Document:

DISBURSEMENT REQUEST AND AUTHORIZATION

<TABLE>
<CAPTION>
      Principal        Loan Date        Maturity      Loan No      Call      Collateral      Account      Officer       Initials
<S>  <C>               <C>             <C>              <C>          <C>        <C>          <C>            <C>
     $3,750,000.00     01-11-2000      12/01/2000       9001         C          7380         2999005        79969
</TABLE>
   References in the shaded area are for  Lender's use only and do not limit the
   applicability of this document to any particular loan or item.

Borrower: DYNATRONICS CORPORATION       Lender:   ZIONS FIRST NATIONAL BANK
          7030 PARK CENTRE DRIVE                  HEAD OFFICE/COMMERCIAL BANKING
          SALT LAKE CITY, UT 84121                #1 SOUTH MAIN STREET
                                                  SALT LAKE CITY, UT 84125

LOAN TYPE.  This is a Variable  Rate (at ZIONS FIRST  NATIONAL  BANK PRIME RATE,
making  an  initial  rate  of  8.500%),  Revolving  Line  of  Credit  Loan  to a
Corporation for $3,750,000.00 due on December 1, 2000. This is a secured renewal
of the following  described  indebtedness:  The Promissory Note from Dynatronics
Corporation to Lender dated October 21, 1998 in the original principal amount of
$3,500,000.00.

PRIMARY PURPOSE OF LOAN.  The primary purpose of this loan is for:

              | |   Personal, Family, or Household Purposes or Personal
               -     Investment.

              |X|   Business (including Real Estate Investment).
               -

SPECIFIC PURPOSE.  The specific purpose of this loan is: TO RENEW AND INCREASE
LINE OF CREDIT USED FOR SHORT-TERM WORKING CAPITAL NEEDS.

FLOOD INSURANCE. As reflected on Flood Map No. 490102 dated 12-18-1985,  for the
community of 490102 0313B, the property that will secure the loan is not located
in an area that has been  identified  by the  Director of the Federal  Emergency
Management Agency as an area having special flood hazards.  Therefore,  although
flood  insurance  may be available  for the  property,  no special  flood hazard
insurance is required by law for this loan.

DISBURSEMENT  INSTRUCTIONS.  Borrower  understands that no loan proceeds will be
disbursed  until  all of  Lender's  conditions  for  making  the loan  have been
satisfied. Please disburse the loan proceeds of $3,750,000.00 as follows:

         Undisbursed Funds:                                        $1,330,046.58

         Amount paid to others on Borrower's behalf:               $2,410,083.42
         $2,410,083.42 RENEW LOAN #2999005-9001

         Other Charges Financed:                                         $495.00

         $200.00 Preliminary Report
         $35.00 Recording
         $225.00 Loan Documentation Fee
         $35.00 Future Reconveyance

         Total Financed Prepaid Finance Charges:                       $9,375.00

         $9,375.00 Loan Fees

         Note Principal:                                           $3,750,000.00

CHARGES PAID IN CASH.  Borrower has paid or will pay in cash as agreed the
following charges:

Prepaid Finance Charges Paid In Cash:                                      $0.00

Other Charges Paid In Cash:                                           $41,993.78
      $41,993.78 Interest Due thru 01/11/00
                                                                    ------------

Total Charges Paid In Cash:                                           $41,993.78

FINAL  AGREEMENT.  Borrower  understands  that  the  loan  documents  signed  in
connection  with this loan are the final  expression  of the  agreement  between
Lender and Borrower and may not be  contradicted by evidence of any alleged oral
agreement.

DISBURSEMENT AUTHORIZATION. BORROWER HEREBY AUTHORIZES LENDER TO DISBURSE ANY
FUNDS PURSUANT TO FACSIMILE WIRE INSTRUCTIONS WHICH  BEARS THE SIGNATURE OF ANY
AUTHORIZED SIGNER.

                                        1
<PAGE>

01-11-2000            DISBURSEMENT REQUEST AND AUTHORIZATION              Page 2
                                  (Continued)

ALLOCATION OF PROCEEDS. THE PROCEEDS OF THIS LOAN WILL BE USED TO RENEW A
REVOLVING LINE OF CREDIT. THE CURRENT OUTSTANDING BALANCE AND THE AMOUNT
AVAILABLE ARE DESCRIBED ABOVE IN THE SECTION ENTITLED AMOUNT PAID TO OTHERS ON
BORROWER'S BEHALF.

FINANCIAL  CONDITION.  BY SIGNING THIS  AUTHORIZATION,  BORROWER  REPRESENTS AND
WARRANTS TO LENDER THAT THE  INFORMATION  PROVIDED ABOVE IS TRUE AND CORRECT AND
THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER'S FINANCIAL CONDITION
AS DISCLOSED  IN  BORROWER'S  MOST RECENT  FINANCIAL  STATEMENT TO LENDER.  THIS
AUTHORIZATION IS DATED JANUARY 11, 2000.

BORROWER:

DYNATRONICS CORPORATION

By:     /s/ KELVYN H. CULLIMORE, JR.
    ---------------------------------------
        KELVYN H. CULLIMORE, JR., PRESIDENT

LASER PRO, Reg. U.S. Pat. & T.M. Off.., Ver. 3.28 (c) 2000 CFI ProServices, Inc.
All rights reserved. [UT-I20 DYNAT.LN)AGREEMENT TO PROVIDE INSURANCE

<TABLE>
<CAPTION>
       Principal       Loan Date         Maturity        Loan No       Call      Collateral       Account       Officer   Initials
<S>  <C>               <C>              <C>               <C>            <C>        <C>           <C>            <C>
     $3,750,000.00     01-11-2000       12/01/2000        9001           C          7380          2999005        79969
</TABLE>
      References in the shaded area are for Lender's use only and do not limit
      the applicability of this document to any particular loan or item.

Borrower:   DYNATRONICS CORPORATION     Lender:   ZIONS FIRST NATIONAL BANK
            7030 PARK CENTRE DRIVE                HEAD OFFICE/COMMERCIAL BANKING
            SALT LAKE CITY, UT 84121              #1 SOUTH MAIN STREET

                            SALT LAKE CITY, UT 84125

INSURANCE REQUIREMENTS.   DYNATRONICS CORPORATION ("Grantor") understands that
insurance coverage is required in connection with the extending of a loan or the
providing of other  financial  accommodations  to Grantor by Lender.  These
requirements  are set  forth in the  security  documents.  The  following
minimum  insurance  coverages  must  be  provided  on  the  following  described
collateral (the "Collateral"):

Collateral:     Real Estate at 7030 PARK CENTRE DRIVE, SALT LAKE CITY, UT 84121.
                Type.   Fire and extended coverage.
                Amount.  Full insurable value.
                Basis.  Replacement value.
                Endorsements.  Standard  mortgagee's  clause with  stipulation
                that coverage  will not be cancelled or  diminished  without a
                minimum of ten (10) days' prior written notice to Lender,  and
                without  disclaimer of the insurer's  liability for failure to
                give such notice.

Collateral:     All Inventory.

                Type.  All risks, including fire, theft and liability.
                Amount.  Full insurable value.
                Basis.  Replacement value.
                Endorsements.  Lender's loss payable  clause with  stipulation
                that coverage  will not be cancelled or  diminished  without a
                minimum of ten (10) days' prior written notice to Lender.

INSURANCE  COMPANY.  Grantor may obtain  insurance  from any  insurance  company
Grantor may choose that is reasonably acceptable to Lender.  Grantor understands
that credit may not be denied solely because insurance was not purchased through
Lender.

FLOOD INSURANCE.  Flood Insurance for property given as security for this loan
is described as follows:

         Real Estate at 7030 PARK CENTRE DRIVE, SALT LAKE CITY, UT 84121.
         Should  the  Collateral  at any time be deemed to be located in an area
         designated by the Director of the Federal  Emergency  Management Agency
         as a special  flood  hazard  area and should  Federal  Flood  Insurance
         covering the Collateral ever become available, Grantor agrees to obtain
         and maintain  Federal Flood  Insurance,  for the full unpaid  principal
         balance of the loan and any prior liens on the  property  securing  the
         loan,  up to the maximum  policy  limits set under the  National  Flood
         Insurance  Program,  or as  otherwise  required,  and to maintain  such
         insurance for the term of the loan.

FAILURE TO PROVIDE  INSURANCE.  Grantor  agrees to  purchase  and  maintain  any
required flood insurance within 45 days following notice given by Lender.

Additionally,  Grantor  agrees to deliver to Lender,  fifteen (15) days from the
date of this  Agreement,  evidence of all other  required  insurance as provided
above,  with  an  effective  date of  January  11,  2000,  or  earlier.  Grantor
acknowledges and agrees that if Grantor fails to provide any required  insurance
or fails to continue  such  insurance  in force,  Lender may do so at  Grantor's
expense as provided in the  applicable  security  document  The cost of any such
insurance, at the option of Lender, shall be payable on demand or shall be added
to the indebtedness as provided in the security document.  GRANTOR  ACKNOWLEDGES
THAT IF LENDER SO  PURCHASES  ANY SUCH  INSURANCE,  THE  INSURANCE  WILL PROVIDE
LIMITED PROTECTION AGAINST PHYSICAL DAMAGE TO THE COLLATERAL,  UP TO THE BALANCE
OF THE LOAN; HOWEVER,  GRANTOR'S EQUITY IN THE COLLATERAL MAY NOT BE INSURED. IN
ADDITION,  THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE
INDEMNIFICATION   AND  MAY  NOT  MEET   THE   REQUIREMENTS   OF  ANY   FINANCIAL
RESPONSIBILITY LAWS.

AUTHORIZATION.  For purposes of insurance  coverage on the  Collateral,  Grantor
authorizes  Lender to provide to any person  (including  any insurance  agent or
company)  all  information  Lender  deems  appropriate,  whether  regarding  the
Collateral, the loan or other financial accommodations, or both.

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE
INSURANCE AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED JANUARY 11, 2000.

GRANTOR:

DYNATRONICS CORPORATION

By:       /s/ KELVYN H. CULLIMORE, JR.
        -----------------------------------
        KELVYN H. CULLIMORE, JR., PRESIDENT

                                        1
<PAGE>

                              FOR LENDER USE ONLY
                             INSURANCE VERIFICATION

DATE:                                     PHONE:
     ------------------------------              -------------------------------

AGENT'S NAME:
             -------------------------------------------------------------------
INSURANCE COMPANY:
                  --------------------------------------------------------------
POLICY NUMBER:
              ------------------------------------------------------------------
EFFECTIVE DATES:
                ----------------------------------------------------------------
COMMENTS:
         -----------------------------------------------------------------------
LASER PRO, Reg. U.S. Pat. & T.M. Off.., Ver. 3.28 (c) 2000 CFI ProServices, Inc.
All rights reserved. [UT-I10 DYNAT.LN)

                                        2

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