Document:

Exhibit 10.13

       Credit Facility Letter dated as of January 1, 2005 between Ardent
                 Pharmaceuticals, Inc. and Bioaccelerate, Inc.

                                Bioaccelerate Inc

                                1st January, 2005

Ardent Pharmaceuticals, Inc.
631 United Drive, Suite 200

Durham, NC 27713
Attn:  President and CEO

      Re:   Credit Facility

Gentlemen:

BIOACCELERATE INC  ("BIOACCELERATE  INC") is pleased to make available to Ardent
Pharmaceuticals,  Inc. (the  "Company") a senior,  secured credit  facility (the
"Credit  Facility"),  pursuant  to which  BIOACCELERATE  INC shall  provide  the
Company one or more loans (each, a "Tranche") in the aggregate  principal amount
of up to Two Million Dollars ($2,000,000) dollars (the "Maximum Funded Amount"),
subject to the terms and  conditions  as  hereinafter  provided  in this  letter
agreement (this "Letter Agreement").

The First Tranche (the "Initial  Tranche") will be payable to the Company or its
Creditors  on an as  needed  basis  in  conjunction  with  a  budget  agreed  by
BiIOACCELERATE  INC and will be provided  and funded to the Company upon receipt
of the following  documents from the Company:  (i) a grid  promissory  note (the
"Note"),  executed  by an  authorized  officer  of the  Company  evidencing  the
principal  amount of funds available under the Credit Facility and the draw down
of the  Initial  Tranche  (in the form  attached  hereto as Exhibit  A),  (ii) a
security  agreement (the "Security  Agreement") and other  collateral  documents
pursuant to which certain assets and subsequently acquired assets of the Company
shall be pledged to secure the  repayment of the  indebtedness  evidenced by the
Note (the  "Security  Documents"),  executed  by an  authorized  officer  of the
Company  (in the form  attached  hereto as Exhibit  B),  (iii) the  warrant  (as
defined  herein),  executed by an authorized  officer of the Company,  (iv) such
other documents,  each in form and substance  satisfactory to BIOACCELERATE INC,
as  BIOACCELERATE  INC  shall  reasonably  request.  Subject  to the  conditions
specified herein, additional Tranches shall be made available on as needed basis
(each a "Funding Date").  Each Additional  Tranche will be funded within two (2)
business  days  following  receipt by  BIOACCELERATE  INC on a Funding Date of a
request for the funding of an Additional  Tranche (each,  a "Request")  from the
Company.

The  Company  covenants  to use the  proceeds  of each  Tranche  solely  for the
purposes as agreed with  BIOACCELERATE  INC. In  connection  with the  foregoing
covenant, BIOACCELERATE INC shall have the right (the "Audit and Demand Right"),
subject to customary confidentiality  provisions, at any time during the term of
the  Note  and  for  such  extended  period  of  time  as  indebtedness  remains
outstanding under any Note to (a) audit and inspect the books and records of the
Company for the purpose of  determining  the use of proceeds from any Tranche at
reasonable  times and with reasonable  prior notice in accordance with the terms
and  conditions of the Note or (b) demand  reasonable  evidence from the Company
that the Company is in compliance  with the foregoing  covenant,  which evidence
the Company shall provide to BIOACCELERATE INC promptly upon written request.

                                      -1-
<PAGE>

Notwithstanding   anything  to  the  contrary   provided  herein  or  elsewhere,
BIOACCELERATE  INC shall have no  obligation  to fund a Tranche if at the time a
Request is received by  BIOACCELERATE  INC and prior to when the funds requested
in the  Tranche  are  sent,  one or  more of the  following  events  shall  have
occurred:

      (iv)  There  shall be any  material  change in the  business,  properties,
assets,  results of operations,  prospects or financial condition of the Company
since December 31, 2004,  except as represented  and disclosed to  BIOACCELERATE
INC;

      (v) The  Company  shall be in breach  of or  default  under  any  material
contract, license or other agreement or instrument; or

      (vi) There  shall not have  occurred  (a) any  domestic  or  international
event,  act or occurrence  which has materially  disrupted,  or is likely in the
immediate future to materially disrupt,  the securities  markets;  (b) a general
suspension of, or a general  limitation on prices for,  trading in securities on
the  New  York  Stock  Exchange  or  the  American  Stock  Exchange  or  in  the
over-the-counter market; (c) any outbreak of major hostilities or other national
or international  calamity;  (d) any banking  moratorium  declared by a state or
federal  authority;  (e) any moratorium  declared in foreign exchange trading by
major international banks or other persons; (f) any material interruption in the
mail service or other means of communication  within the United States;  (g) any
change in the market for  securities in general or in political,  financial,  or
economic  conditions;  or (h)  neither  the  Company  nor  any of its  officers,
directors and/or controlling  shareholders have become the subject of or a named
party in any investigation or action involving any regulatory or self-regulatory
organization  including,  but not  limited  to,  the SEC,  the NASD or any state
and/or  federal  agency  (each as set forth in this  clause  (iii),  a "Pro Rata
Event").

As an  inducement  to  BIOACCELERATE  INC to provide the Credit  Facility to the
Company, the Company's Parent, Enhance Biotech Inc, shall issue to BIOACCELERATE
INC (on the date of the funding of the Initial  Tranche)  five (5) year warrants
(the  "Warrants") to purchase  750,000 shares of the Company's common stock (the
"Common Stock"),  at an exercise price of $3.00 per share (subject to adjustment
for anti-dilution and other customary adjustments) .

This  Agreement  shall be  governed  by and  construed  in  accordance  with the
internal  laws of the State of New York without  regard to the conflicts of laws
principles thereof.  The parties hereto hereby agree that any suit or proceeding
arising directly and/or  indirectly  pursuant to or under this instrument or the
consummation of the transactions contemplated hereby, shall be brought solely in
a federal or state court  located in the City,  County and State of New York. By
its execution hereof,  the parties hereby covenant and irrevocably submit to the
in personam  jurisdiction  of the federal and state courts  located in the City,
County and State of New York and agree that any  process in any such  action may
be served upon any of them  personally,  or by certified mail or registered mail
upon them or their agent, return receipt requested, with the same fall force and
effect as if personally  served upon them in New York City.  The parties  hereto
waive any claim that any such  jurisdiction  is not a  convenient  forum for any
such suit or proceeding and any defense or lack of in personam jurisdiction with
respect  thereto.  In the  event of any such  action  or  proceeding,  the party
prevailing  therein  shall be entitled to payment from the other party hereto of
its  reasonable   counsel  fees  and   disbursements  in  an  amount  judicially
determined.

                                      -2-
<PAGE>

Any notice,  consent,  request,  or other communication given hereunder shall be
deemed sufficient if in writing and sent by registered or certified mail, return
receipt  requested  addressed to the Company,  at its principal  office as first
provided  above,  Attention:  Phillip  Wise.  And  to  BIOACCELERATE  INC at its
addressed  provided above (or to such other address as either the Company and/or
BIOACCELERATE INC shall provide in writing to the other party). Notices shall be
deemed to have been given on the date of receipt by the other party.

                                    Very truly yours,

                                    BIOACCELERATE, INC.

                                    By: /s/ Linden Boyne
                                        ----------------
                                    Name: Linden Boyne
                                    Title:    CFO

Accepted and agreed as of the
date first appearing above

ARDENT PHARMACEUTICALS, INC.

By: /s/ Phillip S. Wise
    --------------------------
Name: Phillip S. Wise
Title:   CFO

By: /s/ Christopher Every
    --------------------------
    Name:  Christopher Every
    Title: President and CEO
           Enhance Biotech, Inc.

                                      -3-
<PAGE>

                                    EXHIBIT A

                                  FORM OF NOTE

                                      -4-
<PAGE>

                                    EXHIBIT B

                           FORM OF SECURITY AGREEMENT

                                      -5-Exhibit 10.14

 Security Agreement dated as of January 1, 2005 between Ardent Pharmaceuticals,
                          Inc and Bioaccelerate, Inc.

                               SECURITY AGREEMENT

THIS SECURITY AGREEMENT (this "Agreement") is dated as of 1st January,  2005, by
ARDENT PHARMACEUTICALS,  INC., a North Carolina corporation (the "Grantor"),  in
favor of BIOACCELERATE INC, a Delaware corporation (the "Lender").

                                    Recitals

WHEREAS,  pursuant to that certain letter agreement (the "Letter  Agreement") of
even date herewith  between the Grantor and Lender,  Lender has made available a
senior,  secured credit facility in the aggregate  principal amount of up to Two
Million Dollars ($2,000,000);

WHEREAS,  pursuant to that  certain  Note of even date  herewith,  issued by the
Grantor in favor of the  Lender  (as the same may from time to time be  amended,
modified, supplemented or restated, the "Note"), Grantor has promised to pay the
Obligations (as defined herein) to the Lender; and

WHEREAS, the obligations of the Lender under the Letter Agreement are subject to
the condition,  among others,  that Grantor shall have executed and delivered to
Lender this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of  which  are  hereby  acknowledged  by  Grantor,  Grantor  hereby  represents,
covenants and agrees with Lender as follows:

1.    Definitions.

      a.    When used in this  Agreement  the  following  terms  shall  have the
            following  meanings (such meanings being equally  applicable to both
            the singular and plural forms of the terms defined):

            "Collateral"  has the meaning  assigned to such term in Section 2 of
this Agreement.

            "Contracts"  means all contracts  (including  any customer,  vendor,
supplier,  service or maintenance  contract),  leases,  licenses,  undertakings,
purchase orders,  permits,  franchise agreements or other agreements (other than
any right  evidenced by Chattel  Paper,  Documents or  Instruments),  whether in
written or  electronic  form,  in or under which  Grantor now holds or hereafter
acquires  any right,  title or interest,  including,  without  limitation,  with
respect to an  Account,  any  agreement  relating to the terms of payment or the
terms of performance thereof.

      "Copyrights" means all of the following now owned or hereafter acquired or
created  (as a work for hire for the  benefit of Grantor) by Grantor or in which
Grantor now holds or hereafter  acquires or receives  any right or interest,  in
whole or in part: (a) all copyrights,  whether registered or unregistered,  held
pursuant  to the laws of the  United  States,  any  State  thereof  or any other
country;  (b)  registrations,  applications,  recordings and  proceedings in the
United States  Copyright Office or in any similar office or agency of the United
States, any State thereof or any other country; (c) any continuations,  renewals
or  extensions  thereof;  (d) any  registrations  to be  issued  in any  pending
applications, and shall include any right or interest in and to work protectable
by any of the foregoing  which are presently or in the future owned,  created or
authorized  (as a work for hire for the  benefit  of  Grantor)  or  acquired  by
Grantor,  in whole or in part;  (e) prior versions of works covered by copyright
and all works based upon,  derived from or incorporating such works; (f) income,
royalties,  damages,  claims and payments now and hereafter  due and/or  payable
with respect to copyrights,  including, without limitation,  damages, claims and
recoveries for past, present or future infringement; (g) rights to sue for past,
present and future  infringements  of any  copyright;  and (h) any other  rights
corresponding to any of the foregoing rights throughout the world.

                                       1
<PAGE>

      "Obligations" has the meaning set forth in Section 3 of this Agreement.

      "Patents"  means  all of the  following  in  which  Grantor  now  holds or
hereafter acquires any interest:  (a) all letters patent of the United States or
any other country, all registrations and recordings thereof and all applications
for letters patent of the United States or any other country, including, without
limitation,  registrations,  recordings  and  applications  in the United States
Patent and  Trademark  Office or in any  similar  office or agency of the United
States,  any State thereof or any other  country;  (b) all reissues,  divisions,
continuations,  renewals,  continuations-in-part  or extensions thereof; (c) all
petty patents,  divisionals and patents of addition; (d) all patents to issue in
any such applications;  (e) income, royalties,  damages, claims and payments now
and hereafter  due and/or  payable with respect to patents,  including,  without
limitation,   damages,  claims  and  recoveries  for  past,  present  or  future
infringement;  and (f) rights to sue for past, present and future  infringements
of any patent.

      "Trademark"  means  any of the  following  in which  Grantor  now holds or
hereafter  acquires any  interest:  (a) all  trademarks,  whether  registered or
unregistered, held pursuant to the laws of the United States, and State thereof,
or any country (b)  registrations,  applications,  recordings and proceedings in
the United States Patent and Trademark Office or in any similar office or agency
of  the  United  States,  any  State  thereof  or any  other  country;  (c)  any
continuations,  renewals or  extensions  thereof;  (d) any  registrations  to be
issued in any pending applications (e) income,  royalties,  damages,  claims and
payments  now and  hereafter  due and/or  payable  with  respect to  trademarks,
including, without limitation,  damages, claims and recoveries for past, present
or  future  infringement;  (g)  rights  to sue  for  past,  present  and  future
infringements of any trademark; and (h) any other rights corresponding to any of
the foregoing rights throughout the world.

"UCC" means the Uniform  Commercial Code as the same may from time to time be in
effect in the State of New York; provided, however, in the event that, by reason
of mandatory  provisions  of law, any or all of the  attachment,  perfection  or
priority of Lender's  security  interest  in any  Collateral  is governed by the
Uniform  Commercial Code as in effect in a jurisdiction  other than the State of
New York, the term "UCC" shall mean the Uniform  Commercial  Code (including the
Articles  thereof)  as in  effect at such time in such  other  jurisdiction  for
purposes of the provisions  hereof  relating to such  attachment,  perfection or
priority  and  for  purposes  of  definitions  related  to such  provisions.  In
addition,  the following  terms shall have the meanings set forth for such terms
in the UCC: "Account," "Account Debtor," "Chattel Paper" (including tangible and
electronic  chattel  paper),  "Commercial  Tort  Claims,"  "Commodity  Account,"
"Deposit  Account,"  "Documents,"  "Equipment,"  "Fixtures,"  "Fixture  Filing,"
"General  Intangible"  (including,   without  limitation,  Payment  Intangibles,
Copyrights,  Patents,  Trademarks,  designs,  drawings,  technical  information,
marketing  plans,  customer  lists,  trade secrets,  proprietary or confidential
information,  inventions  (whether  or not  patentable),  procedures,  know-how,
models and data), "Instrument,"  "Intellectual Property," "Inventory" (including
all goods held for sale or lease or to be furnished under a contract of service,
and  including  returns and  repossessions),  "Investment  Property"  (including
Securities, Securities Accounts and Securities entitlements),  "Letter-of-Credit
Right" (whether or not the letter of credit is evidenced by a writing), "Payment
Intangibles,"   "Proceeds,"   "Promissory  Notes,"   "Securities,"   "Securities
Account,"  "Securities  Entitlement" and "Supporting  Obligations."  Each of the
foregoing  terms  shall  include  all of such  items  now  owned,  or  hereafter
acquired,  by Grantor.

      b.    Except as otherwise  defined herein,  all capitalized  terms used in
            this Agreement have the meanings stated in the Note.

2.    Grant of Security.  As collateral security for the full, prompt,  complete
      and final payment and performance when due (whether at stated maturity, by
      acceleration or otherwise) of all the  Obligations,  Grantor hereby grants
      to Lender a lien on and  security  interest  in, all of  Grantor's  right,
      title and  interest in, to and under the  following,  whether now owned or
      hereafter acquired (all of which being collectively  referred to herein as
      the "Collateral"):

                                       2
<PAGE>

      a.    All  Accounts  of  Grantor  (including,  but  not  limited  to,  and
            notwithstanding  anything in this Agreement to the contrary, any and
            all  proceeds,  money  or  accounts  under  all  Contracts  (without
            exception).

      b.    All Chattel Paper of Grantor;

      c.    All Contracts of Grantor;

      d.    All Deposit Accounts of Grantor;

      e.    All Documents of Grantor;

      f.    All Equipment of Grantor;  (Excepting  those leased items as defined
            in Appendix 1 of this document)

      g.    All Fixtures of Grantor; (Excepting those leased items as defined in
            Appendix 1 of this document)

      h.    All General Intangibles of Grantor;

      i.    All   Instruments  of  Grantor,   including,   without   limitation,
            Promissory Notes;

      j.    All Inventory of Grantor;

      k.    All Investment Property of Grantor;

      l.    All Letter-of Credit Rights of Grantor;

      m.    All Supporting Obligations of Grantor;

      n.    All  property  of  Grantor  held  by  Lender,   including,   without
            limitation,  all property of every  description  now or hereafter in
            the  possession  or  custody  of or in  transit  to  Lender  for any
            purpose, including, without limitation,  safekeeping,  collection or
            pledge, for the account of Grantor,  or as to which Grantor may have
            any right or power;

      o.    All other goods and personal  property of Grantor wherever  located,
            whether  tangible or intangible,  and whether now owned or hereafter
            acquired,  existing,  leased or consigned  by or to Grantor,  except
            those goods and personal  property  which are  excluded  pursuant to
            Section 2(c) or 2(h)  hereunder,  and excluded under Appendix 1 from
            2f & 2g; and

      p.    To the extent not  otherwise  included,  all Proceeds of each of the
            foregoing and all accessions to,  substitutions and replacements for
            and rents, profits and products of each of the foregoing.

If Grantor  shall at any time acquire a  Commercial  Tort Claim,  Grantor  shall
promptly  notify the Lender in a writing  signed by Grantor of the brief details
thereof and grant to Lender in such writing a security  interest  therein and in
the proceeds thereof, all upon the terms of this Agreement, with such writing to
be in form and substance reasonably satisfactory to the Lender.

Grantor  hereby  authorizes  the  Lender to file,  without  Grantor's  signature
thereon and at Grantor's expense, financing statements,  continuation statements
(including  "in lieu"  continuation  statements)  and amendments  thereto,  that
describe the Collateral and which contain any other information required by Part
5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any
financing statement,  continuation statement or amendment,  including if Grantor
is an organization, the type of organization and any organization identification
number issued to Grantor.

                                       3
<PAGE>

3.    Security for Obligations. This Agreement secures the payment of (i) all of
      the unpaid  principal  amount of, and accrued  interest on (including  any
      interest that accrues after the commencement of any bankruptcy proceeding)
      the Note,  (ii) the  obligation  of  Grantor  to pay any  fees,  costs and
      expenses  of  Lender  under the  Note,  and  (iii) all other  obligations,
      liabilities and indebtedness owed by Grantor to the Lender under the Note,
      in each case,  whether now existing or hereafter  incurred  (collectively,
      the "Obligations").

4.    Rights of Lender; Collection of Accounts.

      a.    Grantor expressly agrees that Grantor shall remain liable under each
            of its  Contracts  to observe  and perform  all the  conditions  and
            obligations  to be observed and performed by it thereunder  and that
            Grantor shall perform all of its duties and  obligations  thereunder
            such  that the  Grantor  shall not be deemed to be in breach of each
            such Contract. The Lender shall not have any obligation or liability
            under any Contract by reason of or arising out of this  Agreement or
            the  granting to the Lender of a lien  therein or the receipt by the
            Lender of any payment relating to any Contract pursuant hereto,  nor
            shall the Lender be required or  obligated  in any manner to perform
            or fulfill any of the  obligations  of Grantor  under or pursuant to
            any Contract,  or to make any payment,  or to make any inquiry as to
            the nature or the sufficiency of any payment received by them or the
            sufficiency of any  performance by any party under any Contract,  or
            to present  or file any  claim,  or to take any action to collect or
            enforce any performance or the payment of any amounts which may have
            been  assigned  to them or to which they may be entitled at any time
            or times.

      b.    The Lender authorizes Grantor to collect its accounts, provided that
            such collection is performed in a prudent and  businesslike  manner,
            and the Lender may, upon the occurrence and during the  continuation
            of any Event of Default and without notice,  limit or terminate said
            authority  at  any  time.   Upon  the   occurrence  and  during  the
            continuance  of any Event of Default,  at the request of the Lender,
            Grantor  shall  deliver to Lender all original  and other  documents
            which created  and/or relate to such  accounts,  including,  without
            limitation, all original orders, invoices and shipping receipts.

      c.    The  Lender  may at any time,  upon the  occurrence  and  during the
            continuance of any Event of Default,  without  notifying  Grantor of
            its intention to do so, notify Account  Debtors of Grantor,  parties
            to the Contracts of Grantor,  obligors in respect of  Instruments of
            Grantor and obligors in respect of Chattel Paper of Grantor that the
            Accounts  and the right,  title and  interest  of Grantor in, to and
            under  such  Contracts,  Instruments  and  Chattel  Paper  have been
            assigned  to Lender and that  payments  thereunder  or with  respect
            thereto are to be made  directly to the Lender.  Upon the request of
            the Lender,  Grantor shall promptly so notify such Account  Debtors,
            parties to such Contracts,  obligors in respect of such  Instruments
            and obligors in respect of such Chattel  Paper.  Upon the occurrence
            and during the continuance of any Event of Default,  the Lender may,
            in  Lender's  name or in the name of others,  communicate  with such
            Account Debtors,  parties to such Contracts,  obligors in respect of
            such  Instruments  and obligors in respect of such Chattel  Paper to
            verify  with  such  parties,  to  the  Lender's  satisfaction,   the
            existence,  amount  and  terms  of  any  such  Accounts,  Contracts,
            Instruments or Chattel Paper.  Notwithstanding the foregoing, Lender
            shall not  notify  or  otherwise  communicate  with any  parties  to
            Contracts or Account  Debtors of Grantor  except upon the occurrence
            of any Event of Default.

      d.    Without  limiting the foregoing and Lender's  rights as set forth in
            the foregoing,  any action by the Lender pursuant to or as described
            in Section 4(b) or Section 4(c) hereof shall be in  compliance  with
            the provisions set forth in Section 12(b)(v) hereof.

                                       4
<PAGE>

5.    Representations and Warranties of Grantor. Grantor represents and warrants
      as follows:

      a.    Grantor  is a  corporation  duly  organized,  existing  and in  good
            standing under the laws of the Delaware,  (b) has the legal power to
            own  its  property  and to  carry  on  its  business  as  now  being
            conducted,  and (c) is duly  qualified to do business and is in good
            standing  in  each  jurisdiction  in  which  the  character  of  the
            properties owned or leased by it therein or in which the transaction
            of its business makes such qualification necessary, except where the
            failure  to so  qualify  or be in good  standing  would  not  have a
            Material Adverse Effect;

      b.    Grantor  is, and as to  Collateral  acquired by it from time to time
            after the date hereof  Grantor will be, the owner of all  Collateral
            free from any liens,  other than liens created hereby and other than
            Permitted Liens;

      c.    This  Agreement  creates,  for the benefit and security of Lender in
            respect of the  Obligations,  a legally  valid and binding  lien on,
            pledge of, and security  interest in the  Collateral  and,  upon the
            filing of a UCC Financing Statement, and any applicable filings with
            respect  to  Copyrights,  Patents  or  Trademarks  in respect of the
            Collateral,   such  lien,  pledge  and  security  interest  will  be
            perfected  and will  have  priority  over the  claims  of any  other
            present and future  creditors of the Company  (other than  Permitted
            Liens or liens upon such of the Collateral that must be perfected by
            possession or control of such Collateral); and

      d.    Grantor's  chief executive  office,  principal place of business and
            the  place  where  Grantor  maintains  its  records  concerning  the
            Collateral  are each  presently  located at the address set forth on
            the  signature   page  hereof;   and  Grantor's   Federal   taxpayer
            identification  number and Grantor's  organizational  identification
            number under the laws of the State in which Grantor, as a registered
            organization,  was organized are as set forth on the signature  page
            hereto.

6.    As to the Collateral.

      a.    Notwithstanding  anything  to the  contrary  contained  herein,  the
            assignment by Grantor  herein stated is intended to be an assignment
            for security  purposes and is not intended to divest  Grantor of its
            ownership of the Collateral, except as otherwise provided herein.

      b.    So long as no Event of Default has occurred and is  continuing,  (i)
            Grantor   shall  retain  title  to  and  record   ownership  of  the
            Collateral,  and (ii)  Grantor  shall be entitled to receive any and
            all income or  distributions  made with  respect to the  Collateral,
            except as provided in Section 6(c) hereof.

      c.    Upon  the  occurrence  and  during  the  continuance  of an Event of
            Default,  all  income  and  proceeds  of the  Collateral  which  are
            received by Grantor  shall be (i)  received in trust for the benefit
            of the Lender,  (ii)  segregated  from other  funds of Grantor,  and
            (iii) forthwith paid over by Grantor to the Lender (for  application
            in accordance with this Agreement) in the same form as so received.

7.    Covenants of Grantor. Grantor covenants and agrees with Lender that unless
      approved by Lender:

      a.    Grantor shall not sell,  assign (by operation of law or  otherwise),
            or otherwise transfer any of the Collateral,  or attempt or contract
            to do so, or grant any option with respect to any of the Collateral,
            except Inventory in the ordinary course of business.

      b.    Grantor shall not change its name,  identity or corporate  structure
            in any manner, nor change its jurisdiction of organization, relocate
            its chief  executive  office,  principal  place of  business  or its
            principal  records  with  respect  to the  Collateral,  or allow the
            relocation of any Collateral, in each case without thirty (30) days'
            prior written notice to the Lender.

                                       5
<PAGE>

      c.    Grantor shall not, directly or indirectly, create or permit to exist
            any lien upon or with  respect to any of the  Collateral,  and shall
            defend the  Collateral  against,  and take such  other  action as is
            necessary to remove, any lien on the Collateral, except for the lien
            created hereby and any Permitted Liens.

      d.    Grantor shall maintain all tangible Collateral in good condition and
            repair, ordinary wear and tear excepted.

      e.    Grantor  shall  maintain  on  the  Collateral  property  damage  and
            liability insurance in such amounts, against such risks, and in such
            forms and with  such  companies  as are  customarily  maintained  by
            businesses  similar  to  Grantor.  Each  such  policy  shall  not be
            materially  altered  or  canceled,  and  the  coverage  will  not be
            materially  reduced, in any case, without at least thirty (30) days'
            prior written notice to the Lender. Grantor shall provide the Lender
            with satisfactory evidence of such insurance coverage at the request
            of the Lender.

      f.    Grantor  shall  promptly  pay when due all property and other taxes,
            assessments  and government  charges or levies imposed upon, and all
            claims (including claims for labor, materials and supplies) against,
            the Collateral,  except to the extent the validity  thereof is being
            contested in good faith and by appropriate  proceedings and adequate
            reserves are being maintained in connection therewith; provided that
            this Section 7(f) shall not apply to claims for labor,  materials or
            supplies which Payee consents in writing shall be excluded herewith,
            notwithstanding  that such claims, if unpaid, might become a lien or
            charge upon such properties or any part thereof.

      g.    Grantor  shall  keep  and  maintain  at its  own  cost  and  expense
            satisfactory  and  reasonably  complete  records of the  Collateral.
            Grantor shall furnish the Lender with such information regarding the
            Collateral  as the Lender may  reasonably  request from time to time
            and shall allow the Lender,  upon reasonable  notice,  access during
            normal  business  hours to  inspect  the  Collateral  and  Grantor's
            records,  accounts and books pertaining to the Collateral,  provided
            that no  restriction  as to normal  business hours shall be required
            during the continuance of an Event of Default.

      h.    Grantor  shall not  knowingly  take or omit to take any action,  the
            taking  or  omission  of which  might  impair  Lender's  lien on the
            Collateral or adversely affect the value of the Collateral.

      i.    Upon the  occurrence  and  during  the  continuance  of any Event of
            Default,  Grantor  shall  not  grant  any  extension  of the time of
            payment  of any of  its  Accounts,  Chattel  Paper,  Instruments  or
            amounts due under any of its  Contracts  or  Documents,  compromise,
            compound or settle the same for less than the full  amount  thereof,
            release,  wholly  or  partly,  any  Person  liable  for the  payment
            thereof,  or allow any credit or discount  whatsoever  thereon other
            than trade  discounts and rebates  granted in the ordinary course of
            Grantor's business.

      j.    Grantor  shall (i)  protect,  defend and  maintain  the validity and
            enforceability of the Copyrights,  Patents and Trademarks,  (ii) use
            commercially  reasonable  efforts  to  detect  infringements  of the
            Copyrights, Patents and Trademarks and promptly advise the Lender in
            writing of material infringements  detected, and (iii) not allow any
            material   Copyrights,   Patents  or  Trademarks  to  be  abandoned,
            forfeited or dedicated to the public without the written  consent of
            the Lender, unless any such abandonment is appropriate in accordance
            with reasonable and customary business practice.

      k.    Grantor  shall not  execute or  authorize  to be filed in any public
            office  any  UCC  financing   statement  (or  similar  statement  or
            instrument of registration under the law of any jurisdiction) except
            UCC  financing  statements  filed or to be filed in  respect  of and
            covering the lien created by this Agreement.

                                       6
<PAGE>

      l.    Grantor shall not amend,  modify,  waive, take any action or fail to
            take any action  with  respect  to all or a portion of any  Contract
            which Grantor  reasonably  expects or should expect would  adversely
            affect  Lender's  interest  in the  Collateral  (including,  but not
            limited to, the value of the Collateral) or which affect the timing,
            value or amount of any proceeds due under any Contract.

8.    Further Assurances.  Grantor agrees, at any time and from time to time, at
      the  expense of  Grantor,  and upon  request of the  Lender,  to  promptly
      execute and deliver all further  instruments  and documents,  and take all
      further  action,  that may be necessary or desirable,  in order to perfect
      and protect  any  security  interest  granted or  purported  to be granted
      hereby or to enable the Lender to exercise and enforce Lender's rights and
      remedies  hereunder  with respect to any  Collateral,  including,  without
      limitation,  (i)  delivering  and  causing  to be filed any  financing  or
      continuation  statements  (including  "in lieu"  continuation  statements)
      under the UCC with respect to the security interests granted hereby,  (ii)
      obtaining "control" by or on behalf of Lender of any Investment  Property,
      Deposit  Accounts,  Letter-of-Credit  Rights or  Electronic  Chatter Paper
      (with  reference  to  applicable  provisions  of the UCC with  respect  to
      "control" for such items of Collateral), (iii) placing the interest of the
      Lender as lienholders on the certificate of title (or similar  evidence of
      ownership) of any Equipment constituting Collateral owned by Grantor which
      is covered by a certificate  of title (or similar  evidence of ownership),
      (iv)  filing or  cooperating  with the Lender in filing any forms or other
      documents  required  to be  recorded  with the  United  States  Patent and
      Trademark Office, United States Copyright Office, or any actions, filings,
      recordings  or  registrations  in any  foreign  jurisdiction  or under any
      international  treaty,  required to secure or protect Lender's interest in
      the  Collateral,  (v)  transferring  Collateral  to the  possession of the
      Lender (if a security interest in such Collateral can only be perfected by
      possession),  (vi)  executing  and  delivering  or causing to be delivered
      written notice to insurers of Lender's  security  interest in, or claim in
      or under, any policy of insurance (including unearned premiums), and (vii)
      using its best  efforts to obtain  acknowledgements  from  bailees  having
      possession  of any  Collateral  and  waivers of liens from  landlords  and
      mortgagees of any location  where any of the  Collateral  may from time to
      time be stored or located.  If Grantor  executes and delivers any document
      or  instrument  pursuant to this  Section 8, such  document or  instrument
      shall be in form and substance reasonably satisfactory to the Lender and a
      copy  thereof  shall be provided by Grantor to the Lender;  and if Grantor
      takes any other  action  pursuant to this  Section 8, such action shall be
      taken with the prior  written  consent  of the  Lender and notice  thereof
      shall be given by Grantor to the Lender.

9.    Security  Interest  Absolute.  All rights of the Lender and the assignment
      and security interest hereunder, and all obligations of Grantor hereunder,
      shall  remain in full force and effect and shall  secure the  Obligations,
      and shall be absolute and unconditional, irrespective of:

      a.    any  change in the time,  manner or place of  payment  of, or in any
            other term of, all or any of the  Obligations or any other amendment
            or waiver of or any consent to any departure from the Note; or

      b.    any  taking,  exchange,  release  or  non-perfection  of  any  other
            collateral,  or any release or  amendment or waiver of or consent to
            departure from any guaranty, for all or any of the Obligations; or

      c.    any manner of application of any Collateral, or proceeds thereof, to
            all or any  of the  Obligations  or any  manner  of  sale  or  other
            disposition of any Collateral; or

      d.    any other circumstances other than releases, waivers and the like by
            the Lender that might otherwise  constitute a defense  available to,
            or a  discharge  of,  Grantor's  obligations  hereunder  or Lender's
            security interest hereunder.

                                       7
<PAGE>

10.   Continuing   Security  Interest;   Sale  of  Participations;   Release  of
      Collateral.  This Agreement shall create a continuing security interest in
      the  Collateral  and shall (i) remain in full  force and effect  until the
      payment in full of the Obligations (subject to Section 14 hereof), (ii) be
      binding upon Grantor,  its successors and its permitted  assigns under the
      Note, and (iii) inure to the benefit of, and be enforceable by (subject to
      the terms hereof),  the Lender and its successors and assigns. No sales of
      participations  in, and no other  sales,  assignments,  transfers or other
      dispositions  of, any  agreement  governing or instrument  evidencing  the
      Obligations or any portion thereof or interest therein by the Lender shall
      in any manner affect the lien granted to the Lender hereunder.  Subject to
      Section  14  hereof,  upon the  payment  in full of the  Obligations,  the
      security  interest  granted  hereby shall  terminate and all rights to the
      Collateral shall revert to Grantor. Upon any such termination,  the Lender
      will, at Grantor'  expense,  execute and deliver to Grantor such documents
      as Grantor  shall  reasonably  request to evidence such  termination.  The
      Lender shall, at the request of Grantor,  deliver any document  reasonably
      necessary  to  release  any lien  granted  hereunder  with  respect to any
      Collateral Grantor is transferring.

11.   Lender's  Duties.  The powers conferred on the Lender hereunder are solely
      to protect  Lender's  interest in the  Collateral  as a secured  party and
      shall not  impose any duty upon the Lender to  exercise  any such  powers.
      Except for the safe custody of any  Collateral in Lender's  possession and
      the accounting for money actually received by Lender hereunder, the Lender
      shall not have any duty as to any  Collateral  or as to the  taking of any
      necessary steps to preserve any rights  pertaining to any Collateral.  The
      Lender shall not have any  responsibility  or liability for the collection
      of any proceeds of any Collateral or by reason of any invalidity,  lack of
      value or  uncollectability  of any of the Collateral.  The Lender shall be
      deemed to have exercised  reasonable care in the custody and  preservation
      of any  Collateral  in the  Lender's  possession  if  such  Collateral  is
      accorded  treatment  substantially  equal to that which the Lender accords
      its own property.

12.   Events of Default; Remedies Upon Default; Actions by Lender.

      a.    The  occurrence  of an Event of Default  under and as defined in the
            Note shall constitute an "Event of Default" hereunder.

      b.    If any Event of Default shall have occurred:

            i.    The Lender may  exercise  in  respect  of the  Collateral,  in
                  addition to other rights and  remedies  provided for herein or
                  otherwise available to Lender (or any of them), all the rights
                  and  remedies  of a  secured  party on  default  under the UCC
                  (whether or not the UCC applies to the  affected  Collateral),
                  and  may  also,  without  notice  of any  kind  or  demand  of
                  performance or other demand (all and each of which demands and
                  notices  are hereby  expressly  waived to the  maximum  extent
                  provided by the UCC and other  applicable  law) reclaim,  take
                  possession,  recover, store, maintain, finish, repair, prepare
                  for sale or  lease,  advertise  for sale or lease and sell the
                  Collateral  or any  part  thereof  in one or more  parcels  at
                  public or private sale, at any exchange,  broker's board or at
                  the Lender's offices or elsewhere, for cash, on credit, or for
                  future  delivery,  and upon such other terms as the Lender may
                  deem   commercially   reasonable.   In  connection   with  the
                  liquidation,  sale or other disposition of the Collateral, the
                  Lender is  granted a  non-exclusive,  royalty-free  license or
                  other right to use, without charge,  Grantor' labels, patents,
                  copyrights,  trade secrets, trade names,  trademarks,  service
                  marks,  or  any  similar   property  as  it  pertains  to  the
                  Collateral,  in  completing  a  liquidation,   sale  or  other
                  disposition  of  the  Collateral.  The  Lender  shall  not  be
                  obligated to make any sale of Collateral  regardless of notice
                  of sale having  been given.  The Lender may adjourn any public
                  or private sale from time to time by  announcement at the time
                  and place fixed therefor,  and such sale may,  without further
                  notice,  be made at the  time  and  place  to  which it was so
                  adjourned.  Grantor  agrees  that  in any  sale  of any of the
                  Collateral,  whether at a foreclosure  sale or otherwise,  the
                  Lender is hereby  authorized to comply with any  limitation or

                                       8
<PAGE>

                  restriction in connection  with such sale as it may be advised
                  by counsel is  necessary  in order to avoid any  violation  of
                  applicable law (including  compliance  with such procedures as
                  may restrict the number of prospective bidders and the Lender,
                  require  that such  prospective  bidders  and the Lender  have
                  certain  qualifications and restrict such prospective  bidders
                  and the Lender to Persons  who will  represent  and agree that
                  they are  purchasing  for their own account for investment and
                  not  with a  view  to  the  distribution  or  resale  of  such
                  Collateral),  and Grantor  further agrees that such compliance
                  shall not result in such sale being  considered  or deemed not
                  to have been made in a  commercially  reasonable  manner,  nor
                  shall the Lender be liable or  accountable  to Grantor for any
                  discount allowed by reason of the fact that such Collateral is
                  sold in compliance with any such limitation or restriction.

            ii.   Grantor  authorizes the Lender, on the terms set forth herein,
                  to enter the premises where the Collateral (or any part of it)
                  is located,  to take possession of the Collateral (or any part
                  of it), and to pay,  purchase,  contract,  or  compromise  any
                  encumbrance,  charge  or lien  which,  in the  opinion  of the
                  Lender,  appears  to be  prior  or  superior  to its  security
                  interest.  Grantor further agrees, at the Lender's request, to
                  assemble the Collateral and make it available to the Lender at
                  places  which  the  Lender  shall  reasonably  select.  To the
                  maximum  extent  permitted by applicable  law,  Grantor hereby
                  waives all claims,  damages,  and  demands  against the Lender
                  arising  out of the  repossession,  retention  or  sale of the
                  Collateral.

            iii.  The Lender may sell Collateral without giving warranties as to
                  such  Collateral.  The Lender may  specifically  disclaim  any
                  warranties  of title or the like.  The  foregoing  will not be
                  considered  adversely to affect the commercial  reasonableness
                  of any sale of Collateral.

            iv.   If the Lender sells any of the Collateral upon credit, Grantor
                  will be  credited  only  with,  and at the time  of,  payments
                  actually  made by the  purchaser in such sale  received by the
                  purchaser and applied to the  indebtedness  of such purchaser.
                  In the event the  purchaser  in such sale fails to pay for the
                  Collateral,  the Lender may resell the  Collateral and Grantor
                  shall  be  credited   with  the  proceeds  of  the  resale  in
                  accordance  with the  preceding  sentence.  In the  event  the
                  Lender  purchase any of the Collateral  being sold, the Lender
                  may pay for the  Collateral  by  crediting  some or all of the
                  amounts described in clauses first,  second,  third and fourth
                  of Section 12(b)(vi) hereof.

            v.    Any  cash  held by the  Lender  as  Collateral  and  all  cash
                  proceeds  received  by the  Lender in  respect of any sale of,
                  collection from, or other realization upon, all or any part of
                  the   Collateral  or  the  exercise  of  any  other   remedies
                  consequent  upon an Event of Default shall be applied in whole
                  or in  part  by the  Lender  against  all or any  part  of the
                  Obligations in the following order:

                  First,  to the Lender in an amount  sufficient  to pay in full
                  the  Obligations,   including  all  reasonable  fees,   costs,
                  expenses,  liabilities  and  advances  incurred or made by the
                  Lender  in  connection  with the  sale,  disposition  or other
                  realization of the Collateral,  including without  limitation,
                  reasonable attorneys' fees;

                  Second,  upon  payment  in  full of all  the  Obligations,  to
                  Grantor or to whomsoever  may be lawfully  entitled to receive
                  such surplus.

                                       9
<PAGE>

            vi.   Grantor shall remain liable for any deficiency if the proceeds
                  of any sale or disposition of the Collateral are  insufficient
                  to fully pay the Obligations, and Grantor also shall be liable
                  for the reasonable  costs and expenses  (including  reasonable
                  attorneys'  fees and  expenses)  incurred by Lender to collect
                  such deficiency.

            vii.  Grantor  hereby  waives  presentment,  demand,  protest or any
                  notice (to the maximum extent  permitted by applicable law) of
                  any kind in connection with this Agreement or any Collateral.

13.   Expenses.  Grantor  shall upon  demand pay to the Lender the amount of any
      and all reasonable  expenses,  including the reasonable and necessary fees
      and expenses the Lender's counsel and of any experts and agents, which the
      Lender  may  incur  in  connection  with  (a) the  administration  of this
      Agreement,  (b) the custody or preservation of, or the sale of, collection
      from, or other realization  upon, any of the Collateral,  (c) the exercise
      or  enforcement of any of the rights of the Lender  hereunder,  or (d) the
      failure by Grantor to perform or observe any of the  provisions  hereof or
      of under the Note.

14.   Reinstatement.  This  Agreement  shall remain in full force and effect and
      continue  to be  effective  should  any  petition  be filed by or  against
      Grantor for liquidation or reorganization, should Grantor become insolvent
      or make an assignment for the benefit of creditors or should a receiver or
      trustee be appointed for all or any significant part of Grantor's property
      and assets,  and shall continue to be effective or be  reinstated,  as the
      case may be, if at any time payment and performance of the Obligations, or
      any part thereof,  is, pursuant to applicable law, rescinded or reduced in
      amount,  or must  otherwise  be restored or returned by any obligee of the
      Obligations,  whether as a "voidable preference," "fraudulent conveyance,"
      or otherwise, all as though such payment or performance had not been made.
      In the event that any payment, or any part thereof, is rescinded, reduced,
      restored or  returned,  the  Obligations  shall be  reinstated  and deemed
      reduced only by such amount paid and not so rescinded,  reduced,  restored
      or returned.

15.   Amendments,  Etc.  No  amendment  or  waiver  of  any  provision  of  this
      Agreement,  nor consent to any departure by Grantor herefrom, shall in any
      event be  effective  unless the same shall be in writing and signed by the
      parties necessary to amend the Note, and then such waiver or consent shall
      be effective  only in the specific  instance and for the specific  purpose
      for which given.

16.   Cumulative  Remedies.  The  rights and  remedies  hereunder  provided  are
      cumulative  and  may be  exercised  singly  or  concurrently,  and are not
      exclusive of any rights and remedies provided by law. The Lender shall not
      by any act,  delay,  omission or otherwise be deemed to have waived any of
      their  respective  rights or remedies  hereunder,  nor shall any single or
      partial  exercise  of any right or remedy  hereunder  on any one  occasion
      preclude the further  exercise  thereof or the exercise of any other right
      or remedy.

17.   Lender May Perform; Reimbursement; Power of Attorney.

      a.    If Grantor  fails to perform any  obligation  of Grantor  under this
            Agreement,  the Lender may,  but shall not have the  obligation  to,
            without prior notice to or obtaining the consent of Grantor, perform
            that obligation on behalf of Grantor, including, without limitation,
            obtaining  insurance  coverage for the Collateral and satisfying tax
            obligations or liens on the Collateral.  Grantor shall reimburse the
            Lender  on  demand  for  all  reasonable   expenses  and  reasonable
            attorneys'  fees  incurred  by the  Lender  in  performing  any such
            obligation, including interest at the interest rate specified in the
            Note.

      b.    Grantor hereby  absolutely and irrevocably  constitutes and appoints
            the Lender as Grantor's true and lawful agent and  attorney-in-fact,
            with full power of substitution, in the name of Grantor: (a) to take
            any and all such action as the Lender or any of its agents, nominees
            or  attorneys  may,  in its or their sole and  absolute  discretion,
            reasonably  determine as  necessary or advisable  for the purpose of
            maintaining,  preserving or protecting  the security  constituted by
            this Agreement or any of the rights, remedies,  powers or privileges

                                       10
<PAGE>

            of the Lender under this Agreement;  and (b) generally,  in the name
            of Grantor to  exercise  all or any of the powers,  authorities  and
            discretions,  conferred  on or reserved to the Lender by or pursuant
            to this Agreement,  and (without  prejudice to the generality of any
            of the foregoing) to seal and deliver or otherwise perfect any deed,
            assurance,  agreement,  instrument  or act as the  Lender  may  deem
            proper  in or for the  purpose  of  exercising  any of such  powers,
            authorities or  discretions,  in each case.  Grantor hereby ratifies
            and  confirms,  and hereby  agrees to ratify and  confirm,  whatever
            lawful acts the Lender or any of its agents,  nominees or  attorneys
            shall do or purport to do in the  exercise  of the power of attorney
            granted to the Lender pursuant to this Section 17(b), which power of
            attorney, being given for security, is irrevocable.  Notwithstanding
            anything to the  contrary in this Section  17(b),  no such action as
            Grantor's true and lawful agent and attorney-in-fact may be taken by
            Lender except upon the occurrence of any Event of Default.

18.   Addresses for Notices.  All notices and other  communications to any party
      provided for  hereunder  shall be in writing and mailed by  registered  or
      certified mail, return receipt requested, to the addresses for the Grantor
      and the  Lender set forth on the  signature  pages  hereto,  or, as to any
      party,  to such other  address as shall be  designated  by such party in a
      written notice to each other party complying as to delivery with the terms
      of this  Section 18: All such  notices and other  communications  shall be
      effective (i) upon personal delivery to the party to be notified;  (ii) on
      the date of first attempted  delivery after having been sent by registered
      or certified mail, return receipt  requested,  postage prepaid;  (iii) one
      (1) day after  deposit with a  nationally  recognized  overnight  courier,
      specifying next day delivery, with written verification of receipt.

19.   Forbearance;  Delay.  Any  forbearance,  failure or delay by the Lender in
      exercising  any right,  power or remedy  hereunder  shall not preclude the
      exercise  thereof.  Every  right,  power or  remedy  of the  Lender  shall
      continue  in full force and effect  until such  right,  power or remedy is
      specifically waived by an instrument in writing executed by the Lender.

20.   Severability.  Any  provision of this  Agreement  which is  prohibited  or
      unenforceable  in any  jurisdiction  shall,  as to such  jurisdiction,  be
      ineffective to the extent of such prohibition or unenforceability  without
      invalidating the remaining  provisions hereof, and any such prohibition or
      unenforceability  in any  jurisdiction  shall  not  invalidate  or  render
      unenforceable such provision in any other jurisdiction.

21.   Successors  and Assigns.  This  Agreement is for the benefit of the Lender
      and its successors  and assigns,  and in the event of an assignment of all
      or any of the Obligations,  the rights hereunder, to the extent applicable
      to  the   indebtedness   so  assigned,   may  be  transferred   with  such
      indebtedness.  This  Agreement  shall be  binding on the  Grantor  and its
      respective successors and assigns.

22.   Consent To Jurisdiction And Service Of Process. ANY LEGAL ACTION OR
      PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF
      THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF
      NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF GRANTOR
      AND LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
      NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE GRANTOR AND LENDER
      IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF
      VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR
      HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
      JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO.
      EACH OF GRANTOR AND LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS,
      COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED
      BY NEW YORK LAW.

                                       11
<PAGE>

23.   Waiver Of Jury Trial. EACH OF GRANTOR AND LENDER WAIVES ITS RIGHT TO A
      TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
      OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN
      ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY
      PARTY AGAINST ANY OTHER PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS,
      TORT CLAIMS, OR OTHERWISE. EACH OF GRANTOR AND LENDER AGREES THAT ANY SUCH
      CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY.
      WITHOUT LIMITING THE FOREGOING, EACH OF GRANTOR AND LENDER FURTHER AGREES
      THAT ITS RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION
      AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE
      OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT
      OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
      AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

24.   Advice of Counsel; Construction. Each of Grantor and Lender represents and
      warrants that it has discussed this Agreement, including, without
      limitation, Section 22 and Section 23 hereof, with its counsel. The
      parties hereto have participated jointly in the negotiation and drafting
      of this Agreement. In the event an ambiguity or question of intent or
      interpretation arises, this Agreement shall be construed as if drafted
      jointly by the parties hereto and no presumption or burden of proof shall
      arise favoring or disfavoring any party by virtue of the authorship of any
      provisions of the Agreement.

25.   Headings.  The  various  headings  in  this  Agreement  are  inserted  for
      convenience  only and shall not affect the meanings or  interpretation  of
      this Agreement or any provision hereof.

26.   Governing  Law.  This  Agreement  shall be governed  by, and  construed in
      accordance  with,  the internal  laws of the State of New York  determined
      without  reference to principles of conflicts of law, except to the extent
      that  the  validity  or  perfection  of  any  security   interest  created
      hereunder, or remedies hereunder, in respect of any item of the Collateral
      is  governed  by the laws of a  jurisdiction  other  than the State of New
      York.

27.   Counterparts.  This  Agreement  may be executed in  counterparts,  each of
      which shall constitute an original.

<PAGE>

      IN WITNESS  WHEREOF,  the parties  have caused this  Agreement  to be duly
executed and delivered as of the date first above written.

ARDENT PHARMACEUTICALS, INC.

By: /s/ Phillip S. Wise
     ------------------------

Name:   Phillip S. Wise
Title:  CFO

By: /s/ Christopher Every
     ------------------------
Name:   Christopher Every
Title:  President and CEO
        Enhance Biotech, Inc.

BIOACCELERATE, INC.
     ------------------------
By: /s/ Linden Boyne

Name:   Linden Boyne
Title:  CFO

                                       12
<PAGE>

                                                                      Appendix 1

The following items shall be excluded from the terms of this Security Agreement
for the duration of the present leasehold arrangements with the lessor under
agreement reference: GE/Oxford Venture Finance LLC Master Security & Loan
Agreement No: 4114151 of February 21, 2001

The items included are detailed in the attached schedules:

                                       13

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