Document:

<PAGE>
                                                                    Exhibit 10.1

                                CREDIT AGREEMENT

                                (LINE OF CREDIT)

        This Agreement (the "Agreement") is made and entered into as of May 7,
2002, by and between BANK OF THE WEST doing business as UNITED CALIFORNIA BANK
(the "Bank") and HYCOR BIOMEDICAL, INC. (the "Borrower"), on the terms and
conditions that follow:

                                     SECTION

                                        1

                                   DEFINITIONS

1.1     CERTAIN DEFINED TERMS: Unless elsewhere defined in this Agreement, the
        following terms shall have the following meanings (such meanings to be
        generally applicable to the singular and plural forms of the terms
        defined):

        1.1.1  "ADVANCE": shall mean an advance to the Borrower under the credit
               facility (ies) described in Section 2.

        1.1.2  "BUSINESS DAY": shall mean a day, other than a Saturday or
               Sunday, on which commercial banks are open for business in
               California.

        1.1.3  "COLLATERAL": shall mean the property described in Section 3,
               together with any other personal or real property in which the
               Bank may be granted a lien or security interest to secure payment
               of the Obligations.

        1.1.4  "CURRENT LIABILITIES": shall mean current liabilities as
               determined in accordance with generally accepted accounting
               principles, including any negative cash balance on the Borrower's
               financial statement and Indebtedness for borrowed money under
               lines of credit with the Bank used by the Borrower for working
               capital purposes.

        1.1.5  "DEBT": shall mean all liabilities of the Borrower less
               Subordinated Debt, if any.

        1.1.6  "EFFECTIVE TANGIBLE NET WORTH": shall mean the Borrower's stated
               net worth plus Subordinated Debt but less all intangible assets
               of the Borrower (i.e., goodwill, trademarks, patents, copyrights,
               organization expense, and similar intangible items including, but
               not limited to, investments in and all amounts due from
               affiliates, officers or employees).

        1.1.7  "ENVIRONMENTAL CLAIMS": shall mean all claims, however asserted,
               by any governmental authority or other person alleging potential
               liability or responsibility for violation of any Environmental
               Law or for Discharge or injury to the environment or threat to
               public health, personal injury (including sickness, disease or
               death), property damage, natural resources damage, or otherwise
               alleging liability or responsibility for damages (punitive or
               otherwise), cleanup, removal, remedial or response costs,
               restitution, civil or criminal penalties, injunctive relief, or
               other type of relief, resulting from or based upon (a) the
               presence, placement, discharge, emission or release (including
               intentional and unintentional, negligent and non-negligent,
               sudden or non-sudden, accidental or non-accidental placement,
               spills, leaks, Discharges, emissions or releases) of any
               Hazardous Material at, in, or from property, whether or not owned
               by the Borrower, or (b) any other circumstances forming the basis
               of any violation, or alleged violation, of any Environmental Law.

                                      -1-
<PAGE>
        1.1.8  "ENVIRONMENTAL LAWS": shall mean all federal, state or local
               laws, statutes, common law duties, rules, regulations, ordinances
               and codes, together with all administrative orders, directed
               duties, requests, licenses, authorizations and permits of, and
               agreements with, any governmental authorities, in each case
               relating to environmental, health, safety and land use matters;
               including the Comprehensive Environmental Response, Compensation
               and Liability Act of 1980 ("CERCLA"), the Clean Air Act, the
               Federal Water Pollution Control Act of 1972, the Solid Waste
               Disposal Act, the Federal Resource Conservation and Recovery Act,
               the Toxic Substances Control Act, the Emergency Planning and
               Community Right-to-Know Act, the California Hazardous Waste
               Control Law, the California Solid Waste Management, Resource,
               Recovery and Recycling Act, the California Water Code and the
               California Health and Safety Code.

        1.1.9  "ENVIRONMENTAL PERMITS": shall have the meaning provided in
               Section 5.11 hereof.

        1.1.10 "ERISA": shall mean the Employee Retirement Income Security Act
               of 1974, as amended from time to time, including (unless the
               context otherwise requires) any rules or regulations promulgated
               thereunder.

        1.1.11 "EVENT OF DEFAULT": shall have the meaning set forth in Section
               7.

        1.1.12 "EXPIRATION DATE": shall mean July 1, 2004, or the date of
               termination of the Bank's commitment to lend under this Agreement
               pursuant to Section 8, whichever shall occur first.

        1.1.13 "HAZARDOUS MATERIALS": shall mean all those substances which are
               regulated by, or which may form the basis of liability under, any
               Environmental Law, including all substances identified under any
               Environmental Law as a pollutant, contaminant, hazardous waste,
               hazardous constituent, special waste, hazardous substance,
               hazardous material, or toxic substance, or petroleum or petroleum
               derived substance or waste.

        1.1.14 "INDEBTEDNESS": shall mean, with respect to the Borrower, (i) all
               indebtedness for borrowed money or for the deferred purchase
               price of property or services in respect of which the Borrower is
               liable, contingently or otherwise, as obligor, guarantor or
               otherwise, or in respect of which the Borrower otherwise assures
               a creditor against loss and (ii) obligations under leases which
               shall have been or should be, in accordance with generally
               accepted accounting principles, reported as capital leases in
               respect of which the Borrower is liable, contingently or
               otherwise, or in respect of which the Borrower otherwise assures
               a creditor against loss.

        1.1.15 "LIBOR ADVANCE": shall have the respective meaning as it is
               defined for each facility under Section 2, hereof.

        1.1.16 "LIBOR INTEREST PERIOD": shall have the respective meaning as it
               is defined for each facility under Section 2, hereof.

        1.1.17 "LIBOR RATE": shall have the respective meaning as it is defined
               for each facility under Section 2, hereof.

        1.1.18 "LINE ACCOUNT": shall have the meaning provided in Section 2.2
               hereof.

        1.1.19 " LINE OF CREDIT": shall mean the credit facility described as
               such in Section 2.

        1.1.20 "OBLIGATIONS": shall mean all amounts owing by the Borrower to
               the Bank pursuant to this Agreement including, but not limited
               to, the unpaid principal amount of any loans or advances.

                                      -2-
<PAGE>
        1.1.21 "ORDINARY COURSE OF BUSINESS": shall mean, with respect to any
               transaction involving the Borrower or any of its subsidiaries or
               affiliates, the ordinary course of the Borrower's business, as
               conducted by the Borrower in accordance with past practice and
               undertaken by the Borrower in good faith and not for the purpose
               of evading any covenant or restriction in this Agreement or in
               any other document, instrument or agreement executed in
               connection herewith.

        1.1.22 "PERMITTED LIENS": shall mean: (i) liens and security interests
               securing indebtedness owed by the Borrower to the Bank; (ii)
               liens for taxes, assessments or similar charges not yet due;
               (iii) liens of materialmen, mechanics, warehousemen, or carriers
               or other like liens arising in the Ordinary Course of Business
               and securing obligations which are not yet delinquent; (iv)
               purchase money liens or purchase money security interests upon or
               in any property acquired or held by the Borrower in the Ordinary
               Course of Business to secure Indebtedness outstanding on the date
               hereof or permitted to be incurred herein; (v) liens and security
               interests which, as of the date hereof, have been disclosed to
               and approved by the Bank in writing; and (vi) those liens and
               security interests which in the aggregate constitute an
               immaterial and insignificant monetary amount with respect to the
               net value of the Borrower's assets.

        1.1.23 "REFERENCE RATE": shall mean an index for a variable interest
               rate which is quoted, published or announced by Bank as its
               reference rate and as to which loans may be made by Bank at,
               above or below such rate.

        1.1.24 "SUBORDINATED DEBT": shall mean such liabilities of the Borrower
               which have been subordinated to those owed to the Bank in a
               manner acceptable to the Bank.

        1.1.25 "VARIABLE RATE ADVANCE": shall have the respective meaning as it
               is defined for each facility under Section 2, hereof.

        1.1.26 "VARIABLE RATE": shall have the respective meaning as it is
               defined for each facility under Section 2, hereof.

1.2     ACCOUNTING TERMS: All references to financial statements, assets,
        liabilities, and similar accounting items not specifically defined
        herein shall mean such financial statements or such items prepared or
        determined in accordance with generally accepted accounting principles
        consistently applied and, except where otherwise specified, all
        financial data submitted pursuant to this Agreement shall be prepared in
        accordance with such principles.

1.3     OTHER TERMS: Other terms not otherwise defined shall have the meanings
        attributed to such terms in the California Uniform Commercial Code as in
        effect on July 1, 2001 and from time to time thereafter.

                                     SECTION

                                        2

                                CREDIT FACILITIES

   2.1  THE LINE OF CREDIT

        2.1.1  THE LINE OF CREDIT: On terms and conditions as set forth herein,
               the Bank agrees to make Advances to the Borrower from time to
               time from the date hereof to the Expiration Date, provided the
               aggregate amount of such Advances outstanding at any time does
               not exceed $2,000,000.00 (the "Line of Credit"). Within the
               foregoing limits, the Borrower may borrow, partially or wholly
               prepay, and reborrow under this Section 2.1. Proceeds of the Line
               of

                                      -3-
<PAGE>
               Credit shall be used for working capital .

        2.1.2  MAKING LINE ADVANCES: Each Advance shall be conclusively deemed
               to have been made at the request of and for the benefit of the
               Borrower (i) when credited to any deposit account of the Borrower
               maintained with the Bank or (ii) when paid in accordance with the
               Borrower's written instructions. Subject to the requirements of
               Section 4 and provided such request is made in a timely manner as
               provided in Section 2.1.5 below, Advances shall be made by the
               Bank under the Line of Credit .

        2.1.3  REPAYMENT: On the Expiration Date, the Borrower hereby promises
               and agrees to pay to the Bank in full the aggregate unpaid
               principal amount of all Advances then outstanding, together with
               all accrued and unpaid interest thereon.

        2.1.4  INTEREST ON ADVANCES: Interest shall accrue from the date of each
               Advance under the Line of Credit at one of the following rates,
               as quoted by the Bank and as elected by the Borrower below:

               (i)    Variable Rate Advances: A variable rate per annum
                      equivalent to the Reference Rate (the "Variable Rate").
                      Interest shall be adjusted concurrently with any change in
                      the Reference Rate. An Advance based upon the Variable
                      Rate is hereinafter referred to as a "Variable Rate
                      Advance".

               (ii)   LIBOR Advances: A fixed rate quoted by the Bank for one
                      week, 1, 2, 3, or 6 months or for such other period of
                      time that the Bank may quote and offer (provided that any
                      such period of time does not extend beyond the Expiration
                      Date) (the "LIBOR Interest Period") for Advances in the
                      minimum amount of $500,000.00. Such interest rate shall be
                      a percentage approximately equivalent to 2.00% in excess
                      of the Bank's LIBOR Rate which is that rate determined by
                      the Bank's Treasury Desk as being the arithmetic mean
                      (rounded upwards, if necessary, to the nearest whole
                      multiple of one-sixteenth of one percent (1/16%)) of the
                      U. S. dollar London Interbank Offered Rates for such
                      period appearing on page 3750 (or such other page as may
                      replace page 3750) of the Telerate screen at or about
                      11:00 a.m. (London time) on the second Business Day prior
                      to the first days of such period (adjusted for any and all
                      assessments, surcharges and reserve requirements) (the
                      "LIBOR Rate"). An Advance based upon the LIBOR Rate is
                      hereinafter referred to as a "LIBOR Advance".

                      Interest on any Advance shall be computed on the basis of
                      360 days per year, but charged on the actual number of
                      days elapsed.

                      The Borrower hereby promises and agrees to pay interest in
                      arrears on Variable Rate Advances and LIBOR Advances on
                      the first day of each month.

                      If interest is not paid as and when it is due, it shall be
                      added to the principal, become and be treated as a part
                      thereof, and shall thereafter bear like interest.

        2.1.5  NOTICE OF BORROWING: Upon written or telephonic notice which
               shall be received by the Bank at or before 2:00 p.m. (California
               time) on a Business Day, the Borrower may borrow under the Line
               of Credit by requesting:

               (i)    A Variable Rate Advance. A Variable Rate Advance may be
                      made on the day notice is received by the Bank; provided,
                      however, that if the Bank shall not have received notice
                      at or before 2:00 p.m. on the day such Advance is
                      requested to be made, such Variable Rate Advance may, at
                      the Bank's option, be made on the next Business Day.

                                      -4-
<PAGE>
               (ii)   A LIBOR Advance. Notice of any LIBOR Advance shall be
                      received by the Bank no later than two Business Days prior
                      to the day (which shall be a Business Day) on which the
                      Borrower requests such LIBOR Advance to be made.

        2.1.6  NOTICE OF ELECTION TO ADJUST INTEREST RATE: The Borrower may
               elect:

               (i)    That interest on a Variable Rate Advance shall be adjusted
                      to accrue at the LIBOR Rate; provided, however, that such
                      notice shall be received by the Bank no later than two
                      Business Days prior to the day (which shall be a Business
                      Day) on which the Borrower requests that interest be
                      adjusted to accrue at the LIBOR Rate.

               (ii)   That interest on a LIBOR Advance shall continue to accrue
                      at a newly quoted LIBOR Rate or shall be adjusted to
                      commence to accrue at the Variable Rate; provided,
                      however, that such notice shall be received by the Bank no
                      later than two Business Days prior to the last day of the
                      LIBOR Interest Period pertaining to such LIBOR Advance. If
                      the Bank shall not have received notice (as prescribed
                      herein) of the Borrower's election that interest on any
                      LIBOR Advance shall continue to accrue at the newly quoted
                      LIBOR Rate, the Borrower shall be deemed to have elected
                      that interest thereon shall be adjusted to accrue at the
                      Variable Rate upon the expiration of the LIBOR Interest
                      Period pertaining to such Advance.

        2.1.7  PREPAYMENT: The Borrower may prepay any Advance in whole or in
               part, at any time and without penalty, provided, however, that:
               (i) any partial prepayment shall first be applied, at the Bank's
               option, to accrued and unpaid interest and next to the
               outstanding principal balance; and (ii) during any period of time
               in which interest is accruing on any Advance on the basis of the
               LIBOR Rate, no prepayment shall be made except on a day which is
               the last day of the LIBOR Interest Period pertaining thereto. If
               the whole or any part of any LIBOR Advance is prepaid by reason
               of acceleration or otherwise, the Borrower shall, upon the Bank's
               request, promptly pay to and indemnify the Bank for all costs,
               expenses and any loss (including loss of future interest income)
               actually incurred by the Bank and any loss (including loss of
               profit resulting from the re-employment of funds) deemed
               sustained by the Bank as a consequence of such prepayment.

               The Bank shall be entitled to fund all or any portion of its
               Advances in any manner it may determine in its sole discretion,
               but all calculations and transactions hereunder shall be
               conducted as though the Bank actually funded all Advances through
               the purchase of dollar deposits bearing interest at the same rate
               as U.S. Treasury securities in the amount of the relevant Advance
               and in maturities corresponding to the date of such purchase to
               the Expiration Date hereunder.

        2.1.8  INDEMNIFICATION FOR LIBOR RATE COSTS: During any period of time
               in which interest on any Advance is accruing on the basis of the
               LIBOR Rate, the Borrower shall, upon the Bank's request, promptly
               pay to and reimburse the Bank for all costs incurred and payments
               made by the Bank by reason of any future assessment, reserve,
               deposit or similar requirement or any surcharge, tax or fee
               imposed upon the Bank or as a result of the Bank's compliance
               with any directive or requirement of any regulatory authority
               pertaining or relating to funds used by the Bank in quoting and
               determining the LIBOR Rate.

        2.1.9  CONVERSION FROM LIBOR RATE TO VARIABLE RATE: In the event that
               the Bank shall at any time determine that the accrual of interest
               on the basis of the LIBOR Rate (i) is infeasible because the Bank
               is unable to determine the LIBOR Rate due to the unavailability
               of U.S. dollar deposits, contracts or certificates of deposit in
               an amount approximately equal to the amount of the relevant
               Advance and for a period of time approximately equal to relevant
               LIBOR Interest Period or (ii) is or has become unlawful or
               infeasible by reason of the Bank's compliance with any new law,
               rule, regulation, guideline or order, or any new

                                      -5-
<PAGE>
               interpretation of any present law, rule, regulation, guideline
               or order, then the Bank shall give telephonic notice thereof
               (confirmed in writing) to the Borrower, in which event any
               Advance bearing interest at the LIBOR Rate shall be deemed to be
               a Variable Rate Advance and interest shall thereupon immediately
               accrue at the Variable Rate.

2.2     LINE ACCOUNT: The Bank shall maintain on its books a record of account
        in which the Bank shall make entries for each Advance and such other
        debits and credits as shall be appropriate in connection with the credit
        facilities granted hereunder (the "Line Account"). The Bank shall
        provide the Borrower with a statement of the Borrower's Line Account,
        which statement shall be considered to be correct and conclusively
        binding on the Borrower unless the Borrower notifies the Bank to the
        contrary within 30 days after the Borrower's receipt of any such
        statement which it deems to be incorrect.

2.3     PAYMENTS: If any payment required to be made by the Borrower hereunder
        becomes due and payable on a day other than a Business Day, the due date
        thereof shall be extended to the next succeeding Business Day and
        interest thereon shall be payable at the then applicable rate during
        such extension. All payments required to be made hereunder shall be made
        to the office of the Bank designated for the receipt of notices herein
        or such other office as Bank shall from time to time designate.

2.4     LATE PAYMENT: In addition to any other rights the Bank may have
        hereunder, if any payment of principal or interest or any portion
        thereof, under this Agreement is not paid within 5 days of when due, a
        late payment charge equal to five percent (5%) of such past due payment
        may be assessed and shall be immediately payable.

                                     SECTION

                                        3

                                   COLLATERAL

3.1     THE COLLATERAL: To secure payment and performance of all the Borrower's
        Obligations under this Agreement and all other liabilities, loans,
        guarantees, covenants and duties owed by the Borrower to the Bank,
        whether or not evidenced by this or by any other agreement, absolute or
        contingent, due or to become due, now existing or hereafter and
        howsoever created, the Borrower hereby grants the Bank a security
        interest in and to all of the following property ("Collateral"):

               (i)    EQUIPMENT. All goods now owned or hereafter acquired by
                      the Borrower or in which the Borrower now has or may
                      hereafter acquire any interest, including, but not limited
                      to, all machinery, equipment, furniture, furnishings,
                      fixtures, tools, supplies and motor vehicles of every kind
                      and description, and all additions, accessions,
                      improvements, replacements and substitutions thereto and
                      thereof (the "Equipment").

               (ii)   INVENTORY. All inventory now owned or hereafter acquired
                      by the Borrower, including, but not limited to, all raw
                      materials, work in process, finished goods, inventory
                      leased to others or held for lease, merchandise, parts and
                      supplies of every kind and description, including
                      inventory temporarily out of the Borrower's custody or
                      possession, together with all returns on accounts (the
                      "Inventory").

               (iii)  ACCOUNTS. All accounts, letter of credit rights,
                      commercial tort claims, contract rights and general
                      intangibles, including software and payment intangibles,
                      now owned or hereafter created or acquired by the
                      Borrower, including, but not limited to, all receivables,
                      including as-extracted receivables, credit card
                      receivables, health care receivables, insurance
                      receivables, software receivables and license

                                      -6-
<PAGE>
                      fees, goodwill, trademarks, trademark applications, trade
                      styles, trade names, patents, patent applications,
                      copyrights and copyright applications, customer lists,
                      business records and computer programs, tapes, disks and
                      related data processing software that at any time evidence
                      or contain information relating to any of the Collateral.

               (iv)   DOCUMENTS. All documents, instruments and chattel paper,
                      whether electronic or tangible, now owned or hereafter
                      acquired by the Borrower, including, but not limited to,
                      warehouse and other receipts, bills of sale, promissory
                      notes and bills of lading.

               (v)    MONIES. All monies, deposit accounts, certificates of
                      deposit, investment property and securities of the
                      Borrower now or hereafter in the Bank's or its agents'
                      possession.

               (vi)   ASSETS. All assets of the Borrower, whether now existing
                      or hereafter acquired, and the products and proceeds
                      thereof.

The Bank's security interest in the Collateral shall be a continuing lien and
shall include the proceeds and products of the Collateral including, but not
limited to, the proceeds of any insurance thereon.

Borrower hereby consents to and instructs Bank to file financing statements in
all locations deemed appropriate by the Bank from time to time.

The security interest granted to Bank in the Collateral shall not secure or be
deemed to secure any Indebtedness of the Borrower to the Bank which is, at the
time of its creation, subject to the provisions of any state or federal consumer
credit or truth-in-lending disclosure statutes.

                                     SECTION

                                        4

                              CONDITIONS PRECEDENT

4.1     CONDITIONS PRECEDENT TO THE INITIAL EXTENSION OF CREDIT: The obligation
        of the Bank to make the initial Advance or the first extension of credit
        to or on account of the Borrower hereunder is subject to the conditions
        precedent that the Bank shall have received before the date of such
        initial Advance or such first extension of credit all of the following,
        in form and substance satisfactory to the Bank:

               (i)    AUTHORITY TO BORROW. Evidence that the execution, delivery
                      and performance by the Borrower of this Agreement and any
                      document, instrument or agreement required hereunder have
                      been duly authorized.

               (ii)   FEES. A fee of $2,500.00, such fee to be deemed to be
                      fully earned upon payment.

               (iii)  FINANCING STATEMENTS. UCC-1 financing statement(s)
                      describing the Collateral, which have been filed with the
                      Secretary of State or the county recorder as a lien of
                      first priority.

               (iv)   MISCELLANEOUS. Such other evidence as the Bank may request
                      to establish the consummation of the transaction
                      contemplated hereunder and compliance with the conditions
                      of this Agreement.

                                      -7-
<PAGE>
4.2     CONDITIONS PRECEDENT TO ALL EXTENSIONS OF CREDIT: The obligation of the
        Bank to make each Advance or each other extension of credit, as the case
        may be, to or on account of the Borrower (including the initial Advance
        or the first extension of credit) shall be subject to the further
        conditions precedent that, on the date of each Advance or each extension
        of credit and after the making of such Advance or extension of credit:

               (i)    REPORTING REQUIREMENTS. The Bank shall have received the
                      documents set forth in Section 6.1.

               (ii)   SUBSEQUENT APPROVALS. The Bank shall have received such
                      supplemental approvals, opinions or documents as the Bank
                      may reasonably request.

               (iii)  REPRESENTATIONS AND WARRANTIES. The representations
                      contained in Section 5 and in any other document,
                      instrument or certificate delivered to the Bank hereunder
                      are true, correct and complete.

               (iv)   EVENT OF DEFAULT. No event has occurred and is continuing
                      which constitutes, or with the lapse of time or giving of
                      notice or both, would constitute an Event of Default.

               (v)    COLLATERAL. The security interest in the Collateral has
                      been duly authorized, created and perfected with first
                      priority and is in full force and effect.

The Borrower's acceptance of the proceeds of any loan, Advance or extension of
credit, or the Borrower's applying for any Letter of Credit, or the Borrower's
execution of any document or instrument evidencing or creating any Obligation
hereunder shall be deemed to constitute the Borrower's representation and
warranty that all of the above statements are true and correct.

                                     SECTION

                                        5

                         REPRESENTATIONS AND WARRANTIES

The Borrower hereby makes the following representations and warranties to the
Bank, which representations and warranties are continuing:

5.1     STATUS: The Borrower's correct legal name is as stated in this Agreement
        and the Borrower is a corporation duly organized and validly existing
        under the laws of the state of Delaware and with its chief executive
        office in the state of Delaware and is properly licensed and is
        qualified to do business and in good standing in, and, where necessary
        to maintain the Borrower's rights and privileges, has complied with the
        fictitious name statute of every jurisdiction in which the Borrower is
        doing business.

5.2     AUTHORITY: The execution, delivery and performance by the Borrower of
        this Agreement and any instrument, document or agreement required
        hereunder have been duly authorized and do not and will not: (i) violate
        any provision of any law, rule, regulation, order, writ, judgment,
        injunction, decree, determination or award presently in effect having
        application to the Borrower; (ii) result in a breach of or constitute a
        default under any material indenture or loan or credit agreement or
        other material agreement, lease or instrument to which the Borrower is a
        party or by which it or its properties may be bound or affected; or
        (iii) require any consent or approval of its stockholders or violate any
        provision of its articles of incorporation or by-laws.

                                      -8-
<PAGE>
5.3     LEGAL EFFECT: This Agreement constitutes, and any instrument, document
        or agreement required hereunder when delivered hereunder will
        constitute, legal, valid and binding obligations of the Borrower
        enforceable against the Borrower in accordance with their respective
        terms.

5.4     FICTITIOUS TRADE STYLES: There are no fictitious trade styles used by
        the Borrower in connection with its business operations. The Borrower
        shall notify the Bank not less than 30 days prior to effecting any
        change in the matters described herein or prior to using any other
        fictitious trade style at any future date, indicating the trade style
        and state(s) of its use.

5.5     FINANCIAL STATEMENTS: All financial statements, information and other
        data which may have been or which may hereafter be submitted by the
        Borrower to the Bank are true, accurate and correct and have been or
        will be prepared in accordance with generally accepted accounting
        principles consistently applied and accurately represent the financial
        condition or, as applicable, the other information disclosed therein.
        Since the most recent submission of such financial information or data
        to the Bank, the Borrower represents and warrants that no material
        adverse change in the Borrower's financial condition or operations has
        occurred which has not been fully disclosed to the Bank in writing.

5.6     LITIGATION: Except as have been disclosed to the Bank in writing, there
        are no actions, suits or proceedings pending or, to the knowledge of the
        Borrower, threatened against or affecting the Borrower or the Borrower's
        properties before any court or administrative agency which, if
        determined adversely to the Borrower, would have a material adverse
        effect on the Borrower's financial condition or operations or on the
        Collateral.

5.7     TITLE TO ASSETS: The Borrower has good and marketable title to all of
        its assets (including, but not limited to, the Collateral) and the same
        are not subject to any security interest, encumbrance, lien or claim of
        any third person except for Permitted Liens.

5.8     ERISA: If the Borrower has a pension, profit sharing or retirement plan
        subject to ERISA, such plan has been and will continue to be funded in
        accordance with its terms and otherwise complies with and continues to
        comply with the requirements of ERISA.

5.9     TAXES: The Borrower has filed all tax returns required to be filed and
        paid all taxes shown thereon to be due, including interest and
        penalties, other than such taxes which are currently payable without
        penalty or interest or those which are being duly contested in good
        faith.

5.10    MARGIN STOCK. The proceeds of any loan or advance hereunder will not be
        used to purchase or carry margin stock as such term is defined under
        Regulation U of the Board of Governors of the Federal Reserve System.

5.11    ENVIRONMENTAL COMPLIANCE. The operations of the Borrower comply, and
        during the term of this Agreement will at all times comply, in all
        respects with all Environmental Laws; the Borrower has obtained all
        licenses, permits, authorizations and registrations required under any
        Environmental Law ("Environmental Permits") and necessary for its
        ordinary course operations, all such Environmental Permits are in good
        standing, and the Borrower is in compliance with all material terms and
        conditions of such Environmental Permits; neither the Borrower nor any
        of its present property or operations is subject to any outstanding
        written order from or agreement with any governmental authority nor
        subject to any judicial or docketed administrative proceeding,
        respecting any Environmental Law, Environmental Claim or Hazardous
        Material; there are no Hazardous Materials or other conditions or
        circumstances existing, or arising from operations prior to the date of
        this Agreement, with respect to any property of the Borrower that would
        reasonably be expected to give rise to Environmental Claims; provided,
        however, that with respect to property leased from an unrelated third
        party, the foregoing representation is made to the best knowledge of the
        Borrower. In addition, (i) the Borrower does not have any underground
        storage tanks that are not properly registered or permitted under
        applicable Environmental Laws, or that are leaking or disposing of
        Hazardous Materials off-site, and (ii) the Borrower has notified all of
        their employees of

                                      -9-
<PAGE>
        the existence, if any, of any health hazard arising from the conditions
        of their employment and have met all notification requirements under
        Title III of CERCLA and all other Environmental Laws.

5.12    INVENTORY:

               (i)    The Borrower keeps correct and accurate records.
                      (itemizing and describing the kind, type, quality and
                      quantity of inventory, the Borrower's cost therefor and
                      selling price thereof, and the daily withdrawals therefrom
                      and additions thereto).

               (ii)   All inventory is of good and merchantable quality, free
                      from defects.

               (iii)  The inventory is not stored with a bailee, warehouseman or
                      similar party.

                                     SECTION

                                        6

                                    COVENANTS

The Borrower covenants and agrees that, during the term of this Agreement, and
so long thereafter as the Borrower is indebted to the Bank under this Agreement,
the Borrower will, unless the Bank shall otherwise consent in writing:

6.1     REPORTING AND CERTIFICATION REQUIREMENTS: Deliver or cause to be
        delivered to the Bank in form and detail satisfactory to the Bank:

               (i)    Not later than 15 days after filing each year, a copy of
                      the Borrower's SEC Form 10K.

               (ii)   Not later than 15 days after filing each quarter, a copy
                      of the Borrower's SEC Form 10Q.

               (iii)  Concurrently with the delivery of the financial reports
                      required hereunder, a compliance certificate stating that
                      the Borrower is in compliance with all covenants contained
                      herein and that no Event of Default or potential Event of
                      Default has occurred or is continuing, and certified to by
                      the chief financial officer of the Borrower.

               (iv)   Promptly upon the Bank's request, such other information
                      pertaining to the Borrower, the Collateral or any
                      guarantor hereunder as the Bank may reasonably request.

6.2     FINANCIAL CONDITION: The Borrower promises and agrees, during the term
        of this Agreement and until payment in full of all of the Borrower's
        Obligations, the Borrower will maintain at all times:

               (i)    A minimum Effective Tangible Net Worth of at least
                      $10,000,000.00.

               (ii)   A ratio of Debt to Effective Tangible Net Worth of not
                      more than .75 to 1.

               (iii)  A ratio of the sum of cash, cash equivalents and accounts
                      receivable to Current Liabilities of not less than 1.0 to
                      1.

6.3     PRESERVATION OF EXISTENCE; COMPLIANCE WITH APPLICABLE LAWS: Maintain and
        preserve its existence and all rights and privileges now enjoyed; and
        conduct its business and operations in accordance with all applicable
        laws, rules and regulations.

                                      -10-
<PAGE>
6.4     MERGE OR CONSOLIDATE: Not liquidate or dissolve, merge or consolidate
        with or into, or acquire any other business organization, provided
        however, that this Section 6.4 shall not apply to transactions in which
        Borrower is the surviving entity.

6.5     MAINTENANCE OF INSURANCE: Keep and maintain the Collateral insured for
        not less than its full replacement value against all risks of loss and
        damage and maintain insurance in such amounts and covering such risks as
        is usually carried by companies engaged in similar businesses and owning
        similar properties in the same general areas in which the Borrower
        operates and maintain such other insurance and coverages as may be
        required by the Bank. All such insurance shall be in form and amount and
        with companies satisfactory to the Bank.

        With respect to insurance covering properties in which the Bank
        maintains a security interest or lien, such insurance shall name the
        Bank as loss payee pursuant to a loss payable endorsement satisfactory
        to the Bank and shall not be altered or canceled except upon 10 days'
        prior written notice to the Bank. Upon the Bank's request, the Borrower
        shall furnish the Bank with the original policy or binder of all such
        insurance.

6.6     MAINTENANCE OF COLLATERAL AND OTHER PROPERTIES: Except for Permitted
        Liens, keep and maintain the Collateral free and clear of all levies,
        liens, encumbrances and security interests (including, but not limited
        to, any lien of attachment, judgment or execution) and defend the
        Collateral against any such levy, lien, encumbrance or security
        interest; comply with all laws, statutes and regulations pertaining to
        the Collateral and its use and operation; execute, file and record such
        statements, notices and agreements, take such actions and obtain such
        certificates and other documents as necessary to perfect, evidence and
        continue the Bank's security interest in the Collateral and the priority
        thereof; maintain accurate and complete records of the Collateral which
        show all sales, claims and allowances; and properly care for, house,
        store and maintain the Collateral in good condition, free of misuse,
        abuse and deterioration, other than normal wear and tear. The Borrower
        shall also maintain and preserve all its properties in good working
        order and condition in accordance with the general practice of other
        businesses of similar character and size, ordinary wear and tear
        excepted.

6.7     PAYMENT OF OBLIGATIONS AND TAXES: Make timely payment of all assessments
        and taxes and all of its liabilities and obligations including, but not
        limited to, trade payables, unless the same are being contested in good
        faith by appropriate proceedings with the appropriate court or
        regulatory agency. For purposes hereof, the Borrower's issuance of a
        check, draft or similar instrument without delivery to the intended
        payee shall not constitute payment.

6.8     DEPOSITORY RELATIONSHIPS: Maintain its primary business depository
        relationship with Bank, including general, operating and administrative
        deposit accounts and cash management services.

6.9     INSPECTION RIGHTS AND ACCOUNTING RECORDS: The Borrower will maintain
        adequate books and records in accordance with generally accepted
        accounting principles consistently applied and in a manner otherwise
        acceptable to Bank, and, at any reasonable time and from time to time,
        permit the Bank or any representative thereof to examine and make copies
        of the records and visit the properties of the Borrower and discuss the
        business and operations of the Borrower with any employee or
        representative thereof. If the Borrower shall maintain any records
        (including, but not limited to, computer generated records or computer
        programs for the generation of such records) in the possession of a
        third party, the Borrower hereby agrees to notify such third party to
        permit the Bank free access to such records at all reasonable times and
        to provide the Bank with copies of any records which it may request, all
        at the Borrower's expense, the amount of which shall be payable
        immediately upon demand.

6.10    PAYMENT OF DIVIDENDS: Not declare or pay any dividends on any class of
        stock now or hereafter outstanding except dividends payable solely in
        the Borrower's capital stock.

                                      -11-
<PAGE>
6.11    LOANS: Not make any loans or advances or extend credit to any third
        person, including, but not limited to, directors, officers,
        shareholders, partners, employees, affiliated entities and subsidiaries
        of the Borrower, except for credit extended in the Ordinary Course of
        Business as presently conducted.

6.12    LIENS AND ENCUMBRANCES: Not create, assume or permit to exist any
        security interest, encumbrance, mortgage, deed of trust, or other lien
        (including, but not limited to, a lien of attachment, judgment or
        execution) affecting any of the Borrower's properties, or execute or
        allow to be filed any financing statement or continuation thereof
        affecting any of such properties, except for Permitted Liens or as
        otherwise provided in this Agreement.

6.13    TRANSFER ASSETS: Not, after the date hereof, sell, contract for sale,
        convey, transfer, assign, lease or sublet, any of its assets (including,
        but not limited to, the Collateral) except in the Ordinary Course of
        Business and, then, only for full, fair and reasonable consideration.

6.14    CHANGE IN NATURE OF BUSINESS: Not make any material change in its
        financial structure or the nature of its business as existing or
        conducted as of the date hereof.

6.15    MAINTENANCE OF JURISDICTION: Borrower shall maintain the jurisdiction of
        its organization and chief executive office, or if applicable, principal
        residence, as set forth herein and not change such jurisdiction name or
        form of organization without 30 days prior written notice to Bank.

6.16    COMPENSATION OF EMPLOYEES: Compensate its employees for services
        rendered at an hourly rate at least equal to the minimum hourly rate
        prescribed by any applicable federal or state law or regulation.

6.17    NOTICE: Give the Bank prompt written notice of any and all (i) Events of
        Default; (ii) litigation, arbitration or administrative proceedings to
        which the Borrower is a party and in which the claim or liability
        exceeds $100,000.00 or which affects the Collateral; (iii) other matters
        which have resulted in, or might result in a material adverse change in
        the Collateral or the financial condition or business operations of the
        Borrower, and (iv) any enforcement, cleanup, removal or other
        governmental or regulatory actions instituted, completed or threatened
        against the Borrower or any of its properties.

6.18    ENVIRONMENTAL COMPLIANCE: The Borrower shall conduct its operations and
        keep and maintain all of its property in compliance with all
        Environmental Laws and, upon the written request of the Bank, the
        Borrower shall submit to the Bank, at the Borrower's sole cost and
        expense, at reasonable intervals, a report providing the status of any
        environmental, health or safety compliance, hazard or liability.

6.19    INVENTORY:

               (i)    Except as provided herein below, the Borrower's inventory
                      shall, at all times, be in the Borrower's physical
                      possession, shall not be held by others on consignment,
                      sale on approval, or sale or return and shall be kept only
                      at: 7272 Chapman Avenue, Garden Grove, CA 92841.

               (ii)   The Borrower shall keep correct and accurate records.

               (iii)  All inventory shall be of good and merchantable quality,
                      free from defects.

               (iv)   The inventory shall not at any time or times hereafter be
                      stored with a bailee, warehouseman or similar party
                      without the Bank's prior written consent and, in such
                      event, the Borrower will concurrently therewith cause any
                      such bailee, warehouseman or similar party to issue and
                      deliver to the Bank, in form acceptable

                                      -12-
<PAGE>
                      to the Bank, warehouse receipts in the Bank's name
                      evidencing the storage of inventory.

               (v)    At any reasonable time and from time to time, allow Bank
                      to have the right, upon demand, to inspect and examine
                      inventory and to check and test the same as to quality,
                      quantity, value and condition and the Borrower agrees to
                      reimburse the Bank for the Bank's reasonable costs and
                      expenses in so doing.

6.20    LOCATION AND MAINTENANCE OF EQUIPMENT.:

               (i)    The Equipment shall at all times be in the Borrower's
                      physical possession, shall not be held for sale or lease,
                      and shall be kept only at the following location(s): 7272
                      Chapman Avenue, Garden Grove, CA 92841.

                      The Borrower shall not secrete, abandon or remove, or
                      permit the removal of, the Equipment, or any part thereof,
                      from the location(s) shown above or remove or permit to be
                      removed any accessories now or hereafter placed upon the
                      Equipment.

               (ii)   Upon the Bank's demand, the Borrower shall immediately
                      provide the Bank with a complete and accurate description
                      of the Equipment including, as applicable, the make,
                      model, identification number and serial number of each
                      item of Equipment. In addition, the Borrower shall
                      immediately notify the Bank of the acquisition of any new
                      or additional Equipment or the replacement of any existing
                      Equipment and shall supply the Bank with a complete
                      description of any such additional or replacement
                      Equipment.

               (iii)  The Borrower shall, at the Borrower's sole cost and
                      expense, keep and maintain the Equipment in a good state
                      of repair and shall not destroy, misuse, abuse, illegally
                      use or be negligent in the care of the Equipment or any
                      part thereof. The Borrower shall not remove, destroy,
                      obliterate, change, cover, paint, deface or alter the name
                      plates, serial numbers, labels or other distinguishing
                      numbers or identification marks placed upon the Equipment
                      or any part thereof by or on behalf of the manufacturer,
                      any dealer or rebuilder thereof, or the Bank. The Borrower
                      shall not be released from any liability to the Bank
                      hereunder because of any injury to or loss or destruction
                      of the Equipment. The Borrower shall allow the Bank and
                      its representatives free access to and the right to
                      inspect the Equipment at all times and shall comply with
                      the terms and conditions of any leases covering the real
                      property on which the Equipment is located and any orders,
                      ordinances, laws, regulations or rules of any federal,
                      state or municipal agency or authority having jurisdiction
                      of such real property or the conduct of the business of
                      the persons having control or possession of the Equipment.

               (iv)   The Equipment is not now and shall not at any time
                      hereafter be so affixed to the real property on which it
                      is located as to become a fixture or a part thereof. The
                      Equipment is now and shall at all times hereafter be and
                      remain personal property of the Borrower.

                                      -13-
<PAGE>
                                     SECTION

                                        7

                                EVENTS OF DEFAULT

        Any one or more of the following described events shall constitute an
        event of default (an "Event of Default") under this Agreement:

7.1     NON-PAYMENT: Any Borrower shall fail to pay the principal amount of any
        Obligations when due or interest on the Obligations within 5 days of
        when due.

7.2     PERFORMANCE UNDER THIS AGREEMENT: The Borrowers shall fail in any
        material respect to perform or observe any term, covenant or agreement
        contained in this Agreement or in any document, instrument or agreement
        relating to this Agreement or any other document or agreement executed
        by the Borrowers with or in favor of Bank and any such failure shall
        continue unremedied for more than 30 days after the occurrence thereof.

7.3     REPRESENTATIONS AND WARRANTIES; FINANCIAL STATEMENTS: Any representation
        or warranty made by the Borrower under or in connection with this
        Agreement or any financial statement given by the Borrower or any
        guarantor shall prove to have been incorrect in any material respect
        when made or given or when deemed to have been made or given.

7.4     OTHER AGREEMENTS: If there is a default under any agreement to which
        Borrower is a party with Bank or with a third party or parties resulting
        in a right by the Bank or by such third party or parties, whether or not
        exercised, to accelerate the maturity of any Indebtedness.

7.5     INSOLVENCY: The Borrower or any guarantor shall: (i) become insolvent or
        be unable to pay its debts as they mature; (ii) make an assignment for
        the benefit of creditors or to an agent authorized to liquidate any
        substantial amount of its properties and assets; (iii) file a voluntary
        petition in bankruptcy or seeking reorganization or to effect a plan or
        other arrangement with creditors; (iv) file an answer admitting the
        material allegations of an involuntary petition relating to bankruptcy
        or reorganization or join in any such petition; (v) become or be
        adjudicated a bankrupt; (vi) apply for or consent to the appointment of,
        or consent that an order be made, appointing any receiver, custodian or
        trustee, for itself or any of its properties, assets or businesses; or
        (vii) in an involuntary proceeding, any receiver, custodian or trustee
        shall have been appointed for all or substantial part of the Borrower's
        or guarantor's properties, assets or businesses and shall not be
        discharged within 30 days after the date of such appointment.

7.6     EXECUTION: Any writ of execution or attachment or any judgment lien
        shall be issued against any property of the Borrower and shall not be
        discharged or bonded against or released within 30 days after the
        issuance or attachment of such writ or lien.

7.7     SUSPENSION: The Borrower shall voluntarily suspend the transaction of
        business or allow to be suspended, terminated, revoked or expired any
        permit, license or approval of any governmental body necessary to
        conduct the Borrower's business as now conducted.

7.8     MATERIAL ADVERSE CHANGE: If there occurs a material adverse change in
        the Borrower's business or financial condition, or if there is a
        material impairment of the prospect of repayment of any portion of the
        Obligations or there is a material impairment of the value or priority
        of the Bank's security interest in the Collateral, or if a Borrower who
        is a natural person shall die.

7.9     CHANGE IN OWNERSHIP: There shall occur a sale, transfer, disposition or
        encumbrance (whether voluntary or involuntary), or an agreement shall be
        entered into to do so, with respect to more than 10% of the issued and
        outstanding capital stock of the Borrower.

                                      -14-
<PAGE>
7.10    IMPAIRMENT OF COLLATERAL. There shall occur any injury or damage to all
        or any part of the Collateral or all or any part of the Collateral shall
        be lost, stolen or destroyed.

                                     SECTION

                                        8

                               REMEDIES ON DEFAULT

Upon the occurrence of any Event of Default, the Bank may, at its sole and
absolute election, without demand and only upon such notice as may be required
by law:

8.1     ACCELERATION: Declare any or all of the Borrower's indebtedness owing to
        the Bank, whether under this Agreement or any other document, instrument
        or agreement, immediately due and payable, whether or not otherwise due
        and payable.

8.2     CEASE EXTENDING CREDIT: Cease making Advances or otherwise extending
        credit to or for the account of the Borrower under this Agreement or
        under any other agreement now existing or hereafter entered into between
        the Borrower and the Bank.

8.3     TERMINATION: Terminate this Agreement as to any future obligation of the
        Bank without affecting the Borrower's obligations to the Bank or the
        Bank's rights and remedies under this Agreement or under any other
        document, instrument or agreement.

8.4     PROTECTION OF SECURITY INTEREST: Make such payments and do such acts as
        the Bank, in its sole judgment, considers necessary and reasonable to
        protect its security interest or lien in the Collateral. The Borrower
        hereby irrevocably authorizes the Bank to pay, purchase, contest or
        compromise any encumbrance, lien or claim which the Bank, in its sole
        judgment, deems to be prior or superior to its security interest.
        Further, the Borrower hereby agrees to pay to the Bank, upon demand
        therefor, all expenses and expenditures (including attorneys' fees)
        incurred in connection with the foregoing.

8.5     FORECLOSURE: Enforce any security interest or lien given or provided for
        under this Agreement or under any security agreement, mortgage, deed of
        trust or other document, in such manner and such order, as to all or any
        part of the properties subject to such security interest or lien, as the
        Bank, in its sole judgment, deems to be necessary or appropriate and the
        Borrower hereby waives any and all rights, obligations or defenses now
        or hereafter established by law relating to the foregoing. In the
        enforcement of its security interest or lien, the Bank is authorized to
        enter upon the premises where any Collateral is located and take
        possession of the Collateral or any part thereof, together with the
        Borrower's records pertaining thereto, or the Bank may require the
        Borrower to assemble the Collateral and records pertaining thereto and
        make such Collateral and records available to the Bank at a place
        designated by the Bank. The Bank may sell the Collateral or any portions
        thereof, together with all additions, accessions and accessories
        thereto, giving only such notices and following only such procedures as
        are required by law, at either a public or private sale, or both, with
        or without having the Collateral present at the time of the sale, which
        sale shall be on such terms and conditions and conducted in such manner
        as the Bank determines in its sole judgment to be commercially
        reasonable. The Collateral may be disposed of in its then condition
        without any preparation or processing. In connection with any
        disposition of the Collateral, the Bank may disclaim any warranty
        relating to title, possession or quiet enjoyment. Any deficiency which
        exists after the disposition or liquidation of the Collateral shall be a
        continuing liability of the Borrower to the Bank and shall be
        immediately paid by the Borrower to the Bank.

8.6     NON-EXCLUSIVITY OF REMEDIES: Exercise one or more of the Bank's rights
        set forth herein or seek such other rights or pursue such other remedies
        as may be provided by law, in equity or in any

                                      -15-
<PAGE>
        other agreement now existing or hereafter entered into between the
        Borrower and the Bank, or otherwise.

8.7     APPLICATION OF PROCEEDS: All amounts received by the Bank as proceeds
        from the disposition or liquidation of the Collateral shall be applied
        to the Borrower's indebtedness to the Bank as follows: first, to the
        costs and expenses of collection, enforcement, protection and
        preservation of the Bank's lien in the Collateral, including court costs
        and reasonable attorneys' fees, whether or not suit is commenced by the
        Bank; next, to those costs and expenses incurred by the Bank in
        protecting, preserving, enforcing, collecting, liquidating, selling or
        disposing of the Collateral; next, to the payment of accrued and unpaid
        interest on all of the Obligations; next, to the payment of the
        outstanding principal balance of the Obligations; and last, to the
        payment of any other indebtedness owed by the Borrower to the Bank. Any
        excess Collateral or excess proceeds existing after the disposition or
        liquidation of the Collateral will be returned or paid by the Bank to
        the Borrower.

        If any non-cash proceeds are received in connection with any sale of
        Collateral, the Bank shall not apply such non-cash proceeds to the
        Obligations unless and until such proceeds are converted to such;
        provided, however, that if such non-cash proceeds are not expected on
        the date of receipt thereof to be converted to cash within one year
        after such date, the Bank shall use commercially reasonable efforts to
        convert such non-cash proceeds to cash within such one year period.

                                     SECTION

                                        9

                                  MISCELLANEOUS

9.1     AMOUNTS PAYABLE ON DEMAND: If the Borrower shall fail to pay on demand
        any amount so payable under this Agreement, the Bank may, at its option
        and without any obligation to do so and without waiving any default
        occasioned by the Borrower having so failed to pay such amount, create
        an Advance under this Agreement in an amount equal to the amount so
        payable, which Advance shall thereafter bear interest as provided
        hereunder.

9.2     DEFAULT INTEREST RATE: If an Event of Default, or an event which, with
        notice or passage of time could become an Event of Default, has occurred
        or is continuing, the Borrower shall pay to the Bank interest on any
        Indebtedness or amount payable under this Agreement at a rate which is
        3% in excess of the rate or rates then in effect under this Agreement.

9.3     RELIANCE AND FURTHER ASSURANCES: Each warranty, representation,
        covenant, obligation and agreement contained in this Agreement shall be
        conclusively presumed to have been relied upon by the Bank regardless of
        any investigation made or information possessed by the Bank and shall be
        cumulative and in addition to any other warranties, representations,
        covenants and agreements which the Borrower now or hereafter shall give,
        or cause to be given, to the Bank. Borrower agrees to execute all
        documents and instruments and to perform such acts as the Bank may
        reasonably deem necessary to confirm and secure to the Bank all rights
        and remedies conferred upon the Bank by this agreement and all other
        documents related thereto.

9.4     ATTORNEYS' FEES: Borrower shall pay to the Bank all costs and expenses,
        including but not limited to reasonable attorneys fees, incurred by Bank
        in connection with the administration, enforcement, including any
        bankruptcy, appeal or the enforcement of any judgment or any refinancing
        or restructuring of this Agreement or any document, instrument or
        agreement executed with respect to, evidencing or securing the
        indebtedness hereunder.

9.5     NOTICES: All notices, payments, requests, information and demands which
        either party hereto may desire, or may be required to give or make to
        the other party hereto, shall be given or made to such party by hand
        delivery or through deposit in the United States mail, postage prepaid,
        or by facsimile

                                      -16-
<PAGE>
        delivery, or to such other address as may be specified from time to time
        in writing by either party to the other.

        TO THE BORROWER:                     TO THE BANK:

        HYCOR BIOMEDICAL, INC.               BANK OF THE WEST doing business as
        7272 Chapman Avenue                  UNITED CALIFORNIA BANK
        Garden Grove, CA 92841               Newport Beach Office (BBC)
        Attn:  Reginald P. Jones             4400 MacArthur Boulevard
               Chief Financial Officer       Newport Beach, CA 92660
                                             Attn: James E. Martin
        FAX:   714-933-3220                        Vice President
                                             FAX:  949-797-1902

9.6     WAIVER: Neither the failure nor delay by the Bank in exercising any
        right hereunder or under any document, instrument or agreement mentioned
        herein shall operate as a waiver thereof, nor shall any single or
        partial exercise of any right hereunder or under any other document,
        instrument or agreement mentioned herein preclude other or further
        exercise thereof or the exercise of any other right; nor shall any
        waiver of any right or default hereunder, or under any other document,
        instrument or agreement mentioned herein, constitute a waiver of any
        other right or default or constitute a waiver of any other default of
        the same or any other term or provision.

9.7     CONFLICTING PROVISIONS: To the extent the provisions contained in this
        Agreement are inconsistent with those contained in any other document,
        instrument or agreement executed pursuant hereto, the terms and
        provisions contained herein shall control. Otherwise, such provisions
        shall be considered cumulative.

9.8     BINDING EFFECT; ASSIGNMENT: This Agreement shall be binding upon and
        inure to the benefit of the Borrower and the Bank and their respective
        successors and assigns, except that the Borrower shall not have the
        right to assign its rights hereunder or any interest herein without the
        prior written consent of the Bank. The Bank may sell, assign or grant
        participation in all or any portion of its rights and benefits
        hereunder. The Borrower agrees that, in connection with any such sale,
        grant or assignment, the Bank may deliver to the prospective buyer,
        participant or assignee financial statements and other relevant
        information relating to the Borrower and any guarantor.

9.9     JURISDICTION: This Agreement, any notes issued hereunder, the rights of
        the parties hereunder to and concerning the Collateral, and any
        documents, instruments or agreements mentioned or referred to herein
        shall be governed by and construed according to the laws of the State of
        California without regard to conflict of law principles, to the
        jurisdiction of whose courts the parties hereby submit.

9.10    WAIVER OF JURY TRIAL: THE BORROWER AND THE BANK EACH WAIVE THEIR
        RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION
        BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER
        LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN
        ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF
        THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO
        CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE BORROWER AND THE BANK
        EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A
        COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES
        FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED
        BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER
        PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY
        OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY
        PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
        AMENDMENTS,

                                      -17-
<PAGE>
        RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE OTHER
        LOAN DOCUMENTS.

9.11    COUNTERPARTS: This Agreement may be executed in any number of
        counterparts and all such counterparts taken together shall be deemed to
        constitute one and the same instrument.

9.12    HEADINGS: The headings herein set forth are solely for the purpose of
        identification and have no legal significance.

9.13    ENTIRE AGREEMENT AND AMENDMENTS: This Agreement and all documents,
        instruments and agreements mentioned herein constitute the entire and
        complete understanding of the parties with respect to the transactions
        contemplated hereunder. All previous conversations, memoranda and
        writings between the parties pertaining to the transactions contemplated
        hereunder not incorporated or referenced in this Agreement or in such
        documents, instruments and agreements are superseded hereby. This
        Agreement may be amended only by an instrument in writing signed by the
        Borrower and the Bank.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the date first hereinabove written.

BANK:                                         BORROWER:

BANK OF THE WEST DOING BUSINESS AS            HYCOR BIOMEDICAL, INC.
UNITED CALIFORNIA BANK
                                              BY /s/ Reg Jones
                                                --------------------------------
BY:/s/ James E. Martin                        NAME: Reginald P. Jones, Chief
   -------------------                        Financial Officer &
NAME: James E. Martin, Vice President         Senior Vice President

                                      -18-<PAGE>
                                                                    Exhibit 10.2

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

        THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Agreement") is made and
entered into by HYCOR BIOMEDICAL INC., a Delaware corporation ("Company"), and
J. DAVID THOLEN ("Tholen").

        WHEREAS, an employment agreement between the Company and Tholen was
entered into effective April 1, 2000 and expired April 1, 2002;

        WHEREAS, the parties hereto desire to renew the employment agreement
between the Company and Tholen and to amend and restate its terms in its
entirety.

        NOW, THEREFORE, in consideration of the promises and covenants set forth
in this Agreement and for other valuable consideration, the parties agree as
follows:

        1. Prior Agreement: This Agreement supercedes and replaces in its
entirety the Employment Agreement dated as of April 1, 2000.

        2. Employment: Tholen shall be employed as President and Chief Executive
Officer of the Company reporting to the Chairman, and shall faithfully and
diligently perform all duties and responsibilities required of such position
based upon the general direction of the Board of Directors from time to time,
including service on behalf of the Company's subsidiary and affiliated
companies.

        3. Term. This Agreement and Tholen's employment as President and Chief
Executive Officer shall be for a term of two (2) years commencing as of April 1,
2002 and expiring on April 1, 2004, but shall be automatically renewed for
successive one-year periods thereafter unless either party gives written notice
to the other party of non-renewal at least three (3) months in advance of the
expiration date.

        4. Compensation: In consideration for all services to be performed under
this Agreement, Tholen shall receive the following compensation:

               (a) Salary: Tholen shall be paid base salary at the rate of
$245,400.00 per year, subject to potential increases based upon annual
performance reviews.

               (b) Bonus: Tholen shall annually submit, within ten (10) days
prior to the commencement of a new fiscal year, a Bonus Plan to the Compensation
Committee of the Board of Directors for approval, under which Tholen shall
participate, based upon obtaining the agreed upon revenue, profit and stock
price milestones. Nothing herein or in said plan shall constitute a guarantee of
Tholen's employment by the Company, or a limitation on the Company's rights
under this Agreement, or limitation on the Company's rights to amend or
terminate such plan.

                                      -1-
<PAGE>
               (c) Employee Benefit Plans: Tholen shall be entitled to
participate in all employee benefit plans, including group medical, dental,
visual, and life insurance, pension, profit sharing, group and individual
disability income, stock option, vacation, and other benefit plans, on terms
commensurate with the benefits awarded management personnel of comparable status
with the Company or any affiliate of the Company, but subject, on any
termination, to Section 5(e) below.

               (d) Expense Reimbursement: The Company shall reimburse Tholen for
all reasonable expenses that he necessarily incurs in connection with his
employment and for which he presents adequate documentation in accordance with
Company policies in effect from time to time.

               (e) Relocation Expenses. The Company shall reimburse Tholen on a
monthly basis for his monthly lease obligations (not to exceed $5,000) for a
furnished apartment in Southern California for up to two (2) years provided that
Tholen remains employed hereunder. In addition, the Company shall pay directly
or shall reimburse Tholen for his reasonable relocation expenses upon
satisfactory proof thereof, up to a maximum of $50,000 (this includes any
amounts already paid or reimbursed through the execution of this Agreement).

        5. Termination: This Agreement and Tholen's employment are subject to
immediate termination at any time as follows:

               (a) Death: This Agreement shall terminate immediately upon
Tholen's death, in which event the Company's only obligations shall be (i) to
pay all compensation owing for services rendered by Tholen prior to the date of
his death; (ii) to continue paying Tholen's base salary to his estate for a
period of thirty (30) days after his death; and (iii) to make periodic
recoverable advances to Tholen's estate equivalent to Tholen's base salary for
ninety (90) days after said thirty (30) day period has lapsed, or until the
proceeds from any life insurance policy on Tholen's life become available,
whichever occurs first, with such advances to be repaid when said insurance
proceeds become available.

               (b) Disability: In the event that Tholen is disabled from
performing his assigned duties under this Agreement due to illness or injury for
a period in excess of one hundred eighty (180) days, the Company may place
Tholen on an unpaid leave of absence for a period not to exceed six (6) months,
in which case the Company's only obligation shall be (i) to continue Tholen's
group medical and life insurance for the duration of the leave; (ii) to pay the
bonus, if any, that Tholen would be entitled to under the terms of the bonus
plans referred to in Section 4(b) of this Agreement; and (iii) to allow Tholen
to continue receiving benefits under the disability insurance and other employee
benefit plans in effect at the time of his disability in accordance with the
terms and conditions of such plans. The granting of a leave of absence does not
guarantee that Tholen will be returned to employment, and the Company reserves
the right to replace Tholen or to take other action in his absence due to
business necessity. If Tholen is certified to return to work before his leave of
absence expires, and desires to do so, the

                                      -2-
<PAGE>
following provisions shall apply: (i) the Company will attempt to return Tholen
to his same or similar position, provided this does not result in undue hardship
to the Company; and (ii) if the Company is unable to reinstate Tholen because
his position has been filled, then as a special severance benefit, the Company
shall pay a lump-sum severance payment equal to twelve (12) months of Tholen's
base salary as in effect immediately prior to the commencement of Tholen's leave
of absence. If Tholen is not certified to return to work before his leave of
absence expires, or does not desire to return, his employment and this Agreement
shall terminate upon the expiration of his leave of absence.

               (c) Termination For Cause: The Company may terminate this
Agreement for cause immediately upon written notice to Tholen in the event
Tholen (i) in the course of his duties engages in misconduct which has a
material adverse effect on the Company or its business, willfully breaches this
Agreement in any material respect or consistently or habitually neglects his
duties as a Company officer, or (ii) is finally convicted of a felony. In either
event, the Company's sole obligation to Tholen in lieu of all claims for
compensation or damages shall be to pay all compensation owing for services
rendered by Tholen prior to the date of termination under this subsection.

               (d) Termination Without Cause: The Company in its sole discretion
may terminate this Agreement without cause or prior warning immediately upon
written notice to Tholen. For purposes of this Section 5(d), any resignation
following a substantial reduction in Tholen's salary, benefits (including the
failure of Company to include Tholen as a participant in its executive or
management bonus plans), duties or responsibilities shall constitute an
involuntary termination without cause. In the event of a termination under this
Section 5(d), the Company shall pay all compensation owing for services rendered
by Tholen prior to the date of termination, shall pay a lump-sum severance
benefit equal to (i) the number of months remaining of the term of this
Agreement or (ii) twelve (12) months, whichever is less, of Tholen's base salary
at the time of termination, and shall continue to provide Tholen at Company
expense all medical, disability and insurance benefits available to him at the
time of termination for the same number of months as used to calculate the
lump-sum severance benefit. As an additional severance payment, if the Company
has in effect at the time of any termination without cause under this Section
5(d) any bonus or incentive plan which provides for awards in cash and is based
on the Company's revenues or results of operations for a fiscal year, Tholen
shall be entitled to an amount equal to a pro rata award based on the period of
the fiscal year for which he was employed if a termination under this Section
5(d) occurs after the completion of three fiscal quarters. Such severance shall
be payable at the same time, and computed on the same terms, as awards under the
plan in question, except for periods of service. Such payments and benefits
shall not entitle Tholen to any other benefits or compensation program available
to Company employees.

               (e) Change In Control:

                      (i) If the Company undergoes a change in control, and
Tholen is at such time employed by the Company, Tholen shall immediately be
entitled to a

                                      -3-
<PAGE>
payment from the Company equal to 300 percent of the sum of his current base
salary and most recent bonus (the "Change Payment").

                      (ii) In the event that Tholen is terminated by the Company
within ninety (90) days before a change in control, Tholen shall receive (i) the
Change Payment, (ii) at Company expense, all medical, disability and insurance
benefits available to him at the time of such termination for a period of twenty
four (24) months after such termination or, if shorter, the maximum period
allowed under the Company's policies as then in effect or under applicable law,
(iii) acceleration of the vesting of all unvested stock options granted to
Tholen under the Company's stock option or other benefit plans so that all such
stock options will vest and be fully exercisable on the date of such
termination, (iv) extension of the post-termination exercise period for all
stock options granted to Tholen under the Company's stock option and other
benefit plans so that all such stock options will be exercisable for a period of
three months after the date of such termination (except that with respect to any
stock options having a post-termination exercise period in excess of three
months, such longer post-termination exercise period shall remain in effect),
and (v) a consulting agreement that entitles him to perform services for at
least three years after the change in control, at a minimum payment of $2,500
per day for a minimum of 20 days per year after the change in control, with
payments to him being made at least semiannually in advance.

                      (iii) In the event that Tholen resigns or is terminated by
the Company within twenty four (24) months on or after a change in control,
Tholen shall receive, in addition to the Change Payment described in Section
5(e)(1), (i) at Company expense, all medical, disability and insurance benefits
available to him at the time of such termination or resignation for a period of
twenty four (24) months after such termination or resignation, or, if shorter,
the maximum period allowed under the Company's policies as then in effect or
under applicable law, (iii) acceleration of the vesting of all unvested stock
options granted to Tholen under the Company's stock option or other benefit
plans so that all such stock options will vest and be fully exercisable on the
date of such termination or resignation, (iv) extension of the post-termination
exercise period for all stock options granted to Tholen under the Company's
stock option and other benefit plans so that all such stock options will be
exercisable for a period of three months after the date of such termination or
resignation (except that with respect to any stock options having a
post-termination exercise period in excess of three months, such longer
post-termination exercise period shall remain in effect), and (v) a consulting
agreement that entitles him to perform services for at least three years after
the change in control, at a minimum payment of $2,500 per day for a minimum of
20 days per year after the change in control, with payments to him being made at
least semiannually in advance.

                      For purposes of this subsection, the term "change in
control" shall mean any change in control that the Company would be required to
report in response to Item 5(f) of Schedule 14A of Regulation 14A promulgated
under the Securities Exchange Act of 1934, as amended (the "Exchange Act").
Without limiting the foregoing, a change in control shall also be deemed to have
occurred if (i) any "person" as defined in Section 13(d) and 14(d) of the
Exchange Act is or becomes, directly or indirectly, the "beneficial

                                      -4-
<PAGE>
owner" as defined in Rule 13 (d-3) under the Exchange Act of securities of the
Company which represent 25% or more of the combined voting power of the
Company's then outstanding securities; or (ii) during any period of two
consecutive years, individuals who at the beginning of said two year period
constituted the Board of Directors of the Company cease for any reason to
constitute at least a majority of the Board unless the election or nomination of
each new director was approved by a vote of at least two-thirds of the directors
who were in office at the beginning of said two year period.

                      Tholen shall not be entitled to the benefits of this
Section 5(e) if this Agreement and his employment are, prior to a Change of
Control, terminated pursuant to Section 5(a), (b) or (c).

                      In consideration for the benefits related to a change in
control described in this Section 5(e), Tholen agrees that upon the occurrence
of a potential change in control, he will not voluntarily terminate his
employment with the Company for a period of six (6) months after the potential
change in control. For purposes of this Agreement, a "potential change in
control" shall mean any of the following: (i) the execution of an agreement by
the Company that will result in a change in control, (ii) the Company announces
an intention to take action that will result in a change in control, or (iii)
with respect to this Agreement, the Board of Directors of the Company declares
that a potential change in control has occurred. In addition, if following a
change in control any dispute arises between the Company and Tholen as to the
terms or interpretation of this Agreement, including any action that Tholen may
take to enforce or defend himself against the terms of this Agreement, Tholen
shall be reimbursed for all costs, expenses, and attorneys' fees arising from
such dispute, provided that he obtains either a final judgment or settlement
substantially in his favor.

               (f) Company's Obligations Under This Agreement Exclusive: The
benefits set forth in subsections (a) through (e) above (which benefits, in the
event of termination pursuant to subsections (a), (c), (d) or (e), include
payment for services rendered prior to termination as provided in such
subsections), as applicable, constitute the sole obligations of the Company to
Tholen upon a termination and are in lieu of any damages or other compensation
that Tholen may claim under other Company policies in connection with this
Agreement. The benefits on termination in this Agreement are in substitution for
any severance or termination benefits otherwise available under Company policies
of general application. Tholen expressly acknowledges that certain Company
benefit or incentive plans provide for vesting in, or award of, benefits based
on employment on or through particular dates and that nothing in this Agreement
entitles him to partial vesting or partial awards under such plans. Any payments
under Section 5(d) relating to any incentive or bonus plan are expressly
acknowledged to be benefits under this Agreement and not an interpretation or
modification of any such plan.

               (g) Resignation As Officer: In the event of any termination
pursuant to this Section 5, Tholen shall be deemed to have resigned as an
officer of the Company if he was serving in such capacity at the time of
termination.

                                      -5-
<PAGE>
        6. Confidentiality: Tholen acknowledges and agrees that he has been and
will continue to be entrusted with certain trade and proprietary information
regarding the products, processes, methods of manufacture and delivery,
know-how, designs, formula, work in progress, research and development, computer
software and data bases, copyrights, trademarks, patents, marketing techniques,
and future business plans, as well as customer lists and information concerning
the identity, needs, and desires of actual and potential customers of the
Company and its subsidiaries, joint venturers, partners, and other affiliated
persons and entities, all of which derive significant economic value from not
being generally known to others outside the Company ("Confidential
Information").

               (a) During the entire term of his employment with the Company and
for two years thereafter, Tholen shall not disclose or exploit any Confidential
Information except for the sole benefit of the Company or with its express
written consent.

               (b) During the entire term of his employment by the Company and
for one year thereafter, Tholen shall not directly or indirectly solicit any
person or company known by Tholen to be an actual or actively sought customer of
the Company or its subsidiary and affiliated companies for any business is known
by Tholen to be conducted or under development by the Company, except for the
sole benefit of the Company or with its express written consent.

               (c) During the entire term of his employment by the Company and
for one year thereafter, Tholen shall not induce or attempt to induce any
employee of the Company to leave the Company's employ except for the sole
benefit of the Company or with its express written consent.

               (d) In the event any provision in this Section 6 is more
restrictive than allowed by the law of any jurisdiction in which the Company
seeks enforcement, such provision shall be deemed amended and shall then be
fully enforceable to the extent permitted by such law.

               (e) Tholen acknowledges and agrees that any violation of this
Section 6 would cause immediate irreparable damage to the Company, and that it
would be extremely difficult or impossible to determine the amount of damage
caused to the Company. Tholen therefore agrees that the Company's remedies at
law are inadequate, and hereby consents to issuance of a temporary restraining
order, preliminary and permanent injunction, and other appropriate relief to
restrain any actual or threatened violation of this Section, without limiting
any remedies the Company may have at law or in equity.

        7. Inventions: Any and all patents, copyrights, trademarks, inventions,
discoveries, developments, or trade secrets developed or perfected by Tholen
during or as the result of his employment with the Company shall constitute the
sole and exclusive property of the Company. Tholen shall disclose all such
matters to the Company, assign all right, title and interest he may have in
them, and cooperate with the Company in obtaining and perfecting any patent,
copyright, trademark, or other legal protection. This

                                      -6-
<PAGE>
Section 7 shall not apply to any invention which qualifies fully under
California Labor Code Section 2870, a true copy of which is attached to this
Agreement as Exhibit A.

        8. Conflict Of Interest: During the term of this Agreement, Tholen shall
devote his time, ability, and attention to the business of the Company, and
shall not accept other employment or engage in any other outside business
activity which interferes with the performance of his duties and
responsibilities under this Agreement or which involves actual or potential
competition with the business of the Company, except with the express written
consent of the Board of Directors.

        9. Employee Benefit Plans: All of the employee benefit plans referred to
or contemplated by this Agreement shall be governed solely by the terms of the
underlying plan documents and by applicable law. Nothing in this Agreement shall
impair the Company's right to amend, modify, replace and terminate any and all
such plans in its sole discretion as provided by law, or to terminate this
Agreement in accordance with its terms. This Agreement is for the sole benefit
of Tholen and the Company, and is not intended to create an employee benefit
plan or to modify the term of existing plans.

        10. Parachute Limitation: The payments and benefits Tholen is entitled
to under this Agreement and all other contracts, arrangements, or programs shall
not, in the aggregate, exceed the maximum amount that may be paid to Tholen
without triggering golden parachute penalties under Section 280G and related
provisions of the Internal Revenue Code, as determined in good faith by the
Company's independent auditors. If Tholen's benefits must be cut back to avoid
triggering such penalties, Tholen's benefits shall be cut back in the priority
order designated by Tholen or, if Tholen fails promptly to designate an order,
in the priority order designated by the Company. If an amount in excess of the
limit set forth in this Section is paid to Tholen, Tholen must repay the excess
amount to the Company upon demand, with interest at the rate provided for in
Internal Revenue Code Section 1274(b)(2)(B). Tholen and the Company agree
reasonably to cooperate with each other in connection with any administrative or
judicial proceedings concerning the existence or amount of golden parachute
penalties with respect to payments or benefits Tholen receives. No part of this
Agreement is made in contemplation of, or anticipates any presently impending
change in, ownership or control. Further, no payment to be made to Tholen in
accordance with any provision of this Agreement, except Paragraph 4(e) entitled
"Termination Following Change in Control," is contingent upon a change in
ownership or control of the Company. This Agreement does not provide for
payments to Tholen which are significantly different in amount, timing, terms,
or conditions from those provided under contracts entered into by the Company
and individuals performing comparable services.

        11. Assignment: This Agreement may not be assigned by Tholen, but may be
assigned by the Company to any successor in interest to its business. In the
event the Company does not survive any merger, acquisition, or other
reorganization, it shall make a reasonable effort to obtain an assumption of
this Agreement by the surviving entity in such merger, acquisition, or other
reorganization, but the failure to obtain such assumption shall not prevent or
delay such merger, acquisition, or other reorganization or

                                      -7-
<PAGE>
relieve the Company of its other obligations under this Agreement. This
Agreement shall bind and inure to the benefit of the Company's successors and
assigns, as well as Tholen's heirs, executors, administrators, and legal
representatives.

        12. Notices: All notices required by this Agreement may be delivered by
first class mail at the following addresses:

               To the Company:          Hycor Biomedical Inc.
                                        7272 Chapman Avenue
                                        Garden Grove, CA 92814-2103

               To Tholen:               J. David Tholen
                                        7272 Chapman Avenue
                                        Garden Grove, CA 92814-2103

        13. Amendment: This Agreement may be modified only by written agreement
signed by the party against whom any amendment is to be enforced.

        14. Choice Of Law: This Agreement shall be governed by the laws of the
State of California.

        15. Partial Invalidity: In the event any provision of this Agreement is
void or unenforceable, the remaining provisions shall continue in full force and
effect.

        16. Waiver: No waiver of any breach of this Agreement shall constitute a
waiver of any subsequent breach.

        17. Complete Agreement: This Agreement contains the entire agreement
between the parties, and supersedes any and all prior and contemporaneous oral
and written agreements, including Tholen's previous employment contracts, which
shall have no further force and effect.

                                      "Company"

                                      HYCOR BIOMEDICAL INC.

Dated:  June 12, 2002                 By: /s/ James R. Phelps
                                      Name: James R. Phelps
                                      Title: Board Member/Compensation Committee

                                      "Tholen"

                                      J. DAVID THOLEN

Dated:   June 12, 2002                /s/ J. David Tholen

                                      -8-
<PAGE>
                                    EXHIBIT A

                       CALIFORNIA LABOR CODE SECTION 2870

                   EMPLOYMENT AGREEMENTS; ASSIGNMENT OF RENTS

        (a) Any provision in an employment agreement which provides that an
employee shall assign, or offer to assign, any of his or her rights in an
invention to his or her employer shall not apply to an invention that the
employee developed entirely on his or her own time without using the employer's
equipment, supplies, facilities, or trade secret information except for those
inventions that either:

                (1) Relate at the time of conception or reduction to practice of
                the invention to the employer's business, or actual or
                demonstrably anticipated research or development of the
                employer; or

                (2) Result from any work performed by the employee for the
                employer.

        (b) To the extent a provision in an employment agreement purports to
require an employee to assign an invention otherwise excluded from being
required to be assigned under subdivision (a), the provision is against the
public policy of this state and is unenforceable.

                                      -9-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]