Document:

<PAGE>

                        PRODUCT DISTRIBUTION AGREEMENT

This Product Distribution Agreement (hereinafter referred to as "Agreement") is
made by and between Worldwide Product Distribution, Inc., a California
Corporation, doing business as (DBA) Worldwide Products, located and doing
business at 2060 E. Alosta Avenue, Suite 103, Glendora, California (hereinafter
referred to as "Worldwide") and Cellogique Corporation, a California
Corporation, located and doing business at 3545 Long Beach Boulevard, Suite 105,
Long Beach, California (hereinafter referred as "Distributor").

                                   RECITALS

                  WHEREAS, Worldwide has specific rights in regard to the
Research, Development and Distribution of a particular proprietary skin care
product line referred to as "Obagi Nu-Derm Skin Care" (hereinafter referred
to as "Products"); and,

                  WHEREAS, Worldwide desires to provide exclusive rights, to
Distributor, for the distribution of Products in particular geographic regions
as outlined herein; and,

                  WHEREAS, Distributor desires to secure exclusive rights for
the distribution of Products in particular geographic regions as outlined
herein.

                  NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL TERMS AND
CONDITIONS CONTAINED HEREIN, THE PARTIES HERETO AGREE AS FOLLOWS:

1.       TERM.

         1.1 The term of this Agreement will be for a period of thirty (30)
months from the execution date; unless otherwise terminated as outlined in
Section 14, entitled "Termination".

         1.2 Immediately following the initial thirty (30) month time period,
and every two years thereafter, and subject to Distributor's compliance with the
terms contained herein, this Agreement will be automatically renewed.

                                  Page 1 OF 11

                                       INITIALS:  George Michel   Max Sawaf
                                                  --------------  -------------
                                                  WORLDWIDE       DISTRIBUTOR

<PAGE>

2.       GEOGRAPHIC REGIONS.

         2.1 While this Agreement is in effect, Distributor will have the
exclusive right to distribute the Products in the following
countries/territories: Syria, Egypt, Lebanon, Jordan, Saudi Arabia, United Arab
Emirates, Bahrain, Kuwait, Iraq, Oman, Yemen, Libya, Tunisia, Morocco, Turkey,
Cypress, and Israel.

         2.2 Under no circumstances whatsoever will Distributor promote, resell
or distribute Products outside of the geographic regions outlined in this
Section, without the prior written consent of Worldwide.

3.       APPROVED MEDICAL PRACTITIONER.

         3.1 Distributor will develop, within the first six (6) months of this
Agreement, and, at all times thereafter, maintain a working relationship,
sub-contractual or employment, with a Physician whose name is on, and remains
on, an approved list of physicians of the Obagi Training Center and/or Obagi
Skin Correction Society (hereinafter, collectively, referred to as the "Obagi").

4.  MINIMUM QUARTERLY PERFORMANCE. Distributor is required to purchase, on a
quarterly basis from Worldwide, a minimum of [***]Dollars [***] worth of
Products, net of shipping, insurance, and handling charges (hereinafter
referred to as "Performance Threshold").

         4.1 This Performance Threshold will become effective on the first day
of the next calendar month immediately following the initial thirty (30) month
period of this Agreement, and continue thereafter on a quarterly basis.

         4.2 During the initial thirty (30) month period of this Agreement,
Distributor will be required to purchase, from Worldwide, a minimum of [***]
Dollars [***] worth of Products, net of shipping, insurance and handling
charges (hereinafter referred to as "Net Charges").

                                  Page 2 OF 11

                                       INITIALS:  George Michel   Max Sawaf
                                                  --------------  -------------
                                                  WORLDWIDE       DISTRIBUTOR

[***] Material has been omitted pursuant to a request for confidential treatment
      and such material has been filed separately with the Securities and
      Exchange Commission.

<PAGE>

         4.3 Immediately following the initial thirty (30) month time period,
Worldwide will have the right, but not the obligation, to increase said
Performance Threshold, within six (6) months following the initial thirty
(30) month time period and every two years thereafter, by an amount not to
exceed [***] Percent [***] of the then current Performance Threshold. Unless
amount of product purchased from Worldwide Products, Inc. reaches [***]
dollars per year, at which time performance standard may not exceed [***]
percent increases every two years.

         4.4 Worldwide will be required to forward, to Distributor and within
sixty (60) days of the thirty (30) month anniversary date of the execution of
this Agreement, and every two (2) years thereafter, written notification of any
and all increases to Performance Threshold.

5.       PURCHASE/DELIVERY OF PRODUCTS.

         5.1 Distributor will purchase all Products from Worldwide and from no
other distributor nor manufacturer. Worldwide agrees to sell to Distributor any
and all Products, as reasonably ordered by Distributor, consistent with
Worldwide's ability to stock the same in a timely manner.

         5.2 Distributor will assume all ownership rights, and any and all
responsibilities/risks attributed to said ownership rights, immediately upon
transfer of said Products from Worldwide's warehouse to a third party
transportation service.

         5.3 As dictated and selected by Distributor, Worldwide will insure
Product shipments. Regardless of whether or not Distributor wishes to insure
said shipments, Distributor will assume all ownership responsibilities as
outlined in Paragraph 5.2, and will indemnify World wide from any and all
losses or liabilities. Distributor acknowledges that Worldwide recommends,
highly, that Distributor insure any and all shipments. Distributor will be
responsible for bulk packaging of the kits for shipment and for all shipping
and insurance costs. In the event of loss or damage during shipment,
Distributor shall make its claims directly to the insurance carrier, and
Distributor shall have no claim against Worldwide. Any replacement order for
Products lost or damaged during shipment shall be treated for all purposes as
if such order were an original order.

                                  Page 3 OF 11

                                       INITIALS:  George Michel     Max Sawaf
                                                  -------------     ------------
                                                  WORLDWIDE         DISTRIBUTOR

[***] Material has been omitted pursuant to a request for confidential treatment
      and such material has been filed separately with the Securities and
      Exchange Commission.

<PAGE>

         5.4 Distributor shall pay the then current per unit purchase prices, as
listed in section 5.8 below, for the geographic regions outlined in Section 2,
entitled "Geographic Regions", for said Products, as well as for any other
product distributed by and purchased from Worldwide.

         5.5 Worldwide will have the right, but not the obligation, to, at any
time, increase said per unit purchase prices due only to an increase connected
with increased packaging and manufacturing costs. Worldwide will mail a price
adjustment notice, to Distributor, of said price adjustments at least ninety
(90) days prior to the effective date of said price adjustments.

         5.6 Distributor shall submit an order for Products, in writing,
according to the then current policies and procedures being used by Worldwide.
Upon receipt and acceptance of an order, and prior to Products being transferred
to a third party transportation service, Distributor will, via a bank-to-bank
wire transfer or letter of credit, as determined by Worldwide, prepay or assure
payment, in United States Dollars (USD), all balances due Worldwide with respect
to said order. Regardless of the manner of payment approved by Worldwide, with
respect to the ordering of products and subsequent shipments, all invoiced
amounts and/or monies due Worldwide from Distributor, will be paid/satisfied, by
Distributor, within (60)days of the applicable shipment date.

         5.7 The maximum allowable product order, to be placed by Distributor at
any one time, will be equivalent to a value of Fifty Thousand Dollars
($50,000.00), net of shipping, handling and insurance charges.

         5.8 During the initial period of thirty (30) months, Distributor
will be allowed to purchase the product Kit (consisting of ten items: Program
I Clear, Program I Basic, Program I Tolereen, Program II Clear, Program II
Basic, Program II Sunfader, Action, Sebuleen or Celluleen, Sebuleen Tonique
or Celluleen Tonique, and Eye Cream) for [***] dollars per kit. This is to
aid the Distributor in securing initial sales in the Middle East. After the
initial thirty (30) month period the price will be subject to an increase not
to exceed [***] percent of any WorldWide Products, Inc., price increases in
U.S.A., except for the allowed increases stated above in paragraph 5.5.

         5.9 In the case of distributor's need to purchase individual items
listed in the kit and Complex V; his price will be [***] percent of the
current Worldwide Products, Inc. price list, with the exception of Dermasol,
Bacitracin, Body lotion, etc.

                                  Page 4 OF 11

                                       INITIALS:  George Michel    Max Sawaf
                                                  --------------   -----------
                                                  WORLDWIDE        DISTRIBUTOR

[***] Material has been omitted pursuant to a request for confidential treatment
      and such material has been filed separately with the Securities and
      Exchange Commission.

<PAGE>
6.  CONFIDENTIALITY.  Distributor will not attempt to exploit any technical,
scientific, proprietary and/or confidential information learned/obtained
from Worldwide and/or any affiliated entities or individuals with respect to
said Products, and/or any other products distributed by Worldwide, currently
or in the future, which would affect, in any manner whatsoever, benefits
received by Worldwide from same.

7.  GOOD MANUFACTURING PRACTICES.  Worldwide warrants that any and all
Products will be manufactured and packaged utilizing Good Manufacturing
Practices (GMP).

8.  INDEMNIFICATION.

    8.1  Distributor shall hold Worldwide, Mikuda Company, Zein E. Obagi,
M.D., George H. Michel, Sc.D., and James B. Johnson, M.D., harmless from any
and all claims, demands, actions, or liabilities, including any and all court
costs and/or attorney's fees, that may arise from the activities
of Distributor, or any and all entities or individuals affiliated with
Distributor, in connection with the promotion, resale and distribution of
Products and any and all related activities, except to the extent of any
defect in the substances comprising the Product itself, with the
understanding that Distributor is not authorized to repackage nor relabel any
Products.

     8.2  This indemnification provision shall be fully enforceable,
regardless of whether or not such a demand or claim results in litigation.

     8.3  A breach of this Section by Distributor shall be considered a
material breach of this Agreement, and shall give Worldwide the option to
terminate all of Distributor's rights and privileges hereunder forthwith.
Notwithstanding any other language to the contrary in this Agreement,
Distributor's obligations as set forth in this Section shall survive in the
face of all circumstances which may occur following the signing of this
Agreement, including, but not limited to, the termination of this Agreement due
to the fault of either party, the termination of this Agreement due to the
fault of neither party, the termination of this Agreement by mutual consent,
or the termination of this Agreement due to the liquidation/termination of
Distributor. It is agreed between the parties that for the purposes of
protecting Worldwide, this indemnification provision shall be interpreted in
the broadest possible manner.

                                   Page 5 of 11

                                       INITIALS:  George Michel    Max Sawaf
                                                  --------------   -----------
                                                  WORLDWIDE        DISTRIBUTOR
<PAGE>

9.  FINANCE/COLLECTION CHARGES.  In the event that Distributor shall fail to
pay the amount due hereunder for period of thirty (30) days after the same
becomes due and payable, interest shall accrue, at the maximum amount allowed
by law, and become payable upon all unpaid balances from the time due until
the time of payment. Further, the Distributor agrees to pay any and all fees
and charges (attorney's fees, cost of suit, etc.) with regard to any
collection activity.

10.  EXCULPATION.

     10.1  Worldwide warrants that the Products, when used in accordance with
the written labeling appearing on the Products, will perform as stated in
that labeling. The written labeling appearing on each Product sets forth
the intended use of that Product. Worldwide disclaims all implied warranties
of fitness and merchantability, and all other warranties, express or implied
for Products.

     10.2  Distributor represents that he has reviewed the labeling of
Products and is aware of each Product's intended use. Distributor is also
aware of the availability of alternative materials and substances. Based upon
this review and Distributor's independent exercise of professional judgment,
Distributor will have sole responsibility for determining whether to promote,
resell and/or distribute a particular product.

11.  DISTRIBUTOR'S COMPLIANCE WITH APPLICABLE LAWS.

     11.1  Distributor represents and warrants that entry into this contract,
performance hereunder, and any and all activities that the Distributor will
engage in, as a result of this Agreement, shall not be in violation of any
laws of any country, state, province or municipality that may regulate the
Distributor's activities, nor any professional or ethical rules of conduct,
and the Distributor agrees to completely indemnify Worldwide, and any and all
affiliated entities and individuals, and hold Worldwide, and any and all
affiliated entities and individuals, harmless from any liability that may
result from any misrepresentations thereof.

     11.2  Distributor represents and warrants that all applicable and
appropriate regulatory filings will be completed for any and all geographic
regions where Distributor will promote, resell and distribute any and all
products purchased from Worldwide.  This will include, but not be limited to,
any and all applicable international as well as domestic (United States)
regulations/laws.

                               Page 6 of 11

                                       INITIALS:  George Michel    Max Sawaf
                                                  --------------   -----------
                                                  WORLDWIDE        DISTRIBUTOR

<PAGE>

     11.3  Distributor agrees that any regulatory filings completed, in
regard to licensing, patent, trademarks and/or other registrations, in any
geographic region, will first be approved by Worldwide and, when applicable
and elected by Worldwide, will include Worldwide's name on said document. In
no way will any ownership rights to any scientific, proprietary and/or
confidential information be relinquished, by Worldwide, to Distributor or any
affiliated entities or individuals.

     11.4  Worldwide agrees to make available, to Distributor, any and all
documentation, as deemed appropriate and reasonable by Worldwide, as may be
required for Distributor to respond to requests from regulatory authorities,
and only in regard to the geographic areas outlined in Section 2, entitled
Geographic Regions.

     11.5  WorldWide agrees to relabel it U.S. products, in a timely manner,
to allow distributor compliance with different geographic labeling
requirements. Distributor shall pay the extra cost directly related to such
relabeling.

12.  ASSIGNMENT/SUBLICENSE.  Distributor acknowledges that this Agreement, and
any and all rights and privileges or obligations afforded by this Agreement,
are personal and are not assignable without the prior written consent of
Worldwide. Any such assignment or attempted assignment is null and void and
shall constitute a material breach of this Agreement. This Agreement, and all
rights and obligations hereunder, shall be assignable and delegable by
Worldwide without the prior consent of Distributor. Upon notice of any such
assignment and delegation by Worldwide, Distributor shall accept said
assignee for all purposes in place and instead of Worldwide, and all rights
and obligations shall thereupon become the rights and obligations of assignee.

13.  DELAY DUE TO FORCES BEYOND CONTROL OF WORLDWIDE.  If delivery of the
Products, in whole or in part, shall be prevented or prohibited for an
unreasonable period of time by causes beyond the control of Worldwide,
including, but not limited to, acts of God, labor disputes, failure of
essential means of transportation, changes in the policy of governmental
authorities, or restrictions imposed by governmental authorities, either
Worldwide or Distributor shall have the right to cancel such product orders
to the extent of such nondelivery by written notice. In such case there shall
be no obligation or liability on the part of either party with respect to
such undelivered Products; provided that any such notice from Distributor
shall not apply to Products which have been prepared to satisfy Distributor's
order prior to actual receipt by Worldwide of such notice from Distributor.

                               Page 7 of 11

                                       INITIALS:  George Michel    Max Sawaf
                                                  --------------   -----------
                                                  WORLDWIDE        DISTRIBUTOR
<PAGE>

The parties shall exert their best effort to negotiate a reasonable reduction
in any performance threshold based on the impact of any cause beyond their
control.

14.  TERMINATION.  Without waiving or affecting any rights Worldwide or
Distributor may be entitled to assert as to the nature of other breaches of
this Agreement by the other party, Worldwide or Distributor will have the
right, but not the obligation, to terminate this Agreement in the following
manner:

     14.1  Worldwide will have the right, but not the obligation, to
immediately terminate this Agreement for any one of the following reasons
which shall be considered a material breach:

           14.1.a  Distributor's failure to comply with Section 6, entitled
"Confidentiality".

           14.1.b  Distributor's failure to comply with Section 12, entitled
"Assignment/Sublicense".

           14.1.c  The formal liquidation of and/or bankruptcy filing on
behalf of Distributor.

     14.2  The Applicable party will have the right, but not the obligation,
thirty (30) days following receipt of notice (mailed via Certified Mail,
postage paid) and complete corrective action has not been taken by the other
party, to terminate this Agreement for the following issues:

            14.2.a  Worldwide or Distributor's failure to comply with Section
11, entitled "Distributor's Compliance With Applicable Laws".

            14.2.b  Worldwide or Distributor's failure to comply with any and
all monetary obligations as specified in this Agreement, particularly those
outlined in Section 4, entitled "Minimum Quarterly Performance".

            14.2.c  Worldwide or Distributor's failure to comply with Section
3, entitled  "Approved Medical Practitioner".

            14.2.d  Distributor's failure to comply with distribution
restrictions as outlined in Section 2, entitled "Geographic Regions".

15.  LEGAL RELATIONSHIP.  The parties acknowledge that Distributor is an
independent contractor and this Agreement does not in any manner whatsoever
create a partnership or joint venture, agency or

                            Page 8 of 11

                                       INITIALS:  George Michel    Max Sawaf
                                                  --------------   -----------
                                                  WORLDWIDE        DISTRIBUTOR

<PAGE>

employment relationship between the parties hereto.  Distributor shall have
no authority to act as an agent, employee or other representative on behalf
of Worldwide and shall not make any representations on behalf of Worldwide or
enter into any agreements on behalf of Worldwide.

16.  CONSTRUCTION LIMITATIONS.  This Agreement shall be construed and
enforced in accordance with the laws of the State of California. Any action
or proceeding shall be resolved by binding arbitration in accordance with the
rules and regulations of the American Arbitration Association at Los Angeles,
California.

17.  ATTORNEY'S FEES.  Should either party hereto commence arbitration to
enforce or interpret any provision of the Agreement, the parties agree that
the prevailing party shall be entitled to reasonable attorney's fees and
costs of suit in addition to any other remedy which the court may award in
the same or separate suit maintained for such recovery.

18.  BENEFIT.

     18.1  This Agreement shall be binding upon and inure to the benefit of
the successors and assigns of Worldwide and Distributor.

19.  SEVERABILITY.  The provisions of this Agreement are severable, and if
any provision of this Agreement is held to be invalid or otherwise
unenforceable, in whole or in part, the remainder of the provisions, or
enforceable parts thereof, shall not be affected.

20.  GENERAL PROVISIONS.

     20.1  The failure of either party to enforce any provision of this
Agreement shall not be construed as waiver of such provision, nor prevent
such party thereafter from enforcing such provision or any other provision
of this Agreement. The rights granted to the parties under this Agreement are
cumulative and the election of one shall not constitute a waiver of a party's
right to assert all or other legal remedies available under the circumstances.

     20.2  Section headings used in this Agreement are for reference purposes
only and shall not affect in any way the words used in interpretation of the
provisions of this Agreement.  Words used in masculine gender include
feminine and neuter.

                              Page 9 of 11

                                       INITIALS:  George Michel    Max Sawaf
                                                  --------------   -----------
                                                  WORLDWIDE        DISTRIBUTOR
<PAGE>

     20.3  This Agreement will not be construed to constitute any form of
partnership or joint venture between the parties. Worldwide will have no
responsibility for any liability of the Distributor as the result of this
Agreement. Distributor will have no responsibility for any liability of
Worldwide as the result of this Agreement.

     20.4  Each of the parties shall hereafter execute all documents, and do
all acts necessary or reasonable in the opinion of any other party to effect
the provisions of this Agreement.

     20.5  Whenever the context so requires, the single number shall include
the plural; the plural shall include the singular; and the masculine gender
shall include the feminine and neuter genders.

     20.6  This Agreement (after full execution and delivery) memorializes
and constitutes the entire agreement and understanding, regarding the
distribution of products offered by Worldwide, between the parties, and
supersedes and replaces all prior negotiations, proposed agreements, and
agreements, whether written or unwritten. Modifications may only be made in a
written document format, executed by each of the parties. Further, each of
the parties to this Agreement acknowledges that no other party, nor any agent
or attorney of any other party, has made any promise, representation, or
warranty whatsoever, express or implied, which is not expressly contained in
this Agreement; and each party further acknowledges that it has not executed
this Agreement, on warranty, or on reliance upon any belief as to any fact
not expressly recited herein.

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

     20.8  All performances, obligations, and promises contained herein shall
survive the termination of this Agreement for any cause where the survival of
such performances, obligations, or promises is necessary to effectuate the
intent of the parties.

                                Page 10 of 11

                                       INITIALS:  George Michel    Max Sawaf
                                                  --------------   -----------
                                                  WORLDWIDE        DISTRIBUTOR

<PAGE>

**********

**********

INTENDING TO BE LEGALLY BOUND, the parties have executed this Agreement as of
5-21, 1994 at Los Angles, California.

WORLDWIDE PRODUCT DISTRIBUTION, INC., a  California Corporation

/s/ George Michel
--------------------------
DR. GEORGE MICHEL, PRESIDENT
--------------------------
Print Name and Title

CELLOGIQUE CORPORATION, a California Corporation

/s/ Max Sawaf
--------------------------
MAX SAWAF  MD, PRESIDENT
--------------------------
Print Name and Title

                                  Page 11 OF 11

                                       INITIALS:  George Michel  Max Sawaf
                                                  -------------  ------------
                                                  WORLDWIDE      DISTRIBUTOR

<PAGE>

                         PRODUCT DISTRIBUTION AGREEMENT
                                   CELLOGIQUE
                                   EXHIBIT "B"

<TABLE>
<CAPTION>

NU-DERM                      PRICE          SUGGESTED RETAIL
                                                  PRICE
<S>                         <C>                  <C>
Action                       [***]                 [***]
Basic I                      [***]                 [***]
Basic II                     [***]                 [***]
Cleanser I                   [***]                 [***]
Cleanser II                  [***]                 [***]
Clear I                      [***]                 [***]
Clear II                     [***]                 [***]
Exfoderm                     [***]                 [***]
Eye Cream                    [***]                 [***]
International Toner I        [***]                 [***]
International Toner II       [***]                 [***]
Sunfader I                   [***]                 [***]
Sunfader II                  [***]                 [***]
Tolereen                     [***]                 [***]
Pre Laser Kits               [***]                 [***]

BLUE PEEL
Blue Peel Kit                [***]                 [***]
Blue Peel Cleanser           [***]                 [***]

PROTOCOLS
Control Kit                  [***]                 [***]
Therapeutic Kit              [***]                 [***]
Foaming Gel                  [***]                 [***]
Toner                        [***]                 [***]
Clear                        [***]                 [***]
Blender                      [***]                 [***]
Exfoderm                     [***]                 [***]
Sunblock                     [***]                 [***]
Comfort Gel                  [***]                 [***]
Action                       [***]                 [***]
Eye Cream                    [***]                 [***]
</TABLE>

Date: 12-1-99                                       Date: 12-1-99
     ---------------                                     ---------------

/s/ Philip Rose                              /s/ Mazen Youssef
------------------------                     ------------------------------
Philip Rose                                  Mazen Youssef
President, CEO                               President
OMP, Inc.                                    Cellogique

[***] Material has been omitted pursuant to a request for confidential treatment
      and such material has been filed separately with the Securities and
      Exchange Commission.

<PAGE>

                                   CELLOGIQUE
                                   "EXHIBIT C"

Commencing on the date of the first Obagi Protocols purchase, payment terms
will become Net 90 days. During the first year sales must meet or exceed [***]
 net (excluding product additions beyond Obagi Color and Protocols) to
continue "Exhibit B" for one year.

Promotion materials will be billed at net cost of OMP.

/s/ Philip Rose                             /s/ Mazen Youssef
--------------------------                  --------------------------------
Philip J. Rose                              Mazen Youssef
President, CEO                              President
Obagi Medical Products.                     Cellogique Corporation

Dec 1st, 99                                 Dec 1st, 99

[***] Material has been omitted pursuant to a request for confidential treatment
      and such material has been filed separately with the Securities and
      Exchange Commission.

<PAGE>

                                   CELLOGIQUE

                               OBAGI COLOR PRICING
                                 APRIL 27, 2000

<TABLE>
<CAPTION>

OBAGI COLORS                                        PRICE
<S>                                                <C>
Lip Recovery Stick, (1 shade)                      [***]
Lip Color, (12 shades)                             [***]
Eye Color, (5 shades)                              [***]
Powder Blush, (4 shades)                           [***]
Mascara, (1 shade)                                 [***]
Shampoo, (Gentle and Deep Cleansing)               [***]
Intensive Conditioner                              [***]
Cream Foundations, (10 shades)                     [***]
Liquid Foundations, (10 shades)                    [***]
Color Corrector Wheel                              [***]
</TABLE>

Dated: 01/27/00                        Date: 05-10-2000
       ----------                            ---------
/s/ Philip Rose                        /s/ Mazen Youssef
------------------------               ------------------------------
Philip Rose                            Mazen Youssef
President, CEO                         President
OMP, Inc.                              Cellogique

[***] Material has been omitted pursuant to a request for confidential treatment
      and such material has been filed separately with the Securities and
      Exchange Commission.<PAGE>

                                                                  EXHIBIT 10.22

                           MASTER SEPARATION AGREEMENT

     This AGREEMENT  ("Agreement")  is made as of December 6, 2000, by and among
KENNETH KIM ("Kim"), MARON NU-TECH, INC., a California corporation ("Maron") and
OBAGI MEDICAL PRODUCTS, INC., a California corporation ("Company").

                                    RECITALS

     WHEREAS,  Kim and Company have previously  entered into certain  agreements
that provided Kim with rights to distribute Company's products and, in addition,
Kim has acquired  certain  interests in entities which hold rights to distribute
Company's products,

     WHEREAS,  Kim hereby agrees to sell,  transfer,  convey and  relinquish all
rights to  distribute  the  Company's  products,  and to transfer to Company any
interest  held by Kim in any  entity,  except as  provided  in Section 1 herein,
which holds the rights to distribute the Company's products,

     WHEREAS, Kim believes that neither he, Maron, nor his affiliates have any
ownership interests in Obagi Singapore Pte. Ltd. ("Obagi Singapore") (other than
a possible ownership interest of Dermatech in Obagi Singapore and a legal charge
over shares of Obagi Singapore in favor of Dermatech) and he believes that Obagi
Asia Pte. Ltd. ("Obagi Asia") is dormant, with no activity,

     WHEREAS,  Kim is willing to agree not to compete with Company,  as provided
in Section 5.1 of this Agreement,  subject to the terms and conditions set forth
in this Agreement,

     WHEREAS, in consideration for the relinquishment by Kim as set forth
above, Company agrees to pay Kim the sum of [***] United States Dollars
($[***])  payable  in  accordance  with  the  terms of this Agreement,

     WHEREAS, Maron and Company executed a Restated and Amended International
Product Distribution Agreement on June 7, 1999 ("1999 Agreement"),

     WHEREAS,  Company executed a Promissory Note payable to Maron dated June 7,
1999,  providing  for  payments  over time on an  original  principal  amount of
$[***] ("1999 Note") arising out of a Settlement  Agreement dated June 7, 1999
among Company, Kim and Maron (the "Settlement Agreement"),

     WHEREAS, Maron and Company both wish to terminate the 1999 Agreement and to
effect the  extinguishment of all obligations  under the 1999 Agreement,  except
for the  obligations  set forth in sections 9 and 11.1 of the 1999 Agreement and
in the 1999 Note, which obligations shall  specifically  survive the termination
of the 1999 Agreement, and

     WHEREAS, in consideration for the termination of the 1999 Agreement,
Company agrees to pay  Maron the sum of [***] United States Dollars
($[***]) payable in accordance with the terms of this Agreement,

                                       -1-

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

     NOW,  THEREFORE,  in consideration of these premises,  and the mutual terms
and conditions contained herein, Kim, Maron and Company hereby agree as follows:

SECTION 1. TRANSFER OF INTERESTS; TERMINATION OF 1999 AGREEMENT PAYMENTS BY
           COMPANY

     1.1  TRANSFER OF INTERESTS BY KIM.  Upon the terms and  conditions  of this
Agreement and in  consideration  for the payments to be made by Company pursuant
to Section 1.3 herein, effective at the closing of the transactions contemplated
in this Agreement  (the  "Closing") on December 21, 2000 or sooner (the "Closing
Date"), Kim hereby agrees as follows:

          (a)  To sell, transfer, convey and assign to Company all shares of
Derma Tech, Inc. (the "Shares") owned by Kim, which Shares represent fifty
percent (50%) of the issued and outstanding shares of Derma Tech, Inc. ("Derma
Tech").

          (b) To sell,  transfer,  convey and assign to Company,  or cause to be
sold,  transferred,  conveyed and assigned to Company, any interest in any loan,
security,  any right to receive any remuneration and/or any equity interest that
Kim or his  respective  agents,  assignees,  or  entities in which Kim holds any
interest  ("Kim  Affiliates")  may have in or to Obagi  Singapore  or any of its
shareholders.

          (c) To sell,  transfer,  convey and assign to Company,  or cause to be
sold,  transferred,  conveyed and assigned to Company, all rights held by Kim in
the Obagi name and the Obagi Asia name (the "Names"), the right to use the Names
and any interest in the Names held by Obagi Asia.

          (d) To sell,  transfer,  convey and assign to Company,  or cause to be
sold,  transferred,  conveyed  and  assigned  to  Company,  all other  ownership
interests  or  rights  to  receive  any  remuneration  held  by Kim  or the  Kim
Affiliates, directly or indirectly, in any entity (other than Maron) which holds
the rights to distribute any of the Company's  products,  a complete list of all
such entities, if any, is attached hereto as Schedule 1.1(d).

          1.2  TERMINATION OF 1999  AGREEMENT.  Maron and Company agree that the
1999 Agreement shall be terminated as of the Closing Date, with the exception of
sections 9 and 11.1  thereof  which shall  survive the  termination  of the 1999
Agreement.  Effective on the  Closing,  Maron and Company  shall each  expressly
release the other, and the other's  shareholders,  directors and officers, as to
all liability for claims and demands arising from the other's performance of the
1999  Agreement,  except for claims and demands arising from sections 9 and 11.1
thereof and claims for any amounts  which are due and payable  thereunder  as of
the Closing Date, which shall survive the termination of the 1999 Agreement. For
the  elimination  of any doubt,  the parties hereby  acknowledge  and agree that
Company  remains  and shall  remain  liable to Maron  under  the 1999  Note,  in
accordance with its original terms and that a true and complete copy of the Note
is attached hereto as EXHIBIT A.

          1.3  PAYMENTS BY COMPANY.

               (a) In  consideration  of all of the  foregoing  provisions,  the
provisions of Section 5 of this Agreement,  and the terms and conditions hereof,
effective at the Closing

                                       -2-
<PAGE>

Company agrees to pay Kim the sum of [***] United States Dollars ($[***]),
payable as follows:

                    (i) A cash payment of [***] United States Dollars ($[***])
which has previously been paid to Kim,  receipt of which is hereby acknowledged;
and

                    (ii) A cash payment of [***] United States Dollars ($[***])
at the Closing.

                    (iii) The balance of [***] United States Dollars ($[***])
according to the following payment schedule:

[***]                   $[***]                [***]                  $[***]
[***]                   $[***]                [***]                  $[***]

               (b) In consideration of all of the foregoing provisions and
the terms and  conditions hereof, effective at the Closing Company agrees to
pay Maron the sum of [***] United States Dollars ($[***]) according to the
following payment schedule:

[***]                   $[***]                [***]                  $[***]
[***]                   $[***]                [***]                  $[***]

     1.4 INTEREST.  In addition to the payments pursuant to Section 1.3,
Company agrees to pay interest to Kim and to Maron on the outstanding
principal balance during the period from the Closing Date through [***].
Interest shall be calculated  based on a 365-day year at the time of each
principal  payment on the outstanding principal balance on the day before the
principal payment is due and shall be fixed for the  period at the rate of
[***] percent ([***]%) per  annum. [***]

          (a)  [***]; and

          (b)  [***].

     1.5 PROMISSORY NOTES. At the Closing,  Company shall execute and deliver
to the respective  payees thereof two  subordinated  promissory notes (the
"Notes") for the  aggregate  outstanding  balance of [***]United States
Dollars  ($[***]) payable under Section 1.3 above, payable to Kim and Maron,
respectively, in the forms attached hereto as of EXHIBIT B and EXHIBIT C,
respectively.  Maron and Kim hereby agree that the Notes and related lien
shall be subordinate to the loan and related lien of Imperial Bank (or such
other commercial lender as may succeed Imperial Bank as commercial  lender to
Company ("Successor Lender")) (such senior loan or loans, however, not to
exceed in any event the principal amount of

                                       -3-

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

$10,000,000), and further agree to execute the Subordination Agreements in favor
of Imperial Bank in the form of EXHIBIT D attached  hereto at the Closing and to
execute in the future a subordination agreement in favor of any Successor Lender
provided  that such  subordination  agreement  is the same in  substance  as the
Subordination Agreement, as amended, in favor of Imperial Bank.

     1.6  INSTRUMENTS OF CONVEYANCE AND TRANSFER / CLOSING DELIVERIES. At the
Closing:

          (a) Kim shall  deliver  to  Company  certificate(s)  representing  the
Shares duly endorsed in blank with stock powers attached duly executed in blank,
in proper form for transfer.

          (b) Kim shall deliver or cause to be delivered to Company accurate and
complete  copies of the documents in his  possession  consisting of the Articles
(or  Certificate)  of  Incorporation,  Bylaws,  shareholder and director (to the
extent, and if, relevant)  minutes,  written consents and other shareholder (and
director) actions taken,  list of all  shareholders,  all qualification or other
authorities (or clearances) issued by all state and other governmental bodies as
required for all of such company's  stock  issuances with all amendments to each
of the same,  and the books and records,  of each entity other than Maron (i) in
which Kim has an ownership  interest or has a right to receive  remuneration and
(ii)  which  holds  rights  to  distribute   any  of  the   Company's   products
(collectively, the "Transferred Companies").

          (c) Simultaneously with such delivery,  Kim will take all steps as may
be  reasonably  necessary  to  effectuate  the  transfer  to the  Company of all
ownership  interests  or rights to receive  remuneration  held by Kim or the Kim
Affiliates,  directly or  indirectly,  in Obagi  Singapore,  Obagi Asia and each
other Transferred Company.

          (d) The  Company  shall  cause each of the  Transferred  Companies  to
execute and deliver to Kim and Maron a waiver and release in the form of EXHIBIT
E attached hereto.

          (e) At the Closing,  Maron and Kim shall deliver to Company  checks in
the amounts,  if any, they  respectively  owe to Company as of the Closing Date.
Company  shall have  furnished  to Maron and Kim  accurate  invoices  for orders
through the Closing Date at the Closing.

     1.7 SECURITY INTEREST.  As security for Company's payment obligations under
the Notes,  Company  hereby  grants to Kim and  Maron,  as  secured  parties,  a
security  interest  in the  assets of  Company  described  in EXHIBIT F attached
hereto,  which  security  interest  shall be subordinate to the lien of Imperial
Bank (or of a  Successor  Lender,  if any,  which  is  party to a  subordination
agreement  as provided in Section  1.5 of this  Agreement).  Kim and Maron shall
each have all the  rights  of a  secured  party  under  the  California  Uniform
Commercial Code as to the security interest granted herein.

     1.8  SUB-DISTRIBUTORS.  On or before the Closing Date,  Company shall enter
into new distribution  agreements with Maron's  sub-distributors,  including but
not limited to Malaysia,  Indonesia,  and Singapore,  and with Korea (which is a
direct distributor for which Maron acts as handling agent, but for simplicity of
reference  herein shall be included  among the  subdistributors)  with regard to
distribution  of  Company's  products,  and Kim and  Maron  agree to  reasonably
cooperate with Company in facilitating  the execution of such  agreements.  Such
new

                                       -4-
<PAGE>

agreements shall contain  provisions  releasing Maron and Kim from any
liability under the sub-distribution  agreements between Maron and such
sub-distributors, as a condition to the  effectiveness  of the new
distribution agreements with Company. [***].  Upon demand by Company,
Maron shall cooperate with Company to terminate  any  sub-distribution
agreement after the Closing, provided  that Company  indemnifies and holds
harmless Maron, its shareholders,  officers,  and directors from any claims
arising out of Maron's termination and its cooperation with such termination.

SECTION 2. REPRESENTATIONS AND WARRANTIES

     2.1  REPRESENTATIONS AND WARRANTIES OF KIM. Kim and Maron hereby represent
and warrant to Company as follows, which representations and warranties shall be
true and correct at and as of the Closing Date:

          (a)  ENFORCEABILITY.  The execution,  delivery and performance of this
Agreement  and  the  consummation  of  the  transactions  contemplated  by  this
Agreement have been authorized and approved by Kim, Maron,  and Derma Tech. This
Agreement has been duly  executed and  delivered by Kim and  constitutes a valid
and legally  binding  agreement of Kim enforceable in accordance with its terms,
subject,  as to enforcement,  to bankruptcy,  insolvency,  fraudulent  transfer,
reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors' rights and to general equity principles.  This Agreement
has been  duly  executed  and  delivered  by Maron and  constitutes  a valid and
legally  binding  agreement of Maron  enforceable in accordance  with its terms,
subject,  as to enforcement,  to bankruptcy,  insolvency,  fraudulent  transfer,
reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors' rights and to general equity principles.

          (b) THE SHARES. The Shares are owned,  directly by Kim, free and clear
of  any  lien,  claim,  charge,   encumbrance,   pledge,  security  interest  or
restriction  of any  nature  whatsoever  ("Encumbrances")  and  represent  fifty
percent (50%) of the issued and outstanding  shares of Derma Tech. Upon delivery
of the Shares and payment therefor pursuant hereto,  good and valid title to the
Shares, free and clear of all Encumbrances, will pass to Company.

          (c)  THE TRANSFERRED COMPANIES. Kim's ownership interest or right to
receive remuneration from the Transferred Companies or their shareholders is
free and clear of any Encumbrances.

          (d)  FINANCIAL STATEMENTS. [INTENTIONALLY OMITTED].

          (e)  ABSENCE OF CERTAIN CHANGES. To the best of Kim's knowledge, other
than as specifically disclosed in this Agreement or in any of the exhibits
hereto, since January 1, 2000:

                                       -5-

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

               (i) None of the assets of any  Transferred  Company has been sold
or transferred,  and none of the debts or claims of any Transferred  Company has
been cancelled, except in the ordinary course of business;

               (ii)  None of the  assets  of any  Transferred  Company  has been
leased,  mortgaged,  pledged,  subjected to any liens,  encumbrances or security
interests;

               (iii)  None  of  the  Transferred  Companies  have  acquired  any
additional  assets except as acquired in the ordinary  course of business and as
consistent with its prior business practices;

               (iv) There has been no payment by any Transferred  Company of any
dividends or any distribution by the Transferred Company of any of its assets to
any of its  shareholders  in redemption  or as the purchase  price of any of its
capital stock or in discharge or  cancellation,  whether in part or in whole, of
any indebtedness (whether in payment of principal, interest or otherwise), owing
to any of its said  shareholders,  except  a  pro-rata  distribution  to Kim and
Company of the balance in the Derma Tech bank  account at Bank of America on the
date of the Closing;

               (v) There has not been any material  increase in the compensation
payable or to become payable by any Transferred  Company to any of its employees
or agents, or any bonus payment or arrangement made to or with any of them;

               (vi)  There  has not been any  amendment  or  termination  of any
material  contract,  agreement or license to which any Transferred  Company is a
party other than in the ordinary course of business;

               (vii)  There has not been any  payment to or  commitment  entered
into by any Transferred  Company  respecting any liabilities,  expenses or costs
incurred in connection with this Agreement (including,  without limitation,  any
finder's  fee  or  commission,  but  excluding  any  legal  or  accounting  fees
occasioned hereby); and

               (viii) There has been no material damage, destruction or loss, or
other  change  of  a  material  nature,  to  the  financial  condition,  assets,
liabilities, obligations or operations of any Transferred Company.

          (f)  ABSENCE  OF  UNDISCLOSED  LIABILITIES.   To  the  best  of  Kim's
knowledge, except as set forth in Derma Tech's balance sheet as of June 30, 2000
attached hereto as EXHIBIT G, or otherwise  disclosed in this  Agreement,  or in
any other exhibit to this  Agreement,  Derma Tech is not obligated  for, nor are
any of its assets or  properties  subject to, any  liabilities  or  obligations,
whether or not such  liabilities or obligations  are normally shown or reflected
on a balance sheet in a manner  consistent  with generally  accepted  accounting
principles, other than liabilities or obligations arising in the ordinary course
of  business  since  June  30,  2000,  which  ordinary  course  liabilities  and
obligations,  in the aggregate,  are not materially adverse to Derma Tech. Derma
Tech is not in default  with  respect to any  material  term or condition of any
material  indebtedness or liability  (including  trade  payables).  In addition,
there are no facts in  existence on the date hereof and known to Kim which might
reasonably serve as the basis, in whole or in part, for any material liabilities
or obligations of

                                       -6-
<PAGE>

Derma Tech, not disclosed in this  Agreement or in any of the exhibits  attached
hereto. [***].

          (g)  CLAIMS  BY KIM.  Except  as set  forth  on  Schedule  2.1(g),  no
Transferred Company is, and as of the Closing Date will not be, indebted to Kim,
its  trustor,  trustee  or  any  of  its  beneficiaries  for  any  liability  or
obligation,  whether arising by reason of an ownership  interest in such company
or otherwise.

          (h) ARTICLES,  BYLAWS, MINUTES AND PERMITS. To his best knowledge, Kim
has made available to Company accurate and complete  copies,  to the extent they
are in his possession,  of each Transferred  Company's Articles (or Certificate)
of  Incorporation,  Bylaws,  shareholder  and director  (to the extent,  and if,
relevant) minutes, written consents and other shareholder (and director) actions
taken, list of all shareholders,  and all qualification or other authorities (or
clearances)  issued by all state and other  governmental  bodies as required for
all of such company's stock  issuances,  together with all amendments to each of
the  same,  and the books  and  records  in his or  Maron's  possession  of each
Transferred  Company.  To Kim's best knowledge,  nothing contained in any of the
foregoing  prevents or adversely  affects the  consummation of the  transactions
contemplated  by  this  Agreement.   The  articles  of  incorporation,   bylaws,
qualification  documents  for stock  issuances,  and  minutes  of Derma Tech are
accurate and complete and in full force and effect.

          (i) NO OTHER RIGHTS OF PAYMENT.  Kim is not aware of any agreements or
arrangements  other  than as  disclosed  herein,  whereby  any person or entity,
including  but not  limited  to any other  shareholders  of any  company or such
shareholder's relatives or entities in which such shareholders have an interest,
is entitled to a payment of cash distributions from any Transferred Company.

          (j) SUB-DISTRIBUTION AGREEMENTS.  EXHIBIT H attached hereto contains a
true and  complete  list of Maron's  sub-distributors,  and prior to the Closing
Maron shall have delivered to Company true and complete copies of all of Maron's
agreements  with such  sub-distributors.  Such  agreements  contain the complete
agreements  between  Maron and each such  sub-distributor,  and are valid and in
full force and effect,  to Kim's and Maron's best  knowledge,  and, to Kim's and
Maron's best  knowledge,  there are no liabilities of Maron  connected with such
agreements which have not been previously disclosed to Company.

          (k)  MARON LICENSES. Maron represents that all licenses held by it are
listed on Schedule 2.1(k) attached hereto.

     2.2  REPRESENTATIONS AND WARRANTIES OF COMPANY. Company hereby represents
and warrants to Kim, which representations and warranties shall be true and
correct at and as of the Closing Date:

          (a)  ENFORCEABILITY.  The execution,  delivery and performance of this
Agreement  and  the  consummation  of  the  transactions  contemplated  by  this
Agreement have been authorized and approved by Company.  This Agreement has been
duly  executed  and  delivered  by Company and  constitutes  a valid and legally
binding agreement of Company enforceable in

                                       -7-

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

accordance  with  its  terms,   subject,  as  to  enforcement,   to  bankruptcy,
insolvency, fraudulent transfer, reorganization,  moratorium and similar laws of
general applicability  relating to or affecting creditors' rights and to general
equity principles.

          (b) DUE  DILIGENCE.  Company has had ample  opportunity to perform due
diligence in  connection  with this  Agreement  and review any and all financial
statements,  documents,  records, reports,  schedules and other forms of data as
requested by Company.

          (c)  SUB-DISTRIBUTORS. [INTENTIONALLY OMITTED].

          (d)  SHAREHOLDERS OF COMPANY.  The  shareholders of Company holding of
record as of the date of this Agreement more than ten percent (10%) of Company's
voting shares are identified in Schedule 2.2(d) hereto.

SECTION 3. INDEMNIFICATION

     3.1  INDEMNIFICATION  BY KIM.  Effective  at the  Closing,  Kim  agrees  to
indemnify  Company against and hold Company  harmless from and in respect of any
and all losses,  liabilities,  damages,  reasonable  expenses (including without
limitation  reasonable expenses of investigation and defense and reasonable fees
and disbursements of counsel),  claims, liens or other obligations of any nature
whatsoever  (collectively,  "Losses")  which may arise out of, be based upon, be
incurred  by  virtue  of  or  result  from  or  relate  to  the  breach  of  any
representation  or warranty made by Kim in this  Agreement or in any document or
instrument delivered by Kim at the Closing Date pursuant hereto.

     3.2 INDEMNIFICATION BY COMPANY. Effective at the Closing, Company agrees to
indemnify  Kim and Maron  against  and hold Kim and Maron  harmless  from and in
respect of any and all Losses which may arise out of, be based upon, be incurred
by virtue of or result  from or relate to the  breach of any  representation  or
warranty  made by Company in this  Agreement  or in any  document or  instrument
delivered by Company at the Closing Date pursuant hereto.

     3.3 DEFENSE OF CLAIMS. In the case of any claim for  indemnification  under
Section 3.1 or 3.2 arising from a claim of a third party, an indemnified  person
shall give prompt written notice to the indemnifying  person of any claim,  suit
or demand of which such indemnified  person has knowledge and as to which it may
request indemnification  hereunder. The indemnifying person shall have the right
to defend and to direct the defense against any such claim,  suit or demand,  in
its name or in the name of the  indemnified  person,  as the case may be, at the
expense  of  the  indemnifying   person,   and  with  counsel  selected  by  the
indemnifying  person  unless  (i) such  claim,  suit or  demand  seeks an order,
injunction or other equitable relief against the indemnified person, or (ii) the
indemnified  person  shall  have  reasonably  concluded  that there is an actual
conflict of interest between the indemnified person and the indemnifying  person
in the conduct of the defense of such claim,  suit or demand,  in which case the
indemnified  person may,  with the approval of the  indemnifying  person  (which
approval  shall not be  unreasonably  withheld),  select  counsel  for itself to
defend such claim, suit or demand.  The indemnified  person shall have the right
to participate in the defense of any claim, suit or demand with counsel selected
by it. The  reasonable  fees and  disbursements  of such counsel shall be at the
expense of the indemnified person. The indemnifying person may settle any claim,
suit or demand for

                                       -8-

<PAGE>

which an  indemnified  person has sought  indemnification  under  Section 3.1 or
Section 3.2. The indemnifying  person shall have no indemnification  obligations
with  respect to any such  claim,  suit or demand  which shall be settled by the
indemnified person without the prior written consent of the indemnifying  person
(which consent shall not be unreasonably withheld, conditioned or delayed) other
than a claim,  suit or demand as to which the  indemnifying  person shall not in
fact have employed counsel to assume the defense of such claim, suit or demand.

SECTION 4. MUTUAL RELEASES

     4.1 RELEASES BY COMPANY.  Effective at the Closing,  Company,  on behalf of
itself   and  its   shareholders,   parent  or  sister   companies,   employees,
representatives,    agents,   insurers,   attorneys,   administrators,    heirs,
beneficiaries,   executors,  trustees,  principals,  predecessors,   successors,
assignors, assignees, past and present, hereby fully releases and discharges Kim
and his respective  employees,  officers,  agents,  representatives,  attorneys,
administrators,  heirs, insurers,  corporations in which Kim holds any interest,
and each of their respective predecessors,  successors, assignors and assignees,
past and  present,  with respect to any and all claims,  actions,  and causes of
action, of any kind or nature whatsoever, in law, equity, or otherwise,  whether
fixed  or  contingent,  whether  now  known  or  unknown  whether  suspected  or
unsuspected, and whether concealed or hidden, which now exist or which may exist
hereafter,  relating  to, or  arising  out of, any act,  transaction,  agreement
occurrence, event, error, or omission by any of them prior to the effective date
of this Agreement.  Notwithstanding  anything to the contrary  contained herein,
the releases set forth in this paragraph shall not be deemed to effect a release
of Kim's or Maron's obligations set forth in this Agreement.

     4.2 RELEASES BY MARON. Effective at the Closing, Maron, on behalf of itself
and its shareholders,  parent or sister companies,  employees,  representatives,
agents, insurers, attorneys,  administrators,  heirs, beneficiaries,  executors,
trustees, principals,  predecessors,  successors, assignors, assignees, past and
present,  hereby  fully  releases and  discharges  Company,  and its  respective
employees,   officers,   shareholders,   agents,   representatives,   attorneys,
administrators,  insurers, corporations in which Company holds any interest, and
each of their respective predecessors, successors, assignors and assignees, past
and present, with respect to any and all claims,  actions, and causes of action,
of any kind or nature whatsoever, in law, equity, or otherwise, whether fixed or
contingent,  whether now known or unknown, whether suspected or unsuspected, and
whether  concealed  or hidden,  which now exist,  or which may exist  hereafter,
relating  to, or arising out of, any act,  transaction,  agreement,  occurrence,
event,  error,  or omission by any of them prior to the  effective  date of this
Agreement.  Notwithstanding  anything  to the  contrary  contained  herein,  the
releases set forth in this paragraph  shall NOT be deemed to effect a release of
the Company's  obligations  under this Agreement or under the 1999 Note, nor any
other obligations set forth in this Agreement.  Instead, the obligations assumed
by Company  pursuant to this Agreement  shall survive the execution and delivery
of this  Agreement  and  shall  remain  binding  upon  Company  until all of its
obligations hereunder have been fully performed.

     4.3 RELEASES BY KIM.  Effective  at the Closing,  Kim, on behalf of himself
and his representatives,  agents, insurers,  attorneys,  administrators,  heirs,
beneficiaries,  executors, trustees, principals, corporations in which Kim holds
any interest, predecessors,  successors, assignors, assignees, past and present,
hereby fully releases and discharges Company,  Obagi Asia, Obagi Singapore,  and
Derma Tech, and their respective employees, officers, shareholders,

                                       -9-
<PAGE>

agents, representatives,  attorneys,  administrators,  insurers, corporations in
which  they  hold  any  interest,  and each of  their  respective  predecessors,
successors,  assignors and assignees,  past and present, with respect to any and
all claims, actions, and causes of action, of any kind or nature whatsoever,  in
law,  equity,  or otherwise,  whether fixed or contingent,  whether now known or
unknown,  whether  suspected or  unsuspected,  and whether  concealed or hidden,
which now exist, or which may exist  hereafter,  relating to, or arising out of,
any act, transaction, agreement, occurrence, event, error, or omission by any of
them prior to the effective date of this Agreement.  Notwithstanding anything to
the contrary  contained  herein,  the releases set forth in this paragraph shall
NOT be deemed to effect a release of Company's obligations under this Agreement.
Instead,  the  obligations  assumed by Company  pursuant to this Agreement shall
survive the  execution and delivery of this  Agreement and shall remain  binding
upon Company until all of its obligations hereunder have been fully performed.

SECTION 5. NON-COMPETITION AGREEMENT

     5.1  NON-COMPETITION.  Effective at the Closing,  during the seven (7) year
period ("Restrictive Period') commencing as of the Closing Date, Kim, Maron, and
each Kim Affiliate shall not, either directly or indirectly,  (i) promote,  sell
or offer  for sale in any  country  in the world  any  goods or  articles  which
contain  hydroquinone  as one of its  ingredients  or any system of  products in
which  one of  the  products  contains  hydroquinone  as one of its  ingredients
("Competitive  Activity")  (ii) engage in a Competitive  Activity for his or its
account,  (iii) enter the employ of,  render any services to, or lend the use of
his or its name to, any entity  engaged in a Competitive  Activity,  and/or (iv)
become  interested  in  any  such  entity  in  any  capacity,  including  as  an
individual,  partner, shareholder,  officer, director, principal, agent, member,
trustee or consultant;  provided,  however,  that Kim may own a passive security
investment in any class of  securities of an entity the  securities of which are
publicly  traded so long as the ownership of said  securities does not exceed 2%
of the issued and outstanding  securities of the class so owned. Kim or Maron or
a Kim Affiliate may purchase products from or sell products to an entity engaged
in a  Competitive  Activity so long as Kim's,  Maron's,  or the Kim  Affiliate's
business with that entity are entirely separate from the Competitive Activity of
such  entity  and the  confidentiality  obligations  of Kim,  Maron  and the Kim
Affiliate are observed.

     5.2  INTENTIONALLY OMITTED.

     5.3  CONFIDENTIALITY.  Effective  at the Closing,  Kim and Maron  hereafter
agree to hold in trust and  confidence  all  financial,  personal,  customer and
other information of a confidential  nature concerning Company and not to use or
disclose  such  information  in  any  manner  other  than  for  the  purpose  of
transactions with Company.  Nothing herein shall prevent Kim from discussing the
terms of this Agreement with his legal  representative  and/or tax and financial
advisors  or as  necessary  to enforce  this  Agreement  in a court of law or to
comply with the law or a request  from a  regulatory  organization.  Information
shall not be deemed confidential, if such information is that which:

          (a) Kim or Maron can prove by documentary  evidence was already in its
possession  and  subject  to  free  disposal  prior  to  the  disclosure  of the
information by Company;

                                      -10-
<PAGE>

          (b) Is hereafter  disclosed to Kim or Maron or a Kim Affiliate without
the  obligation  of  confidence  by a  third  party  who  did  not  derive  such
information directly or indirectly from Company;

          (c) Is or  becomes  generally  available  to  the  public  in  printed
publications in general  circulation  through no breach by Kim or Maron or a Kim
Affiliate. However, confidential information shall not be deemed to be generally
available  to the public if it is known only to a few of those people to whom it
might be of commercial  interest,  and a combination  of two or more portions of
the confidential  information  shall not be deemed to be generally  available to
the public only by reason of each separate portion being so available;

          (d)  Is disclosed pursuant to the agreement of the parties; or

          (e)  Is  disclosed  to a  person  who  separately  had  received  that
information from Company without the obligation of confidence.

     5.4 RIGHTS AND REMEDIES UPON BREACH. If any party breaches, or threatens to
commit a breach of, any of the provisions  hereof, the party not in breach shall
have the following  rights and remedies,  each of which shall be  independent of
the others and severally enforceable, and each of which shall be in addition to,
and not in lieu of, any other  rights or remedies  available to the party not in
breach, at law or in equity under this Agreement or otherwise:

          (a) SPECIFIC PERFORMANCE.  The right and remedy to have each and every
one of the covenants in this Agreement  specifically  enforced and the right and
remedy  to  obtain  injunctive  relief,  it  being  agreed  that any  breach  or
threatened breach of any of the covenants herein would cause irreparable  injury
to the party not in breach and that money  damages would not provide an adequate
remedy.

          (b) ACCOUNTING. The right and remedy to require the party in breach to
account  for and pay over to the party not in  breach,  as the case may be,  all
compensation, profits, monies, accruals, increments or other benefits derived or
received as the result of any  transaction or activity  constituting a breach of
this Agreement.

     5.5 SEVERABILITY OF COVENANTS. Kim and Maron acknowledge and agree that the
restrictive  covenants in this Agreement are reasonable and valid in geographic,
temporal and subject matter scope and in all other  respects,  and do not impose
limitations  greater than are  necessary to protect the  goodwill,  confidential
information,  and other business  interests of Company.  If, however,  any court
subsequently  determines  that  any of the  restrictive  covenants,  or any part
thereof is invalid or unenforceable,  the remainder of the restrictive covenants
shall not thereby be affected and shall be given full effect  without  regard to
the invalid portions.

     5.6 DURATION OR SCOPE  REDUCTION.  If any court  determines that any of the
restrictive  covenants,  or any part thereof,  is  unenforceable  because of the
duration or scope of such  provision,  such court shall have the power to reduce
the duration or scope of such provision, as the case may be, and, in its reduced
form, such provision  shall then be enforceable to the maximum extent  permitted
by applicable law.

                                      -11-
<PAGE>

     5.7 ENFORCEABILITY IN ALL JURISDICTIONS. Kim and Maron intend to and hereby
confer  jurisdiction  to  enforce  each and every one of the  covenants  in this
Agreement upon the courts of any  jurisdiction  within the  geographic  scope of
such  restrictive  covenants.  If  the  courts  of  any  one  or  more  of  such
jurisdictions  hold the  restrictive  covenants  unenforceable  by reason of the
breadth of such scope or  otherwise,  it is the  intention of Kim and Maron that
such  determination  shall not bar or in any way affect  Company's  right to the
relief  provided  above in the  courts  of any  other  jurisdiction  within  the
geographic  scope  of  such  restrictive  covenants,  as  to  breaches  of  such
restrictive covenants in such other respective  jurisdictions,  such restrictive
covenants as they relate to each jurisdiction being, for this purpose, severable
into diverse and independent covenants.

SECTION 6. MISCELLANEOUS AND GENERAL

     6.1  PAYMENT  OF  EXPENSES.  Upon  Closing,  each  party  hereto  shall  be
responsible  for its own expenses  incident to preparing for,  entering into and
carrying out this Agreement and the transactions contemplated hereby.

     6.2  SURVIVAL. The representations and warranties made or deemed made in
this Agreement shall survive the Closing.

     6.3  MODIFICATION  AND  AMENDMENT.  Subject to applicable  law, at any time
prior to the Closing, the parties hereto may modify or amend this Agreement,  by
written agreement between Kim, Maron, and Company.

     6.4 COUNTERPARTS. For the convenience of the parties hereto, this Agreement
may be  executed  in any number of  counterparts,  each such  counterpart  being
deemed  an  original  instrument,  and  all  such  counterparts  shall  together
constitute the same agreement. The signatures to this Agreement may be delivered
in  facsimile  form,  rather  than  original,  and the  parties  agree that such
facsimile signatures shall be deemed for all purposes as original signatures.

     6.5  GOVERNING  LAW. This  Agreement  shall be governed by and construed in
accordance with the internal laws of the State of California.  Jurisdiction  and
venue in any action arising  hereunder shall be in a court of competent  subject
matter jurisdiction in Los Angeles, California.

     6.6 NOTICE. Any notice, request,  instruction or other document to be given
hereunder  by any party to the other  shall be in writing and shall be deemed to
have been duly given (i) on the date of delivery if delivered personally,  or by
telecopy or telefacsimile,  (ii) on the first business day following the date of
dispatch if delivered by Federal Express or other next-day courier  service,  or
(iii) on the third  business day  following  the date of mailing if delivered by
registered or certified mail,  return receipt  requested,  postage prepaid.  All
notices  hereunder  shall be delivered  as set forth below,  or pursuant to such
other  instructions as may be designated in writing by the party to receive such
notice.

                                      -12-

<PAGE>

          (a)  If to Company:

                          Obagi Medical Products, Inc.
                          310 Golden Shore, Suite 200
                          Long Beach California 90802
                          Attn: CEO
                          Facsimile: (310) 320-9357

               With copy to:

                          Robert J. Stemler, Esq.
                          Keesal, Young & Logan
                          400 Oceangate
                          Long Beach, California 90801
                          Facsimile: (562) 436-7416

          (b)  If to Kim:

                          Kenneth H. Kim
                          c/o Maron Nu-Tech, Inc.
                          9025 Wilshire Boulevard, Suite 302
                          Beverly Hills, California 90211
                          Facsimile: (310) 247-0110

               With copy to:

                          Allen C. Kim, Esq.
                          Sidley & Austin
                          555 West Fifth Street
                          Los Angeles, California 90013
                          Facsimile: (213) 896-6600

          (c)  If to Maron:

                          Maron Nu-Tech, Inc.
                          9025 Wilshire Boulevard, Suite 302
                          Beverly Hills, California 90211
                          Facsimile: (310) 247-0110

               With copy to:

                          Allen C. Kim, Esq.
                          Sidley & Austin
                          555 West Fifth Street
                          Los Angeles, California 90013
                          Facsimile: (213) 896-6600

                                      -13-
<PAGE>

     6.7  ASSIGNMENT.  This  Agreement  and the  rights  hereunder  shall not be
assignable or transferable by Company,  Maron, or Kim (including by operation of
law in  connection  with a  merger,  or sale of  substantially  all the  assets)
without the prior written consent of the other parties hereto, except:

          (a) Kim may transfer Kim's right to receive payment  hereunder without
the consent of the Company to Kim's  ancestors,  descendants or spouse,  or to a
trust, partnership,  limited liability company, custodianship or other fiduciary
account  for the benefit of Kim and/or such  ancestors,  descendants  or spouse,
including any distribution from any such trust,  partnership,  limited liability
company,  custodianship  or  other  fiduciary  account  to any of the  foregoing
permitted beneficial owners or beneficiaries thereof,

          (b) Maron may distribute its rights  hereunder  without the consent of
the  Company to Kim,  Kim's  ancestors,  descendants  or spouse,  or to a trust,
partnership, limited liability company, custodianship or other fiduciary account
for the  benefit  of Kim  and/or  such  ancestors,  descendants  or  spouse in a
liquidating distribution, and

          (c) Company may, one time only, transfer without the consent of Kim or
Maron its rights,  duties and  obligations  under this  Agreement  to a Delaware
corporation  whose  assets and  shareholders  are  identical to those of Company
prior to such transfer;  provided that such Delaware  corporation  shall execute
and deliver appropriate  assignment and assumption documents (including allonges
to the Notes)  necessary and  appropriate to achieve the assumption of Company's
rights,  duties and obligations under this Agreement,  including its obligations
under the Notes.

     6.8 ATTORNEYS' FEES. If any legal proceeding is brought for the enforcement
of this Agreement, or because of an alleged breach, default or misrepresentation
in connection  with any provision of this Agreement or other dispute  concerning
this Agreement,  the successful or prevailing party shall be entitled to recover
reasonable  attorneys'  fees and other  costs  incurred in that  proceeding,  in
addition to any other relief to which it may be entitled.

     6.9 CAPTIONS.  The Article,  Section and paragraph  captions herein are for
convenience  of reference  only, do not  constitute  part of this  Agreement and
shall not be deemed to limit or otherwise affect any of the provisions hereof.

     6.10 FURTHER  ASSURANCES.  From time to time, as and when  requested by any
party hereto, the other party shall execute and deliver, or cause to be executed
and delivered, all such documents and instruments and shall take, or cause to be
taken,  all such further or other  actions,  as such other party may  reasonably
deem necessary or desirable to consummate the transactions  contemplated by this
Agreement.

                                      -14-
<PAGE>

     IN WITNESS  WHEREOF this  Agreement has been duly executed and delivered by
Company, Maron, and Kim as of the date first written above.

                                   MARON NU-TECH, INC.

                                   By: /s/ KENNETH H. HIM
                                      -----------------------------------------
                                   Its: President
                                      -----------------------------------------

                                   OBAGI MEDICAL PRODUCTS, INC.

                                   By:  /s/ PHILLIP J. ROSE
                                      -----------------------------------------
                                      Phillip J. Rose

                                   Its: President
                                      -----------------------------------------

                                   By: /s/ CANDACE C. CRAWFORD
                                      -----------------------------------------
                                      Candace C. Crawford

                                   Its: Secretary

                                   /s/ KENNETH H. KIM
                                   --------------------------------------------
                                   Kenneth H. Kim

                                      -15-
<PAGE>

                                    EXHIBIT A

                              1999 PROMISSORY NOTE

<PAGE>

                                    EXHIBIT B

                     PROMISSORY NOTE PAYABLE TO KENNETH KIM

<PAGE>

                                 PROMISSORY NOTE

$[***]                                          Dated: as of _________, 2000

     1.   PRINCIPAL.

     FOR  VALUE  RECEIVED,  the  undersigned,   OBAGI  MEDICAL  PRODUCTS,
INC., ("Borrower"),  hereby  promises to pay to the order of KENNETH H. KIM
("Lender") the principal sum of [***] United States Dollars and No Cents
(U.S.$[***]) (the "Loan") with interest from the date of this Note on the
unpaid principal until paid at the rate of [***] percent per annum.

     2.   PAYMENT, MATURITY DATE.

     Borrower  shall make  principal  payments (plus all accrued but then unpaid
interest on the Loan), on the dates and in the amounts indicated below:

[***]                   $[***]                [***]                  $[***]
[***]                   $[***]                [***]                  $[***]

     Unless accelerated pursuant to the terms of this Note, the unpaid principal
balance of this Note, together with all unpaid interest accrued thereon, and all
other amounts  payable by Borrower under the terms of this Note shall be due and
payable on [***] (the "Maturity Date").

     If any payment of principal or interest to be made by Borrower shall become
due on a day other than a Business  Day,  such payment shall be made on the next
succeeding  Business  Day and  such  extension  of time  shall  be  included  in
computing any interest with respect to such payment.  "Business  Day" shall mean
any Monday, Tuesday,  Wednesday,  Thursday or Friday on which banks are open for
business in Los Angeles, California.

     All interest due hereunder  shall be computed on the basis of a year of 365
days for the actual number of days elapsed.

     Except as provided in the  immediately  following  paragraph,  all payments
received  by Lender  under this Note shall be  credited  first to any charges or
other  expenses  for which  Lender is  entitled  to payment  hereunder,  next to
accrued but unpaid interest, and third to unpaid principal.

                                       -1-

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

     3.   MANNER OF PAYMENT.

     Principal  and  interest  on  the  Loan,  and  all  other  amounts  payable
hereunder,  is payable  in lawful  currency  of the United  States of America in
immediately  available  funds at Lender's  address of 9025  Wilshire  Boulevard,
Suite 302, Beverly Hills,  California 90211,  payable to Kenneth H. Kim, or such
other address as Lender may designate in writing to Borrower.

     4.   EVENTS OF DEFAULT/REMEDIES.

          a.   EVENTS OF DEFAULT. Any of the following events shall constitute
an Event of Default:

               (1)  breach  by  Borrower  of any of  Borrower's  obligations  or
covenants under this Note;  provided that Borrower shall have ten (10) days from
the date of any failure to perform any of its  obligations  or  covenants  under
this Note not  involving  the payment of money to Lender,  within  which to cure
said failure; or

               (2)  Borrower   (A)  becomes   insolvent  or  admits  in  writing
Borrower's  inability  to pay  Borrower's  debts as they  mature,  (B) makes any
assignment  for the benefit of creditors,  or (C) applies for or consents to the
appointment  of a receiver or trustee for Borrower or for a substantial  part of
Borrower's property or business, or a receiver or trustee otherwise is appointed
and is not discharged within thirty (30) days after such appointment; or

               (3) any of Borrower's  representations  or warranties made herein
or in any statement or certificate at any time given by Borrower pursuant hereto
or in connection herewith is false or misleading in any material respect and has
not been cured  within ten (10) days  after  notice of such  breach by Lender to
Borrower; or

               (4) any  bankruptcy,  insolvency,  reorganization  or liquidation
proceeding or other  proceeding  for relief under any  bankruptcy law or any law
for the relief of debtors is instituted by or against Borrower; or

               (5) any money judgment, writ or warrant of attachment, or similar
process  (singly or, if more than one,  cumulatively  in excess of  $100,000) is
entered  or filed  against  Borrower  or any of the assets of  Borrower  and (A)
remains unvacated,  unbonded, unstayed, undismissed or undischarged for a period
of thirty  (30) days or in any event later than five (5) days before the date of
any proposed sale thereunder,  or (B) Borrower has not appealed the same in good
faith to Lender's satisfaction; or

               (6)  the  condition,  financial  or  otherwise,  of the  Borrower
suffers any material  adverse change,  in the reasonable  opinion of the Lender,
and has not been  cured  within  ten (10) days  after  notice of such  breach by
Lender to Borrower; or

               (7) more than  fifty  percent  (50%) of the equity  interests  in
Borrower  is held by a person or persons  other than the  holders of such equity
interests on the date of this Note,  except that no Event of Default  under this
clause  shall  occur (i) if  Borrower  is, at the time of such  change in equity
interest, a publicly traded company or (ii) if Mandarin Partners, LLC,

                                       -2-
<PAGE>

which  holds in excess of seventy  percent  (70%) of the  outstanding  shares of
Borrower on the date of this Note,  distributes shares of Borrower on a pro rata
basis to each of its  members  (provided  that such  members are the same on the
date of such distribution as on the date of this Note); or

               (8) more than  fifty  percent  (50%) of the equity  interests  in
Borrower  or in the  assets  of  Borrower  is  transferred  or sold in a  single
transaction,  except  that  Company  may,  one time  only,  transfer  without it
constituting an Event of Default its duties and obligations under this Note to a
Delaware  corporation  whose assets and  shareholders  are identical to those of
Company prior to such transfer;  provided that such Delaware  corporation  shall
execute and deliver appropriate  allonges to this Note necessary and appropriate
to achieve the assumption of Company's duties and obligations under this Note.

          b.  REMEDIES.  Upon the  occurrence  and during the  continuance of an
Event of  Default  described  in  Subsections  4(a)(2)  or  4(a)(4)  above,  all
indebtedness under this Note shall automatically be immediately due and payable.
In addition, Lender, at its option, and without notice to Borrower, may take one
or more of the  actions  described  below.  Upon the  occurrence  and during the
continuance  of any other  Event of Default,  Lender at its option  and,  unless
otherwise specified below, without notice to Borrower, may do any one or more of
the following:

               (1) declare all indebtedness  under this Note immediately due and
payable and credit any sums received thereafter in such manner as it elects upon
such indebtedness;  provided, however, that such application of sums so received
shall not serve to waive or cure any  default  existing  under  this Note nor to
invalidate  any notice of default or any act done  pursuant  to such  notice and
shall not prejudice any rights of Lender; and

               (2)  exercise  any or all rights  provided or permitted by law or
granted pursuant to this Note in such order and in such manner as Lender may, in
its sole judgment, determine.

     c.   NO WAIVER OF REMEDIES. No waiver of any breach of or default under any
provision of this Note shall constitute or be construed as a waiver by Lender of
any subsequent breach of or default under that or any other provision of this
Note.

     d.  REMEDIES  NOT  EXCLUSIVE.  No remedy  herein  conferred  upon Lender is
intended to be exclusive of any other  remedy  herein or in any other  agreement
between the parties  hereto or by law provided or  permitted,  but each shall be
cumulative and shall be in addition to every other remedy given hereunder or now
or hereafter existing at law, in equity or by statute.

     5.   REPRESENTATIONS AND WARRANTIES OF BORROWER.

     Borrower hereby makes the following  representations and warranties,  which
shall be deemed to be continuing representations and warranties until payment in
full of all indebtedness of Borrower to Lender arising pursuant to this Note.

     a.   NO CONFLICT. The execution, delivery and performance of this Note are
not in contravention of or in conflict with any agreement, indenture or
undertaking to which Borrower

                                       -3-
<PAGE>

is a party or by which  Borrower or any of Borrower's  assets or property may be
bound  or  affected  and do not  cause  any  security  interest,  lien or  other
encumbrance to be created or imposed upon any such property by reason thereof.

     b.   NO DEFAULT. There has occurred and is continuing no Event of Default
or any event which with the giving of notice or the lapse of time, or both,
would constitute an Event of Default.

     c. LITIGATION.  There is no action,  suit or proceeding  pending or, to the
best of  Borrower's  knowledge  and  belief,  threatened  against  or  affecting
Borrower which could impair the validity, effectiveness or enforceability of, or
impair Borrower's  ability to perform its obligations  under this Note,  whether
said actions,  suits or proceedings  are at law or in equity or before or by any
governmental authority.

     6.   DEFAULT RATE.

     Any amounts not paid when due shall thereafter bear interest at the rate of
eight percent (8.0%) per annum.

     7.   WAIVER.

     Borrower  hereby  waives any right of offset  Borrower may now or hereafter
have against Lender (without limiting the foregoing,  Borrower waives any offset
it might have against  Lender  arising out of any  agreements or any  commercial
relationship  between  Borrower  and Lender),  and  Borrower  hereby also waives
diligence,  presentment,  protest and demand,  notice of protest,  dishonor  and
nonpayment of this Note and expressly agrees that,  without in any way affecting
the liability of Borrower hereunder,  Lender may extend any maturity date or the
time for payment of any installment due hereunder,  accept additional  security,
release any party  liable  hereunder  and release any  security now or hereafter
securing this Note.  Borrower  further waives,  to the full extent  permitted by
law, the right to plead any and all statutes of  limitations as a defense to any
demand  on  this  Note,  or on any  deed of  trust,  security  agreement,  lease
assignment, guaranty or other agreement now or hereafter securing this Note.

     8.   RIGHT OF SETOFF.

     Upon and after the  occurrence  of any Event of  Default,  Lender is hereby
authorized  by Borrower,  at any time and from time to time,  without  notice to
Borrower,  to set off against,  and to appropriate  and apply to the payment of,
the  obligations  and  liabilities  of Borrower  hereunder  (whether  matured or
unmatured),  any  accounts  maintained  with it by  Borrower  and/or any and all
amounts owing by Lender to Borrower  (whether matured or unmatured,  and however
evidenced).

     9.   JURISDICTION.

     For any action  related to the judicial  enforcement or  interpretation  of
this Note,  Borrower  expressly submits to the nonexclusive  jurisdiction of the
state or federal  courts  located  in the County of Los  Angeles in the State of
California  at the election of Lender,  which  election may be made from time to
time. Borrower further irrevocably consents to the service of process

                                       -4-
<PAGE>

out of any of the aforementioned courts in any such action or proceeding by
mailing of copies thereof by registered or certified mail, postage prepaid, to
Borrower at Borrower's address for notice furnished to Lender, such service to
become effective five (5) days after such mailing. Nothing herein shall affect
the right to serve process in any other manner permitted by law or the right of
Lender to bring legal action or proceedings in any other jurisdiction.

     10.  WAIVER OF JURY TRIAL.

     BORROWER HEREBY AGREES TO WAIVE ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS NOTE, OR ANY DEALINGS RELATING
TO THE SUBJECT MATTER OF THIS NOTE AND THE LENDER/BORROWER RELATIONSHIP THAT IS
BEING ESTABLISHED. The scope of this waiver is intended to be all-encompassing
of any and all disputes that may be filed in any court and that relate to the
subject matter of this transaction, including without limitation, contract
claims, tort claims, breach of duty claims, and all other common law and
statutory claims. Borrower acknowledges that this waiver is a material
inducement to Lender to make the Loan and that Lender has already relied on this
waiver in entering into this transaction, and that Lender will continue to rely
on this waiver in its related future dealings. Borrower further warrants and
represents that it has reviewed this waiver with its legal counsel, and that it
knowingly and voluntarily waives its jury trial rights following consultation
with legal counsel. THIS WAIVER IS IRREVOCABLE, AND THE WAIVER SHALL APPLY TO
ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS NOTE,
OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING THERETO. IN THE EVENT OF
LITIGATION, THIS NOTE MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

     11.  LEGAL FEES.

     Borrower agrees to pay all costs and expenses, including without limitation
attorneys' fees actually incurred by Lender in connection with the enforcement
of any obligation of Borrower under this Note.

     12.  SEVERABILITY.

     In case any term or any provision of this Note shall be invalid, illegal or
unenforceable, such provision shall be severable from the rest of this Note and
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

     13.  HEADINGS.

     Headings used in this Note are inserted for convenience only and shall not
be deemed to constitute a part hereof.

                                      -5-

<PAGE>

     14.  GOVERNING LAW.

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

                                   Borrower:

                                   OBAGI MEDICAL PRODUCTS, INC.

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

                                       Name:
                                            ------------------------------------

                                       Title:
                                             -----------------------------------

     Payment of this Note is subordinated to the payment of all the obligations
of the maker hereof to Imperial Bank pursuant to the terms of a Subordination
Agreement dated June 7, 1999, as amended through the date of this Note.

                                      -6-

<PAGE>

                                    EXHIBIT C

                    PROMISSORY NOTE PAYABLE TO MARON NU-TECH

<PAGE>

                                 PROMISSORY NOTE

$[***]                                            Dated: as of _________, 2000

     1.   PRINCIPAL.

     FOR VALUE RECEIVED, the undersigned, OBAGI MEDICAL PRODUCTS, INC.,
("Borrower"), hereby promises to pay to the order of MARON NU-TECH, INC.
("Lender") the principal sum of [***] United States Dollars and No Cents
(U.S.$[***]) (the "Loan") with interest from the date of this Note on the
unpaid principal until paid at the rate of [***] percent ([***]%) per annum
rate through and including [***] and at [***] ($[***]) per annum thereafter.

     2.   PAYMENT, MATURITY DATE.

     Borrower shall make principal payments (plus all accrued but then unpaid
interest on the Loan), on the dates and in the amounts indicated below:

[***]                   $[***]                [***]                  $[***]
[***]                   $[***]                [***]                  $[***]

     Unless accelerated pursuant to the terms of this Note, the unpaid principal
balance of this Note, together with all unpaid interest accrued thereon, and all
other amounts payable by Borrower under the terms of this Note shall be due and
payable on the third anniversary date of this Note (the "Maturity Date").

     If any payment of principal or interest to be made by Borrower shall become
due on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day and such extension of time shall be included in
computing any interest with respect to such payment. "Business Day" shall mean
any Monday, Tuesday, Wednesday, Thursday or Friday on which banks are open for
business in Los Angeles, California.

     All interest due hereunder shall be computed on the basis of a year of 365
days for the actual number of days elapsed.

     Except as provided in the immediately following paragraph, all payments
received by Lender under this Note shall be credited first to any charges or
other expenses for which Lender is entitled to payment hereunder, next to
accrued but unpaid interest, and third to unpaid principal.

                                      -1-

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

     3.   MANNER OF PAYMENT.

     Principal and interest on the Loan, and all other amounts payable
hereunder, is payable in lawful currency of the United States of America in
immediately available funds at Lender's address of 9025 Wilshire Boulevard,
Suite 302, Beverly Hills, California 90211, payable to Maron Nu-Tech, Inc., or
such other address as Lender may designate in writing to Borrower.

     4.   EVENTS OF DEFAULT/REMEDIES.

          a.   EVENTS OF DEFAULT. Any of the following events shall constitute
an Event of Default:

               (1)  breach by Borrower of any of Borrower's obligations or
covenants under this Note; provided that Borrower shall have ten (10) days from
the date of any failure to perform any of its obligations or covenants under
this Note not involving the payment of money to Lender, within which to cure
said failure; or

               (2)  Borrower (A) becomes insolvent or admits in writing
Borrower's inability to pay Borrower's debts as they mature, (B) makes any
assignment for the benefit of creditors, or (C) applies for or consents to the
appointment of a receiver or trustee for Borrower or for a substantial part of
Borrower's property or business, or a receiver or trustee otherwise is appointed
and is not discharged within thirty (30) days after such appointment; or

               (3)  any of Borrower's representations or warranties made herein
or in any statement or certificate at any time given by Borrower pursuant hereto
or in connection herewith is false or misleading in any material respect and has
not been cured within ten (10) days after notice of such breach by Lender to
Borrower; or

               (4)  any bankruptcy, insolvency, reorganization or liquidation
proceeding or other proceeding for relief under any bankruptcy law or any law
for the relief of debtors is instituted by or against Borrower; or

               (5)  any money judgment, writ or warrant of attachment, or
similar process (singly or, if more than one, cumulatively in excess of
$100,000) is entered or filed against Borrower or any of the assets of Borrower
and (A) remains unvacated, unbonded, unstayed, undismissed or undischarged for a
period of thirty (30) days or in any event later than five (5) days before the
date of any proposed sale thereunder, or (B) Borrower has not appealed the same
in good faith to Lender's satisfaction; or

               (6)  the condition, financial or otherwise, of the Borrower
suffers any material adverse change, in the reasonable opinion of the Lender and
has not been cured within ten (10) days after notice of such breach by Lender to
Borrower; or

               (7)  more than fifty percent (50%) of the equity interests in
Borrower is held by a person or persons other than the holders of such equity
interests on the date of this Note, except that no Event of Default under this
clause shall occur (i) if Borrower is, at the time of such change in equity
interest, a publicly traded company or (ii) if Mandarin Partners, LLC,

                                      -2-
<PAGE>

which holds in excess of seventy percent (70%) of the outstanding shares of
Borrower on the date of this Note, distributes shares of Borrower on a pro rata
basis to each of its members (provided that such members are the same on the
date of such distribution as on the date of this Note); or

               (8)  more than fifty percent (50%) of the equity interests in
Borrower or in the assets of Borrower is transferred or sold in a single
transaction, except that Company may, one time only, transfer without it
constituting an Event of Default its duties and obligations under this Note to a
Delaware corporation whose assets and shareholders are identical to those of
Company prior to such transfer; provided that such Delaware corporation shall
execute and deliver appropriate allonges to this Note necessary and appropriate
to achieve the assumption of Company's duties and obligations under this Note.

          b.   REMEDIES. Upon the occurrence and during the continuance of an
Event of Default described in Subsections 4(a)(2) or 4(a)(4) above, all
indebtedness under this Note shall automatically be immediately due and payable.
In addition, Lender, at its option, and without notice to Borrower, may take one
or more of the actions described below. Upon the occurrence and during the
continuance of any other Event of Default, Lender at its option and, unless
otherwise specified below, without notice to Borrower, may do any one or more of
the following:

               (1)  declare all indebtedness under this Note immediately due and
payable and credit any sums received thereafter in such manner as it elects upon
such indebtedness; provided, however, that such application of sums so received
shall not serve to waive or cure any default existing under this Note nor to
invalidate any notice of default or any act done pursuant to such notice and
shall not prejudice any rights of Lender; and

               (2)  exercise any or all rights provided or permitted by law or
granted pursuant to this Note in such order and in such manner as Lender may, in
its sole judgment, determine.

     c.   NO WAIVER OF REMEDIES. No waiver of any breach of or default under any
provision of this Note shall constitute or be construed as a waiver by Lender of
any subsequent breach of or default under that or any other provision of this
Note.

     d.   REMEDIES NOT EXCLUSIVE. No remedy herein conferred upon Lender is
intended to be exclusive of any other remedy herein or in any other agreement
between the parties hereto or by law provided or permitted, but each shall be
cumulative and shall be in addition to every other remedy given hereunder or now
or hereafter existing at law, in equity or by statute.

     5.   REPRESENTATIONS AND WARRANTIES OF BORROWER.

     Borrower hereby makes the following representations and warranties, which
shall be deemed to be continuing representations and warranties until payment in
full of all indebtedness of Borrower to Lender arising pursuant to this Note.

     a.   NO CONFLICT. The execution, delivery and performance of this Note are
not in contravention of or in conflict with any agreement, indenture or
undertaking to which Borrower

                                      -3-
<PAGE>

is a party or by which Borrower or any of Borrower's assets or property may be
bound or affected and do not cause any security interest, lien or other
encumbrance to be created or imposed upon any such property by reason thereof.

     b.   NO DEFAULT. There has occurred and is continuing no Event of Default
or any event which with the giving of notice or the lapse of time, or both,
would constitute an Event of Default.

     c.   LITIGATION. There is no action, suit or proceeding pending or, to the
best of Borrower's knowledge and belief, threatened against or affecting
Borrower which could impair the validity, effectiveness or enforceability of, or
impair Borrower's ability to perform its obligations under this Note, whether
said actions, suits or proceedings are at law or in equity or before or by any
governmental authority.

     6.   DEFAULT RATE.

     Any amounts not paid when due shall thereafter bear interest at the rate of
eight percent (8.0%) per annum.

     7.   WAIVER.

     Borrower hereby waives any right of offset Borrower may now or hereafter
have against Lender (without limiting the foregoing, Borrower waives any offset
it might have against Lender arising out of any agreements or any commercial
relationship between Borrower and Lender), and Borrower hereby also waives
diligence, presentment, protest and demand, notice of protest, dishonor and
nonpayment of this Note and expressly agrees that, without in any way affecting
the liability of Borrower hereunder, Lender may extend any maturity date or the
time for payment of any installment due hereunder, accept additional security,
release any party liable hereunder and release any security now or hereafter
securing this Note. Borrower further waives, to the full extent permitted by
law, the right to plead any and all statutes of limitations as a defense to any
demand on this Note, or on any deed of trust, security agreement, lease
assignment, guaranty or other agreement now or hereafter securing this Note.

     8.   RIGHT OF SETOFF.

     Upon and after the occurrence of any Event of Default, Lender is hereby
authorized by Borrower, at any time and from time to time, without notice to
Borrower, to set off against, and to appropriate and apply to the payment of,
the obligations and liabilities of Borrower hereunder (whether matured or
unmatured), any accounts maintained with it by Borrower and/or any and all
amounts owing by Lender to Borrower (whether matured or unmatured, and however
evidenced).

     9.   JURISDICTION.

     For any action related to the judicial enforcement or interpretation of
this Note, Borrower expressly submits to the nonexclusive jurisdiction of the
state or federal courts located in the County of Los Angeles in the State of
California at the election of Lender, which election may be made from time to
time. Borrower further irrevocably consents to the service of process out of

                                      -4-
<PAGE>

any of the aforementioned courts in any such action or proceeding by mailing of
copies thereof by registered or certified mail, postage prepaid, to Borrower at
Borrower's address for notice furnished to Lender, such service to become
effective five (5) days after such mailing. Nothing herein shall affect the
right to serve process in any other manner permitted by law or the right of
Lender to bring legal action or proceedings in any other jurisdiction.

     10.  WAIVER OF JURY TRIAL.

     BORROWER HEREBY AGREES TO WAIVE ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS NOTE, OR ANY DEALINGS RELATING
TO THE SUBJECT MATTER OF THIS NOTE AND THE LENDER/BORROWER RELATIONSHIP THAT IS
BEING ESTABLISHED. The scope of this waiver is intended to be all-encompassing
of any and all disputes that may be filed in any court and that relate to the
subject matter of this transaction, including without limitation, contract
claims, tort claims, breach of duty claims, and all other common law and
statutory claims. Borrower acknowledges that this waiver is a material
inducement to Lender to make the Loan and that Lender has already relied on this
waiver in entering into this transaction, and that Lender will continue to rely
on this waiver in its related future dealings. Borrower further warrants and
represents that it has reviewed this waiver with its legal counsel, and that it
knowingly and voluntarily waives its jury trial rights following consultation
with legal counsel. THIS WAIVER IS IRREVOCABLE, AND THE WAIVER SHALL APPLY TO
ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS NOTE,
OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING THERETO. IN THE EVENT OF
LITIGATION, THIS NOTE MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

     11.  LEGAL FEES.

     Borrower agrees to pay all costs and expenses, including without limitation
attorneys' fees actually incurred by Lender in connection with the enforcement
of any obligation of Borrower under this Note.

     12.  SEVERABILITY.

     In case any term or any provision of this Note shall be invalid, illegal or
unenforceable, such provision shall be severable from the rest of this Note and
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

     13.  HEADINGS.

     Headings used in this Note are inserted for convenience only and shall not
be deemed to constitute a part hereof.

                                      -5-
<PAGE>

     14.  GOVERNING LAW.

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

                                   Borrower:

                                   OBAGI MEDICAL PRODUCTS, INC.

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

                                      Name:
                                           -------------------------------------

                                      Title:

     Payment of this Note is subordinated to the payment of all the obligations
of the maker hereof to Imperial Bank pursuant to the terms of a Subordination
Agreement dated June 7, 1999, as amended through the date of this Note.

                                      -6-

<PAGE>

                                    EXHIBIT D

                         AMENDED AND RESTATED ADDENDUM

                           TO SUBORDINATION AGREEMENT

This Amended and Restated Addendum is made and entered into as of ______, 2000
between Maron Nu-Tech, Inc. and Kenneth H. Kim (jointly and severally, "We" or
"Subordinated Creditor") and Imperial Bank ("Bank" and "You") and Obagi Medical
Products, INc. ("Borrower"). This Amended and Restated Addendum amends and
supplements the Subordination Agreement (Payment Authorized)("Subordination
Agreement") dated June 7, 1999 executed by Maron Nu-Tech, Inc. in favor of Bank
and accepted by the Borrower and amends and restates that Addendum to
Subordination Agreement (Payment Authorized) dated June 7, 1999 executied by
Maron Nu-Tech, Inc. in favor of BAnk and accepted by the Borrower. In the case
of any inconsistency between the terms herein and the terms of teh Subordination
Agreement, the terms herein shallin all cases govern and control. All
capitalized terms herein, unless otherwise defined herein shall have the meaning
set forth in the Subordination Agreement.

1.   Notwithstanding any other provisions of the Subordination Agreement, the
     claims of the Borrower owing to the Subordinated Creditor ("Subordinated
     Claims") which are subordianted to the claims of the Borrower to the Bank
     ("Senior Claims") pursuant to the Suboridation Agreement are only those
     relating to that Promissory Note executed by the Borrower in favor of Maron
     Nu-Tech, Inc. Dated June 7, 1999 in the prinicpal amount of $[***], that
     Promissory NOte executed by the Borrower in favor of Maron Nu-Tech, Inc. of
     even date herewith in the principal amount of $[***], and that Promissory
     Note executed by teh Borrower in favor of Kenneth H. Kim of even date
     herewith in the prinicpal amount of $[***]. Wherever the term "Claims"
     is used in the Subordination Agreement relating to the claims of the
     Borrower to the Subordinated Creditor, it shall mean the Subordinated
     Claims.

2.   Notwithstanding any other provisions in the Subordiantion Agreement, if the
     Subordinated Creditor shall notify the Bank that a payment default has
     occurred in the Subordinated Claims, after a period of 180 days following
     such notice the Subordinated Creditor may accept or receive any payments of
     any kin of, or on account of, the Subordinated Claims and may take any
     action to enforce the Subordinated Claims.

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

3. Because the Subordinated Creditors are taking security interest in the assets
of Borrower to secure their claims under the Notes dated of even date herewith,
the last paragraph on page 1 of the Subordination Agreement is not applicable
and is hereby deleted.

                                   MARON NU-TECH, INC.

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

                                   Its:
                                      ------------------------------------------

                                   OBAGI MEDICAL PRODUCTS, INC.

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

                                   Its:
                                      ------------------------------------------

                                   ---------------------------------------------
                                   Kenneth H. Kim

                                   IMPERIAL BANK

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

                                   Its:
                                      ------------------------------------------

<PAGE>

                                    EXHIBIT E

                               WAIVER AND RELEASE

For good and valuable consideration, the receipt of which is hereby
acknowledged, in the form of the change of ownership of the undersigned, the
undersigned, on behalf of itself and its shareholders, parent or sister
companies, employees, representatives, agents, insurers, attorneys,
administrators, heirs, beneficiaries, executors, trustees, principals,
predecessors, successors, assignors, assignees, past and present, hereby fully
releases and discharges Maron Nu- Tech, Kenneth Kim and their respective
employees, officers, agents, representatives, attorneys, administrators, heirs,
insurers, corporations in which either Maron Nu-Tech or Kim holds any interest,
and each of their respective predecessors, successors, assignors and assignees,
past and present, with respect to any and all claims, actions, and causes of
action, of any kind or nature whatsoever, in law, equity, or otherwise, whether
fixed or contingent, whether now known or unknown whether suspected or
unsuspected, and whether concealed or hidden, which now exist or which may exist
hereafter, relating to, or arising out of, any act, transaction, agreement
occurrence, event, error, or omission by any of them prior to the effective date
of this Agreement.

                                   DERMA TECH, INC.

                                   By:
                                     ----------------------------------------
                                   Name:
                                   Title:

<PAGE>

                                    EXHIBIT E

                               WAIVER AND RELEASE

For good and valuable consideration, the receipt of which is hereby
acknowledged, in the form of the change of ownership of the undersigned, the
undersigned, on behalf of itself and its shareholders, parent or sister
companies, employees, representatives, agents, insurers, attorneys,
administrators, heirs, beneficiaries, executors, trustees, principals,
predecessors, successors, assignors, assignees, past and present, hereby fully
releases and discharges Maron Nu- Tech, Kenneth Kim and their respective
employees, officers, agents, representatives, attorneys, administrators, heirs,
insurers, corporations in which either Maron Nu-Tech or Kim holds any interest,
and each of their respective predecessors, successors, assignors and assignees,
past and present, with respect to any and all claims, actions, and causes of
action, of any kind or nature whatsoever, in law, equity, or otherwise, whether
fixed or contingent, whether now known or unknown whether suspected or
unsuspected, and whether concealed or hidden, which now exist or which may exist
hereafter, relating to, or arising out of, any act, transaction, agreement
occurrence, event, error, or omission by any of them prior to the effective date
of this Agreement.

                                   OBAGI SINGAPORE PTE LTD.

                                   By:
                                     -------------------------------------------
                                     Name:
                                     Title:

<PAGE>

                                    EXHIBIT E

                               WAIVER AND RELEASE

For good and valuable consideration, the receipt of which is hereby
acknowledged, in the form of the change of ownership of the undersigned, the
undersigned, on behalf of itself and its shareholders, parent or sister
companies, employees, representatives, agents, insurers, attorneys,
administrators, heirs, beneficiaries, executors, trustees, principals,
predecessors, successors, assignors, assignees, past and present, hereby fully
releases and discharges Maron Nu- Tech, Kenneth Kim and their respective
employees, officers, agents, representatives, attorneys, administrators, heirs,
insurers, corporations in which either Maron Nu-Tech or Kim holds any interest,
and each of their respective predecessors, successors, assignors and assignees,
past and present, with respect to any and all claims, actions, and causes of
action, of any kind or nature whatsoever, in law, equity, or otherwise, whether
fixed or contingent, whether now known or unknown whether suspected or
unsuspected, and whether concealed or hidden, which now exist or which may exist
hereafter, relating to, or arising out of, any act, transaction, agreement
occurrence, event, error, or omission by any of them prior to the effective date
of this Agreement.

                                   OBAGI ASIA PTE LTD.

                                   By:
                                     -------------------------------------------
                                     Name:
                                     Title:

<PAGE>

                                    EXHIBIT F

                            DESCRIPTION OF COLLATERAL

All of the following described property and any and all proceeds and products
thereof, whether now owned or hereafter existing, and in which Obagi Medical
Products, Inc. now has or hereafter has any right, title or interest:

          (a)  all equipment, wherever located, and all additions and accessions
thereto and replacements therefor,

          (b)  all inventory,

          (c)  all accounts, documents, contract rights, chattel paper,
instruments, and general intangibles,

          (d)  all rights, agreements, contracts and assignments of Obagi
Medical Products, Inc.,

          (e)  all machinery, furniture and fixtures,

          (f)  all patent applications, trademarks and tradenames, rights and
interests in copyrights, trade secrets,

          (g)  all deposit accounts and all cash,

          (h)  all goodwill,

          (i)  all ledger sheets, books, files, and other documents and records
and all equipment containing such ledger sheets, files, documents and records,
and

          (j)  all proceeds of any of the foregoing.

<PAGE>

                                    EXHIBIT G
--------------------------------------------------------------------------------

                            DERMA TECH BALANCE SHEET

<PAGE>

                                    EXHIBIT H

                               SUB-DISTRIBUTORS *

INDONESIA:                        Pt. Obagi Indonesia
                                  Wisma Danamon Aetna Life, 14/F
                                  Jl. Jend, Sudirman Kav 45-46
                                  Jakarta 12930, Indonesia
                                  Tel: No. (62-21) 577-1558
                                  Fax No. (62-21) 577-1559
                                  Contact Person:  Hendrik Chandra

KOREA:                            Maron Cosmetic Co., Ltd. *
                                  85-2 Chungdam-dong, Kangnam-ku
                                  Seoul, Korea
                                  Tel. No. (822) 518-2555
                                  Fax No. (822) 518-2554
                                  Contact Person:  Jung In Lee and Jong Hwa Ahn

MALAYSIA:                         Obagi Malaysia
                                  Shop Lot 2-1-7, Block 2
                                  1st Floor, Api-Api Centre
                                  Jalan Centre Point, Kota Kinabalu 88000
                                  Sabah, Malaysia
                                  Tel. No. (60-88) 261-013
                                  Fax No. (60-88) 266-186
                                  Contact Person:  Fan Yong Thau

SINGAPORE:                        Obagi (S) Pte Ltd.
                                  442 Orchard Road
                                  #02-29/30/32/33
                                  Orchard Hotel Shopping Arcade
                                  Singapore 238879
                                  Tel. No. (65) 738-2998
                                  Fax No. (65) 738-6628
                                  Contact Person:  Rudi Koh

* (Maron Cosmetic Co., Ltd. is a direct distributor for which Maron acts as
handling agent)
<PAGE>

                                 SCHEDULE 1.1(d)

                                 OTHER INTERESTS

                                Derma Tech, Inc.

                            Obagi Singapore Pte. Ltd.

                              Obagi Asia Pte. Ltd.

<PAGE>

                                 SCHEDULE 2.1(g)

                                  CLAIMS BY KIM

                                      None.

<PAGE>

                                 SCHEDULE 2.1(k)

                                 MARON LICENSES

                                      None.

<PAGE>

                                 SCHEDULE 2.2(d)

                       10% OR MORE SHAREHOLDERS OF COMPANY

                     Zein Obagi and Samar Obagi Family Trust

                             Mandarin Partners, LLC

<PAGE>

                                KENNETH H. KIM
                                   PRESIDENT
                              MARON NU-TECH, INC.
                            9025 WILSHIRE BOULEVARD
                                   SUITE 302
                        BEVERLY HILLS, CALIFORNIA 90211

                              December 18, 2000

Mr. Philip J. Rose
President and CEO
Obagi Medical Products, Inc.
310 Golden Shore, First Floor
Long Beach, California 90802

         RE:  Master Separation Agreement

Dear Phil:

This letter will confirm our agreement, at your request, to amend Section 1.1
of the Master Separation Agreement, to extend the Closing Date from December
18, 2000 to December 21, 2000, by mutual agreement. This letter will also
confirm that I will date the Stock Assignment as of January 2, 2001. Your
countersignature below will confirm this agreement.

Very truly yours,

/s/ Kenneth H. Kim

KENNETH H. KIM, individually and as President of Maron Nu-Tech, Inc.

The foregoing is agreed, without prejudice to the undersigned's position in
the dispute over the payment schedule set forth in the Master Separation
Agreement and the Promissory Notes which are exhibits thereto:

Obagi Medical Products, Inc.

By: /s/ Philip J. Rose
----------------------------
        Philip J. Rose
        President and CEO

<PAGE>

                                KENNETH H. KIM
                                   PRESIDENT
                              MARON NU-TECH, INC.
                            9025 WILSHIRE BOULEVARD
                                   SUITE 302
                        BEVERLY HILLS, CALIFORNIA 90211

                              December 22, 2000

Mr. Philip J. Rose
President and CEO
Obagi Medical Products, Inc.
310 Golden Shore, First Floor
Long Beach, California 90802

         RE:  Master Separation Agreement

Dear Phil:

This letter will confirm our agreement to amend the Master Separation
Agreement and the note payable to Mr. Kim under the Master Separation
Agreement ("Kim Note") to change the payment schedule on payments to be made
to Kenneth H. Kim. The principal payment which would otherwise be due to be
paid to Kenneth H. Kim on [***] in the amount of $[***] shall instead be
payable in equal parts on [***] and [***] (so that the principal payment due
on [***] shall now total $[***] and the principal payment due on [***] shall
be $[***]). The first interest payment on the Kim Note shall now be due on
[***].

My attorneys will be authorized to revise the pages of the Master Separation
Agreement and Kim Note necessary to reflect this amendment, and those revised
pages shall be inserted into the final Master Separation Agreement and Kim
Note.

Your countersignature below will confirm your agreement to this amendment.

Very truly yours,

/s/ Kenneth H. Kim

KENNETH H. KIM, individually and as President of Maron Nu-Tech, Inc.

The foregoing is agreed:

Obagi Medical Products, Inc.

By: /s/ Philip J. Rose
----------------------------
        Philip J. Rose
        President and CEO

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

Company agrees to pay Kim the sum of [***] United States Dollars ($[***]),
payable as follows:

                    (i) A cash payment of [***] United States Dollars ($[***])
which has previously been paid to Kim, receipt of which is hereby acknowledged;
and

                    (ii) A cash payment of [***] United States Dollars
($[***]) at the Closing.

                    (iii) The balance of [***] United States Dollars ($[***])
according to the following payment schedule:

[***]                   $[***]                [***]                  $[***]
[***]                   $[***]                [***]                  $[***]

               (b) In consideration  of all of the foregoing  provisions and
the terms and  conditions  hereof,  effective at the Closing  Company  agrees
to pay Maron  the  sum of  [***]  United  States  Dollars  ($[***]) according
to the following payment schedule:

[***]                   $[***]                [***]                  $[***]
[***]                   $[***]                [***]                  $[***]

     1.4 INTEREST.  In addition to the payments pursuant to Section 1.3,
Company agrees to pay interest to Kim and to Maron on the outstanding
principal balance during the period from the Closing Date through [***].
Interest shall be calculated  based on a 365-day year at the time of each
principal  payment on the outstanding principal balance on the day before the
principal payment is due and shall be fixed for the  period at the rate of
[***] percent  ([***]%) per  annum. [***]:

          (a)  [***]; and

          (b)  [***]

     1.5 PROMISSORY NOTES. At the Closing,  Company shall execute and deliver
to the respective  payees thereof two  subordinated  promissory notes (the
"Notes") for the  aggregate  outstanding  balance of [***] United States
Dollars ($[***]) payable under Section 1.3 above, payable to Kim and Maron,
respectively,  in the forms attached  hereto as of EXHIBIT B and EXHIBIT C,
respectively.  Maron and Kim hereby agree that the Notes and related lien
shall be subordinate to the loan and related lien of Imperial Bank (or such
other  commercial  lender as may succeed  Imperial Bank as commercial  lender
to Company ("Successor Lender")) (such senior loan or loans, however, not to
exceed in any event the principal amount of

                                       -3-

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

                                 PROMISSORY NOTE

$[***]                                          Dated: as of _________, 2000

     1.   PRINCIPAL.

     FOR  VALUE  RECEIVED,  the  undersigned,   OBAGI  MEDICAL  PRODUCTS,
INC., ("Borrower"),  hereby  promises to pay to the order of KENNETH H. KIM
("Lender") the principal sum of [***] United States Dollars and No Cents
(U.S.$[***]) (the "Loan") with interest from the date of this Note on the
unpaid principal until paid at the rate of [***] percent per annum.

     2.   PAYMENT, MATURITY DATE.

     Borrower  shall make  principal  payments (plus all accrued but then unpaid
interest on the Loan), on the dates and in the amounts indicated below:

[***]                   $[***]                [***]                  $[***]
[***]                   $[***]                [***]                  $[***]

     Unless accelerated pursuant to the terms of this Note, the unpaid principal
balance of this Note, together with all unpaid interest accrued thereon, and all
other amounts  payable by Borrower under the terms of this Note shall be due and
payable on [***] (the "Maturity Date").

     If any payment of principal or interest to be made by Borrower shall become
due on a day other than a Business  Day,  such payment shall be made on the next
succeeding  Business  Day and  such  extension  of time  shall  be  included  in
computing any interest with respect to such payment.  "Business  Day" shall mean
any Monday, Tuesday,  Wednesday,  Thursday or Friday on which banks are open for
business in Los Angeles, California.

     All interest due hereunder  shall be computed on the basis of a year of 365
days for the actual number of days elapsed.

     Except as provided in the  immediately  following  paragraph,  all payments
received  by Lender  under this Note shall be  credited  first to any charges or
other  expenses  for which  Lender is  entitled  to payment  hereunder,  next to
accrued but unpaid interest, and third to unpaid principal.

                                       -1-

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

                                KENNETH H. KIM
                                   PRESIDENT
                              MARON NU-TECH, INC.
                            9025 WILSHIRE BOULEVARD
                                   SUITE 302
                        BEVERLY HILLS, CALIFORNIA 90211

                              December 22, 2000

Mr. Philip J. Rose
President and CEO
Obagi Medical Products, Inc.
310 Golden Shore, First Floor
Long Beach, California 90802

         RE:  Master Separation Agreement

Dear Phil:

This letter will confirm our agreement to amend further the Master Separation
Agreement by substituting two forms of Subordination Agreement for the
Amended and Restated Addendum to Subordination Agreement, Exhibit D to the
Master Separation Agreement.

Exhibit D to the Master Separation Agreement therefore should read in its
entirety as in the pages attached to this letter amendment, and Section 1.5
of the Master Separation Agreement is hereby amended so that the phrase
"Amended and Restated Addendum to Subordination Agreement" in that Section
1.5 shall be amended and restated to read as "Subordination Agreements".

Your countersignature below will confirm your agreement to this amendment.

Very truly yours,

/s/ Kenneth H. Kim

KENNETH H. KIM, individually and as President of Maron Nu-Tech, Inc.

The foregoing is agreed:

Obagi Medical Products, Inc.

By:
----------------------------
        Philip J. Rose
        President and CEO

<PAGE>

                           SUBORDINATION AGREEMENT

The undersigned Subordinated Creditor is interested in the financial success
of OBAGI MEDICAL PRODUCTS, INC. ("Borrower"), and agrees that financial
accommodation from IMPERIAL BANK ("Bank") to Borrower is necessary, and
accordingly requests that Bank grant to or renew for Borrower such financial
accommodation as it may deem proper, and for the purpose of inducing Bank to
grant, renew or extend such financial accommodation, it is hereby severally
agreed as follows:

Notwithstanding any other provisions of this agreement, the claims of the
Borrower owing to the Subordinated Creditor ("Subordinated Claims") which are
subordinated to the claims of the Borrower to the Bank ("Senior Claims")
pursuant to this Subordination Agreement are only those relating to that
Promissory Note executed by Borrower in favor of Subordinated Creditor dated
December 22, 2000, in the principal amount of $[***]. Wherever the term
"claims" is used in the Subordination Agreement relating to the claims of the
Borrower to the Subordinated Creditor it shall mean the Subordinated Claims.

All claims of each of the undersigned against Borrower now or hereafter
existing, whether matured or not (subject to the maximum if specified below),
are and shall be at all times subordinate and subject to any and all claims
of Bank's part against Borrower now or hereafter existing, whether matured or
not, so long as any such claim on Bank's part against Borrower shall remain
unpaid, in whole or in part, and each of the undersigned agrees not to sue
upon, or collect, or to receive payment upon, by setoff or in any other
manner, any claim or claims on its part against Borrower now or hereafter
existing, nor to sell, assign, transfer, pledge, or give a security interest
in the same (except subject expressly to this Agreement), nor to enforce or
apply any security now or hereafter existing, nor to join in any petition in
bankruptcy or any assignment for the benefit of creditors, or any creditors
agreement, nor take any lien or security on any of Borrower's property, real
or personal, nor to incur any obligation to nor receive any loans, advances
or gifts from Borrower, so long as any such claim on Bank's part against
Borrower shall exist or so long as Bank is committed or otherwise obligated
to make any loans to, or grant any credit to, Borrower.

All claims on Bank's part against Borrower now or hereafter existing shall be
first paid by Borrower before any payment shall be made by Borrower to any of
the undersigned. Borrower may make regularly scheduled payment(s) on the
claims so long as no default exists on its obligations to Bank. Said priority
of payment shall apply during the ordinary course of Borrower's business and
in case of any assignment by Borrower for the benefit of Borrower's
creditors, and in case of any bankruptcy proceedings instituted by or against
Borrower, and in case of the appointment of any receiver for Borrower or
Borrower's business or assets, and in case of any dissolution or other
winding up of the affairs of Borrower, or of Borrower's business, and in all
such cases respectively, the officers of Borrower and any assignee, trustee
in bankruptcy, receiver, and other person or persons in charge, are hereby
directed to pay to Bank the full amount of Bank's claims against Borrower
before persons in charge, are hereby directed to pay to Bank the full amount
of Bank's claims against Borrower before making any payment to any of the
undersigned, and so far as may be necessary for that purpose, each of the
undersigned hereby transfers and assigns to Bank all of its rights to any
payment or distribution which might otherwise be coming to it. Bank is hereby
irrevocably constituted and appointed the attorney-in-fact of each of the
undersigned to file any and all proofs of claim and any other documents and
take all other action, either in Bank's name, or in the name of the
undersigned, or any of them, which in Bank's opinion is necessary or
desirable to enable Bank to obtain all such payments.

                                 Page 1 of 3

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

The undersigned agrees that if part or all of any claim of the undersigned
shall be evidenced by a promissory note or other instrument, the undersigned
shall cause to be placed thereon a legend stating that the payment thereof is
subordinate to the payment of all claims on Bank's part against Borrower
pursuant to the terms of this Subordination Agreement, and each of the
undersigned agrees to mark all books of account in such manner to indicate
that payment thereof is subordinated pursuant to the terms of this
Subordination Agreement.

This Agreement shall be and constitute full and sufficient ground to entitle
Bank to be and become a party to any proceedings at law, or otherwise,
initiated by Bank or by any other party, in or by which Bank may deem it
proper to protect its interest hereunder, and the party so violating this
Agreement shall be liable to Bank for all loss and damages sustained by it
by reason of such breach, including attorney's fees to Bank's attorney in any
such legal action.

If the undersigned, or any of them, shall receive any payment or property in
violation of this Agreement, such payment or property shall be received by
such undersigned in trust for Bank and forthwith will be delivered and
transferred to Bank.

This Agreement shall be continuing in effect, it shall not be canceled or
otherwise rendered ineffective by the payment or discharge at any time of all
of Borrower's obligations to Bank, and it shall apply to any and all
financial accommodations subsequently granted, renewed or extended by Bank
for Borrower, unless the undersigned shall deliver to Bank a written notice
of revocation as to future transactions, at a time when Borrower is no longer
obligated by Bank in any way, and while Bank is not committed or otherwise
obligated to make any loans to, or grant any credit to, Borrower.

Notwithstanding any other provisions of this Subordination Agreement, if the
Subordinated Creditor shall notify the Bank that a payment default has
occurred in the Subordinated Claims, after a period of 180 days following
such date the Subordinated Creditor may take any lawful action to enforce the
Subordinated Claims, it being understood and agreed that payment of the
Subordinated Claims to the undersigned may not occur prior to the payment in
full of all obligations owed from Borrower to Bank, to Bank's satisfaction.

Notwithstanding any other provision of this Agreement, Subordinated Creditor
may secure its Subordinated Claims with a subordinated security interest in
certain assets of Borrower. Subordinated Creditor hereby subordinates such
security interest(s) whether now existing or hereafter arising, to the
security interest(s) of Bank, whether now existing or hereafter arising, with
respect to any and all assets of Borrower. Except as herein otherwise
provided, the priorities between the parties shall be determined in
accordance with the provisions of the Uniform Commercial Code. The
Subordinated Creditor may not enforce its security interest in Borrower's
assets, or commence any action to enforce such security interest until the
earlier of (i) repayment in full of all Senior Claims to the satisfaction of
the Bank, or (ii) upon the expiration of the 180 day period mentioned above,
provided that any proceeds from the Borrower's assets must first be applied
to repayment of the Senior Claim prior to applying any such proceeds to the
Subordinated Claim. Upon receipt of any proceeds by the Subordinated Creditor
from the exercise of its security interest, such payment or property shall be
received by such undersigned in trust for Bank and forthwith will be
delivered and transferred to Bank until payment in full of the Senior Claim
to the satisfaction of bank.

                                 Page 2 of 3

Signature page follows.

<PAGE>

The undersigned hereby acknowledges this Subordination Agreement and agrees
to be bound by its provisions.

                                       SUBORDINATED CREDITOR:

Dated: December 22, 2000               /s/ KENNETH H. KIM
-----------------------------          -----------------------------
                                       Mr. Kenneth H. Kim

              ACCEPTANCE OF SUBORDINATION AGREEMENT BY BORROWER

The undersigned, being the Borrower named in the foregoing Subordination
Agreement, hereby accepts and consents thereto and agrees to be bound by all
of the provisions thereof and to recognize all priorities and other rights
granted thereby to IMPERIAL BANK, and to pay said Bank in accordance
therewith.

                                       Obagi Medical Products, Inc.

Dated:                                 By:
       ----------------------              -------------------------

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

                                 Page 3 of 3
<PAGE>
                           SUBORDINATION AGREEMENT

The undersigned Subordinated Creditor is interested in the financial success
of OBAGI MEDICAL PRODUCTS, INC. ("Borrower"), and agrees that financial
accommodation from IMPERIAL BANK ("Bank") to Borrower is necessary, and
accordingly requests that Bank grant to or renew for Borrower such financial
accommodation as it may deem proper, and for the purpose of inducing Bank to
grant, renew or extend such financial accommodation, it is hereby severally
agreed as follows:

Notwithstanding any other provisions of this agreement, the claims of the
Borrower owing to the Subordinated Creditor ("Subordinated Claims") which are
subordinated to the claims of the Borrower to the Bank ("Senior Claims")
pursuant to this Subordination Agreement are only those relating to that
Promissory Note executed by Borrower in favor of Subordinated Creditor dated
December 22, 2000, in the principal amount of $[***]. Wherever the term
"claims" is used in the Subordination Agreement relating to the claims of the
Borrower to the Subordinated Creditor it shall mean the Subordinated Claims.

All claims of each of the undersigned against Borrower now or hereafter
existing, whether matured or not (subject to the maximum if specified below),
are and shall be at all times subordinate and subject to any and all claims
on Bank's part against Borrower now or hereafter existing, whether matured or
not, so long as any such claim on Bank's part against Borrower shall remain
unpaid, in whole or in part, and each of the undersigned agrees not to sue
upon, or collect, or to receive payment upon, by setoff or in any other
manner, any claim or claims on its part against Borrower now or hereafter
existing, nor to sell, assign, transfer, pledge, or give a security interest
in the same (except subject expressly to this Agreement), nor to enforce or
apply any security now or hereafter existing, nor to join in any petition in
bankruptcy or any assignment for the benefit of creditors, or any creditors
agreement, nor take any lien or security on any of Borrower's property, real
or personal, nor to incur any obligation to nor receive any loans, advances
or gifts from Borrower, so long as any such claim on Bank's part against
Borrower shall exist or so long as Bank is committed or otherwise obligated
to make any loans to, or grant any credit to, Borrower.

All claims on Bank's part against Borrower now or hereafter existing shall be
first paid by Borrower before any payment shall be made by Borrower to any of
the undersigned. Borrower may make regularly scheduled payment(s) on the
claims so long as no default exists on its obligations to Bank. Said priority
of payment shall apply during the ordinary course of Borrower's business and
in case of any assignment by Borrower for the benefit of Borrower's
creditors, and in case of any bankruptcy proceedings instituted by or against
Borrower, and in case of the appointment of any receiver for Borrower or
Borrower's business or assets, and in case of any dissolution or other
winding up of the affairs of Borrower, or of Borrower's business, and in all
such cases respectively, the officers of Borrower and any assignee, trustee
in bankruptcy, receiver, and other person or persons in charge, are hereby
directed to pay to Bank the full amount of Bank's claims against Borrower
before persons in charge, are hereby directed to pay to Bank the full amount
of Bank's claims against Borrower before making any payment to any of the
undersigned, and so far as may be necessary for that purpose, each of the
undersigned hereby transfers and assigns to Bank all of its rights to any
payment or distribution which might otherwise be coming to it. Bank is hereby
irrevocably constituted and appointed the attorney-in-fact of each of the
undersigned to file any and all proofs of claim and any other documents and
take all other action, either in Bank's name, or in the name of the
undersigned, or any of them, which in Bank's opinion is necessary or
desirable to enable Bank to obtain all such payments.

                                 Page 1 of 3

[***] Material has been omitted pursuant to a request for confidential
      treatment and such material has been filed separately with the
      Securities and Exchange Commission.

<PAGE>

The undersigned agrees that if part or all of any claim of the undersigned
shall be evidenced by a promissory note or other instrument, the undersigned
shall cause to be placed thereon a legend stating that the payment thereof is
subordinate to the payment of all claims on Bank's part against Borrower
pursuant to the terms of this Subordination Agreement, and each of the
undersigned agrees to mark all books of account in such manner to indicate
that payment thereof is subordinated pursuant to the terms of this
Subordination Agreement.

This Agreement shall be and constitute full and sufficient ground to entitle
Bank to be and become a party to any proceedings at law, or otherwise,
initiated by Bank or by any other party, in or by which Bank may deem it
proper to protect its interest hereunder, and the party so violating this
Agreement shall be liable to Bank for all loss and damages sustained by it
by reason of such breach, including attorney's fees to Bank's attorney in any
such legal action.

If the undersigned, or any of them, shall receive any payment or property in
violation of this Agreement, such payment or property shall be received by
such undersigned in trust for Bank and forthwith will be delivered and
transferred to Bank.

This Agreement shall be continuing in effect, it shall not be canceled or
otherwise rendered ineffective by the payment or discharge at any time of all
of Borrower's obligations to Bank, and it shall apply to any and all
financial accommodations subsequently granted, renewed or extended by Bank
for Borrower, unless the undersigned shall deliver to Bank a written notice
of revocation as to future transactions, at a time when Borrower is no longer
obligated to Bank in any way, and while Bank is not committed or otherwise
obligated to make any loans to, or grant any credit to, Borrower.

Notwithstanding any other provisions of this Subordination Agreement, if the
Subordinated Creditor shall notify the Bank that a payment default has
occurred in the Subordinated Claims, after a period of 180 days following
such date the Subordinated Creditor may take any lawful action to enforce the
Subordinated Claims, it being understood and agreed that payment of the
Subordinated Claims to the undersigned may not occur prior to the payment in
full of all obligations owed from Borrower to Bank, to Bank's satisfaction.

Notwithstanding any other provision of this Agreement, Subordinated Creditor
may secure its Subordinated Claims with a subordinated security interest in
certain assets of Borrower. Subordinated Creditor hereby subordinates such
security interest(s) whether now existing or hereafter arising, to the
security interest(s) of Bank, whether now existing or hereafter arising, with
respect to any and all assets of Borrower. Except as herein otherwise
provided, the priorities between the parties shall be determined in
accordance with the provisions of the Uniform Commercial Code. The
Subordinated Creditor may not enforce its security interest in Borrower's
assets, or commence any action to enforce such security interest until the
earlier of (i) repayment in full of all Senior Claims to the satisfaction of
the Bank, or (ii) upon the expiration of the 180 day period mentioned above,
provided that any proceeds from the Borrower's assets must first be applied
to repayment of the Senior Claim prior to applying any such proceeds to the
Subordinated Claim. Upon receipt of any proceeds by the Subordinated Creditor
from the exercise of its security interest, such payment or property shall be
received by such undersigned in trust for Bank and forthwith will be
delivered and transferred to Bank until payment in full of the Senior Claim
to the satisfaction of bank.

                                 Page 2 of 3

Signature page follows.

<PAGE>

The undersigned hereby acknowledges this Subordination Agreement and agrees
to be bound by its provisions.

                                       SUBORDINATED CREDITOR:

                                       Maron Nu-Tech, Inc.

Dated: December 22, 2000               /s/ KENNETH H. KIM
-----------------------------          -----------------------------
                                       Kenneth H. Kim     President

              ACCEPTANCE OF SUBORDINATION AGREEMENT BY BORROWER

The undersigned, being the Borrower named in the foregoing Subordination
Agreement, hereby accepts and consents thereto and agrees to be bound by all
of the provisions thereof and to recognize all priorities and other rights
granted thereby to IMPERIAL BANK, and to pay said Bank in accordance
therewith.

                                       Obagi Medical Products, Inc.

Dated:                                 By:
       ----------------------              -------------------------

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

                                 Page 3 of 3

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