Document:

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                           STANDARD INDUSTRIAL LEASE
                  AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

1.       Parties. this Lease, dated, for reference purposes only, June 30,
         1995, is made by and between FIRST DICE ROAD COMPANY, A California
         Limited Partnership (herein called "Lessor") and Phibro-Tech, Inc., a
         Delaware Corporation (herein called "Lessee").

2.       Premises.  Lessor hereby leases to Lessee and Lessee leases
         from Lessor for the term, at the rental, and upon all of the
         conditions set forth herein, that certain real property
         situated in the County of Los Angeles, State of California,
         commonly known as 8851 Dice Road, Santa Fe Springs,
         California and described as on Schedule "A" annexed,
         together with all tangible personal property of Lessor
         located at the Premises.  Said real property including the
         land and all improvements thereon, is herein called "the
         Premises."

3.       Term.

         3.1      The term of this Lease shall be for Ten (10) Years
                  commencing on June 30, 1995 and ending on June 29, 2005
                  unless sooner terminated pursuant to any provision
                  hereof.

4.       Rent.  Lessee shall pay to Lessor as annual rent for the
         Premises Two Hundred Fifty Thousand dollars ($250,000),
         payable in equal monthly installments of $20,833.33, in
         advance, on the first day of each month of the term hereof.
         Lessee shall pay Lessor upon the execution hereof.  Rent for
         any period during the term hereof which is for less than one
         month shall be a pro rata portion of the month installment.
         Rent shall be payable in lawful money of the United States
         to Lessor at the address stated herein or to such other
         persons or at such other places as Lessor may designate in
         writing.

5.       Security Deposit.  Lessee shall deposit with Lessor upon
         execution hereof $ None  as security for Lessee's faithful
         performance of Lessee's obligations hereunder.  If Lessee
         fails to pay rent or other charges due hereunder, or
         otherwise defaults with respect to any provision of this
         Lessee, Lessor may use, apply or retain all or any portion
         of said deposit for the payment of any rent or other charge
         in default or for the payment of any other sum to which
         Lessor may become obligated by reason of Lessee's default,

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         or to compensate Lessor for any loss of damage which Lessor may
         suffer thereby. If Lessor so uses or applies all or any portion of
         said deposit, Lessee shall within ten (10) days after written demand
         therefor deposit cash with Lessor in an amount sufficient to restore
         said deposit to the full amount hereinabove stated and Lessee's
         failure to do so shall be a material breach of this Lease. Lessor
         shall not be required to keep said deposit separate from its general
         accounts. If Lessee performs all of Lessee's obligations hereunder,
         said deposit, or so much thereof as has not theretofore been applied
         by Lessor, shall be returned, without payment of interest or other
         increment for its use, to Lessee for, at Lessor's option, to the last
         assignee, if any, of Lessee's interest hereunder) at the expiration
         of the term hereof, and after Lessee has vacated the Premises.

6.       Use.

         6.1 Use. The Premises shall be used and occupied only for any lawful
purpose.

         6.2 Compliance with Law. Lessee shall, at Lessee's expense, comply
promptly with all applicable statutes, ordinances, rules, regulations, orders
and requirements in effect during the term or any part of the term hereof,
regulating the use by Lessee of the Premises. Lessee shall not use or permit
the use of the Premises in any manner that will tend to create waste or a
nuisance or, if there shall be more than one tenant of the building containing
the Premises, which shall tend to disturb such other tenants.

         6.3 Condition of Premises. Lessee hereby accepts the Premises in
their condition existing as of the date of the execution hereof, subject to
all applicable zoning, municipal, county and state laws, ordinances and
regulations governing and regulating the use of the Premises, and accepts this
Lease subject thereto and to all matters disclosed thereby and by any exhibits
attached hereto. Lessee acknowledges that neither Lessor nor Lessor's agent
has made any representation or warranty as to the suitability of the Premises
for the conduct of Lessee's business.

7.       Maintenance, Repairs and Alterations.

         7.1 Lessor's Obligations. Subject to the provisions of Article 9,
Lessee, Lessee's shall keep in good order, condition and repair, the
foundations, exterior walls and the exterior roof of the Premises. Lessor
shall have no obligation to make Lessee expressly waivers the benefits of any
statute now or hereafter in

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effect which would otherwise afford Lessee the right to make repairs at
Lessor's expense or to terminate this Lease because of Lessor's failure to
keep the Premises in good order, condition and repair. *the entire premises
including

         7.2      Lessee's Obligations.

                  (a) Subject to the provisions of Paragraph 9, Lessee, at
Lessee's expense, shall keep in good order, condition and repair the Premises
and every part thereof (regardless of whether the damaged proportion of the
Premises or the means of repairing the same are accessible to Lessee),
including, without limiting the generality of the foregoing, all plumbing,
heating, air conditioning, ventilating, electrical and lighting facilities and
equipment within the Premises, fixtures, interior walls and interior surface
of exterior walls, ceilings, windows, doors, plate glass, and skylights,
located within the Premises and all sidewalks, landscaping, driveways, parking
lots, fences and signs located in the areas which are adjacent to and included
with the Premises.

                  (b) If Lessee fails to perform Lessee's obligations under
this Paragraph 7.2 or 7.1, Lessor may at Lessor's option enter upon the
Premises after 10 days' prior written notice to Lessee, and put the same in
good order, condition and repair, and the cost thereof together with interest
thereon at the rate of 10% per annum shall be due and payable as additional
rent to Lessor together with Lessee's next rental installment.

                  (c) On the last day of the term hereof, or on any sooner
termination. Lessee shall surrender the Premises to Lessor in the same
condition as received, broom clean, ordinary wear and ten excepted. Lessee
shall repair any damage to the Premises occasioned by the removal of its trade
fixtures, furnishings and equipment pursuant to Paragraph 7.3(c), which repair
shall include the patching and filling of holes and repair of structural
damage.

         7.3      Alterations and Additions.

                  (a) Lessee may make any alterations, improvements,
additions, or utility installations in, on or about the Premises.

                  (b) Lessee shall pay when due, all claims for labor or
materials furnished or alleged to have been furnished to or for Lessee or for
use in the Premises which claims are or may be secured by any mechanics' or
material man's lien against the Premises or any interest therein Lessee shall
give Lessor not

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less than ten (10) days' notice prior to the commencement of any work in the
Premises, and Lessor shall have the right to post notices of
non-responsibility in or on the Premises as provided by law.

                  (c) All alterations, improvements, additions and utility
installations (whether or not such utility installations constitute trade
fixtures of Lessee, which may be made on the Premises, shall become the
property of Lessor and remain upon and be surrendered with the Premises at the
expiration of the term. Notwithstanding the provisions of this Paragraph
7.3(c), Lessee's machinery and equipment, other than that which is affixed to
the Premises so that it cannot be removed without material damage to the
Premises shall remain the property of Lessee and may be removed by Lessee
subject to the provisions of Paragraph 7.2(c).

8.       Insurance; Indemnity.

         8.1 Liability Insurance. Lessee shall, at Lessee's expense, obtain
and keep in force during the terms of the Lease a policy of comprehensive
public liability insurance insuring Lessor and Lessee against any liability
arising out of the ownership, use, occupancy or maintenance of the Premises
and all areas appurtenant thereto.

         8.2 Property Insurance. Lessee shall obtain and keep in force during
the term of this Lease a policy or policies of insurance covering loss or
damage to the Premises, providing protection against all perils included
within the classification of fire, extended coverage, vandalism, malicious
mischief, special extended perils (all risk).

         8.3 Waiver of Subrogation. Lessee and Lessor each hereby waives any
and all rights or recovery against the other, or against the officers,
employees, agents and representatives of the other, for loss of or damage to
such waiving party or its property or the property of others under its
control, where such loss or damage is insured against under any insurance
policy in force at the time of such loss or damage. Lessee and Lessor shall,
upon obtaining the policies of insurance required hereunder, give notice to
the insurance carrier or carriers that the foregoing mutual waiver of
subrogation is contained in this Lease.

         8.4 Indemnity. Lessee shall indemnify and hold harmless Lessor from
and against any and all claims arising from Lessee's use of the Premises, or
from the conduct of Lessee's business or from any activity, work or things
done, permitted or suffered by

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Lessee in or about the Premises or elsewhere and shall further indemnify and
hold harmless Lessor from and against any and all claims arising from any
breach or default in the performance of any obligation on Lessee's part to be
performed under the terms of this Lease, or arising from any negligence of the
Lessee, or any of the Lessee's agents, contractors, or employees, and from and
against all costs, attorney's fees, expenses and liabilities incurred in the
defense of any such claim or any action or proceeding brought thereon: and in
case any action or proceeding be brought against Lessor by reason of any such
claim. Lessee upon notice from Lessor shall defend the same at Lessee's
expense by counsel satisfactory to Lessor. Lessee, as a material part of the
consideration to Lessor, hereby assumes all risk of damage to property or
injury to persons, in, upon or about the Premises arising from any cause and
Lessee hereby waives all claims in respect thereof against Lessor.

         8.5. Exemption of Lessor from Liability. Lessee hereby agrees that
Lessor shall not be liable for injury to Lessee's business or any loss of
income therefrom or for damage to the goods, wares, merchandise or other
property of Lessee. Lessee's employees, invitees, customers, or any other
person in or about the Premises, nor shall Lessor be liable for injury to the
person of Lessee, Lessee's employees, agents or contractors, whether such
damage or injury is caused by or results from fire, steam, electricity, gas,
water or rain, or from the leakage, obstruction or other defects of pipes,
sprinklers, wires, appliances, plumbing, air conditioning or lighting
fixtures, or from any other cause, whether the said damage or injury results
from conditions, arising upon the Premises or upon other portions of the
building of which the Premises are a part, or from other sources or places,
and regardless of whether the cause of such damage or injury or the means of
repairing the same its inaccessible to Lessee, Lessor shall not be liable for
any damages arising from any act or neglect of any other tenant, if any, of
the building in which the Premises are located.

9.       Damage or Destruction.

         9.1 Partial Damage-Insured. Subject to the provisions of Paragraph
9.4, if the Premises are damaged and such damage was caused by a casualty
covered under an insurance policy required to be maintained pursuant to
Paragraph 8.2. Lessee shall at Lessee's expense repair such damage as soon as
reasonably possible and this Lessee shall continue in full force and effect.

         9.2      Partial Damage-Uninsured.  Subject to the provisions of
Paragraph 9.4, if at any time during the term hereof the Premises

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are damaged, except by a negligent or willful act of Lessee, and such damage
was caused by a casualty not covered under an insurance policy required to be
maintained by Lessee pursuant to Paragraph 8.2. Lessor may at Lessor's option
either (i) repair such damage as soon as reasonably possible at Lessee's
expense in which event this Lease shall continue in full force and effect, or
(ii) give written notice to Lessee within thirty (30) days after the date of
the occurrence of such damage of Lessor's intention to cancel and terminate
this Lease as of the date of the occurrence of such damage. In the event
Lessor elects to give such damage notice of Lessor's intention to cancel and
terminate this Lease, Lessee shall have the right within ten (10) days after
the receipt of such notice to give written notice to Lessor of Lessee's
intention to repair such damage at Lessee's expense, without reimbursement
from Lessor, in which event this Lease shall continue in full force and
effect, and Lessee shall proceed to make such repairs as soon as reasonably
possible. If Lessee does not give such notice within such 10 day period this
Lease shall be canceled and terminated as of the date of the occurrence of
such damage.

         9.3 Total Destruction. If at any time during the term hereof the
Premises are totally destroyed from any cause whether or not covered by the
insurance required to be maintained by Lessee pursuant to Paragraph 8.2
(including any total destruction required by any authorized public authority)
this Lease shall automatically terminate as of the date of such total
destruction.

         9.4 Damage Near End of Term. If the Premises are partially destroyed
or damaged during the last six months of the term of this Lease, Lessor may at
Lessor's option cancel and terminate this Lease as of the date of occurrence
of such damage by giving written notice to Lessee of Lessor's election to do
so within 30 days after the date of occurrence of such damage.

         9.5      Abatement of Rent; Lessee's Remedies.

                  (a) If the Premises are partially destroyed or damaged and
Lessor or Lessee repairs or restores them pursuant to the provisions of this
Article, the rent payable hereunder for the period during which such damage,
repair or restoration continues shall be abated in proportion to the degree to
which Lessee's use of the Premises is impaired. Except for abatement of rent,
if any, Lessee shall have no claim against Lessor for any damage suffered by
reason of any such damage, destruction, repair or restoration.

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                  (b) If Lessor shall be obligated to repair or restore the
Premises under the provisions of this Paragraph 9 shall not commence such
repair or restoration within 90 days after such obligations shall accrue,
Lessee may at Lessee's option cancel and terminate this Lease by giving Lessor
written notice of Lessee's election to do so at any time prior to the
commencement of such repair or restoration. In such event this Lease shall
terminate as of the date of such notice. Any abatement in rent shall be
computed as provided in Paragraph 9.5(a).

         9.6 Termination-Advance Payments. Upon termination of this Lease
pursuant to this Paragraph 9, an equitable adjustment shall be made concerning
advance rent and any advance payments made by Lessee to Lessor, Lessor shall,
in addition, return to Lessee so much of Lessee's security deposit as has not
theretofore been applied by Lessor.

10.      Real Property Taxes.

         10.1     Payment of Tax Increase.  Lessee shall pay all real
property taxes applicable to the Premises;

         10.2 Joint Assessment. If the Premises are not separately assessed,
Lessee's liability shall be an equitable proportion of the real property
leases for all of the land and improvements included within the tax parcel
assessed, such proportion to be determined by Lessor from the respective
valuations assigned in the assessor's work sheets of such other information as
may be reasonably suitable. Lessor's reasonable determination thereof, in good
faith, shall be conclusive.

         10.3     Personal Property Taxes.

                  (a) Lease shall pay prior to delinquency all taxes assessed
against and levied upon trade fixtures, furnishings, equipment and all other
personal property of Lease contained in the Premises or elsewhere. When
possible, Lessee shall cause said trade fixtures, furnishings, equipment and
all other personal property to be assessed and billed separately from the real
property of Lessor.

11.      [PARAGRAPH NOT LEGIBLE]

12.  Assignment and Subletting.

         12.1 Lessor's Consent Required. Lessee shall not voluntarily or by
operation of law assign, transfer, mortgage, sublet or otherwise transfer or
encumber all or any part of Lessee's interest in this Lease or in the
Premises, without

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Lessor's prior written consent, which Lessor shall not unreasonably withhold.
Any attempted assignment, transfer, mortgage, encumbrance or subletting
without such consent shall be void, and shall constitute a breach of this
Lease.

         12.2 No Release of Lessee. Regardless of Lessor's consent, no
subletting or assignment shall release Lessee of Lessee's obligation or alter
the primary liability of Lessee to pay the rent and to perform all other
obligations to be performed by Lessee hereunder. The acceptance of rent by
Lessor from any other person shall not be deemed to be a waiver by Lessor of
any provision hereof. consent to one assignment or subletting shall not be
deemed consent to any subsequent assignment or subletting.

         12.3 Attorney's Fees. In the event that Lessor shall consent to a
sublease or assignment under Paragraph 12.1, Lessee shall pay Lessor's
reasonable attorneys' fees not to exceed $100 incurred in connection with
giving such consent.

13.      Defaults; Remedies

         13.1 Defaults. The occurrence of any one or more of the following
events shall constitute a material default and breach of this Lease by Lessee:

                  (a)      The vacating or abandonment of the Premises by
Lessee.

                  (b) The failure by Lessee to make any payment of rent or any
other payment required to be made by Lessee hereunder, as and when due, where
such failure shall continue for a period of ___ days after written notice
thereof from Lessor or Lessee.

                  (c) The failure by Lessee to observe or perform any of the
covenants, conditions or provisions of this Lease to be observed or performed
by Lessee, other than described in paragraph (b) above, where such failure
shall continue for a period of 30 days after written notice hereof from Lessor
to Lessee: provided, however, that if the nature of Lessee's default is such
that more than 30 days are reasonably required for it cure, then Lessee shall
not be deemed to be in default if Lessee commenced such cure within said
30-day period and thereafter diligently prosecutes such cure to completion.

                  (d) (i) The making by Lessee of any general assignment, or
general arrangement for the benefit of creditors; (ii) the filing by or
against Lessee of a petition to have Lessee adjudged a bankrupt or a petition
for reorganization or

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arrangement under any law relating to bankruptcy unless, in the case of a
petition filed against Lessee, the same is dismissed within 60 days; (iii) the
appointment of a trustee or receiver to take possession of substantially all
of Lessee's assets located at the Premises or of Lessee's interest in this
Lease, where possession is not restored to Lessee within 30 days or (iv) the
attachment, execution or other judicial seizure of substantially all of
Lessee's assets located at the Premises or of Lessee's interest in this Lease,
where such seizure is not discharged within 30 days.

                  13.2 Remedies. In the event of any such material default or
breach by Lessee, Lessor may at any time thereafter, without notice or demand
and without limiting Lessor in the exercise of any right or remedy which
Lessor may have by reason of such default or breach:

                           (a)      Terminate Lessee's right to possession of
the Premises by any lawful means, in which case this Lease shall terminate and
Lessee shall immediately surrender possession of the Premises to Lessor. In
such event Lessor shall be entitled to recover from Lessee all damages
incurred by Lessor by reason of Lessee's default including, but not limited
to, the cost of recovering possession of the Premises; expenses of resetting,
including necessary renovation and alteration of the Premises, reasonable
attorney's fees, and any rest estate commission actually paid; the worth at
the time of award by the court having jurisdiction thereof of the amount by
which the unpaid rent for the balance of the term alter the time of such award
excess the amount of such rental loss for the same period that Lessee proves
could be reasonably avoided: that portion of the leasing commission paid by
Lessor pursuant to Article 15 applicable to the unexpired term of this Lease.
Unpaid installments of rent or other sums shall bear interest from the date
due at the rate of 10% per annum. In the event Lessee shall have abandoned the
Premises, Lessor shall have the option of (i) retaking possession of the
Premises and recovering from Lessee the amount specified in this Paragraph
13.2(a), or (ii) proceeding under Paragraph 13.2(b).

                  (b) Maintain Lessee's right to possession in which case this
Lease shall continue in effect whether or not Lessee shall have abandoned the
Premises. In such event Lessor shall be entitled to enforce all of Lessor's
rights and remedies under this Lease, Including the right to recover the rent
as it becomes due hereunder.

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                  (c) Pursue any other remedy now or hereafter available to
Lessor under the laws or judicial decisions of the State of California.

         13.3 Default by Lessor, Lessor shall not be in default unless Lessor
fails to perform obligations required of Lessor within a reasonable time, but
in no event later than thirty (30) days after written notice by Lessee to
Lessor and to the holder of any first mortgage or deed of trust covering the
Premises whose name and address shall have theretofore been furnished to
Lessee in writing, specifying wherein Lessor has failed to perform such
obligation: provided, however, that if the nature of Lessor's obligation is
such that more than thirty (30) days are required for performance than Lessor
shall not be in default if Lessor commences performance within such 30-day
period and thereafter diligently prosecutes the same to completion.

         13.4 Late Charges. Lessee hereby acknowledges that late payment by
Lessee to Lessor of rent and other sums due hereunder may cause Lessor to
incur late charges which may be imposed on Lessor by the terms of any mortgage
or trust deed covering the Premises. Accordingly, if any installment of rent
or any other sum due from Lessee shall not be received by Lessor or Lessor's
designee within ten (10) days after such amount shall be due. Lessee shall pay
to Lessor a late charge equal to the late charge imposed under any mortgage or
trust deed. Acceptance of such late charge by Lessor shall in no event
constitute a waiver of Lessee's default with respect, to such overdue amount,
nor prevent Lessor from exercising any of the other rights and remedies
granted hereunder.

14. Condemnation. If the Premises or any portion thereof are taken under the
power of eminent domain, or sold under the threat of the exercise of said
poser (all of which are herein called "condemnation:), this Lease shall
terminate as to the part so taken as of the date the condemning authority
takes title or possession, whichever first occurs. If more than 10% of the
floor area of the improvements on the premises, or more than 25% of the land
area of the Premises which is not occupied by any improvements, is taken by
condemnation, Lessee may, at Lessee's option, to be exercised in writing only
within ten (10) days after Lessor shall have given Lessee written notice of
such taking for in the absence of such notice, within ten (10 days after the
condemning authority shall have taken possession) terminate this Lease as of
the date the condemning authority takes such possession. If Lessee does not
terminate this Lease in accordance with the foregoing, this Lease shall remain
in full force and effect as to the effect as to the portion of the

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Premises remaining, except that the rent shall be reduced in the proportion
that the floor area taken bears to the total floor area of the building
situated on the Premises. Any award for the taking of all or any part of the
Premises under the power of eminent domain or any payment made under threat of
the exercise of such power shall be the property of Lessor, whether such award
shall be made as compensation for diminution in value of the leasehold or for
the taking of the fee, or as severance damages: provided, however, that Lessee
shall be entitled to any award for loss of or damage to Lessee's trade
fixtures and removable personal property. In the event that this Lessee is not
terminated by reason of such condemnation. Lessor shall, to the extent of
severance damages received by Lessor in connection with such condemnation,
repair any damage to the Premises caused by such condemnation except to the
extent that Lessee has been reimbursed therefor by the condemning authority,
Lessee shall pay any amount in excess of such severance damages required to
complete such repair.

15. Cancellation and/or Modification. This lease shall not be modified or
canceled without the express written consent of NatWest Bank, N.A., unless the
loan of $1,500,000 made to Jack C. Bendheim by NatWest Bank, N.A. on June 30,
1995 shall have been paid in full.

16.      General Provisions.

         16.1     Estoppel Certificate.

                  (a) Lessee shall at any time upon not less than ten (10)
days' prior written notice from Lessor execute, acknowledge and deliver to
Lessor a statement in writing (i) certifying that this Lease is unmodified and
in full force and effect for, if modified, stating the nature of such
modification and certifying that this Lease, as so modified, is in full force
and effect and the date to which the rent and other charges are paid in
advance, if any, and (ii) acknowledging that there are not, to Lessee's
knowledge, any uncured defaults on the part of Lessor hereunder, or specifying
such defaults if any are claimed. Any such statement may be conclusively
relied upon by any prospective purchaser or encumbrances of the Premises.

                  (b) Lessee's failure to deliver such statement within such
time shall be conclusive upon Lessee (i) that this Lessee is in full force and
effect, without modification except as may be represented by Lessor, (ii) that
there are no uncured defaults in Lessor's performance, and (iii) that not more
than one month's rent has been paid in advance.

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                  (c) If Lessor desires to finance or refinance the Premises,
or any part thereof, Lessee hereby agrees to deliver to any lender designated
by Lessor such financial statements of Lessee as may be reasonably required by
such lender. Such statements shall include the past three weeks financial
statements of Lessee. All such financial statements shall be received by
Lessor in confidence and shall be used only for the purposes herein set forth.

         16.2 Lessor's Liability. The term "Lessor" as used herein shall mean
only the owner or owners at the time in question of the fee title or a
lessee's interest in a ground lease of the Premises, and except as expressly
provided in Paragraph 15, in the even of any transfer of such title or
interest, Lessor herein named (and in case of any subsequent transfers the
then grantor) shall be relieved from and after the date of such transfer of
all liability as respects Lessor's obligations thereafter to be performed,
provided that any funds in the hands of Lessor or the then grantor at the time
of such transfer, in which Lessee has an interest, shall be delivered to the
grantee. The obligations contained in this Lease to be performed by the Lessor
shall, subject as aforesaid, be binding on Lessor's successors and assigns,
only during their respective periods of ownership.

         16.3 Severability. The invalidity of any provision of this Lease as
determined by a court of competent jurisdiction, shall in no way affect the
validity of any other provision hereof.

         16.4 Interest on Past-due Obligations. Except as expressly herein
provided, any amount due to Lessor not paid when due shall bear interest at
10% per annum from the dat due. Payment of such interest shall not excuse or
cure any default by Lessee under the Lease.

         16.5     Time of Essence. Time is of the essence.

         16.6     Captions.  Article and paragraph captions are not a
part hereof.

         16.7 Incorporation of Prior Agreements; Amendments. this Lease
contains all agreements of the parties with respect to any matter mentioned
herein. No prior agreement or understanding pertaining to any such matter
shall be effective. This Lease may be modified in writing only, signed by the
parties in interest at the time of the modification.

         16.8     Notices.  Any notice required or permitted to be given
hereunder shall be in writing and may be served personally or by

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regular mail, addressed to Lessor and Lessee respectively at the addresses set
forth after their signatures at the end of this Lease.

         16.9 Waivers. No waiver by Lessor of any provision hereof shall be
deemed a waiver of any other provision hereof or of any subsequent breach by
Lessee of the same or any other provision. Lessor's consent to or approval of
any act shall not be deemed to render unnecessary the obtaining of Lessor's
consent to or approval of any subsequent act by Lessee. The acceptance of rent
hereunder by Lessor shall not be a waiver of any preceding breach by Lessee of
any provision hereof, other than the failure of Lessee to pay the particular
rent so accepted, regardless of Lessor's knowledge of such preceding reach at
the time of acceptance of such rent.

         16.10 Recording. Lessee shall not record this Lease without Lessor's
prior written consent, and such recording shall, at the option of Lessor,
constitute a non-curable default of Lessee hereunder. Either party shall, upon
request of the other, execute, acknowledge and deliver to the other a "short
form" memorandum of this Lease for recording purposes.

         16.11 Holding Over. If Lessee remains in possession of the Premises
or any part thereof after the separation of the term hereof without the
express written consent of Lessor, such occupancy shall be a tenancy from
month to month at a rental in the amount of the last monthly rental plus all
other charges payable hereunder, and upon all the terms hereof applicable to a
month-to-month tenancy.

         16.12 Cumulative Remedies. No remedy or election hereunder shall be
deemed exclusive but shall, whenever possible, be cumulative with all other
remedies at law or in equity.

         16.13 Covenants and Conditions. Each provision of this Lease
performable by lessee shall be both a covenant and as condition.

         16.14 Binding Effect: choice of Law. Subject to any provisions hereof
restricting assignment or subletting by Lessee and subject to the provisions
of Paragraph 16.2, this Lease shall bind the parties, their personal
representatives, successors and assigns. This Lease shall be governed by the
Laws of the State of California.

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         16.15 Subordination.

                  (a) This Lease, at Lessor's option, shall be subordinate to
any ground lease, mortgage, deed of trust, or any other hypothecation for
security now or hereafter placed upon the real property of which the Premises
are a part and to any and all advances made on the security thereof and to all
renewals, modifications, consolidations, replacements and extensions thereof.
Notwithstanding such subordination. Lessee's right to quiet possession of the
Premises shall not be disturbed if Lessee is not in default and so long as
Lessee shall pay the rent and observe and perform all of the provisions of
this Lease, unless this Lease is otherwise terminated pursuant to its terms.
If any mortgagee, trustee or ground lessor shall elect to have this Lease
prior to the lien of its mortgage, deed of trust or ground lease, and shall
give written notice thereof to Lessee, this Lease shall be deemed prior to
such mortgage, deed of trust or ground lease, whether this Lease is dated
prior or subsequent to the date of said mortgage, deed of trust or ground
lease or the date of recording thereof.

                  (b) Lessee agrees to execute any documents required to
effectuate such subordination or to make this Lease prior to the lien of any
mortgage, deed of trust or ground lease, as the case may be, and failing to do
so within ten (10) days after written demand, does hereby make, constitute and
irrevocably appoint Lessor as Lessee's attorney in fact and in Lessee's name,
place and stead, to do so.

         16.16 Attorney's Fees. If either party or the broker named herein
brings an action to enforce the terms hereof or declare rights hereunder the
prevailing party in any such action, on trial or appeal, shall be entitled to
this reasonable attorney's fees to be paid by the losing party as fixed by the
court. The provisions of this paragraph shall inure to the benefit or the
broker named herein who seeks to enforce a right hereunder.

         16.17 Lessor's Access. Lessor and Lessor's agents shall have the
right to enter the Premises at reasonable times for the purpose of inspecting
the same, showing the same to prospective purchases, or lenders, and making
such alterations, repairs, or additions to the Premises or to the building of
which they are a part as lessor may deem necessary or desirable. Lessor may at
any time place on or about the Premises any ordinary "For Sale" signs and
Lessor may at any time during the last 120 days of the term hereof place on or
about the Premises any ordinary "For Lease" signs, all without rebate of rent
or liability to Lessee.

                                      14
<PAGE>

         16.18 Signs and Auctions. Lessee shall not place any sign upon the
Premises or conduct any auction thereon without Lessor's prior written
consent.

         16.19 Merger. The voluntary or other surrender of this Lease by
Lessee, or a mutual cancellation thereof, shall not work a merger, and shall,
at the option of Lessor, terminate all or any existing subtenancies or may, at
the option of Lessor, operate as an assignment to Lessor of any or all of such
subtenancies.

         16.20 Corporate Authority. If Lessee is a corporation, each
individual executing this Lease on behalf of said corporation represents and
warrants that he is duly authorized to execute and deliver this Lease on
behalf of said corporation.

         17.1 Payment of Taxes. Lessee shall pay the real property tax as
defined in paragraph 10.2, applicable to the Premises during the term of this
Lease. All such payments shall be made at least ten (10) days prior to the
delinquency date of such payment. Lessee shall promptly furnish Lessor with
satisfactory evidence that such taxes have been paid. If any such taxes paid
by Lessee shall cover any period of time prior to or after the expiration term
thereof, Lessee's share of such taxes shall be equitably prorated to cover
only the period of time within the tax fiscal year during which this Lease
shall be in effect and Lessor shall reimburse Lessee to the extent required.
If Lessee shall fail to pay any such taxes, Lessor shall have the right to pay
the same, in which case Lessee shall repay such amount to Lessor with Lessee's
next rent installments together with interest at the maximum rate then
allowable by law.

         17.2 Definitions of "Real Property Tax". As said herein, the term
"real Property tax" shall include any form of real estate tax or assessments,
general, special, ordinary or extraordinary, and any license fee, commercial
rental tax, improvement bond or bonds, levy or tax (other than interference,
personal income or estate taxes) imposed on the Premises by any authority
having the direct or indirect power to tax, including any city, state or
federal government, or any school, agricultural, sanitary, agricultural,
street, drainage or other improvement district thereof, as against any legal
or equitable interest of Lessor in the Premises or in the real property of
which the Premises are a part, as against Lessor's right to rent or other
income therefrom, and as against Lessor's business of leasing the Premises.
The term "real property tax" shall also include any tax, fee, levy, assessment
or charge (i) in substitution of, partially or totally, any tax, fee, levy,

                                      15
<PAGE>

assessment or charge herein above included within the definition of "real
property tax" or (ii) the nature of which was hereinbefore included with the
definition of "real property tax", or (iii) which is imposed for a service or
right not charged prior to June 1, 1978, or, if previously charged, has been
increased since June 1, 1978, or (iv) which is imposed as a result of a
transfer, either partial or total of Lessor's interest in the Premises or
which is added to a tax or charge hereinbefore included within the definition
of real property tax by reason of such transfer, or (v) which is imposed by
reason of this transaction, any modification or charges hereto or any
transfers hereof.

         The parties hereto have executed this Lease at the place and on the
dates specified immediately adjacent to their respective signatures.

FIRST DICE COMPANY, A CALIFORNIA LIMITED PARTNERSHIP
By:  WESTERN MAGNESIUM CORP., General Partner
By:  /s/ Jack C. Bendheim
     --------------------
Jack C. Bendheim, President
"Lessor"
Executed at Epstein, Epstein, Brown & Bosch on June 30, 1995.
Address:  245 Green Village Rd., Chatham, N.J. 07928-0901

PHIBRO-TECH, INC.
By:  /s/ Nathan Bistricer
     --------------------
V.P. CFO
"Lessee"
Executed at Epstein, Epstein, Brown & Bosch on June 30, 1995.
Address:  245 Green Village Rd., Chatham, N.J. 07928-0901

                                      16
<PAGE>

                                 DESCRIPTION

                                 SCHEDULE "A"

PARCEL 1 OF THE PARCEL MAP 16989, IN THE CITY OF SANTA FE SPRINGS, COUNTY OF
LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 181 PAGE 76 OF
PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

ALSO, THAT PORTION OF DICE ROAD AS SHOWN ON PARCEL MAP NO. 16589, IN THE CITY
OF SANTA FE SPRINGS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, FILED IN BOOK
181 PAGE 76 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID
COUNTY AS DESCRIBED IN THE DEED TO THE CITY OF SANTA FE SPRINGS, RECORDED JULY
26, 1968 AS INSTRUMENT NO. 2723 OF OFFICIAL RECORDS OF SAID COUNTY, BOUNDED IN
THE NORTH BY THE EASTERLY PROLONGATION OF THAT CERTAIN COURSE IN THE NORTHERLY
BOUNDARY OF SAID PARCEL MAP NO. 16989 AS HAVING A BEARING AND LENGTH OF "NORTH
78 DEGREES 25 MINUTES 00 SECONDS WEST 349.97 FEET" AND BOUNDED ON THE SOUTH BY
THE EASTERLY PROLONGATION OF THE SOUTHERLY LINE OF SAID PARCEL MAP NO. 16589.

EXCEPT THEREFROM THE PROPERTY HEREBY CONVEYED THAT PORTION THEREOF LYING BELOW
A DEPTH OF 500 FEET, MEASURED VERTICALLY, FROM THE CONTOUR OF THE SURFACE OF
SAID PROPERTY; HOWEVER, GRANTOR, OR ITS SUCCESSORS AND ASSIGNS, SHALL NOT HAVE
THE RIGHT FOR ANY PURPOSE WHATSOEVER TO ENTER UPON, INTO OR THROUGH THE
SURFACE OF SAID PROPERTY OR ANY PART THEREOF LYING BETWEEN SAID SURFACE AND
500 FEET BELOW SAID SURFACE, AS SHOWN IN DEED RECORDED OCTOBER 24, 1985 AS
INSTRUMENT NO. 85-1254948.

                                      17

<PAGE>
                            FIRST AMENDMENT TO LEASE

         THIS FIRST AMENDMENT TO LEASE is made and entered into this ____ day
of May, 1998 by and between First Dice Road Company, a California Limited
Partnership ("Landlord") and Phibro-Tech, Inc., a Delaware corporation
("Tenant")

         WHEREAS, Landlord and Tenant entered into a certain lease dated June
30, 1995 (the "Lease") pursuant to which Landlord leased to Tenant the Demised
Premises set forth on Schedule A annexed to the Lease; and

         WHEREAS, Landlord and Tenant have agreed to amend the Lease;

         NOW, THEREFORE, for $10.00 and other good and valuable consideration,
the receipt and legal adequacy of which are hereby acknowledged, the parties do
hereby agree as follows:

                  1. The term of the Lease, originally scheduled to expire on
June 29, 2005, is hereby extended through December 31, 2008;

                  2. Except as modified hereby, the Lease is unamended and
shall continue in full force and effect, and the parties hereto ratify all the
terms and conditions of the Lease; and

                  3. This First Amendment to Lease may be executed in
counterparts, each of which shall be deemed an original, but all of which shall
be deemed part of one and the same instrument.

                                           FIRST DICE COMPANY
Witness:                                   a California Limited Partnership

 /s/ Joseph M. Katzenstein                 By:      Western Magnesium Corp.
---------------------------                         its general partner

                                           By:  /s/ Jack C. Bendheim
                                                -------------------------------
                                                    Jack C. Bendheim

Witness:                                   PHIBRO-TECH, INC.

/s/ Joseph M. Katzenstein
---------------------------                By:  /s/ I. David Paley
                                                -------------------------------
                                                Name:  I. David Paley
                                                       ------------------------
                                                Title: CEO
                                                       ------------------------<PAGE>

                            MASTER LEASE AGREEMENT
                                    (Quasi)

       THIS MASTER LEASE AGREEMENT, dated as of 2/27/98 ("Agreement"), between
General Electric Capital Corporation, with an office at 44 Old Ridgebury Road,
Danbury, CT, 06810-5105 (hereinafter called, together with its successors and
assigns, if any, "Lessor"), and Philip Brothers Chemicals, Inc. & Phibro-Tech,
Inc. a corporation(s) organized and existing under the laws of the State of
New Jersey with their mailing address and chief place of business at One
Parker Plaza, Fort Lee, NJ 07024 (each jointly and severally being a "Lessee"
and collectively hereinafter called "Lessee").

                                  WITNESSETH:

I.    LEASING:
(a) Subject to the terms and conditions set forth below, Lessor agrees to
lease to Lessee, and Lessee agrees to lease from Lessor, the equipment
("Equipment") described in Annex A to any schedule hereto ("Schedule"). Terms
defined in a Schedule and not otherwise defined herein shall have the meanings
ascribed to them in such Schedule. (b) The obligation of Lessor to purchase
Equipment from the manufacturer or supplier thereof ("Supplier") and to lease
the same to Lessee under any Schedule shall be subject to receipt by Lessor,
prior to the Lease Commencement Date (with respect to such Equipment), of each
of the following documents in form and substance satisfactory to Lessor: (i) a
Schedule relating to the Equipment then to be leased hereunder, (ii) paid in
full invoice or other evidence of ownership of the Equipment, (iii) evidence
of insurance which complies with the requirements of Section IX and (iv) such
other documents as Lessor may reasonably request. As a further condition to
such obligations of Lessor, Lessee shall, upon delivery of such Equipment (but
not later than the Last Delivery Date specified in the applicable Schedule)
execute and deliver to Lessor a Certificate of Acceptance (in the form of
Annex C to the applicable Schedule) covering such Equipment. Lessor hereby
appoints Lessee its agent for inspection and acceptance of the Equipment from
the Supplier. Upon execution by Lessee of any Certificate of Acceptance, the
Equipment described thereon shall be deemed to have been delivered to, and
irrevocably accepted by, Lessee for lease hereunder.

II.   TERM, RENT AND PAYMENT:
(a) The rent payable hereunder and Lessee's right to use the Equipment shall
commence on the date of execution by Lessee of the Certificate of Acceptance
for such Equipment ("Lease Commencement Date"). The term of this Agreement
shall be the period specified in the applicable Schedule. If any term is
extended, the word "term" shall be deemed to refer to all extended terms, and
all provisions of this Agreement shall apply during any extended terms, except
as may be otherwise specifically provided in writing. (b) Rent shall be paid
to Lessor at its address stated above, except as otherwise directed by Lessor.
Payments of rent shall be in the amount set forth in, and due in accordance
with, the provisions of the applicable Schedule. If one or more Advance
Rentals are payable, such Advance Rental shall be (a) set forth on the
applicable Schedule, (ii) due upon acceptance by Lessor of such Schedule, and
(iii) when received by Lessor, applied to the first rent payment and the
balance, if any, to the final rental payment(s) under such Schedule. In no
event shall any Advance Rental or any other rent payments be refunded to
Lessee. If rent is not paid within ten days of its due date, Lessee agrees to
pay a late charge of five cents ($0.05) per dollar on, and in addition to, the
amount of such rent but not exceeding the lawful maximum, if any.

III.  TAXES:
Lessee shall have no liability for taxes imposed by the United States of
America or any State or political subdivision thereof which are on or measured
by the net income of Lessor. Lessee shall report (to the extent that it is
legally permissible) and pay promptly all other taxes, fees and assessments
due, imposed, assessed or levied against any Equipment (or the purchase,
ownership, delivery, leasing, possession, use or operation thereof), this
Agreement (or any rentals or receipts hereunder), any Schedule, Lessor or
Lessee by any foreign, federal, state or local government or taxing authority
during or

<PAGE>

related to the term of this Agreement including, without limitation, all
license and registration fees, and all sales, use, personal property, excise,
gross receipts, franchise, stamp or other taxes, imposts, duties and charges,
together with any penalties, fines or interest thereon (all hereinafter called
"Taxes"). Lessee shall (i) reimburse Lessor upon receipt of written request
for reimbursement for any Taxes charged to or assessed against Lessor, (ii) on
request of Lessor, submit to Lessor written evidence of Lessee's payment of
Taxes, (iii) send a copy thereof to Lessor.

IV.   REPORTS:
(a) Lessee will notify Lessor in writing, within ten days after any tax or
other lien shall attach to any Equipment, of the full particulars thereof and
of the location of such Equipment on the date of such notification. (b) Lessee
will within 90 days of the close of each fiscal year of Lessee, deliver to
Lessor, Lessee's balance sheet and profit and loss statement, certified by a
recognized firm of certified public accountants. Upon request Lessee will
deliver to Lessor quarterly, within 90 days of the close of each fiscal
quarter of Lessee, in reasonable detail, copies of Lessee's quarterly
financial report certified by the chief financial officer of Lessee. (c)
Lessee will permit Lessor to inspect any Equipment during normal business
hours. (d) Lessee will keep the Equipment at the Equipment Location (specified
in the applicable Schedule) and will promptly notify Lessor of any relocation
of Equipment. Upon the written request of Lessor, Lessee will notify Lessor
forthwith in writing of the location of any Equipment as of the date of such
notification. (e) Lessee will promptly and fully report to Lessor in writing
if any Equipment is lost or damaged (where the estimated repair costs would
exceed 10% of its then fair market value), or is otherwise involved in an
accident causing personal injury or property damage. If within 60 days after
any request by Lessor, Lessee will furnish a certificate of an authorized
officer of Lessee stating that he has reviewed the activities of Lessee and
that, to the best of his knowledge, there exists no default (as described in
Section XI) or event which with notice or lapse of time (or both) would become
such a default.

V. DELIVERY, USE AND OPERATION:
(a) All Equipment shall be shipped directly from the Supplier to Lessee. (b)
Lessee agrees that the Equipment will be used by Lessee solely in the conduct
of its business and in a manner complying with all applicable federal, state,
and local laws and regulations. (c) LESSEE SHALL NOT ASSIGN, MORTGAGE, SUBLET
OR HYPOTHECATE ANY EQUIPMENT, OR THE INTEREST OF LESSEE HEREUNDER, NOR SHALL
LESSEE REMOVE ANY EQUIPMENT FROM THE CONTINENTAL UNITED STATES, WITHOUT THE
PRIOR WRITTEN CONSENT OF THE LESSOR. (d) Lessee will keep the Equipment free
and clear of all liens and encumbrances other than those which are granted in
favor of or result from acts of Lessor.

VI.  SERVICE:
(a) Lessee will, at its sole expense, maintain each unit of Equipment in good
operating order, repair, condition and appearance in accordance with
manufacturer's recommendations, normal wear and tear excepted. Lessee shall,
if at any time requested by Lessor, affix in a prominent position on each unit
of Equipment plates, tags or other identifying labels showing ownership
thereof by Lessee and Lessor's security interest therein. (b) Lessee will not,
without the prior consent of Lessor, affix or install any accessory, equipment
or device on any Equipment if such addition will impair the originally
intended function or use of such Equipment. All additions, repairs, parts,
supplies, accessories, equipment and devices furnished, attached or affixed to
any Equipment which are not readily removable shall be made only in compliance
with applicable law, and shall become subject to the lien of Lessor. Lessee
will not, without the prior written consent of Lessor and subject to such
conditions as Lessor may impose for its protection, affix or install any
Equipment to or in any other personal or real property. (c) Any alterations or
modifications to the Equipment that may, at any time during the term of this
Agreement, be required to comply with any applicable law, rule or regulation
shall be made at the expense of Lessee.

VII.  STIPULATED LOSS VALUE:
Lessee shall promptly and fully notify Lessor in writing if any unit of
Equipment shall be or become worn out, lost, stolen, destroyed, irreparably
damaged in the reasonable

<PAGE>

determination of Lessee, or permanently rendered unfit for use from any cause
whatsoever (such occurrences being hereinafter called "Casualty Occurrences").
On the rental payment date next succeeding a Casualty Occurrence (the "Payment
Date"), Lessee shall pay Lessor the sum of (x) the Stipulated Loss Value of
such unit calculated as of the rental payment date next preceding such
Casualty Occurrence ("Calculation Date"); and (y) all rental and other amounts
which are due hereunder as of the Payment Date. Upon payment of all sums due
hereunder, the term of this lease as to such unit shall terminate and (except
in the case of the loss, theft or complete destruction of such unit) Lessor
shall be entitled to recover possession of such unit.

VIII.  LOSS OR DAMAGE:
Lessee hereby assumes and shall bear the entire risk of any loss, theft,
damage to, or destruction of, any unit of Equipment from any cause whatsoever
from the time the Equipment is shipped to Lessee.

IX. INSURANCE:
Lessee agrees, at its own expense, to keep all Equipment insured for such
amounts and against such hazards as Lessor may require, including, but not
limited to, insurance for damage to or loss of such Equipment and liability
coverage for personal injuries, death or property damage, with Lessor named as
additional insured and with a loss payable clause in favor of Lessor, as its
interest may appear, irrespective of any breach of warranty or other act or
omission of Lessee. The insurance shall provide (i) liability coverage in an
amount equal to at least ONE MILLION U.S. DOLLARS ($1,000.000.00) total
liability per occurrence, and (ii) casualty/property damage coverage in an
amount equal to the higher of the Stipulated Loss value or the full
replacement cost of the Equipment, or at such other amounts as may be required
by Lessor All such policies shall be with companies, and on terms,
satisfactory to Lessor. Lessee agrees to deliver to Lessor evidence of
insurance satisfactory to Lessor. No insurance shall be subject to any
co-insurance clause. Lessee hereby appoints Lessor as Lessee's
attorney-in-fact to make proof of loss and claim for insurance, and to make
adjustments with insurers and to receive payment of and execute or endorse all
documents, checks or drafts in connection with payments made as a result of
such insurance policies. Any expense of Lessor in adjusting or collecting
insurance shall be borne by Lessee. Lessee will not make adjustments with
insurers except (i) with respect to claims for damage to any unit of Equipment
where the repair costs do not exceed 10% of such unit's fair market value, or
(ii) with Lessor's written consent. Said policies shall provide that the
insurance may not be altered or canceled by the insurer until after thirty
(30) days written notice to Lessor. Lessor may, at its option, apply proceeds
of insurance, in whole or in part, to (i) repair or replace Equipment or any
portion thereof, or (ii) satisfy any obligation of Lessee to Lessor hereunder.

X.     RETURN OF EQUIPMENT:
(a) Upon any expiration or termination of this Agreement or any Schedule,
Lessee shall promptly, at its own cost and expense: (i) perform any testing
and repairs required to place the affected units of Equipment in the same
condition and appearance as when received by Lessee (reasonable wear and tear
excepted) and in good working order for their originally intended purpose;
(ii) if reinstallation, disassembly or crating is required, cause such units
to be reinstalled, disassembled and crazed by an authorized manufacturer's
representative or such other service person as is satisfactory to Lessor, and
(iii) return such units to a location within the continental United States as
Lessor shall direct. (b) Until Lessee has fully complied with the requirements
of Section X(a) above, Lessee's rent payment obligation and all other
obligations under this Agreement shall continue from month to month
notwithstanding any expiration or termination of the lease term. Lessor may
terminate such continued leasehold interest upon ten (10) days notice to
Lessee.

XI.    DEFAULT:
(a) Lessor may in writing declare this Agreement in default if Lessee breaches
its obligation to pay rent or any other sum when due and fails to cure the
breach within ten (10) days; Lessee breaches any of its insurance obligations
under Section I; Lessee breaches any of its other obligations to Lessor
hereunder or under any instrument, document or agreement between Lessor and
Lessee and fails to cure that breach within

<PAGE>

thirty (30) days after written notice thereof; any representation or warranty
made by Lessee in connection with this Agreement shall be false or misleading
in any material respect; Lessee becomes insolvent or ceases to do business as
a going concern; any Equipment is illegally used; or a petition is filed by or
against Lessee under any bankruptcy or insolvency laws. Such declaration shall
apply to all Schedules except as specifically excepted by Lessor. (b) After
default, at the request of Lessor, Lessee shall comply with the provisions of
Section X(a). Lessee hereby authorizes Lessor to enter, with or without legal
process, any premises where any Equipment is believed to be and take
possession thereof. Lessee shall, without further demand, forthwith pay to
Lessor (i) as liquidated damages for loss of a bargain and not as a penalty,
the Stipulated Loss Value of the Equipment (calculated as of the rental next
preceding the declaration of default), and (ii) all rentals and other sums
then due hereunder. Lessor may, but shall not be required to, sell Equipment
at private or public sale, in bulk or in parcels, with or without notice, and
without having the Equipment present at the place of sale; or Lessor may, but
shall not be required to, lease, otherwise dispose of or keep idle all or part
of the Equipment; and Lessor may use Lessees, premises for any or all of the
foregoing without liability for rent, costs, damages or otherwise. The
proceeds of sale, lease or other disposition, if any, shall be applied in the
following order of priorities: (1) to pay all of Lessor's costs, charges and
expenses incurred in taking, removing, holding, repairing and selling, leasing
or otherwise disposing of Equipment; then, (2) to the extent not previously
paid by Lessee, to pay Lessor all sums due from Lessee hereunder; then (3) to
reimburse to Lessee any sums previously paid by Lessee as liquidated damages;
and (4) any surplus shall be retained by Lessor. Lessee shall pay any
deficiency in (1) and (2) forthwith. (c) The foregoing remedies are
cumulative, and any or all thereof may be exercised in lieu of or in addition
to each other or any remedies at law, in equity, or under statute. Lessee
waives notice of sale or other disposition (and the time and place thereof),
and the manner and place of any advertising. Lessee shall pay Lessor's actual
attorney's fees incurred in connection with the enforcement, assertion,
defense or preservation of Lessor's rights and remedies hereunder, or if
prohibited by law, such lesser sum as may be permitted. Waiver of any default
shall not be a waiver of any other or subsequent default. Any default under
the terms of this or any other agreement between Lessor and Lessee may be
declared by Lessor a default under this and any such other agreement.

XII.   ASSIGNMENT:
Lessor may, without the consent of Lessee, assign this Agreement or any
Schedule. Lessee agrees that if Lessee receives written notice of an
assignment from Lessor, Lessee will pay all rent and other amounts payable
under any assigned Equipment Schedule to such assignee or as instructed by
Lessor. Lessee further agrees to confirm in writing receipt of a notice of
assignment as may be reasonably requested by assignee. Lessee hereby waives
and agrees not to assert against any such assignee any defense, set-off,
recoupment claim or counterclaim which Lessee has or may at any time have
against Lessor for any reason whatsoever.

XIII. NET LEASE; NO SET-OFF, ETC:
This Agreement is a net lease. Lessee's obligation to pay rent and other
amounts due hereunder shall be absolute and unconditional. Lessee shall not be
entitled to any abatement or reductions of, or set-offs against, said rent or
other amounts, including, without limitation, those arising or allegedly
arising out of claims (present or future, alleged or actual, and including
claims arising out of strict tort or negligence of Lessor) of Lessee against
Lessor under this Agreement or otherwise. Nor shall this Agreement terminate
or the obligations of Lessee be affected by reason of any defect in or damage
to, or loss of possession, use or destruction of, any Equipment from
whatsoever cause. It is the intention of the parties that rents and other
amounts due hereunder shall continue to be payable in all events in the manner
and at the times set forth herein unless the obligation to do so shall have
been terminated pursuant to the express terms hereof.

XIV.   INDEMNIFICATION:
(a)      Lessee hereby agrees to indemnify, save and keep harmless Lessor, its
agents,

<PAGE>

employees, successors and assigns from and against any and all losses,
damages, penalties, injuries, claims, actions and suits, including legal
expenses, of whatsoever kind and nature, in contract or tort, whether caused
by the active or passive negligence of Lessor or otherwise, and including, but
not limited to, Lessor's strict liability in tort, arising out of (i) the
selection, manufacture, purchase, acceptance or rejection of Equipment, the
ownership of Equipment during the term of this Agreement, and the delivery,
lease, possession, maintenance, uses, condition, return or operation of
Equipment (including, without limitation, latent and other defects, whether or
not discoverable by Lessor or Lessee and any claim for patent, trademark,
copyright infringement or environmental damage) or (ii) the condition of
Equipment sold or disposed of after use by Lessee, any sublease or employees
of Lessee. Lessee shall, upon request, defend any actions based on, or arising
out of, any of the foregoing. (b) All of Lessor's rights, privileges and
indemnities contained in this Section XIV shall survive the expiration or
other termination of this Agreement and the rights, privileges and indemnities
contained herein are expressly made for the benefit of and shall be
enforceable by Lessor, its successors and assign.

XV.     DISCLAIMER:
LESSEE ACKNOWLEDGES THAT IT HAS SELECTED THE EQUIPMENT WITHOUT ANY ASSISTANCE
FROM LESSOR, ITS AGENTS OR EMPLOYEES. LESSOR DOES NOT MAKE, HAS NOT MADE, NOR
SHALL BE DEEMED TO MAKE OR HAVE MADE, ANY WARRANTY OR REPRESENTATION, EITHER
EXPRESS OR IMPLIED, WRITTEN OR ORAL, With RESPECT TO THE EQUIPMENT LEASED
HEREUNDER OR ANY COMPONENT THEREOF, INCLUDING, WITHOUT LIMITATION, ANY
WARRANTY AS TO DESIGN, COMPLIANCE WITH SPECIFICATIONS, QUALITY OF MATERIALS OR
WORKMANSHIP, MERCHANTABILITY, FITNESS FOR ANY PURPOSE, USE OR OPERATION,
SAFETY, PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT, OR TITLE. All such risks,
as between Lessor and Lessee, are to be borne by Lessee. Without limiting the
foregoing, Lessor shall have no responsibility or liability to Lessee or any
other person with respect to any of the following, regardless of any
negligence of Lessor (i) any liability, loss or damage caused or alleged to be
caused directly or indirectly by any Equipment, any inadequacy thereof, any
deficiency or defect (latent or otherwise) therein, or any other circumstance
in connection therewith; (ii) the use, operation or performance of any
Equipment or any risks relating thereto; (iii) any interruption of service,
loss of business or anticipated profits or consequential damages; or (iv) the
delivery, operation, servicing, maintenance, repair, improvement or
replacement of any Equipment. If, and so long as, no default exists under this
Lease, Lessee shall be, and hereby is, authorized during the term of this
Lease to assert and enforce, at Lessee's sole cost and expense, from time to
time, in the name of and for the account of Lessor and/or Lessee, as their
interests may appear, whatever claims and rights Lessor may have against any
Supplier of the Equipment.

XVI.    REPRESENTATIONS AND WARRANTIES OF LESSEE:
Lessee hereby represents and warrants to Lessor that on the date hereof and on
the date of execution of each Schedule: (a) Lessee has adequate power and
capacity to enter into, and perform under, this Agreement and all related
documents (together, the "Documents") and is duly qualified to do business
wherever necessary to carry on its present business and operations, including
the jurisdiction(s) where the Equipment is or is to be located. (b) The
Documents have been duly authorized, executed and delivered by Lessee and
constitute valid, legal and binding agreements, enforceable in accordance with
their terms, except to the extent that the enforcement of remedies therein
provided may be limited under applicable bankruptcy and insolvency laws. (c)
No approval, consent or withholding of objections is required from any
governmental authority or instrumentality with respect to the entry into or
performance by Lessee of the Documents except such as have already been
obtained. (d) The entry into and performance by Lessee of the Documents will
not: (i) violate any judgment, order, law or regulation applicable to Lessee
or any provision of Lessee's Certificate of Incorporation or by-laws; or (ii)
result in any breach of, constitute a default under or result in the creation
of any lien, charge, security interest or other encumbrance upon any Equipment
pursuant to any indenture, mortgage, deed of trust, bank loan or credit
agreement or other instrument (other than this Agreement) to which Lessee is a
party. (e) There are no suits or proceedings pending or threatened in court or
before any commission, board or other administrative agency against or
affecting Lessee, which will have a material adverse effect on the ability of
Lessee to fulfill its obligations under this Agreement. (F) The Equipment
accepted under any Certificate of Acceptance is and will remain tangible
personal property. (g) Each

<PAGE>

Balance Sheet and Statement of Income delivered to Lessor has been prepared in
accordance with generally accepted accounting principles, and since the date
of the most recent such Balance Sheet and Statement of Income, there has been
no material adverse change. (h) Lessee is and will be at all times validly
existing and in good standing under the laws of the State of its incorporation
(specified in the first sentence of this Agreement). (i) The Equipment will at
all times be used for commercial or business purposes.

XVII. OWNERSHIP FOR TAX PURPOSES, GRANT OF SECURITY INTEREST; USURY SAVINGS:
(a) For income tax purposes, the parties hereto agree that it is their mutual
intention that Lessee shall be considered the owner of the Equipment.
Accordingly, Lessor agrees (i) to treat Lessee as the owner of the Equipment
on its federal income tax return, (ii) not to take actions or positions
inconsistent with such treatment on or with respect to its federal income tax
return, and (iii) not to claim any tax benefits available to an owner of the
Equipment on or with respect to its federal income tax return. The foregoing
undertakings by Lessor shall not be violated by Lessor's taking a tax position
inconsistent with the forgoing sentence to the extent such a position is
required by law or is taken through inadvertence so long as such inadvertent
tax position is reversed by Lessor promptly upon its discovery. Lessor shall
in no event be liable to Lessee if Lessee fails to secure any of the tax
benefits available to the owner of the Equipment. (b) Lessee hereby grants to
Lessor a first security interest in the Equipment, together with all
additions, attachments, accessions, accessories and accessions thereto whether
or not furnished by the Supplier of the Equipment and any and all
substitutions, replacements or exchanges therefor, and any and all insurance
and/or other proceeds of the property in and against which a security interest
is granted hereunder. Notwithstanding anything to the contrary contained
elsewhere in this Agreement, to the extent that Lessor asserts a purchase
money security interest in any items of Equipment ("PMSI Equipment"): (i) the
PMSI Equipment shall secure only those sums which have been advanced by Lessor
for the purchase of the PMSI Equipment, or the acquisition of rights therein,
or the use thereof (the "PMSI Indebtedness"), and (ii) no other Equipment
shall secure the PMSI Indebtedness. (c) It is the intention of the parties
hereto to comply with any applicable usury laws to the extent that any
Schedule is determined to be subject to such laws, accordingly, it is agreed
that, notwithstanding any provision to the contrary in any Schedule or the
Lease, in no event shall any Schedule require the payment or permit the
collection of interest in excess of the maximum amount permitted by applicable
law. If any such excess interest is contracted for, charged or received under
any Schedule or the Lease, or in the event that all of the principal balance
shall be prepaid so that under any of such circumstances the amount of
interest contracted for, charged or received under any Schedule or the Lease
shall exceed the maximum amount of interest permitted by applicable law, then
in such event (a) the provisions of this paragraph shall govern and control,
(b) neither Lessee nor any other person or entity now or hereafter Liable for
the payment hereof shall be obligated to pay the amount of such interest to
the extent that it is in excess of the maximum amount of interest permitted by
applicable law, (c) any such excess which may have been collected shall be
either applied as a credit against the then unpaid principal balance or
refunded to Lessee, at the option of the Lessor, and (d) the effective rate of
interest shall be automatically reduced to the maximum lawful contract rate
allowed under applicable law as now or hereafter construed by the courts
having jurisdiction thereof. It is further agreed that without limitation of
the foregoing, all calculations of the rate of interest contracted for,
charged or received under any Schedule or the Lease which are made for the
purpose of determining whether such rate exceeds the maximum lawful contract
rate, shall be made, to the extent permitted by applicable law, by amortizing,
prorating, allocating and spreading in equal parts during the period of the
full stated term of the indebtedness evidenced hereby, all interest at any
time contracted for, charged or received from Lessee or otherwise by Lessor in
connection with such indebtedness; provided, however, that if any applicable
state law is amended or the law of the United States of America preempts any
applicable state law, so that it becomes lawful for Lessor to receive a
greater interest per annum rate than is presently allowed, the Lessee agrees
that, on the effective date of such amendment or preemption, as the case may
be, the lawful maximum hereunder shall be increased to the maximum interest
per annum rate allowed by the amended state law or the law of the United
States of America.

<PAGE>

XVIII. EARLY TERMINATION:
(a) On or after the First Termination Date (specified in the applicable
Schedule), Lessee may, so long as no default exists hereunder, terminate this
Agreement as to all (but not less than all) of the Equipment on such Schedule
as of a Rent Payment Date ("Termination Date") upon at least 90 days prior
written notice to Lessor. (b) Lessee shall, and Lessor may, solicit cash bids
for the Equipment on an AS IS, WHERE IS BASIS without recourse to or warranty
from Lessor, express or implied ("AS IS BASIS"). Prior to the Termination
Date, Lessee shall (i) certify to Lessor any bids received by Lessee and (ii)
pay to Lessor (A) the Termination Value (calculated as of the rental due on
the Termination Date) for the Equipment, and (B) all rent and other sums due
and unpaid as of the Termination Date. (c) Provided that all amounts due
hereunder have been paid on the Termination Date, Lessor shall (i) sell the
Equipment on an AS IS BASIS for cash to the highest bidder and (ii) refund the
proceeds of such sale (net of any related expenses) to Lessee up to the amount
of the Termination Value. If such sale is not consummated, no termination
shall occur and Lessor shall refund the Termination Value (less any expenses
incurred by Lessor) to Lessee. (d) Notwithstanding the foregoing, Lessor may
elect by written notice, at any time prior to the Termination Date, not to
sell the Equipment. In that event, on the Termination Date Lessee shall (i)
return the Equipment (in accordance with Section X) and (ii) pay to Lessor all
amounts required under Section XVIII(b) less the amount of the highest bid
certified by Lessee to Lessor.

XIX. EARLY PURCHASE OPTION:
(a) Provided that the Lease has not been earlier terminated and provided
further that Lessee is not in default under the Lease or any other agreement
between Lessor and Lessee. Lessee may, UPON AT LEAST 30 DAYS BUT NO MORE THAN
270 DAYS PRIOR WRITTEN NOTICE TO LESSOR OF LESSEE'S IRREVOCABLE ELECTION TO
EXERCISE SUCH OPTION, purchase all (but not less than all) of the Equipment
listed and described in this schedule on any Rent Payment Date following the
First Termination Date as set forth in this Schedule, and prior to the date
which is the scheduled expiration of this Lease, (the "Early Purchase Date")
for a price equal to (i) the Termination Value (calculated as of the Early
Purchase Date) for the Equipment, and (ii) all rent and other sums due and
unpaid as of the Purchase Date (the "Early Option Price"), plus all applicable
sales taxes on an AS IS BASIS. (The purchase option granted by this subsection
shall be referred to herein as the "Early Purchase Option"). (b) If Lessee
exercises its Early Purchase Option with respect to the Equipment leased
hereunder, then on the Early Purchase Date, Lessee shall pay to Lessor any
rent and other sums due and unpaid on the Early Purchase Date and Lessee shall
pay the Early Option Price, plus all applicable sales taxes, to Lessor in
cash.

XX. PURCHASE OPTION:
a. So long as no default exists hereunder and the lease has not been earlier
terminated, Lessee may at lease expiration purchase all (but not less than
all) of the Equipment in any Schedule on an AS IS, WHERE IS BASIS for cash
equal to the amount indicated in such Schedule (the "Option Payment"). The
Option Payment shall be due and payable in immediately available funds on the
Expiration Date. (b) Lessee shall be deemed to have waived this option unless
it provides Lessor with written notice of its irrevocable election to exercise
the same not less than 90 days prior to the Expiration Date.

XXI. MISCELLANEOUS:
(a) LESSEE HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR INDIRECTLY,
THIS LEASE, ANY OF THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN LESSEE AND
LESSOR RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED
TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN LESSEE
AND LESSOR. The scope of this waiver is intended to be all encompassing of any
and all disputes that may be filed in any court (including, without
limitation, contract claims, tort claims, breach of duty claims, and all other
common law and statutory claims). THIS WAIVER IS IRREVOCABLE MEANING THAT IT
MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO
ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
LEASE, ANY RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING
TO THIS TRANSACTION OR ANY

<PAGE>

RELATED TRANSACTION. In the event of litigation. this Lease may be filed as a
written consent to a trial by the court (b) Unless and until Lessee exercises
its rights under Section XIX above, nothing herein contained shall give or
convey to Lessee any right, title or interest in and to any Equipment except
as a lessee. Any cancellation or termination by Lessor, pursuant to the
provision of this Agreement. Any Schedule, supplement or amendment hereto, or
the lease of any Equipment hereunder, shall not release Lessee from any then
outstanding obligations to Lessor hereunder. All Equipment shall as all times
remain personal property of Lessor regardless of the degree of its annexation
to any real property and shall not by reason of any installation in, or
affixation to, real or personal property become a part thereof. (c) Time is of
the essence of this Agreement, Lessor's failure at any time to require strict
performance by Lessee of any of the provisions hereof shall not waive or
diminish Lessor's right thereafter to demand strict compliance therewith.
Lessee agrees, upon Lessor's request, to execute any instrument necessary or
expedient for filing, recording or perfecting the interest of Lessor. All
notices required to be given hereunder shall be deemed adequately given if
sent by registered or certified mail to the addressee at its address stated
herein, or at such other place as such addressee may have designated in
writing. This Agreement and any Schedule and Annexes thereto constitute the
entire agreement of the parties with respect to the subject master hereof. NO
VARIATION OR MODIFICATION OF THIS AGREEMENT OR ANY WAIVER OF ANY OF ITS
PROVISIONS OR CONDITIONS, SHALL BE VALID UNLESS IN WRITING AND SIGNED BY AN
AUTHORIZED REPRESENTATIVE OF THE PARTIES HERETO.

                                                        /s/                 /s/
                                                        -----------------------
                                                          initials

(d) In case of a failure of Lessee to comply with any provision of this
Agreement, Lessor shall have the right, but shall not be obligated to, effect
such compliance, in whole or in part; and all moneys spent and expenses and
obligations incurred or assumed by Lessor in effecting such compliance shall
constitute additional rent due to Lessor within five days after the date
Lessor sends notice to Lessee requesting payment. Lessor's effecting such
compliance shall not be a waiver of Lessee's default. (e) Any rent or other
amount not paid to Lessor when due hereunder shall bear interest, both before
and after any judgment or termination hereof, at the lesser of eighteen
percent per annum or the maximum rate allowed by law. Any provisions in this
Agreement and any Schedule which are in conflict with any statute, law or
applicable rule shall be deemed omitted, modified or altered to conform
thereto.

IN WITNESS WHEREOF, Lessee and Lessor have caused this Agreement to be
executed by their duly authorized representatives as of the date first above
written.

LESSOR:                                                       LESSEE:

General Electric Capital Corporation        Philip Brothers Chemicals, Inc.

By: /s/ James R. Giaquinto                  By: /s/ Joseph M Katzenstein
    --------------------------------            ------------------------------

Name: James R. Giaquinto                    Name:  J. Katzenstein
      -----------------------------                ---------------------------

Title: Risk Analyst                         Title:  Treas
                                                   ---------------------------

                                            LESSEE:

                                            Phibro-Tech, Inc.

                                            By: /s/ Joseph M. Katzenstein
                                                ------------------------------

                                           Name:  J. Katzenstein
                                                   ---------------------------

                                            Title:  Treas
                                                    --------------------------

<PAGE>

                               VEHICLE SCHEDULE
                                SCHEDULE NO. 1
                       DATED THIS 2/27/98
                       TO MASTER LEASE AGREEMENT
                       DATED AS OF 2/27/98

Lessor & Mailing Address:

General Electric Capital Corporation
Old Ridgebury Road
Danbury, CT 06810-5105

Lessee & Mailing Address:

Philip Brothers Chemicals, Inc.
One Parker Plaza
Fort Lee, NJ 07024

        &

Phibro-Tech,Inc.44
One Parker Plaza
Fort Lee, NJ07024

Capitalized terms not defined herein shall have the meanings assigned to them
in the Master Lease Agreement identified above ("Agreement"; said Agreement
and this Schedule being collectively referred to as "Lease").

A.      Equipment

        Pursuant to the terms of the Lease, Lessor agrees to acquire and lease
        to Lessee the Equipment listed on Annex A attached hereto and made a
        part hereof.

B.      Financial Terms

        1.   Advance Rent (if any): $ Not Applicable.

        2.   Capitalized Lessor's Cost: $339,039.18.

        3.   Basic Terms, Lease Rate Factor: 2.063844%.

        4.   Daily Lease Rate Factor: 068795%.

        5.   Basic Term (No. of Months): 60.

        6.   Basic Term Commencement Date: 2/27/98.

        7.   Equipment Location: Various locations.

        8.   Lessee Federal Tax ID No: 131840-497.

        9.   Supplier: Acro Trailer, Comptank Corp., Freuhauf
                       Trailer Service, Inc., Poly- Coat Systems, Inc.,
                       Sterling Fluid Systems, Inc.

        10.  Last Delivery Date: 2/27/98

        11.  First Termination Date: Thirty-six (36) months after the Basic
        Term Commencement Date.

        12.  Option Payment $1.00

        13.  Interest Rate: 8.77% per annum.

        14.  Lessee agrees and acknowledges that the Capitalized Lessor's Cost
        of the Equipment as stated on the Schedule is equal to the fair market
        value of the Equipment on the date hereof.

<PAGE>

C.      Term and Rent

        1 Interim Rent. For the period from and including the Lease
        Commencement Date to the Basic Term Commencement Date ("Interim
        Period"), Lessee shall pay as rent ("Interim Rent") for each unit of
        Equipment, the product of the Daily Lease Rate Factor times the
        Capitalized Lessor's Cost of such unit times the number of days in the
        Interim Period. Interim Rent shall be due on Not Applicable

        2 Basic Term Rent. Commencing on 4/1/98 and on the same day of each
        month thereafter (each, a "Rent Payment Date") during the Basic Term,
        Lessee shall pay as rent ("Basic Term Rent") the product of the Basic
        Term, Lease Rate Factor times the Capitalized Lessor's Cost of all
        Equipment on this Schedule.

        3 Adjustment to Capitalized Lessor's Cost. Lessee hereby irrevocably
        authorizes Lessor to adjust the Capitalized Lessor's Cost up or down
        by no more than 10% to account for equipment change orders, equipment
        returns, invoicing errors, and similar matters. Lessee acknowledges
        and agrees that the Rent shall be adjusted as a result of such change
        in the Capitalized Lessor's Cost (pursuant to paragraphs 1 and 2
        above). Lessor shall send Lessee a written notice stating the final
        Capitalized Lessor's Cost, if different from that disclosed on this
        Schedule.

D.      Insurance

        I.   Public Liability: $1,000,000 total liability per occurrence.

        2 Casualty and Property Damage: An amount equal to the higher of the
          Stipulated Loss Value or the full replacement cost of the Equipment.

E.      Modifications and Additions to Agreement

        For purposes of this Schedule only, the Agreement is amended as
follows:

        1.   The first sentence of Section IV(d) shall be deleted in its
             entirety and the following substituted in its stead:

        (d)  Lessee will promptly notify Lessor in writing of a change in the
             Equipment Location in the event that any unit of Equipment fails
             to return to such location for a period of ninety consecutive
             days.

        2. Section V(b) shall be amended to add the following sentence at the
end thereof:

             Lessee will allow only qualified, properly licensed personnel
             selected, employed and controlled by Lessee to operate the
             Equipment.

        3. Section X(a) shall be amended by adding the following at the end
thereof:

             Without limiting the foregoing, upon return, each unit of
             Equipment must meet (i) all of manufactures specifications for
             performance under full, rated loads and (ii) all of the following
             conditions:

<PAGE>

             (A)  Tires: All tires shall be of the same type (original size)
                  and manufacturer (i.e., matched) and have a minimum of fifty
                  percent (50%) remaining tread on original or recapped
                  casings (except that only original casings shall be allowed
                  on the front tires of any power unity.

             (B)  Mileage: In the case of GVW Class 1 through 5 vehicles,
                  average annual mileage shall not exceed 15,000 miles, and in
                  the ease of GVW Class 6 through 8 vehicles, average annual
                  mileage shall not exceed 100,000 miles. Should mileage
                  exceed these limits, the Lessee agrees to pay a mileage
                  surcharge of five cents ($.05) per mile on GVW class 1-5
                  vehicles and four cents ($.04) per mile on GVW class 6-8
                  vehicles, for additional mileage exceeding such limits. All
                  mileage determinations shall be based upon hubodometer
                  readings or, in the absence thereof, by odometer readings.
                  Lessee shall promptly notify Lessor of any malfunction of
                  the hubodometer or odometer.

             (C)  General Condition: With respect to each unit, the cost of
                  necessary repairs for damages to exterior and interior
                  material, may not exceed $250, provided any glass shall not
                  be broken, chipped or cracked. All mechanical and electrical
                  equipment, including radios, heaters, air conditioners and
                  refrigeration units must be in proper operating condition.

             (D)  Documents and Records: Upon return of a unit or units of
                  Equipment, all maintenance records, maintenance record
                  jackets, repair orders, license plates, registration
                  certificates and all other similar documents, in their
                  entirety, will be returned to Lessor.

F.      Interest Rate: interest shall accrue from the Lease Commencement Date
        through and including the date of termination of the Lease.

        Except as expressly modified hereby, all terms and provisions of the
Agreement shall remain in full force and effect. This Schedule is not binding
or effective with respect to the Agreement or Equipment until executed on
behalf of Lessor and Lessee by authorized representatives of Lessor and
Lessee, respectively.

       IN WITNESS WHEREOF, Lessee and Lessor have caused this Schedule to be
executed by their duly authorized representatives as of the date first above
written.

LESSOR:                                     LESSEE:

General Electric Capital Corporation        Philip Brothers Chemicals, Inc.

By: /s/ James R. Giaquinto                  By: /s/ Joseph M. Katzenstein
    --------------------------------            -----------------------------
Name: James R. Giaqiunto                    Name: J. Katzenstein

Title: Risk Analyst                         Title: Treasurer

                                            Attest:

                                            By: /s/ Janet Franco
                                                -----------------------------
                                            Name: Janet Franco

<PAGE>

                                             LESSEE:

                                             Phibro-Tech, Inc.

                                             By: Joseph M. Katzenstein
                                                 ---------------------
                                             Name: J. Katzenstein

                                             Title: Treas

<PAGE>

                                    ANNEX A
                                      TO
                                SCHEDULE NO. 1
                       TO MASTER LEASE AGREEMENT
                       DATED AS OF 2/27/98

                           DESCRIPTION OF EQUIPMENT

<TABLE>
<CAPTION>

                  Capitalized
Number              Cost
of Units           Per Unit            Manufacturer                Serial Numbers          Type and Model of
                                                                                               Equipment
<S>             <C>                    <C>                         <C>                     <C>
One (1)         $783 63.22             Acro Trailer Co.            1A91l422V1005036        1997 Semi-Tank
                                                                                           Trailer 1 Model Tanker

<CAPTION>

Above equipment location: 10 Industry Ave., Joliet, IL 60435

<S>             <C>                    <C>                         <C>                     <C>
One (1)         $73,290.82             Comptank Corp.              2C9LTA2B3VB075 115            1997 Vac Trailer
                                                                                           Model DOT-E-l 1903-NVRP
<CAPTION>

Above equipment location: 1000 N. First Street, Garland, TX 75040

<S>             <C>                    <C>                         <C>                     <C>
One (1)         $75,627.00             Comptank Corp.              2C9LTA2B2VB17S090             1997 Vac Trailer 1
                                                                                           Model DOT-S-I 1903-NVRP

One (1)         $27,229.00             Fruehauf                    1JJF281FXWS44I306       1998 Trailer
                                                                                           Model Platform Trailer

One (1)         $73,900.80             Polar                       1PMC44323W2019060             1998 Trailer
                                                                                                 Model Tank
<CAPTION>

Above equipment location: 8851 Dice Road, Santa Fe Springs, CA 90670

<S>             <C>                    <C>                         <C>                     <C>
One (1)         $l0,628.34             La Bour                     N/A                     Pump/Model LVAY.17

</TABLE>

Above equipment location: Industrial Park, Highway 15 South, Sumter, SC 29150

  INCLUDING ALL PROCEEDS, ATTACHMENTS, ACCESSORIES, ADDITIONS OR SUBSTITUTIONS
  NOW OWNED OR HEREAFTER ATTACHED THERETO OR MADE A PART HEREOF.

The above is a complete list of the equipment and all attachments related to
the equipment.

Initials  /s/                               /s/ J. Katzenstein
          Lessor                            ------------------
                                            Lessee

                                            /s/ J. Katzenstein
                                            ------------------
                                            Lessee

<PAGE>

                                    ANNEX C

                                      TO

                                SCHEDULE NO. 1

                           TO MASTER LEASE AGREEMENT

                           DATED AS OF            2/27/98
                           CERTIFICATE OF ACCEPTANCE

To:      General Electric Capital Corporation ("Lessor")

       Pursuant to the provisions of the above schedule and lease
(collectively, the "Lease"), Lessee hereby certifies and warrants that (a) all
Equipment listed in the related invoice is in good condition and appearance,
installed (if applicable), and in working order, and (b) Lessee accepts the
Equipment for all purposes of the Lease and all attendant documents.

       Lessee does further certify that as of the date hereof (i) Lessee is
not in default under the Lease; and (ii) the representations and warranties
made by Lessee pursuant to or under the Lease are true and correct on the date
hereof.

Philipp Brothers Chemicals, Inc.
By:  /s/ Joseph M. Katzenstein
     -------------------------
Title:  Treas
Dated:  2/27/98

Phibro-Tech, Inc.
By:  /s/ Joseph M. Katzenstein
     -------------------------
Title:  Treas
Dated:  2/27/98

<PAGE>

                                    ANNEX D
                                      TO
                                SCHEDULE NO. 1
                           TO MASTER LEASE AGREEMENT
                              DATED AS OF 2/27/98

                  STIPULATED LOSS AND TERMINATION VALUE TABLE

                                                 stipulated
                               termination          loss
                 payment         value              value
                  number       % of cost          % of cost
                    1            101.666          105.572
                    2            100.321          104.179
                    3             98.967          102.776
                    4             97.603          101.362
                    5             96.230           99.939
                    6             94.846           98.506
                    7             93.452           97.063
                    8             92.048           95.610
                    9             90.633           94.146
                   10             89.209           92.673
                   11             87.774           91.188
                   12             86.328           89.694
                   13             84.872           88.188
                   14             83.405           86.673
                   15             81.928           85.146
                   16             80.440           83.609
                   17             78.941           82.060
                   18             77.431           80.501
                   19             75.910           78.931
                   20             74.378           77.350
                   21             72.835           75.758
                   22             71.280           74.154
                   23             69.714           72.539
                   24             68.137           70.912
                   25             66.548           69.274
                   26             64.948           67.625
                   27             63.336           65.964
                   28             61.712           64.291
                   29             60.077           62.606
                   30             58.429           60.909

Initials:  /s/                      /s/ Joseph M. Katzenstein
           ---------                -------------------------
           Lessor                   Lessee

                                    /s/ Joseph M. Katzenstein
                                    -------------------------
                                    Lessee

       The Stipulated Loss Value or Termination Value for any unit of
      Equipment shall be equal to the Capitalized Lessor's Cost of such unit
      multiplied by the appropriate percentage derived from the above table.
      In the event that the Lease is for any reason extended, then the last
      percentage figure shown above shall control throughout any such extended
      term.

<PAGE>

                                    ANNEX D
                                      TO
                                SCHEDULE NO. 1
                           TO MASTER LEASE AGREEMENT
                              DATED AS OF 2/27/98

                  STIPULATED LOSS AND TERMINATION VALUE TABLE
                                                  stipulated
                                termination         loss
                payment           value             value
                number          % of cost        % of cost
                  31              56.769           59.201
                  32              55.098           57.480
                  33              53.414           55.747
                  34              51.718           54.001
                  35              50.009           52.244
                  36              48.288           50.474
                  37              46.555           48.691
                  38              44.809           46.895
                  39              43.050           45.087
                  40              41.278           43.266
                  41              39.493           41.433
                  42              37.696           39.586
                  43              35.885           37.726
                  44              34.061           35.853
                  45              32.224           33.966
                  46              30.373           32.066
                  47              28.509           30.153
                  48              26.631           28.226
                  49              24.739           26.285
                  50              22.834           24.331
                  51              20.915           22.362
                  52              18.982           20.380
                  53              17.034           18.384
                  54              15.073           16.373
                  55              13.097           14.348
                  56              11.107           12.309
                  57               9.102           10.255
                  58               7.083            8.186
                  59               5.049            6.103
                  60               3.000            4.005

Initials:  /s/                      /s/ Joseph M. Katzenstein
          ----------                -------------------------
          Lessor                    Lessee

                                    /s/ Joseph M. Katzenstein
                                    -------------------------
                                    Lessee

          The Stipulated Loss Value or Termination Value for any unit of
          Equipment shall be equal to the Capitalized Lessor's Cost or such
          unit multiplied by the appropriate percentage derived from the above
          table. In the event that the Lease is for any reason extended, then
          the last percentage figure shown above shall control throughout any
          such extended term.

<PAGE>

                                   ADDENDUM
                               TO SCHEDULE NO. I
                           TO MASTER LEASE AGREEMENT
                                     (GPO)
                        DATED AS OF             2/27/98

       THIS ADDENDUM ("Addendum") amends and supplements the above referenced
Schedule ("Schedule") between General Electric Capital Corporation ("Lessor"),
and Philip Brothers Chemicals, Inc. & Phibro-Tech, Inc. ("Lessee"), and is
hereby incorporated into the Schedule as though fully set forth therein.
Capitalized terms not otherwise defined herein shall have the meaning set
forth in the Lease.

       1. Lessee hereby irrevocably agrees to purchase the Equipment upon the
expiration of the Basic Term. Lessee shall pay the Lessor the purchase price
of $1.00 in cash for the Equipment, on or before 3/1/03.

       2. The Equipment shall be sold to Lessee and possession made available
to Lessee "As-Is" and Where-Is; Lessor will not make any representation or
warranty, express or implied, including, but not limited to any warranty as to
fitness for any particular or other purpose, merchantability or patent
infringement, except that Lessor shall have the right to sell the Equipment
and shall transfer to Lessee good title free and clear of any superior lien or
encumbrance created by Lessor. Lessee is liable for any taxes payable as a
result of this sale.

       Except as expressly modified hereby all terms and provisions of the
Lease shall remain in full force and effect. This Addendum is not binding nor
effective with respect to the Lease or the Equipment until executed on behalf
of Lessor and Lessee by authorized representatives of Lessor and Lessee,
respectively.

       IN WITNESS WHEREOF, Lessee and Lessor have caused this Addendum to be
executed by their duly authorized representatives as of the date first above
written.

LESSOR:                                     LESSEE:

General Electric Capital Corporation        Philip Brothers Chemicals, Inc.

By: /s/ James R. Giaqiunto                  By: /s/ Joseph M. Katzenstein
    ----------------------                      -------------------------

Name: James R. Giaquinto                    Name: J. Katzenstein

Title: Risk Analyst                         Title: Treas

                                            Attest:

                                            By: /s/ Janet Franco
                                                ---------------------------
                                            Name: Janet Franco

                                            LESSEE:
                                            By:  /s/ Joseph M. Katzenstein
                                                ---------------------------
                                            Name:  J. Katzenstein

                                            Title: Treasurer

<PAGE>

                                            Attest:

                                            By: /s/ Janet Franco
                                                ---------------------------
                                                Name: Janet Franco

<PAGE>

                 CROSS-COLLATERAL AND CROSS-DEFAULT AGREEMENT

General Electric Capital Corporation
44 Old Ridgebury Road
Danbury, CT 06810-5105

Gentlemen:

        You have entered into or purchased one or more conditional sale
contracts, lease agreements, chattel mortgages, security agreements, notes and
other chooses in action (herein designated "Accounts") arising from the bona
fide sale or lease to us, by various vendors or lessors, of equipment and
inventory (herein designated "Collateral") and/or you have made direct loans
to or otherwise extended credit to us evidenced by Accounts creating security
interests in Collateral.

        In order to induce you to extend our time of payment on one or more
Accounts and/or to make additional loans to us and/or to purchase additional
Accounts and/or to lease us additional equipment, and in consideration of you
so doing, and for other good and valuable consideration, the receipt of which
we hereby acknowledge, we agree as follows:

        All presently existing and hereafter acquired Collateral in which you
have or shall have a security interest shall secure the payment and
performance of all of our liabilities and obligations to you of every kind and
character, whether joint or several, direct or indirect, absolute or
contingent, due or to become due, and whether under presently existing or
hereafter created Accounts or agreements, or otherwise.

        We further agree that your security interest in the property covered
by any Account now held or hereafter acquired by you shall not be terminated
in whole or in part until and unless all indebtedness of every kind, due or to
become due, owed by us to you is fully paid and satisfied and the terms of
every Account have been fully performed by us. It is further agreed that you
are to retain your security interest in all property covered by all Accounts
held or acquired by you, as security for payment and performance under each
such Account, notwithstanding the fact that one or more of such Accounts may
become fully paid.

        This instrument is intended to create cross-default and cross-security
between and among all the within described Accounts now owned or hereafter
acquired by you.

        A default under any Account or agreement shall be deemed to be a
default under all other Accounts and agreements. A default shall result if we
fail to pay any sum when due on any Account or agreement, or if we breach any
of the other terms and conditions thereof, or if we become insolvent, cease to
do business as a going concern, make an assignment for the benefit of
creditors, or if a petition for a receiver or in bankruptcy is filed by or
against us, or if any of our property is seized, attached or levied upon. Upon
our default any or all Accounts and agreements shall, at your option, become
immediately due and payable without notice or demand to us or any other party
obligated thereon, and you shall have and may exercise any and all rights and
remedies of a secured party under the Uniform Commercial Code as enacted in
the applicable jurisdiction and as otherwise granted to you under any Account
or other agreement. We hereby waive, to the maximum extent permitted by law,
notices of default, notices of repossession and sale or other disposition of
collateral, and all other notices, and in the event any such notice cannot be
waived, we agree that if such notice is mailed to us postage prepaid at the
address shown below at least five (5) days prior to the exercise by you of any
of your rights or remedies, such notice shall be deemed to be reasonable and
shall fully satisfy any requirement for giving notice.

        All rights granted to you hereunder shall be cumulative and not
alternative, shall be in addition to and shall in no manner impair or affect
your rights and remedies under

<PAGE>

any existing Account, agreement, statute or rule of law.

        This agreement may not be varied or altered nor its provisions waived
except by your duly executed written agreement. This agreement shall inure to
the benefit of your successors and assigns and shall be binding upon our
heirs, administrators, executors, legal representatives, successors and
assigns.

        IN WITNESS WHEREOF, this agreement is executed this 27th day of
February, 1998.

LESSEE:                                                               LESSEE:

Philip Brothers Chemicals, Inc.                  Phibro-Tech, Inc.
(Name of Proprietorship,                         (Name of Proprietorship,
Partnership or Corporation, as applicable)       Partnership or Corporation, as
                                                 applicable)

By: /s/ Joseph M. Katzenstein                    By: /s/ Joseph M. Katzenstein
    -------------------------                        -------------------------
    (Signature)                                      (Signature)

Title: Treas                                     Title: Treas
(Owner, Partner, or                              (Owner, Partner, or
Officer, as applicable)                          Officer, as applicable)

Address: One Parker Plaza                        Address: One Parker Plaza
         Fort Lee, NJ 07024                               Fort Lee, NJ 07024

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