Document:

<PAGE>   1
                             INTERCREDITOR AGREEMENT

      THIS INTERCREDITOR AGREEMENT is entered into as of the 29th day of March,
2001 (this "Agreement"), by and between DEAN BLECHMAN and ROSS BLECHMAN
(collectively, the "Blechmans"), and THE CIT GROUP/ BUSINESS CREDIT, INC.
("Lender").

                                 R E C I T A L S

      A.    Twin Laboratories Inc., a Utah corporation ("TLI"), Advanced
Research Press, Inc., a New York corporation ("ARP"), Changes International,
Inc., a Florida corporation ("CII"), PR Nutrition, Inc., a California
corporation ("PR Nutrition"), Health Factors International, Inc., a Delaware
corporation ("HFI") and Bronson Laboratories, Inc., a Delaware corporation
("Bronson", and individually a "Debtor" and collectively with TLI, ARP, CII, PR
Nutrition and HFI, the "Debtors") and Blechmans are parties to a Reimbursement
and Security Agreement, entered into or to be entered into on or about the date
hereof (as amended, supplemented or otherwise modified from time to time, and to
which Twinlab Corporation may be a party, the "Blechmans Security Agreement")
pursuant to which Debtors have granted or will grant a security interest to the
Blechmans to secure payment and performance of the obligations of Debtors under
the Blechmans Security Agreement.

      B.    In addition, concurrently with the execution of this Agreement,
Lender is providing to Debtors a senior, secured credit facility pursuant to the
Financing Agreement dated of even date herewith (the "Loan Agreement") among
Lender, as Agent thereunder, and Debtors.

      C.    Lender and Blechmans are each unwilling to enter into their
respective transactions with Debtors unless the other enters into this
Agreement.

                                A G R E E M E N T

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

            1.    Definitions. In addition to the capitalized terms defined
elsewhere in this Agreement, the following capitalized terms shall have the
following respective meanings (such meanings to be equally applicable to the
singular and the plural forms thereof):

                  "Affiliate" shall mean, with respect to any specified Person,
(i) any other Person that, directly or indirectly, owns or controls, or has the
right to acquire, five percent (5%) or more of the Capital Stock of such
specified Person, or (ii) any other Person that, directly or indirectly,
controls, is controlled by, is under direct or indirect common control with,
such specified Person or any Affiliate of such specified Person.

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                  "Blechmans Indebtedness" shall mean all indebtedness,
liabilities and other obligations of Debtors now existing or hereafter arising
under the Blechmans Documents.

                  "Blechmans Default" shall mean an "Event of Default" as
defined in the Blechmans Security Agreement.

                  "Blechmans Documents" shall mean the Blechmans Security
Agreement and such other documents, agreements and instruments as are executed
and delivered in connection with the foregoing.

                  "Collateral" shall mean all assets and property of Debtors or
any of its or their Subsidiaries, whether real or personal, tangible or
intangible, now existing or hereafter acquired, that is or may at any time be or
become subject to a Lien in favor of Lender to secure the Lender Indebtedness.

                  "Insolvency Proceeding" shall mean any liquidation,
bankruptcy, receivership, assignment for the benefit of creditors, or any other
judicial, equitable, or administrative action or proceeding commenced by or
against any Person or any of its assets or property under federal or state law
and involving the adjustment, restructuring, or liquidation of any or all of the
assets, obligations, business, or property of such Person.

                  "Lender Documents" shall mean the Loan Agreement and the Loan
Documents as defined under the Loan Agreement (other than Loan Documents to
which the Blechmans are parties).

                  "Lender Default" shall mean an "Event of Default" as defined
in the Loan Agreement.

                  "Lender Indebtedness" shall mean all indebtedness, liabilities
and other obligations of Debtors and any Lender Loan Guarantor, now existing or
hereafter arising under the Loan Agreement and the other Lender Documents, as
each may from time to time be amended, supplemented, extended, renewed, modified
or restated in accordance with the terms of this Agreement, whether for
principal, premium, interest, fees, expenses, indemnities or otherwise.

                  "Lender Loan Guarantor" shall mean any Person which has
guaranteed the Lender Indebtedness (other than the Blechmans or either of them).

                  "Lien" means, with respect to any assets or property, any
security deed, mortgage, deed to secure debt, deed of trust, lien, pledge,
assignment, charge, security interest, title retention agreement, negative
pledge, levy, execution, seizure, attachment, garnishment, or other encumbrance
of any kind in respect of such property, whether or not choate, vested, or
perfected.

                  "Person" shall mean any individual, partnership, joint
venture, trust, unincorporated organization, association, corporation, limited
liability company, limited liability

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partnership, or governmental (whether federal, state, local, foreign, or
otherwise, including any instrumentality, division, agency, body or department
thereof) or other entity.

                  "Proceeds" shall mean any cash, securities, or other property
received upon the sale, transfer, lease or other disposition or collection of
any of the Collateral, whether pursuant to foreclosure, voluntary disposition,
sale or other disposition or collection in the ordinary course of business, or
otherwise.

                  "Senior Indebtedness" shall mean the Blechmans Indebtedness,
the Lender Indebtedness or both, as applicable.

                  "Senior Lender" shall mean Blechmans, Lender or both, as
applicable.

                  "Senior Loan Documents" shall mean the Blechmans Documents or
the Lender Documents, as applicable.

            2.    No Subordination of Indebtedness. The Lender Indebtedness and
the Blechmans Indebtedness shall rank pari passu in right to payment with one
another and neither shall be subordinate in right of payment to the other;
provided, however, in no event shall such pari passu right to payment affect the
priority of Lender as against Blechmans with respect to the Collateral and the
Proceeds, and enforcement of rights with respect thereto, as hereinafter set
forth.

            3.    Priority of Security Interests and of Rights to Proceeds;
Release of Liens; Insurance Proceeds.

                  (a) Notwithstanding the timing, order or manner of the grant
or perfection of any of their respective Liens, the Liens now or hereafter held
by Lender in any Collateral and Proceeds to secure the Lender Indebtedness shall
be senior and prior to any Liens now or hereafter held by or for the benefit of
Blechmans in or to any of the Collateral and Proceeds. The priorities set forth
in this Agreement shall be effective notwithstanding anything to the contrary
contained in the Lender Documents, the Blechmans Documents, or any plan of
reorganization or similar document filed by or on behalf of any Debtor or any
Affiliate of any Debtor under any Insolvency Proceeding of any Debtor, including
any prior perfection of a Lien under the provisions of the Uniform Commercial
Code or any other applicable laws of any jurisdiction, or the existence of any
present or future filing of financing statements under the Uniform Commercial
Code or other applicable laws of any jurisdiction in which such filing has been
made, or any other recordation or filing of any document.

                  (b) In connection with: (i) any sale or other disposition of
assets other than all or a substantial portion of the assets of a Debtor
(collectively, a "Non-Material Asset Sale"); or (ii) the sale or other
disposition of all or a substantial portion of the assets of a Debtor (a
"Material Asset Sale") occurring after the declaration by Lender of a Lender
Default and during the continuance thereof, then, if Lender releases any of its
Liens on any part of the Collateral in connection with any such sale or other
disposition, Blechmans agree that they shall unconditionally and simultaneously
release their liens thereon and Blechmans shall execute and

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deliver to Lender or the Debtors, as applicable, such termination statements,
releases and other documents as Lender or the Debtors may reasonably request to
effectuate such release.

                  (c) Unless and until the Lender Indebtedness is paid in full,
in cash, Lender shall have the sole and exclusive right, subject to the rights
of the Debtors under the Lender Documents, to adjust settlement of claims under
any insurance policy covering the Collateral in the event of any loss thereunder
and to approve any award granted in any condemnation or similar proceeding
affecting the Collateral, and all payments of claims and awards are Proceeds
hereunder.

            4.    No Enforcement of Liens. Unless and until the Lender
Indebtedness shall have been paid in full, in cash, Blechmans shall have no
right to enforce any Liens in, foreclose, levy or execute upon, or attach any
Collateral, whether by private or judicial action or otherwise.

            5.    Consent to Liens. Lender hereby consents to the grant or
creation of Liens on the Collateral and any other assets of Debtors in favor of
Blechmans under the Blechmans Documents and agrees that the grant, perfection,
maintenance or existence of such Liens does not and shall not constitute a
Lender Default. In addition, Blechmans hereby consent to the grant or creation
of Liens on the Collateral in favor of Lender under the Lender Documents, and
agree that the grant or existence of such Liens does not and shall not
constitute a Blechmans Default.

            6.    Amendment of Documents.

                  (a)  The Lender Documents may be amended in any respect
without the prior consent of Blechmans.

                  (b) The Blechmans Documents shall not be amended without the
prior written consent of Lender.

            7.    Senior Indebtedness Owed Only to Senior Lenders. Each Senior
Lender represents and warrants that it has not previously assigned any interest
in its Senior Indebtedness or Senior Loan Documents, that no other Person owns
an interest in any of such Senior Indebtedness or Senior Loan Documents (whether
as joint holders, participants or otherwise), and that such entire Senior
Indebtedness is owing only to such Senior Lender.

            8.    Reinstatement. The provisions of this Agreement shall continue
to be effective or be reinstated, and the Lender Indebtedness shall not be
deemed to be paid in full, in cash, as the case may be, if at any time any
payment of Lender Indebtedness is rescinded or avoided, or must otherwise be
returned by Lender pursuant to any Insolvency Proceeding or otherwise, all as
though such payment had not been made.

            9.    Nonimpairment. No right of either party enforce the provisions
hereof shall at any time in any way be prejudiced or impaired by any act or
failure to act by the other party or Debtors or any guarantor, or any
noncompliance by Debtors or by the other Person with the terms and provisions
and covenants herein contained, regardless of any knowledge thereof that the
party may have or with which the party may otherwise be charged.

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            10.   Additional Remedies. If either party violates any of the terms
of this Agreement, in addition to any remedies in law, at equity or otherwise,
the other party may restrain such violation in any court of law or equity and
may interpose this Agreement as a defense in any action by the violating party.

            11.   Certain Waivers.

                  (a)   All Senior Indebtedness shall be deemed to have been
made or incurred in reliance upon the terms and other provisions of this
Agreement. Each Senior Lender waives all notice of the acceptance by the other
Senior Lender of the provisions of this Agreement and agrees that the other
Senior Lender has made no representations or warranties with respect to the
legality, validity, enforceability, collectability or perfection of any Senior
Indebtedness or any liens held by it in connection therewith.

                  (b)   Each Senior Lender shall be entitled to manage and
supervise its loans or other financial accommodations to Debtors in accordance
with applicable laws and its normal business practices, modified from time to
time as it deems appropriate under the circumstances, without regard to the
existence of any rights that the other Senior Lender may now or hereafter have
in or to any Collateral, except that each Senior Lender shall comply with the
terms of this Agreement.

                  (c)   No Senior Lender shall have any liability to the other
Senior Lender as a result of any and all lawful actions not in breach of this
Agreement that such Senior Lender takes or omits to take (including actions with
respect to the creation, perfection or continuation of its liens, actions with
respect to the occurrence of a default or event of default under its Senior Loan
Documents, actions with respect to the foreclosure, sale, release or failure to
realize upon, any Collateral. Without limiting the generality of the foregoing,
Blechmans waive any otherwise valid legal or equitable right (i) to require
Lender to marshal any portion of the Collateral or otherwise to seek
satisfaction from any particular property of a Debtor or from any other Person,
(ii) to oppose any motion or application by Lender or a Debtor to allow use of
cash collateral, provide adequate protection of Lender's interest in the
Collateral, or grant relief from automatic stay to permit Lender to enforce its
rights and remedies with respect to the Collateral, or (iii) otherwise to
prohibit, delay, control, or limit in any manner the sale or other disposition
by Lender of any portion of the Collateral.

            12.   Other Waivers. No waiver shall be deemed to be made by Lender
or Blechmans of any of their respective rights hereunder unless it is in writing
signed by the waiving party. Each such waiver shall be a waiver only with
respect to the specific instance involved and shall in no way impair the rights
of the waiving party or the obligations of the other party to the waiving party
in any other respect at any other time.

            13.   Information Concerning Financial Condition. Except as
otherwise expressly provided for in this Agreement, each Senior Lender
acknowledges that the other Senior Lender has no obligation to keep it informed
of the financial condition of Debtors or of other circumstances bearing upon the
risk of nonpayment of the Lender Indebtedness or Blechmans

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Indebtedness. Each of Lender and Blechmans hereby agree that the other shall
have no duty to advise it of information known to it regarding such condition or
any such circumstances. In the event Lender or Blechmans (the "providing
party"), in its sole discretion, undertakes, at any time or from time to time,
to provide any such information to the other (the "receiving party"), the
providing party shall be under no obligation to (a) provide any such information
to the receiving party on any subsequent occasion, (b) undertake any
investigation not a part of its regular business routine, or (c) disclose any
information that, pursuant to its commercial finance practices, the providing
party wishes to maintain as confidential.

            14.   Third-Party Beneficiaries; Termination.

                  (a)   This Agreement is solely for the benefit of Lender,
Blechmans and their respective successors and permitted assigns, and no Debtor
or any other Person is intended to be a third-party beneficiary hereunder or to
have any right, benefit, priority or interest under, or because of the existence
of, or to have any right to enforce, this Agreement. This Agreement is intended
solely for the purpose of defining the relative rights of Lender and Blechmans
and is not intended to or will impair, as between any Debtor, any Lender Loan
Guarantor and their respective creditors other than Lender and Blechmans, the
respective obligations, which are absolute and unconditional, of Debtors, the
Lender Loan Guarantors to Lender or Blechmans.

                  (b)   Lender and Blechmans shall have the right to modify or
terminate this Agreement at any time without notice to or approval of Debtor or
any other Person upon the written consent of Blechmans and Lender. In addition,
Blechmans may terminate this Agreement upon the full payment and satisfaction of
the Lender Indebtedness and termination of the Lender Documents.

            15.   Notices.

                  (a)   Whenever it is provided herein that any notice, demand,
request, consent, approval, declaration or other communication shall or may be
given to or served upon any of the parties by any other parties, or whenever any
of the parties desires to give or serve upon any other parties any communication
with respect to this Agreement, each such notice, demand, request, consent,
approval, declaration or other communication shall be in writing and shall be
deemed to have been validly served, given or delivered (a) upon the earlier of
actual receipt and three (3) business days after deposit in the United States
Mail, registered or certified mail, return receipt requested, with proper
postage prepaid, (b) upon transmission, when sent by telecopier or other similar
facsimile transmission (with such telecopy or facsimile promptly confirmed by
delivery of a copy by personal delivery or United States Mail as otherwise
provided in this section), (c) one business day after deposit with a reputable
overnight courier with all charges prepaid, or (d) when delivered, if
hand-delivered by messenger, all of which shall be addressed to the party to be
notified and sent to the address or facsimile number as follows:

                        If to Blechmans, to:

                        c/o Twinlab Corporation

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                        150 Motor Parkway
                        Hauppauge, NY  11778
                        Telephone:  (631) 647-3140
                        Telecopier: (631) 630-3474

                  If to Lender, to:

                        The CIT Group/Business Credit, Inc.
                        300 S. Grand Avenue, 3rd Floor
                        Los Angeles, CA  90071
                        Attention:  Regional Manager
                        Telephone:  (213) 613-2505
                        Telecopier: (213) 613-2501

The giving of any notice required hereunder may be waived in writing by the
party entitled to receive such notice.

            16.   Costs and Attorneys' Fees. If any action, suit or proceeding
is commenced by or between any of the parties in connection with this Agreement,
the prevailing party shall be entitled to recover from the other any costs,
expenses or attorneys' fees incurred in connection therewith.

            17.   Successors and Assigns. This Agreement shall be binding on,
and shall inure to the benefit of, the parties and their respective successors
and assigns (including, in the case of any Insolvency Proceeding, any receiver,
assignee for the benefit of creditors, trustee or debtor in possession on behalf
of such Person), except as otherwise provided herein. This Agreement is freely
assignable at any time by Lender or Blechmans, provided that any such assignment
is in conjunction with the assignment or refinancing in whole or in part of the
Lender Indebtedness or Blechmans Indebtedness, as the case may be, and that such
assignment is subject to the terms of this Agreement.

            18.   Integrated Agreement. This Agreement sets forth the entire
understanding of the parties with respect to the matters set forth herein and
may not be modified or amended except in a writing signed by all parties.

            19.   Interpretation. The captions in this Agreement are for
convenience of reference only, do not constitute a part of this Agreement and
are not to be considered in construing or interpreting this Agreement. All
section, preamble, recital, exhibit, schedule, disclosure schedule, annex,
clause and party references are to this Agreement unless otherwise stated. No
party, nor its counsel, shall be deemed the drafter of this Agreement for
purposes of construing the provisions of this Agreement, and all provisions of
this Agreement shall be construed in accordance with their fair meaning, and not
strictly for or against any party.

            20.   Authority. Each of the signatories hereto certifies that such
party has all necessary authority to execute this Agreement.

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

            22.   GOVERNING LAW. IN ALL RESPECTS, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
CALIFORNIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE (WITHOUT
REGARD TO THE CHOICE OF LAW OR CONFLICT OF LAW PROVISIONS THEREOF) AND ANY
APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

            23.   WAIVER OF JURY TRIAL. EACH OF THE BLECHMANS AND LENDER WAIVES
THE RIGHT TO A TRIAL BY JURY IN ANY ACTION UNDER THIS AGREEMENT OR ANY ACTION OR
ACTIONS ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS OF WHICH
PARTY INITIATES SUCH ACTION OR ACTIONS.

            24.   Indemnity Regarding Preferences. Each of the Blechmans hereby
indemnifies the Lender and holds the Lender harmless from any and all costs,
expenses, claims, liabilities, expenses or otherwise, incurred or imposed on the
Lender by reason of a preferential transfer claim against Lender in any
Insolvency Proceeding of any Debtor based upon the junior secured creditor
status of the Blechmans vis a vis that Debtor, absent the Lender's gross
negligence or willful misconduct as finally determined by a court of competent
jurisdiction. The foregoing indemnification shall survive termination of this
Agreement until such time as the Lender Indebtedness has been finally and
indefeasibly paid in full, in cash.

            IN WITNESS WHEREOF, this Agreement has been duly executed as of the
date first written above.

[BLECHMANS SIGNATURES TO BE NOTARIZED]

"BLECHMANS"

____________________________
DEAN BLECHMAN

____________________________
ROSS BLECHMAN

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"LENDER"

THE CIT GROUP/ BUSINESS CREDIT, INC.

By:_______________________________________

Title:____________________________________

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                                 ACKNOWLEDGMENT

            Each of the undersigned hereby acknowledges and consents to the
foregoing Intercreditor Agreement and agrees to cooperate with the parties
thereto to insure enforcement of the priorities and other provisions specified
therein.

Dated as of March 29, 2001

"DEBTORS"

TWIN LABORATORIES INC.,
a Utah corporation

By: __________________________
Title:

ADVANCED RESEARCH PRESS, INC.,
a New York corporation

By: __________________________
Title:

CHANGES INTERNATIONAL, INC.,
a Florida corporation

By:_________________________
Title:

PR NUTRITION, INC.,
a California corporation

By:_________________________
Title:

HEALTH FACTORS INTERNATIONAL, INC.,
a Delaware corporation

By:_________________________
Title:

BRONSON LABORATORIES, INC.,
a Delaware corporation

By:_________________________
Title:

                                       10<PAGE>   1
                                    GUARANTY
                                   (BLECHMANS)

                                                           Dated: March 29, 2001

To:         THE CIT GROUP/BUSINESS CREDIT, INC.

Address:    300 South Grand Avenue, 3rd Floor
            Los Angeles, California  90071

Gentlemen:

      Reference is made to that certain Financing Agreement dated of even date
herewith, as amended (herein the "Agreement") between you, as Agent, and each of
Twin Laboratories Inc., a Utah corporation ("TLI"), Advanced Research Press,
Inc., a New York corporation ("ARP"), Changes International, Inc., a Florida
corporation ("CII"), PR Nutrition, Inc., a California corporation ("PR
Nutrition"), Health Factors International, Inc., a Delaware corporation ("HFI")
and Bronson Laboratories, Inc., a Delaware corporation ("Bronson", and
individually a "Company" and collectively with TLI, ARP, CII, PR Nutrition and
HFI, the "Companies"). Each of the undersigned (each a "Guarantor" and
collectively "Guarantors") hereby unconditionally jointly and severally
guarantees and agrees to be liable for the full and indefeasible payment and
performance when due of $15,000,000 of the now existing and future Obligations
(as defined in the Agreement) of the Companies, plus all costs of collection and
enforcement hereof and of the Security Agreement (as hereinafter defined) (the
"Guaranteed Obligations"). To the extent you receive payment on account of
Obligations guaranteed hereby, which payment is thereafter set aside or required
to be repaid by you in whole or in part, then, to the extent of any sum not
finally retained by you (regardless of whether such sum is recovered from you by
any Guarantor, its trustee, or any other party acting for, on behalf of or
through any Guarantor or its representative), the Guarantors' obligation to you
under this Guaranty, as amended, modified or supplemented, shall remain in full
force and effect (or be reinstated) until the Guarantors have made payment to
you therefor, which payment shall be due upon demand.

      This Guaranty is executed as an inducement to you to enter into or
continue the financing arrangement under the Agreement and to make the loans,
advances, extensions of credit or financial accommodations described therein,
and is executed in consideration of your doing or having done any of the
foregoing. Each of the Guarantors agrees that any of the foregoing shall be
deemed to have been done or

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extended by you in consideration of and in reliance upon the execution of this
Guaranty.

      Notice of acceptance of this Guaranty, the making of loans or advances, or
the extension of credit under the Agreement, the amendment, execution or
termination of the Agreement or any other agreements in connection therewith,
and presentment, demand, protest, notice of protest, notice of non-payment and
all other notices to which the Guarantors may be entitled under this Guaranty,
and your reliance on this Guaranty are hereby waived. Each of the Guarantors
also waives notice of: changes in terms or extensions of the time of payment,
the taking and releasing of collateral or guarantees and the settlement,
compromise or release of any Obligations, and agree that the amount of the
Guaranteed Obligations shall not be diminished by any of the foregoing. You
shall not be liable for failure to collect Obligations or to realize upon any
collateral or security therefor, or any part thereof, or for any delay in so
doing, nor shall you be under any obligation to take any action whatsoever with
regard thereto; provided that, notwithstanding anything to the contrary
contained herein, your rights hereunder shall be subject to the Enforcement
Conditions. "Enforcement Conditions" shall mean: (i) that recourse hereunder
shall be limited to the Collateral under and as defined in that certain Security
Agreement - Securities Pledge, dated of even date herewith, between you and
Guarantors (the "Security Agreement"), other than for any breach by a Guarantor
of the terms and conditions of the Security Agreement as to which such Guarantor
shall have full, unlimited personal liability; and (ii) that the Guaranteed
Obligations shall be due and payable in full, and enforceable against each
Guarantor (subject to the foregoing clause (i)) only upon the occurrence of an
Event of Default under and as defined in the Security Agreement.

      Subject to the Enforcement Conditions, this Guaranty is absolute,
unconditional and continuing, regardless of the validity, regularity or
enforceability of any of the Obligations or the fact that a security interest or
lien in any collateral or security therefor may not be enforceable by you or may
otherwise be subject to equities or defenses or prior claims in favor of others
or may be invalid or defective in any way and for any reason, including any
action, or failure to act, on your part. Payment by the Guarantors shall be made
to you at your office from time to time on demand if and when the Guaranteed
Obligations become due pursuant to the Enforcement Conditions. Subject to the
Enforcement Conditions, in the event any claim or action, or action on any
judgment, based on this Guaranty, is made or brought against the Guarantors,
each of the Guarantors agrees not to assert against you any set-off or
counterclaim which the other Guarantors may have, and, further, each of the
Guarantors agrees not to deduct, set-off, or seek to counterclaim for or recoup,
any amounts which are or may be owed by you to such Guarantor, or for any loss
of contribution from any other guarantor. Furthermore, in any litigation based
on the Guaranty in which you and any of the Guarantors shall be adverse parties,
the

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Guarantors hereby waive trial by jury and waive any claim of laches and waive
the performance of each and every condition precedent to which the Guarantors
might otherwise be entitled by law. In the event that you bring any action or
suit in any court to enforce any or all liabilities of the Guarantors hereunder,
service of process may be made on the Guarantors by certified or registered
mail, return receipt requested, at the address for notices to the Companies (as
defined in the Agreement) pursuant to the Agreement.

      This Guaranty may be terminated as to any one of the Guarantors only as of
any Anniversary Date (as defined in the Agreement) and then only upon actual
receipt by one of your officers of at least ninety (90) days prior written
notice of termination sent by registered or certified mail; provided however,
that any of the Guarantors so terminating this Guaranty shall remain bound
hereunder, and (subject to the limitation of the amount of the Guaranteed
Obligations set forth in second sentence of this Guaranty) this Guaranty shall
continue in full force and effect, with respect to any and all Obligations
created or arising prior to the effective date of such termination and with
respect to any and all extensions, renewals or modifications of said
pre-existing Obligations. Termination as to any one of the Guarantors shall not
affect the obligations of any of the other Guarantors, nor relieve the one
giving such notice from liability for any post termination collection expenses
or interest. This is a continuing agreement and written notice as above provided
shall be the only means of termination, notwithstanding the fact that for
certain periods of time there may be no Obligations owing to you under the
Agreement. Guarantors acknowledge and agree that termination of this Guaranty
other than pursuant to the following sentence is an Event of Default under and
as defined in the Agreement. Anything in this Guaranty to the contrary
notwithstanding, this Guaranty shall terminate and be of no force and effect
upon delivery to you of one or more letters of credit aggregating $15,000,000 in
compliance with the terms of the Blechmans Agreement Regarding Letters of Credit
(as defined in the Agreement).

      Your books and records showing the loan account(s) maintained under the
Agreement shall be admissible in evidence in any action or proceeding as prima
facie proof of the items therein set forth. Your monthly statements rendered
under the Agreement shall be binding upon the Guarantors (whether or not the
Guarantors received copies thereof) and shall constitute an account stated
unless you shall have received a written statement of the exceptions thereto
within thirty (30) days after the statement was mailed by you.

      Each of the Guarantors agrees that any and all rights of subrogation,
reimbursement, indemnity, exoneration, contribution or any other claim which it
may now or hereafter have against any other Guarantor, the Companies or any
other person directly or contingently liable for the Obligations guaranteed
hereunder, or against or

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with respect to any Company's property (including, without limitation, property
collateralizing its Obligations to you), arising from the existence or
performance of this Guaranty are subject to that certain Intercreditor
Agreement, dated of even date herewith, between Guarantors and you (the
"Intercreditor Agreement").

      Each of the Guarantors consents and agrees that, without notice to or by
such Guarantor and without affecting or impairing in any way the obligations or
liability of such Guarantor hereunder, you may, from time to time, exercise any
right or remedy you may have with respect to the Obligations or any property
securing any or all of the Obligations or any guaranty thereof, including
without limitation, judicial foreclosure, nonjudicial foreclosure, exercise of a
power of sale, and taking a deed, assignment or transfer in lieu of foreclosure
as to any such property, and each Guarantor expressly waives any defense based
upon the exercise of any such right or remedy, notwithstanding the effect
thereof upon any of such Guarantor's rights, including without limitation, any
destruction of Guarantor's right of subrogation against any Borrower under the
Agreement and any destruction of such Guarantor's right of contribution or other
right against any other guarantor of any or all of the Obligations or against
any other person, whether by operation of Sections 580a, 580d or 726 of the
California Code of Civil Procedure, or any comparable provisions of the laws of
any other jurisdiction, or any other statutes or rules of law now or hereafter
in effect, or otherwise. Pursuant to Section 2856 of the California Civil Code,
each Guarantor waives all rights and defenses that such Guarantor may have
because the Obligations are secured by real property. This means, among other
things: (a) you may collect from any Guarantor without first foreclosing on any
real or personal property collateral pledged by any Borrower or any other
guarantor; and (b) if you forecloses on any real property collateral pledged by
any Borrower or any other guarantor: (i) the amount of the Obligations may be
reduced only by the price for which that collateral is sold at the foreclosure
sale, even if the collateral is worth more than the sale price; and (ii) you may
collect from such Guarantor even if you, by foreclosing on such real property
collateral, has destroyed any right such Guarantor may have to collect from any
Borrower or such other guarantor. This is an unconditional and irrevocable
waiver of any rights and defenses each Guarantor may have because the
Obligations are secured by real property. These rights and defenses include, but
are not limited to, any rights or defenses based upon Section 580a, 580b, 580d,
or 726 of the California Code of Civil Procedure.

      This Guaranty, together with the other Loan Documents (as defined in the
Agreement), embodies the whole agreement of the parties and may not be modified
except in writing, and no course of dealing between you and any of the
Guarantors shall be effective to change or modify this Guaranty. Your failure to
exercise any right hereunder shall not be construed as a waiver of the right to
exercise the same or any

                                       4
<PAGE>   5
other right at any other time and from time to time thereafter, and such rights
shall be considered as cumulative rather than alternative. No knowledge of any
breach or other nonobservance by any of the Guarantors of the terms and
provisions of this Guaranty shall constitute a waiver thereof, nor a waiver of
any obligations to be performed by the Guarantors hereunder.

      This Guaranty may be assigned by you and shall be for your benefit and for
the benefit of any of your assignees or transferees.

      This instrument is executed and given in addition to, and not in
substitution, reduction, replacement, or satisfaction of, any other endorsements
or guarantees of the Obligations, now existing or hereafter executed by any or
all of the Guarantors or others in your favor.

      When used in this agreement, all pronouns shall, wherever applicable, be
deemed to include the singular and plural as well as the masculine, feminine,
and neuter genders. This agreement shall inure to the benefit of you, your
successors and assigns; shall be binding jointly and severally upon the
Guarantors and upon the respective heirs, executors, administrators, successors
and assigns of each of the Guarantors.

      This Guaranty may be executed in any number of counterparts, each of which
when so executed shall be deemed an original and such counterparts shall
together constitute but one and the same document.

      This Guaranty shall be governed by and construed in accordance with the
laws of the State of California.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

                                       5
<PAGE>   6
      IN WITNESS WHEREOF the Guarantors have executed and delivered this
Guaranty effective as of the date above set forth.

______________________________
      DEAN BLECHMAN

______________________________
      ROSS BLECHMAN

                  [EACH GUARANTOR SIGNATURE TO BE NOTARIZED]

STATE OF                )
                        )
COUNTY OF               )

On _________, 2001, before me, the undersigned, a notary public in and for said
State, personally appeared known to me to be Mr. Dean Blechman and Mr. Ross
Blechman who executed the within instrument.

WITNESS MY HAND AND OFFICIAL SEAL.

NOTARY PUBLIC

ACCEPTED AND AGREED:

THE CIT GROUP/ BUSINESS CREDIT, INC.

By____________________________

Title:________________________

                                       6

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