in its entirety, and
         replacing it with the following:

                   "c.  In addition to the financial statements
    requested above, the Borrower agrees to provide Bank with the
    following schedules, on a consolidated basis, within ten (10)
    days of each of Borrower's fiscal operating quarters, provided
    however, that such schedules shall not be required if and when
    Bank shall have advanced hereunder in accordance with the "Non-
    Formula Portion".

              c.   Section 6.22   Section 6.22 is hereby amended by
         adding the following sentence at the end thereof:

                   . . . . "In addition, so long as the credit
    provided under Section 2.1 is available, and until full and final
    payment of all sums outstanding under this Agreement and any
    instrument or agreement required under this Agreement, Borrower
    shall maintain in such Bank accounts an aggregate average ledger
    balance measured on a calendar month basis, in an amount of not
    less than Five Hundred Thousand Dollars ($500,000)."

                                               JS     DF
                                               ____________
                                                 Initials
<PAGE>SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                     BETWEEN

                    TOTAL RESEARCH CORPORATION, AS BORROWER,

                                       AND

                                   SUMMIT BANK

                              Dated: March 21, 2000

<PAGE>
                                      INDEX
                                      -----
                                                                            Page
                                                                            ----
ARTICLE I
         DEFINITIONS AND ACCOUNTING TERMS......................................1
         SECTION 1.01.  Certain Defined Terms..................................1
         SECTION 1.02.  Accounting Terms......................................10

ARTICLE II
         RESTRUCTURING OF OBLIGATIONS TO THE BANK
         LOANS, GUARANTEES, COLLATERAL........................................10
         SECTION 2.01.  Facility A Loan.......................................10
         SECTION 2.02.  Facility B Loan.......................................13
         SECTION 2.03.  Letters of Credit.....................................15
         SECTION 2.04.  Commitment Fee........................................16
         SECTION 2.05.  Letter-of-Credit Fees.................................17
         SECTION 2.06.  Collateral............................................17
         SECTION 2.07.  Payments;.............................................17
         SECTION 2.08.  Prepayments; Termination Fee..........................18
         SECTION 2.09.  Computations..........................................19
         SECTION 2.10.  Late Charge...........................................19

ARTICLE III
         CONDITIONS OF BORROWING..............................................22
         SECTION 3.01.  Closing Conditions....................................22
         SECTION 3.02.  Subsequent Advances...................................25

ARTICLE IV
         REPRESENTATIONS AND WARRANTIES.......................................26
         SECTION 4.01.  Representations and Warranties by
                        the Borrower..........................................26

ARTICLE V
         COVENANTS OF THE BORROWER............................................36
         SECTION 5.01.  Affirmative Covenants of the
                        Borrower Other Than Reporting
                        Requirements..........................................36
         SECTION 5.02.  Negative Covenants of the Borrower....................39
         SECTION 5.03.  Reporting Requirements................................44

ARTICLE VI
         EVENTS OF DEFAULT....................................................47
         SECTION 6.01.  Events of Default.....................................47

<PAGE>

ARTICLE VII
ADDITIONAL PROVISIONS.........................................................51
         SECTION 7.01.  Certain Environmental Matters.........................51
         SECTION 7.02.  Collateral Assignment of Accounts.....................53
         SECTION 7.03.  Stamp Taxes...........................................53
         SECTION 7.04.  Disclosure of Financial Information...................54
         SECTION 7.05.  Letter of Credit and Obligations
                        Absolute and Unconditional............................54

ARTICLE VIII
         MISCELLANEOUS........................................................56
         SECTION 8.01.  No Waiver; Cumulative Remedies........................56
         SECTION 8.02.  Amendments, Etc.......................................57
         SECTION 8.03.  Addresses for Notices, Etc............................57
         SECTION 8.04.  Costs and Expenses; Indemnity.........................59
         SECTION 8.05.  Execution in Counterparts.............................60
         SECTION 8.06.  Governing Law.........................................60
         SECTION 8.07.  Severability of Provisions; Headings..................60
         SECTION 8.08.  Set-Off...............................................61
         SECTION 8.09.  Integration; Entire Agreement.........................61
         SECTION 8.10.  Survival of Agreements................................62
         SECTION 8.11.  Waiver of Trial By Jury...............................62

Schedule A --  Form of Request for Advance

Schedule B --  Supplementary  Information  with  respect  to Representations and
               Warranties

Exhibit A  --  List of Documents Constituting the Prior Agreements

Exhibit B --   Form of Facility "A" Note

<PAGE>

                  SECOND AMENDED AND RESTATED  CREDIT  AGREEMENT dated March 21,
2000  between  Total  Research   Corporation,   a  Delaware   corporation   (the
"Borrower"), and Summit Bank, a New Jersey bank (the "Bank").

                              W I T N E S S E T H:
                              -------------------

                  The  Borrower  and the Bank have  heretofore  entered into the
credit agreements and amendments  thereto  identified and described on Exhibit A
annexed  hereto (as so  amended,  the "Prior  Agreements"),  and wish to further
amend the terms of the Prior Agreements and restate them in a single  agreement.
Without  limiting  the  generality  of the  foregoing,  the Facility A Loans and
Facility B Loans  described in this  Agreement  replace and supersede all credit
facilities   heretofore  in  effect  between  the  Borrower  and  the  Bank.  In
consideration  of the  foregoing,  and for  other  valuable  consideration  (the
receipt  and  sufficiency  of which are hereby  acknowledged),  the Bank and the
Borrower hereby agree as follows:

                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

         SECTION 1.01.  Certain  Defined Terms. As used in the Loan Documents or
in any other documents made or delivered  pursuant  thereto,  unless the context
shall otherwise  require,  the following terms shall have the following meanings
(such meanings to be equally applicable to both the singular and plural forms of
the terms defined):

                           "Acquisition  Sub. 1"  shall  mean  a  company  newly
                  formed and  organized  under  the laws  of England as a

<PAGE>

                  wholly owned  subsidiary  of  the  Borrower  for  the  purpose
                  of facilitating the Romtec Acquisition.

                           "Acquisition  Sub. 2"  shall  mean  a  company  newly
                  formed  and  organized  under  the laws of England as a wholly
                  owned  subsidiary  of  Acquisition  Sub. 1  for the purpose of
                  facilitating the Romtec Acquisition.

                           "Adjusted  LIBOR  Rate"  shall  mean a rate per annum
                  (rounded upwards, if necessary,  to the next 1/16 of 1%) equal
                  to the product  arrived at by multiplying the Fixed LIBOR Rate
                  with respect to the applicable  Interest  Period by a fraction
                  (expressed as a decimal),  the numerator of which shall be the
                  number one and the  denominator  of which  shall be the number
                  one minus the aggregate  reserve  percentages  (expressed as a
                  decimal)  from  time  to  time  established  by the  Board  of
                  Governors of the Federal  Reserve  System of the United States
                  and  any  other  banking  authority  to  which  Bank is now or
                  hereafter subject,  including,  but not limited to any reserve
                  on Eurocurrency  Liabilities as defined in Regulation D of the
                  Board of Governors of the Federal Reserve System of the United
                  States at the ratios  provided in such Regulation from time to
                  time, it being agreed that the amount of the principal balance
                  of any Loans bearing  interest at a LIBOR Rate shall be deemed
                  to  constitute  Eurocurrency  Liabilities,  as defined by such
                  Regulation, and it being further agreed that such Eurocurrency
                  Liabilities  shall be deemed  to be  subject  to such  reserve
                  requirements  without  benefit  of or credit  for  prorations,
                  exceptions  or offsets that may be available to Bank from time
                  to time under such Regulation and irrespective of whether Bank
                  actually maintains all or any portion of such reserve.

                           "Affiliate"  of any  Person  means any  other  Person
                  which, directly or indirectly, controls or is controlled by or
                  is under common control with such Person and, without limiting
                  the generality of the foregoing, includes (i) any Person which
                  beneficially  owns or holds 5% or more of any  class of voting
                  securities of such Person or 5% or more of the equity interest
                  in  such  Person,   (ii)  any  Person  of  which  such  Person
                  beneficially  owns or holds 5% or more of any  class of voting
                  securities or in which such Person  beneficially owns or holds
                  5% or more of the  equity  interest,  and (iii) any  director,
                  officer or employee of such  Person.  For the purposes of this
                  definition,  the term  "control",  as used with respect to any
                  Person, means the possession,  directly or indirectly,  of the
                  power to direct or cause the direction of the  management  and

                                       2
<PAGE>

                  policies of such  Person,  whether  through the  ownership  of
                  voting securities or by contract or otherwise.

                           "Aggregate Credit Limit" means $10,000,000.

                           "Agreement"  means  this  agreement,  as the same may
                  hereafter be amended or restated from time to time.

                           "Bank"  is  defined  in  the  first paragraph of this
                  Agreement.

                           "Bank Affiliate" means any banking  institution owned
                  by the bank holding company that owns the Bank.

                           "Base Rate" means the fluctuating  rate designated by
                  the Bank as its base rate from time to time.  The Base Rate is
                  determined from time to time by the Bank as a means of pricing
                  some  loans  to  its  customers;  it is  neither  tied  to any
                  external  rate of interest or index,  nor does it  necessarily
                  reflect the lowest rate of  interest  actually  charged by the
                  Bank to any  particular  class or category of customers of the
                  Bank.

                           "Borrower" is defined  in the first paragraph of this
                  Agreement.

                           "Borrower Loan Documents"  means this Agreement,  the
                  Notes, the Borrower  Security  Agreement,  the Borrower Pledge
                  Agreement  and  the  UCC-1  financing  statements   heretofore
                  executed and delivered by the Borrower.

                           "Borrower  Pledge Agreement" means the first priority
                  charge  to  be given by the Borrower  over its  shareholdings,
                  present and  future,  in  Total  Research,  Ltd.,  Acquisition
                  Sub.  1,  Acquisition  Sub. 2  and  Romtec  under  the laws of
                  England and Wales.

                           "Borrower  Security  Agreement"  means  the  Security
                  Agreement  from the  Borrower to the Bank dated  December  23,
                  1991 and all other pledge agreements,  collateral assignments,
                  and security instruments of every description heretofore given
                  by the  Borrower  to the Bank to secure  the  liabilities  and
                  obligations of the Borrower to the Bank.

                           "Business Day"  means  any  day  on  which commercial
                  banks  settle  payments  in  U.S. Dollars in New York City and
                  London, England.

                           "Closing"  means the date on which this  Agreement is
                  executed  and  delivered  by the Bank and the Borrower and

                                       3
<PAGE>

                  the Bank makes the initial advance of loan proceeds hereunder.

                           "Code" means  the  Internal  Revenue Code of 1986, as
                  amended.

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

                           "Event of Default" is defined in Section 6.01 of this
                  Agreement.

                           "Facility  A  Loan" is  defined in Section 2.01(A) of
                  this Agreement.

                           "Facility A Note" is  defined  in  Section 2.01(A) of
                  this Agreement.

                           "Facility B Advance" is defined in Section 2.02(A) of
                  this Agreement.

                           "Facility B  Commitment Amount" is defined in Section
                  2.02(A) of this Agreement.

                           "Facility B Loan" is  defined  in  Section 2.02(A) of
                  this Agreement.

                           "Facility B  Maturity  Date"  is  defined  in Section
                  2.02(A) of this Agreement.

                           "Facility B Note" is  defined  in  Section 2.02(B) of
                  this Agreement.

                           "Fixed  LIBOR  Rate"  shall  mean  a rate  per  annum
                  (rounded to the nearest  1/16 of 1%, or if there is no nearest
                  of  1/100,000  of 1%, to the next highest 1/16 of 1%) equal to
                  the rate quoted at  approximately  9:00 a.m. New York time, by
                  New York dealers of London interbank  deposits selected by the
                  Bank two Business Days prior to the first day of such Interest
                  Period for the purchase at face value of U.S.  dollar deposits
                  in immediately  available  funds for a period and in an amount
                  comparable to the applicable Interest Period and the Principal
                  Balance  outstanding during such Interest Period, with respect
                  to which Borrower has exercised the LIBOR Rate Option.

                           "Floating  Rate"  means the  floating  rate per annum
                  obtained by applying the Floating Rate Margin to the Base Rate
                  in effect from time to time.

                                       4
<PAGE>

                           "Floating  Rate  Margin"  means an  incremental  rate
                  added to, or  subtracted  from,  as the case may be,  the Base
                  Rate,  which  initially shall be a positive one quarter of one
                  percent (1/4%), and shall be adjusted quarterly based upon the
                  Borrower's consolidated ratio of Total Liabilities to Tangible
                  Net Worth at the end of each fiscal quarter in accordance with
                  the following schedule:

                  Ratio of Total Liabilities
                    to Tangible Net Worth                     Margin
                    ---------------------                     ------

                  3.00 or greater                              - 0-

                  Between 1.50 to 1 and 2.99 to 1             (-1/4%)

                  Below 1.50 to 1                             (-1/2%)

                           "GAAP" means generally accepted accounting principles
                  as  from  time  to  time in  effect,  including  the  official
                  interpretations  thereof by the Financial Accounting Standards
                  Board, consistently applied.

                           "Guarantor"  or "Guarantors" means,  individually  or
                  collectively,  as  the  case  may be,  Total  Research,  Ltd.,
                  Acquisition Sub. 1, Acquisition Sub. 2 and Romtec.

                           "Guarantor Loan Documents" means the Guaranty and the
                  Guarantor Pledge Agreements.

                           "Guarantor  Pledge   Agreements"  means   the   first
                  priority   charge  to be given by: (i) Acquistion  Sub. 1 over
                  its  shareholdings,  present  and  future, in Acquisition Sub.
                  2;  and  (ii)  Acquisition  Sub.  2 over   its  shareholdings,
                  present  and  future,  in Romtec and Total Research,  Ltd. (to
                  the  extent  the  shareholdings  in the latter are transferred
                  to Acquisition Sub. 2 by the Borrower).

                           "Guaranty" shall mean,  collectively, the guaranty or
                  guarantees  to  be given by  Acquisition  Sub. 1,  Acquisition
                  Sub. 2,  Romtec  and Total Research, Ltd. guaranteeing payment
                  of the Obligations.

                           "Indebtedness"   means,  for  any  Person,   (i)  all
                  indebtedness or other  obligations of such Person for borrowed
                  money  or for the  deferred  purchase  price  of  property  or
                  services,  (ii) all  indebtedness or other  obligations of any
                  other Person for borrowed  money or for the deferred  purchase
                  price of  property or services  the payment or  collection  of
                  which  such  Person  has

                                       5
<PAGE>

                  guaranteed  (except  by  reason  of endorsement for collection
                  in the ordinary course of business)  or  in  respect  of which
                  such Person is liable,  contingently or  otherwise, including,
                  without limitation, liability by way of agreement to purchase,
                  to   provide   funds  for  payment,  to  supply  funds  to  or
                  otherwise   to  invest in such other  Person,  or otherwise to
                  assure a creditor  against  loss,  (iii)  all  indebtedness or
                  other  obligations  of  any other Person for borrowed money or
                  for  the  deferred   purchase  price of  property  or services
                  secured  by  (or for which the holder of such indebtedness has
                  an existing  right,  contingent  or  otherwise,  to be secured
                  by)  any   mortgage,  deed of trust,  pledge,  lien,  security
                  interest or other charge  or  encumbrance  upon or in property
                  (including,   without  limitation,    accounts   and  contract
                  rights)  owned  by such Person, whether or not such Person has
                  assumed   or   become    liable   for  the   payment  of  such
                  indebtedness  or   obligations,   and (iv)  capitalized  lease
                  obligations of such Person.

                           "Interest  Period" means the period commencing on the
                  date so specified in Borrower's notice to Bank of any election
                  to  exercise  the  LIBOR  Rate  Option  and  ending  on a date
                  specified  in such  notice,  which  ending  date (a)  shall be
                  either  one  month,  two  months,  or three  months  after the
                  commencement  of the  Interest  Period,  and (b)  shall not be
                  beyond the Maturity  Date. No Interest  Period shall  commence
                  other than on a Business Day. If any Interest Period shall end
                  on a day which is not a Business  Day,  such  Interest  Period
                  shall be extended to the next succeeding  Business Day, unless
                  such  next  succeeding  Business  Day  would  fall in the next
                  calendar month, in which event, such Interest Period shall end
                  on the next preceding Business Day.

                           "ISRA" means  the  Industrial  Site  Recovery Act, as
                  amended  (N.J.S.A.  13:1K-6  et  seq.)  and   the  regulations
                  promulgated pursuant thereto.

                           "Letter of Credit" is defined in Section  2.04(A)  of
                  this Agreement.

                           "LIBOR Rate" shall mean a rate per annum  obtained by
                  adding  the  LIBOR  Margin  to the  Adjusted  LIBOR  Rate with
                  respect to the applicable Interest Period.

                           "LIBOR  Margin" an  increment  added to the  Adjusted
                  LIBOR  Rate,  which  initially  shall  be 2.75%  and  shall be
                  adjusted  quarterly  vary based upon the  Borrower's  ratio of
                  Total Liabilities to Tangible Net Worth in accordance with the
                  following schedule:

                                       6
<PAGE>

                  Ratio of Total Liabilities
                    to Tangible Net Worth                     Margin
                    ---------------------                     ------

                  3 to 1 or greater                            2.50%
                  Between 1.50 to 1 and 2.99 to 1              2.25%
                  Below   1.50 to 1                            2.00%

                           "LIBOR Rate  Option"  means an option of the Borrower
                  from time to time,  upon the terms and conditions set forth in
                  Facility A Note and Facility B Note, respectively,  to convert
                  the interest rate on any portion of the principal balance from
                  time to time  bearing  interest at the  Floating  Rate and any
                  Facility B Advance  about to be made from the Floating Rate to
                  a LIBOR Rate.

                           "Loan Documents"  means,  collectively,  the Borrower
                  Loan Documents and the Guarantor Loan Documents.

                           "Loans" means, collectively, all Facility A Loans and
                  the  Facility  B Loan  extended  by the  Bank to the  Borrower
                  pursuant  to  this  Agreement,  as the  same  may be  amended,
                  modified or replaced from time to time.

                           "Notes"  means each Facility A Note entered into from
                  time to time evidencing a Facility A Loan  including,  without
                  limitation,  the  Facility A Note dated the date hereof in the
                  principal amount of $3,500,000, and the Facility B Note.

                           "Obligations" means all indebtedness, obligations and
                  liabilities  of the  Borrower  to the Bank of  every  kind and
                  description,  direct or indirect,  secured or unsecured, joint
                  or  several,  absolute  or  contingent,  due or to become due,
                  including any overdrafts,  whether for payment or performance,
                  now  existing  or   hereafter   arising,   whether   presently
                  contemplated  or not,  regardless of how the same arise, or by
                  what  instrument,  agreement  or  book  account  they  may  be
                  evidenced,  or whether evidenced by any instrument,  agreement
                  or book  account,  including,  but  not  limited  to al  loans
                  (including  any loan by  modification,  renewal or extension),
                  all  indebtedness  including  any arising from any  derivative
                  transactions,  all undertakings to take or refrain from taking
                  any action, all indebtedness, liabilities or obligations owing
                  from  Borrower  to  others  which  Bank may have  obtained  by
                  purchase, negotiation,  discount, assignment or otherwise, and
                  all interest,  taxes, fees,  charges,  expenses and attorney's
                  fees

                                       7
<PAGE>

                  (whether  or   not   such  attorney  is a  regularly  salaried
                  employee  of  the  Bank,   any   parent   corporation  or  any
                  subsidiary  or  affiliate  thereof,   whether  now existing or
                  hereafter   created)   chargeable  to  Borrower or incurred by
                  Bank  under   this    Agreement  or  any  other   document  or
                  instrument delivered in connection herewith.

                           "Person"    means   an    individual,    corporation,
                  partnership,  limited  partnership,  joint venture,  trust, or
                  unincorporated organization,  or a government or any agency or
                  political subdivision thereof.

                           "Plan"  means any  pension  plan  which is covered by
                  Title IV of ERISA and in respect of which the  Borrower or any
                  "commonly  controlled  entity"  (within the meaning of Section
                  414(b)  or (c) of the Code) is an  "employer"  as  defined  in
                  Section 3(5) of ERISA.

                           "Romtec" means Romtec PLC.

                           "Romtec  Acquisition"  is  defined  in  Section  3.01
                  hereof.

                           "Romtec Acquisition  Closing" means the date on which
                  the Romtec  Acquisition closes and all conditions set forth in
                  Section 3.01(B) are satisfied.

                           "Romtec Purchase Agreement" means  collectively,  the
                  agreements  and documents  which evidence and govern the terms
                  and conditions of the Romtec Acquisition.

                           "Subordinated  Debt"  means any  Indebtedness  of the
                  Borrower for money  borrowed  which is subordinate in right of
                  payment as to principal  and interest to the prior  payment in
                  full  of  the  Bank,  pursuant  to a  subordination  agreement
                  satisfactory to the Bank in form and substance executed by the
                  creditor to whom such Indebtedness is owing.

                           "Subsidiaries" means the subsidiaries of the Borrower
                  identified on Schedule B, Item 4.01(b).

                           "Tangible  Net  Worth"  means,  with  respect  to the
                  Borrower and all  Subsidiaries  on a consolidated  basis,  the
                  excess of total  assets  over  Total  Liabilities,  excluding,
                  however, from the determination of total assets (i) all assets
                  which would be classified as intangible assets under generally
                  accepted accounting principles, including, without limitation,
                  goodwill  (whether  representing  the excess of cost over book
                  value of assets acquired or otherwise),  patents,  trademarks,
                  trade names,  copyrights,  franchises,  and  deferred

                                       8
<PAGE>

                  charges   (including,   without  limitation,  unamortized debt
                  discount  and  expense,  organization  cost,  and research and
                  development  costs);  (ii) any write-up  in  the book value of
                  any  asset since the end of the fiscal  year of  the  Borrower
                  immediately  preceding  the date of this Agreement;  and (iii)
                  cash  set  apart and held in a sinking or other analogous fund
                  established   for   the   purpose  of   redemption   or  other
                  retirement of capital stock.

                           "Total   Liabilities"  means,  with  respect  to  the
                  Borrower and the  Subsidiaries  on a consolidated  basis,  all
                  items of Indebtedness, and all other items which in accordance
                  with GAAP would  properly be included on the liability side of
                  its balance sheet (other than capital stock,  capital surplus,
                  and retained earnings),  as of the date on which the amount of
                  Total Liabilities is to be determined,  computed in accordance
                  with GAAP.

         SECTION 1.02.  Accounting Terms. All accounting terms, unless otherwise
specifically defined herein, shall be construed in accordance with GAAP, and all
financial  data  submitted  pursuant  to this  Agreement  shall be  prepared  in
accordance with GAAP.

                                   ARTICLE II
                    RESTRUCTURING OF OBLIGATIONS TO THE BANK
                          LOANS, GUARANTEES, COLLATERAL

         SECTION 2.01.  Facility A Loan. (A) Subject to the terms and conditions
of this  Agreement,  the Bank  agrees  to make a series  of term  loans  (each a
"Facility A Loan") to the  Borrower  on the dates and in the  maximum  principal
amounts set forth below:

         Date of Romtec Acquisition Closing          $3,500,000

         First Anniversary Thereof                   $2,000,000

         60th day after the Second
          Anniversary Thereof (but not
          beyond June 30, 2002)                      $1,000,000

                                       9
<PAGE>

Notwithstanding  the  foregoing,  the  principal  amount of each Facility A Loan
shall not exceed the amounts of the installments due to the former  shareholders
of Romtec under the Romtec  Purchase  Agreement at the time each Facility A Loan
is made.  Further,  the principal amount of the Facility A Loans,  together with
the  principal  amount  outstanding  under the  Facility B Loan  (including  the
amounts  of all  outstanding  Letters of  Credit)  may not exceed the  Aggregate
Credit  Limit.  To the extent that the  principal  amount of any Facility A Loan
requested  to be made  hereunder  would cause the  Aggregate  Credit Limit to be
exceeded,  the proceeds of such Facility A Loan shall be used first to refinance
and recast a portion of the outstanding  principal amount of the Facility B Loan
sufficient to keep the total principal  amount of the Borrower's  liabilities to
the Bank  (including  the  amounts of all  outstanding  Letters of Credit) at or
below the Aggregate  Credit Limit.  The Borrower shall give at least twenty (20)
days  advance  written  notice  to the Bank of its  intention  to  enter  into a
Facility A Loan.  Each  Facility A Loan shall be a single  loan,  evidenced by a
promissory  note of the  Borrower in  appropriate  principal  amount in the form
attached  hereto  as  Exhibit  B (each of which,  as the same may  hereafter  be
amended,  replaced or restated  from time to time,  will be called a "Facility A
Note").  The  purpose  of  the  Facility  A  Loans  is  to  finance  the  Romtec
Acquisition.
                           (B) Each  Facility A Note shall mature and be payable
in full on the date that, at Borrower's election, is three (3), four (4) or five
(5) years  after the date such  Facility  A

                                       10
<PAGE>

Loan is advanced (such date being referred to as a "Facility A Maturity  Date").
It shall be payable in consecutive  monthly  installments of principal,  each in
the amount which is the quotient  obtained by dividing the  principal  amount of
such  Facility  A Note by the  number of months in the term of such  Facility  A
Note,  together  with all accrued  and unpaid  interest,  until the  appropriate
Facility A Maturity Date, whereupon the remaining  outstanding principal balance
and all accrued and unpaid interest thereon shall be due and payable in full.
                           (C) Each  Facility A Note shall bear  interest at the
Floating Rate; subject,  however, to Borrower's right to exercise the LIBOR Rate
Option from time to time.
                           (D) The Bank  shall  have no  obligation  to make any
further Facility A Advances after the earlier to occur of (x) the 60th day after
second anniversary of the Closing or (y) an Event of Default (or an event which,
with  notice  or the  passage  of time or  both,  would  constitute  an Event of
Default).
                           (E)  Borrower  shall  have  the  right,  but  not the
obligation, subject to the Bank's credit underwriting approvals in each case, at
any time to hedge the floating  interest  expense on any Facility A Note for the
remaining  term thereof by entering into and  maintaining  an interest rate swap
agreement  with the Bank or other  counterparty  affiliated  with the Bank, in a
notional  amount  equal  to  the  then  outstanding  principal  balance  of  the
applicable  Facility A Note and providing for a notional fixed rate

                                       11
<PAGE>

satisfactory to Bank, and containing such other terms and conditions as shall be
reasonably acceptable to Bank. If Borrower elects to enter into an interest rate
swap agreement,  then the Facility A Note shall  thereafter bear interest at the
LIBOR Rate applicable to one month Interest Periods.

         SECTION 2.02.  Facility B Loan. (A) Subject to the terms and conditions
of this Agreement, the Bank agrees to make a loan (the "Facility B Loan") to the
Borrower,  pursuant to which the Bank will, until June 30, 2002 (the "Facility B
Maturity  Date"),  make  advances  (each,  a "Facility B Advance") to or for the
account of the  Borrower  upon the  request of the  Borrower  from time to time.
Proceeds  of the  Facility B Loan shall be used to finance  working  capital and
other general  corporate  purposes.  The aggregate amount of Facility B Advances
that are outstanding at any time, plus the aggregate amount of Letters of Credit
outstanding  at such time,  shall not exceed:  (i) until the Romtec  Acquisition
Closing has occurred,  $6,500,000; or (ii) after the Romtec Acquisition Closing,
the difference from time to time obtained by subtracting the aggregate principal
balance of all Facility A Loans from $10,000,000 (such difference being referred
to as the "Facility B Commitment Amount").  Within such limits, the Borrower may
borrow, prepay without penalty or premium, and reborrow Facility B Advances from
time to time.  Each  Facility  B  Advance  shall be in an  amount  not less than
$50,000. The initial Facility B Advance made concurrently with the Closing shall
be in an amount  necessary to  refinance  and recast the  outstanding

                                       12
<PAGE>

principal  balance under the  Borrower's  revolving line of credit with the Bank
under  the  Prior  Agreements.  Borrower  acknowledges  that  all  prior  credit
facilities shall terminate contemporaneously with the Closing.
                           (B) All  Facility  B Advances shall, collectively, be
considered  a single loan,  and shall be  evidenced by a promissory  note of the
Borrower in the maximum  principal  amount of  $10,000,000 in form and substance
satisfactory to the Bank (which, as the same may hereafter be amended,  replaced
or restated from time to time, will be called the "Facility B Note").
                           (C) The  Facility B Note shall bear  interest  at the
Floating Rate; subject,  however, to Borrower's right to exercise the LIBOR Rate
Option from time to time.
                           (D) All accrued and unpaid interest on the Facility B
Note shall be due and  payable  monthly  until the  Facility  B  Maturity  Date,
whereupon the Facility B Note shall mature and the entire outstanding  principal
balance thereof, plus all accrued and unpaid interest thereon,  shall be due and
payable in full.
                           (E) The Bank  shall  have no  obligation  to make any
further  Facility B Advances  after the  earlier to occur of (i) the  Facility B
Maturity  Date,  or (ii) an Event of Default (or an event which,  with notice or
the passage of time or both, would constitute an Event of Default).
         SECTION  2.03.  Letters  of  Credit.  (A)  Subject  to  the  terms  and
conditions of this Agreement,  the Bank agrees to issue

                                       13
<PAGE>

letters of credit (each,  a "Letter of Credit") from time to time at the request
of and for the  account  of the  Borrower.  The  aggregate  amount of Letters of
Credit outstanding from time to time shall not exceed the lesser of

                           (i) $1,000,000  less  the  aggregate  amount  of  all
                  Letters of Credit outstanding at such time; or

                           (ii) the  excess  of (a) the  Facility  B  Commitment
                  Amount,  over  (b) the sum of (x)  the  outstanding  principal
                  amount  of the  Facility  B Loan at  such  time  plus  (y) the
                  aggregate amount of all Letters of Credit  outstanding at such
                  time.

The expiry dates,  amounts, and other terms of the Letters of Credit shall be as
agreed  upon  between  the  Borrower  and the Bank from time to time;  provided,
however,  that in no event  shall  the Bank be  obligated  to issue a Letter  of
Credit whose expiry date is after the Facility B Maturity  Date.  The Letters of
Credit include the Bank's Standby Letter of Credit no. 20981356 in the amount of
$650,200,  and its  Standby  Letter  of Credit  no.  90921023  in the  amount of
$115,000, which presently are outstanding.
                           (B) Each request by the Borrower  for the issuance of
a Letter of Credit shall automatically  constitute a representation and warranty
by the Borrower that (i) all the  representations  and  warranties  contained in
this  Agreement  are true and complete on and as of the date of such request (as
if the same were made on and as of the date of such  request)  and (ii) no Event
of Default  (and no event  which,  with  notice or the  passage of time or both,
would  constitute an Event of Default)  exists on the date of such request.  The
Borrower shall, if the Bank so

                                       14
<PAGE>

requests, execute the Bank's then-customary form of letter of credit application
and reimbursement agreement in connection with the Letter of Credit requested.
                           (C) The Bank  shall have no  obligation  to issue any
Letter of Credit after the earlier to occur of (i) the Facility B Maturity  Date
or (ii) an Event of Default  (or an event  which,  with notice or the passage of
time or both, would constitute an Event of Default).
                           (D) The  amount  of each  drawing  under a Letter  of
Credit shall be a Facility B Advance,  and the obligation of the Borrower to pay
the Bank therefor (with interest) shall be evidenced by the Note.
         SECTION  2.04.  Commitment  Fee.  The  Borrower  shall  pay the  Bank a
commitment  fee at a rate (computed each day until the Facility B Maturity Date)
equal to one quarter of one  percent  (1/4 of 1%) per annum of the excess of (a)
the  Facility  B  Commitment  Amount,  over  (b) the sum of (x) the  outstanding
principal  balance  of the  Facility  B Loan on such day plus (y) the  aggregate
amount  of all  Letters  of Credit  outstanding  on such  day.  Such  annualized
commitment fee shall be payable in quarterly  installments,  in arrears, on each
January 1st, April 1st, July 1st and October 1st,  commencing April 1, 2000, and
on the Facility B Maturity Date.
         SECTION 2.05.  Letter-of-Credit  Fees. The Borrower shall pay the Bank,
upon the issuance of each Letter of Credit,  a

                                       15
<PAGE>

fee equal to the then  prevailing  fee  changed by the Bank for the  issuance of
standby Letters of Credit.
         SECTION 2.06.  Collateral.  The Obligations,  and all other obligations
and  liabilities  of the  Borrower to the Bank whether now existing or hereafter
arising,  shall be secured by: (i) a first-priority  security  interest in, lien
on, and assignment of all the  properties  and assets of the Borrower,  tangible
and intangible,  real and personal,  wherever  located,  whether now existing or
hereafter  arising,  whether  now  owned  or  hereafter  acquired;  and (ii) the
Guaranty; and (iii) the Guarator Pledge Agreements. The Borrower hereby ratifies
and  confirms its  obligations  under the Borrower  Security  Agreement  and the
continuing effectiveness thereof.
         SECTION 2.07.  Payments;.  All payments and prepayments by the Borrower
of principal  and interest on the Notes shall be made to the Bank at its address
referred to in Section 8.03 hereof. The Borrower hereby  irrevocably  authorizes
the Bank to debit (or cause to be debited) any account of the Borrower  with the
Bank or with any Bank Affiliate for any payment of principal and interest or any
other  amount that shall  become due. If any payment  becomes due on a day other
than a business day of the Bank,  the due date thereof  shall be extended  until
the  next  succeeding  business  day,  and  interest  shall  be  payable  at the
applicable rate during such extension.

                                       16
<PAGE>

         SECTION 2.08. Prepayments;  Termination Fees. (A) Subject to clause (B)
below,  the Borrower  may prepay the Notes at any time,  in whole or (in minimum
amounts of  $10,000.00  each) in part,  without  penalty or  premium;  provided,
however,  that prepayment of any amounts bearing  interest at a LIBOR Based Rate
on any day other  than the last day of an  Interest  Period  shall be subject to
costs and  damages  incurred by the Bank as  provided  in the  applicable  Note.
Further,  to the  extent  Borrower  has  entered  into any  interest  rate  swap
agreement,  prepayment of the offsetting  obligations in an applicable  Note may
result in costs and  penalties  payable by the Borrower  under the interest rate
swap agreement. Each prepayment of a Facility A Note shall be applied on account
of the installments of principal to become due in the inverse order of maturity.
         (B)  Notwithstanding  anything to the contrary in Section  2.08(A),  if
Borrower prepays the principal amounts  outstanding  hereunder from the proceeds
of financing from any external source on or before the first  anniversary of the
date hereof, and in connection  therewith terminates the Facility B Loan and any
further  obligation to make Facility A Loans,  Borrower  shall pay to the Bank a
termination fee in the amount of $50,000.
         SECTION 2.09. Computations.  Interest on each Note shall be computed on
the basis of the actual  number of days  elapsed,  over a year of 360 days.  The
outstanding  amount of each Note as reflected on the Bank's records from time to
time shall

                                       17
<PAGE>

conclusively be considered correct and binding on the Borrower,  absent manifest
error.
         SECTION 2.10. Late Charge.  If any amount required to be paid under any
Note,  this Agreement or any other Borrower Loan Document is not paid within ten
(10) days after the date on which it is due, the  Borrower  shall pay the Bank a
late charge equal to five percent (5%) of such overdue  payment,  but not in any
case less than  $25.00 or more than  $2,500.00.  Late  charges so  assessed  are
immediately due and payable. Payments are deemed made on the banking day payment
is received by the Bank;  payments  received after 3:00 p.m. will be deemed made
the next banking day.
         SECTION 2.11.  Default Rate. To the extent  permitted by law,  whenever
there is any Event of Default under this Agreement,  the rate of interest on the
unpaid principal balance of the Loans shall, at the option of the Bank, be three
percent(3%)  per annum in excess of rate of interest  otherwise  in effect.  The
Borrower acknowledges that: (i) such additional rate is a material inducement to
Bank to make the loan, (ii) the Bank would not have made the loan in the absence
of the agreement of the Borrower to pay such default rate, (iii) such additional
rate  represents  compensation  for the increased risk to the Bank that the loan
will  not be  repaid,  and  (iv)  such  additional  rate  is not a  penalty  and
represents  a  reasonable  estimate  of (a) the cost to Bank in  allocating  its
resources  (both  personnel and  financial) to the ongoing  review,  monitoring,
administration  and collection of the

                                       18
<PAGE>

loan,  and  (b) of  compensation  to Bank  for  losses  that  are  difficult  to
ascertain.
         2.12  Adjustments to Floating Rate Margin and LIBOR Margins.  The LIBOR
Margin and  Floating  Rate  Margin  shall be adjusted  quarterly  based upon the
Borrower's  consolidated  ratio of Total Liabilities to Tangible Net Worth as of
the end of the  most  recent  fiscal  quarter  for  which  Borrower's  quarterly
financial  statements  have been  furnished  to the Bank.  For  example,  if the
Borrower's  financial  statements for the quarter ended March 31 of a given year
are  furnished on May 15, and an adjustment in the Floating Rate Margin or LIBOR
Margins is required,  the  adjustment  shall be effective June 30. The change in
the LIBOR Margin and Floating Rate Margin,  if any, as so determined  shall take
effect on the first day of April,  July,  October  and  January in each year and
such LIBOR Margin shall remain in effect for the ensuing three month period.  If
any Interest  Period is in effect on the date the LIBOR Margin  otherwise  would
change pursuant to the above provisions,  the LIBOR Rate(s) then in effect shall
not  change,  but shall  remain  in effect  for the  unexpired  portion  of such
Interest  Period(s).  If in any case the Borrower does not deliver its financial
statements  to the Bank  before the date the change in LIBOR  Margin or Floating
Rate Margin would otherwise take effect,  then the Bank may elect, at its option
either:  (i) to not make the LIBOR Rate Option  available to the Borrower  until
such  financial  statements  are delivered and the LIBOR Margin is adjusted;  or
(ii) to  retroactively  change the LIBOR Margin and  Floating  Rate Margin

                                       19
<PAGE>

as of such  date(s),  and adjust the interest due hereon as soon as  practicable
following delivery of such financial  statements to the Bank. If the Bank elects
to make the adjustments  described in clause (ii) and additional interest is due
to the Bank by  reason of an  increase  in the LIBOR  Margin  or  Floating  Rate
Margin,  such amount shall be due and payable upon demand. If amounts are due to
the  Borrower  by reason of a  decrease  in the LIBOR  Margin or  Floating  Rate
Margin, such amounts shall be credited against the next monthly interest payment
due from the Borrower.

                                   ARTICLE III
                             CONDITIONS OF BORROWING

         SECTION 3.01. Closing Conditions. (A) Unless the Bank elects in writing
to waive any such closing  condition,  the  obligation  of the Bank to close the
transaction  contemplated  by this  Agreement  shall be subject to the condition
precedent that the Borrower shall (at its sole cost and expense)have provided to
the Bank (or shall have  caused the  Guarantors  to provide to the Bank,  as the
case may be) each of the following,  duly executed (where  appropriate),  all of
which  shall be subject to the  approval  of the Bank and its  counsel in scope,
form and substance:

                           (i)      the Loan Documents;

                           (ii) a favorable  opinion of counsel for the Borrower
                  and Guarantors addressed to the Bank;

                           (iii) a secretary's  certificate of the Borrower,  to
                  which are  attached  certified  copies of (x) the  articles of
                  incorporation  of the  Borrower  and all  amendments

                                       20
<PAGE>

                  thereto,  certified  by the Secretary of State of the State of
                  its  incorporation,  (y)  the  By-Laws of the Borrower and all
                  amendments    thereto,   and   (z)   appropriate   resolutions
                  authorizing the transactions contemplated by this Agreement;

                           (v)  such  certificates  and  assurances  as  may  be
                  required  by  Bank  and  its  counsel   confirming:   (x)  the
                  organization  and legal existence of the  Guarantors,  (y) the
                  authorization  of  the  Guarantors  to  execute,  deliver  and
                  perform their  obligations  under the Guarantor Loan Documents
                  and the due  execution  of the  Guarantor  Loan  Documents  by
                  properly  authorized  agents,  and  (z)  that  the  execution,
                  delivery and  performance by the Guarantors  does not conflict
                  with their  respective  charters  or  governing  documents  or
                  applicable law;

                           (vi)  a  good  standing  certificate  issued  by  the
                  appropriate  official  of the State in which the  Borrower  is
                  incorporated;  and a good standing  certificate  issued by the
                  appropriate  official  of the States in which the  Borrower is
                  qualified as a foreign corporation;

                           (vii)    insurance     certificates    showing    the
                  effectiveness  of  property,  casualty,  liability  and  other
                  insurance  coverage for the Borrower,  which is required to be
                  maintained  by  Section  5.01  hereof  and by Section 6 of the
                  Borrower Security Agreement;

                           (viii)  payment  of  the  fee  and  disbursements  of
                  counsel for the Bank (including counsel in the U.S. and in the
                  United Kingdom); and

                           (ix) such other certificates, documents, opinions and
                  information as the Bank or its counsel may reasonably request.

                           (B) If the Romtec Acquisition  Closing does not occur
prior to or concurrently with the Closing,  then the obligation of Bank to enter
into and make the first Facility A Loan under this Agreement shall be subject to
the condition  precedent  that the Borrower shall (at its sole cost and expense)
have provided to the Bank (or shall have caused the Guarantors to provide to the
Bank,

                                       21
<PAGE>

as the case may be) each of the following,  duly executed  (where  appropriate),
all of which  shall be subject to the  approval  of the Bank and its  counsel in
scope, form and substance:

                           (i) any  and all of the Loan Documents which were not
                  heretofore  signed  and  delivered  by  the  Borrower  and the
                  Guarantor;

                           (ii)   evidence  that  all  charges  and  liens  upon
                  shareholdings  are properly  perfected  (i.e., by delivery and
                  possession  of share  certificates,  filing of  documents  and
                  instruments in public  records) and constitute  first priority
                  liens over the shares covered by the Borrower Pledge Agreement
                  and the Guarantor Pledge Agreements;

                           (iii) all  documents,  agreements  and other writings
                  setting  forth the terms and  conditions  upon which  Borrower
                  (either  directly  or through  Acquisition  Sub. 2) propose to
                  acquire  at  least  90%  of  the  outstanding  capital  shares
                  (including  outstanding  rights and options to acquire capital
                  shares) of Romtec (the  "Romtec  Acquisition"),  and  evidence
                  satisfactory  to the Bank  and its  counsel  that  the  Romtec
                  Acquisition  has been completed and all  conditions  precedent
                  thereto  have been  satisfied  except  for the  payment of the
                  purchase  price due to the selling Romtec  shareholders  or in
                  the alternative, that proceeds of the Facility A Loan shall be
                  held in escrow pending completion of the Romtec Acquisition by
                  an escrow agent  acceptable to the Bank under a written escrow
                  agreement in form and substance acceptable to the Bank;

                            (iv)  evidence  that upon  payment  of the  purchase
                  price to the selling Romtec shareholders, the Bank will have a
                  first  priority  lien  upon  the  Romtec  shares  acquired  by
                  Acquisition Sub 2;

                           (v) evidence  that all necessary  legal  proceedings,
                  approvals and consents required under the laws and regulations
                  of  England  and  Wales  and  any  governmental   agency  with
                  jurisdiction  in connection  with the Romtec  Acquisition  and
                  with the execution,  delivery and performance of the Guarantor
                  Loan Documents by the  Guarantors,  have been obtained and any
                  and all conditions required in connection  therewith have been
                  satisfied;

                                       22
<PAGE>

                           (vi) a Facility A Note,  duly completed and dated the
                  date such Facility A Loan is made,  and any and all other Loan
                  Documents not theretofore executed and delivered; and

                           (vii)   certificates,    documents   and   agreements
                  reasonably  requested to confirm that the conditions set forth
                  in Section 3.02 have been satisfied; and

                           (viii)  payment  of the fees and  expenses  of Bank's
                  counsel  (including  counsel  in the  U.S.  and in the  United
                  Kingdom) in connection with the Facility A Loan.

All proceedings  and matters in connection  with the Closing,  and all documents
incident thereto,  shall (as a condition precedent to the execution and delivery
of this Agreement by the Bank) be subject to the approval as to scope,  form and
substance of the Bank and its counsel.
         SECTION 3.02.  Subsequent Advances.  The obligation of the Bank to make
any Facility A Loan or Facility B Advance or to issue any Letter of Credit after
the date hereof shall be subject to the condition precedent that:

                           (i) all the representations and warranties  contained
                  in this Agreement  shall be true and complete on and as of the
                  date such  Advance is made or such  Letter of Credit is issued
                  (with  the  same  effect  as  if  such   representations   and
                  warranties were made on and as of such date);

                           (ii) no Event of Default  (and no event  which,  with
                  notice or the  passage of time or both,  would  constitute  an
                  Event of Default) shall exist;

                           (iii) the Bank  shall  have  received  a Request  for
                  Advance (in substantially the form attached hereto as Schedule
                  A)  from  the  Borrower  requesting  such  Facility  A Loan or
                  Facility B Advance; and

                                       23
<PAGE>

                           (iv) (as to a Letter of  Credit)  the Bank shall have
                  received a written  request by the Borrower for such Letter of
                  Credit and the fee  required  upon the issuance of such Letter
                  of Credit,  and the  requested  terms and  conditions  of such
                  letter of credit shall have been  determined by the Bank to be
                  satisfactory to it.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

         SECTION 4.01.  Representations and Warranties by the Borrower. In order
to  induce  the Bank to enter  into this  Agreement  and to  extend  the  credit
evidenced by the Notes,  the Borrower  represents and warrants to the Bank, upon
the understanding that insofar as the following  representations  and warranties
apply to Romtec, they are made to Borrower's best knowledge, that:
                           (a) Corporate  Existence  and  Power.   Each  of  the
Borrower, the Guarantors and Romtec is a corporation duly incorporated,  validly
existing  and in  good  standing  under  the  laws  of the  jurisdiction  of its
incorporation,  and is duly  qualified  as a  foreign  corporation  in all other
jurisdictions  in which the conduct of its business or the ownership or lease of
its properties or assets requires such  qualification.  The States of the United
States and foreign  countries  in which the  Borrower is  qualified as a foreign
corporation are set forth on Schedule B to this Agreement. Each of the Borrower,
the  Guarantors  and Romtec has full  corporate  power and  authority to own its
properties and assets and to conduct its business as now conducted. The Borrower

                                       24
<PAGE>

has complied with all filing, permit, license and other requirements of federal,
state and local laws necessary to prevent the Borrower from being precluded,  by
reason of its failure so to comply with any such requirement, from continuing to
do business as now conducted in the  jurisdictions in which it is now conducting
business.
                           (b) Subsidiaries.  Except  as otherwise identified on
Schedule B hereto  (including the state or country of organization and states or
countries in which they are qualified to do  business),  the Borrower (x) has no
subsidiaries  and no  investment  in  any  other  corporation;  and  (y)  has no
investment in any partnership, limited partnership, limited liability company or
joint  venture;  and (z) is not a  member  or  participant  in any  partnership,
limited partnership, limited liability company or joint venture.

                           (c) Loan  Documents.  Each  of  the  Borrower and the
Guarantors has all requisite power and authority to execute and deliver,  and to
perform its obligations  under,  the Loan Documents to which it is a party.  The
execution,  delivery and  performance  by each of the Borrower and Guarantors of
the Loan Documents to which it is a party:  (x) has been duly  authorized by all
necessary  corporate  action;  (y)  does not  violate  any  provision  of law or
governmental regulation, or any order, decree, writ, injunction,  determination,
award or judgment of any court,  arbitrator or  governmental  authority,  or the
certificate  of  incorporation  or by-

                                       25
<PAGE>

laws of the  Borrower  or the  applicable  governing  charter  documents  of the
Guarantors;  and (z) does not conflict  with any of the terms of, or result in a
breach  of,  or  constitute  a default  under,  or  result  in the  creation  or
imposition  of any  lien or  charge  upon any of its  assets  pursuant  to,  any
mortgage,  indenture,  contract,  lease,  loan or  credit  agreement,  or  other
agreement or  instrument to which it is a party or by which any of its assets is
bound  (except  for such liens as are created by the Loan  Documents).  The Loan
Documents have been duly executed and delivered by the Borrower and  Guarantors,
as the case may be, and constitute legal, valid and binding  obligations of each
of the Borrower and  Guarantors,  enforceable  against them in  accordance  with
their respective terms.
                           (d) No Consents.  No  consent of any other Person and
no consent,  license,  approval or authorization of, or registration,  filing or
declaration with, any court or governmental  authority,  is or will be necessary
to  the  valid  execution,  delivery  or  performance  by  the  Borrower  or the
Guarantors of any of the Loan Documents.
                           (e) No Litigation.  Except as described on Schedule B
to this Agreement,  there are no actions,  suits, or proceedings  pending or, to
the knowledge of the Borrower,  threatened  against or affecting the Borrower or
the Guarantors or any of their properties or assets, or the proposed acquisition
of

                                       26
<PAGE>

Romtec, by or before any court, arbitrator or governmental authority.
                           (f) Title; No Liens.  The Borrower (or Guarantors, as
the case may be) has good and  marketable  title to all  properties  and  assets
reflected in the most recent year-end  consolidated balance sheet referred to in
subsection  (h) below or acquired  since such date  (except for  properties  and
assets sold or otherwise  disposed of in the ordinary  course of business  since
such date).  None of the  properties  or assets of the  Borrower,  Guarantors or
Romtec is  subject  to any  mortgage,  deed of  trust,  pledge,  lien,  security
interest,  collateral  assignment or other charge or  encumbrance of any nature,
except those in favor of the Bank and the general  charge on the assets of Total
Research, Ltd. in favor of Barclays Bank.
                           (g) Compliance with Legal Requirements.  Neither  the
Borrower nor any of the Guarantors is in default or  noncompliance  with respect
to any law, statute,  judgment, writ, injunction,  decree, rule or regulation of
any court or governmental authority.
                           (h) Financial   Statements.  (i)   The   consolidated
balance sheet of the Borrower as of June 30, 1999, and the related  consolidated
and  consolidating   statements  of  operations,   cash  flows  and  changes  in
stockholders'  equity for the  12-month  period  ended on such date,  audited by
Ernst & Young,  copies  of which  have  heretofore  been  provided  to the Bank,
present fairly the financial

                                       27
<PAGE>

condition of the Borrower and its  Subsidiaries as at such date, and the results
of  operations  and cash  flows and  changes  in  stockholders'  equity  for the
12-month period then ended. All such financial statements, including the related
schedules and notes thereto, have been prepared in accordance with GAAP.

                                    (ii) The consolidated  balance  sheet of the
Borrower as of December 31, 1999,  and the related  consolidated  statements  of
operations,  cash flows and changes in stockholders'  equity for the period from
the end of the previous  fiscal year  through such date,  certified by the chief
financial officer of the Borrower and heretofore  furnished to the Bank, present
fairly, subject to normal year-end audit adjustments, the financial condition of
the Borrower and its  Subsidiaries as at such date and results of operations and
cash  flows and  changes  in  stockholders'  equity  for such  period.  All such
financial  statements,  including the related schedules and notes thereto,  have
been prepared in accordance with GAAP.

                                    (iii)  There  has been no  material  adverse
change in the financial condition of the Borrower and its Subsidiaries from that
reflected  in the  financial  statements  referred to in  paragraph  (i) of this
sub-section.

                                    (iv)  Except as  reflected  in such  balance
sheets, the Borrower and its Subsidiaries have no material liabilities, absolute
or contingent.

                                       28
<PAGE>

                           (i)  Burdensome  Agreements.  The  Borrower  is not a
party  to any  indenture,  loan or  credit  agreement  or any  other  agreement,
contract or instrument, or subject to any certificate of incorporation,  by-law,
or corporate  restriction,  which may  reasonably be expected to have an adverse
effect on its business, properties, assets, operations or conditions,  financial
or  otherwise,  or on its  ability to carry out its  obligations  under the Loan
Documents.
                           (j)  Margin Restrictions. The Borrower is not engaged
in the business of extending  credit for the purpose of  purchasing  or carrying
margin stock within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System,  and no part of the proceeds of the credit  evidenced by
the Notes will be used to purchase  or carry any such margin  stock or to extend
credit to others for the purpose of purchasing or carrying any such margin stock
or to reduce or retire any Indebtedness  incurred for any such purpose.  No part
of the  proceeds  of the  credit  evidenced  by the  Notes  will be used for any
purpose  which  violates,  or which is  inconsistent  with,  the  provisions  of
Regulation G, T, U or X of said Board of Governors.
                           (k) ERISA.  The  Borrower  is  in compliance with all
applicable  provisions of ERISA.  No Reportable  Event (as defined in ERISA) has
occurred and is  continuing  with respect to any Plan,  and the Borrower has not
incurred any liability to the Pension Benefit Guaranty Corporation under Section
4062 of ERISA.

                                       29
<PAGE>

                           (l) Environmental   Laws.    The   Borrower  and  its
Subsidiaries  have all  permits,  licenses  and other  authorizations  which are
required  with  respect  to  its  business,  properties  and  assets  under  all
applicable  laws,   regulations  and  other  requirements  of  any  governmental
authority  relating to pollution or  protection  of the  environment  (including
laws,  regulations  and other  requirements  relating to emissions,  discharges,
releases or threatened  releases of  pollutants,  contaminants,  or hazardous or
toxic  materials or wastes into ambient air,  surface  water,  ground water,  or
land, or otherwise relating to the manufacture,  processing,  distribution, use,
treatment,   storage,   disposal,   transport,   or  handling   of   pollutants,
contaminants,   or  hazardous  or  toxic  material  or  wastes).  The  business,
properties  and assets of the Borrower and its  Subsidiaries  are in substantial
compliance with all terms and conditions of the required  permits,  licenses and
authorizations,   and  are  also  in  substantial   compliance  with  all  other
limitations,  restrictions,  conditions, standards, prohibitions,  requirements,
obligations,  schedules and  timetables  contained in those laws or contained in
any regulation,  code, plan, order,  decree,  judgment,  notice or demand letter
issued,  entered,  promulgated  or  approved  thereunder.  There  are no past or
present events, conditions,  circumstances,  activities,  practices,  incidents,
actions or plans which may interfere with, or prevent,  continued  compliance on
the part of the  Borrower  or its  Subsidiaries,  or which  may give rise to any
liability on the part

                                       30
<PAGE>

of the Borrower or its  Subsidiaries,  or otherwise form the basis of any claim,
action,  suit,  proceeding,   or  investigation  against  the  Borrower  or  its
Subsidiaries, based on or related to the manufacture,  processing, distribution,
use, treatment,  storage,  disposal,  transport,  or handling,  or the emission,
discharge, release or threatened release into the environment, of any pollutant,
contaminant, or hazardous or toxic material or waste.
                           (m) Taxes.  The  Borrower  and  its Subsidiaries have
filed or caused to be filed all tax returns which are required to be filed,  and
has paid  all  taxes  shown  to be due and  payable  on said  returns  or on any
assessments  made  against the  Borrower or its  Subsidiaries  or against any of
their  respective  properties  or  assets,  and all other  taxes,  fees or other
charges imposed on it or any of its property by any governmental authority;  and
no tax liens have been filed and, to the  knowledge of the  Borrower,  no claims
are being  asserted  against the Borrower or its  Subsidiaries,  or any of their
respective  properties  or assets  and no audit is being  conducted  in  respect
thereof,  with respect to any taxes,  fees or other charges by any  governmental
authority.
                           (n) Accuracy   of   Statements.   No   representation
contained   herein  or  in  any  other  Loan  Document,   and  no   information,
certification,  instrument,  agreement,  exhibit  or report  furnished  by or on
behalf of the Borrower or its  Subsidiaries  to the Bank in connection  with the
credit evidenced by the Notes or the negotiation of this Agreement, contains any
untrue  statement

                                       31
<PAGE>

of material  fact or omits to state any fact  necessary  to make the  statements
contained herein or therein not misleading.
                           (o) Intangibles.  The  Borrower  and its Subsidiaries
possess franchises,  patents, copyrights,  trademarks,  tradenames, licenses and
permits adequate for the conduct of its business  substantially as now conducted
without conflict with any rights of others. All the patents, patent applications
and registered trademarks of the Borrower and its Subsidiaries are identified on
Schedule  B to this  Agreement.  No  patent or  patent  application  used by the
Borrower or its  Subsidiaries  in the conduct of its business is owned by any of
its officers or shareholders.
                           (p) Chief  Executive  Office.   The  chief  executive
office of the Borrower is located in New Jersey.  Also,  the office in which the
Borrower keeps its records concerning its receivables is located in New Jersey.
                           (q) Locations of Tangible  Personalty.  Schedule B to
this  Agreement  sets  forth a list of all  places  at which  tangible  personal
property  (including  inventory,  equipment,  machinery  and  fixtures)  of  the
Borrower is located.

                                    ARTICLE V

                            COVENANTS OF THE BORROWER

         SECTION  5.01.   Affirmative  Covenants  of  the  Borrower  Other  Than
Reporting  Requirements.  Unless the Bank shall other-

                                       32
<PAGE>

wise consent in advance in writing,  so long as any of the  Obligations  remains
outstanding, the Borrower shall:
                           (a) Payment of  Indebtedness,  Taxes,  Etc.  Pay  the
Notes in accordance  with their  respective  terms and pay and perform its other
Indebtedness  and  obligations  in  accordance  with  their  terms;  and pay and
discharge all taxes, assessments and governmental charges or levies imposed upon
it or upon its income or profits, or upon any properties  belonging to it, prior
to the  date on  which  penalties  attach  thereto;  provided  however  that the
Borrower  shall  not be  required  to pay or  discharge  such  tax,  assessment,
governmental charge or levy if the validity,  amount or applicability thereof is
being  contested by the Borrower in good faith,  by appropriate  proceedings and
with  diligence and  continuity,  provided that (a) the Borrower  gives the Bank
prompt notice of its intention to contest the same, (b) such contest operates to
suspend the collection or enforcement thereof, (c) the priority of the liens and
security interests of the Bank is not impaired, (d) neither the Borrower nor the
Bank would be in danger of any  penalties or criminal  liability  for failure to
pay the  matter  contested,  and (e) the  Borrower  furnishes  to the Bank  such
security as may be requested by the Bank;  and pay all lawful claims  which,  if
unpaid, might become liens or charges upon any properties of the Borrower or any
subsidiary.
                           (b) Maintenance  of  Insurance.  Maintain   property,
casualty and  liability  insurance in such form and in such amounts

                                       33
<PAGE>

and covering  such risks as is usually  carried by companies  engaged in similar
businesses and owning similar  properties in the same general areas in which the
Borrower and the Subsidiaries operate.
                           (c) Preservation    of   Corporate   Existence    and
Qualification. Preserve and maintain its corporate existence, rights, franchises
and  privileges in its  jurisdiction  of  incorporation,  and qualify and remain
qualified  as  a  foreign   corporation  in  each  jurisdiction  in  which  such
qualification  is  necessary  in view of its  business  and  operations  and the
ownership or lease of its properties.
                           (d) Compliance   with   Laws.   Comply    with    the
requirements of all applicable laws, rules, regulations,  ordinances, and orders
of any governmental  authority  (including,  without  limitation,  ERISA and all
laws,  rules,  regulations,  ordinances and orders relating to protection of the
environment),  non-compliance  with which might adversely affect its business or
credit,  and comply with all provisions of its Certificate of Incorporation  and
By-Laws.
                           (e) Visitation Rights. Upon reasonable notice, at any
reasonable time and from time to time,  permit the Bank and any of its agents or
representatives,  to examine and make copies of and  abstracts  from its records
and books of account,  and to visit its properties,  and to discuss its affairs,
finances and accounts with any of its officers or directors.

                                       34
<PAGE>

                           (f) Keeping of  Records  and  Books of Account.  Keep
adequate records and books of account reflecting all its financial transactions.
                           (g) Maintenance of Properties.  Maintain and preserve
all of  its  properties,  necessary  or  useful  in the  proper  conduct  of its
business, in good working order and condition, ordinary wear and tear excepted.
                           (h) Maintenance of  Licenses.  Maintain  and  keep in
effect  licensing,  know-how  and  similar  agreements  necessary  in the proper
conduct of its business.
                           (i) Further Assurances.  Do, execute, acknowledge and
deliver  or cause to be done,  executed,  acknowledged  and  delivered  all such
further instruments,  acts, deeds, and assurances as may be reasonably requested
by the Bank for the purpose of carrying  out the  provisions  and intent of this
Agreement or any other Loan Document.
                           (j) Depository Accounts.  Maintain all its depository
accounts exclusively at the Bank.
                           (k) Compliance  by  Subsidiaries.   Cause  all of the
Subsidiaries  to comply with the  covenants  in this  Section  5.01,  other than
Section  5.01(a)  to the  extent  it  requires  payment  of the  Notes and other
obligations to the Bank, and Section 5.01(j).

         SECTION 5.02. Negative Covenants of the Borrower. Unless the Bank shall
otherwise  consent  in  advance in  writing,  so

                                       35
<PAGE>

long as any of the  Obligations remain outstanding, the Borrower shall not:

                           (a) Liens,  Etc.  Create,  incur, assume or suffer to
exist any mortgage,  deed of trust,  pledge,  lien, security interest,  or other
charge or  encumbrance  (including,  without  limitation,  the lien or  retained
security title of a conditional  vendor) of any nature,  whether voluntary or by
operation of law,  upon or with respect to any of its  properties  or assets now
owned or hereafter acquired,  or assign or otherwise convey any right to receive
income, except in favor of the Bank.
                           (b) Indebtedness.  Create, incur, assume or suffer to
exist any Indebtedness,  except (i) Indebtedness to the Bank, and (ii) unsecured
trade  credit  incurred by the  Borrower in the  ordinary  course of business to
vendors of goods or  providers  of  services  to the  Borrower in respect of the
purchase price of such goods and services.
                           (c) Assumptions,  Guaranties, Etc. of Indebtedness of
Other  Persons.  Assume,  guarantee,  endorse or  otherwise  become  directly or
contingently liable (including,  without limitation, liable by way of agreement,
contingent or otherwise,  to purchase,  to provide funds for payment,  to supply
funds to or  otherwise  invest in any other  Person or  otherwise  to assure any
creditor of any other Person against loss) in connection  with any obligation or
indebtedness  of any other  Person,  except for (i)  guaranties  in favor of the
Bank, and (ii)  guaranties by endorsement of negoti-

                                       36
<PAGE>

able  instruments for deposit or collection in the ordinary course of business.
                           (d) Mergers, Etc.  Merge  or consolidate with or into
(or permit any  Subsidiary to merge with or into) any Person other than a merger
of one or more Subsidiaries into the Borrower or another Subsidiary;  or acquire
(or  permit  any  Subsidiary  to  acquire)  all or any  substantial  part of the
properties  or  assets  of any  Person;  or  assign,  transfer,  sell,  lease or
otherwise dispose of all or any part of its properties or assets, other than the
Romtec Acquistion,  sales of inventory in the ordinary course of business at not
less than fair market value and  dispositions of obsolete  equipment which is no
longer useful in the conduct of its business.
                           (e) Investments in  Other Persons.  Make or suffer to
exist any loan or advance to any Person or  purchase  or  otherwise  acquire any
capital stock or obligations of or any interest in, any Person, other than

                                    (i) readily marketable direct obligations of
                           the United  States of America  having a maturity date
                           not later than one year from the date of  acquisition
                           by the Borrower;

                                    (ii) commercial paper rated in either of the
                           two highest  rating  categories  by Standard & Poor's
                           Corporation  or  Moody's  Investors  Service,   Inc.,
                           having a  maturity  not  later  than 90 days from the
                           date of acquisition by the Borrower;

                                    (iii)  certificates of deposit issued by the
                           Bank or by any commercial  bank  organized  under the
                           laws of the  United  States of  America  or any State

                                       37
<PAGE>

                           thereof  that has a  combined  capital,  surplus  and
                           profits of not less than $50,000,00; and

                                    (iv) the Romtec  Acquisition  (including the
                           capitalization  of Acquisition Sub. 1 and Acquisition
                           Sub. 2 in connection therewith).

                           (f) Sale   of   Receivables,  Etc.   Discount,  sell,
transfer or  otherwise  dispose of, with or without  recourse,  any of its notes
receivable  or  accounts  receivable;  or  (except  in the  ordinary  course  of
business, for so long as no Event of Default exists) compromise or adjust any of
them, or grant any discounts, allowances or credits on any of them.
                           (g) Dividends,  Etc.  Declare  or  pay  any dividends
(payable  in cash,  property  or  otherwise);  or enter  into any  agreement  to
purchase,  redeem or otherwise  retire,  or apply any of its cash or property to
the purchase,  redemption or other  retirement  of, or set apart any sum for the
payment  of any  dividends  on,  any of its  capital  stock;  or make any  other
distribution to its shareholders as such.
                           (h) Maintenance   of   Tangible  Net  Worth.   Permit
consolidated  Tangible Net Worth of the Borrower to be less than:  (i)$4,000,000
through June 30, 2000;  and (ii) an amount as of the end of each fiscal  quarter
of Borrower  subsequent to June 30, 2000  determined  by adding  $350,000 to the
amount in effect at the end of the previous fiscal quarter.  To illustrate,  the
minimum  tangible  net  worth  will be  $4,350,000  at  September  30,  2000 and
$4,700,000  at  December  31,  2000 and so on.  Notwithstanding

                                       38
<PAGE>

anything to the contrary in the  foregoing,  if the Romtec  Acquistion  does not
occur,  the minimum  tangible net worth shall be  $8,750,000  at the end of each
fiscal quarter.
                           (i) Maintenance  of  Ratio  of  Total  Liabilities to
Tangible  Net  Worth.  Permit the ratio of  consolidated  Total  Liabilities  to
consolidated Tangible Net Worth of the Borrower to be more than (x) 2.50 to 1 as
of the end of any fiscal quarter until the Romtec  Acquisition  occurs,  and (y)
assuming  the Romtec  Acquisition  occurs,  7 to 1 as of March 31, 2000 and each
fiscal  quarter  thereafter  through and including  March 31, 2001, 5 to 1 as of
June  30,  2001  and the end of  each  fiscal  quarter  thereafter  through  and
including  March 31, 2002, 4 to 1 as of June 30, 2002 and the end of each fiscal
quarter  thereafter  through and including March 31, 2003, and 3 to 1 as of June
30, 2003 and the end of each fiscal quarter thereafter.
                           (j) Debt Service Coverage Ratio.  Permit the ratio of
(i) the sum of net income plus taxes,  depreciation,  amortization  and interest
expense  measured at the end of any fiscal quarter for the four trailing  fiscal
quarters, to (ii) the sum of current maturities of long-term  Indebtedness as of
the end of such fiscal quarter plus interest  expense for such period to be less
than 1.35 to 1 on a consolidated basis.
                           (k) Current Ratio.  Permit  the ratio of consolidated
Current Assets to consolidated  Current  Liabilities as of the end of any fiscal
quarter to be less than 1.1 to 1.

                                       39
<PAGE>

                           (l) Change in  Nature of Business.  Make any material
change in the nature of its business.
                           (m) Transactions   with   Affiliates.   Directly   or
indirectly  purchase,  acquire or lease any property from, or sell,  transfer or
lease any property to, or enter into any other  material  transaction  with, any
director,  officer,  agent or other  Affiliate  of the  Borrower or any relative
thereof,  except:  (i)  transactions  in the ordinary  course of business and at
prices and on terms not less  favorable to the  Borrower  than those which would
have been obtained in an arm's length  transaction with a  non-Affiliated  third
party, (ii) transactions reasonably required to support the capital needs of the
Subsidiary identified on Schedule B hereto.

         SECTION 5.03.  Reporting   Requirements.   So   long   as  any  of  the
Obligations remains  outstanding,  the Borrower shall, unless the Bank otherwise
consents in writing, furnish to the Bank:

                           (a) Notice of Default: as soon as possible and in any
                  event  within  five  days  after  it  becomes   aware  of  the
                  occurrence of each Event of Default (or each event which, with
                  the  giving  of  notice  or  lapse  of  time  or  both,  would
                  constitute an Event of Default),  the written statement of the
                  chief financial  officer of the Borrower setting forth details
                  of such Event of Default (or such other  event) and the action
                  which the Borrower proposes to take with respect thereto;

                           (b) Notice of Adverse Condition: as soon as possible,
                  the written  statement of the chief  financial  officer of the
                  Borrower  setting  forth  details  of  any  action,  event  or
                  condition of any nature of which the Borrower is aware,  which
                  may  reasonably be expected to have a material  adverse effect
                  upon  the  business,  assets  or  financial  condition  of the
                  Borrower and the action

                                       40
<PAGE>

                  which the  Borrower  proposes to take with respect thereto;

                           (c) Quarterly Report: as soon as available and in any
                  event  within 45 days after the end of each of the first three
                  quarters of each fiscal year of the Borrower, the consolidated
                  and consolidating  balance sheet of the Borrower as of the end
                  of  such  quarter  and  the  consolidated  and   consolidating
                  statements   of   operations,   cash  flows  and   changes  in
                  shareholders' equity of the Borrower for the period commencing
                  at the end of the previous fiscal year and ending with the end
                  of  such  quarter,  setting  forth  in  comparative  form  the
                  corresponding  figures for the previous  fiscal  year,  all in
                  reasonable  detail and duly  certified  (subject  to  year-end
                  audit  adjustments)  by the  chief  financial  officer  of the
                  Borrower as having  been  prepared  in  accordance  with GAAP,
                  together with a  certificate  of said officer (i) stating that
                  such  officer  does not have  any  knowledge  that an Event of
                  Default (or an event  which,  with notice or the lapse of time
                  or both,  would  constitute an Event of Default) exists or, if
                  an Event of  Default  (or such  other  event)  does  exist,  a
                  statement as to the nature  thereof and the actions  which the
                  Borrower  proposes  to take  with  respect  thereto,  and (ii)
                  showing calculations of the Borrower's compliance at and as of
                  the end of each such fiscal quarter, with each financial ratio
                  and requirement of Section 5.02 of this Agreement;

                           (d) Annual  Report:  as soon as available  and in any
                  event  within 90 days after the end of each fiscal year of the
                  Borrower,  an  annual  audit  report  for  such  year  for the
                  Borrower, including therein the consolidated and consolidating
                  balance  sheet of the  Borrower  as of the end of such  fiscal
                  year and the  consolidated  and  consolidating  statements  of
                  operations,  cash flows and changes in stockholders' equity of
                  the  Borrower  for  such  fiscal   year,   setting   forth  in
                  comparative form the  corresponding  figures for the preceding
                  fiscal  year,   prepared  in  accordance  with  GAAP,  all  in
                  reasonable   detail  and  in  each  case  duly   certified  by
                  independent   certified   public   accountants  of  recognized
                  standing  acceptable to the Bank,  and by the chief  financial
                  officer  of the  Borrower,  together  with  (i) a copy  of the
                  management  letter,  if any, issued by such accounting firm to
                  the Borrower;  and (ii) a certificate of said  accounting firm
                  (A) stating  that,  in the course of auditing and reporting on
                  the financial statements of

                                       41
<PAGE>

                  the   Borrower   for such fiscal  year,  they did not discover
                  that an Event of Default  (or  an event which,  with notice or
                  the  lapse  of  time or  both,  would  constitute  an Event of
                  Default)  had  occurred  at  any time during such fiscal year,
                  or, if an Event of Default (or  such  other  event) did occur,
                  the nature  thereof,  and (B)  showing   calculations   of the
                  Borrower's   compliance    with   each  financial   ratio  and
                  requirement of Section 5.02 of this   Agreement;   and (iii) a
                  certificate  of  the chief  financial  officer of the Borrower
                  stating  that  such officer does not have any  knowledge  that
                  an Event  of  Default (or an event  which,  with notice or the
                  lapse of time or  both,  would constitute an Event of Default)
                  exists,  or, if an Event  of  Default  (or such  other  event)
                  does  exist,  a  statement  of  the  nature  thereof   and the
                  actions  which  the  Borrower  proposes  to take with  respect
                  thereto;

                           (e) SEC Reports:  as soon as  practicable,  but in no
                  event  later  than ten (10) days after the same are filed with
                  the Securities and Exchange Commission,  copies of all reports
                  on Form 10-K, 10-Q, 8-K and definitive  proxy  materials,  and
                  any exhibits to the  foregoing  if requested by the Bank,  and
                  any registration  statement or other filing of the Borrower if
                  requested by the Bank.

                           (h)  Notice  of   Lawsuits  or   Reportable   Events:
                  immediately  after (i) it  becomes  aware of the  commencement
                  thereof,   notice  in  writing  of  all  actions,   suits  and
                  proceedings  before  any  court  or  governmental   authority,
                  domestic  or  foreign,  affecting  the  Borrower or any of its
                  properties,  directly or  contingently,  which,  if determined
                  adversely,  would  have  a  material  adverse  effect  on  the
                  financial condition, properties or operations of the Borrower,
                  and (ii) it becomes aware of the occurrence thereof, notice in
                  writing of any "Reportable  Event" (as that term is defined in
                  ERISA) under any Plan; and

                           (i) Other   Information:   such   other   information
                  respecting  the  business,  properties   or the  conditions or
                  operations,  financial or otherwise,  of  the  Borrower as the
                  Bank may from time to time reasonably request.

                                       42
<PAGE>

                                   ARTICLE VI
                                EVENTS OF DEFAULT

         SECTION 6.01 Events of Default.  If any of the following  events (each,
an "Event of Default") shall occur, that is to say:

                           (a) If the Borrower  shall  default in the payment of
                  any  principal  of any Note,  or interest on any Note,  on the
                  date on which such payment shall become due; or

                           (b) If any  representation  or  warranty  made by the
                  Borrower in any of the Loan  Documents or in any  certificate,
                  agreement,  instrument or statement contemplated by or made or
                  delivered  pursuant to or in connection  with this  Agreement,
                  shall prove to have been  incorrect  in any  material  respect
                  when made; or

                           (c) If the Borrower  shall fail to perform or observe
                  any term,  covenant or agreement  contained in Section 5.02 of
                  this Agreement; or

                           (d) If the Borrower  shall fail to perform or observe
                  any term,  covenant or agreement  contained in Section 5.01 or
                  5.03 or Article VII of this  Agreement,  or the Borrower shall
                  fail to  observe  or  perform  any  other  term,  covenant  or
                  agreement  contained in any of the Loan  Documents on its part
                  to be performed or observed, and any such failure is not cured
                  within 30 days; or

                           (e) If any  default or event of default  shall  occur
                  under  any  instrument  or  agreement  (other  than  the  Loan
                  Documents) now or hereafter  existing  between the Borrower or
                  any of the Subsidiaries and the Bank,  irrespective of whether
                  or not such  agreement or instrument  relates to the financing
                  contemplated by this Agreement; or

                           (f) If the Borrower or any of its Subsidiaries  shall
                  fail to pay any  Indebtedness  (other than as evidenced by any
                  Note) owing by it to any other  creditor,  or any  interest or
                  premium  thereon,  when due, whether such  Indebtedness  shall
                  become due in installments, by scheduled maturity, by required
                  prepayment,  by acceleration,  by demand or otherwise;  or any

                                       43
<PAGE>

                  event of default or event which,  with the giving of notice or
                  lapse of time or both,  would  constitute  an event of default
                  shall occur under any agreement or instrument (other than this
                  Agreement)   evidencing   or   securing  or  relating  to  any
                  Indebtedness owing by the Borrower or any of its Subsidiaries,
                  if the effect of such event is to permit the holder(s) of such
                  other   Indebtedness   to  accelerate  the  maturity  of  such
                  Indebtedness; or

                           (g) If any of the Loan  Documents  at any time  after
                  execution  and delivery and for any reason,  shall cease to be
                  in full force and effect or shall be  declared  to be null and
                  void,  or the  validity  or  enforceability  thereof  shall be
                  contested by any party thereto; or

                           (h) If a decree or order for relief  shall be entered
                  by a court having  jurisdiction  in the premises in respect of
                  the Borrower or any  Subsidiary in an  involuntary  case under
                  the federal bankruptcy code, as now or hereafter  constituted,
                  or any other applicable federal,  state or foreign bankruptcy,
                  insolvency  or other  similar law, or a receiver,  liquidator,
                  assignee, custodian, trustee, sequestrator or similar official
                  shall be appointed for the Borrower or any of its Subsidiaries
                  or for any substantial part of their respective properties, or
                  the windingup or liquidation of their respective affairs shall
                  be ordered,  and any such decree,  order or appointment  shall
                  continue unstayed and in effect for a period of 60 consecutive
                  days; or

                           (i) If the Borrower or any of its Subsidiaries  shall
                  commence a voluntary case under the federal  bankruptcy  code,
                  as now or  hereafter  constituted,  or  any  other  applicable
                  federal,  state or  foreign  bankruptcy,  insolvency  or other
                  similar law, or any of them shall  consent to the  appointment
                  of or taking possession by a receiver,  liquidator,  assignee,
                  trustee, custodian,  sequestrator or other similar official of
                  the  Borrower  or  any  of  its   Subsidiaries,   or  for  any
                  substantial  part of their  respective  properties,  or any of
                  them shall make any  assignment  for the benefit of creditors,
                  or  the  Borrower  or  any  of  its  Subsidiaries  shall  fail
                  generally to pay their  respective  debts as such debts become
                  due,  or the  Borrower or any of its  Subsidiaries  shall take
                  corporate action in furtherance of any of the foregoing; or

                                       44
<PAGE>

                           (j) If  either  (i) any  person  shall  engage or has
                  engaged in any "prohibited transaction" (as defined in Section
                  406 of ERISA or Section 4975 of the Code)  involving any Plan,
                  (ii) any  "accumulated  funding  deficiency"  (as  defined  in
                  Section 302 of ERISA), whether or not waived, shall exist with
                  respect to any Plan,  (iii) a Reportable  Event (as defined in
                  ERISA)  shall  occur with  respect  to, or  proceedings  shall
                  commence to have a trustee  appointed,  or a trustee  shall be
                  appointed,  to  administer or to  terminate,  any Plan,  which
                  Reportable  Event or  institution  or  proceeding  is,  in the
                  reasonable   opinion   of  Bank,   likely  to  result  in  the
                  termination of such Plan for purposes of Title IV of ERISA, or
                  (iv) any Plan  shall  terminate  for  purposes  of Title IV of
                  ERISA,  and in each case in clauses (i)  through  (iv) of this
                  paragraph  (i),  such event or  condition,  together  with all
                  other such  events or  conditions,  if any,  are likely in the
                  reasonable opinion of Bank to subject the Borrower to any tax,
                  penalty or other  liabilities  in the  aggregate  material  in
                  relation to the business, operations, property or financial or
                  other condition of the Borrower taken as a whole; or

                           (k) If one or more  judgments  or  decrees  shall  be
                  entered  against  the  Borrower  or any  of  its  Subsidiaries
                  involving in the  aggregate a liability  (not fully covered by
                  insurance)  of  $250,000  or more and all such  judgments  and
                  decrees shall not have been  vacated,  discharged or stayed or
                  bonded  pending appeal within 120 days from the entry thereof;
                  or

                           (l) If the  financial  condition  of the Borrower and
                  its Subsidiaries  materially  deteriorates (in the judgment of
                  the Bank) or an event  occurs  which (in the  judgment  of the
                  Bank) materially  impairs the financial  responsibility of the
                  Borrower;

then, and in any such event,  the Bank may do any or all of the  following:  (X)
declare the entire unpaid principal amount of any or all the Notes, all interest
accrued and unpaid thereon and all other amounts payable under this Agreement to
be  immediately  due  and  payable,  whereupon  the  same  shall  become  and be
immediately due and payable,  without presentment,  demand, protest or notice of

                                       45
<PAGE>

any kind,  all of which are hereby  expressly  waived by the Borrower  (provided
however that upon the occurrence of any Event of Default described in paragraphs
(h) or (i) with respect to the Borrower,  all the foregoing shall  automatically
become  immediately due and payable);  (Y) cease making any further Advances and
cease  issuing  any  further  Letters of Credit;  and (Z)  exercise  any and all
remedies  allowed  to it by  any  document  executed  in  connection  with  this
Agreement or otherwise available at law or in equity.

                                   ARTICLE VII
                              ADDITIONAL PROVISIONS

         SECTION 7.01 Certain Environmental Matters. (A) In the event that there
shall  be  filed a lien  against  any of the  property  of the  Borrower  by any
governmental  jurisdiction  or  any  instrumentality  thereof  arising  from  an
intentional or  unintentional  action or omission of the Borrower,  resulting in
the releasing,  spilling,  pumping,  emitting,  emptying or dumping of hazardous
substances  into the waters of such State or onto lands from which it might flow
or drain into said  waters,  then,  within  thirty  (30) days from the date that
Borrower is given notice that the lien has been placed  against such property or
within such  shorter  period of time in the event that such State has  commenced
steps to cause such property to be sold pursuant to the lien, the Borrower shall
either (i) pay the claim and remove the lien from the  applicable  property,  or
(ii) furnish (a) a bond  satisfactory

                                       46
<PAGE>

to the State  agency  that  imposed  the lien in the  amount of the claim out of
which the lien  arises,  (b) a cash  deposit  in the  amount of the claim out of
which the lien arises,  or (c) other security  reasonably  satisfactory  to such
agency  in an amount  sufficient  to  discharge  the claim out of which the lien
arises.
                           (B) Should   the   Borrower   cause   or  permit  any
intentional  or  unintentional  action or omission  resulting in the  releasing,
spilling,  leaking,  pumping, pouring, emitting emptying or dumping of hazardous
substances  into the waters or onto the lands of any  State,  or into the waters
outside the jurisdiction of any State resulting in damage to the lands,  waters,
fish, shellfish,  wildlife,  biota, air and other resources owned, managed, held
in trust or otherwise  controlled by any State, without having obtained a permit
issued by the appropriate governmental authorities,  the Borrower shall promptly
clean up the same in accordance with all applicable federal,  state and/or local
statutes, laws, ordinances, rules and regulations.
         SECTION 7.02. Collateral Assignment of Accounts. As collateral security
for the payment of the Obligations and of all other  obligations and liabilities
of the Borrower to the Bank, whether now existing or hereafter arising, absolute
or contingent,  foreseen or unforeseen, of every kind or nature whatsoever,  the
Borrower  hereby  grants to the Bank a security  interest in and lien upon,  and
hereby assigns to the Bank, all funds, balances and other property of every kind
of the Borrower,  or in which the

                                       47
<PAGE>

Borrower has an interest, now or hereafter in the possession, custody or control
of the  Bank or any Bank  Affiliate.  For  purposes  of the  perfection  of said
security  interest and assignment  only,  possession of said funds,  balances or
other property of the Borrower by any Bank Affiliate  shall be deemed to be, and
the Borrower  hereby  agrees,  is,  possession of said funds,  balances or other
property of the Borrower by the Bank.
         SECTION 7.03.  Stamp Taxes.  The Borrower  shall pay any stamp taxes or
any taxes in the nature  thereof  which may be payable  in  connection  with the
execution and delivery of any Note. The Borrower hereby forever  indemnifies and
saves the Bank harmless  against any and all liability  which the Bank may incur
or which may be assessed against the Bank with respect to such tax.
         SECTION  7.04.  Disclosure  of  Financial  Information.   The  Borrower
authorizes  the Bank to  respond  to  credit  inquiries  from  trade  creditors,
financial  institutions,  financial information  distribution  organizations and
others. These responses may include, but are not limited to, loan amounts, terms
and  balances,  deposit  balances and history,  payment  history and return item
history.  The Borrower  agrees to indemnify,  defend,  release and hold the Bank
harmless,  at the  Borrower's  cost and  expense,  from and  against any and all
lawsuits, claims, actions,  proceedings,  suits, damages, judgments,  penalties,
costs and expenses, including but not limited to attorney's fees and court costs
or suits based on or arising out of the Bank's  reporting or

                                       48
<PAGE>

disclosure of such  information.  The Bank is hereby  authorized to disclose any
financial  or other  information  about the Borrower to any  regulatory  body or
agency  having  jurisdiction  over  the  Bank  or  to  any  present,  future  or
prospective  participant or successor in interest in any loan or other financial
accommodation made by the Bank to the Borrower.
         SECTION  7.05.  Letter  of  Credit.  Neither  the  Bank  nor any of its
officers or directors  shall be liable or responsible  for (i) the use which may
be made of any Letter of Credit or for any acts or omissions of the  beneficiary
or any  transferee in connection  therewith;  (ii) the validity,  sufficiency or
genuineness  of  documents  presented  under  any  Letter of  Credit,  or of any
endorsements  thereon,  even if such documents should in fact prove to be in any
or all respects invalid,  insufficient,  fraudulent or forged;  (iii) payment by
the Bank against presentation of documents which do not comply with the terms of
any Letter of Credit (including, without limitation, failure of any documents to
bear any  reference  or adequate  reference  to a Letter of Credit) or any other
circumstances  whatsoever  in making or failing to make payment under any Letter
of  Credit,  except  only that the Bank shall be liable to the  Borrower  to the
extent,  but only to the  extent,  of any direct,  as opposed to  consequential,
damages  suffered by the Borrower  which the Borrower  proves were caused by the
Bank's willful  misconduct or gross negligence in determining  whether

                                       49
<PAGE>

documents  presented  under a Letter  of  Credit  comply  with the terms of such
Letter of Credit.  In furtherance  and not in limitation of the  foregoing,  the
Bank may accept  documents  that  appear on their  face to be in order,  without
responsibility   for  further   investigation,   regardless  of  any  notice  or
information to the contrary.
                           (B) The  Bank  shall  not be liable or responsible in
any respect for (i) any error, omission,  interruption or delay in transmission,
dispatch  or  delivery  of  any  message  or  advice,  however  transmitted,  in
connection with any Letter of Credit,  or (ii) any action,  inaction or omission
which  may be taken by it in good  faith,  absent  willful  misconduct  or gross
negligence  (in  either  of which  events  the  extent of the  Bank's  potential
liability  to the  Borrower  shall be  limited  as set forth in the  immediately
preceding  paragraph),  in  connection  with any Letter of Credit.  The Borrower
further  agrees  that any  action  taken  or  omitted  by the  Bank  under or in
connection  with a Letter of Credit or the related draft or  documents,  if done
without willful  misconduct or gross negligence,  shall be effective against the
Borrower  as to the  rights,  duties and  obligations  of the Bank and shall not
place the Bank under any liability to the Borrower.

                                       50
<PAGE>

                                  ARTICLE VIII
                                  MISCELLANEOUS

         SECTION 8.01. No Waiver;  Cumulative  Remedies.  No failure or delay on
the part of the Bank in exercising any right, power or remedy hereunder or under
any  other  Loan  Document  and no course of  dealing  between  the Bank and the
Borrower,  shall  operate as a waiver of any such  right,  power or remedy;  nor
shall any single or partial exercise of any right,  power or remedy preclude any
other or further exercise  thereof or the exercise of any other right,  power or
remedy  hereunder or under any other Loan Document.  The remedies  herein and in
the other Loan Documents provided are cumulative and not exclusive of each other
or of any other remedies allowed by law or equity.
         SECTION 8.02. Amendments, Etc. No amendment, modification, termination,
or waiver of any provision of this Agreement or of any other Loan Document,  and
no  consent  to any  departure  therefrom  by the  Borrower  or any other  party
thereto, shall in any event be effective unless the same shall be in writing and
signed by the Bank,  and then such waiver or consent shall be effective  only in
the specific instance and for the specific purpose for which given. No notice to
or demand on the Borrower in any case shall entitle the Borrower to any other or
further notice or demand in similar or other circumstances.
         SECTION  8.03.  Addresses  for Notices,  Etc.  All  notices,  requests,
demands, directions and other communications

                                       51
<PAGE>

provided for  hereunder or under any other  Borrower  Loan Document and shall be
sufficient  if  delivered  personally  (including  by  Federal  Express or other
recognized courier) or if mailed by certified mail, return receipt requested, to
the applicable party at the addresses indicated below:

                           If to the Borrower:
                           -------------------

                           Total Research Corporation
                           5 Independence Way
                           Princeton, New Jersey 08543-5303

                           If to the Bank:
                           ---------------

                           Summit Bank
                           301 Carnegie Center
                           CN 5316
                           Princeton, New Jersey 08540-5316
                           Attn: Edward Winslow

                           -  with a duplicate copy to -

                           Norris, McLaughlin & Marcus
                           721 Route 202/206
                           P. O. Box 1018
                           Somerville, New Jersey 08876
                           Attention:  Douglas R. Brown, Esq.

or, as to each party, at such other address as shall be designated by such party
in a written notice to each other party  complying as to delivery with the terms
of this  Section.  No failure to provide a  duplicate  copy as  aforesaid  shall
nullify or otherwise  impair the  effectiveness  of a notice,  request,  demand,
direction or other communication given to the Borrower or the Bank. All notices,
requests,  demands,  directions  and other  communications  shall (if  delivered
personally)  be  effective  when  delivered or (if mailed)

                                       52
<PAGE>

two days after having been deposited in the mail, addressed as aforesaid.
         SECTION 8.04.  Costs and Expenses; Indemnity.  (a)  The Borrower agrees
to pay on demand  all  costs and  expenses  of the Bank in  connection  with the
preparation,  execution, delivery, administration,  modification and enforcement
of any and all of  this  Agreement  and the  other  Loan  Documents  (including,
without  limitation the fees and  disbursements of both United States and United
Kingdom counsel for the Bank).

                           (b) The Borrower agrees  to indemnify, save, and hold
harmless  the  Bank  and  its  directors,   officers,   agents,   and  employees
(collectively the "indemnitees") from and against:

                                    (i) any and all claims, demands, actions, or
                  causes of action that are asserted  against any  indemnitee by
                  any Person if the claim,  demand,  action,  or cause of action
                  directly or indirectly relates to a claim, demand,  action, or
                  cause of action  that the Person has or  asserts  against  the
                  Borrower or any Subsidiary; and

                                    (ii) any and all liabilities, losses, costs,
                  or expenses  (including  attorneys'  fees) that any indemnitee
                  suffers or incurs as a result of the  assertion  of any claim,
                  demand,   action,   or  cause  of  action   specified  in  the
                  immediately preceding subparagraph (i).

The covenants and  agreements of this Section shall survive the repayment of the
Obligations and the cancellation of the Notes.
         SECTION 8.05. Execution in Counterparts. This Agreement may be executed
in any  number of  counterparts  and by  different  parties  hereto in  separate
counterparts,  each of which shall

                                       53
<PAGE>

be deemed to be an original  and all of which (taken together)  shall constitute
one and the same agreement.
         SECTION  8.06.  Governing  Law.  This  Agreement  and  the  other  Loan
Documents  shall be governed by, and construed in accordance  with, the internal
laws of the  State  of New  Jersey  (without  giving  effect  to  principles  of
conflicts  of  law),  except  to the  extent  that  the  grant,  perfection  and
enforcement  of any charge or lien are  required  to be  governed  by the law of
England and Wales or where the State in which the property  subject to such lien
is located.
         SECTION 8.07.  Severability of Provisions;  Headings.  Any provision of
this   Agreement  or  of  any  other  Loan  Document   which  is  prohibited  or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability  without  invalidating the
remaining   provisions   hereof  or  thereof  or   affecting   the  validity  or
enforceability of such provision in any other jurisdiction.  Article and Section
headings in this Agreement are included herein for convenience of reference only
and shall not constitute a part of this Agreement for any other purpose.
         SECTION 8.08.  Set-Off.  In addition to all other rights it may have at
law or otherwise, upon the occurrence and during the continuance of any Event of
Default,  the Bank is  hereby  authorized  at any  time  and from  time to time,
without notice, to apply (and cause to be applied) any and all deposits (general
and

                                       54
<PAGE>

special and whether matured or unmatured), account balances and credits of or in
favor of the  Borrower at any time  existing in any branch or office of the Bank
or any Bank  Affiliate,  against  all  obligations  of the  Borrower to the Bank
arising  under this  Agreement  or any other  Borrower  Loan  Document,  and the
Borrower shall continue to be liable to the Bank for any deficiency.
         SECTION 8.09 Integration;  Entire Agreement.  This Agreement  restates,
replaces and supersedes, the Original Agreement. Nothing in this Agreement shall
be construed,  however,  as a termination  of or a novation with respect to, any
liabilities or obligations  outstanding  from the Borrower to the Bank under the
Original  Agreement  or  otherwise,  or to  adversely  affect the  existence  or
priority of any security interest, lien or encumbrance heretofore granted by the
Borrower  to  the  Bank  to  secure  such  liabilities  and  obligations  or the
effectiveness  of  the  security  agreements,   collateral  assignments,  pledge
agreements or other agreements and instruments creating such security interests,
liens and  encumbrances,  all of which shall  continue in full force and effect.
This Agreement, and the other Loan Documents and other instruments and documents
to be delivered hereunder and thereunder, are intended by the parties hereto and
thereto  to be  an  integrated  contract,  which  together  contain  the  entire
understandings  of the  parties  with  respect to the subject  matter  contained
herein and therein;  this Agreement and the other Loan  Documents  supersede all
prior  agreements  and  understandings

                                       55
<PAGE>

between the parties  with  respect to such subject  matter,  whether  written or
oral.
         SECTION 8.10.  Survival  of   Agreements.  All  agreements,  covenants,
representations and  warranties  made  herein  shall survive the delivery of the
Notes.
         SECTION 8.11. Waiver of Trial By Jury. IN ANY LITIGATION ARISING OUT OF
OR RELATING  TO ANY OF THE MATTERS  CONTAINED  IN THIS  AGREEMENT  OR ANY OF THE
DOCUMENTS  DELIVERED IN  CONNECTION  HEREWITH IN WHICH THE BORROWER AND THE BANK
ARE ADVERSE PARTIES, THE BORROWER AND THE BANK HEREBY WAIVE TRIAL BY JURY.
                  IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this
Agreement to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

                                              TOTAL RESEARCH CORPORATION

                                              By:/s/ Albert Angrisani
                                                 ---------------------------
                                                 Albert Angrisani, President

                                              SUMMIT BANK

                                              By:/s/ Anthony W. LaMarca
                                                 ---------------------------
                                                 Anthony W. LaMarca,
                                                 Vice President

                                       56
<PAGE>

Exhibit A:        Identification of Original Agreement and Superseded
                  Notes
Exhibit B:        Form of Facility A Note
Schedule A:       Form of Request for Advance
Schedule B:       Supplementary Information with respect to
                  Representations and Warranties in Article IV

                                       57
<PAGE>

                                    EXHIBIT A

                            List of Prior Agreements

     1.  Credit  Agreement  dated  as  of  December  23,  1991  ,  as  the  same
subsequently was amended by

         (a)  the Amendment to Credit Agreement dated June 30, 1993;

         (b)  the Second  Amendment to Credit Agreement dated as of February 29,
1994;

         (c)  the Third Amendment to Credit Agreement dated as of June 29, 1994;

         (d)  the Fourth Amendment to Credit Agreement dated as of September 14,
1994;

         (e)  the Fifth Amendment to  Credit  Agreement  dated  as of January 1,
1995;

         (f)  the  Sixth  Amendment to Credit Agreement dated as of May 3, 1995;
and

         (g) the Seventh Amendment to Credit Agreement dated June 20, 1995.

     2. Amended and Restated Credit  Agreement dated as of December 28, 1995, as
the same subsequently was amended by

         (a)  the Amendment to Amended and Restated Credit Agreement dated as of
October 10, 1996;

         (b)  the  Second  Amendment  to  Amended  and Restated Credit Agreement
dated as of February 10, 1998

         (c)  the Third Amendment to Amended and Restated Credit Agreement dated
as of July 17, 1998;

         (d)  the  Fourth  Amendment  to  Amended  and Restated Credit Agreement
dated as of August 18, 1998

         (e)  The  Fifth  Amendment  to  Amended  and Restated Credit  Agreement
dated as of September 18, 1998;

         (f)  the Sixth Amendment to Amended and Restated Credit Agreement dated
as of January 1, 1999;

                                       58
<PAGE>

          (g) the  Seventh  Amendment  to  Amended and Restated Credit Agreement
dated as of September 30, 1999;

         (h)  the  Eighth  Amendment  to  Amended  and Restated Credit Agreement
dated as of December 1, 1999

                                       59
<PAGE>

                                   SCHEDULE A

                           Form of Request for Advance

                  THIS  REQUISITION  is being  delivered  pursuant to the Second
Amended and Restated Credit  Agreement dated March _____,  2000 (as the same may
be Second  Amended and Restated  amended or restated  from time to time) between
TOTAL RESEARCH  CORPORATION  (the  "Borrower") and SUMMIT BANK (the "Bank") (the
"Credit  Agreement").  All capitalized terms used in this Request shall have the
respective meanings ascribed to them in the Credit Agreement.

                  1. The  Borrower  hereby  requests  a  Facility  A Loan in the
amount of $____________.

                  2. The  Borrower  hereby  requests a Facility B Advance in the
amount of $____________.

                  3. To induce  the Bank to make  such  Advances,  the  Borrower
hereby represents and warrants to the Bank that:

                           (i) all the representations and warranties  contained
                  in the Credit Agreement are true and complete on and as of the
                  date hereof  (with the same effect as if made on and as of the
                  date hereof); and

                           (ii) no Event of Default  (and no event  which,  with
                  notice or the  passage of time or both,  would  constitute  an
                  Event of Default) exists; and

                           (iii)  the  Borrower   has  no  offset,   defense  or
                  counterclaim  with respect to any of its obligations under the
                  Credit Agreement or any of the other Loan Documents;

                                                     TOTAL RESEARCH CORPORATION

                                                     By:
                                                        ------------------------

Dated: ________________, 2000

<PAGE>

                                   SCHEDULE B

                    Supplementary Information with respect to
                  Representations and Warranties in Article IV
                  --------------------------------------------

ss.4.01(a) -        Names of all States in which the Borrower is qualified
                    to do business as a foreign corporation:
                    ------------------------------------------------------

                      Borrower: New Jersey, Minnesota
                                    [CONFIRM]

ss.4.01(b) -          Names   of   corporations,    partnerships,    limited
                      partnerships  and joint  ventures in which the Borrower is
                      an investor, member or participant:
                      ----------------------------------------------------------

                      Total Research,  Ltd - 100% owned by Borrower  Acquisition
                      Sub 1 - 100%  owned by  Borrower  Acquistion  Sub 2 - 100%
                      owned by Acquisition Sub 1
                           Romtec, a UK  corporation  to be owned by Acquisition
                              Sub 2

ss.4.01(e) -        Description of actions, suits and proceedings:
                    ----------------------------------------------

ss.4.01(p) -        Identification of all patents, patent applications and
                    registered trademarks of the Borrower:
                    ------------------------------------------------------
Description           Owner   Identifying Number        Date Filed
-----------           -----   ------------------        ----------

<PAGE>

ss.4.01(r) -        Names of all jurisdictions (State and County) in which
                    any tangible personal property of the Borrower is
                    located:
                    ------------------------------------------------------

                      Borrower:     Minnesota (Hennepin County)
                                    New Jersey (Mercer County)
                                    Tampa, Florida
                                    Poughkeepsie, New York
                                    Chicago, Illinois

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