Document:

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                       DISTRIBUTION AND PURCHASE AGREEMENT

         THIS DISTRIBUTION AND PURCHASE AGREEMENT (the "Agreement") is made and
effective as of December 6, 2002 by and between BIOACCESS, INC., a Delaware
corporation with its principal place of business at 4000 Hudson Street,
Baltimore, MD 21224 (the "Company") and VALESC INC., a Delaware corporation with
its principal offices at 2300 Coit Road, Suite 300B, Plano, TX 75075 (the
"Distributor").

         In consideration of the mutual agreements and understandings set forth
herein, the parties hereby agree as follows:

1.       PURPOSE

         The purpose of this Agreement is to facilitate the promotion,
         distribution and sale of the Company's products (the "Products"), which
         are specifically identified on the list attached hereto as Appendix A.

2.       APPOINTMENT OF DISTRIBUTOR

         The Company hereby appoints Distributor as its exclusive distributor
         within the geographic area described on Appendix B attached hereto (the
         "Territory"). At any time during the term of this Agreement and upon
         written notice to the Company, Distributor may designate one of its
         subsidiaries as the Distributor for all purposes under this Agreement
         and may assign and transfer all of its rights and obligations hereunder
         to such subsidiary.

3.       PRODUCTS

         The Company may from time to time in its sole discretion, upon 30 days'
         written notice to Distributor, add items to the list of Products
         specified on Appendix A and/or remove items from the list. When the
         Company develops a next generation product for one or more of the
         Products, the next generation product shall be added promptly to
         Appendix A and become a Product hereunder.

4.       RESPONSIBILITIES OF DISTRIBUTOR

         Distributor shall have the following responsibilities:

         A.       Provide coverage of existing and potential customers within
                  the Territory on a regular basis consistent with good business
                  practice and use commercially reasonable efforts to promote
                  and distribute the Products in the Territory.

         B.       Employ sales personnel in connection with the promotion of the
                  Products who are qualified and suitably trained with respect
                  to the Products, to the reasonable satisfaction of Company;
                  provided that, nothing in this provision shall require
                  Distributor to employ additional or new sales representatives.

         C.       Cooperate with and assist the Company in promotional
                  campaigns; provided that

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                  the Company shall be responsible for the costs of such
                  campaigns, except for the costs of Distributor's personnel.

         D.       Distributor shall not promote, sell, or offer for sale within
                  the Territory during the term of this Agreement, either
                  directly or through its wholly owned subsidiaries, any goods
                  or articles that, in the Company's reasonable judgment,
                  compete with the Products. The Company represents that it has
                  reviewed the products currently being sold by the Distributor
                  and its subsidiaries as of the date of this Agreement and has
                  determined that such products are noncompetitive.

         E.       Upon request, submit periodic sales reports containing such
                  information as the Company may reasonably require for the
                  purpose of enabling the Company to be advised of sales
                  progress in the Territory. This information shall be provided
                  within 30 business days after the close of each quarterly
                  accounting period. The Company has reviewed and approved the
                  current reporting package generated by the Distributor, and
                  finds it to be sufficient.

         F.       Maintain lot tracing information and provide information to
                  the Company upon request.

         G.       Maintain adequate and balanced levels of Product inventory.

5.       RESPONSIBILITIES OF THE COMPANY

         The Company shall have the following responsibilities:

         A.       Maintain the quality level of the Products sold hereunder, so
                  that the Distributor can assure its customers that it will
                  deliver products of high quality.

         B.       Advertise and promote the Products within the Territory and
                  keep Distributor advised of these promotions.

         C.       Communicate with Distributor with respect to possible
                  availability of new products and price changes and policies.
                  All notices of price changes must be in writing to the
                  Distributor with a minimum of 90 days advance notice.

         D.       Support Distributor with (i) training with respect to the
                  Products, (ii) the provision of sales support materials and
                  (iii) field support by the Company's Sales Representatives.
                  Such support will be provided by the Sales Representatives and
                  other personnel from the Company promptly upon request by the
                  Distributor. If the Distributor feels that this support is not
                  satisfactory, Distributor will contact the Vice President of
                  Sales, or equivalent officer if there is no Vice President of
                  Sales, of the Company immediately. The Company shall provide,
                  prior to Distributor's first sale of the Products, initial
                  training concerning the Products for

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                  the sales representatives of Distributor at a location in
                  the Territory selected by Distributor.

         E.       Allow credit to Distributor on merchandise returned by
                  customers of Distributor in accordance with the Company's
                  Returned Goods Policy, as in effect from time to time;
                  provided, that returns must be approved by the Company in
                  advance and such approval will not be unreasonably withheld.
                  There will be no restocking charge for Products (in unopened
                  cartons) returned to the Company by the Distributor.

         F.       Respect all matters of a confidential nature and agree not to
                  divulge these matters to any other distributor.

         G.       Except for Excluded Sales (as hereinafter defined), the
                  Company shall not sell any Products directly to any customer
                  in the Territory without the approval of the Distributor,
                  which approval shall not unreasonably be withheld. The
                  Company shall not request such approval from Distributor
                  unless Distributor is unable or unwilling to sell the
                  Products to the customer in question. With respect to any
                  sale of Products by the Company in the Territory where
                  approval has been obtained from Distributor and except for
                  Excluded Sales, the Company will pay Distributor a
                  commission of 20% of the gross sale price (excluding taxes
                  and shipping costs) for such sale on the tenth day of the
                  month following such sale. "Excluded Sales" shall mean sales
                  of Products by the Company to any customer in the Territory
                  where the Products will not be used within the Territory
                  (e.g. national accounts with a billing address located
                  within the Territory; JITs - just in time warehousers
                  located within the Territory).

6.       TERMS OF AGREEMENT

         A.       This Agreement shall remain in effect for one year from the
                  date of delivery of the first products ordered by the
                  Distributor, and will be automatically renewed for terms of
                  one year unless terminated by either party upon 90 days
                  advance written notice before the end of any term.

         B.       The prices for the Products sold hereunder shall be
                  established in the Company's Distributor Price List, the
                  current form of which is attached hereto as Appendix D, and
                  are subject to change from time to time at the Company's
                  sole discretion upon 90 days' written notice, provided there
                  is a commensurate increase in the list price to the
                  customer. In the event of a price increase, the Company will
                  rebate to the Distributor the original price for all pricing
                  commitments to customers that were agreed to prior to the
                  increase; provided that, in order to obtain such a rebate,
                  the Distributor must provide the Company with written proof
                  that such pricing commitments were obtained prior to the
                  announced price increase. Sales shall be F.O.B. Company's
                  facility. Orders calling for delivery prior to the effective
                  date of a price change shall be subject to the previous
                  price; provided, that (i) any delays in shipment are not
                  caused by the Distributor being on "credit hold" status,

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                  and (ii) such orders shall not be substantially in excess of
                  Distributor's usual ordering pattern. All payments are due
                  within 30 days of the date of invoice.

         C.       Prior to the shipment of any Product by the Distributor
                  wherein the price charged to the customer would result in a
                  gross margin earned by the Distributor of less than 25%, the
                  Company must specifically approve the pricing to the
                  customer and guarantee Distributor a minimum of 25% gross
                  margin prior to the sale being accepted. In the unlikely
                  event that the gross margin earned by Distributor on sales
                  of the Company's Products should fall below 25%, it is
                  mutually agreed, in consideration of the time and expenses
                  that will be incurred by the Distributor in obtaining these
                  sales, that the Company will award the Distributor a credit
                  towards future Product purchases by Distributor in an amount
                  equal to the amount needed for Distributor to receive the
                  agreed-upon minimum 25% gross margin for the sale(s) in
                  which its gross margin was less than 25%. For purposes of
                  this computation, "gross margin" is defined as the net
                  selling price to the customer (invoice price), less the cost
                  of the Products purchased based on the Company's distributor
                  price list, divided by the net selling price and multiplied
                  by 100.

         D.       All sales hereunder shall be subject to the Company's standard
                  terms and conditions of sale (including provisions thereof
                  with respect to disclaimer or warranties) except for such
                  terms and conditions of sale that conflict with any provision
                  hereof.

         E.       All sales are to be made by Distributor only to customers
                  located in the Territory.

         F.       The Company will charge Distributor interest on all past due
                  invoices for Product orders at an interest rate equal to the
                  lesser of (i) 1.5% per month (18.00% APR) or (ii) the maximum
                  legal interest rate then established by the laws of the State
                  of Maryland. The Distributor shall be liable for all costs and
                  reasonable attorney fees incurred by the Company in order to
                  collect on any past due account.

7.       LIMITATION OF DISTRIBUTOR'S AUTHORITY

         A.       Distributor shall be an independent contractor of the Company.
                  Under no circumstances shall Distributor or its
                  representatives, agents or employees be deemed the agent of
                  the Company for any purpose, nor shall Distributor enter into
                  any contract or make any representation or commitment in the
                  name of or on behalf of the Company, except as provided for in
                  this Agreement.

         B.       Distributor shall under no circumstances make any warranties
                  or representations with respect to the Company's products
                  beyond those warranties and representations expressly issued
                  or approved by the Company in writing, or which are included
                  in the Company's promotional or informational materials.

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8.       PRODUCT DEFECTS AND REPAIRS

         Distributor shall promptly inform the Company of any information it may
         obtain that relates to any claimed or actual defect or deficiency in
         any Product. In no event shall Distributor attempt to repair or correct
         a defect or deficiency in any Product, or advise any other person to so
         act, without the express authorization of the Company. In all cases
         involving such defects or deficiencies, Distributor shall proceed as
         instructed by the Company. However, Distributor must comply with all
         applicable laws and regulations including, but not limited to, the
         regulations of the FDA as they apply to Medical Devices.

9.       SAMPLES

         The Company shall provide the Distributor with a reasonable amount of
         Products (relative to anticipated sales by the Distributor) to be used
         as samples and literature at no charge to the Distributor.

10.      CONFIDENTIALITY

         Distributor recognizes the importance of confidentiality with respect
         to the matters covered by this Agreement or relating to the Products,
         and agrees to keep confidential such matters and such information and
         knowledge as the Company may from time to time provide regarding the
         Company's business affairs, products, trade secrets, customers,
         manufacturing, marketing, or the like. Distributor agrees not to
         disclose at any time, before or after the termination or expiration of
         this Agreement, any part of such matters, information or knowledge,
         including without limitation, the names and other material information
         pertaining to customers of the Company, whether or not such customers
         were developed by Distributor, except as such disclosure is authorized
         by the Company, or as necessary in the course of the Distributor's
         duties under this Agreement. This provision shall not apply to
         confidential information (i) that becomes public through no act or
         fault of Distributor or its subsidiaries, (ii) that is independently
         developed by Distributor or its subsidiaries by persons who have not
         had access to the confidential information, (iii) that is received by
         Distributor or its subsidiaries from a third party not known to be
         under restriction on disclosure or use, (iv) that is in the lawful
         possession of Distributor of its subsidiaries without any limitations
         on disclosure prior to its disclosure by the Company, or (v) that is
         required by law or by judicial or regulatory process to be disclosed.
         The Company understands that the Distributor will be required to
         publicly file this Agreement with the Securities and Exchange
         Commission in connection with its status as a reporting company under
         the Securities Exchange Act of 1934, as amended.

11.      TERMINATION OF DISTRIBUTORSHIP

         A.       Either party may terminate this Agreement without cause upon
                  written notice delivered at least three months prior to the
                  effective date. If Distributor terminates this Agreement
                  without cause and provides the required notice to Company,
                  Company may accelerate the effective date of termination to a
                  date not less than 30 days after the notice of termination is
                  delivered.

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         B.       No later than three months after the Distributor first orders
                  Products from the Company, the Company shall identify the
                  minimum volume of Product sales in the Territory that the
                  Distributor shall be required to order in each quarter for
                  the duration of the initial term hereof, in the form
                  attached hereto as Appendix C. After such time, if the
                  Distributor fails to obtain orders for delivery within the
                  Territory of at least the volume of Products in units
                  indicated on Appendix C, the Company may notify the
                  Distributor in writing that this Agreement may be
                  terminated. The Distributor will have 60 days to correct the
                  deficient performance. If terminated for deficient
                  performance, the Distributor can purchase Products on a
                  non-exclusive basis for 120 days following the date of
                  termination at the same pricing and discounts as provided in
                  Appendix A, as modified from time to time. The minimum sales
                  volume of Products in units per quarter as stated on
                  Appendix C may be amended by written agreement of the
                  Company and the Distributor prior to the expiration of the
                  initial term and any succeeding one-year term hereof.

         C.       Not less than 30 days before the expiration of the initial
                  term and any succeeding one-year term hereof, the Company may
                  notify Distributor of revised sales targets, which will have
                  been mutually agreed upon, to be included as Appendix C for
                  the renewal term of this Agreement. In the unlikely event that
                  a new quota amount cannot be mutually agreed upon, then the
                  quota will become 105% of the prior period's quota. During the
                  first six months of this Agreement, the Distributor will be
                  required only to use its best efforts to meet the targeted
                  quota.

         D.       Except as provided in Paragraph B of this section, in the
                  event of a material default by either the Company or the
                  Distributor in the performance of its duties, obligations, or
                  undertakings under this Agreement, the other party shall have
                  the right to give written notice to the defaulting party
                  advising such party of the specific default involved and if,
                  within 60 days after such notice, the defaulting party has not
                  remedied such default, the other party shall have the right,
                  in addition to any other rights and remedies they may have, to
                  terminate this Agreement immediately upon given written notice
                  to the defaulting party.

         E.       The Company or the Distributor may immediately terminate this
                  Agreement at any time by giving written notice of such
                  termination in the event the other party becomes insolvent,
                  institutes or permits to be instituted against it any
                  proceedings seeking receivership, trusteeship, bankruptcy,
                  reorganization, arrangement, readjustment of debt, assignment
                  for the benefit of creditors, or other similar proceedings
                  under any applicable law.

         F.       If the Company terminates the Distributor without cause or
                  elects not to renew this Agreement even though the
                  Distributor has met its performance objectives as specified
                  on Appendix C, the Company shall pay Distributor an amount
                  equal to 12 times the Termination Amount. The "Termination
                  Amount" shall be equal to the monthly average of the
                  Distributor's net sales to customers for the three months
                  immediately preceding the effective date of such
                  termination, less the cost

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                  of goods sold (including shipping charges for shipment of
                  the Products from the Company to the Distributor and from
                  the Distributor to the customer). The payment due the
                  Distributor shall be paid in four equal quarterly
                  installments commencing on the first day of the first month
                  following the effective date of termination.

         G.       Rights upon Termination. Upon termination of this Agreement
                  for any reason, the Company and the Distributor shall be
                  bound by the following provisions:

                  1.       No Effect on Rights to Payment or Receipt of Product.
                           Termination of this Agreement shall not affect the
                           right of the Company to receive payment for the
                           Products accepted by Distributor before or after such
                           termination nor shall termination affect the right of
                           Distributor to receive the Products ordered before
                           termination.

                  2.       No Release from Obligations. Any termination of this
                           Agreement shall not release any party from
                           obligations that shall have accrued under this
                           Agreement prior to termination. No termination shall
                           release any party from liability to the other arising
                           out of or in connection with a party's breach of, or
                           failure to perform any covenant, agreement, duty or
                           obligation contained herein.

                  3.       No Right to Damages or Indemnification Resulting from
                           Termination. In the event of proper termination of
                           this Agreement, neither Distributor nor Company shall
                           have any right to damages or indemnification of any
                           nature arising from such termination, whether for the
                           loss of future profits or on account of expenditures,
                           investment, leases or commitments made in connection
                           with business or goodwill, except as specifically
                           provided for herein.

                  4.       Right to Sell Remaining Inventory. Except as
                           specifically provided elsewhere hereunder,
                           Distributor shall have the right, for a period not to
                           exceed 180 days from the date of termination, to sell
                           any Products remaining in inventory to the extent the
                           same are not repurchased by the Company pursuant to
                           Paragraph 5 below.

                  5.       Repurchase of Remaining Inventory. In the event the
                           Company terminates this Agreement for any reason
                           other than a material breach by the Distributor, the
                           Company shall repurchase from Distributor all of the
                           Products in Distributor's inventory, F.O.B. the
                           Company, and shall repay to Distributor the actual
                           price paid for such returned Products; provided,
                           however, that during any phase-out period,
                           Distributor shall use its best efforts to minimize
                           any excess inventory that would otherwise accumulate.

                  6.       No Agency Created. Except to the extent of selling
                           its remaining inventory as permitted by the foregoing
                           paragraphs, Distributor shall not

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                           thereafter represent or hold itself out as being an
                           authorized Distributor for the Company.

         H.       Any acceptance by the Company of orders for Products after
                  notice of termination is given hereunder shall be separate
                  transactions and shall not operate as a renewal or revival of
                  this Agreement or as a waiver of any provision hereof.

12.      INDEMNIFICATION

         The Company will indemnify, defend, and hold harmless Distributor and
         its officers, directors, employees and agents (collectively, the
         "Indemnified Parties") from and against any and all claims that may be
         asserted against the Indemnified Parties arising out of or relating to
         the use or sale of the Products and which claims do not result in whole
         or in part from the Indemnified Parties' willful misconduct; provided,
         that Distributor shall give the Company prompt notice of such claims
         and the Company shall have the right to conduct the defense of such
         claims and to settle such claims at its discretion.

         Throughout the term of this Agreement, the Company agrees to maintain
         products liability insurance coverage insuring the Products sold
         hereunder with a minimum limit of $2,000,000 and a deductible per
         incident of no more than $_____. In addition, the Company agrees to
         list the Distributor and the Indemnified Parties as additional insureds
         on such policy and provide Distributor with a certificate evidencing
         such coverage.

13.      TRADEMARKS AND TRADE NAMES

         A.       Distributor recognizes the validity of the Company trademarks
                  and trade name, acknowledges that the same are the property of
                  the Company, and agrees not to infringe upon, harm or contest
                  the rights of the Company in its trademarks and trade names.

         B.       Distributor shall not use any of the Companies' trademarks or
                  trade names, unless in conformity with this Agreement or
                  otherwise approved in writing by the Company.

         C.       Distributor agrees that upon termination of this Agreement for
                  any reason, it will destroy or return as directed by the
                  Company, any advertising, stationery, or other materials
                  bearing any of the Company's trade names or trademarks.

         D.       The Company agrees to defend, indemnify and hold harmless the
                  Indemnified Parties from and against any and all claims that
                  may be asserted against the Indemnified Parties arising out of
                  or relating to any trademark, trade name, proprietary interest
                  or patent related to the Products, provided the Distributor
                  promptly notifies the Company if any claim is made and
                  furnishes such information and assistance, at the Company's
                  expense, as the Company may require to defend against such
                  claim. The Company will bear all costs and expenses incurred
                  in connection with the defense of any such claims or as a
                  result

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                  of any settlement made or judgment rendered on the basis of
                  such claims.

14.      TRANSFER AND ASSIGNMENT

         Except as set forth in Section 2 hereof, neither Distributor nor the
         Company may sell, assign, or otherwise transfer this Agreement or any
         of its rights or obligations hereunder to any non-party without the
         express written consent of the non-transferring parties.

15.      BINDING AGREEMENT

         This Agreement shall be binding on the parties and their permitted
         assigns, representatives and successors.

16.      CHANGES AND ALTERATIONS

         No modification or addition of or to this Agreement shall be effective
         unless in writing and properly executed by the parties.

17.      OBSERVANCE OF LAWS

         The Company and Distributor each agree to comply with all laws,
         statutes, regulations, and ordinances relating to this Agreement and
         duly enacted by public authorities that are applicable in the
         Territory.

18.      NOTICES

         All notices required hereunder from any of the parties shall be in
         writing and shall be considered to have been duly given or served if
         delivered personally or sent by certified or registered mail, return
         receipt requested, postage prepaid, to the other parties at their
         address given above or such other address of which notice has been
         given. Notices shall be deemed effective on the date of delivery, if
         delivered personally, or three business days after mailing, if mailed.

19.      WAIVER OF BREACH

         One or more waivers of any breach of any covenant, term, or condition
         of this Agreement by any party shall not be construed as a waiver of a
         subsequent breach of the same covenant, term, or condition.

20.      GOVERNING LAW

         This Agreement shall be interpreted in accordance with and governed by
         the laws of the State of Maryland.

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21.      CONTRACT TERMS EXCLUSIVE

         This Agreement constitutes the entire Agreement among the parties with
         respect to the subject matter hereof. The parties acknowledge and agree
         that they have not made any representations with respect to the subject
         matter of this Agreement or any representations inducing the execution
         and delivery hereof except as specifically set forth in this Agreement.
         The parties acknowledge that they have relied on their own judgment in
         entering into this Agreement, or have obtained advice of counsel to the
         extent deemed necessary.

22.      SEVERABILITY

         Any provision hereof held to contravene the law of any jurisdiction
         held applicable hereto shall be deemed deleted herefrom, and all other
         provisions hereof shall remain in full force and effect.

23.      FORCE MAJEURE

         The obligations of any party to perform under this Agreement shall be
         excused if such failure to perform or any delay is caused by matters
         such as acts of God, strikes, civil commotion, riots, war, revolution,
         acts of governments, world shortage of qualified materials, shortage of
         fuel, or other causes whether similar or dissimilar to those enumerated
         which are reasonably beyond the control of the party obligated to
         perform. Upon the occurrence of such an event, the duties and
         obligations of the parties shall be suspended for the duration of the
         event preventing property performance under this Agreement; provided,
         however, that if such suspension shall continue in excess of 60 days,
         the parties shall meet and attempt to arrive at a mutually acceptable
         compromise within the spirit and intent of this Agreement. If no such
         compromise is agreed to by the parties, either party may terminate this
         Agreement by providing 10 days prior written notice to the other party.

24.      EXECUTION

         This Agreement may be executed in any number of counterparts, each of
         which shall be enforceable against the parties actually executing such
         counterparts, and all of which together shall constitute one
         instrument.

25.      ARBITRATION

         Any dispute arising under or in connection with the interpretation,
         application, implementation or enforcement of this Agreement or the
         transactions contemplated herein shall be subject to arbitration before
         the American Arbitration Association in Maryland. Such tribunal shall
         have the right to award reasonable legal fees and disbursements
         incurred to the prevailing party. The tribunal will be requested to
         determine who is the prevailing party. If the tribunal does not make
         such a determination, then each party will be responsible for its own
         legal fees and disbursements. Any arbitration award rendered between
         the parties hereto shall be binding, unless modified or vacated by a
         court of competent jurisdiction.

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         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                                     BIOACCESS, INC.

                                                     By: ______________________
                                                     Name:
                                                     Title:

                                                     VALESC INC.

                                                     By: ______________________
                                                     Name:
                                                     Title:

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                                   APPENDIX A

         1.       Bone Biopsy Drive

         2.       Bone Marrow Harvest Device

         3.       Bone Marrow Collection System

         4.       Percutaneous Pinning Procedure Kit

         5.       Small Bone Drill and Accessories

         6.       O.R. Drill and Accessories

         7.       Hand Piece and Accessories

                                       12
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                                   APPENDIX B

Distributor's Territory

                         1.  North Texas (defined as all areas north of Austin)
                         2.  Oregon

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                                   APPENDIX C

             MINIMUM SALES REQUIREMENT FOR EACH PRODUCT (BY QUARTER)

<TABLE>
<CAPTION>
------------------------- ---------- ----------- ----------- ---------- ----------- ----------- ----------- -----------

Product                   Q1 02      Q2 02       Q3 02       Q4 02      Q1 03       Q2 03       Q3 03       Q4 04
------------------------- ---------- ----------- ----------- ---------- ----------- ----------- ----------- -----------
<S>                        <C>        <C>         <C>         <C>        <C>         <C>         <C>         <C>

Bone Biopsy Drive
------------------------- ---------- ----------- ----------- ---------- ----------- ----------- ----------- -----------

Bone Marrow Harvest
Device
------------------------- ---------- ----------- ----------- ---------- ----------- ----------- ----------- -----------

Bone Marrow Collection
System
------------------------- ---------- ----------- ----------- ---------- ----------- ----------- ----------- -----------

Percutaneous Pinning
Procedure Kit
------------------------- ---------- ----------- ----------- ---------- ----------- ----------- ----------- -----------

Small Bone Drill and
Accessories
------------------------- ---------- ----------- ----------- ---------- ----------- ----------- ----------- -----------

Hand Piece and
Accessories
------------------------- ---------- ----------- ----------- ---------- ----------- ----------- ----------- -----------
</TABLE>

                                       14
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                                   APPENDIX D

                                       15<PAGE>

                               SUBLEASE AGREEMENT

1.  PARTIES

This Sublease (the "Sublease"), dated January 7, 2003 is made by and between The
Dialog Corporation, a Delaware corporation, successor by merger to Newsedge
Corporation, a Delaware corporation, ("Sublessor"), and Morris Medical, Inc., a
Texas corporation ("Sublessee").

2.  MASTER LEASE

On May 26, 1999, Red Sea Group Addison, L.P., as Landlord ("Lessor") entered
into a lease ("Mastery Lease") with Sublessor, whereby Lessor leased to
Sublessor 1,720 rentable square feet of space ("Premises") in that certain
building ("Building") known as Addison Plaza, located at 16200 Addison Road,
Addison, Texas.

A true and complete copy of the Master Lease is attached hereto as Exhibit A and
except as otherwise provided in Section 11 hereof made a part hereof

Any capitalized term used herein and not otherwise defined shall have the
meaning given to it in the Master Lease. To the extent any term or condition of
this Sublease conflicts with any term or condition of the Master Lease, as
between Sublessor and Sublessee (but not as between Lessor and Sublessor), this
Sublease shall govern.

3.  SUBLET SPACE

3(a) Demise of Sublet Space and Use of Common Areas. Sublessor hereby subleases
the Premises to Sublessee (as shown on Exhibit B attached hereto) and all
improvements and fixtures contained therein as of the execution of this Sublease
(the "Sublet Space"), on the terms and conditions set forth in this Sublease,
together with the right to use, to the extent such right is extended to
Sublessor pursuant to the terms of the Master Lease, in common with others, such
portions of the lobbies, elevators and other public portions of the Building as
may be necessary for access to the Sublet Space.

3(b) Condition of Sublet Space. Sublessor shall deliver the Sublet Space to
Sublessee on the Commencement Date (as such term is hereinafter defined) "as is"
and "where is," in broom-clean, condition, with the improvements made pursuant
to Article 10 hereof

3(e) Maintenance of Sublet Space. Compliance with Laws. End of Term.

Sublessee shall maintain the Sublet Space in good condition and repair and shall
return the same to Sublessor after the Expiration Date (as defined in Section 6
hereof) in the same condition as they are delivered to Sublessee on the
Commencement Date, normal wear and tear and casualty not caused by Sublessee
excepted.

During the term of this Sublease, Sublessee shall comply with all applicable
laws, ordinances,

<PAGE>

rules and regulations of any governmental authorities regarding the Sublet
Space, provided that Sublessee shall have no responsibility to cure any
violation of laws, ordinances, rules and regulations existing prior to the
Commencement Date.

4.  FURNITURE

Sublessor hereby grants to Sublessee, without charge, the right to use, during
the Sublease Term, the furniture located in the Sublet Space as of the execution
date of this Sublease (the "Furniture"). In addition to any other rights and
remedies available to Sublessor under this Sublease or the Master Lease,
Sublessor may revoke this license at anytime during the Sublease Term if
Sublessee is its default hereunder beyond applicable grace and cure periods. On
the Expiration Date, provided that Sublessee is not in default hereunder,
Sublessor shall be deemed to have conveyed to Sublessee, without charge, all of
its right, title and interest in, and to the Furniture. The Furniture will be
conveyed to Sublessee in its "as is" condition on the Expiration Date. Sublessee
shall pay all sales tax, if any, imposed upon Sublessor by any governmental
authority in connection with the transfer of the Furniture by Sublessor to
Sublessee. On or before the Expiration Date, Sublessee shall be solely
responsible for the removal from the Sublet Space, at its sole cost and expense,
of the Furniture and all other movable property, furniture, furnishings and
trade fixtures furnished by or at the expense of Sublessee, other than those
affixed to the Sublet Space which are not required to be removed by the
Sublessor pursuant to the terms of the Master Lease.

5.  REPRESENTATIONS BY SUBLESSOR AND SUBLESSEE

Sublessor represents to Sublessee:

i. that it is duly incorporated and validly existing corporation under the laws
of incorporation as stated in this Sublease;

ii. that the individual signing on behalf of Sublessor has the power and
authority to so execute;

iii. that the Master Lease has not been amended or modified and is in full force
and effect; and

Sublessee represents to Sublessor

i. that it is duly incorporated and validly existing corporation under the laws
of incorporation as stated in this Sublease;

ii. that the individual signing on behalf of Sublessee has the power and
authority to so execute; and

iii. that the financial statements provided to Sublessor in connection with this
Sublease are true, complete and accurate in all material respects.

<PAGE>

6.   TERM

The term of this Sublease (the "Sublease Term") shall commence on the later of
(i) February 1, 2003 or (ii) the date the consent required pursuant to Section
15 hereof. bias been delivered by Sublessor to Sublessee ("Commencement Date")
end, unless sooner terminated as provided herein, shall end at midnight on June
29, 2004 (the 'Expiration Date"), subject to the terms of the Master Lease.

If Sublessor is unable to give possession of the Sublet Space on the
Commencement Date hereof for any reason, Sublessor shall not be subject to any
liability for failure to give possession on said date and the validity of this
Sublease shall not be impaired under such circumstances, except as provided in
Section 15 herein, nor shall the same be construed to extend the term of this
Sublease, but the rent payable hereunder shall be abated (provided Sublessee is
not responsible for Sublessor's inability to deliver possession) until after
Sublessor shall have given Sublessee notice that the Sublet Space is available
for Sublessee's occupancy and shall have delivered possession of the Sublet
Space to Sublessee.

7.   RENT/SERVICES & UTILITIES

7.1 Sublease Base Rent: Sublessee shall pay to Sublessor without deduction,
setoff, notice or demand, at the following address: The Dialog Corporation,
11000 Regency Parkway, Suite 10, Cary, North Carolina 27511, attention: Jeff
Oehler, or at such other address as Sublessor may from time to time designate by
written notice to Sublessee, base rent ("Monthly Base Rent") in the amount of
$1,576.67.

Monthly Base Rent is inclusive of electric, subject to the terms of the Master
Lease. The Monthly Base Rent shall be payable on a monthly basis, in advance,
commencing 30 days from the Commencement Date ("Rent Commencement Date") and on
the first day of each month thereafter during the Sublease Term. If the Sublease
Term begins or ends on a day other than the first or last day of the month, the
Monthly Base Rent for any partial month shall be prorated on a per diem basis.
The first full monthly installment of Monthly Base Rent in the amount of
$1,576.67 shall be due and payable by Sublessee upon the execution of this
Sublease.

7.2 Adjustment of Base Rental. Commencing 12 months from the Commencement Date
of this Lease, Sublessee shall pay to Sublessor its pro rata share of Operating
Expenses, as calculated in accordance with Article 4 of the Master Lease, except
that Section 1(I) of the Master Lease is hereby amended to read, "The aggregate
of Operating Expenses incurred in connection with the Building during calendar
year 2003" anal the year referenced in Section 4(a) shall be changed to read
"2004."

7.3 Electricity and Phone Services;

a. Electricity: Sublessee shall at all times comply with Lessor's rules and
regulations applicable to the service, equipment, wiring and requirements of the
electricity in the Building. Sublessee covenants and agrees at all times that
its use of electricity will not exceed the capacity of the existing feeders to
the Building or the risers or wiring installations therein (the existing
feeders, risers and wiring installations servicing the Sublet Space are
hereinafter referred to as the

<PAGE>

"Electrical System"). Sublessee shall not use any electrical equipment, which,
in Sublessor's sole judgement will overload any component of the Electrical
System. Sublessee shall not make any installations, alterations, additions or
changes to the Electrical System without Sublessor's prior written consent in
each such instance. Sublessor agrees that it shall not unreasonably withhold or
delay its consent if Lessor has approved o(pound) such installations,
alterations, additions or changes to Electrical System.

b. Telephone Service: Sublessee shall pay all telephone charges for the Sublet
Space during the Sublease Term directly to the telephone company providing same
to Sublessee.

7.3 Interest on Late Payments. If all or any portion of the Monthly Base Rent or
any other sums due to Sublessor under this Sublease shall not be paid when due,
such unpaid Monthly Base Rent or any other amount due to Sublessor under this
Sublease shall bear interest, from the date on which such sum was originally due
until the date when paid, at a rate equal to the applicable rate pursuant to the
terms of the Master Lease.

8.    USE OF SUBLET SPACE

The Sublet Space shall be used and occupied by Sublessee only for the uses set
forth in Section I (h) of the Master Lease.

9.    ASSIGNMENT AND SUBLETTING

Sublessee shall not assign this Sublease or further sublet all or any part of
the Sublet Space without the prior written consent of Sublessor and Lessor.

10.   CONDITION OF SPACE ON DELIVERY AND ALTERATION OF SUBLET SPACE

Sublessee acknowledges that it is accepting the Sublet Space in "as is"
condition and Sublessor has no obligation to make improvements or alterations
thereto except as expressly provided in this Article 10. Sublessee shall, at its
own, expense, paint, repair blinds, install shelving and repair minor damages to
the Sublet Space. Provided that Sublessee is not in default hereunder beyond
applicable grace and cure periods, Sublessee shall receive a credit of the first
month of Monthly Base Rent hereunder in the amount of $1,576.67 toward such
repairs and alterations performed by Sublessee. Sublessee shall be solely
responsible for any costs in excess of $1,576.67 to complete such repairs and
alterations.

Sublessee shall not make any alterations to the Sublet Space without the prior
written consent of Sublessor and Lessor. Sublessor shall not withhold its
consent if Lessor consents to such alterations. As of the Expiration Date,
Sublessee shall be responsible for removing, at its sole cost and expense, any
alterations done by Sublessee.

11.   OTHER, PROVISIONS OF MASTER LEASE

a. Incorporation by reference: Except as otherwise provided herein to the
contrary, all terms and

<PAGE>

conditions of the Master Lease are incorporated into and made a part of this
Sublease, as between Sublessor and Sublessee only, as if Sublessor were the
Lessor thereunder, Sublessee the tenant thereunder, and the Sublet Space were
the Sublet Space leased by the Sublessor.

The following provisions of the Master Lease are not incorporated herein and
Sublessee shall have no rights or obligations pursuant thereto: Definitions:
Sections 1(a) ("Landlord"), 1(b) ("Tenant"), 1(e) ("Base Rental"), 1(f)
("Prepaid Rental"), 1(g) ("Security Deposit"), 1(j) ("Leasing Agent"), 1(l)
("Submission Dates', 1(m) ("Allowance"), first sentence of Article 7
(Installation of Improvements: ADA Compliance), Article 8 (Completion of
Improvements acid Commencement of Rent), Article 9 (Limited Right to Calculate
Rentable Space; Subsequent Liquidation), Article 21 (Assignment and Subletting),
last sentence of Article 22 (Holding Over), Article 36 (Consents), Article 38
(Brokerage), Article 46 (Effective Date), Exhibit h (Leasehold Improvements
Agreement), Exhibit F (Tenant's Option to Renew), and Schedule 1 (Tenant
Improvements - Building Standard) all of which are either covered by Sections of
this Sublease or have no application to the Sublessee.

b. Additional Amendments to Master Lease Provisions.

i. References. All references to "Landlord" or "Owner" in the Master Lease shall
be deemed to be references to Sublessor and Lessor unless otherwise indicated.
The reference to Landlord or Owner, as the case may be, in the following
sections shall refer solely to Lessor under the Master Lease: Section 1(n)
("Rentable Axes"), second sentence and subsection (b) of Article 2 (Lease of
Premises, Parking Privileges), subsections (a) through (e) of Article 3
(Services by Landlord), second sentence of Article 7 (Installation of
Improvements: ADA Compliance), last sentence of Article 10 (Repairs and
Reentry), Article 11 (Alterations and Additions by Tenant), Article 18 (Fire and
Casualty), Article 19 (Condemnation), Article 20 (Relocation of Premises),
Article 32 (Building Name), Article 33 (Subordination).

ii. Abatements. Sublessee shall not be entitled to any abatements of Monthly
Base Rent or any additional rent unless Sublessor is entitled to such abatements
pursuant to the terms of the Master Lease and actually receives such abatement
from Lessor.

iii. Services. Notwithstanding the incorporation of any provisions of the Master
Lease addressing services or repairs, Sublessor shall not have any liability to
Sublessee for any failure to provide any service or perform any obligation,
which is the responsibility of Lessor under the Master Lease. Sublessor's only
responsibility shall be to use commercially reasonable efforts to cause Lessor
to perform its obligations under the Master Lease for the benefit of Sublessee.

iv. Fire and Casualty and Condemnation. Notwithstanding the incorporation of
Articles 18 and 19 of the Master Lease, to the extent the Master Lease gives
Lessor any right to terminate the Master Lease in the event of the partial or
total damage or destruction or condemnation of the Sublet Space or the Building
of which the Sublet Space is a part, this Sublease shall terminate
contemporaneously with, the Master Lease without any liability of Sublessor as a
result thereof. Sublessor shall give to Sublessee notice of Lessor's exercise of
any such right within ten (10) days after Sublessor receives any such notice
from Lessor.

<PAGE>

v. Insurance. Sublessee shall, as to the Sublet Space, procure and maintain
policies of insurance covering liability and physical damage with respect to the
Sublet Space, as are required. of Sublessor under Article 17 of the Master
Lease, insuring Lessor and in addition to Sublessor. Sublessee shall provide
with satisfactory evidence of such insurance prior to the Commencement Date oaf
this Sublease.

With respect to those provisions of the Master Lease not eliminated from
incorporation herein by reference or amended herein: (i) Sublessee assumes and
agrees to perform the obligations of Lessee under such provisions of the Master
Lease to the extent that such obligations are applicable to the Sublet Space
during the Sublease Term and (ii) Sublessor assumes and agrees to perform the
obligations of Lessor under such provisions of the Master Lease to the extent
that such obligations are applicable to the Sublet Space during the Sublease
Term. Neither Sublessor nor Sublessee shall commit or suffer any act or omission
that will violate any of the provisions of the Master Lease or the Sublease. If
the Master Lease or Sublease terminates as a result of a default or breach of
Sublessor or Sublessee under thus Sublease and/or Master Lease, then the
defaulting party shall be liable to the non defaulting party for the direct
damage suffered as a result of the such termination. This liability shall
survive termination of this Sublease.

12. BROKER PARTICIPATION

Sublessor and Sublessee warrant and represent that they have dealt with no real
estate brokers in connection with, this Sublease other than NAI Stoneleigh Huff
Brous McDowell and Transwestern Commercial Services and NAI Friedland Realty
Incorporation (the "Brokers") and that Sublessor agrees to pay the Brokers
pursuant to a separate written agreement and that no broker other than the
Brokers axe entitled to any commission on account of this Sublease. Each party
shall hold the other party harmless from and against any and all costs
(including reasonable attorney's fees), expense or liability for any
compensation, commissions and charges claimed by any other broker through
contacts the indemnifying party had with respect to this Sublease.

13.  NOTICES /TIME PERIODS

All notices and demands which may or are to be required to be given to either
party by the other hereunder shall be in writing. All notices and demands by the
Sublessor to the Sublessee shall be sent by United States Mail, certified or
registered mail, postage prepaid, or by private delivery service addressed to
the Premises, Attention: Ed Kraus, President, or to such other person or place
as the Sublessee may from time to time designate in a notice to the Sublessor.
All notices and demands by the Subleases to Sublessor shall be sent by United
States Mail, certified or registered mail, postage prepaid, or by private
delivery service addressed to: Thomson Legal & Regulatory Inc., 610 Opperman
Drive, Eagan, MN 55123, Attention,: Vice President, U.S. Real Estate, with a
copy to The Thomson Corporation, One Station Place, Stamford Connecticut 06902,
Attention: Real Estate Counsel, or to such other person or place as the
Sublessor may from lime to time designate in a notice to the Sublessee. All
notices shall be effective on receipt or refusal of delivery. The time limits
provided in the Master Lease for the Sublessor to give notices, make demands,
perform any act, condition or covenant, or exercise any right, remedy or option,
except in the case of payment of Monthly Base Rent or any additional rent, which
shall be within the

<PAGE>

time periods prescribed herein, are changed for the purposes of the
incorporation of the Master Lease in this Sublease by the shortening the same by
ten (10) days in each instance, unless such time limit is ten (10) days or less,
in which event it shall be shortened by five (5) days (but in no event less than
twenty-four (24) hours), so that notices may be given, demands made, any act,
condition or covenant performed, or any right, remedy or option hereunder
exercised within the time limit relating thereto contained in the Master Lease.
Each parry shall, no later than five (5) business days after receipt thereof,
give the other party a copy of any ' notice, demand or. other communication
received from Lessor.

14.  QUIET ENJOYMENT

Subject to the provisions of this Sublease, Sublessor covenants that so long as
Sublessee is not in default in the performance of its covenants and agreements
under this Sublease beyond any applicable cure period, Sublessee's quiet and
peaceable enjoyment of the Sublet Space shall not be disturbed or interfered
with by Sublessor or any person claiming by, though or under Sublessor.
Sublessor hither covenants that Sublessor shall not terminate the Sublease or
amend the Sublease so as to adversely affect the rights of Sublessee under this
Sublease without the prior written consent of Sublessee.

15.  CONSENT BY LESSOR

This Sublease shall be: of no force or effect unless consented to by Lessor by
execution and delivery of a consent document after the execution hereof. In the
event this Sublease is nullified pursuant to the terns of this Section 15, any
monies paid by Sublessee to Sublessor shall be promptly refunded, the parties
hereto shall bear their respective costs in connection with this Sublease and
shall .have no further liability hereunder. Sublessor, at its expense, hereby
agrees to pursue the required Lessor consent pursuant to the Master Lease as
promptly as reasonably possible after the mutual, execution of this Sublease. In
the event Lessor consent to this Sublease is not obtained fur any reason
whatsoever within 45 days following the mutual execution of this Sublease,
either party may give the other party hereto written notice that this Sublease
shall be deemed null and void and of no effect, provided, however, before this
Sublease can be deemed null and void and of no effect, Sublessor shall promptly
refund all sums paid by Sublessee hereunder.

16.   ENTIRE AGREEMENT

There are no oral, agreements between Sublessor and Sublessee affecting this
Sublease, and this Sublease supersedes and cancels any and all previous
negotiations, arrangements, brochures, agreements and understandings, if any
between Sublessor and Sublessee or displayed by Sublessor to Sublessee with
respect to the subject matter of this Sublease, except to the extent the Master
Lease is incorporated herein by reference. This Sublease may not be amended
except in writing signed by both parties authorized officers. This Sublease may
be executed in counterparts and shall be deemed fully executed and delivered
when a counterpart executed by each patty has been delivered to the other.

<PAGE>

17.  LIABILITY OF THE PARTIES

Notwithstanding any other provision contained herein to the contrary, a party
shall look only to the assets of the other party for the satisfaction of any
liability of such other party under this Sublease, it being expressly understood
and agreed that any partner, officer, director, employee or agent of a party, as
an individual, shall not be held personally liable for such obligations and the
claiming party shall not pursue any satisfaction of any judgment against the
other party against the assets of such other party's partners, officers,
directors, employees or agents. Sublessor's liability hereunder, if any, shall
be limited to direct damages.

18.  INDEMNITY

Effective from the Commencement Date, Sublessee shall assume the risk of
responsibility for, have the obligation to insure against, and indemnity
Sublessor and hold it harmless from any and all liability for any loss or damage
or injury to any person (including death resulting therefrom) or property
occurring within the Sublet Space, regardless of cause, except to the extent any
loss or damage is caused by the negligence (whether by acts or omissions) or
willful misconduct of Sublessor, its employees and agents, and from and against
any and all losses, costs, damages, expenses and liabilities, including without
limitation, reasonable attorney fees, court costs and disbursements, to the
extent incurred by Sublessor by reason of the breach or default under this
Sublease or the Master Lease by Sublessee or its officers, directors, agents,
employees, contractors, licensees, sublessees (except for Sublessee), assigns or
invitees which results in the termination of the Master Lease. Sublessee hereby
releases Sublessor from any and all liability for same. Sublessee's Obligation
to indemnify Sublessor hereunder shall include the duty to defend against any
claims asserted by reason of such loss, damage or injury and to pay any
judgments, settlements, costs, fees and expenses, including reasonable
attorney's fees incurred by Sublessor in connection therewith. The indemnity
provisions in the Sublease shall survive termination of this Sublease.

Sublessor shall notify Sublessee in writing of any loss, cost, damage, expense
or liability for which Sublessor is seeking indemnification hereunder within, a
reasonable time period following the event giving rise to the indemnification;
however, failure to provide timely notification shall not limit Sublessee's
indemnification obligations hereunder unless such delay materially impairs
Sublessor's right of recovery with respect to such loss, cost, damage, expense
or liability.

19.  SECURITY DEPOSIT

Upon its execution of this Sublease, Sublessee shall deposit with Sublessor, a
cash security deposit (the "Security Deposit") in the amount of One Thousand
Five Hundred Seventy Six and 67/100 Dollars ($1,576.67), which Sublessor may
draw upon to cure any default under this Sublease continuing beyond any
applicable notice and cure periods or to compensate Sublessor for any damage
Sublessor incurs as a result of Sublessee's failure to perform any of its
obligations hereunder. If Sublessee fails to pay rent or other charges due
hereunder, or otherwise defaults with respect to any provision of this Sublease
beyond any applicable notice and cure periods, Sublessor may use, apply, or
retain all or any portion of the Security Deposit for the payment of any rent or

<PAGE>

other charge in default or for the payment of any sum to which Sublessor may
become obligated by reason of Sublessee's default, ox to compensate Sublessor
for any loss or damage which Sublessor may suffer thereby. If Sublessor draws on
the Security Deposit, within ten (10) days of such draw, Sublessee shall
replenish the Security Deposit so that the amount available to Sublessor from
the Security Deposit provided hereunder is the amount specified above.
Sublessee's failure to replenish the Security Deposit as required hereunder
within the tune specified herein shall constitute an Event of Default under this
Sublease and shall entitle Sublessor to draw the full amount of the Security
Deposit then in effect, in addition to any other rights at law, in equity or
pursuant to the Master Lease.

Provided there is no uncured default on the Expiration Date, any balance of the
Security Deposit not used, applied or retained by Sublessor as above provided,
shall be returned to Sublessee within fifteen days after the Sublease Expiration
Date and after delivery of possession of the entire Demised Premises to
Sublessor in accordance with the terms of this Sublease. Any interest that
accrues on the Security Deposit shall belong to Sublessor.

Sublessee covenants that it will not assign or encumber, or attempt to assign or
encumber, the Security Deposit and that neither Sublessor nor its successors or
assigns shall be bound by any such assignment, encumbrance, attempted
assignment, or attempted encumbrance. In the event that any bankruptcy,
insolvency, reorganization or other debtor-creditor proceedings shall be
instituted by or against the Sublessee, its successors or assigns, the Security
Deposit shall be deemed to be applied to the payment of the Sublease Rent and
additional rent due Sublessor for periods prior to the institution of such
proceedings and the balance, if any, may be retained by Sublessor in partial
satisfaction of Sublessor's damages.

20.   TERMINATION OF MASTER LEASE.

In the event of the termination of the Master Lease prior to the Expiration hate
for any reason whatsoever, this Sublease shall simultaneously terminate without
any liability of Sublessor to Sublessee, except if such termination is due to
Sublessor's failure to perform any of its obligations under this Sublease or the
Master Lease. Sublessor covenants that Sublessor shall not voluntarily terminate
the Master Lease prior to the Expiration Date, or consent to any modification,
amendment or supplement to the Master Lease which will materially diminish
Sublessee's rights or increase Sublessee's obligations under this Sublease,
without Sublessee's prior written consent.

21.  CAPTIONS

The captions, headings and titles, if any, in this Sublease arc solely for
convenience of reference and shall not affect its interpretation.

22.  SUCCESSORS AND ASSIGNS.

Subject to the limitations set forth in Section 9 hereof arid Article 21 of the
Master Lease, the provisions of this Sublease shall extend to, bind and inure to
the benefit of the parties hereto and their respective successors and assigns.

<PAGE>

IN WITNESS WHEREOF, Sublessor and Sublessee have executed this Sublease as of
the date first written above.

THE DIALOG CORPORATION

By
Name:
Title:

MORRIS MEDICAL, INC.

By
Name:
Title:

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